aweshkar - welingkar vol. xvii issue 1 march 2014 weschool 2 a peer reviewed research journal...

aWEshkarPrin. L. N. Welingkar Institute of Management Development & Research

Vol. XVII Issue 1March 2014

EditorDr. (Ms.) Ketna L. Mehta

2 A Peer Reviewed Research JournalaWEshkar Vol. XVII Issue 1 March 2014 WeSchool

aWEshkar

A Peer Reviewed Research Journal

Vol. XV II Issue 1 March 2014 ISSN 0974 – 1119

Managing Editor

Prof. Dr. Uday Salunkhe

Editor

Dr. Ms. Ketna L. Mehta

Editorial Board Members

Dr. Anil Naik, Dr. P. S. Rao, Dr. Sunanda Easwaran, Prof. Anuradha Mahesh, Prof. Sumeet M anerikar, Mr. Giridhar Kunkur

Research Assistant

Ms. Pooja Khedekar

Peer Review Referee Board

Editorial Advisory Board

.

Cover Design and Layout

Prof. Anand Dev James

Dr. Muhammad Ehsan Malik

Director, Institute of Business Administration,

Lahore, Pakistan.

Mr. Punya Prasad NeupaneExecutive Director, Nepal Administrative Staff College,

Kathmandu, Nepal.

Prof. G. M. Chowdhury

Director, Institute of Business Administration,

Dhaka, Bangladesh.

Dr. Arvind V. Phatak, Ph.D.

Laura H. Carnell Professor of General & Strategic Management and

International Business,

Fox School of Business and Management, Philadelphia, USA.

Dr. Makarand Gulawani

Instructor, Grant MacEwan University,

Edmonton, Canada.

Dr. Vijaya Manerikar

Former Director, Jamnalal Bajaj Institute of Management Studies.

Dr. P. V. R. Murthy

Founder, Exclusive Search.

Dr. Girish Prabhu

Director - UBD Innovation,

Strategic Business Development, Srishti Labs, Srishti School of Art,

Design and Technology.

Dr. Snehal Shah

Program Chair, Human Resource Leadership Program, School of

Inspired Leadership.

Dr. Maya Reddi

Professor of Management, Berkeley College.

Dr. G. Ramesh

Faculty, Business Studies, IBRA College of Technology

Dr. Suresh Govindaraj

Professor, Rutgers Business School,

Rutgers University.

Dr. Aman Agarwal

Vice-Chairman and Professor of Finance,

Indian Institute of Finance.

Dr. Swami Manohar

Founder and Managing Director,

LimberLink Technologies Pvt. Ltd.

Prof. Harsh Mohan

Professor, S. P. Jain Institute of Management & Research .

Dr. B.V. D. Rao

Managing Director and CEO, 3 C Consultants P Ltd.

Dr. A. Jagan Mohan Reddy

Associate Professor (HR), Institute of Public Enterprise,

Osmania University Campus.

A Refereed Research Journal with an eminent advisory board, edited by Dr. (Ms.) Ketna L. Mehta, Editor and Associate Dean.aWEshkar is a bi annual journal. WE stands for Welingkar Education and Aweshkar stands for creating new knowledge for thebenefit of the academic & corporate community.aWEshkar (DeefJeμekeÀej) in hindi means Invention. The journal publishes Research Papers, Research Articles, Case Studies, India FocusedResearch, Management Ideas, Management Games, Book Reviews and Poems.aWEshkar is included in: EBSCO Database, USA. Ulrich’ Directory of Periodicals, USA.It has been reflected in many International University Libraries: UNiSA - University of South Australia. Universitatsbibliothek Leipzig, Germany. Bibliothekssystem Universitat Hamburg, Germany.

Printed by Sugam Mudran, 110, Prospect Chambers, Dr. D. N. Road, Mumbai - 400 001, Maharashtra, India.

3A Peer Reviewed Research Journal aWEshkar Vol. XVII Issue 1 March 2014 WeSchool

Contents

Page No.

EDITORIAL

Ketna L. Mehta 6

MANAGEMENT IDEAS

Creating Lasting Organizations: An Integrated Framework 7Abhijit P. Phadnis

INDIAN ETHOS

Disaster Management in Kautilya Arthashastra 13Asawari Bapat

RESEARCH

Can Life Satisfaction be predicted by Emotional Intelligence, Job Satisfaction and Personalitytype? 22Deepika Dabke

Pest and Disease Management of Apple Orchards of Himachal Pradesh: A Potential Area forOptimization 33Vandana Varma and Pawan K. Garga

Do Weaker Companies List in the Stronger Market Conditions? : An Empirical Study from theIndian Equity Market 42Souvik Banerjee

Obstacles to an Emerging Economy: The Imperative of Nurturing Women in India'sWorkforce 54NHRDN Mumbai Chapter and Bright Horizons Workforce Consulting Research Teams

CASE STUDY

Devising a Balanced Scorecard to determine a Standard Chartered Bank's Performance: ACase Study 63Sunita Panicker and Vinita Seshadri


RESEARCH NOTEWhy should Job Identification be distinguished from Job Involvement? : A Review of 72LiteratureStuti Saxena

Does Work Attitude result into Work Behavior for Older and Younger Generation? 89Vibhav Singh

RESEARCH COMMUNICATIONA Note on Exploratory Research 95Vijaya Manerikar and Sumeet Manerikar

YOUNG MINDSStrategic Role of HR in Mergers and Acquisitions 97Prachi Jain

BOOK REVIEWThe Battle for Employment Guarantee: Reetika Khera 100Stuti Saxena

BOOK EXCERPTHow do Leaders Solve Problems: Fables of Vision, Change, Innovation andProblem Solving 102Suresh Lulla

POEMWhat to say when all is said 104Swar Kranti


This is seriously a funny nation, India. There is discrimination even in the game of Chess, as the white pieceis moved first.A person is not disabled by choice. It happens. Congenital - since birth, progressive degeneration in amedical condition or due to an accident. The disabled with immense support from family, doctors and theeco system learns to cope with the new reality and tries to fit in a society which is not compatible bothattitudinally and infrastructurally.I have a spine injury and a permanent disability due to an accident for the past 19 years. More than 1.5million people in India and 2.28 persons per hour suffer from this devastating, life altering spine injury dueto accidents. There is no cure only life- long rehabilitation can allow us to have a threshold quality of life. Ilearnt to adjust using calipers and walker and wheelchair and diapers and catheter and negotiating stairsand pitiful glances and many other forms of discrimination. At no point I could go to a store and ask, "Zaradhai kilo dignity dena please!" and exchange it for some money. No one can buy dignity or self respectand expect it to be doled out to us. My take is, that as soon as we ask, expect or demand; we becomesmaller, lower, inferior and weaker. This would be undignified! To say the least.We, the people with disability have to earn and command dignity. We earn respect for what we do andachieve and how we do and achieve it. Also for our character as human beings first and foremost.The constitution and law of the land is very benevolent and states' Dignity for all citizens'. As People withdisability, we don't exist, we are invisible. Our very existence not acknowledged because we look, walk ortalk differently. Of course we have laws for the disabled, but sadly with no teeth, no voice, no heart, nojustice and no equality (Disabled Laws!)My dignity comes with my identity. For the person that I am. For the happiness my presence creates. Forthe awareness to the rest of the world as to how fortunate and ungrateful they are for what they dopossess!Our collective dignity lies in rising above all this and concentrating on our growth and development, providingand educating ourselves. There are obstacles and discrimination in getting a decent education, but there arestruggles everywhere and for everything.We earn dignity when despite several obstacles we get educated. Sometimes even earning a PhD (whenless then 2% of our entire population has this prestigious qualification).We earn dignity when we secure a job and contribute to the workplace, working diligently and bringing indivergent thinking.We earn dignity when we sincerely pay our taxes to the government (who fails to provide us any basicfacilities).We earn our dignity when we despite our daily personal struggles, care and provide for our family andcommunity - lovingly.Finally, we earn supreme dignity when we inspire 'others' to push their limits and not succumb to theirpressures and stress. When 'others' learn from us to keep smiling and relentlessly work hard to conductroutine activities joyfully.We know what it takes to not only overcome physical infrastructural barriers but also attitudinal and mindsetones. To survive in this country called India we need to possess more strength, spirit and energy and wecollectively can bring about a positive change, where all of us able and disabled can live with dignity andcelebrate diversity together.

Dr. Ketna L. MehtaEditorEmail: [email protected]

EDITORIALDIGNITY FOR THE DISABLED


aWEshkar welcomes articles on issues of current interest in management, globally. We publish empirical papers, reviewpapers, executive experience-sharing, research notes, case studies and book-reviews. The official editorial address ofaWEshkar is :Dr. Ms. Ketna L. Mehta,Editor & Associate Dean, Research,Prin. L.N. Welingkar Institute of Management Development & Research.Lakhamshi Napoo Road , Matunga (Central Railway),Mumbai- 400 019, Maharashtra, India.Tel : +91 - 22- 24198387E-mail: [email protected] : www.welingkar.orgAll submissions for aWEshkar to be sent to [email protected]. The manuscript should have a cover page withauthor details, followed by an Abstract, 4 to 5 keywords, full paper, references and figures and tables if any. The manuscriptshould be typed in Times New Roman font size 12, with 1.5 line spacing and with margins of one inch on all sides. Thenormal size of a paper is about 5,000-7,000 words.(Joint) Authorship of Papers: Authors should testify to the authenticity and originality of their papers. In case a paper hasmore authors than one, each of them has to separately testify that they have contributed to the paper and that it is anoriginal creation by them. aWEshkar has a very strict anti-plagiarism policy and hence the authors are expected to submitonly authentic and original works to aWEshkar. Any changes in the authorship after the initial submission and declarationshould be supported by intimations to the Editor to that effect from the authors who are removed as well as those who areadded.Cover Page: Manuscript of a paper should have a cover page providing the title of the paper, the name(s), address(es),phone, fax numbers and e-mail address(es) of all authors and acknowledgements if any. In order to facilitate anonymousreview of the papers, please restrict the author-related information only to the cover page.Abstract: Following the cover page, there should be an 'abstract' page, which should contain the title of the paper, thesubtitle 'Abstract' and a summary of the paper in single space, not exceeding 150 words. The text of the paper should notstart on this page, but on a fresh page with the title of the paper repeated.References: References should be cited in the style prescribed in the Publication Manual of the American PsychologicalAssociation (4th ed.). Indicate the position of the reference in the text within brackets by the author's last name and theyear of publication; e.g.: '(Porter, 1980)' or incorporate it into a sentence, e.g.: 'as pointed out by Hannan and Freeman(1977)'. At the end of the text, references should be listed in the alphabetical order of the last names of the authors, with atitle REFERENCES. Examples of how the references are to be listed at the end of the paper are given below. (If it is a book): Porter, M.E. (1980) Competitive Strategy, New York: Free Press. (If it is an article in a journal): Hannan, M.T. and Freeman, J. (1977) The Population Ecology of Organizations,

American Journal of Sociology, 82 (5): 929-964. (If it is an article in an edited book): Kanter, R.M. (1988) When a Thousand Flowers Bloom. In B. Staw and L.

Cummings (eds), Research in Organizational Behaviour, pp.169-211, Greenwich, CT: JAI Press.Notes: Do not use footnotes. Minimize endnotes. If they are unavoidable, number them serially in the text using superscriptand list them together on a separate sheet under the heading NOTES immediately following the text of the paper. Notes arenot for citing a reference but for offering a significant explanation, which is important for understanding the text, but istangential to the main idea discussed therein.Figures and Tables: Each Figure/Table should be printed on a separate sheet. Figures and tables are to be separatelynumbered, titled and attached at the end of the text serially. The position of the figure or table should be indicated in thetext on a separate line with the words "Table 1 about here".Revised Manuscripts: At the end of the blind review process, the editor informs the author about the acceptance orrejection of the manuscript. On acceptance, the author is expected to incorporate the modifications suggested by thereviewers, if any, and submit a soft copy of the final revised manuscript within 12 days.Policy against simultaneous submission: Authors should ensure that the manuscript submitted to aWEshkar is notsimultaneously submitted to any other journal or publisher. Similarly, it should not be submitted anywhere else during thependency of the review process which will take about 3-6 months. Once a manuscript is accepted by or published inaWEshkar, it becomes the property of WE SCHOOL, whose permission is required for any operations covered by theCopyright Act.

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Abhijit P. Phadnis*

Creating Lasting Organizations: An Integrated Framework

*Abhijit P. Phadnis, Director, Giltedge Financial Counsel Pvt. Ltd.Email: [email protected]

MANAGEMENT IDEAS

ABSTRACT

Corporate form of business has enabled perpetual existence for firms. However, just the corporateform is not a sufficient guarantee for firms to last. What is needed is a robust core which would help thefirm to survive onslaught of time and competitive forces. This article deals with five vital pillars which inauthor's view could form the core of corporate longevity. The '5V framework' proposed in this articleconsists of vision, value proposition, value delivery, value creators and value system. They all need tobe addressed holistically. Further, each of these pillars has four vital aspects which need to be ad-dressed and have been briefly touched upon in this article. There is a need for an ongoing seniormanagement review to ensure that all these aspects are addressed holistically for cracks in one pillarcan threaten the long-term existence of a firm.

KEY WORDS: Corporate Longevity, Lasting Organization, Integrated Framework.

Modern corporate form has an inherent advantageof perpetual existence. A corporation is expectedto last for a period far longer than the life of theindividuals who created it. Separation of owner-ship from management, liquidity & value creationthrough a stock market listing and limited liabilityhave contributed in creating firms of a globalscale& reach. While the corporate form & struc-ture has inherent advantage of continuity, growthand scale, whether a firmusing the corporate formwould sustain & grow really depends on severalsofter aspects which have been embedded in itsDNA at the time of its foundation and how theyare valued & nurtured later as the organizationbecomes bigger. In the last few decades, we haveseen examples of human greed for money andpower which have risked existence of firms. The

societal response has been increasing regulationand more intense scrutiny by stakeholders andmedia. While regulations have their own part inensuring right behavior by firms, for them toachieve sustainable growth and a lasting impact,they need to follow an integrated approach whichgoes far beyond compliance. Further, fiercemarketplace and growing demands of customers& other stakeholders pose rising challenges forfirms in their journey to greatness and there is aneed for an integrated, holistic approach whichaddresses the core pillars & principles of sustainedvalue creation by a firm.

In this brief article, I propose an integrated frame-work which can provide a robust basis for firms tolook at various aspects in a holistic manner as theyare all important in creating a lasting organization.


This framework is woven around five importantfundamentals and I propose a 5V framework forthat purpose. Later in this article each of these Vshas been elaborated with some deliberation onvital aspects of each one of them.

a. VISION

Vision emanates from the core purpose forwhich the firm was created. Clarity of pur-pose and the power of vision have the abilityto seek commitment of large number ofindividuals in creating a lastinginstitution.While earning reasonable profit-ability has to be one of the core objectives ofany firm, it cannot be the purpose of itsexistence. The purpose must be somethinglarger, serving a genuine need of humanity.Firms which were created to meet frivolousneeds of people have had to mend their waysor face closure. On the other hand, if thecore purpose is powerful and meets genuineneeds of society, that vision is activelysupported by the society itself.

b. VALUE PROPOSITION

Every firm has to provide a demonstrablevalue through products and services thatmeet & exceed customer expectations. Whilethe customer need is sought to be met bymany competing firms, value propositiondeals with how uniquely a firm is able todemonstrate a distinct flavor of its offeringwhich makes a positive impact on the user.

c. VALUE DELIVERY

Value proposition must be backed by a solidvalue delivery mechanism. Imagine a firmcreates a wonderful product which meets oreven kindles latent needs of customers.However, it is not able to deliver the product

or service on time and in a consistent man-ner. It would create a very negative impacton the customers and the customers woulddrift away to competition. Value deliveryrequires a careful choice of structure,processes and technology which will help thefirm in fulfilling the customer need consis-tently, timely and in a cost effective manner.

d. VALUE CREATORS

Any organization is a living organism ofpeople who rally behind it and create value.A firm's ability to channelize the energy ofthese value creators has a direct bearing onits longevity. A significant part of the valuethat a firm creates is added by its vendorsand service providers too. While nurturingthe potential of employees is vital, it is alsovery important that a win-win is created withthese external associates of the firm.

e. VALUE SYSTEM

Value System emanates from the corebeliefs, attitudes, motives, desires, driversand the world view of the founder entrepre-neur. They together qualitatively shape theorganization and create a lasting impact onthe ethos, behaviour and longevity of thefirm.

In the following pagesvital aspects of each ofthe 5 Vs discussed above have been elabo-rated.

VISION

Vision of a firm arises from the purpose for whichit was created. It is, however, quite natural that asthe time passes and societal needs change, the'purpose' of the existence of the firm would alsochange and align with changing societal needs.




There are following four aspects of vision whichare vital:

original conception, the firm can be on agrowthpath for a very long period of time.

The impact on humanity

Due to information explosion, the customer hasbecome very discerning in terms of tastes and theimpact on humanity in the long term. This shift hasbeen very rapid in light of issues such as globalwarming and scarcity of resources. Firms whichcreate a positive impact on humanity wouldnaturally sustain over a much longer period.

VALUE PROPOSITION

The pillar of value proposition has four vitalaspects which have been discussed below:

Differentiation

With much easier access to technology for all,many goods and services stand the risk of gettingcommoditized. Differentiation has become veryimportant for firms to create pricing power andsurvive competitive onslaught.

Brand Management

Brands communicate a set of values & core

The zone of relevance

The potential zone of impact and relevance for afirm's products or services has a direct bearing onits longevity. Wider the zone of its relevance morewould be the possibilities of its longevity.

Kindness to earth

Earth's environment is under threat. Firms withofferings which are kind to the environment andwhose practices enable conservation of resourceshave an inherent strength to survive over a longperiod.

Offshoots for growth

If the firm's purpose and hence its vision are toonarrow, the firm would have restricted opportuni-ties for growth and stands the risk of gettingmarginalized as the socio-cultural, economic andtechnological shifts take their toll. Instead if thevision provides an opportunity to blossom intosomething bigger and even more relevant than its


offerings which the firm & its products stand for.A look at the brand will generate a certain image,perception and sentiments in the minds of theobserver! Brands need to be actively nurtured andnourished.

Customer Centricity & Alignment

More aligned is the firm to the needs of thecustomers and actively listens to its customers,greater the chance that it will enthrall the custom-ers with solid value. Once the customers knowthat the company is willing to listen, they will go allout to ensure that they give honest feedback withthe intention that the firm succeeds!

Unique Selling Proposition

Unique Selling Proposition is that feature whichwhen communicated to the customer succinctlyconveys the distinctiveness of the product orservice. Clear message increases the potential forthe product or service to make an impact.

VALUE DELIVERY

Great value proposition to the customers must bebacked by robust structure, process and technol-ogy to deliver value. Following are four vitalaspects of value delivery.

Capacity Management

It is vital to align capacity creation with themarket demands. Capacity includes aspects suchas manufacturing, distribution, storage and eventalent. Capacity need not be only created inter-nally. Access to capacity through key vendors canalso be cultivated by building strategic partner-ships with them.

Working Capital Management

Efficient internal processes are vital for usingcapacity which is already created and for smoothoperations. They help in ensuring that the cus-tomer is seamlessly serviced in a very predictableway.

Cost Management

Along with efficient working capital management,it is vital that firm manages its costs prudently.Cost structure and its drivers must be reviewedfrom time to time so that timely initiatives can betaken to ensure that customer is able to accessthe product or service in a very cost effectivemanner.

Risk Management

Many firms spend enormous energy in micro-managing costs but one risk could blow themaway. Risks are inherent to any business. How-ever, an integrated risk management frameworkcan help a firm in identifying and managing therisks proactively.



VALUE CREATORS

Reward & Recognition

Fair reward has to be a basis of engaging servicesof a human being and that is only the beginning ofrelationship. This fairness is a must throughout thejourney together. Unfortunately, this view is oftenrestricted only for the insiders i.e. the employees.The approach towards vendors is that of exploita-tion. This is a serious mistake. Further, apart fromreward, recognition for good performance is alsovital.

Opportunity to blossom

Reward & Recognition is simply the starting point.More vital is that individuals associated with thefirm whether as employees, service providers orvendors get an opportunity to blossom theirpersonality by way of new skills, knowledge andabilities.

Encouragement to Innovate & Experiment

Encouragement builds confidence. All peoplestakeholders, whether employees or vendors lookfor opportunities to Innovate & Experiment.Encouragement to do so can bring the best out of

them and in turn help the firm to garner a lot oflearning on the way which can be translated intocommercial success.

Emotional Ownership

We find lot of efforts on part of firms to convergethe interest of the employees with that of theshareholders through employee stock ownership.Even more important than financial ownership isthe Emotional Ownership of employees. EmotionalOwnership is the result of the respect for theindividuality of the employee and his or her contri-bution to the firm. Emotional Ownership needs tobe also fostered among the vendor fraternity forcreating a win-win.

VALUE SYSTEM

Value System forms the bedrock of any organiza-tion. Following four aspects are vital to demon-strating that a firm is indeed committed to a valuesystem which is fair to all stakeholders.

Compliance Commitment

Commitment to adhere to regulatory framework



applicable to the firm and governance frameworkthat it has voluntarily created should be withoutany exception. This commitment is able to attractstakeholders who can in turn commit to its growth& progress.

Balancing oversight and execution

One of the most vital aspects of governance is thebalance of power between the executive wing andthe independent directors. A firm that encouragesactive oversight by independent directors is doinga great service to its shareholders and to itself.This benign internal scrutiny is an inbuilt mecha-nism for a firm to be in business for a long time!

Dealing with conflicts of interest

When there are multiple stakeholders, conflict ofinterest among them is natural. Some of thestakeholders such as Directors and employees areinternal stakeholders and vendors, customers,shareholders and society at large are externalstakeholders. It is important for the internalstakeholders of a firm to demonstrate that theyresolve the conflicts ethically and without unduebenefits to themselves. The commitment that it willelicit from external stakeholders would be amaz-ing!

Transparency

While respecting business secrecy is important,transparent way of conducting business providesan assurance to all the stakeholders that the

business of the firm would be conducted in a fairmanner.

CONCLUDING REMARKS

These five core pillars and their componentsdiscussed above apply not only to a business firmbut also to a charitable organization or an NGO.These five pillars must be addressed on anongoing basis and the people at the helm of affairsmust put mechanism in place to examine how thefirm is doing in respect of each of these pillars. Asmentioned earlier, even one weak pillar can causecollapse of the organization and thus, each pillarmerits adequate attention.Stronger these pillars,longer would be the ability of the organization tosustain in the long-term. As any modern structureor building becomes older, we are required tocarry out their structural audit to examine howrobust the structure is and whether it requires anyrepairs or refurbishment. In case of any firm too,this assessment is required to be done on anongoing basis. This millennium is going to be thatof intense scrutiny. Every organization, institution,firm and even religions are being severely testedand examined by the people at large. Withinformation explosion and access, this scrutiny isgoing to be even more intensified. Before sub-jecting itself to the external scrutiny, it is importantthat every organization creates its own mechanismto examine whether each of its pillars is strongenough to carry it forward and for it to making alasting positive impact on humanity.



Asawari Bapat*

Disaster Management in Kautilya Arthasastra

*Asawari Bapat is Ph. D. (Sanskrit), Visiting Faculty, University of Mumbai.Email: [email protected]

INDIAN ETHOS

ABSTRACT

The term management is in vogue in our modern period. This concept of management came into industriallife at the end of the 19th century and in the beginning of the 20th century. The main objective of'management' was to acquaint the new comers to the then establishing industrial life. The term managementis as old as human civilization. The stone-age man managed many things like kindling of fire from flintstone, obtaining his prey with collective efforts etc. Thus, we can say that, the systematic approach forthe study of the subject 'management' came very late but the concept was there since the history of life.In Bharata (India) the concept of management persists since Vedic period. Systematic managementpractices are found in the Vedic literature. This literature elaborates the concept of disaster managementin Kautilya Arthasastra. This text is designed to run the biggest industry called 'nation'. Kautilya's bookdeals with the disasters faced by a nation. Hence, we shall understand the idea of disaster managementfrom the great guru of the science of polity, known as Kautilya.

KEY WORDS: Hazard, Disaster, Vyasana, Apatti, Vipatti, Pidana, Daivam, Manusam, Pana, Nirajana,Manusapatti, Suddhapatti, Amisra, Paramisra.

INTRODUCTION

ETYMOLOGY

The Encyclopedia of Disaster Management(2007) has quoted Oxford English dictionary,according to which the word 'disaster' is derivedfrom the 16th century word 'desastre1'. While theWikipedia Encyclopedia explicitly says, "The worddisaster came from Middle French; 'desastre' fromOld Italian 'disastro' originally came from Greek.Here the word is the combination of two Latinwords - 'Dis' and 'Astro' means bad star. Whilethe en.widipedia.org mentions, 'disaster is formed

on a star'2. Therefore, disaster can be simplyreferred to as the unforeseen calamities caused byplanetary.

Once again the, Encyclopedia of DisasterManagement (2007) quotes the Oxford Englishdictionary while defining disaster as, "Anythingthat befalls of ruinous or distressing nature; asudden or great misfortune, mishap ormisadventure; a calamity3."

The fear of disaster was there in the mind of livingbeings since their existence. This fear gave rise tomany mysterious practices. With the passage of


time, man realizes that the mysterious practices arenot enough to avert such unforeseen calamities.For that, they must think well in advance, thesolutions to avoid them. As a result, a verysystematic approach was taken towards it.

HAZARDS

Hazardous situation leads to disaster. Somescholars have classified calamities into two, viz.Hazards and Disaster.

"Hazards are dangerous conditions or events withpotential for injury, loss of life, and /or damage toproperty, agriculture or environment" (Modh,2006)4. They are categorized into two -

1. Natural (hazards with meteorological,geological, biological or extraterrestrialorigins).

2. Unnatural (hazards with human-caused ortechnological origins).

DISASTER

Prima facie, disaster is something which ispersonal. Say, for example, the death of an earningmember of a family is considered as 'disaster' forthe family. Disasters of different types occur whenhazards affect population at large.

Very few scholars have classified disaster asabove, but generally, both the words areconsidered synonymous. Thus, the Encyclopediaof Disaster Management (2007) broadly considersthree types of disasters -

1. The result of natural phenomena. Thisincludes earthquake, volcanic eruption,hurricane, tornado, avalanche or flood.

2. Anthropogenic origin - terrible accidents.

3. Hybride disasters - combination of

anthropogenic (man-made) events andnatural events such as spread of diseasesfrom a community in which the disease isendemic to a community which has no naturalimmunity5.

On this back drop now we will turn towards theidea of calamity in Kautilya Arthasastra (KA).

In case of Bharata (India), a systematic history ofmanaging the disaster goes back to 4th centuryBCA. In his Arthasastra, the completecompendium on the science of polity, Kautilya, thegreat guru of the science of polity, also famous asChanakya, alias Visngupta, has discussed this issuein a very systematic manner.

KAUTILYA'S IDEA ABOUT CALAMITY

We have seen that in modern times disasters aredivided into two - natural and unnatural. Kautilyacalls them vyasana. In Sanskrit, the words nipata,pidana, apatti / vipatti and vyasana are used forcalamity. Yet, the word vyasana means somethingwhich is caused by ill fate. One can correlate thiswith hazards or natural calamities. This papermainly deals with the natural calamities and willconclude with a cursory glance over manmade orunnatural calamities. Systematic categorization ofany subject is a peculiarity of Kautilya. Followingthis, he has categorized the vyasana, i.e. calamities,into two -

Daivam i.e. natural

Manusam i.e. manmade.

Daivam is indeed a very apt word used byKautilya long ago. Daivam means that which isdivine. Even the western scholars consider it as theact of god. We have already seen the etymology ofdisaster. Thus, it shows that all over the worlddisasters were considered as the result of



astrological or supernatural forces. In the fourthbook of KA, eight types of daivam or naturalcalamities are mentioned. They are fire (agni),flood (udaka), epidemics (vyadhi), famine

Vyasana

Flood

Fire

Bbeasts Snake

Epidemics

Draught

Mouse

Demon

(durbhiksa), rats (musaka), beasts (vyala), snakes(sarpa) and demons (raksamsi) 4.3.1).

For Kautilya, there is no control over the daivamor natural vyasana. But for manusavyasana, thoughmisfortune is responsible for them, he equallyblames human beings. Thus, for him, the calamitiesfall either by misfortune or by wrong policies(8.1.3). After mentioning them, he has warned theking that it was his duty to protect his subjectsfrom these calamities (4.3.2).

Let us understand the views of Kautilya regardingthe management of hazard.

1. FIRE

The eight calamities are once again listed in the8.4.1. Fire comes at the beginning. It is consideredas hazard which is caused by meteorological,geological, biological or extraterrestrial condition.It seems that Kautilya firmly believes on the idea,'prevention is better than cure', thus preventivemethods are discussed in the chapter 'rules of thecity' .

Preventive Measures

In summer cooking should be done outsidehomes or under supervision of ten familiescollectively or being protected by ten firefighting implements (4.3.3).

The roofs which are made up of grass ormats should be removed (2.36.19).

Those who make use of fire in theirprofession should stay at one place(2.36.20).

House owners should live near the frontdoors of their own houses, without gatheringat one place (2.36.21).

Collection of water jars should be placed inthousands on roads and at crossroads, gatesand in royal offices (2.36.22).

Kautilya is aware about the nature of people. Insociety, very few people are concerned with thecalamities that fall on the nation. It is a generaltendency to avoid one's own responsibility as acitizen; hence punishments for not serving in suchconditions are imposed in the Arthasastra.

Punishments

For the owner, not running to save the houseon fire, the fine is twelve panas (it's a silvercoin with ¼ part copper in it) and six panasfor the tenant (2.36.23).

In case fire is caused by negligence, the fine isfifty-four panas and the incendiary should beput to death by fire (2.36.24)

In case of fire, if aid in the form of five jars orone big jar of water, a trough (drona), aladder, an axe, a winnowing- basket, a hook,a hair-seizer and a skin bag (pakhal), thesethings are not provided then the punishment isone quarter of a pana (2.36.17).



The incendiary should be put to death by fire(2.36.25).

2. WATER

In all the calamities Kautilya tried to establish thecomparative importance of the calamities basedon the loss caused by them. In both the calamities,i.e. fire and water, according to Kautilya water isthe worst because fire may destroys half or onevillage, while flood affects many villages (8.4.4).

Preventive Measures

In rainy season, Villagers situated near watershould live away from the level of the floods(4.3.6).

They should keep a collection of woodenplanks, bamboos and boats (4.3.7).

They should rescue a person being carriedaway by the flood by means of gourds,skin-bags, canoes, tree-stems and ropebraids (4.3.8).

Punishment

Those who do not go to the rescue, the fineis twelve panas, except in case of thosewithout canoes (4.3.8).

Flood Warning

In modern period, in flood management, minor,moderate, major, local and significant river rise areconsidered as the types of flood. In significantriver rise, it is expected that the warning is to beissued when the normal level of water will exceedthe limit. The first point in the remedies in KA is,'Villagers located near water should live awayfrom the level of floods'. This indicates thatkeeping a constant watch on the water level as an

important point in management was taken care ofduring the period of Kautilya.

3. DISEASE

Preventive Measures

Magicians and others should counteract withsecret means

Physicians with medicines and holy asceticswith pacificatory and expiatory rites(4.3.13).

Animal Disease

The rite called as Nirajana* is to beperformed of shades and the belongings ofanimals

Particular deities are to be worshiped(4.3.16)

* Nirajana is a religious ceremony where light iswaved around the deity. In modern period it isfamous as Arti. It is also considered as thelustration of arms. It is performed by a king orgeneral in the month of Asvina. But etymologicallythe word Nirajana is - Nira means 'water' andAjana means 'touch'. Thus, it must have been theactual purification or cleansing of the place,person or object etc. but afterwards its religiousside that is mainly waving the lamp must havebecome important.

In disease, Kautilya compared the loss caused bydeath of a lay man and a chief person. For himthe loss of chief is not bearable. This is becausecommon people are on a very large number butthere is one chief among thousands, or not evenone. Because of the high degree of spirit andintelligence, a common man always depends onhim (8.4.11-12).



4. FAMINE

Between famine and disease, Kautilya opines thatdisease affects only one region and remedies canbe found for it, while famine afflicts the wholecountry and leads to absence of livelihood forliving beings which creates loss of the entiresociety (8.4.7)

Preventive Measures

In case of drought, the king should make astore of seeds and food stuff and showfavour to the subjects, institute the building offorts or water works such as constructingdams etc. with the grant of food, he shouldshare his provisions with subjects or entrustthe country to another king (4.3.17).

Should seek shelter with allies or causemigration of people in that region wherecrops have grown, or settle along the sea,lakes or tanks (4.3.18-19).

King should start sowings of grains,vegetables, roots and fruits along the waterworks or hunt deer, beast, birds, wild animalsand fish (4.3.20).

5. RATS

Managing rats or mice may appear strange. Fromancient period, Bharata was predominantly anagricultural country. Naturally, rats or mice wereconsidered as the greatest enemies. Mice were notonly enemies in ancient time but also in modernperiod. Mice are really very serious problem facedby many countries even today. They decimatefood on a large scale and are also responsible fordiseases like plague, leptospirosis etc. We can seeone example of terrified condition created by rat.On 23 June 2010, China faced a problem of rats.The river Yangtze got flooded on that day. The

water level rose in Dangling Lake. The floodflushed out rat holes around the lake triggering aliteral rat race. Tan Lulu, one of the employees ofNational Geographic News from WWFreported, "There are so many rats that you cankill three of them with one (strike). The reportalso mentioned the destruction caused by rats.According to that, rats have ravaged at least fourmillion acres (1.6 million hectare) of farmland byeating roots and steams of trees (http://news.National geographic.com/news, 28th Oct 2010).

Kautilya was aware of the destructive power ofrats and hence he has included them in thenational calamity.

Preventive Measures

Cats and mongoose should be let loose(4.3.21).

For catching or killing them, fine is twelvepanas, also for not restraining dogs, exceptin case of foresters (4.3.22).

Grains should be strewed smeared with themild of snuhi-plants or mixed with secretmixture (4.3.23).

Tax should be instituted on rats (4.3.24).

Same measures are suggested for locusts, insectsand birds etc.

6. WILD ANIMALS

Preventive Measures

Carcasses of cattle mixed with a stupefyingliquid or intestines of cattle filled withmadankodrava (stupefying medicine)(4.3.28).

Fowlers or hunters should dig pits and placecages (4.3.29).



Armoured men, with weapons in handsshould kill wild animals (4.3.30).

Incentive is suggested for those who will killwild animals (4.3.30).

Punishment

For one not going forth to help, the fine shallbe twelve panas. The same shall be thereward for the one slaying a wild animal(4.3.31-32).

7. SNAKES

Preventive measures

Experts in poison cure should act withcharms and medicines (4.3.35).

Persons coming together should kill snakes(4.3.36).

8. EVIL SPIRITS

Experts in Atharvaveda or in practices ofmagic should perform rites for destroying evilspirits (4.3.40).

Kautilya has fixed their hierarchy by distinguishingthem from their capacity of destruction.

Between flood and fire Kautilya considers floodthe worse, because fire burns half or a completevillage while flood drowns away many villages.(8.4.4). When an epidemics spreads, it coversonly some area but draught affects the entirecountry and may tax the entire life of people.

This discussion gives the clear picture that from ahorrendous past, the hazardous calamities wereexpected and they were taken care of.

MANUSAMA OR MAN MADECALAMITIES

Regarding man made calamities, there is acontroversy amongst the scholars of disastermanagement. But because Kautilya hasconsidered man made calamities as disaster theyare considered over here. In modern times, alongwith war, many other human caused disasters areembed, viz. chemical and biological weapons,terrorism, riots, urban structure, fires, transportaccidents, nuclear power accidents etc. Day byday this list is increasing. During the period ofKautilya, apart from war and the agitation ofsubjects, other human disasters did not exist.Obviously, Kautilya dealt only with war andinternal agitation. Following his style, once again,very systematic categorization of this man madecalamity is done by Kautilya. InVyasanadhikarikam, the topic which deals withcalamities, Kautilya has broadly divided humancalamities into two - 1. internal agitation 2.external agitation (8.2.2-3). The result of thesetwo calamities is four threats to a nation.

These four threats faced by the nation are:

1. External threat supported internally

2. Internal threat supported externally

3. External threat supported externally

4. Internal threat supported internally (9.5.3).

Surprisingly, in the inaugural speech of the Forumfor Integrated National Security (FINS).President Lt. Gen (Retd.) D. B. Shekatkarmentions the threats, which Bharata is suffering ofaccording to him they are -

1. External threats initiated by external sources;

2. External threats aided and abetted internally;

3. Internal threats in which foreign inimical powers try to fish in troubled water;



4. Internal inadequacies, which are also abetted byinimical forces from within the Country6.

So we can say that the threats mentioned by Lt.Gen (Retd.) D. B. Shekatkar is nothing but thetranslation of the sutras 9.5.3 of Kautilya.

2. Suppression by secret means -deploying treasonable high officer with aweak army for different expeditionssuch as destroying foresters, enemy'stown, establishing a district officer or afrontier officer in a region separated bya wilderness, so on and so forth. Onthese expeditions secret agents who arethere in the army should assassin himand should declare that he was killed atthe time of war (5.1.21-27).

This secret suppression includes the pleasuretrip, arranging parties etc. The list ofmeasures is very big but few things arementioned above.

Amisra - When treasonable and non-treasonablecome together the apatti which form is Amisra.Misra is mix. Here, there is no mixing oftreasonable and enemy (9.6.8).

Preventive measures

To contol Amisra, success should be soughtthrough the non-treasonable. Becausewithout support it is difficult to attain success(9.6.9).

Paramisra - When allies and enemies cometogether then Paramisrapatti (9.6.11).

Here success is to be achieved by allies.This is because it is easy to establish peacewith ally and not with an enemy (9.6.12).

The preventive measures or how to tackle theseapattis are discussed in full length in the book.

Rather, for all types of threats, many measuresare suggested by Kautilya. He firmly believes inthe ideology that 'people follow their leader'.Thus, in the list of suggestions for monitoring


The classification of the dangers connected withtraitors and enemies is done by Kautilya. Theyare,

Suddhapatti - Apatti from treasonable and fromthe enemies. These are two types of Sudhapatti(9.6.1).

Preventive measures

To prevent this, king should not use forceagainst the citizens (9.6.2) (But apart fromforce, what measures are to be used is notmentioned clearly). Why force is not used isexplained by Kautilya. According to himforce cannot be used against many peopleand in any case if it is used, then Kautilyahesitates about its result. Rather, he fears thatit may cause another disaster (9.6.3-4). Atthe same time he strongly supports the use offorce against the leaders of these people.This force is categories as,

1. Stratagem through kinsmen - In this typeof punishment seducing close relatives,such as real brother, son from a maidenor wife of the person, against him (5.1.1-20).

Manusapatti

Suddhapatti ParamisraAmisra


internal agitation, training of the king comes first.Apart from that, appointing spies for surveillanceeverywhere within the country and outside thecountry, appointment of village officers etc. aresuggested. In external agitation, once againappointing spies to create rift between enemycamps, securing friendship with loyal kings,keeping army and economy strong to check boththe agitation, such are the suggested measures. Weare not going deep into it as it all comes underscience of polity; only a few examples arementioned above. This will be another topic ofresearch. But one thing is inexorable that naturaland man-made both the disasters were discussedby Kautilya.

CONCLUSION

Arthasastra is a compendium of polity. Modernconcept of management was not in practice at thattime. Yet, without management, nothing is possible.Kautilya's concept of disaster definitely goes withthe modern 'management' ideas.

If "Disaster Management" is a continuous and anintegrated process of planning, organizing,coordinating and implementing measures than byascertaining the calamities in the nation, the firststep of management is taken by Kautilya.

Once the calamities are fixed, mitigation i.e.reducing the risk begins. In both the calamitiespreventive measures are mentioned by Kautilya.

Resilience is an important point in disastermanagement. Dictionary meaning of the wordresilience means 'cheerful condition'. While theDisaster Management Act, 2005 of our countryand also from United Nations Strategy for DisasterReduction (UNSDR) publication 2009 says, theability of a system, community or society exposedto hazard in a timely and efficient manner, including

through the preservation and restoration of itsessential basic structures and functions. Thus byany means resilience or re-bringing that same goodcondition which was there prior to the calamityshould be the aim of affected country. This ispossible only when the suffered ones aresupported morally as well as monetarily. In case ofdraught, clear references of rehabilitation areavailable.

We have seen that at personal level, disaster iscaused when the earning member suddenly dies.In such condition, support should be given to thatsuffering family. There is a mention of such supportin Arthasastra on both the levels, viz. personal andnational. Kautilya has clearly stressed that ifsomeone dies on duty, the sons and wife shouldget food and wages and their minor children, oldand sick persons should be supported. Kingshould grant them money (5.3.28-30). Thus onboth the levels, viz. personal and national Kautilyahas thought of resilience.

From all the above points, we can say thatArthasastra, the very old text on polity has a goodapproach to management and it successfully dealtwith the disaster management as well.

REFERENCES AND BIBLIOGRAPHY

1. Encyclopedia of Disaster Management,Introduction to Disaster Management, 2007,ch. 1, p.

2. Encyclopedia of Disaster ManagementIntroduction to Disaster Management, Ch 1,Pg 2.

3. Encyclopedia of Disaster ManagementIntroduction to Disaster Management, Ch 1,Pg 1.



4. Modh Satish, Disaster Management, 1stpublication, 2006, Pg 3.

5. Souvenir on Rashtra Raksha, 2010, Pg.22.

6. www.en.wikipedia.org/wiki/Disaster

7. Kautiliya Arthasesstra Translated by Kangle,R. P, 2nd Edi, University of Mumbai, 1972.

8. Encyclopedia of Disaster Management,Introduction to Disaster Management, Boardof Editors - Prof. Priyaranjan Trivedi, JnandaPrakashan (P&D) in association with IndianInstitute of Disaster Management, New Delhi- 110 002, 2007.

9. Encyclopedia of Disaster Management, M.H. Syed, Himalaya Book Pvt. Ltd,"Ramdoot" Dr. Bhalerao Marg, Girgaon,

Mumbai - 400 004, 1st Edi, 2008.

10. Modh Satish, Citizens Guide to DisasterManagement, Macmillan India Ltd, 1stpublished, 2006.

11. Murthy Raman K, Disaster Management,Dominant Publishers & Distributors, NewDelhi - 110002, Revised - 1st Edi, 2004.

12. Reddy Ravindra K, Ramaniah Y. V. KumariKrishna A, Subbiah S., Natural Hazards andDisasters - Essays on Impacts andManagement (International Conference Vol.I), Department of Geography, Shri.Krishnadevrai University, Anantpur, AndhraPradesh, India, February 2009.

DIACRITICAL MARKS

a - aa, t- ta (ì), s - sh (Me), n - na (Ceæ), u, s - <e, m-ced


Q U O T E S

Everytime you smile at someone, it is an action of love, a gift to that person, a beautiful thing.Mother Teresa

Good human relations not only bring great personal rewards but also are essential to the successof any enterprise

JRD Tata

Most of our troubles are due to poor implementation, Wrong priorities and unattainable targetsJRD Tata


Can Life Satisfaction be predicted by Emotional Intelligence,Job Satisfaction and Personality type?

ABSTRACT

The present study examines the role of Emotional Intelligence, Personality and Job Satisfaction indetermination of Life Satisfaction. Data was collected using a battery of tests from two hundred middleand senior level managers who completed the MSCEIT test of EI, NEO Personality scale, Satisfactionwith Life Scale and the Index of Job Satisfaction. Results indicated that there was no significant correlationbetween aspects of Emotional Intelligence and Life Satisfaction scores. A significant positive correlationwas seen between Life satisfaction and Job Satisfaction (r= 0.34, p<01), Extraversion (r= 0.31, p<01)as well as Conscientiousness (r=0.22, p<01). Neuroticism was found to have significant negativecorrelation with Life Satisfaction scores (r= - 0.24, p<01). Multiple regressions analysis results led toemergence of Job Satisfaction (Adj R2 = 0.11) and Extraversion (Adj R2 = 0.17) as positive predictorsof Life Satisfaction.

KEY WORDS: Performance based Emotional Intelligence, Life Satisfaction, Big Five Personality, and JobSatisfaction.

Deepika Dabke*

*Deepika Dabke, Faculty, IBS Business School, Mumbai, India.Email: [email protected]

RESEARCH

According to Eleanor Roosevelt "Happiness is nota goal...it's a by-product of a life well lived."Positive Psychology has emphasized on thesystematic study of what leads to happiness.Happiness as measured in terms of LifeSatisfaction has been a subject of extensiveresearch for the past many decades. Thepopularity of the concept can be attributed to itsunderpinning to positive living and its associationto Subjective Well-being (SWB). SWB is aphenomenon that includes people's emotionalresponses, domain satisfactions, and globaljudgment of life satisfaction. Researchers have

typically distinguished between three componentsof SWB, namely, pleasant affect, unpleasantaffect, and Life Satisfaction (Andrews andWhitney, 1976; Diener, 1984). Life Satisfactionrepresents a global cognitive evaluation orjudgment of one's satisfaction with his or her life.

Numerous studies have been conducted to assessthe relationship between Life Satisfaction andcritical variables such as age (Cummins, 1995),personality dispositions (Diener et al, 2003), goalattainment (Higgins et al, 1997). However mostof these studies are conducted taking a sample


from an individualistic culture and generalizing theresults to the collectivistic culture based societies.This can lead to serious misunderstandings of"what makes one happy" and have serious bearingon initiatives designed or advice provided byMental Health Practitioners as well as HumanResource Teams. An aspect such as EI also has tobe understood in the light of cultural milieu. Thusthe current study aimed to examine the relationshipbetween life satisfaction and other significantpredictors in a collectivistic society. The mainobjectives of the study were as follows:

To examine the linkage between LifeSatisfaction and Emotional Intelligence usingthe MSCEIT, a performance-based measure.

To study the association between Personalityvariables and Life Satisfaction judgments.

To explore the association between Jobsatisfaction and Life satisfaction.

Emotional Intelligence as defined by Mayer et al(2002) as is "the capacity to reason aboutemotions and of emotions to enhance thinking". Anumber of studies have found EI to be low tomoderately positively correlating with LifeSatisfaction (Ciarrochi et al, 2000; Brackett &Mayer, 2003). The role of Culture and Personalityhas also been the focus of a various studies(Diener et al, 2003, Suh et al, 1998). It can beexpected that individuals with higher EmotionalIntelligence, who are better at understanding andregulating their emotions, have a betterunderstanding of the environment around them.This leads to a better emotional reaction to eventsas well as people. Such individuals may be betterable to resist any threats to positive self-esteem

and are consequentially better able to enhance andmaintain positive well-being.

Most of the EI research and the findings thereofget influenced by the model of EI to which theresearchers show an allegiance and the tool that isused for this purpose. Broadly EI can beunderstood in terms of the Ability Model or theMixed Model (Mayer and Salovey, 2000). TheMixed models are those conceptual frameworksof EI which expand the concept beyond cognitiveabilities and look at it as an assimilation of anumber of non-cognitive/ personality traits.Models given by Goleman (1995) and Bar-On(1997) represent the mixed models of EI. Most ofthe self-report tools drawing from the mixedmodels show a significant correlation withpersonality traits and are therefore criticized ashaving low predictive ability. In spite of statisticalsuperiority and predictive ability of theperformance-based tools drawing from Abilitymodels of EI (Brackett and Salovey, 2006), thereis a paucity of Indian studies using this measures.This can be mainly attributed to the consensusbased scoring system of the MSCEIT scale, oneof the most prominent tools, which has beenderived from data based on the westernpopulation. The current study aimed at adding tothe existing knowledge base by creating localnorms for the MSCEIT test, as prescribed by thetest authors.

SWB has also been associated with internalvariables such as personality traits. Personalitytheorists have proposed two types of explanationsabout the Personality and Life Satisfactionlinkages; the Temperamental approach, where intraits such as Neuroticism and Extraversion are

Can Life Satisfaction be predicted by Emotional Intelligence, Job Satisfaction and Personality type?


directly known to relate to Life Satisfactionbecause they represent enduring affectivedispositions (Heller et al, 2004). The secondapproach is the Instrumental approach thatfocuses on actions and behavioral patterns linkingpersonality to life satisfaction. For example,extroverts tend to socialize more frequently thanintroverts, which in turn lead to greater positiveaffect and therefore more positive estimation oflife. Thus it has been suggested that extraversionand neuroticism provide the primary links betweenPersonality and Life satisfaction.

Another factor of interest for researchers has been

Job Satisfaction. Job Satisfaction (JS) can beunderstood in terms of the definition given byHoppock (1935) as - any combination ofpsychological and environmental circumstancesthat cause a person to say truthfully, - I amsatisfied with my job. Tait, Padgett and Baldwin(1989) provided the first meta-analytic estimateof the relationship between job satisfaction andlife satisfaction showing positive associationbetween the two constructs.

The relationship between Life satisfaction and thevarious variables, as hypothesized in this studyhas been presented in Figure 1.

Figure 1: Relationship between Life Satisfaction, EI, Personality and Job Satisfaction



EI subsuming it positive influence on the ability tohandle and regulate emotions in self and otherswas expected to emerge as a positive predictor ofLife satisfaction. Similarly Extraversion andAgreeableness due to their positive impact onInterpersonal relationships were expected to bepositively associated to Life Satisfaction.Conscientiousness as understood from a Big Fivepersonality model perspective is related toextensive planning, goal orientation and superiorexecution. This is in turn can create a better senseof control for the individual yield to a positiveinfluence on Life Satisfaction. In today'scompetitive world work roles hold great value, asit is a major source of positive self esteem andenhanced social status. Thus it can be expectedthat feeling of job satisfaction will positivelycontribute to Life Satisfaction.

HYPOTHESIS

The hypotheses for the current study can thus besummarized as follows:

1. Emotional Intelligence is positively associatedwith Life Satisfaction Judgments.

2. Extraversion, Agreeableness andConscientiousness are positively associatedwith Life Satisfaction whereas Neuroticism isnegatively associated with Life Satisfaction.

3. Job Satisfaction is positively associated withLife Satisfaction.

METHODOLOGY

SAMPLE

The sample comprised of 200 middle level/seniorlevel executives who were functioning as group

leaders. Participants' ages ranged from 35 to 58years, with the average age of 46.74 years (SD =4.14). Out of the 200 executives, 38 (19 %)managers were female managers and 162 (81 %)were males. 53 % of the executives hailed fromthe private sector, 23 % from the public sector and24 % from multinationals. 54.5 % of theparticipants belonged to the manufacturing sector,23 % belonged to the service sector, 16 %belonged to the Banking and Insurance Sector and6.5 % belonged to IT and Telecommunicationssector. The average years of service put in by theparticipants were 23 years (S.D = 4.69).

MEASURES

EMOTIONAL INTELLIGENCE (EI)

EI was measured by the MSCEIT V.2 test (Mayer2002). The MSCEIT is a 141 item scale whichyields a Total score, two area scores and fourBranch scores. For the current study the OverallEI score were considered. The MSCEIT has a fullscale reliability of .91 with area reliability of .90(EEIQ) and .85 (SEIQ). Brackett and Mayer(2003) found a test-retest reliability for the full-scale MSCEIT V2.0 of r = .86. Branch scoresreliabilities range from .74 to .89. The Cronbach'salpha value of the current sample was found to be0.72.

PERSONALITY

Personality was measured with the Big Fivetaxonomy using the Costa - McCrae's Big FivePersonality Scale (NEO-FFI) (Costa, McCrae,1992) version was used in this study. The fivepersonality factors that are measured using NEO-FFI scale are Neuroticism, Extraversion,Openness to experience, Agreeableness and



Conscientiousness. The NEO-FFI scales showcorrelations of .75 to .89 with the NEO-PIvalidimax factors. The values ranged from 0.68(A) to 0.86 (N). The scale alpha reliabilities forthis sample were .88 (Neuroticism), .81(Extraversion), .74 (Openness), .77(Agreeableness) and .87 (Conscientiousness).

JOB SATISFACTION

Overall job satisfaction was measured by Index ofJob Satisfaction developed by Brayfield - Rothe(Brayfield and Rothe 1951). This 18 item attitudescale was constructed by a combination ofThrustone and Likert scaling method. Respondentsare expected to select one option from a five pointrating scale ranging between Strongly Agree toStrongly Disagree. The scale has a high index ofreliability and high coefficient of correlation of .87.The Cronbach Alpha value for the current samplewas 0.82.

LIFE SATISFACTION

Life Satisfaction was measured by SatisfactionWith Life Scale (SWLS) developed by Diener(Diener, 1984). Life Satisfaction is a globalassessment of a person's quality of life accordingto his/her chosen criterion. It is a five item scalewhich measures the cognitive aspect of subjective

well being. It has a reliable coefficient exceeding0.80 and a two months test-retest reliability of0.82. The Cronbach's alpha for the current scale0.86.

PROCEDURE

The measures were administrated to theparticipants.

Developing Local Scoring for MSCEIT

MSCEIT is scored according to the consensusscoring method. The test authors have devisedscoring patterns both by general consensus andexpert scoring. In the current study a generalconsensus method was followed. The proceduralsteps as recommended in the "Developing LocalNorms' sub-section of the "About the Mayer -Salovey - Caruso Emotional Intelligence Tests(MSCEIT's)" section on the web site http://www.unh.edu/Emotional-Intelligence/index wereadhered to in order to be able to score eachparticipant according to the consensus method.

RESULTS

A Pearson's Product Moment Correlationcoefficient was computed to assess therelationship between Life Satisfaction and the EI,Personality Variables as well as Job Satisfaction.

Table I: Correlation between Life Satisfaction, Emotional Intelligence, Personality variablesand Domain Satisfaction (N=200)

**Correlation significant at p < .01 level (1-tailed), * Correlation significant at p < .05 level(1-tailed).Note: EI= Emotional Intelligence, N= Neuroticism, E= Extraversion, O= Openness

to Experience, A= Agreeableness, C= Conscientiousness, JS= Job Satisfaction.


EI N E O A C JS

Life Satisfaction 0.04 -0.24** 0.31** 0.03 0.12 0.22** 0.34**


Table 1 specifies the association between LifeSatisfaction and other variables in question.

Contrary to the expectation, Life Satisfactionshowed a non-significant correlation withEmotional Intelligence (r= 0.04, ns). Past studieshave shown a low positive correlation between EIscores and measures of Life Satisfaction(Ciarrochi, Chan, & Caputi, 2000; Martinez-Pons, 1997; Mayer et al., 2000). Howevercurrent study failed to ascertain this relationship.This is an important finding given that most of thestudies in the Indian context have reported findingsbased on self-report measures. The strong overlapbetween self report measures of EI andPersonality measures has left researchers with adoubt of whether the association between EI andLife satisfaction is more a function of personalitypredispositions or the core EI abilities. The currentfindings challenge the significance of EI in stableperceptions such as Life Satisfaction. In thecollectivistic society, interpersonal goal attainmentand harmony are the most valued aspects for ahappy life. Instead of focusing on individualfeelings, aspirations and needs, collectivisticcultures promote "sacrifice of the small self toaccomplish the Great self" (Lu et al, 2001). As aresult Life Satisfaction would depend more on theattainment of interpersonal harmony. Thus the firsthypothesis that Emotional Intelligence is positivelyassociated with Life Satisfaction Judgments wasrejected.

As seen in Table I, Life Satisfaction scoresshowed a significant positive correlation with JobSatisfaction (r= 0.34, p<.01), Extraversion (r=0.31, p<.01) and Conscientiousness (r= 0.22,p<.01). It also showed a significant negativecorrelation with Neuroticism (r= 10.24, p<0.01).No significant correlation was seen withAgreeableness and Openness to Experiencedimensions of the Big Five. These resultscorroborate with earlier studies which have foundstrong associations between Personalitydimensions and Life Satisfaction estimations. Thushypothesis 2 that Extraversion, Agreeableness andConscientiousness are positively associated to LifeSatisfaction whereas Neuroticism is negativelyassociated to Life Satisfaction was supported to alarge degree.

Life Satisfaction scores showed a significantpositive correlation with Job Satisfaction (r= 0.34,p<0.01). These results are in line with earlierstudies (Tait et al, l989, Heller et al, 2004). Thusthe hypothesis 3 that Job satisfaction is positivelyassociated with Life Satisfaction was accepted.Another question examined in the study was "whatpredicts Life Satisfaction?"

Table II presents the findings of a multipleregressions analysis conducted

A step-wise multiple regressions analysis was

Table II: Multiple Regressions Analysis predicting Life Satisfaction

β

**Correlation significant at p < .01 level * Correlation significant at p < .05 level


Steps R2 Adjusted AR2 F ValueVariables1 Job Satisfaction 0.29 .12 0.11

2 Extraversion 0.25 .18 0.17F (1,197) = 14,50P<.01


applied to identify predictors of Life Satisfaction.The analysis indicated that two predictorsexplained 18 % of the variance (R2=.18, F(1,197) =14.50, p<.001). Job Satisfactionsignificantly predicted Life Satisfaction (? = .29,p<.001) as did Extraversion (? = .25, p<.001).The personality correlates namely Neuroticismand Conscientiousness, although significantcorrelates, failed to emerge as significantpredictors of Life Satisfaction. Thus in the currentsample, Life Satisfaction judgments seem to bebased on perception of well- being at the workplace and the inherent disposition towards positiveaffect and socialization.

DISCUSSION

The main objective of the current study was toascertain the role of Emotional Intelligence,Personality and Job Satisfaction in LifeSatisfaction judgments. Results indicated norelationship between EI and Life Satisfaction. JobSatisfaction and Extraversion emerged as positivepredictors of Life Satisfaction. The lack ofcorrelation between EI and Life Satisfaction in thecurrent sample could at least partly be attributedto the collectivistic cultural representation of thecurrent sample.

Culture has been proposed to have a significantimpact on feeling of happiness (Lu and Shih,1997) and consequently on Subjective Well Being(Chiasson, Dube and Blondin, 1996). Onedimension of culture that has been particularlyuseful in identifying systematic differences in theprocesses underlying SWB is individualism versuscollectivism (Triandis, 1989). This dimensiondefines the degree to which people view self as anautonomous, self sufficient entity. In anindividualistic culture, individuals typically attempt

to differentiate themselves from others.Consequently, feelings and emotions weighheavily as predictors of Life Satisfaction (Suh,Diener, Oishi and Triandis, 1998). In collectivisticculture however, the central goal of an individualis not to distinguish himself or herself from othersbut to maintain harmony with them. Onespersonal desires often are subordinated to thoseof the group. Because of the lessened importanceof autonomy, feelings, emotions and otherthoughts experienced by the individuals are seenas less important determinant of behavior.Consequently, feelings about self and emotionsweigh less heavily on satisfaction judgment incollectivistic society. Similar findings have beenreported by Thingujam (2011), where inassociation between Life Satisfaction and EI didnot remain significant after controlling for eitherpositive or negative affect or personality. A similarpattern of results was also found between AsianAmerican and White American students in the US(Suh et al., 1998).

Personality has been one of the most consistentpredictors of Subjective Well-being (for e.g.Watson and Clark, 1997). Some researchersargue that Extroverts are happier because ofgreater personality environment fit (Diener,1984). According to this explanation, becauseExtroverts are more comfortable and happy insocial situations they experience greatersatisfaction from social interactions. Heady andWearing (1989) proposed a - dynamicequilibrium theory in which personality determinesbaseline levels of emotional responses. Eventscan move people above or below this baselinebut they will in time return to this stable set point.The current study reiterates the earlier finding and



is in line with the Top Down model (David et al,1997) which emphasizes the role of dispositionalfactors such as personality on Life Satisfactionjudgments. The Agreeableness trait failed to showa significant correlation with Life Satisfaction. Anagreeable individual is compassionate, goodnatured and eager to co-operate and avoidsconflict is said to be an agreeable person. If thecurrent findings are understood in the light ofcollectivism, this a surprising finding as high degreeof agreeableness would lead to betterinterpersonal relationship which in turn can raisethe perception of Life Satisfaction. One possibilitycould be that executives may not reap verypositive benefits of being agreeable. McClellandand Boyatziz's (1982) research has shown that ahigh need for affiliation, a component of A, can bedetrimental to the career of managers because itmay interfere with their ability to make difficultdecisions affecting subordinates and co-workers.Barrick and Mount (1993) found thatAgreeableness was the predictor of poorperformance in managers afforded high autonomy.Thus agreeableness may in turn lower lifesatisfaction judgments rather than contribute to it.However these findings call for a systematic probein associative value of the two constructs.

Job Satisfaction (JS) emerged as the strongestpredictor of Life Satisfaction (LS). These findingsare not surprising given the centrality of the workrole in one's life. Employees today have beenworking longer hours and spending less time withtheir families indicating that boundaries betweenwork and life are blurring (Heller et al, 2004).Individuals also derive a sense of purpose andmeaning as well as a sense of identity from theirwork. Hence a strong association between JS and

LS obtained in the current study as well as in arecent quantitative review is hardly surprising. Pastresearch has pointed to the fact that people domake use of domain satisfaction information whenmaking overall satisfaction (Schwarz, Strack andMai, 1991). This point out more towards thebottom-up approach tries to address how externalevents, situations and demographic variablesinfluence feeling of well-being.

The results also question the wave of excitementbuilt around the predictive value of EI. While EIcan be a positive impact on interpersonalrelationships and subsequently on subjective wellbeing, it does not seem to consistently stand up tostrong quantitative scrutiny. It also cautionspractitioners against the rampant advocating EI asa one stop solution to all positive living. Thefindings can thus be summarized in figure 2 and 3.

Figure 2: Tested Model

Figure 3: Predictors of Life



The findings of the current study are of significantvalue for Talent management teams and HumanResource Department since the investment inemployee welfare activities not only is likely tohave engaged and loyal work force but a happier,healthier work force ensuring higher levels ofproductivity and efficiency. Having said this otherimportant variables could also be in play duringLife Satisfaction judgments and require systematicprobe. The study also questions the blindgeneralization of findings emerging out of studiesconducted on the western population especially incase of cultural sensitive constructs such asEmotional Intelligence, Life Satisfaction anddomain satisfaction. An in-depth study of culturewith respect to important life outcomes isadvocated to truly answer the question "whatmake our people happy?" to promote positiveliving.

LIMITATION

The current study was conducted with workingindividuals, primarily senior executives. Thus thegeneralizability of the findings is limited. WhileMSCEIT V2 is an extensively researched tool, anIndian adaptation may lead to a better predictivevalidity of the instrument. Finally, the findings werebased on paper pencil tools and can immenselybenefit by inclusion of qualitative tools such asobserver records, focus group discussions.

CONCLUSIONS

To summarize EQ did not correlate with LifeSatisfaction (LS) indicating that LS depends onfactors other than ability to perceive, regulate,understand and manage emotions in self andothers. In keeping with the personological

approach, three out of the five personality traitsform the Big Five factors viz. Extraversion,Neuroticism and Conscientiousness showedsubstantial association with global LifeSatisfaction. Job Satisfaction emerged as thestrongest predictors of Life Satisfaction followedby Extraversion. Thus it can be concluded thatboth personality factors as well as domainsatisfaction become important contributor to LifeSatisfaction.

REFERENCES

1. Andrews, F. M. & Withey, S. B. (1976).Social indicators of well being. New York:Plenum.

2. Bar-On, R. (1997). Bar-On EmotionalQuotient Inventory: technical manual.Toronto: Multi-Health Systems Inc.

3. Barrick, M. R., & Mount, M. K. (1993).Autonomy as a moderator of therelationships between the Big Fivepersonality dimensions and job performance.Journal of Applied Psychology, 78, 111-118.

4. Brackett, M. A., & Mayer, J. D. (2003).Convergent, discriminant, and incrementalvalidity of competing measures of emotionalintelligence. Personality and SocialPsychology Bulletin, 29, 1147-1158.

5. Brackett, M. and Salovey, P. (2006).Measuring emotional intelligence with theMayer- Salovery-Caruso EmotionalIntelligence Test (MSCEIT). Psicothema2006. Vol. 18, pp. 34-41.

6. Brayfield, A. H., & Rothe, H. F. (1951). AnIndex of Job Satisfaction. Journal of AppliedPsychology, 35, 307-311.



7. Chiasson, N., Dube, L. & Blondin, J.(1996). Happiness: A look into the folkpsychology of four cultural groups. Journal ofCross-Culture Psychology, 27, 673-691.

8. Ciarrochi J. V., Chan A. Y. and Caputi P.(2000). A critical evaluation of EI Construct:Personality and Individual Differences, 28,539-561.

9. Costa, P. T. Jr. & McCrae, R. R. (1992).Revised NEO Personality Inventory(NEO_PI_R) and NEO Five-FactorInventory (NEO-FFI) professional manual.Odessa, FL: PAR.

10. Cummins, R. (1995). On the trail of goldstandard for subjective well-being. SocialIndicators Research, 35, 179-200.

11. David, J. P., Green, P. J., Martin, R., & Suls,J. (1997). Differential roles of neuroticism,extraversion, and event desirability for moodin daily life: an integrative model of top-downand bottom-up influences. Journal ofPersonality and Social Psychology, 73, 149-159.

12. Diener, E. (1984). Subjective well-being.Psychological Bulletin, 95, 542-575.

13. Diener, E., Oishi, S., & Lucas, R. E. (2003).Personality, culture, and subjective wellbeing:Emotional and cognitive evaluations of life.Annual Review of Psychology, 54, 403-425.

14. Goleman, D. (1995). Emotional intelligence.New York: Bantam Books.

15. Headey B, Wearing A. (1989). Personality,life events and subjective well-being:Towards a dynamic equilibrium model.Journal of Personality and Social Psychology,57, 731-749.

16. Heller, D., Judge, T. A., & Watson, D.(2002). The confounding role of personalityand trait affectivity in the relationship betweenjob and life Satisfaction. Journal ofOrganizational Behavior, 23, 815-835.

17. Higgins, E. T., Shah, J., & Friedman, R.(1997). Emotional responses to goalattainment: Strength of regulatory focus asmoderator. Journal of Personality and SocialPsychology, 72, 515-525.

18. Hoppock, R. (1935). Job Satisfaction. NewYork: Harper.

19. Lu, L. & Shih, J. B. (1997). Sources ofHappiness: A Qualitative approach. Journalof Social Psychology, 137, 181-187.

20. Martínez Pons, M. (1997). The relation ofemotional intelligence with selected areas ofpersonal functioning. Imagination, Cognitionand Personality, 17, 3-13.

21. Mayer J. D., Salovey P and Caruso D. R.(2002). Test User Manual. Toronto. Canada,MHS.

22. Mayer, J. D., Salovey, P. & Caruso, D. R.(2000). Models of emotional intelligence. InR. J. Sternberg (Ed.), Handbook of humanintelligence. Cambridge, UK: CambridgeUniversity Press.



23. McClelland, D. C. and Boyatzis, R. E.(1982). The leadership motive pattern andlongterm success in management, Journal ofApplied Psychology, 67(6), 737-43.

24. Schwarz, N., Strack, F., and Mai, H. I.(1991). Assimilation and contrast effects inpart-whole questions sequences: Aconversational logic analysis. Public OpinionQuarterly, 55, 3-23.

25. Suh, E., Diener, E., Oishi, S., & Triandis, H.C. (1998). The shifting basis of lifesatisfaction judgments across cultures:Emotions versus norms. Journal ofPersonality and Social Psychology, 74, 482-493.

26. Tait, M., Padgett, M. Y., & Baldwin, T. T.(1989). Job and life satisfaction: Areevaluation of the strength of the relationship

and gender effects as a function of the dateof the study. Journal of Applied Psychology,74, 502-507.

27. Thingujam, N. (2011). EmotionalIntelligence and Life Satisfaction: Re-examining the Link and Mediating Role ofAffectivity and Personality in India. Journalof the Indian Academy of AppliedPsychology. 37 (1), 27-34.

28. Triandis, H. C. (1989). The self and socialbehavior in differing cultural contexts.Psychological Review, 96, 506-520.

29. Watson, D. & Clark, L. A. (1997). Themeasurement and mis-measurement ofmood: Recurrent and emergent issues.Journal of Personality Assessment, 86, 267-296.


Q U O T E S

We must think and act like a nation of a billion people and not like that of a million people.Dream, dream, dream!

Dr. A. P. J. Abdul Kalam

When you speak, speak the truth; perform when you promise; discharge your trust... Withhold yourhands from striking, and from taking that which is unlawful and bad...


What actions are most excellent? To gladden the heart of a human being, to feed the hungry, tohelp the afflicted to lighten the sorrow of the sorrowful and to remove the wrongs of injured



Pest and Disease Management of Apple Orchards ofHimachal Pradesh : A Potential Area for Optimization

ABSTRACT

This paper is an extract from a study titled "Impact of Skill Management on the Sustainability of AppleOrchards in Himachal Pradesh". The study attempted to explore and understand the sustainabilityaspects of the Himachal Pradesh apple industry. It did so by studying the farm practices of a sample ofapple orchardists from the two highest apple producing districts of the state- Shimla and Kullu. The aimbeing, to objectively analyze the farm management practices to uncover areas of operation which arenot yet optimally managed but show potential in creating a positive impact on the production, productivity,profitability and sustainability of the apple industry of Himachal Pradesh by skillful management. Thestudy was carried out from a manager's perspective rather than an agro-scientist's.

Primary data was collected with the help of a survey which was conducted in 2009 in both the districts.The sample size was 100; 50 from each district. Findings of the survey were further supplemented withsecondary data. In addition to this, expert opinion and an extensive survey of literature was carriedout.

KEY WORDS: Apple Industry, Himachal Pradesh, Skill Management, Customized Training, Optimization andSustainability.

Vandana Varma* and Pawan K Garga**

* Vandana Varma, Research Scholar H.P. University Business School, Himachal Pradesh University, Shimla. India.Email: [email protected]

**Pawan K. Garga, H.P. University Business School, Himachal Pradesh University, Shimla. India.Email: [email protected]

RESEARCH

INTRODUCTION

The growth of agricultural production in Indiaassumes crucial importance due to an ever-increasing demand for agricultural productsgenerated by the world's second highestpopulation. However, in the hilly states of Indialike Himachal Pradesh, Jammu and Kashmir,Uttarakhand, etc, agriculture suffers from certainlimitations especially in the production oftraditional crops and food grains. Consequentlythe relative contribution of horticulture is increasing

significantly in these states. This study is an attemptat highlighting how better management of farmoperations in apple orchards may lead to judiciousresource utilization as well as improve theproduction and productivity of the whole appleindustry. In other words, may lead to'optimization' and sustainability of this industry.The main study deals with a number of factors orskills as they are termed and this paper is basedupon one out of those, namely, 'Pest andDisease Management'.


Insects, pests and diseases frequently causinghavoc to crops are quoted by Sharma R. C.(2000)1to be one of the major shortcomings ofhorticulture. The year 1995 is a case in point,when; premature leaf fall affected more than 40per cent of all apple orchards in HimachalPradesh. According to Sharma, Sharma, &Sharma (2004)2, due to premature leaf fall, thequality of produce was affected adversely and fruitbearing capacity was reduced. A study by SharmaJ. N. (2000)3 revealed that the root cause of theproblem was a fungal disease called MarssoninaBlotch or more commonly 'Apple Blotch'.

Similarly, Apple scab, another monumental diseasethe world over and a major disease in applegrowing areas of India has been known to causetremendous loss since 1973 when it spread to theRed Delicious variety. As per Thakur (2000)4, thelarge scale damage and spread of apple scabcreated an alarming situation and the problemmanaged to engage the attention of the IndianCouncil of Agricultural Research, Directorate ofPlant Protection, Quarantine and Storage and theGovt. of India whence it was promptly declaredas one of the five main problems of nationalimportance. Although measures were taken tocontrol the disease effectively in Jammu andKashmir where it was first detected, it made anappearance in Himachal Pradesh in 1977. Withinsix years it assumed epidemic proportions andaffected 40,000 hectares of the state, made 10per cent of the fruit unfit for market consumptionand caused a loss of Rs.1.5 crore to the state'sexchequer in the 1983 epidemic. Thakur (2000)5

asserts that scab cannot be eliminated in totalitybut can be managed by a three step approach: i)Protection against primary infection - (biological

control), ii) Protection against secondary infection- (chemical control) and iii) Growing scabresistant varieties - (resistance breeding). In viewof economic ramifications incurred on the controlof pests and diseases he advocates an inter-disciplinary approach for devising an integratedcontrol program which should be need based,economical and environmentally safe.

The above instances merely hint at thetremendous impact the mismanagement or lack ofappropriate management of the pest and diseaseskill can have on the production, productivity andprofitability of an apple orchard. Apart from theabove two examples, there are a number of pestsand diseases which are widely reported andquoted in a number of sources. This paper islimited to discussing how well the pest anddisease skill was managed in the samplepopulation in 2009 and whether it could beconsidered as a non-optimized skill which wouldrequire training augmentation. Furthermore thepaper will explore whether a common pest anddisease program would be sufficient for both thedistricts under study or a customized strategywould be more suitable

DEFINITIONS

Customization is defined as making to order ormodifying according to individual requirements(H.W.Fowler, F.G.Fowler,& R.E.Allen, 1994)6

Optimization is defined as "to make the best ormost effective use of (a situation, an opportunityetc.)"(H.W.Fowler, F.G.Fowler,& R.E.Allen,1994)7. In the context of the present study, itsignifies the most effective use of limited andscarce resources like water for irrigation andhuman resources. Optimization involves creative

Pest and Disease Management of Apple Orchards of Himachal Pradesh : A Potential Area for Optimization


manipulation around factors which are largelyuncontrollable e.g. global warming, erratic andunpredictable precipitation etc. as well as aproactive approach as opposed to a symptomaticone in various areas like disease and pestmanagement etc.

Skill may be defined as " Ability and capacityacquired through deliberate, systematic andsustained effort to smoothly and adaptively carryout complex activities or job functions involvingideas (cognitive skills), things (technical skills), and/ or people (interpersonal skills)." (H.W.Fowler,F.G.Fowler,& R.E.Allen, 1994)8.

Integrated Pest Management (IPM) is defined bythe Minnesota department of agriculture(Anonymous)9, as "an approach which firstassesses the pest situation, evaluates the merits ofpest management options and then implements asystem of complementary management actionswithin a defined area."

OBJECTIVE

The objective of the research paper is toexplore the extent of synchronization of plantprotection expenditure to the actual insect,pest and disease problems and also to assesswhether plant protection is a crucial enoughaspect to warrant a more skillful strategy.

The literature survey resulted in a list of mostcommon insects, pests and diseases found in appleorchards of Himachal Pradesh. The samplefarmers were questioned regarding the sighting ofthe listed insects, pests and diseases and theirmanagement. They were also questioned aboutfarm expenditure incurred that year under variouscost heads of which expenditure on plantprotection was one.

To know whether the problem of insects, pestsand diseases has any significant influence on thefarm profit and whether expenditure on plantprotection exhibits any relation with the reportedincidence of pests and diseases, two hypotheseswere developed and tested. The hypotheses arelisted below:

HYPOTHESIS A:

H A0: Plant protection expenditure influencesprofit.

H A1: Plant protection expenditure does notinfluence profit.

HYPOTHESIS B:

H B0: Plant protection expenditure is aligned withthe incidence of pests and diseases.

H B1: Plant protection expenditure is not alignedwith the incidence of pests and diseases.

RESEARCH DESIGN - In this study, theuniverse includes all apple orchardists of districtsShimla and Kullu of Himachal Pradesh. Thepopulation refers to the apple growers of thelargest apple producing blocks of the respectivedistricts. These are Jubbal- Kotkhai block ofdistrict Shimla and Naggar block of district Kullu.The sample size for the present study is 100, 50each belonging to Shimla and Kullu districts andout of these 50, 25 each have been taken fromtwo different randomly selected Patwar circles inthe largest apple producing development blocksof the two districts. Care has been taken to ensurethe proportionate representation of marginal, small,medium and large category growers. Nonprobability- quota sampling design was used forthe present study.



The objectives of the research paper have beensatisfactorily analyzed by the use of both primaryand secondary data. The main source of primarydata and the instrument of data collection for thestudy was the questionnaire. A predominantlystructured questionnaire was used.

INFERENTIAL ANALYSIS - Primary dataregarding reporting of pests and diseases andexpenditure per farm was subjected to 'Pearson'sCorrelation analysis' and 'p values' calculated. Asstated earlier, farmers were questioned about anumber of commonly reported insects anddiseases as per the review of literature. Thediseases were categorized as viral, pathologicaland nutritional. The consolidated findings for thestate of Himachal Pradesh and analyses follow.

LIMITATIONS OF THE STUDY

The data pertains to only the survey year so thefindings may be taken as an indication rather thanconclusive evidence regarding the pest anddisease management skill of the sample.Secondly, the analysis is based on expenditureincurred on the spray of insecticides, pesticidesand other medicines as this was the most popularpest and disease management method. Themedicines sprayed were the ones recommendedby the department of horticulture and did notdiffer in the two districts.

FINDINGS, IMPLICATIONS ANDSUGGESTIONS

Table 1 Correlation Matrix for Reported Pests and Diseseases with profit and plant Protection

Expenditure in Shimla

CORRELATION

PARAMETERS PPE PFT IMI IMPD IVD IND TID

PPE

Pearson's

Correlation 1 0.995** 0.095 0.326* 0.161 0.125 0.273

Sig.(2-tailed) 0 0.512 0.021 0.265 0.386 0.055

N 50 50 50 50 50 50 50

PFT

Pearson's

Correlation 0.995** 1 0.095 0.331* 0.184 0.142 0.285*

Sig.(2-tailed) 0 0.511 0.019 0.2 0.326 0.045

N 50 50 50 50 50 50 50

Pearson's

Correlation 0.095 0.095 1 0.581** 0.231 -0.426** 0.808**

Sig.(2-tailed) 0.512 0.511 0 0.106 0.002 0



IMI N 50 50 50 50 50 50 50

IMPD

Pearson's

Correlation 0.326* 0.331 0.581** 1 0.292* -0.135 0.822**

Sig.(2-tailed) 0.021 0.019 0 0.039 0.351 0

N 50 50 50 50 50 50 50

IVD

Pearson's

Correlation 0.161 0.184 0.231 0.292* 1 0.343* 0.554**

Sig.(2-tailed) 0.265 0.2 0.106 0.039 0.015 0

N 50 50 50 50 50 50 50

IND

Pearson's

Correlation 0.125 0.142 -0.426** -0.135 0.343* 1 0.054

Sig.(2-tailed) 0.386 0.326 0.002 0.351 0.015 0.711

N 50 50 50 50 50 50 50

TID

Pearson's

Correlation 0.273 0.285* 0.808** 0.822** 0.554** 0.054 1

Sig.(2-tailed) 0.055 0.045 0 0 0 0.711

N 50 50 50 50 50 50 50

Table 2 Correlation Matrix for Reported Pests and Diseseases with Profit and Plant Protection

Expenditure in Kullu

CORRELATION

PARAMETERS PPE PFT IMI IMPD IVD IND TID

PPE

Pearson's

Correlation 1 0.990** 0.037 0.056 -0.311* -0.008 -0.096

Sig.(2-tailed) 0 0.800 0.701 0.028 0.959 0.507

N 50 50 50 50 50 50 50

PFT

Pearson's

Correlation 0.990** 1 0.039 0.042 -0.301* -0.036 -0.109

Sig.(2-tailed) 0 0.790 0.77 0.034 0.802 0.453

N 50 50 50 50 50 50 50

IMI

Pearson's

Correlation 0.037 0.039 1 0.056 0.051 -0.277 0.591**

Sig.(2-tailed) 0.8 0.79 0.698 0.725 0.051 0

N 50 50 50 50 50 50 50



IMPD

Pearson's

Correlation 0.056 0.042 0.056 1 -0.115 0.012 0.579**

Sig.(2-tailed) 0.701 0.77 0.698 0.427 0.934 0

N 50 50 50 50 50 50 50

IVD

Pearson's

Correlation -0.311* -0.301* 0.051 -0.115 1 -0.029 0.434**

Sig.(2-tailed) 0.028 0.034 0.725 0.427 0.839 0.002

N 50 50 50 50 50 50 50

IND

Pearson's

Correlation -0.008 -0.036 -0.277 0.012 -0.029 1 0.191

Sig.(2-tailed) 0.959 0.802 0.051 0.934 0.839 0.185

N 50 50 50 50 50 50 50

TID

Pearson's

Correlation -0.096 -0.109 0.591** 0.579** 0.434** 0.191 1

Sig.(2-tailed) 0.507 0.453 0 0 0.002 0.185

N 50 50 50 50 50 50 50

**Correlation is significant at the 0.01 level (2-tailed).*Correlation is significant at the 0.05 level (2-tailed).

S.NO. ABBREVIATIONS USED IN CORRELATION MATRICES

1 PPE PLANT PROTECTION EXPENDITURE

2 PFT PROFIT

3 IMI INCIDENCE OF MAJOR INSECTS

4 IMPD INCIDENCE OF MAJOR PATHOLOGICAL DISEASES

5 IVD INCIDENCE OF MAJOR VIRAL DISEASES

6 IND INCIDENCE OF NUTRITIONAL DISORDERS

7 TID TOTAL INCIDENCE OF DISEASES

Table 3Key of Abbreviations for Tables 1 And 2

IMPLICATIONS AND SUGGESTIONSBASED ON TABLES (1 AND 2)

Plant 'protection expenditure' and 'profit' exhibitedpositive and highly significant correlation implyingthat plant protection is a crucial area and mayhave a strong bearing on the profit of a farm.Moreover, this is observed to be true for both thedistricts. It could mean that more profitable farms

spend more on plant protection as well as thosefarms which spend more on plant protectionreport more profit. It also indicates thatexpenditure on plant protection has not reachedits optimum level and an increase in plantprotection yet, is likely to increase profitability ofan apple farm in Himachal Pradesh.

In a nutshell, plant protection expenditure is



verified to be a crucial skill which influencesprofitability of a farm. Therefore the nullhypothesis stands accepted.

IMPLICATIONS AND SUGGESTIONS

It is observed in both the districts that theincidences of major insects, major pathologicaldiseases and viral diseases are correlated with thetotal incidence of disease and the correlation ishighly significant. Therefore it is inferred that thesethree categories constitute the crux of the pest anddisease problem. Nutritional disorders have notbeen reported by either of the districts significantlyso as per this survey, the farmers do not considertheir farms to be nutritionally compromised.

IMPLICATIONS AND SUGGESTIONSFOR DISTRICT SHIMLA

In district Shimla incidence of major insects andincidence of nutritional disorders showed anegative and highly significant correlation. Thiscould indicate that 'major insects' visiting applefarms of district Shimla prefer farms havingnutritionally superior plants. This is an interestingfind and could be considered as an area for furtherinvestigation.

Plant protection expenditure and reportedincidence of major pathological diseases exhibiteda positive and significant correlation. This mayindicate that plant protection expenditure of Shimlafarmer is influenced by the incidence of majorpathological diseases. A similar relationship isobserved between profit and reported incidenceof major pathological diseases indicating thatpossibly the major pathological diseases are beingsuccessfully controlled and have a positive bearingon profit. A positive and significant correlation

between profit and total incidence of diseasesrequires further investigation which is beyond thescope of the present research paper.

A number of factors showed a positive but non-significant correlation so no inferences are beingdrawn on the basis of those factors. However, it isnoteworthy that plant protection expenditureshowed a positive but non-significant correlationwith major insects, viral diseases and nutritionaldisorders as well as with profit. If increased, it mayhave a further positive impact on profit. This is sobecause of the observation that increased plantprotection expenditure on major pathologicaldiseases is producing a favorable impact on profitand the major pathological diseases are the focusof expenditure as of now.

No indicative or conclusive clues emerge from theobserved negative and non-significant correlations.In short, in district Shimla, plant protectionexpenditure appears synchronized with thereported incidence of major pathological diseases.It is not verified whether this is the case in case ofmajor insects, nutritional disorders and viraldiseases.

IMPLICATIONS AND SUGGESTIONSFOR DISTRICT KULLU

Positive and highly significant correlations ofincidence of major insects, major pathologicaldiseases and viral diseases with the total incidenceof diseases indicates that these three constitute themost important insect, pest and disease problemsfor district Kullu.

Negative and significant correlation observedbetween plant protection expenditure and viraldiseases points towards the possibility that control



measures against viral diseases are a priority in thedistrict. Positive and significant correlation is notobserved in district Kullu.

There were a number of factors which showed apositive but non- significant correlation so arebeing overlooked. Nevertheless it may be inferredfrom the positive correlation of plant protectionexpenditure with profit as well as incidence ofmajor insects and major pathological diseases,that there appears scope for increasingexpenditure on these two categories. Like Shimla,there were a number of negative and non-significant correlations exhibited in district Kulluwhich do not amount to much statistically.

CONCLUSION

In the case of hypothesis A, the null hypothesis isaccepted for both the districts. It is verified that"Plant protection expenditure does indeedinfluence profit".

In the case of hypothesis B, it is observed that inboth the districts the incidence of major insects,major pathological diseases and viral diseasesconstitute the main pest and disease problem.However, as per the responses, it appears that indistrict Shimla, plant protection expenditure issynchronized with the control of 'majorpathological diseases' whereas in Kullu, althoughnot as clearly but the focus seems to be on thecontrol of 'viral diseases'. The null hypothesis failsto be accepted; therefore the alternate hypothesisstands accepted. It may be stated that plantprotection expenditure in both the districts is notsynchronized optimally with the incidence of pestsand diseases. Therefore it will not be wrong tostate that the pest and disease skill in the appleorchards of Himachal Pradesh is not optimized.

On the basis of the above analysis, it is suggestedthat since the pest and disease problem is acrucial area for the profitability of a farm, plantprotection expenditure needs to be bettersynchronized with the reported problems. Indistrict Shimla, increased expenditure on thecontrol of insects and viral diseases is suggestedin addition to expenditure on major pathologicaldiseases. In district Kullu, increased expenditurefor the control of insects and major pathologicaldiseases in addition to viral diseases is suggested.Integrated pest management if adopted is likely togive good results.

REFERENCES

1. Sharma, J. N. (2000). Premature Leaf Fallin apple: Symptoms,Causes and Cure. In V.K. Sharma, & K. C. Azad (Eds.),Horticulture Technology- Vision 2000 andBeyond (Vol. 2, pp. 32-36). New Delhi:Deep and Deep Publications Pvt.Ltd.

2. Sharma, J. N., Sharma, A., & Sharma, P.(2004). Out-break of Marssonina Blotch inWarmer Climates Causing Premature LeafFall of Apple and its Management. ActaHort.(ISHS) , 662, 405-409.

3. Sharma, R. C. (2000). Need for Researchfor Improving the Quality of Fruits andVegetables for Processing Industry. In V. K.Sharma, & K. C. Azad (Eds.), HorticultureTechnology: Vision 2000 and Beyond (2000ed., Vol. 2, p. 11). New Delhi: Deep andDeep Publications Pvt.Ltd.

4. Thakur, V. S. (2000). Apple ScabForecasting and Management. In V. K.Sharma, & K. C. Azad (Eds.), Horticulture



Technology : Vision 2000 and Beyond (Vol.2, pp. 37-61). New Delhi: Deep and DeepPublications Pvt. Ltd.

5. Ibid.

6. H. W. Fowler, F. G. Fowler,& R.E.Allen.(1994). The Concise Oxford Dictionary ofCurrent English, 8th edition. New Delhi:Oxford University Press.


7. Ibid.

8. Op.Cited6

9. Anonymous. (n.d.). Plants,Pests and Pestcontrol. Retrieved February 21, 2013, fromMinnesota Department of Agriculture: http://www.mda.state.mn.us/en/plants/pestmanagement/ipm/ipmdef.aspx.

Q U O T E S

Live as if you were to die tomorrow. Learn as if you were to live foreverMahatma Gandhi

The best way to find yourself is to lose yourself in the service of othersMahatma Gandhi

Let us sacrifice our today so that our children can have a better tomorrowDr. A. P. J. Abdu Kalam

I, for one, thoroughly believe that no power in the universe can withhold from anyone anythingthey really deserve

Swami Vivekananda

If you can give them positive ideas, people will grow up to be men and learnto stand on their own legs

Swami Vivekananda

First, believe in the world-that there is meaning behind everythingSwami Vivekananda


Do Weaker Companies List in the Stronger MarketConditions? An Empirical Study from the Indian EquityMarket

ABSTRACT

It is of intense interest, to know, whether companies with different fundamental qualities, access theprimary market through IPO in similar market conditions or not. As the literature shows, that the numberof companies raising money through Initial Public Offer (IPO) and quantity of money raised, bothincreases, when the market condition is perceived to be good. In our analysis, we analyzed 167 companiesfrom the Indian capital market, between 2007 and 2013, to understand whether, there is any differencein market conditions as far as timing in accessing the primary market, among various companies ofdifferent quality is concerned. In 2007 Indian capital market regulator SEBI (Securities ExchangeBoard of India), introduced IPO Grading as a pioneering concept. The mandatory assignment of gradeis based on the fundamental strength of a company; for our analysis we have taken this as a proxy forthe fundamental strength of the company, and prior 3 months average increase in money supply (M3)and the compounded average return of the benchmark 30 share BSE (Bombay Stock Exchange) Sensex(Sensitive Index) is taken as a proxy for the market conditions. As the data is not normally distributed,non-parametric statistical analysis is used. It is concluded that, there is no significant difference in thevariation of the money supply, however there is significant difference in terms of prior equity marketreturn among different time frame, when companies of different fundamental quality accessed the primarymarket for the equity capital.

KEY WORDS: Market Condition, Fundamental Strength, Money Supply, Compounded Average Return.JEL Classification: G0, G14, G24

Souvik Banerjee*

*Souvik Banerjee, Assistant Professor, Sri Sri Institute of Management Studies, Goa and Research Scholar, VITUniversity, Chennai Campus, India.Email: [email protected]

RESEARCH

INTRODUCTION

Capital market (both debt and equity) is animportant channel, through which savings can bemoved to productive sectors of an economy.Stock markets play a major role in thedevelopment of national economies (Bohnstedt,2000). Developed Equity Market is one of thepillars on which success of a market oriented

economy depends.

There is always a perception amongst the analystsand researchers that weak companies want tobask in the glory, when going is strong in theequity market. There is a good amount ofliterature, already existing in this regard. Forexample, Initial Public Offerings (IPO), come inclusters, to give the impression, that they are


taking advantage of windows of opportunity(Ibbotson and Jaffe (1975). Investors may alsoforego their own information and instead useinformation disseminated from the other sources,for example Scharfstein and Stein (1990),Bikchandani, Hirshleifer, and Welch (1992) andWelch (1992) show that investors may rationallyignore their own information and follow thedecisions of other investors. This fuels irrationalityin the market, as evidenced from the cyclic boomand bust.

INFORMATION ASYMMETRY IN THEIPO MARKET

The primary reason, for this is the informationasymmetry in the market. Investors, specially retailinvestors, lack the knowledge and analytical toolsto decipher the relevant information. In this contextit is relevant to discuss 'Market for "Lemons"theory'. This theory was propagated by the notedeconomist George Akerlof in his seminal paper,"The Market for Lemons: Quality Uncertainty andthe Market Mechanism" (The Quarterly Journal ofEconomics, Aug., 1970). Using the example ofLemons (slang of used cars) in the US market, heshowed that trust is important for a functioningmarket, where seller knows more than the buyer,the resulting information asymmetry causesproblem for the consumer. IPO grading isimportant in this context.

To bridge the information asymmetry in thedeveloped western markets, some informalcertification acts as the signal, these include andnot limited to venture capital, lead manager andunderwriter affiliation. But these informalcertifications do not work in the Indian market(Khurshed, Paleari, Pande & Vismara, 2011).

To overcome these difficulties and disseminateknowledge in a transparent way, SecuritiesExchange Board of India (SEBI), the capitalmarket regulator of India, introduced IPO gradingon voluntary basis in April, 2006. It was optionaltill 30th April, 2007. However, the experiment wasnot successful as borne out by the relevant data;although around 40 companies tapped the primarymarket in that time frame, only 4 companiesapproached Credit Rating Agencies (CRAs) forgrading. These 4 companies also did not acceptthe grade assigned to them. This situation arousedbecause there were no incentive for companies toopt for rating/grading. On the one hand afundamentally good company had anapprehension, that if they do not get a good rating,their plan to raise money may jeopardize, on theother hand fundamentally not so good companieshad fear that, their careful cover ups may getexposed (Poudyal, 2008).

POST MANDATORY IPO GRADINGPERIOD

SEBI has made Initial Public Offer Gradingmandatory with effect from May 1, 2007.Explaining the rationale behind making the IPOgrading mandatory, the then SEBI chairman M.Damodaran explained, "When the market startedgoing up suddenly a lot of people (companies)started coming to the market. It is not that only thebest and the brightest continue to come to themarket, there are a lot of other people(companies) who started entering the market. Oneof our concerns is whether we are going to haveanother round of 'vanishing companies' which willraise money and never spend it for the intendedpurpose. I firmly believe that (IPO) grading, if

Do Weaker Companies List in the Stronger Market Conditions? An Empirical Study from the Indian Equity Market


made mandatory, will prevent vanishing companiesin future." A pertinent point in this regard is, thephenomenon of 'vanishing companies', that Indiawitnessed in the mid-1990s, when due toregulatory lacuna, hundreds of companies,disappeared after raising thousands of crores ofequity capital from the primary market throughIPO.

Credit rating agencies like CRISIL, CARE,ICRA, India Rating (earlier Fitch India) andBrickwork Rating are entrusted with the job ofIPO grading, and they are registered with theSEBI for this purpose. The rating scale used is 1to 5, with 1 being the worst, and 5 being the best.Securities Exchange Board of India (SEBI) hasmade IPO grading mandatory primarily tosafeguard the interest of retail investors.Investment in IPOs depend primarily on threefactors namely, i) Fundamental analysis of thecompany, ii) Pricing of the issue, and iii) Investorpreference. IPO grading addresses the issue offundamental analysis of the company.

IPO GRADING FRAMEWORK

SEBI mandates CRAs to grade IPO boundcompanies, as per the following scale:

Table No.1: IPO Grading Framework

According to SEBI guidelines, Credit RatingAgencies (CRAs) are supposed to analysecompanies, for the purpose of grading on thefollowing parameters:

a. Business Prospects and CompetitivePosition

i. Industry Prospects

ii. Company Prospects

b. Financial Position

c. Management Quality

d. Corporate Governance Practices

e. Compliance and Litigation History

f. New Projects-Risks and Prospects

On the basis of guidelines issued by the SEBI, wecan assume, that any company graded 4 or 5 areabove average in fundamentals; Companies withgrade 3 are average in fundamental andcompanies having grade assigned 1 or 2 arebelow average in the fundamental strength.

We have considered all the companies that gotlisted in the Indian equity market, after IPOGrading was made mandatory. Only companieswhich got listed in SME (Small and MediumEnterprise) platform of BSE (Bombay StockExchange) and NSE (National Stock Exchange),the leading two SME exchanges of India areexempted, as the IPO Grading is not mandatoryfor companies, getting listed in the SME Platform.

The distribution of 167 companies, that offeredIPO between 2007 and 2013 are as follows:


Grade / scale Grading Definition

5/5 Stong Fundamentals

4/5 Above Average Fundamentals

3/5 Average Fundamentals

2/5 Below Average Fundamentals

1/5 Poor Fundamentals


Figure1: Break up of companies in different categories

The factors that are being considered as a proxyfor the market sentiment are:

i) Increase in the money supply (M3), through3 months, prior to the listing of the company.

ii) Prior 3 months, average equity market return.

MONEY SUPPLY AND STOCK PRICES

Money supply means, the amount of money that isin circulation in an economy at any given point oftime. Typically, the central bank of any jurisdictioncontrols the money supply. For our analysis, wehave taken M3 or 'broad money', as it is called, asa proxy for money supply.

According to the Reserve Bank of India(RBI):

M2 = Currency with the Public + CurrentDeposits with the Banking System + SavingsDeposits with the Banking System + Certificatesof Deposit issued by Banks + Term Deposits ofresidents with a contractual maturity up to andincluding one year with the Banking System(excluding CDs or Certificate of Deposit) +'Other' Deposits with the RBI

M3 = M2 + Term Deposits of residents with acontractual maturity of over one year with theBanking System + Call/Term borrowings from'Non-depository' Financial Corporations by theBanking System.

The paper is organized as follows: Section 2reviews the literature regarding the timing of theIPOs; section 3 discusses the hypotheses of theresearch, section 4 is about the researchmethodology being employed, section 5 covers theempirical results and the analysis, section 6concludes the research and section 7 throws thelight on the limitation of the present research andthe direction of the future research.

LITERATURE REVIEW

There is significant amount of literature available inthis domain. Prior research shows that there are nostatistically significant differences between firmswho go public during a recession and those whowait for markets to improve (Blum, 2011).

The Initial Public Offering (IPO) is considered tobe one of the most significant events in the lifecycle of a company (Celikyurt, Selvilir, andShivdasani, 2010; Latham and Braun, 2010). AnIPO is the first sale of stock by a private companyto the public and the consequential listing on astock exchange. Going public allows firms to raiseand access funds necessary to accelerate growthin order to achieve market leadership.

The IPO market serves as an economic indicatorin both practice and academia due to its provenpro-cyclical nature (Lowry, 2003). During aneconomic expansion, IPOs experience a ?boommarket; characterized by an increased number offirms tapping primary market to raise resources,



while - bear markets, occurring during arecession, exhibit low levels of IPO activity (Blum,2011). Lowry (2003) and He (2007) recognizethat variation in IPO volume cannot fully beexplained by financing requirements, and identifythe economically significant factors contributing tothe aggregate IPO fluctuations. Bugstallen (2008)suggest that firms issue equity following period ofhigh stock market valuations to benefit from theaccompanying low cost of equity, at that phase.

Brau and Fawcett (2004) in a survey of 336CFOs (Chief Financial Officer's) found that, whileconsidering IPO, timing of the issue is in top oftheir mind. Rosen, Smart and Zutter (2005) foundthat firm quality does not differ significantly amongfirms that access primary market at the boom orthe bust time.

According to Sprinkel (1964) a bear stockmarket was predicted 15 months after each peakin monetary growth, and that a bull market waspredicted two months after each monetary troughwas reached. Homa and Jaffe (1971) in theirresearch concluded that the average level of stockprices is positively related to the money supply.Pesando (1974) was of the opinion that astructural and stable relationship between moneysupply and common stock prices was not there.Kraft and Kraft (1977) used time series analysisand found no causal relationship from moneysupply to stock prices. Pearce and Roley (1985)examined the effects of money supply news onstock prices, finding a negative relationshipbetween unanticipated increases in the moneysupply and stock prices. Jain (1988) also notedthat announcements about money supply aresignificantly associated with stock price changes.

Karamustafa and Kucukkale (2003) showed thatmoney supply was co-integrated with stockreturns with respect to the Turkish equity market.

Brahmasrene and Jiranyakul (2007) showed inthe context of the equity market of Thailand, thatmoney supply had a positive impact on the Thaistock market.

From this it can be hypothesized that the quantumchange in the money supply (M3) can be taken asa factor in the market condition. Similarly marketreturn of the benchmark index of the equitymarket can be taken as a proxy factor for themarket condition.

Equity market return is the primary driver of thesentiment in the equity market. In this study, twofactors,i.e. prior 3months, i) average increase inthe money supply (M3) and ii) averagecompounded return of the Sensex, are taken as aproxy for the market conditions.

The current research, studies the Indian equitymarket in this context, over the period of 2007 to2013.

HYPOTHESIS OF THE RESEARCH

NULL HYPOTHESES

H01-There is no difference in the marketconditions, in terms of the increase in the moneysupply (M3), across listing time of companieswith the different fundamentals.

H02-There is no difference in the marketconditions, in terms of the return of benchmarkindex, across listing time of companies with thedifferent fundamentals.



ALTERNATIVE HYPOTHESES

H11-There are differences in the marketconditions, in terms of increase in the moneysupply (M3), across listing time of companies withthe different fundamentals.

H12-There are differences in the marketconditions, in terms of return of the benchmarkindex, across listing time of companies with thedifferent fundamentals.

RESEARCH METHODOLOGY

In this paper it is explored whether marketconditions in terms of prior 3 months averageincrease in the money supply in the country in theform of M3 and compounded average return ofthe Bombay Stock Exchange's (BSE) top 30share benchmark "Sensitive Index" or Sensexdiffer significantly for the time frame of listing forcompanies, with the different fundamental strength,namely above average, average and the belowaverage.

Secondary data from the Capital Market and theReserve Bank of India (RBI) databases are beingused, the software package being used is SPSS16.

The average growth rate of M3 and the averagereturn of Sensex are tested to check whether; theyadhere to the normal distribution using Q-Q plot.Data for both the variables are found to bedistributed, not according to the normaldistribution norms.

Also for the data sets of the increase in the moneysupply (M3) and also for the average return of thebenchmark index (Sensex), it is found out, howmany outliers are there in terms of the values

outside the 2 standard deviation from the meanand these values are excluded for the analysispurpose. Five values are found to be outliers, forthe increase in the money supply variable, whereas eleven values are found to be outliers, as far asthe average return of the benchmark index(Sensex) is concerned.

Since the data is not normally distributed, non-parametric statistical analysis tools are being usedfor the analysis purposes.

Kruskal-Wallis Test is deemed to be a proper toolto analyse, whether there is any differencebetween the market conditions, in terms of the twovariables (prior 3-months average return of Sensexand prior 3-months average increase in the moneysupply in terms of M3 or broad money) for thelisting time frame of the different categories of thecompanies.

EMPIRICAL RESULTS AND ANALYSIS

In this section the results from the SPSS softwareare put.

3 Months Average Increase of Money Supply(M3)



Three_Months_Avg_Return_of_Sensex

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .028a .001 -.005 .610986119

a. Predictors: (Constant), Fundamental

b. Dependent Variable: CAGR_M3

Casewise Diagnosticsa

Case

Number Std. Residual CAGR_M3 Predicted Value Residual

7 2.165 2.635030 1.31223057 1.322799311E0

38 2.165 2.635030 1.31223057 1.322799311E0

43 2.383 2.767978 1.31223057 1.455747131E0

44 2.383 2.767978 1.31223057 1.455747131E0

157 2.456 2.767978 1.26760229 1.500375405E0

a. Dependent Variable: CAGR_M3

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .064a .004 -.002 4.033461308

a. Predictors: (Constant), Fundamental

b. Dependent Variable: Three_Months_Avg_Return_of_Sensex

Casewise Diagnosticsa

Case

Number Std. Residual

Three_Months_A

vg_Return_of_Se

nsex Predicted Value Residual

10 2.185 9.137050 .32226311 8.814786841E0

12 2.185 9.137050 .32226311 8.814786841E0

17 2.401 10.005669 .32226311 9.683405633E0

40 2.104 8.807300 .32226311 8.485037090E0

50 -3.196 -12.568544 .32226311 -1.289080714E1

51 2.401 10.005669 .32226311 9.683405633E0

53 -3.282 -12.914092 .32226311 -1.323635521E1

92 2.102 9.137050 .65862238 8.478427565E0

94 2.020 8.807300 .65862238 8.148677814E0

127 -3.365 -12.914092 .65862238 -1.357271448E1

154 2.805 12.309247 .99498166 1.131426485E1

a. Dependent Variable: Three_Months_Avg_Return_of_Sensex



Kruskal-Wallis Test

Ranks

Test Statistics a,b


Fundamental

CAGR_M3 1

2

3

Total

N

68

61

33

162

Mean Rank

76.81

89.37

76.62

CAGR_M3

Chi-Square 2.759

df 2

Asymp. Sig. .252

a. Kruskal Wallis Testb. Grouping Variable: Fundamental

Kruskal-Wallis Test

Ranks

Fundamental

Three_Months_Avg_Return_of_Sensex 1

2

3

Total

N

65

58

33

156

Mean Rank

78.69

68.70

95.35


CONCLUSION

H-value for the first factor, i.e. compoundedincrease of the money supply (M3) is 2.759;where as H-value for the second factor (return ofthe benchmark index) is 7.34. At 5% significancelevel, first null hypothesis is accepted (as the p-value is .252 and it is significantly higher than0.05). So the difference in the increase in themoney supply has a 25.2% probability of

occurring by chance. As a result, it can be safelyconcluded, that there is no significant difference inthe increase in the broad money supply, amonglisting time frame of companies with the differentfundamentals.

For the second null hypothesis, H-value is 7.340,and at the degree of freedom of 2, p-value is0.025; which is significantly lower than 0.05 (at5% significance level). It means that there is only


Test Statistics a,b

Three_Months_Avg_Return_of_Sensed

Chi-Square 7.340

df 2

Asymp. Sig. .025


Test Statistics a,b

Three_Months_Avg_Return_of_Sensed

Chi-Square 7.340

df 2

Asymp. Sig. .025



2.5% chance of the difference being occurred dueto chance. So the second, null hypothesis isrejected. As a result, it is concluded that, there issignificant difference in the 3 months prior averagereturn of the benchmark equity index, across listingtime frame of the companies with the differentfundamental quality.

LIMITATIONS OF THE STUDY ANDFUTURE RESEARCH AREAS

The study concentrated on two factors, where asfuture studies can focus on other factors, such asgrowth rate of the Gross Domestic Product(GDP), Change in the Foreign PortfolioInvestment etc., as they proxy for the marketsentiment.

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Welch Ivo (1992). A theory of Fads,Fashion, Custom, and Cultural Change asInformational Cascades. Journal of PoliticalEconomy, University of Chicago Press,100(5), 992-1026.

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8. Carter, R., Dark, R., and Singh,A.(1998).Underwriter reputation, initialreturns, and the long-run performance ofinitial public offering stocks. Journal ofFinance, 53, 289-311.

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Q U O T E S

Love begins at home, and it is not how much we do... but how much love we put in that actionMother Teresa

If we have no peace, it is because we have forgotten that we belong to each otherMother Teresa

I try to give to the poor people for love what the rich could get for money. No, I wouldn't touch aleper for a thousand pounds; yet I willingly cure him for the love of God

Mother Teresa

If you can't feed a hundred people, then feed just oneMother Teresa



Obstacles to an Emerging Economy: The Imperative ofNurturing Women in India's Workforce

INTRODUCTION

To be successful in India, employers must rely on the country's exceptionally educated and ambitiousprofessional workforce. Unlike in some European countries where the workforce size is shrinking,India's working-age population is on the rise, steadily growing through the last several years, andexpected to continue to do so in the future.

Unfortunately, attracting and retaining these valued employees - and by association, their skills andexperience - continues to be a challenge. Large numbers of employees in India are under age 30; theyhave new expectations about fitting together jobs and family, and they are speaking loudly about theirdesires to be able to balance work and life.

This is particularly true in regards to India's working women. Increasingly, these well-educatedprofessionals rival their male counterparts in career aspirations. They represent a critical part of theworkforce and promise great skills for employers. Reports, such as the 2013 MasterCard WorldwideIndex of Women's Advancement in South Asia, recognize these ambitious career women as crucial to thefuture of such emerging economies.

However, their numbers have not kept up with their ambition and potential. The World EconomicForum1reported that India's corporate workforce is only 23 percent female, dramatically lower thanthe female workforce in countries like Brazil (35 percent) and the U.S. (52 percent). Painting an evenbleaker picture, the 2011 study Gender Diversity Benchmark for Asia2 shows that in all of Asia, Indiahas the lowest or near lowest number of women at every management level.

NHRDN Mumbai Chapter* and Bright Horizons Workforce ConsultingResearch Teams**

* NHRDN Mumbai Chapter: Ms. Mona Cheriyan, Mr. Marcel Parker, Ms. Sonali Roychowdhury, Dr. Ketna Mehta,Ms. Sushmita Rath, Ms. Gemma Dias.** Bright Horizons Workforce Consulting: Ms. Andrea Wicks Bowles, Ms. Kim Callaway, Ms. Kristin Henderson.(This collaborative Research was undertaken by NHRDN Mumbai Chapter (WoMentoring Team) and Bright HorizonsWorkforce Consulting, USA.)Acknowledgement: NHRDN 'WoMentoring' team supported the data collection.

RESEARCH

PROFILE OF RESPONDENTS

Gender

76% of respondents were female

Significant differences between male and

female responses exist in several key areas

Position

o 48% of respondents were mid-levelexecutives and 31% were senior leaders


Significant differences exist in engagementlevels between mid-level and senior-leadership respondents

Life Stage

38% of respondents have adult/elder careresponsibilities

68% of respondents are married

43% plan to start/expand families within thenext five years

34% of respondents have a child under 13years old

Age

54% of respondents are Gen Y

37% of respondents are Gen X

9% of respondents are Boomers

Chief among the obstacles to a woman's ability tocontribute is the reality of the workplace. Withfew supports to help them manage their jobs andfamily responsibilities (e.g., child care) womendrop out of the professional ranks at dramaticallyhigher rates than their Asian counterparts, severelydiminishing the pool of women available to achievesenior-level positions. This so-called "leakingpipeline" is poised to have significant economicconsequences for employers who stand to losethese accomplished women at precisely themoment in their mid-careers when their knowledgeand ability to contribute is on the rise.

In an effort to understand the impact of thesetrends, and to identify organizational strategies tobe proactive, the WoMentoring Team of the

National Human Resource Development Network(NHRDN) Mumbai Chapter, and HorizonsWorkforce Consulting® (HWC), a division ofBright Horizons®, conducted a study inSeptember of 2013. The goal of the WorkforceInsights: India study was to clarify the challengesfor India's professional women and the barriersthey face when trying to successfully managefamily lives and career aspirations. The survey alsoexplored important strategies for organizations toconsider to allow both a more successfulintegration of work and life, and to support theaspirations of successful career women who havefamily care responsibilities for a child or olderadult. A total of 597 professionals living andworking in India responded to the survey,representing multiple industries.

Just under half of the respondents in the data sethave ten or more years of experience in theworkforce. Such data from a more "seasoned"employee population provides important insightinto a workforce typically characterized as"youthful."

GENERAL FACTS ABOUT INDIA'SWORKFORCE - WHAT'S CHALLENGINGINDIA'S EMPLOYEES?

Engagement is an area of particular concern inIndia. One of an organization's most importantmetrics, it is defined as the level of energy, focus,and emotional commitment employees bring totheir work. Engagement spurs critical capabilities

Obstacles to an Emerging Economy: The Imperative of Nurturing Women in India's Workforce


such as skill building and application, innovation,creativity, dynamic work, and positiverelationships with clients, customers, andteammates. These benefits have been welldocumented in global workforce literature.Quantum's 2013 Employee-Engagement TrendsReport3 says highly engaged employees areexceptionally productive, play a critical factor inemployer success, and drive customer loyalty andpositive financial results.

By comparison to other parts of the world, India's

Women are less likely to

agree that...

Mid-level managers are less

likely than senior leaders to

agree that..

Parents are less likely than

“non-parents” to agree that...

� My organization does a

good job of developing its

people to their full potential.

� I will be able to achieve

my long-term career

objectives at my

organization.

� Employees don’t have to

choose between advancing in

their jobs and devoting

attention to their family or

personal lives.

�

my long -term career

objectives at my

organization.

I will be able to achieve

regularly

� My supervisor

recognizes my

accomplishments.

� My supervisor conducts

fair appraisals of my work.

� The work I am doing is

aligned with what I hope to

be doing in the future

� The work I am doing is

aligned with hat I hope to be

doing in the future.

� I get meaningful

recognition when I’ve done a

good job.

disengaged.

There were significant differences betweenrespondents from key constituents that affectoverall levels of engagement.

In India, this is driven in no small part bychallenges surrounding career aspirations. Ourmodel of engagement derived from theWorkforce Insights: India study clearly showedthat career aspirations make up the mostinfluential component of individual engagement.But there are significant roadblocks. Less thanhalf of respondents told us they felt able toFigure A

level of employee engagement is exceptionallylow.

In its 2011-2012 report4, Gallup called engagedemployees in India a relative rarity, noting a scantnine percent nationwide reported engagement.Worse, the study reports that a startling 31percent of the country's employees are actively

achieve long-term career objectives, and only 56percent said they believed their organization did agood job developing people to their full potential.The data additionally shows that while femalerespondents have similar career aspirations totheir male counterparts, they are significantly lesslikely to say they will be able to advance theircareer at their organization.



Overall, respondents from three categories(women, mid-level managers, and workingparents) all reported diminished confidence inimportant areas such as career development,advancement, and recognition.

Further, satisfaction with supervisor relationships -another key component of engagement - issuffering as well. According to a recent RightManagement study conducted with the VillanovaSchool of Business, more than half of employeesin India are unhappy with their immediate manager.In the: India, study less than two-thirds ofrespondents indicates that their supervisorregularly recognizes their accomplishments andtruly understands what their work entails.

Job flexibility, another driver of engagement fromthe study, also proves to be an area in need ofimprovement, with only 36% of respondentsindicating that they are satisfied with theirorganization's level of flexibility.

RETENTION

Turnover rates in India vary - in some industries,according to a Right Management study, turnover

can be as high as 100 percent. Such departuresoften happen in an employee's first three yearswith an organization. In our data set, employeesreported "lack of advancement opportunities" (51percent) and "lack of a mentor or role model" (47percent) as the top two reasons for departure,with dissatisfaction over salary (36 percent),benefits (33 percent), and supervisor (33 percent)following close behind. Women were significantlymore likely to intend to leave than men.

STRESS

Alongside desire for engagement, stress has asignificant impact on employee performance.Respondents in India told us they are experiencinga significant amount of stress. Over the pastmonth, almost half (44 percent) have consideredlooking for a new job because their current job istoo stressful.

UNDERSTANDING AND SOLVING THECHALLENGES FOR WOMEN

It's clear that India faces challenges workforcewide. Yet for women, delivering on their potentialis particularly complicated.

Studies have shown that increasing numbers ofwomen want to stay in the workforce even afterthey have families. And some economists wonderabout the future of the Indian economy if largenumbers of women continue to exit5.

But numerous challenges for these risingprofessionals, including an absence of dependent-care supports and a shortage of female rolemodels who have successfully navigated theintegration of work and family, have furtherhampered their progress.



Results of a previous survey conducted by theWoMentoring Team of NHRDN, MumbaiChapter identified specific types of programmaticstrategies that women see as essential to theircareer ascent. The Workforce Insights: India studyalso highlighted key benefits that would make adifference [Figure C]. To truly benefit from thepotential of India's working women, organizationswill require attention to, and programs thataddress these areas of concern.

Enabling India's working women to pursue - andattain - their career goals will require employerfocus on several critical areas, particularly onthose key benefits women identified as "highlyimportant": telecommuting, back-up child care,and workplace crèche.

Hindustan Unilever's Career by Choice andTata's Second Career Internships for Womenprograms are two examples of organizationsproviding women with more flexibility chart-ing out long-term career goals.

ENGAGING WOMEN'S CAREERASPIRATIONS

There are numerous examples of companystrategies that support women's careeraspirations. Infosys' Women LeadershipDevelopment program, a partnership with apremier B-school, enables women to remain inthe workforce while discovering latent strengths,re-evaluating their potential, and renewing theiraspirations. Procter & Gamble's Career Mappingprovides career sponsors to help high-performingemployees chart out their professional lives. AndCisco's Connected Women (ExecutiveShadowing Program), Accenture's Vaahini(Women's Network), and Deloitte's WIN(Women Initiative Network) all illustrate the kindof programs that can make a significant impact.

Strict adherence to Sexual Harassment PoliciesSexual harassment - defined as unwarrantedverbal, nonverbal, or physical conduct of a sexual


1. Flexible work hours

2. Daily options for healthy meals and snacks

3. Workplace child care creche for children

4. Emergency back-up care for children

5. Career-development consulting and support

Figure CWhat women say are the most important benefits needed to navigate their careers:


nature that violates the dignity of a person andcreates an environment deemed intimidating,hostile, degrading, and humiliating - is a seriousissue in India.

In 2013, the federal government of India tookaction, enacting the Sexual Harassment Act. Theambitious law applies to all of India's companiesand protects women both from sexual harassmentitself, as well as from redress for filing a complaint.

Much has been spoken about sexual harassment inthe corporate setting, and respondents in our study- 80 percent - reported that their companies havedefined frameworks regarding policy andprevention. But the implementation of these lawsand policies remains a challenge, as evidenced byconflicting responses about efficacy. While roughlyhalf confirmed that sexual harassment is an issue,only 39 percent of women (versus 50 percent ofmen) said they believed the subject is being openlydiscussed. There's a general sense that many casesgo either ignored, brushed aside, or mismanaged.Data collected informally from many femaleemployees clearly shows the gap between theintent and efficacy of these initiatives at theemployee level.

To support the success of women in theworkplace, it is critical for employers to act. Theissue needs to be addressed at the highest level,with a cultural shift from policy talk to effectiveimplementation.

Employee education on these matters must bemandatory. And solutions-based approaches tothe problem must be implemented in everycompany. Multinational companies have movedthe needle much further ahead. But culturally in

India, there remains a long way to go.

STEM THE "LEAKY PIPELINE"

Research has shown that the greatest level offemale attrition occurs at the middle-manager level,when conflict is especially acute around careerobjectives, integrating family and professionalpriorities, and insufficient training to reach the top.The numbers of women decline steeply the higherup the ladder you go, from 53 percent at entrylevel down to just 19 percent of executives in theC-suite6. The drop-off is even more dramatic inIndia where a mere five percent of top leadershipand Board members are women7.

A recent government bill mandating that publiccompanies in India must have at least one womandirector is a step in the right direction. But it looksat the problem from only one angle - that ofcreating opportunities for women versus what itwill take to build a sustainable pipeline withinorganizations.

This makes it an organizational and HR imperativeto rebalance gender diversity efforts away frommerely filling leadership/board and spots towardboth reversing the trend and building the pipelineearly.

Sustained interventions toward these goalsshould include:

Identifying high-potential women as early as3-4 years into their professional careers

Providing these women with developmenttrainings and mentoring

Helping them to create career maps

Addressing barriers to advancement



Offering family care supports to make itpossible to successfully manage career andfamily

Organizations that plant the seed early have beensingularly able to grow a pool of talented women,create a wealth of role models for youngprofessional women to aspire to, and retain theknowledge base these talented women represent.

INTRODUCE COMPREHENSIVESUPPORT POLICIES

India's companies have long been mired inworkplace configurations based on traditional,single-earner families. Such arrangements mayhave worked in the distant past, but the number ofemployees with children, even relative to just threeyears ago, has grown significantly. For women tosucceed, then, employers must look at redefiningtheir infrastructures. Responses to our studyindicate that India is moving steadily forward inareas such as workplace support and policies thatpromote gender diversity. The overwhelmingmajority of HR managers indicated the presenceof anti-harassment policies, and about half notedother supports such as workplace flexibility.Major organizations such as PepsiCo, Intel, andCisco have introduced flexible work options suchas work-from-home, flex-time, part-timeemployment, sabbatical, and maternity leave. Keycorporations like Hindustan Unilever, L'Oreal,IBM, Standard Chartered Bank, HDFC Bank,Ernst & Young, United Bank of India, and Godrejprovide child care supports for their employees.

Clearly, the basics are in place. But, perhaps notsurprising, India's companies are lagging behind

multinational companies. Much work remainsregarding supports (additional employer-sponsored child care programs, extendedmaternity leave, sabbaticals) and flexible workarrangements (telecommuting, work-from-home,job sharing) across life stages. HR must movefrom the current case-by-case practices toinstitutionalized policies that reflect not just theneed for support, but the overall companyculture. For India's companies, such policiesstand to become key drivers of recruitment,retention, and growth of a diverse workforce inthe future.

ACTIVELY ENCOURAGE CAREERGROWTH

The Workforce Insights: India study clearlyshowed that women are as dedicated to theircareers as their male counterparts. Almost asmany women as men called themselves ambitiousand said they aspire towards higher career goals.So what stops them from achieving? For women,the absence of senior-level role models andtargeted long-term mentoring/career sponsorshipprograms (especially in industries likemanufacturing, which lags behind financialservices and IT) are two possible barriers. Suchsupports are essential to nurture women'scareers. They stand not only to reverse thepreviously mentioned "leaky pipeline," but theyalso encourage networking with leaders whohave had similar career paths and provide anavenue for sharing experiences, training, andadvice at critical junctures in a woman's personaljourney. The most successful women often calltheir mentors and career sponsors significantinfluences in their rise to the top.



CREATE INCLUSIVE ASCENSION ANDRECOGNITION POLICIES

Employers should acknowledge the needs of theworkforce and gear themselves towards moreeffectively recognizing employees at different lifestages. Maternity leaves, for example, oftennegatively impact performance appraisals, withwomen who take such time automatically deemedless competitive than their peers. This begins achain reaction of diminished roles, significantslowdown in pay and growth, low representationin conventional reward systems (e.g., short- andlong-term incentive programs, trainings, criticalassignments), and finally, inevitable questionsabout whether the trade-off to return to work isworth it. It is at this moment that women are mostvulnerable to dropping out. In order to avoid thesevicious cycles, organizations need to think aboutrecognition systems that value these women andeffectively integrate them back into the workforcefollowing leaves. Such programs should helpreturning women fast-track skill gaps and becomementors for others about managing work andfamily while providing a performance-ratingsystem that ensures a woman can resume hercareer trajectory following leave.

ENGAGE LEADERSHIP

One of the largest response gaps between menand women involved areas (e.g., achievingpotential, getting recognition) driven by animmediate supervisor. Working parents divergedwith non-parents in their perception that managersdid not understand work/family challenges. Thisunderscores the need to focus ample resources ontraining supervisors to:

Encourage diversity

Create an empowering work culture for theirteams

Ensure that HR systems are actuallyimplemented as per their intent

To an employee, the boss is the face of theorganization, and organizations must focus andmaximize that lever.

RESPOND TO CURRENT EMPLOYEECHALLENGES

Along with children, responsibilities for elders,personal wellness, and stress management willcontinue to emerge as significant work/lifechallenges for employees. Women in Indiacontinue to be seen as the primary caregiver,thereby intensifying these challenges. As thegeriatric population swells - and with it theincreased responsibility of caring for the elderlyand disabled - the pressure on women is bound toincrease. Companies need to think about theseemerging needs and broaden the scope of existingbenefits, supports, and policies to respond.

WHAT'S NEXT

Employers in India are at crossroads. The countryhas been identified as an emerging economicmarket, but challenges within the employeepopulation are standing in the way of progress. Acombination of startlingly low retention rates,sagging engagement, and an absence of the abilityto advance one's career alongside familyobligations have compromised workforces andmade it difficult for employers to deliver on India'spotential. With few work/life supports, well-



educated professional women in particular -considered the lynchpin of employer success - areexiting the workplace at an alarming rate.

Changing course will require a concerted effort byemployers. Building engagement in particular - thekey to creativity, innovation, and productivity - willnecessitate that employer's offer assistance thathelps women grow their careers, navigate stress,and satisfy their desires for a balance of work andlife.

Those who recognize these challenges andrespond to them will cultivate energizedworkforces that capitalize on both the potential ofthe overall talent pool and the considerablecontributions presented by India's increasinglycareer-focused and ambitious young professionalwomen.

REFERENCES

1. The Corporate Gender Gap Report 2010,Saadia Zahidi, World Economic Forum,Herminia Ibarra, INSEAD.

2. Gender Diversity Benchmark for Asia 2011,Community Business.

3. Employee Engagement Trends Report 2013,Quantum Workplace.

4. State of the Global Workplace Report2013, Gallup.

5. Strategies to Support Professional Womenin India, Horizons Workforce Consulting,2013.

6. Unlocking the Full Potential of Women atWork, McKinsey & Company, JoannaBarsh and Lareina Yee, 2012.

7. Women Matter: An Asian Perspective,McKinsey & Company, June 2012.


Q U O T E S

The intoxication with power is worse than drunkenness with liquor and such, for who is drunk withpower does not come to his senses before he falls

Vidura (Mahabharata)

Forgiveness is a virtue of the braveIndira Gandhi

It's not how much we give but how much love we put into givingMother Teresa


Devising A Balanced Scorecard to determine a StandardChartered Bank's Performance: A Case Study

Performance management plays a pivotal task in evaluating the strategic performance of commercialbanks. This paper makes a study about how to use the Balanced Scorecard (BSC) as a tool, which isapplied to commercial banks performance management system. It also points out that, BSC makes a wayinto the imperfections of the traditional single application of financial indicators which measuresperformance. BSC is a performance management appraisal system based not only on the financialaspects but also on non-financial aspects like customer factors, internal business processes, and employeelearning and growth. The purpose of this study is to contribute to the understanding of how BSC isdeveloped and applied in evaluating the performance of Standard Chartered Bank (SCB), a foreignbank in India. Using the concepts of Kaplan and Norton, and the data made available from the bank'sfinancial and non-financial data, BSC was derived to measure the performance of the foreign bank inIndia during 2009-2012. The analysis assisted the cause-effect relationships between the non-financial,and the financial dimensions of the BSC. The use of the BSC developed here is limited to the bankstudied. However, the approach could trigger off reflections among policy makers and other banks tostart using the BSC.

KEY WORDS: Balanced Scorecard, Banks Performance Management, Foreign Banks and PerformanceEvaluation.

*Sunita Panicker (Corresponding author) Assistant Professor, Department of Management Studies, Christ University,Bangalore, India.E-mail: [email protected]

**Vinita Seshadri, Assistant Professor, Department of Management Studies, Christ University, Bangalore, India.E-mail: [email protected]

Sunita Panicker* and Vinita Seshadri**

CASE STUDY

INTRODUCTION

In the business world the only thing that reallymatters is organization's performance. Theintroduction of performance management ofcommercial banks is of crucial significance owingto the openness of India to the world andinvestors abroad after 1991 liberalization,privatization and globalization. The banking sectorhas begun adopting holistic performance

measurement systems such as the Balanced ScoreCard (BSC) to exhibit to stakeholders that thissector is turning to take advantage of financial andnon-financial measures to offer investors withperformance information. While, Balanced ScoreCard was invented in 1990s, it has received awide range of importance and promotion in theglobal industry community, and certain majorinternational banks have effectively used the


Balanced Scorecard, which has enhanced itsperformance, greatly.

In the contemporary years, in the perspective ofunvarying improvement of global financialproducts, especially in the United States in 2008monetary crisis caused by worldwide financialtumult, how to deal with the banking performancesuccessfully? In reply to this issue and the currenttribulations of commercial bank performancemanagement, this paper formulates research asregards how to employ the Balanced Scorecardas a tool, which is practical to performancemanagement system in foreign banks.

PERFORMANCE MEASUREMENT ANDBALANCED SCORECARD

The literature indicates that performancemeasurement is mostly designed around financialmeasures and targets in operational andmanagement control systems. Namazi & Abhari(2010) states that previous to 1980's,organizations adopted financial measures (Netprofit, return on equity, ROI, etc.) to appraisetheir performance. Nevertheless it is very wellknown that financial measures are excellent, only,in the short term. Thus, performance managementdisregarded the nonfinancial measure, with theresult that the conclusion did not completely revealthe overall operations of the Organisations.Thereby, financial indicators can only reveal theperformance of the organizations in the past anddoes not reveal the bank's future operating state ofaffairs. The dependence on financial measuresonly to evaluate the strategic performance of theorganization motivated Kaplan and Norton (1992)to suggest the Balanced Score Card as a meansto connect performance measures by looking at

the business's strategic vision from four diverseperspectives: Financial, Customer, InternalProcesses, and Learning and Growth. The BSCis proposed to showcase a strategic reason interms of cause and effect associations among theexisting activities of an organization and its long-term success (Chang, 2007, Henri, 2004, 2006).

Given below is the explanation of the BSCperspectives based on Kaplan and Norton(1992, 1996, and 2001):

Financial: This is a strategy for growth,profitability, and risk from the perspective of theshareholder. Hence, under this perspectivemanagers are obligated to produce measures thatanswer the subsequent question: "To succeedfinancially, how should we appear to ourshareholders?" Kaplan and Norton recognize therequirement for conventional financial data. Thestipulation of the right and appropriate financialdata to the right person in the organization aidsmuch in the course of making the right decision inthe right moment. Under this perspective thecommon performance measures included are:ROI, Cash Flow, Net Operating Income,Revenue Growth, etc.

Customer: This is a strategy for creating valueand differentiation from the perspective of thecustomer. The managers are obligated to producemeasures to respond the following question: "Toachieve our vision, how should we appear to ourcustomers?" Distinctive measures used under thisperspective are: customer satisfaction, customercomplaints, customer lost/won, sales from newproduct, etc.

Internal Business Process: This is a strategy

Devising a Balanced Scorecard to determine a Standard Chartered Bank's Performance: A Case Study


for producing goods and services in the mostefficient and effective methods. Consequently,managers are obligated to offer measures thatanswer the following question: "To satisfy ourcustomers and shareholders, what businessprocesses must we excel at?"The essential idea ofthis perspective is the consequences of the internalbusiness processes which lead to financial successand satisfied customers. Commonly usedmeasures for this perspective are: cost of quality,cost of non-conformance, process innovation, timesavings etc.

Learning and Growth: This is a strategy tocreate a climate that supports organizationalchange, innovation and growth. Under thisperspective managers should recognize measuresto answer the subsequent question: "To achieveour vision, how will we sustain our ability tochange and improve?" This perspective is relatedto the employees of the organization, and itmeasures the extent to which the organizationexerts efforts to provide its employees withopportunities to grow and learn in their domain.The following are the commonly used measuresfor this perspective: employee empowerment,employee motivation, employee capabilities, andinformation systems capabilities.

LITERATURE REVIEW

Ever since the appearance of the Balanced ScoreCard (BSC) in 1992, developed by Kaplan andNorton, it has gained widespread acceptance as anuanced tool for performance measurement andstrategic management in various business sectorsincluding the banking sector. However, BSC hasgradually gained popularity in Europe, USA, LatinAmerica and Australia (Janota, 2008).

Fakhri et al. (2011) explored the usefulness of amulti-perspective performance measures in thebanking sector in Libya attempted to explore theusefulness of a multi-perspective performancemeasures in the 55 banks in Libya. The studyidentified that these banks use both financial andnon-financial measures of BSC extensively.Kollberg and Elg (2010), attempted to recognizethe key characteristics of the BSC application inhealth care organizations in Sweden. Theresearcher used a case study approach where theypaid attention on diverse managerial levels in ahierarchical branch in three health careorganizations that applied the BSC. Theexamination discovered that the BSC is used as aninstrument for increasing internal capabilities andorganizational development. Greiling (2010)conducted an explorative pragmatic study on asample of 20 non-profit organizations in the socialservices sector in Germany. The rationale of thestudy was to examine the BSC's implementation interms of execution levels, perspectives, challenges,hindrances, etc. The author stated that the BSCwas still used as a measurement device and not asa management tool in the businesses deliberated.

Chwan-Yi and Lin (2009) in a study developed anintegrated framework by merging the concepts ofthe BSC and the Data Envelopment Analysis(DEA). The study discovered that the synergy ofthe BSC and the DEA explains the suitableperformance indices into management proposition.Zhang and Li (2009) in their study examinedcommercial banks in China and they proposed theBSC as a tool to improve the performance ofcommercial banks in China. They suggested amethod and a strategy for application along withthe restrictions of the BSC.



Harold (2006) in a study clarified how a surge ofbalanced scoreboards can be constructive in thetechnology efficiency of commercial banks in Indiafor the assurance of enhanced performancemanagement. This study helped in thedevelopment of a comprehensive performancemanagement tool for IT in the banking sector inIndia. Huang and Lin (2006) investigated theperformance system and designed a newperformance evaluation system based on the BSCof five commercial banks in China.

Panday (2005) in a study with a group of bankmanagers developed BSC tool and demonstratedthat the strategic objectives are greatly driven byinternal process improvement and that the non-financial variables overtook the financial variables.Tapanya. S, (2004) investigated into Thai BankingIndustry post the 1997 financial crisis, theresearcher has investigated the factors thatinfluence performance management systemsespecially in a fast changing environment throughthe application BSC approach. It has been foundthat the institutional factors play a decisive role inthe selection of performance measurementsystems, irrespective of the strategic orientationand the organizations ownership.

Although not exhaustive, the above literaturereview demonstrates that the BSC approach hadits chance of widespread applications in differentcountries and business sectors.

THE RESEARCH PROBLEM

The literature states a strong interest on appraisingbanks' performance by the BSC approach.However, the BSC, as a performance evaluationtool, did not find its way to the banking sector, in

specific. The authors did not stumble upon anyresearch work mainstreamed to the BSCapplication in the banking sector in MNC banksin India. In addition, the performancemeasurement used in the SCB is still based onfinancial measures, and monthly or annual reports.Although the SCB administration is not aware ofit, the dependence on financial measures ismisleading because it does not provide a holisticview about how the bank is doing on the internalprocesses, customer, and learning and growthperspectives.

Therefore this study shall address the problem ofdeveloping a BSC model to measure theperformance of the SCB. The performanceresults can benefit the bank studied, thestakeholders, and the financial sector analysts.

PURPOSE AND RESEARCHMETHODOLOGY

This research effort aims to:

To contribute to the BSC literature,

To encourage further research on BSC offoreign banks in India,

To increase our understanding about howthe BSC may be developed and appliedwithin the context of the foreign bankingsector in India.

In this research the authors have adopted a casestudy approach. Relevant data was available fromthe bank websites, and was studied for four years(2009-2012). Data was collected directly fromthe bank's financial statements, monthly, quarterly,annual reports, sustainability report, complaintanalysis reports and Director's reports for lastfour years (2009-2012).



DATA ANALYSIS AND BSCDEVELOPMENT

The following steps were used to develop theBSC for the SCB:

FIRST: Based on the concept of the strategicmap, the author's effort was to determine thecharacteristic of bank's administrative activities soas to develop a cause-effect relationship to relatethe bank's objectives to its strategic goals in anattempt to choose the measures relating to eachone of the four BSC perspectives.

Five measures for every perspective were selectedas under:

Financial Perspective: Liquidity Ratio, LeverageRatio, Return on Equity, Net Profit, and Return onInvestment

Internal Processes Perspective: Business peremployee, Growth of Banking Services, CreditGrowth, process and reliability operational errorsand number of suppliers

Customer Perspective: Customer complaintsredressed, Growth in customer savings account,growth in safety deposit, growth in current accountand Consumer banking net promoter's score

Learning and Growth: Number of Employees,Profit per employee, Percentage of employeeappraise, Percentage of employee receivingtraining and employee engagement score.

SECOND: With the help of the data availableabout the SCB performance from 2009-2012, theauthors were able to identify the BSC's objectives,measures, and targets for the four perspectives asthey appear in Table (1).

Table 1: Score AssignmentSCORE

2008-

09

2009-

10

2010-

11

2011-

12

10 20 30 40 50 2009 2010 2011 2012

FINANCIAL SCALE SCORE ASSIGNMENT

Liquidity Ra�o 1- 6 % 7-12% 13-18% 19-24% 25-30% 30 50 40 20

Return on Equity

0-

0.75%

0.75%-

1.50% 1.50-2.25% 2.25-3.00% 3.00-3.75% 40 50 40 20

Net Profit (in Rs 000's) 0-0.5 0.5-1 1-1.5 1.5-2.00 2-2.5 40 50 50 40

Leverage Ra�o

100-

120 121-140 141-160 161-180 181-200 40 40 50 50

Return on Investment 1-3% 4-6% 7-9% 10-12% 13-15% 20 20 20 20

170 210 200 150

INTERNAL PROCESS

Business Per Employee Growth 0-5% 6-10% 11-15% 16-20% 21-25% 40 30 50 30

Growth of Banking Services 1-3% 4-6% 7-9% 10-12% 13-15% 40 50 10 10

Credit Growth 0-5% 6-10% 11-15% 16-20% 21-25% 30 30 40 30

Process & Reliability Opera�onal Errors 0-125 126-250 251-375 376-500 500-625 10 20 50 40

Numbers of suppliers 0-10 .11-20 21-30 31-40 41-50 20 40 20 40

140 170 170 150

CUSTOMERS

Customer Complaints Redressed 0-20% 21-40% 41-60% 61-80% 81-100% 50 50 50 50

Growth in Customer Saving Accounts 0-5% 6-10% 11-15% 16-20% 21-25% 20 50 10 10

Growth in Term Deposit 0-7% 8-14% 15-21% 22-28% 29-35% 40 10 50 20

Growth in Demand Deposit .-1-10% 11-20% 21-30% 31-40% 41-50% 10 30 20 10

Consumer Banking Net Promoter Score 0-15 16-30 31-45 46-60 61-75 20 30 40 50

140 170 170 140

LEARNING AND GROWTH

Number of Employees

0-

15000

15001-

30000 30001-45000

45001-

60000 60001-75000 20 20 20 20

Profit Per Employees in '000's

2000-

2200 2201-2400 2401-2600 2601-2800 2801-3000 20 40 40 20

Percentage of Employees Appraised 0-20% 21-40% 41-60% 61-80% 81-100% 50 50 50 50

Percentage of Employees receiving

Training 0-20% 21-40% 41-60% 61-80% 81-100% 50 50 50 50

Employee Engagement (Score out of 5) 0-1 1.1-2 2.1-3 3.1-4 4.1-5 50 50 50 50

190 210 210 190

TOTAL 640 760 750 630



THIRD: A performance scale was identified foreach measure, and 50 score points were dividedon the elements of each scale. The total scores inthe BSC developed are therefore 1000 (20measures x 50 points, or 250 points/perspective).Table (2) presents the measures, the scales andthe scores breakdown for each measure withinperspectives.

Table 2: Tables showing the objectives andmeasures of BSC required by SCB

FINANCIAL

Liquidity Ratio 30%

Return on Equity 3.75%

Net Pro�t (in Rs 000's) 2.5million

Leverage Ratio 200

Return on Investment 15%

INTERNAL PROCESS

Business Per Employee Growth 25%

Growth of Banking Services 15%

Credit Growth 25%

Process & Reliability Operational Errors 625

Numbers of suppliers 50

CUSTOMERS

Customer Complaints Redressed 100%

Growth in Customer Saving Accounts 25%

Growth in Term Deposit 35%

Growth in Demand Deposit 50%

Consumer Banking Net Promoter Score 75

LEARNING AND GROWTH

Number of Employees 75000

Pro�t Per Employees in '000's 3000

Percentage of Employees Appraised 100%

Percentage of Employees receiving

Training 100%

Employee Engagement (Score out of 5) 5

FOURTH: The SCB performance is measuredfor the four years of study according to the scalesand scores developed in step 3. The last fourcolumns of Table (2) present the scores assignedto each measure from 2009-2012. Table (2) alsoexplains the perspective subtotal/year, whereasthe last row of the table provides the total score/year for all the perspectives.

FINDINGS

The analysis reveals that the SCB performancemeasured by the BSC was 640, 760, 750 and630 for the years 2009-2012 respectively.Converting these scores on a 100% scale yields:64%, 76%, 75%, and 63% for the same years.

It seems evident that the SCB performance wasimproving during the first two years of study, inthe next two years the performance furtherdeclined. In general the annual average scoreachieved by the bank was 695 which indicate anaverage performance. With respect toperformance on individual perspectives, weobserve from Table (2) that the scores achievedon the financial perspective improved steadilyfrom 2009-2011. This finding coincides with thebank's concentration on the financial performanceas a measure of performance. However, therewas a decrease in Liquidity Ratio as Cash at RBIand Balance in Bank is also included with theother current assets that can be a reason for lowliquidity. This also indicates that as RBI requiredthe bank to have a low CRR, it may not bemandatory for banks to keep money with RBI.There has been a decrease in Demand Deposit(Current Account): due to good industrial growth,especially in India in the recent past. Thereby, thebank has used the money for investment inindustrial sectors.



There is also a decrease in saving account in theforeign bank which is operating in India due toMark-to-Market phenomenon. This phenomenonstates that when government securities are givinggood rate of interest to the customers. Thecustomers would prefer to invest in securities thatto invest it with banks. SCB being a foreign bank,their reach to smaller towns and rural areas ofIndia are minimal. The internal processesperspective does not reveal significantimprovements; the average annual growth rate wasabout 2%. In fact the SCB performance was hurtseverely on this perspective. We notice that thegrowth of banking services, measures scored tenduring the third year and fourth year.

The SCB scores on the customer perspectivewere the worst. The growth in customers savingbank account and current deposit scored ten forboth year three and year four. The average annualgrowth rate has dipped during the third and fourthyears of study. However, the customer bankingnet promoter score definitely showed a steadygrowth. This shows that the customer's wereconfident about the performance of SCB in India.

Finally, the learning and growth perspective wasbetter than the customer perspective, financial andinternal process. The bank has scored almost100% on employee appraised, training receivedand employee engagement. These definitely showthat the bank definitely values its stakeholder's, theemployees. Currently, the bank has 38 differently-abled employees. About 30% of the banksemployees in India are women. The company hasgiven various employee benefits like crèchefacilities, six months maternity leave, paternityleave, flexible work from home opportunities and

independent counselling services from aprofessional organisation.

There has been a decrease in profit per employee,because of Net profit going down as well as thenumber of employees remaining constant.

MANAGERIAL IMPLICATIONS

This research work may be viewed as part of adiverse investigation of the usage of manyperformance evaluation approaches developed inthe past few decades. It can, also, provideguidelines to organizations when they considermethods of performance evaluation. The purposeof this study was to increase our understanding onhow the BSC approach may be developed andapplied to measure the performance in the foreignbanks in India. This study has constructed a BSCmodel (including 20 measures) that was used tomeasure the SCB performance. Despite the factthat the results of the performance of the SCBlooks average, we should, appreciated the bankfor being one of the oldest international bank to bestarted in India in the year 1858, and being the firstforeign bank to list in India through the issuance ofIndian Depository Receipts in June 2010.

However, SCB is does not use BSC as aperformance tool. The results of this work havemany implications on the authorities of the CentralBank of India and policy makers in the financialsector in terms of the diffusion of the BSC as asystematic approach to performance evaluation.We expect that with the increased demands fromstakeholders, financial sector analysts, educators,and practitioners the BSC shall be widely used inthe banking sector in India. Although the SCB didnot use this approach in the past, this study has

Devising a Balanced Scorecard to determine a Standard Chartered Bank's Performance: a Case Study


highlighted the importance of viewing performancefrom other perspectives in addition to the financialperspective. The bank's can consider and realizethe importance of this tool as a strategic andvaluable performance management system. Thesuccessful application of the BSC does not comefrom a vacuum; rather top management of thebank should demonstrate its commitment to theadoption of the BSC.

SCOPE FOR FURTHER RESEARCH

Future researches in the foreign banks operating inIndia are needed in this domain, and should focuson studying the contingent factors that facilitate orimpede the implementation of the BSC such as:organizational culture, organizational structure,private vs. public organizations, environment, andtechnology. More studies are, also, needed toidentify the relevant measures of the BSC for thebanking sector.

REFERENCES

1. Chang, L. C., 2007, "The NHS performanceassessment framework as a balancedscorecard approach limitations andimplications," International Journal of PublicSector Management, Vol. 20, No. 2, pp.101-117.

2. Chwan-Yi, C., & Lin, B. (2009). AnIntegration of Balanced Scorecards and DataEnvelopment Analysis for Firm'sBenchmarking Management. Total QualityManagement, 11(20), 1153-1172.

3. Greiling, D. (2010). Balanced ScorecardImplementation in German non-profitOrganizations. International Journal of

Productivity and Performance Management,6(59), 534-554.

4. Harold, L. (2006). PerformanceMeasurement and Management ofTechnology in Indian Banking: NewApproaches. Contributors, I, Bank netIndia, (5), 6-18.

5. Henri, J. F. (2004). "Performancemeasurement and organizationaleffectiveness: Bridging the gap," ManagerialFinance, Vol. 30, No. 6, pp. 93-123.

6. Henri, J. F. (2006). "Organizational cultureand performance measurement systems,"Accounting, Organizations and Society, Vol.31, No. 1, pp.77-103.

7. Huang, H., & Lin, X. (2006). From Strategyto Action: The Balanced Scorecard forCommercial Banks. Journal of BeijingInstitute of Technology, (6).

8. Janota, R. M. (2008). The BalancedScorecard in a Pharmaceutical Company.PhD Thesis, Instituto Superior de Ciênciasdo Trabalho e da Empresa, 12,Measurements Process in the BankingSector. Journal of PerformanceManagement. 3(23), 5-23.

9. Kaplan, R. S., & Norton, D. P. (1992). Thebalanced scorecard-Measures that DrivePerformance. Harvard Business Review,1(70), 71-79.

10. Kaplan, R. S., & Norton, D. P. (1996).Balanced Scorecard: Translating Strategyinto Action. Harvard Business School Press.



11. Kaplan RS, Norton DP (2001). Transformingthe balanced scorecard from performancemeasurement to strategic management: PartII_ .Acc. Horiz., 15(1): 87-104

12. Kollberg, B., & Elg, M. (2010). The Practiceof the Balanced Scorecard in Health CareServices. International Journal of Productivityand Performance Management, 5(60), 427-445.

13. Namazi, M., & Abhari, H. (2010). AnInvestigation of the Balanced- Scorecard'sApplications for Performance Measurementof the Firms Accepted in the TehranSecurities Exchange Market. Journal ofApplied Sciences Research, 6(8), 943-955.

14. Panday, I. M. (2005). Balanced Scorecard:Myth and Reality. Interface, 1(30), 51-66.

15. Tapanya, S. (2004). Examining the Factors

which Influence Performance MeasurementManagement in the Thai Banking Industry: AnApplication of the Balanced ScorecardFramework. PhD. Thesis, MurdochUniversity.

16. Yee-Chin, L. C. (2004). PerformanceMeasurement and Adoption of BalancedScorecards. A Survey of MunicipalGovernments in the USA and Canada. TheInternational Journal of Public SectorManagement, Vol. 17, No 3, pp 204 - 221.

17. Zhang, Y., & Li, L. (2009). Study onBalanced Scorecard of Commercial Bank inPerformance Management System.Proceedings of the 2009 InternationalSymposium on Web Information Systemsand Applications (WISA'09) Nanchang, P.R. China, May 22-24, 206-209.

Diagram of Balance Scorecard



Why should Job Identification be distinguished from JobInvolvement? : A Review of Literature

JOB IDENTIFICATION

Job Identification refers to the extent to whichindividuals perceive themselves to be a part of thejob they undertake (Kanungo, 1982; Luhtanen, &Crocker, 1992). However, this perception maynot be equally "experienced". Secondly, in theliterature on Job Involvement, researchers havedefined job involvement in terms of JobIdentification (Lodahl, & Kejner, 1965). But,there lies a difference between "involvement" and"identification". It is more of a chicken and eggtype of causality, where Job Involvement may leadto Job Identification and vice-versa. Further, anindividual is less likely to evince involvement in his/

*Stuti Saxena, Research Assistant, Indian Institute of Management, Ahmedabad, India.Email: [email protected]

Stuti Saxena*

RESEARCH NOTE

ABSTRACT

Research on organizational identification and job involvement abound in the literature. In fact, jobinvolvement is defined in terms of job identification (Lodahl, & Kejner, 1965). The paper shall reviewthe antecedents and consequences of job identification. The significance of job identification lies inthe employee's propensity to stick with his/her job and increases job involvement which leads to enhancedorganizational identification and commitment. It is also posited that job identification is prone to declineover time. Therefore, the underlying antecedents and consequences responsible for the diminishing jobidentification are also being discussed. The conceptual framework is significant for the further researchon organizational identification, organizational commitment and employee turnover. Another majorcontribution of the paper lies in conceptualizing the concept of "job prestige" which is the resultant ofjob identification. The paper shall close with the organization's attempts at checking or preempting thedecline in job identification with particular reference to employee turnover.

KEY WORDS: Job Identification, Job Prestige, Job Disindentification, Turnover.

her prospective job prior to organizational entryand on-the-job learning. Elsewhere, JobInvolvement has been conceptualized as thedegree to which an individual is involved in aparticular job and actively participates in it (Gorn,& Kanungo, 1980). However, such participationmay only be witnessed if a person understandslikes and hence identifies himself/herself with thejob. Also, Job Involvement appears to be moreof a cognitive construct (Kanungo, 1982; Paullay,Alliger, & Stone-Romero, 1994) and hencenarrow in scope. Contrarily, Job Identificationmay be a pre-organizational entry characteristic inan employee on account of several factors. And,therefore, Job Identification would encapsulate a


broader framework than Job Involvement. In thispaper's framework, I posit that Job Identificationwould result in Job Involvement. The former isakin to an employee's induction and orientation tothe job which would eventually culminate to his/hershowing increased involvement in the job. Further,it would be more appropriate if job involvement isconceptualized in line with the framework of workengagement, a motivational-psychological statewith three dimensions; viz., vigour, dedication andabsorption (Schaufeli, Bakker, & Salanova,2006). The paper would help delineate thedistinction between the Job Involvement and JobIdentification. Thus, the conceptual frameworkbecomes pertinent to appreciate the nuancesunderlying Job Identification.

However, Job Identification is not liable to remainpermanent. It is most apt to decline with time,should there be a flux in the job context factors.The paper shall deal with the antecedents andconsequences of the deceleration in JobIdentification as well.

QUESTION OF IDENTIFICATION

Identity veers around the question of "Who am I?"whereas Identification deals with "How do I cometo know who I am in relation to you?" (Pratt,1998) Individual identity is concerned with how anindividual defines himself/herself (Turner, 1982). Inline with this conceptualization of individualidentity, defining job involvement in terms of self-definition (Rotenberry, & Moberg, 2007: 203) oridentification (Blau, & Boal, 1987; Lawler, & Hall,1970) seems grossly misplaced. And, socialidentification is the process whereby individualsare identified in the context of a social group(Foote, 1951). It has been argued, in line with the

social identification theory (Tajfel, & Turner,1979), identity veers around the extremes ofpersonal and social identity. Whereas, personalidentity refers to self-conceptions in terms ofunique and individual characteristics (For instance,"I am good at playing a guitar"), socialidenti?cation includes 'the value and emotionalsigni?cance attached to that membership' (Tajfel,1978). Implicitly, the conceptualization inheres anemotional component - 'I feel about…' (Ashforth,Harrison & Coley, 2008). It has been indicated inthe research that the emotional component has themost influential motivational force spurring actionor the 'readiness to engage in or disengage frominteraction' (Bergami, & Bagozzi, 2000).

Job Identification, in an individual employee'scontext, forms a part of individual identity.However, in the context of the society to which he/she belongs, an employee's job identification getsreflected as a part of social identification. Anindividual perceives internalization of the job itselfand puts in immense trust in his/her job. Since his/her work provides him/her an opportunity for self-expression (Kanungo et al., 1975), therefore, anemployee expects his/her work to be intrinsicallyrewarding.

Identification with the job would not rest, primafacie, on the individual employee's position, power,status, income, organizational or personal relationsor the brand image of the organization with whichis affiliated with. Thus, all these dimensions wouldbe preceded by his/her first and foremost love forhis/her job. It is his/her ability to align his/hermindset with his/her job and its tools andaccoutrements which shall lend him/her the innerpsychic satisfaction. Further, his/her daily

Why should Job Identification be distinguished from Job Involvement? : A Review of Literature


successes or failures at the job should not deterhim/her from not being a pushover. S/he would fireon all cylinders until his/her daily targets or smallachievements are fulfilled. Such identification isvery much evident in individuals who are involvedin research or complex problem-solving work, forinstance. A scientist engaged in discovering amolecule for a process would evince a high degreeof job identification. Mael and Ashforth (1992)discussed about Professional/occupationalidentification which refers to the definitive self interms of the work being done by the person (Forinstance, I am a doctor; I am a teacher). Thiscomes closest to the concept of Job Identification.However, the difference would lie in the verbbeing used (For instance, I treat patients; I teach).This implies that it is the job and all itsconcomitants which become the definingcharacteristic for an individual employee.

Thus, following the conceptualization oforganizational identification proposed by Ashforthand Mael (1989), I propose that job identificationreflects the degree to which an individual"experiences" oneness with his/her job. Anemployee would not perceive himself/herself as a"part" of the job or vice-versa. Such an employeewould see himself/herself to be identified with thejob as such. Such "experiences" are more on apsychological plane and hence internalized. And,such "experiences" may be perceived as well asexperienced. It is only with such oneness that anemployee would find his/her congruity with his/herjob. However, Ashforth and Mael (1989) havedistinguished between internalization andidentification. In internalization, adoption of valuesand beliefs are motivated by a need to be right;embracing other's values and beliefs are more

deeper, and thus more permanent changes occurin individuals, whereas, in identi?cation adoptionis motivated by attraction, less strong and thusless permanent (Pratt, 1998). Identification refersto self in terms of social categories (for instance, Iam), whereas internalization refers to theincorporation of values, attitudes, etc. within theself as guiding principles (for instance, I believe)(Ashforth, & Mael, 1989). Further, in terms ofthe job dimensions (namely, task autonomy, skillvariety, task identity, task significance, feedbackfrom the job itself, feedback from the agents anddealing with others) proposed by Hackman andOldham (1980), an individual employee shouldbe able to derive intrinsic satisfaction from all ofthem.

Job Identification should not be analyzed in termsof person-job fit. The latter is a more mechanicalattachment with the job, wherein an employeemay/may not be interested or feel the "oneness"with the job and still pursues the job. Thus,person-job fit is matching employees' skills,knowledge, and abilities to performing specificjob-related tasks (Werbel & DeMarie, 2005).Such an employee may not share the intrinsicmotivation needed to identify himself/herself withthe job.

ANTECEDENTS OF JOBIDENTIFICATION

The antecedents of Job Identification may beclassified as intrinsic and extrinsic. Whereas theformer would encapsulate factors like personal,psychological and economic factors, the latterwould encompass dimensions like organizational,social and political. Intrinsic factors are, in fact,nothing but the factors which are associated with



the personality and inclination of the employeehimself/herself. Extrinsic factors are linked to theenvironmental factors in which an employee ispresently situated. Both the dimensions are broad-based and may have positive and negativeconnotations.

As far as the intrinsic factors are concerned,personal factors include the employee's interestand inclination in the job, which is a resultant ofhis/her career history and professionalcompetence. Further, an employee's priorexperience on the similar or related job may alsoserve as a precursor to his/her enhanced JobIdentification, organizational identificationnotwithstanding. This is all the more fortified duringan employee's socialization, induction andorientation in an organization with respect to his/her prospective job. Psychological factors wouldinclude an employee's innate desire to love the jobwhich s/he is presently entrusted with. This wouldbe visible in the degree of commitment expressedby the employee in the job. Economic factors aregoverned by the attractive of monetary and non-monetary incentives and rewards which areattached to the job. This would include his/heradvancement, growth, achievement andrecognition as well as the salary, perks and otherbenefits associated with the job (Ref. Herzberg etal., 1959). We are discounting the factors like ageand experience of an employee here.

Among the extrinsic factors, organizational factorsinclude aspects like the degree of autonomy whichan employee has vis-à-vis some of the decisionsrelated to his/her job (Blauner, 1964), workingrelationships with the supervisor, subordinates andpeers and the overall work environment

(Rabinowitz, & Hall, 1977), which should becompatible with the employee's requirements. Forinstance, an R & D professional should haveaccess to the latest scientific technologies to enablehim/her to remain involved in his/her job. Amongthe social factors are included dimensions like his/her family support and other relationships,including friends. Finally, among the politicalfactors are included the organizational and workpolitics which might goad or impinge anemployee's efforts at his/her job.

Increased Job Identification would be evinced inan employee's on-the-work and off-the-workschedules. On-the-work schedules include anemployee's love for his/her job which is evidencedin his/her propensity to remain committed to his/her job, enhanced intellectual curiosity andstimulation vis-à-vis his/her job, increased jobpassion (Ho, Wong, & Lee, 2011), working withabsorbed attention in his/her job, attachingimportance to his/her job (Rabinowitz, & Hall,1977), taking up additional responsibilities relatedto the job and working for longer hours, if needed.In other words, such an employee would fall withinthe rubric of an "engaged employee". An "engagedemployee" is defined as one who has enthusiasmfor his/her job and exerts high levels of energy inhis/her job while not being able to detach from it(Schaufeli, & Bakker, 2004). Off-the-workschedules include an employee's sense of pride inhis/her job which gets reflected in his/herenvironmental interactions (family, peers, society).

An individual employee who strongly identifieswith his/her job would do all justice with his/her in-role performance. Thus, his/her psychologicalcapital (Luthans, 2002) would be high.



Psychological capital emphasizes on people'sstrength and how they can grow and thrive in theworkplace. It has been defined as an individual'spositive psychological state that is characterizedby four personal qualities, namely efficacy,optimism, hope, and resilience. And, s/he wouldchannel his/her creative faculties towardsinnovative attempts. S/he would take calculatedrisks in the job, and, given the desired autonomy,take on new novel challenges. S/he would employnew methods, tools and methodologies in his/herday-to-day tasks. And, to meet his/her dailytargets, s/he would be willing to make small andbig sacrifices on his/her personal front too.

CONSEQUENCES

Hitherto, literature has dealt with "organizationalprestige" (Ashforth, & Mael, 1989). The paperposits that job identification would lead to thefeeling of enhanced "job prestige". Fundamentally,"job prestige" is a function of all those jobdimensions which help establish a positive statusabout the job. An employee is more than satisfiedwith what his/her job is all about. This would helpenhance his/her self-esteem (For instance, anindividual's enhanced self-esteem with reference tohis/her feeling of organizational identification(Ashforth, & Mael, 1989)). "Job prestige" may bedefined in terms of the esteem and pride which anemployee feels about his/her job. Such a feeling ofprestige emanates from an employee'sidentification with the job. Since, "one of the mostimportant tasks that organizations face today isthat of bringing their employees to a high degree ofemotional identification" (Carmeli, 2005: 461),therefore, Job Identification becomes a significantprecursor to organizational identification,

especially where emotional identification with thejob is involved.

The consequences of increased Job Identificationare reflected in positive and negative behaviors.The positive behaviors include increased JobInvolvement, Job Satisfaction (Locke, 1976),better performance (Lawler, & Hall, 1970), anemployee's propensity to stay in the organization(Meyer, & Allen, 1997) and increasedorganizational identification. The negativebehaviors include job alienation, conflicts atworkplace, absenteeism (Blau, & Boal, 1987),stress and quitting (Blau, & Boal, 1987). Jobidentification necessarily includes sacrifices, asstated earlier. Such sacrifices may pertain to his/her health or relationships. And, both woulddeteriorate his/her work-life equilibrium. Thus,excessive Job Identification may have its negativerepercussions on a person's psychological, socialand mental health. Overly indulgence in JobIdentification may lead to his/her obsessivebehaviors with regard to his/her job so much sothat s/he might be alienation from his/her familyand near ones also thereby culminating in anoverall declivity in a person's quality of life(Lambert, 2008). There might result work-lifeimbalance and family conflicts which would impairhis/her efficiency sooner or later. However, it maybe pertinent to note that workaholic employeesare not necessarily passionate about their jobs(Schaufeli et al., 2008).

A similar concern has been expressed in literatureon excessive Job Involvement which leads toimbalance in a person's life (Griffin, Hogan,Lambert, Tucker, & Baker, 2009). Apart fromthis, strong identification with the job should also



lead to career development and growth. This maybe attributed to the fact that since an individualemployee puts his/her best efforts in the job,therefore, it is likely that s/he would "expect"reward and recognition for his/her performance.

DECLINE IN JOB IDENTIFICATION

Defining and identifying oneself with the job as if itis defining oneself may not always be followed asa ritual. Both the extremes of job alienation as wellas Job Identification are balanced on the fulcrumof work motivation. An employee's workmotivation and hence his/her overall JobIdentification is liable to decelerate with time. Yetagain, there runs a sequential pattern ofantecedents and consequences vis-à-vis a declinein job identification. This decline may eventuallylead to job disidentification as well. Hence, theentire approach of perceiving his/her job wouldchange. There would be decreased or total neglecton the part of the employee for his/her job. Jobsearch and the consequent turnover intention mayalso be associated with some off-the-job factors,"shocks" or jarring events, such as receiving anunsolicited job offer or an addition or demise of afamily member (Lee, & Mitchell, 1994; Mitchell,Holtom, Lee, Sablynski, & Frez, 2001). Similarly,internal or on-the-job shocks include hiring of anew supervisor, being passed over for promotionor a change in the company's strategic mission(Lee, Mitchell, Wise, & Fireman, 1996). Thefollowing sub-sections shall delve further into thisaspect now.

ANTECEDENTS

More often than not, decline in Job Identificationshould be related to the temporal aspects. In other

words, the amount of time spent on the job, whichonce constituted an employee's significant self,would decline. Not being able to devote therequisite time for his/her job may be linked withcertain controlled or uncontrolled dimensions.Thus, there may be a genuine decline in the job perse. The job may appear monotonous with time orthere might be a lack of enthusiasm in the jobowing to some alternative job which might appearmore appealing. Alternatively, an individual'spropensity to like his/her job may decline as aresult of economic downturn. Personal factors likeincreased family responsibility, stress and healthmay impede job identification overtime. Prolongedsickness of the individual or a family member isliable to take a toll on an employee's interest in his/her job. Age may also be an impeding factor. It isalso possible that for the sheer pursuit of somehobby or vocation, his/her interest in the job maybe channelized to his/her lately developedinclination or pursuit. Family ties may makemandatory and significant demands on the time ofthe employee, which may not be denied. In theworking couples' families, location and workpreferences may consume a large chunk of anemployee's time. Thus, the role of life's criticalevents (Lee, & Mitchell, 1994) may serve todissociate an employee from his/her organization.For instance, a nurse's intention to nurture herbaby may lead to her resignation (Russell, & Sell,2012: 135). Further, dimensions associated withthe organization like poor working conditions; badrelationships with the supervisor, subordinates andpeers and low Job Satisfaction may lead to jobidentification. Non-congruence of the individualgoals vis-à-vis the organizational goals may resultin the decline of job identification as well.



However, it is not mandatory that organizationalidentification and Job Identification would operatein tandem. Occupational stress may be anotherreason for his/her job disidentification.

Decline in Job Identification may also be a subsetof the lack of his/her "expected" career growthand advancement. Jealousy and rivalry in theorganization owing to his/her expertise in the jobmay invite unwanted troubles from his/her peers.Thus, organizational politics may impede anemployee's further chances of advancement andgrowth, thereby declining his/her overall moraleand motivation to work.

Also, factors like decision of the company to cutdown the employee strength for trimming andpruning the organization; contingent staffing;electronic monitoring and variable pay (Batt,Colvin, & Keefe, 2002); technologicalupgradation (with emphasis on head-content,instead of head-count); ongoing downsizingleading to uncertainty and demoralization (Batt,Colvin, & Keefe, 2002); organizationalrestructuring, including mergers and acquisitions;size of the organization (Balkin, & Gomez-Mejia,1990); number of females in the organization andthe number of employees with a college degree(Batt, Colvin, & Keefe, 2002); closing down of aparticular unprofitable unit (Rusbult, Farrell,Rogers, & Mainous III, 1988); physicallydangerous work (Viscusi, 1979); saving costs forestablishing a new unit or for introducing a newprocess or technology or foreign expertise, maylead to increased employee turnover.

It may be pertinent to note that even theorganizations engage in head-hunting practices.Thus, they too are engaged in the "search" for the

"right candidate", and, prefer to remove theunderperformers. With stiff market competition,poaching and head-hunting (Capelli, 2000)ensures the induction of strategic employees (forinstance, those who may have effected aturnaround in a rival organization, or, helpedcapture a significant market share) withassurances of handsome perks and compensationpackages. Employee exit may also be initiated bythe organization owing to serious illness of theemployee or employee's demise. Thus,organization would look for the replacement.

Environmental conditions may push the individualemployee to call it quits one day. Overalleconomic gloom may lead to his/her search forbetter options elsewhere. This becomes moreconspicuous when the economic boom returnsand the employee might be unwilling to make acomeback to his/her previous job on account ofseveral factors (For instance, better pay andperks; his/her development of affiliation with thenew job; changed work environment which ismore appealing). Remuneration has alwaysserved as motivator for the employees to stay inthe organization, and, in the event that the rivalorganization is willing to offer a better salarypackage, quitting appears a viable option beforean employee. Also, better promotion avenues,perks and perceived brand image of the rivalorganization may impel the job switching.

Employee would evince less interest in his/herjob. S/he would be spending more time with his/her family or his/her friends. The sense of identityand prestige associated with his/her job woulddecline. This might also be the result of his/hernearing his/her superannuation. S/he would be



devoting his/her time on aspects which areunlinked with his/her present job. For instance, s/he would be on the look-out for searching newjobs.

CONSEQUENCES

Both individual as well as organizational outcomesmay result owing to the decline in JobIdentification. This is akin to "self-estrangement"."Self estrangement" results when the employeedoes not gain anything intrinsically meaningful,rewarding and satisfying from his/her job (Seeman,1971). Absenteeism, job alienation behaviors,turnover, procrastination may be the immediatesigns of an employee's job disidentification.Further, s/he would indulge in unproductivebehaviors like quarrelling or squandering away thetime at work. S/he might indulge in job searchbehaviors or look for alternative occupations.

ORGANIZATIONAL EFFORTS ATSUSTAINING AN EMPLOYEE'S JOBIDENTIFICATION

Decline in Job Identification would result inincreased turnover and increase costs for anorganization. Thus, an organization needs to beproactive in preempting the employee'sdissociation with an organization. Perceivedalternatives do not always predict turnover(Michaels, & Spector, 1982). And, if an employeeperceives that there are significant costs of leavingthe organization, then s/he would be motivated tostay on. In fact, employees continuously makeinvestments in organizations (Farrell, & Rusbult,1981), such as expending job effort, makingfriendships, developing skills, and, engaging instriking political deals which consume time before

fruition (Ref. Becker's (1960) side-bet theory;Shore, Tetrick, Shore, & Barksdale, 2000). Thus,an employee may not wish to severe ties with theco-workers, or, forego benefits associated withhis/her long-term association with the organization.The "feel good" factor linked with an organization'sassociation would make work enjoyable (Meyer,& Allen, 1991). Also, occupational commitment(Lee et al., 2004) with an engrossing workassignment may suppress organizationaldissociation tendencies (Blau, 2009). Thus, thepossibility of the realization of an employee's goalsin the current organization would counter his/herquitting thoughts.

Thus, higher Perceived Organizational Support(POS) (Eisenberger, Stinglhamber, Vandenberghe,Sucharski, & Rhoades, 2002), PerceivedSupervisor Support (Eisenberger et al., 2002;Stinglhamber, & Vandenberghe, 2003),Organizational Affective Commitment (Meyer,Becker, & Vandenberghe, 2004) and AffectiveCommitment to the Supervisor (Stinglhamber, &Vandenberghe, 2003) would decrease employeeturnover. Also, an employee is more likely toidentify himself/herself with an organization whichis itself a high-performing one, as this is reflectiveof the congruency with his/her self-concept(Ashforth, & Mael, 1989; Tajfel, & Turner, 1979).Thus, adequate social and psychological support(Mitchell, Holtom, Lee, Sablynski, & Erez, 2001)from family and reference groups (colleagues,friends, society, well-wishers) may serve tocounter the turnover tendencies. Gouldner's(1957) work on cosmopolitan-local construct is acase in point. Thus, cosmopolitans are thoseemployees who are, "… low on loyalty to theemploying organization, high on commitment to



specialized role skills, and, likely to use an outerreference group orientation". Locals, on the otherhand, are those employees, who are "… high onloyalty to the employing organization, low oncommitment to specialized role skills, and likely touse an inner reference group orientation."Empirical research has predicted a diverse set ofresults vis-à-vis this construct in different settings,though.

Apart from this, the perceived failure of the pastquitting decisions would goad an employee to stayin the present organization (Becker, 1960).Further personality factors affect the intention tostay in the organization. Thus, highly self-motivated individuals ("internals") who areachievement-oriented and are good performers(Judge, Thoresen, Bono, & Patton, 2001), reportgreater Job Satisfaction and lower turnoverintentions (Renn and Vandenberg, 1991).Similarly, emotional adjustment was positivelylinked to Job Involvement (retention) (Hough,Eaton, Dunnette, Kamp, & McCloy, 1990). And,extroverts are more likely to have strongfriendships at work (Tokar, & Fischer, 1998),and, hence attach significant values to their workrelationships.

Apart from this, "non-work" factors (Cohen,1995) may also ascertain employee's intention tostay. Thus, an employee may be "embedded" inhis/her job owing to his/her affiliation to a religious/community association or a working spouse orchildren enrolled in a particular school (Mitchell etal., 2001). Attempts to comply with the moral/religious tenets (for example, "work is worship","perseverance is the key to success") (Niles,1999) would desist individuals from quitting. In a

similar vein, factors like higher age, marital statusand having children to take care of are associatedwith an employee's likelihood to stay with thecurrent organization, rather than to leave(Abelson, & Baysinger, 1984). Furthermore,educational and professional qualifications withrelevant work experience would definitely propeljob search behavior (Silvers, & Lara Valencia,1990).

Thus, owing to the employee turnover,organizations encounter the loss of theexperience, knowledge and the talent as well asthe delays in their output delivery (Abelson, &Baysinger, 1984). Hence, retention of theemployees takes primacy over everything else."Workforces are increasingly uncommitted"(KPMG Report, 2012), and, retention is thebiggest challenge before the HR wing. After all,this also impinges upon its brand value vis-à-visthe rivals. Thus, "firms are trying to improve theirknowledge management capabilities bystrengthening employee trust" (Adler, 2001).Organizations incur turnover costs (Bentein,Vandenberg, Vandenberghe, & Stinglhamber,2005) owing to the erosion of employees' tacit orspecialized knowledge, which makes them lesseasily replaceable (Guthrie, 2001). Organizationsalso realize the sunk costs incurred while trainingand socializing the employees. Attempts are,therefore, made to intercept the attempts of theemployees showing inclination to move byproviding them with more engaging work, asupportive work climate, and, other developmentand advancement opportunities (Guthrie, 2001;Huselid, 1995). In fact, the role of management isto take care of the workers and include them as apart of manager's "extended family" (Teagarden,Butler, & Glinow, 1992).



Linkage of perceived fairness of pay proceduresand perceived fairness of pay amounts has beenassociated with employee satisfaction, therebynegatively predicting employee turnover (Hom, &Griffeth, 1995). Organizations should encourageindividual incentives (Griffeth et al., 2000; Lum,Kervin, Clark, Reid, & Sirola, 1998; Tekleab,Bartol, & Liu, 2005) as well as group incentives(Batt et al., 2002) and recognition of their highperforming employees. Promotion, advancement,rewards and remuneration should be suitablydesigned by the organization. Employeedevelopment activities may be promoted includingspecial assignments, job rotation, participation intask forces, projects or committees and otherevents in which something is learned or skills aredeveloped (McCauley, 1986). Employees shouldbe accorded sufficient autonomy in their workprofile. Sharing information with the employeesleads to greater participation of the employees inthe decision-making process, especially the onesentailing strategic decisions (Rousseau, &Shperling, 2003).

"Enriched or enhanced" jobs (Hackman, &Oldham, 1980; Hom, & Griffeth, 1995) mayresult in "job embeddedness" (Holtom, Mitchell,Lee, & Eberly, 2008) when the employees aregiven the opportunity to develop and enhance theirskills effectively. Direct linkage has been reportedbetween retention and sound internal promotion/mobility policies (Batt et al., 2002). Organization-initiated encouragement should be accorded toself-managed teams (Cohen, & Bailey, 1997) andoffline problem-solving groups (Batt et al., 2002).Employees should be coached and mentored(Payne, & Huffman, 2005) and socialized(Kreiner, & Ashforth, 2004; Saks, & Waldman,

1998) to ensure a congruency between employeepreferences and organizational staffing practices(Holtom, Lee, & Tidd, 2002). Further, turnoverdecreases with more role clarity (Price, 1975).Thus, the HR policies may be designed keepingprovision for flexible work policies and individualaccommodations, as far as feasible.

All these measures would result in strongerattachment, identification, psychologicalownership, empowerment and commitment to theorganization (Meyer, & Allen, 1991, 1997;Rousseau, & Shperling, 2003). When theemployee would be perceived as more pivotal ororganizationally central (Staw, 1980), it wouldensure development of a sense of belonging and afortified social capital (Lee et al., 2004). Further,this would enhance "organizational embeddedness"(Ng, & Feldman, 2011) such that employeeswould align their individual interests and behaviorswith the interests that benefit the organization(Dutton, Dukerich, & Harquail, 1994) byinternalizing their organization's attributes as theirown (Mael, & Ashforth, 1995). Suitable stress-management interventions including copingmechanisms may also be introduced in theorganization to relieve the worked-up employees.

Thus, flexible employment practices need to befollowed by the organizations in order to facilitateemployee stickiness. As far as the intervention onthe part of the managers in checking theiremployees' propensity to leave is concerned, it hasbeen suggested (Swider, Boswell, & Zimmerman,2010) that the former need to adopt a moreproactive approach by ensuring that the employeesare prevented from searching in the first place. Themanagers should interact with the employees and



be aware of any requests for references. Themanagers should also liaison with the outside firmswhich call upon them for employment verificationof their employees. However, the authors add acaveat here, stating that managers should notassume that "that employees who search foralternative employment are necessary "disloyal"but rather… recognize the potential for andimportance of retaining these individuals,especially if they are high performers" (Swider,Boswell, & Zimmerman, 2010: 439).

Apart from this, organizations should introduce"integration and learning" diversity which would, inturn, facilitate improvement in organizationalperformance by facilitating the learning of newwork methods and approaches (Thomas, & Ely,1996). Such an approach would help in theincorporation of diverse perspectives andexperiences of the employees, as well as theirways of working. Thus, the organization would bein a better position to integrate these variedexperiences and views and re-align the tasks,strategies and culture (Cox, 1994). Occasionalget-together and events' celebrations (birthdays,cultural creativity, feasts, sports and games) wouldensure greater coherence and bonding among theemployees.

Even the employer may help the employee toresolve their work-family dichotomous issues(Maertz et al., 1996). Thus, family obligations likechild-rearing or elder care may be taken care ofby the employers (Tiano, 1994).

CONCLUSION

Job Identification is an under-explored concept inthe organizational literature. The conceptualization

needs to be studied in delineation with the JobInvolvement and organizational commitment forbetter clarity. The present paper strove tounderscore the antecedents and consequences ofJob Identification and the decline in JobIdentification, with particular reference toturnover. Research may underscore thesignificance of "job prestige" as a psycho-socialconceptualization in strengthening JobIdentification. Further, other identificationconcepts like "role identification" and "teamidentification" may be studied in the context of theorganizational commitment and employeeturnover across different professions/occupations.It is expected that the paper would serve as areference frame for the researchers to appreciatethe finer dimensions of job identification.

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Q U O T E S

Yesterday is gone. Tomorrow has not yet come. We have only today. Let us beginMother Teresa

Kind words can be short and easy to speak, but their echoes are truly endlessMother Teresa

Not all of us can do great things. But we can do small things with great loveMother Teresa

Pleasure should be pursued just for supporting the body and not for gratifying itMahabharata


Does Work Attitude result into Work Behavior for older andyounger generation?

INTRODUCTION

'Attitude', 'work', and 'generation' as conceptsoriginated in different disciplines of social sciences.Attitude primarily belongs to social psychology,whereas work and generation are offshoots ofsociology. The present paper makes an endeavourto unravel the relationship between work attitudeand work behaviour across generations. There is adearth of literature that focuses on the relationshipbetween attitude and behaviour at workplace.Lack of attention to attitude and behaviourrelationship can be attributed to an assumption thatattitudes in general results into a given behaviour,they are generally tandem in nature. In otherwords, a person's behaviour is generally governed

*Vibhav Singh, Ph.D Student, Tata Institute of Social Sciences, Mumbai, India.Email: [email protected]

Vibhav Singh*

RESEARCH NOTE

ABSTRACT

Behaviour of an employee in the organizational setup is expected to be well defined and there is adiminutive scope for an employee to deviate. However, there are instances when our work behaviour isgoverned by our work attitude and other key reasons. The present paper attempts to explore the complexrelationship between attitude and behaviour in the organizational setup across generations. Constructivistapproach has been adopted to unravel this dynamic relationship. 18 employees from the older and theyounger generations were interviewed. Thematic analysis was used to analyse the data. The presentstudy found that there is a weak relationship between work attitude and work behaviour across thegenerations but the reasons for the same differs across generations.

KEY WORDS: Work Attitudes, Work Behaviour, Generations.

by the attitude towards an object. Attitude wasintroduced in social psychology as an explanatorydevice in an attempt to understand humanbehaviour (Ajzen 1991). Studies carried out by LaPerie (1934) and Wicker (1969) brought aparadigm shift. It was reported that attitude is notalways be the cause and reason for behaviour.This led to the investigation of potentialmoderators and mediators of the attitude-behaviour relationship (Armitage and Christian2003).

The current study does not advocate all or nonestand in relation to attitude being related tobehaviour or people behaving in accordance totheir attitude. Across the generations there is a


divided stand. There are occasions when attitudeindeed governs behaviour and there are instanceswhen the relation between them is extremelyweak. The present study has makes an attempt tounravel the reasons behind such conflicting findingswith the help of theory of planned behaviour.

The multi-component view of attitude is used toexplain the low empirical relation between attitudeand behaviour. This provides the range ofbehaviours that can be used to infer a person'sbehaviour; some responses might be reflective ofaffective and cognitive components and others ofbehavioural component. However, multi-component view does not provide full account ofrelationship between attitude and behaviour. As itis not clear whether behaviour is determined byattitude as a whole or merely by its conative(emotional/affective) component. Anotherapproach that aids to explain the low empiricalrelationship between attitude and behaviour is theconcept of moderating affects of the othervariable. In the given context, if the subject hasrequired degree of skill to perform a job inquestion, he is likely to perform well. In this case,the ability is seen as a variable that interacts withthe attitude in determining variable. However, it isseen that these 'other variables' sometime do andsometimes do not have moderating andindependent influence. Studies have shown thatimmediate predictor of behaviour is the intentionto perform the behaviour, theory of plannedbehaviour deals with the concept of intention. Inthe present study, theory of planned behaviour hasundertaken to explain the relationship betweenattitude and behaviour (Fishbein and Ajzen 1975).

In view of above stated limitations, the present

research applies theory of planned behaviour toexplain relationship between attitude andbehaviour. The theory of planned behaviour is anextension to the theory of reasoned actions; itaddresses the limitations of the same by dealingwith behaviours over which people haveincomplete volitional control (Ajzen 1991).

METHODOLOGY

OBJECTIVE: To explore the relationshipbetween work attitude and work behaviouracross generations

THEORETICAL FRAMEWORK: Presentstudy falls under the constructivist paradigm. Itadopts social constructionist approach to unravelthe reality. It is assumed that its participants areconstructing reality and it can be understood byunderstanding its process of its construction.

METHOD: In-depth interview as a tool wasused with interview as a method. Rationalebehind selecting in-depth interview was to unravelmultiple levels of realties from the participant'sperspective. In-depth interview unfolds data thatthis grounded in the field.

SAMPLE PROFILE AND SAMPLE SIZE:Employees from older and younger generationwere drawn out using theoretical sampling.Another criteria for selecting the sample wereemployees should have been associated with theiremployers for at least two years. 18 interviewsacross generations from various cross-sections oforganizations were taken. Nine from eachgeneration, gender -based bifurcation is 16 malesand 2 females.

DATA ANALYSIS: Data was analysed using

Does Work Attitude result into Work Behavior for older and younger generation?


thematic analysis. Thematic analysis is based onthe premise of encoding qualitative information.

FINDINGS AND DISCUSSION

Older and the younger generation reportsinstances wherein their work attitude has notcorresponded to their work behaviour. However,the reasons attributed for the weak relationshipbetween work behaviour and work attitude differsfor older and younger generation. The presentstudy as stated above applies theory of plannedbehaviour (Ajzen 1975) to explain this dynamicrelationship.

According to the theory of planned behaviour,human action is influenced by three major factors:a favourable or unfavourable evaluation of thebehaviour (attitude towards behaviour), perceived

1Before 1985 (pre-liberalisation) are considered as the older generation and those who have joined the workforce after 1991 (post-liberalisation) are part of the younger generation.2Rationale behind taking two years of association with the organization is that individual do take time to identify with the organizationand the kind of work they are suppose to do.

social pressure to perform or not perform thebehaviour (subjective norm), and perceivedcapability to perform the behaviour (perceivedbehavioural control). These three components leadto the formation of behavioural intention (Ajzen1991). Therefore, favourable the attitude towardsbehaviour, subjective norm, and greater perceivedbehavioural control there is a likelihood that thestronger the person's intention to perform thebehaviour in question. While carrying out work, aperson assesses the attitude towards workbehaviour as well as the perception of socialpressure to do so, and perceived control over thisbehaviour. Therefore, together these elements aregoing to predict intentions to work or not to work.Actual working should correspond to the intentionto the extent that the participant has the authorityto carry out work.

Behaviouralbeliefs

Normativebeliefs

Control beliefs

Attitude towardsthe behaviour

Subjective Norm

Perceivedbehaviourcontrol

Intention Behaviour

Actualcontrol

Source: Theory of planned behaviour (Ajzen 1991)



SITUATIONS IN WHICH WORKATTITUDES DO NOT RESULT INTOCORRESPONDING WORK BEHAVIOURExtant literature profess conflicting findings, that is,some of the research suggests that attitude andbehaviour are related to each other whereas thereis an another section of studies that question's therelationship between them (Suazo 2009, Carmeli2003). In the present study it is seen that on manyoccasions participants are unable to behave inaccordance to their attitude and state ofdissonance that they undergo. There are situationswhen they have non-positive work attitude butdemonstrate positive work behaviour. Situationsunder which they feel the state of dissonance aredifferent for the younger and the older generation.For the younger generation, dissonance ariseswhen nature of work is not of their kind and theirefforts are quashed for inexplicable reasons. Theyfeel that since others are going to form impressionabout them and their personality, it is safer tobehave in socially desirable way. Therefore, evenif they do not have a non-positive attitude towardswork their work behaviour is of high standards.Forthe older generation, it happens when they aredropped from promotion, are not having goodinterpersonal relationship with boss, conflict withmanagement, when people are not working. Oneof the participants elucidates by quoting anincident.

I was in Pata and my executive director wasincharge of plants we had certain differences interm of opinion. His officer incharge would saywork has to be done in given time frame, I alsowanted the work to be done in the same timeframe but then procedures should also be given itsspace and importance…but then so are the

system procedure, financial prudence etc. I hadto follow what my boss and do the job in the timeframe and let go the procedures. I feel that even ifI have non-positive orientation towards work butI had to give my best to the work. (Paritosh,older generation)

APPLYING THE THEORY OF PLANNEDBEHAVIOUR IN THE GIVEN CONTEXTThe nature of non-liner relationship betweenwork attitude and work behaviour is that peoplehold non-positive attitude towards work but theirwork behaviour is positive.

SOCIETAL NORMS: It is observed thatpeople in the Indian society are highly governedby subjective norms. Indian society is directed bythe concept of nishkam karmayoga propagatingthat people should work selflessly without beingoutcome oriented. Younger generation considerswork as a contribution that one should make butfor varied reasons. For some, it is a way ofcontributing to the society, if they work hard theprofit of company will soar hence higher thecontribution to Corporate Social Responsibility(CSR) and make world better place to work.Others feel that it is one of the ways ofdeveloping personality. According to the oldergeneration, society terms 'not working' as wastingtime, which is not considered good for society ata larger level. Work helps the personal andprofessional fulfilment. Since work is conceivedas the immediate identity of people, so it becomesimperative for employees to work to prove theiridentity to avoid being termed as 'useless'.Therefore, there is a likelihood that people aregoing to give their best to the work even thoughthey do not possess positive attitude towards it.



Participants amongst the older generation state thatanother reason for their positive work behaviour isthat they cannot fight against system andmanagement and want to maintain healthyinterpersonal relationship with everyone. Resultand betterment of the organisation is also one ofthe potent factors. Whereas for the youngergeneration the reason is professionalism andrecognition that motivates people to behave insocially accepted manner with respect to theirwork irrespective of their attitude.

Yeah yeah, it has been so times. The day I hadjoined audit (dislike it).. Sometime the kind of bossyou have can also be one of the possiblereasons… there is something like professionalism.I must not forget that I am first a professional andthen an employee of any organisation. Therefore, Iwould be recognised and that recognition shouldremain one of the important elements in my life.Being a professional it is important to strive fordoing something different and dynamic. (PKY)

PERCEIVED BEHAVIOURAL CONTROLWithin the organisational context where theindividual is bounded by various rules andregulations, there is a less likelihood that peopleare going to be high on perceived behaviouralcontrol. Employees across the generations havesaid that on several occasions they have felt lackof perceived behavioural control. Several reasonshave been cited by both the generations in demandto increase perceived behavioural control. Theolder generation put forth the view that thereshould be higher perceived control so that they willbe able to work wholeheartedly. In addition, it is aspecialised works and their involvement isimperative. They state that 'we are the major force

contributing to work so we can come up withadditional information and value addition'. It canbe also considered as one of the ways ofrecognising people. In order to have effectivefunction, it is important to make employee awareof the pros and cons of what they are doing.Another section of respondents feel that it mightnot be possible to provide with higher degree ofperceived control due the limitation of theorganisation (decision might be in favour ofindividual and not in favour of organisation).However, their opinions must be taken and effortshould be taken to make them part of key issuesthat is going to effect them directly.

On the similar lines, younger generation states thatone of the first step towards making the employeetake ownership of his work. Also that while takingdecision, management may not be aware ofground reality and that the employees can makethem aware of that. Certain section of them feelthat it is their right to be part of the decision-making process. Others feel that even if they arenot being made part of decision making processthey should be taken into confidence byenumerating the reasons and rationale behinddecisions. In general, employees across thegeneration feel that they feel lack of controlregarding the things that are directly related tothem.

From the above arguments, it can be concludedthat since people are governed by the subjectivenorms that are not in consonance to their attitudeand they lack the perceived control, there is alikelihood that they are going to have weakbehaviour intention, which leads to dissonancebetween attitude and behaviour. This scenario



reduces the likelihood of people to behave inaccordance to their work attitude. Therefore, evenif people hold non-positive work attitude towardswork their work behaviour is positive.

IMPLICATION AND CONCLUSION

Attitude and behaviour relationship is dynamic innature. There are certain occasions whereinpeople across generations are able to behave inaccordance to their work attitudes. However, ingeneral, participants across generation find itdifficult to behave in tandem to their work attitude.This has been explained with the help of theory ofplanned behaviour. Organizations need to comeout of the predominant outcome mind-set. Ifemployees are demonstrating positive workbehaviour irrespective of their work attitude,organizations should not neglect the area of workattitude and work behaviour relationship. Anattempt to should be made to bring in rightreasons for right behaviour. Consonance betweenwork attitude and work behaviour should beachieved. It is being hypothesized that whenpositive work attitude is in consonance withpositive work behaviour the intensity and nature ofpositive work behaviour is going to be farstronger. Future studies can put this hypothesis totest.

REFERENCE

1. Ajzen, I. 1991. The theory of plannedbehavior. Organizational Behavior andHuman Decision Processes, Vol. 50, 179-211.

2. Armitage, Christopher J. and Christian, Julie.2003. From Attitudes to Behaviour: Basicand Applied Research on the Theory ofPlanned Behaviour. Current Psychology:Developmental, Learning, Personality, Vol.22, Issue 3, 187-195.

3. Carmeli, A. 2003. The relationship betweenemotional intelligence and work attitudes,behavior and outcomes: An examinationamong senior managers. Journal ofManagerial Psychology, Vol.18 (8), 788-813.

4. Fishbein, M., & Ajzen, I. 1975. Belief,attitude, intention, and behavior: Anintroduction to theory and research.Reading, MA: Addison-Wesle.

5. LaPiere, Richard T. 1934. Attitudes vsActions, in Fazio, Russell H. and Petty,Richard E. (eds.). 2008: Attitudes- TheirStructure, Function and Consequences.New York: Psychology Press.

6. Suazo, M. M. 2009. The mediating role ofpsychological contract violation on therelations between psychological contractbreach and work-related attitudes andbehaviors. Journal of ManagerialPsychology, Vol. 24(2), 136-160.

7. Wicker, Allan W. 1969. Attitudes versusActions: The Relationship of verbal andOvert Behavioural Responses to AttitudeObjects. Journal of Social issues, Vol. XXV(4).



A Note on Exploratory Research

When a researcher has a limited amount ofexperience with or knowledge about a researchissue, Exploratory Research is useful. It ensuresthat a more rigorous, more conclusive future studywill begin with an inadequate understanding of thenature of the problem at hand. Usually,exploratory research provides greaterunderstanding of a concept or crystallizes aproblem. Exploratory research is initial researchconducted to clarify and define the nature of aproblem.

Exploratory Research may be a single researchinvestigation or a series of informal studiesintended to provide background informationResearchers must be creative in the choice ofinformation sources to be investigated. They mustbe flexible enough to investigate all inexpensivesources that may possibly provide information tohelp understand a problem. This need to beflexible does not mean that researchers do nothave to be careful and systematic when designingexploratory research studies.

USES OF EXPLORATORY RESEARCH

DIAGNOSING A SITUATION

Much has already been said about the need forsituation analysis for clarifying problem`s nature.Exploratory research helps diagnose the

This note is compiled from different sources for academic circulation only.*Vijaya Manerikar, Former Director, JBIMS and acting Vice Chancellor University of Mumbai, India.Email: [email protected]**Sumeet Manerikar, Associate Professor, Welingkar Research Centre, We School, Mumbai, India.Email: [email protected]

Vijaya Manerikar* and Sumeet Manerikar**

RESEARCH COMMUNICATION

dimensions of problems so that successiveresearch projects will be on target. It helps setpriorities for research. In some cases exploratoryresearch provides an orientation for researcher bygathering information on a lesser known topic.Although a research project has not yet beenplanned, information about an issue is neededbefore the appropriate diagnosis of the problemcan be developed.

SCREENING ALTERNATIVES

When several opportunities arise but the budgetprecludes investigating all possible options,exploratory research may be used to determine thebest alternatives. Perhaps several goodinvestments are available and exploratory researchcan be used to point to better ones. Or anexploratory look at market data reveals that themarket for a planned new product is too small,and the product launch is not worthwhile.

Although this aspect of exploratory research is nota substitute for conclusive research, certainevaluative information can be acquired inexploratory studies. The need for concept testingis a frequent reason for conducting exploratoryresearch. Concept Testing is a general term formany different research procedures which help inclearing connotations and definitions of a researchproblem to be studied.


DISCOVERING NEW IDEA

Exploratory research is often used to generatenew ideas. An exploratory research based onfactory. Workers' suggestions for increasingproduction or improving safety may be used tofinalize productivity studies in a factory.Consumers' perceptions may be used in a productlaunch study.

CATEGORIES OF EXPLORATORYRESEARCH

A researcher may choose from the followingcategories of exploratory research method,

EXPERIENCE SURVEYS

In order to understand the problem a researchermay discuss the problem with experienced andknowledgeable individuals in the field and use theirinsights for understanding. However thisinformation is not conclusive and best results informulating the problem or objective of the study.e.g. telephonic surveys.

SECONDARY DATA ANALYSIS

Searching through existing data sources is anothermethod of gathering information. Literaturereviews are of great help and are also economical.Synthesizing available secondary data is a methodmeaningful to a researcher. The techniques ofmeta-analysis and meta-synthesis can be

effectively used to analyse secondary datasources.

CASE STUDIES

The purpose of the case study is to obtaininformation from actual situation which is similarto the research problem at hand. However casestudy development is a time consuming process initself. Hence, a researcher can avail of existingdata base of case studies.

PILOT STUDIES

A Pilot Study implies generation of primary databut on a smaller scale. The data collected can beanalysed qualitatively and / or qualitatively. Thesefindings can be used to scientifically formulate theresearch problem and finalise the researchproposal. A survey of employee motivation usinga questionnaire method on a small sample(around 30) is an example of pilot study. Thusexploratory studies have a definite role to play inresearch process. They help in formalizing aresearch proposal and chalking out a full-fledgedresearch study plan.

REFERENCES

1. Zikmund W.G. Business Research Methods(Thomson, 2003).

2. Aaker, Kumar, Day Marketing Research(N.Y. Wiley, 1997).

A Note on Exploratory Research

Q U O T E S

Peace begins with a smileMother Teresa


Strategic Role of HR in Mergers and Acquisitions

The ongoing fragility of global Merger andAcquisitions has impacted deals involving highgrowth markets. Slow progress of economicreforms combined with increasing inflation ratesand depreciation of the Indian currency against theUS dollar have led to an impact on the Mergerand Acquisition activity in India as well. While theyear began on a slow note, the second quarter of2013 did see resurgence in the Mergers andAcquisitions activity on the back of some notablecross border deals such as Apollo Tyres-CoopersTire, Mahindra-CIE along with Unilever's stakeincrease in Hindustan Unilever and the Jet-Etihaddeal , Cognizant Technology solutions acquiringEquinox Consulting , Microsoft decided to buyNokia's Mobile Phone Unit and Services, ABG

*Prachi Jain, Student, PDGM , WeSchool, Mumbai, India.Email: [email protected]

Prachi Jain*

YOUNG MINDS

ABSTRACT

Economists and venture capitalists are predicting an increase in Mergers and Acquisitions as nowadaysorganizations want to grow their market share and presence by building synergies. It is therefore importantto ensure the long-term success of an acquired organization and to achieve combined strength from amatch well made. Through this article an attempt has been made to help HR professionals develop aninsight into their role in M and A deals in the pre, during and post phases of such M and A transactionsas well as in cross border M and A's.

KEY WORDS: Acquisition Hires, Due Diligence, Cultural Audit and Cultural Integration.

acquired Gujarat unit of Jaypee cementCorporation's (JCCL), and many more.

But, did you know that 30 percent and 70 percentof Mergers and Acquisitions fail, mainly due topeople and culture issues taking place in the postacquisitions/mergers periods within firms?According to various studies and researches, HR'sindeed occupy a significant position in acquisition/merger scenarios as HR professionals typicallyplay leadership roles in an acquisition's core duediligence activity and during the integrationprocess.

Prior to explaining the strategic role of an HR, theprocess carried on in the limelight when a dealtakes place is (see figure 1).

This article was presented and first published in the Souvenir Journal of the 'EFI (The Employers' Federation of India)National HRM Summit-2013' held in Mumbai on 24-25 October, 2013.


Figure 1: Background process in a M and A deal.

Acquisitions may range from complex multibillion-dollar deals to small one-person "acquisition-hires". Some deals are completed through privatetransactions and others through auctions managedby investment banks.

However, due diligence with respect toorganization can gain strategic advantage if itinvolves HR in the Mergers and Acquisitions onthe deal table. By doing this many of the seen andunforeseen troubles can be averted. HR presentsan opportunity to affect human capital decisionsthat impact a business's financial value, coachingstrategy leaders and helping them identify andunderstand both merging organization's talent andculture issues associated with the workforce. Acompetitive HR team can demonstrate what thebusiness needs at various stages of the dealprocess. However, in many organizations, HRprofessionals are kept out until the collateraldamage to the organization has actually beenmade.

Companies should conduct a full fledged duediligence cultural audit as a part of acomprehensive pre-deal due diligence process.This will avoid senseless mistakes by increasingsensitivity and awareness thus stimulating muchfaster resolution of key disagreements.

While carrying due diligence process as an HR,firstly gather all the necessary information aboutthe merger/acquisition and bring all human capitalassets in the forefront and identify ways to thatwill help in maximizing their value. Employeerelations, decision making and cultural integrationform the three drivers in the due diligenceprocess.

If HR is in a large organisation, there may bestrategy teams or business developmentdepartment as a whole for the Merger andAcquisition and in a small organisation, theresponsibility of a merger is on the chief operatingofficer/legal department /business head. HRshould stay in contact with at least one of the keyindividuals as in the early stages of a merger oracquisition there are numerous points of influencefor HR professionals. Certain key decisions needto be taken with respect to

Who will be hired and on what terms?

What compensation and benefits will bethere on going forward?

What roles will new and existing employeesplay?

Will your company be acquiring liabilities likeemployment contracts and labour issues?

HR in the pre Merger and Acquisition stage mustanalyse strategic expectations of employees andmust alert the due diligence team to the wayspeople and related organizational or culturalissues can affect the deal's key strategicassumptions. HR should confirm the Leadershipcommitments of the founder employees bycarefully integrating the cultures of the twocompanies validate People costs (salaries,



benefits, programs etc) and potential costreductions and the legal compliances to verify theright of owners to sell the business. HR shouldalso account the corporate attitudes andmanagement style differences. For instance, if oneof the companies follows an autonomous style andother is conservative, but both are very successfulas different entities, it will require special concernwhen they enter into M and A.

HR during the Merger and Acquisition stage mustkeep the trust intact communicating effectively andappropriately as the HR policies and practisesdetermines the condition of employee relations inany organisation. HR may also interview andassess key talent people in an organisation in orderto determine their individual competencies, rolesand potentials for advancement. Along with thisassess the objectives for Merger and Acquisition,the goals to be achieved, and synchronisation of allthe incentives and performance measures to retainthe talent. One also needs to keep a track of thecompatibility of the rewards and recognitionprocedures followed in both the dealingorganisation. The alignment of the pay structures,incentives, stock options etc. is necessary; The ITplatform should be made common across thewhole of new organization. Some other factorsthat may be checked could be the retireeemployee liabilities, health plan liabilities,termination benefits etc.

The role of an HR does not end here. Post thedeal within the organisations, HR has to integratethe workforces, culture and HR programs, buildthe infrastructure required to support a stand-alone business (if divested from its parentcompany), restructure a major operating function

including structure, staffing levels, roles andresponsibilities, and performance metrics,administer the new Total Rewards strategy andframework; and design and implement newcompensation, benefits, and performancemanagement programs to support new strategy.

In cross-border Mergers and Acquisitions, a HRmust get information regarding the merging oracquiring company as is imposed and their impacton employees which is more urgent for theacquired firm in order to understand the goals orideas and the philosophy of the foreign acquiringcompany

Coming towards the end of my article I can onlysay that early HR involvement and a robustdiscovery process will help prepare anorganization for a worthy integration.

ACKNOWLEDGEMENT

Prof. Vijayan Pankajakshan, Dean, HumanResource Academics and Industry InterfaceWeSchool, Mumbai.

REFERENCES

1. Jeffrey A. Schmidt, Making Mergers Work -The Strategic Importance of People: Societyfor Human Resource Management (SHRM),2002.

2. Timothy J. Galpin and Mark Herndon,Mergers and Acquisitions (2007).

3. NASSCOM, HR Connect Journal, Issue 9,October 2008.

4. Webpage: shrmindia.org, role-reversals-case-study.



Title : The Battle for Employment Guarantee

Authors : Reetika Khera

Publisher : Oxford University Press, First Edition 2011

Pages : 307

Price : Rs. 626/-

This edited volume by the author is one of the comprehensive works on the highly controversial theme ofNREGA (National Rural Employment Guarantee Act), enacted in 2005. The volume in wholesome is thesense that NREGA has been studied from diverse angles, ranging from issues like wage payment, corruption,pros and cons for women workers. Based primarily on the survey research by the researchers carried out indifferent pockets of the country, it gives an authentic glimpse into the ground realities of the NREGA'sexecution. The cover page is Sohrab Hura's contribution, where his black-and-white lens has captured theworkers on their way to work.

Broadly speaking, there are four parts in the volume: Part I (Early Days); Part II (Ground Realities); Part III(Contrasting experiences); Part IV (Trouble spots). Thus, Part I gives a comparative summary of the officialNREGA statistics at the state level. Part II is based on the NREGA Survey studies which were conductedin the six Hindi-speaking North-Indian states, in 2008. Part III is primarily case-study in approach, withinstances from Odisha, Himachal Pradesh, Chhatisgarh and Tamil Nadu. Lastly, Part IV discusses the needfor proper grievance redressal mechanisms or of accountability in the system; issues related to the paymentof minimum wage payments and non-payment of minimum wages, and, an unhealthy politicization of NREGA.

Khera, associated with the Indian Institute of Technology, Delhi, on its Faculty, is candid in acknowledgingthe limitations of the volume in that it does not cover all the representative samples from parts other thanNorth India. Thus, regional diversity is seriously lacking in the study, inspite of covering case studies, hereand there. A second limitation of this work lies in the limited scope of the issues. Thus, the work is silent onappraising the productive assets in rural areas, for instance.

Jean Dreze is the introductory author in the volume (Ch. 1, "Employment Guarantee and the Right to Work"),where he speaks of the possible empowerment of the rural laborers, should they be free from the corrupt-ridden practices which have defaced NREGA. With the switch from cash payments to bank payments ofwages under the NREGA, Anindita Adhikari and Kartika Bhatia appraise the "Wage Payments: Can webank on the banks?" (Ch. 6) whether embezzlement of wages did cease in toto. Sudha Narayanan (Ch. 7,"Employment guarantee and child care") delves further into the need for child care facilities at the NREGA

BOOK REVIEW


worksites, which are visibly absent in a majority of cases. The chapter 14, "Breaking the Nexus of Corruption",authored by Jean Dreze, emphasizes on the need for transparency in NREGA. Chapter 15 is "Wage payments:Live without Pay?"authored by Reetika Khera. In the following chapter, "The Perils of Gandhigiri", pennedby Jean Dreze, the main issue being raised is that of naming NREGA as MNREGA (Mahatma GandhiNational Rural Employment Guarantee Act) under the aegis of the ruling Congress government, and, thepoliticization of the entire programme. Chapter 19 of the volume, "Estimating Leakages in India's EmploymentGuarantee", has been authored by Clement Imbert and John Pepp. This brings us to the close of the volume.As a token of appreciation, Amartya Sen, the Noble Laureate, observes:

"… Reetika Khera has led a powerful team of visionary but critical thinkers who have assessed both theachievements that deserve to be recognized and the challenges that have to be addressed. Policy improvementsare dependent on clarity of analysis and penetrating scrutiny, and this book provides a truly major contributionto the understanding of a critically important area of public action..."

Reviewed by: Stuti Saxena, Research Assistant, Indian Institute of Management, Ahmedabad, India.Email: [email protected]

The Battle for Employment Guarantee

Q U O T E S

Leadership is lifting a person's vision to high sights, the raising of a person's performance to ahigher standard, the building of a personality beyond its normal limitations

Peter Drucker

Effective leadership is not about making speeches or being liked;leadership is defined by results not attributes

Peter Drucker


Title : How do Leaders Solve Problems: Fables of Vision, Change,Innovation and Problem Solving

Authors : Suresh Lulla

Publisher : Athena Education Initiatives Pvt. Ltd., (2013)

Pages : 23

Price : Rs. 626/-

"Return on Investment in Quality Improvement is among the highest available to leaders." - Dr. J. M. Juran

FEATURES AND FAILURES

Multinational Banks are known to invest in excellent infrastructure and executives. The lowest designationfor a new campus recruit two decades ago, in India, was nothing less than Vice President. Salariesmatched the designation. The self esteem of these freshly recruited students was always at a zenith. Theywere the prize catch for the most popular campus recruiters - multinational banks.

I was invited by a multinational bank in South Mumbai, the financial capital of India, to experienceexcellence. An autopsy of sorts. Yes, this branch of the bank had marble flooring, piped music, art thatonly a successful bank could afford personal computers at every desk, and more. Perfect!

The head of the branch took me around to meet with several of his executives. I will focus on one200 square feet section that was partitioned with a three feet high wall. This section seated four executives,in the four corners, facing the partition wall. All four in pin striped suits. Each of the four was verybusy working on his dedicated personal computer.

Conversation: The Qualitist and the Banker

Qualitist: What is the activity of this section?

Banker: They print the monthly statements of the account holders.

Qualitist: Oh, they manufacture monthly statements.

Banker:???

Qualitist: What is the failure rate of the monthly statements?

Banker: Can' t you see, it' s all computerised?

Qualitist: Oh. I see. Do any customers come back for reconciliation?"

BOOK EXCERPT


Banker: Hardly any

Qualitist: How many?

Banker: Perhaps 1 in 200!

Qualitist: Ah, ha! That's a 0.5% failure rate! So what's the cost of the failure?

Banker: Minimal!

Qualitist: Let's find out.

The branch head and I invested a half-day finding out what work the four executives actually did.As it turned out, one needed the equivalent of two persons to do 99.5% of the work right the firsttime and the equivalent of another two to correct 0.5% failures!

So what is the Cost Of Poor Quality (COPQ) of this section? It's 50% of the budget for thatdepartment plus the equivalent of marble flooring, piped music, and art.

The bank heard the alarm. They commenced their pilot projects by working on COPQ for the autoloan process in South India.

LESSONS

" COPQ is alive and well in every service process.

" A low failure r ate can disguise a high COPQ.

" COPQ is an opportunity.

" Problems for pilot projects should have high visibility.

" Quality has two arms: product / service features and freedom from deficiencies.

(Suresh Lulla founded India's first dedicated Quality Management consulting firm, QimproConsultants, in 1987. Since its inception Qimpro, has helped save Rs. 175 billion (or Rs. 17,500crores) for organisations across industries.)

Note: This ebook is free for download and personal use only. All illustrations, images, etc. belongto and are a copyright of Athena Education Initiatives Pvt. Ltd.

How do Leaders Solve Problems: Fables of Vision, Change, Innovation and Problem Solving

POEM

All words used,All emotions described,All philosophies stated,

What to say when all is said.So if what is being said is not adding

something to the world's gainingBut the one who is saying

is an addition to a tribe following:Addition to a tribe of people who

have realised that life is livedmost beautifully when thrivedin moments before finish line

than after the line.Addition to a tribe of people whoWalked the path and as they did

painted the town in their midnot red, but white, experiencing strife

and mixing all hues of life.Addition to a tribe of people whohave realised that what is worthy

is not always popular o' babyand that which is trendy

is not always valuable medley.Addition to a tribe of people whodo somethings (like writing poetry)for the sheer joy of it and beautyand not for power or attachment

and neither for paisa nor achievement.Addition to a tribe of people who

know that memories fade and slow,hundred thoughts come fleeting and go

this (writing) is a tool ableto convert ephemeral to eternal.

What to say when all is saidSwar Kranti*

*Swar Kranti, Faculty, Human Resource, We School, Mumbai, India.Email: [email protected]


aweshkar - welingkar vol. xvii issue 1 march 2014 weschool 2 a peer reviewed research journal...

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