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International Journal of Management
& Behavioural Sciences (IJMBS)
Vol. 05
DECEMBER-2013
ISSN 2278-5671
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ECONOMIC DEVELOPMENT OF URBAN SLUM WOMEN IN GUJARAT, INDIA-A PILOT STUDY
DIFFERENTIAL RATES IN FERTILITY: AN INTERCOMMUNITY ANALYSIS, A CASE STUDY OF ARALAM GRAMA PANCHAYATH, KERALA
CREATING OPTIMAL PORTFOLIO FOR DIVERSIFICATION IN EMERGING MARKETS
EVALUATION OF EFFECTIVENESS OF SALES PROMOTIONAL TOOLS ON SALES VOLUME AND CHANNEL MEMBERS’ PERCEPTIONS [AN
OVERVIEW OF DELHI REGION]
AN ANALYTICAL STUDY OF CRM PRACTICES IN PUBLIC AND PRIVATE SECTOR BANKS IN THE STATE OF UTTAR PRADESH
COMPARATIVE STUDY OF E-BANKING SERVICES OFFERED BY PUBLIC AND PRIVATE SECTOR BANKS IN INDIA
MICRO FINANCE AND FINANCIAL INCLUSION – CHALLENGES AHEAD AND THEIR SOLUTIONS IN INDIAN PROSPECTIVE
HOSPITAL WASTE GENERATION RATE IN KERALA - A STATISTICAL ANALYSIS
A COMPARATIVE STUDY OF THE IMPACT OF JOB STRESS AND JOB INVOLVEMENT ON EMPLOYEE SATISFACTION AND INTENTION TO
QUIT
EVALUATING THE PERFORMANCE CHARACTERISTICS OF SELECT BANK FUNDS USING POPULAR AND ADVANCED MEASUREMENT TOOLS
EXPLORING PROBLEMS & CHALLENGES OF WOMEN ENTREPRENEURS
AN INFLUENCE CREATED BY CHILDREN ON PARENTS’ PURCHASE DECISIONS DUE TO TELEVISION ADVERTISEMENTS
SCHOOL ACCREDITATION AND ASSESSMENT IN CENTRAL INDIA: AN ANALYSIS OF AWARENESS OF SCHOOL PRINCIPAL
EFFECT OF WORKPLACE RELATED PROCESS VARIABLES ON PSYCHOLOGICAL CONTRACT FULFILLMENT AND QUALITY OF PATIENT
CARE DELIVERED BY MEDICAL PROFESSIONALS IN PRIVATE AND PUBLIC HOSPITALS
TALENT MANAGEMENT
RELATIONSHIP BETWEEN SELF-ESTEEM AND LOCUS OF CONTROL AMONG ADOLESCENT STUDENTS IN BANGALORE
INFORMATION AND COMMUNICATION TECHNOLOGY IN DEVELOPMENT: CAN I (T) HELP INCLUDE THE EXCLUDED?
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE COMMITMENT AND TURNOVER
SOCIAL MEDIA AND HEALTH CARE
EMPLOYEES’ SATISFACTION
CORPORATE AGILITY-A GLOBAL ORGANIZATIONAL REINVENTING APPROACH FOR LONG TERM SUSTAINABILITY AND EXCELLENCE
A STUDY OF PSYCHOLOGICAL HARDINESS ACROSS DIFFERENT PROFESSIONS OF KASHMIR (J&K), INDIA
FACTORS INFLUENCING THE INDIVIDUAL INVESTOR BEHAVIOR WITH SPECIAL REFERENCE TO COIMBATORE, TAMIL NADU
BRAND RITUALS AND ITS IMPACT ON DEMAND OF THE PRODUCT
BRAND IMPACT ON CUSTOMER PURCHASE INTENTION – A STUDY FOR INDIAN CLOTHING INDUSTRY
TOURISM AND TRAVEL INDUSTRY: A NEW PATH FOR PROSPECTIVE ENTREPRENEURS
FACTORS AFFECTING CUSTOMERS SATISFACTION ON TELECOMMUNICATION SERVICES: A STUDY OF GWALIOR
COVERT ADVERTISING AND ITS IMPACT ON CONSUMER BEHAVIOUR
FLOURISHING, GRIT AND RESILIENCE AMONG COLLEGE STUDENTS
THE RELATIONSHIP AMONG ORGANISATIONAL CLIMATE, JOB SATISFACTION AND HAPPINESS OF THE EMPLOYEES OF EDUCATIONAL
INSTITUTIONS
HUMAN RESOURCE MANAGEMENT AND STUDY OF MANAGEMENT OF ORGANIZATIONAL BEHAVIOR IN THE MULTI NATIONAL
COMPANIES
SPIRITUAL INTELLIGENCE, RELIGIOUS BELIEF, PERSONAL CONTROL AND MENTAL HEALTH: A CORRELATIONAL STUDY
SUBJECTIVE VITALITY AS PREDICTOR OF CURIOSITY AND SELF ANCHORING
RELATIONSHIP AMONG HOPE, MEANING OF LIFE AND SATISFACTION WITH LIFE AMONG COLLEGE GOING STUDENTS
LONELINESS, ALIENATION AND QUALITY OF LIFE AMONG COLLEGE STUDENTS
SOCIETY AND EDUCATION
CAREER ASPIRATIONS AND WELLBEING OF HIGHER SECONDARY STUDENTS
DO INTELLIGENT PEOPLE MAKE THE ORGANIZATION INTELLIGENT?
ATUL ORGANIZATIONAL INTELLIGENCE: A PERSPECTIVE
EGO RESILIENCE, HAPPINESS AND QUALITY OF LIFE AMONG MALES AND FEMALES
MICRO FINANCE-A GAP FILLER
LOW LEARNING OUTCOMES IN PRIMARY SCHOOLS IN INDIA
A CASE STUDY ON ANGER MANAGEMENT BY DINT OF HYPNOSIS
USE OF HYPNOSIS IN INCREASING MINDFULNESS AND CONFIDENCE: A CASE STUDY
MUSLIM WOMEN: INACTIVE DEMOS IN ACTIVE DEMOCRACY
E-BUSINESS/E-COMMERCE
IMPACT OF GRIT AND SUBJECTIVE VITALITY ON ACADEMIC ACHIEVEMENT
JOB INSECURITY IN PRIVATE SECTOR DUE TO RECENT RECESSION: A PSYCHOLOGICAL ANALYSIS
RANKING OF CREDIT CARDS OF DIFFERENT BANKS USING AHP
ORGANIZATIONAL RESILIENCE CULTURE: A CULTURE OF SAFETY & SECURITY IN EDUCATIONAL INSTITUTES OF INDIA
ANALYZING AND MANAGING EMPLOYEE TURNOVER
EFFECT OF EMOTIONAL INTELLIGENCE ON LEADER-MEMBER EXCHANGE (LMX) IN SALES EMPLOYEES: AN EMPIRICAL STUDY IN
PHARMACEUTICAL INDUSTRY IN INDIA
WHY INNOVATIVE PEDAGOGY?
THE RELATIONSHIP BETWEEN PARENTING STYLE AND SOCIAL SKILLS TRIBAL STUDENTS
A STUDY ON HRD CLIMATE WITH SPECIAL REFERENCE TO: (RSWM TEXTILES COMPANY LTD.BHILWARA, RAJASTHAN)
A STUDY OF RELATION OF EMOTIONAL INTELLIGENCE TO JOB SATISFACTION AMONG CORPORATE EXECUTIVES
HERZBERG’S MOTIVATION-HYGIENE AND RETENTION
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International Journal Of Management & Behavioural Sciences (IJMBS)
Vol. 05
DECEMBER-2013
ISSN 2278-5671
ABOUT THE JOURNAL
The International Journal of Management and Behavioural Sciences (IJMBS) is a Bi-Annual
refereed publication (E-Journal) of Society of Management and Behavioural Science, which
is committed to publish scholarly empirical and theoretical research articles that have a high
impact on the management and Behavioural science field as a whole. The journal encourages
new ideas or new perspectives on existing research.
1
www.smbs.in
Vol. 05
DECEMBER-2013
ISSN 2278-5671
International Journal of Management
& Behavioural Sciences (IJMBS)
EDITOR- IN- CHIEF
Dr. Sunil Kumar
President and Executive Director,
Society of Management and Behavioural Science
(SMBS INDIA & SMBS CANADA)
EDITORIAL REVIEW BOARD
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Dr. Shyam Lata Juyal, Profesor and Head, Department of Psychology, Gurukul Kangri
University, Haridwar
Prof. Rahul Mishra, Professor, Indian Institute of Planning and Management, Lucknow
Dr. SudhirAgarwal, Assistant Professor, Department of Management, Fiji National
University, Suva, Fiji
Dr. Devinder Sharma, Associate professor, BCIPS, GGSIP University, Delhi
Prof. Rajesh S. Pyngavil, Gitarattan International Business School, GGSIP University,
Delhi
Dr. Ajay Suneja, Associate professor, Department of Commerce, Kurukshetra
University, Kurukshetra
Dr. Kirti Sharma, Assistant Professor, Management Development Institute, Gurgaon
Prof. P. Sinha, JNV University, Jodhpur
Prof. C.R. Darolia , Department of Psychology, Kurukshetra University, Kurukshetra
Dr. C.P. ShaheedRamzan, Govt. College Kodanchery, Calicut, Kerla
Prof. H.K. Manjhi, Bangalore City College & SMSG Jain College, Bangalore
Dr. Prashant P. Deshpande, S.N.D.T. University, Mumbai, Maharashtra
Dr. OzgurCengel, Associate Professor, Istanbul Commerce University, Turkey
Dr. FigenYildirim, Assistant Professor, Istanbul Commerce University, Turkey
Dr. RuchiTewari, Associate Professor, Shanti Communication School, Ahmedabad.
Dr. V.K. Shanwal, Associate Professor, Dept. of Psychology , Fiji National University,
Fiji
Dr. N. George Mathew, Asst. Professor, Aljouf University, Aljouf Province, SAKAKA,
Saudi Arabia
Dr. GaganKukreja, Assistant Professor (Accounting), Ahlia University, Manama,
Kingdom of Bahrain
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Vol. 05
DECEMBER-2013
ISSN 2278-5671
GUIDELINES FOR SUBMISSION
International Journal of Management and Behavioural Sciences (IJMBS) is an online Bi-annual research journal,
which is committed to publish scholarly empirical and theoretical research articles that have a high impact on
the management and Behavioural science field as a whole. The journal encourages new ideas or new
perspectives on existing research.
Paper Formatting Guidelines:
Please see below for specific paper category guidelines.
Categories
Suggested Page Limit
Suggested Word Count
Full Papers
7 – 12
4000-5000
Case Studies
3 – 10
1500-4000
Text should be formatted for 8.5 x 11 inch paper, 12 point Times New Roman font that is single- spaced, with
one inch margins and left justified. References should generally follow Harvard or APA style guidelines.
The following is the suggested format for paper submissions:
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Paper Title
ALL authors' Title (e.g. Dr, Mr, Mrs, etc.) & Name, Affiliation, Email etc
Abstract and Keywords
Introduction / Background / Objective
Literature Review
Methodology, Findings, Analysis & Discussion
Conclusion, Limitations and Recommendations
References - Harvard or APA Style is Required.
Tables, figures, etc. in their appropriate location in the paper (if applicable)
MANUSCRIPT
Copy of the manuscript, typed in double space on A4 size bond paper allowing 1 inch margin on all sides,
should be submitted with a soft copy by e-mailed to the editor at [email protected] or [email protected]
or [email protected]. However, in this case two hard copies of the manuscript have to be sent separately.
Manuscripts should follow British spellings throughout e.g. Programme, not program. The length of a paper
including tables, diagrams, illustrations, etc., should not exceed 15 double spaced pages or 5000 words. Short
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government reports, debatable issues should not exceed more than 5 double spaced pages.
ORIGINALITY STATEMENT
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not been published or sent for publication elsewhere. Each Manuscript must be accompanied by a Manuscript
Submission Form, the Format for which can be downloaded from here.
REVIEW
All contributions submitted will be subjected to peer blind review and the decision of the Editorial Committee
will be final at all.
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Vol. 05
DECEMBER-2013
ISSN 2278-5671
CONTENTS
1.
ECONOMIC DEVELOPMENT OF URBAN SLUM WOMEN IN GUJARAT, INDIA-A PILOT STUDY
07
Pavithra Rajan, Anand Koti……………….………………………………………………………………..……………………...…………
2.
DIFFERENTIAL RATES IN FERTILITY: AN INTERCOMMUNITY ANALYSIS, A CASE STUDY OF
ARALAM GRAMA PANCHAYATH, KERALA
Sufaira.C…………………………………………………...……………………………………………………..……………………..….... 14
3.
CREATING OPTIMAL PORTFOLIO FOR DIVERSIFICATION IN EMERGING MARKETS
4.
EVALUATION OF EFFECTIVENESS OF SALES PROMOTIONAL TOOLS ON SALES VOLUME
AND CHANNEL MEMBERS’ PERCEPTIONS [AN OVERVIEW OF DELHI REGION]
Prakhar Porwal………………………………………..……………………………………………………………………………………... 18
Mr. Kush kr. Patwa , Mr. Love kumar Patwa, Dr. Sunil jakhoria …………………………..………………………………………….…… 22
5.
6.
AN ANALYTICAL STUDY OF CRM PRACTICES IN PUBLIC AND PRIVATE SECTOR BANKS IN
THE STATE OF UTTAR PRADESH
Mr. Love kumar Patwa, Mr. Kush kr. Patwa……………………………………………………………….……………………………....… 30
COMPARATIVE STUDY OF E-BANKING SERVICES OFFERED BY PUBLIC AND PRIVATE
SECTOR BANKS IN INDIA
Dr. Preshni Shrivastava …………………………………………………...……………………………………………………………...…. 34
7.
MICRO FINANCE AND FINANCIAL INCLUSION – CHALLENGES AHEAD AND THEIR
SOLUTIONS IN INDIAN PROSPECTIVE
Dr. Karambir Singh…………………………………………………………………………...…………………………………………..… 41
8.
HOSPITAL WASTE GENERATION RATE IN KERALA - A STATISTICAL ANALYSIS
9.
A COMPARATIVE STUDY OF THE IMPACT OF JOB STRESS AND JOB INVOLVEMENT ON
EMPLOYEE SATISFACTION AND INTENTION TO QUIT
Savitha K. L , T J Joseph ………………………………………………………………………………..……………………………….... 47
Chetna Pandey, Ritu Gangil…………………………..…………………………………………………………………………………….. 53
10. EVALUATING THE PERFORMANCE CHARACTERISTICS OF SELECT BANK FUNDS USING
POPULAR AND ADVANCED MEASUREMENT TOOLS
Vishu Kapoor, Kunal Adhikari, Rakesh Shahani…………………………………………….……………………...………………………. 59
11. EXPLORING PROBLEMS & CHALLENGES OF WOMEN ENTREPRENEURS
Prof. Satish C. Sharma, Dr. Urmila Sharma ……………………………………………………………………………………………….. 67
12. AN INFLUENCE CREATED BY CHILDREN ON PARENTS’ PURCHASE DECISIONS DUE TO
TELEVISION ADVERTISEMENTS
Mrs. Pallavi K. Mhatre……………………………………………………….....................................................……………………..……….73
13. SCHOOL ACCREDITATION AND ASSESSMENT IN CENTRAL INDIA: AN ANALYSIS OF
AWARENESS OF SCHOOL PRINCIPAL
Prashant Thote…………………………………………………………...……………………………………………………………....….. 77
14. EFFECT OF WORKPLACE RELATED PROCESS VARIABLES ON PSYCHOLOGICAL CONTRACT
FULFILLMENT AND QUALITY OF PATIENT CARE DELIVERED BY MEDICAL
PROFESSIONALS IN PRIVATE AND PUBLIC HOSPITALS
Dr. Sneha Singh Munda……………….…………………………….…………...………………………………………………….......….. 83
15. TALENT MANAGEMENT
Vignesh Vasudevan ……………………………………………………..………………..........................................................……..………90
16. RELATIONSHIP BETWEEN SELF-ESTEEM
ADOLESCENT STUDENTS IN BANGALORE
AND
LOCUS
OF
CONTROL
AMONG
Dr.S.Anil Kumar, Ms. Bharati Rao Pothukuchi………………….…………...………………………………..………………………....…..
95
17. INFORMATION AND COMMUNICATION TECHNOLOGY IN DEVELOPMENT: CAN I (T)
HELP INCLUDE THE EXCLUDED?
Dr. Uttam Kr Pegu ………………………………………….....................................................…………………………...……..................….99
18. IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE COMMITMENT AND
TURNOVER
Ms Pooja Jaiswal, Dr Archana Chandra …………………………………………………………………………………….………....….. 106
19. SOCIAL MEDIA AND HEALTH CARE
Dr. Ankita Doneriya, Dr. Anurup Doneriya………………………..………………………...…...…………………………………....….. 112
20. EMPLOYEES’ SATISFACTION
Manisha Gupta, Dr. Archana Chandra …………………………..…………...............…………………………………………....….. 121
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Vol. 05
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21. CORPORATE AGILITY-A GLOBAL ORGANIZATIONAL REINVENTING APPROACH FOR
LONG TERM SUSTAINABILITY AND EXCELLENCE
Mrs.Vijit Chaturvedi, Dr.Sudhir Agarwal…………………………..…………………........……………………………………....….. 130
22. A STUDY OF PSYCHOLOGICAL HARDINESS ACROSS DIFFERENT PROFESSIONS OF
KASHMIR (J&K), INDIA
Dr. Anita Puri Singh, Ansarullah Tantry…………………………..……………….......…………………………………………....….. 146
23. FACTORS INFLUENCING THE INDIVIDUAL INVESTOR BEHAVIOR WITH SPECIAL
REFERENCE TO COIMBATORE, TAMIL NADU
Dr. Ramesh Chandra Babu……………………..………………………………………………..…......………………………...…….. 151
24. BRAND RITUALS AND ITS IMPACT ON DEMAND OF THE PRODUCT
Maryada Johari, Dr. Gulnar Sharma……………………..………………......………………………………………………...…....….. 156
25. BRAND IMPACT ON CUSTOMER PURCHASE INTENTION – A STUDY FOR INDIAN
CLOTHING INDUSTRY
Dr.Prof. Gulnar Sharma, Mr.Sushil Raturi ……………………………………….…………………………………..……………....….. 160
26. TOURISM AND TRAVEL INDUSTRY: A NEW PATH FOR PROSPECTIVE ENTREPRENEURS
Mr. Amit Kumar Uppal ……..……………………………………………......…………………………......…………………………….. 166
27. FACTORS AFFECTING CUSTOMERS SATISFACTION ON TELECOMMUNICATION SERVICES:
A STUDY OF GWALIOR
Ajay Phaltankar, Prashant Kushwaha……..……………………………...…………………......………….………………………….. 175
28. COVERT ADVERTISING AND ITS IMPACT ON CONSUMER BEHAVIOUR
Shruti Saraswat, Vikram Singh Rana, Dr. Gulnar Sharma..………..………………..…..…………………......…………………………….. 184
29. FLOURISHING, GRIT AND RESILIENCE AMONG COLLEGE STUDENTS
Ms. Vidushi Saharan ………..……………….......…………………………………………………………………………...…....….. 190
30. THE RELATIONSHIP AMONG ORGANISATIONAL CLIMATE, JOB SATISFACTION AND
HAPPINESS OF THE EMPLOYEES OF EDUCATIONAL INSTITUTIONS
Ms. Mahima Agarwal………………………..…………………………….….…………………………………..……………....….. 195
31. HUMAN RESOURCE MANAGEMENT AND STUDY OF MANAGEMENT OF ORGANIZATIONAL
BEHAVIOR IN THE MULTI NATIONAL COMPANIES
Shekhar Kapoor……..…………………………………..…………………………….……………………….. 201
32. SPIRITUAL INTELLIGENCE, RELIGIOUS BELIEF, PERSONAL CONTROL AND MENTAL
HEALTH: A CORRELATIONAL STUDY
Ms. Santosh Meena……..……………………………………………..………………......………….………………………….. 209
33. SUBJECTIVE VITALITY AS PREDICTOR OF CURIOSITY AND SELF ANCHORING
Ms. Udita Kaushik…..……………..………………………………….………...………...…………………………………....….. 214
34. RELATIONSHIP AMONG HOPE, MEANING OF LIFE AND SATISFACTION WITH LIFE
AMONG COLLEGE GOING STUDENTS
Ms. Jyoti Mishra……………………………………………….…….......…………………………………………....….. 218
35. LONELINESS, ALIENATION AND QUALITY OF LIFE AMONG COLLEGE STUDENTS
Anamika Mishra……………...………………………………...…………………………………………...……………………....….. 223
36. SOCIETY AND EDUCATION
Dr. Seeme Mahmood…………..…………………………………….............................…………………………………………....….. 228
37. CAREER ASPIRATIONS AND WELLBEING OF HIGHER SECONDARY STUDENTS
Mrs Shraddha Dhiwal ……………………..…………………………..……..….......…………………………………………....….. 236
38. DO
INTELLIGENT
PEOPLE
MAKE
THE
ORGANIZATION
ORGANIZATIONAL INTELLIGENCE: A PERSPECTIVE
INTELLIGENT?
Akriti Srivastava…………………………………………..…………….………………………......…………………………….. 241
39. EGO RESILIENCE, HAPPINESS AND QUALITY OF LIFE AMONG MALES AND FEMALES
Ms. Santosh Meena……..……………………...…………………..………………......………….………………………….. 246
40. MICRO FINANCE-A GAP FILLER
Mr. Narayanan Kannan….…..………………………………………...…...………...…………………………………....….. 254
41. LOW LEARNING OUTCOMES IN PRIMARY SCHOOLS IN INDIA
Ankit Vyas……………………..……………………………………….......………………………………...…………....….. 260
42. A CASE STUDY ON ANGER MANAGEMENT BY DINT OF HYPNOSIS
Sandhya Gupt……………...………………………...………………………….………………………...……………………....….. 268
43. USE OF HYPNOSIS IN INCREASING MINDFULNESS AND CONFIDENCE: A CASE STUDY
Navya Pande …………..……………………….............………….............………….............................……..…………………....….. 274
44. MUSLIM WOMEN: INACTIVE DEMOS IN ACTIVE DEMOCRACY
Ms. Deepti Acharya…………………………………..……………………...…..….......…………………………………………....….. 282
45. E-BUSINESS/E-COMMERCE
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Dr.Mahadevaswamy M.S……………..…………………………………………...………...…………………………………....….. 291
46. IMPACT OF GRIT AND SUBJECTIVE VITALITY ON ACADEMIC ACHIEVEMENT
Anu Teotia, Manpreet Kaur…………..………………………………………..…….......………………………………...…………....….. 296
47. JOB INSECURITY IN PRIVATE SECTOR DUE TO RECENT RECESSION: A PSYCHOLOGICAL
ANALYSIS
Chhaya Teotia, Anu Teotia, Dr. C.P.Khokhar……………...………………….………….………………...……………………....….. 300
48. RANKING OF CREDIT CARDS OF DIFFERENT BANKS USING AHP
Mrs. Usha Jain, Mr. K.Venkataraman, Dr. V.B.Gupta…..………………………………...………..……………………...…………....….. 305
49. ORGANIZATIONAL RESILIENCE CULTURE: A CULTURE OF SAFETY & SECURITY IN
EDUCATIONAL INSTITUTES OF INDIA
Mohammad Ashphaq, Dr. Pooja Purang, Dr. Meenakshi Gupta.………… ……….………………………...……………………....….. 309
50. ANALYZING AND MANAGING EMPLOYEE TURNOVER
Mrs. Pallavi Pathak……………..………………………..……………….……...…..….......…………………………………………....….. 318
51. EFFECT OF EMOTIONAL INTELLIGENCE ON LEADER-MEMBER EXCHANGE (LMX) IN
SALES EMPLOYEES: AN EMPIRICAL STUDY IN PHARMACEUTICAL INDUSTRY IN INDIA
Dr.Rupali Khanolkar ………………………………………...………...……………………………………………………………....….. 326
52. WHY INNOVATIVE PEDAGOGY?
Ms. Jaspreet Dahiya, Ms. Komal Sehgal…………………………………….…..…….......………………………………...…………....….. 334
53. THE RELATIONSHIP BETWEEN PARENTING STYLE AND SOCIAL SKILLS TRIBAL
STUDENTS
Masoud Haghighi, Safar Ali yazarloo……………..…………………………………….………………...……………………....….. 342
54. A STUDY ON HRD CLIMATE WITH SPECIAL REFERENCE TO: (RSWM TEXTILES COMPANY
LTD.BHILWARA, RAJASTHAN)
Dr Neha Sharma, Pooja Kasliwal………………………………………..…..…….......………………………………...…………....….. 346
55. A STUDY OF RELATION OF EMOTIONAL INTELLIGENCE TO JOB SATISFACTION AMONG
CORPORATE EXECUTIVES
Dr Vishnu N Mishra, Kshama Ganjiwale……………...…………………...………….………………...……………………....….. 359
56. HERZBERG’S MOTIVATION-HYGIENE AND RETENTION
Kshama Ganjiwale, Dr Vishnu N Mishra………………………………..…..…….......………………………………...…………....….. 367
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ECONOMIC DEVELOPMENT OF URBAN SLUM WOMEN IN
GUJARAT, INDIA-A PILOT STUDY
ABSTRACT
Pavithra Rajan1
Anand Koti2
Economic development of India depends, to a large extent, on the development of its urban slums. One
such attempt toward economic empowerment of urban slum women in Vadodara, Gujarat began in early
2011, with an initial investment of Rs. 5000 to train 5 women in self sustaining activities like paper
quelling earrings, beads earrings, jute mobile bag and paper quelling envelope. The products made by
them were exhibited at local schools in Vadodara and Pune. The project is still in its development phase.
More number of participants have joined the vocational training program since its inception. On taking
a feedback from the women on this economic empowerment project, positive responses were noted.
The women felt empowered as they were contributing on the economic front in their homes. They felt
contented and could plan better futures for their children. Other women in the slums seemed interested
in the project and wanted to join the project. A radical change in these women was reported in the
feedback taken. These women could act as catalysts for social change in their neighborhood and
communities. Localized economic empowerment projects like these could not only bring economic
growth in urban slum women but also an overall positive change in their thinking and living.
KEYWORDS: Urban slum women, India, Gujarat, economic development
REVIEW OF LITERATURE
Women in India have a passive role to play (Sharma et al, 2013). Despite having many laws for women
protection, the society seems to be more powerful in dictating the roles women play (Rocca et al, 2009).
Women empowerment has been used as a tool to reduce gender inequality in India. In one such study by
D’Souza et al in 2013, it was found that one of the major themes responsible for ensuring women’s well being
in India was employment and income generating opportunities.
One of the important Millenuim Development Goals (MDGs) is promotion of women empowerment, including
maternal health. It was seen that one of the major reasons for not being able to meet the targets for achieving
the MDGs for maternal welfare in rural India was lack of women empowerment (Mullick and Serle, 2011).
However, in recent times, many such projects have been started in India.
One such initiative was by UNDP-IKEA Foundation. Through this project, thousands of women in Uttar
Pradesh, India have been offered loans to start their own small scale business, thus making them self reliant
and more independent (UNDP, 2011). This project was launched in 2009 and it is a five year project running
in three districts of eastern Uttar Pradesh. This is not only aimed to be an income generating project but also
hopes to help these empowered women be the “agents of change” in the society.
In yet another study on HIV mothers in the state of Maharashtra in India, a need for economic empowerment
of women was recommended. The data from 734 women who were attending a national Prevention-of-MotherTo-Child-Transmission program in Maharashtra, India was used to assess the socio-economic factors that lead
to drop outs in these women. It was found that these women were economically deprived which was identified
as one of the major reasons for the drop out (Panditrao et al, 2011). Thus, it was concluded that economic
empowerment could be one of the important factors that is required to ensure adequate health among the
underprivileged women in India.
The need for economic empowerment was also stressed upon among women in Southern India. In a recent
study by Noronha et al in 2013, it was found that anaemic women who were part of a planned health education
and implementation programme were healthier as compared to those women who were in the control and
1
2
Head of Research wing- “Risachi”, Colorss Foundation, Vadodara, Gujarat
Founder, Colorss Foundation, Vadodara, Gujarat
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Vol. 05
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ISSN 2278-5671
quasi-control group. The authors also recommended the strong need of economic empowerment in order to
benefit not only the community members but also the community at large (Noronha et al, 2013). In another
paper by Rao in 2011, it was suggested that economic empowerment of agricultural women in the state of
Andhra Pradesh needs to be more structured as women form a major part of the labor force in that region.
Many studies have been done on health interventions for slum dwellers in different parts of the country like
Kolkata (Kanungo et al, 2012), Mumbai (More et al, 2012), Uttar Pradesh (Speizer et al, 2012), Gujarat (Rajan
and Koti, 2012), Delhi (Pahwa et al, 2010), Bengaluru (Edmeades et al, 2011), and Chandigarh (Khurana et
al, 2005). However, economic empowerment of slum women in India has seldom been researched on larger
scale as the health intervention studies, although such projects have been shown to be important for health
promotion (Enjezab t al, 2012).
INTRODUCTION
Colorss Foundation is a Non Governmental Organization that was formed in 2008, with the vision to empower
women from disadvantaged sections of the society so that they could be on par with their male counterparts.
Since its inception, Colorss Foundation has worked toward their progress using unique strategies like self
defense workshops and self-sustenance projects, to name a few. The “Women Empowerment Project” was
initiated as a pilot project in early 2011 in the slums of Vadodara, Gujarat, India. This project was started on
a small scale involving five underprivileged women. Special workshops were conducted for these women to
empower them with the income generating skills like jewellery and bag making, to name a few. An initial
investment of Rs. 5,000 was made to get the project started. Apart from the holistic rehabilitation of the slum
women, Colorss Foundation also strives for the rehabilitation of slum children.
OBJECTIVE
The objective of the current paper was to study the impact of the “Women Empowerment Project” on the slum
women in Vadodara, Gujarat, India.
METHODOLOGY
The “Women Empowerment Project” was launched in early 2011, with the sole aim of developing self
sufficient income generating projects for the urban slum women of Vadodara, Gujarat, India, so as to make
them self reliant and create “agents of change” in the society.
In early 2011, when the project was initiated, five women from the slums of Vadodara were trained in different
small-scale income generating projects like paper quelling earrings, beads earrings, jute mobile bags, paper
quelling envelopes, hand bags, and paper boxes (please refer to Figures 1-3).
Figure 1.1. Figure showing technique of cutting for bag making
Figure 1.2. Figure showing hand made bags using eco friendly fabrics
Figure 2.1. Figure showing procedure for jewellery making
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Figure 2.2 Figure showing procedure for bead making
Figure 2.3. Figure showing the finishing of the jewellery/bead making
Figure 2.4. Figure showing the hand made jewellery (final product)
Figure 3.1 Figure showing procedure for making paper boxes
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Figure 3.2. Figure showing the paper boxes (finished product)
The women received free vocational training in order to hone their skills in income generating projects. Under
the able guidance of a community social worker, the projects began and the women could make on an average
of 20 pieces of finished products on a usual day at the centre. On days that were exceptionally productive, a
total of 30 pieces would be made. These products have been showcased in various exhibitions at local schools
in Vadodara and Pune.
Apart from income generation, there have been many positive outcomes as reported by the urban slum women,
including increased self confidence, increased quality of life, less economic stress in the family, feeling proud
to be able to contribute to home expenses, among others. The project began with an initial investment of Rs.
5,000 and five participants. Over these years, it has expanded to many more women wishing to learn these
skills and become self reliant.
DISCUSSION
The current study aimed to look at the impact that a pilot economic empowerment programme had on urban
slum women in Vadodara, Gujarat, India. It was found that this pilot programme has positive impact on the
women, not only on the economic front but also in the social front. The women, who were part of this pilot
project, not only reported a sense of pride in being able to be a financial contributor in the family but also
appreciated the improved sense of pride and self confidence.
Economic empowerment projects for underprivileged women have been implemented in different parts of the
globe. One such project was implemented in rural South Africa named IMAGE (Intervention with
Microfinance for AIDS and Gender Equity) (Kim et al, 2007). This program included health promotion along
with providing microfinance for economic empowerment. It was found that there was significant social and
economic empowerment in these women, thus emphasizing the positive impact that such projects have.
Another economic empowerment was conducted for the women in the Kamba-speaking community in Kenya.
It was found that economic empowerment helped in enhancing “perceived individual, domestic and social
community status” (Gnauck et al, 2013). In another similar study, it was found that women empowerment was
important for social acceptability and family harmony (Bustamante-Gavino et al, 2011).
The economic empowerment programs have many advantages. It has been seen that when underprivileged
women are economically empowered, it has positive health outcomes. In a study by Corroon et al, economic
empowerment encouraged the women in seeking healthy behaviours like use of modern contraception,
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institutional delivery and skilled attendants during child delivery (Corroon et al, in press). Bangladesh has
many ongoing income generating projects and these projects have been proven to have a positive impact on
the social well-being and better health outcomes of the participating women (Amin et al, 1995; Amin et al,
1998). In addition, income generating projects helped create more awareness among poor women from
Bangladesh about health promotion (Hadi, 2001). Increased social well-being was also reported with income
generating projects by Indian underprivileged women (Rajamma, 1993). An economic empowerment program,
named Pragati, was initiated for the female sex workers in the Indian state of Bangalore. It was seen that each
year, there seemed to be increased number of women who enrolled into the program to seek information about
healthy behaviours (Euser et al, 2012). Thus, an important consequence of income generating projects seems
to be improved health outcomes. The other benefits of women empowerment projects were increased
contribution in decision making at home (Amin and Pebley, 1994), improved health of the children in the
family (Daraka, 2011), and economic status in the family (Kantor, 2003).
In the current study as well, the authors found that the women felt empowered as they were contributing on
the economic front in their homes. They felt contented and could plan better futures for their children. Other
women in the slum seemed interested in the project and wanted to join the project. A radical change was
reported by these women. These women could act as catalysts for social change in their neighborhood and
communities. Localized economic empowerment projects like these could not only bring economic growth in
urban slum women but also an overall positive change in their thinking and living.
CONCLUSIONS
The pilot economic empowerment project undertaken by Colorss Foundation had a positive impact on the
urban slum women in Vadodara, Gujarat, India. This project is still in its developmental phase; nevertheless,
this project seems to be expanding as the other women are expressing their desire to become a part of it.
LIMITATIONS
The project involved only five women from the urban slums. Hence, it is difficult to generalize findings, due
to smaller sample size.
RECOMMENDATIONS
It would be interesting to see how this project impacts larger number of urban slum women. In addition, it
seems important to collect more structured data to assess the efficiency and effectiveness of such projects from
an economic standpoint.
ACKNOWLEDGEMENTS
The authors would like to thank Ms. Khyati Master for offering free vocational guidance to the slum women.
Deep gratitude to the slum women who were part of this project.
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DIFFERENTIAL RATES IN FERTILITY: AN INTERCOMMUNITY
ANALYSIS, A CASE STUDY OF ARALAM GRAMA PANCHAYATH,
KERALA
ABSTRACT
Sufaira.C 1
Over population is a growing problem throughout the world at this stage in time. In India fertility and
religion is closely related, most of the studies conducted in India revealed that fertility among the Muslims
is higher as compared with the Hindus. The fertility among the Hindus and Muslims is almost same in
the rural areas but it considerably varies in urban areas where it is higher among Muslims. Thus, there
exist differentials in the fertility levels among the religious groups in India. Kerala showed that fertility
could be reduced rapidly through a programme of family planning. Fertility was brought below
replacement level and fertility differentials were reduced substantially. The study proves that the fertility
rate of Muslims is higher than that of other communities in Kerala. Spatial dimension points to the
existence of significant self-sustaining diffusion mechanisms: behavioral change spreads gradually across
adjacent religious groups or cultural regions.
KEYWORDS: Fertility, Communities, Kerala
INTRODUCTION
Fertility forms an important corner stone of national as well as international concerns regarding numerous
aspects of human life as well as the environment. Population growth especially fertility trends continue to pose
major dilemmas for policy makers, administrators, researchers and others the world over, more particularly in
the world. There is a long tradition of addressing religious affiliation as a determinant of demographic
behavior, particularly; the interest has long been focused on fertility differentials by religion. In India fertility
and religion is closely related. The fertility among the Hindus and Muslims is almost same in the rural areas
but it considerably varies in urban areas where it is higher among Muslims. Thus, there exist differentials in
the fertility levels among the religious groups in India. Several studies have applied multivariate analysis to
district-level data and found that the proportion of Muslims in the proportion of the district has a strong,
independent and positive effect on fertility (Bhagut and Rajan 1989,Bhat1996) .
Table 1 New growth rates of different religious communities in India-1901-2001
Year
Total
Hindus
Muslims
Christians
Others
1901-1911
0.6
0.5
0.3
2.6
1.2
1911-1921
0.0
-0.1
0.1
1.9
-0.6
1921-1931
1.0
1.0
1.4
2.9
-0.5
1931-1941
1.1
0.6
1.7
0.4
7.5
1941-1951
1.5
2.4
-1.8
3.7
-11.7
1951-1961
2.0
1.9
2.8
2.5
-11.1
1961-1971
2.2
2.1
2.7
28
1.5
1971-1981
2.2
2.2
2.7
2.1
0.0
1981-1991
2.1
2.0
2.8
1.2
4.9
1991-2001
1.9
1.8
2.6
2.0
6.6
(Compiled from various census reports)
During the decade,1991-2001,kerala’s growth rate was just 0.9 per cent per annum as against India’s 1.9
(table:1.1)similarly, between 1981-1991 and 1991-2001,the Muslim growth rate in India has shown a decrease
from 3.2 percent per annum to 2.9 per cent per annum. At the beginning of the 20 th century, Muslim growth
rates were slightly lower than that for Hindus. Since, then Muslims in India registered higher growth rates in
comparison to Hindus as well as the total population right through the last 100 years. Even during the influenza
1
Research Scholar, Central University of Kerala, Kasaragod
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decade of 1911-1921, India’s growth rate was zero and the Hindus registered a negative growth rate. Muslims
registered a minimal growth rate of just 0.1 percent per annum. The turning point of both the Hindu and Muslim
population growth rate was after independence. Muslims registered a negative growth rate of 1.8 percent per
annum in 1941-1951 resulting from large scale movement from India to Pakistan. on the other hand, Hindus
registered the highest growth rates of close to 2.4ipercent in the post independence decades population growth
hovered between 2.0-2.2 percent per annum whereas Muslim growth was between 2.7-2.8.Interestingly in the
just conclude decades, the decline noted in the growth rates of both communities is almost the same at
0.2 % per annum though they are at different levels. The real decline of the growth rate among Hindus started
during 1981-1991 with just a 0.2 percent point fall(2.2 in 19671-81 and 2.0 in 1981-91 ) ,which was maintained
during 1991-2001.
The regional variation in fertility in India is well known and many studies have emphatically concluded higher
fertility in the north, compared to the southern and western part of India (Bhat 1996,Guilmoto and Rajan
2001) .Kerala showed that fertility could be reduced rapidly through a programme of family planning. Fertility
was brought below replacement level and fertility differentials were reduced substantially.Fertility transition
is continuing among all major religious groups in India and sharp declines have occurred because of steep rise
in the use of contraceptives. However, differentials exist and will probably continue to exist for sometime with
changes in magnitude. In the earlier days, certain communities avoid the contraception methods due to their
religious believe. At present whole community shows a declining trend in the fertility rate.
OBJECTIVES
[1] To examine the rates and differentials in fertility among the different communities in Aralam
Panchayat of Kannur District
[2] To Explore the important factors determining fertility rate in AralamPanchayat of Kannur District
[3] To understand the perception about fertility and family planning behavior of the sample respondents.
The regional variation in fertility in India is well known and many studies have emphatically concluded higher
fertility in the north, compared to the southern and western part of India .M.Alagarajan and P.M kulkarni
(2008) examined that the fertility transition is continuing among all major religious groups in India. Data for
the study were drawn from the three rounds of India’s National family health survey. The analysis showed that
a fertility transition is in progress among Muslim as it is in other communities. The use of contraceptives has
become more widely prevalent with a majority of couples waiting to stop childbearing at two or three children.
Spatial variation is also noticeable with religious differentials being very small or negligible in some states.
However, fertility for all religious groups is expected to fall further towards the replacement level and possibly
to below this level.
P.H Reddy’s (2003) studied the differential growth rates of the Hindus and Muslims in India, their fertility
levels and family planning practices. This analysis is based on five national surveys conducted between 1970
and 1998.Analysing the role of proximate variables in the Hindu-Muslim differentials in fertility and
population growth, growth of Muslim population is higher than that of the Hindu population primarily because
of the fertility of the Muslim is statically and substantially higher than that of the Hindus. Since the problem
of growth of Hindus and Muslims populations, their fertility and practices of family planning by them is so
complex and controversial.
S James and S.B Nair (2005) the study pointed out that Muslim fertility in India follows nearly the same space
of transition as that of Hindus particularly in the period of accelerated fertility decline in the country. Based
on the experience both from the west and other developing countries, there is no reason to believe that fertility
transition will still once the process sets. Therefore, the sceptism about fertility transition among
Indian Muslims is unwarranted. These papers also analyze the proximate determinants of fertility among
Hindus and Muslims as against the socio economic differentials as causes for the differences in reproductive
behavior. This study indicates the mechanism by which the fertility reduction strategies are adopted by Hindus
and Muslims in India.
Based on data from the 11nd NFHS, P.M Kulkarni and M. Alagarajan (2005) analyzed that the issues of
religious differentials in population growth in India and then examines differentials in fertility. This analysis
shows that differences in fertility, especially between Hindus and Muslims, are not explained by differences
in socio-economic characteristics. This is true of differentials in contraceptive practice as well. However, the
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differences appear to be a passing phase in the process of fertility transition. Since all religious communities
in India have experienced substantial fertility declines and contraceptive practice has been well accepted. A
number of national level studies in the last few years have looked at the net influence of religion on fertility
(Bhagat 1996). Only a few studies showed however had ‘religious differentials in fertility ‘as their main
focus.(Bhat and zavier 2004,mishra 2004). Against this background the present study concentrates a detailed
analysis of the rates and differentials of fertility among different communities in Aralam panchayath in Kannur
district.
DATA SOURCE AND ANALYSIS
In the present study, both primary and secondary data are used. Primary data are collected from 60 different
community households of the Aralam panchayath through a well –structured and pre-tested
questionnaire.. Secondary data is obtained from various sources like Census Reports, Economic Review,
Economic Survey, Human Development Report, Panchayath Development Report and so on.
Determinants of Fertility in the Study Area
The socio economic characteristics to be controlled are those that possibly influence fertility. Demographic
researches for recognized education, income, residence (rural or urban), occupation or work participation are
possible factors that have on fertility. Since the fertility depressing influence of education is most commonly
observed in most societies. Compare the fertility of various religions in specific education classes are the basis
of the NFHS reports. They found that if among Muslims was higher than that of others in all the education
classes in various states.(Jeffery and Jeffery 2000).The present study carried out in this analysis are the
important factors determining fertility rate among the different communities.
MAJOR DETERMINANTS OF FERTILITY
Considering the important factor determining fertility rate among the sample respondents, age at marriage and
education are the proximate determinants of fertility.
Education, age at marriage and income
Hindu Female
Average fertility rate- 2.1
Muslim Female
22
Education, age at marriage and income
Christian Female
Education, age at marriage , income and type of
family
EDUCATION AND FERTILITY
Education of women affects their fertility behaviour, and plays a very important role in
demographic transition. Education and fertility are associated with a good number of related and un related
social, economic, psychological variables. The higher education among female will leads to delay in age of
marriage and decline in fertility. The educated women participate in more activity in family decision-making
and develop an attitude and practices favourable to birth control at a higher rate than the illiterate women
(Inkless and smith 1974)
Sl.no
1
2
3
Table 2 Level of education and Fertility rate of sample respondents
Education
Hindu
Muslim
Christian
Below SSLC
6
9
3
Above SSLC
14
11
17
Fertility rate
2.1
2.75
1.75
Source; survey data
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From the Sample Study of total 60 females from three different communities of AralamPanchayat, it is quite
evident that the fertility rate declines with respect to an increase their educational level. Further the study also
reveals the same trend in all communities. In order to analyze this relationship between the education and
fertility rate of different communities, a Dummy Variable Model is applied to the survey data for three
communities. For this purpose the following Model is used.
Yi =  +  Di + Ui
Where,
Yi – Fertility Rate of females from Different communities
Di – Dummy Variable representing Level of Education of females
Di = 1 for Level of Education below SSLC
Di = 0 for Level of Education above SSLC
The estimated model for Hindus, Muslims and Christians are given below
Yi = 2.088 + 0.037 Di
Yi = 2.125 + 0.539 Di
Yi = 2.508 + 0.588 Di
From the estimated regression model for Hindus, on an average, if the selected women is having an educational
level below SSLC (Di= 1), the fertility rate is equal to 2. 125. If the selected women belongs Hindu is having
an educational level above SSLC (Di= 0), the fertility rate is equal to 2. 088. from the estimated regression
model for Muslims, on an average, if the selected women is having an educational level below SSLC (Di= 1),
the fertility rate is equal to 3.047. If the selected women belongs Muslims is having an educational level above
SSLC (Di= 0), the fertility rate is equal to 2. 508. from the estimated regression model for Christians, on an
average, if the selected women is having an educational level below SSLC (Di= 1), the fertility rate is equal
to 2. 25. If the selected women belongs Christian is having an educational level above SSLC (Di= 0), the
fertility rate is equal to 1.662. The results are further tested for significance at 95% confidence level and further,
accepted the second hypothesis that, there exit fertility difference among women below SSLC and above
SSLC”.
AVERAGE FERTILITY RATE OF SAMPLE RESPONDENTS
The following table gives the fertility rate differences among different communities of the sample respondents
in relation with NFHS-3 Kerala statistics.
Table 3 Average fertility differences among different communities
Religion
NFHS-3in Kerala
Survey data
Hindus
1.53
2.1
Muslims
2.46
2.75
Christians
2.11
1.75
The present finding shows the similar trend in Kerala where Muslims reported a high a high fertility followed
by Hindus and Christians(table 1:2). In order to test the hypothesis, that there exist fertility differentials among
the different communities in the sample similar to the trend in Kerala, that is there is no significant difference
in the Population parameter and the sample estimate, student t test is applied in each communities in the
sample area and fertility rate differences exists among different communities.
Perception about Fertility Behavior and Effectiveness of Family Planning Practices
Various studies have shown that nuclear family and household structures encourage lower fertility than the
extended or joint household structures. Sahlin (1969) and libenstein (1975) have observed that in the
community where the number of widows and orphans increase due to mortality, the extended family provides
security and shelter for them. There is a strong relationship between family structure and fertility among
traditional societies. The present study carried out the analysis of perception about fertility behaviour and
effectiveness of family planning practices.
Practices of family planning methods
In India, the family planning Programme did not concentrate on a single method but adopted what is generally
described as “the cafeteria” that is making use of all the scientifically approved contraceptives. Apart from
family planning government relied up on to some extend education, knowledge, aptitude and economic
Programme to restrict the growth of population general salutary effect on fertility.
Fig. 1 Practice of family planning
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practice of family planning
100
80
60
yes
No
40
20
0
hindus
muslim
Christiants
AWARENESS ABOUT FAMILY PLANNING METHODS
Family welfare programme which is an essential part of the strategy of enlarging welfare, is being implemented
as a wholly voluntary programme and as an integral part of the over all strategy of growth, covering health,
maternity and child health care, family welfare, women’s rights and nutrition. Raising the level of education,
knowledge and aptitude of the people to has a general salutary effect on fertility.
Table 4 Distribution of sample respondents according to their awareness about family planning methods
Serial number
Awareness score
Hindus
Muslims
Christians
1
Good
2
11
2
Medium
11
6
7
3
Poor
7
14
2
4
Fertility rate
2.1
2.75
1.75
Source; survey data during 2010-2011
The awareness score is categorized as good, medium, and poor ,.In the good category includes 60 percent and
above, medium is 40 percent to 60 percent and poor category it is below 40 percent. Table 1.5 reveals that
awareness score is high among Christians. In order to analyze the relationship between the awareness score
and fertility rate of different communities, Chi square (x2) -test is applied in the above data. For this purpose
here we use the third hypothesis that increased Awareness about family planning methods reduces fertility
rate
Ho: Awareness about family planning methods reduces fertility rate
H1: Awareness about family planning methods does not creates any effect in fertility rate
The formula used to to test x2 is as follows.
X2 = [fo-fe]2/ fe
Here the calculated value of Hindus is 4.225, Muslims is 7.95,and christiants is 3.736. Degrees of freedom
is (3-1)(3-1). The level of significance is 0.05%.The table value is 9.448 and it is greater than the calculated
value. Here we rejected the alternate hypothesis H1, and accept the null hypothesis Ho. it is explained by the
X2 test that, there is difference in the fertility rate when awareness score of female increases. Here it’sconcluded
that, the Awareness about family planning methods reduces fertility rate in the sample area.
Opinion about preference of a child
In India, the earlier period especially in Kerala, for a long period there was a strong preference for son. Son
was considered to be an asset and the daughter, a burden because of the prevalence of dowry system. However,
as a result of educational progress the attitude underwent a change, at present both male and female children
give equal importance.
Table 5 Distribution of sample respondents according to the opinion about preference of a child
Serial number
Preference of child
Hindus
Muslims
Christians
1
I boy I girl
10
4
8
2
2 girl
1
3
2 boy
4
2
4
4
2 boy 1 girl
2
2
2
5
Depending on god’s desire
2
8
3
6
Other
2
3
3
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Opinion about education and family planning programme adoption status
The family planning Programme registered a remarkable rise in the couple protection rate. The rising level of
education, especially the education of females reduces the fertility. Age at marriage, literacy level especially
female literacy, access to and use of contraception and health care service also differ among different status.
Table: 6 Distribution of sample respondents and opinion about positive impact of education on family planning
Programme adoption status
Serial number
Opinion
Hindus
Muslims
Christians
1
Agreed
14
12
16
2
Disagreed
2
1
1
3
Indifferent
4
7
3
Considering the perception about fertility and family planning behaviour of the sample respondents, the
contraceptive use of family planning is higher than the Christian and Hindus as compared to Muslims.
Similarly the pattern of various inputs for developing fertility control programme may also have to be suitably
modified in view of the diversity of the factors and their influence, which regulated contraceptive behaviour
across different cultural and ecological regions. Thus, it is concluded that fertility rate is higher and family
planning awareness is less among Muslims compared to other communities. Among the three communities
fertility rate is less in Christian community it is because of the compulsory pre marriage course provided by
the community.
CONCLUSION
In the last few decades, in developed and less-developed countries alike, fertility rates have been steadily
declining. It was originally predicted that fertility would stabilize around replacement level. However, contrary
to expectation, fertility continued to fall. Similar to many developed countries, fertility in developing countries
like India were also on declining trend. The causes of low fertility are diverse and complex and vary between
regions. In many countries, the adverse implications of high fertility prompted governments to introduce
family planning programs.
Fertility decline is a historical process that has deeply refashioned in Kerala’s demographic landscape at both
regional and local levels. District fertility variations in Kerala are closely associated to social and economic
factors, though the nature of the causative link is somewhat unstable. The impact of regional policy efforts
appears blurred as fertility levels cut across state boundaries. Fertility decline includes an independent religious
component that can be traced to the inception of fertility behavior and the crucial role played by religious
practices. This spatial dimension points to the existence of significant self-sustaining diffusion mechanisms:
behavioral change spreads gradually across adjacent religious groups or cultural regions.
ACKNOWLEDGEMENT
I express my gratitude to Mrs Shaharban, Assistant Professor for their valuable suggestions and support given
for me to complete my work each and every field.
REFERENCES
[1] Alagarajan, Kulkarni P.M (2008): “Religious Differentials in Fertility in India: Is there a convergence”, ,
Economic and political weekly, November 29,pp 44-53.
[2] Alagarajan, M (2003): “An Analysis of Fertility Differentials by Religion in Kerala state: A Test of the
Interaction Hypothesis”, Population policy and Research Review, 22,pp 557-74.
[3] Alagarajan, M and P.M kulkarni (1998):”Fertility Differentials by Religion in kerala-A period Parity Progression
Ratio Analysis”, Demography India, 27(1), pp 213-28.
[4] James K S and Sajini B Nair: 2005- Accelerated Decline in fertility in India since the 1980’s Trends among
Hindus and Muslims, Economic and political weekly, January 29, 2005.
[5] Reddy P H(2003 ):”Religion, population growth, fertility and family planning practice in India”, Economic and
political weekly, August 16 .
[6] Irudaya Rajan S: 2005-District level fertility estimates for Hindus and Muslims, Economic and political weekly,
January29, 2005 pp 437-446.
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CREATING OPTIMAL PORTFOLIO FOR DIVERSIFICATION IN
EMERGING MARKETS
ABSTRACT
Prakhar Porwal1
This paper studies how optimal portfolios are created through diversification in emerging markets of the
world. It shows the risk and return performance of the emerging market economies and how an efficient
protfolio is created using different models. The use of mean - variance optimisation and Markowitz’s
efficient frontier results in creation of portfolios that are highly concentrated in some of the chosen asset
class based on historical data. The Black - Litterman model helps in mitigating this problem. This model
incorporates the views of investors about the different assets and the confidence levels associated with
them. Incorporating these views help in creation of model for asset allocation that are not concentrated.
The following study shows the efficient frontier generation using Markowitz mean - variance
optimisation and Black - Litterman model separately in context of emerging economies’ markets. The
following study uses MSCI EM (Emerging Markets) Index as the representative of emerging economies’
markets. The data published for the various countries’ indices by MSCI has been used. The results of the
research indicate that use of Black – Litterman model results in better diversification of portfolio when
compared to mean – variance approach for emerging markets.
KEYWORDS: Mean – variance optimisation, efficient frontier, emerging markets, Black – Litterman
model, reverse optimisation
INTRODUCTION
Asset allocation in a portfolio is a very crucial task for any portfolio manager. Over the time, many different
models have been designed for the same and still the most efficient model may yet to come. One of the most
important model was developed by Professor Harry Markowitz (1952) when he gave the concept of efficient
frontier in the Journal of Finance. It is also referred to as the mean – variance framework and is not efficient
due to following reasons: Firstly, the inputs required for the model (means, variances, covariances) are not
known, and must be forecast; greater uncertainty in the inputs leads to less reliability in the efficient frontier.
Secondly, small changes in the inputs can cause large changes in the efficient frontier resulting in overly
frequent rebalancing of portfolio. The weights are highly sensitive to the changes in the expected return from
the assets.
Some other models that were developed are Capital Asset Pricing Model (CAPM) which describes the
relationship between risk and return for individual assets; the Arbitrage Pricing Theory (APT) which assumes
returns from a multifactor model such as a macroeconomic factor model or a fundamental factor model.
LITERATURE REVIEW
Investments in emerging financial markets is playing an important role as investors are always on look out for
markets giving better returns for an additional risk component. It has been established by Grubel (1968), Levy
and Sarnat (1970), Lessard (1973), Solnik (1974) that substantial gains occur from internationally diversified
portfolios. Price (1994), Stanley (1995), Barry and Lockwood (1995) and Barry et al. (1998) found that
emerging markets have experienced low correlation with the developed markets which helps the investors to
obtain diversification benefits from emerging markets. This paper focuses on getting the optimal portfolio in
emerging markets using Black-Litterman model.
The Black – Litterman model was introduced in an internal Goldman Sachs document in 1990. The paper was
published in 1991 in the Journal of Fixed Income and detailed in 1992 in Financial Analysts Journal. This
model uses a technique referred to as reverse optimisation to solve for implied returns of a portfolio which are
1
Post Graduate Programme in Management 2012-2014; Indian Institute of Management Indore
SR 7 – 118 , IIM Indore Campus; Prabandh Shikhar , Rau-Pithampur Road; Indore-453331; Madhya Pradesh, India
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based on the market capitalisation of the asset classes being considered for the portfolio. It also uses the views
of investor about the stocks/ assets/ sectors/ countries; combine them with market equilibrium returns to
generate expected returns vector.
METHODOLOGY OF STUDY
Black-Litterman model uses the reverse optimisation and views of investor to remove the problems caused by
the mean – variance framework. It represents an asset allocation model, but it is essentially a model to forecast
expected returns. Once we know the expected returns, we can use the standard optimisation techniques to
arrive at the optimal portfolio. We start with the concept of implied equilibrium excess returns. The investors’s
utility function is described below:
U = wTR – ( 1 ) AwTSw
2
U = Investor’s Utility Function
w = Market Weights
R = Implied Equilibrium Excess Returns
A = Risk Aversion Parameter
S = Variance Covariance Matrix
Variance Covariance Matrix S is an (n X n) matrix, where n is the number of assets, sectors, countries, etc.
We maximize the investor’s utility U subject to constraint that sum of all weights should be equal to 1, i.e. ,
Σw = 1. We do this by taking the derivative of U with respect to weight w.
dU
= R – ( 1 ) * 2 * A * S * w = R-ASw
2
dw
To maximise,
dU
=0
dw
R-ASw = 0
Rather than solving for optimal weights, Black-Litterman argued that weights are already observed in the
market and therefore, they can be computed using market capitalisation. We reverse the problem. We solve
for R and get :
R = ASw
The risk aversion parameter A can also be written as
A=
(E(Rm) - R f )
 m2
(E(Rm) - Rf ) = Excess Returns on market
σ m2 = Variance of the market
If we are in agreement with excess returns generated, we should hold the market portfolio because in absence
of any other view, these returns will take us back to the market weights. From hereon, I will use the symbol π
for implied equilibrium excess returns vector.
π = Implied equilibrium excess returns vector
Implied equilibrium excess returns vector π is an (n X 1) matrix, where n is the number of assets, sectors,
countries, etc.
Now we will discuss about views. We can have absolute views as well as relative views. For example, asset A
will have return of 2% is an absolute view and return of asset A will be greater than return of asset B by 3%
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is a relative view. Relative views are more common in investment world and have been used in the below
study.
How to work with the views has been explained below: Suppose there are there are three views: View 1, View 2, and View 3. We write these views in a views vector
Q.
Q
Q1
Q2
Q3
=
In general, views vector Q is a (n X 1) matrix, where n is the number of views. The problem is that by looking
at views vector Q, we do not know what the views are all about. Therefore, we need to have a matrix to
establish links between the views and what the views are about. It is called a link matrix P. Each row of the
matrix represents a view. A positive view is +1 and a negative view is -1. An example is shown below for two
views and three assets: A
B
C
 1 1 0
1 0  1
View 1
View 2
It is an (m X n) matrix, where m is number of views and n is number of assets, sectors, countries, etc. Each
row represents a view and sum of each row is 0.
When we talk about views, we are not 100% sure about these views and hence these views carry an error
component which provides us with an uncertainty about views.
ε = Uncertainty about views
Q+ε =
Q1
Q2
Q3
+
1
2
3
We make an assumption that the error terms ε are normally distributed.
1
2
3
~
N
0
0
0
Mean = 0
,
11 12 13
21 22 23
31 32 33
Uncertainty about views ( Ω )
Black and Litterman have suggested that the elements of Ω can be calculated with the following formula: Ω = τ * P * S * PT
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τ ( Tau ) is a scalar. Black – Litterman have used a value of 0.025, but most of the researchers have used a
value of 1. So, in this analysis also, a value of 1 is used. As the uncertainty of views is expressed by Ω, therefore
the confidence in views is expressed as Ω-1. The matrix Ω is an (m X m) matrix, where m is the number of
views.
Black – Litterman formula gives an estimate of excess returns by calculating a weighted average of two
components :Implied equilibrium excess returns π. The weight attached to it is the confidence of returns (τS)-1.
Views vector Q. The weight attached to it is confidence of views PTΩ-1. We take the transpose to facilitate the
matrix multiplication.
Black – Litterman formula:2nd term of formula  [ ( τS)-1π + (PTΩ-1)Q ]
1st term of formula  [( τS)-1 + PTΩ-1P ]-1
The first term in the formula is used to ensure that sum of all weights is equal to 1. It means that
[( τS)-1 + PTΩ-1P ]-1 * ( τS)-1 + [( τS)-1 + PTΩ-1P ]-1 * (PTΩ-1) = 1
So the formula is written as :
(E(Rm) – Rf ) = Excess Returns on markets
(E(Rm) – Rf ) = [( τS)-1 + PTΩ-1P ]-1 * [ ( τS)-1π + (PTΩ-1)Q ]
The result obtained is an (n X 1) matrix of excess returns which represents a mix of equilibrium returns
(estimated using market weights) and the views. Here, n is the number of assets, sectors, countries, etc.
This study is based on eight largest emerging and developing economies by either nominal or inflation –
adjusted Gross Domestic Product (GDP) and MSCI EM (Emerging Markets) Index is the benchmark index. I
have used monthly closing prices starting from April 2003 to March 2013. This data has been taken from the
website of Morgan Stanley Capital International (MSCI).
FINDINGS
The eight economies of the emerging markets considered for the study are : Brazil, China, India, Indonesia,
Korea, Mexico, Russia, and Turkey. Monthly closing prices have been taken to compute the return. Risk and
return profile of each country’s index is shown in Table 1 and Figure 1.
It can be seen from the table that Indonesia gives the highest return of 34.46% with a risk of 32.26% and Russia
gives the lowest return of 18.90% with a risk of 35.59%. Mean – variance approach creates undiversified,
concentrated portfolios. I have presented an efficient frontier in this study. Efficient frontier shows the returns
on the vertical axis and the risk (standard deviation) on the horizontal axis. Efficient frontier is a locus of
points, which represents a different combination of risk and return on an efficient asset allocation, where an
efficient asset allocation is one that maximizes return per unit risk. This is shown in Figure 2. The most efficient
portfolio is the one, which has the highest sharpe ratio. Figure 3 shows the allocation to different countries in
the most efficient portfolio. It can be clearly seen that it is a highly concentrated porfolio.
Table 1 Historical Risk – Return profile of different countries (April 2003 – March 2013)
Country
Risk (%)
Return (%)
32.43%
27.20%
Brazil
28.24%
20.56%
China
32.29%
23.32%
India
Indonesia
Korea
Mexico
Russia
Turkey
32.26%
29.20%
23.72%
35.59%
40.50%
34.46%
20.20%
22.24%
18.90%
32.67%
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Return (%)
33.00%
32.6746%
28.00%
27.2025%
23.00%
22.2441%
18.00%
22.00%
23.3208%
20.5559%
20.2028%
27.00%
18.8991%
32.00%
37.00%
42.00%
Risk (%)
Figure 1 Scatter plot of Risk–Return profile of different countries (April 2003 – March 2013)
35.00%
Return (%)
33.00%
31.00%
29.00%
27.00%
25.00%
23.00%
21.00%
22.00%
24.00%
26.00%
28.00%
30.00%
32.00%
Risk (%)
Figure 2 Efficient Frontier showing historical return vs risk
7.03%
5.24%
Brazil
China
India
Indonesia
31.55%
Korea
56.19%
Mexico
Russia
Turkey
Figure 3 Pie chart showing allocation to the countries in the efficient portfolio
To remove the problem of concentrated portfolios, Black-Litterman proposed use of implied returns. Implied
returns are the returns generated if all the investors have identical views leading to a competitive market. To
calculate implied returns, we need risk aversion parameter A. Risk aversion parameter is the ratio of the excess
returns to the variance of the benchmark portfolio. It is represented as :
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A=
(E(Rm) - R f )
 m2
Rm is return on benchmark MSCI EM (Emerging Markets) Index, Rf is risk-free rate, σ2m is variance of MSCI
EM (Emerging Markets) Index. For risk-free rate, I have taken 5 year US treasury rate curve. The risk aversion
parameter (A) has been calculated as 2.3798. The risk aversion parameter characterizes the risk-return trade
off. The variance-covariance matrix for the countries’ indices is shown in Table 2.
Table 2 Variance – covariance matrix of countries’ indices
Brazil
China
India
Indonesia
Korea
Mexico
Russia
Turkey
Brazil
0.0088
0.0058
0.0063
0.0054
0.0054
0.0048
0.0076
0.0072
China
0.0058
0.0066
0.0055
0.0045
0.0047
0.0034
0.0050
0.0055
India
0.0063
0.0055
0.0087
0.0059
0.0053
0.0042
0.0058
0.0072
Indonesia
0.0054
0.0045
0.0059
0.0087
0.0057
0.0043
0.0056
0.0067
Korea
0.0054
0.0047
0.0053
0.0057
0.0071
0.0042
0.0058
0.0062
Mexico
0.0048
0.0034
0.0042
0.0043
0.0042
0.0047
0.0051
0.0047
Russia
0.0076
0.0050
0.0058
0.0056
0.0058
0.0051
0.0106
0.0066
Turkey
0.0072
0.0055
0.0072
0.0067
0.0062
0.0047
0.0066
0.0137
In Table 3, we have shown the market capitalisation of each of the country and market capitalisation weights
have been calculated for the same. It is seen that highest weight belongs to China (39.01%) and the lowest
weight belongs to Turkey (3.26%). Table 4 shows the implied returns of the countries’ indices.
Table 3 Market capitalisation and weights of the countries’ indices
Country
Market Capitalisation (billion USD)
% Market Cap
1230
12.98%
Brazil
3697
39.01%
China
1263
13.33%
India
397
4.19%
Indonesia
1180
12.45%
Korea
525
5.54%
Mexico
875
9.23%
Russia
309
3.26%
Turkey
Table 4 Total implied returns of the countries’ indices (April 2003 – March 2013)
Country
Risk (%)
Total Implied Returns
32.43%
2.88%
Brazil
28.24%
2.73%
China
32.29%
2.81%
India
32.26%
2.64%
Indonesia
29.20%
2.65%
Korea
23.72%
2.35%
Mexico
35.59%
2.84%
Russia
40.50%
2.91%
Turkey
*Total Implied Return = Implied Excess Return + Risf-free Rate = π + Rf = ASw + Rf
We use the data of total implied returns to generate an efficient frontier for this portfolio. Figure 4 shows the
efficient frontier thus obtained. Figure 5 shows the pie chart to show the percentage allocation to each
country’s index in most efficient portfolio. By comparing Figure 3 and Figure 5, we learn that the efficient
portfolio generated using implied returns is more diversified than the portfolio generated by mean – varaince
method.
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2.89%
Return (%)
2.84%
2.79%
2.74%
2.69%
2.64%
2.59%
2.54%
2.49%
2.44%
22.00%
24.00%
26.00%
28.00%
30.00%
32.00%
Risk (%)
Figure 4 Efficient frontier obtained using implied returns
3.51%
9.85%
14.25%
Brazil
2.55%
China
India
12.80%
Indonesia
Korea
Mexico
4.28%
38.90%
Russia
Turkey
13.87%
Figure 5 Pie chart showing allocation to the country’s index in the efficient portfolio using implied returns
The implied returns help in obtaining results from Black –Litterman model. Implied returns work when all
investors have same sentiments about markets. However, in real scenario, investors feel differently about the
market. Black – Litterman model helps in integrating the subjective views of investors with the implied returns
resulting in a diversified portfolio. The views of investors are expressed in the form of probability distribution.
For this study, I have taken three relative views for the investor which are mentioned here:View 1: - Mexico outperforms Brazil by 1%
View 2: - Indonesia outperforms Russia by 2%
View 3: - China outperforms India by 2%
We write these views in a views vector Q.
Q =
0.01
0.02
0.02
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Link matrix P: 1
View 1
View 2
View 3
1
0
0
2
3
0
0
1
0
0
1
4
5
0
1
0
6
0
0
0
1
0
0
7
8
0
1
0
0
0
0
1=Brazil; 2=China; 3=India; 4=Indonesia; 5=Korea; 6=Mexico; 7=Russia; 8=Turkey
From calculations,
0.003940619
0.001404117
-0.000300193
Ω = 0.001404117
0.007981778
-0.00059241
-0.000300193
-0.00059241
0.004354318
Return (%)
By using the Black – Litterman formula, we have obtained the efficient frontier as shown in Figure 6.
Allocation to different countries’ indices in most efficient portfolio is depicted in Figure 7.
2.55%
2.45%
2.35%
2.25%
2.15%
22.50%
23.50%
24.50%
25.50%
26.50%
27.50%
28.50%
Risk (%)
Figure 6 Efficient frontier obtained using Black – Litterman model
14.27%
15.00%
Brazil
China
2.86%
India
15.00%
12.17%
Indonesia
Korea
Mexico
10.69%
15.00%
Russia
Turkey
15.00%
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Figure 7 Pie chart showing allocation to the countries’ indices in the most efficient portfolio using Black – Litterman
model
On comparing Figure 3 and Figure 7, we can clearly see that the efficient portfolio generated using Black –
Litterman model is much more diversified than the portfolio generated by mean – varaince method.
On comparing Figure 4 and Figure 6, it can be established that Black – Litterman model gives the most
efficient portfolio with maximum return and minimum risk as compared to efficient portfolio obtained using
implied returns.
CONCLUSION
This paper describes in detail the the development of inputs for the Black – Litterman model (1992) which
enables to integrate the views of an investor with the implied returns obtained from market capitalisation
weights. This model has helped in overcoming the problems posed by Markowitz (1952). The Black –
Litterman model has been used in the context of emerging economies using MSCI country indices. The data
for different countries’ indices has been taken for the time period April 2003 to March 2013. Using the implied
returns, final portfolio weights have been calculated. The major conclusion from the research is that the Black
– Litterman model helps in arriving at the best optimal portfolio with maximum return and minimum risk as
compared to the Markowitz mean – variance or the implied returns method.
A major advantage to the above study is that the indices maintained by the MSCI conform to the Global
Industry Classification Standard (GICS) developed by MSCI and Standard & Poor’s (S&P). This paper can be
used for more in-depth analysis to make Black – Litterman model a more efficient method for portfolio
optimisation.
REFEREFNCES
[1] Bevan, A., and Winkelmann, K. (1998). Using the Black-Litterman Global Asset Allocation Model: Three Years
of Practical Experience. Fixed Income Research, Goldman, Sachs & Company, December.
[2] Black, F. and Litterman, R. (1990). Asset Allocation: Combining Investor Views with Market Equilibrium.
Fixed Income Research, Goldman, Sachs & Company, September.
[3] Black, F. and Litterman, R. (1991). Global Asset Allocation with Equities, Bonds, and Currencies. Fixed Income
Research, Goldman, Sachs & Company, October.
[4] Black, F. and Litterman, R. (1992). Global Portfolio Optimization. Financial Analysts Journal,
September/October, 28-43.
[5] He, G. and Litterman, R. (1999). The Intuition Behind Black-Litterman Model Portfolios. Investment
Management Research, Goldman, Sachs & Company, December.
[6] Herold, U. (2003). Portfolio Construction with Qualitative Forecasts. Journal of Portfolio Management, Fall,
61-72.
[7] Markowitz, H.M. (1952). Portfolio Selection. The Journal of Finance, March, 77-91.
[8] Michaud, R.O. (1989). The Markowitz Optimization Enigma: Is Optimized Optimal? Financial Analysts
Journal, January/February, 31-42.
[9] Satchell, S. and Scowcroft, A. (2000). A Demystification of the Black-Litterman Model: Managing Quantitative
and Traditional Construction. Journal of Asset Management, September, 138-150.
[10] Sharpe, W.F. (1964). Capital Asset Prices: A Theory of Market Equilibrium. Journal of Finance, September,
425-442.
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EVALUATION OF EFFECTIVENESS OF SALES PROMOTIONAL
TOOLS ON SALES VOLUME AND CHANNEL MEMBERS’
PERCEPTIONS [AN OVERVIEW OF DELHI REGION]
ABSTRACT
Mr. Kush kr. Patwa 1
Mr. Love kumar Patwa 2
Dr. Sunil jakhoria3
The objective of this research paper is to observe if sales promotion tools to be adopted at a given time
affect the company’s sales volume and also to evaluate the nature of sales promotion activities in Delhi,
The main hypotheses there is no significant effect of sales promotion tools on sales volume, profitability,
no of customers and overall performance of particular Industry have been accepted. Our findings indicate
that customers are influenced by sales promotions 35% and advertising 26.7% and a minimum of 16.7%
of the customers say publicity by words of mouth, survey show that 31.7% of the customers consider
that price off is one of the most effective method, 23.8% of the customers say discount and the least
6.2% of the customers reflect that others technique (coupons, samples and lucky draws) of sales
promotion that Industry use to push sales. As the dealers interact with customers regularly and directly
than the manufacturer, it would be valuable for the CPG companies to integrate perceptions while
forecasting sales promotion strategies.
KEYWORDS: Promotional tools, Sales volume and sales promotion strategy: CPG Industry
INTRODUCTION
The ultimate objective of every business is to increase the sale of goods that it deals in. Several techniques can
be adopted for the achievement of this goal; some direct while others indirect. Promotion is one of the variables
through which information regarding products or services is being communicated to customers to change their
attitude and behaviour. Marketers are concerned with effective utilization of promotion-mix to increase sales
and market share.
Promotion is the communication with the customers to pursue them to buy the product. It is the duty of the
marketing manager to choose the communication media and blend them into an effective promotion
programme. These are more than one type of tools used to promote sales. The combination of these tools with
a view to maintain and create sales is known as promotion mix. Promotion mix is the name given to the
combination of techniques used in communicating with customers. There are four tools of promotion mix viz.
advertisement, personal selling, publicity and sales promotion. These are called elements of promotion mix.
ANALYSIS OF CPG COMPANIES IN INDIA: FMCG in India has a strong and competitive MNC
presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4
billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population
are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded
products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per
capita consumption as well as low penetration level, but the potential for growth is huge The big firms are
growing bigger and small-time companies are catching up as well. According to the study conducted by AC
Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen
companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three
followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and
Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing.
1
Research Scholar, Faculty Of Art Science And Commerce,; M.I.T.S. University, Lakshamangarh, Sikar, Rajasthan
3
Dean; Faculty Of Art Science And Commerce,; M.I.T.S. University, Lakshamangarh, Sikar, Rajasthan
2
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Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account
for 35 of the top 100 brands.
ROLE OF SALES PROMOTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
To encourage the existing customers for larger purchase.
To enhance goodwill of the business.
To simplify the efforts of sales force & motivate them for larger purchase.
To educate customers/dealers & salesmen about the techniques of sales promotion.
To promote larger sales in certain specified segments of market.
To counteract competition.
To facilitate coordination & proper link between advertising and personal selling.
To search for a new market & to introduce new products in to the market.
To present a counter promotional program against the competitors.
To prove the product better in quality & users.
To increase patronage habits among customers.
STATEMENT OF THE PROBLEM
Connoisseur management is core for developing in particular value and efficiency of overall the Industry,
which constructs business organization sustainable in changing political and economic environment. Since
couple of years more and number of corporate sector companies have experienced the critical problems of
deciding promotional strategy and particularly sales promotion techniques to prevail the customers. Moreover,
on the other hand, sales promotion initiatives taken without keeping the long term objectives of the business
may attenuates the brand. It is felt that management practices of intending and implementing promotional
decisions should be glowing researched and rational to justify the investment on promotions. It has been felt
that large gap remain what has been accomplished and what is remaining.
OBJECTIVES OF THE STUDY
(i)
(ii)
(iii)
To understand role of sales promotion tools in increase customers, sales volume, profits and
development of overall the Industry.
To study Indian consumer packaged goods sector and determine the practices adopted by the
leading Industry.
To assess importance and techniques of promotion.
Alireza Karbasivar and Hasti Yarahmadi, (2011) examined the effect of four external cues [window display,
credit card, promotional activities (cash discount, free product)] on consumer impulse buying behavior. A
conceptual model adapted from Churchill and Peter (1998) is proposed and verified by empirical data. The
sample size was small (n=275) and data collection took place in Abadan, Iran. They defined four hypotheses
and Statistical Packages for Social Sciences’ (SPSS) and LISREL software is used for the data analysis. The
result of the present study proves that there is a pivotal relationship between window display, credit card,
promotional activities (discount, free product) and consumer impulse buying behavior.
Corinna Hawkes, (2009) Sales promotions are widely used to market food to adults, children, and youth. Yet,
in contrast to advertising, practically no attention has been paid to their impacts on dietary behaviors, or to
how they may be used more effectively to promote healthy eating. The review finds that while sales promotions
lead to significant sales increases over the short-term, this does not necessarily lead to changes in foodconsumption patterns. Nevertheless, there is evidence from econometric modeling studies indicating that sales
promotions can influence consumption patterns by influencing the purchasing choices of consumers and
encouraging them to eat more. These effects depend on the characteristics of the food product, sales promotion,
and consumer.
In another research study titled “Effects of promotions of the three media on book sales” Zhang W.,
2008.evaluated the effects of three main media of television, newspapers and the Internet on the books sold
over ten million copies in 2006. He analyzed the importance of three media of newspaper, television and the
Internet on the increased sales volume, education and readers. This research, which was an analytical research,
found out that media; as the most effective marketing channels in the book publishing industry, play important
roles in promotion of books.
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White, L. and V. Yanamandram, (2007) “Sales promotional tools have the ability to attract new customers and
maintain loyal customers and if an organization is interested in maintaining its present customers, it should
plan to allocate proper attention for them in its marketing plans. Finally, sales promotional tools are excellent
tools for maintaining present customers and rewarding them for their continued relations with organizations.”
Lawnivzak (2007) evaluated the role of public relations in a global contest for sales. By considering political
solutions and economic models in a market based economy, he discussed about strong economies of the world
such as United States of America, China, Germany and…and also developing countries. The results obtained
from this research paper indicate that political, economical and social changes on the move from socialism
toward the market based economy need to utilize public relations industry with new challenging approach.
Mir-zadeh and Nazemi (2005) evaluated the promotional effect of presence in trade fairs and exhibitions on
commercial success of production firms in a research study titled “Evaluation of presence of production firms
in the Khorasan (Province) International Fairs on their commercial success.” As a result of this study, it was
mentioned that sixty percent of the understudy firms evaluated the relationship between trade fair/exhibition
and sales as being high. So, it was concluded that part of the sales increase of firms in the months following
their presence in the trade fair/exhibition could be attributed to such presence. Based on the obtained results,
presence in fairs and exhibitions is an effective tool for increasing sales and also competitive ability of firms.
Forty five percent (45%) of the computer firm managers and thirty seven percent (37%) of home appliance
mangers consider taking part in trade exhibitions/fairs as an effective tool toward increasing their local sales
of products.
Sales promotion when implemented effectively often results in an increase in short term sales figure. This
explains the inclination of corporations to put in a large percentage of their funds in carrying out various sales
promotion activities. However variations occur in effects of sales promotion based on the attractiveness of the
concerned brand (Alvarez, 2005).
Tavakoli-zadeh and Amir-shahi (2005) in a research evaluated the effects of sales promotional tools on loyalty
of customers in commercial banks in Tehran. The results of this research revealed that there was a significant
relationship between sales promotional tools and loyalty of customers, but the amounts of this effect were
different for each one of the tools and their facets.
RESEARCH METHODOLOGY
Research Design: The topic is theoretical and descriptive in nature.
Sources of Data collection:
Primary data: through interviews with customers, entrepreneurs and sales force.
Secondary data: through document or book records of the industry performing in CPG sector.
Methods of Data collection: For collection of data the following instruments have been used: Questionnaire,
phone, E-mail and Interview etc. prepared in view of objectives of the study.
Sample Size: The exact sample size of the study is restricted with 450 respondents.
Sample Area: The study carried out in the geographic location of Delhi region.
Measurement and Data Analysis: SPSS was used for analysis purpose of the collected data. Percentage, Chi
square test and P- value etc. are used to test the various hypotheses.
FORMULATION OF HYPOTHESIS
1: There is no significant variation among sales promotion techniques of the particular Industry.
2: There is no significant effect of sales promotion tools on sales volume, profitability, no of customers and
overall performance of particular Industry.
ANALYSIS AND INTERPRETATION
Testing of Hypotheses: For Customers
Q. Which promotion technique does make you to purchase your products?
Testing the data using the chi-square test
Ho: All four methods equally make you purchase the products
Ha: All four methods differently make you purchase the products
Promotion methods
Advertising
Observed O
64
Expected E
60.0
Residual
4.0
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Personal selling
Sales promotion
Publicity by mouth
Total
52
84
40
240
60.0
60.0
60.0
-8.0
24.0
-20.0
Test Statistics: Q. which promotion technique does make you to purchase your products?
17.600a
3
.001
Chi-Square
dof
Asymp. Sig.
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 60.0.
Interpretation: result of the chi-square test: the X² (3) = 17.600, p < 0.05, Therefore, null hypothesis is
rejected as significance is less than 5%.
Conclusion: customers are differently influenced by each of the promotion methods, most through sales
promotion & least through Publicity by mouth.
Q. Which technique of sales promotions does Industry use to push sales?
Ho: There is no variation perceived by customers as to the techniques of sales promotions used by Industry to
push sales
Ha: There is variation perceived by customers as to the techniques of sales promotions used by Industry to
push sales
Sales promotion methods
Price off
Extra quantity
Discount
Premium & bonus packs
Others
Total
Observed O
76
43
57
49
15
240
Expected E
48.0
48.0
48.0
48.0
48.0
Residual
28.0
-5.0
9.0
1.0
-33.0
Test Statistics: Q. which technique of sales promotions does Industry use to push sales?
41.250a
4
.000
Chi-Square
dof
Asymp. Sig.
a. 0 cells (.0%) have expected frequencies less than 5. The min. expected cell frequency is
48.0.
Interpretation: The chi-square test: the X² (4) = 41.250. It is interpreted that the significance value is 0.000
< 0.05, therefore, null hypothesis is rejected as significance is less than 5%.
Conclusion: there is variation perceived by customers as to the techniques of sales promotions used by Industry
to push sales. Customers think different promotion methods are used by companies, most think that price off
& discounts are used.
Q. Which technique of sales promotions is more effective to encourage customers to buy?
Ho: There is no significant variation in the effectiveness of the four techniques in motivating consumers to
buy.
Ha: There is a significant variation in the effectiveness of the four methods in motivating consumers to buy.
Observed O
100
49
19
57
225
Price off
Extra quantity
Contests
Premium & bonus packs
Total
Expected E
56.3
56.3
56.3
56.3
Residual
43.8
-7.3
-37.3
.8
Test Statistics: Q. which technique of sales promotions is more effective to encourage customers to buy?
Chi-Square
dof
Asymp. Sig.
59.640a
3
.000
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Interpretation: results of Chi-Square Test: the X² value is 59.640 with 3 degree of freedom, which results in
a p-value of 0.000. Since 0.000 is less than 0.05, therefore, null hypothesis is rejected as significance is less
than 5%.
Conclusion: there is a significant variation in the effectiveness of the four methods in motivating consumers
to buy. Customers do not perceived all the sales promotion techniques to be equally effective. 11 respondents
who answered "others" have been excluded.
Q What is the purpose of the Industry to bring techniques for sales promotion?
Ho: There is no significant variation in the objectives of the company to bring techniques for sales promotion
Ha: There is significant variation in the objectives of the company to bring techniques for sales promotion
Category
Observed O
Expected E
Residual
To neutralize completion effect
To increase sales of product out of
demand
22
39
40.0
40.0
-18.0
-1.0
To push sales in off season
To increase sales
Total
47
52
160
40.0
40.0
7.0
12.0
Test Statistics: Q. what is the purpose of the Industry to bring techniques for sales promotion?
Chi-Square
dof
Asymp. Sig.
12.950a
3
.005
rejected as significance is less than 5%.
Conclusion: there is significant variation in the objectives of the company to bring techniques for sales
promotion.
Conclusively: The chi square test is ascertained that customers are influenced by each of the promotion
methods, mainly through sales promotion & advertising. The company to bring techniques for sales promotion
with lot of objectives including increase in sales based on customers demand, No promotional technique is
better than the other but all are equally effective and all of sales promotional techniques encourage the
customers to buy and hence push sales.
For Dealers
Q. Have you got chance to contribute in dealers’ sales contest, which conducted by the CPG/FMCG supplying
company?
Ho: There is no significant variation in opportunities to Dealers in the past to participate in dealers’ sales
contest, which conducted by the CPG/FMCG supplying company
Ha: There is significant variation in opportunities to Dealers in the past to participate in dealers’ sales contest,
which conducted by the CPG/FMCG supplying company
Category
Yes
No
Total
Observed O
62
64
126
Expected E
63.0
63.0
Residual
-1.0
1.0
Test Statistics: Q. Have you got chance to contribute in dealers’ sales contest, which conducted by the
CPG/FMCG supplying company?
Chi-Square
dof
Asymp. Sig.
.032a
1
.859
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Interpretation: chi-square test: the X² (1) = .032. It is interpreted that the p > 0.05. Therefore, null hypothesis
is accepted.
Conclusion: there is no significant variation in opportunities to dealers in the past to participate in dealers’
sales contest, which conducted by the CPG/FMCG supplying company.
Q. Does the Industry provide to you various types of allowances?
Ho: There is no significant variation in frequency with which dealers get various types of allowances from the
Industry
Ha: There is significant variation in frequency with which dealers get various types of allowances from the
Industry
Frequency of getting
Sometimes
Rarely
Often
Never
Always
Total
Observed O
31
15
37
9
43
135
Expected E
27.0
27.0
27.0
27.0
27.0
Residual
4.0
-12.0
10.0
-18.0
16.0
Test Statistics: Q. Does the Industry provide to you various types of allowances?
Chi-Square
dof
Asymp. Sig.
31.111a
4
.000
< 0.05, therefore, null hypothesis is rejected as Significance is less than 5%.
Conclusion: there is significant variation in frequency with which dealers get various types of allowances from
the Industry. Most of dealers getting trade allowances regularly.
Q. Does your supplier offer Retailer / Wholesaler gift to enhance better relationship?
Ho: There is no significant variation in frequency with which supplier offer Retailer / Wholesaler gift to
enhance better relationship
Ha: There is significant variation in frequency with which supplier offer Retailer / Wholesaler gift to enhance
better relationship
Frequency of getting
Sometimes
Rarely
Often
Never
Always
Total
Observed O
43
19
37
11
25
135
Expected E
27.0
27.0
27.0
27.0
27.0
Residual
16.0
-8.0
10.0
-16.0
-2.0
Test Statistics: Q. does your supplier offer Retailer / Wholesaler gift to enhance better relationship?
Chi-Square
25.185a
dof
4
Asymp. Sig.
.000
rejected as Significance is less than 5%.
Conclusion: there is significant variation in frequency with which supplier offer Retailer / Wholesaler gift to
enhance better relationship.
Q. Does your supplier support Retailer / Wholesaler in joint or cooperative advertisement for enhancement of
sales?
Ho: There is no significant variation in the support supplier gives Retailer / Wholesaler in joint or cooperative
advertisement for enhancement of sales
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Ha: There is significant variation in the support supplier gives Retailer / Wholesaler in joint or cooperative
advertisement for enhancement of sales
Company support
Sometimes
Rarely
Often
Never
Always
Total
Observed O
45
25
31
13
21
135
Expected E
27.0
27.0
27.0
27.0
27.0
Residual
18.0
-2.0
4.0
-14.0
-6.0
Test Statistics: Q. does your supplier support Retailer / Wholesaler in joint or cooperative advertisement for
enhancement of sales?
Chi-Square
dof
Asymp. Sig.
21.333a
4
.000
< 0.05, therefore, null hypothesis is rejected as Significance is less than 5%.
Conclusion: there is significant variation in the support supplier gives Retailer / Wholesaler in joint or
cooperative advertisement for enhancement of sales.
Conclusively: The chi square test interprets that the dealers do get various types of trade allowances from the
Industry, most of them getting these trade allowances regularly and the dealers also get opportunity to
participate in dealers contest. The suppliers company also support Retailer / Wholesaler in joint or cooperative
advertisement for enhancement of sales.
For Managers
Q. What is the aim for using aggressive sales promotion technique when better advertising campaign is
available?
Ho: There is no significant variation in the aim for using aggressive sales promotion technique when better
advertising campaign is available
Ha: There is a significant variation in the aim for using aggressive sales promotion technique when better
advertising campaign is available
Objective
To increase sales in off-season
To identity and attract new customers
To increase sales of slow moving products
To neutralize competition effect
All the above
Total
Observed O
2
6
1
4
12
25
Expected E
5.0
5.0
5.0
5.0
5.0
Residual
-3.0
1.0
-4.0
-1.0
7.0
Test Statistics: Q. what is the aim for using aggressive sales promotion technique when better advertising
campaign is available?
Chi-Square
dof
Asymp. Sig.
15.200a
4
.004
Interpretation: The table above, Test Statistics, provides the result of the chi-square test: the X² (4) = 15.200,
p < 0.05, Therefore, null hypothesis is rejected as Significance is less than 5%.
Conclusion: there is a significant variation in the aim for using aggressive sales promotion technique when
better advertising campaign is available.
Q. Which one is most vital under sales promotion techniques in rising sales?
Ho: There is no significant variation among the parties under sales promotion techniques in rising sales
Ha: There is significant variation among the parties under sales promotion techniques in rising sales
Important party
Customers
Dealers
Observed O
6
3
Expected E
6.3
6.3
Residual
-.3
-3.3
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Salesmen
All the above
Total
5
11
25
6.3
6.3
-1.3
4.8
Test Statistics: Q. which one is most vital under sales promotion techniques in rising sales??
Chi-Square
dof
Asymp. Sig.
5.560
3
.135
Interpretation: The table above, Test Statistics, provides the actual result of the chi-square test: the X² (3) =
5.560, p > 0.05, Therefore, null hypothesis is accepted.
Conclusion: there is no significant variation among the parties under sales promotion techniques in rising sales.
More or less all the parties are equally important under sales promotion techniques in rising sales.
Conclusively: From the analysis of the data collected and interpretation of results through chi- square, it is
concluded that there is no significant variation among sales promotion techniques of the particular Industry.
Most of the companies are using analogous strategies. So there is no significant effect of sales promotion tools
on sales volume, profitability, no of customers and overall performance of particular Industry. Therefore, the
null hypotheses have been accepted.
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS:
For Customers: As for as promotion technique is concerned a maximum of 35% of the respondents attract
sales promotions and a minimum of 16.7% of the respondents attract publicity by words of mouth promotion
technique. The perception about the technique of sales promotions which one use to push sales is found among
the respondents, 31.7% of the respondents consider that price off is one of the most effective method of sales
promotion technique that Industry use to push sales and the least 6.2% of the respondents reflect that others
technique (coupons, Samples and lucky draws) of sales promotion that Industry use to push sales.
The respondents are very cautious in their purchase decision through analysis determine that 41.7% of the
respondents believe that price off or discount is more effective to encourage customers to purchase, 23.7% of
the respondents state that premium & bonus packs is the sales promotion technique that make them to purchase
products, 20.4% of the respondents consider it is extra quantity, 7.9% of the respondents think it is contests
and remain 6.3% of the respondents say others technique. Proper care should be taken while planning and
implementation of sales promotions techniques. Indian domestic companies put more efforts to offering sales
promotions benefits. Lack of appropriate execution of sales promotion tools are not properly reaching to all
customers always. The company manager must implement the scheme sturdily and re-evaluate of the scheme
is to be carried out periodically.
For Dealers: It is denoted that the majority 71.8% of the respondents are satisfied with the Industry supplying
CPG/FMCG products and gives sales promotion allowances, 21.5% of the respondents are not satisfied and
remain 6.7% of the respondents cannot say. The majority 33.3% of respondents believe that discount is one of
the sales promotion techniques used by the Industry. Minority 4% of respondents state that it is cooperative
advertisement, this sales promotion technique which is effective and most of the company use. The majority
31.9% of the respondents accept as true that they always get various types of allowances and minority .6.7%
of the respondents say they never find out various types of allowances. The respondents opined about the
supplier support Retailer / Wholesaler in joint or cooperative advertisement for enhancement of sales are 33.3%
of the respondents consider they sometime support, 23% of the respondents’ state that they often support,
18.5% of the respondents say rarely, 15.6% of the respondents say always and remain the least 9.6% of the
respondents say they never support dealers in joint or cooperative advertisement for enhancement of sales.
Dealers should be informed regarding contests and their participation should be improved. The sales
promotions techniques for dealers provided are discounts, dealers, gifts, trade - discounts and sales contests.
The company can get willing cooperation of dealers in sales promotion. While planning and implementation
of sales promotion techniques more care is needed so effectiveness can be improved.
For Managers:
It is observed that the higher majority 92% of the respondents believe that sales promotion technique is the
better way to increase the sales quantity and minority 4% of the respondents cannot say anything. Majority
68% of the respondents consider that all the reasons such as due to increasing competition, standardizes
products need non-price factor support, due to number of customers increase and caused by easy to measure
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effects are the motive for using more sales promotion techniques in the company. The majority 52% of the
respondents consider that sometime immediate and some time delayed are the effect of sales promotion
techniques on sales, But 44% of the respondents believe that the impact is immediate of sales promotion
techniques on sales and remain 4% of the respondents say that impact is delayed. It is disclosed that over
whelming majority of managers agreed that Liable for implement strategic plan of sales promotion techniques
in the company are Top management, Head of sales department and Territory managers. Sales mangers of the
company should pay proper attention to sales promotion techniques for customers, salesmen and dealers.
Majority of the Managers consider that sales promotion technique is the better way to increase the sales
quantity. Majority of the managers consider that all the parties such as customers, sales force and dealers are
most vital under sales promotion techniques in rising sales. Indian companies’ sales promotion strategy impact
is tremendous sometimes but sometimes delayed. Sales promotion strategy formulation the impact should be
kept in mind for successful efforts and unusual care must be taken by the sales manages on forecast dealers
relationship, motivational aspects of parties involves, and implementation.
LIMITATIONS OF THE STUDY
1. This study is restricted to Delhi and NCR and result may vary if conducted in other regions.
2. The information provided by the respondents is purely on their memory only. The quality and
reliability of the data collected are depending upon the memory recall of the respondents.
3. Time and money constraints impose major limitation to the study.
4. This study is limited to sales promotion schemes of CPG product only and result may differ if study
is conducted for non CPG product.
REFERENCES:
[1] Alireza Karbasivar and Hasti Yarahmadi (2011) Evaluating Effective Factors on Consumer Impulse Buying
Behavior, Asian Journal of Business Management Studies 2 (4): 174-181.
[2] Alvarez, B. A., and Casielles, R. V. (2005). Consumer evaluation of sales promotion: the effect on brand choice.
European Journal of Marketing, 39, 54- 70.
[3] Blattberg, C., R., & Neslin, S. A. (1990). Sales Promotion, Concepts, Methods and Strategies. Englewood Cliffs,
New Jersey: Prentice Hall.
[4] Corinna Hawkes, (2009) ‘Sales promotions and food consumption’ Nutrition Reviews, Volume 67, Issue 6,
pages 333–342.
[5] Kotler Phillip, “Marketing Management : Analysis, Planning, Implementation and Control,” 9 th ed., Prentice
Hall of India, 1997.
[6] Kothari C.R, Research Methodology: Methods & Techniques, 2nd Edition, 2009,New age, New Delhi.
[7] Lawnivzak, R., 2007. Public relations role in a global competition to sell: alternative political and socioeconomic
models of market economy, Public Relations Review, 33: 377-388.
[8] Malhotra Naresh K, Marketing Research: Applied Orientation, 5th Edition, 2007,Pearson Pub, New Delhi.
[9] Ndubisi, N.O., 2005. Effectiveness of sales promotional tools in Malaysia: the case of low involvement products,
Allied Academies International Conference, 10(2): 41-47.
[10] Nargundakar, Rajendra, Marketing Research: Text and Cases, 2007, TMH, New Delhi.
[11] Strang Roger, “Sales Promotion fast growth faculty management,” Harvard Business Review, 1976.
[12] Paul Shrivastava, 1995. Environmental technologies and competitive advantage, Strategic Management Journal,
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[13] Zhang W., 2008. Effects of promotion in the three media on book sale, RES Publications, pp: 24-27.
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[15] Pauwels, K., J. Silva-Risso, S. Sriniovasan and D.M. Hanssen, 2004. New products, sales promotions and firm
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AN ANALYTICAL STUDY OF CRM PRACTICES IN PUBLIC AND
PRIVATE SECTOR BANKS IN THE STATE OF UTTAR PRADESH
ABSTRACT
Mr. Love kumar Patwa1
Mr. Kush kr. Patwa 2
Present research is an initial attempt at the banking sector level highlighting the relative Customer
Relationship Management (CRM) performance & evaluates its collision on customer retention between
the Private and Public Banks of Uttar Pradesh. CRM means, edifice an interdependent relationship with
the customer in whom each relies on the other for business solutions and successes. It came into the
power when banking industry were getting more, more competitive and shield its market share and boost
growth. From the Bank’s point of view, it is the management process or approach of acquiring, retaining
and growing. SPSS Package was applied to compile and analyze the data. Major Factors taken from
various researches to analysis their importance and Stratified random sampling technique used for
administrating the questionnaire. Results bring out that the Private Banks have been able to implement
the CRM practices more effectively. However, a micro analysis reveals that the Public Banks have highest
scores in terms of reliability and assurance. The analysis of the results suggests that the banks (whether
Public or Private) are equally affected by the kind of CRM initiatives they undertake.
KEYWORDS: CRM, Private (AXIS & ING VYSYA) & Public (UBI & OBC) Sector Banks, Stratified
random sampling technique, CRM factors, Chi-Square test & p-value
CRM: THE CONCEPT
Customer Relationship Management (CRM) is the establishment, development, maintenance and optimization
of long-term mutually valuable relationships between consumers and the organizations. Successful customer
relationship management focuses on understanding the needs and desires of the customers and is achieved by
placing these needs at the heart of the business by integrating them with the organization's strategy, people,
technology and business processes.
CRM is a comprehensive approach for creating, maintaining and expanding customer relationship It provides
seamless co-ordination between customer service, marketing, information technology and other customer
related functions. It integrates people, process and technology to maximize relationships with all the customers.
It does not aim to build closer relationship with all customers, but it recommends that organizations take
initiative to identify the most valuable customers by looking for their life time value.
CRM means building an interdependent relationship with the customer in whom each relies on the other for
business solutions and successes. From the Bank’s point of view, it is the management process or approach of
acquiring, retaining and growing.
Need of CRM in the Banking Industry
A Relationship-based Marketing approach has the following benefits
 Over time, retail bank customers tend to increase their holding of the other products from across the
range of financial products / services available.
 Long-term customers are more likely to become a referral source.
 The longer a relationship continues; the better a bank can understand the customer and his/her needs
& preferences, and so greater the opportunity to tailor products and services and cross-sell the product
/ service range.
With increased number of banks, products and services and practically nil switching costs, customers are easily
switching banks whenever they find better services and products. Banks are finding it tough to get new
customers, and more importantly, retain existing customers.
1
2
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Banking and CRM
Banks have traditionally viewed themselves as exceedingly 'Customer Centric' offering what they believe to
be highly personalized services to the High Net-Worth Customers (HNW). However, changes in the customer
behavior and accumulation of wealth are resulting in the needs of HNW customers becoming more diverse
and complex in terms of the sorts of products they want, the channels through which they want to access them
and the associated range of advice. The wealthier the customers, the more demanding they are - and the clients
expect more and more from their banks. Competition for "Supremely elite" is increasing.
[1] To understand and evaluate the effectiveness of CRM in banking sector.
[2] To compare the structure, objectives and working styles between various Public Banks and Privet
Banks.
[3] To identify the level of computerization and level of automation by banks to provide better services
to customers.
[4] To assess the customer satisfaction level.
[5] To study the various barriers of effective CRM.
REVIEW OF LITERATURES
“A customer is the most important visitor on our premises. He is not depending on us. We are depending on
him. He is not an interruption on our work. He is the purpose of it. He is not an outsider on our business. He
is a part of it. We are not doing him a favor by serving him. He is doing us a favour by giving us an opportunity
to do so.”
- Mahatma Gandhi –
Jatinder Kaur Sidhu (1994) studied the importance of balanced regional growth for economic development.
She studied the growth & disparities in banking development in India.
Hiroshi F. (1997) In his study “Electronic commerce for new management and information system
infrastructure”, he had given stress on electronic information provided to customer in various banking sectors
to make the system more efficient to fulfill the needs of customer using banking services and help in CRM.
Berker and Nasr (1998), Mulhern (1999), and Jain and Singh (2002) found out that managers expect
customer relationship relationships to be enduring, he anticipated that the seller will capture as much of the
buyer's business as possible for as long a time as possible. This research on CLV suggests that many companies
are using these concepts to determine those customers to select for their CRM programs and how much to
spend on these programs for each customer.
Campbell (2003); Rowley (2004); Minna and Aino (2005) They studied that an analytical CRM system
requires Knowledge Management (KM) applications in CRM systems to improve the strategic efficiency of
CRM through acquiring and sharing knowledge about customers. The importance of interface between KM
and CRM systems in banks has been highlighted. They found out the criticality of this interface to understand
and operationally this interface in parallel contexts of systems, people and processes. The same author further
suggests that customer data may be used as a platform for CRM systems for communicating, creating loyalty,
customer service, trust cultivation and relationship maintenance in banks.
Buttle (2009) proposed a CRM value chain model. The idea of this model was taken from Michael Porter’s
value chain model (Porter, 1985). It consists of five primary stages and four supporting conditions leading
towards the end goal of enhanced customer profitability. The primary stages of model are: customer portfolio
analysis, customer intimacy, network development, value proposition development, and managing the
customer life cycle.
Researchers have evolved satisfaction indices (SI) to suit various requirements but almost all have agreed on
communication being a central aspect to any customer relationship strategy Ali and Ahmad, (2010). Though
many model have been used to explain the relationship between a customer and a service provider.
GAPS IN THE EXISTING LITERATURES: The existing studies have multiple points of views but
none of them have offered a integral and specific study in CRM. Thus a need is felt to initiate research in this
direction so as to establish relationship between different parameters that will reflect the effectiveness
efficiency of CRM. The present work is an initial attempt at the banking sector level.
METHODOLOGY AND MODEL BUILDING
The study is based on primary data collection. The data has been collected by actually visiting the various
banks and meeting the officers. Sample Area: The sample had been collected from the 04 Banks situated in
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Uttar Pradesh, We have considered two Public (UBI & OBC) and two Private (AXIS & ING VYSYA) Sector
banks for this study. Sample Size: The sample size of study 328 respondents, we have distributed 328
questionnaires among the managers and customers of Four banks. Sampling technique: Stratified random
sampling technique used for present study for administrating the questionnaire.
Data Analysis Techniques: To compile and analyze the data collected from the field survey SPSS Package
was applied. Frequency distributions were studied to gather the first hand information on various variables.
Further the data was analyzed for
a) Major Factors were taken from various researches & put to respondents to analysis their importance.
b) Mean and other related statistics was analyzed on various responses from banks.
c) Frequency distribution was calculated of various responses.
d) Chi-Square & p-value was calculated through SPSS software to understand the significance.
HYPOTHESIS
1. Ho- There is no significant impact of different parameters on the efficiency of CRM.
2. Ho- There is no significant difference between performance of private & public sector banks.
3. Ho- There is no significant impact on customer satisfaction.
In these analysis (From UBI & OBC BANK = 69 respondents and from AXIS & ING VYSYA BANK =
68 respondent) Total respondent from Staff = 69+68 = 137 respondents has given the response from Top
Management, Middle Management & Lower Management.
Various rating has been marked from 1 to 5 for questions to conclude facts:Rating – (1) Highly dissatisfied or the parameter is not necessary
Rating – (2) Moderately dissatisfied or impact of this parameter is minimal.
Rating – (3) Neutral or impact of this parameter is marginal.
Rating – (4) Moderately satisfied or impact of this parameter is significant
Rating – (5) Highly satisfied or impact of this parameter is critical
The lowest value and highest value of all observations (range).The lowest value used in the analysis 1 and
the highest value is 5.
Analyses have been done to understand the basic statistical tools and results Table Shows the results of various
questions asked to Staff of Public and Private Banks. Sample size used is the actual responses received from
various respondents
Question
SPEEDY SERVICE
SPEED OF ATM AND RELATED
SERVICES
STAFF COOPRATION AND
BEHAVIOUR
LOAN RELATED FACILITIES
CLEAR TERMS & CONDITIONS
PROBLEM SOLVING
ATTITUDE/SPECIFIC STAFF
VARIETY OF SERVICE
BETTER RATE OF INTEREST
ONLINE SERVICE,PAYMENT
AND OTHER FACILITY
HOME SERVICE LIKE
DELIVERY OF CASH
FREQUENCY OF RESPONSE
Banks
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Table no. 1
1
0
0
4
11
0
0
0
13
10
5
0
0
10
5
0
0
0
0
0
0
0
2
3
4
5
Count
0
0
29
27
0
0
24
32
35
39
0
0
32
33
0
0
12
18
27
16
21
7
3
33
28
7
3
39
20
21
24
7
0
26
27
6
2
27
30
33
38
34
36
32
3
2
39
32
6
3
3
0
35
29
1
3
39
21
25
18
7
14
14
26
33
0
0
23
33
0
0
0
0
27
39
0
0
24
45
5
2
2
0
0
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
Chi
Square
pvalue
2.659
.265
3.941
.268
4.069
.131
21.255
.000
5.076
.166
9.738
.008
2.694
.441
13.785
.001
3.776
.287
7.492
.058
.600
.741
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Vol. 05
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NEW PRODUCT AND
SERVICES
RELATIONSHIP WITH
CUSTOMER
CUSTOMER PROSPECTING
EMPOWERMENT TO
CUSTOMER
INTERACTIVE MANAGEMENT
PARTNERSHIP
PERSONALZATION
PRESENCE OF INTERNET
FACILITY WITHOUT RISK
UNDERSTANDING CUSTOMER
EXPECTATION
INTERACTING ON INTERNET
24X7 TELEPHONIC SUPPORT
DATA PROTECTION AND
PRIVACY OF INDIVIDUAL
BETTER COMPETITOR
OFFERINGS
WELL TRAINED AND
MATURES STAFF TO HANDLE
ERRORS
QUALITY OF SERVICE AND
STAFF
PRESENCE GEOGRAPHICALLY
Private
0
18
38
12
0
68
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
Public
Private
0
0
6
3
0
18
0
0
13
13
0
0
1
15
12
3
9
9
4
0
0
3
10
21
0
3
0
0
19
33
28
30
0
0
42
35
0
0
26
31
36
35
39
36
15
9
1
3
26
18
7
16
0
3
33
23
38
20
8
0
14
20
4
6
39
20
21
30
21
23
29
25
24
20
15
9
29
29
24
24
9
9
3
0
36
30
0
0
44
33
3
2
0
0
0
0
21
32
30
24
9
9
33
18
45
41
2
0
0
0
25
38
0
0
21
29
0
0
0
0
0
0
0
2
14
18
9
11
0
2
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
69
68
Public
Private
Public
Private
4
6
3
6
13
18
9
15
29
23
28
24
23
21
29
21
0
0
0
2
69
68
69
68
3.179
.204
8.548
.073
26.649
.000
11.221
.004
1.688
.430
3.244
.197
19.001
.000
6.995
.030
.204
.903
10.073
.039
5.523
.238
7.051
.133
12.927
.012
1.982
.576
6.081
9
.193
Valid
Missing
Mean
Std. Error of
Mean
Median
Mode
Std. Deviation
Variance
Skewness
Std. Error of
Skewness
Range
Minimum
Maximum
To understand the response of staff on each question Valid Response, Mean, Std. Error, Median, Std. Deviation,
and Variance is calculated and shown in the Table2.
Statistics
N
137
137
137
137
0
0
0
0
4.4
2.4
4.3
2.5
.05
.06
.05
.07
4
2
4
2
.62
.73
.61
.76
.38
.54
.37
.58
-.40
-.25
-.33
-.09
.21
.21
.21
.21
2
3
2
3
137
0 2.3
.06
2 2 .68
.46
.05
.21
3 1 4
137
137
137
0 4.4
0 2.3
0 4.5
.05
.06
.05
4 5 .59
2 2 .71
5 5 .61
.35
.50
.37
-.48
-.09
-.59
.21
.21
.21
2 3 5
3 1 4
2 3 5
137
137
137
0 3.2
0 2.9
0 2.9
.07
.06
.06
3 3 .84
3 3 .72
3 3 .64
.70
.51
.47
.14
.44
.12
.21
.21
.21
3 2 5
3 2 5
2 2 4
Questions asked
SPEEDY SERVICE
ATM SPEED & RELATED SERVICES
STAFF COOPRATION AND BEHAVIOUR
LOAN FACILITIES WITH CLEAR TERMS
AND CONDITIONS
PROBLEM SOLVING ATTITUDE/SPECIFIC
STAFF
VARIETY OF SERVICE
BETTER RATE OF INTEREST
ONLINE SERVICE,PAYMENT AND OTHER
FACILITY
HOME SERVICE LIKE DELIVERY OF CASH
FREQUENCY OF RESPONSE
NEW PRODUCT AND SERVICES
4
3
4
3
3
1
3
1
5
4
5
4
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RELATIONSHIP WITH CUSTOMER
CUSTOMER PROSPECTING
EMPOWERMENT TO CUSTOMER
INTERACTIVE MANAGEMENT
PARTNERSHIP
PERSONALZATION
PRESENCE OF INTERNET FACILITY
WITHOUT RISK
UNDERSTANDING CUSTOMER
EXPECTATION
INTERACTING ON INTERNET
24X7 TELEPHONIC SUPPORT
DATA PROTECTION AND PRIVACY OF
INDIVIDUAL DETAILS
BETTER COMPETITOR OFFERINGS
WELL TRAINED AND MATURES STAFF TO
HANDLE ERRORS
QUALITY OF SERVICE AND STAFF
PRESENCE GEOGRAPHICALLY
137
137
137
137
137
137
137
0
0
0
0
0
0
0
4.6
2.7
2.3
4.4
2.1
4.3
2.4
.05
.07
.06
.05
.06
.05
.06
5
3
2
4
2
4
2
5
3
2
4
2
4
3
.53
.85
.73
.60
.66
.6
.74
.29
.72
.53
.36
.44
.36
.55
-.88
.22
-.27
-.44
-.06
-.20
-.21
.21
.21
.21
.21
.21
.21
.21
2
4
3
2
2
2
3
3
1
1
3
1
3
1
5
5
4
5
3
5
4
137
0 2.3
.06
2 2 .65
.42
-.31
.21
2 1 3
137
137
137
0 2.2
0 3.2
0 3.8
.06
.07
.08
2 2 .65
3 3 .84
4 4 .91
.42
.71
.83
-.21
-.51
-.51
.21
.21
.21
2 1 3
4 1 5
4 1 5
137
137
0 2.7
0 3.2
.12
.07
2 2 1.4
3 3 .81
1.8
.66
.46
-.45
.21
.21
4 1 5
4 1 5
137
137
0 3
0 3.1
.08
.08
3 3 .92
3 3 .93
.84
.86
-.48
-.57
.21
.21
3 1 4
4 1 5
Important Factors Analyzed
During the research various factors (26) extracted from various existing researchers and articles related to
CRM was summarized and put to respondents to rate each Factor satisfaction. After having responses on 26
factors it was analyzed that 11 factors are more significant and they play important role in Banking
Sector. For each factor frequency response is taken from both Public and Private Bank respondents. There Chi
Square and p value is calculated to understand the significant factors. Below table show the details.
1. LOAN AND RELATED FACILITIES (CLEAR TERMS AND CONDITIONS)
Value
df
Asymp. Sig. (2-sided)
(Chi-Square Tests)_
Pearson Chi-Square
21.255a
3
Likelihood Ratio
26.410
3
Linear-by-Linear Association
17.906
1
N of Valid Cases
137
a. 2 cells (25.0%) have expected count less than 5. The minimum expected count is 4.47.
.000
.000
.000
Interpretation: It Public Bank only 39 of respondents are neutral where as in case of Private Banks it is
20. Chi Value and p value shows that this factor is significant and need to be focused by Private Banks.
Though it is easy to get loan in Private Banks but still respondent feel that Public banks terms and conditions
are much clear and in case of Private banks respondent feel that terms and conditions changes fast with subject
to market conditions.
2. VARIETY OF SERVICE
Value
df
(Chi-Square Tests)_
Pearson Chi-Square
9.738a
2
.008
Likelihood Ratio
12.454
2
.002
7.876
1
.005
N of Valid Cases
137
a. 2 cells (33.3%) have expected count less than 5. The min. expected count is 3.47.
Interpretation: Response from various respondents indicates that Bank services play important role.
Comparing all Banks respondents are highly satisfied in Public Bank which is 27 & in Private Banks it is
39. After understanding the Chi Value 9.738 and p value .008 it shows that this factor is significant and need
to be more focused by Public Banks.
3. ONLINE SERVICE,PAYMENT AND OTHER FACILITY
(Chi-Square Tests)_
Pearson Chi-Square
Value
df
13.785a
2
.001
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Likelihood Ratio
14.064
2
12.897
1
N of Valid Cases
137
.001
.000
After calculating and understanding the Chi Value that is 13.785a and p value .001 it shows that this factor
is significant and need to be focused by Public Banks because the response from various respondents indicates
that Bank in Public Bank only 24 of respondents are Highly Satisfied where as in case of Private Banks it
is 45.
4. FREQUENCY OF RESPONSE
Value
df
(Chi-Square Tests)_
Pearson Chi-Square
7.492a
3
Likelihood Ratio
8.342
3
2.742
1
N of Valid Cases
137
a. 2 cells (25.0%) have expected count less than 5. The minimum expected count is .99.
.058
.039
.098
Interpretation: It is observed that in Public Bank customer 33 of respondents are neutral & in case of
Private Banks it is 38. While Chi Value that is 7.492 and p value .058. It shows that this factor is significant
and need to be focused by both Public & Private banks.
5. CUSTOMER PROSPECTING
Value
Df Asymp. Sig. (2-sided)
(Chi-Square Tests)_
a
Pearson Chi-Square
8.548
4
.073
Likelihood Ratio
9.396
4
.052
1.558
1
.212
N of Valid Cases
137
Interpretation: Comparing response from various respondents indicates that customers from both banks are
neutral in Public Bank 33 and in case of Private Banks it is 23. Calculating and understanding the Chi Value
and p value shows that this factor is significant and need to be focused by both banks.
6. EMPOWERMENT TO CUSTOMER
Value
df
(Chi-Square Tests)_
Pearson Chi-Square
26.649a
3
Likelihood Ratio
34.853
3
23.752
1
N of Valid Cases
137
.000
.000
.000
Interpretation: It is observed that in Public Bank customer 38 of respondents are neutral where as in case
of Private Banks it is 20. While Chi Value that is 26.649 and p value 0.000. Hence this factor is significant
and need to be focused by both Public & Private banks.
7. INTERACTIVE MANAGEMENT
Value
Df
(Chi-Square Tests)_
a
Pearson Chi-Square
11.221
2
.004
Likelihood Ratio
14.331
2
.001
9.295
1
.002
N of Valid Cases
137
Interpretation: Bank initiative with customer plays very important role. In Public Bank only 25 of
respondents are very Highly Satisfied where as in case of Private Banks it is 38. Calculating and
understanding the Chi Value and p value it shows that this factors is significant and need to be focused by
Public Banks
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8. PRESENCE OF INTERNET FACILITY WITHOUT RISK
Value
df
(Chi-Square Tests)_
a
Pearson Chi-Square
19.001
3
.000
Likelihood Ratio
21.562
3
.000
15.966
1
.000
N of Valid Cases
137
Interpretation: Both sector’s Bank provide this facility but risk factors play still an important concern. In
Public Bank 39 are neutral & in Private Banks it is 20. Chi Value and p value shows that this factor is
significant. Details show that respondent from Private Banks feel higher risk while using internet facility as
compared to Public bank customers.
9. UNDERSTANDING CUSTOMER EXPECTATION
Value
df
(Chi-Square Tests)_
Pearson Chi-Square
6.995a
2
.030
Likelihood Ratio
7.386
2
.025
5.856
1
.016
N of Valid Cases
137
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.45.
Interpretation: Comparing response of various respondents indicates that customers are moderately
dissatisfied in Public Bank 36 & in Private Banks it is 35. Calculating the Chi Value and p value shows
that this factor is significant and need to be focused by both banks.
10. 24X7 TELEPHONIC SUPPORT
Value
df
(Chi-Square Tests)_
Pearson Chi-Square
10.073a
4
.039
Likelihood Ratio
12.423
4
.014
8.767
1
.003
N of Valid Cases
137
Interpretation: Comparing response from various respondents indicates that customers from both banks are
moderately satisfied in Public Bank 21 & in case of Private Banks it is 32. Chi Value and p value shows
that this factor is significant and need to be focused by Public Banks.
11. WELL TRAINED AND MATURES STAFF TO HANDLE ERRORS
Value
df
(Chi-Square Tests)_
a
Pearson Chi-Square
12.927
4
.012
Likelihood Ratio
15.019
4
.005
7.425
1
.006
N of Valid Cases
137
Interpretation: In Public Bank 33 is moderately satisfied where as in case of Private Banks it is 18. Chi
Value and p value shows that this factor is significant and need to be focused by Private Banks. Even Private
banks have more young staff they are well trained but respondents feels that mature staff of Public Sector
Banks can handle errors or similar critical situations with their experience.
CUSTOMERS ANALYSIS
Generated by SPSS software a paired sample Correlation Analysis is applied for customer review. Final
response received in case of Public Sector Banks is N=93 and in case of Private sector Banks N=98 and
Total N=191. Three different Correlations were run, First for Public Sector, second for Private Sector and
third for Total. It was found that in three cases, response is significant or highly significant. Those cases have
been analyzed below:
Banks
UBI
No
14
Are you satisfied with the problem solving attitude of bank?
Yes
33
Total
47
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OBC
AXIS BANK
ING VYSYA BANK
Total
Interval by Interval
Ordinal by Ordinal
N of Valid Cases
Ordinal by Ordinal
N of Valid Cases
Ordinal by Ordinal
N of Valid Cases
4
11
4
33
42
42
41
158
Symmetric Measures (Public Banks)
Value
Asymp. Std. Approx. Tb
Errora
.267
.092
2.642
Pearson's R
Spearman Correlation
.267
.092
2.642
93
Symmetric Measures (Private Bank)
Value
Errora
.164
.093
1.631
Pearson's R
.164
.093
1.631
98
Symmetric Measures (Pub. & Pvt. Bank)
Value
Errora
.146
.072
2.024
Pearson's R
.144
.072
1.997
191
46
53
45
191
Approx. Sig.
.010c
.010c
Approx. Sig.
.106c
.106c
Approx. Sig.
.044c
.047c
Analyzing the details it is observed that these questions are positively correlated with each other. . In case
of Public Banks it is observed that Correlation is 0.267, Private Banks 0.164 & Total Correlation value is
0.146. When most of the respondents were asked about their satisfaction level it is observed they have mix
response and most of them have correlated the same with Problem solving attitude of the bank. It seems that
if banks will solve customer problem efficiently they will feel satisfied
Banks
UBI
OBC
AXIS BANK
ING VYSYA BANK
Total
Ordinal by Ordinal
N of Valid Cases
Ordinal by Ordinal
N of Valid Cases
Ordinal by Ordinal
N of Valid Cases
Will you refer other to this bank?
No
Yes
15
32
4
42
21
32
28
17
68
123
Value
Errora
.288
.091
2.868
Pearson's R
.288
.091
2.868
93
Value
Errora
-.225
.098
-2.265
Pearson's R
-.225
.098
-2.265
98
Value
Errora
-.276
.072
-3.950
Pearson's R
-.280
.073
-4.008
191
Total
47
46
53
45
191
Approx. Sig.
.005c
.005c
Approx. Sig.
.026c
.026c
Approx. Sig.
.000c
.000c
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Analyzing the details it is observed that in case of Public Banks Correlation is 0.288, in Private Banks it is 0.225 & Total Correlation value is -0.276. When the respondents were asked that you will again come in future
then customer’s response shows negative correlation of the same to give reference of banks to others.
Respondent due to convince of reach will again come to bank but is negative correlated to refer the same to
others.
Banks
Do you think this bank is better then other bank?
Yes
UBI
42
OBC
39
AXIS BANK
47
ING VYSYA BANK
39
Total
167
Value
Errora
-.068
.103
-.653
Pearson's R
Ordinal by Ordinal
-.068
.103
-.653
N of Valid Cases
93
Value
Errora
-.031
.101
-.300
Pearson's R
Ordinal by Ordinal
-.031
.101
-.300
N of Valid Cases
98
Value
Errora
-.013
.071
-.185
Pearson's R
Ordinal by Ordinal
-.013
.071
-.177
N of Valid Cases
191
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
No
5
7
6
6
24
Total
47
46
53
45
191
Approx. Sig.
.515c
.515c
Approx. Sig.
.765c
.765c
Approx. Sig.
.854c
.860c
Analyzing the details it is observed that these questions are negatively correlated with each other. In case of
Public Banks Correlation is -0.068, Private Banks it is -0.031. But when total respondents were taken Total
Correlation value is -0.013. It shows that against the problem solving attitude they still feel that problems can
be handled in much better and efficient way. They feel many other banks solve the problem in better way.
CONCLUSION AND SUGGESTION
The banks, both Public and Private, have transformed themselves into profit oriented business organizations
besides playing a developmental role in the economy. This new orientation has bound them to take a more
pragmatic approach for conducting the business. While analyzing the CRM Implementation in both the sectors,
it was found that the Private Sector Banks have been able to implement the CRM practices more effectively
when compared to their Public Sector counterparts. This indicates that strategically speaking, the Private
Sector Banks have been more innovative in understanding their customers and in building good relations with
them.
The analysis of the results received suggests that the banks (Public or Private) are equally affected by the kind
of CRM initiatives they undertake. The banks are now under tremendous pressure to retain the older customers
because of the competition in the Banking Sector. This would not only ensure better customer relations but
also loyalty among them, which is very critical and important in today’s competitive world. The banks can do
this by building a strong relationship with the customers. To meet the customer needs and to beat the
competition, they must deliver superior quality service. The key drivers to customer loyalty are:
 Efficient complaints resolution.
 Superior quality service.
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 Positive Staff Attitude.
 Integrity, Honesty and Reliability
No doubt CRM is here to take on the business world and essential to compete effectively in today’s market
place. A proper strategic alliance e between various partners in the process of implementing CRM should be
decided well ahead and once the concept is accepted it should be implemented in good faith and spirit so as to
derive customer delight.
LIMITATIONS OF RESEARCH
The present study has the following limitations:
1. The expectations of the customers in Uttar Pradesh may vary from those of the rest of India.
2. The secondary data information collected carries all the limitations inherent in such data.
3. Only four (public and private) banks were selected for compare the service quality.
REFERENCES
[1] Anand, S. (2008), Customer Relationship Management in Indian Banks, Journal of Professional Banker, Dec.
2008, pp. 66-70.
[2] Beckett-Camarata, E.J., Camarata, M.R., Barker, R.T. (1998), Integrating Internal and External Customer
Relationships through Relationship Management: A Strategic Response to a Changing Global Environment,
Journal of Business Research, 41, pp.71-81.
[3] Buttle, F. (2008), The CRM Value Chain, Marketing Business, (February), 52–55, 2001, Retrieved January 25,
2008, from www.wtcbrescia.it/upload/0-FButtleCRMvalchain.pdf
[4] Buttle, F. (2009), Customer Relationship Management: Concepts and Technologies, 2nd Edition, Elsevier Ltd.,
p. 20.
[5] Campbell, (2003); Rowley, (2004); Minna and Aino, (2005), from web page.
[6] Christopher, M., Payne, A. and Ballantyne, D. (1991), Relationship Marketing, Butterworth- Heinemann,
Oxford.
[7] Davids, M. (1999), How to Avoid the 10 Biggest Mistakes in CRM, Journal of Business Strategy, Nov-Dec
1999, pp. 22-26.
[8] Hiroshi, F. Hiroshi, F. 1997. 'Electronic Commerce for new management and information system
infrastructure', Electronics Information and Planning, December; 25(3), pp. 151-154.
[9] Jagdish N Sheth, Atul parvatiyar and G Shainesh (2001) CRM, Tata McGraw-Hill, New Delhi.
[10] Jatinder Kaur, Sidhu “Growth and Disparities in Banking Development in India,” 1994 (A thesis submitted to
UBS, PU, Chandigarh).
[11] Kumar, V., Venkatesan, R. and Reinartz, W. (2006) ‘Knowing what to sell, when, and to whom’, Harvard
Business Review, Vol. 84, No. 3, pp.131–137.
[12] Liu, H-Y. (2007), Development of a Framework for Customer Relationship Management (CRM) in the
Banking Industry, International Journal of Management, 24(1)
[13] Mukerjee, K. (2007), Customer Relationship Management-A Strategic approach to marketing, Prentice Hall of
India.
[14] Pisharodi, R et al (2003), Relationship Strategy, Effectiveness and Responsiveness in Services Marketing,
Journal of Relationship Marketing, Vol. 2, No. 1, pp. 3-22.
[15] Rajgopalan, Dr. S.P. (2000), E- Banking –The Indian scenario, banking in the new millennium Issues
Challenges & Strategies, Section –1, p.1.
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COMPARATIVE STUDY OF E-BANKING SERVICES OFFERED BY
PUBLIC AND PRIVATE SECTOR BANKS IN INDIA
ABSTRACT
Dr. Preshni Shrivastava 1
Technology has made tremendous impact in banking. Internet banking system facilitates banking through
the medium of internet with specialized software and hardware. This study seeks to determine the study
of e-commerce in public and private sector banks in India and the extent to which it is being practiced
and accepted by Indian organizations and Indian consumers. The specific objectives of the study are: To study the practices followed in banking industry in implementing e-commerce
 To know the percentage of urban population using banking that has adopted e-commerce in their
day to day transaction.
 To know the reasons of acceptance as well as non acceptance of e-commerce.
 To identify the shortcomings as well as the constraints experienced by the banking in the
implementation of e-commerce.
The study is empirical in nature. The research was conducted in Delhi & its periphery. This micro study
has a macro implication. The findings of this study have brought to light facts which may guide
Government, banking industry, service providers in their policy formulation and operations. It is
expected that this study may help further research in the area and the scholars may find this study helpful
in their academic endeavor.
KEYWORDS: e-banking, private sector banks, public sector banks, e-commerce
INTRODUCTION
In the old economic order, the consumer was required to go to the bank, but the reverse happened with
liberalization. Now banks came to the doorstep of the consumer, understand consumers needs, and many a
times tailor-made banking solutions to suit to the customer. The banks now hired professionals not just from
economic background, but from Engineering and other multitude of scientific streams, in order to deeply
understand the unique requirements of both the retail consumers as well as large multinational corporations.
They went a step ahead, and felt that consumers need not come all the way to the bank for mundane and routine
tasks, and to this effect introduced Internet banking system.
Internet banking (IB) is the latest and most innovative service and is the new trend among the consumers. The
shift from the formal banking to e-banking has been a 'leap' change.
McMillan defined internet banking as a system that allows you to use the internet to communicate with your
bank, check your accounts and pay bills etc. In internet banking system the bank has a centralized database
that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any
service can be selected and further interaction is dictated by the nature of service. Internet banking provides
large number of services for making banking a pleasure for customers. This service reveals remarkable
developments in the banking sector. This not only makes operation more flexible but also ensures banking
services faster, easy, privacy and secure.
Some of the advanced services of Internet Banking
 Bank statements, with the possibility to import data in a personal finance program such as Quicken
or Microsoft money
 Account opening, account closures and balance enquiry.
 Electronic bill payment
 Deposits and withdrawal of money.
 Cheque collection and stop cheque payment
1
Asst.Professor; Institute of Marketing & Management, New Delhi
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







Funds transfer between a customer’s own checking and savings accounts, or to another customers
account.
Investment purchase or sale.
Loan applications and transactions, such as repayments.
Account aggregation to allow the customers to monitor all of their accounts in one place whether
they are with their main bank or with other institutions.
There are growing numbers of virtual banks that operate exclusively online. These online banks have
low costs compared to traditional banks and so they often offer higher interest rates.
Apply online for request for ATM/Debit card and De-block /Activate ATM/Debit Card.
Secure mailbox by writing to the concerned manager for resolving queries and changing profile, etc
Subscribe for mobile banking and mobile recharge
BRIEF REVIEW OF LITERATURE
In the Introduction part, elaborate attempts were made to describe broad concepts related to e-banking. The
survey of the related research literature presented in this part will provide enough background to understand
the issues on which the study was focused and clarify why the problem was considered for investigation.
An empirical study by Pew Internet & American Life Project (2002) was concerned with the number of people
banking online and their gender in addition to their age. The study found that men are somewhat more likely
to bank online than women. Also, younger and middle-aged Internet users are the most likely group to turn to
online banking. The highest category using online banking in the survey was people aged 30 to 49, the lowest
category is above 65 and the rest of them are in between.
M. Warren Hutchinson (2003), study deals with the strategies that the e-banking organizations have to
formulate to tackle the risks .The article includes the guidelines & analysis for important programs like
information security,authentication, legal and compliance issues & finally transaction monitoring & consumer
disclosure .
Hill (2004) conducted a study concerned with identifying the characteristics of online banking users. The
results of the study were, people who use such services are young, trendy and high earning
The study of Abhay Jain and B S hundai (2005, deals with the hurdles involved in mobile banking services
.The article attempts to trace out the barriers in mobile banking services .Various private bank customers are
interviewed & surveyed to draw a conclusion . The survey revealed that the barriers are access problems,
dissatisfaction & certain inabilities of service providers.
The article by J .Venkatesh and P .periswamy (2006), deals with the e-banking solution at international level.
The authors opine that the latest e-banking solutions should emphasize on the value, payments,
communications & network.
Curran M. James and Meuter, L .Matthew (2007), study discusses that electronic banking is offering its
customers with a wide range of services. Customers are able to interact with their banking accounts as well as
make financial transactions from virtually anywhere without time restrictions.
Qureshi. T. Zafar, M & Khan, (2008) states that rapid technology advancements have introduced major
changes in the worldwide economic and business atmosphere. Consumer acceptance of online banking
depends on various factors such as accessibility, user friendliness, technology awareness etc.
The paper of Gopala Krishna and C. Vidya(2009) focuses on redefining the legal issues & find solutions to
the issues within the existing legal framework in the context of internet banking in India. The authors discusses
the scope of internet banking, legal dimensions of internet transactions, contractual and jurisdictional issues
.The paper also highlights the security regime issues like access control, confidentiality and integration of data,
non–repudiation of transactions, and privacy issues . Further challenges in regulation of internet banking like
policy related to privacy, adaption of existing laws and integration of new laws to internet banking, resolving
the traditional notions of new place and new concept of cyberspace are also discussed. The authors stress on
the need for a well planned system of preventive, detective and corrective regulatory controls for security
aspects related to the integrity of network.
The paper A. J .Joshua, and Moli P .Koshi (April 2011) is an attempt to examine the various usage patterns by
customers of these technology enabled services provided. A survey research is conducted among the customers
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of some of the leading banks in India who are residing in the selected metro and urban banked centers in India.
The findings show that though ATMs have been widely adopted, the level of adoption of other electronic
banking means like internet 45 banking, telebanking and mobile banking despite their potential are yet to pick
in a big way. The usage patterns revealed through this study has several pointers to bank managements.
OBJECTIVES
The present study seeks to determine the comparative study of e-commerce in public and private sector banks
in India and the extent to which it is being practiced and accepted by Indian organizations and Indian
consumers.
The specific objectives of the study are: To study the practices followed in public & private sector banks in implementing e-commerce
 To know the percentage of urban population using banking that has adopted e-commerce in their day
to day transaction.
 To know the reasons of acceptance as well as non acceptance of e-commerce in public and private
sector banks.
 To identify the shortcomings as well as the constraints experienced by the banking industry in the
implementation of e-commerce.
HYPOTHESIS
HA1: That adoption of e-commerce even in Industries like Banking has not yet become popular.
HA2: That lack of awareness as well as lack of required mind set is a major reason for non adoption of ecommerce practices.
HA3: The Banking industry has not equipped them to deal with e-commerce transaction as efficiently,
ensuring complete reliability.
HA4: Customer problems related to e-commerce are not addressed in time by banking industry.
RESEARCH OVERVIEW
The present study of e-banking services offered by public & private sector banks are being empirical in nature
based on secondary as well as primary data. The data collected is qualitative which has appropriately been
segmented through proper sampling and later has been analyzed with the help of SPSS 16.0 by using
appropriate statistical techniques The secondary data and information has been collected from the reports,
journals, magazines, internet sources and records published as well as maintained in the sample units selected
for the study.
Population
The study focuses on public and private sector banks henceforth it is quite significant to obtain a fundamental
understanding of the population from which the samples have been selected and it necessitates an outlining of
basic population characteristics.
Indian Banking Industry
In the current scenario, every commercial bank in India is offering internet banking facilities. Recently the
banks are extending their presence in rural areas to lure more customers and show them the advantages of
internet banking by educating them for a wider acceptance of the new system. Commercial banks operating in
India have been broadly segmented into:
 Public Sector or Nationalized Banks
 Private Sector Banks
Public Sector bank:
A public sector bank is one where the government is holding majority shares in capital of the bank or one
which has been provided the nationalized bank status as per the Banking Regulations Act of 1949. Few of the
leading nationalized banks are:
 State bank of India
 Allahabad bank
 Bank of Baroda
 Oriental Bank of Commerce
 Union Bank
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 Punjab National Bank
 Bank of India
Amongst the leading nationalized banks operating in India State Bank of India is a key player of the industry.
Private Sector Banks
A private sector bank is one in which the majority shares are held by public. Few of the leading private sector
banks are:
 ICICI Bank
 HDFC Bank
 Kodak Bank
 Yes Bank
 Dhan Laxmi
Amongst the major private players ICICI Bank is the forerunner and the second largest bank of Indian Banking
Industry. Hence ICICI Bank is taken as a sample unit of present research study.
Sample Selection & Design
Sampling Technique
The method opted for taking sample in present study for analyzing the consumer acceptance of e-banking is
`Non-probability sampling’. It is also known as `Purposive Non-probability sampling/ Judgment sampling‟
and consumers are selected on basis of random sampling on the basis of data provided by the bank online
consumers. For collecting data from the industry, the respondents consist of employees dealing with online
services and branch managers. The sample of consumers both for banking & tourism has been derived from
random sampling considering literate consumers from salaried, self employed professionals and student and
other class.
Sample Size & Design
The research was conducted in Delhi & its periphery. For e-banking a sample of 3 branches of public sector
banks & 3 branches of private sector banks were selected .From this population of study 50 customers have
been selected from private sector banks and 50 customers from public sector Banks.
Data collection & collection Instrument
The data for the present study had to be collected from the industries and the consumers. Since the nature of
the study was purely empirical in nature, therefore data had to be collected from the branch managers and
employees dealing with online services in banks. For collection of primary data 2 sets of questionnaire were
prepared one for banks and other for consumers. Within these sectors individually one was prepared for the
organizations response and the other for customer’s response. A special provision was also made on the
internet for filling the questionnaire online .The respondents were requested to fill up the questionnaire as per
his/her convenience.
Statistical Tests used in Analysis
The data collected has been analyzed by using appropriate statistical and mathematical tools for the qualitative
analysis. For the said purpose the most reliable and authentic software i.e. SPSS 16.0 was used, in which the
variables were systematically defined and categorized as per their nature. To obtain the statistical accuracy of
results for qualitative data Chi- Square test has been used for determining the association or independence of
variables on the basis of various hypotheses as outlined previously. The test was conducted at 5% level of
significance and the degree of freedom was ascertained on the basis of the observation table.
HYPOTHESIS TESTING & ANALYSIS
HA1: That adoption of e-commerce even in Industries like Banking has not yet become popular.
Study findings show that customers are not regular users of online banking services. Proportion of users’ of
public sector is comparatively low as compared to private sector. Customers’ response shows that 53.3 % of
public sector customers are using e-banking services monthly.
Customers’ Response for online bill payment services offered by banks is highly espoused among the users in
contrast to other second – level services offered by banks.A significant proportion of respondents i.e. 30%
from public sector banks and 32% from private sector still away from these services provided by banks & feel
unsafe to pay online.
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Customer response of e-banking statement & balance enquiry services states that, 54% are users of this service
in public & 56% of private users are using this service, which shows that apart from convenience this service
is not adopted.
Customer’s response of EFT services of e-banking shows that 70% of public sector & 62% of private sector
are non-users of EFT Services.
Customer don’t feel secure of using instruments online as ,24% from public sector & 22% from private are
non –user of online booking The result of customer responses of e-Banking online debit card usage shows
that, 2% customers of public services providers & 2% private sector customers are non user of debit card
online. customer responses shows that, 72% from public & 62% from private are non user for online usage of
credit card.
HA2: That lack of awareness as well as lack of required mind set is a major reason for non adoption of ecommerce practices.
Researcher finds that bank’s response towards consumer awareness programs shows that 40% of public sector
banks are not providing this service & are lag in enhancing awareness and finds that private banks are putting
more effort for increasing awareness & in updating customers regularly through newspapers & through various
sources. Customer responses of e-banking shows that banks are providing self explanatory kits but information
contain in kits are not much self explanatory and does not serve the purpose.
Customer Response of live demonstration found that only 42% from both public & private are providing live
demonstrations for consumer awareness. From the study it has been found that only 28% private banks are
providing road shows & stall and only 8% of private sector banks are arranging symposiums
Customer’s perceive e-banking is for those who have Information techno knowledge & it is very tough .Banks
find it very tough to change their mind set specially above 50 age customers. Study finds that 60% public
sector bank consider block headed as most significant factor for creating hindrance to change customer focus.
The study discusses that even in Delhi and NCR region users encountered lack of knowledge problem. The
study points that not even above 50 years of users but below them even youngster student have shown their
concern. 80% of public sector banks and 20% of private sector banks consider lack of proper knowledge as
highly significant factor for non acceptance of e-banking.
HA3: The Banking Industry has not equipped them to deal with e-commerce transaction as efficiently,
ensuring complete reliability.
96% customers of public sector & private sector discusses that trust is most significant factor & needs to be
provided. Customers raises questions of responsible hands for possible failure & this study finds that banks
both public & private banks are not equipped well to deal with e-commerce transactions efficiently as hacking
& other cases makes the customers feel that banks & laws are not working effectively.
Security of customer’s data is the responsibility of banks and they should provide data security. Study shows
that 34% from public sector, responded that security is not adequate & 36% responses from private sector
users states that security features are not up to mark & government should take strict actions. Responses shows
that 36% of public sector banks & 38% customer of private feel that privacy is considered as highly significant
factor .
96% of public sector responses & 98% of private sector responses shows that user friendliness is highly
significant. Technology knowledge is required to avail all e-banking, though it’s not required to be technically
sound. From the study it has been found that 48% of public sector customer & 48% of private sector customer
consider technology as a significant factor.
HA4: Customer problems related to e-commerce are not addressed in time by Banking & Tourism Industries
both
This study finds that poor internet connectivity is a common problem faced by almost all the online
users.82.4% of salaried, 75% self employed responded for poor connectivity.60% customer responses of public
& 58% responses of private banks shown that problems of accessibility of internet are faced by customers
.Customer responses of e-banking shows that 36% from public sector users & 32% from private consumers
have shown their concern toward software & browser related problem.
Customers are not getting services on time from the service providers and are dissatisfied with the services
provided by the providers. The study find that 62% users of public sector responded that they have waited for
responses from the banks & 12% of public sector users responded that they have stopped using all the services.
CONCLUSION
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This comparative study of e-commerce in banking industry based on 50 customers each belonging to different
sectors has brought several facts responsible for slow growth of e-commerce in both the industries.
Though e-commerce has provided many benefits to the customers still adoption of e-commerce in banking is
not popular, even in Delhi NCR Region where people spend maximum time online and customers are skilled
& technically educated.
From the findings of the study it can be concluded that there is need for the business and commercial agencies
to make acceptance of paretic money popular. It is high time for banks operating in India to keep their ebanking infrastructure technologically and legally sound. The best option for banks seems to be to adopt
Techno Legal Measures that covers both Technical and Legal aspects of banking. Requisite technical support
should be provided to the banks, special attention should be paid to public sector banks.
Education of customers to provide proper knowledge is very much needed as Online banking becomes less
secure if users are careless, gullible or computer illiterate. With the globalization of business and services, our
country cannot lag behind in niche areas of Internet banking .In the new global era of multi currency, multilegal and multi regulatory systems, with the freedom of e-commerce, banks have to operate like Multinational
Corporation to grow and survive by adopting full-fledged internet banking services.
An initiative has been taken by both the sectors but much more need to be done .People have started realizing
e-commerce value, in Delhi and NCR region, why go offline if possible online. Start up measures has been
taken by services providers to shift the focus of customers for online revolution. Customers and Service
providers should shake hands to overcome the constraints of e-commerce in banking Industry in India .In
future internet banking will become “need to have” than “nice to have service if efforts are well played by
service providers.
SUGGESTION
On the basis of the findings of the study following suggestions could be made or offered
 It has been found that Lack of proper knowledge is a constraint and computer illiteracy can only be
helped by educating and technical assistance.
 Public participation is essential for the growth of online banking. Public participation is facilitated by
various education & awareness programmes
 Banking professionals should organize various training programs in schools/colleges /corporate
offices. They should arrange workshop in weekends by moving various societies and malls.
 Banks should also introduce Degree or Diploma of online banking to the employees and to the
customers. They should also force older peoples to do this course. This course should be provided
online as well as offline.
 Banks also need to induce more and more computerized and networked bank branches in the semiurban and rural India.
 Recognition programs to be conducted for good performers. Excellence seal is granted to
organizations that have engaged in self-designed initiative directed toward preventing hacking;
provide data confidentiality, privacy, security of information
 Government should reward the efforts of companies in terms of tax relaxation or any other financial
benefit.
 The banks also need to convince customers that their motive is to provide them beneficial services
through internet banking rather than using it as their synergy for cost effective that allows them to
reduce staff members and branches
 Banks should adopt techno legal measures that cover both technical and legal aspects of banking.
Banks should strengthen ICT department by providing training to IT personnel and procuring required
hardware and software.
 Provide a platform from where the customers can access different accounts at one time. Increasing
usage of mobile phones is going to revolutionize the banking culture in near future. Banks should not
charge more from their customers for mobile activation and online banking activation.
 Familiarizing the customer to a new environment by demo version of software on bank's web site.
This should contain tour through the features which are to be included. It will enable users to give
suggestions for improvements, which can be incorporated in later versions wherever feasible.
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BIBLIOGRAPHY & REFERENCES
PRIMARY SOURCES
[1]
[2]
[3]
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[5]
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Acts & Rules
State Bank of India Act , 1955
Technology Development Board Act, 1995
Reserve Bank of India (Amendment and Miscellaneous Provisions) Act, 1953
Gramm-Leach-Bliley Act (privacy and security of customer data),
FACTA (Fair and Accurate Credit Transactions Actions Act) , 2003
The Right to Information Act, 2005
Computer Fraud and Abuse Act, 1994
RBI (Internet Banking in India) , Rules ,2001
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Upper Saddle River, NJ: Pearson-Prentice Hall.
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[1] Pew Internet & American Life Project (2002). Pew Internet project data memo. Retrieved April 26, 2004, from
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[2] M. Warren Hutchinson (2003) “A security risk management journal for e-commerce”, information Management &
computer security, 238-242
[3] Hill, K. (2004) Study: Demographic Vs Marketing CRM daily [online]
Available:http://www.crmdaily.newsfactor.com/storyfirst_Demographics_or_marketing_&story_id=23250&category=lylt[Accessed28April 2004
[4] Abhay jain and B S hundai (2005), “Barriers in mobile banking adoption in India”, ICFAI Journal ,pg 15
[5] J venkatesh and P periswamy (2006) , “Role of Banking in Emerging scenario”, ICFAI Journal ,pg 30-35
[6] Curran M.James and Meuter, L .Matthew (2007), “Encouraging existing customers to switch to self service technologies:
and put a little fun in their lives”, Journal of Marketing theory and practice, 15(4), 283-298
[7] Qureshi, T, Zafar, M & Khan, M., “Customer Acceptance of Online Banking in Developing Economies,” Journal of
Internet Banking and Commerce, vol. 13, no. 1. 2008
[8] Gopala Krishna and C Vidya, “Legal & Security Regime for Internet Banking in India-Issues & Regulations “, 2009
[9] A J Joshua and Moli P Koshi (April 2011), “usage pattern of electronic banking services by urban educated customers:
Glimpses from India”, JIBS, Vol 16, No.1 (http://www.arraydev.com/commerce /JIBS)
E-BIBLIOGRAPHY
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www.rbi.org.in
www.hdfcbank.com
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www.icicibank.com
www.yesbank.in
www.db.com
www.scribd.com
www.emerlandscribd.com
www.iupindia.org
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MICRO FINANCE AND FINANCIAL INCLUSION – CHALLENGES
AHEAD AND THEIR SOLUTIONS IN INDIAN PROSPECTIVE
ABSTRACT
Dr. Karambir Singh1
Micro finance is a financial service of small quantity provided by financial institutions to the poor. These
financial services may include savings, credit insurance, leasing, money transfer, equity transactions etc.
that is any type of financial service provided to customers to meet their normal financial needs, economic
opportunity and emergency. Whereas financial inclusion refers to inclusion of that large segment of
population who remained excluded from formal credit markets or does not have access to bank account.
Microfinance programs are intended to reach poor segments of society as they lack access to financial
services. It, therefore, holds greater promise to further the agenda of financial inclusion as it seeks to
reach out to the excluded category of population from the banking system. The segment which has
remained excluded may include marginal farmers, landless laborers, self employed, unorganized sector,
urban slum dwellers, migrants etc. The reason for exclusion of these segments from the financial sectors
may be due to poor infrastructure in remote, hilly and sparsely populated areas, lack of awareness,
illiteracy, low income level of these groups, higher transaction cost, ease of availability of informal credit
etc. There is a need to remove these blockades so as to further the agenda of financial inclusion.
The perception of lending institutions and intermediaries needs to be changed so as to bring efficiency
and urgency in the operations. These activities need to be carried as profitable venture with a social
mission rather than carrying out it purely as social or charitable activity.
MICROFINANCE
“Microfinance” is often defined as financial services for poor and low-income clients offered by different types
of service providers. In practice, the term is often used more narrowly to refer to loans and other services from
providers that identify themselves as “microfinance institutions” (MFIs). More broadly, microfinance refers
to a movement that envisions a world in which low-income households have permanent access to a range of
high quality and affordable financial services offered by a range of retail providers to finance incomeproducing activities, build assets, stabilize consumption, and protect against risks. These services include
savings, credit, insurance, remittances, and payments, and others.
Typical microfinance clients are poor and low-income people that do not have access to other formal financial
institutions. Microfinance clients are often self-employed, household-based entrepreneurs.
FINANCIAL INCLUSION
Rangarajan's committee on financial inclusion defines it as:"Financial inclusion may be defined as the process
of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups
such as weaker sections and low income groups at an affordable cost." The financial services include the entire
gamut - savings, loans, insurance, credit, payments etc.
It is widely recognized in economic literature that there are at least five different types of capital - physical
(roads, buildings, plant and machinery, infrastructure), natural (land, water, forests, livestock, weather), human
(nutrition, health, education, skills, competencies), social (kinship groups, associations, trust, norms,
institutions) and financial. One of the causes as well as consequences of poverty and backwardness is
inadequate access to all these forms of capital. Thus to look at financial inclusion in an isolated way is
problematic.
The financial system has to provide its function of transferring resources from surplus to deficit units but both
deficit and surplus units are those with low incomes, poor background etc. By providing these services, the
aim is to help them come out of poverty. So far, the focus has only been on delivering credit and has been quite
successful.
1
Asst. Professor, G.S.S.D.G.S. Khalsa College, Patiala (Punjab)
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FINANCIAL INCLUSION IN INDIA- POLICY PERSPECTIVE
Financial Inclusion has become a buzzword now but in India. RBI has made efforts to make commercial banks
open branches in rural areas. Priority sector lending was instituted to provide loans to small and medium
enterprises and agricultural sector. Further special banks were set up for rural areas like Rural Cooperative
Banks, Regional Rural Banks. The government also set up national level institutions like NABARD, SIDBI to
empower credit to rural areas and small and medium enterprises. Despite the rural policy-push, majority of the
population continues to be financially excluded.
CHALLENGES AHEAD AND THEIR SOLUTIONS
As the ambit of formal financial structure created by government is spreading rapidly to almost every corner
of the country, it is imperative to assume that financial inclusion will happen on its own. But it is not so. The
challenges and their probable solutions in Indian prospective can be discussed as follow:
Poor infrastructure - It has been found that financial services are used only by a section of the population.
There is demand for these services but it has not been provided. The excluded regions are rural, poor regions
and also those living in harsh climatic conditions where it is difficult to provide these financial services like
remote and hilly areas. The excluded population then has to rely on informal sector (moneylenders etc) for
availing finance that is usually at exorbitant rates. This leads to a vicious cycle of Poverty.
High cost: It has also been seen that poor living in urban areas don't utilize the financial services as they find
financial services are costly and thus are unaffordable. Hence, even if financial services are available, the high
costs deter the poor from accessing them.
Lack of awareness- As the targeted group of population consist of poor and less educated peoples who
lacks basic awareness regarding finance facilities, it is important for the authorities to simplify the procedure
to bring them into the fold of micro finance. E.g. In order to ensure that persons belonging to low income
group both in urban and rural areas do not face difficulty in opening the bank accounts due to the procedural
hassles, the KYC procedure for opening accounts has been simplified for those persons who intend to keep
balances in their accounts below the prescribed limit.
Used As A substitute of grant: Microfinance is particularly inappropriate for the destitute who may need
grants or other public resources to improve their economic situation. Grants are a more efficient way to transfer
resources to the destitute than are loans that many will not be unable to repay.
Used as a tool to address socio economic problems: Governments and development agencies often use
microfinance as a tool to address socio-economic problems such as relocation of refugees from civil strife,
generating employment among demilitarized soldiers, or assistance following a natural disaster. Microfinance
may or may not be able to respond to these situations effectively, and certainly not as a stand-alone
intervention. Implementing a successful microfinance program to address these types of situations depends
upon a number of factors, the most important of which is a client base capable of making regular repayments.
Political motives and sustainability of MFI’s: There are many highly successful government MFIs.
However, the vast majority government microfinance programs do a poor job of delivering retail credit. Such
programs are usually subject to political influence, high default, continuing drain on national treasuries, and
sometimes lending based more on the borrowers’ influence than their actual qualifications. Among
government programs reporting to international databases, only 1/8 of clients are being served sustainably.
There are structural dynamics that make it hard for governments to deliver good retail credit. Sound credit
administration requires screening out borrowers who are not likely to repay, charging interest rates high enough
to cover costs, and responding vigorously to late payments. These requirements usually run counter to the
practical incentives and imperatives of even the sincerest working politician.
It is important to remember that these incentive problems for government providers pertain more to credit than
to other services. For instance, good government savings banks are considerably easier to find than good
government retail loan programs.
Behavioral aspects: Research in behavioral economics has shown that many people are not comfortable
using formal financial services. The reasons are difficulty in understanding language, various documents and
conditions that come with financial services etc.
The above reasons show that it is not enough to assume that financial inclusion will happen on its own.
Therefore, the onus has come on to the policymakers to provide the same. Various step needs to be taken to
ensure the success of financial inclusion process. These steps may be:
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Using Information Technology: A few Pilot projects have been initiated to test how the technology can
be used to increase financial inclusion? Usha Thorat in her speech (June 19, 2007) pointed to a few measures:
 Smart cards for opening bank accounts with biometric identification.
 Link to mobile or hand held connectivity devices ensure that the transactions are recorded in the bank's
books on real time basis.
 Some State Governments are routing social security payments as also payments under the National
Rural Employment Guarantee Scheme through such smart cards. The same delivery channel can be
used to provide other financial services like low cost remittances and insurance.
 The use of IT also enables banks to handle the enormous increase in the volume of transactions for
millions of households for processing, credit scoring, credit record and follow up.
Easier Credit facilities: Banks have been asked to consider introducing General purpose Credit Card (GCC)
facility up to Rs. 25,000/- at their rural and semi urban branches. GCC is in the nature of revolving credit
entitling the holder to withdraw up to the limit sanctioned. The limit for the purpose can be set Based on
assessment of household cash flows; the limits are sanctioned without insistence on security or purpose. The
Interest rate on the facility is completely deregulated. A simplified mechanism for one-time settlement of
overdue loans up to Rs. 25,000/- has been suggested for adoption. Banks have been specifically advised that
borrowers with loans settled under the one time settlement scheme will be eligible to re-access the formal
financial system for fresh credit.
Simplify procedures: It has been also seen in experiments that people are reluctant to go to banks as they
are not clear of the directions, processes etc. Experts suggest that measures like giving people a map showing
the direction of the bank, asking for a time for appointment with the banker etc would lead more people to
come to the bank. Another important finding is that poor people avoid banks because of complicated forms,
procedures etc.
Simpler structures will lead to higher footfalls to the banks. Instead of just calling it a saving account separate
account could be opened called education account, vehicle account etc to enable a person to know the purpose
of the saving. These suggestions have come from research in developed economies. The emerging markets
need to set up their own behavioral economics research centers. These centers will need to conduct surveys,
conduct experiments etc to understand the behavioral nuances keeping people away from subscribing to
various financial services.
Usage of Regional language: The targeted group of population mainly consist of illiterate and less educated
people who may not be well versed in any foreign language, hence the Banks were required to provide all the
material related to opening accounts, disclosures etc in the regional languages so as to increase financial
inclusion.
Financial inclusion has to be in sync with Real-sector inclusion: Financial inclusion alone will not
be enough. The reforms in financial sector have taken center stage in Indian polity with substantial media
coverage to the same. The efforts have to be made to enable people to create real assets (plant, machinery, etc)
with the access to various financial services.
No Frill accounts: In November 2005, RBI asked banks to offer no-frills savings account which enables
excluded people to open a savings account. Normally, the savings account requires people to maintain a
minimum balance and most banks now even offer various facilities with the same. No-frills account requires
no (or negligible) balance and is without any other facilities leading to lower costs both for the bank and the
individual. The number of no-frills account has increased rapidly mainly in public sector banks over the time.
This is understandably so as majority of rural and sub-urban bank offices are in public sector banks.
Financial Education: RBI has taken number of measures to increase financial literacy in the country. It has
set up a multilingual website in 13 languages explaining about banking, money etc. It has started putting up
comic strips to explain various difficult subjects like importance of saving, RBI's functions etc. These comics
explain myriad and complex concepts in an entertaining manner.
Addressing Social issues: This is a problem, which has not got as much mention in literature as much as it
deserves. The rural may not be approaching banks for fear of being looted on the way. In the rural areas crimes
are common and one has to be careful with the money. So, may be financial inclusion will pick up if we address
law and order. Another problem is that research has shown that women are better savers than men and financial
inclusion is more likely to succeed with them in the fold. However, in rural areas women are not allowed to
move around and their movement is limited to areas around the house. These social issues need to be addressed
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to increase the reach of financial inclusion. The diverse demographic profile of India needs to be made a part
of the financial inclusion policies; otherwise it could be a hindrance
A broader approach than microcredit is needed: The focus of policies has been so far on two thingsone, to help people open more bank accounts and two, providing credit. The first makes people belong to the
formal financial system and also gives them an identity. The second helps them get some financial capital and
enables them to carry on some business activities to manage their livelihoods. However, this is too narrow a
view. The poor people also need to invest their savings into financial products that get them higher returns
than returns on savings account and fixed deposits. They also need other financial facilities like insurance,
pension plans etc to manage risks and old-age.
Meanwhile, few efforts have been made in the financial sector to provide financial products to the poor. UTI
Mutual Fund tied up with SEWA to provide pension plans to the latter's members. The Mutual Funds have
also been offering schemes that allow people to invest with just Rs 50/-. The schemes are called micro-SIP
(Systematic Investment Plan) where a person would be required to invest regularly and minimum withdrawals
are allowed. This will lead people to save regularly and withdraw judiciously. However, to get people to invest
in these funds is also risky and the poor person is always interested in two questions: One, how much returns
are guaranteed from this scheme? Two, is my money safe? If the funds can't give assured returns the poor has
another option in form of a fixed deposit and if the second condition isn't satisfied, he will not deploy his
money. Hence, to make a holistic financial inclusion, removing demand constraints (financial literacy etc) will
play a very important role.
Consumer Protection measures: Many countries are concerned about the impact of excessive interest
rates, abusive lending practices, and over-indebtedness on poor borrowers. Quite a few players in the industry
are now focusing on consumer protection issues. Typical consumer protection measures include disclosure
requirements, rules and prohibitions related to lending practices, mechanisms for handling complaints or
disputes, and consumer education.
Perception of lending institution: Most MFIs started as not-for-profit organizations like NGOs (nongovernmental organizations), credit unions and other financial cooperatives, and state-owned development and
postal savings banks. An increasing number of MFIs are now organized as for-profit entities, often because it
is a requirement to obtaining a license from banking authorities to offer savings services. For-profit MFIs may
be organized as non-bank financial institutions (NBFIs), commercial banks that specialize in microfinance, or
microfinance departments of full-service banks. Some MFIs provide non-financial products, such as business
development or health services. Commercial and government-owned banks that offer microfinance services
are frequently referred to as MFIs, even though only a portion of their assets may be committed to financial
services to the poor.
Regulation of Microfinance Institutions: Collection of small savings of poor people who do not have
access to a bank account is one major challenge in promoting financial inclusion. Micro Finance Institutions
can be allowed to collect such savings but there is a danger of unscrupulous elements entering the market and
collect funds and disappear from the scene. MFIs cannot be allowed to accept small savings unless they are
brought within the regulatory purview of the Central Bank or any other Regulator otherwise there is risk of
shaking the faith and trust of the poor people in the Micro Finance Institutions.
 Most of the MFIs have a non-corporate structure such as societies, trusts, religious or charitable trusts;
 Such MFIs do not have adequate capital and reserves and ability to raise capital on account of noncorporate structure;
 Management of MFIs have very limited exposure to managing financial business.
Normally Regulators are insisting that entities undertaking financial business should have certain minimum
capital and specified percentage of deposits collected shall be invested in Government securities and certain
minimum cash reserve is maintained with the Central Bank. Unless such depositor protection measures are
taken no entity can collect deposits from the public. In India the Reserve Bank recognises Non-Banking
Finance Companies and subject to compliance with regulatory norms, such NBFCs are permitted to collect
deposits. The extent of deposit liabilities that can be undertaken by the NBFCs is also prescribed by the RBI
and there is a continuous on-going supervision of such companies by RBI. Such MFIs are treated as on par
with banks and regulated accordingly.
But the non-corporate MFIs are operating in the Micro Finance Sector and such entities are not permitted to
collect thrift from the people. They are permitted to undertake only lending activity and sources of finance for
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such entities are borrowing from banks and raising funds from investors. In the process the poor persons facing
financial exclusion are denied the facilities to deposit their savings in any bank or other organization, which
assures safety of the funds deposited. In India this difficulty is addressed by directing the banks to introduce
Business Correspondents Scheme under which MFIs or any other business organizations operating in rural
areas are appointed as a correspondent of the bank and they accept thrift from the poor persons.
Lending activity of MFIs
MFIs are mainly engaged in lending activity and depend on borrowings and investment as sources for funds
for lending. Since such funds have high cost, the interest rates on loans given to poor are also on higher side.
This raises a regulatory issue whether interest rates to be charged by MFIs should be free and left to market
forces or prescribed by the Regulator. Challenges for regulation of lending activities by MFIs are:
 Regulation of interest rates
 Ensuring observance of Fair Debt Collection Practices by MFIs
In India Micro-finance has been important component of the financial inclusion process.
Use of micro credit loans by the borrowers: Many microcredit borrowers have microenterprises—
unsalaried, informal income-generating activities. However, microloans may not predominantly be used to
start or finance microenterprises. Scattered research suggests that only half or less of loan proceeds are used
for business purposes. The remainder supports a wide range of household cash management needs, including
stabilizing consumption and spreading out large, lumpy cash needs like education fees, medical expenses, or
lifecycle events such as weddings and funerals.
Promotion of savings: Savings has been called the “forgotten half of microfinance.” Most poor people now
use informal mechanisms to save because they lack access to good formal deposit services,. They may tuck
cash under the mattress, buy animals or jewelry that can be sold off later, or stockpile inventory or building
materials. These savings methods tend to be risky—cash can be stolen, animals can get sick, and neighbors
can run off. Often they are illiquid as well – one cannot sell just the cow’s leg when one needs a small amount
of cash. Poor people want secure, convenient deposit services that allow for small balances and easy access to
funds. MFIs that offer good savings services usually attract far more savers than borrowers.
Role of government in supporting microfinance: Government’s most important role is not provision of
retail credit services. Government can contribute most effectively by:
 Setting sound macroeconomic policy that provides stability and low inflation
 Avoiding interest rate ceilings - when governments set interest rate limits, political factors usually
result in limits that are too low to permit sustainable delivery of credit that involves high administrative
costs—such as tiny loans for poor people. Such ceilings often have the announced intention of
protecting the poor, but are more likely to choke off the supply of credit
 Adjusting bank regulation to facilitate deposit taking by solid MFIs, once the country has experience
with sustainable microfinance delivery,
 Creating government wholesale funds to support retail MFIs if funds can be insulated from politics,
and they can hire and protect strong technical management and avoid disbursement pressure that force
fund to support unpromising MFIs.
Committee on Financial Inclusion (CFI)
Government of India constituted a Committee to enhance financial inclusion in India on 22 June 2006. The
Committee presented its report in January 2008. CFI has initiated a mission called National Rural Financial
Inclusion plan. It has set targets to increase FI in the country across regions and across institutions (banks,
rural regional banks etc). It has suggested measures to address both, supply and demand constraints in
increasing financial inclusion. The measures to address supply constraints aim to provide finance (via banks,
micro-finance etc). Demand constraints imply that despite the supply people do not come forward because of
number of factors (highlighted above).
Moreover, to regulate the micro finance sector further, govt. is planning to introduce Micro finance bill in the
Parliament.
Social performance measurement of financial institutions
The Social Performance Task Force defines social performance as: "The effective translation of an institution's
social mission into practice in line with accepted social values that relate to serving larger numbers of poor
and excluded people; improving the quality and appropriateness of financial services; creating benefits for
clients; and improving social responsibility of an MFI."
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Most MFIs have a social mission that they see as more basic than their financial objective, or at least co-equal
with it. There is a great deal of truth in the adage that institutions manage what they measure. Social
performance measurement helps MFIs and their stakeholders focus on their social goals and judge how well
they are meeting them. Social indicators are often less straightforward to measure, and less commonly used
than financial indicators that have been developed over centuries. Today’s increasing use of social measures
reflects an awareness that good financial performance by an MFI does not automatically guarantee client
interests are being appropriately advanced.
CONCLUSION
Microfinance industry is now more regulated by the govt. which is making an impact on the working of Micro
finance institutions. E.g. The Andhra Pradesh Micro Finance Institution (Regulation of money lending) act,
which was introduced in 2010. The ordinance of Andhra Pradesh govt. that curbed the fresh lending and
recovery of loans in the state had hit the micro finance industry badly in the state. Earlier handful of Andhra
Pradesh based MFI were monopolizing the scene, but now a whole new breed of MFI’s has risen from the
ashes of MFI industry. Their loan members are increasing. A new ways of doing business are being devised.
Now there is no. of instances of MFIs who have raised from local as well as global sources and are marching
forward profitably. The important point to the entire exercise is the spirit of financial inclusion. Financial
Inclusion has far reaching consequences, which can help many people come out of abject poverty conditions.
The financial markets must act responsibly and ensure that the spirit of financial inclusion is not breached in
the future.
REFERENCES
[1] Shahidur R. Khandker, (1998), Fighting poverty with micro credit: Experience in Bangladesh, Oxford University
Press, New York.
[2] Thingalaya N.K. (2002), Micro finance and poverty alleviation: some issues, Financing Agriculture, Vol.34,
No.2, April-June 2002.
[3] Sa–Dhan Micro finance Resource Centre (2004), Indian Experience of Micro Finance: A Sustainable Banking
Solution to the Poor.
[4] Rangarajan C. (2007), Financial Inclusion: Some Key Issues, Lecture delivered at Mangalore University,
Mangalore, and August 10, 2007.
[5] NABARD Annual Report 2007.
[6] Subba Rao K. G. K (2007), Financial Inclusion: An Introspection, Economic and Political Weekly, Vol. 42, No
05, February 03- February 09.
[7] Thorat, Usha (2007a), Taking Banking Services to the Common Man – Financial Inclusion, Deputy Governor,
Reserve Bank of India at the HMT-DFID Financial Inclusion Conference 2007, Whitehall Place, London, UK,
June 19.
[8] NABARD (2008), State of Micro Finance in India - 2006-07, Mumbai.
[9] GOI (2008), Report of the Committee on the Financial Inclusion, January 2008.
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HOSPITAL WASTE GENERATION RATE IN KERALA - A
STATISTICAL ANALYSIS
ABSTRACT
Savitha K. L 1
T J Joseph 2
As India’s Health Services have emerged as the largest and fastest growing sector in the economy, the
hospital waste generation rate in the country is also growing. Heath care system has become existing
since time immemorial but there have never been so much concern about waste generated by them.
During the process of delivery health care institutions/ facilities generate different type of infectious
and/or hazardous wastes. This study attempts to measure and analyze the hospital waste generation rates
of three major hospitals in Kannur district of Kerala according to their ownership type. A survey was
conducted in these three hospitals on the basis of well structured questionnaire. The analysis covered
parameters such as average medical waste generation rate and waste collection efficiency. To identify the
hospital waste generation rate weighted measures have used and statistical parameters like efficiency test
was applied in this study. The analysis shows that the hospital waste generation rate in Kerala is well
below the national and international norms. However, waste collection inefficiency is quite higher,
especially in government hospitals. About 18 - 30 percentage of hospital wastes generated are uncollected.
The study revealed that the management of hospital waste is still facing a critical problem and require
huge amount and efficient technology and well storage facility otherwise it will create a huge treat to the
society.
KEYWORDS: Hospital waste, Generation rate, Collection efficiency
INTRODUCTION
Hospital waste generated from health care establishments has long been ignored and was treated as part of
solid wastes. Recently, it has become a matter of great concern since it is realized that the improper
management of hospital waste could have serious implications for public health and the general environment.
Hospital waste contains different items making it a special type of waste. If not properly sorted during
generation, its handling becomes even more difficulty. The proper management of this waste is still in its
infancy all over the world. There is a lot of confusion among generators, operators, decision makers and the
general community about the safe management of hospital waste. Hospital waste management in India has
become an intractable problem. Since the late 1980's increased attention has been focused on medical waste,
its handling and safe disposal. Although, quality control in health care has become essential, quality assurance
in hospital waste management is also important because both are complimentary to each other in achieving
"health for all". But it is possible that the realization may not be so universal as regards hospital waste
management.
Hospital waste can be defined as any unwanted residual matter arising from the hospital or activities related to
the hospital (World Health Organization 1999). Every year, relatively large quantities of potentially infectious
and hazardous wastes are generated in health care facilities throughout the world. Unfortunately, most
economically developing countries suffer financial and other constraints to adequately manage these wastes.
Generally in developing countries, few individuals in the staff of the health care facility are familiar with the
procedures required for an effective and efficient waste management program. Furthermore, the management
of wastes is delegated to poorly educated laborers who perform most activities without proper guidance and
insufficient protection.
An overview of existing literature reveals that, a number of studies on hospital waste management have
undertaken prior to 1980. The issues of hospital waste were discussed in the meeting conducted by World
1
2
Research Scholar, Department of Economics, Central University of Kerala, Kasaragod
Assistant Professor, Department of Economics, Central University of Kerala, Kasaragod
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Health Organization (WHO) at Bergen, Norway during 1983. The seriousness of improper bio-medical waste
management brought to the limelight of environment protection agency (EPA) of USA and this led to the
passing of Medical Waste Tackling Act (MWTA) November 1988. This made USA the pioneer as far as waste
management is concerned. WHO (1986) observed that health care establishments should be held legally
accountable for their waste management practices, based on the universal principle that the ‘generator is
responsible’. As far as possible the cradle to grave system of notification should be followed, which implies
that all stages of waste disposal are systematically controlled. Environmentally sound management involves
taking all practical steps to protect human health and the environment from hazardous wastes, like medical
waste. In an ideal world, this would mean reducing the generation of hazardous wastes to zero. In practice,
environmentally sound management means strictly controlling the storage, transport, treatment, reuse,
recycling, recovery and final disposal of wastes (UNEP, 2000). When segregated and properly managed,
medical waste streams are usually very small in quantity (WHO, 1999). In addition, most waste generated in
the healthcare facilities can be treated as regular municipal solid waste except for a varying portion needing
special attention such as sharps, pathological wastes, and other potentially infectious wastes, pharmaceutical,
biological and hazardous chemical wastes, collectively known as “Special healthcare wastes” and requires
proper packaging, storage, transportation and disposal (World Bank, 2000). The lack of segregation between
hazardous and non-hazardous waste, an absence of rules and regulations applying to the collection of waste
from the hospital wards and the on-site transport to a temporary storage location, a lack of proper waste
treatment, disposal of hospital waste along with municipal garbage, insufficient training of personnel,
insufficient personal protective equipment and lack of knowledge regarding the proper use of such equipment
are among the problems highlighted in literature are prominent factors contributing to poor medical waste
management (Manyele and Anicetus, 2006). The need for reduction of hospital waste generation rate and the
nature of the control measures must be an integral part of overall hazardous waste management policy.
RESEARCH PROBLEM
Over the last couple of years there has been growing concern about the problem associated with waste
generation and management in Kerala. The intense publicity and wide coverage of these events has been
attracting considerable attention to the issue of solid waste management with great emphasis to hospital waste.
Hospital waste generation if not properly treated and subsequently disposed on, then it will lead to the
transmission of water and air borne diseases. Hospital waste management is a technological area involving
multidimensional aspects and problems. The first step in managing hospital waste is to identify the magnitude
and source of generation of such wastes. There is no comprehensive study so far with respect to the magnitude
of hospital waste regeneration in Kerala. This study attempts to fill this gap by identifying the hospital waste
generation rates in selected hospitals in Kannur district of Kerala.
The daily medical waste generation rate is not constant and fluctuates randomly at major hospitals in Tanzania.
The improper medical waste management is a serious environmental problem not only in Tanzania but also
throughout the world. Medical waste contains a different item which makes it a special type of waste and if it
is not properly sorted during generations its handling becomes even more difficult (Kagonji and Manyele,
2011) The medical waste should be managed according to its types and characteristics. The waste disposal
methods varying in their capabilities, cost availability to generation impact on the environment. But the cost
of construction, operation and maintenance of system for managing waste represents a significant part of
overall budget of the hospital. Health care provider should always try to reduce the waste generation in day to
day work in the clinic or at hospital.(Hedge, Kulkarni, and Ajantha, 2007). The lack of segregation between
hazardous and non-hazardous waste, an absence of rules and regulations applying to the collection of waste
from the hospital wards and the on-site transport to a temporary storage location, a lack of proper waste
treatment, disposal of hospital waste along with municipal garbage, insufficient training of personnel,
insufficient personal protective equipment and lack of knowledge regarding the proper use of such equipment
are among the problems highlighted in literature are prominent factors contributing to poor medical waste
management (Manyele and Anicetus, 2006). The need for reduction of hospital waste generation rate and the
nature of the control measures must be an integral part of overall hazardous waste management policy.
Khajuria and Kumar (2007) observed that the waste is disposed off in unscientific manner, most of the
hospitals, nursing homes and pathological laboratories dispose of the waste in their neighborhoods, due to lack
of awareness, inadequate services, limited utilization of existing facilities, etc. But few take proper care of
their waste. The main objective of their study is to reveal the waste generated per day on each patient and the
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present mode of waste management within the unit bed of government hospital in Agra and the study was
conducted in the three government hospitals in Agra. The total waste was calculated by taking sample of every
day during their study period. The study shows that the average amount of waste generated per day per bed
was found to be 4.49, 0.12 and 4.20 kg per bed per day respectively and the open burning of waste as well as
in appropriate use of incinerator were the commonest mal practices found in their study. So Khajuria and
Kumar suggest that the regular monitoring of the waste management practices in the hospital and evaluate the
performances of the system time to time will help to manage their waste in a proper manner.
OBJECTIVES
There are two main objectives for this study. Firstly, the study attempts to analyze the hospital waste generation
rates of selected hospitals in Kerala in terms of their ownership pattern. Secondly, the study examines the
variations in the waste collection efficiency of these hospitals.
DATA AND METHODOLOGY
We use both primary and secondary data to identify the magnitude of hospital waste generation in Kerala.
Primary data has been collected through a survey on the basis of purposive sampling technique. Three major
hospitals from Kannur district of Kerala have been selected based on three different types of ownership (Public,
Private, and Co-operative sector) and their bed strength for finding the waste generation rate of these hospitals.
The primary data generated through the use of interview schedules were transferred into master tables through
code- designs for tabulation purposes, followed by preparation of functional tables for analyses and
interpretation. Secondary data have been collected from different sources. It include the official data collected
from the reports of Central Pollution Control Board (CPCB) (2000), World Bank (2003), WHO (1999), Census
(2001), Economic Review (2009-2013), and information from various other publications.
The study is mostly descriptive and indicative in nature. No rigorous statistical analysis has been undertaken.
However, statistical techniques like ratio analysis, waste generation rates, and efficiency tests were applied.
Histograms are used for the graphical presentation of the results, illustrating the findings of the study.
METHODS USED FOR ANALYSIS
In order to analyze the extent and magnitude of hospital waste generation as well as the waste collection
efficiency of the selected hospitals, the following methods are used. (Kagonji, I. S. and Manyele, S. V. (2011).
Measure of Hospital Waste Generation Rate
The waste generation rates in the selected hospitals are computed as
𝑾𝒅𝒑 =
𝑾𝒅
𝑵𝒑
Where,
Wdp = Waste generated per day per patient
Wd = Total weight of waste (in kg) generated per day,
Np = Number of patients attended in a hospital per day (inpatient and outpatients)
Measure of Hospital Waste Collection Inefficiency, IEc (in percentage)
The efficiency in waste collection by the hospitals are measure using the inefficiency index developed by
Kagonji, I. S. and Manyele, S. V. (2011)
𝑰𝑬𝒄 = (𝟏 −
𝑾𝒅𝒄
) ∗ 𝟏𝟎𝟎
𝑾𝒅
Where,
Wd = Total weight of waste (in kg) generated per day.
Wdc = Total waste collected per day.
Analysis and Results
Table 1 shows the total number of hospitals, bed strength, waste generated and disposed in Kerala.
Table 1. Number, Beds and Waste Generated in Hospitals of Kerala, (2011)
Particulars
Strength
No. of Hospitals
2971 (Nos.)
Bed strengths
70635 (Nos.)
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Bio-medical Waste Generated
30 tone/day
Total Waste Generated
328 tone/day
Total Waste Disposed
29 tone/day
Source : State Planning Board, Govt. of Kerala, IMAGE report 2011
Table 2 shows that there exists a significant variation in respect of waste generated by various hospitals per
month per bed. The waste generation rates in government hospital are much higher when compared to both
private and co-operative hospitals. The extent of waste generated in hospitals mostly depends on the number
of patients when compared to that of outpatients. Column (6) of Table 2 provides the magnitude of hospital
waste generated by inpatients in hospitals according to their ownership type. The waste generated per inpatients
is the lowest in private hospitals (0.125 kg/inpatient) followed by co-operative hospitals (0.147 kg/inpatient).
Government hospitals are a distant away with a waste generation rate of 0.438 kg per inpatient. This indicates
that private and co-operative hospitals have better mechanism in managing waste generated in the process of
their health care services, while government hospitals still need to improve their waste management facilities
as well as policies.
Table 2. Waste generation rate of different hospitals in Kannur
Total amount
Hospital
Types of health
Number
Inpatient
Outpatient
of waste
Waste
care units
of beds
per day
per day
generated per
generation rate
day (kg)
(Inpatients)
(1)
(2)
(3)
(4)
(5)
(6)
Government
610
233
2293
102
0.438
Private
350
192
2392
24
0.125
Co-operative
250
116
1912
17
0.147
Total
1210
541
6597
143
0.264
Source: Sample survey data, 2011
Hospital
Waste
generation
rate (Total)
(7)
0.040
0.009
0.008
0.020
Since, hospital wastes are more hazardous and dangerous when compared to other types of solid wastes, its
collection and disposal is utmost important. Hospitals are expected to collect and properly dispose the entire
wastes generated in the process of health care services. Therefore, 100 % efficiency in waste collection is
expected. Table 3 indicates how the hospitals selected in this study deviates from full waste collection
efficiency. Government hospital shows the largest deviation from full waste collection efficiency with almost
29 per cent deviation, while co-operative hospitals deviate 21.6 per cent and private hospitals reporting lease
deviation of 18.75 per cent.
Table 3. Waste collection inefficiency of various hospitals in Kannur District, Kerala
Total amount of
Total amount of
Hospital Waste
Types of health care
waste generated
waste collected per collection
units
per day (kg)
day (kg)
inefficiency (%)
(1)
(2)
Government
Private
Co-operative
Total
102
72.33
24
19.50
17
13.33
143
105.16
Source: Sample survey data, 2011
(3)
(4)
29.09
18.75
21.59
26.46
CONCLUSION
Modern facilities, medicines and other medical infrastructure facilities help to improve the health status of the
people. As the number of hospitals is increasing, the waste generated from the hospital is also increasing. Most
of the wastes generated by hospitals are infectious and/or hazardous in nature. This study attempt to measure
and analyze the hospital waste generation rates of three major hospitals in Kannur district of Kerala based on
their ownership type. The analysis covered parameters such as average medical waste generation rate and
waste collection efficiency. The results show that the hospital waste generation rate in Kerala is well below
the national and international norms. However, waste collection inefficiency is quite higher, especially in
government hospitals. About 18 - 30 percentage of hospital wastes generated are uncollected. The study
revealed that the management of hospital waste is still facing a critical problem and require huge amount and
efficient technology and well storage facility otherwise it will create a huge treat to the society.
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REFERENCES
[1] Acharya, D.B, and Singh M, (2000). ‘The book of hospital waste management’, Minerva Press, New Delhi.
[2] Agarwal, R (1998). ‘Medical waste Disposal. Issues, Practices and Policy. An Indian and International
Perspective’. Seminar on Health and the Environment. Centre for Science and Environment. New Delhi. India.
[3] Baldwin, D.A (1989), The management of infectious waste, Pergamon press, Inc.
[4] Countreau-Levins, S. (1984) ‘Private sector Participation in Municipal Solid Waste Services in Developing
countries’, Vol 1: Urban management Program Discussion paper (13): The Formal sector- World Bank.
[5] CPCB (2000) ‘Guidelines on “biomedical waste management’, Central Pollution Control Board, New Delhi.
[6] Hedge, V, Kulkarni R.D, and Ajantha G.S (2007). Biomedical waste management. Journal of Oral and Maxillo
Facial Pathology, Vol.11, No.1.
[7] Kagonji, I. S. and Manyele, S. V. (2011). Analysis of the measured medical waste generation rate in Tanzanian
district hospitals using statistical methods. African Journal of Environmental Science and Technology, Vol.
5(10), pp. 815-833,
[8] Khajuria. A and Kumar A (2007). Assessment of Health Care Waste generated by Government Hospitals in
Agra City, India, Our Nature, Vol.5, pp 25-30.
[9] Manyele S.V, Anicetus H. (2006). Management of Medical Waste in Tanzanian Hospitals, Tanzania Health Res.
Bulletin. Vol.8 (3), pp.177-182.
[10] UNEP (United Nations Environment Programme) (2000). “Minimizing Hazardous Wastes”: Simplified Guide
to the Basel Convention.
[11] WHO (1986). “Financial and economic aspects of environmental management of vector control” Geneva,
World Health Organization.
[12] WHO (World Health Organization) (1999). TechNet Subcommittee Meeting on the Disposal Destruction of
Sharps and other Infectious Waste. Geneva, World Health Organization.
[13] WHO (World Health Organization) (2000), ‘Wastes from health-care activities’, Fact Sheet No. 253, October
2000.
[14] WHO (World Health Organization) (2004) ‘Findings on the assessment of small-scale incinerators for health
care waste’, WHO 2004.
[15] World Bank (2000). Health Care Waste Management Guidance Note.
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A COMPARATIVE STUDY OF THE IMPACT OF JOB STRESS AND
JOB INVOLVEMENT ON EMPLOYEE SATISFACTION AND
INTENTION TO QUIT
ABSTRACT
Chetna Pandey 1
Ritu Gangil 2
The present study is designed to find out the impact of job stress and job involvement on employee
satisfaction and intention to quit. It’s a comparative study between the service industry and
manufacturing industry based in Gwalior region. A sample of 150 employees was studied and the data
were analysed using statistical methods, the result clearly indicates that the stress and involvement in both
the sector are more or less same. Further the results also indicates that there is a strong relationship
between employee satisfaction and intention to quit.
KEYWORDS: Job Stress, Job Involvement, Employee Satisfaction and Intention to quit
INTRODUCTION
Job Stress
According to Robbins and Sanghi (2006) “A dynamic condition in which an individual is confronted with an
opportunity, constraints, or demand related to what he or she desires and for which the outcome is perceived
to be both uncertain and important.” stress is an increasing problem in organizations and often cause adverse
effects on performance.
Job Involvement
Job involvement can be elaborated that it is engagement regarding the internalization of values about the
righteousness of work or the significance of work in the value of the individual (Lodahl & Kejner, 1965). This
shows that researchers are working on this long ago and many organizations have applied the research findings.
Most of the researchers are agreed on this fact that job involvement is different construct from other associated
constructs which includes organizational commitment, job satisfaction and intrinsic motivation (Shore,
Thornton & Shore, 1990; Patterson & O'Driscoll, 1990; Brooke, Russell & Price, 1988; Dolke & Srivastara,
1988; Blau, 1986)
Employee Satisfaction
According to Nancy C. Morse (1997) “Satisfaction refers to the level of fulfillment of one‟s needs, wants and
desire. Satisfaction depends basically upon what an individual wants from the world, and what he gets.”
Employee satisfaction is a measure of how happy workers are with their job and working environment. It is
sure that there may be many factors affecting the organizational effectiveness and one of them is the employee
satisfaction. Effective organizations should have a culture that encourages the employee satisfaction, Bhatti &
Qureshi, (2007)
Intention to Quit
Elangovan (2001) defines intention to quit as the strength of an individual’s conviction that he or she will stay
with or leave the organisation in which he or she is currently employed. It is usually seen as a dependent
variable and serves as an indicator of the strength of the probability that a person will leave his or her
organization in the foreseeable future. In view of the importance of having a stable work force, it is important
for organizations to identify the factors that are involved in the intention of an employee to either leave or
remain with the organization. According to Steers & Mowday (1981), intention to quit is influenced by a
wide range of factors.
1
2
Assistant Professor, Aditya College, Gwalior
Assistant Professor, Aditya College, Gwalior
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Managers who were working within the different organizations were under stress. Results showed that 80%
of the mangers do not fully utilize their potential because of the stress (2011). Jiunn-woei liana et el defined
the information system that MIS focused on job stress and job satisfaction and found that Job stress was the
source of burnout and turnover of IS employees and there existed a negative relationship between job stress
and job satisfaction of IS employees (2007). Mrs. Vishal S analyzed the influence of various factors leading
to job stress and job satisfaction like advancement in technology, management information system and IT.
Due to these factors the performance of the employees was being affected (2011).
Workload stress can be defined as reluctance to come to work and a feeling of constant pressure (i.e. no effort
is enough) accompanied by the general physiological, psychological, and behavioral stress symptoms
(Division of Human Resource, 2000)
Meneze (2005) explained this phenomenon as eccentric in scope of the company; similarly employees perceive
themselves as they have less participation in making decision so these factors are found to be the reasons of
high stress. Furthermore uncontrollable working surroundings, character mannerism, huge amount of rest and
indefinite laws and regulations impact the performance of people working in organization. On the other hand
people who are managed properly in an organization always marked as vital talent for the company and if their
nervous tension level is overlooked then factors like motivation and low moral will be seen (Meneze, 2005).
Ahsan N et al found in their study that job stress, job satisfaction and overall performance in work depend
upon management role, work pressure and role ambiguity (2009). Bytyqi F et el in their study examined
employees’ level of work stress, job satisfaction and organizational commitment and the impact these
workplace dimensions have in one another and concluded high level of job satisfaction, organization
commitment and work stress (2010).
[1] To find out the impact of employee satisfaction on intention to quit.
[2] To compare between the effect of job stress and job involvement on employee satisfaction and
intention to quit in service industry and manufacturing industry.
[3] To find out the impact of job stress and job involvement on employee satisfaction.
HYPOTHESIS OF THE STUDY
Ho (1): there is no difference between in job involvement of employees in service and manufacturing industry.
Ho (2): there is no difference between in job stress of employees in service and manufacturing industry
Ho (3): there is no impact of job involvement and job stress on employee satisfaction
Ho (4): there is no difference between the effect of employee satisfaction and intention to quit on employees.
The study was exploratory in nature and random sampling technique was used to select the sample.
Sampling element and sample size: individual employee of service and manufacturing industry was the sample
element. A total of 150 employees was included in the sample out of which 75 employees were of service
industry and 75 employees were of manufacturing industry respectively.
Data collection tools: data was collected by using self-designed questionnaire of job stress, job involvement,
employee satisfaction and intention to quit containing 20, 9, 23 and 3 questions respectively.
Data analysis tools: statistical methods like reliability analysis, linear regression and multiple analysis and ZTest was used applying SPSS software.
RESULTS AND INTERPRETATION
Reliability Analysis
S.No.
1
2
3
4
Variables
Job Stress
Job Involvement
Employee Satisfaction
Intention to Quit
Cronbach Alpha
0.937
0.884
0.849
0.745
Split half
0.952
0.870
0.710
0.625
Z- Test Analysis
Ho (1): there is no difference between in job involvement of employees in service and manufacturing
industry.
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Independent Samples Test
Levene's Test for
Equality of
Variances
jobinvolve Equal variances
ment
assumed
t-test for Equality of Means
Mean Std. Error
Sig. (2- Differenc Differenc
tailed)
e
e
95% Confidence
Interval of the
Difference
F
Sig.
t
df
3.598
.060
-2.000
148
.047
-2.20000 1.10020 -4.37414
-.02586
-2.000
143.8
72
.047
-2.20000 1.10020 -4.37465
-.02535
Equal variances
not assumed
Lower
Upper
The p value 0.60 (sig) is greater than α level for the test (.05) that means the null hypothesis is not accepted,
hence it an be concluded that there is no difference between the level of job involvement in manufacturing
and service industry
Ho (2): there is no difference between in job stress of employees in service and manufacturing industry
Independent Samples Test
Levene's Test for
Equality of
Variances
Jobstre
ss
Equal variances
assumed
t-test for Equality of Means
F
Sig.
T
df
Sig. (2tailed)
8.092
.005
2.750
148
.007
5.85333
2.750
136.80
5
.007
5.85333
Equal variances
not assumed
Mean
Std. Error
Difference Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.12832
1.64750
10.05916
2.12832
1.64467
10.06200
The p value 0.05 (sig) is equal to α level for the test (.05) that means the null hypothesis is not accepted, hence
it an be concluded that there is a difference between the level of job stress in manufacturing and service
industry.
Regression Analysis
Ho (3): there is no impact of job involvement and job stress on employee satisfaction
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
Std. Error
41.864
6.588
Jobstress
.536
.112
Jobinvolvement
.256
.219
Coefficients
Beta
t
Sig.
6.354
.000
.432
4.788
.000
.105
1.167
.245
a. Dependent Variable: employeesatisfaction
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The results of multiple regression show that there is no impact of job involvement on employee
satisfaction on the other hand the result showed that there is impact of job stress on employee
satisfaction. So to provide employee satisfaction organization need to reduce stress.
Ho (4): there is no difference between the effect of employee satisfaction and intention to quit on employees
Coefficientsa
Model
1
(Constant)
Unstandardized Coefficients
Standardized
Coefficients
B
Std. Error
Beta
6.634
1.030
ES
.050
a. Dependent Variable: ITQ
.012
.335
t
Sig.
6.441
.000
4.327
.000
The t value is significant at .000 level of significance which is less than 0.05 level of significance hence it can
be concluded that employee satisfaction has an effect on employee’s intention to quit. The null hypothesis is
thus not accepted.
CONCLUSION
The present paper was a comparative study between the level of job stress and job involvement between the
employee of manufacturing and service sector. The results showed that there is a difference in the level of
stress in service and manufacturing industry. But there is no difference in job involvement among the
employees of service and manufacturing industry. To further stress in job also affects employee satisfaction
but this is not the same for job involvement. At last more the satisfied employees the longer duration they will
stay with organization. So organization should make efforts to reduce the stress they will make employee
satisfied and longer their stay with the organization.
REFERENCES
[1] Bhatti, K., & Qureshi, T. (2007). Impact of employee participation on job satisfaction, employee commitment
and employee productivity. International Review of Business Research Papers, 3(2), 54 – 68.
[2] Kerry Fairbrother and James Warn, (2002) “workplace dimensions, Stress and job satisfaction”, journal of
managerial psychology, volume no. 18 PP.8-21 (2002).
[3] Khalid Salman and Irshad M Z. (2010), “Job satisfaction among bank employee in Pakistan: a compensation
study
[4] Lian Woei Jiunn. (2007), “Job stress, job satisfaction and life satisfaction between managerial and technical IS
professional”. (2007).
[5] Lodahl TM, Kejner M. (1965). The definition and measurement of job involvement. Journal of Applied
Psychology, 49: 24-33.
[6] Meneze, M.M., 2005. The Impact of Stress on productivity at Education Training & Development Practices:
Sector Education and Training Authority.
[7] Mrs. Samartha Vishal. (2001). “impact of job stress on job satisfaction”. Indian journal of commerce and
management studies, volume-II, (March 2011).
[8] Nancy C. Morse , (1977)-Satisfactions in the white-collar job, Ayer publishing
[9] Nelufar Ahsan. (2009). “A Study of job stress on job satisfaction among university staff in Malaysia: Empirical
Study, European journal of social sciences, volume 8, Number 1 (2009).
[10] Ram Nanik. (2011). “volume Role conflict and role ambiguity as factors in work stress among managers: A
study of manufacturing sector in Pakistan, Asian social science, volume 7, February 2, (2011).
[11] Villanueva. (2009), “occupational stress and intention to leave among employees in small medium enterprises”.
International journal of stress management. Vol 16(2), (May 2009).
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EVALUATING THE PERFORMANCE CHARACTERISTICS OF
SELECT BANK FUNDS USING POPULAR AND ADVANCED
MEASUREMENT TOOLS
ABSTRACT
Vishu Kapoor 1
Kunal Adhikari 2
Rakesh Shahani3
The paper presents a detailed performance evaluation of select Banking Sector mutual funds (which
invest primarily in banking stocks) through popular and advanced measures of risk-return analysis. The
data used is our analysis is weekly returns for the period Oct 2010 to Sep 2013. The results of study
reveals that most of the funds in the selected category have given negative absolute return and also
negative risk adjusted return during the study period. The sampled funds thus do not seem to have
rewarded the investors and this being the high risk/high beta category the funds could not deliver the
return commensurate with the risk. The study also gives a comparative analysis of the performance of
the funds by altering the yardstick of performance. The results show that the funds have delivered
somewhat better returns when the index of comparison is the sectorial Banking Index to which these
funds belong, however when the index is changed to a broader more popular more research based
benchmark or the NSE CNX 500 most funds fail to deliver performance irrespective of the performance
measurement tool employed.
KEYWORDS: Sharpe, Treynor, Jensen alpha, M Square ,Information Ratio, CNX 500, S & P BSE
Bankex
INTRODUCTION
Mutual Funds in India have been traditionally launching schemes which are either growth or income schemes
with a clear focus on equity or debt instruments. However today Indian Mutual Funds have shifted their stand
by launching schemes which are fine tuned/tailor made to meet the specific requirements of an
investor.Schemes have been launched to cater almost all types of investors which are designed according to
their tastes and specific requirements. Mutual Funds are now giving a lot of emphasis to sectorial schemes
which try to encash the potential of any one sector like Pharma, Services , FMCG, IT, Telecom etc. Thus
instead of investing in a universe of stocks, the focus has now shifted to only selected stocks of any one sector.
One of the reasons for the shift in stand of the mutual funds from general to specific is the difference in growth
rates across sectors i.e. sectors like IT, Banking, Pharma have in the last few years grown at a faster pace than
some of the traditional sectors like metals and textiles .Thus the mutual funds are trying to cash on the growth
potential of those sectors which have benefited the most from the India growth story and also from the changing
global business scenario.
REVIEW OF EXISTING LITERATURE
Jain Garima,Shikha and Rakesh Shahani (2013)study on select equity linked saving schemes reveals that
almost all the fund perform well on basis of “pure return” but fails to beat the benchmark when different
measures of risk were taken into consideration.
1
Undergraduate Student &Research Scholar; Dept of Business Economics, Bhim Rao Ambedkar College (University
of Delhi)
2
Undergraduate Student &Research Scholar; Dept of Business Economics, Bhim Rao Ambedkar College (University
of Delhi)
3
Associate Professor and Corresponding author; Dept of Business Economics, Bhim Rao Ambedkar College
(University of Delhi)
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Jain Shikha,Aakanksha and Rakesh Shahani (2012) evaluated the performance of select large cap mutual fund
through different measures of relative risk-return analysis. The study found that the performance of funds with
respect to benchmarks was inconsistent.
Kale and Uma (1995) studied different types of schemes on the parameter of CAGR and found that CAGR
was highest for growth schemes signifying that risk matched the return taken.
Shukla and Singh (1994) made a study of performance of the fund managed by a professionally qualified fund
manager with a manager who was not qualified. The results showed that the knowledge of diversification
learnt was applied but such a manager also took higher risk than a non professional manger.
Silva D, Stephen, D'Silva , Bernadette & Roshni(2012), tried to evaluate the factors which are responsible for
increase in investment in mutual funds in India. They also tried to evaluate the factor of demography plays in
investment in mutual funds.
Sharma Deepika, Poonam Loothra, & Ashish Sharma (2011) showed through the results that in the short run
HDFC Top 200 and HDFC Equity performance was better than other schemes , but in long run, Reliance
Regular Savings Equity was found to beat the others
Singh K Binod ( 2012) in his study paper explained the structure of mutual fund, operations of mutual fund,
comparison between investment in mutual fund and bank and calculation of NAV etc.
Goetzmann William, Ingersoll Jonathan, Spiegel Matthew, & Welch Ivo (2002), explained how Sharpe tool
could be strengthened in order to get a real results. This was important because Sharpe as well as other
measures of risk to return can be manipulated by using various strategies.
Sondhi H J and Jain P K (2005) studied 36 mutual fund equity schemes over a ten year period 1993-2002
against BSE Sensex as the Benchmark. They found that the returns of the fund were lower than even the risk
free rate (364 TB)
SCOPE AND OBJECTIVES OF THE STUDY
The present study attempts to evaluate the performance of the Banking Sector Specific Mutual FundSchemes
which are popular amongst the investors. Indian Banking Industry is today the backbone of the Indian
Economy and stands at Rs 77 trillion industry. The banking sector was largely unaffected and even emerged
stronger after the global financial turmoil of 2008.
Although there is no doubt about the growth potential of this sector but even today there is not much progress
on certain aspects and one such aspect is the financial inclusion .Today there are less than 7 bank branches and
only 3.5 ATM for 1,00,000 of country’s population.
The performance of the Selected Sample of Banking and Financial Sector Funds is studied under the present
study and data is collected on NAV based weekly returns of selected schemes for a three year period Sep 2010Sep
2013.
The
sources
of
data
are
websites
mainly
www.moneycontrol.com,
www.nseindia.com,www.bseindia.com and websites of AMFI and RBI. The performance measurement tools
have been chosen so as to take care of both risk and return aspects and comparison has been made by matching
their returns with the two carefully selected benchmarks namely the CNX 500 and S&P BSE BANKEX.
ABOUT THE SELECTED SAMPLE
The study evaluates the performance of leading Banking Sector Specific Mutual Fund Schemes in India. These
funds have been chosen keeping in view the following consideration:
[1] They must be in existence for at leastfive years.
[2] All the funds are Growth funds and follow the guidelines of SEBI regarding investments to be made
by such schemes in the sector specific stocks.
[3] The funds enjoy respectable Assets under management
[4] Funds follow good portfolio diversification within the sector. This would include investment in Public
Sector Banks, Private Sector Banks , NBFCs etc
The sample thus includes following mutual fund schemes :[1] ICICI Prudential Banking and Financial Services-RP (G). (Launch Date :July 2008, AUM as on 10th
November 10, 2013 was 238.76 crores)
[2] Sahara Banking and Financial Services (G).(Launch Date :Sep 2008, AUM as on 10th November 2013
was 13.67 crores)
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[3] UTI Banking Sector Fund (G). (Launch Date :March 2004, AUM as on 10th November 2013 was
283.42 crores)
[4] Reliance Banking Fund (G).(Launch Date :July 2008, AUM as on 10th November 2013 was 1,392.51
crores)
The investment philosophy of all the schemes is identical i.e. to provide long term capital appreciation to the
investors by investing the funds collected in equity and equity related instruments of Banking, Financial
Services and Non Banking Financial Companies (NBFCs) that form part of the Banking and Financial Services
Industry.
ABOUT THE BENCHMARKS
The two indices selected as benchmark indices are CNX 500 and S&P BSE BANKEX. The CNX 500 is India’s
first broad based stock market index of the Indian stock market. CNX 500 includes 500 stocks and is able to
represent almost 96% of the total market capitalization and about 93% of the total turnover on NSE (Jain
Garima et al. 2013). The second index is the BSE BANKEX, a banking sector index developed by Bombay
Stock Exchange and tracks the performance/return of listed Banks, Finance and Non Finance Companies. The
basic idea of comparing the performance of our funds with two benchmarks has been to get a holistic view of
the performance (Jain Shikha et al. 2012) i.e. whether they are able to beat a broader market or their own sector
index or both. It is also important to include both the indices because traditionally the Banking Sector has been
a high beta sector; it has outperformed the market when the market is rising but is also quick to lead the
downfall in a bear phase. A fund /scheme would thus actually be rewarding the investors if it grows in line
with sectorial index chosen i.e. BSE BANKEX during the rising market phase but also does not fall much
when the market is falling .
Measurement of Fund’s Performance: Traditional and Basic Tools
The fund’s performance has been measured using Traditional tools, Popular or Basic tools and Advanced tools.
The traditional tools include Return on a fund (NAV of a day minus previous day’s NAV) and the risk on a
fund (the standard deviation of the returns). A fund with higher return and the lower standard deviation would
ideally be more desirable because it is maximizing the return by taking lower risk.
The measurement of risk using Basic or Popular tools is studied with the help of ratios. These ratios may be
broadly classified as Sharpe’s, Treynor’s and Jensen’s ratios and all the three measure the risk adjusted
performance .The Sharpe ratio is calculated by subtracting the risk-free rate (91 days treasury bills as used in
our case) from the portfolio return and dividing the result by the standard deviation (a measure of total risk) of
the portfolio returns. Treynor ratio on the other hand considers only systematic risk (as against total risk of
Sharpe). The systematic risk is measured by a concept called ‘beta’ and shows the volatilityof a fund in
comparison to that of its index or benchmark. The third Basic tool of measurement is Jensen’s Measure (also
called Jensen alpha)and represents the average return on a portfolio over and above that return predicted by
the Capital Asset Pricing Model (CAPM), given the portfolio’s beta and the average market return. A
Comparative Picture of the three ratios is given in Table 1 below:S.No.
1
2
3
Table 1: Comparative Statement of Popular Tools of Performance Measurement
Tool/Yardstick Formula (Portfolio)
Formula (Market) Risk & Return Measures Used
Sharpe
Sp = (rp – rf) / σp
Sm = (rm – rf) / σm Standard Deviation (Total Risk) Excess
Return (rp – rf ) & (rm-rf)
Treynor
Tp = (rp – rf) / βp
Tm = ( rm-rf )/ βm
Systematic Risk (Beta) Excess Return
(rp – rf ) & (rm-rf)
Jensen
αp = rp – [ rf + βp( rm – rf) ]
NA
CAPM & alpha
NOTES
1. 𝐒𝐩 = Sharpe Ratio for the portfolio, Sm = Sharpe Ratio for the Market, 𝐫𝐩 = expected total
portfolio/fund’s return, 𝛔𝐩 = standard deviation of the portfolio/fund, 𝐓𝐩 = Treynor ratio for the
portfolio, Tm = Treynor for Market, 𝛂𝐩 = the alpha for the portfolio; 𝛃𝐩 = the weighted average beta
of the portfolio; 𝐫𝐟 = the average risk free rate;,𝐫𝐦 = the average return on the market index.
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2. Beta of the portfolio is computed by covariance between the market and the portfolio return
divided by variance of the market return.Beta of the portfolio is computed as:
𝛃𝐩 =
𝛔𝐩𝐦
𝛔𝟐𝐦
Measurement of Fund’s Performance : Advanced Tools
Advanced tools mainly focus on one of more specific feature of performance evaluation of fund manager e.g.
Information ratio focuses on consistency aspect or the consistency with which a manager generates excess
return, Sortino is a tool to reward the fund manager for generating positive returns in terms of restricting the
denominator of the Sharpe tool to variation due to negative asset returns. M Square tries to match the risk with
benchmark risk by combining the portfolio of the fund manger with certain proportion of risk free asset till the
two are having same level of risk and so on.
It is important to note that advanced tools are something not entirely a new phenomenon but only an
improvement over the basic tools; information ratio is an improvement over Jensen alpha while Sortino and
also M Square (to some extend) is an improvement over the all popular Sharpe ratio.
A Comparative Picture of the four advanced ratios is given in Table 2 below:S.No.
4
5
6
7
Table 2 : Comparative Statement of Advanced Tools of Performance Measurement
Tool/Yardstick Formula (Portfolio) Risk & Return Measures
Sortino
(rp – rf) / σd
(rp – rf )is the Portfolio Excess Return, σd is Std
Deviation of negative returns.
Information
αp / σ (ep)
Jensen alpha αp & tracking error
M Square
[rp x €]+[rf x (1€ = σm / σp is weight of risky portfolio
€ )] - rm
S&P (RRA)
Av. of Fund’s Rel
Average & Std Deviation
Perf / Std Dev of
Fund’s Rel Perf
THE FINDINGS OF THE STUDY
Assessment based upon traditional tools of Performance Measurement
The two traditional tools (already discussed) are average return and standard deviation .In terms of the average
returns only one of the funds is able to beat both the benchmarks selected (CNX 500 as well as BSE BANKEX).
In terms of standard deviation of funds’ weekly return, all the funds under study seems to be having higher
standard deviation than that of the benchmarks CNX 500, however three of the four funds have lower standard
deviation than the standard deviation of the BSE BANKEX, the second benchmark selected for comparison.
The results are not at all surprising even if all the funds are proved to be having higher standard deviation than
the broader market index i.e. CNX 500 because these funds are bank specific focused funds and the stocks
included are high beta stocks in their portfolio which are inherently more risky than the overall market.
However the good sign is that three of these funds are taking lower risk than the BSE BANKEX , the specific
index for these funds.
Assessment based Basic Tools of Performance Measurement
The performance of these funds using Sharpe Ratio (the most popular Basic Research tool of performance
evaluation) reveals that that Sharpe returns are negative for all the four funds under consideration, however
the same is also true for both the benchmarks during the same period. Now two of the four funds have lower
Sharpe negative as compared to both the benchmarks ( i.e. they have beaten the two benchmarks reflecting
superior performance) while the remaining two funds have beaten only the broader CNX 500 benchmark.
The other Basic tool which we have considered in our analysis is the Treynor Ratio which includes only the
systematic risk as against total risk given by Sharpe ratio. The results show that two funds were able to beat
the market Treynor while considering CNX 500 as the benchmark however none of the funds were able to beat
the market Treynor when benchmark for Treynor ratio was shifted to BSE BANKEX.
The third Basic tool of performance measurement used in our study is the Jensen (alpha), the assessment based
upon this ratio shows that only one fund is able to generate positive alpha returns when compared with CNX
500 while none of the funds were able to generate positive returns when BSE BANKEX was considered as the
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benchmark. This result is somewhat confusing and shows that none of the funds have actually done well when
compared to their respective sectorial indices. It also shows that the funds are finding it difficult to beat specific
indices when risk adjusted returns based upon CAPM model is considered.
Assessment based upon Advanced Ratios
The advanced Ratios are new development in the field of mutual fund performance and very few India specific
research studies have assessed the fund’s performance based upon these ratios. The ratios that we have
considered in our analysis include the Information, M Square and Sortino ratios The analysis based on Sortino
ratio shows that two of the four funds are able to beat both the indices and the other two funds were able to
beat only the broader index (i.e. CNX 500). The information ratio which mainly reflects the consistency of the
fund in beating the benchmark, showed that only one fund could generate positive information ratio with CNX
500 as the benchmark. This was also the fund that was able to generate positive alpha returns. A Comparative
Picture of the Assessment using all the ratios discussed above is given in Appendices (Appendix I) below.
Ranking of Funds
Finally after analyzing the performance of the funds, these were also ranked (from I TO IV, I was best
performing, IV was the worst performing fund ) on the basis of their performance with respect to each of the
parameters discussed above and the results are displayed in the Appendix II below. (Jain Shikha et al. 2012)
The table also provides information each fund wise ( in paranthesis) whether the fund has beaten one , two ,
both or neither of the benchmarks .This table thus serves as yet another dimension to judge the performance
of funds.
The results of the ranking of the funds reflect the consistency of performance across ratios i.e. the fund which
obtained the 1st rank in terms of traditional ratios also obtained more or less same ratio for popular and
advanced tools. However the same consistency was not seen in terms of beating of the benchmarks e.g. in case
of performance evaluation based upon Treynor ratio although the fund which was the best performing out of
the sampled funds managed to obtain first rank, but it could not beat sectorial the benchmark (BSE BANKEX).
CONCLUSION
The present study provides a detailed analysis of performance evaluation of select Banking Sector mutual
funds through traditional, popular/basic and advanced measures of risk-return. Although the Funds/Schemes
chosen by the study were given five or four star ratings by a leading broking house, majority of these funds
could not score well even when the traditional tools like average return and standard deviation were used as
tools of performance evaluation. Majority of funds under study had lower average return than the benchmarks
with only one of the funds managing to beat the two benchmarks selected for evaluation (CNX 500 as well as
BSE BANKEX). In terms of standard deviation of funds’ weekly return, all had higher standard deviation than
that of the benchmark CNX 500. The same story was seen when evaluation was done using popular and
advanced tools. Thus majority of sampled funds thus do not seem to have rewarded the investors and hence
could not deliver the return commensurate with the risk.
APPENDICES
Appendix I : Comparative Analysis of Performance of Select Banking Sector Mutual Funds
ICICI Pru
Banking and
financial
services-RP (G)
Sahara banking
and financial
services (G)
UTI
BANKING
SECTOR
FUND (G)
Reliance
banking fund
(G)
S&P CNX 500
S&P BSE
BANKEX
AVERAGE RETURN
0.0008
-0.0419
-0.0522
-0.0458
-0.0182
-0.0359
STANDARD
DEVIATION
S&P CNX
500
BETA
S&P BSE
BANKEX
0.0321
0.0424
0.0358
0.0331
0.0244
0.0360
1
1
1.1549
1.3327
1.2662
1.1641
0.8589
0.9173
0.9872
0.8906
1
1
SHARPE RATIO
-2.4689
-2.8769
-3.6907
-3.8008
-4.0157
-3.2184
Basis of comparison
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SORTINO RATIO
-3.9236
-4.5679
-6.3542
-6.1876
-6.7522
-5.7331
-0.0686
-0.0915
-0.1045
-0.1081
-0.0983
-0.1160
-0.0922
-0.1330
-0.1340
-0.1413
0.0556
N/A
0.0440
N/A
0.0343
-0.1536
-0.0078
-0.0275
N/A
N/A
-0.1721
2.1993
-0.1275
-5.4467
-0.0178
-0.4109
-0.0225
-1.5947
N/A
N/A
-17.4634
-4.7861
-3.9886
-2.4975
N/A
N/A
N/A
N/A
0.1053
0.0021
-0.0245
-0.0060
CNX 500
TREYNOR
S&P BSE
BANKEX
CNX 500
JENSEN
ALPHA
INFORMATION
RATIO
S&P BSE
BANKEX
CNX 500
S&P BSE
BANKEX
S & P RRA RATIO
Basis of comparison
Appendix II : Rankings of the Select Banking Sector Mutual Funds
ICICI Pru Banking
Sahara Banking & UTI Banking
and financial
Financial Services Sector Fund
services-RP (G)
(G)
(G)
Reliance
Banking Fund
(G)
AVERAGE RETURN
STANDARD DEVIATION
SHARPE RATIO
SORTINO RATIO
CNX 500
TREYNOR RATIO
S&P BSE
BANKEX
CNX 500
JENSEN ALPHA
S&P BSE
BANKEX
INFORMATION
CNX 500
RATIO
S&P BSE
BANKEX
I(A)
I(B)
I(A)
I(A)
I(A)
II(D)
IV(D)
II(A)
II(A)
II(A)
IV(D)
III( C)
III(B)
IV(B)
III( C)
III(D)
II( C)
IV(B)
III(B)
IV(C)
I(D)
II(D)
III(D)
IV(D)
I
IV
IV
III
II
I
III
II
I
IV
II
III
IV
III
II
I
S&P RATIO
I
II
IV
III
Figures in the Parenthesis indicate the following:A means that the fund has beaten both the indices (CNX 500 and S&P BSE BANKEX)
B means that the fund has beaten broader index (CNX 500)
C means that the fund has beaten specialized index(S&P BSE BANKEX)
D means that the fund has failed to beat any of the indices.
REFERENCES
[1] D'Silva Stephen and others ( 2012), A Study on Factors influencing Mutual Fund Investment in India,
Financial Analyst Vol. 2, pp.68-74
[2] Goetzmann William and others , ( 2012), Sharpening Sharpe Ratios National Bureau of Economic Research ,
No. 9116
[3] Goyal Dr. K.A. Joshi Vijay (2012), Indian Banking Industry: Challenges And Opportunities, International
Journal of Business Research and Management , Issue :1 (3)
[4] Jain Garima, Shikha & Shahani Rakesh (2013), A Study of Risk and Return Characteristics of Select Equity
Linked Savings Schemes in India: Emerging issues in Indian Financial Markets , Bloomsbury, New Delhi .
[5] Jain Shikha, Aakansha and Shahani Rakesh (2012) ‘Checking the Consistency of the Performance of Select
Large Cap Mutual Fund Schemes across Benchmarks ‘ paper presented at an international conference
‘ Dynamics of innovative practices in management ‘ organized by Maharaja Ranjit Singh college of
professional sciences, Indore ,Dec. 22-24.
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[6] Kale and Uma,(1995) “A Study On The Evaluation Of The Performance Of Mutual Funds In India”, National
Insurance Academy, Pune, India.
[7] Shahani Rakesh (2011) Financial Markets in India: A Research Initiative Anamika Publishers and Distributors
(P) Ltd, Delhi.
[8] Sharma Deepika, Poonam Loothra & Ashish Sharma(2011), Comparative Study of Selected Equity Diversified
Mutual Fund Schemes, International Journal of Computer Science & Management Studies, Vol. 11(1).
[9] Shukla and Singh (1994), “Are CFA Charter Holders Better Equity Fund Managers”, Financial Analysts
Journal 50 (No. 6), pp 68–74
[10] Singh Kumar Binod (2012), A study on investors’ attitude towards mutual funds as an investment option’,
International Journal of Research in Management, Vol 2(2).
[11] Somashekhar TR, (2008) Performance and Regulation of Mutual Funds in India: An Economic Analysis.
Online Unpublished thesis, Institute for Social and Economic Change, Bangalore.
[12] Websites www.rbi.org.in, www.yahoofinance.in, www.amfi.com, www.bseindia.com.,
www.moneycontrol.com www.bseindia.com
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EXPLORING PROBLEMS & CHALLENGES OF WOMEN
ENTREPRENEURS
ABSTRACT
Prof. Satish C. Sharma1
Dr. Urmila Sharma2
Women as entrepreneurs are considered as a special case even though we have lakhs of women who are
well qualified, professionally qualified, competent and capable of becoming entrepreneurs. Even they
have all the capabilities to become CEO’s and Directors of large size corporates. In spite of this, we have
very few women entrepreneurs in our country. Like in many other areas, women entrepreneurship is also
an area where India cannot be compared to the developed countries. The simple equation is related to
social freedom. In developed countries they have equal social treatment to men and women. In western
countries, women entrepreneurs take up any activity of their choice like electronics, engineering, building
construction and like which considered male dominated activities in India. Due to traditional grooming
the Indian women mostly take up enterprises in low cost, low value items like food items (pickles, papads,
eatables), embroidery handicrafts, lunch packages, creches, florist shops etc. Although there are
thousands of cases where women entrepreneurs have shown results and succeeded. But there are very
few in medium and large scale companies. Due to growth of educational level, professional education,
industrialisation, urbanisation and democratic values awareness the tradition bound Indian society is now
undergoing a change and women are coming out more freely to take challenges and face risks of
entrepreneurship.
This paper explores growth, problems and challenges faced by women entrepreneurs. Authors have
collected data through questionnaire and interviews from various categories of women entrepreneurs
from various fields of Mewar Region (Udaipur) in the state of Rajasthan, India. Authors also point out
these entrepreneurs cases based on five categories. Results in this study are very interesting and a message
for upcoming researches to study the women entrepreneurs on all India basis. The findings in this study
tell us many problems in general, specific & personal and pose future challenges to us in this virgin field
of study.
KEYWORDS: Entrepreneurship, Corporate, Urbanisation
INTRODUCTION
Women are treated as less than equal to men in almost all the poor and developing countries. We read a lot
about women’s education, rural women’s problems, female feticide, exploitation of women, representation to
women in electoral bodies etc. However, most of the appeals or cries have remained in theory and practical
implication is utterly lacking. Women entrepreneurship is one such example that we would explore in this
paper.
Half of the world population consists of women but for centuries, women are treated as home makers and to
take care of children. In comparison to men, women’s unemployment level is higher both in educated and less
educated categories. Even where employment is provided it is mostly in lesser paid jobs and agriculture farms.
They are not paid equal salary compared to men nor treated as assets of the organisation they work for. Only
in case of better qualified and professionally qualified categories women are treated equally in teaching jobs,
ITES firms, hospitals, administrative cadres and pilots. This represents a very small percentage of the large
population going through inequality. Nowadays women are employed as policewomen, bus conductors,
driving teachers, receptionist, interior decorators and sales representatives. These positions were earlier
avoided by women. There is a change in socio-cultural values in movement also. These days women go outside
1
Chairman & Managing Director and Professor in Management; MAHARAJA GROUP OF COLLEGES; NH-76,
Airport Road, Debari, Udaipur (Rajasthan)
2
Director EDI @ Maharaja Campus; NH-76, Airport Road, Debari, Udaipur (Rajasthan)
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and abroad on official tours all alone. This is something which was not heard at all tow decades back. This
change is due to growth of ITES sector where engineers are sent abroad frequently for project jobs to be
attended at client’s place.
Like in many other areas, women entrepreneurship is also an area where India cannot be compared to the
developed countries. The simple equation is related to social freedom. In developed countries they have equal
social treatment to men and women. In poor and developing countries there is inequality since centuries. It
may take another decade for developing countries to create an atmosphere of gender based equality.
In western countries women entrepreneurs take up any activity of their choice like electronics, engineering,
building construction and the like which are considered male dominated activities in India. Due to traditional
grooming the Indian women mostly take up enterprises in low cost, low value items like food items (pickles,
papads, eatables) on embroidery, handicrafts, lunch packages, crèches, florist shops, Xerox firms and
managing girls’ hostels. There are thousands of good examples in tiny and small scale sectors where women
have shown entrepreneurship and have succeeded. However there are negligible few women entrepreneurs in
case of medium and large scale companies. This does not mean they lack talent and resources. What they lack
is encouragement from family and conductive environment to take up such higher challenges.
CONCEPT OF WOMEN ENTREPRENEURS
If a business or organisation is started by a women or group of women it comes in the category of women
entrepreneurs. This means initiative is by women. The employees later on could be combination of men and
women. The Government of India has given a different and broader definition to the concept wherein they
have gone by majority level of equity participation and employment of women. The definition is “A women
entrepreneur is defined as an enterprise owned and controlled by women having a minimum financial interest
of 51% of the capital and giving as least 51% of employment generated in the enterprise to women.”
The government definition is of several nature and theoretically sounds like a social justice slogan. It is not
specific about women’s role as entrepreneur. Whereas earlier definition is very specific and highlights the role
of women as initiator, organiser and owner of the enterprise. In short women entrepreneurs are those women
who think of a business enterprise, initiate it, coordinate for production, sales and financial management and
face risk and benefits of running a business organisation.
PROBLEMS OF WOMEN ENTREPRENEURS
The problems can be categorized in three segments in Indian conditions.
(a) Women’s problems in India: Women’s problems in India are of tradition, socio-cultural values,
ethics, motherhood, subordinate to husband and men, physically weak, avoids tension, hard work
areas, avoids vehicle driving and cannot be tough etc. are very common and general remarks made on
women. One or few of them may be applicable to an individual. These factors can only gradually
change with better education, training and development. Added to this our socio-cultural values need
to be equal and till now they are heavily based in favour of men.
(b) Entrepreneurial problems in general:
 Procedural delays, problems and corruption in government offices for various licenses, electricity,
water and shed allotments.
 Raw materials price in creating artificial shortage.
 Competition in low technology items is too high and hence the entrepreneurs have to work at very
low margins and constantly be on lookout for cost reduction.
 Financial problems due to blockage of funds in W.I.P., finished goods and raw materials. Added
to this non receipt of payments from customers is always a cause of worry.
 Indians also face technology obsolescence due to non-adoption or slow adoption to changing
technology.
(c) Specific entrepreneurial problems of women:
 Mobility is problem to women due to the traditional values and most of the cases inability to drive
vehicles. Younger category women feel uncomfortable to deal with men due to extra interest being
shown in them than the work related aspects.
 Family responsibilities like extra attention to husband, children and in-laws take away lots of their
time and energy. In such a situation if they face lack of support from family members it will be
difficult to concentrate on the enterprise.
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



Protected life from childhood has made them “abla” i.e., weak and hence many women are unable
to face risks and troubles that may come up in an organizational working. Risk bearing is one of
the essential requirements of an entrepreneur.
Women are provided less or inadequate education than men partly due to early marriage, partly
due to preference given to son’s higher education. This puts them in a disadvantages position in
entrepreneurial tasks.
Since women cannot run around for marketing, distribution and money collection, middlemen
tend to exploit them in the guise of helping.
In rural sector women have to depend upon men for anything they have to obtain from towns and
cities.
FUTURE OF WOMEN ENTREPRENEURS
Since 1975 there is awakening world over about women entrepreneurs and in a moderate way steps are being
taken to gradually improve the conditions for them. Some of the prominent events and developments towards
this are as follows:
 The decade 1975-85 was declared by UNIDO (United Nations Industrial Development
Organization) as decade for women.
 UNIDO arranged a meeting in Vienne during 6th to 10th February 1978 on the topic “Role of
women in industrialization in developing countries.” In this conference it raised the issues of
constraints such as social, attitudinal and institutional barriers, inadequate employment, training
and flow of information which have caused women to participate lesser in industrial activities.
 UN arranged a global conference as ‘Decade for women” at Copenhagen (Denmark) on 30th June
1980. It passed a resolution aimed at promoting equal opportunities and equal treatment to women
in employment and their access to non-traditional skills.
 In November 1981 India arranged its first “National Conference for Women Entrepreneurs” at
New Delhi.
 The second conference on ‘women Entrepreneurs’ was organized by NAYE (National Alliance of
Young Entrepreneurs) in 1989 at New Delhi. It adopted following declarations:
(a) National and state government should promote women’s participation in social and economic
development programmes. Organise requisite facilities, training and enact legislations to
remove constraints in their way, arrange for transfer of relevant technology and financial
assistance.
(b) Financial and expertise assistance should be given to women entrepreneurs doing exports. For
this UNO, ILO and national Governments must enact suitable measures.
(c) Fairs and exhibition of products manufactured by women entrepreneurs should be widely
displayed and advertised.
(d) UNESCO and the education ministers in different countries should provide necessary
literature, course books and publications for the benefit of students.
 In the Seventh Five Year Plan Government of India gave focus to “Integration of Women in
Development” with suggestions like improvement in training marketing assistance and involving
women in decision making.
Despite all the types of government pronouncements and claims it is amply clear that the real development
activities begin at home. In the formative years of grooming girls should be given equal treatment and
education as boys so that they are groomed to take up future challenges. Education is for knowledge and other
entrepreneurial traits can be development in qualitative grooming in school and college days. They should be
trained for economic independence and decision making rather than treating them with protection measures.
The overall and business environment must develop matured enough to threat men and women equal in trade
and commerce.
Reviewing the Growth of Women Entrepreneurs
Due to the growth of educational level, professional education, industrialisation, urbanisation and democratic
values awareness the traditional bound Indian Society is now undergoing a change and women are coming out
more freely to take challenges and face risk of entrepreneurship. However this does not mean women
entrepreneurship is growing in a big way.
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Women entrepreneurs have been making significant impact in all segments of the economy in Canada, Great
Britain, Germany, Australia and US. In India too, nowdays because of women empowerment, women are
stepping stone into the industries and are taking the place of men. There are many examples like Shahnaz
Husain, Biocon Queen Leiran Mazumdar Shaw, Sulazza Firodia Motwani, Simon Tata and Ekta Kapoor and
few examples from abroad as Oprah Winfrey Many Kay Ash, Madam Walker and Coco Channel.
OBJECTIVE OF STUDY
[1] The basic objective of this study is to understand the growth, problems and challenges faced by women
entrepreneurs of Mewar Region in the state of, Rajasthan, INDIA.
[2] Categorization of women entrepreneurs as case studies based on data gathered through Questionnaires
& Interviews.
METHODOLOGY
Based on questionnaires and interviews, all the case studies are categorized and formulated to analyze the
growth, problems and challenges faced by these women entrepreneurs.
Result Analysis
Based on primary information, four categories has been formulated, selecting four women entrepreneurs each
in the category-1, category-2, category-3 and a syndicate of women entrepreneurs were selected in the
category-4.
Category-1
These entrepreneurs are daughters, daughter-in-laws and wives of rich businessmen who have financial and
other resource backing to take any business risks. Many of them start enterprise in interior decoration,
restaurants, book publishing & magazines, schools, beauty salons, handicrafts for exports and film
distributions. The family supports them in many ways to take care of their responsibilities with lesser efforts
and strains.
Here, we discuss four women entrepreneurs in this category as Case- 1
 Name of woman Entrepreneur – Ms. Nicky Aggarwal
 Age 31 years
 Education – MBA
 Area of Entrepreneurship – School Education
 Designation and Venture’s name – CEO, Delhi Public School, Udaipur (Raj.)
 No. of the years in this field – 6 years
 Reason to start the venture – Father’s venture
 Problems and challenges in the preliminary stage- When, I started my school, it was a new
area to work with the children. I felt alone to take up big decisions because of big risks. There is
a huge staff so that it is difficult to handle all alone at one time. Sometimes managing inspections
from Central Government & State Government become a difficult job. I want to create a learning
environment with qualitative and value based teaching.
Message for young women Entrepreneurs“Work hard…….. Nothing impossible and keep learning through life.”
Case- 2
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Name of woman Entrepreneur – Mrs. Priti Sogani
Age 37 years
Education – B. Com and Diploma in Commerce and Child Education
Area of Entrepreneurship – School Education
Designation and Venture’s name– CEO, Witty International School, Udaipur (Raj.)
No. of the years in this field – 12 years
Reason to start the venture – Father in-laws venture
Problems and challenges in the preliminary stage- I as a woman never thought of
administration job never in my life. It was my in-laws dream to motivate me for this school
education venture. It was a forced decision from my in-laws side and they have lot of acceptation
from me. Sometimes getting work done in government offices is a tough job. It is very difficult to
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manage the small kids due to the safety and security point. Now days I fill there is a high
competition in school education also. It becomes very difficult to maintain high standards with
low fee structure.
Message for young women Entrepreneurs“Do, whatever you think first”
Case- 3
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Name of woman Entrepreneur – Mrs. Asha Paliwal
Age 40 years
Education – M.A. (Social Science)
Area of Entrepreneurship – Beauty Spa
Designation and Venture’s name– Director, Prabhat Spa and Nail Bar, Udaipur (Raj.)
No. of years in this field – 20 years
Reason to start the venture – Father in-laws and husband venture
Problems and challenges in the preliminary stage- It is a challenging job to manage family and
relatives along with my profession. It is very difficult to maintain father in laws name in this
business and maintaining quality. Sometimes, managing time becomes a great problem during
marriage season. There is a shortage of trained staff in the city. People come and learn and go.
There is lot of competition in market also.
Message for young women Entrepreneurs“Devote time and work hard”
Case- 4
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Name of woman Entrepreneur – Dr. Laxmi Jhala
Age 38 years
Education – MBA, Ph. D.
Area of Entrepreneurship – Eye Hospital
Designation and Venture’s name – Director (Administrator), Alakh Nayan Mandir
(Eye
Hospital), Udaipur (Raj.)
 Reason to start the venture – Fathers venture
 Problems and challenges in the in the preliminary stage- There is problem of timing and job
is very hectic. It is difficult to maintain work life balance. It is interesting to interact with people
but difficult job to manage them. There is a problem of post operative maintenance of patients and
also upgrading the hospital from time to time is a big challenge.
Message for young women Entrepreneurs“Have belief on you and go ahead”
Category- 2
These women are from good educational background and experience in their relevant field. They have less
money but their passion forcing them to take up challenging assignments in their life. They are known as
performers. Generally they are from the field of education, medical, art & craft and fashion designing.
Case- 1
 Name of woman Entrepreneur – Dr. Seema Singh
 Age 47 years
 Education – MBA, Ph. D.
 Area of Entrepreneurship – School and College Education
 Designation and Venture’s name – CMD, Ashwarya Education Colleges, Udaipur (Raj.)
 Reason to start the venture – Due to educational background
 Problems and challenges in the in the preliminary stage- I come out from a traditional family
background. In the initial stage I find lot of finance problems. It is difficult to manage qualified
people and professors from different subjects it is a problem dealing with government agencies.
Now days, there is competition in education is very high. I face lot of employee turnover in the
college during whole year. It is problem maintaining discipline in the college.
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Message for young women Entrepreneurs“Objective should be clear, determined and never give up”
Case- 2
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Name of woman Entrepreneur – Dr. Alka Sharma
Age 50 years
Education – MA, B.Ed.
Area of Entrepreneurship – Education (School)
Designation and Venture’s name – CEO, Central Public School, Udaipur (Raj.)
Reason to start the venture – Due to passion for teaching
Problems and challenges in the preliminary stage- In the initial stage, it was difficult to manage
finance for school building. It is difficult to maintain culture in school from time to time. Running
hobbies and sports classes along with teaching is a tough job. There is a safety and security
problem for kids. There is a requirement of quality in teaching but good staff shortage is there.
Building sanskar and character is my prime motive. I fill English speaking is very important in
communication and development.
Message for young women Entrepreneurs“Love your field and grow as much as you can”
Case- 3
 Name of woman Entrepreneur – Dr. SimmiSood
 Age 38 years
 Education – MBBS, MD
 Area of Entrepreneurship – Hospital (IVF)
 Designation and Venture’s name – CEO, Neelkanth Infertility and NF centre (Test Tube Baby
Center), Udaipur (Raj.)
 Reason to start the venture – Due to new field of work
 Problems and challenges in the preliminary stage- There is requirement of huge investment to
establish a test tube baby center. I find lack of support from friends & colleagues. There is lack of
confidence of husband due to new field. In the initial stage people had less faith in this new field.
There is need to monitor for nine months continuously. There is success rate is average. It was
difficult to conveyance rural women in this field. There is a Government policy also, which is very
strict.
Message for young women Entrepreneurs“Have strong will power and strive hard with self confided”
Case- 4
 Name of woman Entrepreneur – Mrs. Indira Prakash
 Age 50 years
 Education – MA (Applied Arts)
 Area of Entrepreneurship – Paintings and sculptures
 Designation and Venture’s name – CEO, Indira Academy Arts, Udaipur (Raj.)
 Reason to start the venture – Due to passion for painting
 Problems and challenges in the preliminary stage- It is a time consuming process. Its market is
not very huge. There is less demand but supply is more. Selling the idea in painting is very
difficult. It is difficult to arrange finance for exhibitions. There is challenge to a establish as a
brand like M.F. Hussain. People rate this profession very low.
Message for young women Entrepreneurs“Have faith in God and work hard”
Category - 3
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These women are known for their circumstances. Most of them are forced to take up assignments, but they
prove to be the fighters in their life. These women can take up any big or small venture from any field of
interest and learn by experience.
Case- 1
 Name of woman Entrepreneur – Mrs. Suraj Sharma
 Age 60 years
 Education – B. Sc. (Home Science)
 Area of Entrepreneurship – LPG Distributorship
 Designation and Venture’s name– CEO, Aravali Gas Service, Udaipur (Raj.)
 Reason to start the venture – Due to Husband’s death
 Problems and challenges in the preliminary stage- I come from traditional and conservative
family. There was lack of support from In-laws as career woman. There was responsibility to up
bring 3 children without any support. I faced opposition in this field as woman. There are
customers problems is a major concern. Safety and securities of depot is also a problem. Managing
all male employees is a challenge.
Message for young women Entrepreneurs“Keep smiling and keep everybody happy, be daring and kind”
Case- 2
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Name of woman Entrepreneur – Mrs. Manju Bordia
Age 40 years
Education – B.A.
Area of Entrepreneurship – Gems & Jewelry
Designation and Venture’s name – Gems & Jewelry, Udaipur (Raj.)
Reason to start the venture – Due to less income of husband
Problems and challenges in the in the preliminary stage- I had family opposition due to trends
changing fast. In-laws had lack of faith on my competing level. There is a problem safety and
security of jewelry. Supervision continuously required. There is a problem of proving original
Gems is tough. This lack of knowledge of English is difficulty in communication to high class
customers. There is lot of prior investment is problem. There is marketing is tough.
Message for young women Entrepreneurs“There is no short cut to success perseverance and fighting spirit lead to success”
Case- 3
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Name of woman Entrepreneur – Mrs. Manju Tiwari
Age 55 years
Education – M.A., B.Ed.
Area of Entrepreneurship – Cable T.V. operations
Designation and Venture’s name – Owner, Cable Network Udaipur (Raj.)
Reason to start the venture – Due to ill health of husband
Problems and challenges in the preliminary stage- There is no regulation policy in the field.
There is a tough competition in the field. Customer satisfaction is tough. It is a male domination
area. There is no fixed time- 24 hrs Business. Maintenance is a big problem. Now a days
competition is high with high grade satellite channels like Tata Sky and Dish, etc. there is a
collection of money is tough job. Providing quality is a problem.
Message for young women Entrepreneurs“Keep patience and dedication to work”
Case- 4
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Name of woman Entrepreneur – Mrs. Aruna Parmar
Age 38 years
Education – B.Com.
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Area of Entrepreneurship – Arts & Crafts
Designation and Venture’s name– CEO, Arunadays Arts and Crafts, Udaipur (Raj.)
Reason to start the venture – Due to poor income of husband
Problems and challenges in the preliminary stage- Getting skilled manpower is a problem.
There was lack of finance in the establishment. There is a problem of timely delivery of articles.
There is a wear and tear in transport. There is a lack of confidence in dealing foreigner clients.
Competition is very high and handiwork takes time. There is output is slow and Marketing is
though.
Message for young women Entrepreneurs“Never and ever give up hope and work sincerely”
Category-4
This kind of women are skill based performers. They require a push from some professional bodies like NGO’s
or companies. They always work as teams to be the best.
Case- A
 Name of woman Entrepreneur – “A syndicate of 20 women”
 Age 38 years
 Education – Skilled and semi skilled
 Area of Entrepreneurship – Textile based handicrafts
 Designation and Venture’s name – “Sadhna” Seva Mandir, Udaipur (Raj.)
 Reason to start the venture – Due to skills promoted by NGO
 Problems and challenges in the preliminary stage- Maintaining quality is a big challenge. There
is a problem to fulfill market requirement in time because of handiwork is slow. It takes time to
learn new designs. Maintaining fabric quality is a problem. There is a problem of timely delivery
of items. It is a challenge establishing brand in market and capturing market internationally.
Message for young women Entrepreneurs“Join hands together and see, how team as family works”
CONCLUSION
Result analysis clearly shows four categories of women entrepreneurs based on their analytical definition. This
study clearly indicates and interprets all four categories based on the growth, problems and challenges. If we
see the category-1, the nature of problems and challenges are different from other categories. It is because of
their background and support of their family members. All four of them are having affluent background and
not having economic and social problems is dealing their enterprises. Where as in category-2, we can clearly
see that despite their very strong educational background and experience, still all four of them facing economic
crunch in managing their business, but still they are able to meet their problems and challenges in a professional
manner. The category-3 is very different from previous two categories. Here, we can see different
circumstances, varied background, lot of compulsion and compromises but still there is a question of survival
of fittest (Marta Kya Na Karta), all four of them had a forced entry in to the field of entrepreneurship. But we
can say that despite all the problem & challenges, they were able to manage effectively.
In the end, category-4 is a bit different type. Here, we see a group of women entrepreneurs based on their skills
as team, managing their show in a well managed manner but under the banner of a very big NGO’s venture.
They have a lion share in the profits by their representation in the governing council. Their problem and
challenges are supported by proper team of professionals.
In the climax, we conclude that women as entrepreneurs in the Mewar Region, Rajasthan are having positive
growth with a lot of problems and facing the major challenges with a bold face proving themselves as the best
entrepreneurs in the women world.
BIBLIOGRAPHY
[1] Entrepreneurship New Venture Creation, By David H. Holt- Prentice – Hall of India Private Limited, New Delhi.
[2] Entrepreneurship Development By C.B. Gupta & N.P. Srinivasan- Sultan Chand & Sons, Educational
Publishers, New Delhi.
[3] Entrepreneurship Development – King Books Publishers, New Delhi.
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[4] Entrepreneurial Development – Principles, Policies and Programmes By P.Saravanavel – Ess Pee Key
Publishing House, Mount Road Madras.
[5] Small – Scale Industries and Entrepreneurship By Vasant Desai – Himalaya Publishing House, Mumbai.
[6] Small Scale Industries and Entrepreneurial Development By C.V.S. Murthy – Himalaya Publishing House,
Bangalore.
[7] Entrepreneurship and Small Business Management By Dr. C.B. Gupta & Dr. S.S. Khanka – Sultan Chand &
Sons, New Delhi.
[8] Dynamics of Entrepreneurial Development and Management By Vasant Desai- Himalaya Publishing House,
Bangalore.
[9] Entrepreneurial Development By S.S. Khanka – Sultan Chand & Sons, New Delhi.
[10] Entrepreneurship By Robert D Hisrich and Michael P. Peters – Tata McGraw Hill Publishing Company Limited,
New Delhi.
[11] Entrepreneurship Theory and Practice By Bird, Barbara J; David J.Hayward and David N. Allen
[12] The Art and Science of Entrepreneurship By Hisrich Robert D.- Cambridge, M.A. Ballinger
Publishing Co.
[13] Global Marketing Management By Warren J. Keegan-Prentice Hall of India Pvt. Ltd., New Delhi.
[14] Principles of Internet Marketing By Ward Hanson –South Western College Publishing, Australia.
[15] Indian Management, Monthly Magazine – A Business Standard Publication, New Delhi
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[17] Economic Times – Daily Magazine
[18] Economic Survey of India 2003-04- Government of India Publication, Ministry of Finance.
[19] Statistical Outline of India 2003-04 Tata Services Limited, Department of Economics and Statistics.
[20] Indian Society by R.V. Badi – Himalaya Publishing House, Bangalore.
[21] Rural Marketing by R.V. Badi & N.V. Badi- Himalaya Publishing House, Bangalore.
[22] Modern Production Management By R.V. Badi & N.V. Badi – Vrinda Publications Private Limited, New Delhi.
[23] Indian Business Environment, R.V. Badi Himalaya Publishing House.
[24] Marketing Management By Philip Kotler- Prentice- Hall of India Private Limited, New Delhi.
[25] The Parable of the Pipeline – by Burke.
[26] Metal Bulletin – Monthly Magazine – Metal Bulletin Publications, London .
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[28] Science Tech Entrepreneur- A Monthly Publication of NSTEDB, Development of Science and Technology,
Government of India.
[29] Family Owned Companies in India by Gita Piramal.
[30] Made in Japan by Akio Morita and Sony – Harpe Collins Business, London.
[31] India’s Family Owned Business – Edited by A.V. Vendpuriswar, ICFAI, Hyderabad.
[32] Business Ethics – R.V. Badi, N.V. Badi, Vrinda Publication Pvt. Ltd., Delhi.
[33] Modern Production Management – R.V.Badi, N.V. Badi, Vrinda Publication Pvt. Ltd., Delhi.
[34] Count Your chickens before they Hatch – Arindam Chowdhary, Vikas Publication.
[35] The Great Indian Dreams – Malaya Chowdhury and Arindam Chowdhary, MecMillan.
[36] Production and Operations Management – Adem and Ebert, PHI.
[37] Business Policy and Strategic Management – Jauch, Gupta and Glucck.
[38] Strategic Planning for Corporate Success- V.S. Ramaswamy & S. Namkumari, MacMillan.
[39] Global Marketing Strategic- Jeannet, Hennessey, All India Publishers & Distributors.
[40] Business Policy and Strategic Management – P. Subbarao, Himalaya Publishing House.
[41] Business Policy and Strategic Management – F. Cherunilam, Himalaya Publishing House.
[42] Industrial Engineering and Management – CNM Reddy, New Age.
[43] Export Marketing – Acharya and Jain, Himalaya Publishing House.
[44] Total Quality Management – Sridhar Bhat, Himalaya Publishing House.
[45] International Business Environment – F. Cherunilam, Himalaya Publishing House.
[46] Business Law- P. Sarvanvel, Himalaya Publishing House.
[47] Working Capital Management and Control- S.B. Mathur, Himalaya Publishing House.
[48] Organisation Development Skills for Competitive Edge- Patnayak and Ravishankar, Himalaya Publishing
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[49] Project Management- Vasant Desai, Himalaya Publishing House.
[50] Manorama, Yearbook 2004.
[51] Success Secrete- Merrill Daugls, Pustak Mahal.
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AN INFLUENCE CREATED BY CHILDREN ON PARENTS’
PURCHASE DECISIONS DUE TO TELEVISION ADVERTISEMENTS
ABSTRACT
Mrs. Pallavi K. Mhatre 1
Children’s role as ‘influencers’ in purchase decisions is gaining prominence in majority of the households.
The advertisements too are soon catching up on this trend by incorporating children across a variety of
products irrespective of their relevance and uses to children. The objectives of this paper are to find out
if children have an influence on the purchase decisions made by the parents, to find out the categories
of products where the influence of children is prevalent and to identify the ad recall, among parents, of
advertisements in five categories of products with children featured in them.
There is a set of three hypotheses which has been tested through this study.
1. Ho: Children do have an influence on the purchase decisions made by the parents.
2. Ho: Children can influence the purchase decisions of only the child centric products.
3. Ho: All brands of child centric and non child centric products tend to have equal chances of brand
recall.
Methodology followed: Fifty mothers whose children fall in the age group of five to twelve years have
been surveyed using the random sampling technique.
Quantitative technique such as the ‘Chi-square’ test is conducted to ensure influences of children on
purchase decisions made by parents.
The findings reflect the fact that children’s opinion is generally considered for child centric products and
not as much for the non child centric products. The recall of advertisements with children featuring in
them is generally favourable.
KEYWORDS: Children’s influence, Pester Power, Television Advertising, Ad recall
INTRODUCTION
As per the American Marketing Association, “Advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor.” Thus advertising through television as a
medium of communication can be referred to as ‘Television Advertising’.
Children in general are more susceptible and tend to get easily influenced by advertisements. Previously the
target audience for children’s products used to be parents, thus, all television advertisements also used to be
catered accordingly. But, nowadays, marketers aim their messages directly to children. Advertisements are
made specifically in such a way that they draw the attention of children. The advertising messages are aimed
directly at the children.
LITERATURE REVIEW
From a very early age, children are specific targets of advertising and promotional messages. Companies invest
in child-directed marketing because children are seen as representing three valuable markets: buyer’s market
(i.e. they may make purchase decisions and spend their own pocket money), influence market (i.e. without
spending their own money, children may request that their parents make specific purchases) and future market
(i.e. if they like a brand during childhood, then they may purchase that particular brand when they are old
enough to spend their own money)
1
Asst. Prof. MET Institute of Management
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Be it in the form of the lead character in the advertisement or as their audience, companies have envisaged a
definite role for children-as influencers or brand advocates. With the susceptible psyches, and the strong
emotional connect that kids share with parents or adults, they are being counted upon to act as push factors in
most homes and pester power is being seen in a whole new light. So even though a product may be adult
centric, grabbing the child’s attention has become critical for marketers, irrespective of what they are selling.
The simplest technique has been to create situations that children can relate to.
Piaget’s theory of cognitive development states that children are able to perceive and handle information from
the environment as a result of their age and cognitive development (Ginsburg and Opper 1988). Piaget’s theory
of cognitive development proposes four main stages of cognitive development; Sensorimotor (birth to two
years), Preoperational (two to seven years), Concrete operational (seven to eleven years) and formal
operational (eleven through adulthood). Thus, in sync with the model the marketer should be able to create
situations which the children of the respective age groups will be able to relate to.
The rise of both parents working has simply sharpened the guilt, especially among working mothers.
Television advertisers too seem to be fast catching on the impact of this guilt on children’s habits. Cadburys,
who has premiered this category as far as advertising in India is concerned, had the first of its kind
advertisement in the category, wherein a mother returned from her workplace and opened the gate to her child
who ran instantly towards her. She immediately embraced him and handed over a Cadburys chocolate to him
out of guilt with the hope to compensate. For Cadburys, the aim has been to base their content on the natural
feelings of the parent and the child.
Guilt among parents can play a role in spending decisions as time-pressed parents substitute material goods
for time spent with their kids.
Parents today are willing to buy more for their kids because trends such as smaller family size, dual incomes
and postponing children until later in life mean that families have a better disposable income or demographic
dividend. Thus, today’s kids have more autonomy and decision making power within the family than in
previous generations, so it follows that today’s kids are more vocal about what they want their parents to buy,
they have the ability to pester their parents.
Pester power refers to The power children have, by repeated nagging, or influencing their parents to buy
advertised or fashionable items. (www.phrases.org.uk)
Pestering or nagging can be divided into two categories-“persistence” and “importance”. Persistence nagging
(a plea which is repeated over and over again) is not as effective as the more sophisticated “importance
nagging”. This latter method appeals to parents’ desire to provide the best for their children, and plays in any
guilt they may have about not having enough time for their kids. Marketing to children especially via television
advertisements is all about creating pester power, because advertisers know what a powerful force it can be.
Barbara A. Martino an Advertising Executive from the U.S has promptly concluded as, “We’re relying on the
kid to pester the mom to buy the product, rather than going straight to the mom”
Parents, in their dual roles as purchase agents and consumer educators, are the primary, mediating force
between their children and the purchase of the products their children want and ask for. The interaction of the
parent and the child seems to proceed in two directions: the child requests of the parent, and the parent responds
to the child.
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There are various other factors which tend to affect purchase decisions of parents influenced by children such
as the time of the year, value orientations of parent and children, Brand Recall among others.(Sunil Mehrotra,
Sandra Torges, 1977).
A mother’s attitude towards television and advertising have some bearing upon the degree to which she
(mother) will yield to purchase influence attempts made by her child. The mother who watches a lot of
television experiences a greater number of influence attempts by her child and the likelihood that she will
respond positively is greater. Furthermore, mothers who have more positive attitudes towards advertising agree
more often to the requests of their children. Conversely, the more restrictions parents place on their children’s
television viewing, the less receptive they are to influence attempts of their children. (Ward and Wackman,
1972a)
RESEARCH REVIEW
Objectives of the Study:
1. To find out if children have an influence on the purchase decisions made by the parents.
2. To find out the categories of products where the influence of children is prevalent.
3. To identify the ad recall, among parents, of advertisements in five categories of products with
children featured in them.
Hypothesis of the study:
There is a set of three hypotheses which has been tested through this study.

Ho: Children do have an influence on the purchase decisions made by the parents.
H1: Children do not have an influence on the purchase decisions made by the parents.

Ho: Children can influence the purchase decisions of only the child centric products.
H1: Children can influence the purchase decisions of the non-child centric products as well.

Ho: All brands of child centric and non child centric products tend to have equal chances of brand
recall.
H1: All brands of child centric and non child centric products do not tend to have equal chances of
brand recall.
Sample Size: Fifty Parents.
Sample Design: It was ensured that the respondent was a parent of at least one child in the age group of
three to fourteen years.
The ‘Simple Random Sampling’ technique was utilised.
Secondary sources of information such as World Wide Web, Books, Journals, Magazines and Newspaper
articles were also relied upon.
The study is constrained due to time, personnel and monetary resources. The Study is restricted to few
regions in Mumbai only. The sample size if extended would offer lesser scope of errors.
The study is limited to advertising on Television for children and by children of the age group of three to
fourteen years.
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ANALYSIS OF THE SURVEY
The analysis of the survey is as following. A graphical analysis supported by statistical analysis has been
followed.
Child's opinion considered before
purchasing following products
50
Chocolates
40
Health Drinks
30
Kids Clothing
20
Mobile Service
Providers
10
0
Detergent
Yes
No
In view of the analysis above, it is seen that the child’s opinion is considered almost always for the purchase
of products meant for their consumption, that is, chocolates (82 percent), health drinks (72 percent) and kids
clothing (86 percent). On the other hand, the child’s suggestion is not regarded for the purchase of Mobile
Service providers (8 percent) and Detergent (10 percent).
By applying the chi-square test, the above can be reinstated.
Child's opinion is taken while purchase
1
Product
Yes
No
Total
Sample
Proportion
p
Chocolates
41
9
50
0.82
Health Drinks
36
14
50
0.72
Kids Clothing
43
7
50
0.86
Mobile Service
Provider
4
46
50
0.92
Detergents
5
45
50
0.9
To test
Ho:
More than 90% of the parents take their
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child's opinion while buying Chocolates.
i.e. P ≥ 0.90
against
H1:
P ≤ 90%
z 
p  P0
P0 Q
n

0
The test statistic is
-1.8856181
Table value of z at 5% level of significance is -1.96
We Reject H0 if the calculated value is greater than the table value
Ho is Rejected
LESS than 90% of the parents take their child's opinion while buying Chocolates.
2
To test
Ho:
child's opinion while buying Health Drinks.
against
H1:
P ≤ 90%
z 
p  P0
P0 Q
n

0
-4.2426407
Ho is accepted.
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More than 90% of the parents do take their child's opinion while buying
Health Drinks.
3
To test
Ho:
child's opinion while buying Kid's Clothing.
against
H1:
P ≤ 90%
p  P0
z 
P0 Q
n

0
-0.942809
Ho is Rejected
LESS than 90% of the parents take their child's opinion while buying Kid's
Clothing.
More than 90% of the parents do not
4
To test
Ho:
take their child's opinion while opting for
Mobile service providers.
against
H1:
i.e. P ≥ 0.90
P ≤ 90%
z 
p  P0
P0 Q
n

0
0.47140452
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Ho is rejected.
LESS than 90% of the parents do not take their child's opinion while opting for
Mobile service providers.
5
To test
Ho:
More than 90% of the parents do not take
their child's opinion while shopping for
Detergents. i.e. P ≥ 0.90
against
H1:
P ≤ 90%
z 
p  P0
P0 Q
n

0
0
Ho is Rejected
MORE than 90% of the parents do not take their child's opinion while
shopping for Detergents.
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Recall of ads featuring children alongside the
product categories
45
40
35
30
25
20
15
10
5
0
Yes
No
Chocolates
Health
Drinks
Kids
Clothing
Mobile
Service
Providers
Detergent
Parents surveyed, easily recall the ads in the categories of chocolates (75 percent), health drinks (85 percent),
kids clothing (75 percent) and detergent (73 percent). Whereas for mobile service providers the recall is
comparatively low at 55 percent.
With the help of Chi-square test and single-test for proportion we can deduce the preferences of people for
different brands in the product categories.
TABLE NO. 5.3 PREFERENCE FOR CHOCOLATE BRANDS
O
Brand
Observed
Pooled
Expected
Pooled
i
 E
E i
Cadbury
33
6.25
114.49
Nestle
7
6.25
0.09
Melody
2
6.25
2.89
Firklover
1
Mango Bite
1
6.25
Bubaloo
1
6.25
Alpenlibe
1
6.25
Others
4
Total N =
50
5
5
25
16
6.25
12.5
0.81
50
37.5
134.28
6.25
i
2
No. of Brands n=8
N
Expected is
n
i.e. 50/8
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To Test Ho: All brands are equally likely. i.e. All brands occur with the same relative frequency p = 1/8.
Against H1: Not Ho.
k
2  
i 1
Oi
 Ei 
134.28.
Ei
2
No. of effective classes k=5
Table value of 2 at 5% level of Significance is 9.49.
Conclusion: Reject Ho if 2 > 9.49
All Brands are Not equally likely. i.e. All brands do not occur with the same relative frequency p = 1/8.
Now to check if the more than 50% of the population prefers the brand Cadburys.
To test Ho: P ≤ 50%
Against H1: P ≥ 50%
z 
p  P0
P0 Q
n
0

2.26.
Table value of z at 5% level of significance is 1.96.
We Reject H0 if the calculated value is greater than the table value.
Ho is accepted.
Less than 50% of the population prefer Cadburys.
TABLE NO. 5.4 : PREFERENCE FOR HEALTH DRINK BRANDS
Pooled
Bournvita
19
6.25
26.01
Horlicks
13
6.25
7.29
Complan
6
6.25
0.01
Boost
3
Protinex
1
6.25
Gatorade
1
6.25
Milo
1
6.25
Others
6
6.25
0.01
Total N =
50
50
47.76
6.25
Pooled
 E
E i
Observed
6
Expected
O
Brand
25
i
i
2
14.44
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No Of Brands
n
N
8
n
Expected
Against H1: Not Ho.
k
 
2
Oi
i 1
 Ei 
Ei
2
66.65
Table value of 2 at 5% level of Significance is 9.49.
Now to check if the more than 50% of the population prefers the brand Cadburys.
z 
p  P0
P0 Q
n

-1.70
0
Ho is accepted.
Less than 50% of the population prefer Bournvita.
TABLE NO. 5.5 PREFERENCE FOR KIDS’ CLOTHING BRANDS
O
i
 E
E i
i
2
Brand
Observed
Pooled
Expected
Pooled
G&J
21
21
7.142857
7.14285714
26.88285714
Lilliput
5
5
7.142857
7.14285714
0.642857143
barbie
2
5
7.142857
28.5714286
19.44642857
Benetton
1
7.142857
Cliff
1
7.142857
Littleones
1
7.142857
Others
19
7.14285714
19.68285714
19
7.142857
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50
G&J
21
21
No Of Brands
n
7
Expected
N
7.142857
50
66.655
7.14285714
26.88285714
n
Against H1: Not Ho.
k
 
2
Oi
i 1
 Ei 
Ei
2
66.65
Table value of 2 at 5% level of Significance is 7.81
Now to check if the more than 50% of the population prefers the brand G & J.
z 
p  P0
P0 Q
n

0
-1.13
Ho is accepted.
Less than 50% of the population prefer G & J.
TABLE NO. 5.6 PREFERENCE FOR MOBILE SERVICE PROVIDER BRANDS
Pooled
i
2
Observed
Vodafone
24
8.333333
29.45333333
Airtel
6
8.333333
0.653333333
Reliance
3
8.333333
Pooled
 E
Ei
Brand
6
Expected
O i
25
14.44
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BPL
2
8.333333
Tata Indicom
1
8.333333
Others
14
8.333333
3.853333333
50
50
48.4
No. of Brands n=6
Expected
N
n
Against H1: Not Ho.
k
2  
Oi
i 1
 Ei 
Ei
2
134.28
Now to check if the more than 50% of the population prefers the brand Vodafone.
z 
p  P0
P0 Q
n
0

-0.28.
Ho is accepted.
Less than 50% of the population prefer Vodafone.
TABLE NO. 5.7 PREFERENCE FOR DETERGENT BRAND
O
 E
E i
Brand
Observed
Pooled
Expected
Pooled
Surf Excel
36
36
7.142857
7.14285714
116.5828571
Tide
4
6
7.142857
21.4285714
11.10857143
i
i
2
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Nirma
1
7.142857
Rin
1
7.142857
Ariel
4
Wheel
2
7.142857
Others
2
7.142857
8
7.142857
21.4285714
8.415238095
No. of Brands n=7
Expected
N
n
Against H1: Not Ho.
k
2  
Oi
i 1
 Ei 
136.11
Ei
2
Now to check if the more than 50% of the population prefers the brand
Surf Excel.
z 
p  P0
P0 Q
n

3.11.
0
Ho is rejected. More than 50% of the population prefer Surf Excel.
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Influencing factors on the children
35
Ads of the products
30
25
Brand Name
20
Attractive Package
15
10
Freebies with the
product
5
All of the above
0
1
We have seen the categories where children influence the parents’ decision. But what influences the children
is also crucial for the study. About 33 percent of the children get influenced by Advertisements, 10 percent by
the brand name, 20 percent by the attractive package, 27 percent by the freebies attached to the product and
10 percent by all the factors related to communication of the products.
CONCLUSIONS
To Marketers
Children get influenced the most by Advertisements. Thus, it is recommended to the marketer that for planning
of communication tools, allocation of the budget should be most for Advertising, followed by sales promotion
and then packaging and labelling. The sales promotion tool utilised should necessarily be child centric, like an
attractive gift or toy enviable by the peer.
The guilt feeling or the need to compensate is felt by approximately one-third of the parents. This is a very
positive sign for the marketers, but it has to be tackled or encashed by them with ethical decisions.
Marketers can tap the schools to encourage trial of the products, where the child is not influenced by the
parent’s decision.
Children’s opinion is almost always considered for the purchase of chocolates, health Drinks and Kids
Clothing, thus marketers can aim their communication targeting to children. However, in the case of Mobile
Service Providers and Detergent in case the marketers aim to feature children in the advertisements, it may
prove redundant unless executed strategically. That is, it should be borne in mind that for detergent, though
the buyer is the mother, the child plays the role of users and at times even an influencer.
Similarly, for the Mobile Service Providers, children will play the role of influencers to the extent the usage
of mobile phones affects them. That is, parents (especially working parents) would want to feel secure that
they are easily connected (networked) to their children in times of need, or easily accessible to the children.
Advertisements should focus on this concept and emotion.
To Parents
The first and foremost rule is to rate one’s need for a particular product or feature. The tendency is to overlook
a very crucial feature for an appealing one. It is essential that the need be judged before jumping in for that
“trendy” item, especially under the influence and coerce of the child.
Understand the psychology of selling and advertising. The things that are depicted in advertisements are not
gospel truths. Many advertisements make false promises, are highly exaggerated and give incomplete
descriptions of products.
Before buying a particular product, find out the credibility of the choices of brands offered. Everyone believes
and says (through advertisements) that they are the best. If all of them are the bests, then go for the better than
the best one, and most important of all, involve your child in doing so.
Marketers should be ethically bound especially while targeting children and parents should remain more aware.
These are some of the vital ingredients for the health of the children, the pillars for tomorrow’s economy.
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FUTURE SCOPE OF THE STUDY
Child’s presence in an advertisement is understood to have its charm on parents, without doubt. But it can be
analysed in the future, if such charm materialises into a purchase by parents. Further it can be analysed if there
is any correlation between an ad recall attractively featuring children and its influence on the purchase of the
respective brands.
BIBLIOGRAPHY
[1] Dewan Neha & Thomson Lisa Mary, (2010 April 18) Children and Advertising: When you buy the kids
decide, Economic Times
[2] Ginsburg, Herebert P. and Sylvia Opper (1988). Piaget’s Theory of Intellectual Development. Englewood
Cliffs, NJ: Prentice-Hall.
[3] McAlister, Anna R,(2010), Children and Advertising: Parents’ Role, Pediatrics for parents.
[4] Mehrotra Sunil, Torges Sandra (1977) ‘Determinants of Children’s influence on mother’s buying behaviour,
Advances in Consumer Research, Volume 4.
[5] Nargundkar Rajendra (2003), Marketing Research Text and Cases, 2nd Edition, Tata McGraw-Hill Publishing
Company Limited
[6] Prof. Soni Swati, Prof. Upadhaya Makarand, (2007), ‘Pester Power effect of Advertising’ International
Marketing Conference, IIMK.
[7] Scott Ward and Daniel B. Wackman, (1972a) “Children’s purchase influence attempts and parental yielding”,
Journal of Consumer Research.
[8] Sutherland Anne, Thompson Beth, (2001), Kidfluence, Mc Graw Hill Ryerson Limited.
[9] (1990), Effects of Advertisements on children, Advances in Consumer Research Volume 17.
[10] (2005) Seminar on ‘Television as a medium of advertising and its impact on children’ at Narsee Monjee
College of Commerce & Economics.
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SCHOOL ACCREDITATION AND ASSESSMENT IN CENTRAL
INDIA: AN ANALYSIS OF AWARENESS OF SCHOOL PRINCIPAL
ABSTRACT
Prashant Thote1
Accreditation and assessment are two very important processes that are carried out in order to maintain
the quality of engineering education. Literature searches on accreditation and quality assurance of
engineering education show that there is no uniform system of the assessment of engineering
programmes worldwide. Although several accrediting bodies have been formed and are functioning
across the world in order to accredit and recognise engineering courses, there is no common agreement
or criteria that can be utilised in the accreditation and assessment of school education. The rapid growth
of education globally require the proper maintenance of academic quality in educational institutions in
order to withstand competition in the global market. Quality is a complex issue in education and should
be seen in a holistic manner. Despite rapid development of educational evaluation and increased
emphasis on quality issues in almost every strand of life, there is no simple view of a high quality education
system. Good education is closely interconnected with cultural, political, social and economical contexts.
Each education system that wishes to establish a quality assurance system within its structures, has to
start this work by analysing various aspects of excellence in education and defining its own idea of quality.
In the Present study investigator attempt to find out the significance difference of various groups of sex,
student residents, type and nature of School in awareness on School Accreditation and Assessment in
Central India among Principals Secondary students in Central India . The investigator himself developed
a questionnaire on identifying awareness on School Accreditation and Assessment. The sample consists
of 48 Principals of School students from Govt., aided and Self-finance Schools in Central India. The
Stratified Random sampling technique is used for collecting data. In this study the Researcher adopted
the Normative Survey Method. The data were analyzed using “t” test. The major finding of study reveals
that the school Principals in Central have average level of awareness on School Accreditation and
Assessment.
KEYWORDS: School ,Accreditation , Assessment , Principals and Quality Education
INTRODUCTION
Education is the most powerful weapon which you can use to change the world."
Nelson Mandela
Education plays an important role in the progress of an individual’s mind and country. People are made aware
of what is going on in the world and can understand these issues and take necessary measures, if they are
educated. Education tames the astray mind, nurturing its capabilities the same way, training builds a clever
dog. Webster defines education as the process of educating or teaching (now that's really useful, isn't it?)
‘Educate’ is further defined as “to develop the knowledge, skill, or character of...” Thus, from these definitions,
we might assume that the purpose of education is to develop the knowledge, skill, or character of students.
Education being one of the most important factors responsible to shape the personality of an individual has
manifold functions. It is the potent source of material and human development. Quality is the most cherished
goal in human endeavour and especially in the field of education.
The right to education has been well recognised by the United Nations General Assembly (UNGA) under
Article 26 of Universal Declaration of Human Rights (UNDHR) as:
I. Everyone has the right to education. Education shall be free, at least in elementary and fundamental stages
….
II. Education shall be directed to the full development of human personality and to the strengthening of respect
of human rights and fundamental freedoms.
1
Principal, Gyanodaya Vidya Mandir,Narsingarh
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III. Parents have a right to choose the kind of education that shall be given to their children
Education has now become a global concern. The world conference on ‘Education For All’ held in March,
1990 in Jomitien, Thailand adopted a declaration calling upon all member states and international agencies to
take effective steps for achieving Elementary Education for All by the 2000. India was one of the participants
to the declaration. The ultimate goal affirmed by the world declaration on ‘Education For All’ it to meet the
basic needs of all children, youth, and adults.
The aims of education reflect the current needs and aspirations of a society as well as its lasting values, and
the immediate concerns of a community as well as broad human ideals. Locating the term quality in educational
discourse is now a universal concern today. “Quality is somewhat problematic: like beauty, it lies in the eyes
– or rather the mind of the beholder” (Cliff. et al. (1987). Quality has been extensively defined by Dewney et
al. (1994) as, “meeting, exceeding and delighting customer’s needs and expectations with the recognition that
these needs and desires will change over time.”
The belief that quality goes with privilege is clearly irreconcilable with vision of participatory democracy that
India upholds and practises in the political sphere. Its practice in the sphere of education demands that the
education available to all children in different regions and sections of society has a comparable quality. J.P.
Naik describes equality, quality and quantity as the elusive triangle’ of Indian education. Dealing with this
metaphorical triangle requires are deeper theoretical understanding of quality in education than has been what
available in schools today. United Nations educational, Scientific and Cultural Organization’s (UNESCO)
recently published global monitoring report which discusses systematic standards as the appropriate context
of the quality debate (see Global Monitoring Report 2006 – Literacy for Life, UNESCO, 2006). From this point
of view, the child’s performance needs to be treated as an indicator of systematic quality.
The quality dimension also needs to be examined from the point of view of the experiences designed for the
child in terms of knowledge and skills. Assumption about the nature of knowledge and the child’s own nature
shapes the school ethos and the approaches used by those who prepare the syllabi and textbooks and by teachers
as well. The representation of knowledge in text books and other materials need to be viewed from the larger
perspective of the challenges facing humanity and the nation today. No subject in the school curriculum can
stay aloof from these larger concerns, and therefore the selection of knowledge proposed to be included in
each subject area requires careful examination in terms of socio-economic and cultural conditions and goals.
Quality in education includes a concern for quality of life in all its dimensions.
For the parents and students, quality education means, “improving the quality of education invariably means
raising the levels of academic performance usually measured in the test scores in the various subjects which
form part of school curriculum. With reference to education quality is a relative term and hard to define and
even more difficult to measure. That is thy educationists, scholars, educational policy makers and
administrators do not come to same conclusion while discussing what makes good quality education or a
qualitative education. However, parental aspirations for education are belied by endemic poverty and unequal
social relations, and by lack of adequate provision of schooling of equitable quality.
Accreditation and assessment are two very important processes that are carried out in order to maintain the
quality of engineering education. Literature searches on accreditation and quality assurance of engineering
education show that there is no uniform system of the assessment of engineering programmes worldwide.
Although several accrediting bodies have been formed and are functioning across the world in order to accredit
and recognise engineering courses, there is no common agreement or criteria that can be utilized in the
accreditation and assessment of school education. The rapid growth of education globally require the proper
maintenance of academic quality in educational institutions in order to withstand competition in the global
market.
Quality is a complex issue in education and should be seen in a holistic manner. Despite rapid development of
educational evaluation and increased emphasis on quality issues in almost every strand of life, there is no
simple view of a high quality education system. Good education is closely interconnected with cultural,
political, social and economical contexts. Each education system that wishes to establish a quality assurance
system within its structures, has to start this work by analysing various aspects of excellence in education and
defining its own idea of quality.
The concept of quality assurance is very common in industrial production, where the quality of output products
is tested or measured. The concept of quality measurement was introduced in education in the late 1980s when
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the phenomenal growth of education began and the structure of the education sector became more complex.
Due to the internationalization process of higher education and the introduction of free trade economy, the
quality of higher education has become mandatory for education providers in order to withstand the
competitiveness of the world market.
When so much experimentation is going on at the school level and the recommendations of all the past
commissions are being reviewed to substantiate this step, when the Human Resource Ministry, National
Council of Educational Research and Training, Central Board of Secondary Education and so on are working
on this concept rigorously, trying to make it better and better, it seemed proper to the investigators of this study
to take up this topic to find out the perception of the Senior Secondary School Principals towards this
Assessment and Accreditation of schools.
The present study is aim to study the awareness of Senior Secondary School Principals their awareness with
respect to Age ,Gender , Type of School , Administrative Experience their. It also occurred to the investigators
to compare the awareness of Senior Secondary School Principals which is very important for the success of
continuous and comprehensive evaluation in future.
Figure 1: The block diagram of an educational cycle
Accreditation and assessment is very important in order to maintain the quality of engineering education in
any nation, which, in turn, can directly affect the status and quality of engineering graduates, and hence the
technical workforce. The benefits of the educational assessment and accreditation process for Senior
Secondary School can be divided into two parts; namely academic (student) and administrative (institutional).
The need for quality assurance arises from the following:
(a) Assessment and Accreditation provide an incentive for self-study and self improvement.
(b) It reassures external stakeholders such as employers, professional bodies and the general public, about
the legitimate quality of the assessed and accredited CBSE schools as well as the relative quality status
of the institution as compared to other similar institutions.
(c) Third party assessment and accreditation and the resultant certification, vouch for the competence of
the institution assessed, to provide education of a high standard.
(d) Assessment and accreditation would enhance the responsiveness of communities of learners.
(e) Accreditation would ensure that institutions prepare the students for citizenship responsibilities,
successful careers, acquisition of life skills and lifelong learning.
(f) On the whole, it would help institutions in capacity building.
The academic benefits for students may be listed as follows:
 Design and implement advanced curricula, courses and laboratory works;
 Measure learning outcomes of students and identify strengths and weaknesses;
 Foster industrial interactions and the placement of students;
 Identify and develop the professional developments of students;
 Design quality educational programmes, etc.
The administrative benefits for institutions can include the following:
 Improve classroom and laboratory facilities;
 Develop and implement faculty resources;
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


Identify reliable communication tools and facilities;
Identify and attract funding resources and agencies;
Strengthen national and international networking, etc.
OBJECTIVES OF ACCREDITATION






To assess and endorse that an institution/school meets established standards
To assess the effectiveness of an institution in creating the most innovative, relevant, socially
conscious eco-oriented learning environment for all its staff and students.
To involve the faculty comprehensively in institutional evaluation and planning for enhancing
effectiveness of a school.
To establish criteria for professional certification and upgrading of standards.
To encourage continuous self assessment, accountability and autonomy in innovation in school
education.
To encourage continuous professional development and capacity building of teachers
Fig: Domains of accreditation o and assessment of School
ADVANTAGE OF ACCREDITATION
1.
2.
3.
4.
He school is able to maintain a level of quality and help to identify its area of improvement.
The students are able to assess themselves against acceptable set of norms.
The parents are assured of set of standards of teaching and learning.
The process benefits all stockholders within the schools system- the Management body principals,
teachers, students parents and community.
5. It facilitates institutions recognizing their strength and weakness and gives detailed guidelines and
recommendations for capacity building.
6. It empowers Schools policy makers to refine their formulations and allocations of resources.
The Central Board of Secondary Education (CBSE) has introduced assessment of schools through standardized
instruments and process of internal (self evaluation) and external assessment (peer review) which will
encourage sustained qualitative enhancement. This assessment will be used to accredit schools to provide
quality benchmarks in the concept, establishment and running of effective systems within an institution in
accordance with changing socio-economic and cultural contexts and new research. It has also been made
mandatory that the schools get accredited once in every three years. When so much experimentation is going
on at the school level and the recommendations of all the past commissions are being reviewed to substantiate
this step, when the Human Resource Ministry, Nation al Council of Educational Research and Training,
Central Board of Secondary Education and so on are working on this concept rigorously, trying to make it
better and better, it seemed proper to the investigators of this study to take up this topic to find out the
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awareness of the students studying in secondary classes of CBSE towards this Continuous and Comprehensive
Evaluation System, to study the difference in their perception with respect to their achievement and also with
respect to their gender. It also occurred to the investigators to compare the perception of students and teachers
which is very important for the success of continuous and comprehensive evaluation in future.
OBJECTIVES
The following objectives are preferred to conduct this study
(a) To identify the key concepts of School Assessment and Accreditation from various sources
(b) To find out the level of awareness on Assessment and Accreditation among secondary Principals of
Central India .
(c) To find out the significant difference if any between the different groups of demographic variables
such as – sex, student residence, location of school, types and nature of school in awareness on
Assessment and Accreditation.
(d) To give suggestions to improve the level of awareness on School Assessment and Accreditation among
secondary school Principals.
HYPOTHESES OF THE PRESENT STUDY
(a) The level of awareness on School Assessment and Accreditation among secondary school Principals
is very low.
(b) There is a significant difference between the different groups of sex, student residence, and location
of school, types and nature of school in awareness on School Assessment and Accreditation among
secondary school Principals in Central India.
(c) Secondary School Principal who are residing in rural are have more awareness on School Assessment
and Accreditation
(d) Male secondary schools Principals in Central India have more awareness on School Assessment and
Accreditation.
(e) Principals having more administrative experience have more awareness on School Assessment and
Accreditation.
(f) Principals having higher professional qualification have more awareness on School Assessment and
Accreditation.
(g) Principals having higher Educational qualification have more awareness on School Assessment and
Accreditation
Methodology
The investigator preferred normative survey method to collect data from the secondary school Principals of
Central India.
Sample
The investigator employed simple random sampling technique in order to collect data from the Secondary
School Principal. The study was conducted on a total sample of 42 senior secondary school Principals of
Central India.
Research tools
The investigator himself developed a questionnaire on identifying awareness on School assessment and
Accreditation among secondary school Principals
Statistical techniques used
The data had been subjected to: 1. Descriptive analysis 2. Differential analysis.
Table 1: Distribution of overall percentage scores of secondary school Principals on awareness in School
Assessment and Accreditation
S.No
Category
Level of awareness
1
Overall
72%
The above table reveals the overall percentage scores of Principals awareness on School assessment and
Accreditation in secondary school Principals in Central India. It is found that the Secondary School Principals
have highest level of awareness on School Assessment and Accreditation (i.e. 72%).
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Table 2: Significance of mean difference between the Male and Female in connection with the awareness on School
Assessment and Accreditation in secondary school Principals in Central India .
Gender
N
X
SD
tLevel
of Decision
Calculated
Significance
Male
Female
dmf 46
100
100
36.72
37.8
6.05
5.96
1.33
Not significant
The above table reveals the significant mean difference between Male school Principal and Female School
Principal on awareness in School Assessment and Accreditation. It is found that the calculated t value of 1.33
is lesser than the theoretical value of 1.97 at 5% level with 46 Degrees of freedom. There is no significant
mean difference between Male and Female School Principal awareness on School Assessment and
Accreditation in secondary schools in Central India and therefore the research hypothesis is not accepted.
Table 3: Significance of mean difference between rural and urban school Principal in connection with the awareness on
School Assessment and Accreditation in secondary school Principals in Central India
S No
Gender
N
Mean
SD
t value
Level of
Decision
significance
1
Rural
24
33.76
4.79
0.97
Not
Rejected
Significant
2
Urban
24
34.47
12.48
Df=46
The above table reveals the significant mean difference between school residing in rural and urban area on
awareness in School Assessment and Accreditation . It is found that the calculated “t” value of 0.97 is lesser
than the theoretical value of 1.97 at 5% level with 46 Degrees of freedom. There is no significant mean
difference between school principals residing in rural and urban area and the awareness on School Assessment
and Accreditation in secondary schools in Central India and therefore the research hypothesis is not accepted.
Table 5: Significance of mean difference between the Principals in Government school and Private school in connection
with the awareness on School Assessment and Accreditation in Senior secondary schools located in Central India .
S No
Gender
N
Mean
SD
t value
Level of
Decision
significance
1
Government 24
3
4.79
0.97
Not
Rejected
Significant
2
Private
24
12.48
Df=46
The above table reveals the significant mean difference between government school and private school on
awareness in School Assessment and Accreditation . It is found that the calculated”t‟ value of 1.256 is lesser
than the theoretical value of 1.97 at 5% level with 238 Degrees of freedom. There is no significant mean
difference between principals in government school and private school awareness on School Assessment and
Accreditation in higher secondary schools located in Central India and therefore the research hypothesis is
not accepted.
Table 7: Significance of mean difference between Principals in co-education and girls school in connection with the
awareness on Assessment and Accreditation in higher secondary schools located in Central India
S No
Gender
N
Mean
SD
t value
Level of
Decision
significance
1
Co-Educational
24
3
4.79
0.97
Not
Rejected
Significant
2
Girls
24
12.48
The above table reveals the significant mean difference between co-education school and girls school on
awareness in Biodiversity. It is found that the calculated„t‟ value of 1.28 is lesser than the theoretical value of
1.97 at 5% level with 238 Degrees of freedom. There is no significant mean difference between Principals in
Co-education school and Girls school and their awareness on Assessment and Accreditation in Central India
and therefore the research hypothesis is not accepted.
FINDINGS
[1] The School Principals who are studying in Senior secondary schools of Central India have highest
level awareness on Assessment and Accreditation of school (i.e. 72%).
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[2] Male and Female School Principals ‟ awareness on Assessment and Accreditation of schools in Senior
secondary schools located in Central India area are found to be same.
[3] The Principals residing in rural and urban areas have awareness on awareness on Assessment and
Accreditation of schools in senior secondary schools located in Central India area that is found to
be same.
[4] The Government school and Private school Principals ‟ awareness on awareness on Assessment and
Accreditation of schools in senior secondary schools located in Central India are found to be same.
[5] Co-education school and girls’ school Principals ‟ awareness on awareness on Assessment and
Accreditation of schools in senior secondary schools located in Central India are found to be same.
REFERENCE
[1] Central of Board of Secondary Education (2013) “Quality Assessment and Accreditation Manual”.
[2] Arun S. Patil Zenon J. Pudlowski Important Issues of the Accreditation and Quality Assurance and a Strategy
in the Development of an Accreditation Framework for Engineering Courses Global J. of Engng. Educ., Vol.9,
No.1 Published in Australia
[3] Jagadeesh, R., (2000). Improvement of quality of higher education in engineering sciences with emphasis on
international aspects. The Indian J. of Tech. Educ., 23, 3, 43-47
[4] National Board of Accreditation (NBA), http://www.nba-aicte.ernet.in
[5] Prashant Thote Assessment of Senior Secondary School in Central Indian Paper accepted for Publication and
Presentation in 5th Intentional Conference at Prestige Institute of Management Gwalior . ( 10-12 Jan 2014)
[6] Prashant Thote The Role of School Principals On School Efficacy: An Analysis of Teachers Opinion in Central
India in International Conference on “Reinventing management Strategy –The Design for the future ”
( November 30, 2013 )
[7] Prashant Thote (2013) An Analysis of Attitude of Secondary School Teachers Towards FDP of CCE Research
Direction Vol 03 No 03 PP 78-83
[8] Viswanadhan, K.G., Rao, N.J. and Mukhopadhyay, C. (2004), A prediction of the accreditation status of
engineering programmes in India: a logistic regression approach. World Trans. On Engng. and Technology
Educ., 3, 2, 195-198
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EFFECT OF WORKPLACE RELATED PROCESS VARIABLES ON
PSYCHOLOGICAL CONTRACT FULFILLMENT AND QUALITY OF
PATIENT CARE DELIVERED BY MEDICAL PROFESSIONALS IN
PRIVATE AND PUBLIC HOSPITALS
ABSTRACT
Dr.Sneha Singh Munda
1
Purpose- The study examined differences in the psychological contract fulfillment and quality of patient
care provided by medical professionals in private and public hospitals as a function of perceived levels
of workplace related process factors. It was expected that the relationship between these factors was
more likely to be positive with psychological contract fulfillment and as well as with quality of patient
care provided by medical professionals in the private hospitals as compared to the public hospital.
Sample and Method -The study was conducted on a sample of 253 medical professionals from a large
public hospital (N=127) and a large private hospital (N=126) in north India using questionnaire method.
Finding- Mean, SD and stepwise regression analysis of the data revealed that the among the workplace
process factors, ‘role efficacy’ of medical professionals emerged as a positive predictor of quality of
patient care in both the hospitals equally whereas psychological contract fulfillment of medical
professionals positively predicted quality of patient care in both the hospitals.
Implication and Value-The study has important implications for Indian hospitals in the private and
public sector which are currently facing problems of providing quality of care to their patients due to
staff perceptions of inadequacy of their workplace environments and job conditions. Data also showed
that hr management strategies of west to manage psychological contract fulfillment of Indian employees
is not always applicable and suitable for Indian context.
KEYWORDS: Quality of patient care, Psychological contract fulfillment, Role efficacy, Participation,
Innovative practices
INTRODUCTION
Hospital is the place where patients come with the ray of hope that they will get relief from their pain and
diseases and get the proper care with the coordinated and collaborated inter-professional team of doctors,
nurses, technicians etc. This fact is also accepted by medical professionals that they are responsible for the life
and death of their patients so they fight day and night like a knight to protect their patients and provide them
quality of care with least chances of side effect or any error.
Without such back bone support system of multi talented work force hospital management is become paralyzed
in providing quality of patient care to patients, which was the main motto of the ancient doctors like Sushrata
and Charaka in India. The word care itself stands for: courtesy, attentiveness, responsiveness, and empathy.
Therefore Quality assurance aspect becomes a top priority in hospitals in recent years. So number of private
and public hospitals are constantly innovating and improving the technical/clinical and service aspects like
never before in order to provide world-class quality and care but public hospitals are still lacking behind.
Quality of patient care is a critical factor for increasing the efficiency of any hospital. The quality and safety
of care provided by healthcare professionals depend on many aspects.
The most important are: A culture that fosters the importance of human resource management, because until
and unless the human resources are properly managed they will not able to perform and provide quality of
care. So they expect management to provide them a healthy, affective and supportive work environment to
handle work pressure. A healthy work environment encompasses more than absence of malfunction. Like a
1
Dept. of Psychology, Banaras Hindu University, Varanasi
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healthy person who is active and contributing to the world, a healthy work environment garners employee
engagement and energy toward collectively producing desired results.
A healthy work environment not only establishes a desirable workplace, but also provides the infrastructure to
positively impact the effectiveness of the work itself. But in contrast a authoritarian and dominating
environment affect the quality of care provided by medical professionals and enhance tendency of turnover
intentions in them.
That’s why hospital management need to use such hr practices that enhance organizational process factors
like , role efficacy, participation in decision making, and innovative practices etc. that fulfill the psychological
contract of medical professionals and help them to use their own capabilities to the maximum, and to ensure
continuous development of the organization and quality of care delivered by them.
Quality of patient care
Quality of patient care is a critical factor for increasing the efficiency of any hospital. The word ‘care’ itself
stands for: courtesy, attentiveness, responsiveness, and empathy.
According to Donabedian (2003) quality is simply an attribute that the technical and interpersonal aspects of
medical care manifest in varying degrees. He provided criteria for what constitutes “good care”, using the
framework of structure (related to physical environment and facilities), process (related to interaction with
service personnel) and outcome (the result of the interaction). Donabedian developed seven attributes of health
care quality:
efficacy, (the best result or benchmark for a particular diagnosis)
effectiveness, (ordinary medicine, or the industry average)
efficiency, (a measure of cost, or the least costly of two identically effective treatments)
optimality, (cost-benefit evaluation, or the point at which further resources do not add benefit)
acceptability, (adaptation of care to the wishes, expectations and values of patients and their families)
legitimacy, (the community’s view of care) and
equity, (the principle by which one determines what is just or fair in the distribution of care and its benefits
among the members of a population.)
The quality of care provided by a healthcare professional depend on many factors. One of the most important
are: A culture that fosters the importance of human resource management, because until and unless the human
resources are properly managed they will not able to perform and provide quality of care.
Organizational processes variables
To determine the quality of the work climate in health care organizations. Innovative human resource
management practices and procedures that facilitate communication, role efficacy and participation are factors
important for both quality of patient care and retention of staff as both these categories are at the organizational
level of analysis and neither set of variables is reducible to the behavior of individuals.
Innovative practices: Thompson (1965) “the generation, acceptance and implementation of new ideas,
process, products, or services”. One of the single most important challenges for health systems is to establish
new models of service delivery which increase capacity and provide rapid, safe, effective and affordable health
care, and do so sustainably, within health workforce and resource constraints.
One of the single most important challenges for health systems, then, is to establish new models of service
delivery which increase capacity and provide rapid, safe, effective and affordable health care, and do so
sustainably, within health workforce and resource constraints (Kohn, Corrigan & Donaldson, 2000). A key
strategy being advanced to meet this challenge is increased use of information and communication
technologies (ICT) (Deloittes, 2008). Studies have shown that the use of ICT in the health sector is capable of
increasing efficiency, reducing errors, supporting more team-based care, improving integration of best practice
into routine care, enabling consumers to engage more actively in their care, and producing more efficient
services through changes in professional roles and responsibilities (Chaudhry, Wang, Wu, Maglione, Mojica,
Roth, Morton & Shekelle, 2006).
Medical professionals also perceive that use of innovative technologies redistribute their workload but when
these new technologies create complications they fell less control over their job or reduce role efficacy which
increase stress in them.
Role efficacy
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Role efficacy means the potential effectiveness of an individual occupying a particular position in an
organization. People with high role efficacy seem to experience less role stress and work-related tension
( Pareek’s 1993) . They rely on their own strengths to cope with problems, use more focused behavior, interact
with people and the environment, persist in solving problems (mostly by themselves), and show commitment
to their work and provide high quality of services. Role efficacy may be major influence on organizational
commitment among members. Based on Pareek’s (1993) definition of role efficacy it can be stated that role
efficacy refers to the potential efficiency of employees’ performance and their ability to deal effectively with
job challenges, role conflict, role ambiguity and role overload. Role efficacy increase the “sense of control”
control refers to the perception by the individual employees that their action will lead to the expected outcome.
Role expectations may be considered a major part of psychological contract fulfillment. When role
expectations as implied in the psychological contract are met then organization commitment will be increased.
Turnley and Feldman (2000) reported that unmet expectations and job dissatisfaction partially mediate the
relationship between psychological contract violations and employee behaviours such as intention to quit,
neglect of in-role job duties and citizenship behaviours. These findings suggest that in order to survive major
upheavals caused by environmental changes, it is necessary for organizations, specially healthcare
organizations, to understand the conditions which are capable of promoting perception of psychological
contract fulfillment among their members.
Psychological contract fulfilment
The psychological contract should be recognized as a powerful determiner of behavior in organizations. It
points out the importance of accurately communicating role expectations. The concept of the psychological
contract was first used by Argyris (1960) and has been developed further by the works of many researchers
like Schein (1978; 1980), and most recently by Rousseau (2000). The psychological contract is a major variable
which generates works effectiveness, commitment, loyalty, and enthusiasm for the organization and its
goals .When employees realize that their organization has failed to give them what was promised, they
experience feelings of anger, mistrust and betrayal (Raja, Johns & Ntalianis, 2004). These feelings can cause
negative outcomes like increased turnover intentions (Turnley & Feldman, 2000) as well as decrement in
quality of services provided by them.
Psychological contracts are a subjective phenomenon not only individually but also culturally. Individuals in
different cultures learn different set of values, and this perceptual nature of psychological contract may be
possibly influenced by cultural differences (Thomas & Au, 2003).
Participation in decision makingEmployee participation is part of a process of empowerment in the workplace. Employee participation is the
process whereby employees are involved in decision making processes, rather than simply acting on orders
Employee participation is in part a response to the quality movement within organizations. Individual
employees are encouraged to take responsibility for quality in terms of carrying out activities, which meet the
requirements of their customers. Employee participation is also part of the move towards human resource
development in modern organizations. Employees are trusted to make decisions for themselves and the
organization. This is a key motivational tool. Employee participation is also referred to as employee
involvement (EI). A modern forward-looking business does not keep its employees in the dark about vital
decisions affecting them. It trusts them and involves them in decision making at all levels. “Command and
control” is no longer an adequate model.
Employee involvement in decision making serves to create a sense of belonging among the workers as well as
a congenial environment in which both the management and the workers voluntarily contribute to healthy
industrial relations (Noah, 2008). In order to increase the workers commitment and humanize the workplace
with the intention of improving work performance and good citizenship behaviour, managers need to permit a
high degree of employee involvement (Cohen, 1997). Thus, the involvement of workers in decision making is
considered as a tool for inducing motivation in the workers leading to positive work attitude and high
productivity (Noah, 2009). Participative work climate enhance psychological contract fulfilment. Cotton
(1998) reported that participation in work decisions are associated with enhanced job satisfaction. Sashkin
(1976) identifies outcomes of employees’ involvement or participation in decision making: Quality
Improvement, increase in employees’ commitment and acceptance of decisions through a sense of
“ownership”. They therefore logically precede the social- psychological variables that describe the experience
of working in a particular place and are indicative of the relationship between participation in decision making,
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sense of involvement in the organization, and the sense of autonomy and control. So participation in workplace
decisions played vital role in determining quality of services provided by employees.
METHODHYPOTHESES :
[1] Regarding the differences in the process factors in the private and public hospital it was
hypothesized that:
(a) It is expected that among the organizational process variables, the private hospital is likely to have
higher levels of role efficacy, participation, and innovative practices as compared to the public
hospital.
(b) It is expected that the level of psychological contract fulfillment for medical professionals is likely
to be higher in the private hospital as compared to the public hospital.
(c) It is expected that the level of quality of patient care delivered by medical professionals is likely
to be higher in the private hospital as compared to the public hospital.
[2] It was broadly hypothesized that the process factors in the organizational climate would be
positively related with the quality of patient care in private as compared to public hospitals.
(a) It is expected that the process factors are more likely to be positively related with delivery of
quality of patient care by medical professionals working in the private hospitals as compared to
the public hospitals.
(b) It is expected that the organizational process factors are more likely to be positively related with
psychological contract fulfillment of medical professionals in the private hospital as compared to
the public hospital.
(c) Psychological contract fulfilment of medical professionals is more likely to be positively related
with the delivery of quality of patient care in the private hospitals as compared to the government
hospitals.
Sample and Method -The study was conducted on a sample of 253 medical professionals from a large
public hospital (N=127) in north India and a large private hospital (N=126) in jharkhand using questionnaire
method in English and Hindi.
MeasuresScales for the following variables were used in the present study:
Role efficacy: The scale consists of 10 items adapted from Pareek’s scale for measuring organizational role
efficacy. The Cronbach’s alpha for this scale was 0.72 for measuring level of self efficacy in hospitals.
Participation: The participative climate scale by Gupta (2006) was modified to suit the requirements of the
sample in hospital for measuring the extent of their participation in the decision-making process in hospitals.
The scale consist of 10 items measuring 3 dimensions of participation that is F1, F2 and F3. 4 items assessing
levels of F1, 4 items assessing F2 and 2 items assessing F3. F1 participation in workplace items, F2
participation in decision making items and F3 Participation in problem solving.
Innovative practices: The innovative practices scale was used by Lewis and Beck (1977). Containing three
items, to measure the extent in which innovative practices used in hospitals.
Perceived fulfillment of the psychological contract The psychological contract fulfillment scale (Bose &
Agarwal, 2003), constructed on the basis of measures used by Turnley and Feldman (1998) consisted of 11
items, which measured the extent to which members’ expectations are ‘met’ by the organization through its
human resource practices. The reliability coefficient of the scale is .75.
Quality of patient care: This scale was based on the dimensions of quality of patient care proposed by Kelley
and Hurst (2006). Initially there were 11 items, each item was related to a specific health care service quality
condition.
RESULT
The present study examined the effect of workplace process factors of two different sectors (Private & Public)
and difference in their perception and the effect of such differences on psychological contract fulfillment and
quality of patient care delivered by medical professional of private and public sector hospitals . Data were
statistically analyzed for examining the hypothesized patterns of relationships between the variables
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understudy. Mean, SD, and stepwise regression was conducted to examine the hypothesized nature of the
relationship between the predictor variables, psychological contract fulfillment and quality of patient care
delivered by medical professionals in the private and public hospitals.
Table 1a. Showing significance of the differences between the means of process variables in private and
public hospitals (N= 253).
Predictors
Process Variables
Role efficacy
Participation
F1 “ Workplace”
F2 “Decision Making”
F3 “Problem solving”
F=Factor, *p<.05; **p<.01
Private Hospital (N=126)
Mean
SD
Public Hospital (N=127)
Mean
SD
t value
33.05
8.25
43.70
5.69
11.50**
11.73
4.60
11.04
3.20
2.29
3.27
14.81
4.21
16.74
4.35
1.94
2.04
6.42**
1.45
16.59**
11.15
3.95
14.08
1.88
7.54**
Table 1a. Revealed that among the organizational process variables, public hospitals were reported to be
significantly higher on role efficacy (t=11.50, p<0.01), dimension of participation that is ‘Participation in
workplace’ (t=6.42, p<0.01), and Participation in Problem solving’ (t=16.59, p<0.01), Innovative practices
(t=7.54, p<0.01).
Table 1b. Showing significance of the differences between the means of mediator variable private and public
hospitals (N= 253).
Predictors
Public Hospital (N=127) t value
Mean
SD
Mean
SD
Mediator Variable
Psychological contract fulfillment
41.17
7.07
46.73
4.78
7.32**
F=Factor, *p<.05; **p<.01
Table 1b. Revealed that the Psychological contract fulfilment, was reported to be significantly higher
(t=7.32, p<0.01) in the public hospital.
Table 1c. Showing significance of the differences between the means of outcome variables in private and public
hospitals (N= 253).
Predictors
Private Hospital
Public Hospital (N=127) t value
(N=126)
Mean
SD
Mean
SD
Outcome
Quality of patient care
37.34
6.59
49.50
6.58
14.68**
F=Factor, *p<.05; **p<.01
Table 1c. Revealed that among the organizational outcome variable, public hospitals were reported to be
significantly higher on quality of patient care (t=14.68, p<0.01).
Summary- Findings did not support Hypothesis 1(a,b,c) In general, the public hospitals were perceived
more favourably by the participants with regard to the organizational process factors.
Public hospital reported to be significantly higher on organizational process variables such as role efficacy,
dimensions of participation, that is “participation in work place”, “participation in Problem solving”,
Innovative practices from private hospitals.
Result showed that perception of “psychological contract fulfilment” was reported to be significantly higher
by medical professionals of public hospitals which was unexpected.
Outcome variable “quality of patient care” reported by medical professionals of public hospital was
significantly higher than by their counterparts in private hospitals.
Stepwise Regression Analysis
Table 2a. Stepwise regression of Quality of patient care with process variables in private and public hospitals.
Predictors
R
R2
R2 Change
%
Beta
t ratio
.115
.115
12%
.339
4.01**
Role efficacy .339
.472
.223
.108
11%
.328
4.12**
Innovative
practices
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R2 Change
%
Predictors
R
R2
Beta
t ratio
Role efficacy
.527
.278
.278
29%
.52
6.93**
F2 “decision
making”
F3 “Problem
solving”
Innovative
practices
F1 “work
place”
.649
.422
.144
14%
.38
5.55**
.676
.457
.035
3%
.19
2.83**
.697
.486
.029
2%
-.17
-2.63**
.712
.507
.021
2%
.20
2.25*
*p<.05; **<.01
In private hospital (Table 2a) result showed that among the process variables, “role efficacy” predicted 12%
variance in quality of patient care with positive beta value of .33, whereas “innovative practises” positively
predicted 11% variance with positive beta of .32.
In public hospital result showed that,” role efficacy” predicted 29% variance with positive beta of .52.
Participation (F2) “participation in decision making” predicted 14% variance positively with beta of .38,
Participation (F3) “participation in problem solving” predicted 3 % variance with positive beta of .19,
Participation (F1) “participation in workplace” predicted 2 % variance with positive beta value of .20, and,
innovative practices negatively predicted 2% variance with beta -.17.
Table 2b. Step wise regression of Psychological Contract Fulfilment with process variables in private and public
hospitals.
Predictors
Participation F2 “decision making”
Role efficacy
R
.384
.469
.523
R2
.148
.220
.274
R2 Change
.148
.072
.054
%
15%
7%
5%
Beta
-.384
.275
.246
t ratio
-4.63**
3.36**
3.01**
Predictors
Participation
F1 “work place”
F2 “decision making”
F3 “Problem solving”
R
.481
R2
.231
R2 Change
.231
%
23%
Beta
-.481
t ratio
-6.13**
.552
.612
.653
.305
.375
.427
.073
.070
.052
7%
7%
5%
-.287
.312
.242
-3.61**
3.71**
3.32**
*p<.05; **<.01
In private hospital (Table 2b) result showed that in the private hospital among the process variables,
Participation(F2) “participation in decision making” predicted 15 % variance in psychological contract
fulfilment with negative beta value of -.38, whereas “innovative practises” positively predicted 7% variance
with beta of .27, role efficacy predicted 5% variance with positive beta of .24.
In public hospital result showed that innovative practices negatively predicted 23% variance with beta -.48,
Participation (F1) “participation in workplace” predicted 7 % variance with negative beta value of -.28,
Participation (F2) “participation in decision making” predicted 7% variance positively with beta of .31 and
Participation (F3) “participation in problem solving” predicted 5% variance with positive beta of .24
Table 2c. Stepwise regression analysis of psychological contract fulfilment of medical professionals with quality
of patient care in private and public hospitals.
Predictors
Psychological contract
fulfilment
R
.333
R2
.111
R2 Change
.111
%
11%
Beta
.333
t ratio
3.92**
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Predictors
Psychological contract
fulfilment
*p<.05; **<.01
R
.224
R2
.050
R2 Change
.050
%
5%
Beta
.224
t ratio
2.57*
In private hospital (Table 2c) result showed that “psychological contract fulfilment” predicted 11% variance
in outcome, quality of patient care with positive beta value of .33.
In public hospital result showed that “psychological contract fulfilment” predicted 5% variance in quality of
patient care with positive beta value of .22.
Results did not supported Hypothesis 2 (a) - the organizational process factors are more positively related
with quality of patient care in the public hospital.
Results did not supported Hypothesis 2 (b) fully- the organizational process factors are equally positively
predicted the psychological contract fulfilment in the private as well as in public hospitals .
Innovative practices and role efficacy were positively predicted psychological contract fulfillment in the
private hospital.
Participation (F2) “participation in decision making”, Participation (F3) “participation in problem solving”,
positively predicted psychological contract fulfilment in public hospital.
Results supported Hypothesis 2 (c) - the psychological contract fulfilment is highly positively predicted the
quality of patient care in the private hospital, but it played important role in prediction of quality of patient
care in public hospital also. So it is a important variable for both the hospitals.
DISCUSSION
An attempt has been made in this study to measure the differences in the perception of workplace related
process factors and psychological contract fulfilment in two group private and public hospitals, and the effect
of different perceptions of medical professionals on psychological contract fulfillment and related outcome
that is “quality of patient care” with the help of standardized tools. So we hypothesized that workplace related
process variables would be positively related with psychological contract fulfillment and quality of patient
care delivered by medical professions in both the healthcare organizations. So that high psychological contract
fulfilment of medical professionals result in delivery of “quality of patient care” by them in both the
organizations and this trend would be more prominent in public hospital. So results are eye opener, although
the private and public sector organizations differed substantially in the quality of their work environment, a
similarity in the trends of relationships have emerged from the study. The data showed that the doctors of
private and public hospitals showed high “quality of patient care when they feel more effective in their role
because, role efficacy provides the perception that the role provides the individual an opportunity to grow and
develop. These findings highlights the significance of role efficacy in psychological contract fulfillment of
medical professionals in both organizations.
Role efficacy enhanced the feeling of “sense of control”. Control refers to the perception by the employees
that his action results in expected outcomes so this perception help to fulfil their psychological contract. Which
is a concrete reason for the delivery of quality of patient care by medical professionals of both the hospitals.
The roles that people play should provide an opportunity to utilize these skills and strengths to ensure a high
level of role efficacy. When their role provides them with greater opportunity for using their special strengths,
their role efficacy is likely to be higher. One factor that makes roles in the public sector or in civil services
more effective is the opportunity to influence a large section of the community. Health care providers have
more influence because they treat people who are sick and are therefore, often highly respected by the
community. So this is the main reason behind the positive relationship between role efficacy of medical
professionals and quality of patient care delivered by them in both private and public hospitals. When people
performing a particular role feel that what they do is likely to be of value to a larger group, their efficacy is
likely to be high. One major motivating factor for health personnel, especially those working at the grass roots
level is the feeling that their contribution to people they deal with, is likely to help larger sections of the
community and society.
Likewise, the data indicated that among other workplace process factors use of “innovative practices”, showed
negative relationship with psychological contract fulfilment in public hospital and positive relationship in
private hospital, which is strange . Despite this fact, that use of “innovative practices” help to increase quality
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of patient care it act as a double edged sword. Which need a careful handling because sometime organizational
changes, which are implemented without proper planning perceived as a threat for power, position and status
of the senior employees. That’s why the process of organizational change in which individuals adapt according
to environmental change not always perceived positively. It may include the acceptance of new techniques,
new managemen strategy or policy (Burke and Litwin 2008).Since organizational change leads to the
redistribution of benefits and the adjustment of relationships between different positions (Crosby 1996),
employee resistance can be expected. Few studies, however, have used qualitative research to examine
employee dissatisfaction that arises because of organizational change. The inevitability of organizational
change in the highly competitive modern business world is having an increasing impact on employees, and
dramatic changes can lead to strong resistance among an organization’s employees. The overall safety and
effectiveness of technology in healthcare ultimately depend on its human users, ideally working in close
concert with properly designed and installed electronic systems. Any form of technology may adversely affect
the quality and safety of care if it is designed or implemented improperly. Not only must the technology or
device be designed to be safe, it must also be operated safely within a safe workflow process. So before
implementation of innovative practices such as innovative techniques, technology, innovative hr practices, all
need proper planning and training. If not carefully planned and integrated into workflow processes, new technology systems can create new work, complicate workflow, or slow the speed at which clinicians carry out
clinical documentation and ordering processes. Learning to use new technologies takes time and attention,
sometimes placing strain on already demanding schedules. The resulting change to clinical practices and
workflows can trigger uncertainty, resentment, or other emotions that can affect the worker’s ability to carry
out complex physical and cognitive tasks, these constraints may lead to much confusion or frustration and
breach of psychological contract fulfilment. the data indicated that among other workplace process factors
participation factor “F2” that is “ participation in decision making” showed negative relationship with
psychological contract fulfilment in private hospital and positive relationship in public hospital, which is an
eye opener result, but reason behind this is that, it is a common practice that all the decisions are finalized
among the high officials in an organization with autocratic style of management and here all the information
are kept by the senior managers. In this style of management high officials have absolute power over their
subordinates and there are many chances for disarrangements and disturbances which might be valid. So to
avoid disputes sometime management practices “ Pseudo-PDM” which means pseudo participation in decision
making. This form of participation implies a directive management covered with a mask of participation.
Directive managers pretending to be participative cannot earn the employees’ trust; rather, organisation
members are fully conscious of the disparity between the official democracy and actual dictatorship (Sagie &
Aycan, 2003). Which becomes the main negative predictor of the psychological contract fulfilment.
This is only the one side of the coin, but on the other side of the coin same predictor shows the positive effect
on the psychological contract fulfilment, when employees are adequately informed about matters concerning
them and are afforded the opportunity to make decisions relevant to their work, then there will be benefits for
both the organisation and the individual (Shadur, 1999). When employees participate in decision makingorganisational flexibility, product quality, and productivity may improve. It contributes to greater trust and a
sense of control on the part of the employees (Chang & Lorenzi, 1983). Which ultimately results in
psychological contract fulfilment of employees. When employees are given the opportunities of contributing
their ideas and suggestions in decision making, increased firms’ performance may result in quality
improvement, better information flow- and use- can clarify tasks goals, and bring about qualitatively better
decisions.
Final and ultimate result of the study is that when psychological contract of medical professional fulfilled they
delivered quality of patient care in both the hospitals, which was a great finding. Because one of the single
most important challenges for health system, is to establish new models of service delivery which increase
capacity and provide rapid, safe, effective affordable and quality of patient care. Which can be achieved by
management by providing medical professionals, a healthy affective and supportive work environment to
handle work pressure. A healthy work environment encompasses more than absence of malfunction. Like a
healthy person who is active and contributing to the world, a healthy work environment garners employee
engagement and energy toward collectively producing desired results. A healthy work environment not only
establishes a desirable workplace, but also provides the infrastructure to positively impact the effectiveness of
the work itself. A healthy work environment is one that is invigorating, robust, flourishing, and able to flexibly
adapt to a constantly changing set of circumstances.
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Why hr practices failed to fulfil the psychological contract of medical professionals which directly effect the
quality of patient care, which is unaffordable by any healthcare organization because healthcare organizations
are one of the organization which whole and sole depend on its human resources. So human resources are one
of the most valuable assets for the organizations without which they are handicapped. This is more true in the
context of healthcare organizations because this organization is basically based on the talent, dedication and
hard work of its employees in the same time it is also true that there is huge diversity found in this organization,
different caliber of knowledge and skills collaborate at the workplace, work in teams and achieve the goal of
delivering quality of patient care. Such a climate is necessary to help the employees to use their own
capabilities to the maximum, and to ensure continuous development of the organization. That’s why hospital
management need to use such hr practices that fulfil the psychological contract of Indian medical professionals
and not the hr practices that are imported from western countries.
CONCLUSION
Medical professionals are the most important resource of an hospital. Without their support hospital
management cannot provide high quality of patient care. Hence hospital managers should spend maximum
effort to learn more about the impact of organizational process factors on human behaviour , and how to
enhance their positive effects on psychological contract fulfilment and related outcome that is quality of patient
care . So result indicated that effort to increase role efficacy, participative workplace environment and use of
innovative practices are strategies that would also enable management to increase psychological contract
which in turn increased the quality of patient care in both private and public hospitals.
LIMITATIONS
The findings from the present study are insufficient in their applicability to the issues related with the quality
of patient care as the assessment of this performance dimension was done only by the professionals working
in the sample hospitals and not by indoor patients too since they would be availing the treatment facilities from
the hospital in the case of chronic or complicated ailments in future too.
Future research in this direction should also adopt a total quality management approach for examining the
factors that influence quality of patient care and their effects on job satisfaction of medical professionals
working in these hospitals.
REFERENCES
[1] Argyris, C. (1960). Understanding organizational behavior. Homewood, Illinois: Dorsey Press.
[2] Bose S. & Agarwal, M (2003). Dimensions of the work environment in private and public sector organisations
and perceived fulfilment of the psychological contract. Indian Journal of Industrial Relations. 4, 460-479.
[3] Chaudhry, B., Wang, J., Wu, S., Maglione, M., Mojica, W., Roth, E., Morton, S., & Shekelle, P. (2006):
Systematic review: Impact of health information technology on quality, efficiency, and costs of medical care.
Ann Intern Med, 144, 742-752
[4] Chang, G. S., & Lorenzi, P. (1983). The Effects of Participative versus Assigned Goal Setting on Intrinsic
Motivation. Journal of Management, 9, 55-64.
[5] Cohen, S., Chang, L., & Ledford, G. (1997). A Hierarchical Construct of Self management Leadership and its
Relationship to Quality of Work Life and Perceived Work Group Effectiveness. Personnel Psychology, 50, 275308.
[6] Cotton, J. L. (1998). Employee participation: diverse forms and different outcomes, 13, 8-22.
[7] Deloittes, (2006). Queensland Health: Health Strategy, 1-79.
[8] Donabedian, A. (1990). The Seven Pillars of Quality; Archive of Pathol. Lab Med, 114, 1115-8.
[9] Gupta, S. (2006). Effects of perceived organizational climate on perceptions of performance appraisal systems
and organizational commitment. Unpublished Ph. D dissertation.
[10] Kelly, E. & Hurst, J. (2006). Health Care Quality indicators project: Conceptual Framework Paper,
DIRECTORATE FOR EMPLOYMENT, LABOUR AND SOCIAL AFFAIRS/HEA/WD/HWP, 3.
[11] Kohn, L. T., Corrigan, J. M, & Donaldson, M.S. eds. (2000). To Err Is Human: Building a Safer Health System.
Washington, DC: Institute of Medicine, National Academy Press.
[12] Lewis-Beck, M. (1977), “Influence equality and organizational innovation in a third-world nation: an additivenonadditive model, American Journal of Political Science, 21, 1-11.
[13] Noah, Y. (2008). A Study of Worker Participation in Management Decision Making Within Selected
Establishments in Lagos, Nigeria. Journal of Social Science, 17, 31-39.
[14] Parker, C.P., Baltes, B.B., Young, S.A., Huff, J.W., Altmann, R.A., Lacost, H.A. & Roberts, J.E. (2003).
Relationship between psychological climate perceptions and work outcomes: a meta-analytic review., Journal
of Organizational Behavior, 24, p. 389-416.
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[15] , U., Johns, G., & Ntalianis, F. (2004). The Impact of Personality on Psychological Contracts. Academy of
Management Journal, 47, 350-367.
[16] Rousseau, (2000). Psychological Contracts in Employment: Cross-national Perspectives. Thousand Oaks, CA:
Sage, 1-28.
[17] Sagie, A., & Aycan, Z. (2003). A Cross- Cultural Analysis of Participative Decision-Making in Organizations.
Humam Relations, 56, 453-473.
[18] Sashkin, M. (1976). Changing toward participative management approaches: A model and methods. Academy
of Management Review, July, 75-86.
[19] Schein, E. H. (1980). Organizational psychology, Englewood Cliffs: Prentice Hall.
[20] Shadur, M. A. (1999). The Relationship between Organizational Climate and Employee Perceptions of
Involvement: The Importance of support. Group and Organization Management, 24, 479-503.
[21] Thomas, D. C., Au, (2003). Cultural variations and the psychological contract. Journal of Organizational
Behavior, 24, 451-462.
[22] Thompson, J. (1967). Organizations in Action: Social Science Bases of Administration Theory, New York:
McGraw-Hill.
[23] Turnley, W. H., & Feldman, D. C. (2000). Re-examining the effects of psychological contract violation:
unmatched expectations and job dissatisfaction as mediators. Journal of organizational behaviour, 21, 25-42.
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TALENT MANAGEMENT
ABSTRACT
Vignesh Vasudevan 1
Talent management is a process that emerged in the 1990”s and continues to be adopted as more
companies come to realize that their employees talents and skill drive their business success...The plans
and processes include the managing the talents of the employees, retaining the skilled employees and so
on. Basically. It is the process of recruiting, managing, assessing, developing the typical strategies and
Identifying star performances at various levels where financial values are more. It’s a recruiter s vital tool
as it goes a long way to identifying the talent that is directed towards the successful working of an
organization. They hold a key role and are of very great use in an organization as it depicts and gives a
clear cut idea of the efficient working system of an organization. They have yielded great results through
these years and oblate its significance is on the rise. This strategy also enables to imbibe leadership skills
in every individual of the organization. On the upside this strategy has been labeled only as a success
though there are some areas of improvement and there it has to be clearly understood that failures in
talent management are mainly due to the mismatch between the supplies and demand and not due to the
failure in the concept. The goal of talent management is the much more general, but the most important
task of time management is to help the organization to achieve its overall objectives.
KEYWORDS: Organization, Skills, Talent
INTRODUCTION:
HRM is a process of bringing people and organizations together so that the goals of each are met. It tries to
secure the best from people by winning their wholehearted cooperation.
DEFINITION OF HRM:
HRM may be defined “As the art of procuring, Developing and maintaining competent workforce to achieve
the goals of an organization in an effective and efficient manner.
MEANING OF TALENT:
Ability, aptitude, bent, capacity, endowment, faculty, flair, forte, genius, gift, knack.
Unusual natural ability to do something well that can be developed by training.
Person or people with an exceptional ability
OBJECTIVE OF HRM:





To help the organization reach its goal.
To employ the skills and abilities of the workforce efficiently.
To provide the organization with well-trained and well-motivated employees.
To increase to the fullest the employees job satisfaction and self-actualization.
To be ethically and socially responsive to the needs of the society
ADVANTAGES OF EFFECTIVE TALENT MANAGEMENT:



Helps in achieving the business goals with superior performance.
Better overall growth of people associated with the organization.
Improves organizations overall culture and work.
TALENT MANAGEMENT AND HR:
Talent management suddenly evoked the charm and attention for the business world. Much of the reason may
be due to the fact that technology has finally begun to catch up.
1
STUDENT, SRI KRISHNA ARTS AND SCIENCE COLLEGE, SUGUNAPURAM KUNIAMUTHUR POST,
COIMBATORE-641008
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Human resource management systems (HRMS) providers, already present in many businesses, have begun to
create add-on applications that provide a strategic layer on top of the more administrative HR functionalities
they already offer.
BENEFITS OF IMPLEMENTING TALENT MANAGEMENT PROGRAM:



Company with a talented and successful work-force can develop a public reputation for being a great
place to work, which fosters loyalty among current employees.
Talented candidates will also be more interested in working for a company that values its employees
and gives them opportunities for continued success.
Providing these resources helps your employees achieve their best individual potential, and it helps
your business respond to challenges, enter new markets and move ahead of the competition.
LITERATURE REVIEW:
1. The linkage between talent and talent management: The linkage between these is not something
new. John Boudreau began using the term decision science in the context of talent management and
HR in the late 1990s (BOUDREAU, 2007)
2. The approach to Talent Management technology: To meet the talent management demand, this
“solution convergence” is taking several forms. Human resource management systems (HRMS)
providers, already incumbent in many organizations, are beginning to create add-on applications that
provide a strategic layer on top of the more administrative HR functionalities
3. Problems with TM as currently defined: The third perspective of TM is perhaps the most
problematic. On the one hand it is an appealing message on at least two levels. We suspect the vast
majority of HR practitioners would resonate to the following quote “If we deal only with programs
and processes, then we never touch what is ultimately our greatest strategic differentiator: The talent
inherent in each person, one individual at a time
IMPACT OF DRIVERS ON ATTRACTING, DEVELOPING, RETAINING, AND MOBILIZING TALENT
The above four drivers of factors (e.g., shortage of talented workers, changing demographics, changing attitude
towards work and structure of work, and country culture differences) can strongly impact the need for and
content of these global talent management practices and policies (&SCHULER, 2010)
Attracting (this includes policies and practices that recruit and select talented individuals);
Developing (this includes policies and practices that provide job and career related competencies to talented
individuals);
Retaining (this includes practices that prevent talented individuals from leaving the organization); and
Mobilizing (this includes practices that facilitate the movement of talented individuals across regions or
countries).
In turn, each of the four drivers can impact these four global talent management policies and practices in the
following ways (&SCHULER, 2010)
How each policy and practice is designed or configured (for example, the aging population will encourage
organizations to use developing and retaining practices that facilitate the transfer of knowledge from the older
employees to the rest of the organization.
How each policy and practice is utilized (for example, the shortage of skilled workers will force organizations
to extensively use in-house learning activities such as corporate universities to develop raw talent that already
exists in the organization)
How each policy and practice is evaluated (for example, the changing job structures will force organizations
to evaluate the effectiveness of each global talent management practice more frequently as job tenure becomes
shorter and increasingly uncertain)
The impact of the four drivers on the global talent management policies and practices is now discussed in
detail.
Attracting Talent
The literature and research in this area can be broadly categorized in three fields: talent planning and
deployment, human resource management reputation, and aggressive talent sourcing.
The role of talent planning to identify future talent needs is important at all levels of the organization
(CHEESE, 2010) (FREEDMAN, 2009) (LAWLER, 2008)Research here focuses on the type of competencies
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(knowledge, skills, abilities and personality) that will be needed in various locations, using existing attrition
and retirement data of the current employees in conjunction with the business plans of the firm. The goal of
talent planning is to have an optimal level of talent positioning, which refers to having the right talent at the
right place at the right time with the needed competencies and motivation at all levels and all locations of the
firms) (GUTHRIDGE, 2008) Talent planning becomes even more critical at a time when most of the
economies of the world are recovering from a recession. Learning from a period of recession is becoming an
integral part of talent planning (CHEESE, 2010). Most organizations are concerned about retaining the current
level of talent, but more importantly, attracting new talent when the recession ends regardless of worldwide
location. In addition, organizations are also concerned about the issue of developing a global talent deployment
strategy, which refers to how companies formulate strategies to position leadership talent across the
organizations in various regions and countries (&SCULLION, 2009)
Aggressive Talent Sourcing: There is a general assumption in the talent management literature that most
talented individuals are, in general, always employed (&SCHULER, 2010), so a challenge for organizations
is how to reach this talent pool. The traditional sourcing strategies may not work. Another challenge for
multinational organizations is to counter the threat of local talent being more attracted to a local organization
rather than a multinational organization (SCHIMDT, 2009)
Thus multinational organizations may be forced to use creative and aggressive strategies to attract talent. This
includes:
Targeting specific individual profiles (e.g., certain personality traits) (HEDRICKS, 2008)
Recruiting and developing foreign nationals to work in their own country such as hiring and developing
Chinese students from British universities to work in China (CLEGG, 2004)
Attracting a diverse pool of applicants such as female workers and providing support to them to manage career
barriers like the glass ceiling (HEWLETT&RIPA, 2010)
Although we discuss “talent development” next, the notion of developing and growing talent can also be seen
as an aggressive technique to attract talent. The evidence from the earlier part of this report suggests that both
the developed and developing nations face substantial challenges in the lack of employment readiness of the
potential labor force. Attracting “raw talent” with potential for development is a viable approach that that can
play an important role in an organization’s overall talent attraction strategy.
Effective Retention Strategies. As discussed earlier, the major drivers (e.g., changing attitude towards work
and structure of work) are allowing workers at all levels to change jobs more often. In this context, retaining
talent becomes a major challenge for all organizations. One of the key challenges many organizations grapple
with is why talented employees leave, taking with them essential competencies and experiences. Job
satisfaction and passion for the work they do play an important role. The reality is that talented employees will
leave. One perspective on this issue suggests that in today’s fluid work environment short-term tenure of
talented employees is a norm and companies should think about extracting as much as possible form talented
employees in a short period of time (&SCHULER, 2010) . Effective retention strategies include:
Talent Engagement. This is a huge area of research that suggests employees who are more engaged with their
work and organization are likely to have greater job satisfaction, have a positive opinion of their employer, are
less likely to voluntarily leave, have greater customer loyalty, and have high levels of performance
(LOCKWOOD, 2007)
Career Development. Organizations that provide career planning to talented employees are more likely to see
a low level of voluntary turnover. When employees have a good understanding of their career path and the
assurance that their organization values their development, they can be more connected to their work and
organization
Training. Provide work or job specific training (relative to general training) that provides skills that are less
transferable to other organization.
Talent management culture. Show to employees that talent management is a priority for all employees,
sourcing talent globally, and rewarding managers for improving talent retention (&SCHULER, 2010)
METHODOLOGY, ANALYSIS:
The method deployed here was how effectively an organization would use the resources available at its
disposal and a case study has been done on various such firms and their techniques and their ways of using
this tactic to good effect. This article recognizes that global talent management has emerged as a critical
element of strategic human resource management in the multinational enterprise and highlights a number of
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key factors which have influenced decision making in global talent management as well as some emerging
trends which will influence decision making in talent management in the future. However, the authors
recognize that the study of talent management is still a relatively new and continually evolving area of
Research and more empirical studies are required to better understand talent. A key requirement for effective
decision making in talent management is that talent management should be linked to the strategy and corporate
culture of the firm, and it has been suggested that the focus of the global talent management agenda is likely
to shift over time as a firm passes through the various stages of the internationalization management decision
making in relation to the context in which it takes place. Finally, to improve decision making in talent
management, we suggest the need to develop more comprehensive frameworks to reflect the complex set of
environmental factors that affect talent management in the international context.
CONCLUSIONS AND LIMITATIONS:
In the best of talent management programs, organizations “integrated talent management, succession planning
and leadership development into the company’s strategic business processes. When the process runs smoothly,
[companies] have a clear sense of whether their leadership teams will be able to execute on future strategic
initiatives.” It is management, therefore, not HR, who should feel responsible for ensuring that the company
defines clear job roles – outlining necessary skill levels and competencies for each – and determine the
appropriate incentives, rewards and compensation and set the metrics by which success will be measured. In
many leading organizations, management establishes the necessary parameters which ensure that the
organization has the right person with the right skills in the right job at the right time to reach strategic goals
at all levels. By grounding TM in a strategic decision framework that clearly guides talent decisions,
developing systems-level models that illustrate the multi-pool impacts of talent choices, and developing
reliable, validity, and theoretically meaningful measures researchers can markedly improve the quality of talent
conversations in organizations. Talent Management in any organization goes along way into determining its
efficiency and its proper working. So it has a broad scope and cannot be limited to one particular definition or
anything of that kind. Though there are many limitations its main purpose remains that it has to overcome all
those and achieve the overall objectives of the organization.
REFERNCES:
[1] &SCHULER, T. (2010).
[2] &SCULLION, C. (2009).
[3] &VOSBURGH, B. (2001). pp. 18-19.
[4] BOUDREAU, R. A. (2007). p. 25.
[5] CHEESE. (2010).
[6] CLEGG. (2004).
[7] FREEDMAN. (2009).
[8] GUTHRIDGE. (2008).
[9] HEDRICKS, H. 2. (2008).
[10] HEWLETT&RIPA. (2010).
[11] LAWLER. (2008).
[12] LOCKWOOD. (2007).
[13] Preeti Khatri, S. g. (2010). Talent Mangaement in HR. JOURNAL OF MANAGEMENT AND STRATEGY.
[14] SCHIMDT. (2009).
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RELATIONSHIP BETWEEN SELF-ESTEEM AND LOCUS OF
CONTROL AMONG ADOLESCENT STUDENTS IN BANGALORE
ABSTRACT
Dr.S.Anil Kumar 1
Ms. Bharati Rao Pothukuchi 2
This paper studied the correlation relationship between Self-esteem and Locus of control in a college
setting. Walter Hudson’s Self-esteem scale was used to measure Self-esteem, and Nowicki and Duke’s
scale was used for Locus of Control. 100 students of a Women’s College in the age group 17 to 20 was
the sample. Self-esteem is a person’s confidence, self worth, regard for oneself. The hypothesis was that
high Self-esteem is positively correlated with Internal Locus of control. This is because people with an
internal locus of control believe that their own actions determine the rewards that they obtain. Hypothesis
also is that self-esteem has no correlation with external locus of control-be the external locus of control
high or low. This is because those with an external locus of control believe that their own behavior
doesn't matter much and that rewards in life are generally outside of their control.
INTRODUCTION
Self-esteem describes a person's overall sense of self-worth or personal value. It is one of the four core
constructs -the other three being Self Efficacy, Neuroticism and Locus of Control.
Morris Rosenberg and social-learning theorists defined self-esteem as personal worth or worthiness.
Nathaniel Branden (1969) defined self-esteem as the experience of being competent to cope with the basic
challenges of life and being worth. According to Branden, self-esteem is the sum of self confidence (a feeling
of personal capacity) and self-respect (a feeling of personal worth).
Looking at the evaluative component which is the looking within, Smith and Mackie define self-esteem as
"The positive or negative evaluations of the self, as in how we feel about it. Self concept is what we think
about the self".
Based on views of Abraham Maslow and Carl Rogers, self-esteem has two perspectives. One perspective is
looking within and evaluating. The other perspective is looking without, which is the social perspective.
Looking without is based on evaluation of treatment by others.
Abraham Maslow considered self-esteem important for self actualization-the highest need and gave it due
importance, placing self-esteem in the upper hierarchy of needs. According to Maslow there are two different
forms of esteem: First, the need for self-respect, or inner self-esteem. Second, the need for respect from others
(this is the social perspective).
Carl Rogers gave a new dimension to self-esteem with ‘Positive self regard’ and ‘Positive regard’. According
to Rogers, every human being, with no exception, is deserving of unconditional positive regard by everybody
else. Every person deserves to esteem himself and to be esteemed.
Positive self regard is the umbrella term he has given for self-esteem, self worth, and positive self image. It is
a positive attitude towards the self which is not directly dependent on the attitude of others. But this positive
self regard is achieved by experiencing the positive regard others show in growing up years. This positive
regard results in self-esteem.
According to Rogers, vast difference between ideal self and real self also lead to poor self-esteem. Hence for
positive self-esteem, acceptance of self is important.
Locus of control is a concept coined by Julian B.Rotters (1954) and explains causation as perceived by
individuals in response to personal outcomes(called internal locus of control) or causation in response to other
events(external locus of control). A person's "locus" means place or location in Latin. Locus of control can be
1
2
Associate Professor of Commerce,NMKRV College for Women,Bangalore,India
Research Scholar, Mother Teresa University for Women, Kodaikanal,India
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internal if the person believes they can control their life. Locus of control can be external if individuals believe
that their decisions and life are controlled by environmental factors which they cannot influence.
According to William H James, people could be divided into those who attribute to ability (an internal cause)
versus those who attribute to luck (an external cause). According to William H. James’, ‘expectancy shifts’
can be linked to locus of control. Typical expectancy shift is related to expectation, similar outcome and can
be related to internal locus of control. Typical expectancy shifts were displayed more often by those who
attributed their outcomes to ability. Atypical expectancy shift has no relationship with outcome, and could be
explained by external l locus of control. Those who displayed atypical expectancy were more likely to attribute
their outcomes to chance.
According to Berbard Weiner locus of control may relate to whether attributions are made to stable or unstable
causes. Weiner has linked locus of control to motivation, with internal and external locus of control
determining ability, effort, chance and task difficulty.
Herbert M. Lefcourt defined the perceived locus of control: ".as .a generalized expectancy for internal as
opposed to external control of reinforcements".
Relationship between Self-esteem and Locus of Control:
Whether Self-esteem and Locus of control are intertwining concepts, is the object of research of many
psychologists. Self-esteem connotes self worth which is the evaluation by self. However, self worth is also
determined by behavior of others towards oneself. Therefore, could it be linked to locus of control? Could it
be that the feeling of being in control of one’s life-which is called the internal locus of control, influences selfesteem? Or conversely, could the feeling of being in control of one’s life (internal locus of control) go along
with the sense of self worth (self-esteem) of a person? Can external locus of control (meaning being controlled
by chance, or not having control over outcomes affecting our life) undermine the feeling of self worth or selfesteem that we experience? Could the relationship be a linear one, or a causal one?
IMPLICATIONS OF STUDY
Internal perceived locus of control (as fostering high self-esteem) has special implications in Indian context,
due to social restrictions imposed on girls.
Findings of this study have implications in counseling for student development, as well as for framing of
syllabi for young adolescent girl students in India, in enhancing employability, performance, wellbeing, and
so on.
Nothing in the way we think, feel, decide and act escapes the influence of self-esteem. It affects the way we
are and act in the world and the way we are related to everybody else. Hence behavioral training for adolescents
can use findings of self-esteem and locus of control relationship study.
Higher self-esteem is also known to be correlated with a better ability to cope with stress and a higher likeliness
that the individual takes on difficult tasks relative to those with low self-esteem. Hence, there is greater
possibility of a relationship between high self-esteem and internal locus of control.
Positive self-esteem increases the capacity to treat other people with respect, benevolence and goodwill
leading to happiness, healthy interpersonal relationships and internal locus of control.
Perceived internal locus of control could influence ability, effort. (Weiner’s Attribution theory for student
motivation.)Hence these results could be used for motivational training.
Locus of control, self-esteem in combination with reinforcement theory has implications for performance and
job-satisfaction. (William James)
Combined with contingent reinforcement, knowledge of type of locus of control could enhance performance.
It could lead to inner directedness in the person’s life.
RELATED STUDIES
Influence of sports and physical fitness was studied by the Institute of Educational Research in Belgrade on
relationship between self-esteem and locus of control among sportsmen. Positive correlation between going
for sports and self-esteem and negative correlation between going in for sport and external locus of control
was found among boys. This could be because of social evaluation of sport achievement and physical fitness
among boys.
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Influence of culture and race on self-esteem and locus of control was studied by James.C.Martin in October
1978.Relationship varied according to ethnicity. Locus of control became increasingly internal with age, and
internality relates positively with self-esteem.
Influence of locus of control and self concept on academic settings with special reference to academic critical
incidents was studied by Tanya L.Dawn and Glendon Webe in 1998. It was found that failure does not affect
individuals with high self-esteem as drastically as it does individuals with low self-esteem. Individuals with
high self-esteem are more able to cope by attributing failures to external factors and discredit negative
feedback. Individuals with low self-esteem extend the effect to other domains of thoughts unrelated to failure.
Emotional state, a part of self-esteem has been shown to depend on locus of control by
Jagacinski and Nichijolls in 1984.System blame and self-blame are both related to self-esteem and locus of
control.
Whyte correlated locus of control with the academic success of students enrolled in higher-education courses
in the 1970s and 1980s. Students who were more internally controlled believed that hard work and focus would
result in successful academic progress, and they performed better academically. Those students who were
identified as more externally controlled tended to have lower academic-performance levels.
A study on adolescent self-esteem and locus of control by Chubb , et.al indicated gender differences significant
relationship between gender and lower self-esteem scores for girls was found. For locus of control, there was
a significant relationship between grade and interaction between grade and gender.
Andrew T.Stephen and Kerth Wilcox studied the use of social networks in relationship with self-esteem in
June 2013.He found that Facebook increased self-esteem only when the individual focused on information
they were sharing with others, or when the information pertains to them.
Vaux in 1988 and McWhirler in 1997 found that low self-esteem was related to the feeling of loneliness .
Roy F.Baumeister in 2003, found no evidence that continued effort to boost self-esteem fosters self-esteem.
According to Alison Budd , as level of perceived social support increases the level of self-esteem also
increases.
According to Opacic , self-esteem and accompanying success are the sources of internal locus of control.
OBJECTIVE OF THE STUDY
Therefore the objective of the study is to find out the relationship between Self-esteem and Locus of control
in adolescent students, as both have implications for behavior, thought and performance.
SCOPE OF THE STUDY
The scope of this study is students of BA, B.Sc, B.Com, BBM, and BCA with sample age between 17 and 20,
with special relevance to girls.
METHODOLOGY
100 adolescent girl students pursuing under graduation , in the age group 17 to 20 years was randomly chosen
from different undergraduate colleges located in Bangalore. Hudson’s Self-esteem Questionnaire and Nowicki
& Duke’s Locus of Control Questionnaire were administered together, after explaining the significance of the
two topics to them. The questionnaires were scored and the Pearson’s Co-efficient between self-esteem and
locus of control was calculated.
PSYCHOLOGICAL TESTS USED
[1] Index of Self-esteem, a 25 item questionnaire developed by Hudson (1982) to measure the level of
Self-esteem was adopted for the study. It was designed to reflect the extent to which a person feels
positive about himself and his social interactions. Hudson (1982) obtained a reliability coefficient of
0.92.good-to-excellent content, construct, concurrent, and factorial validity.
This questionnaire is designed to measure how a subject sees himself. It is not a test, so there are no rights or
wrong answers. The Likert type scale measuring self-esteem has five choices(a) Rarely or none of the time
(b) A little of the time
(c) Sometime
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(d) A good part of the time
(e) Most or all of the time.
An overall score below 30 represents high self-esteem while scores 30 and above represent low self-esteem
i.e., the scores are inversely related to self-esteem. Low scores mean high self-esteem and high scores mean
low self-esteem.
[2] Locus of control Scale developed Stephen Nowicki and Marshall Duke (1974) to measure External
and Internal Locus of control was adopted for this study. Reports on test-retest reliability (Chandler,
1976; Nowicki & Duke, 1974) have been positive (such as .83 over a six-week period). The Nowicki
and Duke scale for Locus of control was chosen in preference to the original Rotter (1966) scale as
the language was simpler and easier for the sample being tested to understand. Also, Rotter’s scale
had a tendency for subjects to give socially desirable responses; the Nowicki and Duke version seems
to have minimized this problem. The validity of the scale has been supported by evidence that it
correlates well with the original Rotter scale, and that it is related to other variables in the same way
that the original scale was.
The number of questions is 40, with responses forced choice-either yes or no. Every response that coincides
with the key is circled, and the number of circles totaled together is the score. Scorers are categorized into
three categories.
External Scorers: Those scoring above 15 are External scorers. A score above 15 suggests that the subject has
a strong belief that events are beyond his control. In other words, he does not feel that there is much of a
connection between his behavior and behavioral outcomes. This means that he is less likely than others to take
credit for his successes or to take the blame for his failures. Instead, he tends to believe that success and failure
are primarily a matter of luck and chance breaks. External Score- 16-40 is found to have more than 1.50
standard deviations above the mean.
Intermediate Scorers: Those scoring between 7 and 15 are Intermediate scorers. A score in this range means
that the subject has inconsistent views about the degree to which he controls his own fate. He probably believes
that he does not control his fate in some areas of his life, while believing that he has little control in other areas.
Intermediate Score-7-15 is found to be from 0.75 standard deviations below the mean up to 1.50 standard
devia¬tions above the mean.
Internal Scorers: A score below 7 indicates that the subject has a firm belief in his ability to influence his
outcomes. A relatively internal score means that the subject generally does not attribute his successes and
failures to good and bad luck or chance factors. Instead, he feels that he can influence the course of what
happens to him. An internal locus of control is associated with relatively great stress tolerance. Internal Score0- 6 is more than 0.75 standard deviations below the mean.
STATISTICAL TEST USED
Pearson Correlation Coefficient
Correlation between variables is a measure of how well the variables are related. The most common measure
of correlation in statistics is the Pearson Correlation (technically called the Pearson Product Moment
Correlation or PPMC), which shows the linear relationship between two variables. Two letters are used to
represent the Pearson correlation: Greek letter rho (ρ) for a population and the letter “r” for a sample.
Results between -1 and 1: -1 means perfect negative correlation. 1 means perfect positive correlation.0 means
no linear relationship between the two variables.
High correlation: .5 to 1 or -0.5 to 1.0
Medium correlation: .3 to .5 or -0.3 to .5
Low correlation: .1 to .3 or -0.1 to -0.3
PPMC does not differentiate variables as dependent or independent.ie: Correlation does not mean causation.
ANALYSIS OF RESULTS
CorrelationHigh or low?
Table-A Correlation between Self-esteem and Locus of Control
High Self-esteem
No: of Students
Low SelfNo: of
with High Selfesteem
Students with
esteem
Low Selfesteem
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Internal Locus of
Control
High,
24
Low
3
Intermediary Locus of
Control
High
3
High
43
External Locus of
Control
Low
0
Medium
27
Total No: of
students=100
27
73
Table-B Percentage Segregation of 100 students into High Self-esteem and Low Self-esteem groups
No: of students with
No: of students with
High Self-Esteem
Low Self-esteem
27%
73%
Table-C Percentage Segregation of 27 students with High Self-esteem into Internal, Intermediary & External Locus of
control groups
Students with
High Self-esteem
Internal locus of control
88.90 %
Intermediary Locus of control
11.10%
External locus of control
0
Table-D Percentage Segregation of 73 students with Low self-esteem Into Internal, Intermediary & External Locus of
control groups
Students with
Low Self-esteem
Internal locus of control
4.10%
Intermediary Locus of control
58.90%
External locus of control
37%
SUMMARY OF FINDINGS
Correlation between the variables-Self-Esteem and Locus of control does not indicate a causal relationship
between the two (Statistical tool used being Pearson’s Correlation).
The number of students with high self-esteem is less. It is almost a fourth of the number of students tested.
The correlation between high self-esteem and internal locus of control is very high (88% of those with high
self-esteem).Hence students with high self-esteem perceive they are in charge of their life outcomes. This is
in consonance with our hypothesis.
The number of students with low self-esteem is large (73% of number of students who gave the test).Almost
half of the students with low self-esteem (58.90%) are not clear whether they are in control of their life, or
whether it is external factors beyond their control and understanding that can be affecting their life outcomes.
Hence they are in the Intermediary category. High self-esteem also has shown no correlation with external
locus of control. Both these findings are in consonance with our hypothesis, which states that self-esteem has
no relationship with external locus of control.
37% students with low self-esteem show medium correlation with external locus of control, meaning they
perceive external rewards beyond their control to be the affecting factors. This negates our hypothesis.
DISCUSSION
Students with low self-esteem appear not to be clear about what are rewarding outcomes as they vacillate
heavily between Intermediary and External locus of control.
Large percentage of students with low self-esteem in Intermediary category also indicates unclear perspectives
of what are the rewarding outcomes and what are not. It may sometimes happen that outcomes are rewarding
(e.g., self-improvement classes), but students are not perceiving them as such. Thereby the locus of control of
these outcomes, instead of being perceived as internal, is wrongly perceived as external.
Sometimes external outcomes (for e.g., netsurfing) are wrongly perceived to bring internal locus of control.
Students may also not be aware of the importance of self-esteem and locus of control for their life and for
performance. As adolescents, they may also be requiring more positive regard that leads to high self-esteem,
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to be shown towards them in growing up years. They may also not be having enough opportunities or
knowledge to identify what could be the rewards that could give them control of their life.
RECOMMENDATIONS
It is recommended that for a feeling of greater control over life outcomes, students be encouraged to take up
activities to enhance self-esteem, as high self-esteem is highly correlated with internal locus of control.
[1] Extent of correlation between self-esteem and locus of control of each student, with profiling of the
results of the 100 students would give more accurate results.
[2] Contribution of Need for achievement also to be studied simultaneously, as internal locus of control
alone cannot be attributed to perceived control over life.
APPENDIX
[1] Judge, Timothy A.; Erez, Amir; Bono, Joyce E.; Thoresen, Carl J. (1 January 2002). "Are measures of selfesteem, neuroticism, locus of control, and generalized self-efficacy indicators of a common core construct?".
Journal of Personality and Social Psychology 83 (3): 693–710. doi:10.1037/0022-3514.83.3.693. PMID
12219863.
[2] Baumeister, Smart, & Boden, 1996
[3] Nathaniel Branden. Cómo mejorar su autoestima. 1987. Versión traducida: 1990. 1ª edición en formato
electrónico: enero de 2010. Ediciones Paidós Ibérica. ISBN 978-84-493-2347-8.
[4] Newman, Barbara M., and Philip R. Newman. Development through Life: A Psychosocial Approach.
Homewood, IL: Dorsey, 1975. Print.
[5] Maslow A. H. (1987). Motivation and Personality (3rd ed.). New York: Harper & Row.
[6] José-Vicente Bonet. Sé amigo de ti mismo: manual de autoestima. 1997. Ed. Sal Terrae. Maliaño (Cantabria,
España). ISBN 978-84-293-1133-4.
[7] Carlson, N.R., et al. (2007). Psychology: The Science of Behavior - 4th Canadian ed.. Toronto, ON: Pearson
Education Canada.
[8] Rotter, J.B. (1966). "Generalized expectancies of internal versus external control of reinforcements".
Psychological Monographs 80 (609).
[9] Weiner, B., ed. (1974). Achievement Motivation and Attribution Theory. NY: General Learning Press.
[10] Lefcourt 1976, p. 27, Herbert M. Lefcourt, Locus of Control: Current Trends in Theory and Research.
Psychology Press, 1982
[11] José-Vicente Bonet. Sé amigo de ti mismo: manual de autoestima. 1997. Ed. Sal Terrae. Maliaño (Cantabria,
España). ISBN 978-84-293-1133-4.
[12] Schacter, Daniel L., Daniel T. Gilbert, and Daniel M. Wegner. "Self-esteem." Psychology. ; Second Edition.
New York: Worth, Incorporated, 2011. 496.
[13] Nathaniel Branden. Cómo mejorar su autoestima. 1987. Versión traducida: 1990. 1ª edición en formato
electrónico: enero de 2010. Ediciones Paidós Ibérica. ISBN 978-84-493-2347-8.
[14] Institute of Educational Research,Belgrade.ISSN 0579-6431, DOI: 10.2298/ZIP 10602385G
[15] James C.Martin,Journal of American Indian Education, Volume 18, Number 1, October 1978
[16] Tanya L Dawn and Glendon Webe, Thesis for MA, Trinity Western University, August 2003
[17] Jagacinski and Nicholls,1984 cited in Turner 1998
[18] Adolescent self-esteem and locus of control ,a Longitudinal study of Gender and Age differences by Chubb,
Nancy H,Fertman, Carl I, Ross, Jennifer L, Academic Journal article for Adolescents Volume 32, No:125
[19] Andrew T Stephen and Keith Wilcox, Are close friends the enemy, Social networks may affect self-esteem,
reduce self-control, Journal of Consumer Research June 2013
[20] Nicholas Emler, The costs and causes of low self worth,Published for the Joseph Rowntree foundation, by YPS
SBN 1842630202,Published by York Publishing services Ltd.York, Y0317ZQ
[21] Roy F baumeister, Jennifer Campbell, Joachim and Krueger, Kathleen D.Vohs, “Does high self-esteem cause
better performance?” Psychological Science in public interest, Volume 4, No:1, May 2003
[22] Allison Budd,Callie Buschmann,Lucas Esch,Huntungton university,URTHS,Volume 8, Correlation of Selfesteem and perceived social support
[23] Canadian Council of learning report,2007
[24] “ Index of self-esteem” questionnaire, Walter w Hudson, Publisher, Archival Material 4655612 @1974
[25] Nowicki and Strickland, 1971- faculty.mansfield.edu/mlaunius/Psy4430/Documents/Tests/loc.doc
Nowicki, S., Strickland, B. (1973). "A locus of control scale for children". Journal of Consulting and Clinical
Psychology 42: 148–55. doi:10.1037/h0033978
[26] http://www.statisticshowto.com/articles/what-is-the-pearson-correlation-coefficient/
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INFORMATION AND COMMUNICATION TECHNOLOGY IN
DEVELOPMENT: CAN I (T) HELP INCLUDE THE EXCLUDED?
ABSTRACT
Dr. Uttam Kr Pegu1
The focus of this paper is to assess the role of Information and Communication Technology in
development. The discourse on technology and development raises numerous questions and challenges
for academics, practitioners and policymakers. It is argued that development can be inclusive only if all
sections of the society share the benefits of development and participate in the decision-making process.
Given the fact that many people are excluded from such endeavour because of their ethnicity, gender,
disability or poverty, the effects of such exclusion foster astounding and deepening inequality among the
socially deprived group. Information Technology could be a viable tool in facilitating inclusive
development. This paper examines how e-governance can further inclusive development in north-east
India. E-governance which has become increasingly important in the conduct of governance has
transformed the way government functions today. It can provide networking structures transcending
borders, languages and cultures, and further empowerment amongst citizens particularly the
disadvantaged group. The study investigates i) How e-governance has brought in new and challenging
ways for citizens to communicate and participate in the administrative processes; ii)The emancipatory
and transformative potentials of e-governance in inclusive development; and finally iii) The overall impact
of e-governance in socio-economic development in Northeast India.
KEYWORDS: ICT, e-governance, inclusive development, inequality
INTRODUCTION
India over the years has been one of the major implementers of Information and Communication Technology
(ICT) projects particularly e-governance in most parts of the country. There are many reasons, which explain
why there has been a paradigm shift of governance in the country. Perhaps the most obvious is the search for
a solution to what has long been an intractable problem: that is to do away with social inequalities. Today ICT
has helped India surmount some of its socio-political, socio-economical and administrative challenges and it
could be seen in the reverberations of the innumerable ICT projects that have been initiated in many parts of
the country. It could be used innovatively to improvise access and delivery of government services considering
the fact that India has the skilled and efficient IT manpower to build an ICT infrastructure.
ICT applications are interwoven in socio-economic, political and cultural factors. Therefore, the underlying
assumptions of these inventories, as well as their limitations need to be examined carefully. Norris (2001)
points out that the key issue in evaluating e-governance is the way in which it affects the nature of the
relationship between political institutions, bureaucracies and citizens; and whether it facilitates a relationship
based on public accountability and participation. There are critics who, in general, suggest that the whole
enterprise of ICT may have created a new class of untouchables living in information poverty, compromised
equal access to government services and eroded accountability and individual privacy (Ghere & Young, 1998).
Information and Communication Technology in development endeavour is a contested concept. Some authors
suggest that ICTs can lead to a rapid process of development through the facilitation of market mechanisms as
the means to achieving economic growth (UNDP, 2001). Others argue for a shift from an economic-centric
perspective on development to a context sensitive one which reflects the social conditions in which ICTs are
embedded (Avgerou, 2003). The latter perspective challenges the leapfrogging notion and suggests
prerequisites to development agendas, including the improvement of basic facilities such as healthcare and
education (Bollou & Ngwenyama, 2008). In such a scenario will the tantalizing promise of e-governance
burgeon and influence the average citizen's life?
1
Asstt. Professor, Deptt. of Mass Communication & Journalism, Tezpur University, Tezpur, 784028, Sonitpur, Assam
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It is seen that western knowledge over traditional and indigenous form of knowledge continues to be implied
in practice (Puri & Sahay, 2007). It is in this aspect development initiatives become problematic owing to their
ill-conceived guiding strategies (Soeftestad & Sein, 2003). These issues are particularly poignant due to the
relative scarcity of resources for investment in ICT projects. Some initiatives, even if successful in the early
stages of implementation are discontinued because of several issues. Several authors have identified lacunae
in such endeavors such as lack of commitment among the implementers, inadequate resources, technical and
functional maintenance (Avgerou, 2008). The issues relating to the sustainability of ICT-based development
initiatives should be well researched (Walsham & Sahay, 2006). It is felt that the information systems that are
conceived and implemented in locally meaningful ways could contribute to development agendas.
Information Technology could be a facilitator in empowering the marginalized as it can bring about new ways
for citizens to communicate and participate in political and administrative processes. Besides ICT's can
perform tasks that are essential to democratic and sustainable development as it can provide low cost and high
speed interactive communication with unprecedented access to information sources. Such an approach is
significant for governance and public administration because of its benefits to a larger section of the society
(Sharma, 2002). ICTs can make a significant contribution to the achievement of good governance goals (Heeks
2001). The e-governance permeates i) economic growth and social cohesion ii) relationship with the governed
iii) internal administration and iv) relationship with the international environment (Brown, 2005).However, its
potentiality to bring about inclusive development has sparked off wide ranging hopes and speculations.
The implementation of Information and Communication Technology in India has been intriguing and complex.
Its major policy measures have been defined in terms of computer density, connectivity, content, cost and
cyber laws (Vittal, 2000). India has one of the fastest growing IT sectors in the world and one of the largest
users of ICTs. This revolution in ICT has facilitated the globalization of economy, business, finance and culture
(Heeks, 1999). It constitutes the fastest growing component of the global economy and the revenue generated
by the interactive information industry has crossed more than $ 3.5 trillion (Hariharan, 1999). Due to its
increasing social importance several IT projects have been taken up in most parts of the country. Besides, the
role of technologically-mediated information and communication processes has far-reaching advantages.
INFORMATION AND COMMUNICATION TECHNOLOGY IN DEVELOPMENT
The role of Information Technology in society has been an important subject of discussion among policy
makers, academics and agencies concerned with developmental activities. Given the percolation of the
information technology market in the socio-economic space, it becomes imperative that its potentialities are
harnessed so that the voices of the poor and the marginalized are adequately heard to prevent accentuation of
inequities. Civil society initiatives can take advantage of ICT so that the state fulfills its obligations for the
upliftment of the downtrodden. IT has changed the nature of the workforce, human relations and public
expectations, represents a considerable challenge to the state to adjust its public governance (Centre on
Governance, 1999).
There are innumerable ICT initiatives in India and some of them are held as models to be emulated. But it has
been observed that apart from the concerned organizations claiming success in such initiatives, assessments of
such projects are not adequate. Though ICTs have led to progressive changes in both the economic and social
spheres, they are extremely limited due to lack of understanding of the complex ways in which technology is
implemented in the society. Therefore, there is a need to re-examine the context and reasons as to how ICTs
are held up as solutions to further inclusive development. It is therefore, essential to enquire whose interests
ICT based solutions serve. Although there is a growing feeling that ICT in governance offers almost limitless
possibilities like evolving new forms of citizenship, the technologies have not been fully harnessed even in the
country’s leading the global e-governance scenario. The notable fact is that the literature on e-governance has
gone much ahead of the actual achievements (Sinha, 2006).
India which was one of the early adopters of IT in administration began to execute rural development program
with a relatively visible ICT content in the 1970s. The Dharampur Sub-District Infrastructure Planning for
Development (1977) was one of the attempts to use computer applications for cost optimization. The Karwar
Rural Development Information System (1984) was another initiative with a view to reducing delay and
curbing corruption (Kaul et al. quoted in Bhatnagar, 1990). By 1980’s India developed the NICNET
connecting government users such as EDUNET for education institutions and INDONET for the benefit of
industrial users in major cities (Bhatnagar, 1990). The major objectives in the computerization programs
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launched in India were guided by the factors that shape governmentality. Governmentality represents
continuity in terms of rule of self, household and the state whose ruptures will cause and precipitate crises in
governance (Baddeley, 1997).
Governments around the world have suddenly woken up to the potential of information technology in a variety
of activities notably in furthering developmental activities. India has taken great strides in promoting egovernance applications in recent years. This is largely due to exponential growth in IT industry, particularly
the software industry which has made its presence felt in the international arena as one of a kind. The advent
of IT as enabling tool for delivery of services in the public and the private sector is universally recognized.
Developments in Information and Communication Technology has been taking place at a rapid pace in most
parts of the country. India with its e-literate resources is fast emerging as a major initiator in e-governance
adoption. This is despite the challenges arising out of conditions related to awareness, literacy, basic
infrastructure, bandwidth issues and multi-lingual and cultural issues (Panneervel,2005).
It is observed that given the low level of development of communication infrastructure in most Indian states
the prospects of e-governance are overtly bleak. E-governance in developing and developed countries share
many similarities. However, the differences in infrastructure, user base and political and governance system
need to be systematically studied. Though research in this area is still sporadic but is attracting increasing
attention (Backus 2001; Ndou 2004). Nonetheless, the experience of various state governments has clearly
shown that barriers to the implementation of IT projects can be overcome through a focused and strategic
approach. Even in situations where the initial conditions for trying out e-governance appear to be non-existent
in terms of inadequate skilled personnel or weak infrastructure, a flexible and reflective approach can bring
about drastic changes.
Today ICT’s have redefined the work culture through creation of new work and consumption identities. This
is especially true in a society that is characterized by technological backwardness in most part of the country.
Impacts may be larger, as identities generated in use and production of such technologies can wield more
power than in societies that are already permeated by a high level of technological advancement. The power
in turn can be used to reinforce ideological positions that seek to maintain their status. Even in the west, the
hype built around on IT industry despite all sane predictions to the contrary goes to show how wrong
perceptions of the potential of high technology can be built in a market-driven economy. Attempts to invest in
ICTs to redress socio-economic problems may be one such mode of reinforcing their locational importance.
It is seen that despite the rapid growth of the Indian software sector, its lack of articulation with the rest of the
economy raises numerous questions and doubts concerning the ability of ICTs in the pursuit of inclusive
development. Unfortunately, lessons learnt about the complexity of technological diffusion and social change
and the importance of public policy institutions have not found their way into policy-making. ICTs do not have
any intrinsic ability to undermine existing traditional institutions of power, economic or social, unless agents
direct them towards such ends. The exponential growth in ideas about ICTs in poverty reduction or greater
democratization is not borne out by experience so far. The possibilities to explore the benefits of ICTs to the
fullest would perhaps require be more fruitful by understanding their limitations.
CONCERNS AND CONSTRAINTS IN ICT IMPLEMENTATION
The emergence of Information Technology has no doubt unleashed a new life in the realm of development but
it is a paradox that we are far off from the IT revolution that is bringing about sweeping changes in most parts
of the country. Surprisingly, literature on e-governance has gone much ahead of what it has actually achieved.
The realization and implementation of e-governance presents a myriad of cultural, political, economic and
technological challenges in the country. The scenario of e-governance in the country presents challenges both
in development endeavor and its sustainability. There is a prevalent digital divide, which quantifies the gaps
in accessibility and other ICT's across the country. The gaps perhaps is because it requires skills and hence,
the need of a knowledge-intensive societies. To meet this requirement there is a need to assess the problems
and prospects of IT projects if we are to exploit the benefits of technology.
It has been observed that the infrastructure creation is not guided by a set of well-defined state policies, given
that it is not uniform throughout the country. As such, it is dependent on the needs of individual officers
championing the project and hence is not as effective as it should be. Therefore, the required networking and
communication equipment is either non-existent in many of the government departments or if it exists at all,
it does not serve any tangible purpose as far as the requirement of e-governance application is concerned. The
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use of connectivity options provided by government agencies such as NICNET are used in a very limited
manner for data transmission purpose between districts. It would be worth examining successful e-governance
strategies of other states such as Andhra Pradesh, Madhya Pradesh and Karnataka etc. so that we customize
our state policies.
It is felt that a large number of people at various levels including politicians and IT task force members have
to be trained on the changed environment to meet the expectations of citizens. Such training programs can be
need based and outsourced whenever required. There may be specific requirements for training in certain
projects. Training programmes on e-governance, web interfaces for citizen interaction, document management
and workflow applications, security, office automation and networking etc. could be organized. To start with,
it is important to streamline project objectives which are achievable within a given time frame. Functionaries
attempting to design e-governance applications must have adequate experience and training to design,
implement and manage ICT applications. They must be able to adequately re-engineer the existing processes
and introduce the desired changes in the system.
An understanding of successful e-governance projects will give a momentum in furthering implementation of
e-governance in a more effective manner. This would allow any organization planning an IT project to instantly
ascertain whether any such project has already been implemented in the country. Intending implementers
would know who the key stakeholders in similar projects are and what approaches could be adopted to reach
out to them as it is much easier to replicate an existing project than to evolve it. Successful projects which are
already in operation in similar environments in the country become much easier in an implementation. The egovernance architecture should ensure that the components are scalable and adaptable for future requirements.
The local architecture has to fit into the state, national and global architecture.
Given the potentialities of technology in furthering inclusive development it is expected that ICT applications
foster inequalities so that the socially and economically backward communities are benefitted. Therefore, the
service delivery mechanisms must look into these factors or else accessibility, affordability and acceptability
may affect the deployment of such projects being implemented. Moreover, the delivery outlets must be located
in the areas convenient to the end users. The operators must be adequately trained in the application of eservices and in all possible services pertaining to e-governance. There must be a system of record keeping
measuring the service utilization and service quality. Periodical reviews such as user friendliness must be
measure in order to monitor and improve the quality of services.
The success and commercial sustainability of any e-governance is based on the effectiveness with which the
Public-Private-Partnership (PPP) executes the project. Therefore, involvement of private agencies for different
tasks through appropriate PPP is of utmost importance. However, it should be kept in mind that while there
are benefits of private participation, it is important to safeguard the social objectives behind these applications.
Pure commercial benefit should not determine as to which services should be offered to the citizens. While we
understand that the application of e-governance goes far beyond mere computerization of government and
public documents, we need to realize that it not only calls for fundamental reshaping but also an attitudinal
change as to how the government departments should operate.
CONCLUSION
Information and Communication Technology in inclusive development raises numerous questions and
challenges for academics, practitioners and particularly the policymakers. Development can be inclusive only
if all sections of the society share the benefits of development and participate in the decision-making process.
There are numerous reasons why there are social exclusion and why they continue to lag behind the rest. Given
the fact that many people are excluded from development because of their ethnicity, gender, disability or
poverty, the effects of such exclusion foster astounding and deepening inequality among the socially deprived
group. Information and Communication Technology in all its appaludable wholeness could be a viable tool in
facilitating inclusive development. We are still far from achieving the desired levels of IT adoption in everyday
life owing largely to unresolved issues surrounding its applicability in most parts of the country. Thus, there
is a need for a greater thrust in the policy framework in India towards making IT an enabler and equalizer in
furthering inclusive development.
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IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE
COMMITMENT AND TURNOVER
ABSTRACT
Ms Pooja Jaiswal 1
Dr Archana Chandra2
Committed and loyal employees are the most influential factor for any organization. In the changing
business scenario companies and organizations face significant challenges in developing energized and
engaged workforces. Training and Development is the framework for helping employees to develop their
personal and organizational skills, knowledge, and abilities.. The right employee training, development
and education provides big payoffs for the employer in increased productivity, knowledge, loyalty, and
contribution to general growth of the firm. The training industry as a whole has shown significant growth
through the years.. The American Society for Training and Development found that in 2004 to 2013 the
average annual training expenditure per employee and number of formal learning hours per employee
has risen tremendously). As the investment in various training programs continue to rise, it becomes even
more imperative for employers to understand the impact that training has on their organization..
Evidence derived from research showed that there is now a broad agreement amongst commentators
that skills training improve employees’ commitment to the organization. Training from a company’s
perspective adds to human capital and also a means of securing workplace commitment. The theoretical
proposition therefore is that training will get employees more committed to the organization.
Organizational commitment when combined with job related behavioral commitment will lead to
organizational performance. In order to achieve a high level of performance, organizations now require
highly motivated and committed workers. This paper explored the relationship between training and
employees’ commitment to the organization.
This conceptual paper aimed at studying the effect of training on employee commitment and to provide
suggestion as to how firm can improve its employee commitment through effective training programs.
The research approach adopted for the study conforms to qualitative research, as it reviews the literature
and multiple case studies on the importance of training in enhancing the commitment and reducing the
turnover of the workforce. On the basis of the review of the current evidence of such a relationship,
offers suggestions for management in form of a checklist, appropriate for all businesses.
KEYWORDS: Training and development, Employee performance, Satisfaction, Employee
Commitment, Turnover
INTRODUCTION
In past organizations secured the loyalty of their employees by guaranteeing job security. However many
organizations have responded to competitive pressures by downsizing, restructuring and transformation and
thus created a less secured organizational climate. A growing number of employees feel that they are the
victims of broken promises. One of the challenges in the modern organizations involving employees work
commitment in the current business environment. The organization can achieve this by developing a new work
contract. In today’s workplace employees face more ambiguity in their daily activities and decreased job
security (Bergmann, Lester, De Meuse,&Grahn,2000).With no assurance of continued employment , workers
have now raised their expectations in other areas for instance employees want employers to show more
commitment in terms of pleasant working conditions , access to training and development ,provisions of a safe
working environment and a balance between work and employees commitments outside the work place .
Organizations are faced with ever increasing competition and as they prepare for new challenges one of the
key components of survival is maintaining and upgrading the organizations ability to use human resources
1
2
Research scholar, Sam Higginbottom Institute of Agriculture Technology and Sciences (SHIATS), Allahabad
Associate Professor , Sam Higginbottom Institute of Agriculture Technology and sciences (SHIATS), Allahabad
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effectively and efficiently. According to Katz (1964), employee behavior essential for organization
effectiveness includes employees (1) entering and remaining with the organization, (2) carrying out specific
role requirements, and (3) engaging in innovative and spontaneous activities that go beyond role perceptions.
The appointment of good workers is thus critical ,but of even greater significance of the organizations ability
to create a committed workforce , Hence the need for managers to understand the concept of commitment –
what it is ,how it operates , and most importantly , which behaviors are displayed by employees committed to
the organization .
Training and development is one of the modern management approaches in HRM. Emerging literatures have
shown that the investment in human capital such as training is positively related to organizational performance.
That is, training is expected to reduce turnover, and increase employee’s commitment, which will result in
longer employment duration. According to Keep (1989), training is a ‘vital component’ in organizational
process of cultural change, a behavioral device that can be used to secure workforce commitment and to realize
the potential of employees. For instant, Keep (1989) identified training and development investment as key
determinants of organizational performance and economic growth. Conventional wisdom also suggests that
investment in training and development are associated with a range of individual and organizational benefit.
The clear assumption is that the more the training given to employees, the better (Santos and Stuart, 2003).
However, training from a company’s perspective adds to human capital and also a means of securing
workplace commitment. Although the bottom line for most training and development activities is to improve
organizational performance, studies have shown that most organizations devote little attention to the evaluation
of training effectiveness. Keep et al., (2002) argue that investing in training constitutes a powerful signaling
device to reassure employees that they are valued by their employers, which in turn enhances their
commitments to the organization.
[1] To find out the impact of training and development practices on employee’s commitment and
[2] To find out the impact of training and development practices on employee’s turnover.
LITERATURE REVIEW
THE DETERMINANTS OF EMPOLYEE COMMITMENT
There is no general agreement as to what can increase an employee’s commitment to the organisation.
Commitment according to Jaw and Liu (2004) is not only a human relation concept but also involves
generating human energy and activating human mind. Without commitment, the implementation of new ideas
and initiatives will be compromised (Ramus and Steger 2000 cited in Jaw and Liu 2004). Human resource
system can therefore facilitate the development or organisational competencies through eliciting employees’
commitment to the firm (Arthur,1994). That is, organizations that have a fit with business strategy, structure
and practices and policy will perform better. Walton (1995) prescribed “commitment” as a distinctive strategy
for HRM whose positive effect will be felt. Organisational commitment is a psychological strength of an
individual’s attachment to organisation. Arthur (1994) reported a positive impact of using high commitment
human resource practices in managing firms’ productivity and retention. Real commitment fosters a high level
of individual learning, whereby the individual puts the organization’s need in front of their own. This could
also enhance cooperative team work to facilitate transfer of individual learning (Argyris, 1998). Committed
individuals align and mobilize themselves in actions directed at attaining organizational objectives, and they
also share organisational values. Jaw and Liu (2004) said that organizational learning is aimed at ensuring that
the organisation has competent employees with skills required to perform well. A learning organisation makes
use of best HRM approach so as to achieve positive learning attitudes, empowerment, encouraging
commitment, comprehensive training and performance emphasis. Firms that aspire to be learning
organizations teach their employees how to learn, share information and also reward them for doing so. Most
academic research on human resource management practices suggested that employees’ commitment will
increase organisational effectiveness by creating a condition whereby employees become highly motivated,
committed and involved in the organizational activities aimed at achieving organisational goals (Arthur 1994).
There are many models suggested by different authors for the employee commitment considering different
dimensions of commitment as commitment to support the goals of the organization, commitment to retain
organizational membership, desire for affiliation with organization etc but the models given by Meyer and
Allen and O’Reilly and Chatman –have generated most research and explain commitment in terms of
organization behavior is most important.
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A THREE COMPONENT CONCEPTUALISATION OF
COMMITMENT: MODEL DEVLOPED BY MEYER AND ALLEN
ORGANISATIONAL
According to Meyer and Allen (1991) organization commitment reflects at least three general themes:
Affective attachment to the organization, the perceived cost associated with leaving it and the obligation to
remain with it. These three approaches are referred to as affective, continuance and normative
commitment .Common to these three approaches is the view that commitment is a psychological state that
characterizes the employee’s relation with the organization and has implications for the decision to continue
membership of it. These psychological states also have different implications for the work relevant behavior.
Affective commitment: refers to the employee’s emotional attachment, identification with and involvement
in the organization Employees with a strong affective commitment continues employment with the
organization because they want to. According to. Mowday (1982) the antecedents of affective commitment
generally falls into four categories: (1) personal characteristics (2) structural characteristic (organizational) (3)
job related characteristics And (4) work experiences. In contrast to personal and organizational characteristics
a considerable amount of research has been conducted into the relationship between work experiences
variables and affective commitment .Work experience variables that have been found to correlate with
affective commitment include in reward distribution (Rhodes and Steers,1981) ,role clarity and freedom form
conflict (Glisson & Durick,1988) ,fairness of performance –based rewards and job challenges (Meyer &
allen1987),opportunity for advancement (O’Reilly & Caldwell, 1980) and participation in decision making
(Rhodes & Steers,1981). Research to date suggests that work experiences play the largest role in employee’s
decisions to remain with the organization.
Continuance commitment: Continuance commitment refers to the costs associated with leaving the
organization which include the threat of wasting the time and effort spent acquiring non transferable skills,
losing attractive benefits, giving up seniority based privileges, or having to uproot family and disrupt personal
relationships. Apart form the costs involved in leaving the organization, continuance commitment will also
develop as a function of a lack of alternative employment opportunities. Employees whose primary link to the
organization is based on continuance commitment remain because they need to.
Normative commitment: Normative commitment reflects a feeling of obligation to continue employment.
Wiener (1982) suggests that the feeling of obligation to remain with an organization may result from the
internalization of normative pressures exerted on an individual prior to entry into the organization (family or
cultural orientation) .However a normative commitment may also develop when an organization provides the
employee with rewards in advance or incurs significant costs in providing employment .Recognition of these
investments causes employees to feel an obligation to reciprocate by combining themselves to the organization
until the debt has been repaid (Scholl 1981) .
Training and Affective commitment
There is a significant body of literature that suggests that an individual’s identity is closely related to their
employment. In turn, training that serve’s to increase an employee’s identification with the organization is
likely to produce a more committed worker. Upon hire, training is typically one of the first human resource
practices that organizations offer to their new employees. Training plays an integral role in the socialization
process for many employees. Employees enter the employment relationship with many expectations and
desires. When these expectations and desires are fulfilled, then the employee is able to better identify with the
company. The result is an employee that becomes more committed. In turn, when a training program fails to
meet these expectations, then there is usually a negative attitude change. These unmet expectations can lead
to a decrease in commitment and a greater likelihood of turnover (Tannenbaum, Mathieu,Salas, and CannonBowers, 1991). A study of several British companies found that when training sought to enhance and develop
a “culture of identification” between the organization and the employee, the intention to search for another job
decreased substantially (Green et al., 2000 Japanese companies prefer to train employees internally in the form
of on-the-job training programs. The internal training provided in Japan is said to increase identification and
boost attachment. The result is an employee that is more committed to the organization (Lincoln and Kalleberg,
1996).
Training and continuance commitment As discussed earlier in this paper, an investment is a contribution
that an employee makes today in anticipation that the benefit and “pay off” will be achieved in the future In
many aspects, training is one such “side bet” that may increase employee investment and commitment. Gary
Becker (1993) tried to understand the cost and benefit equation related to the training in the mind of the
employees and identified two types of training – general training and specific training.
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General training is training that provides the worker with skill development not only applicable at the present
employer, but also at other firms throughout the labor market. Gary Becker’s model suggests that because
general training provides skill development that can be used at other companies, the employer will not invest
in it.. Companies do not no prefer to pay for general training and it is the workers themselves that will need to
bear this cost (Frazis and Spletzer,2005).In contrast, specific on-the-job training is training that increases the
workers productivity and output only at the company that provides it. The training is “specific” to that
particular company only. The thought is that because training is specific to the individual company and
nontransferable, the productivity of the worker increases for that particular company, but would remain the
same for any other organization within the labor market. As a result, it is unlikely that specific training would
result in turnover. Gary Becker’s argument essentially states that the more specific the training the less likely
turnover will occur. As the skills obtained are non-portable and non-transferable to other organizations, this
type of specific training is paid for by the employer. In turn, employees typically receive less pay during the
specific training period in anticipation of future wage increases.
By contrasting Becker’s model with a commitment approach one can see that the employee’s investment of
time and the anticipation of higher wages as potentially leading to an increase in commitment. Training in this
context becomes a “side bet”. The investment of time and effort expended during the training process is one
such factor that may enhance an employee’s commitment to the organization. . Regardless of the specificity
of the training, the time and effort that an employee puts forth in any training program can lead to a more
committed worker.
Along these lines, Krueger and Rouse (1998) found that general training and specific skills are many times
embedded in one another. They found that employees that attended training, regardless of its specificity,
became more invested employees. These employees were shown to seek more job upgrades, receive more
performance awards, and have better job attendance than those that did not attend training.
Training and Lack of Alternatives
Gary Becker Becker (1993) argues that general training, due to the portability of skills acquired leads to an
increase in turnover; while specific training, due to the non-transferability of skills acquired leads to less of an
impact on turnover. Holding aside the argument of the blending of general and specific training discussed
previously, Becker’s theory appears to directly apply to the role of training in limiting alternative employment
options. Lisa Lynch (1991) found that young workers that participated in formal and specific on-the-job
training were much less likely to terminate the employment relationship than workers that received off-thejob generalized training. Several studies examined the “cherry-picking” phenomenon where companies wait
until employees are trained by other organizations and once trained the employees are hired away to other
companies. It has been noted that organizations often prefer to “steal” these newly trained employees because
they will produce at a higher level (Glance et al., 1997). The company that pays for the training though is the
one that loses its entire investment should the employee be “stolen”. In the end, it is non-portable specific
training that is much more attractive to organizations as it eliminates the chance that the trained employee will
be “hired away” (Lynch & Black, 1998).Numerous other studies also support Becker’s human capital model
of training. Jeffrey Groen (2006) states that companies in small markets have a greater incentive to invest in
training that is company specific. Groen argues that as the market size expands training has a tendency to
become more general and the likelihood of turnover begins to increase. Frazis and Speltzer (2005) through an
analysis of the 1979 National Longitudinal Survey of Youth and various scholarly journals also found support
for Becker’s theory. The researchers found that employees that receive specific training have a lower
probability of quitting than employees who do not. The research shows significant support for Becker’s theory
of human capital. Many of the studies were highlighted above as they lend credence to the effect that training
can have on limiting an employee’s alternatives. All the studies conclude as Becker did, that the more specific
the training the less likely turnover will occur.
Training and Normative Commitment: Reciprocity essentially states that an employee will help the
company because the company helped them. This parallels the notion of the employee having a “sense of debt”
toward the organization. Research on this element of commitment indicates that training can play an integral
role in building a sense of debt to the company. Training that achieves reciprocity in the employee will foster
an individual’s commitment to the organization. Ronald Burke (1995) found that employees that participated
in the most number of training programs and rated the trainings they attended as most relevant, viewed the
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organization as being more supportive, looked at the company more favorably, and had less of intent to quit.
In this example, reciprocity holds that the employee received a “benefit” of training from the company and
will attempt to repay it in the future. In essence, the employee will need to remain committed to the
organization until the “benefit” is paid off (Scholl, 1981).Barrett and O’Connell (2001) clearly portrayed the
idea of reciprocity in their empirical research of organizations in Ireland. Barrett and O’Connell found that the
outcome of training depends on the effort that the participants put into it. The greater the sense of debt incurred
with the training program, the more of a return on the investment that organizations will secure from the
employee.
DETERMINANTS OF TURNOVER
Employee turnover is a much studied phenomenon. There is a vast literature on the causes of voluntary
employee turnover .By developing multivariate models that combine a number of factors contributing to
turnover and empirically testing the models researchers have sought to predict why individuals leave
organizations. However, over time there have been a number of factors that appear to be consistently linked to
turnover. An early review article of studies on turnover by Mobley et al (1979) revealed that age, tenure,
overall satisfaction, job content, intentions to remain on the job, and commitment were all negatively related
to turnover (i.e. the higher the variable, the lower the turnover). In 1995, a meta-analysis of some 800 turnover
studies was conducted by Hom and Griffeth, which was again updated (Griffeth et al, 2000) confirmed some
well-established findings on the causes of turnover. These include: job satisfaction, organizational
commitment, comparison of alternatives and intention to quit.
TRAINING AND TURNOVER:
Martin (2003) detected a complex relationship between turnover and training. He suggested that
establishments that enhance the skills of existing workers have lower turnover rates. However, turnover is
higher when workers are trained to be multi-skilled, which may imply that this type of training enhances the
prospects of workers to find work elsewhere. The literature on the link between lower turnover and training
has found that off-the-job training is associated with higher turnover presumably because this type of training
imparts more general skills (Martin, 2003).
Impact of training on mobility In a British study examining the impact of training on mobility, Green et al
(2000) concluded that, in aggregate, training has on average no impact on mobility. However, training that is
wholly sponsored by the individual (or their families) is on balance likely to be a prelude to job search. In
contrast, when employers pay for training the downward effect on mobility is more likely. Lynch (1991, 1992)
concluded that both on-the-job and off-the-job training have a significant effect on job mobility. While formal
on-the-job training reduces the likelihood of mobility, particularly for young women, off-the-job training
increases the likelihood of mobility. In a study of six local labour markets in Britain, Elias (1994) found that
women who received employer-provided and job-related training had a lower probability of changing
employer or making the transition to non-employment, but for men training made no significant difference to
this type of turnover.
Effect of vocational training In a study examining the effect of apprenticeships on male school leavers in the
UK, Booth and Satchell (1994) found that completed apprenticeships reduced voluntary job-to-job, voluntary
job-to-unemployment and involuntary job termination rates. In contrast, incomplete apprenticeships tended to
increase the exit rate to these destinations relative to those who did not receive any training. Winkelmann
(1996) reported that in Germany apprenticeships and all other types of vocational training reduce labour
mobility in spite of the fact that the German apprenticeship training is intended to provide general and thus
more transferable training.
Career commitment Chang (1999) examined the relationship between career commitment, organizational
commitment and turnover intention among Korean researchers and found that the role of career commitment
was stronger in predicting turnover intentions. When individuals are committed to the organization they are
less willing to leave the company. This was found to be stronger for those highly committed to their careers.
The author also found that employees with low career and organizational commitment had the highest turnover
intentions because they did not care either about the company or their current careers. Individuals with high
career commitment and low organizational commitment also tend to leave because they do not believe that the
organization can satisfy their career needs or goals. This is consistent with previous research that high career
committers consider leaving the company if development opportunities are not provided by the organization.
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However, this group is not apt to leave and is likely to contribute to the company if their organizational
commitment is increased. Chang E. (1999) found that individuals become affectively committed to the
organization when they perceive that the organization is pursuing internal promotion opportunities, providing
proper training and that supervisors do a good job in providing information and advice about careers. A study
was done on the effect of training on employee retention by Waleed Hassan, Amir Razi in telecommunication
sector in Pakistan .He considered four variables- types of training and duration of training rewards and
supervisory support. Duration defined the effectiveness of training programs. . Rewards, especially financial
rewards have received highly positive feedback from the females. Supervisory support has also a crucial role
to play in employee retention according to the research findings. Female employees consider supervisory
support and financial rewards more important for them as compared to men.
METHODOLOGY
The research approach adopted for the study conforms to qualitative research, as it reviews the literature and
multiple case studies on the importance of training in enhancing the commitment and reducing the turnover
of the workforce. On the basis of the review of the current evidence of such a relationship, offers suggestions
for the top management in form of a checklist, appropriate for all businesses
FINDINGS AND ANALYSIS
In order to use training as a mechanism to build commitment, organizations need to ensure that trainings are
relevant, are communicated effectively, and are able to meet the expectations of the employees participating.
Organizations also need to strategically determine who is going to pay for the training. Payment made by the
employee or by the organization may lead to two very different outcomes. Companies need to be aware of the
consequences of each approach. General training, which is transferable to other organizations, would likely be
paid for by the employee. Company specific training, on the other hand, would likely be paid for by the
company as the skills acquired are non-portable. For organizations that are able to invest in purely specific
training, the specificity of the skills developed may result in limiting alternative employment options for
workers. This will serve to enhance and increase employee commitment. As a result, companies may be more
open to paying for this type of specific training as they are able to recoup their investment (Becker,
1993).Along these lines many practitioners have had significant difficulty distinguishing between purely
specific and purely general training. Much of the research has shown that general and specific training are
often enmeshed in one another. Understanding this would lend credence to the opinion that organizations
invest, knowingly or unknowingly, in some level of general training. Research has found that when
organizations invest in general training and reciprocity grows there is an increase in employee commitment.
Employees view this type of investment as a “gift”. As a result of the “gift”, they begin to perceive themselves
as “insiders” into the company. In turn a company’s investment in general training can ultimately increase
commitment and decrease turnover (Barrett and O’Connell, 2001). When training is tied into other human
resource commitment practices, company funded general training will lead to an increase in commitment
(Green et al., 2000).Training is a tool that can assist organizations in building a more committed and productive
workforce. By helping to establish employee investment, reciprocity, identification, and by limiting alternative
employment options, an effective training program can lead to greater commitment and less employee
turnover. The result is an organization that is more productive and professional. Although training can play a
major role in this process, organizations need to look at additional work force strategies and practices that can
enhance commitment. Training alone may offer many benefits but a much greater impact will be found when
using a strategy to human resources that entails many different organizational commitment practices and
policies. Organizations need to strategically and methodically develop human resource practices that are
designed to fully achieve commitment (Heyes et al., 1996). Based on the principles identified throughout this
paper, an effective training program is one such organizational practice that can lead to greater employee
commitment and a more stable workforce
CONCLUSION
The main purpose of this paper is to investigate the effect of training on employees’ commitment and turnover
organization. Training is one of several human resource practices that can have a considerable impact on
employee commitment. As stated throughout this paper the three component conceptualization of
organizational commitment: model developed by Meyer and Allen training that seeks to improve employee
investment, increase reciprocity, helps the employee identify with the organization, and serves to limit
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alternative employment options will enhance the employee’s commitment to the company. The result of this
will be an organization that is better able to retain its workforce, high commitment and fewer turnovers.
It is a common factor found in this paper that establishments that enhance the skills of existing workers have
lower turnover rates. However, turnover is higher when workers are trained to be multi-skilled.. The payment
of training also has effect on employee turnover rates. So companies need to design their training practices
strategically. The author also found that employees with low career and organizational commitment had the
highest turnover intentions.. Individuals with high career commitment and low organizational commitment
also tend to leave because they do not believe that the organization can satisfy their career needs or goals.
Companies taking care of the personal career of employees with their interest also achieve good retention rates.
Types of training and duration of training rewards and supervisory support are also important factors in
employee turnover decisions, .The main factors that need to be kept in mind with the training is that training
should create job satisfaction ,commitment to the career , and create the environment that the employees need
not search other opportunities elsewhere. Based on the principles identified throughout this paper, an effective
training program is one such organizational practice that can lead to greater employee commitment and a more
stable workforce.
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SOCIAL MEDIA AND HEALTH CARE
ABSTRACT
Dr. Ankita Doneriya 1
Dr. Anurup Doneriya2
The tremendous growth of the internet in India, coupled with the latest developments in internet
communication technologies has made a compelling case for the use of new media for development
communication especially health communication. New media can be used to create and sustain
communication channels between the health practitioners and the masses.
The rise of social media, especially social networking platforms like facebook, twitter etc. Has redefined
the way people communicate with each other. Communication structures have become dynamic and
facilitate peer-peer interaction which was not possible through traditional media. Rather than consuming
information, people are engaging in conversations at various levels.
The development in technology has led to the development of sophisticated communication devices and
led to media convergence where information is increasing available through a single device. Due to all
these developments, countries have turned their focus towards 'e-development' and a lot of edevelopment projects including 'e-health' are being launched all over the world. Though, a few 'e-health'
initiatives have been taken up in India, but the projects are still in their nascent stages as far as online
health communication is concerned. Most of the projects that have been initiated are tele-medicine
projects focussed on medical transcriptions and health awareness. The exploratory study is aimed at
studying the health communication needs of the people of the country and the features that people would
like while accessing health information through new media.
INTRODUCTION
The increasing penetration of new media indicates how these technologies can be used for the betterment of
public health if implemented efficiently. Essentially, new media can be defined as a culmination of digital
media like mobile phones and web 2.0 technologies.
According to (Poynter & Lawrence, 2007) "Web 2.0 is a label that encompasses a wide variety of terms and
activities, such as: social networks (e.g. MySpace, Bebo, FaceBook, twitter etc.), blogs, forums and chat,
product review sites (e.g. Ciao and Kelkoo), user generated content such as YouTube and Flickr, citizen
journalism, and co-creation. For some people the essential elements of Web 2.0 are that it is bottom-up,
inclusive, and collaborative, whilst for others it is the technology that has made the Web more usable, such as
AJAX." The internet in particular, is an important communication medium. It has multiple functionalities and
can facilitate peer-to-peer interaction since it enables the formation of social networks. Mobile Phones on the
other hand provide more scope for personal interaction through the use of SMS (short messaging service) and
other Value added Services.
The power of internet as a communication media can be gauged from the online advertising spends of the
various industries as compared to other forms of media. Even businesses have realized the important of the
internet as a communication medium and are increasingly using new media to reach out to prospective
customers. New media can help facilitate interaction between the government, health care organizations and
health consumers and enable the government to update health related information quickly and efficiently. "EHealth" applications which can include websites, weblogs, forums, social media platforms as well as mobile
applications tailored specifically to disseminate health related information can be used to tackle the growing
health related issues in the country.
The growth of Information Communication technologies in the country has led the country to launch a lot of
e-projects for development purposes, the most notable services being "E-Seva" launched by the government
1
2
Assistant Professor – LNCT Indore
Director – Indoinet Software Pvt. Ltd
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of Andhra Pradesh. E-Seva allows the citizens to access information about basic services like water, electricity
etc. and manage them in a virtual environment. Another important project launched by the government is
FRIENDS (Fast Reliable Instant Efficient Network for Disbursement of Services)
Though a number of e-projects have been initiated for development purposes, no major digital communication
initiatives have taken place in domain of health care. The digital divide between the developed countries and
India, in terms of health care communication in India seems to be huge since a lot of 'e-health' projects have
been launched abroad. Though the new media divide seems to be huge, it can be tackled effective. Internet
access is growing at a rapid rate in India. Mobile phones have reached almost every household in the country
and have eliminated the need for landline based phones. Satellite Internet connections and broadband
connections are also increasing at a rapid rate paving the way for more interactive technologies to come in.
The communication industry, as well has started giving far more importance to new media than it used to a
few years ago. With the shifting of the focus from the marketer and consumer and the constant need of
interacting and building relationships with the consumer, new media seems to be the most effective way of
engaging with the consumer. Therefore, the role of new media for health care communication in India cannot
be overlooked.
LITERATRURE REVIEW
The Rise of Internet and New Media
In India, Media is consumed with the help of three types of communication devices – the television set, the
mobile phone and the computer each of which can be used for multiple entertainment and media purposes
(Koner & Goyal, 2010). Computers these days are mainly used for accessing the internet and various other
entertainment purposes like playing video games, watching movies, listening to music etc. Mobile devices
have transformed from being simple voice communication devices to being entertainment devices and are used
for listening to music, watching videos and accessing the internet. Increasingly, internet is being used more
like traditional media.
Since the world is moving more and more towards digital technologies the opportunities for organizations to
communicate with the consumer have increased dramatically (Mulhern,2010).The definition of media has
broadened to include a vast variety of digital experiences like – watching an online move, playing video games,
communicating with friends. Digital media has opened up vast opportunities for communication that tradition
media could never think of. Add to that the cost effectiveness of the digital medium as compared to traditional
media and the multi-functionality it offers new media is increasingly looking like the future of communication.
Motivations and Reasons behind Internet Use
A study done by (Roy, 2007) finds out the motivations behind internet use in the Indian context. According to
Roy, the main gratifications for internet use for the Indian consumer are user-friendly, self-development,
educational opportunities, convenience in communication, and enhancement of self-development, wide
exposure, global exchange and relaxation. The internet, with its increasing penetration in India has the ability
to improve health communication structures by providing convenient access to information but it cannot be
considered alone and should always be used as a support function to other forms of media.
The use of internet by health care audience makes a strong case for the use of new media as part of all intended
health communication strategies especially in those areas where the use of the technology is widespread.
Similarly, areas which do not have access to such technology, social outcomes of the health campaigns should
inspire the use of digital communications strategies. (Schiavo, 2007).
The web is being widely accepted as a very crucial medium for getting health information and services. Online
technologies can be used to communicate with health care practitioners, purchase medicines, participate in
behavioural change programs and get a lot of other information relevant to one's health and well being (Rains,
2008)
"Not only is the variety of health information expanding on the Internet, but this digital health information is
becoming increasingly mobile. For example, Apple.com's iTunes, an online media store, provides free podcast
sessions from numerous health information sources, including the Centers for Disease Control and Prevention,
the Mayo Clinic, Harvard's School of Medicine, the World Health Organization, the Public Broadcasting
Service and HealthBeat, and The Johns Hopkins Bloomberg School of Medicine
(http//www.apple.com/itunes/). Many of these large health institutions are also offering podcasts and RSS
feeds directly to their users from their respective websites." (Della, Eroglu, bernhardt, Edgerton, & Nall, 2008)
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New Media can be considered as a hybrid form of media which derives from both interpersonal and mass
communication based theories. Technological integrations should help engage and retain customers therefore,
concepts such as two way communication, customization, and constant interaction are central to an effective
health communication strategy.
(Della, Eroglu, bernhardt, Edgerton, & Nall, 2008) Also suggest that successful health campaigns require an
integrated communication strategy which is a combination of both interpersonal and mass communication
theories appended with data based media planning. Unlike mass media which is a simple one-to-many model,
new media associations can range from one-to-one to many-to-many to even more complex relationships
(Crosbie, 2006). Therefore, health marketers would need a solid grounding of mass communication as well as
inter-personal communication strategies. Also, the new media platform not only gives the marketer an
opportunity to disseminate messages through fresh media vehicles it also gives an opportunity to the consumer
to choose the content and information according to his own need (Crosbie, 2006).
The concept of "E-Health"
Primary health Care (PHC) is a very important part of a national health care delivery system especially in
developing countries with a large rural where majority of the population relies on the government for health
care. The various PHC related problems viz. tracking the progress of people affected by tuberculosis require
regular monitoring and reporting of data. Apart from that there are situations where non-routine reporting of
data is necessary like in case of an epidemic. It is being increasing noticed that Information Communication
Technologies have immense potential in supporting both forms of communication (Madon, Sahay, & Sudan,
2007)
"Electronic health (e-health) refers to the delivery of health care with support from various information and
communication technologies, such as the electronic health record(EHR), telemedicine, clinical decision
support, and computerized provider order entry systems" (Eysenbach, 2001).
India is still in its nascent stage as far as "e-health" is concerned and most of the e-health initiatives are limited
to telemedicine, health portals and hospital information management system. In spite of the mobile devices
being available in almost each and every household in the country, there are again no instances of the use of
mobile media for the use of health communication in the country.
The chief objective of the study is to measure the scope and effectives of new media in health care
communication in India, further classified as:
[1] To understand the consumer needs towards health care communication in India
[2] To observe and evaluate the effectiveness of the various "E-Health" initiatives taken by the Country
Very little research work has been done in the field of new media in India and the work is even less when we
talk about the use of new media technologies for health care communication in India. The research is
exploratory in nature since the topic requires an in-depth understanding of the various parameters involved in
the domains of health care information. Qualitative Research comprised of discussion guide derived from
secondary research primarily the review of literature. The sample size included 15 Health Care professionals,
15 New Media experts.
RESULTS
In-Depth interviews were conducted as part of the study. In total fifty in-depth interviews were conducted, five
with health practitioners which included predominantly doctors, medical students and academicians in the field
of health communication. The other five interviews were conducted with new media professional working in
the field of internet and health marketing and forty new media users.
Health Practitioners
The basic idea behind interviewing health practitioners was to get useful insights about the health
communication needs of the people and how new media can be a solution for some of the needs. They were
also interviewed about their own new media consumption habits and the ways in which they are using new
media for health communication. The questions were exploratory in nature and were asked from the health
practitioners and the patient's perspective. They were also asked to give their views on the kind of 'e-health'
initiatives that have been launched by the various government organizations and how they have incorporated
new media in their profession to disseminate health related information. They were also asked to give insights
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into what kind of health related information would their patients like to access online and how should the
information be provided to them.
New Media Professionals
New Media Professionals were interviewed to get an insight into the business of new media. They were asked
about the various industries wise ad spends and the status of health advertising as compared to other sectors
like Banking and Financial Services, ITES, Education etc. They were also asked whether they had encountered
any significant online health campaigns during their time working in the field of new media and whether health
agencies had approached them to launch health related campaigns.
The main insights that came out of the in-depth interviews are as follows:
 Health Practitioners mainly use new media for knowledge enhancement purposes and to get
information about the latest treatments available in the global market, new modality in diagnosing
diseases, latest development in medicines and newer ways of prevention of diseases and public
hygiene. They would also like to get information about diseases that have not affected India as yet but
are likely to affect the country in a few years.
 A lot of health practitioners are using new media as a tool for disseminating health related information
and most have personal web portals in accordance with their field of practice.
 Most of the online health campaigns that they have encountered are about mass communicable
diseases like pulse polio, HIV aids, anti-smoking etc. but there is still scope for a lot of improvement.
 Health Practitioners are of the opinion that patients would like to get information about problems that
directly affect their personal lives and lifestyle.
 Another insight was that the patients are apprehensive about using online information for health related
purposes due to trust and reliability issues and also due to the fact that online health information has a
lot of technical terms that the patients find hard to understand.
 Some of the health practitioners were themselves apprehensive of the use of new media for health
related purposes due to the tendency of patients to do 'self-diagnosis' and they would like to have
online health portals be accredited from a certified health organization.
 Social Networks came across as an important tool for communication and a lot of health practitioners
were of the opinion that facebook pages by doctors where patients could ask questions would be a
good step.
 According to new media professionals the major sectors that used new media for advertising were
BFSI, AUTO, Consumer Durables and Dot com Businesses. Health Advertising was almost negligible
forming about 1-2% of the total advertising spends.
 There were hardly any online health campaigns that have been launched by health organizations.
 Online health communication should comprise of information about day-to-day life problems, lifestyle
related questions and information about medicines as people would like to take second opinion about
the medicines that are being prescribed about.
 A new media professional also talked about how new media could help make health care management
more convenient by giving facilities like booking doctors and hospitals online.
Based on the findings of the In-depth interviews it was revealed that people normally look for health
information regarding respondents were asked to choose their major health related needs and what kind of
health information they would like to access through new media. Respondents were asked to choose from
amongst the following parameters.
 Lifestyle Related Diseases
 Information about epidemics and mass communicable diseases
 Information regarding Nutrition
 Information about the latest treatments
 Information about medicines (uses, compositions, side-effects etc.
 Information about hospitals
 Information about doctors
 Travel related health information
 Information regarding pregnancy and childcare
 Information regarding sexual health
 Fitness Related Information (Weight Gain, Weight Loss etc.)
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

Information about national health campaigns (pulse polio, anti-smoking etc.)
After data collection and analysis the following results were obtained
CONCLUSION
Data Analysis and secondary research revealed a lot of interesting facts about the behaviour of the people
while accessing health related information using new media. It was found that the main reasons for people to
access health related information on the internet was finding out solution to the problems that are more likely
to affect them rather than generic problems. Since most of the new media users in India are urban or primarily
from Tier 1 and Tier 2 cities getting information about lifestyle related problems was their major concern.
Also, due to increasing globalization a lot of disease like Swine Flu (H1N1) virus have reached India and being
aware about these mass communicable diseases and hence, be prepared for any outbreaks is another major
information area for the people. Nutrition and fitness related information is also sought after as people consider
these of prime importance because of their hectic schedule and stress filled lifestyles. After finding out the
major information areas for people while accessing health related information, the study monitored the existing
'e-health' infrastructure in the country and it was found that major concerns of the people were not being
addressed, in fact the existing 'e-health' infrastructure especially public infrastructure in still practically nonexistent as compared to other nation like the U.S.A and Europe. The 'e-health' infrastructure in the country is
mainly limited to health awareness portals and some telemedicine projects most of which are irrelevant from
the point of view of the end consumer. The only beneficiary of such projects, if at all is the health practitioner
since the information is mostly technical and largely irrelevant as far as the patient is concerned. The
information on these portals is largely text based, technical and non-interactive. It was also found that the
country's private 'e-health' infrastructure is mare more developed as compared to the public infrastructure but
a lot of drawbacks were still visible. The biggest problem that emerged as far a private 'e-health' was concerned
was the genuineness of the information as all the 'e-health' websites had a lot of sponsored content which was
making the public apprehensive about the quality of the information provided on these sites.
Credibility
People do not consider the information on the internet to be reliable and trustworthy since most of the people
access such information through private health portals and large quantities of advertisements and sponsored
information on these websites has made new media users apprehensive. Also, it is not possible to trace the
source of such information and most of the information that is available is not approved or accredited by
government health organizations which would go a long way in establishing a sense of trust in the information
being provided.
Customization
Most of the respondents felt that the information on these web portals was not India specific or not customized
according to their preference not only in terms of content but also in terms of how the information was
presented. The main reason for such an issue is that the content is not being generated by health care
professionals, but being regenerated from other successful 'e-health' websites in other countries. But this
approach is not correct since the lifestyle, culture and the problems of the people of each country are different
and hence, localized information is required. Also, at a microlevel, patients might have different problems and
the information that is provided might not be relevant to everyone who accesses that information. Respondents
also felt that the most of the 'ehealth' websites do not give the user a facility to ask questions which are an
important feature since people have specific issues and hence, require guidance according to the problem they
are facing.
Difficulty of Access:
Most of the health related content that is available on the internet was largely text based and highly technical
which is difficult to understand. The information is rarely supplemented with more interactive features like
audio, video and images that make the information more interesting as well as easy to understand. Also, it was
revealed through the study that most of the people do not access any specific 'e-health' portal on the internet
but use a search engine to look for search engine. Since, most of these websites are not optimized according
to the search engines relevant information hardly ever reached the end user. Most of the information that they
come across is sponsored information which may or may not be trustworthy.
Confidentiality
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People are normally uncomfortable while asking health related question especially when it is about their sexual
health and hence, most of the respondents were concerned about the fact health portals might not maintain
their anonymity and privacy. Privacy and anonymity are two separate concerns; privacy means that the user
looking for health related information on the internet would like the fact that nobody else can know about the
information they seek or the questions they ask. Anonymity would mean that the people who are looking for
health related information would like to keep their identity hidden from the owner of the platform.
These are the primary concerns that need to be taken care of while providing a platform for online health
information. Apart from this, the respondents were also asked to give their opinion on the kind of features they
would like to see in an ideal health portal or an online health communication platform. The main features that
the respondent felt should there were
 There should be a mechanism in place to ensure that the information available on 'e-health' platforms
is reliable and credible and accredited by certified authorities. The purpose of the portal should be to
provide information rather than endorsing sponsored information for monetary purposes.
 Information should not have technical jargon and content should be generated keeping the end
consumer in mind. Information should be easily searchable in case the user uses a search engine to
find the information he needs
 Information should be interactive and well supported by AV features like audio, video and sound. This
would make the information interesting and easier to understand. There should be a facility where
patients can ask question and get responses regarding their problems from certified health
practitioners.
 There should also be a guide to various doctors and hospitals and their specialities. Booking facilities
for hospitals and doctors can also be provided. All these features should be kept into consideration
while launching any 'e-health' initiative.
Respondents were also asked their preferred platforms for accessing health related information on the internet.
Though a lot of respondents considered the web portal as the most preferred platform for communication, there
were considerable representation for platforms like social media, video podcasts and mobile phones. There
online health portals should not be one-dimensional and consider the use of social media platforms and mobile
devices as a support function for the web portal. Social media platforms are quite important since they facilitate
peer-peer interaction, and enable the users to converse with each other. This can be quite useful since a lot of
people considered learning about the experiences of other people with similar health related problems an
important feature for online health portals. This feature can be efficiently exploited using social media
platforms since these platforms facilitate two way communications and are also easy to monitor. The mobile
device is another important platform that can be used especially when communication to an older working
population as these people would like to access health related information on the go due to lack of time. Also,
this is the population that would have the kind of sophisticated phones that would be required for such
communication.
BIBLIOGRAPHY
[1] Crosbie, V. (2006, April). What is 'new media'? Digital Deliverance Blog .
[2] Della, L. J., Eroglu, D., bernhardt, J. M., Edgerton, E., & Nall, J. (2008). Looking to the Future of New Media in Health
Marketing: Deriving Propositions Based on Traditional Theories. Health Marketing Quarterly, Vol. 25(1/2) .
[3] Eysenbach, G. (2001). What is e-health? Journal of Medical Internet Research(3:2) .
[4] Poynter, R., & Lawrence, G. (2007). Insight 2.0: new media, new rules, new insight. ESOMAR Annual Conference, Berlin .
[5] Koner, J., & Goyal, P. (2010). A Comprehensive Study on Changing Trend in Electronic Media in India. IUP Journal of
Business Strategy , 14.
[6] Madon, S., Sahay, S., & Sudan, R. (2007). E-Government Policy and Health Information Systems Implementation in Andhra
Pradesh, India: Need for Articulation of Linkages Between the Macro and the Micro. The Information Society, 23 , 327-344.
[7] Mulhern, F. (2010). Integrated marketing communications: From media channels to digital connectivity. Journal of
Marketing Communications , 18.
[8] Rains, S. A. (2008). Health at High Speed : Broadband Internet Access, Health Communication, and the Digital Divide.
Communication Research .
[9] Roy, K. S. (2007). Internet Uses and Gratification Structure. ICFAI Journal of Management research , 1-22.
[10] Schiavo, R. (2007). The rise of e-health: Current trends and topics on online health communications. Journal of Medical
Marketing Vol. 8, 1 .
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ABSTRACT
Manisha Gupta 1
Dr. Archana Chandra2
Employee satisfaction refers to the employee’s sense of well-being within his or her work environment.
It is the result of a combination of extrinsic rewards, such as remuneration and benefits, and intrinsic
rewards, such as respect and appreciation. Positive changes in the HRM systems and the way in which
managers and supervisors interact with staff on personnel issues can increase the level of employee
satisfaction. While a high level of employee satisfaction cannot be absolutely tied to higher levels of
retention, motivation and performance, a low level of employee satisfaction is a definite source of low
levels of performance. The concept of employee satisfaction is a multi-dimensional and inter disciplinary
term that has been attracted the attention of researchers and practitioners from different disciplines such
as psychology, human resource management, organizational behavior, TQM and so forth. Hence overall
employee satisfaction describes a person’s overall affective reaction to the set of work and work-related
factors whereas the facets of job satisfaction involve workers’ feelings toward different dimensions of
the work and work environment..
KEYWORDS: employees' satisfaction, organization, job satisfaction
INTRODUCTION
Employee is one of the key factors of the organization success. No organization can succeed without a certain
level of commitment and effort from its employees. Organizations’ often attempt to satisfy its employees to
gain their commitment and loyalty. However, it is not easy for the organizations to be successful in making
individual satisfied because people work for a wide variety of different reasons, some want material success
while others might emphasize job challenging. From an individual standpoint, job satisfaction might be one of
the most desirable outcomes that employees could obtain.
People management is an important aspect of organizational processes. This emanated from the recognition
that the human resources of an organization and the organization itself are synonymous. A well-managed
business organization normally considers the average employees as the primary source of productivity gains.
These organizations consider employees rather than capital as the core foundation of the business and
contributors to firm development. To ensure the achievement of firm goals, the organization creates an
atmosphere of commitment and cooperation for its employees through policies that facilitate employee
satisfaction. Satisfaction of human resource finds close links to highly motivated employees. Motivated
employees then develop loyalty or commitment to the firm resulting to greater productivity and lower turnover
rates.
OBJECTIVE
[1] To study the factors that affects employee’s satisfaction.
[2] To study the Consequences Of employee’s satisfaction.
BACKGROUND
The concept of employee satisfaction has been a focus for research and practice for the last two decades in
particular (Greasley, et. al., 2005) and considered to be a critical issue for Organizational performance. A
number of scholars and management “gurus” stressed the importance of employee satisfaction and its
influences on organizational performance as much as customer satisfaction (Chen, et. al., 2006).
1
Research Scholar, Joseph School of Business Studies, Sam Higginbottom Institute of Agriculture Technology &
Science, (Deemed-to-be University) ;Allahabad
2
Associate Professor, Joseph School of Business Studies, Sam Higginbottom Institute of Agriculture Technology &
Science, (Deemed-to-be University) ;Allahabad
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Most of the definitions emphasize the importance of employees’ job-related perceptions that link the
expectations of them and what they receive in return. Some researchers focus on the overall job satisfaction or
even life satisfaction of employees (Judge, et. al, 2005) whereas some others underline a variety of satisfaction
facets such as satisfaction with pay, promotion, supervisor, or co-workers.
FACTORS AFFECTING EMPLOYEE’S SATISFACTION
The factors affecting job satisfaction can be divided into two main areas, namely, personal determinants and
organizational factors (Nel et al., 2004).
A. Personal Determinants
The personal determinants also help a lot in maintaining the motivation and personal factors of the employees
to work effectively and efficiently. Employee satisfaction can be related to psychological factors and so
numbers of personal variables determine the employee satisfaction of the employees. Following these 7
variables comes in this category:1. Emotion
Mood and emotions form the affective element of job satisfaction. Moods tend to be longer lasting but often
weaker states of uncertain origin, while emotions are often more intense, short-lived and have a clear object
or cause. Some research suggests moods are related to overall job satisfaction. Positive and negative emotions
were also found to be significantly related to overall job satisfaction. Frequency of experiencing net positive
emotion will be a better predictor of overall job satisfaction than will intensity of positive emotion when it is
experienced.
2. Genetics
It has been well documented that genetics influence a variety of individual differences. Some research suggests
genetics also play a role in the intrinsic, direct experiences of job satisfaction like challenge or achievement
(as opposed to extrinsic, environmental factors like working conditions). One experiment used sets of
monozygotic twins, reared apart, to test for the existence of genetic influence on job satisfaction. While the
results indicate the majority of the variance in job satisfaction was due to environmental factors (70%), genetic
influence is still a minor factor. Genetic heritability was also suggested for several of the job characteristics
measured in the experiment, such as complexity level, motor skill requirements, and physical demands.
3. Personality
Some research suggests an association between personality and job satisfaction. Specifically, this research
describes the role of negative affectivity and positive affectivity. Negative affectivity is related strongly to the
personality trait of neuroticism. Individuals high in negative affectivity are more prone to experience less job
satisfaction. Positive affectivity is related strongly to the personality trait of extraversion. Those high in
positive affectivity are more prone to be satisfied in most dimensions of their life, including their job.
Differences in affectivity likely impact how individuals will perceive objective job circumstances like pay and
working conditions, thus affecting their satisfaction in that job. The personality of an individual can be
determined by observing his individual psychological condition. The factors that determine the satisfaction of
individual and his psychological conditions is perception, attitude and learning.
4. Expectation:
The expectation level of employees affects their satisfaction level. If one receives more outcome than expected
then he will be highly satisfied and vice-versa.
5. Age:
Age can be described as noteworthy determinants of employee satisfaction. It is because younger age
employees possessing higher energy levels are likely to be having more employee satisfaction than older age
employees.
6. Education:
Education plays a significant determinant of employee satisfaction as it provides an opportunity for developing
one’s personality. Education develops and improvises individual wisdom and evaluation process. The highly
educated employees can understand the situation and assess it positively as they possess persistence, rationality
and thinking power.
 Highly educated employees possess rationality and thinking power.
 Education develops individual wisdom and evaluation process.
7. Gender Differences
The gender and race of the employees plays important determinants of employee satisfaction Women, the
fairer sex, are more likely to be satisfied than their counterpart even if they are employed in same job.
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B. Organizational factors
The organization determinants of employee satisfaction play a very important role. The employees spend major
part of their time in organization so there are number of organizational variables that determine employee
satisfaction of the employees. The employee satisfaction in the organization can be increased by organizing
and managing the organizational variables or organizational factors. Fallowing these 10 variables comes in
this category:1. Working Environment & Condition
Because employees spend so much time in their work environment each week, it's important for companies to
try to optimize working conditions. Such things as providing spacious work areas rather than cramped ones,
adequate lighting and comfortable work stations contribute to favorable work conditions. Providing
productivity tools such as upgraded information technology to help employees accomplish tasks more
efficiently contributes to job satisfaction as well. Employees are highly motivated with good working
conditions as they provide a feeling of safety, comfort and motivation. On contrary, poor working condition
brings out a fear of bad health in employees. The more comfortable the working environment is more
productive will be the employees.
2. Workload and Stress Level
Dealing with a workload that is far too heavy and deadlines that are impossible to reach can cause job
satisfaction to erode for even the most dedicated employee. Falling short of deadlines results in conflict
between employees and supervisors and raises the stress level of the workplace. Many times, this environment
is caused by ineffective management and poor planning. The office operates in a crisis mode because
supervisors don't allow enough time for employees to perform their assigned tasks effectively or because staff
levels are inadequate.
3. Respect from Co-Workers
Employees seek to be treated with respect by those they work with. A hostile work environment -- with rude
or unpleasant coworkers -- is one that usually has lower job satisfaction. In an August 2011 survey published
by FoxBusiness.com, 50 percent of those responding said they had personally experienced a great amount of
workplace incivility. Fifty percent also believe morale is poor where they work. Managers need to step in and
mediate conflicts before they escalate into more serious problems requiring disciplinary action. Employees
may need to be reminded what behaviors are considered inappropriate when interacting with coworkers.
4. Communication overload and communication under load
One of the most important aspects of an individual’s work in a modern organization concerns the management
of communication demands that he or she encounters on the job. Demands can be characterized as a
communication load, which refers to “the rate and complexity of communication inputs an individual must
process in a particular time frame.” Individuals in an organization can experience communication over-load
and communication under- load which can affect their level of job satisfaction.
5. Organization Development
Organizational development is an ongoing, systematic process to implement effective change in an
organization. Its objective is to enable the organization in adopting-better to the fast-changing external
environment of new markets, regulations, and technologies. It starts with a careful organization-wide analysis
of the current situation and of the future requirements In other words we can say that Organization development
is the process through which an organization develops the internal capacity to most efficiently and effectively
provide its mission work and to sustain itself over the long term. This definition highlights the explicit
connection between organizational development work and the achievement of organizational mission.
6. Policies of Compensation and Benefit
This is the most important variable for employee satisfaction. Compensation can be described as the amount
of reward that a worker expects from the job. Employees should be satisfied with competitive salary packages
and they should be satisfied with it when comparing their pay packets with those of the outsiders who are
working in the same industry. A feeling of satisfaction is felt by attaining fair and equitable rewards.
7. Promotion and Career Development
Promotion can be reciprocated as a significant achievement in the life. It promises and delivers more pay,
responsibility, authority, independence and status. So, the opportunity for promotion determines the degree of
satisfaction to the employee.
8. Job Security
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Job security is an employee's assurance or confidence that they will keep their current job. Employees with a
high level of job security have a low probability of losing their job in the near future. Certain professions or
employment opportunities inherently have better job security than others; job security is also affected by a
worker's performance, success of the business and the current economic environment.
9. Relationship with Supervisor
Effective managers know their employees need recognition and praise for their efforts and accomplishments.
Employees also need to know their supervisor's door is always open for them to discuss any concerns they
have that are affecting their ability to do their jobs effectively and impeding their satisfaction at the office. A
good working relationship with your supervisor is essential since, at every stage, you need his or her
professional input, constructive criticism, and general understanding.
10. Work Group
There is a natural desire of human beings to interact with others and so existence of group in organization is a
common observable fact. This characteristics result in formation of work group at the work place. Isolated
workers dislike their job. The work groups make use of a remarkable influence on the satisfaction of
employees.
11. Leadership Styles
The satisfaction level on the job can be determined by the leadership style. Employee satisfaction is greatly
enhanced by democratic style of leadership. It is because democratic leaders promote friendship, respect and
warmth relationship among the employees. On contrary, employees working under authoritarian and
dictatorial leaders express low level of employee satisfaction.
THE CONSEQUENCES OF JOB SATISFACTION
1. Job Stress: When employees are not happy with their jobs, they are much more likely to experience
and report stress on the job. Workers who are satisfied or happy at work are much less likely to report
feeling stressed out by their job. This is basic human nature -- if you are not doing something you
enjoy, chances are you are going to feel dissatisfied and even little things will make you feel stressed
out and unhappy.
2. Poor Overall Morale: When one employee is miserable doing their job, all of the other employees
they come into contact with are going to be affected by their attitude. If they see someone who is so
obviously miserable, it will begin to color how they view their own jobs. Negative attitudes can spread
through a workplace like wildfire and, if they are not improved, the overall morale of the employees
will take a sharp decline.
3. Lack of Productivity: Low job satisfaction, coupled with low employee morale equals a lack of
productivity in the workplace. Again, we have basic human nature at work. When someone is unhappy,
they don't focus well and they don't pay attention to their tasks. They find hundreds of other things to
do that do make them happy, all the while ignoring the job they should be doing. When one member
of a team displays low productivity, it is only natural for other members of the team to feel dissatisfied
as a result, and their productivity will begin to decline as well. It is a vicious cycle that is all too
common.
4. High Employee Turnover Rates: Low job satisfaction also creates high turnover rates with
employees. Sooner or later, the employee is going to quit so that they can find a job they actually enjoy
doing. Many industries such as food service suffer from high turnover rates and the inability to retain
qualified workers. It is up to small business owners and managers to find a way to increase job
satisfaction, particularly in difficult industries in which the jobs are tough and the pay is low.
Factors Affecting Employee’s Satisfaction
A study conducted by Murray and Atkinson (1981) investigating gender differences in determinants of job
satisfaction, reflected that females attach more importance to social factors, while males place greater value
on pay, advancement and other extrinsic aspects
Studies conducted on the relationship between the level of education and job satisfaction showed no consistent
pattern (Kh Metle, 2003). Employees in possession of an intermediate level qualification reported higher levels
of satisfaction in relation to those employees who have higher levels of education. Kh Metle (2003) suggests
that job satisfaction decreases in relation to an increase in the level of education as the expectations of
employees are often not met by employers.
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Clarke, Oswald and Warr (1996) contend that employees with longer service may experience higher
satisfaction levels because the job matches their personal needs.
Mixed evidence exists regarding the relationship between age and job satisfaction (Robbins et al., 2003).
According to Greenberg and Baron (1995), older employees are generally happier with their jobs than younger
employees, while people who are more experienced in their jobs are more highly satisfied than those who are
less experienced.
Locke (1995) postulates that employee job satisfaction is dependant on satisfaction with the job components,
such as the work itself.
According to Bassett (1994), a lack of empirical evidence exists to indicate that pay alone improves worker
satisfaction or reduces dissatisfaction.
Research demonstrates that a positive relationship exists between job satisfaction and supervision (Koustelios,
2001; Peterson, Puia & Suess, 2003; Smucker, Whisenant, & Pederson, 2003).
A number of researchers are of the opinion that job satisfaction is strongly related to opportunities for
promotion (Pergamit & Veum, 1999; Peterson et al., 2003; Sclafane, 1999).
A number of authors maintain that having friendly and supportive colleagues contribute to increased job
satisfaction (Johns, 1996; Kreitner & Kinicki, 2001; Luthans, 1989).
To date, a paucity of research exists indicating the relationship between job status and job satisfaction.
Research conducted by Feather and Rauter (2004) which involved contract and permanent employees in the
teaching environment in Australia, failed to establish a relationship between job status and job satisfaction.
Satisfaction surveys reflect that a positive relationship prevails between job level and job satisfaction
(Cherrington, 1994). Higher levels of job satisfaction are usually reported by individuals occupying higher
level positions in organisations as they offer better remuneration, greater variety, more challenge and better
working conditions (Cherrington, 1994).
The Consequences of Job Satisfaction
Studies such as Frederick Reichheld’s “The Loyalty Effect,” (1996) and James Heskett, W. Early Sasser, and
Leonard Schlesinger’s “The Service Profit Chain” (1997) produced the first sets of hard data quantifying these
links. Both studies conclude that there are direct and quantifiable links between customer service variables
(such as satisfaction and loyalty), employee variables (such as satisfaction, enthusiasm, loyalty, commitment,
capability, and internal service quality), and financial results.
Cherrington (1994) postulates that employees experiencing high satisfaction levels contribute to organizational
commitment, job involvement, improved physical and mental health, and improved quality of life both on and
off the job. Job dissatisfaction on the other hand, culminates in higher absenteeism, turnover, labor problems,
labor grievances, attempts to organise labor unions and a negative organizational climate. Spector’s (1997)
research corroborates that of Cherrington’s (1994) in which it was found that employees who are dissatisfied
with their jobs show their disapproval by constantly being late or staying absent from work.
In 1997, Development Dimensions International (DDI) conducted focus groups, customer interviews,
literature reviews, and surveys to determine drivers of an effective service environment. DDI found evidence
of a circular relationship between employee satisfaction and retention, and customer satisfaction and loyalty,
and increases in company profitability. In addition, employee satisfaction was strongly related to employee
commitment and loyalty, and both measures have proven relationships to retention and productivity.
In “The Service Profit Chain” (1997), the authors proposed a model that workforce capability, satisfaction,
and loyalty would lead to customers’ perceptions of value. Value perception would lead to customer
satisfaction and loyalty, which would lead to profits and growth. The study found that employees’ perceptions
of their capabilities, satisfaction, and length-of-service were correlated with customer satisfaction.
Dr. Thomas Rollins of the Hay Group developed a model linking employee opinion survey results directly
with business performance metrics while excluding customer satisfaction measures. Main findings include the
following:
 This model holds that company-wide employee satisfaction results affect business unit employee
satisfaction results, which affect business unit financial results, which in turn affect company-wide
financial metrics.
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
However, the model also holds that the company-wide financial metrics may also affect companywide employee satisfaction results, allowing the model to demonstrate correlation, but not causation
between the different areas considered.
METHODOLOGY
A descriptive research design with survey method is applied in the study. The researcher has used the
secondary data for the purpose of this study. Secondary data were collected from available books, publications,
research studies, articles and websites.
ANALYSIS & DISCUSSION
The data after collection is to be processed and analyzed in accordance with the outline and down for the
purpose at the time of developing research plan. Technically speaking, processing implies editing, coding,
classification and tabulation of collected data so that they are amenable to analysis. The term analysis refers
to the computation of certain measures along with searching for pattern groups. Thus in the process of analysis,
relationship or difference should be subjected to statistical tests of significance to determine with what validity
data can be said to indicate any conclusions.
FINDINGS & CONCLUSION
The results suggest that the factors that affect the employee’s satisfaction and that the policy makers and
managers should focus on the factors that affect employee job satisfaction, if they want to enhance their
businesses. We are able to see that work conditions, fairness, promotion, and pay, are key factors affecting
companies employees’ job satisfaction. Money is a good motivator, actually all employees’ work for money,
employees need the money, a good salary and good compensations are key factors in satisfying the employee.
We can increase the employee salary and compensation to motivate the employee, the good pay back can be
one of the key factors affecting employee’s satisfaction, also in this way one can increase the service quality
and organizational performance. The factor of work conditions is also proven to have significant influence. A
good work environment and good work conditions can increase employee job satisfaction and the employees
will try to give their best which can increase the employee work performance. These elements are the
determinant of whether it affects employee’s satisfaction. If companies create a fair competitive environment,
like fair treatment, fair compensation, fair work hours, these will improve employee job attitudes; fairness can
also motivate employees to be hard working. After this consideration, we can see that fairness can increase
employee job satisfaction; satisfied employees offer good services for the organization. This can increase
organizational performance, so fairness is a key factor affecting job satisfaction in pharmaceuticals companies.
In companies job security as an aspect of job satisfaction was more important to male employees than to female
employees. Employees from medium- and large-staff-sized organizations, compared with those from small
staff-sized organizations, were more likely to cite job security as a very important contributor to their job
satisfaction.
LIMITATIONS
A. The results in this study might be applied in one industry but no in other due to difference cultures,
industries, demographic or psychology.
B. The research is basically on secondary data so it includes the limitation of secondary data.
RECOMMENDATIONS
Based on this study, and analysis of factors affecting companies’ employee’s job satisfaction, this paper makes
the following recommendations to the policy makers and managers of the pharmaceuticals companies:
1. Create favorable work conditions for the company. Guide the employee to communicate effectively,
build a good interpersonal environment within the company, in order to create good work conditions.
2. To improve the pay treatment of companies employees. Companies should improve the overall salary
packages of employees; on the other hand, two shifts or three shifts is a way to reduce the workload
of employees.
3. To improve fairness in companies, create a scientific performance appraisal system in the organization.
Utilize the other developed countries’ scientific performance systems, and use these systems to
evaluate employee work performance and evaluate employee service quality.
4. Ensure rightsizing strategy within the organization where have shortage of employees and train-up
them appropriately for future positions.
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CORPORATE AGILITY-A GLOBAL ORGANIZATIONAL
REINVENTING APPROACH FOR LONG TERM SUSTAINABILITY
AND EXCELLENCE
ABSTRACT
Mrs.Vijit Chaturvedi 1
Dr.Sudhir Agarwal2
With fast moving and turbulent changes happening across the globe Globalized world of the twenty-first
century has made the whole world a flat and open market. The focus of every organization across the
world is to innovate and bring radical and non-linear changes happening much more frequently. With
business and structure becoming more flatter and with a belief of networked organization the changes
across the organization has become very complex and interwoven .With the focus of every player in
industry to emerge as a global player the pace of change in technology, system, customers,
product ,policies, branding as a employer, adapting to changes in policy regulation in the policy demand
that organization should have strong sensing abilities to sense, identify, forecast and quickly come out
with a highly focused strategy to remain prepared against the unexpected and uncertain changes
happening all around. This will demand preparedness not only on the part of top management but an
equal preparation ,readiness, communication, willingness and desired attitude of all those who contribute
towards organization well being to face and react towards these changes. This requires a well defined
plan, suitable policies, consistent feedback, and sound mechanism to identify the expected changes in all
possible areas and finally a well defined assessable approach and methodology to face the same. Such an
approach helps organization to become agile towards all changes and events thus ensuring a long term
sustainability, high market leadership, strong brand name and making a highly innovative and enriched
organization culture. It will help in handling chronic uncertain markets.
The present paper based on descriptive conceptual research will put light on role of corporate agility as
a competitive weapon based on few examples, benefits and approaches and essential requirements in the
process of preparing organization to become agile.
The discussion has global implications since across the globe the focus of each organization is ensuring
its competitive presence against the competitors. The paper discusses different angles like operational,
strategic, organizational, market and leadership in order to make organization highly agile to gain long
term sustainable competitive advantage.
KEYWORDS: Organization agility, operational excellence, organization volatility
CORPORATE AGILITY-AN INTRODUCTION
Corporate agility implies the ability to move quickly, remaining both nimble and responsive. The term was
first used in the 1990s to describe manufacturing organizations that could adapt quickly to changing customer
needs. Agility within a governmental organization could be defined as the ability to run within shifting policies,
regulations, mandates, budgets, and priorities with changing missions and charters.
Agility is a concept that incorporates the ideas of flexibility, balance, adaptability, and coordination under one
umbrella. In a business context, agility typically refers to the ability of an organization to rapidly adapt to
market and environmental changes in productive and cost-effective ways. The agile enterprise is an extension
of this concept, referring to an organization that utilizes key principles of complex adaptive systems and
complexity science to achieve success. According to Wikipedia -The ability to adapt rapidly and cost
efficiently in response to changes in the business environment. Gartner defines -The ability to sense
1
2
Associate Professor, Lingaya’s University, Faridabad
Pro VC, Himalayan University, AP, India
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environmental change and to respond efficiently and effectively to it. Sensing the need for change also includes
the proactive initiation of change.The ability to both create and respond to anticipated and unanticipated change
in order to profit in a turbulent business environment.The ability of enterprises to cope with unpredictable
changes, to survive unprecedented threats from the business environment, and to take advantage of changes as
opportunities. For example bounds of competition as they produced new models more quickly than the industry
giants Nokia, Ericsson, and Motorola). When Nokia dropped the ball in its new product creation process the
product portfolio was criticized by analysts for missing the trend toward clam-shell phones the net result was
a $20 billion drop in market cap. In 1999, John Hagel suggested that firms should rethink the traditional
organizational model by “unbundling their core processes.” He suggested that firms should organize around
Customer Relationship Management, Product Innovation, or Infrastructure Management, and then outsource
all non-core processes.
Building organization agile structure is a multi- variable function because making organization agile cannot
be only because of innovation or operational excellence or re-inventing IT operations and design with
emergence of tools like cloud computing or the interwoven role of IT in business convergence, or best
leadership practices or restructuring and making organization flatter or merely talent management practices
only. It does not also simply means keeping a consistent check on financial statements, auditing or HR
accounting to estimate return on investment .it is a rather much more rich process which demands a complete
and holistic approach in totally preparing and re-inventing the pace of growth, decision making, approaches
of top management, their vision and exemplary action in execution of plans and action that makes organization
highly agile.
BASIC APPROACHES IN BUILDING CORPORATE AGILITY
The process of corporate agility requires adaptability, change, reaction and preplanning in all functions and
systems of organization as a whole whether finance, marketing, production and supply chain, operations,
IT,R&D. Corporate agility focuses on bringing changes in people, systems, processes and functions. It focuses
on following basic aspects as areas to prepare organization for forthcoming changes and reducing turbulenceThe first approach is Organizational innovation-For example for most of the organization across the globe
the life blood of organization today is innovation and it is clear that a focus on innovation is core to the
organization’s long-term success and this makes innovation fuel for growth. When a company runs out of
innovation, it runs out of growth. Hammer 2004 HBR article, “Deep Change – How Operational Innovation
Can Transform Your Company,” Michael Hammer argues that breakthrough innovations in operations – not
just steady improvement – can destroy competitors and shake up industries. He points to the fact that
operational innovation is not seen as “sexy” when compared with finance and strategy, mergers and
acquisitions, marketing and sales, etc. “Operational innovation should not be confused with operational
improvement or operational excellence. Those terms refer to achieving high performance via existing modes
of operation: ensuring that work is done as it ought to be to reduce errors, costs, and delays but without
fundamentally changing how that works gets accomplished. Operational innovation means coming up with
entirely new ways of filling orders, developing products, providing customer service, or doing any other
activity that an enterprise performs. Firms as Progressive Insurance, American Standard, Taco Bell, Harvard
Pilgrim Health Care, Shell, and Wal-Mart were out-performing their competitors using operational innovation.
The key point is that, rather than blindly following existing procedures, coming up with entirely new ways of
doing things is the realm of empowered knowledge workers who exercise their judgment and experiment.
Other second approach is developing organizational maturity-Developing Organizational Maturity is the
other aspect by which organization works on making itself agile for all challenges. As industry leaders such
as Toyota, Alcoa, Southwest Airlines, and Vanguard have demonstrated, it is possible to tightly couple the
process of doing work with the process of learning to do it better. Operations are designed to reveal problems
as they occur. When they arise, they are addressed quickly, regardless of how trivial they are. If the solution
to a particular problem generates new insights, they are deployed systemically. Dell, for example – its ability
to cut unnecessary cost from the supply chain is legendary. Another example is FedEx, which now knows so
much about its delivery process (logistics), that it can give a customer a choice of times when a package is to
be delivered
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Figure-1 Capability maturity model is linked with Business Process capability maturity model to gain advantage
As an organization moves up the BPMM ladder, it looks for the best practices (producing the most consistent
results) and stabilizes the way work is carried out across the organization around them (Level 3). This helps
to achieve economies of scale and provides a common basis for measurement. This is normally where a BPM
suite is deployed, providing the necessary plumbing that enables the firm to more easily change (although it
could also be deployed to support departmental processes at Level 2).
Key Performance Indicators (KPIs) around a consistent set of processes are usually agreed upon by the time
Level 3 is attained. At Level 4, the capabilities of the process are known. They may not be what management
wants, but at least there is a statistical viewpoint that is realistic – the variance of cases against the desired
metrics can be identified. With stable processes, it becomes possible to see where surgery is required to address
the competitive need and identify the anticipated benefits. At Level 5, the KPI data is so good that it highlights
those areas where improvements are needed.
The third approach is through knowledge management in a way creating knowledge intensive organization
it only helps in making organization better think tanks and innovative culture building but also helps in making
employees empowered and creative in rigorously thinking of connecting knowledge with procedural
requirements thus making organization adopting the best practices and methods of work and in turn making a
strong knowledge workforce. As quoted by. Every form of work, from the most so-called routine to the most
so called knowledge intensive, is actually a mix of practical, tedious kinds of manipulations of materials, and
thoughtful, knowledgeable judgment. The trick in designing information systems is to introduce bits of
automation that will fit into the work and do useful things, and then make it possible for people to work with
those bits of automation embedded in the systems while leaving them the discretionary space to exercise the
kind of judgment they need to exercise to really get the work done.
It is important to recognize that moving from a great idea to a roaring commercial success usually requires
recursive experimentation and learning. The only way ahead is to find the appropriate balance between
procedural support (for the repetitive elements of the process) and adaptability (by empowering the worker to
exercise his or her judgment based on the unique needs of the case in hand). It is also worth noting that this
balance is different for every organization – based on its own particular propensity for risk and the degree of
control desired by management.
The fourth approach is by emphasizing on Business process, it is important to have meticulously defined and
managed processes continue to be a powerful source of competitive advantage for many companies. Look at
Toyota, for instance. Its highly engineered manufacturing processes not only give it superior productivity but
also provide a platform for constant learning and improvement. The formal structure, which is anything but
democratic, spurs both efficiency and innovation – productive innovation simultaneously. Structured, wellthought-out processes are also essential to most knowledge work, from product development to financial
analysis to software engineering to sales and marketing and the more complex the effort, the greater the need
for clear processes. Far from making business less effective and agile, the increasing attention to process has
increased effectiveness and agility. it is self-evident that businesses are constantly reorganizing, merging, and
splitting their operations, resulting in continuous changes in the boundary between what is owned and who
are collaborators in delivering value to customers. The fifth approach as suggested in industrial report by
Accenture is by choosing the right business model-Advances in smart technologies, increasing consumer
demands, and shifting regulatory and government policies are creating significant disruptions for utilities.
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Within this context of dynamic challenges and nascent opportunities, they need to consider potential new
business models for the future. Accenture believes there are four of themStandard provider- These companies retain the basic supplier-of-last-resort relationship with customers,
providing inexpensive, reliable energy and a simple, cost-effective customer experience.
Specialized provider- These players enhance the traditional commodity service offering with value-added
products and services and take a measured approach to growth in the beyond-the-meter marketplace.
Full-service provider- Full-service companies offer all products and services across the energy value chain—
including home services. They compete aggressively with home services providers and companies that offer
bundled value-added products and services. They take advantage of industry and technological convergence
to create revenue streams via new product and service offerings.
Marketplace advisor- While continuing to own the customer relationship and provide core energy services,
these companies seek to become trusted energy marketplace advisors. As such, they provide access to a
sophisticated marketplace of preferred or recommended vendors for energy efficiency and value-added home
services.
The sixth approach is continuously renovating, for example In the United Kingdom’s deregulated market,
for example, the utility SSE teamed with Marks & Spencer (M&S) in 2008 to supply M&S Energy-branded
gas and electricity services through the big retailer’s website and stores. M&S Energy offers incentives to
consumers for achieving electricity reduction targets and for switching to paperless billing. By March 2010,
the partnership had attracted 175,000 customers. Later that year, Marks & Spencer extended the offering to a
full line of home energy services, including energy advice, renewable energy solutions such as solar panels
and heat pumps, home insulation and energy-efficient heating solutions.
Best Buy has also collaborated with a number of utilities to create in-store energy learning centers where
consumers can find out about the latest technologies for managing their home energy consumption and saving
money. The company is piloting the sale of electricity in one of its Chicago stores through a partnership with
Constellation Energy. The consumer electronics retailer has also created its own offerings, which include
packaged home automation solutions and energy assessments that homeowners can access either via an online
survey or at home through an onsite energy audit conducted by Best Buy’s Geek Squad. Lowe’s, a US-based
chain of home improvement stores, offers customers solar panels made by California-based Sungevity as well
as a comprehensive line of home management systems. In January 2012, Lowe’s announced a partnership with
AlertMe, a UK-based energy management and smart home company, to offer customers the organization’s
cloud-based home management system. The system gives consumers a full range of home monitoring solutions
that include energy usage tracking and control of door locks, smart thermostats, lighting and more via smart
phone or computer. Such partnerships can, in many cases, provide the quickest path to value, enabling
companies to focus on their core strengths and collaborate to extend capabilities
The other good approach is understanding customer and quickly responding towards the expectations today
because today because today’s customer not only evaluates before and during buying but even after buying.
Enabled by technology, customers can now easily control and vary their routes within (and across) channels
to suit their needs at any given moment. Although shoppers move through the same fundamental stages today,
they have replaced their traditional beeline route through the funnel with a variety of pathways that can be
direct but more often than not are nonlinear, including loops and switchbacks. Excelling in today’s marketplace
means leaving the funnel far behind. By shifting to this new model of non-stop customer focus and executing
on the basis of the insights it provides, executives can create relevant consumer experiences, capture new
demand, seize opportunities from less agile competitors and find new avenues to profitable growth. Example
is of Accenture non-stop customer experience model which focuses on continuously innovating and focusing
on customer. The following model demonstrates it-
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COMPONENTS OF BUSINESS AGILITY
There are certain components of business agility that makes organization less volatile, as suggested by Engel,
Shill, and Schatteman. They areAnticipating –This focuses on forecasting the expected changes in industry, customers, market, policies,
pricing and a consistent review on all the market forces.
Sensing-It requires strong analytical abilities to forecast trends in consumer behavior, competitor moves,
changes in supply chains and different macro and micro economic development.
Responding –This focuses on rapid decisions making understanding the competitor moves and pilot testing
on a smaller basis which if succeeds can be broadly applied to the whole scale.
Adapting-After identifying the changes in the market organization is able to record the possible changes and
moves that it requires implementing. The next step should be on bringing desired changes at different levels
right from restructuring organization structure, reengineering process, people, functions, training and
operations.
An important example in this regard is Verizon, a communications player, offers broadband-based home
monitoring and energy control systems that include smart thermostats, smart plugs, remote locks and home
monitoring cameras. Similarly, Time Warner Cable’s Intelligent Home enables customers to control lighting
and home energy use remotely. Some energy providers, seeing these new competitors enter their markets, are
responding with their own offerings. In Australia, some utilities offer consumers bundled electricity, natural
gas and green energy, as well as Internet access, home and mobile phone service and television connections,
all in packages that offer discounts of up to 25 percent.
According to Engel, Shill, and Schatteman there can be six different perspectives of ensuring corporate agility(a) Strategic Lens-There needs to be clarity on what does organization needs that will decide its strategies
and changes that it will dept to become agile. A transformational leadership based on scenario planning
helps in this regard to bring such changes.
(b) Leadership Lens-Agility will demand quicker response towards the identified changes whether it is
re structuring structure, process, system ,people, merging or creating alliances or adopting best
benchmarked practices, working on supply chains, improving value chains,Reinvesnting IT tools like
cloud computing or ERP or different ways of assessing people competency. All of this will require
clarity, equal efforts, sound judgmental abilities, quicker decision making, reliable forecasting
techniques and timely action.
(c) The organizational lens-This will demand sound transformation and collaboration between people,
system and retention of required skilled and knowledge workforce. This will demand testing the
viability, feasibility and suitability of the change with the organization and then preparing organization
for the same.
(d) The Market Lens-This will require quicker and real time response to the requirements of the
customers the one discussed as non-stop customer response model of Accenture are best to be quoted
in such concepts. This brings expected moves in the system making it more agile and through advanced
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analytics helps in building organization more adaptable. Whether it by social media or by consumer
forums or blogs consistently identifying and responding to customer needs s primarily important.
(e) The operational lens- with markets becoming global all the firms in order to remain active have
started reworking on their supply chain where also in India the purchase departments are been replaced
by effective supply chain management to retain sound supplier vendor relationship thus adapting
sound operational procedures. The incremental investment approach matched with well documented
test and learns cycles help in retaining greater shifts and initiatives.
(f) The financial lens-It is important for organization to keep a balance between their budgeting and
planning process because highly sound financial lens is only one aspect and support for maintaining
agility but its right utility and investment for longer run that too with a strategic perspective is a crucial
and demands sound experience, latest knowledge and sound execution. Thus focus on right risk
management, financial forecasting, budget planning, annual cycles, managing inventory, credit terms,
payment terms everything has to be monitored and regulated consistently.
The above mentioned aspects provide an insight on how organizations can sustain agility but this is not the
ultimate list the factors and strategies are exhaustive and depend on the organization challenges and
affordability and above all the attitude of the top management.
Though there are certain terms as similar to agility like adaptability, versatility or organization resilience.
Amongst all agility includes in broadest way range of abilities of an organization to overcome the
challenges.Adatability is a term used for organization that are agile since long period and versatility refers to
companies that have wide range of business models whereas resilience refers to an organization ability to
bounce back after shocks of different kind whether financial, operational market or strategic.
BENEFITS OF BEING AN AGILE COMPANY
[1] Agility shows rapid improvement and innovation – Knowing when to change.
[2] Agility meets strategic directives quickly and intelligently – Knowing what to change.
[3] Agility drives company-defined changes and goals – Knowing how to change.
ESSENTIALS IN ASSESSING AGILITY QUOTIENT
The organization should consistently assess its preparedness for next 3 years.
 Identifying the areas strategically, operationally, financially, in market, policy wise that can help in
building agility in organization
 Forecasting all possible dimensions which can be a source of competition for organization
 Assess the gap between the best performer and self. Identify the reason of gap and the possible solution
 Assessing how far with respect to new emerging capabilities in different areas is the organization
taking advantage
 Identify how far the preparedness of the talented workers in the organization is as per the requirement
to keep organization agile
 Identifying the areas where by collaborating with competitors advantage can be gained
 Identifying the right people in the organization to act as leaders to maintain agility live.
 Identifying the ability of the organization in decision making and also in cost cutting to bring more
agility in the organization
 Convince senior management that process adaptability and innovation are key organizational goals.
 Look for external references (outside your own industry) challenge employees to look beyond the
conventional to generate radical or innovative processes.
 Regard exceptions as a way of managing the need for process change and handling new ways of doing
things (rather than seeing them as problems).
 Identify assumptions that constrain how work is carried out
CONCLUSION
Thus from the above discussion it can be concluded that corporate agility is a strong weapon for organization
to reduce volatility and keep organization nimble. It helps organization to remain prepared with best strategy
with a futuristic approach against all such factors that can cause uncertainties increase. It is a phenomenon that
focuses on keeping all the areas and sub system of organization lively and identifying in a multi-dimension
way the best strategies with which the organization can flourish. Organization agility is a consistent process
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by way of which at different sub-systems right from production to R&D along with role of IT organization can
keep sustainable growth and long term competitive advantage. The only important point to be remembered is
that organization should consistently and urgently realize its significance and role in providing an advantage
to the firm. This will provide a strategic advantage and build a culture of trust, innovativeness, and high
acceptance and gradually will help in building a strong inventory of trained manpower.
REFERENCES
[1] Eric D. Beinhocker(2006), “The Adaptable Corporation”, McKinsey Quarterly Number 2.
[2] Hagel John III and Singer Marc “Unbundling the Corporation” HBR March 1999
[3] Michael Hammer (2004), “Deep Change—How Operational Innovation Can Transform Your Company,”, April
HBR
[4] Miers Derek(2010), “Process innovation and corporate agility”,BP trends p.p3-9
[5] Shill,Angel,Mann,Schatteman(2012), Corporate agility, six ways to make volatility your friend,Outllok,Vol51
issue 09,pp 82-88
[6] Wollan, Schunck, Nunes,serving the non-stop customer(2012),Corporate agility, six ways to make volatility
your friend, Accenture.com Outlook vol.3
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A STUDY OF PSYCHOLOGICAL HARDINESS ACROSS DIFFERENT
PROFESSIONS OF KASHMIR (J&K), INDIA
ABSTRACT
Dr. Anita Puri Singh 1
Ansarullah Tantry2
Hardiness is the ability of an individual to combat stress. Kobasa (1979) defined hardiness in terms of
more specific dimensions of control, commitment and challenge characteristics that may influence both
cognitive appraisal and behavior in response to stressful events. The present study is an attempt to
ascertain the level of psychological hardiness among bank, education, health and police professions of
Kashmir valley. For the conduction of study a sample of 200 officials (50 subjects from each profession)
was randomly selected. The measure used for data collection was Kobasa S.C. & Maddi S.R. (1982)
psychological hardiness scale. The data was analyzed by computing mean, SD, t-test, ANOVA and Tukey
Post Hoc (HSD) test. The results revealed that there was a significant difference in different professions
with respect to their level of psychological hardiness.
KEYWORDS: Psychological hardiness, profession
INTRODUCTION
At times things do not go the way we want. Sometimes happenings bother us while other times these may
please us. The same situation has varying impact on different people at the same time. Events occur in our life,
it depends on the way we perceive these events and the coping power that we have. An event may be stressful
for someone and for another may not.
Some people have resistance against stress and this resistance against stress is known as hardiness. Therefore,
the level of hardiness varies across people. To be described as hardy means to be strong and tolerant of stressful
situations. According to the Oxford Dictionary, "Hardiness is the ability to endure difficult conditions". While
as "English Collins Dictionary" states Hardiness as "the condition or quality of being hardy, robust or bold".
Some people seem to be hardy than others when it comes to dealing with stress. Hardiness helps people turn
stressful circumstances into opportunities. It is the capacity for enduring or sustaining hardship, privation, etc.;
capability of surviving under unfavourable conditions. It is a buffer against aging.
Maddi and Kobasa (1984), believe that the foundation of an individual's ability to successfully cope with
stress and remain healthy is personality style, which they termed "Hardiness". Psychologically "hardy"
individuals have a different view of themselves and of the world. Moreover, according to Kobasa (1979),
Hardiness is defined in terms of more specific dimensions of control, commitment and challenge
characteristics that may influence both cognitive appraisal and behavior in response to stressful events. Higher
control reflects the belief that persons can exert an influence on their surroundings, such persons feel that they
have the power to turn an unfortunate situation into an advantageous one. Higher commitment is defined in
terms of an individual's full engagement in activities and strongly committed people have a sense of purpose
and self understanding, allowing them to uncover meaning in which they are and value in, such persons seem
to perform in cheerful and effortless manner. Highly challenged individuals believe that change rather than
stability characterizes life. Such persons anticipate change as affording them an opportunity for further
development.
Hardiness (psychological), alternatively referred to as psychological hardiness, personality hardiness, or
cognitive hardiness in the literature, is a personality style first introduced by Suzanne C. Kobasa (1979).. In
the following years, the concept of hardiness was further elaborated in their book (Maddi, S. R., & Kobasa, S.
C. 1984) and a series of research reports by Salvatore Maddi, Kobasa and their graduate students at the
University of Chicago (Kobasa, S. C. 1982; Kobasa, S. C., Maddi, S. R., & Courington, S. 1981; Kobasa, S.
1
2
Head, Department of Psychology, MLB Girls Autonomous College, Bhopal (MP)
Research Scholar, Department of Psychology, BU, Bhopal (MP)
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C., Maddi, S. R., & Kahn, S. 1982; Kobasa, S. C., Maddi, S. R., Puccetti, M. C., & Zola, M. A. 1985; Kobasa,
S. C., Maddi, S. R., & Zola, M. A. 1983; & Kobasa, S. C., & Puccetti, M. C. 1983). Hardiness has been
proposed to buffer the psychological and physical effects of stress on the body and was derived from the
existential concept of the authentic personality. Research supported the idea that hardiness contributed to
mental health through coping and appraisal mechanisms (Florian, Mikulincer & Taubman, 1995). Mathis,
Michele, Lecci, and Len (1999) examined whether hardiness can be used in identifying students who have
difficulties with academic, social, emotional and attachment adjustment. Results showed that hardiness overall
was a better predictor of mental rather than physical health.
Hardiness is often considered an important factor in psychological resilience or an individual-level pathway
leading to resilient outcomes (Bartone, P. T., & Hystad, S. W. 2010, Bonanno, G. A. 2004). Hardiness has
some notable similarities with other personality constructs in psychology. Chief among these are locus of
control (Rotter, J. B. 1966), sense of coherence (Antonovsky, A. (1987), (SOC) self-efficacy (Bandura, A.
(1997), and dispositional optimism (Scheier, M. F., & Carver, C. S. (1985).
Studies of coping strategies have demonstrated a complex relationship with Hardiness. Maddi (1999), suggests
two coping styles, using as an example of the situation of losing one's job. Transformational coping is "an
attempt to transform a stressful situation into an opportunity for personal growth and societal benefit".
Regressive coping refers to "an attempt to deny, avoid, or escape a stressful situation". Transformational
coping might involve the optimistic appraisal that you accepted risk when you joined the organization. It might
be followed by decisive actions; interviewing those who fired you, or reassessing whether that job or some
new career best suits you. In contrast, regressive coping might involve pessimistic appraisal; the job you lost
is irreplaceable and you are unworthy, and use strategies such as drinking heavily. According to Kobasa,S.C.
(1982), individuals high in hardiness tend to put stressful circumstances into perspective and interpret them in
a less threatening manner. As a consequence of these optimistic appraisals, the impact of the stressful events
is reduced and they are less likely to negatively affect the health of the individual. Research on self-reported
stressors, real-life stressful experiences, and laboratory-induces stress support this claim (Westman, M. 1990;
Allred, K.D., Smith,T.W. 1989; Banks,J.K.,& Gannon,L.R. 1988; Clark, L.M.,& Hartman, M. 1996;
DiBartolo, M.C., & Soeken, K.L. 2003; Rhodewalt, F., & Zone, J. B. 1989; Florian, V., Mikulincer, M., &
Taubman, O. 1995; & Wiebe, D. J. 1991).
RELEVANCE OF THE STUDY
Kashmir is a place where the people are very much stressed because of prevailing circumstances in addition
to the usual life stress. In such an environment it seems that hardiness can play a very crucial role to combat
stress. The review of literature shows that hardiness has not been much studied and especially in Kashmir the
research with respect to the said variable is almost nil, the investigater felt the need to conduct a study on
Kashmiri population belonging to different professions.
OBJECTIVES
The present study of psychological hardiness is being conducted with the following objectives in mind.
[1] To compare psychological hardiness among different individual with respect to gender, domicile
(rural/urban), economical status, family type, marital status and nature of job.
[2] To compare psychological hardiness between different professions, viz. bank, education, health and
police.
HYPOTHESIS
On the basis of the objectives of the study, the following Null Hypotheses have been formulated.
Ho1: There is no significant difference in psychological hardiness among different individuals with respect
to gender, domiciling (rural/urban), economical status, family type, marital status, and nature of job.
Ho2: There is no significant difference in psychological hardiness across the personnel of different
professions.
METHODS
SAMPLE
This study consists of N = 200 subjects taken from different districts of Kashmir province. The sample was
selected by using A detailed description of the sample is given as follows:Gender
Male = 143
Female = 57
200
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Domiciling (rural/urban)
Economical status
Family Type
Marital status
Nature of Job
Rural = 79
Above 40000’s = 46
Nuclear = 123
Married = 152
Permanent = 166
Urban = 121
Below 40000’s = 154
Joint = 77
Unmarried = 48
Temporary = 34
200
200
200
200
200
TOOLS USED
For the measurement of Psychological Hardiness Kobasa S.C. & Maddi S.R. (1982), psychological hardiness
scale was used. The scale consists of 2 sections i.e. section A and B, sections A consists of 1-14 items each
having 4 options which measures commitment and sections B of 15-20 items each having 2 options which
measure commitment hardiness.
RESULTS
Table 4.1: Showing means difference of psychological hardiness between male and female subject.
Gender
N
Mean
Std. deviation
df
t-value
Male
143
28.4406
5.17527
198
0.321NS
Female
57
28.1754
5.50040
The results presented in table 4.1 reveal the t-value of the mean scores of psychological hardiness with respect
to gender. No significant difference in psychological hardiness between male and female subjects is found, as
the t-values (t = 0.321) is insignificant.
Table 4.2: Showing means difference of psychological hardiness between rural and urban subject.
Domiciling
N
Mean
Std. deviation
df
t-value
Rural
79
28.0380
4.98059
198
-0.710NS
Urban
121
28.5785
5.44021
to residential area. No significant difference in psychological hardiness is found as the t-values (t = -0.710) is
insignificant.
Table4.3: Showing means difference of psychological hardiness between subject of below 40 thousand and above
40 thousand salary.
Economical status
N
mean
Std. deviation
df
t-value
Below 40 thousand
154
28.4091
5.43243
198
0.216NS
Above 40 thousand
46
28.2174
4.67577
The results presented in table 4.3 reveal the t-value of the mean score of psychological hardiness with respect
to salary. No significant difference in psychological hardiness between subject of below 40 thousand and above
40 thousand salary is found, as the t-value (t = 0.216) is insignificant.
Table 4.4: Showing means difference of psychological hardiness between subject of nuclear and joint family type.
Family type
N
Mean
Std. deviation
df
t-value
Nuclear
123
28.1870
5.31060
198
-0.604NS
Joint
77
28.6494
5.19303
to family type. No significant difference in psychological hardiness between subjects of nuclear and joint
family type is found, as the t-values (t = -0.604) is insignificant.
Table 4.5 : Showing mean difference of psychological hardiness between married and unmarried subjects.
Marital status
N
Mean
Std. deviation
df
t-value
Married
152
28.3882
5.31155
198
0.111NS
Unmarried
48
28.2917
5.13626
to marital status. No significant difference in psychological hardiness between subjects of married and
unmarried subject is found, as the t-values (t = 0.111) is insignificant.
Table4.6: Showing mean difference of psychological hardiness between subjects of permanent and temporary
nature of job.
Nature of job
N
Mean
Std. deviation
df
t-value
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Permanent
Temporary
166
34
6.1928
29.1765
2.34305
5.35113
198
-1.057NS
to nature of job. No significant difference in psychological hardiness between subjects of permanent and
temporary nature of job is found, as the t-values (t = -1.057) is insignificant.
Table 4.7: Showing ANOVA of psychological hardiness across different professions.
Psychological
Df
Mean square
F
hardiness
Between groups
3
74.973
3.55*
Within groups
196
21.93
Total
199
*Significant at 0.05 level of significance
The results presented in table 4.7 reveal the F -value of psychological hardiness across different professions.
Significant difference in psychological hardiness across different profession is found, as the F-values (F =
3.55) is significant at 0.05 level of significance.
Table 4.8: Showing Post Hoc analysis (Tukey’s HSD) of psychological hardiness in different professions.
Psychological hardiness
Profession
Mean difference
Significance
Health
Bank
2.70000
0.019*
Education
2.42000
0.045*
Police
1.3600
0.451NS
Bank
Education
-0.28000
0.990NS
Police
-1.34000
0.464NS
Education
Police
-1.06000
0.657Ns
*Significant at 0.05 level of significance
The result presented in above table reveal Post Hoc analysis with respect to psychological hardiness between
different professions. Significant differences in psychological hardiness were found in the groups - health with
bank and education at 0.05 level of the significance. However the Post Hoc analysis reveal no significant
difference psychological hardiness in the groups- health with police, bank with education and police , and
education with police.
DISCUSSION
The present study examined the psychological hardiness of the personnel of different professions of Kashmir
valley. It was an attempt to determine whether the psychological hardiness differ among the personnel of
different sectors with respect to their gender, domiciling, economic status, family type, marital status and
nature of the job. Results related to the difference between male and female subjects presented and analyzed
in the above section show that the two groups do not differ significantly (Ref. Table 4.1). The reason for these
results could be that there is equal footing between males and females in every walk of life as a result both the
genders learn to cope every situation equally. While the difference in psychological hardiness of personnel of
rural vs. urban, high salaried vs. low salaried, nuclear family vs. joint family groups, married vs. unmarried,
and personnel with permanent job vs. personnel with temporary job. The analyses of the results showed that
all these contrasting groups do not differ significantly (Ref. Tables 4.2, 4.3, 4.4, 4.5 and 4.6). This means that
all these groups use somewhat similar coping strategies or resilience in different stressing situations.
From the above discussion it can be said that the personnel of different professions do not differ significantly
with respect to their gender, domiciling, economic status, family type, marital status and nature of job. Hence,
our hypothesis Ho1 is accepted.
The findings of the present study related to the difference in psychological hardiness across the personnel of
different professions showed that the personnel of health sector vs. personnel of banking sector and personnel
of health sector vs. personnel of education sector differ significantly (Ref. Table 4.8). It seems that personnel
of health sector have high psychological resilience than either personnel of banking sector or personnel of
education sector.
The reasons for these results could be that personnel of health sector are highly knowledgeable about different
coping mechanisms and their appropriate use, which the personnel of other sectors may be lacking. Further,
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our results also show that personnel of health sector vs. personnel of police sector do not differ significantly
in terms of psychological hardiness. Hence, our hypothesis Ho2 is partially rejected.
CONCLUSION
After analyzing and interpreting the data, it was found that psychological hardiness across different professions
differ significantly. The results also reveal that psychological hardiness in health professionals with banking
and education professionals differ significantly. No significant difference in psychological hardiness was
found with respect to their gender, residential area, salary, family type, marital status, and nature to job.
Moreover, no significant difference in psychological hardiness was found in health with police professionals,
banking with education and police professionals, and educational with police professionals.
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constitution as mediators in the stress-illness relationship". Journal of Health and Social Behavior 22 (4): 368–
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(1985). "Effectiveness of hardiness, exercise and social support as resources against illness". Journal of
Psychosomatic Research 29 (5): 525–533.
[12] Kobasa, S. C., Maddi, S. R., & Zola, M. A. (1983). "Type A and hardiness". Journal of Behavioral Medicine 6
(1): 41–51. Kobasa, S. C., & Puccetti, M. C. (1983). "Personality and social resources in stress resistance".
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[13] Maddi, S. R., & Kobasa, S. C. (1984). The hardy executive : Health under stress. Homewood, IL:: Dow JonesIrwin.
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[16] Rhodewalt, F., & Zone, J. B. (1989). "Appraisal of life change, depression, and illness in hardy and nonhardy
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and Social Psychology 60 (1): 89–99.
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FACTORS INFLUENCING THE INDIVIDUAL INVESTOR BEHAVIOR
WITH SPECIAL REFERENCE TO COIMBATORE, TAMIL NADU
ABSTRACT
Dr. Ramesh Chandra Babu 1
Purpose: To study the factors influencing the individual investor behaviour.
Design/ Methodology/Approach: It is a descriptive study. The research method uses mean score
value as the metric to gauge the variables. The primary data collected was through questionnaire. The
factors influencing individual investor behavior is broadly classified under five major categories, namely
(1) self-image/firm-image coincidence, (2) accounting information, (3) neutral information, (4) advocate
recommendation and (5) personal financial needs. These five factors were further broken-down into a
set of attributes that make-up every classified factor. The Population for this study is the individual
investors in Coimbatore city, Tamil Nadu, India. The study period is from February, 2013 to May, 2013.
The sample size is 200 and the sampling technique is Judgement sampling.
Findings: The most influencing attribute of the individual investors are the ‘condition of financial
statements’, which ranks first, followed by ‘diversification needs’, ‘dividends paid’, ‘past performance of
the firm’s stock’ and the ‘organized financial markets’.
The least influencing attribute of the individual investors are the ‘religious reasons’, ‘ease of obtaining
borrowed funds’, ‘family member opinions’, ‘broker recommendation ‘and ‘increase of the firm’s
involvement in solving community problems’.
Research Limitations: This study is restricted to the investors in Coimbatore city and its surroundings
only. This study has not been conducted over an extended period of time having both ups and downs of
stock market conditions, which is a significant influence on investor’s buying pattern and preferences.
Originality / Value: This is an original work that describes the factors that influence the individual
investor behavior in Coimbatore district, Tamil Nadu, India..
KEYWORDS: Individual Investor Behavior, Behavioral Finance
INTRODUCTION:
Research in behavioral finance is relatively new. Within behavioral finance it is assumed that information
structure and the characteristics of market participants systematically influence individuals’ investment
decisions as well as market outcomes. According to behavioral finance, investor market behavior derives from
psychological principles of decision making to explain why people buy or sell stocks. Behavioral finance
focuses upon how investors interpret and act on information to make investment decisions. In addition,
behavioral finance places an emphasis upon investor behavior leading to various market anomalies. This study
aims at identifying the most and the least influencing factors of the individual investor behavior.
To study the factors influencing the individual investor behavior.
It is a descriptive study. The research method uses mean score value as the metric to gauge the variables. The
primary data collected was through questionnaire. The factors influencing individual investor behavior is
broadly classified under five major categories, namely (1) self-image/firm-image coincidence, (2) accounting
information, (3) neutral information, (4) advocate recommendation and (5) personal financial needs. These
five factors were further broken-down into a set of attributes that make-up every classified factor. The
1
M.Com.,MBA.,FDPM(IIM-A), Ph.D, Associate Professor, School of Banking & Finance, Jagran Lakecity University,
Bhopal- M.P. - India
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Population for this study is the individual investors in Coimbatore city, Tamil Nadu, India. The study period
is from February, 2013 to May, 2013. The sample size is 200 and the sampling technique is Judgement
sampling.
This study is restricted to the investors in Coimbatore city and its surroundings only.
This study has not been conducted over an extended period of time having both ups and downs of stock market
conditions, which has a significant influence on investor’s buying pattern and preferences.
A comprehensive literature review about behavioral finance in general is beyond the scope of this research.
Instead, the results of some empirical studies about individual investor behavior will be highlighted. A
substantial amount of attention has been given by researchers to institutional investor behavior, whereas less
attention has been given to the individual investor behavior that is the emphasis of this paper. However, almost
all the previous studies have dealt with investors’ behavior in industrialized countries (e.g. USA, UK, and
Canada).
Kadiyala and Rau (2004) investigated investor reaction to corporate event announcements. They concluded
that investors appear to under-react to prior information as well as to information conveyed by the event,
leading to different patterns: return continuations and return reveals, both documented in long-horizon return.
They found no support for the overreaction hypothesis.
Merikas et al., (2003) adopted a modified questionnaire to analyze ‘factors influencing Greek investor
behavior on the Athens Stock Exchange’. The results indicated that individuals base their stock purchase
decisions on economic criteria combined with other diverse variables. The authors did not rely on a single
integrated approach, but rather on many categories of factors.
Malmendier and Shanthikumar (2003) tried to answer the question: Are small investors’ inexperienced? They
found that large investors generate abnormal volumes of buyer-initiated trades after a positive
recommendation, only if the analyst is unaffiliated. Small traders exert abnormal buy pressure after all positive
recommendations, including those of affiliated analysts.
Hodge (2003) analyzed investors’ perceptions of earnings quality, auditor independence, and the usefulness
of audited financial information. He concluded that lower perceptions of earnings quality are associated with
greater reliance on a firm’s audited financial statements and fundamental analysis of those statements when
making investment decisions.
Krishnan and Booker (2002) analyzed the factors influencing the decisions of investor who use analysts’
recommendations to arrive at a short-term decision to hold or sell a stock. The results indicate that a strong
form of the analyst summary recommendation report, i.e., one with additional information supporting the
analysts’ position further, reduces the disposition error for gains and also reduces the disposition error for
losses.
6.1: TABLE 1: SELF-IMAGE/FIRM-IMAGE COINCIDENCE
SELF-IMAGE/FIRM-IMAGE COINCIDENCE
MSV
Organized financial markets
3.98
Perceived ethics of firm
3.98
Reputation of the firm
3.84
Feelings for a firm’s products and services
3.7
Gut feeling on the economy
3.68
Firm status in industry
3.58
Reputation of the firm’s shareholders
3.32
“Get rich quick”
3.08
Increase of the firm’s involvement in solving community problems
2.92
Religious reasons
2.26
RANK
1
2
3
4
5
6
7
8
9
10
OVERALL MSV = 3.434
INTERPRETATION
‘Organized financial markets’ (MSV 3.98) is being considered as the most influencing attribute on the investor
behavior under the factor self-image/firm-image coincidence whereas ‘Increase of the firm’s involvement in
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solving community problems’ (MSV 2.92) and’ Religious reasons’ (MSV 2.26) are the least influencing
factors.
6.2:
TABLE 2: ACCOUNTING INFORMATION
ACCOUNTING INFORMATION
MSV
Condition of financial statements
4.1
Dividends paid
4.08
Past performance of the firm’s stock
4.06
Expected Dividends
3.98
Expected corporate earnings
3.88
Stock Marketability
3.65
Affordable share price
3.62
RANK
1
2
3
4
5
6
7
OVERALL MSV = 3.912
INTERPRETATION
‘Condition of financial statements’ (MSV 4.1) is being considered as the most influencing attribute under the
factor accounting information whereas ‘Stock Marketability’ (MSV 3.65) and ‘Affordable share price’
(MSV 3.62) are the least influencing factors.
6.3:
TABLE 3: NEUTRAL INFORMATION
NEUTRAL INFORMATION
MSV
Recent price movement in a firm’s stock
3.98
Current economic indicators
3.7
Fluctuation/developments in the stock index
3.68
Statements from government officials
3.36
Information obtained from the internet
3.34
Coverage in the press
3.14
Government holdings
3.12
RANK
1
2
3
4
5
6
7
OVERALL MSV = 3.474
INTERPRETATION
The most influencing attribute under ‘Neutral information’ is the ‘recent price movement in a firm’s stock’
(MSV 3.98) whereas the least influencing factors include ‘Coverage in the press’ (MSV 3.14) and
‘Government holdings’ (MSV 3.12) in the company.
6.4:
TABLE 4: ADVOCATE RECOMMENDATION
ADVOCATE RECOMMENDATION
MSV
Friend or coworker recommendations
3
Opinions of the firm’s majority stockholders
2.96
Broker recommendation
2.92
Family member opinions
2.88
RANK
1
2
3
4
OVERALL MSV = 2.94
INTERPRETATION
The most influencing attribute under ‘Advocate recommendation’ is the ‘Friend or coworker
recommendations’ (MSV 3) whereas family member opinions (MSV 2.88) is the least influencing factors.
6.5:
TABLE 5: PERSONAL FINANCIAL NEEDS
PERSONAL FINANCIAL NEEDS
MSV
Diversification needs
4.08
Minimizing risk
3.92
Expected Losses in other local investments
3.42
Attractiveness of non-stock investment
3.24
Expected Losses in international financial markets
3.22
Ease of obtaining borrowed funds
2.66
RANK
1
2
3
4
5
6
OVERALL MSV = 3.423
INTERPRETATION
The most influencing attribute under personal financial needs is the diversification needs (MSV 4.08) whereas
the ease of obtaining borrowed funds (MSV 2.66) is the least influencing factors.
6.6: TABLE 6: SUMMARY OF ALL THE FACTORS INFUENCING INDIVIDUAL INVESTORS
FACTORS
MSV
RANK
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Condition of financial statements
Diversification needs
Dividends paid
Past performance of the firm’s stock
The creation of the organized financial markets
Expected Dividends
Perceived ethics of firm
Recent price movement in a firm’s stock
Minimizing risk
Expected corporate earnings
Reputation of the firm
Feelings for a firm’s products and services
Current economic indicators
Gut feeling on the economy
Fluctuation/developments in the stock index
Stock Marketability
Affordable share price
Firm status in industry
Expected Losses in other local investments
Statements from government officials
Information obtained from the internet
Reputation of the firm’s shareholders
Attractiveness of non-stock investment
Expected Losses in international financial markets
Coverage in the press
Government holdings
“Get rich quick”
Friend or coworker recommendations
Opinions of the firm’s majority stockholders
Broker recommendation
Increase of the firm’s involvement in solving community problems
Family member opinions
Ease of obtaining borrowed funds
Religious reasons
4.10
4.08
4.08
4.06
4.00
3.98
3.98
3.98
3.92
3.88
3.84
3.70
3.70
3.68
3.68
3.65
3.62
3.58
3.42
3.36
3.34
3.32
3.24
3.22
3.14
3.12
3.08
3
2.96
2.92
2.92
2.88
2.66
2.26
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
INTERPRETATION
The most influencing attribute of the individual investors are the ‘condition of financial statements’ (MSV
4.10) which ranks first, followed by ‘diversification needs’ (MSV 4.08), ‘dividends paid’ (MSV 4.08), ‘past
performance of the firm’s stock’ (MSV 4.06) and the ‘organized financial markets’ (MSV 4).
The least influencing attribute of the individual investors are the ‘religious reasons’ (MSV 2.26), ‘ease of
obtaining borrowed funds’(MSV 2.66), ‘family member opinions’(MSV 2.88), ‘broker recommendation’
(MSV 2.92)and ‘increase of the firm’s involvement in solving community problems’(MSV 2.92).
S.NO
1
2
6.7:
TABLE 7: FACTOR WISE SUMMARY ANALYSIS
FACTORS
Over All MSV
Accounting Information
3.912
Neutral Information
3.474
RANK
1
2
3
Self-Image/Firm-Image Coincidence
3.434
3
4
Personal Financial Needs
3.423
4
5
Advocate Recommendation
2.94
5
INTERPRETATION:
Among the five classifications of factors influencing the individual investors, the ‘Accounting information’
(Overall MSV 3.912) of the company stands first, which is followed by ‘Neutral information’ (Overall MSV
3.474), ‘the firm’s Image’ (Overall MSV 3.434), ‘Personal financial needs’ (Overall MSV 3.423), and the
advocate recommendation (Overall MSV 2.94), which is the least influencing factor.
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FINDINGS
‘Organized financial markets’ (MSV 3.98) is being considered as the most influencing attribute on the investor
behavior under the factor self-image/firm-image coincidence whereas ‘Increase of the firm’s involvement in
solving community problems’ (MSV 2.92) and’ Religious reasons’ (MSV 2.26) are the least influencing
factors.
‘Condition of financial statements’ (MSV 4.1) is being considered as the most influencing attribute under the
factor accounting information whereas ‘Stock Marketability’ (MSV 3.65) and ‘Affordable share price’ (MSV
3.62) are the least influencing factors.
The most influencing attribute under ‘Neutral information’ is the ‘recent price movement in a firm’s stock’
(MSV 3.98) whereas the least influencing factors include ‘Coverage in the press’ (MSV 3.14) and
‘Government holdings’ (MSV 3.12) in the company.
The most influencing attribute under ‘Advocate recommendation’ is the ‘Friend or coworker
recommendations’ (MSV 3) whereas family member opinions (MSV 2.88) is the least influencing factors.
The most influencing attribute under personal financial needs is the diversification needs (MSV 4.08) whereas
the ease of obtaining borrowed funds (MSV 2.66) is the least influencing factors.
The most influencing attribute of the individual investors are the ‘condition of financial statements’ (MSV
4.10) which ranks first, followed by ‘diversification needs’ (MSV 4.08), ‘dividends paid’ (MSV 4.08), ‘past
performance of the firm’s stock’ (MSV 4.06) and the ‘organized financial markets’ (MSV 4)..
The least influencing attribute of the individual investors are the ‘religious reasons’ (MSV 2.26), ‘ease of
obtaining borrowed funds’(MSV 2.66), ‘family member opinions’(MSV 2.88), ‘broker recommendation’
(MSV 2.92)and ‘increase of the firm’s involvement in solving community problems’(MSV 2.92).
Among the five classifications of factors influencing the individual investors, the ‘Accounting information’
(Overall MSV 3.912) of the company stands first, which is followed by ‘Neutral information’ (Overall MSV
3.474), ‘the firm’s Image’ (Overall MSV 3.434), ‘Personal financial needs’ (Overall MSV 3.423), and the
advocate recommendation (Overall MSV 2.94), which is the least influencing factor.
SUGGESTIONS & CONCLUSION
The study entitled “Factors Influencing the Individual Investor Behavior” would help the share brokerage firms
to take care of the factors influencing their investor and also will help them to focus on those factors to provide
better customer Service. Since, the most influencing factors is found to be the accounting information group,
so care must be taken to give more attention to these factors in order to satisfy the desires of their investors
and also to attract more investors to deal with their stocks.
BIBLIOGRAPHY
[1] Business Reasearch Methods, Donald R Cooper, Pamela S Schindler, Tata McGraw-Hill Publishing Company
Limited, 9th edition, 2008.
[2] Nagy,R.A.and Obenberger,R.W., “Factors influencing investor behavior”, Financial Analysts Journal, Vol.50,
1994, pp.63-68.
[3] Merilkas,A., Merilkas,A.,and Prasad,D, Factors influencing Greek investor behavior on the Athens stock
exchange, Paper presented at the Annual Meeting of the Academy of Financial Services, Denver, Colorado,
October 8-9 2003.
[4] Shanthikumar,D. and Malmendier, Are small investors naive?, Stanford University Working Paper, 2003.
[5] Shleifer, A, Inefficient Markets: An Introduction to Behavioral Finance (Oxford University Press, 1999).
[6] Taffler,R.J., “What can we learn from behavioral finance?”, Credit Control, Vol.23,2002,
[7] Blume, M.E., and I. Friend. “The Changing Role of the Individual Investor”, John Wiley & Sons, New York,
New York, 1978
[8] Cohn, R.A., W.G. Lewellen, R.C. Lease and G.G. Schlarbaum, “Individual Investor Risk Aversion and
Investment Portfolio Composition,” Journal of Finance, Vol. 30, No. 2, pp. 605-620, 1975.
[9] LeBaron, D., G. Farrelly and S. Gula, “Facilitating a Dialogue on Risk: A Questionnaire Approach,” Financial
Analysts Journal, Vol. 45, No. 3, pp. 19-24, 1989.
[10] Baker, H.K., M.B. Hargrove, and J.A. Haslem, “An Empirical Analysis of the Risk Return Preferences of Individual
Investors,” Journal of Financial and Quantitative Analysis, Vol. 12, No. 3, pp. 377-389, 1977.
[11] Baker, H.K., and J.A. Haslem, “Toward the Development of Client-Specified Valuation Models,” Journal of Finance, Vol.
29, No. 4, pp. 1255-1263, 1974.
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[12] Karmakar, Madhusudan (2001), “Investment Behaviour of Household Sector- A Study of a Rural Block in
West Bengal”, The Indian Journal of Commerce, Vol. 54, No. 182, January-June, pp. 58-65.
[13] Benartzi, Shlomo and Richard H. Thaler (2001), “Naïve Diversification Strategies in Defined Contribution
Saving Plans”, American Economic Review, Vol. 91, No. 1, March.
[14] Sehgal, S. (2002), “Survey Study of Investors Behaviour in The Indian Capital Market”, Review of Commerce
Studies, Vol. 20-21, No. 1, January-June, p. 123.
[15] Rajarajan, V. (2002), “Determinants of Portfolio Choice of Individual Investors”, The Indian Economic
Journal, July-September, Vol. 50, No. 1, p. 81.
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BRAND RITUALS AND ITS IMPACT ON DEMAND OF THE
PRODUCT
ABSTRACT
Maryada Johari 1
Dr. Gulnar Sharma 2
This research on brand rituals was conducted in the forth trimester on my post graduation diploma in
marketing communications. I have conducted my study on the school going students of Bhopal. The
school I have chosen is Delhi Public School. The students here come from all the parts of the city and
brings with themselves a mind set and thinking way. The questionnaires were filled in two phases. The
first phase had students from 2nd and 3rd standard and second phase had children from 4th to 10the
standard. I was an amazing experience talking to them about their perceptions about brands.
From this study it is well concluded that brand rituals do have a significant impact on the brand recall
and demand of the product.
INTRODUCTION
The literal meaning of the term Ritual is the combination of rites and rites are defined as a ceremonial act.
According to BBDO rituals are defined “series of actions that move people emotionally from one place to
another. Rituals are sequences that are developed over time. Rituals are usually used in religion. We perform
many religious rituals and some of these become an integral part of our life.”
Brand ritual is the performance of an act by the consumers as defined by the brand (Owners). These days’
brand rituals are a common strategy adopted by marketers. Some rituals become a part of our behavior over
time.
A classic case of such a ritual is the checking of breath. The Ha.. Ha..Close- Up taught which we do with our
hand. The ritual in breaking the Kit Kat wafers is another successful brand ritual.
A global brand known for the ritual is that of Corona beer, the beer is to be taken through a lime kept at the
neck of the bottle. Another famous one is the James Bond induced ritual for Martini " Shaken not Stirred”.
Not all brand rituals are successful. Munch is trying to recreate the success of Kit Kat with no success. Horlicks
is also trying out a similar Hip rotating ritual. The latest Pepsi My Can also features a special way of holding
the can, which can be termed as a ritual.
Rituals are used as a brand element because of its stickiness effect. A popular brand ritual can make the
customer remember the brand and stick to it. The ritual also involves the customer with the brand. It also
creates a pattern in the consumer's mind, which can trigger loyalty.
Another important advantage of brand rituals is that it acts as a differentiator. When product features become
standardized, marketers look for non-feature differentiation. Brand rituals often differentiate the products from
the rest.
Marketers have to be careful while creating brand rituals. Some important guidelines for an effective brand
ritual are given below:
Brand rituals should be:
Simple: Complex rituals are failure for sure. Consumers should be able to do the ritual easily.
Relevant: Although this is not a rule, rituals will work better if its relevant to the brand.
Fun: Customers should enjoy performing the ritual.
Consistent: An important factor in the success of a ritual. Once the ritual is finalized, the marketer must ensure
that there is consistency in promotion of the ritual.
Meaningful: The customers are not going to own a ritual unless it makes some sense for the customers.
1
2
Research Scholar JICM
Director JLU School of Management, Bhopal
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If carefully created, brand rituals can be a powerful brand element. The ritual can be a double-edged sword, if
not created properly, the ritual can often diminish the brand's equity too.
LITERATURE REVIEW



An Empirical Analysis of the Antecedents and Consequences of Brand Rituals
Katja-Maria Prexl, Zeppelin University, Germany Peter Kenning, Zeppelin University, Germany
http://www.zu-daily.de/daily-wAssets/pdf/Ausfuehrlicher-Abstract-Masterarbeit-Prexl.pdf
Move Me: On Stories, Rituals, and Building Brand Communities
Monday, 16 Sep 2013, 15:40 to 17:20
Katharine Sieck
Olsen Marketing
http://epiconference.com/2013/program/sessions/move-me-stories-rituals-and-building-brandcommunities
http://brandrituals.net
Insight and ideas on how to bond customers with brand for life.
By: Zain Raj
OBJECTIVES
[1] To study the impact of brand rituals on brand credibility, brand believability and consumer’s buying
behavior.
[2] To study the effect of brand ritual on brand identification of the product.
[3] To study the following of the brand ritual for a product.
HYPOTHESIS
Hypothesis (HA): Brand rituals have no significant effect on the buying decision and demand of the product
to which the brand ritual is attached.
Null hypothesis (HN): Brand rituals have a significant effect on the buying decision and demand of the
product to which the brand ritual is attached.
RESEARCH GAP
So far studies have been on this topic are done either outside India or in metro cities of India. But no study
regarding Brand Rituals has been conducted on Bhopal city school going children.






Area of study: Advertising and consumer behavior.
Source of data: The source of secondary data in this report is a blog by Zarin Raj
Variables used: The variables used in this report are
o School going children below teenage
o School going children of teenage
o Demand generated
o No demand generated
o Products with brnd rituals
o Products without brand rituals
Methods used: The method to collect the sample’s observations is through questionnaires. The
method used to evaluate the results of this research are:
o Percent analysis
o Chi square test
Sample:
o Universe: The universe for this study is up to 15years of school going children.
o Sample: The sample that I have chosen for this study are school going children of Delhi Public
School, Bhopal from 2nd to 10th standard. I have questionnaire filled from the size of 305
students of Delhi Public School, Bhopal.
Limitations of the study: The limitations study is that being a collage student, I was not able to take
all the school going kids as my sample. Had I taken all the school students, the study would have been
more accurate.
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DATA ANALYSIS
Firstly we are doing percentage analysis to study the impact of brand ritual on brand recall. The students here
are divided into two classes i.e.
Below teenage: from 2nd standard to 8th standard
Teenage students: from 9th to 10th standard.
For 2nd standard:
The percentage of children who identified the brand Correctly
= No. of students who gave the correct answer x 100
Total number of answers given
i.e.= 186 x 100 = 79%
235
For 3rd standard
i.e.= 137 x 100 = 76%
204
For 4th standard
i.e.= 102 x 100 = 76%
144
For 5th standard
i.e.= 166 x 100 = 72%
222
For 6th standard
i.e.= 185 x 100 = 83%
222
For 7th standard
i.e.= 190 x 100 = 81%
234
For 8th standard
i.e.= 169 x 100 = 81%
198
For 9th standard
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i.e.= 146 x 100 = 78%
186
For 10th standard
i.e.= 166 x 100 = 89%
186
Hence the total percentage of children who are below teenage and have recalled the brand correctly are
= 79+67+76+72+83+81+85 x 100
700
= 78%
And, the total percentage of children who are below teenage and have recalled the brand correctly are
= 78+89 x 100
200
= 84%
Alternate Hypothesis (HA): Brand rituals have no significant effect on the buying decision and demand of the
product to which the brand ritual is attached.
Null Hypothesis (HN): Brand rituals have a significant effect on the buying decision and demand of the product
to which the brand ritual is attached.
BRAND RITUAL/
DEMAND
DEMAND
WITH BRAND
RITUAL
O =107
(E = 69)
O =29
(E = 67)
136
NO DEMAND
TOTAL
WITHOUT BRAND
RITUAL
O = 47
(E = 85)
O =122
(E = 84)
169
TOTAL
154
151
305
Where, O is observed frequency and E is expected frequency.
X2= Σ ((O-E)2)/E)
O
107
47
29
122
Total
E
69
85
67
84
(O-E)
38
-38
-38
38
(O-E)2
1444
1444
1444
1444
((O-E)2)/E
21
17
22
17
77
= 77
Degree of freedom= (no. of rows-1) (no. of columns-1) = 1
At 5% significance level and with degree of freedom 1, the chi-square table shows the table value is 3.84 and
the calculated value is 77.
INTERPRETATION
Percentage analysis test:
According to the percentage analysis the total percentage of children who are below teenage and have recalled
the brand correctly are 78%.
And, the total percentage of children who are below teenage and have recalled the brand correctly are 84%
Chi square test results:
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As per the data analysis the hypothesis of this study i.e. “Brand rituals have no significant effect on the buying
decision and demand of the product to which the brand ritual is attached” has to be rejected and Null hypothesis
proves to be correct.
CONCLUSION
From the above study we can conclude that brand rituals do have a significant effect on the brand recall and
demand of the product to which a brand ritual is attached.
REFERENCES
[1] Zarin (2013) Brand rituals [Internet].
[2] Available from: <http://brandrituals.net>
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BRAND IMPACT ON CUSTOMER PURCHASE INTENTION –
A STUDY FOR INDIAN CLOTHING INDUSTRY
ABSTRACT
Dr.Prof. Gulnar Sharma 1
Mr.Sushil Raturi 2
The presence of multiple National brands in the apparel categories on one hand has proved beneficial to
the customers in terms of wide choices, on the other hand has led to immense competition amongst the
national brands. The brands are continuously searching for attributes which will help them in attracting
and retaining customer .The purpose of this study is to explore the key attributes of national brand which
has an impact on the customer purchase intention. The main focus of this quantitative study is to measure
the impact of quality, celebrity endorsement, price, physical appearance and prestige of national brands
on the customer purchase intention. A questionnaire was prepared and pilot survey was conducted to
finalize the questionnaire followed by data collection from one thousand customers. The finding of this
study shows that quality, price, physical appearance and prestige of National Brand have significant
relationship with purchase intention while the role of celebrity endorsement was found to be insignificant.
KEYWORDS: Quality, Celebrity endorsement, Price, Physical appearance, Prestige, National Brand,
Purchase Intention
INTRODUCTION
The evolution of the apparel sector , one of the fastest growing sector of the retail business in India can be
looked at from three phases, i.e. pre 1990’s, 1990-2000 and Post 2000. The pre 1990’s was the period of tailor
made apparels with few readymade apparel options available to consumers , however the industry grew during
1990-2000 and can be called as an era of readymade apparels with new brands flourishing during this period.
The phase of 2000 onwards brought revolution in the Indian apparel Industry with the emergence of new retail
formats of selling apparel, entry of international apparel brands and consumer getting aware of brands and
fashion.
While this growth in number of apparel brands and apparel retailers turned out to be good for consumers as
they could choose from wide variety of brands; the retailers, designers and the brands started developing point
of differentiation in their product offering to attract and keep customers loyal towards their brands leading to
emergence of large number of national brands. The apparel brands are continuously looking for extrinsic and
intrinsic brand attributes which has an impact on the customer purchase intention. Therefore, a study was
conducted with the objective mentioned below to address this issue.
OBJECTIVE OF STUDY
To measure impact of National Brand attributes on customer Purchase intentions. Through this objective, the
researcher found answers to the following issues:
 Which are those extrinsic cues of National brand that has an impact on the customer purchase
intentions?
 Which are those intrinsic cues of National brand that has an impact on the customer purchase
intentions?
LITERATURE REVIEW
The American Marketing Association defined branding as a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors. Aaker (1996) stated that from the consumers’ point of view,
1
2
Director Jagran LakeCity University Bhopal
Associate Professor Fashion Management Studies ,NIFT Mumbai
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branding helps to create clarity in their minds by communicating the source of the offering. From the
company’s perspective, brand was defined as source of differentiation by Grace and O’Cass (2005).
According to Keller (2003), one of the most important and common form of brand was created by
manufacturers and was called as National brand because of their prominence throughout the country at various
retail settings.
Keller (1993) defined attributes as descriptive characteristics that characterize a product or service. In one of
the study Keller (1998) mentioned that brand attributes are of two types: intrinsic and extrinsic.
Intrinsic brand attributes are the attributes which are related to the products. According to Keller (1993) they
are related to products physical composition and service request. These attributes are distinguished by branded
products essential ingredients and features which determine the nature and level of product performance.
Intrinsic brand attributes are measurable. The intrinsic attributes are flavour, colour, texture, quality, style,
design, features of a product.
Keller (1993) defined extrinsic brand attributes as external aspects of product or services that related to its
purchase or consumption. They are also called as non product related attributes. According to Li (2004) they
are related to brands symbolic attributes and may also serve as a measure of product quality. They satisfy
consumers underlying needs for self esteem. They allow consumers to experience positive emotions and to
help them communicate to others their values and personal features. According to Fandos and Flavian (2006)
extrinsic characteristics are shape and brand of some product.
PURCHASE INTENTION
According to Dodds, Monroe et al. (1991) purchase intention means attempting to buy a product. According
to Kotler (2000), consumer behaviour occurs when consumers are stimulated by external factors and come to
a purchase decision based on their personal characteristics and decision making process. These factors included
choosing a product, brand, a retailer, timing, and quantity. This means consumers’ purchasing behaviour is
affected by their choice of product and brand. Consumers’ purchase intentions always arise after consumer
perceived value and perceived benefit.
Subhadip (2006) researched on the impact of celebrity endorsement on the purchase intentions and mentioned
that celebrity endorsements can be traced back to 1870s when Henry Ward Beecher endorsed Waltham
watches in a print advertisement. David and Benedikte (2004)mentioned that celebrity endorser should be
relevant to the product to which endorser is going to advertise ,as well argue with solid and logical reasoning
about the product and that he / she truly likes the product.
Rashid et al. (2010) found through their study that customer knowledge, celebrity endorsement and product
packaging /design have significant relationship with purchase intention while the mediating role of perceived
value was not found significant. A study by Karina (2008) stated that an endorser with high celebrity status
more positively influences the purchase intentions of the consumers.
Eckman stated that price and brand are the most important of all. Beaudoin et al (2000) identified 12 attributes
that correlated with attitudes when purchasing apparels namely: good fit , durability , ease of care ,favourable
price, , comfort , quality , colour , attractiveness , fashionableness , brand name , appropriateness for occasion
and choice of style. Dickerson (2000) studied the relative importance that consumers gave to five garment
attributes when making purchasing decision namely: price, care, country of origin, quality and style. Shim and
Kotsiopulos (1993) researched the apparel shopping orientation of consumers on the basis of nine factors
namely: appearance/ fashion conscious, , brand conscious , convenient /time conscious , shopping mall
oriented, local store oriented , apathetic towards made in USA , catalogue oriented , economy / price conscious
and credit oriented..
A study of Burger and Herbst (2002) identified certain clothing attributes like style, price, brand and outlet
choice as attributes which affect consumers purchasing decision .It said that brand name is the most important
attributed considered by teenagers. A study by Ernest, Retha (2003) found that style is the most important
attribute of apparel to women when making purchase decision followed by price.
MODEL
The following Extrinsic and Intrinsic attributes were used for the study.
Extrinsic attributes: Customer perception of Brand prestige, Celebrity endorsement and Price.
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Intrinsic attributes: Quality and Physical appearance
The independent variables selected for the study are: Quality, Celebrity endorsement, Price, Physical
appearance and Prestige. The dependent variable is purchase intention.
The Research Design used was Quantitative Research. The questionnaire was classified in following four
categories:
Introductory questions: All Closed ended with dichotomous and multiple choice / multiple response type of
questions.
Main body of questions – Questions was designed based on objective and hypothesis of the research study.
Question was in the form of 5 point Likert Scale on Brand attributes and purchase intention. All the statements
in this question were measured with a 5- point Likert scale ranging from 1 “ Strongly disagree to 5 “ strongly
agree” .
There were categorical questions at the end of the questionnaire to understand the profile of the respondents
in terms of age, gender, qualification, profession, Income and place of residing
HYPOTHESIS





H1: Quality of National brand apparel has a significant impact on the purchase intention of customers.
H2: Celebrity endorsement of National brand apparel has a significant impact on the customer
purchase intention.
H3: Price of National Brand apparel has a significant impact on customer purchase intention.
H4: Physical appearance of National Brand apparel has a significant impact on customer purchase
intention.
H5: Prestige of National Brand apparel creates more purchase intention.
ANALYSIS
The analysis was conducted in following three stages:
[1] Reliability test
[2] Correlation
[3] Regression
[1] RELIABILITY TEST:
The independent variables and the dependent variable were tested for reliability. The reliability of the scale
used in this study was calculated by Cronbach’s coefficient alpha. According to Nunnally & Bernstein (1994),
the coefficient alpha values exceeding the minimum standard of 0.7 provides good estimates of internal
consistency reliability. The Chronbach alpha was calculated, the result is shown in Table 1 below.
Table 1: Reliability Statistics of variables for National Brands
Variable
Quality
Celebrity endorsement
Reliability Cronbach's Alpha
0.777
0.743
No. of Items
5
4
Price
0.955
3
Physical appearance
0.787
4
Prestige
0.987
5
Purchase Intention
0.855
3
[2] CORRELATION
The correlation matrix between independent variables and dependent variable was calculated and is presented
below in Table 2.The quality of National Brand has significant relation with customer purchase intention and
this relation is 70.9% at .01levels. Price of National brand was also found to have significant relation with
customer purchase intention at 62.9% at .01levels. The physical appearance and prestige of National brand
were also found to have significant relation with customer purchase intention with 64.6% and 98.5%
respectively at .01 level. Only celebrity endorsement was found to have insignificant relation with purchase
intention of customer.
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Table 2: Correlation Matrix for National Brand variables
Independent variable
Purchase Intention_mean
Quality _mean
Celebrity Endorsement_mean
Price_mean
Physical Appearance_mean
Prestige_mean
Purchase Intention_mean
Pearson Correlation
.709(**)
Sig. (1-tailed)
0
N
Pearson Correlation
953
.067
Sig. (1-tailed)
0.02
N
953
Pearson Correlation
.629(**)
Sig. (1-tailed)
0
N
Pearson Correlation
953
.646(**)
Sig. (1-tailed)
0
N
953
Pearson Correlation
.985(**)
Sig. (1-tailed)
0
N
Pearson Correlation
953
1
Sig. (1-tailed)
.
N
953
** Correlation is significant at the 0.01 level (1-tailed).
[3] REGRESSION
Quality and Purchase Intention:
After the correlation analysis, regression was done on independent and dependent variable. In the model
summary, R2 =0.503, explaining the model at 50.3%, beta value is 70.9% explaining the variation intensity of
independent variable on dependent variable (Table 3)
Table 3: Regression relation of Quality and Purchase intention
Model Summary
Model
1
R
R Square
Adjusted R Square
.709(a)
.503
.502
a Predictors: (Constant), Quality mean
Std. Error of the Estimate
.46060
Coefficients (a)
Unstandardized
Coefficients
Model
1
B
(Constant)
1.133
importance given to
.713
quality
Standardized
Coefficients
Std. Error
.094
Beta
.023
.709
T
Sig.
12.045
.000
31.012
.000
a Dependent Variable: Purchase intention National Brand
Celebrity endorsement and Purchase Intention:
Regression analysis was performed on celebrity endorsement and purchase intention (Table 4). In the model
summary, R2 =0.004, explaining the model at 0.4%, beta value is 6.7% explaining the variation intensity of
independent variable on dependent variable.
Table 4: Regression relation of Celebrity Endorsement and Purchase intention
Model Summary
Model
1
R
.067(a)
R Square
.004
Adjusted R Square
.003
.65177
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a Predictors: (Constant), Celebrity endorsement mean
Coefficients (a)
Unstandardized
Coefficients
Model
Standardized
Coefficients
B
Std. Error
3.812
.101
.052
.025
(Constant)
IMP_CENB
T
Sig.
37.880
2.061
.000
.040
Beta
.067
Price and Purchase Intention:
In the model summary, R2 =0.395, explaining the model at 39.5%, beta value is 62.9% explaining the variation
intensity of independent variable on dependent variable (Table 5)
Table 5: Regression relation of Price and Purchase intention
Model Summary
Adjusted R
Model R
R Square
Square
1
.629(a)
.395
.394
.50807
a Predictors: (Constant), Price mean
Coefficients (a)
Unstandardized
Coefficients
Model
Standardized
Coefficients
B
Std. Error Beta
1.913
.086
.528
.021
.629
(Constant)
IMP_PNB
T
Sig.
22.261
24.920
.000
.000
Physical appearance and Purchase Intention
In the model summary , R2 =0.418 , explaining the model at 41.8%, beta value is 64.6% explaining the variation
intensity of independent variable on dependent variable(Table 6)
Table 6: Regression relation of Physical appearance and Purchase intention
Model Summary
Adjusted R
Model R
R Square
Square
1
.646(a)
.418
.417
.49848
a Predictors: (Constant), Physical appearance mean
Coefficients (a)
Model
Unstandardized
Coefficients
Standardized
Coefficients
B
Std. Error Beta
(Constant)
1.314
.105
IMP_PANB
.679
.026
.646
T
Sig.
12.553
26.117
.000
.000
Prestige and Purchase Intention:
In the model summary, R2 =0.970, explaining the model at 97.0%, beta value is 98.5% explaining the variation
intensity of independent variable on dependent variable (Table 7)
Table 7: Regression relation of Prestige and Purchase intention
Model Summary
Adjusted R Std. Error of
Model R
R Square
Square
the Estimate
1
.985(a)
.970
.970
.11299
a Predictors: (Constant), IMP_PPNB
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Coefficients (a)
Unstandardized
Coefficients
Standardized
Coefficients
Model
1
B
Std. Error Beta
(Constant
.049
.023
)
IMP_PP
.988
.006
.985
NB
a Dependent Variable: Purchase intention of National Brand
T
Sig.
2.161
.031
175.603
.000
FINDINGS







The correlation and Regression Results shows quality, Price, Physical appearance and prestige of
National brand are significantly related to customer purchase intention. Thus we accept H1, H3, H4,
H5 and reject H2.
Inferences
Quality of National brand apparel has a significant impact on the purchase intention of customers.
Celebrity endorsement of National brand apparel has no significant impact on the customer purchase
intention.
Price of National Brand apparel has a significant impact on customer purchase intention.
Physical appearance of National Brand apparel has a significant impact on customer purchase
intention.
Prestige of National Brand apparel has a significant impact on customer purchase intention.
CONCLUSION
The main purpose of the study was to explore the relationship between the independent variables (Quality,
Celebrity endorsement, Price, Physical appearance, Prestige) and dependent variable (customer purchase
intention) for National Brand apparel product category in India. The study brought out that quality, Price,
physical appearance and Prestige of National brand have significant relation with dependent variable i.e.
customer purchase intention of National brand while celebrity endorsement of National brand was found to
have insignificant relation with customer purchase intention.
REFERENCES
[1] Abhishek & Abraham Koshy (2008), “Quality perceptions of Private Label Brands”, Indian Institute of
Management, Research & Publication, W.P No: 2008-02-04, 1-22
[2] Abernathy, F., Dunlop, J., Hammond, J., & Weil, D. (1999),A Stitch in Time: Lean retailing and the
transformation of manufacturing: Lessons from the apparel and textile industries,New York: Oxford University
Press
[3] Ailawadi & Keller (2004), “Understanding Retail Branding: Conceptual Insights & Research Priorities, Retail
Branding, 1-34
[4] Ailawadi, K., Neslin, S., & Gednek, K. (2001), Pursuing the value-conscious consumer: Store brand versus
national brand promotions. Journal of Marketing, 65, 71- 90
[5] Baidaray Debjani (2011), “Changing face of Apparel Retail in India”, Retail Biz, Volume 8, Issue 11, 9-14
[6] Baldinger, A., Blair, E., & Echambaldi, R. (2002 ), Why brands grow,Journal of Advertising Research, 42, 7-15
[7] Bhatnagar, G. (2004), Retail Revolution, Indian Journal of Marketing, Volume 34, Number 11, Page 24-31
[8] Bontems, Philippe. , Monier Sylvette., & Requillart Vincent. (1999), Strategic effects of private labels, European
Review of Agricultural Economics, 26(2):147-165.
[9] Chakraborty Samrat (2011) “Perceptions & Buyer Behaviour Towards Private-Label Colas: An Exploratory
Study to Understand the Views of the Store Managers of United Kingdom:, The IUP Journal of Marketing
Management, Volume 10 , Issue 1, 5-18
[10] Chintagunta, Pradeep K., Bonfrer Andre., & Song Inseong. (2001), Investigating the effects of store brand
introduction on retailer demand and pricing behavior, Working paper, Graduate school of business, University
of Chicago
[11] Collins- Dodd, C., Zaichkowsky, J., (1999) National brand responses to brand imitation: Retailers versus other
manufacturers. The Journal of Product and Brand Management, 8(2), 96-105.
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TOURISM AND TRAVEL INDUSTRY: A NEW PATH FOR
PROSPECTIVE ENTREPRENEURS
ABSTRACT
Mr. Amit Kumar Uppal1
Tourism and Travel comprising of various elements such as- hotels, transport, ancillary services and
many more for tourist. Tourism entrepreneurship is a research area that has not received a great deal of
attention. Airline, Hotel owner, Tour operators, Travel agents etc. are the tourism entrepreneur who are
said to be the key players in tourism The research paper is based on the scope of tourism
entrepreneurship. This study comprises of the characteristics of the tourism entrepreneur and argues
sustainability of these entrepreneurs in the tourism industry. Here the impact of raising the number of
tourism entrepreneur and the difference that creates in the tourism industry is also discussed.
KEYWORDS: tourism, entrepreneur, sustainability, characteristics, player
INTRODUCTION
Travel is as old as mankind on the Earth (Chand, 2009). Tourism encompasses the activities of persons
travelling to and staying in places outside their usual environment for not more than one consecutive year for
leisure, business and other purposes(World Tourism Organization, 1993). Tourism and travel, encompassing
the transport, hospitality, visitor services and gaming sectors are considered to be the world’s largest service
industries(World Travel and Tourism Council, 1996). 1 The term travel industry, tourism industry and travel
and tourism industry are used interchangeably to refer to the industry made up of businesses that provide
tourism and travel related services. However some scholars argue that travel is rooted in the ancient past while
tourism is recent phenomenon of modern origin but for the present origin both are same.(Chand, 2009).
TOURISM IN INDIA
India has the potential to become a major tourist destination in the world with the demand growing at 10.1%
p.a., the World Travel and Tourism Council (WTTC) has predicted. According to the latest research by
Europe's leading Travel Magazine Conde Nast Traveller, India has entered the top ten tourist destinations of
the world for the first time. India receives nearly 2.5 million visitors every year and 30% of them are tourists.
The inbound tourism is concentrated in the North and Rajasthan. The South accounts for about 25% of inbound
tourism.
India registers record foreign tourist arrivals in 2006 India achieved a 13.0 percent growth in terms of foreign
tourist arrivals in the year 2006. From 3.92 million registered arrivals in 2005, the number has gone up to 4.43
million in 2006. Foreign exchange earnings from tourism have also shown a growth from Rs.25,172 crores in
2005 to Rs.29,604 crores in 2006, achieving an increase of 17.6 per cent. According to the latest World
Tourism Organization statistics, 842 million international tourist arrivals were recorded last year of which
India's share was 0.52 per cent. Though much smaller countries like Singapore received twice the number of
tourists, the upside of the scenario is that the average duration of stay of a tourist in Singapore is 4.2 days, as
against 26 days in India, according to the official data, and 12 days, according to the Indian tourism industry.
At the WTM London in 2006, India was the cynosure of all eyes with India
Tourism winning four World Travel Awards. The four awards were for “Asia’s leading destination”, Asia’s
leading tourism & convention bureau”, “The World’s leading travel destination TV commercial” of its
Incredible India campaign and “The World’s leading responsible tourism project” for the Endogenous Tourism
Project.
The studies shows that the tourism industry is growing in India with a fast pace. The growth of this sector
ensures the improved scope of the tourism entrepreneurship. As the tourist arrival increases, the demand
increases and demand needs to be satisfied. For fulfilling the demand the tourism serving players i.e. tourism
entrepreneurs needs to equate the demand. It ensures the scope of tourism entrepreneurship.
1
Assistant Professor in Tourism Department, Aditya College Gwalior(M.P.)
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TOURISM ENTREPRENEURSHIP
Tourism is a complicated setting involving a diverse group of active stakeholders (Sheehan et al., 2007) who
each have different interests in the tourism market (Pike, 2005). For destination stakeholders such as
Destination Marketing Organizations (DMOs), accommodation providers, Travel Agents, Tour Operators and
activity operators to survive in an increasingly competitive environment, it is essential that a consistent
approach is used by all tourism stakeholders operating within a single destination (Sheehan et al., 2007).
Achieving competitive advantage in times of rapid change requires tourism stakeholders to have a clear
understanding of the direction of change and its implications for business or destination management. Since
tourism is essentially integrated with other sectors in the economy, tourism trends cannot be considered in
isolation from key drivers that will shape the world of the future.
There are some discussion regarding the concept of entrepreneurship and entrepreneurial skills(de wolf et al.,
2007; McElwee, 2005). One definition of entrepreneurship is presented in Green Paper from European
Commission(2003, p.6), ‘Entrepreneurship is the mindset and process to create and develop economic activity
by blending risk, creativity and/or innovation with sound management within a new or an existing
organization.’
METHODOLOGY
Semi-structured, personal interviews were conducted with seven key stakeholders in the tourism industry who
possess many years of combined experience in working with Tourism Business including tour operators, travel
agents and who are actively involved in serving and improving industry performance.
The pre arranged interviews took between 40 and 60 minutes.
The questions covered the following areas:
 Skills required for the successful tourism entrepreneur.
 Scope of tourism entrepreneur;
 Sustainability of the tourism entrepreneurs (Hoteliers, Tour Operators, Travel Agents, Tour Guides
etc.) in the industry
 Impact of raising number of tourism entrepreneurs in the industry
 Challenges in the industry as a tourism entrepreneur
Interviewees were given the opportunity to reflect on, expand and add to any issues which arose during the
interviews.
STUDY RESULTS
On the basis of the interviews and discussion with the tourism entrepreneurs, following findings can be
concluded[1] Skills required for becoming a successful tourism entrepreneur
Entrepreneurship is the important force behind the success of any industry (importance of
entrepreneuship,2005). Entrepreneurial skills are the key factors that create the success and growth of the
industry. Skills required to become a successful entrepreneur is:
(a) Innovator: Innovation is the key skill that can create a difference in the tourism industry. Surviving in
the industry with the lack of innovation may lead the venture monotonous. Innovation is required right
from the entry level to the whole of life span of the venture. Innovation can be in the form offerings,
marketing, customer dealings, sustaining and in the endless ways.
(b) Dynamic: The tourism is a dynamic industry and requires the changes with the time. One cannot keep
oneself traditional in the industry. The entrepreneurs are to be dynamic in nature as it is the hard
requirement of the tourism sector.
(c) Risk Bearer: As the tourism is a risk based industry as it get affected with the natural calamity,
seasonality, political environment of a place and cultural misbalance. So the entrepreneurs are required
to be the risk bearers because the industry will not always necessarily yielding the profits.
(d) Updated: Tourism is a vast industry comprising every aspect of knowledge. So keep oneself strong
enough in the industry one must be updated with the happening around the world to make things
smooth and easy for the customers (tourists).
[2] Scope of tourism Entrepreneurs
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Tourism Entrepreneurship contributes to a country’s economy by promoting innovation, engendering
competition, creating employment and thus contributes to economic wealth and spending power. In particular,
in developed and developing countries both, tourism entrepreneurship is vital to tourists’ experiences and
satisfaction and to destination and community development. As the tourism is on the growth stage in the
product life cycle, in India, tourism entrepreneurship has a wide scope of expansion.
[3] Sustainability of the tourism entrepreneurs in the industry
The tourism entrepreneurs comprises of the travel agents, hoteliers, tour operators, tour guides. Since tourism
is a growing industry, it has a wide scope and sustainability as compared to the other industry. Since the
competitors are less in numbers, so it creates the healthy chances of the growth of the entrepreneurs, not only
professionally, socially too. The tourism is dynamic in nature and keeps on changing. So for sustaining in the
tourism industry as a tourism entrepreneur, one needs to feed the changes. Tourism entrepreneur must keep
changing according to the need of the market and customers to assure its long run sustainability.
[4] Impact of raising number of tourism entrepreneurs in the industry
By the efforts of the government and some organizations the awareness is being created in the society about
the tourism entrepreneurship and its growth. Tourism entrepreneurs will be the strong pillars for the industry.
Lack of entrepreneur always weakens the industry and the same problem the tourism industry is facing. The
numbers of present tourism entrepreneurs are much lesser than the required which is creating a gap in tourism
needs and tourism supply. Therefore, it is required that the number of tourism entrepreneurs be raised, so that
balance can be created in the gap created in the tourism demand and supply.
[5] Challenges in the industry as a tourism entrepreneur
Tourism is a small scale business, thus creates the low profits as compared to the other industries. Therefore it
requires time and patience in the venture.
As the industry is seasonal, so the tourism flow fluctuates with the season and that makes the venture low
sometimes.
Tourism is a vulnerable industry. It gets affected with the political, social, environmental, economic and
technological factors of a destination. Any kind of instability in the mentioned factors, certainly affects the
tourist flow. So this vulnerability creates the uncertainty in the future of the tourism entrepreneurship.
When a tourism entrepreneurs are about to start up their ventures, they found the lack of startup capital for
their venture. Even the financial institutions relies less when financing such ventures due to the vulnerability
and uncertainty of the tourism industry.
SUGGESTIONS
The study identifies some of the vital areas where better management is much needed. Following findings will
give insight into the related issues of the study:
[1] The tourism is a risk based industry and there is no way to eliminate all the risk from the tourism
business but as a tourism entrepreneur success can be planned through the proper planning and
preparation for each and everything before, during and after the venture.
[2] Tourism Industry and tourism entrepreneurship are closely related to each other. Policy makers need
to be more proactive in their approach to boost tourism development in the country. There is a huge
need for transparency in policy formation and clarity in their implementation. Government and
industry need to work together to create strong hospitality and tourism development across the country
in order to boost up the business of the tourism entrepreneurs.
[3] The lack of awareness can be felt in the society toward the tourism entrepreneurship. So it is expected
to more awareness should be created in the field of tourism entrepreneurship and its scope.
[4] Trained manpower is lacking and biding the growth of tourism entrepreneurship. Although the various
programs are being run by the ministry of tourism and other organizations, but it is not found up to the
mark. It may not be reaching the correct crowd or the content of the curriculum is not what is required.
Such curriculum should be designed and imparted to train human resources which would cultivate
professional, vocational, and entrepreneurial skills
[5] The participation of the local population in the tourism industry contributes to the balanced
development of both the industry and the nation. Indeed, the future of the tourism industry may depend
on the development of a vibrant and innovative group of indigenous entrepreneurs who will be able to
effectively respond to the opportunities and challenges of the industry.
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[6] The government must also play a leading role by incorporating the concept of entrepreneurial
development into its national tourism policy. It would also be prudent to promote and support
entrepreneurial development through tailored long-term programs.
[7] Financial Institutions must step forward to provide financial assistance in the easy going way. This
will surely motivate the entrepreneurs to join tourism industry as they will be getting the financial
support at ease. The reason behind it is the financial assistance for the starting up becomes a major
hurdle while the tourism entrepreneurs is about to start their venture.
CONCLUSION
The tourism entrepreneurship will certainly bring the growth in the economic development of India. Being
service based industry, the trained man power and the financial assistance will help to reach the tourism
entrepreneurship to a new heights. As the tourism has the scope, so does the tourism entrepreneurship.
Therefore, several policies and plans needs to be implemented and the suggestions given above should be
considered while implementing such policies and plans. This will make the tourism entrepreneurship a wide
and strong profession to be possessed.
REFERENCES
[1] Gurel, E., Altinay, L., & Daniele, R. (2010). Tourism students’ entrepreneurial intentions. Annals of Tourism
Research, 37(3), 646-669.
[2] Haugen, M. S., & Vik, J. (2008). Farmers as entrepreneurs: the case of farm-based tourism. International Journal
of Entrepreneurship and Small Business,6(3), 321-336.
[3] Hollick, M., & Braun, P. (2005). Lifestyle entrepreneurship: the unusual nature of the tourism entrepreneur.
Proceedings of the Second Annual AGSE International Entrepreneurship Research Exchange, Swinburne Press,
Melbourne, 10-11.
[4] Neblett, J., & Green, M. B. (2000). Linking development, indigenous entrepreneurship and tourism, with special
reference to Barbados. Geography Online, 1(2)
[5] SARAVANAN, A., & RAO, Y. V. Economic Opportunity through Rural Tourism: An Empirical Study.
[6] Tkaczynski, A., Rundle-Thiele, S. R., & Beaumont, N. (2009). Segmentation: A tourism stakeholder view.
Tourism Management, 30(2), 169-175.
[7] Chand, Mohinder(2000). Travel Agency Management: An Introductory Text. New Delhi: Anmol Publications,
[8] Negi, Jagmohan(2012), Travel Agency and Tour Operation, New Delhi, Kanishka Publisher.
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FACTORS AFFECTING CUSTOMERS SATISFACTION ON TELECOMMUNICATION SERVICES: A STUDY OF GWALIOR
ABSTRACT
Ajay Phaltankar1
Prashant Kushwaha2
Tele-communication Industry is the fastest growing industry in India. BSNL, MTNL, Reliance, Idea,
Airtel, Vodaphone, Docomo are the major players in this industry. Millions are customers are connected
with this industry. Telecommunication industry is based on service, more the good services more the
opportunity to sell their products. This study is based on Services for customer satisfaction of telecommunication. For this research I have collected the data from various respondents on demographic
factor and tried to involve on the basis of different categories, like gender, age, marital status, education,
income and occupation. In this research I have tried to find out the factor which attract the customer to
use the tele-communication services.
INTRODUCTION:
In 1850 experimental electric telegraph started for first time in India between Calcutta (Kolkata) and Diamond
Harbor. In 1851, it was opened for the use of the British East India Company. In early1881, Oriental Telephone
Company Limited of England opened telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras
(Chennai) and Ahmadabad. On the 28th January 1882 the first formal telephone service was established with
a total of 93 subscribers.
The history of mobile phones can be traced back to two-way radios permanently installed in vehicles such as
taxicabs, police cruisers, railroad trains, and the like. Later versions such as the so-called transportable or "bag
phones" were equipped with a cigarette lighter plug so that they could also be carried, and thus could be used
as either mobile two-way radios or as portable phones by being patched into the telephone network.
India is the world’s fastest growing industry in the world in terms of number of wireless connections after
China, with 811.59 million mobile phone subscribers.
From the year 1902 onwards, India drastically changes from cable telegraph to wireless telegraph, radio
telegraph, radio telephone, trunk dialing. In the year 1975 Department of Telecom (DoT) was responsible for
telecom services in entire country. A decade later Mahanagar Telephone Nigam Limited (MTNL) was chipped
out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by
the Government for private investment. In1995 TRAI (Telecom Regulatory Authority of India) was setup.
This reduced the interference of Government in deciding tariffs and policy making. The Government of India
corporatized the operations wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar
Nigam Limited (BSNL). In last 10 years many private operator’s especially foreign investors successfully
entered the high potential Indian telecom market. According to the world telecommunications industry, India
will have 1.200 billion mobile subscribers by 2013 “Customer Satisfaction, a business term, is a measure of
how products and services supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four of a balanced scorecard.”
The degree of satisfaction provided by the goods or services of a company as measured by the number of
repeat customers. Customer satisfaction is a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation.
Customer satisfaction has significant implications for the economic performance of firms (Bolton, Lemon,
and Ver- hoef 2004). For example, customer satisfaction has been found to have a negative impact on
customer complaints and a positive impact on customer loyalty and usage behavior (Bolton 1998; Fornell
1992). Increased customer loyalty may increase usage levels (Bolton, Kannan, and Bramlett 2000), secure
1
2
Asst. Professor, Boston College for Professional Studies, Gwalior
Asst. Professor, Boston College for Professional Studies, Gwalior
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future revenues (Rust, Moorman, and Dick- son 2002), and minimize the likelihood of customer defection
(Anderson and Sullivan 1993; Mithas, Jones, and Mitchell 2002). Customer satisfaction may also reduce
costs related to warranties, complaints, defective goods, and field service costs (Fornell 1992). Finally, in a
recent study, Anderson, Fornell, and Mazvancheryl (2004) find a strong relationship between customer
satisfaction and Tobin’s q (as a measure of shareholder value) after controlling for fixed, random, and
unobservable factors. The concept of customer satisfaction has for years formed the cornerstone of the
marketing concept (e.g. Drucker 1954; Levitt 1960; Houston 1986; Gronroos 1990). Thus, measurements and
analyses of customer satisfaction and its antecedents are not new phenomena. A lot of studies have been carried
out. To explain variations in customer satisfaction several antecedents can be taken into consideration, for
example price, quality, service, expectations, etc. (e.g. Hausknecht 1990; Myers 1991; Oliver 1996; Szymanski
and Henard 2001). However, during the last decade customer satisfaction has received a lot more attention
than earlier. The reasons are many, but some can be linked to the increased attention concerning total quality
management and national quality awards (e.g. Garvin 1991; Heaphy and Gruska 1995; Hayes 1997). The
implementation of national customer satisfaction barometers may be another reason (e.g. Fornell 1992;
Johnson et al. 2001). In addition to analysis of customer satisfaction and its antecedents, these approaches are
also focusing on effects of customer satisfaction. When judging candidates for quality awards, customer
satisfaction results along with activities and programs concerning customers and markets count for a
considerable part of the amount of points that can be obtained (about 20%). Some of the criteria are related to
the consequences of Customer satisfaction. The main consequence is by many perceived to be customer.
Customer satisfaction can be defined as customer reaction to the state of fulfillment of their expectation and
needs, customer judgment towards service and products quality (Hallowell, 1996; Oliver, 1997 and Zeithamal
and Bitner, 2000). Satisfaction is important as the principle purpose of a business is to create satisfied
customers (Drucker, 1954). Satisfied customers lead to higher future profitability (Anderson et al., 1994).
Satisfied customers are more willing to pay price premiums, provide recommendations and maintain loyalty
towards the company (Reichheld, 1996). Higher customer satisfaction leads towards higher levels of customer
retention and loyalty (Fornell, 1992) and lowers costs related to defective goods and services (Anderson et al.,
1997) Customer satisfaction is viewed as a measure of the size, loyalty, and the quality of the customer base
of a firm (Fornell et al.2006; Morgan and Rego 2006). It is also viewed as a measure of a country’s economic
health (Fornell et al. 1996) and a metric to affirm the fundamental principle of capitalist free markets, in which
investors reward firms that meet customer needs better than competition (Fornell et al. 2006). Not surprisingly,
firms have invested considerable resources in measuring customer satisfaction, and it is viewed as the largest
item of the annual market intelligence budget (Wilson 2002). According to Kristensen et al. (1992), Zeithaml
et al. (1996), McColl-Kennedy & Schneider (2000), it is well established that satisfied customers are key to
long term business success (Gilbert & Veloutsou, 2006). In response to an increasingly competitive
marketplace, a growing number of companies are actively using customer satisfaction measures in developing,
monitoring and evaluating product and service offerings (Sui-Hua Yu, 2007). It is therefore no surprise that
many service companies spend as much as half of their research budget on the measurement of satisfaction
(Wilson, 2002). The benefits of customer satisfaction are well recognized in practice as well as in marketing
and management literature. High customer satisfaction is associated with higher customer loyalty and
enhanced reputation (Sui-Hua Yu, 2007). Customer satisfaction is the core of all marketing efforts and
essential for survival in the market. The principal purpose of a business is to create satisfied customers
(Drucker, 1954). Burns et al. (2003) describe negative disconfirmation as an occurring when performance is
less than expectations. Positive disconfirmation is evident when performance is greater than expectations. A
customer satisfaction result in the disconfirmation of prior expectation, i.e., if the service provider meets or
exceeds expectations, then the customer is more likely to be satisfied (Rust et al., 1995).
OBJECTIVE & HYPOTHESIS OF STUDY
To find out the factors on which customer pay attention on tele-communication services. The assumption of
study is that there is no particular factor on which customer pay attention on tele-communication services.
The population of the study will be all the persons those who are using tele-communication services
irrespective of their Demographic, Psychographic, Economical, Technological, Socio-Cultural determinants
and which cover all the tele-communication companies working in Gwalior . The area of research will be
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entire Gwalior city which covers 1000 respondents. The analysis of the gathered data and information will be
done with the use of data analysis software named PASW.
Scale: ALL VARIABLES
Case Processing Summary
N
%
Cases
Valid
1000
100.0
a
Excluded
0
.0
Total
1000
100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha
Based
on
Standardized
Cronbach's Alpha Items
N of Items
.631
.615
9
Case processing summery and reliability statistics showing that there is no case of excluding respondents,
100% respondents were taken in tabulated data. And the reliability of data is .631 with 9 no of items.
The KMO and Barlett’s Test also suggests that there were very low chances of obtainging the result if the
null hypothesis was true.. Hence we reject the null hythosis. And say that customers pay attention on services
from tele-communication companies. The significance value of 0.000 also tells that there is a correlation of
variables with each other.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.
Rotated Component Matrixa
Component
1
2
3
BRANDREPO
.809
.167
-.181
ADVERTISEMENT
.792
-.124
.229
VAS
.596
.209
.317
TERIFF
.076
.808
-.198
SUBCOST
.044
.719
.265
VOICECLARITY
.020
-.042
.727
PLANS
.154
.097
.686
SUGGESTION
.263
.266
.176
COVERAGE
.171
.339
.236
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
.655
1017.170
36
.000
4
-.183
.136
.218
.121
-.115
-.197
.194
.722
-.652
DISCUSSION ON FACTOR:
Attraction Offers (2.197): This came out as first factor Attraction Offers in tele communication industry. It
is having total of (2.197) and % variance of (25.638), in this factor total three items covered. The elements
constituting this factor including Value Added Services (.596), Advertisements (.792) and Corporate
Reputation (.809)
Monitory Offers (1.866): This came out as second factor Monitory Offers in tele communication industry. It
is having total of (1.866) and % variance of (14.016), in this factor total three items covered. The elements
constituting this factor including Tariff /call charges (.808), Initial Subscription Cost (.719) and
Connectivity/Coverage (.339).
Technical Offers (1.413): This came out as third factor Technical Offers in tele communication industry. It
is having total of (1.413) and % variance of (13.012), in this factor total two items covered. The elements
constituting this factor including Voice Clarity (.727) and Corporate Reputation (.809).
Feedback Offers (0.722): This came out as last factor Feedback Offers in tele communication industry. It is
having total of 0.722 and % variance of 11.244, in this factor total single items covered. The only response
constituting this factor is Response to Customer’s Response(.722)
Managerial Implication:
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For this research I have collected the data from 1000 respondents from various locations of Gwalior. I tried to
add variety of respondents for this research on demographic basis. Where male respondents was 47.7 % and
Female was 52.30%, Age group below 20 years was 11.11% , 20-30 years was 45.20%, 30-40 years was
23.20% and more then 40 years was 20.50%. Educational groups were divided in four parts i.e. less then 10th,
Intermediate, graduate, post graduate and percentage of respondents was 4%, 11.10%, 27.9%, & 57%
respectively, covered 48.30 % married and 51.70% unmarried respondents. This research also covered the
salary income part, and highest no of respondents 29.4 % was covering 10-15000 per month income group and
second largest group was covering 27.1% ranging 5-10000 per months. Similarly occupation part were also
covered where as we have divided in five parts i.e. businessman, professional, govt. employee, students and
others. And 39.1% were covered from other group.
After the collecting the data from various respondents, I have found that most of the customers were given
their views for Value Added Services, Advertisements, Corporate Reputation, Tariff and Voice clarity. This
really plays vital role to attract customers to opt any tele-communication’s product services. As a manager I
should suggest that tele-communication companies should concentrate on this factors, which may be helpful
for their sales growth.
CONCLUSION
This study is conducted among various respondants on demographic factors like gender, age. Marital status,
educations, occupation, and income. This study is clearly indicating the varity of customers takes care about
call charges, corporate reputation, advertisement, voice clarity, and value added services. And all factors are
very important to attract any customers.
REFERENCES
[1] Anders Gustafsson, Tor Wallin Andreassen, Line Lervik, and Jaesung Cha (2001), “The Evolution and
Future of National Customer Satisfaction Index Models,” Journal of Economic Psychology, 22 (April),
217–45.
[2] Boulding, William, Ajay Kalra, Richard Staelin, and Valarie A. Zeithaml (1993), “A Dynamic Process Model
of Service Quality: From Expectations to Behavioral Intentions,” Journal of Marketing Research, 30
(February), 7–27.
[3] Chadha S K, Kapoor Deepa, Effect of Switching Cost, Service Quality and Customer Satisfaction on Customer
Loyalty of Cellular Service Providers in Indian Market
[4] Chang Ee Ling, Ernest Cyril de Run, Satisfaction and Loyalty: Customer Perceptions of Malaysian
Telecommunication Service Providers
[5] Edvardsson, Bo and Tore Strandvik (2000), “Is a Critical Incident Critical for a Customer Relationship?”
Managing Service Quality, 10 (2), 82–91.
[6] Garbarino, Ellen and Mark S. Johnson (1999), “The Differential Roles of Satisfaction, Trust, and Commitment
in Customer Relationships,” Journal of Marketing, 63 (April), 70–87.
[7] Hansen, Håvard, Kåre Sandvik, and Fred Selnes (2003), “Direct and Indirect Effects of Commitment to a
Service Employee on the Intention to Stay,” Journal of Service Research, 5 (May), 356–68.
[8] International Telecommunication Union (1994) Telephone transmission quality: measurements related to
speech loudness. Supplement 11, Series P (ITU).
[9] Johnson, Michael D. and Claes Fornell (1991),“A Framework for Comparing Customer Satisfaction Across
Individuals and Product Categories,” Journal of Economic Psychology, 12 (2), 267–86. Journal of Marketing,
Vol. 69 (October 2005), 210–218
[10] Keaveney, Susan M. (1995), “Customer Switching Behavior in Service Industries: An Exploratory Study,”
Journal of Marketing, 59 (April), 71–82.
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COVERT ADVERTISING AND ITS IMPACT ON CONSUMER
BEHAVIOUR
ABSTRACT
Shruti Saraswat1
Vikram Singh Rana2
Dr. Gulnar Sharma3
The film industry has been very well famous and popular as a powerful promotional medium and channel
for products. “Chennai Express”, “BOSS”, “Dabangg”, “Iron Man” and “Transporter Series” are some
excellent examples of movies with covert advertising. Brands such as Nokia, Black Berry, Suzuki, Aston
Martin and Audi have placed themselves in these movies. This report is about how effective and
successful covert advertising actually is. The study aims to discuss the effect of covert advertising on the
consumer buying decision. Also it examines its nature and scope and the issues related to it. It has many
advantages over the other above the line advertising techniques but also has a few disadvantages.
After applying the chi-square test (χ2 test) on the collected research data, the result shows that the buying
behaviour of the customers is not affected by the placement of brands in movies.
INTRODUCTION
Advertising is the paid, impersonal, one-way marketing of persuasive information from an identified sponsor
disseminated through channels of mass communication to promote the adoption of goods, services or ideas.
There is not a single generally accepted definition of advertising.
Advertising is a form of communication for marketing and used to encourage, persuade, or manipulate an
audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.
Over the years Advertising has emerged as a key component of integrated marketing communication.
Moreover, it has adjusted with the changing economic environment and consumer behaviour. The clutter in
the product market and media has made the task challenging for marketers to reach their consumers. Thus both
the Media and Advertiser’s search for innovative advertising techniques led to ‘Covert Advertising’.
Covert advertising is a medium in which a product or a particular brand is incorporated in some entertainment
and media channels like Movies and Television. It is when a product or brand is embedded in entertainment
and media. For example, in a film, the main character can use an item or other of a definite brand.
In film advertising or covert advertising (also known as guerrilla advertising) is a medium through which
branded products are placed in movies, which is visible to consumers without any distraction.
Leveraging on the entertainment value, emotional quotient of the film and its psychological impact on viewers
has led the advertisers to utilize this medium. The phenomenon is gaining momentum due to its clutter free
feature and advantages of celebrity endorsement for the product or brand in a movie.
Movies have been used as one of the most popular platform for product placement. Latest super hit movie
“Chennai Express” promoted Nokia Lumia series. In the movie, the lead actor Shahrukh Khan has told almost
all the features including Handset’s price in one scene. Another very big example is Bollywood movie “Mere
Dad Ki Maruti”. They have got 50% of the film budget from Maruti Suzuki India. Every second dialogue of
film is directly or indirectly talking about Maruti Ertiga (Maruti’s latest LUV car). But recall the Rishi Kapoor
starrer “Karz” by the filmmaker, which had an entire song sequence with the Emami banner at the backdrop.
Similarly time and again we have witnessed so many brands like ICICI, Yamaha, Pepsi, and Lays in movies
“Aakhein”, “Baghban”, “Dhoom”, “Khushi” and “Krissh” respectively. Apart from movies TV serials and
Music album videos are another platform for covert advertising. In Ayushman Khurana’s new music video
1
Research scholor
Research scholor
3
Director JLU, School of Management, Bhopal
2
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“heeriye” he is using XOLO tablet computer for writing his song lyrics. Product placement, as the numbers
suggests is bringing revolutionary change in entertainment economics.
Covert advertising is prevalent in Hollywood as well as seen in the movie series “Transporter”, where Jason
Statham’s character Frank Martin owns cars like Audi, Mercedes and BMW with their logo clearly seen.
A few firms get product placement at no cost by supplying their product to the movie company (Nike does not
pay to be in movies but often supplies shoes, jackets, bags, etc.). Scripts are tailor made for the desired brand
so that when they are incorporated they look natural. It is done through special mention in the programs,
placement of logo or may be a shot of that particular brand.
HISTORY
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One of the earliest movies to use covert advertising was Fritz Lang’s film M (released in 1931) which featured
a prominent banner display on a staircase in one scene for Wrigley’s PK Chewing Gum, which was right in
the viewer’s eye for approximately 20–30 seconds.
In India, this type of advertising in movies existed since 1970s. One of the oldest and the most famous product
placement in Hindi movie was the yellow coloured “Rajdoot” bike in the movie “Bobby”. However the first
recognized covert advertising in India was of “Pepsi” in the film “Taal” in the year 1999.
OBJECTIVES


To study the impact of covert advertising on brand believability, brand credibility and buying decision
of customers.
To study the pros and cons of covert advertising.
LITERATURE REVIEW
Topic: An Analytical Study On Covert Advertising: Product Placement In Indian Cinema
By: Prachi Singh
Website: http://www.irdindia.in/Journal_IJRDMR/PDF/Vol2_Iss1/13.pdf
Topic: Ppt on Advertising
By: Amit Shukla
Website: http://www.scribd.com/doc/25167223/5/Covert-advertising
Topic: Covert Advertising
By: Himanshu Rajput
Website: http://www.scribd.com/doc/22241034/covert-advertising
Topic: Covert Advertising
By: Himanshu Rajput
Website: http://www.scribd.com/doc/22367399/Project-Title-Covert-Advertising
Research Design: The research is a descriptive research or statistical research which includes surveys and fact
finding enquiries of different kinds. It provides data about the population or universe being studied. But it can
only describe the "who, what, when, where and how" of a situation, not what caused it. Therefore, descriptive
research is used when the objective is to provide a systematic description that is as factual and accurate as
possible.
One of its major limitations is that it cannot help determine what causes a specific behaviour or motivation. In
other words, it cannot establish a causal research relationship between variables.
Variables used: In our study two variables are used viz. independent variable and dependent variable.
Independent variable is the covert advertising and dependent variable is the brand believability, brand
credibility and buying decision of customers which is measured by the ‘effect of covert advertising on
consumers’.
Sample Design:
 Universe- youngsters and adults.
 Sample- youngsters (18-25 yrs.) and adults (25+) in Bhopal, sample size is 200.
Tools for Data Collection: The research is based on the primary data which is collected through survey
(questionnaire).
Need and Scope of the Study: So far many studies and researches have been conducted on the topic covert
advertising but no study has been conducted in Bhopal city with the youngsters (18-25 yrs.) and adults (25+).
Limitations of the Study: The study has been conducted only on youngsters and adults of Bhopal city so it is
geographically limited study.
DATA ANALYSIS
Tools for Data Analysis: chi-square test (χ2 test).
CALCULATIONS AND TABLES:
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Alternate Hypothesis (HA): There is a positive effect of covert advertising on the buying behaviour of
consumer.
Null Hypothesis (HN): There is no effect of covert advertising on the buying behaviour of consumer.
Advertising
Positive Effect
Covert
O=43
(E=29)
O=51
(E=65)
94
No Effect
Total
Non-Covert
O=18
(E=32)
O=88
(E=74)
106
Total
61
139
200
Where, O is observed frequency and E is expected frequency.
χ2= Σ ((O-E)2)/E)
O
43
51
18
88
Total
E
29
65
32
74
(O-E)
14
-14
-14
14
(O-E)2
196
196
196
196
((O-E)2)/E
6.75
3.01
6.12
2.64
18.52
χ2=18.52
Degree of freedom= (no. of rows-1) (no. of columns-1) = 1
At 5% significance level and with degree of freedom 1, the chi-square table shows the table value 3.84 and the
calculated value is 18.52.
Interpretation:
Since the calculated value is greater than the table value we reject the hypothesis saying there is a positive
effect of covert advertising on the buying behaviour of consumer.
This means that there is no effect of covert advertising on the buying behaviour of consumer.
ADVANTAGES









Products and services are perceived as having higher value.
There is a celebrity halo effect.
The best way to get brands noticed at a cheaper price.
Films transcend geography, class & culture barriers.
Cross promotion.
The viewer can’t ignore the product without missing the Plot.
It has a captive audience.
If the programme or film is a success the advertising gets a wider audience.
Has an immediate effect which can be short term sponsorship of television programmes.
DISADVANTAGES





Failure of the movie at box office
Just a min advertising leading to no lasting impression
Not informative
Wrong interpretation
Possibility of negative character association
CONCLUSION
Advertising occupies a major place in Integrated Marketing Communication strategy of corporate. It has been
continuously evolving with the changing media environment. They are constantly in search of innovative
technique which can grab the attention of customers and audience and in recent years have come up with the
concept ‘Covert Advertising’. A conclusion drawn from the research is that products placed prominently in
films were better recognized but do not have any kind of impact on their buying decision. Another aspect
closely considered in this research was that along with the advantages, it also has some disadvantages that
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come from the negative type of advertising like the fighting scene in the movie “Chak De India” is referred to
as the McDonald’s fight scene just because it takes place in one of the outlets.
REFERENCES
[1] Anon
(2013)
product
placement
in
Indian
cinema
[Internet].
Available
from:
<http://www.irdindia.in/Journal_IJRDMR/PDF/Vol2_Iss1/13.pdf> [Accessed 10 October 2013].
[2] Covert advertising for Ppt on Advertising by Amit (2013) Covert advertising for Ppt on Advertising by Amit
[Internet]. Available from: <http://www.scribd.com/doc/25167223/5/Covert-advertising> [Accessed 08 October
2013].
[3] Professor Friedman's Courses (2013) Professor Friedman's Courses [Internet]. Available from:
<http://academic.brooklyn.cuny.edu/economic/friedman/coursepa.htm> [Accessed 11 October 2013].
[4] Indian Advertising, Media, Marketing, Digital, Advertising Agencies – afaqs (2013) Indian Advertising, Media,
Marketing, Digital, Advertising Agencies - afaqs [Internet]. Available from: <http://www.afaqs.com/>
[Accessed 11 October 2013].
[5] Business News, Economy, Finance News, SENSEX, NIFTY, NSE, BSE, Stock Market India - The Financial
Express (2013) Business News, Economy, Finance News, SENSEX, NIFTY, NSE, BSE, Stock Market India - The
Financial Express [Internet]. Available from: <http://www.financialexpress.com/> [Accessed 13 October 2013].
[6] Project Title - Covert Advertising (2013) Project Title - Covert Advertising [Internet]. Available from:
<http://www.scribd.com/doc/22367399/Project-Title-Covert-Advertising> [Accessed 06 October 2013].
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FLOURISHING, GRIT AND RESILIENCE AMONG COLLEGE
STUDENTS
ABSTRACT
Ms. Vidushi Saharan 1
Every individual has different needs and demands from life. To fulfil these demands, they set goals for
themselves which vary from person to person. As the person starts achieving those goals one-by one,
he/she starts flourishing in life. Flourishing is one’s own perception of his/her well-being. More he will
be able to flourish; more will be the effect on his/her resilience. This study examined the relation among
flourishing, grit and resilience. It is conducted on a sample of 100 college going female students, in the
age range of 18 to 22 years, residing in Banasthali Vidyapith. Flourishing test (Diener et al, 2010), Girt
test (Duckworth et al, 2007) and (Smith et al, 2008) resilience test were administered. Result showed that
flourishing is significantly positively related with grit, resilience is insignificantly positively related with
flourishing, and grit is insignificantly positively related with resilience.
INTRODUCTION
In today’s world, for a student getting an education is not an easy task. Not only must the student strive to
achieve in the classroom, student must have other obstacles as well. Many times, peer relationship issues
including peer pressure and the maintenance of friendships can be a block to academic achievement. Other
difficulties that students face are behavior and disciplinary issues. On top of all this, students also sometimes
have to deal with negative feelings about college and uncaring hostel. The students’ reaction to these elements
affects their class adjustment. It is believed that a student’s character plays an important role in her response
to the stressors of the education system. They should know how to use these three variables - resilience, grit
and flourishing. Once the individual is able to set his/her long term goals to be achieved in life, they tend to
acquire the quality to fight back all the hurdles in their way and this quality of resilience helps the flourish in
their life.
Coping with painful events and unpleasant emotions is a struggle for every human being. The ability to cope
effectively with these events and emotions can be termed resilience (Blum, 1998). According to Smith &
Carlson (1997), the adolescent population may be especially susceptible to stressful events, and perceive some
events as more stressful than an adult might Bonanno,2004 described resilience as a potentially proactive way
of preventing such difficulties and providing adolescents with a way to successfully navigate their world. The
goal of the proposed study is to develop and evaluate a model that can measure resilience in adolescents. Many
scales and models are developed to measure some type of mental health disorder or vulnerability in human
beings. The study of resilience is based on strengths a person has and how difficulties in life can be overcome.
It is this emphasis on strengths and positive assets that will be the focus of this model, rather than weakness
vulnerability.
It is predicted that individuals interested in long-term success and achievement will avoid engaging in selfhandicapping strategies. Two individual differences associated with a future-orientation and focus on longterm success and achievement will be examined by the current investigation. Specifically, we examine how
grit (Duckworth, Peterson, Matthews, & Kelley, 2007) and Trait Self-Control (TSC; Tangney, Baumeister, &
Boone, 2004) influence self-handicapping behaviours. Duckworth et. al (2007) Participants with any type of
college degree had a higher grit score than those without, and among college degree holders, individuals with
an Associate’s degree had the greatest amount of grit. In addition, certain personality traits were linked to grit.
There were significant positive correlations between grit and the Big Five traits of conscientiousness,
agreeableness, extraversion, and openness to experience and a negative correlation between grit and
neuroticism.
Flourishing refers to the experience of life going well. It is a combination of feeling good and functioning
effectively. Flourishing is synonymous with a high level of mental well-being, and it epitomizes mental health
1
MA Psychology, Department of psychology, Banasthali Vidyapith
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(Huppert 2009a, b; Keyes 2002; Ryff and Singer 1998). This hypothesis is consistent with research indicating
that the prevalence of many DSM-IV disorders is greatest in young and middle adulthood and substantially
lower by age 60. When mental health is characterized in terms of more than the absence of pathology, however,
research on age differences is mixed. For instance, research on age differences in Ryff's (1989) scales of
psychological well-being (SPWB) suggests that older adults report greater environmental mastery but lower
personal growth and purpose in life than younger adults ( Rosenthal, 2000; Ryff, Keyes , 2003).
OBJECTIVE
To see the difference among resilience, flourishing and grit.
HYPOTHESES


There would be a significant difference between high grit group and low grit group in terms of
resilience.
There would be a significant difference between high grit group and low grit group in term of
flourishing.
METHODOLOGY
Sample- A random sample of 100 college going female students, in the age range of 18 to 22 years, residing
in Banasthali Vidyapith, was taken. Random selection of participants was done by using Tippett’s Table.
Measures
 Resilience questionnaire (2008). This questionnaire was developed by Smith, Dalen, Wiggins, Tooley,
Chritopher, and Bernard. Participants responded to 6 items on the likert scale ranging from 1 strongly
disagree to 5 strongly agree.
 Flourishing questionnaire (2010). This questionnaire was developed by Diener, Wirtz, Kim-pireto,
Choi, Oishi and Biswas-diener .Participants responded to 8 items on the likert scale ranging from7
strongly agree.
 Grit questionnaire (2007). This questionnaire was developed by Duckworth, Peterson, Matthewes,
and Kelly .Participants responded to 17 items on the likert scale ranging from 5 very much like me.
Procedure
The researcher conducted the research by having the permission to collect data from the above mentioned
institution. After the grant of permission the questionnaires were given to the subjects. Participants were given
the instructions before handing over the questionnaires. They were informed to answer all the statements.
Omission was not allowed.
Interpretation
GRIT
High
Low
Table1 showing t test difference between high grit and low grit group for resilience
df
Mean
t
Sig.
98
18.4490
0.366
0.715
18.2157
Perusal of table 1 exhibits the value of t which is 0.36 significantly at 0.71 levels. This means that the high grit
group differs significantly with low grit group in terms of resilience. In other words, high grit group feels more
resilience in comparison low grit group. As the average scores of sample with high grit group is 18.44 and for
the low grit group is 18.21. Since the mean of high grit group is more than the mean of low grit group it can
be concluded that high grit group will have more resilience than low grit group.
GRIT
High
Low
Table 2 showing t- test difference between high grit and low grit groups for Flourishing.
df
Mean
t
Sig.
98
48.9184
2.564
0.012
44.7255
Perusal of table 2 exhibits the value of t which is 2.56 significantly at 0.01 levels. This means that the high grit
group differs significantly with low grit group in terms of flourishing. In other words, high grit group feels
more flourishing in comparison low grit group. As the average scores of sample with high grit group is 48.91
and for the grit group is 44.72. As the mean of high grit group is more than the mean of low grit group hence
it can be concluded that high grit group will flourish than low grit group.
Table 3 showing Correlational matrix
Flourishing
Grit
Resilience
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Flourishing
Grit
Resilience
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
0.311**
0.002
100
1
1
100
0.311**
0.002
100
0.075
0.460
100
100
0.139
0.169
100
0.075
0.460
100
0.139
0.169
100
1
100
Table 3 showing the correlations matrix of all the variables under study. Flourishing is significantly positively
related with grit [r=0.311, p<.01]
Table 3 showing the co relations matrix of all the variables under study. Grit is insignificantly positively related
with resilience [r=0.139, p>.05]
Table 3 showing the co relations matrix of all the variables under study. Resilience is insignificantly positively
related with flourishing [r=0.075, p>.05]
DISCUSSION
Finding 1
There is significant difference between high and low grit groups in term of flourishing.
Industriousness patience, perseverance, need for achievement, ambition are essential ingredients of grit.
Perseverance of long term goals could be achieved when an individual possess the essential components of
grit. Without them, it is difficult to focus on a task for a long period of time. Thus, people who have grit are,
generally, able to achieve their desire goals, despite many setbacks. And those who are successful in
accomplishing their goals flourish in their lives. The psychological well being of such people is generally fine,
usually remain in a happy state, have self confidence and their self esteem is also high.
Finding 2
There is insignificant difference between high and low grit groups in term of resilience.
Earlier studies have shown connection between grit and resilience. The present finding of the study deviates
from the result of earlier research work finding state that student having high grit did not differ with student
having low grit. This means that in both the group resilience is not a varying factor. Both the group are almost
at par on resilience. The probable reason could be that resilience is a part of personality and personality varies
from individual to individual. Thus, it can be concluded that the factor resilience could act as a moderator in
accomplishing long-term goals but it will not a directly affect the grit. That is, it is not a mediating variable
and will vary according... and personal factors of an individual.
LIMITATIONS



This study is conducted on females only.
The sample was taken from Banasthali Vidyapith only.
It is conducted on a small group.
IMPLICATION
In today’s scenario, everybody is facing setbacks and generally have the tendency to give up after a short
period of struggle. This takes a heavy toll on the psychological well-being of such people. Thus, the finding
of this study would be of great help to the professionals, as it will develop insight into the understanding of
relations among the variables like resilience, grit and flourishing. Further, it would be easier for professionals
to deal with cases of failure in the light of grit, resilience and flourishing, apart from others factors .It would
help the professionals, when they design intervention programs for skills development.
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REFERENCES
[1] Blum, R. W. (1998). Improving the health of youth: A community health perspective. Journal of Adolescent
Health, 23, 254-258.
[2] Bonanno GA. Loss, trauma, and human resilience: Have we underestimated the human capacity to thrive after
extremely aversive events? American Psychologist. 2004;59:20–28.
[3] Duckworth, A. L., Peterson, C., Matthews, M. D., & Kelly, D. R. (2007). Grit: Perseverance and passion for
long-term goals. Journal of Personality and Social Psychology, 92(6), 1087-1101
[4] Huppert, H., Marks, N., Clark, A.E., Siegrist, J., Stutzer, A., Vittersø, J., and Wahrdorf, M.
[5] Ryff CD, Singer B, Love GD, Essex MJ. Resilience in adulthood and later life: Defining features and dynamic
processes. In: Lomranz J, editor. Handbook of aging and mental health: An integrative approach. New York:
Plenum Press; 1998. pp. 69–96. Ryff
[6] Ryff CD, Singer B. Flourishing under fire: Resilience as a prototype of challenged thriving. In: Haidt J, Keyes
CLM, editors. Flourishing: Positive psychology and the life well lived. Washington, DC: American
Psychological Association; 2003.
[7] Smith, C., & Carlson, B. E. (1997). Stress, coping, and resilience in children and youth. Social Service Review,
71(2), 231-256.
[8] Tangney, J. P., Baumeister, R. F., & Boone, A. L. (2004). High self-controlpredicts good adjustment, less
pathology, better grades, and interpersonalsuccess. Journal of Personality, 72(2), 271–322.
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THE RELATIONSHIP AMONG ORGANISATIONAL CLIMATE, JOB
SATISFACTION AND HAPPINESS OF THE EMPLOYEES OF
EDUCATIONAL INSTITUTIONS
ABSTRACT
Ms. Mahima Agarwal1
The organisations in the 21stcentury are faced with more challenges than ever before. These challenges
are not unique to any specific organisation or industry, but affect all organisations, regardless of their
structure and size. Organisational climate or environment of a workplace is one of the factors that
explicitly or implicitly influence the level of performance of its employees, their level of job satisfaction
and thus their happiness level. To understand the relation among organisational climate, job satisfaction
and happiness, this study is being conducted. Organisational climate is a set of measurable properties of
the work environment that is perceived directly or indirectly by the people who influence their motivation
and behaviour. Job satisfaction can be defined as the attitude or feeling that one has about one’s job that
is either positive or negative. Happiness is a state of well-being characterized by emotions ranging from
contentment to intense joy. This study was conducted on a sample of 90 employees (45 males, 45 female)
of different educational institutions. The tools- organisational climate inventory (Chattopadhyay &
Agarwal, 1976), job satisfaction scale (Singh & Sharma, 1984) and the happiness measure scale
(Fordyce,1988) were used for the study. The data was analysed using correlational design and t-test. It
was found in the study that there is positive correlation between organisational climate and job
satisfaction, and organisational climate and happiness. It is also found that job satisfaction and happiness
are negatively correlated to each other. Organisational climate of males and females is found to be
significantly different and there is insignificant difference in job satisfaction and happiness of males and
females.
INTRODUCTION
These days’ people are more inclined towards their profession. They prefer working in a comfortable
environment and want to attain maximum satisfaction with the job they pursue. And this might affect their
level of happiness.
Organisations that are able to create environments that employees perceive to be benign and in which they are
able to achieve their full potential are regarded as a key source of competitive advantage. Organisational
climate can therefore be considered a key variable in successful organisations.
One of the earliest and most widely accepted definitions of organisational climate is that organisational climate
is a set of characteristics that describes an organisation, distinguishes it from other organisations, is relatively
enduring over time and can influence the behaviour of people in it. (James & Jones, 1974; Johannesson, 1973;
Moran & Volkwein, 1992; Woodman & King, 1978).
According to Gray (2007), a supportive work environment is related to employees’ performance. He argues
that a positive environment will result in motivated employees who enjoy their work. It therefore comes as no
surprise that work climate is an excellent predictor of organisational and employee performance.
According to Gruneberg (1979), the popularity of job satisfaction stems from the fact that it affects so many
people as most of their time is spent at work. Job satisfaction can be defined as the attitude or feeling that one
has about one’s job that is either positive or negative. Hence someone who has a high level of job satisfaction
will have a positive feeling about his/her job, while someone who is dissatisfied will have negative feelings.
Tenure refers to the number of years an employee has spent working (Oshagbemi, 2003). According to
Bedeian, Ferris and Kacmar (1992) tenure and job satisfaction is positively related. Organisational variables
are believed to have a moderating influence on the satisfaction-performance relationship, the most important
1
Student(M.A.), Department of Psychology, Banasthali Vidyapith
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being rewards. If individuals receive rewards for good performance and these rewards are considered equitable
for the work done, the individual is likely to be satisfied, which is likely to result in improved performance
(Luthans, 2005).
It should be noted, however, that when the job satisfaction-job performance relationship is considered from an
organisational perspective, it appears that those organisations with more satisfied employees are generally
more effective than those with less satisfied employees (Luthans, 2005 & Robbins, S. P., Odendaal, A. &
Roodt, G., 2003). According to these authors, the reason for this is that studies have focused on the individual
and not the organisation and as a result, complex work processes and interactions have not been taken into
account. Locke (1976) found increased job satisfaction to be associated with lower levels of turnover and
higher levels of morale and productivity. Kopelman, R. E., Brief, A. P., & Guzzo, R. A. (1990, p. 303) in their
considerable research indicated that organizational climate is associated with job satisfaction. Litwin and
Stringer (1968) concluded that climates which result in “high job satisfaction create (a) the arousal of some
positive motivational tendency, (b) attitudes appropriate to (and opportunities for) motivated behavior, and (c)
appropriate reward for such behavior” (p.138). Spector (1997) states that individuals who dislike their jobs
could experience negative health effects that are either psychological or physical. On the other hand, Luthans
(2002) mentions that employees with high levels of job satisfaction tend to experience better mental and
physical health.
Happiness is a key component of wellbeing but there is little consensus on its definition or cause. Happiness
is defined by Argyle (1997) as a positive inner experience. Happiness is very much a subjective construct.
There are two broad concepts of happiness; hedonic and eudaimonic. The hedonic concept focuses on
subjective well-being and is defined as more positive affect, less negative affect, and greater life satisfaction
(Diener& Lucas, 1999); in contrast the eudaimonic concept focuses on psychological well-being and is defined
as meaningfulness (McGregor & Little, 1998).
Blanchflower and Oswald (2004) found that happiness was “U-shaped in age,” with well-being reaching “a
minimum, other things held constant, around the age of 40”. Helliwell and Putnam (2004) claim that there is
“no strong and straightforward” relationship between gender and subjective well-being. They did find that men
reported slightly higher levels of life satisfaction than women, and that “a gender effect sometimes arises and
sometimes does not, depending on the specification of the model” (p. 1440). Thus, they hint that there may be
a complex relationship between gender and subjective well-being and gender, possibly moderated by other
variables.
OBJECTIVES
[1] To examine the correlation among organisational climate, job satisfaction and happiness.
[2] To find out difference in organisational climate, job satisfaction and happiness in males and females.
HYPOTHESES
[1] Organisational climate would be positively correlated to job satisfaction and happiness.
[2] There would be a positive correlation between job satisfaction and happiness.
[3] Organisational climate of males would be significantly different from the organisational climate of
females.
[4] There would be significant difference in job satisfaction of male and female.
[5] Happiness of male and happiness of female would have significant difference between each other.
METHODOLOGY
Sample: The research was conducted on a sample of 90 (45 Males, 45 Females), age ranging from 25 to 60
years, teaching and non-teaching staff members from various educational institutions- Banasthali University
(Rajasthan), Poddar Senior Secondary School (Jaipur), Rukmini Devi Public School (Delhi), Delhi Kannada
School (Delhi) and B.I.T. (Meerut).
Tools employed: The materials required for this research included three different assessments
Organisational Climate Inventory (OCI-B): developed by Chattopadhyay and Agarwal (1976). It is a 70 item
inventory. The validity of the inventory is .001 and the reliability is .89.
Job Satisfaction Scale: developed by Singh and Sharma (1984). It is a 30 statement scale. The reliability is
0.97 and validity is 0.81.
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The Happiness Measures: developed by Fordyce (1988) with the test retest reliability of 0.85 and validity as
0.70.
Procedure
After the grant of permission to collect data from the above mentioned institutions the questionnaires were
given to the subjects. Participants were given the instructions before handing over the questionnaires. Data
was analysed in terms of t-ratio and coefficients of correlation in accordance with the objectives.
RESULTS
Table1. Correlation between variables
Variables
Pearson correlation
.56
Organisational climate & job satisfaction
.00
Organisational climate & happiness
-.02
Job satisfaction & happiness
Significance
.00
.99
.85
Table1 gives a glance to the correlation among three variables- organisational climate, job satisfaction and
happiness. There is positive and significant correlation between organisational climate and job satisfaction
(t(88)= 0.56, p<0.01), and the correlation between organisational climate and happiness is found positive but
insignificant (t(88)= 0, p>0.05). Table also reveals that job satisfaction and happiness have negative and
insignificant correlation with each other (t(88)= -0.02, p> 0.05).
Variables
Organisational climate
Job satisfaction
Happiness
Table 2. t-value of males and females
Mean
t
Male= 240.22
3.33
Female= 215.44
Male= 74.96
1.95
Female= 70.04
Male= 36.53
0.46
Female= 39.78
df
Significance
88
.00
88
.05
88
.65
Table 2 indicates that there is highly significant difference between the organisational climate of male and
organisational climate of female. (t(88)= 3.33, p<.01). According to the table, the average scores of males for
organisational climate are 240.22 and that of females for organisational climate are 215.44. Hence, males have
better organisational climate than females. It is also shown in the table that there is insignificant difference
between the two- job satisfaction of male and job satisfaction of female. (t(88)= 1.95, p>.05). According to the
table, the average scores of males for job satisfaction are 74.96 and that of females for job satisfaction are
70.04. Hence males are more satisfied with their job than females. Table also shows insignificant difference
between the two- happiness of male and happiness of female. (t(88)= -.46, p>.05) The average scores of males
for happiness are 36.53 and females for happiness are 39.78. It is evident that females are happier than males.
DISCUSSION
The present study is aimed at exploring the relation among organisational climate, job satisfaction and
happiness of the employees of educational institutions.
On the basis of literature review it was hypothesized that organisational climate would be positively correlated
to job satisfaction and happiness (as shown in Table 1) and results partially support the hypothesis. There is
significant correlation between organisational climate and job satisfaction. Patterson, Warr and West (2004)
conducted studies on the mediating effect of job satisfaction on the relationship between global organisational
climate and productivity at 39 manufacturing companies containing 4503 employees in total. They found a
positive significant correlation between 5 of the 17 climate dimensions and company productivity.
Correlation is insignificant for organisational climate and happiness. Because happiness is a feeling, it also
depends on various factors that could be intrinsic or extrinsic. Happiness is based on individual differences.
Happiness varies from person to person and is based on individual differences. Different people attribute
different reasons to their happiness, for example, spending quality time with family, having an understanding
relationship with spouse, having a luxurious life, being with friends, etc. these might collectively give
happiness to people. Thus, organisational climate can be one moderating factor for happiness but not solely
responsible for it.
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There is insignificant negative correlation between job satisfaction and happiness (as shown in Table 1) thus
rejecting the hypothesis 2 that there would be a positive correlation between job satisfaction and happiness.
The reason is very much related to human’s basic tendency- the more we get, the more we crave for. All
humans have inclination towards materialistic life and this leads to dissatisfaction for whatever we have. Thus,
whatever we get we try to acquire more which when not done so affects our happiness.
The third hypothesis is accepted with the results showing significant difference in organisational climate of
males and females (Table 2). The probable reason for this result could be that there are gender biases
experienced by females. Being a male dominant society more preferences are given to males than females and
this affects the organisational climate provided to both. Males are more comfortable while due to gender
stereotypical behaviour of colleagues females do not find their organisational climate apt for them. Also
because of this they are not able to form good interpersonal relationships with their colleagues, which is also
one of the factors contributing to the organisational climate.
Results have found that there is insignificant difference in job satisfaction and happiness of males and females
(Table 2), rejecting the last hypothesis. Previous studies are also found to be in accordance with this finding.
Robbins et al. (2003) argue that no evidence exists suggesting that gender impacts on an employee’s job
satisfaction. The authors are of the opinion that gender differences can have an effect on the relationship
between job dimensions and job satisfaction, but that it does not have a direct impact on job satisfaction.
Happiness varies from person to person. Helliwell and Putnam (2004) claim that there is “no strong and
straightforward” relationship between gender and subjective well-being. Thus, they hint that there may be a
complex relationship between gender and subjective well-being and gender, possibly moderated by other
variables, but do not elaborate.
LIMITATIONS
[1] Research was conducted on a relatively small sample size (N=90).
[2] The research was limited to educational institutions only.
CONCLUSION
From this study it can be concluded that organisational climate is one of the most important factors responsible
for an individual’s level of satisfaction towards his/her job, but only a moderating factor in determining his/her
happiness.
REFERENCES
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[2] Bedeian, A., Ferris, G., & Kacmar, K. (1992). Age, tenure, and job satisfaction: A tale of two perspective.
Journal of Vocational behavior, 40, 33-48.
[3] Blanchflower D. G. & A. J. Oswald. 2004. Well-being over time in Britain and
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Institute.
[7] Diener, E., & Lucas, R. E. (1999). Personality and subjective well-being: The foundations of hedonic
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psychology, (pp. 213-229). New York, NY, US: Russell Sage Foundation.
[8] Fordyce, M. W. (1988). A review of research on the happiness measures: A sixty second index of happiness and
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Amsterdam. Elsevier
[10] Gruneberg, M.M. (1979). Understanding job satisfaction. London: MacMillan.
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Royal Society of London, 359, 1435-1446.
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Schneider (Eds.), Organisational climate and culture. (pp.282-318). San Francisco: Jossey-Bass.
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[15] Litwin, G.H., & Stringer, R.A. Jr. (1968). Motivation and Organisational Climate. Boston, MA: Harvard
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[16] Locke, E. (1976). The nature and causes of job satisfaction. In M. Dunnett (Ed.).Handbook of industrial and
organizational psychology. (pp. 1297-1349). Chicago: Rand McNally.
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[18] Luthans, F. (2005). Organisational Behavior(10 ed.). Boston, MA: McGraw-Hill Irwin.
[19] McGregor, I., & Little, B. R. (1998). Personal projects, happiness, and meaning: on doing well and being
yourself. Journal of Personality and Social Psychology, 74, 494-512.
[20] Moran, E.T., &Volkwein, J.F. (1992). The cultural approach to the formation of organisational climate. Human
Relations, 45(1), 19-47.
[21] Organ, D. W. (1988). Organisational citizenship behavior: The good soldier syndrome. Lexington, MA:
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[22] Oshagbemi, T. (2003). Is length of service related to the level of job satisfaction? International Journal of Social
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Review, 3(4), 816-826.
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HUMAN RESOURCE MANAGEMENT AND STUDY OF
MANAGEMENT OF ORGANIZATIONAL BEHAVIOR IN THE
MULTI NATIONAL COMPANIES
ABSTRACT
Shekhar Kapoor
Human Resource is one of the major factors behind the success of any organization. Since organizations
operate in dynamic environment, it requires its employees to be also of dynamic nature, because
ultimately, it is the performance of employees which determine the performance of the organization as a
whole. But it is important to note that an employee’s performance is a sub-set of his attitude towards
work, behavior, personality traits and emotions. Hence, it is really significant for organization to focus
on employees’ organizational behavior and its management. This has been a major area of concern for
almost all the managers around the world, as well as in case of multinational organizations, where things
are more complex as people from different nationalities, culture and regions join hands for its success.
Researchers are of the view that human behavior responds very quickly to any change in environment,
and that the toxic behavior negatively affects the performance of individuals as well as co-workers.
Hence, there is an extreme need of understanding the behavior of employees at work and managing it
accordingly. This paper studies existing researches conducted on the topic and recommends a brief
practical solution for the multinational organizations to implement. It also reveals that a wide ground of
research is required to explore the multi-dimensions of human behavior displayed at work so as to
overcome the challenges of performing best in the current scenario.
KEYWORDS: Organization Behavior, Management, Multinational Organizations, Performance,
Research
INTRODUCTION
Human behaviors are dramatically different (Robins, 1999). They display different response in different
situations (Cascio, 2003). No two people are perfectly alike, and each one differ from the other, both physically
and psychologically (Coulter, 1999). Even if one particular physical category is considered, there will be
vast variation in t h e psychological characteristics of the participants (Porathe, 2009). The differences in
behavior demand special attention of managers so that each kind of behavior is managed properly and the
organization en-cashes the benefits from it.
Human behavior has been classified in different dimensions by psychologists (Thompson, 2006). One
dimension of classification is genetic characteristics of human behavior (Hartt, 2006). While they argue that
due to their genetic uniqueness, behaviors possess paternal qualities, another group classifies behavior as
depending on different situations, i.e. the behavior of a person in happy moments is different from that on
sad occasions, etc. Several researches have been conducted in this context and the facts on behavioral analysis
reveal that in different situations, people have different reactions and behavior (Bartol, 2003). There are several
reasons behind these differences in behavior which may be either due to the intrinsic characteristics of
behavior, or perception of extrinsic factors, or tie-up with the situation, or other facets that directly or indirectly
affect the behavior (Barton, 2003). There are several studies conducted which discuss the human behavior in
context of their decision making skills (Hollenbeck, 2001).
Due to the nature of the subject chosen, this study tends to explore the behavior of employees in
organizational environments. It analyzes the concepts of management theorists and approaches of
psychologists in the context of employees’ behavior and its effect on performance in multinational
organizations. Since study of behavior of people belongs to the field of psychology and study of performance
of employees is covered under human resource management (Bartol, 2006), this study tends to explore
different theories of human behavior at work and management of such different kinds of behavior in different
situations. It is important to understand different behavioral aspects because it not only affects the
performance of an individual, but also of others (Porath, 2009) he is in contact with directly or indirectly.
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Although a wide range of material is already available on individual behavior and its management, yet further
exploration is required due to the subject’s dynamic nature. It has been found that the management theorists
and the psychologists belonging to classical era of management have paid great attention on this topic, but it
is been paid lesser attention by the researchers and scholars of the current era in spite of the fact that this
subject is dynamic in nature and time has changed a lot since past to today, and moreover that the human
behavior impacts the performance of other employees and organizational culture (Hart, 2006).
An employee’s behavior is one of the most dynamic variables in his performance or outcomes (Robins, 1999).
An individual with best genetic characteristics and positive attitude towards his job is influenced with the
behavior of his peers and co-workers (Coulter, 1999). It is true, and especially, in this era of boundary-less
global businesses facing global competition, such factors influencing the performance of employees cannot be
ignored. It is more rigorous in multinationals as the employees in such organizations have diversified cultural
backgrounds and personal behaviors, and consequently, management of employees’ behavior is of more
significant importance (Ramburuth, 2005).
If we keep the vision of the organizations aside, we can say that the fundamental reason behind a multinational
organization’s existence is generating as much profit as possible, for which they always put in extra efforts,
like increasing operations, enhancing brand image, increasing product lines, etc. But in all this, i.e. fulfillment
of its mission or goals, human resource and their performance plays a powerful role. Hence, to analyze the
future of organizations, it is important for organizations to first measure the performance of its employees with
their pre-established standards and goals, and then formulates strategies accordingly. It is the primary job of
the operational managers to take steps so as to improve the employees’ performance, and discover and
eliminate all those factors and forces that restrict employees to perform their roles and responsibilities at their
full potential. In the modern organizations, creating goods and selling them is not the primary task, rather
creating such conditions in the organizations where employees could give in their best, while conducting the
economic activities in alignment with the goals of the organization, is considered as the basic task of managers.
Toxic behavior is one of those forces which have laid impact on the performance of the employees, but it has
not gained much attention.
The basic objective behind this study is to explore the vast literatures available on behavior management, to
combine the different theories together in a single paper and to suggest ways to the multinational
organizations for improvement of employees’ behavior. Along with meeting the objectives of the research,
the study has also highlighted the requirement for further research on the topic and has, in a way, opened the
new doors for further research to strengthen the existing theories and explorations, and to provide new models
which would enable managers to develop the behavior of employees in multinational organizations.
LITERATURE REVIEW
Under this section of the paper, several well-known theories and papers on behavior management have been
evaluated. Although most of these theories cover only motivation and performance aspects, yet there are other
factors as well, and any factor’s importance cannot be ignored because they all play a major or minor role in
understanding the behavior of employees at work (Barton, 2006).
When human organs having the power of thinking, feeling, sensing, expressing and reflecting respond, it is
known as behavior (Hartt, 2006). Behavior and attitude are similar terms. The major difference between them
is that while attitude is an individual’s internal state of mind, behavior is external (Clark, 2008) and attitude
gives shape to behavior (Howard, 2003). However, it is also been said that if a person displays a repetitive
behavior towards a particular situation, his general attitude will be build accordingly (Clark, 2008).
An individual’s behavior imitates or works in collaboration with his nervous system and its activity. It is
influenced by several factors like past critical experiences, external environment, neuronal structure and
internal environment and changes therein (Hart, 2006). Many researchers have tried to explore the impact of
drugs on the behavior of a human behavior and have found that it has a highly significant relationship (Wilson,
2000).
In order to obtain effective results of behavioral analysis, it must be ensured that the observation is repeated
by more than one observer and on different time intervals because, as Hart argues, observation by more than
one observer would make the study free of any kind of biasness (Hart, 2006). Another alternative to it, as stated
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by Hart, is recording of experiments of behavior observers through a single video, as it would provide the
option of multiple scoring of the same behavior.
CONCEPTS AND THEORIES
Performance
Source: Bartol Kathryn M. (2006), Management
Bartol, in his study conducted in 2006, depicted the above diagram to state the factors which influences the
efficiency and effectiveness of an employee in an organization. These factors are abilities, motivation, working
conditions and performance; and behavior of employees play a vital role in each of them. For example, the
employees with positive behavior are good learners (Bowen, 2009). They have abilities, but still deem and
undergo the phase of training & development provided in the organization as an opportunity so as to obtain
maximum benefits from it (Brien, 1999). This opportunity increases their level of curiosity, and they strive to
find more knowledge and absorb it. Again, in case of motivation, behavior of one employee is different from
that of other (Maslow). Management gurus and psychologists have conducted extensive study in this field, and
have devised different tools and techniques to motivate them (Cascio, 2003). As far as contribution of
behavioral aspect of employees in the development of working conditions or organizational culture is
concerned, no rich material is available (Bartol, 2006). This factor and its relation with behavioral aspect have
received ignorance since time by management theorists as it has an indirect relationship with performance and
efficiency of employees. Although they are indirectly related, this factor cannot be ignored as it lays a profound
impact on the performance level and efficiency of employees which the previous authors or researchers have
also accepted. Hence, there is a need to examine this factor and its relation with human behavior in some more
detail. The last factor, performance, should be efficient and for this, behavior plays a prominent role (Marton,
2006). From the mid of 19th century, study on identification of human behaviors and their management began.
In the following paragraphs, the behavioral theories, under the heads of organizational performance,
motivation of employees, and behavioral impact on organizational culture, shall be analyzed.
Behavior Impact on Organizational Culture
Elton Mayo, F.J Roethlisberger, and William J. Dickson, the three management experts, conducted studies on
human behavior and its relationship with performance, both individually as well as in groups (Martin, 2006).
Elton Mayo stated that by introduction of rest periods in organization, morale of employees and their
performance can be enhanced. However, their Hawthorne studies concluded that the lighting conditions in
organizations have a profound impact on employees’ performance (Bartol, 2006) and that giving special
treatments to the employees undoubtedly improves their performance. Further, their third study stated that
employees formulate their own informal standards and norms to be followed when they work in a group.
Further, the Behavior Science Movement, during this same period, focused on the finding that it is always not
necessary that higher job satisfaction enhances productivity. Another theory propounded was Reinforcement
Theory which is helpful for organizations and management in devising strategies or actions towards employees
displaying particular kind of behavior.
Types of Reinforcement
Reinforcement theory, formulated by psychologist B.F. Skinner, is beneficial in understanding the behavior of
an employee towards a specific course of action. It describes the law of effect and that the behaviors with
positive consequences are more likely to be repeated than behaviors with negative consequences.
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Source: Psychologist B.F. Skinner
From the above diagram, we can see that there are four types of reinforcement. The type of reinforcement
decides the effect on behavior and maturity. When a positive or pleasant stimulus is presented to employees,
they increase the maturity level and display of such behavior in context of which it is received and work in
favor of the organization. This is positive reinforcement. Similarly, when a negative or unpleasant stimulus is
removed, the employee’s immaturity level increases and also his display of such behavior, it is negative
reinforcement. When unpleasant stimulus is presented to employees, and he decreases such behavior, but
increases immaturity which would contaminate the entire organization in future, it is punishment, but when a
pleasant stimulus is removed or taken back from the employee and yet he displays decrease in behavior, it is
extinction or negative punishment.
4.4T
The Behavior Modeling Process
Source: Albert Bandura
In order to amend the behavior of employees, managers need to follow the behavior modeling process as
designed by the well-known psychologist, Albert Bandura. The first step under the process is paying attention
to the behavior displayed by each and every employee in the organization, and to retain whatever is good and
healthy for efficient performance and organizational development. The next step is reproduction in which
employees try to reproduce what they see around them. If they do not try to change, they are motivated to do
so and thus a new behavior is developed in them which is beneficial for both of them, i.e. employees as well
as organization as a whole. But this theory is based on the assumption that employees do not have their own
thinking capacity and that there is no way to measure the success of behavior development.
RESULTS & ANALYSIS
In case of multinational companies, cross-cultural competence is one of the pre-requisite for managers acting
as global leaders, as well as employees, because they have to manage diversified behaviors resulting from
diversified culture, within these organizations (Ramburuth, 2005). Bloom (2009) says that in case of global
operations, competitive strategies include managing people, which in turn implies:
(a) Selecting employees having a right kind of behavior
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(b) Imparting behavioral training to employees, and
(c) Developing such processes which can analyze and control their behaviors.
It has been found that positive behavior does not create as much positive impact as negative behavior creates
a negative impact. No other factor disturbs the performance of the employees as negative behavior. It not only
affects the performance of the person displaying it, but also all those associated with him (Cascio, 1998). On
thorough analysis of different theories in context of behavioral management, it has been found that an
employee’s behavior has a significant impact on his own performance as well as on the performance of other
employees (Heames, 2006). It has also been revealed that there is a vicious circle between organizational
culture and behavior of employees and it is in such a way that the consequences of different behaviors of
employees contributes in the development of organization’s culture, and the organization’s culture, in turn,
again lays impact on the behavior and work performance of new employees. Through studies, especially of
Forman (2009), following factors, affecting the behavior of employees and creating differences in them, have
been revealed:
 Genetic characteristics
 Physical status
 Past experiences
 Environmental conditions
CONCLUSION
Behavioral tools, its applications and the benefits derived from it are not very much popular in developing
countries like India, Pakistan, Canada, etc. Here, both the private as well as the public sector organizations
demand performance but are not very much familiar with the concept of behavioral management which helps
in increasing the organizational performance. Amongst both, public sector organizations are more traditional
than the private sector organizations, but this research paper is constructed to be beneficial for all, especially
focusing on multinational organizations. It has emphasized on the study of behavior in organizations and its
management so as to enhance the performance of the employees and thus the company. Behavior management
is vital and this paper gives a comprehensive knowledge on the same which can be of immense help to future
research scholars as well as organizations focusing on enhancing performance.
LIMITATIONS OF STUDY
Although efforts have been put in to combine the several theories of “behavior management” and provide a
single paper which would give a comprehensive knowledge to future scholars as well as managers on this
subject-area, but they are yet limited in number as some of them still remains un-explored because of constraint
of time and resources and also that some websites demand subscription charges to download useful
information, and the resources at scholar level does not allow me to pay these subscriptions. Moreover, it is
limitation that our study is based only on secondary data. Hence, further study can be conducted to collect first
hand information
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SPIRITUAL INTELLIGENCE, RELIGIOUS BELIEF, PERSONAL
CONTROL AND MENTAL HEALTH: A CORRELATIONAL STUDY
ABSTRACT
Ms. Santosh Meena 1
Spiritual intelligence is a set of mental capacities which contribute to the awareness, integration, and
adaptive application of the nonmaterial and transcendent aspects of one’s existence. Religiosity has been
defined as an organized belief system with set rituals and practices, which are acquired in places of
worship. Personal control refers to the feelings, beliefs, or judgments people have about their ability to
control events. The belief that one has a behavioral response available to influence the evasiveness of an
event. Mental health is a state of well-being in which the individual realizes his or her own abilities, can
cope with the normal stresses of life, can work productively and fruitfully and is able to make a
contribution to his or her community. In the contemporary research area of mental health, there has
been lots of emphasis on the notion of spiritual psychology and the importance of religion on many
psychological constructs related to mental health. The paradigm shift has taken place over the last 20
years and attention has been shifted to positive mental health and how spirituality and religion can play
a role in enhancing mental health the current research will explore the constructs of spirituality, religious
beliefs, and personal control and their role in enhancing mental health. The key objective of the present
study is to examine the relationship among spiritual intelligence, religious belief, personal control and
mental health. For this Purpose a sample of 70 Male and Female Adult’s was randomly drawn, age ranging
from 25 to 35. Tools used in the study were: The Spiritual intelligence self report inventory (2008 D.
King), Belief in personal control scale (Joy L. Barrenberg 1987), Religions scale (Koenig & Bussing 2010)
and Mental health inventory (Dr. Jagdish 1985). Data was analyzed through correlation method. It was
found in the study that there is a significant positive relationship between spiritual intelligence and
personal control, religious belief and mental health, religious belief and personal control. The relationship
between spiritual intelligence and mental health is also positive but it was not significant.
KEYWORDS: spiritual intelligence, religious belief, personal control and mental health
INTRODUCTION
"Spirituality" is the basic feeling of being connected with one's complete self, others, and the entire universe."
If a single word best captures the meaning of spirituality and the vital role that it plays in people's lives, that
word is "interconnectedness." Spirituality should not be treated as a jargon to find place in philosophical books
but it encapsulates the very essence of practicing life with simplicity. In contrast to religion that is organized
and communal, spirituality is highly individual and intensely personal. One doesn't have to be religious in
order to be spiritual. Spirituality, as traditionally understood, seems better characterized by consciousness than
by abstract reasoning. For example, one research group has defined spirituality as a way of being and
experiencing that comes about through awareness of a transcendent dimension and that is characterized by
certain identifiable values in regard to self, others, nature, life, and whatever one considers to be the Ultimate.
Amram (2007) identified seven major themes of spiritual intelligence, including meaning, consciousness,
grace, transcendence, truth, peaceful surrender to Self, and inner-directed freedom. Gardner (1993, 2000) has
remained hesitant to accept a spiritual intelligence in his own model of multiple intelligences, arguing that the
concept is too confounded with phenomenological experience and religious belief. The subsequent model also
assumes a contemporary interpretation of spirituality that distinguishes it from the construct of religiosity
(King, Speck, & Thomas, 2001; Koenig, McCullough, & Larson, 2000; Love, 2002; Wink & Dillon, 2002).
Religion is viewed as “an organized system of beliefs, practices, rituals, and symbols” (Koenig et al., 2000, p.
18), while spirituality is regarded as “the personal quest for understanding answers to ultimate questions about
life, about meaning, and about relationship to the sacred or transcendent” (p. 18). Zohar and Marshall (2000)
1
Assistant Professor, Banasthali University
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created the term spiritual intelligence. The term derived from the Latin word ‘Wind or breath’. This is literally
a wind that is blowing through us, the principle that makes us alive and humane.
Spiritual intelligence is the consequence of the highest level of individual growth in the fields of cognition,
meaning attainment, transcendental and moral communication. (Vaughan, 2002). Religiosity is a complex,
multidimensional construct and for the purpose of this project refers to the degree to which a person is religious
from a primarily social and doctrinal perspective and is thus more easily quantifiable than abstract terms such
as religion (Miller, 1998). Religiosity has been defined as ―an organized belief system with set rituals and
practices, which are acquired in places of worship (Zullig, Ward, & Horn, 2006, p. 255).
Religiosity is a complex, multidimensional construct (Allen & Lo, 2010), and thus it is not easily measured.
However, some ―common measures of religiosity include denominational identification, frequency of
participation in religious services, the degree of religion‘s meaningfulness to an individual, and the degree of
the individual‘s closeness to members of a religious group (Allen & Lo, 2010, p. 435).
Religiosity also been shown that in order to gain a true perspective on religiosity it is necessary to include a
measure of the individual‘s attendance at religious services and activities (Call & Heaton, 1997).
Religiosity was also suggested by Call and Heaton (1997) that this may be due to the effect that attendance
has on the ―amount of indoctrination a person receives in a particular theology (p. 383).
Personal control refers to the feelings, beliefs, or judgments people have about their ability to control events.
The belief that one has a behavioral response available to influence the averseness of an event (Thompson,
1981).
Personal control mayor may not be correlated with self-efficacy: one's confidence in his/her ability to achieve
a response (Little, 1988). Rotter (1966) "beliefs that individuals hold regarding relationships between actions
and outcomes". Personal control beliefs, also referred to as locus of control and personal mastery beliefs,
reflect individuals' beliefs regarding the extent to which they are able to control or influence outcomes. A wide
variety of theorists have emphasized the importance of perceptions of personal control and have suggested that
the desire to control the world around us (i.e., the desire for behavior-event contingency or personal control)
is a fundamental characteristic of human beings (Schultz et al, 1994; & Rodin, 1995; Rothbaum, Weisz and
Snyder, 1982 for reviews).
Mental health is a matter of universal concern; the importance of mental health is gaining growing recognition
within Northern Ireland, in the UK and across Europe. This WHO Action Plan (2005) proposes ways and
means of developing, implementing and reinforcing comprehensive mental health policies in the countries in
the World Health Organization (WHO) European Region, requiring action in 12 areas (for more information
Chapter 6 and Annex 4).
We want to see a recognition at all levels in Northern Ireland that everyone has mental health needs; that
mental well-being underpins all health and well-being; that mental health, like physical health, is a resource to
be protected and promoted. We also want to see a society where everyone plays a role in/takes action to create
an environment that promotes the mental health and well-being of individuals, families and communities.
Jahoda’s concept of mental health (1958) mentally healthy person is the one has “Efficient self-perception
Realistic self-esteem and acceptance, Voluntary control of behavior, True perception of the world, Sustaining
relationships and giving affection, Self direction and productivity health
The World Health Organization (WHO) defines health as “a state of complete physical, mental, and social
well-being, and not merely the absence of disease or infirmity” (WHO, 2005, p.2).Mental health is a core
component of this definition, yet it is an area which until recently has often been overlooked, and continues to
be seen as secondary to the promotion of physical health goals.
Mental health is a significant predictor of physical health and quality of life, and good mental health provides
individuals with a foundation for well-being and effective functioning (WHO, 2005). Mental and physical
health are interdependent, and as such, it is necessary to address individuals’ mental health needs in order to
improve overall health outcomes.
LITERATURE REVIEW
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Persinger (1996), Ramchandran and Blakeslee (1998), and Johar and Marshall (2000), have provided scientific
evidences for the existence of spiritual quotient in the human brain. The scientific aspect of spiritual quotient
indicates that it contribute positively toward human life and its growth.
A study by Fehring, Brennan and Keller (1987) investigated that relationship between spirituality and
psychological mood states and response to change in life. Results suggest and inverse relationship between
negative mood state and spiritual wellbeing, existential wellbeing and spiritual outlook.
Landis (1996), found a negative relationship between spiritual wellbeing and uncertainly, and a positive
relationship between physiological adjustment and spiritual wellbeing.
According to O’Neill and Kenny (1998), stressor can lead to changes in wellbeing, to spiritual distress and to
the struggle with existential questions such as “what is the meaning of life?”
Call and Heaton (1997) suggested that marriages, when characterized by higher levels of religious attendance,
are more stable because the spouses have higher levels of satisfaction and stronger attitudes opposing nonmarital sex. Gartner, Larson, and Allen’s (1991) review of approximately 200 studies demonstrated a number
of findings. First, a salutary relationship between religiosity and positive functioning was demonstrated in a
number of areas. However, ambiguous overall results were found in the relationships between religion and
anxiety, sexual disorders, psychosis, prejudice, self-esteem, and intelligence.
Payne, Bergin, Bielema, & Jenkins. (1991), concluded that the ambiguous findings among psychologists of
religion may be due to religion’s multifaceted nature, and they call for greater specificity in how psychologists
operationalize both religiosity and mental health.
According to Burgess, Morris, and Pettingale (1988) people newly diagnosed with breast cancer or lymphoma.
Those with internal locus of control (the belief that they had control over important outcomes in their lives)
also had less depression and anxiety and a more positive and confronting coping style than did those with an
external locus of control (the belief that control over outcomes in their lives rested outside themselves).
Affleck, Tennen, Pfeiffer, & Fifield, (1987), found control related to poorer outcomes among patients with
rheumatoid arthritis. They argued that having a sense of personal control in situations that offer few
opportunities for actual control may lead to Difficulties.
Eitel, Hatchett, Friend, Griffin, and Wadhwa (1995) revealed that control over treatment among patients with
end-stage renal disease was associated (cross-sectionally) with poorer adjustment.
Burger (1989) research on perceptions of control identified several conditions that he believed cause people to
relinquish control or to experience distress under conditions of perceived control. Of special relevance at
present is his conclusion that personal control is undesirable when control reduces the likelihood of attaining
a desired outcome (or when it increases the likelihood of an undesired outcome).
Koenig and Larson found both negative and positive associations between religious involvement and mental
health.
According to study conducted by Ryff and Keyes (1985), environmental mastery, personal growth and purpose
in life are the important determinants to mental health. According to Potter, Smith, Strobel, & Zautra (2002),
the psychological environment of the workplace contributes unique effects on well-being of the individual.
To examine the relationship among spiritual intelligence, religious belief, personal control and mental health
HYPOTHESIS
There will be a significant positive relationship among spiritual intelligence, religious belief, personal control
and mental health
METHODOLOGY
Sample:
For this Purpose a sample of 70 Male and Female Adult’s was randomly drawn, age ranging from 25 to 35.
Tools employed:
[1]
[2]
[3]
[4]
The Spiritual Intelligence Self Report Inventory (D. King, 2008).
Belief in Personal Control Scale (Joy L Barrenberg, 1987).
Religions Scale (R .Harold G .Koenig & Arndt Bussing, 2010).
Employee’s Mental Health Inventory (Dr. Jagdish, 1985).
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Procedure:
In this study the sample was selected, and the subject was made aware of the purpose of the study. Each scale
was administered separately and independently and instructions were given to the subject and each of them
was asked to read carefully. There was no time limit but the subjects were asked to complete the task as early
as possible. After this thanked for voluntary participation and cooperating in administration of the test.
After collecting the data on proposed sample, the scores obtained on each item of the questioners were coded
and entered on data sheet and SPSS data file. Coded scores were analyzed in terms of means, standard
deviations, t-test, and coefficients of correlation with the help of SPSS, in accordance with the objectives of
the present study.
RESULTS
Variables
Spiritual intelligence VS Mental health
Spiritual intelligence VS Personal control
Religious belief VS Mental health
Religious belief VS Personal control
**Correlation is significant at 0.01 levels
Correlation
.176
.003**
.000**
.001**
Table displays coefficient of correlation between spiritual intelligence and mental health. There is insignificant
and positive correlation between spiritual intelligence and mental health. A significant positive relationship
seen between spiritual intelligence and personal control. Table also reveals that coefficient of correlation
between religious belief and mental health, the correlation is significantly positive. Table also depicting that
religious belief and personal control have positive and significant coefficient of correlation.
DISCUSSION
The present study investigates the relationship among spiritual intelligence, religious belief, personal control
and mental health.
In spite of the astonishing advancements obtained through technology, man has not achieved mental peace,
which is the basic element of health and a blissful life from the perspective of the World Health Organization.
The concept of spiritual intelligence which has been developed through global attention combines spirituality
and intelligence within new structure. Spiritual intelligence emphasize on the healing of the person, not just
the disease. It views life as a journey, where good and bad experiences can help you to learn, develop and
mature. Mental health of an individual is impacted by everyday experiences in all settings. other factor also
effect the mental health like, work, family, and social environments can affect the capacity of individuals to
live their life, deal with life’s challenges, and achieve wellbeing. It was hypothesized that there would be a
positive relationship between Spiritual intelligence and mental health. The result indicates that sample group
has positive but insignificant relationship between Spiritual intelligence and mental health. The result does not
support the hypothesis framed for the study because the relationship is not significant. A study by Fehring,
Brennan and Keller (1987) investigated that relationship between spirituality and psychological mood states
and response to change in life. Results suggest and inverse relationship between negative mood state and
spiritual wellbeing, existential wellbeing and spiritual outlook. A study by Rowe and Allen (2004), suggests
an positive relationship between health and spiritual intelligence.
Religious belief helps in mental health promotion and mental well-being underpins all health and well-being.
When people are more religiously inclined they tend to have an optimistic outlook towards life. Also they try
to explain the entire situation in positive manner. When one is optimistic he/she is mentally healthy as compare
to people who do hold their religious belief, this may be the reason for positive relationship between the two.
In order to test the hypothesis constructed in the present study, an attempt was made to study the relationship
between Religious belief and mental health. The result obtained is indicating a significant and positive
relationship between Religious belief and mental health; hence the hypothesis supports the framed study.
Koenig and Larson (2001) investigated that a generally positive relationship exists between religiosity and
mental health, and include several suggestions for mental health practitioners in dealing with religious issues
in therapy. Koenig et al. (2001) have recently completed a systematic review of studies on religion and mental
health in their Hand Book of Religion and Health. They identified 850 relevant studies conducted in the 20th
century addressing the relationship between religious involvement and mental health. Although they used a
broad term to define mental health and well-being, which include psychologically perceived well-being, life
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satisfaction, hope, optimism, purpose and meaning in life, depression, anxiety, and suicidal ideation, most of
the studies reported the positive role of religious involvement in maintaining mental health.
Spiritual intelligence helps to master our personal beliefs which reflect individuals' beliefs regarding the extent
to which they are able to control or influence outcomes. A spiritual person knows about the self, him /her
aware about one’s self or our surroundings. Through this a person can control own beliefs or self, his awareness
about self is increased and his control on own self is increased. The result obtained is indicating a positive and
significant relationship between spiritual intelligence and personal control; hence the findings support the
hypothesis framed for the study.
Religious conviction can be a defensive source of compensatory control when personal or external sources of
control are low. People who believe in a powerful and influential God but aren't as strongly devoted to religious
rituals like praying or attending service report a lower sense of personal control in their lives; In contrast,
individuals who believe that God will influence outcomes in everyday life do not report a deflated sense of
personal control if they actively participate in religious rituals. The hypothesis framed for the study that there
would be positive and significant correlation, and the result support the hypothesis framed for the study that
there would be a positive and significant relationship between Religious belief and Personal control. Hence,
the findings supports the hypothesis framed for the study.
CONCLUSION
It was found in the study that there is a significant positive relationship between spiritual intelligence and
personal control, religious belief and mental health, religious belief and personal control. The relationship
between spiritual intelligence and mental health is also positive but it was not significant.
LIMITATION AND RECOMMANDATION
[1] Since the research was conducted on a relatively small sample size (N=100), it can be conducted on a
larger population.
[2] As the research was limited to educational institutions only, the data could be collected from other
organizations too apart from educational institutions.
[3] A cross sectional and cross institutional study may derive more meaningful results.
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SUBJECTIVE VITALITY AS PREDICTOR OF CURIOSITY AND SELFANCHORING
ABSTRACT
Ms. Udita Kaushik 1
The 21st century is one of the most competitive eras witnessed by the human race. To succeed in any
competition one needs to grow. If not so the stagnation occurs and instead of doing well to one’s mental
health it produces stress in the individuals and hence deteriorates their mental health. Thus, every
individual has a tendency to grow not only in his or her field but universally. The tendency to pullulate
has inclined them towards increasing their knowledge base. One can also say that they have tended to be
more curious about their surroundings and this curiosity leads them to know more and enhance their
knowledge base. An individual’s curiosity can be high only if he/she has a good level of subjective vitality.
Subjective vitality is the energy for self, curiosity is the arousal tendency to know and self anchoring is
evaluating and judging oneself. Thus this study is aimed at exploring the relationship among subjective
vitality, curiosity and self anchoring. The study was conducted on a sample of 100 (75 females and 25
males) of 18-21 years of age. The measures used were curiosity and exploration inventory-II by Kashdan
et al. (2009), subjective vitality scale by Ryan and Frederick (1997) and Cantril’s self-anchoring striving
scale (1965). Multiple regression analysis revealed that high subjective vitality group was strongly
predicting curiosity and self-anchoring whereas low subjective vitality group was not predicting curiosity
and self-anchoring.
KEYWORDS: Subjective Vitality, Curiosity, Self-anchoring
INTRODUCTION
The concept of well-being has traditionally been viewed in terms of one’s subjective evaluation of self.
Subjective well-being is echoed in the appraisement of one’s life encompassing cognitive appraisal in terms
of acquaintance, lore and adage. It is the major grantor in one’s atonement and thereby creates a feeling of
sense of achievement and self-confidence. It is inimical that when such evaluation does not contrive a feeling
of bliss, an individual move in the pursuit of discernment by engaging with the world. Such quest is tendered
by several factors like, one’s eagerness to know and subjective vitality.
The state of feeling alive and alert - to having energy available to the self, as being vital and energetic is part
of what it means to be fully functioning and psychologically well. Ryan and Fredric (1997) characterized
subjective vitality as an entity full of energy, enthusiasm and liveliness, without fatigue, weariness or
exhaustion, and proved that when the subjective vitality is at a lower level, irritability and fatigue will result
and likely reduce the potential for doing activities. A growing body of research in the arena of subjective
vitality unravelled close cliques with psychological and social functioning (Salama-Younes, 2011), mental
health (Salama-Younes, 2011), and so on. Bostic (2002) declared that there is a high level relation between
psychological adjustment, physical health and subjective vitality.
It is plausible to consummate that this viable energy will sustenance in maintaining the zeal of people to
achieve psychological well-being , quality of self acceptance, purpose in life and personal growth. It is
assumed that this unbounded energy is utilized by people to enhance their knowledge and the only way to
knowledge is curiosity. Curiosity is a state of arousal associated with interest and exploration, curiosity
promotes personal discovery through engagement with the world. It is an important motivational component
(but not the only one) that links cues reflecting novelty and challenge (internal and external) with growth
opportunities (Kashdan, Rose & Fincham, 2004). A primary facilitator of personal growth is sensitivity to its
prerequisites. Curiosity prompts proactive, intentional behaviours in response to stimuli and activity with
properties- novelty, complexity, uncertainty and conflict (Kashdan, Rose & Fincham, 2004). An explosive
research work in the coliseum of curiosity has deciphered that curiosity is an intense pleasant experience (Izard,
1
M.A. Student, Department of Psychology, Banasthali Vidyapith, Rajasthan (India)
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1977). Curiosity make people seek out personally meaningful interests and desires and thereby is intrinsically
motivating (Deci, 1975). Past literature has shown association between curiosity and various psychological
constructs, like, creativity ((Puccio, Murdock, & Mance, 2007), fear (Cameron, 2005), intrinsic motivation
(Ryan & Deci, 2000), interpersonal relationships (Kashdan & Roberts, 2004).
Mishmash of knowledge and experience leads an individual to evaluate and judge oneself, depending on the
time frame of the assessment period. Thereby, guides an individual to seek path of progression and selfanchoring. Thus, self anchoring refers to experiencing, evaluating and guiding one’s self.
In summary, the investigators designed a study to assess the relationship among subjective vitality, curiosity
and self-anchoring.
OBJECTIVES
[1] To see the relationship of subjective vitality with curiosity and self-anchoring.
[2] To see the relationship of curiosity with self-anchoring.
PROBLEM
To examine whether there would be any relationship of high and low subjective vitality with curiosity and
self-anchoring among undergraduate students.
HYPOTHESES
[1] Subjective vitality would be positively related with curiosity and self-anchoring.
[2] Curiosity would be positively related with self-anchoring.
VARIABLLES
 Predictor- Subjective vitality (high and low)
 Criterion- Curiosity and Self-anchoring
SAMPLE
A random sample of 100 (75 females and 25 males) college going students, in the age range of 18 to 21 years,
residing in Banasthali Vidyapith, Hindustan College, was taken. Random selection of participants was done
by using Tippett’s Table.
MEASURES
The curiosity and exploration inventory-II (CEI-II). This questionnaire was developed by Kashdan et.al.
(2009). The reliability of questionnaire is 0.86 and the validity is 0.50.
The subjective vitality scale (VS). This questionnaire was developed by Ryan and Frederick (1997). The
reliability of questionnaire is 0.84 and the validity is 0.60.
The Cantril self- anchoring striving scale (CSASS). This questionnaire was developed by Cantril (1965). The
reliability of questionnaire is 0.66 and the validity is 0.82.
Procedure
institutions and informed consent from the participants. After the grant of permission the questionnaires were
given to the subjects. Participants were given the instructions before handing over the questionnaires.
Participants were asked to fill the questionnaire as soon as possible, as there was no time limit to fill the
questionnaires. After taking back the questionnaires, scoring and statistical analysis was done.
RESULT INTERPRETATION
Variables
Subjective vitality
Curiosity
Self anchoring
Table 1
Mean and standard deviation
Mean
36.01
37.31
15.37
SD
5.60
5.86
2.26
Table 1 depicts mean and standard deviation of the variables - subjective vitality, curiosity and self anchoring.
The mean score for subjective vitality is 36.01 deviating by 5.60 in both the directions. Similarly mean score
for job curiosity is 37.31 with the standard deviation of 5.86 and the mean score for self anchoring is 15.37
deviating by 2.26 in both the directions. This means the average score of subjective vitality lies within
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36.01±5.60, average score of curiosity lies within 37.31±5.86 and the average score of self anchoring lies
within 15.37±2.26.
Table 2
Median of grouping variable
Variable
Subjective Vitality
Median
36
The median split technique (Table 2) was used for making two sub-groups of a variable, namely, subjective
vitality. The median of subjective vitality is 36. Thus, scores below 36 were clubbed as low subjective vitality
group and scores above 36 were considered as high subjective vitality group.
Variables
Curiosity
Subjective Vitality
Self-Anchoring
**p < 0.01 level
Table 3
Correlation Matrix
Curiosity
Subjective Vitality
1
0.39**
0.39**
1
0.27**
0.42**
Self-Anchoring
0.27**
0.42**
1
Table 3 gives a glance to the correlation among three variables- subjective vitality, curiosity and self anchoring.
There is a highly significant positive relationship between subjective vitality and curiosity (r = 0.39, p< .01),
between subjective vitality and self anchoring (r = 0.42, p< .01) and between curiosity and self anchoring (r =
0.27, p< .01). Thus, both (1 &2) the hypotheses were accepted.
Variables
High
subjective
vitality
group
Table 4
Stepwise Regression Analysis for high and low subjective vitality groups in Curiosity
R
R2
Adjusted R
SEm
Rsquare change
β value B value
F
0.361 0.131
0.113
3.68
0.131
0.361
0.521
7.51
Sig
0.01
The above table exhibits the results of multiple regression (stepwise) analysis where criterion variable was
curiosity. The multiple correlation (R) which is dependent on inter-correlations among predictor variables as
well as to their correlations with the criterion variable was found to be 0.36. The value of R square change for
high subjective vitality group is 0.13, indicating the power of the model changes with the addition or removal
of high subjective vitality group from the model. R square of 0.13 indicates that 13% of the variance in
curiosity scores is to be accounted for by variable high subjective vitality group (individual contribution). The
value of adjusted R was found to be 0.11, which shows that 11% variance in curiosity scores is to be explained
by the predictor variable (high subjective vitality group). Thus, high subjective vitality group is strongly
predicting the criterion variable, curiosity. β value of 0.36, indicates that a change of one standard deviation
in high subjective vitality group will result in a change of 0.36 standard deviations in curiosity. The multiple
regression equation states that every unit increase in high subjective vitality group led to increase in curiosity
scores by its coefficient of 0.52 with the value of constant is 11.36. The value of F is 7.51 (p< .01). This
indicates that the R square is statistically significant, i.e., the effect of high subjective vitality group on curiosity
is significant. On the other hand, low subjective vitality group is excluded as it is not predicting the criterion
variable, curiosity.
Table 5
Stepwise Regression Analysis for high and low subjective vitality groups in Self-Anchoring
Variables
R
R2
Adjusted
SEm
Rsquare
β value
B value
F
Sig
R
change
High
0.415
0.173
0.164
2.07
0.173
0.415
0.168
9.65
0.01
subjective
vitality
group
Perusal of table 5 exhibits the results of multiple regression (stepwise) analysis where criterion variable was
self-anchoring. The multiple correlation (R) which is dependent on inter-correlations among predictor
variables as well as to their correlations with the criterion variable was found to be 0.42. The value of R square
change for high subjective vitality group is 0.17, indicating the power of the model changes with the addition
or removal of high subjective vitality group from the model. R square of 0.17 indicates that 17% of the variance
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in self-anchoring scores is to be accounted for by variable high subjective vitality group (individual
contribution). The value of adjusted R was found to be 0.16, which shows that 16% variance in self-anchoring
scores is to be explained by the predictor variable (high subjective vitality group). Thus, high subjective vitality
group is strongly predicting the criterion variable, self-anchoring. β value of 0.42, indicates that a change of
one standard deviation in high subjective vitality group will result in a change of 0.42 standard deviations in
self-anchoring. The multiple regression equation states that every unit increase in high subjective vitality group
led to increase in self-anchoring scores by its coefficient of 0.17 with the value of constant is 9.33. The value
of F is 9.65 (p< .01). This indicates that the R square is statistically significant, i.e., the effect of high subjective
vitality group on self-anchoring is significant. On the other hand, low subjective vitality group is excluded as
it is not predicting the criterion variable, self-anchoring.
Apart from regression analysis, t-values were also calculated to examine the difference between high
subjective vitality group and low subjective vitality group in terms of curiosity and self-anchoring.
Table 6
t-value of high subjective vitality and low subjective vitality scores for curiosity
Subjective vitality
Mean
df
t
High
39.77
99
4.48
Low
34.98
Sig.
.000
Table 6 evidences the t-value of curiosity in high and low subjective vitality and it reveals that there is highly
significant difference between the two groups in terms of curiosity. (t= 4.48, p<.000). Perusal of table 4
exhibits the average scores of high subjective vitality group for curiosity is 39.77 and that for low subjective
vitality group is 34.98. It is seen that the mean of high subjective vitality group is higher than the mean of low
subjective vitality group. Hence it can be concluded that high subjective vitality group possess more curiosity
than low subjective vitality group.
Table 7
t-value of high subjective vitality and low subjective vitality scores for self anchoring
Subjective vitality
Mean
df
t
Sig.
High
Low
16.16
14.61
99
3.651
.000
Table 7 evidences the t-value of self anchoring in high and low subjective vitality and it reveals that there is
highly significant difference between them. (t = 3.65, p<.000). According to table 5, the average scores of high
subjective vitality group for self anchoring is 16.16 and for low subjective vitality group 14.61. It is seen that
the mean of high subjective vitality group is higher than the mean of low subjective vitality group. Hence it
can be concluded that high subjective vitality group have more self anchoring than low subjective vitality
group.
DISCUSSION
Subjective vitality is a dynamic reflection of one’s vitality, enthusiasm, energy level, and liveliness. It is
defined as a feeling of possessing energy available to one’s self. It is a universal phenomenon that energy can
neither be created nor destroyed. The energy is simply, vested in activities performed by a person. When an
activity is completed, this energy gets absorbed in another kind of activity. According to Freud, each and
every individual has certain joules of energy. Some portion of this energy (called bounded energy) of human
beings is vested in different types of work, tension, interpersonal relationships etc. Thus, energy is bounded in
various works undertaken by people, but some energy is left unbounded. This unbounded energy is, generally,
utilized by human beings for their personal development. It is assumed that this left unbounded energy is
employed by individuals in various manners to augment one’s knowledge, which is the route to personal
discovery through engagement with the external world and the only way to acquire knowledge is curiosity.
Hence, one’s thirst for curiosity could be quenched by acquiring more and more expertise, proficiency, savvy
and erudition and this could be accomplished when people have some unbounded energy. Thus, this could be
the possible reason that subjective vitality and curiosity were positively related to each other. A study
conducted by Ryan and Fredric (1997) lends its support to the present finding. According to them subjective
vitality is an entity full of energy, enthusiasm and liveliness, without fatigue, weariness or exhaustion, and
proved that when the subjective vitality is at a lower level, irritability and fatigue will result and likely reduce
the potential for doing activities. When the subjective vitality is at a higher level, mood is in a proper status
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and sufficient energy is created so all duties and activities are performed well. Subjective vitality indicates an
entity full of positive mental energy and a vital and cheerful person is an alert and fresh person, full of life and
energy.
Subjective vitality is energy which is for personal enhancement - enhancement of skills, interests, etc. Human
beings have a tendency to grow in life and make themselves better as per their personal concern so that it could
be useful to them. Ryan and Fredrick (1997) conceptualize subjective vitality as the experience of having
positive energy available to or within the regulatory control of one's self. Accordingly, to the degree that one
is free of conflicts, unburdened by external controls, and feeling capable of effecting action, then one should
report higher vitality. That is, vitality corresponds to the experience of oneself as a potential "origin"
(DeCharms, 1968) of action. Greater subjective vitality should also accompany the experiences of autonomy
and integration (Deci & Ryan, 1991) or self-actualization (Sheldon & Kasser, 1995). In this fashion, when an
individual realizes its own potential and strive to gain proficiency, will find oneself on the ladder of fruitful
results and thereby will evaluate oneself in a positive manner. Hence, this might be the possible reason for
connection between subjective vitality and self-anchoring.
Curiosity is an arch to knowledge. As knowledge increases through curiosity, experience also increases.
Amalgamation of knowledge and experience makes an individual to evaluate oneself, where he or she stands
in a particular stage of life. This anchoring of evaluation of ourselves provides new avenues to our lives. When
the person evaluates himself/herself positively, it will lead to a happy and positive mood state and vice-versa.
Thus, an association between curiosity and self-anchoring could be seen.
CONCLUSION
The present study suggests that as subjective vitality increases, an urge for curiosity and self-anchoring also
increases. Further empirical studies should be conducted for exploring the role of subjective vitality in
affecting cognitive variables. Past researches have shown that subjective vitality is mitigating the well-being.
So, considering the importance of its diverse impact on various domains, suitable interventions should be
designed for burgeoning of subjective vitality.
REFERENCES
[1] Berlyne, D. E. (1960). Conflict, arousal and curiosity. New York: McGraw-Hill
[2] Bostic, J. H. (2002). Constructive thinking, Mental health and physical health, an explanation for Tory model of correlated
construct in health psychology. Ph.D. dissertation. Saint Lovis University.
[3] Cameron, J. (2005). The artist’s way: A spiritual path to higher creativity. [Audiobook]. New York: Penguin Audio.
[4] Cantril, H. (1965). The pattern of human concerns. New Brunswick, NJ: Rutgers University Press.
[5] Deci, E.L. (1975). Intrinsic motivation. New York Plenum.
[6] Deci, E. L., & Ryan, R. M. (1991). A motivational approach to self: Integration in
personality. In R. Dienstbier (Ed.),
Nebraska Symposium on Motivation: Vol. 38. Perspectives on motivation (pp. 237-288). Lincoln: University of Nebraska
Press.
[7] DeCharms, R. (1968). Personal causation: The internal affective determinants of behavior. New York: Academic Press.
[8] Izard, C.E. (1977). Human emotions. New York: Plenum.
[9] Kashdan, T. B., Gallagher, M. W., Silvia, P., Breen, W. E., Terhar, D., & Steger, M. F. (2009). The Curiosity and Exploration
Inventory-II: Development, factor structure, and initial psychometrics. Journal of Research in Personality, 43, 987-998.
[10] Kashdan, T., & Roberts, J. (2004). Trait and state curiosity in the genesis of intimacy: Differentiation from related constructs.
Journal of Social and Clinical Psychology. 23(6), 792-816.
[11] Kashdan, T.B., Rose, P., & Fincham, F.D. (2004). Curiosity and Exploration: Facilitating positive subjective experiences
and personal growth opportunities. Journal of Personality Assessment, 82(3), 291-305.
[12] Puccio, G.J., Murdock, M.C., & Mance, M. (2007). Creative leadership: Skills that drive change. Thousand Oaks, CA: Sage
Publications.
[13] Ryan, R.M., & Deci, E.L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development
and well-being. American Psychologist, 55(1), 68-78.
[14] Ryan, R. M., & Frederick, C. M. (1997). On energy, personality and health: Subjective vitality as a dynamic reflection of
well-being. Journal of Personality, 65, 529-565.
[15] Salama-Younes, M. (2011). Positive Mental Health, Subjective Vitality and Satisfaction with Life for French Physical
Education Students. World Journal of Sport Sciences 4 (2), 90-97.
[16] Sheldon, K. M., & Kasser, T. (1995). Coherence and congruence: Two aspects of personality integration. Journal of
Personality and Social Psychology, 68, 531-543.
[17] Tough, A. (1969). Some major reasons for learning. Self- Concept in adult participation. Conference report and bibliography.
(ERIC Document Reproduction Services No. ED 033252). pp. 19-38.
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RELATIONSHIP AMONG HOPE, MEANING OF LIFE AND
SATISFACTION WITH LIFE AMONG COLLEGE GOING STUDENTS
ABSTRACT
Ms. Jyoti Mishra 1
In 21st century everyone is rushing in their life to do something worthwhile in order to fulfil their needs.
This is causing a serious threat to their mental health and they are not able to work hard to achieve their
goals. But if their life becomes meaningful, they will be satisfied with their life and hence, will be hopeful
and optimistic towards their life in future. To understand the relation among Hope, Meaning of life and
Life satisfaction, this study was conducted. Hope a goal is a hoped-for end toward which thought,
planning, and effort are directed. Meaning of life is a sense of order, coherence and purpose in life; the
attainment of meaningful goals, resulting in a feeling of fulfillment. Satisfaction with life causes
satisfaction in specific life domains. This study was conducted on a sample of 90 girls educational
institutions by using three tools- The Meaning of life Questionnaire is designed by Steger, M. F., Frazier,
P., Oishi, The Satisfaction with life scale (SwLS) developed by Diner at al. (1985), The Adult Hope scale
(AHS) is developed by Synder, C.R. Harrish .The data was analyzed using correlation design. It was found
in the study that there is a insignificant positive correlation between hope and satisfaction with life, while
there is insignificant negative correlation between hope and meaning of life. Satisfaction with life and
meaning of life are significantly negatively correlated with each other.
INTRODUCTION
In this modern Era each and every people want to spend a successful life and for this they want to do all those
things which can make their life easy and flexible. Hope is a construct that is related to successful goal
attainment, and includes pathways (routes to a goal) and agency (perceived capability of pathways utilization)
thinking Hope is a goal-focused cognitive process that is conceptualized by three necessary and interactive
components: goals, agency thinking, and pathways thinking (Snyder, Feldman, Shorey, & Rand, 2002).
Life satisfaction is his/her satisfaction within the domains of finances, romantic relationships, and health. Only
bottom-up theories predict changes in domain satisfaction (e.g. satisfaction within one particular life domain).
All other theories predict that changes in domain satisfaction have no effect on life satisfaction. To improve
life satisfaction from a bottom-up perspective, the focus should be on changing the environment and
experiences a person has. In support of bottom-up theories, many cross-national studies have shown that those
living in impoverished countries report lower levels of subjective well-being (Diener & Biswas-Diener, 2002).
Meaning of life Decades ago, formulated how freedom can lead to the refusal to take a stand He considers the
indifference of people towards themselves as “the true moral issue today”. According to him, man encounters
this indifference in the fact that we have lost a sense of meaning and of the uniqueness of the individual. Berlin
(1958) warns against the conception of liberty in a negative sense, or liberty as defined by the fact that others
don’t interfere in a person’s business.
OBJECTIVE
To examine the difference between high hope group and low hope group in terms of meaning of life and
satisfaction with life.
HYPOTHESES
[1] Hope would be significantly correlated to meaning of life
[2] There would be significant correlation between hope and satisfaction with life
[3] There would be a significant difference between high hope and low hope in term of satisfaction with
life.
[4] There would be a significant difference between high hope and low hope in terms of meaning of life.
1
M.A. Student, Department of Psychology, Banasthali Vidyapith
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Sample: A random sample of 90 college going female students, in the age range of 18 to 22 years, residing in
Banasthali Vidyapith, was taken. Random selection of participants was done by using Tippett’s Table.
Tools Employed: The materials required for this research included three different assessments
[1] The Meaning of life Questionnaire is designed by Steger, M. F., Frazier, P., Oishi (2006) The
questionnaire has good reliability and test-retest stability of 0.88 Validity is 0.58-0.74
[2] The Satisfaction with life scale (SwLS) developed by Diener at al. (1985). Reliability is 0.81 Validity
is 0.75
[3] The Adult Hope scale (AHS) is developed by Synder, C.R. Harrish . it contains 12 item. Reliability
is .95 ,Validity is .80
Procedure
RESULTS
Table 1. Correlation between variables
Variables
Pearson correlation
Hope and satisfaction with life
.172
Hope and Meaning of life
-.024
Meaning of life and satisfaction with life
-.211
Significance
.104
.825
.045
Table 1 gives a glance to the correlation among three variables- hope, satisfaction with life and hope. There is
a insignificant positive correlation between hope and satisfaction with life, while there is insignificant negative
correlation between hope and meaning of life. Satisfaction with life and meaning of life are significantly
negatively correlated with each other.
N
90
Table 2. t-value of high and low hope and meaning of life
Mean
T
df
Low= 41.26
.049
88
High= 41.16
Significance
.961
Table 2 evidences the t-value of meaning of life in high hope group and low hope group. It reveals that there
is insignificant difference between them. [t(88)= 0.49, p> .05]. According to the table, the average scores of
meaning of life for high hope are 41.26 and that for hope are 41.16. It is clearly evident that there is no
difference in the mean value for meaning of life for high hope group and low hope group. Thus, it can be
concluded that meaning of life stays same for high hope group and low hope group. Thus, rejecting the
hypothesis.
N
90
Table 3. t-value of high and low hope and satisfaction with life
Mean
T
Df
Low= 22.57
2.371
88
High= 24.58
Significance
.020
Table 3 evidences the t-value of satisfaction with life in high hope group and low hope group. It reveals that
there is significant difference between them. [t(88)= 2.371, p<.05]. According to the table, the average scores
of satisfaction with life for high hope group are 24.58 and that for low hope group are 22.57. It is clearly
evident that satisfaction with life is high for high hope people than for low hope ones. Hence the hypothesis is
accepted.
DISCUSSION
The present study is aimed at exploring the relation among hope, meaning of life and satisfaction with life
among college going girls.
On the basis of literature review it was hypothesized that hope is insignificantly positively correlated with
satisfaction with life (as shown in table1) and results partially support the hypothesis .There is insignificant
positive correlation between hope and meaning of life..This implies that hope has no impact on an individual’s
meaning of life. There may be several reasons contributing to this result. We can say that hope may have
indirect effect on meaning of life of an individual. There may be several factors affecting one’s meaning of
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life such as having a secure job, family happiness, having an understanding relationship with spouse,
contributing something to the society, etc.
Hope is significantly positively correlated with satisfaction with life. This is because the more hopeful we are
in life, the more satisfaction we will have for it. If one is hopeful that he /she can do better in future, they would
be satisfied with the thought that they are capable enough and can do better, thus, being satisfied with life.
Results show that there is significant difference in satisfaction with life of high hope group, and low hope
group. This is because when one is satisfied with life, they decide a goal for it, give meaning to it with the
hope that they can do much better in future. Thus, one with high hope will be more satisfied with life than the
on with low hope.
There is an insignificant difference in meaning of life of high hope group and low hope group . The probable
reasons for such result could be that every individual has different levels to have a meaning in his/her life. One
might find meaning life if he/she acquires a good job while for some other individual meaning would be when
he/she does something good for the society. Since everyone has different experiences, have come from
different backgrounds, they tend to attribute different meanings to their life. Hope can be one moderating factor
for having meaning in life but not directly affects it. Thus, hope cannot affect his/her meaning of life.
LIMITATIONS AND SUGGESTIONS
larger population.
[2] As the research was limited to females only, conducting it on both males and females would fetch
better results.
IMPLICATIONS OF THE STUDY
This study can be used in motivating an individual to lead a more satisfied and meaningful life. We can make
them realise the importance of being hopeful in life. One can set goals to achieve in his/her life. This will help
in giving meaning to life and with the hope to achieve those goals one will be more satisfied with life.
REFERENCE
[1] Berlin, I. (1958). Two concepts of liberty. In: Berlin (1969). Four essays on liberty. Oxford: Oxford University
Press.
[2] Diener, E., & Biswas-Diener, R. (2002). Will money increase subjective well-being? A literature review and
guide to needed research. Social Indicators Research, 57, 119-169.
[3] Snyder, C.R., Feldman, D.B., Shorey, H.S., &Rand, K.L. (2002). Hopeful choices: A school counselor’s guide
to hope theory. Professional School Counseling, 5, 298 - 306.
[4] Diener, E., Suh, E. M., & Oishi, S. (1997). Recent findings on subjective well-being. Indian Journal of Clinical
Psychology, 24, 25-41.
[5] Diener, E., & Lucas, R. (1999). Personality and subjective well-being. In D.Kahneman, E. Diener, & N. Schwarz
(Eds.), Well-being: The foundation of hedonic psychology (pp. 213-229). New York: Russell Sage Foundation.
[6] Diener, E., Napa-Scollon, C. K., Oishi, S., Dzokoto, V., & Suh, E. M. (2000). Positivity and the construction of
life satisfaction judgments: Global happiness is not the sum of its parts. Journal of Happiness Studies, 1, 159176.
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LONELINESS, ALIENATION AND QUALITY OF LIFE AMONG
COLLEGE STUDENTS
ABSTRACT
Anamika Mishra 1
In modern days alienation has increased considerably, as much more people are inclined towards internet.
As a result there is no interaction between them and further leading to detachment. Due to these factors
psychological well being is negatively affected. So the three variables loneliness, alienation and quality of
life, were used for the study. Loneliness is a complex and usually unpleasant emotional response to
isolation. Alienation refers to estrangement, division, or distancing of people from each other, or of
people from what is important or meaningful to them, or of a person from their own sense of self.
Quality of life is an individual’s perceptions of their positions in life in the context of the culture and
value system in which they live and in relation to their goals, expectations, standards and concerns. A
random sample of 100 college going female students, in the age range of 18 to 22 years, residing in
Banasthali Vidyapith, was taken. Measures used were Loneliness questionnaire (2004) by Hughes, Mary,
Linda Waite Louise Hawkley and John Cacioppo, Quality of life questionnaire (1996) by WHO and
Alienation questionnaire (1988) by Dr. R. R. Sharma. Results indicated that there is significant difference
between high and low loneliness groups in terms of alienation and insignificant difference between high
and low loneliness groups in terms of quality of life.
INTRODUCTION
The words ‘lonely’ or ‘loneliness’ have been given both objective and subjective meanings in their common
everyday usage. They are often used in the mass media to refer to isolation, aloneness, solitude or social
dysfunction. However, through their broad and wide-ranging use the words have lost their specificity.
Loneliness also has various meanings for researchers working in the field of loneliness, and it has further
meanings or explanations by clinicians working with the lonely. Such diverse use of the language does not
portray the distinction between loneliness caused by being alone and loneliness caused by the symbolic or
emotional absence of other people.
Alienation as a central construct in their psychology, pointing to a separation of the individual from the real or
deeper self due to factors of conformity and pressures found, for example, in organisations. In this sense,
alienation can be seen as a crisis of personal identity in which there is tension between the inner or ‘true’ self
and the demands of modern organisational life.
WHO has defined quality of life as “An individual’s perceptions of their positions in life in the context of the culture and value system in which
they live and in relation to their goals, expectations, standards and concerns. It is a broad ranging concept
affected in a complex way by the person’s physical health, psychological state, and level of independence,
social relationships, and their relationship to salient features of their environment.”
OBJECTIVE
To examine the difference between high loneliness group and low loneliness group in terms of alienation and
quality of life.
HYPOTHESES
[1] There would be a significant difference between high loneliness and low loneliness in terms of
alienation.
[2] There would be a significant difference between high loneliness and low loneliness in term of quality
of life.
1
M.A. Student, Department of Psychology, Banasthali Vidyapith
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SAMPLE
A random sample of 100 college going female students, in the age range of 18 to 22 years, residing in
Banasthali Vidyapith, was taken. Since Banasthali Vidyapith is a women university, the sample consists of
girls only. Random selection of participants was done by using Tippett’s Table.
MEASURES
Loneliness questionnaire (2004). This questionnaire was developed by Hughes, Mary ,Linda Waite Louise
Hawkley and John Cacioppo .Participants responded to 3 items on the likert scale ranging from 1 never to 5
all of the time the reliability of the questionnaire is .(0.72 ) and the validity is (0.72).
Quality of life questionnaire (1996). This questionnaire was developed by WHO Participants responded to 26
items on the likert scale reliability of the questionnaire is (.8) and the validity is (.7).
Alienation questionnaire (1988). This questionnaire was developed by Dr. R. R. Sharma. Participants
responded to 54 items on the likert scale ranging from 1 agree to 0 disagree the reliability of the questionnaire
is (.84) and the validity is (.07).
PROCEDURE
RESULTS
Table 1 showing Co relational matrix between variables
.
Table 1 showing the co relations matrix of all the variables under study. Loneliness is significantly positively
related with alienation [r=.279, p<.05]
Table 1 showing the co relations matrix of all the variables under study. Alienation is insignificantly positively
related with quality of life [r=.161, p>.05.]
Table 1 showing the co relations matrix of all the variables under study. Quality of life is insignificantly
positively related with loneliness [r=.85, p>.05]
Table 2 showing t- test difference between high loneliness and low loneliness groups for alienation.
LONELINESS
mean
df
t
Sig.
High
21.8723
98
2.074
0.041
Low
18.2264
Perusal of table 2 exhibits the value of t which is 2.07 significantly at 0.04 levels. This means that the high
loneliness group differs significantly with low loneliness group in terms of alienation. In other words, high
loneliness group feels more alienation in comparison low loneliness group. The average scores of sample with
high loneliness group is 21.87 and for the low loneliness group is 18.22. Since the mean of high loneliness
group is more than the mean of low loneliness group, so, it can be concluded that high loneliness group is more
alienated than low loneliness group.
Thus the hypothesis is accepted.
Table 3 showing t- test difference between high loneliness and low loneliness groups for quality of life.
LONELINESS
mean
df
T
Sig.
High
92.21
98
1.867
0.065
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Low
97.07
Perusal of table 3 exhibits the value of t which is 1.86 significantly at 0.06 levels. This means that the high
loneliness group differs significantly with low loneliness group in terms of quality of life. In other words, high
loneliness group feels more quality of life in comparison low loneliness group. The average scores of sample
with high loneliness group is 92.21 and for the low loneliness group is 97.07. Since the mean of high loneliness
group is more than the mean of low loneliness group, so, it can be concluded that high loneliness group posses
good quality of life than low loneliness group.
Thus the hypothesis is rejected.
DISCUSSION
In today’s scenario, people like to interact with each other but at other times did not like to interact with others.
When people are not interested in communicating with each other, for any reasons, they usually detach
themselves from the surroundings. They remain indifferent to their immediate surroundings. People generally
withdraw from their environment when they feel loneliness. Loneliness is the happiness that is felt by someone
because they do not have any friend or anyone to talk to.
Studies on loneliness and quality of life are skimpy. Still previous studies showed correlation between
loneliness and quality of life (O Luanaigh & Lawlor, 2008). But finding of the present study is antipode to the
results of the previous studies. Finding states that there is no significant difference in the quality of life people
who are high on loneliness and those who are low on loneliness. The probable reason could be that both
loneliness and quality of life is the personal choice of an individual. It is not a mental state of a person which
is generally forced or imposed by the stressful situation of life. Therefore loneliness and quality of life is
personal selection, which varies from one individual to another. So this reflection of personal choice exhibits
the variance in setting and evaluation of quality of life. Thus it could be inferred that there are other factors
which could influence quality of life apart from loneliness. In nutshell, quality of life could be a moderating
variable in loneliness but not the sole contributor.
LIMITATIONS
[1] This study is conducted on females only.
[2] The sample was taken from Banasthali Vidyapith only.
[3] It is conducted on a small group.
SUGGESTIONS
[1]
[2]
[3]
[4]
Since this study is conducted on females, it could be conducted on males also.
Sample from others institutes could incorporate in the study to be conducted in future.
This study could be conducted on large sample.
Other variables like privacy, isolation, personal space along with Loneliness, Quality of life and
Alienation.
IMPLICATION OF THE STUDY
Earlier the terms, loneliness and alienation were used interchangeably. But as the time lapsed and more
researches were done, the distinction between the two terms was made clear. The findings of this research
work would be of great help as it contributes to the society in general. In the past literature, it was seen that
loneliness and quality of life are directly affected. In the present study, the results are not in line with the past
literature. Loneliness is the moderating or mediating factor in the quality of life led by the people. This provides
future line of research work to various researchers.
REFERENCE
[1] Diener, e. and Suh, S. (1997). Measuring quality of life: economic, social and subjective indicators. Social Indicators
Research. 40: pp. 189-216.
[2] Kekic, L. (2005). The world’s best country. The Economist. Printed in The World in 2005. Retrieved November 29, 2007
from
[3] Legge, K. (1995). Human Resource Management: Rhetoric and Realities. London: Macmillan.
[4] Legge, K. (2001). Silver Bullet or Spent round? Assessing the Meaning of ‘High Commitment Management’/Performance
Relationship. In J. Storey, (Ed.), Human Resource Management: A Critical Text. 2nd Edn., London: Thomson Learning.
[5] (O Luanaigh & Lawlor, 2008). A Further Examination of Managerial Burnout: Toward an Integrated Model. Journal of
Organizational Behaviour, 14: 3-20.
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SOCIETY AND EDUCATION
ABSTRACT
Dr. Seeme Mahmood 1
It has now become a widely accepted view that society must be responsible for education and that each
particular society must determine the aims and methods of its own education. In practice, ‘society usually
means a country or state, and the responsibility for education then becomes the concern of the
government of that country. The present generation recognizes that education is the means by which the
rising generation can be taught the knowledge and the values which society has come to respect and
which society therefore wishes to see handed on. Through education, society expects to transmit to the
new generation its own culture patterns.
NEEDS OF SOCIETY
The organization of human beings into societies has been going on for a very long time, all over the world,
and in every race. The organization of society was designed primarily for the mutual protection and greater
security of the members. People realized very early that, by banding themselves together for their common
good, they were stronger in everyway and therefore less at the mercy of whatever might cause harm. Quite
early in its history, society tended to bring into being a system of grading, both of the work to be done and of
the responsibility to be shouldered. This grading eventually concerned the people themselves and the privileges
bestowed. Such a system of grading recognized that individual people differed from one another in their natural
endowments, in their capacity to learn skills, and in their ability and desire to render service. Once this
tendency of grading of society was introduced it became entrenched on hereditary grounds. Each individual
wished to hold for his heirs what he had acquired for himself. Although early grading may have been made on
grounds of ability alone, much social grading eventually came to be on the basis of birth and family. In some
societies this hereditary system became so deeply rooted that it was often difficult for an individual to change
his social position. Another feature of a developing society is the tendency to accord social status to certain
occupations and to regard other occupations as menial and undignified. Modern society has become
exceedingly complicated and there are a great variety of jobs that now have to be done. But modern society
can draw on a great variety of members, who have widely differing abilities and interests, and who can be
trained for widely differing jobs. All individuals can hope to succeed in finding jobs for which they are
equipped and which bring full satisfaction. At this stage at is worth considering briefly the sent of jobs which
have to be done in society. The following list is by no means complete, but it does indicate the range of interest.
 Producers of food-farmers, gardeners, fisherman etc.
 Producers of essential commodities – house- builders, furniture makers, clothing manufacture etc.
 Producers of useful goods.
 Producers of luxury goods.
 People who provide protection.
 People who undertake government and administrative jobs
 People who cater for physical, mental and spiritual health.
 People concerned in public service.
 People who cater for leisure and enjoyment.
We must not forget the place of Mothers in society. The mother of the family may fall into no specific category
of employment, but her influence on the rising generation is great in particular we must draw attention to the
change position of women, to the idea of equality of opportunity, to the new role of education, and to the
conception of welfare society. Society, which has sometimes during the course of history given the impression
of being stable, even static, is in fluid, as the past half-century has strikingly demonstrated. As society changes
its form, so its function and needs change and these, in their turn make demands on education.
AIMS OF EDUCATION
1
Asst. Professor of English, Institute for Excellence in Higher Education, Bhopal (MP)
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If education is to achieve all that is expected of it its aims and methods should be related to the nature of the
society in which it takes place. In other words, education should not be regarded as a marketable commodity,
which once standardized and branded, can be exported anywhere. It is a vital force which must be fashioned
to its own society. What has been evolved as a good education in one society and found by experience to be
good there, is not necessarily wholly good elsewhere.
INDIVIDUAL IN SOCIETY
A democratic society must clearly protect itself against undemocratic methods which attempt to undermine its
own security. It may has be necessary for a democratic society to limit the freedom of its members should he
be encouraged to develop such ability and aptitude as he has, according to his personal interest and to satisfy
has own personal ends. Should he be persuaded to think of himself in the service of his society according to
the dictates of his society and regardless of personal desires? It should be mans constant endeavour to banish
from the earth such evils as ignorance, want, disease, unemployment and squalor. It should be everyone’s right
to share in such human rights as the freedom to worship as ones wishes, to speak ones mind freely and to join
with ones fellows for lawful purposes. Though people are not born with equal capabilities they should all have
the right to develop their own gifts fully.
A rising generation which does not think deeply about the welfare of society, and which does not concern itself
with the machinery of good government is not consistent with a democratic way of life.
WORK AND LEISURE
Education must necessarily be concerned with preparing people for leading a full life as responsible and
citizens and must therefore concern itself with equipping people both to earn lieu brings and to use their leisure.
Formal education must lay liberal foundations and indicate the ways in which people, who are able and willing
to undergo any specialized braining required, can find satisfaction both in the process of earning their brings
and in occupying their leisure beneficially. The education of the classroom is not intended to be an end in
itself. It merely lays foundation on which later building can take place for education is a continuing process.
Hence these foundation must be broad and stable and that they must be suitable for whatever the particular
individual is likely to want to build. Equality of opportunity would ensure that only those who have the
necessary ability and aptitude proceed to specific training. It is a waste of manpower to attempt to train
someone for work for which he is not fitted.
PHYSICAL MENTAL, EMOTIONAL, MORAL AND SPIRITUAL VALUES
Educations greatest role is to remove ignorance and superstition and to bring about an awareness in an
individual. The major task of education is to develop the mental faculties of the child once parents hand their
children over to the care of a school. There is, in effect, an implied bargain between parents and teachers. The
bargain is that children shall be educated, which usually means that children will be required to exercise their
minds in the process of learning whatever is prescribed for them. The school community is a social group
capable of influencing for good or ill the children in its care. The school will help to determine the values
which the children build into their loves. In any assessment of human values, the influence of religion cannot
be ignored, for through the ages, religion has dominated the thoughts and loves of people. This opens up
important issue. Are the values which have come to mean so much to humanity in any way dependent upon
religion? Can they possible continue to survive in the absence of religion? Should the influence of tradition be
removed from education? Education if it were to serve society, cannot ignore the values which a society holds.
A modern society holds. A modern society will almost certainly set great store by its achievements in the
following field: provision for the physical, mental and emotional development of its people.
 the evolution of a social organization to satisfy current needs.
 the development of a political organization to satisfy national pride and consonant with current needs
and ideals.
 development of an ever-expanding economy of facilitate material progress.
 upholding moral values especially those which contribute to the safety and security of societ.
 fostering aesthetic appreciation and growth of a culture which can be expected to satisfy its own
people.
 provision for the leligions life of its people.
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Values in all these spheres can be regarded as applying at two distinct levels namely. Values formulated by
society and values accepted by individuals. Hence it can be concluded that those resonsible for education
cannot be content merely to await chance developments in human behavior, but they must concern themsleves
with the question of motivation.
REFERENCES
[1] Bereiter, Carl. 2002. Education and mind in the knowledge age. Mahwah, NJ: Lawrence Erlbaum Associates.
[2] Brown, J.S., Collins, A., & Duguid, P. (1989). Situated cognition and the culture of learning. Educational
Researcher 18 (1).
[3] Cobb, T. (1997a). From concord to lexicon: Development and test of a corpus-based lexical tutor. Concordia
University: Unpublished doctoral dissertation.
[4] Wallace M 1980 Study skills in English Cambridge University press
[5] Natraj Sulbha 2005 Developing communication skillsVnagarCharututar Vidhya Mandal
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CAREER ASPIRATIONS AND WELLBEING OF HIGHER
SECONDARY STUDENTS
ABSTRACT
Mrs Shraddha Dhiwal1
Aspiration is fundamental for the experience of success and failure, and ultimately changes by success
and failure. Career refers to movement (of an object or person) through time and (social) space. Career
as movement through space is located in social space whether constructed as social structure or a network
of relationships. Parents approve or disapprove of particular action, they suggest goals and encourage
aspirations to which the child responds. Difference in career aspiration between parent and child affects
wellbeing of child.
The study has been conducted on students studying in XIth Std. in the city , Delhi on career choices of
students and their perception on career choices made for them by their parents and its effect on wellbeing
of students. The finding of study shows that in respect of 26 careers, there is significant difference
between career choices of students and their perception of career choices made by parents for them.
Study also points out that difference in career choices between students and their parents affects their
wellbeing adversely.
KEYWORDS: aspiration, career, career choice, wellbeing
Global educational challenges, high level of competition, economic and social factors of today made very deep
impact on our students. Sometimes they are involved in bullying , substance abuse, violence, indiscipline,
and experience high level of anxiety, frustrations, fear, depression etc. Though we are spending more money
on education than at any other time in history, the results have been less than satisfying. Some critical element
is missing from the endless list of goals, objectives, test scores... something that holds the greatest educational
promise, that something is the ‘student’. Understanding and valuing the student, protecting his/her ‘self’ is
crucial in attaining goal of education.
Child is parents own extension. Most of the abilities, habits, attitudes, likes and dislikes are similar to that of
the parents. It needs to be identified and understood. Undue insistence on foreign abilities leads to stress on
student adequate space is required to be given to him/her to express views, abilities, competencies and interests
so that he/she can put in his/her efforts to excel self to the optimum.
Aspirations play important role in career decisions because they reflect the goals and intentions that influence
individuals towards a particular course of action. Aspirations develop over time. Throughout childhood and
adulthood, individuals dream of places they would like to go, things they would like to experience, and ideas
they would like to test. As young children grow their vocational preferences begin to take realistic shapes.
Individual characteristics influence their vocational preferences. Aspirations are components of many career
decision models because they represent the commitment an individual makes towards a particular course of
action, and they also serve as the basis for feeling of success, a facilitator of career decisions.
An understanding of the developmental nature of aspirations and its effect on career decisions is important to
individual and organization. A clear understanding of one’s aspirations will lead to more successful career
decisions.
In Education, construct of career is used in addressing the transition from school to work. Constructs focusing
on informed, realistic decision making are used for career guidance in schools and higher education.
In the domain of public policy, career is primarily used to modify terms such as education and guidance. Faced
with the need for new skills, adaptability, and redeployment in their workforces and with the problem of
unemployment and social exclusion, government today are concerned with developing human capital.
1
B.Sc., M.A., M.Ed., SET (MH), CIG.; Asst. Professor, Department of Educational Psychology & Foundation of
Education, National Council of Educational Research & Training, New Delhi
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Understanding and regulating of emotions depends crucially on social engagement. Parents early reference to
emotion is focused on the childs feelings, including physical discomforts, arousal, likes ,dislikes, often with
the apparent intention of guiding or controlling the child’s affective state. Parents reaction to child’s emotional
displays may inform her or him what is socially acceptable ,and how to define self. Important emotional
constraints upon self presentation, such as pride, shame, and guilt are intimately related to the acquisition of
social norms ,and the awareness that the other people evaluate behavior .By the end of third year a child learns
to lable own emotions and those of others. Learning how to define and regulate the emotional facets of the self
is closely interwoven with the social context. Others perception of the self affects us but does not shape us.
The child receives his first notion about his self-worth from his parents. They are his chief link to the external
world throughout his early years, the mirrors in which he sees. Every child is involved in performing something
or the other all the time. It shows that is has ability, every child has different ability. Parents do not wish to
burden the child with false guilt, weighed down with imaginary shame or lacking in self esteem but most of
the parents are unaware about the psychological development processes and individual differences. Therefore
children are compared all the time either with neighbor’s child or relative's child. Parents are also unaware of
various options available for learning as well as career opportunities. Therefore the child is insisted upon
pursuing a particular stream or career which parents could not follow when they were young because of various
economic and geographical constraints, and now they are able to provide that support to the child or because
somebody else's son/daughter is making particular career, therefore he/she also has to become the same. This
insistence for better performance, selection of particular stream, career and comparison causes tremendous
stress among the student. They are forced to do better on the abilities in which they are weak, less efforts are
made to create an interest in the field. This causes frustration among the students.
One of the major contributing factor is parental aspiration. Parents have every right to think about their
children’s future however if aspiration is supportive for the students development and not causing any harmful
effect then it is good enough, but if it is impeding the growth of the student, causing frustration, anger, stress
and mental imbalance then it needs to be checked at the right time well in advance particularly if it is leading
emotional discomfort.
OBJECTIVE
The main objective of the study is to find out Parental influence on career aspirations and well-being among
higher secondary students.
REVIEW OF THE STUDY
The family is the basic and most important unit of society. The psychological well being of the family
determines the function and well being of the society in general and of its children in particular. Parents
influence the physical, emotional, social and cognitive growth of their children, and they are the key figures
in developing their children's personality and self esteem.
The evidence has demonstrated that parenting has an enormous and relatively permanent impact upon the
developing personality and future destiny of the child. In parent child relationship, parents are assumed to
possess superior knowledge and have the ability to maintain complete control and power over them. The model
provided by their own parents is inextricably woven in to their personalities. It is well accepted psychological
fact that the unresolved issues of childhood continue to surface in different forms as the child grows, and that
these can create serious problems at adolescence and later in life
The parent's aspiration or his success in school, active participation with peers and choice of career are
unconsiously transmitted to the child. his ideas and priorities are engendered as parents assume the attitiude of
society and insist upon his performance. Thus the young child absorbs and internalizes the rules and values as
defined by contemporary society. If undue aspiration is placed before the child, it experiences guilt more than
it can tolerate, then the child goes into two directions, unable to live with the guilt, he may rebel and find a
refuge in drugs, delinquency or other forms of anti-social behaviour. Or the child may grow up loaded with
heavy burden of guilt; deeply convinced that he is a bad undeserving person.
The relationships between parental monitoring and peer orientation was in the direction opposite to that
observed for parental strictness and decision making early adolescents who perceived high levels of monitoring
of their behaviour tended to be less extremely oriented toward peers. Parental strictness and decision-making
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opportunity are often highlighted as critical dimensions in parent-child relationships during early adolescence
(eg. Baumrind,1991; Eccles et al , 1991; Cmtevant& Cooper, 1986; youniss&Smollar, 1983).
As children enter early adolescence they desire more mutual relationships that involve less parental domination
than previously during childhood (Youniss&Smollar, 1983). They also desire increased opportunities to
participate in making decisions that affect their lives ( Baumring, 1991).
During children's development, involvement in both parent-child and peer relationship provide the optimal
mix of needed developmental experiences (Hartup, 1989). However as children enter adolescence these
relationships must adjust and change to fit children's changing developmental needs. This is especially critical
in parent-child relationships, in which a lack of such a fit can be associated with early adolescents becoming
inordinately oriented toward peers.
In the constitution of the World Health Organisation health is defined as “a state of complete physical, mental
and social well-being and not merely the absence of disease or infirmity” (WHO,1948). More recently, the
WHO has defined positive mental health as “a state of well-being in which the individual realizes his or her
own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to
make a contribution to his or her community” (WHO, 2001). Psychological well-being is about lives going
well. It is the combination of feeling good and functioning effectively. Sustainable well-being does not require
individuals to feel good all the time; the experience of painful emotions (e.g. disappointment, failure, grief) is
a normal part of life, and being able to manage these negative or painful emotions is essential for long-term
well-being. Psychological well-being is, however, compromised when negative emotions are extreme or very
long lasting and interfere with a person’s ability to function in his or her daily life. The concept of feeling good
incorporates not only the positive emotions of happiness and contentment, but also such emotions as interest,
engagement, confidence, and affection. The concept of functioning effectively (in a psychological sense)
involves the development of one’s potential, having some control over one’s life, having a sense of purpose
(e.g. working towards valued goals), and experiencing positive relationships.
Chevalier and Feinstein (2006) found that men with a high level of education were more likely to be depressed
than those with less education. They suggest that the increase in depression associated with the highest level
of education may be an indication of the job-related stress of occupations requiring a degree. The reverse
gradient for education could also reflect the role of education in raising expectations which may not have been
fulfilled. Thus, raising educational attainment does not of itself guarantee that well-being will be improved.
The recent UNICEF report (2007) found that children’s well-being across a range of measures was worst in
the most unequal countries (UK and US). It should be noted that income inequality is at a historically high
level in the UK (Orton& Rowlingson, 2007), with no evidence that this situation is changing. On the other
hand, the causal mechanisms are not well understood; the most unequal countries also appear to be the most
materialistic and to have the most individualistic (rather than communitarian) values, and these characteristics
are known to be associated with lower psychological well-being (Kasser,2002).
METHODOLOGY
The objective of the paper is to present selected issues of career and wellbeing from the issues in respect of
which research is in progress.
Locale of Study & Sample
The research paper is based on pilot study conducted on XI standard students studying in higher secondary
school belonging to an autonomous organization of government of India new Delhi. The Higher Secondary
School is imparting teaching to students in three streams i.e. humanities, commerce & science. There are 170
students studying in the afternoon session in standard XI. By using blind fold systems a stream of study was
selected by draw and questionnaire were administered on them. Out of 42 commerce students sample of 20
students have been considered sufficient for the present study. While selecting sample students weightage has
been given to gender and communities based on socio- economic conditions.
Method
Survey method has been used to collect primary data.
Tools used
The questionnaire has been prepared on various aspects of career aspirations of students and career choices
made for them by their parents. The present paper discusses five selected questions on academic stream and
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career choice of student, as well as academic stream & career choice made for them by their parent and effect
on wellbeing of students arising out of difference in career choice of student & parent.
The attributes of academic streams such as Science, Commerce, Humanities, Vocational and Any other has
been taken into account for determining choices of student and parent.
To measure career aspiration of students and aspirations of their parent about career from them, students were
asked to give three career choices best for them and similarly three career choices made by parents. To facilitate
career choice list of total 40 careers in 11 different areas was also provided in case they need to know before
determining career choice.
To determine wellbeing of students affecting on account of difference in career choices selected by student
and career choice made for them by their parents, 10 attributes were selected which included happiness,
anxiety, disturbance, depression, anger, tension, quarrel, stress, sickness and feeling of lowness.
INTERPRETATION AND ANALYSIS OF DATA
The primary data has been analysed and interpreted after tabulating data collected after administration of
questionnaire on the aspects given below:[1] Socio-economic profile of sampled students
[2] Academic choice of student and parent
[3] Career aspiration of student and parent
[4] Effect of conflict of career choice & expection of student & parent on wellbeing
[1] Socio-economic profile of sampled students
The distribution of number of sampled students is as given below in the table no. 1:
Table no. 1: Statement showing distribution of sample students by communities on the socio-economic criteria.
Community
Sampled students
General
14
Schedule Caste
3
Schedule Tribe
1
Other
2
Total
20
Out of 20 sampled students,25%students family income is below Rs.20000/-,40% are in the group Rs 20000/to Rs.40000/-,20% are in the group Rs.60000/- to Rs.80000/and5% in Rs.60000/- to Rs.80000/-and 10%
students were not aware about their monthly family income. The statement showing distribution of income
among sampled students is given in Table no. 2
Monthly Income
upto Rs. 20000
Rs.20000 to Rs 40000
Rs.40000 to Rs 60000
Rs 60000 to Rs 80000
Rs. 80000 & above
Students
25%
40%
20%
5%
0%
[2] Academic choice of student and parent
The aspiration for career begins from the selection of stream of study. The selection of academic stream plays
significant role in deciding occupational career. While selecting stream of study besides one’s interest and
ambition,expectation of parents equally affects on the considerations. It has been found that students choice
and their parents choice for study are different. The table no. 3 shows first, second and third choice made by
student and parent in respect of stream of studies such as science, humanities, commerce, vocational and any
other. It shows that Ninety percent students studying in commerce class had commerce
SCIENCE
HUMANITIES
COMMERCE
CHOICE 1
STUDENTS
5%
5%
90%
PARENTS
45%
10%
45%
VOCATIONAL
0%
0%
Table no. 3
CHOICE 2
STUDENTS PARENTS
30%
5%
0%
0%
10%
45%
0%
10%
CHOICE 3
STUDENTS
0%
10%
0%
PARENTS
5%
15%
0%
0%
0%
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ANY OTHER
0%
100%
0%
100%
10%
50%
0%
60%
15%
25%
5%
25%
stream as their first choice while 45% parents shown preference for science and 45% parents had humanities
as their first choice.5% students show first priority for science and 5%for humanities as their first choice.
[3] Career aspiration of student and parent
The study shows that male students have shown career aspirations in 9 careers. Whereas female students have
shown interested in 16 careers and according to them parents expect them to pursue 22 careers. The top three
careers selected by male student, female student and expectation of their parents have been arrived after taking
into account total choices made by them. The table given below shows top three career preferred by male
students, female students and expectation of their parents.
Male
Accountant
Secretary
Army
First
Second
Third
Table No. 4
Top Three Career Choices
Student
Female
Accountant
Chartered Accountant
Designer
Parent
Lawyer
Teacher
Table No. 5
Career choice of students and their perception of career choice for them by parents.
FIRST CAREER CHOICE OF MALE STUDENT & PARENT
CAREERS
PARENT
STUDENT(M)
Accountant
0%
30%
Businessman
5%
5%
15%
0%
Economist
Judge
5%
5%
0%
0%
Lawyer
10%
0%
Police Officer
0%
5%
Secretary
0%
5%
Teacher
5%
0%
Except the career as businessman there is total discord between parents choice and students choice of
career.90% students have priority for becoming an accountant while not a single parent expect them to be an
accountant, some of the parents expect them(15%) to be chartered accountant. 10% parents expect their
children to be lawyers, while 5% each expect them to be an economist, judge or teacher, and 5% students each
are interested in becoming police officer or secretary.
Table No. 6
FIRST CAREER CHOICE OF FEMALE STUDENTS & PARENT
1
2
3
4
5
6
7
8
9
10
11
CAREERS
Air Hostess
Banking
Civil Engineer
Dancer
Designer
Doctor
Economist
Financial Analyst
IAS
Police Officer
PARENT
0%
5%
10%
5%
5%
0%
15%
5%
0%
0%
5%
STUDENT(Female)
10%
10%
10%
0%
5%
5%
0%
0%
10%
10%
5%
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12
13
Statician
Teacher
5%
10%
0%
10%
Fifteen percent parents expect their daughters to be doctors and 5%as civil engineers, while 10% expect them
to become chartered accountant, female students have varied interest in making career as an airhostess, dancer,
designer, financial analyst, IAS officer, Police officer as well as a teacher. The finding show that out of 13
careers only in respect of three careers choices of female students are similar to the expectations of their
parents.
[4] Effect of Conflict of Career Choice & Expection of Student & Parent on Wellbeing
Students were asked question on wellbeing. They were requested give their responses on “ How do you feel
when there is conflict with parents on career choice?”. The responses given by them were measured on 5 point
Likert scale on 10 parameters of wellbeing which included happiness, anxiety, disturbance, depression, anger,
tension, quarrel, stress, sickness and feeling of lowness.
Wellbeing of Students
80
70
60
50
40
Students (frequency)
30
20
10
0
Happy
With
Parent
Choice
Anxious
Depressed
Disturbed
Angry
Vi. It Leads
To
Quarrels
Vii. It
Create
Tension
Viii. It
Become
Stressful
Ix. I Fall
Sick
Frequently
X. I Feel
Low
The analysis of data on effect of conflict on career choice between student and parent shows that:1. Students shown variance in their responses from completely happy over parents choice of career for
them to serious consequences of psychological disturbances.
2. Individual scores on students responses ranged from Minimum 4 to maximum 38.
3. Even though 75% students who considered themselves happy with their parent choice, the analysis
reveals that only 30% students are completely happy with their parents choice. They have not
expressed any kind of unwellbeing. Whereas 45% students have given mixed responses i.e. they are
happy with their parents choice and at the same time they are also experiencing unwellbeing.
4. Majority of the students responded to feeling of disturbance followed by creating a tension ,feeling
low and getting angry.
5. The conflicting career choices between student and parent is resulting into unwellbeing in respect of
following parameters:a. Disturbed 45%
b. Tension 40%
c. Feeling low & Getting angry each 37%
6. It is observed that significant number of students are also suffering from other parameters such as
anxiety, anger, depression, stress and frequently falling sick on account of conflict on career choice
between them and parent.
CONCLUSIONS
The finding of study reveals that there is a difference in career aspiration of students and expectation of their
parents on career choice.
Parental influence on career aspiration affects wellbeing of students
LIMITATION OF STUDY
The study is prima facie applicable to selected students of the school. Further study is in progress.
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SUGGESTIONS
Psychological well-being is associated with flexible and creative thinking, pro-social behaviour, and good
physical health, an adverse early environment can produce lifelong impairments in behavior.Identification and
management of the psychological well-being of children is everybody’s responsibility and no longer solely the
work of a counsellor. People working with children a have responsibility for identifying possible difficulties
at an earlier stage and making available a required support. Schools are well placed to recognize and identify
potential difficulties and intervene early. Therefore schools could be eguiped with the environment where
staff/teachers can closely monitor ,adapt and organize specific programmes.There is a danger that terminology
such as “mental’or ‘psychiatric disorder” may be stigmatizing and suggests that the problem is entirely located
within the individual rather than looking more systematically at issues such as poverty, employement and
access to services. Disorder /problem become more complex and resistant to intervention with time and
therefore early effective interventions are necessary. Children with mild and moderate range of difficulties can
be solved easily if identified early.
REFERENCES
[1] Borba, Esteem Builders – A K – B Self Esteem Curriculum for Improving Student Achievement, Behaviour and
Social Climate, pro-ed – An International Publisher (2003)
[2] Fuligni J. Andrew and Eccles S. Jacquelynne S. Eccles, Perceived Parent-Child Relationships and Early
Adolescents’ Orientation Towards Peers, Development Psychology 1993, Vol.29, No. 4, 622-632
[3] Lang A. Frieda Ed. D., Parent Group Counselling- A Counselor’s Handbook and Practical Guide, Lexington
Books, D.C. Heath and Company/Lexington, Massachusetts/Toronto (1988).
[4] Kevin Durkin, Developmental Social Psychology- From Infancy to Old Age (1995)
[5] Blackwell publishers Ltd.U.K
[6] J.L.Swanson and N.A.Fouad, Career Theory and Practice –Learning Through Case Studies 2010 Sage
Publication
[7] J.Eenhaus and G.Callanan, Encyclopedia of Career Development, 2006, Sage Publication
[8] British Journal of Educational Psychology (2006) vol.76,pg.41-55.
[9] Felicia A Huppert Well-being Institute, University of Cambridge, UK © 2009 The Author. Journal compilation
© 2009 International Association of Applied Psychology.
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DO INTELLIGENT PEOPLE MAKE THE ORGANIZATION
INTELLIGENT? ORGANIZATIONAL INTELLIGENCE: A
PERSPECTIVE
ABSTRACT
Akriti Srivastava1
The term "intelligence", whose use was originally limited to considering ability differences in human
beings, has evolved over the years to include a broader spectrum of applications and here in this study is
extended further to cover its analog in organizations. The defined variables in tests of human intelligence
or mental ability for human Intelligence Quotient (IQ) models are measures of an individual’s problem
solving ability and potential verbal, mathematical, spatial, memory and reasoning skills. A great deal of
effort has been devoted to studies in this area and substantial progress has been achieved, considerably
advancing our understanding and measurement of human intelligence since the early part of the last
century. This research into human intelligence has enabled other industries to implement human-like
control procedures in fields such as automation and decision-making, resulting in innovations that are
now part of our everyday lives such as artificial intelligence, machine intelligence, business intelligence
and organizational intelligence. Organizational intelligence (OI) is a critical capability of organizations
(Leidner and Elam, 1995; Glynn, 1996; Akgün et al., 2003). As the concept of OI originated from naïve
analogy with the individual intelligence. This concept was first introduced by Wilensky (1967). He defined
it as, “The problem of gathering, processing, interpreting, and communicating the technical and political
information needed in the decision-making process.” The objective of this study is to understand the
organizational intelligence with a comparison made to individual intelligence ability. And to see whether
intelligent people working together in an organization make the organization intelligent or not, for this
the data was collected from 304 scientists of an R&D organization. And the collective organizational
intelligence was assessed by taking out the Organizational Intelligence Quotient (OIQ).
KEYWORDS: Individual intelligence, organizational intelligence, organizational intelligence quotient
In today’s world, organizations confront fast and astonishing changes. Their survival will depend on adaptation
capability they will perform, to comply with those changes. As a result of this situation, the management
concept with its process acquires a different character, which is because of technological progression and
globalization.
In this age, to consistently sustain the importance, knowledge concept of the organization is changing fast. In
organizations, shared individual knowledge transform into organizational information. Effective application
of organizational knowledge forms intelligent organizations progressively. However, in order to achieve these,
an intuition of making use of knowledge in creative way is required. Therefore, to survive in the demanding
and competitive environment, organizations are needed to be intelligent in today’s world. Organization is alive
and, for being strived needs continuous information. While organization in the past have been viewed as
compilations of tasks, products, employees, profit and processes, today they are increasingly seen as intelligent
systems designed to manage knowledge. Therefore, measuring ability of learning, finding and logical thinking
is necessary for evaluation and performance improvement.
In human high turbulent world, those men are successful and efficient who possess a high IQ. Undoubtedly,
men can overcome their life problems by utilizing their given intelligence. Certainly, it is true in organizational
world particularly in modern age in which organizations have become more complicated and their survival has
become more difficult due to improvements in sciences and industries as well as the emergence of new needs
and challenges overtime. Now, this question arises how can we prepare ourselves to face with this uncertainty?
Obviously, those organizations are successful which can utilize their employees' thinking power effectively.
1
Banasthali University, Department of Psychology, Banasthali University, Tonk, Rajasthan- 304022
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As a fascinating concept and intriguing research area, “intelligence” finds strong appeal in many disciplines
outside of individual and cognitive psychology (Sternberg and Kaufman, 1998). One of the disciplines that
provoked increased interest in the importance of intelligence is the management and organization development
literature (Glynn, 1996; March, 1999; Stalinski, 2004). Even if we disregard the entire literature in which
organizational intelligence was supposedly aggregated (Kurzman and Owens, 2002), the term is still
ambiguous in the context of organizational development scholarship. This is true because there is a lack of a
unified theory of intelligence in organizational settings as noted by the numerous and fragmented perspectives
and ideas of researchers in the field (Glynn, 1996).
In this globalised world, when the environment is so turbulent what the organizations are needed to do is, they
need to be more intelligent in order to have competitive advantage over their competitors. Though the concept
“organizational intelligence” was introduced in 1967 but not much has been done in this area till now. And
especially, in India no such significant work has come into the light. Therefore, a strong need was felt to do
the study in this area as it seems to be very important in today’s world.
The studies which have been done on organizational intelligence are very less in numbers. And most of the
works are not empirically supported. Halal (1997) in his work stated that organizational intelligence leads to
organizational performance. After the review of the literature it was found out that organizational intelligence
is the factor which promotes knowledge management, creativity, innovativeness, performance and it helps
organization in achieving its goal.
The concept of organizational intelligence (OI)
The concept of OI originated from naïve analogy with the individual intelligence. This concept was first
introduced by Wilensky (1967). He defined it as,” The problem of gathering, processing, interpreting, and
communicating the technical and political information needed in the decision-making process “.
Albrecht’s Concept of Organizational Intelligence
Albrecht (2003) in his book, “The Power of Minds at Work: Organizational Intelligence in Action”, defined
organizational intelligence as, the capacity of an enterprise to mobilize all of its available brain power, and to
focus that brain power on achieving its mission. He quoted from Gardner’s study that as human beings have
more than one kind of intelligence, in the same way organizations have - or lack - a number of intelligences,
or dimensions of competence. Indeed, Albrecht (2003) observed a corresponding complement of some seven
dimensions those of which are as follows:Strategic vision: - Every enterprise needs a theory — a concept, an organizing principle, a definition of the
destiny it seeks to fulfill. Its leaders must ask and answer questions like: Who are we? Why do we exist? What
is the primary value proposition that lies at the core of our existence? Why should the world accept, appreciate,
and reward us for what we do? Note that strategic vision refers to the capacity to create, evolve, and express
the purpose of the enterprise and not to any particular vision, strategy, or mission concept in and of itself. The
OI dimension, or trait, of strategic vision presupposes that the leaders can articulate and evolve a success
concept, and that they can reinvent it when and as necessary.
Shared fate: - When all or most of the people involved in the enterprise, including associated stakeholders
like key suppliers and business partners, and in some cases even the families of its members, know what the
mission is, have a sense of common purpose, and understand their individual parts in the algebra of its success,
they can act synergistically to achieve the vision. This sense that "We're all in the same boat" creates a powerful
sense of community and esprit de corps. Conversely, when they have no vision or shared concept of success,
they cannot hope to contribute their individual efforts to steer the boat in the desired direction. Without a sense
of shared fate, the psychological tone of the culture degenerates into a "Look out for number one" spirit.
Appetite for Change. Some organizational cultures, usually led by their executive teams, have become so
firmly set in their ways of operating, thinking, and reacting to the environment that change represents a form
of psychological discomfort or even distress. In others, change represents challenge, opportunity for new and
exciting experiences, and a chance to tackle something new. People in these environments see the need to
reinvent the business model as a welcome and stimulating challenge, and a chance to learn new ways of
succeeding. The appetite for change needs to be big enough to accommodate the kinds of changes called for
in the strategic vision.
Heart. Separate from the element of shared fate, the element of heart involves the willingness to give more
than the standard. Organizational psychologists refer to discretionary effort as the amount of energy the
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members of the organization contribute over and above the level they have "contracted" to provide. In an
enterprise with little or no heart, staff members basically just do their jobs. In an organization with lots of
heart, the leaders have somehow managed to earn a measure of discretionary effort, i.e. the willingness of the
employees to contribute something more than expected, because they identify their success with the success
of the enterprise and they want it to succeed.
Alignment and Congruence. Any group of more than a dozen people will start bumping into one another
without a set of rules to operate by. They must organize themselves for the mission, divide up jobs and
responsibilities, and work out a set of rules for interacting with one another and for dealing with the
environment. Any organizational structure one can imagine will impose limits and constraints as well as
provide for cooperation. It's hard to work intelligently and perform effectively with crazy systems. Sometimes
the organization itself — the configuration of roles, goals, rules, and tools — changes from a solution to a
problem in and of itself. When the design of the organization and its structures, systems, methods, processes,
policies, rules and regulations, and reward systems push people in directions away from the achievement of
the mission, a chiropractic adjustment is in order. Unvoiced policies, norms, values, and expectations also play
a part in shaping human effort either toward or away from the value proposition that justifies the organization's
continued existence. In an intelligent organization the systems, broadly defined, all come together to enable
the people to achieve the mission. Its designers and leaders have eliminated most of the structural
contradictions to the core value proposition, and have promoted the alignment of individual energies toward
the common purpose.
Knowledge Deployment. More and more these days, enterprises succeed or fail based on the effective use of
knowledge, information, and data. Almost every business organization these days depends heavily on the
acquired knowledge, know-how, judgment, wisdom, and shared sense of competency possessed by its people,
as well as the wealth of operational information that flows through its structure every minute. The capacity to
create, transform, organize, share, and apply knowledge is becoming an ever more critical aspect of competing
in complex business environments. Going well beyond the current IT formulas for "knowledge management,"
knowledge deployment deals with the capacity of the culture to make use of its valuable intellectual and
informational resources. In this respect, knowledge deployment probably deserves to be conceived of as an
anthropological proposition rather than a technological or structural one. OI must include the free flow of
knowledge throughout the culture, and the careful balance between the conservation of sensitive information
and the availability of information at key points of need. It must also include support and encouragement for
new ideas, new inventions, and an open-minded questioning of the status quo.
Performance Pressure. It's not enough for executives and managers to be preoccupied with the performance
of the enterprise, i.e. its achievement of identified strategic objectives and tactical outcomes. In the intelligent
organization, everyone owns the performance proposition, i.e. the sense of what has to be achieved and the
belief in the validity of its aims. Leaders can promote and support a sense of performance pressure, but it has
the most impact when it is accepted by all members of the organization as a self-imposed set of mutual
expectations and an operational imperative for shared success. When people hold one another accountable for
their contributions to the mission, a performance culture takes shape, and every new member who joins can
feel the shared sense of imperative.
On mathematical perspectives organizational intelligence is:
Available brain power (the sum of individuals’ IQ) – Entropy (chaos) + Syntropy (synergy).
Entropy: it is the amount of lost brainpower and wasted energy in an organization which acts like an internal
tax.
Syntropy: it can be defined as the coming together of people, ideas, resources, systems, and leadership in such
a way as to fully capitalize on the possibilities of each other.
In a sum, it can be said that entropy denotes the loss of available energy caused by various forms of disorder;
syntropy denotes the gain in energy made possible by the intelligent integration of resources.
Howsoever, for the purpose of this study, OI is defined as the capacity of an organization to mobilize all of its
available brain power, and to focus that brain power on achieving its mission, as it was defined by Albrecht
(2003).
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An organization is regarded as a system of inter subjectively shared meanings sustained through social
interaction (Walsh and Ungson, 1991). Organizational intelligence emerges from those interactions that
constitute the organization. It is embedded in the structured patterns of thought and action in which
organizational members interact and engage (Glynn, 1996). Technologically advanced systems affect
organizational intelligence as well. They enable the development of organizational intelligence (Huber, 1990;
Leidner and Elam, 1995). Thus, organizational intelligence is more than the aggregate intelligence of
organizational members; it is the intelligence of the organization itself as a larger system. An unintelligent
organization can be composed of apparently intelligent people and an intelligent organization can be composed
of relatively unintelligent components (Albrecht, 2003; Kerfoot, 2003). Organizations, as well as people,
display differing degrees of intelligence. Differences among organizations’ intelligences are not related to the
differences among the intelligences of organizations’ members only. Many factors such as organizational
symbols, patterns of interaction, organizational culture, socialization processes and advanced technological
systems influence the differences among organizations’ intelligences.
Intelligence & Organizational Intelligence
The literature on human intelligence will be discussed first because it is fundamental to the whole endeavor.
The term "intelligence", whose use was originally limited to considering ability differences in human beings,
has evolved over the years to include a broader spectrum of applications and here will be extended further to
cover its analog in organizations. The defined variables in tests of human intelligence or mental ability for
human Intelligence Quotient (IQ) models are measures of an individual’s problem solving ability and potential
verbal, mathematical, spatial, memory and reasoning skills. A great deal of effort has been devoted to studies
in this area and substantial progress has been achieved, considerably advancing our understanding and
measurement of human intelligence since the early part of the last century. This research into human
intelligence has enabled other industries to implement human-like control procedures in fields such as
automation and decision-making, resulting in innovations that are now part of our everyday lives such as
artificial intelligence, machine intelligence and business intelligence.
What is ‘Intelligence’?
When it comes to defining intelligence opinions are divided into two major camps. First, according to a report
from a task force established by the Board of Scientific Affairs of the American Psychological Association
(Neisser et al., 1996), the definition of intelligence should take into account both ‘Known and Unknown’
factors:
Individuals differ from one another in their ability to understand complex ideas, to adapt effectively to the
environment, to learn from experience, to engage in various forms of reasoning, to overcome obstacles by
taking thought. Although these individual differences can be substantial, they are never entirely consistent: a
given person’s intellectual performance will vary on different occasions, in different domains, as judged by
different criteria. Concepts of "intelligence" are attempts to clarify and organize this complex set of
phenomena.
The second definition comes from an editorial in the journal Intelligence and was agreed by intelligence
researchers (Gottfredson, 1998):
a very general mental capability that, among other things, involves the ability to reason, plan, solve problems,
think abstractly, comprehend complex ideas, learn quickly and learn from experience. It is not merely book
learning, a narrow academic skill, or test-taking smarts. Rather, it reflects a broader and deeper capability
for comprehending our surroundings—"catching on", "making sense" of things, or "figuring out" what to do.
These definitions of intelligence are focused on human intelligence, but in fact the concept of intelligence may
take different meanings in different areas, for example in business, machine, and military intelligence. Most
modern industries are information intensive structures, so in this area the definition of intelligence can be
considered to consist of information gathering. Hence, intelligence is the process and the result is a capability
that can be measured in the form of an intelligence quotient based on the results of the application of this
capability to processes. In addition to analyzing the information that has been gathered, intelligence answers
questions or gives advance warnings that facilitate planning or decision-making for future development.
As a key driver of social and individual cognition, intelligence is an enabling force for performing mental and
cognitive activities (Gottfredson, 1998; Sternberg et al., 2003). In addition to the individual level, intelligence
is also important at the organizational level. It has been conceptualized as a critical capability of organizations
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(Leidner and Elam, 1995; Glynn, 1996; Akgün et al., 2003). Here, it will be seen that how cognitive abilities
function at the individual and organizational level.
Human Cognitive Abilities
An ability is defined as “the quality of being able to do something: physical, mental, financial, or legal power
to accomplish something” according to the American Heritage Dictionary (2000). Using a psychological
perspective, English and English (1958, p. 1) defined ability as “[the] actual power to perform an act, physical
or mental, whether or not attained by training and education,” and they distinguish between two major types
of abilities with the following definition:
“General Ability is concerned with all sorts of tasks, but especially those of a cognitive or intellectual sort.
Syn. Intelligence.
Special Ability has to do with a defined kind of task. Each special ability should, when possible, be so defined
as not to overlap with other special abilities.” (1958, p. 1)
Although the term “ability” can be used to characterize or modify attributes of human individuals such as
musical ability, athletic ability, or cognitive ability, cognitive ability is generally concerned with all levels of
tasks in human beings. “Task is defined as any activity in which a person engages, given an appropriate setting,
in order to achieve a specifiable class of objectives, final results, or terminal states of affairs” (Carroll, 1993,
p. 8).
The study of cognitive abilities is an important part of the quest to develop a test of mental ability. Cognitive
abilities can be interpreted in the developmental period of mental testing as being oriented toward the
measurement of a common concept of intelligence. Defining cognitive abilities in terms of a single measure
originated from Charles Spearman’s assertion that:
“Mental abilities of nearly all kinds are positively linked in the sense that if we are good at one thing, we are
also likely to be good at others” (Spearman, 1904, as cited in Flanagan, et al., 2000).
He proposed the concept ‘general intelligence,’ which is now known as the psychometric ‘g.’ According to
Spearman, intelligence consists of two kinds of factors: a single general factor and the g factor (or g) that
would explain all observed correlations. Based on factor analysis in mental abilities, the Gf-Gc theory has been
developed as a foundation for the development and interpretation of intelligence batteries. R. B. Cattell (1941)
first postulated Gf-Gc theory as consisting two major types of cognitive abilities: Fluid Intelligence and
Crystallized Intelligence. This is now known as the Cattell-Horn theory of fluid and crystallized intelligence
(Plucker, 2003). The Gf-Gc theory has been used to understand and create order within the domain of human
cognitive abilities and has been extended into the ten cognitive abilities shown in the table given below. The
broad abilities, in the form of the ten cognitive abilities, represent “basic constitutional and longstanding
characteristics of individuals that can govern or influence a great variety of behaviors in a given domain” and
they vary in their emphasis on process, content, and manner of response (Carroll, 1993).
Ability
Fluid Intelligence (Gf)
Crystallized Intelligence (Gc)
Quantitative Knowledge (Gq)
Reading/Writing Ability (Grw)
Short-Term Memory (Gsm)
Visual Processing (Gv)
Auditory Processing (Ga)
Definition
Mental operations with a relatively novel task: forming
and recognizing concepts, drawing inferences,
comprehending
implications,
problem
solving,
extrapolating.
The breadth and depth of person’s acquired knowledge of
a culture and the effective application of this knowledge.
An individual’s store of acquired quantitative declarative
and procedural knowledge
An acquired knowledge about basic reading and writing
skills required for the comprehension of written language
and the expression of thought via writing.
The ability to apprehend and hold information in
immediate awareness and then use it within few seconds.
The ability to generate, perceive, analyze, synthesis,
store, retrieve, manipulate, transform, and think with
visual patterns and stimuli.
Cognitive abilities that depend on sound as input and on
the functioning of our hearing apparatus and reflect the
degree to control the perception of auditory stimuli inputs.
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Long-Term Storage and
Retrieval (Glr)
Processing Speed (Gs)
The ability to store information in and fluently retrieve
new or previously acquired information
The ability to fluently and automatically perform
cognitive tasks.
Decision/Reaction Time (Gt)
An individual’s quickness in reacting (reaction time) and
making decision (decision speed)
Table 1 The Definitions of Gf-Gc Broad and Narrow Abilities
Organizational Cognitive Ability
Organizational cognitive ability is an analogue of human cognitive ability. This is the organization-based skills
and organizational processes that are needed to perform organizational tasks. The organization aims to provide
organizational cognitive ability appropriately for a specific task.
Organizational Intelligence is the combined knowledge and skills regarding both tangible and intangible assets
that the organization can deploy to achieve its goals.
Cognitive Ability Perspective- Emulation
A better understanding of human cognitive ability and how it can be mapped to organizational cognition
contributes to the development of new intellectual approaches in comparing and examining current
organizational practices and processes for the optimal use of intellectual capital during an organizational
activity, especially a managerial process. The initial step in formulating the new Management of
Organizational Intelligence (OI) theory is to develop an understanding of organizational cognitive ability,
which can then be used to map organizational cognitive ability to the managerial process for characterization.
Concepts shown in the table above demonstrate the parallels between human cognitive ability and
organizational cognitive ability; (1) Decision/Reaction Time (OIt), (2) Processing Speed (OIs), (3)
Quantitative Knowledge (OIq), (4) Reading/Writing/Recording Ability (OIrwr), (5) Visual Processing (OIv),
and (6) Working Memory and Retrieval (OImr), are all modeled from human cognitive abilities. Human
cognitive ability is a gift that is a basic part of human nature. Human cognitive ability is a constitutional and
longstanding characteristic and is concerned with all levels of human tasks (Carroll, 1993). The study of
cognitive ability in psychology is based on two abilities, fluid intelligence and crystallized intelligence. Fluid
intelligence describes the reasoning for doing something, and crystallized intelligence is the ability to retrieve
necessary knowledge from memory. In organizing a knowledge framework for OI management, this research
combines the human cognitive abilities of Short-term Memory (Gsm) and Long-term Storage and Retrieval
(Glr) to form Working Memory and Retrieval (OImr). The managerial process is the planned activity within
defined phases and is not depended on Short term Memory (Gsm). Human Auditory Processing (Ga) has been
incorporated into Reading/Writing/Recoding Ability (OIrwr) because organizational activities generally do
not include auditory processing.
The research (Jung, 2009) suggested that a set of six organizational cognitive abilities provides a mutually
exclusive and collectively exhaustive set of cognitive abilities for OI. A detailed definition of these six
organizational cognitive abilities is described as follows:
Decision/Reaction Time (OIt) reflects how quickly the organization reacts and makes decisions.
Decision/Reaction Time (OIt) reflects the immediacy with which an organization addresses problems and
selects from among a range of alternative solutions. This is a qualitative response that is related to Processing
Speed (OIs) in organizational activities.
Processing Speed (OIs) is the ability to perform tasks fluently including uncommon tasks, to maintain focused
collaboration. Faster processing speed is more efficient because it improves the power of the Working Memory
and Retrieval (OImr) and Decision/Reaction Time (OIt).
Quantitative Knowledge (OIq) represents the organization's capacity to acquire quantitative, analytical, and
procedural knowledge and then solve quantitative organization activities and problems, including numeric
calculations such as accounting, estimating, scheduling, and resource allocation.
Reading/Writing/Recording Ability (OIrwr) is the basis upon which the organization acquires and
exchanges information in unified formats, both within the organization's own structural hierarchy and with
outside organizations, encompassing the available usage in the field or office, e.g., field reports, daily logs,
submittals, and so on.
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Visual Processing (OIv) denotes the organization's ability to acquire, generate, analyze, synthesize, store,
retrieve, transform, and deliver visual objects or pattern images, and form and store images such as graphical
charts, digital photos, visualizations, and animations.
Working Memory and Retrieval (OImr) is the ability to apprehend, hold, store, and fluently retrieve new or
previously acquired information such as change orders, daily reports, and drawings. Personnel must be able to
update, modify, store, and later retrieve documents from the organization's database at need.
The performance of any organizational task requires knowledge and ability, and most tasks require knowledge
from multiple sources and integrative abilities. For instance, the successful processing of a Request for
Information (RFI) in construction may depend on at least three organizational cognitive abilities: (1)
Processing Speed (OIs); (2) Reading/Writing/Recording Ability (OIrwr); and (3) Visual Processing (OIv).
RFIs have been converted from a communication tool to a means of preventing defective design (Zack, 1999).
OIv can clarify a drawing defect, OIrwr can prevent duplication, and OIs can prevent unnecessary delay.
To paraphrase Flanagan et al., (2000) within an organizational context, the six organizational
“cognitive abilities represent basic typical and longstanding characteristics of (organizational) intelligence
that govern or influence a great variety of functional tasks in a given (organizational) processes.”
The development of organizational cognitive ability can explain procedural activities in the organization and
determine the effective utilization of capitals. But it is up to the people working in the organization that whether
they can actually improvise the cognitive abilities of the organization or not.
METHOD
For authenticating that whether intelligent people working together in an organization would result in making
the organization intelligent or not, an assessment of OI was done.
PARTICIPANTS
In the study, 304 scientists participated from different units of the R&D organization. Their age ranged from
23 to 58 years.
MEASURES
Organizational Intelligence Profile (Albrecht, 2002).
For measuring organizational intelligence, organizational intelligence questionnaire was used which was
designed by Karl Albrecht in 2002. It has 49 questions in seven dimensions which are strategic vision, shared
fate, appetite for change, heart, alignment and congruence, knowledge deployment and performance pressure.
Its reliability is 0.86.
Procedure
For the study, different units of R&D organization were approached. Participants were told the objective of
the study. And they were assured of the confidentiality of the data. Thereafter, questionnaires were distributed
with all the instructions in it. Participants were assisted if they encountered any problem while filling the
questionnaire. After this results were analyzed.
RESULT AND DISCUSSION
For assessing the Organizational Intelligence Quotient, the scores of the responses were computed and the
means and percentages of each dimension and total score were calculated. As it can be seen from table 2 that
means and percentages of each dimension are very near to each other. The mean and percentage of total OI
score is 148.85 and 60.76 respectively, which tells that scientists who are actually considered to be intelligent
people, when they are working together in an organization, are perceiving the organizational intelligence to be
of average level in their organization.
OI Dimensions
Strategic Vision
Shared Fate
Appetite for Change
Heart
Alignment and Congruence
Knowledge Deployment
Performance Pressure
Total OI
Mean
21.57
21.44
20.46
21.57
20.56
22.21
21.03
148.85
Percentage
61.64
61.26
58.45
61.64
58.74
63.47
60.09
60.76
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Table 2 showing the means and percentages of Organizational Intelligence of an R&D organization
Strategic Vision
60.09
Shared Fate
61.64
63.47
61.26
58.45
58.74
61.64
Appetite for Change
Heart
Alignment and
Congruence
Knowledge Deployment
Figure 1 showing the percentages of seven dimensions of OI of an R&D organization
Though the average OIQ is not that badly reported but it is worth to be given a thought as people who are the
part of the organization, are generally the people with higher level of intelligence, and the disparity which is
coming at the level of human and organizational cognitive abilities should be worked upon. So that, the
organization can maximally utilize the human potentialities which is the objective of organizational
intelligence.
For this, managerial practice should focus on improving organizational intelligence in order to survive. All
dimensions of organizational intelligence are needed to be developed. Organizational intelligence is much
more than information processing capacity. Hence, the focus should not be on the use of advanced information
technologies only. Social and cultural aspects regarding the development of employees and organization
should be considered. To foster innovation, management must be able to influence motivational and situational
factors improving intelligence. Human resource specialists might play an important role to facilitate the
process by sharing their knowledge and expertise regarding human relations in the organization. Intelligent
behavior should be encouraged by incentives. These practices will eventually help in making the organization
intelligent in totality but not just an organization comprising of intelligent people.
REFERENCES
[1] Akgün, A. E., Lynn, G. S., & Byrne, J. C. (2003). Organizational learning: A socio-cognitive framework. Human
Relations, 56, 839-868.
[2] Albrecht, K. (2003). The power of minds at work: Organizational intelligence in action. New York, NY:
AMACOM
[3] Carroll, J. B. (1993). Human cognitive abilities: A survey of factor-analytic studies. Cambridge: Cambridge
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[4] Catell, R. B. (1941). Some Theoretical Issues in Adult Intelligence Testing. Psychological Bulletin, 38(7), 592
(Abstract).
[5] Choo, C. W. (1995). Information management for an intelligent organization: The art of environmental
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[6] Flanagan, D. P., McGrew, K. S., & Ortiz, S. O. (2000). The Wechsler Intelligence Scales and Gf-Gc Theory: A
Contemporary Approach to Interpretation. Needham Heights, MA: Pearson Education.
[7] Glynn, M.A. (1996), “Innovative genius: a framework for relating individual and organizational intelligences to
innovation”, Academy of Management Review, Vol. 21 No. 4, pp. 1081-111.
[8] Gottfredson, L. S. (1998). The general factor of intelligence. Scientific American, 9, 24-29.
[9] Halal, E.W. (1997).”Organizational intelligence: What is it and how can managers use it”. Strategy &Business.
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[10] Huber, G. (1990). A theory of the effects of advanced information technologies on organizational design,
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[11] Jung, Y. (2009). An Approach to Organizational Intelligence Management (A Framework for Analyzing
Organizational Intelligence Within the Construction Process. Virginia Tech.
[12] Kerfoot, K. (2003). Organizational intelligence/organizational stupidity: The leader‟s challenge. Nursing
Economics, 21, 91-93.
[13] Kurzman, C. and Owens, L. (2002), “The sociology of intellectuals”, Annual Review of Sociology, Vol. 28, pp.
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[14] Leidner, D. E. & Elam, J. J. (1995). The impact of executive information systems on organizational design,
intelligence, and decision making. Organization Science, 6, 645-664.
[15] March, J. (1999), The Pursuit of Organizational Intelligence, Blackwell, Oxford
[16] Neisser, U., Boodoo, G., Bouchard, T. J., Boykin, A. W., Brody, N., Ceci, S. J., … Urbina, S. (1996).
Intelligence: Knowns and unknowns. American Psychologist, 51(2), 77-101.
[17] Nonaka, I., Takeuchi, H. (1995). The knowledge creating company: How Japanese companies create the
dynamics of innovation. London: Oxford University Press
[18] Plucker, J. A. (Ed.). (2003). Human intelligence: Historical influences, current controversies, teaching resources.
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[20] Sternberg, R. J., & Kaufman, J. C. 1998. Human abilities. Annual Review of Psychology, 49, 479-502.
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[21] Walsch, J. & Ungson, G.R., “Organizational Memory,” Academy of Management Review 1991, 57-91
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EGO RESILIENCE, HAPPINESS AND QUALITY OF LIFE AMONG
MALES AND FEMALES
ABSTRACT
Ms. Santosh Meena 1
Ego resiliency is the flexible & appropriate expression of ego control in the face of uncertainty, change
& environmental demands – without which people tend to become either over- or under-controlled.
Happiness is a mental or emotional state of well-being characterized by positive or pleasant emotions
ranging from contentment to intense joy. A variety of biological, psychological, religious, and
philosophical approaches have striven to define happiness and identify its sources.
Happiness is life experience marked by a preponderance of positive emotion. Feelings of happiness and
thoughts of satisfaction with life are two prime components of subjective well-being
Quality of life has been defined “as the satisfaction of an individual’s values, goals and needs through the
actualization of their abilities or lifestyle” (Emerson, 1985).
Quality of life should not be confused with the concept of standard of living which is based primarily on
income. Instead, standard indicators of the quality of life include not only wealth and employment, but
also the built environment, physical and mental health, education, recreation and leisure time, and social
belonging.
The study was done on 70 participants residing in Banasthali University.
The objectives of the study were to see the effect of gender and ego resilience on happiness and quality
of life. Tools used in the study were: 1. Ego resilience scale (Block &Kremen, 1996). 2. Oxford happiness
scale (Hills & Argyle, 2002). 3. Quality of life questionnaire (WHO, 1996). Data was analyzed through
mean, SD, t-test and ANOVA. Results revealed that gender and ego resilience significantly affect
happiness. Gender does not affect quality of life whereas ego resilience affects quality of life.
INTRODUCTION
Resilience is an individual’s ability to generate biological, psychological and social factors to resist, adapt and
strengthen itself, when faced with an environment of risk, generating individual, social and moral success. An
important component of resilience, however, is the hazardous, adverse and threatening life circumstances that
result in individual vulnerability. An individual’s resilience at any moment is calculated by the ratio between
the presence of protective factors and the presence of hazardous circumstances.
Ego resiliency is the flexible and appropriate expression of ego control in the face of uncertainty, change and
environmental demands – without which people tend to become either over- or under-controlled.
Resilience, also called ego resilience (J. H. Block & Block, 1980; J. Block & Kremen, 1996) is a fairly stable
personality trait that reflects an individual’s ability to adapt to changing environments. These adaptive
responses may include identifying opportunities, adapting to constraints, and bouncing back from misfortune.
Ego resilience taps the ability to flexibly respond to challenging and shifting circumstances. Ego resilience
also achieves its effects partly by generating positive emotions. When faced with a stressor, people high on
ego resilience experience more positive emotions than do their less resilient peers, even though they experience
negative emotions at comparable levels. Ego resilience refers to the ability to flexibly and resourcefully adapt
to internal and external stressors (Block & Kremen, 1996).
In new or strange situations, the ego resilient individuals rises to the challenge of the situation with numerous
strategies for engaging the unfamiliar surroundings. They will quickly adapt to new situations and often enjoys
and relishes novelty and new surroundings.
When a difficult situation arises in life, the ego resilient individual will be able to think of more possible
(sometimes novel) responses in order to combat the presented problem.
1
Assistant Professor, Banasthali University
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If it seems appropriate, the ego resilient individuals are able to be more relaxed and ‘laid-back’ than they are
used to being, or be more self-controlled and sensible than they are used to being. In other words, they are
able to modify how ‘sensible’ and self-controlled they usually are if the situation requires it.
The ego resilient individuals are able to forcefully alter their situation if required, but are also able to passively
accept their situation when required. This means that at times they will demonstrate assertive behaviour but at
other times will submit to authority or accept their immediate situation if it seems more appropriate to do so.
The ego resilient individuals will be able to make reasonably quick yet appropriate decisions without getting
overly worried and concerned that they might make a mistake or error.
Happiness is a mental or emotional state of well-being characterized by positive or pleasant emotions ranging
from contentment to intense joy. A variety of biological, psychological, religious, and philosophical
approaches have striven to define happiness and identify its sources. Various research groups, including
positive psychology, endeavor to apply the scientific to answer questions about what "happiness" is, and how
we might attain it
Philosophers and religious thinkers often define happiness in terms of living a good life or flourishing, rather
than simply as an emotion. Happiness in this sense was used to translate the Greek Eudemonia, and is still
used in virtue ethics happiness economics suggests that measures of public happiness should be used to
supplement more traditional economic measures when evaluating the success of public policy.
Happiness is life experience marked by a preponderance of positive emotion. Feelings of happiness and
thoughts of satisfaction with life are two prime components of subjective well-being (SWB).
Usually, happiness can be described as a feeling of pleasure or enjoyment, some people think that whenever
and wherever they would be involved with happiness if they feel happy. For plenty of people, families mainly
contribute to their pleasure and satisfying lives. They enjoy spending times with family and friends, in the
meantime getting more fun in return. Families considered as the root of their happiness can strengthen them
and make them become happy persons. In addition, hobbies, sports and games can be serve as a source of fun
and enjoyment, these offer people lots of exciting moments.
Happiness comes from acceptance of your situation or your surroundings. It comes from counting the blessings
around you and believe me each one of us has plenty of blessings if we care to count them. The gift of health,
the gift of families, the gift of friends, and the list is endless. And if we are amongst those who have had more
than their share of sadness in life, there are still things that make you have another go at life. It is a matter of
finding something that will make you feel good about yourself and doing it.
Comparatively, some people see money as a source of happiness while other people define happiness as
something deeper. It is clear that money is the important thing in our lives, but some people are totally addicted
to money. Except money, no other things can make them happy. Maybe some of them can get the happiness
they wanted, unfortunately most of these moneygrubbers are unhappy and died alone. By contrast, some people
define happiness as giving and they come alive by helping other people. They need to feel that they are doing
something useful with their lives and other people, concentrating on giving and helping can afford them this
feeling and also help themselves achieve happiness.
Quality of life has been defined “as the satisfaction of an individual’s values, goals and needs through the
actualization of their abilities or lifestyle” (Emerson, 1985, p. 282).This definition is consistent with the
concept validation that satisfaction and wellbeing stem from the degree of fit between an individual’s
perception of their objective situation and their needs or aspirations (Felce & Perry, 1995).
The World Health Organization defines Quality of life as “an individual’s perception of their position in life
in the context of the culture and value systems in which they live and in relation to their goals, expectations,
standards and concerns. It is a broad ranging concept affected in a complex way by the person’s physical
health, psychological state, personal beliefs, social relationships and their relationship to salient features of
their environment”(Oort, 2005).
Quality of life is a broad concept that incorporates all aspects of life and has been used in a variety of
disciplines such as: geography, philosophy, medical sciences, social sciences, health promotion, and
advertising (Oort, Visser, & Sprangers, 2005). Ferrell, who has carried out a large research programme on
pain and quality of life, defined quality of life as well-being covering four areas: quality of life is physical,
mental, social and spiritual well-being (Ferrell, 1995).
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The first aspect that someone’s life could be measured by is there psychological characteristics. Someone’s
life can be measured by their personality and the way they act around other people. Taking a look at whether
or not the person is a bad or nice person and how they act amongst people on a regular basis. If someone is
lazy, unmotivated, un-concentrated, and angry there quality of life will lessen and they will feel more miserable
then someone with a higher quality of life. Someone that is motivated, active, nice, and concentrated will have
a higher quality of life. Personality is the one thing that people have that shows what kind of people they are
other then there physical appearance. If someone treats other people with respect they will be able to gain that
same respect back and thus having a better relationship with others and knowing people actually want to talk
to and be around you. People with bad attitude often get themselves caught up in horrible situations that could
lead to an unfulfilling life.
Quality of life may be defined as subjective well-being. Recognizing the subjectivity of quality of life is a key
to understanding this construct. Quality of life reflects the difference, the gap, between the hopes and
expectations of a person and their present experience. Human adaptation is such that life expectations are
usually adjusted so as to lie within the realm of what the individual perceives to be possible. This enables
people who have difficult life circumstances to maintain a reasonable quality of life.
The term quality of life references the general well-being of individuals and societies. The term is used in a
wide range of contexts, including the fields of international development, healthcare, and politics. Quality of
life should not be confused with the concept of standard of living which is based primarily on income. Instead,
standard indicators of the quality of life include not only wealth and employment, but also the built
environment, physical and mental health, education, recreation and leisure time, and social belonging.
Over the past decades, the pressure of modern life has grown enormously and engulfed the individuals with
its mounting demands, both personality and professionally. An important goal of mankind has been the pursuit
of happiness and a healthy life. In our fast paced, time driven growth oriented and profit observed modern
technological societies. People experience many pressures that exert a heavy toll on quality of life.
So the purpose of this study is to examine the effect of ego resilience on happiness and quality of life.
LITERATURE REVIEW
Ego resilience is a personality trait that allows individuals to modify the way in which they express ego-control
in order to shape and thrive in their environment. Ego resilience has been linked to a number of positive and
negative outcomes, and has been studied in a variety of populations. Ego resilience was found to be positively
correlated with global adjustment, work and social adjustment, and psychological and physical health
adjustment (Klohnen, 1996). It was also found to be positively correlated with life satisfaction, psychological
well-being, relationship satisfaction, relationship quality, work engagement, physical well-being, and positive
body image, and negatively correlated with psychological distress, relationship conflict, and health problems
(Klohnen, Vandewater, & Young, 1996).
Happiness is a fuzzy concept and can mean many things to many people. Part of the challenge of a science of
happiness is to identify different concepts of happiness, and where applicable, split them into their components.
Veenhoven (2008) investigates that happiness does not lengthen the life of seriously ill people, but it does
prolong the life of healthy people. Happiness appears to protect against falling ill. One of the mechanisms
behind that effect seems to be that chronic unhappiness causes stress, which on its turn reduces immune
response.
Another possible mechanism is that happiness adds to the chance of adopting a healthy life style. An
implication of this finding is that public health can also be promoted by policies that aim at greater happiness
for a greater number.
Holder, Coleman, Wallace (2010) found that those children who said they were more spiritual were happier.
In particular, the personal (i.e. meaning and value in one's own life) and communal (i.e. quality and depth of
inter-personal relationships) aspects of spirituality were strong predictors of children's happiness. Spirituality
explained up to 27 percent of the differences in happiness levels amongst children.
A study of Hosseini, Elias, Krauss & Aishah (2010), investigated that spiritual intelligence had a significant
influence on the quality of life of adolescence and allowed its association with the rational cognition processes
like goal achievement and problem solving.
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Yi & Cotton,(2009) explained chronic illness can lead to poorer quality of life- particularly in adolescents.
New research shows that spirituality may help teens cope with their conditions. Investigated how adolescents
with inflammatory bowel disease (IRD) – a condition characterized by chronic inflammation in the intestinesmay as spirituality to cope with their illness.
Tate & Forchheimer (2002) conducted an extensive study on spirituality and found it to be associated with
both quality of life and life satisfaction.
1. To see the independent effect of gender and ego resilience on happiness and quality of life.
2. To see the interactive effect of gender and ego resilience on happiness and quality of life.
HYPOTHESIS
1.
2.
3.
4.
There will be significant effect of gender on happiness and quality of life.
There will be significant effect of ego resilience on happiness and quality of life.
There will be significant interactive effect of gender and ego resilience on happiness.
There will be significant interactive effect of gender and ego resilience on quality of life.
METHODOLOGY
Sample: In the present study the sample will be restricted to 70 individuals, out of them 35 will be males and
35 will be females, age ranging from 25 to 35.
VARIABLES
Independent variable: Gender, Ego resilience
Dependent variable: Happiness, Quality of life
Controlled Variable: Age
TOOLS EMPLOYED
1. Ego Resilience Scale developed by J. Block & A.M. Kremen (1996).
2. Oxford Happiness developed by Peter Hills & Michael Argyle (2002)
3. Quality of Life developed by WHO (1996)
Statistical Method
Data was analyzed through mean, SD, t-test and ANOVA with the help of computer.
RESULTS
Table 1: two way analysis of variance of gender and ego resilience on happiness
Source of Variance
Sum of Squares
df
Mean
F
Square
581.13
1
581.37
4.82
Gender
Ego Resilience
12768.26
20
638.41
5.29
Gender and Ego Resilience Interactive
3163.62
14
225.97
1.87
Effect
Significance
Level
.035
.000
.067
Table shows that the main effect of gender on happiness gives ratio (70) = 4.82, p<.01 shows that gender did
not affect happiness. Ego resilience has a significant effect on happiness, F (70) = 5.29, P<.01. Interactive
effect of gender and ego resilience did not produce significant effect on happiness. F (70) = 1.87>.05.
Table 2: two way analysis of variance of gender and ego resilience on quality of life
Source of Variance
Sum of Squares
df
Mean
F
Square
Gender
32.62
1
32.62
.48
Ego Resilience
3392.27
20
169.61
2.54
Gender and Ego Resilience Interactive
1499.076
14
107.07
1.60
Effect
Significance
Level
.48
.008
.128
Table shows that the main effect of gender on quality of life gives F ratio (70) = .48, p<.01 shows gender did
not affect quality of life. Ego resilience has an insignificant effect on quality of life F (70) = 2.54, p<.01 shows
ego resilience does not affect the quality of life. In similar vein interactive effect of gender and ego resilience
did not produce significant effect on quality of life. F (70) =1.60, p>.05.
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DISCUSSION
The present study was carried out in order to see the effect of Gender and ego resilience on happiness and
quality of life among males and females and also see the interactive effect of gender and ego resilience on
happiness and quality of life.
The results of the study shows that gender did not affect happiness but ego resilience significantly affect
happiness. The probable reason for the finding can be that happiness is the most important part in our lives. It
is difficult to define happiness because it means different things to the different people. Some people think that
whenever and wherever they would be involved with happiness if they feel happy. Ego resilience individual
rises to the challenge of the situation with numerous strategies for engaging the unfamiliar surroundings.
Person will quickly adapt to new situations and often enjoys. Resilience is the result of individuals being able
to interact with their environments and either promotes well-being.
When the researcher tried to find out the interaction effect for gender and ego resilience on happiness, the
results came out to be insignificant. Resilient individual’s de3scribed as having wide interests and a high
aspiration level and have the tendency to cope with stress. Happiness is characterized by feeling of enjoyment.
In the present time sit is highly valued. When a difficult situations arises in life, the ego resilience individual
will be able to think of more possible responses in order to combat the presented problem.
Other finding of this study was that there was insignificant effect of ego resilience on quality of life. The
probable reason for the finding can be that the ego resilient people have the capacity to modify one’s level of
ego control in response to situational affordance. Ego resilient people have an ongoing and developing fund
of energy and skill that can be used in current struggles and it is a matter of finding something that will make
feel good about yourself and doing it.
According to the hypothesis framed for the study that there would be significant interactive effect of gender
and ego resilience on quality of life the researcher found that gender and ego resilience effect on quality of life
was insignificant. Result can be seen from the table showing that there was insignificant effect of gender on
quality of life. The probable reason for the finding can be that people may have their own opinion and different
ways to measure someone’s life. It is determined by a lot of factors and conditions both in male and female
including employment, income and material well-being moral attitudes, personal and family life, social
support, condition of health and relationship with the environment.
Discussion is lacking incorporating the past supporting studies. Because the variables under study are relatively
new and the studies in these fields are limited.
CONCLUSION
It was found in the study that gender did not affect happiness. Ego resilience has a significant effect on
happiness, and interactive effect of gender and ego resilience did not produce significant effect on happiness.
Gender did not affect quality of life. Ego resilience has an insignificant effect on quality of life that it means
ego resilience does not affect the quality of life. In similar vein interactive effect of gender and ego resilience
did not produce significant effect on quality of life.
LIMITATION AND RECOMMANDATION
larger population.
[2] As the research was limited to educational institutions only, the data could be collected from other
organizations too apart from educational institutions.
[3] A cross sectional and cross institutional study may derive more meaningful results.
REFERENCES
[1] Block, J. (1996). The Construct of ego resiliency. Journal of Personality and Social Psychology.
[2] Block, J. H., & Block, J. (1980). The role of ego-control and ego-resiliency in the organization of behavior. In
W. A. Collins (Ed.). Development of cognition, aﬀect, and social relations: The Minnesota symposia on child
psychology (Vol. 13). Hillsdale, NJ: Erlbaum.
[3] Block, J., & Kremen, A. M. (1996). IQ and ego-resiliency: Conceptual and empirical connections and
separateness. Journal of Personality and Social Psychology, 70, 349–361.
[4] Emerson, E. (1985). Evaluating the impact of deinstitutionalization on the lives of mentally retarded people.
American Journal of Mental Deficiency, 92(30), 277.
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[5] Felce, D., & Perry, J. (1995). Quality of life: Its definition and measurement. Research in developmental
disabilities, 16(1), 51-74.
[6] Ferrell, B. (1995). The impact of pain on quality of life. A decade of research. The Nursing clinics of North
America, 30(4), 609.
[7] Hills, P., & Argyle, M. (2002). The Oxford Happiness Questionnaire: a compact scale for the measurement of
psychological well-being. Personality and Individual Diﬀerences, 33, 1073–1082.
[8] Holder, M. D., Coleman, B. & Wallace, J. M. (2010). Spirituality, religiousness, and happiness in children aged
8-12 years. Journal of Happiness Studies, 52, 165-177. doi:10.1007/s10902-008-9126-1.
[9] Hosseini, M., Elias, H., & Aishah A. (2010). Review study on spiritual intelligence, adolescence & spiritual
intelligence, Factors that may contribute to individual differences in spiritual intelligence & The related Theories
Journal of Social Science, 6(3), 429-438.
[10] Klohnen, E. C. (1996). Conceptual analysis and measurement of the construct of ego-resiliency. Journal of
Personality and Social Psychology, 70, 1067–1079
[11] Klohnen, E. C., Vandewater, E. A., & Young, A. (1996). Negotiating the middle years: Ego-resiliency and
successful midlife adjustment in women. Psychology and Aging, 11, 431-442. PMID: 8893312.
[12] Oort, F. (2005). Using structural equation modelling to detect response shifts and true change. Quality of Life
Research, 14(13), 587-598.
[13] Oort, F., Visser, M., & Sprangers, M. (2005). An application of structural equation modelling to detect response
shifts and true change in quality of life data from cancer patients undergoing invasive surgery. Quality of Life
Research, 14(3), 599-609.
[14] Tate, D., Forchheimer, M. (2002). Quality of life, life satisfaction & spirituality: Comparing outcomes between
rehabilitation and cancer patients. American Journal of Physical and Medical Rehabilitation, 84(6), 400-10.
[15] Veenhoven, R. (2008). Healthy happiness: effects of happiness on physical health and the consequences for
preventive health care. Journal of Happiness Studies, 9(3), 499.
[16] West, C., Stewart, L., Foster, K., Usher, K. (2012). The meaning of resilience to persons living with chronic
pain: an interpretive qualitative inquiry. Journal of Clinical Nursing, 21(9-10), 1284-1292.
[17] World Health Organization (1996). WHO QOL Study Protocol. WHO (MNH7PSF/93.9).
[18] Yi, & Cotton. (2009). Spirituality may help adolescents cope with chronic illness, Journal of Adolescent Health.
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MICRO FINANCE-A GAP FILLER
ABSTRACT
Mr. Narayanan Kannan1
Establishment of Grameen Banks in Bangladesh in 1976 was the stepping stone for foundation of
modern Micro Finance Institution and the whole credit goes to Nobel Laureate Muhammad Yunus. Now
it takes as NGOs, NBFCs, Commercial Banks, Regional Rural Banks, Co-operative societies help in
refinance to these institutions. As the banking sector is moving towards Inclusion aspect, Micro Finance
Institutions takes a major role to penetrate to unbanked areas. After research, expert’s opinion, past
literature survey by Reserve Bank of India, it was found that this sector is having a healthy growth rate
in the near future. If this is one side of the coin, always problems crept up in the other side, in this sector
also where much attention is needed from all ends.
Transparency of the system, technology enabled services are be provided by these institutions. Not by
limiting the scope of funds available, these institutions should seek for other alternate source of funds
that can be procured by of way of capital markets, portfolio investments etc…These institutions are
basically for the persons who were not able to access the traditional banking services and an instrument
for economic development and poverty alleviation in our country. These institutions help in providing
loans only to low income group at affordable rate of interest, with flexibility in repayment and given only
for income generation purposes. MFIs do not call for any collateral securities and not much involved in
cumbersome paper works from the rural masses, which they does not know. Default clicking in choosing
of alternative for the poor people is one of the features of MFIs, in the task of Financial Inclusion.
These institutions not only provide the micro credit to the rural mass but also other financial services
like savings, micro insurance, other services like counseling, training, support to start up businesses that
too way need by the people. Mostly these services are provided at the door steps of the poor people. All
the overhead costs added to the cost of services and the interest charged by these MFIs. As such the
interest rate charged by these institutions seemed to be high but are justified by the cost of capital and
the cost incurred in providing these services.
KEYWORDS: NBFCs, RRBs, Poverty alleviation, Collateral securities, Default clicking, Cost of capital
INTRODUCTION
Micro Finance is a form of financial service for emerging small entrepreneurs and small business men who
need finance without much difficulty as most of poor people are illiterate and not in a position to understand
the procedures to get loans and services. They are often confused in choosing from alternatives of financial
products available. These are something different from modern commercial banking systems as Micro Finance
Institutions are relationship based and group based in providing loans and other services. This also acts as a
movement with an aim to bring the poor masses under the umbrella of Financial Inclusion. This is one of the
ways of weeding out poverty from India. Micro credit, micro insurance etc… are the parts of Micro finance.
Services from these institutions will enhance economic development and also the standard of living of rural
poor people.
PURPOSE:
Earlier rural people were neglected in the banking services purview in the case of loans and deposits. Banks
usually work out the cost of disbursement of loans to poor people who do not have much income for their
repayment along with the interest. It involves much cost on the part of bank to process the papers of loans to
be sanctioned. Usually banks see the Break- even point below which the bank will incur loss for each
transaction. Mostly prospective buyers and reliable customers are being assessed and loans are disbursed in
lump sum to few instead of providing small cakes to large number of poor people where returns are also much
1
Research Scholar, Bharathiar University
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less. In addition to this, loans are usually accompanied with collateral security which the poor do not own.
Even the poor own their self assets land that they do not possess the required title for the same. All these issues
push the poor people into the hands of money lenders who will charge high rates of interest. All the above
concerns are met out by MFI which are also posed to the above risks. Unless these risks managed properly,
MFIs also will be thrown to the grey area. Usually poor people need much finance to meet the various needs.
The needs are met out by the poor through savings or credit. This credit is provided by MFI at a justifiable
cost.
HISTORY OF MICRO FINANCE
Trace of history of providing credit at the door steps of the poor people first goes to Muhammad Yunus and
Al Whittaker in 1970. The success story of Grameen Bank in Bangladesh is the base for modern industry of
Micro financing. Another trace was found in Germany were the rural people were supported first by cooperative lending bank founded by Friedrich Wilhelm Raiffeisen in the middle of 1800. But in India only after
the establishment of Grameen Bank in Bangladesh, the expression of Micro Financing has taken its roots since
1970s.
Definition and features of Micro Finance:
It is defined as “financial services such as savings account and credit provided to rural people which enable to
increase their income and status and also the standard of living of the people”.
The main features of the Micro Financing include:
(a) Loans are disbursed without any collateral security
(b) Finance is provided only to people living Below Poverty Line that too for income generation purpose.
(c) All the services are provided to members of Self Help Groups.
(d) Maximum loan limit under Micro Finance scheme is up to Rs 25000/-.
(e) All the terms and conditions given to poor people are not cumbersome and decided by NGOs.
(f) Micro finance is a broader perspective which includes other financial services like savings, insurance
etc…
whereas the term Micro credit is one in which small amount of loan is only given to small farmers.
Channels of Micro Finance:
In India, Micro Finance operates through two entities:
(a) SHG-Bank Linkage Programme (SBLP)
(b) Micro Finance Institutions (MFI)
(a) SHG-Bank Linkage Programme (SBLP): This is one of the avenues for Micro Finance which was
started by NABARD in 1992. The modus oprendi of this is that usually this SHG forms as small group
mostly of women. These members contribute savings to the group that is formed for this purpose as
and when excess is found in their hands. This pool of savings is again distributed as small loans to the
members as like the bank loan for only income generation purposes. This group will often meet to
reconcile the balance between loan issues and recovery process. Now this has become the popular way
for Micro Finance activity and is self sustainable and this gets support from NGOs.
(b) Micro Finance Institutions (MFI): Those institutions which have micro finance as their main
operation are known as micro finance institutions. Non-Banking Financial Companies (NBFCs),
Co-operative societies, Trusts, Section 25 companies are amongst in operating micro finance and
constitutes the Micro Finance Institutions. These institutions together account for 42% of the micro
finance sector in terms of loan portfolio and NBFCs top the list. These institutions vary in terms of
size, other legal formalities and works on the concept of Joint Liability Group. Like SGH, these are
usually joined together informally and avail loans in groups for mutual guarantee. Various micro
finance institutions give credit below the break-even level which account for high cost and are not
accompanied with any collateral security. Mostly rural people will get loans for shorter duration, and
default will be more in every case.
ROLE OF GOVERNMENT IN MICRO FINANCE
Government plays a primary role in building our financial sectors and economic development. Experienced
experts help the Government to shape out a sound policy for a competitive Micro Finance sector. Instead of
leaving micro finance sectors out of the financial system, the Government should come forward in making
Ministries, central banks and other financial bodies as legal and regulatory environment for their control of
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activities. Price stability through appropriate fiscal and monetary policy has to be done by the appropriate
Government. The Government should allow all types of financial institutions to reach the poor people and
regulate the frame work in such a way that they are under their supervisory control.
STRENGTHENING MICRO FINANCE
The following are some of the ways to strengthen MFIs which acts as a catalyst and also a Gap filler.
a. Regulatory Body: As more institution takes microfinance as a channel and has their own way out, in
bringing out innovative financial products, the question of regulation is the major concern. A
regulatory environment or body is surely needed to protect the interest of stake holders and have the
control in their activities.
b. Supervision: In addition to the above, in the real framework, some supervisors may be deputed to
look into the work of these institutions. They should check the performance of various MFI and their
operation in issue of loans and recovery process. Supervisors may insist upon to go by rule and code
of conduct for the staff of MFIs. As in other cases, cost is the concern.
c. To increase the loan base: MFIs should look into alternate source of finance. Strong equity base by
getting funds from outsiders help the MFIs. Once a strong equity base is formed in these institutions,
they have adequate funds for lending and have a sustainable growth.
d. Going Rural: This should be the focus of any of the MFIs. On seeing the cost of initial set up at rural
areas, these institutions mostly concentrate only in urban and semi urban areas where it is well
established. Government should make a good constitution of funds to make good the initial cost of
establishing the outreach of these institutions in rural areas which is the mantra of Financial Inclusion.
e. IT enabled operations: Modern world is playing with electronic gadgets. All communications and
documentation work are being computerized. If this is the situation MFIs should not rely on paper
work. They have to go along with the modern world to compete in the market. Software programmes,
Management Information Systems etc… should be made use of by these institutions. Our aim is to
reduce the cost per unit which is the main concern in today’s competitive world. The operation and
overhead costs should be minimum so that the ultimate rate of interest charges to the ultimate customer
will be minimum.
f. Common Pricing: All the MFIs should come forward to follow a uniform pricing so that the
comparison of financial products become easy and also the bargaining powers of the customer will be
competitive in the market. Once the regulations on these areas are streamlined, MFIs will well flourish
in the market. It has been seen that some MFIs charge high rates of interest and in the worst case some
make the deposit part as loan amount repayment and no interest is charged for the same. These
unhealthy practices will deface the activity of MFIs.
g. All Financial Products: Like modern commercial banks which have hands full in range of activities,
a similar or in addition value added services should be carried out by these institutions. The traditional
activity of deposit and borrowing /lending which was done during 1920s may not be effective now .
MFIs should involve in every activity and should make every stone turned for the poor.
MODELS OF MICRO FINANCE IN INDIA
Model I - Individuals or group borrowers are financed directly by banks without the intervention/facilitation
of any Non-Government Organisation (NGO).
Model II - Borrowers are financed directly with the facilitation extended by formal or informal agencies like
Government, Commercial Banks and Micro-Finance Institutions (MFIs) like NGOs, Non Bank Financial
Intermediaries and Co-operative Societies.
Model III - Financing takes place through NGOs and MFIs as facilitators and financing agencies.
Model IV - Grameen Bank Model, similar to the model followed in Bangladesh.
In India, Model II of MF constitutes three-fourths of the total micro-financing where activity/joint
liability/Self-Help Groups are formed and nurtured by facilitating agencies and are linked directly with banks
for the purpose of receiving credit.
Performance Indicators of MFIs:
Analysis of financial performance is used to determine the efficiency and outcome of the operations and
whether these institutions serve the purpose for which it is formed. This is usually done by calculating the
ratios and comparing the same. One unit of the financial data is compared with the other. This will not result
in improvement in operations. As an indicator the current scenario is known and some changes have to be
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brought in to see the financial performance. Usually the following six areas are being focused to analyze
financial performance of MFIs.
a. Portfolio Quality: Even though this is named as quality ratio, it provides the information on
percentage of non earning assets which decrease the revenue and liquidity position of the institution.
These are divided into repayment rate, portfolio quality ratios, and loan loss ratios.
b. Productivity and Efficiency ratios: Productivity and efficiency ratios provide information about the
rate at which MFIs generate income to cover their expenses. By calculating and comparing
productivity and efficiency ratios over time, MFIs can determine whether they are maximizing their
use of resources. Productivity refers to the volume of business that is generated (output) for a given
input. Efficiency refers to the cost per unit of output.
c. Financial Viability: Financial viability refers to the ability of an MFI to cover its costs with earned
revenue. To be financially viable, an MFI cannot rely on donor funding to subsidize its operations. To
determine financial viability, self-sufficiency indicators are calculated. There are usually two levels of
self-sufficiency against which MFIs are measured: operational self-sufficiency and financial selfsufficiency.
d. Profitability Ratios: Profitability ratios measure an MFI’s net income in relation to the structure of
its balance sheet. Profitability ratios help investors and managers to determine whether they are
earning an adequate return on the funds invested in the MFI. To calculate profitability ratios, profit is
stated as a percentage return on assets (ROA), a return on business (ROB), and a return on equity
(ROC).
e. Leverage and Capital Adequacy Ratios: Leverage refers to the extent to which an MFI borrows
money relative to its amount of equity.. Leverage states the relationship of funding assets with debt
versus equity. Capital adequacy refers to the amount of capital, an MFI has relative to its assets. Capital
adequacy relates to leverage in terms of the adequacy of the MFI’s funding structure. The term
“capital” includes the equity of an MFI and a portion of its liabilities, including subordinated debt.
SUSTAINABLE MICRO FINANCE AFTER CRISES -A WAY FORWARD
After the strong blow in Andhra Pradesh which is considered to be the hub in South India for Micro Finance
Industry, and the Malegam Committee was formed to study the MFI sector. The recommendations from this
committee made black and white strict regulations in the operations of the Micro Finance Institutions. They
have their own whims and fancies in fixing the lending rates, loan interest rates etc... but now, the rules are
being defined and the work is in progress from Feb 2011. Although some ambiguities are there in some areas,
the operators come in conversion to get the things done. Most of the hurdles are broken to pieces and awareness
with trust is being brought into the minds of the rural masses to make MFIs a successful sector in the years to
come.
CONCLUSION
The ultimate aim is to bring all the people in the same line and not to demarcate between rural and urban areas.
Poverty alleviation is the main task of these institutions which should not be behind the screens. This needs to
be addressed with the help of Micro Finance institutions. The GAP among the rural, urban, rich and poor and
the differentiating line is being erased by these MFI and being filled with range of products which are made
equal to all. As such, it is following a constitutional approach of Equality and helps in economic and social
development of the whole country.
REFERENCES
[1]
[2]
[3]
[4]
[5]
http://en.wikipedia.org/wiki/Microfinance
http://www.iitk.ac.in
http://www.cgap.org
https://openknowledge.worldbank.org
http://accionambassadors.wordpress.com
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ABSTRACT
Ankit Vyas 1
All India surveys such as ASER and the Planning Commission Evaluation Report indicate the existence
of low learning outcomes in primary schools across India, specifically in reading and mathematics. These
outcomes are linked to poor teacher training and quality of teaching in the classroom. In turn, these
learning outcomes affect achievement at higher levels of education. Significant dropout rates exist at the
higher level of education, with only a fraction making it to the tertiary level. The low quality of education
at a primary level threatens to leave a large part of India’s future workforce uneducated and unproductive.
KEYWORDS: quality, outcomes, teacher training, dropouts, skills
INTRODUCTION
The Indian education system has 8 years of primary education, which is free and compulsory, followed by two
years of secondary and another two of higher secondary. Primary education starts from 1st grade and has an
official entry age of six years. However, this entry age does not hold true in reality and classes generally tend
to have a wide age-range. Students are enrolled in public schools as well as private schools, with those in
private schools, making up close to 28% (ASER 2012). Education is a fundamental right, according to the
Right to Education Act, 2009. Currently, India’s literacy rate is 73%. (Census 2011)
Programs such as Sarva Shiksha Abhiyan and other government initiatives have traditionally been focused on
increasing access to schooling. This aspect of education has been fairly successful in India, with a 96%
enrolment rate at primary level. (ASER 2012) However, the enrolment rate peters down significantly by the
end of the secondary level and only a fraction of the students who enrolled in first grade are still a part of the
system by the time their peers go to college.
PROBLEM DEFINITION
Too many students are not learning basic skills such as reading and numeracy in primary school and then
dropping out before completing secondary education. A large part of the student population doesn’t develop
skills that will help them participate actively in the economy.
According to the ASER 2012-13 report, the number of students unable to read a second grade text in 5th grade
is close to 54% of total students. A similar trend was observed for grade 3 students, who were administered a
grade 1 text.
The findings of the Planning Commission Evaluation Report on the SSA(2010) reinforce this. Only 41.7% at
a second grade level were able to read alphabets in their local language. It follows that basics not being built
up at the 1st-2nd grade level are reducing the ability to learn in higher grades. Students fared worse in writing,
with an average score of 30. This is indicative of the procedural and rote learning methodologies followed in
school, which ill prepares students for problems that require application.
In 2010, of all children enrolled in Std. V, 29.1% could not solve simple two-digit subtraction problems with
borrowing. This proportion increased to 39% in 2011 and further to 46.5% in 2012. The proportion of all
children enrolled in Std. V who could not do division problems has increased from 63.8% in 2010 to 72.4% in
2011 to 75.2% in 2012. (ASER 2012-13) Not only is student performance low, learning outcomes are
declining and are likely to decline further unless remedial measures are taken.
The disturbing fact to be noted here is that even though the most basic of concepts were tested, student
performance was dismal. While policies talk about teaching analytical skills and building meta-cognitive skills,
the current performance of the students indicates a gap between the policy framework and reality.
1
Project Associate , IIM-Ahmedabad and Teach For India Fellow(2011 batch)
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The EI-Wipro quality education survey measured quality of learning outcomes in the top schools of India. It
found that class 4 students even in these schools performed below the international average on TIMMS and
PIRLS. (Quality Education survey, 2011)More disturbingly, these outcomes have declined over time, which
is consistent with the ASER 2012 findings. This indicates that rote learning and exam-focused teaching
methodologies are not helping students learn application of skills. The existence of these methodologies even
in India’s top schools reflects a mindset within teachers and school systems that is fixated on a particular
pedagogy and is resistant to change. The EI-Wipro quality education survey also shows that students
performed relatively better on procedural questions, thus indicating a very one-dimensional understanding of
the concepts.
As a corollary of that, students faltered badly on questions that were in a format that they were unaccustomed
to. India participated in the PISA study for the first time in 2012. The PISA looks to test application of skills
in real life situations. Students are not tested on the basis of the syllabus. Two of India’s relatively higherachieving states, Tamil Nadu and Himachal Pradesh were chosen as the sample for the test. In this study, India
stood 71st out of 73 nations. In Himachal Pradesh, only 11% of the students were above the reading baseline
level needed to participate productively in life. (Dev Lahiri, 2012, October 9, Times of India) India’s abysmal
performance in PISA goes to show that rote-learning and syllabus-focused learning is hugely prevalent and
that most students have never had the opportunity to apply the knowledge they have learnt. This goes back to
the syllabus and examination-focused teaching that happens in classrooms across India. Classroom
instructional time is spent in preparation for examinations and this leads to a process-based approach with
focus on teaching content rather than skills.
PROBLEMS LEADING UP TO LOW LEARNING OUTCOMES
Sarva Shiksha Abhiyan is the main program for universalising primary education in India. It lists as one of its
objectives; focus on elementary education of satisfactory quality with emphasis on education of life. However,
the SSA has by and large become a program for increasing inputs and increasing enrolment in schools, in
which it has been successful. However, the lack of focus on quality is evident in the recorded learning outcomes
of ASER as well as in the Annual Report 2012-13 of the MHRD where all achievements listed under SSA are
input based. There is no mention of learning outcomes achieved by students.
The Coleman study (1966) claimed that that learning outcomes were highly dependent on individual race and
family background. However other studies posit that within factors that fall into the purview of education, the
effectiveness of the teacher in the classroom is the most important. (Wright, Horn, Sanders, 1997). Rowe is
even more confident and argues that quality of teaching and learning provision are the most salient influences,
regardless of gender or backgrounds. (Rowe, 2003)
Low Teacher Quality and effectiveness
Now that the importance of teacher effectiveness for learning outcomes has been established, what makes a
teacher effective? Effectiveness of teachers is a complex mix of factors including education, training and
availability. (Sood N., 2002) To examine teacher education, Jayanta Chatterje refers to the National University
of Educational Planning and Administration survey, which found that close to half of the elementary school
teachers, had not completed secondary school themselves. This is much unlike Finland where only the top
graduates are considered for a career in teaching. Sood references Shaeffer (1998) in stating that in-service
training is strongest when it responds to teacher identified needs.
In-service as well as pre-service training programs prepare teachers based on a pedagogy and curriculum that
doesn’t serve them well in their actual class environment. More than 78% of primary schools have three or
fewer teachers to attend to all grade levels, making multi-grade teaching a necessity. (Blum, Diwan, 2007).
Unfortunately, the pedagogy of multi-grade teaching which is vastly different from teaching a single class is
given scant importance during the in-service as well as pre-service training programs of the teachers. A lack
of training does not seem to be the reason behind the poor learning outcomes. Close to 80% of teachers at a
primary level are trained. (Kartik Muralidharan, 2012) This only reflects that the training does not seem to be
effective or in line with the ground realities being faced by teachers. For instance, teachers are not trained to
teach in a differentiated manner in a class where children vary considerably in ability level or where multiplegrades sit in the same class.
The third factor affecting teacher effectiveness and in turn, learning outcomes, is teacher availability. This
would mean teachers coming to school regularly as well as availability of enough teachers to meet the
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prescribed pupil teacher ratio. In India, Teacher absence has been recorded to be 25% on an average, directly
impacting learning outcomes. (Kremer, 2005) To add to the teacher absence, a shortage of teachers exists to
the tune of 19% in rural schools. This impacts the pupil-teacher ratio adversely. 30% of schools don’t have
more than two teachers. Thus absence as well as the teacher shortfall impacts the pupil-teacher ratio adversely
in these schools as well as other schools. A high pupil-teacher ratio in a class with vast differences in learning
levels will in turn adversely impact quality of learning and learning outcomes.
Quality of classroom instruction
The last factor that Sood mentions in her paper on teacher effectiveness is the teaching quality in the classroom
itself. The National Policy of Education, 1986, Right to Education as well as the 12th five year plan speaks
about the need to have child-friendly classrooms. Some of the parameters for a child-friendly classroom are:
students ask questions, student work is displayed in the classroom, teacher relates content to local context,
students are allowed to work in small groups and where TLM other than textbook is used. (National Curriculum
framework parameters)
In a study of 1700 classrooms by ASER, less than 20% of classrooms were observed having any of these
parameters. It turns out that having child-friendly classrooms is not just a humane measure but one that has a
direct link to learning outcomes. Classrooms that had none of the parameters had a mean score of less than
40% while classrooms that were child-friendly and qualified on more than three parameters had a mean score
of 55%. (ASER Policy Brief, 2009). In addition to many teachers not meeting the criteria for education,
availability and training, it is evident that the standard of actual teaching in the classroom falls far below
acceptable measures and goals laid out. Lastly, teacher motivation has an impact on effectiveness and learning
outcomes. In Indian public schools, teacher motivation is low because of lack of accountability, appreciation
and existence of non-teaching duties such as census survey, election duties etc. According to the Planning
Commission’s Evaluation Report on SSA, 76% of urban teachers expressed disinterest in non-teaching
activities. All these factors contribute to lack of teacher effectiveness, which in turn impacts learning outcomes.
IMPLICATIONS FOR POLICY
Despite a 96% enrolment at the primary level, India’s education system fails to capitalise on providing quality
education to these students. Learning outcomes are low and this exacerbates dropouts by the end of the lower
secondary level, which is completed by only 50% students.(UNESCO Institute of Statistics) Out of the 50%
who make it to upper secondary, it narrows down to a meagre 18% at tertiary level. (World Bank 2012). The
low learning outcomes at the primary level might point towards an overestimation of the literacy rate. In fact,
one study found that only 26% of the people classified as literate by the census could read. (Sharma, Haub,
2008) India’s growth depends on its ability to develop a well-educated and skilled workforce. Currently, its
population is engaged pre-dominantly in low productivity jobs in agriculture and this situation is likely to
continue if the learning outcomes don’t improve and dropouts at the secondary level continue. Bhatt argues
that the opportunity cost of two-thirds of India’s children not completing primary education comes to $100
billion per year. (Bhatt, Brookings Institute)
The median age of the Indian population, at 25.1, is amongst the youngest in the world. (CIA World Factbook)
The demographic dividend will be achieved only if the youth, who make up the majority of the population, are
educated. Else, the dividend will turn into a financial burden for the economy. The learning outcomes have
been declining over time and the trend indicates that if the status quo continues, learning outcomes will get
worse.
The Right to Education has made education a fundamental right and has increased access to schools but not
learning. If the RTE is to be implemented in its true spirit, learning outcomes need to be taken into
consideration. The poor learning levels have resulted in a largely under-employed population with large-scale
prevalence of ‘disguised’ unemployment. If the trend of outcomes continues for these students, India will have
a larger proportion of people who are unemployable and unskilled than it has now. Of the 186 million students
in India, only 12.4 percent are enrolled in higher education, one of the lowest ratios in the world. The rest of
the students who drop out, do not pick up even basic literacy or numeracy skills, which leaves them incapable
of joining vocational education. This is indicated by the fact that only 3% of the age appropriate population in
India is involved in any form of vocational training, as opposed to China, which has 20% of its higher education
age-group enrolled in vocational training. (KPMG-China, 2011)This has been made possible due to China’s
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impressive learning outcomes at a primary level, which provides its students with strong fundamentals that
enable them to pick up other concepts and to apply what they have learnt.
The MHRD Annual Report 201-2013 reports that India needs to develop 500 million skilled workers by 2022.
The key word here is skilled because the low learning outcomes at primary and secondary level would mean
that even those who have cleared secondary education might not necessarily be skilled. This clearly indicates
the need for fundamental reforms across primary, secondary and higher education.
CONCLUSION
The learning outcomes have gone down after the introduction of the RTE. The causes behind this have not
been examined. However, another significant development is the RTE regulation of not keeping students
behind till 8th grade. This means that despite reducing learning outcomes, students failing a grade will not be
kept back but will be promoted till 8th grade, by which point, remediation will be ineffective and students
incapable of keeping up with the academic rigor demanded. Issues of teacher training and quality of teaching
need to be examined in the light of student achievement scores. Additionally, outcomes at a primary level
affect the access to vocational education as well. Improving outcomes promises to expand opportunities for
the students to pick up skills that will enable them to be a part of the formal economy. However, currently only
1% students are out of school. Herein exists the latent opportunity that Bardach talks about, of providing
quality education to the second-largest set of school going children in the world.
REFERENCES
[1] ASER.( 2012) Annual Status of Education Report (Rural). Retrieved from
http://img.asercentre.org/docs/Publications/ASER%20Reports/ASER_2012/fullaser2012report.pdf
[2] Planning Commission. (2010) Evaluation Report on Sarva Shiksha Abhiyan. Retrieved from
http://planningcommission.nic.in/reports/peoreport/peoevalu/peo_ssa2106.pdf
[3] Educational Initiatives, Wipro. (2011) Quality Education Survey. Retrieved from
http://www.teindia.nic.in/e9-tm/Files/QES-Executive-Summary-High-Resolution.pdf
[4] Dev Lahiri (2012, October 9), The PISA shocker, The Times of India. Retrieved from
http://articles.timesofindia.indiatimes.com/2012-10-09/edit-page/34324055_1_progressive-schools-indiaenvironment
[5] Ministry of Human Development, Government of India(2012-13) Annual Report. Retrieved from
http://mhrd.gov.in/sites/upload_files/mhrd/files/AR_2012-13.pdf
[6] Wright, S.P. , Horn , S.P. and Sanders, W.L.(1997) Teacher and Classroom context effects on student
achievement: Implications for Teacher Evaluation, Journal of Personnel Evaluation in Education 11: 57-67.
Retrieved from http://www.sas.com/govedu/edu/teacher_eval.pdf
[7] Rowe, K. (2003). The Importance of Teacher Quality as a Key Determinant of Students’ Experiences and
Outcomes of Schooling. Background paper to keynote address presented at the ACER Research Conference
2003. Retrieved from https://www.det.nsw.edu.au/proflearn/docs/pdf/Rowe_2003_Paper.pdf
[8] Sood, N. (2002). Primary School Teachers : Enhancing Effectiveness at no Increased Costs. National
University of Educational Planning and Administration. Retrieved from http://www.nuepa.org/libdoc/elibrary/articles/2002nsood.pdf
[9] Blum, N., Diwan, R. (2007). Small, Multigrade schools and increasing access to primary education in India:
National Contexts and NGO Initiatives. Create Pathways to Access, Research Monograph No 17. Retrieved
from http://dise.in/Downloads/Use%20of%20Dise%20Data/Nicole%20Blum,Rashmi%20Diwan.pdf
[10] Muralidharan, K. (2012). Priorities for Primary Education Policy in India’s 12th Five year Plan. India Policy
Forum 2012. Retrieved from
http://www.ncaer.org/popuppages/EventDetails/IPF_2012/KarthikMuralidharan.pdf
[11] Kremer, M., Muralidharan, K., Chaudhury, N., Hammer, J., Rogers, F.H. (2005). Teacher Absence in India: A
snapshot. Journal of the European Economic Association April–May 2005 3(2–3):658–667. Retrieved from
http://www.teindia.nic.in/Files/Articles/Articles_23feb12/jeea_teacher_absence_in_india.pdf
[12] ASER. (2010). Inside Primary Schools: Teaching and Learning in Rural India. Key Findings. Policy Brief.
Retrieved from
http://img.asercentre.org/docs/Publications/Inside_Primary_School/Policy%20_brief/tl_study_policy_brief_oct
25.pdf
[13] OP. Sharma, Carl Haub (2008). Examining Literacy Using India’s Census, Population Reference Bureau.
Retrieved from http://www.prb.org/Publications/Articles/2008/censusliteracyindia.aspx
[14] KPMG (2011). Education in China. Retrieved from
http://www.kpmg.de/docs/Education-in-China-201011.pdf
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A CASE STUDY ON ANGER MANAGEMENT BY DINT OF
HYPNOSIS
ABSTRACT
Sandhya Gupt 1
Anger is one of the basic human emotions. It is an emotional reaction to an intimidating situation (real
or imagined). It is a reflection of criticisms, rejection, frustration, injustice, rumors, confusion, jealousy
and teasing. It is a very powerful emotion and its expression, even though highly personalized, can
sometimes have a profound effect on other people. A case study was done on a 19 year old adolescent,
residing in Banasthali Vidyapith. Several tests were adhibited on her, like, signs of anger (Speakman,
2009), Anger thermometer questionnaire (Speakman, 2009), My anger triggers questionnaire (Speakman,
2009), Body language trigger questionnaire (Speakman, 2009), How are you feeling today scale
(Government of Australia) to test the client’s intensity, style and presence of anger. The scores on all
these questionnaires were treated as baseline for comparing the scores obtained after hypnotic sessions,
to see if there is any significant change after hypnotic sessions. In addition, suggestibility test by Udolf
(1981) was also conducted to check the suggestibility of the client. This is because research work in the
coliseum of suggestibility indicated a clear developmental trend- young children are significantly more
suggestible than older students and adults (Nurmoja, 2005). Client was given 15 hypnotic sessions.
Reverse count induction technique and bubble deepener technique were used for hypnotic induction,
along with suggestions pertaining to anger management. It is followed by 2-month follow-up. Hypnotic
sessions caused reduction in the client’s anger intensity and style of anger. It is confirmed by the verbal
reports taken from the client. Moreover, after the success of follow-up, client was given several exercises
called “Desired Future Exercises”, taken from Speakman (2009), because anger energy could be
channelised in a constructive manner to achieve future goals and helping to clarify the client’s
constructive goals. These exercises made significant impact on the client
INTRODUCTION
Anger is one of the basic and natural emotions. It is not a commotion, rather a reverberation to shabby treatment
and has been mustered by criticisms, rejection, frustration, injustice, rumors, confusion, teasing, and jealousy.
If an individual perceives the situation intimidating (real or imagined) or finds himself/herself unfairly treated,
anger may result. If injustice is perceived in large amount, the intensity of anger will be high and vice-versa.
Thus, anger comes up as a warning alarm to the concerned individual that nothing is going right for him/her
internally, as an offshoot of unwarranted regimen. Anger provides a person with energy that can be used to
help resolve an unjust situation. That energy can be used in a healthy or unhealthy way (Speakman, 2009).
A multifarious research work has been done on anger and its management. The nature of the emotion is such
that it makes people imagine that it can be reduced only by expressing it against the target person. Catharsis is
sometimes prescribed as a way of handling anger. But research has shown that ventilating anger is not effective
at all in reducing the experience of it. Outwardly expressed anger may be satisfying only if it restores a sense
of control, rights the injustice done to the person, or changes some aspect of the other person’s behavior, which
is indeed less likely than it seems. On the other hand, many people, especially women, resort to denying feeling
angry altogether and this suppression is again very harmful. Suppressed anger has been shown to be linked
with a lot of psychosomatic conditions, among them the most prominent being cancer. It is this clear that
neither the overt expression of anger nor its total suppression is of help in handling it. Nevertheless the
physiological, psychological, and social effects of anger are so severe and destructive (Kassinove &
Sukhodolsky, 1995; Novaco, 1975; Williams et al., 2000) that it is indeed the need of the hour to come up with
effective ways of handling this emotion.
Individuals who express anger by cursing, punishing or otherwise aggressing against others always feel more
irritable and angry instead of feeling less irritable and angry (Berkowitz, 1970). One of the main contributors
1
Assistant Professor, Department of Psychology, Banasthali Vidyapith, Rajasthan
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of mental and physical health problems in adolescents is anger. It is one of the difficult emotions in early
adolescence to recognize and handle (Phipher, 1994; Yarcheski, Mahon, & Yarcheski, 2001). Pollock and
Kymissis (2001) found that adolescents should be trained with skills to handle anger in ways which will allow
them to cope in a productive manner.
Hypnotic suggestions geared towards ego-strengthening are believed to be effective because they are aimed at
increasing one’s self-confidence and ability to cope (Caban, 2004). McNeal and Frederick (1993) explain that
ego strengthening methods work by facilitating one’s development and internalization of their inner structures.
Hypnosis has been described as both a state of altered consciousness (Hammond, 1998; Kahn & Fromm, 1992)
and a “relaxed state of focused attention” (Hammond, 1998). During hypnosis, suggestions pertaining to
thoughts, perceptions, sensations, feelings, and/or behavior can be provided to influence change. Hypnosis is
believed to be effective because it allows hypnotized individuals to focus attention on ideas and motivation,
and in this way to utilize their full ability for mental control (Hammond, 1998). The American Psychological
Association Division 30, Society of Psychological Hypnosis (2003), definition of hypnosis is as follows:
“Hypnosis typically involves an introduction to the procedure during which the subject is told that suggestions
for imaginative experiences will be presented. The hypnotic induction is an extended initial suggestion for
using one's imagination, and may contain further elaborations of the introduction. A hypnotic procedure is
used to encourage and evaluate responses to suggestions. When using hypnosis, the person (the subject) is
guided by another (the hypnotist) to respond to suggestions for changes in subjective experience, alterations
in perception, sensation, emotion, thought or behavior. Persons can also learn self-hypnosis, which is the act
of administering hypnotic procedures on one's own. If the subject responds to hypnotic suggestions, it is
generally inferred that hypnosis has been induced. Many believe that hypnotic responses and experiences are
characteristic of a hypnotic state. While some think that it is not necessary to use the word "hypnosis" as part
of the hypnotic induction, others view it as essential”.
McNeal and Frederick (1993) explain that all ego-strengthening scripts place a positive value on the continuous
reference to strengthening the ego, “I”, or “self.” Self-hypnosis exercises also encourage the individual to visit
her/his “center of survival”.
CASE REPORT
Brief history and presentation of the problem
The client was 19 year old female undergraduate student. She complained of excessive anger on slightest
provocation and short tamper. The problem was commenced when she was a teenage. It has affected all
domains of her life adversely. The client’s interpersonal relations and studies have suffered a lot. As a result,
low confidence, frustration, withdrawal from social situations, isolation and restlessness. She also complained
of headache. She is unable to face her own criticisms. She has a family history of excessive anger, as her father
also suffered the same in his young age.
Assessment Procedure
At the initial assessment, I administered signs of anger (Speakman, 2009), Anger thermometer questionnaire
(Speakman, 2009), My anger triggers questionnaire (Speakman, 2009), Body language trigger questionnaire
(Speakman, 2009), How are you feeling today scale (Government of Australia) to test the client’s intensity,
style and presence of anger. Thereafter, suggestibility test by Udolf (1981) and “lemon test” was also
conducted to check the suggestibility of the client. After initial assessment, client was given several sessions
of counseling and hypnotherapy.
Session 1
In session 1, rapport was established with the client and heard about her problem in detail. She complained
that often she feels excessive anger (impulsive) and not able to control it. Very small things can easily arouse
anger in her. Several efforts were made by her to control the anger, as it was causing stress, frustration, lack
of confidence, helplessness, social withdrawal and isolation in her, but all in vain. This further increased
frustration in her. She also complained that whenever she gets angry, headache is the result. In addition to this,
it was observed that she cannot face her own criticisms placed by others (be it family, friends or others) and
lacked patience. She has a family history of excessive anger, as her father also suffered from the same.
Session 2
In session 2, several tests were administered on the client to test the client’s intensity, style and presence of
anger. Thereafter, suggestibility test by Udolf (1981) and “lemon test” was also conducted to check the
suggestibility of the client. For administration of these tests and sessions of hypnotherapy, informed consent
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was taken from the client. Moreover, client was briefed about the concept of hypnotherapy and its utility in
psychological healing.
Session 3
A session of hypnotherapy was given to the client, addressing her stress and frustration. Reverse count
induction technique along with bubble deepener technique was used to induce a hypnotic state. In this session,
progressive relaxation was given to the client to reduce her stress and frustration. In the end, a metaphor came
– “waterfall”. After the session, client was relaxed.
Session 4
First of all, feedback of the prior session was taken from the client. A session of hypnotherapy was given to
the client, addressing her headache. This headache had no biological origin, confirmed by medical examination
conducted by the doctor. This headache was psychosomatic in nature. A session of hypnoplasty was given to
her. In the end, a metaphor came – “sunlight”. After the session, client reported reduction in headache.
Session 5
Client reported reduction in pain in session 4 but still need was felt for another session of hypnoplasty. In the
end, a metaphor came – “melting butter”. After this session, client did not felt headache. Follow-up
assessments indicated that therapeutic improvement was maintained. Thus, relatively simple and highly
structured relaxation techniques of hypnotherapy may be of considerable help in the treatment of headaches.
It also appears that a high level of hypnotic susceptibility is associated with a better therapeutic outcome.
Session 6
Feedback was taken for the last session and she reported no headache. A session of hypnotherapy was given
to the client, addressing her problem of lack of confidence. Reverse count induction method accompanied by
lake visualization deepener technique was used. During the hypnotic state, client was given the script related
to confidence. In the end, a metaphor came – “white color”.
Session 7
Feedback from the client of the last session revealed that client was feeling confident. A session of
hypnotherapy was given to the client, addressing her problem of uncontrolled anger. For this, therapeutic
interview was used. Initially, the client was taken to deep hypnotic trance, using reverse count induction and
gazing at the stars deepener technique and then client was asked to remember the event which has made her
angry. After this, client was asked to relive that event. Thereafter, client was asked to intensify that negative
feeling. Now, when this happens emotions got released and in the end metaphor came (rainbow) with a positive
feeling. During the hypnotic state, client was given the script related to anger control.
Session 8
Client said that session 7 had positive effects on anger control but still she was finding some difficulty in
controlling the anger. So, second session of hypnotherapy related to controlling of anger was given to the
client. For this, reverse count induction technique and clouds across the sky deepener technique was used. In
the end, a metaphor came – “a bright shinning star”.
Session 9
After sessions 7 and 8, client was able to exercise significant control on anger and was feeling confident.
Thereafter, a session of hypnotherapy was given for anger management. For this, reverse count induction and
floating deepener technique was used. During the hypnotic state, client was given the script related to anger
management. In the end, a metaphor came – “a blue sky”.
Session 10
A need was felt to consolidate the effects of anger management came after session 9. Another session of
hypnotherapy was given for anger management. For this, reverse count induction and fountain deepener
technique was used. In the end, a metaphor came – “a golden colored ray”. Marked change was seen in her
anger. Now she is able to handle her anger well. Thereupon, her stress, frustration, helplessness, withdrawal
from social situations and isolation were greatly reduced.
Session 11
A session of hypnotherapy was given for lack of patience. For this, reverse count induction technique was
used. Suggestion related to patience was given. In the end, a metaphor came – “a lake side scene”.
Session 12
Another session of hypnotherapy was given for lack of patience. For this, reverse count induction technique
was used. Suggestion related to patience was given. In the end, a metaphor came – “colorful flowers”.
In all the hypnotic sessions, depth test was conducted to check whether the client has gone into the state of
hypnotic trance or not. Ideomotor responses were exhibited by the client in all the hypnotic sessions, indicating
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that the client was into the state of hypnotic trance. After each hypnotic session, client was instructed to practice
self-hypnosis and repeat the suggestions in self-hypnosis process.
Session 13
Several exercises namely “Desired Future Exercises” were given to the client – “Anger and your life goals”.
The principle assumption of this exercise is that the energy of anger could be channelized in a constructive
manner to achieve life goals. The exercise will help insure that the client use her anger energy in positive
direction by helping the client clarify her constructive goals. It is conducted in four stepsYour desired future vision - This exercise helped her identify and asked to write her goals in four areas of
her life –
Recreation – It includes questions like - picture yourself in the future you would really like to have? and in
this made-up future, focus on the type of recreation you would enjoy, with friends, on a regular basis?.
Support group – The importance of such a group is often overlooked by our society. It is a crucial part of life
for anyone who is committed to emotional maturity and spiritual growth. It does not replace family. It offers
an alternative where people can feel free to talk openly about certain subjects (Speakman, 2009). More free
than they might within their own family. It is also a place to find like-minded people to build healthy
friendships with. Questions asked were – picture yourself in the type of support group you would really like
to have?, write some words that describe the type of support group you would most like to have?, and visualize
yourself in a best-case situation in your support group, notice what feeling comes up for you?
Career – Questions asked were – visualize yourself going down the career path you would really like? and
visualize yourself that you are pursuing the career which you really like, notice what feeling comes up for
you?.
Family - Questions asked were – picture yourself in your most desired family life situation in the future? and
what feeling comes up as you picture your ideal future in this area of your life?
In the end, client was asked to do the mixing of feelings of all the four areas aforesaid above and asked how
does it feel when you put them all together? And does this change in any way your total desired feeling?
Your un-desired future vision – It describes the client’s undesired future vision. Questions asked were –
visualize the type of future life that you would hate? and notice the feeling such a life would bring?
Decision-making – It plays an important role in one’s life. An experiment was conducted related to decisionmaking. By this experiment, the client was made to realize that what happens to the pictures of your desired
future vision with each decision you run through your mind.
The importance of patience – In this exercise client was asked to go to her quiet place and remain there as
long as she has to wait. It is a difficult task but after a while, the client will begin to feel a new type of strength
building within the client – the strength of patience.
Session 14
When the hypnotherapy sessions were over, the tests which were administered before the commencement of
hypnotic sessions were administered again to evaluate the effects of hypnotherapy. Signs of anger
questionnaire (Speakman, 2009), Anger thermometer questionnaire (Speakman, 2009), My anger triggers
questionnaire (Speakman, 2009), Body language trigger questionnaire (Speakman, 2009), How are you feeling
today scale (Government of Australia) were administered to test the client’s intensity, style and presence of
anger. Thereafter, scores on these tests before and after the hypnotic sessions were compared in order to assess
the effects of hypnosis.
Verbal Account of the Client
Before hypnotic sessions, client complained that “I am suffering from excessive anger due to which I am not
able to interact with other people effectively. I developed a tendency of social withdrawal and consequently
feeling isolation. I did not have the confidence that I can do even small tasks given to me. This has created
stress and frustration in me. Later on, feelings of helplessness have elevated so much that I began to suffer
from headache (psychosomatic in nature). Overall, I am feeling as if something wrong is going inside me and
need to be corrected as soon as possible because it is affecting my life adversely. I am feeling as I do not have
any control on my life and events happening with me. As a result, I am not able to take criticisms effectively.
And this has elevated my anger so much that I cannot control my anger.”
After the hypnotic sessions, the client said that “I experienced positive changes in her behavior. Now, I am
able to control and manage my anger well. Level of patience and confidence also increased and withdrawal
from social situations has been reduced to a good extent. The “Desired Future Exercises” also helped me to
channelize the anger energy in a positive direction (goal directive). During the treatment course, I learned the
self-hypnosis which is very helpful for me. I am happy and satisfied with the results.”
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Session 15
A two-month follow-up was done to evaluate whether the positive effects of hypnosis were persistent or not.
For this all the five tests were again administered. Raw score obtained, after hypnotic sessions, on signs of
anger test was 06 out of 27, i.e., 22.22% and after follow-up, score was 09 out of 27 (33.33%).
Raw score obtained, after hypnotic sessions, on anger thermometer questionnaire was 04 out of 10, i.e., 40%
and after follow-up, score was 05 out of 10 (50%). Raw score obtained, after hypnotic sessions, on My anger
triggers questionnaire was 09 out of 27, i.e., 33.33% and after follow-up, score was 12 out of 27 (44.44%).
Raw score obtained, after hypnotic sessions, on Body language trigger questionnaire was 09 out of 27, i.e.,
33.33% and after follow-up, score was 12 out of 27 (44.44%). Raw score obtained, after hypnotic sessions, on
How are you feeling today scale was 14 out of 20, i.e., 70% and after follow-up, score was 11 out of 20 (55%).
Results exhibited slight dip in the scores of different tests but still the dip was not drastic. Thus, effects of
hypnotic sessions were consolidated over a period of time.
Verbal Account of the Client after follow-up
During a two-month follow-up, to a minute extent my anger got increased but I was able to control it. I did
find some difficulty in handling social situations and stress was also felt. But I was able to face those situations
effectively. Later on, I managed things very well. Hypnotic sessions really helped me to overcome my fears
and weaknesses and it strengthen me from inside, made me mentally tough to deal with challenges in a positive
manner.
Statistical Analysis
The percentage was calculated between the raw scores obtained from different tests administered on the client
before and after the hypnotherapy. Raw score obtained on signs of anger test was 22 out of 27, i.e., 81.48%
and after hypnotic sessions, score on this test was 06 out of 27, i.e., 22.22%. Thus, a reduction of 59.26% was
seen, indicating a remarkable reduction in the signs of anger.
Similarly, raw score obtained on anger thermometer questionnaire was 07 out of 10, i.e., 70% (category – high
anger) and after hypnotic sessions, score on this test was 04 out of 10, i.e., 40%. Thus, a reduction of 30%
(category - calm) was seen, indicating reduction in anger.
Raw score obtained on My anger triggers questionnaire was 19 out of 27, i.e., 70.37% and after hypnotic
sessions, score on this test was 09 out of 27, i.e., 33.33%. Thus, a reduction of 37.04% was seen, indicating
reduction in score on My anger triggers questionnaire.
Raw score obtained on Body language trigger questionnaire was 11 out of 18, i.e., 61% and after hypnotic
sessions, score on this test was 04 out of 18, i.e., 22.22%. Thus, a reduction of 38.78% was seen, indicating
reduction in scores on Body language trigger questionnaire.
Raw score obtained on How are you feeling today scale was 06 out of 20, i.e., 30% and after hypnotic sessions,
score on this test was 14 out of 20, i.e., 70%. Thus, an increase of 40% was seen, indicating increment in scores
on How are you feeling today scale.
Thus, sessions of hypnotherapy worked for the client effectively.
Reflections
The case of a 19 year old girl is a typical case of inability to control anger. Despite effort investment, the
adolescent was not able to exercise control on her anger. This inability of handling the anger has created the
feeling of helplessness, frustration and somewhat felt paralyzed. In discussions with the adolescent during the
initial consultation, it became clear to me that she was not able to hear her own criticisms and lacked patience,
as she had an impulsive attitude. But she was determined to check her anger and she did it with great efforts.
REFERENCES
[1] Berkowitz, L. (1970). The self, selfishness and altruism. In J. Macaulay & L. Berkowitz (Eds.), Altruism and
helping behavior (pp. 143-151). New York: Academic Press.
[2] Caban, A.R. (2004). Effects of hypnosis on the academic self-efficacy of first-generation college students.
Unpublished dissertation. Retrieved from :
http://bscw.rediris.es/pub/bscw.cgi/d4434894/CabanEffects_hypnosis_academic_self_efficacy_students.pdf.
[3] Hammond, D. C. (Ed.). (1998). Hypnotic induction & suggestion. Des Plaines, IL: American Society of
Clinical Hypnosis.
[4] Kahn, S., & Fromm, E. (1992). Dissociation and theories of hypnosis. In E. Fromm & M.R. Nash (Eds.),
Contemporary Hypnosis Research (pp. 390-404). New York: The Guilford Press.
[5] Kassinove, H., & Sukhodolsky, D. (1995). Anger disorders: Basic science and practice issues.
[6] In H. Kassinove (Ed.), Anger disorders: Definition, diagnosis, and treatment (pp. 1-26). Washington, DC:
Taylor & Francis.
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[7] McNeal, S., & Frederick, C. (1993). Inner strength and other techniques for ego strengthening. American
Journal of Clinical Hypnosis, 35(3), 170-178.
[8] Novaco, R. W. (1977). Stress inoculation: A cognitive therapy for anger and its application to a case of
depression. Journal of Consulting and Clinical sychology, 45(4), 600.
[9] Nurmoja, M. (2005). Interrogative suggestibility, trait related and morphofeatural characteristics of human
phenotype. Tese de mestrado não publicada,Faculdade de Psicologia da Universidade de Tartu, Tartu.
[10] Pipher, M. (1994). Reviving Ophelia. New York: Ballantine Books.
Pollock, K. M., & Kymissis, M.D. (2001). The future of adolescent group therapy. An analysis of historical
trends and current momentum. Journal of Child and Adolescent Group Therapy, 11(1), 5.
[11] Speakman, M. J. (2009). Smarts-training workbook on anger management. Retrieved from:
www.smartstraining.com.
[12] Williams, J. E., Paton, C. C., Siegler, I. C., Eigenbrodt, M. L., Nieto, F. J., & Tyroler, H. A. (2000). Anger
proneness predicts coronary heart disease risk prospective analysis from the Atherosclerosis Risk in
Communities (ARIC) study. Circulation, 101(17), 2034-2039.
[13] Udolf, J.D. (1981). Handbook of hypnosis for professionals. NY: Van Nostrand Reinhold Co.
[14] Yarcheski, A., Mahon, N. E., &Yarcheski, T. J. (2001). Social support and well-being in early adolescents.
The role of mediating variables. Clinical Nursing Research, 10, 163-181.
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USE OF HYPNOSIS IN INCREASING MINDFULNESS AND
CONFIDENCE: A CASE STUDY
ABSTRACT
Navya Pande 1
Mindfulness can be defined as having full awareness about the present moment and experiencing the
external world as well as the internal world in a non-judgmental way. Mindfulness has been linked with
enhancing psychological well-being and many positive outcomes in life. A 22 year old female subject
studying at undergraduate level in Banasthali Vidyapith came for general counselling sessions. She
classified herself as being absent-mindedness and was worried about being absorbed in her useless
thoughts. She accepted that often she becomes lost in thoughts but she is also not aware about the
content of her own thoughts. This resulted in lack of self-confidence and positivity in her life leading to
low academic performance. Baseline scores on Mindfulness Attention Awareness Scale (MAAS)
confirmed very low mindfulness and low confidence was checked by administering General SelfConfidence questionnaire constructed by Al-Enezi. Observing the role of unconscious processes in her
mindless behaviour, need of hypnosis was felt. Scores on Short Suggestibility Scale developed by R. I.
Kotov, S. B. Bellman & D. B. Watson (2004) indicated that her suggestibility was high. 10 sessions were
provided which included progressive relaxation and breathing exercises. Reverse count induction
technique and bubble deepener technique were used for hypnotic induction. Suggestions regarding
becoming mindful and aware about the external and internal environment were given along with the
addition of component of being confident in doing every task. After 2 sessions, there was a visible
increase in her confidence level. With each session her confidence and positivity increased and she
reported being more aware about the external environment as well as the content of her thoughts. After
10th session, she reported increased confidence, positivity and mindfulness. Based on her verbal reports,
a two month follow-up confirmed that she had become more mindful and confident. She could easily
focus in class and was even able to control her thought processes to an extent.
INTRODUCTION
Mindfulness can be defined as having full awareness about the present moment and experiencing the external
world as well as the internal world in a non-judgmental way. It refers to being alert towards all the stimuli in
the internal as well as external environment “including thoughts, emotions, sensations, actions, or surroundings
as they exist at any given moment” (Brown, Ryan & Creswell 2007; Mishra, 2004). It connotes experiencing
the totality of environment and observing its beauty in every single moment. Brown & Ryan (2003) define
mindfulness as “an open or receptive attention to and awareness of ongoing events and experience”. A mindful
person’s mind is like a polished mirror which reflects everything which is in front of it without any effort or
biasness (Brown, Ryan & Creswell, 2007). Links between mindfulness and attentional control as well as
positive affect have been suggested in some studies (Chambers, Chuen Yee Lo, & Allen, 2008; Wenk-Sormaz
(2005).
Mindfulness has been linked with enhancing psychological well-being and many positive outcomes in life.
There has been an upsurge in research work on the significance of “mindfulness” in enhancing an individual’s
well-being (Brown, Ryan, & Creswell, 2007; Grossman et al., 2004; Ludwig & Kabat-Zinn, 2008;
Shigaki, Glass, & Schopp, 2006). Many mindfulness based interventions have been developed and are being
utilized in resolving numerous issues ranging from mild anxiety to severe depression (Finucane & Mercer,
2006; Hofmann, Sawyer, Witt & Oh, 2010).
According to Woodman and Hardy (2003), confidence refers to one’s belief in meeting the challenge of the
task to be performed. It indicates belief in one’s abilities, being positive about present environment and being
hopeful regarding future.
1
Assistant Professor, Department of Psychology, Banasthali Vidyapith, Rajasthan
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Dörnyei (2005, p.211) stated that the concept of self- confidence is closely related to self-esteem, both share
a common emphasis on the individual’s perception of his or her abilities as a person. Glenda & Anstey (1990)
explained that many researchers used the terms self-confidence, self evaluation, self worth, self appraisal, and
self satisfaction interchangeably. General self-confidence is developed during the age of childhood and
emerges from the accumulation of inter and intrapersonal experiences (Harris, 2009; Brown, 1994). General
self-confidence refers to having confidence in various fields related to life ranging from getting good academic
grades, preparing a project/presentation, significant decision making, fulfilling responsibilities etc.
CASE REPORT
Client’s information and presenting problem:
Miss A, a 22 year old female subject studying at undergraduate level in Banasthali Vidyapith came for general
counselling sessions. She classified herself as being absent-minded and was worried about being absorbed in
her useless thoughts. She accepted that often she becomes lost in thoughts but when asked about the content
of thoughts, she often reported being unaware about it. This resulted in lack of self-confidence and positivity
in her life. She stated that she tried a lot to focus her attention in class but was unable to do so leading to low
academic performance. She also reported being lost in spontaneous thoughts while reading a book. She
believed that her overall awareness of the external environment was low. Also she reported often being
unaware about her internal body problems or aches until her problem increased too much. She was much
worried about her academic performance and showed very low self-confidence.
Brief History: The client had lived in a small orphanage throughout her childhood where she had minimum
exposure to external world. Being confined to the premises of the orphanage, she had limited contact with
external world.
Initial Assessment:
I administered the Mindfulness Attention Awareness Scale (MAAS) developed by Brown & Ryan (2003) to
obtain the baseline scores on Mindfulness. The range of the scores is between1-6 and she scored 2 indicating
low mindfulness. Also she reported consciously “trying her best” to reduce her absent-mindedness and gain
more self-confidence in her life.
For assessing the self-confidence, General Self-Confidence questionnaire constructed by Al-Enezi (2005) was
used. She scored 60, indicating low confidence level in educational setting. Her verbal reports indicated low
confidence in other general areas of her life.
I also administered Short Suggestibility Scale developed by R. I. Kotov, S. B. Bellman & D. B. Watson (2004)
to assess her suggestibility. Her scores were found to be 95 which indicated high suggestibility.
Rationale for using hypnosis: Observing the role of unconscious processes in her mindless behaviour, need
of hypnosis was felt. For knowing her suggestibility, I did the ‘lemon test’ in which she showed sensitivity. I
also asked her to imagine some situations eliciting visual, auditory, olfactory, gustatory, tactile, and body
kinaesthetic imagery. She responded well to the different imagery situations. However, she reported less
vividness in visual imagery.
Results of Short Suggestibility Scale (SSS) also confirmed high suggestibility. So, hypnotherapy was opted
for bringing out positive changes in her.
METHOD
Session 1-3:
As Miss A had come to the counselling cell for general counselling, first three sessions were utilized in
developing good rapport with her, listening to many of her presenting issues and identifying the main problem.
She was too much worried about her absent-mindedness in class and resulting low academic performance. She
was highly willing to enhance her confidence and reduce her mindless behaviour.
Verbal report prior to hypnosis sessions: “I am frequently lost in spontaneous and irrelevant thoughts. I am
unable to focus on what the teacher teaches in class. I try my best but fail. This is driving me crazy. I am not
capable to do anything successfully in my life. People call me absent-minded and I hate this label. ”
Session 4:
One of the first tasks was to clarify Miss A’s goals and expectations. She was asked what she actually wanted
out of the hypnosis sessions. She was asked to write down a statement in present tense. The statement was
actually the suggestion which was intended to bring positive change in her life by increasing her
mindfulness/awareness and self-confidence. Reverse count induction technique was used for hypnotic
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induction and bubble deepener technique was used for deepening of trance state. Progressive muscle
relaxation, use of symbols, and visualizations with dominant auditory, olfactory and tactile imagery were
provided (as her other modalities were better than visual). The purpose of the progressive muscle relaxation
was to reduce stress. Ideomotor signalling was established by providing illusion of choice and the client chose
index finger movement to indicate yes responses.
Suggestions regarding becoming mindful and aware about the external and internal environment were given
along with the addition of component of being confident in doing every task.
Session 5:
In session 5, a brief feedback of prior session was taken and then again hypnosis was induced. State of trance
was deepened by using under water script. Attention was given to the auditory and tactile details of the given
scene. When the client indicted “yes” with her index finger, it was established that she was in a deep state of
trance. In this session also previously framed suggestions were provided to her subconscious mind while she
was imagining herself in the classroom. It was ensured that the suggestions penetrated deep inside her mind.
While she was imagining herself in the classroom, it was discovered that her subconscious mind chose a
“shower of light with a warm tingling sensation” all over her body as a symbol for becoming more focussed
and confident. Ego strengthening positive reframing was done before taking her out of trance.
At this stage, Miss A was taught self-hypnosis, so she could practice on her own every day and continue to
benefit and progress.
Session 6:
At this stage, there was a visible increase in her confidence level. She also reported that her chattery mind had
become calm. Using familiar induction and deepening procedures, trance was induced. After repeating the
suggestions several times to her subconscious mind, positive ego strengthening reframing was done. She was
again asked to imagine a classroom situation in which the teacher was teaching and she was confidently
grasping everything. Her symbol “the shower of warm light” served as an anchor. She was also asked to
imagine herself reading a book and being able to maintain focus on its content. As hypnosis is a state of high
attentiveness, the client gained confidence by being focussed on my voice and suggestions during hypnotic
trance. Miss A was happy on her increased focus and awareness during hypnosis but she was still not much
successful in generalizing the focussed awareness in her academic/general life. To help her cope up with her
absent-mindedness in class and during reading, she was given home assignment of practising self-hypnosis
while imagining herself to be more mindful and confident.
Session 7:
Brief feedback was taken about the past sessions and homework self hypnosis sessions. She appeared to be
calm and confident and was willing to gain more out of the remaining sessions. She felt “in control” and
reported having “more confident and hopeful”. Still, she was experiencing some trouble in being “focussed”
in real-life classroom setting and reading alone. To help her cope up with her absent-mindedness and to speed
up her progress, a new hypnotic induction called “waking/alert hypnosis” (Wark, 1998, 2006; Iglesias &
Iglesias, 2005; Capafons, 2004) was introduced. In this technique, state of hypnosis is induced with “open
eyes”. While asking her to focus on an external point, a hyper alert trance-like state was induced in which the
suggestions for “drowsiness” were replaced with suggestions of “being more and more alert with each count”.
I did an alert induction with strong “here-and-now” focus. I had her alertly attend to the feelings of her body
in the chair, sound of my voice, the pattern of her breathing, and her sense of current control. Then I suggested
her to recall a recent classroom experience and asked her to hold an image of herself being able to focus in
class. My goal was to associate the hyper attentive but calm state of “alert hypnosis” with her classroom
experience so that she would remain more attentive and calm in her future classroom setting. While she was
in an alert hypnotic state, ego-strengthening messages and previously formed positive suggestions were also
repeated to her and she was asked to repeat them in mind. Post hypnotic suggestion was given for recreating
the focussed awareness state in real life educational setting or wherever she needed to focus.
She was taught how to induce a state of “alert self-hypnosis” so that she could remain alert and focussed in
class as well as while reading/studying by being in an alert state while attending to the task at hand as well as
being in touch with other significant aspects of “here and now”.
Session 8-9:
Alert hypnosis was induced and while letting her practice to be calm, confident and focussed, ego strengthening
messages were continued to be provided. The previously used symbol “shower of light with warm tingling
sensation” still served as an anchor to stay alert and focussed in the hypnotic state.
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This hypnosis technique worked very well with Miss A and she was able to become alert and focused in her
classroom. She was able to grasp most of the points of her teachers’ lectures and became confident enough to
raise questions and initiate useful discussions. Now she also reported being able to stay focussed while
reading/studying. When spontaneous thoughts occurred in her mind, she was capable of being aware about
their content and of her was able to manipulate them.
She was capable of practising self-hypnosis efficiently for being more mindful/aware for the task at hand as
well as being in touch with external and internal messages. She could induce an alert-hypnotic state and use
the positive suggestions for increasing mindfulness and confidence whenever she felt flow of irrelevant
thoughts.
At this stage, she herself believed that her “problem doesn’t exist anymore”. She was experiencing more
awareness, mindfulness and confidence. The best thing was that she believed herself to be capable of
independently handling her future issues. The session ended with a talk with her about next session and
considering her improved condition, a mutual decision was made to provide her one more last session.
Session 10:
A feedback was taken since the beginning of sessions-starting from counselling to hypnotherapy. One more
final session of “alert hypnosis” was given. She was alert throughout the session and confidence was
shimmering on her facial expressions. During the hypnotic session, ego strengthening messages were given
again along with the post hypnotic suggestions of being totally confident, mindful as well as independent in
her future life. She was asked to feel completely in charge of her life. “Shower of warm light” remained her
anchor for focus. Towards the end of the session, another interesting symbol emerged. She could feel a “sharp
piercing positive energy coming in waves towards the point between her eyebrows”. It provided her a sense
of strength and autonomy to handle her future issues successfully.
While preserving all the strength, autonomy and focussed awareness, she was brought out of that state. A post
hypnosis assessment was made by giving her the previously used questionnaires viz. Mindfulness Attention
Awareness Scale-MAAS and General Self-Confidence Questionnaire (GSCQ).
Statistical analysis: Earlier percentage of her mindfulness was 33.33 % (she scored 2 out of 6) and that of
self-confidence was 48 % (she scored 60 out of 125). Post hypnosis assessment showed that her mindfulness
increased from 33.33 % to 66.66 % (she scored 4 out of 6) and her self-confidence increased from 48 % to
80 %100 (she scored 100 out of 125). Thus, after hypnosis sessions, there was a 33.33 %percent increase in
her mindfulness and 32 % increase in her self-confidence.
Verbal reports: “I have gained a lot of confidence.....I can handle my problems well....now I have become
more mindful. I am so happy that I can focus on my class lectures and can study alone as well without being
lost in racing thoughts. I have learned self-hypnosis efficiently and yes..it has been a life-changing experience
for me”
Follow-up: Based on her verbal reports, a follow-up after 2 months confirmed that she had become more
mindful and confident. She could easily focus in class and was even able to control her thought processes to
an extent.
Reflections: This case was a good learning experience. Use of hypnosis in enhancing self-confidence is not
new but to use in increasing one’s mindfulness in educational as well general settings of life was challenging.
Besides using traditional hypnosis, application of new “alert hypnosis” method was utilized to help the client
in becoming more aware/attentive and mindful. As enough research work has already established that
mindfulness is a trait associated with well-being, happiness and improved concentration skills. The therapy
had been successful for the client. Towards the end of the therapeutic sessions confidence and mindfulness got
associated in her mind and emerged as being reciprocal to each other; the former and latter sharing a two-way
relationship.
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MUSLIM WOMEN: INACTIVE DEMOS IN ACTIVE DEMOCRACY
ABSTRACT
Ms. Deepti Acharya 1
Present paper is an attempt to investigate the political conditions of Muslim women in Indian democracy.
Democracy is known for its attitude that always seems as the reflection of the desires of the citizens.
Active demos are those who are found to be eligible for participation in political activities. Basic condition
for a successful democracy is to create feeling of belongingness among the citizens. For this it is important
to confer equal opportunity to all; that can help citizens to identify themselves as the valuable citizens of
the state. Hence, they can place themselves in the existing system. Practicing equality is essential as it can
encourage citizens to participate in social and political environment with all capacity.
Fortunately, in Indian democracy equality in all the sectors is channelized through various institutions
that are maintained and protected by the government. However the question is that whether all sections
are aware about these channels and are using them for their own empowerment? The answer can be
hardly positive; situation is the worst among Muslim women, as they have no social, economic or political
identity.
Finding reveal that their participation in politics does not exist at all as their candidature in election and
civil services is very low. They are suppressed by their society and are systematically ignored by the
political community as well.
KEYWORDS: Muslim women, democracy, political participation, Indian Constitution.
INTRODUCTION
Peaceful participation in country’s politics is the key for a successful democracy. Encouraging participating
conditions generates a sense of belongingness that gives identity to a human as a citizen. That means for the
modern world, participation is the symbol of citizenship. Democracy is identified as the best available form of
the government as one can be assured of his/her peaceful existence and security by marking his/her presence
in the decision-making process that can be directly or indirectly. Political activism is essential for functional
democracy. It decides and defines political relations as per the potential of elite and on the desires of the
common people. In an effective democracy, most common man/woman as the citizen of the same state are
allowed to participate in political actions and are allowed to perform certain legitimate activities 2 that are
intended to influence the authoritative decisions and attitude of the decision makers. All such voluntary
activities are known as political participation. Opportunities for participation will decide the future of the
citizens and their peaceful activities in politics will show their degree of tolerance towards existing political
system, which is important for a heterogeneous society. It is a universal fact that the democracy sustains only
with the contribution of active demos (Sartori, 1958).
Active democracy is a functional democracy. It is a universal fact that idea and practices of democracy3 are
accepted by the world but pure democracy does not exist in any part of the world. Therefore, present paper has
taken political participation as a core activity in democracy and considered democracy as active if it is
providing fair options for participation in politics.
OBJECTIVES OF THE RESEARCH:
[1] Basic aim of the research is to find out the meaning and need of participation of women in a
democracy.
[2] To find the place of women in the democratic countries as they are the members of the biggest minority
in India.
1
Assistant Professor, Department of Political Science, Faculty of Arts, The MS University of Baroda, Vadodara
Legitimate activities are those activities that are taken as the rights and are accepted as the part of the essential for
peaceful existence.
3
Democracy is a form of government that includes maximum people with assurance of maximum justice.
2
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[3] To study political participation and position in a democratic country like India.
[4] To investigative their situation in Parliament and State assemblies.
[5] To analyze the causes of their low participation in politics.
METHODOLOGY
For the present paper primary data from sources like library, newspapers and websites has been used. To bring
rationality in subject both normative and empirical methods are used.
A Thematic Backdrop
Contemporary understanding of democracy signifies that peaceful politics is not only the demand of the social,
economic and political environment but it is an expectation of a democratic set up as well. It is a belief that in
a democracy people will play an effective role as defined by the Constitution. Therefore, it is realized as a two
way process that has a desire for equilibrium of demands that are coming from the environment and
expectations of a political system as a democracy. To attain maximum equilibrium in a democracy equal
treatment with maximum equal opportunities for participation is tried to achieve with constitutional and legal
channels. That is provided by the constitution and is maintained by the government (Acharya, 2012). Although
democratic countries uphold democratic values and practice them as well but the disappointing fact is that
democratic practices are present without full participation of women of the same society. Biased approaches
create a society in which one pillar from the two (man, woman) become untrained in all sense. Equality
between man and woman is a matter of human rights and a must condition for assurance of social justice. That
is the prerequisite for equality, development and peace. (Afkami & Erika, 1997) Historical evidences prove
that women are dominated and suppressed by a society in which she is the part as a wife, mother and manager
of the relations. A woman to manage the things as a master of the society needs freedom to take decisions on
her matters. In the conservative society it is an issue as it is something she is never allowed to have. Aristotle
has described women as a slave to the master that is a man 1. Theorists like Rousseau introduced the idea of
General Will2 that is known for the advancement of equality in politics but which does not stands for the
women’s liberation and equality as political will does not include the will of the woman but is the desire of a
man only.
Such a scenario is universal. Political history is full of scholars who are advocating freedom in social, economic
and political life however it never extended to a woman’s life. According to the population Reference Bureau
2004 world population data women constitute “world’s largest excluded category”. Disturbing fact is that
vacuum is unfilled even with the democratic arrangements. Woman has innocently3 become the part of
unorganized group whose representation in politics is invisible and responsibilities for the same are undefined.
Researchers found that there is no national legislature in the world in which women take 50% of seats.
According to Panton and Hughes (2007), women represent approximately half of the population but only 16%
of national parliament in 190 countries, only 7 have women as head of the government, women are 9% of
ambassador to the United States 7% of the worlds cabinet miniseries, & 8% of world’s mayors. Data provides
indication towards the unequal distribution of political power.
Although by 90’s situation of women has noticeably changed. Social and economic development with the
liberal ideas has made woman visible in many positions. That was earlier only a dream for her but unfortunately
so is not so in all the cases. Changes are observed in the economic sector where they are sometimes earning
more than the male of the family. However, economic empowerment has failed to transform into political
empowerment. Basic challenge before women is to translate their economic advancement into political
development.
It is a fact that women are horizontally and vertically unequal that is not to men only but to women as well.
Sociologist Satya Pal Ruhela has investigated the situation of women in the society as a whole and realized
that in comparison to all other religions, Islam as a religion has not changed its fundamentals and decree
1
Aristotle is a Greek scholar. In his work Republic he considered women as the moveable property of man who is her
master as a father, husband and son.
2
General will is the idea introduced by Rousseau. General will is the reason of the rise of the society and state. It is the
collection of all wishes that are naturally good. It is the collection of all ideal ideas of the people who are living in a
definite territory. Since it is the desire of all (excluding women) there is no controversy in the public life.
3
Women are considered innocent as they were never allowed to be the part of political system hence they are not
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regarding the life women (Ruhela, 1998). The value system of the Muslim society is that woman is assigned a
lower status than the man. That creates a situation where a woman can never expect equal status in the family
and society. (Gender and national Identity: Women in Politics in Muslim Socities, 1994) They are oppressed
in non Muslim countries and even more in Muslim countries. The reason for their sad plight is that they are
living in an autocratic social system where they are governed by Islamic laws and not by the Constitution. In
Muslim countries women are facing a problem of systematic and planed discrimination in their social and
political life. Afkhami argued that Muslim countries perceive democracy as a modern application of Islamic
Shura. In provide political system they follow democratic norms with the help of established democratic
institutions but at the same time they are not ready to extend their trust and tolerance towards women for the
political understanding. 46% Muslim, in Muslim countries believes that Shura is superior to democracy so all
the issues relating to women are not the subject of democracy but it must be and will be decided by the Shura.
So there is no question of political empowerment. Unavoidable fact is that not a single Muslim country
qualifies today as a consolidated democracy by a commonly accepted measure. Few exceptions are there as
some of the Muslim countries are successfully moving towards democracy. Countries like Indonesia (in Dec
1957), Turkey (in 26 Jan 1960) and Egypt (in 8 Sep 1981) have accepted political rights for women that to
with some reservations (Layis, 2006). Turkey, Morocco and Indonesia have seen some reform under the new
wave of democracy; their medieval laws now moderately allow more freedom to women in politics. In
comparison to other Muslim countries, political attitude of men towards women is more positive in Indonesia,
(95%) Lebanon (90%) and Syria (80%).
These are the countries where men trust on the voting skills of women and so women are set free to take their
own decision on political leadership. Islamic values are surprisingly coexisting in their new democratic system
that is known as Islamic democracy. New laws bring new leadership as these Muslim majority countries have
had women as leaders such as  Indonesia, the most populous Muslim country elected Magawati Sukarnoputri as President.
 Pakistan, the second most populous Muslim country, twice elected Benazir Bhutto as Prime Minister
 Bangladesh third most populous Muslim country elected Khalida Zia and Sheikh Hassina as P.M
 Turkey, the fifth most populous Muslim country elected Tansu Ciller as P.M (Afkhami & Friedl, 1997)
Case is not the same with other Muslim countries. In Sudan, Saudi Arabia, and Oman the potential for
democratization is very low. In these countries participation in politics is not seen as a common activity among
women. Society believes that social contract was an agreement that was only between man and state. Hence,
woman has accepted all the deals not as a party but as a silent but active partner of man. So they don’t have
any right to make any demand for participation in politics. That is a reason Islamist of Algeria, Lebanon,
Nigeria, and Saudi Arabia are admiring the democratic system of government and accepting it for rapid
development but are still not comfortable about women’s participation in politics. 76% Muslims do not trust
the political skills of women. They consider hijab as the only right for women. Although headship of women
in some countries is appreciated, but the overall truth about Muslim countries is that they democratize their
institutions without democratic society. Their thrust for political supremacy of man is much stronger than their
quest for the concept of equality.
This shows that political empowerment of women in these countries is a myth as their society itself lacks
gender tolerance, gender equality and most importantly modernity that is must for the changing international
political environment. Behind a successful democratic political system there is democratic society that allows
a culture of freedom and equality. As political and social culture is not much supportive to these values, women
do not get proper place in politics. It indicates that democratic institutionalism is working in Muslim countries,
without equal political rights to women. The surprising fact is that the democratic systems like India and USA
that claim to be more liberal towards women’s liberty do not have a much different attitude towards females.
(Wolbrechet, 2000).
Active demos as active political actors
Political actors are those who have direct or indirect influence in the political system and have capacity to
change the system as per their aspirations. Practices of political actors are highly connected with the idea of
political participation. That means active demos are those who are participating maximum in politics. Before
finding the participation ratio of men and women in politics, it is significant to identify and realize the exact
or closest meaning of political participation. Most common understanding about political participation is
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limited to caste vote or to ask for vote. Understanding gets new expansion with the rise of different patterns of
democracy.
The idea was defined by Leater Milbrath in his work “Political Participation: How and Why people get
involved in politics” (Published in 1965) where he mentioned about political activities as the indication of
political participation. He mentioned three kinds of activities that are - Gladiatorial activities that include the
activities to achieve higher authority in political system like holding a public office by being an elected member
of either of the house. Second types of activities are limited to attending meeting and so on that are known as
Transitional activities. Third type of activity is known as the Spectator activity that is limited to showing
attention or loyalty towards a party. To improve the understanding of political participation in a democracy
following table was used by Leater Milbath:
Typology demonstrates that participation in politics is a enormous phenomenon. The question is that whether
a woman is allowed to participate equally in all such activities. Documentation of equal participation is a must
for the success of a democracy. Therefore democracy is shaped under the legal document known as the
Constitution.1
Indian Constitution: A guarantor of equal political participation
Indian Constitution is known for its liberal assurances of equal opportunities. As a written document it assures
for maximum democratic opportunities for women belonging to different communities. In practice, same can
have different stories but the truth is that in India all the communities whether they are in majority or are in
minority, have all electoral rights including the right to vote and to contest in election. The Indian preamble
starts with the words “WE THE PEOPLE OF INDIA”, the very first words confirm that Indian Constitution
is not only a document drafted by a group of intellectuals but it is a seldom idea of justice and freedom for,
which every citizen is committed. It includes all the citizens in the decision making process. Now it is all up
to the citizens how much they benefit as a member of Indian community. For empowerment of women certain
provisions are especially inserted by the Constituent Assembly that was later improved by the further
governments. Such as Article 1V-A of the constitution (incorporated through 42nd amendment Act),
specifically declares that it shall be the duty of every citizen “to renounce practices derogatory to the dignity
of women” and (Article 15A [e]) to ensure adult franchise, Article 325 declares that no person shall be
ineligible for inclusion in, or to claim to be included in an elected in the political election. Secondly India is
the only country that provides equal adult franchises in one stroke which means both genders have a fair chance
to influence the decisions of the government. However reality is different like any other country women is
bypassed in India.
1
In the present paper third kind of participation activity is not analyzed as Authentic data were not available for the
same.
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Although situation is more or less same among women but in a secular country like India, study of political
behavior of Muslim women is important because as per the census 2001 the total women in Indian population
are 48% in which 6% are Muslim. Present paper assesses the nature of challenges emerging before Muslim
women. Investigations confirm that Muslim women fail to translate constitutional advantages in to more
practical terms.
Seva (NGO) that women from Muslim community are less interested in political activities except voting
activity. Indu Menon in her book “Status of Muslim Women in India” mentioned that 55.56 % women said
that they did not think that politics was a legitimate field for women (Uma, 1993). For them voting is the most
easy and known way of participating in politics. Rest of the activities creates a big world of male dominance.
Only those women who have a political or economic background are taking part in other activities like holding
an office, being a candidate for party office, attending meetings and collecting funds etc.
Position of Muslim women in Indian Parliament and State Assemblies
It is found in centre and state elections that their high voting turnout is fail to provide a status of decision maker
in public life. Since independence only 16 Muslim women are elected as a parliamentary member.
Parliamentary election data shows that women are neglected as a gender as their membership digits never
cross. In some elections, like in 1st 4th 5th 9th 10th and 12th it came down to zero. The Election Commission’s
statistical reports reveal that as far as representation of Muslim women in the Lok Sabha is concerned, there
have never been more than three elected representatives in a House. As in the 15th Lok Sabha, there were three
women members in the sixth and the eighth Lok Sabha. Out of the 549 women elected to the Lok Sabha since
independence, only 18 have been Muslims.
If Muslim women are represented in the House to the same extent as their share in the population, there would
have been 440 MPs, or 40 times their actual number.
Muslim Women in Lok Sabha
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Sources:www.parliamentofindia.nic.
Total average of women’s participation in Lok Sabha is 33.5 % where as the participation of Muslim women
was even less than 1 %. Grime picture is completed with a fact that the women who are elected from Muslim
community are not representing the masses but they are concern with the interest of the elite group of as almost
all the women who are elected for Lower house were belonging to rich and political Muslim community.
Muslim women in Rajya Sabha
It is argued that at central level participation is less because of the political competition that is often intolerable
for women. At national level political parties are hesitating to give party ticket to Muslim women, as in
compare to men they have less social connections. Secondly if ticket is given to them, least support is given
by their own community. Community member give first preference to their own community man than to a
woman. Situation is little better in Rajya Sabha as there is indirect election and to give equal representation to
all the groups, Muslim women are elected or nominated by the government. Rajya Sabha is permanent (cant
dissolved) in nature that is less effective but essential for the participation of the state. Here also representation
and participation of Muslim women is limited to the royal families. There are very few who can mark their
presence in the Upper House like - Shrimati Nargis Dutt, Prof. (Smt.) Shrimati Shabana Azmi, Begaum Aizaz
Rasul Saddiqua Kidwai, Anis Kidwai, Aziza Imam,,Maimuna Sultan, Hamida Habibullah, Noor Jehan Rezaak,
Fatima Ismail, Najma Heptuula, Mohsina Kidwai Sayeeda Khatoon, Sayeeda Anwara Taimur. There are two
limitations of the effective participation in the house one is that it is the comparatively less popular house and
secondly much discussion is not taking place in the house therefore Muslim women are less interested in being
the member of the house. Still among all the other political parties congress seems to be more committed for
the membership of Muslim women in Rajya Sabha as out of the 12 members 10 are nominated or elected by
the congress party. Najma Heptuula is the only exception as she was elected by both the rival parties.
Muslim women in State Politics:
Indian Constituent Assembly was more committed for the decentralization of powers that was the reason that
they made provisions for dual government so that every Indian can get a chance to taste political power, if not
possible in center than in states. Unfortunately in case of women situation is not that appreciable even in states
assemblies as well. Muslims are unevenly speared in India. They are not the regular politicians in the states
where they are in majority. In some of the states Muslim as the community is sharing 15%of the population.
Almost 12 states are having a good number of Muslims especially in U.P., W.B, Kerala and Bihar. Muslim
numbers in such states are influencing the political and economical condition of the state but it does not make
any difference in condition of the Muslim women in the state politics and in the concern society.
MUSLIM WOMEN ELECTED TO STATE ASSEMBLIES
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Jammu and Kashmir and Utter Pradesh are the states where Muslim are in majority and that is the found reason
for the success of Muslim women in election and that for longest. In Uttar Pradesh, Kudisa Begam is elected
from Sandila constituency for thrice. Here again Congress is in good shape as out of the 21 candidates 17
candidates are elected from their party ticket. Above data shows about the failure of the direct participation if
Muslim women in politics, however the question is if there is an indirect contribution of her in politics as
participating in rallies or member of political parties. Research needs to be carried out to find out those women
who don’t have any political background but still acquire a place in the political environment.
Muslim women in administration: As a participant in administrative politics
Administration is the most important part of the decision making. Indian Constitution has provided a system
where administrative participation is possible. Civil services are the options for those who has desire to be a
part of permanent executives bodies. Civil servants are working as an influential body as they know more
about the public issues than to the political leaders. That is the reasons they are identified as the administrative
actors. All caste and religions are allowed to be the part of the administrative system as per their caliber.
However presence of Muslim Women is absent here also. Shaid Iqbal Choudary in his article “Muslim in
Indian Administration: Towards Inclusions?” claims that in 12 out of 20 years no Muslim woman in the
country could achieve a place to IAS; till date, have not been able to create a niche in the Indian administration,
with not more than 15 Muslim women IAS officers serving in the country, out of 4500 odd strength of Indian
Administrative Service. They do have sizeable presence in medicine, engineering, education and various
technical disciplines but administration still remain an area where Muslim women are still missing.
Nevertheless, the Muslim women who made to the top posts in administration are very vocal and articulate,
like the women administrators in majority are. He further added that More initiatives are required to bring
women into administration and that will automatically attract Muslim women as well. 1
Muslim women are illiterate and therefore it is difficult for them to crack exams that demand high caliber and
commitment. Position of Muslim women in political parties as the party candidate
Political parties are the agencies of democratic practices. They are responsible to provide proper candidature
to the Muslim women in election. Unfortunately it is observed that women were never in the list of candidature
and the digit gets down remarkably in case of Muslim women. In the eighth Lok Sabha elections, out of the
seven Muslim women candidates, five were independents, and one each belonged to the Congress and the Lok
Dal. Only the Congress nominee got elected. The result confirms the unwelcoming nature of political parties
1
Authentic data on Muslim women’s presence in administrative services are not found therefore article is quoted
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and hesitating behavior of the society for the female candidate In 1996 for the 11th Lok Sabha, a record number
of 37 Muslim women tried their luck. The Congress fielded only two Muslim women. In the 13th Lok Sabha
elections, 26 Muslim women contested, of whom the number of women contesting as independents was again
high. (Nageshwer, 2011) Although the proportion of Muslim candidate though several times lowers than that
of women, in fact a marginal improvement since 2008 in case of state assembly elections.. Compared to the
35 Muslim candidates put up by the two parties now in state assembly elections happening in Rajasthan and
Delhi as they were 32 in 2008, 27 from the Congress and five from the BJP. (Indian Express 5 Dec.2013)
Muslim women as inactive Demos: Reasons and Consequences
Question of women’s participation is the concern of justice therefore representation is demanded on the
equitable proportion. However, the basic issue is not about the less number of representation but is also
connected with less effective participation. It is a fact that Women’s representation in the parliament, while
important on the grounds of social justice and legitimacy of the political system, does not easily translate into
improved representation of women's various interests (Shirin, 2002). Muslim women as the representative of
their own community and gender have failed to attract the attention of the nation towards their problems.
India is known for its liberal provisions that are committed to the practice the idea of Constitutionalism.
Although rights are equally distributed among Indians, the attitude of the women towards political institution
is not same. The reason is that in all the social groups’ woman always remain a second sex and in case of
Muslim groups she is not even the second sex but the third sex. As she is highly unequal in respect of economic
or educational background to those women who are belonging to other religion and comparatively have a
better position than them. In count to all Muslim women are the willingly slow responders to the changing
socio-economic circumstances (Brijbhushan, 1980). The strongest reason behind the difference lies in cultural
dissimilarity that is playing an important role in the life of a woman. Muslim society is more conservative and
backward than the other social groups. Muslim women suffer more as a member of an economically backward
community than as being a woman citizen of India. Furthermore a Muslim woman is compactly “tied” with
their community in the sense of rights. Often significance is given more to customs of the community that
became their first identity. As time passes their activities are dominated more by the religious identity than the
national identity. Due to the lack of knowledge and awareness about the political rights larger majority of
women are silent about political injustice. Due to suppressed state of mind they are not ready to raise their
voice. That is the main reason they are not enjoying their constitutional political rights even in democratic
countries. That affects their attitude and interest towards politics.
Research demonstrates that the participation of Muslim women in politics is almost inconsequential and
numerically disappointing. The origin of participation is found in personal a psychological need that is thirst
to know and understand the political environment that is to feel powerful and win respect of those who support
him/her. Such passion for power is not seen among Muslim women. It is the time to understand that the
hesitation in participating politics is a psychological problem that is caused by other problems. Mentally they
are not ready to hold dual burden of domestic tasks and political obligations as leader. Lack of confidence to
make speeches or communicate political ideas is other reason for their non-participation. Survey conducted by
Zoya Hasan and Ritu Menon (2005) shows that Muslim women are not politically trained. 58% Muslim women
are literate in which 4% are graduates. It is natural they are not acquiring enough knowledge about politics.
As Muslim women don’t have big social contracts it is hard to find political companions for them. It is realized
that Muslim society and other organization are not coming forward to help them so it is easy for political
parties to sideline Muslim women’s candidature. Furthermore complete transparence is not there in Indian
administrative system that the reason that Muslim women are easily misguided by their own community in the
name of religion and Islam. Unfortunately all constitutional cycles and institutions have failed to improve the
democratic response of Muslim women .Religious, economic, cultural and political factors are collectively
playing a negative role in the political progress of a Muslim woman. Limited and instructed political
participation of Muslim women invites numerous challenges to India’s democratic fabric.
BIBLIOGRAPHY
[1] Afkami, M., & Erika. (1997). Muslim Women and Politcs of Participation. Delhi: Congress Cataloging in
Publication Data.
[2] Afkhami, M., & Friedl, E. (1997). Muslim Women and polities of Particiaption. US: permanence papres .
[3] Brijbhushan, J. (1980). Muslim Women : In Parda and out of it . New Delhi: Vikas Publikashans.
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[4] Deepti, A. (2012). Towardes a Living Democracy : An Indian Experience. In L. B. Kumar Sunil, Management
Research: Current Trends and Practices (pp. 324-326). Delhi: Wisdom.
[5] Sartori G.. (1958.). democratic theory New york: Oxford University Press.
[6] Gender and national Identity: Women in Politics in Muslim Socities. (1994). NewYork: United Nations
University.
[7] Layis, A. (2006). Women & Islamic Law in non muslim state: A case study on Decisions of the Shari'a Court in
Israel . United Nations: Transaction.
[8] Nageshwer, P. K. (2011, july). What is the sahre of Muslim women in Loksabha. Retrieved from
indiacurrentaffairs.org.
[9] Ruhela, S. P. (1998). Empowermwent of Indian Muslim Women. New Delhi: M D Publications .
[10] Shirin, R. (2002). Class, Caste, and Gender- Women in parliament in India. Women in Parliamnet : Beyond
numbers . Stack holm,international IDEA.
[11] Uma, V. (1993). Women in Politces . In Z. A. Siddiki, & A. J. Zuberi, Muslim Women Problems and Prospects
(pp. 66-76). New Delhi: M D Publications PVT Ltd.
[12] Wolbrechet, C. (2000). The Politcs of Women's Rights: parties, positons and Changes. New Jersey: Princeton
University Press.
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E-BUSINESS/E-COMMERCE
ABSTRACT
Dr.Mahadevaswamy M.S 1
The 21st century is one of the most competitive eras witnessed by the human race. To succeed in any
competition one needs to grow. If not so the stagnation occurs and instead of doing well to one’s mental
health it produces stress in the individuals and hence deteriorates their mental health. Thus, every
individual has a tendency to grow not only in his or her field but universally. The tendency to pullulate
has inclined them towards increasing their knowledge base. One can also say that they have tended to be
more curious about their surroundings and this curiosity leads them to know more and enhance their
knowledge base. An individual’s curiosity can be high only if he/she has a good level of subjective vitality.
Subjective vitality is the energy for self, curiosity is the arousal tendency to know and self anchoring is
evaluating and judging oneself. Thus this study is aimed at exploring the relationship among subjective
vitality, curiosity and self anchoring. The study was conducted on a sample of 100 (75 females and 25
males) of 18-21 years of age. The measures used were curiosity and exploration inventory-II by Kashdan
et al. (2009), subjective vitality scale by Ryan and Frederick (1997) and Cantril’s self-anchoring striving
scale (1965). Multiple regression analysis revealed that high subjective vitality group was strongly
predicting curiosity and self-anchoring whereas low subjective vitality group was not predicting curiosity
and self-anchoring.
KEYWORDS: Subjective Vitality, Curiosity, Self-anchoring
INTRODUCTION
The term "Electronic commerce" (or e-Commerce) refers to the use of an electronic medium to carry out
commercial transactions. Most of the time, it refers to the sale of products via Internet, but the term eCommerce
also covers purchasing mechanisms via Internet (for B-To-B).Electronic commerce is generally considered to
be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment
aspects of business transactions. This is an effective and efficient way of communicating within an
organization and one of the most effective and useful ways of conducting business.
The cutting edge for business today is Electronic Commerce (E-commerce). Most people think E-commerce
means online shopping. But Web shopping is only a small part of the E-commerce picture. The term also refers
to online stock, bond transactions, buying and downloading software without ever going to a store. In addition,
E-commerce includes business-to-business connections that make purchasing easier for big corporations.
While there is no one correct definition of E-commerce, it is generally described as a method of buying and
selling products and services electronically. The main vehicles of E-commerce remain the Internet and the
World Wide Web, but use of email, fax, and telephone orders are also prevalent.
E-commerce is the industry of buying and selling products or services via electronic systems, mainly the
internet. E-commerce is a very broad term that is more than just selling products or services; it is intricately
linked together with marketing, design and web-development in general.
OBJECTIVES
Objectives of the study are
 To define what is E-commerce
 To discuss the applications of E-commerce
 To discuss the types of E-commerce
 To describe the life cycle of implementation of E-commerce
 To differentiate between E-commerce and other forms of commerce
 To list the modes of payments involved in E-commerce
1
Principal, Government First Grade College, Hanagodu, Hunsur (T), Mysore (D) 571105, Affiliated to University of
Mysore
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LITERATURE REVIEW
There are several empirical studies are conducted regarding E-Commerce/E-business, a few of the studies are
reviewed here which are given below
According to Timmers(1999) “An architecture for product, service and information flows, including a
description of the various business actors and their roles; and a description of the potential benefits for the
various business actors; and a description of the sources of revenue.”
Hamel (2000) points out that,“…a business concept that has been put into practice.”
“An important part of an e-commerce information systems development process is the design of an e-business
model. Such a model shows the business essentials of the e-commerce business case to be developed. It can
be seen as a first step in requirements engineering for e-commerce information systems.”
“…the main goal of a business model is to answer the question: “who is offering what to whom and expects
what in return”. Therefore, the central notion in any business model should be the concept of value” Gordijn,
Akkermans and van Vliet (2000)
“…very precise way [of highlighting the way of doing business] because stakeholders such as chief executive
officers, marketers and business developers should agree on it, and because it is a crucial bottom line part of
the requirements for an electronic commerce system”. Gordijn, Akkermans and van Vliet (2000)
“…a Business model is a description of how your company intends to create value in the marketplace. It
includes that unique combination of products, services, image, and distribution that your company carries
forward. It also includes the underlying organization of people, and the operational infrastructure that they use
to accomplish their work” KMLab Inc., 2000, in Chesbrough and Rosenbloom, 2002),
“ In the most basic sense, a business model is a method of doing business by which a company can sustain
itself- that is, generate revenue. The business model spells out how a company makes money by specifying
where it is positioned in the value chain”.
Rappa (2003)
“…the method by which a firm builds and uses its resources to offer its customers better value than its
competitors and to make money doing so….. A business model can be conceptualised as a system that is made
up of components, linkages between components, and dynamics.” Afuah and Tucci (2001)
“A business model is nothing else that an architecture of a firm and its network of partners for creating,
marketing and delivering value and relationships capital to one or several segments of customers in order to
generate profitable and sustainable revenue streams.” Dubosson-Torbay, Osterwalder and Pigneur (2002)
“A business model is a description of the commercial relationship between a business enterprise and the
products and/or services it provides in the market.” Hawkins (2002)
We defined e-commerce as an Internet-basedtechnology enabling the exchange of informationso as to
conclude one or more stages ina transaction process. The process dimensionof transactions is crucial for
understanding theimportance of transaction costs and the prospectsof e-commerce. As a transaction
processtakes time, and information about quality isincomplete, people will spend resources.
METHODOLOGY, ANALYSIS & DISCUSSIONS
The study of this paper focus on methodology, analysis and Discussion which are discussed below:
Business-to-business E-commerce: The Internet can connect all businesses to each other, regardless of their
location or position in the supply chain. This ability presents a huge threat to traditional intermediaries like
wholesalers and brokers. Internet connections facilitate businesses’ ability to bargain directly with a range of
suppliers -- thereby eliminating the need for such intermediaries.
Business-to-consumer E-commerce: One-way marketing. Corporate web sites are still prominent
distribution mechanisms for corporate brochures, the push, one-way marketing strategy.
Purchasing over the Web: Availability of secure web transactions is enabling companies to allow consumers
to purchase products directly over the web. Electronic catalogs and virtual malls are becoming commonplace.
Relationship Marketing: The most prominent of these new paradigms is that of relationship marketing.
Because consumer actions can be tracked on the web, companies are experimenting with this commerce
methodology as a tool for market research and relationship marketing:
 Using web tracking and other technology to make inferences about consumer buying profiles.
 Customizing products and services. Achieving customer satisfaction and building long-term
relationships
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Intra-company E-commerce: Companies are embracing intranets at a phenomenal growth rate because they
achieve the following benefits:
Reducing cost - lowers print-intensive production processes, such as employee handbooks, phone books, and
policies and procedures
Enhancing communications - effective communication and training of employees using web browsers builds
a sense of belonging and community.
Distributing software - upgrades and new software can be directly distributed over the web to employees.
Sharing intellectual property - provides a platform for sharing expertise and ideas as well as creating and
updating content - "Knowledge webs". This is common in organizations that value their intellectual capital as
their competitive advantage.
Testing products - allows experimentation for applications that will be provided to customers on the external
web.
Technologies of E-Commerce
While many technologies can fit within the definition of "Electronic commerce," the most important are:
 Electronic data interchange (EDI)
 Bar codes
 Electronic mail
 Internet
 World Wide Web
 Product data exchange
 Electronic forms
Electronic Data Interchange (EDI)
EDI is the computer-to-computer exchange of structured business information in a standard electronic format.
Information stored on one computer is translated by software programs into standard EDI format for
transmission to one or more trading partners. The trading partners’ computers, in turn, translate the information
using software programs into a form they can understand.
Bar Codes
Bar codes are used for automatic product identification by a computer. They are a rectangular pattern of lines
of varying widths and spaces. Specific characters (e.g. numbers 0-9) are assigned unique patterns, thus creating
a "font" which computers can recognize based on light reflected from a laser.
The most obvious example of bar codes is on consumer products such as packaged foods. These codes allow
the products to be scanned at the check out counter. As the product is identified the price is entered in the cash
register, while internal systems such as inventory and accounting are automatically updated.
The special value of a bar code is that objects can be identified at any point w

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