the business journalfalling talks between the world's largest & the second largest...

UNNATIVOLUME : 6 ISSUE : 1 ISSN 2319-1740

January - June 2018

The Business Journal

Indian Citation IndexScientific Journal Impact FactorScientific Journal Impact FactorScientific Journal Impact Factor

SJIF IMPACTFACTOR = 5.912

Dr. Sharad ChaturvediProfessor - Operation

Fortune Institute ofInternational Business

New Delhi

Dr. Kaneez Fatima SadriwalaAssistant Professor

A/HOD, Department of Accounting, College of Economics Managementand Information Systems, University of Nizwa, Sultanat of Oman

ProfessorSchool of Management

JECRC UniversityJaipur

Professor Marketing & StrategySchool of Business Public

Policy and Social EntrepreneurshipAmbedkar, University, Delhi

,

Managing Editor Administrative EditorEditor - in - Chief

I N D E X

A Study of Application HR analytics and its Effect 1on HR Workforce Planning

MVS Murthy, Dr. Uttamkumar M. Kinange

Awareness and Perception of Goods and Service Tax 6(GST) by Chartered Accountant: An Analytical Study

Dr. Ravneet Kaur, Dr. Rimpi Saluja, Dr. Ritu Soni

A Study of Purchase Involvement of Student Towards 14Branded Apparels in the City of Indore

Dr. Satnaam Kaur Ubeja, Prof. Arpit Loya, Prof. Prayatna Jain

A Study on Sustainability and Improvement of Quality in Health Care : 21Compliance of Kayakalp - Quality Standards

Dr. Pallavi Mehta, Bhagirath A Chavda

Corporate Social Responsibility and Issues in India 25

Dr. Nitin Gupta, Chetna Sharma

Customer Co-creation: Strategic Tool for Customer Engagement 31

Neha Sahu, Nidhi Jhawar

Digitalization Strategy for Reshaping Business and Economy: A Case of 38

Manufacturing Sector

Dr. Shubhi Dhaker, Rupali Visen

Exploring Focus Area of Car Dealers and Consumers Regarding 4c's 45

Shirin Ruhi Qureshi

Welcome to the Workcafe 53

Arthur Fernandes, Dr. Uttam Kinange

Initiatives for Financial Inclusion in India 57

Dr. Dilip K. Chellani

Impact of HR Practices on Business Performance 63

Dr. Bhavesh Vanpariya

Linking Infrastructure Growth with Human Development: Evidences from Gujarat 78

Pratham Parekh

Participation and Empowerment of Women : A Study of MGNREGA 86

Prerna Bhati

A Study on the Implications of Multigenerational Diversity in Academic Workplace 94

Parul

The Contextual Antecedents of University Faculty's Work Related Perceptions and 100Satisfaction Sense-making in NCR (An Age Based Perspective)

Pooja Kalra, Dr. Nidhi Gupta

An Empirical Investigation on Content Preference of English Newspaper 106Reader in Bangalore City

Dr. Kiran. G

Measuring Effectiveness of Omni-Channel Retailing in India: A Competitive Strategy 116

for Organized Physical Retail Stores

Dr. Krishan K. Boora, Kiran

Overcoming Professional Stagnation: A Study of Talent Management 122

Practices at Airtel

Dr. Sheenu Jain, Dr. Swati Soni, Tejveer Kaur

The Study of Private Sector's Role in Agricultural Extension Services 132

Varsha Singh, Janmay Singh Hada

To Study the Financial Inclusion Through the Digital India Programme 141

Dr. Sudarshan Arjun Giramkar

The US‐China trade war, after exchanges of several rounds of threats by both the countries has been finally declared open with both the countries imposing tariffs worth $34 billion on each other exports. Unites States imposed a tariff of 25% on more than 800 Chinese products (including steel, medicine devices & so on) and 10% on aluminum. This step is in congruence with the Trump's slogan of 'American First' in terms of Jobs & National Security along with the aim to correct trade deficit with China. U.S. have a trade deficit of $376 billion with China in 2017 with $505 billion imports & $130 billion of exports. The U.S. administration is relying fairly on Section 301 of the Trade Act of 1974 to prevent what it claims are unfair trade practices and theft of intellectual property. This gives the president the authority to unilaterally impose fines or other penalties on a trading partner if it is deemed to be unfairly harming U.S. business interests Trump had already, in August 2017, opened a formal investigation into attacks on the intellectual property of the U.S. and its allies, the theft of which cost the U.S. alone an estimated $225–600 billion a year.

To counter the situation, China immediately respondent by imposing tariffs on 545 US products like Soy bean, airplanes, items and automobiles, with the wish to cause job losses in American States.

Looking closer to the move, one can anticipate the U.S is targeting the industries related to China's Made in 2025 plan. The program is an outline for national economic development and dominance in the critical industries like cloud computing, artificial intelligence, robotics, 5G communications and the like. Domination in those industries is a step toward supplanting US leadership in key economic and technologies areas, and facilitates the spreading out of Chinese influence and power. Those are the real stakes as Washington and Beijing compete with each other.

Further, the other aspect of U.S‐china war is that it marks the beginning of a geopolitical competition between the two countries that is much more than a purely economic contest. The former interpretation is likely to prevail in most analysis, although the latter is a more accurate assessment of what is actually transpiring.

Falling talks between the world's largest & the second largest economies has set the rest of the countries to view the events with deep concern as this trade war will have an impact on the entire world.

WTO: Time to Revamp

There are clear signs that the current trading system represented by WTO is fast losing its grip. Countries like European Union (EU), United States (US) and China are demanding a new system by undermining the current one.

The powerful western countries have either by rule and by war if necessary have controlled the global trade in the past five centuries by. During 16th to 19th centuries, Britain in order to get raw material and push its exports due to the industrial revolution, colonized china, India, US, Australia and many other

Trade War: Time to Rethink & Redesign the Global Financial Architecture

Editorial

countries. The Great Depression era and World War II between 1930s and 1940s provide important reminders of globalization's last gloomy period of protectionism. The U.S. imposition of the Smoot‐Hawley tariffs and the international retaliatory response in the 1930s led to the almost stagnant international commerce. The level of tariffs during the Depression was much higher than what most developed economies impose today. At the conclusion of World War II, twenty‐three countries, led primarily by the United States, Canada, and the United Kingdom, negotiated the General Agreement on Tariffs and Trade.

To avoid a repeat of the mistakes of the recent past, including the Smoot‐Hawley tariffs and retaliatory responses and to ensure postwar stability GATT created in 1947 for the substantial reduction of tariffs and other trade barriers and to eliminate preferences for mutually beneficial relationship. Its success led to the formation WTO replacing GATT to accommodate new interests included services.

The US and EU committed to almost zero bound duty for most products believing in the theory that low import duties are essential for trade growth. While most developing countries can now increase import duties without violation WTO rules, the US and EU cannot as they are committed not to. So in the present circumstances they want to put the old obligations on back foot and push the WTO to form rules on the areas where they have competitive edge. So, most likely US and EU feels that the WTO in its existing form is of no use to them. So, one way of weaken the WTO is to violate its rules which is just what trump is doing.

India's Outlook

As far as India is concerned, protectionist rise in tariffs is clearly hit its exports to the US as well as China. In the case of the US, it has already been slightly impacted by the increased levies on steel and aluminum exports as it supplies only two per cent of that country's requirements. But in case the tariff war expands, it could be affected in a much larger way. At present, India is trying to gain from the prospect of soya bean exports being scaled down from the US by offering to supply this commodity to China. But such advantages can only be in the short run. In the medium and long term, higher tariffs will definitely mean a setback to the efforts to increase exports.

It would thus be in India's best interests to join hands with other stakeholders like the European Union as well as other Asian countries to deal with the situation. China will be willing to join hands with India as, Beijing will not find it advantageous to have strategic adversaries from both‐ India and U.S. India is bound to be the fifth largest economy and happens to be the fastest growing economy. India should also see it as an opportunity to correct its trade deficit with china which is at present $ 51.08 billion.

For the time being, India may not be affected by the turmoil in the global economy. But it cannot remain unscathed in case the current strains between the US and China blow up into a full blown trade war. For the time being, however, it needs to directly watch the state of affairs and ensure that India's economic interests are not compromised in any manner at all.

Volume : 6 | Issue : 1 | January to June 2018 | ISSN 2319‐1740 1

ABSTRACT

There is an increasing demand for Big Data and Analytics in the business environment and HR as a function is also catching

up with the investments in HR Analytics. Interestingly several of its applications are possible which has potential to enhance

HR decision making and functioning. The purpose of this research paper is to understand the utility of Workforce Planning

as an important HR function which credits the use of HR Analytics. To understand the use and adoption of HR Analytics in

various HR functions this research has used a questionnaire with Likert Scale to get the respondents views across various

parameters. The questionnaire was presented in both on-line and physical form to get desired number of respondents. Some

of the findings showed that if the Application level on HR Analytics increases the Representation levels in HR functions

also increases.Also organizations with fewer employee population has shown better experience of HR Analytics with

respect to its use in various HR Functions.

Keywords : HR Analytics, Workforce Planning, Application, Adoption

INTRODUCTION

The last decade and half there has been momentum on use of

Analytics in general and good amount of work

internationally has been done on HR Analytics.

Organizations of repute have established HR Analytics teams

which are churning the data and continuously releasing

analyzed report with greater insights. This means there is an

intent to deviate from traditional dashboard reporting and

analysis.

There is abundance of literature on HR Analytics which

spans from a mere understanding or awareness level to the

use of Analytics to prescriptive stage. Business impact was

clearly pursued by many researchers and there is enough

literature on the validity of this with the use and adoption of

HR Analytics. The models suggested by some of the active

researchers and practitioners has been phenomenal and

bound to drive the desired business results.

Various HR Functions does consume the services of HR

Analytics and there is a good literature on it. Of course it is

imperative to equip the team with the requisite knowledge

and skills of driving an HR Analytics agenda though. It is also

observed through these literature that the method to reach

these business goals is through incremental change, control

and enablement of the HR processes which collectively yield

the results with adequate decision making.

There is a strong sentiment with the presentation of the data

thus collected which also plays a significant role in the

success of HR Analytics program in the organization. Data

visualization and storytelling techniques were found to have

a good level of acceptance and several literature data points

suggested the same.

LITERATURE REVIEW

The workforce capacity planning is about developing human

resource with necessary skills to deliver effective services in

the future. Unless an organization can develop and well

manage skilled people it will find it difficult to keep pace

with the increasing demands for high performance,

competitiveness and efficiency.

A STUDY OF APPLICATION HR ANALYTICS AND ITS EFFECTON HR WORKFORCE PLANNING

MVS MurthyResearch Scholar

Pacific Academy of Higher Education and Research University, Udaipur

Dr. Uttamkumar M. KinangeProfessor

Kousali Institute of Management Studies, Karnatak University, Dharwad

Volume : 6 | Issue : 1 | January to June 2018 | ISSN 2319‐17402

Generally, there are two tasks which are essential for the

human resource management:

One thing that is abundantly clear in reviewing the methods,

practices, and procedures of numerous jurisdictions is that

there is an enormous amount of sharing and cross-pollination

that has taken place. The formulation of methods, practices

and procedures seems to have been enriched greatly through

benchmarking at least some of the workforce planning

practices of other organizations or using templates and tools

of different approaches.

The basic workforce planning model begins with supply

analysis focusing on "identifying organizational

competencies, analysing staff demographics, and identifying

employment trends." The competency analysis part of this is

said to provide baseline data on the existing organization and

present staff. The trend analysis part of this is describing and

forecasting models for how turnover will affect the

organization if no action is taken.

Further, trend analysis is said to directly inform the solution

analysis. Demand analysis measures future activities and

workloads plus describes what competencies the workforce

of the future will need. Said another way, demand analysis

tries to quantify the impact that the changing work will cause

whether stemming from technological changes or other

sources. Gap analysis compares the supply and demand

analysis to understand the differences between the "now" and

the future. "Gap analysis identifies situations in which the

number of personnel or competencies in the current

workforce will not meet future needs (demand exceeds

supply) and situations in which current workforce personnel

or competencies exceed the needs of the future (supply

exceeds demand)." Solutions analysis is developing the

strategies to close the gaps in competencies and to curtail

surplus competencies.

Significance of HR analytics in Strategic Workforce

Planning:

Workforce analytics has become a vital part of strategic

planning in the HR department. HR managers today, make

the decisions regarding their workforce based on the analysis

of HR analytics. Every decision relating to human resources

needs to be taken seriously. Hence HR analytics aids the HR

manager to have a look at different perspectives and

considering every aspect of human resources various

strategic decisions are made. Hence HR analytics plays a

critical role in strategic planning in the following ways:

It helps to understand what is going on inside the

organization

It aids in framing what action should be taken

It helps to track whether the implemented solution works

or not.

A variety of organizations have workforce-planning models

that they have started to use or will soon start to use to address

their "perfect storm," The models (or variations on the same

model) are too numerous to mention. There is a good deal of

eclecticism.

That said, it is hopefully no insult to the work being done in

this area to describe the models as being dependent upon four

essential steps conducted under color of what is known about

the strategic direction of the organization. In abbreviated

form, these workforce-planning steps consist of;

IDENTIFYCurrent and Future SkillsHuman capital required to meet businessneeds

Proper workforce capacity planbased on present Human capitalFuture requirements

Determine

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

15%15%15%

32%32%32%

15%15%15%

18%18%18% 20%20%20%

Which solution does your organizationuse for workforce plainning? (Check allthat apply)

Dissatisfied

How satisfied are you with how your organizationis using workforce planning today?

Satisfied

Sepreadsheets

Planning from HRApplication

Custom WFPSolution

Finance Budgetingand Plainning

Dedicated WFPSolution

WHAT ARE PEOPLE USING?‐ WORKFORCE PLAINNING

Supply Analysis

Demand Analysis

Gap Analysis

Solution Analysis

Many organizations have

adopted the slogan that

workforce planning is getting

the right people in the right

job at the right time and right


It also helps to track the measure of the impact of business

improvement initiative.

HR analytics helps to predict certain outcome which

might happen, foreseeing which a strategic plan to tackle

the problem can be calculated.

Its purpose is to accurately track the problems in the

business and formulate the strategic solution and track if

the implementation is successful.

With the help of HR analytics, HR leaders can clearly

identify and communicate precisely where the company's

investment in human capital is paying off.

Helps in forward looking workforce planning by

anticipating the future demand and supply of talents both

locally and globally.

Workforce planning involves two types of forecasts:

The first is internal, what our workforce will look like in the

future if we do nothing new: how many incumbents will we

have with relevant competencies in each area in the future?

The growing rate of attrition has complicated this forecast

because attrition is driven by factors largely outside the

control of the organization, mainly poaching by competitors.

The other complication is that job requirements are broader

now, and teamwork and other systems have made employees

more interchangeable, offering a great many more options

for meeting the demands of the organization.

The advantage of modern computing power with a model

like this is that estimates are generated instantly, which

allows one to vary the assumptions to see what happens.

Playing around with the assumptions basically turns a

forecasting model into a simulation: What happens to our

forecasted headcount, e.g., if the economy slides below our

assumption or if new competitors enter a market? The ability

to simulate allows business leaders to see the implications of

different strategies for talent, to anticipate how talent

constraints could impact those strategies, and in some case,

to adjust their business plans if the talent requirements are too

extreme.

Christina Morfeld (2002), in a recent HR.com article,

summarizes the aforementioned approach to workforce

planning as consisting of the following activities to be

performed by an organization:

OBJECTIVES

To examine the application of HR analytics in

organizations

To determine the factors influencing the application of

HR analytics in organizations

HYPOTHESES

H1o: There is no association between application of HR

Analytics and managerial levels.


Analytics and industry types

RESEARCH METHODOLOGY

The purpose of the research work is to examine the use of HR

Analytics to drive decision making resulting in business

impact. This study further aims to assess the relationship

between the various constructs in terms of implementation

and outcomes derived. Effect of demographic factors on the

analytics practice is assessed as well. Hence, this type of

research is descriptive and empirical in nature.

ANALYSIS

Following are the tests conducted to achieve the above said

objectives.

T test is used to examine the difference of means to check if

there is any difference in application of HR analytics among

various types of organizations.


Analytics and managerial levels.

Table 1.Application of HR Analytics difference between the

Services industry and Manufacturing industry

Gaining a thorough understanding of

your current workforce

Envisioning the operating environment that

will most likely exist in the future,

Identifying the competencies that will move the firmforward to overcome challenges, seize opportunities,and thrive in what will undoubtedly be a new world ofwork and

Developing strategies and implementing tacticsfor building this workforce.


There was no significant difference in the scores for

Application of HR Analytics among the Service Industry

(M=4.07, SD = 0.567) and Manufacturing Industry (M =

4.20, SD = 0.575) conditions; t(91) = -0.865, p = 0.389.

These results suggest, there was no difference in the opinion

on the use of Application of HR Analytics amongst the

population distribution between the Service Industry and the

Manufacturing Industry. Indeed a strong relationship to

determine that application of HR Analytics across HR

function areas are equally perceived to be beneficial by both

the groups.

Application of HR Analytics difference between the

Categories of employee population


Analytics and industry types

A one-way between subjects ANOVA was conducted to

compare the effect of employee population or size of

company on Application of HR Analytics. The test was

conducted to check if there is any change in ability of

Application of inputs from HR Analytics among respondents

from different organisations who are varying in employee

populations.

There was no significant effect of Employee Population on

Awareness at the p< 0.05 level for the three conditions [F (1,

91) = 0.003, p = 0.959].

It can be interpreted from the description table that the

respondents who had an employee population of less than

2000 (M = 4.13, SD = 0.550) had higher Application levels

with respect to the other groups. Though there was very little

difference among the rest of the groups, the confidence level

slightly reduced as the employee population went up

especially between 2001-5000 (M = 4.05, SD = 0.630) it was

least. It was seen that the groups with lower employee

population has better Application levels with respect to their

experience in various HR Functions utility of HR Analytics.

FINDINGS

It can be interpreted that if the Technology use and

adoption level on HR Analytics increases the Application

levels in HR functions also increases.

It can be interpreted that if the Application level on HR

Analytics increases the Representation levels in HR

functions also increases.

It was seen that the groups with lower employee

population has better Application levels with respect to

their experience in various HR Functions utility of HR

Analytics.

SUGGESTIONS

There is already enough evidence suggesting the adoption

and implementation of HR Analytics in organizations.

Through this study and presentation it is recommended that

organizations should therefore quickly create a business case

for initiating the analytics journey with clear goals in mind.

MANAGERIAL IMPLICATIONS

The study on HR Analytics and its use in help arrive at

decision making thereby impact business outcomes, has

demonstrated benefits through from adoption, penetration to

implementation. However given its nascent stage of adoption

or use among the HR professionals this study highlights the

beneficiaries of HR Analytics within the HR Functions, this

demonstrates the utility beyond the theoretical boundaries.

Table 1

Organizationtype

N Mean Std.

Deviation

ApplicationServicesindustry

74 4.07 .567

Manufacturingindustry

19 4.20 .575

Table 2

N Mean Std. Std. Deviation Error

Less than 2000 39 4.13 .550 .088

2001 to 5000 33 4.05 .630 .110

Above 5000 21 4.11 .516 .113

Total 93 4.10 .567 .059

Table 3

ANOVA

Application

Sum of

Squaresdf

MeanSquare F Sig.

BetweenGroups .001 1 .001 .003 .959

WithinGroups 29.628 91 .326

Total 29.629 92


CONCLUSION

Human Capital Analytics and WFP are rapidly becoming

core competencies that organizations cannot do without.

Only 38 percent of organizations report they have the in-

house skills required to successfully execute WFP, according

to i4cp's 2011 WFP survey. Learning can take the initiative to

develop Human Capital Analytics and WFP curriculums

customized to their organization's specific needs and culture.

To improve its return on investment in talent management, an

organization needs to fully understand its workforce

demographics, costs and issues while continuously

analyzing such issues based on future business needs and

objectives. Such an analysis can help the organization

identify gaps in talent needed for crucial positions and

determine the types and numbers of people needed in the

workforce and when they will be needed. Research shows

that leading organizations integrate workforce analytics and

planning with overall strategic planning and review their

projections at least twice annually.

REFERENCES

Anderson, M. W., (2004), The Metrics of Workforce

Planning, Public Personnel Management, Vol 33, Issue 4,

pp. 363 - 378

Amy Armitage, & Amit Mohindra. (2012, March 1). Care

About Workforce Planning. Retrieved December 25,

2017, from http://www.clomedia.com/2012/03/01/care-

about-workforce-planning/

International Personnel Management Association. (2002)

Workforce Planning Resource Guide for Public Sector

Human Resource Professionals. Available from IPMA-

HR. http://www.ipma-hr.org (http://www.ipma-hr.org/)

Leisy, B and Pyron D., (2009), Talent Management Takes

On New Urgency, Compensation & Benefits Review, Vol

41, Issue 4, pp. 58 – 63, https:// doi.org/ 10.1177/

0886368709334323

Momin W. Y. M., and Mishra K., (2015), HR Analytics

and Strategic Workforce Planning, International Journal

of Applied Research, Volume 1, Issue 04, Pages 258-260

Morfeld, Christina (2002) Workforce Planning: The

Strategy Behind Strategic Staffing. HR.COM

PETER CAPPELLI (2009),A Supply Chain Approach to

Workforce Planning, Organizational Dynamics, Vol. 38

Issue 1, pp. 8–15,

US Department of Health and Human Services. Building

Successful Organizations: Workforce Planning in HHS

(1999). Office of Human Resources, Assistant Secretary

f o r M a n a g e m e n t a n d B u d g e t ,

http://www.hhs.gov/ohr/workforce/wfpguide.htm

(http://www.hhs.gov/ohr/workforce/wfpguide.htm).


ABSTRACT

Goods and Service Tax law in India is a Comprehensive multi-stage, destination based tax that is levied on every value

addition. In other words, Goods and Service Tax is an indirect tax levied on the supply of goods and services. GST law has

subsumed many indirect tax laws that previously Goods and Service Tax law in India. Under this regime, the tax will be

levied at every point of sale. In the pre GST regime, tax on tax was calculated and paid by every purchaser including the final

consumer. GST avoids these cascading effects as the tax was calculated only on the Value added at each stage of transfer of

ownership. The Goods and Service Tax has a reason to give numerous opportunities to the financial care takers of

companies and organizations who rely on Chartered Accountant for all their statistical and accounting data maintenance.

We are developing countries where a large number of startups and small companies are working independent. After the GST

implementation these companies has started working according to the new taxation system. So the awareness about the new

tax system and proper training on GST laws is required For CA's. The objective of this paper is to study the awareness and

perception of GST by the Chartered Accountants from Udaipur district. The research is based on primary data collected

from various CA's practicing as financial consultants for small business and small scale industries by preparing a

questionnaire and the data is also collected from the published articles and research engines. The research studies the

perception of the Chartered Accountant towards their clients that how much they understand the current tax system. The

research will help the CA'S to analyze the various perception and training required for the CA's to implement the GST law

on various medium and small scale business.

Keywords : Multi-stage, Subsumed, Perception, Startups

INTRODUCTION

Tax policies play an important role on the economy. The main

source of revenue for government in India is from tax. Direct

and Indirect taxes are the two main sources of tax

revenue.When the impact and incidence falls on same person

it is called Direct Tax, when the impact and incidence falls

on different person, that is when the burden can be shifted to

others person it is called indirect tax. The indirect tax system

which was in multilayered taxes levied by the central and

state governments at different stages of the supply chain such

as excise duty, octroi, central sales tax and value added tax,

among others .First Indirect tax reform occurred in India

when the modified value added tax (MODVAT) was

introduced for selected commodities in 1986 to replace

Central Excise Duty .The other reforms are the introduction

of service tax in 1994,decision to introduce VAT in 1999,

introduction of Constitution Amendment Bill on GST in

2011. The one hundred and first Amendment of the

Constitution of India, officially known as the Constitution

(one hundred & first Amendment) Act, 2016 introduced a

national goods &service tax in India from 1st April

2017.Goods and Service Tax (GST) is most ambitious and

biggest tax reform plan, which aims to stitch together a

common market by dismantling fiscal barriers between

states .It is a single national uniform tax levied across India

on all goods and services. In GST, all the indirect taxes except

custom duty will be subsumed under a single regime. The

GST taxation laws will put an end to multiple taxes which are

levied on different products, starting from the source of

Dr. Ravneet KaurAssistant Proffessor, Bhupal Nobel’s, University, Udaipur

Dr. Rimpi SalujaVisiting Faculty, Department of Accountancy & Business Statistics UCCMS MLSU, Udaipur

Dr. Ritu SoniTeaching Cousultant Department of Accuntancy & Business Statistics, UCCMS, MLSU, Udaipur

AWARENESS AND PERCEPTION OF GOODS AND SERVICE TAX (GST) BY CHARTERED ACCOUNTANT: AN ANALYTICAL STUDY

manufacturing to reaching the end consumer.GST works on

the fundamental principle of 'One Country One Tax'. The tax

compliance is going to be easy as all the laws are subsumed

and only one GST law to be implemented. The four GST

slabs have been set at 5%, 12%, 18% and 28% for different

goods or services. GST is to be levied at final destination of

consumption and not at various points. This brings

transparency and corruption free tax administration.

REVIEW OF LITERATURE

Chouhan, Shakdwipee, & Khan (2017) identified the

awareness about GST among 148 small business owners of

Rajasthan state. They analyzed that customer refused to pay

GST & submit the report. They suggested that more training

for GST should be provided & software's should be easily

available & GST will improve the revenue growth to the state

& country.

Kalyani (2017) examined the impact of GST & its benefits &

opportunities on different sectors and industries. She

revealed that introduction of GST is likely to improve the tax

collections; efficient formulation of GST will lead to

resource and revenue gain for both Centre and States majorly

through widening of tax base and improvement in tax

compliance. It can be further concluded that GST have a

positive impact on various sectors and industry. Although

implementation of GST requires concentrated efforts of all

stake holders namely, Central and State Government, trade

and industry.

Muthupandi & Dr. Xavier (2017) examined the awareness

of implementation of GST among100 college Students. They

suggested that Providing them adequate and relevant

fundamental information to better understand the general

principle of GST by organizing seminar, talk, training, course

and forum in order to increase awareness and knowledge and

also conform to regulation. They also discussed various

challenges in way of GST implementation.

Noormahayu & Ashimah (2015) examined public

awareness towards Goods and Services Tax (GST) in Kuala

Lumpur. In this study, several variables were selected

concerning tax knowledge, tax morale and tax compliance.

Multiple regression analysis was used to test the cause of

relationship among tax knowledge, tax morale, and tax

compliance with taxpayer's awareness on GST. The results

revealed that all of three independent variables were found to

have significant impact toward the publics' awareness on

GST.

Garg (2014) focused on the impact of GST (Goods and

Services tax) with a brief description of the historical

scenario of Indian taxation and its tax structure and the

researcher discussed the possible challenges, threats and

opportunities that GST brings to strengthen our free market

economy.

Raymond (2007) surveyed on the Goods and Services Tax

with which the Hong Kong Special Administrative Region

Government proposes to broaden the tax base. It shows the

opinions of 310 accountants on the tax and also investigates

the different views of practicing, non-practicing and

retired/unemployed accountants as well as those who have

lived and who have never lived in a country with GST or the

like. The result shows that 62.8% of the responding

accountants object to GST and suggest other measures to

broaden the tax base if the economy requires it.

R. N. & Dr. Rajani (2007) examined the role of GST in

India and analyzed the public opinion about awareness on

GST implementation with a sample size of 150, by using

convenient sampling technique. The study revealed that

Goods and Services Tax will improve the collection of taxes

as well as boost the development of Indian economy by

removing the indirect tax barriers between states and

integrating the country through a uniform tax rate.

CHALLENGES IN THE

IMPLEMENTATION OF GST

The government of India implemented the GST Bill by April

Table: 1 Nature of GST in India

DUAL GST

Interstate TransactionsTransactions within the state

SGST CGST IGST

Levied by state Levied by Centre Levied by Centre

Implemented

through Multiple

Statues

Implemented

through Single

Statue

Implemented through

Single Statue

Paid to the

account of

State Govt.

Paid to the

account of

Central Govt.

Paid up to the

account of Central

Govt.

IGST=CGST+SGST

Addl.Levy@1%on

goods for a period of

2 years

Source: Goods and Service Tax (GST)

in India-Challenges Ahead


2016, but there are certain bottlenecks which need to be taken

care of-

What are the preparations done by the central and state

government before implementing the GST?

Whether the government machinery is efficient enough

for such an enormous change.

Whether the tax payer is ready for such a change?

What will be the impact on the government's revenue?

How will the manufactures, traders and ultimate

consumers be affected?

Will GST help the small enterers and small traders?

Whether the IT network & infrastructure ready to make

the implementation seamless.

Whether the professionals (CA's) have been aware of the

implementation of GST regime.

Whether the sufficient awareness programmes have been

organized to implement the GST law.

Whether the tax payer have proper awareness of the

process of filling returns.

Whether the professionals have been complete

knowledge of accounting related changes.

What will be the price impact on the marketing

department?

Whether the fiscal administration have verified the

changes & filling required.

Thus there is going to be a need for training at many

levels, which is from operations to decision makers in

different domains. Everyone from individual service

providers, small, medium and large firms have to adopt GST

from the second quarter of the financial year 2017-18. Thus

shows need for training millions of professionals. Unless

different stakeholders rise up to the need for delivering the

same, the transaction could be difficult.

OBJECTIVES OF THE STUDY

1. To study the chartered Accountant's Awareness about

GST.

2. To study the chartered Accountant's Perception about

GST.

HYPOTHESIS OF THE STUDY

H01 Chartered Accountant's Perception about GST does not

differ significantly with respect to their experience.


Research methodology is divided into following parts:

Nature of Study Descriptive

Nature of Data Primary Data

Survey Tool C l o s e d E n d e d S t r u c t u r e d

Questionnaire

Measurement scale Likert 5 Point Scale [(1) strongly

ag ree (2 ) Agree (3 ) neu t r a l

(4) Disagree (5) Strongly Disagree]

Survey Area Udaipur, Rajasthan, India

Respondents Chartered Accountants

Method of Sampling Non-probabil i ty convenience

sampling technique

Data Collected The data was collected from CAS'.

Initially 75 questionnaires were sent

to the employees of different sectors

and finally 63 responses were

received.

ANALYSIS & INTERPRETATIONS

1. Demographic Profile of Respondents

Descriptive statistics are illustrated in Table 2, which

indicates demographic wise distribution of respondents.

53.97% respondents were male & rest (N=29,

Percentage=46.03) were female. Majority number of

customers belongs to the age group of 25 to 30 years

(N=40, Percentage=63.49) followed by 30 to 35 years

(N=11, Percentage=17.46). Out of the total chartered

accountants majori ty of respondents (N=21,

Percentage=33.33) were having work experience of

more than 5 years and 12.70% respondents (N=8) were

having work experience of 3 to 5 years. Equal number of

respondents (N=17, Percentage=26.98) were having

work experience of 1 to 3 years or less than 1 year.

Gender N Percentage

Male 34 53.97

Female 29 46.03

Total 63 100

Age (In Years) N Percentage

25 to 30 40 63.49

30 to 35 11 17.46

35 to 40 7 11.11

40 & above 5 7.94

Total 63 100.00

Table 2: Demographic prole of respondents


4. Respondents' opinion about Impact of GST on

Workload

According to 93.65% respondents (N=59) GST has

increased their workload while rest of the respondents (N=4,

Percentage=6.35) said that GST does not has any impact on

CAs workload.

Table 5: Respondents' opinion about Impact of GST on

Workload

GST will Increase Revenue N Percentage

Yes 61 96.83

No 2 3.17

Total 63 100

Time Needed N Percentage

0 to 1 Year 38 62.30

1 to 3 Years 12 19.67

3 to 5 Years 11 18.03

More than 5 Years 0 0.00

Total 61 100

GST will Increase Workload N Percentage

Yes 59 93.65

No 4 6.35

Total 63 100

3. Respondents' opinion about Impact of GST on Revenue

Respondents were asked that Do you think GST will increase

revenue for the country and as a response majority of

respondents (N=61, Percentage=96.83) opinioned that GST

will increase the revenue of the country. Further these

respondents were asked that how much time it will take and

a s a r e s u l t m a x i m u m n u m b e r o f C A s ( N = 3 8 ,

Percentage=62.30) said that it will take less than a year.

19.67% respondents (N=12) said that GST will increase

country's revenue in 1 to 3 years and 18.03% respondents

(N=11) said that it will take 3 to 5 years.

2. Respondents' Opinion about Workshop on GST :

Respondents were asked that have you ever attended

any workshop on GST and as a response majority of

respondents (N=42, Percentage=66.67) said that they

have attended the GST workshop. Out of those

respondents (N=42) who have attended GST workshops

78.57% respondents (N=33) found the workshop

helpful in better understanding of GST. There were

93.65% respondents (N=59) who indicated that

Government needs to conduct more workshop /seminar

on GST for Chartered Accountants.

Table 3: Respondents' Opinion about Workshop on GST

Attended Workshop on GST N Percentage

Yes 42 66.67

No 21 33.33

Total 63 100

Workshop was Helpful N Percentage

Yes 33 78.57

No 9 21.43

Total 42 100

Need of More Workshops N Percentage

Yes 59 93.65

No 4 6.35

Total 63 100

5. Chartered Accountants' Perception about GST

To identify the respondents' perception about GST they were

asked to indicate their level of agreement towards various

statements on the 5 point scale ranging from strongly agree

(5) to strongly disagree (1). Final result is obtained with the

help of mean.

In addition following criteria is used for analysis part:

The score among 1.00-1.80 means Strongly Disagree

The score among 1.81-2.60 means Disagree

The score among 2.61-3.40 means Neutral

The score among 3.41-4.20 means Agree

The score among 4.21-5.00 means Strongly Agree

Table 4: Respondents' opinion about Impact of GST on

Revenue

GST will Increase Revenue N Percentage

Yes 61 96.83

Experience N Percentage

less than 1 year 17 26.98

1 to 3 Years 17 26.98

3 to 5 Years 8 12.70

More than 5 Years 21 33.33

Total 63 100.00


The final scores for various factors are presented in table 6

According to the chartered accountants GST will make Tax

system more efficient, comprehensive & transparent (Mean

Score=4.22), GST will prove more support to trade &

industry (Mean Score=3.60), GST will check tax evasion

(Mean Score=3.76), GST will be improvement over value

added tax system (Mean Score=4.14), GST will tax reform

take our country in pace of leading economies of world

(Mean Score=4.17), GST is the best tax system (Mean

Score=3.7) but Small companies were not prepared for GST

(Mean Score=2.38). Respondents have projected no clear

opinion with the statements that clients understand GST

structure (Mean Score=3.27), GST will be a burden on

people (Mean Score=2.97), GST will increase Inflation

(Mean Score=3.37) and GST will improve refund procedure

& helps in improving accounting procedures (Mean

Score=3.29). It can be inferred that CAs has perceived

positive aspects of GST but at the same time they are also not

sure with some of the declared benefits of GST.

6. Hypothesis Testing

H Chartered Accountant's Perception about GST does not 01

differ significantly with respect to their experience.

H Chartered Accountant's Perception about GST differs 11

significantly with respect to their experience.

To measure the difference in Chartered Accountant's

Perception about GST with respect to their experience

ANOVA is applied as shown in table 7.

Table 7: ANOVA test results to measure difference in

Chartered Accountant's Perception about GST with

respect to their experience.

GST will improve refund

p rocedure & he lps in

improving account ing

procedures

3.29 Neutral

GST will be improvement

over value added tax system

4.14 Agree9

GST is the best tax system 3.7 Agree11

GST will tax reform take

our country in pace of

leading economies of world

4.17 Agree10

8

GST wi l l p rove more

support to trade & industry

3.6 Agree6

GST will check tax evasion 3.76 Agree7

Source of Variation

Between Samples

Sum of

Squares

5.338

Degree of

Freedom

3

Mean Sum

of Squares

1.779

F-Ratio Result

Within Samples

Within Samples

43.074

43.074

59

59

0.730

0.730

2.44Not

SignicantStatement 1

Source of Variation

Between Samples

Sum of

Squares

3.526

Degree of

Freedom

3

Mean Sum

of Squares

1.175

F-Ratio Result

Within Samples

Total

35.332

38.857

59

62

0.599 2.44Not


GST will make Tax system

more efficient, compre-

hensive & transparent

4.22 Strongly

Agree

5

Table 6: Chartered Accountants' Perception about GST

S. No. Statement Mean

Score

Level of

Agreement

Your clients understand

GST structure

3.27 Neutral1

S m a l l c o m p a n i e s a r e

prepared for GST

2.38 Disagree2

GST will be a burden on

people

2.97 Neutral3

GST will increase Inflation 3.37 Neutral4


Source of Variation

Between Samples

Sum of

Squares

3.356

Degree of

Freedom

3

Mean Sum

of Squares

1.119

F-Ratio Result

Within Samples

Total

88.581

91.937

59

62

1.501 .75Not


Source of Variation

Between Samples

Sum of

Squares

4.435

Degree of

Freedom

3

Mean Sum

of Squares

1.478

F-Ratio Result

Within Samples

Total

62.168

66.603

59

62

1.054 1.40Not


Source of Variation

Between Samples

Sum of

Squares

3.44

Degree of

Freedom

3

Mean Sum

of Squares

1.147

F-Ratio Result

Within Samples

Total

33.449

36.889

59

62

0.567 1.40Not


Source of Variation

Between Samples

Sum of

Squares

6.235

Degree of

Freedom

3

Mean Sum

of Squares

2.078

F-Ratio Result

Within Samples

Total

44.845

51.079

59

62

0.760 1.40Not


Source of Variation

Between Samples

Sum of

Squares

8.671

Degree of

Freedom

3

Mean Sum

of Squares

2.890

F-Ratio Result

Within Samples

Total

56.757

65.429

59

62

0.962 1.40Not


Source of Variation

Between Samples

Sum of

Squares

10.695

Degree of

Freedom

3

Mean Sum

of Squares

3.565

F-Ratio Result

Within Samples

Total

96.162

106.857

59

62

1.630 2.19Not



Source of Variation

Between Samples

Sum of

Squares

1.794

Degree of

Freedom

3

Mean Sum

of Squares

0.598

F-Ratio Result

Within Samples

Total

27.92

29.714

59

62

0.473 1.26Not


Source of Variation

Between Samples

Sum of

Squares

1.899

Degree of

Freedom

3

Mean Sum

of Squares

0.633

F-Ratio Result

Within Samples

Total

31.18

33.079

59

62

0.528 1.40Not


Source of Variation

Between Samples

Sum of

Squares

1.686

Degree of

Freedom

3

Mean Sum

of Squares

0.562

F-Ratio Result

Within Samples

Total

65.584

67.27

59

62

1.112 0.51Not


Level of Signicance = 5%, Tabulated Value = 2.76

At 5% level of signicance majority of F-statistic values are

not signicant which provides enough evidence not to reject

the null Hypothesis. So it can be inferred that Chartered

Accountant's Perception about GST does not differ

signicantly with respect to their experience.

CONCLUSION

The main workload of the implementation of GST has been

on the professionals as they have to deal directly with the tax

payer, i.e. small businessman, middle man, manufactures etc.

Many training programmes & workshops have been

organized by the government for the awareness of the

implementation of GST law. Still the professionals need

more training as they are facing the practical problems for

implementation of GST law. In the present study following

are the main ndings.

96.83% of the respondents were of the view that GST will

increase the revenue of country within a year.

93.65% of respondents found that GST has increased

their workload.

GST will make tax system more efcient, comprehensive

and transparent.

It was future analyzed by applying ANNOVA to test the

perception of CA's about GST with respect to their

experience & it was found that Chartered Accountants

perception about GST doesn't differ signicantly with

respect to experience. Providing adequate and relevant

fundamental information is necessary to make them better

understand the general principal of GST by organizing

seminar, talk, training course and knowledge & also

conrm to regulation.

REFERENCES

(N.D.). Retrieved from www.wikipedia.com.

Anbuthambi, B., & Chandrasekaran, N. (2017). Goods

And Services Tax(GST) And Training For Its

Implementation In India:A Perspective. ICTACT Journal

on Management Studies , 3 (2), 511-514.

Chouhan, V., Shakdwipee, P., & Khan, S. (2017).

Measuring Awareness about Implementation of GST:A

Survey of Small Business Owners of Rajasthan. Pacic

Business Review International , 9 (8), 116-125.

Garg, G. (2014). Basic Concepts and Features of Good

and Service Tax in India. International Journal of

Scientic Research and Management , 2 (2), 542-549.


Kalyani, S. R. (2017). Study on Impact of GST in India.

Multidisciplinary National Research Journal , 7 (2), 35-

38.

Lourdunathan, F., & Xavier, P. (2017). A Study on

implementation of Goods And Service Tax (GST) in

India:Propectus and Challenges. International Journal Of

Applied Research , 3 (1), 626-629.

Muthupandi, S., & Xavier, D. (2017). Awareness of

Implementation of Goods And Services Tax (GST)

Among College Students' in Sivakasi. IJESC , 7 (4),

11065-11070.

Nasir, N. B., Sani, A. B., Mohtar, N. M., & Zainurdin, Z.

K. (2015). Public Awareness Towards Goods And

Services Tax (GST) in Kualalumpur(Malaysia). ARJ

International Academic Research Journal of Social

Science , 1 (2), 101-106.

Vivekanandar, R. N., & Dr.Rajni, P. (2017). Public

Opinion Towards Awareness on GST Implementation in

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Yeung, R. C. (2007). A Survey of Views of Accountants

on Goods and Service TAx.



ABSTRACT

Students today are the backbone of a urban growth because of the high proliferation of higher studies in any society. They

form the biggest spenders of money and highest percentage going towards apparels that make them appear to be a part of a

certain level. This study tries to study the involvement of students when purchasing apparels and in this effort was

successful in highlight the factors of high involvement which got minimized as soon as a brand came into consideration for

the purchase of product leading to negation of price sensitivity. The other factors being negative consumerism, erodic in

terms of being of the same mind even though influencing factors are prevalent, unregulated, unobstructed, self-involved

and value conscious.

Keywords: Purchase Involvement, Price Insensitivity, Consumerism

INTRODUCTION

India is a country that is seeing an increased penetration of

organized retail supported by the changing demographics of

increasing income and education drive textile demand. As

per the data released by the textile Ministry of India, in 2016-

17 the textiles industry contributed 10 per cent to the

manufacturing production of India and 2 per cent to the GDP.

Huge investments are being made by Government under

Scheme for Integrated Textile Parks (SITP)-(US$ 184.98

million) and Technology Upgradation Fund Scheme

(TUFS)-(US$ 259.79 million released by Ministry of

Textiles in FY17) to encourage more private equity and to

train workforce.

According to a World Bank report of 2016, urban population

accounts for 32.7 per cent of the total population of India.

This also works as demand driver due to changing taste and

preferences in the urban part of India. It has been

complemented by a young population which is growing and

at the same time is exposed to changing tastes and fashion.

Complementing this factor is rising female workforce

participation in the country.Rising incomes has been a key

determinant of domestic demand for the sector; with incomes

rising in the rural economy as well, the upward push on

demand from the income side is set to continue. Rising

industrial activity would support the growth in the per capita

income.

These favorable factors has lead the Indian domestic textile

industry in India to grow to US$ 150 billion in July 2017 and

it is further projected to reach US$ 250 billion by 2019. The

exports are not far behing with textile and apparel exports

from India is expected to increase to US$ 82 billion by 2021

from US$ 36.66 billion in FY17.

One of the biggest contributors to the growth has been

teenagers. Their importance was understood as early as in

1998 by Schor where he highlighted that College students as

a young consumer group have become important consumers

in the market because of their growing purchasing power.

They have easy access to credit cards and income from part-

time jobs to spend thus gaining significant importance from

marketers.


Shailesh K. Kushal (2013): He attempt to examine the

A STUDY OF PURCHASE INVOLVEMENT OF STUDENT TOWARDS BRANDED APPARELS IN THE CITY OF INDORE

Dr. Satnaam Kaur UbejaAssistant Professor, Prestige Institute of Management and Research, Indore

Prof. Arpit LoyaAssistant Professor, Prestige Institute of Management and Research, Indore

Prof. Prayatna JainAssistant Professor, Prestige Institute of Management and Research, Indore

significant factors of teenagers' apparel purchase intentions

in Lucknow. Through this study, an attempt is made to find

out the effect of fashion apparels, in store promotions,

reference group, body cathexis and its influence on purchase

of apparel by teenagers. The results of this study indicate that

fashion is the most important attribute of apparel to teenagers

when making purchasing decisions, with designer brands

being the second most important attribute.

G. Hari Shankar Prasad (2014): The study was directed

towards studying the priority of the customer's availability of

latest designs, options, affordability, home delivery option,

ease of choosing payment option and availability of products

that cater to the needs of the family at one place. The research

highlighted that customers had a lower inclination towards

advertisements and low factor of trust The underlying factors

affecting apparel buying behavior of store customers are

shopping as social compliance and for discounts, cost

consciousness and value for money, shopping and

merchandise convenience, customers trust, availability of

choice and durability of and longevity aspects of apparel

quality

S. Tabrez, A. Lanja, H. hurrah (2014): In an effort to

examine the customer perception of youth towards branded

fashion apparels in Jhalandar city found that people wear

branded clothes to look attractive and to impress people.

Price of clothes was not a hindrance in purchase if the product

was from a brand. The perception to buy branded clothes

was that customer can derive more value for money as the

quality of the product is presumed to be good in comparison

to unbranded or non-branded clothes. Wearing the same type

of clothes makes people bored. They like to wear new and

fashionable clothes. They wear branded clothes because of

comfort and recognition that they give.

Jenni Romaniuk (2013) the results showed a positive

relationship, where those with a higher buying frequency and

a higher share of category requirements are more likely to

give brand associations. The findings also showed that share

of category requirements was a greater driver of brand

association responses than buying frequency. Consumer

behavior which was earlier termed as „overt behavior is a

continuous consumption process related to pre-purchase,

purchase and post purchase issues. This refers to the physical

action of consumers that can be directly observed and

measured by others

OBJECTIVE OF THE STUDY

The study was directed towards extracting the factors that

influence the customers leading to higher involvement of

students when purchasing clothes.


The Design

We have taken samples between 17yrs to 27 yrs of age. Our

respondents were college students of Indore.

The Sample

We have taken 150 samples to do my research work.

Tools for Data Collection

We have collected primary data from a self designed

questionnaire.

RESEARCH ANALYSIS

The data was analysed using

1) Kaiser- Meyer-Olkin test to check the adequacy of the

data.

2) Bartlett's test to check the homogeneity of variance.

3) Factor Extration using Eigen Value

4) Rotated Varimax to group the variable in the factors

5) Reliability Statistics to check the stability and

consistencies of the result.

RESEARCH RESULTS

Demographic Profile

The demographic statistics is provided in Table 1.

Respondents of this survey consist of 45 percent male and 54

percent female. Out of total respondents between the ages of

17-22 years old group and 22-27 years old group there is a

equal representation from the group in the survey. The

respondents' highest education levels were majority in Post

graduation (75 percent), followed by Graduation (24.7

percent).

RELIABILITY

Reliability test can be used as a measure that signals the

consistency and stability of the instrument used in the survey

when repeated measurements are made. A well known

approach of Cronbach's Alpha was used to measure the

consistency and stability of the instrument used in the survey.

The internal consistency of the extracted components was

measured, resulting in Cronbach's Alpha for the scale was

.848 and the factors were found to be are acceptable as they

were factor loading generated to greater than the

recommended value of 0.70 (Nunnally, 1988). The summary

is provided in Table 2.

EXPLORATORY FACTORIAL ANALYSIS

The value of Kaiser-Mayer-Olkin (KMO) was 0.804 which


was above the recommended value (0.5) which means that

the sample size is big enough to conduct factor analysis. The

statistical test for Bartlett test of sphericity was significant.

The factor extracted are listed below

Confirmatory Factor Analysis

The factors derived were then processed on the basis of

Confirmatory Analysis. No variables were dropped from any

of the factors that were extracted from the Exploratory Factor

Analysis. The model of the confirmatory analysis satisfies all

the parameters that are termed to be important for the

development of analysis vis-à-vis Goodness of Fit (GFI),

Average Goodness of Fit (AGFI), Root Mean Square Error of

Approximation (RMSEA).

CMIN/DF: 1.338; GFI: .849; AGFI: .809, RMSEA: .048;

PClose: .612, CFI: .95

CONCLUSION

Consumer involvement have always been of great interest to

marketers and researchers because of high involvement of

consumers related to financial, social and psychological risk

(Dholakia, 2001). The factors derived from our study also

suggest that when consumers purchase a product they are

highly involved but with slow influence of brands the

consumers start to dilute the impact of factors of Consumer

involvement.

REFERENCES

Arbuckle, J. L. (2011). IBM SPSS Amos 20.0 [computer

program]. New York: IBM.

D'Souza, C., Gilmore, A. J., Hartmann, P., Apaolaza

Ibáñez, V., & Sullivan Mort, G. (2015). Male

eco fashion: a market reality. International Journal of

Consumer Studies, 39(1), 35-42.

G. Hari Shankar Prasad, “Factors Influencing Buying

Behavior of a Selected Apparel Retailer's Customers”,

Symbiosis Centre for Management Studies, Pune Annual

Research Journal of Symbiosis Centre for Management

Studies, Pune Vol. 1, Januray 2013 – January 2014, pp.

41–55

Gurunathan, K. B., & Krishnakumar, M. (2013). Factors

influencing apparel buying behaviour in India: A

Measurement Model. Paripex-Indian journal of research,

2(3).

Kumar, A., Lee, H. J., & Kim, Y. K. (2009). Indian

consumers' purchase intention toward a United States

versus local brand. Journal of Business Research, 62(5),

521-527.

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit

indexes in covariance structure analysis: Conventional

criteria versus new alternatives. Structural equation

modeling: a multidisciplinary journal, 6(1), 1-55.

Romaniuk, J. (2013). Modeling mental market share.

Statement Factor Total Factor EigenNumber Loading Value

1 Price Insensitive 3.788 7.265

2 Negative 3.244 2.888 Consumerism

3 Ergodic 3.858 2.349

4 Unregulated 2.335 1.599

5 Unobstructed 2.124 1.234

6 Self-involved 1.677 1.137

7 Value Conscious 1.987 1.065

Measures Threshold Reference

CMIN/CF <3.0

GFI >.80

AGFI >.80 Arbuckle (2011).

RMSEA <.08

PCLOSE >.05

CFI >.95 Hu & Bentler (1999)


Journal of Business Research, 66(2), 188-195.

S. Tabrez, A. Lanja, H. hurrah, “Study The Customer

Perception Of Youth Towards Branded Fashion Apparels

In Jhalandar City”, Elk Asia Pacific Journal Of Marketing

And Retail Management ISSN 0976-7193 (Print) ISSN

2349-2317 (Online) Volume 5 Issue 2, April (2014)

Salma, Mark E. and Armen Tashchian(1985), “Selected

Socio-economic and demographic characteristic

associated with purchasing involvement”, journal of

Marketing, 49, 72-82

Shailesh Kumar Kaushal, “The importance of apparel

product attributes for teenaged buyers” ISSN: 0971-1023

NMIMS Management Review Volume XXIII April -

May 2013.

ANNEXURE

Frequency Percent Valid Cumulative Percent Percent

1 68 45.3 45.3 45.3

2 82 54.7 54.7 100.0

Total 150 100.0 100.0

Gender


1 75 50.0 50.0 50.0

2 75 50.0 50.0 100.0

Total 150 100.0 100.0

Age


1 37 24.7 24.7 24.7

2 113 75.3 75.3 100.0

Total 150 100.0 100.0

Education

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.804

2022.045

325

000

Bartlett's Test

of Sphericity

Chi-Square

df

Sig.

Total Variance Expla ined

Component

Initial Eigen values

Extraction Sums of

Squared Loadings

Rotation Sums of Squared

Loadings

Total

% of Variance

Cumulative %

Total

% of Varian

ce

Cumulative %

Total

% of Varian

ce

Cumulative %

1

7.27

27.94

27.94

7.27

27.94

27.94

3.47

13.35

13.35

2

2.89

11.11

39.05

2.89

11.11

39.05

3.36

12.92

26.27

3

2.35

9.03

48.08

2.35

9.03

48.08

3.20

12.30

38.57

4

1.60

6.15

54.24

1.60

6.15

54.24

2.28

8.76

47.33 5 1.23 4.75 58.98 1.23 4.75 58.98 2.06 7.91 55.24

6

1.14

4.37

63.35

1.14

4.37

63.35

1.76

6.77

62.00

7

1.07

4.10

67.45

1.07

4.10

67.45

1.42

5.45

67.45

8

0.92

3.53

70.98

9 0.85 3.25 74.23 10 0.81 3.10 77.33


15 0.51 1.96 88.97

11 0.71 2.71 80.04

12 0.65 2.49 82.54

13 0.63 2.41 84.95

14 0.54 2.06 87.01

16 0.47 1.81 90.78

17 0.41 1.56 92.34

18 0.39 1.49 93.83

19

0.37

1.42

95.24

20

0.27

1.05

96.30

21

0.22

0.86

97.15

22

0.20

0.77

97.92

23

0.18

0.71

98.63

24

0.16

0.61

99.23

25

0.13

0.49

99.72

26

0.07

0.28

100.00

Extraction Method: Principal Component Analysis.

Reliability Statistics

Cronbach's

N of Items

Alpha

0.848

26


Statement Number Statement

Factor Loading

Total Factor

Loading

Eigen Value

Factor %

Coverage

20

If I were buying a expensive apparel it wouldn’t make much difference among the brands I choose.

.900

3.788

7.265 Price

Insensitive

67%

19

It is a part of my value system to shop around for the best buy.

.882

21

The brand of apparels I buy makes little difference to me .

.744

22

It is not worth reading the Consumer Reports since most branded apparels are about the same.

.645

18

It is important to me to keep up with special deals offered by the branded outlet in my area.

.618

15

Consumerism issues are irrelevant to me in branded apparels.

.829

3.244

2.888

Negative Consumerism

14

For expensive branded apparels I spend a lot of time and effort making my purchase decision, since it is important to get the best deals.

.813

17

It is important to me aware of all the alternatives before buying an expensive branded apparels.

.810

16

I view the purchasing of branded apparels as a rather petty activity, not relevant to my main concern in life.

.792

4 Consumer Reports is not very relevant to me for branded apparels

.738

3.858 2.349 Ergodic

2

Usually reading about branded apparel or asking people about them won’t really help you make a decision.

.691

6 I am not interested in sales for branded apparels.

.646

7 You can’t save a lot of money by careful shopping in branded apparel.

.634

3 I have little or no interest in shopping towards branded apparels.

.629

1

On most Purchase decision the choice I make is of little Consequence towards branded apparels

.520

27

I don’t like to waste a lot of time trying to get a deal on branded apparels.

.848

2.335 1.599 Unregulated

26

I don’t like worrying about the best deal when I go shopping branded apparels, I like spend money as I please.

.802

25 I pay attention to advertisement for branded apparels i am interested in.

.684

10

I am usually not annoyed when I nd out I could have bought something cheaper than I did in branded shopping.

.772

2.124 1.234 Unobstructed

12

Sales don’t excite me in branded apparels.

.677

11 Being a smart shopper is worth the extra time it takes in branded apparels.

.675



28

I am too absorbed in more personality relevant matters to worry about making smart purchases in branded apparels.

.877 1.677 1.137

Self-involved

29 The consumer and business sections of news paper are highly relevant to me.

.800

30

Thinking about what you are going to buy before going shopping won’t make much difference in your long run expectations with branded apparels

.725

1.987 1.065 Value

Conscious 32

Shopping wisely rather a petty issue compared to thinking about how to make more money.

.723

31

I am willing to spend extra time shopping in order to get the cheapest possible price on branded apparels of like quality

.539


ABSTRACT

India is the second most populous country in the world, with over 1.35 billion people (1,35,34,80,791- July 2015)which is

almost one sixth of the world's population and it is projected to be the world's most populous country by 2022. Due to a

highly populated developing economy it faces diverse issues like unemployment, financial inequalities, political

instability, lack of infrastructural growth, low standard of living with burden of improvement in Public health and hygeine.

The MMR of India is 178 which is so high as compared to MMR of UK ( 9) and IMR of India is 38 as compared to IMR of

UK (4) which shows the alarming problems of health care facilities. To improve this scenario and develop the public health

system and facilities, Ministry of Health and Family Welfare, Government of India launched KAYAKALP-Award to public

health facilities in May, 2015. It was launched to fulfill the requirement of Quality Improvement and to complete the

mission of “Swatch Bharat Abhiyaan.” The Process of compliance ( GAP- Closer) of Quality Standards at different level by

Internal, Peer, External Assessment , willhelp to Sustain and Improve Quality by (1) Provision of Proper Financial

Funding, (2) Availability of Proper Infrastructure, (3) Availability of Proper Qualified Human Resources, (4) Provision of

Proper Guidance, Training for Skill Improvement and Capacity Building of employees, (5) Implement Proper

Documentation of Record, forms, SOP, Policy, Licenses, Act, Guidelines (6) Fulfilling the requirement of Equipments &

Instruments, Consumable and Non-Consumable items. This paper tries to study the process of implementation and benefits

of KAYAKALP- Quality Standards for Sustainability and Improvement of quality in public health facilities.

Keywords : Kayakalp, Health System, Globalization, Quality Standards.

INTRODUCTION

Government of India launched KAYAKALP- Awards for

public health facilities for fulfill the requirement of quality

improvement and sustain quality in health care facilities.

This project will become landmark for verdict of Sustainable

quality in public health care facilities by National Quality &

Health Standards

The Swachh Bharat Abhiyaan launched by the Prime

Minister on 2nd October 2014, focuses on promoting

cleanliness in public spaces. Public health care facilities are a

major mechanism of social protection to meet the health care

needs of large segments of the population. Cleanliness and

hygiene in hospitals are critical to preventing infections and

also provide patients and visitors with a positive experience

and encourages healthy behaviour related to clean

environment. As the first principle of healthcare is “to do no

harm” it is essential to have our health care facilities clean

and to ensure adherence to infection control practices.

Swachhta Guidelines for Public Health Facilities are being

issued separately. To complement this effort, the Ministry of

Health & Family Welfare, Government of India is launching

a National Initiative to give Awards to those public health

facilities that demonstrate high levels of cleanliness, hygiene

and infection control.

Kayakalp-Award to public health facilities is one of such

awards for fulfillment of the requirement of Quality

Improvement and Sustain Quality in Health care Facilities

and complete Mission of “Swachh Bharat Abhiyaan”. The

level of cleanliness of public spaces in our country including

in health facilities is a cause for concern. Cleanliness is

important not only from the point of view of aesthetics, but

Dr. Pallavi MehtaAssociate Professor, Faculty of Management, Pacific University, Udaipur

Bhagirath A ChavdaResearch Schoalr, PAHER University, Udaipur

A STUDY ON SUSTAINABILITY AND IMPROVEMENT OF

QUALITY IN HEALTH CARE : COMPLIANCE OF KAYAKALP

- QUALITY STANDARDS


also because lack of cleanliness and hygiene are a major

cause of ill-health. With the launch of the Swachh Bharat

Abhiyaan on Gandhi Jayanthi, 2014. The Prime Minister

reiterated our social responsibility as citizens to help fulfill

Gandhiji's vision of Clean India.

The perception of patients and the public regarding the level

of cleanliness and ambience of a facility directly affects the

level of confidence they have in the health care offered in a

facility. Low levels of cleanliness in our public hospitals are a

deterrent to use by people. Lack of cleanliness is also a

contributor to hospital acquired infections. The Swatch

Bharat Abhiyaan provides us with an opportunity for targeted

focus on corrective action within our hospitals so that we

meet quality standards. Implementing the Swatch Bharat

Abhiyaan in hospitals also provides us with an opportunity to

educate the public about personal responsibility for

cleanliness in the spaces they occupy. The key message of

our education efforts should be that the hospital should

ensure the highest standards of cleanliness, each patient and

hospital visitor has a social responsibility to practice and

propagate cleanliness. The role of influence in adopting

hygiene practices is well known. Patients and attendants,

who see a clean health facility, will be more motivated to

adopt healthy practices. All public health facilities can make

hospitals an area of patient education on healthy and hygienic


D. Subashini and S. Poongodi (2016) in the research

paper “Service Quality and Patients' Satisfaction in

Health Care Sector with reference to Erode District” tried

to explore the concept of service quality in a health care

sector and patients satisfaction in hospitals. The study

was conducted on the basis of five service quality

dimensions and it is found that responsiveness is highly

influenced by the respondents. It is also found that

obtaining feedback from patients is important in order to

improve the quality of health care services.

Hayat Belaid, et.al (2015) in the research paper “The

Quality of Health Services in Bechar Public Hospital

Institution” highlited the fact of health service quality in

public hospital institution and its impact on patients

satisfaction. It was found from the study that lack of

skilled service force results in negative satisfaction of

respondents.

S.M. Irfan and A. Ijaz (2011) in the research paper

“Comparison of Service Quality Between Private and

Public Hospitals : Empirical evidences from Pakistan”

compared the quality of healthcare services delivered by

the public and private hospitals to gain patient satisfaction

. The study revealed that private hospitals are delivering

better quality of services to the patients as compared to

public hospitals. The private hospitals focused on their

patients demands and developed themselves in order to

provide quality healthcare facilities to their patients. All

the people including doctors, nurses and supporting staff

are aimed to provide care to the patients, providing clean

and healthy environment to both patients and their

attendants and proper facilities in the hospital and

development of feedback mechanism.

OBJECTIVES OF THE QUALITY

STANDARDS

The objective of having quality standards is to achieve and

maintain an acceptable standard of quality of care, to make

services more responsive and sensitive to the needs of

people, to improve the availability of and access to quality

health care of people. The quality has two components, i.e.,

technical quality and service quality. Technical quality, on

which service providers are more concerned and has bearing

on outcome or end result of services delivered. Service

quality pertains to aspects of facility based care and services

for which patients are more concerned and has a bearing on

patient satisfaction.

This paper helps to identify the problems and challenges

faced by organization and employees during Implementation

of Quality Standards in the organizations and help to identify

corrective and Preventive action taken by the organization

for improving the quality in their organization by quality

standards.

DATA ANALYSIS

Ho1 : Cha l l enges faced by employees dur ing

implementation of quality standards have no significant

relationship with type of hospital i.e. public and private.

Interpretation: To study the relationship between Challenges faced by employees during implementation of quality standards and type of hospital , correlation test was applied to see the type of relationship between various challenges and hospital category. The correlation between five variables was tested at 0.01 level of significance and a significant positive and negative correlation were seen among variables under study.

Continuous accreditation of quality standards in hospital has a high positive relationship with problem and Issues like H.R., finance, team work, leadership, training, proper infrastructure, availability of equipments & instruments, documentation, establishment of vision- mission & goal, spirit or ambitions of employees for its implementation and sustain & improvement

Quality of health Facility has a high positive correlation with implementation of quality standards, creating certain issues between higher authority and employees.

Implementation of quality standards is a challenging process and has a high negative correlation with type of

Correlations

type of

hospital

continuous

accreditation

improves

Quality

creates

problem

challenging

higher

authority

Spearmans rho

type of hospital

Correlation Coefcient 1.000 -.172 -.206 -.088 -.209 .039

Sig. (2-tailed) . .007 .001 .164 .001 .536

N 500 250 250 250 250 250

continuous

accreditation

Correlation Coefcient -.172 1.000 .771 -.023 .813 -.655

Sig. (2-tailed) .007 .000 .717 .000 .000

N 250 250 250 250 250 250

improves Quality

Correlation Coefcient -.206 .771 1.000 .551 .992 -.184

Sig. (2-tailed) .001 .000 .000 .000 .003

N 250 250 250 250 250 250

creates problem

Correlation Coefcient -.088 -.023 .551 1.000 .447 .214

Sig. (2-tailed) .164 .717 .000 . .000 .001

N 250 250 250 250 250 250

challenging

Correlation Coefcient -.209 .813 .992 .447 1.000 -.186

Sig. (2-tailed) .001 .000 .000 .000 .003

N 250 250 250 250 250 250

higher authority

Correlation Coefcient .039 -.655 -.184 .214 -.186 1.000

Sig. (2-tailed) .536 .000 .003 .001 .003 .

N 250 250 250 250 250 250

hospital

Implementation of quality standards is a challenging process has a high positive correlation with improvement in quality of health facility.

Implementation of quality standards, create certain issues between higher authority and employees which has high negative correlation with continuous accreditation of quality standards in the hospital.

When type of hospital attribute is correlated with the major challenges we can see the following results:

Continuous accreditation, improves quality, creates problem and challenging have negative correlation with the type of hospitals, and

Only higher authority is positively correlated with the type of hospital

Significant correlation values can be seen from the table where variables under study are correlated with each other either in positive or negative manner. Thus, we can interpret


that the challenges faced by organizations during implementation of quality standards have a significant relationship with type of hospital.

H02: Service quality of type of hospitals have no relationship with accreditation of quality standards.

Table : Classification of Hospitals on the basis of

Standard Accreditation

Standard Accreditation

Public Private Total

Yes 6 16 22

No 24 4 28

Total 30 20 50

Interpretation: The public and private hospitals were

segregated on the basis of implementation of quality

standards . out of 20 private hospitals 16 have accreditation to

one of the quality standards and out of 30 public hospitals

only 6 have some quality standard accreditation . the

objective To analyze the corrective and Preventive action

taken by the organization for sustain and Improve quality in

their organization by quality standards. Was assessed by the

null hypothesis . the chi square test was applied whose results

are shown below

Interpretation: The null hypothesis is rejected when tested by applying chi square to test the association between two attributes i.e. service quality of type of hospital and quality accreditation at 95% level of significance and 1 degree of freedom. The calculated value is much greater than the tabular value and so the null hypothesis is rejected and we can interpret that the service quality of hospital have a strong relationship with accreditation of quality standards which proves that various quality standards can improve the service quality offered by public and private hospital to ensure proper health management of the community.

It is recommended that hospital should be accreditated with appropriate quality standards to maintain a better level of service quality which can enhance the brand image and popularity of hospital among employees and patients. The standard accreditations should be adopted even by public hospitals for the betterment of health services.

Table : Chi Square Value

Tabular

Value

Calculated

Value

Degree of

Freedom

H0

Accepted or

Rejected

3.84 17.54 1 rejected

CONCLUSION

Continuous improvement and sustainability is a cause for concern among service providers so that quality assessment is done through systematic techniques and involves a process which is rational and have a strategic vision of quality. In the contemporary context of quality standards in health specially within the scope of hospitals, significant focus has been placed on the implementation of quality standard and accreditation system which is defined as a systematic method allowed for quality assessment of services.The study revealed interesting information about the inclination of public and private hospitals towards adoption of quality standards. It is clear that the success of implementation and monitoring of accreditation depends on rational, innovative and participative human resources. he employees and the

Quality in health is a multidimensional phenomenon and bears a stake towards all the entities associated with the organization. Hospital category and type may have different views, benefits and difficulties related to implementation and maintenance of quality standards. The challenges faced by the organizations revealed that a culture should be created as implementation requires changes in the work processes and may be obstructed by various issues like workforce resistance, unawareness, lack of knowledge, staff turnover and so on.

In recent years, much efforts and energy has been directed to improve the quality of care in both public and private sector. The new health policy has also changed the vision of hospitals and the performance scores of hospitals have changed.

REFERENCES

Sharma Karun Dev (2012) “Implementing Quality

Process in Public Sector Hospitals in India: The Journey

Begins” Indian Journal of Community Medicine (150-

152). File retrieved from https:// www.ncbi. nlm.nih.gov/

pmc/articles/PMC3483506/

Emad A. Al-Shdaifat (2015) “Implementation of Total

Quality Management in Hospitals” Journal of Taibah

University Medical Sciences (461-466). Vol. 10, Issue 4.

File Retrieved from https:// www.sciencedirect.com/

science/article/pii/S1658361215000761

Tuomi Ville (2010) “How to Develop Quality Management

Sys t em in a Hosp i t a l ” F i l e Re t r i eved f rom

https://www.researchgate.net/publication/267249264_How_t

o_Develop_Quality_Management_System_in_a_Hospital

Wagner C, et.al (2006) “The Implementation of Quality

Management Systems in Hospitals: A Comparison

between Three Countries” International Journal for

Equity in Health. File Retrieved from https://

bmchealthservres.biomedcentral.com/articles/10.1186/1

472-6963-6-50



ABSTRACT

Business economy is an important part of our economic structure. Earning profit is not the only goal of present day business

but to serve the society and to satisfy its employees as well as customers.. Today sound relations matters a lot and are

necessary for the corporate success. Corporate Social Responsibility helps in winning the customer loyalty and confidence

. CSR has been given several names as corporate citizenship, social responsibility or social philanthropy. CSR as described

by Lord Holme and Richard Watts in 'Making Good Business Sense'. Society began to expect business to voluntarily

participate in solving societal problems whether they had caused those problems or not. According to World Business

council for sustainable development “Corporate social responsibility is the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of the workplace and their families as

well as the local community and society at large” Companies with high CSR standards are able to demonstrate their

responsibilities to the stock holders, employees, customers, and the general public.

As per United Nations and the European Commission, Corporate Social Responsibility (CSR) leads to triple bottom-line:

profits, protection of environment and fight for social justice. A recent survey reveals that 79 percent of Americans prefer to

buy products of companies that actively engage in corporate social responsibility events. This is quiet evident from the shift

of the economy from short term objective to long term goal i.e. from profit sharing to survival in the business world by

building reputation among the stakeholders. Companies are spending 2% of their profits on the upliftment and development

of the society and country .Even companies are having CSR board committees . Now India is the only country to have CSR

legislation. But this is not the task which can be done in isolation. Alone government can do nothing and only companies can

do nothing. It is a mutual venture by government and the corporate world. In this connection Indian business world should

go beyond their economic and legal obligations to establish mutual trust and accept responsibilities related to the betterment

of society. The aim of this paper is to find out- Issues and challenges faced by corporate social responsibility strategies in

community development in India.

Keywords : Corporate Social Responsibility, Community, Ethical , Legislation, Profit

INTRODUCTION

Corporate social responsibility is self governance effort of

a corporate .It is known by different names like corporate

conscience , corporate citizenship or responsible business or

social philanthropy. Giant businesses look after the

commitment to law of land , ethical standard fulfillment and

development of community . Business man always do

whatever is beneficial for him . Running social projects is

another way to accomplish his long term goal of survival and

large chunks of profit by establishing shareholder trust and

high ethical standards and by taking responsibility for their

action. It is a promotional effort for the corporate world.

Operating a business in a manner that meets or exceeds the

ethical ,legal, commercial and public expectations that

society has of business.

OBJECTIVES OF STUDY

* To understand the meaning of Corporate social

responsibility

* To study the history of CSR .

* To Learn instances of CSR in the corporate world.

* To study issues in CSR in detail.


The study is primarily based on secondary data. It is

descriptive type .Considering the objectives , the research

design was adopted to have greater accuracy and in depth

analysis of the study. Data is taken from secondary sources

CORPORATE SOCIAL RESPONSIBILITY AND ISSUES IN INDIA

Dr. Nitin GuptaProfessor, Lovely Professional University, Punjab

Chetna SharmaResearch Scholar, Lovely Professional University, Punjab

,articles , books and web is also used.

DESCRIPTION

This practice is largely practiced in India. But still it is in its

nascent stage. Many organizations are spreading knowledge

among corporate masses about essence and necessity of

following the criteria of CSR. Pioneers have segregated

history of CSR in four different phases. These divisions are

not rigidly defined and had some duplication in features.

Cultures and traditions accompanied with industrialization

had a great impact on CSR in the first phase. In that phase

corporate resorted to CHARITY and PHILANTHROPY. In

the period prior to industrialization wealthy merchants

constructed temples for common masses. But after the

advent of industrialization the approach to CSR changed

completely. Big giants of the present era like Tata, Godrej,

Bajaj , Birla etc were accustomed to social and economic

considerations. Second phase was influenced by Gandhian

ideology that industries are “temples of modern India”

Several trusts were established for schools and colleges and

many training and scientific institutions were also

established in that phase. Their main focus was on removal of

untouchability, empowerment of women and upliftment and

progress of rural areas. In the third phase Private sector were

made backbenchers and priority was given to Public sector .It

was a period of command and control. Fourth phase followed

sustainability pattern. It was marked as an era of

Globalization and liberalization..Indian industries were

having an additional burden to cope with the international

standards to fulfill CSR.

ADVANTAGES OF CSR TO DIFFERENT

SECTIONS

I Company benefits:

*better financial performance.

* less operational cost.

*Improved goodwill and branding

*increase in sales

*Customer retention.

*more productivity and enhanced quality.

*developed ability to retain efficient employees.

*Access to resources both financial as well as non financial

*reduction in liability and more safe products.

II. Benefits to the community and to the general public

*Community education

*hospitals and free medical facilities

*old age shelters homes

*Orhanages

*employees safet and training programmes.

*qualitative and safe product.

III. Environmental benefits

*recycling of industrial waste

*more durable products;

*less wastage of resources

*less pollution

*less health problems

RECENT TRENDS

Today CSR is regarded as an important issue by the CEO's of

companies. It is also being considered important by the

government local as well as national , both local and national

NGO , consumer groups, investors group and by other actors

in society(Das Gupta and Das Gupta 2005). CSR is very

popular in India. Many big business houses like Tata ,Birla

etc are doing social service since their inception .Now there is

a transformation from serving the society to bringing

sustainability. That's why company has formed CSR an part

of corporate strategy(Das Gupta 2010). CSR Teams in

companies form policies , strategies and goals for their CSR

programs and also decide budgetry allocation for the same.

These all activities are performed according to social

philosophy and are merged with corporate objectives.

Employees are the best supporter in such programs and they

devote their time and lend their full cooperation to make

these programs a great success. Such actions not only uplift

the society but also leads to all round development of the

nation. It is wrong to say that CSR is related to community

development only. It is a group of activities that are involved

in managing a business. It involves stakeholders

participation , managing relations in supply chain, consumer

and customer relations, corporate governance, human

resource management, environment etc (Pramar 2010). All

activities related to CSR will lead to a wonderful change.

Change is always needed .Corporate houses can use their

financial, human , strategic and critical thinking to bring such

a desirable change. Many corporate houses like Bharat

Petroleum Corporation limited, Maruti Suzuki India ltd., and

Hindustan Unilever Ltd have adopted many rural areas for

the purpose of their regional development –also a CSR. In

these villages they have provided facilities of school,

hospitals , sanitation facilities and help in developing



vocational skills among the people there so that they can earn

their livelihood themselves. In pharmaceutical corporate

world .GlaxoSmithKline pharmaceutical has emphasized on

health and healthy living. They provide free medical health

checkups and medical treatment camps in tribal areas. There

are many NGOs which are well aware with problems of the

local areas and have experience of handling such problems.

Many Companies work in collaboration of such NGOs to do

good to the society and to the nation. For example SAP India

and Hope foundation (NGO working for poor and helpless

people) worked together to provide rehabilitation for

tsunami victims .What we think as voluntary effort is only a

mirage. Not even a single company is interested to spend

their hard-earned money themselves for the benefit of others.

Some mandatory laws are required to make CSR a regular

practice by the corporate world. Denmark made a law on

CSR on 16th December 2008.Now it is compulsory for them

to include CSR in their financial report.

BEST PRACTICES FOLLOWED BY INDIAN

COMPANIES

ONGC AND INDIAN OIL CORPORATION

In 2007-08 Rs. 246.70 crores was spent by oil PSUs on CSR

activities.

ONGC CSR projects focus on higher education, grant of

scholarship and aid to deserving young pupils of less

privileged sections of society, facilities for constructing

schools etc.

SAIL

It worked for environment protection , health and medical

facilities, women upliftment and provision of drinking water.

BHEL AND INDIAN AIRLINES

Airlines provide help in disaster management. 56 villages

with 80,000 inhabitants has been adopted by BHEL

THE COCA COLA COMPANY

Support my school is a joint effort of Coca Cola

Company and NDTV Women empowerment program is

also undertaken by Coca Cola company.

Under this program, The Coca-Cola Company Is working

for the empowerment of 5 million women by 2020. By

empowering women it is helping to develop sustainable

communities.

It is also working in partnership with DEKA R&D to

provide clean drinking water to the community.

It worked with Rotary Internationals against polio.

Standard of living of African women and girls was also

improved with its effort.

Against AIDS it worked with RED.

RELIANCE INDUSTRIES

Project Drishti for poor and weaker sections' visually

handicapped people is one of the CSR activity of Reliance

Industries.

It has illuminated lives of 5000 people or even more.

Reliance Power is working hard to bring social and economic

development in the areas near their sites.

Reliance emphasizes great importance to the children and

view them as future of the nation. That's why HEE i.e. Health,

Education and Environment are the main elements of their

programs.

HEALTH

It is providing free medical facility centres ,mobile medical

vans for distributing free medicines to the needy people .It

also organize various camps like eye check-up camps , health

check-up camps etc from time to time.

EDUCATION

It has opened D.A.V. school for Project Affected families

and for the children of the villages around the sites, Free

school bus facility for students, and also give stipend to every

child who attends the school, free uniforms , teaching aids to

teachers and night schools for adults who are uneducated..

EMPLOYMENT

It is helping in skill development and is providing Computer

coaching center, English speaking classes, Physiotherapy

training center -etc. Soft skills like tailoring ,poultry farming

etc are also being taught to the village women in order to

make them self reliant . Monetary help is also provided by

Reliance on occasions like marriage etc.

BAJAJ ELECTRICALS LIMITED

Its CSR activities run from education , rural development to

environment.

Source: Prowess data 2013-14

This shows that CSR is gradually moving to an increasing

trend in public sector rather than in private sector.

ISSUES IN CSR

There are number of challenges to the implementation of

CSR. They are enumerated below:

* Lack of interest of general public: In a country like India,

people hardly bothers about CSR activities undertaken by the

companies. The problem is more serious because there is lack

of interaction among the companies and the general public.

* Requirement to develop trained NGOs : There is a

scarcity of well trained organizations to undertake the task of

CSR.

* Less transparency: This another challenge that need to be

dealt with a great caution.

This is a common problem among small scale companies as

they hardly bothers to disclose their accounts, publish or

represent true picture of their financial position etc. This has

negative impact on all those organizations which are playing

an important role in CSR initiatives.

*Visibility Factor : Media plays an important role in

creating positive image of the companies among the masses

as it always sensitizes the CSR initiatives taken by the

companies and establish the goodwill among the people. This

made the NGOs to involve themselves in event based

programs , missing out some important actions that need to

be taken by them .

* Narrow thinking : NGOs and government have narrow

perception about the companies involved in CSR activities

.They take their actions as donor –driven rather than a

responsible corporate citizen effort. This mad them to think

twice to conduct such activities in the medium and long term

or not.

* Unclear guidelines regarding CSR : In the absence of

clear cut guidelines about the CSR activities , the corporate

find it very difficult to perform such responsible behavior.

Assume that the bigger the size of the business the more

responsible the company should be towards the society. But

actual guidelines are not so.

Lack Of unity in Implementing CSR Issues : There is lack

of concurrence amongst

implementing agencies regarding CSR projects. This often

leads to duplication of activities by companies in areas of

their intervention. This results in unnecessary competition

among the companies rather than service of the society and

the nation. 2045 Parveen Maan

* Frustrating work environment : In a non profit working

environment, burden is more on the resources but are deficit.

Moreover the employees have no clear idea about the

achievement that is to be made.

* Linkages between Business and society: The survival of

any business depends upon the goodwill , it has among its

customers and prospects. CSR is considered as philanthropy

at first but with better understanding with the stakeholders , it

has become a part of corporate strategy. It seems as if

companies are not serving the society but are realizing their

selfish motives by fascinating their customers and their

prospect customers.

*Resource Investment: It is very difficult for the small

companies to convince the investors to spend their resources

to a program which is not according to the bottom-line of the

business . So they give an explanation that customer buying

decision is influenced with company role in fulfilling its

moral behavior towards the society. In a post written for the

Center for Corporate Citizenship at the Boston College

Carroll School of Management, McDonalds's vice-president

for social responsibility, illustrates how corporate

responsibility helped McDonald's use less water and energy

and reduce waste.

*Company Integration : Corporate Responsibility program

should be an integral part of the company. Stakeholders

hardly support one time programs. Timing of program can

also be a problem for the companies.

*Communication: Small business man should not be self

assumptionary that people are well aware about their sincere

efforts towards the society and nation at large.They should

explain the CSR activities done by them and how they are

undertaking such activities. Langert Vice president of

McDonald's explain why companies include CSR efforts

reports in their reports and also display CSR activities on

their company websites.

*Investors influence: Nowadays , investors give preference

Trend Of Average CSR Expenditure WithRespect To Wonership

160140120100

80604020

0Private Public Private Public Private Public

201320122013

X axis : Year and Ownership, Y‐axis, Average CSR expenditure (in Million rupees)Source : calculated by the authors using Process data for the year 2012‐13


to the companies which are ethically strong. The Social

investment forumreports that in the US in 1999, there was

more than $2 trillion worth of assets invested in portfolios

that used screens linked to the environment and social

responsibility. A survey by Environics revealed that

Americans give importance to ethics while purchasing any

product.

*Health and Safety : There are many companies like alcohol,

tobacco, textiles etc where working environment is hazardous

to the health of those who consume such products or those who

work there. If these companies are producing such harmful

products than where their ethics have gone. Are they having

any ethical concerns or not ?This is an issue to discuss.

* Technology: The business leaders have to take care that

their companies use technology for legitimate purpose.

Certain companies check mails and online use of employees

for this purpose and in this it has to take care that their privacy

would not be intruded by the company.

* Fair working conditions : It is necessary for any company

to maintain free and fair play environment in the company .It

should reward the deserving and punish the guilty. Partial

behavior should not be followed by the company.

*Supplier Relations: As stakeholders are showing their

interest in the routine work of the companies , so it is the duty

of the company that their company illustrates CSR . Some are

introducing codes of conduct for their suppliers so that they

can behave ethically.

*Which Issue is to focus first : In the year 2011, a survey

was conducted by Oxford Poverty and Human Development

Initiative which estimated that 650 million people or nearly

more than 50% population live in poverty in India. UNICEF

data states that out of three children one is malnourished in

India. There are many problems faced by these poor peoples

like, health problems, poverty, poor sanitation and living

conditions etc. The main delimma is which area is to be

focused by companies on prior basis.

*Capacity Building : Indian companies have scarcity of

trained manpower and tech know how to develop or

formulate proper corporate social responsibility strategies.

There is requirement of training institutes to train companies

'official in CSR strategies and policy making procedures.

*Trust deficit : There is lack of trust between the companies

and the NGOs regarding transparency and in framing the

program of CSR. corporate houses always have suspicion on

them. They are not able to understand that hoe will they

convince the community? Corporates feel that NGOs are

inefficient and incompetent .

*Deceptive actions by private companies: Many trusts

establish by the private corporate are not at all formed to do

CSR but to befool the innocent people. Many private

companies transfer funds to these trusts or foundations and

later on such funds are sent back to the principal company in

way or another way.

*Project Development: The CSR projects run through

series of projects having proper start, end , output and results.

They can be a short term or long term projects. A company

can do CSR through its own team or can outsource the help of

some outside agencies. It is necessary to do annual review of

such CSR projects. But for corporates It is still a challenge

to learn project development .

*Developing KPI,s for CSR reviews: Companies calculate

the CSR results in quantitative terms but they have to

understand that fulfilling social responsibility is an attribute

which requires qualitative study.

*Hunting of Human Resource: A report states that there is

an increasing demand for CSR professionals. Talent hunt

begins from the NGOs by the corporate houses. They attract

them by offering them handsome salaries. This adversely

affects the ongoing CSR projects. There is an urgent

requisition to train fresh resource for this purpose.

CONCLUSION

CSR is not an easy task to undertake .It is a complete package

of different actions that are directed for the benefit of the

society and needs great expertise. It is combined effort of

both the corporate house and the government as well as non -

governmental organizations. In order to deal with issues

discussed above certain recommendations can work wonders

to establish CSR on firm grounds. Firstly it is the duty of the

media to advertise good efforts taken by the corporates for

the benefit of the society and the nation. This creates

awareness among the general public about the CSR activities

done by the companies and it also inspire them to know more

and keep a close watch on them. This also motivates another

business houses to indulge in CSR activities. It is necessary

to create links among all the stakeholders to implement CSR

initiatives successfully. More and more companies are to be

brought under the regime of CSR. A campaign should be

launched to involve SMEs more actively in CSR activities.

This will help to spread CSr to other locations and among

new communities. International Conference on Technology

and Business Management March 28-30, 2011. Corporate

houses and NGOs should pool Their resources to build

synergies so that CSR plans and projects can Be

implemented more effectively.


Companies should focus them not only on the development

of the urban India but they should consider the needs of the

poor and needy people in the rural India as well. They should

look after the needs of education, sanitation, child labor,

Health facilities in such places so as to bring all round

development of the villages. After all more than 70%

population of India reside in rural areas. Government should

reward the corporate house who do great efforts in CSR

areas. Proper incentives should be given to the private sector,

easy grant of 12A, deduction of 80G and Foreign

Contribution Regulation Act license, tax breaks for social

projects. This will lead to voluntary participation of the

private sectors in these initiatives. There should be proper

accreditation mechanism for making CSR as an important

part of business. There should be a national alliance for

corporate social responsibility in order to avoid unnecessary

competitive spirit among the business houses. This alliance

should take a wider based development agenda and it should

provide high value services to poor and needy people. With

the passage of time it would become an important body to

make valuable and qualitative interventions in CSR

activities.

REFERENCES

(N.D.). Retrieved from www.studymode.com.

Gupta, A. D. (2014). Implementing Corporate Social

ResponsibilityIn India : Issues and the Beyond. Retrieved

from www.springer.com.

http://smallbusiness.chron.com/problems. (n.d.).

K.Ashwathappa. (n.d.). Human Resource Development.

Tata Mcgraw Hill publications Ltd.

kazim, s. (2013, April 23).

Mann, P. (2014). CSR -Key issues and challenges in

India. International Journal of Science , Environment and

Technology , 2038-2045.

P.Sivaranjini, T. T. (n.d.). Issues and Challenges faced by

Corporate. IOSR journal of Business and Management ,

58-61.

PamelaS.Schindler, D. R. (n.d.). Business Research

Methods. Tata Mcgraw Hill Publications ltd.

R.Berad, N. Corporate Socilal Responsibility -Issues

aand Challenges. International Conference on

Technology and Business management.

Shaw, T. N. (n.d.). Operational Challenges Implementing

CSR India.

www.scribd .com. (n.d.).

Yasmin Begum R.Nadaf, S. M. (2014). Corporate Social

Responsibility-Issues ,Challenges and Strategies for

Indian Firms. IOSRJournal of Business and Management

, 51-56.



ABSTRACT

Co-creation is a recent model that has concentrated on what customer is looking for not on what a industry wants to produce.

Cost effectiveness & rich interaction opportunities with the help of internet & social networking sites have provided a

sustainable platform for customer co creation, value addition & overall success of a new product. The meaning of value

creation and the process of value creation are rapidly shifting from a product and firm-centric view to personalized

consumer experiences. In this digitalized era, delivering greater customer value has become an ongoing concern in building

& sustaining competitive advantage by driving customer relationship management. The paper explores the basic concepts

of customer co creation, how these co creations helps in building the relationship of customer & firms, use of social media

for value addition activities & engagement of customer for product development process.

Keywords: Value Creation, Co-Creation, Satisfaction, Innovation, Customer Engagement, Digitalization, Social Media

INTRODUCTION

Prahalad and Ramaswamy, defined co-creation as “The joint

creation of value by the company and the customer; allowing

the customer to co-construct the service experience to suit

their context” Information asymmetry between customer

demand & firm's capabilities, customer empowerment &

widespread application of digital technology are the major

attributes for initialization of customer co creation term.

Customers are seeking for more active role. Social

networking sites, internet & digital literacy have become an

interface between the company & its users. At a MacWorld

conference in 2007, Sam Lucente, the legendary design and

innovation guru at Hewlett-Packard, described his epiphany

that designers can no longer design products alone, using

their brilliance and magic. They are no longer in the business

of product and service design, he stated; they are really in the

business of customer co-creation.

The traditional perception where the value is created by a

“producer” & “customer” was just the consumer. But in

modern area of competition where differentiation is

continuous process has replaced the concept of producer as

value creator. More recently, this producer-consumer model

has begun to be replaced by a model of co-creation of value, a

model in which value is created through the joint activities of

providers and customers but also the activities of others in the

networks of these parties.

The purpose of the present research is to investigate

descriptively the different approaches of customer co

creation, understanding the role of social media in value

creation, co creation as tool for relationship management & a

source for content development as well as to begin to explore

the relationship between co-creative approaches and

outcomes.To accomplish these purposes, first we understand

the basic concept of co creation, next is to understand and

connect the co creation with the prospects of value creation

and how social networks, internet & digital literacy pool

themselves together for bridging the gap between firms

potential & what customer is looking for.

LITERATURE REVIEW

The literature review is majorly deals in two parts:

(1) Role of demographic variables in the co-creation

process;

(2) Understanding the co-creation process & its influence in

shaping customer satisfaction.

According to the study named as 'Demography and

design: Predictors of New product team performance

(Deborah Glandstein Ancona & David F. Cladwell, 1992)',

Neha SahuAssistant Professor, IBMR, IPS Academy, Indore

Nidhi Jhawar Assistant Professor, IBMR, IPS Academy, Indore

CUSTOMER CO-CREATION: STRATEGIC TOOLFOR CUSTOMER ENGAGEMENT

Organizations are focusing on team work for new product

development. This paper discusses on how team formulated

& work divided among each member for product

development. Employee works as a co-creator for this

process. Demographic diversity of employees in term of the

tenure they spent in the organization, culture & education

level has an impact on product development process. The

paper introduce the way how the uniqueness of the diversity

can bring a constructive impact on product development. At

present, the new product development is not restricting with

team within the organization but a great contribution from

the society who are the end consumer of that innovation.

In the literature 'Co-opting customer competence (C.K.

Prahalad and Venkat Ramaswamy,2000)' it is clearly

pointed out that customer experience management should

essentionally incorporated with business models. Also, the

paper discusses the evolution and transformation customers.

Customers are shifted from passive participation to active

participation in this digital age. They are more

knowledgeable & show great interest in exchanging views

about the products & their features.

In the McKinsey quarterly review (July, 2011), in the article

'How we see it: three senior executives on the future of

marketing' it is revealed that today is an epoch of customer

engagement. It is a hit and trial strategy where you connect

with your customer, listen them & tries incorporating all

valuable suggestions. Virgin Atlantic Airways CEO Steve

Ridgway mentioned about how his company has been

pushing the boundaries of collaborating with customers,

while experiencing the pleasant surprise of a successful

mass-media campaign. American Express CMO John Hayes

discusses about few steps he has taken for customer co-

creation that helped organization to stand apart from the

existing competition. Duncan Watts, principal research

scientist of the Human Social Dynamics group at

Yahoo! Research, explains how today's data-rich

surroundings expose the restrictions of instinct in marketing

and the need to get a scientific approach to know consumers.

The story state that co-creation cannot be completed with the

organizational support. Organizational structure need to

reform according to the modern customer centric approach.

Customer & company interaction touch points need to be

increase; to support this modification should be in

organizational structure. Recruitment of new employees,

reshape customer care strategies & most important is develop

the online community for easy & effective communication.

Company as a whole should engage to adopt and accept the

new marketing revolution called “co-creation”.

In the literature 'Relationship Glue: Customers and

Marketers Co-Creating a Purchase Experience (Edwin

Rajah, Roger Marshall & Inwoo Nam, 2008)' it is discussed

that co-creation is a mutual process occurs when marketer &

customer come together to create value. This report is the

empirical study liking many aspects called; co-creation,

trust, loyalty & relationship. Customers varies according to

their contribution in co-creation process while satisfaction

level they posses is on an average same. The research

variables measures & structural equation model shows that a

positive relationship, where co-creation definitely has an

impact on relationship building, trust & loyalty that insist the

customer for repeat purchase. This paper also deals in the

benefits of customer co-creation & sustainable competitive

advantage of adopting the strategy.

In the literature 'Co- experiences: The next practice in

value creation (C.K. Prahalad and Venkat Ramaswamy,

2004) they have discussed, the interaction becomes the pillar

for value creation. Now interaction is not limit with point of

exchange or customer service. Traditionally the definition of

interaction was where the transaction between buyer & seller

takes place, the point of purchase in the market and value was

created through firm's value chain system. On the other hand

in customer centric system they participate aggressively for

value creation in the firms offerings. Customer satisfaction is

not only derived from the value they get but also from the

whole experience of interaction with the company.

THREE MODES OF INTERACTING WITH

CUSTOMERS IN THE INNOVATION PROCESS

Access to customer information is one of the basic

requirements for any successful innovation (Cooper 1993).In

the past studies, contribution of the customers for the

innovation processis a growing field. This research also has

identified some contributions of customers that seem to go

beyond their traditional role of being a mere respondent to a

company's activities (see for an overview Danneels 2002;

Fredberg and Piller 2008; Fang 2008; Carbonell et al 2009).

The studies exhibit a broadconsent on the benefit of customer

integration for innovative performance. They also signify the

various roles a customer plays for an innovating process.

Some studies propose that contributing customers should

have special characteristics (Gruner and Homburg 2000;

Urban and von Hippel 1988), implying that not all customers

are equally suited to contribute to the innovation process.

Other studies, however, stress the need for a broad interaction

with customers for successful innovation (Gales and

Mansour Cole 1995; Joshi and Sharma 2004; Magnusson

2009). In general, however, this research indicates that


customers can take different roles in the innovation

process.Customers can distinguish in two categories, some

may help in forecasting the future trends, and others are best

suited for value creation, evaluate the innovative concept &

modify the existing one.

Three Modes can be discussed as the introduction part of

customer co creation. Firstly the steps of customer co

creation, second what all motivates the customer to share

ideas and suggestions & the third step is different type of

customer co creation a firm may engage itself.

A successful customer co creation's process starts with the

steps involve in engagement of customer. First of all a

company must convince its customer for the contribution.

Social networking sites are the rich source to get in touch

with these innovative users & to collaborate with them.

Thousands of people talk about your product on social media.

Just listen what they are talking about your product in the

community, user's gives bunch of opinions. Opinions & ideas

can be drawn from social networks, review sites, user

generated content, forums & blogs. Contest can be organized

to utilize the wisdom of the crowed. A successful story of

BMW, more than 1100 users joined BMW's Interior idea

contest and submitted almost 750 ideas not only the ideas but

also provided extensive feedback on idea submitted by

others. The second is to select few viable once from the

gathering you received it's the selection step. Both the steps

are quite challenging. Not all these ideas have the positional

to become breakthrough innovations, you have to find the

gold nuggets & develop them into the concepts. Unlike other

marketing strategies co creation is playful, intuitive &

compelling.

The second part of the co creation process is motivating the

customer who gives the valuable time & suggestions for the

value creation process. There are two ways to motivate to

customer either give them social recognition or financial

rewards. Make the use of both social & financial incentives.

Sometimes customer engagement in production process for

which a he has given the idea is the best tool for motivating

them. Customer engagement in production attaches them

emotionally with the brand & allows them to give a positive

diffusion for the product as user was the part of the

manufacturing process.

The last part of the process is to talk about four different type

of customer co creation based on 2 by 2 matrixes. X axis

shows the contribution steps & Y axis shows the selection

steps & provides 4 combinations how a firm takes part in

customer co creation activity.On the X axis the first box is

fixed shows that customer has very little control over

contribution activity & firm receives lesser then the amount

of contribution it is looking for. The second box is open

where customer involvement is very high, Customer may

contribute anything they would like to about a particular

product or an idea.

On the Y axis the first box is Firms Led where in no

contribution from the customer in selection process of

suggestion or idea. Firms itself chooses the best from the

bunch of idea.The second box is Customer Led firm realize

more on customer for the selection of idea. The ideas that get

more points, thumps up & votes from the community will be

selected & implemented.

So this 2x2 matrix provides 4 customer co creation

combinations. Fixed and firm led combination is called

Submitting where firms get very few ideas & select the best by

its own analysis. On the upper right its Collaborating a

combination of open & customer led where customer has

enough control in idea generation & firm select the one which

is rated high by the community & in the middle of these we

have Co-designing & Tinkering. Co-designing combination of

low idea contribution & high voted will be selected & in

Tinkering from the bundle of idea firm will selected without the

customer involvement in selection process.

Mode 1

Mode 2

Sel

ecti

on A

ctiv

ity

CustomerLed

Led

Fixed Open

Contribution Activity

Mode 3

Customer

Co‐Crea�on

Social

Recogni�on

Financila

Incen�ves

Customer Co‐Crea�on

Contribu�on

Selec�on

Collaborating

Co-Creation

Co-Designing

Submitting Thinking



A typology of Methods for Customer Co-Creation businesses Customers want value. So let' serve it up. One of

the best behaviors to provide value for your customers is to

understand and meet their needs. Customer attraction &

retention for the enlargement of long term & profitable

association is the primary objective of Relationship

Marketing. Philip Kotler, the author of Marketing

Management, summarizes the concept perfectly by stating

that the operating principle of RM is to build a good network

of relationships with key stakeholders, where profits will

follow.

Customer attraction & retention for the enlargement of long

term & profitable association is the primary objective of

Relationship Marketing .Digitalization increases interface

between customer & business that largely helps to shape

business & their respective value proposition. It requires a

brand to adopt a mindset of co creation driven innovation.

A great example of co-creation driving innovation is ''Proctor

& Gambles 100% Open project. They describe it as an

efficient method for generating insight. It's a portal used to:

listen, ideate, create, validate, evaluate and then ultimately

develop products specifically for their target market. Just the

economic saving in research and development alone makes

this a viable concept.

Another company using co-creation to innovate their brand is

Reckitt Benckiser. They have actually created a game to help

develop customer centric marketing initiatives. The game

doesn't only serve as a marketing innovation strategy, but is

structured so that it will also help to recruit outstanding

marketing talent.

Further, internet as an open network where information flows

freely, innovative ideas can be shared, customer feedback

can be coupled in the development of products & services &

this co creation & collaboration occurrence becomes one of

the greatest competitive aspects for business fortitude.

Companies have realized the significance of the two levers of

Customer Value Management Co-creation and Co-creation:

evolution of content marketing

ALL YOU NEED IS THE WILL, THE

SMARTS & A PASSION FOR COMMUNITY

“The next wave of content marketing is getting the

community to create content.”Jennifer Burnham.

Content marketing is the idea that businesses should attract

and retain customers by creating relevant, valuable content,

training marketers to create tons of content, or 'hiring

journalists to be your brands storytellers, only gets you so far.

The next step is to create connection between content

USING SOCIAL MEDIA TO CO-CREATE

VALUE

Communication between company & the customer is

enhanced with the perfect tool call Social media. In

manufacturing, these communications were never there

before, unless the firm spent a lot of money doing focus

groups or collecting survey data. Using Social media as a Co

Creation tool, firms get impartial judgment from real

customers and prospects at a fraction of the cost. Social

media facilitate in co creation through collaborating

innovation in new product development. The better way to

identify the customers need is customers themselves. Using

social media as a mouthpiece for insight is probably the most

value aspect as companies learn customer pain points, their

likings & disliking about their own brands as well as of

competitors. Incorporating valuable suggestions from

customers improves the product & brand image among the

society.

Favorable brand messages shared by customers who are the

micro celebrity of the society construct a favorable brand

image. Consumers believe what their friends tell them much

more than messages they get from the company's

promotional strategy.

BUT HOW DOES IT CREATE A VALUE FOR

CUSTOMERS?

Firm can increase the value of the customer who spend time

and share the encouraging feedback about the brand by

thanking them, by highlighting their comments, &other

strategies that play into the micro celebrity status. Even

rewards can be shared with the customers in the form of

offering them additional discounts & free products.

USER GENERATED CONTENT CREATES

S I G N I F I C A N T VA L U E F O R B O T H

CUSTOMERS & FIRMS

Relationship marketing and co-creation is shaping

Using Social Media toUsing Social Media to

Co‐creatvaluesCo‐creatvalues

Using Social Media to

Co‐creatvalues

Relationship marketingRelationship marketing& co‐creation is& co‐creation is

shaping businessshaping business

Relationship marketing& co‐creation is

shaping business

Co‐creation : evolution ofCo‐creation : evolution ofcontent marketingcontent marketing

Co‐creation : evolution ofcontent marketing

Typology of Mathos forTypology of Mathos forCustomer Co‐CreationCustomer Co‐Creation

Typology of Mathos forCustomer Co‐Creation


The customer is an essential part of the system for value

creation.

The consumer can influence where, when, and how value

is generated.

In this competitive era where market is full of substitute

product the consumer need not admiration industry in the

search for value.

There are multiple points of exchange where the

consumer and the company can co-create value.

The Local Motors, billing itself as “a different kind of Car

Company”, has spurned the industry's traditional ways. It is a

new venture in automobile sector. Jay Rogers founded this

company in 2007 &came up with the idea while he was an

MBA student at Harvard Business School. The company is

located in Chandler, Arizona and is currently selling a variety

of motorized vehicles; including an automobile called the

“Rally Fighter” a typically using a concept of customer co

creation & buyers played an important role in the creation of

a new car.

POWER OF CUSTOMER IN THE DIGITAL WORLD:

CUSTOMER COMPETENCY & CUSTOMER

EMPOWERMENT

Consumer competenceis individual's ability, function, and

talent allowing to taketheir active role as consumers in the

market, driving market system efficiently, fairand proper

(Dickinson). Lee, Ki-Choon defines consumer competence

as a combination of consumers' knowledge, attitude, and

responsibilities to practice in wise manner in the market,

boosting economy alive.Consumption competence is about

searching information, comparing, and purchasing products

by using digital technology and network efficiently and

making evaluations about their purchased products based on

their abilities to manage and use properly digital goods.

Same ways consumer empowerment means consumers will

become less passive in accepting whatever is offered by

employers. Customer Empowerment is “A mental state

usually accompanied by a physical act which enables a

consumer or a group of consumers to put into effect their own

choices through demonstrating their needs, wants and

demands in their decision-making with other individuals or

Customer Centric Approach

Involvement of dynamic customer

Ac�vismAc�vismAc�vismInforma�onInforma�on

AccessAccessInforma�on

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Global ViewGlobal ViewGlobal View

NetworkingNetworkingNetworking

Experimenta�onExperimenta�onExperimenta�on

EmpowerEmpowerFront LineFront LineEmpowerFront Line

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marketing & customer co creation in it. Get the community to

be a part of content creation process.Whom you would like to

encourage is very important to decide in advance. Company

needs to narrow the focus area & understand who they want

to reach, where their target is spending time & what their

interest area is. Best content will come out from those who

are passionate about your brand.

The specific & structured program will speak about the

benefits customer will receive by participating in dialogue

writing.Company has to have a watch on guest blogger,

should share the topics company would like them to write

about. Recognition always boosts the gospellers to write

more & relevant. It becomes real bonding experience when

they become the part of company's extended team.

THE ART OF CO-CREATION

Digitalization as a makeover from traditional company

centric view to consumer centric view.

THE TRADITIONAL COMPANY-CENTRIC VIEW

SAYS

The consumer is not the part of value chain system.

The companies have a control over where, when, and

how value is added in production process.

Value is shaped in a sequence of activities controlled by

the company before the point of purchase.

THE CUSTOMER-CENTRIC VIEW SAYS

organizational bodies in the marketplace (Len Tiu Wright).

After the liberated information system of internet the

consumer participation in business activities have been

increased. Before the emergence of this system, companies

could do everything — selection of raw material, product

design processes &content marketing— with no

interference. Nevertheless, companies should welcome, not

resist, the consumer powers detailed below.

INFORMATION ACCESS

Internet as a source of service provider consumer has

understanding to take much more informed decisions. This

easy access of informationinsisting industries to yield

control over value creation and develop new ways of doing

business. Consider health care. More than 70 million

Americans have reportedly used the Internet to learn about

diseases and treatment options and investigate how to get

involved in clinical drug trials. Consumers now question

their physicians more assertively and participate more in

selection of treatments. This has changed the traditional

pharmaceutical sales practices.

GLOBAL VIEW

24*7 information's are available on Internet& this is the first

single source educate the customer about what all is

happening around the world. Now consumer shows more

involvement in scrutiny product, its price & how well it is

performing across geographies. Customer feedback their

blogs & information shared on public platform educates the

industries to sharpen the business strategies in more

customer centric view. New competitors and even cottage

industries are also emerging in the global marketplace. Even

poor artisans in Rajasthan, India, can sell their artistic work

on the Web and deliver it to buyers in the U.S. in about a

week, and for one-tenth the cost of same product available in

the United States.

NETWORKING

Networking of consumers on the basis of common interest,

preferences & experiences encloses them in a bundle. The

Internet amplifies this by encouraging an absolutecomfort

and openness of communication among perfect strangers.

Internet is a place where people form communities of

interest, where folks confabulate without geographic

restraints and with few social barriers, exist all over the Web.

Individual participating in chat with each other, exchanging

ideas may not know about each other more than their interest

area. The power of consumer network make the individual

independent, now they share their real time experience &

diffuse about the product or services they render.

EXPERIMENTATION

Consumers use the Internet to experiment with and develop

products, especially digital ones. The German research

company Fraunhofer Institute for Experimental Software

Engineering released MP3 as a freely available compression

standard that accelerated the transmission of digital audio.

The collective competence of software users has enabled the

codevelopment of popular products, such as the Apache Web

server software and the Linux operating system. The ability

of consumers to experiment with each other goes beyond

software and digital products. Cooks can share recipes.

Gardening enthusiasts can share tips on growing organic

vegetables. Companies that choose the pathof co-creation

can tap into consumers' creativity for the development of

products and services.

ACTIVISM

Digitalization educates the customer. As the learning

increases customer become more emboldened to speak out.

They become more thoughtful in their selection process of

buying. Now customers providevoluntaryresponse to

companies and among their social group. Anything posted on

social group become viral at very short span of time. The

Web has also become a platform which educates the

customer not only about the product & services they are

using or available in the market but also draws the attention

on the social issues such as environmental protection,

women empowerment, corporate social responsibility &

child labor. Although activism might seem menacing to

companies, it also opens the door to competitive opportunity.

CONCLUSION

Customer co creation not only helps in business expansion

activity but an important tool for customer retention. In

addition to endow them a platform for gathering the valuable

ideas & feedback but also provide them the right training to

make co creation more effective. Before undertaking the co

creation activity it is important to understand the objective of

the study. Objectives may vary according to what firm is

looking from the customer. It may seek for a feedback or a

marketing platform for introduction of new product or

sometimes an idea generation contest for development of

new product. Not all the customers are the best co creators

but picking up the best from the bulk is the significant

challenge a industry faces. The effective co creation is

depending upon how a great dealof value is shaped for both

customers as well as for the company.



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ABSTRACT

Digitalisation has become very essential in current makeover of the manufacturing sector. It brings great opportunities and

is a vigilant devised strategy for companies. Manufacturers are increasingly relying on digitalization including process,

knowledge and communication technologies to enhance their profitability and customer relations. The objective of this

paper is to broaden understanding about the strategic role of digitalization in reshaping business especially, the

manufacturing sector by examining the impact of digital technology over industry performance. This paper mainly focuses

on digitalization investments and its capabilities in drawing upon customers closer to the company.

The article is based on secondary research. Magazines, journals both online and offline, periodicals, newspapers etc have

been taken as source of secondary information. The use of digital technologies is often a prerequisite for the reshape of

businesses. However, some manufacturers believe digitalisation involves huge capital costs and is dilatory. They are of the

view that digitalisation is treacherous as it involves huge loan amounts from banks for technological investments. A review

of the available literature indicates that digitalisation is highly effective for large scale manufacturing industries which are

digitally advanced at every level of production chain which saves time, increases productivity and reduces overall unit

costs. But a large part of the manufacturing sector comprises of small scale industries which face the greatest barrier of lack

of awareness & knowledge regarding digitalisation which makes it complicated to choose the precise digital tools with

limited resources. While there are some companies who have worked solely on data driven business models and developed

quality services and products for the customers. Through the article, attention is drawn to a significant and reframed role of

digitalisation with the use of intelligent autonomous systems comprising of advanced robotics and integrated sensors in the

manufacturing firms. The paper concludes that digitalisation has made communication easy for businesses to connect

smartly with the customers on social, local, mobile and digital platforms.

Keywords: Digitalization, Manufacturing Sector, Communication, Technology

INTRODUCTION

Digitalization is the integration of digital technologies into

everyday life by the digitization of everything that can be

digitized. Digitalization strategy in manufacturing is the use

of an integrated, computer-based system comprised of

simulation, three-dimensional (3D) visualization, analytics

and various collaboration tools to manufacture a product.

Digitalization has great impact on how firms do business and

causes rapid shifts in the strategic environment. Many long-

term benefits can be achieved through comprehensive use of

digitalization strategy in manufacturing. The modern era of

manufacturing has been around for a century now and has

moved through multiple phases, from basic mechanization to

electrification and into automation. However, it's now

entering into a new era with digitalization. We see a transition

from a full human operated world towards a human-machine

operated world within which machines are smarter and

embed the know-how. In the new paradigm, the

manufacturing order can be accomplished by an autonomous

system to reach the outcome.

Indian economy has seen unprecedented growth of e-

commerce in the last 5 years. Increasing internet penetration,

rapid technology adoption and high sale of technical gadgets

DIGITALIZATION STRATEGY FOR RESHAPING BUSINESS AND ECONOMY: A CASE OF MANUFACTURING SECTOR

Dr. Shubhi DhakerAssistant Professor, Faculty of Commerce and Management

Bhupal Nobles' University, Udaipur

Rupali VisenResearch Scholar

Bhupal Nobles University, Udaipur


like smartphones, tablets, etc, have led to an attractive online

customer base. Digitalization has brought social

transformation in the life of common Indians. The present

government has taken up an initiative called “Digital India”

for modernization of the society that will connect every

corner of the country. Studies reveal that use of internet by

Indian Small Manufacturing Industries would fetch 32%

more revenue, 8 to 43 % higher profit, 13 % higher

employment, 22 % higher employment growth, and 18 %

more customers.

Digitalization in manufacturing industries helps in achieving

innovation in mechanical products and in raising the level of

product design, processing and management. What we

looked into throughout this research is the use of direct

digital manufacturing technologies over the conventional

production practices in achieving loyal customers and

competitive advantage.

Digitalisation changes the behavior of consumer from

traditional consumer to digital media. In this new era, to

succeed in this global world, digitalisation is a major driver

of future competitiveness and innovation in the Indian

economy. Nonetheless, a shortage of IT skills, data

protection and data security, high investment and operating

costs and internet connection speeds are the issues mostly

commonly cited by SMEs as obstacles to digitalisation. This

digital trend is changing the way of manufacturing.

The remainder of this paper is organized as follows: Section 2

presents objectives and Section 3 explains the research

methodology. This paper ends with section 4 conclusions;

summarizing the research outcomes, and suggestions for

future investigation are provided.

1 In this report, Nathan Economic Consulting India Private Limited

(Nathan India) joined with the Federation of Indian Chambers of

Commerce and Industry (FICCI) and Google India to analyze the

economic impact of the Internet on India's small and medium sized

enterprises (SMEs).The survey-based study of 951 firms in various

industrial and geographical clusters across India examined how

SMEs use the Internet, quantifies the impact of Internet use on

SMEs' economic performance.


The data has been collected from secondary sources from

websites, journals, magazines, newspaper, thesis etc.

The digital revolution offers a great opportunity to transform.

To succeed in the digital world, innovation acceptance and

identification of new business models is required.

Digitalization requires grasping new opportunities that exist

outside traditional markets. Creating and adopting a strategy

of this kind requires strong senior leadership, a focus on the

customer experience management, and innovation within the

operating model. A commitment to digitalization means that

even giants need to be alert. Companies therefore need to

develop end-to-end digital engagement strategies and

comprehensive digital operating models that concentrate on

suppliers and employees just as much as customers.

DIGITALIZATION IS TRANSFORMING

MANUFACTURING IN A NUMBER OF WAYS

Digital technologies are used to develop intelligent

products that communicate with each other (Internet-of-

things) and/or report back to producers in order to

optimize use, maintenance and energy consumption.

Digital technologies link companies closer to suppliers

and customers allowing for closer cooperation on

innovation, flows of intermediates, inventory control,

adjustment to demand patterns, etc.

Production becomes more digitalised and automated

through the use of robotics and computer aided

manufacturing systems that allow for leaps forward in

labour productivity performance.

Administration tasks are being automated, as well as

communication between different functions in the

internal value chain.

OBJECTIVES

To study the impact of digitalization in transforming

industries.

To identify the advantages and disadvantages of

digitalization strategy in manufacturing industry.

To ident i fy the impact of industry 4 .0 over

manufacturing.

Figure 1 Future of Digitalisation in Manufacturing

Source- Fujitsu 2017 Global Digital Transformation Survey Report

In the planning stageIn the planning stageIn the planning stage

In testingIn testingIn testing

In implementation modeIn implementation modeIn implementation mode

increased revenueincreased revenueincreased revenuestrengthended competitiveness of productsstrengthended competitiveness of productsstrengthended competitiveness of products

improved efficiency or reduced costimproved efficiency or reduced costimproved efficiency or reduced cost

Have already deliveredHave already delivered

positive outcomespositive outcomes

Have already delivered

positive outcomes

57%57%57% 45%45%45% 38%38%38%

of manufacturing organizations

already embarking on

digital transformation38%38%38%

36%36%36%

16%16%16%

10%10%10%

Manufacturing industry is going digital

Figure 2 A programme to transform India into digital

empowered society and knowledge economy.

Source: Digital India

Since the launch of “Make in India” in 2014, much progress

has been achieved in pursuing the country's manufacturing

agenda and global competitiveness. Globally, India is the

sixth-largest manufacturing nation and the biggest recipient

of foreign direct investments (FDIs), with inflows touching

$60 billion in 2016-17, the highest-ever annual inflow into

the country. India has also improved its rank on the Global

Competitiveness Index and Global Innovation Index. India's

manufacturing sector, accounting for just 16-17% of gross

domestic product (GDP), holds enough untapped potential.

India's industrial sector is on verge of a major digital

transformation. Around 65 per cent of the manufacturing

companies in India would have globally competitive levels

of digitization in the next 5 years. The current level of

digitization stands at 27 per cent. Globally, 33 per cent of the

manufacturing firms have already employed digital

strategies and 72 per cent of them would have digitally

transformed by 2020. 53% of the industrial companies in

India are using data analytics and more than 90% expect data

to have a significant impact on their decision-making in five

years.

India has been ranked 53rd among 60 countries in the 2017

Digital Evolution Index (DEI). The list is topped by Norway,

followed by Sweden, Switzerland, Denmark and Finland.

The Index is a comprehensive research that tracks the

progress of the digital economy across 60 countries, taking

into account more than 100 different indicators across four

key drivers: supply, consumer demand, institutional

environment, and innovation.

ADVANTAGES OF DIGITALIZATION

STRATEGY

LOWER RISK & REDUCED COSTS

Through digital innovations such as prototyping and

simulation software, corporations can reduce risks

associated with typical testing. Digital tools used to test

products allow for a more efficient production process, as

well as a platform for sharing and developing knowledge in

an easier way. While implementing these innovations may

get costly, a digital strategy also allows manufacturing

corporations to lower costs through digitizing their analytics

and paperwork, allowing digital planning and information to

be shared throughout the workforce without excess

manufacturing and engineering costs.

FASTER TIME-TO-MARKET

With increased optimization also comes quicker time-to-

market by automating processes and integrating digital

strategies within the workforce. When processes are

automated and made clearer throughout an organization,

collaboration and manufacturing can happen quicker,

allowing products to move from the floor to the market in a

more efficient way. Faster time-to-market doesn't just benefit

the company, it benefits the customer, which, in turn, fosters

an important relationship between the organization and its

customers.

FOSTERING INNOVATION

Digital tools have a significant impact on the fostering of

innovation and new ideas for manufacturing businesses.

Empowering employees through unique, improved

technology allows for an environment of change and

modernization. Technology connects users, and this allows

collaboration, sharing of vital information, remote meetups

and conversations, greater idea generation, and accelerated

development. By empowering your employees with a digital

strategy, you provide your business with a new atmosphere of

innovation.

INCREASED CUSTOMER AWARENESS

A digital strategy naturally leaks its way into marketing and

sales, and this is not a bad thing. Pushing your digital strategy

2 This article “shaping the Future of manufacturing in India” was

written by seema Gaur (Senior Economic Adviser Ministry of

Electronics and Information Technology) in Livemint E-paper.

The article focused on India’s manufacturing sector, its potential

and challenges faced.

3 The PwC Global industry 4.0 Survey was based on research

conducted between November 2015 and January 2016 with

alomost 2,100 senior executives from industrial products

companies in 26 countries across Europe, the Americas, Asia-

Pacific, the Middle East and Africa. The majority of participants

were chief digital officers (CDOs) or other senior executives

with top-level responsibility in their company for industry 4.0

strategy and activity. The territory findings report was based on

interviews with 50 plus executives in India.


outside the boundaries of your workforce allows customers

to be exposed to your brand in a whole new way. Digital

campaigns and targeted marketing improve customer

satisfaction and increase brand awareness, positively

impacting sales. Digital advancement also allows

manufacturing corporations to improve business operations

that directly impact customers, such as offering customer-

specific solutions and, overall, improving customer

satisfaction.

OPTIMIZED WORKER OPERATIONS &

INCREASED PRODUCTIVITY

A digital strategy can help streamline processes in the

workplace, creating an optimized work environment that

flows more efficiently and allows employees to do their jobs

more easily. Technologies such as factory virtualization,

online paperwork, digital planning and processing tools,

remote communication software, and online collaboration

allow employees to be more productive on the floor and in the

office.

ACCESS TO GLOBAL MARKETS

Utilizing digitization of supply chain management allows

manufacturers to become competitive in the global market.

When a supply chain management system is digitized, real-

time analytics, virtualization of the supply chain, online

order tracking, and efficient material flows all occur, giving

the manufacturer a leg up in a globally competitive market.

Also, enabling a digital supply chain allows for the

opportunity to outsource certain areas of the process,

integrate external suppliers, as well as digitally check

product quality in real-time. These benefits put the

manufacturer in an key competitive position.

CUSTOMER ENGAGEMENT

Digitalization makes it possible to link customers closer to

the company and engage them in the development and test of

new products.

DISADVANTAGES OF DIGITALISATION

STRATEGY

SCARCE MANAGEMENT RESOURCES

Scarce management resources characterize most of the small

manufacturers, partly because the management – besides

being manager – is also engaged in the day to day operational

tasks. Often it keeps small companies from digital

advancement because it is time consuming to find the right

technological solution and customize it in accordance with

the specific needs companies have.

CAPITAL AND HIGH MARKET PRICES

Outcomes of digital innovation are always uncertain and

require significant investments in developing, testing and

marketing of new intelligent products and services.

Implementing new technologies is costly and mostly prices

on technology are the same to all companies no matter their

size. SMEs often perceive prices as disproportionately high

compared to the needs of the company. This makes

manufacturers more risk-averse and banks more reluctant to

grant loans for technology investments.

LACK OF ICT-SKILLS AND LACK OF ACCESS

TO INDEPENDENT COUNSELING SERVICES

Many SMEs lack ICT-skills, and find it difficult to identify

and access specific needs for new investments in

digitalization technologies. Furthermore, managers of small

manufacturers often have limited knowledge about the

market for digital and automated technology. Hence, they

find it difficult to navigate in the market for ICT-counseling

services.

ACCESS TO CUSTOMIZED SOLUTIONS

Small manufacturers often produce in small batches and

experience shifting orders. This places heavy demands on the

flexibility of automated solutions, such as industrial robots.

Furthermore, it makes it difficult to find technological

solutions that are both easy to program and easy to customize

according to different parts of the production.

ACCESS TO DATA AND DATA SECURITY

The connection of internal and external data contains

substantial business opportunities. But regularly digital

products and new digital business models are associated with

risks of leakage, hacking and abuse. To avoid this, companies

that experiment with innovative use of data are obliged to

make substantial investments in monitoring and safety

systems.

MATCHMAKING AND ACCESS TO

PROTOTYPING FACILITIES

As core competencies of manufacturers typically lie within

“non-digital” technical areas, they commonly lack certain

forms of expert knowledge, e.g. within software

development. In addition, only few companies have access to

prototyping facilities (e.g. 3D printing) where they can test

and customise new products in accordance with customer

feedback.

INDUSTRY 4.0

India has been gearing up for Industry 4.0, outshining


another industrial revolution. Industry 4.0, is the current

trend of automation and data exchange in manufacturing

technologies.

The fourth wave of technological advancement: the rise of

new digital industrial technology known as Industry 4.0, a

transformation that is powered by nine foundational

technology advances. In this transformation, sensors,

machines, work pieces, and IT systems are connected along

the value chain beyond a single enterprise. These connected

systems interact with one another using standard Internet-

based protocols and analyze data to predict failure, configure

themselves, and adapt to changes. Industry 4.0 makes it

possible to gather and analyze data across machines,

enabling faster, more flexible, and more efficient processes

to produce higher-quality goods at reduced costs. This in turn

increases manufacturing productivity, shift economics,

fosters industrial growth, and modifies the profile of the

workforce—ultimately changing the competitiveness of

companies and regions.

Many of the nine advances in technology that form the

foundation for Industry 4.0 transforms production: isolated,

optimized cells comes together as a fully integrated,

automated, and optimized production flow, leading to greater

efficiencies and changing traditional production

re la t ionships among suppl ie rs , p roducers , and

customers—as well as between human and machine.

BIG DATA

It is used to describe the collection of large and potentially

complex data sets containing both structured and

unstructured data into commonly accessible data sets. Big

data has the potential to aggregate a large number of

transactional or task-oriented data sets into a single

ubiquitous access point where behavioral and statistical

analysis techniques can be applied to uncover new

behavioural patterns and market segments (Demirkan et al.

2015).

AUTONOMOUS ROBOTS

Robots interact with one another and work safely side by side

with humans and learn from them. These robots cost less and

have a greater range of capabilities than those used in

manufacturing today.

SIMULATION

Simulations are being used extensively in plant operations as

well. The simulations leverage real-time data to mirror the

physical world in a virtual model, which include machines,

products, and humans. This allows operators to test and

optimize the machine settings for the next product in line in

the virtual world before the physical changeover, thereby

driving down machine setup times and increasing quality.

SYSTEM INTEGRATION

With Industry 4.0, companies, departments, functions, and

capabilities become much more cohesive, as cross-company,

universal data-integration networks evolve and enable truly

automated value chains.

INTERNET OF THINGS

Wi t h t h e I n d u s t r i a l I n t e r n e t o f T h i n g s , m o r e

devices—sometimes including even unfinished products are

enriched with embedded computing and connected using

standard technologies allowing field devices to

communicate and interact both with one another and with

more centralized controllers. It also decentralizes analytics

and decision making, enabling real-time responses. It is the

Internet of the future, a global network in which billions of

devices can be heterogeneously interconnected to exchange

data and interact to extend their functions beyond the

physical world and reach common goals without direct

human intervention (Li, Da Xu, and Zhao 2015; Evans and

Annunziata 2012; Atzori, Iera and Morabito 2010).

CYBER SECURITY

Cyber security brings a broad variety of connectivity

advantages (Colombo et al., 2014) and risks with them.

CLOUD COMPUTING

Cloud computing: allows ubiquitous access to a shared pool

of computing re-sources – such as servers, storages and

operating systems – that can be convenient, configured and

provisioned on-demand, with minimal management effort

Figure 3 Digitalisation Reshaping Industries

Source: Boston Consulting

INTERNETOF THINGS

CYBERSECURITY

AUGMENTEDREALITY

BIO DATACLOUD COMPUTING

SYSTEMINTEGRATOIN

SIMULATION ADDITIVEMANUFACTURING

AUTONOMOUSROBOTS


(Mell and Grance 2010; Arockiam, Monikandan and

Parthasarathy 2011). The performance of cloud technologies

improves achieving reaction times of just several

milliseconds. As a result, machine data and functionality can

be deployed to the cloud, enabling more data-driven services

for production systems. Even systems that monitor and

control processes have become cloud based.

ADDITIVE MANUFACTURING

Companies have just begun to adopt additive manufacturing,

such as 3-D printing, which they use mostly to prototype and

produce individual components. With Industry 4.0, these

additive-manufacturing methods are widely being used to

produce small batches of customized products that offer

construction advantages, such as complex, lightweight

designs. High-performance, decentralized additive

manufacturing systems reduces transport distances and stock

on hand. Additive manufacturing, also referred to as 3D-

Printing, is a fabrication technique involving the progressive

deposition of material onto a substrate, layer by layer. Such a

technology enables the creation of high-complexity parts,

and thus it is widely employed in economic sectors that either

require personal ised goods or geometry-dr iven

performances (Conner, et al., 2014).

AUGMENTED REALITY

These systems support a variety of services, such as selecting

parts in a warehouse and sending repair instructions over

mobile devices. These systems are currently in their infancy,

but in the future, companies will make much broader use of

augmented reality to provide workers with real-time

information to improve decision making and work

procedures.

ADVANTAGES OF INDUSTRY 4.0

Reduced operational costs

With increased digitalization and more technological

devices, even unfinished products can be enriched with

embedded computing and connected using advanced

technologies. This allows field devices to communicate with

each other and enables significant improvements in

efficiency in the factory.

Increased productivity-

Industry 4.0 presents an opportunity for manufacturers to

implement the integration of smart materials and equipments

that can diagnose and fix itself which helps streamline

processes, makes more versatile production decisions and

invariably increases a company's profitability.

· Increasesd customer satisfaction-

Industry 4.0 creates the ability for manufacturing companies

to personalize a product to an individual's consumer

requirement whilst still employing mass production

techniques.

DISADVANTAGES OF INDUSTRY 4.0

Fall in low skilled jobs

Use of new technologies in industrial production means that

a majority of jobs require digital competencies and other

technical skills. Moreover automation results in manual job

functions are replaced by machines. As more jobs are

automated and done by machines or robots, a significant

share of low skilled jobs will disappear.

Complex

The approach is Top to bottom; leaders must drive the

revolution and should be fluent with the open source

software, cyber physical systems or cloud solutions. For

managers not known to such systems, industry 4.0 is

complex to adopt.

Lack of Competence

Industry 4.0 competence needs to be developed in all areas of

production and business related processes. As all levels of

management come under the roof of industry 4.0, in such

cases, competence is required from all the employees and

labourers which lacks at some point.

Lack of communication

The next point is the change in the working culture. In a

connected Industry before machines are able to talk to

machines, the right people need to talk to each other. Only an

effective collaboration of IT-guys, technologists and other

people can deliver the right solution. There has to be a right

flow of communication from the top management to the

lower management of the company. Lack of communication

often leads to misleading beliefs.

Expensive and Costly

Industry 4.0 requires huge amount of capital for all types of

the new digital technologies for their business models.

Change in digital technologies

The new digital technologies are radically changing the way

services can be delivered. In such a case their adoption is

crucial for manufacturers to move towards more service-

based business models.


CONCLUSION

Today, most companies are either thinking about or pressing

ahead with digital transformation initiatives. Digitalization

might represent a window of opportunities for a much better

manufacturing performance than seen during the past two

decades. There is a huge potential for further digitalisation in

Indian manufacturing, hence transforming increased

digitalisation into higher productivity and better

competitiveness.

Moreover, increased digitalisation is important to stay

competitive within new business models (servitization, data

driven business models, etc.) and new types of products and

production models (Internet-of things, 3D-printing, etc.).

Thus, effective transmission of new digital technologies will

also pave the way for more effective ways to meet customer

demands.

The report concludes that several barriers to digitalisation in

the manufacturing industry exist, and that these barriers are

common to mostly all SME's.

There is a need to understand the current limitations and

possibilities. To fully realize the benefits of digitalization, the

government and enterprises recognize the need the need to

create the right ecosystem requiring huge investments in

infrastructure. But, investment alone is unlikely to usher in

the digital transformation our country aspires. Neither can

the government alone steer this transformation at the

required pace. Co-creation by manufacturing industry and

the government can create an ecosystem by fostering digital

market places, digital sourcing, digital governance and the

creation of truly digital enterprises.

In the last few years, the country has seen positive steps in

drafting appropriate policies that foster a technology and

knowledge-driven society. The Digital India initiative aims

to deliver good governance by synchronizing the work done

by Central and state governments. In 2015, the government

unveiled the 'GI Cloud' and IOT Policies which hinge on the

use of ICT – enabled services to stimulate growth in

manufacturing and digital enablement. To truly capture new

growth in manufacturing and from the industrial Internet of

Things (IOT), should follow three approaches: boost

revenues by increasing production, create new product-

service hybrid business models and exploit intelligent

technologies to fuel innovation and transform their

workforce.

However, the main limitation of this research is rooted in the

lack of real world cases in the area of Digitalisation in

manufacturing which makes it hard to assess the situation

fully. However, we see a significant opportunity for

researchers to speculate and spread the possibilities of

improvement to the industrial managers that they become

aware of the potential for investments and improvements

through this novel digital manufacturing technology.

REFERENCES

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Kfw Research



ABSTRACT

Udaipur city, over the years has become quite a fertile ground as a four wheeler market; more so, after it set foot on

becoming a smart city. Cleaner, wider roads, growing consumerism, growing trade with the incoming of multiple brands in

the city and the presence of almost all brands of car manufacturers has led to an increase in number of car owners and

potential four wheeler customers in Udaipur. The number of registered cars in Udaipur city has increased from 2017 in the

year 2002-03 to 6450 in the year 2015-16, approximately at a rate of 219%. Almost all major brands of car manufacturers

have their showrooms in Udaipur including Tata, Hyundai, Maruti Suzuki, Ford, Toyota, Chevrolet, Honda, Mahindra,

Nissan, Datsun, Audi, Skoda, and Renault and recently BMW has also inaugurated its showroom in the city. The present

study seeks to study the consumer behaviour in respect to the marketing mix of four wheelers and study the perception of the

dealers of four wheelers, towards their marketing mix and assess the degree of integrity between the 4c's of four wheeler

marketing and its level of success in satisfying the consumers in the in Udaipur city. For this purpose the correlation and

multiple regressions analysis is being used. The results have shown the variables for which the positive and significant

correlation were found between dealers and customers and the variables behind the purchase of the four wheelers in the

Udaipur city.

Keywords : Consumer Behaviour, Four wheeler, Marketing Mix, Car Manufacturers

INTRODUCTION

The Indian auto industry is one of the largest in the world.

The industry accounts for 7.1 per cent of the country's Gross

Domestic Product (GDP). The Two Wheelers segment with

81 per cent market share is the leader of the Indian

Automobile market owing to a growing middle class and a

young population. Moreover, the growing interest of the

companies in exploring the rural markets further aided the

growth of the sector. The overall Passenger Vehicle (PV)

segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export

growth expectations for the near future. In April-March

2016, overall automobile exports grew by 1.91 per cent. PV,

Commercial Vehicles (CV), and Two Wheelers (2W)

registered a growth of 5.24 per cent, 16.97 per cent, and 0.97

per cent respectively in April-March 2016 over April-March

2015.* In addition, several initiatives by the Government of

India and the major automobile players in the Indian market

are expected to make India a leader in the 2W and Four

Wheeler (4W) market in the world by 2020.

The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03

per cent and 8.29 per cent respectively, during the period

April-January 2017. In order to keep up with the growing

demand, several auto makers have started investing heavily

in various segments of the industry during the last few

months. The industry has attracted Foreign Direct

Investment (FDI) worth US$ 15.79 billion during the period

April 2000 to September 2016, according to data released by

Department of Industrial Policy and Promotion (DIPP).

India's automotive industry is one of the most competitive in

the world. It does not cover 100 per cent of technology or

components required to make a car but it is giving a good 97

per cent. Leading auto maker Maruti Suzuki expects Indian

passenger car market to reach four million units by 2020, up

from 1.97 million units in 2014-15.

Buying a car was chosen for the study context for several

reasons. First, buying a new car is an important decision for

most consumers. Consumers' perceived risk and uncertainty

are likely to be relatively high. Prior research suggests that,

when faced with performance or quality uncertainty,

consumers are more likely to use price as a cue in forming

performance expectations (Urbany et al., 1997). In addition,

relatively high product prices enhance the likelihood that

perceived fairness in marketing mix design may be an

important issue. Therefore, this context provides us with an

opportunity to examine the influence of price fairness

EXPLORING FOCUS AREA OF CAR DEALERS AND

CONSUMERS REGARDING 4C'S

Shirin Ruhi QureshiFaculty of Commerce, MLSU, Udaipur

perceptions on satisfaction judgments. Second, an

automobile purchase is a complex process, involving price

negotiation, interaction with service people, selection of

different option packages for the car, signing a purchase

contract, as well as the car delivery process. The purchase

process usually is made up of a sequence of clearly

distinguishable individual episodes typically occurring in a

similar order for most auto buyers. These different events

provide an opportunity to separate consumers' satisfactions

with different encounters within the entire purchase

transaction procedure.

Udaipur city, over the years has become quite a fertile ground

as a four wheeler market; more so, after it set foot on

becoming a smart city. Cleaner, wider roads, growing

consumerism, growing trade with the incoming of multiple

brands in the city and the presence of almost all brands of car

manufacturers has led to an increase in number of car owners

and potential four wheeler customers in Udaipur. The

number of registered cars in Udaipur city has increased from

2017 in the year 2002-03 to 6450 in the year 2015-16,

approximately at a rate of 219%. Almost all major brands of

car manufacturers have their showrooms in Udaipur- Tata,

Hyundai, Maruti Suzuki, Ford, Toyota, Chevrolet, Honda,

Mahindra, Nissan, Datsun, Audi, Skoda, and Renault and

recently BMW has also inaugurated its showroom in the city.

Hence this provided scope to study the current prevailing

potentialities of the four wheeler market, through a study of

the consumer and dealer behaviour in the city. The present

study seeks to study the consumer behaviour in respect to the

marketing mix of four wheelers in Udaipur city. In addition it

seeks to study the perception of the dealers of four wheelers,

towards their marketing mix and assess the degree of

integrity between the 4c's of four wheeler marketing and its

level of success in satisfying the consumers in the city.

Though consumer behaviour studies seem to be age-old and

repetitive in nature, but it is the very fact that one cannot

apply the rule of thumb on human nature. It requires

continuous monitoring and gauging. Reviews show that such

a study has not been conducted in the city of Udaipur. So this

study will provide an insight into the mechanisms of the four-

wheeler market of the city. The study will attempt to

elucidate the elements of marketing mix being used by the

dealers in the city and how is it being practiced in terms of

4c's. The study will help to understand how do the local

demographics of a place affect the marketing mix and how do

the dealers tune their perceptions to the preferences of the

consumers living in the city

THE OBJECTIVES OF THIS PAPER ARE AS UNDER:

1. To study the factors influencing the perceptions of

dealers and buyers of four-wheelers.

2. To assess the inter-relationship in dealers' and buyers'

perception about (4cs) with respect to four-wheeler

marketing.


Kumar (2015) researched into the marketing mix of four

wheeler dealers in Himachal Pradesh, to know the Impact of

Promotional Activities, After Sale Services, Mileage and

Resale Value on the Purchase Decision of four wheelers. It

used a well-defined multi-stage sampling technique to

collect a sample of 1000 consumers, of possibly all major

brands of four-wheelers across Himachal Pradesh and

covered all demographic variables to design the sample.

Using chi-square method for data analysis the research

depicted that promotional activities, after sale services,

mileage and resale value highly affects the purchase decision

of consumer.

Rana and Lokhande (2015) studied the consumer

preferences and attitude towards passenger cars of Maruti

Suzuki and Hyundai Motors in Marathwada region of

Maharashtra. Based on a sample of 500 consumers, collected

through convenience sampling, the study compared the

prices and consumer satisfaction of the auto products of

Maruti and Hyundai companies. It was found that, as far as

Maruti vehicles are concerned, the respondent preferred

Maruti cars on vital parameters like fuel efficiency, better

after sales service, comfort and convenience, exterior,

availability of spare parts .In case of Hyundai Motors it was

noticed that, the respondents preferred Hyundai cars because

of comfort and convenience, interior, exterior, fuel

efficiency. This study too reveals consumer inclination

towards parameters like fuel efficiency, comfort and

convenience, price and well-integrated after-sale service

strategy of the dealer.

Doshi and Parmar (2016) surveyed which factors influence

buyer's decision while purchasing hatchback cars in

Saurashtra (Gujarat). The purpose of this study was to

identify the components which influencing consumers brand

preference for hatchback cars in Saurashtra, Gujarat region.

The analysis report shows that majority of customers in this

region preference is towards Maruti Suzuki brand in

hatchback models. Implementing random sampling

technique, the sample data and information have been

collected from 200 consumers through online structured

questionnaire. In order to understand the behaviour aspect of

consumer for hatchback cars and the brand preference the


frequency and percentage analysis have been used.

Exploratory Factor Analysis shows safety, performance,

aesthetic and value are positively influencing the consumer's

overall satisfaction for hatchback cars. Therefore, hatchback

car manufactures need to focus on value added activities such

as consumers have better perception for the quality of brand,

features and facilities.

Lakshmi and Suryadarshini (2016), revolved around, finding

the preferences of households in Udamalpet, for light

vehicles. It explained that, considering the increase in road

usage, traffic congestion and accidents, households showed

greater preference towards light vehicles. The study attempts

to identify the order of preference for light vehicles, most

influencing factor leading to the purchase of light vehicles,

frequency of usage and its impact on environment. Primary

data has been collected adopting structured questionnaire

from a sample of 125 respondents. Statistical computations

were made using percentage analyses, five point scaling

technique (highest scale was assigned the highest score and

lowest scale was assigned the lowest score), rank analysis,

chi-square test and regression analyses. Analyses of the

preference for light vehicles among households revealed

that, brand, look/style and comfort influenced purchase of

light vehicles. Motor cycle was the most preferred vehicle as

the mean score was 4.74 in the 6 point scale. More than half

of the households had more than one type of light vehicle.

Convenience in mobility, greater mileage and moreover ease

of purchase, explains why every household owns at least one

light vehicle, whereas owning a car was a major family

decision.

Vervaeke & Calabrese (2015) have shown that the abilities of

the automotive industry to design new eco-friendly vehicles

(Beaume and Midler, 2009; Calabrese, 2012; Freyssenet

2009, 2011). Experiments as Bluecar and Autolib in Paris are

giving signs that certain projects are oriented toward

sustainable targets. The Bluecar and Autolib, an electric car

sharing system, is the outgrowth of an historical process.

Instead of studying this system of mobility as an innovation

in its final state, this article analyses this sharing system as a

product service process (Manzini and Vezzoli, 2003). This

paper discusses the issue of industrial design in the product

development process for the automotive sector. Then it

presents some iconic electric concept cars and the first trial

rental sharing systems. Finally, the Bluecar and the Autolib

electric car sharing system illustrate how the activities of the

industrial designers were involved in the development

process that ended in a new product and service.

Gautier & Zenou (2010) have shown that how initial wealth

differences between low-skilled minorities and white

workers can generate differences in their labor-market

outcomes. This even occurs in the absence of a taste for

discrimination against ethnic minorities or exogenous

differences in distance to jobs. Because of the initial wealth

difference, minorities cannot afford to buy a car while whites

can. Car ownership allows whites to reach more jobs per unit

of time, which gives them a better bargaining position in the

labor market. As a result, in equilibrium, ethnic minorities

end up with both higher unemployment rates and lower

wages than whites. Furthermore, we also show that it takes

more time for minorities to reach their jobs even though they

travel less miles when employed. Those predictions are

consistent with the data. Better access to capital markets or

better public transportation will reduce the differences in

labor-market outcomes.

Boll (2014) focused a ten-month ethnography of a tax audit

process led by the Danish Tax and Customs Administration.

The tax audit concerns a number of shady car dealings from

which taxable income is not reported. This article focuses on

the process whereby the tax administration succeeds in

making some of these car dealings visible. This article draws

inspiration from interpretative tax studies that consider

taxation as an organisational, institutional, social and cultural

phenomenon. Complementing those studies' approaches, the

present study draws both on Latour's concept of the

oligopticon and on Foucault's notion of the panopticon. The

analysis shows that tax inspectors produce oligoptic and

panoptic visions when they account for taxpayers' economic

activities and that tax inspectors' visions are received

differently by the represented taxpayers. Some taxpayers fall

out of sight, whereas others are highly visible and are

interrogated in detail. Using the concepts of the oligopticon

and the panopticon to analyse the tax audit process is

significant for interpretative tax and accounting studies,

because this theoretical approach represents an original

method of conceptualising taxation in practice and the work

implied in tax administration. Furthermore, due to its

detailed ethnography of the tax audit process, this study

makes a significant methodological contribution.

Zhan et.al, (2013) revealed that safe driving in older

adulthood depends not only on health and driving ability, but

also on the driving environment itself, including the type of

vehicle. However, little is known about how safety figures

into the older driver's vehicle selection criteria and how it

ranks among other criteria, such as price and comfort. For

this purpose, six focus groups of older male and female

drivers (n = 33) aged 70–87 were conducted in two Canadian


cities to explore vehicle purchasing decisions and the

contribution of safety in this decision. Themes emerged from

the data in these categories: vehicle features that keep them

feeling safe, advanced vehicular technologies, factors that

influence their car buying decisions, and resources that

inform this decision. Results indicate older drivers have gaps

with respect to their knowledge of safety features and do not

prioritize safety at the time of vehicle purchase. To maximize

the awareness and uptake of safety innovations, older

consumers would benefit from a vehicle design rating system

that highlights safety as well as other features to help ensure

that the vehicle purchased fits their lifestyle and needs.

Phang et.al, (1996) examined the policy processes behind

Singapore's car quotas. The policy, when filtered through the

market mechanism, had a number of unintended

consequences. The public's unhappiness with certain

features and 'loopholes' of the system resulted in many

changes to the rules. The effects of recent measures to curb

speculation on quota premiums are evaluated. Problems with

Singapore's Weekend Car Scheme are also discussed. The

lesson for transport policy makers elsewhere is that in

attempting to deal with the road congestion problem through

car ownership policies, an asset market for vehicles should be

taken into account.

Larson et.al, (2014) revealed that as electric vehicles (EVs)

become more readily available, sales will depend on

consumers' interest and understanding. A survey of consumer

attitudes on electric cars was conducted in Manitoba from

late 2011 to early 2012. It utilizes two price assessment

methods. The van Westendorp price sensitivity method

(PSM) shows the acceptable price range for EVs to be

$22,000–27,500. This range closely matches average price

range for sales of conventional cars during the same period.

The willingness-to-pay method reveals consumers are

unwilling to pay large premiums for EVs, even when given

information on future fuel savings. A consumer group with

experience or exposure to EVs is somewhat different. Nearly

25% of these people are willing to pay a premium of up to

$10,000. Different interpretations can be drawn from these

responses, calling for further research. An apparent policy

opportunity involves consumer education to enhance

knowledge and facilitate EV purchase decisions. Survey

results also support the hypothesis that EV rollout has

focused too much on technology, and not enough on

consumers.

Lines et.al, (2008) proposed a hydrogen rental-car strategy

for transitioning from fleets to consumers in Orlando,

Florida. Orlando is the No. 1 tourist destination in the United

States, but most car renters visit only a few destinations. A

hydrogen rental-car fleet serving this cluster of destinations

could provide visitors with a positive first exposure to

hydrogen vehicles with minimal commitment, creating

hydrogen advocates and potential early adopters in their

home regions. The rental-car business combines the

logistical advantages of a fleet operation with outreach to

many consumers. A hydrogen-powered rental-car fleet at the

Orlando International Airport could provide guaranteed

demand, supporting an initial rollout of refueling stations.

We surveyed 435 rental-car customers in Orlando to

understand the idea from the consumer point of view. We

analyzed the bundles of destinations visited by the

respondents and found that only three stations—an existing

station at the Orlando International Airport plus new stations

near the theme parks and in downtown Orlando scould serve

64% of renters. Half of all respondents indicated a

willingness to pay more to rent a hydrogen car, and this

subset of customers ranked the ability to use a pollution-free

car as the most important factor in their decision. We then

identify the major barriers to a hydrogen rental-car business

model from the corporate point of view and propose a

number of potential solutions. The most significant barrier

appears to be the fleet purchase costs, which we think can be

offset by the benefits of free media coverage and contained

by beginning with converted internal-combustion vehicles

and converting eventually to fuel-cell vehicles. We also

outline possible synergies with NASA, Disney, refueling

stations, manufacturers and state government.

Sprei & Karlsson (2013) presented their views as

technological developments that increase energy efficiency

result in net energy-saving benefits, provided the increased

efficiency is not offset by enhanced consumer amenities.

This paper analyzes the technology development/consumer

amenities trade-off for new cars sold in Sweden between

1975 and 2010. We combine lessons learned from the

policies in place and interviews with key actors in the car-

purchasing process with statistical modeling of trends in

vehicle attributes and technological development. Until

2007, consumer amenities were continuously enhanced,

offsetting most of the efficiency gains of technological

development; there was no strong policy push toward energy

efficiency. In recent years, two major shifts have occurred.

First, there has been a shift in the majority of new cars sold,

from gasoline-powered engines to diesel engines. Flex-fuel

vehicles have also contributed to a decline in the sales-share

of pure gasoline engines. The observed shift of fuels,

especially to flex-fuels, has been encouraged by policies.

Second, after 2007 there have been major technological


improvements, while attributes related to consumer

amenities have remained flat, reversing the trends so that

77% of the technological development resulted in actual

reduction of specific fuel consumption. EU targets, tax

reforms, and consumer awareness have contributed to this

trend change.


The research methodology accounts for this research work

includes the following points:

Data Source: The data for the current research paper was

collected by using questionnaire to obtain responses from the

customers using cars of 14 companies i.e., Tata, Hyundai,

Maruti Suzuki, Ford, Toyota, Chevrolet, Honda, Mahindra,

Nissan, Datsun, Audi, Skoda, and Renault and BMW

Company in Udaipur city.

Type of sample: The sample includes 250 customers and 20

dealers residing in the geographical of Udaipur district of

Rajasthan state in India

Universe of study: The total numbers of car owners and

dealers in Udaipur are included in the universe of the current

study but due to various limitations sampling method was

used to conduct current study.

Sample size: For the purpose of current study a health

sample of 250 car owners and 20 car dealers were selected on

the basis of the convenient sampling method.

Data analysis Tools: The statistical tools & techniques used

during the study include correlation analysis and multiple

regressions regarding perception of car buyers related with

4C's were used.

Table-1: Description of customers

Criteria Values Percent Criteria Values Percent

Age < 25 years 53.6 Gender Male 58.4

25 -35 years 41.6 Female 41.6

35 -45 years 4.8 Occupation Private / Govt 53.2

45 and above Nil Business 46.8

Agriculture Nil

Education

Undergraduate or

lower

69.6 Marital

Status Single 42.9

Master’s 30.4 Married 57.1

Your

Location

Type

Urban 42.8 Family

Income 1-2 LPA 17.2

Rural 33.2 2-5 LPA 22.0

Semi -urban 24 >5 LPA 60.8

DATA ANALYSIS

Inter –Relationship among 4Cs dimensions between Customers and dealers

Dimension of 4Cs (Correlation)

Sig.

I always search for uniqueness of design

I always prefer buying well - known brands

A well -known brand means good quality

I always search for quality product

I make a special effort to choose the very best quality product

I always prefer to purchase latest model

I consider price rst

I compare prices to nd the lower - priced product

I associate cost with the quality of car

0.000

0.000

0.527

0.038

0.000

0.013

0.014

0.973

0.000

0.749

0.856

0.150

0.467

0.787

0.546

0.540

0.008

0.800

R -Value



I give importance to Cost of Service 0.936 0.000 There are many easy car nancing schemes 0.655 0.002 Quick delivery of cars is desired 0.840 0.000 Dealer are providing company authorized service center 0.608 0.004 Car insurance service is easily available 0.702 0.001 Only motive is of targeting people to buy the car 0.724 0.000 Motive is to spread awareness of the car. 0.917 0.000 Motive is of showcasing the functional Specications of the car. 0.659 0.002 Show that this car is for people like you. 0.659 0.002 Show that car is perfect for my lifestyle 0.697 0.001

To analyse the above hypothesis multiple regression

analysis for all 4 parts of Product related attributes, Price

related attributes, Place/availability related attributes,

Promotion related attributes and finally on After Sales

services were conducted separately and the result were

provided as under:

Descriptive Statistics

Variables 4C’s Mean Std. Deviation N

Uniqueness_design_C

Customer

Value

3.2960 .95710 250

Buying_brands_C 3.9440 1.43566 250

brand_quality_C 4.3240 .46894 250

Quality_product_C 4.3240 .46894 250

effort_to_choose_C 4.6480 .47855 250

Latest_model_C 4.3240 .46894 250

price_rst_C

Cost

4.3520 .47855 250

Compare_prices_C 4.3520 .47855 250

cost_with_quality_C 3.6200 1.26253 250

Cost_Service_C 4.0000 .80660 250

Financing_schemes_C 3.9280 .42371 250

Quick_delivery_C

Convenience

2.3800 1.26253 250

authorized_service_C 3.6760 1.23333 250

Car_insurance_C 3.0280 1.40682 250

Targeting_people_C

Communication

2.6480 .93788 250

spread_awareness_C 3.0280 1.40682 250

Specications_C 3.6760 .46894 250

Car_forYou_C 3.6480 .47855 250

Prefered_lifestyle_C 2.6560 .91048 250


Table-4: Multiple Regression analysis

Perception from Variable Constant/beta Value

Adjusted r square

ANOVA Sig.

Customer Value

(Constant)

2.610

.379

152.953

.000a

Uniqueness_design_C

.502 Cost (Constant)

8.632

.379

152.953

.000a

price_rst_C

-1.004

Convenience

(Constant)

4.704

.377

76.380

.000b

Quick_delivery_C

-.434

authorized_service_C

.161

Communication (Constant) .603 .379 152.95 .000a

Car_forYou_C 1.004

DISCUSSIONS AND CONCLUSION

Comfortable Family travel and Time saving with Luxury and

Social Status are the basic reasons behind the purchase of the

car for people residing at Udaipur. Further, the result shown

below clearly shows that there are different set of predictors

related with the perception of car owners for different 4 C's

including after sales services. Regression model resulted

from the data analysis of present a model with many

predictors. The Model is having good R2 Value that specifies

the factors identified can explain less percent but a healthy

percent of variance in training satisfaction, not only this the

overall model fit measure i.e., ANOVA is also significant and

thus the regression model is found to be fit for developing the

conclusion . Variables like A well-known brand means good

quality and I compare prices to find the lower-priced product

are now considered by all the respondents and having

significant correlation with the car buyers perception as

shown by the correlation analysis.

Further the variable I always search for uniqueness of design

(Uniqueness_design_C) is showing the Customer Value in

the satisfaction (adjusted r square value .379 and ANOVA

152.953, p<0.05), I compare prices to find the lower-priced

product (price_first_C) is showing the Cost in the

satisfaction adjusted r square value .379 and ANOVA

152.953, p<0.05), Quick delivery of cars is desired

(Quick_delivery_C) and Dealer are providing company

authorized service centre (authorized_service_C) are

showing the Convenience in the satisfaction adjusted r

square value .377 and ANOVA 76.380, p<0.05)and Show

that this car is for people like you (Car_forYou_C) is

showing the Communication in the satisfaction (adjusted r

square value .379 and ANOVA 152.95, p<0.05). This means

that as far as the cutomer values are concern their satisfaction

is based upon the variables like they always search for

uniqueness of design, they compare prices to find the lower-

priced product, Quick delivery of cars is desired and Dealer

are providing company authorized service centre with car is

for people like me. These variables must be considered by the

dealers and companies for marketing their car. Thus we can

say that the above results can be used by the companies for

the purpose of selling the car in the Udaipur city.

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ABSTRACT

The workplace is a complex and dynamic environment (entity) that consists of the physical space, structure, the technology,

the furniture, the social interaction, the actual work and practice, the culture and to bind all this together is the continuous

learning, both formal and informal that takes place. To face the challenges of the future and to keep pace with the rapid

demands and change continuous learning is critical. To make the workplace a potential learning environment the various

factors for informal learning need to be reviewed. This paper assesses the influence of physical factors on workplace

learning. A survey was conducted to examine the influence of physical factors like the necessity of conducive environment;

availability of spaces for gathering; Space consideration being a part of strategic planning; arrangement of people, office

and workstations so that frequency of Informal, chance contacts are increased to facilitate informal learning at the

workplace. Through the findings, it could be concluded that physical environmental factors collectively influence the

workplace learning. Theoretical and practical implications of the study and suggestions for future research are also

discussed.

Keywords : Workplace Learning, Informal Learning, Physical Workplace, Strategy, Physical Environment

INTRODUCTION

Many countries, organizations and managers are finding it

difficult to respond to the skill needs of industry and their

workforce in a time of increasing globalization, new

technology and changing patterns of work. The current

global financial, political and economic situation has

contributed to recognition of the need for recovery strategies

based on investment in skills development in an attempt to

improve product iv i ty, employment growth and

employability of the workforce through training and re-

training. A key strategy for achieving this is to promote

workplace learning, in the context of lifelong learning, to

ensure that workers' skills are constantly renewed and

adapted and thus ensure that they are equipped for a variety of

potential jobs.

The ILO's Human Resources Development Recommendation

No. 195 (2004) stresses that countries should “promote the

expansion of workplace learning and training”. Over recent

years, the use of the workplace as a centre of learning has been

transformed due to the growth of the knowledge economy, the

impact of new technology on productivity and the growing use

of high-performance work practices that are transforming the

ways in which work is organized.

Workplace learning is the amalgamation between the

learning process of the members and the environment of the

physical workplace. The physical environment is a facilitator

to learning at the workplace. It facilitates continuous learning

to share experiences and learning and to prepare people and

organizations for the need of the present and future. At the

workplace individuals and groups and communities meet

regularly, and these opportunities need to be exploited and

converted into learning activities, through a conducive

learning environment. (Illeris, 2004)

WORKPLACE LEARNING ACTIVITIES

AND HUMAN RESOURCE MANAGERS

A number of workplace learning environment factors

influence workplace learning and make it successful.

Facilitation by the management, interactions and sharing of

learning and best practices, between communities, groups

WELCOME TO THE WORKCAFE

Arthur FernandesResearch Scholar


Dr. Uttam KinangeProfessor and Dean


and individuals, effective and timely communication,

opportunities for learning, and the physical environment are

some of the factors that influence workplace learning

(Krauss & Guat, 2008)

To facilitate learning at the workplace between human

resource professionals, the necessary conditions need to be

created. This motivates in individual and team learning at the

workplace. (Lourenço, 2015)

Certain conditions will have a good chance to increase work

motivation and thereby effectiveness. Hence, members'

work motivation can be seen as a mediator in group

functioning. In our view, and following Kozlowski and Ilgen

(2006), who state that team learning, motivation, and

effectiveness are entwined, so the conditions that promote

team learning could play an important role in order to

increase work members' motivation and team effectiveness,

namely members' satisfaction with the team. (Lourenço,

2015)

PHYSICAL WORKPLACE ENVIRONMENT

FA C T O R S A S FA C I L I TAT O R S T O

INFORMAL WORKPLACE LEARNING

ACTIVITIES

Workplace learning has a broader project and potential to link

development of the individual with development of the

organization or business, through an emphasis on sustained

development and learning processes as well as learning

outcomes. If changes in society and economy have loosened

learning from the classroom, then the workplace is also more

than just a physical location. We can consider 'the workplace'

to be a physical location and shared meanings, ideas,

behaviors and attitudes – all of which help determine the

working environment and the network of formal and

informal relationships that feature the latter. These, place

learning at the centre of workplace: looking at work from the

viewpoint of its learning potential is fundamentally different

to looking at it simply in terms of competencies needed in

order to perform the job well. Learning needs to be viewed as

a natural characteristic of everyday work, and work itself is

seen as a rich source of learning facilitated by and effective

and right physical environment (Manuti, Pastore, Scardigno,

Giancaspro, &Morciano, 2015)

Various factors identified from previous research, and

included in the questionnaire are, Conducive Physical

workplace environment (Toole, 2001), Spaces for gathering

need to be available at a short notice (Bates & Hillage, 2005),

Space considerations should be a part of strategic planning

(Overton & Dixon, 2016), People, offices and workstations

need to be arranged so that informal, chance contacts are

frequent (Bates & Hillage, 2005). These factors were

investigated to identify the influence of physical factors on

the workplace learning.


Data of this study were gathered through a mail survey

approach. Respondents were Human Resource managers in

large and medium scale organizations in Karnataka. They were

selected because informal learning activities are compulsory to

develop and maintain their knowledge and skills in current and

future work roles (MIA, 2007). 150 (approximately 10% of the

population) respondents were randomly selected by database

which has around 1200 organizations in the category out of

these 106 were selected. The questionnaires were sent to their

correspondence addresses. The questionnaire consisted of six

items on the frequency of engagement informal learning

activities on the physical workplace environment. A Likert

scale ranging from 1 (strongly agree) to 5 (strongly disagree)

was used for the informal workplace learning environment and

activities items.

RESULTS

To investigate the influence of physical factors like the

necessity of conducive environment; availability of spaces

for gathering; Space consideration being a part of strategic

planning; arrangement of people, office and workstations so

that frequency of Informal, chance contacts are increased and

Infrastructure, that responses of 106 employees are

considered. The respondents rated statements regarding

physical factors on a scale of 1 to 5. The following table

presents the responses of all the respondents.

Conduc�ve Physical workplaceenvironment is necessary

Spaces for gathering need tobe available at a short no�ce

Spaces considera�ons shouldbe a part of strategic planning

Infrastructure influences thequality of workplace learning

People offices andworksta�ons need to be

contacts are frequent

Strongly Disagree

Disagree

Neither Agree nor Disagree

AgreeStrongly Agree

0 20 40 60 80 100

Percentage


The stacked bar chart clearly points out that no respondent

has marked disagreeing options. So it is safe to conclude that

physical factors like Conducive environment, Space for

gathering, Considerations of space, Frequent informal or

Chance contacts and Infrastructure have significant effect on

workplace learning.

Of all the responses, “Agree” seems to be most favored with

an average responses of 48.66% followed by Strongly agree

and Neutral. It can also be noted that at least 10% of the

respondents are Neutral on the subject.

Of the physical factors listed, Conducive environment seems

to be most favored with 96.2% of the respondents agreeing

on it. Conducive environment is followed by Infrastructure

(with 95.2% agreements), Space considerations (with 92.5%

agreements), Frequent chance contacts (with 84%

agreements) and Spaces for gathering (with 80.2%

agreements).

Since the frequency of disagreements in the above table is

zero, we could conclude that environment factors definitely

influence workplace learning. Further, a statistical

verification can be done using ANOVA. Since we have

established earlier that data measured on a Likert scale fails

Normality we may consider Nonparametric counterpart of

ANOVA, Friedman's test for k-samples. This test is used for

testing differences between two or more groups measured on

an ordinal scale based on average ratings and can also be used

in situations where Normality conditions fail. Following

tables present results of Friedman's test.

One can observe that the average response for all the

statements differ significantly. This could also be validated

by the fact that there is a significant difference between the

groups with the help of Chi-square test statistic. Hence, it

could be concluded that the physical environmental factors

collectively influence the workplace learning.

DISCUSSION AND CONCLUSION

The purpose of this study was to investigate the influence of

physical factors like the necessity of conducive environment;

availability of spaces for gathering, on informal workplace

learning; Space consideration being a part of strategic

planning; arrangement of people, office and workstations so

that frequency of Informal, chance contacts are increased and

Infrastructure. This research identified that human resource

managers recognize that the physical workplace

environment does make an impact on the workplace

learning. This finding is consistent with prior literature

(Toole, 2001; Lippman et al., 2010; Lohman, 2005)

The research findings indicate that there is the physical

workplace environment does influence the workplace

learning therefore it can be concluded that there is an

interaction that happens not only between communities,

groups and individuals, but also between these and the

physical factors. The physical environment needs to be a part

of the strategic planning of the organization for better

learning, and to create a learning organization and develop

organizational learning.

This research has several implications to theory and practice.

The theoretical implication of this research is that it develops

a greater understanding of the physical work environment

with relation to workplace learning. The practical

implication is information about the physical workplace

factors can be used by organizations and human resource

professionals to create a conducive work environment to

facilitate effective learning at the workplace.

This research is descriptive in nature and it is restricted to a

certain context and geographical area. Further research could

examine the extent to which the physical workplace factors

facilitate learning at the workplace and the influence of these

factors on the learning outcomes. Such research would

provide further conclusive empirical evidence on this and

improve the generalization ability of the findings.

REFERENCES

Bates, P., & Hillage, J. (2005). Learning at work:

strategies for widening adult participation in learning

below Level 2 via the workplace. research report.

Learning and Skills Development Agency.

Ranks

Statements MeanResponse.

Conducive Physical workplace environment

is necessary.3.55

Spaces for gathering need to be available at a

short notice.

Space considerations should be a part of

strategic planning.

People, ofces and workstations need to be

arranged so that informal, chance contacts

are frequent.

Infrastructure inuences the quality of

workplace learning.

2.35

3.00

2.74

3.36


Illeris, K. (2004). A model for learning in working life.

Journal of Workplace Learning, 16(8), 431–441.

http://doi.org/10.1108/13665620410566405

Krauss, S.E., & Guat, K.A. (2008). An Exploration of

Factors Influencing Workplace Learning Among Novice

Teachers in Malaysia. Human Resource Development

I n t e r n a t i o n a l , 1 1 ( 4 ) , 4 1 7 – 4 2 6 .

http://doi.org/10.1080/13678860802261660

Lippman, B. P. C., Architecture, J. C. J., York, N.,

Lippman, P. C., Lippman, B. P. C., Architecture, J. C. J.,

& York, N. (2010). Can the physical environment have an

impact on the learning environment ? New York, 6.

http://doi.org/10.1787/5km4g21wpwr1-en

Lohman, M. C. (2005). A survey of factors influencing

the engagement of two professional groups in informal

workplace learning activities. Human Resource

D e v e l o p m e n t Q u a r t e r l y, 1 6 ( 4 ) , 5 0 1 – 5 2 7 .

http://doi.org/10.1002/hrdq.1153

Lourenço, I. D. D. T. R. P. R. (2015). The Learning

Organization. The Learning Organization, 22(2), 1–30.

Retrieved from http://dx.doi.org/10.1108/TLO-10-2014-

0060

Manuti, A., Pastore, S., Scardigno, A.F., Giancaspro,

M.L., &Morciano, D. (2015). Formal and informal

learning in the workplace: A research review.

International Journal of Training and Development,

19(1), 1–17. http://doi.org/10.1111/ijtd.12044

Overton, L., & Dixon, G. (2016). Preparing for the Future

of Learning 2016 A Changing Perspective for L & D

Leaders, (April).

T h e I L O ' s H u m a n R e s o u r c e s D e v e l o p m e n t

Recommendation No. 195 (2004)

Toole, K. M. (2001). Learning through the physical

environment in the workplace. International Education

Journal, 2(1), 10–19.



ABSTRACT

In this paper we study the policy initiatives taken by RBI/GOI in building need based, strong multi-agency banking

infrastructure in India to provide the door step banking and para-banking services to masses in the country side and the

claim of Government of Pudhucherry in its State Level Bankers Committee (SLBC) in the year 2013 that the Union

Territory (UT) of Pudhucherry has achieved 100% (cent per cent households possessing bank accounts) Financial

Inclusion (FI1). We also study the policy initiatives and role in this achievement played by the Indian Bank, a nationalized

bank, as the RBI designated lead bank in the Union Territory of Pudhucherry to set the record of top position in the sphere of

FI at the All-India level. The CRISIL the oldest rating agency in India in its report on FI index based on RBI data (using

three parameters viz.; branch penetration, deposit penetration and credit penetration based on per lakh population) using

robust and transparent methodology on the scale of 1 to 100 (with 100 signaling that an entire population has access to

banking services), released by the then Finance Minister Mr. P. Chidambaram in 2011 revealed that one out of every two

Indians has a savings account, but only one in seven has access to bank loan. Further, the report states that the southern

region leads in FI with the score of 62.2. The western region comprising of Gujarat and Maharashtra stands second with a

score of 38.2 (however, behind the national average), followed by the northern region (37.1), eastern region (28.6), and

north-eastern region (28.5) with the All-India score at 40.1(compared to 35.4 in 2009), which the report termed as low.

Report also reveals that the number of savings accounts (624 million) is almost four times the number of loan account (160

million) and that 618 out of 632 districts reported an improvement in 2011 over 2009 in terms of FI index. Report found

Puducherry, Chandigarh and Kerala ranked top three states respectively in terms of FI. Among the bottom five states

includes Arunachal Pradesh, Chhattisgarh, Bihar, Nagaland, and Manipur, the lowest with a rating of 16.6. According to the

CRISIL report, four of the 10 most inclusive states and union territories are in the south with Puducherry on top. The

already efforts put in by SLBC Indian Bank and other banks in Puducherry were specifically highlighted by RBI in its

Annual Policy Statement for the year 2006-07 and advised other SLBC conveners in their States and UTs to identify at least

one district in their area for achieving 100% FI on the lines of the initiative taken in Puducherry. Finally, Paper also

examines the progress of financial inclusion under National Democratic Alliance (NDA) Government’s ambitious Jan-

Dhan Yojana, launched three years ago on 28-8-2014 which aims to bring the poor, downtrodden and

marginalized/excluded sections of the society under the ambit of mainstream banking system.

Keywords : Financial Inclusion, Banking Infrastructure, Union Territory.

INTRODUCTION

The Committee (2008) Headed by Dr. C. Rangarajan on

Financial Inclusion (FI) defines FI as the “process of

ensuring access to financial services and timely & adequate

credit where needed by vulnerable groups such as weaker

sections and low income groups at an affordable cost”. It

include reviewing basic retail financial services such as

cheque cashing, remittances, money orders, stored value

cards, short term loans, savings accounts and other services

that promote asset accumulation by individuals and financial

stability. Similarly, CRISIL Report (2011) states “FI is not

just about opening of savings bank account, it includes

creation of awareness about financial products and offering

of advice on money management and debt counseling”. For

the first time, the Eleventh Five Year Plan (2007-12)

INITIATIVES FOR FINANCIAL INCLUSION IN INDIA

1 FI is basically delivery of financial services at an affordable cost to vast sections of disadvantaged and low income groups Viz.;

Marginal/ Landless Farmers, Self Employed, Urban slum developers, Minorities/ Migrants, Social excluded groups, Senior

citizens, Women. Financial Services include: Savings, Credit, Insurance, Remittance Facilities, etc. merits of FI are: Reduction

in transactions costs to savers, Reduction in transactions costs to banks & Low risk cost, etc.

Dr. Dilip K. ChellaniAssistant Professor, Faculty of Commerce

The Maharaja Sayajirao University of Baroda, Vadodara

envisaged inclusive growth as a key objective as well as a

strategy for economic development. FI can therefore, be

very well called as 21st century banking. Its main aim is to

extend the banking and financial services to every person or

class of people, projects (activities in various sectors) and

places/parts (rural/semi urban or urban area) of the country.

According to 2011 Census of India, out of the total 121 crore

population, rural India populat ion is around 83.3 crores

(nearly 70%) with around 2/3rd of total rural population is

dependent upon agriculture as source of income and

livelihood. We have 6.27 lakh villages with 99.7% of total

rural population living there in. The population spread in

Indian villages is presented in the following table.

Thus, there are now only 1831 total number of villages in India with population more than 10000 persons. (Definition of rural area in banking business is a place with population up to 10000 persons.) The strong saving habit of people in India is such that even the relatively low income families tend to save about a third of their annual earnings. The rural savings to income ratio is much higher than that of the urban population. Further, at present we have an extensive banking infrastructure comprising of around 35000+ rural and semi-urban branches of commercial banks,

over 15000+ branches of Regional Rural Banks (RRBs), around 12000+ branches of District Central Co-operative Banks (DCCBs) and nearly 100000 Cooperatives Credit Societies (PACS) at the village level (There are also 4 lakhs+ Banking Correspondents (BC), Business Facilitators (BF) touch points). This translates into availability of 1 primary credit delivery outlet for around 5000 population or using a definition of a family (consisting of 5 members) we have 1 credit delivery outlet in rural area for every 1000 households. This is a remarkable and extensive work probably having no parallel in any other country in the world. Given the availability of huge banking infrastructure/ network the moot question is; “Are the financial service needs of the large number of rural people compre hensively

met by this network?” The position is none too impressive, going by the available data on the number of savings accounts and assuming that one person has only one account, on an All-India basis only 59 per cent of adult population in the country has bank account. Further, the extent of credit inclusion is even lower at 14 per cent of adult population. The un-banked population is higher in the North-Eastern and Eastern Regions as compared to other regions 2. The financially excluded sections largely comprises of marginal farmers, landless labourers, self-employed and unorganized sector enterprises, urban slum dwellers, migrants and others like socially excluded groups, senior citizens and women. It was therefore appropriate to consider the urgent need for financially including rural masses in the formal banking system for the faster growth of the Indian economy. FI requires huge efforts in understanding the needs of people living in rural areas. The financial education (financial literacy and financial counseling) and banking technology are two essential component of the FI. Also, in pursuit of the FI, there are many issues and challenges both on the access and affordability – the two pillars of the FI. In this Paper an attempt is made to study policy initiatives under RBI/GOI directed programmes and procedures in building need based, strong multi-agency banking structure to provide the door step banking and para-banking services to masses in the country side and the claim of Government of Pudhucherry in its State Level Bankers Committee (SLBC) in the year 2013 that the Union Territory (UT) of Pudhucherry has achieved 100% (cent per cent households possessing bank accounts) FI. We also study the policy initiatives of Indian Bank, the RBI designated lead bank in the Union Territory of Pudhucherry which set the record of top position in the sphere of FI at the All-India level. Why is FI important3? It is important simply because it is a necessary condition for sustaining equitable growth. FI will make it possible for Governments to make payment such as social security transfers, national rural employment guarantee programme wages into the bank accounts of beneficiaries through the electronic benefit transfer method. This will minimize transaction costs including leakages. The benefits at the macro level include are that FI provides an avenue for bringing the savings of the poor into the formal financial intermediation system and channel them into investment. Second, the large number of low cost deposits will offer banks an opportunity to reduce their dependence on bulk deposits and help them to better manage both liquidity risks and asset-liability mismatches.

2CRISIL Report, 2011.

3Financial Inclusion: Challenges and Opportunities. Remarks by Dr.

D. Subbarao, Governor, RBI at the Bankers’ Club in Kolkata on

December 9, 2009.

The population spread in villages

Population Size Villages

(in numbers)

Population

(in %)

More than 10000

5000 to 10000

2000 to 5000

1000 to 2000

500 to 1000

Less than 500

Total

1831

7145

46754

94658

136232

340380

627000

0.3

1.0

8.4

16.9

24.7

48.7

100


FINANCIAL INCLUSION – APPROACHES

FI refers to initiatives focused on expanding access to

banking and para-banking services for underserved

populations. Since 2006, RBI has adopted a planned and

structured approach to address the issues of FI. This includes

the institutionalization of BCs/BFs and use of ‘Brick and

Mortar’ structure with ‘Mouse and Click’ technology for

extending FI in geographically dispersed areas 4. In the

Budget Speech 2005-2006, Shri P. Chidambaram, the then

Honorable Union Minister of Finance quoted that, “the FI

provides business opportunity for the banks and financial

institutions at the bottom of the pyramid to expand the

volume of business”. RBI in its Annual Policy Statement for

the year 2005-06, while recognizing the concerns in regard to

the banking practices that tend to exclude rather than attract

vast sections of populations, urged banks to review their

existing practices to align them with the objectives of FI. The

then Governor, RBI, Dr. Y. V. Reddy, mooted the idea of

reaching the unreached and called upon in his special address

to Bankers in Pudhucherry on 21-11-2005 to take up a

‘National Pilot Project on FI (NPPFI) in the UT of

Pudhucherry for a period of 1 year from 1-1-2006. He also

called upon the State Level Bankers Convener (SLBC)

Indian Bank with young and visionary Dr. K.C. Chakrabarty

as Chairman and Managing Director, to put in place the

project. Indian Bank completed the FI process of providing

No-Frills Savings Bank account to all the households of

Mangalam village in the Union Territory of Puducherry.

Thus Mangalam village became the first village in the

country where in all the households were financially

included. To start with, Bank provided ‘No-Frills’ accounts.

As a next step small overdraft facilities were provided in the

savings bank accounts (OD/SB) in order to cater the account

holder’s general purpose or consumption needs, with an aim

to obtain the credit history for the future to sanction on easy

lines the enhanced line of credit accommodations. Those

who took up the income generation activities were provided

with General Credit Card (GCC) facility with a flexibility of

rollover. For the Self Help Groups (SHGs), instead of

giving loans based on exten t of savings, a line of credit with

simplified accounting procedures, giving flexibility to the

SHGs and ultimately to members of the group, was extended.

The efforts put in by SLBC Indian Bank and other banks in

Puducherry were specifically highlighted by RBI in its

Annual Policy Statement for the year 2006-07and advised

other SLBC conveners in their States and UTs to identify at

least one district in their area for achieving 100% FI on the

lines of the initiative taken in Puducherry. The process of FI

since nationalization of major commercial banks in 1969

can be classified into following three phases: During the first

phase (Period up to 1990) the planners and regulators

focused primarily on reorienting banks for faster rural

development including establishment of new rural banks

(RRBs) for financing the rural poor, geographical wide

spread of commercial bank branches (Under the branch

expansion policy initiatives from 9-11-1971) in rural areas,

establishment of Apex Bank on 5-7-1982 (National

Bank/NABARD) for the all-round development of rural

sector, provision of directed credit from 2-10-1980 under

the state sponsored programmes at the affordable terms and

priorities to the neglected sectors of the economy. Special

emphasis was laid for the first time under the 6th Five Year

Plan (1980-1985) on providing credit to weaker sections of

the society etc. Second phase (Period of post reform up to

2005) focused mainly on revitalising and strengthening the

banks and financial institutions as part of financial sector

reforms and put them on appropriate technology driven CBS

platform so as to meet their customers banking and financial

services needs comprehensively from distance. FI in this

phase was encouraged mainly by the introduction of

innovative SHG -bank linkage programme in the early 1990s

and technology driven Kisan Credit Cards (KCCs) for

providing any time ready credit facilities to farmers. The

SHG-Bank linkage programme was launched by NABARD

in 1992, with policy support from the RBI, to facilitate

collective decision making by the poor & needy and provide

them the ‘door step’ banking. Also, to facilitate the low

income groups both in urban and rural areas in opening bank

accounts the 'Know Your Customer' (KYC) procedure for

opening accounts with balances not exceeding Rs 50,000

was simplified etc. In the present third Phase (2005

onwards), FI is explicitly made as a policy objective by RBI

(as RBI for the first time in its policy Statement of April 2005

recognised the problem of financial exclusion) and some of

the more major initiates include providing facility of savings

deposits through ‘No Frills’ accounts, issuance of General

purpose credit card facility (GCC) by banks without

insistence on collateral or purpose, with a revolving credit

limit up to Rs. 25000 to enable hassle-free access to bank

credit to rural households, direct deposit of government

payments and subsidy amount in the bank accounts of the

beneficiary etc. Since then, most of the banks have also

launched their campaign for FI to cover all households at

least in one village per branch for 100% FI. In particular in

2006, RBI permitted banks to use the services kirana, 4 Financial Inclusion in India – The Journey so far and the Way Ahead

by Shri S. S. Mundra, Dy. Governor, RBI,at the BRICS Workshop on

Financial Inclusion in Mumbai on 19-9-2016.



medical and fair price shop owners, individual Public Call

Office (PCO) operators, agents of small savings schemes and

insurance companies, individuals who own petrol pumps,

retired teachers and SHGs linked to banks, Non-

Governmental organizations (NGOs), micro-finance

institutions, retired bank employees, ex-servicemen, retired

government employees for providing financial and banking

services. Further, RBI in June 2012, advised banks to set up

Financial Literacy centers (FLC) 5 in all the districts of the

country. Banks have been further advised to scale up

financial literacy efforts through conduct of outdoor

financial literacy camps, at least once a month, both by the

FLCs and also by all the rural branches.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) under the

Department of Financial Services, Ministry of Finance,

launched on 28-8-2014 is National Mission for FI of the

present NDA Government at the Center to bring poor/

financially excluded people into banking system

(Achievements is presented at the end) with following

benefits viz. at least one basic banking account for every

household with no minimum balance required, easy transfer

of money across India. After satisfactory operation of the

account for 6 months, an overdraft facility upto Rs.5000/- in

only one account per household, preferably lady of the

household is made available. In addition, account holders

are provided RuPay debit card with inbuilt accident

insurance of Rs. 1 lakh 6. The scheme provides life cover

of Rs. 30,000/- payable on death of the beneficiary, subject

to fulfillment of the eligibility condition. The long term

vision of the PMJDY is to lay the foundation of a cashless

economy and is complementary to the Digital India Scheme

7 . Last but not the least, to further the cause of FI, RBI

recently granted in-principle approval for two new

differentiated banks in the existing commercial banking

structure namely “Small Finance Banks” (SFBs) and

“Payments Banks”. “Small” for SFBs refers to the kind of

customers the banks targeted to deal with and are intended

to generate at least 75% of their loan business from the

designated priority sector (largely agriculture) from the

unbanked areas, unserved and underserved sections of the

population, small business units, small and marginal

farmers, micro and small industries and other unorganized

sector entities which do not have access to finance from the

larger banks. Besides, 50% of their loans are mandated to be

below/under Rs 25 lakhs. Payments Banks, on the other

hand, are those specialized small banks which can only

receive deposits and offer remittance services, but cannot

give loans. These payments banks are also not allowed to

hold a balance of more than Rs 1 lakh per customer in their

bank accounts

BUILDING NEED BASED BANKING

INFRASTRUCTURE

Since independence, the GOI and the RBI have put

concerted efforts in developing strong and varied need based

banking infrastructure, special policies/schemes and

developmental programmes particularly for the rural areas to

ensure availability of banking services viz.; deposit facilities

and reasonably priced/concessional interest rate credit in a

timely manner to various classes of persons living there in.

Among other measures this includes:

a) Nationalization of RBI on 1-1-1949. RBI was also

conferred with wide powers of supervision, control,

direction and inspection of scheduled and non-

scheduled banks under the Banking Companies Act,

1949 which was later renamed as Banking Regulation

Act, 1949 in the year 1966.

b) Nationalization of Imperial Bank of India on 1st July,

1955 and renaming/ restyling it as State Bank of India

(SBI). Thereafter, bringing the banks of erstwhile

princely states under the umbrella of SBI as its associate

banks (formerly called ‘subsidiaries’) in 1959. The

GOI has already facilitated the merger of all the

remaining five (05) associate banks along with the

Bharatiya Mahila Bank Ltd. into SBI with effect from

the current fiscal 8.

c) Apart from SBI, total of 20 commercial banks in

private sector were nationalized in two phases, first on

19th July, 1969 (14 banks having deposits of Rs. 50

crores and above which constituted 87.5% of total

deposits of the scheduled banks in the private sector as

on 31-12-1968) and again on 15th April, 1980 (6 more

banks having deposits of Rs. 200 cores and above).

Later, New Bank of India was merged with Punjab

National Bank in July 1993.

d) Establishment of RRBs in 1975 as a new institutional

arrangement exclusively for financing rural poor,

e) The formulation of Lead Bank Scheme (LBS) by RBI

in 1969 and restyling it as Service Area Approach

in1986 for all round development of district economy.

Under the LBS a major bank is designated by RBI as

8 “Consolidation of PSBs; Driven by Basel III Capital

Requirements?”, By, Dr. R K Sinha and Dr. D.K.Chellani, The Indian

Banker, Vol.V, Issue 3, Published by IBA, Mumbai. October 2017.

Initiatives for Financial Inclusion in India


Lead Bank and is entrusted with responsibilities of planning

and coordination with all other banks and financial

institutions operating in the district for provision of

adequate and timely credit and savings facilities mainly

for rural and semi-urban areas. The idea is supply led

approach in which the bank credit plans are made to

align with government expenditure plans under the

district collector as convener.

f) Formulation of DRI Scheme-1972, in which Public

Sector Banks (PSBs) were directed to disburse at least

1% of outstanding credit at low interest rate of 4% to

designated borrowers. (It is pertinent to note here that

commercial banks were directed to lend at 2% below the

then prevalent Bank Rate of 6%. However, thereafter

Bank Rate was changed by RBI from time to time but

lending rates and targets under DRI scheme were not

changed at all and continue to remain same till date).

g) In 1978 PSBs were also directed to provide finance to

the neglected sectors and sections of the economy. For

this, a minimal ratio of 331/3% of total advances was

prescribed to be achieved by banks by March, 1979.

This ratio was further raised to 40% of gross bank

credit to be achieved by end of 6th Five Year Plan Period

and same is expected to be maintained with adjusted net

bank credit and directed credit for potential projects,

places & various class of persons living in rural areas

under priority sector advances

h) Establishment of NABARD in July 1982 as a

development financial institution accredited with all

matters connected with rural financing/development.

Further, a High Level Committee (2008) was

established by RBI to better the effectiveness of the lead

bank scheme with stress on FI. A road map is drawn by

Committee to provide banking services in any form to

all rural areas with a population of more than 2000 by

March 2012. Also, all banks in India particularly under

the deregulated environment are spending heavily to

bring banking operations using IT infrastructure to

meet the rising expectations of customers in delivering

any-time/convenient technology enabled banking

services at doorsteps. All these developments aim at to

achieve the FI and also help banks grow their business

radically as well profitably.

MICROFINANCE AND FINANCIAL

INCLUSION

Microfinance 9 programme is mainly intended to reach

poor segments of society as they lack access to formal

financial services. It therefore, holds greater promise to

further the agenda of FI as it seeks to reach out to this

excluded category of population largely in the homogenous

group of 20 members or less rather than individual

borrowers. The innovation is that all the members of the

group are equally benefitted and also the repayment by each

member is guaranteed by all other members of the group.

India has adopted the Bangladesh model in a modified form.

The NABARD led ‘SHG-Bank Linkage Programme’ since

the last decade of the by-gone century, is by far the major

programme initiative perhaps having no parallel in

any parts of the world for achieving the FI. The programme

has demonstrated across the country its effectiveness in

linking village level credit co-operatives/banks with

excluded category of poor segments of population

particularly women. The group members are also made free

from the clutches of village lalas/money lenders

TECHNOLOGY TO CONNECT PEOPLE

WITH BANKING SYSTEM FOR FI

To achieve FI is to connect people with banking system for

availing bouquet of financial services including access to

payment system. The technology holds the key to farther the

process of FI in remote and far flung rural areas. It enhances

access to financial services in a cost effective manner (as

with increasing volume leads to more affordability). The

technology initiatives in India are: All commercial and

cooperative banks operations and procedures are put on Core

Banking Solution (CBS) platform. To outreach ATMs with

operating instructions in vernacular language are installed

by banks both on and off site. Also, ATMs with voice

recognition for the illiterates for transactions relating to

savings, credit and payment services, Bio metric enabled

ATMs to bring more illiterate poor to the banking fold,

Mobile teller/ low cost ATMs in the remote areas, KIOSK

banking using the internet facility etc.

Banks are increasingly adopting and adapting to outsource

the entire banking operations (below Rs. 50,000 per annum

and In case it exceeds the amount, the operations are shifted

to branches) to the identified trained technology enabled BC/

technical partners to reach out to people in far flung and

remote rural areas to achieve FI. The BCs in turn have

Customer Service Points (CSP s) mainly SHGs at village

levels. (Important to note is that CSPs are permanent

residents of that village and to ensure this, mainly daughter-

in-laws of the village are preferred). These CSPs provide

banking and Para banking facilities in rural areas with the

use of technical devices. and their main functions are:

Biometric enabled Smart Card (this stores customer

Account Number and the finger scans of the customer),

New Field Communication (NFC) enabled mobile set with

proprietary application, (to perform transaction and capture

customer registration data), Finger print scanner (to capture

and authenticate the customer), Printer (to print transaction

receipts), Camera (to capture customer photograph and an

image of the customer application form). Data collection

device (to consolidate customer data, process and transfer it

to the central card personalization unit), and last but not the

least, Data server (to receive and transmit the customer

transactions thrice a day from the mobile handsets of CSP’s

and once to bank server) to receive/ transmit transaction

from service provider server. All the CSPs are trained to

operate these technical devices.

The branch of the bank validates the data by comparing with

the original application already available with them. Upon

validation, the branch sends the confirmation back to DAU

who in turn sends the same to Central Data S erver (CDS) of

Bank to open the account/s as a part of CBS. Full traceability

and audit trail of the transaction is maintained. Thus, the

technology held FI process takes the banking services to the

poor rather than poor people coming to the bank.

CONCLUSION

The development of especially need based technology

enabled multi-agency banking and financial services sector

in India, particularly in the post reform period has been

revolutionary and now, perhaps has no parallel in the world.

However, wide disparities still exist across India and

within States in terms of access to financial services to the

larger sections of community in the rural areas. India’s six

largest cities have 11 per cent of the country’s bank branches

while four districts have only one branch each. The bottom

50 districts of the total 632 have just 2 per cent of the

country’s bank branches. According to ratings agency

CRISIL Report, the developed states like Gujarat and

Maharashtra lag behind the national average of 40.1

ultimately resulting in a loss of GDP due to lack of FI. The

southern region has raced ahead of all the regions in India and

particularly UT of Puducherry is on the top across all three

dimensions of FI -- branch penetration, deposit penetration,

and credit penetration. The already efforts put in by SLBC

Indian Bank and other banks in Puducherry were specifically

highlighted by RBI in its Annual Policy Statement for the

year 2006-07and advised other SLBC conveners in their

States and UTs to identify at least one district in their area for

achieving 100% FI on the lines of the initiative taken in

Puducherry.


ABSTRACT

Objectives: An attempt is made to examine HRM Practices adopted by Indian SMEs and Its Impact on Firm's Performance

& Productivity of manufacturing SMEs Registered under Chamber of Commerce and Industries of Gujarat.

Research Methodology: A mail survey was developed and distributed to owner(s)/manager(s) in manufacturing SMEs in

the state of Gujarat. One thousand questionnaires were distributed among the SMEs registered in the state of Gujarat under

the definition of MSME Act'2006. Two hundred twenty-six (226) questionnaires completely filled were received that is

equivalents to twenty two point six percent (22.6%) response rate. The owner(s)/manager(s) was (were) asked the level of

adaptation of Eight (8) HRM related practices, namely, HR Planning, Staffing, Incentives, Training, Performance

Appraisal, Training, Teamwork, Employee Participation, & CSR practices towards employees employed during the past

three years. In relation to these practices they were asked to reveal their perception about the Operational Performance,

Non-financial and financial performance during the same period. It was based on the questionnaire administered. HRM

Practices & Operational Performance is taken as independent variables while Firm's Performance is taken as Dependent

Variables, years of operations of firm are taken as control variables. SEM and Multivariate Analysis techniques used for

data analysis.

Findings : Real results bring more interesting findings in terms of practical implications to the industries. As Pearson

Product moment Correlation study supports the strong correlation between HRM practices and firm's Operational

Performance as well as Firm's Performance. Multiple Regression Analysis among HRM practices and firm performance

revealed positive impacts. While Moderating effects of Management Style on HRM practices suggests that, SMEs are

having mixed management style where it need to have decentralization in their decision making style to make the firms

globally competitive in this fast changing world. Research study finds weak culture in SMEs. It suggests lack of trust among

employees and weak employee- employer relations. Hence the present research study is set as a lamp post for viewing usage

of Human Dimension of SMEs and its potential to improve SMEs performance financially as well as strategically.

Implication : While investigate the relationship between HRM practices and Operation Performance, it is found positive

relationship between HRM practices and operational performance. Adopting these strategies align to HRM strategies, firms

can reduce work error, scrap rate, bottleneck of production process through preventive maintenance of machines. As a

results cost is cut, quality is improved and customer satisfaction is increased through high quality and low cost and on time

product delivery.

Keywords : HRM Practices, Operational Performance, Firm Performance,Financial and Non-Financial Performance.

INTRODUCTION

Background of the Study

Today's market environment is dynamic. Market stability

today may become an uncertainty tomorrow. In the kind of

market, the intensity of competition increases from time to

time. Firms are trying to defeat one another in order to be the

last survival and are able to enjoy total benefits as the market

leader. Facing this situation, managers must keep their

fingers on the pulses and are ready to respond to any abrupt

changes. Moreover they need to be sure that the resources

and capabilities are available for next steps and fights.

Traditionally, product technology and process, accessible

capital source, etc are essential to win the games. But these

kinds of resources, suggested by Pfeffer (1994) failed to

fulfill their roles to defeat competitors presently. The

decrease vitality of those primitive resources has drawn

IMPACT OF HR PRACTICES ON BUSINESS PERFORMANCE

Dr. Bhavesh VanpariyaAssistant Professor

Department of HRD, Veer Narmad South Gujarat University, Surat


practitioners and academic's attentions to explore other types

of assets which can capture and retain competitive advantage

and at the same time, are not easily imitated and copied by

competitors (Barney, 1991). Question of what kind of asset

can provide sustainability, competitive advantage, and

superior performance had been asked and discussed among

managers and scholars over the past decades.

Now days, the whole world has recognized that human

resources are very vital to get things done successfully in the

most effective and efficient ways. But still, a small number of

firms are able to elicit the hidden power of human resources

and bring them into use to become leaders in the markets. The

first formal human resource function and department were

initiated since the 1920s (Ferris et al., 1999). Traditionally,

HRM function was considered by managers as a tool to deal

with staff function, record keeping and file maintaining for

organizations. Very few corporations had understood HRM

function as a crucial agent to both strategic formulation and

implementation. The world has been instilling in people

mind and it has been realized gradually, especially for people

in business environment.

As Schuler and MacMillan (1984) mentioned that: The result

of effectively managing human resources is an enhanced

ability to attract and retain qualified employees who are

motivated to perform are numerous. They include greater

profitability, low employee turnover, high product quality,

low production costs, and more rapid acceptance and

implementation of corporate strategy.

Based on synthetic evidences from past researches on the

paramount effects of HRM on firm performance above, the

focus of this study is to test and prove power of HRM

practices. The study attempts to generalize efficacy of HRM

practice dimensions on operational performance and overall

performance of manufacturing SMEs in Gujarat. The study

also seeks to lend credence to previous studies by scholars on

improvement of firm performance through applications of

HRM practices in SME organizations.

HRM PRACTICES IN INDIAN SMES

Over the last few decades there has been a tremendous

growth in small and medium enterprises (SMEs). SMEs have

come to play a mounting role in growth of developing

nations. A number of countries have witnessed successful

SME-led economic growth and development. In India, 95

percent of industrial units (3.4 million) are in small-scale

sector with a 40 percent value addition in the manufacturing

sector. Enterprises of this type provide the second highest

employment level after agriculture and account for the 40

percent of industrial production. Due to booming economy,

friendlier regulations and Government Subsidiaries, the

SMEs sector has achieved rapid growth in recent years.

As SMEs focus more on running the business on a day-to-day

basis, they find less time to manage the HR processes which

is perceived as non priority. SMEs do not feel like revamping

existing organizational structure, especially when they know

that the status quo is delivering the output. Competitiveness

of SMEs can be enhanced through better HRM practices of

recruitment, selection, training and compensation. Indian

SMEs need to reduce overall cost of products to remain

competitive with Chinese manufacturers and exporters.

Apart from other functional areas such as production,

finance, marketing, inventory and logistics, SMEs also need

to focus on implementing best HR practices. (Madhani,

2011).

RESEARCH MOTIVATIONS

The attention to applying human resource management into

practices has become acknowledgeable and more popular

among practitioners and scholars. Many managers have

implemented HRM practices with different methods on the

purpose of finding out the most effective ways to achieve and

capture desired outcomes and benefits. Some firms may

pursue strategic human resource management to be cost

leaders and some orient their paths toward product

differentiators. Different organizations use HRM policy in

different ways to achieve distinct goals. But we can draw on

ultimate objectives of them, which are profitability, excluded

non-profit organizations.

How HRM can be applied appeared in debate among HRM

scholars. Along with the hot issues, there is one significant

argument that HRM practices would perform very well when

they were combined together as “bundled practices”. The

idea is that productivity is the best served by the systematic

interactions among the practices (Boxoll, 2003). It is

intuitively able to assume that HRM bundles may outperform

individual HRM. Most HRM criteria have reciprocal effects

on one another and can help improve better performance

when they are combined together consistently and correctly.

For example, good incentive plan provided to employees is to

boost employees' productivity, but if no training provided to

them to improve their skills; productivity may rise to some

limit level.

The second motivation of this study is to observe the effects

of HRM practices on operational performance and firm

performance in a single model. Past researches focused on

either operational performance (Ahmad & Schroeder, 2003)


or organizational performance in separate studies.

The third motivation of the study is to seek the moderating

effects of management style, social capital, and corporate

culture on firm performance when applied with HRM

practices. A number of researches on the practices of HRM

integrated with moderating effects to business performance

seem to be increasing. Some authors have already included

moderating effect to manufacturing strategy along with

HRM practices into to boost firm performance (e.g. Youndt

et. al., 1996). But study on moderating effects of soft HRM

issue, like culture, to bolster firm performance has yet not

been popularly adopted among researchers.

It's expected that HRM practices, integration with

moderating effects, such as management style, social capital,

and culture is likely to boost business performances than the

application of HRM practices alone. This study aims to

explore and prove this kind of interesting findings.

RESEARCH OBJECTIVES

1. To explore the relationship between HRM practices

and firm performance and operational performance.

2. To measure the effect of Management Style on

relationship between HRM practices and firm and

operation performance.

3. To investigate the effect of Social Capital on

relationship between HRM practices and firm &

operational performance.

4. To study the effect of Corporate Culture on relationship

between HRM practices and firm &operational

performance.

5. To analyses the difference in of HRM Practices, Firm

Performance, and Operational Performance across

year of operation of the firm.

LITERATURE REVIEW

Sarbapriya Ray & Ishita Aditya Ray (2011) in their study on

Small and Medium Sized Iron &Steel Firms in India,

explored that, that factors like performance appraisal,

participation in decision making, training and development,

empowerment, compensation influencing human resource

management(HR) practices have significant association with

job satisfaction (JS).

Shikha Khera (2010) in her studies on HRM Practices and its

impact on productivity found that through the use of strategy-

based HR policies and practices, firms create a more

competent and committed workforce, which in turn provides

a source of sustainable competitive advantage.

A.Khandekar(2005) in his studies on Organizational

learning in Indian organizations: a strategic HRM

perspective reveals that, reveals that there is a positive

relationship between organizational learning, strategic HRM

and sustainable competitive advantage.

HRM and Indian epistemologies: A review and avenues for

future research M.Singh & N.Vohra (2009) integrates and

discusses research on HRM in India with a focus primarily on

the past fifteen years. It is within this complexity that

research on India and its workforce is presented by

illuminating HRM as embedded in the Indian environment

with its intricate epistemologies and transitions in a period of

dynamic change.

G.Theriou, P.Chatzoglou, (2008)"Enhancing performance

through best HRM practices, organizational learning and

knowledge management: specific processes that mediate

between best HRM practices and organizational

performance.

P.Budhawar (2000) in his study on 137 Indian manufacturing

firms have suggested that, number of significant correlations

between a set of contingent variables (i.e., age, size,

ownership, life cycle stage and HRM strategies of an

organization, type of industry and union membership) and

four HRM functions of recruitment and selection, training

and development , compensat ion and employee

communication. Similarly, four national factors (namely

national culture, institutions, dynamic business environment

and business sector) are suggested, which influence Indian

HRM policies and practices.

M.Chand (2010) in his study on Human resource

management practices in Indian hospitality enterprises

revealed that, harmonized terms and conditions, formal

manpower planning, flexible job description, formal system

of induction, production/service staff responsible for their

service, social appreciation and recognition may constitute

the most important HRM practices in the Indian hospitality

enterprises.

S. Kundu & D. Malhan (2009) in his study on “HRM

practices in Insurance Companies: A Study of Indian and

Multinational Companies” concluded that, Competitive

advantage of a company can be generated from human

resources (HR) and company performance is influenced by a

set of effective HRM practices.

A.Paul & R.Anantharaman (2004) “Influence of HRM

practices on organizational commitment: A study among

software professionals in India” reveals that HRM practices


such as employee-friendly work environment, career

development, development oriented appraisal, and

comprehensive training show a significant positive

relationship with organizational commitment.

P.Kasturi, et.al, (2006) " HRM systems architecture and firm

performance: Evidence from SMEs in a developing country

“In their study shown that the attitude of the firm's owner(s)

towards its employees is a major determinant of the firm's

profitability. The effect of HRM philosophy on productivity

is smaller, albeit still highly significant.

A. Som (2008) in his study on, “Innovating Human Resource

Practices and Corporate performance in the context of

Economic liberalization in India” shown that, innovative

recruitment and compensation practices have a significant

relationship with firm performance. It was observed that,

recruitment, role of the HR department and compensation

practices seem to be significantly changing within the Indian

firms in the context of Indian liberalization.

M.Joshi & N.Vohra (2009) in their research work on, Level

of Formalization of Human Resource Management in Small

and Medium Enterprises in India reveals that, level of

formalisation of HRM systems in SMEs was low and owner-

managers played a central role in the HR functions of their

enterprises. Compared to small enterprises, the level of

formalisation was found to be higher for medium enterprises

N.Akhuri & R. Sharma(2010) “HR Determinants of

Organizational Success amongst Small & Medium

Enterprises in Indian Automobile Sector” Three scales have

been developed by the researchers- Engaging Leadership

(from the leader's perspective), Engaging Leadership (from

the subordinate's perspective) and Employee Engagement.

At a later stage a full scale research can be carried out on a

larger sample size and in more number of firms. One of the

direct uses could be 360 degree feedback based on these

scales in these SMEs for developmental purposes.

Research Model:

HR Planning

Staffing

Appraisal

Incen�ves

Training

Teamwork

EmployeePar�cipa�on

CSR prac�cestowards Employee

HRMPrac�ces

ProductQuality

ProductCost

Delivery

Flexibility

FirmPerformance

FinancialPerformance

Non‐FinancialPerformance

ManagementStyle

SocialCapital

CorporateCulture

Opera�onalPerformance


HYPOTHESIS FORMULATION

H1 : HRM practices are positively related to firm&

operational performance.

H2 : HRM practices are positively related to operational

performance.

H3 : HRM practices have impact on firm's financial

&non financial performance.

H4 : HRM practices have impact on firm's financial

performance.

H5 : Management Sty le (Decent ra l iza t ion Vs

Centralization) moderates the relationship between

HRM practices and operational& organization

performance.

H6 : Management Sty le (Decent ra l iza t ion Vs

Centralization) moderates the relationship between

HRM practices and organization performance.

H7 : Social Capital (Trust Vs Distrust) moderates the

relationship between HRM practices and

Operational and firm Performance.

H8 : Social Capital (Trust Vs Distrust) moderates the

relationship between HRM practices and firm

performance.

H9 : Corporate culture (Proactive Vs Reactive culture)

moderates the relationship between HRM practices

and operational & organizational performance.

H10 : Corporate culture (Proactive Vs Reactive culture)

moderates the relationship between HRM practices

and organizational performance.

H11 : There is no difference in of HRM Practices, Firm

Performance, and Operational Performance across

year of operation of the firm.

H12 : HRMP, SC, MS and CC (treated as an independent

variable) have impact on Firm Performance and

Operation Performance.


Types of Research Design: Researcher has reviewed variety

of research methods which can be used in study of social

sciences. However considering the typical topic researcher in

consultation with the guide decided to use exploratory

research design, which is an effort to know the impact of HR

practices on the firm's Operational Performance & Firm's

Performance.

Sampling Method:

Target Population: Target population of the research is

restricted to the firms that fall under the category of SME's in

India as Sampling Universe and Sample population has been

derived from the SME firms registered in the state of Gujarat.

Sampling Design: Here the nature of research is in the area

of Small & Medium Enterprises registered in Gujarat; hence

Random Sampling is the ideal sampling method for carrying

out the research.

Sample Size: The sample size for the real research is 1000

respondents with the response rate of 22.6%. So the final

total sample size is 226.

INSTRUMENTS USED IN RESEARCH

Open ended as well as closed questions were included in the

questionnaire to determine the context of the research by

asking general questions like age, gender, and occupation.

Multiple choice questions were employed with Likert scales

so respondents could indicate the 'level of agreement' of their

perception towards each HRM practices, 'Level of

achievement' with respect to Operational practices as well as

Firm Performance, 'The Likert scale had a range of options

from 'Strongly Agree' to 'Strongly Disagree' as well as from '

Very Low to Very High'. This gave respondents the ability to

make fine distinctions between adoption of various HRM

practices as well as Operational & Firm Practices (Dundas,

2004). For moderating variables bipolar questions are asked

according to the degree of achievement or adoption of firm.

There are two sides of each factor, left & right. Respondent

asked to choose one between the left & right and rate with

five degrees, ranging from 1,2,3,4 to 5 which means (5) Very

High, (4) High, (3) Moderate, (2) Low & (1) Very Low.

Test Used: Preliminary Analysis (Preliminary analysis

includes Assessing normality, Multicollinearity, Checking

outlier, Homoscedasticity, Independence of Residual,

Scatterplots), Reliability Analysis , Correlation coefficient

Analysis, Multiple regressions Analysis, ANOVA

Software Used for Data Analysis: MS EXCEL, IBM SPSS,

AMOS

ANALYSIS AND DISCUSSION

Characteristics Survey Data


Frequency Percent

GENDERMale 209 92.5

Female 17 7.5

AGELess than 30 54 23.9

30 to 40 82 36.3

41-50 54 23.9

51-60 31 13.7

More than 60 5 2.2

EDUCATION

Bachelor

113 50

Post

Graduate

36 15.9

Master

67 29.6

Others

10 4.4

POSITION

Entrepreneur

71 31.4

Employees

62 27.4

Supervisor

9 4

Manager

67 29.6

President

&

Vice

President

17 7.5

EMPLOYEES

Less than 50

107 47.3

51-100

54 23.9

101-150

10 4.4

151-200

13 5.8

More than 200

42 18.6

CLASS OF FIRM

Local

180 79.6

Foreign/Export

Oriented

25 11.1

Joint

Venture

19 8.4

Others

2 0.9

YEAR OF OPERATION

Less

than

5

22 9.7

5-10

46 20.4

11-15

49 21.7

16-20

26 11.5

More than 20

83 36.7

INDUSTRY TYPE

Manufacturing

226 100

TOTAL 226

Normality of Data :

All skewness value is from -0.019 to -1.175 and kurtosis

value is from 0.014 to 1.348. According to the guideline

suggested by Kline (1998), all variables are univariate

normal and the individual variable is normal in a univariate

sense and that their combinations are also normal. So

researcher can conclude that HRM data is multivariate

normal and should be used for further multivariate analysis.

One of the ways that these assumptions can be checked is by

inspecting the residuals scatterplot and the Normal

Probability Plot of the regression standardized residuals that

were requested as part of the analysis.

Figure No. 1 P-P Plot& Scatterplot

In the Normal Probability Plot (Figure No. 1), we observed

that our points have lie in a reasonably straight diagonal line

from bottom left to top right. This would no major deviations

from normality. In the Scatterplot of the standardized

residuals (Figure No.1) we observed that the residuals were

roughly rectangular distributed, with most of the scores

concentrated in the centre (along the 0 point). Standardized

residual (as displayed in the scatterplot) of more than 3.3 or

less than -3.3.

Table No.1 Characteristics Survey Data

Normal P-P Plot of Registration Standardeed Residual

Dependent Varicle : Firm Performance

Observed Cum Preb

0.00.00.0 0.20.20.2 0.40.40.4 0.60.60.6 0.80.80.8 1.01.01.00.00.00.0

0.20.20.2

0.40.40.4

0.60.60.6

0.80.80.8

101010

Exp

ect

ed

Cu

m P

rob

Regression Seandreadred Predicted Value

Dependent Varicle : FIRM PERFORMANCE

Re

gre

ssio

n S

ean

dre

adre

d R

esi

du

al

20‐2‐4

‐4‐4‐4

222

000

‐2‐2‐2


Cronbach Reliability

Table No.2Cronbach Reliability


HRM Practices

OP

FP

Cronbach's Alpha

N ofItems

Cronbach's Alpha

N of Items

Cronbach's Alpha

N ofItems

.908 36 .755 13 .783 13

Model Validity:

Table No.3 Goodness-of-Fit Statistic (Measurement Model-

SERVQUAL).

Goodness-of-fit model index Recomm-

ended

Value*

Conceptual

HRM

Model

Chi-square/degree of freedom(CMIN/df)**

≤ 5.00 2.16

Goodness-of-t index(GIF)

≥ .90

.90

Adjusted goodness-of-t index

(AGFI)

≥ .80

.86

Normalized t index (NFI)

≥ .90

.91

Tucker-Lewis index

(TLI/NNFI)

≥ .90

.94

Comparative t index

(CFI/RNI)

≥ .90

.95

Root mean square error of

approximation (RMSEA)

≤ .08 .06

Standardized root mean square

residual (standardized RMR)

≤ .08 .0429

* These criterias are according to Hair et al. (1998,2010) and Arbuckle

and Wothke (1995)

** Ullman (1996) recommended chi-squar/degree of freedom value of

< 5.00.

The score obtained from the analysis suggested an excellent

fit between the data and model (χ2 =430.51, df=199,

χ2/df=2.16, TLI=.939, CFI=.947, RMSEA=.06). All the fit

indices comply with the values recommended by Haire

et.al.(2010) and Arbuckle and Wothke (1995) .

Hypothesis Testing

H1: HRM practices are positively related to firm's

performance.

Table No.4 - Correlations between HRMP and FP

HRMP

HRM Practices Pearson Correlation

1

Sig. (2-tailed)

N

226

FIRMPERFORMANCE

Pearson Correlation

.494**

Sig. (2-tailed)

.000

N 226

**. Correlation is signicant at the 0.01 level (2-tailed).

FIRMPERFO-RMANCE

.494**

.000

226

1

226

There is linear positive correlation between HRM Practices

and Firm Performance. The correlation coefficient is 0.494

and is statistically significant as the p-value is less than 0.05.

In other words, researcher failed to accept the Ho and leads to

rejection of Ho.It means, HRM practices are positively

related to firm's performance.

Correlation between HRM Dimensions and Financial

& Non-Financial Performance

Table No.5 Correlations between Nonfinancial and

Financial Performance

Nonnancial

Performance

Financial

Performance

HR Planning

Pearson Correlation

.499**

.130

Sig. (2-tailed)

.000

.050

N

226

226

Stafng

Practices

Pearson Correlation

.294**

.287**

Sig. (2-tailed)

.000

.000

N

226

226

Incentives

Practices

Pearson Correlation

.329**

.214**

Sig. (2-tailed)

.000

.001

N

226

226

Performance

Appraisal

Pearson Correlation

.464**

.163*

Sig. (2-tailed)

.000

.014

N 226 226

TrainingProgram

Pearson Correlation

.271** .153*

Sig. (2-tailed) .000 .022

N 226 226


Teamwork

Pearson Correlation

.121

.182**

Sig. (2-tailed)

.068

.006

N

226

226

EmployeeParticipation

Pearson Correlation

.189** .295**

Sig. (2-tailed) .004 .000

N 226 226

CSR towardsemployees

Pearson Correlation

.414** .227**

Sig. (2-tailed) .000 .001

N 226 226

**. Correlation is significant at the 0.01 level (2-tailed).

There is linear positive correlation between HRM

Dimensions and Financial & Non-Financial Performance.

The correlation coefficients are positive and are statistically

significant as the p-value is less than 0.05 except team work.

H2: HRM practices are positively related to Operation

performance.

Table No.6 Correlations between HRMP and OP

HRM

OPERATION

PERFOR-

MANCE

HRM Practices

Pearson Correlation

1 .399**

Sig. (2-tailed)

.000

N

226 226

Operation

PERFORMANCE

Pearson Correlation .399** 1

Sig. (2-tailed) .000

N 226 226

**. Correlation is signicant at the 0.01 level (2-tailed).

There is linear positive correlation between HRM Practices

and Operation Performance. The correlation coefficient is

0.399 and is statistically significant as the p-value is less than

0.05. In other words, researcher failed to accept the Ho and

leads to rejection of Ho.It means, HRM practices are

positively related to of Operation performance

H3: HRM Practices has impact on firm's non financial

performance.

Table No.7 ANOVA-HRM Practices & financial

performance

Model

Sum of Squares df

Mean Square F Sig.

1 Regression

810.929

1

810.929

75.920 .000a

Residual

2392.633

224

10.681

Total

3203.562

225

a. Predictors: (Constant), HRMP , b. Dependent Variable: Non : Financial Performance

The value of R-Square is .250, which means that about 25 per

cent variation in the dependent variable-non-financial

performance is explained by the independent variable- HRM

Practices.The F-value is the Mean Square regression dived

by the Mean Square Residual, yielding F=75.920. The p-

value associated with the F value is very small (.000). Here

we can say that HRM practices explain the significant

amount of variation in the Non-Financial performance of the

firm.

Table No.8 Coefficients-HRM Practices & financial

performance

Model

Coefcients Coefcients

t Sig.B

Std. Error

Beta

1

(Constant)

4.196

1.506

2.786 .006

HRMP .102 .012 .503 8.713 .000

a. Dependent Variable: Nonnancial Performance

Unstandardized Standardized

From above table, the beta of HRMP variable is .503 and its

significant (p<.05), it means HRMP have strong impact on

Non-financial performance of firm.

H4: HRM practices have impact on firm's financial

performance.

Table No.9 ANOVA- HRM practices and financial

performance

Model

Sum of Squares

df

Mean Square

F Sig.

1

Regression

419.268

1

419.268

22.223 .000a

Residual

4226.007

224

18.866

Total 4645.274 225

a. Predictors: (Constant), HRMP, b. Dependent Variable: Financial Performance



cent variation in the dependent variable-financial



by the Mean Square Residual, yielding F=22.223. Here we

can say that HRM practices explain the significant amount of

variation in the financial performance of the firm.

Table No. 10 Coefficients HRM practices and financial

performance

Here, the mediator variable management style has no

significant effect (p>.05,in equation no.3) on the

relationship between HRM practices and firm's Operation

performance.

H7: Social Capital (Trust Vs Distrust) moderately affects

the relationship between HRM practices and firm's

Operation performance.

Table No.13 Sequence of Regression Analyses to establish

the Mediating Effect of Social Capital on Operation

Performance

Here, the mediator variable Social Capital has no significant

effect (p>.05,in equation no.3) on the relationship between

HRM practices and firm's Operation performance.



performance.


the Mediating Effect of Social Capital on Firm Performance



HRM practices and Firm Performance.

H9: Corporate culture (Proactive Vs Reactive)

moderately affects the relationship between HRM

practices and firm's Operation performance.


the Mediating Effect of Corporate culture on Operation

Performance

From above table, the beta of HRMP variable is .300 and it's


Financial Performance of firm.

H5: Management Style (Decentral izat ion Vs

Centralization) moderately affects the relationship

between HRM practices and firm's Operational

performance.


the Mediating Effect of Management Style on Operation

Performance

Here, the mediator variable Management style has no


relationship between HRM practices and Firm's Operation

Performance.



between HRM practices and firm's performance.


the Mediating Effect of Management Style on Firm

Performance

Coefcientsa

Model

Unstandardized Coefcients

Standardized

Coefcients

t Sig.B

Std. Error

Beta

(Constant)

19.282

2.002

9.633 .000

HRM .073 .016 .300 4.714 .000

a. Dependent Variable: Financial Performance

R Square

F

Sig. Beta sig.***

a

HRMPMS

.017

3.904 0.049 0.131 0.049

b

HRMPOP

.160

42.53 0.000 .399 0.000

c HRMP and MS OP .160 21.18 0.000 .401* .000

-.008** .894

*beta of HRMP , **beta of MS,***Sig. at 95% Condence Level

R Square

F

Sig. Beta sig.***

a

HRMPMS

0.017

3.904

0.049 0.131 0.049

b

HRMPFP

0.224

72.23

0.000 0.494 0.000

c HRMP and MS FP 0.237 36.01 0.000 0.492* 0.000

0.292** 0.771

*beta of HRMP , **beta of MS ,***Sig. at 95% Condence Level

R Square

F

Sig. Beta sig.***

a

HRMPSC

.100

24.79 0.000 -.316 0.000

b

HRMPOP

.160

42.53 0.000 .399 0.000

c HRMP and SC OP .160 21.18 0.000 .397 .000

-.007 .908

*beta of HRMP , **beta of SC, ***Sig. at 95% Condence Level

R Square

F

Sig. Beta sig.***

a

HRMPSC

.100

24.79

0.000 -.316 0.000

b

HRMPFP

.244

72.23

0.000 .494 0.000

c HRMP and SC FP .244 35.98 0.000 .489 .000

-.014 .824



Model

Sum of Squares

df

Mean Square

F Sig.

1

Regression

810.929

1

810.929

75.920 .000a

Residual

2392.633

224

10.681

Total

3203.562

225

a. Predictors: (Constant), HRMP , b. Dependent Variable: Non Financial Performance


cent variation in the dependent variable-non-financial



by the Mean Square Residual, yielding F=75.920. The p-

value associated with the F value is very small (.000). Here

we can say that HRM practices explain the significant

amount of variation in the Non-Financial performance of the

firm.

Table No.8 Coefficients-HRM Practices & financial

performance


by the Mean Square Residual, yielding F=22.223. Here we

can say that HRM practices explain the significant amount of

variation in the financial performance of the firm.

Table No. 10 Coefficients HRM practices and financial

performance

From above table, the beta of HRMP variable is .300 and it's





between HRM practices and firm's Operational

performance.


the Mediating Effect of Management Style on Operation

Performance

Here, the mediator variable Management style has no


relationship between HRM practices and Firm's Operation

Performance.





the Mediating Effect of Management Style on Firm

Performance

From above table, the beta of HRMP variable is .503 and its


Non-financial performance of firm.

H4: HRM practices have impact on firm's financial

performance.

Table No.9 ANOVA- HRM practices and financial

performance


cent variation in the dependent variable-financial


Model

Coefcients Coefcients

t Sig.B

Std. Error

Beta

1

(Constant)

4.196

1.506

2.786 .006

HRMP .102 .012 .503 8.713 .000


Unstandardized Standardized

Model

Sum of Squares

df

Mean Square

F Sig.

1

Regression

419.268

1

419.268

22.223 .000a

Residual

4226.007

224

18.866

Total 4645.274 225

a. Predictors: (Constant), HRMP, b. Dependent Variable: Financial Performance

Coefcientsa

Model

Unstandardized Coefcients

Standardized

Coefcients

t Sig.B

Std. Error

Beta

(Constant)

19.282

2.002

9.633 .000

HRM .073 .016 .300 4.714 .000


R Square

F

Sig. Beta sig.***

a

HRMPMS

.017

3.904

0.049 0.131 0.049

b

HRMPOP

.160

42.53

0.000 .399 0.000

c HRMP and MS OP .160 21.18 0.000 .401* .000

-.008** .894

*beta of HRMP , **beta of MS,***Sig. at 95% Condence Level

R Square

F

Sig. Beta sig.***

a

HRMPMS

0.017

3.904

0.049 0.131 0.049

b

HRMPFP

0.224

72.23

0.000 0.494 0.000

c HRMP and MS FP 0.237 36.01 0.000 0.492* 0.000

0.292** 0.771

*beta of HRMP , **beta of MS ,***Sig. at 95% Condence Level


Here, the mediator variable management style has no



performance.



Operation performance.


the Mediating Effect of Social Capital on Operation

Performance



HRM practices and firm's Operation performance.



performance.


the Mediating Effect of Social Capital on Firm Performance

R Square

F

Sig. Beta sig.***

a

HRMPSC

.100

24.79 0.000 -.316 0.000

b

HRMPOP

.160

42.53 0.000 .399 0.000

c HRMP and SC OP .160 21.18 0.000 .397 .000

-.007 .908


R Square

F

Sig. Beta sig.***

a

HRMPSC

.100

24.79 0.000 -.316 0.000

b

HRMPFP

.244

72.23 0.000 .494 0.000

c HRMP and SC FP .244 35.98 0.000 .489 .000

-.014 .824




HRM practices and Firm Performance.


moderately affects the relationship between HRM

practices and firm's Operation performance.


the Mediating Effect of Corporate culture on Operation

Performance

R Square

F

Sig. Beta sig.***

a

HRMPCC

.105

26.37 0.000 -.325 0.000

b

HRMPOP

.160

42.53 0.000 .399 0.000

c HRMP and CC OP .160 21.30 0.000 .389 .000

-.031 .631

*beta of HRMP , **beta of CC,***Sig. at 95% Condence Level

Here, the mediator variable Corporate Culture has no



performance.


moderately affects moderately affects the relationship



the Mediating Effect of Corporate Culture on Firm

Performance

Here, the mediator variable Corporate Culture has no


relationship between HRM practices and Firm Performance.

H11: There is no difference in of HRM Practices, Firm

Performance, and Operation Performance across year of

Operation of the firm.

Table No.17 ANOVA-HRMP and Year of Operation

F-value is the ratio between-groups mean squares and

within-group mean square. The F-ratio equals 1.677 and its

associated p-value (sig.) is reported as .156. It indicates the

probability of observed value happening by chance. The

result shows that the difference between means of five

groups (categories) of years of Operation of firms is non-

significant. Thus, we fail to reject null hypothesis and say

that there is no difference in of HRM Practices across year of

Operation of firm.

There is no difference in Dimensions of HRM

Practices of firm belonging to its year of Operations.

Table No.18 ANOVA on Dimensions of HRM Practices of

firm belonging to its year of Operations.

R Square

F

Sig. Beta sig.***

a

HRMPCC

.105

26.37 0.000 -.325 0.000

b

HRMPFP

.244

72.23 0.000 .494 0.000

c HRMP and CC FP .254 38.04 0.000 .458 .000

-.109 .077

*beta of HRMP , **beta of CC, ,***Sig. at 95% Condence Level

HRM PRACTICE

Sum of

Squares

df

Mean Square F Sig.

Between Groups

2286.562

4

571.641 1.677 .156

Within Groups

75326.079

221

340.842

Total 77612.642 225


The result shows that the difference between means of five


significant in all the dimension of HRM Practices. Thus, we

fail to reject null hypothesis and say that there is no

difference in HR Planning, Incentives Practices,

Performance Appraisal, Employee Participation, CSR

towards Employees, Staffing Practices, Training Program,

Team work across year of Operation of firm.

There is no difference in Firm Performance (Financial

and Non-financial Performance) belonging to its year of

Operations.

Table No.19 ANOVA Firm Performance (Financial And

Non-Financial Performance) Belonging To Its Year Of

Operation

Sum of Squares

df

Mean Square

F Sig.HR Planning

Between Groups

71.184

4

17.796

2.002 .095Within Groups

1964.219

221

8.888

Total

2035.403

225

Incentives

Practices

Between Groups

40.560

4

10.140


1205.693

221

5.456

Total

1246.252

225

Performance

Appraisal

Between Groups

15.076

4

3.769

.711 .585Within Groups

1171.066

221

5.299

Total

1186.142

225

Employee

Participation

Between Groups

27.655

4

6.914


989.814

221

4.479

Total

1017.469

225

CSR

towards

employees

Between Groups

352.331

4

88.083


18700.045

221

84.616

Total

19052.376

225

Stafng

Practices

Between Groups

56.820

4

14.205


1402.242

221

6.345

Total

1459.062

225

Training

ProgramBetween Groups

29.140

4

7.285

.933 .446Within Groups 1726.082 221 7.810Total 1755.221 225

Teamwork Between Groups 19.705 4 4.926 .857 .490Within Groups 1269.764 221 5.746Total 1289.469 225

ANOVA

Sum of Squares df Mean Square F Sig.

Financial

Performance

Between Groups

256.504

4 64.126 3.229 .013Within Groups

4388.771

221 19.859Total 4645.274 225

NonnancialPerformance

Between Groups 56.831 4 14.208 .998 .410Within Groups 3146.731 221 14.239Total 3203.562 225

The F-ratio in financial performance equals 1.677 and its


probability of observed value happening are not by chance.

The result shows that the difference between groups

(categories) of years of Operation of firms is significant.

Moreover, thus we reject null hypothesis and say that there is

significant difference in of financial across year of Operation

of firm. Moreover F-ratio in non-financial performance .998

and its associated p-value (sig.) is reported as .410. It

indicates the probability of observed value happening by

chance. The result shows that the difference between groups

(categories) of years of Operation of firms is non-significant.


There is no difference in Operation Performance of firm

belonging to its year of Operations.

Table No.20 ANOVA-difference in Operation

Performance of firm belonging to its year of Operations.

From above table, the beta of HRMP variables is .345 and it's



Impact on HRMP, Management style, Social Capital and

Corporate Culture on Operation performance

Table No.23 Coefficients- HRMP, Management style, Social

Capital and Corporate Culture on Operation performance

From above table, the beta of HRMP variables is .392 and it's


Operation Performance of firm.

CONCLUSIONS

From the findings of HRM practices and Firm Performance

Correlation studies, it was found HRM Practices has a

positive impact on Financial Performance. And the most

positively related that has impact of CSR practices towards

employees, Employee Participation & and staffing. HR

planning and Training are failed to create any significant

impact, hence HR Planning and training has less influence on

firm's financial performance. This may be explained that

using great amount of money investing in selective staffing

to get talented people can somewhat cut down cash flow for

market share expansion. Sales Growth of the firm can

enhance by CSR practices towards employee, employee

participation, training and staffing which indicates that, well

trained sales staff can effectively convert cold call into sales

call thereby impressing upon company's market share and its

contribution towards his employees wellbeing in a form of

CSR activities.

F-value is the ratio between-groups mean squares and

within-group mean square. The F-ratio equals 1.496 and its


probability of observed value happening by chance. The

result shows that the difference between means of five


significant. Thus, we fail to reject null hypothesis and say

that there is no difference in of Operation of Firm across year

of Operation of firm.

H12: Impact on HRMP, Management style, Social

Capital and Corporate Culture on Non Financial

performance, Financial Performance and Operation

Performance


Corporate Culture on Non Financial performance

Table No.21 Regression Analysis

From above table, the beta of HRMP and Corporate Culture

variables are -.399 and .334 respectively and it's significant

(p<.05), it means HRMP and Corporate Culture have strong

impact on Non-Financial Performance of firm.


Corporate Culture on Financial performance

Table No.22 Coefficients- HRMP, Management style, Social

Capital and Corporate Culture on Financial performance

OPERATION PERFORMANCE

Sum of

Squares

df

Mean Square F Sig.

Between Groups

231.397

4

57.849

1.401 .235

Within Groups 9128.568 221 41.306Total 9359.965 225

Coefcients

Model

Unstandardized

Coefcients

Standardized

Coefcients

t Sig.B

Std.

Error

Beta

1

(Constant)

10.173

1.811

5.618 .000

Management

style

-.022

.036

-.034 -.620 .536

Social Capital

7.123E-5

.046

.000 .002 .999

Corporate

Culture

-.211 .046 -.334 -4.604 .000

HRM

PRACTICE

.081 .012 .399 6.866 .000


Coefcientsa

Model

Unstandardized

Coefcients

Standardized

Coefcients

t Sig.B

Std. Error Beta

1

(Constant)

15.423

2.553 6.041 .000

Management style .050 .050 .064 1.004 .317

Social Capital .098 .065 .128 1.508 .133

Corporate Culture .030 .065 .040 .468 .640

HRM PRACTICE .084 .017 .345 5.074 .000


Coefcientsa

Model

Unstandardized

Coefcients

Standardized

Coefcients

t Sig.B

Std. Error

Beta

(Constant)

29.607

3.529

8.389 .000

Management style

-.007

.069

-.007 -.105 .917

Social Capital .019 .089 .018 .216 .829

Corporate Culture -.046 .089 -.042 -.509 .611

HRM PRACTICE .136 .023 .392 5.919 .000

a. Dependent Variable: OPERATION PERFORMANCE


Regression analysis of HRM practices on firm performance

found that, impact of HRM practices on Firm Performance is

positive but it shows more impact in non-financial

performance than to a firm financial performance. It reveals

that, in SMEs the role of HRM is shattered by the marketing,

finance and production role due to limited machine, material

and money.

Similar findings reveals in the study of that, Small

entrepreneurial firms in India do not implement formal HR

practices due to limit operations in low technology, low

margin business encouraging great lack of formal systems

and practices prominently in human resources management.

Our findings on Moderating role of Management Style on the

relationship between HRM practices and Firm performance

as well as HRM practices and Operational Performance

shows that, top management's decentralization role delegates

the operational tasks and authority to perform this task to

middle and junior management develops confidence among

employees to become responsible and contribute towards the

performance.

Present findings are significantly contributing to the non

financial performance than to financial performance so

future studies should be towards individual practices and

how it is impacting the firm's financial performance.

Present study has taken management style, culture and social

capital as moderating variables, other variables such as firm

strategy and environmental uncertainty can be tested on

HRM and firm performance relationship as well as HRM –

operational performance relationship.

Further studies could also consider undertaking more

complex research than the present research by adding control

variables other than firm size and employees' strength in the

firm.

While this study makes a number of contributions, it also has

a number of limitations. The major limitations of this study

revolve around sampling issues as the small sample size (226

firms) reported here may have affected the current results.

Even though the findings might have indicated certain

results, these findings cannot be construed as an independent

model to ensure performance of the entire SME sector. As

nature of SMEs is keep changing based on SME clusters.

Hence separate studies should be undertaken for SMEs of

textile, manufacturing, gems and so on.

Nonetheless, this model has provided insight into possible

reasons for organizational performance. In addition to that,

the study focused on perceptions of organizational

performance and HR practices as reported by the employees.

Hence, it is subject to common source and common method

bias.

A longitudinal approach would have placed the researcher in

a better position to draw causal conclusions. Therefore, only

conclusions or discussions of the general relationships

between the variables of interest could be drawn.

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ABSTRACT

The notion of human development essentially addresses the human in development — all those elements which make a

person human not only in terms of what she /he needs for basic survival such as food, clothing or shelter, health, etc, but a

sense of dignity, ability to mix with others without being ashamed to appear in public. It is the process of enlarging people's

choices. The human development approach looks at income as a means, not as an end, to people's development, in contrast

with the earlier growth models. Many studies in field of sociology of development argues that that there is no automatic link

between income and human progress.

The term human development denotes both the process of widening people's choices and the level of their achieved well-

being. It also helps in distinguishing, clearly, between two sides of human development. One is the formation of human

capabilities, such as improved health or knowledge; the other is the use that people make of their acquired capabilities. In

contrast with earlier theories and models, the human development approach broadens the concept to not only include issues

such as basic needs and income, but also people's choices — on what people should have to be able to ensure their own

livelihood without ending up as mere beneficiaries. Human development is, moreover, concerned not only with basic need

satisfaction but also with human development as a participatory dynamic process.

Infrastructure is an indicator for expansion, diversification and modernization of the economy culminating in an

improvement in living standards. It is always argued that if the goals of development are to be achieved an efficient and

adequate infrastructure is an important precondition. Infrastructure is the physical framework of a region that helps the

region in its progress and prosperity. Inadequacy of Infrastructure is observed as the major reason for the

underdevelopment.

Though Infrastructure contributes to economic growth both by increasing productivity. It is intriguing required to

investigate how Infrastructure services which are meant to expand choices of people are affecting capabilities of people.

Linkages of infrastructure development and human development moves beyond realm of any particular discipline, making

it more complex and multi disciplinary phenomenon to study.

Keywords : Infrastructure Growth, Human Development, Economic Growth.

INTRODUCTION

The study of development has remain subject interest of

sociology since inception of discipline. Sociology of

development attempts to study the causes and consequences

of economic changes in society. Initial theories of Marx

(1867) and Weber (1904) provides debaters concerning to

rise and evaluation of capitalism. The sociological

inclination towards analysis of causes and consequences of

development has supported development of Parsonsian

functionalism, Neo-Marxist Theories and World Systems

theories. Such development theories considered inter-

relation between economic growth and life of an individual 1stimulated by models of demography , models of migration,

models of historical transformation, gender roles, etc. It also

consistently presented dialectical picture of economic

growth, labour force, social institutions, and power of

monetary value (capital). On parallel line, Political sociology

shown up theories related to role of the State in producing and

supporting economic growth; to change in political fabric

based on economic change; to role of economy in

distributing power among social groups etc. while economic

sociology assumed economic development as established

ground to test such theories.

Sociology of development studies practices and process of

social change by addressing challenges of international or

internal migration, political transformations, changes in

family formation, technological changes, demographic and

LINKING INFRASTRUCTURE GROWTH WITH HUMANDEVELOPMENT: EVIDENCES FROM GUJARAT

Pratham ParekhResearch Fellow, Central University of Gujarat

economic growth (and changes) along with production and

reproduction of inequality due to these changes. Thus, it is

easy to view development at axel of sociological enterprise.

There exists good amount of debates over material and

nonmaterial perception of development and its effect over

society.

The debate of Marx & Weber over origins of capitalism

stimulated generations of sociologists who developed their

own perception over material and non-material (mostly

cul tura l ) determinants of indust r ia l iza t ion and

modernization. Generally, followers of weber strived for

functional equivalents of Protestantism in world (Eisenstadt,

1974). Many other scholars extended Weber's analysis to

understand cultural and organizational factors which are

capable of transforming traditional societies into modern one

through material improvement (Moore, 1966); to grasp the

demand for autonomy (mainly institutional) began in

protestant church and extended to political & economic

regimes (Fulbrook, 1983) ; 'manufacturing social formation'

(Gould 1987); 'world culture' (Meyer, Boli, Thomas, &

Ramirez, 1997) 'disciplinary state' (Gorski 2003) and so on.

The scholars having Marxist perception shows obsession for

materialist models and argues about centrality of power in

support and development of capitalism with potent elites to

bring transformation in economic institutions for personal

benefits (Collins, 1986). The roots of development

capitalism in such theories is perceived to in interstices of

structures created by elites or actors with social powers

(Mann, 1994). While some scholars perceived development

of capitalism is due to conflict among (European) feudal

elites Lachmann (2003). Late generation of development

sociologists focused on relations of countries or international

relation their dynamics to prove domination over global

market associated political interests (like Wallerstein (1979),

Arrighi (1994), Chase-Dunn and Hall (2016), and others).

Such perception proved that success of Europe's

development is directly linked with underdevelopment of

various Asian countries which rests at that capitalist

periphery. Another strand of development sociologists

provide perception over capitalist development, state

formation, war-making and primitive capitalist which gets

affected by imperialism (Emigh, Riley, & Ahmed, 2016).

Scholars working on late capitalism also provides supporting

arguments by linking development with surplus value

extracted from south and usage of military for capital

accumulation in core (Frank, 1967).

Sociology of development of has remained important

component for understanding stratification and inequalities

emerging out from development dynamics. Sociology is

potent discipline grasp inter and intra-national and economic

differences through variety of indicators of human well-

being (Logan, Molotch, Fainstein, & Campbell, 1987;

Jorgenson & Burns, 2007; Shandra & Shor, 2015). By using

quantitative and qualitative methods, this strand of

sociological research highlights humane, spatial, ecological,

climatic and gendered variation in patterns of inequality and

power dynamics (Lobao, 2016).

On parallel grounds, public sociology as novel developing

strands of sociological discipline engages with non-

academic experts or policy framers with application of

sociological perceptions. It is mostly understood as “style” of

sociology rather a method or theory. The term gained

popularity after Michael Burawoy's presidential address (in

2004) at America Sociological Association. Burawoy (2005)

differentiated public sociology with professional sociology

which is domain of academically trained sociologists.

Public sociology focuses on the issues with substantial public

concerns which includes discourses and debates on public

policy, activism, and advocacy, purpose of social movements

and institutional dynamics of civil society. This strand of

disciplines leveraged by its empirical methods and

theoretical approach to grasp debates not just related to “what

is ” or “what has been” in society but to “what might be”.

Public sociology, till now remained normative and political

in its nature, which is essential to grasp phenomenon of

development through public policy perception ( Piven, 2007

&Burawoy, 2014). The study subscribes few of the aspects

of public sociology in order to present normative empirical

evidences of human development and its association with

public policies.

This chapter attempts to outline major theories, perceptions

and arguments of sociology of development and human

development with its mechanism of formulation and

measurement. The chapter also briefly outlines major strands

and argument of development theories along with outline of

the study and basic demographic and geographic information

of Gujarat.

GROWTH VS. DEVELOPMENT

The development discourse after world war – II and claims

that since inception, development discourse is dominated by

concept of INCOME (Drèze & Sen, 1999). Income was

considered as sole measure to human wellbeing. The authors

criticized such measure of national or per capita income as

fault full approach to measure social welfare or human well-

being. Similarly, many scholars has criticized concept of

GDP or GNP to measure human well-being because national

income considers (McGillivray & White, 1993):


1 Many based on changes occurring in mortality and fertility.


Only (registered) monetary exchanges

Inclusion of goods/commodities/services with no or less

social well-being utility e.g. expenditure on nuclear

weapons

Natural resources as free or taken for granted

Freedom, human rights, justice, creativity and leisure as

non-valuable

Distribution of income an even and justifiable

Two major assumptions; first, economic growth “trickle

down” and spreads its benefits across society and second, if

economic growth do not succeed to trickle down, income

disparities is raised and forces to governments to intervene or

regularized in market can considered inconsistent to

understand development (Hicks and Streeten, 1979). In both

way, per capita income is reduced to poverty because neither

assumption can prove that high concentration of income,

unequal growth for prolonged periods has tendency for

growth to spread, nor governments driven by political

interests' shows signs to correct inequalities.

An index of economic performance based groups were

derived on basis of income and assets and weighted

importance of each group's requirement for growth before

devising measure for social welfare (Ahluwalia, Duloy &

Jolly ,1974). Authors through this index weighted out poorest

group with highest requirement of growth. This index was

consistent with Rawls' idea of social welfare. This measure

argued about giving equal weight to income of each member

of society e.g. increase of at least 1% will increase income of

all group by 1%. It makes clear that equal share of income

from total income is most important factor for society's well-

being and such approach of measurement translate GDP

growth into social welfare.

“People are the real wealth of a nation. The basic objective of

development is to create an enabling environment for people

to enjoy long, health and creative lives. This may appear to be

a simple truth. But it is often forgotten in the immediate

concern with the accumulation of commodities and financial

wealth.” - Human Development Report, United Nations

Development Programme, 1990.

Jean Drèze and Amartya Sen (1991) differentiated a growth-

mediated and support-led government intervention and

regulations. According to authors, growth-mediated method

of intervention supports “trickle down” approach (which

means that improvement in private income will create basis

for payment of social services). In such case governments

tends to increase GDP and tax base. While support led

strategies do not focuses on increasing national income but

providing social services directly which can include

guarantees for income, income equalization, health and

education, no matter what level of GDP growth is. As per

authors, there exists no inevitable linkages between national

income and quality of life. Political willingness and public

action translates GDP growth in to human well-being,

poverty reduction and narrowing inequalities.

DEMOGRAPHIC & ECONOMIC GROWTH

PATTERN OF GUJARAT

Clearly, Expansion of human capabilities and wellbeing is

based on economic growth. Economic ecology plays vital

role in determining quality of life. Aggregate incomes

supports and enhance fiscal resources which further allows

more per capita spending over health, education and other

capability indicators. Fortunately, Gujarat was/is able to

translate its economic growth into human wellbeing. Per

capita income of Gujarat is has remained higher than national

average and this contributed in reduction of poverty in the

State.

The population of Gujarat is 6.04 crore comprising 3.15

crore males and 2.89 crore females. Of this, the rural

population stands at 3.47 crore and the urban population 2.57

crore. In terms of percentage, Gujarat accounts 5.97% of the

area of India and 4.99% of the population of India. The

decadal growth rate of state is 19.28% as compared to all

India growth rate of 17.68%. Population density (persons

per sq.km.) in census 2011 works out to be 308. Rural

population constitutes 57.4% of the total population and the

urban population is 42.6%. Persons in age-group 10-19

years (Adolescent) have decreased by 1.55% in census 2011

(19.88%) as compared to census 2001 (21.43%). Persons in

age-group 15-24 years (Youth) decreased by 0.51% in

census. 2011 (19.27%) as compared to census 2001

(19.78%). Persons in age-group 15-59 years (Working age)

have also decreased by 2.63% in census 2011 (60.19%) as

compared to census 2001 (62.82%). Whereas, persons in

age-group 60 years and above have increased by 1.01% in

census 2011 (7.92%) as compared to census 2001 (6.91%).

2 The social welfare function that uses as its measure of social welfare

the utility of the worst-off member of society. The following argument

can be used to motivate the Rawlsian social welfare function. Imagine

a group of individuals who have not yet entered the economy (they are

'behind the veil of ignorance') so do not yet know what position they

will occupy. That is, they may become rich members of the economy or

poor members. If asked what form of social welfare function they

would wish the economy to have an extremely risk-averse individual

would propose the Rawlsian.- Oxford Dictionary of Economics


The Scheduled Caste population in the state is 40,74,447

(6.74%) in 2011 and the Scheduled Tribe population in the

state is 89,17,174 (14.75%) in 2011.

In Gujarat, as per Population Census 2011, the total number

of workers (who have worked for at least one day during the

reference year) is 247.68 lakh. The Work Participation Rate

(WPR) for the Gujarat works out to 41.0 per cent, which is

higher than the national average (39.8%). For the first time

in Census 2011, the marginal workers, i.e. workers who

worked for less than six months in the reference year, have

been sub-divided in two categories, namely, those worked for

less than 3 months and those who worked for 3 months or

more but less than six months. In Gujarat, out of 247.7 lakh

total workers, 203.7 lakh are main workers and the remaining

44.0 lakh are marginal workers. Amongst the 44.0 lakh

marginal workers, 39.3 lakh (89.3%) worked for 3 to 6

months whereas only 4.7 lakh (10.7%) worked for less than 3

months in the state.

The State economy has been measured in terms of the Gross

State Domestic Product (GSDP) at factor cost at constant

prices as well as at Current prices. GSDP estimates over a

period of time reveal the extent and direction of the changes

in the level of economic development. Sectorial

Composition of GSDP gives an idea about the relative

position of different sectors in the economy over a period of

time, which not only indicates the real structural changes

taking place in the economy, but also facilitates in

formulation of the plans for overall economic development.

The present base year for GSDP estimation at constant prices

is 2011-12. As per the Quick Estimates, the Gross State

Domestic Product (GSDP) at Market prices at constant

(2011-12) prices in 2014-15 has been estimated at Rs.

782,820 crore as against Rs. 726,831 crore in 2013-14,

registering a growth of 7.7 percent during the year. Gross

State Domestic Product at Market prices at current prices in

2014-15 has been estimated at Rs. 895,202 crore as against

Rs. 806,745 crore in 2013-14, registering a growth of 11.0

percent during the year. The share of primary, secondary and

tertiary sectors has been reported at 19.4 percent, 42.6

percent and 38.0 percent respectively to the GSVA (Rs. 7,

94,563crore) in 2014-15 at current prices.

Pattern Of Fiscal Allocation For Capability Development

Translating economic growth into Human development and

poverty reduction has remained integral strategy of state's

planning and policy making. Government of Gujarat claims

to give highest priority to development of Social Sectors

which have direct and indirect impact on reduction in poverty

by allocating nearly about by allocating nearly half of

planned budget. From 2002-2007 government has allocated

Rs. 18,090 crore (38% of planned budget), from 2007 – 2012

government has allocated Rs. 53,830 crore (42% of planned

budget) and from 2012-2017 government has increased

allocation upto Rs. 1,58,736 crore which is about 46% of

planned budget (Planning Division , 2016).

Allocation of financial resources is primary ingredient to

strengthen and sustain any kind of development. Since

decade commitment of Gujarat towards and poverty

reduction can be gauged from table-1.

(RS.in Crore) Sector / Year - >

2007-08 2008-09 2009-10 2010-11 2011-12 2013-14 2015-16 2016-17

Education 1070 1366 1600 1900 2599 3850 6700 6900 Health & Family Welfare 565 845 1132 1900 2195 3845 6594 7005 Water Supply 1220 1549 1549 1849 1886 2700 3463 3400 Housing

917

771

1043

1422

1490

5874

3869

3876

Urban Development

1716

2471

2611

2900

3014

3481

8819

9260

Social Welfare

450

612

632

811

996

1450

2094

2750

Welfare of Tribes

210

255

270

405

700

954 1500

1600

Labour & Employment

80

127

119

260

334

891 1183

1233

Women & Child Welfare

197

380

800

936

1264 1300

2450

2600

Total Allocation

6426

8376

9758 12383

14478

24345

36672

38624

Total Planned Budget

16000

21000

23500 30000

38000

59000

79295

85558

% allocated for Social Sector

40.16

39.89

41.52

41.28

38.10

41.26

46.25

45.14

Table-1: Financial Resources Allocated for Social Sector

Source: Author's Analysis on Data Provided by Planning Division, General Administration Department, Government of Gujarat.

LINKAGES OF INFRASTRUCTURE &

C A PA B I L I T Y D E V E L O P M E N T I N

GUJARAT

EDUCATION

With adaptation of MDGs, world has observed exceptional

motivation for universal access to education. Several

countries like Korea, Sri Lanka, Japan, etc. invested heavily

for providing universal access to education which further

resulted into improvement of their human development

index. By 2009, In India, access to education is granted as

fundamental right through Right to Education Act 2009.

Educational services along with educational infrastructure

gained attention of policy framers. Gujarat too has taken

number of policy initiatives and increased investment almost

6 times more in educational infrastructure and services in a

decade i.e. from Rs. 1,070 crore in 2007 to 6900 in 2017.

Various mission mode programmes were/are formulated and

implemented in vigorous manner for enrolment & retention

in schools, linking education with vocations, skill

development, and mapping labour supply & with market

demand for generation of employment & entrepreneurship.

The number of educational institutions imparting primary

education in the State were 43,638 in 2014-15 as against

43,176 in 2013-14. The number of pupils enrolled in these

schools were 91.42 lakh in 2014-15 as against 92.29 lakh in

2012-2013. The number of institutions imparting secondary

and higher secondary education has increased from 10,537 in

2013-14 to 10,811 in 2014-15. Whereas, the number of

students has also increased from 27.02 lakh in 2013-14 to

27.32 lakh in 2014-15.

The process of improving retention and decreasing dropout

rate for elementary level (Std. I - V) is encouraging. The

dropout rate for elementary section has decreased

substantially from 22.30 percent in 1999-00 to 1.97 percent

in 2014-15. Similarly the dropout rate for the standard I to

VII has also decreased from 41.48 percent in 1999-00 to 6.61

percent in 2014-15.

ICT infrastructure with digital learning material also

provided to most of schools, which makes Gujarat a leading

state among states of India. Over 95% schools have access to

electricity enabling 71.23% schools of rural areas and

85.66% schools urban areas to use ICT infrastructure.

In larger picture, Literacy rate of Gujarat is risen upto 79.3%

in 2011 against 69.1% in 2001. Literacy rate of female also

improved significantly in during said decade from 57.8% to

70.7%. Due to this gender gap in education is also reduced to

16.1 in 2011 from 21.9 in 2001 (Directorate of Economics &

Statistics, 2015). This change accredits to universal access to

education attributing 3rd rank of Gujarat in Education

Development Index.

HEALTH

In Gujarat, It is observed that focus is made more on medical

human resources and medical services as compared to

physical health infrastructure. Health infrastructure of state

serves as enabling factor to health care service delivery. In

2015 state had 322 community health centres, 1,300 primary

health centres and 7,710 sub-centres which treated 223.28

lakh outdoor patients and 18.99 lakh indoor patients

(Directorate of Economics & Statistics, 2016). “in 2016 we

are adding 32 Community Health Centres, 130 Primary

Health Centres and 1035 Sub Centres ” – Senior Officer,

Planning Division.

Interestingly, Gujarat successfully linked education with

health through programmes like School Health Check-up

Programme which is largest time bound health programme

covering all children of age 0-18 year. The programme

covered 157.96 lakh children out which 1,25,696 children

were provided referral services, 6,207 children were

provided super specialty care. Another flagship scheme titled

“Chiranjivi Yojana” targeting mortality rate of mothers and

children effectively contributed to improvement in

nutritional status of the poor (table-3). The programme

addresses nutrition, gender and pre-post natal care aspects.

“Availability of hospitals, trained manpower, information

and emergency services has made upto 98.2% of institutional

deliveries among poor and non-poor population which is big

achievement for us…” – Senior Officer, Health and Family

Welfare Department.

Table-2: Percentage of Schools Having ICT Infrastructure

Rural Areas Urban

Gujarat 71.23 85.66

India 21.1 25

Source: Department of School Education and Literacy, Ministry of Human Resouces Development, Government of India

3 Education development Index is constructed by Ministry of Human

Resource Development, Government of India covering 4 components

i.e. Access, Infrastructure, Teachers & Outcomes with about 23

indicators.

4 Gujarat health care service delivery is divided into three parts on the

basis of national common structure i.e. Primary health care basically

provides basic minimum care with more focus on preventive minimum

care with more focus on preventive aspects and public contact.

Curative services are also provided there but they are minimal in

nature. While secondary care is mix of both curative as well as

preventive. Tertiary care is basically meant for high level of curative

care and research studies.

Doctors visited patients


A noteworthy linkage of infrastructure and Health is

observed an intiative called “Khilkhilat”. A dedicated

Khilkhilat Van is provided assist Healthy Mother and Child

(once they are discharged from hospital after delivery) for

arrival to backhome. This transportation service is linked

with “Information Education and Communication” which

give guidence to new mother for handling, mananging and

caring the new born. About 253 vehicles are operational

which accessed by remotest population leading to increase in

awareness about institutional delivery.

As per the India Human Development Report (IHDR) 2011,

Gujarat ranked at 6th position among 18 major states of

India. Continuous increase in fiscal provisions for

healthcare since decade (graph-1) in health care

infrastructure in Gujarat is observed which supports a claim

for improvement in health related human development

indicators and multi-dimensional poverty indicators at large.

has positively affected various sectors health, education and

industries. Assurance of power supply for cooking,

agriculture, education, health care, and industrial production

has boosted up industrial investment, better irrigation, farm

mechanization, virtual learning, medical tourism etc.

“As of December 2015, Gujarat had a total tied up installed

power generation capacity of 24,606 MW (comprised of

12,056 MW 8617 MW and 3,933 MW under private, state

and central utilities, respectively) to meet the energy demand

of the State. Thermal power contributed 18367 MW to the

total installed power generation capacity, followed by

hydropower (779.00 MW), nuclear power (559.00 MW) and

renewable power (4901 MW). Moreover, 100 % of Gujarat's

villages have electricity connections for 24x7 power supply

through programmes like Jyotirgram Yojana.” – Planning

division, Government of Gujarat.

C A PA B I L I T Y D E P R I VAT I O N A N D

DEVELOPMENT IN GUJARAT

Investment of public money is reflection of socio-political

choices. Historically, Gujarat has remained major

contributor India's economic development. Political

Table-3: Health Indicators contributing to capability development

Infant Mortality Rate 2001 2003 2005 2007 2009 2011 2013

Gujarat 60 57 54 52 48 41 36

All India 66 60 58 55 50 44 40

Maternal Mortality Rate 2001 -03 2004 -06 2007 -09 2010 -12 2011 -13

Gujarat 172 160 148 122 112

All India 301 254 212 178 167

1998 -2002 2013 Life Expectancy at Birth (Male) 62.4 69.2 Life Expectancy at Birth

(Female)

64.4 72.5

Source: Planning Commission (now NITI Aayog) & Sample Registration System, Census of India, Government of India

6Patient visited doctors

18 major states are categorized on the basis of geographyand demography

Graph-1: % of allocation for Health Infrastructurein total social sector

POWER SUPPLY

Power sector of Gujarat is most appreciated across the

country. State have achieved 100% electrification. Cutting

across geographies, villages and cities are having

uninterrupted electricity supply. Such crucial achievement

20.00

10.00

16.00

14.00

12.00

10.00

8.00

18.1417.98

15.7915.1615.34

11.60

10.09

8.79

2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2013‐14 2015‐16 2016‐17


commitment for development and efforts of translating

economic development into social development has been

globally applauded. Since decades state has striven to

improve quality of life through holistic planning and

innovative policy formulation & intervention. Such

innovative and proactive policy intervention had improved

social indicators contributing to improvement of human

development and poverty reduction scenario.

“In terms of human development and poverty reduction,

Gujarat aims to become a model State on all fronts of Human

Development and addressing multidimensional poverty.

Every single person in the State of Gujarat irrespective of

gender, caste or creed would, Be literate and healthy; Have

shelter and clean environment; Have drinking water and

sanitation; Be gainfully employed; Be able to live without

fear; Have equal opportunities…

To address specific issues of the underprivileged societies

and areas, State Government has started “Flagship

Programmes” like Sagarkhedu Sarvangi Vikas Yojana,

Vanbandhu Kalyan Yojana, Garib Samruddhi Yojana and 49

Developing Talukas. Besides, various “Mission Mode

Programmes” like Kanya Kelavani, Gunotsav, Krishi

Mahotsav, Nirmal Gujarat, Skill Development, Nirogi Bal,

Bal Sakha Yojana, Balbhog Yojana, Mamata Abhiyan, e-

Mamta, MA, Mukhyamantri Amrutum Vatsalya Yojana,

eMPOWER, Chiranjeevi Yojana, Kaushalya Vardhan

Kendra, Mukhyamantri Yuva Swavalamban Yojana etc. are

also being implemented to improve Human Development

Index of the State….” - Senior Officer, Planning division

FINAL WORD

Observing Gujarat's efforts for development it becomes clear

that there exists a linkage between infrastructure and

capability development which further helps to address

multidimensional poverty. Such linkages are directly evident

in terms of creation and maintenance of certain standards

promoted by political commitment for sustainable capability

development. With well-developed roads, incessant power

supply, schools and health centres in remotest areas, access to

credit, etc. supported by huge public investments has ensured

wellbeing of citizenry in Gujarat. The State now need to

focus more on more diverse and innovative way to address

capability deprivation. For example, addressing special

needs of various social groups like nomadic and primitive

tribes who are not joining educational institutions due to their

cultural setups. Such issues are need to be addressed in more

innovative and strategic manner. However, Gujarat has

successfully proven that economic growth can be translated

into human development and able to partly address issue of

multi-dimensional poverty. Of course, there is evidences and

scope for wider research into this area.

Economic growth indicated by Infrastructure can create

direct and efficient impact on wellbeing and development of

human capabilities. Infrastructure related to social causes

like mortality reduction, increasing schooling and literacy,

generating employment, public amenities, uninterrupted

power and water supply enables to break barriers of physical,

economic, and financial limitations. Investment in

formulating systems or establishing agencies to help needy

people and ensuring access to services can generate more

participant of communities. Reduction in poverty and

building capabilities can be directly addressed by directing

economic systems for larger social good.

This further empowers populace to negotiate, and to benefit

from the world outside their own domain. Access to multiple

options, life chances, and capabilities makes citizenry and

not only state as responsible stakeholder of development.

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ABSTRACT

This paper has highlighted the impact of women participation in MGNREGA.

The national Rural Employment Guarantee Act (MGNREGA) was part of the commitments made by the United

Progressive Alliance (UPA) government in its Common Minimum Programme and came in to force in February 2006-

initially in 200 selected districts. It has been hailed as a landmark and has attracted national and international attention with

its diverse objectives. On the other hand, through providing guarantee employment in rural areas, it also seeks to improve

labor market outcomes. This paper reviews India's approach to social protection since independence and places the NREGA

within the broader social protection discourse. It looks at how gender concerns have been addressed within public works,

and specifically in the NREGA guidelines.

The last section of the paper presents some preliminary findings from online sources .It suggests that the level of women's

participation has been strongly influenced on the demand side by male-female wage differences in the markets, and

between market wages and minimum wages .On supply side, It has been influenced by the commitment of the district

officials of Udaipur, Rajasthan State Government and efficient management along with enhanced savings, an upward

movement of the female market wages; and an increase in men's contribution to household management .Challenges

remain, and these have been noted.

Keywords : Empowerment, Employment, Women Participation, Market Wages.

INTRODUCTION

Women constitute about 48% of the total population of the

country. Participation of women and their increasing

contribution for development of society have been focused in

this paper. Rajasthan is recognized as feudal society with

gender discrimination which is directly related to women's

health, financial status, literacy level and political

involvement. Since 1970s the attempts redefine development

for women and her productive role has increased where

empowerment is necessary.

WOMEN EMPOWERMENT

Women empowerment is the capacity of women for making

and implementing decisions that directly affect their lives.

Empowerment is a process where a group of individuals, here

we are talking about women, show significant important

participation to the society, decision making power, financial

security. Empowerment, which evolved in the 1990s, has

been interpreted in terms of policy making and planning

process. Women empowerment programmes are run by the

organizations of women which are self help groups (SHGs)

with provision of micro finance.

In 2001, The National Policy for Empowerment of women

was adopted in India.

The policy prescription is: Judicial legal systems, decision

making, mainstreaming a gender perspective in development

process and economic empowerment of women which

includes poverty eradication, micro credit, women and

economy, globalization, women and agriculture, women and

industry, support service.

To empower women socially the following factors are

included as, education, health, nutrition, drinking water and

Prerna Bhati Research Scholar, Faculty of Management Studies

Mohan Lal Sukhadia University, Udaipur

Participation and Empowerment of women :A Study of MGNREGA

sanitation, science and technology, right of girl child for the

empowerment of women. International commitments are

convention on all forms of discrimination against women

(CEDAW), convention of right of child (CRC), International

conference on population and development (ICPD+5).

Ministry of Rural Development is implementing various

schemes like Indira Awas Yojona (IAY), Restructured Rural

Sanitation Programme, Accelerated Rural Water Supply

programme (ARWSP) Swarnagayanti Grameen Swarazgar

Yojona (SGSY), by National Social Assistance Programme

(NSAP), the (erstwhile) Integrated Rural Development

Programme (IRDP), the (erstwhile) Development of Women

and Children in Rural Areas (DWCRA) and the Jawahar

Rozgar Yojana (JRY ) These are the schemes having women's

component and the National Rural Employment Guarantee

Act (NREGA) is one of the most progressive legislations

enacted since independence.

MNREGA

Mahatma Gandhi National Rural Employment Guarantee

Act came into force on 2nd February, 2006 in 200 backward

districts of India then after from 1st April,2008 all districts in

country were covered. MNREGA ensure 100 days of

guaranteed security of wage which include skilled and

unskilled labor's statistics on MNREGA shows that women

constitute more than 70% of the beneficiaries.

The adult members of house or any of any of the member

have to submit their identity information to the gram

panchayat, the gram panchayat registers and issue a job card.

The key attributes of the scheme are time bound guarantees,

labour intensive work, decentralized participatory, women's

empowerment, work site facilities, transparency and

accountability through the provision of social audit and the

right to information.

MNREGA is not only simply an employment generation

scheme but also development effort that can take the

economic and social structure of the country.

Employment-generation programmes introduced in India, 1979-2005

Sl. No.

Name of programme Year of

introduction Objective(s)

1 Employment Guarantee Scheme

(EGS) 1979

Providing gainful employment &

creating durable assets

2 National Rural Employment

Programme (NREP) 1980 Creation of supplementary

employment for agricultural

workers

3

Rural Landless Employment

Programme (RLEP) 1983

Improving & expanding

employment opportunities for

rural landless

4

Jawahar Rozgar Yojana (JRY)

1989

Generating gainful employment

for unemployed &

underemployed in rural areas

5

Employment Assurance Scheme

(EAS) 1993

Ensuring efciency in

development delivery system &

generating greater employment

opportunities

6

Jawahar Gram Samridhi Yojana

(JGSY)

1999

Creating demand-driven rural

Infrastructure

7

Sampoorna Grameen Rozgar

Yojana (SGSY)

2002

Integrating EAS & JGSY

8

National Food for Work

Programme (NFWP)

2004

Creating supplementary

employment &

rural community

assets in backward districts

9

National Rural Employment

Guarantee Scheme (NREGS)

2005

Creating rights-based & demand driven

employment opportunities

of 100 days per household in rural areas.


The NREGA has a multiplicity of objectives, and is seen as

an intervention to stimulate local development as much as a

means of social protection. Expected outcomes include:

an increase in employment and purchasing power

women's participation in the workforce

The strengthening of rural infrastructure through the

creation of durable assets

Regeneration of natural resources that provide the

livelihood resource base of the local rural economy.

An increase in productivity

A reduction in distress migration

SOCIAL PROTECTION IN INDIA

In India, social security is mandated by articles 32 of the

constitutions, and supports the idea of universal coverage for

specified situations: The State shall, within the limit of its

economic capacity and development, make effective

provision for securing the right to work, to education, and

public assistance in case of unemployment, old age, sickness,

disablement and other un deserved want.

A two-pronged approach was taken in implementation of this

mandate, through the provision of 'social security' on the one

hand and 'social welfare' on the other. Social security was

designed for workers employed on a regular basis in the

organized sector. It included an employees' insurance, and a

provident fund scheme. The coverage of this scheme has

been gradually expanded over the years. Social welfare was

seen as a women, children, youth, family, scheduled caste

(SCs), scheduled tribes (STs),other 'backward' classes, the

physically disabled and others. While originally designed as

a welfare approach ,this scheme gradually gave way to a

development –oriented and then an empowerment approach.

THE IMPACT OF EGS ON WOMEN

In a seminal study of Udaipur, Rajasthan EGS and women's

participation , it is reported that a higher percentage of

women than men were seen on the sites, that more women

came to work than were registered, that the majority were

between 30-50 years of age, and that they were principally

landless or small or marginal farmers lacking any other work.

The women reported an improvement in family

food/nutrition as a result of the EGS work.

Female employment under the scheme as a percentage of

total employment in person days was reported as 68 percent

in 2012-13. It increased to 69.19 in 2014-15

Micro studies have shown that wealth in the form of total

assets was very strongly and inversely related to participation

in EGS for women. More women from households with low

or no assets participated in the scheme than from land-

owning households (Krishnaraj, 2003).

GENDER AND THE NREGA

The NREGA, with its guarantee of 100 days of unskilled

work for every household, has been envisaged as a gender

sensitive scheme. It allows for crèche facilities on work sites,

insists that one-third of all participants are women, do not

discriminate between the sexes. However, a gendered

analysis of the programme is necessary to make rural assets

generation an inclusive process and address the crises

underlying an increasing feminization of poverty in

India. The main way in which social protection seeks of be

'gender sensitive' - and this is true also of the NREGA –it is to

suggest that a certain percentage of beneficiaries must be

women.

While providing employment, priority shall be given to

women in such a way that at least one – third of the

beneficiaries shall be women who have registered and

requested for work under the scheme. (NREGA, Schedule

II,Section 6:19)

Given that agriculture is increasingly dependent on women

cultivators, as more men move out of agriculture, the

availability of NREGA work is expect to be especially

beneficial to women. Today 53 per cent of all male workers

but 75 per cent of all female workers, and 85 per cent of all

rural female workers, are in agriculture. Women constitute 40

per cent of the agricultural workforce and this percentage is

rising. Also an estimated 20 per cent of rural household are de

facto female-headed, due to widowhood, desertion, or male

out-migration.

PRELIMINARY FINDINGS

As the data obtained from the online source Employment

Generated During the Financial Year 2012-2013, 2013-2014

and 2014-15 where job card issued, provided employment

and cumulative persondays generated are given category

vise ie SC,ST,Other and women

Table (given Appendix) are according to financial year 2012-

2013, 2013-2014 and 2014-15 where the ratio of women out

of total is more compare to other. Tshis show that women are

being more benefited through such schema and being

empowered socially and financially

Table 1. Shows 68 percent of women participation compare

to men .Table 2. Show 68.09 percent of participation and


table 3. Show 69.19 percent of participation of women which

show increase of women participation that lead to

empowerment of women. Table 4 show the progress of women

participation out of total is increased from 2013 to 2015.

CONCLUSION

Public policy and public works in India have generally tried

to include women as a percentage of beneficiaries, but have

not paid enough attention to gender sensitive design. The

NREGA in its design in its design has attempted some gender

sensitivity. Udaipur district have being found progressive

percentage of women participation compare to men. The

employment schema here is benefited to empower the

women which are from tribal belt.Women in such area are

hardly having their own position in society , such schema are

found use full to empower them Overall, preliminary

findings confirm that the NREGS has the potential to

stimulate local development, if the management and delivery

are good; and that women's weak position in the labour

market has been greatly helped.

Appendix: Table 1

State: RAJASTHAN District: UDAIPUR(2012-2013)

1 2 3 4 6 7 9

10 11 12 A b c d

Cumulative No. of HH

demanded

employment

Cumulative No. of HH provided employment

No. of HH

working

under NREG

A during the report

ing mont

h

a b c d e

S.No Block

Cumulative No. of HH issued jobcards

Cumulative Persondays generate

Cumulative No. of

HH complete

d 100 days

No. of HH

which are

beneficiary

of land reform/IA

Y

No. of Disabled

beneficiary individualsSCs STs Others Total SCs STs Others Total Women

1 Jhallaara

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2 Kurabad

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3 Lasadia 542 16806 2872 20220 9719 9017 3497 7249 330151 30090 367490 228627 489 0 2

4 Phalasiya

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 Rishabhdeo 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 Sayra

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7 Semaari

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8 Kotda

128

35406 6154 41688

26584

24569 6284

856

1004695

102857

1108408

605722

1832

1

3

9 Kherwara

1213

56165 8782 66160

38040

36255

13914

19031

1195653

157368

1372052

1027014

860

102

9

10 Girwa

1890

31446 18282 51618

25358

24373

8189

46466

1085294

340924

1472684

1039688

2770

0

27

11 Gogunda

3485

21836 18390 43711

29442

28515

12014

144679

1070374

527740

1742793

1183365

3366

2

15

12 Jhadol

704

35239 8158 44101

29856

28553

11953

15176

1240759

196352

1452287

917129

2756

8

8

13 Badgaon

2284

10522 9717 22523

3731

3361

989

10710

106998

46469

164177

139295

211

1

2

14 Bhinder

3643

5738 34419 43800

14417

13271

5064

53434

114529

482661

650624

505241

946

2

8

15 Mavli

4659

9577 21493 35729

5067

4237

1300

26859

63751

81812

172422

150019

217

0

1

16 Sarada

1284

40939 11857 54080

30879

29524

10865

27162

1320772

229683

1577617

1077768

2931

7

33

17 Salumber

2244

25337 14565 42146

15621

14498

4135

37690

546271

96109

680070

483173

1072

16

11

Total

22076

289011 154689 465776

228714

216173 78204

389312

8079247

2292065

10760624

7357041

17450

139

119


Table 2

UDAIPUR (2013-2014)

1 2 3 4 6 7 9

10 11 12 a b c d


demanded

employment

(Till the reportin

g month)


provided

employment

(Till the reporti

ng month)

No. of HH

working under NREGA during

the reporting month

a b c d e

S.No Block

Cumulative No. of HH issued jobcards (Till the reporting

month)

Cumulative Persondays generate(Till the reporting month)

Cumulative No. of

HH complete

d 100 days (Till

the reporting

month

No. of HH

which are

beneficiary

of land reform/IA

Y

No. of Disabled beneficia

ry individua

ls SCs STs

Others

Total SCs STs Others Total Women

1 Jhallaara 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2 Kurabad 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3 Lasadia 544 16816 2875 20235 8575 7594 1750 5267 231606 26029 262902 153348 254 0 3

4 Phalasiya 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 Rishabhdeo 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 Sayra 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7 Semaari 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8 Kotda

128 35573 6156 41857 20806 19224 3709 682 598851 52320 651853 372950 1015 1 1

9 Kherwara 1213 56176 8781 66170 38952 36697 10073 17142 1014016 100494 1131652 826005 453 88 11

10 Girwa 1850 31367 17581 50798 23276 21899 9598 29360 1056298 273808 1359466 959943 4073 0 31

11 Gogunda 3441 21507 17940 42888 27149 25894 9614 113417 776331 369050 1258798 860895 1680 2 19

12 Jhadol 703 35254 8146 44103 25603 23891 6270 8121 793667 116912 918700 586794 1017 7 7

13 Badgaon 2284 10525 9727 22536 3495 3018 1383 9204 76520 33251 118975 99225 153 1 2

14 Bhinder 3645 5758 34414 43817 11814 10422 4311 38282 78202 312991 429475 330565 623 2 5

15 Mavli 4661 9577 21492 35730 4227 3423 1327 19869 49443 67350 136662 121569 193 0 2

16 Sarada 1288 41077 11979 54344 28811 26803 12151 23153 989513 197474 1210140 782715 2251 12 31

17 Salumber 2244 25336 14563 42143 13838 12476 4305 28608 439043 98051 565702 381797 1030 15 8

Total 22001 288966 153654 464621 206546 191341 64491 293105 6103490 1647730 8044325 5475806 12742 128 120


Table 3

Employment Generated During The nancial Year 2014-2015

1 2 3 4

6 7

9

10 11 12 a b c d

Cumulative No. of HH demanded

employment (Till the

reporting month)

Cumulative No. of HH provided

employment (Till the

reporting month)

No. of HH

working under NREGA during

the reporting

month

a b c d e

S.No Block

Cumulative No. of HH issued jobcards (Till the reporting month)

Cumulative Persondays generate(Till the reporting month)

Cumulative No. of HH completed 100 days (Till the

reporting month

No. of HH which are

beneficiary of land

reform/IAY

No. of Disabled

beneficiary individuals SCs STs Others Total SCs STs Others Total Women

1 Jhallaara

0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

2 Kurabad

0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

3 Lasadia 457 15716 2932 19105 11835

11155 7194

9129 417166 57478 483773 278211 460 0 4

4 Phalasiya

0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

5 Rishabhdeo 0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

6 Sayra

0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

7 Semaari

0 0 0 0 0

0 0

0 0 0 0 0 0 0 0

8 Kotda 128 35641 6200 41969 21802

19691 12054

445 630273 53618 684336 389828 648 1 3

9 Kherwara 1213 56179 8786 66178 36163

33519 22617 17725 1094518 110127 1222370 888656 734 82 11

10 Girwa 1847 31352 17492 50691 20483

18714 10030 23681 686903 172824 883408 652428 1612 1 35

11 Gogunda 3441 21523 17940 42904 24681

23184 16235 89538 667328 267937 1024803 717566 1292 2 23

12 Jhadol 700 35215 8103 44018 24561

22226 13408

6478 854880 110637 971995 622584 1361 3 5

13 Badgaon 2285 10529 9730 22544 4280

3731 1788 14064 112010 46188 172262 144331 363 1 3

14 Bhinder 3644 5757 34401 43802 11241

9970 5785 37004 90668 306275 433947 331689 532 1 7

15 Mavli 4665 9586 21519 35770 6943

5418 2753 48270 106123 119935 274328 241486 797 0 6

16 Sarada 1289 40930 12038 54257 27997

25399 15975 24043 982145 184103 1190291 793102 1667 10 31

17 Salumber 2329 26526 14578 43433 14391

12575 7218 28094 415643 92604 536341 387163 726 16 9

Total 21998 288954 153719 464671 204377

185582 115057 298471 6057657 1521726 7877854 5447044 10192 117 137



Table 4 (Rajasthan)

Progress FY 2015-2016

FY 2014-2015

FY 2013-2014

FY 2012-2013

Approved Labour Budget[In Lakhs] 2116.95 2071.1 2334.66 2225.08

Persondays Generated so far[In Lakhs] 570.86 1684.98 1838.54 2202.38

% of Total LB 26.97 81.36 78.75 98.98

% as per Proportionate LB [Click here for Average Performance of levels above] 49.37

SC persondays % as of total persondays 18.85 19.71 19.85 19.67

ST persondays % as of total persondays 33.11 26.38 26.17 24.23

Women Persondays out of Total (%) [Click here for Average Performance of levels above] 69.21 68.25 67.76 68.95

Average days of employment provided per Household [Click here for Average Performance of levels above]

25.22 45.73 50.86 52.25

(i)Average PersonDays for SC HouseHolds 23.87 45.01 50.59 52.44

(ii)Average PersonDays for ST HouseHolds 29.05 50.21 56.17 55.19

Total No of HHs completed 100 Days of Wage Employment 6,450 2,81,019 4,46,095 4,21,730

% payments gererated within 15 days [Click here for Average Performance of levels above] 49.61 40.67 14.95 53.08

Total Households Worked[In Lakhs] 22.63 36.84 36.15 42.15

Total Individuals Worked[In Lakhs] 29.5 51.39 50.21 57.89

% of Men Worked 33.55 37.66 37.55 37.22

% of Women Worked 66.45 62.34 62.45 62.78

% of SC Worked 18.71 19.13 19.12 18.91

% of ST Worked 32.82 27.15 27.07 25.61

% of Disabled Persons Worked 0.09 0.08 0.06 0.06


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ABSTRACT

The contemporary organizations are motivated by racial, religious and socio-economic diversity, but, awareness regarding

a new diversity has begun to creep in corporate as well academic India, called Multi-Generational Diversity. There are two

major generations working side by side across Indian educational institutions, today, the Generation X and the Generation

Y. Every generation has its own attitude and style, which leads to frequent misunderstandings among them. The better each

generation understands the other, the better they will work together. The study explores some issues, both positive and

negative, which are inherent in managing an intergenerational workforce at academic places of work. The study has

examined the potential generational and demographic differences on several work related beliefs, using the data collected

primarily through a structured questionnaire from employees, currently, working in various institutes. The result of the

survey has yielded important and valuable insights into the landscape study of multi-generational workforce in the

educational institutions of India.

Keywords: Generation, Age Groups, Employees, Diversity, Generational Differences.

INTRODUCTION

Currently, educational institutions around the world are

facing demographical and societal changes, economic

landscape alterations, globalization, and the ongoing rise of

the knowledge worker, which are leading us to a workplace

where members of four generations sit side-by-side, for the

first time. For academic workplaces of all sizes, this is both

an opportunity and a challenge. Each individual brings

deeply rooted cultural experiences based on state or location,

caste, religion, beliefs, norms, ethics, behavior and attitudes

to the workplace.

A simple definition of generation is a group of individuals

born and living at the same time, with the same approximate

age having similar ideas, attitudes and problems. As per a

sociologist's view, 'generation' is viewed as a group of

individuals of similar ages whose members have

experienced a noteworthy historical event within a set period

of time and hence the socio, political and cultural

environment during the formative and growing years

influences and shapes their attitudes and beliefs forming a

collective world view.

The work environment of an academic workplace and its

inhabitants are very different from that of businesses and

corporations. Although many of the problems may be the

same, they will manifest themselves differently, thereby

requiring different solutions. Researchers generally agree

that two generations currently dominate the academic

workplaces in India: Generation X and Generation Y. People

who were born between the years 1965 & 1984 constitute

Generation X, while people who were born between the years

1985 & 2004 constitute Generation Y.

Generation X are called Baby Bust generation because of

their small size, as relative to the generation of Baby

Boomers. They aspire to achieve a balance between work and

life, than previous generations. They are strongly loyal

towards their family and friends. They value continuous

learning and skill development. They have strong technical

skills, are results focused and are ruled by a sense of

accomplishment. They are not intimidated by the authority

figures and feel free to question them. The absence of money

might lose their motivation but it is not the sole motivator for

them. They are pragmatic, self-reliant and adaptive to

changes and like to receive feedback.

Generation Y are also called the Millennial and the Digital

Generation because they have been shaped by parental

excesses, computers, and dramatic technological advances.

A STUDY ON THE IMPLICATIONS OF MULTIGENERATIONALDIVERSITY IN ACADEMIC WORKPLACE

ParulStudent

Mahrishi Dayanand University, Rohtak

They value team work and collective action as they embrace

diversity. They desire flexibility, freedom and a more

balanced professional and personal life. They tend to

overlook differences among people and treat everyone in the

same manner. They are deeply committed to authenticity and

truth-telling. They believe to live in a "no-boundaries" world

where they can make short-term decisions and expect the

outcomes to be rather grandiose. It is the most confident

generation, who purports to be entrepreneurial.

The two major generations of personnel bumping into one

another in higher education represent the most diverse age

composition in academe ever. They bring baggage outlined

and described previously into every department and meeting

they attend, which can affect the emotional intelligence,

especially interpersonal relationships, of everyone and,

ultimately, their job satisfaction and productivity (Fisher-

Bando, 2008).

Among the various generational differences, there seem to be

at least a half dozen that bubble to the top as potentially the

most common sources of conflict: dress/appearance, work

hours/work ethic, technology, expectations for advancement,

communication, and respect/professionalism. So, at the time

new generations join the workforce, others should try to

adjust and remain flexible with their values, believes and

behavior. On the other hand, the new talent should respect

and assimilate the older workforce. As society continues to

adapt to the prevalence of a multi-generational workforce, it

is essential that academic institutions proactively address

this change and apply the same inclusive philosophies they

often exhibited with regard to other forms of diversity, to the

generational diversity trends.

LITERATURE REVIEW

For perhaps the first time in recorded history, academic

markets in the 21st century are presented with some real

challenges and opportunities to organize members of

different generations and address their issues of talent

engagement, leadership development and people

management.

Iden (2016) conducted a study in organizations employing

more than 500 employees, to explore various strategies used

by the managers of Franklin County, Ohio State, USA for

managing multi-generations. To analyze the data, a psycho-

phenomenological method called, van Kaam was used which

separated the collected data. The four major themes which

emerged out of them were generational cohort differences,

required multigenerational managerial skills, most effective

multigenerational management strategies and least effective

multigenerational management strategies.

Becton et al. (2014) in their empirical research provides

mixed evidence for generational differences in important

values and attitudes. The study extends generational effects

research by examining differences in actual workplace. The

correlations among age, longest number of months spent in a

single job, and number of jobs held in last five years were

computed using Pearson's product moment correlation. Their

results suggest that organizations should be cautious in

taking the advice of some scholars to implement HR

strategies that recognize the unique values and

characteristics of each generation versus general strategies

applied to all generations of employees.

Berk (2013) published an article describing four generations

in academia-Traditionalists, Baby Boomers, Generation X

and Net Generation. He examined the extent to which

generational bullying is prevalent in higher education and

considered the implications of various generational issues

for training and developing faculty and other staff members.

It was found that, there is a severe need for university heads

and other developers of faculty to take the responsibility and

address multi-generational issues by organizing workshops,

seminars and training programs, etc. They must create an

academic workplace where employees and students of all the

generations can prosper together, but being individually.

Hornbostel et al. (2011) introduced a research paper whose

primary goal was to highlight the techniques for better

targeting the needs of specific generations and life-stages,

while honing engagement practices that may formally have

been age-independent. In the research paper, the differences

were referred using two terms: “Life-stage” and

“Generation”. The study found reverse mentoring as a

tangible way companies can better utilize their multi-

generational workforce, increase engagement between

workers, both young and old, and bridge generational gaps.

Platteau et al. (2011) tried to link the concepts of generation

and intergenerational conflict to the concept of

organizational culture for which a survey was conducted

among civil servants from a local government. As per the

research paper, differences between age groups must not

merely be considered as a result of age-effects but also from

genera t ion-e ffec t s . A genera t iona l perspec t ive

acknowledges that people change as they grow older and

experience successive life course transitions, but also

stresses the fact that the concept of generations is fruitful for

understanding and interpreting differences between age

groups.



Hoff (2010) aimed at getting more insight in the work

preferences of the youngest generation (born after 1985) and

the differences with work preferences of older generations.

The results showed that there were two types of differences.

On the one hand differences in kinds of preferences,

expressed by different operations of the constructs. This was

the case for the constructs; 'challenge', 'task significance',

'transformational leadership' and 'promotion opportunities'.

On the other hand differences in the levels of preferences

were found which indicate that some aspects were preferred

more or less by the youngest generation.

Meriac et al. (2010) examined the differences across three

generational cohorts (Millennials, Generation X, and Baby

Boomers) on dimensions of the work ethic construct using

the multidimensional work ethic profile (MWEP).

According to the study, generational cohorts develop

similarities in their attitudes and beliefs based on shared life

experiences. As a result, generational cohorts have

identifiable characteristics on which they differ. The large

differences in several dimensions of work ethic may

contribute to misunderstandings, differences in work-related

expectations, or other sources of conflict among members

from different cohorts.

MetLife Mature Market Institute (2009) conducted a study,

according to which, when employees derive a sense of

meaning and fulfillment from their work, they tend to

experience positive personal outcomes as well. Some

important questions addressed in the study were what is

employee engagement and why is it important, how can

employers recognize employee engagement, how does age

affect employee engagement, what are drivers of

engagement for employees in different generational groups

and what can employers do to maximize employee

engagement.

Fraone et al. (2008) discovered a new term called

'generational competence', which describes the adaptations

that organizations must make in order to meet the diverse

needs of the four generations in today's workforce and

marketplace. A generational perspective enables managers to

leverage employee uniqueness as a source of learning,

productivity, and innovation and to create and role model a

shared vision of positive co-worker relationships.

Leahy et al. (2008) conducted a research to establish

employee preferences in two areas: workplace motivational

needs and reward and recognition preferences. Its findings

that some common motivational needs are shared across

workforce cohorts may challenge a rethinking of the

perception that divisive generational differences may exist

within the workforce.

Parker (2007) planned a study to look at generational

differences with respect to participant's perceptions of work

and career. Generational differences represent the set of

values that people within the same age group possess. The

results showed that while there is no significant difference in

each generation's perception of their work life balance, there

are differences in the beliefs and behaviors with respect to

work life balance.


To understand in depth how the presence of multiple

generations impacts the employees at academic workplaces,

both qualitative methodology and quantitative techniques

have been used. The objectives of the study are:

1. To study the relationship between demographic

variables and types of generation currently working in

academic workplaces.

2. To determine the factors affecting academic workplace

culture and types of generation.

3. To identify the effective methods for managing an

intergenerational workforce at academic workplace.

RESEARCH DESIGN

The overall strategy been chosen is Hypothesis Testing

Research, under which Non-experimental Hypothesis

Testing Research has been selected. Thus, the hypothesis

statements framed for the study are:

H01 : There is no significant relationship between

Generation X and Generation Y on the basis of factors

affecting academic workplace culture

H02 : The methods for managing an intergenerational

workforce at academic workplace are insignificant of

Generation X and Generation Y

METHOD OF DATA COLLECTION

The primary sources used for this study are discussion

Interviews with the employees and data collected through a

structured questionnaire. The questionnaires were

distributed personally as well as through Google Forms.

Design of questionnaire. The questionnaire instrument of

present study is divided into three broad categories. The first

category represents the demographic variables. The second

part deals with statements intended to find out the impact of

Generation X and Generation Y on factors affecting

workplace culture and some basic questions. The last

category includes employee feedback on the effectiveness of


several methods in managing an intergenerational academic

workforce. In the questionnaire, the types of variable being

used are on the basis of unit of measurement i.e. categorical

polytomous variables and continuous variables. And, to

assess the responses for various statements included in the

questionnaire, Likert's Five-Point Scale has been used.

SAMPLE DESIGN

The sample population for the study is approximately 500

employees (or professors) of different academic institutions.

In order to obtain the information required to meet the

objectives of the study, a sample of 112 employees were

surveyed. These employees are from different institutions

like management, arts, science, law, and journalism etc.

To carry out this study, Non-probability sampling technique

is used. Under the non-probability, the convenience and

snowball sampling techniques have been used.

DATA ANALYSIS METHOD

SPSS &Ms-Excel were used extensively to analyze the data

in the form of SPSS tables, percentages and numerical forms.

LIMITATIONS OF THE STUDY

The study represents only a small percentage of the

employees at academic workplaces. As all the respondents

were from one location only i.e. Delhi. Therefore, the study is

not truly indicative of employees at other educational

institutions.

DATA ANALYSIS & INTERPRETATION

In order to measure the reliability of the scale used in this

study, an internal consistency measure called Cronbach's

Alpha has been used. In table 1, since the value of Cronbach's

Alpha is greater than 0.7, it means that the items of the scale

used have relatively high internal consistency with

coefficient of alpha 0.937.

The crosstabs has been used to study the relationship

between demographic variables (i.e. gender, marital status,

highest educational degree and current role) and types of

generation (i.e. Generation X and Generation Y) currently

working in academic workplaces. In table 2, patterns have

been detected that might indicate relatedness between the

study variables.

Table 2

Relationship between Demographic Variables and the

Type of Generation

Generation Generation Total X Y

Gender Male 33 19 52

Female 33 27 60

Total 66 46 112

Marital Status Single 10 20 30

Married 51 18 69

Divorced 05 08 13

Total 66 46 112

Highest Post Graduation 19 27 46

Educational Doctoral 38 10 48

Degree Other 09 09 18

Total 66 46 112

Current Role Professor 29 04 33

Associate 23 14 37

Professor

Assistant 14 28 42

Professor

Total 66 46 112

Table 1


Cronbach's

Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.937 .935 22

Out of 112 respondents, majority of the respondents i.e. 60

are females. And, male respondents belonging to Generation

X are significantly higher (i.e. 33) as compared to those

belonging to Generation Y (i.e. 17). Majority of the lecturers

are married with 51 belonging to Generation X and 18

belonging to Generation Y. And, as compared to Generation

X, single and divorced lecturers belong majorly from

Generation Y. Our respondents constitutes a fairly similar

number of post graduates and doctorates, with majority of

doctorates (i.e. 38) belonging to Generation X and majority

of post graduates (i.e. 27) belonging to Generation Y.

Furthermore, academic workplaces have highest number of

assistant professors, majorly belonging to Generation Y.

And, most of the professors and associate professors belong

to Generation X.

H01 : There is no signicant relationship between

Generation X and Generation Y on the basis of

factors affecting academic workplace culture

resentment) between workers of different generations,

quality of work due to variety of generational perspectives,

communication breakdowns and level of seriousness with

mean scores of 3.52, 3.48, 3.38, 3.33, 3.29 & 3.18,

respectively. They think that team work with mean score

3.02, is the least important factor which occurs due to

generational differences, as it involve workers from

different generations who work together effectively in order

to attain their pre specied mutual goals.

In contrast to this, according to Generation Y lecturers i.e.

who were born between years 1985 & 2004, quality of work

due to variety of generational perspectives with a mean score

of 3.46, occurs most in an academic workplace. Then,

reliance on technology, conicts (or resentment) between

workers o f d i ffe ren t genera t ions , t eam work ,

communication breakdowns, inter-generational learning

and level of respect follows it with mean scores of 3.30, 3.28,

3.11, 3.11, 2.96 & 2.70, respectively. And the least

signicant factor occurring at an academic workplace

believing generational differences as the reason is the level

of seriousness with a mean score of 2.67.

Table 3 shows the value of computed t statistic also. It

measures the size of difference in relation to the variation of

our sample data. The positive t value indicates that the mean

for the rst group i.e. Generation X employees, is

signicantly greater than the mean for the second group i.e.

Generation Y employees. While, negative t value indicates

that the mean for Generation Y employees is greater than the

mean for Generation X employees.

As per table 3, the signicance level for all the factors, except

second, sixth and eight factors, is greater than our alpha

value, 0.05. Therefore, we partially accept null hypothesis

that the factors affecting academic workplace culture are

insignicant of Generation X and Generation Y. Thus, the

factors which signicantly vary from generation to

generation are effectiveness of inter-generational learning,

levels of respect and levels of seriousness. According to the

respondents, workers from different generations learn from

one another, they feel that coworkers from other generations

do not respect them, and take them less seriously.

The table 4 shows us the mean scores, t values and

signicance levels of Generation X and Generation Y

respondents with respect to the impact on them from

methods for managing an intergenerational workforce at

academic workplace.

To test this hypothesis statement, a parametric test called

Independent samples t-test has been used. We have

compared the means of two independent groups i.e.

Generation X and Generation Y employees at academic

workplaces in order to determine whether there is statistical

evidence that the associated population means are

signicantly different.

The table 3 shows that according to Generation X lecturers

i.e. who were born between years 1965 & 1984, the highest

factor which occurs in an academic workplace due to

generational differences as a primary reason for occurrence

is, the level of respect with a mean score of 3.56. According

to them, the employees feel that coworkers from other

generations do not respect them. It is then followed by inter-

generational learning, reliance on technology, conicts (or

Table 3

Analysis of Factors Affecting Academic Workplace Culture

with respect to the Type of Generation using Independent

Samples t-Test

Factors Type of Mean t-value Sig. Generation

Quality of work Generation X 3.33 -0.493 0.623

Generation Y 3.46 -0.498

Inter-generational Generation X 3.52 2.521 0.013

learning Generation Y 2.96 2.424

Team work Generation X 3.02 -0.421 0.675

Generation Y 3.11 -0.429

Communication Generation X 3.29 0.742 0.460

breakdowns Generation Y 3.11 0.749

Conicts Generation X 3.38 0.378 0.706

(or resentment) Generation Y 3.28 0.374

Level of respect Generation X 3.56 3.782 0.000

Generation Y 2.70 3.662

Reliance on Generation X 3.48 0.794 0.429

technology Generation Y 3.30 0.770

Level of Generation X 3.18 2.250 0.030

seriousness Generation Y 2.67 2.207

Note : Signicant at 5 % level

H02 : The methods for managing an intergenerational workforce at

academic workplace are insignicant of Generation X and

Generation Y



creating intergenerational mentoring programs, introducing

training on multigenerational issues and offering exible

learning opportunities are insignicant of Generation X and

Generation Y.

FINDINGS

Today, workplaces have employees from multiple

generations and the varying ideas, values, and experiences

affect the workplace. The academic institutions are reaping

the benets of diversity provided by the workers of different

generations as multi-generational workforce is prevalent in

every workplace now. The variability in age changes the

interpersonal dynamics in the academic work environment.

A careful synthesis of the responses revealed the following

results:

Generation Y constitutes of more female respondents as

compared to the male respondents. While, Generation X

includes equal number of males and females.

The respondents who were single and belongs to Generation

Y are twice of single respondents belonging to Generation X.

46% of the respondents who were born between years 1965

& 1984 are married while only 16% married respondents

were born between years 1985 & 2004.

The proportion of respondents who were born between years

1965 & 1984, and possess post-graduation as their highest

educational degree is smaller in comparison to those born

between years 1985 & 2004.

Most of the respondents who belong to Generation X are

designated either as Professors or as Associate Professors in

academic institutions. While, Generation Y employees are

majorly working as Assistant Professors.

The factors which are signicant of Generation X and

Generation Y employees in academic workplaces are

effective learning, respect and seriousness.

According to the respondents of our study, the employees at

academic workplaces think that workers from different

generations effectively learn from each other, they feel that

coworkers from other generations do not respect them and

also the employees take coworkers from other generations

less seriously.

The effective methods for managing an intergenerational

workforce at academic workplace which are signicant of

Generation X and Generation Y are collaborative discussion,

decision-making or problem-solving, performance

management systems addressing each generation, and

creative rewards and recognition programs.

Table 4

Analysis of Workforce Management Methods with respect

to the Type of Generation using Independent Samples t-Test

In table 4, according to the Generation X lecturers, the most

successful factor for managing an intergenerational

workforce is creative rewards and recognition programs

with a mean score of 4.32. It is then followed by exible

learning opportunities, collaborative discussion, decision-

making or problem solving sessions, performance

management systems addressing each generation and

intergenerational mentoring programs having mean scores

4.21, 3.97, 3.76, & 3.47, respectively. And, the least

successful factor is the introduction of training on

multigenerational issues which has a mean score of 3.27.

Whereas, for lecturers belonging to Generation Y, the

exible learning opportunities should be improved rst for

intergenerational workforce as it has the highest mean score

of 3.83. And, performance management systems addressing

each generation should be administered in the last as it has

the lowest mean score of 3.13.

In table 4, since the signicance level for rst, fth and sixth

method is smaller than our alpha value, 0.05, and the

signicance level for second, third and fourth method is

greater than our alpha value, 0.05. Therefore, we partially

accept null hypothesis and partially reject it. Thus, the

methods for managing an intergenerational workforce at

academic workplace such as collaborative discussion,

decision-making or problem-solving, performance

management systems addressing each generation and

creative rewards and recognition programs are signicant of

Generation X and Generation Y. While the methods such as

Methods

Collaborative discussion, decision-making or problem-solving

Creating intergenerational mentoring programs

Introducing training on multigenerational issues

Offering exible learning opportunities

Performance management systems addressing each generation

Creative rewards and recognition programs

Note : Signicant at 5 % level

Type of Generation

Generation XGeneration Y






Mean

3.973.24

3.473.28

3.273.15

4.213.83

3.763.13

4.323.72

t-value

3.1313.076

0.8520.851

0.5500.548

1.735 1.743

2.8022.696

3.3553.276

Sig.

0.002

0.396

0.583

0.086

0.006

0.001


ABSTRACT

The societal contextual elements have been observed as possessing the enormous power in deciding the career cycle of men and

women alike across sectors of economy and career determination in academia is no exception as such.The existing literature

points towards the prevalence of the individual, organizational and cognitive contexts of the faculty's career growth and

progression in developing nations.The resource based view of faculty's accumulation of proficiencies regard the scenario as

determined by individual differences, own drives to accumulate and orient the energies towards the acquisition of the

capabilities that are worthwhile in academia and might prove a lifelong asset with regard to academic profession.The existing

studies espouse the prevalence of the lateral and direct impact of the surrounding social structures on the faculty's abilities to

perform or under perform in the environments or the work climates that are made available to them across their current

employment position.The existing academic attempts at understanding the crucial role of work climate and campus in faculty

success have been concentrated across select parameters yet no comprehensive research has ever been conducted across

publically and privately funded educational institutions in perspective of developing countries especially India.

Keywords : Societal Contextual Faculty’s Carrier, Academia

UNDERSTANDING CONTEXTUAL

ANTECEDENTS

The academia's sense of satisfaction at work place is not

aloof from the influences that are more contextual(GAPPA,

Austin, 2009) rather than the chance factors. The academic

careers have been observed as an outcome of the social

interactions which are unique and characteristic of

individual's unique and particular situations and surrounding

conditions that are occasionally uncontrollable for each and

every concerned individual (MAYRHOFER, 2007). Such

contextual elements have been observed as possessing the

enormous power in deciding the career cycle of men and

women alike across sectors of economy and career

determination in academia is no exception as such.

PROBLEMS OF INDIAN ACADEMIA

The academia in developing nations is under severe pressure

from the societal intentions to deplore the profession. The

Indian academic institutions like their global counterparts

are being observed to negate the academics and academic

career as a not so prized possession and strategy. The existing

literature further points towards the dominance of the

contrast between the individual attributes and the unionized

aspirations in diminishing the personal competencies and

foster an environment of collectiveness. The Ideal work force

development practices (SMYLIE, Konkol, n.d.) have been

observed to focus on the aspects of ideal and talented faculty

recruitment and sustenance yet the work place climate does

impact the perception formation with regard to bias across

teaching experiences, research experiences and the service

related contributions. The work place related bargaining and

collectivism (JULIUS, Di Giovanni, 2016) is in fact

impacting the realization of talents and capabilities across the

academic work place in diverse patterns and contexts.

INDIVIDUAL CONTEXTS

The faculty's work experience, task mastery, job history and

individual's professional capital as well as professional

vitality are largely observed as a result of one's own efforts

and aspirations. As per the “human resource management”

Pooja KalraResearch Scholar, Jagannath University, Jaipur

Dr. Nidhi Gupta HOD, BBA Department, Tecnia Institute of Advanced Studies, New Delhi

THE CONTEXTUAL ANTECEDENTS OF UNIVERSITY FACULTY'SWORK RELATED PERCEPTIONS AND SATISFACTION

SENSE-MAKING IN NCR (AN AGE BASED PERSPECTIVE)

paradigm, the faculty's internal resources and competencies

are accumulated and acquired across their entire career life

span. The “resource based view” of faculty's accumulation of

proficiencies regard the “scenario” as determined by

individual differences, own drives to accumulate and orient

the energies towards the acquisition of the capabilities that

are worthwhile in academia and might prove a lifelong asset

with regard to academic profession. The “human capital

perspective” regards the faculty's education, accumulation of

experience, learning ability and training as developing a state

of human capital in form of faculty. Such a state is further

speculated to impact the respective career outcomes across

the faculty in terms of internal competitiveness, external

image and competitiveness as well as a sense of career

related satisfaction and pride.

The recent focus of academic research on the “factors” and

the “contexts” influencing the Indian faculty's accumulation

of worthy and respectable work experience(GAPPA, Austin,

2009) is rather dismal and fragmented.The current focus on

evolution of impact of organizational climate on the faculty's

internal capabilities has provided some meaningful insights

into the phenomenon in context of developing nations and

their educational institutions. The current research on the

dominant trifocal division of labor namely the teaching,

research and service as essential components; has not been

able to interpret the impact of climate on the respective

abilities of the faculty across these three areas of

expertise(GAPPA, Austin, 2009).

ORGANIZATIONAL CONTEXTS

In view of the academics as a social activity, such an action

can never ever escape the impact of the resultant and

surrounding sociological and organizational norms, policies,

institutional mechanisms and existing structures(SOKOL,

Gozdek,Figurska,Blaskova, 2015). As such teaching,

research and service across the faculty lives is not aloof from

the social and institutional influences and contexts.A study

underlined the prevalence of the lateral and direct impact of

the surrounding social structures on the faculty's abilities to

perform or under perform in the environments or the work

climates that are made available to them across their current

employment position. Indik's research framework further

validated the existence of the impact of the organizational

processes on the constituent employee's levels of

satisfaction, patterns of perceptions and individual's state of

psychology. A research across Asia on the exploration of

climate generated psychological safety as an outcome of

i m p a c t o f s u r r o u n d i n g s t r u c t u r e s ( S H E N ,

Yuzhong,Martin,Koh, 2015) further established the key role

of the external and surrounding structures on the residual

employee's ability to realize their own potential. As such it's

evident that the neighboring environment impacts the

individual's capacity to unleash his true potential and the role

of work climate and the faculty's perceptions regarding the

pattern of organizational climate would definitely exert a

lasting impact on the latter's performance (FINKELSTEIN,

Seal,Schuster, 1998). Yet the studies have been non

convergent with regard to the interpretation of the

organizational and structural characteristics that severely

impact the faculty “outcomes” and the “perceptions”

regarding wage levels in the longer run as well as the shorter

time frame (KLEIN, Fan,Preacher, 2006). The “campus

climate” is often interpreted as the those behaviors or the

learning environments that impact the individuals(faculty's)

sense of being safe, being respected and listened to and being

treated fairly and sense of belongingness. The American

“climate brochure” highlights the commonly observed

negative concerns (WISELI, 2015) of the faculty with regard

to department climate as:

Lack of consideration, politeness and respect

Lack of recognition, visibility and value

Insufficient sense of community or belongingness

Lack of support

Inequitable access to professional development

opportunities

Difficulties with regard to work life balance achievement

Illegal behaviors and gender based stereotyping

Tenure of women faculty

The earlier academic attempts at understanding the crucial

role of work climate and campus in faculty success have been

concentrated across select parameters yet no comprehensive

research has ever been conducted across publically and

privately funded educational institutions in perspective of

developing countries especially India. A study on the existing

“chilly climate” across American academia identified the

individual antecedents as percentage of women in

department, extent of fairness of procedures and extent of

gender based equity prevalent in the existing organizational

unit. These antecedents were interpreted as impacting the

content of women's exclusion from decision making

platforms across the organization. The organizational

support especially the organizational environment has been

observed as vital for career advancement in academia across

the recent studies on the topic (BALDWIN, Chang, 2006).


Cognitive contexts

The university faculty's “perceived self-efficacy beliefs"

have been observed as instrumental in perusal of career

sustenance. The organization has a direct and lateral role in

shaping the faculty's notions and practice of self-efficacy

based competences and experiences. In academic terms,

faculty self-efficacies are been interpreted as the driving the

self-based experiences and mastery of the aforesaid

disciplinary course or stream of learning. The experience

accumulation and self-assessed masteries of the subject are

essential for teaching and research based self-confidence and

capabilities. The contextual factors (especially the

employing organization) figures among the most proximate

source of teacher's efficacy based perceptions regarding the

own capabilities to teach, to instruct, to research and to

administer the higher education institutions (ADAMS,

Forsyth, 2006). It was observed that the contextual variables

impact the formation and application of teacher's self-

efficacy based beliefs.

The study further concluded that the “school structure” or the

organizational context accounted for maximum possible

variation in determining the proximate levels of the teacher's

e f f i c a c y p e r c e p t i o n s . A s t u d y a c r o s s t h e

lecturers(HEMMINGS, Kay, 2009) determined the

dimensions of self-efficacies in academic workforce and

observed the prevalence of the gender bias in findings.The

faculty's sense of self efficacy has also been interpreted in

terms of its relationship with overall academic job

satisfaction and other faculty related expectations in terms of

c a r e e r a d v a n c e m e n t a n d i n t e n t i o n s t o l e a v e

academia(GKOLIA, Belias,Koustelios, 2014). The study

acknowledged the blooming relationship between the self-

efficacy and the faculty's job satisfaction across the higher

educational institutions. The earlier attempts to develop and

validate a scale with regard to measurement of teacher's self-

efficacies across three domains of teaching, research and

management; were studied in detail across the Spanish

higher education institutions(VERA, Salanova,Rio, 2011).

A study across the 192 employees in Korean banks revealed

the existence of a relationship between the self-efficacy, pay

satisfaction and the benefits satisfaction. The study further

observed the prevalence of the centrifugal impact of self-

efficacies in shaping the individual's self confidence

levels(KIM, 2001) which were ultimately observed to reflect

across the native's aspirations ad performance across the pay

levels as well as benefits related satisfaction perceptions.

Another study supported the existence of relationship

between the faculty perceptions of self-efficacy and the

respective levels of job satisfaction(DIPASUPIL, Ham,Min,

2015). The faculty's self-efficacy has been observed as a

prime determinant of professional identity development in

academia(CANRINUS, Lorenz,Hofman, 2012). The study

opinioned that the faculty's classroom self-efficacy and

respective perceptions of job satisfaction; play a crucial role

in faculty's professional identity development. Faculty's self-

efficacy has also been interpreted in relation with the

possible outcomes and career goals across the career

conscious academia.

The faculty based self-efficacies (MORAN, Hoy, 2001) have

been observed to be positively related to their sense of

persistence across time, levels of enthusiasm, patterns of

commitment to profession, overall instructional behavior as

well as the relative student outcomes and student

achievement patterns. Another study highlighted the

existence of relative relationship between the teacher's self-

efficacy based perceptions and the levels of Job

satisfaction(KARABIYIK, Korumaz, 2013). Self-efficacy

levels across faculty in higher academia have been observed

to be related with the respective faculty's job related

performance outcomes(STAJKOVIC, Luthans, 1998).

Any change or transformation across the faculty's mastery

experience has been observed to substantially raise the levels

o f t h e i r e x p e r t i s e a n d e f f i c a c y b a s e d

expectations(LADNER, 2008). In fact the phenomenon of

faculty's academic self-efficacy has been defined across the

literature as involving the faculty's self-assessment regarding

the sense of confidence in one's ability to perform various

academic tasks l ike the teaching( instruct ional

delivery),research, management, and the service; in a

university work environment (LANDINO, Owen, 1988).

This attribute of self-efficacy has also been observed to

possess implications for faculty's organizational behavior

and perception formation with regard to organizational

supports(GIST, 1987).

RESEARCH HYPOTHESIS

H1 : There are significant differences with regard to age

across the work based experiences

H2 : There are significant differences with regard to age

across the faculty's sense of satisfaction

RESEARCH METHODOLOGY AND

FACTOR ANALYSIS

The current research operationalizes the core constructs of

“faculty work experience” and “salary satisfaction” on the

basis of Gappa, Austin, Trica (2007) conceptual model of

variables envisions the crucial role of three aspects of faculty

work experiences (academic freedom and autonomy,



professional growth, collegiality) and three characteristics of

academic organizations (resources, leadership, rewards).The

construct of “organizational context of work experience” has

been a widely researched aspect of impacts on faculty's

functioning and perception formation regarding the

academic work related satisfaction or non–satisfaction.

The review of literature on Indian educational institutions

suggest the non-existence of the suitable research framework

and the measures further complicate the problem evaluation

in Indian context. The current research is basically

quantitative in nature and its sole focus is on the

interpretation of the relations that exist across the faculty's

perceptions of work experience across Indian educational

institutions and salary expectations. The unit of analysis

comprises those tenured faculties across Indian universities

or the higher education institutions that have prior teaching

and research experience across their respective disciplines of

study across UGC recognized educational institutions with

effective student enrollment and optimum budgetary

allocation for the education. The choice of such a population

segment is consistent with earlier studies on the faculty's

perceptions. The “tenured and permanent faculty” members

across the various disciplinary schools of study would only

be considered for this research exercise. The rationale for

selection of tenured faculty stems from the need of separating

the worthwhile faculty from the non-serious faculty

members (DUBNER, 2013).The individual measurement

scales were analyzed collectively for extractive factor

analysis for further extraction of context specific significant

factors representing the phenomenon for research.

Pattern Matrixa

Component

1

C

CLI

W Valig

Vital

Ten

T

P

Sal

Cont

Climate_1

.950

Climate_2

.798

Climate_3

.867

Climate_4

.920

Climate_5

.881

Climate_6

.931

Climate_7

.944

Climate_8

.927

Climate_9

.934

Climate_10 .932

Valign_2

-.848

Valign_3

.921

Valign_4

.880

Valign_5

-.975

Valign_6

.945

Vital_1

.982

Vital_2

.978

Vital_3

.978

C1

.922

C2

.970

C3

.960

C4 .977

C5 .900

C6 .935

C7 .883

C8 .942

C9 .925

P1 .757

P2 .870

P3 .820

P4 .821

W1 .931

W2 .991

W3 .994

W4 .998

AccR1 .562

AccR2 .839

AccR3 .835

AccR4 .818

AccR5 .861

AccR6 .689

AccR7 .757

AccR8 .845

AccR9 .817

TenureExp_2 .866

TenureExp_3 .975

TenureExp_4 .857

TenureExp_5 .887

TenureExp_6 .811

TenureExp_7 .583

TenureExp_8 .675 Control_1

.818

Control_2 .929

Salary_2

.697 Salary_3

.725

Salary_4

.889 Salary_5

.869

Salary_6

.766

Salary_7

.803

T1

.979

T2 .982

Extraction Method: Principal Component Analysis.

a Rotation Method: Oblimin with Kaiser Normalization.

a. Rotation converged in 7 iterations.


FINDINGS

The work experience as earlier mentioned has been

measured with aid of faculty's perceived collegiality,

faculty's perceptions of access to academic and professional

resources and training opportunities, perceptions of work life

balance and person organization fit and the sense of

perceived tenure related equity. In terms of faculty's access to

resources and training opportunities across the various age

bands, the variations were observed with regard to the all the

constituent items. This essentially illustrates that the cross

age variations are not similar and nor are the variations

across factor based items equal in content and scope. For

instance, the first item “Accr_1” attracted maximum score of

6.73 across the age group 25-35 which subsides to 6.71 and

6.7 across the band two and three respectively. The sixth

item”AccR_6” however found a lesser favor across the

respondents whereas the items numbered “AccR_7” to

“AccR_9” attracted moderate response turnout.

In terms of the cross age variations with regard to the

faculty's tenure based expectations, the item numbered two

(My institution adheres to tenure criteria when making

decisions regarding tenure) attracted moderate weightage

and cross age variances. The highly favored item under the

“collegial relations” construct was the tenth item (Feel

reluctant to express opinion in wake of negative

consequences).

With regard to the collegiality, the responses varied in

declining order from the item number one to item numbered

five. The cross age variations in other words confirm the

global and existing research that inverted U-type

observations have been evident on account of age bands. In

terms of their aspirations with regard to collegial relations in

the organizational perspective, the respondents in age group

25-35 were observed as less favorable yet the respondents in

age band from 36-45 seemed to prefer the same as their age

rises and tenure expectations are also on the rising trend.

Age and academic freedom

In terms of faculty's perceptions of the existing academic

freedoms in the organizational climates, the maximum

inclination for the items was observed across the 36-45 age

groups. This signifies the prevalence of the mid career

concerns with regard to academic freedom and concerns with

regard to instructional and research facilitation environment

in the organizations (educational institutions in National

capital region).

Variations for Access to resources by age bands

Cross age variations for collegial perceptions

Inter age band variations for tenure based expectations

Differences with regard to work life balances


Cross age variations with regard to academic environments

Age and Satisfaction

The “u-turn” phenomenon (CLARK, Oswald, 1996) as

observed across the international research seems to be

prevalent across the tenured faculty in Indian scenario also.

In support of global research on the salary based expectations

and sense of satisfaction with rewards, the research upheld

the trends that salary based expectations initially decline and

then rise with maturity across the employing organization.

Hence the hypothesis stands vindicated that

There are significant differences with regard to age across

the work based experiences

There are significant differences with regard to age across

the faculty's sense of satisfaction

The academia's job based satisfaction across the diverse age

groups initially rises or sustains, then declines and again rises

across the career maturity (CLARK, Oswald, 1996).The t-

test based inter group variance analysis reveals the presence

of the cross age differences across multiple factors

considered for the current study.

Cross age differences with regard to salary satisfaction


GROUP STATISTICS

A2 N Mean Std. Deviation Std. Error Mean

FACTOR

: C

LIM

AT

E (

part

of

facu

lty’

s ac

adem

ic f

reed

om s

cale

)

Climate_1 25-35 183 6.7705 .54652 .04040

36-45 184 6.8315 .42962 .03167

Climate_2 25-35 183 6.7596 .49956 .03693

36-45 184 6.7880 .50535 .03725

Climate_3 25-35 183 6.7322 .56393 .04169

36-45 184 6.7554 .56295 .04150

Climate_4 25-35 183 6.6667 .72879 .05387

36-45 184 6.7826 .59737 .04404

Climate_5 25-35 183 6.6995 .64820 .04792

36-45 184 6.7554 .58204 .04291

Climate_6 25-35 183 6.7432 .57860 .04277

36-45 184 6.7826 .58815 .04336

Climate_7 25-35 183 6.7213 .67444 .04986

36-45 184 6.7826 .58815 .04336

Climate_8 25-35 183 6.6940 .62399 .04613

36-45 184 6.7609 .55060 .04059

Climate_9 25-35 183 6.6612 .71481 .05284

36-45 184 6.7446 .63157 .04656

Climate_10 25-35 183 6.6995 .62225 .04600

36-45 184 6.7717 .55522 .04093

FAC

TO

R :

PE

RC

IEV

ED

CO

LL

EG

IAL

ITY

RE

LA

TIO

NS

(par

t of

fac

ulty

wor

k ex

peri

ence

sca

le)

C1 25-35 183 5.6175 .99234 .07336

36-45 184 5.7446 .91435 .06741

C2 25-35 183 5.5519 1.00345 .07418

36-45 184 5.5815 .94891 .06995

C3 25-35 183 5.4973 .91912 .06794

36-45 184 5.5707 .82011 .06046

C4 25-35 183 5.4590 .95343 .07048

36-45 184 5.5163 .90521 .06673

C5 25-35 183 5.4208 .94521 .06987

36-45 184 5.5217 .85543 .06306

C6 25-35 183 5.4536 .92983 .06874

36-45 184 5.5380 .87383 .06442

C7 25-35 183 5.4262 .97989 .07244


FAC

TO

R;

VA

LU

E A

LIG

NM

EN

T (

par

t of

acad

emic

fre

edom

sca

le)

Valign_2 25-35 183 5.7377 .86256 .06376

36-45 184 5.8043 .80625 .05944

Valign_3 25-35 183 5.6667 .81425 .06019

36-45 184 5.7446 .75021 .05531

Valign_4 25-35 183 5.5410 .88157 .06517

36-45 184 5.6630 .73592 .05425

Valign_5 25-35 183 5.6393 .79212 .05856

36-45 184 5.6902 .74417 .05486

Valign_6 25-35 183 5.6393 .77812 .05752

36-45 184 5.6685 .72721 .05361

FAC

TO

R;

PE

RS

ON

-

OR

GA

NIZ

AT

ION

FIT

(pa

rt o

f

facu

lty

wor

k ex

peri

ence

sca

le)

P1 25-35 183 6.0383 .75131 .05554

36-45 184 6.0163 .83290 .06140

P2 25-35 183 5.9344 .78870 .05830

36-45 184 5.8696 .84566 .06234

P3 25-35 183 5.8743 .78485 .05802

36-45 184 5.8152 .82222 .06062

P4 25-35 183 5.9126 .70556 .05216

36-45 184 5.8696 .70467 .05195

FAC

TO

R:

WO

RK

LIF

E B

AL

AN

CE

PE

RC

EP

TIO

NS

(par

t of

fac

ulty

wor

k

expe

rien

ce s

cale

)

W1 25-35 183 4.2732 1.74208 .12878

36-45 184 4.5489 1.77345 .13074

W2 25-35 183 4.6776 1.94707 .14393

36-45 184 5.0054 1.93472 .14263

W3 25-35 183 4.5738 1.96502 .14526

36-45 184 4.8859 2.00355 .14770

W4 25-35 183 4.5355 1.98278 .14657

36-45 184 4.8641 2.01579 .14861

W5 25-35 183 4.7104 1.89222 .13988

36-45 184 5.0380 1.86825 .13773

FAC

TO

R:

PR

OF

ES

SIO

NA

L

VIT

AL

ITY

(par

t of

fa

cult

y sa

lary

out

com

es Vital_1 183 3.8525 1.31979 .09756

184 3.7554 1.30152 .09595

Vital_2 183 3.9180 1.25744 .09295

184 3.8913 1.31786 .09715

Vital_3 183 3.7596 1.22569 .09061

25-35

36-45

25-35

36-45

25-35

36-45 184 3.7500 1.27288 .09384


FAC

TO

R :

AC

CE

SS

TO

RE

SO

UR

CE

S A

ND

TR

AIN

ING

OP

PO

UR

TU

NIT

IES

(par

t of

fac

ulty

wor

k ex

peri

ence

sca

le)

AccR1 25-35 183 6.7322 .64569 .04773

36-45 184 6.7065 .73236 .05399

AccR2 25-35 183 6.7268 .61277 .04530

36-45 184 6.6902 .69086 .05093

AccR3 25-35 183 6.7049 .63793 .04716

36-45 184 6.6848 .67637 .04986

AccR4 25-35 183 6.7104 .65318 .04828

36-45 184 6.6685 .72721 .05361

AccR5 25-35 183 6.6940 .69085 .05107

36-45 184 6.6685 .74942 .05525

AccR6 25-35 183 6.6120 .85631 .06330

36-45 184 6.6141 .82847 .06108

AccR7 25-35 183 6.7049 .63793 .04716

36-45 184 6.6087 .81591 .06015

AccR8 25-35 183 6.6885 .67631 .04999

36-45 184 6.6522 .73826 .05442

AccR9 25-35 183 6.6667 .70581 .05218

36-45 184 6.6196 .80765 .05954

FAC

TO

R :

TE

NU

RE

EX

PE

CT

AT

ION

PE

RC

EP

TIO

NS

(par

t of

fac

ulty

wor

k

expe

rien

ce s

cale

)

TenureExp_1 25-35 183 6.6940 .64136 .04741

36-45 184 6.6630 .71330 .05258

TenureExp_2 25-35 183 6.9180 .36140 .02672

36-45 184 6.8152 .61723 .04550

TenureExp_3 25 35 183 6.8689 .47378 .03502

36-45 184 6.7826 .67470 .04974

TenureExp_4 25-35 182 6.8571 .47178 .03497

36 45 182 6.7967 .62842 .04658

TenureExp_5 25-35 183 6.8306 .55345 .04091

36-45 184 6.7500 .78406 .05780

TenureExp_6 25-35 183 6.8689 .42486 .03141

36-45 184 6.8315 .54209 .03996

TenureExp_7 25-35 183 6.8197 .55987 .04139

36-45 184 6.7283 .77676 .05726

TenureExp_8 25-35 183 6.8525 .46301 .03423

36-45 184 6.7989 .70734 .05215

TenureExcp_9 25-35 183 4.2787 .70628 .05221

36 -45 184 4.3315 .68063 .05018


Control_1 25-35 183 4.1803 .68360 .05053

36-45 184 4.2120 .72705 .05360

Control_2 25-35 183 4.2240 .73310 .05419

36-45 184 4.2446 .74656 .05504

FAC

TO

R:

SA

LA

RY

SA

TIS

FAC

TIO

N

Salary_1 25-35 183 6.7869 .61434 .04541

36 45 184 6.6739 .90062 .06639

Salary_2 25-35 183 6.7158 .60775 .04493

36-45 184 6.6793 .68585 .05056

Salary_3 25-35 183 6.7158 .58939 .04357

36-45 184 6.6739 .65468 .04826

Salary_4 25-35 183 6.6721 .85269 .06303

36-45 184 6.6685 .80564 .05939

Salary_5 25-35 183 6.7158 .62557 .04624

36-45 184 6.6957 .69721 .05140

Salary_6 25-35 183 6.7923 .54526 .04031

36-45 184 6.7228 .65647 .04840

Salary_7 25-35 183 6.7596 .60864 .04499

36-45 184 6.6576 .73711 .05434

FAC

TO

R:T

EN

UR

E C

AR

EE

R

LO

CU

S

T1 25-35 183 3.7322 1.40227 .10366

36-45 184 3.7500 1.34388 .09907

T2 25-35 183 3.6885 1.38922 .10269

36-45 184 3.7609 1.39765 .10304

FAC

TO

R:

FAC

UL

TY

CO

NT

RO

L

OV

ER

CA

RE

ER

The age based SEM plot depicts the differences across three

broader age groups across the respondents. The responses

vary across work experience (access to training opportunities

and resources) and salary related satisfaction. For the age

group (25-35) , the access to opportunities and resources

leads to a 0.249 times increase in control over career and the

faculty's control over career leads to a 0.411 times positive

increase in sense of satisfaction. Whereas for the age group

(36-45), the faculty's respective access to opportunities and

resources leads to a 0.109 times increase in control over

career and the faculty's control over career leads to a 0.420

times positive increase in sense of satisfaction. In the most

senior age ranking of 46-55 years, the senior faculty's

respective access to opportunities and resources leads to a

0.158 times increase in control over career and the faculty's

control over career leads to a 0.153 times positive increase in

sense of satisfaction.


Regression weights with grouping variables for age

Group value=1

Estimate S.E. C.R. P Label

CONTROL <--- Accr .249 .076 3.264 .001 par_49

CONTROL <--- P .163 .068 2.391 .017 par_50

CONTROL <--- C .615 par_51

CONTROL <--- TENUREEXP .004 par_52

CONTROL <--- W .006 .025 .246 .805 par_53

VALIG <--- CLIMATE .630 .099 6.356 *** par_58

T <--- CLIMATE -.384 .175 -2.199 .028 par_59

VITAL <--- VALIG -.209 par_60

VITAL <--- T .191 par_61

VITAL <--- CONTROL .016 .220 .072 .942 par_63

SALARY <--- CONTROL .411 .102 4.019 *** par_54

SALARY <--- VITAL -.019 .031 -.611 .541 par_62

Group value=2

Estimate

S.E. C.R.

P

Label

CONTROL

<---

Accr

.109

.074 1.480

.139

par_49

CONTROL

<---

P

.407

.078 5.202

***

par_50



CONTROL <--- W .031 .028 1.106 .269 par_53


T <--- CLIMATE .031 .186 .167 .868 par_59

VITAL <--- VALIG .260 par_60 VITAL <--- T .125 par_61 VITAL

<---

CONTROL

.199

.156 1.275

.202

par_63

SALARY

<---

CONTROL

.420

.078 5.365

***

par_54

SALARY

<---

VITAL

-.029

.034 -.868

.385

par_62

Group=3

Estimate S.E. C.R. P Label

CONTROL <--- Accr .153 .060 2.533 .011 par_49

CONTROL <--- P .326 .075 4.320 *** par_50



CONTROL <--- W -.008 .021 -.389 .697 par_53


T <--- CLIMATE -.017 .144 -.122 .903 par_59

VITAL <--- VALIG -.145 par_60

VITAL <--- T .090 par_61

VITAL <--- CONTROL .158 .139 1.131 .258 par_63

SALARY <--- CONTROL .372 .061 6.096 *** par_54

SALARY <--- VITAL -.020 .024 -.833 .405 par_62


The cross means comparison on the other side reveals these

differences across the diverse constituent factors undertaken

for research and analysis in this academic study across the

educational institutions in National Capital Region.

A2

25-35 36-45 46-55 Total

Mean N

Std.

Deviation

Mean N

Std.

Deviation

Mean N

Std.

Deviatio

n Mean N

Std.

Deviation

AccR1 6.7322 183 .64569 6.7065 184 .73236 6.7117 281 .71126 6.7160 648 .69859

AccR2 6.7268 183 .61277 6.6902 184 .69086 6.7117 281 .65914 6.7099 648 .65486

AccR3 6.7049 183 .63793 6.6848 184 .67637 6.6584 281 .75404 6.6790 648 .70023

AccR4 6.7104 183 .65318 6.6685 184 .72721 6.6940 281 .70630 6.6914 648 .69695

AccR5 6.6940 183 .69085 6.6685 184 .74942 6.6904 281 .73208 6.6852 648 .72468

AccR6 6.6120 183 .85631 6.6141 184 .82847 6.6085 281 .82579 6.6111 648 .83398

AccR7 6.7049 183 .63793 6.6087 184 .81591 6.6655 281 .74775 6.6605 648 .73897

AccR8 6.6885 183 .67631 6.6522 184 .73826 6.6335 281 .78204 6.6543 648 .74028

AccR9 6.6667 183 .70581 6.6196 184 .80765 6.6406 281 .78079 6.6420 648 .76732

Climate_1 6.7705 183 .54652 6.8315 184 .42962 6.7402 281 .56073 6.7747 648 .52319

Climate_2 6.7596 183 .49956 6.7880 184 .50535 6.7082 281 .54140 6.7454 648 .52006

Climate_3 6.7322 183 .56393 6.7554 184 .56295 6.6584 281 .62451 6.7068 648 .59140

Climate_4 6.6667 183 .72879 6.7826 184 .59737 6.6299 281 .70587 6.6836 648 .68563

Climate_5 6.6995 183 .64820 6.7554 184 .58204 6.6335 281 .68464 6.6867 648 .64768

Climate_6 6.7432 183 .57860 6.7826 184 .58815 6.6940 281 .59064 6.7330 648 .58684

Climate_7 6.7213 183 .67444 6.7826 184 .58815 6.6690 281 .67141 6.7160 648 .65047

Climate_8 6.6940 183 .62399 6.7609 184 .55060 6.6868 281 .59893 6.7099 648 .59292

Climate_9 6.6612 183 .71481 6.7446 184 .63157 6.6548 281 .67484 6.6821 648 .67468

Climate_10 6.6995 183 .62225 6.7717 184 .55522 6.6655 281 .63402 6.7052 648 .60994

C1 5.6175 183 .99234 5.7446 184 .91435 5.5907 281 .92183 5.6420 648 .94103

C2 5.5519 183 1.00345 5.5815 184 .94891 5.5409 281 .94827 5.5556 648 .96299

C3 5.4973 183 .91912 5.5707 184 .82011 5.5694 281 .90019 5.5494 648 .88297

C4 5.4590 183 .95343 5.5163 184 .90521 5.4875 281 .93771 5.4877 648 .93192

C5 5.4208 183 .94521 5.5217 184 .85543 5.5231 281 .87851 5.4938 648 .89129

C6 5.4536 183 .92983 5.5380 184 .87383 5.4626 281 .89414 5.4815 648 .89803

C7 5.4262 183 .97989 5.4565 184 .95715 5.4769 281 .97486 5.4568 648 .97002

C8 5.4536 183 .99823 5.5272 184 .90495 5.4698 281 .93731 5.4815 648 .94499

C9 5.4098 183 .98968 5.4946 184 .95812 5.4911 281 .95287 5.4691 648 .96410

C10 5.7814 183 .83619 5.8804 184 .74427 5.7544 281 .84527 5.7978 648 .81572

Valign_2 5.7377 183 .86256 5.8043 184 .80625 5.6512 281 .94457 5.7191 648 .88512

Valign_3 5.6667 183 .81425 5.7446 184 .75021 5.6477 281 .85799 5.6806 648 .81606

Valign_4 5.5410 183 .88157 5.6630 184 .73592 5.5160 281 .90668 5.5648 648 .85528

Valign_5 5.6393 183 .79212 5.6902 184 .74417 5.6299 281 .87323 5.6497 648 .81474


W2 4.6776 183 1.94707 5.0054 184 1.93472 4.1851 281 1.87310 4.5571 648 1.94033

W3 4.5738 183 1.96502 4.8859 184 2.00355 4.1317 281 1.84403 4.4707 648 1.94811

W4 4.5355 183 1.98278 4.8641 184 2.01579 4.0747 281 1.85302 4.4290 648 1.96284

Vital_1 3.8525 183 1.31979 3.7554 184 1.30152 3.8541 281 1.29700 3.8256 648 1.30348

Vital_2 3.9180 183 1.25744 3.8913 184 1.31786 3.9288 281 1.33172 3.9151 648 1.30528

Vital_3 3.7596 183 1.22569 3.7500 184 1.27288 3.8434 281 1.26365 3.7932 648 1.25454

TenureExp_1 6.6940 183 .64136 6.6630 184 .71330 6.6512 281 .73636 6.6667 648 .70327

TenureExp_2

6.9180

183

.36140

6.8152

184 .61723 6.8470 281 .56195 6.8580 648 .53174

TenureExp_3

6.8689

183

.47378

6.7826

184 .67470 6.8292 281 .63189 6.8272 648 .60477

TenureExp_4

6.8571

182

.47178

6.7967

182 .62842 6.7972 281 .63650 6.8140 645 .59197

TenureExp_5

6.8306

183

.55345

6.7500

184 .78406 6.7900 281 .72361 6.7901 648 .69826

TenureExp_6

6.8689

183

.42486

6.8315

184 .54209 6.8114 281 .64088 6.8333 648 .55876

TenureExp_7

6.8197

183

.55987

6.7283

184 .77676 6.7972 281 .64763 6.7840 648 .66457

TenureExp_8

6.8525

183

.46301

6.7989

184 .70734 6.8149 281 .62214 6.8210 648 .60808

Control_1 4.1803

183

.68360

4.2120

184 .72705 4.1708 281 .72654 4.1852 648 .71393

Control_2 4.2240

183

.73310

4.2446

184 .74656 4.2206 281 .70285 4.2284 648 .72299

Control_3 6.7923

183

.62066

6.7228

184 .76417 6.8327 281 .51109 6.7901 648 .62342

Control_4 6.7650

183

.59714

6.7554

184 .66937 6.7295 281 .69551 6.7469 648 .66077

Control_5 6.7760

183

.56361

6.7500

184 .64655 6.7972 281 .56517 6.7778 648 .58840

Control_6 6.7814

183

.58015

6.7554

184 .66937 6.8043 281 .58013 6.7840 648 .60619

Control_7 6.8251

183

.54674

6.7826

184 .64148 6.8292 281 .58493 6.8148 648 .59073

Control_8 6.8470

183

.45523

6.7989

184 .59854 6.8470 281 .54255 6.8333 648 .53617

Control_9 6.7869

183

.52774

6.8152

184 .51064 6.8470 281 .46453 6.8210 648 .49610

Salary_1 6.7869

183

.61434

6.6739

184 .90062 6.7117 281 .75510 6.7222 648 .76435

Salary_2 6.7158

183

.60775

6.6793

184 .68585 6.6833 281 .65686 6.6914 648 .65109

Salary_3 6.7158

183

.58939

6.6739

184 .65468 6.7438 281 .55276 6.7160 648 .59331

Salary_4 6.6721

183

.85269

6.6685

184 .80564 6.6904 281 .72226 6.6790 648 .78356

Salary_5 6.7158

183

.62557

6.6957

184 .69721 6.7011 281 .65162 6.7037 648 .65680

Salary_6 6.7923

183

.54526

6.7228

184 .65647 6.7331 281 .60054 6.7469 648 .60202

Salary_7 6.7596

183

.60864

6.6576

184 .73711 6.7651 281 .55581 6.7330 648 .62757

T1 3.7322

183

1.40227

3.7500

184 1.34388 3.5836 281 1.40189 3.6728 648 1.38586

T2 3.6885

183

1.38922

3.7609

184 1.39765 3.5694 281 1.38473 3.6574 648 1.38993

T3 4.2568

183

1.03491

4.2283

184 1.02005 4.3096 281 1.05571 4.2716 648 1.03881

T4 4.3169 183 1.04728 4.3207 184 1.04039 4.3950 281 1.06763 4.3519 648 1.05328

Discussions for policy making and conclusions

Anyhow the developing economies like India need to focus

on the identification and redressal of the contextual

influences that impact the academia's individual capabilities

and capacities to perform across the Indian higher education

institutions. Despite the existence of the national education

framework, tangible outcomes with regard to faculty

satisfaction and well-being are missing in Indian perspective.

The policy actions in terms of course correction and policy

reconstruction are needed for fueling and sustaining current

economic growth in the nation with effective role of the

knowledge and higher education in shaping the national

talent base.



AGE BANDS Variances

Factor paths 25-35 36-45 46-55 CONTROL <--- Accr .249 .109 .153 CONTROL <--- P .163 .407 .326 CONTROL <--- C .615 .319 .657 CONTROL <--- TENUREEXP .004 .019 .043 CONTROL <--- W .006 .031 -.008 VALIG <--- CLIMATE .630 .661 .835 T <--- CLIMATE -.384 .031 -.017 VITAL <--- VALIG -.209 .260 -.145 VITAL <--- T .191 .125 .090 VITAL <--- CONTROL .016 .199 .158 SALARY <--- CONTROL .411 .420 .372 SALARY <--- VITAL -.019 -.029 -.020

The rampant prevalence of age based variances across the

respondent sample population with regard to incumbent's

access to training opportunities confirms the existence of the

bias and differences in perceptions with regard to the

equitable allocation of organizational career development

resources and perceptions of organizational support for

career enhancement and professional development. The

faculties across the various “age based bands” are not alike in

their perception formation, with regard to Gappa's six

dimensional framework of work experience accumulation.

The review of the existing literature on the concerned problem

across Indian educational institutions revealed the prevalence

of massive cross age based differences are more prevalent with

regard to faculty's “perceived access to organizational

resources for professional growth and training opportunities”.

The current as well as earlier research findings vindicate the

findings of the underlying research on “access to professional

resources and opportunities”. The related “cross age concern”

was with regard to “perception of academic freedom” for

instructional and research based engagement in the prevailing

academic climates with in the current organization. The

participating faculty across all the three prominent age bands

(25-35 years, 36-45years, 46-55 years) was equivocal of the

concern for the essential academic freedom impartment with

regard to instructional improvement and the research based

contribution enhancement. The associated “cross age concern”

was also witnessed across the “perceptions of equity and

transparency” with regard to tenure based expectations as part

of work experience, being acquired across the current

organization (employing educational institution). The

participating faculty across the sample respondents voiced

their maximum possible concerns with regard to the tenure

based aspirations and equity of the process.

AGE BASED DIFFERENCES

The cross age differences seem to exhibit U-impact as the

levels of variance first decrease across the age band of 36-45

and then experiences incline across the age band of 46-55.

Such a phenomenon is a global trend and the research

findings hence validate and uphold the global results and

findings. The rationale is that the newly recruited faculty

seems to be high in motivation levels with regard to the

profession, which seems to decline across the mid -term and

the last section of the tenure witnesses the rise in the

expectation, work related experiences and respective

inclination for a healthy increase in the salary based

expectations from across the current position in the

concerned employing organization (BALDWIN, 2005).

DECLARATION OF INTERESTS

The research is author's own initiative to address the

problem gripping the faculty and no part of research is

funded by any interest group, association or pressure group

related to academia or any industry.

REFERENCES

ADAMS, Forsyth. 2006. Proximate Sources of collective

teacher efficacy. Journal of Educational Administration.

44(6), pp.632-39.

BALDWIN. 2005. Making Mid-Career Meaningful. The

Department Chair.

BALDWIN, Chang. 2006. Reinforcing our keystone

faculties. Liberal Education.

CANRINUS, Lorenz,Hofman. 2012. Self-Efficacy,Job

satisfaction,motivation and commitment: Exploring the

relationships between indicators of teacher's professional

identity. European Journal of Psychology of Education.

27.

CLARK, Oswald. 1996. Is job satisfaction U-Shaped in

age? Journal of Occupational and Organizational

Psychology. 69.

Dipasupil, Ham,Min. 2015. Relationship between

teacher's level of job satisfaction and Self -Efcacy: A

comparative study between Korean and Non-Korean

Perspectives. Indian Journal of Science and Technology.

8(24).

Dubner. 2013. http://freakonomics.com/2013/09/10/are-

tenured-professors-better-classroom-teachers/. [online].

[Accessed 7 April 2017]. Available from World Wide

Web: <http://freakonomics.com/2013/09/10/are-

tenured-professors-better-classroom-teachers/>

Finkelstein, Seal,Schuster. 1998. The New Academic

Generation: A profession in Transition. JHU Press.

Gappa, Austin. 2009. Rethinking Academic transitions

for twenty rstcentury faculty. AAUP Journal of

Academic Freedom.

Gis t . 1987 . Se l f -Efcacy : Imp l i ca t ions fo r

Organizational Behavior and Human Resource

Management. Academy of Management Review. 12(3).

Gkolia, Belias,Koustelios. 2014. Teacher's Job

satisfaction and Self Efcacy: A review. European

Scientic Journal. 10(22).

Hemmings, Kay. 2009. Lecturer Self Efcacy: Its related

dimensions. Issues in Educational Research. 19(3),

pp.246-49.

Julius, Di Giovanni. 2016. What factors affect the time it

takes to negotiate faculty collective bargaining

aggrements? Journal of collective bargaining in the

academy. 8(6).

Karabiyik, Korumaz. 2013. Relationship between

teacher's self efcacy perceptions and job satisfaction

level. In: World Conference on Educational Sciences.

KIM. 2001. Self-Efcacy and its impact on Pay

satisfaction,Pay-level satisfaction and benets

satisfaction. Seoul Journal of Business. 7(1).

Klein, Fan,Preacher. 2006. The effects of early

socialisation experiences on content mastery and

outcomes. Journal of vocational behavior. 68.

Ladner. 2008. What is the sole relationahip between Self -

Efcacy of community college Mathematics faculty and

effective instructional practice.

Landino, Owen. 1988. Self -Efcacy in university

faculty. Journal of Vocational behavior. 33(1).

Mayrhofer. 2007. The contextual factors of career

determination. In: Handbook of Career.

Moran, Hoy. 2001. Teacher -Efcacy: Capturing an

ellusive construct. Teaching and Teacher Education. 17.

Shen, Yuzhong,Martin,Koh. 2015. Toward a model for

forming psychological safety climate in construction

project management. International Journal of Project

Management.

Smylie, Konkol. n.d. Rethinking teacher workforce

development: A strategic human resource management

perspective.

Sokol, Gozdek,Figurska,Blaskova. 2015. Organizational

climate of the higher education institutions and its

implications for development of creativity. Procedia. 182.

Stajkovic, Luthans. 1998. Self-Efcacy and Work related

performance: A meta Analysis. Psychological Bulletins.

124(2).

Vera, Salanova,Rio. 2011. Self -Efcacy among the

University faculty: How to develop an adjusted scale?

Anales de Psicologia. 27(3), pp.803-06.

Wiseli. 2015. The climate brochure.


ABSTRACT

This study is a sincere attempt to understand the reading preferences of the newspaper readers in terms of the content

published in the newspapers. Though many studies has been conducted with respect to the newspaper reading habits,

preference of newspaper readers and content in newspaper. These research studies have shown some limitations in the sense

that most of them looked into marketing and distribution aspects of newspapers and not really understanding the

expectation of the readers in terms of the content. Hence this particular area will help publishing houses in a great way and

will give them indications of the reader's preference towards the content published in the national English dailies in

Bangalore city. The study was exploratory in nature which was fact finding to know the reader's preferences towards the

content deliverable.

It was observed from the study that that sports and games was the content which scored highest in terms of the content

preferred by the readers across all the age group followed by politics & government, science and technology and so on. It

can be inferred that since majority of the respondents were the youth and youngsters falling under the age group of 20-30

years it is significant in the study that they are interested in the sports and games and it was also evident that they had shown

interest towards the political related affairs as well followed by science and technology and the gen Y is more interested in

technology and advancements.

Keywords: Newspaper, Reader's, Preferences, Youngsters.

INTRODUCTION

Today Newspapers are considered to be the best source of

news and information. In many respects it is also a medium of

communication among the peoples across the world. There

are more than thousands of newspapers that are published

around the world. Readers are keen and have got desire of

learning more and more about the affairs and news of the

world. This has made possible because of the spread of

education throughout the world which has improved the

curiosity of people to learn about new things in the society.

As a source of information, the newspaper is almost

indispensable to those who are eager to acquire knowledge

in-detail and in-depth. These newspapers cover various news

from the distant corners of the world. That Information which

is of high importance would arrive almost early as possible.

As a result of the technology and others related factors,

readers everywhere are getting information about the most

important happening event in the world very quickly and

within a short span of time.

It is also the accepted fact that not all the readers read that

comes in a newspaper, they do have the preferences and

likings among the content that they would like to read and all

the daily newspaper would carry lot of various contents in it

including politics, economic, social, sports, crime and many

others so this study helps in understanding the preference of

the readers towards the content in the national English dailies

in Bangalore city.

NEWSPAPER

A newspaper is a publication published with an objective to

reach a large number of audiences, these newspaper

publications are often published daily, weekly, monthly,

quarterly, half yearly or sometimes yearly where most of the

newspaper contain lot of factual affairs, events, and issues

news of recent events across the world. Usually newspapers

are published with the great motto of informing people about

the various states of affairs in the world and make them

knowledgeable and educate them to be the best citizen in the

society.

A newspaper is a periodical publication which contains

AN EMPIRICAL INVESTIGATION ON CONTENT PREFERENCEOF ENGLISH NEWSPAPER READER IN BANGALORE CITY

Dr. Kiran. GAssociate Professor

Welingkar Institute of Management and Development & Research


news, views, public opinions, other informative articles

including the advertisements. A newspaper mostly is printed

on mediocre quality paper and a reusable paper which is

called as newsprint. Most newspapers now publish the e-

Paper (electronic paper) and online as well. The online

versions are called online newspapers or news sites.


Mary Nesbitt & Steve Duke (2008) in this research it was

indicated that there is an urgent need for newspapers to

understand and measure how readers use the newspaper.

Using this approach, newspapers have come out with the

result that the opportunities can be improving on major parts

of the newspaper which includes the quality and content.

Todd McCauley (20004) conducted research on 'Key

Newspaper Experiences' quoted the findings, The New

Readers study reveals that various readers “experience” the

newspapers in many distinct and various measurable ways

that are closely linked with the attributes they receive

whether they read more, or whether they read less.

Limor Peer & Bob LeBailly (2010) in the research

'Newspapers inch forward on audience orientation'. They

describe reader Orientation as “the degree to which

Newspapers are focused on meeting the needs of their

reading customers.”

Vivian Vahlberg(2003) in his research paper titled

'Consumers have strengthened their readership'. Newspapers

put more emphasis on understanding and responding to

consumers have strengthened their readership over the last

2.5 years with the better quality of news and also the likeable

content.

Carl Session Step (2004) in the research 'Why Do People

Read Newspaper' The conclusion of the study was surprising

if not shocking. The most vital step of all the research says,

may be making the paper easier to use including

contemporary touches such as more attractive design,

extensive use of color and informational graphics matter less

than heavy promotion and easy-to-understand language and

also the interesting content.

Tak Wing Chan and John H. Goldthorpe (2007) in the

research they conducted on 'Social Status and Newspaper

readership'tries to explore the social bases of cultural

consumption by examining the association between

newspaper readership and social status.

RESEARCH GAP

Though many studies has been conducted with respect to the

newspaper reading habits, preference of newspaper readers

and content in newspaper. These research studies have shown

some limitations in the sense that most of them looked into

marketing and distribution aspects of newspapers and not

really understanding the expectation of the readers in terms

of the content. Hence this particular area will help publishing

houses in a great way and will give them indications of the

reader's preference towards the content published in the

national English dailies in Bangalore city.

Objectives of The Study

The Important objectives of the study are as follows:

i. To understand the profile and reading habits of English

newspaper readers in Bangalore city.

ii. To understand the reader's preference towards the

content of the English dailies in Bangalore city.

Hypothesis

There is no significant difference between the reader's

preference towards the content of the English dailies across

different age group.

There is a significant difference between the reader's

preference towards the content of the English dailies across


Research Design

The sampling procedure used for the Study will be purposive

sampling. The study was conducted with the help of using the

structured questionnaire which consisted of five point likert

scale questions. On the basis of total number of circulation of

English dailies in Bangalore city and also considering the

unsold copies, with the help of sample size calculator

formula through a website surveysystem.com a tool to

calculate the sample size it is been determined as 624 by

considering 95% confidence level and 5% of confidence

interval with the total population.

DATA PRESENTATION AND ANALYSIS

The collected data has been prepared primarily through

percentage for tabular and graphical presentation. Preparing

the data for computer application, they were coded as per

requirement.The data was analyzed statistically using

descriptive statistics which includes test like frequency

distribution, Cross tabulation, Chi- Square Test.


4.1 Demographic distribution of the Respondents

AGE

No. of Respondents

Percentage

20-30 years

187

30

30-40 years

133

21

40-50 years

139

22

50-60 years

117

19

60 years and above

48

8

TOTAL

624

100

GENDER

No. of Respondents

Percentage

Male

473

76

Female

151

24

TOTAL 624 100

QUALIFICATION No. of Respondents Percentage

SSLC 15 2

PUC 59 10

Under Graduation 217 35 Post-Graduation 296 47

PhD 29 5 Others

8

1

TOTAL

624

100

OCCUPATION

No. of Respondents

Percentage

Student

168

27

Professional

194

31 Business

133

21

House Wife

53

8

Retired

60

10

Others

16

3

TOTAL

624

100

The above table shows the majority of the respondents are

30% are falling under the age group of 20-30 years, majority

of the respondents who have responded for the study are male

constituting 76% followed by majority of the respondents

47% are having the post-graduation degree as their education

qualification and lastly large number of the respondents that

is 31% are professional working as employees in different

companies and organizations.

4.2 Shows the Descriptive statistics of the most liked content across all the age group

Descriptive Statistics

N Minimum Maximum Mean

Sports and games 624 1 5 3.81

Politics/government 624 1 5 3.75

Science and technology 624 1 5 3.73

Food and beverages 624 1 5 3.73

Business and economics 624 1 5 3.62

Education 624 1 5 3.6

Medical Health and Fitness 624 1 5 3.58

Advertisement and Promotions 624 2 5 3.56

Classieds and events 624 1 5 3.53

Art and culture 624 1 5 3.5

Climate and whether report 624 1 5 3.49

Real estate and infrastructure 624 1 5 3.43

Movies and entertainment review 624 1 5 3.41

Daily Horoscopes 624 1 5 3.36

Jobs and career 624 1 5 3.34

Fashion and life style 624 1 5 3.32

crime 624 1 5 3.32

Research and development 624 1 5 3.26

Religion and spirituality 624 1 5 3.25

Travel and geography 624 1 5 2.93

Parenting and relationship 624 1 5 2.88

Editorial stories and articles 624 1 5 2.85

Puzzles and crosswords 624 1 4 2.57

Valid N (listwise) 624

The above table shows that majority of the respondents with

the mean value of 3.81 prefer to read the sports and games

content across the different age group followed by politics

and government with the mean value of 3.75 and the third

content which people would like to read in the newspaper is

science and technology with the mean value of 3.73 and

content like partnering and relationships, editorial stories and

articles, puzzles and crosswords are being considered as the

least preferred contents in the national English dailies in

Bangalore.

Chi-square results of difference between age and content preferred to read politics

and government section in English dailies

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 109.927a 16 .000

Likelihood Ratio 141.456 16 0

Linear-by-Linear Association 0.435 1 0.51

N of Valid Cases 624

Volume : 6 | Issue : 1 | January to June 2018 | ISSN 2319‐1740108 Volume : 6 | Issue : 1 | January to June 2018 | ISSN 2319‐1740 109

Chi-square results of difference between age and content preferred to read business

and economics section in English dailies

Chi-Square Tests




Linear-by-Linear Association 0.449 1 0.503 N of Valid Cases 624

Chi-Square Tests




Linear-by-Linear Association 0.449 1 0.503 N of Valid Cases 624

Chi-square results of difference between age and content preferred to read science

and technology section in English dailies

Chi-square results of difference between age and content preferred to read medical and

fitness section in English dailies

Chi-Square Tests






The table shows the chi-square result shows that the P value

of .000 is less than the table value of .05 hence it can be

inferred that there is a significant difference between the age

and preference of reading politics and government section in

the English dailies.




and preference of reading business and economicssection in





and preference of reading business and economicssection in





and preference of reading science and technologysection in


Chi-Square Tests






Chi-square results of difference between age and content preferred

to read education section in English dailies

Chi-Square Tests






Chi-square results of difference between age and content preferred to

read food and beverages section in English dailies

Chi-Square Tests






The table shows the chi-square result shows that the P value of

.000 is less than the table value of .05 hence it can be inferred that

there is a significant difference between the age and preference of

reading medical and fitnesssection in the English dailies.


.000 is less than the table value of .05 hence it can be inferred

that there is a significant difference between the age and

preference of reading educationsection in the English dailies.




and preference of reading food and beverage section in the

English dailies.



read sports and games section in English dailies


read classified and events section in English dailies




Linear-by-Linear Association 21.851 1 0


Chi-Square Tests







read art and culture section in English dailies

Chi-Square Tests






140




and preference of reading sports and games section in the

English dailies.




and preference of reading classified and events section in the

English dailies.




and preference of reading art and culture section in the

English dailies.


read real estate section in English dailies


movies and entertainment section in English dailies

Chi-Square Tests






Chi-Square Tests





N of Valid C ases 624


fashion and lifestyle section in English dailies

Chi-Square Tests







crime section in English dailies


.000 is less than the table value of .05 hence it can be inferred

that there is a significant difference between the age and

preference of reading real estate section in the English dailies.




and preference of reading movies and entertainment section

in the English dailies.


.000 is less than the table value of .05 hence it can be inferred that

there is a significant difference between the age and preference of

reading fashion and lifestyle section in the English dailies.


Chi-Square Tests







religion and spiritual section in English dailies


Pearson Chi-Square 139.475a 16 0





travel and geography section in English dailies


research and development section in English dailies

Chi-Square Tests



Likelihood Ratio 131.435 16 0 Linear-by-Linear Association 5.873 1 0.015










and preference of reading crime and offence section in the

English dailies.




and preference of reading religion and spiritual section in the

English dailies.




and preference of reading travel and geography in the

English dailies.




and preference of reading travel and geography in the

English dailies.

Since all the results of the chi-square executed was lesser

than the table value of .05 the alternative hypothesis is being

accepted that is a significant difference between the reader's

preferences towards the content of the English dailies across


DISCUSSION OF FINDINGS

The purpose of this study was to examine the preferences of

the readers towards various content in the newspaper and to

see is there any significant difference in the preference of

readers on the content and the age they belong to and the

study included majority of the respondentswho are in the age

group of 20-30 year and large number of the respondents

were male and also most of the respondents were highly

qualified in terms of their education. It was observed from the

study that that sports and games was the content which

scored highest in terms of the content preferred by the readers

across all the age group followed by politics & government,

science and technology and so on. It can be inferred that since

majority of the respondents were the youth and youngsters

falling under the age group of 20-30 years it is significant in

the study that they are interested in the sports and games and

it was also evident that they had shown interest towards the

political related affairs as well followed by science and

technology and the gen Y is more interested in technology

and advancements. The preferences of different age group

people towards various content in the English newspaper was

clearly exhibited in the study and it can be inferred that

different age group people will have different interest of

reading in the newspaper.

CONCLUSION

Though the newspaper is a single product but it definitely

attempts to cater to the different age groups in terms of the

content delivered. In order to keep the readers of different age

group satisfied it is necessary for the newspaper to include all

the content which they like and prefer and there are contents

which are been least preferred by the readers which can be

eliminated and more importance can be given to the highly

preferred contents like science and technology, food and

beverages, health and lifestyle and so on.

REFERENCES

Mary Nesbitt & Steve Duke Article (2008) “The

Experience of Newspaper” Readership institute journal

Media Management center, North-western university PP.

163

Todd McCauley (2004) “Key Newspaper Experiences”

Readership institute journal Media Management center,

North-western University vol 5 pp 126-141.

Limor Peer & Bob LeBailly (2010) “Newspapers inch

forward on audience orientation” published Congessional

research journal vol. 4 issue 3 pp 126-132.

Vivian Vahlberg (2003) “Consumers have strengthened

their readership” Institute published in Readership

Institute research report vol. 3 issue 4 pp. 21-24.

Carl Session Step (2004) Article “Why Do People Read

Newspaper?” Published in American Journalism review

issue 2 vol. 3 pp 9-17.

Tak Wing Chan and John H. Goldthorpe (2007) Article

“Social Status and Newspaper readership” published in

University oxford press journal Volume 112 Issue 4 pp.

21-29.


ABSTRACT

Changing consumer behaviour, habit, preference and expectation make it essential for retailers to reach out consumer in

every possible way. Shopping in the physical stores is still liked by consumers, but the modern consumers have more

expectation for better shopping experience from both online and offline mode. In todays' scenario goods and services are

not enough for sale but a memorable experience is more important in order to enrich consumer's daily lives. This fact give

rise to new technology for retail market and omni-channel retailing is something emerges out of it. Omni-channel retailing

means using all channels to reach out customers. This study aims to find out the need of omni-channel retailing strategy for

physical retailers on the demand of consumers. How effectively contemporary retailers used omni-channel strategy for

their business as a new competitive strategy? The data are collected form 50 organized physical retailers those are using

omni-channel strategy for their business in the NCR (Delhi) region. A judgmental and convenience sampling has been used

to draw sample from the total population. Well-organized omni-channel strategies make it possible for retailers that they

can serve their consumer anytime and anywhere. Results reveal that in Indian retail market omni-channel strategy

positively influence the firm performance.

Key words: Omnichannel, Physical, Retailers, Competitive, Strategy.

INTRODUCTION

Consumer journey started from searching information,

screening, analyzing, comparing than create actual

purchasing and post purchasing evaluation about the

information transmission. Therefore, retail channels are

more close to information channels. Development of

information technology and usage of internet provide all

information about the products and retailer to the consumers

at their mobile apps, tablets and social media. The model of

retailing continue to change and nowadays it has entered in a

new era where retailers place there consumer in the center of

strategy, understood their need and requirement and

contribute to create seamless consumer experience available

at anytime and anywhere. This new model is calledomni-

channel retailing. According to a study conducted by MIT,

80% consumers use their mobile for checking price and

availability of product before actual purchasing. A retail

survey conducted by PWC reported that 59% consumers use

social networking for searching their favorite retailers and

brands, 58% search new brands through social media, 55%

consumers use internet to provide feedback, and 48% use

them to make it purchase. Consumers expect fast and

convenience buying experience. Omni-channel instead to

eliminate silos and ensure a seamless consumer experience

by all channels. A cross channel study in 2013 RIS/EKN

shows that Omni-channel shopper get better deal as compare

to single channel and serving such consumers can increase

profitability and brand loyalty.

Many well-known retail companies have develop successful

new approach of omni-channel to new way of shopping. Tata

Croma for example merged its online and offline division in

2012 so that the same team can make planning and marketing

for its physical stores and e-commerce, according to a report

presented by Business standard, 2015.Retailers are using

different channel to reach the omni-channel consumers.

Omni-channel shopper are tapping different channel for their

shopping journey so the retailers have to be present wherever

their shoppers are. According to a survey conducted by

Oracle retail 2014, 70% respondent used website for

searching and sharing the information about the products.

Omni-channel strategy delivers valuable results for retailers

and improves loyalty.

MEASURING EFFECTIVENESS OF OMNI-CHANNEL RETAILING IN INDIA: A COMPETITIVE STRATEGY FOR ORGANIZED PHYSICAL

RETAIL STORES

Dr. Krishan K. BooraAssistant Professor, Department of Management Studies, BPS Women University, Sonipat

KiranResearch Scholar, Department of Management Studies, BPS Women University, Sonipat

OMNI-CHANNEL EXPLOSION

&CONSUMER EXPECTATION

In recent year,due to increasedcustomers'expectations

throughout their purchasing process explosion of Omni-

channel took place.Use of internet in daily life, consumer

journey switch to many channels for shopping. This is a

fundamental change in the retail market and due to this

consumer interacts with brands through many channels.

They expect from retailers to provide their good and services

by multiple channels.

TIME FOR ADOPTING CHANGE

This is high time for change and adopting new technology in

daily life of consumers. Competition is constantly increase

and need to create seamless experience that consumer expect

throughout the whole purchasing process. Retailers need to

move towards single channel to omni-channel that fulfills

consumers expectation and current demand of competition.

Retailers should useomni-channel strategy to support the

consumer experience and allowing consumers to navigate

channel easily. If retailers successfully apply omni-channel

approach in their business, it will help in increasing their

sales volume. According to a survey conducted by the

Rockpool digital, 2016 found that companies with weak

Omni-channel strategy retain 33% consumer with very low

retention rate and companies with strong Omni-channel

strategy retain 89% consumer with high retention rate.

EFFECTIVENESS OF OMNI-CHANNEL

RETAILING

There are many benefit of effective omni-channel strategy

used by the retailers for retaining consumers. This is not

wrong if we call the omni-channel strategy a retention

strategy. Omni-channel strategy delivers following benefits:

It create more convenience in consumer's life and helpful

for consumer interaction with brand by many channel and

support for making purchase decision.

A retailer can manage competition by providing seamless

channels for shopping to consumers.

It helps in providing relevant information to consumers

and personalized moments that build engagement and

loyalty between a consumer and brand.

Consumer loyalty is a symbol of consumer retention and

it is possible by use of omni-channel strategy for business.


There is a long marketing tradition of studying that arises from

selling across many channel of retailing. Some studies focus on

multi-channel competition and distribution strategy, branding,

advertising and pricing strategies of retailing. Researchers

have examined a variety of issues for channel management and

some are the part of this study as a review of literature that

helpful to providing right direction to current study.

MULTI-CHANNEL RETAILING

Xubing, (2009) focused on the strategic effect of price

advertising and the impact of differences in advertising on the

adoption of multi-channel of retailing. The result of the

studies showed that multi-channel retailing and price advertising

create different effect, depending on competitive market

condition, nature of products, cost of retailers and competitor's

strategies. Multi-channel retailers advertise their products in

store price by online than the consumer back to physical store

purchasing when online sales are low. The finding of the study

suggests that local retailers need to use internet for adopting

multi-channel to connect with national level and to improve the

profitability of business. Yan R. (2010) studied the multiple

channel design problem to develop a theoretical game model to

determine the market structure and branding strategy. They

showed that branding strategy and market structure exists for the

dual channel stores of a multi-channel retailer. Multi-channel

strategy is more effective for brand positioning and

differentiation and the market structure is strong if the consumers

give more preference to brands. Muzellec et al. (2014) modeled

competition in a multi-channel environment from a strategic

perceptive and found that the channel integration and

configuration of retailers showed a diversity of approach leading

to e igh t d i ffe ren t re ta i l channel s t ra teg ies for

marketing.Eleonora& Milena, (2015) the studied focused on

integrated environmental factors and consumer behaviour

towards multi-channel of retailing by a behavioral model of S-O-

R. It showed that store atmosphere based on both technological

and traditional factors supporting shopping. The combinations of

these factors influence consumer behaviour for purchase

decision and measuring the consumer perception about the retail

environment and different channel for purchasing.

Fornari E. et al. (2016)studied the multi-channel retailing in

the context of measuring consumer behaviour when pure

online retailer also open physical store. They focused on pure

online model of retailing to multi-channel to open with a

physical store. It found that long term synergy between the

two channels depends on brands available in the stores rather

than the experience of shopping. Paul&Enrico, (2016)

studied on multi-channel of retailing and its impact on role of

sales forces. It shows that sales forces give less focus on sale

of product and more focus on order taking and giving

advising to their client in the context of B2B. The result of the

study indicated that multi-channel strategy helpful in


reformulation of distribution strategy and effective sales

forces management policies.

Table 1 : Review Summary

Ishfaq et.al. (2016) studied how the physical stores retailers

shift towards online retailing and shows that multi attributes of

physical retailers introducing online channel model in retailing

process through omnichannel method. This was a qualitative

study of 50 retails executive of large retailers. Tree analysis

method was used to found the relationship between stores

attributes, distribution channel and delivery option. The

finding of the study shows that retailers need to evaluate their

strategy and identify the need of change in distribution channel

and also give suggestion for better understanding on

omnichannel retailing. Alexander, Heinrich &wollenburg

(2016) studied the effect of online sales on traditional retailing

and opportunity to use of new distribution model for traditional

retailing. They found that grocery retailers give preference to

omni-channel logistic planning for back end fulfillment and

last mile distribution concept. This was a country specific and

retailers specific study for measuring consumer behaviour (e.g

possibility of attend and unattended home delivery).

Alexander, Johannes, &Holzapfel(2016) investigate the new

model of retailing (Omni-channel) is effective in place of

multi-channel model of retailing. Online retailing is a force to

think about the change in distribution channel of physical

retailers and omni-channel retailing is seamless interaction

between online and physical retailers.The finding of the study

is development of advance logistic option with omni-channel

distribution model. Peltier& Dixon (2016) this was a review

based study to find out the importance of omnichannel strategy

in the context on sale and sales management.Verhoef,

Khanna& Inman (2015)showed through a conceptual study

that the omni-channel retailing is broader approach on

channels and how consumers are influence and move towards

channels in their buying process.

Omni-channel Retailing

Some of the studies focused on Omni-channel of retailing.

Omni-channel marketing strategy is new for the retailers for

beating channel competition and retains their consumers.

(See table 2 for summary)

Verhoef, Khanna& Inman (2015) showed through a

conceptual study that the omni-channel retailing is broader

approach on channels and how consumers are influence and

move towards channels in their buying process.

Author

Xubing, (2009)

Yan R. (2010)

Muzellec et al. (2014)

Eleonora& Milena,

(2015)

Fornari E. et al.

(2016)

Paul&Enrico(2016)

Focus of Research

Studied the price advertising

strategies in the multi-channel

competition

Studied to design the multi-

channel model to determine

market structure and branding

strategy

Showed that channel integration

and configuration of retailers in

mul t i -channel compet i t ion

environment

Showed the relationship between

integrated environmental factors

and behavioural factors of

consumers for adopting multi-

channel shopping

Showed the best distribution

strategy for retail format

Multi-channel strategy also

effective for B2B for managing

sales forces

Table2: Review summary

Authors

Verhoef, Khanna& Inman (2015)

Ishfaq et.al. (2016)

Alexander, Heinrich &wollenburg (2016)

Peltier& Dixon (2016)

Focus of Research

Compared the multichannel distribution strategy with omni-channel strategy

Showed the channel competition between online retailing and physical stores retailing.

This is also one of the big reasons for developing new model of retailing (Omni-channel retailing)

Studied the Omni-channel retailing as new model of retailing Studied the effect of omni-channel retailing in the context of sales and sales management

OBJECTIVE OF THE STUDY

1. To examine the determents of omni-channel retailing

strategy for measuring their effectiveness in organized

retail sector.

2. To measure the impact of omni-channel retailing on

firms' performance.

HYPOTHESIS FORMULATION

H1 : There is significant relationship between promoting

factors and retailers' performance

H2 : There is significant relationship between valuable

factors and retailers performance

H3 : There is significant relationship between Inventory

fulfillment option and retailers performance

H4 : There is a positive relationship between combined

effect of omni-channel retailing and organized

physical retailers'


This study has measure the effectiveness of Omni-channel

retailing and strategic behavior of retailers about omni-

channel and response of consumers towards omni-channel

retailing method. The total numbers of respondents are 50

organized retailers form NCR, Delhi. Convenient and

judgmental sampling method is using for drawing the sample

from the total population. Data is collected through a

questionnaire with some additional factors. Reliability of

scale is measured by Cronbach's Alpha value that is more

than 0.07. Present questionnaire is based on five point Likert

scale where, 1=strongly disagree to 5 =strongly agree.

DATA INTERPRETATION

The result of data interpretation was accumulated by IBM

SPSS 21 package. In the first part of result we discussed the

reliability of scale by using Cronbach's Alpha coefficients.

The result of reliability is shown in table 3. As per the result

and findings of this study, the scales are reliable because the

Cronbach's Alpha values are .839, .775 and .815 which is

more than 0.07 indicates the high reliability of scale. This

result is indicates the high reliability of promoting factors,

valuable factors and inventory fulfillment option. These are

the independent variables of omni-channel retailing strategy.

CORRELATION ANALYSIS

Pearson product moment correlation coefficient has been

used to test the linear relationship between the variable. The

correlation coefficient (r) is calculated to measure the

quantify strength of the relationship. Its numerical value

ranges from +1.0 to -1.0. r> 0 indicates positive linear

relationship, r < 0 indicates negative linear relationship while

r = 0 indicates no linear relationship.

Variables Cronch's Mean S.D No Alpha value of Item value

Promoting factors .839 3.43 .711 10

Valuable factors .775 3.51 .718 10

Inventroy .815 3.19 .916 8fulfillment option

Promotingfactors

Valuablefactors

Inventoryfulllment

option

OmnichannelRetalingStrategy

H1

H2

H3

H4

Fig: Conceptual Research Model

Table 3: Reliability analysis

Source: Author survey (2017)

Table 4: Correlation analysis

Pearson product moment correlation coefficient has been

used to test the linear relationship between the variable.

The correlation coefficient (r) is calculated to measure the

quantify strength of the relationship. Its numerical value

ranges from +1.0 to -1.0. r> 0 indicates positive linear

relationship, r < 0 indicates negative linear relationship

while r = 0 indicates no linear relationship.

Valuable factors

Inventory fulllment

rms Perform

ance

Promotingfactors

Promoting 1.000 .294* .258 .990**factorsValuable .294 ** 1.000 .245 .258factorsinventory .487** .245 1.000 .499**fulllmentrms .990** .258 .499** 1.000performance

Source: By author 2017(** Correlation is signicant at the level 0.01 and * correlation is signicant at the level 0.05)


Correlation of firms performance with itself (r=1) and the

number of non-missing observation of firms performance is

50. Correlation of firms' performance and promotion factors

of omni-channel strategy (r=.990) shows significant

correlation at the level 0.01 because p< 0.05 with 50 non

missing respondent. Correlation of firms performance and

valuable factors of omni-channel retailing strategy (r=.258)

shows that p>0.05 and accept the null hypothesis, there may

be no significant relationship between firms performance

and valuable factors of omni-channel strategy. Correlation of

firms' performance and inventory fulfillment option (r=.499)

shows that a strong positive correlation because p<0.05 and

reject the null hypothesis. There is a strong positive

relationship between firms' performance and inventory

fulfillment option at the significant level 0.01.

REGRESSION ANALYSIS

Linear regression is a model with dependent and independent

variables. The variables their values is predicted known as

dependent variables and independents are the variables their

value is known value and use for the prediction. The two

regression line are Y on X and X on Y. the line of Y on X is Y=

a+ bX here, a and b are unknown constant known as intercept

and slop of equation. This is use when Y is unknown and X is

known. Second regression line is X=c+dY that is used to

predict unknown value of X variable using the known value

of variable. The coefficient of X line on Y on X is called

regression coefficient of Y on X. It show that change in the

value of Y (dependent variable) related to unit change in the

value of X (independent variable).

Table: 5 Model summary

Model R R square Adjusted R square SE

1 .991a* .982 .981 .099

a Dependent variable, firms performance

b Predictors (constant) Valuable factors, promoting

factors and inventory fulfillment option

*a Predictors: (constant), Valuable factors, promoting factors and

inventory fulfillment option

From the summary table of the model, coefficients of

determination R square is equal to .982 (98% dependent

variable in this model explained by independent variable-

omni-channel strategy). This is a satisfactory result and show

that a significant proportion of the variance of the dependent

variable selling performance of the organized physical

retailers is explained by the regression in the model namely

onmi-channel retailing strategy with the determinant of

valuable factors, inventory factors and promoting factors. R

square is a general indicator of goodness of fit with the

variable in the model.

Table 6: ANOVA

Model Sum ofsquare

df meansquare

F Sig

1

Regression

Residual

Total

25.313

.457

25.770

3

46

49

8.438

.01

849.369

.000b

The separate relation between the variable explained by the

ANOVA and coefficient (see table 5 and 6) to know about the

validity of regression model. The result of ANOVA analysis

show that the model is statistically significant because the F

value 849.369 is much greater than critical value 2.79 (F, 3,

49) and 0.05 significant level (p=.000<0.05). So, the

independent variables are able to explain the variation in the

dependent variable.

As seen the table 6, all the standardized coefficients are

different from zero. Only promoting factors have a

significant impact on firm performance in the context of

selling because the p value is lower than significant level (sig.

< 0.05). Which means hypothesis H1and H4 is accepted and

H2 and H3 are rejected.

CONCLUSION

Indian retail market is growing rapidly but also facing

competition from different type of retailers, now the online

retailers are big competitor for organizedphysical retail

sectors. Omni-channel retailing strategy is a seamless

technique to beat the online competition in the market place.

This is most popular in developed countries but new for the

Indian retail market. It is adopted by big retailers those are

more capable to sale their products through any mode of

shopping. After analysis it is observed that omni-channel

strategy positively influence the firms' performance in the

Model

Unstandardized

Coefcients

Standardized

Coefcients

t sig. Collinearity Statistics

B

SE

Beta

Tolerance

e>0.01

VIF<10

1 constant

Inventory

Promoting

Valuable

-.006

.022

1.008

-.039

.088

.018

.023

.021

.028

.988

-.039

-.73

1.229

43.023

-1.887

.942

.225

.000

.065

.752

.731

.900

1.330

1.368

1.111

a Dependent variable: rms performance

context of consumer behaviour and sales records.The current

competitive situation among the retailershas led to adopt new

ways to serve customers. Some questions are arising towards

competitiveness: How does retail business compete in the

market? How do they plan their strategies against

competition?This research focuses on studying effectiveness

o f o m n i - c h a n n e l s t r a t e g y a n d i t s i m p a c t o n

firms'performance.

Firstly, the result of the study shows that positive relationship

between omni-channel strategy and firms' performance.

Second, promoting factors are more effective to attract the

consumers. It is suggested through this research study that

organized retailers are successful when the priority is

towards promoting factors of omni-channel strategy.11.

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Challengesforretailers. Journal of Retailing and

Consumer Services , 106-114.

Erik Brynjolfsson, Y. J., & Rahman, M. (2013).

Competing in the Age of Omnichannel Retailing. Solan:

MIT .

(2014) . Exclus ive 2014 Survey Repor t : The

Omnichannel Challenge: Strategies That Work. U.S.A:

Oracle Retail.

Gerd Bovensiepen, S. B., & B, M. (2015). The 2015

Global Omnichannel Retail Index: The future of

shopping has arrived.

Kamath, R. (2015). The retail chain is focusing on

omnichannel services and opening new stores to fend off

rivals. Mumbai: Business Standard.

Paul, L., & Enrico, C. (2016). The multi-channel impact

on the sales forces management. International Journal of

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Peltier, S. C., & Dixon, A. (2016). Omni-channel research

framework in the context of personal selling and sales

management A review and research extensions. Journal

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Rafay Ishfaq, C. C., & Raja, U. (2016). Realignment of

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(2013). 2013 RIS / EKN Cross-Channel Trends Study.

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grocery retailing A strategic planning framework.

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ABSTRACT

Human resources is an inimitable resource for any organization. Right hiring, right motivation, right compensation and

right training are indeed vital functions of any human resource management system. Despite things going rock steady and

good, an employee is likely to face career and professional stagnation owing to varied factors like- poor workplace

engagement practices, poorly designed work environment, office politics, office bullying and restricted career growth. It's

detrimental to both the organization and the employee. The paper deals talent management practices at Airtel in its MP

circle. The study deals with the identification of stagnant employees-those who are in the same role and same network for

three years and more. 41 such employees (out of 645) were identified and suitable interventions were thus designed to

overcome the 'career stagnation' faced by them. The research employs a descriptive research design and highlights the

process of talent management for overcoming profession stagnation at Airtel.

Keywords: Talent Management, Employee Stagnation, Strategic HR, Telecom

INTRODUCTION

Talent management is the people dimension in management.

It is a set of integrated organizational human resource

processes designed to attract, develop, motivate, and retain

productive and engage employees. The idea is to create a

high performance, stable, and sustainable organization that

meets its strategic and operational objectives. It is strategic in

its intent as it aims at sourcing, attracting, selecting, training,

developing, retaining, promoting, and moving employees

through the organization. It's an HR activity that translates

into economic benefits like revenue, productivity, quality,

customer satisfaction, cost, cycle time and market

capitalization. Besides, being emphatic on employee

retention, it seeks to hire the most valuable and most

qualified employees from an organizational viewpoint.

BACKGROUND OF THE STUDY

Identification of stagnant employees is a talent management

initiative to effectively mobilize the employees resulting in

improved productivity and retention. This approach is not

specific to a particular organization or sector, but is

universally relevant to all companies considering employees

as their valuable assets. As we know that Telecom sector

continues to be at the epicenter for growth, innovation, and

disruption and virtually for any industry, it is considered as

the backbone of industrial and economic development. The

industry has been aiding delivery of voice and data services

at rapidly increasing speed, and thus, has been

revolutionizing human communication. Apart from telecom

being the fastest growing sector, it has also been the sector

involving frequent changes due to rapid changes in

technology and rising demands of customer expectations.

Telecom sector being the fastest growing and changing

sector has led to increasing competition by major players like

Airtel, Vodafone, Idea, Reliance, etc. The companies are

coming with most innovative products to attract more

subscriber base giving more employment opportunities and

OVERCOMING PROFESSIONAL STAGNATION: A STUDY OFTALENT MANAGEMENT PRACTICES AT AIRTEL

Dr. Sheenu Jain Assistant Professor, Jaipuria Institute of Management, Jaipur

Dr. Swati Soni Associate Professor, Jaipuria Institute of Management, Jaipur

Ms Tejveer KaurHR Freelancer & Consultant

hence talent management practices came into picture.

The attrition rate is increasing due to decreasing level of

satisfaction in employees and unsatisfactory work

environments. This is majorly in case of employees having

experience of 3 or more than 3 years. The causes of higher

attrition rates also include poor workplace engagement,

unsatisfactory work environment, office politics and restricted

career growth. So, to curb these issues, HR department comes

with talent management initiatives, in which identification of

the stagnant employees is one such initiative. The concept of

stagnation is not only related to a particular organization or

sector but is relevant to all companies. Employees become

stagnant due to personal or professional reasons and it is the

responsibility of HR department of every organization to

identify their stagnant pool.

Stagnation is defined as 'to become stale and stop growing or

developing' which is unhealthy both for the employee and the

employer. Employee stagnation can lead to complacency,

reduced productivity and profit, playing over the odds for

employee remuneration, detrimentally affecting the

organization's competitive advantage. It is a human nature

for employees to resist change and to stay in their jobs for

security out of fears for the future. Organizations can no

longer afford to carry underperformers or those who are

resistant to change. All talent needs to be liberated for the

benefit of the organization, staying in or exiting out.

A development roadmap is specific to each employee

including the analysis of its career journey, mobility,

achievements, future aspirations, learning needs, potential

and performance ratings, and expectations from the

company. It is a plan by HR team in calibration with their line

managers that matches their short-term and long-term goals

providing them insights to meet those goals. Development

roadmap has major uses and impacts like creation of IDPs,

launching of successful career stories, improving employee

satisfaction, increased retention rate, talent brokerage, and

effective utilization of talent beyond the KPI etc.

After identifying the stagnant pool, it is the responsibility of

HR department to find out the reasons of stagnation and

create Individual Development Plans for each identified

employee and motivate them to grow by providing better

opportunities through additional responsibilities, projects or

Internal Job Postings.

STAGNANCY REPORT CONSISTS OF

FOLLOWING THREE THINGS

Identification of the stagnant pool of employees;

Target employees database consisting of complete

information related to their career journey and future

prospects; and Analysis of the stagnant pool.

TELECOM INDUSTRY OVERVIEW

Telecom Industry was introduced in India in the year 1851, in

Calcutta, with the start of landline services. It deals with the

activities and services of electronic systems for transmitting

messages through cables, telephone, radio or televisions. It is

regulated by Telecom Regulatory Authority of India (TRAI),

1997 and is one of the fastest growing sectors having a major

role in Indian economy.

India is currently the 2nd largest telecommunication market

in the world with a subscriber base of 1.2 billion as n May

2017. It expects the revenue of US $37 billion in 2017, with a

CAGR of 5.2% 2017. As per the current market situation,

Airtel is the leader in the telecom sector with maximum

market share which stands 1st in the world's rank. The other

players along with the market share are given below

The Airtel people survey score for the FY 16-17 was very

low. So, to improve productivity and retention, it was

necessary for the company to carry out a research and find the

number of stagnant employees.

Research Objectives

To identify the stagnant employees of Airtel, Madhya

Pradesh and create their career/ development roadmap;

To plan the career of stagnant employees and work upon

talent brokerage;

To make required investments to help the target

employees grow and move;

To build a platform to effectively mobilize the stagnant

pool;

Figure 1. Indian mobile operators

market share as on May 2017


To improve productivity and retention; and

Mapping priority- E and X Raters, 5 years and above with

same role and different location, immediate roles

available vis a vis career aspirations.

SCOPE OF THE RESEARCH

This paper illustrates the process followed by a telecom

company, Airtel, to identify its stagnant pool of employees of

Madhya Pradesh and work upon their development roadmap.

The scope of the paper includes a talent management

initiative and understanding the business objectives of the

circle and the organization with respect to identifying the

stagnant employees, making development plans with respect

to mapping their career roadmap, achievements, mobility

and their aspirations. The paper intends to provide

development opportunities to stagnant employees for career

growth.

The target employees were those who have completed 3 or

more years in the organization with same roles and location at

work. Those employees are put in the upper TAT- who have

completed 5 or more years and have E and X ratings. It

comprises of a database consisting of target employees'

career journeys along with their future aspirations and the

detailed analysis based upon it.

RESEARCH DESIGN

The research employs a descriptive research design. Airtel in

MP circle has 645 employees. The sample drawn for the

study includes employees with 3 plus years of experience

with the network in the same role and the same location-41

respondents is the precise sample size. It is a purposive

sample drawn with the purpose of drawing a map for 41

employees who have completed 3 plus years with the

network at a given location and at a given role.

The study relies on Primary Data obtained directly from the

pre-identified employees with the intervention of the HR

department. Telephonic (structured calling process) as well

as personal interviews were conducted to obtain information

and identification of stagnant employees. Data was analyzed

using descriptive statistics.


Definition of Stagnant Employees

The respondents chosen for the study were employees spread

across seven zones of Madhya Pradesh i.e. – Indore,

Chambal, Gwalior, Jabalpur, Sagar, Rewa, and Ujjain who

have an experience of 3 or more than 3 years with Airtel.

Employees who have Age on network i.e. experience of 3 or

more than 3 years without any role and location changes and

also without any role enhancements are called stagnant.

These were the target group employees for the purpose of

study. Analysis of the stagnant employees is done on

different bases like- location, function, band, compensation

ratio, mobility, performance rating and potential rating.

RESEARCH PROCESS

Figure 2: Process to Identify Stagnant employees at Airtel

Madhya Pradesh

Data Analysis

Madhya Pradesh Employee Data at Airtel

Figure 3: MP employee spread- Age on Network (AON)

MP circle has an employee spread of total 645 people and the

above figure 3 shows the bifurcation of those 645 employees

according to age on network i.e. the time duration they have

completed in the company. As per the data collected from the

HR department, it is evident that the maximum employees

are those who have completed less than 2 years in the

company and that group constitute a number of 308

members. The target employees are considered excluding the

employees having less than 3 years of experience. So, the

target employees to be considered are those employees who

have completed 3 or more years and they are 274 in number

(645- 308employees with less than 2 years &-63employees

with more than 2 but less than 3 years of experience).

Handholding in the new roleManaging PD & RewordShare Toalent Success Story

IDP of stagnant employeesCarreer Mentor by CLTPsychometric &Competency AssessmentProject Allocation &Development OpportunityPush Internal Opportunity toemployeesTalent Scouting by LineManager & HR

Structured call to allemployees > 3 yearsMapping entical skills andexperienceCapture data of career

preferences & thedevelopment gaps

Segregate the talent

Calibration with linemanager FH

1. DIAGNOSIS 2. INTERVATION 3. TRANSMISSION

AON No. of Employees

Lessthan 2

2‐4 4‐6 6‐8 8‐10 10&above

Total

1000500

0

308 135 67 50 50 35645

Table 1: MPemployee spread: - AON-Function Wise

Function Wise AON

Functions Less than 2

Years 2-4 Years 4-6 Years 6-8 Years 8-10 Years

10 & above Years

HR & Admin 2 2 2 0 2 2

Sales & Marketing 168 67 33 26 26 8

Finance 14 5 8 6 14 10

VBS 26 8 5 4 3 1

CS 84 44 10 4 3 13

Technology 9 8 9 9 2 1

Others 5 1 0 1 0 0

Total 308 135 67 50 50 35

The above table shows the function wise bifurcation along with bifurcation done on the basis of age on network of employees.

The information gathered from the graph states that highest number of employees are working in the sales & marketing function

with majority of people who have tenure of less than 2 years. The least number of employees are employed in the HR & Admin

function with consistent average of two years in different tenures.

Table2: MP Employee Spread: - AON-Zone Wise

Zone Wise

AON Chambol Jabalpur Gwalior Indore Sagar Rewa Support Ofce Ujjain Total

Less than 2 Years 21 24 40 38 42 32 70 41 308

2-4 Years 9 11 8 36 14 19 23 15 135 4-6

Years 0 4 5 10 10 3 29 6 67 6-8

Years 5 1 1 8 3 2 26 4 50 8-10 Years 1 4 4 5 3 4 25 4 50 10 & above Years 2 0 0 2 3 2 24 2 35

Total 38 44 58 99 75 62 197 72 645

The above table show the zone wise bifurcation along with

bifurcation done on the basis of age on network of

employees. The zone wise information reveals that

maximum number of employees work in the Support office

with an experience of less than 2 years and there are 24

employees who have the highest age on network.

Chambol zone has least number of employees and most of

the employee base carries the maximum are those who have

less than 2 years of experience with the company. Jabalpur

and Gwalior zones have no employees with 10 & above years

of experience and only Support office zone has highest i.e. 24

employees with experience of 10 years & above.


Table 3: MP Employee Spread: - AON Gender Wise

Gender Wise AON

No. of Employees Male Female Total

Less than 2 Years 266 42 308

2-4 Years 111 24 135

4-6 Years 57 10 67

6-8 Years 45 5 50

8-10 Years 48 2 50

10 & above Years 30 5 35

Total 557 88 645

From the Table 3 it is evident that the company consists of

maximum i.e. 557 male employees in MP region and only 88

female employees in the MP region. There are 266 male

employees& 42 females with AON less than 2 years in MP

region.The ratio of males to females with AON of 10 & above

years is 6:1 employees in the region.

Identification of Stagnant Employees

The major thrust of the research was to identify the stagnant

employees in the MP region and it was decided that people

with 3 years and above age on network with same role and

same location will be targeted for the purpose of study. Upper

Limit-5 years and above with same role and different

location.

Once this set of 274 employees were identified we intended

to map priority- E & X Raters, 5 years and above with same

role and different location, immediate roles available vis a vis

career aspirations. Authors also suggested to HR department

for creating IDP's for probable/future aspirations. They have

been advised to create monthly governance/progress tracker

and flash successful career stories on role movements/lateral

growth and creation of a platform for talent brokerage for the

existing pool.

Figure 4: Sample of Structured Calling Questions

Name of Company

Role

Dura�on

Loca�on

Wxperience

Company

Role

Dura�on

Loca�on

Serial Number

Employee ID

Employee Name

Role change status

Remarks

Mobile Number

Designa�on

Func�on

Gender

Sub func�on

Current Loca�on

Line Manager

Band

Role

3 Non‐Telecom

Experience

Telecom

Experience21 Basic Informa�n

Identified Stagnant Pool

After completion of structured calling process and appropriate filtration with the help of HR department finally 41

employees were identified as stagnant pool which also includes Activation Officers.

Table5: Zone wise Stagnant Employees

Zone No. of Stagnant Employees

Chambol 1

Jabalpur 3

Gwalior 2

Indore 5

Sagar 6

Support Ofce 23

Ujjain 1

Total 41

Role

Dura�on

Zone

AON

Total Experience

Mobility

Role Enhancement

Achievements

Projects

Promo�on Date

Aspira�on

Development Gap

Time to achieve aspira�on

Remarks

4. Airtel Experience 5. Other Informa�on


The stagnant employees with same role & location greater

than 3 years are highest from Sales & Marketing & minimum

from Enterprise & HR & Admin.

Type2. Stagnant Employees with same Role & different

Location greater than 3 years Age on Network

Table 7: Zone wise Stagnant Employees with same Role &

different Location greater than 3 years AON

The above table5shows that 23 employees working at

support office are stagnant.Chambol and Ujjain zones each

have only one stagnant employee, while Gwalior, Jabalpur,

Indore, and Sagar have 2, 3, 5 & 6 employees and Rewa zone

do not have any stagnant employee.

The above figure 5shows that Band I & H have highest

number of stagnant employees & least are in Band F.

Employees having Band F are the ones who have more work

experience, with top designations and they are highly paid

by the company.

Finance, Sales & Marketing functions have highest number

of stagnant employees followed by Customer Service &

technology and least number of employees in Enterprise and

HR & Administration department.

Type 1: Stagnant Employees with same Role &Location

greater than 3 years AON

Table 6: Zone wise: Stagnant Employees with same Role

& Location greater than 3 years AON

Figure 5: Band wise Stagnant Employees

Figure 6: Function wise Stagnant Employees

Zone

Chambol Jabalpur

Gwalior

Indore

Sagar

Support Office

Ujjain

Total

No. of Stagnant Employees with Same Role & Location greater

than 3 Years AON

1

2

2

4

4

10

1

24

There are total 24 stagnant employees who are having the

same role & location greater than 3 years. From these 24

employees, maximum are from support office and only 1

employee each from Chambol and Ujjain zones.

Figure 7: Band wise: Stagnant Employees with same Role

& Location greater than 3 years AON

The above figure 7 show that the employees with same role &

location greater than 3 years are maximum from Band I and

minimum from Band F.

Figure 8 : Function Wise: Stagnant Employees with same

Role & Location greater than 3 years AON

Zone No. of Stagnant Employees with

Same Role & Different Location


Chambol

Jabalpur

Gwalior

Indore

Sagar

Support Office

Ujjain

Total

0

1

0

1

2

4

0

8

The stagnant employees having the same role for greater than

3 years but they changed their location are total 8 in numbers.

These type of employees are maximum in support office

followed by 2 in Sagar, 1 each in Chambol, & Indore. No

such employee is found in Ujjain, Jabalpur, and Gwalior

zones.

Figure 9: Band wise Stagnant Employees with same Role

& different Location greater than 3 years AON

Zone No. of Stagnant Employees with

Same role & different location


Chambol

Jabalpur

Gwalior

Indore

Sagar

Support Office

Ujjain

Total

0

1

0

1

2

4

0

8

The employees having the same role from 5 or more years but

have changed locations are total 8 in number with maximum

employees at Support office, 2 employees in Indore.

Figure 11: Band wise: Stagnant employees with same Role

& different Location greater than 5 years AON

The employees having the same role from 5 or more years but

have changed locations are 3 each of Band H & I, 2 in Band G

& no such employee of Band F & J.

Figure 12: Function wise: Stagnant employees with same

Role & different Location greater than 5 years AON

The employees having the same role from last 5 years or

more but have changed locations are 3 from sales &

marketing, 2 each from finance & technology, 1 from HR &

admin & no such employee from customer service &

enterprise.

Compensation Bracket & Stagnant Employees

Figure 13. Stagnant Employee Head Count in

Compensation Ratio Brackets

The above graph shows that maximum i.e. 17 employees are

in 80-90 bracket of compensation ratio, 6 employees are in

the bracket of less than 80, 6 in the bracket of 90-100, 3 in the

bracket of 100-110 & 7 in the bracket of 110-120 which is the

last bracket and these last bracket employee's compensation

The employees with same role but different location greater

than 3 years are 3 each from Band H & I, 2 from Band G & no

such employee from Band F & J.

Figure 10 : Function wise Stagnant Employees with same

Role & different Location greater than 3years AON

The employees with same role but different location greater

than 3 years are maximum from sales & marketing functional

area followed by 2 each in finance & technology, 1 in HR &

Admin & no such employee in Customer service & enterprise.

Type3: Stagnant employees with same Role & different

Location greater than 5 years AON

Table 8: Zone wise: Stagnant employees with same Role &

different Location greater than 5 years AON


cannot be increased further and the company either has to

change their role, department or ask them to leave the

company.

Performance Ratings of Selected Stagnant Employees

Figure14:Performance Ratings of Stagnant Employees

The above performance rating figure 14provides an

information that best raters i.e. E & X raters are 7 employees

with E rating & 3 employees with X rating. These 10

employees are on priority basis. The remaining 28 employees

have G rating & only one employee has I rating.

Mobility of Stagnant Employees at Airtel – MP Circle

Figure 15: Mobility Preferences of Stagnant Employees

The above figure 15shows that 31 employees have no

mobility issue, 8 employees are not ready to change their

locations and 2 employees have restriction to some places

and they prefer to put forward their conditions in case of any

mobility.

Employee Categorization based on Priority

Figure 16: Priority Categorization of Target Employees

The 41 target employees who were considered as stagnant

employees were categorized as high, medium & low on the

basis of priority. Priority categorization is mentioned below.

High- E & X raters, 5years & above with different

location

Medium- 3 years and above with same role & same

location

Low- 3 years and above with same role & same location

and Activation Officers

FINDINGS

Employees look forward to HR policies and set their

expectations and share them with HR team when given a

chance;

Employee engagement activities play a crucial role in

motivating the employees and keep them aligned with the

organization;

The target employees were maximum from support office;

Highest stagnant employees are from Band I;

Finance function has maximum number of employees

who are stagnant;

There are 17 employees who are in 80-90 bracket of

compensation ratio;

Maximum employees have G rating;

31 employees out of 41 have no mobility issues; and

16 out of 41 employees were considered on high priority

which we recommended to company to focus at the initial

stage.

SUGGESTIONS AND

RECOMMENDATIONS

Every work takes time so the work culture of the company

should be more structured. Learning and Development

department currently has just two people but as per the work,

the company must employ three more people.HR database

contains employee information for current and past year but

it should contain the employee information at least for the

past five years. There should be online feedback forums or

idea rooms. There should be peer rating procedure in the

company which will inculcate positive and friendly

environment in the organization.

LIMITATIONS OF THE STUDY

The research was conducted on limited number of employees

for practical reasons. The research had to be done on the

target employees only as per the project requirement and

permission granted by the Airtel MP circle.

CONCLUSION

In this era of modernization and competitiveness, employees

are resistant to change. Every employee wants to work in his/

her comfort zone. They are scared of taking additional

responsibilities or risks and don't want to prove themselves.

Companies provide opportunities at every level but the work

pressure and targets stop them for taking up new roles. It is a

human tendency to resist change and thus employees become

decayed.

But in today's competitive scenario, companies expect

employees to have multiple skills and want them to deliver

results with higher productivity. No organization want their

employees to become stagnant. It is essential, vital, and

desirable that stagnant employees are identified and were

given opportunity to change their department, role or

location and further develop themselves. They should be

asked about their career preferences so that when the

companies have place for the specified roles, the employee

has opportunity to move. Some employees will always be

resisting change and will hesitate in taking up new roles, in

that case company should try to convince them and try to

fulfill their career aspirations but if they don't want any

change in future, they can be asked to leave the organization

as change is a necessary step for every organization to grow.

REFERENCES

Bardwick, J. M. 1980. The seasons of a woman's life. In

D. McGuigan (Ed.), Women lives: New theory, research

and policy: 35–37. Ann Arbor: The University of

Michigan.

Becker, Lawrence C. 2001. Encylopedia of Ethics,

Routledge, New York and London, vol I.

Emel R. 2000. Job Burnout and stress. London: Oxford

Press. p. 18-9. Robbins,

Nadel, Simon. J. 2000. Pluteaude employees: Too halt

stagnation workers must be challenged, stimulated, from

http://. Do cpoteer. Com/art – plateaued html.p15,2.

Paf fen. P. and Timmermans. I. (2016).Organizational

Restructuring and Career Plateauing. A Case Study, from

http://www.cdcnederland.nl/static/files/HanBusinessPu

blications09.pdf

Stephen. (2004). Principles of Organizational Behavior,

Ghasem Kabiri, the center of Islamic Azad University

Press.

Stoner, J.A.T.P. Ferrence, K.E. Warren, & K.M.

Christensen, Feldman and Wietz, 1986. Managerial

career plateaus. New York: center for research on career

Development.

http://www.au.af.mil/au/awc/awcgate/army/erickson_st

ages.htm

www.airtel.in


ABSTRACT

The changing role in global scenario and additional responsibility increasing the pressure on public extension services,

which will further widen the ratio between workers, farmers, operators in developing Indian economy. The meagre

performances of the public agricultural extension services in Indian subcontinent engender interest in pluralistic concept of

extensions involving in variety of contents. The public extension services filled this void of inadequate infrastructure,

finance availability and inability to reach the grass root level of villages of public extension services.

The paper focus the conceptual underpinnings of these extension approaches, things to see the practical challenges inherent

in their design, and provides an assessment of several performance based studies described in the formal and informal

literature. The paper reviews the conceptual underpinnings of theses extension services in Kota district of Rajasthan (India)

region. The objective of this paper is the study the highlights the potential of the private extension agencies working in

fulfilling the needs of farmers in Kota region of southeast Rajasthan. The extension system need of different providers as per

clientele, with public providers and focusing the conceptual problems with focusing more on small scale and less

commercial farmers, same time public system act as regulatory and watch dog mechanism on private extension services for

accountability, quality and coverage of the wide range of the farmers need.

Keywords: Agriculture, Public Extension Services, Private Extension Services, Kota District

INTRODUCTION

India's half of the population is either wholly or significantly

depend for their livelihoods or some form of activity be it

crop, agriculture, horticulture, animal husbandry or fisheries

(Sulaiman V) Agricultural progress continue remain vital

for achieving faster, sustainable and more inclusive

economic growth in India. Expansion of farm incomes is still

most potent weapon for reducing poverty(planning

commission 2011). India's agricultural faces numerous

challenge and agricultural extension services can and should

contribute to address these challenges. At present farmers is

different from yesterday as they are not dependent on

agriculture for food alone, but to produce more marketable

surplus to make more profit. There diversified growing needs

born out of modernization, besides food. His expectations

depend on extension are changing.

The pressure of changing role and additional responsibility

on public extension will add more to existing problems like

wide ratio between worker and farmer, inadequate

infrastructure and finance. It is under pressure to reform its

purpose as well as the way it is managed and is also being

encouraged to work closely with extension providers from

the private and voluntary sector.( Sulaiman V Rashid 2012) .

Today Indian farmer shifting from subsistence farming to

commercial farming and agriculture need more investment,

high technology and various inputs like seeds, fertilisers etc.

The farmer dependent on his neighbour, progressive farmer,

farmer organisations, extension workers ,input agencies,

input dealers for seeds, fertilizers, pesticides, weedicides,

machinery and labourers for regular work, banks for credit,

government for supportive policy and nature for good

production. However, more private extension players are

THE STUDY OF PRIVATE SECTOR'S ROLE IN AGRICULTURAL

EXTENSION SERVICESAN EVALUATIVE STUDY OF KOTA DISTRICT OF RAJASTHAN (INDIA)

Varsha SinghManager, Rajasthan State Warehouse Corporation, Government of Rajasthan

Janmay Singh HadaAssistant Professor, National Institute of Fashion Technology, Ministry of Textiles, Government of India, Jodhpur

working in well-endowed regions and high value crops.

Remote areas and poor producers are less served by both

private and public extension services. Hence, the existing

gap is expected to enlarge between public extension services

and farmers. Private extension is not a substitute for public

extension and there is need for a significant public extension

yet reasonable good extension system takes time, learning

and experimentation.

The Farmers average land and water resource base has been

declining and the gap between yield potential and national

average are widening with low yields “The slow growth of

opportunities in the non-farm employment sector has led to

the proliferation of tiny and economically non-viable

holdings”(NCF, 2006).

The main extension roles are technology dissemination with

improved access to markets, credit, infrastructure, research,

advice, farmer organisation development and business

development services.

The last few years have also saw the agriculture

diversification headed for high value commodities such as

fruits, vegetables and livestock products. The large share of

high value commodities is total value of agricultural

production in a number of districts in India.

In agricultural R&D private sector, participation is

increasing as recent data show that the funding business own

by private is 11 percent of the total R&D funding (Pal and

Jha, 2007). The investment occurs in chemicals (fertilizers

and pesticides), food processing followed by seed and

machinery.

Today, considerable numbers of private extension service

providers are there in the field that can influence the ultimate

profit of the farmer. The genesis of private extension may be

because of two reasons.

1. Inability of public extension services to reach all the

famers at same time, the void filled by the private

extension services.

2. Those service, which are not covered by public

extension services like, supply chain management,

market support, processing etc.

EXTENSION SERVICES

All agencies working in the public, private, NGO and

community based initiatives that provide a range of

agricultural advisory services and facilitate technology

application, transfer and management consist of ''extension

services" in current Indian context. The Department of

agriculture continue to dominate the public sector extension

provision with other department's lines like, research centres

and agricultural universities, which sector play a very limited

role in extension.

The situation assessment survey of farmers conducted during

the 59th round of the National Sample Survey (NSSO, 2005)

provided valuable insights into reach of extension services

across India. The last three decades witnessed declining

support for public extension and emergence of a wide range

of extension service providers in the private sector all over

the world. Sulaiman V. (2012).

PRIVATE EXTENSION SERVICES

The definition of agricultural extension varies from simple

transfer of information to facilitating the total human

development. The services are mainly funded by

Government in Indian context. But there are private players

who also funded the extension services.

PLAYERS IN PRIVATE EXTENSION

Agricultural consultant, agricultural consultancy firms,

Progressive farmers, Farmer's organization/ cooperatives,

Non Governmental organizations(NGO), Krishi Vigyan

Kendra(KVK), Input dealers, Newspapers, Private

television channels, Internet, social media, Donor agencies.

There are many private extension services who are working

in this fields like as DSCL, MSSL, IFFCO, KRIBHCO,

CFCL etc. They provide timely and quality inputs for their

processing units, quality products for the export.

OBJECTIVE OF STUDY

To study the public extension services in Kota district of

Rajasthan (India) region.

To identify and study the different private extension agency

working in Kota district.

To assess the role of private extension services in fulfilling

the needs of farmers.


The approaches in agricultural extension to transfer the farm

technology, has undergone spectacular changes over the

years. These changes have taken place structurally and

functionally across the globe. Many countries are now in the

process of modifying the existing public extension system

for meeting the current challenges.

Bloome (1993) indicated that private extension involves

personnel in the private sector that delivers advisory services

in the area of agriculture and is seen as an alternative to the

public extension. whereas, Van den Ban and Hawkins (1996)


stated that, farmers are expected to share responsibility for

the service and pay all or part of the cost.

Saravanan and Shivalinge Gowda(2001), operationalized

privatization in the manner that "Privatization of agricultural

extension services" refers to the services rendered in the area of

agriculture extension services refers to services rendered to the

area of agriculture and allied experts by extension personnel

working in the private agencies or organization for which

farmers are expected to pay a fee or free and it can be viewed as

supplementary or alternative to public extension services".

Several workers indicated the need of privatization of

extension services Howell (1992), Antholt .

(1994), Sulaiman and Gadewar (1994), Dinar ( 1996) and

Van den Hawkins (1996) .They reported that first and

foremost reason behind privatization is deckling trend in

government expenditure for extension in several countries

over the last decades. Financial burden of government has

forced to make sharp reduction in budget of public extension

programmes.

Ameur(1994), Hansra and Adhiguru (1998), stated the

impact of public extension in agricultural development is

generally disappointing, ineffective work, transfer of

technologies are not economically viable, not matching with

farmers needs, little consideration for cost effectiveness, less

competent extension personnel with no accountability to

farmers, bureaucratic nature and target oriented programmes

mostly imposed on farmers.

Sulaiman and Gadewar (1994), in recent past most of the

developing countries including agriculture are shifting from

mere subsistence level to commercialized agribusiness.

Above all, challenges and opportunities, of globalization and

liberalization era demand effective alternative extension

approach.

Hassanullah (1999) stated that growing commercial and

specialized nature of agriculture would demand quick and

technically sound advice, based on scientific analysis with

appropriate marketing information. Existing public

extension is not capable of meeting these challenges.

Saravavnan ( 2002) concluded that financial constraint of

government , disappointing performance of public extension

system and commercialization of agriculture would make

privatization of agricultural extension service become

unavoidable. Weighing the assumptions of privatization can

make good decision.

PROJECT METHODOLOGY AND

APPROACH

The project undertaken in Kota district of Rajasthan. The

primary data was collected from farmers and company

officials through personal interview. The source of secondary

data was taken from government publications, newspapers,

internet and information collected from company officials.

The detail of technical program is given below:

STUDY APPROACH: It is based on an explorative study,

followed by descriptive study. The survey was conducted on

following guidelines.

a) Perception of structured schedules will be used as an

instrument for gathering information.

b) Conduction of surveys containing farmers and dealers

distributors.

c) asking the relevant question through schedule by

personal contact

d) After gathering information, and then a report was

prepared after analysis.

RESEARCH INSTRUMENTS

Research Instruments were schedule with open ended and

closed ended questions.

SAMPLING PLAN

Sampling unit: Sampling unit consisted of farmers and

different company officials working under extension service.

1. Farmers: 180 (30 farmers from each company)

2. Company officials: 23

SAMPLING PROCEDURE

To knowing, the perception of farmers regarding private

extension services provided by different companies in Kota

Region randomly sample was taken.

ANALYSIS OF DATA

Data obtained by the survey of the sample was pursued

through tabular analysis, including appropriate management

tools as and when necessary.

Objective 1: To study public extension service in Kota

Region.

Field visit, questionnaires

Farmers interviews

Literature survey Libraies

Research analysis of data availablewith Govt. & Internet

PrimaryResearch

SecondaryResearch

Primary data was collected from deputy director (agriculture

extension), Kota, Krishi Vigyan Kendra (KVK), and

agricultural research station in Kota region about the

establishment, labor engaged with the organization and

extension services to farmers.

Objective 2: To identify and study the different private

extension agencies working in Kota region.

Primary data were collected from company officials which

are working in Kota district like DSCL, MSSL, ITC, IFFCO

and KRIBHCO. Secondary data were collected from

government publications, newspapers and related websites.

Objective 3: To assess the role of private extension services

with aim to fulfil need of farmers.

List of farmers were collected from different corporate

officials of DSCL, MSSL,ITC,IFFCO and KRIBHCO. A

survey was conducted to farmers and fulfil the questionnaire

and the find the response of private extension by farmers.

Objective 4: To make suggestions for improvement of

UTTAM 30 milestone project of CFCL LTD.

The above objective was fulfilled by recommending critical

improvement area for private extension services after

analysis of sample data.

TO STUDY THE PUBLIC EXTENSION

SERVICES IN KOTA REGION

For the objective data collected by surveys of KVK's,

research station and deputy director extension in Kota region

about their establishment, work force engaged with the

organization and services provided to farmers.

Key Extension approach:

Conducting "on farm testing" for identifying

technologies in terms of location specific sustainable

land use systems.

Organise training to update the extension personnel with

emerging advances in agricultural research on regular

basis.

Organise short and long term vocational training courses

in agriculture and allied vocations for farmers.

Organise frontline demonstrations on various crops to

generate production data and feedback information.

AGRICULTURAL RESEARCH STATION

(ARS)

ARS was established in the year 1991 with an objective to

provide knowledge to farmers regarding the farm practices

under Rajasthan agricultural university Bikaner but in year

1999-2000 it works under Maharana Pratap agricultural

university of Agriculture and Technology, Udaipur.

Farmers meeting related to control measures

soil testing facilities

Demonstration of new varieties

Management of salt affected soil

Processing and preservation technology

DEPUTY DIRECTOR AGRICULTURE

(EXTENSION) KOTA

Deputy director agriculture extension Kota was establish in

the year 1957-58 under the department of agriculture

Rajasthan Government.

S.No Designation No. of Post

1. Deputy Director Agriculture (Extn.) 1

2. Agriculture Research Officer 1

3. Agriculture Officer 2

4. Assistant Agriculture Officer 1

5. Junior Accountant 1

6. U.D.C 2

7. L.D.C 2

8. Agricultural supervisor 1

9. Driver 2

10. Peon 4

S.No Designation No. of Post

1. Zonal Director 1

2. Professor 3

3. Associate Professor 16

4. Assistant Professor 39

5. Technical Assistant 46

6. Ministerial 17

7. MTS 22

Work force involved

Key Extension approach




Recently in Kota region three public sector agencies engaged

in providing extension services to farmers like organize short

term and long term vocational training course, soil testing

facilities, demonstration of new varieties, crop seminar etc.

Although these agencies are working for their welfare of

farmers but the area covered by them is limited in terms of

services given due to limited work force. Now -a-days

farmers need not only the above-mentioned services but also

the importance of timely information about weather,

marketing, new technological advances, after sale services,

additional income source generation etc are recognized.

Here, the need of private sector extension agencies is

realized. They fulfill the gap cab.

To study and identify the different private

extension agencies working in Kota region

A survey of the private was conducted in Kota region, which

are involved in providing private extension services in Kota

region like CFCL, DSCL, Mahindra Shubh services Ltd.,

IFFCO, KRIBHCO, ITC etc, to know about their

establishment, manpower involved, service provide to

farmers, functioning of the service centres and objective of

the services.

A. DCM Sriram Consolidated Services Ltd (Dscl): DSCL

launched the novel concept of chain of agri input retail stores

called "Hariyali Kisan Bazaar (HKB)". The idea is to build

the relationship with farmers and enhances their

productivity. Hariyali Kisan Bazaar aim to cater all

occupational needs of the farmers at one roof.

The four pillars of Hariyali's are offering to the farmers are

complete range of quality inputs, objective technical

guidance, easy crop finances, direct output linkage to farmer.

In Rajasthan, three (3) HKB centre are working currently at

Kota, Bundi and Alwar, whereas India 18 HKB are established

until date. In Kota region, it was started in July 2002.

The main objective of this centre is to fulfil the occupational

needs of the agriculture under one roof at fair price and

unbiased attitude.

EXTENSION SERVICES

Field demonstration, field visit, farmers meeting, crop

seminars, participation in Kisan mela, soil testing facilities,

advice of agronomist, output related business ( contract

farming)- In Kota region contract farming as undertaken by

HKB and Fro Lays ltd for growing chips processing varieties

of potatoes. According to farmer, this output related business

provides opportunities to them for growing new crops

directly to the processor at better price.

Work force involved Agronomist, 1 commercial

executives, sales person

Function of services centres: catchment area of the centre

consist of 15 to 20 village in the radius of the 15-20

kilometre.

(B) Mahindra Shubh Labh Services (MSSL): The

company retails agri inputs including M&M brand

(Mahindra and Mahindra) through shubh labh. It offers the

borrowing support to farmers, through krishi vihar, a

platform for banks to provide loan to farmers.

M&M tractors giant has started a concept of the farmers in

2000 for "one stop shop" where farmer can purchase all type

of the inputs including information, machineries at one place.

Extension services: Farmers contact program,

communication through leaflets, letters, advertisement in

news papers popularly read by the farmers, farmer's group

formation, farm solution services.

Work force required Territory Manager, executive,

agricultural officer, Team leader, Field supervisor.

FUNCTIONING OF SERVICE CENTER

Spokes may be field supervisor, spoke operators franchise,

registration of the farmers in the centre when he used to come

for purchasing the inputs. If any person wants agri finance

they provide loan. Field supervisor visit to the field of the

farmer as per plan. Crop experts also visit two and three

fields. Farmers collected it to the centre. Field supervisor

provides guide to the farmer regarding output sale. After

output sale deduct finance amount if the farmer taken finance

and rest amount given to farmers.

Objective: To provide technical guidance to the farmers so

that they must increase the productivity.

Indian tobacco company (ITC) : ITC is one of the India's

foremost private sector companies with market

capitalization of around US $ 6 Billion. It have diversified

business present in cigarettes, hotels, papers packaged foods,

confectionary, agribusiness, greeting cards & other FMCG

product.

ITC E-CHOUPAL

ITC christened e - choupal farmers use this technology

infrastructure to access on line information from ITC'S

Soil Testing Facilities

Demonstration of new varieties and farmers meeting

Crop Seminar

implemented soya choupal, aqua choupal on ITC'S farmer

friendly websites etc. Indian farmers typically but at retail

prices, losing outs on both ends of the deal. ITC has

convinced e-choupal bring the power of the scale to the

smallest farmers e-choupal attempts to deliver to the farmer

the best quantity information and inputs they require to raise

the crop output. Companies provide an efficient and

inexpensive infrastructure to reach the farmers.

In Rajasthan 700 e-choupal, where as in Kota it is in 54

locations. In Kota region, it is setup in2003. The e-choupal

redefines choupal Hindi word to village squares where elders

meet to discuss important matters. ITC installed charge

batteries with solar power to provide electricity.

FUNCTIONING OF SERVICE CENTRE

A local farmer called "sanchalak" operates the computer in

behalf of the farmer and earn commission on every sale and

purchase through e-choupal.

E-choupal provides farmers and village community five

distinct services.

Information: Movies on latest farm techniques, weather

forecasts and expert advice on email.

Knowledge: Soil testing, other method related to crop,

mostly advised through agricultural universities.

Purchase: Internet access to buy seeds, fertilizer, consumer

products and insurance policies.

Sales: Farmers cam sell their crop to ITC after checking daily

rates online.

Development work: NGO working for cattle breed

improvement and water harvesting and women self help

group also reaching the village through e -choupal.

Under ITC e-choupal providing training to agents related to

computer/internet operation. Sanchalak

Agents must be selected based on villager trust.

at the time to sell the e-choupal help the farmers by breaking the

monopoly of local markets that are controlled by trade cartels.

For farmers it is win-win situation. Sitting in their village, they

can check the purchase price at the Mandi and ITC centre

through e-choupal. The company uses electronic weighing

machine, better testing facilities and ensure spot payment.

Objective: The main objective of ITC is better prices to the

farmers and gets information regarding technology.

S.No.� Designation� No. of Post

1.� Hub In-charge� 1

2.� Hub Commercial� 2

3.� Godown officer� 4

4.� Field coordinator� 6

INDIAN FARMERS FERTILIZER

COOPERATIVE LTD. (IFFCO)

IFFCO was registered on November 3, 1967 as a multi unit

cooperative society. The society is primarily engaged in

production of fertilizers. The distribution of IFFCO's

fertilizers. The distribution of IFFCO's fertilizers. The

distribution of IFFCO's fertilizers is undertaken through over

36000 co-operatives societies. IFFCO obsessively nurtures its

relations with farmers and undertake large number of activities

for their benefit every year. In Kota, it was set up by 1978.

Extension services:

Village adoption, health camp, veterinary camp, distribution

of duster and sprayer, soil testing, farmer meeting, field

demonstration

Manpower involved: Area Manager, manger agri services,

accounts officer, data entry operator

Objective: To provide good quality fertilisers and latest

agricultural technology to the farming community.

KRISHAK BHARTIYA COOPERATIVE LTD.

(KRIBHCO)

KRIBHCO a premier co-operative society for manufacture

of fertilizer, registered under multi state cooperative societies

act 1985, was promoted by government of India, IFFCO,

NCDC and other agricultural co-operative societies spread

all over the country. In Kota region, it was set up in 1986.

Extension services:

Village adoption, health camp, veterinary camp, distribution

of duster and sprayer, soil testing and community centre

Work force Involved: Marketing manager, assistant

marketing manager

Objective: Increase economic conditions of the farmers.

To access the role of private extension services with aim to

fulfil the needs of farmers:

Table 1: Farmer's response towards the extension services

provided by different companies.

as table 4.1 revealed, farmers meeting is the activity, which is

benefited most of the farmers, about 64% respondent are

feeling benefited out of it and almost all the companies are

the recognized it importance. MSSL followed by CFCL and

DSCL are the main players among the entire private player

studied.


S.No Question CFCL MSSL DSCL IFFCO KRIBHCO ITC TOTAL

cases cases cases cases cases cases No. of No. of No. of No. of No. of No. of No. of

cases

1. Soil testing

facilities

10 7 9 5 7 0 38

2. Veterinary

facilities

12 5 7 9 6 0 39

3. Demonstration 8 3 10 7 9 0 37

4. Women related program

11 5 6 6 4 0 32

5. Farmers meeting 10 12 9 10 9 8 58

6. Crop seminar 6 10 7 9 6 0 38

7. Field visit 8 10 12 6 8 0 44

8. Farm advisory services

11 9 9 10 6 0 45

9. Agricultural

implement supply

service

8 0 0 6 10 0 24

10 Farm clinic & contact farming

9 11 13 6 9 7 55

Figure 1 percentage of farmers benefited by farmers meeting

The concept of farm clinic and contract farming is also

attracting farmers; about 61% farmers are observed direct

benefit from this. Although this is new concept as par as poor

farmers of Rajasthan are concern but mutual benefits, both

the farmers and companies are associated with it are

recognizing many tangible benefits. For farmers, assured

marketing of produce, timely input availability , better price

realisation, new technology availability etc. are the benefits

and for company quality and quantity to produce , timely and

assured supply of produce of the benefits for the company.

DSCL and MSSL are main companies working efficiently in

the area.Figure 4 : % of farmers benefitted by field visit

As far CFCL services are concerned, it is providing some of

the services very efficiently to the farmers like, veterinary

services, farm women development program, soil testing

facilities etc. but the services like crop demonstrations , crop

seminars and agricultural implements are needed to be

improved.

Figure 2: % of farmer's awareness about farm clinic and

contract farming

Farmers response for farm advisory services (50%) and field

visit (48%) are also found positive for most of the companies

and information's related new varieties, new molecules of

pesticides, disease infestation, other recommendations for

the crop are given. CFCL is working very effectively as far as

far advisory services are concerned but the farmers are mot

found satisfied with the visits of the field staff of CFCL.

Figure 6 percentage of the farmers benefitted by woman

related program

Figure 3: % of farmers benefitted by farm advisory services

Figure 5 :% of farmers benefitted by veterinary facilities


Figure 7: % of the farmers benefitted by soil testing facilities

ITC is the company, which is recently involved in the farmers

meeting and farm clinic and contract farming as they have

started their procurement work form Rajasthan.

Suggestion for improvement of uttam 30 of CFCL

milestone project

Company should provide crop seminar facility to the

farmers to improve the crop performance in terms of the

productivity, quality, benefit cost ratio etc.

Supply of agricul tural implements and good

demonstrations can easily help farmers for new variety or

technology. CFCL increase the number of demonstration

on the farmer's fields.

Currently CFCL is doing contact farming only for

medicinal plants.

CONCLUSION

The responses of the farmers validate the need of the

stimulating private extension. Another strong reason for

private extension is shrinking resources of the public

organization and there may be chance that public extension

organizations will likely be financially constrained which

would force them to withdraw from areas which can be

served by private extension systems.

Again, there is an apprehension that private extension

services usually concentrate in horticulture, floriculture, and

other commercial crops, which have both domestic and

global markets only the so called progressive and wealthy

farmers would be utilizing these services as they can afford to

pay the services.

it is clear from study that mostly companies are given more

emphasis to the farm advisory services and farmers meeting

to improve the technical knowledge of the farmer with

income.

Hence, in order to achieve overall department of all classes of

rural population, there is urgent need for polices and schemes

for development of all classes of rural population and

appropriate introduction / transfer of agriculture and allied

technology based on market assurance and tangible benefit to

rural community.

REFERENCES

Ameur, C (1994), Agricultural Extension. A Step beyond

the next step, World Bank Technical Paper, No 247, The

World Bank, Washington D.C., USA.

Anholt, (1994), Getting ready for the twenty first century-

technical change and institutional paper, No 247, the

World Bank, Washington D.C., USA.

Bloome, P.(1993), Privatization lessons for US extension

from New Zealand and Tasmania, Journal of Extension,

Spring, 1993.

Dinar, A. (1996), Extension Commercialization: How

much to charge for extension services, American journal

of Agricultural Economics, 78(1): 1-12.

Gupta, S.L. and Agarwal, N.L(1999), Agricultural

Marketing in India Oxford and IBH publishing company,

New Delhi, pp 23.

Hansra and Adhiguru (1998), Agriculture transfer of

technology approaches since independence, Indian

Journal of extension, 9(4), pp. 12-14.

Hassanullah (1999), Agricultural extension services of

the 21st century needs and challenges, presented in

regional symposium of agricultural extension education,

Mymen Singh, 18-24, April, 1999, Bangladesh.

Kotler, P (2000), Marketing Research, Prentice-Hall

India, New Delhi, p-34

Shekhar, P.C (2001), Private Extension-Indian

Experiences, National Institute of Agricultural

Management, Heritage Print Services Pvt. Ltd.,

Nallakunta, Hyderabad.

Sulaiman and Gadewar(1994), Privatizing Farm

Extension- Some Issues Internal Workshop on alternative

and cost effective approaches: Methodological Issues

proceedings and selected theme papers, organised by ford

foundation, FAO and TNAU , Coimbatore, ( Sept 14-17,

1994), pp 55-60

Sulaiman V.(2012), Agricultural extension in India:

Current status and ways forward, Centre for Research on

Innovation and Science Policy (CRISP) Hyderabad, India

Website: ITC, India today, dscl.com, mssl.com, times of

india.com, agriwathc.com, indiaagronet.com.


ABSTRACT

The many developing countries in the world mostly lagging behind because of the illiteracy about finance. The developing

country like India must haveto the concentration on the area like financial inclusion for long term basis. The Financial

inclusion is the delivery of financial servicesandproducts at reasonable costs to that backward and unbanked part of society,

which is not covered under the area of formal banking.An economy can be both economically and socially sound, only

when each and every person in the society is financial independent. The Indian Government under the guidance of Hon.

Prime Minister Narendra Modi has taken various initiatives for the financial inclusion through the PradhanMantri Jan-

DhanYojana, SampoornaVittiyaSamaveshan, Pradhan Mantri Suraksha BimaYojana, and Atal Pension Yojna and also

announce the digital India Programme. The Government of India also has taken the initiatives on 8th of December 2016 that

was the Demonetization of currency notes and form that action there has been seen the great financial inclusion in the

country. Every person from the country visited the bank for changing their currency notes.

The paper highlights the basic need and significance of financial inclusion and analyzes how this concept enters into the

Indian through the Digital India Programme. It alsoanalyze the effective measures implemented by the government and

Reserve Bank of India in this direction.The basic objectives of this paper are to study the importance of Financial Inclusion

for the growth of Indian Economy, To study the importance of Digital India programme for the development,To study the

various programmes run by the Government for the financial inclusion,To study the impact andresults of financial inclusion

programme run by the government. The paper also discusses the challenges that India is facing today and their probable

solutions with respect to financial Inclusion.The major findings of the papers are Private Banks is found mainly focusing

upon the profitable customers and avoiding weaker section of the society.The women are lagging behind in the enjoying

financial services available in the market.

Keywords - Digital India, Financial Inclusion, Government, Banks, Inclusive Growth, Financial Services.

INTRODUCTION

Over the past two decades, India has implemented a wide-

range of reforms, opening up the economy, and narrowing

the gaps in the living standards of its people. Yet, a huge

chunk of the country's population is socially and

economically excluded. It becomes imperative that social

inclusion is made possible better with Financial Inclusion.

In the war against poverty, Financial Inclusion has emerged

as a priority for policy makers andregulators in over 60

developing countries across the globe. An increasing number

of countries have introduced or introducing holistic

approaches and methods to improve access to finance.

In India, though the activity of financial inclusion started as

early as 1950, from the year 2005 onwardsfinancial inclusion

has been considered a Policy Priority for Reserve Bank of

India (RBI), India's central bank, which has given several

directions and guidelines during the past one decade. It looks

at FI as an effective tool for inclusive growth ensuring

equality of opportunity for all. RBI has been focusing

onfacilitating a process of making available a range of

appropriate financial products and services to the

underprivileged sections of the Indian Society at an

affordable cost.

Keeping a credit delivery focus, RBI has given guidelines to

banks in the country encouraging financialinclusion such as

TO STUDY THE FINANCIAL INCLUSION THROUGH THE

DIGITAL INDIA PROGRAMME

Dr. Sudarshan Arjun GiramkarBPVT, Group of Institutions, Institute of Management, Ahmedagar


implementation through the banks and dis-incentivizing

those banks which are not responsive to the community

including the underprivileged. Banks have been urged to

align their existing practices with the objectives of financial

inclusion. The Demonetization of currency notes is declared

by the Prime Minister on 8th Dec 2016 and it was also the one

of the great factor of the financial inclusion. Every corner of

the country has seen the long lines in front of the banks for

changing their currency notes.

INITIATIVES TAKEN BY GOVERNMENT

OF INDIA

The Indian government has taking various initiatives for the

purpose of financial inclusion for the development purpose

through the various activities like Digital India Programme,

PradhanMantri Jan-DhanYojana, SampoornaVittiya

Samaveshan, Pradhan Mantri Suraksha BimaYojana, Atal

Pension Yojna, etc,. On 25 August 2014, the RBI Governor

RaghuramRajan outlined the real meaning offinancial

inclusion for India. He said that “Simplicity and reliability in

financial inclusion inIndia, though not a cure all, can be a way

of liberating the poor from dependence onindifferently

delivered public services and from venal politicians”.

Further, he added, “Inorder to draw the poor, the products

should address their needs - a safe place to save, areliable

way to send and receive money, a quick way to borrow in

times of need or to escapethe clutches of the money lender,

easy to understand life and health insurance and an avenue to

engage in savings for the old age.” For achieving this target,

the RBI will accordingly nudge banks to offer such basic

suite of services.

He added that while over the years the government has taken

several steps to spread thebanking habit, formidable tasks lie

ahead. As of the 24.67 crore households in the country,10.19

crore do not have access to banking services. In rural areas,

44 per cent households and in urban areas 33 per cent still do

not have a bank account.

DIGITAL INDIA (DI)

In an order to create transparent, responsive, participative

government and to give a big pushto Financial Inclusion

target, Prime Minister NarendraModi launched the much

ambitious'Digital India' programme on July 1, 2015. This

will be for prepare India for the knowledgebased

transformation and deliver good governance to citizens by

synchronized and coordinatedengagement with both Central

Government and State Government.

The vision of Digital India programme aims at inclusive

growth in areas of electronicservices, products,

manufacturing and job opportunities etc. The vision of

Digital India iscentred on three main key areas:

(i) Digital Infrastructure as a utility to every citizen

(ii) Governance & services on demand

(iii) Digital Empowerment of citizens

The Digital India programme aims to provide broadband

highways, universal access tomobile connectivity, public

internet access programme, e-governance: Reforming

government through technology, eKranti - Electronic

delivery of services, Information for all,Electronics

manufacturing: Target net zero imports, IT for jobs and early

harvestprogrammes.

Some of the key areas of concern include:

1) Digital Locker System aims to minimize the usage of

physical documents and enablesharing of e-documents

across agencies. The sharing of the e-documents will

be done throughregistered repositories thereby

ensuring the authenticity of the documents online, says

thegovernment.

2) MyGov.in has been implemented as a platform for

citizen engagement in governance,through a

"Discuss", "Do" and "Disseminate" approach. The

mobile app for MyGov wouldbring these features to

users on a mobile phone.

Table: Financial Inclusion steps by Government of India.

Period Process Phase Steps Taken

1950-1970

Consolidation of Banking

Sector and facilitation of

Industry and Trade

1970-1990

Focus of Channeling of Credit

to neglected sectors and weaker

section

1990-2005

Focus on strengthening the

nancial institutions as part of

nancial sector reforms

2005-2015

Financ ia l Inc lus ion was

explicitly made as a policy

objective

From2015

Digital India Programme

announce on 1 July 2015

2016Demonetization of currency

notes

- Co-operative Movement

- Setting up of State Bank of India

- Natio-nalization of Banks

- Lead Bank Scheme

- Regional Rural Banks

- Service Area Approach

- Self Help Groups

- BCs& BFs concept

- Replacement of 500 and 1000 notes.

3) Swachh Bharat Mission (SBM) Mobile app would be

used by people and Governmentorganizations for

achieving the goals of Swachh Bharat Mission.

4) eSign framework would allow citizens to digitally sign

a document online using Aadhaarauthentication.

5) The Online Registration System (ORS) under the

eHospital application has beenintroduced. This

application provides important services such as online

registration, paymentof fees and appointment, online

diagnostic reports, enquiring availability of blood

online etc,the government claims.

6) National Scholarships Portal is said to be a one stop

solution for end to end scholarship process right from

submission of student application, verification,

sanction and disbursal to end beneficiary for all the

scholarships provided by the Government of India.

7) DeitY has undertaken an initiative namely Digitize

India Platform (DIP) for large scaledigitization of

records in the country that would facilitate efficient

delivery of services to thecitizens.

8) The Government of India has undertaken an initiative

namely Bharat Net, a high speeddigital highway to

connect all 2.5 lakh Gram Panchayats of country. This

would be theworld's largest rural broadband

connectivity project using optical fibre.

9) Policy initiatives have also been undertaken by DeitY

in the e-Governance domain like e-Kranti Framework,

Policy on Adoption of Open Source Software for

Government of India, Framework for Adoption of

Open Source Software in e-Governance Systems etc.

10) BSNL has introduced Next Generation Network

(NGN), to replace 30 year oldexchanges, which is an IP

based technology to manage all types of services like

voice, data, multimedia/video and other types of packet

switched communication services.

11) BSNL has undertaken large scale deployment of Wi-Fi

hotspots throughout the country.The user can latch on

the BSNL Wi-Fi network through their mobile devices.

12) BPO Policy has been approved to create BPO centres in

different North Eastern statesand also in smaller /

mofussil towns of other states.

13) Electronics Development Fund (EDF) Policy aims to

promote Innovation, R&D, andProduct Development

and to create a resource pool of IP within the country to

create a self-sustainingeco-system of Venture Funds.

14) National Centre for Flexible Electronics (NCFlexE) is

an initiative of Government ofIndia to promote

research and innovation in the emerging area of

Flexible Electronics.

15) Centre of Excellence on Internet on Things (IoT) is a

joint initiative of Department ofElectronics &

Information Technology (DeitY), ERNET and

NASSCOM.

PRADHAN MANTRI JAN-DHANYOJANA

(PMJDY)

Indian Prime Minister NarendraModi announced this

scheme for comprehensive financialinclusion on his first

Independence Day speech on 15 August 2014. The scheme

was formallylaunched on 28 August 2014 with a target to

provide 'universal access to banking facilities toall'.

The basic objective of “Pradhan Mantri Jan-DhanYojana

(PMJDY)” is to ensure access tovarious financial services

like availability of basic savings bank account, access to need

basedcredit, remittances facility, insurance and pension to

the excluded sections i.e. weakersections and low income

groups. PMJDY is a National Mission on Financial Inclusion

planencompassing an integrated approach to bring about

comprehensive financial inclusion of allthe households in

the country. The plan envisages universal access to banking

facilities withat least one basic bank account for each

household, introducing financial literacy, easy accessto

credit, insurance and pension facility. In addition, the

beneficiaries would get RuPay Debitcard having inbuilt

accident insurance cover of Rs. 1 lakh. The plan also foresees

tochannelize all Government benefits (from Centre / State /

Local Body) to the beneficiariesaccounts and pushing the

Direct Benefits Transfer (DBT) scheme of the Union

Government.

The technological issues like poor connectivity, on-line

transactions will also be addressed inthis. For the successful

implementation of PMJDY, the detailed framework was laid

down. Itincludes the following steps:

(1) The business correspondent model should be extended

to include entities such as kiranashops, corporates and

others. It is obvious that Business Correspondents

(BCs) need to beproperly remunerated and have the

full support of banks. Banks have tied up with

commonservice centres (CSCs) as BCs.

(2) Insistence on KYC (know your customer) norms has

hindered the opening of newaccounts even in urban

areas. Great significance is, therefore, attached to e-

KYCs, in whichtheAadhaar plays an extremely useful

role.


(3) Since mobile banking through phones is to play an

increasingly important role in ascenario where

physical bank branches will be few, greater co-

ordination between mobiletelephone companies and

banks will be taken care of.

(4) Greater emphasis will laid upon the commercial

viability of the project, as this will be theultimate key

to the programme's success.

SAMPOORNAVITTIYASAMAVESHAN

(SVS)

A plan of the Union government to cover the unbanked (10

crore uncovered households)households, they introduced

c o m p r e h e n s i v e f i n a n c i a l i n c l u s i o n p l a n

SampoornaVittiyaSamaveshan (SVS) plan, in August, 2014,

to extend coverage of basic financial services to allexcluded

households. This plan also targets that one account has to be

opened for a ladymember of each household. In the first

phase, it attempt to provide universal access to all

thebeneficiaries through sub-service areas (SSAs). Each

SSA consist of 100-1,500 families in acluster of villages and

each SSA will be serviced by a BC agent (BCA) whose task it

will beto facilitate account opening and smooth banking

operation. The latest inclusion plan has itsfocus on

households rather than geographical areas. After satisfactory

conduct of accounts, itis proposed to offer reasonable need-

based credit facilities for which overdraft facilities willbe

sanctioned. A smart card (RuPay card) will be issued to

enable customers to operate theiraccounts even without BCs.

Simultaneously suitable awareness will be created among

thefinancially excluded.

PRADHAN MANTRI SURAKSHA BIMA

YOJANAAND PRADHAN MANTRI

JEEVAN JYOTI BIMA YOJANA

Pradhan MantriSurakshaBimaYojana has been launched by

government, June 2015, toprovide access of insurance to

vulnerable section of society at affordable cost. It is

anAccident Insurance Scheme offering accidental death and

disability cover for death ordisability on account of an

accident. The scheme is a one year cover, renewable from

year toyear. The scheme has been offered by all Public Sector

General Insurance Companies and allother insurers having

tie-up with banks.The premium paid will be tax-free under

section 80Cand also the proceeds amount will get tax-

e x e m p t i o n u / s 1 0 ( 1 0 D ) . P r a d h a n

MantriJeevanJyotiBimaYojana, June 2015, was another step

taken by government for improving financialinclusion. This

scheme provides life insurance to poor and to vulnerable

section of society ataffordable cost. The scheme is a one year

cover, renewable from year to year, InsuranceScheme

offering life insurance cover for death due to any reason. The

scheme would beoffered / administered through LIC and

other Life Insurance companies having tie-up withbanks.

ATAL PENSION YOJNA (APY)

The scheme was launched on June 1 2015. The Government

of India is concerned about theOldageincome security of the

working poor and to vulnerable section of society and

isfocused on encouraging and enabling them to save for their

retirement. . A pension providespeople with a monthly

income when they are no longer earning. The APY is focused

on allcitizens in the unorganized sector. Under the Atal

Pension Yojna Scheme (APY), the subscribers,under the age

of 40, would receive the fixed monthly pension of Rs. 1000 to

Rs5000 at the age of 60 years, depending on their

contributions. The benefit of minimumpension would be

guaranteed by the government, as government also co-

contribute 50 percent of a subscriber's contribution or Rs

1 ,000 per annum, whichever i s lower to each

eligiblesubscriber account for a period of of 5 years from

2015-16 to 2019-20.

DEMONETIZATION OF CURRENCY

NOTES

The Demonetization of currency notes is declared by the

Prime Minister on 8th Dec 2016 and it was also the one of the

great factor of the financial inclusion. Every corner of the

country has seen the long lines in front of the banks for

changing their currency notes.

RATIONALE OF THE STUDY

The present study is designed to focus on the subject of

financial inclusion through the Digital India programme. The

government of India announces their ambitious project that is

Digital India programme. The same programme is having the

concentration on the different nine parameters; one of the

important one is financial inclusion. For the development

purpose the financial inclusion is necessary because only

through this programme the weaker section and women's are

also become the part of the banking system in the country.

Hence this Digital India programme is having the great

importance.

STATEMENT OF THE PROBLEM

Today it is found from the several study in India that peoples

are lagging behind in the enjoying banking and financial

services. For the development of the nation there should be

proper financial inclusion at all the levels of economy. The

government of India is also taking the initiatives through the

various programme for the financial inclusion. But it is the

need of the day to increase the financial inclusion. The

Government of India launches the one programme that is

digital India in that also the financial inclusion had given the

more weightage; hence the researcher has selected the topic

“To Study the Financial Inclusion Through the Digital India

Programme” for the present study.

OBJECTIVES OF THE STUDY

1. To study the importance of Financial Inclusion for the

growth of Indian Economy.

2. To study the importance of Digital India programme for

the development of the nation.

3. To study the various programmes run by the Government

for the financial inclusion.

4. To study the impact andresults of financial inclusion

programme run by the government.

LITERATURE REVIEW

Almost all studies have more or less concluded that Financial

Literacy is a crucial part of the financial inclusion.A majority

of the respondents willing for repeated programmes also

confirm this belief. In the wake of rapid invasion of

technology across the world it also becomes imminent that

ICT plays an important role in the financial inclusion and it is

strongly advised that the financial literacy curriculum

includes technological interventions in a bid to reach quicker

and cost effective as also secure financial products and

services to the needy.

Shri K. C. Chakraborty as Chairman and Managing Director,

Indian Bank said that “FinancialExclusion is the lack of

access by certain consumers to appropriate low cost, fair and

safe financial products and services from the main stream

providers”. He added that “There is a large overlap between

poverty and permanent financial exclusion. Both poverty and

financial exclusion result in a reduction of choices which

affects social interaction and leads to reduced participation in

society”.

According to the Planning Commission (2009), financial

inclusion refers to universal access to a wide range of

financial services at a reasonable cost. These include not only

banking products but also other financial services such as

insurance and equity products. The household access to

financial services includes access to contingency planning,

credit and wealth creation. Access to contingency planning

would help for future savings such as retirement savings,

buffer savings and insurable contingencies and access to

credit includes emergency loans, housing loans and

consumption loans. On the other hand, access to wealth

creation includes savings and investment based on

household's level of financial literacy and risk perception.

According to Chakraborty (2011), financial inclusion is the

process of ensuring access to appropriate financial products

and services needed by all sections of society including

vulnerable groups such as weaker sections and low income

groups at an affordable cost in a fair and transparent manner

by mainstream institutional players. This issue started

gaining importance recently in the news media. However, as

is the case with several issues in India, financial inclusion has

remained a pipe dream with a majority of Indians continuing

to lack access to banking services.

METHODOLOGY

The present study is based on the primary as well as

secondary data. The sample primarily consists of women

( 7 0 % ) w h o h a d u n d e rg o n e f i n a n c i a l l i t e r a c y

programmes.Moreover, the majority of the respondents

belonged to unbanked and poor classes, who have less

accessto financial institutions and their services. This poses a

question that biasness towards women for financial literacy

programmes may not be theright approach to financial

inclusion. The reason is twofold. First, mostly the financial

decision makingis taken by the men and second, they do

transact more outside, including financial institutions.

Formaking poor households financially included, equal

importance should be given to training of men onfinancial

literacy and this could lead to a greater impact.

FINDINGS

1. The financial products available in the market is not up to

the requirement of every customers.

2. The Infrastructural facility and the latest technology is

not properly available to the banks and the financial

institutions for the purpose of attracting the more

customers.

3. The Private Banks are found mainly focusing upon the

profitable customers and avoiding weaker section of the

society.

4. There is not proper Financial Awareness among the all

levels of the people.

5. The process and requirement of the documentations is

difficult in the financial system of the country

6. The staffing policies and doorstep banking is not

properly provided by the banks and the financial

institutions.


7. The woman are lagging behind in the enjoying financial

services available in the market

SUGGESTIONS

1. The financial products should be customized for getting

the more financial inclusion at all levels of the economy.

2. The Infrastructural Up-gradation and the proper latest

technology is needed for attracting more people for the

financial inclusion.

3. The Private Banks Participation should be compulsorily

increase to the financial inclusion and financial services

to all levels of the economy.

4. The Financial Awareness programmes should be

arranged by Government, Banks and financial

Institutions for the financial inclusion.

5. For the increasing financial inclusion by the people there

is need of Simplification of documentation and the

procedure.

6. For getting the proper financial inclusion there is need of

better staffing policies and doorstep banking by the

banks and financial Institutions.

CONCLUSION

To sum up, financial inclusion is the road that India needs to

travel toward becoming a globalplayer. Recently, Indian

financial inclusion advocates enjoyed a brief victory lap and

aninternational spotlight in January, 2015 with a renewed

push. On January 20, Indian FinanceMinister ArunJaitley

was presented with a Guinness World Record for the fastest

financialinclusion roll-out in history, the Pradhan Mantri Jan

DhanYojana (PMJDY). During oneweek, between 23 and 29

August 2014, around 18,096,130 bank accounts were

openedthrough this national inclusion strategy. The recent

much ambitious 'Digital India' programmewill also provide

the intensified impetus for further momentum and progress

for e-Governance and would promote inclusive growth that

covers electronic services, products,devices, manufacturing

and job opportunities. But, for standing out on a global

platform,India has to pay attention upon the real

implementation of financial inclusion initiatives, as akey for

inclusive growth and integrated development. There is a long

way to go for thefinancial inclusion mission to reach to the

core poor. Reserve Bank of India has directed that all

branches of banks across the country should ensure financial

inclusion in villages by harnessing low cost technology and

by innovating low cost business models. It has approved

Financial Inclusion Plans to be rolled out by banks over a

period of three years. RBI has also directed to include criteria

regarding Financial Literacy and Inclusion in performance

evaluation of the staff. Looking at the global picture, on May

6,2015, IMF Chief Christine Lagarde said that “Nearly two

billion people globally do not havebank accounts including

those in the US”, meaning that financial systems around the

worlddespite being sizable exclude many individuals from

financial services. She added that “Itrequires supervisors and

regulators to work on managing risks and to work together.

Itrequires building resilience in all countries. It requires

realignment between corporate cultureand societal

objectives”. In Indian context, it means that mere opening of

no-frill bankaccounts is not the purpose or the end of

financial inclusion, while formal financialinstitutions and

banks must gain the trust and goodwill of the unbanked

population throughdeveloping strong linkages with

community-based financial ventures and cooperative.

Financial Inclusion has not yielded the desired results yet and

there is long road ahead. Itrequires government, supervisory

agencies and legal regulators to work in a more

integrated,unified manner so as to accomplish this mission of

real financial inclusion.

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Managing Editor