issn : 2278-9111 sit journal of management 8(1); i; 6 i 18

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SIT Journal of Management. Vol.8 (1); 2018

SIT Journal of

Management 8(1); i; 6 I 18

© Dept. of Business Administration, Siliguri Institute of Technology, Siliguri

http://www.ejsit.orgSITJM

Aims and Scopes

To comprehend and deal with multi-disciplinary subjects and issues, academicians and students need to be knowledgeable about interrelated disciplines of management. To encourage and promote research across a wide breadth of management topics, this journal has articles pertaining to various fields of management. SIT Journal of Management, SITJM, is a bi-annual journal published with the aim to provide an online publishing platform for the academia, management researchers, and students to publish their original works. SITJM seeks original manuscripts that identify, extend, unify, test or apply scientific and multi-disciplinary knowledge concerned to the management field.

ISSN : 2278-9111

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ISSN : 2278-9111SIT Journal

of Management 8(1); ii; 6 I 18


http://www.ejsit.org SITJM

Mentor

Mr. Satyam Roychowdhury, Hon'ble Managing Director,

Techno India Group

Chief Advisor

Prof.(Dr.)J. Jhampati, Director, Siliguri Institute of Technology,

Siliguri Institute of Technology

Advisor

Prof. D. Nandi, Head, Dept. of Business Administration,


Editor-in-Chief

Prof (Dr.) Dwarika Prasad Uniyal, Dean, Faculty of Business,

Flame University, Pune

Managing Editor

Dr. Debasis Bhattacharya, Associate Professor, Dept. of

Commerce, University of North Bengal

Executive Editors

Dr. Dipak Saha, Asst. Prof. Dept. of Business Administration,


Dr. Shuvendu Dey, Asst. Prof. Dept. of Business Administration,


Vol. 8, (1); June 2018

EDITORIAL BOARD

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Associate Editors

Prof.(Dr.) Debabrata Mitra, Dept. of Commerce,

University of North, Bengal

Prof.(Dr.) Nitish Datta, Professor, Dept. of Economices,

University of Kalyani

Prof. (Dr.) P.K.Jain, Professor, FMS, Udaipur

(M.L.Sukhadia University),Udaipur, Rajasthan

Prof.(Dr.) Madhumita Mohanty, Professor, IISWBM, Kolkata

Prof.(Dr.) Tanmay Dasgupta, Professor, Dept. of Management

University of Burdwan, India

Prof.(Dr.) Isita Lahiri, Professor, Dept. of Management,

Universityof Kalyani, India

Prof.(Dr.) S.N. Dhar, Professor, Dept. of Commerce,

University of North Bengal

Dr. Madhusudan Karmakar, Associate Professor, IIM Lucknow

Dr. Sajal Das, Associate Professor, Dept. of Commerce,

University of Calcutta

Dr. Partha Sarathi Choudhuri, Dept. of Business Administration,

University of Burdwan

Dr. Mrinal Kanti Das, Department of Commerce, Kanchrapara

College (Affiliated to University of Kalyani)

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of Management 8(1); iii; 6 I 18


http://www.ejsit.org SITJM

Editorial MessageFrom the Desk of Editor-In-Chief:

There are a lot of challenges organizations are facing in the globalised era. Innovative management strategies can play a very distinctive role in bringing about effective changes in the field of Marketing, Finance, Human Resource, and General Management practices so that organizations can successfully cope with these challenges. One of the key objectives of management research should be its usability and application. The SIT Journal of Management has been very productive as authors from diverse backgrounds have contributed articles that glimmer a debate on the research focused on innovative management practices. We are really overwhelmed by the enthusiasm with which the contributors from across the length and breadth of the country have expressed their desire to submit papers on various contemporary issues from different fields of management. In recent years, research on management related fields has augmented, and it has become a basic prerequisite for academicians and practitioners to suggest ways through contemporary research to suggest proactive strategies to cope up with the changes in both micro and macro environment. This is the age of performance. Organizations are becoming very careful in enhancing their performance in all spheres - may be customer satisfaction or their responsibilities towards the society. Numerous studies are being conducted to receive feedbacks from customers on the services and products offered by the organizations. Such information enables them to enhance their performance in improving their product and service quality.

Prof. (Dr.) Dwarika Prasad UniyalEditor-In-Chief SIT Journal of Management

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of Management

8(1); iv; 6 I 18 © Dept. of Business Administration,

Siliguri Institute of Technology, Siligurihttp://www.ejsit.org

SITJM

CONTENTS Sl. No. Title of the paper & Author/(s) Page No.

Gender differences in workplace motivationMs Pratyusha Guha and Mrs Sharmistha Bose 1-10

Use of Data Analytics in Social Media: Developing Opinion MiningDr Arunava Bhattacharya 11-18

An empirical analysis of financial transactions and its impact on financial growth of a corporate company of India.Arup Kumar Bose 19-32

A Comparative Analysis of Working of Mutual Funds in IndiaRisha Chettri and Sagar Sharma 33-41

Rural Entrepreneurship - Problem and Prospects: An Empirical AnalysisDr. Sidhartha Sankar Laha and Ms. Paramita Choudhury 42-62

A study on work life balance of female employees in apublic sector bankDamini Bose And Ankush Dasgupta 63-73

An Empirical Study on the Determinants of the Capital Structure and the trends of Return in a Leading Indian Textile CompanyArup Kumar Bose and Santanu Paul 74-83

A Study on Consumer Behaviour towards Eco- friendly Paper & Impact of Advertisement & Sales PromotionTanuka Chakraborty & Anupam Ganguly 84-93

The Challenges of Personnel Management in the Panchayati Raj InstitutionDr. Dipankar Rudra, Fr. George Chempakathinal and Mr. Anirban Ghosh 94-103

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Gender Differences in Workplace Motivation


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8(1); 1-10; 6 I 18 © Dept. of Business Administration,


SITJM

Abstract:

The Employee motivation at workplace is a crucial factor which leads to the performance of the organization. Employee motivation is important because it helps the management to achieve the organization's goal. Motivated employee helps the organization by achieving higher levels of output and increasing the productivity. Motivation is the desire to achieve a goal. There are several factors affecting motivation of employees. Motivational factors are found to be different for both men and women at the workplace. The purpose of this study is to compare the motivating factors of men with women at workplace. Men and women have different perspective of what is more important and more motivating for acquiring a good work performance. They prioritize their needs at the workplace. Men place a higher value than women do on the 'instrumental values' such as basic salary and bonuses as motivational factors in their work performance. Women, on the other hand, place more importance than men do on inter-personal relationships at the workplace. An analysis of this comparison will tell us whether women are more satisfied than men with their job. Therefore, discovering whether gender is associated to job motivation and performance in the workplace could lead to improvements in the workplace that will help the employees to remain satisfied with their jobs. This study is based on job motivation which is linked to job performance leading to organization commitment.

Keywords: Gender difference, Motivation, Job Satisfaction, Job Performance


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Pratyusha GuhaAssistant Professor (Visiting)Department of Business AdministrationSiliguri Institute of TechnologyEmail Id: [email protected]

Sharmistha BoseAssistant Professor (Visiting)Department of Business AdministrationSiliguri Institute of TechnologyEmail Id: [email protected]

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Introduction

Employee motivation is a factor, which helps an employee to pursue work tasks or goals. It's what causes to act in a certain way. Employee motivation is the level of energy, commitment, and creativity that a company's workers bring to their jobs. Whether the economy is growing or shrinking, finding ways to motivate employees is always a management concern. Without a motivated workplace, companies could be placed in a very risky position. Motivation is the inner drive that directs an employee's behavior toward goals.

Motivation at Workplace: Most employees require motivation to feel pleasant about their jobs and perform optimally. Companies need individuals who are dedicated to give their best performance at their job. If employee motivation is lacking in the workplace, then it will have an adverse effect on the performance of the employees. Low team morale, lack of energy, lack of initiative, mistakes and high staff turnover are just some of the clues that motivation is lacking. Motivation in workplace is a central part of leadership. The key to an effective workplace employee motivation strategy is to provide a range of incentive that will appeal to different personalities. Some employees are money motivated while others find recognition and rewards personally motivating. Motivation levels within the workplace have a direct impact on employee productivity. Workers who are motivated and excited about their jobs carry out their responsibilities to the best of their ability and production numbers increase as a result.

Motivation Factor differs between Men and Women: There are several factors that affect to motivate both men and women at workplace, but what factors motivate each gender differs. Men and women have their own priority when it comes to achieve high level position at a workplace. The life goals and outcome for men and women that has linked their professional career are different. Men and women both interpret data or situations in a different manner. This translates into different motivation. Women often works towards their emotions where as in case of men competition is a motivating factor. Men and women share information differently. Men tends to give the exact information but women tend to sugar coat the information. If the gender differences could be found, then it could be better understood how to motivate employees and aim towards greater productivity.

Need for Motivation

Motivating the employees is vital to any business. A motivated workforce means a highly productive staff, all of which will help in achieving the business goals. And this is the main objective in organizational and business plan.


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There are several reasons why employee motivation is important. Motivation is important because it allows as a leader to meet its organizational goals. In fact, without a motivated workforce, the organization will be in a very precarious position. It's through motivation process that the human resources can be utilized by making full use of it. Level of efficiency is improved by motivation. Motivated employees achieve their organizational goal. It is an important factor which brings employee satisfaction. Motivation also leads to stability of work force, which is very important from the point of view of reputation and goodwill of a concern.

Motivation is triggered by 2 things: Need and Goal.

Need: Need is pretty basic. For an instance, an individual NEED food. So he becomes motivated to get some. Such as other needs are shelter, sleep, water hereby the idea can be derived. If one is living in poverty, these needs can be pretty motivating. But if the rent of the house is paid, and there's food in the cupboard, it becomes a bit tougher to jump off the coach and motivate oneself.

Likewise, there are many needs which individual have and these need can be classified into two groups; Primary Needs, Secondary Needs

Primary Needs: Primary needs are those of biological need, such as food, water, and oxygen. The very basic needs that human beings require everyday are food, clothing and shelter. These daily needs of humans are called primary or physiological needs, and consist of the physical requirements for the human body to work properly, including air, water and sleep. To eat, have clothes on, and live somewhere are likewise fundamental needs of human beings, necessary for their survival. These things people need constantly in order to keep alive. Hence, human beings need to meet their primary needs always, no matter how much they'd previously met these basic needs, unlike the secondary set of human need.

Secondary Needs: Secondary needs are generally psychological, such as the need for nurturing, independence and achievement. These are the higher needs of individuals that individual strongly desire when primary needs have been satisfied. While primary needs are constant, human beings graduate through their secondary needs. Secondary needs consist of four human needs, each of which people transcend when satisfied. In this way people move further up to the triangle of human needs.

Goals: Goals are the core to successful motivation. But for motivation to be successful, goals need to be specific. They also need to be:

· Specific – For instance, “I want to be rich” is not specific. I want to


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make Rs 5 million is specific. I want to make Rs5 million in the next 5 years is very specific

· Difficult but attainable – None of the greatest human goals have been easy. It seems to be hard wired to rise to a challenge. Studies have shown that people are more successful attaining difficult goals than easy ones.

· Accepted – Goal should be accepted by an individual. One really can't set a goal which isn't accepted by oneself.

· Feedback and evaluation – Both are critical to goal success. Feedback must be provided when goal is achieved. Rewards help in motivation. Whether it's a financial reward (bonus), or a personal reward (One will take a vacation to New York).

Some things can help improve the chance of a goal being achieved.

- Goals are more effective when used to evaluate performance. For example: “Well done Sally, you've achieved all the goals on your Performance Plan, so I will give you a raise!”- Deadlines improve goal achievement.

- Learning goals lead to higher achievement than performance goals. If one has to learn something new in order to achieve the goal he have a greater probability of success.

- Accountability can help. This is easier in the workplace, for example: In an office. Where one's boss hold him accountable. Or if considered our self, how would one hold oneself accountable? These questions can help an individual to feel motivated and achieve his or her goal. If one's goal is to run a marathon, one should join a community of runners.

One of the most famous goals of the 20th century is landing a man on the moon, This goal was difficult. and specific.

Personal goals should align with your personal values and strengths. There are many young individuals, who says “I don't know what I want to do with my life”. After exploring their values and their strengths, they often become very focused and ready to tackle the most amazing goals.

Several Factors Affecting to Motivation at Workplace

Incentives

An incentive is a motivating factor that drives behavior and motivate employees to produce quality work. Employers use several types of incentives to increase production. Employee incentives includes paid time


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off, bonuses, cash and travel perks. Incentives drive employee motivation because they offer workers more to strive for than a regular paycheck.

Recognition

Many employees need recognition from their employers to produce quality work. Recognition and employee reward systems helps identifying employees performing their jobs well. Acknowledging a job which is well done makes employees feel good and it encourages them to do better. Employers recognize workers by tracking progress and providing feedback about how they have improved over time. Public recognition is also a motivating factor that drives worker productivity.

Self-Motivation

Some employees are motivated through a sense of accomplishment and achievement for meeting personal and professional goals. Many workers are self-disciplined and self-motivated. Employees who feel motivated on their confidence in their abilities have little effect on incentive and rewards. Those employees can personally identify with their role within the organization. These individuals perform productively for the sake of the personal challenge their work provides.

Implementation Strategies

There are several ways employers can motivate employees and drive worker productivity. Because different factors influence workers in different ways, employers can utilize motivation strategies that encompass several techniques. For example, to influence workers who are money motivated, an employer may implement a daily "spiff" that pays cash instantly to employees who meet short-term production goals. To achieve long-term production goals, an employer could implement a program that encourages friendly competition between workers to meet production numbers. At the conclusion of the program, employers can publicly recognize top performers for a job well done.

Gender Differences: What motivates Men and Women at workplace?

Motivation factors are playing a vital role in growth and development of the Organisation as well as for the employees. Motivational factors are found to be remarkably 'different' for both the genders at a workplace. Both men and women have different perspectives on what is important and motivating for good work performance. For an example women are more satisfied in their jobs but have a low commitment level as compared to men if given the same work environment. Different values that solicit to the two genders, creating them reacting differently to opportunities bonus etc. It has been observed


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that men give high preference over 'instrumental values' compared to women who go for 'softer issues'. Instrumental values are salary and bonuses, whereas softer-issues are inter-personal relationships at workplace, respectful treatment by the employer and a possibility of reconciling work and family life. Therefore, there is a gender difference in case of factors of motivation and commitment. Let us take a closer look on to the various motivational factors to find out the different responses of men and women.

Financial Rewards

This is one of the most common factor used by the many organisations to motivate employees.

Men: They generally respond better to motivation through financial rewards. Men tend to work harder and seek a raise with greater anticipation than women.

Women: A pay raise somewhat motivate the women. Women are also pleased to receive a bonus for their job performance.

Acknowledgement

Women: Women respond more favorably to frequent acknowledgement. Women like to get verbal and written acknowledgement for their work performance more often than men do.

Men: Acknowledgement motivates men as well. They also respond well to this motivation factor that leads to their job performance.

Training

Women: Women need these training programs structured in a different manner as they have too many care-taking responsibilities to attend for a college program, etc. Women therefore respond better to 'skill-development days' rather than sessions spanning days, weeks and months. Trainings during workdays would keep women from having to take out extra time away from their domestic responsibilities.

Men: Men also need these training programs for their career advancement and fortifying their knowledge. In comparison with women, men would readily welcome a training program of all sorts, including the ones offered out of town.

Respect


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Respect is one of the motivating factors that may increase the overall job satisfaction of the employees which leads to improvising the business operations.

Women: Women prefers to work in a respectful environment which is an essential pre-requisite for working in an organization. Women respond more positively than men in terms of respect.

Men: Men also respond well to this motivating factor. Respect is one of thePower

Men: Power is generally a crucial motivating factor for men. They have a strong inclination to seek greatness and to have sense of value. Women: Women also yearn for importance (in form of acknowledgement), to men, it is the primary motive in many areas of life.

Teamwork

Women: Teamwork is a more natural fit for women than men. women are more inclined to work with others and builds positive relationships with their co-workers. Women, conversely, are better suited for 'communal behavior', as compared to men.

Men: Men tend to prefer autonomy at work

Emotions

Women: Women are generally more emotionally motivated at work. drives women are driven into higher levels of productivity by consistent support and encouragement for a job done successfully.

Men: They seek motivation through the success itself, and the power they derive out of accomplishment and promotion.

Competition

In a good work environment with a general competitive group of employers, it is possible to motivate both the genders through healthy and friendly competition. The key to inducing healthy competition at the workplace is wise management. If managed successfully, competition can motivate both the genders.

Men: Men is typically stimulated by competition at workplace. Women: They respond lower in terms of competition in comparison to men.

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The following table shows the order of the above motivating factors for both men and women.

Men vs Women at Workplace

· Men tend to like power, control and strength. · Women are more emotionally driven. · A man tends to jump in when he comes face to face with an issue and take over. He will deal with it then and there and get it over with. · A woman asks questions first, make sure she understands the task, and then completes it to perfection. · Men like to work alone. · Women prefer to help each other.

Therefore, going through the above motivational factors, it can be understood that both men and women have their own, perspective on motivational factors. Women are found to be professionally under-represented among higher ranks in the corporate sector, around the world because of the reasons such as lower levels of commitment, job satisfaction coming way too early in professional life, settling for less, and doing so, much sooner than men. Furthermore, “What Motivates Men and Women at Work?” shows, one of the major drivers of why women come back to work is recognition. This is closely linked with their need to feel respected that is identified as a major motivator for women. Also, emotions are closely linked to acknowledgement, which is another important motivator for women. Whereas men seem to prefer “hard” motivators like financial rewards, women are more encouraged by “soft” motivators such as appraisal or acknowledgement.

Measuring Motivation in Workplace with Respect to Gender Differences There are certain points which can be considered for measuring employee (men and women) motivation. These are as follows:

1. What is the primary aim of the company?

MEN WOMEN

1. Financial Reward Respect

2. Power Emotion

3. Competition Financial Reward

4. Respect Acknowledgement

5. Training Power

6. Acknowledgement Training

7. Teamwork Teamwork

8. Emotion Competition


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The Men and Women will feel motivated if they understand the company's aim its principle and mission. They must be clear about the goals, so that they can feel their own value in the company and perform better in their work.

2. What really motivates the staff?

Men and Women both have different motivating factors. It's important for an employer to understand the difference and take measures to motivate them accordingly. This will lead to better job performance.

3. Do employees feel empowered?

Men and Women should have their own job description that will have some autonomy and will allow them to find their own solutions.

4. Are there any recent changes in the workplace or company that might have affected motivation?

If the company have imposed a recruitment freeze or lost people, this will have an effect on motivation. The employer should gather information from both male and female employees regarding their concern, thought and fear about these events. Employees should be treated with respect and honesty.

5. What are the pattern of the motivation of the company?The employer should discover the highest and the lowest level of motivation in men and women. This discovery can help the employer to find out the gap between the two and try to breach the gap.

6. Are employee goals and company goals aligned?

First, the company needs to establish how it wants both men and women to spend their time based on what is most valuable. Secondly the needs have to be compared with how the individuals actually spend their time.

7. How do employees feel about the company?

The employer needs to find out how the male and female employees feel about their job security. It requires to find out their concern about safety and whether their needs are taken care of. If necessary, suggestions can be taken from the employees for improvement of loyalty and commitment.

8. How involved are employees in company development?

The employees both male and female should feel that they are valuable for the company. Their opinions regarding any issues should be heard and equal

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opportunities should be given to both male and female employees.

9. Is the company's internal image consistent with its external one?

The company may present itself to the world as the “caring airline”, “the forward thinking technology company” or the family hotel chain. The employees may not be immune to this image at the time of their joining. It is the responsibility of the employer to present the image within the company in the way they treat the employees, the employer may notice motivation problems. It is required to find out the disparity between the employee's image of the company from outside and from the inside.

Conclusion

To conclude that men and women are fundamentally different in their approach to work is to also ignore the unmistakable fact that there are large disparities in the treatment of men and women in the workplace. Employers should discover the disparities between men and women to motivate them accordingly. The analysis of the study identifies the strongest drivers of engagement among male and female employees. In many organization, employers use the techniques for motivation which motivates men more than women and the women remains unsatisfied with their working environment. To bring a change in the working environment it is important to note the divergence between what drives men and women to engage at work may also be the result of employers treating the genders differently. Knowing and managing gender differences will help the employers to effectively motivate male and female employees, increase productivity, foster loyalty, and improve physical and mental well-being.

References:

M D Dunnette, and L M Hough [eds] Handbook of Industrial and Organizational Psychology, Vol 1, 2nd edtn, Palo Alto, California, Consulting Psychologists Press

McDougall, W. An introduction to social psychology, London: Methuen, 1908

Vroom, V. H. Work and motivation. New York: Wiley, 1964.

Workplace motivation, a review of the literature, Roderic Gray, 2000, published on the internet by, KumpaniaConsulting, www.kumpania.co.uk

Korman, A (1974) The Psychology of Motivation Englewood Cliffs, New Jersey, Prentice Hall


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Use of Data Analytics in Social Media: Developing Opinion Mining


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SITJM

Dr Arunava BhattacharyaAssistant ProfessorDepartment of Business Administration Siliguri Institute of TechnologyE-mail Id : [email protected]

Abstract:

The process of churning and messaging massive data applying advanced analytics techniques to discover unseen patterns and possible correlations are named as Big Data Analytics. The churning of data applying advance analytics techniques for the Business key performance indicator variables to derive and predict Business Decisions is termed as Business Analytics. Sentiment analysis or opinion mining is the computational study of people's opinions, appraisals, attitudes, and emotions toward entities, individuals, issues, events, topics and their attributes. The task is technically challenging and practically very useful. There are now several data and text analytics frameworks available for use by business organizations. These frameworks allow to automatically extracting opinions in real time from social media websites. Most of us are devoting a significant amount of time regularly in various social media. Most of the time we spent here is not very productive. This article is an attempt in this regard where the upcoming managers can utilize a powerful medium with the help of business analytics for their productive decision-making processes.

Key words: Big data, Business Analytics, Opinion Mining, Social media websites or Blogs


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IntroductionSentiment analysis or opinion mining is the computational study of people's opinions, appraisals, attitudes, and emotions toward entities, individuals, issues, events, topics and their attributes. The task is technically challenging and practically very useful. For example, businesses always want to find public or consumer opinions about their products and services. Potential customers also want to know the opinions of existing users before they use a service or purchase a product. With the explosive growth of social media (i.e., reviews, forum discussions, blogs and social networks) on the Web, individuals and organizations are increasingly using public opinions in these media for their decision making. However, finding and monitoring opinion sites on the Web and analyzing the information contained in them remains a formidable task because of the proliferation of diverse sites. The average human reader will have difficulty identifying relevant sites and accurately summarizing the information and opinions contained in them. Moreover, it is also known that human analysis of text information is subject to considerable biases, e.g., people often pay greater attention to opinions that are consistent with their own preferences. People also have difficulty, owing to their mental and physical limitations, producing consistent results when the amount of information to be processed is large. Automated opinion mining and summarization systems are thus needed, as subjective biases and mental limitations can be overcome with an objective sentiment analysis system. In the past decade, a considerable amount of research has been done in academia. There are also numerous commercial companies that provide opinion mining services.

Internet of Things (IoT) fundamentally, has grabbed the attention from both the providers as well as the users because of its ability to connect devices, people and goods over a global network. Each entity in the IoT landscape is allotted a unique identifier and the idea is to gather live data from each of them through the network. Live data can help organizations in deriving useful and interesting trends based on advanced analytics models. This process of churning and messaging massive data applying advanced analytics techniques to unearth unseen patterns and possible correlations are named as Big Data Analytics.

Big Data is characterized by three main components, Variety, Velocity and Volume. It is now rapidly expanding in all sciences and engineering domains, including physical, biological and biomedical sciences. Until now big data was largely made of transactional data generated manually, which used to be stored in relational databases. IoT makes a shift in the domain of Big Data management. It brings in a significant revolution in the conventional solutions by intelligently connected devices, people, processes and things via sensors. The most fundamental issue faced by the Big Data applications is churning of voluminous data, adding relevant information to convert the same into knowledge for decision-making. The


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churning of data applying advance analytics techniques done for the Business key performance indicator variables to derive and predict Business Decisions is termed as Business Analytics.

Data analytics is an essential research topic in the IoT domain that has attracted many different research areas such as statistics, machine learning and data mining. The insight that they gain from such analyses is used to direct, optimize, and automate their decision-making and build a knowledge base for future. It results in successful achievement of a variety of specific organizational goals with the help of the models built in the system. Advanced Analytics when applied in the context of Business Key Performance Indicators and the decision- making depends on the data collected is called as Business Analytics. It is envisaged and proved in some cases that IoT can actually reduce complexities and help create Smart Environments. A preliminary research in applying/using IoT ensures its inclusion in specific environments is missing and it has yet to make big impact.

The investigation and a thorough examination of the role of IoT in Business Process Management is yet to be explored. The Insights gained and the interpretation from the knowledge for taking sensible business decisions hugely depend upon the quality of knowledge possessed by an individual. For the Insights to be relevant to the existing Business strategies and goals of a focused organization, it is equally important to look at the existing live data along with the past data for comparison. While largely the past data would be used to generate useful and meaningful trends, the current month data would give an immediate insight to the relevancy of the correlations and help quick decision-making. Gathering of real time data through the smart sensing devices that is unpredictable and taking Business Strategy and goal-aligned decisions is a promising field of IoT Analytic application. There is no black box or straight- forward answer to the question of which the data to be evaluated to arrive at a correct Business decision-making model.

In July 2009, a survey conducted by Universal McCann1 concluded that 32% of the 200 million bloggers worldwide blog about opinions on products and brands. In addition, it was found that 71% of the 625 million active internet users actually read blogs. So not only is there an enormous amount of content on the blogosphere that present opinions on products, this content also has a massive readership rivaling any traditional media. A separate survey on Trust in Advertising conducted by Nielson2 found that 78% of respondents put their trust in the opinion of other consumers. In contrast only 57% of consumers trust advertising in traditional media – newspapers, magazines, TV, and radio. So not only are a large number of consumers reading opinions on products on blogs, they are also more likely to adopt these opinions as opposed to being swayed by traditional advertising. Interestingly, despite the vast amount of resources spent on search engine


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advertising, only 34% of consumers put their trust in such advertising.

The automated analysis of blogs and other social media raises several interesting questions from a marketing perspective:

1. Considering the enormous size of the blogosphere, how can we identify the subset of blogs and forums that are discussing not only a specific product, but higher level concepts that are in some way relevant to this product?

2. Having identified this subset of relevant blogs, how do we identify the most authoritative or influential bloggers in this respect?

3. How do we determine and characterize specific sentiment expressed about an entity (e.g. product) mentioned in a blog or forum?

4. How do we tease apart novel emerging topics of discussion from the constant chatter in the blogosphere?

Current directions: We have explored text-based and network based techniques, and their combinations, for relevance filtering. Text-based techniques make a judgment about relevance purely guided by the textual content of a blog. There are two natural families of such techniques, one coming from traditional IR where keyword searches are used to retrieve relevant blogs, and the other coming from traditional Machine learning, where relevance filtering is posed as a standard classification problem. These techniques differ in the type of marketer input they require. In the former case, a marketer generates a list of keywords related to the brand/product being monitored, while in the latter case, they point to blogs or blog posts that can serve as positive examples for training a classifier. Note also, that the filtering problem is intrinsically one-class, i.e., the notion of negative examples is less well-defined. Thus, one needs to consider exclusion patterns in keyword searches, one-class classification methodologies, or the use of a random sample of unlabeled blogs.

Opportunities: The goal is to efficiently discover blog sub universes given minimal human supervision. Ideally, what is needed is a highly scalable methodology that holistically combines the strengths of various techniques to integrate all sources of information in a principled manner. This involves exploiting both the content of blogs and their network structure, while incorporating multiple forms of human supervision, e.g., in the form of a set of keywords as well as few positive examples of relevant blogs. Such a model may then be used to iteratively expand the sub-universe being discovered, and to query marketers to provide more judicious supervision so as to actively construct an optimal relevance filter. Thus, this problem brings together opportunities in semi-supervised and active learning, use of multiple supervisions and the combination of text and network structure in classification models.


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Having identified a subset of relevant blogs, it is then useful to determine the most authoritative bloggers in this space. These are the experts whose opinions catch on most rapidly. It is important to identify this set of bloggers, since any negative sentiment they express could spread far and wide. These are the bloggers who marketers should keep most accurately informed and actively engaged. In addition to authorities, there are bloggers who are very well connected, who are most responsible for the spread of information in the blogosphere. These influencers are often (but not always) blogs with high authority. When presented with a large number of posts relevant to a topic, ordering them by the blogger's influence assists in information triage, given that it is not feasible to read all posts.

Current directions: Since blogs are often linked to by other blogs, this linkage information is commonly used to determine a blog's authority. Oone can use PageRank and Flow Betweenness as measures of authority and influence. However, there are several other measures that could be viable alternatives, such as Degree Centrality, Closeness Centrality, and Betweenness Centrality. Using these network measures seem to produce a qualitatively appealing ranking of nodes in social networks graphs. However, in order to objectively select the best approach, it is important to quantitatively compare approaches. This is problematic, since the notions of authority and influence are not properly defined, and vary based on the application, and how the network was generated.

Measures such as PageRank rely solely on the link between posts in the current graph. However, we also have the content of all posts and the evolution of links over time. These additional sources of information should provide much more insight into the influence of a blogger. For instance, if the content of a post “diffuses” to posts that link to it, then it is probably more indicative of the bloggers influence, than if it just receives a link. Also, if a post receives a lot of links in a short period of time, it is indicative of greater potential influence, than a post that has gathered the same number of links over a long period of time.

Another interesting approach to quantitatively evaluate the ranking of blogs is through the task of cascade detection – selecting a set of blogs to read which link to most of the stories that propagates over the blogosphere. Following the viral marketing work of Richardson and Domingos , Leskovec et al. and Kempe et al. provide efficient approximate solutions to the underlying optimization problem. These solutions, do not attempt to address the task of assigning an authority/influence score to individual nodes (bloggers) – since they are focused on optimal set selection. Furthermore they rely only on the links in the network and not the content associated with each node. However, there is a lot of potential for using such approaches to identify influencers.


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Considering that it is virtually impossible to read all user generated content, it has become crucial to automatically identify negative sentiment in blogs to enable rapid response. Additionally, significant insight can be generated from tracking the trend of sentiment expressed around products, and also observing how consumers respond to marketing actions, such as events and press releases.

Current directions: There has been significant work in Natural Language Processing (NLP) on detecting subjective versus objective statements, and the polarity of sentiment expressed in subjective statements. Much of this prior work is on knowledge-based approaches that primarily use linguistic models or other forms of background knowledge to classify the sentiment of passages. A large focus of this area is the use and generation of dictionaries capturing the sentiment of words. These methods range from manual approaches of developing domain-dependent lexicons to semi-automated approaches and even a fully automated approach. More recently, Pang et al. successfully applied a machine learning approach to classifying sentiment for movie reviews, where they cast the problem as a text classification task using a bag-of-words representation of each movie review. They demonstrated that a learning approach performs better than simply counting the positive and negative sentiment terms using a hand-crafted dictionary.

Opportunities: The expression of sentiment tends to be domain specific; hence it is preferable to use supervised approaches that can adapt to new domains. However, the set of domains to monitor may change often, requiring classifiers to adapt rapidly with the minimum of supervision. Fortunately, the task of sentiment detection lends itself well to emerging techniques for reducing supervision in classifier induction, which we discuss now. Supervision for a sentiment classifier can be provided not only by labeling documents, but also by labeling words. For instance, labeling a word such as “tragedy” as negative is one way to express our prior belief of the sentiment associated with it (though in the context of movie reviews it is often used in positive reviews). It is possible to learn from such labeled words in conjunction with labeled documents in our proposed framework of Dual Superversion. We have demonstrated that by labeling a few words and few documents we can learn an accurate model that requires less supervision than labeling only documents or only words. In particular, we construct a generative model based on a lexicon of sentiment-laden words, and a second model trained on labeled documents.

Using measures of relevance, authority and sentiment help we direct our attention to the posts that are most important for us to read. In addition to focusing on the micro-level of posts, in order to really track the pulse of the blogosphere, it is important to detect phenomena that are only visible at the macro-level of the universe of relevant blogs. Given the plethora of posts


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being produced continually it is challenging but very valuable to determine large-scale patterns of what people are blogging about, and find emerging areas of discussion.

Current directions: One commonly used approach to capture the notion of hot topics is to identify frequently occurring key phrases; and there has been considerable work in Natural Language Processing in identifying such commonly occurring collocation of consecutive words. For instance, such an approach may identify that “Amitabh” and “Bachchan” are words that frequently appear together, and as a phrase they are mentioned many times in political blogs. However, this fact may not be interesting to report, if the phrase is always frequently mentioned. Instead, if we compare the relative frequency of occurrence of phrases in the current week to the occurrences over the past month, we are likely to identify more topical (currently relevant) phrases, such as “public healthcare.”

Several recent papers have developed models of temporal evolution of topics in document streams. The main idea is to construct topic models in different time-windows tying them together to maintain some form of temporal continuity. In this direction, we are currently exploring regularized non-negative matrix factorizations. An associated problem is that of Guided Topic Evolution, that is, to incorporate feedback from a user in an online fashion as to which topics should be tracked, or discarded, from the analysis.There are now several data and text analytics frameworks available for use by business organizations. These frameworks allow to automatically extracting opinions in real time from social media websites by applying the combination of statistical modeling and rule-based natural language processing methods. The overall aim is help in solving business problems and make smarter business decisions. SAS [Statistical Analysis System] and STATS [IBM SPSS Text Analytics for Surveys] are two such popular frameworks. SAS is business analytics/business intelligence software developed by SAS, to manage business intelligence, data management and predictive analytics. It holds the largest market share in business analytics domain. STATS is a package which is specially designed to work on survey data, which can process unstructured text data to evaluate sentiment and monitor it in real time basis. These packages continuously evaluate internal and external text content about an organization and other competitors. The social media site monitoring shows where an organization is being discussed and what is being said about it. Opinion Mining is a perfect example of the positive impact that can be derived by the budding managers out of the often criticized negative dimensions of social media.

References

B Liu, “Sentiment Analysis and Opinion Mining”, Proceedings of 5th Text Analytics Summit, Boston, 2009.


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P D Turney, “Thumbs up or thumbs down? Semantic orientation applied to unsupervised classifi cation of reviews”. Proceedings of 40th Annual Meeting of the Association for Computational Linguistics, pp. 417-424, Philadelphia, US, 2001.

R Prabowo and M Thelwall, “Sentiment Analysis: A Combined Approach”, Journal of Informetrics, Vol. 3, pp. 143-157, 2009.

P Melville, W Gryc, and R D Lawrence, “Sentiment analysis of blogs by combining lexical knowledge with text classification”, Proceedings of the 15th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining – KDD, 2009.

V K Singh, R Piryani, P Waila and M Devaraj “Computing Sentiment Polarity of Texts at Document and Aspect Levels”, ECTI Transactions on Computer and Information Technology, Vol. 8, No. 1, 2014.

X. Zhu, “Semi-supervised Learning literature survey”, Tech Report 1530, Dept. of Comp. Sci., Univ. of Wisconsin, Madison.

T. Hoffman, “Probabilistic Latent Semantic Analysis”, UAI, 1999.

T. Kolda and B. Bader, “The TOPHITS model for higher order web link analysis”, Workshop on Link Analysis, Counter-terrorism and Security, SDM, 2006.

Y. Chi, B.L. Tseng, J. Tatemura, ”Eigentrend: trend analysis in the logosphere based on singular value decompositions”, CIKM, 2006.

Y.Chi, S. Zhu, X. Song, J. Tatemura, B.L. Tseng, “Structural and Temporal Analysis of the Blogosphere Through Community Factorization”, KDD, 2007.

Sharma R, Mithas S, Kankanhalli A. Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organizations. European Journal of Information Systems. 2014 July; 23(4):433-41. https://doi.org/10.1057/ejis.2014.17


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An empirical analysis of financial transactions and its impact on financial growth of a corporate company of India.


of Management



SITJM

Arup Kumar BoseAssistant ProfessorDepartment of Business AdministrationSiliguri Institute of TechnologyE-mail Id : [email protected]

Abstract:

This research article on financial statement analysis assesses the financial strength and weaknesses of ICICI Prudential Life Insurance Company Ltd. through ratio analysis. The purpose of the research is to evaluate the performance of the company by using ratios as a yardstick to measure the efficiency of the company. To understand the liquidity, profitability and efficiency positions of the company during the project and also to evaluate and analyze the various facts of the financial performance of the company. Financial statement analysis gives the analysts a clear picture about every aspect of the business. Many of the data which are in balance sheet and income statement has two aspects. Sometimes it confuses the analyst or the person, who is trying to make some conclusion out of the data, because of its complex nature. General people or the investors may or may not have the knowledge of accounting, so for them it will be difficult to make conclusion out of balance sheet and income statement. The company's financial position is satisfactory and has a good solvency position and a good check on debt financing. Company has sufficient fund for day to day activities and sufficient owner's capital to finance their fixed assets. Company has a higher gross and net profit which indicates that the company is making profit. It can grow a good upward direction trend in future years but has to make some improvement regarding current ratio & liquid ratio. Company has a very low current ratio and liquid ratio which indicates that the company cannot meet its current obligations and the liquidity position of the company is not sound. If the above problems are checked it is sure that the company will be in good position and will have a good future prospect.

Keywords: Equity and Debt Capital, Earning per Share, Profitability, Growth Ratio, Leverage Ratio.


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INTRODUCTION

Finance refers to money and credit employed in business. It involves procurement and utilization of funds so that business firms may be able to carry out their operations effectively and efficiently.

Business finance includes all types of funds from owners, borrowed to loans etc. used in the business finance which is needed by all types of organization whether it is small, large, manufacturing, trading or a multinational. Finance is needed by every business to grow. It is the money that is available by banks and other sources for commercial use through short-term and long-term loans and equity share. Money or capital is one of the main important factors of business. There will be no production, distribution, etc. without money. Finance is life blood of any business organization. Not only production needs money but every part of business needs money, it is a very important factor. The plans and goals of the business will remain a dream without money or finance. Business finance is required for the establishment of every business organization and with the growth in activities, financial needs also grows. Funds are required for the purchase of land and building, machinery and other fixed assets. Besides this, money is also needed to meet day-to-day expense of business. This is the fact that production continues in anticipation of demand. Money is required to bridge the gap between production and sales.

Financial Management is the specific area of finance dealing with the financial decision corporations make, and the tools and analysis used to make the decisions. The discipline as a whole may be divided between long-term and short-term decisions and techniques. Both share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital, without taking excessive financial risks.

Financial Statement is a statement which provides relevant information concerning an entity for those who are interested in interpreting and using that information. Financial statements are prepared from the data taken from a published annual report of a company. These statements are prepared and presented in a concise form so that the users of the financial statements can understand their meaning and purpose. Financial Statements present the financial information relating to financial affairs of a firm.

Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash flows, and a statement of retained earnings. Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization.


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NEED OF THE STUDY

1. It helps us to know the reasons for relative changes – either in profitability or in the financial position as a whole.

2. It also help to know both the short-term liquidity position vis-à-vis working capital position, as also the long-term liquidity and solvency position of a firm.

3. The study has great significance and provides benefits to various parties whom directly or indirectly interact with the company.

4. It also highlights the operating efficiency and the present profit-earning capacity of the firm as a whole.

5. The investors who are interested in investing in the company's shares will also get benefited by going through the study and can easily take a decision whether to invest or not to invest in the company's shares.

OBJECTIVE OF THE STUDY

1. Main objective of this study is to analyze the performance of the company from last 5 years.

2. To determine the financial strength of the company.

3. To get working knowledge of firm's financial aspects.

4. To determine the Profitability & Liquidity Ratios.

5. To analyze the capital structure of the company with the help of Leverage Ratio.

6. To understand drawbacks related to the functioning of firm.

7. To offer appropriate suggestions for the better performance of the organization.

METHODOLOGY

The information is collected through secondary sources during the study. That information was utilized for calculating performance evaluation and based on that, interpretations were made.

Sources of secondary data:

1. Most of the calculations are made on the financial statements of the company provided statements.

2. Referring standard texts and referred books collected some of the information regarding theoretical aspects.


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3. Method- to assess the performance of the company method of observation of the work in finance department is followed.

4. Tools used

a) Ratio Analysis

b) Graphical Representation LIMITATIONS

1. One of the factors of study was lack of availability of ample information. Most of the information has been kept confidential.

2. Lack of primary data due to aforesaid reason.

3. The study is time constraint.

RATIO ANALYSIS OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

Parameters

MAR'16 (? Cr.)

MAR'15 (? Cr.)

MAR'14 (? Cr.)

MAR'13 (? Cr .)

MAR'12 (? Cr.)

Operational & Financial Ratios:

Earnings Per Share (Rs)

16.73

19.28 84.94 72.17 56.09

DPS(Rs)

5.00

5.00 23.00 20.00 16.50

Book NAV/Share(Rs)

149.47 138.72 633.83 578.22 524.02 Margin Ratios:

Yield on

Advances

12.12

12.67 13.04 13.81 13.22

Yield on Investments

9.28

7.68 6.76 6.75 6.28

Cost of Liabilities

5.29

5.63 5.69 5.98 5.76

NIM

3.24

3.24 2.96 2.76 2.39

Interest Spread

6.83

7.04 7.35 7.82 7.46 Performance Ratios:

ROA(%)

1.42

1.80 1.73 1.62 1.44

ROE(%)

11.63

14.55 14.02 13.10 11.20

ROCE(%)

8.57

10.64 10.82 10.04 9.48 Efficiency Ratios:

Cost Income Ratio

34.70

36.83 38.32 40.58 43.05

Core Cost Income Ratio

38.73

38.75 39.44 41.39 42.87

Operating Costs to Assets

1.76

1.78 1.73 1.68 1.61 Capitalisation Ratios:

Tier 1 ratio

0.00

0.00 0.00 0.00 0.00

Tier 2 ratio

0.00

0.00 0.00 0.00 0.00 CAR 0.00 0.00 0.00 0.00 0.00

Valuation Parameters: PER(x) 14.14 16.36 2.93 2.90 3.16 PCE(x) 13.22 15.49 13.89 13.73 14.72 Price / Book(x) 1.58 2.27 1.96 1.81 1.69 Yield(%) 2.11 1.59 1.85 1.91 1.86 EV / Net Sales(x) 5.92 7.24 6.76 6.64 7.23 EV / Core EBITDA(x) 13.09 18.01 17.99 20.15 23.34 EV / EBIT(x) 7.15 7.74 7.17 7.07 7.67 EV / CE(x) 0.43 0.55 0.50 0.50 0.50 M Cap / Sales 2.61 3.72 3.26 3.01 3.05

Growth Ratio: Core Operating Income Growth 11.47 15.56 18.82 29.18 19.04 Operating Profit Growth -35.75 -3.62 7.28 -5.77 -37.35 Net Profit Growth -12.97 13.91 17.84 28.77 25.51 BVPS Growth 7.74 -78.11 9.62 10.34 9.55 Advances Growth 12.32 14.41 16.69 14.39 17.27 EPS Growth(%) -13.23 -77.31 17.69 28.68 25.40

Liquidity Ratios: Loans / Deposits(x) 0.41 0.48 0.47 0.50 0.55 Total Debt / Equity(x) 0.06 0.07 0.07 0.07 0.08 Current Ratio(x) 0.38 0.44 0.53 0.59 0.62 Quick Ratio(x) 0.48 0.69 0.63 0.67 0.86 Total Debt / Mcap(x) 0.00 0.00 0.00 0.00 0.00 Net NPA in Rs. Million 0.00 0.00 0.00 0.00 0.00


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DATA ANALYSIS AND INTERPRETATION

LIQUIDITY RATIOS

Liquidity means one's ability to meet claims and obligations as and when they become due. In the context of an asset, it implies convertibility of the same, ultimately, into cash. It has two dimensions- time and risk. The time dimension of liquidity is concerned with the speed with which an asset can be converted into cash. Risk dimension is concerned with the degree of certainty with which an asset can be converted into cash without any sacrifice in its book value. Viewed from this angle, all assets will have a degree of liquidity and assets that comprise of cash and 'near cash' items are most liquid assets.

In the context of a firm, however, liquidity means its potential ability to meet obligations. In the opinion of Solomon, E. and Springle, J., whenever one speaks of a firm's liquidity, he tries to measure the firm's ability to meet expected and unexpected cash requirements, expand its assets, reduce its liabilities or cover any operating losses. Financial position of firms is considered to be good enough provided they have adequate liquidity. Current ratio and liquid ratio are the two ratios, which directly measures liquidity.

1. Current Ratio

Current ratio is the relation between the amounts of current assets and the current liabilities. It is essentially a tool for measuring short-term liquidity and solvency position of firms. In other words, it may be stated that this ratio is taken to measure the margin of safety of current assets over current liabilities that the management of a firm maintains in obtaining business finance from short-term sources. Generally, a 2:1 ratio is considered as normal and it expresses the satisfactory liquidity position.

CURRENT RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

YEAR

Current Assets

Current Liability Ratio

2012

77.50

125 0.62

2013

77.29

131 0.59

2014

63.07

119 0.53

2015 47.08 107 0.44

2016 42.94 113 0.38


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Bar Chart showing the Current ratio of ICICI Prudential Life Insurance Company Ltd.

Interpretation:

As the current ratio measures the ability of the enterprise to meet its current obligations, a current ratio of 1.54:1 implies that the firm has current assets which are 1.54 times the current liability. Generally, a 2:1 ratio is considered as normal.

The current ratio was 0.62 to 0.38 during the year 2012 to 2016 which was below standard. The ratio gradually decreased in the following years starting from 2012 to 2016. This means that they had less of current assets than that of liability. This trend of ratios is not healthy for the organization.

1. Liquid Ratio

Liquid ratio is the ratio between quick liquid assets and quick liabilities. It is also called 'Acid Test Ratio', 'Quick Ratio'', or 'Near Money Ratio'. The normal value for such ratio is taken to be 1:1. As a tool for assessment of liquidity position of firms, it is considered to be much better and reliable than that of Current Ratio as it eliminates the snags in the same, since it indicates the relationship between strictly liquid assets whose realizable value is almost certain on the one hand, and strictly liquid liabilities on the other.

Liquid Assets = Current Assets – Inventory

LIQUID ASSET ( Rs. In Crores) :-2012 = 77.50 – 51.25 = 26.25 2013 = 77.29 – 52.40 = 24.892014 = 63.07 – 42.84 = 20.232015 = 47.08 – 25.68 = 21.402016 = 42.94 – 21.47 = 21.47


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LIQUID RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

Bar Chart showing the Liquid ratio of ICICI Prudential Life Insurance Company Ltd.

Interpretation:

Liquid ratio is, practically, the true test of liquidity. It measures the capacity of the firm to pay-off its liability as soon as they become mature for payment. Thus, a high liquid ratio indicates that the firm is quite able to pay-off its current obligations without difficulty, whereas, a low liquid ratio will create a opposite situation. A convention liquid ratio of 1:1 is considered satisfactory.

From the above figures we can say that the company has not maintained a good liquid ratio and it has been declining rapidly. But the last three years company had a hard time to pay-off its current obligations, which indicates that the liquidity position is not sound.

LEVERAGE RATIO

The term 'leverage' refers to the ability of a company to meet its long-term obligations. The long term indebtedness of a firm includes debenture holders, financial institution providing medium and long-term loans and other creditors selling goods on installment basis. The long-term creditors of a firm are primarily interested in knowing the firm's ability to pay regularly

YEAR Liquid Asset Current Liability Ratio

2012

26.25

125 0.21

2013

24.89

131 0.19

2014 20.23 119 0.17

2015 21.40 107 0.20

2016 21.47 113 0.19


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interest on long-term borrowings, repayment of the principal amount at the maturity and the security of their loans. Accordingly long-term solvency ratios indicate the firm's ability to meet fixed interest and cost and repayment schedules associated with its term borrowing.

1. Debt-Equity Ratio

Debt-Equity Ratio measures the claims of outsiders and the owners, i.e. shareholders against the assets of the firm. It is also known as External-Internal Equity Ratio, it actually measures the relationship between the external debts / equity / outsiders fund and Internal equities / shareholders fund. In short, it expresses the relation between the external equities and internal equities, or the relationship between borrowed capital and owner's capital. It is a measure of long-term solvency. It reveals the claims of creditors and shareholders against the assets of the firm, i.e. comparative proportion of Debt and Equity. Here, Debt and Creditors includes all debts, whether long-term or short-term, or in the form of Mortgages, Bills and Debentures etc. On the other hand, owner's claims consists of Equity and Preference Share Capital + Reserves and Surplus + Capital Reserves + Reserves for Contingencies + Sinking Fund – Fictitious Assets viz. Preliminary Expenses etc.

DEBT-EQUITY RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

Bar Chart showing the DEBT-EQUITY RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

YEAR TOTAL DEBT NET WORTH Ratio

2012

123.44

1543.06 0.08

2013

86.10

1230.04 0.07

2014

99.64

1423.46 0.07

2015 113.62 1623.09 0.07

2016 86.10 1435.07 0.06


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Interpretation:

Debt-Equity ratio tells the story about the utilization of debt financing in a firm, i.e. proportion of claims between outsiders and the shareholders against assets of the firm, in order to give information to the outsiders above their position. There is no standard ratio which is applicable for all enterprise, but sometimes more than 2:1 is found to be satisfactory. It means in the financial structure of the company debt capital should be 2 times of the firm's equity capital.

From the above analysis we can conclude that in all year's debt-equity capital was below standard. This is sometimes preferred to be good for the creditors, as there will be lower risk to them when the firm is not so much dependent on long-term debt. For creditors, a lower rate reveals a high margin of safety.

GROWTH RATIO

The PEG ratio ( to ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (

In general, the is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates.

The PEG ratio is considered to be a convenient approximation. It was originally developed by Mario Farina who wrote about it in his 1969 Book, A Beginner's Guide, To Successful Investing In The Stock Market. It was later popularized by One Up on Wall Street that "The P/E ratio of any company that's fairly priced will equal its growth rate", i.e., a fairly valued company will have its PEG equal to 1.

1. OPERATING INCOME GROWTH

Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes a company's gross income, which is equivalent to revenue minus COGS, and subtracts all operating expenses and depreciation. A business's operating expenses are costs incurred from operating activities and include items Such as office supplies, heat and electricity.

price/earnings growth

EPS), and the company's expected growth.

P/E ratio

Peter Lynch, who wrote in his 1989 book


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https://en.wikipedia.org/wiki/P/E_ratio

http://ophi.qeh.ox.ac.uk

https://en.wikipedia.org/wiki/Earnings_growth

https://en.wikipedia.org/wiki/Earnings_per_share

https://en.wikipedia.org/wiki/P/E_ratio


https://en.wikipedia.org/wiki/Peter_Lynch


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Operating income is a measurement that shows how much of a company's revenue will eventually become profit. Operating Income is a synonym for earnings before interest and taxes (EBIT) and is also referred to as "operating profit" or "recurring profit."

Operating income is calculated as:

OPERATING INCOME = GROSS INCOME - OPERATING EXPENSES - DEPRECIATION – AMORTIZATION

OPERATING INCOME GROWTH RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

INTREPRETATION

The net profit of the company in the year 2013 showed an increase in the net profit as compared to 2012. But after the year 2013 it subsequently started falling. During the year 2016 the company showed a decline of net profit. This is not a good indicator for the company.

EPS % GROWTH

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

Earnings per share (EPS) is Calculated as:

EPS

GROWTH RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

YEAR NET INCOME –DIVIDENDS ON PREFERRED STOCK

AVERAGE OUTSTANDING SHARES

EPS GROWTH RATIO

2012 1957.83 77.08 25.40

2013 1821.81 63.50 28.68

2014 1043.71 59.00 17.69

2015 -2422.90 31.34 -77.31

2016 -552.62 41.77 -13.23


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Bar Chart showing the Earnings per share (EPS) GROWTH RATIO OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

INTREPRETATION

Earnings per share is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio. The rate of EPS in the year 2012 to 2014 was good and positive.

During the year 2015 it was very low which showed recovery in the year 2016, though being negative.

FINDINGS & CONCLUSION

1. Current Ratio – In 2010 & 2011, the current ratio of the company was up to the standard but after that the ratio has gradually fallen below standard. This means that they had less of current assets than that of liability. This trend of ratios is not healthy for the organization as it cannot meet its current obligations.

2. Liquid Ratio – Last four years the company had a decent liquid ratio up to the standard which indicates that in those years the company can pay-off it current obligations without difficulty. But in the year 2014, the company had a hard time to pay-off its current obligations, which indicates that the liquidity position of the company is not sound.

3. Debt-Equity Ratio – Although there is no benchmark for all the business type and its interpretation depends upon financial policy of the firm and the nature of business. The standard ratio which might be applicable is 2:1. So, in this case the company has a low debt-equity ratio. This may result in risky capital structuring.

4. Operating Income Growth Ratio – Operating income is a measurement that shows how much of a company's revenue will eventually become profit. Operating Income is a synonym for earnings before interest and taxes (EBIT) and is also referred to as "operating profit" or "recurring profit."


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5. Net Profit Growth Ratio – Net profit is not an indicator of cash flows, since net profit incorporates a number of non-cash expenses, such as accrued expenses, amortization, and depreciation.

6. EPS Growth Ratio - Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

A critical assumption in the use of financial statements (aside from stewardship), is often made that the past will predict the future. For trends that have continued for many years this will usually be true, at least for the near future. Ratio analysis for a single company or within an industry using similar accounting methods will be the most fruitful way of using the data provided by financial statements. Thus it can be concluded that the overall financial position of ICICI PRUDENTIAL is satisfactory. Company has a good solvency position and a good check on debt financing. Company has sufficient fund for day to day activities and sufficient owner's capital to finance their fixed assets. Company has a higher gross and net profit which indicates that the company is making profit. It can grow a good upward direction trend in future years but has to make some improvement regarding current ratio & liquid ratio. Company has a very low current ratio and liquid ratio which indicates that the company cannot meet its current obligations and the liquidity position of the company is not sound. If the above problems are checked it is sure that the company will be in good position and will have a good future prospect. REFERANCES:

Modigliani, F., Miller, M., 1958. The cost of capital, corporation finance, and the theory of investment. American Economic Review 48, p-261–297.

Abdul,G .K. (2012). The Relationship of Capital Structure Decisions with Firm Performance: A Study of the Engineering Sector of Pakistan. International Journal of Accounting and Financial Reporting, 2(1), 2162-3082. Berger, A. N., & di Patti, B. (2006). Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry ,Vol. 30, pp. 1065- 1102

Elsevier Brigham, E. F. &Ehrhardt ,M. C. (2004.) Financial Management: Theory and Practice,11th Edition, South-Western College Publishers, New York Brigham,

E. and Gapenski, L. (1996).Financial Management. Dallas: The Dryden Press Ghosh et al.,( 2000), The pricing of seasoned equity offerings: evidence from REITs, Real Estate Economics, Vol. 28: P-363-384.

Gleason, K. C., L. K. Mathur, and I. Mathur, (2000). “The Interrelationship


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between Culture, Capital Structure, and Performance: Evidence from European Retailers”. Journal of Business Research, Vol. 50 (2), pp. 185– 91

Hadlock, C., James, C. (2002), Do banks provide financial slack?, Journal of Finance, Vol. 57: P-1383-420.

Harris M, and Raviv R.;1; (1991), The Theory of Capital Structure, Journal of Finance, Vol. 46 (1): P- 297-355.

Javed,B. &Akhtar,S. (2012)Interrelationships between Capital Structure and FinancialPerformance, Firm Size and Growth: Comparison of industrial sector in KSE: European Journal of Business and Management, Vol. 4(15), P-148-157.

Myers, S. C. (2001). Capital structure. Journal of Economic Perspective, Vol. 15(2), P-81-102.

T., M. Saron, and S. Titman.(1997). “Designing Capital Structure to Create Shareholder Value.” Journal of Applied Corporate Finance. Vol. 10(1).

Titman, S. 2007. A Dynamic Model of Optimal Capital Structure. Review of Finance, Vol. 11(3), P-401-451.

Bowen, R.M. and L.A. Daley and C.C. Huber, Jr., (1982), “Evidence on the Existence and Determinants of Inter-Industry Leverage Differences”, Financial Management, Vol.11, pp.10-20.

Bradley, M., G. Jarrell, and E.H. Kim, (1984), “On the Existence of an Optimal Capital Structure: Theory and Evidence,'' Journal of Finance, Vol. July 39, pp.857-878.

DeAngelo, H., and R.W. Masulis, (1980), “Optimal Capital Structure under Corporate and Personal taxation,” journal of financial economics, Vol.8, pp.3- 29.

Diamond, D.W., (1989), “Reputation Acquisition in Debt Markets”, Journal of Political Economy, Vol.97, pp. 828-862.

Hamada, R.S. (1972), “The Effect of Firm's Capital Structure on the Systematic Risk of Common Stocks,” Journal of finance, pp.435-452.

Harris, M. and A. Raviv, (1991), “The Theory of Capital Structure”, Journal of Finance, Vol.49, pp. 297-355.

Jenson, M.C., (1986) “Agency costs of free Cash Flow, Corporate Finance and Takeovers,” American Economic Review, Vol. 76, pp.323-339.

Jenson, M. and W. Meckling, (1976), “Theory of the Firm: Managerial Behaviour, Agency Cost, and Ownership Structure”, Journal of Financial Economics, Vol. 3, pp. 305-360.

Kale, K.M. and Walking, R.A (1996), “The Impact of Industry Classification on Financial Research”, Journal of Financial and


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Quantitative Analysis, Vol.31, pp 309-355.

Lev, B., “On the Association between operating leverage and Risk,” Journal of Financial and Quantitative Analysis, September 1974, pp.627-641.

Mandelker, G.N., and S.G. Rhee, (1984), “The Impact of the Degrees of Operating and Financial Leverage on Systematic Risk of Common Stock.,” Journal of Financial and Quantitative Analysis, Vol. March 19, pp.45-57.

Masulis, R.W., (1983), “The Impact of Capital Structure Change on Firm Value: Some Estimates,” Journal of Finance, Vol. March 38, pp107-126.

Rajan G. Raghuram and L. Zingales, (1998), “Financial Dependence and Growth”, American Economic Review, Vol. 88, pp. 559-586.

Sarkar, J. and S. Sarkar, (2000), “Liberalization, Financing Pattern and Corporate performance in India”, IGIDR.

Scott, D.F. Jr. and J.D. Martin, (1975), “Industry Influence on Financial Structure,” Financial Management (Spring), pp.67-73.

Schwartz, E. and J.R. Aronson, (1967), “ Some Surrogate Evidence in Support of the Concept of Optimal financial Structure,” Journal of Finance, Vol. 22, pp.10-18.

Deeomsak, R., Paudyal, K., Pescetto, G. (2004), ? The Determinants of Capital Structure: Evidence from the Asia Pacific Region, Journal of Multinational Financial Management, Vol. 14, P-387-405.


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A Comparative Analysis of Working of Mutual Funds in India


of Management



SITJM

Risha ChettriAssistant ProfessorDepartment of CommerceSalesian College, SiliguriE-mail Id : [email protected]

Sagar SharmaAssistant ProfessorDepartment of ManagementNorth Bengal St.Xaviers' College, JalpaiguriE-mail Id : [email protected]

Abstract:

Mutual fund business has been gaining a good market share in terms of pooling savings of investors and investing it in the capital market. It has been seen in the recent times that financial markets have proved to be more efficient when it comes to hedging against inflation and mutual funds being a part of financial markets provide a good substitute to conscious investors who are interested in favorable returns with moderate or low risk. Since the introduction of the concept of mutual funds by UTI in the year 1963, there has been a rapid growth in the business of mutual fund companies which is depicted in this paper through a comparative analysis of top 10 mutual fund companies operating in India which is carried out through Relative Performance Index, Risk-Return Analysis. The data is collected for a period of five years from 2012 to 2017 of each mutual fund company and the study reveals that all mutual fund companies selected have a positive return during this period.

Key Words: Mutual funds, risk factor, risk-return, investment, safety, security.


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Introduction

Savings and investment are the two most important determinants in the growth of the economy. Various measures have been taken to boost the saving habit of the people and channelize it into various investment avenues available in the country. One of the investment avenue available to the investors is mutual funds which is growing at a fast pace since it started its operations. A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. Investors invest their savings and in return receive units in terms of the unit value which is known as NAV (Net Asset Value). The biggest advantage of mutual fund to the investors is that it diversifies the risk associated with the investment by investing the pooled money into diversified portfolios. The history of mutual funds dates back in the year 1964 when the Unit Scheme was launched.

Evolution of Mutual Funds

The inception of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. The basic objective at that time was to attract the small investors or retail investors for investment and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India. The history of mutual fund industry in India can be better understood divided into following stages:

Stage 1. Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were delinked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the largest number of investors in any single investment scheme over the years.

UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. It launched ULIP in 1971, six more schemes between 1981-84, Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Master share (India's first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s. By the end of 1987, UTI's assets under management grew ten times to Rs 6700 crores.


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Stage II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India became the first non-UTI mutual fund in India. SBI Mutual Fund was later followed by Canbank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993, the assets under management of the industry increased seven times to Rs. 47,004 crores. However, UTI remained to be the leader with about 80% market share. Stage III. Emergence of Private Sector Funds - 1993-96

The permission given to private sector funds including foreign fund management companies (most of them entering through joint ventures with Indian promoters) to enter the mutual fund industry in 1993, provided a wide range of choice to investors and more competition in the industry. Private funds introduced innovative products, investment techniques and investor-servicing technology. By 1994-95, about 11 private sector funds had launched their schemes.

Stage IV. Growth and SEBI Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the year 1996. The mobilizations of funds and the number of players operating in the industry reached new heights as investors started showing more interest in mutual funds.

Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the investors in order to encourage them. SEBI (Mutual Funds) Regulations, 1996 was introduced by SEBI that set uniform standards for all mutual funds in India. The Union Budget in 1999 exempted all dividend incomes in the hands of investors from income tax. Various Investor Awareness Programs were launched during this stage, both by SEBI and AMFI, with an objective to educate investors and make them informed about the mutual fund industry.

In February 2003, the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an Act of Parliament. The primary objective behind this was to bring all mutual fund players on the same level. UTI was re-organized into two parts: 1. The Specified Undertaking, 2. The UTI Mutual Fund

Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past schemes (like US-64, Assured Return Schemes) are being gradually wound up. However, UTI Mutual Fund is still the largest player in


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the industry. In 1999, there was a significant growth in mobilizations of funds from investors and assets under management

Stage V. Growth and Consolidation - 2004 Onwards

The industry has also witnessed several mergers and acquisitions recently, examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutual fund players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 29 funds as at the end of March 2006. This is a continuing stage of growth of the industry through consolidation and entry of new international and private sector players.

(Source: http://www.appuonline.com/mf/knowledge/industry.html)

Literature Review:

Mutual funds have already attracted the attention of worldwide investors and academicians but most of the existing research available is on either accelerating the return on funds and investor's objective. Few studies are available that focus on the comparison of various mutual funds operating in India with benchmark fund schemes. Some of the available work are the following:

Treynor (1965) and Sharpe (1966) in their research paper have provided the conceptual framework of relative measure of performance of equity mutual funds while Treynor used systematic risk. Sharpe used total risk to evaluate the mutual fund portfolio performance higher value of Treynor's index indicates better performance of portfolio and vice versa. The Treynor's measure of portfolio performance is relative measure that ranks the funds in terms of risk and return. The index is also termed as reward to volatility ratio.Rao D.N (2006) studied the financial performance of select open-ended equity mutual fund schemes for the period 1st April 20005-31st March 2006 pertaining the hypothesis whether the differences in performance are


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statistically significant. The analysis indicated that growth plans have generated higher returns than that of dividend plans but at a higher risk studied classified the 419 open—ended equity mutual fund schemes into six distinct investment styles.

Boudreaux and Suzanne (2007) have conducted a study to examine the risk adjusted returns of international mutual funds for the period of 2000-2006. For their study a sample of ten portfolios of international mutual fund was taken and risk-adjusted performance was calculated by using Sharpe (1966)'s Index of Reward to variability ratio. US market of mutual funds was taken as the benchmark. The results showed that the performance of nine out of ten of the international mutual funds was higher than the U.S. market. Those portfolios which contained only U.S. stock mutual funds underperformed on a risk-adjusted the funds that contained all international mutual funds. The authors concluded that investors may not fully take advantage of possible portfolio risk reduction and higher returns if international mutual funds excluded.

Gupta Shefali, Shrivastava S.K and Bhatnagar K. Vinod (2012) in their research paper on comparative study on performance evaluation of sectoral mutual fund conducted a study on five sectors which included FMGC and Healthcare, Banking and Finance, Technology, Infrastructure and Energy and Power Sector. The result of performance measures suggest that most of the mutual fund have given positive return during 2008-2012.

Vyas Ravi (2012) tried to highlight an investors' perception and expectation and disclose the incognito parameters that are ascribed for their discontentment. It was found that mutual funds were not that much known to investors and they still rely upon bank and post office deposits, most of the investor used to invest in mutual funds for not more than 3 years and they used to quit from the fund which were not giving desired results.

Ranjan Sharad and Gupta Shailza (2014) evaluated the performance appraisal of mutual funds operating in India by taking into consideration five mutual fund companies selected randomly during the period of 2010-2014. The result showed that out of the five companies, HDFC Equity Fund was the best performer and gave positive results.

Ahmed Rais and Nomani Abuzar (2014) in their paper made an attempt to evaluate the performance of equity mutual fund ranked 1 by CRISIL and compared the annualized return with their category average and benchmark. Three schemes have been taken for this purpose Large Cap, Small & Mid Cap and Diversified Mutual Fund which have been analyzed using different financial and statistical tools. The study revealed that in in most of the cases the schemes have outperformed in comparison to the category average and benchmark return.

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Asraf and Sharma (2014) in their research paper titled “Performance Evaluation of Indian Equity Mutual Funds against Established Benchmarks Index” made an attempt to analyze the performance of equity mutual funds against risk-free rate and benchmarks return over the five years from April 2007-March 2012. The sample consists of 10 growth oriented open-ended equity mutual fund scheme belonging to 5 public and 2 private mutual fund companies. The risk return analysis revealed that out of 10 schemes 3 have underperformed the market.

Rajpara R. Yashasvi and Nenwani Jayramdas Pinkiben (2017) conducted a study on performance evaluation of selected five debt mutual funds during the period of study from 2012-2017 which revealed that due to various advantages of debt mutual funds people are gaining interest to invest in debt mutual funds as it is figuring out regular income to the investors with minimum risks.

Bijan Roy, ET. al, conducted an empirical study on conditional performance of Indian mutual funds. In this paper a technique called conditional performance evaluation on a sample of 89 Indian mutual fund schemes. The results suggest that the use of conditioning lagged information variables improves the performance of mutual schemes, causing alphas to shift towards right and reducing the number of negative timing coefficients.

Objectives of the study:

The main reason behind studying this topic are:

· To examine the performance of selected mutual funds.

· To predict the trends for investment of selected mutual funds for future.

Research Methodology:

Secondary data is taken as a basis of analysis in this research. Top ten asset management companies is selected as per AUM as on March, 2017. Daily data about the closing Net Asset Value of the selected schemes has been collected from the websites. The most popular and widely tracked NSE SENSEX is used as the proxy for the market. The reference period for the data is taken from March 2012 to March 2017.


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Data Analysis:

Table 1. Summary of NAV, Return and AUM of 10 Diversified Equity

(Source: )

Table 2. Summary of NAV ranging from 1 month to five years of the ten Diversified Equity Scheme

(Source: www.moneycontrol.com)

www.moneycontrol.com

Diversified Equity

CRISIL Rank

NAV (Rs./Unit)

1 yr Return AUM (in cr.)(2017)

ABSL India GenNext (G)

Rank 1

76.00

16.0 559.86

ABSL India GenNext –Direct (G)

Rank 1

79.54

17.4 77.13

Motilal Focused

Multicap 35-DP (G)

Rank 1

26.75

26.5 3269.73

Motilal Focused Multicap 35-RP (G)

Rank 1

25.86

25.3 4970.70

Principal Emerging Bluechip (G)

Rank 1 105.80 25.6 1020.86

Principal Emer-Bluechip-Direct (G)

Rank 1 110.12 26.9 160.62

Sundaram Rural India Fund (G)

Rank 1 41.68 19.5 1424.95

Sundaram Rural India-Direct (G)

Rank 1 42.80 20.5 108.43

Tata Equity P/E Fund-Direct (G)

Rank 1 139.65 29.7 122.36

Tata Equity P/E Fund

Rank 1 135.42 28.6 1447.59

Scheme Name Asset (Rs. Cr)

NAV1

month %

3 month

%

6 month %

1 year % 3 year % 5 year %

ABSL India GenNext (G)

449.4

-1.1

4.5

12.4 17.4 20.3 21.1

ABSL India GenNext –Direct (G)

55.0

-1.0

4.8

13.1 18.9 26.9 -

Motilal Focused Multicap 35-DP (G)

2090.7

-1.5

6.7

12.8 28.5 27.1 -

Motilal Focused Multicap 35-RP (G)

3144.1

-1.6

6.5

12.3 27.3 25.9 -

Principal Emerging Bluechip (G)

695.8 2.3 9.4 16.6 27.5 24.9 27.8

Principal Emer-Bluechip-Direct (G)

81.7 2.4 9.7 17.2 28.8 26.1 -

Sundaram Rural India Fund (G)

679.9 -0.3 3.9 12.7 19.4 26.3 21.1

Sundaram Rural India-Direct (G)

62.8 -0.2 4.1 13.2 20.4 27.2 -

Tata Equity P/E Fund-Direct (G)

38.1 0.4 8.3 13.9 30.4 27.6 -

Tata Equity P/E Fund (G)

781.1 0.4 8.1 13.4 29.3 26.6 23.1


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Table 3. Summary of Return, Risk, Beta and R Square of the ten Diversified Equity Scheme

Inference:

Table 3 represents the results of return, risk, beta and coefficient of determination of selected schemes with benchmark return and risk. It is clear from the table that 5 out of 10 sample mutual fund schemes had outperformed the benchmark return. The maximum return was from Motilal Focused Multicap and the minimum return was from Principal Emerging Bluechip. In the context of risk it is seen that only 2 schemes have less risk than market risk while rest 8 have more risk than market risk.

In the context of beta, it is observed that out of 10 schemes only 2 schemes

SL.No. Schemes Scheme Return

Scheme Risk Beta R Square

1. ABSL India GenNext (G)

0.0162 0.0894 1.021 0.897

2. ABSL India GenNext –Direct (G)

0.0178 0.0683 0.729 0.885

3. Motilal Focused Multicap 35-DP (G)

0.0215 0.0903 0.999 0.901

4. Motilal Focused Multicap 35-RP (G)

0.0159 0.0852 0.980 0.910

5. Principal Emerging Bluechip (G)

0.0123 0.0836 0.942 0.873

6. Principal Emer-Bluechip-Direct (G)

0.0187 0.0879 0.988 0.870

7. Sundaram Rural India Fund (G)

0.0184 0.0928 0.979 0.875

8. Sundaram Rural India-Direct (G)

0.0154 0.0963 1.060 0.845

9. Tata Equity P/E Fund-Direct (G)

0.0210 0.0885 0.996 0.867

10. Tata Equity P/E Fund

0.0152 0.0897 0.965 0.789

Average 0.0172 0.0846 0.935 0.845

BSE-SENSEX index (Benchmark)

0.0186 0.0841 1.00


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have registered a beta value greater than one indicating a risky category. R square measure the level of diversification. It is also found from the table that only Motilal Focused Multicap scheme have pereformed well diversification.

Limitation of the study:

The limitations of the study are here under:

1. The study deals with only selected equity schemes of sampled fund houses operating in India.

2. The study is restricted to five years starting from April 2012 to evaluate the performance of the selected schemes of selected schemes of selected mutual funds but not their inception.

3. The study is confine only to Indian mutual fund industry.

Conclusion:

The present paper investigates the performance of 10 diversified schemes for the period from April 2012 to March 2017 of transition economy. Monthly NAV of different schemes have been used to calculate the returns from the fund schemes. BSE-sensex has been used for market portfolio. Results of the study showed that that 05 out of 10 (48.27 percent) sample mutual fund schemes had outperformed the benchmark return.

References:

Debasish, Sathya Swaroop (2009). Investigating Performance of Equity-based Mutual Fund Schemes in Indian Scenario. KCA Journal of Business Management.

Pandey I M (2005), “Financial Management”, Vikas publication house private Ltd. 9th edition. pp. 427, 428

Bhole L.M. (2005), “Financial Institutions, Instruments and Markets”, Tata McGraw hill Companies. 4th edition. Chapter 12 pp. 12.2, 12.5, 12.7


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Rural Entrepreneurship - Problem and Prospects: An Empirical Analysis


of Management



SITJM

Dr. Sidhartha Sankar Laha Assistant ProfessorDepartment of EconomicsTufanganj CollegeE-mail Id :[email protected]

Paramita ChoudhuryAssistant ProfessorDepartment of Business Administration Siliguri Institute of TechnologyE-mail Id :[email protected]

Abstract:Rural entrepreneurs play a vital role in the overall economic development of the country. The growth and development of rural entrepreneurship facilitate self employment, results in wider dispersal of economic and industrial activities and helps in the maximum utilization of locally available raw materials and labour. It is fact that the majority of rural entrepreneurs are facing several problems due to lack of basic amenities in rural areas like, lack of education, financial problems, marketing hurdles, management and human resource problems, insufficient technical and conceptual ability etc. Over 70% percent of India's population lives in villages areas and majority of people depend on agriculture for their livelihood. The pace of industrialization in West Bengal is slow and tardy. Thus, there is need to strengthen employment opportunities in the rural areas by promoting rural entrepreneurship. The present descriptive study is made in the North Bengal districts of West Bengal based on data collected from 288 rural entrepreneurs through structured schedule. The study analyses the impact of socio-economic background on growth of rural entrepreneurship. It was found that age, gender, qualification; annual income etc of rural entrepreneurs had a direct impact on the growth of rural entrepreneurship. The findings of the study suggest that there is a need for concerted efforts by the government and rural masses to enhance the growth of rural enterprises.

Keywords: Entrepreneurship, Formation of Capital, Balanced Regional Development, Socio-economic characteristics


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I. Introduction

Rural entrepreneurship is now-a-days a major opportunity for the people who migrate from rural areas or semi - urban areas to Urban areas. India is the second most populous country in the world and has about 73% of its population in villages. But, in recent years, the percentage of population migrating to urban areas has increased considerably. Various social, economic, political and ecological problems in rural areas in developing countries like India create challenges in employment and cause increasing migration towards cities, decreasing agricultural production and increasing food shortage.

The rural population constitutes a major segment in India. The livelihood strategies of this vast segment depend primarily on agriculture and allied activities. Growth in this agricultural sector has shown a declining trend during the last one decade. This has made a huge impact on the domestic production, employment, etc. These problems can be tackled, to a certain extent, by developing entrepreneurial attitudes in Rural India.Entrepreneurs are playing a very important role in the development of the economy. They face various problems in running their business. Some of the major problems faced by the rural entrepreneurs are:

i. Financial Problems (Paucity of Funds, Lack of Infrastructural Facilities, less risk bearing capacity)

ii. Marketing Problems (competition from large scale organizations, intermediaries etc.)

iii. Management Problems (Lack of Knowledge of I.T, insufficient information on Legal Formalities, Lack of Technical Knowledge)

iv. Human Resources Problems (Lack of skilled Workers, Negative Attitude of employees towards work etc.,)

The majority of rural entrepreneurs are facing several problems due to lack of basic amenities in rural areas like, lack of education, financial problems, marketing hurdles, management and human resource problems, insufficient technical and conceptual ability etc. discourage rural entrepreneurs to establish industries in the rural areas. The present study focuses on the major problems faced by rural entrepreneurs. Special focus has been on institutional problems (lack of Govt. support and incentives, long and complicated procedures to avail Institutional help, lack of cooperation and coordination among different development agencies like eg. poor working of various industrial agencies such as DICs, SISIs, lack of training to workers, insufficient publicity for imparting training, training institutes give less attention to objectives, identification and proper selection of entrepreneur, trainers do not belong to relevant field, lack of communication between field Functionaries and entrepreneurs), Financial problems (lack of


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sufficient working capital, problems in procuring financial loans from different agencies, inadequate amount advanced through financing agencies, lack of funds for publicity and advertisement of the product, high rate of interest, difficulty in recovering receivables, problem of collaterals, high transaction cost) and lack of other basic amenities, i.e. availability of electricity, water supply, transport facilities and energy requirements etc.

II. Literature Review

The study of Ajit Kanitkar (1994) focuses on successful entrepreneurs and owners of micro-enterprises in rural India. Based on the case studies of 86 village-based entrepreneurs drawn from different regions of India, the article examines that socio-economic profile of the entrepreneurs, their motivation for shifting from an agriculture-based occupation to a non-farm activity, their approach to raising resources for their enterprises and the factors that facilitated entry of the village based entrepreneurs in to a business activity.

Mali (1998) in his study has observed that small and medium enterprises (SMEs) and micro enterprises have to face increasing competition in the present scenario of globalization, they have to specifically improve themselves in the fields of management, Marketing, product diversification, infrastructural development, technological up gradation. Moreover, new small and medium enterprises may have to move from slow growth area to the high growth area and they have to form strategic alliance with entrepreneurs of neighboring countries. Data bank on industries to guide the prospective entrepreneurs including investors from abroad is also needed.

Nicola Mecchari, and Gianluigi Pelloni (2006) analysed the results emerging from a questionnaire submitted to a sample of 123 rural entrepreneurs and business in a mountainous area of central Italy. In particular, they test for six hypotheses concerning the correlation between different factors, reflecting entrepreneur and business specific characteristics, and the adoption of instruments of institutional assistance. Their study also examines and proposes potential polices for fostering entrepreneurship and the development of the rural region under study.

Srivastava and Syngkon (2008) study makes an in depth analysis of the development of small scale industrial (SSI) sector in the rural areas of the states North Eastern Region of India. The study also focuses specifically on the role and profile of entrepreneurs. The findings reveal that the manufacturing, assembling, processing, activity is the dominant group among the various SSIs activities in the North Eastern states in rural and urban areas. It is observed that in most of the North Eastern states, concentration and growth of SSI activities is higher in rural areas than in urban areas. The study also brings to light the rising number of women and


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tribal entrepreneurs in the region.

Barua and Mali (2011), in their study, found that the micro, small and medium enterprises in West Bengal had registered an average growth of 20.63% per annum from 1987-88 to 2006-07. This was accompanied by an average annual growth of 45.3% in investment and 89.5% in output. However, there was an element of upward bias in estimates of growth in investment and output as price rise over the years had significantly inflated their values. The whole study was based on secondary data. It can be concluded from the study that entrepreneurial performance indicated by the output is largely affected by the quantum of investment rather than the level of employment.

Govindappa and Geetha (2011), in their study on Soico- economic Background and problems of entrepreneurs in Industrial estate, A case study of Industrial estate in Davangere District of Karnataka studied found that participation of women in entrepreneurial activities was nil, Majority of entrepreneurs were from nuclear family and were below 40 years of age. Main motivating factors were family environment, practical experience gained in the field and 53.3 percent participated in Entrepreneurship Development Programme (EDP). Entrepreneurs faced different kinds of problems like, problem of raw materials, problem of marketing, problem of power, problem of labour, problem of finance, problem of technical and management assistance in operating their units.

Laxman and Ambana (2011), in their study on Implementation and impact of Prime Minister Employment generated programme (PMEGP)scheme in Hyderabad Karnataka Region found that the success of the Government sponsored schemes depends to a great extent on the socio-economic conditions in which the beneficiaries live and perform their economic activities. The survey was conducted to know about their social like, sex, age, education and the economic factors like loan, income, repayment, employment generation, problems they encountered and impact of the bank loan. The scientific evaluation of PMEGP indicates that the scheme is economically viable. In the backward districts of the Hyderabad-Karnataka region, the scheme has yielded positive results. Its performance may be still better in economically advanced regions. In view of the growing unemployment in the country, such viable schemes are the need of the time.Jyoti kumar and Lalhunthara (2012), in their study on socio-economic background of Micro entrepreneurs in Aizawl district, Mizoram found that Education, experience, age and family play an important role in shaping the entrepreneurial ambition of the aspirant. It was found that nearly one-fourth of entrepreneurs were females. Their study also reveals that entrepreneurs were engaged in different lines of business activities ranging from tailoring to food processing, involving complex technologies and different skills set.Choudhary K. (2009) , Anjali Ghosh, (2011) , Kalpana P. Nandanwar (


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2011), and Venkatesh Babu, (2012) opinioned that rural entrepreneurship should not only set up enterprises in rural areas but should be also using rural produce as raw material and employing rural people in their production processes. Rural entrepreneurship is, in essence, that entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources. In other words, this means that finished products are produced in rural areas out of resources obtained in rural areas by largely rural people.

III. Need of the Study

Rural entrepreneurship implies entrepreneurship emerging in rural areas. In other words establishing industries in rural areas refers to rural entrepreneurship. This means rural entrepreneurship is synonymous with rural industrialization. Many examples of successful rural entrepreneurship can already be found in literature. Diversification into non-agricultural uses of available resources such as catering for tourists, blacksmithing, carpentry, spinning, etc. as well as diversification into activities other than those solely related to agricultural usage, for example, the use of resources other than land such as water, woodlands, buildings, available skills and local features, all fit into rural entrepreneurship. A turnaround is possible in the above trend if employment opportunities are made available in rural areas along with basis amenities of life. The real solution to India's economic problem is not mass production but production by masses as was suggested by Mahatma Gandhi. This study attempts to sketch the role of rural enterprises in transforming the lives of the rural folks in the Jalpaiguri and Cooch Behar districts North Bengal region.

IV. Roles of Rural Entrepreneurs in Economic Development

The entrepreneurs with their ability to scan, analyze and identify opportunities in the environment transform them into business proposition through creation of economic entities. They by channelizing the resources from less productive to move productive use crate wealth. Through efficient and effective utilization of national resources, they act as catalysts for economic development and agents of social transformation and change. According to Joseph Schumpeter, the rate of economic progress of a nation depends upon its rate of innovation which is turn depends on rate of increase in the entrepreneurial talent in the population. According to Meir and Baldwin, development does not occur spontaneously as a natural consequence when economic conditions in some sense are right. A catalyst is needed which results in entrepreneurial activity to a considerable extent. The diversity of activities that characterizes rich countries can be attributed to the supply of entrepreneurs. They play a vital role for the economic development of a country in the following ways.


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Formation of Capital: Entrepreneurs by placing profitable business proposition attract investment to ensure private participation in the industrialization process. The otherwise idle savings are channelized for investment in business ventures which in turn provides return. Again the savings are invested giving a multiplier effect to the process of capital formation.

Balanced Regional Development: The entrepreneurs always look for opportunities in the environment. They capitalize on the opportunities of governmental concessions, subsidies and facilities to set up their enterprises in undeveloped areas. The setting up of still plant at Tata nagar, Reliance Petrochemicals at Jamnagar (Gujarat) have resulted in the development of Good Township and peripheral regional development. Thus entrepreneurs reduce the imbalances and disparities in development among regions.

General Employment: This is the real charm of being an entrepreneur. They are not the job seekers but job creators and job providers. With the globalization process the government jobs are shrinking leaving many unemployed. In the circumstances, the entrepreneurs and their enterprises are the only hope and source of direct and indirect employment generation. Employment is generated directly by the requirement of the large enterprises and indirectly by ancilliariation and consequential development activities.

Improvement in Standard of Living: Entrepreneurial initiative through employment generation leads to increase in income and purchasing power which is spent on consumption expenditure. Increased demand for goods and services boost up industrial activity. Large scale production will result in economies of scale and low cost of production. Modern concept of marketing involves creating a demand and then filling it. New innovative and varying quality products at most competitive prices making common man?s life smoother, easier and comfortable are the contribution of entrepreneurial initiative.

Increase in per Capita Income: Entrepreneurs convert the latent and idle resources like land, labour and capital into goods and services resulting in increase in the national income and wealth of a nation. The increase in national income is the indication of increase in net national product and per capita income of the country.

National Self-reliance: Entrepreneurs are the corner stores of national self-reliance. They help to manufacture indigenous substitutes to imported products which reduce the dependence on foreign countries. There is also a possibility of exporting goods and services to earn foreign exchange for the country. Hence, the import substitution and export promotion ensure economic independence and the country becomes self-reliance.


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Planned Production: Entrepreneurs are considered as economic agents since they unite all means of production. All the factors of production i.e., land, labour, Capital and enterprise are brought together to get the desired production. This will help to make use all the factors of production with proper judgment, perseverance and knowledge of the world of business. The least combination of factors is possible avoiding unnecessary wastages of resources.

Equitable Distribution Economic Power: The modern world is dominated by economic power. Economic power is the natural outcome of industrial and business activity. Industrial development may lead to concentration of economic power in few hands which results in the growth of monopolies. The increasing number of entrepreneurs helps in dispersal of economic power into the hands of many efficient managers of new enterprises. Hence setting up of a large number of enterprises helps in weakening the evil effects of monopolies. Thus, the entrepreneurs are key to the creation of new enterprises that energies the economy and rejuvenate the established enterprises that make up the economic structure.

V. Objectives and Hypothesis of the Study

The main objective of this study is to examine the socio-economic characteristics of rural entrepreneurs in the North Bengal Districts of West Bengal. The detailed objectives to the study are as follows:

i. To enquire into the socio-economic background of rural entrepreneurs in North Bengal districts.

ii. To examine the problems of rural enterprises related to socio-economic standing in the region.

iii. To give appropriate prospects to overcome the problems of rural enterprises in the selected districts.

Hypothesis:

H0: The main hypothesis of the study is that Socio- economic factors are not supportive towards the growth of rural entrepreneurship.

VI. Methodology

This section describes the methodology adopted which includes the sampling technique, the collection of data and the tools of analysis.

Sampling Technique

Keeping the above objective in mind, size of sample was determined by applying Krejcie and Morgan's formula of “Determining Sample Size for Research Activities” from a total population (N=1150).The formula is


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S = X2 NP (1- P) ÷ d2 (N - 1) + X2 P (1- P)

S = required sample size.

X2 = the table value of chi-square for 1 degree of freedom at the desired confidence level (3.841).

N = the population size.

P = the population proportion (assumed to be. 50 since this would provide the maximum Sample size).

d = the degree of accuracy expressed as a proportion (.05).

Accordingly the number of sample size was found to be 288. These 288 samples were drawn considering 14 blocks of Jalpaiguri and Cooch Behar districts as a whole population by the simple random sampling method applying the random number table. The sample has been selected on the basis of Tippet's random number table and fortunately from all blocks more or less equal number of sample has generated.

Collection of data: The present study is based on primary as well as secondary data.

Primary Data

Primary data has been collected through interview schedule after considering all the relevant aspects which were gleaned out by the researcher on the basis of review of literature. Further, the researcher had preliminary discussion with the officials of the District industries centre and few entrepreneurs registered in District Industries Centre of the sample districts.

Secondary Data

The secondary data were collected from published, unpublished reports, handbooks, action plan, pamphlets of Director of Industries and commerce, West Bengal, District Industries centres(DICs), Indian Institute of Entrepreneurship, West Bengal Financial Corporation, journals, books, magazines and newspapers. For this purpose, researcher visited many libraries. Some important information/knowledge was also gathered from internet.

Tools of Analysis

Simple percentage analysis has been administered to find out the demographic profile of rural entrepreneurs and to draw inferences. Chi-


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square with cross tab technique by SPSS has been used to test the hypothesis

VII. Results and Analysis

The present socio-economic status of rural entrepreneur includes age group; marital status, family structure, number of family members, educational qualification, annual income, household condition etc were analyzed and presented below.

Table- 1: Age Group of Rural Entrepreneur

Source: Field Survey

Parameter –I: Age of Rural Entrepreneurs

It was considered desirable to have an insight in to the age of rural entrepreneurs. The capabilities of a person in doing various jobs vary at different stages as the confidence level, physical endurance, perceptions at a particular time will vary with the growing of age and with the passage of time, the respondents were classified on the basis of their age at the time of survey to know which age group had participated more vigorously in rural entrepreneurial activities. Table-1 depicts the present age of rural entrepreneurs surveyed in selected districts of West Bengal. It was found that 41 percent of rural entrepreneurs were in the age group of 31-40 years. This was followed by 29.5 percent of the rural entrepreneurs in the age group of 41-50 years. The percentage of rural entrepreneurs in the age group of 20-30 was 19.4 percent and 10.1 percent in the age group of above 50 years.

A sub-hypothesis formed to show the association between age and type of activities. Since the value of chi- square (7.110) at 3 degrees of freedom is less than table value (7.81), it can be concluded that there is no association between age and activities of the rural entrepreneurs.

It indicates that by and large entrepreneurs of different age group have different activities.

Parameter –II: Gender of Rural Entrepreneurs

Information about the gender of the respondents was collected to know the proportions of male and female entrepreneurs participate in entrepreneurial activities in the districts. The data is shown in Table-2, 73.3 percent of the

Age group in years Manufacturing Service TotalNo

Percentage

No

Percentage No Percentage

20-30

43

22.1

13

14.0 56 19.431-40

75

38.5

43

46.2 118 41.041-50

57

29.2

28

30.1 85 29.550 & above 20 10.2 9 9.7 29 10.1

195 100.00 88 100.00 288 100.00Value of chi-square 7.110Table value at 0.05 percent level 7.81


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rural entrepreneur was males, while 26.7 percent of the rural entrepreneurs were females. Sector wise analysis revealed that 78.5 percent of rural entrepreneurs in manufacturing sector were males followed by 62.4 percent in service Sector.

Table-2: Gender Distribution of the Rural Entrepreneur


Parameter –III: Education Level of Rural Entrepreneurs

The formal education not only helps in gaining the required knowledge for a job which demands non- traditional skills but also imparts knowledge about the different occupational opportunities. The communication skills, technological innovations, production efficiency and marketing capability of an entrepreneur mainly depend on his/her educational level (Meher and Sahoo 2008). If one rejects the notion that investment in education must be productive, then they should also be prepared to reject the goal of rapid economic progress (Frederic and Myers 1968).The lack of education has proved an inhibitor to the progress of entrepreneurs and has compounded their problems (Ramswamy and Jyoti Kumar 2010).The information about the educational qualification of respondent's was collected and the responses were presented in Table-3. In the survey, 30.9 percent of the rural entrepreneur possessed Matric level education, 28.5 percent possessed below Matric level education. 27.1 percent respondents were higher secondary level education, 13.5 percent have graduates.

The data reveals that the association between the educational levels of the rural entrepreneurs is partially statistically significant among manufacturing and service.

Table-3: Educational Level of the Rural Entrepreneur


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Gender Manufacturing Service TotalNo

Percentage

No


Male

153

78.5

58

62.4 211 73.3Female 42 21.5 35 37.6 77 26.7Total 195 100.00 93 100.00 288 100.00

Education Level Manufacturing Service TotalNo

Percentage

No


Below Matric

50

25.6

32

34.4 82 28.5

Matric

63

32.3

26

28.0 89 30.9Higher Secondary

50

25.6

28

30.1 78 27.1Graduate and others

32

16.4

7

7.5 39 13.5Total 195 100.00 93 100.00 288 100.00

Value of chi-square 5.130Table value at 0.05 percent

level6.145


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Parameter –IV: Marital Status of the Rural Entrepreneur

The marital status of the rural entrepreneurs in different line of activities in Jalpaiguri and Cooch Behar districts ware ascertained and is presented in Table-4. A large majority of the respondents constituting 90.6 percent were married and the remaining 9.4 percent were unmarried (5.6 percent). During the course of field visit some of the women rural entrepreneur opined to the researcher that an unmarried women rural entrepreneur faces lot of difficulty in finding a prospective groom for marriage. As a result getting the daughter married becomes the first priority for the parents. Moreover, the parent prefers spending money on the marriage of their daughter instead of investing on the establishment of their enterprise. It is clear that majority of the respondents were carrying out the entrepreneurial activity as a means of their livelihood.

Table-4: Marital Status of the Rural Entrepreneur


Parameter –V: Caste of the Rural Entrepreneur

Caste wise classification of sample entrepreneurs is given in Table-5. The table reveals that 32.6 percent entrepreneurs belonged to the general category, followed by 31.6 percent belonging to other backward class, 19.8 percent scheduled caste, 16 percent schedule tribe. The table emphasizes that the majority of the rural entrepreneur were from general category and other backward category. This could be due to the financial soundness of the general and other backward caste and the better soico-economic development of these two types of community. The weaker section and depressed class people are less involved in business.

Table-5: Caste wise Classification of the Respondents


Marital status

Manufacturing Service Total

No

Percentage

No


Married

184

94.4

77

82.8 261 90.6

Unmarried 11 5.6 16 17.2 27 9.4

Total 195 100.00 93 100.00 288 100.00

Caste Manufacturing Service TotalNo.

percentage

No

percentage No percentage

ST

34

17.4

12

12.9

46 16.0SC

39

20.0

18

19.4

57 19.8OBC 57 29.2 34 36.6 91 31.6General 65 33.3 29 31.2 94 32.6Total 195 100.00 93 100.00 288 100.00


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Parameter –VI: Family Structure

One of the important factors influencing the success of an entrepreneur is the support from his family, which in turn depends upon the structure and economic status of the family. Membership of a resourceful family belonging to a resourceful community facilitates entrepreneurship. But industrialization and modernization has slowly disintegrated the joint family system giving way to the independent family system. The increase in needs, aspirations, ambitions, and expectations made the people to live independently to achieve their own needs. Another interesting parameter was, whether the entrepreneurs belonged to nuclear or joint family.

The data in this connection has been collected and shown in Table-6. It was found that 69.1. Percent of the rural entrepreneur belonged to nuclear family system and the remaining 30.9 percent belonged to joint families. The value of chi-square was found to be insignificant at 0.05 levels.

This shows that there is no association between the family structure and nature of the firm.

Table-6: Family Structure of the Rural Entrepreneur


Parameter –VII: Ethnic Origins

The religion of rural entrepreneurs is not considered to have any bearing on his/her entrepreneurial abilities, but religious customs might influence his/her performance in pursuing entrepreneurial activities. Religions of the rural entrepreneur were shown in Table-7. Literature highlights that religion and culture play a major role in the lives of many Indian businessmen. When an entrepreneur undertakes an enterprise, he is more often influenced by some religious thoughts and a person loyal to particular religious feelings not ready to comprise the religion with the enterprise.

Table -7: Religions of Rural Entrepreneur


Type Manufacturing Service TotalNo

Percentage

No


Joint

58

29.7

31

33.3 89 30.9Nuclear

137

70.3

62

66.7 199 69.1Total 195 100.00 93 100.00 288 100.00

Chi-square value 0.380Table value at 0.05 level 5.99

Religion Manufacturing Service TotalNo.

percentage

No


Hindu

168

86.2

88

94.2 256 88.9Muslim

17

8.7

3

3.2 20 6.9Christian 2 1 - - 2 0.7

Others 8 4.1 2 2.2 10 3.5Totals 195 100.00 93 100.00 288 100.00


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The analysis shows that Hindus were 88.9 percent followed by 6.9 percent muslins and 3.5 percent others (includes Sikh, Jain etc.).It clearly showed that Hindu entrepreneurs are more in number because they are a majority community and they are socially more acceptable socially as entrepreneurs in Jalpaiguri and Cooch Behar districts.

Parameter –VIII: Nature of Business Organization

Table-8 shows the different forms of business organization chosen by the respondents. Sole proprietorship was the preferred for of business organization in the district under reference. 87.8 percent of the respondents opted for it followed by partnership that constituted 12.8 percent. Together these two types accounted for 100 percent. The types of organizations set up for micro and small enterprises were mostly proprietary and partnership accounted for few. In proprietary type of organizations, the owner-manager was the sole proprietor. Therefore the owner-manager in such organization usually had to attend to the entire managerial and routine operational tasks single handedly.

Table-8: Nature of Business Organization


Parameter –VIII: Economic Standing

Finance is the life giving element in the process of economic growth. Financial soundness of the rural entrepreneurs and their elders is supposed to stimulate the growth of entrepreneurship. The financial strength creates a sense of security against fear of failure. In the present study, it was intended to enquire in to the financial strength of past generation. While financial strength of the past generation stimulated the desire for entrepreneurship, the financial soundness of the present generation encourages the velocity of the entrepreneurship. The magnitude of entrepreneurs' activity also depends on the father's economic status. A study in this regard reveals the economic background inherited by the rural entrepreneurs. Some of them may show initiative in consolidating and building up on the base provided by their fathers and some may start from scratch and thus become self made entrepreneurs.

As shown in Table-9a that 31.9 percent of the entrepreneur's whose father's had an annual income below Rs.25000 while 42 percent had an annual income between Rs.25000 to Rs 50000. 17.4 percent had an annual income between 50000 to 75000. 4.9 percent had an annual income between Rs

Nature Manufacturing Service TotalNo.

percentage

No


Sole proprietorship

170

87.2

83

89.2 253 87.8Partnership 25 12.8 10 10.8 35 12.2

Totals 195 100.00 93 100.00 288 100.00


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75000 to 100000. Only 3.8 percent had an annual income above Rs.100000.

Table-9a: Annual Income of the Rural Entrepreneur's Father


The Economic background of the rural entrepreneurs is viewed on the basis of annual earnings of the entrepreneurs from various sources. The Table-9b indicates that 92 rural entrepreneurs (31.9 percent) had an annual income in between Rs.1,00,000-1,50,000 forming the highest group followed by 76 entrepreneurs (26.4 percent) with annual income in between Rs.1,50,001- Rs.2,00,000. 42 rural entrepreneurs (14.6 percent) had an annual income in between Rs.2,00,001-2,50,000. 38 rural entrepreneurs (13.2 percent) had an annual income in between Rs.50,001-Rs.1,00,000. 23 rural entrepreneurs (8 percent) had an annual income up to Rs.50,000. 17 rural entrepreneurs (5.9 percent) had an annual income above Rs.2,50,000. The above trend exhibits that economic status has been rising from generation to generation. This rise leads to increased rural entrepreneurial activity breeding new class of entrepreneurs.

Table-9b: Annual Income of the Rural Entrepreneur


Parameter –IX: Household Condition of the Rural Entrepreneur

Housing pattern is one of the most important indicators used to assess the economic well being of any community. It is one of the barometers to judge the Soico-economic condition of the society. Table-10 reveals that majority of the surveyed rural entrepreneurs i.e., 48 percent lived in pucca houses while 21 percent stayed in semi-pucca houses and 31 percent lived in kutcha houses. Regarding electricity 82 percent have electricity in their houses and 63 percent have TV Radios. Regarding Phone/Mobile, 86 Percent possess phone/ mobile. As more than 82 percent avail electricity and 69 percent rural entrepreneurs are living in pucca/semi-pucca houses, their economic condition may be considered as above average in the districts.

Annual Income Manufacturing Service TotalNo.

percentage

No


Less than 25000

53

27.2

39

41.9 92 31.925001-50000

84

43.1

37

39.8 121 42.050001-75000

40

20.5

10

10.8 50 17.4.75001-100000 11 5.6 3 3.2 14 4.9

More than Rs,100001 7 3.6 4 4.3 11 3.8Total 195 100.00 95 100.00 288 100.00

Annual Income Manufacturing Service TotalNo.

percentage

No


Up to Rs.50,000

15

7.7

8

8.6 23 8.0Rs.50,000-Rs.1,00,000

20

10.3

18

19.4 38 13.2Rs.1,00,000-Rs.1,50,000

62

31.8

30

32.3 92 31.9Rs 1,50,000-Rs.2,00,000 55 28.2 21 22.6 76 26.4Rs.2,00,000 –Rs.2,50,000 31 15.9 11 11.8 42 14.6

Above 2,50,000 12 6.2 5 5.4 17 5.9Total 195 100.00 93 100.00 288 100.00


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Table -10: Household Condition of the Rural Entrepreneur


Parameter –X: Insecurity of the Rural Entrepreneurs

Rural entrepreneurs are also asked to express their feeling of insecurity with their entrepreneurial activities. Table-11 reveals that 63 percent of surveyed rural entrepreneurs comprising of manufacturing and service enterprises feel that they are insecure with their entrepreneurial activity. 31 percent entrepreneurs never feel that their enterprise is insecure and 6 percent entrepreneurs are unable to give proper answers. The reason of insecurity as stated by entrepreneurs is as follows.

Table-11: Feeling of Insecurity

v Majority of entrepreneurs feel insecurity due to competition with urban enterprise.

v Manufacturing enterprise had to depend on the skill of their employees. Enterprise situated on government land may be vacated by Government at any time.

v Owners of Diary unit, poultry unit and piggery unit feel due to non- existence of upgraded veterinary services in rural areas.

v Lack of sufficient power is another reason for manufacturing unit such as craft paper mill, stone crushing unit etc.

v Low saving bad debt and age factor is another reason for manufacturing unit.

v Entrepreneurs feel insecure due to “Bandh Call” by various organizations. And lack of common problem to discuss various problems in rural areas.

Parameter –XI: Land Holding of the Rural Entrepreneurs in the Surveyed Population

The ownership of the agricultural land in a village is a crucial factor in economic dominance. The concentration of land in the hand of a group or a particular caste creates a considerable amount of power over the rest of the village community. It is evident from Table-12 that 63.88 percent of the rural entrepreneurs have agricultural land and rests 36.12 percent have non-agricultural land. Socio-economic inequalities can be reflected through land holding of entrepreneurs. As near about 2/3rd of the rural entrepreneur

Category No. PercentagePucca House

48

48

Semi-Pucca House

21

21Kutcha House

31

31Electricity 82 82TV/Radio 63 63

Phone/Mobile 86 76

Is there a feeling of insecurity ResponseYes

63.00

No 31.00No response 6.00


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possess agricultural land, definitely their economic condition is better due to their agricultural income than other entrepreneurs who have only non- agricultural land. The reasons for non-agricultural land may be due to their absence of ancestral property, family poverty and increase in their family size.

Table-12: Land Holding of Rural Entrepreneurs


Parameter –XII: Profile of Rural Entrepreneurs by Income Vs. Family Structure

Table-13 reveals that being a member of Nuclear family only 2.7 percent entrepreneurs belong to income group of up to Rs.50000, 15.9 percent belong to Rs.50,000- Rs.100000, 37.4 percent belong to Rs.150000- Rs.200000, 25 percent belong to Rs.200000-250000 followed by 8 percent above Rs.250000. In case of joint family 11.3 percent entrepreneurs earns up to Rs.50000, Income of 12.3 percent entrepreneurs, are between Rs.50,000- Rs.100000, 24.5 percent in between Rs.150000- Rs.200000, 23.6 are between Rs.200000-250000, 20.8percent are between Rs.200000-250000 and 7.5 percent above Rs.250000. 83 percent of nuclear family and 77 percent of joint families annual income is more than Rs.100000. It leads to conclusion that rural entrepreneurs belongs to joint family though less in number earns equally with nuclear family. Joint family is equally competent with nuclear family in respect to earnings.

Table-13: Profile of Rural Entrepreneurs by Income vs. Family Structure


Parameter –XIII: Profile of Rural Entrepreneurs by Income vs. Gender

The Table-14 given below shows the distribution of the respondents on the basis of their annual income and gender. It could be observed from the Table 12 that 7.6 percent of male entrepreneurs earnings above Rs.50000; similarly 13.3 percent of male entrepreneurs were earnings between Rs 50000-100000 per annum, 33.6 percent of male entrepreneurs earning

category Manufacturing Service TotalNo

Percentage

No


Agricultural

126

64.62

58

62.36 184 63.88Non-agricultural 69 35.38 35 37.64 104 36.12

Total 195 100.00 93 100.00 288 100.00

Annual Income (in Rs) Frequency Percentage TotalNF

JF

NF

JF No Percentage

Up to Rs.50,000

9

14

4.9

13.2 23 8.0Rs.50000-Rs.100000

27

11

14.8

10.4 38 13.2Rs.100000-Rs.150000

66

26

36.3

24.5 92 31.9Rs.150000-Rs.200000 51 25 28.0 23.6 76 26.4Rs.200000 -Rs.250000 20 22 11.0 20.8 42 14.6Above 250000 9 8 4.9 7.5 17 5.9Total 182 106 100.0 100.0 288 100.0


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between Rs.100000- Rs.150000. 26.1 male entrepreneurs earning between Rs.150000-Rs.200000. 13.3 percent of male entrepreneurs earnings were between Rs 200000-250000 followed by 6.2 percent of male entrepreneurs were earnings above Rs.250000. On the other hand 9.1 female entrepreneurs earnings above Rs.50000,13.0 female entrepreneurs were earnings between Rs 50000-Rs100000 per annum, 27.3 percent of female entrepreneurs earning between Rs.100000-Rs.150000.27.3 percent of female male entrepreneurs earning between Rs.150000-Rs.200000. 18.2 percent of female entrepreneurs' earnings were between Rs 200000-250000 followed by only 5.2 percent of female entrepreneurs were earning above Rs.250000. It leads to conclusion that female entrepreneurs were also equally competent with male entrepreneurs in regard to earnings.

Table-14: Profile of Rural Entrepreneurs by Income vs. Gender


Parameter –XIV: Profile of Rural Entrepreneur by Caste and Gender

The following table shows the distribution of respondents on the basis of caste and gender of the rural entrepreneurs. From the tabulated data, it is evident that large proportions (34.6) of respondents having other backward class and General class were males, while 27.3 percent and 23.3 percent of female respondents belonged to the general class. And 26 Percent of female respondents were from SC community followed by 23.3 percent were from ST community. It is heartening to note that good numbers of women from less privileged class were motivated to start the enterprise of their own along with men.

Table-15: Caste and Gender of the Entrepreneur


Annual Income (in Rs) Frequency Percentage TotalMale

Female

Male

Female No Percentage

Up to Rs.50,000

16

7

7.6

9.1 23 8.0Rs.50000-Rs.100000

28

10

13.3

13.0 38 13.2Rs.100000-Rs.150000

71

21

33.6

27.3 92 31.9Rs.150000-Rs.200000 55 21 26.1 27.3 76 26.4Rs.200000 -Rs.250000 28 14 13.3 18.2 42 14.6

Above 250000 13 4 6.2 5.2 17 5.9Total 211 77 100.0 100.0 288 100.0

Caste Frequency Percentage TotalMale

Female

Male

Female No percentage

ST

28

18

13.3

23.4 46 15.98SC

37

20

17.5

26.0 57 19.79OBC 73 18 34.6 23.3 91 31.59

General 73 21 34.6 27.3 94 32.64Total 211 77 100.0 100.0 288 100.00


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I. Conclusion

The above socio- economic profile of the sample entrepreneurs indicates that a large number of factors contribute towards making a successful rural entrepreneur. Education, age and family significantly influence the entrepreneurial ambition of the aspirant. The analysis of socio-economic factors reveals that the process of entrepreneurship formation in rural areas is not restricted to any particular age group, caste group or sex group, i.e. both men and women entrepreneurs comprising different age and different caste are found during survey It is found in the study that a high percent of rural entrepreneur had taken up the initiative to start enterprise creation in the age group of 31-40 years. The inclination towards entrepreneurship in the middle age group is more mainly because no other alternative career option is available once they cross this age. 73.3 percent of the rural entrepreneurs were males, while 26.7 percent of the rural entrepreneurs were females. As per the Quick Results of Fourth Census of Micro, Small and Medium Enterprises (2006-07), women enterprises comprised 7.37 percent Compared to the national average, the high participation rate of women in the present study proves that rural entrepreneurs of North Bengal Disticts of West Bengal today are becoming more competent, ambitious, and confident to exploit their entrepreneurial talents and opportunities. A large majority of the respondents constituting 90.6 percent were married. It is clear that majority of the respondents were carrying out the entrepreneurial activity as a means of their livelihood. As regards entrepreneur's family education, it is found that 79% of the rural entrepreneur's fathers have some education and these acts as a stimulating factor for their sons and daughters to enter into entrepreneurship. The average annual income of 73.9 percent of respondent's fathers was up to Rs.100,000 per annum. Sole proprietorship was the most preferred form of business organization as 87.8% of the entrepreneurs opted for it. As regards the caste, it is found that the majority of the rural entrepreneurs were from general and other backward category. Entrepreneurs belong to joint family though less in number earns equally with nuclear family. Joint family is equally competent with nuclear family in respect to earnings. Almost all the entrepreneurs have, by and large some formal education. 68 percent of rural entrepreneurs have Matric and Higher secondary level of education & 43.6 percent of graduates were below30 years. It can be said that rural entrepreneurs have enough education to pursue entrepreneurship as career. Female entrepreneurs though less in number were also equally competent with male entrepreneurs in regard to earnings. It indicates that financial soundness of the rural entrepreneurs is supposed to stimulate the growth of entrepreneurship. Though partnership organizations are few in number but they are also earnings equally at par with proprietorship form of business. It is heartening to note that good numbers of women (35.77 percent) from less privileged castes were motivated to start the enterprises of their own along with men. The


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entrepreneurs irrespective of different age group were earnings very good. 79% of rural entrepreneur's annual income above Rs.100000. 80.2 percent of nuclear family and 76.4 percent of joint family's annual income is more than Rs 100000. Regarding agricultural land, 64 percent have agricultural land and electricity is available more than 80 percent surveyed entrepreneurs. More than 70% of rural entrepreneur's stayed in pucca/ semi- pucca house, 63% have television in their houses, while 86% possess phone/ cell phones etc. It clearly showed that Hindu entrepreneurs are more in number because they are a majority community and they are socially more acceptable socially as entrepreneurs in the two districts.

The overall analysis of these variables established that socio-economic conditions of rural surveyed entrepreneurs in the district is above average and this is an indication of healthy foundation of business enterprises with a high prospect of growth. Hence on the basis of the above discussions and findings, we can conclude, the hypothesis set for the above analysis, that socio-economic factors are not supportive towards the growth of rural entrepreneurship, could not be accepted and hence the said hypothesis is rejected. Keeping this view, much more stimulating environment must be created for the speedier dispersal of entrepreneurship even among all the remote segments of society.

Finally, rural entrepreneur is a key figure in economic progress of India. Rural entrepreneurship is the way of converting developing country into developed nation. Rural entrepreneurship is the answer to removal of rural poverty in India. Therefore, there should be more stress on integrated rural development programs. The problem is that most of the rural youth do not think of entrepreneurship as the career option. Therefore, the rural youth need to be motivated to take up entrepreneurship as a career, with training and sustaining support systems providing all necessary assistance. There should be efficient regulated market and government should also lend its helping hand in this context. Grading and standardization should be promoted and promotional activities should be enhanced. NGO?s should be provided full support by government.

References

Anjali Ghosh, (2011), “Predicting Entrepreneurial Success: A Socio-Psychological Study”, the Journal of Entrepreneurship, No.11 (1), January-June 2011.

B.C Mitchell, (2004), “Motives of Entrepreneurs: A study of South Africa”, Journal of Entrepreneurship, Vol. 13. No.2, 2004, July-Dec., Sage Publication, New Delhi, Thousand Oaks, London.

Barua A Nissar and Mali Archana (2011), “Entrepreneurship and Its Role in the Growth of Micro and Small Enterprises: A Case Study of West Bengal”,


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Small Enterprise Development, Management & Extension Journal, Vol. 38, No. 2, pp. 69-83.

Choudhary K. (2009), “Effect of Globalization on Rural Entrepreneurship in India”, Half Yearly Global Economic Research Journal, ISSN 2249- 4081, Vol. I,Issue, pp. 88-92

Ganapathi and S. Sannasi, (2008), “Women Entrepreneurship – The Road Ahead”, Southern Economist, Jan15, 2008.

Geetha and Govindappa (2011), “Socio-economic background and problems of entrepreneurs in Industrial estate: A case study of Industrial Estate in Davangere, SEDME, and vol. 38. No. 3. september, pp 1-41.

Ghosh Bishwanath, (1998), “Entrepneurship Development in India”, National Publishing House, New Delhi and Jaipur.

Jayanta Kr. Gopal, (2004), “Rural Credit Scenario in North East India”, Kurukshetra, Vol. 52, No.4, February 2004

Kanitkar Ajit (1994), “Entrepreneurs and Micro-Enterprises in Rural India”, Economic and Political Weekly, Vol. 29, No. 9, pp. 25-30.

KumarJyoti and Lalhunthara (2012). “Socio-economic background of micro Entrepreneurs in Aizawal District, Mizoram.” SEDME, vol. 39. No. 2. June, pp-1-17.

Malkappa Ambala and Laxman Rajnalkar (2011), “Implementation and Impact of PMEGP scheme in Hyderabad Karnataka Region: A study, SEDME, vol. 38, no. 2. June, pp 53- 67.

Mohanty Sangram Keshari (2006). “Fundamentals of Entrepreneurship”, Prentice Hall of India, New Delhi.

Namboodiri K V N & Singh B M (2006), 'Unleashing rural entrepreneurship' Icfai university press, Hyderabad, p.4.

Nandanwar Kalpana P. (2011), “Role of Rural Entrepreneurship in Rural Development”, International Referred Research Journal, ISSN-0974-2832, Vol. II, ISSUE-26, March

Nath Dwaraka H.D. (2013). “Strategies for employment generation in Rural India- a critical evaluation.” kurukshetra, vol. 61, no. 4, pp. 27-31.

Petrin, T. (1994), “Entrepreneurship as an Economic Force in Rural Development”, Key Note Paper presented at the 7th FAO / REU International Rural Development Summer School, Herrsching, Germany, 8 – 14 September

Santana Krishnan R and Jegadeesan G (2008), Entrepreneurship and Rural Developmentin India, IUP, Hyderabad.SEDME, Vol. 31, No. 1

Sinha Harendra (2010), “Block administration without panchayat raj institutions: An Assessment in to the lunglei district of Mizoram,”


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kurukshetra, vol. 58, no. 12, pp. 44-47.

Srivastava Nirankar & Syngkon Rickey A. J (2008), “Emergence of Small Scale Industries and Entrepreneurship in the Rural Areas of Northeastern States of India: An Analytical.” The Icfai University Journal of Entrepreneurship Development, Vol. V, No. 2, pp. 6-22.


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A study on work life balance of female employees in a public sector bank


of Management



SITJM

Damini BoseStudent, MBA Final YearDepartment of Business AdministrationSiliguri Institute of TechnologyEmail-id: [email protected]

Ankush DasguptaAssistant ProfessorDepartment of Business AdministrationSiliguri Institute of TechnologyEmail-id: [email protected]

Abstract:

In today's highly competitive world people are laying more emphasis on their work. Today, hard work means more time at the office, efficiency in learning and adapting to the changing business environment. Along with professional roles, an individual also has to play different roles in family. Conflicts arise when these roles are contradictory. Family-work conflict mostly exerts influences in the family domain, resulting in lower life satisfaction and greater conflicts within family. Imbalance in work life is an alarming issue due to rapid changes in the working scenarios with more women entering into the job. With reference to the banking sector, the numbers of female employees are increasing day by day. This influx of women in the workplace triggers research on how female employees could successfully care for families while working. This study was carried out to understand the work life balance with reference to the female employees working in a public sector bank, Union Bank of India, Regional Office, Siliguri. The observations of this study revealed important aspects about the factors affecting their work life balance. This study also exposed direct impact of organizational roles and policies in maintenance of work life balance.

Keywords: Female employees, work life balance, organizational roles, public sector bank.


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Introduction:

Few decades back men were only the bread earners of the family but with passing time everything has changed; both men and women have equal responsibility in work and family (Marchand and Runyan2000). The Conditions for a new critique began with the rapid proliferation studies about Women and work (Acker1989). In order to balance work and family the women have to plan their career effectively in the banking sector. Moreover, increasing work pressure, globalization and technological advancement has an impact on balancing professional life and personal life. Greenhaus et al. (2003) operationalized the concept of work-family balance as comprising three components. These are:

Ø Time balance, whereby equal amounts of time are devoted to work and family;

Ø Involvement balance, whereby an equal level of psychological involvement in work and family roles exists; and

Ø Satisfaction balance, whereby an equal level of satisfaction is derived from work and family roles

The best work-life balance is different for each of us because we all have different priorities and different lives, a good working definition of Work-Life Balance is: Work– life balance is an idea including legitimate organizing between "work" (profession and aspiration) and "way of life" (wellbeing, joy, recreation, family and otherworldly improvement/contemplation). This is related to the idea of lifestyle choice. A proper work life balance can be maintained only if an individual is capable to achieve and enjoy in each of the four life quadrants: Family, Friends, Health and Career. All over the world the organizations are demanding more and more from their employees; parallel to this, they are focusing more on the motivation and recognitions of the employees to enhance their productivity. In the present corporate world workforce consists of many working women; whose aim is to find a balance between work and family roles is a matter of concern for them as well as for the organizations.

Importance of the study:

In the present quick paced business world, the capacity to accomplish work life balance is winding up increasingly troublesome. Managers expect more from staff, and staffs are progressively putting extra weight on themselves to accomplish more prominent outcomes. Keeping up work life balance is not


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just essential for own well-being and connections but also for enhancing the productivity of one's work execution.

The employee work life balance is the equilibrium condition between her work role, which she is presently playing in the organization and her social role, which she plays in her family and society. The organization will only thrive and survive when its female employees work life are balanced.

Work life and personal life are inter- connected and interdependent. Spending more time in office, dealing with clients and the pressure of job can restrain and affect the personal life, sometimes making it impossible to even complete the household activities. On the other hand, personal life can also be demanding if an employee is married and have kids or aging parents whom she need to look after. It can lead to absenteeism from work, creating stress and lack of concentration at work.

Objective of the study:

v The study aims to explore and gain better understanding the work-life of women employees (both married and unmarried) working in the public sector Bank.

v The study will examine the various factors influencing the work life balance of women employees of Bank.

v This paper aims to understand the role of various factors in balancing the work life of women employees.

Review of the literature:

A handful number of research studies were already conducted on Work Life Balance especially on Women who were working indifferent sectors in India as well as in the other parts of the world. The review is to scrutinize what has already been done on this topic. It gives an in-depth and clear idea of the overall field. It helps in creating a base for the research and helps in churning out a number of ideas for investigation in the domain area. The scrutiny of literature provides a great understanding of the topic and its crucial aspects. It also ensures the avoidance of unnecessary duplication in the studies.

Tiwari Mansi (2017) opined in her study that maximum of female employees believes that their work & their family obstruct each other & which may be because of the challenging demands of the today's environment.

Jane and James (2014) the aim of this research was to analyze the relationship between work life balance policies and employee job satisfaction. Work life balance entails attaining equilibrium between


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professional work and other activities, so that it reduces friction between official and domestic life. Job satisfaction refers to the attitude people have towards their job and the organizations they work for. The quality of work life policies is increasingly becoming part of the business strategy and the focus is on the potential of these policies to influence employee's quality of working life and more importantly to help them maintain work-life balance with equal attention on performance, commitment at work and job satisfaction.

Kumari T.K and Devi R.V (2013) the concept of work life balance has stemmed from the fact that an individual's work life and personal life may put forth conflicting demands on one another and the demands from both the domains are equally important. Work life balance refers to maintaining the balance between responsibilities at work and at home. Work life balance is one of the most challenging issues being faced by the women employees in the 21st century because of the type of roles they play at home and the spill over of personal life over work life.

Lubana Riz V(2013) This paper is aimed at the theme of work-life balance, and to explain the significance of the said subject .Work-life balance is a key area for quality concern gurus, who believes that balance between work and life is of vital importance when it comes to performance of the workforce. The paper conducted study on effectiveness of workforce in the banking sector in Pakistan where the aim was to find out whether the employees are able to practice a sense of control.

Carmeli (2013), examined the extent of which senior managers with high emotional intelligence, employed in public sector organizations develop positive attitudes behaviour & outcomes. Results show senior managers who had high emotional intelligence were more likely to be effectively control work-family conflict than those who have low emotional intelligence.

Gururaja, Umesh Maiya, Elsa Sanatombi Devi, Anice George (2013), conducted descriptive Survey among 67 nursing faculty towards their perceptions and attitude towards Quality of Work life showed that majority experienced well balanced Work life, 9 expressed moderately work-life and none of them rated under poor work life balance. Data regarding job satisfaction showed that majority had moderate job satisfaction and had high job satisfaction. The correlation between Work life balance and job satisfaction showed positive correlation which can be inferred saying that high quality of Work life balance will improve job satisfaction.

Lalitha Kumari (2012) in her study emphasized that each of the work life Balance factors on its own is a salient predictor of job satisfaction and there is significant gap between male and female respondents with job


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satisfaction with reference to various factors of Work life balance. The result of the study had practical significance for human resource managers of especially banks to improve staff commitments and productivity along with designing recruitment and retention of employees.Vartha Raj & Vasantha (2012) studied the Work Life balance of working women in service sector. They specified that the ultimate performance of its employees which in turn depends on numerous factors. The relationship between personnel and professional life can be achieved through emotional intelligence. Better emotion management is necessary in order to accomplish objective of life.

Modi, Chima (2011), examined the extent to which Work Life Balance policies and practices are a reality for employees in Banking Sector. The study also examined if there were any barriers and reasons for mutual adoption of Work life balance policies in Nigerian Banking sector. The study suggested an urgent need to communicate clearly about the Work Life Balance policies and practices to its employees, to raise awareness further and improve the knowledge and understanding of relevant policies.

Shariq Abbas, Vandana Premi (2011), tried to look at the awareness, attitude perceived importance and formalization of Work Life Balance policies in Banking sector, both Private and Public sector banks. Findings suggest that employees perceive flexible working arrangements as most important Work Life balance policy; nonetheless say the perceptions towards the implementation of Work life balance in their organizations are negative. The study also revealed that the extent formalization of work life balance policies in Public and Private sector banks had no written documents for the same in both the systems.

Sundar, Sundarraj, Ashok kumar (2011), indicated that despite job security and strong welfare measures protect in private sector banks and opportunity for qualification upgradation by women employees it is the fear of promotion that keeps the women folk to continue to languish in lower cadres but the plight of women folk in new generation banks is different in that they do not have a job security and their pay is performance linked. Study revealed that women executives in Private sector banks are found to be more knowledgeable about work, maintain a cordial relationship with customers and have positive attitudes towards work.

Subramaniam, 2010. Family friendly policies at work place are becoming a challenge for the employers to provide. They commonly refer to policies that enable employees to balance the demands of paid work and personal life which can be in the form of workplace flexibility or work time flexibility.

Singh Amita (2010), based on their study on work-life balance in IT sector in India suggested that Flex time, home working, child care facilities, option to


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work part time are facilities that need to be introduced and recommended for building a supportive work environment in the organizations.

Trauth, Quesenberry Huang, (2009). Work-life balance is one of the factors that affect women employees' retention in the company.

Skinner and Pockock (2008) investigated the relationship between Workload, work schedule control, work hours and their fit with preferences and work life conflict among full time employee N=887). It was found that the strongest association with work life conflict was demonstrated by work overload followed by work schedule control and work hours fit. Time based work life policies, procedures and interventions were found necessary but not sufficient, for addressing work life conflicts.

Felstead Alan (2007) in his research on “opportunities to work at home in the context of Work-Life Balance” finds work-life balance & Family friendly employment is much in vogue among politicians and business leaders.

Verma, (2007) as early as 1960's researchers have begun to study and find some imbalance between work and personal life. Various studies on work life thereafter finds that what happened at the workplace have significant impact on individuals and their families. Work life balance means adjusting the pattern of work so that your employees can benefit from a better fit between their work and areas of their personal life and in long run hope to achieve sustainable development and profitability.

Lewison, 2006. Balancing work and family has overtaken benefits and compensation as a key factor in employee job satisfaction.

Voydanoff (2001) have found significant interdependence between the roles that each requires workers to perform work-family conflict practices when balance cannot be achieved between the two roles. Either role may demand more time or more responsibilities, potentially leading to a reduction in.

Lewis,(2000)The concept of work-life balance is based on the notion that paid work and personal life should be seen less as competing priorities than as complementary elements of a full life. The way to achieve this is to adopt an approach that is “conceptualized as a two way process involving a consideration of the needs of employees as well as those of employers”.

Bachmann and Schwartz (1994) discussed on the literature that work and balance is quite varied. Family-Friendly work environment, such as flexi-time, tele-work has been portrayed as an important component of an individual worker's preferences towards work time. It has been suggested to the organizations that if work and non-work lives environment should be provided to the employees with a means of recruiting, retaining and


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motivating their work force.

Research Methodology:

This paper focuses on the study of work life balance of female employees working in Union Bank of India, Regional Office, Siliguri. Primary data was collected through a set of questionnaire given to the female employees. A sample of 33 female employees from a population of 75 female employees working under this regional office was collected. All the respondents provided the needed information related to the topic selected, the analysis was based on the same. A single instrument was used for data collection which was designed on 5-point Likert scales to measure the various variables. A content and construct analysis was undertaken by making use of extensive literature and previously validated constructs.

Analysis of data and inference:

· When asked to respondents about the working environment of their banks, 39% of employees were strongly agreed, 57% employees were agreed whereas 4% employees were undetermined about the working environment. None of the employees were disagreed in this regard.

· 18% female employees were strongly satisfied, 40% of them were satisfied when asked about the working hours in the bank .21% employees were undetermined about the same whereas 21% were dissatisfied with the practiced working hours. None of the employees were strongly disagreed in

Factors Strongly

Agree

Agree Undetermined Disagree Strongly

Disagree

Friendly working environment

13

19

1 0 0

Satisfying working hours

6

13

7 7 0

Getting enough time for family

4

6

10 12 1

Capable to balance work life

6

13

10 4 0

Organizational role in managing work

life balance

3

18

7 4 1

Evenly distribution of work 3 21 6 1 2

Work life management policy 4 12 12 5 0

Good leave policy 5 20 8 0 0


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this regard.

· When asked about getting enough time for family, 12% employees were strongly agreed and 18% were agreed on always getting time for family .30% were undetermined whereas 36% respondents disagreed to get time for their family and 4 % responded they never got enough time for their family.

· 18% respondents strongly agreed and 40% respondents agreed that they are able to balance their work life.30% respondents were undetermined about their ability to balance work life and 12% disagreed of maintaining balance.

· 10% respondents strongly and 54% respondents supported the fact that their organizations often took initiatives to manage work life of its employees. 20% respondents failed to determine whether or not organizations take initiative to manage work life and 12 % supported that organization hardly took initiatives and 4% supported the fact that organization never took initiatives. Employees also revealed that a supporting environment is most prominent factor that helps to fulfill work and family commitments.

· When asked about whether work in organization was evenly distributed 9% were strongly agreed, 64% of respondents agreed to have an even distribution of work, whereas 18% commented it depends on situations. 9% opined an uneven distribution of work load. Unmarried female employees stated that work in banks is more evenly distributed in comparison to the married ones.

· When asked whether the employees were able to balance their work life due to work life management policy, 12% strongly agreed, 37% agreed whereas other 37% were undetermined to it and 14 % disagreed to it. The disagreement among the employees may be due to the work pressure, policies not properly communicated or policy misinterpreted. Married employees are mostly found to be undetermined or disagreed with the practice of good work life management policy.

· When asked about the leave policy, 15% opined the leave policy to be very good, 20 % believed that good leave policy is practiced in banks. None of employees were dissatisfied with the leave policy of the organizations, although 24% of bankers found the leave policy to be moderate. Leave policy are liberal in public sector banks but married employees are less satisfied in comparison to the unmarried employees with the leave policy in practice.· When the question was raised regarding taking responsibility for maintaining the household chores for women working in public banks 48%


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household work responsibility was with maid, 6% work responsibility was with the employee herself. Only 36% employees are helped by their spouse for household chores and 10 % employees are helped by their other family members. In most of the cases maid is the one who takes cares of day to day household chores once everyone leave for the work. It is been also observed that married women says that they could manage their house hold work. Whereas in case of unmarried employees it was seen that other family member helps to do day to day work.

· When it was queried who leaves work or stays out of work to care for sick children/parents it was found that 37% of women have to stay home to take care of sick children/parents. 37% private bankers responded that other family member stayed when required. 24% bankers commented that both husband and wife stayed at home to take care of sick children/parents and 2% call out their friends to stay back and look after sick children/parents. Fro this it could be inferred that women prefer more to be at home than any other member. One of the reason might be that women want to ensure that their near and dear once are well taken care of when needed.

· When asked about whether there are any tensions with spouse in managing professional life, 6% employees agreed that they often faced tension, and 6% employees agreed that they quite often faced tensions at home. 38% hardly faced tensions at home and 50% bankers disagreed to having conflicts at home. In society there exists a perception that women are completely responsible for their household chores and get very less support from their partners. Conflicts are due to imbalance in professional and personal life. From this study it can be concluded that days are changing and husbands are providing support to their working wives thus conflicts are lowered down.

Conclusion:

The concept of work life balance has attracted the attention of not only different organizations but also researchers and HR practitioners. This mainly could be attributed to ever increasing demands of work along with increased family demands owing to the necessity of spouses to be employed and quest for personal achievements in personal life. As our tradition is concerned female is always to be more responsive towards their family responsibilities but now they are also active in professional world. This paper compile together salient investigations on work life balance undertaken across a particular public sector bank which identifies intricate interrelationships existing between different life and employment parameters. This survey revealed that family plays a vital role of in maintaining work life balance. Family members look after household chores in case of both married and unmarried females. Even husbands are


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contributing in household duties so that a woman can maintain good work life balance. Ambient working environment and satisfied working hours are practiced in Union Bank of India but married employees are found to be less satisfied in comparison to the unmarried ones since they are unable to give enough time to their family, there's laid a hurdle. Most of employees find this organization to maintain good policy in managing employees work life balance. But betterment of those policies can be done which will encourage more female to join public banking sector as it is providing a better working environment for women, attracting young females more into the banking sectors.

References:

Tiwari Mansi, Work Life Balance of Female Employees in Private Institutions, Gwalior: An Investigation, IOSR Journal of Business and Management (IOSR-JBM) E-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 5. Ver. V. (May. 2017), PP 35-38

Ashtankar, O. M. (2016). Analysis of the impact of work life balance on wellbeing of police department employees of Nagpur District. IJAR, 2(5), 380-383.

Marchand, M.H. &Runyan, A.S. (2000). Gender and Global Restructuring: Sightings, Sites and Resistances, London, Routledge.

Acker, J. (1989). „Doing Comparable Worth: Gender, Class and Pay Equity,Philadelphia:Temple University Press.

Mordi, Chima.Work Life Balance practices in banking insights from Nigeria –Sep, 1, 2011.Publication Life Psychologia.

Lalitha Kumari. Employees Perception on Work Life Balance and its relation with job satisfaction in Indian Public Sector Banks –IJEMR February 2012- Vol 2(2). Online- ISSN. 2249- 2585. Print ISSN. 2249- 8672.

Vartharaj. V and S. Vasantha. Worklife Balance as a source of Job Satisfaction an exploratory study on the view of women employees in the service sector. Vol 2(3), March 2012, ISSN 2231 5780.

Shariq Abbas S. M, Vandana Premi. Attitude and perceived importance towards Work Life Balance Policies : A comparative employee analysis of private & public sector banks- Journal of research in computer application & Management, Vol-1(9) Nov 2001, ISSN 2231 1009.

Sundar K, Sundararaj J, Ashok Kumar. A study on Job Performance of Women Executives in private sector and new generation private sector banks in Pondicherry: IJEMR Sept 2011, Vol-1(4) – ISSN 2249-2585.

Expatriate Work Life Balance survey. International survey of Work Life Balance policies 2001 New York: Industrial Relations Counselors.


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Gautam Ramnath, Work Life Balance – Dissertation by SDM Institute for management development.

Ramesh K. Miryala and Nagapriya Chiluka. Work Life Balance amongst teachers” the IUP Journal of Organizational Behaviour, Vol. XI, 2012.

S. Ashwini and Kumaraswamy M. Work Life Balance with special reference to public sector banksin Karnataka, Vol-3(2), Feb 2014. ISSN No 2277- 8160.

Bachmann. K, Work Life Balance – are employees listening? Ottawa: Conference Board of Canada, 2000.

Namita. Work-Life Balance in India- The Key Driver Of Employee Engagement. International Journal of Management and Commerce Innovations, Vol-2(1), pp: (103-109), ISSN 2348-7585.


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An Empirical Study on the Determinants of the Capital Structure and the trends of Return in a Leading Indian Textile Company


of Management



SITJM

Santanu PaulStudent, Department of Business Administration Siliguri Institute of TechnologyE-mail Id : [email protected]

Arup Kumar BoseAssistant ProfessorDepartment of Business Administration Siliguri Institute of TechnologyE-mail Id : [email protected]

MBA Final Year

Abstract:

This paper examines the relative importance of six factors in the capital structure decisions of publicly traded Indian firms. Existing empirical research on capital structure has been largely confined to developed countries. The papers related to emerging economies usually group several countries together. The Indian Financial Market has been developing at an exponential rate and dedicated research in the field in required. The paper utilizes a larger data set in comparison to the earlier studies on India and examines additional factors. The objective of this paper is to build on previous studies on the Indian capital market and model all the important factors affecting capital structure decisions of Indian firms post liberalization policy by Government of India. We find that factors such as tangibility of assets, growth, firm size, business risk, liquidity, and profitability have significant influences on the leverage structure chosen by firms in the Indian context. The results suggest that the capital structure (Total Borrowing to Total Assets) of the profit making PSUs is affected by Asset Structure (Net Fixed Assets to Total Assets, NFATA), Profitability (Return on Assets, ROA) and Tax. Unlike suggestion of pecking order hypothesis, growth (defined as growth in total assets) is positively related to leverage. In contradiction to theory tax and leverage are negatively related. Firms with less effective tax rate have gone for more debt. None of the other variables like non-debt tax shield (NDTS), Volatility, Size were found to be significant.

Keywords: Capital Structure, Indian Financial markets, corporate finance, Financial Health, Public Ltd. Co.


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Introduction

During the last 50 years or so, the role of financial management has undergone a tremendous change. The ownership structure, size of business firms, security markets, financial system and instruments have greatly changed. As a result, the role of a finance manager has become far more important than merely a fund raiser. The finance manager is expected to maximize the economic welfare of the owners, which is represented by the market value of the firm. To achieve this objective, one has to take a number of decisions, the most important being the investment, financing and dividend decisions. Do changes in capital structure affect the value of a firm? This question has been puzzling the minds of both the finance managers and academicians for the last 40 years, especially since the publication of the path breaking articles by Franco Modigliani and Merton Miller. In a perfect capital market, their irrelevancy model is perfectly valid and is supported by all. But, in case of an imperfect market, the views differ greatly and, as a result, till date, no universally accepted model has been developed on this crucial issue. In India, no significant work has been done in this regard. This paper makes a humble attempt to empirically test whether there exists an optimal capital structure in Indian companies, both at the micro and the macro level. The paper also tries to examine whether the financing decisions affect the value of a firm. The corporate finance pattern is of vital importance for the financial well being of companies. Corporate finance decisions affect the various facets of the corporate management directly or indirectly, which ultimately determine the wealth of investors.How do firms choose their capital structures? In his answer to this question, Prof. Stewart C. Myers, then President of American Finance Association in 1984 said that “we don't know”. Despite decades of intensive research, and hundreds of papers after Modigliani and Millers' seminal work, surprisingly there is lack of consensus even today among the finance experts on this basic issue of corporate finance. In practice, it is observed that finance managers use different combinations of debt and equity. Academicians and practitioners alike have found it difficult to find out how a firm decides its capital structure in the perfect capital markets of the west as well as in the imperfect capital markets, as in India. This has led to an upsurge in research on company finance, particularly aimed at understanding how companies finance their activities and why they finance their activities in these specific ways. In this article we have tried to explain this.

NEED OF THE STUDY

Decisions relating to financing the assets of a firm are very crucial in every business and the finance manager is often caught in the dilemma of what the optimum proportion of debt and equity should be. As a general rule there should be a proper mix of debt and equity capital in financing the firm's assets. Capital structure is usually designed to serve the interest of the equity


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shareholders.

Therefore instead of collecting the entire fund from shareholders a portion of long term fund may be raised as loan in the form of debenture or bond by paying a fixed annual charge. Though these payments are considered as expenses to an entity, such method of financing is adopted to serve the interest of the ordinary shareholders in a better way. Capital structure maximizes the market value of a firm, i.e. in a firm having a properly designed capital structure the aggregate value of the claims and ownership interests of the shareholders are maximized.

OBJECTIVE OF THE STUDY

Primary objective-

1.To know about the financial position of “Arvind Ltd.”

Secondary objective-

1.To help us to know the short-term liquidity position, working capital position, as also the long-term liquidity position of the firm .

2.To study the working capital management of the company.

3.To understand the profitability of the firm

4.To assess the factors influencing the financial performance of the company.

5.To understand the overall financial position of the company.

METHODOLOGY

The information is collected through secondary sources during the study. That information was utilized for calculating performance evaluation and based on that, interpretations were made.

Sources of secondary data:

1. Most of the calculations are made on the financial statements of the company provided statements.

2. Referring standard texts and referred books collected some of the information regarding theoretical aspects.

3. Method- to assess the performance of the company method of observation of the work in finance department is followed.

4. Tools used

a) Ratio Analysis


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Graphical Representation

DATA ANALYSIS AND INTERPRETATION

Trend Analysis of EBDIT (Earning before interest dividend and tax)

Bar chart showing the trend analysis of EBDIT

INTERPRETATION:

The EBDIT of Arvind Ltd. was increased by 17% in the year 2016 - 2017 respectively in comparison with the year 2012-13. So is reflected in the ratio, but still the EBDIT margin was decreased by 16% in the year 2016 - 2017 on year to year basis. So on the basis of simple trend we can say that Arvind Ltd. has done well but on the basis of year to year trend it has not performed well since the year 2014-15.

Year

EBDIT(Earning before

Interest

dividend and tax)

(Rs in crores)

Simple Trend (%)Year To Year Trend (%)

2012-2013

680.15

100 100

2013-2014

862.54

127 127

2014-2015 923.36 136 107

2015-2016 906.73 133 98

2016-2017 798.9 117 88


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Trend Analysis Of Net- Profit After Tax:

Bar chart showing the trend analysis of PAT

INTERPRETATION:

Net-Profit after tax of Arvind Ltd. shows a growth and it was increased by only 4% in the year 2016 - 2017 from the year 2012-13. But year to year basis it shows a decline since 2014-15. Therefore it can be said that the financial condition of the company is going down since 2014-15 because profit maximization is the ultimate objective of any corporate company.

Trend Analysis Of Net- Profit Ratio:

Bar chart showing the trend analysis of PBT

Year

PAT(Profit After Tax)

(Rs in crores)


2012-2013

261.22

100 100

2013-2014

361.39

138 138

2014-2015 377.43 144 104

2015-2016 318.85 122 84

2016-2017 270.88 104 85

Year

PBT(Profit Before Tax) (Rs in crores)


2012-2013

261.22

100 100

2013-2014

408.59

156 156

2014-2015 477.47 183 117

2015-2016 449.00 172 94

2016-2017 382.64 146 85


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EPS (Earning Per Share) (in Rs)


2012-2013

10.12

100 100

2013-2014

14.00

138 138

2014-2015 14.62 144 104

2015-2016 12.35 122 84

2016-2017 10.48 104 85


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INTERPRETATION:

Net-Profit after tax of Arvind Ltd. shows a growth and it was increased by 46% in the year 2016 - 2017 from the year 2012-13. But on the basis of year to year, it shows a decline of 9% . It may be possible that the demand in the market has been decreased due to some social, political and natural issues. Therefore the company should make an efficient future plan for market promotion to increase the demand in the market. Because profit maximization is the ultimate objective of any corporate company.

Trend Analysis Of Earning Per Share:

Bar chart showing the trend analysis of EPS

INTERPRETATION:

Earning per share of Arvind Ltd. was Rs.10.12 per share in the year 2012-13, and it has been increased to Rs.10.48 per share in the span of five years. It means it has been increased by only 0.36%.Whereas in year to year trend it is seen to have decreased by 15% in 2016-2017 as compared to the year 2012-13. It may be possible that the company has invested a large portion of profit for the expansion of its business. It will be very good for the future financial prospect of business. For this reason the earning per share is not increasing gradually. But it will help to increase the value of the firm in future.

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Table Showing TheVarious Financial Data of Arvind Ltd:

(Rs in crores)

INTERPRETATION:

1.Dividend

The dividend of the firm was Rs.42.58 crores in the year 2012-13. It had gradually increased for the consecutive 2 years to Rs.65.86 crore in the year 2014-15. But there had been a decline to Rs.61.98 crores in the year 2015-16. And has remained the same in 16-17.Therefore it can be said that the company is investing its profit in expansion of its business. It is good for the future prospects of the company.

2.Cost of debt

The cost of debt was Rs.13.67 crores in the year 2012-13.It has been reduced each year and reached to Rs.8.17 crores in the year 2016-17. It proves that the rate of interest on debt capital is decreasing during the last 5 years. It also decreases the financial risk of the company.

3.Book value of debt

The book value of debt was Rs.1962.64 in the year 2012-13. It is seen to be increasing each year. It has reached to Rs.2866.14 crores in the year 2016-17. Increase of book value of debt increases the debt equity ratio of the company. Increase of debt reduces the tax liability of the company and it also increases the profit available for the equity shareholders. But on the other hand the financial risk of the company increases.

4.Book value of the firm

The book value of the firm was Rs.78.35 crores in the year 2012-13. It is seen to be increasing each year, and had reached to Rs.125.47 crores in the

Particulars

2012-13 2013-14 2014-15 2015-16 2016-17

EBIT(Earning before interest and tax)

680.15 862.54 923.36 906.73 798.90

Interest

268.44 296.44 320.06 311.13 234.28

PBT(profit before tax)

261.22 408.59 477.47 449.00 382.64

Taxes

0.00

47.20 100.04 130.15 111.76

PAT(Profit after tax)

261.22 361.39 377.43 318.85 270.88

Dividend 42.58 60.67 65.86 61.98 61.98

Interest + Dividend 311.02 357.11 385.92 373.11 296.26

Cost of Debt: Kd 13.67 13.17 12.78 11.70 8.17

Required return on equity: Ke 2.10 2.56 2.55 2.25 1.91

Book value of debt 1962.64 2249.18 2502.89 2657.29 2866.14

Book value of equity 258.04 258.17 258.24 258.24 258.36

Book value of the firm 78.35 91.47 99.77 106.43 125.47

Number of shares (lakhs) 2580.43 2581.76 2582.43 2582.43 2583.59

Earning per share 10.12 14.00 14.62 12.35 10.48

Book value debt ratio 0.97 0.95 0.97 0.97 0.88


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year 2016-17. We can say that the company is expanding its business and also increases the financial health. When the book value of the firm increases then the company can easily fulfill its wealth maximization objective. It is good for the financial health of the company. This will increase the stability of the company in the long run.

FINDINGS & CONCLUSION

FINDINGS:

From the above calculations and data we can say that the company's financial health is very good and the company is doing business very efficiently. We know that the two main objectives of a firm are profit maximization and wealth maximization. Arvind Ltd has fulfilled these two objectives very easily. We may also say that in future the company will make more and more profit and the value of the firm will also be increased in future.

CONCLUSION:

1.The study is made on the topic on the Determinants of the Capital Structure and the trends of Return in a Leading Indian Textile Company.

2.The debt equity ratio shows the long term financial position of the firm.

3.The profitability ratios are helpful in evaluating the efficiency and performance of Arvind Ltd.

4.The financial performance of the company for the five years is analyzed and it proved that the company is financially sound.

REFERANCES:

Baron, D P (1974). "Default Risk, Home-made Leverage and M-M Theorem," American Economic Review, 64, pp 176-82.

Baron, D P (1975). "Firm Valuation, Corporate Taxes and Default Risk," Journal of Finance, 30, pp 1251-64.

Brennen, M J and Schwartz, E S (1978). "Corporate Income Taxes, Valuation and the Problem of Capital Structure," Journal of Business, pp 103-15.

Brigham, Eugene F and Gopanski, Louis C (1985). Vol. 21, No. 3, July-September 1996 35

Davenport, M (1971). "Leverage and the Cost of Capital: Some Tests Using British Data/ 'Economica, pp 136-62.

De Angelo, Harry and Masulis, M S (1980). "Optimal Capital Structure


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under Corporate and Personal Taxation," Journal of Financial Economics, 8, pp 3-29.

Durand, David (1963). "The Cost of Capital in an Imperfect Market: A Reply to M-M," American Economic Review, 53.

Jensen, M and Meckling, W (1976). "Theory of the Firm: Managerial Behaviour, Agency Costs and Ownership Structure," Journal of Financial Economics, 3, pp 305-60.

Kraus, A and Litzenberger, R H (1973). "A State Preference Model of Optimal Financial Leverage," Journal of Finance, 28, pp 911-22.

Masulis, M S (1980). "The Effect of Capital Structure Changes on Security Prices: A Study of Exchange Offers, " Journal of Financial Economics, 8, pp 139-78.

Masulis, M S (1983). "The Impact of Capital Structure on Firm Value," Journal of Finance, 38, pp 107-25.

Miller, M H (1977). "Debt and Taxes," Journal of Finance, 32, pp 261-73.

Modigliani, F and Miller, M H (1958). "The Cost of Capital, Corporation Finance and the Theory of Investment," American Economic Review, 48, pp 261-97.

Modigliani, F and Miller, M H (1963). "Corporate Income Taxes and the Cost of Capital: A Correction," American Economic Review, 53, pp 433-43.

Modigliani, F and Miller, M H (1966). "Estimates of Cost of Capital to Electric Utility Industry 1954-1957," American Economic Review, 56, pp 333-91.

Pandey, IM (1992). Capital Structure and Cost of Capital. Vikas Publishing House.

Scott Jr., J H (1976). "A Theory of Optimal Capital Structure," Bell Journal of Economics, Spring, pp 33-54.

Scott Jr., J H (1977). "Bankruptcy, Secured Debt and Optimal Capital Structure," Journal of Finance, 32, pp 261-73.

Sharma, R and Rao, H (1969). "Leverage and the Value of the Firm," Finance Journal, 24.

Smith, V L (1972). "Default Risk, Scale and Home-made Leverage Theorem," American Economic Review, 62.

Solomon, Ezra (1963)." Leverage and the Cost of Capital," Journal of Finance, 18, pp 273-79.

StiglitzJE (1969). "A Re-examination of M-MTheorem," American Economic Revieiv, 59, pp 784-93.

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Stiglitz, J E (1974). "On the Irrelevance of Corporate Financial Policy," American Economic Review, 62, pp 851-66.


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A Study on Consumer Behaviour towards Eco- friendly Paper & Impact of Advertisement & Sales Promotion


of Management



SITJM

Abstract:

In India paper industry plays a vital role in the overall industrial growth and also provides a necessary medium to propel our knowledge based economy forward in the new millennium. In spite of large no. of population, paper consumption in India is far behind. As in India around 47% papers are manufactured from recycle paper so I chose this Paper Industry with special focus on Recycle Paper. The purpose of this study is to understand the variables affecting the consumer behavior while purchasing green products. Eco-friendly paper i.e. paper which is manufactured from used paper and reduces the harm to environment compared to manufacturing of traditional paper (virgin paper). The dependent factor is purchase intention and the independent factors are environmental behavior, attitude, knowledge and norms. The structured questionnaire was used collect primary data and analyzed using software package. From this research it is found that attitude and personal norms are positively influencing consumer purchase intention towards eco-friendly paper. This study helps the marketers to design strategies for sustaining in the competitive paper industry. The paper industry will have its demand in spite of latest technologies. The paper is used for different purposes like printing, writing, documentation and packaging etc. Hence the understanding consumer behavior and impact of Advertisement and Sale Promotion is very important for marketers in the paper industry.

Keywords: Consumer attitude, Eco-friendly paper, Promotional impacts


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Tanuka ChakrabortyStudent , MBA Final YearDepartment of Business Administration Siliguri Institute of Technology Email : [email protected]

Anupam GangulyAssistant ManagerMarketing & SalesSapphire Paper Mills, Siliguri.Email: [email protected]

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Introduction

Environment concern had become the most important issue for mankind in the present world. The businesses are no exception for this issue and they are responding through environment-friendly products. Throughout this paper the terms eco-friendly products, environment-friendly products, green products mean the same and are used interchangeably. The depletion of oil resources, raw materials and pollution are making organizations to rethink about their products and services. The eco-friendly products are being introduced by modern organizations to protect the environment. Eco-friendly paper is one of the solutions to save the environment and reduce the pollution in the present world. The present study is to understand the consumer behavior and adoption intention of consumers towards the eco-friendly paper. Many products like jute bags, CFL bulbs, hybrid cars, natural soaps, eco-friendly paper, paper cups, energy saving electronic products, organic food etc are available in the market which are environment-friendly products and marketing of such products is known as “Green Marketing”. The products which do not cause any kind of harm to the environment are called as green products. Eco-friendly paper is one of the green products which reduce pollution caused by consumption of paper. Paper is used for different purposes like writing, printing, packaging and newsprint etc (IPMA). Hence it is essential to think of eco-friendly paper which causes less harm to the environment. This study is aimed to understand consumer behavior with regard to eco-friendly paper. Eco-friendly products are not new to manufacturers and organizations like ITC, JK Paper Limited, Yash Papers Ltd, Sapphire Papers have already started marketing eco-friendly paper.

a) About Eco-Friendly Paper:

The paper industry is one of the oldest industries in the world and paper is an essential product for mankind. The paper is manufactured from wood pulp from pulpwood trees. The paper manufactured from wood pulp for the first time is known as “virgin paper” or “paper” (Paper). If paper is manufactured by recycling the used paper which is collected through reverse logistics and consumes less resources while production is known as eco-friendly paper. The consumption of eco-friendly paper also eliminates deforestation because pulpwood trees are not used in the production process. Less quantity of chemicals are used in production of eco-paper compared to virgin paper which is made from pulp of trees. Some decades back when the organizations have started manufacturing eco-friendly paper the quality is low and the color of paper used to turn yellow as the paper grows old but with the latest technologies in paper industry it is hard to find any difference between virgin paper and eco-friendly paper. The organization marketing eco-friendly paper gets it certified by Forest Stewardship council (FSC).


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The FSC is international non-governmental organization which certifies ecofriendly paper products and also the organizations which manufacture eco-friendly paper (FSC). Every 1 ton of recyclable paper saves 17 tress, 225 kilowatts of power, 275 pounds of sulphur and 60,000 gallons of water (Khanna). The manufacturing of eco-friendly paper had become competitive advantage for organizatoins. The brands of eco-friendly paper from top organizations in the paper industry are JK Copier, Image Copier, Double A, Bilt Copy Power, Bilt Royal Executive Paper, Andhra Millennium Copier, JK Copier Plus, Sapphire Papers etc.

Literature Review

The lack of awareness about green products, negative perceptions of green products, can be resolved by educating customers and building better products respectively (Bonini & Oppenheim, 2008). The responsibility of educating consumers is not sole responsibility of businesses but the government should play a prominent role in encouraging the consumers to adopt for eco-friendly products. Wang & Tung (2012) had conducted a study to know how life style of consumers influence their behavior towards environment-friendly products and confirmed that plan oriented consumers are having positive attitude towards green products. Chen &Chang (2012) have developed a model for understanding green purchase intentions among consumers by using four factors – green perceived value, green perceived risk, green trust and green purchase intention and stated that consumers who perceive green products are better for environment will have positive purchase intention towards green products. Murphy et.al (2010) found that consumers positive attitude towards green products is not influenced by recession. The factors for understanding consumer behavior in this research study are demographic, responsibility, information and purchasing. Paco & Raposo (2009) had conducted a survey to identify the characteristics of green consumers. The factors considered are environmentally friendly products, environmental activism, environmental knowledge, environmental concern, recycling, perception, resource saving, economic factor and skepticism towards environmental standards. Cheah & Phau (2011) had investigated the about the influence of ecoliteracy, interpersonal influence and value orientation on consumers attitude towards environmentally friendly products and stated that these factors have strong correlation with attitudes of consumers. Manaktola & Jauhari (2007) had conducted a survey to know about the consumers' attitude towards green practices of hotels and found that consumers are impressed with green practices of hotels but they are not willing to pay more for the same. The green marketing tools like ecolabel, eco-brand and environmental advertisements also influence the purchase behavior of consumers and stated that trust in eco-brand and eco-label positively influence the behavior of consumers towards ecofriendly products (Rahbar & Wahid, 2011). According to Chen (2010) green brand image, green satisfaction, and green


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trust are important factors for building green brand equity. The ecologically conscious consumer behavior can be briefly explained by psychographic variables like perceived consumer effectiveness rather than demographic variables. The green purchase intention may not lead to green purchase behavior (Akehurst, Afonso, & Goncalves, 2012).

Research Methodology

Objective of the study

The current study is designed to understand the factors influencing purchase intention behavior of consumers while purchasing green products with special reference to eco-friendly paper and impact of advertising and sales promotion. This study investigates whether consumers with environmental knowledge are having awareness on eco-friendly paper. The study also finds the influence of demographic and psychographic variables on green purchase intention of consumers. The study will also provide insights for organizations in the paper industry so that they can formulate marketing and Advertisement and Sales Promotion strategies to enhance the sales of eco-friendly paper.

Hypotheses Model

H1: There is no relationship between environmental behavior (EB) and environmental knowledge (EK) of consumers.

H2: The personal norms of consumers influence the purchase intention of eco-friendly paper

H3: The social norms of consumers influence the purchase intention of eco-friendly paper

H4: The environment-friendly attitude of consumers influences the purchase intention of eco-friendly paper.

H 5: The demographic characteristics cannot be used to explain purchase intention of consumers about green products.

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The structured questionnaire was designed to collect data. All the constructs were adopted and modified from earlier studies with regard to green consumer behavior. The sample size is 140 and the random sampling method is implemented for collecting responses. All the respondents belong to Siliguri and its surroundings, India. Sales Data are collected from area wise 20 wholesale store. The SPSS Version 20 is used for analyzing the data. The statistical tools like multiple regression, correlation, and descriptive statistics were applied to test the hypothesis. The dependent variable is purchase intention (PI) and all other variables are independent variables.

Analysis of Data a) Demographic Profile

Majority of the respondents belong to age group (25-34 years) i.e. 42%, followed by 25% (18-24 years), 24 % (35-50 years) and the remaining 8 % of the respondents are above 50 years. Out of 140 respondents 78 (56 %) are male and 62 (44%) are female. The respondents belong to different categories of occupation (student – 24%, private employee - 58%, Govt. employee – 8%, self-employed – 2%, others – 8%).

b) Reliability

The Cronbach's alpha value for six constructs i.e. for EB, EK, EA, SN, PN, and PI are 0.69, 0.75, 0.79, 0.95, 0.76, and 0.65 respectively. All the values of Cronbach's alpha which are above 0.60 are reliable for further analysis of data (Hair, Black, Babin, Anderson, & Tatham, 2011)

c) Hypotheses Testing and Results

H1: There is no relationship between environmental behavior (EB) and environmental knowledge (EK) of consumers.

Result: There is a significant relationship between environmental behavior and environmental Knowledge of consumers therefore the null hypothesis H1 is rejected.

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H2: The personal norms of consumers influence the purchase intention of eco-friendly paper

Result: There is a significant relationship between personal norms and purchase intention of consumers towards eco-friendly paper (beta value = 0.402, p value = 0.000 which is less than 0.05). The multiple regression analysis results are shown in Table 2. Hence the H2 is accepted.

H3: The social norms of consumers influence the purchase intention of eco-friendly paper

Result: There is no significant relationship between social norms and purchase intention of consumers (the beta value for social norms (SN) is 0.057 and p value = 0.438 which is above accepted level i.e. 0.05) see Table 2. Hence H3 is rejected.

H4: The environment-friendly attitude of consumers influences the purchase intention of eco friendly paper.

Result: There is significant relationship between environment-friendly attitude of consumers and their purchase intention regarding eco-friendly paper (beta value for EA is 0.415 and p value = 0.000 which is less than 0.05) see Table 2. Hence H4 is accepted.

H 5: The demographic characteristics cannot be used to explain purchase intention of consumers about green products.

Result: The p values of gender, age and occupation are 0.110, 0.331, 0.310 which are above acceptable value i.e. 0.05. The beta values of age and occupation are negative see Table 3. Hence H5 is accepted. Therefore demographic variables do not help in understanding the purchase intention of consumers with reference to green products.


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d) Paired-t-Test:TABLE SHOWING THE AREA-WISE SALES BEFORE AND AFTER CANOPY ACTIVITY

To determine whether Canopy activity has resulted in a significant increase in it's sales I used Paired t-test.Ho: There is no significant increase in salesH1: There is significant increase in sales.

Inference:

The critical value t for (8-1) = 7 df at 5% level of significance is 1.90. As calculated t value is greater than the critical region value, it falls in the rejection region. Therefore we reject the Ho and conclude that the canopy activity have significant increase in sales.Correlation and Regression Analysis:

Correlations: Sales rate and rating for In store Adv. and Trade Promotion.

Inference:

Sales rate and In store Adv & Trade Promotion are positively correlated (0.674). Therefore we can conclude that Sales occurs for In store Adv & Trade promotion.

Regression: Rating for In Store Adv. & Trade Promotion and Rating For Out Door Adv & Consumer Promotion

Model Summary Model R

R Square

Adjusted R

Square

Std. Error of the Estimate

1 .676a

.457

.393

1.363

a. Predictors: (Constant), Rating for In Store Adv. & Trade Promotion and Rating For Out Door Adv & Consumer Promotion


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Inference:

In the output, the adjusted R square =0.393, it means 39% can be explained by the regression.

a. Ho: â1=0

The coefficient for In Store Adv. & Trade Promotion =0.85, and P-value = 0.004 < 0.05, therefore we reject null hypothesis (Ho: â1=0) indicating it is statistically significant. So we can infer that In Store Adv. & Trade Promotion is highly positively correlated to the Sales Rate.

b. Ho: â2=0

The coefficient rating for Out Door Adv & Consumer Promotion =0.07, and P-value = 0.796 > 0.05, therefore we do not reject null hypothesis (Ho: â2=0) indicating it is not statistically significant. So we can't infer that the Out Door Adv & Consumer Promotion has anything to do with the Sales Rate.

In spite of large no. of population, paper consumption in India is far behind. As in India around 47% papers are manufactured from recycle paper so I chose this Paper Industry with special focus on Recycle Paper. The purpose of this study is to understand the variables affecting the consumer behavior while purchasing green products. Eco-friendly paper i.e. paper which is manufactured from used paper and reduces the harm to environment compared to manufacturing of traditional paper (virgin paper). The dependent factor is purchase intention and the independent factors are environmental behavior, attitude, knowledge and norms. The structured questionnaire was used collect primary data and analyzed using software package. From this research it is found that attitude and personal norms are positively influencing consumer purchase intention towards eco-friendly paper. This study helps the marketers to design strategies for sustaining in the competitive paper industry.

Managerial Implications

The marketers in the paper industry should formulate strategies for enhancing environmental knowledge of consumers especially eco-friendly paper. The businesses manufacturing eco-friendly paper should identify the

ANOVA a

Model Sum of Squares df

Mean Square

F

Sig.

1

Regression 26.599 2

13.300

7.155

.006b

Residual 31.601 17

1.859

Total 58.200 19

a. Dependent Variable: Sales Rateb. Predictors: (Constant), Rating for In Store Adv. & Trade Promotion and Rating For Out Door Adv & Consumer Promotion


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target market by psychographic segmentation. There will be potential demand for eco friendly paper in future because consumers are having positive attitude towards green products. The positive environmental attitude is influence in the purchase intention of consumers. Since computerization, digitalization is reducing demand for paper, the organizations in the paper industry are going to experience severe competition. The manufacturing of eco-friendly paper can be become a differentiation strategy for today's organizations in the paper industry. Hence effective psychographic segmentation of consumers can help the organization to sustain in the highly competitive paper industry. Best marketing, brand awareness activity of Eco Friendly paper in current scenario is “Advertisement”. For this company have to make branded selling point, Canopy activity at least once in a week, visibility at retail by standby, branding on & inside the retail counter and adds in media, newspaper & magazines. (i.e.: Pasting stickers, hanging banners, and balloons). Proper distribution of Latest Samples, offering Schemes, Cash Coupons, Discounts need to be developed to reduce misperception regarding quality of the product. According to me schemes such as activation of new retailers and they should consistently purchase minimum quantity of 5MT's./month for 3 months then the DSR will be rewarded by an amount of Rs.1000/ activation. This activity will definitely work in increasing the sales and motivates DSR's.

Conclusion

The purchase intention of consumers is influenced by psychographic variables. The consumers who have positive ecological behavior also possess knowledge about various green products like eco friendly paper. The consumers are influenced by personal norms than social norms while adopting environment-friendly products like eco-paper. The consumers with positive attitude about eco-friendly paper are strong purchase intention towards the product. The consumers purchase intention towards green products cannot be identified by demographic variables. This result is consistent with earlier studies (Straughan & Roberts, 1999). The consumers are independent in decision making and not influenced by others while adopting green products. Advertisement such as canopy activity increases the sales rate.

In Store Adv. and Trade promotion are more effective rather than consumer sales promotion and outdoor adv in order to generate sales.

Future Scope of Research

The consumer purchase intention will also be influenced by other factors like price, branding etc. Hence such factors can be included to know the impact of pricing strategies, branding strategies on purchase behavior of


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consumers. The future studies can also be conducted to understand how other factors like values, beliefs, past experiences of consumers with regard to green products influence the consumer behavior.

References

Akehurst, G., Afonso,C., & Goncalves, H. M. (2012). Re-examining green purchase behavior and the green consumer profile: new evidences. Management Decision

Bonini, S., & Oppenheim, J. (2008). Cultivating the Green Consumer. Stanford Social Innovation Review, 56-61.

Ha, H.-Y., & Janda, S. (2012). Predicting Consumer Intentions To Purchase Energy-Efficient Products. Journal of Consumer Marketing , 29 (7), 461-469.

Hair, Anderson, Tatham, & Black. (1996). Multivariate Data Analysis (4 ed.). NJ: Prentice Hall.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2011). Multivariate Data Analysis (6 ed.). Delhi: Pearson Education Inc.

IPMA. (n.d.). About Paper . Retrieved November 23, 2013, from Indian Paper Manufacturers Association: http://www.ipma.co.in/about_ipma.asp


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The Challenges of Personnel Management in the Panchayati Raj Institution


of Management



SITJM

Abstract:

To make local development more effective participation of local people is an important key element. Parliament or State Legislature sitting at central or state capital cannot manage the problems at the grass-root. Allotment of a fund along with a scheme absolutely unmatched with local condition cannot offer desired benefit to the target beneficiaries living in remote villages. To materialize this goal creation of an institutional arrangement for securing people's participation seemed essential, but revival of the old institutions of Panchayati Raj appeared more pragmatic. The outstanding feature of human resource management in a Gram Panchayat is that the tasks of recruitment, training and appointment are vested with the State Government. Thus, Gram Panchayat is not taken into consideration to propose its workforce requirement. The authors used secondary data from two select blocks for the purpose of the study. Study revealed that every Gram Panchayat has some difference in its volume of work. Hence it is absurd that every Gram Panchayat has the same number of personnel. As there are numerous and diversified functions, structure of job for each employee gets altered now and then. One important finding is that operational personnel are time-pressed and in some cases they have been found to work beyond their official hours. The study also brings to light that workforce at Gram Panchayat is less than the optimal requirement.


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Dr. Dipankar RudraAssistant ProfessorSalesian College, Siliguri CampusE-mail Id : [email protected]

Fr. George ChempakathinalVice PrincipalSalesian College, Siliguri CampusE-mail Id : [email protected]

Mr. Anirban GhoshAssistant ProfessorSalesian College, Siliguri Campus E-mail Id : [email protected]

Keywords: Workforce, Gram Panchayat , Human Resource

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1.1 Introduction:

To make local development more effective participation of local people is an important key element. Parliament or State Legislature sitting at central or state capital cannot manage the problems at the grass-root level. Allotment of fund along with a scheme absolutely unmatched with local condition cannot offer desired benefit to the target beneficiaries living in remote villages. What is necessary is to mobilize active involvement of local people through democratic institutions. They are required to formulate their own programmes and schemes, get them implemented be themselves through organized participation. To materialize this goal creation of an institutional arrangement for securing people's participation seemed essential, but revival of the old institutions of Panchayati Raj appeared more pragmatic.

The origin of Panchayati Raj Institution (PRI) as an institution of popular participation can be traced back to long past. It was culturally and logically involved with life of rural India. In the words of Gandhiji, panchayats represented small village republics. The British Government by its ruthless method of revenue collection almost destroyed these small republics ( Gandhiji 1947 ).

After independence the leaders of the time felt the need to revive the old concept of Panchayati Raj. The Article 40 (Directive Principles of State Policy) of the Constitution of India enshrined upon the states to take steps to organize Village Panchayats and endow them such necessary power as may enable them to function as units of self-government.” The major momentum towards the revival and empowerment of these institutions came from the 73rd Constitutional Amendment 1992.

73rd Constitutional Amendment 1992 outlined some general principles to be followed in every state in organizing Panchayati Raj System. The notable provisions of the amendment are as below:

i) Making of provision for representation of women and weaker section in Panchayat Bodies

ii) Inclusion of the Eleventh Schedule to the Constitution enlisting the functions to be done by PRIs

iii) Compulsory formation of State Finance Commission for

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recommendation of finances to be made available to PRIs and taxes to levied by them

iv) Holding of regular election to Panchayat Bodies and prescribing it as duty of the State Election Commission.

Through this institutional arrangement, power both financial and administrative, has now been delegated to rural people. They are now entrusted with the task of managing their own development. In almost all States these institutions have been organized through direct election. The principles of democracy are being practiced at the grass-root. Experience reveals that power to people through Panchayati Raj Institutions works very positively. In the States where PRIs have been actively involved, achievements are remarkable.

2.1 Personnel Management in the Panchayati Raj Institution:

Human Resource is an important part in every institution – private or public, manufacturing or public utility. Every institution must recruit, retain and manage the human resources well enough to run the organization; otherwise it will fail to achieve the objective for which it has been set up. Standard and quality of service highly depend on skill, orientation, training and motivation. So, these aspects have to be given maximum consideration with regular evaluation for better performance. In PRI granting new schemes and allocating ample money is not sufficient. Management of workforce for proper delivery of services has to be assigned due importance. Without developing personnel to meet the demands of society, delivery of good administration is impossible. So, adequate emphasis should be given on human resource planning, recruitment, training, development and motivation of sufficient workforce.

3.1 Objective of the Study:

In the context of the issues mentioned above, this paper seeks to make an in-depth study into various aspects of personnel management in the institutions of Gram Panchayats. The research questions are- how Personnel Management is practiced in the Panchayati Raj institutions at the operational level? Do these institutions have a unique Personnel management mechanism? Is the mechanism of organizing activities among the Personnel of Gram Panchayats is in conformity with the standard principles of personnel management as enumerated in the literature of management theory? The objectives of the study are:

i) Finding answer to the questions mentioned above and ii) Examining if the practice is consistent with the policy goals of the organization.


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4.1 Review of the Literature:

Koontz & Weihrich, (1998) observed that ever since people began forming groups to accomplish targets that they could not achieve as individuals. Management started evolve and gradually to gain greater importance. Now society has come to rely increasingly on group effort and organized groups have started to become large; hence task of management has become more challenging.

'Management is the use of people and other resources to accomplish objectives' Boone & Kurtz, (1992). It involves implementation of four basic functions such as planning, organizing, leading and controlling. As a part of Administrative Management Theory, Henri Fayol (1949) presented a normative and prescriptive model, which outlined the way managers should conduct their activity to reach the desired level of efficiency. He advocated fourteen principles of management, majority of which are dedicated to outlining the principles to be followed in designing a good organisation and leading the workforce.

Great emphasis is given on grass-root level participation in the nation's development process (Nazrul Islam, 2007). It is a way of increasing the effectiveness of development programmes by making the programmes more relevant and responsive to local needs and conditions; it allows greater flexibility in their implementation and providing ideal means of coordinating the various agencies involved at the regional or local level (Rondinelli, D and Cheema, G.S 1984; Conyers, 1983; Smith, 1985). Decentralization can provide better services to local preferences, strengthening local accountability and supporting local economic development (Baker, 1997).

The basic idea behind democratic decentralization is to involve people in their own development and 'train local leadership to assume higher responsibilities and serve people with efficiency'. The system ensures people's participation in planning and implementation; consequently governance becomes more participatory and more accountable and more effective and efficient (Conyers, 1983; Friedman, 1983; Manor, 1995; Haque, 1997).

Chakrabarti Bhaskar et al, (2011) make study on Gram Panchayats' coordination with line departments in rural West Bengal. The organization structure that they present has little policy relevance with operational mechanism of the PRIs. The study indeed covers robust survey of literature, but ends with no remedy or recommendation applicable in management of the grass-root institution.

Mandal A, (2011) and Buch Nirmala, (2012) make detailed analysis of the


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contours of Gram Sabha. According to them, as an immediate effect of 73rd Amendment to Constitution, the power of governing PRIs has been shifted to Gram Sabha. It has brought about a big a transmutation, initiated a significant breakthrough in the conventional representative form of governance. Through this enactment power has been handed over to people, instead of confining them to the hands of elected representatives. It has established an era of people's raj in place of orthodox raj of the elected representatives.

Mathew George, (2012) advocates the policy of involving political parties in the election of Panchayati Raj Institutions and presents the arguments that the idea of keeping local governance an apolitical institution is an idea. According to him local governance is linked with governance at state as well as union level. While Central and State Governments are based on political ideology, local government like Panchayats cannot stay detached from politics.

5.1 Methodology:

Case study method has been planned to be applied for the proposed study. Phansidewa Block and Rajganj Block were randomly selected from the districts of Darjeeling and Jalpaiguri respectively. The study aimed at making extensive study of all the Gram Panchayats located within the jurisdiction of the Development Blocks. The study was focused on Gram Panchayats, because it is the ultimate rural government that is organically involved with rural people and delivery of most of the services are made through this institution. Personal Interview of Gram Panchayats of personnel was conducted with a questionnaire. This was aimed at collecting data regarding various dimensions of Human Resources Management like recruitment, training and overall performance.

In addition to Field Work, literature of different areas like management, Panchayti Raj, rural development, and other materials related to the topic were consulted.

6.1 Findings:

6.2 Personnel Structure in Gram Panchayat: A Managerial Review

From field investigation it is observed that the organisation of a Gram Panchayat is consisting of a democratic structure dovetailed with an operational structure. The democratic structure is politically mandated and clearly set out in the W.B. Panchayat Act 1973. Besides this, to ensure participation of weaker sections and women, provisions for reservation of seats for scheduled caste, scheduled tribes and women have been made in the Panchayat Act of the state. It should be remembered that all these

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prescriptions stated so far in paragraph 4.6 are meant for formation of the democratic structure - village council, which generally is a decision making body. This decision-making body is again organized into various Upa-Samitis (sub-committees) as listed below:

i) Artha O Parikalpana Upa-Samiti

ii) Krishi O Pranisampad Bikas Upa-Samiti

iii) Siksha O Janasasthya Upa-Samiti

iv) Nari, Sishu Unnayan O Samaj Kalyan Upa-Samiti

v) Shilpa O Parikathamo Upa-Samiti, etc.

The above Upa-Samitis are virtually some functional sub-committees headed by a person called Sanchalak, meaning convener. These Upa-Samitis can be viewed as similar to ministries of union government.

Figure 1: Showing the Organisation Structure of Gram Panchayat

In the structure shown above the position of the Pradhan is located at the middle. The part above the position of the Pradhan shows the democratic structure, which consists of the members elected from various village constituencies. The lower part of the structure is operational structure. It consists of Pradhan and 'staff personnel' working under him. The decisions taken in various Upa-Samitis are subsequently forwarded to the Pradhan for implementation, who in turn uses the services of the staff personnel for implementation of the decisions. In West Bengal a Pradhan can use service of four personnel: those are Executive Assistant, Panchayat Secretary, Nirman Sahayak and a Sahayak. One additional Sahayak is due for those Panchayats, where MGNREGA related schemes are under implementation. Besides this, there is some Group D employees called Panchayat Karmis, who work as peon or record supplier. There is no job description in terms of rural development for them in the Gram Panchayat Administration Rules. Hence in the organisation structure they have not been assigned any position.

Nirman

SahayakSahayak

Panchayat

Secretary

Executive Assistant

Pradhan

The Village Council

Parikalpana

Upa-Samiti

Krishi

Upa-Samiti

Siksha

Upa-Samiti

Shilpa

Upa-Samiti

Nari O Sishu

Upa-Samiti


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6.3 Principles of Bureaucracy

The study records the State government's effort towards initiation of bureaucratic approach to organising the Gram Panchayats. This effort is reflected in the formulation of rigid guidelines as enumerated in the West Bengal Panchayat (Gram Panchayat Administration) Rules 2004. Max Weber (1947) advocates bureaucratic organisation, which is based on strict disciplines, rigid guidelines and clear job description. The West Bengal Panchayat (Gram Panchayat Administration) Rules 2004 contains the provisions, which are almost of bureaucratic in nature. According to these rules Panchayat personnel like Executive Assistant, Gram Panchayat Secretary, Job Assistant (or Nirman Sahayak) Sahayak of Gram Panchayat are subject to the direction and control of the Pradhan of the Gram Panchayat. Rules from 55A to 55D provide a clear outline how the personnel should work and what will be their assigned duties or job description. Given the twenty-nine tasks listed in the Eleventh Schedule to the constitution and the tasks delegated by the central and state government, it needs to be stated that since the Gram Panchayats do numerous tasks of non-repetitive nature, bureaucratic organisation is inapplicable to them.

6.4 Lapses in the Personnel Structure

Survey findings reveal that democratic structure of the Gram Panchayat, viz., the Village Council is duly defined as well as properly structured. However, operational structure is vaguely defined and inconsistently structured. The part of the organization structure placed under the Pradhan is distinctly a structure of staff organisation. Jobs assigned to the four Sahayaks are of the nature of measuring, record keeping, reporting and filing

In an organisation structure there are two components; these are line structure and staff structure. Line personnel are engaged in the main operational activities like procurement, production and selling. Staff personnel perform the support services like record keeping, reporting and advising. The extraordinary characteristic of the organization structure of Gram Panchayat is that there is no defined structure of line personnel. The real challenge is lying here. Elected representatives become puzzled to see that there is no defined person to shoulder the tasks of developments. As there is no structure of line personnel, the success of the GP entirely depends on Pradhan's skill in getting things done by people around him. In many Gram Panchayats the Pradhan makes the staff people perform the tasks of line personnel. In some cases where there is strong political will, the Pradhan uses his leadership skill to organize elected members as a coherent team committed to achieve the goal. Thus, the study unfolds some wonderful experience of democratic governance by Gram Panchayats.


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6.5 Existing Structure, Workload and Manpower

According to Porter, (1980) structure of an organization depends on the functions it does. In this perspective it appears reasonable to see the function and activities the PRIs are expected to perform. The 73rd constitutional amendment of 1992 annexed a schedule (Schedule XI) of twenty-nine areas of functions, including agriculture, irrigation, health and education to the Gram Panchayats. In addition to this, the Government of West Bengal has made a list of 15 different types of functions for the Gram Panchayats in the West Bengal Panchayat Act 1973. Those include sanitation, drainage, supply of drinking water, rural defence, community work, etc.

This is not the exhaustive list of the functions. The functions which have not been included in the list are literacy campaign, attestation, certificate issue, disaster management, relief and rehabilitation. Under pressing situation these institutions are compelled to do many functions, hitherto not enlisted anywhere. For example, local arbitration and dispute settlement is one of the major functions of Gram Panchayat; it is immaterial whether PRIs are empowered to do it or not, Panchayats used to do it in the long past and they are doing it still today.

There is a popular belief among the policy-makers that Panchayat is very cost effective and efficient instrument. Thus, many agencies and departments are eager to transfer more and more programmes to the PRIs without having any care for its time and ability. Roy Dipen, (2011) observes that given the limitations of existing Panchayat structure and the ever-expanding list of functions, PRIs may find it beyond their capacity. While they are able to perform some of the functions assigned to them, they are unable to implement many other tasks for want of time and manpower.

7.1 Summary and Conclusion:

Gram Panchayats are overburdened with dozens of tasks assigned to them, for which they need a good organisation structure. However, the study observes the presence of poorly manned limited operational structure. Roy Dipen, (2011) also notes similar observations. According to him, given the limitations of existing Panchayat structure and the ever-expanding list of functions, PRIs find it beyond their capacity. While they are able to perform some of the functions assigned to them, they are unable to implement many other dozens of tasks for want of time and manpower.

There are many flaws, confusions and conflicts in respect of Gram Panchayats' function of organising and governance. The paper tries to find a way how organising and governance can be made better at this grass-root level. We have recommended that the line departments should be directly


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placed under the control of Gram Panchayats. Obviously it needs formulation of new by-laws, procedures and manuals. It is hoped that newly recommended organisation will streamline the operations and resolve the confusions and difficulties faced by the elected representatives at the grass-root level.

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Manor, James 1995, 'Democratic Decentralization in Africa and Asia', IDS Bulletin 26 (2), April: pp.81-88.

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Porter, Michel E 1980, Competitive Strategy, The Free Press, New York.

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