JOB SATISFACTION IN SERVICE INDUSTRIES: AN EMPIRICAL CASE STUDY

T.RAJESH, M.Com., Assistant Professor, Mannaniya College of Arts and Science, Pangode, Thiruvananthapuram, Kerala, India.

ABSTRACT Job satisfaction is perhaps the most important aspect in any professional field in order to excel. The present study intends to make an empirical investigation into the job satisfaction of employees in hotel industry in Kerala, an imperative and venerable service sector. The empirical study is based on variables viz. remuneration, labour attrition, periodical assessment system, desire to continue in the present organization and overall job satisfaction are the variables used for the study. The study concludes that job satisfaction of employees in the hotel industry, the most prominent service industry in Kerala, is not satisfactory. Key words: Assessment system, Job satisfaction, Labour attrition. INTRODUCTION If a Nation aspires to grow into a global economic force, it cannot ignore the relatable management of its most precious natural resource-people. The immediate concern of people management now is finding the ways and means of ensuring employee satisfaction with the eventual goal of bringing out the best in the human resource of any industry. This employeefriendly attitude is adopted by industrial firms ensuing on the awareness that monetary and incentives and facilities offered to the employees are more an investment than expenditure. The satisfaction and dissatisfaction with the job assigned affect the employees in every walk of life as you are what you do for a living and how you find about it. A satisfied employee enjoys better physical and mental well being and is more productive. Hence it is argued that only satisfied employees can make quality products or can render quality services and hence job satisfaction is of vital importance in a service industry. SIGNIFICANCE OF THE STUDY The present study intends to make an empirical investigation into the job satisfaction of employees in hotel industry, an imperative and venerable service sector in Kerala. The management of people in hotels and catering services in Kerala has traditionally been regarded as poor, with considerable evidence of low remuneration, long hours of work, low promotional avenues, low social acceptance, high work load, poor management relation, etc. All these pitfalls are mainly on account of poor HR practices. As a result the cream of the jobseeking youth is averse to accepting the job openings in the industry. Hence finding the apt personnel for job vacancies in the industry is rather difficult and results in the considerable deployment of casual and part-time work force. Thus, the net result is widespread dissatisfaction among employees affecting their motivation to work. Inevitably, it leads to the decline of their commitment towards the organization. In order to develop this service industry in a sustainable manner, there is an urgent need to revamp the situation and to have an appropriate HR practice. Such a change is needed not for the development of hotel industry alone but all the service and hospitality industry in toto. The study purports to gather the opinions of employees and to arrive at a rational inference regarding the nature of job satisfaction in the classified hotels in Kerala. Remuneration, labour attrition, periodical assessment system, desire to

continue in the present organization and overall job satisfaction are the variables used for the study.

analysis, statistical tools such as average, percentages, chi-square test, and MannWhitney U test were used.

METHODOLOGY RESULTS AND DISCUSSION The population for the study consists of 1. Remuneration employees of classified hotels in Kerala. In Generally when we are talking about Kerala, there were 235 classified hotels as remuneration in the service industry, we on 31-03-2009 (consisting of 15 five star can start with a fairly negative observation hotels, 18 four star hotels and 202 three that compared to other industries the star hotels). For intensive study, 20 per majority of jobs and occupations within cent from each category of hotels is the sector are poorly remunerated (Lucas, selected at random. Thus, the total number 2004). On evaluating the employees of hotels selected as sample has come to perception of the adequacy of pay 47 (three from five star, four from four star packages, it is understood that up to two and 40 from three star). The respondents thirds (65 per cent) of the employees are of for the study consist of the employees of the opinion that the pay package allowed the sample hotels. There were 2151 by the organization does not fully match employees in the 47 sample hotels as on with the work load/working hours (Table 31-03-2009. From them, 20 per cent 1). This is a common viewpoint both in (consist of 62 form 3 five star hotels, 64 KTDC (64.4 per cent) and private hotels from 4 four star hotels and 304 from 40 (65.4 per cent). The chi square analysis three star hotels) were selected at random. also establishes this observation (p>.05). Thus, the total sample employees selected The Mann- Whitney U test also reveals for the intensive study has come to 430. that the employees both in KTDC and the The empirical study makes use of primary private sector hotels hold a similar data only and was collected from the viewpoint regarding the pay package sample respondents by administering a (p>.05). structured interview schedule. For data Table 1: Unattractive Remuneration Private Responses Fully Agree Thre e Star 113 (49.3 ) 47 (20.5 ) 12 (5.2) Four Star 16 (44.4 ) 8 (22.2 ) 2 (5.6) Five Star 14 (29.8 ) 6 (12.8 ) 5 (10.6 ) 6 (12.8 ) 16 (34.0 ) Total 143 (45.8) 61 (19.6) 19 6.1 Three Star 40 (53.3) 9 (12.0) 8 (10.7) KTDC Four Star 10 (35.7) 7 (25.0) 6 (21.4) Five Star 9 (60.0) 1 (6.7) 3 (20.0) Total 59 (50.0 ) 17 (14.4 ) 17 (14.4 ) 8 (6.8) 17 (14.4 ) Total 202 (46.9) 78 (18.1) 36 (8.3)

Partly Agree Neither agree Nor Disagree Disagree

19 (8.3) 38 (16.6 )

Highly Disagree

4 (11.1 ) 6 (16.7 )

29 (9.2) 60 (19.2)

5 (6.7) 13 (17.3)

3 (10.7) 2 (7.1)

2 (13.3)

37 (8.6) 77 (17.9)

229 36 47 312 75 28 15 118 430 (100) (100) (100) (100) (100) (100) (100) (100) (100) Source: Primary data. Figures in parentheses are percentages to respective totals. Three star- Chi-square (df =4) =5.144; p value = .273** Four star- Chi-square (df =4) =4.667;p value =.323** Five star- Chi-square (df =4) =7.540; p value = .110** * Significant at 5% level.. ** Not significant at 5% level. Total 2. Labour Attrition Most hotels are able to recruit talented and highly motivated employees. However, they seem to have difficulty in retaining newcomers and arousing their organizational commitment. In fact, the hotel industry is facing ever-rising labor costs, which include not only the actual salary paid to new competent employees but also the costs of attracting and retaining them. High employee turnover affects the quality of products and services. Because most turnovers among new employees of the hotel industry occur during the early stages of employment and the impact on organizational commitment is tremendous affecting the successful delivery of services to guests.

Table 2: Labour Attrition Responses Fully Agree Partly Agree Neither agree Nor Disagree Disagree Private Three Four Five Total Star Star Star 143 17 14 174 (62.4) (47.2) (29.8) (55.8) 46 5 5 56 (20.1) (13.9) (10.6) (17.9) 11 5 6 22 (4.8) (13.9) (12.8) (7.1) KTDC Three Star 35 (46.7) 10 (13.3) 6 (8.0) Four Five Total Star Star 8 8 51 (28.6) (53.3) (43.2) 2 1 13 (7.1) (6.7) (11.0) 3 1 10 (10.7) (6.7) (8.5) Total 225 (52.3) 69 (16.4) 32 (7.4)

11 5 9 25 10 11 1 22 47 (4.8) (13.9) (19.1) (8.1) (13.3) (39.3) (6.7) (18.6) (10.9) Highly 18 4 13 35 14 4 4 22 57 Disagree (7.9) (11.1) (27.7) (11.2) (18.7) (14.3) (26.7) (18.6) (13.3) 229 36 47 312 75 28 15 118 430 Total (100) (100) (100) (100) (100) (100) (100) (100) (100) Source: Primary data Figures in parentheses are percentages to respective totals Three star- Chi-square (df =4) =17.052; p value = .002* Four star- Chi-square (df =4) =6.375;p value =.173** Five star- Chi-square (df =4) =3.439; p value = .487** * Significant at 5% level. ** Not significant at 5% level. On analyzing the employees response to the question whether there is labour turnover in the early stages of employment it is found that more than two thirds (68.7 per cent) agree fully or partly that good a number professionals leave the organization in the initial period of employment. On comparing sector-wise, private sector employees (73.7 per cent) agree to the statement more than the KTDC employees (56.2 per cent). The chi square shows that there is significant difference in opinion among the employees in three star hotels in the private sector and KTDC. The MannWhitney U test (Table 2) proves that there is significant difference in opinion among the employees in the private sector and

KTDC and labor turnover in the initial period is comparatively higher in private sector as the median value is higher in that sector.

3. Periodical Assessment System Assessment of job satisfaction measures the extent to which the staff perceives the organizational features of their work setting as providing opportunity for personal development and positive engagement with the organization. Such staff are likely to be happy with their supervision, consider their job prospects good, feel part of a team and feel able to use their abilities to the full (Edward. P and Wright, M, 1998). On examining the opinion of employees as to whether there is the practice of assessing job satisfaction periodically, significant difference in the opinion of the employees can be found. Table 3: Periodical Assessment of Job Satisfaction Responses

43.9 per cent of employees agree that the company assesses the job satisfaction of employees periodically whereas 47.1 per cent of employees hold just the opposite view. This pattern of opinions can be observed in private sector also, but in KTDC hotels the situation is somewhat different. The chi square analysis shows that the difference in the opinion of employees belonging to three star and five star categories is significant (p<.05) whereas the difference in the opinion of employees in the four star category is not much significant (p>.05). While examining the opinion of employees through Mann- Whitney U test (Table 3) , the difference in opinion between the employees of KTDC and the private sector is also found significant (p<.05).

Private KTDC Three Four Five Three Four Five Total Total Star Star Star Star Star Star Fully Agree 69 10 31 110 11 7 4 22 (30.1) (27.8) (66.0) (35.2) (14.7) (25.0)) (26.7) (18.6) Partly Agree 25 8 4 37 10 3 1 14 (10.9) (22.2) (8.5) (11.9) (13.3) (10.7) (6.7) (11.9) Neither agree 24 4 4 32 10 2 12 Nor Disagree (10.5) (11.1) (8.5) (10.3) (13.3) (7.1) (10.2) Disagree 47 10 3 60 25 11 9 45 (20.5) (27.8) (6.4) (19.2) (33.3) (39.3) (60.0) (38.1) Highly 64 4 5 73 19 5 1 25 Disagree (20.5) (11.1) (10.6) (23.4) (25.3) (17.9) (6.7) (21.2) 229 36 47 312 75 28 15 118 Total (100) (100) (100) (100) (100) (100) (100) (100) Source: Primary data. Figures in parentheses are percentages to respective totals Three star- Chi-square (df =4) =9.887; p value = .042* Four star- Chi-square (df =4) =2.669;p value =.615 ** Five star- Chi-square (df =4) =25.509; p value = .000* * Significant at 5% level. ** Not significant at 5% level. 4. Desire to Continue in the Present Organization Desire to continue in an organization is an indication of organizational commitment. Employees who are highly satisfied with their jobs demonstrate greater loyalty and commitment to the organization. Commitment emphasizes an attachment to

Total 132 (32.1) 51 (11.8) 44 (10.2) 105 (24.4) 98 (22.7) 430 (100)

the employer, and is a response to the whole organization (Igbaria, Meredith and Smith, 1994). Greater commitment and loyalty are primary requisites in a service industry as the quality of the service is largely dependent upon the commitment of the employees. While taking the opinion of the employees as to why they continue in

an organization, up to three fourths (73.9 significant (p< .05) whereas in the case of per cent) stated that they stay on the five star and three star hotels, such organization not because they are satisfied significance is not found (Table 4). The with the working environment of the Mann- Whitney U test also depicts no organization. More than two thirds (65.8 significant difference in opinion between per cent) of the private sector and one half KTDC and the private sector on the (58.2 per cent) of KTDC employees question whether they stick to the present responded positively to the statement. As organization because of job satisfaction as per the chi square test the difference in the median value is the same in both opinion between four star sector categories(p>.05). employees in KTDC and private hotels is Table 4: Desire to Continue in the Present Organization Responses Fully Agree Three Star 122 (53.3) 43 (18.8) 10 (4.4) 19 (8.3) 35 (15.3) Private Four Five Star Star 15 (41.7) 8 (22.2) 2 (5.6) 3 (8.3) 8 (22.2) Three Star KTDC Four Five Star Star Total 204 (47.4) 71 (16.5) 28 (6.5) 49 (11.4) 77 (17.9) 430 (100)

Total

Total

15 152 38 7 7 52 (31.9) (48.7) (50.7) (25.0) (46.7) (44.1) 3 (6.4) 6 (12.8) 6 (12.8) 54 10 4 3 17 (17.3) (13.3) (14.3) (20.0) (14.1) 18 (5.8) 28 (8.9) 6 (8.0) 3 (10.7) 1 (6.7) 1 (6.7) 10 (8.5) 21 (17.8)

Partly Agree

Neither agree Nor Disagree Disagree

10 10 (13.3) (35.7)

Highly Disagree Total

17 60 11 4 3 17 (36.2) (19.2) (14.7) (14.3) (20.0) (14.1)

229 36 47 312 75 28 15 118 (100) (100) (100) (100) (100) (100) (100) (100) Source: Primary data. Figures in parentheses are percentages to respective totals Three star- Chi-square (df =4) =3.967; p value = .411** Four star- Chi-square (df =4) =8.681; p value =.070** Five star- Chi-square (df =4) =4.547; p value = .337** * Significant at 5% level. ** Not significant at 5% level

5. Overall Job Satisfaction Job satisfaction is the most frequently studied variable in organizational behavior (Spector, 1997). Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences (Locke, 1976). In relation to the job characteristics approach, the nature of an individuals job or the characteristics of the organization that the individual works for predominantly

determines job satisfaction (Jex, 2002). Research on job satisfaction is extensively carried out in all most all industries and also in different facets viz. works, pay, promotion, supervision, coworkers, etc. On analyzing the opinion of employees regarding the overall job satisfaction, it is clear that more than two thirds (69 per cent) of the employees either fully or partly agree that they are not satisfied with

their job in the organization. The sectorfour star and five star hotel employees is wise and star-wise analysis also reveals the not so significant (p>.05). The Mann same attitude. The chi square test also Whitney U test (Table 5) also shows that reveals that the difference in opinion the difference in opinion between the between employees in three star hotels of private sector and KTDC is statistically KTDC and the private sector is significant not so significant (p>.05). whereas the difference in opinion between Table 5: Overall Job Satisfaction of Employees Source: Primary data. Figures in parentheses are percentages to respective totals. Responses Fully Agree Partly Agree Neither agree Nor Disagree Disagree Private Three Star 122 (53.3) 46 (20.1) 17 (7.4) Four Star 15 (41.7) Five Total Star 21 158 (44.7) (50.6) KTDC Three Star 36 (48.0) Four Star 12 (42.9) Five Total Total Star 4 52 210 (26.7) (44.1) (48.8)

11 6 63 15 (30.6) (12.8) (20.2) (20.0) 3 (8.3) 4 (8.5) 24 (7.7) 5 (6.7)

4 5 24 87 (14.3) (33.3) (20.3) (20.2) 3 3 11 (10.7) (20.0) (9.3) 35 (8.1)

15 6 2 23 3 2 1 6 29 (6.6) (16.7) (4.3) (7.3) (4.0) (7.1) (6.7) (5.1) (6.7) Highly 29 1 14 44 16 7 2 25 69 Disagree (12.7) (2.8) (29.8) (14.1) (21.3) (25.0) (13.3) (21.2) (16.0) Total 229 36 47 312 75 28 15 118 430 (100) (100) (100) (100) (100) (100) (100) (100) (100) Three star: Chi-square=3.837(df=4) and p value =.429*; Four star: Chi-square=9.244(df=4) and p value =..50**; Five star: Chi-square=18.925 (df=4) and p value =.179**. * Significant at 5% level. ** Not significant at 5% level. CONCLUSION While going through the above analysis the following observations have been arrived at: (i) pay package in the industry does not fully match with the work load/working hours,(ii) high labour attrition in the early stages of employment, (iii) no relationship between job satisfaction and working environment (iv) no uniformity of opinion among employees as to whether there is the practice of assessing job satisfaction periodically and significant difference in the opinion of the employees can be found and (v) no satisfaction with their job in the organization. Thus to conclude, job satisfaction of employees in the hotel industry is found not satisfactory. Hence it is suggested that the management and the concerned Ministry in the government should give maximum attention to make necessary correction on all the spheres of job satisfaction in order to refurbish this sector. REFERENCE Champra, T.N (2008). Human Resource Management-Concepts and Issues. New Delhi: Dhanapati rai & Co. Dessler Garg (2008). Human Resource Management. New Delhi: Pentice Hall India Private Limited. Hoppoch, R.(2009). Job Satisfaction. New York: Harper & Brothers.

Jex, S. M. (2002). Organizational psychology: A scientist-practitioner approach. New York, NY: John Wiley & Sons, Inc. Judge, T. A., & Church, A. H. (2000). Job satisfaction: Research and practice. Oxford, UK: Blackwell.

Locke, E. A. (1976). The nature and causes of job satisfaction. Chicago, IL: Rand McNally. Spector, P. E. (1997). Job satisfaction: Application, assessment, cause and consequences. Thousand Oaks, CA: Sage Publications.

QUALITY OF WORK LIFE AMONG WORKERS IN A GARMENT INDUSTRY

S. Pratibha Associate Professor, Department of Management Studies, Ramappa Engineering College, Warangal, Andhra Pradesh. pratibha1507@gmail.com

ABSTRACT Work is an integral part of our everyday life, as it is our livelihood or career or business. Work should yield job satisfaction, give peace of mind, and fulfillment of having done a task, as it is expected, without any flaw and having spent the time fruitfully, constructively and purposefully. Quality of Work life is a very important tool which extends the relationship between individuals and organizational factors. This is an attempt to look into the quality of work life among workers with special reference to Garment Industry in Warangal District. The research design is descriptive in nature. For this study the sampling technique chosen is convenient sampling with a sample size of 50 workers. The analysis of the study points our clearly the major factors that influence and decide the quality of work life are environment, opportunities, nature of job, people, stress level, career prospects, challenges, growth and development and risk involved in the work and rewards.

KEYWORDS: Employee Motivation, Job, Satisfaction, Organization Development, Work environment, work stress. ________________________________________________________________________

INTRODUCTION Quality of Work Life is the extent of relationships between individuals and organizational factors that exist in the working environment. Many factors contribute to Quality of Work Life (QWL), which includes adequate and fair remuneration, safe and healthy working conditions and social integration in the work organization that enables an individual to develop and use all his or her capacities. Employees at grass root level experience a sense of frustration because of low level of wages, poor working conditions unfavorable terms of employment, by their superiors and the like where as managerial personnel feel frustrated because of alienation over their conditions of employment,

inter personnel conflicts , job pressures ,lack of freedom in work Absence of challenging work etc. Definition J Richard and LOY defines QWL as the degree to which members of a work organization are able to satisfy important personal needs through their experience in the organization. The quality of work life is an essential factor that promotes workers wellbeing in the workplace, thus contributing to a quality service delivery and improved productivity. According to the American Society of Training and Development QWL is a process of work organization which enables its members at all levels to participate actively and effectively in shaping

the organizations environment, methods and outcomes. It is a value based process which is aimed towards meeting the twin goals of enhanced effectiveness of the organization and improved quality of life at work for the employees. Rahman (1984) in his study on the industrial workers of India found that subjects having low educational background and lower income had better perception of QWL than those having higher education and higher income. The Quality of Work Life in an organization is essential to the smooth running and the success of its employees. Quality of Work Life helps employees to feel secure in which they work. The success of any organization is highly dependant on how it attracts, recruits, motivates, and retains its workforce. Organization has to adopt a strategy to improve the employees 'quality of work life'(QWL) to satisfy both the organizational objectives and employee needs. QWL is a process by which an organization responds to employee needs for developing mechanisms to allow them to share fully in making the decisions that design their lives at work. The main objective is to focus on creating a good working environment because of which employees work together in a cooperative way and contribute their best in achieving the organizational goals. The term refers to the favorableness or unfavourableness of a total job environment for people. QWL programs are another way in which organizations recognizes their responsibility to develop jobs and working conditions that are excellent for people as well as for economic health of the organization. QWL programs usually emphasize development of employee skills, the reduction of occupational stress and the development of more co-operative labormanagement relations and Vigorous Domestic and International competition drive organizations to be more productive. Managers and human resource departments respond to this challenge by finding new ways to improve productivity. QWL means having good supervision, good working conditions, good pay and benefits and an

interesting, challenging and rewarding job. Enhanced focus on employee policies and friendly work environment have opened new channels of communication between the employer and the employees, it has also boosted one of the most dreaded problems - soaring attrition levels. The desire to become the best is pushing corporate to woo and retain the best talents in the job market. Job discontent and job pressures have their substantial effect on employees health in the form of reduction in general happiness increase in smoking drinking and putting on excess body weight. Frustration due to absence of recognition tedious work, unsound relations with Co-workers, poor working conditions, low self esteem, occupational stress, work heavy load, monotony, Fatigue, time pressure, lack of stability and security etc. in view of the contemporary managerial problems. The present day employees are much concerned about high wages, better benefits, challenging jobs etc. Mirvis and Lawler (1984) suggested that quality of working life was associated with satisfaction with wages, hours and working conditions, describing the basic elements of a good quality of work life as i) safe work environment ii) equitable wages iii) equal employment opportunities iv) opportunities for advancement. Baba and Jamal (1991) listed what they described as typical indicators of quality of working life, including: i) job satisfaction ii) job involvement iii) work role ambiguity iv) work role conflict v) work role overload vi) job stress vii) organizational commitment and viii) Turnover intentions According to Richard E. Walton the following are the Eight Parameters for measuring QWL i) Adequate and Fair Compensation ii) Safe and Healthy Working Conditions iii) Opportunity to Use and develop Human Capacities iv) Opportunity for Career Growth v) Social

Integration in the work Force vi) Constitutionalism in the Work Organization vii) Work and Quality of Life viii) Social Relevance at Work Workers became socially isolated from their coworkers because their highly specialized jobs weakened their community of interest in the whole product. Deskilled workers lost pride in their work and became bored with their jobs. Higher-order (social and growth) needs were left unsatisfied. The result was higher turnover and absenteeism, declines in quality, and alienated workers. Conflict often arose as workers sought to improve their conditions and organizations failed to respond appropriately. Managements response to this situation was a tighten controls, to increase supervision, and to organize more rigidly. Although these actions intended to improve the situation, they only made it worse because they further dehumanized the work. Management made a common error by treating the symptoms rather than identifying and attacking the causes of the problems. The real cause was that in many instances the job itself simply was not satisfying. The odd condition developed for some employees that the more they worked, the less they were satisfied. Hence the desire to work declined. A factor contributing to the problem was that the workers themselves were changing. They became more educated, more affluent (partly because of the effectiveness of classical job design), and more independent. They began reaching for higher-order needs, something more than merely earning their bread. Perhaps classical design can achieve great gains for a poor, uneducated, often illiterate work force that lacks skills, but it is less appropriate for the new work force in educated and industrialized nations. Design of jobs and organizations had failed to keep up with widespread changes in worker aspirations and attitudes. NEED AND IMPORTANCE OF THE STUDY: There is a need and importance for the study, as it will help the company to known about the employees opinion and can modify the changes in the organization for human resource development

and future utility. Quality of work life programmes has become important in the work place because of 1. Increase of women in the work force, 2. Increase of males involvement in dependent care (child and elder ) Activities, 3. Increase or responsibility of elders 4. Increase of demand at work 5. Loss of long term employment guarantees 6. The need for enhanced work place skills 7. Increased competition for the best student and talent for education and research Environment 8. Greater competition for talent SCOPE OF THE STUDY: The present study is a micro level study confined to the study of motivation, job satisfaction and can be attempted from various dimensions of personal feelings, perception, desires, motives, attitudes, values etc; therefore employee management in an organization does mean management of not only technical skills but also other factors of the human resources. OBJECTIVES OF THE STUDY: 1. To study the quality of work life of employees at Kesoram cements. 2. To know the existing working conditions, health and safety measures to improve the quality of work life of the employees. 3. To examine how training and development programmes help to develop the quality of work life. 4. To know how the various welfare activities and other benefits help to bring a better quality of work life. RESEARCH METHODOLOGY: The present study would like to examine the quality of work life of workers in a small-scale industry located in Warangal district. The present study relies on primary and secondary source of data. This data collected through Questionnaire, discussions and observations to elicit the information from the employees. The Secondary data i.e. establishment location etc. were collected

from the reports, journals, Books, information Brochures etc. Sample size: 50 Employees were chosen randomly for the study. LIMITATIONS: The following limitations are considered: 1. The study bring the general opinion of" the employees but it will not reflect the exact opinion of all. 2. As the study is conducted in GARMENT INDUSTRY IN WARANGAL to indicate the Perception of the employees 3. The study restricted to 50 samples. 4. The study focuses on the attitudes and perceptions of employees only; it will not cover the financial aspect of the employees. TECHNIQUES FOR IMPROVING QWL The quality of work life movement is of recent origin and has a long way to go. Individual as well as organized efforts are required to improve the quality of work life for millions of workers in the country. Some of the techniques used to improve the QWL are as given below: FLEXIBLE WORK SCHEDULES: There should be flexibility in the work schedules of the employees. Alternative work schedules for the employees can be flexi time, staggered hours, compressed workweek etc. Flexi time is a system of flexible working hours, staggered hours schedule means that different groups of employees begin and end work a different intervals. Compressed workweek involves longer hours of work per day for fewer days per week.2. JOB REDESIGN: Job redesigning or job enrichment improves the quality of the jobs. It attempts to provide a person with exciting, interesting, stimulating and challenging work. It helps to satisfy the higher-level needs of the employees. OPPORTUNITY FOR DEVELOPMENT: Career development is very important for ambitious and achievement oriented employees. If

the employees provided with opportunities for their advancement and growth, they will be highly motivated and their commitment to the organization will increase. AUTONOMOUS WORK GROUPS: Autonomous work groups are also called selfmanaged work teams. In such groups the employees are given freedom of decision making. They are themselves responsible for planning, organizing and controlling the activities of their groups. The groups are also responsible for their success or failures. EMPLOYEES PARTICIPATION IN MANAGEMENT: People in the organization should be allowed to participate in the management decisions affecting their lives. Quality circles, Management by objectives, suggestion system and other forms of employees participation in management help to improve the QWL. JOB SECURITY: Employees want stability of employment. Adequate job security provided to the employees will improve the QWL to a large extent. EQUITABLE JUSTICE: The principle of equitable administrative justice should be applied in disciplinary actions, grievance procedures, promotions, transfers, work assignments etc. Partiality and biasness at any stage can discourage the workers and affect the QWL. ANALYSIS AND INTEPRETATION OF THE STUDY: 1. From the study it is observed that 66 percent of employees felt that medical reimbursement scheme adopted by the company are excellent, 28 percent of the employees indicated it as good, while 6 percent of the employees felt satisfied. 2. Regarding the safety measures adopted by the company 42 percent of the employees said it is excellent, 40 percent of the employees indicated it as good, while 18 percent of the employees felt satisfied.

3. 36 percent of employees felt that wage policies adopted by the company are excellent, 46percent of the employees indicated it as good, while 18 percent of the employees felt satisfied. 4. 20 percent of employees felt that recognition for their skills and abilities adopted by the company are strongly agree, 56percent of the employees indicated it as agree, while 6 percent of the employees felt disagree,14 percent of employees felt that neither agreed nor disagreed , and 4 percent of employees felt that strongly disagreed. 5. 22 percent of employees felt that work timings of organization adopted by the company are excellent, 50 percent of the employees indicated it as good, while 28 percent of the employees felt satisfied. 6. 30 percent of employees felt that motivation at workplace adopted by the company are excellent, 52 percent of the employees indicated it as good, while 14 percent of the employees felt satisfied, 4 percent employees felt un satisfied . 7. 56 percent of employees felt that relation with their immediate superior adopted by the company are excellent, 30 percent of the employees indicated it as good, while 14 percent of the employees felt satisfied. 8. 50 percent of employees felt that relation with their sub-ordinate is adopted by the company are excellent, 46 percent of the employees indicated it as good, while 4 percent of the employees felt satisfied. 9. 28 percent of employees felt that training facilities adopted by the company are excellent, 58 percent of the employees indicated it as good, while 12 percent of the employees felt satisfied , and 2 percent employees felt that not satisfying 10. 38 percent of employees felt that welfare activities adopted by the company are excellent, 48 percent of the employees indicated it as good, while 14 percent of the employees felt satisfied. 11. 94 percent of employees felt that will take additional responsibilities adopted by the company are agree, 8 percent of the employees felt disagree. 12. 28 percent of employees felt that work environment adopted by the company are excellent, 56percent of the employees indicated it as good. 13. 24 percent of employees felt that job satisfaction adopted by the company are strongly agree, 62 percent of the employees indicated it as

agree, while 8 percent of the employees felt disagree . 14. 12 percent of employees felt that suggestion scheme adopted by the company are excellent, 36percent of the employees indicated it as good. CONCLUSIONS: Most of the characteristics found, analyzed and studied were amenities at work, participation in decision making, planning policies, working conditions, supervision and management, communication, career advancement, job security, compensation, recognition, interpersonal relations, job stress, job enrichment, motivation, age, marital status, promotion, salary, application of modern technologies such as computer and other electronic gadgets for information processing and retrieval etc. In few studies, it was found that the professionals were satisfied with the supervision, nature of work and benefits, but dissatisfied with opportunities for promotion, pay and contingent rewards. Many dimensions of job satisfaction significantly varied with the staff variables of experience, education, position title, union representation etc. As regards the application of computer and other operating machines, a very few enjoyed in using new skills to improve and expand their services. It was also revealed that improved Quality of Work Life naturally helped to improve the family life of the employee and improved the performance and productivity of the organization. The organization provides comprehensive medical care to employees and their families The study indicates that more than half of the employees felt that recognition for good results adopted by the company are agreed and less number of employees felt disagreed. It is found that more than half of the employees felt that motivation at work place adopted by the company are good and least number of employees felt unsatisfied .It is revealed that half of the employees felt that relation with their immediate superior is adopted by the

company are excellent and least number of employees felt satisfied. SUGGESTIONS: From the study, the project trainee suggests that least number of employees is satisfied with wage policies, so organization has to restructure the wage policies and ensure that pay satisfaction. Most of the employees are not satisfied with the manner of implementing the suggestion schemes so the organization has to redesign suggestion schemes to improve organization position. From the study, the project trainee suggests that least number of employees is satisfied with job rotation, so organization has to restructure the job rotation procedure for changing employees mindset. Organization has to improve welfare activities by adding more amenities or changing the existing one. Interview with respondents reveal that they require performance counseling, so a counselor needs to be appointed. Organization should provide for more cultural programmers which facilitate the employees to feel ease after tedious work as act as relaxing technique. Organization should provide yoga and meditation to the employees for relaxation from stress. REFERENCES: Elizur D & Shye S (1990), Quality of work life and its relation to quality of life, Applied Psychology, An International Review. 1. Baba, VV and Jamal, M. (1991), Routinisation of Job Context and Job Content as Related to Employees Quality of Working Life: A Study of Psychiatric Nurses. Journal of Organizational Behaviour. 2. Mirvis, P.H. and Lawler, E.E. (1984) Accounting for the Quality of Work Life. Journal of Occupational Behaviour. 3. Rahman A. (1984), QWL as perceived by the Industrial shift workers, Thesis, Osmania University, Hyderabad 4. Casco and Wayne F. (2002), Managing Human Resource, Tata Mc Graw-Hill, New Delhi

5. Aruna Dubey and Nidhi Kotwal and G.C.W. Parade, Improving Quality of Work Life retrieved from http://www.spmrcommercecollegejmu.com/downl oads/abstract.pdf 6. Raduan Che Rose, LooSee Beh, Jegak Uli, Khairuddin Idris, An Analysis of Quality of Work Life and Career-related Variables Retrieved from http://findarticles.com/p/articles/mi_7109/is_12_3/ ai_n28395663/ 7. Meenakshi Gupta, and Parul Sharma, Factor Credentials Boosting Quality of Work Life of BSNL Employees in Jammu Region, APJRBM Volume 2, Issue 1 (JANUARY 2011) ISSN 2229-4104 8. Prasad, L.M, (2003), Organzational Behaviour, Sultan Chand & Sons. 9. Sinha P. & Sayeed O. B. (1980), Measuring QWL in relation to Job Satisfaction & Performance in two Organization, Managerial Psychology, 2, 10. http://en.wikipedia.org/wiki/Quality_of_w orking_life 12. http://blog.timesjobs.com/2009/04/how-doesthe-%E2%80%9Cquality-of-worklife%E2%80%9D-affect-the-working-climateof-an-organization/ 13. http://www.gazhoo.com/doc/20100514185943674 5/Research+Project+Report+On+QUA LITY+OF+WORK+LIFE 13. http://www.chrmglobal.com/Replies/2416/ 1/Quality-of-Work-life.html 15..http://www.scribd.com/doc/32594438/HrmTerm-Paper-ON-QUALITY-OF-WORKLIFE-MEASURES-IN-RETAIL-SECTOR 14. http://s08.cgpublisher.com/proposals/92/in dex_html 15. http://www.123oye.com/jobarticles/others/quality-work-life.htm

The Role of Primary Agricultural Co-operative Societies In Farm Credit: A Case Study of selected PACS in a Village of Nimgaonjali, Sangamner Taluka
Prof. R.G. Sathe, Associate Professor, PIM, Hadapsar ABSTRACT
Agriculture occupies an important place in the Indian Economy. The development of the nation is largely dependent on the prosperity of the agricultural sector. At the initial of stage, the agriculturists depend more on non-institutional sources for their credit requirements. The availability of adequate farm credit is one of the chief determinants of the agricultural growth in India. Hence adequate and timely credit to the farmers on liberal terms becomes Sine qua non. Cooperatives are considered as the agencies for mobilization and development of rural resources in a planned and cost effective manner besides providing inputs, services and marketing facilities to the rural economy. In Maharashtra, Primary Agricultural Co-operative Societies are playing a significant role in serving the needy farmers by fulfilling their credit requirements. On this backdrop, an attempt is made to analyze its role in the agricultural development of rural areas. The main objective of the study is to evaluate the performance of selected Primary Agricultural Co-operative Society by analyzing its deposits, credit and impact of credit on the beneficiaries. In the Village, Primary Agricultural Co-operatives are functioning in most efficient manner by providing adequate, cheap and timely credit to agricultural sector. Through PACS the farmers benefitted to maximum extent by increasing their agricultural output which in turn increased their levels of income. Hence it can be concluded that PACS has become a powerful tool in the agricultural development of the Nimgaonjali, Village.

Keywords: Co-operatives, credit, Deposit, output 1. INTRODUCTION In Indian context, the need for agriculture credit is determined partly by the characteristics peculiar to Indian farming. This is mainly because of the extreme dependence of agriculture on nature and biological factors and the resulting element of unpredictable risk, the relatively small size of the farm, the destructibility of agricultural production and the consequent inability of the farmer to adjust himself quickly to changes in demand and the fact, that agricultural produce is brought to the market at the same time by a large number of small farmers, greatly weaken the bargaining position of the farmer. The role of agriculture in development of any country needs no emphasis. It has more strategic role in the process of development of developing India. Credit is an important input which ensures adequate working capital as well as infrastructural development. Adequate and timely credit provision significantly increases agricultural output which leads to an increase in the economic development of the cultivators and people attached to cultivation. Moreover, agricultural credit serves as an instrument for stimulating increase in output, income and employment. Primary Agricultural Credit Societies (PACSs) has a significant role to extend credit to farmers. This unit abstracts the vitality and service potential of the co-operative movement in the country. Such societies are "the kernel of the co-operative movement of co-operative institutions. These societies are started not only with the objective of providing cheap credit but also to teach principles of co-operation to the members or farmers 2. RATIONALE OF THE STUDY: Primary Agricultural Credit Societies (PACSs) were entrusted the vital role of providing agricultural credit, distributing seeds, fertilizers, pesticides and marketing of agricultural produce. These societies are important institutions for rendering agricultural services to farmers this necessitates the investigation of the working of the societies in rural area.

3 OBJECTIVES OF THE STUDY: 1. To analyze the role of Primary Agricultural Credit Society in rendering services to farmers in the study area .

2. To evaluate their financial performance of the selected PACS through comparative statements 4. HYPOTHESES OF THE STUDY: The Primary Agricultural Credit Society is providing satisfactory credit and non-credit services to their members.

5. RESEARCH METHEDOLOGY AND DATA COLLECTION: The study is based on primary and secondary data. The primary data has been collected through the information provided by the chairman and secretary of the society. Secondary data has been collected from internal records and audited annual reports of the society. 6. LIMITATION OF THE STUDY: The study is limited to Vivid Karyakari Seva Sahakari Santha Maryadit, Nimgaonjali, TalSangamner and only three years financial statements are considered 7. REVIEW OF LITERATURE: Credit is a crucial input process of development. For historical reasons, Indian farming Community failed to make huge investments in agriculture. In order to mitigate the Problems of the farming community, the Cooperative Credit Societies Act was passed in 1904, which permitted the formation of credit societies. Maclagan committee(1915)advocated that there should be one co-operative for every village and every village should be covered by a co-operative Co-operative Planning Committee (1945) Under the Chairmanship of R.G.Saraiya in 1945, recommended that primary societies be converted into multi-purpose societies and that efforts should be made to bring 30 per cent of the rural population and 50 per cent of villages within the ambit of the reorganized societies within a period of 10 years, 25 percent of the total marketable surplus or agricultural produce should come under co-operatives. Committee also recommended that Reserve Bank of India should provide greater assistance to co-

operatives. All India Rural Credit Survey or Gorwala Committee (1954) - Committee was appointed by the Reserve Bank of India in 1951, to supervise a survey regarding facilities available in rural areas for providing agricultural loans to the agriculturists and to make necessary recommendations. The Committee submitted its report in 1954. After analyzing the various causes for unsatisfactory working of the movement, the committee concluded that Cooperation has failed but it must succeed. The chaudhuri (2001) were suggested that in order to increase the productivity of agriculture, better institutional credit, and delivery mechanisms were to be conceptualized, planned and executed urgently. Sivaloganathan (2004) observed that adequate credit facilities were highly essential for agricultural growth because there was a vast gap in the vital sector of economy. The multiagency approach has to be initiated as it facilitates access to resources and service. more over credit for agriculture serves as an important instrument for stimulating increase in output, income and employment 8. ANALYSIS Primary Agricultural Cooperative Society (PACS) PACS is playing a important role in improving the economic conditions of its members in rural area. It provide short-term, medium-term and long-term loan to the Farmers at lowest interest rates to meet their various needs related to farming. It also provides different agricultural inputs i.e. fertilizer, pesticides and agricultural implements. Capital of Primary Agricultural Credit Society Table 1 shows the Capital and Members of Primary Agricultural Credit Society for the last three years from 2009-2010 to 2011-2012

Year

Table 1. Growth profile of PACS No. of Capital % change Members (Rs.) over previous year 2151580 2426400 3163588 -12.51 30.38

Table 3. Medium-term loan distribution of PACS Year Medium -term Increase/Decrease loans (Rs.) in % 2009-10 2010-11 2011-12 1299874 972449 763689 --25.18 -21.46

2009-10 1868 2010-11 1879 2011-12 1850

Source: Relevant chart of the society The above Table No.3 indicates the Mediumterm loans showing decreasing trend. In the year 2009-10 the Medium -term loans are Rs. 1299874and it is decreased to Rs. 763689 in 2011-2012 Long-term Agricultural Cooperative credit distributions Table 4 shows the long term credit distribution for the last three years from 2009-2010 to 2011-2012

Source: Relevant records and audited annual reports of the society From the above table no.1 it is a significant growth in the share capital of the society during the study period. But there is considerable decline in the number of society members due to death of member in 2011-12 Short-term Agricultural Cooperative credit distributions Table 2 shows the long term credit distribution for the last three years from 2009-2010 to 2011-2012 Table 2. Short-term loan distribution of PACS Year Short-term Increase/Decrease loans (Rs.) in % 2009-10 5198979 2010-11 5069925 2011-12 9038613 --2.48 78.79

Table 4. Long-term loan distribution of PACS Year Long-term Increase/Decrease loans (Rs.) in % 2009-10 2010-11 2011-12 259762 167314 165902 --35.59 -0.84

Source: Relevant chart of the society The above Table No.2 indicates the short-term loans showing increasing trend. In the year 2009-10 the short-term loans are Rs.5198979 and it is increased to Rs.9038613 in 2011-2012 Medium -term Agricultural Cooperative credit distributions Table 3 shows the long term credit distribution for the last three years from 2009-2010 to 2011-2012

Source: Relevant chart of the society The above Table No.4 indicates the Long -term loans showing decreasing trend. In the year 2009-10 the Long -term loans are Rs. 259762and it is decreased to Rs. 165902 in 2011-2012 Total Agricultural Cooperative credit distributions Table 5 shows the total loan distribution for the last three years from 2009-2010 to 2011-2012

Table 5. Total loan distribution of PACS Year Total loans Increase/Decrease (Rs.) in % 2009-10 2010-11 2011-12 6758615 6209688 9968204 --8.12 60.52

Capital and Owners funds Table 7 shows the Capital and Owners funds for the last three years from 2009-2010 to 2011-2012 Table 7.Progress of PACS during 2009-10 To 2011-12 Year Capital (Rs.) 2151580 Reserves (Rs.) 667296 Profit (Rs.) 137200

Source: Relevant chart of the society The above Table No.5 indicates the Total loans showing increasing trend. In the year 2009-10 the Total loans are Rs. 6758615and it is increased to Rs. 9968204 in 2011-2012.where as it was only Rs.6758615 for the year 200910. Borrowings, Distribution of loans and Recovery of loans Table 6 shows the Borrowing. Distribution of loans and Recovery of loans for the last three years from 2009-2010 to 2011-2012 200910 201011 201112

2426400

1172510

242202

3163588

2888850

114891

Source: Audited annual reports of the society Table No.7 indicates that the share capital of PACS is increased nearly half times during the study period i.e.2009-10 to 2011-12 and reserves of PACS is increased nearly four and half times during the study period. It is also observed that there are some fluctuations in profit due to non-performing assets, recovery of loans and operating expenses. 9. FINDINGS The following findings have been made on the basis of the analysis of the services rendered to farmers and financial performance of the selected PACS in Nimgaonjali 1. In the total activities of the selected PACS,the proportion of credit services is very high and the proportion of noncredit services is very insignificant 2. The average recovery performance of PACS is 77% during study period though there are variations in some of the year. 3. In the year 2011-12 borrowed amount is very high in proportion of total loans issued to the farmers. 10. SUGGESTIONS FOR IMPROVEMENT A strong co-operative unit at the base level is very important to establish the organization at the top level. At present, our co-operative credit structure needs rebuilding and reorientation. But this is extremely

Table 6. Agricultural Cooperative Credit Distributions and Recoveries Year Borrowin Distributi Loan Loan g on of recov recover total ered ed (Rs) loans (Rs) In % (Rs.) 200910 201011 201112 5186000 6758615 3800 147 7842 051 7286 099 56.22

8043051

6209688

100

1630801 9

9968204

73.09

Source: Relevant chart of the society Table No.6 shows that the progressive growth of PACS from 2009-10 to 2011-12.In the year 2009-10 Borrowing Rs.518600 and it is increased to Rs.16308019 in 2011-12.Similarly total distribution of loan in the year 200910,Rs.6758615 and it is increased to Rs.9968204 in 2011-12 and loan recovery rate also improved compare to the year 2009-10

difficult and costly. Few of the following suggestions may help in the process of restructuring of PACS at the local level. 1. The society should increase the number of members as possible in a given area so that efficient and economic development could be possible. 2. It is essential to make sure of the proper recovery of loans which will help the society to expand their works. 3. Strict punitive measures should be take against the defaulters which will check the heavy outstanding overdue 4. Other complementary services like agricultural extension, wholesale prices for farm requisites, marketing, storage facilities and consumer cooperatives should also accompany credit facilities. 5. The society should maintain the ratio of borrowing fund and loan amount. 11. CONCLUSION The institutional credit increases the purchasing power of the farmers. It acts moral boost to farmers in increasing the productivity which ultimately improves their overall economic growth. Hence it can be said that agriculture credit and agriculture development goes by hand in hand. The present study clearly enunciated the advantages enjoyed through improved technology with the efforts of the Primary Agricultural Credit Society for the farmers in term of increased production, net returns and subsidiary incomes. Thus it is evident from the above study that Primary Agricultural Credit Society is playing important role in the progress and development of the village REFERENCES1. Daniet Thorner,Agricultural Co-operative In India, A Field Report, Asia Publishing House, Bombay, 1984 2. Bhuimali Anil,Rural Co-operative and Economic Development, sarup and sons, New Delhi-2003. 3. Finance India (Journal) Vol XVII No.2 June 2003

4. Annual Reports of the PACS for the last 3 years from 2009-10 to 2011-2012. 5. Ravi M. Kishore, Financial Management, Taxmans 6. www.sahakarayukta.maharashtra.gov.in

The Study of Gender Effects on Product Placement in Indian Films

Prof. Rishi P. Shukla* Research Scholar- Symbiosis International University, Pune, 411019, India. E-mail-: rishi.pshukla@gmail.com Dr. Manohar Ingle Research Guide Symbiosis International University, Pune, 411019, India. Email id: - surmaning@rediffmail.com Abstract Product placement in films, television and videogames are new medium for marketing communication. The effectiveness of advertisements is in doubt because of todays global environment, changing viewers behaviors and invent of new technology. Now marketers are using new medium to reach its target customers. Various studies have been done in this field to analyze the impact of product placement practice in films on viewers in Hollywood. This study focus to analyze the categorical difference between male and female on various issue involved in product placement practice in Indian films with special reference to Hindi films. The results of a survey of 128 graduates with 72 male and 56 female students are reported in this study. Results indicate that product placement practice is having positive impact on viewers, irrespective of their gender. Awareness level about product placement in films is comparatively high in case of male than female. Major proportion of viewers doesnt consider it as unethical practice. Key words -: Product Placement, Marketing communication, Hollywood. the 30-second television commercial. For filmmakers, the right brand offers not only Introduction another revenue stream, but also a great Brand/product placement is a promotional opportunity to market their film through tactic used by marketers in which a real above- and below-the-line channels. commercial product is used in fictional Obviously, its a win-win script for both media, and the presence of the product is the companies and Brand Bollywood (shukla result of an economic exchange, it is an Soma, & Sinha Walunjkar 2007). The most advertising technique in which the comprehensive definition of product companies pay a fee or provide service in placement has been offered by Karrh (1998, exchange for a prominent display of their p33) who defines it as the paid inclusion of product. Product placement occurs in plays, branded products or brand identifiers, films, television series, music videos, videothrough audio and/or visual means, within games and books. The objective of such mass media programming. Product brand communication is to expose the placement is a marketing technique of audience to a brand, whereby the effect can placing brands or products in movies for the be maximized in terms of increased return of money or promotional exposure of awareness and higher recall, so that the the films in a marketers advertisement customer will buy the brand which has (Clark, 1991 in Balasubramanian et al, maximum recall; and to satisfy the customer 2006). Product placement is an alternative to to optimum level. For brand managers, an the traditional advertising without the association with Bollywood gives them a chance of zapping. This alternative started clutter-breaking opportunity to look beyond

because of the resistance against the traditional advertisement as commercial breaks (Keller, 2001 in Wiles & Danielova, 2009). A benefit of product placement is that the placement makes movies more realistic (DeLorme & Reid, 1999; Gupta & Gould, 1997). product or brand placement continues to be an important practice within advertising and integrated marketing communications in which advertisers push their way into content far more aggressively than ever before. Product placement is the purposeful incorporation of commercial content into noncommercial settings, that is, a product plug generated via the fusion of advertising and entertainment (Ginosar and Levi-Faur, 2010). In product placement, the involved audience gets exposed to the brands and products during the natural process of the movie, television program, or content vehicle. (Panda, 2004; Cebrzynski, 2006). Researchers have studied product placement in various media: advergames, Computer / video games, digital games, movies, television, television magazines (Matthes, Schemer, and Wirth, 2007), novels (Brennan, 2008), online games, simulation games, sporting events, game shows (Gupta and Gould, 2007), radio, physical environments such as hotel rooms, rental cars, or ships (Weaver, 2007), virtual/online environments (Yaveroglu and Donthu, 2008), and songs (Delattre and Colovic, 2009).( Kaylene Williams ,2010). the Indian film industry is the largest in the world. Now, aided by technological advancements, the industry is set to take a further leap across production, exhibition and marketing. In such a scenario, product placement in mainstream films deserves a renewed focus because as a marketing communication tool, it is fast emerging as the medium with maximum potential to capture and covert audiences to potential consumers. This is especially relevant in a world where traditional media vehicles are

increasingly failing to reach the consumers for various reasons. The Indian media and entertainment industry has an estimated size of US$ 7.72 billion and is expected to reach US$ 18.32 billion by 2010 with CAGR of 19%.Recent years have seen a consolidation in the Indian film industry, which produces an average of 800 movies per year. Bollywood has finally discovered branding. In 2006, according to industry estimates, brand cameos earned around Rs 80 crore, and as a result, even small- and mediumbudget movies as well as animated films are hoping to cash in on this new and lucrative revenue stream. Indeed, media analysts and industry watchers expect that figure to climb to Rs 200 crore this year, and reach Rs 800 crore in 2010. (shukla Soma, & Sinha Walunjkar 2007). I have conducted an experiment with Two films namely Dilwale Dulhaniya Le Jayenge and Rab Ne Bana Di Jodi. The movie Dilwale Dulhanyiyan Le Jayenge of the 1990s was a successful story of launching of Stroh bear in Indian market. 3. OBJECTIVES OF THE STUDY To find out the awareness about product placement in a movie among the young viewers. To determine the impact of Product pl a 60 c 50 e 40 m Male 30 e nt 20 fema le o 10 n 0 y Right wrong o u ng viewers on brand recall.

 To analyze the attitude toward product placement among the young viewers. Table No.1.2 : Analysis of product recall in DDLJ 4. METHODOLOGY A Sample size of 128 students is considered as the ample size for the study with graduates with 72 male and 56 female. The data is collected using structured questionnaire. Judgment sampling is adopted for collecting the sample elements. The data analysis is interpreted with the help of statistical tools and hypothesis testing with chi-square. 5. DISCUSSION AND ANALYSIS Table No.1.1 : Gender wise analysis for frequency of watching movies in theater in a month.
80 70 60 50 40 30 20 10 0 0 2 4 6

Ho : there is no difference between product recall of male and female. H1 : there is difference between product recall of male and female. The above table no. 1.2 highlights the Analysis of product recall in DDLJ among youngster. 78percentage male and 79percentage female have correctly recall the product placed in the movie DDLJ. Ho: Both male and female are able to recall the product placed in movie DDLJ. The calculated value of (.10) is less than the critical value (3.84) at 5percentage level of significance with 1 degree of freedom. Hence null hypothesis is accepted and it is concluded that male and female both are equally able to recall the product placed in the movie.

frequency male female

Table No.1.3 : Analysis of product recall in Rab Ne Bana Di Jodi .

140 120 100 80 60 40 20 0 Right wrong total

total Male female

Ho : there is no difference between product recall of male and female. H1 : there is difference between product recall of male and female. The above table no. 1.3 highlights the Analysis of product recall in Rab Ne Bana Di Jodi among youngster. 67percentage male and 60percentage female have correctly recall the product placed in the movie . Ho: Both male and female are able to recall the product placed in movie Rab Ne Bana Di Jodi. The calculated value of (.553) is less than the critical value (3.84) at
140 120 100 80 60 40 20 0 0 1 2 3 4

5percentage level of significance with 1 degree of freedom. Hence null hypothesis is accepted and it is concluded that male and female both are equally able to recall the product placed in the movie. Table No.1.4: Attitude of gender towards product placement in movies.

Male female total

Ho : There is no difference between attitude toward product placement of male and female. H1 : There is difference between attitude toward product placement of male and female.

The above table no. 1.4 highlights the Analysis of Attitude of gender towards product placement in movies. 16percentage males are strongly agree while female ratio is 21 percentage. 22 percentage male dont mind if product placed in movies while female ratio is 18percentage. Ho: there is no difference

between gender and Attitude towards product placement in movies. The calculated value of (1.282) is less than the critical value (7.82) at 5percentage level of significance with 3 degree of freedom. Hence null hypothesis is accepted and it is
140 120 100 80 60 40 20 0 0 2 4 6

concluded that attitude of male and female toward product placement in movies is almost same. Table No.1.5: To influence the audience by including brand-name product in the movies is unethical?

Male Female Total

Ho : There is no difference between views of male and female. H1 : There is difference between views of male and female. The above table no. 1.5 highlights the Analysis of influencing the audience by including brand-name product in their movies .On an average 50 percentage male find it unethical while only 39percentage female are agree with it . Ho: female are more positive toward product placement in movie than male . The calculated value of (1.764) is less than the critical value (7.82) at 5percentage level of significance with 3 degree of freedom. Hence null hypothesis is accepted and it is concluded that more female find it ethical to influence the audience by including brand-name product in their movies than male. 1. FINDING OF THE STUDY The major findings of the study are as follows; DDLJ. So male and female both are equally able to recall the product placed in the movie. 67percentage male

and 60percentage female have correctly recall the product placed in the movie. It indicate that male and female both are equally able to recall the product placed in the movie Rab Ne Bana Di Jodi. On an average 50percentage male find it unethical while only 39percentage female are agree with it that influencing the audience by including brand-name product in their movies is unethical. 16percentage males are strongly agree while female ratio is 21percentage . 22percentage male dont mind if product placed in movies while female ratio is 18percentage. Attitude of male and female toward product placement in movies is almost same. On an average 83percentage male find that seeing the brand-name products in a movie makes the experience more realistic while only 53percentage female find it realistic. 2. CONCLUSION The study has focused on the awareness of product placement in movies among youngster in pune. There is a very good awareness among young viewer in pune .

The results show that viewers were generally positive about product placement in movies. . we find that product placements in films are effective. The high recall, recognition and positive attitude scores suggest that brand managers seriously look at product placements in movies as a new vehicle for reaching to customers. The large range of responses suggests that the type of product placement is significant, irrespective of the brand being well known or lesser known . With the growth of professionalism in Indian cinema and the growing need for less cluttered communication channels, we feel that product placements can emerge as a strong vehicle to communicate to the vast film-viewing population in India. 3. RECOMMENDATION The increasing use of product placements APPENDIX I Feature Film Product Dilwale Dulhania Le Jayenge Strohs beer; (1995) Dilwale Dulhania Le Jayenge (1995) Rab Ne Bana Di Jodi (2009) Strohs beer;

in other media like television, books, regional language films and computer games might also be studied, as can longterm memory of product placements. However, a number of issues need to be kept in mind. Relevance of product to the situation needs to be created: this is possible by incorporating the placement planning at a script level. The high failure rate of movies in India mean that managers are ill equipped to predetermine if audiences will convert negative attitudes about the movie into negative attitude towards the brand. As success of product placements is dependent on the success of the movie and consequently, its reach, it is not possible to evaluate placements from a sales-generation perspective.

Situation SRK is desperately seeking the product; comic situation SRK uses product and mentions it in positive light SRK uses product in the various situation in the movie. Nation's Restaurant News, New York, December 4, 40(49), 1-5. 3. Delattre, E. & Colovic, A. (2009). Memory and Perception of Brand Mentions and Placement of Brands in Songs. International Journal of Advertising, 28(5), 807-842. 4. DeLorme, D.E., Reid, L.N. and Zimmer, M.R. (1999), Moviegoers experiences and interpretations of brand in films revisited, Journal of advertising, 28 (Summer) 71-95.

HUNDAI I10

References: 1. Balasubramanian, S.K., Karrh, J.A. and Patwardhan, H. (2006), Audience response to product placement: An integrative framework and future research agenda, Journal of advertising,35 (3), 115-141. 2. Cebrzynski, G. (2006). Lights! Camera! Product Placement!

5. Ginosar, A. & Levi-Faur, D. (2010). Regulating Product Placement in the European Union and Canada: Explaining Regime Change and Diversity. Journal of Comparative Policy Analysis, 12(5), 467. 6. Gupta, P. & Gould, S. J. (1997). Consumers Perceptions of the Ethics and Acceptability of Product Placement in Movies: Product Category and Individual Differences. Journal of Current Issues and Research in Advertising, 14 (Spring), 37-50. 7. Gupta, P.B. & Gould, S.J. (2007). Recall of Products Placed as Prizes Versus Commercials in Game Shows. Journal of Current Issues and Research in Advertising, 29(1), 4353. 8. Karrh J.A. (1998) Brand Placement: A Review; Journal of Current Issues and Research in Advertising, vol 20, no. 2, pp 31-48. 9. Kaylene Williams (2010) Product placement effectiveness: revisited and renewed, Journal of Management and Marketing Research, Vol. ,pp . 10. Panda, T.K. (2004). Consumer Response to Brand Placements in Films Role of Brand Congruity and Modality of Presentation in Bringing Attitudinal Change Among Consumers with Special Reference to Brand Placements in Hindi Films. South Asian Journal of Management, New Delhi, 11(4), OctoberDecember, 7-26. 11. Shukla Soma & Sinha Walunjkar (2007); Cashing in on Brand Bollywood, retrieved fromwww.financialexpress.com/news/cas hing-in-on-brand-bollywood/.../... 12. Weaver, A. (2007). Product Placement and Tourism-Oriented

Environments: An Exploratory Introduction. International Journal of Tourism Research, 9, 275-284. 13. Wiles, A.W. and Danielova, A.D. (2009), The worth of product placement in successful films: An event study analysis, Journal of marketing, 73 (July), 44-63. 14. Yaveroglu, I. & Donthu, N. (2008). Advertising Repetition and Placement Issues in On-line Environments. Journal of Advertising, 47(2), 11-43.

A Study on Developing World-class Management Education for India Rethinking Management Education for the 21st Century-Shape Up Or Ship Out
Ms.Sonali Saha, Asst. Professor Email:sonali.iicmr@gmail.com Phone number: 9561004875 Ms.Priyanka Dhoot, Asst. Professor Email:dhoot.iicmr@gmail.com Phone number: 9561092674

Abstract The true test of education is not what one gets from it; but what one becomes through it
Internationalization, growing technology and their development influence education in society, thus increasing the need for managing education and learning. The purpose of this paper is to apply Malcolm Baldrige Model framework which can provide, streamline educational processes for systematic quality improvement and excellence in developing World- Class Management Education. This paper is an attempt to understand Multiple Intelligence and its application in Educational area by emphasizing on redefining the Role of each stakeholder, purpose of education, and process (Curriculum, Resources, Strategy)

KeywordsWorld- class Management Education, Multiple Intelligence, Malcolm Baldrige Model I Background of the study Technological advances, heightened student expectations, shifting studentdemographics, stakeholder demands for accountability, and new vehiclesfor educational delivery are all current challenges driving the need for innovation in Management Education. It is extremely difficult to meetthese challenges given the environment of limited financial resources, andis clear that institutions must reexamine traditional methods of operationand innovate in order to remain viable now and in the future. Since the late 20th Century, the government of India has aggressively sought international assistance to overcome the critical shortage of management resources. India identified a lack of world class management education program as one of the major obstacles in its endeavor towards modernization. Efforts over more than one decade have still not resulted in achieving it. Driving innovation and implementing sustained improvements areoften extremely difficult for Management Institutes. To some degree, eachinstitution in its own way may consider itself to be somewhat innovative.Every Management Institute and university can produce an array of press releases describingnew programs and activities that are different from the academic normand break new ground (at least for that institution) and that talented peoplehave designed for good purposes. This paper is an attempt to understand the application of the Malcolm BaldrigeModelwhich is a tool to provide a systematic process to drive and manage change. Statement of the Problem There are some good and bad practices the world over in management education. Indias management education needs to rethink on it because of its diversity, profound cultural base, collective thinking changing role andinvolvement of

stakeholders, purpose of education and process (Curriculum, resources, Strategy). At present, most of the management institutesare mainly emphasizingon the development of logical intelligence and linguistic intelligence (mainly reading and writing). But according to Gardner's theory it is being observed that students will be better served by a broader vision of education, wherein teachers use different methodologies, exercises and activities to reach all students, not just those who excel at linguistic and logical intelligence. Literature Review: The Theory of Multiple Intelligences, which was publishedby Howard Gardner in 1983, suggested that all individuals had seven independentintelligences, These "intelligences" were: linguistic and logical-mathematical,musical, spatial, bodily kinesthetic, interpersonal, intrapersonal intelligence. Gardner used 7 different criteria to understand if capacity could be thought asintelligence.

1. Linguistic Intelligence Linguistic intelligence involves sensitivity to spoken andwritten language, the ability to learn languages, and the capacity touse language to accomplish certain goals. This intelligence includesthe ability to effectively use language to express oneself rhetoricallyor poetically; and language as a means to remember information. Writers, poets, lawyers and speakers are among those that HowardGardner sees as having high linguistic intelligence.

2. Logical-Mathematical Intelligence Logical-mathematical intelligence consists of the capacity toanalyze problems logically, carry out mathematical operations, andinvestigate issues scientifically. In Howard Gardner's words, inentails the ability to detect patterns, reason deductively and thinklogically. This intelligence is most often associated with scientificand mathematical thinking. This group of students enjoy working with data bases and spread shedson computer. 3. Spatial Intelligence Spatial intelligence involves the potential to recognize and use the patterns ofwide space and more confined areas (Gardner, 1999).Art activities, reading maps, charts and diagrams, thinking in images andpictures are the favorites of the students who have spatial intelligence (Teele, 2000).According to Armstrong (1994) these students have highly developed senses forcolor, line, shape, form, space. They also have the ability to visualize ideas. 4. Musical Intelligence Musical intelligence involves skill in the performance, composition, andappreciation of musical patterns. It encompasses the capacity to recognize andcompose musical pitches, tones, and rhythms. According to Howard Gardnermusical intelligence runs in an almost structural parallel to linguistic intelligence(Gardner, 1999). Bodily-Kinesthetic Intelligence Bodily-kinesthetic intelligence entails the potential of usingone's whole body or parts of the body to solve problems. It is theability to use mental abilities to coordinate bodily movements.Howard Gardner sees mental and physical activity as related(Gardner, 1999).They can move and act, they are also able toachieve success in a class where physical activities and hands are provided. 5. Intrapersonal &Interpersonal Intelligence

Intrapersonal intelligence entails the capacity to understandoneself, to appreciate one's feelings, fears and motivations. These students enjoy being alone; they can feel and appreciate their ownpowers, weaknesses and inner feelings. They like keeping a journal, they study inquiet atmospheres and they are usually self-reflective. Malcolm Baldridge Model One such TQM management and planning tool that has gained widespread recognition in the business world is the Malcolm Baldridge Model which was developed by the U.S. Department of Commerce in 1988 to honor Malcolm Baldridge, who was Secretary of Commerce from 1981-87. Three yearly awards in three possible categories(manufacturing, service, small business) are given to U.S. companies for accomplishmentsrelated to quality and business performance..

Figure 1. Malcolm Baldrige education criteria for performance excellence framework: A system perspective

I.

II.

III.

Leadership: To examine how our organizations senior leaders personal actions guide and sustain organization. Strategic Planning: To examine how organizations develop strategic objectives and action plans. Customer Focus: To examine how organization engages its students and stakeholders for long-term market success. This engagement strategy includes how an organization listens to the voice of

its customers (students and stakeholders), builds customer relationships, and uses customer information to improve and identify opportunities for innovation. IV. Measurement, Analysis, and Knowledge Management: To examine how an organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets and how it manages its information technology. V. Workforce Focus: To examine organizations ability to assess workforce capability and capacity needs and build a workforce environment conducive to high performance. VI. Operational Focus: To examine how an organization designs, manages, and improves its work systems and work processes to deliver student and stakeholder value and achieve organizational success and sustainability. VII. Results: To examine an organizations performance and improvement in all key areas student learning and process outcomes, customer-focused outcomes, workforce-focused outcomes, leadership and governance outcomes, and budgetary, financial and market outcomes. Hoisington and Vaneswaran, (2005) discussed that managing for innovation is one of the core values of the Malcolm Baldrige criteria. The criteria provide a comprehensive structure for educational institutions to align their mission, vision, values, goals, and strategic challenges with the resources essential for long-term improvement.

Research Objectives: 1. To explore the significance of Baldridge Model in management Education 2. To study and apply Gardner's multiple intelligences in developing world class management education. Research Questions: 1. What differences will exist in the perceptions of administrators, faculty, and staff/support Staff after applying the Baldridge Model in management Education? 2. What are the existing skills of the management students and how it can developed towards achieving multiple intelligence Research Framework The framework for this study is based on the theory of change management, or thecontinuous process of aligning management education with its corporate requirements to become more responsiveand effective than its competitors. The concept of change management is grounded in theprinciple of sustained measurement of and feedback from the people, processes, and systems within an organization, in which people behave as they are measured (Berger, Sikora, &Berger, Sikora, & Berger,1994). These basic concepts associated with the theory of change management form the basis ofthe Malcolm Baldridge Model and Gardeners Multiple Intelligence theory for this study. Research Methodology Quantitative research methodology is used for this study. Stratified convenient sampling methodwas selected for the purpose of this study.To understand the multiple intelligence 200 students from five management institutes affiliated to University of Pune, India are surveyed To study the perception of different stakeholders282 respondents were

selected. Thus, sample sizes for each of thethree strata were 23 administrators, and 97 faculty, 162 staff/support staff, (totaling aproportional sample size of 282). The data is collected with the help of questionnaire by using likert Scale. Data Analysis is done by using Mean Score, F Test. Reliability and Validity The data used to calculate theCronbachs Alpha was drawn from the 201 returned instruments. Cronbachs Alpha value forthe instrument was calculated to be .96. It should be noted that although this researcher hadintended to calculate the Cronbachs Alpha with the use of pilot study data, there was aninsufficient number of pilot study participants to generate reliable data. Cronbachalpha values for the seven categories of MalcomBaldrigeModel ranged from 0.77 to 0.90.The alpha reliability coefficient for the dimensions ranged from 0.88on the information and analysis variables to 0.96 on the leadership variable. Results indicatedthat the seven categories are distinct constructs and are being measured reliably. Significance of the Study As has been suggested, institutions of management education have established a trend ofapplying business and industrial management models to their own institutions. In particular, Theories and models associated with Multiple Intelligence and the Malcolm Baldridgehave become increasingly important to Management Students, administrators, as havethe concepts associated with continuous quality management. As management education leadersexplore quality-related programming changes, they will need to learn the viewpoints of the Students administrators, faculty, and staff/support staff if those initiatives are to be successfullyimplemented. Findings from this study could provide valuable insight to qualityconsultants, as well as to other

management education administrators in providing world class management education in their own institutions. Data Analysis: The Malcolm Baldrige criteria for education, first published in 1999, provide a comprehensive structure for educational institutions to align their mission, vision, value, and goals with the resources essential for a long term improvement effort. The Malcolm Baldrige criteria show a framework of values that could be addressed in management institutions for improving and management of training quality. It is explained below: Leadership:Creating a sustainable organization must be taken into account for senior leaders task. Leaders set twoway communication throughout the organization and create value for students and other stakeholders in their organizational performance expectations. Strategic planning. Nowadays, management education is facing rapid changes of environment so strategic planning is important in development of management education. In order to keep pace with marketing changes and needs, India management education must emphasize on two phases: strategy development and strategy implementation in strategic planning. In Strategy development process, it needs to determine key process steps, key participants, key weaknesses, core competencies, strategic challenges, and strategic advantages as well as fixed time for the process. Strategic planning must be based on actual capacity of the organization to meet the goals of the strategic planning. Strategic planners pay more attention on factors that are students, stakeholders and markets when

establishing and implementation strategic planning. Competitiveness factor also needs to be taken into account When performing the action plan needed to calculate the resource factors such as financial support, implementation staff and performance measures.

Customer and Market Focus: Management Institutes should care about feedback that relate to the satisfaction levels of students and stakeholders. Based on feedback, management institutes identify requirements for educational programs and services. From that point institute can improve educational programs and services to meet the requirements and exceed the expectations of students and stakeholders. This activity will help to enhance their satisfaction and engagement. Measurement, analysis, and knowledge management. Institute must review organizational performance capabilities to assess organizational success, competitive performance, and progress relative to strategic objectives and action plans as well as organization's ability to respond rapidly to changing organizational needs and challenges in operating environments. Workforce focus. Institute should examine how they engage, manage, and develop workforce to utilize their full potential in alignment with organizations overall mission, strategy, and action plans. Workforce needs to be trained skills for adapting to change. Attention to develop skills of building and sustaining relationships between management institutes and students, stakeholders for staff is one of the priority tasks in achieving world class management education.

Operations focus. World class Management Education is dependent on how educational programmes and services are designed to meet customer needs and to identify critical customer needs and competitor characteristics are suggestions for India Management Education. Results Customer focused outcomes describes student and stakeholder focused performance results in terms of satisfaction, dissatisfaction, and engagement. Workforce focused outcomes concern workforce focused performance results in terms of workforce capability and capacity, workforce climate, workforce engagement, workforce development. Leadership outcomes examine senior leadership results. Leadership is measured in aspect senior leaders communication and engagement with the workforce to deploy vision and values, encourage two-way communication, and create a focus on action. Fulfillment of societal responsibilities is also taken into account. Pointing out current levels and trends in key measures of budgetary and financial performance as well as current levels and trends in key measures of market performance are the last component of results. Table1 Intelligence type of Management Students Sr. Intelligence No type 1 Linguistic Logical2 Mathematical 3 Musical Bodily4 Kinesthetic 5 Spatial-Visual Mean Score 11 16 15 18 12 In Percentages 55 80 75 90 60

6 7

Interpersonal Intrapersonal

19 12

95 60

From the survey of 200 management students, it is being observed that majority of students i.e. 95% are found to have Interpersonal skills followed by 90% students having Bodily- Kinesthetic skills. And Least no of students i.e.55% are found to have Linguistic Skills. Table 2 Group Means for Each of the Seven MalcomBaldrige Categories Group Mean Sr. Category No. 1 1 Leadership 2 3 1 2 Strategic Planning 2 and Deployment 3 1 3 Student, Stakeholder 2 & Market Focus 3 1 4 Information Analysis and 2 3 1 5 Faculty-Staff Focus 2 3 6 Process 1 4.06 3.67 3.58 4.32 3.76 3.78 3.68 3.43 3.39 3.93 3.53 3.46 3.22 2.96 3.08 3.62

Management

2 3 1

3.56 3.37 3.84 3.32 3.42

Table 4 Group Perceptions for category TwoStrategic Planning& Deployment Source SS df MS F

Organizational Performance

2 3

Between Groups Within Groups Total *p < .05

6.57

3.29

4.20*

An ANOVA was conducted for each of the seven quality categories to determine whetherdifferences existed among the three groups in this study (administrative, faculty andstaff/support staff). For categories that showed significance, Table 3 Group Perceptions for category OneLeadership Source SS df MS F

154.84

198

0.78

161.41

200

Above table indicates that for Category Two (Strategic Planning& Deployment) indicated a significant difference between groups. Table 5 Group Perceptions for category ThreeStudent Stakeholder & Market Focus Source SS df MS F

Between Groups Within Groups Total *p < .05

4.80

2.39

3.34 *

142.31

198

.72 Between Groups Within Groups Total *p < .05 Above table indicates that for Category Three (Student Stakeholder & Market Focus) indicated that there is no significant difference between groups. 1.77 2 0.88 1.43 *

147.11

200

122.59

198

0.62

Above table indicates that for Category One (Leadership) indicated a significant difference between groups.

124.36

200

Table 6 Group Perceptions for category FourInformation & Analysis Source SS df MS F

Source

SS

df

MS

Between Groups Between Groups Within Groups Total *p < .05 Above table indicates that for Category Four (Information & Analysis) indicated that there I significant difference between groups. Table 7 Group Perceptions for category FiveFaculty & Staff Focus Source SS Df MS F 4.495 2 2.248 3.40 4* Within Groups Total *p < .05

12.25

1.12

2.05*

108.51

198

0.55

130.729

198

0.660

120.76

200

135.224

200

Above table indicates that for Category Six (Process Management)indicated that there is no significant difference between groups. Table 9 Group Perceptions for category SevenOrganizational Performance Source SS Df MS F

Between Groups Between Groups Within Groups Total *p < .05 Above table indicates that for Category Five (Faculty & Staff Focus) indicated that there is no significant difference between groups. Table 8 Group Perceptions for category SixProcess Management 1.33 2 0.67 0.70* Within Groups Total *p < .05

4.96

2.48

4.11*

119.59

198

0.60

186.95

198

0.99

124.55

200

188.28

200

Above table indicates that for Category Seven (Organizational Performance)indicated that there is significant difference betweengroups. Results And Conclusion: From the data analysis, It is found that there is significant difference in the Category One (leadership), Category Two (strategic planning & deployment), Category Four (information and analysis)

and Category Seven (organizational performance results). And there is no significant difference found in Category Three (student, stakeholder and market focus), Category Five (faculty and staff focus) and Category Six (process management) Based on the study findings of this study several conclusions can be derived. ForCategory One (leadership), Significant difference were found. These results correspond with Demings (1989) belief that to be an effective leader, one needs to successfully manage anyambiguity that arises out of change in order help an organization thrive. This result also concurswith Morgans (1988) view that managers and leaders must be proactive about an organizationsfuture and anticipate forthcoming changes. For Category Two (strategic planning and deployment), Significant difference were found. Oneprobable explanation offered for this difference in perception may be found that alignment of human resource plans for hiring and training through the approvalprocess, a systematic process to integrate these plans across the university are not in place. The results for Category Four (information and analysis) significant difference were found. A possible reason for this difference is also mentioned in the Malcolm Baldridge FeedbackReport, which stated: Below the Chancellors Advisory Committee, there is no systematicmethod for selecting and aligning measures/indicators for tracking daily operations. In severaldepartments, there are goals but not performance measures, or the department review measuresthat do not relate to department goals(Malcolm BaldridgeFeedback Report, 2001, p. 24). Results for Category Seven (organizational performance) significant differences were found. One possible explanation for this difference can be found in the Malcolm

Baldridgefeedbackreport that indicated:Overall employee satisfaction/morale trends are flat for moral at a high level for facultyand staff as demonstrated by scores of 3.16 in 1994 on a five-point scale and 3.48 in both1999 and 2001 results. Additionaly, faculty and staff show an unfavorable trend for myopinions are valued for three years reported from scores of 3.38 in 1994 and 3.61 in1999 and 3.29 in 2001. p. 42). Recommendations: Most management education specialists would be reluctant to admit that they are content withthe status quo, as it is far more acceptable to be striving for excellence. As educators constantly seek ways to improve their institutions, new and better approaches to problem solving areneeded. For Conserving resources, improving institutional effectiveness, implementing qualitymeasures, and dealing with changing role of stakeholders (faculty, students,administrators, staff and parents) following Nine principles associated with effective quality to enhance involvement of stakeholdersin developing world class Management Education: 1. Are driven by vision, mission and outcome driven: Without a clearly definedmission an organization lacks a clear sense of direction and focus.Their vision, mission and outcomesare defined by the expectations of all the stakeholders. 2. Are system dependent: Institutional performance is defined as how well proceduresand members interact as part of an interdependent system or process 3.Have leaders who create a quality culture: Leadersare responsible for helping members understand that new ways of thinking andbehaving may be necessary to achieve the declared vision, mission and outcomes. 4. Exhibit systematic individual development: Because an organization is constantlychanging, it is necessary to

continually update all its members knowledge and skillsto meet the demands of existing changes and to systematically prepare for futurechanges. 5.Make decisions based on fact: The basic cause of a problem cannot be clearlyunderstood unless all relevant data are systematically gathered. 6.Delegate decision-making: If individuals are to be held responsible for achieving astated mission, they must be made aware of how their position and actions relate tothe mission, as well as be given the flexibility to make necessary changes to their jobtasks. The more individuals sense they can influence a process the more they takeownership. 7.Collaborate: Collaboration and teamwork produce results when individuals who havea stake in the outcome are involved in the decisionmaking process. 8. Plan for change: Institutions need to embrace changeas a cultural value; they need to perceive change as a potentially positive force andanticipate it. Planning for change is a fundamental component of continuousimprovement. 9. Have leaders who support a quality culture: Senior management need to support theimplementation of the quality principles by ensuring that the necessary systems andresources are available, which will create and nourish a culture of change. References: Glover, M. K. (1989). Malcolm Baldrige National Quality Award: The quest for excellence.Business America, 110(23) 2-3. Baldrige National Quality Program. 2007a. The 2007 Criteria for Performance Excellence in Business. Washington,D.C.: National Institute of Standards and Technology. <www.quality.nist.gov/Business_Criteria. htm>.

Baldrige National Quality Program. 2007b. The 2007 Criteria for Performance Excellence in Education. Washington,D.C.: National Institute of Standards and Technology. www.quality.nist.gov/Education_Criteria. htm . Baldrige National Quality Program. 2007. Program Web site on the National Institute of Standards andTechnology Web pages. <www.quality.nist.gov>. Deming, W. E. (1992). Does the Baldrige Award really work? HarvardBusiness Review, 70(1) 134.

PROMOTING ENTREPRENEURSHIP IN INDIA

*Kiran.G Assistant Professor, Acharya Bangalore B-School, Bangalore-91 Dr.Ramappa.K.B. Associate Professor, Acharya Bangalore B-School,Bangalore-91 INTRODUCTION: Before 1991, Indian business success was a function of ambition, licenses, government contacts, and an understanding of the bureaucratic system. In 1991, the Indian government liberalized the economy and therefore changing the competitive landscape. Family businesses, which dominated Indian markets, now faced competition from multinationals that had superior technology, financial strength and deeper managerial resources. Entrepreneurship has been on the rise as a global phenomenon much before India began becoming sensitive to the development of entrepreneurship. However the awareness towards the path of entrepreneurship is now picking up a quick pace in our own country, and as a matter of fact is seen as one of the countries that are par excellence with the rest of the Asian countries as far as growing entrepreneurship is concerned. The reason for these are quite simple, its no surprise that the uncertainty of employment, move towards growth in confidence of the youth of India towards non conformity to taking up job and newer policies being introduced by the government towards encouragement of micro or small business development. During the global financial crisis, in the past 10 years India as the rest of the world has also been feeling the heat where downsizing has been the fate of many. Probably the start-up decision or the business idea that was collecting dust all along in the minds, suddenly came to fore and it proved to be the right opportunity and time to realise that startup business or nurturing that business idea. Not withstanding the slow but significant change in the thought process of young adults today, institutes and colleges are now encouraging students by way of introducing entrepreneurial courses/subjects into their curriculum. Looking at the future, the average Indian is expected to be 29 years old in 2020 as compared to 48 in USA, and 37 in China. Therefore, it is no surprise that we see awareness and many a student movement creating forums for entrepreneurship today. On the other hand the state governments have not stayed behind in playing their bit and we also hear of a National Entrepreneurship Policy in the making, which currently seek inputs and ideas towards finalising it to conclusion. A 32 page draft prepared by Ahmedabad based Entrepreneurship Development Institute of India, does not focus on measures relating to financial incentives, instead it aims to focus on raising awareness, promotion, skill development , networking and mentoring. The Kerala government have also introduced recently an entrepreneurship scheme for students at universities and colleges that provides for accessibility to incubation centres and academic incentives to those who approach such centres. At an individual level, while India would rank right on the increasing number of entrepreneurs, but at an institutional level , it has a long way to go , as laws in India towards encouraging entrepreneurship are not very clear or the

ones available dont seem to support or back the entrepreneurial eco-system such as those relating to investments made by angel investors or loans for entrepreneurs free of collateral /suitable rate of interest or low awareness and low reach (although there is a dedicated fund in existence for micro and small enterprises, called the Credit Guarantee Fund Scheme). However, one of the most successive and thriving factors that is helping ensure individuals realise their entrepreneurial dream, is family/friends backed funding. This has been traditionally present particularly in Tier 1 and Tier 2 cities and a prevailing trend. While US and Europe traditionally has a stronger share of funding source from venture capital firms and /or angel investors. In the United States, three keys to entrepreneurial success are easy accessibility to technology, availability of capital and the ability to fail. In India, failure is a stigma and knowing when to let go of their business idea / decaying growth is has never dawned easy in the mind of the Indian entrepreneur. Although, this attitude is changing in newer industries and with the newer generation of start-ups. Apart from the low accessibility of funds, as mentioned earlier, access to technology is also an existing hurdle, however with the success and penetration of the internet and social media marketing, this gap is believed to be getting smaller. Finally, venture capital (VC) in India, until about three years ago, was not as strong as a funding source and financing was entirely debt-oriented. But that is now changing as Both Chinas and Indias strong VC industries are expected to continue their rapid growth and development as they capitalize on strong GDP growth, growing domestic consumption and a dynamic entrepreneurial ecosystem. REVIEW OF LITERATURE

Since the emergence of the topic entrepreneurship there has been an increasing interest of research in this field. Most central and state universities, institutions and colleges have conducted many EDPs for developing and accelerating entrepreneurial activities in India. An effort has been made to collect some of the related studies conducted across the country and are presented below. Mali, D. D. (2006), in his key note address, in the National Seminar on Entrepreneurship Development, at Manipur University, Imphal, has strategically expressed his views that the government has several roles to play for the growth of entrepreneurship. These are to develop infrastructural facilities, provide policy support, adopt promotional measures and also help in creation of entrepreneurship friendly environment. Khanka, S. S. (2006), in his paper on Entrepreneurship Development in NER of India, Experiences and Prospects, has mentioned the problems of Entrepreneurship Development in NER of India which includes inadequacy of infrastructural facilities, unstable and uncertain low and order situation, lack of required human resources and complex procedure in establishing enterprise. Sikidar, S. K.(2011), in his paper, Entrepreneurship in North Eastern Region: A Tool for Innovation and Creativity, has mentioned that Entrepreneurship is a skill inherent in human being, in more or less same degree, to be ignited by education, training for the purpose of transferring it into an economic activity. He considered entrepreneurship as an urge coming from within, devoted in initiating, promoting, nurturing and maintaining economic activities for the production and distribution of goods and services and of wealth.

In another paper Problems and Prospects of Entrepreneurship in North East India by Dev, Sukamal (2011), it is mentioned that, there has been a persistence complaint from Small Scale Industrial (SSI) Units of being subjected to a large number of acts and laws and having to maintain registers, submit returns and face an army of inspectors to ensure compliance to those acts and laws. He further added that there is indeed a need to simplify and streamline the procedural aspects to facilitate setting up of small and tiny sector units. Singh, Muktasana, K. (et all.) (2011), in their paper Impact of Transportation Problems in Small and Medium Enterprises in Manipur, has mentioned the major transportation problems which affects the socio economic and entrepreneurial activities in the state of Manipur including frequent landslides during rainy season, bad road condition, frequent bandh and economic blockades, imposition/collection of illegal tax etc. Siemens, Lynne (2012) in the article Embedding Small Business and Entrepreneurship Training within the Rural Context, has expressed that small rural business owners face challenges that are not generally present in urban areas. Therefore, these business owners need training programmes that are specific to rural context. OBJECTIVES To Study the Motivational factors influencing the entrepreneurs to take start-ups. To study the new sources of funds for Entrepreneurs. To study the different schemes of Government to promote Entrepreneurship in the country. METHODOLOGY

The study is exploratory research in nature. It is based on relevant and required secondary data collected from journals, books, and annual reports of different organizations Indian Institute of Entrepreneurship (IIE), MSME, and Govt. of India Website etc. The collected data is evaluated to draw a meaningful decision.

LIMITATIONS OF THE STUDY On the part of limitation of the study, the paper is based on secondary data. Therefore, authenticity of the findings is limited to the accuracy of the data available in the annual reports during the period of study. FINDINGS OF THE STUDY WHAT MOTIVATES ENTREPRENEURSHIP? There are varied approaches to understanding why some individuals decide to venture into Entrepreneurship and, thereby, break through traditional ways of doing things. Notwithstanding numerous studies on entrepreneurial traits, there are no well-defined psychological attitudes or profiles that describe all entrepreneurs or characteristics to which entrepreneurs generally conform. As Amar Bhide put it, There is no ideal profile. Entrepreneurs can be gregarious or taciturn, analytical or intuitive, cautious or daring. Some theoretical explanations of what motivates entrepreneurs include the following: The Achievement Orientation or the desire to achieve purely for the sake of achievement alone. The interrelation between religion, norms, values, behaviour and the economy in a particular epoch.

The ability to comprehend opportunity, i.e. to reinterpret the meaning of things, fit them together in new ways and see what others may have missed, such as an unsatisfied demand. The capacity to sustain a high degree of interest in the advancement and technological development of the industrial process and in the improvement in the scale of industrial operations. The ability to make the best of what one has, in order to get what one needs, i.e. the capacity to innovate in figuring out the best ways to reach the market with minimum expenditure of time, effort and money The Study confirms that there is no single motivating factor that triggers the decision to become an entrepreneur. The significant Motivation Triggers are: Independence (stemming from the freedom to do ones own thing), Market Opportunity, Family Background in Entrepreneurship, a New Idea (with business potential), the prospect of Challenge offered by Entrepreneurship as well as a long cherished Dream Desire to become an entrepreneur. Internal factors (such as Independence, Challenge and Dream Desire, i.e. the idea that by nature, man cannot but be an entrepreneur) cumulatively account for the bulk of the total motivating triggers (42%). This lends credence to the argument that the entrepreneurs are driven more by their own inner drive rather than by external conditions. At the same time, as elaborated in the paragraphs that follow, market opportunity as an additional motivating factor has also shown a steady rise over the last two decades. This fact gives rise to the argument that macro environment plays a crucial role in

influencing the initial decision of an individual to become an entrepreneur. To illustrate the many reasons for becoming an Entrepreneur, here aresome direct quotes from entrepreneurs interviewed in the previous study conducted by NKC: Entrepreneurship offers the opportunity to create something ofones own. Entrepreneurs get the opportunity to make the road as well as walk on it. Entrepreneurship allows people to think outside the box and make thoughts work. Entrepreneurs are not confined to a particular area of business; they need to know everything about how business runs. Entrepreneurship allows possibilities for constant self actualization. Entrepreneurship is about the ability to survive long enough till one succeeds. Entrepreneurship is about the sheer joy of taking an idea and making it work. Entrepreneurs are like lotuses born out of dirt and all they need is a flourishing environment. Entrepreneurs like to do it their way they are virtually unemployable. Entrepreneurship brings pride, passion and self-respect, from doing things on ones own. Entrepreneurship gives the freedom to try something new and break stereotypes. Entrepreneurship provides a constant learning experience and a continuous process of growth. Entrepreneurship brings a sense of belongingness derived from doing ones own thing and providing employment to many.

Entrepreneurship provides the opportunity to create wealth and make the best of the economic environment.

35. Further, market opportunity is a far significant motivating factor for the below35 age-group compared to those above that age. Variations According to Family Background: The study found that independence is the most powerful motivator for the first-generation entrepreneur (33%), while it has almost no significance in motivating second generation entrepreneurs (only 4% among those second generation entrepreneurs in the same business and only 3% for the second generation entrepreneurs in a different business). Variations According to Levels of Work Experience: The study found that levels of work experience significantly influenced motivational triggers. It found that family background became less significant with increasing levels of work experience. While this was the most significant trigger for those entrepreneurs who started out without work experience, it was the least important motivational factor for those with more than 10 years experience, for whom other factors such as market opportunity and challenge were more significant. NEW SOURCES OF FUNDS There are multiple institutions in the public, private and cooperative sectors of the Indian economy that cater to the credit needs of the SSI Medium and Large scale sector, both for fixed assets creation as well as for working capital. Consequent to the nationalisation of major banks in 1969, banking policy mandated that at least 40 per cent of bank credit should be directed towards the priority sector constituting agriculture, SSI and individual service and business sectors. Preferential treatment was also provided to the SSI sector via lower rates of interest on bank credit. The Small Industries Development Bank of India (SIDBI) was set up in April 1990 as

Variations in Motivation Triggers Variations According to Region: The most significant motivating trigger for Entrepreneurship was found to be wide ranging across regions from family background being the prime trigger in Ahmedabad and Kolkata to market opportunity serving as the most important motivator in Bangalore. Gujarat has been a traditional trading and business hub that may explain greater influence of family background as a prime trigger. In West Bengal, the seeds of Entrepreneurship were sown by migrants belonging to traditional business communities from Rajasthan. On the other hand, Bangalore, an IT hub and a centre of educational excellence, has emerged as an attractive centre for knowledge Entrepreneurship, driven by increasing market opportunity. Chennai and Pune have also been educational centres of repute, which may explain the pre-eminence of idea-driven Entrepreneurship in these cities. Interestingly, entrepreneurs from Hyderabad valued independence as a trigger more than other factors. Variations According to Gender: For female entrepreneurs, the independence derived from Entrepreneurship, as well as the identification of a marketable idea are the most important motivators (25% each). Male entrepreneurs on the other hand, were found to be most significantly influenced by family background (24%) with independence (21%) coming a close second as a motivating trigger. Variations According to Age: Ideadriven motivators are more significant for entrepreneurs above the age of 35 and exert a minimal influence on those below

the principal financial institution for promotion, financing and development of the SSI sector and for coordinating the activities of other institutions engaged in similar activities. A Fair Practices Code has also been adopted by SIDBI which, inter-alia clearly sets out the procedures that would be followed in respect of loan applications, appraisals and disbursements. In order to boost investment in SSI sector, the benefits of exemption of capital gains arising from the transfer of long-term capital assets are allowed if such capital gains are invested in bonds by the Small Scale Industries Development Bank of India (SIDBI) with effect from April 2002.

Angel Investors: Angel investors are typically high-net-worth individuals (HNIs) who have often been successful entrepreneurs themselves. They re-deploy their wealth in next-generation businesses. They invest in new-idea enterprises (that do not yet have external validation), help bring these ideas to market, take significant risks and invest a lot of time and energy in mentoring, management guidance and networking. Angel investors are also governed by considerations other than finance alone, such as belief in Entrepreneurship itself. Their time horizons are limited and aimed at ensuring the availability of larger institutional funding, mainly from VCs. In recent years, institutional seed funds that perform the roles of sophisticated angel investors have also emerged in India. Where access to early-stage capital is a serious issue, angel investors have the potential to become one of the most important catalysts for increasing the number of new entrepreneurial ventures in India. Venture Capital: Venture capital funding provides funds for early stage companies once they have passed the seed stage and report some returns. VC investments are traditionally made for scaling up

operations (i.e., developing, launching and expanding new products or services). VCs take lesser degrees of risk and invest more money than angel investors. However, a VC is about more than financial support alone. VCs provide entrepreneurial support and partnership-based value-addition, often in the form of providing financial advice, human resources, IP issues, establishing networks with customers and overall guidance in company strategy. In return, VCs also retain a degree of control over decisions governing the companys functioning (e.g., through board seats and legal covenants), and usually look at fixed time horizons for predetermined exit, usually via a private equity fund. As illustrations, two recent VC investments by Helion Ventures Limited provide insights on the type of new, high value added, wealth generating ideas that are evolving in India today. Private Equity: Private Equity (PE) funds are among the largest sources of funding for enterprises that are relatively secure with an established track record, requiring signicantly large funds for expansion and growth. PEs make capital investments in companies not yet quoted on a stock exchange in exchange for equity and management participation. As such, they take reasonably well-defined risks and their exit strategy is usually up to the stage when the company goes public or gets acquired at high value. A Credit Guarantee Fund Scheme for Small Industries has been launched and the SIDBI set up the Credit Guarantee Fund Trust for Small Industries (CGTSI), to implement the Guarantee Scheme. The main objective of CGTSI is to facilitate hassle-free credit to the SSI sector and encourage banks to shift from collateralbased or security-oriented lending. The CGTSI is in the process of developing a Mutual Credit Guarantee Scheme (MCGS) on the lines of similar schemes in Italy and other European countries; such schemes

essentially involve a guarantee from industry associations in which the borrower is also a member which, in turn, enhances the lenders confidence. The SIDBI has also encouraged the growth of the venture capital industry for hi-tech SME units in India by promoting 13 State / regional level funds and setting up an all India Venture Fund. GOVERNMENT SCHEMES NEW ENTREPRENEURS FOR

The RBI will discuss the recommendations of the informal Groups in a wider forum for possible implementation. The SSI sector has so far been resilient to the impact of the policy changes increasing domestic and foreign competition following the de-reservation and import liberalisation of items as well as the relatively high interest rates- and has withstood the general deceleration in the industrial sector during 1997-98 to 200203. It has been well recognised that the investment limit of Rs.10 million for the remaining SSI units leaves little scope for such producers to achieve economies of scale and scope and become competitive. Today, it is, in fact, incentive-compatible for SSI units to remain deliberately small by fragmenting production - in order to avail of fiscal benefits and to stay outside the purview of labour laws. The pace of de-reservation of SSI items, therefore, needs to be accelerated so as to ensure that size does not remain a constraint to higher production, cost-efficiency and technological up gradation. Some of the important schemes designed by different institutions in the country especially for the women are as follows; Mahila Vikas Nidhi: SIDBI has developed this fund for the entrepreneurial development of women especially in rural areas. Under Mahila Vikas Nidhi grants loan to women are given to start their venture in the field like spinning, weaving, knitting, embroidery products, block printing, handlooms handicrafts, bamboo products etc. Rashtriya Mahila Kosh: In 1993, Rashtriya Mahila Kosh was set up to grant micro credit to pore women at reasonable rates of interest with very low transaction costs and simple procedures.

The Government of India had launched many Schemes for technological upgradation and modernisation, protection of workers affected by technological upgradation and modernization, infrastructure development, entrepreneurship development, as well as increase in the investment limit (to Rs.50 million) for SSI units producing certain items. The Government of India set up a new Ministry in October 1999 to provide more focussed attention to the development of the SSI sector. Several expert committees had also been set up over the 1990s to assess the problems of the SSI sector. Most of the recommendations of these Committees relating to simplification of loan application forms, launching of a new Credit Guarantee Scheme, rising of composite loans, etc have been accepted and implemented. The Reserve Bank of India (RBI) has also been emphasising on the flow of bank credit to micro enterprises in rural and semi-urban areas set up by vulnerable sections of society including women. A number of initiatives have been taken in this regard and banks have been advised to provide maximum support to Self Help Groups. Furthermore, four informal Groups have been set up by the Reserve Bank to analyse various micro-finance issues relating to (i) structure and sustainability; (ii) funding; (iii) regulations; and (iv) capacity-building.

Trade related entrepreneurship assistance and development (tread) scheme for women Traditionally, women have been amongst the most disadvantaged sections of our society with regard to access to and control over resources. Problems faced by them continue to be grave particularly for illiterate and semi-literate women of rural and urban areas. Apart from counseling and training, availability of credit poses the most serious problem for the poor women. In order to alleviate their problems, the Ministry of MSME, Government of India has launched a scheme titled "Trade Related Entrepreneurship Assistance and Development" (TREAD) for economic empowerment of women through the development of their entrepreneurial skills in non-farm activities. The Office of the Development Commissioner (MSME) in the Ministry of MSME is responsible for the implementation of this scheme. Under this scheme assistance in the form of the Government of India (GoI) grant of up to 30 per cent of the total project cost, as appraised by the lending agency is provided to the Non Governmental Organizations (NGOs) for promoting entrepreneurship among target groups of women. The remaining 70 per cent of the project cost is financed by the lending agency as loan for undertaking activities as envisaged in the project. The NGOs can utilize the grant for training, counselling, tie ups for marketing on behalf of the beneficiaries, etc. besides their own capacity building for assisting women. CLCSS:- The Credit Linked Capital Subsidy Scheme The Credit Linked Capital Subsidy Scheme provides for 15% upfront capital subsidy for Technology up gradation for Manufacturing Enterprises .Technology up

gradation under the scheme would mean significant improvement in the present technology level to a higher one involving improved productivity and improvement of the product. This will also include packaging techniques, anti-pollution measures, energy conservation machinery, on-line quality control equipments & inhouse testing facilities. The financial subsidy by way of 15% subsidy is given subject to ceiling on eligible term loan of Rs one Crore. Special incentives for NE Regions: Units in the North Eastern Region which are availing financial incentives /subsidy under any other scheme from the Govt. in the region would however, be eligible for subsidy under CLCSS. NMCP Scheme:National Manufacturing Competitiveness Programme The Government has formulated a National Manufacturing Competitiveness Programme with an objective to support the manufacturing sector, particularly the Small& Medium Enterprises (SMEs) in their endeavour to become competitive in this age of globalization and freer trade. The components of the scheme and their objectives are: National programme on Application of Lean Manufacturing:- To provide direct assistance to enterprises for improving their manufacturing systems &competitiveness ; eliminating waste throughout the business cycle . Design Clinic scheme to bring expertise to the manufacturing sector: To provide expert advice and solutions on real time design problems; to develop alternative design strategy, etc. CGTMSE:Credit Guarantee Fund Scheme for Micro and Small Enterprises To ensure better flow of credit to MSEs by

minimizing the risk perception of financial institution& banks in lending without collateral security, a Credit Guarantee Fund Scheme for Micro and Small Enterprises was introduced by the Govt. of India. The Scheme covers collateral free facility up to Rs One crore extended by eligible lending institution to new & existing MSEs. In the State limited application of propagation of this scheme is contoured at present. However, ample scope exists for development and networking of micro and small sectors for industrial rejuvenation CONCLUSION: There is no common set of traits, psychological attitudes or profiles that apply to all entrepreneurs alike or to which all entrepreneurs generally conform. Significant motivating factors are: Independence (stemming from the freedom to do ones own thing), Market Opportunity, Family Background, a New Idea (with business potential), the prospect of Challenge, as well as a long cherished Dream Desire to become an entrepreneur. Internal triggers are the primary motivators, while external factors such as market opportunity are also growing in importance. There are variations in Motivation Triggers on parameters such as region, gender, age, family background, time period and levels of work experience. Challenge is the principal Motivation Driver or positive factor, even if not the most important trigger. Entrepreneurs view the future in terms of the nature and quality of work as well as turnover increase. By their very nature, entrepreneurs tend to be ambitious.A combination of debt and equity models will spur early stage nance for Entrepreneurship in the foreseeable future. Most of the entrepreneurs interviewed were self-nanced; at the same time, a majority of those who approached banks did receive loans. Yet, there is a widely held perception that it is

very difficult to get bank loans at the startup stage while becoming comparatively easy at the growth stage. While there are new initiatives and schemes, perceptions on bank nance have not improved for entrepreneurs who have started ventures after 2000, most of which are in the knowledge-intensive sectors. It is in these sectors, where the information asymmetries and perceived risk levels are considered higher, that Angels, VCs and PE funds are beginning to ll a crucial market gap and need incentives for more involvement.Improving risk. A number of steps have been initiated to promote the healthy growth of SSI, Medium and Large scale Sector. However, to ensure the prospects of these enterprises in the coming years will have to gear up to face the challenges of liberalisation. It is proved that given the inherent strength, the sector will develop a global vision, respond to more demanding standards of the customers and adopt key strategies that could take them ahead in competition. Credit should not be a constraint for viable projects. REFERENCES 1. Annual Report, 2011-12, IIE, Guwahati. 2. Annual Report, 2011-12, MSME, Govt. of India. 3. Kaulgud, Aruna (2003), Entrepreneurship Management, Vikash Publishing House Pvt. Ltd., New Delhi. 4. Khanka, S S (2006), Entrepreneurial Development, S. Chand & Co. Ltd., New Delhi 5. Mandal, Ram Krishna (2011), Entrepreneurship and Rural Development in North East India, DVS Publishers, Guwahati. 6. Office Files , Br.-MSME-DI, Itanagar, Arunachal Pradesh 7. Prasain, G P (2006), Entrepreneurship & Small Scale

Industries, Akansha Publishing House, New Delhi. 8. Siemens, Lynne (2012), Embedding Small Business and Entrepreneurship Training Within The Rural Context, The International Journal of 9. Entrepreneurship and Innovation, Vol. 13 No.3, pp. 165-178 10. Yazdanfar, Darush (2012), Information Asymmetry and Capital Structure-An Empirical Study of Micro Firms in Sweden, International Journal of 11. Entrepreneurship and Small Business, Vol. 17 No.3, pp. 304318 12. Arun Agrawal., (2004). Developing a Holistic Micro, Small and Medium Enterprises Policy Framework in the Fight against Poverty. 13. Asian Productivity Organization (1998). Developing Supporting Industries: Outsourcing Perspectives (Tokyo). 14. Bari, Faisal, Cheema, Ali, and Ehsan-ul-Haque, (2003), SME Development in Pakistan: Analyzing the Constraints on Growth, Pakistan Residential Mission 15. Dasanayaka.S (2007a), a brief note on Sri Lankan SMEs, in Paradigm Research Journal, Vol.X (1), page 69-76. 16. Dasanayaka.S (2007b) Business Incubators in Sri Lanka, in Cases in Business Management, Page 385 405, Ed. By Sahay, Stough.R and Saradana...D, AlliedPublishers Pvt Ltd in India. Websites 1. www.ibef.org 2. www.imf.org 3. www.ncf.com 4. www.planningcommission.org

DRINKS: THE PURE COMMODITY IN THE ERA OF BRANDING

Dr. Nitin Zaware, Association: Director, Adhalrao Patil Institute of Management, Manchar, Pune-410503 Mobile: +91- 9860121311/8308261661 email: nitinzaware@ gmail.com ABSTRACT: The soft drinks market till 1990s was in the hands of domestic players like Campacola, Thumps Up, Limca etc. but opening of MNC players, Pepsi which scores over Coke. Pepsi interred Indian market in 1991 and Coke reentered in 1993. Pepsi have been targeting its products towards youth and the sales have reached Rs. 689.24 Cr. Coke on the other hand struggled initially in establishing itself in the market and sales could reach Rs 451.55 Cr. Both multinational giants had used branding as one of the most fascinating marketing strategies for the purpose of winning or over coming competition; its efficiency is not in suspicion. This study is an analysis into the branding impact on consumer preferences for soft drinks, with focus on the contributory roles of its various elements in impacting consumer behavior. It was discovered among other things, that of all the elements of branding, company-of-make and packaging play a greater role than brand name and brand mark, in terms of influencing consumer preference for soft drinks. It recommended among other things that firms should focus more attention on the company name and packaging but should also integrate brand name and brand mark as supportive elements in fashioning an effective branding strategy for defeating competition. More prominence should equally be laid on institutional rather than brand advertising.

KEYWORDS: Branding, Brand equity, Consumer Preference, Soft Drinks

1. INTRODUCTION: From importance point of view, marketers and producers equally are developing increasing interest in branding strategy. Branding is one of the most fascinating marketing strategies used for the purpose of winning or over coming competition; its efficiency is not in suspicion. This study is an analysis into the branding impact on consumer preference for soft drinks, with focus on the contributory roles of its on various elements in impacting consumer behavior. The soft drinks industry in India is not an exception to this increasing adoption of branding as a strategy for winning the heart of consumers. Soft drinks business in India is a child of necessity. Necessity stemming from the fact that there is lack of potable drinking

water across the country at the time climatic temperature is increasing day by day can be said to be a new business in the Indian community. Days are not far away that customer may consider Soft drinks alternative option to packed drinking water. This scenario has simply made the greater part of the population. This is a thunder for the producing and developing branded soft drinks; that are fighting for supremacy in the market.

2. LITERATURE REVIEW: In poor countries it represents the failure of the government to provide basic public services to citizens, while for the wealthy it has often come to represent waste;

environmental destruction, the corruption of children by marketing, and the bankrupt absurdity of mass-consumer society as a whole; (Clarke, 2004). Relationships between a brand and its consumers have become one of the major research topics in brand management; (Aaker, 1996; Aaker et al., 2004; Blackston, 2000). Fournier (1994, 1998) states that such relationships must be viewed as highly vibrant entities, which can emerge in various forms. Long-lasting relationships can bear substantial benefits for the partners involved, especially in terms of financial gains for the firm, and may prove crucial to a companys lasting success; (Reichheld et al., 2000). This assertion is support by (Okafor, 1995) quoting (Morden, 1997), who posited that, Consumers seeing a favored brand (to which they may exhibit loyal behavior), may cut short the analysis of alternatives prior to the purchase decision, and proceed more rapidly towards the purchase. Moreover, a realization of the fact that branding as a marketing tool affects other product management decisions, confronts one with the fact that its impact on marketing activities and consumers cannot be over emphasized. (Okafor, 2009) captures the very essence of branding when he opined that apart from the herculean task that will be associated with trying to decide what manufacturers product to buy from all the unbranded products, other product management decisions, based on market segmentation, promotion, product positioning, pricing etc, would have been practically impossible. In a study by; (Smith and Brynjolfson, 2010). It is found that although each retailer offered homogenous products, brand was an important determinant of consumers preference. In furtherance of their research, they found that consumers used brand as a proxy for retailer credibility in noncontractible aspects of the products and service bundle, such as shipping reliability. 3. PROBLEM STATEMENT:

Commonly, when asked the non-price cause behind their preference for a particular brand of product over another, most consumers will claim Quality. However, one would accept this answer with a lot of ambivalence, given the fact that it is only on rare occasions that consumers would have what it takes to make an objective quality differentiation among alternative product brands. This category of consumers is highly informed and enlightened and their percentage is quite negligible in India. Furthermore, quality status approved by consumers to certain product brands is not real but perceived. It is mostly a figment of their perception. It therefore follows that, those marketers who know how best to manipulate consumer perception and therefore better position their brand in the minds of the consumers will definitely emerge winners in the marketing warfare. In the soft drinks industry in India, it may be expected that the issue of better quality should not arise. Even though the Government Authorities has set and are enforcing production and marketing standards for soft drinks thereby making every brand of soft drinks of standard purity and quality, yet most consumers of this product would readily pay a premium price or are price insensitive when it comes to the purchase of a particular brand of soft drinks. This could be; consumers in making preference are merely responding to the outcome of their perception which is a function of such attributes like brand name, mark, package, company-of-make etc. However, given the fact that many elements constitute branding, one is not sure if these elements play equal role in influencing preference or if some play a higher role than others. This is the heart of the problem of this study.

4. HYPOTHESES: The following hypotheses are tested in this study. Hypothesis One: H1: Branding has significant impact on consumer preference for soft drinks. Hypothesis Two2: H1: Brand name, brand mark, manufacturer Company and Brand Attributes play role in influencing consumer preference for soft drinks.

station. The probability sampling technique of Random Sampling was adopted to choose 100 respondent samples for this study. A set of questionnaire with two sections was administered to sample consumer respondents. The questionnaire contained both open-ended, dichotomous as well as Likert types of questions. For the purpose of data presentation, simple percentages, bar charts and pie charts were used. However, in our test of hypotheses and analysis/interpretation of data, simple and stepwise multiple regression techniques in the SPSS were applied. 6. DATA INTERPRETATION AND ANALYSES:

5. RESEARCH METHODOLOGY: Table 1: Influence of Branding factors on The population of study included Consumer preference employees of offices, banks and various institutions in Pune city and individuals at hotels, food mall, Bus station & railway Always Influence Sometimes Rarely Influence Not At All Influence Influence Response No of % No of % No of % No of % Respo. Respo. Respo. Respo. Brand Name Brand Mark Company of Make Packing 37 22 39 37% 22% 39% 41 42 39 41% 42% 39% 06 21 06 06% 21% 06% 16 15 16 16% 15% 16%

29

29%

44

44%

10

10%

17

17%

Source: Questionnaire survey

6.1 Brand Name and Consumer preference:

Influence

on

of-make influences their preference always, 39% said sometimes, 06% said rarely while 16% said not at all. The always and sometimes column is thus, (39% + 39% = 78%). 6.4 Packaging and Influence on Consumer Preference for soft drinks: For the purpose of ascertaining the influence of packaging on consumer preference for soft drinks, the data showed that 98 (29.25%) of the respondents were influenced always, 147(43.88%) were influenced sometimes, 32(9.56%) were rarely influenced while 58(17.31%) were not influenced at al. The above is a pointer that packaging is a strong influence on consumer preference for particular brands of soft drinks. This is most evident when the always and sometimes columns are added thus, (29.25% + 43.88% = 73.13%) Table 2: Consumer Belief that their Preference Brand is better in Quality than Others: Better in quality than other alternative brands Not didnt better in know quality than other brands 27 22

In the case of brand name, 37% of the respondents were always influenced by it, 41% said sometimes, 06 % said rarely while 16 % said not at all. Given the data above, it could be concluded that brand name (37% + 41% = 78 %), is a strong factor influencing consumer preference for soft drink. 6.2 Brand Mark and Consumer preference: Influence on

As it pertains to the influence of brand mark on consumer preference, 22% of the respondents asserted that it influences their preference always, 42 %) said sometimes while 16% said not at all. Although, the above data points to the fact that brand mark (22% + 42% = 64 %) has a strong influence on consumer preference of soft drinks, its influence is however, not as strong as that that of brand name (37% + 41% = 78 %).

6.3 Company-of-Make and Influence on Consumer preference: The data gathered here is a confirmation of the strong relationship between a brand name and company-of-make. This is against the backdrop that in certain cases, the brand name of a product cannot be separated from the company name and viceversa. Again, in some other extreme cases, the company name and brand name is one and the same thing (i.e. family branding). However, the data still show that the company-of-make plays a greater role in influencing consumer preference for soft drinks than the brand name. This could be seen from the fact that, out of total respondents, 39% opined that company-

No of respondents % of Respondents

51

51 %

27%

22%

Source: Questionnaire survey

6.5 Consumer Belief that their Preference Brand is better in Quality than Others With reference to the data collected, more than half, 51% of the respondents believed that their preference brand is better in quality than other alternative brands, 27% said No while 22% said they didnt know. Though

this assertion of better quality is obviously a figment of consumer perception, it is nevertheless a guide in their preference of soft drinks.

All of the empirical studies explored in this work supported the outcome of this analysis in one way of the order. From the conclusion of (Lead Edge, 2005) that branding influences customer loyalty; (Daye, Van Auken & Asacker, 2008) assertion of the impact of color psychology on consumer preference, (Roll, 2009) advise that a wrong brand name can kill a product; (Kim & Chung, 1997) proposal that the popularity and company-of-make of a brand gives it an advantage and finally, (Smith & Brynjolson, 2006) profession that effective branding confers price advantage on a product, are all pointers to the fact that branding is an influencing factor on consumer preference.

4.6 Consumer Ranking of the Different Elements of Branding as they Affect their Preference When respondents were asked to rank/assign scores to the different elements of branding including advertisement, as they affect their preference of soft drinks, company-of-make came first with a total of 82.95%, brand name followed with a score of 66.30, packaging 75.67%, brand mark 54.03%, colour of label 40.86%, while advertisement took the last position with 888. The scoring supports the earlier conclusion that was drawn between company-of-make and brand name. See appendix for pie chart.

Hypothesis Two2:

7. HYPOTHESES TESTING: Hypothesis One: H1: Branding has significant impact on consumer preference for soft drinks. H0: Branding has no significant impact on consumer preference for soft drinks.

H1: Brand name, brand mark, manufacturer Company and Brand Attributes play role in influencing consumer preference for soft drinks.

H0: Brand name, brand mark, Manufacturer Company and Brand Attributes do not play role in influencing consumer preference for soft drinks. For the purpose of testing this hypothesis, the Stepwise Multiple Regression Method was used. The result of the analysis shows that company-of-make had the most significant effect of 0.012 at 5% t-value of 2.527 and f-ratio (model specification) of 6.384, followed by packaging, brand and brand mark in that order. This means that Company-of-make, packaging, brand name and brand mark as elements of branding do not have equal effect on consumer preference for regulated soft drinks. The implication of this is that,

In conducting this test of hypothesis, the Simple Linear Regression Model was used. The result of the analysis showed a very high significant level of 0.013 at 5%, t-value of 2.489 and an f-ratio (model specification) of 6.193. This shows that branding has a significant effect on consumer preference for soft drinks. Therefore, the better the branding strategy the more likely those consumers will choose a particular brand of soft drinks over others.

consumers of soft drinks, most often than not consider the company-of-make in making their preference than other elements of branding. The result is supported by (Lindstrom, 2008), (Kim & Chung, 2008), and (Okpara, 2007).

6) The implication of the finding to the managers is the need to develop captivating brand names which can then be supported by good quality soft drink.

8. FINDINGS: A summary of the findings is below: 1) Branding is a genuine tool for positively influencing consumer preference and its influence is stronger than product quality.

7) The company-of-make and packaging were discovered to play primary role in influencing consumer preference for soft drinks.

9. CONCLUSION: Soft drinks are an exceptionally clear example of the power of branding to make commodities a meaningful part of daily life. Of course, brands are not themselves empty bottles, filled with magic by the all powerful tools of advertising and marketing. As many recent theorists and critics have shown, brands have a history and cultural life that makes them more than puppets; each brand is a collaborative construction by many parties. There is no contradicting the fact that branding is one of the most sought after strategies in marketing for the purpose of influencing consumer preference positively. This research work, aside laying a confirmation to this assertion, went further in introducing a new dimension to the importance of branding in influencing consumer preference by dissecting the anatomy of it and thereby isolating its various elements to determine their individual contribution in determining consumer preference.

2) All elements of branding do not have equal effect on consumer preference for soft drinks. Company-of-make and packaging play a greater role while brand name and mark play a supportive role.

3) Packaging, with all its attendant elements plays a great role in determining consumer preferences for soft drinks.

4) Consumption complex which is a function of consumer perception bias could be manipulated by marketers for competitive advantage of a firm over others through the instrumentality of branding.

5) There are many bottling companies in India which translates to severe competition among them. Soft drinks once produced under hygienic conditions have similar physical and chemical features but in it one major distinguishing characteristic is the brand name. The study had established that branding (brand name) had stronger influence than product quality.

Against this backdrop, this research work determined the fact that company-ofmake and packaging are of greater influence on consumer preference than brand name and mark. In the light of this, this research proposes a review of the existing models of consumer buying behavior models to take into

consideration the issue of consumer perception bias and consumption complex. 7) In as much as branding had been confirmed to be an important preference influencing factor, excessive brand extension strategy should be avoided to forestall boring consumers and de-marketing them.

10. RECOMMENDATIONS: In the aftermath of the research findings, the following recommendations are hereunder proffered;

1) Branding should play the lead role among the product related strategies in fashioning out a marketing strategy for soft drinks.

8) In carrying out promotion for soft drinks brands, firms should concentrate more on institutional or corporate advertising rather than product advertising. Again, social cause promotion should be of particular note to the firms.

2) Firms employing the tool of branding should lay more emphasis on company-ofmake and packaging in devising a branding strategy.

However, marketers can equally employ the instrument of promotion to influence Consumer Perception Bias towards their brands even when it is a new task.

REFERENCES: 3) A firms branding strategy should be an integration of all the elements with none isolated but each playing a complementary role to others. Aaker, D.A. (1996) Building Strong Brands. New York: Free Press.

4) Firms should manipulate the possibility of consumption complex in getting customers to choose their brand through proper perception management and by the instrumentality of branding.

Aaker, J.L., Fournier, S. and Brasel, S.A. (2004) When Good Brands Do Bad, Journal of Consumer Research 31(June): 116.

5) Positioning and repositioning of products should be carried on with branding as the leading strategy.

Blackston, M. (2000) Observations: Building Brand Equity by Managing the Brands Relationships, Journal of Advertising Research 40(November/December): 101 5.

6) Efficient distribution strategy is a supportive function to branding; therefore firms must ensure that their distribution network is effective and efficient.

Fournier, S. (1998) Consumers and their Brands: Developing Relationship Theory in Consumer Research, Journal of Consumer Research 24(4): 34373.

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Financial Inclusion and Reserve Bank of India

S. Annet Abrao, Asst Professor, Dept of Commerce (self-financed stream), Madras Christian College, East Tambaram, Chennai- 600 059. Mobile: 98402 50937, e-mail: annetavalon@gmail.com
Abstract Unrestricted access to public goods and services is the symbol of an efficient society. Banking services being in the nature of goods should be available to all the strata of the society without any restrictions and this is the essence of Financial Inclusion. Financial Inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income group of the society. Financial Inclusion has gained momentum in India in the early 2000s and Reserve Bank of India being the apex bank of the country has realized the importance of including the under privileged also under its umbrella of banking services to all to ensure more economic progress for the country. Keeping this as top priority, the Reserve Bank of India has taken initiatives towards the same. This paper aims to discuss in detail the efforts of the RBI in this direction and the extent of financial inclusion happened in India. The country needs enhanced efforts by the entire Banking system in the country towards complete financial inclusion and therefore it is important to identify the recent initiatives of RBI for achieving the same. The paper aims to illustrate the guidelines issued by the RBI for financial inclusion from time to time which resulted in the Banking Sector becoming one of the important growth catalysts of the country. The paper also intends to find out the further more measures required to be adopted by the RBI for attaining complete financial inclusion in the country. Key words: Financial Inclusion, Reserve Bank of India, Guidelines, Measures, Banking Sector, Growth catalyst.

Introduction Several countries across the globe now look at financial inclusion as an important means of overall growth in the country wherein every citizen is able to use his/her earnings as a financial resource that can improve their financial status and also contribute to the progress of the nation. Financial inclusion has become one of the most critical aspects in the context of inclusive growth and development. The importance of this aspect for promoting inclusive growth has been widely recognized and taken up as priority in the policy circles of many countries. Financial inclusion is the process of ensuring access to appropriate financial products and services needed by weaker sections and low-income groups at an affordable cost in a fair and transparent manner by institutional players. Initiatives

for financial inclusion normally come from the financial regulators, governments and the banking industry. The history of financial inclusion in India is much than the formal adoption of its objectives. Various initiatives such as Nationalisation of banks, Lead bank scheme, incorporation of Regional Rural Banks and formation of Selfhelp groups were all taken up in the country for taking the banking services to the masses. Though it is the Banking sector which has taken the lead role in India for ensuring financial inclusion in the country, it is the combined efforts of the Government, Apex Bank and the Banking sector which has paved the way for whatever inclusive growth which has been achieved so far in India. The Reserve Bank of India (RBI) has taken several steps over the years to increase access to at least basic banking services to the poorer segments of the society.

Objectives of the study To identify the measures taken by the RBI towards achieving financial inclusion To understand the extent of financial inclusion resulted in the country To suggest measures for enhanced financial inclusion in the country.

Review of Literature Debesh Roy (2011) has analysed the various initiatives taken up in the country to identify the profitable models suited for our country. The policy initiatives of the Reserve Bank of India and NABARD to promote financial inclusion in the country were explained in this research to know the profitable models towards achieving inclusive growth in India. A study by Suresh Chandra Bihari (2011) includes an introduction to financial inclusion and analyses the international scenario and global practices on financial inclusion. The study takes into account the recommendations of the Rengarajan Committee and the steps taken to fill the gap. The paper ends with stressing the importance of spreading financial literacy and thus making people aware of what financial inclusion to achieve. Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India in his keynote address on Financial inclusion indicators at the workshop in Kuala Lumpur in 2012 has explained about the financial inclusion initiatives in India and the achievements in this area so far. In their paper on the effect of literacy and bank penetration on financial inclusion in India Sanatanu and Pinki Dutta have used quartile regression model to test the significance of the impact of literacy percentage and number of bank offices (per 105 people) on the conditional percentiles of the number of accounts per hundred adults,

in 35 states and union territories in India. The latter is a measure of financial inclusion in a region. The study finds that bank penetration, measured by number of bank offices (per 105 people), has more significant impact on the level of financial inclusion, than literacy percentage. However literacy has significant positive impact on the higher (80 or above) percentile of the conditionaldistribution of the number of accounts per hundred adults in a region with a given level of literacy. If a state/ union territory is among the top 20 percent states/union territories in terms of financial inclusion (with a given literacy percentage), then increase in literacy percentage can further improve the financial inclusion in that region. However literacy alone cannot improve the level of financial inclusion significantly, especially if the state/union territory is not among the top 30 percent states/union territories in terms of financial inclusion with similar literacy percentage. In those regions, increase in bank penetration is likely to improve the level of financial inclusion significantly rather than improving literacy percentage. Methodology of the study The study is based on the secondary data collected from books, journals, reports of RBI and various websites. Initiatives of RBI towards Financial inclusion India has for a long time recognized the social and economic imperatives for broader financial inclusion and has made enormous contribution to the economic development by finding innovative ways to empower the poor. Starting with the nationalization of banks, priority sector lending requirements for banks, lead bank scheme, establishment of Regional Rural Banks (RRBs), service

area approach etc., many steps have been taken by the RBI over the years to increase the access to all the segments of the society. In India, RBI has initiated several measures to achieve greater financial inclusion and some of these steps are mentioned below: No-frills account: In November 2005, RBI directed banks to offer a basic no-frills banking account with low or zero minimum balance and minimum charges for operating the account to enhance the outreach of such accounts to low income groups. Banks are also advised by the RBI to provide small overdrafts in such accounts. Simpler KYC Norms: In August 2005, the KYC procedure for opening accounts was simplified for accounts with balances not exceeding Rs. 50,000 and credits not exceeding Rs. 1,00,000 in a year to ensure that low income group customers do not encounter difficulties in opening bank accounts. Easier Credit facility: RBI has asked the Banks to introduce a General Purpose Credit Card (GCC) facility up to Rs. 25,000, but the facility remains underutilized. Business Correspondents (BCs) : In January 2006, RBI permitted Banks to engage business facilitators (BFs ) and BCs as agents for providing banking and financial services to all. The BC model ensures door delivery of services. The list of individuals and entities that can be engaged as BCs is revised from to time to enhance inclusive growth. Use of Information and Communication Technology (ICT) : Banks have been advised to make effective use of ICT, to provide banking services at the doorstep through the BC model to enable even the

illiterate customers by using biometrics thereby ensuring safety of transactions. Adoption of Electronic Benefit Transfer (EBT): Banks have been advised to implement EBT through BCs to transfer social benefits electronically to the bank account of the beneficiary, thus reducing dependence on cash and lowering transaction costs. Simplified branch authorization: In December 2009, domestic scheduled commercial banks were permitted to freely open branches in Tier II to Tier IV cities with a population of less than 50,000 under general permission, subject to reporting. In the North-Eastern States and Sikkim Domestic commercial banks can now open branches in rural, semi-urban and urban centres without the need to take permission from RBI in each case subject to reporting. Opening of Branches in unbanked rural centres: Banks have been mandated in the April monetary policy statement to allocate at least 25% of the total number of branches to be opened during a year to unbanked rural centres. Road map for providing banking services in unbanked villages: RBI advised the banks to draw up a road map for every unbanked village having a population of over 2000 by March 2012. Such banking services need not necessarily be extended through a branch but could also be provided through any of the various forms of ICT based models. About 73,000 such unbanked villages have been identified and allotted to various banks through a state level bankers committee. Financial inclusion plans for banks for three years: Banks, both public sector and private have been advised by the RBI to submit a board approved three year financial

inclusion plan starting April 2010. These plans include self-set targets in respect of all the initiatives of the banks for the financially excluded segments of the society. Financial inclusion- The achievement so far India has made enormous leap towards financial inclusion but still, there is a long way to go. About 5,00,000 villages are yet to be provided with banking services. The following tables will reveal the extent of inclusive growth achieved in the country in spite of the initiatives of the RBI: Table :1 Number of branches as on 30-612 Bank grou p Ru ral Urb an Semi urba n 1422 3 3580 Metrop olitan Tota l

Table :2 Number of bank branches of Scheduled Commercial Banks over the years Period December 1969 March 1990 March 2012 Number 8826 59762 93659

Source: Reserve Bank of India The above tables will clearly tell us that there are still a lot of untapped corners in India with regard to financial inclusion. Though there has been effort from all the participants in this regard, a systematic approach will go a long way in achieving the inclusive growth. In a networked India in which banking services are extended to all villages, ultimately, a so-called model will emerge where customers will have the option to transact with the bank of their choice in any village by using Unique identity enabled micro-ATMs reducing the dependence on cash and lowering transaction costs. The task is huge, but not impossible to achieve. Steps in this regard could be the following: Awareness in general, coupled with financial awareness on opening and operating accounts must accompany the financial inclusion initiative Banks should prepare comprehensive plans to cover all the villages in India through a mix of branchless banking and bricks and mortar branch banking Adequate infrastructure such and physical connectivity along with uninterrupted power supply should be available. All stakeholders will have to work together through sound and purposeful collaborations.

Publi 221 c 46 sector Privat 155 e 5 sector Forei gn Regio nal Rural Bank s Total 7 122 58

178 03 466 0 9 309 4

13231

6740 3 1341 6 324 1633 0

3621

61 830

247 148

359 66

255 66

1869 4

17247

9747 3

Source: Reserve Bank of India

Mindset, cultural and attitudinal changes at gross roots and cuttingedge technology levels of branches of banks are needed to impart organizational resilience and flexibility. Banks should institute systems of reward and recognition for the staff successfully executing new products and services in rural areas.

2. Government of India, Report of the Committee on Financial Inclusion, Chairman-Dr. C. Rengarajan, Jan 2008. 3. Mandira Sharma and Jesim Pais, Financial Inclusion and Development: A Cross Country Analysis, August 2008. 4. Financial Inclusion an abiding virtue, The Hindu, Jan 16, 2006. 5. www.rbi.org.in

Conclusion Economic growth follows financial inclusion. Boosting business opportunities will definitely increase the economic growth in the country. Our dream of inclusive growth will not be complete until we create micro entrepreneurs across the country. Financial inclusion is the road that India needs to travel towards becoming a global player. Financial access to all will attract global players to our country thereby increasing employment and business opportunities. Inclusive growth will act as a source of empowerment and allow every citizen to participate in the economic and social progress. References: 1. Chakraborthy K.C., Banking and Beyond: New Challenges before Indian Financial System, RBI Monthly Bulletin, April 2011.

HOWS LIFE: WORK LIFE BALANCE

(Under the Theme of Human Capital Management) Prof Parul Martin Assistant Professor,NIT Graduate School of Management, Nagpur M: +91-9096168452, E: parul.martin@gmail.com And Prof Shraddha Wilfred Assistant Professor,NIT Graduate School of Management, Nagpur M: +91-9890916628, E: shraddha.wilfred@gmail.com
ABSTRACT Work is about a search for daily meaning as well as daily bread, for recognition as well as cash, for astonishment rather than torpor, in short, for a sort of life rather than a Monday through Friday sort of dying Studs Terkel Finding a suitable balance between work and daily living is a challenge that all workers face. In particular, families are most affected. People spend one-tenth to one-fifth of their time on unpaid work. The distribution of tasks within the family is still influenced by gender roles: men are more likely to spend more hours in paid work, while women spend longer hours in unpaid domestic work. An important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. Furthermore, the more people work, the less time they have to spend on other activities, such as personal care or leisure. The amount and quality of leisure time is important for peoples overall well-being, and can bring additional physical and mental health benefits. As per the reports of OECD (Organization for Economic Co-operation and Development) men in OECD countries spend 131 minutes per day doing unpaid work, women spend 279 minutes per day cooking, cleaning or caring. This average difference, approximately 2.5 hours per day, conceals many disparities among countries. For instance Turkish and Mexican women spend between 4.3 and 5 hours more than men working on domestic chores, while the difference is only a little over one hour in the Nordic countries. Similarly, average person in the OECD works 1 749 hours a year and devotes 62% of the day, or 14.8 hours, to personal care (eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.). Fewer hours in paid work for women do not necessarily result in greater leisure time, as time devoted to leisure is roughly the same for men and women across the 20 OECD countries studied. Most recently, there has been a shift in the workplace as a result of advances in technology. As Bowswell and Olson-Buchanan stated, "increasingly sophisticated and affordable technologies have made it more feasible for employees to keep contact with work." Employees have many methods, such as emails, computers and cell phones, which enable them to accomplish their work beyond the physical boundaries of their office. Employees may respond to an email or a voice mail after-hours or during the weekend, typically while not officially "on the job." Keywords: OECD, Work-life Balance

WORK LIFE BALANCE Work is about a search for daily meaning as well as daily bread, for recognition as well as cash, for astonishment rather than torpor, in short, for a sort of life rather than a Monday through Friday sort of dying Studs Terkel Work-life Balance is about staying connected to me, to my values, to the relationships I create along the way and to work and actions that are meaningful.

in unpaid domestic work. While gender imbalances are shaped by culture, policy makers can help to address the issue by encouraging supportive and flexible working practices, thereby making it easier for parents to strike a better balance between work and home life.

Why does work-life balance matter for well-being? An individuals ability to satisfactory combine work, family commitments and personal life is important not only for the well-being of the person but also for that of the whole household. In particular, the wellbeing of children is strongly affected by the capacity of parents to both work and spend an adequate amount of time with them. Parental nurturing is crucial for child development; especially in the early years and prime age adults (typically women) also play a critical (and increasingly important) role for the care of their elderly parents. A balanced allocation of time between work and personal life is also important at a society-wide level, as it ensures that people have sufficient time to socialize and participate in the life of the community. When your work life and personal life are out of balance, your stress level is likely to soar. There was a time when the boundaries between work and home were fairly clear. Today, however, work is likely to invade your personal life - and maintaining worklife balance is no simple task. Still, work-life balance isn't out of reach. Start by evaluating your relationship to work. Then apply specific strategies to help you strike a healthier balance.

With insane work routines, a majority of us are in a fix when it comes to striking the right balance. Managing that perfect balance between your professional and personal life is a tough act. The ability to combine work, family commitments and personal life is important for the wellbeing of all household members. It is also important for society as a whole, as it ensures that people have sufficient time to socialize and participate in the life of the community. This chapter presents a selection of indicators that describe the distribution of peoples time between paid work, time with family, commuting, leisure and personal care. The balance of work and non-work activities has changed considerably in recent decades, with overall gains in leisure and reductions in hours worked. However, these trends conceal the increased complexity of peoples lives, with both men and women taking on a wider variety of tasks in the workplace and at home. The distribution of tasks within the family is still influenced by gender roles: men are more likely to work longer hours of paid work, while women spend longer hours

Married to your work? Consider the cost It can be tempting to rack up hours at work, especially if you're trying to earn a promotion or manage an ever-increasing workload. Sometimes overtime may even be required. If you're spending most of your time working, though, your home life will take a hit. Consider the consequences of poor work-life balance:

delegate activities you don't enjoy or can't handle - or share your concerns and possible solutions with your employer or others.

Take advantage of your options Ask your employer about flex hours, a compressed workweek, job sharing, telecommuting or other scheduling flexibility. The more control you have over your hours, the less stressed you're likely to be.

Fatigue When you're tired, your ability to work productively and think clearly may suffer which could take a toll on your professional reputation or lead to dangerous or costly mistakes. Lost time with friends and loved ones If you're working too much, you may miss important family events or milestones. This can leave you feeling left out and may harm relationships with your loved ones. It's also difficult to nurture friendships if you're always working. Increased expectations If you regularly work extra hours, you may be given more responsibility. This may lead to only more concerns and challenges. Strike a better work-life balance As long as you're working, juggling the demands of career and personal life will probably be an ongoing challenge. Use these ideas to help you find the work-life balance that's best for you:

Learn to say no whether it's a co-worker asking you to spearhead an extra project or your child's teacher asking you to manage the class play, remember that it's OK to respectfully say no. When you quit doing the things you do only out of guilt or a false sense of obligation, you'll make more room in your life for the activities that are meaningful to you and bring you joy. Leave work at work With the technology to connect to anyone at any time from virtually anywhere, there may be no boundary between work and home unless you create it. Make a conscious decision to separate work time from personal time. When you're with your family, for instance, turn off your phone and put away your laptop computer.

Track your time Track everything you do for one week, including work-related and personal activities. Decide what's necessary and what satisfies you the most. Cut or

Manage your time Organize household tasks efficiently, such as running errands in batches or doing a load of laundry every day, rather than saving it all for your day off. Put family events on a weekly family calendar and keep a daily todo list. Do what needs to be done and let the rest go. Limit time-consuming misunderstandings by communicating clearly and listening carefully. Take notes if necessary.

Bolster your support system At work, join forces with co-workers who can cover for you - and vice versa - when family conflicts arise. At home, enlist trusted friends and loved ones to pitch in with child care or household responsibilities when you need to work overtime or travel. Nurture yourself Eat healthy foods, include physical activity in your daily routine and get enough sleep. Set aside time each day for an activity that you enjoy, such as practicing yoga or reading. Better yet, discover activities you can do with your partner, family or friends - such as hiking, dancing or taking cooking classes. Know when to seek professional help Everyone needs help from time to time. If your life feels too chaotic to manage and you're spinning your

wheels worrying about it, talk with a professional - such as a counselor or other mental health professional. If your employer offers an employee assistance program (EAP), take advantage of available services. Remember, striking a healthy work-life balance isn't a one-shot deal. Creating worklife balance is a continuous process as your family, interests and work life change. Periodically examine your priorities - and make changes, if necessary - to make sure you're keeping on track. Aftermath of work-life balance fallout: Higher rates of absenteeism Higher rates of staff turnover Reduced productivity Decreased job satisfaction Rising healthcare costs Lower levels of organisational commitment and loyalty Poor customer service etc.

A larger slice of the cake:

Countersteps to work out the Imbalance: "Focus your time and attention on things you can control." Here are some ways to bring a little more balance in daily routine: Stephen Covey's Four Quadrants and Work-Life Balance Theory

1. Important and Urgent activities reside in the Quadrant of Stress. Items those have to get done and will make an impact on your life. 2. Activities that are important but not urgent reside in the Quadrant of Value. Items that need to get done, but will not really have an impact on your life. 3. Activities that are not important yet urgent reside in the Quadrant of

Deception. Items that dont need to get done, but which may provide a great deal of fun or lasting memories. 4. Activities that are not important and not urgent reside in the Quadrant of Regret. Items for which no one is depending on you, and that do not impact your health or happines

Balance is not static In other words, life is forever changing! And so too is the correct balance for each of us. Year by year, week by week and day by day our balancing needs must be adjusted to suit current circumstances. Key point: We move out of balance regularly and need to make a few adjustments to come back into balance. Balance is about value or Build downtime into your schedule

When you plan your week, make it a point to schedule time with your family and friends and activities that help you recharge. To have a balanced, happy life we must be living our lives in line with our core values. Too many people spend copious amounts of time on areas of their life that just aren't that important. Key point: If family is the most important thing in your life then make sure you are devoting enough quality time to this area.

Effective time management To manage your time is to manage your life. To live a balanced life, you cannot afford to waste your valuable time on unimportant things. Procrastination is a common life balance killer as we often put off important things to another day. The trouble is that another day doesn't come, or it comes too late. Don't put off to tomorrow what can be done today, keeping in mind that it must fit in with what you value most. Action item: Always ask yourself - what is the best use of your time right now? Enjoy the moment How much of life do you enjoy on a day to day basis? Many people cannot enjoy themselves fully, because they are forever thinking about what they should be doing! A great example of this is an executive who takes his son to a soccer game and spends game time on the phone to clients! How much quality' time do you spend with your loved ones? When was the last time you really had fun? Children laugh around 300 times a day on average. As adults, we laugh around 17 times a day. Why the big difference? Key point: When was the last time you sat and tried to devour the beauty of the world around you like smelling the roses? No really, when was it, or have you forgotten? Set goals in all areas of your life It is not enough to know what you truly value. You must plan and prioritize your life around these values! If you don't do this, it is very easy for your life to become out of balance. To ensure that you spend time where it counts, plan and prioritize your time on a daily, weekly, monthly and yearly basis. These might include: your child's ballgame, having a drink with a friend, or

simply time reading a book. This only takes a few minutes a day, but can make the world of difference! Key point: Use your diary to record personal commitments as well as work ones. Attitude of gratitude Focusing on the many wonderful things you have in your life will give you more positive energy. Life is full of ups and downs, and we must accept that as part of our reality. We have a choice on where we focus our attention. Too often we focus our attention on disheartening thoughts rather than uplifting and motivating ones. Your life is what your thoughts make of it. Key point: Change your attitude, and you change your life! Inspiring 86,400 If you work for 45 years, for 48 weeks a year for an average of 8 hours a day, you will amass 86,400 hours in your working life. That equates to 5,184,000 minutes! 86,400 is also a significant number in that it is the number of seconds we have available to us each day. So if we are going to work for that length of time, we may as well enjoy the process don't you think? Key point: Enjoy your work, and life will be more fulfilling as a result, freeing up energy to spend doing what is most important. Stop making excuses Excuses such as, "I'm too busy", "I don't have enough time", "My boss gives me no choice", etc. get in the way of you having a balanced life. We can all make up excuses as to why we can't do or have something. These excuses, however, do not get you any

closer towards what you really want in life. The truth is, you make time for what you believe to be most important. For some, spending extra hours at work may seem absolutely necessary. This decision, like every choice we make, has consequences. These might include: spending less time with your children, spouse, friends and family or not getting to the gym and exercising. Going out on a corporate golf day and then working back to 10pm and not seeing your kids is a choice. Excuses do not change the choice that you made - but we often use them to justify our decision to escape the truth. Key point: Life is a series of choices - and good choices lead to balance and happiness. Remember that a little relaxation goes a long way Don't get overwhelmed by assuming that you need to make big changes to bring more balance to your life. Set realistic goals, like trying to leave the office earlier one night per week. "Slowly build more activities into your schedule that are important to you.

For employers Employers often complain that a work-life balance is not easy to apply. They argue that extra leave and flexible hours can incur higher costs. It's true that some people do not work well from home and may take advantage of flexible work practices. As an employer it's about being open to the possibility of change and willing to be flexible. You can always try change on a trial basis. As long as you give it an honest go. When detailing changes, provide boundaries for all employees so their expectations are the same as the organizations. Set goals and strategies to measure the effectiveness of changes. Improved employee health and staff retention means reduced absenteeism and quality staff. Higher morale and increased motivation results in better workplace cooperation and less stress. All these benefits lead to higher productivity for the company. For employees, the benefits include less stress, better health, greater job satisfaction, improved personal relationships, and the motivation to achieve outstanding results. Creative employers who are open to change are the businesses workers are flocking to.

Drop activities that sap your time or energy "Many people waste their time on activities or people that add no value -- for example, spending too much time at work with a colleague who is constantly venting and gossiping. You may even be able to leave work earlier if you make a conscious effort to limit the time you spend on the web and social media sites, making personal calls, or checking your bank balance. "We often get sucked into these habits that are making us much less efficient without realizing it. Key point: Prioritize your work schedule as well as other activities.

Rethink your errands Consider whether you can outsource any of your time-consuming household chores or errands.

These companies are already finding they have their pick of the high-quality employees. Such changes will take time. The attitudes people have towards hours worked versus working smarter are still sinking in for many of us.

2. Harvey A and A Mukhopadhyay (2007), When Twenty-Four Hours is Not Enough: Time Poverty of Working Parents, Social Indicators Research, 82, pp. 55-57. 3. Work Stress and Employee Health, Journal of Management, 17, pp. 235237. 4. Stephen R Covey and Chris McChesney, Stephen R. Covey's The 4 Disciplines of Execution: The Secret To Getting Things Done, On Time, With Excellence - Live Performance. 5. Stephen R Covey, 7 Habits of Highly Effective People Powerful Lessons in Personal Change. 6. David Clutterbuck, Managing Work-life Balance: A Guide for HR in Achieving organizational and Individual Change, pp. 133-134, 162. 7. OECD (2008) Economic Policy Reforms: Going for Growth 2008. 8. OECD (2011) Society at a Glance 2009. 9. OECD (2011) Doing Better for Families. 10. OECD (2011) Hows Measuring Well-Being. Life:

Conclusion The balance of work and non-work activities have changed considerably in recent decades, with overall gains in leisure and overall reductions in hours worked. These broad trends however, conceal an increased complexity in our lives, with both men and women taking on a wider variety of tasks in their workplace and at home. The distribution of tasks and work at home is still based on gender. Men work for longer hours of paid work and women spend longer hours in unpaid domestic work. As the famous quote states, God helps those who help themselves; one can manage their office life and personal life by managing their work according to a set schedule as explained in Coveys Four Quadrant Theory. Culture and policy makers can also help to address the issues by encouraging supportive and flexible working practices, and thereby making it easier for parents to strike a better balance between work and home life.

References 1. Definition of the European Foundation for the Improvement of living and Working Conditions (http://www.eurofound.europe.eu).

11. Tips for WLB (http://www.webmd.com/balance/gui de/5-strategies-for-life-balance). 12. CEO online: your business resource.

Essential Leadership Traits for Mangers Employed in Indian Banking Sector Dr. Samir Narkhede Faculty: Department of Management, North Maharashtra University, Jalgaon. Email: spn13371@gmail.com, Contact Number: 9371355377 & Prof. Shraddha Kulkarni Faculty: Indira School of Business Studies, Pune. Email: shraddha@indiraisbs.ac.in, Contact Number: 9822682244
Abstract Organizations need capable human resources and particularly for the key leadership positions the right choice is inevitable to have an age over the competitive world. Todays world is facing talent crisis. Its not that talented people dont exist but the issue is of matching the right competencies for performing the right job. In recent years, many organizations are experiencing talent insufficiencies within their workforce. Organizations are trying their best to have prominent system for identifying, selecting and developing key talent, however; human capital building for future is still an issue. Thats why it is necessary for the organizations to understand and identify the need of each sector and accordingly adopt the suitable leadership competencies. This conceptual paper is an attempt to understand the match between the profile of bank managers and leadership traits required for banking sector leaders. It also aims to understand whether those crucial leadership skills in todays banking organizations are sufficient for meeting current and future needs. Likewise, this paper provides recommendations for banking sector for seeking to assess and bridge the gap between where they are and where they need to be as they adjust and re-invent themselves in the coming years. Key-Words: Leadership traits, Banking Sector, competencies Introduction Organizations irrespective of the sectors need leaders who can effectively navigate complex, changing situations and get the job done. The questions that need to be asked at the organizational level are: what do they have, what do they need to do, and are they equipped to do it? The rumblings of talent deficiencies have grown louder and stronger. Companies have waged intense recruiting wars for talent, while debating the best systems for identifying, selecting and developing key talentand, still, arent sure they are building the capacity they need for the future. The pressure is felt by managers too. Many are spending time on talent issues and are increasingly being held accountable for the strength of their talent pools. Being specific, author in this paper has concentrated on the managers from Indian banking sector. As far as Indian banking sector is concerned, although economic and

operational decisions may be taking priority over talent development in the short-term, todays challenging times also underscore the importance of effective leadership. Layoffs, early retirements, and dramatically changing market realities are adding another layer of complexity to banking sectors understanding of what needs in terms of talent. This paper aims to explore the concern that leadership skills are lacking in banking sector managers. The study showed that crucial leadership skills in bank managers are, in fact, insufficient for meeting current and future needs. This paper also provides recommendations for bank managers seeking to assess and bridge the gap between where they are and where they need to be in future to accommodate with the ever changing scenario. The paper is aimed to address the following questions: What leadership skills and perspectives are critical for success now and in the future for bank managers? How strong are current bank managers in these critical skills and perspectives? How aligned is todays leadership strength with what will be the most important skills and perspectives in the future? Background: Sector Indian Banking

expanding profitability and productivity akin to banks in developed markets, lower incidence of nonperforming assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. The way forward for the Indian banks is to innovate to take advantage of the new business opportunities and at the same time ensure continuous assessment of risks. A rigorous evaluation of the health of commercial banks, recently undertaken by the *CFSA2also shows that the commercial banks are robust and versatile. The singlefactor stress tests undertaken by the CFSA divulge that the banking system can endure considerable shocks arising from large possible changes in credit quality, interest rate and liquidity conditions. These stress tests for credit, market and liquidity risk show that Indian banks are by and large resilient. Thus, it has become far more imperative to contemplate the role of the Banking Industry in fostering the long term growth of the economy. With the purview of economic stability and growth, greater attention is required on both political and regulatory commitment to long term development programs.

The General Profile of Bank Managers The role of the bank manager is multifaceted. Bank managers are responsible for the overall leadership, sales force, compliance, operation and financial goals of the branch they manage. Bank managers have to be sales oriented and familiar with all product lines that the bank offers. Most

*FICCI1 conducted a survey on the Indian Banking Industry in 2012 to assess the competitive advantage offered by the banking sector, as well as the policies and structures that are required to further the pace of growth. According the survey conducted, a progressively growing balance sheet, higher pace of credit expansion,

banks also require that their managers possess securities certification from state insurance licenses in order to supervise new and existing business acquisitions. 1. Sales Bank Manager is responsible for the success or failure of the overall goals for growth and acquisition of new business. They should be able to inspire and lead team based upon role model leadership, including the mentality of going the extra mile. They should also possess excellent communication skills since they will be responsible for representing the bank within the community by joining organizations such as the local Chamber of Commerce. It is their responsibility to ensure proper training and to create good sales budgets and plans that are monitored and acted upon. The overall environment that they create must be dynamic and conducive to sales and customer service orientation. 2. Customer Service The managers should be aware of all compliance and bank policy issues that affect the business of their clients and the bank. For example, if a customer has a complaint about the interest paid on his time deposit account, they must be familiar with the regulation entitled "Truth in Saving Act (*TISA3). Their knowledge of all bank procedures is important. 3. Administration Managers are responsible for ensuring the work- flow run smoothly and all positions are covered during vacation periods and lunch breaks. They are also responsible for the physical security and appearance of the facilities that the bank provides. They must be focused and aware of staff and team requirements such as performance

appraisals, training and quality control. Also, they must be able to delegate work to senior staff members who report directly to them in order to make sure that all work is performed on time such as the duties related to report generation. Whenever issues of controversy arise that involve staff or customer relationships, they should be able to effectively resolve or negotiate such issues and move ahead with the goals of the bank. 4. Providing Training Managers are responsible for coaching and encouraging staff to meet their targets such as signing customers up for credit cards or offering other services. The sales of the bank will reflect on the manager so it is in their interest to spur staff on to meet their targets. They also have to assist staff when dealing with complex queries from customers. This may include explaining mortgage terms or other details. 5. To select officers competent executive

It is a primary duty of a manager to plan for selection and appointment of executive officers who are qualified to administer the banks affairs effectively and soundly. It is also the responsibility of the manager to dispense with services of officers who prove unable to meet reasonable standards of executive ability and efficiency. 6. To effectively supervise the banks affairs Bank managers have to assure a soundly managed bank involves reasonable business judgment and competence, and sufficient time to become informed about the banks affairs. Managers cannot avoid responsibility for their banks sound management or its problems. If supervisory

negligence is involved, a managers responsibility may extend to personal financial responsibility. Managers have primary responsibility to maintain the bank and its policies on a sound and legal basis. 7. To adopt and follow sound policies and objectives Managers should provide a clear framework of objectives and policies within which the chief executive officer must operate and administer the banks affairs. Such objectives and policies should cover all areas. Some of the more important areas would be investments, loans, asset and liability management, profit planning and budgeting, capital planning and personnel policies. 8. To avoid unethical practices A banks manager bears a greater thannormal responsibility in dealing with the loans to members of the directorate. They must make decisions that preclude the possibility of partiality or favored treatment. Unwarranted loans to a banks manager or to their interests are a serious matter from the standpoint of credit and management. 9. Transactions involving conflicts of interest These always represent potentially selfserving transactions. When managers decisions involving a potential conflict of interest are made, the manager should fully disclose the manner in which the transaction tends to be beneficial and should abstain from voting on the matter. The abstention should be recorded in the minutes. He should be able to advise or represent the bank in an objective manner.

10. To keep the stakeholders informed about banks condition and management policies As part of a directors responsibility to be informed of the banks condition and management policies, the *OCC4 requires that all national banks, under a provision in their bylaws, provide for a directors examination. It is the responsibility of the manager to provide them with the correct and genuine information and records required. 11. To maintain capitalization reasonable

A manager should ensure the bank maintaining a well- capitalized basis. A discussion of capital planning and capital adequacy is included in Capital Accounts, and the examiner should be familiar with the information contained therein. 12. To observe banking laws, rules and regulations Managers must exercise care to see that banking laws are not violated and the rules and regulations are maintained at every level.

Essential Competencies for Bank Managers We have discussed about the primary profile of bank managers in the above section. Bank managers need different leadership traits and competence to perform all these functions. Fine-tuning or customizing competency model for managers in banks may be a needed and valuable task as banks build a leadership strategy and create development initiatives based on the model; however, the following 20 skills and perspectives have been identified through research documents

available; data in brackets indicates the profile to which competency is linked: 1. Balancing personal life and work balancing work priorities with personal life so that neither is neglected. (To avoid unethical practices) 2. Being a quick learner quickly learning new technical or business knowledge. (Sales, Customer Service, to effectively supervise the banks affairs, to adopt and follow sound policies and objectives and to observe banking laws, rules and regulations) 3. Building and mending relationships responding to co-workers and external parties diplomatically. (To keep the stakeholders informed about banks condition and management policies, transactions involving conflicts of interest, to effectively supervise the banks affairs, to select competent executive officers and Provide Training) 4. Compassion and sensitivity showing understanding of human needs. (To keep the stakeholders informed about banks condition and management policies and transactions involving conflicts of interest) 5. Composure remaining calm during difficult times. (Transactions involving conflicts of interest and to avoid unethical practices) 6. Confronting people acting resolutely when dealing with problems. (To adopt and follow sound policies and objectives, to effectively supervise the banks affairs, to select competent executive officers and to keep the stakeholders informed about banks condition and management policies) 7. Culturally adaptable adjusting to ethnic/regional expectations regarding Human Resource practices and effective

team process. ( To effectively supervise the banks affairs, to adopt and follow sound policies and administration) 8. Decisiveness preferring doing or acting over thinking about the situation.(To maintain reasonable capitalization) 9. Doing whatever it takes persevering under adverse conditions.( To avoid unethical practices, to maintain reasonable capitalization and to adopt and follow sound policies and objectives) 10. Employee development coaching and encouraging employees to develop in their career.(Providing Training) 11. Inspiring commitment recognizing and rewarding employees achievements. (To effectively supervise the banks affairs, to adopt and follow sound policies, to avoid unethical practices and administration) 12. Leading people directing and motivating people. (To effectively supervise the banks affairs) 13. Managing change using effective strategies to facilitate organizational change.(Sales and customer service) 14. Managing ones career using professional relationships (such as networking, coaching, and mentoring) to promote ones career. (To select competent executive officers and providing Training) 15. Participative management involving others (such as listening, communicating, informing) in critical initiatives. (Customer Service and to keep the stakeholders informed about banks condition and management policies) 16. Putting people at ease displaying warmth and using humor appropriately. (To keep the stakeholders informed about banks

condition and management policies and to avoid unethical practices and administration) 17. Resourcefulness working effectively with top management.(administration, To effectively supervise the banks affairs, to adopt and follow sound policies, to observe banking laws, rules and regulations and to maintain reasonable capitalization) 18. Respecting individuals differences effectively working with and treating people of varying backgrounds (culture, gender, age, educational background) and perspectives fairly.( To keep the stakeholders informed about banks condition and management policies and to avoid unethical practices) 19. Self-awareness recognizing personal limits and strengths.(general) 20. Strategic planning translating vision into realistic business strategies, including long-term objectives. (To effectively supervise the banks affairs and to maintain reasonable capitalization)

future skills leading people, strategic planning, inspiring commitment, and managing change are among the weakest competencies for todays leaders. The leadership gap, then, appears notably in high-priority, high-stakes areas. Other areas where there is a significant gap between the needed and existing skill levels are: employee development, balancing personal life and work and decisiveness. Conversely, many leaders strengths are not in areas that are most important for success. Banks report greater bench strength in areas of building and mending relationships, compassion and sensitivity, cultural adaptability, respecting individual differences, composure and self-awareness. A current deficit of needed leadership skills is a problem; a gap between current leadership bench strength and future leadership demands is a serious liability. The sooner banks can understand the reality of their leadership situation, the quicker they can move to adapt by re-focusing leadership development efforts and re-thinking recruitment priorities.

Gap Between Bank Managers Profile and Competencies Required In the above two sections researchers have discussed about the profile and competencies. After studying the available literature on the similar topics, the researcher has inferred that there is a gap between Bank Managers profile and the leadership traits that they posses. Either there is a gap or lack of some salient traits. Bank managers are not adequately prepared for the future. Todays leadership capacity is insufficient to meet future leadership requirements. The four most important

Measures: Bridging the Gap To increase leadership capacity, banks have to take both a strategic and a tactical approach. On the individual and tactical level, managers have to align the development experiences of managers with organizational objectives. Leaders who have good skills in directing and motivating people know how to interact with staff in ways that motivate them. They delegate to employees effectively, broaden employee opportunities, act with fairness toward direct

reports and hire talented people for their teams. To development the competencies among managers, banks have to take following measures: Communicate the specific behaviors and skills that are related to managing others well. Be sure managers know them and understand them in context of their roles. Assess leaders on the key behaviors and skills. Use consistent assessment practices; 360-degree leadership development assessment tools are often most detailed and helpful. Create training programs and developmental assignments. Arrange for training and facilitation by reputable leadership development organizations. Develop internal groups to share experiences. Use forums and discussion groups to share lessons learned and best practices related to handling teams. Foster a feedback environment. Develop mentoring programs and train management in ways to give feedback effectively. Share the strategy. Top management should communicate the strategy, as well as factors influencing the strategy, with management groups and others. Teach strategic skills. Arrange training in strategy development, change management and risk management. Involve bright, young managers in strategy development. Expose managers to needed skills. Rotate managers at regular intervals so that more managers are prepared for senior management positions.

Provide necessary learning, mentoring support and coaching. Managers who recognize and reward employees achievements are able to inspire commitment from their subordinates. Such managers publicly praise others for their performance, understand what motivates other people to perform at their best and provide tangible rewards for significant organizational achievements. Clarifying the vision. Describe how it connects with employees roles and talk about the responsibility each person has for realizing the organizations vision. Help managers effectively and consistently communicate a clear vision and direction. Encourage managers to expect high standards of performance and interpersonal competence. Conclusion Banking sector should give serious importance to development of right managerial competencies. In the absence of new investments in developing critical skills and perspectives, the leadership gap in this sector will continue to widen, particularly in country like India. For Indian banking sector, to prevent a system-wide leadership gap, they need to create a cohesive approach to leadership development. Unfortunately, as the existing literature suggests, the sector lacks a coherent sense of what needs to be developed and how to go about it. Banking sector as considered one of the most important sectors in the growth of the country has to try hard to bridge this gap and to build resilient human capital and develop a robust leadership pipeline from the future perspective.

Banking Terms*: FICCI1: Federation of Indian Chambers of Commerce and Industry(A national organization that represents and aggregates multiple Chambers of Commerce) CFSA2: Committee on Financial Sector Assessment (is an annual health check-up exercise undertaken by RBI) TISA3: Truth of Saving Act(establishes uniformity in the disclosure of terms and conditions regarding interest and fees when giving out information on or opening a new savings account) OCC4:Office of the Comptroller of the Currency(supervising the largest and most complex national banks)

Reference 13. Basel Committee on Banking Supervision (2011), Core Principles for Effective Banking Supervision, Consultative Document 14. Carl Wolf (2009) Functions of bank managers, eHow Contributor 15. Comptrollers Handbook (1998), Duties and Responsibilities of Directors 16. Dr. Deepti Bhargava (2010) Human Resource Practices in Public Sector and Private Sector Banks, IJBEMR Volume 1, Issue 2 (December, 2010) ISSN-2229-4848 17. Indian Banking System: The Current State and Road Ahead, Federation of Indian Chambers of Commerce and Industry (February 2010) 18. Jean B. Leslie(2009), The Leadership Gap, Center for Creative Leadership 19. Joseph Hughes and Loretta Mester(1994), Evidence on the

objectives of bank managers, Rodney White Center for financial Research 20. Khandelwal,A.K (2005). "Criticality of HR reforms for Public sector banks in the new era", Economic and political weekly, March 19 21. Kumar, S. (2004), "Training Initiatives in banks - Areas of concern." in Nagarajan, N.(Ed), Human Resource Management, Vo1.5, ICFAI University press, Hyderabad, 22. Mangaleswaran T and Srinivasan P T (2010), Human Resource Management Practices in Shrilankan and Indian Banks: An Empirical Comparison 23. Report of the Committee on HR Issues of PSBs (June 2012) 24. SujathaMellacheruvu and C. S. G Krishnamacharyulu (2008), Challenges of Human Resource Management in Public Sector Banks, JISM 8M (Jan. Mar. 2008)

Mobile Banking in India Financial Transformation: Practices, Challenges and Security Issues
Miss Vinita Ahire Assistant Professor,MIT School of Management, Pune. Email: vinitaahire@gmail.com INTRODUCTION Internet Banking they are waiting for their orders to come helped give the through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in these big Asian economies. According to the Cellular Operators' Association of India (COAI) the mobile subscriber base in India hit 40.6 million in the August 2009. In September 2010 it added about 1.85 million more. The explosion as most analysts say, is yet to come as India has about one of the biggest untapped markets. China, which already witnessed the mobile boom, is expected to have about 300 million mobile users by the end of 2011. All of these countries have seen gradual roll-out of mobile banking services, the most

customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and India. Mobile banking addresses this fundamental

limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. The main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere Anytime Banking'. Customers don't need access to a computer terminal to access their bank accounts, now the can do so on-the-go while waiting for the bus to work, travelling or when

aggressive being Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and

restaurants. MOBILE BANKING Mobile payment is an alternative payment method. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of

services and digital or hard goods. Mobile payment is being adopted all over the world in different ways. As smart phones get more widely used, we are seeing a real ramp-up of this sort of stuff now and it is starting to change quickly. MOBILE BANKING FACILITY Reserve Bank of India has given approval to 32 banks to provide mobile banking facility in the country. 21 banks have started providing these services. Mobile banking is a secure application, which takes care of end-to-end encryption of data in transit to offer banking information and transactions. Customer is forced to change the activation code and m-PIN sent to him at the time of registration. He is also driven to decide a password to log-in to the application. Customer also has a choice to change the m- PIN, log-in password at any point of time. Banks are now permitted to offer this service to their customers subject to a daily cap of both Rs.50, 000/ - per customer for funds transfer and transactions

Mobile banking offer services such as the following:Account information 1. Mini-statements and checking of

account history 2. Alerts on account activity or

passing of set thresholds 3. 4. 5. 6. 7. 8. 9. cheque 10. 11. 12. 13. Ordering cheque books Balance checking in the account Recent transactions Due date of payment (functionality Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / equity statements Insurance policy management Pension plan management Status on cheque, stop payment on

for stop, change and deleting of payments) 14. PIN provision, Change of PIN and

reminder over the Internet 15. Blocking of (lost, stolen) cards deposits, withdrawals, and

Payments, transfers 1.

involving purchase of goods/ services. Transactions up to Rs.1, 000/- can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions are addressed by the banks through adequate security measures. MOBILE BANKING SERVICES

Domestic and international fund

transfers 2. 3. 4. 5. 6. Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing Peer to Peer payments

FEATURES

&

BENEFITS

OF

the credit histories and spending patterns of the customer should not be openly available for public scrutiny. Mobile payments have to be as anonymous as cash transactions. Third, the system should be foolproof, resistant to attacks from hackers and terrorists. This may be provided using public key infrastructure security,

MOBILE BANKING A mobile payment service in order to become acceptable in the market as a mode of payment the following conditions have to be met: a) Simplicity and Usability: The mpayment application must be user friendly with little or no learning curve to the customer. The customer must also be able to personalize the application to suit his or her convenience. b) Universality: M-payments service must provide for transactions between one customer to another customer (C2C), or from a business to a customer (B2C) or between businesses (B2B). The coverage should include domestic, regional and global environments. Payments must be possible in terms of both low value micropayments and high value macro payments. c) Cost: The m-payments should not be costlier than existing payment mechanisms to the extent possible. M-payment solution should compete with other modes of payment in terms of cost and convenience. d) Security, Privacy and Trust: A customer must be able to trust a mobile payment application provider that his or her credit or debit card information may not be misused. Secondly, when these

biometrics and passwords integrated into the mobile payment solution architectures. e) Interoperability: Development should be based on standards and open technologies that allow one implemented system to interact with other systems. f) Speed: The speed at which m-payments are executed must be acceptable to customers and merchants. g) Cross border payments: To become widely accepted the m-payment

application must be available globally, world-wide.

ADVANTAGES BANKING

OF

MOBILE

A very effective way of improving customer service could be to inform customers better. Credit card fraud is one such area. A bank could, through the use of mobile technology, inform owners each time purchases above a certain value have been made on their

transactions become recorded customer privacy should not be lost in the sense that

card. This way the owner is always informed when their card is used, and how much money was taken for each transaction. Similarly, the bank could remind customers of outstanding Loan repayment dates, dates for the payment of monthly installments or simply tell them that a bill has been presented and is up for payment. The customers can then check their balance on the phone and authorize the required amounts for payment. The customers can also request for additional information. They can automatically view deposits and withdrawals as they occur and also pre- schedule payments to be made or cheques to be issued. Similarly, one could also request for services like stop cheque or issue of a cheque book over ones mobile phone. There are number of reasons that should persuade banks in favor of mobile phones. They are set to become a crucial part of the total banking services experience for the customers. Also, they have the potential to bring down costs for the bank itself. Through mobile messaging and other such

added services to the customer at marginal costs. Such messages also bear the virtue of being targeted and personal making the services offered more effective. They will also carry better results on account of better customer profiling. Yet another benefit is the

anywhere/anytime

characteristics

of mobile services. A mobile is almost always with the customer. As such it can be used over a vast geographical area. The customer does not have to visit the bank ATM or a branch to avail of the banks services. Research indicates that the number of footfalls at a banks branch has fallen down drastically after the installation of ATMs. As such with mobile services, a bank will need to hire even less employees as people will no longer need to visit bank branches occasions. With Indian telecom operators working on offering services like money transaction over a mobile, it may soon be possible for a bank to offer phone based credit systems. This will make credit cards apart from certain

interfaces, banks provide value

redundant and also aid in checking

credit offering

card

fraud

apart

from

customers have to bear the cost of mobile service providers. Banks have changed from paper-based banking solutions

enhanced

customer

convenience. The use of mobile technologies is thus a win-win proposition for both the banks and the banks customers. The banks add to this personalized communication through the process of automation. For instance, if the customer asks for his account or card balance after conducting a transaction, the installed software can send him an automated reply informing of the same. These automated replies thus save the bank the need to hire additional employees for servicing customer needs.

provider to the latest of the technologies like online-banking, mobile-banking, etc. Financial Services are generally complex and need a lot of trust for the consumer to use technology. It is surprising to know as to why most of the Indian customers have not welcomed across this the up gradation. even

Customers

world,

technologically optimists, have refrained from using technology aided solutions. There are many reasons why technology has not been able to ride the acceptance wave and cross the hurdle and become an acceptable feature in banking. As todays banking has redefined itself as customer centric, it becomes more important that the customer is happy with the services being

MOBILE BANKING IN INDIA In India, Banking sector has become more customers friendly to provide banking services through mobile phone. It has given an opportunity to customers to update them self about Account balance, transactions and do the transfer of amount from one Account to another. All the public and private sector banks in India have started providing their different services through mobile phone. Currently they are offering banking services through mobile free of cost (except some bank) but

provided. Unfortunately, the acceptance and adoption rates are very low even in the case of educated customers. The paper looks at various factors which explain why consumers are not using mobile banking and other technologies in banking. It would also try to suggest why people are not currently using mobile banking and try to suggest how to overcome this problem and increase the acceptance levels.

METHODOLOGY

(A) PRIMARY DATA The data for the research is extracted from a survey conducted in Pune., India. A total of 100 respondents participated in the research of Mobile banking. The demographic profile of

In order to identify the top and least five perceived items in

Characteristic Frequency Percentage Gender Male Female Age <20 MaleFemale20-29 MaleFemale69 21 69 21 0 0 0 0 65 35 65 35

respondents in each research is shown in Table and chart. The data collected through this method was adequate enough to make

projections in the research.

TABLE 1: DEMOGRAPHIC PROFILE OF RESPONDENTS Income (Monthly) <Rs. 25,000 >=Rs.35,000 Missing

65 23 12

65 23 12

30-39 MaleFemale40-49 MaleFemale>50 0 0 0 0 5 5 5 5

(A) SECONDARY DATA Articles have been sourced from magazines and journals dealing with current issues in mobile banking adoption. Internet & Text books related to Mobile Banking & Research Methodology have been a major secondary source for the extraction of the experts opinion.

affecting the adoption intention of Mobile banking, the percentage

FACTORS MOBILE ADOPTION

THAT

AFFECT BANKING

score of the respondents was computed. Table provides the result.

TABLE: 2 MOST AND LEAST PERCEIVED MOBILE ADOPTION FACTORS IN

BANKING

Items

Percentage Using Banking Population (%)

of Mobile

would allow me to manage my finances more efficiently? 8. Mobile banking would be complex to use? 9. I would use Mobile banking if Mobile banking increased my status? 10. Mobile banking would require a lot of mental effort?

60

71

63

1. I would use Mobile banking if I could use it on a trial basis first to see what it can offer 2. I would use Mobile banking if I could see a trial demo first? 3. I would use Mobile banking if I could test Mobile banking first? 4. I would use or be more likely to use Mobile banking if Mobile banking was compatible with my lifestyle? 5. I would use or be more likely to use Mobile banking if using my Mobile to conduct banking transactions fits into my working style? 6. Mobile banking is a risky mode of banking to use? 7. Mobile banking

81 The findings in table indicate that adoption of 76 Mobile Banking by its appears trialibility the to be and least

influenced compatibility.

Regarding

perceived items that affect mobile banking 75 adoption, these seem to be related to complexity, and relative advantage and perceived risk of Mobile Banking are perceived as factors least affecting its adoption. 45

35

TABLE 3: SHOWS THE INTENTION TO ADOPT THE MOBILE BANKING 54 AND THE FACTORS TO ADOPT THAT AFFECT SUCH INTENTION 44

Compactibility Trial Ability Risk

46% 59% 64%

FACTOR

3:

INABILITY

TO

PROVIDE KNOWLEDGE This is another crucial factor, which is reflection of variations. The statements of insufficient guidance is there for using Complexity Adoption Intent 49% 40% mobile banking and its use is complicated which reflects that consumer behavior tends to be based on how a given problem is to be solved. In this research, the nonadopters of mobile banking are afraid of FACTOR 1: ACCESS PROBLEMS It is the most important factor, Accessing Problem statements such as `Possibility of error is higher than Internet Banking, Using key code list with mobile phone is complicated and Mobile phone is an unpractical device for banking emerges with good positive correlations. The great influence on the adopters not to have mobile banking services. FACTOR 2: DISSATISFACTION Four variables load on to this factor. `Dissatisfaction' is the second significant factor, which accounts of the variations. The statements `Data transmission is very slow , Mobile banking services are risky and not secure, Mobile banking services are not enough versatile and Its use has been a disappointment by others signify that the non-adopters have seen the dissatisfaction among the users of mobile banking services. DISCUSSIONS RECOMMENDATIONS Majority customers perceived privacy and security a critical issue. Here banks are advised to educate customers on this issue to raise their awareness. Especially for the customers worries like losing money if once mobile handset is lost (substantial number of respondents worried about it). Secondly banks and telecom operators are suggested to Draft comprehensive joint policy regarding security & privacy so that customers can be assured at both banks and telecom operators levels while doing mobile banking. Standardization is another major issue as lack of Standardization of mobile banking AND being the usage of new technology due to the complications in the systems and, moreover, no proper guidance is provided to them.

services in the country resulted in increased complexity while using mobile banking services (especially when using mobile banking services of multiple banks). For resolving this issue banks are advised to developed mobile banking standards in guidance of RBI.

Mobile_banking_M-commerce_15.03.pdf, 2010. 2.Muhammad Bilal, Ganesh Sankar, Trust & Security issues in Mobile banking and its effect on Customers, School of Computing, Blekinge Institute of Technology, SE-371 79 Karlskrona Sweden, 2011. 3. P. Soni, M-Payment Between Banks Using SMS [Point of View], Proceedings of the IEEE, vol. 98, pp.903-905. 2010. 4.Prerna Sharma Bamoriya & Preeti Singh, Issues & Challenges in Mobile Banking in India: A CustomersPerspective, Research Journal of Finance &Accounting,Vol.2,No.2, 2011. 5.Palisade, http://palisade.plynt.com / issues /2007May / mobile-banking / ,MAY, 2007. 6. T. Holz, M.Engelberth, F. Freiling, Learning More about the Underground Economy, ESORICS 2009,LNCS 5789, pp. 118, 2009 7. S. Wijetunge, P. Wijesinghe, and U. Gunawardana, Social Impact of SMS in Sri Lanka, Information andAutomation for Sustainability, 2008. ICIAFS 2008. 4thnternational Conference on, pp. 346350, 2008. 8.Rao, G. R. & Prathima, K., Online banking in India, Mondaq Business Briefing, 11 April 2003. Sharma, Prerna & Singh, Preeti, Users perception about mobile banking- with special reference to Indore & around, Review of Business & Technology Research, Vol. 2, 1, pp. 1-5, 2009. 9. S. Alam, H. Kabir, M. Sakib, A. Sazzad, C. Shahnaz, and S. Fattah, A secured electronic transactionscheme for mobile banking Bangladesh incorporating digital watermarking, Information Theory and

CONCLUSION It is well recognized that mobile phones have immense potential of conducting financial transactions thus leading the financial growth with lot of convenience and much reduced cost. For inclusive growth, the benefits of mobile banking should reach to the common man at the remotest locations in the country. For this all stakeholders like Regulators, Govt, telecom service providers and mobile device manufactures need to make efforts so that penetration of mobile banking reaches from high-end to low-end users and from metros to the middle towns and rural areas. Inclusion of non-banking population in financial main stream will benefit all. There is also need to generate awareness about the mobile banking so that more and more people use it for their benefit.

REFRENCES 1. Banzal S. Mobile Banking & M Commerce and Related issues, www. public.webfoundation.org/.... / 25,

Information Security (ICITIS), 2010 IEEE International Conference on, pp. 98-102, 2010. 10. S. Hung,C. Ku, and C. Chang, Critical factors of WAP services adoption: an empirical study, ElectronicCommerce Research and Applications, vol. 2, Spring. pp. 42-60, 2003.

Author: Miss Vinita Ahire Assistant Professor MIT School of Management, Pune. Email: vinitaahire@gmail.com Add. Sr. No. 124, Paud Road, Kothrud, Pune Cell No. +91 8796075753

A study of ERP system & its implementation issues in Higher Educational Institutions
* Mr. Abhijeet R. Thakur HOD & Assistant Professor (MCA), MGM Institute of Management,N-6, CIDCO, Aurangabad

Abstract Having software systems for college management is not just about recording of data; there are some other underlying benefits, as well. Firstly, it would be relevant to mention that every educational institution is not charitable, and the management has to account for productivity, profit and performance. ERP software enables management to have a clean system for administration and saves almost 60 to 70% of the regular management costs. The work of every section and department is carried on a computer based mode, which allows easy compilation of data. The concerned branches of management can use the information via secure connections through LAN and can generate real time reports for accounting and payroll. The tracing of transaction logs and coordination between student modules and admin modules become simpler. From the inventory department to the examination section, everything can be collaborated under one master system. Can ERP software benefit students? ERP is the essence of every business and organization and investing in software that offers combined solutions is an exceptionally smart concept. It will channelize the work of college management system and will induce an element of transparency in the entire arrangement. Also, for regulatory bodies and auditors, the system will act as a gateway to the performance of the institution and will offer better insight on the efficiency of the admin department. Keywords: Enterprise Resource Planning (ERP), PLM, SCM, BI

What is an ERP? ERP integrates the information system of an organization and automates most of the functions. The activities supported by ERP system include all core functions of an organization, including financial management, human resource management, and operations. Increasingly, ERP vendors are offering bolt-on products, such as business Intelligence (BI), Product Life Cycle Management (PLM), Customer Relationship Management (CRM), Supply Chain Management (SCM) etc.

Need Assessment

Phased Implementation

Software/vendor selection

Training Customization

Process Reengineering &

Pilot implementation

Figure 1: ERP Project Implementation Figure 1 shows the sequence of events in an ERP project. It usually starts with a needs

assessment and requirements analysis, and ends in the first cycle with training and a phased implementation. The continuous circle of development shown in Figure 1 suggests that soon after completion of the first phase or cycle of an ERP project, were back to planning the next phase. Each successive round of development arises from the need to add functionality and the rapidity of upgrades to ERP software. Benefits of ERP Systems Many reasons prompt people to start an ERP project. First lets consider the main benefits of an ERP system: Access to accurate information at the finger tips Enhances workflow, increases efficiency, and reduces paper work Tightens controls over day to day operations Provides e-mail/SMS alerts Provides user-friendly Interfaces Establishes a foundation for new systems and integrates existing systems

ERP in higher education: Higher educational institutes are now offering diversified courses and enrolling students to these courses. To manage the courses and flood of students, ERP is a best solution. Now universities and institutes are spending adequate amount money in implementing ERP. Followings are the main reasons to implement ERP in higher education Monitoring day to day activities like attendance, syllabus coverage etc Tracking performance of the students & faculties Huge amount of internal & external reporting Customized reports Monitoring administrative activities

ERP implementation process: The planning and preparation process consumes a significant portion of time in an ERP project. Just as a woodcutter will often spend one third of his time sharpening the axe before he starts chopping wood, preparation for the ERP project makes the job go more smoothly and quickly. One of the first steps involves evaluating the needs and requirements that will drive the implementation of an ERP system. The higher educational institutes running with lots of processes like finance, student, human capital, inventory etc. To implement an ERP system for these processes, it is very important to its working. Once the requirements are identified, the next step is to identify solutions to these requirements. For example, some solutions are more flexible and can accommodate a wider range of best practice models. Other systems have less flexibility and will require custom modifications to make changes. ERP

A main advantage of ERP systems is improved access to accurate and timely information. As directors, chief financial officers, or management attempt to understand an institutes overall performance with existing systems, they may find many different versions of the truth. An ERP system creates a single version of the truth because everyone uses the same system. ERP systems often improve upon this process by offering a strong foundation for moving to a data warehouse that can provide even more capability to extract data from administrative information systems.

solutions today often have a spearhead application some are better at finance, others at human resources, and still others at student applications. One option is to integrate best-of-breed elements from different vendors; another is to pursue an integrated solution from a single vendor. While an integrated system might not provide the best available solution in all cases, the advantages may compensate the benefits of best of breed. Integrated solutions often leverage the advantages of having an integrated store of data. The challenge in this rapidly changing environment with its frequent new releases is to ensure that the different systems work well together. Over time, the differences between ERP systems have become less pronounced, and multiple vendors now offer integrated solutions. Also, dont underestimate the time saved in dealing with only one vendor versus the burden of maintaining relationships and communications with multiple companies. Finally, your ERP implementation plan must either follow a phased implementation or attempt the big bang approach. A phased implementation usually the wisest and most cautious course takes longer and can incur higher consulting costs. Implementation issues: Finding right vendor Many institutions will embark on an ERP project with one main vendor because of the advantages of having one medium for communication. This prime contractor often subcontracts out other work and services as needed. This might create problem in understanding the requirement and finding out the best solution. Customizations constraint One of the biggest problems in ERP project implementations arises when the institution

attempts to customize the new system to fit every existing business practice. Most state-of-the-art ERPs are based on best and current business practices. Existing institutional business practices often have evolved over many years, becoming outdated and unclear. When faced with a choice, many institutions choose to adapt the new system to the old business practices. The resulting modifications add a huge cost to the project and continue an outdated way of doing business. Take the opportunity to reevaluate business practices and workflow processes, possibly incorporating those suggested by the new ERP system. This isnt an easy or quick task. In addition to avoiding the danger of mushrooming customizations, clearly delineate and effectively limit the scope of your project. As the project progresses, members of the campus community will see critical functionality that needs to be added and will lobby hard for additions to the original scope. Even worse is the scenario where customizations quietly happen behind the scenes and without the project managers knowledge. Awareness of staff Dont assume its possible for someone to do everything they did before the ERP started and also serve as an important agent on the ERP project. Be realistic about needs, both on the ERP project and back in the functional unit. For that awareness among the staff must be created. Training Seriously consider the type and timing of training. The traditional form of training, where a person goes for days at a time and doesnt interact with the system for months, doesnt work. Recruiting and retaining staff Once you train people on an ERP system, they become more marketable. Youll need to take into account the difficulty of

recruiting key personnel and get started early. Assigning Responsibility Whos going to maintain interfaces in the new ERP environment? Whos responsible for checking the data prior to it being shipped to the ERP system? Youll probably want to accept only clean data into your ERP system, and this places an extra burden on departments with interfaces to the ERP system to provide clean data. Most departments dont have the depth of staff to support their interfaces and clean up data, and have historically relied on the IS department to clean up data once in the system not a good practice. So, as you push responsibility back to departments, be sure they can handle it. Managing & tracking the change Adopt a formalized process and system for logging change requests and any problems encountered with the system during the development and production phases. After completion of change, you need to put a freeze on change. Upgrading existing legacy system Some ERP systems may require upgrading many of your existing legacy PCs. So make some early decisions and announcements on whos responsible for upgrading systems. Lack of support from senior staff This will lead to unnecessary frustrations in work place. Also, it will cause delay in operations and ineffective decisions. So, it is essential to ensure that the senior staff supports the transformation.

Compatibility issues with ERP module integration This is always a big concern when any organization implements different modules of different vendors.
Conclusion

The ERP space in higher education is moving rapidly. Vendors that hadnt spent much time trying to understand the needs of higher education are doing much better now. As a result of the growing competition, vendors are rolling out integrated suites of software that support the client, Web interface and object-oriented systems. Frequent new versions make it challenging to keep up with the ERP project that never seems to end. As soon as you finish the implementation, you jump into the next major upgrade. User groups are growing in importance because they can help influence vendors to become more sensitive to the needs of higher education. References [1] Alexis Leon,ERP Demystified, TataMcgrawHill Publication, 2e, Aug-2007 [2] Edward E. Watson and Helmut Schneider, Using ERP Systems in education [3]Clewett, A., D. Franklin, & A. McCown (1998) Network Resource Planning for SAP R/3, BAAN IV, and PeopleSoft A Guide to Planning Enterprise Applications, New York: NY: McGraw-Hill.

Issues & Challenges in the Banking Sector in India

Mrs.Neetal Vyas Asst. Prof., Indyana Global Rasta Peth, Pune-11The world has changed permanently, as to how banks will be allowed to operate in future. There is growing optimism that the world economy and the banking industry are recovering from the impact of the financial crisis. The objective of this paper is to offer an overall view of the banking industry, to discuss about the future of banking, and in particular to focus on issues and challenges ahead. INDIA IN THE GLOBAL CONTEXT: The financial services sector is emerging from the worst financial crisis for 80 years. Tighter regulation, an overhang of debt and the immense growth in the power of banks in emerging economies will transform the landscape of banking. Every time there is a major financial crisis anywhere in the world, there is need to take brace position. And, in turn, the rise and fall of Indias growth rate has an impact on global growth and there is need for India to take this responsibility seriously. The dream of all central banks is to see the various segments of financial markets working in a smooth and well-coordinated manner. ISSUES AND CHALLENGES AHEAD Banks and financial markets have undergone a fundamental shift in the recent times banks have become intricately linked to financial markets and hence more vulnerable to financial markets stress. Regulation will become an issue in the emerging markets just as it is in the more established western markets and may result in a return to more traditional business models. Regulatory environment will differ greatly from one country to the next. Financial Inclusion One of the Core issues for the Indian banking system Liquidity Management-Banks & Financial Institutions are destined to be facing the unpredictability they like to believe as non-existent. Liquidity crises, although recurrent, are yet to be effectively managed.

Many such challenges would be discussed in the paper Key Words: Issues and Challenges, Financial Inclusion, Regulations, Liquidity Management. The financial system is the lifeline of any economy. India is now on the global scene. The banking and the financial world has changed significantly over these decades. Following the East Asian crisis of the late 1990s, and the 21st century onwards there was no looking back. Indias exports began to climb, its foreign exchange reserves, rose exponentially after the economic reforms and in little more than a decade had raised to 300 billion dollars. The globalization of India has given rise to new opportunities but it has also brought with it new challenges and responsibilities. It means that the global economy can no longer be viewed from a spectators standpoint. Every time there is a major financial crisis anywhere in the world, there is need to take brace position. And, in turn, the rise and fall of Indias growth rate has an impact on global growth and there is need for India to take his responsibility seriously. The health of the financial sector is of special importance to the real economy, as the sector is at the heart of every wellfunctioning market system. Banks and other financial intermediaries perform intermediation functions that are critical to the real economy. These functions

facilitate and contribute to economic growth. The broadening of economic growth and the benign inflationary environment, notwithstanding the recent spike in oil prices has, in turn, improved financial stability and created a more favourable environment for financial markets. The spread on emerging market bonds continues to remain at low levels, the appetite for new emerging market issuance has strengthened and markets are differentiating increasingly based on fundamentals. Thus, the overall funding conditions for capital markets remain favorable. Introduction: The term paradigm shift is now being applied to the financial sectors. Banking sector which used to practice the traditional method of operations have drastically changed post 1990.Business of banking prior to liberalization had too much difficult to extend its business of financial lending to the wide base of customers. Post liberalization, the concept of banking underwent a drastic change in its operations and also in its approach, the functions of banks were redefined and it became more and more customer centric. Issues & Challenges Ahead for the Banking World:

Credit Risk Credit risk is defined as the probability that a bank borrower will fail to meet its obligations in accordance with the agreed terms. The management of credit risk is a critical component of a comprehensive approach to risk management. Credit Risk management can be done by bank by taking care of the following parameters: Credit risk inherent in the portfolio Risk in individual credits Market Risk Market Risk in simple means the possibility of loss to bank caused by the changes in market variables. Market variables are interest rates, foreign exchange, prices of equity and commodity. This risk is something which is caused or influenced by external factors for which the Banks dont have control.

Liquidity Risk Liquidity is a banks ability to generate cash quickly and at reasonable cost. Liquidity risk is the risk that the bank may not be able to fund increases in the assets or meet liability obligations. Liquidity problems may have adverse impact on the banks earnings and capital. Interest Rate Risk Interest rate risk is the exposure of a banks financial condition to adverse movements in interest rates. Excessive interest rate risk could lead to substantial volatility in earnings and thus affect the underlying value of banks assets, liabilities and off balance sheet instruments.

1. RISK MANAGEMENT All banks and financial institutions will now have to undertake a profound revision of their approach towards Risk Management. It does not apply that they should scale down their risk appetite, which is essential for future progress and survival in this competitive environment.

Exchange Risk This is a risk caused due to potential loss in exchange rates. Such risk can be managed by going for future contracts and

agreeing for a limit based rates. Policy with respect to exchange rates should be clear cut and out of the market experience and economic situation exchange rates should be agreed at time of setting terms. 2. Regulatory Framework: The constant evolution of local and international regulations is a major driving force in the banking and securities industry. There are various problems associated with regulatory forbearance. Deficiencies have been observed in the oversight of country risk, issues of connected lending and corporate governance practices. Deficiencies in respect of the design/implementation of consolidated supervision. With regard to financial integrity and development of safety net, the observed deficiencies mainly relate to timeliness of disclosure, protection of minority shareholders, accounting and auditing procedures and procedures for orderly winding up of failed insurers and securities firms. Inadequate framework for harmonizing cross-border regulatory cooperation given the growing cross-sectoral and crossborder linkages in the financial sector has posed risk-assessment problems, creating arbitraging opportunities.

developing an internationally competitive and sound domestic banking system, the deepening and broadening of prudential norms has been the core of the approach to financial sector reforms. The calibration of the convergence with international standards is conditioned by the specific realities of the domestic situation.

4. Structure: Ownership structure of banks for financial stability arises in the context of the concentrated shareholding in banks controlling huge public funds, and the risk of concentration of ownership leading to potential problems of moral hazard and linkages of owners with businesses. In order to promote diversified ownership of private sector banks, guidelines were issued by the Reserve Bank in February 2004 in regard to acquisition / transfer of shares of a private sector bank which would take the aggregate shareholding of an individual or a group to equivalent of five percent or more of the paid up capital of the bank.

5. Management of NonPerforming Assets (NPAs): The problem of non-performing assets has shaken the entire Indian banking sector. The main reason of high percentage of NPAs is the target-oriented approach, which deteriorates the qualitative aspect of lending. NPAs put detrimental impact on the profitability, capital adequacy ratio and credibility of banks. NPAs has been a major factor in the erosion of profitability of public sector banks in India resent level of NPAs was considered as a very big problem for the banks and needs immediate steps to be taken to check it. Reduce the earning capacity of assets and badly affect the ROA.

3. Abiding by the Norms: In India the measure challenge for the banks and financial industries is abiding by the norms such as maintaining the capital adequacy ratio, income recognition, asset classification and provisioning, exposure norms, disclosures, investment and risk management as well as assetliability management aimed at imparting strength to the banking system as well as ensuring safety and soundness through greater transparency, accountability and credibility. In keeping with the vision of

NPAs adversely affect capital adequacy ratio and profitability. Increase in the Cost of Capital NPAs causes to decrease the value of share sometimes even below their book value in the capital market. Causes reduction in availability of funds for further credit expansion due to the unproductiveness of the existing portfolio.

6. Transparency & Disclosures: The need of transparency so far was felt in the context of public authorities. But today the need for transparency in private sector is also now equally felt as they also deal with large volume of public money. The range of disclosures have gradually been expanded over the years and presently includes a host of indicators relating to capital adequacy ,Government shareholding, NPAs, exposure to sensitive sectors (capital market, real estate and commodities), movements in provisions for NPAs and investments as also information on corporate debt restructuring. Disclosure and transparency are at a premium for good banking corporate governance. Most banks in the MENA (77%) report in accordance with International Financial Reporting Standards (IFRS) as this is required by most central banks, however the region would benefit from more financial and non-financial disclosure, especially on risk-related matters. Less than 30% of MENA banks provide information on their foreseeable risks on their websites. Boards need to be encouraged to discuss and disclose what they consider their risks to be as well as their approach to monitoring and managing those risks.

The need of hour is providing affording and cost effective banking services to the masses through multi-delivery channels. Apart from traditional business, banks now-a-days provide a wide range of services to satisfy the financial and nonfinancial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. The key enabling factor has been the adoption of technology. Banking industry is fast growing with the use of technology in the form of ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years. The internet banking is changing the banking industry and is having the major effects on banking relationship. Retail banking in India is maturing with time; several products, which further could be customized, are in the retails segments of housing loan, personal loan, education loan, vehicle loan, etc. Being convinced that technology is the key for improving in productivity, the Reserve Bank took several initiatives to popularize usage of technology by banks in India. Periodically, almost once in five years since the early 1980s, the Reserve Bank appointed Committees and Working Groups to deliberate on and recommend the appropriate use of technology by banks given the circumstances and the need. 8. Banks and Governance: Corporate

7. Financial Inclusion through Leveraging Technology

Banks in India like corporate are as much required to be governed under corporate governance norms like any other firms. Banking and financial institutions stand to benefit only if corporate governance is accepted universally by industry and business .Realizing the importance of corporate governance to banks which are highly leveraged entities whose failures

would pose large risks to the entire economic system.

9. Operational challenges Constantly improving operational efficiency has to be high on the agenda of bankers and financial service providers. They have to optimize their processes, control their cost structure, and explore new operating models using all the tools now at their disposal. Analyzing the opportunity to mutualise operations or IT systems across entities or geographies, outsourcing non core activities, improving risk management frameworks and tools, these are some of the areas where financial institutions can find the levers to reach excellence.

produce professionals having the desired expertise for specialized banking like Treasury functions, SME financing and Islamic Banking etc. This is the need of the hour that they should develop their own Human Resources. 2. Anti-Money Laundering: The estimated amount of money laundered globally in one year is 2-5 percent of the global GDP. Increasingly, the financial services industry is looking at anti money laundering compliance as a key concern area with it figuring as an important point of discussion .The misuse of banking industry has been observed in recent years. These include the use of banking services for activities like, terrorist financing, drug trafficking and money laundering. In few countries although there is a comprehensive legislative systems and well defined enforcement mechanism, but there are a number of countries where the entire regulatory framework is at initial stage. In such countries, banking institutions are exposed to adverse consequences of these activities in the form of reputational, operational, legal and concentration risks. For instance, the institutions have to pay the investigations or the penalty charges, decline in the stock value, assets seizures, temporary termination of correspondent banking facilities, etc. the tackling of this issue requires a coordinated effort of the banking institutions, regulators, law enforcement agencies, etc. In this regard, SBP has already taken some viable steps to prevent the use of banking institutions for illegal activities. 3. Technological Up gradation

10. Customer satisfaction: The new rules of competition require recognition of importance of consumers and the necessity to address the needs through innovative products supported by new and upgraded technologies. Banks as well as the financial institutions face a big challenge as they have now to focus on improved Customer satisfaction by providing them optimized services at minimum cost. They have to continuously come up with innovative customized products according to their requirement to maintain their relationship with the customers and thereby increasing the business.

1. Human Resource Development: Today Human resources are as important as financial resources to any organization. The Banks and the financial service providers need to develop their human resources for future challenges and

Technology has thrown new challenges in the banking and the financial sector and new issues have started cropping up which is going to pose certain problems in the very near future. Its a challenge. In an

environment of large-scale use of technology, an effective security policy covering physical and other aspects has assumed greater importance. Commercial Banks in India need to initiate an appropriate security policy to ensure adequate and effective safety. RBIs Financial Sector Technology Vision Document focuses on four major areas, viz. I.T. for regulation and supervision, I.T. and Institute for Development and Research in Banking Technology, I.T. for Government related functions. The future computerization in banks should aim at strengthening the payment system, bring out new products and services and facilitate move towards fool-proof risk hedging techniques. Conclusion: Steps taken by RBI to keep these issues and challenges in control: Implementation of Basel III Capital Regulations In December 2010, the Basel Committee on Banking Supervision (BCBS) issued Basel III capital regulations as a response to the lessons learnt from the financial crisis. Accordingly, the Reserve Bank issued final guidelines on the capital regulations on May 2, 2012 after due consideration of the comments / suggestions received from various stakeholders on the draft guidelines. These guidelines would become operational from January 1, 2013. However, the minimum capital requirement including capital conservation buffers will be introduced in a phased manner and will be fully implemented by March 31, 2018. Under Basel III, total capital of a bank in India must be at least 9 per cent of risk weighted assets (RWAs) (the BCBS requirement is minimum 8 per cent of RWAs). Tier 1 capital must be at least 7 per cent of RWAs (6 per cent as specified by the BCBS); and Common Equity Tier 1

(CET1) capital must be at least 5.5 per cent of RWAs (4.5 per cent as specified by BCBS). Due to the transitional arrangements the capital requirements of banks may be lower during the initial periods and higher during later years. Therefore, banks have been advised to do their capital planning accordingly. In addition to the minimum requirements as indicated above, a capital conservation buffer (CCB) in the form of common equity of 2.5 per cent of RWAs is required to be maintained by banks. Total capital with CCB will be 11.5 per cent (9 per cent CRAR+2.5 per cent CCB) of RWAs. Under the Basel III rules, total capital with CCB has been fixed at 10.5 per cent (8 per cent CRAR +2.5 per cent CCB). Under Basel III, a simple, transparent, non risk based leverage ratio has been introduced. The Basel Committee will test a minimum Tier 1 leverage ratio of 3 per cent during the parallel run period from January 1, 2013 to January 1, 2017. Reserve Bank has prescribed that during this parallel run period, banks should strive to maintain their existing level of leverage ratio but, in no case the leverage ratio should fall below 4.5 per cent. Banks having leverage below 4.5 per cent should strive to achieve the target as early as possible. Dynamic Provisioning Guidelines At present, banks generally make two types of provisions viz., general provisions on standard assets and specific provisions on non-performing assets (NPAs). Since the level of NPAs varies through the economic cycle, the resultant level of specific provisions also behaves cyclically. Consequently, lower provisioning during upturns, and higher provisions during downturns have procyclical effect on the real economy.

The Dynamic Provisioning (DP) framework is based on the concept of expected loss (EL). The average level of losses a bank can reasonably expect to experience is referred to as EL and is the cost of doing business. The parameters of the model are calibrated based on data of Indian Banks. Banks having capability to calibrate their own parameters may, with the prior approval of Reserve Bank, introduce DP framework using the theoretical model indicated by Reserve Bank. Other banks would have to use the standardized calibration arrived at by the Reserve Bank Financial Intelligence Unit: It is an independent body which directly reports to the Intelligence Council. The received information is disseminated to the appropriate authoririties, to support antimoney laundering efforts. FIU-IND is also responsible for coordinating and strengthening efforts of national and international intelligence and enforcement agencies in pursuing the global efforts against money laundering and related crimes. FIU-IND is not a regulatory authority. Its prime responsibility is to gather and share financial intelligence in close cooperation with the regulatory authorities including Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA). These are few of the measures to curb malpractices and control the risk which banks have to face which would help the Banking industry to face such challenges

and survive environment.

in

this

competitive

References: 1). Kohli, S. S. (2001). Indian Banking Industry: Emerging Challenge. IBA Bulletin, 23(3): 48-54. 2). Mohan, R. (2003). Transforming Indian Banking: In Search of a Better Tomorrow. IBA Bulletin, 25(3):33-40. 3). Reserve Bank of India (1991) Report of the Committee on the Financial System (Chairman Shri M.Narasimham) 4). Reserve Bank of India, Annual Report, various years. 5) Reserve Bank of India, The Report on Currency and Finance, variousyears. Shrieves, R. E. The relationship between risk and capital in commercial banks. 6) Journal of Banking & Finance, 16(2), 1992. Dev, S. M. Financial Inclusion: Issues and Challenges. Economic & Political Weekly,41(41): 2006.

ANALYSIS OF THE IMPACT OF RETAIL LOAN FACTORIES ON THE GROWTH OF BANK OF BARODA'S RETAIL LOAN PORTFOLIO

Presented by: Prof. Abhinav Jog Associate Professor, Indira School of Business Studies, Pune abhinav.jog@indiraisbs.ac.in Prof Zohra Z. Sabunwala Assistant Professor Indira School of Business Studies, Pune zohra.zabeen@indiraisbs.ac.in

Abstract
This research paper seeks to assess the impact of the retail loan factories set up by Bank of Baroda(BOB) on the growth of its retail loan portfolio. The research methodology relies upon collection and analysis of secondary data. A study was also carried out to find out the demographic profile of the customers availing retail loan products of BOB and the factors influencing their decision in choosing the bank. The results and findings show that there has been a significant growth in banks total retail loan book since the inception of Retail Loan Factories. There is still a large untapped market potential for retail credit. The findings would be useful in evolving appropriate strategies to enhance market share in retail credit.

Keywords
Retail Banking,Retail loan Factories, Non Performing Assets ( NPAs),Turn Around Time (TAT)

1.1 Introduction

Indian economy is expected to among the fastest growing economies in the world.The financial services sector is expected to be a lynchpin of this growth along with the retail, information technology and telecom industries. Within the financial services sector, the market for banking products is growing at a rapid pace. Retail banking in particular has experienced an unprecedented boom, with growth rates touching 33% in the last five years and are expected to continue at 28%. Despite the scorching pace of growth, there is still a large untapped potential. Retail lending constitutes just 12.36% of the Indian banking system. Given this macroeconomic scenario, the share of retail banking will grow dramatically and it is expected that about 35% of the incremental growth in net credit will come from retail banking. This requires expansion and diversification of retail banking product portfolio, better penetration and faster service mechanism. Hitherto, the growth had come from metros and Tier I cities. While the loan requirement from larger cities will continue to grow, explosive growth in credit is expected to be registered in tier II cities, semi-urban and rural areas. In order to meet the above need, Bank of Baroda, a leading public sector bank, has rolled out Retail Loan Factories and has continuously initiated product/ process innovation to enhance customer experience. This study is conducted to analyze the appropriateness of the Banks decision to launch Retail Loan factories and to assess their contribution to Banks total Retail loan Book.

1.2 Scope of the Study

In this study, the Retail credit portfolio of Bank of Baroda over a period of 2007-2011 has been analyzed in order to determine the growth in terms of retail credit amount disbursed and the interest income.

1.3 Theoretical Background

Banks in India have traditionally focused on performing the intermediation function by mobilizing household savings and channelizing them to corporates and business houses for fuelling economic growth in tune with national priorities. This resulted in a skewed composition of retail business in the balance sheets of banks.While retail liabilities constituted a susbstantial chunk of their total liabilities; retail assets, in the form of home loans, car loans and personal

loans were a negligible component of total assets. This was due to the directives of RBI, which treated credit as a scarce commodity and banks were mandated to lend for productive purposes with specific targets for priority sector lending. Loans for cars, two-wheelers and consumer durables were considered as unproductive assets and banks refrained for lending for such purposes. Moreover, retail loans are typically low value and high volume business. Such volumes could only be handled by leaveraging technology.The public sector banks, which dominated the banking space, faced stiff resistance from militant trade unions which slowed down the process of adoption of technology. The situation has changed in the post- Liberalisation era. The banking sector was opened to the private sector. The new generation private sector banks leaveraged technology to keep a tab on costs and maintain business viability. At the same time, with increasing economic development, the income levels of the public started rising. This resulted in increasing consumerism and a growing demand for housing and consumer goods.The tech-savy private sector banks found a lucrative business opportunity to carve out a market share in the untapped market for retail loans. RBI also issued guidelines to include home loans and education loans, upto a certain limit, under the ambit of priority sector lending. This provided a further fillip to retail lending . The private sector banks, lead primarily by ICICI Bank , ushered in the retail lending boom in India. The sustainability of the low value and high volume retail banking business was ensured by developing the following pillars: 1. Technology 2. Centralised operations 3. Outsourcing Banks started leveraging technology to create low cost and customer-friendly alternate delivery channels such ATMs, internet banking and phone banking for distribution of retail products and services. Activities such as collection of documents for opening of accounts,loading of cash in ATMs and collection of instalments from recalcitrant borrowers were outsourced to third parties to curb costs. The introduction of Core Banking Solutions (CBS) paved the way for banking operations to be carried out any time and any where. This obviated the need to process loan proposals or requests for account opening at branches. Instead, specialized cells, called centralized processing cells

(CPCs) were created for processing repetitive operations to achieve standardization in quality and to bring down the Turn Around Time (TAT). The processing of loan proposals , clearing cheques and account opening forms was shifted from branches to CPCs. Public Sector Banks also adopted CBS technology and created their own CPCs to beat competition. Bank of Baroda (BoB) created home loan CPCs and named them factories as they replicate the assembly line operations in factories. This research paper focuses on assessing the effectiveness of BoBs home loan factories .

1.4 Contribution of the Research Paper

Retail lending is now not an option, but an imperative. "The margins are better in retail, plus the risks get spread out over a basket of borrowers [rather than being concentrated among a few]. It's a growth area with tremendous scope," says S.K. Banerji, managing director of the Saraswat Cooperative Bank, one of the leading co-op banks in India. So this study will help the banks, financial institutions, academicians, consultants and researchers to have a better understanding of booming opportunities and how to exploit them. It will help Bank of Baroda (Retail Loan Factories) in adopting aggressive strategies, overcoming their shortcomings, leveraging their branch network and customer base to earn a larger share of retail pie.

1.5 Objectives of the Study

1. To study and analyze the performance of Retail loan factories in Retail Advances of BOB and their contribtion towards the Banks retail loan portfolio based on the following parameters: a) Portfolio of credit disbursed b) Level of Non- Performing Assets

2. A study was also carried out to understand the customer preference for retail products for various banks.

1.6 Research Methodology

Type of Research: Descriptive Research Type of Data: Primary and Secondary Data Sampling Frame: Bank of Baroda, Pune Region Sampling Method: Non-Probability Convenience Sampling Sample Size: 100 respondents Sampling Area:Pune

1.7 Data Collection

For the purpose of this study, primary data has been collected through a structured questionnaire. The study also used secondary data that has been collected from the Banks Annual Reports, Journals And Publications and its website.

2. Results and Discussion

1. Growth in Bank of Barodas Retail Credit since the Inception of Retail Loan Factories

Growth in Retail Credit (yoy)

40.00% Percentage Growth 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2007-08 2008-09 2009-10 2010-11 32440.37 16892.32 19633.49 24253.25 Year 17.97% 16.23% 23.53% 33.76%

Retail Credit
Amount (in Crore)

Figure 2.2
2007-08 2008-09 2009-10 2010-11

Figure: 2.1

Analysis and Interpretation Retail Credit of Bank of Baroda grew at CAGR of 24.30% during 2008-11

Retail Credit as a percentage of total Domestic credit fell from 19.79% in 2007-08 to 17.80% in 2008-09 and then increased gradually to 18.80% in 2010-11

Retail Credit as a % of Domestic Credit

% of Domestic Credit 2007-08 Year 2008-09 2009-10 2010-11 Percentage 17.80% 18.15% 18.80% 19.79%

2. Growth in Retail Assets Of Bank Of Baroda

Retail Assets
6000000 5000000 4000000 3000000 2000000 1000000 2007- 2008- 2009- 201008 09 10 11 Retail Assets 3244149 4964720 4500787 5395406 0 Percentage

Retail Asset Growth%

60% 50% 40% 30% 20% 10% 0% -10% -20% Growth% 200809 53% 200910 -9.30% 201011 19.80%

Figure: 2.4

Figure: 2.5

Analysis and Interpretation

Retail Assets of Bank of Baroda grew at a CAGR of 18.48% during the period 2008-2011. Retail Assets registered a growth of 19.80% in 2010-11 from a fall of 9.30% in 2009-10 The fall in growth was due to the recession that happened during 2008-09 which led to tightening of Monetary Policy and consequently increase in rates of interest on loans.

3. Non Performing Assets

NPA as a % of Retail Credit

Amount OF NPA ( in Crore)

2007-08 579.83 507.72 Year 482.75 511.77 2008-09 2009-10 2010-11 0.00% 2.00%

3.01% 2.48% 2.11% 1.79% 4.00%

2007-08 2008-09 2009-10 2010-11

Figure: 2.6

Figure: 2.7

Analysis and Interpretation Amount of NPA stood at Rs.579, 83 crore (1.79% of Retail Credit) in the financial year 2010-11 as compared to Rs. 507.72 crore (3.01% of Retail Credit) in year 2007-08. Improvement in quality of assets was observed during the period 2007-08 due to robust and standardized loan appraisal techniques adopted.

% of Growth in Products
Growth%

4. Growth under Five Key Products

(Excluding LABOD/ ODBOD)
Year 2009-10

22.65%

Growth In Products
4200 Amount Of Growth 4000 3800 3600 3400 3200 Growth 200910 3507.36 Year 201011 4094.72 2010-11 21.56%

Growth Percentage

Figure: 2.8

Figure: 2.9

Analysis and Interpretation Five Key Products of Bank of Baroda experienced a growth of 22.65% in 2010-11 as compared to 21.56% in 2009-10. This is due to increase in Retail loan Factory outlets and branches of Bank of Baroda during the period 2007-11.

5. Age Profile
Table 2.1: Demographic Details of the Respondents Age Group (yrs.) No. of Respondents Percentage

18-25

17%

25-40

27

53%

40-55

15

30%

Above 55

17%

Total

60

100%

Demographic Details
60% 50% Percentage 40% 30% 20% 10% 0% 18-25 25-40 40-55 55yrs yrs yrs yrs and above Age( in years) Percentage

Analysis and Interpretation Majority i.e. 53% of the respondents

belonged to the age group of 25-40 years.

The reason behind that is, this is the

stage where people try to bring alive their aspirations of having their own home and Figure: 2.10

vehicle.

6. Gender:
Table 2.2: Gender Details of Respondents Gender Frequency Percentage Male Female Total 36 24 60 60% 40% 100%

Analysis and Interpretation From the above data, it can be inferred compared to female (40%). that the major user of retail credit products is male (60%) as Figure: 2.11

Gender Profile
Percentage Of Respondents 70% 60% 50% 40% 30% 20% 10% 0% Male Female Gender % of Respondents

7. Marital Status:
Table 2.3: Marital Status of the Respondents Status Married Unmarried Total Analysis and Interpretation 63% of the respondents were married. No. Of Respondents 38 22 60 Percentage 37% 63% 100%

Marrried people avail of loans to buy home, vehicle etc to meet the needs of their growing families. Figure: 2.12

Marital Status of Respondents

37%

Married Unmarried 63%

8. Educational Qualification:
Table 2.4: Educational Qualification of the Respondents Qualifications Senior Secondary Higher Senior Secondary Graduate and Professional Post Graduate Total Analysis and Interpretation All the respondents of survey were literates. Majority of the respondents were Graduates and Professional Degree Holders. No. of Respondents 1 4 39 16 60 Percentage 1% 7% 65% 27% 100%

FFigure: 2.13

Educational Qualification
1% 7% 27% 65%

Senior Secondary Higher Senior Secondary

9.

Income Profile:

Table 2.5 Income Profile of Respondents Income Group Non-Earning Less than 10,000 10,000-15,000 15,000-20,000 20,000 and above Total Analysis and Interpretation Respondents earning Rs. 8000-15000 constitute the major chunk of the respondents using retail products. This income group qualifies almost all the eligibility criterion of retail offerings. No. of Respondents 9 12 15 18 6 60 Percentage 15% 20% 25% 30% 10% 100%

Income Profile Of Respondents

30% 25% 20% 15% 10% 5% 0%

Non Earning 15%

Percentage

Less than 10000 20%

1000015000 25%

1500020000 30%

20000 and above 10%

Figure: 2.14

10. Occupation
Table 2.6 Occupation Details of Respondents Occupation Students Salaried Businessmen Retired Total No. Of Respondents 7 14 20 9 60 Percentage 11.66% 23.33% 33.33% 15% 100%

Analysis and Interpretation As some of the Retail products of banks are specially designed for students and retired persons, they were also considered for the survey. Salaried individuals and Businessmen are the major users of retail products

User Of Retail Credit Products

18% 14% 28% 40%

Students Salaried Businessmen Retired

Figure: 2.15

11. Influence of factors on the Purchase decision of Retail Credit Products

Percentage of Respondents

40 35 30 25 20 15 10 5 0

Intere st Rates 35

Proce ssing Time 37

Good will

Percentage

Word Of Mout h 15

Adver tiseme nt 6

Figure: 2.16

Analysis and Interpretation 37% of the respondents considered Processing Time as a major influencing factor in making purchase decision of retail credit products while the interest rate constituted a close second with 35% of respondents.

Time and cost of products are important factors influencing consumer preferences and this has been confirmed by the respondents.

12. Demand for the Various Retail Credit Products/ Offerings

Retail Product Demand

Housing Loan 12% 18% 20% 5% Personal Loans Credit Card 7% 38% Educational Loan Vehicle Loan

Housing Loan Customers Age Profile

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

55 and above % 4.35% 60.87% 21.74% 13.04%

18-25

25-40

40-55

Figure: 2.17 Analysis and Interpretations

Figure: 2.18

37% of the respondents availed for Home Loan followed by 20% of the respondents who availed for Vehicle Loan

60.87% of the respondents availing Housing Loan belonged to the age group of 25-40 because at this stage, people try to fulfill their dreams of having their own home and hence these loan constitute a major chunk of retail product availed by the respondents.

13. Banks Considered For Retail Offerings While Making A Purchase Decision

(a) Housing Loan Analysis and Interpretation

Banks Considered For Vehicle Loan

ICICI 5%
15% 20% 8% HDFC City Bank

35% of the respondents considered HDFC for availing housing loan followed by 22% of the respondents who considered ICICI for the loan.

17%

35%

SBI

Low interest rates and Less Processing Time helped HDFC and ICICI in creating goodwill in the mind of people.

Both the banks created a place of their own in the mind of customers by using aggressive marketing strategies and by offering superior service in this category of retail offerings.

Figure: 2.19

(b) Vehicle Loan Analysis and Interpretation ICICI is the preferred choice of 35% of respondents for vehicle loan followed by HDFC (20%). Through aggressive advertisements, strong network with dealers and superior service, ICICI has achieved a higher share of vehicle loans.

Banks considered for Home Loan

8%

20%

22% 15%

ICICI

SBI
HDFC

35%

Figure: 2.20 ( c)Educational Loan Analysis and Interpretation SBI and PNB constituted the major chunk i.e. 30% and 25% respectively in the educational loan category. Interest rates being the major factor for educational loan, PSUs have the competitive edge.

Educational Loan
SBI 13% 20% 30% Dena Bank 25% 12% Bank Of Baroda Others PNB

Figure: 2.21 (d) Credit Card Analysis and Interpretation

35% of the respondents considered Citi Bank for credit cards followed by 20% for Standard Chartered bank and 18% for HSBC Bank.

Being the first bank to launch credit cards and through aggressive advertisements in the past, Citi Bank has created awareness amongst the customers and by providing superior service , Citi Bank has still acquired a major share of the credit card business.

Credit Card
Figure: 2.22
11% 18% 16% 20% 35% Citi Bank Standard Chartered ICICI HSBC OTHERS

14. Awareness of Banks through Various Advertising Media

Awareness Of Banks
40% 35% 30% 25% 20% 15% 10% 5% 0% Percentage Awareness

Television

ICICI SBI HDFC Bank Of Baroda

35% 19% 13% 12%

Newspaper s and Magazines 27% 35% 39% 33%

Radio

Word Of Mouth 18% 26% 21% 35%

Billiboards/ Hoardings 17% 15% 22% 14%

Pamphlets

3% 3% 5% 4%

2% 3%

Figure: 2.23 Analysis and Interpretation ICICI in general had the highest level of awareness among the people owing to its extensive advertising. SBI, being an old and experienced player, had immense awareness through the word of mouth media. HDFC , a pioneer in the home finance arena, had taken the print media as a medium for creating customers awareness.

Bank of Baroda Being a PSU it had an immense awareness through word of mouth (34%), closely followed by Newspapers and Magazines (33%). Awareness through Television is less as compared to the other competitors in the market.

Bank Of Baroda
Television
3% 14% F 34% i 12% Newspapers and Magazines 33% Radio Word Of Mouth 4% Billiboards/ Hoardings Pampletes

g u r e F igure: 2.24

Conclusions
1. Retail Lending of BOB is mainly directed at salaried and self- employed persons who are people to have regular or stable income to meet EMI commitments. Thus retail banking tends to be urban and semi urban in focus. 2. Retail banking products do not have uniform or standard terms of credit. In fact, despite being marketed to the salaried / self- employed class, it is seen that terms such as the amount of loan, repayment period, rate of interest, margin, collateral etc. could be different from person to person.This non-standardisation of the loan products causes delays in processing at the Loan Factory and increases the Turn Around Time (TAT). 3. The study not only highlighted that there has been growth in banks total retail loan book since the inception of Retail Loan Factories, but also the fact that there has been a

continuous reduction in Banks NPA (Non-Performing Assets) . This is a pointer to the improvement in the quality of loan appraisal. 4. Retail Credit constitutes only 12% of Total Credit so there is a huge untapped market potential. 5. Diversified Product Portfolio (10 Retail Credit products) and the new strategies adopted by the Retail Loan Factories not only helped Bank Of Baroda to gain the market share in Retail Credit but also to exploit the opportunities available in the market due to Retail Credit Boom.

Limitations
1. It is a limited research, which may be insufficient to give the complete picture of the scope of retail loan growth in India. 2. Some of the respondents of the survey were unwilling to share information.

Recommendations
1. Customization of services is a strict need of the hour. This is an art mastered by the private banks such as HDFC, ICICI and Axis and also by PSU banks like SBI. 2. Aggressive promotions in the car loan category, development of a site exclusively for car loan customers. 3. Regarding the Gold Funds, many banks are offering retail loans against Gold deposits as mortgages since the valuation of gold is increasing day by day, such practices should also be promoted by Bank of Baroda. 4. Reason for State Bank of India being a market leader is that it offers loans at the least possible rates also known as Teaser rates. A similar strategy should be adopted by Bank of Baroda for this. 5. Step up facility for retail loans should be promoted as a USP of Bank of Baroda as many customers prefer bank with flexible step up policy.

6. Cross-selling of products: Bank of Baroda has an added advantage of having a wide

network of branches, which gives it an opportunity to sell third-party products through these branches.

References:
1. Annual Report of Bank of Baroda 2008, 2009, 2010, 2011 2. Bank of Barodas website, http://www.bankofbaroda.com assessed on 24 May 2011 3. Gopinath S. (2005): Retail Banking Opportunities and Challenges, Keynote address Delivered at the international Conference on Retail Banking directions: Opportunities & Challenges, Mumbai, May 28 4. Jain, Natika P. Retail Banking-Hotter than Vindaloo. APJRBM. 2010 Nov; 1(2) . <http://www.skirec.com> accessed on 3 June, 2011. 5. Misra, Hari, Retail Lending: Balancing Concerns in Difficult Times, sponsored by Finsight Media, Feb 2009, http://www.arms.net.in, accessed on 6 June, 2011. 6. Math,B. (2005, December).Future Growth Drivers-Retail versus Corporate. Paper presented at a seminar at MDI, India 7. RBI, Report on Trends and Progress of Banking in India 2009, November 8, 2010, http://www.bankreport.rdi.org/, accessed on 8 June 2011.

ROLE OF HUMAN RESOURCE MANAGERS OF TOMORROW

Prof. Ashwini Walhekar Assistant Professor, MPIM, Hadapsar. Abstract Human Resource Departments play an important role in the success of an organization and hence importance of it has to be recognized by management of every organization. The management needs to invest a lot of time and resources to understand and keep up with the changing scenario of the HR department in the 21st century. In order to survive the race and be a strong competitor, HR department & HR Managers needs to be more knowledgeable about people, organizations, and the total environment and update itself and be conscious of the HR issues cropping up. With high attrition rates, poaching strategies of competitors, there is a huge shortage of skilled employees and hence, a company's HR activities play a vital role in dealing with this crisis. The most important challenge is how HR manager and his staff can help in improving organizational effectiveness, and how best he can utilize the results of behavioral scientists for the benefit for the people at work. HR managers have to face all the challenges that may come their way from recruiting employees, to training them, and then developing retention strategies and building up an effective career management system for them. It is not enough to just take care of the employees; but new HR initiatives like focus on the quality needs, customerorientation, productivity stress management , team work and leadership building should also be focused. Keywords: Management, HR Manager, Employees, HR issues & challenges Human Resource Management has developed considerably over the past century, and experienced a major revolution in form and function primarily within the past two decades. Driven by a number of important internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of continuous competitive advantage for organizations operating in a global economy. Changes in HRM Some of the important changes those are likely to take place in the human resource management are as follows: Enhancement in education levels

Introduction Human resource management, if we see it from definition perspective it is a process of bringing people and organizations together so that the goals of each others are met. If we see in practical situation the above definition its just one side of a coin which has limited HRM involvement but HRM today is a different story, it have changed the way we work, and also it helps an organization to survive in recessionary period. Managing and attracting the human resource in todays time is very difficult task. The role of HR manager has changed a lot from being protector and screener to the role of Savior who acts as planner and change agent affecting bottom of the pyramid where it is blue collar workers & at the Top & Middle level executives.

Due to technological progress and the spread of educational institutions workers will increasingly become conscious of their higher level needs; managers will have to evolve appropriate policies and techniques to motivate the knowledge of workers. Better educated and organized workforce will demand greater carefulness and independence at the work place. Technological expansion This will require retraining and mid career training of both workers and managers. Rise of the international corporation is proving new challenges for personnel function. Flatter Organizations Pyramidal organizations were the norm of yesterday. The pyramidal shape of organizations is converted into flat organization. This is mainly due to the enhancement in educational level of Workforce, workforce diversity and globalization.

labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure. Enhanced appraisal and reward systems Organizations will be required to share gains of higher productivity with workers, more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed. Occupational health and safety Due to legislative pressure and trade union movement, personnel management will have to be healthier and safety alert in future. Organizational development In future, change will have to be initiated and managed to develop organizational effectiveness. Top management will become more actively involved in the development of human resources. Altering composition of work force In future, women and minority groups, SCs and STs would become an important source of man power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations. Ethical Management As the issues faced by the HR manager have increased in number and complexity, so have the pressures and challenges of working ethically. Ethical issues pose fundamental question about fairness, justice,

Employee Empowerment Gone are days when managers were exercising formal power over employees to get work done from them The changes occurred in attitude and awareness of employees over the period have rendered this mode of managing employee as obsolete. Under the changed conditions when employee has become knowledge worker the employees need to be provided with greater autonomy through information sharing and provision of control over factors that affects performance. Growing government role Personnel management has become much legalized in India. In future private organizations will have to synchronize their

truthfulness, and social responsibility. Ethical issues in HRM often have dimensions such as extended consequences, multiple alternatives, mixed outcome, uncertain consequences and personnel effects. Then, real problem of HR manager is hoe to deal with these ethical dimensions? HR professional as change Agent HR manager is expected to play the role of change agent. This demand that the HR manager must move from playing transactional role to transformational role. HR professionals should play the role of change agent in three areas; initiatives, processes and cultural adaptation. Initiative changes focus on implementing new programmes, project or procedure. Process changes within a firm focus on the way in which work is being done. Cultural changes occur within a firm when fundamental ways of doing business are reconceputalised. HR Manager as change agent built a firms capacity to manage all the three types of change. New personnel policies New and better polices will be required for the work force of the future. Traditional family management will give way to professional management with greater forces on human dignity. Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach. Development planning Personnel management will be involved increasingly in organizational planning, structure, composition etc. Greater costconsciousness and profit-orientations will be

required on the part of the personnel department.

Principles for HR managers to comprehend the challenges. There are certain principles, which are prescribed for HR to comprehend the challenge faced by them. There is a need for HR to focus on the following principles: 1: Human Resource Strategy Must Be Anchored To the Business Strategy: The HR organization must understand the strategy and economic realities of the business it supports. It must be regarded as an essential contributor to the business mission. HR people must speak the language of business and their activities must reflect the priorities of the business. Nothing contributes more to the credibility of the Human Resource Department than for it to be focused on matters of genuine concern to the business. If it is not, it gives the opportunity for its opinion to be disregarded and its contribution to be minimized or even eliminated. 2: Human Resource Management is Not about Programs; it is about Relationships The primary HR role is to create an environment in which employees are committed to the success of the organization that employs them. Its about developing forms of attachment with people that make them to work there and contribute willingly. It involves using teamwork and establishing peer review systems that provide employees with a meaningful voice in decisions that affect them. It involves engaging employees in the change process and giving them a voice in shaping their future since experience shows that people support that

they can create. Creating effective relationships includes providing employees with opportunities to acquire new skills, which increase their capacity to contribute. 3: The Human Resource Department must be Known as an Organization that Anticipates Change and Understands its Importance to Implement it The HR function must understand the process of change. It must work closely with line managers who are leading change and assist those who must implement change but seem reluctant to do so. HR can help managers to appreciate that people who do not resist change. HR should help managers to understand that involving employees in the change process energizes them, draws on their know-how, and helps produce a sound result. HR people should be viewed as thoughtful and enthusiastic advocates of the changes and new ideas that contribute to the success of the business. 4: Human Resources People should be an Outspoken Advocate of Employee Interests HR must provide a thoughtful, objective and realistic assessment of the human resource aspects of pending decisions to help ensure that the best conclusion is reached. Since sound business decisions balance a series of factors that typically conflict with one another, the HR role is not to win arguments but to ensure that human resource issues are given the attention they deserve. The impact of decisions on employees almost certainly is overlooked unless HR puts a spotlight on it. 5: The Effectiveness of HR depends on its staying focused on Issues rather than on Personalities

Much resentment and hard feeling can be avoided by keeping issues rather than individuals the topic of discussion. Regardless of how one may feel, it is less argumentative to keep the discussion objective and at a matured level, rather than finger pointing or buck-passing. A recommendation made by a colleague that has negative human resource consequences can simply be opposed or it can be acknowledged and countered with other recommendations that accomplish the same objective but dont have the negative impact. 6: Human Resource Executives must accept that Constant Learning and Skill enhancement are essential to them, being Contributor to the Business The speed of change makes the half-life of much business knowledge so short that constant learning and skill enhancement are necessary. The competencies required to effective human resource executives include not only functional expertise (compensation, management development, etc.) but also business knowledge, financial understanding, consulting skills, and interpersonal skills. People in HR positions must continuously expand their know-how and avoid the mistake of carrying old skills, notions and styles nostalgically forward. HR must promote the idea that for people to be effective as employees, they have to be managed effectively as people. These principles go a long way in explaining that HR professionals along with knowing their theory inside also have to gain a deeper and more wholesome understanding of their internal and external environment.

FUTURE ROLE OF PERSONNEL MANAGERS Some of the emerging role of HR manager is as follows:1. HR managers of future will have to stress upon overall development of human resources in all respects. 2. The scope of human resource management will be extended to cover career planning and development, organization development, social justice etc. 3. The HR manager will be required to act as a change agent through greater involvement in environment and scanning and development planning. They will have to devote more time to promote changes than to maintain the status quo. 4. The HR function will become more cost-conscious and profit oriented. Instead of merely administering HR activities, the HR department will have to search out opportunities for profit improvement and growth. 5. Greater authority and responsibilities will be delegated to HR managers particularly in the field of employee welfare services. 6. HR managers will have to continuously retrain themselves to avoid obsolescence of their knowledge and skills. They must be a constant learner and skill enhancement is essential to them as they are the contributor to the business.

7. HR professional is expected to act as a strategist being a strategic partner he/she must answer how to create an organization to accomplish business goal. 8. Work-life balance is becoming a major challenge to HR manager as more women are taking up jobs to add to finances of their families, hence it is HR manager role to develop various work life balance programme like Flexible work schedule, Children at or near the workplace, Job sharing etc. 9. Globalization is becoming an important challenge for HR Managers in that regards HR managers has to play 3 important roles:(A) Developing a Global mindset inside the HR organization including a deep understanding of new global competitive environment and the impact it has on the management of people worldwide (B) Aligning core human processes and activities with the new requirements of competing globally and simultaneously responding to local issues and requirements (C) Enhancing global competencies and capabilities with HR functions

10. The role of the HR manager, director, or executive must be parallel to the needs of his or her changing organization. Successful organizations are becoming more adaptive, resilient, quick to change direction and customer-centered.

Within this environment, the HR professional is a strategic partner, an employee sponsor or advocate and a change mentor. Thus, the job of HR managers will become more difficult and challenging in future. They will have to be experts in behavioral sciences. They will play a creative and developmental role. They will have to acquire new skills, values, attitudes to discharge their new responsibilities successfully. Conclusion Along with the changing environment, the HR environment has also been changing and is marked by characteristics like, workforce diversity, globalization, economical and technological changes, organizational restructuring, changing nature of work etc. Therefore it is necessary for organizations to create an empowering culture and to work out retention strategies for the existing skilled manpower. Organizations are increasingly dependent on HRM to increase the success ratio in today's competitive global environment. Personnel directors are the new corporate heroes. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. References: 1. C.B.Mamoria & S.V.Gankar,Personnel Management Text & Cases Himalaya Publishing House. 2. K Aswathappa, Human Resource ManagementText and Cases McGrow- Hill Companies 3. Biswajeet Pattanayak Human Resource Management PHI Learning Pvt. Ltd.

4. Dr. P. C. Pardeshi, Human Resource Management, Nirali Prakashan 5. http://www.hrfolks.com/knowledgeb ank/future%20of%20mgmt/future%2 0of%20hr%20management.pdf

Prof. Ashwini Walhekar Assistant Professor, Mahatma Phule Institute of Management , Hadapsar E-mail-ashwinikakade27@gmail.com 9552557147

Research in e-HRM: Review

Rani Agrawal MBA-I agrawal.rani12@yahoo.com

ABSTRACT This article reviews current empirical work on electronic Human Resource Management (e-HRM). The rapid development of the Internet during the last decade has also boosted the implementation and application of electronic Human Resource Management (e-HRM). Surveys of HR consultants suggest that both the number of organizations adopting e-HRM and the depth of applications within the organizations are continually increasing. In addition, an escalating number of practitioner reports provide anecdotal evidence that e-HRM is becoming increasingly common and may lead to remarkable changes. 'E-HRM is the (planning, implementation and) application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.

INTODUCTION The processing and transmission of digitalized HR information is called electronic human resource management (eHRM).E-HRM is the application of IT for HR practices which enables easy interactions within employee and employers. It stores information regarding payroll, employee personal data, performance management, training, recruitment and strategic orientation. Information technology is changing the way HR departments handle record keeping and information sharing. It decreases the paperwork substantially and allows easy access to voluminous data. The employee can also keep track of his/her achievements without having to go through litigious procedures. It uses intranet or other web technology channels. It can also be used for implementation of different HR strategies. The authorization of different HR functions can be distributed through E-HRM.

Competitive business environments have compelled the organizations to think speedily to innovate and excel for their survival. Technology advancement is one of the powerful driving forces. It has reshaped the way we communicate, live, work and also the way a business is conducted. Corporations need to shift from physical technology to information technology, from capital centered economy to human centered economy, and further from conflict to cooperative working relationships. Since many years now, information technology seems to be affecting individuals and organizations communication and behaviours. The change in Information Technology is faster than any other processes in the organization. One of the major hurdles which the HR department needs to cross, is the changing technological environment. The IT possibilities for HRM are endless; in principle all HR processes can be supported by IT. Computers have simplified the task of analyzing vast amounts of data and they can be invaluable aids in HR management, from payroll

processing to record retention. With computer hardware, software and databases, organization can keep records and information better as well as retrieve them with greater ease. E-HRM is the relatively new term for this IT supported HRM, especially through the use of web technology. E-HRM is the new field of technology that is widely spreading in organizations around the world. It aims at transforming the HR functions into one that is paperless, more flexible and resource efficient. With the state of IT, HRM has become more effective through the use of e-HRM technologies. E-HRM has the potential to change the way traditional HRM functions are performed. For e.g. in the analysis and design of work, employees in geographically dispersed locations can work together in virtual teams using videos, e-mail etc. Under recruitment function, job openings can be posted online, and candidates can apply for jobs online. On compensation and benefits issues, e-HRM will make it easy for employees to review salary and bonus information and seek information about bonus plans

DEFINITION: E-HRM is a way of implementing HR strategies, policies, and practices in organization through a conscious and direct support of and/or with full use of web-technology based channels. OBJECTIVE: To study what is e-HRM (its objective, scope, limitations, functions, benefits, goals, outcomes, and consequences) and how e-HRM is shaping organization in a technology driven environment. REVIEW OF LITERATURE:

Literature review examines recent research studies, company data, or industry reports that act as a basis for the proposed study.According to Biswanath Ghosh [2002], in an organization the most valuable input is the human element. The success or failure of an organization depends to a large extent on the persons who manage and run the organization. In business the greatest asset is the human resource of the enterprise and not the plant, equipment or the big buildings it owns. There was a time when manpower was considered as a cost factor but not it is recognized as an investment. The e HRM can range from basic personnel records to sophisticated networks of subsystems with definite purposes. Today most of these will be computer systems. The manpower information system can provide necessary information in a form which can be integrated with any other business data. With most data base systems, there are facilities to pull out any of the data and present them in the required form. In the view of Michael Armstrong [2003] e-HR provides information required to manage HR processes.These may be core employee database and payroll systems but can be extended to include such systems as recruitment, e-learning, performance management and reward. The system may be web-based, enabling access to be remote or online and at any time. The information provided by the e-HR process can communicated across organizations. If posts static data such as information on HR policies and communications about employer facilities such as learning opportunities and flexible benefits. It can include links that enable managers and other employees to interface directly with HR applications and make changes or enquiries. RESEARCH METHODOLOGY: Research Design: I did descriptive study.

Research Tools: I did secondary research. I collected data from the internet from various websites, journals, magazines. THE STATE OF ORGANIZATION HRM IN AN

E-HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-based channels. E-HRM is a concept -a way of doing HRM. This is not to ignore the fact that E-HRM can transform the nature of HRM strategies, policies and practices. Researchers are searching for relevant and adequate theory that can fully grasp the concept of EHRM, and frequently present fragmented empirical evidence, particularly on EHRM sub-fields such as e-recruitment and e-learning, these-called earlybird areas where web technology was first adopted. OBJECTIVES: E -HRM is designed following objectives:

Higher speed of retrieval and processing of data; More consistent and higher accuracy of information/report generated; Fast response to answer queries A higher internal profile for HR leading to better work culture More transparency in the system Significant reduction of administrative burden Adaptability to any client and facilitating management; Integral support for the management of human resources and all other basic and support processes within the company; A more dynamic workflow in the business process, productivity and employee satisfaction.

BENEFITS OF E-HRM:

to

achieve

the

To offer an adequate, comprehensive and on-going information system about people and jobs at a reasonable cost; To provide support for future planning and also for policy formulations; To facilitate monitoring of human resources demand and supply imbalance To automate employee related information; To enable faster response to employee related services and faster HR related decisions and; To offer data security and personal privacy.

Standardization Ease of recruitment, selection and assessment Ease of administering employee records Reductions to cost, time and labour Access to ESS training enrollment and self development Cost and ESS Location and timeliness

HRM goals: The main goals of e-HRM are as followed:

Improving the strategic orientation of HRM Cost reduction/efficiency gains Client service improvements/ facilitating management and employees.

SCOPE OF E-HRM:

E-HRM outcomes: According to Beer et al(1984) all E-HRM activities, will implicitly or explicitly be

A decisive step towards a paperless office;

directed towards distinguish four possibilities: high commitment, high competence, cost effectiveness and higher congruence.These outcomes, in turn, may change the state of HRM in an organization,in to a new HRM state. EHRM will change the nature of the HR department by making less administrative tasks for the HR department and therefore less administrative positions, more focus on the strategic goals of the organization. TYPES OF E-HRM:

act as the basis for strategic decisionmaking Integral support for the management of human resources and all other basic and support processes within the company. Prompt insight into reporting and analysis A more dynamic workflow in the business process, productivity and employee satisfaction A decisive step towards a paperless office Makes the work to get over fast

Lepak and Snell(1998) distinguished three areas of HRM as, operational HRM, relational HRM and transformational HRM. Operational HRM: e-HRM is concerned with administrative function like payroll, employee personal data, etc. Relational HRM: e-HRM is concerned with supportive business process by the means of training, recruitment, performance management, and so forth. Transformational HRM: e-HRM is concerned with strategic HR activities such as knowledge management, strategic re-orientation, etc. Advantages of E-HRM The E-HRM business models are designed for human resources professionals and executive managers who need support to manage the work force, monitor changes and gather the information needed in decision-making. At the same time it enables all employees to participate in the process and keep track of relevant information.

Disadvantages of E-HRM

Employees and line managers mindsets need to be changed: they have to realize and accept the usefulness of web-based HR tools. They generally feel that they lack the time space needed to work quietly and thoughtfully with web-based HR tools and so, if there is no need, they will not do it. Guaranteeing the security and confidentiality of input data is an important issue foe employees in order that they should feel safe when using web-based HR tools.

COCLUSION: E- HRM is a web based tool to automate and support HR processes. The implementation of e-HRM is an opportunity to delegate the data entry to the employee. e- HRM facilitates the usages of HR marketplace and offers more self-service to the employees. e- HRM (Electronic Human Resource Management) is advance business solution which provides a complete on-line support in the management of all processes, activities, data and information required to manage human resources in a modern company. It is an efficient, reliable, easy to use tool, accessible to a broad group of

Collection and store of information regarding the work force, which will

different users. e- HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels. It covers all aspects of human resource management like personnel administration, education and training, career development, corporate organization, job descriptions, hiring process, employees personal pages, and annual interviews with employees. Therefore e-HRM is way of doing HRM.

Rural Entrepreneurship as an Economic Force in Rural development

Prof.Rushikesh Kakandikar Assistant Professor, Dnyanganga College of Engg. & Research (MBA Dept.) Narhe, Pune-411041,E-Mail-krushikesh.123@gmail.com,Mob-9175077357 Abstract The rural SME sector economy plays a vital role in providing employment and income for the poor and unemployed in rural areas. As the population pressure grows in the land-scarce and developing countries like India, the growth in the agricultural production cannot absorb the ever increasing rural labor force in agricultural employment. This leaves the rural nonfarm sector in the form of rural SMEs to absorb those released from agriculture but not absorbed in the urban industries. Contributing more than 52% of the GDP and making available more than 75% of all labor force in India the rural sector is best poised for a rapid expansion in the small and medium industry arena. Keywords: Rural Entrepreneurship, SME, Agriculture, Globalization, virtual accessibility Introduction India has been steadily growing as an economic power in the past two decades and has been able to create the bare necessary infrastructure required to sustain this rate of growth. The connectivity to remote areas has been improved to a great extent both in terms of physical accessibility by road and rail and virtual accessibility in terms of telecommunications and information technology. Combined with this there is a steady growth in the education among the rural population including professional qualifications among rural youth. This presents the ideal situation for enterprises to spring in the rural areas where the cost of operation, labor and availability of raw materials is substantially cheaper as compared to urban parts of the country.

Government Agencies set up to Promote Rural Enterprises The government having realized the true potential of rural SME sector has initiated a large number of programs and schemes aimed directly at boosting entrepreneurial ventures in the rural parts of the country.

National Agricultural and Rural Development Bank (NABARD): This is the nodal agency that provides almost three fourth of all the financial assistance allocated by the government towards uplifting rural enterprise. The Rural Small Business Development center (RSBDC): Sponsored by the NABARD this one its kind of a governmental initiative in the world. The center provides for managerial and technical support to the small and micro enterprises of the rural sector. It conducts training programs on rural entrepreneurship, skill up gradation, trainer training, awareness and counseling sessions across the country to enhance the productivity of rural SME units. National Small Industries Corporation (NSIC): This central government agency is responsible for procurement and supply of indigenous as well as imported equipment and machinery on easy hire purchase terms for rural SMEs, distribute raw materials and

export finished products of small and medium industries of the rural sector. Small Industries Bank of India (SIDBI): This is the primary agency that distributes direct as well indirect finance to all SMEs and coordinates the functioning of similar bodies under various schemes launched by the government from time to time. Rural and Women Entrepreneurship Development program (RWEDP): This agency aims at creating conducive business environment as well as build infrastructure and human capital which will aid the long term growth of small industries in rural areas. Scheme of Funds for Regeneration of Traditional Industries (SFURTI): This body has the main objective of making the traditional industries of rural India commercially viable. Most small, micro and cottage industries are covered in its agenda. District Industrial Center (DIC): Every district in the nation now has a DIC which is responsible for integrated administrative and financial help at the district level that shall help and facilitate the growth and development of rural SME. Government Schemes to Enhance Rural Entrepreneurship In order to keep up with the demand for rapid growth of rural SMEs the Ministry of Micro, Small and Medium industries has initiated several benevolent schemes which are proving to be wonderful stimulus in this field.

Entrepreneurship Development Institution Scheme Rajiv Gandhi Udyami Mitra Yojana (RGUMY) Performance and Credit Rating Scheme (Implemented through NSIC) Product Development, Design Intervention and Packaging (PRODIP) Khadi Karigar Janashree Bima Yojana for Khadi Artisans Marketing Assistance Scheme Obstacles for Rural Entrepreneurship Lack of Knowledge: There is a distinct lack of knowledge of entrepreneurial opportunities among the rural youth. The better educated and trained youth mostly leave for urban destinations in search of employment. Lack of Finance: Despite sustained efforts from the government there is a clear hindrance in obtaining capital to start a new venture in the rural areas. Non availability of adequate collateral security often mars the chances of rural youth in obtaining funds in time to set up their own venture. Lack of Skills: There is an acute shortage of trained manpower in the rural areas to commence small industries. Adequate facilities for vocational training are yet no available to the majority of the rural population. Management of accounts, handling of human resources and many such other facets which are essential for running a successful enterprise are unheard of in most rural areas. Lack of Infrastructure: In many areas the road connectivity is a

major impediment in setting up of rural enterprise. Infrastructure requirements such as cold storage facilities, rail transport, electricity, etc are yet to be developed to a level which will promote entrepreneurship in remote localities.

Finance Options for Rural SMEs As a direct result of the plethora of schemes and programs that have been launched by the government to encourage rural entrepreneurship in India, the financing of such a project is now easier than a similar venture in the urban areas. Gramin Banks, Local Cooperative Banks and all public sector banks have now been authorized by the RBI to finance project up to Rs 2 Crore under any of the above listed schemes and then obtain refinance for the same from NABARD and SIDBI. Additionally most of the finance schemes with pragmatic periods of moratorium to help the rural venture stand on its feet and become economically viable. There are many subsidies of these schemes which make them extremely lucrative options for starting a rural SME. Type of Rural Entrepreneurship in Demand The various types of sectors and enterprises currently witnessing a boom in the rural areas can be broadly classified under the following categories: Agro Based Enterprises: These include direct sale or processing of agro products such as jaggery, sugar industries, pickles, oil processing from oil seeds, fruit juice, dairy products, spices, etc. Forest Based Industries: Such industries include wood products,

bidi making, coir industry, bamboo products, honey, making eating plates from leaves. Mineral based Industry: Such industries include cement industries, stone crushing, red oxide making, wall coating powders etc. Textile Industry: These include weaving, spinning, coloring, bleaching. Handicrafts: Such industries include making of wooden or bamboo handicrafts that are local to that area, traditional decorative products or toys and all other forms of handicrafts typical to the region. Engineering: Small and medium sized industries to produce agricultural machinery, equipment for usage in rural areas etc. Services: There are a wide range of services including m0obile repair, agriculture machinery servicing, etc which are being undertaken under this category. Tourism: These activities including conduct of ethnic, eco and rural travels and tours by local operators. Role and Importance of Rural Entrepreneurship in Indian Economy: The development of rural entrepreneurs is a complex problem which can be tackled by the social, political and economic institutions. The sooner they are established the better it would be for the entrepreneurial development in the rural sector and the economic growth of the country. 1. Provide employment opportunities: Rural entrepreneurship is labor intensive and provide a clear solution to the growing problem of unemployment. Development of industrial units in rural areas through

rural entrepreneurship has high potential for employment generation and income creation. 2. Check on migration of rural population: Rural entrepreneurship can fill the big gap and disparities in income rural and urban people. Rural entrepreneurship will bring in or develop infrastructural facilities like power, roads, bridges etc. It can help to check the migration of people from rural to urban areas in search of jobs.

3. Balanced regional growth: Rural entrepreneurship can dispel the concentration of industrial units in urban areas and promote regional development in a balanced way. 4. Promotion of artistic activities: The age-old rich heritage of rural India is preserved by protecting and promoting art and handicrafts through rural entrepreneurship. 5. Check on social evils: The growth of rural entrepreneurship can reduce the social evils like poverty, growth of slums, pollution in cities etc. 6. Awaken the rural youth: Rural entrepreneurship can awaken the rural youth and expose them to various avenues to adopt entrepreneurship and promote it as a career. 7. Improved standard of living: Rural entrepreneurship will also increase the literacy rate of rural population. Their education and self-employment will prosper the community, thus increasing their standard of living.

rural SME venture is the ideal business idea in the current times. Factors such as easy and cheap availability of labor, simplified finance schemes and provision of government facilities for marketing of the finished goods or product will make rural SMEs highly competitive. However there still exists a lack of infrastructure in terms of accessibility and storage facilities which restricts the full potential of the sector. The private sector has now initiated many cold storage chain facilities across most parts of the country which shall address this issue in a couple of years. References: 1. B.S. Rathore and S.K.Dhameja (1999) Entrepreneurship in the 21st Century, Rawat publication,Jaipur and Delhi. 2. Mookkiah Soundarapandian (2001) rural entrepreneurship: growth and potentials, Kanishka Publication, Tamilnadu. 3. T. S. Papola (1982),Rural industrialization: approaches and potential, Himalaya Pub. House. 4. T.Sankaraiah (1994) Problems and prospects of rural industries in India, Discovery Pub. House.

Conclusion: Keeping all the above factors in mind it can be safely assumed that commencing a

Rural Entrepreneurship as an Economic Force in Rural development

Prof.Rushikesh Kakandikar Assistant Professor, Dnyanganga College of Engg. & Research (MBA Dept.) Narhe, Pune-411041,E-Mail-krushikesh.123@gmail.com,Mob-9175077357 Abstract The rural SME sector economy plays a vital role in providing employment and income for the poor and unemployed in rural areas. As the population pressure grows in the land-scarce and developing countries like India, the growth in the agricultural production cannot absorb the ever increasing rural labor force in agricultural employment. This leaves the rural non-farm sector in the form of rural SMEs to absorb those released from agriculture but not absorbed in the urban industries. Contributing more than 52% of the GDP and making available more than 75% of all labor force in India the rural sector is best poised for a rapid expansion in the small and medium industry arena. Keywords: Rural Entrepreneurship, SME, Agriculture, Globalization, virtual accessibility Introduction India has been steadily growing as an economic power in the past two decades and has been able to create the bare necessary infrastructure required to sustain this rate of growth. The connectivity to remote areas has been improved to a great extent both in terms of physical accessibility by road and rail and virtual accessibility in terms of telecommunications and information technology. Combined with this there is a steady growth in the education among the rural population including professional qualifications among rural youth. This presents the ideal situation for enterprises to spring in the rural areas where the cost of operation, labor and availability of raw materials is substantially cheaper as compared to urban parts of the country. large number of programs and schemes aimed directly at boosting entrepreneurial ventures in the rural parts of the country. National Agricultural and Rural Development Bank (NABARD): This is the nodal agency that provides almost three fourth of all the financial assistance allocated by the government towards uplifting rural enterprise. The Rural Small Business Development center (RSBDC): Sponsored by the NABARD this one its kind of a governmental initiative in the world. The center provides for managerial and technical support to the small and micro enterprises of the rural sector. It conducts training programs on rural entrepreneurship, skill up gradation, trainer training, awareness and counseling sessions across the country to enhance the productivity of rural SME units. National Small Industries Corporation (NSIC): This central

Government Agencies set up to Promote Rural Enterprises The government having realized the true potential of rural SME sector has initiated a

government agency is responsible for procurement and supply of indigenous as well as imported equipment and machinery on easy hire purchase terms for rural SMEs, distribute raw materials and export finished products of small and medium industries of the rural sector. Small Industries Bank of India (SIDBI): This is the primary agency that distributes direct as well indirect finance to all SMEs and coordinates the functioning of similar bodies under various schemes launched by the government from time to time. Rural and Women Entrepreneurship Development program (RWEDP): This agency aims at creating conducive business environment as well as build infrastructure and human capital which will aid the long term growth of small industries in rural areas. Scheme of Funds for Regeneration of Traditional Industries (SFURTI): This body has the main objective of making the traditional industries of rural India commercially viable. Most small, micro and cottage industries are covered in its agenda. District Industrial Center (DIC): Every district in the nation now has a DIC which is responsible for integrated administrative and financial help at the district level that shall help and facilitate the growth and development of rural SME. Government Schemes to Enhance Rural Entrepreneurship In order to keep up with the demand for rapid growth of rural SMEs the Ministry of

Micro, Small and Medium industries has initiated several benevolent schemes which are proving to be wonderful stimulus in this field. Entrepreneurship Development Institution Scheme Rajiv Gandhi Udyami Mitra Yojana (RGUMY) Performance and Credit Rating Scheme (Implemented through NSIC) Product Development, Design Intervention and Packaging (PRODIP) Khadi Karigar Janashree Bima Yojana for Khadi Artisans Marketing Assistance Scheme Obstacles for Rural Entrepreneurship Lack of Knowledge: There is a distinct lack of knowledge of entrepreneurial opportunities among the rural youth. The better educated and trained youth mostly leave for urban destinations in search of employment. Lack of Finance: Despite sustained efforts from the government there is a clear hindrance in obtaining capital to start a new venture in the rural areas. Non availability of adequate collateral security often mars the chances of rural youth in obtaining funds in time to set up their own venture. Lack of Skills: There is an acute shortage of trained manpower in the rural areas to commence small industries. Adequate facilities for vocational training are yet no available to the majority of the rural population. Management of accounts, handling of human

resources and many such other facets which are essential for running a successful enterprise are unheard of in most rural areas. Lack of Infrastructure: In many areas the road connectivity is a major impediment in setting up of rural enterprise. Infrastructure requirements such as cold storage facilities, rail transport, electricity, etc are yet to be developed to a level which will promote entrepreneurship in remote localities.

Finance Options for Rural SMEs As a direct result of the plethora of schemes and programs that have been launched by the government to encourage rural entrepreneurship in India, the financing of such a project is now easier than a similar venture in the urban areas. Gramin Banks, Local Cooperative Banks and all public sector banks have now been authorized by the RBI to finance project up to Rs 2 Crore under any of the above listed schemes and then obtain refinance for the same from NABARD and SIDBI. Additionally most of the finance schemes with pragmatic periods of moratorium to help the rural venture stand on its feet and become economically viable. There are many subsidies of these schemes which make them extremely lucrative options for starting a rural SME. Type of Rural Entrepreneurship in Demand The various types of sectors and enterprises currently witnessing a boom in the rural areas can be broadly classified under the following categories:

Agro Based Enterprises: These include direct sale or processing of agro products such as jaggery, sugar industries, pickles, oil processing from oil seeds, fruit juice, dairy products, spices, etc. Forest Based Industries: Such industries include wood products, bidi making, coir industry, bamboo products, honey, making eating plates from leaves. Mineral based Industry: Such industries include cement industries, stone crushing, red oxide making, wall coating powders etc. Textile Industry: These include weaving, spinning, coloring, bleaching. Handicrafts: Such industries include making of wooden or bamboo handicrafts that are local to that area, traditional decorative products or toys and all other forms of handicrafts typical to the region. Engineering: Small and medium sized industries to produce agricultural machinery, equipment for usage in rural areas etc. Services: There are a wide range of services including m0obile repair, agriculture machinery servicing, etc which are being undertaken under this category. Tourism: These activities including conduct of ethnic, eco and rural travels and tours by local operators. Role and Importance of Rural Entrepreneurship in Indian Economy: The development of rural entrepreneurs is a complex problem which can be tackled by the social, political and economic institutions.

The sooner they are established the better it would be for the entrepreneurial development in the rural sector and the economic growth of the country. 1. Provide employment opportunities: Rural entrepreneurship is labor intensive and provide a clear solution to the growing problem of unemployment. Development of industrial units in rural areas through rural entrepreneurship has high potential for employment generation and income creation. 2. Check on migration of rural population: Rural entrepreneurship can fill the big gap and disparities in income rural and urban people. Rural entrepreneurship will bring in or develop infrastructural facilities like power, roads, bridges etc. It can help to check the migration of people from rural to urban areas in search of jobs. 3. Balanced regional growth: Rural entrepreneurship can dispel the concentration of industrial units in urban areas and promote regional development in a balanced way. 4. Promotion of artistic activities: The age-old rich heritage of rural India is preserved by protecting and promoting art and handicrafts through rural entrepreneurship. 5. Check on social evils: The growth of rural entrepreneurship can reduce the social evils like poverty, growth of slums, pollution in cities etc. 6. Awaken the rural youth: Rural entrepreneurship can awaken the rural youth and expose them to various avenues to adopt entrepreneurship and promote it as a career.

7. Improved standard of living: Rural entrepreneurship will also increase the literacy rate of rural population. Their education and self-employment will prosper the community, thus increasing their standard of living. Conclusion: Keeping all the above factors in mind it can be safely assumed that commencing a rural SME venture is the ideal business idea in the current times. Factors such as easy and cheap availability of labor, simplified finance schemes and provision of government facilities for marketing of the finished goods or product will make rural SMEs highly competitive. However there still exists a lack of infrastructure in terms of accessibility and storage facilities which restricts the full potential of the sector. The private sector has now initiated many cold storage chain facilities across most parts of the country which shall address this issue in a couple of years. References: 1. B.S. Rathore and S.K.Dhameja (1999) Entrepreneurship in the 21st Century, Rawat publication,Jaipur and Delhi. 2. Mookkiah Soundarapandian (2001) rural entrepreneurship: growth and potentials, Kanishka Publication, Tamilnadu. 3. T. S. Papola (1982),Rural industrialization: approaches and potential, Himalaya Pub. House. 4. T.Sankaraiah (1994) Problems and prospects of rural industries in India, Discovery Pub. House.

Emerging Trends in Indian Capital Market

Dr. Arvind Chaudhari (Research Guide), Associate Professor ,Nahata College Bhusawal Jalgaon Email- anc.chaudhari@gmail.com, Mob.9422774839 Prof.Snehal Sashte (Research Scholar) Assistant Professor, Zeal Institute of Management &Computer Application Narhe, Pune-411041,E-MailSnehalsashte4@gmail.com, Mob-9730899922

Introduction: Capital Market plays a crucial and effective role in the economic development of a nation. It provides the financial resources needed for the long term and sustainable development of the different sectors of the economy. The Zone of the activities in the capital market is dependent partly on the savings and investment in the economy and partly on the performance of the industry and the economic in general. During preseventies the average Indian investor used to put all his/her savings in bank and unit Trust of India only the rich and the daring invested in the market. Capital market were quite inactive in sixties and seventies and the private corporate sector dependent on their retained earnings and loan funds from the government owned financial and investment institutions for their expansion and growth. In the early independent era, the capital market virtually remained passive players in the process of economic development and was unable to mobilize the financial resources of the nation in required volume. It was in the late 1970s that the average Indian thought of risking his money in the stock market. The recent years witnessed significant reforms in the capital market. it is well known that trading platform has become

automatic, electronic, anonymous, order driven, nation widened screen based. Uniform settlement cycle of Monday to Friday are on all stock exchanges which was recommended by the SEBI and also inform listing procedures were adopted and coordinated by an all Indian Listing Authority since 2004. What is Capital Market The Indian securities market consists of primary (new issues) as well as secondary (stock) market in both equity and debt. The primary market provides the channel for sale of new securities, while the secondary market deals in trading of securities previously issued. The issuers of securities issue (create and sell) new securities in the primary market to raise funds for investment. They do so either through public issues or private placement. There are two major types of issuers who issue securities. The corporate entities issue mainly debt and equity instruments (shares, debentures, etc.), while the governments (central and state governments) issue debt securities (dated securities, treasury bills). The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risk and return. A variant of secondary market is the forward market, where securities are traded for future delivery and payment in the form

of futures and options. The futures and options can be on individual stocks or basket of stocks like index. Two exchanges, namely National Stock Exchange (NSE) and the Stock Exchange, Mumbai (BSE) provide trading of derivatives in single stock futures, index futures, single stock options and index options. Derivatives trading commenced in India in June 2000 A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer

than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.

capital market

primary market

secondary market

equity

Debt

Securities Exchange

The capital market has two interdependent and inseparable segments the new issue market (primary market) and the stock market (secondary market). The primary market provide the channel for creation and sale of new securities while the secondary market deals in securities previously issued. The securities issued in the primary market are issued by public limited companies or by government agencies. The resources in this kind of market are mobilized either through the public issue or through private placement route. It is a public issue if anybody and everybody can subscribe for it whereas if the issue is made available to select group of persons it is termed as private placement. There are two types of major issuer of securities the corporate entities who issue mainly debt and equity instrument and the government (central as well as state) who issue debt securities and treasury bills. The secondary market or the stock exchange enables participants who hold securities to adjust their holding in response to changes in their assessment of risk and returns. Once the new securities are issued in the primary market they are traded in the stock market or the secondary market. The secondary markets operates through two mediums namely the over the counter (OTC) market and the exchange traded markets. Most of the trades in the government securities are in the OTC markets. All the spot trades where securities are traded for immediate delivery and payment take place in the OTC market. The other option is to trade using the infrastructure provided by the stock exchange. The market has essentially three categories of participants viz. the issuer of securities, the investor in the securities and the intermediaries:1) The issuer is the borrowers who issue securities to raise funds.

2) The investors who are surplus savers deploy their savings by subscribing to these securities. 3) The intermediaries are the agents who match the needs of users and suppliers of funds for a commission. There are a large variety and number of intermediaries providing various services in the Indian securities market. This process of mobilization of resources is carried out under the supervision and over view of the regulators. Recent Trends in Indian Capital Market The recent years witnessed significant reforms in the capital market. it is well known that trading platform has become automatic, electronic, anonymous, order driven, nation wideand screen based. Shouting and gesticulations have yielded place to punching & clicking. speed & efficiency are the hallmark of the current system. Weekly settlement system was enforced on all stock exchanges uniformly which was followed by Daily Rollover System in selected scrips from 1999. Trade guarantee fund and investor protection fund were maintained in many stock exchanges. Enforcement of a code of corporate governments, quarterly publications of results and better disclosures were insisted upon the listed companies. Uniform settlement cycle of Monday to Friday are on all stock exchanges was also recommended by the SEBI and inform listing procedures were adopted and coordinated by an all Indian Listing Authority since 2004. BSE went over to electronic trading system in January 1995, called BOLT, BOLT System was enlarged and more centers in India got connected for internet trading. NSE has also planned for overseas centers for trading purposes. Badla system was streamlined and strengthened with better surveillance in selected scrips. Volumes of trading and liquidity had

increased due to electronic trading. This trend was facilitated by Demat form holding shares, quicker weekly settlements and clearing supported by a powerful regulatory system, operated by SEBI. There have been significant changes in the securities market in India as well as the international arena during the last one year, this is mainly due to the reforms/ initiative taken by the government and the regulators, in the arena of clearing and settlement reforms in the payment system have been initiated by RBI viz. real time gross settlement (RTGS) has been introduce by RBI to settle inter bank transactions online at real time mode. The development in the securities market provides the necessary imputes for growth and development and thereby strengthens the emerging market economy in India. The objective of recent trends in the securities market is as follows:1) To improve market efficiency. 2) To enhance transparency. 3) To prevent unfair trade practices. 4) To bring the Indian capital market upto the international standard. The recent trends that have taken place in the Indian capital market during the recent years can be summarized as follows:1. Repeal of capital issue control act:Capital issues control act 1947 was repealed and the office of controller of capital issue (CCI) was abolished with effect from May 29, 1992. Companies are now free to approach to capital market after clearance by SEBI. Today SEBIs main stress is to provide self regulatory systems in capital markets. It has issued guidelines for free pricing of securities for certain categories of company by virtue of which companies can ask for any amount of premium. SEBI guidelines intend to give only direction and certain requirements with reference to disclosure and investor protection. SEBI has advised that premium based on CCI formulate

should be given in the prospectus. The philosophy of free pricing guidelines of SEBI is that the issues can price their shares according to their wish. But they have to give a justification as to the price and give sufficient disclosure in the prospectus. With the abolishment of CCI act in May 1992, governments control over issue of capital, pricing of the issue, fixing of premium and rates of interest on debentures etc.ceased. 2. Rolling Settlement System:The recent reform of SEBI with regards to stock market includes interalia, the strengthening of the rolling settlement system which was done during 2000-01. Bulk of reforms during 1996 to 2000 encompasses the electronic trading system, clearance and settlement system. Uniform trading cycle, clearance an settlement through Demat system, without the need for physical certificates, weekly settlement and T+2 settlement, setting up of trade guarantee funds for ensuring settlements, customer protection funds, quicker settlements, internet trading, broker website trading, etc. are some of the examples of the recent stock market reforms, affected by SEBI. 3. Trading Cycle:An investor today need not wait, with his fingers crossed, for a fortnight or more, for getting crossed cheques or crisp notes for the sale proceeds of his securities. The trading cycle has been shortened progressively from T+5 to T+2 days with effect from April 1, 2003. This shortening of the cycle has been done in a phased manner but in a rapid succession from T+5 to T+3 to T+2, all in a matter of two years. 4. CDSL: Central Depositary Services Limited :The CDSL is promoted by Bombay Stock Exchange. The SEBI has

mandated that the major stock like NSE, Delhi, Ahemdabad and Calcutta should be connected to CDSL. The clearing member of this exchanges should open account with CDSL to facilitates settlement of trade in DEMAT form. This is in addition to NSDL, setup mainly by NSE 5. Demat Form Of Trading (Demutualization):Majority of scrips are put in a Demat form trading in a last few months during 1999 to 2004.nearly 90% of the trade is already in Demat form, with nearly 600 scrips in compulsory Demat trading as at end may 2000. By 2005 all scrips which are traded are in Demat form of trading with T + 2 settlements. . Inconvenience of physical custody and transfer, medium of intimating change of address and problems of bad delivery, late delivery, non delivery and the risks of forgery and frauds have virtually disappeared or shall I say - have been dematerialised! The benefit is relished but not the cost. We should bear in mind the maxim no cost, no benefit. There is no free lunch in this world. Still, there is no denying the fact that there could be a possibility for reduction in the cost; such possibilities are explored. 6. Globalization of the capital market:Indian capital market is getting increasingly integrated with the rest of the world .Indian companies have been permitted to raise resources from abroad through issue of (ADRS) American Depository Receipts, Global Depository Receipts (GDRS), and Foreign Currency Convertible Bond (FCCBS). Further foreign companies are allowed to tap the domestic stock market; Indian companies are permitted to list their securities on foreign stock exchange by sponsoring ADR/GDR issues. NRIS and overseas

corporate bodies (OCBS) are allowed to invest in Indian companies. The investment by foreign institutional investors (FIIS) enjoys full capital account convertibility. Finally the trading platform of Indian exchanges is now accessed through the internet from anywhere in the world. 7. Electronic Form Of Trading :Globalization of stock exchange is now on way. The electronic age has come to the stock market. Nearly 100% of all transaction is executed through electronic media online trading system. There are 23 exchanges in India and all of them follow a systematic settlement period. The number of cities covered by NSE and BSE electronic network would have crossed 1000 mark, by end 2000. More and more brokers and subbrokers are getting into the internet trading system. Corporate bonds and Government Securities used to be traded via telephone exchange. A beginning has been made for their trading on the stock exchange now. As is natural, the weaning takes time!

8. Internet Trading (e-trading) The SEBI have allowed e-trading and brokers would rush to the web-sites and trading through web sites would increase. On the internet, one would be able to trade instantly and transparently from any part of the world. Today, a trading member need not wend his way to the Tower in Dalal Street, Mumbai or to any stock exchange building elsewhere; he can comfortably sit at his computer terminal and execute the order. Laptops, palmtops and hand mobiles, in fact, challenge the relevance of the brick and mortar. 9. Electronic Funds Collection Under this system, the broker get their fund directly credited to their account and the client can in turn get their accounts credited or debited for the net

fund to flow across the country. This facilitates quicker payments, improves the liquidity position of brokers and gets funds one day after the pay out day to obviate possible defaults or cash-out positions of brokers and subbrokers. The other facility include basket trading, trading in index fund, voting and non voting share, tracker share and portfolio tracker. Tracker shares refer to the separate division shares of a company such I.T. Divisions WIPRO or TATAs. Portfolio trackers for valuation website, company analysis and M.I.S. on the companies in ones portfolio are presented through the website. There will be automatic borrowing and leading facilities, institutionalized security leading, automatic financing or margin buying and a host of other facilities on the stock exchanges.

Mutual Funds are allowed to invest in foreign securities up to a limit. The GDRs (Global depository receipts) and ADRs (American depository receipts) of Indian companies are well received in foreign market and are traded freely in foreign stock markets. 11. Preference for Mutual Fund :Many public sector banks, LIC & GIC came out with their mutual funds which have helped the new issue market as well as secondary market. In addition to the UTI these mutual fund started mobilizing funds for investment in the capital market since 1987. it appears that more & more people prefer mutual fund as their investment vehicle. This change in investor behaviour is induced by the evolution of a regulatory framework for mutual funds, tax concession offered by government and preference of investor towards mutual fund. SEBI has now facilitated transaction in Mutual Fund through stock exchange for getting benefit of investing in Mutual Fund through stock exchange. 12. QIP: Qualified Institutional Placement Qualified institutional placement (QIP) is a capital raising tool, primarily used in India, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a Qualified Institutional Buyer (QIB). The Securities and Exchange Board of India (SEBI) introduced the QIP process through a circular issued on May 8, 2006, to prevent listed companies in India from developing an excessive dependence on foreign capital. The corporate governance and corporate performance do reflect and get reflected in the conditions of capital market. As a market regulator

10. Foreign listing As the country open upto foreign operations many more Indian companies got listed on foreign stock market of London, New York, NASDAQ, etc. Internet and online trading facility is created and selected foreign centers. The regional stock exchanges and local trading became gradually redundant in the context of global trading. Slowly foreign companies would be listed on the Indian Exchanges and trading would take place in such foreign shares in India. Indian capital account controls are slowly getting dismantled and liberalized. Free flow of FDI funds into India and liberal borrowing facilities for Indian Companies abroad tended to globalize Indian markets. Indian

and protector, SEBI is concerned with corporate governance practice on an ongoing basis. According to the Economic Intelligence Unit Survey of 2003 regarding corporate governance across the countries, Top of the country class, as might be expected, was Singapore followed by Hong Kong and, somewhat surprisingly, India. It is significant to note that Singapore and Hong Kong claiming the top positions, was not a matter of surprise, but India coming as third, surprised the world! It shall be our collective endeavour to eliminate the surprise element. As part of its endeavour towards continual improvement, SEBI has got corporate governance code and practice reviewed, by Narayana Murthy Committee. The Committees recommendations for refinement were evolved through consultative process, transparent deliberations and democratic approach.

glance of IPOs in the Indian primary market during Q1'07 & Q1'08 in India. Table 2: IPOs during Q1'07 & Q1'08 in India: Period IPOs IPOs Numbers Amount (Rs. In Crores) Q1'07 April 4 703 May 6 456 June 10 11,914 Total 20 13,073 Q1'08 April 1 14 May 4 307 June 8 1,572 Total 13 1,509 (Source: www.epwrf.res.in/upload/Current_Statistic

13. Initial Public Offering (IPO) Initial Public Offerings (IPOs) or Initial Issues refers to Issue of shares for the first time to the public, either after incorporation or conversion of private limited company to public limited company. In other words, an offer by unlimited company to the public for the first time to get listed its securities in stock exchange. Recent Trends (Impact of recession on IPOs) In the last quarter of FY 2007-08, several large equity offerings, including those from reputable business houses, have struggled to hit their targets. India's stock markets have been volatile, reacting to fears of a widening global credit crunch and fears of a U.S. recession. Let's have a

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IPOs witnessed a sharp decline in collections during the June 2008 quarter. Corporate raised just over Rs 1,509 crore from IPOs, indicating a fall of 88.45% from the year-ago levels. The data on number of IPOs that were issued are not encouraging either. Fund raising by Indian companies has seen a sharp drop in the last quarter of financial year 2007-08. This is evident from an analysis of data presented in the above table.

Impact on global financial assets The full fallout \ recession from the credit market volatility of 2007 remains to be seen. But over the longer term, the volume of global financial assets (the value of all bank deposits, government debt securities, corporate debt securities, and equity securities) will continue to expand. Over the past 25 years. This source of growth was shaky by 2007. Conclusion: The recent years witnessed significant reforms in the capital market. It is well known that trading platform has become automatic, electronic, anonymous, order driven, nation wideand screen based. In terms of different parameters such as operational and systematic risk management, settlement system, disclosure norms and accounting standards the Indian capital market is at par with the best in the world. Following the implementation of reforms in the securities market during the last decade Indian stock market has stood out in the world, ranking as well as in the developed and emerging markets. The development of the capital market continuous coupled with an effective regulatory framework and thus the capital market has come up to global standards. Some are given below:The transaction has become user friendly. The rolling settlement system which was done during 2000-01. It reduces the trading cycle T+2. Demat form of trading has reduced the cost & time. The volume of trading & liquidity has increased because of dematerialization of shares.

After the crunch of U.S. Recession, IPOs witnessed a sharp decline in collections during the June 2008 quarter. References: V.A.Avadhani (2008), investment management, Himalaya Publishing House, 7th revised edition. V.A.Avadhani (2009), securities Analysis & Portfolio Management, Himalaya Publishing House. B. Bhatia (1976), new issue market in India, Vora Publication, Bombay 1st edition. Bharati V. Pathak (2009), the Indian Financial System, second Edition. National Stock exchange of India Limited, vol VIII 2005. http://www.sebi.govt.in/chairmanspeec h/trends.html, dated 20/01/2011 http://en.wikipedia.org/wiki/Capital_m arket, dated 19/01/2011 http://www.articlesbase.com/marketing -articles/recent-trends-in-indian-andglobal-capital market691800.html#ixzz4xDOh36XG,dated 2 3/01/2011

Employer Branding, An innovative concept for attracting entry level professionals in Indian IT Companies
DeepaKarandikar Research Scholar, Department of Management, JJT University kdeepa01@gmail.com; Pune, India Dr. Pradeep Kumar Sinha Research Guide, Department of Management, JJT University and Dr. Reecha Ranjan Singh, HOD Management, JJTU, Rajasthan Abstract Great IT organizations are built with talented, motivated and committed employees. Attracting, retaining and engaging the best talent are all critical success factors for these high growth IT companies. Attracting the best talent used to be primarily about compensation, but times and employment market dynamics have changed. Now it is increasingly about the total employment proposition - what anIT company has to offer in order to attract, motivate, engage and retain the best talent. This includes work / life integration, career growth opportunities and a belief in the companys mission or love for the profession. Despite high unemployment rates in the IT industry, finding young, qualified and skilled talent - especially for entry level specialized roles - continues to be a challenge even for the best IT companies. Entry Level IT Professionals Top IT companies regularly develop innovative ways to access fresh talent. Many have found that systematic recruiting practices for entry level employees are particularly effective, such as gaining access to future college graduates by establishing a brand at the school and/or the faculty level in order to identify the best people. Others specifically go where other companies are not - finding top talent in schools which might be below the popular radar. Some IT companies hire employees in groups, putting new hires through training programs and ultimately offering full-time positions to the best of the class. Various programs aim at identifying high potential employees at the entry level and junior cadre and groom them for leadership at the middle management level supported by learning deliverables, mandatory learning courses, knowledge sharing sessions, Long Cycle Program for fresher's with non-IT background, fast track program for fresher's with IT background, Just-in-time training, Higher education schemes, Campus Connect, E-learning programs each employee is empowered to plan a desired career path or option. The Indian IT organizations are securing the best talent by sharpening the way they market themselves to recruits by applying branding techniques to recruitment. These Companies are as rigorous or precise at branding themselves as employers as they are at branding their products and services. Key words: Employer branding, Long Cycle Program, Just-in-time training, Campus Connect, E-learning

1. Introduction Employer branding is a targeted, long term strategy to manage the awareness and perceptions of employees and related stakeholders with regards to a particular organization. The employer brand puts forth an image showing the IT organization as a good place to work. It communicates the identity, a package of functional, economic and psychological benefits of an organization to the employees. It is the essence of what the organization stands for and the fundamental nature of the organization. Essentially, it is the process of placing an image of being a "great place to work" in the minds of existing and prospective employees. Employee Value Proposition (VSP) for an entry level professional is influenced by the organization's values, culture, leadership, environment, and talent and reward programs. Employment branding is also internally and externally promoting a clear view of what makes an organization differentand desirable as an employer: a. Employer branding for attracting and retaining the entry level professionals from Generation Next: 1. Establish an image of the employment experience. 2. Create synergy with consumer brand, align, and promise to customer with promise to entry level. 3. Clearly state "what's in it for me" to potentialapplicants. 4. Entice the right candidates to apply for the job.

b. Employer Dimensions:

Attractiveness

1. Interest Value: The extent to which an entry level professional is attracted to an Employer because of theexcitement and creativity of the work environment. 2. Social Value: Attraction based on a collegial work environment with good team atmosphere. 3. Economic Value: Attraction based on salary and benefits. 4. Development Value: Attraction based on recognition of work and career enhancing opportunities 5. Application Value: The employees' ability to value what they have

learnt to teach others and interact with customers in a way that is positive and humanitarian. Figure 1: Employer Brand Key Components (Source http://www.corporateeye.com/blog/2008/05/what-is-employerbranding/) Great IT organizations are built with talented, motivated and committed entry level employees. Attracting, retaining and engaging the best talent are all critical success factors for the

high growth IT companies. Attracting the best talent used to be primarily about compensation, but times and employment market dynamics have changed. Now it is increasingly about the total employment proposition what an IT organization has to offer in order to attract, motivate, engage and retain the best talent. This includes work / life integration, career growth opportunities and a belief in the organizations mission or love for the profession. Despite high unemployment rates in the IT industry, finding young, qualified and skilled talent - especially for entry level specialized roles - continues to be a challenge even for the best IT companies. 2. Importance of Employer Branding: a. Entry Level IT Professionals Top IT companies regularly develop innovative ways to access fresh talent. Many have found that systematic recruiting practices for entry level employees are particularly effective, such as gaining access to future college graduates by establishing a brand at the school and/or the faculty level in order to identify the best people. Others specifically go where other companies are not - finding top talent in schools which might be below the popular radar. Some IT companies hire entry level employees in groups, putting new hires through training programs and ultimately offering full-time positions to the best of the class. Various programs aim at identifying high potential employees at the entry level and junior cadre and groom them for leadership at the middle management level supported by learning deliverables, mandatory learning courses, knowledge sharing sessions, Long Cycle Program for fresher's with

non-IT background, fast track program for fresher's with IT background, Justin-time training, Higher education schemes, Campus Connect, E-learning programs each entry level employee is empowered to plan a desired career path or option. The expectation of the potential candidates today is that employer branding has become more of need, as most Entry level professionals are looking at relatively friendly IT organizations where they can have meaningful employment. As employer branding is closely associated with work culture, hence through right branding it may promote and reinforce the corporate positioning amongst its entry level employees. More companies are now focusing on

CSR International career Quality training Good location Innovation Quality products / services Strong values Future prospect Interesting job content Strong image Strong management Financial health Good work-life balance Pleasant working atmosphere Job security High salary 0 5 10 15

Figure 2: The most important factors which influence an entry level professional while choosing an IT company (Source -

MafoiRandstad survey)

Award

research

Employer branding to attract entry level employees and keep them engaged. There isa direct correlation between an effective employer brand and achievingbusiness success. It helps in retaining entry level employees, increasingemployee satisfaction, attracting job to the candidates, and motivating entry level employeesin their work, which leads to excellent business gains. The purpose is to usethe internal brand as the seedbed for aligning their people programs todeliver significantly improved business results. Employer branding has certainly develop into an important management tool. It is unquestionably an approach that companies are starting to implement to stay ahead and keep the finest individuals for the jobs. b. Five reasons that make employer branding important 1. Lack of capable workforce: There is as well an apparent swing in students' inclinations moving from technical degrees towards nontechnical degrees. 2. More with less: By appropriately communicating the reality of the work environment, companies are more likely to catch the attention of fresh talent that fits their organizational culture, 3. Development and productivity: Appointing as well as retaining top entry level performers is necessary for development and to sustain a competitive edge. 4. Reputation: Entry level professionals would like to work for companies with good reputations; they usually consult family members, friends or associates for suggestion and

support while making a decision regarding which employers to think about. 5. Strength: Being an attractive employer offers an IT organization additional negotiating authority, as recruits would like to work for them more than anyone else, regardless of income levels. 3. IT Organizations who have effectively conceptualized Employer Branding to gain Competitive advantage from entry level professionals It is evident from some of the recent initiatives taken by IT organizations to make the workplace moreemployerfriendly and implement development concepts like spiritualquotient and value-building. Some companies have gone even further andappointed internal branding consultants, targeted to have a betterrelationship with their entry level employees. Texas Instruments, whosebrand mantra is conscious and consistent, which gets reflected in all theiractivities, be it company journals, awards or regular meetings. HCL Comnet,whose brand value signifies exuberance, has developed a Force of Onecampaign that signifies innovative attitude and the ability to individuallymake a difference. Cognizant, whose employer brand is CelebratingWork, which gets reflected in its participative, empowering and transparentwork environment. Infosys has done it with its `middle-class turning into millionaires', Wipro, is known as a `take-off point for entrepreneurs'

TCS is known as a `training ground for freshers'.

The events like Osmosis and Neuron at Mind Tree are effectively providing a knowledge sharing and creating platform to the entry level employees where they brainstorm and share their ideas. This is one of the collaborative ways of knowledge creation and sharing. Though none of them attempted employer branding as a well-thought plan, entry level employees began to associate these takeaways with the respective companies. Corporates have realized the need for paying attention to what mattersto entry level employees, and then delivering on that promise. Hence the alluring optionto become the employer of choice to deliver a wide range of careeropportunities, and the ability to develop top professional talent deliveringwork and to retain them voluntarily have become the priority for theorganizations. Further by introspecting the employment advertisement of IT companies it is observed that in the past the fresher employment advertisements were justshowing the job description of the vacancy, however the focus in the recentyears have shifted to create a powerful image for the organization as adream place to work. Hence when the job of the entry level employees across the IT companies is more or less the same, hence the differentiating factor of one IT organization from another is largely its employer brand image.Hence IT companies intend to work on the perception mapping and of the fresh potential talents and to seek for innovative strategies to develop theiremployer brands. The challenge lies in making those brand dynamics asemployer deliverables. 4. Conclusion

Employer branding can help to create a nurturing culture which will enable entry level professionals to give of their best, which in turn supports the organization in delivering its brand promise. It will also attempt to justify the initiatives to fit inclosely with the organizations overall brand strategy. This will further highlightthe innovative methods of personnel market research to control and targetthe employer attractiveness of IT companies. Preference matching can be usedto determine the specifications potential applicants have for attractiveemployers and to define the selection and decision-making process of applicants as realistically as possible. The companies which are beginning to dip their toes into the Employer branding pool need to be very careful to not oversell their companies. Employer branding is a new approach towards recruiting and retaining the best entry level talent within an employment environment that is becoming increasingly competitive. The Indian IT organizations are securing the best talent by sharpening the way they market themselves to recruits by applying branding techniques to recruitment. These Companies are as rigorous or precise at branding themselves as employers as they are at branding their products and services. References: 1. Bhattacharya Prasenjit (2009) "Living by Values www.humancapitalonline.com 2. Berthon, P.Ewing.M and Hah, L.L Captivating Company: dimensions of attractiveness in Employer branding, International Journal of Advertising, 24(2), 151-172. 3. http://en.wikipedia.org/wiki/Emplo yer_branding 4. Edwards, M. R., (2010), An integrative review of employer

branding and OB theory, Personnel Review Vol.39, No.1, pp.5-23 5. Rosethorn, H (2009) the Employer Brand Keeping Faith with the Deal, Gower, Farnham. 6. MafoiRandstad Award research survey 7. http://www.corporateeye.com/blog/2008/05/what-isemployer-branding/ *******

Green Banking: A Unique Social Responsibility of Commercial Banks in Shimoga City Miss. Kavitha Crasta
INTRODUCTION CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity. At present, the world over, there is an increasing awareness about Corporate Social Responsibility (CSR), Sustainable Development (SD) and Non-Financial Reporting (NFR). Consequently, there is a concerted effort among all types of organizations, to ensure that sustainable development is not lost sight of, in the pursuit of their respective goals - profit making, social service, philanthropy, etc. CSR entails the integration of social and environmental concerns by companies in their business operations as also in interactions with their stakeholders. The contribution of financial institutions including banks to sustainable development is paramount, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity. CSR practices by major banks in India CSR IN ICICI BANK ICICI Bank Ltd (NYSE:IBN) (www.icicibank.com) is India's largest private sector bank and the second largest bank in the country, offering a wide range of banking products and financial services to more than 25 million corporate and retail customers. ICICI Bank views its Corporate Social Responsibility (CSR) initiatives as integral to its core mission of delivering value to its stakeholders. The Bank's CSR activities have taken three broad strategic directions: CSR through commercial activities, CSR in partnership with civil society and CSR through ICICI Foundation for Inclusive Growth. CSR IN HDFC BANK In keeping with the HDFC Group philosophy, Bank has always believed in making a difference to society at large. It integrate some of its Corporate Social Responsibility (CSR) initiatives with its banking operations, the Bank has started outsourcing some non-core back office operations to certain small semi-urban locations. Where relevant, the Bank coordinates its CSR activities with its microfinance and self help group (SHG) financing.

CSR IN IDBI BANK IDBI, the premier banking institution of the country, joins the exclusive club of Socially Responsible Corporate under Smile Foundations Corporate Social Responsibility [CSR] initiative. IDBI has come forward to join hands with Smile Foundation in social development initiatives. The bank has contributed 14 personal computers to Smile Foundation which have been utilized in four different projects being implemented through as many partners in Delhi and NCR. CSR IN UNION BANK OF INDIA The Bank fully realizes its social responsibility to improve the quality of life of the local community and society at large. The Bank has moved a step ahead in this direction. In order to pay a focused attention, the Board of the Bank has decided to set apart 1% of its annual public profits to undertake Corporate Social Responsibility Activities through its trust named Union Bank Social Foundation. Definition of Green Banking:Green Banking is like a normal bank, which considers all the social and environmental factors; it is also called as an ethical bank. Ethical banks have started with the aim of protecting the environment. These banks are like a normal bank which aims to protect the environment and it is controlled by same authorities as what a traditional bank do. There are many differences compared with normal banking, Green Banks give more weight to environmental factors, their aim is to provide good environmental and social business practice, they check all the factors before lending a loan, whether the project is environmental friendly and has any implications in the future, you will awarded a loan only when you follow all the environmental safety standards.

Defining green banking is relatively easy. Green Banking means promoting environmental friendly practices and reducing your carbon footprint from your banking activities. This comes in many forms 1. Using online banking instead of branch banking. 2. Paying bills online instead of mailing them. Opening up accounts at online banks, instead of large multi branch Banks GROWTH OF GREEN BANKING The most important themes of twenty first century are the Environmental protection and sustainable ecological balance and it become an important issue that must be considered by all functional areas including banking. Green banking involves environmental and social responsibility. This word is new in Indian banking and it appeared in 2009 when there were concern on environment conservation and it was realized that banks can play a big role in this movement. Green Banking encompasses a wide variety of banking services. The banks are providing finance to primary metallurgical industries, paper and pulp, pesticides Insecticides, fertilizers, chemical / pharmaceuticals, textiles etc and bank may play a big role by scrutiny of investment projects from the environmental angle. Banks are now started to obtain NOC from respective state pollution control board. Many banks are promoting online banking services as a form of green banking. Benefits of online banking include less paperwork and less driving to branch offices by bank customers. Green banking also reduces the expenditure of bank and branch by minimizing the use of paper work and mailing fees. Thus green banking not only important for environmental point of view

but also mitigate the credit risk, legal risk and reputation risk. Following are the few banks who have adopted green banking in their banking business: RBI-CENTRAL BANK OF INDIA RBI is very attentive on this issue and notified all commercial banks on the issues of CSR, Sustainable development and non-financial reporting and advised all banks must incorporate these issues in their banking business. Though RBI has advised but only few banks have started green banking. In-spite of all instructions by RBI, regulator Indian banking is far behind than global counterparts. 2020. The details of these banks are as under: STATE BANK OF INDIA SBI has launched green banking policy and set up windmills in Tamil Nadu, Maharashtra and Gujarat to generate 15 MW power. This is the first bank in India which is in green banking and promoting green power projects. SBI has launched Green Housing or Green Home project to support projects those will be environment friendly. In this scheme bank offer various concessionsreduced margins, lower rate of interest and zero processing fee. ICICI BANK ICICI bank has made tie up with Bombay Natural History Society to sensitize projects related with wildlife biodiversity, projects suiting environment. Bank is offering 50 % concession on fuel efficient car models. Bank has also assisted a company in the development of eco-friendly airconditioner, these will consume only 35 % power based on compressor based technology. INDUSIND BANK

IndusInd bank has installed first ATM based on solar power at Mumbai. Bank has green banking under name Hum Aur Hariyali and also prepared Green Office Manual. UNION BANK OF INDIA Union bank of India has decided to undertake an electrical energy audit annually. Bank has also installed solar water heaters at various facilities. REVIEW OF LITERATURE Suresh Chandra Bihari and Sudeepta Pradhan (2011) have attempted to map the corporate social responsibility practices of major players in the Indian Banking and found that CSR has positive impact on the performance and image of the bank. Their stud has reflected that due to increase of CSR activities among Indian banks, the work done for society has passed to corporate and enhances their value. Nishi Sharma (2009) has studied the CSR in Indian Banking and said that in the developed countries have incorporated CSR in their annual budget but in the developing countries it is under root and it must be grown for the benefit of communities and for environment. This CSR will lead to sustainable development and performance will increase in the long run. She concluded that due to absence of stringent compliance and regulations Indian banking has not adopted the CSR in full sprit. But some of banks have adopted CSR as marketing tool to increase loyalty of customers. She has analysed the CSR practices and its reporting in the Indian Banking. Pravakar Sahoo and Bibhu Prasad Nayak (2008) have studied that in a globalised economy, the industries and firms are vulnerable to stringent environmental policies, severe law suits or consumer boycotts. Since banking sector is

one of the major stake holders in the Industrial sector, it can find itself faced with credit risk and liability risks. Further, environmental impact might affect the quality of assets and also rate of return of banks in the long-run. Thus the banks should go green and play a pro-active role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems. Objectives and Methodology:The study is based on proper methodology which comprises wide discussion with the selected Bankers, industrialists, economists, environmentalists and academicians. The main objectives of the research work are: 1. To study concept of 'Green Bank'

2. To identify the steps necessary to adopt Green Banking 3. Demographic study of Shimoga City for banking 4. Awareness of bank customer about green banking RESEARCH METHODOLOGY Both primary and secondary data has been used in the study. Primary data is collected with the help of the questionnaire from those 100 customers of both private and public banks in Shimoga city. Secondary data are used in the study in the form of books, journals and internet related the retailing. Exploratory and analytical method is followed in the study. GREEN BANKING AT SHIMOGA CITY Data was collected from 100 sampled bank customer and their responses were analyzed as per table below:

DEMOGRAPHIC PROFILE TABLE 1.1: GENDER PROFILE OF SHIMOGA Gender Public Frequency Male Female Source; Field Survey Table 1.1 shows that out of 100 customers 73 are males and 27 are females. This shows that 73of male Shimogas are having their bank relationship while only 27 female Shimogs have bank relationship. The banking at Shimogas is male dominate one. Private Banks are the favorite of Male Shimogas.Only 26%of Females banking with Private Banks. 30 20 % 41 74 Private Frequency 43 07 % 59 26 Total Frequency 73 27 % 100 100

TABLE 1.2: AGE PROFILE OF CUSTOMERS Age Public Frequency Below25years 25-35 yr 35-45 yr 45-65 yr Above 65 yr Source; Field Survey Table 1.2 shows that only43% respondents below 25years having their accounts in Private Banks. But the respondents between 35-45 age groups having highest relationship with Public banks, and 40 respondents in Private Banks. Above table also shows that maximum of respondents having bank relationship with Publics banks and less in Private sectors. 03 05 30 08 04 % 43 45 43 100 100 Private Frequency 04 06 40 % 57 55 57 Total Frequency 07 11 70 08 04 % 100 100 100 100 100

TABLE 1.3: RELIGION PROFILE OF CUSTOMERS Religion Public Frequency Hindu Muslim Others Source; Field Survey Table 1.3 shows that 90% of Hindu is having bank account while only 6% of Muslims are having bank account. 37 % Hindus are banking with private banks while Muslims (70%) are only banking with PSBs. 66% of other religion such as Sikh, Christians are mainly banking with PSBs 45 04 01 % 56 57 8 Private Frequency 35 03 12 % 44 43 92 Total Frequency 80 07 13 % 100 100 100

TABLE 1.4: EDUCATION PROFILE OF CUSTOMERS Education Public Frequency Senior Secondary Graduate Post Graduate Professional Illiterate Source; Field Survey Table 1.4 shows that more than 90% customers are well educated and belong to education background above senior secondary. 10 customers are post graduate and out of these customers 50% customers are dealing private banks. While equal number of post graduate customers are . TABLE 1.5: OCCUPATION PROFILE OF CUSTOMERS Occupation Public Frequency Salaried Self-Employed Professional Business Retired House-wife Source; Field Survey Occupation is a predominant factor that reveals the customers social class, life style and willingness to buy & ability to buy because it provided income which influences the purchases capacity. Table 1.5 shows that majority of customers belong to three category viz. Salary, professional and business. 85 bank 40 01 03 03 01 02 % 47 50 60 75 50 100 Private Frequency 45 01 02 01 01 % 53 50 40 25 50 Total Frequency 85 02 05 04 02 02 % 100 100 100 100 100 100 banking with PSBs. Customers who are senior secondary are 100% dealing with PSBs. 85 respondents from both PSBs and Private Banks are graduates. All respondents from professional background having their accounts in PSBs but not in private banks 01 40 05 04 % 100 47 50 100 Private Frequency 00 45 05 % 53 50 Total Frequency 01 85 10 04 % 100 100 100 100 -

customers are salaried one and 5 from professional occupation. Only 4 customers are from business occupation. Only 2% of housewives have their bank account. 45% salaried customers are

maintaining their salary account in private banks followed by PSBs (40%). selfemployed customers are mainly dealing with PSBs followed by private banks.

TABLE 1.6: INCOME PROFILE OF CUSTOMERS Annual Income Public Private Frequency Less than 1Lakh 1-2 Lakh 2-3 Lakh 3-5 Lakh Above 5Lakhs Source; Field Survey Table 1.6 shows 67% customers having their relationship with PSBs and that is 33% with private banks. In Shimoga city it shows that more number of customers having salary between 1-2 lakhs having 20 22 07 01 % 67 42 54 20 Frequency 10 30 06 04 % 33 58 46 80 -

Total Frequency 30 55 13 05 % 100 100 100 100 -

their relationship with Private Banks which is less in PSBs. Only few respondents having their accounts in both the banks whose annual income is between 3-5 laths.

TABLE 1.7 GREEN BANKING @SHIMOGA CITY Name of activities Public Frequency Green Banking Finance Traditional Banking Source; Field Survey Green Banking Finance: Table 1.7 shows that there is negligible awareness about green banking products and services. Even though number of banks have introduced Green banking but still very less percentage of customers are utilizing such benefits. Only 18% have properly utilizing such benefits in both PSBs and in Private Banks and remaining 82%are following the traditional method of banking only. 10 % 56 Private Frequency 08 % 44 Total Frequency 18 % 100

40

49

42

51

82

100

Steps in Green Banking:-

From the empirical study, it is found that following are some of the steps that can be taken for going green in banking: 1. Online banking is the developing concept in young and corporate India. Online banking helps in additional conservation of energy and natural resources. Banks should create awareness among their customers about the need of on line banking because it creates savings from less paper, less energy, and less expenditure of natural resources from banking activities. Customers can save money be avoiding late payments of fees and save time by avoiding standing to queues and paying the bill from home online. 2. Customers can check their accounts on ATM or special touch screens in the banks. This can be called as green checking of account. Using a green checking account helps the environment by utilizing more online banking services including online bill payment, debit cards, and online statements. Banks should promote green checking by giving some incentives to customers by giving higher rate of interests, waiver or discount in fees etc. 3. Not only some of the banks but all the banks should introduced Green Credit Card. The benefit of using a green credit card is that banks will donate funds to an environment-friendly non-profit organization from every rupee you spend on your credit card to a worthwhile cause of environment protection. 4. Bank should purchase recycled paper products with the highest post-consumer waste content possible. This includes monthly statements, brochures, ATM receipts, annual reports, newsletters, copy paper, envelopes etc. Whenever available, vegetable-based inks are used instead of less environmentally friendly oil-based inks.

5. Mobile banking is tricky. On the one hand, it is great to have the ability to check balances, transfer funds or pay bills from you phone. One the other hand, it saves time and energy of the customers. It also helps in reducing use of energy and paper of the bank. Most of the Indian banks introduced this paper-less facility.

CONCLUSION The study concludes that in-spite of a lot of opportunity in green banking, RBI notifications, Indian banks are far behind in the implementation of green banking only some of banks have initiated towards green banking. There is more scope for all banks and they can not only save our earth but can transform the whole world towards energy conscious. Banks must literate their customers about green banking and adopt all strategies to save earth and build banks image.

References 1. www.americanessays.com[ 2. Dr.Kailash Arun Rao Thombre the new face of Banking: green Banking Volume 1, Issue11[ 3. Green Banking: A unique corporate social responsibility of Indian banks International Journal of research in commerce and managementNo3 (2012) Issue No.1 (January) [[ 4. RBI Notification (2007) CSR in Indian banks 5. Bihari, Suresh Chandra and Pradhan, Sudeepta, (2011), CSR and Performance: The story of banks in India, Journal of Transnational Management, Vol.16,

Issue 1, pp 20-35 6. Carroll, A.B., (1991), Corporate Social Responsibility: Evolution of a definitional construct, Business and Society, Vol. 38, No.3, pp.51-57 7. Carroll, A.B. (1999), The pyramid of corporate social responsibility: towards the moral management of organizational stakeholders, Business Horizons.

Ban assurance practice in commercial Banks Dr.K.V.Giridhar Assistant professor Dept. of commerce and management, Sahyadri Arts and Commerce College, Shimoga-577203.Karnataka Email id:giridhar.malnad@gmail.com Mobile no: 9980647833 Nikki Kumari Research scholar Dept. of commerce and management, Sahyadri Arts and Commerce College, Shimoga-577203.Karnataka Email id:nikkisingh612@gmail.com Mobile no: 8050216342

Introduction A sound financial sector is the back bone of healthy economy. The insurance industry as a finance service is considered as one of the important segments in an economy for its growth and development. Life insurance corporation of India has a complete monopoly over the life insurance business for a very long period i.e., from 1956 to 1999, a period prior to the liberalization. In 1999, the insurance sector was opened for private participation to increase insurance penetration. The winds of liberalization and privatization have taught brought phenomenal changes in the financial sectors, particularly, in life insurance. Huge untapped population provides unlimited scope to life insurance companies for market expansion and premium growth .The success of life insurance companies largely depends on the effectiveness of distribution channel. The appropriate selection of channel of distribution helps to increase the volume of sales, brand promotion and brand building by providing quality services to the customers. In spite of presence of multiple distribution channel and wide range of new products; the performance of life insurance companies is unsatisfactory. Hence to improve insurance growth and market penetrative of life insurance business a new concept called Banc assurance was introduced by IRDA in late 2002 where insurance companies have tieups with different bank through joint

venture for selling insurance products. The concept of banc assurance based on winwin-situation where both banks and insurance get benefited with the business partnership. Table No. 1 Banc assurance in India Bank of Rajasthan, Andhra Bank, Bank of Birla sun life Muscat, Development Insurance Credit Bank, Deutsche Bank, Catholic Syrian Bank. Canara Bank, Lakshmi Aviva life Vilas Bank, American insurance Express Bank and ABN AMRO Bank HDFC Union Bank of India Standard life insurance Lord Krishna Bank, Citibank, Bank of India, Citibank, Allahabad ICICI Bank, Federal Bank, Prudential South Indian Bank and Punjab and Maharashtra co-operative Bank. Corporation Bank, Overseas Bank of India, LIC Vijay Bank, Bank of commerce. SBI SBI,BNP Paribas HSBC, United Bank of Tata AIG India. Syndicate Bank, Bajaj Allianz Centurion Bank, and Standard Charted Bank.

Presently, 23 life insurance companies are operating in India and all have tie-up with one bank or the other. Banc assurance is tie up of agreement or partnership between bank and insurance companies where banks get a fixed percentage or proportion of profit incentives depending on the volume of business. Reasons for assurance entering into Banc

faith over banks as compared to insurance companies. Reasons for Banc assurance in India The management of the new Indian operations are conscious of the need to grow quickly reduce painful start-up expense overruns. Banks with their huge networks and large customer bases give insurers an opportunity to do this efficiently. Regulations requiring certain proportions of sales to the rural and social sectors give an added impetus to the drive for banc assurance. Selling through traditional methods to these sectors can be inefficient and expensive. Tying up with a bank with an appropriate customer base can give an insurer relatively cheap access to such sectors. This is still an issue for insurers despite the recent widening of the definition of the rural sector (so that it now accords with the census definition). In India, as elsewhere, banks are seeing margins decline sharply in their core lending business. Consequently, banks are looking at other avenues, including the sale of insurance Products, to augment their income. Through The sale of insurance products banks can earn very significant commissions (particularly for regular premium products). In addition, one of the major strategic gains from implementing banc assurance successfully is the development of a sales culture within the bank. This cans be used by the bank to promote traditional banking products and other financial services as well. Banc assurance is not simply about selling insurance but about changing the mindset of a bank .In addition to acting as distributors; several banks have recognized the potential of insurance in India and have taken equity stakes in insurance companies. This is perhaps the precursor of a trend we have seen in the United Kingdom and elsewhere where banks started off as distributors of insurance but

Insurance is an ideal option as banks feel they fulfil the three major requirements for a successful Insurance business that is asset management, investment skill and capital adequacy. Banks would also like to fulfil all the financial needs of their customers. For the following reasons banks are entering into insurance business such as: 1. Wide network of branches-Banks can prove to be a vital distribution channel due to their existing wide network of branches all over. 2. Customer database- Banks can utilize their existing clientele, which includes corporate as well as retail clients to market insurance products. 3. Cross-selling products-In the current scenario banks can cross sells their products along with the insurance products. 4. Fee-based service-Insurance products can be sold as a fee based service. It means by selling insurance products banks earn risk fee fixed income which will be an additional sources of revenue for the banks. 5. Rural penetration-The existing wide network of banks in rural areas can be utilized for selling insurance products. It is easier for banks to tap rural market as the rural people have more awareness and

then moved to a manufacturing role with fully owned insurance Subsidiaries. Earlier works An Overview Following are the review of major research works, books and articles which are related to the present study. The bank taking over insurance is particularly welldocumentated with reference to the experience in Europe. Across Europe in countries like Spain and UK, bank started the process of selling life insurance decades ago and customers found the concept appealing for various reasons. Virtual Asia Philippines (2002), in his article The controversy on banc assurance, stated that controversy on banc assurance started even before banks got the idea of making tie-ups with some of the well-known insurance companies in the country, in July 2002, the American Chamber of Commerce in the Philippines (AMCHAM) asked the Bangkok Sentralng Pilipinas to reconsider its earlier decision to allow integration through certain banks. This involves the practice of selling insurance products. It constitutes 51% interest or more in the insurance company where insurance products are being offered. Milo (2002), in his study entitled Crossselling in contrast to other developing countries, financial services integration has become a key feature of the Philippine financial system. During the 80s, universal banking was introduced as part of a financial reform program to promote competitive conditions and foster greater efficiency in the financial system. Banks have consistently dominated the countrys financial system. Over the years, the Philippines continue to follow a policy of de-specialization by allowing banks to expand their range of permissible products and activities. This was enforced in the new General Banking Law (GBL) of 2000.

This will possibly help increase the allowable limits on the equity investments of universal and commercial banks in financial allied and non-allied enterprises. A recent policy that will further increase financial services integration in the Philippines is the introduction of crossselling. It includes integration that was also under the General Banking Law. According to Horus (2000), in his empirical study entitled Reasons for the increase growth of integration found that the reasons for the growing phenomena for banc assurance are: 1. Premiums on life insurance represent 55% of the world insurance premium. Life insurance is basically considered as a saving market and this is one of the methods to increase bank deposits. 2. Insurers have been considering alternative modes of distribution because of the high costs that have to be paid for insurance services, particularly to the agents. The costs have become too much of a burden for many insurers compared to the returns they generated. 3. Insurers operate through integration agents. They control relationships with customers. They have found that direct relationships with customers gave them greater control of their business at a lower cost. Those insurers who operate through the agency setup are hardly having any control on their relationship with their clients. 4. Prospects for increased consolidation between banking and insurance is more likely dominated and derived by the marketing innovations following the financial service modernization. Innovations include cross selling of banking, insurance and brokerage products and services; the increased usage of

the Internet by consumers; and a melding of insurance and banking corporate cultures. Chaudri (2003) made a study on Personal insurance business and he focused on the services rendered as a differentiator. He pointed -out that in the case of insurable products, many customers are not fully aware of the benefits being offered, as well as, the terms and conditions underlying the same. Apprehension in the minds of the customers usually happens because they think that insurance companies are only interested in collecting the premium without explaining the conditions for seeking future claims. The general tendency is to avoid insurance consultants or agents. Objectives of the study

Data Analysis and Interpretation On the basis of objectives of the study, questions are designed and responses of the respondents are documented in the questions and following analysis are madeout of it. The headings of the following tables columns are to read as; first column Table No.4 Customers choice for buying Column1 Column2 insurance - Company wise LIC ICICI HDFC Birla Sun Life Bajaj Allianz Others 24 7 5 4 4 6 50 48 14% 10% 8% 8% 12% 100%

The primary objective of this study is to find out the effectiveness of banc assurance and on this base following objective is set as under; 1. To analyze the banking activities of people in shimoga city 2. To examine the benefit enjoyed by the customers of ICICI bank 3. To find out the customers satisfaction with regard to insurance products of ICICI bank 4. To study the main concern of customer while taking an insurance policy Methodology The primary data has been collected through structured questionnaire on random sampling method and 69 respondents and ICICI Bank of Shimoga city has been selected. The secondary data has been collected from different sources of literature like journals, magazines, textbooks and internet.

Total

Particulars, column-1 Number of Respondents and column-2 Percentage. Table No.2 Percentage of banking customers having insurance policy Insured Not-insured Total Source: Field survey From the survey it was found that amongst 69 respondents 72% of the respondents are already insured and 28% of the respondents are not insured. Therefore, even either there is lack of awareness among banking customers in insurance products or not thought of to buy it. Column 1 Column 2

50 19 69

72% 28% 100%

attracted towards it and 16% of the respondents in the dilemma to go for it or Column1 Column2 not. A large number of respondents have shown interest to buy ICICI Prudential Satisfied 33 65% products. This is the real good sign to the company to reap the crop. Not Satisfied 17 35% Table No.6 Factors Total 50 100% influencing in choosing Column1 Column2 a particular policy of Source: Field survey ICICI From the survey it was found that amongst Tax Benefit 20 40% 31 respondents who have taken insurance policy, 65% of the respondents are Security 16 32% satisfied but 35% of the respondents are not satisfied. It means a large number of Investment/saving 14 28% present customers are expecting more from the insurance companies. Total 50 100% Table No.3 Opinion on present insurance company's service Source: Field survey From the survey it was found that amongst 50 respondents, 48% of the respondents prefer LIC, 14% of the respondents like ICICI, 10% of the respondents like HDFC, 8% of the respondents like Birla Sun Life, 8% of the respondents like Bajaj Allianz and 12% of the respondents like other Companies. Therefore, still LIC is popular among insurance companies. Table No.5 Willingness to buy Column1 Column2 ICICI Prus Products Interested Not-interested Cant Say Total Source: Field survey From the survey it was found that 60% of the respondents are attracted towards ICICI Products but 24% of them are not 30 12 08 50 60% 24% 16% 100% Source: Field survey The above table gives the picture of the factor influencing in choosing a particular policy of ICICI Pru. That is 40% of the respondents are concerned about tax benefits, 32% of them are going for security and 28% of the respondents buying it as an investment/savings. More number of the respondents are going for insurance policy due to tax benefit. Table No.7 Financial need satisfaction of a policy (Likert scale) Highly satisfied Satisfied Average Not-satisfied Not-at

Column1 Column2

14 10 08 09

28% 20% 16% 18% 18%

all 09

satisfied Total Source: Field survey From the survey it was found that 28% of the respondents are highly satisfied with the policies performance, 20% of the respondents are satisfied, 18% of the respondents are unsatisfied and the same percentage of respondents are not-at all satisfied and 16% of the respondents are Moderate. It shows that a large number of respondents are not happy with the performance of their policy. 50 100%

Table No.9 Suggestions to improve Column1 Column2 operations of Insurance companies Easy procedure Lesser Premiums More Returns 14 10 09 28% 20% 18% 34% 100%

Transparency 17 Total 50

Table No.8 Sources of awareness of holding of present ICICI Prus policy Advertisement Friends and relatives Direct Agents Others Total Source: Field survey

Source: Field survey Column1 Column2 From the table it can be concluded that 28% of the respondents want easy procedures to get the policy done, 20% wants lesser premium policies, 18% expects more returns and 34% of the respondents want transparency in transaction. Table No.10 Quality of service after privatization of insurance sector Improved Not-improved

10 12

20% 24% 42% 14% 100%

Selling 21 07 50

Column1 Column2

41 9 50

82% 18% 100%

From the above table, it can be inferred that 20% of the respondents aware about the present policy which they hold is through advertisement, 24% of them are through from friends and relatives, 42% of the respondents have come to know from direct selling agents and only 14% from other sources. Here, insurance consultants are playing a major role in selling insurance of ICICI Pru.

Total Source: Field survey

From the survey it was found that 82% of the respondents think that services have improved after the privatization of insurance sector, 18% of them feel that services have not improved. Still, it has to satisfy remaining group of people who are not happy with it. Major Findings

On the basis of the study, the following are the noteworthy points are to consider seriously: 1. Most of the people buy life insurance as just a tax benefit tool or as a life cover while only a few of the respondent take it as a saving option. The reason for this is lack of knowledge of insurance benefits among the people. A Majority of the respondent buy insurance products because of the need reason while rest of the respondents buy for the brand purpose. A Majority of the people come to know about the policies from the Direct Selling Agents. Hence, the role of ads in selling insurance products is just considerable. A Majority of the people are satisfied by the incentives associated with their policies. Most of the respondents are satisfied by the services offered by their insurance company while some says that they are not satisfied by the services. Most of the respondents want more Transparency from the side of the company in the transactions.

2.

3. As the bank provides the Insurance facility to its customers, it should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill and profit for the bank. Conclusion After overhauling the all situation that boosted a number of private Companies associated with multinational in the insurance sector to give benefit, competition to the establish behemoth ICICI in private sector, we come at the conclusion that. 1. There are very tough competitions among the private insurance companies on the level of new trend of advertising to attract a major part of Customers. 2. ICICI is not left behind in the present race of advertisement. 3. The entry of more private Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers. 4. ICICI has vast market and very firm grip on its traditional customers and monopoly of life insurance products. 5. IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

3.

4.

5.

6.

Suggestions Following are the major recommendations based on the study and opinion of respondents: 1. There is a need for better promotion for the investment products and services. The bank should advertise its products through television to sell insurance products because it will reach to the masses. 2. Bank should provide a separate counter to sell insurance products and to clarify the insurance customers doubts.

Reference 1. www.nabard.org/pdf/report 2. www.a1thesis.com/banks.html 3. The IUP Journal of Risk and Insurance, Vol-03, No. 2, April 2011, Page No. 18 4. www.oecd.org/dataoecd/9/23/1915 267.pdf 5. www.a1thesis.com/banks.html 6. The IUP Journal of Risk and Insurance, Vol-03, No. 2, April 2011, Page No. 19-20. 7. South Asian Journal of Marketing and Management Research, volume2, issue2, February 2012.

8.www.ibex.com/papers/bancassurance .pdf

CHANGING PARADIGMS IN RURAL MARKETING AN ARTICLE

Prof. Priyanka Kokatnur Assistant Professor, Zess Dnyanaganga College of Engg and Research ABSTRACT: The Indian Demographics gave the size and potential for rural marketing in the light of Bottom of Pyramid. This paper proposes to deliberate the definitions given and understood by researcher and agencies. The paper also is an effort to understand the role played by Supply chain Management and distribution channel in order to fulfil the aspirations of rural consumers. The rural area is defined and understood by stakeholders with their own objectives and goals to be met. There by, the marketing functions related to analysing the needs and satisfying the needs can be performed effectively. Going beyond the satisfaction of needs and wants the marketers have understood the aspirational values in order to make products available to the right consumers at the right price at the right time. The paper discusses here to establish concepts of Supply Chain Management, distribution channels and role it plays in making products and services available to the identified segment of the targeted customer. As an outcome, the paper concludes with better understanding of what rural market is and aspirations of rural consumers and adapting effective supply chain to reach to these consumers. KEYWORDS: Rural market, Indian rural consumer demographics, Aspirations, Supply Chain Management.

INTRODUCTION: The Indian rural market with its vast size and demand base, offers a huge opportunity that companies cant afford to ignore. Thus, more and more companies are trying to enter into the rural market. In order to have an understanding of the rural markets, it is of prime importance to define Rural market. The definition of rural market is open for discussion and deliberation with every stakeholder defining Rural as they perceive it from their point of view. This fact can be best explained from the tale where seven blind men are told to describe an elephant in their own way. First person touches the

trunk of the elephant and describes it as a big pipe, second person touches the tail and describes it as a big rope and the third person touches the ears and describes it as a pan. All of them were not wrong in describing what they felt was the correct picture. Similarly, in the case of rural market the stakeholders do have their own objectives in mind while trying to understand and describe the rural market. Therefore, in order to arrive at the definition which will be acceptable to the marketer, there are two definitions which may serve the purpose.

The Census defines Urban as All the places that fall within the administrative limits of a municipal corporation, municipality, cantonment board etc. or have a population of at least 5,000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square km. Ultimately, what is not urban are defined as Rural. But from the FMCG marketers point of view, Rural as a place where population is up to 20000 people. From the above discussion, its clear that although its easy to describe what rural market is in this description may not give us a complete top down view of rural market. The conservative model of consumer behaviour:

In order to fulfil the aspirations of rural consumers the marketers have used almost all available tools of the 4 Ps of marketing Mix. They have various role to play like, New Product Development, Product Extensions, Pricing Strategies, Marketing Communication Mix. But when it comes to rural markets and helping the rural consumers to achieve the aspirations it may not be wrong to state that the place Supply Chain has a vital role to play. LITERATURE REVIEW:

Need Recognition Post purchase

Information search Rural population accounts for 70% of total Indian population and is increasing at high rate in comparison with urban population. The buyers of rural and urban areas differ in their characteristics while buying any product. The reasons behind these differentiations are many like, a) b) c) d) e) f) Age and lifecycle Occupation Economic situation Lifestyle Personality and self concept Psychological factors like perception, cognition and motivation

Evaluation of alternatives

Purchase This model although focuses on the steps involved in consumer buying behaviour but with the changing socio economic and market forces, marketers have also started focussing on the aspirations of consumers while making a decision to buy. This to some extent can be related to Maslows need hierarchy theory.

Rural business model as proposed by S. P. GARG, Dy.Gen Manager, Bank of Baroda:

R: Retail Business for Rural Community As (Consumer & Producer) U: Urban Facilities (PURA), Investment, Infrastructure R: Animal Husbandry & Allied Activities A: Agri-Production (Field Crops, Plantation) L: Linkages & Synergy Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and there by achieves the goals of the organization. This definition states that the rural marketing emphasis not only on marketing of goods to rural people but also urge them to increase the standard of living by providing high quality product. As the rural market is widely dispersed, the distribution of products and services to this market involves high cost and effort. Rural market suffers from problem like distribution and marketing communication. Companies like HUL and ITC e-chaupal are taking steps to come closer to rural consumers and understand their aspiration. Companies need to formulate their strategies accordingly. The needs and wants may be different. With increase in income and awareness, rural people are becoming conscious about their I II RS-RB US-RB Intra-rural Consumer Goods/ (All products) Services Agro inputs III IV RS-UB US-UB Farm and Non- Intra-Urban Farm Products (All Products) buying decisions.

Rural people are aware about different brands in the market. Thus, they have wide choice in market due to which they are becoming more demanding. They dont want cheap product but want value for money. Brand loyalty is high e.g. Lifebuoy. The problems faced by marketers in rural market are non availability of fixed location of retail shop. This has lead to explore alternative channels to reach rural consumers. Alternative channels are haats, mandis, self-help group, IT- KIOSK, etc. HAATS: arranged every week where buyers and sellers come together. There are average 300 stalls and serves nearly 5000 visitors. MELAS: over 25000 melas arranged all over the country every year. Average sales per day is Rs. 25 lakh. Melas are generally used to sell durables, high priced items and newly launched products. Making collaborations with the companies which already have good contact with rural market (tie up) can help in greater distribution of the products. This can also reduce the distribution costs. e.g. - Nokia tied up with HUL for distribution of its handsets. Motorola and Nokia have partnered with ITC e-choupal which gave them wider reach in the market.

Prof.Sanal Kumar Velayudhan(2002) has quoted M.Jha (1996) about the possible flows in urban and rural locations. Prof L.K.Vaswani, Rajesh Ajthal, Debasis Pradhan and G.Sridhar(2005) have further explained this model for Rural Marketing in Development Paradigm. They have analyzed Marketing and development linkages after going through a plethora of literature available on the subject. They have attempted to redefine the domain of marketing. This gives rise to a much

broader range of exchange relationships between rural and urban as well as within the rural markets. They have given the rural Buyer-Seller (producer) Matrix as given in figure I.

survey and analyse the available literature to clarify the concepts of rural Market, consumer, aspirations and integration of supply chain. Therefore, this paper can be described as an exploratory work which follows the exploratory design where the data is obtained through available, published and unpublished secondary data. FINDINGS: 1. Although going by government definition which may be thought as the most authentic definition of rural market doesnt serve its purpose when viewed from marketers point of view. Its evident from the fact that sectors namely FMCG and agri input view rural markets differently. But from the FMCG marketers point of view, Rural is a place where population is up to 20000 people. Most durable and agriculture input companies would consider any town with population below 50000 as rural (Pradeep kashyap and Siddharth Raut Rural marketing: 2006) 2. Rural - a place which is difficult to access and reach physically (As understood by all). In common parlance rural market means area which is inaccessible. 3. From the above discussion it may be concluded that although rural market is acceptable to be special area of interest and as huge potential the more studies needs to be undertaken in order to distinctly define what is rural and whats not. 4. Four A's of rural marketing

Rural B U Y E R Urban Figure I. Rural Buyer-Seller (producer) Matrix This highlights the need to understand all the exchange relationships described in I, II, and III as in fig I. this will also move the definition beyond the popular belief that Rural Marketing is only marketing to the rural areas. In figure I, seller is in the rural area and consumer may be in the rural area (I) as well as in the urban areas (III). OBJECTIVES: The objectives of the paper: 1. To study the different definitions of the rural market. 2. To understand the aspirations of rural consumers from the marketers point of view. 3. To make an attempt to map the aspirations of rural consumers with the concept of Supply Chain Management and suggest effective Supply Chain Management strategies.

RESEARCH METHODOLOGY: This paper being a conceptual paper, it lays down stress on extensive literature

a. b. c. d.

Adaptability Availability Affordability Acceptability

Examples: Shampoo Dove shampoo growth of over 100% in rural market during January October 2010 Sunsilk reported a growth of around 14% in rural India during the period.

Size of Rural market: FMCG Agri-inputs Durables Automobiles (2 & 4 Wheelers) Clothes, etc. footwear Rs.65000 crore Rs.45000 crore Rs.5000 crore Rs.8000 crore Rs.35000 crore Rs.15000 crore Rs.173000 crore

Beauty care products: Ponds white Beauty - The brand grew 4,200% in January-October 2010 in rural markets Bathing Soap: Cinthol Original during April September was higher this year at around 28% as compared to 12.5% in the corresponding period last year. Biscuits Demand for cream biscuits gone up in rural markets growing significantly faster that glucose. Even in rural market, they are taking away significant consumption from glucose biscuits. According to a retail audit, the share of glucose biscuits in overall market has changed from 30% to 26% in the last 18 months.

Construction material Total Source: CII Report (2008)

The consumer behaviour of rural India is changing rapidly. They are becoming more aware and buying more luxuries than even before (Bishnoi, 2001). They compare themselves with urban people and expect value for money. The rural audience has matured enough to understand the communication developed for the urban markets, especially with reference to FMCG products (Kannan, 2001). With rural consumers warming up to branded products, the urban rural divide is fading away faster than the difference between the aspirations of the rural consumers and the urban counter parts (TOI). Certain growth statistics shows the urban consumer is content with unbranded or mass end products alone and gives a strong indication that rural is accelerating faster than urban markets. This has led to their changing consumption pattern.

Instant noodles is growing nearly twice as fast in the rural market compared to the urban Hair dye

every six rural buyer hair dye now uses colors other than black

Deodorants/Fabric softeners: Are growing much faster in rural Indian than urban