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TECNIA INSTITUTE OF ADVANCED STUDIES(Approved by AICTE, Ministry of HRD, Govt. of India and affiliated to GGS Indraprastha University, Delhi.)

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TECNIAVol. 1, No. 2, October 06-March 07

Madhuban Chowk, Rohini, Delhi-110 085Ph.: 011-27555121-124, Fax: 011-27555120E-Mail: [email protected], Website: www.tiasindia.org


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Psychological Well-being of Budding Entrepreneurs

India’s Trade and Investment Opportunities in Africa

Strategic Marketing for Higher Education

Understanding the Agreement on Agriculture under World Trade Organisation

Credit Risk Management in Indian Banks: A Comparative Study

A Study of the Motivational Climate and Role Efficacy in Indian Call Centres

Role of Management Information System in Indian Universities

Salaam Mumbai and Salaam Mumbai Dabbawalas

M. Birasnav & S. Rangnekar

Madan Lal

P. Kameswara Rao

Anil P. Dongre

Swaranjeet Arora, Abhijeet Chatterjee & Anukool M. Hyde

Satish Seth & M.S. Turan

Sangeeta Gupta, H. Bansal & A. K. Saini

Sanjeev Bansal & D. Surekha Thakur

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Tecnia Institute of Advanced Studies (TIAS) was established in the year 1998 by Health and EducationSociety (Registered) to advance the cause of quality education in Management, Information Technologyand Mass Communication. It has since made commendable progress and stands today as an Institute ofexcellence in management and technical education, training, research, and consultancy services. TheInstitute is affiliated to G.G.S. Indraprastha University for conducting MBA, MCA, BBA, BJMC,programmes. The Institute is ISO 9001:2000 certified in recognition of its well established system,procedures and quality education and is rated as “A” category Institute byAIMA/Business Standard andBusiness India Surveys, September 2006. It is included in Top 100 B-Schools of India by Dalal StreetJournal in the year 2006.

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Tecnia Journal of Management StudiesVol. 1. No.2, October 06 - March 07

EDITORIAL ADVISORY BOARD

Prof. Christopher TurnerPro Vice-ChancellorThe University of WinchesterWest Hill, Winchester, U.K.

Prof. R. K. MittalProfessor & Dean, University School of Management StudiesGuru Gobind Singh Indraprastha University, Delhi.

Dr. Arun GoyalJournalist (WTO Expert)Director, Academy of Business Studies, Delhi.

Prof. Devender K. BanwetProfessor, Department of Management StudiesIndian Institute of Technology, New Delhi.

Prof. G. R. KulkarniFormer Director,Indian Institute of Management, Ahmedabad.

Prof. K. K. UppalFormer Professor, University Business SchoolPanjab University, Chandigarh.

Prof. K. L. JoharFormer Vice ChancellorGuru Jambheshwar University, Hisar.

Prof. N. K. JainHead, Department of Management StudiesJamia Millia Islamia University, New Delhi.

Prof. M. P. GuptaFormer Dean, Faculty of Management StudiesUniversity of Delhi, Delhi.

Prof. P. N. GuptaFormer Executive Director,DOEACC Society, New Delhi.

Editor:Dr. D. Antony

Editorial Committee:Prof. A. K. Sengupta,(Chairman, Editorial Committee)

Editorial Committee Members:Prof. A.K. SrivastavaProf. P. C. ChhabraProf. W. A. QaziDr. Urvashi Sharma

Editorial Consultant:Ms. Shreemoyee Patra

Admin. Coordinator:Mr. Parveen Kumar

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Published & Printed by Prof. Vikas Prakash, Dean (Academics), on behalf of Tecnia Institute of AdvancedStudies. Printed at Rakmo Press Pvt. Ltd., C-59, Okhla Industrial Area, Phase-I, New Delhi-110020. Publishedfrom Tecnia Institute of Advanced Studies, 3 PSP, Institutional Area, Madhuban Chowk, Rohini, Delhi-85.Editor: Dr. D. Antony.

PATRONSh. R.K.GuptaChairman,Tecnia Group of Institutions

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♦ Editor: Dr. D. Antony.

From The Editor’s DeskFrom The Editor’s DeskFrom The Editor’s DeskFrom The Editor’s DeskFrom The Editor’s Desk

India witnessed a remarkable transformation in its economic landscape in recent years. The era of economicreforms was accompanied by the virtual disappearance of the restrictive license-permit control regime andconsequent liberalisation of private initiative and enterprise. The fall out of liberalised policies, in fact, hadsignificant impact on several key sectors in the Indian economy. The Indian manufacturing sector, for instance,which had long been accustomed to a protected domestic regime now stood exposed to the relentless andharsh winds of competition both from within the country and abroad.

India has achieved a fair degree of success by implementing its reform agenda and this fact is reflected in manykey sectors of the economy. Significant achievements have been recorded in diverse manufacturing sectors likedrugs & pharma industries, automobile & ancillary industries, light engineering industries including electronics& software and textiles to mention a few. This would imply that the industry on its part has responded favorablyto the liberalised policies set in motion by the government by upgrading their technology, investing in R&D andrealising the need for higher degree of skills in a competitive world environment.

We are happy to launch the second issue of our academic journal, Tecnia Journal of Management Studies. Thisissue incorporates the following articles.

* Psychological Well-being of Budding Entrepreneurs.* India’s Trade and Investment Opportunities in Africa.* Strategic Marketing for Higher Education.* Understanding the Agreement on Agriculture under World Trade Organisation.* Credit Risk Management in Indian Banks: A Comparative Study.* A Study of the Motivational Climate and Role Efficacy in Indian Call Centres.* Role of Management Information System in Indian Universities.* Salaam Mumbai and Salaam Mumbai Dabbawalas.

My heartfelt thanks to the authors Mr. M. Birasnav, Dr. S. Rangnekar, Mr. Madan Lal, Dr. P. KameswaraRao, Prof. Anil P. Dongre, Mr. Swaranjeet Arora, Dr. Abhijeet Chatterjee, Dr. Anukool M. Hyde, Prof. SatishSeth, Dr. M.S. Turan, Ms. Sangeeta Gupta, Prof. H. Bansal, Dr. A. K. Saini, Prof. Sanjeev Bansal, Ms. D.Surekha Thakur, who have sent their manuscripts in time and extended their co-operation particularly infollowing the American Psychological Association (APA) Style Manual in the references.

I wish to sincerely thank our Chairman Sh. R. K. Gupta who has always been a guiding light and primeinspiration that led us to publish this Journal. I am grateful to Prof. A. K. Srivastava, Director, for his continuedencouragement for bringing out the journal in such a proper form. I am also grateful to Prof. A. K. Sengupta,Emeritus Professor & Chairman Editorial Committee for his advice and suggestions in shaping the Journal. Mysincere thanks to our distinguished reviewers Prof. P. C. Chhabra, Prof. W. A. Qazi & Dr. Urvashi Sharma fortheir untiring effort and support in bringing out this bi-annual Journal. I am grateful to Ms. Shreemoyee Patra forher editorial advice. Mr. Parveen Kumar deserves special mention for his assistance in integrating, editing andadministrating the work sincerely and efficiently.

I am sure the issue will generate immense interest among corporate practitioners, policy-makers, academiciansand students.

Dr. D. AntonyEditor

Contents

Psychological Well-being of Budding Entrepreneurs ......................................... 1– M. Birasnav & S. Rangnekar

India’s Trade and Investment Opportunities in Africa ...................................... 8– Madan Lal

Strategic Marketing for Higher Education ........................................................ 16– P. Kameswara Rao

Understanding the Agreement on Agriculture underWorld Trade Organisation .................................................................................. 25

– Anil P. Dongre

Credit Risk Management in Indian Banks: A Comparative Study ................... 30– Swaranjeet Arora, Abhijeet Chatterjee & Anukool M. Hyde

A Study of the Motivational Climate and Role Efficacy inIndian Call Centres ............................................................................................. 36

– Satish Seth & M.S. Turan

Role of Management Information System in Indian Universities ................... 45– Sangeeta Gupta, H. Bansal & A. K. Saini

Salaam Mumbai and Salaam Mumbai Dabbawalas ........................................... 52– Sanjeev Bansal & D. Surekha Thakur


M. Birasnav*S. Rangnekar**

Abstract:Abstract:Abstract:Abstract:Abstract: An entrepreneur is a person who decides to create wealth andadd value to the productive process. He/she tends to walk differently, march on his/her own path and is highly creative. Significant attention is given to entrepreneurshipas it reduces unemployment and creates wealth. This paper analyses the psychologicalwell-being of budding entrepreneurs by using Ryff’s model (questionnaire whichcomprises six factors, such as autonomy, environmental mastery, personal growth,positive relations with others, purpose in life and self-acceptance. The data collectedon the basis of these factors has been tested with different statistical tools to asample size of 64, (N = 64). The results indicate that budding entrepreneurs havea positive affect of psychological well-being. Age and educational qualification ofbudding entrepreneurs do not affect their psychological well-being.

*Mr. M. Birasnav, Research Scholar, Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee.

**Dr. S. Rangnekar, Assistant Professor, Department of Management Studies, Indian Institute of TechnologyRoorkee, Roorkee.

Tecnia Journal of Management Studies Vol.1 No.2 October 06 - March 07

NENENENENE of the priorities of the government is toencourage entrepreneurship as it gives animportant opportunity to create employment

and economic growth. The government allocatessubstantial fund to create entrepreneurs and encouragesall institutions to set up Science and TechnologyEntrepreneurship Parks (STEP) to create an institutionalmechanism to promote entrepreneurial culture amongstudents through Entrepreneurship DevelopmentProgramme(EDP). The STEP provides training tostudents who are willing to start a business withoutconsideration of the organisational size. In this paperwe refer to such students as budding entrepreneurs.

Ethnic network is an important medium throughwhich entrepreneurial skills and knowledge are transferredto budding the entrepreneurs. An informal vocationaleducation system, which stems from ethnic network,provides mentors as well as on the job training(Dana, 2001). This network facilitates the introductionof entrepreneurs to the wholesalers and warnings ofgovernment inspections.

In general, an entrepreneur has the followingtraits (Sexton et al., 1985):

i.i.i.i.i. moderate risk-taking propensity;ii.ii.ii.ii.ii. ability to tolerate ambiguity;iii.iii.iii.iii.iii. an internal locus of control;iv. iv. iv. iv. iv. high need for autonomy, dominance, independenceand self-esteem; and

v.v.v.v.v. a low need for conformity and support.

The entrepreneurs need autonomy to direct theresources of his/her organisation as well asindependence in decision-making. The entrepreneur’sgender plays an important role in determining thesetraits in the individual. Females have scoredsignificantly lower on two traits related to risk takingand energy level, and higher on two traits related toautonomy and change than males (Sexton et al.,1990). The environment, whether local, regional orglobal, is a major concern for many entrepreneurs.They see problems in our society’s system as wellas a lack of awareness at an individual level.Entrepreneurs need to set goals and accomplishthem through their own efforts. Entrepreneurs havealso to develop their potential continuously.

IntroductionIntroductionIntroductionIntroductionIntroduction

OOOOO


2 M. Birasnav and S. Rangnekar

A very interesting question that arises in ourminds nowadays is that how do we identify theentrepreneur who has positive or negative psychologicalwell-being? This significant question bears the solutionto many of the psychological problems that theentrepreneurs face. This study was carried out toidentify which psychological factors influence the well-being of budding entrepreneurs the most.

Literature ReviewLiterature ReviewLiterature ReviewLiterature ReviewLiterature ReviewTo better understand the emergence of

entrepreneurial activity in a given country, we needto complement the analysis of the psychological andnon-psychological characteristics of the individualentrepreneur. The psychological factors are creativity,tendency towards risk taking, need for achievement,desire for autonomy and independence, and searchfor power. The non-psychological factors are education,experience in creating firms, social position thatfacilitates the decision to exploit opportunities. Exploitingthese opportunities depend on how entrepreneurs liveand work (Cuervo, 2005).

Today all countries are paying special attentionto promote entrepreneurial activities. Entrepreneurialopportunities in Israel are well created and thusentrepreneurs there have a higher social status thanAmericans and Hungarians. The Israelis are greatrisk-takers while expressing the readiness to leave asecure job to establish a business. The Israelis andAmericans are also reported to be high on initiativeand independence than Hungarians (Pines et al.,2005). The lacunae of the educational system inIndia do not necessarily promote entrepreneurial thinking,creativity or innovation (Dana, 2001). New generationsof individuals, that is, budding entrepreneurs withtalent and excellent training, are being added tothese situations by educational institutions.

Entrialgo and others concluded that the individualswho best tolerate ambiguity are more innovative,willing to take a risk and present a more proactivebehaviour (Entrialgo et al., 2000). Similarly, thereare significant differences in the entrepreneurial orientationdepending on the tolerance for ambiguity. Buddingentrepreneurs are required to tolerate ambiguity indifferent situations; these are only tackled by propertraining provided by institutions to handle ambiguity.In relation to well-being, when adults in differentoccupational settings have been examined, loss ofemployment has been found to impact negatively onwell-being. For example, cross-sectional studiescontrasting unemployed with employed people haveidentified higher levels of psychological distress (Waterset al., 2002), depression and lower levels of self-esteem (Muller et al., 1993) in the unemployedgroups. The evidence for adults who were insecurelyconnected to part time jobs or intermittent work isthat they also differ on the level of well-beingdepending on their occupational status.

The government promotes entrepreneurship asit reduces unemployment in the country. Specifically,

men are more affected by unemployment than women(Theodossiou, 1998). Adolescents, without full-time paid work have shown poorer well-being thanadolescents who are doing full-time work (Morrell etal., 1994). Parasuraman and others examined threeindicators of entrepreneurial success and well-being:career satisfaction, family satisfaction and life stress.They concluded that gender influences the careersuccess and well-being of entrepreneurs primarilythrough its effect on time commitment to work andtime commitment to family. This is because womenentrepreneurs devote significantly more time to familythan men and men entrepreneurs devote more timeto work than women (Parasuraman et al., 1996).

Creed and others examined the well-being andcareer decision-making self-efficacy of adolescentsbefore and after leaving school. Leaving schoolimproved the well-being and confidence to someextent. One group was disadvantaged by havingpoorer well-being while at school, which predisposedthem to disadvantage in the labour market (Creed etal., 2003).We found that the Ryff’s model (Ryff,1989) for psychological well-being was suitable toidentify the type of budding entrepreneur’s psychologicalwell-being. Her model consists of six aspects:autonomy, environmental mastery, personal growth,positive relations with others, purpose in life andself-acceptance. These six aspects are well-suitedto different situations. This model has widely beenused by many researchers (Van Dierendonck, 2005;Vleioras et al., 2005; Lindfors et al., 2006; Chenget al., 2005; Kafka et al., 2002). The six aspectsof Ryff’s model are described below:

i .i .i .i .i . Autonomy: Being self-determined and independent;i i .i i .i i .i i .i i . Environmental mastery: Being able to choose orcreate contexts, which are appropriate to one’spsychological condition;

iii.iii.iii.iii.iii. Personal growth: Continuous development of one’spotential;

iv.iv.iv.iv.iv. Positive relations with others: Maintaining warmand trusting relationships and being able to love;

v .v .v .v .v . Purpose in life: Setting goals, intentions and asense of direction; and

vi.vi.vi.vi.vi. Self-acceptance: Having a positive opinion ofoneself.

All the above six aspects are important forbudding entrepreneurs to start a business and are,therefore, used for this study.

Objectives of the studyObjectives of the studyObjectives of the studyObjectives of the studyObjectives of the studyThe objectives of this study are:

i .i .i .i .i . To find out whether the budding entrepreneurshave positive or negative psychological well-being.

i i .i i .i i .i i .i i . To analyse the impact of entrepreneurship factors,mainly those affecting the status of psychologicalwell-being, on budding entrepreneurs.


3 Psychological Well- being of Budding Entrepreneurs

HypothesesHypothesesHypothesesHypothesesHypothesesThis paper tests the following three hypotheses:

H 1 :H 1 :H 1 :H 1 :H 1 : Budding entrepreneurs have a positive affectpsychological well-being.

H2 :H2 :H2 :H2 :H2 :The psychological well-being of buddingentrepreneurs is irrelevant to their educationalqualification.

H3 :H3 :H3 :H3 :H3 :Budding entrepreneurs who are more than 24years of age have a high level of positive affectpsychological well-being than those who areless than 24 years of age.

MethodologyMethodologyMethodologyMethodologyMethodologyQuestionnaireQuestionnaireQuestionnaireQuestionnaireQuestionnaire

The questionnaire used for the study comprisedsix dimensions. Each dimension had nine itemsdeveloped by Ryff concerning psychological well-being. One set of dimensions involved questions ofautonomy, the second set dealt with environmentalmastery, the third set concerned with personal growth,the fourth set was to measure positive relations withothers. The fifth set was to measure the purpose inlife, the sixth set dealt with self-acceptance. Thescores were graded as strongly agree, moderatelyagree, slightly agree, slightly disagree, moderatelydisagree and strongly disagree with the rating of 1 to6, respectively.

1. Autonomy1. Autonomy1. Autonomy1. Autonomy1. Autonomy

A budding entrepreneur’s autonomy means thathe/she is self-motivated, prefers an environmentwhere he/she has the freedom to act on goals ortasks with little or no direct supervision. He/she iscomfortable in personal responsibility for his/her actionand also he/she is willing to seek advice. Autonomyresists social pressures to think and act in certainways; evaluating oneself by personal standards. Forexample, one can say in such a situation, ‘I haveconfidence in my own opinions, even if they aredifferent from the way most other people think’.

2. Environmental mastery2. Environmental mastery2. Environmental mastery2. Environmental mastery2. Environmental mastery

Enterprises, whether small in size have cometo realize their market place in a dynamic and highlycomplex environment where customer expectationsand the approach to selling stand in sharp contrastto the domestic market. Success in the internationalarena is a formidable challenge for all organisations,especially for an early-stage company that mustfigure out ways to get close to the customer to beatthe competition and drive new revenue streams. Theenvironmental mastery of budding entrepreneurs meansfeeling competent and able to manage a complexenvironment; choosing or creating personally suitablecontexts. For example, one can say in such asituation, ‘I am good at managing the responsibilitiesof daily life’.

3. Personal growth3. Personal growth3. Personal growth3. Personal growth3. Personal growth

To survive in today’s competitive market, theenvironment entrepreneurs must know about the changesin technology to improve their knowledge and tokeep their employees aware of the changes. Personalgrowth in view of budding entrepreneurs is thefeeling of continued development; potential and beingopen to new experiences; feeling increasinglyknowledgeable and effective. For example, one cansay in such a situation, ‘For me, life has been acontinuous process of learning, changing and growth’.

4. Positive relations with others4. Positive relations with others4. Positive relations with others4. Positive relations with others4. Positive relations with others

An important part of an entrepreneur’s lifedepends on how he/she maintains relations withothers. The relationships are tested and used whenhe/she markets his/her products. The entrepreneur’srelationship with his/her employees decides theirorganisation productivity. The positive relations withothers mean having warm, satisfying, trustingrelationships; being concerned about others’ welfare;being capable of strong empathy, affection and intimacy;understanding the give and take aspect of humanrelationships. For example, one can say in such asituation, ‘People would describe me as a givingperson, willing to share my time with others’.

5. Purpose in life5. Purpose in life5. Purpose in life5. Purpose in life5. Purpose in life

An entrepreneur’s goal setting decides the directionin which his/her organisation is administering. Thismeans having goals and a sense of direction in life;feeling that both present and past experiences aremeaningful; holding beliefs that give purpose to life.For example, one may say in such a situation,‘Some people wander aimlessly through life; I amnot one of them’.

6. Self-acceptance6. Self-acceptance6. Self-acceptance6. Self-acceptance6. Self-acceptance

Self-acceptance means having a positive attitudetowards oneself, acknowledging and accepting multipleaspects of self; feeling positive about our past life.For example, one may say in such a situation,‘When I look at the story of my life, I am pleasedwith how things have turned out so far’.

The Ryff questionnaire used for the studycomprised both positive and negative psychologicalquestions. For the purpose of analysis, we separatedall the positive questions from the negative questionsand obtained the total score between them.

Respondents of the studyRespondents of the studyRespondents of the studyRespondents of the studyRespondents of the studyIndia needs more entrepreneurs in the current

competitive scenario. All leading technical institutions,such as Indian Institutes of Technology (IITs),established STEP to promote budding entrepreneursin the high-level scenario of on-campus recruitments.As many companies offer good package to students,developing risk-taking aptitudes among the studentsunder such protected environment is vital. For this


4

Table 1. Characteristics of the respondents inTable 1. Characteristics of the respondents inTable 1. Characteristics of the respondents inTable 1. Characteristics of the respondents inTable 1. Characteristics of the respondents inthe studythe studythe studythe studythe study

Figure 1. Educational qualification of theFigure 1. Educational qualification of theFigure 1. Educational qualification of theFigure 1. Educational qualification of theFigure 1. Educational qualification of theparticipantspart icipantspart icipantspart icipantspart icipants

Table 2. The mean and standard deviation of theTable 2. The mean and standard deviation of theTable 2. The mean and standard deviation of theTable 2. The mean and standard deviation of theTable 2. The mean and standard deviation of thesix aspects of psychological well-beingsix aspects of psychological well-beingsix aspects of psychological well-beingsix aspects of psychological well-beingsix aspects of psychological well-being

Dimensions Dimensions Dimensions Dimensions Dimensions Mean Mean Mean Mean Mean Standard Standard Standard Standard Standard deviation deviation deviation deviation deviation

Age (20-36 years) 24.00 2.68 Autonomy 04.58 0.76 Environmental mastery 04.58 0.73 Personal growth 05.11 0.78 Positive relations with others 05.01 0.76 Purpose in life 04.98 0.81 Self-acceptance 04.64 0.64

Aspects Aspects Aspects Aspects Aspects Cronbach’s Cronbach’s Cronbach’s Cronbach’s Cronbach’s ααααα (alpha)(alpha)(alpha)(alpha)(alpha)Autonomy 0.568Environmental mastery 0.672Personal growth 0.774Positive relations with others 0.874Purpose in life 0.728Self-acceptance 0.703

Table 3: The internal consistency coefficient ofTable 3: The internal consistency coefficient ofTable 3: The internal consistency coefficient ofTable 3: The internal consistency coefficient ofTable 3: The internal consistency coefficient ofthe six aspects of psychological well-beingthe six aspects of psychological well-beingthe six aspects of psychological well-beingthe six aspects of psychological well-beingthe six aspects of psychological well-being

M. Birasnav and S. Rangnekar

reason, STEP, IIT Roorkee, conducts EntrepreneurshipDevelopment Programme (EDP) every year. Accordingto McMullan and others the best entrepreneurshipprogrammes offer a lot more than just drafting businessplans (McMullan et al, 1998). People can beeducated to start business with a potential for growth.Even students who were not initially intending todevelop new businesses or become members of theentrepreneurial team of small growing firms findthemselves so directed, perhaps by the norms andexpectations of the group or perhaps by the contentof their studies. The number of students who hadshown interest and joined the EDP was 64. These64 students (men, 55; women, 9) who haveworking experience of 0 to 16 years, agreed toparticipate in this study.

This group had a median age of 24 years(minimum, 20; maximum, 36). The respondentswere studying Bachelor of Technology (B Tech),Master of Technology (M Tech), Master of BusinessAdministration (MBA), and Doctor of Philosophy(PhD) in IIT Roorkee, with a majority studying(MBA). The respondents first completed a formrequesting demographic information. Table 1 showsthe educational background of the respondents andtheir age level. The graphical representation of thenumber of participants and their educational qualificationsis shown in Figure 1.

VariablesVariablesVariablesVariablesVariables Frequency Frequency Frequency Frequency Frequency Percentage Percentage Percentage Percentage Percentage

GenderGenderGenderGenderGenderMale 55 85.94Female 9 14.06

Age (years)Age (years)Age (years)Age (years)Age (years)<21 2 03.1321-24 38 59.3825-30 22 34.37>30 2 03.13

EducationEducationEducationEducationEducationBTechBTechBTechBTechBTech

Male 4 06.25Female 0 00.00

MTechMTechMTechMTechMTechMale 6 09.38Female 1 01.56

MBAMBAMBAMBAMBAMale 39 60.94Female 8 12.50

PhDPhDPhDPhDPhDMale 6 09.38Female 0 00.00

Statistical analysisStatistical analysisStatistical analysisStatistical analysisStatistical analysisThe Analysis of Variance (ANOVA) was used

for the study to test the effects of psychologicalwell-being of MBA with others (BTech, MTech andPhD) based on their age below and above 25.The internal consistency of the questionnaires wascalculated by computing Cronbach’s á for each ofthe dimensions. All the tests were performed inStatistical Package for Social Science (SPSS)version12. Pearson’s correlation coefficients were computedto examine the inter-correlations between the differentdimensions of psychological well-being.

ResultsResultsResultsResultsResultsThe statistical analysis of the data shows that

there were generally significant differences betweenthe respondents in the sample on socio-demographic(age, sex, marital status) and socio-economic status(occupational status, income adequacy andeducation). Table 2 shows the mean and standarddeviation of the six aspects of psychological well-being. The aspects personal growth and positiverelations with others are rated high by buddingentrepreneurs. Least deviations on the responses ofstudents are found on all aspects excluding theirage.


5

A g eA g eA g eA g eA g e Au t o n omyAu t o n omyAu t o n omyAu t o n omyAu t o n omy Env i r onmen ta lEnv i r onmen ta lEnv i r onmen ta lEnv i r onmen ta lEnv i r onmen ta l Pe r s ona lPe r s ona lPe r s ona lPe r s ona lPe r s ona l Pos i t i v ePos i t i v ePos i t i v ePos i t i v ePos i t i v e P u r p o s ePu r p o s ePu r p o s ePu r p o s ePu r p o s e Se l f -Se l f -Se l f -Se l f -Se l f -mas t e r ymas t e r ymas t e r ymas t e r ymas t e r y g r ow t hg r ow t hg r ow t hg r ow t hg r ow t h re l a t i onsr e l a t i onsr e l a t i onsr e l a t i onsr e l a t i ons in li fein li fein li fein li fein li fe a c c e p t a n c ea c c e p t a n c ea c c e p t a n c ea c c e p t a n c ea c c e p t a n c e

Age 1 Autonomy -0.12 1 Environmental 0.10 0.16 1 mastery Personal growth 0.03 0.15 0.37** 1 Positive relations 0.01 0.11 0.42** 0.47** 1 Purpose in life 0.18 0.13 0.40** 0.35* 0.37* 1 Self-acceptance 0.08 0.24 0.32* 0.36** 0.49** -0.007 1 Notes: * Correlation is significant at the 0.05 level (2-tailed) ** Correlation is significant at the 0.01 level (2-tailed)

Table 4. Correlation analysis of the six aspects of psychological well-beingTable 4. Correlation analysis of the six aspects of psychological well-beingTable 4. Correlation analysis of the six aspects of psychological well-beingTable 4. Correlation analysis of the six aspects of psychological well-beingTable 4. Correlation analysis of the six aspects of psychological well-being

Note: A=autonomy; B=environmental mastery; C=personal growth;D=positive relations with others; E=purpose in life; F=self-acceptance.

Figure 2. The mean and quartiles of positiveFigure 2. The mean and quartiles of positiveFigure 2. The mean and quartiles of positiveFigure 2. The mean and quartiles of positiveFigure 2. The mean and quartiles of positiveaffect psychological well-beingaffect psychological well-beingaffect psychological well-beingaffect psychological well-beingaffect psychological well-being

Psychological Well- being of Budding Entrepreneurs

The internal consistency coefficient (Cronbach’α) of the six aspects of psychological well-beingquestionnaire is presented in Table 3. The Cronbach’sα of all aspects of psychological well-being is rangedfrom 0.568 to 0.874 and it is found by SPSS12.0. The alpha value of autonomy 0.568 is nearerto the lowest acceptability of alpha value 0.6.

The central question of this study concerningpositive or negative affect psychological well-beingwas explored by comparing the distribution of answersto each of the questions by the respondent groupsas a whole. For instance, respondents were askedwhether during the last two days they had feltisolate from others or excited by something. Thisanalysis showed that individuals vary along twodimensions already mentioned above, one is positiveaffect and other is negative affect. These twodimensions were independent of each other. It also

predict an individual’s score on the negative affectdimension from any knowledge of his score on thepositive affect dimension and vice versa. On theother hand, both dimensions were related in theexpected direction to overall self-ratings of happiness.The best predictor of the overall self-rating was thediscrepancy between the two scores: the greater theexcess of positive over negative affect, the higherthe overall rating of psychological well-being.

In Figure 2, the box plot diagram shows themean and quartiles of the six aspects of psychologicalwell-being. The mean of personal growth is higherthan other aspects. This means that the buddingentrepreneurs are giving greater significance to personalgrowth than other entrepreneurs.

Table 4 shows the correlation analysis of thesix aspects of psychological well-being. Age andautonomy of the budding entrepreneurs are notcorrelated with any other aspects of well-being. Theaspect of positive relationship with others is significantlycorrelated with environmental mastery (r = 0.42,p<0.01), personal growth (r = 0.47, p<0.01),and self-acceptance (r = 0.49, p<0.01).

DiscussionDiscussionDiscussionDiscussionDiscussionThe analysis of the Ryff questionnaire showed

that the mean score of the positive psychologicalwell-being was 4.82 with the standard deviation of0.47. The mean score of the negative psychologicalwell-being was 1.57 with the standard deviation of0.55.

The result supported the hypothesis H1 that thebudding entrepreneurs have positive affect psychologicalwell-being. Budding entrepreneurs reported autonomyas a significant factor on their roles. They nevertend to be influenced by what others think of them.It is not difficult for them to voice their opinions incontroversial matters. According to Sexton (Sextonet al, 1985) and Cuervo (2005), entrepreneursneed high autonomy to direct the resources in his/her organisation. It is important to know what thishypothesis says. It says that the budding entrepreneursare continuously involved in activities, which expandstheir horizons. The results also support Dana’sethnic network importance for entrepreneurship (Dana,2001). It means that they had utilised opportunitiesfor mutual interaction with their family members as


6 M. Birasnav and S. Rangnekar

well as relations. This ethnic network suggests theinformal role of mentor to budding entrepreneurs.They set up goals and knew what would be achieved.This psychology of budding entrepreneurs did notdiffer with entrepreneurs.

The hypothesis H2, which assumes that thepsychological well-being of budding entrepreneurs isirrelevant to their course of study, is supported bythe samples of budding entrepreneurs (F=1.19,p=0.32). They had no different feeling aboutpsychological well-being. The course of study BTech,MTech, MBA or PhD does not affect the psychologicalwell-being of entrepreneurs as they have the samefeelings. To start a business and run it successfully,entrepreneurs need different skills rather than theirpsychological state. The course of study abruptlyimproves the knowledge of students rather than theirpsychology. So we can say that the degree forwhich the budding entrepreneurs study never affecttheir psychological well-being.

This study does not support the hypothesisH3, which says that the budding entrepreneurs whoare of more than 24 years of age have a high levelof positive affect psychological well-being than thosewho are less than 24 years of age. The respondentsof this study who were of less than 24 years of agewere all budding entrepreneurs and they also hadnot started any business. They attended only theEDP. So they had same feelings of autonomy,positive relations with others and so on as those ofmore than 24 years of age. Age does not influencepsychological well-being of budding entrepreneurs.

We made an attempt to include the age of thebudding entrepreneurs to find the correlation with theaspects of psychological well-being. The correlationanalysis (Table 3) showed no correlation of age(standard deviation was 2.68) and autonomy overentire aspects of psychological well-being. Correlationof environmental mastery over the personal growth(r=0.37), purpose in life (r=0.40) and positiverelations with others (r=0.42) was positive. Whenthe budding entrepreneurs fit very well with theirneighbours or community, they can come to know ofsome useful activities, which certainly expands theirhorizon. This leads to personal growth because ofthe interaction with the community and the communitysees them as affectionate persons. When they interactwith others, particularly older people, they may getsuggestions for solving many of their problems andmay experience confidence and become active tosolve that problem.

Thus, budding entrepreneurs not only feel thatthey are active, they are also confident when interactingwith others. Personal growth is positively correlatedwith purpose in life (r=0.35), positive relationswith others (r=0.47) and self-acceptance (r=0.36).When the budding entrepreneurs are active in settingup plans and goals, they certainly feel an improvementwithin themselves. When they are confident aboutachieving these goals, others want to keep warmrelations with them.

ConclusionConclusionConclusionConclusionConclusionThis study analysed the psychological well-

being of budding entrepreneurs with the effect oftheir age. In relation with earlier studies, it wasfound that personal growth had an important role forpsychological well-being of budding entrepreneurs.The study was carried out using the data collectedfrom the students who attended the EDP conductedat IIT Roorkee with the sample size of 64. Thispaper answered all the three hypotheses. Afteranalysing the samples we concluded that all thestudents as budding entrepreneurs have positiveaffect psychological well-being. The interesting findingsof the relations of course study with psychologicalwell-being showed that they were unrelated. Thismeant that the psychological well-being of buddingentrepreneurs was irrelevant to their course of study.This paper also answered the question related tothe age of budding entrepreneurs. They have samelevel of positive affect psychological well-being withthe consideration of age. Age is not a bar tomeasure the psychological well-being of entrepreneurswho is in the budding stage. The entrepreneurialskills can be developed irrespective of age andeducational qualification. Personal growth played animportant role among the budding entrepreneurs fromall the aspects of psychological well-being. Correlationof personal growth over positive relations with othersshowed that keeping good relations with their neighboursimproved their personal growth through usefulinteraction. When they fitted in with their neighboursor community, they expanded their horizon.

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India’s Trade and Investment Opportunitiesin Africa

Abstract:Abstract:Abstract:Abstract:Abstract: Commercial activities have not grown commensurately betweenIndia and the African continent despite this continent providing many trade andinvestment opportunities. This paper focuses on India’s recent trade andinvestment initiatives in Africa. It was found that Africa’s exports are predominantlyprimary commodities, accounting for more than two-thirds of all African exports.The growing manufacturing sectors of these countries increasingly depend onimported components. Transportation and communication equipments are majorimports in addition to food products. Regional trading arrangements areenvisaged to foster trade and investment relations among member-countries byremoval of tariffs and other impediments to intra-regional trade flows. There hasbeen a further wave of FDI-friendly measures to attract more FDI into Africancountries. India’s investment in the African countries has been in the area offertilizers, cement, pharmaceutical, oil and gas, and auto components. It issuggested that private-sector development strategies would help African countriesto build up industrial and technological capabilities.

Madan Lal*

IntroductionIntroductionIntroductionIntroductionIntroductionRADERADERADERADERADE and investment are important meansof commercial relations in the present contextof economic affairs between two trading

partners. India and the countries of the Africancontinent have traditionally had close and cordialrelations. However, commercial relations have not growncommensurately. The reason could be explained interms of the distance, language barriers, inadequacyof information about business opportunities, incidenceof civil strife, macro-economic instability and themodest progress made in liberalisation and privatisation.

The region of sub-Saharan Africa has greatdiversities with 54 states, including 34 least developedcountries (LDCs) of this region sharing many commoncharacteristics They range significantly in terms ofpopulation, size and economies of scale. Theeconomies of sub-Saharan Africa are, for the mostpart, small and fragile and, as a result, the regionis being left behind in the race of global economy.

The economic scenario of the sub-Saharanregion has been sombre by any economic or socialindicator when the four major developing regions ofthe world, viz., sub-Saharan Africa, East Asia,South Asia, and Latin America are compared. It has

the second lowest gross domestic product (GDP)per capita growth rate, the lowest average life expectancyof 50 plus years, lower secondary school enrolmentrate, the lowest literacy rate, the lowest number ofchildren immunised against childhood diseases, andthe lowest daily caloric intake.

The African continent accounts for 12.4 percent of the global population, 3.2 per cent of theglobal GDP and 2 per cent of world exports ingoods and services. Besides, it has the highest rateof infant morality and the highest percentage ofpeople living just under the international poverty line.As reported, about 43 per cent of the population ofsub-Saharan Africa is subsisting on incomes of lessthan US$350 per annum (UNIDO, 2004).

Altogether the African continent provides myriadopportunities for trade and investment because of itspopulation (700 million) and with rich naturalresources. Of the 54 countries of sub-Saharan Africa,India’s trade is with 15 countries, which includeBenin, Congo, Ethiopia, Ghana, Guinea Bissaa,Kenya, Mauritius, Mozambique, Niger, Nigeria, Senegal,South Africa, Sudan, Tanzania, and Uganda. Thesecountries together constitute about 3 per cent of

TTTTT

*Mr. Madan Lal, Research Officer, Indian Institute of Foreign Trade, New Delhi.



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India’s trade. In a bid to increase bilateral trade andinvestment India is focusing on seven African countries,viz., Ghana, Nigeria, South Africa, Tanzania, Kenya,Ethiopia and Mauritius. India has now expanded theprogramme to cover the entire continent of Africa,including six north African countries viz., Algeria,Egypt, Libya, Morocco, Sudan and Tunisia. Thispaper focuses on India’s recent trade and investmentinitiatives in Africa.

Africa’s composition of tradeAfrica’s composition of tradeAfrica’s composition of tradeAfrica’s composition of tradeAfrica’s composition of tradeAfrica’s exports are predominantly the primary

commodities; these account for more than two-thirdsof all African exports. Chief among them is crude oil,Africa’s single largest exported product. Many Africancountries export other mineral and mining products,as well as agricultural and fishery products. Recently,some African countries have become more prominentas exporters of manufactured products, most notably,textiles and apparel. Africa’s southern and northernsub-regions have growing industrial sectors whoseproducts range well beyond textiles and apparel.South Africa, in particular, has emerged as animportant regional industrial hub, with increasing exportsof automobiles to the rest of the world.

Compared to its exports profile, Africa’s importtrading partners are more diverse, encompassingcountries around the world. Products that support thefundamental economic activities of African countries,such as transportation and communication equipments,are among the continent’s major imports. Food productsare another significant import. On the other hand,these African countries with growing manufacturingsectors increasingly depend on import componentproducts. African import data show that the increasinglyindustrialised countries in Africa have emerged aspart of the global supply chains in their respectivesectors.

Asia has emerged as an important partner inAfrica’s trade and development. Africa’s exports toAsia grew significantly. Also, Asia’s developingeconomies have increased their imports from Africancountries significantly. In fact, Asia’s imports fromAfrica outpaced its imports from other regions. Countriessuch as India, China and Taiwan have significantlyincreased the overall volume of their African imports.(World Bank, 2004)

Africa’s exports to Asia are mainly driven byprimary commodities and related products. As withAfrica’s exports to the European Union (EU) andthe United States of America (USA), oil and oilrelated products account for a large share of thecontinent’s exports to Asia. However, other primarycommodities, such as agricultural and fishery products,and minerals and crude materials are also increasinglybeing exported to Asia.

Africa’s exports of mineral fuels and other rawmaterials, such as mineral and mining products toAsia have experienced strong growth because ofrising manufacturing sectors in Asia, particularly inChina, India, Korea, Taiwan and South-East Asian

countries, such as Indonesia, Malaysia, the Philippines,Singapore and Thailand.

A limited number of African countries are endowedwith mineral and mining resources, a wide range ofnon-oil-producing countries also benefit from othertypes of raw materials and processed raw materials,such as cotton, wood, and leather as well as foodand agricultural commodities, for expanding their exportpotentials. The growth in African exports of food andagricultural commodities to Asia is due to the largepopulations with growing income levels in the Asiancountries. Non-essential foods such as coffee, cocoa,tea and nuts are experiencing stronger demand inAsia than in the already saturated markets of thedeveloped countries.

Asia is emerging as a strategic target indiversifying the markets of African products. Thescope of value-added processing in Africa is stilllimited. This could be developed through linkagesand developing consumer relations with Asian countriesand African producers/exporters.

Market diversification is not the only benefit ofdeepened trade relations between the two regions.Asia can also contribute to Africa’s quest for productdiversification in its export structure. South Africa hasrecently shown a growth in its manufacturing exportto Asian countries. Similarly, the Asian countries areproviding essential inputs to Africa’s growingmanufacturing sector, particularly its textile and apparelsectors, and in some cases, its automobile sector.There is a positive relationship between Africa’sgrowth in manufacturing exports to the EU and USAand growth in imports from Asia.

India’s composition of trade with AfricaIndia’s composition of trade with AfricaIndia’s composition of trade with AfricaIndia’s composition of trade with AfricaIndia’s composition of trade with AfricaIndia’s trade with sub-Saharan African countries

is shown in Table 1. Table 2 shows India trade withselected countries of Africa. As shown in Table 1,India’s total trade with sub-Saharan countries increasedfrom Rs. 1,55,556 million in 2000-01 to Rs.327,524 million in 2004-05, registering a growthof 200.1 per cent during the period. Similarly India’sexports increased from Rs. 82,299 million to Rs.1,82,574 million, registering an increase of 121.84per cent during the period. Imports from these countriesalso increased from Rs. 73,257 million to Rs.1,44,950 million, registering an increase of 97.87per cent during the same period. All the years,2000-01 to 2004-05, India had favourable balanceof trade except in 2002-03, when it had tradedeficit of Rs. 20,882 million.

India’s composition of trade with Africa consistsof traditional and non-traditional items. In the categoryof traditional items, mainly tea/coffee, pulses, rice(basmati/non-basmati), wheat, cereals, dairy products,spices, fruits and vegetables, marine/meat productsetc., are included. Products included in non-traditionalcategory are leather and leather products, dyes/intermediates and coal tar chemicals, drugs/pharmaceutical and fine chemicals, residual chemicaland allied products, non-ferrous metals, manufactures



11

some cases, the arrangement also aims at fosteringcommon economic and monetary union amongst memberstates, as also a common currency. Some of theRTAs are East African Community (EAC); EconomicCommunity of Central African States (ECCAS);Economic Community of West African States(ECOWAS); Southern African Development Community(SADC).

Taking forward the theme of ‘Expanding Horizons’with the objective of recognizing the immense potentialto step up trade and investment between Africa andIndia, a conclave on India-Africa project partnershipfocused on (Eximius, 2005):

Reaffirming the commitment of the Government ofIndia towards a strong partnership with Africancountries;

Projecting the capabilities, range and depth ofIndian industry in the relevant sectors;

Providing a platform to deliver opportunities to thesmall and medium segment of the Indian industry;

Discussing Indian participation in specific Africanprojects;

Facilitating interaction with the institutions for along-term involvement in capacity building for thecountries – a critical need for sustainable developmentin Africa;

Facilitation – focused and individualised businessdiscussion among the visiting decision-makers andIndian industry in various sectors;

Providing a platform strengthened by the involvementof the appropriate industries, to have relevant andfocused discussions by the private sector participants,banks and financial institutions, as well as theparticipants from the governments.

The conclave saw an effort to reduce dependenceof the African nations on Western sources of technology,products and services in their developmental processesand to enable Indian technical consultants and projectdevelopers to take advantage of the opportunities.The focus on sectoral projects helped both India andAfrica to identify specific and concrete partnershipopportunities. This conclave focused on projectpartnerships in the following sectors and, in particular,the SMEs in each sector:

i .i .i .i .i . Project consultancy and risk managementi i .i i .i i .i i .i i . Power and energyi i i .i i i .i i i .i i i .i i i . Consultancy, transporti v .i v .i v .i v .i v . Information and communication technologyv .v .v .v .v . Watershed managementv i .v i .v i .v i .v i . SME projectsv i i .v i i .v i i .v i i .v i i . Constructionviii.viii.viii.viii.viii. Agriculture and food processingi x .i x .i x .i x .i x . Healthcarex .x .x .x .x . Pharmaceutical

The Indian industry was represented in thefollowing sectors in the conclave:

i .i .i .i .i . Agriculture and agro-processingi i .i i .i i .i i .i i . Small and medium industryi i i .i i i .i i i .i i i .i i i . Transport and transport infrastructurei v .i v .i v .i v .i v . Construction, roads and bridgesv .v .v .v .v . Housingv i .v i .v i .v i .v i . Power and energyv i i .v i i .v i i .v i i .v i i . Water and sanitationviii.viii.viii.viii.viii. Healthcarei x .i x .i x .i x .i x . Turnkey projects in the core sectorx .x .x .x .x . Turnkey manufacturing projects in the private

sectorx i .x i .x i .x i .x i . Information and communication technologyx i i .x i i .x i i .x i i .x i i . Consultancy

The conclave has established itself as a strongplatform to project Indian capacities and capabilitiesto the African markets, and provided an excellentmodel for partnership between the government andthe private sector and gave a strategic thrust to theindustry’s need for accessing new opportunities forproject partnerships with Africa.

Foreign investment in AfricaForeign investment in AfricaForeign investment in AfricaForeign investment in AfricaForeign investment in AfricaAfrica is known for its natural resources. The

high prices of minerals, such as copper, diamonds,gold and platinum and, particularly, oil, along withthe consequent improved profitability of investment innatural resources encouraged many transnationalcorporations (TNCs) in the African region.

Africa’s foreign direct investment (FDI) inflowsremained at the relatively high levels, rose fromUS$8 billion in 1995 to US$20 billion in 2004.Although inflows in 2004 were relatively high, Africa’sshare in world FDI inflows remained small at 3 percent. Most of the inflows were in natural resourceexploitation, spurred by rising commodity prices. Theprofitability of natural resource exploitation in theregion increased, which also induced the TNCs toengage in cross-border merger and acquisitions(M&As) in the primary sector. The composition ofFDI inflows in Africa in 2004 was significantly tiltedtowards natural resources, particularly in the petroleumindustry (UNCTAD, 2005).

Inflows rose in 40 out of the 53 countries inAfrica and fell in 13, including some of the region’stop FDI recipients such as Angola, Morocco andNigeria. The five top countries for FDI in Africa in2004 were France, the Netherlands, South Africa,the UK and the USA, together accounting for wellover half of the flows to the region.

Among the different sub-regions, North Africaattracted the highest inflows in 2004, with all thecountries in the sub-region, except Libya, on the listof the top 10 host countries for FDI in Africa. Thesub-region attracted 29 per cent of Africa’s totalinflows, particularly in oil and gas; Sudan topped thelist, mainly as a result of FDI in petroleum fromChina, India and Malaysia. Oil and natural gas



12

exploitation also contributed to inflows to Algeria andEgypt.

East Africa and West Africa also received higherinflows in 2004, but these inflows declined in CentralAfrica and Southern Africa.

Rising oil prices contributed to relatively highlevels of FDI inflows to the major oil-producingAfrican countries, especially Sudan and EquatorialGuineas. Although FDI inflows decreased in Angolaand Nigeria, the levels, nevertheless, remained highin those countries. These four countries, togetherwith Egypt, were the top recipients of FDI to Africain 2004. With over US$1 billion each in inflows,their combined total amounted to US$8.6 billion (ora little under 50 per cent of Africa’s total inflows),while the top ten host countries accounted for 69 percent in 2004.

In 2004, cross-border M&As in all industriesin Africa decreased from US$6427 million 2003 toUS$4595 million in 2004, registering a fall of 28per cent. About 63.5 per cent of the cross-borderM&As was related to mining activities and amountedto US$2918 million. Manufacturing amounted toUS$1144 million, having a share of 24.9 per cent,and relatively to services sector, it amounted toUS$533 million with a share of 11.6 per cent in2004.

FDI outflows from Africa more than doubled toUS$2.8 billion in 2004. About 57 per cent ofoutflows was the result of cross-border acquisitionsby TNCs from South Africa, following an increasinglyliberalised outward investment policy in that country.For instance, Anglo Gold (South Africa) purchasedAshanti Goldfields (Ghana), which has major FDIprojects in Guinea, Tanzania and Zimbabwe, GoldFields (South Africa) acquired IAMGOLD (Canada).In another deal, Allied Technologies (South Africa)acquired the Econet Wireless Group of Botswana.TNCs from some other African countries are alsoinvesting within and outside the region. Examplesinclude the expansion of all operations of OrascomTelecom Holding (Egypt) into Iraq and other Asiancountries, and the expansion of production by OrientalResources of Nigeria in Chad, Algeria, Egypt andSouth Africa together accounted for 81 per cent ofthe FDI outflows from Africa in 2004.

In terms of policy changes, there has been afurther wave of FDI-friendly measures and initiativesat the national, regional and global levels to attractmore FDI into African countries.

Policy initiatives and prospects inPolicy initiatives and prospects inPolicy initiatives and prospects inPolicy initiatives and prospects inPolicy initiatives and prospects inAfricaAfricaAfricaAfricaAfrica

In terms of policy changes, there has been afurther wave of FDI-friendly measures and initiativesat the national, regional and global levels to attractmore FDI into African countries. Most of these measuresfocused on liberalising legal frameworks and improvingthe investment climate.

Egypt, the Libyan Arab Jamahiriya and Mauritiusintroduced at least four policy changes each. Amongthe countries implementing policy reform, Algeria, theDemocratic Republic of the Congo, Egypt, Ghana,Madagascar, Mauritania, Tanzania and Ugandagenerally simplified aspects of their FDI regulations,including through the establishment of more transparentFDI regimes. Nigeria implemented reforms allowingforeign banks to merge with local commercial banks.The Democratic Republic of the Congo and theUnited Republic of Tanzania reduced the levels oftax and royalty payments. Other specific changesincluded the adoption in Egypt of an antitrust law aspart of a concerted drive to improve the country’sbusiness environment, and the announcement by theCentral Bank of Zimbabwe of a new guarantee topay back the entire capital within three months ifinvestors decided to leave.

Many African countries also stepped up theirinvestment promotion efforts in 2004. For example,Egypt initiated a number of investment procedures; itis also reviewing the fiscal regime. In addition, it isrestructuring the General Authority for Investment andFree Zones. Similar efforts are under way in Moroccoregarding the Investment Directorate. A number ofcountries, including Egypt, Morocco and Tunisia, aretrying to promote their countries as investmentdestinations through the organization of investors’meetings and annual conferences.

Various bilateral, regional and multilateral treatieswere also concluded, which complemented nationalregulations for promoting FDI. African countries concluded33 new bilateral investment treaties (BITs) and 15new double taxation treaties (DTTs) in 2004.These brought the cumulative numbers of BITs andDTTs for the region to 615404, respectively.

The Government of the USA amended keyprovisions of the African Growth and Opportunity Act(AGOA) in 2004 that allow more flexible rules oforigin. From 2005, however, with the ending of thequotas limiting some countries’ exports under theWorld Trade Organization’s (WTO) Agreement onTextiles and Clothing (ACT) the preferential advantageprovided by the AGOA may not suffice to attract FDIinto textiles and clothing. There will be increasedcompetition, especially from Asian countries, the exportsof which were previously restricted by the quotas.

In 2004, the Multilateral Investment GuaranteeAgency (MIGA) of the World Bank, through itsguarantee programme, supported four new FDI projectsin power generation, business services, banking andIT services, and undertook 28 technical assistanceactivities in the region. At the same time, the AfricanTrade Insurance Agency, the region’s only pan-African multilateral import and export credit and politicalrisk guarantee agency, adopted measures to protectforeign investors in Africa against trade risks. Theregion now has better market access [as a result ofthe Everything but Arms (EBA) initiative of the EU],Japan’s 99 per cent rule for LDCs. The AGOA, theGSP, and national policies are more stable. Despitethese measures and efforts, African countries’ capacityto target FDI strategically in manufacturing and services

Madan Lal


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has been constrained by economic and social factors.Impediments range from small market size and poorregulation to meagre financial resources and lowskills.

The continued low levels of FDI in manufacturingin many African countries are explained by two mainfactors: a failure to move rapidly on developingeconomic and social policies that are important forFDI inflows (as well as on development in general);and years of reforms in the 1980s that placedinsufficient emphasis on capacity building. As a result,the international market-access measures and initiativesprovided for African countries have not been verysuccessful in attracting FDI, particularly in manufacturing,given the lack of capacity to exploit FDI in a numberof countries. The future of FDI in Africa’s developmentlies in an integrated and genuine partnership betweenthe private sector and governments to strengthenhuman resource capabilities.

India’s investment perspectives in AfricaIndia’s investment perspectives in AfricaIndia’s investment perspectives in AfricaIndia’s investment perspectives in AfricaIndia’s investment perspectives in AfricaIndia is the third Asian country which is rapidly

growing in importance as an investment source inAfrica. India’s investment initiatives have been in thearea of fertilizer, cement, pharmaceutical, oil andgas and auto components. Some of the latest investmentare seen in these areas.

Illustrating some recent investment initiatives inAfrica is India’s emergence as the fastest growinginvestor country in Egypt. While the Japanese andSouth Korea companies have an established presencein Egypt, Indian companies in textile, fertilizer andcement ventures are driving the actual growth in FDIinfusions. Some 82 Indian companies have so farpumped in FDI into Egypt, of which 16 had establisheda local presence under GAFI regimes. India enteredan agreement with Egypt in 1997 for promotion andreciprocal protection of investments (The EconomicTimes, 2006).

Some of the top Indian corporates in Egypt arethe Birla Group, which runs the Indo-Egyptian JV;Alexandria Carbon Black; Carbon Black Plant; state-owned IFFCO (Indian Farmers Fertilizer Cooperation),which recently invested in a mega fertilizer venture;the Indo-Rama group, which is involved in a US$160-million chemicals venture with an Egyptian holdingcompany for gas; and the International FinancialCorporation (IFC), a multilateral financing agencyunder the World Bank. The IFC is also all set topick 5 per cent equity in the IFFCO’s US$325-million phosphoric acid plant proposed to be set upin Egypt. The IFC is also the financial adviser to theJV-Indo-Egyptian Fertilizer Company. The Egyptianventure with a proposed installed capacity of 4.50lakh tonnes of phosphoric acid annually is part ofIFFCO’s strategy to achieve backward and forwardlinkages in the fertilizer sector. The IFFCO will enterinto a 100 per cent buyback arrangement for theentire production from the newly formed company ona long-term basis.

Egypt’s strategic proximity to Europe, NorthAfrica and the oil-rich Gulf Cooperation Council

(GCC) comprising Saudi Arabia, Kuwait, Bahrain,Qatar, UAE, Oman and the Republic of Yemen isknown among investors throughout the world.

In merely two years, corporate FDI infusionsinto Egypt have nearly doubled from US$2 billion toUS$3.9 billion. It was expected that the FDI inflowsin Egypt might scale the US$5.2 billion mark in2005-06. The thrust has largely come from Indiaand China.

The Ministry of Petroleum and Natural Gas isplanning to offer packaged deals, especially for projectsin the under-developed regions in the Africansubcontinent. The package deals would include offersin oil refining, pipelines, power generation and railways.This is being considered because of stiff competitionfrom China. Mauritius is important from this point ofview because this country imports around 75 percent of its primary energy requirements such as oil,natural gas and coal from overseas. This island islocated off the south-east coast of Africa, rapidlydeveloped in the last three decades from an economybased on sugar to a greater degree of industrialisation,raising living standards for its people. The country’senergy requirements will grow by 5 per cent annuallyas a result of development in various sectors of theeconomy, particularly island transportation.

India and Mauritius have agreed to work togetherin exploring and developing petroleum reserves inthe vast territorial waters round the energy-dependentIndian Ocean Island. A memorandum of understandingwas signed between ONGC Videsh Ltd and theMauritius Oceanography Institute. The MauritiusGovernment is interested in promoting developmentand production activities of oil and gas in thecountry. It requires technical cooperation from ONGC.Mauritius will provide ONGC with all available informationon hydrocarbon exploration activities in its 1.9 millionsq km territorial waters. The ONGC Videsh Ltd willcarry out geo-physical and geological studies attarget areas within three years and will be exclusivelyauthorized to carry out petroleum operations in thosefields (The Financial Express, 2006).

Since the beginning of trade relations withSouth Africa in 1994, many Indian conglomerateshave set up ventures in this country from servicessector (IT and banking) to manufacturing (automotive,steel, pharmaceuticals). There are about 35 Indiancompanies presently operating in South Africa whichis the most prosperous economy in the African regionand offers a ready market.

Some of the major Indian companies that havealready invested in Africa are: the Tatas, UB, Ranbaxy,Dr. Reddy’s Laboratories, CIPLA, Cadilas, Elecon,Ashok Leyland, Eicher, Kirloskar Brothers, Mahindra& Mahindra, Sahara, etc. In the area of technologyand investment the number of Indian companiescoming to South Africa and the number of SouthAfrican companies that have gone into India is worthmentioning (The Hindu Business Line, 2006).

The Tatas have chosen to go with Africa in abig way. Their current business interest in Africa



14

covers a vast stretch of that continent from Senegalin the far West to Kenya in the East. Also it haschosen to enter with a number of businesses rangingfrom steel to horticulture and from automobiles totelecommunication. Tata Telecom is expected to investUS$200 million to start phone services in SouthAfrica. Tata Coffee will partner with Tata Africa anda financial institution for its coffee plant venture inUganda. The company is planning a 3600 tonnecoffee plant in Uganda. Also Tata Chemicals isexploring the possibility of setting up a soda ash unitnear Lake Natron, which lies on the border betweenTanzania and Kenya (Business Standard, 2006).

There are investment opportunities which canhelp Ghana to strengthen and diversify its industrialproduction base through Indian joint ventures in theareas of food processing; textiles and readymadegarments; timber and wood product; cement plant;exploitation of mineral reserves; and tourism.

Some of the areas, which are being opened forFDI include the services sector, such as telecommunication,transport, tourism, brewing, pharmaceuticals, cementmanufacturing, mining, etc. The Government of Ghanahas initiated the process to attract private investmentboth from the national and foreign investors.

Kenya has a liberalised foreign investmentprotection apart from other investment incentives. Theareas offering joint venture opportunities include drugsand pharmaceuticals, sugar, textiles, cement, chemicals,light engineering industry, food and agro-processing,tourism and tourism related industry.

Suashish Diamonds has received a licence fromthe Government of India to set up a diamondprocessing unit in Botswana. Botswana is the largestexporter of gemstones and diamonds in the world.The country is a major player in mining diamond,which accounts for half of its revenues (The FinancialExpress, 2006).

Indian and African public and private sectorcompanies are emerging with a view to facilitatingjoint ventures, technology transfer, supply of equipment,consultation and advisory services. Focus marketsand focus products schemes would help increasetrade prospects with most of African countries. Acountry like South Africa and products like diamonds,semi-precious stones, gold, silver, ores andconcentrates, cereals, sugar, and crude and petroleum-based products would be excluded (Ministry ofCommerce & Industry, 2005).

India may face competition from China. China’sgovernment will encourage companies to invest inAfrica to boost the supply of raw materials andencourage growth and development on the Africancontinent. China’s relations with Africa is a cornerstoneof China’s foreign policy. China’s trade with Africa isworth US$39.8 billion and imports worth US$21.1billion. Despite such challenges, India is set toextend the unilateral trade preferences scheme to allthe LDCs of Africa. This scheme is about unilateraloffer of tariff concessions and easing other restrictions

on trade to give market access to at least 34 LDCsof African continents (FICCI, 2005).

There is a commitment to effectively integratethe LDCs into the multilateral trading system, asreaffirmed at the sixth WTO Ministerial Conferenceheld in Hong Kong, December 2005. Building onthe commitment of the Doha Ministerial Declaration,the developed and developing countries agreed toimplement duty-free and quota-free market accessfor products originating from LDCs by 2008. Countriesalso agreed to take additional measures to provideeffective market access, both at the border andotherwise, including simplified and transparent rulesof origin, and to give priority to sectors and modesof supply of export interest to LDCs. These LDCswill be required to undertake commitments andconcessions only to the extent consistent with theirindividual development, financial and trade needsand their administrative and institutional capabilities.Private-sector development strategies would help inindustrial development of African countries that takethem to build up social and technological capabilities.It is crucial for the international community to helpthem meet their capacity-building needs includingthose related to trade.

References

China to boost Africa investment (2006, June 23). TheFinancial Express. p. 2.

Destination Africa: India’s Vision (2005, July). Federationof Indian Chambers of Commerce and Industry (FICCI),New Delhi.

Dutt, I.A. (2006, March 7). Tata Coffee to set up plant inUganda with Tata Africa. Business Standard.

Economic and Social Survey of Asia and the Pacific (2006):Energizing the Global Economy. UN ESCAP, New York.

Focus Africa: A programme for developing and enhancingIndia’s trade with Africa, 2004-05, Ministry of Commerceand Industry, New Delhi.

Focus Africa: A programme for enhancing trade with theSub-saharan region (2002, April 1), Ministry of Commerceand Industry, New Delhi.

Foreign Direct Investment (2005), UNCTAD, Geneva.

Goenka. R.A. (2005, September). Kenya International: TheGateway to East Africa. The Financial Express. pp. 1-4.

India-Africa Conclave (2005, December). Eximius: ExportAdvantage.

India to help Mauritius hunt oil & gas (2006, March 14).The Financial Express. p. 9.

Madan Lal


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Industrialisation, Environment and the MillenniumDevelopment Goals in sub-Saharan Africa -The new frontierin the fight against poverty (Industrial Development Report2004). (2004, June). UNIDO, Vienna, Austria.

Parbat, K. (2006, May 17). Indian investment on the rise inEgypt. The Economic Times.

Pathak. M. (2006, April 28). Tata Chemicals likely to set upSoda Ash Unit in Tanzania. Business Standard.

Patterns of Africa-Asia Trade and Investment: Potentialfor Ownership and Partnership (2004, October). WorldBank, Washington, USA. pp. 1-6.

Recent Economic Developments in West Africa: AnOverview (2006, March), Eximius: Export Advantage. p 3.


Sampathkumar, D. (2006, May 15). Out of Africa:penetrating overseas markets: A case study of the Tata’sForay into Africa. The Hindu Business Line, p. 13.

Sharma-S. N. (2006, April 27). Growing by leaps and bounds.The Economic Times (A Times Global Report), p. 1.

Study on promotion on India’s trade with sub-SaharanAfrican Countries (2001). Indian Institute of Foreign Trade(IIFT), New Delhi.

Suashish diamond received centre’s nod for African unit(2006, June 23). The Financial Express.


Abstract: Abstract: Abstract: Abstract: Abstract: Institutions of higher education, such as colleges anduniversities, are facing an increasing competition for students and financialresources that challenge their ability to survive into the twenty-first century. It ispredicted that quantitative measures, such as enrolment and developmentgrowth, will no longer be treated as indicators of institutional quality. Thequalitative dimensions related to the ability of institutions to adapt to thechanging economic, social and customer needs and expectations will be theindicators of their growth. Other parameters, such as a creative mix oftechnology, ease of access and new learning paradigms to satisfy needs of thenew clientele will also indicate their growth. Those institutions that succeed inthe twenty-first century will do so for a number of reasons, but one factor maybe their ability to plan and successfully execute marketing strategies and makerealistic adjustments in plans and programmes consistent with the institution’spurpose and mission. In this research paper I have tried to find out the variousfacts related to the growth, problems and prospects of strategic marketing insome institutions of higher education vis-à-vis the commitment level of topmanagement for the growth of the respective institutions.

P.Kameswara Rao*

*Dr. P. Kameswara Rao, Assistant Professor, VIT-Business School, VIT-University, Vellore-632014.

IntroductionIntroductionIntroductionIntroductionIntroductionHEHEHEHEHE traditional population of higher educationstudents is changing. Many institutions have,out of necessity, broken their historic paradigm

of focusing only on, on-campus students by usingalternative delivery methods and technology to makeeducation accessible to non-traditional market segments.The contemporary consumer mix more often includesfirst time students, continuing adult students, andadults with short-term goals to re-tool or repositiontheir skills to maintain their position in the workplace.There is a change in the interest of the students inthe available post-secondary options, such as institutionalsectors, fields of study and careers. This change itselfwill play an important role in institutional developmentand survival.

The administrators and the faculty of independentcolleges and universities can influence the adaptationof their institutions to the changing environment. Inthe future, while many of these institutions will extendtraditional approaches and policies in a new direction,others will seek means to enhance the adaptation oftheir institutions according to the changed scenario.

The changed scenario would require a shift ofvision, which encompasses coordinated systems thatare customer centred. Central to this vision is therole of institutional leadership, such as Chancellors/Vice Chancellors (Kotler, 1995). The more effectiveChancellors will most likely be those who proceedwith the difficult task of transforming the culture ofthe institution to be sensitive and responsive to thechanging needs of its internal and external stake-holders. Some Chancellors will employ marketingstrategies and programmes to meet articulatedinstitutional goals, such as growing enrolments andendowments, attracting higher quality students andimproving retention rates. Others would simply wantto maintain their existing size but focus on improvingthe quality of education. All will necessarily confrontthe need to share leadership and responsibility forchange with those closest to the customers, faculty,staff and current students. The realities are that allpolicies would be different as a consequence ofchange in the environment and the educationalmarketplace.

TTTTT



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Figure 1. The business strategy planning processFigure 1. The business strategy planning processFigure 1. The business strategy planning processFigure 1. The business strategy planning processFigure 1. The business strategy planning process

Purpose of marketing strategiesPurpose of marketing strategiesPurpose of marketing strategiesPurpose of marketing strategiesPurpose of marketing strategiesThe purpose of marketing strategies in higher

education is to provide a rational and plannedmethodology to recognise, anticipate and react to themarket changes. Marketing is the proactive managementof the relationship between the institution and itsvarious markets using the tools of marketing, i.e.,product, place, price and promotion. Marketing is nota panacea to be considered when enrolments are insteady decline and the continued viability of theinstitution is in question. The fundamental questionsfor every stakeholder involved in institutional planningis: ‘To what extent do we want to intervene andinfluence the destiny of our institution rather than bereactive to the environment?’ and ‘What marketingpractices and programmes are most effective?’

As shown in Figure 1, be it a business unit oran educational institution, the Vice-Chancellors musthave a mission followed by SWOT analysis. Thisanalysis would lead to the goal formation, strategyformulation, programme formulation, implementationand feedback and control.

Our research shows that the concept of marketingin colleges and universities remains an unclear productof a naive understanding of the real meaning ofmarketing. In fact, results indicate that after a fulldecade of discussions on the merits of strategicplanning and marketing in higher education, theactual behaviours still reflect a bias toward the promotionand sales activity at the expense of good marketresearch and product development.

Marketing for small colleges and universitieshas historically been interpreted as synonymous withthe admissions brochure. The management andoperational techniques in areas such as budgeting,information systems, personnel and finance have beenmodelled on the business world and refined, butmarketing has not been readily or uniformly accepted.In the college and university environment, marketinghas been viewed as selling and advertising, both ofwhich border on being unethical in the academicworld. Most college administrators believe that industrial-

type marketing cannot or should not be incorporatedinto educational management. They believe thatcolleges and universities should take a passive andnot active stance toward marketing.

Literature reviewLiterature reviewLiterature reviewLiterature reviewLiterature reviewAdams and Bumgardner (1998) had opined

that colleges and universities face an uncertain futureand many may be in danger of major restructuring ifnot extinction and the competitive intensity for studentsand financial resources will challenge the ability ofmany small colleges and universities to survive intothe twenty-first century. It was identified by Andrade(1998) that effective planning require wide stakeholderparticipation and dialogue and further opined thatthere is a large scope for institutionalised strategicplanning in the higher education institutions.

Strategic goal is a must for any institution withan inspirational agenda to empower the employeesin the institution (Austin, 2002). There is no singledistinction for strategic planning; however mostprocesses contain at least the common elements ofpredefined process; collaboration on process andoutcome implementation; and a system for evaluatingvision, mission, values and goals (Beckham, 2001).Beckham examined a healthcare board’s role increating a strategic plan. He described the role ofthe chair as leading the strategic committee while thechief executive officer should ensure the developmentof strategic direction, drive the implementation andparticipate in the committee meetings. He alsosuggested that the following mix of participants shouldcomprise the strategic planning committee: four non-physician trustees, three to four physicians who mayor may not be trustees, up to five members ofexecutive management including the chief executivewho serves as a voting member. He discussed whatshould take place inside and outside of the committee,emphasising the need for strategic planning to be agroup effort. He added that maintaining confidentialitywithin the boardroom is crucial.

The introduction to the strategic planning processfor boards, staff and chief executives is provided in


SWOT Analysis


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field of higher education (Topor, 1994). Also it isa must to have proper marketing strategies for theuniversities in the private sector with low endowment(Wallingford and Berger, 1993).

Study methodologyStudy methodologyStudy methodologyStudy methodologyStudy methodologyThe purpose of this study was to assess the

relationship of the Chancellor/Vice-Chancellor’s rolein shaping and implementing strategic marketing amongthe independent colleges in India. We wanted toevaluate how well the strategic marketing functionswere incorporated by the current leadership ofindependent colleges. We also wanted to see howthe role of the institution’s Chancellor/Vice-Chancellormight be related to the presence of strategic marketinginitiatives and programmes.

Data for the studyData for the studyData for the studyData for the studyData for the studyThe data for the study reported here were

collected from the following sources:

i .i .i .i .i . Standardised data sets/Questionnaires;i i .i i .i i .i i .i i . Survey of Chancellors/Vice-Chancellors/Chairmen/

Presidents of participating institutions;i i i .i i i .i i i .i i i .i i i . On-site interviews and observations at four case

study institutions;i v .i v .i v .i v .i v . Secondary sources like newspapers and the

Internet.

These primary and secondary sources ofinstitutional information provided the data used tostudy the relationship between marketing strategies,practices and initiatives with measures of institutionalperformance. Primary data were acquired from thepresidential survey instrument. The survey instrumentwas constructed to elicit the presidential perspectivesand to define the institutional performance measures.A total of 205 independent colleges and universitiesin India were selected for the study. The institutionstargeted by the study represented a segment of thehigher education institutions—private, independentcolleges and universities/deemed universities.

Sampling techniqueSampling techniqueSampling techniqueSampling techniqueSampling techniqueSimple random technique was used in the

existing list of colleges/universities across the country.The decision to survey the Chancellors/Vice-Chancellors was on the presumption that thedevelopment of a coordinated marketing strategydepends on a commitment from the central institutionaladministrative leadership and effective integration ofacademic and student service units. Chancellors/Vice-Chancellors of ninety-eight private, independentinstitutions have been selected for the study respondedto the survey.

Current research does not explain whether arelationship between the strategic marketing planningand the commitment levels of heads of institutionsexists for the consistent growth of these institutions.Opinions vary within the institutions on the need fora strategic marketing plan. As a result, the secondary

a 25-minute video where association management isexplained. The presentation covers the staff-drivenversus board-driven approaches to planning; thebenefits of planning; obstacles to the process andhow to overcome them; the need for board involvement;and steps in the process itself (Binder, 1999).

Brazziel (1990) had explained that the traditionalpopulation of higher education students is changing.According to Cerny, (1992) many institutions have,out of necessity, begun using alternative deliverymethods and technology to make education accessibleto non-traditional market segments. It is identifiedthat students and adults with short-term goals tendto re-tool or reposition skills to maintain their positionin the workplace.

Cope and Delaney opined that marketsegmentation is an important topic for higher educationresearchers and administrators and they explored therelative importance that the prospective students attachto various benefits offered by a medium-sized privateuniversity with moderately selective admissions criteria.

Universities have been forced to pay moreattention to the utilisation of marketing techniques intheir recruitment process due to the sharp decreasein the number of high school graduates (Crane andTurner, 1989). There is a need for strategic enrolmentmanagement and planning marketing higher education(Dolence et al., 1987). There is also a need fora diagnostic technique for formulating marketingstrategies in higher education based on relativecompetitive position (Dolinsky and Quazi, 1994).At the time of admissions itself proper care shouldbe taken by private educational institutions assesstheir recruitment effectiveness (Gans, 1993).

Maintaining the standards of admissions andthe use of key marketing techniques would be muchmore useful (Goldhegn, 1989). Weightage shouldbe given to the marketing aspect of enrolmentmanagement (Grove, 1992). Effective integration ofmarketing into college planning is necessary (Hattonand Sedgmore, 1992). There is a need for integratedmarketing communications for colleges, universitiesand schools (Johnson, 1989).

The institutions in the private sector should notneglect strategic marketing either in non-profitorganisations or in educational institutions. (Kotler,1995). Before going for strategic marketing there isa need for identifying the benefit segments amongprospective college students. Only then the institutionwould be in a good position to go ahead with itsstrategic marketing activities (Miller et al. 1990).

Marketing is no longer a bad word for theuniversities because in the present competitive worldthere is the need for marketing everywhere andeducational institutions are no exception (Strang,1986). In a recent article in The Hindu (2007) itwas stated that there is a need for 1500 universitiesin India by the year 2015. Therefore, there is aneed for organising for marketing, especially in the

P. Kameswara Rao


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analysis presented in this thesis attempts to answerthe following eight research questions (RQ):

RQ1:RQ1:RQ1:RQ1:RQ1: What is the level of commitment of the headsof the institutions on marketing of higher edu-cation?

RQ2:RQ2:RQ2:RQ2:RQ2: Is there a significant relationship betweencommitment of Vice-Chancellors in strategicmarketing planning and growth of the institution?

RQ3:RQ3:RQ3:RQ3:RQ3: Is there a significant relationship between com-mitment and the presence of a written mar-keting plan?

RQ4:RQ4:RQ4:RQ4:RQ4: Is there a significant relationship between growthof the institution and the presence of market-ing committee?

RQ5:RQ5:RQ5:RQ5:RQ5: Is there a significant relationship between retentionof enrolments and use of an outside marketingconsultant?

RQ6:RQ6:RQ6:RQ6:RQ6: Is there a significant relationship between thegrowth of the institution and the oversight ofinstitutional marketing plan by a board oftrustees/directors.

RQ7:RQ7:RQ7:RQ7:RQ7: Is there a significant relationship betweeninformation/counselling and increase inenrolments?

RQ8:RQ8:RQ8:RQ8:RQ8:What significant variable like course delivery,organisation and course development best predictsthe success of the institution?

HypothesesHypothesesHypothesesHypothesesHypothesesH1:H1:H1:H1:H1: There will be a moderate level of commitment of

the heads of the institutions on marketing ofhigher education.

H2:H2:H2:H2:H2: There will be a significant relationship betweencommitment of Vice-Chancellors in strategicmarketing planning and the growth of the institution.

H3:H3:H3:H3:H3: There will be a significant relationship betweencommitment and the presence of a written marketingplan.

H4:H4:H4:H4:H4: There will be a significant relationship betweenthe growth of the institution and the presence ofa marketing committee.

H5:H5:H5:H5:H5: There will be a significant relationship betweenretention of enrolments and use of an outsidemarketing consultant.

H6:H6:H6:H6:H6: There will be a significant relationship betweengrowth of the institution and the oversight ofinstitutional marketing plan by a board of trustees/directors.

H7:H7:H7:H7:H7: There will be a significant relationship betweeninformation/counselling and increase in enrolments.

H8:H8:H8:H8:H8: The success of institution depends on coursedelivery, organisation and course development?

Profiling a marketing-focused institutionProfiling a marketing-focused institutionProfiling a marketing-focused institutionProfiling a marketing-focused institutionProfiling a marketing-focused institutionThe concept of marketing explains that the key

to achieving institutional goals consists of determiningthe needs and wants of target markets and deliveringthe desired satisfactions more effectively and efficientlythan the competitors. Our presumption was that thePresident, as the driving force of institutional cultureand direction, is responsible for developing a marketing-oriented environment that is pervasive throughout theinstitution. A pervasive marketing climate also requiresa major cultural shift in the breadth of participation inplanning and communication than has been the casein many institutions. The following factors will providethe distinguishing profile of a market and customer-focused institution.

The President/Vice-Chancellor is expected tobe actively involved in providing institutional marketingleadership. The President must personally exemplifystrong commitment to a marketing culture. The Vice-Chancellors personally involve themselves in areasthey consider strategically or operationally importantto their institution. The Vice-Chancellors, in thisstudy, were asked to consider a list of nine selectedmarketing practices and identify those that got theirpersonal approval. The areas reserved for thePresident’s final approval were considered mostimportant. Chancellors personally ranked approvingthe plans of admissions and development the highest.

These practices likely ranked higher than othersbecause the Chancellors viewed the students tuitionand admission funds as vital in providing the revenuestream necessary to support the continuing operationsof the institution. When the Vice-Chancellors werepersonally involved in the areas of planning, strategydevelopment, initiating marketing research studies andapproving printed promotional materials, there wasevidence that the institutional performance improved.The mean values of the performance measure of theratio of student inquiry to student application werehigher for the Vice-Chancellors who reported providingfinal approval of printed materials. A significantrelationship was found between these two variables.The Vice-Chancellors who rated coordinating theirinstitution’s marketing strategy high in importancerealised measurable gains in conversion rates ofstudent inquiry to student application and consistentlyranked in the top quartile of this measure of institutionalperformance. By comparison, the Vice-Chancellorswho did not rate coordinating their institutions marketingstrategy high in importance ranked in the bottomquartile. The marketing process is integrated to reflect,recognise and involve all institutional stakeholders.

For higher education institutions to embraceand receive a full measure of value from embracinga marketing orientation they must understand thatmarketing is a culture, which must be pervasivethroughout the institution. This means having a clearappreciation for what marketing comprises and what



20

it can do for the institution. The institution-widemarketing orientation involves developing a marketingattitude, sharing of expertise, building commitmentand good communications in individuals.

All institutional stakeholders must understand,support and enable marketing strategies to ensure theintegration of operational responsibilities at every levelwithin the institution. Distribution of the marketingplan to the various stakeholders within the institutionis an effective method of communication and representsan excellent way to build commitment. Marketingplans in this study were well distributed among topinstitutional officers but less often to other institutionalstakeholders. Less than 30 per cent of the Vice-Chancellors reported distribution of marketing plans todeans, department heads, faculty, staff, alumni orstudent government officers. Participation in writingthe institution’s marketing plan brings shared expertise,commitment from participants and assists incommunicating the plan throughout the institution. Itwas clear from survey responses that institutionalplanning was top down in participation.

Top officers representing key administrative areaswere most likely to assist in development of marketingplans. Slightly more than 50 per cent of the respondingVice-Chancellors reported involving a facultyrepresentative and only 31 per cent reported involvingan academic dean in the planning process. Themean values of retention rates were both higher aswell as significant when academic deans participatedin writing marketing plans.

Marketing consultants from outside universitiesare used to build and enrich the institutional marketingculture. Consultants from outside can be used toanalyse local problems and assist in designing andorganising marketing strategies and programmes. Theycan provide new ideas for an institution to considerwhen developing marketing initiatives. They can providelegitimacy for changes an institution wishes to make.Over two-thirds of the responding Vice-Chancellorsreported using an outside consultant. Generally,Chancellors who reported using an outside consultantwere more likely to employ marketing strategies,programmes and initiatives. An outside marketingconsultant’s impact on institutional planning was mostevident in the areas of institutional planning. Chancellorswho reported using an outside consultant were morelikely to have a marketing committee and a marketingplan to provide marketing direction than those whoreported not using outside consultants.

Institutions conduct regular and structured marketingresearch studies of all important stakeholder areas.They must obtain information on stakeholder needsand gather marketing intelligence to help satisfy theseneeds efficiently. Every marketing decision poses uniqueneeds for information, and relevant marketing initiativescan be developed based on the information gatheredthrough marketing research. The presence of marketingresearch studies or programmes to monitor change inthe external environment is primary in the developmentof marketing strategies and programmes.

Marketing research was not well-developed inthe independent colleges and universities studied.The Vice-Chancellors reported they were most likelyto focus marketing research studies on current andprospective students and least likely to research ontheir own faculty and staff. Independent institutionswere dependent upon alumni and donors for endowmentand operating funds. The percentage of Vice-Chancellors reporting researching these two stakeholderareas was below 60 per cent. The percentage ofVice-Chancellors reporting conducting marketing researchstudies on parents (38 per cent) and high schoolcounsellors/principals (28 per cent) was also lowerthan expected. Clearly, the bias was on the prospectivestudents.

Although the mean institutional retention ratesfor the Vice-Chancellors who reported conductingmarketing research studies on current students werehigher than those reporting not conducting marketingresearch studies on current students, no significancewas found. While over 82 per cent of respondingVice-Chancellors reported conducting marketing researchstudies on prospective students, the mean values ofthe ratio of the students admitted to the studentsenrolled were not significantly related. Although themean value of the ratio of students admitted tostudents enrolled appeared higher for those Vice-Chancellors who reported conducting marketing researchstudies on high school counsellors, no significancewas found. Most Vice-Chancellors reported thatmarketing research studies on new students wasimportant, but Chancellors who forecast an increasein enrolment of above 15 per cent by the year 2007were more likely to conduct research on this importantmarket segment.

A marketing-oriented planning culture exists thatincludes participation from all stakeholder areas.Scanning an institution’s various environments fortrends is at the heart of planning. Making importantdecisions would be easier if Vice-Chancellors couldcorrectly anticipate the environment and its impact onstudent enrolment. Higher education Vice-Chancellorsoften make two types of errors. First, many Vice-Chancellors wait for events or trends to fully emergebefore incorporating them in their planning. Second,many Vice-Chancellors incorrectly assume that thepast correctly forecasts the future.

Marketing planning is a natural outgrowth ofhigher education’s concern for the allocation of limitedhuman and financial resources in cash-constrainedenvironments. Opportunities differ in the different marketsof an institution. A central concept of marketingplanning is that institutions be strategically defined totake maximum advantage of such opportunities andthat missions must be assigned consistent with thedifferences among them.

Marketing planningMarketing planningMarketing planningMarketing planningMarketing planningMarket planning describes the process of planning

that is built on sound assessments of market opportunityand institutional capability and involves the development

P. Kameswara Rao


21Strategic Marketing for Higher Education

of the institution’s total strategic approach to itsvarious markets.

In this research it was found that less than 20per cent of higher education institutions had writtenmarketing plans to provide overall marketing directionto the institution. Less than half of the Vice-Chancellorsin this study also reported no marketing plan. Thisstudy found that the presence of a written marketingplan was associated with an overall higher level ofinstitutional marketing. The Vice-Chancellors whoreported the presence of a marketing plan were alsolikely to have retention, recruitment, home visit andcampus visitation plans than were those who reportednot having a marketing plan. The Vice-Chancellorswho reported the presence of a marketing plan werealso more likely to conduct marketing research studies(these relationships were significantly related). Thissuggests that institutions are using the results ofmarketing research studies to assist in the planningeffort.

Higher levels of retention are evident wheninstitutions have a marketing committee. The meanvalues of retention rates were both higher as well assignificant for the Vice-Chancellors reporting thepresence of a marketing committee. Marketing evaluationsystems are in place to assure continuous monitoringand improvement of marketing programmes andstrategies. Marketing research studies and marketingplans focus on assessing institutional strengths andweaknesses against the backdrop of evolvingopportunities, and results in a determination of theinstitution’s ability to fill these opportunities, theirrelative attractiveness, and ways and means of takingadvantage of them.

Institutions typically implement more than onemarketing strategy. Different strategies target differentmarkets. These strategies embody ways in whichinstitutions take advantage of market opportunities,and are employed to meet institutional objectives.Improving student retention and recruiting new studentsare clearly top goals of every institutional President.Marketing strategies and programmes focus on theattainment of institutional objectives and periodicassessment provides validation of the success orfailure of marketing strategies. Over 81 per cent ofthe responding Vice-Chancellors reported the presenceof a written recruitment plan to attract potential students,but less than 60 per cent of Vice- Chancellorsreported the presence of a written retention plan asa strategy to improve student retention and graduationrates.

Two-thirds of the responding Vice-Chancellorsreported conducting marketing research studies ontheir current students. Because matriculated studentsrenew their enrolment decision every term and thecosts of attrition are substantial, the Presidentsconsidered retaining students nearly as important asattracting new students. Nearly 64 per cent of thePresidents who reported the presence of a marketingplan indicated that they also had a retention plan.The mean retention rate reported by the Vice-

Chancellors in this study was 59.33 per cent with astandard deviation of 15.46 and a range of 85. Thiswide variance suggests that either the Vice- Chancellorsdid not know the retention rate of the students orsome institutions were actually retaining only 15 percent of their students. The Vice-Chancellors whoreported retention rates in the top quartile were morelikely to employ important marketing practices. Theywere more likely to focus on planning and to conductmarketing research studies on various institutionalstakeholders. Once a student is admitted, the institutionmakes an effort to persuade the student to enrol.Therefore, the goal is to convert admitted students toenrolled students. The mean admission to enrolmentrate for institutions in this study was 50.78 per centwith a standard deviation of 18.57. Once again thiswide variance suggests that either the Vice-Chancellorsdid not know their admission to enrolment conversionrate or some institutions were actually converting only26 per cent of their students while others wereconverting 95 per cent. A relationship between theconversion rate of students admitted to students enrolledand various marketing initiatives was expected.

Twenty-two marketing practices, strategies andprogrammes from the survey were examined forsignificance. Only one practice was found and thatwas the admissions personnel who were trained inmarketing. The choice is at the heart of marketingand institutions must understand the process consumersuse to decide what and when to buy their education.Before the students submit an application to aninstitution they must have some level of awareness ofthe institution. The goal of admissions is to convertthese initial inquiries into completed applications. TheVice-Chancellors did not know their inquiry to applicationconversion rate or some institutions are actuallyconverting only 4 per cent of their students whileothers are converting 84 per cent. Less than 15 percent of the responding Vice-Chancellors reportedconversion rates above 50 per cent. A significantrelationship between the conversion rate of studentinquiry to student application and various marketinginitiatives was expected.

There are 16 variables studied under the fourheads:

i .i .i .i .i . Information and counselling;i i .i i .i i .i i .i i . Course development;i i i .i i i .i i i .i i i .i i i . Course delivery;i v .i v .i v .i v .i v . Organisation.

As per Figure 2, four significant factors werefound from various marketing practices, strategiesand programmes examined:

1 .1 .1 .1 .1 . Presence of a written marketing plan;

2 .2 .2 .2 .2 .Presence of a marketing committee;

3 .3 .3 .3 .3 .Use of an outside marketing consultant;

4 .4 .4 .4 .4 .Board of trustees/directors have oversight ofinstitutional marketing direction.


22

The Vice-Chancellors who reported conversionrates below 15 per cent were more likely to focus onvarious planning strategies to aid in improving thisimportant measure of institutional performance. Individualsin key institutional areas are formally marketing trained.Individuals academically or experientially trained inmarketing are more likely to understand and successfullyimplement marketing strategies. Forty-eighjt per centof the responding Chancellors reported their admissionspersonnel were marketing trained and 34 per centreported their development personnel were marketingtrained. Marketing training of the admissions staffmakes a difference in recruiting prospective students.The mean values for the ratio of students admitted tostudents enrolled, and the ratio of student inquiryand student application was both higher and statisticallysignificant when admissions personal were marketingtrained.

RecommendationsRecommendationsRecommendationsRecommendationsRecommendationsBroad stakeholder participation in planning brings

shared expertise, commitment from participants andassists in communicating the plan throughout theinstitution. The results from our presidential surveyand the case studies indicated that institutional planningwas top down in participation and results were poorlycommunicated to stakeholders. The Vice-Chancellorsshould consider broadening the involvement ofstakeholders in institutional planning. Marketing decision-making at independent colleges and universities shouldbe information driven. The results from our surveyand the case studies indicated that marketing researchwas not well developed. Marketing research shouldbecome a structured and routine activity at independentinstitutions.

This study examined marketing strategies andinitiatives at independent institutions in India. Theresults of the research indicated a significant relationshipbetween measures of institutional performance andadmissions personnel who were trained in marketing.

Considering this finding an institution’s key decision-makers (administration, faculty and staff) should betrained in marketing. They have widely varyingbackgrounds and are often physically andorganisationally remote from one another. Thedistribution of the institution’s planning efforts needsto be expanded.

As they implement their strategy, institutionsneed to track the results and monitor new developmentsin the internal and external environments. One thingthat higher education institutions can count on thattheir environments will eventually change. And whenthey do, institutions will need to review and revisetheir implementation, programmes, strategies, or evenobjectives. Institutions should develop a system toevaluate and provide feedback of the effectiveness ofthe institution’s planning system.

Our research found that strategic planning andmarketing among and within independent collegeswas no more disciplined or sophisticated than thatfound among various state universities in the year2006. The opportunity for improving the directionand efficacy of many institutions of higher educationstill remains for those who would implement a trulyintegrated strategic marketing initiative.

The Vice-Chancellors need to understand the10 commandments in strategic planning of highereducation are described below:

1 .1 .1 .1 .1 . Who are your customers (and who are not). Besure to identify ‘customers’ in broad ways; currentstudents, potential students, students you havelost (to attrition), faculty, administrators, staff,alumni, firms in the area and employers elsewherewho often take your students, and all the peoplewho relate to your academy.

2 .2 .2 .2 .2 .Why did the students select you and why havethey stayed with you. Your current ‘customers’

P. Kameswara Rao

AreasAreasAreasAreasAreas Conditions and Conditions and Conditions and Conditions and Conditions and ImplementationImplementationImplementationImplementationImplementation ResultsResultsResultsResultsResults Follow upFollow upFollow upFollow upFollow up

Information andInformation andInformation andInformation andInformation and 11111 External constraints 22222 Channels 33333 Student body 44444 EvaluationOrganisation Content Other results Customer reactionsPartners

CourseCourseCourseCourseCourse 55555 External constraints 6 6 6 6 6 Supervision, co-operation 77777 Course description 88888 Evaluationdevelopmentdevelopmentdevelopmentdevelopmentdevelopment Organisation Follow up and guidance Material meeting Customer reactions

of authors requirementsTarget group Choice of media Teaching aids Updating and/or revisionStaff Formative evaluation Customer reactionsPartners

CourseCourseCourseCourseCourse 99999 External constraints 1010101010 Two-way contact 1111111111 Students’ 1212121212 Evaluationdeliverydeliverydeliverydeliverydelivery achievement of goal

Organisation Teaching and guidance Course completion Customer reactionsStudents Materials Exams and tests Learning results

Teachers PartnersOrganisationOrganisationOrganisationOrganisationOrganisation 1313131313 External constraints 1414141414 Management 1515151515 Achievement of goals 1616161616 Evaluation

Organisation Communication Financial results ReportingPartners Future orientation Repute

counsel l ingcounsel l ingcounsel l ingcounsel l ingcounsel l ing

constraints constraints constraints constraints constraints

Figure 2. Overview of quality areas in the strategic marketing planning and quality factorsFigure 2. Overview of quality areas in the strategic marketing planning and quality factorsFigure 2. Overview of quality areas in the strategic marketing planning and quality factorsFigure 2. Overview of quality areas in the strategic marketing planning and quality factorsFigure 2. Overview of quality areas in the strategic marketing planning and quality factors


23

are the best indicators of your successes (andfailures). What attracted them to your institution tobegin with? Despite the weaknesses you havealready identified why do they still stay with you?What advantages did they find to offset thedisadvantages every school has?

3 .3 .3 .3 .3 .Why did your former applicants select and thenreject your academy? Which weaknesses did theyfind repelling and were discouraged from continuingat your institution?

4 .4 .4 .4 .4 .Who are the admission prospects that left andwhy did they select another school? The bestway to understand your school is to talk to thosewho rejected your offers. What were they lookingfor that your institution did not provide? What didthe other school have that attracted them to itinstead?

5 .5 .5 .5 .5 .Identify the ‘kinds’ of applicants you will want topursue over the next 12-18 months; and alongwith that, identify what those applicants will belooking for in educational opportunities. What isthe demographic, intellectual, and aspirational profileof your ‘ideal student?’

6 .6 .6 .6 .6 .Identify specific prospect-targets (hot, warm, cool)you would want to pursue in the near future.These targets should cover the breadth of yourinstitution: admissions, fund raising, alumni, internal(faculty, students, parents, friends), and external.Determine how they fit into your institution’s missionand goals. Is it possible that you have beenreaching for the wrong targets?

7 .7 .7 .7 .7 .Identify the prospecting and courting techniquesyou will use, as well as promotional materials youwill need (from power point demonstrations on alaptop to collateral brochures, high school visits,participation, etc.). How will you highlight thosestrengths you identified?

8 .8 .8 .8 .8 .Are there other strengths you have been ignoring?How can you add those to your repertoire ofrecruiting methods?

9 .9 .9 .9 .9 .Pay close attention to technology and implicationsfor distance education, website development andmaintenance and communications within and outsidethe institution. The key to the future is technological.Be sure you not only have the equipment,knowledge, and resources to take advantage of it,but know how you plan to emphasise these inyour recruitment strategy?

10.10.10.10.10.Which team of faculty members is playing collegepolitics? How do such politics hamper the growthof genuine faculty and students?

ConclusionConclusionConclusionConclusionConclusionIn our view there is no comprehensive survey

data available on ‘Understanding of Private HigherEducation in India’ from the stakeholders perspective

as well as the heads of various institutions chosenby us. The satisfaction levels of the students andparents who access educational services from varioustypes of higher education institutions has not beenmeasured so far. Similarly, the corporate sector’svoice, which recruits graduates from various institutions,also needs to be heard to analyse the implications ofprivatisation. This survey, while benefiting from someof the secondary literature on the subject, does notdraw any inference thereon. The review of thesecondary literature helped in framing hypotheses ashighlighted in the study. The viewpoints of variousheads of the institutions, such as the Vice-Chancellors/Registrars, etc., have been taken into consideration.A point to be noted here is that private sector higherinstitutes in the study refers to self-financing colleges,private universities and deemed universities. Finally,it is felt that there is a need for continuous researchin this area.

References Adams, M. F., & Bumgardner, L. G. (1998). The role of

public relations in a successful fund-raising campaign.Journal of Marketing for Higher Education, 3(2), 169-75.

Andrade, Sally J. How to institutionalise strategic planning:Effective planning requires wide stakeholder participationand dialogue. Planning for Higher Education Vol. 27, no. 2(Winter 1998-1999): 40-54. (See http://www.scup.org/pv27n2.htm)http://ispt.sdccd.edu/millennium_andrade.html

Austin, William J. (2002) Strategic planning for smartleadership: Rethinking your organisation’s collective futurethough a work-book based, three-level model Stillwater, OK:New Forums Press, Inc. pp. 9-10. (http://www.wfs.org/futuringbib.htm)(http://www.wfs.org/revaustin.htm)

Beckham, Dan. (September 2001). Strategic planning andthe board: The responsibility to plan the future. TrusteeVol. 54, no. 8: (http://www.agb.org/wmspage.cfm?parm1=101)

Binder, Elaine Kotell. (January 1999). Being strategic: Whatit takes for a board to plan and make decision-strategically.Association Management Vol. 51, no. 1: 63-65.

Brazziel, W. F. (1990). Marketing small-college continuingeducation. Journal of Marketing for Higher Education, 3(1),141-49.

Cerny, E. (1992). Marketing techniques employed by privateliberal arts colleges. College and University, 67(3), 215-221.

Cope, R. & Delaney, G. (1991). Academic program review:A market strategy perspective. Journal of Marketing for HigherEducation, 3(2), 63-86.

Crane, P., & Turner, L. (1989). Searching for soulmates.Currents, 15(2), 42-48.

Dolence, M. G., Miyahara, D. H., Grajeda, J., & Rapp, C.(1987-1988). Strategic enrolment management andplanning marketing higher education: Using a situation


24 P. Kameswara Rao

analysis to identify prospective student needs in today’scompetitive environment. Planning for Higher Education,16(3), 55-74.

Dolinsky, A. L., & Quazi, H. A. (1994). A diagnostictechnique for formulating marketing strategies in highereducation based on relative competitive position. Journalof Marketing for Higher Education, 5(2), 89-101.

Gans, W. (1993). Admissions recruitment effectiveness in privatefour- year colleges and universities private higher education.(unpublished doctoral dissertation), The University ofMichigan.

Goldhegn, L. A. (1989). Admissions standards and theuse of key marketing techniques by United States’ collegesand universities. College and University: The Journal of theAmerican Association of Collegiate Registrars, 65(1), 44-55.

Grove, J. (1992). The marketing aspect of enrolmentmanagement: Evaluating the impact on recruitment andretention in institutions of higher education. Journal ofMarketing for Higher Education.

Hatton, A. & Sedgmore, L. (1992). Marketing for collegemanagers: A workbook for the effective integration of marketinginto college planning. 142.

Johnson, B. (1989). Student recruitment: Have we gonetoo far? The Journal of College Admissions, 25-28.

Kotler, P. (1995). Strategic Marketing for EducationalInstitutions. New Jersey: Prentice-Hall, Inc.

Miller, P., Lamb, Jr. C. W., Hoverstad, R., & Boehm, E. G.(1990). An approach for identifying benefit segmentsamong prospective college students. Journal of Marketingfor Higher Education, 3(1), 49-64.

Strang, C. (1986). Marketing no longer dirty word touniversities. Marketing News, 20, 23.

The Hindu (2007, Jan. 2).

Topor, B. (1994). Organizing for marketing. MarketingHigher Education, VII (7), 1-8.

Wallingford, H. P., & Karen Berger. (1993). Marketingstrategies for a low endowment private university in the1990’s. Journal of Marketing for Higher Education, 4(1/2),325-338.


Understanding the Agreement on Agriculture underWorld Trade Organisation

Abstract:Abstract:Abstract:Abstract:Abstract: Trade distortions are present in the international market dueto the subsidies being provided to the farmers in the developed countries.These subsidies mean that the industrial countries are dumping food exportsinto developing countries at alarming rates. The developing countries cannotafford to pay direct subsidies to their farmers and, consequently, they are at atremendous disadvantage in the open market. The aim of the Agreement onAgriculture (AoA) under World Trade Organisation (WTO) was to encourage fairtrade in agriculture by removing trade distortions and eliminate all restrictions onthe free trade of agriculture products in the international market. It envisaged aphased reduction in various kinds of support being given to agriculture by themember countries. However, it has been unsuccessful in achieving its goals tilldate. Several factors, such as, domestic support, export dumping and marketaccess are important in ensuring the success of the Agreement on Agriculture.This study explores the reasons for its ineffectiveness and suggests measuresto successfully implement it with effective results.

Anil P. Dongre*

IntroductionIntroductionIntroductionIntroductionIntroductionHE HE HE HE HE World Trade Organisation (WTO) is thelegal and institutional foundation of multi-lateral trading system. It is a platform on

which trade relations among countries evolve throughdebate, negotiation and adjudication. It was proposedto set up the International Trade Organisation (ITO)along with the World Bank and International MonitoryFund (IMF) on the recommendation of the BrettonWoods conference in 1944. The ITO was not setup but in its place the General Agreement on Tariffand Trade (GATT) was established by the US,UK and some other nations in 1947 and it wasthought that GATT would facilitate the negotiationsfor the ITO.

The WTO is based in Geneva, Switzerland.The WTO agreement contains some 29 individualtexts covering everything from agriculture to textile.Given the provisional nature and limited field ofaction, the success of the GATT in promoting andsecuring the liberalisation of world trade over 47years was phenomenal. Continued reduction of tariffwas significant, but the glory was not for long. Afterthe limited achievement of the Tokyo round, thehigh rates of unemployment and constant factoryclosure led governments in Europe and America toseek bilateral market sharing arrangements (Paul,2005).

*Prof. Anil P. Dongre, Faculty, Department of Management Studies, North Maharashtra University, Jalgaon 425001.

TTTTT Structure of the WTOStructure of the WTOStructure of the WTOStructure of the WTOStructure of the WTO The WTO was established with the same

objectives that were behind the proposal for settingup the ITO in 1945. The WTO was established inJanuary 1995 to bring all international trade under asingle regulation and safeguarding of the internationalagreement on trade and service and intellectualproperty rights (IPR). The old GATT system wasallowed to continue under what was known as the‘Grandfather Clause’.

Its highest authority - the Ministerial Conference -dominates the structure of the WTO. This body iscomposed of the representatives of all WTO membernations. It meets every two years and is empoweredto make decisions on all matters under any of themultilateral trade agreements (Ashwathappa, 2006).

The day-to-day work of the WTO is entrustedto a number of subsidiary bodies, principally theGeneral Council. It operates through the DisputeSettlement Body (DSB) and Trade Policy ReviewBody (TPRB). The Director General is the ChiefExecutive Officer and he is assisted by a secretariatand his tenure is for four years. Four DeputyDirectors from different member nations also assists



26 Anil P. Dongre

him. Further, he has three councils to advise on:(i) Trade in goods, (ii) Trade in services and(iii) Trade related aspects of intellectual propertyrights. The trade review body has three committeesto assist it, namely, the Committee on Trade andDevelopment (CTD), the Committee on Balance ofPayment Restriction (CBOPR) and the Committeeon Budget, Finance and Administration (CBFA),which specialise in policy related to subjects allottedto them and advise the Trade Review Board(Avadhani, 2004).

The Uruguay round – A new changeThe Uruguay round – A new changeThe Uruguay round – A new changeThe Uruguay round – A new changeThe Uruguay round – A new changeThe Uruguay round started in November 1982

in Geneva. It was the biggest negotiation mandateon trade ever agreed. In 1988, the round of talksin Montreal, Canada led to the elaboration of themandate and a second round of negotiations. It tookuntil December 1993 for every issue to be resolved.On April 1994, the ministers of 125 participatingcountries, including India, signed the deal. TheGATT of 1947 continued to exist until the end of1995, allowing time for all GATT member countriesto accede to WTO and permitting an overlap ofactivity in areas like dispute settlement. As of today,147 governments hold the WTO membership; Indiasigned it on January 1, 1995.

The Agreement on AgricultureThe Agreement on AgricultureThe Agreement on AgricultureThe Agreement on AgricultureThe Agreement on AgricultureThe main aim of the WTO Agreement on

Agriculture (AoA) was to encourage fair trade inagriculture by removing trade distortions resultingfrom differential levels of input subsidies, price andmarket support, export subsidy and other kinds oftrade distorting support. The agreement envisaged aphased reduction in various kinds of support beinggiven to agriculture by the member countries.

The WTO negotiators on AoA often refer to thethree trade pillars within the AoA. It is on thesethree pillars that the majority of AoA negotiations arefocused. The AoA is a part of the GATT andcontains altogether 20 articles. The AoA was designedto eliminate all restrictions on the free trade ofagriculture products in the international market. Itgives directions on three aspects relating to freetrade: (i) domestic support, (ii) export subsidyand (iii) market access (Barker, 2007) andWorld Society for Protection of Animal (WSPA).

Domestic supportDomestic supportDomestic supportDomestic supportDomestic supportThe first trade pillar of the WTO AoA is

domestic support, which means providing subsidiesto a country’s own farmers. The domestic support isfurther classified into five categories: (i) AggregateMeasure of Support (AMS), which includes productspecific and non-product specific support (Amberbox), (ii) Green box support, (iii) Blue boxsupport, (iv) De minimus support and (v) Specialand Differential (S&D) treatment box. Out of these,the WTO agreement requires reduction only in AMSand export subsidies, whereas, support under allother heads is exempted. The Doha MinisterialDeclaration calls for ‘substantial reductions in trade-

distorting domestic support’ (Chand and Philip, 2001).

(i) Amber box(i) Amber box(i) Amber box(i) Amber box(i) Amber box

Amber box includes two types of aids: (i)aids given to agriculture inputs and (ii) aids givento agriculture products. These two categories togetherform the AMS. The AMS includes the sum total ofsubsidies on inputs, such as seeds, fertiliser, water,credit, power, market price support, etc., measuredby calculating the difference between domesticadministered market price and external referenceprice (world price) multiplied by the quantity ofproduction eligible to get applied administered price.

Items that fall into this box are the subsidiesthat are regarded as trade distorting, such as pricesupport for producers. The WTO members arecommitted under the AoA to making substantialreductions to their Amber box subsidies. The developednations are required to bring down their AMS by 20per cent and developing nations by 13 per cent.The developed nations can give up to 5 per cent oftheir agriculture gross domestic product (GDP) asdomestic support (de minimus) and developingnations up to 10 per cent. The above reduction isto be made only if it is above the limit based onagricultural GDP (Department of Agriculture andCooperation, Ministry of Agriculture, Government ofIndia, 2006).

(ii)Green box(ii)Green box(ii)Green box(ii)Green box(ii)Green box

Items that fall under this box have minimaltrade-distorting effects. The Green box subsidies arenot subject to the usual AoA rules requiring subsidiesto be reduced. The list of measures of the Greenbox includes general services, including research;pest and disease control; training, extension, inspection,marketing and promotion services; infrastructuralservices; food security stocks; domestic food aid;and direct payments to producers, including decoupledincome support, income insurance and safety-netprogrammes; disaster relief, producer or resourceretirement schemes; investment aids; environmentalprogrammes; and regional assistance programmes.This enables countries to help their farmers to copewith future contingencies and probably to reduce theextra cost of production and serve the social welfarethose subsidies being subject to reduction commitmentsunder the AoA (Hag Elamin).

The highest Green box support to agriculture isprovided by the USA, which spends more than one-third of its agricultural GDP on this support. Japanuses one-fourth of its agricultural GDP towards theGreen box provisions. The Green box support inCanada and European countries is around 13 percent of GDP. Among the developing countries, Brazilprovides about 3 per cent of GDP for Green boxsubsidy while in Thailand this support is around 7per cent. An estimate of the Green box expenditurefor India is available only for the year 1995. In thisyear, the country used 2.34 per cent ofagricultural GDP for Green box subsidy, most ofwhich was on public stock (foodgrain) holdings(Jales, 2006).


27 Understanding the Agreement on Agriculture under World Trade Organisation

(iii) Blue box(iii) Blue box(iii) Blue box(iii) Blue box(iii) Blue box

Items that fall into this box are direct paymentsmade under production-limiting programmes. It isapplicable only to the developed nations, which givesuch aids. These aids are viewed as less tradedistorting than Amber box subsidies.

(iv) De minimus support(iv) De minimus support(iv) De minimus support(iv) De minimus support(iv) De minimus support

De minimis support is the minimal level oftrade-distorting domestic support allowed by the WTOfor protecting the domestic product of importance.There is a general willingness to look at de minimuslevels for developing countries and possibly transitioneconomies (most of these countries are bound byde minimis levels rather than AMS reductioncommitments). Currently, developed countries areallowed a minimal amount of de minimis support;this is defined as 5 per cent of the value of totalagricultural production for specific commodity anddeveloping countries are allowed up to 10 per centof these.

(v) Special and Differential treatment(v) Special and Differential treatment(v) Special and Differential treatment(v) Special and Differential treatment(v) Special and Differential treatment

Because of the economic difficulties faced bydeveloping countries, they ought to be granted greaterflexibility than developed countries in implementingGATT disciplines. S&D treatment provides formalrecognition of the disadvantages developing countriesface in the world trading system. The provisionallows exports from developing countries to receivepreferential access to developed markets withouthaving to accord the same treatment in their domesticmarkets. The original purpose of S&D treatment wasto level the playing field and give developing countriesmore time to adapt to international competition.

Export subsidyExport subsidyExport subsidyExport subsidyExport subsidyThe second pillar of trade is export subsidy,

which refers to the money a country gives to itsproducers to encourage more export. Export subsidieslead to exports being at low prices, sometimes evenbelow the cost of production. The export subsidiesconstitute only a small portion of the total subsidysupport. The large share is accounted for by domesticsupport for the Organisation for Economic Cooperationand Development (OECD, about US $400 billion,of which nearly 75 per cent goes to the producers).The Doha ministerial declaration calls for reductionof all forms of export subsidies, with a view tophasing them out. Accordingly, the developed nationsmust reduce export subsidy by 36 per cent of thetotal value of export and by 21 per cent of the totalquantity of export. For developing nations the totalvalue of export is 25 per cent and 14 per cent,respectively.

At the Hong Kong ministerial conference, themodalities of the Doha declaration was acceptedand, accordingly, the developed countries have agreedto eliminate export subsidies by 2013. However, asubstantial portion of these will be withdrawn onlytowards the end of the transition (Odessey, 2005).

Though we expected to compete freely in theworld market, a number of complex regulations havebarred the products of the developing nations leadingto the collapse of the agriculture sector of thesenations. If this has to be improved we have to pressfor changing such regulations.

Market accessMarket accessMarket accessMarket accessMarket accessThe third trade pillar of the WTO is market

access, which refers to tariffs levied on the productto be imported. Under the AoA, the member countriesare required to make substantial reductions in tarifflevels. The general aim of the WTO is to reducetariff at substantial level and this received muchattention during the current negotiations, but there isan ongoing debate on how this should be accomplished.Two approaches have been suggested :

1 .1 .1 .1 .1 . Cut all tariffs to a harmonised level. This meansall tariffs on all products in a country are broughtto the same level.

2 .2 .2 .2 .2 .Cut on overall tariffs per country, but the countryshould have the flexibility to set different tarifflevels for different products.

Under these directions, the aim is to adopt acommon standard for tariffs and import duties,eliminating all existing regulations that are differentfor every nation. Non-tariff barriers are replaced bytariffs that provide substantially the same level ofprotection. The tariffs process, as well as othertariffs on agricultural products, are to be reduced byan average 36 per cent in the case of developedcountries and 24 per cent in the case of developingcountries, with minimum reductions for each tariffline. Reductions are to be undertaken over a periodof six years in the case of developed countries andover a period of ten years in the case of developingcountries. Accordingly, India made its 1428 tariff linefree for access in April 2005. The least developedcountries are not required to reduce their tariffs(Chand, 2002).

In the Doha and Hong Kong ministerialconferences it was resolved that the developingcountry members will have the flexibility to self-designate an appropriate number of tariff lines asspecial products that were guided by indicators basedon the criteria of food security, livelihood securityand rural development. It was agreed that thedeveloping country members will also have the rightto have recourse to a special safeguard mechanismbased on import quantity and price triggers, withprecise arrangements to be further defined. Thespecial products and the special safeguard mechanismshall be an integral part of the modalities. Thisoutcome of negotiations was a matter of great concernfrom the point of view of the developing nations.

Reforming global agricultural trade is widelyrecognised as an important step towards expandingeconomic development and is expected to lift millionsout of poverty. The World Bank estimates thatelimination of global trade barriers would enhance


28 Anil P. Dongre

global economic welfare by US$290 billion per yearby 2015. Thus, by formulating the best policyframework of market access that protects the farmersof the developing nations we can think of thebetterment of millions of people around the globe.

Issues arising out of domestic support,Issues arising out of domestic support,Issues arising out of domestic support,Issues arising out of domestic support,Issues arising out of domestic support,export subsidy and market accessexport subsidy and market accessexport subsidy and market accessexport subsidy and market accessexport subsidy and market access

The AoA calls for countries to significantlyreduce providing subsidies to its farm producers;however, many domestic support systems, such asdirect payments/subsidies to farmers, are still allowedunder the agreement. In fact, since the time theWTO was established, the developed nations haveincreased their farm subsidies by transforming theirAMS support to the Green box support (accordingto data from the Organization for Economic Cooperationand Development (OECD). These direct paymentsand subsidies in the developed nations mean thatthe industrial countries are dumping food exports intothe developing countries at alarming rates. Developingcountries cannot afford to pay direct subsidies totheir farmers and, therefore, argue that they are ata tremendous disadvantage in the open market dueto the export dumping of commodities from industrialnations. Thus, the permissible level of domesticsupport is essential for the developing nations becausetheir expenditure for AMS is very meagre as comparedto the developed nations. In the case of India, AMSis nil; it provides only Green box support and thatto only 2-3 per cent of total agricultural GDP.

Export dumping is the practice of selling productsat prices below the cost of production. The USA isone of the prime offenders in export dumping offood. The levels of dumping by the USA areapproximately 40 per cent for wheat, 25 to 30 percent for corn, and nearly 30 per cent for soyabeans.As a result, millions of farmers and families indeveloping countries are the losers as artificiallycheap food is coming from industrial countries. Thecycle is repeated in country after country; artificiallycheap food is dumped into a country putting domesticfarmers and farm communities out of business. Peopleare then forced to leave their land and migrate toalready overcrowded cities hoping to find a low-wage factory job; rural communities and cultures aredecimated; and massive hunger increases as peoplewho used to grow and consume local food mustnow have cash to pay for food from distant lands.

In case of market access, under the WTO, amember nation has to reduce or eliminate bordercontrol mechanisms on imports (in WTO terms –Elimination of Quantitative Restrictions and OtherNon-Tariff Barriers). The AoA requires that importcontrol mechanisms, such as quantitative restrictionsor quotas, must be eliminated. Historically, theserestrictions or quotas allowed a nation to control theamount of certain food commodities to be allowedacross its border. This was a way of ensuring thatthe domestic farmers were protected from imports offood already produced in the country, and ensuredthat the local food supply was maintained rather

than building a reliance on a cash-based foodsupply thousands of miles away.

The second issue relating market access is thesetting up of a minimum level for imports of agriculturalproducts by member countries as a share of domesticconsumption. Countries are required to maintain thecurrent levels (1986-88) of access for each individualproduct. Where the current level of import is negligible,the minimum access should not be less than 3 percent of the domestic consumption during the baseperiod and tariff quotas are to be established whenimports constitute less than 3 per cent of domesticconsumption. This minimum level was expected torise to 5 per cent by the year 2000 in the case ofdeveloped countries and by 2004 in the case ofdeveloping countries. However, special safeguardprovisions allow for the application of additionalduties when shipments are made at prices belowcertain reference levels or when there is a suddenimport surge (International Forum on Globalisation,2007).

ConclusionConclusionConclusionConclusionConclusionWe can minimise the adverse effect of the AoA

on a developing economy by reducing the quantitativerestrictions at substantial level and permitting theminimum access requirements through the propertariff rate quota for the developing nations, as resolvedin the Hong Kong ministerial conference. Further,there is a growing debate among the developingnations in the WTO about how to approach theissue of market access. All developing nations agreethat until the AoA rules seriously address and eliminateexport dumping, unlimited market access would providedeveloping nations little, if any, benefit and would infact further harm these countries. Therefore, there isa call for a moratorium on further market accessuntil the export dumping issue is realistically addressed.In the Hong Kong ministerial conference, somedeveloping countries, including India and Brazil,have requested the use of temporary safeguardmeasures, such as implementing quantitative restrictionswhen there are import surges or price drops thatcould devastate food supplies or domestic farmcommunities.

References Ashwathappa, K. (2006). International Business. pp. 477-482.

New Delhi: Tata McGraw- Hill.

Avadhani, V.A. (2004). Global Business. pp.107-108. NewDelhi: Himalaya Publication.

Barker, D. WTO Agreement on Agriculture: Threat to FoodSecurity and Sustainability, International Forum onGlobalisation. Retrieved April 13, 2006 from www.ifg.org

Chand, R. (25-29 November 2002). Market Access:Negotiating modalities and likely consequences for Asian Countries.Paper presented at Asia Regional Workshop on MultilateralTrade Negotiations on Agriculture, Organised by Food and


29 Understanding the Agreement on Agriculture under World Trade Organisation

Agriculture Organisation, Regional Office for Asia and thePacific, Bangkok, Thailand.

Chand, R. & Philip, M.L. (2001). Policy Brief 14, Subsidies& Support in World Agriculture: Is WTO providing levelplaying field, National Centre for Agricultural Economics &Policy Research, New Delhi. Retrieved April 12, 2006 fromhttp/wwww.ncap.res.in/upload_files/policy_brief

Department of Agriculture & Cooperation, Ministry ofAgriculture Government of India, Agreement onAgriculture, WTO framework agreement on Agriculture–framework for establishing modalities in agriculture.Retrieved April 12, 2006 from http://agricoop.nic.in/wtodac1.html

Hag N. E., A Resource Manual, Domestic Support Measures,Commodities and Trade Division, FAO CorporateDocument Repository, Multilateral Trade Negotiation onAgriculture. Retrieved from http://www.fao.org/docrep/003/x7353e/X7353e00.HTM.

International forum on globalisation, WTO Food andAgriculture rules: Briefing on critical issues. Retrieved April12, 2006 from www.centerforfoodsafety.org

Odessey, B. (2005, December). 2013 Deadline set foreliminating agricultural export subsidies. Washington filestaff writer, International information programme theUnited State Department of State. Retrieved April 12, 2006from www.usinfo.state.gov

Paul, J. (2005). International Business. pp.13-15. NewDelhi: Prentice Hall of India.

World Society for Animal Protection, Understanding theWTO: The three trade pillars of the WTO AoA and non-trade concern. Retrieved from www.wspa-international.orgpp. 2-5.

Credit Risk Management in Indian Banks:A Comparative Study

*Mr. Swaranjeet Arora, Faculty in Sanghvi Institute of Management, Behind IIM, Rao- Indore.

**Dr. Abhijeet Chatterjee, Reader and Head of Department, (Management), Shri Vaishnav Institute of Management,Sch. No. 71, Indore.

***Dr. Anukool M. Hyde, Reader and Head of Department, (Research), Shri Vaishnav Institute of Management, Sch.No. 71, Indore.

Abstract:Abstract:Abstract:Abstract:Abstract: Globalisation of the Indian economy has resulted in anincrease in the number, nature and dimensions of the risk factors. The riskfactors have increased not only because of fast development of newerproducts/ services and speed of their operations, but also due to their cross-border transactions, poor loan recovery and slow and expensive legalprocess. Credit risk, earlier present in the banking system, has alsoincreased four-fold and credit risk management has emerged as a bigchallenge for the Indian banking system. This study focuses on thecomparative evaluation of the quality of credit risk management systememployed by public and private sector banks. Further, to evaluate the creditrisk management systems of public and public sector banks, the Net NPAto Net Advances ratio (NNNAR), Gross NPA to Gross Advances ratio(GNGAR) and Credit Deposit ratio (CDR) have been analysed. This paperalso offers some meaningful suggestions to improve the credit risk managementsystem by banks. Swaranjeet Arora*

Abhijeet Chatterjee**Anukool M. Hyde***

IntroductionIntroductionIntroductionIntroductionIntroductionHE HE HE HE HE Banking industry is operating in a liberalisedand global environment, which is highlycompetitive and uncertain. Banks are offering

innovative products and initiating steps to computerisetheir offices to improve the speed of their operationsand provide prompt services to their customers whoare becoming highly demanding. The foreign exchangebusiness and cross-border activities are increasingat a fast pace. The above developments havecaused various types of banking risks, which can bebroadly related to market environment and theirbusiness control functions. These risks may includecredit risk, interest rate risk, liquidity risk, foreignexchange risk, group risk, technology risks, etc.

The Bank for International Settlements at Basel,Switzerland had issued draft guidelines on credit riskmanagement during 1999 and the Reserve Bank ofIndia (RBI) also came out with its first set ofguidelines on risk management during 1999. In

TTTTT these guidelines, it has been suggested that thebanks should put in place proper credit risk managementsystems. Some banks initiated the process of formulatingcredit risk policies in the year 2000 and haveimplemented these policies while few are still in theprocess of developing such policies. It has beenemphasised in credit risk management guidelinesthat while the credit risk strategy of a bank shouldgive recognition to the goals of credit quality, earningsand growth, it is also essential that the lender mustdetermine the acceptable risk/reward trade-off for itsactivities, factoring in the cost of capital.

The Bank for International Settlements, Basel,Switzerland says that ‘Granting credit involves acceptingrisk as well as producing profits’. The credit operationsin banks, by nature, involve an element of creditrisk. But if such risks are within predeterminedceilings, properly assessed and calculated ones, theloan loss to the bank can be restricted.



32

Sample:Sample:Sample:Sample:Sample: The technique employed is the simplerandom sampling. The respondents are from Indore(MP) and 35 respondents each from public sectorbanks and private sector banks have been chosen(N=35).

TTTTTools for analysis: Z-test, factor analysisools for analysis: Z-test, factor analysisools for analysis: Z-test, factor analysisools for analysis: Z-test, factor analysisools for analysis: Z-test, factor analysis

Hypothesis for Z-test:Hypothesis for Z-test:Hypothesis for Z-test:Hypothesis for Z-test:Hypothesis for Z-test:

H0=Private sector banks have similar credit riskmanagement system as in public sector banks.

H1= Private sector banks are better in terms of creditrisk management system as compared to publicsector banks.

Analysis of secondary data: Ratio analysis hasbeen carried out to evaluate the NPA managementof public sector and private sector banks.

Tools for analysis: T-test, RegressionTools for analysis: T-test, RegressionTools for analysis: T-test, RegressionTools for analysis: T-test, RegressionTools for analysis: T-test, Regressiontechniquetechniquetechniquetechniquetechnique

Hypotheses for T-test:Hypotheses for T-test:Hypotheses for T-test:Hypotheses for T-test:Hypotheses for T-test:

a .a .a .a .a . H0: The NNNAR of the public sector banks is

similar to the private sector banks.H1: The NNNAR of the public sector banks is

greater than the private sector banks.

b .b .b .b .b . H0: The GNGAR of the public sector banks is

similar to the private sector banks.H1: The GNGAR of the public sector banks is

greater than the private sector banks.

c .c .c .c .c . H0: The CDR of the public sector banks is

similar to the private sector banks.H1: The CDR of the private sector banks is

greater than the public sector banks.

ResultsResultsResultsResultsResults

Table 1. Value of Z-TestTable 1. Value of Z-TestTable 1. Value of Z-TestTable 1. Value of Z-TestTable 1. Value of Z-Test

S.No. S.No. S.No. S.No. S.No. Comparison ofComparison ofComparison ofComparison ofComparison of MeanMeanMeanMeanMean Standard- Z-calculated Standard- Z-calculated Standard- Z-calculated Standard- Z-calculated Standard- Z-calculatedBanking SectorBanking SectorBanking SectorBanking SectorBanking Sector deviation deviation deviation deviation deviation value value value value value

1 Public bank M1=48.20 7.43 4.55 2 Private bank M2=56.28

Since the Zcal = 4.55 which is more than theZtab(at 5 per cent level of significance) which impliesthat null hypothesis is rejected and alternative hypothesisis accepted. This means that the private sector bankhas a better credit risk management system thanpublic sector bank because private sector bankshave better loan disbursement policies and procedures,internal credit risk rating model for lending andpricing decisions, use of risk adjusted return oncapital (RAROC) concept, human assets and useof risk-based audit systems.

Factors of credit risk managementFactors of credit risk managementFactors of credit risk managementFactors of credit risk managementFactors of credit risk managementfor public sector banksfor public sector banksfor public sector banksfor public sector banksfor public sector banks1 .1 .1 .1 .1 . Credit risk monitoring:Credit risk monitoring:Credit risk monitoring:Credit risk monitoring:Credit risk monitoring: It is the promptidentification of the loan accounts, which havedeveloped some weaknesses in their functioningfor initiating timely corrective actions by items1,3,5,8,11 and 7. These variables in thequestionnaire are: ‘Does your bank have creditrisk management policies?’; ‘Does your bankhave separate credit risk management departmentthan the credit department while other banks donot have?’; ‘Does your bank have better internalcredit rating model than any other bank?’; ‘Doesyour bank use the credit rating model for lendingas well as pricing decisions while other banksuse this policy for only lending purpose?’; ‘Doesyour bank use RAROC credit adjusted return oncapital concept for pricing of loans while otherbanks do not use this concept?’, ‘Does yourbank have tailored credit rating models for differentkind of entities while other banks do not havethem?’. Variable 01 is the strongest and explains33.60 per cent variance and has a total factorload of 0.867.

2 .2 .2 .2 .2 .Credit appraisal:Credit appraisal:Credit appraisal:Credit appraisal:Credit appraisal: It is appraising a project inorder to improve a bank’s loan portfolio and ismeasured by items 12, 4 and 2. These variablesin the questionnaire are: ‘Does your bank havemore qualified/experienced finance as well asengineering employees than any other bank?’;‘Does your bank have better loan disbursementpolicies than any other bank?’; ‘Has your bankstarted using credit risk management policies beforeany other bank?’. Variable 12 is the strongestand explains 0.93 per cent variance and has atotal factor load of 0.872.

3 .3 .3 .3 .3 .Credit risk mitigation:Credit risk mitigation:Credit risk mitigation:Credit risk mitigation:Credit risk mitigation: It involves credit riskenvironment, formulation of the strategy to beadopted at pre-sanction stage, level of creditapproving authority, monitoring and reviewing therisk profile and dealing with problem credit andrisk pricing and is measured by items 6 and 9.These variables in the questionnaire are: ‘Canyour bank track the probabilities of default betterthan any other bank?’; ‘Does your bank incorporatecontingent liabilities in the risk management processwhile other banks do not incorporate?’. Variable6 is the strongest and explains 6.237 per centvariance and has a total factor load of 0.889.

4 .4 .4 .4 .4 .Credit review:Credit review:Credit review:Credit review:Credit review: This refers to verification inregard to continued viability of the borrower’sactivity and assessment regarding the need-basedcharacter of credit limits and it is measured byitem 10. This variable in the questionnaire is:‘Does your bank have a comparatively shorterloan account review cycle than any other bank?’.It explains 1.476 per cent variance and has totalfactor load of 0.682.

5 .5 .5 .5 .5 .Risk based audit system:Risk based audit system:Risk based audit system:Risk based audit system:Risk based audit system: It evaluates theadequacy and effectiveness of risk managementpolicies and procedures’ internal control system. It

Swaranjeet Arora, Abhijeet Chatterjee and Anukool M. Hyde


33

is measured by item 13. This variable in thequestionnaire is: ‘Does your bank use risk-basedaudit system while other banks do not use thissystem?’. Variable 13 explains 0.0805 per centvariance and has a total factor load of 0.857.

Factors of credit risk managementFactors of credit risk managementFactors of credit risk managementFactors of credit risk managementFactors of credit risk managementfor private sector banksfor private sector banksfor private sector banksfor private sector banksfor private sector banks1 .1 .1 .1 .1 . Credit rating models:Credit rating models:Credit rating models:Credit rating models:Credit rating models: It refers to models whichdefine, measure and evaluate various credit riskcategories of different types of borrowers and ismeasured by items 8,7,5,1,3 and 11. Thesevariables in the questionnaire are: ‘Does yourbank use a credit rating model for lending as wellas pricing decisions while other banks use thispolicy for only lending purpose?’; ‘Does yourbank have tailored credit rating model for differentkinds of entities while other banks do not have?’;‘Does your bank have better internal credit ratingmodel than any other bank?’; ‘Does your bankhave credit risk management policies?’; ‘Doesyour bank have a separate credit risk managementdepartment than the credit department while otherbanks do not have?’; ‘Does your bank useRAROC credit adjusted return on capital conceptfor pricing of loans while other banks do not usethis concept?’. Variable 8 is the strongest andexplains 3.124 per cent variance and has a totalfactor load of 0.832.

2 .2 .2 .2 .2 .Credit mitigation tools:Credit mitigation tools:Credit mitigation tools:Credit mitigation tools:Credit mitigation tools: It involves credit riskenvironment, formulation of the strategy to beadopted at pre-sanction stage, level of creditapproving authority, monitoring and reviewing therisk profile and dealing with problem credit andrisk pricing and is measured by items 6 and 9.These variables in the questionnaire are: ‘Canyour bank track the probabilities of default betterthan any other bank?’; ‘Does your bank incorporatecontingent liabilities in the risk management processwhile other banks do not incorporate?’. Variable6 is the strongest and explains 6.237 per centvariance and has a total factor load of 0.889.

3 .3 .3 .3 .3 .Credit risk assessment:Credit risk assessment:Credit risk assessment:Credit risk assessment:Credit risk assessment: It refers to quantifyingand measuring the degree of credit risk which aparticular transaction or an activity is exposed to.It is measured by items 4 and 12. These variablesin the questionnaire are: ‘Does your bank havebetter loan disbursement policies than any otherbank?’; ‘Does your bank have more qualified/experienced finance as well as engineeringemployees than any other bank?’. Variable 12 isthe strongest and explains 0.930 per cent varianceand has a total factor load of 0.672.

4 .4 .4 .4 .4 .Credit risk identification:Credit risk identification:Credit risk identification:Credit risk identification:Credit risk identification: It refers to theunderstanding of the nature of credit risks, thecircumstances which lead a situation to become acredit risk situation and causes due to whichcredit risk can arise. It is measured by item 2.This variable in the questionnaire is: ‘Has yourbank started using credit risk management policiesbefore any other bank?’. Variable 2 is the strongestand explains 15.56 per cent variance and has atotal factor load of 0.674.

5 .5 .5 .5 .5 .Risk-based audit system:Risk-based audit system:Risk-based audit system:Risk-based audit system:Risk-based audit system: It evaluates theadequacy and effectiveness of risk managementpolicies and procedures of the internal controlsystem. It is measured by item 13. This variablein the questionnaire is: ‘Does your bank userisk-based audit system while other banks do notuse this system?’. Variable 13 explains 0.0805per cent variance and has a total factor load of0.673.

Net NPA as percentage of Net AdvancesNet NPA as percentage of Net AdvancesNet NPA as percentage of Net AdvancesNet NPA as percentage of Net AdvancesNet NPA as percentage of Net Advances(NNNAR)(NNNAR)(NNNAR)(NNNAR)(NNNAR)

This ratio relates to NPA after profit provisioningto advances. It is an important parameter of examiningthe credit efficiency of a bank. It also indicates howgood banks are at provisioning practices. The Table2 shows the net NPA as a percentage of netadvances in public and private sector banks togetherwith some statistical measures. The projected NNNARfor the year 2010-11 is also calculated throughregression technique.

YearYearYearYearYear Public (%) Public (%) Public (%) Public (%) Public (%) Private(%)Private(%)Private(%)Private(%)Private(%)1999-00 7.42 5.412000-01 6.74 5.442001-02 5.82 5.732002-03 4.54 4.952003-04 3.00 2.842004-05 2.06 2.17MeanMeanMeanMeanMean 4.93 4.424Standard deviationStandard deviationStandard deviationStandard deviationStandard deviation 1.932 1.39Covariance (%)Covariance (%)Covariance (%)Covariance (%)Covariance (%) 39.19 31.422010-112010-112010-112010-112010-11 -3.35 -8.6

YearYearYearYearYear Public(%)Public(%)Public(%)Public(%)Public(%) Private(%) Private(%) Private(%) Private(%) Private(%)1999-00 13.98 8.172000-01 12.37 8.372001-02 11.09 9.642002-03 09.36 8.082003-04 07.80 5.842004-05 05.53 4.44MeanMeanMeanMeanMean 10.022 7.424Standard deviationStandard deviationStandard deviationStandard deviationStandard deviation 2.825 1.742Covariance (%)Covariance (%)Covariance (%)Covariance (%)Covariance (%) 28.19 23.472010-112010-112010-112010-112010-11 -2.36 1.46

Table 2. The net NPA to net advances ratioTable 2. The net NPA to net advances ratioTable 2. The net NPA to net advances ratioTable 2. The net NPA to net advances ratioTable 2. The net NPA to net advances ratio(NNNAR)(NNNAR)(NNNAR)(NNNAR)(NNNAR)

Gross NPA as percentages to GrossGross NPA as percentages to GrossGross NPA as percentages to GrossGross NPA as percentages to GrossGross NPA as percentages to GrossAdvances Ratio (GNGAR)Advances Ratio (GNGAR)Advances Ratio (GNGAR)Advances Ratio (GNGAR)Advances Ratio (GNGAR)

This ratio reflects NPA to advances beforeprofit provisioning. It measures the credit efficiencyof a bank before effecting profit provisions. It reflectshow good the banks’ credit policies are. Table 3shows the gross NPA as a percentage of grossadvances in public and private sector banks togetherwith some statistical measures. The projected GNGARfor the year 2010-11 is also calculated throughregression technique.

Table 3. The gross NPA to gross advances ratioTable 3. The gross NPA to gross advances ratioTable 3. The gross NPA to gross advances ratioTable 3. The gross NPA to gross advances ratioTable 3. The gross NPA to gross advances ratio(GNGAR)(GNGAR)(GNGAR)(GNGAR)(GNGAR)



34

Data analysis and interpretation for ‘T’ testData analysis and interpretation for ‘T’ testData analysis and interpretation for ‘T’ testData analysis and interpretation for ‘T’ testData analysis and interpretation for ‘T’ test

Table 5. ‘T’ test for comparison of public sectorTable 5. ‘T’ test for comparison of public sectorTable 5. ‘T’ test for comparison of public sectorTable 5. ‘T’ test for comparison of public sectorTable 5. ‘T’ test for comparison of public sectorand private sector banksand private sector banksand private sector banksand private sector banksand private sector banks

1 .1 .1 .1 .1 . Statistical analysis of NNNAR:Statistical analysis of NNNAR:Statistical analysis of NNNAR:Statistical analysis of NNNAR:Statistical analysis of NNNAR: It is evidentfrom Table 5 that NNNAR of public sector banksand private sector banks do not differ significantly,hence they are equally efficient in this respect.

2 .2 .2 .2 .2 .Statistical analysis of GNGAR:Statistical analysis of GNGAR:Statistical analysis of GNGAR:Statistical analysis of GNGAR:Statistical analysis of GNGAR: It is evidentfrom Table 5 that GNGAR of public sector banksdiffer significantly from private sector banks, hence

they are not equally efficient in this respect andalternative hypothesis holds good, i.e., publicsector banks have greater GNGAR as comparedto private sector banks.

3 .3 .3 .3 .3 .Statistical analysis of CDR:Statistical analysis of CDR:Statistical analysis of CDR:Statistical analysis of CDR:Statistical analysis of CDR: It is evident fromTable 5 that the CDR of public sector banksdiffer significantly from private sector banks, andalternative hypothesis stands true, i.e., privatesector banks have greater CDR as compared topublic sector banks.

Summary of findings and suggestionsSummary of findings and suggestionsSummary of findings and suggestionsSummary of findings and suggestionsSummary of findings and suggestions1 .1 .1 .1 .1 . Private sector banks are better in Terms of creditrisk management system because they have separatecredit risk management department, internal creditrisk rating model, effective surveillance of loandisbursement process, shorter loan account reviewcycle, efficient tracking of default accounts, use ofRAROC concept for pricing of loans, qualifiedand experience personnel and risk-based auditsystem.

2 .2 .2 .2 .2 .It has been observed from Table 2 that theNNNAR of public sector banks has declinedconstantly for the last six years while the NNNARof private sector banks showed an upward trendinitially but later on declined. Hence, it reflectsthat both the sectors should adopt such practicesin order to sustain the trend. The average NNNARof public sector bank is more than the privatesector banks, which reflects the better credit riskmanagement policies adopted by private sectorbanks.

3 .3 .3 .3 .3 .Table 3 shows that the GNGAR of public sectorbanks has shown a declining trend for the last sixyears while the GNGAR of private sector banksshowed an upward trend initially but later ondeclined. The average GNGAR of public sectorbank is more than the private sector banks,reflecting better credit risk management practicesadapted by the private sector banks.

4 .4 .4 .4 .4 .Table 4 shows that the CDR of public andprivate sector banks has shown an upward trend.The average CDR of public sector banks is less,reflecting an inefficient utilisation of funds generatedfrom deposits for the purpose of credit creation.

5 .5 .5 .5 .5 .An important and interesting fact has been observedin Table 5 that although there is a significantdifference between the means of gross NPA andCDR of the banks, there is no significant differencebetween the means of net NPAs because of highvolumes of advances and deposits and betterprofit proportioning in public sector banks.

6 .6 .6 .6 .6 .By 2010-2011, assuming all factors being constant,net NPA and gross NPA will reduce while CDRwill increase for both types of banks.

7 .7 .7 .7 .7 .CDR of private sector banks will be more thanthe public sector banks and hence, the grossNPA will also be more in private sector banks.

Particulars Particulars Particulars Particulars Particulars NNNARNNNARNNNARNNNARNNNAR GNGARGNGARGNGARGNGARGNGAR CDRCDRCDRCDRCDR H

0 (Null

Hypothesis) m

pub = m

pvt m

pub = m

pvt m

pub = m

pvt

H1(Alternative m

pub > m

pvt m

pub > m

pvt m

pub < m

pvt Hypothesis) Degrees of Freedom 10 10 10 (n

1+n

2-2)

Type of Test One tailed One tailed One tailed Calculated Value 0.53 1.92 2.82 of ‘T’ Critical Value of ‘T’ 1.81 1.81 1.81 Conclusion, H

0 is Accepted Rejected Rejected

Descriptive The mean The mean The meanNNNAR of publicsector banks andprivate sectorbanks is equal.

GNGAR of publicsector banks isg rea te r thanprivate sectorbanks.

CDR of privatesector banks isgreater than publicsector banks.

Conclusion

Table 4. Credit deposit ratio (CDR)Table 4. Credit deposit ratio (CDR)Table 4. Credit deposit ratio (CDR)Table 4. Credit deposit ratio (CDR)Table 4. Credit deposit ratio (CDR)

Swaranjeet Arora, Abhijeet Chatterjee and Anukool M. Hyde

Credit Deposit Ratio (CDR)Credit Deposit Ratio (CDR)Credit Deposit Ratio (CDR)Credit Deposit Ratio (CDR)Credit Deposit Ratio (CDR)

The CDR relates to total advances granted bya bank to its total deposits on any particular date.This ratio focuses on the credit creating ability of abank. Thus, it is an important parameter used toanalyse the credit efficiency of a bank. This ratioalso provides a strong basis for the efficient utilisationof deposits mobilised by a bank. A high creditdeposit ratio reflects efficient credit creating capabilities.

Table 4 shows the CDR in public sector andprivate sector banks together with some statisticalmeasures.The projected CDR for the year 2010-11is also calculated through regression technique.

YearYearYearYearYear Publ ic(%)Publ ic(%)Publ ic(%)Publ ic(%)Publ ic(%) Private(%)Private(%)Private(%)Private(%)Private(%)1999-00 47.756 49.0382000-01 48.285 49.8492001-02 49.567 69.6162002-03 50.820 67.0702003-04 51.488 63.5192004-05 56.960 70.288MeanMeanMeanMeanMean 50.813 61.564Standard deviationStandard deviationStandard deviationStandard deviationStandard deviation 3.043 8.844Covar iance(%)Covariance(%)Covariance(%)Covariance(%)Covariance(%) 5.99 14.372010-112010-112010-112010-112010-11 62.95 92.52


35

ConclusionConclusionConclusionConclusionConclusionThe paper presents both the qualitative and

quantitative aspects of credit risk management practicesadopted by private and public sector banks. Thefindings of the paper suggests that credit operationsin private sector banks are better as compared topublic sector banks because of efficient credit riskmanagement system adopted by them. It also reflectsthat in future, with the increase of credit depositratio in private sector banks, the NPA will increasein terms of value but will decline in terms ofpercentage to total CDR because of sound creditrisk management policies adopted by private sectorbanks.

References

Bardia, C.S. (2004). Credit efficiency in banks: A comparativestudy. The ICFAI Journal of Industrial Economics, I (3), 60-68.

Bidani, S.N, Mitra, P.K. & Kumar, P. (2004). Suggestions andrecommendations for effective credit risk management. (pp.169-170). Delhi: Taxmann Allied Services Pvt. Ltd.

CRISIL (2003). A roadmap for implementing an integratedrisk management system by Indian banks by March 2005-IBA Bulletin Special Issue, XXVI-No. 1, pp.37-55.

Linda, A. & Anthony, S. (2003). A survey of cyclical effectsin credit risk measurement models. Bank of InternationalSettlements, Monetary and Economic Department, WorkingPapers p. 126.

Lowe, P. (2002, September), Credit risk measurement andprocyclicality. Bank of International Settlements, Monetaryand Economic Department, Working Papers (No. 116).


Abstract: Abstract: Abstract: Abstract: Abstract: The Indian call centre industry is growing at a fast rate andhas the strong capability of generating jobs for millions of Indians. In thepresent call centres, specific efforts are undertaken to (i) ensure a healthymotivational climate through measures, such as grooming employees for skills,knowledge and attitude; enhancing work culture; offering attractive compensationpackages; and (ii) provide a conducive environment of optimum role efficacy.However, in spite of these measures, the rate of attrition is high and is on therise, which is detrimental to this job segment. Taking cognisance of this fact,this study has been undertaken to investigate the motivational climate and roleefficacy of an Indian call centre to identify the probable causes that lead toattrition in the call centres. On the basis of the findings of this study, certainhuman resource strategies/organisational development interventions have beenrecommended for implementation to enhance the motivational climate andreduce the current high rate of attrition in the Indian call centres.

A Study of the Motivational Climate and Role Efficacy inIndian Call Centres

Satish Seth*M.S. Turan**

*Prof. Satish Seth, Professor and Director, Jagannath Institute of Management Sciences, New Delhi.

**Dr. M.S. Turan, Director (Distance Education), Guru Jambheshwar University of Science and Technology, Hisar.

HE HE HE HE HE call centre industry with other informtiontechnology enabled services (ITES) wouldbe worth Rs. 81,000 crores with 20,00,000

job requirements by 2008. One of the main challengesbeing faced by the call centre industry is the highrate of attrition. The employee turnover rate isestimated to be as high as 25 per cent to 35 percent. Most of the research and training effortsundertaken to date in the industry have focused ongrooming employees for skills, knowledge and attitude;enhancement of the work culture and attractivecompensation packages. Although specific measuresin the above areas have helped to enhance themotivation level of employees and as a consequenceimproved their work performances, the problem ofhigh attrition still remains unresolved.

In any organisation the performance of peopleworking there basically depends on their own potentialeffectiveness, technical competence, managerial skillsand experience and the design of the roles theyperform. Hence, the most important variables at theorganisational level are the motivational climate ofthe organisation and the role-interaction patterns.The psychological distance between various rolesdetermine to a great extent how the roles interactand collaborate with each other. These influence


TTTTT and are in turn influenced by the organisationalclimate.

The present study involves the diagnosis of themotivational climate and role efficacy of an Indiancall centre, M/s Callcen, based in Gurgaon, Indiathrough questionnaires administered to a select sampleof employees. Based on the responses received, themotivational climate and role efficacy profiles weredrawn and analysed.

Motivational climateMotivational climateMotivational climateMotivational climateMotivational climateThe culture prevailing in an organisation tends

to encourage and promote certain types of behavioursmore than others. The patterns of behaviours of theemployees characterises the motivational climate ofthe organisation. The motivational climate may facilitateor inhibit employee development. The behaviourshown by people in an organisation or departmentin relation to various task dimensions indicates theexpression of certain motives. One conceptualframework of climate emphasises motivational linkages(Litwin and Stringer, 1968). The framework outlinesthe motives on which the climate is measured, i.e.,achievement, power, extension, affiliation, dependencyand control.



37

Likert (1967) proposed six dimensions oforganisational climate, i.e., leadership, motivation,communication, decision, goals and control. Litwinand Stringer (1968) proposed certain dimensionsof organisational climate, i.e., conformity, responsibilitystandards, rewards, organisational clarity, warmthand support and leadership.

Based on a review of past studies and discussionswith managers, the following processes were suggestedwhich characterise the motivational climate of theorganisation. They are: orientation, interpersonalrelationships, supervision, problem management,management of mistakes, conflict management,communication, decision-making, trust, managementof awards, risk-taking and innovation and change(Pareek 1997). He concluded that the organisationalclimate is characterised by the combination of dominantand secondary motives.

Some of the climate profiles based on motivesoutlined in the framework of Litwin and Stringer(1968) are explained below:

a)a)a)a)a)An ‘achievement-dominant’ climate indicates thatthe concern for work excellence and competitionwith other companies prevails in the organisation.Excellence is rewarded, information is availablefor those who need it for deliberations and decision-making, people who achieve targets are trusted,people prefer to solve problems by themselvesand learn from experience, take moderate risksand are concerned about achieving tasks.

b)b)b)b)b)An ‘extension-dominant’ climate indicates thatthere is high concern in the organisation todevelop people and groups to work for the largergood, and people are treated as human beingswith a genuine concern for their welfare ratherthan being treated as roles. In such a place,people help each other, supervisors help theirsubordinates to grow and develop, and peopleare encouraged to handle problems and resolveconflicts supportively.

c)c)c)c)c)An ‘affiliation-dominant’ climate is characterisedby people striving for friendly, warm and affectionaterelationships. In such places, tasks andmethods of achieving the tasks are based onrelationships, people have a high concern forsocial relationships and like being good and closeto each other.

d)d)d)d)d)A ‘dependency-dominant’ climate indicates thatin such an organisation people do not do thingson their own but look for orders or suggestionsfrom their superiors and refer matters to themrather than attempt solutions themselves. Such anorganisation is characterised by observance ofregulations, strict following of orders, excessivedependence on authority, a clear line ofcommunication, etc.

e)e)e)e)e)An ‘expert power-dominant’ climate indicates thatexperts, and people with skill and expertise areencouraged. They are influential in decision-

making, resolving conflicts and problems, and areregarded highly in the organisation.

f )f )f)f)f)A ‘control-dominant’ climate indicates that peopleenjoy status, power and authority for its ownsake, where managers like to control theirsubordinates, communication is selective only withsome people and is used as a mechanism ofcontrol, decisions are made by a few and onlythose powerful few dominate most of the decisions.

Role efficacyRole efficacyRole efficacyRole efficacyRole efficacyIn any organisation, the performance of people

basically depends on their own potential effectiveness,technical competence, managerial skills and experienceand the design of the roles they perform in theorganisation (Pareek, 1997). In fact, it is theintegration of individuals and their roles that ensurestheir effectiveness in the organisation. Thus, unlesspeople have the requisite knowledge, technicalcompetence, and skills required for their roles, theycannot be effective. However, if the role does notallow a person to use his or her competence and ifthe individual constantly feels frustrated in the role,the effectiveness is likely to be low. Hence, the verynature of role has built-in potential for conflict orstress. The closer the ‘role-taking’ i.e., respondingto the expectation of various other people, moves to‘role-making’ i.e., taking the initiative in designingthe role creatively so that the expectation of otherpeople and of the role occupant are integrated, themore the role is likely to be effective. This potentialeffectiveness may be called efficacy. In essence,role efficacy can be viewed as the psychologicalfactor underlying role effectiveness.

Dimensions of role efficacyDimensions of role efficacyDimensions of role efficacyDimensions of role efficacyDimensions of role efficacyPareek (1997) explains role efficacy as a

multi-dimensional concept. He concludes that thegreater the dimensions to a particular role, thehigher the efficacy of that role is likely to be. Thesedimensions can be classified into three groups. Thefirst is ‘role making’ as opposed to role taking. Thesecond is a set of role efficacy aspects and relatesto power enhancement of the role. This can becalled ‘role centring’ as opposed to role entering(where one would accept the role as given andreconcile to its prevailing level of importance orunimportance). Third is ‘role linking’ or extendingthe role to link with other roles and groups and canbe viewed in contrast with role shrinking (limitingthe role to narrow, work-related expectations). Thesethree main dimensions have been further subdividedand explained below:

1. Role making1. Role making1. Role making1. Role making1. Role making

(i) Self role integration(i) Self role integration(i) Self role integration(i) Self role integration(i) Self role integration

Every professional represents a uniquecombination of strengths and experience along witha basket of technical training, special skills andcontributions. Wherever role definition allows for the



38

maximum use of the special skills and strengths ofthe incumbent, the more effective and productive isthe role likely to be both for the employer as wellas the employee. This is called self role integration.To cite a case in an organization, a person waspromoted to a responsible position, which was seenas a reward and he was quite happy with the welldeserved promotion. However, he soon discoveredthat in the new position he did not have theopportunity to use his special skills of training,counselling, and organizational diagnosis. In spite ofthe fact that he performed well in the new role, hisefficacy was not as high as it had been in theprevious role. Once the role was redesigned toenable him to use his skills, his efficacy grewmanifold.

(ii) Proactivity(ii) Proactivity(ii) Proactivity(ii) Proactivity(ii) Proactivity

A person who occupies a role responds tovarious expectations that people in the organisationhave about that role.

(iii) Creativity(iii) Creativity(iii) Creativity(iii) Creativity(iii) Creativity

It is not just individual initiative that is importantfor ensuring efficacy. An opportunity to be creativeand to try new and unconventional ways of solvingproblems is equally important. If a person perceivesthat he has to perform only routine tasks, it can bedetrimental to higher role efficacy. If he feels thatthe role does not allow any time or opportunity tobe creative, efficacy is bound to be low.

(iv) Confrontation(iv) Confrontation(iv) Confrontation(iv) Confrontation(iv) Confrontation

In general, if people in an organisation avoidproblems or shift them to others, their role efficacywill be low. The tendency to confront problems andfind relevant solutions contributes to efficacy.

2. Role centring2. Role centring2. Role centring2. Role centring2. Role centring

(i) Centrality(i) Centrality(i) Centrality(i) Centrality(i) Centrality

If a person feels that the role he occupies iscentral to the organisation, his role efficacy is likelyto be high. If people feel that their roles areperipheral and is not very important, their potentialeffectiveness will be low. This is true for all personsand not only for those at the lowest level.

(ii) Influence(ii) Influence(ii) Influence(ii) Influence(ii) Influence

The more influence a person is able to exercisein his role, the higher his efficacy is likely to be. Animportant factor underlying higher motivation of theworkers is the space allowed for the use of discretionin decision-making. Roles have been found to bemore efficacious when workers are allowed to usediscretion.

(iii) Personal growth(iii) Personal growth(iii) Personal growth(iii) Personal growth(iii) Personal growth

Another factor which contributes to role efficacy

is the perception that the role provides the individualan opportunity to grow and develop. There areseveral instances of people leaving one role andbecoming much more effective in another primarilybecause they have greater opportunity to grow in thesecond role. In many institutions of higher learning,the roles of the research/teaching staff pose problemsof low efficacy. An important factor driving efficacydown in such cases is the lack of systematic growthopportunities within existing structures. Institutes thatare able to plan such growth succeed in increasingrole efficacy and, in turn, obtaining greater contributionfrom them.

3. Role linking3. Role linking3. Role linking3. Role linking3. Role linking

(i) Inter-role linkage(i) Inter-role linkage(i) Inter-role linkage(i) Inter-role linkage(i) Inter-role linkage

Linking one’s role with those of others in theorganisation increases efficacy. If there is a jointeffort to understand problems and find solutions,overall efficacy across roles involved is likely to behigh. Of course, the assumption is that people knowhow to work cohesively and effectively. Similarly, ifa person is member of a task group set up for aspecific purpose, his efficacy will be reduced if hetries to work without any linkages with other teammembers or stakeholders.

(ii) Helping relationship(ii) Helping relationship(ii) Helping relationship(ii) Helping relationship(ii) Helping relationship

If a person feels that he can get help fromsome source in the organisation whenever the needarises, he is likely to have higher role efficacy. Onthe other hand, if there is a feeling that no help isforthcoming when sought, or that the respondentsare hostile, role efficacy will be low.

(iii) Superordination(iii) Superordination(iii) Superordination(iii) Superordination(iii) Superordination

A role may have linkages with systems, groupsand entities beyond the organisation. When a personperforming a particular role feels that what he doesis likely to be of value to a larger group, hisefficacy is likely be high. In roles that offer opportunitiesfor the setting and fulfilling of superordinate goals,efficacy is enhanced. Similarly, roles in which thepeople feel that what they are doing is helpful to theorganisation in which they work ensure higher efficacy.

Role and work motivationRole and work motivationRole and work motivationRole and work motivationRole and work motivationRole efficacy contributes to work motivation;

role efficacy is the potential effectiveness of a personin the role. Pareek et al. (2003), cite severalfactors which contribute to role efficacy, for examplethe individual’s feeling of his role being central inthe organisation, self-role integration, possibilities forthe individual to use initiative and be creative,linkage of the role with other roles in the organisation,helping relationships in the organisation, opportunityto influence and to work on larger goal benefits toothers, opportunity of growth, etc. In fact, it may beuseful to measure role efficacy of several roles inthe organisation and take steps to raise it.

Satish Seth and M.S. Turan


39

Work motivation is partly in proportion to thechallenge the job provides to the individual. Someof the factors suggested by Herzberg (1967) asmotivators are very important for work motivation.Challenge in the job is one such factor. If a jobdoes not provide enough challenge to the individual,his motivation will be low. If a feeling of lack ofchallenge seems to be prevailing, it may be usefulto reverse the job content and do something to buildmore challenge in the job. This may be achieved bydelegation of more responsibility or expanding thescope of the job. Herzberg concludes that theopportunities to influence decisions increase workmotivation. Every individual should feel in his jobthat he is able to influence some decisions. This ispossible when there is some autonomy and freedomto the individual who is also able to receive it.Enough autonomy with adequate support and ademand for responsibility combine to increasemotivation. Each job may be examined to see howsuch autonomy and responsibility can be increased.Work motivation is directly related to the perceptionof opportunities of development and growth in thejob. If people feel that what they do in the job helpsthem to learn new things and contributes to theirdevelopment, the motivation will be high. Each jobshould be analysed from this point of view. Whenan individual reaches a stage where he may feelthat he is only repeating himself, the possibilities ofjob rotation to help him learn a new job may beexplored. This principle has some limitations asevery job cannot provide learning opportunities foreveryone at all times.

Pareek et al. (2003) emphasise that theperception that a person is contributing to a largergoal increases motivation. The importance of his jobmay be communicated to the employee and he maybe helped to see how his job is useful for thesection/department, for the organisation, for a largersection of the community, the profession and thesociety or for the nation. An employee’s perceptionof the context of his job in terms of its contributionto a larger goal contributes to his work motivation.

McClelland and Winter (1962) concluded thatan individual’s motivational pattern can be changed.Experiments and experience have shown that it ispossible to raise the level of specific needs in theindividual. For example, if an individual has lowachievement motivation, and if this concerns him,and he wants to raise his level of achievement, thiscan be done. It may be useful to provide opportunitiesto individuals to first get a picture of their motivationalprofile and then special programmes can be arrangedto help them raise the level of a specific psychologicalneed in which they may be interested.

According to McClelland and Burnham (1976)the performance directly contributes to work satisfationand is a direct result of effort and not vice-versa. Inorder to increase work motivation, stress should begiven on increasing the effort of the employees forgood performance. It is wrong to expect higherperformance directly from general satisfaction. Unlessrewards are related to efforts, the resulting satisfactionwill not lead to high performance.

Pareek et al. (2003) conclude that anindividual’s work motivation and capability to achieveincreases with the experience of success with graduallychallenging tasks. If an individual is helped toexperience success in achieving goals which graduallybecome more challenging, his motivation and capabilityfor higher achievement increases. It may be usefulto plan goals for an individual in a graduated seriesof challenges.

Call Centre IndustryCall Centre IndustryCall Centre IndustryCall Centre IndustryCall Centre IndustryIndustry watchers have dubbed the current decade

as the decade of ITES, and the call centre industryis perhaps the biggest component of ITES. A NASSCOMreport predicted the industry’s size to be a whopping20,000 crore by 2007-08 (NASSCOM, 2005). Itfurther estimated that during 2008, this segment willcreate employment for 2,70,000 people. Theinternational call centre segment is growing at therate of 50 per cent to 70 per cent. Prof. MichaelDertouzous of Massachusetts Institute of Technology(MIT) has predicted that India could earn as muchas US$1 trillion in the next five to seven yearsthrough low-end information technology (IT) activities,particularly, outsourcing and call centres. In fact,Indian call centres are poised to register the highestgrowth rate in the Asia Pacific region during thisphase. The Indian call centre industry currentlyemploys 1,60,000 professionals. The total employmentis expected to reach 6,00,000 by 2007. Thenascent business, however, is witnessing high ratesof attrition, making industry leaders sit up and takenote. The current average rate of attrition is estimatedbetween 30 per cent to 35 per cent.

The NASSCOM report has also cited reasonsfor the high attrition rate as ranging from monotonyof repetitive tasks to late hours of work and anunrelenting demand for consistent performance. Otherreasons include lack of career opportunities, especiallywhen it comes to vertical growth, seeking bettermonetary benefits or a change. Most research andtraining efforts undertaken to date in the Indian callcentre industry have focused on grooming employeesfor skills, knowledge and attitude, enhancement ofwork culture and attractive compensation packages.Whilst specific measures in these areas have helpedto enhance motivation level of employees and, as aconsequence, improve their work performances, theproblem of high attrition remains unresolved.

TurnoverTurnoverTurnoverTurnoverTurnoverIn many cases, turnover is a constant concern

for customer service centres. Because of the natureof the call centre agents’ job position, many supervisorsconsider turnover a necessary evil that needs to bedealt with on a continuing basis. Discussions withcall centre managers reveal that turnover is consideredsevere when related to budget considerations,customer service levels, and employee morale/productivity, etc. The loss of highly skilled employeesis one such factor. The attrition of first-rate employeescan be an irreplaceable loss for companies. Inaddition, constant turnover and recruiting can create



40

a negative impression about the company. The callcentre managers also state that turnover warrantsextra focus if a clear pattern begins to appear. Forexample, if there has been 50 per cent turnover inthe past year due to resignations, chances are thatsome fundamental problems exist within the companyand need to be addressed. If employees are alwaysleaving because of negative circumstances, this is ared flag that significant problems exist within theorganisation and that management practices, trainingand human resource (HR) policies need to berevisited.

A high turnover is a major problem for manycall centres and it challenges the management toidentify the causes of attrition and to know whyturnover is happening. It is important to know theexact reasons why agents leave in order to:

1. Identify the ‘controllable’ reasons and focus attentionon reducing the causes of these departures;

2. Accurately plan ahead for recruiting, hiring andtraining replacements at the same pace as youexpect agents to leave.

Some reasons for agent turnover are beyondthe control of the management. These departureswill occur regardless of how attractive the managementmakes it for agents to stay. The ‘non-controllable’turnover includes:

· Retirements;· Promotions;· Transfers to other departments within theorganisations; and

· Illness.

The ‘controllable’ turnover includes resignationsdue to:

· Job stress;· Low pay;· Lack of advancement possibilities; and· Lack of support and reward on the job.

BackgroundBackgroundBackgroundBackgroundBackgroundThe present study aims to diagnose the

motivational climate and role efficacy of an Indiancall centre, M/s. Callcen Ltd, located in Gurgaon,India. On the request of the management and forreasons of confidentiality, the name of the callcentre has been changed. It is a small-sized callcentre, set up with foreign collaboration in Gurgaonin 1995. At present it has about 350 graduate‘agents’ sitting in cubicles clonking phones to addresscustomer service queries that range from credit cardenquires to trouble shooting software problems fromcustomers all over the United States of America(USA). Because of the time difference betweenIndia and the USA these employees work from earlyin the evening, i.e., 1800 hours to early dawn,i.e., 0330 hours. They are exposed to thephenomenon of ‘accent’ stress. They also experiencea host of health problems, such as digestion, hair

loss, back pain and stress. Also of late it has beenfound that the necessary teamwork and collaborationwere not forthcoming and delays, such as backlogof waiting calls, were occurring on a daily basis.The senior management adversely commented uponthe functioning of the organisation. Several meetingswere held with the staff to understand the problemof the rising levels of inertia. Various views wereexpressed on how the work should be done, thestyle of management, delegation, accountability, etc.However, the visible improvement in the overallclimate and the operational efficiency, registered aswork backlog, did not reduce appreciably.

Objectives of the studyObjectives of the studyObjectives of the studyObjectives of the studyObjectives of the studyThe study has been carried out with the following

objectives in mind:

1 .1 .1 .1 .1 . To diagnose the motivational climate and roleefficacy of call centre agents (CCAs) in theorganisation i.e., M/s Callcen Ltd.

22222.To suggest suitable HR strategies with a view toenhancing the motivational climate and reducingthe current high attrition rate in the organisation.

MethodologyMethodologyMethodologyMethodologyMethodologyThe following methodology was adopted to

achieve the objectives:

1 .1 .1 .1 .1 . General data on the call centre industry in Indiawere obtained from primary and secondary sourcesthrough interviews, mailers, printed media and theInternet.

2 .2 .2 .2 .2 .Administration of questionnaire on motivational climate,i.e., motivational analysis of organisation (climate)[MAO(C)] and the role efficacy scale.

3 .3 .3 .3 .3 .Preparation and analysis of profiles on motivationalclimate and role efficacy.

4 .4 .4 .4 .4 .Discussion of the results of the analysis with keyorganisational members through unstructuredinterviews and recommending of suitable strategies/interventions for improving motivational climate inthe organisation.

Sample sizeSample sizeSample sizeSample sizeSample sizeThe questionnaire was administered to 50 call

centre agents. Of these, 39 responded, whichconstitutes almost 10 per cent of the population.

Instruments of the studyInstruments of the studyInstruments of the studyInstruments of the studyInstruments of the studyThe MAO(C) (Pareek, 1997) measures the

perceived motivational climate of an organisation.The purpose of this instrument is to arrive at thedominant motivational profile on six motives, i.e.,achievement, affiliation, extension, dependency, controland power. Eleven dimensions have been identifiedfor the purpose of measuring climate. The eleven



41

dimensions on which the motivational climate ismeasured are: orientation, interpersonal relationship,supervision, communication, decision-making, trust,managing problems, managing mistakes, managingconflict, managing rewards and risk-taking. Eachdimension has six statements, which have to beranked in terms of importance as perceived by therespondents. These eleven variables are consideredto be illustrative of organisational climate, if notexhaustive. This instrument not only measures theaggregate climate but also the climate for each ofthe variables.

The role efficacy scale, (Pareek, 1997), is astructured instrument consisting of 20 triads ofstatements which a respondent marks to describe hisrole most accurately. The three alternatives are pre-weighted. There are two statements for each dimensionof role efficacy and the scoring pattern followed is+2, +1 or -1. The scale is useful in a number ofdifferent situations. It can be used for role clarificationin team building, for coaching key managers, forproblem identification within a work team and fortraining managers and supervisors about the conceptof role efficacy. Role efficacy has ten dimensionsand the more these are present in a role the higherthe efficacy of the role is likely to be. The dimensionsare: centrality, integration, proactivity, creativity, linkage,helping, superordination, growth, influence andconfrontation.

ResultResultResultResultResultTable 1 gives mean rank values of the total

group for each dimension of organisational climatefor the six motivations. The lower the score, themore dominant is the motivational climate prevailingin the organisation. The results show that:

1 .1 .1 .1 .1 . Control is the dominant motivation, whichcharacterises the overall motivational climate.

2 .2 .2 .2 .2 .Dependency, ranked second, also indicates strongdominance.

S.No.S.No.S.No.S.No.S.No. Category Achievement Affiliation Dependency Extension Control Expert Category Achievement Affiliation Dependency Extension Control Expert Category Achievement Affiliation Dependency Extension Control Expert Category Achievement Affiliation Dependency Extension Control Expert Category Achievement Affiliation Dependency Extension Control Expertpowerpowerpowerpowerpower

1 Orientation 3.46 5.48 1.84 4.61 1.79 3.942 Interpersonal relationship 3.17 5.30 2.33 4.92 1.33 3.893 Supervision 3.92 5.48 2.33 4.46 1.43 3.304 Communication 3.28 5.94 2.20 4.69 1.61 3.175 Decision-making 3.25 5.28 1.89 5.10 1.87 3.306 Trust 3.61 5.58 1.92 4.38 1.48 3.237 Managing problems 3.28 5.35 2.20 5.17 2.15 3.238 Managing mistakes 3.43 5.41 2.28 4.74 2.23 3.029 Managing conflict 4.10 5.38 2.17 4.43 1.35 3.1710 Managing reward 3.71 5.12 2.10 4.92 1.76 3.2811 Risk-taking 3.58 5.35 2.12 4.76 1.66 3.53

TotalTotalTotalTotalTotal 38.7938.7938.7938.7938.79 59.6759.6759.6759.6759.67 23.2923.2923.2923.2923.29 52.1552.1552.1552.1552.15 18.6618.6618.6618.6618.66 37.1037.1037.1037.1037.10AverageAverageAverageAverageAverage 3.523.523.523.523.52 5.425.425.425.425.42 2.112.112.112.112.11 4.744.744.744.744.74 1.691.691.691.691.69 3.373.373.373.373.37Final ranksFinal ranksFinal ranksFinal ranksFinal ranks 44444 66666 22222 55555 11111 33333

3 .3 .3 .3 .3 .The difference between control (first rank) anddependency (second rank) is not significant.

4 .4 .4 .4 .4 .The difference between control and each of themotivations of expert power (third rank),achievement (fourth rank), extension (fifth rank)and affiliation (sixth rank) is significant.

The analysis further indicates that the dimensionsof ‘interpersonal relationship’ and ‘managing problems’show strong dominance over the control motivation.In the case of dependency, the dominant dimensionsare ‘managing problems’ and ‘managing mistakes’.

In addition to the diagnosis of overall motivationalclimate of the organisation the available data wasstudied with a view to assess the type of climateprevailing at each age group of management. Tables2, 3 and 4 show control to be the dominantmotivation in the motivational climate at the middleand junior age-group levels followed by dependency,ranked second. At the senior age-group level,however, achievement appears as the dominantmotivation followed by extension and expert power,ranked second and third, respectively.

Table 5 shows the correlation among the variousdimensions of motivational climate and role efficacy;a higher score between two variables means that ifone increases, the other also tends to increase or,conversely, if one is low the other also tends to below. A negative correlation between the two wouldindicate that if one variable is low, the other tendsto be high and vice-versa. Some of the valuesarrived at are statistically significant at 95 per centlevel. The results are summarised below:

1 .1 .1 .1 .1 . Control had negative correlation with achievement(-0.408), affiliation (-0.412), dependency (-0.121), expert power (-0.368) and extension(-0.433). Except for dependency, all the othervalues are statistically significant.

Table 1. The overall motivational climate in M/s Callcen LtdTable 1. The overall motivational climate in M/s Callcen LtdTable 1. The overall motivational climate in M/s Callcen LtdTable 1. The overall motivational climate in M/s Callcen LtdTable 1. The overall motivational climate in M/s Callcen Ltd



42

S. noS. noS. noS. noS. no Category Achievement Affiliation Dependency Extension Control Expert powerCategory Achievement Affiliation Dependency Extension Control Expert powerCategory Achievement Affiliation Dependency Extension Control Expert powerCategory Achievement Affiliation Dependency Extension Control Expert powerCategory Achievement Affiliation Dependency Extension Control Expert power1 Orientation 3.72 5.54 1.45 5.09 1.54 4.0022 Interpersonal relationship 3.18 5.54 1.81 5.36 1.18 4.0033 Supervision 4.00 5.72 1.90 4.90 1.00 3.3644 Communication 3.63 5.81 1.81 5.18 1.45 3.305 Decision-making 3.54 5.27 1.54 5.54 1.45 3.3666 Trust 4.18 4.90 2.18 4.63 1.18 3.3077 Managing problems 3.27 5.54 1.81 5.54 1.36 3.1888 Managing mistakes 3.90 5.81 1.90 5.18 1.36 2.8199 Managing conflict 4.00 5.36 1.90 5.27 1.00 3.361010 Managing reward 3.60 5.27 1.72 5.27 1.45 3.541111 Risk-taking 3.90 5.36 1.54 5.54 1.54 3.45

TotalTotalTotalTotalTotal 40.9540.9540.9540.9540.95 60.1260.1260.1260.1260.12 19.5619.5619.5619.5619.56 57.5057.5057.5057.5057.50 14.5114.5114.5114.5114.51 37.6637.6637.6637.6637.66AverageAverageAverageAverageAverage 3.723.723.723.723.72 5.465.465.465.465.46 1.771.771.771.771.77 5.225.225.225.225.22 1.311.311.311.311.31 3.423.423.423.423.42Final ranksFinal ranksFinal ranksFinal ranksFinal ranks 44444 66666 22222 55555 11111 33333

Table 2. The motivational climate of the junior age group (21-30 years)Table 2. The motivational climate of the junior age group (21-30 years)Table 2. The motivational climate of the junior age group (21-30 years)Table 2. The motivational climate of the junior age group (21-30 years)Table 2. The motivational climate of the junior age group (21-30 years)

Table 3. The motivational climate of the middle age group (31–40 years)Table 3. The motivational climate of the middle age group (31–40 years)Table 3. The motivational climate of the middle age group (31–40 years)Table 3. The motivational climate of the middle age group (31–40 years)Table 3. The motivational climate of the middle age group (31–40 years)

S.no S.no S.no S.no S.no CategoryCategoryCategoryCategoryCategory Ach ievementAch ievementAch ievementAch ievementAch ievement A f f i l i a t i onAf f i l i a t i onAf f i l i a t i onAf f i l i a t i onAf f i l i a t i on DependencyDependencyDependencyDependencyDependency Ex tens ionEx tens ionEx tens ionEx tens ionEx tens ion Cont ro lCon t ro lCon t ro lCon t ro lCon t ro l Expert powerExpert powerExpert powerExpert powerExpert power 1 Orientation 3.66 5.45 1.41 4.91 1.58 4.04 2 Interpersonal relationship 3.33 5.29 1.95 5.37 1.04 3.95 3 Supervision 4.29 5.41 1.87 4.75 1.16 3.25 4 Communication 3.5 6.00 2.00 4.91 1.33 3.16 5 Decision-making 3.5 5.29 1.41 5.41 1.75 3.16 6 Trust 3.79 5.87 2.08 4.66 1.33 3.29 7 Managing problems 3.66 5.25 1.87 5.54 1.41 3.25 8 Managing mistakes 3.54 5.79 1.87 5.08 1.54 3.08 9 Managing conflict 4.62 5.37 1.75 4.5 1.2 3.04 10 Managing reward 4.12 5.08 1.62 5.33 1.54 3.20 11 Risk-taking 3.7 5.33 1.87 5.04 1.41 3.62

Tota lTo ta lTo ta lTo ta lTo ta l 41.7141.7141.7141.7141.71 60.1360.1360.1360.1360.13 19.519.519.519.519.5 55.555.555.555.555.5 15.2915.2915.2915.2915.29 36.84 36.84 36.84 36.84 36.84Ave rageAve rageAve rageAve rageAve rage 3.79 3.79 3.79 3.79 3.79 5.46 5.46 5.46 5.46 5.46 1.77 1.77 1.77 1.77 1.77 5.045.045.045.045.04 1.39 1.39 1.39 1.39 1.39 3.34 3.34 3.34 3.34 3.34Final ranksFinal ranksFinal ranksFinal ranksFinal ranks 4 4 4 4 4 6 6 6 6 6 2 2 2 2 2 55555 1 1 1 1 1 3 3 3 3 3

Table 4. The motivational climate of the senior age group (41–50 years)Table 4. The motivational climate of the senior age group (41–50 years)Table 4. The motivational climate of the senior age group (41–50 years)Table 4. The motivational climate of the senior age group (41–50 years)Table 4. The motivational climate of the senior age group (41–50 years)

S. no S. no S. no S. no S. no CategoryCategoryCategoryCategoryCategory Achievement Achievement Achievement Achievement Achievement Affiliation Affiliation Affiliation Affiliation Affiliation DependencyDependencyDependencyDependencyDependency ExtensionExtensionExtensionExtensionExtension ControlControlControlControlControl Expert powerExpert powerExpert powerExpert powerExpert power 1 Orientation 1.5 5.5 5.5 1.5 3.75 3.25 2 Interpersonal relationship 2.25 5.0 6.0 1.0 3.5 3.25 3 Supervision 1.25 5.25 5.25 1.5 4.0 3.5 4 Communication 1.0 6.0 4.5 2.0 3.75 3.75 5 Decision-making 1.0 5.25 5.75 2.0 3.75 4.0 6 Trust 1.0 5.75 5.25 2.0 3.25 3.5 7 Managing problems 1.0 5.75 5.25 2.25 3.75 3.25 8 Managing mistakes 1.5 5.25 5.75 1.5 3.75 3.25 9 Managing conflict 1.25 5.4 5.4 1.75 3.0 3.5 10 Managing reward 1.5 5.0 6.0 1.5 4.0 3.0 11 Risk-taking 2.0 5.5 5.25 1.25 3.5 3.25

TotalTotalTotalTotalTotal 15.25 15.25 15.25 15.25 15.25 59.65 59.65 59.65 59.65 59.65 59.85 59.85 59.85 59.85 59.85 18.2518.2518.2518.2518.25 4040404040 37.50 37.50 37.50 37.50 37.50AverageAverageAverageAverageAverage 1.38 1.38 1.38 1.38 1.38 5.42 5.42 5.42 5.42 5.42 5.44 5.44 5.44 5.44 5.44 1.65 1.65 1.65 1.65 1.65 3.633.633.633.633.63 3.40 3.40 3.40 3.40 3.40Final ranksFinal ranksFinal ranksFinal ranksFinal ranks 1 1 1 1 1 5 5 5 5 5 6 6 6 6 6 2 2 2 2 2 44444 3 3 3 3 3


2 .2 .2 .2 .2 .The following negative correlations were alsoobserved, though values were not statisticallysignificant:

i.i.i.i.i. Achievement with affiliation (-0.101) anddependency (-0.249).

i i .i i .i i .i i .i i . Affiliation with dependency (-0.182) and expertpower (-0.194).

iii.iii.iii.iii.iii.Dependency with extension (-0.239) and expertpower (-0.115).

3.3.3.3.3. Achievement had positive correlation with expertpower (0.249) and affiliation is positively correlatedwith extension (0.24), though neither valueswere statistically significant.

4 .4 .4 .4 .4 .There was low correlation (almost zero) betweenexpert power and extension (0.08); Extensionhad also low correlation with achievement (0.61).

5 .5 .5 .5 .5 .Role efficacy had negative correlation with control(-0.389), dependency (-0.368) and


43

Table 5. The correlation of motivational climate and role efficacy dimensions Table 5. The correlation of motivational climate and role efficacy dimensions Table 5. The correlation of motivational climate and role efficacy dimensions Table 5. The correlation of motivational climate and role efficacy dimensions Table 5. The correlation of motivational climate and role efficacy dimensionsS. noS. noS. noS. noS. no AchievementAchievementAchievementAchievementAchievement Affiliation Affiliation Affiliation Affiliation Affiliation Dependency Dependency Dependency Dependency Dependency Extension Extension Extension Extension Extension Control Expert power Control Expert power Control Expert power Control Expert power Control Expert power Role efficacyRole efficacyRole efficacyRole efficacyRole efficacy1 Achievement - 0.101 - 0.249 + 0.61 - 408* + 0.249 - 0.1452 Affiliation - 0.182 - 0.24 - 0.412* - 0.194 + 0.0853 Dependency - 0.239 - 0.121 - 0.115 - 0.368*4 Extension - 0.433* + 0.08 + 0.1165 Control - 0.368* - 0.389*6 Expert power + 0.136*7 Role efficacy

* Values are statistically significant at 95 % level of confidence.

Senior age group Senior age group Senior age group Senior age group Senior age group Middle age groupMiddle age groupMiddle age groupMiddle age groupMiddle age group Junior age groupJunior age groupJunior age groupJunior age groupJunior age group Total group Total group Total group Total group Total group (41 – 50 years) (41 – 50 years) (41 – 50 years) (41 – 50 years) (41 – 50 years) (31 – 40 years)(31 – 40 years)(31 – 40 years)(31 – 40 years)(31 – 40 years) (21 – 30 years)(21 – 30 years)(21 – 30 years)(21 – 30 years)(21 – 30 years)

S.N.S.N.S.N.S.N.S.N. Dimensions Dimensions Dimensions Dimensions Dimensions 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Total 2 no. 1 no. -1 no. Totalno.no.no.no.no. no.no.no.no.no. no. no. no. no. no. no. no. no. no. no.

1 Centrality 3 1 - 4 3 3 5 11 4 13 7 24 10 17 12 39 2 Integration 2 2 - 4 4 2 5 11 6 14 4 24 12 18 9 39 3 Proactivity 2 1 1 4 8 2 1 11 19 2 3 24 29 5 5 39 4 Creativity 3 1 - 4 5 6 - 11 7 14 3 24 20 3 11 39 5 Inter-role linkage 2 1 1 4 5 2 4 11 1 18 7 24 8 21 10 39 6 Helping relationship 2 2 - 4 5 2 4 11 8 11 5 24 20 11 8 39 7 Superordination 2 2 - 4 8 2 1 11 10 7 7 24 20 11 8 39 8 Influence 3 1 - 4 3 3 5 11 4 14 6 24 10 18 11 39 9 Personal growth 2 2 - 4 6 2 3 11 12 7 5 24 20 11 8 39 10 Confrontation 2 2 - 4 9 1 1 11 14 5 5 24 25 8 6 39

Table 6. Frequency of persons with 2, 1 and -1 scores on role efficacy at three levels ofTable 6. Frequency of persons with 2, 1 and -1 scores on role efficacy at three levels ofTable 6. Frequency of persons with 2, 1 and -1 scores on role efficacy at three levels ofTable 6. Frequency of persons with 2, 1 and -1 scores on role efficacy at three levels ofTable 6. Frequency of persons with 2, 1 and -1 scores on role efficacy at three levels ofmanagementmanagementmanagementmanagementmanagement

Role efficacy indexRole efficacy indexRole efficacy indexRole efficacy indexRole efficacy index Senior age groupSenior age groupSenior age groupSenior age groupSenior age group Middle age groupJuniorMiddle age groupJuniorMiddle age groupJuniorMiddle age groupJuniorMiddle age groupJunior age group age group age group age group age group Total groupTotal groupTotal groupTotal groupTotal group(41 – 50 years)(41 – 50 years)(41 – 50 years)(41 – 50 years)(41 – 50 years) (31 – 40 years)(31 – 40 years)(31 – 40 years)(31 – 40 years)(31 – 40 years) (21 – 30 years)(21 – 30 years)(21 – 30 years)(21 – 30 years)(21 – 30 years)

Up to 50 - 1 2 3 51 – 60 1 3 9 13 61 – 70 1 4 9 14 71 – 80 - 2 4 6 81 – 90 2 1 - 3 Total Total Total Total Total 44444 1 11 11 11 11 1 24 24 24 24 24 3939393939


Table 7. Frequency distribution of role efficacy indexTable 7. Frequency distribution of role efficacy indexTable 7. Frequency distribution of role efficacy indexTable 7. Frequency distribution of role efficacy indexTable 7. Frequency distribution of role efficacy index

achievement (-0.145). Of the above, the firsttwo correlation values, i.e., control and dependency,are statistically significant.

6.6.6.6.6. Role efficacy was positively correlated with affiliation(0.085), extension (0.116) and expert power(0.136), though neither of these values arestatistically significant.

Table 6 shows the frequency of persons with 2,1, -1 scores on role efficacy for each dimensionin the senior, middle and junior age groups. Thedimensions of ‘proactivity’, ranked first, is dominant.This means that about 75 per cent CCAs in theorganisation like to initiate some activity. A highproactivity leads to an increase in the role efficacy.Confrontation or the ability to solve problems andnot shift them to others to tackle carries the nexthighest rank. Creativity, superordination, helpingrelationship and growth come next in rank. Thedimensions of centrality, integration, influence andinter-role linkage rank low and need to bestrengthened in order to increase overall roleefficacy of CCAs in the organisation, especially inthe junior and middle age groups.

Table 7 shows the frequency distribution ofrole efficacy index in the senior, middle and juniorage groups. It may be seen that about 70 per centof the CCAs in the organisation have a role efficacyindex ranging between 61 per cent to 70 per cent.At individual age group levels the figures are 50 percent, 64 per cent and 68 per cent in the senior,middle and junior age groups, respectively. As depictedin Table 6, the dimensions of centrality, influenceand inter-role linkage need to be strengthened toincrease the role efficacy of CCAs in the organisation.The higher the score for each dimension, the higherwill be the role efficacy in each age-group and theorganisation as a whole.

ConclusionConclusionConclusionConclusionConclusionThe results obtained on analysis of data were

thereafter discussed with some key organisationalmembers in the senior, middle and junior agegroups. Their responses were analysed and thebroad conclusions identifying the problems as facedby the organisation are as follows:


44 Satish Seth and M.S. Turan

1 .1 .1 .1 .1 . There is excessive control being exercised inmost age groups. Rules and regulations arestrictly enforced and work monitoring is close.

2 .2 .2 .2 .2 .‘Dependency’ has gradually set in because ofexcess control so much so that most matters,however trivial, get referred to senior managementfor decision-making or advice.

3 .3 .3 .3 .3 .There is a need to focus on improving suchdimensions of motivational climate as managingproblems, managing mistakes and inter-personalrelationships in the above context. An improvementin the overall motivational climate by reducingcontrol and encouraging democratic and participativefunctioning is necessary.

4 .4 .4 .4 .4 .Improvement in the motivational climate will contributeto enhancement of role efficacy, which can befurther increased by strengthening the associatedmotivations of achievement, affiliation, extensionand expert power.

5 .5 .5 .5 .5 .Increased role efficacy is also to be achievedthrough increasing dimensions of self-role integration,centrality, influence and inter-role linkage.

SuggestionsSuggestionsSuggestionsSuggestionsSuggestionsIn order to enhance the motivational climate

and reduce turnover, the following factors that impactturnover were discussed with senior management.There is a critical need to consider the implementationof some of the measures, suggested below, in theorganisation.

Recruitment, screening and orientationRecruitment, screening and orientationRecruitment, screening and orientationRecruitment, screening and orientationRecruitment, screening and orientationprogrammesprogrammesprogrammesprogrammesprogrammes

Recruiting techniques that simply bring in ‘warmbodies’ can raise turnover, while targeted recruitingwill result in higher retention levels. Screening processesshould identify people that are a good match for thejob requirements and fully inform applicants aboutthe reality of CCA job tasks. Finally, companyorientation that provide CCAs with a positive introductionto the company and an understanding of companyvalues establish a good relationship with employees.

Training and support of new graduatesTraining and support of new graduatesTraining and support of new graduatesTraining and support of new graduatesTraining and support of new graduates

Poor training programmes can raise turnoverwhen agents do not have the tools to do their jobwell and have the perception that the companyplaces little value on CCA tasks.

Quality of direct supervisionQuality of direct supervisionQuality of direct supervisionQuality of direct supervisionQuality of direct supervision

Good supervision ensures that CCAs have theinformation to improve their skills, as well as supportwith challenging job tasks. The degree to whichCCAs are treated fairly within the customer servicecentre ties in with job satisfaction. If management isbiased, uncommunicative or hostile to CCAs, theturnover will increase.

Competitive pay scaleCompetitive pay scaleCompetitive pay scaleCompetitive pay scaleCompetitive pay scale

Wages should be competitive with other jobopportunities in the area or CCAs will be lost tobetter-paying jobs.

Other employment opportunities in theOther employment opportunities in theOther employment opportunities in theOther employment opportunities in theOther employment opportunities in theareaareaareaareaarea

Other job opportunities with better advancementopportunities, challenges and skill development canbe introduced.

Level of job satisfaction and rewardsLevel of job satisfaction and rewardsLevel of job satisfaction and rewardsLevel of job satisfaction and rewardsLevel of job satisfaction and rewards

CCAs regularly deal with a stressful job. Burnoutlevels are high and can be aggravated if there arefew instances of job recognition and reward forexcellent performance. Agents can also be disatisfiedwith their job when they do not have the tools andwork processes to do a good job for their customers.

Attractive advancement opportunities withinAttractive advancement opportunities withinAttractive advancement opportunities withinAttractive advancement opportunities withinAttractive advancement opportunities withinthe companythe companythe companythe companythe company

Providing CCAs with career-pathing can oftenmotivate them to stay with a company.

Unplanned changeUnplanned changeUnplanned changeUnplanned changeUnplanned change

Poorly-managed change can lead to attrition. Ifnew systems, products, services or marketing aredone with no advance notice or if CCAs are leftuninformed about changes, turnover will increase.

References Herzberg, E. (1967). One more time: How do you motivate

employees? Harvard Business Review, 46, 53 – 62.

Likert, R. (1967). New ways of Managing Conflicts. p. 83-89.New York: Mcgraw Hill.

Litwin, G.H. & Stringer, R.A. (1968). Motivationalorganizational climate, Harvard University Press, Cambridge,15, 16-21.

McClelland, D.C., & Burnham, D.H. (1976). Power is thegreat motivator. Harvard Business Review, 54 (2), 100-10.

McClelland, D.C. & Winter, D.C. (1962). Motivating EconomicAchievement. New York: Free Press.

NASSCOM (2005). Report. Retrieved from File://C:/DOCUME-1/ADMIN1-1.JIMS/LOCALS/TEMP/296/NZVEL.htm on 23 Jun 2006.

Pareek, U. (1997). Training Instruments in HRD and OD. p.668.New Delhi: Tata Mcgraw Hill Publication Co. Ltd.

Pareek, U. & Rao, T.V. (1981). Designing and Managing HumanResource Systems. pp.125-127. New Delhi: Oxford & IBHPublishing Co.

Pareek, U., Rao, T.V. & Pestonjee, O. (2003). BehaviouralProcesses in Organisations. Pp. 241-244. New Delhi: Oxford &IBH Publishing Co.

Role of Management Information Systemin Indian Universities

AAAAAbstract:bstract:bstract:bstract:bstract: It is a well-known fact that every organisation, be it anindustry or a university needs an effective information system [IS]. An IS helpsthe management, i.e., planners and decision-makers to take timely decisions toachieve the desired goals. Therefore the role of a Management InformationSystem (MIS) becomes very important in a university in the present scenario.The present paper throws light on the role of management in Indianuniversities, its dimensions, functions, levels and its information requirements.The nuances of decision-making in university administration are also highlightedand discussed. The study also assesses the importance of IS in the decision-making process of the management. The concept of MIS and its componentsare discussed and its effectiveness in university management is reviewed atboth the international and national levels. Based on this review a computerisedMIS is proposed for the Indian universities and all its ramifications are alsodiscussed. Sangeeta Gupta*

H. Bansal**A. K. Saini***


NIVERSITYNIVERSITYNIVERSITYNIVERSITYNIVERSITY is a body of academic peopleengaged in the pursuit of academic matters.Like any other large-scale organization, a

university or an educational system consists of manyinterlocking and interdependent units or components;such as teaching departments, various branches,distance learning department, etc.

There are three levels of management, suchas top, middle and lower level. Top level managementdeals mainly with policy matters while lower levelmanagement implements these policies. Middle levelmanagement has to see how the policies laid by thetop management are implemented and get the workdone by the lower management.

Management Information System (MIS) whichis analogous to the term Information System (IS)plays a crucial role in the management of anycontemporary enterprise such as a small or mediumor large organisation, a profit-making or social serviceorganisation, a public or private sector undertaking,

* Mrs. Sangeeta Gupta, Research Scholar, Department of Business Management, Guru Jambheshwar Universityof Science & Technology, Hisar-125 001.

** Prof. H. Bansal, Dean & Chairman, Department of Business Management, Guru Jambheshwar University ofScience & Technology, Hisar-125 001.

*** Dr. A. K. Saini, Reader(IT), University School of Management Studies, Guru Gobind Singh IndraprasthaUniversity, Delhi-06.

a manufacturing or service sector organisation, alocal or global corporation or an upcoming orestablished business house. The fast changing sceneof globalisation, liberalisation, and competitiveenvironment combined with a never before emphasison quality, timeliness, innovation, client orientationand efficiency puts a premium on accurate super fastand timely dissemination of information across thewhole world. The unprecedented developments inthe field of computers and communication technologyhave indeed made such demands, realisable goals.Thus, a large portion of the world population has itsstake in computer based MIS.

This paper contributes conceptual framework forthe research study. It throws light on the concept ofMIS as well as its components namely management,information and system. Further, the role ofmanagement, its dimensions, functions, levels, theirinformation requirements etc. are also explained. Itevaluates the value and role of information andassesses the importance of information technology inthe decision-making process.


UUUUU


46 Sangeeta Gupta, H. Bansal and A. K. Saini

BackgroundBackgroundBackgroundBackgroundBackgroundDifferent schools of management have different

opinions regarding the concept of management. Everyschool of thought tries to consider only one aspector the other to explain the concept of management(Stoner, 1998). According to scientific management,management means determining scientifically the bestmethods for performing any task and for selecting,training and motivating workers. The classical schoolgrew out of the need to manage large and complexorganisations and explain management as attemptingto identify the principles and skills that are requiredfor effective management. The behavioral school, inwhich a group of management scholars are trainedin sociology, psychology and related behaviouraldisciplines, uses their diverse knowledge to proposemore effective ways to manage people in organisations.According to the management science school, themanagement scientist uses the mathematical techniquesfor modelling, analysing and solving managementproblems. According to the system approach, theorganisation is looked upon by the manager as aunified whole, directed system of interrelated andinterdependent parts and as a part of a larger,external environment. The contingency approach focuseson the interdependence of the many factors involvedin the management situations.

The most accepted definition of managementi.e. management is a distinct on-going process ofallocating inputs of an organization by typical functionsfor the purpose of achieving stated objectives (oroutputs). Every organization receives inputs, transfersthese inputs through the managerial functions/processes in an effective and efficient manner toproduce desired outputs (Dharminder and Gupta,2006).

Man a g emen t l e v e l s a n d t h e i rMa n a g emen t l e v e l s a n d t h e i rMa n a g emen t l e v e l s a n d t h e i rMa n a g emen t l e v e l s a n d t h e i rMa n a g emen t l e v e l s a n d t h e i rinformation requirementsinformation requirementsinformation requirementsinformation requirementsinformation requirements

To run a university effectively and efficiently,the top management has to perform the differentactivities of planning, organising, staffing, directingand controlling. So he/she requires information. Themain emphasis of IS is to generate informationwhich is required by the university authorities.

There are mainly three levels of managementin every university, i.e., (i) top level, (ii) middlelevel and (iii) lower level management (Rowley,1994).

(i) Top or strategic management:(i) Top or strategic management:(i) Top or strategic management:(i) Top or strategic management:(i) Top or strategic management: It performsthe activities of planning and strategy formulation.For example, in a university system, includesevolving strategies to start new academicprogrammes, offering vocational streams, offeringflexibility of duration through part-time or distancelearning programmes etc. The owner, which isthe Executive Council/University Court/AcademicCouncil; headed by the Chancellor/Vice-Chancellor,performs these functions, and is assisted by otherfunctionalities of the university.

(ii) Middle or tactical management(ii) Middle or tactical management(ii) Middle or tactical management(ii) Middle or tactical management(ii) Middle or tactical management::::: It isconcerned with overseeing the performance of theorganisation. This includes monitoring the extentto which the objectives are being met, and controllingthose activities that move the organisation towardsits goals. In a university system, the Heads ofDepartments/Chairpersons, Deputy Registrars andAssistant Registrars/Administrative Officers areassigned the responsibility of looking after variousoperational management personnel in each specificarea.

(iii) Lower or operational management(iii) Lower or operational management(iii) Lower or operational management(iii) Lower or operational management(iii) Lower or operational management::::: It isconcerned with the day-to-day operation of theactivities of the organisation. The primary concernsare schedules, deadlines, human relations, costand quality control etc. For example, the SectionOfficer/Superintendent/Clerk will ensure that thedaily work such as bills, cheque preparation, datesheet, declaration of result, preparation of detailedmark sheet, etc. is cleared. The teaching staff ofthe departments performs the duties of teaching,ensuring discipline in the departments, preparationof the time-table, evaluation and many otherduties assigned by the Head of the Department/Chairperson/University from time to time.

The main job of the competent authority is totake decisions based on the information gatheredfrom internal as well as external sources. The workof the top management is to make plans and sohe/she needs detailed information relating to theexternal environment. Thus, the information needs ofthe top management is more from the externalenvironment and this information is increasinglysummarised as it moves down to the middle andlower levels. While the information needs of thelower level is satisfied from internal information andit is generated within the organisation and it getssummarised as it moves up the successive levels ofmanagement, i.e., the upper levels.

Information systemInformation systemInformation systemInformation systemInformation systemIn the era of IT, the managements of universities

spend a large part of their valuable resources, suchas time, money and energy to generate, process,use and distribute information. Information, as message,has already been recognised as the sixth resourceof an organisation in addition to men, machines,materials, methods and money. Apart from thecommercial organisations, even the service organisations,such as hospitals, banks, insurance companies etc.,use information in their own way to serve theirclients, and a university is no exception. Generally,in service organisations information plays the majorrole as compared to the other resources of theorganisation (Forkner, 1973).

Information is the result or product of processeddata. Information can be defined as data that hasbeen converted into meaningful and useful form fora specific context for a specific user (O’ Brien,1999). The process that converts data into informationis known as IS. An IS is a network of steps that


49 Role of Management Information System in Indian Universities

The primary reasons that demand the introductionof computers so as to strengthen the IS are (Goyal,1993):):):):):

1 .1 .1 .1 .1 . To increase organisational efficiency through reductionin the overall costs/expenses.

2 .2 .2 .2 .2 .To provide useful, accurate, complete and timelyinformation to meet the requirements of the variousdepartments requiring such data.

3 .3 .3 .3 .3 .To improve managerial effectiveness in planning,allocating and controlling the scarce and expensiveresources of the organisation.

4 .4 .4 .4 .4 .To improve and ensure high quality of service ata reasonable cost.

5 .5 .5 .5 .5 .To improve the MIS.

6 .6 .6 .6 .6 .To reduce the clerical workload.

Therefore, in our view, a good university musthave an efficient real time communication network,which ensures that the pertinent data needed for theperformance of various activities can be retrievedupon demand, resulting in several benefits for theorganisation and its users alike.

Management information systemManagement information systemManagement information systemManagement information systemManagement information systemManagement information system is better known

by its acronym MIS. It provides the managers withinformation about the activities for which they needto make sound decisions. A few definitions of MISgiven by various management researchers are: (i)‘MIS may be defined as a set of well-knit scientificallydesigned procedures whereby raw “data” get convertedinto decision-based and control oriented “information”and continuously and regularly flow from one end toanother’ (Chatterjee, 1974), (ii) ‘Managementinformation system is a method of providing the rightinformation, to the right person, in the right form atthe right time’ (Jain, 1978), (iii) ‘MIS may bedefined as an organsed scientific method that willprovide timely, relevant and accurate information, ina meaningful form, of past, present and future,relating to internal operation of an organisation andexternal intelligence which enables management, atall levels to make decisions aimed at optimising(achieving) goals of the organisation’ (Mahalanabis,1974) and (iv) ‘MIS is a system that includes allcomponents, human as well as non-human andaids the process of management in an organisation’(Kapur, 1982).

Management information system inManagement information system inManagement information system inManagement information system inManagement information system inuniversitiesuniversitiesuniversitiesuniversitiesuniversities

In this section, the development and presentstatus of MIS in various international universities hasbeen reviewed.

In Sweden, the University of Uppsala hasproduced the first systems for salaries and studentregistration, which were adopted by most universities.A National Centre of Super Computers was created

and the universities were connected to it in anetwork. At present most universities have a localsystem, which allows the management to decidewhich data to produce for their needs (Furstenbach,1991).

The experience of Ceara University showedthat the development of a multi-institutional systemis advisable since it considerably reduces the costsand time of every institution in the group (Hirsh,1991).

In Brazil, a MIS was first developed in theUniversity of Sao Paulo in the late 1980s. The IShas various subsystems, such as flow ofdocumentation, finance, staff, academic affairs, libraries,university press and bookshops, academic productivity,electronic mail etc. The university had to arrange afive/six days training for institutional managers, facultyheads and managers of central administration on thewhole system and its use as a managerial tool. Thesystem now produces online managerial reports tosupport evaluations using performance indicators,planning and decision-making. The impact of thisexperience motivated several other Brazilian institutionsto adopt the same management information system(Marin, 1991).

A study of the MIS in Shantou University,China, where the system was set up in 1990,showed the stages of development of MIS where thebasis changed from mono-computer environment tonetwork environment; the operational pattern changedfrom mono-user to multi-user and the relation betweeneach sub-system changed from the state of beingindependent to the state of being interdependent(Sanyal, 1995).

In the Netherlands, the University of Twentehas a decentralised system of finance in which 73information processes are operated, which collect165 types of information in 10 clusters (education,research, social services, management control, finance,staff, material, project services, general services andcampus), each of which is covered by an informationplan, i.e., who needs what information and for whatpurposes(Schutte, 1991).

An information system necessarily must dealwith quantified data. Because of this, manyadministrators, particularly those dealing with academicprogramme have become concerned that the informationsystem will eliminate the quality factor fromconsideration. Several potential solutions exist. Theinformation system designer should be aware of thisdanger and attempt to avoid it. Management, too,must learn to utilise information system outputsinterpretively (Roger, 1973).

Besides universities, many other institutions havealso begun to provide training. Many private providershave come up to develop programmes in education,and in software development, India has made aheadway. A task force was set-up by the Ministry ofHuman Resource Development (MHRD), Governmentof India, on this aspect. The task force made manyrecommendations for the development of integrated


50 Sangeeta Gupta, H. Bansal and A. K. Saini

IS through networking at the university level (Sharma,2002).

Radical reforms, legal and managerial, in thesystem of governance of universities as well asacademics and examinations are urgently required.The application of IT in managerial activities in allacademic institutions of higher education should bemade mandatory (Dharm Vir, 2005).

MIS works at three levels of universityadministration, namely, operation level, tactical leveland strategic level.

The operational level of MIS consists of allthose sources of information which are under directcontrol of the university and with whom the universityhas to deal in its routine course of business. At thetactical level of MIS, information regarding decision-making is required. These decisions are specificallybased on the information collected from operationallevel sources. At tactical level information has itsimpact on the credibility of university decisions andon the short-term success of university functioning,the information has to be screened very carefully.Strategic information is usually supplied to all externaland controlling institutions. This information has tobe based on the operational and strategic levels andis supplied by higher authorities of universityadministration. As a result of recent developments inthe field of computer, electronic data processingsystem and information technology, it has becomepossible to develop a highly effective informationsystem for management planning and control in theuniversities (Kaptan, 1990).

The management of universities can be wellorganised, if we are able to convert the working anddecision-making process into the MIS model. TheMIS could effectively be used to simplify the decision-making process. An effective university managementinformation system needs a database suited to itsspecific goals and requirements. The importantcomponents of the university administration areacademic, examination, establishment and finance,in addition to others (Ahmad S., 2002).

ConclusionConclusionConclusionConclusionConclusionThe university comprises various sub-systems

for the smooth running of the total system. All thesub-systems need to be properly interlinked andcoordinated for effective functioning of the universityadministration. The application of computers hasincreased phenomenally in universities all over theworld for many reasons, including labour saving,improved revenue collection, high satisfaction ofstudents and staff and better planning. The Indianuniversities also must ensure that the new computertechnologies and procedures are employed effectivelyfor administration and management. The managementof Indian universities can be well-organised if it isable to convert its working and decision-makingprocess into an MIS. If the MIS of a university isequipped with modern equipments, particularlycomputers, it may bring fruitful results, i.e., information

would be optimally utilised. Therefore, to achievethe objective of an efficient university management,a computerised MIS is the only solution in front ofthe university administration in the twenty-first century.

References Achuthan, Sarla, Binod, C. & Agarwal, (1993). Computer

Technology for Higher Education, An Overview. New Delhi:Concept Publishing Company.

Ahmad, S. (2002, Nov. 18-24). Management InformationSystem; Tool to enhance efficiency of universitymanagement. University News, 40(46), 12-17.

Chatterjee, B.K. (1974, Aug.). Management InformationSystem: A Conceptual Framework. Management Accountant,9(8), 585-587.

Dharm, V., & Keya D. V. (2005, March 6). Tech Educationand Research: IITs show the way. The Sunday Tribune,Chandigarh. P.12.

Dharminder, K., & Gupta, S. (2006), Management InformationSystems: A Computer oriented approach for business operations,New Delhi, Excel Books, p. 93.

Forkner & McLeod (1973). Computerised Business System: AnIntroduction to Data Processing: p. 16. New York: John Wileyand Sons.

Furstenbach, J. (1991). Computerised Management inSwedish University in CRE Action, No. 95, 1.

Goyal, R.C., (1993). Handbook of Hospital PersonnelManagement: p. 241. New Delhi: Prentice Hall of India.

Hirsh, E. (1991). Paper for IIEP.

Jain, J.C. (1978, June) Management Information SystemConcepts. Chartered Accountant, 26(12), 761-767.

Kaptan, S. (1990, August 27). Management InformationSystem and University Administration. University News, 6-13.

Kapur, J. C. (1982, November). Management InformationSystems: A Conceptual Framework, Part-I. IndianManagement, 3-6.

Levey, S. & Paul, L.M. (1973). Health Care Administration: AManagerial Perspective: pp. 58-59. Philadelphia: J.B. LippincottCompany.

Lucas, & Henry, C. (1978). Information Systems Concepts forManagement: p. 5. New York: McGraw Hill Book Company.

Mahalanabis, D.K. (1974, June). The Concept ofManagement Information Systems. Management Accountant,14(6), 553- 558.

Marin, H. (1991, January). Computer aided management in highereducation: A model adopted by Brazilian Universities, Paper forCRE Colombus meeting.


51 Role of Management Information System in Indian Universities

Mehendiratta, P.R. (1984). University administration in Indiaand the USA. New Delhi: Oxford and IBH Publishing Co.

O’ Brien, J.A. (1999). Management Information Systems: p. 46.New Delhi: Tata McGraw Hill.

Roger, W.C. (1973). MIS in Higher Education. MIS:Management Dimension. San Francisco: Holden-Day Inc.

Rowely, J. (1994). Strategic Management Information Systemsand Techniques: pp. 5-6. Blackwell Publishers.

Sanyal, B.C. (1995, January). Report on Mission to China,UNESCO IIEP. Paris.

Schutte, F. (1991, January). Impact of information policy onuniversity management, Paper for CRE Colombus Meeting.

Sharma, G. D. (2002). Information technology for managementof higher education. Paper published in reading material ofleadership development programme, conducted by SocietyEducation and Economic Development, 1-23.

Stoner, J.A.F. (1998). Management: p.7. New Delhi: Prentice-Hall of India.

Abstract:Abstract:Abstract:Abstract:Abstract: The unprecedented rains in July of 2005 left Mumbai, andmuch of Maharashtra, in troubled waters. Despite the meteorological department’swarnings of ‘heavy to very heavy rains’ and educational institutions being closed,office goers went out in strength. To restore normalcy the dabbawalas (tiffin boxsuppliers) of Mumbai were in action and did a better job than any other official.They carried messages of the clients to their homes along with their tiffin boxes.The Mumbai Tiffin Box Suppliers Association is a well-organised profit-makingbusiness enterprise. It has been studied in the London School of Economics asan ‘amazing and excellent business model’. This paper discusses the strengths,weaknesses, opportunities and threats of the dabbawalas to analyse theirefficiency during the worst conditions, such as the monsoons.

Sanjeev Bansal*D. Surekha Thakur**

*Prof. Sanjeev Bansal, Professor & Incharge, Ph.D programme, Amity Business School, Amity University, UP.

**Ms. D. Surekha Thakur, Academic Programme Officer , Amity Business School, Amity University, UP.

SSSSS


ADDLEDADDLEDADDLEDADDLEDADDLED with a growing population in thelate nineteenth century, new settlements, furtherfrom the original in the Old Fort complex,

started cropping up in Mumbai. Ballard Pier and Fortstill remained the business centres and they housedmost of the banks, government departments, insurancehouses, shipping companies, etc. The history of tiffinbox carriers runs parallel to the history of Mumbai’sdevelopment. The origin of the dabbawalas can betraced to the year 1890. Though most of thedabbawalas are illiterate they are the ultimate practitionersof logistics management. They follow the perfectTime-Management Theory and Supply ChainManagement principles. They seem to have beenfollowing these strategies long before these termswere even identified.

In 1890, a Parsi broker working in Ballard Pieremployed a young man, who had come down fromPune district, to fetch his lunch every afternoon. Hisbusiness picked up through referrals and soon thepioneer tiffin-carrying entrepreneur had to call formore helping hands from his village. Though therewere no umbrella organisations for the carriers then,the first informal attempt to unionise was made byMahadev Havji Bacche in 1930. A charitable trustwas registered in 1956 under the name of ‘NutanMumbai Tiffin Box Suppliers Trust’. Even today everycarrier is expected to contribute Rs 15 per monthtowards the trust.

The legendThe legendThe legendThe legendThe legend

The commercial arm of the organisation wasregistered quite later in 1968 as ‘Mumbai Tiffin BoxCarriers Association’. With recruitment essentially beingcarried out through word of mouth, the majority ofthe carriers hail from neighbouring towns and villagesin western Maharashtra. They have a strong socialbond, common language and pride in whatever theydo. The system is similar to the postal system; thetiffins are collected, sorted out, and sent to theirdestinations based on a numerical and alphabeticalcode. Every station has a numerical code and eachplace has an alphabetical code. The tiffin carries thecode of the source and the destination. The codeshelp to identify each tiffin owner. The strength of thesystem depends on common protocols, disciplinesand a shared agenda.

Virtually all dabbawalas are migrants from ruralvillages near the city of Pune, eighty miles southeastof Mumbai, and obtain their jobs and learn the tradethrough family ties. They wear the traditional whitecap and clothing of their region. In ‘Mumbai’sDabbawalla: Omnipresent Worker and Absent City-Dweller’, an article in the March 29, 1997, issue ofMumbai’s the Economic and Political Weekly, theFrench researcher Alexandra Quien explains that thecarriers identify themselves as Marathas, a Hindugroup with a martial heritage, and their namessuggest roots in the Kunbi agricultural caste. Theirfamilies, often poor, remain in the villages, and thedabbawalas’ earnings help support them and finance



53

the expansion of their farms. The tiffin carriers visittheir home villages frequently and usually retire there.

According to a dabbawala, ‘Our confidence ismade tough by sheer practice. Travelling the toughestroads of Mumbai on our bicycles no matter whathurdles may lie ahead, the destination is reached.But the sum of Rs. 4000 received per month is notenough to survive in the city like Mumbai. I sendRs. 2500 to my family in my village. My familyconsists of my wife, two sons, one daughter and myold father who is sick.’ The life of a dabbawala isat stake at every bend of the road along with thefuture of the family, which is questionable.

The Management Gurus have recognised the‘Mumbai Dabbawalas’ as the best example in thefield of Network Management and Supply ChainManagement. For years, Mumbai’s legendary lunch-delivery system run by mostly illiterate ‘dabbawalas’was an institution that did not go beyond the city’sborders. Now the low-tech network, known for itsclockwork precision delivering dabbas (metal lunchboxes), or tiffin (lunch), is giving tips to the highcorporate flyers on the basics of management andplanning.

The strategies followed by the Mumbai dabbawalasare Supply Chain Management principles, which theyhave not studied in any school for they were mostlyilliterate. The experience gained by them is totally bypractice of logistics.

IssuesIssuesIssuesIssuesIssuesThe dabbawalas are very determined lot. There

is no hierarchy of boss and employee. This issomething very radical but very useful in business.When you have to deliver, irrespective of bad weatheror late trains, having that kind of ownership in thebusiness evokes a high level of dedication frompeople in the logistics network. Following are theissues, which are carried out by dabbawalas.

1 .1 .1 .1 .1 . Mare, a dabbawala, for instance, handles 5000tiffin carriers, which supply food to 2 lakh officegoers every day. But there is little reward for hislabour.

2 .2 .2 .2 .2 .The growing commuter traffic on suburban trainsand rising costs of living in Mumbai and thetorrential rains have made the going tougher eachyear for ‘Nutan Mumbai Tiffin Box Suppliers Trust’.But good, bad or indifferent, it is a business theyhave built together and understand really well.

3 .3 .3 .3 .3 .Rains are evident but the Brehanmumbai MunicipalCorporation (BMC) should take more measuresin building a proper system to safeguard the cityfrom such calamities and stop flooding of water instreets.

4 .4 .4 .4 .4 .The dabbawalas have to battle a crush of peoplein sweltering stations, broken elevators which oftenforce them to climb dozens of flights, torrentialmonsoon rains and speeding taxi rivers that threaten

to upset their tiffin carts. Still, the lunch boxesreach offices between 11.45 am and 12.30 pm.

5 .5 .5 .5 .5 .Since the operational infrastructure is huge, theproblems can crop suddenly and unceremoniouslyduring monsoons.

6 .6 .6 .6 .6 .To avert any sudden crises, the appropriate alternativereplacement for both men and material must be inplace to cope with the exigencies of the situation,for example, a sudden break down and cripplingof the railway system, the accident of a field staff,natural calamities ravaging the city, (such asearthquakes, torrential rain), and terrorist activities,(such as the 1990’s bomb blast throwing normallife out of gear).

7 .7 .7 .7 .7 .The additional financial obligations arising from theemerging threats should also be taken intoconsideration. For coping with sudden financialliabilities accruing on account of natural calamities,such as the Mumbai floods, the ‘Mumbai TiffinBox Carriers Association’ should outsource itsbusiness, efforts and alternative transportation sourcesfor the delivery boys and the overall requirementof the working capital. The management shouldadequately provide for the inflationary trend in theeconomy while formulating the policy decisions.

8 .8 .8 .8 .8 .In the July, 2005 rains, the dabbawalas wadedin water and ensured that their customers receivedtheir meal. The Municipal Corporation of GreaterMumbai (formerly Bombay Municipal Corporation)or the BMC, which is the richest municipalorganization of India, could make more effort toresolve the situation by strengthening the infrastructureto a greater extent.

Marketing strategyMarketing strategyMarketing strategyMarketing strategyMarketing strategyThe medium through which business is picked

up is referrals, that is, word of mouth. Each day theclientele increases and so does the number of thedelivery boys. The charge is Rs. 325 per client permonth, which is affordable by the working class. Therecruitment policy is such that even before a newrecruit leaves his hometown for Mumbai, his area ofoperation and remuneration are decided. Typically acarrier averages about Rs. 4000 (US$85) permonth and this is attracting a lot of educated youthwho are finding it tough to break into the white-collar ranks of the city.

The journeyThe journeyThe journeyThe journeyThe journeyThe journey of each lunch begins early in the

morning from the home as food cooked by a devotedwife or mother while her husband or son is enduringthe crush in the train. She arranges the rice, dhal,subzi, curd and parathas into cylindrical aluminumtrays, stacks them on top of one another and clipsthem together with a neat little handle. This tiffinbox, unlike a slim paint tin, is the lynchpin of thewhole operation. When the runner calls to collect itin the morning, he uses a special colour code onthe lid to tell him where the lunch has to go. At the



54 Sanjeev Bansal and D. Surekha Thakur

end of his round, he carries all the boxes to thenearest railway station and hands them over to otherdabbawalas for the trip into town. Between leavingthe wife and reaching its final destination, the tiffinbox will pass through at least half a dozen differentpairs of hands, carried on heads, shoulder-poles,bicycle handlebars and in the brightly decoratedhandcarts that plough with such insouciance throughthe midday traffic. Tins are rarely, if ever, lost, andalways find their way home again (before the clientreturns from work) to be washed up for the nextday’s lunch.

As every tiffin-box had to travel to and fro,mapping every box to its carrier was crucial. For thispurpose, some carriers started tying string to theirboxes while others used colorful wires and threads.But soon these methods were found inadequate asthe number of tiffin boxes grew exponentially. So inthe early 1970s, the senior founder members of theassociation decided to implement a new system ofworking where box codes and markings were uniformfor all carriers.

For example, if a client is a resident of Thaneand his office is located on the third floor of MafatlalCentre at Nariman Point, the code would be somethinglike 9 MX 3 on top, where 9 points to the carrierwho delivers in Nariman point, MX for MafatlalCentre and 3 for third floor. The number 10T belowit, where 10 is the code for Church Gate stationwhere the box is off-loaded, followed by alphabet T,where T stands for Thane, the railway station oforigin.

So whenever the tiffin-box is collected from aclient’s residence and brought to Dadar railway station,it is kept with the boxes headed for Church Gatestation. At Church Gate, the carrier whose code is9, picks up all the boxes marked for him andproceeds for Nariman Point. In Mafatlal Centre heleaves this particular box outside the lift or outsidethe client’s office on the third floor. During hislunchtime, the client fetches his tiffin-box, completeshis lunch and puts the empty box in the same placeoutside the lift for the carrier to collect it back. Thereturn journey takes the same route. There is hardlyany daily contact with the client. The carrier meetsthe client only on the first day of the delivery toverify the address and to show the spot where theboxes will be kept.

Enduring factorsEnduring factorsEnduring factorsEnduring factorsEnduring factorsFollowing are the enduring factors which are

briefly discussed:

1 .1 .1 .1 .1 . Plentiful commuters;

2 .2 .2 .2 .2 .Presence of an efficient and widespread railwaynetworks;

3 .3 .3 .3 .3 .Large distances between places or residents andwork.

Every day about 2,00,000 meals are deliveredby this operational system at an average cost of Rs.325 per month with an annual turnover of Rs.50,000,000 and 4500 carriers who meet andexchange lunch-boxes at public places like the railwaystation without ever causing a jam or any confusion,just like a well-oiled olympic relay team. Lunch-boxes are sorted and exchanged in a jiffy, withabsolutely zero documentation involved. Yet rarelyhas it happened that a lunch has missed its destination.

AppreciationAppreciationAppreciationAppreciationAppreciationIn 1998, the Forbes Global magazine conducted

a quality assurance study on the dabbawalas’ operationsand gave it a Six Sigma efficiency rating of99.999999; the dabbawalas made one error in sixmillion transactions (Venkatesh, H. 2006). Thatput them on the list of Six Sigma rated companies,along with multinationals like Motorola and GE. Achievingthis rating was no mean feat, considering that thedabbawalas did not use any technology or paperworkand that most of them were illiterate or semi-literate.

AnalysisAnalysisAnalysisAnalysisAnalysisThe unprecedented rains of July 2005 left

Mumbai, and much of Maharashtra, in troubled waters.There was no accountability in the city and on July26, people were left to fend for themselves. Despitethe meteorological department’s warnings of ‘heavyto very heavy rains’, office-goers were out in strength.There was a little help, but not to the extent so asto reduce the pain for people drastically. The floodreceded on its own and the suffering of peoplereduced further by the action from Maharastra StateGovernment and the Government of India. Thedabbawalas were in action and they carried messagesof the clients to their homes along with their tiffinboxes. The Mumbai dabbawalas made it possibleand, therefore, ‘Salaam Mumbai and SalaamDabbawalas’.

The Mumbai Tiffin Box Suppliers Association isa well-organised profit-making business enterprise.With the account given above it can be understoodthat it has not only trained their dabbawalas inSupply and Chain Management but has also taughtthem the human values, which set the dabbawalasas a perfect model to study. After the internalanalysis of the Mumbai Tiffin Box Suppliers Associationthrough Strengths, Weaknesses, Opportunities andThreats (SWOT), this analysis has been implementedto study the efficiency of the dabbawalas during theworst conditions of the monsoons.

StrengthsStrengthsStrengthsStrengthsStrengthsThe service is uninterrupted even on days of

extreme weather, such as Mumbai’s characteristicmonsoons. The customers know the local dabbawalasat the receiving and the sending ends personally, sothere is no question of lack of trust. Also, they arewell accustomed to the local areas they cater to,which allows them to access any destination with


55

ease. Occasionally, people communicated betweenhome and work by putting messages on chits insidethe boxes. Of course, this was before thetelecommunications revolution.

WeaknessesWeaknessesWeaknessesWeaknessesWeaknessesWhile Mumbai takes riots and political upheaval

in its stride, it has no answer when the weatherturns foul. Heavy rains in Mumbai disrupt rail androad traffic even as gusting winds uproot more than100 trees bringing normal life to a complete standstillin India’s business capital. For the rail commuters,especially for the dabbawalas, the day starts with along, tiring wait for trains and getting drenched inthe rain. The dabbawalas are totally dependent ontransportation and any disruption in it may stop theirroutine activity. They have to find alternative means.

OpportunitiesOpportunitiesOpportunitiesOpportunitiesOpportunitiesEven when trains are marooned on the tracks,

many dabbawalas jump to get across to the nearestroad to board a bus or taxi or even hitch a ride ona cycle. Work ethics in a city like Mumbai is highand most people try their best to get to work evenin the worst weather conditions.

Many national and international interests aretaking initiatives to study the Mumbai dabbawalatechniques and funds are donated to the associationfor the welfare of the dabbawalas. The MTBSA(Mutamumbai Tiffin Box Supplier Association) isplanning new schemes to help its members andshareholders by implementing the short-term loanscheme, medical facilities and insurance to thedabbawalas. The daily routine of the dabbawalasmakes them accident-prone, their families are totallydependent on them and, therefore, the MTBSA shouldsee to it that some sort of insurance and benefit isprovided to their families.

ThreatsThreatsThreatsThreatsThreatsAt least 190 trains were delayed and 51 cancelled

during the Mumbai floods due to signal problemsand waterlogging in Bandra, Mahim, Parel and MumbaiCentral. Even long distance trains were delayedthough they began running on time by the afternoon.The Central Railway, too, had its share of delaysand cancellations with trains running 30-45 minuteslate until 10.30 am. Mumbai has better drainagesystem than most other cities in India. But it has ahuge population, and a worse traffic scenario. Trafficjams stretch for miles along the roads. Subways andside routes get closed off due to flooding, and thepressure falls on the main routes. At least in thewestern suburbs, the flooding of Andheri subway andother parallel subways lead to a very high pressureof traffic on SV Road and the Western ExpressHighway, and cause endless traffic jams with therailway services being disrupted.

Teaching notesTeaching notesTeaching notesTeaching notesTeaching notesThe analysis and the data suggested above in

the case study accept that it would not be anexaggeration to say that life in India revolves aroundthe monsoons. From crops and drinking water toweddings and festivals, the rains determine all. Onthe lifeline of Mumbai, both the Central and WesternRailways were completely disrupted and came to agrinding standstill. Thousands of commuters werestranded on the way home or were in their officesfar away from home. But true to character, the cityresponded to the crisis in amazing fashion, notforgetting the challenges faced by the Mumbaidabbawalas.

Does corporate India feel there is anything tobe learnt from the dabbawalas’ business? From theway the business chambers have been applaudingthe dabbawalas’ enterprise, certainly, yes. Cruciallearning includes how this ‘Nutan Mumbai Tiffin BoxSuppliers Trust’ stays in touch with its business onthe ground even in crises like the Mumbai rains,how it has grown incrementally on sound financials,and how the ownership and functional structureswork in a way that foster commitment. Members ofthe ‘Nutan Mumbai Tiffin Box Suppliers Trust’, or thedabbawalas, are a common sight in the city’s suburbantrain routes. Everyday, they deliver 1,75,000 tiffinsfull of home-cooked meals to the office goers. Addthe empty boxes they take back to the respectivehomes and that adds up to a staggering 3,50,000transactions a day. But that is not why the Forbesmagazine featured them. What amazed logistics expertswas how the semi-literate people get the job donewith practically no mix-ups at all? In fact, theForbes study gave the dabbawalas a Six Sigmarating. In other words, only one in a million deliveriesby the dabbawalas are to the wrong party!

Questions for disscussionQuestions for disscussionQuestions for disscussionQuestions for disscussionQuestions for disscussion1 .1 .1 .1 .1 . Although the Mumbai dabbawalas have becomeso famous world wide, in what way is their fameconsidered to be making their life easy?

2 .2 .2 .2 .2 .What are the crucial challenges faced by thedabbawalas during monsoons?

3 .3 .3 .3 .3 .What are the initiatives suggested to be taken bythe Maharastra State Government and theGovernment of India to prevent situations like theMumbai floods?

References BBC News: India’s tiffinwalas fuel economy.

Blue Peter episode on Monday, 27 September 2004 (summerexpedition report).

Dabbawalla Moves to Silicon Valley.



56

Hart, Jeremy. “The Mumbai working lunch”, TheIndependent Online, The Independent group, London,19-03-2006 Retrieved on March 20, 2007.

indianmba.com retrieved on January 18, 2006.

“Indian lunchbox carriers to attend the Royal nuptials”,Evening Standard (London), Associated Newspapers Ltd,2005-04-05. Retrieved on March 20, 2007.

Karkaria, Bachi. “The Dabba Connection”.

Management Mantras from Mumbai Dabbawallas. Postedon Sep 5th, 2006.

Online edition of India’s National Newspaper Tuesday,3 Aug. 2004.

Thakker, Pradip, Mumbai’s amazing Dabbawalas,rediff.com, 11 November 2005.

Venkatesh, H. 2006, What you can learn from a dabbawallaJanuary 25, 2006.

Sanjeev Bansal and D. Surekha Thakur

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References: Books (Citation)

Zeithaml, V.A., Parasuraman, A. & Berry, L.L. (1990).Delivering Quality Service: Balancing CustomerPerceptions and Expectations: p.18. New York: The FreePress.

Edited Book

Harrington, D.M. (1990). The Ecology of Human Creativity:A psychological perspective. In Runco, M.A., & Albert,R.S., (Eds). Theories of creativity (pp. 143-169). NewburyPark, CA: Sage.

Book by a Corporate Author

Committee of Public Finance. (1979). Public finance. NewYork: Pitman.

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References: Articles (Citation)

Weekly Magazine/Article:

Singh, N. and Srinivasan T.N. (2005, May 21-27). ForeignCapital, Deficits and Growth. Economic and PoliticalWeekly, XL, (21), 2196-2197.

Monthly Magazine/Article:

Gupta, K. (2005, May). Durables: On a Fast Track. Pitch11(8), 42-50.

Professional Journal (continuous pagination)

Taylor, M.A. & Callahan, J.L. (2005). Bringing creativity intobeing: Underlying assumptions that influence methods ofstudying organizational creativity. Advances in DevelopingHuman Resources, 7, 247-270.

(Re-paged issue)

Prasad, T. (2005). Mandi: A Field Sales Campaign for TeachingPersonal Selling Skills through Experiential Approach. IIMBManagement Review Advances in Developing HumanResources, 17(1), 87-94.

13(C) Other References (Citation)

Newspaper article

Maira, A. (2005, February 25). Putting humanity intocapitalism. The Economic Times. P.16.

Computer Software

Soldan, T.J. & Spain J.D. (1984). Population growth[Computer software]. City, state (2 letters): Conduit.

Electronic Database

U.S. Department of Labor (1991). What work requires ofschools. Retrieved August 15, 24, from http://wdr.doleta.gov/SCANS/whatwork/whatwork.pdf

Paper Presentation

McCollum, E.E. & Callahan, L.L. (22, November). Thenarrative assessment interview: The use of a psychoanalytictool to evaluate a leadership development program. Paperpresented at the American Evaluation AssociationConference, Washington, DC.

Ph.D. Thesis

Antony, D. (2005) “Human Resource Development Practicesand their impact on Organizational Effectiveness (A Studyof Selected Industrial Organizations)”, Ph.D. Thesis,University of Delhi, Delhi.

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Board, TIAS, and formerAmbassador to USA,

receiving memento fromShri R.K. Gupta,

Chairman, Tecnia Groupof Institutions.

Dr. T.K. Bhaumik, ChiefEconomist-RIL, Mr. ArunGoel, Journalist and Dr.

N.K. Bhardwaj speakers ina Seminar on

"WTO–Retrospect &Prospects" at TIAS.

Dr. R.K. Dhawan,Chairman, (Northern

Region), FIEO, delivering aspecial talk on "India-

China: BusinessOpportunities".

Dr. R.K. Dhawan, FIEO,and Prof. DebashisChakraborty, IIFT

speakers in a Seminar on"Intellectual Property

Rights" jointly organisedby TIAS & FIEO.

Dr. C.S. Venkata Ratnam,Director, IMI conducting

FDP on "Role of Faculty inManagement Institutions"

at TIAS.

Where Dreams are Chiselled into Reality


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Madhuban Chowk, Rohini, Delhi-110 085Ph.: 011-27555121-124, Fax: 011-27555120E-Mail: [email protected], Website: www.tiasindia.org


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Understanding the Agreement on Agriculture under World Trade Organisation



Role of Management Information System in Indian Universities


M. Birasnav & S. Rangnekar

Madan Lal

P. Kameswara Rao

Anil P. Dongre

Swaranjeet Arora, Abhijeet Chatterjee & Anukool M. Hyde

Satish Seth & M.S. Turan

Sangeeta Gupta, H. Bansal & A. K. Saini

Sanjeev Bansal & D. Surekha Thakur

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