SuGyaan 1

Volume IV, Issue II

ISSN - 0975-4032 Volume IV Issue II July - December, 2012

RESEARCH ARTICLES

L.S. Sridhar & Return and Volatility Analysis Of National Stock Exchange Punithavathy Pandian (NSE) Nifty Junior Companies

Meena Dorathi Teacher Burnout: A Study of Teachers at Select Schools

Sobia Amreen Motivational Need Prioritization and Perceived Success-AnEmpirical Study

Rajiv Bramhanand Khaire Human Resource Practices in ISO Certified Small & MediumEnterprises (SME) in Nagpur region

A. Sudhakar & Social and Behavioural Impact of SBLP on Beneficiaries:M.S Rama Devi, A Study in Select Districts of Andhra Pradesh

K.Jayarama Reddy Retail Service Measurement: A Review of Research Literature

CASE STUDY WITH TEACHING NOTES

Pavan Patel Black MagicK.V.S.Krishnamohan

BOOK REVIEWS

S.V.Ramanarao Discover the Diamond in YouK.V.S.Krishnamohan

Chief Patron: Mrs. Aarathy SampathyPresident and CEOSiva Sivani Group of Institutions, Secunderabad.

Patron: Mr. Sailesh SampathyVice President and Deputy CEOSiva Sivani Group of Institutions, Secunderabad.

Editor: Dr. V. G. ChariDirector - AcademicSiva Sivani Institute of Management.

Assistant Editor: Dr. Kompalli Sasi KumarAssociate Professor, Finance AreaSiva Sivani Institute of Management.

Editorial Advisory and Review Panel

Dr. Ashish Sadh, Professor, Marketing area, IIM Indore

Dr. Cullen Habel, Lecturer in Marketing, The University of Adelaide Business School, South Australia

Prof. Anantha S Babbili, Professor in Media and Communication, Texas A&M Univeristy, Corpus Christi.

Dr. C. Gopalkrishnan, Director & Professor of Strategic Management,Institute of Management, Nirma University, Ahmedabad

Dr. H.K. Jayavelu, Professor- HR, IIM K

Dr. Prashanth N Bharadwaj, Dean’s Associate and Professor, Indiana University ofPennsylvania, USA

Dr. B. Rajashekar, Reader, School of Management Studies, University of Hyderabad,

Dr. Rajendra Nargundkar, Director, IMT, Nagpur

Dr.A.Sudhakar, Professor & Registarar, Department of Commerce, Dr.B.R.A.O.U, Hyderabad.

Dr. G.B. Reddy, Associate Professor, Department of law, Osmania University, Hyderabad

Dr. S.M. Vijaykumar, Professor - OB & HRM,Chairperson - Research & Ph.D. IMT Nagpur

Dr. Yerram Raju. B, Regional Director, PRMIA, Hyderabad

Dr. Shahaida. P, Associate Professor –Marketing, ASCI, Hyderabad

Prof. V. Venkaiah, Vice Chancellor, Krishna University, Machilipatnam, A.P.

Prof. M. Kamalakar, Operations and IT Area, SSIM

Dr. V. G. Chari, Professor –Finance Area & Director- Academics, SSIM,

Dr. P.V. S. Sai, Director, Training and Consultancy, SSIM

Dr. S. F. Chandrashekar, Area Chairperson Person -HR, SSIM

Dr. S.V.Ramana Rao, Area Chairperson –Finance, SSIM

Prof. Muralidhar Rao, Area Chairperson – Marketing, SSIM.

ContentsTitle Page #

RESEARCH ARTICLES

Return and Volatility Analysis Of National Stock Exchange (NSE) Nifty Junior 5Companies

L.S. Sridhar & Punithavathy Pandian

Teacher Burnout: A Study of Teachers at Select Schools 14Meena Dorathi

Motivational Need Prioritization and Perceived Success—An Empirical Study 21Sobia Amreen

Human Resource Practices in ISO Certified Small & Medium Enterprises (SME) 29in Nagpur region

Rajiv B. Khaire

Social and Behavioural Impact of SBLP on Beneficiaries: 37A Study in Select Districts of Andhra Pradesh

A. Sudhakar and M.S Rama Devi

Retail Service Measurement: A Review of Research Literature 56K. Jayarama Reddy

CASE STUDY WITH TEACHING NOTESBlack Magic 67

Pavan Patel & K.V.S.Krishnamohan

BOOK REVIEWDiscover the Diamond in You 75

S.V.Ramanarao & K.V.S.Krishnamohan

Copyright: Siva Sivani Institute of Management, Secunderabad, India.

SuGyaan is a bi-annual publication of the Siva Sivani Institute of Management,

NH-7, Kompally, Secunderabad- 500 100.

All efforts are made to ensure correctness of the published information. However, Siva Sivani Institute ofmanagement is not responsible for any errors caused due to oversight or otherwise. The views expressedin this publication are purely personal judgments of the authors and do not reflect the views of SivaSivani Institute of Management. All efforts are made to ensure that published information is free fromcopyright violations. However, authors are personally responsible for any copyright violation.

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Editorial...

It gives me immense pleasure in presenting before you the Volume 4, Issue 2, of Sugyaan ManagementJournal of Siva Sivani Institute of Management. In its fourth year of existence SuGyaan has receiveda tremendous response from its readers and contributors. Our sincere gratitude to the readers,authors and reviewers for their support.

In our continuous effort to contribute to the cause of nation building by promoting quality researchthrough thought provoking ideas in the form of research papers, articles, case studies and bookreviews we, in the current issue of Sugyaan, have included six papers from different disciplines viz.,Marketing, Accounts, Finance, Human Resource, followed by a case study and a book review.

The first paper titled "Return and Volatility Analysis Of National Stock Exchange (NSE) Nifty JuniorCompanies by L.S. Sridhar & Punithavathy Pandianis a study of historical volatility measures likeGarman Klass Estimator, Parkinson Estimator, Rogers Satchell Estimator and Yang and ZhaneEstimator. The study found that risk associated with banking stocks was high, whereas the riskassociated with pharma and IT stocks was moderate.

The second paper titled " Teacher Burnout: A Study of Teachers at Select Schools", by Meena Dorathiisa study addressing the various issues of job burnout among select school teachers from PrivateSchools, NGO Support Schools and Government Schools. The study revealed that Private Schoolteachers reported more burn out experiences than the NGO Support Schools and GovernmentSchool teachers.

The third paper "Motivational Need Prioritization and Perceived Success-An Empirical Study", bySobia Amreen is a study on the motivational need priority among the youth and the study revealedthat the top two needs among the youth are self-actualization and autonomy. Especially in menautonomy needs dominate and in female self-actualization needs dominate.

The fourth research paper is "Human Resource Practices in ISO Certified Small & MediumEnterprises(SME) in Nagpur region", by Rajiv Bramhanand khaire. This paper concludes that ISO certifiedSME's in Nagpur region have implemented sophisiticated HR practices in their organisations.

The fifth paper is "Social and Behavioural Impact of SBLP on Beneficiaries:A Study in Select Districtsof Andhra Pradesh", by Dr A. Sudhakar & Dr. M.S Rama Devi. The study analyses the social factors(viz., General Awaeness, Exposure, Friendship, Helping Others, Mobility, Benefit from GovtProgrammes, Fight against Social Evils, Family Violence) and behavioural factors impact (BusinessAptitude, Business Skills, Banking Habits, Leadership, Self-Confidence, Decision Making, Children'sEducation, Motivation, Health, Nurtrition ) of SBLPs on the beneficiaries and their households inAndhra Pradesh. The study concluded that there is a significant behavioural change among the SBLPbeneficiaries.

The sixth paper "Retail Service Measurement: A Review of Research Literature", by K.Jayarama Reddyis a detailed study on the exisiting literature of Retail Service Quality Scales and through this, researchgaps are proposed in the study . Finally scope for further research also discussed in the article.

Next we have a case study on demand and supply of coal in India to thermal power plants andopprotunities explored by Indian companies like GVK, titled as " Black Magic", by Dr.Pavan Patel andMr.K.V.S Krishnamohan. This case address the crucial issues in international business area. Finallywe have a book review on "Discover the Diamond in You" by Dr.S.V.Ramanarao &Mr.K.V.S.Krishnamohan.

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1. INTRODUCTION

Volatility as a measure of risk is a matter of greatconcern for researchers and mutual funds and retailinvestors alike. Study an volatility in capital marketsoften raises issues related to public policies aboutthe stability of financial markets and the economyas a whole.

Investors in the market make their decisions basedon their perceptions of the distribution of futurestock returns; therefore, knowledge about futurevolatility has enormous influence on investmentbehavior. Forecasting stock volatility is also a keyaspect in determining pricing in the market.

Security analysis is built around the idea thatinvestors are concerned with two principalproperties inherent in securities- the return that canbe expected from holding a security, and the riskthat is associated with that particular security. Theprimary purpose of this studywas to focus on returnand risk and how they are measured.

Volatility, which is a measure of risk, was studiedthrough extreme value volatility estimators. Theextreme value volatility estimators take into accountthe highest and lowest prices observed during theday besides opening and closing prices. The studyconsidered 2005 to 2009,a period of four years whenNifty faced high volatility. We found that NIFTYhad reached the maximum of 6000 points andcollapsedby 2700 afterwards hence this period will

RETURN AND VOLATILITY ANALYSIS OF NATIONAL STOCKEXCHANGE (NSE) NIFTY JUNIOR COMPANIES

L.S.Sridhar* and Dr. Punithavathy Pandian**

Abstract

An attempt was made to study the return and risk element of investing in the shares of NSE Junior Niftycompanies. Since Nifty Junior comprises of 50 most liquid stocks after Standard& Poor’s(S&P) CNX Nifty,the return and risk associated with them are analysed. Data from 30 companies and various sectors werecollected for a period of five years 2005 to 2009. The volatility was analysed using extreme value volatilityestimators namely, Garman Klass estimator, the Parkinson estimator, the Rogers Satchell estimator and theYang and Zhang estimator. The studyfound that the risk associated with banking industry stocks is high,whereas the risk is moderate in pharmaceutical stocks and Information Technology (IT) stocks. It is essentialtherefore to understand the concepts of risk and returns to make a proper investment decision.

Key words: NSE Nifty Junior, risk and return, and volatility estimators

*Assistant Professor, Dept. of Management Studies, EASA College of Engineering and Technology, Navakkarai, Coimbatore 641105,sonnappansridhar@gmail.com, +919788348923 **Professor, Department of Commerce,Madurai Kamaraj University, PalkalaiNagar, Madurai – 625 021, Tamil nadu, India, panpuni@yahoo.co.in Phone: +919486928097

help to understand performance in bullish andbearish markets.

2. REVIEW OF LITERATURE

A study done by Sharpe (1964) of the single indexmodel shows that only one factor- market return issufficient to explain variations in returns of asecurity. Based on the single index model, Sharpe(1964), Lintner (1965) and Mossin (1966)independently developed what came to be knownas the Capital Asset Pricing Model. The studiesconducted by Brennan (1971), Black (1972), Famaand Macbeth (1973), Black, Jensen and Scholes(1972), Fama and French (1992, 1996) have focusedon some issues related to CAPM.

There are various classes of models and estimatorswhich have been proposed in the literature formeasuring volatility of asset returns. Models andestimators, assuming volatility to be constant, arethe oldest amongst the models used to estimate andforecast volatility,

Research in market liquidity behavior is gainingincreasing attention. Studies carried out by (Stoll,Amihud and Mendelson (1980), Ho and Stoll (1981,1983), Copeland and Galai (1983), Admati andPfleiderer (1988), and Foster and Vishwanathan(1990) show that both inventory explanation andinformation asymmetry explanation of spreads havepredicted a positive relationship between spreadsand volatility. Studies conducted by Tinic (1972),

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Stoll (1978), Menyah and Paudyal (1996) andStoll(2000) show that empirical evidence ofindividual stock illiquidity- volatility also providea positive relationship as expected. However,empirical evidence of the relation in the marketson an aggregate level is inconclusive. Chordia et al(2001) document a negative relation betweenaggregate volatility and illiquidity.

In addition to exploring the aggregate illiquidity-volatility relation, the factors that can influence therelation are explained clearly. Trading activity isone such factor that can influence volatility-liquidity relation. Barclay and Warner (1993), Joneset al. (1994), Huang and Masulis (2003) and Darratet al. (2003) show that trading activity co-varieswith volatility. In addition, trading activity is a well-known determinants of spreads.

3. DATA ANDMETHODOLOGY

The study was descriptive in nature. Data wascollected through secondary sources, the dailyclosing pricing of the companies and CNX NiftyJunior were taken from theNational StockExchange (NSE) official website. The daily pricedata from January 2005 to December 2009 werecollected to estimate the returns and volatility ofthe securities.

An attempt was made to study the return and riskelement of investing in the shares of NSE JuniorNifty companies. Since Nifty Junior comprises of50 most liquid stocks after S&P CNX Nifty, thereturn and risk associated with them were analyzed.Therefore 30 companies from various sectorsnamely banking, automobile, pharmaceutical,electronics, trading, refinery, distillery,construction, computer- software and financialinstitutions were chosen and data was collectedfrom 2005 to 2009. The volatility was analyzedusing extreme value volatility estimators namelythe Garman Klass estimator, the Parkinsonestimator, the Rogers Satchell estimator and theYang and Zhang estimator.

Various formulae were used:

1

1

−

−−=it

itits P

PPR

Rs = Security return for time t

Pit – closing price of security i for time t.

Pit-1 – closing price of security i for time t-1.

1

1

−

−−=it

ititM I

IIR

RM = Market Index return for time

Iit- closing value of market index corresponding tothe period of security I for time t

Iit-1 – closing value of market index correspondingto the period of security I for time t-1.

Extreme-Value Estimators

Parkinson (P) (1980), following Feller’s work(1951) on the distribution of the trading range of asecurity following Geometric Brownian Motion(GBM), was the first to propose an extreme-valuevolatility estimator for a security following driftless6

GBM, which is theoretically 5 times moreefficientcompared to traditional close-to-close estimator. Hisestimator (óp) is given by-

σ2P = 1/(4n ln 2)* Σ (ln Ht/ Lt)2

where,

Ht = Highest price observed on day t

Lt = Lowest price observed on day t

Extending his work, Garman and Klass (GK)(1980) constructed an extreme-value estimatorincorporating the opening and closing prices inaddition to the trading range, which istheoretically7.4 times more efficient than itstraditional counterpart. Their estimator (σGK) is

σ2GK = 1/n * Σ[0.511(ln Ht/ Lt)2 * - 0.019(ln (Ct/

Ot )*ln (Ht Lt/ Ot2) –

2 ln (Ht/ Ot)* ln –0.383(ln Ct/ Ot)2]

Where

Ot = Opening price of day t

Ct = Closingprice of day t

Both the Parkinson and Garman-Klass estimatorsdespite being theoretically efficient are based onassumption of driftless GBM process. Rogers andSatchell (RS)(1991) relaxed this assumption andproposed an estimator (σrs), which is

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σ2 (RS) =1/ n * Σ [ln (Ht/Ct) ln (Ht/Ot) + ln (Lt/Ct) ln (Lt/ Ot)]

Recently, Yang and Zhang (2000) proposed anestimator independent of drift, which also takes intoaccount an estimate of closed market variance. Theestimators proposed earlier, including the Rogers-Satchell estimator, do not take in to account closedmarket variance. This means that the prices at theopening of the market are implicitly consideredsame as that of the closing price on the previousday. The Yang-Zhiang estimator is based on the sumof estimated overnight variance and estimated openmarket variance. The estimated open-marketvariance in turn is based on weighted average sumof the open-market returns’ sample variance andthe Rogers-Satchell estimator with theweightschosen to minimize the variance of estimator. TheYang-Zhiang (YZ)estimator (σyz) is given by

σyz = Vo + kVc+(1-k)σ2 (RS)

2

10 1

1∑

=

−

⎟⎠

⎞⎜⎝

⎛ −−

=n

iii oo

nV

2

111∑

=

−

⎟⎠

⎞⎜⎝

⎛ −−

=n

iiiC CC

nV

11

34.1

34.0

−++

=

n

nk

The extreme-value estimators proposed in theliterature were usually derived under strongassumptions. As pointed out earlier, attempts havebeen made to relax the assumption of driftless priceprocess and closed market variance by Rogers andSatchell (1991), and Yang and Zhang (2000)respectively. Besides these, it is argued that theobserved extreme values may reflect certainliquidity-motivated trades (Li and Weinbaum 2000).This could make them less representative of “true”prices compared to the closing prices.Besidesextreme values being potentially less representativeof true prices, extreme values observed are inmarkets, where the trading is discrete, whereas,extreme-value estimators are derived underassumption of continuous trading. This can inducedownward “discrete trading” bias in extreme-valueestimators, as the observed highest prices are lowerthan the “true” highest price and the observedlowest price is higher than the “true” lowest priece(Roger and Satchell 1991, Li and Weibaum 2000)Rogers and Satchell (1991) addressed this issue byproposing adjustment in their extreme-valueestimator by taking into account the number of

steps (trades) explicitly.

4. OBJECTIVES OF THE STUDY

• To study the volatility of the chosen securityusing extreme value volatility estimators.

• To study the relationship between the returnsof the chosen security and the risk associatedwith them.

5. RESULTS AND DISCUSSION (Table 1)

Beta value was equal to 1 in case of companiesnamely Adani enterprise during the year 2007,Bharat Forge Ltd during 2006 and United Spirit Ltdduring 2005. Beta values for these companiesindicate that they had average market risk. Thestock was no more or less volatile than the market.Beta value was more than 1 in case of companiesnamely Adani enterprise during 2007, AshokLeyland during 2005- 2006, Bank of India duringall the years 2005, 2006, 2007, 2009 except 2008,Kotak Bank during 2007- 2008, Syndicate Bankduring 2005-2007, LIC Housing Finance during2007- 2008, IDBI Bank and IFCI during 2005-2009.Beta values for these companies indicate that thestocks were more volatile than the market and therisk associated with them was also high. Beta valueis less than 1 in most of the companies. Thisindicates that the stocks are relatively less volatilethan the market and the risk associated with themis also low.

Beta value was negative for Glaxo Smith Klinepharmaceuticals during 2009 and HindustanPetroleum Corporation during 2007- 2009. NegativeBeta value indicates that the stock return moves inthe opposite direction to market return.

GARMAN GLASS ESTIMATOR (Table 2)

The values of Garman Klass estimator is higher forstockof Aditya Birla during 2008- 2009, AdaniEnterprises, IDBI bank, Cummins India Ltd, LICHousing Finance, Kotak Bank, Corporation Bank,Crompton Greaves, and Ashok Leyland during2008. Most of the stocks had higher values in 2008compared to that of the rest of the years. Highervalues indicate higher volatility of the stock thanthat of the market.The values were highest forstocks namely IFCI and BFL software during 2008.These stocks had higher volatility in the market.The Garman Klass estimator values were lower for

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stocks namely Bank of India and MRPL. Thisindicates that these stocks had less volatility in themarket.

PARKINSON ESTIMATOR (Table 3)

The Parkinson estimator values are higher forstocks namely Aditya Birla, Kotak Bank, CromptonGreaves, Glen Mark Pharmaceuticals, Biocon Ltd,United Spirit, Ultratech Cements and IFCI during

2009. The estimator values are highest for stocksnamely Moser Baer India Ltd, IFCI and BFLsoftware during 2008. Most of the stocks had higherestimator values during 2008 compared to otheryears. Higher estimator values indicate highervolatility of the stocks. The Parkinson estimatorvalues are lower for Bank of India and CromptonGreaves stocks for 2009. Lower value indicates thatthey have lower volatility in the market.

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ROGERS SATCHEL ESTIMATOR (Table 4)

The Rogers Satchell estimator values were higherfor stocks Bank of India, Bank of Baroda, MRPL,Moser Baer India Ltd, Ultratech Cements and

United Phosphorus Limited during 2008. Highervalues indicate high volatility of stocks in themarket. The values are higher in the year 2005compared to rest of the years. The values are highest

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for the stocks namely Corporation Bank, BFLSoftware and BEL in 2005. The values wereconsecutively lower for Glaxo Smith Kline

pharmaceutical which shows that the stock had lessvolatility.

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YANG AND ZHANG ESTIMATOR (Table 5)

The Yang and Zhang estimator values are higherfor stocks namely Aditya Birla, Adani Enterprises,

Ultratech Cements, Corporation Bank, BharatElectronics Ltd and Crompton Greaves during 2008.During 2007- 08, Bank of Baroda was highly

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volatile, similarly in 2008-09 Bharat Forge stockswere highly volatile. This indicates that thevolatility of the stocks was high in the market. Theestimator values were highest for stocks namelyIDBI Bank and IFCI during 2008. Most stocks havehigher estimator values in 2008. A higher estimatorvalue indicates higher volatility of these stocks inthe market. Therefore the risk associated with themis also high. The estimator values are lower forstocks of Hindustan Petroleum Corporation in 2008and Dr. Reddy’s lab in 2005 and 2007.

CONCLUSION

A study was made in performance of some of theseextreme- value estimators in the context of IndianCapital Markets. Using the stock market index CNXNifty Junior and 30 constituent stocks, theannualized returns are estimated. This studyfocused on the possible usefulness of the extremevalue estimators for some of these applications.From this study, we found that the risk associatedwith the banking industry stocks was high, whereasthe risk was moderate in Pharmaceutical Stocks andInformation Technology (IT) stocks. Furtherresearch in this relation is needed to createconfidence among individual investors and helpserve as the basis for future regulatory decisions.

REFERENCES:

1. Admati, A and Pfleiderer, P. (1988). “ATheory of Intraday Patterns : Volume and PriceVariability”, Review of Financial Studies. 3-4

2. Barclay, M. J and Warner, J. B. (1993). “StealthTrading and Volatility: Which Trade MovePrices?” , Journal of Financial Economics. 281-305

3. Black, F., M. Jensen, and M. Scholes, 1972,“The Capital Asset Pricing Model: SomeEmpirical Findings,” Praeger, New York,pp.79-121.

4. Foster, F.D., and S. Viswanathan, 1995, “Can

Speculative Trading Explain the Volume-Volatility Relation?” , Journal of Business andEconomic Statistics, 13, 379-396.

5. Copeland, T and Galai, D. (1983),“Information Effects on the Bid- AskSpreads”,. Journal of Finance. 1457-69

6. Fama, E. F and French, K. R. (1992), “TheCross Section of Expected Stock Returns.”,Journal of Finance. 427- 465

7. Garman, M.B. and Klass, M. J. (1980). “TheEstimation of Security Price Volatilities fromHistorical Data”, Journal of Business. 67-78.

8. Manjunatha, T. (2009), “Risk Return Analysisof BSE Sensex Companies”, Indian Journal OfFinance. 21-27

9. Masulis, R and Huang, R. (2003), “TradingActivity and Stock Price Volatility”, Journal OfEmpirical Finance. 249-269

10. Pandey, A. (2002), “ Extreme Value VolatilityEstimators and their Empirical Performancein Indian Capital Markets”, NSE ResearchPapers.

11. Parkinson, M. (1980), “The Extreme ValueMethod for Estimating the Variance of the Rateof Return”, Journal of Business. 61-68.

12. Prabahar, R., Dhinakaran, J and Punithavathy,P. (2008), “Return and Risk Analysis of IndianInformation Technology Sectors”, The ICFAIJournal of Financial Risk Management. 41- 49

13. Rahul, K and Gupta, C.P. (2008), “A Re-examination of Factors Affecting Returns inIndian Stock Market”, Journal of EmergingFinancial Markets. 1-29

14. Rogers, L. C. G., Satchell, S. E and Yoon, Y.(1994), “Estimating the Volatility of StockPrices: AComparison of Methods that use Highand Low Prices”, Applied Financial Economics.241-247.

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Introduction

There is a shortage of 1.2 million teachers; 42million children aged between 6 and 14 do not goto school; roughly 16% of all villages do not haveprimary schooling facilities and 17% schools havejust one teacher in India today. (Shobhan Saxena,2010). On the other hand, the existing system isstill being questioned for the efficiency andeffectiveness of teachers on the rolls. Such a stateof affairs may be attributed to various anomalies inthe system,one such issue is related to themanagement of teacher stress and stress reactionson the part of educational administration. Givensuch concern, there is gross under-representationof research on the problem of stress and burnoutamong teachers all across the world. One of thedeleterious effects stress on the work lives of theprofessionals in human services is job burnout.

Interest in understanding dynamics of professionalburnout, as a stress reaction, has markedlyincreased in recent times in all service sectororganizations (Koustelios ,2001). Exceptionally, ithas received more attention in Schools since,burnout has been understood as a psychosomaticreaction manifested by those who are at the teachingend. Matheny, Gfroerer, and Harris (2000) notedthat earlier research into the phenomenon describedburnout as a loss of idealism and enthusiasm forwork among those who work in learningorganizations.

Teacher Burnout: A Study of Teachers at Select SchoolsMeena Dorathi*

Abstract

Burnout among teachers in schools today is affecting the quality of education provided to the students. Thereactions of such experience are in the form of psychosocial complaints, lowered job performance,organizationally relevant outcomes like absenteeism and turnover among the teachers. This study addressedthe issues of job burnout among school teachers. One hundred and twenty, randomly chosen, teachers fromthree Schools namely, Private, NGO supported and Government responded to a questionnaire on job burnout.Results reveal that Private School teachers reported more burnt out experiences than the NGO schools andGovernment School teachers. Interestingly GovernmentSchool teachers experience less in burnout than theircounterparts. The result is statistically significant. Implications are drawn for effective school administrationin helping teachers cope with burnout experiences.

*Faculty Member at Centre for Research and Development Concerns, 1-6-37/30/2/4, Old Alwal, Secunderabad, 5000010,meena.dorathy@gmail.com.

On one hand, occupational burnout has onlyrecently gained the attention of educationaladministrators and behavioural scientists. On theother, research on occupational burnout has takena systematic trend due to the continuousinterventions made by clinical psychologists,medical social workers and a large number of otherbehavioural scientists including educationaladministrators. First, burnout is treated as aramifying consequence of intense stressexperienced by the professionals in Schools (Leeand Ashforth, 1991). Secondly, burnout is treatedas a precondition to the symptoms of depression,gastrointestinal disorders, asthama, dermatitisetc. (Sastry, 1996). Thirdly, burned out individualstend to show unrealistic expectations or ambitions,feel apathy or anger and decline in their jobperformance.

What is Burnout? Before understanding themeaning of burnout, it is important to trace thehistory of the coinage of the term. According toSenior (2006), burnout was first introduced withGreene’s novel, A Burn-Out Case, in 1961. Later,in the 1970s, Herbert Freudenberger (as cited inSenior) used it to denote a common social problemfound with workers. Since the term was first coined,Gold (2001) observed that many differentdefinitions have developed, with all having the maincomponent of fatigue.

Burnout, as defined by Maslach et al. (2001), is athree dimensional syndrome consisting of

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emotional exhaustion, depersonalization, andreduced personal achievement that results fromchronic stress in interpersonal relationships. It isphysical, emotional and mental exhaustion causedby long term involvement in stressful andemotionally demanding situations, combined withhigh personal expectations from one’sperformance (Leatz and Stolar, 1993). Thisconceptualization further substantiates the causalrelationship between job stress and burnoutexperiences of service professionals.

One of the early studies on burnout amongteachers by (Schaufeli et al., 1996) reveals thattheir experiences of burnout are mainly due to workarrangements that demand their working instanding position, with increased loads of studentsand their individualized progress evaluations,preparation of reports, unnecessary rules, dealingwith large pool of students and parents and timeconsciousness in maintaining the progress reportsof the students. Thus, there is a need to study theburnout experience of teachers across differentSchools with different ownership Howard andJohnson (2004). This study is a part of larger studyundertaken by the author in order to understandthe dynamics of stress and burnout experiencedby Teaching personnel in schools inGreaterHyderabad.

What are the dimensions of burnout? Researchshows there are three major areas that arepredominant in burnout experienced by amongprofessionals. These areas are personalaccomplishment (Jackson, et.al, 1986), emotionalexhaustion (Lee and Ashforth, 1991), anddepersonalization (Barker, 1991).

Emotional Exhaustion includes physical andmental exhaustion. It is characterized by fatigue,changes in eating and sleeping habits andgenerally lowered energy on one hand andfrustration, hopelessness, being trapped,depression, sadness, and apathy on the other(Jackson, et.al,1986). As an individual begins toexperience exhaustion, in an instinctive reactionto cope with the overload, she or he may begin todistance herself or himself emotionally from othersand from her or his own work.

Depersonalization a second symptom ofprofessional burnout is characterized by a teacher

distancing himself or herself emotionally fromothers and from his or her own work. It is frequentlyseen in human service professionals because theyhave to be aware of and responsive to the servicerecipients. Schaufeli, Maslach, and Marek (1996)found that 10% of those in the social serviceprofession burned out between 1 -5 years on thejob.

It is a feeling of being in an unreal situation, asense that one’s self or body is detached from theimmediate work environment (Chandrasekhar,1996). A person with this, exhibits cynical ornegative attitudes towards self and others, such asbeing rude to students and parents, beingunsympathetic or disrespectful to the studentcommunity, and experiences low self-esteem(Jackson, et.al,1986).

Personal accomplishments of professionalsexperience burnout consistently shows decline inwork productivity, commitment to work anddetachment from or over involvement on the job(Jackson, et.al, 1986). Maslach et.al (2001) viewedthis aspect as the last reaction. Some workconditions with persistent unrealistic demands leadto exhaustion and cynicism and may also reducethe efficacy of the worker. Quite likely the teachingjobs are much demanding. For instance, when someteacher does not turn up, the existing teachers areasked to share the additional loads.

Though the term burnout refers to a stress-relatedsyndrome, it is not synonymous with stress (Gold,2001). Burnout is caused by stress, but it has theadded dimension of not having an outlet for thestress. Schwab (1983) found that individuals aremore likely to show signs of burnout if they workin situations that call for intense, prolonged, andconstant interactions with others. Gold assertedthat there are various reasons why teachers willsuccumb to the symptoms of burnout, includingescalating violence in schools, lack of support fromthe community, social and situational job stresses,role conflicts and ambiguity, paperwork pressures,and one’s personality characteristics. In recenttimes, there is a spurt of growth in private schoolsthat operate on competitive framework for survival.In the process, there are extreme demands imposedon teachers for the delivery of uncompromisedquality of services to the student community.

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Besides, these schools also work towards claimingand reclaiming they are top notches in producingtoppers in the region. As a result, teachers arestressed out in such schools. On the contrary, inGovernment schools, such demands are notimposed on the teachers since, they do not competewith any school and their mission is only to enrollchildren and educate them.

Joanne (2009) states that public school teachersburn out because of poor working conditions. Whencompared, public school teachers have lower jobsatisfaction, less autonomy, less influence overschool policy, less ability to keep order, less supportfrom administrators and peers, and less safety.Administrators don’t provide as much support orleadership as in private schools, according toteachers. The sense of community is weaker. Privateschools can get away with paying less money toteachers because the working conditions are better.

Besides, various factors such as job characteristics(e.g., work overload, time pressure), occupationalcharacteristics (e.g., various types of work),organizational characteristics (role ambiguity, roleconflict), background characteristics (e.g., age,gender), personality characteristics (e.g., locus ofcontrol, self-esteem) have been studied in relationto both concepts (e.g., Byrne, 1994; Dinham andScott, 2000; Koustelios, 2001; Maslach et al.2001).

Lastly, Tsigilis et.al (2006) found in a comparativestudy that satisfaction from the nature of thejob and working conditions contributed to theprediction of public sector early educators’emotional exhaustion, whereas satisfaction fromthe nature of the job and immediate supervisorsignificantly associated with private sector earlyeducators’ emotional exhaustion.

Thus, this study has two fold purposes, Firstly; itintends to assess burnout experienced among schoolteachers. Secondly, it estimates burnout experiencesin teachers as the class-load increases. In view ofthese, the following hypotheses have beenformulated.

1. There is no significant variation in job burnoutexperiences among teachers according to thetype of school to which they belong.

2. Increase in the number of students in a classdo not effect on burnout experiences amongthe teachers.

Material and Methods

With the help of a descriptive research design, 120teachers- 40 eachfrom Private Schools, NGOSupported Schools, Government Schools arechosen,employing a stratified disproportionaterandom sampling technique. They wereadministered a structured questionnaire. Thisquestionnaire containedtwo parts. Part A elicitedresponses regarding demographic data, Part Bincluded a scale devised by Maslach & Jackson(1981) for measuring three dimensions ofburnout namely, sense of accomplishment (8-items), emotional exhaustion (9-items) anddepersonalization (5-items). Wherever necessary,in the scale items the word ‘client’ is replaced withthe word ‘students’. All the items were measuredwith the help of five-point scale (where 1=neverand 5=every day).

Profile of the teachers

The profile of the teachers included their age,education, years of experience, monthly income andso on. Results relating to their profile are presentedin table 1. The average age of the teachers in publicis 34 years, followed by 26 years in case of privateschool teachers and 23 years in case of NGO schools.Majority of them are graduates irrespective of typeof schools. On an average, the public school teachersexperience is 12 years, followed by 5 years in caseof private school teachers and 3 years in case ofNGO founded school teachers. The averagemonthly income of the public teachers is Rs.35000per month, followed by Rs.12000 per month andRs.8000 per month in case of private schools andNGO school teachers respectively, the average classsize is 70 in case of public schools, 60 in case ofprivate schools and 25 in case of NGO schools.

Table 1 : Teachers Profile

Sno Variable Public Private NGO1 Age 34 26 232 Education 75% 63% 55%

Graduate Graduate Graduate3 Years of

Experience 12 5 3

4 Monthly Income 35000 12000 8000

5 Class Size 70 60 25

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Results

Results are presented according to the testing ofhypothesis as stated earlier in this paper. Firstly, itwas hypothesized that “there is no significantvariation in burnout experiences among teachersaccording to the type of school to which they belong”.Results in regard to this hypothesis testing arepresented in table 2. Secondly, in order to test thehypothesis, “Increase in the number of students ina class do not effect on experience burnout of amongthe teachers”. Results in this regard are presentedin table 3.

A perusal of table 1 reveals that mean scores onburnout experiences reported by teachers arecomputed according to the type of School theyrepresent. With regard to sense ofaccomplishment, the teachers at private schoolsscored higher mean scores (mean=20.50) thantheir counterparts in NGO School. Interestingly,such difference in their sense of accomplishmentis statistically significant which is evident from theF-value. The reason is probably because teachersat private schools teach more to students than thosein other Schools. In other words, their sense ofaccomplishment is very high because they see largepool of students coming to their School than to thoseat government or NGO School.

As far as emotional exhaustion is concerned,teachers at NGO School scored very high meanscore of 26.40, followed by teachers at PrivateSchools (mean=24.20) and teachers atGovernment Schools (mean=23.10). Interestingly,such difference in their emotional exhaustion isstatistically significant. This may be due to the

reason that NGOSchool teachers are expected bytheir management to deliver more quality servicesto the students. This calls for their totalpsychological and physical involvement. Further,most of the students at NGO Schools are toodemanding.

Interestingly, it is observed that all the teachershave scored almost identical mean scores (thoughslight variations are found) on depersonalizationscale irrespective of the Schools they work for.However, such variations in depersonalizationexperiences are not statistically significant. Thissuggests that depersonalization, as a dimension ofburnout, is a global experience of all the teachersacross the three typesof schools.

Lastly, with regard to total burnout experiences, itis found that teachers at Private Schools scoredhigher mean score of 44.70, followed by teachersat NGO Schools (mean=43.95). This may probablybecause teachers in Private Schools attend to a largenumber of responsibilities which involve satisfyingthe students, parents and the administrators.Interestingly, the teachers at Government Schoolscored low on burnout experiences with a meanscore of 40.10. F-value reveals that such differencesin their burnout experiences are statisticallysignificant which is evident in the Table1.

Thus, the null hypothesis standards rejected. Inother words, the degree of burnout among teachersalways varies according to the type of school. Morespecifically, the job demands for teachers in privateschools are very high when related to others. As aresult of which they experience burn out more thanothers.

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Work Load and Burnout Experiences

It was hypothesized that “ increase in number ofstudents will not affect job burnout amongteachers”. In order to test this hypothesis, the actualnumber of students a teacher handles, subject-wise,for all purposes is treated as an independent variableand the burnout experience’s treated as dependentvariable. Further, simple regression analysis wascarried out in order to test the hypothesis.

As is evident from table 2, that the number ofstudents teachers supervise yielded significantrelations with all the dimensions of burnout namelypersonal accomplishment (â=-0.323, p<.00), anddepersonalization (â=-0.248, p<.01) exceptemotional exhaustion (â=-0.046, p<.07). Thus thenull hypothesis has received less support since onlyon one dimension the effects were insignificant.Further, when there is an increase in existingnumber of students by one more student every time,the personal accomplishments of the teachers willreduce by 0.32 units and increase by 0.24 units ofdepersonalization very significantly.

Discussion

School teachers at elementary school level play avery important role in the development ofchildren’s’ overall personality. What is learned andexperienced during the early years can shapechildren’s views of themselves and the world, andlater influence, success or failure in school workand their personal lives. Therefore, the teachersaddressing at this level need to be encouraged tofocus more on personality development issues on aone to one basis since, large number of studentsmay not getindividual attention if numbers arelarge.

Having spent seven to eight years of service,teachers specializing in ‘early school education’continue to work in nursery, and primary schools.Subsequently, they decide to work in junior andmiddle schools in their later years. By and large,

the primary teachers are instructed to teach everysubject in the curriculum. Besides, they helpchildren develop use of language, numbers andexplore mathematical problems. They introduce thechildren to science and technology, history andgeography and creativity. More audiovisual aids areused to impart creative learning in these childrenwhich includes class room instructions and thehomework. Besides classroom activities, they alsoplan lessons, prepare tests, grade papers, preparereport cards, meet with parents, attend meetingsand conferences, and supervise extracurricularactivities after school.

Secondary School teachers, specialize in one ortwo subjects but commonly teach students of allage groups. The students are prepared for the boardexams while emphasis is on imparting subjectknowledge intensively. They also play a veryimportant role in developing the students’personality. Secondary and senior secondarystudents are involved in curricular and sportsactivities in school and teachers organize andsupervise all such activities. Senior secondary andsecondary school teachers prepare test papers, meetparents, attend conferences, faculty meetings andsuggest curriculum changes also.

Implications

In their multi-dimensional nature ofresponsibilities, education administrators should beconcerned about the teachers and their well-beingin as much as they are concerned about thestudents’. In the light of the results reported inthis paper, it suggested that while employingthe teachers administrators should carefullyidentify those skilled, committed, tolerant &helpful in all their relationships with the studentscommunity and then deploy them. Whereas, forteachers who are low on such qualities, continuouseducation and training programmes should beinitiated with the objective of inculcating suchqualities.

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On the other hand, it is suggested that work re-design is one of the possible solutions to thecontainment of burnout experiences. A good worksystem design meets the needs of teachers whilemeeting goals of the School. Further, it also meetssuch needs as self-esteem, building competence,autonomy and fostering self-accomplishment. Italso provides intrinsic and extrinsic rewards whileproviding support and encouragement as barriersagainst the ill-effects of burnout. Albee (2000), oneof the pioneers of prevention research, points outthat, “It is accepted public health doctrine that nodisease or disorder has ever been treated out ofexistence” (p. 847). It is far better if the roots ofteacher burnout are identified and eliminated beforethe syndrome develops, rather than treating it afterit has already occurred. Across the various medicalprofessions, a distinction has been made betweenthree levels of preventive interventions: (a) Primaryprevention, where the goal is to reduce the incidenceof new cases of a disorder, (b) secondary prevention,where the goal is early identification and treatmentof symptoms before they turn into a full-blowndisorder, and (c) tertiary prevention, where personswho have recently suffered a disorder receive sometype of intervention to prevent relapse (Conyne,1991). Such preventative interventions may eitherbe done at the organizational level, with changesin the school environment, or at the individual level,in which the goal is to strengthen teachers’resources in resisting stress.

Conclusion

The present study addressed to the problem ofoccupational burnout among teachers at threedifferent Schools. It was found that except fordepersonalization, all the other experiences likesense of accomplishment, emotional exhaustionand total burnout were significantly differentamong teachers across the Schools selected.Maslach et al. (2001) reported that teachershave the highest level of emotional exhaustion,whereas the other two components are close toaverage. One of which is depersonalization. Burned-out educators are unable to deal successfullywith the overwhelming emotional stress ofteaching. Implications are drawn for Educationadministrators.

Burnout results from the chronic perception that

one is unable to cope with daily life demands. Giventhat teachers must face a classroom full of studentsevery day, negotiate potentially stressfulinteractions with parents, administrators,counselors, and other teachers, contend withrelatively low pay and shrinking school budgets,and ensure students meet increasingly strictstandards of accountability, many experience a formof burnout at some point in their careers. Efforts atprimary prevention, in which teachers’ jobs aremodified to give them more control over theirenvironment and more resources for coping withthe demands of being an educator, are preferableover secondary or tertiary interventions that occurafter burnout symptoms have surfaced. However,research reviewed here indicates each type ofprevention can be useful in helping teacherscontend with an occupation that puts them at riskfor burnout.

References

1. Barker, R. The Social Work Dictionary,National Association of Social Workers,Washington D.C:27, 1991.

2. Byrne BM (1994). Burnout: Testing for thevalidity, replication, and invariance of causalstructure across elementary, intermediate andsecondary teachers. American EducationalResearch Journal, 31,3, 645-673.

3. Dinham S, Scott C (2000). Moving into thethird outer domain of teacher satisfaction.Jounal of Education Adminstration, 38,4. 379-396.

4. Gold, Y. (2001). Burnout: A major problem forthe teaching profession. Education 104(3),271-74.

5. Jackson, et.al. (1981). Toward anunderstanding of the Burnout Phenomenon,Journal of Applied Psychology, 71(4):630-40,1986.

6. Joanne (2009). Why public school teachersburn out?, http://www.joannejacobs.com/2009/06/why-public-school-teachers-burn-out/).

7. Koustelios A (2001). Personal characteristicsand job satisfaction of Greek teachers. TheInt. J. Educ. Manage 15(7): 354-358.

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8. Leatz and Stolar. when Work Gets to be toomuch. World Executive Digest, Nov.:90-91,1993.

9. Lee,T.R and Ashforth,E.B. Work-unitstructure and Processes and Job-relatedStressors as Predictors of Managerial Burnout.Journal of Applied Social Psychology,21,22:1891-97,1991.

10. Maslach, C. (2001). What have we learnedabout burnout and health? Psychology andHealth, 16, 607-611.

11. Maslach,C and Jackson,S.E. TheMeasurement of Experienced Burnout,Journal of Occupational Behaviour, 2:99-113,1981.

12. Maslach C, Schaufeli WB, Leiter MP (2001).Job burnout. Annual Review of Psycholgy, 52,397-422.

13. Sastry, R.A. Burnout of Professionals. NIMSNews. 1.7:1996.

14. Schaufeli, W., Maslach, C., & Marek, T. (1996).Professional burnout: Recent developments intheory and research. Washington, DC: Taylor& Francis.

15. Senior, J. (2006, November 26). Can’t get nosatisfaction. New York Magazine.

16. Shobhan Saxena, (2010) Missing teachers areIndia’s weakest link - The Times of India,TNN, Sep 5.

17. Shubin,S. Burnout : The Professional Hazardyou face in Nursing, Nursing, 78,8(7):22-27,1978.

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Introduction

One cannot ignore motivation, because motivationleads to success (Martens, Rainer:1970) .Motivation is a psychological feature that arousesan organism to action toward a desired goal andelicits, controls, and sustains certain goal directedbehaviour. Motivation results from the interactionsamong conscious and unconscious factors such asthe (1) intensity of desire or need, (2) incentive orreward, and (3) expectations of the individual andof his or her significant others. What motivatespeople is a matter of interest. Several theories wereoffered to explain motivation. Of all so far, AbrahamMaslow’s need hierarchy theory stays widelyconsented. He has arranged the needs into fivelevels viz., physiological, safety, social, esteem andself-actualization (Maslow, 1943). This theory haswide applications in management and other alliedsocial sciences. Grounded in this theory, the currentpaper tries to identify the prioritized needs amongthe younger generation.

The word success has many meanings toindividuals. Each one gives different meaningsbased on their background. Therefore, the conceptperceived success is employed for the purpose ofanalysis.Oxford Dictionary of Sports Science &Medicine considers perceived success as performer’sown assessment of whether he or she has achieved.One needs motivation to succeed. Motivation helpsone to start, going, maintaining interest andexceling in their endeavours.

*Freelance researcher can be contacted at soby.ams@gmail.com

Motivational Need Prioritization and Perceived Success—An Empirical Study

*Sobia Amreen

Abstract

Several studies on motivation have failed to convincingly end the debate; what motivates a person andmotivational need leads to success therefore remains a matter of interest. The current empirical study isbased on a sample of 193 participants who have attended soft skill training programme conducted inHyderabad.The study is based on the questionnaire an adapted version of L W Porter (1964).1The studyrevealed that the top two needs of youth are (i) Self-actualization and (ii) Autonomy. It is observed thatamong male respondents autonomy needs dominate, whereas among female respondents self-actualizationneeds dominate. The study reveals that to a large extent geographical profile like rural, urban, semi-urban,city and metro influences motivation. Further, it was also found that there is a statistically significantassociation between the need for autonomy and perceived success.

Key Words : Social needs, Esteem needs, Autonomy, Self-actualization, Perceived Success

Literature on Motivation

Although scientific interest in work motivationdates back to Adam Smith—who, in his “Wealth ofNations”, examined the causes of the improvementin the productive powers of labour—Macarov(1976) observed that the appearance of Maslow’stheory of a hierarchy of human needs offered auseful framework and explanation for many studieson work incentives later. Maslow postulated a seriesof pre-potent needs, each of which assumed potencyas the previous need was relatively satisfied. Withphysiological needs as the most fundamental, ororiginally most potent, self-actualization wasdescribed as the final, or highest, need.

Nevis, Edwin C (1983) analyzed culturalassumptions underlying Chinese managementpractices in order to construct a Chinese hierarchyof needs. This analysis compares Maslow’shierarchy of needs as applied to the US with theChinese hierarchy. Outcomes of the CulturalRevolution in China included an emphasis on thegroup rather than the individual, an emphasis onshared outcomes—regardless of performance, andan emphasis on farming rather than manufacturing.Thus, an important cultural concept underlyingChinese management practices is that being a goodmember of society and putting group goals beforeindividual needs should govern all practices. Incontrast to the group-oriented, central controlassumptions about China, American culture havedeveloped out of assumptions stressing

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individualism and a limited state. While Maslow’shierarchy of needs, from an American perspective,puts self-actualization at the top, followed by self-esteem, belonging (social), safety, and physiology,a Chinese hierarchy puts self-actualization in theservice of society at the top, followed by safety,physiology, and belonging. Data from surveys ofChinese workers and graduate students supportsuch a model. The application of a hierarchy-of-needs model to other cultures is outlined. Contenttheories such as Maslow’s hierarchy of needs andHerzberg’s two factor theory or process theoriessuch as expectancy theory and reinforcement theoryare practiced in most American companies.

Chris Harris, Brian H. Kleiner, (1993) observed thatthe key difference between the best managedcompanies and other companies is their method ofimplementation in particular environment. Blackand Decker, Lincoln Electric, Honeywell, Walmart,Dupont and Phillip Van Heusen are seven ofAmerica’s best managed companies which usecreativity and innovation to motivate employees.

Hsin-You Chuo, John L. Heywood (2006) examinedempirically the ageing and experiential variationsof the theme park visitors’ motivations. Usingstratified and systematic sampling techniques,survey data were collected from visitors to fourleading theme parks in Taiwan – an Asian islandnation. Limited support for the ageing variation wasfound and its changing pattern was also recognized.Motivation preferences can be characterized byexistence needs, relatedness needs and growthneeds. A study conducted by Lianke Song, YongguiWang, Jiangru Wei, (2007) based on a sample ofemployees from ten organizations in JiangsuProvince, Eastern China indicated that motivationpreferences were strongly related to needs withwhich individuals desires are satisfied. There weresignificant differences in motivation preferencesamong groups that were categorized by gender orpersonality. It was also found that Chinese cultureinfluenced motivation preferences. Florence OluOgunrin, Olubunmi Ogunrin, Adebayo Akerele,(2007) examined perceptions of need dissatisfactionand need importance in the two groups of orthodoxmedical doctors in Nigeria, relating thesemotivational variables to quality in-patient care.The study is based on a survey conducted on a 33

government-employed doctors, and 29 privatepractitioners. The authors found that the twogroups differed significantly in perceptions of needdissatisfaction, and in the importance attached to“opportunity to belong to social groups” and pay.When absolute values are considered, the overallpicture suggests that the two groups are mostdissatisfied with pay, physiological, security, self-actualization, and transcendence needs.

Irma Tikkanen, (2007) explored the sectors of foodtourism in Finland by using Maslow’s hierarchy ofneeds in the classification. Hitherto research onfood tourism concentrated on the role of food as anattraction, as a cultural phenomenon, and as anexperience. Irma Tikkanen linked food tourism andmotivations to Maslow’s hierarchy of needs RuthAlas, (2008) conducted a study regarding employeevalues and work-related attitudes in Chinesemanufacturing companies in comparison withvalues and attitudes in Japan, South Korea andHong Kong. The results of an empirical study inAsian manufacturing companies indicatesignificant differences, as well as similarities, amongvalues at the societal level and job-related attitudesin China, Japan, South Korea and Hong Kong. It isargued that the differences in work-related attitudesare influenced by the respective societies’ historicallegacy, and in particular differences in institutionaldevelopment. Robert Urwiler, Mark N. Frolick(2008) presented a hierarchy of progressive ITmaturity using Maslow’s Hierarchy of Needs as ametaphor for articulating the increasing value thatcan be derived by the application of InformationTechnology within competitive organizations. Theauthors refer to this maturity model as the IT ValueHierarchy. Each level of the IT Value Hierarchy isdescribed using examples and comparisons toMaslow’s Hierarchy. The model can be used by ITexecutives as a framework for better explaining anddiscussing the value of increasingly sophisticatedInformation Technology use within the enterprise.Rarely Maslow’s hierarchy of needs is used inresearch when analyzing pupils’ needs, wants, andmotivations related to food. To fill that gap IrmaTikkanen, (2009) introduced the pupils’suggestions for developing school meals in Finlandfrom the viewpoint of Maslow’s hierarchy. Mostof the suggestions are related to physiological needs;

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i.e. main course, salad, milk and bread. Also otherneeds, such as safety needs, social needs, esteemneeds, and self-actualization needs receivesuggestions. The practical implications are that thepupils have all the five levels of needs related toschool meals which have to be taken intoconsideration when developing school meals withinthe curriculum.

Songshan (Sam) Huang, Cathy H.C. Hsu, (2009)paper offered an invaluable practical interpretationof travel motivation and related management issues.People have unconscious motives which affect theirdecision-making and associated behavior. Xuan VanTran, Arch G. Woodside (2009), in their paperattempted using Thematic Apperception Test(TAT) to measure how unconscious motivesinfluence travelers interpretations and preferencestoward alternative tours and hotels. Using the TAT,the present study explores the relationships betweenthree unconscious needs (1) achievement, (2)affiliation, and (3) power and preferences for fourpackage tours (adventure, culture, business, andescape tours) and for seven hotel identities (quality,familiarity, location, price, friendliness, food andbeverage, and cleanliness and aesthetics). The studyemployed canonical correlation analyses to examinethe relationships between unconscious needs andpreferences for package tours and hotel identitiesusing data from 467 university students. The studyscores 2,438 stories according to the TAT manualto identify unconscious needs. The findings indicatethat (1) people with a high need for affiliation preferan experience based on cultural values and hotelsthat are conveniently located, (2) individuals witha high need for power indicate a preference for highprices and good value for their money, and (3)people with a high need for achievement prefer atravel experience with adventure as a motivation.

Jan Selmer, Romie Littrell, (2010) investigatedchanges in the relative importance to individualsof particular work values during the deteriorationof external economic conditions in Hong Kong. Theauthors also evaluated the need hierarchies such asMaslow’s in minimally adjusted for a Chinesecultural context for a theoretical framework forassessing the shifting importance of work valuesresulting from changing local economic conditions.

The study found statistically significant changesin the differing importance to individuals ofparticular work values during the deterioration ofexternal economic conditions. The authors arguethat the needs hierarchy theories provide anappropriate framework for the shifting importanceof work values resulting from local economicconditions.

Fang Yang, (2011) to investigated employees’ workmotivation in China-Ningbo. It was found that allthe 15 motivation factors listed in the questionnaire,including good pay, promotion, desirable workenvironment, good welfare package, good bonussystem, good company policy, good interpersonalrelationships, good supervisors, job security, theopportunity to use my ability, a sense of challengeand achievement, positive recognition, autonomy,self-actualization and interesting job, do motivateemployees in China; good pay is the most importantmotivator for employees in China; employees’ workmotivation is affected by their personalcharacteristics.

In their exploratory study Stuart J. Barnes, AndrewD. Pressey, (2011) attempted to understand thefactors that drive individuals’ higher-order humanneeds in a relatively new electronic marketingcontext, that of virtual worlds. The study employedthe higher-order needs from Abraham Maslow’shierarchy (i.e. belonging, esteem and self-actualization) and a series of drivers related to thecharacteristics of the virtual world medium,personality characteristics, channel interaction, anddemographic criteria. The authors identifiedArousal, pleasure, and individualism act asparticularly potent drivers of higher-order needs invirtual world channels, while channel intensity,affinity for technology and gender act as lesserdrivers. Gender differences in self-actualizationamong a sample of Black university students wasassessed by Allan Okech, Crystal Renée Chambers(2012) using the Short Index of Self-Actualization.The eta square index indicated that a mediumamount of the variance of the self-actualizationvariable in Black university students was accountedfor by gender. Specifically, Black female universitystudents reported more self-actualization than Blackmales.

Herman Aguinis, Mahfooz A. Ansari, Sharmila

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Jayasingam, Rehana Aafaqi, (2008) study indicatedthat successful entrepreneurs perceived success isgreater referent, information, expert, connection,and reward power; less coercive power; and similarlegitimate power than unsuccessful entrepreneurs.Faye K. Cocchiara, Eileen Kwesiga, Myrtle P. Bell,Yehuda Baruch, (2010 in their study found thatmen and women graduates perceived their post-graduate degree success differently, with womengraduates reporting less salary gain but higherhierarchical levels and job satisfaction compared tomen. Social capital and perceived discriminationindirectly affected the reported career success ofgraduates on the hierarchical level salary gain.

Thus the above studies have concentrated on needmotivation, perceived success and how it varies indifferent cultures, profession and how to make usein different fields like tourism. The present paperintends to concentrate on needs priority and theassociation between different needs and self-perceived success.

Objectives of the Study

• To study the motivational need priority amongthe respondents.

• To examine whether gender of the respondentsand the place from where the respondentshails, and the priorities of needs are related.

• Further, it is intended to see the associationbetween need priority given by therespondents and their perceived success.

Methodology

It is an empirical study based on primary datacollected from a sample of 193 respondents withthe help of a structured questionnaire. Therespondents are from different parts of India. Thequestionnaire is an adapted version of L W Porter(1964). It has two parts; the first part has 13questions which deal with security, social needs,esteem needs, autonomy and self-actualizationwhich resembles Maslow‘s hierarchy to someextent. This is measured on a 7 point scale one beingthe lowest and seven is the highest. The wordsuccess has different meanings to different people.Therefore, the respondents were asked to considersuccess in their own terms and were asked howthey consider themselves in terms of not successful,

somewhat successful and successful. The responseswere examined in relation to motivational needsidentified in the study. The second part containsthe profile of the respondents which soughtinformation pertaining to age, gender andgeographic area from where the respondents arebrought up. For the purpose of the study, meanscores are calculated and to know the associationbetween motivation and success chi-square tests areused.

The profile of the respondents: The profile ofthe respondents helps to have a broader and a littleclearer understanding of the responses given bythem. There certain important aspects of the profilenamely age, gender and the geographic area of therespondents are presented.

Table 1 Demographic Profile of Participants

1 AgeMaximum 28Minimum 20Mean 22.62S.D 1.67

N=193 Percentage2 Gender

Male 116 60.1Female 077 39.9

3 GeographicRural 31 16.1Semi-urban 15 7.8Urban 18 9.3City 96 49.7Metro 33 17.1

Age- wise classification presented in Table 1indicates that all of them belong to the younger agegroup of 20 to 28 years. ‘The mean age of therespondents is 23 years with a standard deviationof 1.67. The responses mainly reflect themotivational needs of the younger generation.Gender wise classification shows that out of the193 respondents, a large majority of themconstituting 60.1 percent are male and theremaining 39.9 percent are females. From thegeographic profile of the respondent, it is observedthat a large percent (49.7percent) hail from the City,17.1 percent respondents are from Metro. The

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respondents coming from Semi urban and urbanregion are approximately 8 and 9 percent. Therespondents hailing from rural area are 16.1percent. The composition of the sample showssufficient attention is paid to have diverse groups.

Results and Discussion

An attempt has been made to examine themotivational need prioritization, whether theychange based on the gender of the respondents,from the place where they are brought up, which istermed as geographic profile, and lastly whetherthere is any association between variousmotivational needs and perceived success of therespondents.

The above table shows the importance attached todifferent motivational needs. The mean scoresindicated that the Self-actualization (5.9637) needis dominating among the respondents. This isfollowed by the need for Autonomy. There is a slightvariation among lower order needs. It may beinferred that the respondents are motivated by thehigher order needs like self actualization and needfor autonomy.

Table 3 gives the needs which propel them to workbased on the gender of the respondents. For thepurpose of analysis the mean scores are categorizedinto Low and High. Low indicates that the mean

scores of below the average mean score in thatcategory and high indicate above the average meanscore in that category. It may be observed thatamong men except in the category of security andesteem needs in all the other categories the majorityof them reported that social needs, autonomy andactualization needs motivate them. Surprisingly, itis observed that the majority of the femalerespondents is high in all the categories of needs.Further, among male respondents, autonomy needsare dominating as reported by 62.1 percent of therespondents, whereas among female respondentsself-actualization needs are dominating (59.7 percent). Further, an attempt has been made toexamine whether there is any significant associationbetween gender and motivational needs. The chi-square test indicates that the association betweengender and motivational needs is not significant.(Table 4)

An examination has been made to see whether thegeographical profile of the respondents influencestheir motivation. It is observed that there is a mixedresponse. Autonomy and social needs aredominating among the respondents coming fromrural areas. Semi-urbans are dominated by Self-actualization. Urbanites are propelled by securityand esteem needs. Respondents from cities arepredominantly motivated by social and self-

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actualization needs. Most of the metros indicatedSelf-actualization as their motivator. Thus, it maybe inferred that to a large extent geographical profileinfluences motivation, because of the socialbackground that exists in those areas. Further, anattempt has been made to examine whether thereis any significant association between thegeographic profile of the respondents andmotivational needs. The Chi-square results indicatethat there is a significant association between thegeographic profile of the respondents and self-actualization needs only. In the case of other needsbased on the geographical profile the association isnot significant. (Table 5)

A close examination between the self-perceivedsuccess and the motivation needs of the respondentsgives results that call for attention. It may beobserved that those who rated themselves assuccessful have high needs for autonomy (70.6 percent). Another interesting feature is that themajority of them has indicated high scores in allcategories. In the case of those who have perceivedthemselves as somewhat successful are high on self-actualization (62.1 per cent). This is followed bysocial needs and autonomy needs. Further, it maybe observed that a vast majority of respondentsthose who considered themselves not successful,have reportedly low mean scores in all thecategories, except social needs. Thus, a significantvariation is found among those who are not

successful, somewhat successful and successful asfar as their motivational needs are concerned. Theresults of chi-square indicate that there is astatistically significant association betweenautonomy and perceived success.

Discussion

The Study indicated that Self-actualization needdominate among the respondents. Among malerespondents, autonomy needs are dominate,whereas among female respondents self-actualization needs are dominate. The chi-squaretest indicates that the association between genderand motivational needs is not significant. It isobserved that there is a significant associationbetween the geographic profile of the respondentsand self-actualization needs. Further the results ofchi-square indicate that there is a statisticallysignificant association between autonomy andperceived success. This indicates there is a need todevelop autonomy while crafting the jobs and alsowhile inducing them to work.

Summary and Implications

Positive motivation creates power. The presentstudy attempted to assess the need priorities. Thetop two needs which drive the youth are self-actualization and autonomy. It is observed thatamong male respondents autonomy needs are highas reported by 62.1 percent of the respondents,

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whereas among female respondents self-actualization needs are high (59.7 per cent). It isalso found that there is statistically no significantassociation between gender and motivational needs.Though it is observed that to a large extentgeographical profile influences motivation,statistically the results has shown, except in the caseof self-actualization need, there is no significantassociation between the geographical profile of therespondents and other four motivational needs.Further, it was also found that there is a statisticallysignificant association between the need ofautonomy and perceived success. The implicationof the study is that the need priorities vary withthe place where people are brought up. The studyalso revealed that the motivational needs do notsignificantly vary depending on gender. The studypoints mainly towards developing autonomy andmaking them strive for self-actualization. Thereforethe employers should pay attention to these aspects,so that both, people who manage and people whoare managed benefit.

References

1. Allan Okech, Crystal Renée Chambers (2012),Gender Differences in Self-Actualization, inCrystal Renée Chambers, Rhonda VonshaySharpe (ed.) Black Female Undergraduates onCampus Successes and Challenges (Diversityin Higher Education, Volume 12), Emerald

Group Publishing Limited, pp.59-74

2. Chris Harris, Brian H. Kleiner, (1993)“Motivational Practices at America’s BestManaged Companies”, Management ResearchNews, Vol. 16 Iss 9/10, pp.1 – 5

3. David Macarov, (1976) “Reciprocity BetweenSelf-Actualisation and Hard Work”,International Journal of Social Economics, Vol.3 Iss 1, pp.39 – 44

4. Fang Yang, (2011) “Work, motivation andpersonal characteristics an in-depth study ofsix organizations in Ningbo”, ChineseManagement Studies, Vol. 5 Iss 3, pp.272 – 297

5. Faye K. Cocchiara, Eileen Kwesiga, Myrtle P.Bell, Yehuda Baruch, (2010) “Influences onperceived career success: findings from USgraduate business degree alumni”, CareerDevelopment International, Vol. 15 Iss: 1,pp.39 - 58

6. Florence Olu Ogunrin, Olubunmi Ogunrin,Adebayo Akerele, (2007) “Motivating Nigeriandoctors for improved health care delivery”,International Journal of Health Care QualityAssurance, Vol. 20 Iss 4, pp.290 – 306

7. Herman Aguinis, Mahfooz A. Ansari,Sharmila Jayasingam, Rehana Aafaqi, (2008)“Perceived Entrepreneurial Success and Social

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Power”, Management Research: The Journalof the Iberoamerican Academy ofManagement, Vol. 6 Iss: 2, pp.121 – 137

8. Irma Tikkanen, (2007) “Maslow’s hierarchyand food tourism in Finland five cases”, BritishFood Journal, Vol. 109 Iss 9, pp.721 – 734

9. Irma Tikkanen, (2009) “Maslow’s hierarchyand pupils’ suggestions for developing schoolmeals”, Nutrition & Food Science, Vol. 39 Iss5, pp.534 – 543

10. Jan Selmer, Romie Littrell, (2010) “Businessmanagers’ work value changes through downeconomies”, Journal of Chinese HumanResource Management, Vol. 1 Iss 1, pp.31 – 48

11. Lianke Song, Yonggui Wang, Jiangru Wei,(2007) “Revisiting motivation preferencewithin the Chinese context an empiricalstudy”, Chinese Management Studies, Vol. 1Iss 1, pp.25 – 41

12. L W Porter 1964, Organizational patterns ofjob attitudes, New York, American Foundationfor Management Research) Taken from Job L.Pierce & Donald G. Gardner, Management andOrganizational behavior, Thomson2002

13. Martens, Rainer (1970) “Influence ofparticipation motivation on success andsatisfaction in team performance.ResearchQuarterly, Vol 41(4), Dec 1970, 510-518.

14. Maslow, A.H. (1943). “A Theory of HumanMotivation,” Psychological Review 50(4) 370-96 I (http//en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs accessed on10/10/2012)

15. Nevis, Edwin C. (1983)Using an Americanperspective in understanding another cultureToward a hierarchy of needs for the People’sRepublic of China.Journal of AppliedBehavioral Science, Vol 19(3), 1983, 249-264.doi10.1177/002188638301900304

16. Robert Urwiler, Mark N. Frolick (2008) TheIT Value Hierarchy Using Maslow’s Hierarchyof Needs as a Metaphor for Gauging theMaturity Level of Information Technology Usewithin Competitive Organizations,Information Systems Management, Vol. 25, Iss.1, 2008

17. Ruth Alas, (2008) “Attitudes and values inChinese manufacturing companies Acomparison with Japanese, South Korean andHong Kong companies”, Chinese ManagementStudies, Vol. 2 Iss 1, pp.32 – 51

18. Stuart J. Barnes, Andrew D. Pressey, (2011)“Who needs cyberspace? Examining drivers ofneeds in Second Life”, Internet Research, Vol.21 Iss 3, pp.236 – 254

19. Songshan (Sam) Huang, Cathy H.C. Hsu,(2009) “Travel motivation linking theory topractice”, International Journal of Culture,Tourism and Hospitality Research, Vol. 3 Iss4, pp.287 - 295

20. Xuan Van Tran, Arch G. Woodside (2009),How unconscious needs influence traveler’sinterpretations and preferences of alternativetours and hotels, in Arch G. Woodside, CarolM. Megehee, Alfred Ogle (ed.) Perspectives onCross-Cultural, Ethnographic, Brand Image,Storytelling, Unconscious Needs, andHospitality Guest Research (Advances inCulture, Tourism and Hospitality Research,Volume 3), Emerald Group Publishing Limited,pp.215-308

21. Hsin-You Chuo, John L. Heywood (2006),Theme Park Visitors’ Dynamic Motivations,in Joseph S. Chen (ed.) 2 (Advances inHospitality and Leisure, Volume 2), EmeraldGroup Publishing Limited, pp.73-90

22. Maslow, A.H. (1943). “A Theory of HumanMotivation,” Psychological Review 50(4) 370-96.

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Introduction to Human Resource Management

Organisations across the globe rely heavily on anAsset which is Human Resources. Organisation hasthree basic components viz. People, Purpose, andStructure. Human Resource Management (HRM)is the study of activities regarding people workingin an organisation. It is a managerial function thattries to match an organization’s needs to the skillsand abilities of its employees. It is responsible forbringing people in an organization helping themperform their work, compensating them for theirwork and solving problems that arise.

HRM as a body of knowledge has evolved over aperiod of time. There is a significant shift in theduties of the Department handling the HumanResources in the organisation. Gone are those dayswhen erstwhile Personnel Department wasresponsible for monotonous activities such as timekeeping, wage & salary administration, housekeeping. The function has experienced smoothtransition of responsibilities viz. Industrial relationto Administration to more recent Profit Center headin the organization. The Personnel Department isno more looked upon as staff function but is viewedas an integral line function which has direct impacton the well being of the organization. More & more

Human Resource Practices in ISO Certified Small &Medium Enterprises (SME) in Nagpur region

Dr. Rajiv B.Khaire*

ABSTRACT

Human Resources are the most important assets of the organization. No organization can accomplish itsobjectives without the presence of competent personnel. Human Resource Management is the body of sciencethat correlates the existence of able human resources & the success of the organization.

Developed & developing nations alike have depended largely on Small Scale Industries. Traditionally, SSIhas played a major role in the GDP of any economy. They have the lion’s share in the context of IndianExports. ISO certification is a must for organisations if they have to compete in the global arena. There arequite a few benefits that are derived by organisations that have opted for ISO certification.

The current paper tries to understand the HR practices in ISO certified SME’s in Nagpur (India) region. Thedata was collected with the help of a Questionnaire which comprised of close ended statements. The researcherpersonally visited 22 companies in order to collect the data. It was found that ISO Certified SME’s in Nagpurregion have sophisticated HR practices being implemented in their organisation. Barring few parameters thescore of these organisations was indeed very good.

Key Words: Human Resource Practices, Small & Medium Enterprises, International Organisation forStandardisation.

*Assistant Professor, Dept. of Management Technology, Shri Ramdeobaba College of Engineering & Management, (An AutonomousInstitute Affiliated to RTM Nagpur University), Nagpur, rajivkhaire@rediffmail.com

organization in India & elsewhere across the globeare adapting to this paradigm shift in handling themost dynamic factor i.e. Human.

HRM has four basic functions i.e. Acquisition,Development, Motivation & Maintenance. In orderto achieve the organizational objectives HRdepartment performs various operations role viz.Job Analysis, Job Evaluation, Manpower Planning,Recruitment & Selection, Job Design, Training &Development, Performance Appraisal,Compensation Benefits, Employee Welfare, Health& Safety to name a few. Globalisation, deregulationand technological innovation have in recent times,created the need for, faster and more competitiveorganisations. Under these circumstances,organisations are implementing Strategic HRM thatintegrates traditional human resource managementactivities within a firm’s overall strategic planningand implementation.

Introduction to Small & Medium Enterprises(SMEs)

SMEs have always been the engine of growth forevery country, in developed as well as in transitioneconomies. Their role in building a solid industrialbase can be gauged from the fact that they represent

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over 80 percent of industrial enterprises of mostdeveloping countries. They along with microenterprises, have been identified as a high potentialsector for employment generation and source oflivelihood to millions of people in Asian, Africanand Latin American countries. SME constitutesthe bulk of the industrial base and also contributessignificantly to the exports as well as to the GrossDomestic Product (GDP) or Gross National Product(GNP).

In the United States, as per statistics published bythe Small Business Administration, SMEs represent99 per cent of all employers and 52 per cent of theprivate work force. They provide virtually all thenet new jobs and provide 51 per cent of privatesector output and 96 per cent of all export of goods.These figures are similar in many otherindustrialized and developed countries alike aroundthe world especially Japan, France & Italy.

SMEs & India

SMEs play an important role in the IndianEconomy. SMEs always represented the model ofsocio-economic policies of Government of Indiawhich emphasized judicious use of foreign exchangefor import of capital goods and inputs; labourintensive mode of production; employmentgeneration; non concentration of diffusion ofeconomic power in the hands of few (as in the caseof big houses); discouraging monopolistic practicesof production and marketing; and finally effectivecontribution to foreign exchange earning of thenation with low import-intensive operations.

Small scale sector has remained high on the agendaof all political parties, intelligentsia and policymakers since Independence, as a legacy of Gandhianphilosophy.The special thrust to this sector has beenwith the multiple objectives of employmentgeneration, regional dispersal of industries and asa seedbed for Entrepreneurship. The contributionof SMEs has been remarkable in the industrialdevelopment of the country.

The small industry sector has done quite well andhas enabled the country to achieve considerableindustrial growth and diversification. Beinggenerally low capital intensive, SME suit the Indianeconomic environment with scarce financialresources and large population base. In addition, it

is highly labor intensive and has a scope for buildingupon the traditional skills and knowledge.

Introduction to International Organisation forStandardisation (ISO)

ISO is a network of the national standardsinstitutions in 147 countries, organised on a onemember per country basis. Headquartered inGeneva, Switzerland, ISO serves as a monitoringorganisation that meets the requirements ofbusiness and quality. International Standardsprovide a reference framework, a commontechnological language platform between suppliersand their customers. This worldwide agreementfacilitates trade and the transfer of technology. ISOis the world’s largest developer of standards thatplay a crucial role in ensuring quality, safety,reliability, efficiency and interchangeability.

ISO 9000 is at best a framework for qualityassurance; any progress beyond this point cannotbe captured within the printed words of a standard,but must be foremost on the agenda of the manager(Williams, 1997).

The ISO family of standards is the onlyinternational standard that addresses systemicchange. The global adoption of ISO 9001 may beattributable to a number of factors. A number ofmajor purchasers require their suppliers to hold ISO9001 certification. In addition to severalstakeholders’ benefits, a number of studies haveidentified significant financial benefits fororganizations certified to ISO 9001, with a 2011survey from the British Assessment Bureaushowing 44% of their certified clients had won newbusiness. Corbett et al (2005) showed that certifiedorganizations achieved superior return on assetscompared to otherwise similar organizationswithout certification. Heras et al (2002) foundsimilarly superior performance and demonstratedthat this was statistically significant and not afunction of organization size. Naveh and Marcus(2007) showed that implementing ISO 9001 led tosuperior operational performance. Sharma (2005)identified similar improvements in operatingperformance and linked this to superior financialperformance.

Benefits of ISO Certification

The most significant benefits are in terms of raising

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quality awareness in an organisation. Thisreinforces the view that certification is a strongfoundation to start the quality improvementprocess. Even though most SMEs go for ISO 9000series certification for external reasons or beingforced to do so, still the major significantimprovements reported are related to internalimprovements: greater quality awareness, improvedawareness of problems within the organisation, andimproved product quality (Brown et al, 1998).

Quazi and Padibjo (1998) found that ISO 9000-certified SMEs in Singapore reaped a number ofbenefits including: an increased customerpreference, improved company quality image,competitiveness in the market, compliance tocustomer requirement, streamlined procedures anddocumentation, increased consciousness forpreventive and corrective actions, and provision ofa foundation in the pursuit of Total QualityManagement (TQM).

In summary, specific benefits of ISO 9000certification that have been reported by variousauthors are:

• Higher productivity and export sales (Elmutiand Kathawala, 1997).

• Better control of business, reduced costs, fewercustomer complaints (McAdam andMcKeown, 1999).

• Improved quality of work life, increasedcustomer preference, improved companyquality image and competitiveness in themarketplace, stream lined procedures anddocumentation; and increased consciousnessfor preventive and corrective actions (Quaziand Padibjo, 1998).

• Improved competitiveness, improvedrelationship with customers (Quazi and Jacobs,2004).

Literature Review

Internationally, HR strategies in SME have beengiven importance & few studies have beenundertaken to understand the impact of HR onSME business. The last decade witness an increasein the research on HRM practices across the globe.The study conducted by Luc Sels in Belgium hasidentified the impact of HR practices and concludes

there is a direct relation to Financial performanceof the organization, Ashley-Cotleur, Catherine inthe Publication: Journal of DevelopmentalEntrepreneurship undertook a study on Impact ofHuman Resource Management: SME Performancein Vietnam. The researchers have concluded thatthe HR initiatives undertaken in the SME sectorare very limited. Doctoral thesis by NanetteCompeer and additional research by MoniqueSmolders and Jan de Kok. in the EIM Business andPolicy Research magazine in 2005 discussed currentHRM research from an SME perspective. The studyfound that HR practices are more too common inlarge organisations than in Small organisations.Torben Andersen, University of SouthernDenmark Department of Organisation andManagement presented a Paper for LOK-conferenceat Kongebrogården, Middelfart, in 2003. The paperconcludes that SME in Denmark have a veryprimitive existence with regards to HR issues & thatthey are not seriously looked at. Alan Coetzer, AlanCameron, Kate Lewis, Claire Massey & CandiceHarris have done a survey on Human ResourceManagement Practices in Selected New ZealandSmall And Medium-Sized Enterprises. Theirfindings indicated that the HRM practices werepredominately informal, but effective. The studyalso provides a good reference to HR practices withreference to Recruitment, Selection, and Training& Development in SME of New Zealand. PatMcCartan, School of Management, University ofUlster at Jordanstown, N. Ireland has done a Surveyon Human Resource Management in Small-Medium Sized Businesses in Northern Ireland. Thesurvey gives clear indication about the HRinitiatives taken by the entrepreneurs.

SMEs have been cynosure for all policy makers.Across the globe, social scientists are interested inSME. In India SME is seen as an important driverfor economic development. SME sector has beencatching the fancy of Indian policy maker for quitesome time. This is evident from the differentcommittees that are appointed to understand theproblems faced by SME & provide impetus fordevelopment. Nayak Committee (December 1991),Abid Hussain Committee (December 1995),S.P.Gupta Committee (May 1999), S.L KapoorCommittee (December 1997), S.S.KohliCommittee(November 2000) are few Committees

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which were formed by Reserve Bank of India &theGovernment of India for understanding the SmallScale Sector.

The focus of these Committees was more on theFinance paradigm. Efforts were taken by otherscientist in order to understand other facets of SSI.There have been studies undertaken by IndianSocial Scientist in Cluster Development, Sicknessin SSI, Reservation & De reservation Policy for SSI,Marketing problems faced by SSI. The Third Censusof SSI in India provides only a glimpse the reasonsfor the problems faced by the sector. The reasonsfor Sickness & incipient sickness in SSI is attributedto labour problems, Management problems amongstother problems which comprise of Marketingproblem, lack of demand problems & equipmentproblem. In fact, All India Management Associationin their survey on Small Sector in India: Assessmentof Growth after liberalization comes out withfollowing realisation. Human Resource Constraintshave been identified as an important barrier asfinance. There are regional differences as far thehuman resource constraints are concerned. In theNorthern region, stringent labour laws and cost ofhuman capital have emerged as more importanthuman resource constraints. In the Eastern region,all the constraints are important but the lack oftraining programs for SSIs have emerged as moreimportant. In the Western region too it is the lackof programs for the SSIs which have beenconsidered as an important constraint. In theSouthern region human resources or lack ofprograms have been considered as a constraint.

Research & Study of human resource managementin SMEs is of recent globally and almost non-existent in Indian. Although attempts were madeto understand HR practices in large organisations,almost negligible attention is given to understandHR practices in SME. Ms.Renuka Swamy & Mr.Balaji A. Venkateshwara of JSS Academy ofTechnical Education studied the difference amongstthe HR practices of 300 ISO Certified & Noncertified Mechanical manufacturing firms inKarnataka in a paper that they published in theSingapore Business Journal. The study found asignificant difference of HR practices amongst thefirms along with the use of advanced of Technology.

Objectives of the Study

This research is a serious attempt to understandthe present scenario in Small & Medium Enterprisesin Nagpur Region with reference to HumanResource Management practices implemented byEntrepreneurs who own ISO Certified SMEs. Theresearch focus, specifically on the Human ResourceManagement strategies adopted by the differentorganisations. The overall objective of this researchis to investigate HRM practices & its importancein the context of an individual organisation whichare primarily located in Nagpur region. Small &Medium enterprises which manufacture goods arechosen as the research context.

The major objectives of this Research are mentionedbelow:

• To understand the concepts of HumanResource Management, Small & MediumEnterprises & International Organisation forStandardisation.

• To investigate the entire existing gamut ofHRM activities implemented by theorganization consisting of the samples.

Hypothesis of the Study

For the ease in analysis the investigator hasformulated following hypothesis, which will eitherbe accepted or rejected on analysis of the datasurveyed. The hypothesis for the analysis of datacollected by survey will be:

Null Hypothesis: HR initiatives taken in the ISOCertified SME organisations are rudimentary &almost nonexistent.

Alternate Hypothesis: ISO Certified SMEorganisations follow the best HR practices in theirorganisation.

The researcher would like to use One Tailed t-Testfor testing the above Hypothesis.

Apart from the above, the researcher would like toassume the following which also makes it a part ofHypothesis.

• The information provided & gathered duringData Collection will be true.

• There may be very little margin for flaws inthe data collected & coded.

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Scope of the Study

The study covers the geographical area of Nagpurregion covering Small & Medium Enterprises(SME’s) in that region. Further the region ofNagpur is divided into Hingna, Butibori,Kalmeshwar & Uppalwadi industrial belts.InNagpur region there are 6500 & 499 Small &Medium Enterprises respectively.

Sampling Units

The study selected four industrial belts in Nagpuri.e. Hingna, Butibori, Kalmeshwar & Uppalwadi asthe sample frame. The data required for the studyhas been collected from a sample of 586 SME’slocated in these four areas.

Sampling Technique

The researcher has used Non probability samplingmethod in order to select 22 industries whichrepresent the four areas disproportionately.Convenience sampling was used to take the decisionof the final 22 Companies which were ISO Certified& operating as SMEs.

Sources of Data

Primary Source of data was collected through thequestionnaire that was designed keeping in mindthe objectives of the research. Various journals,magazines & websites were used as Secondarysources of data.

Parameters for the Current Study

For the investigation, the researcher has used 10parameters viz. Training & Development,Organisation Design, Human Resource Planning,Selection & Staffing, Compensation Benefits,Employee Assistance, Labor Relations,Communication, Employee Involvement &Performance Appraisal. In order to choose the aboveparameters the researcher used the model developedby the American society for Training andDevelopment (ASTD) in 1983.

Research Tool (Questionnaire)

The present study incorporates understanding ofHR initiatives taken in SMEs. Hence thequestionnaire is developed, on the basis of issuesthat are related to HRM. The questionnaire isdesigned with the help of Likert type scalingtechnique.

The study identified ten parameters on which thequestionnaire is to be designed. Each parameter hadfour statements out of which two had positive &two had negative connotation. This waspurposefully done in order to get an unambiguouspicture of the issues. In order to select the fourstatements the researcher collected a large numberof statements which were relevant to the parametersdecided. Each statement expressed a definitefavuorableness or unfavourableness to a particularparameter. This method is akin to DelphiTechnique. All in all 40 (Forty) statements werefinalized to be included in the instrument.

Administration of Questionnaire

The researcher used Structured ScheduledInterview technique for getting the informationrelevant to the study. The selection of samples hasalready been discussed. The researcher met all the22 respondents at the designated place. The purposeof the visit was made clear in the initial few minutesof the meetings & then actual responses pertainingto the statements were recorded by the researcher.

Table 1 : DEMOGRAPHIC PROFILE OF THERESPONDENTSFactors

Public Limited 3

Type of Organisation Private Limited 11

Proprietorship 4

Partnership 4

TOTAL 22

0 - 10 1

11 - 30 8

31 - 50 4

Number of Employees 51 - 70 1

71 - 90 2

91 & above 6

TOTAL 22

1960 – 70 2

1971 – 80 1

Year of Establishment 1981 – 90 1

1991 – 2000 13

2001 & onwards 5

TOTAL 22

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The above table provides information regardingSME establishments that were contacted for thepurpose of this study. 50% of the SMEestablishments were Private Limited companies,followed by equal 18.2 % representation ofProprietorship & Partnership concern. Apercentage of 13.6 of the respondents were PublicLimited Companies. Close to 59 % of the firms hadnumber of employees less than 50. 13.6 % ofcompanies were having employees more than 91.Rest 27.4% of the companies had employees in therange of 51 -90. Majority of the firms were set upin the last two decade. In the sample, 82% of thefirms have come into existence in the last twodecades. The increase in the numbers can beattributed to the LPG regime of the then FinanceMinister Dr. Manmohan Singh. A small 18.2 % ofthe firms have come into existence before 1990. Itwas interesting to know their understanding of HRpractices.

Data Analysis & Interpretation

The data that was collected was treated in differentways. We will try to understand with the help ofthe following two tables. The first table provides agood understanding of the different statistics viz.Mean, Standard Deviation which will help us intaking some decisions regarding the data that iscollected. The second & the most important tableprovide us insight in the Testing of Hypothesis inwhich we are interested to take decision whetherto accept or reject the Null Hypothesis. The tables

& a brief description are provided below. (Table 2)

A close look at the table provides an insight intothe responses for the ten parameters with referenceto Arithmetic Mean & their variability. Majorityof the parameters show very good scores on the HRpractices which is evident from the score ofArithmetic Mean & also looking at the value ofStandard Deviation. Of all the parameters HumanResource Planning, Performance Appraisal &Employee Involvement has the lowest scores. Thisis a cause of concern as Number & type ofemployees required by the organisation, CareerAdvancement of employees & employee’sparticipation is not being adopted in the ISOCertified organisations. It needs to be seen whethert-Test also supports the statement mentioned above.(Table 3)

The researcher has used t-Test for Testing theHypothesis as the sample size is less than 30. ThePopulation Mean is compared with Assumed Meanof 3-000 with alternative that Sample Mean is lessthan Assumed Mean. This is done with desired Pvalue as 5% & df as 21 with corresponding t-Tablevalue as 1.721. In order to reject the NullHypothesis, t value is calculated & seen whether itis more than Table value of t-Test. A close look atthe table signifies that majority of the parametershave their t-Value falling in the rejection region.Since almost all the parameters t-Value is lying inthe rejection region, one can conveniently rejectthe Null Hypothesis. Rejection of Null Hypothesis

TND-Training & Development, OD-Organisation Design, HRP-Human Resource Planning, SNS-Selection & Staffing, CB-Compensation Benefits, EA-Employee Assistance, LR-Labour Relations, C-Communication, EI-Employee Involvement, PA- Performance Appraisal

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signifies acceptance of Alternate Hypothesis. Theresearcher would like to conclude that of the 10parameters, 7 have shown very goodimplementation of Human Resource functions.

It is however, to be concluded that three parametersviz. Human Resource Planning, PerformanceAppraisal & Employee Involvement have their t-Value not falling in the Critical region. For theseparameters, we can’t s reject the Null Hypothesis& can conclude that there is a lot of ground to becovered by ISO certified SME for implementinggood practices.

Conclusions

In conclusion SME establishments are aware aboutthe different current facets of HR. Almost all SMEestablishments have heard about the latestterminology as far as HR domain is concerned.They anticipate changes in the environment & inorder to tackle the challenges appreciate the role ofTraining & Development. They have maintainedTraining Policy to be followed in the organisation.They maintain & follow Organisation structurestrictly. In fact they have Job Descriptions of thedifferent roles performed in the organisations whichis communicated to all the stakeholders. Theyunderstand the utility of scientific Recruitment &Selection. They also have good Compensation

offered to their employees which is comparable inthe region. The organisations have an Open doorpolicy to make sure that the employees come &share their problems with their supervisors. Themanagement was Proactive in terms of having goodlabour relations. Although, there were fourorganisations which had Recognised Trade Unions,other did not have any experience of havingOrganised Labour. To remain competitive in thebusiness environment they understand theimportance of Employee Communication & don’twant to keep any stone unturned in order to getfeedback from the employees. The employees wereasked to give suggestions to improve their Workdesign & there were instances of giving reward tothe employees whose suggestions culminated intothe benefit of the organisation.

It was found that, the organisations were seldombothered to foretell the future or currentrequirements. Human Resource Planning is seenas a fire fighting role. As & when there is anopportunity to increase the number of employees,organisations tap sources for employees.Performance Appraisal in the organisations lackeddevelopmental orientation. The appraisal systemthat was used was neither used for identificationof training needs nor for any feedback or feedbackbased counseling. Majority of the organisations

TND-Training & Development, OD-Organisation Design,HRP-Human Resource Planning, SNS-Selection& Staffing, CB-Compensation Benefits, EA-Employee Assistance, LR-Labour Relations, C-Communication,EI-Employee Involvement, PA-Performance Appraisal

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were following Annual pattern for PerformanceAppraisal and documentation was week. There wasno evidence of the Worker’s Participation inManagement concept was implemented in theorganisation. Very few organisations werecomfortable in involving employee for keydecisions.

Future Direction of the Study

The scope of the present study is limited & hencethere are ample opportunities for the researchersto execute a similar study in different geographicallocations of India. This may also validate theresearch findings of the current study. The researchwas conducted in an urban region i.e., Nagpur. Theresearch is primarily composed of 22 firms. Theobjectives of this study were to provide an insightwhether ISO certified SME establishments inNagpur region are implementing HR practices usedin large organisations. Following are few questionsthat may act as a basis for future research.What isthe relationship between effectiveness andperformance of a firm? when contrasted to HRMpractices utilized by SMEs? What differences exist,if any, between ISO SMEs and Non ISO SMEs inHRM practices? Is there any difference betweenHR practices followed in urban ISO certified SME’s& rural ISO certified SME’s?The results of suchresearch questions regardless of outcomes mayclarify relationships for the benefit of bothacademicians and practitioners.

References

1. Agrawal A.N. Indian Economy. Problems ofDevelopment & Planning. 20th Edition.Vishwa Prakashan. p 342-354

2. Annual report-Directorate of Small ScaleIndustries of Maharashtra 2005-06

3. Armstrong Michael A Handbook of PersonnelManagement Practice. Kogan Page 6th Edition1196, p 28-35, 435-446

4. Aswathapa K Human Resource ManagementTata McGraw Hill 5th edition p 4-33 2008, 239-243,646-649

5. Badi R V & N V Badi, Entrepreneurship,Vrinda Publications P Ltd, ,!st edition .p 155-168, 369-377, 489-505

6. Beardwell Ian & Len Holden Human ResourceManagement – A Contemporary Prospective.Macmillan India Ltd. 1st Edition.p14-19, 118-123, 169-172, 302-303

7. Cascio W F: Managing Human Resources,Productivity Qualities Of Work Life, Profits.(2) New York. Tata Mcgraw Hill, 2006 . p199-201285, 381-382, 470-472

8. Cloakes Sheridan, Lyndall Steed, Peta Dzidic,SPSS Version 13.0 Analysis without Anguish, Wiley India p 3-18, 62-66

9. Desai Vasant, Small and Medium Enterprises.Old Edition, Himalaya Publications House,1992

10. Gupta N K: Small Industry Challenges andPerspectives. Delhi. Anmol Publications, 1992First Edition p 1-18,84-91

11. Hooda R P: Statistics For Business AndEconomics(R). Delhi. Macmillan India Ltd,1994.

12. Khaire Rajiv B., IUP Journal of ManagementResearch, Issue: April 2010, Volume 9, No 4. p69-81

13. Luthans Fred, Avis L. Johnson and Harry W.Hennessey, “The Role of Locus of Control inLeader Influence Behaviour,” PersonalPsychology, Spring 1984, p. 70.

14. Mustafi, Chandan Kumar Statistical Methodsin Managerial Decision. MacMillan IndiaLimited

15. Small & Medium Enterprises, All IndiaManagement Association, Excel Books, FirstEdition 1998, p 41-50

16. Vyas J N: Small Scale Industry Handbook.Ahmedabad. Sapna Industrial & alliedPublishers, 1999. p17-22, 307-319

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Volume IV, Issue II

Introduction

Self Help Group Bank Linkage Programme (SBLP)in India is the largest Microfinance Programme inthe world. Two decades have elapsed since the Pilotproject by NABARD and MYRADA in 1992 bylinking 500 SHGs. In the first decade, the progresswas impressive covering 0.5 million households. Inthe second decade, the programme made rapidstrides andcovered over 8 million households. Thestate of Andhra Pradesh has always been a activeparticipant in the Programme and has beenmaintaining its dominant status in implementationof the programme. SBLP was launched with an aimof empowerment and upliftment of the poor andwas not gender centric. As the results were not onexpected lines, Andhra Pradesh innovated andmade the programme women centric and with goodresults. With the success of the women-centricprogramme in Andhra Pradesh, other states areemulating the Andhra Pradesh women-centricmodel. More than ten million poor womenhouseholds (SERP 2010) are covered under theprogramme in Andhra Pradesh.

SBLP has been recognized as decentralized, costeffective and fastest growing MF initiative in theworld enabling over 103 million poor householdsaccess to a variety of sustainable financial servicesfrom the banking system. More than 8 million (NABARD 2012)SHGs have become the bankscustomers. The bank linkage has enabled the SHGmembers to pool their savings and access credit.This financial discipline and access provided thepoor a platform to launch livelihood initiatives andalso facilitate empowerment process.

Through SBLP, the poor are initially givenmicrocredit at lower rates of interest. To be eligiblefor micro credit, they have to form groups ofhomogenous nature. Prior to applying for loan, theyhave to show financial discipline in the form ofsavings. The group should be adequately old enoughfor it to be judged. The bank initially sanctions an

*Professor, Department of Commerce & Registrar, Dr. B. R. Ambedkar Open University, Jubilee Hills, Hyderabad. **Assistant Professor,Department of Business Management, Matrusri Institute of PG Studies, Hyderabad.

Social and Behavioural Impact of SBLP on Beneficiaries:A Study in Select Districts of Andhra Pradesh

Dr. A. Sudhakar* and Dr. M.S Rama Devi**

amount equivalent to four times the groups’savingscorpuswhich is equally distributed amongthe beneficiaries. All the beneficiaries have to repaythe loan within a stipulated time. Once the firsttranche of loan is repaid, a second tranche of biggerloan will be sanctioned and the same cyclecontinues.This process of the programme will resultin economic, social and behavioural impact at theindividual level, household level and communitylevels. With micro savings and micro credit beingthe main aspects of SBLP, the economic impact is amore visible feature of the programme.

Review of Literature

Murthy et al. (1999) explored the “sociability”impact of participation in MFO groups. Theyreported that 91 per cent of beneficiaries had visitednew places in the previous five years compared to31 per cent of non beneficiaries; 83 per centreported an increase in friendships compared to 26per cent of non beneficiaries, with a higher percentage of the former reporting friends from othercastes.

Dwarakanath H.D [2002] analysed thecharacteristics and growth of self-help groups inAndhra Pradesh and found that the SHGs usingthe loan facilities from the cooperative credit banks,commercial banks, Mahila bank and Maheswaranbanks, have produced more than 50 varieties ofproducts. Among them, the brass items, hosiery,candles, carpets, coir items and pickles areimportant products. In addition the author says thatthe women groups started to educate their owngroup beneficiaries and also they realised theimportance and significance of literacy whereas alot of enthusiasm has been generated and the SHGshad a greater vision in empowerment of ruralwomen and for overall human development.Moreover, the SHG beneficiaries proved the way tothe power of decision making to the women in theirfamily, and also create a mass on socio-economicand political condition in this district.

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APMAS (2003) initiated a field study on SHG BankLinkage Programme found that more than 50 percent of SHG-bank linkages in the country are inAndhra Pradesh. The study covered 8 districts inthe state and felt that more than 50 per cent of SHG-bank linkages in the country are in Andhra Pradesh.Beneficiaries appeared to value their associationSHGs and to value the SHG’s association with itsbank. In particular, they felt that they now hadaccess to formal financial institutions, to credit, thattheir income levels had improved, that their savingshabit had improved. They felt, however, thatemployment opportunities had not significantlyincreased. They felt that they were not quite freefrom moneylenders yet, and that they did not yetspend as much on food as they needed to. Levels ofconfidence, of self-reliance, of ability to makedecisions, of leadership quality had all increased.Education levels and ability to negotiate with otherlocal bodies had also improved, but not to the extentdesired.

Moyle, et al. (2006)assessed the economic andpersonal empowerment of 100 women agedbetween 16 and 65 years, participating in SHGsfrom two villages (Delwara and Shishvi) inRajasthan. Based on qualitative data, the studyfound that after joining SHGs, the beneficiariesachieved both economic and personalempowerment in terms of collective efficiency, pro-active attitudes, self-esteem and self efficacy. In caseof personal empowerment, 99 per cent of womenbelieved that ‘self-help group beneficiaries arealways able to discuss problems that affecteveryone’, and 91 per cent of women believed that‘if a problem arises that people cannot solve bythemselves, the group as a whole will be able tosolve it’. Similar results were found in case ofperceived capability of group beneficiaries. Eightyone per cent of beneficiaries believed that ‘I haveconfidence that our group beneficiaries can performthe tasks that are assigned to them’ and 85 per centbelieved ‘our SHG has the ability to tackle any issueaffecting the group’. In terms of perceived efficacyto solve problems as a group, 60 per cent believedthat ‘as beneficiaries of this group, we are able totackle the most difficult situations because we areall committed to the same collective goals’. In caseof proactive attitude, 63 per cent of the womenbelieved exactly true that ‘I feel responsible for my

own life’ and 93 per cent believed that they were‘able to choose their own actions’. Ninety-seven percent said that ‘they focus their efforts on things thatthey can control’. In terms of ‘self-esteem’, 91 percent of women strongly felt that they had goodqualities, and 71 per cent strongly agreed that theyhad a positive attitude towards themselves. Besidesthese positive results the study also found negativeappraisals of pressure, challenges and stress for mostof the SHG beneficiaries.

NCAER (2008) assessed the impact andsustainability of SHG bank linkage on thesocioeconomic conditions of the individualbeneficiaries and their households in the pre-SHGand post-SHG scenarios. The study was conductedfor India as a whole covering six states (AndhraPradesh, Karnataka, Maharashtra, Orissa, UttarPradesh and Assam) from five different regions,namely the south, west, east, central and north-east.The overall findings of the study suggest that SBLPhas significantly improved the access to financialservices of the rural poor and had considerablepositive impact on the socio-economic conditionsand the reduction of poverty of SHG beneficiariesand their households. It has also reported thatempowered women beneficiaries substantiallycontributed to increased self-confidence andpositive behavioural changes in the post-SHG periodas compared to the pre-SHG period. The results ofthe analysis at the level of the SHGs suggest thatbank-linked SHGs have performed better than thenon-bank-linked groups not only in respect toproviding financial services, but also in humandevelopment terms. Their awareness level on mostissues has gone up. They feel empowered enoughto develop their human resources and managementskills and, most importantly, acquire leadershipqualities.

The Present study

A considerable number of studies are found oneconomic impact and only a few studies haveconcentrated on social and behavioural aspects.The present study analysed the social andbehavioural impact of SBLP on the beneficiaries andtheir households in Andhra Pradesh.

Objectives of the Study

1. To analyze the social and behavioural impact

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of the programme.

2. To assess region wise variation in social andbehavioral impact in Andhra Pradesh.

3. To identify rural urban variation in the socialand behavioural changes.

Methodology

As the SBLP is for the poor and downtrodden, toanalyse the impact of SBLP, most backward districtsin Andhra Pradesh are selected. Hence, from eachregion a backward district in terms of HumanDevelopment Index (HDI), Human Poverty Index(HPI), Gender Development Index (GDI) & GenderEmpowerment Index (GEM) is selected.A multistage sampling is adopted and four regions areidentified in the state of Andhra Pradesh namelyNorth Coastal, Coastal, Telangana and,Rayalaseema. Vizianagaram from North Coastal,Guntur from Coastal Andhra, Mahboobnagar fromTelangana and Anantapur from Rayalaseema areidentified. Four backward mandals from eachdistrict and 64 villages and 16 urban segments weresurveyed to cover 936 sample SHG members.ANOVA and Paired t-test results are analysed tomeasure the social and behavioural impact as awhole, particularly to four regions and also for ruraland urban areas. Identified factors for social andbehavioral impact were ranked according to meanscores and are presented.

Analysis of Table 1 reveals that participation frombackward castes is more covering 80 per cent ofthe beneficiaries, and the group size is ideal andequivalent to AP average (12). More than 75 percent groups are in 10 to 13 members. 60 per cent ofthe beneficiaries are literates and among them 27have primary education and 32 per cent havesecondary education 37 per cent of the beneficiariesare Agricultural labour and 49 per cent are in smalland petty businesses. 60 per cent are in 5000-10000income range.

Social Factors

The social impact variables are found to beinvestment in human and social capital such aseducation, health, confidence, skills, empowerment,social networking and mobility. Based on the abovedimensions, an attempt was made in the study tomeasure the impact on social and behavioural

changes on the beneficiaries and their householdsthrough SBLP. The impact on social and behaviouralaspects is presented below.

To measure the social impact of SBLP onbeneficiaries households, 5 point Likert Scale isused to analyse the data of beneficiaries for beforeand after SBLP situations. The 5 attributes arecategorized as Nil, Low, Moderate, High and VeryHigh. Negligible or Zero results were adjusted tothe next or to the previous category.

Social Impact – General Awareness

Awareness is one’s personal conscious recognitionof the state of matters surrounding himself, or isthe state or quality of being aware of somethingand is also the state or ability to perceive, to feel, orto be conscious of events, objects or sensorypatterns.

Beneficiaries were asked whether they know whatis going on in their houses, village, state, country.They were further asked whether they have visitedany village or town outside their place of stay. Basedon their responses, their general awareness arecategorized as Nil for Not knowing what is goingon outside, Low for Knowing what is going onoutside in the village, Moderate for Knowing whatis going on outside in the state, High for Knowingwhat is going on outside in the country and veryhigh for Knowing what is going on outside thecountry. The data collected from the beneficiariesis presented under Table- 2.

From the analysis of Table-2 it was observed that37.92 per cent beneficiaries’ general awareness hasimproved from next to nothing. 37.93 per centbeneficiaries awareness has improved moderately.It was further found that TV in households thereason for increased general awareness. Analysingthe general awareness factor, it is concluded thatthe beneficiaries general awareness has improved.

Social Impact – Exposure

Exposure to various factors outside the houseimpacts on the individual. Man being a socialanimal, constant exposure to outside thingsdevelops the individuality of self. This will startprovided the individual is confident. This in generalcomes with economic freedom. Beneficiaries wereasked in general about their perception of the term

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Table-1 : Socio Economic Profile of the SBLP members

District TotalVizianagaram Guntur Mahboobnagar Anantapur

SHG Age in Years5-8 124(71.70) 159 (57.20) 59(29.10) 148 (52.50) 490 (52.40)9-12 47(27.20) 108 (38.80) 136(67.00) 128 (45.40) 419 (44.80)>=12 2(1.20) 11 (4.00) 8(3.90) 6(2.10) 27 (2.90)Group Size10-11 78(45.10) 229 (82.40) 43(21.20) 190 (67.40) 540 (57.70)12-13 52(30.10) 30 (10.80) 61(30.00) 38(13.50) 181 (19.30)>=13 43(24.90) 19(6.80) 99(48.80) 54(19.10) 215 (23.00)Age21-30 39(22.50) 26 (9.40) 3(1.50) 77 (27.30) 145 (15.50)31-40 59(34.10) 93 (33.50) 77(37.90) 101 (35.80) 330 (35.30)41-50 53(30.60) 130 (46.80) 93(45.80) 65 (23.00) 341 (36.40)>50 22(12.70) 29 (10.40) 30(14.80) 39 (13.80) 120 (12.80)ReligionHINDU 164(94.80) 187 (67.30 190(93.60) 252 (89.40) 793 (84.70)MUSLIM 2(1.20) 23 (8.30) 13(6.40) 20 (7.10) 58 (6.20)CHRISTIAN 7(4.00) 68 (24.50) 0(0.00) 10 (3.50) 85 (9.10)Social CategoryOC 16(9.20) 68 (24.50) 13(6.40) 63 (22.30) 160 (17.10)BC 115(66.50) 116 (41.70) 124(61.10) 163 (57.80) 518 (55.30)SC 36(20.80) 86 (30.90) 32(15.80) 35 (12.40) 189 (20.20)ST 6(3.50) 8(2.90) 34(16.70) 21 (7.40) 69 (7.40)LiteracyYes 94(54.30) 166 (59.70) 76(37.40) 229 (81.20) 565 (60.40)No 79(45.70) 112 (40.30) 127(62.60) 53 (18.80) 371 (39.60)EducationPrimary 28(16.20) 83(29.90) 14(6.90) 126(44.70) 251(26.80)Secondary 64(37.00) 78(28.10) 61(30.00) 95(33.70) 298(31.80)Graduate 2(1.20) 5(1.80) 1(0.50) 7(2.50) 15(1.60)Technical 0(0.00) 0(0.00) 0(0.00) 1(0.40) 1(0.10)NA 79(45.70) 112(40.30) 127(62.60) 53(18.80) 371(39.60)OccupationHousewife 22(12.70) 11 (4.00) 19(9.40) 37 (13.10) 89 (9.50)Ag.Labourer 64(37.00) 107 (38.50) 92(45.30) 81 (28.70) 344 (36.80)Business 82(47.40) 143 (51.40) 84(41.40) 145 (51.40) 454 (48.50)Landlord 2(1.20) 11 (4.00) 7(3.40) 8(2.80) 28 (3.00)Service 3(1.70) 6 (2.20) 1(0.50) 11 (3.90) 21 (2.20)Family IncomeLess than 2000 1(0.60) 0(0.00) 0(0.00) 13(4.60) 14(1.50)2-5000 51(29.50) 31 (11.20) 27(13.30) 37 (13.10) 146 (15.60)5001-10000 108(62.40) 122 (43.90) 142(70.00) 182 (64.50) 554 (59.20)>10000 13(7.50) 125 (45.00) 34(16.70) 50 (17.70) 222 (23.70)

173(100) 278 (100) 203(100) 282 (100) 936 (100)

Source: Primary Data Note : Figures in Paranthesis are percentages.

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Table 2 : Social Impact on Beneficiaries – General Awareness

Social Impact – General Awareness Nil Low Moderate High

Respondent general awareness beforejoining the group 201(21.47) 454(48.50) 254(27.14) 27(2.88)

Respondent general awarenessafter joining the group 19(2.03) 281(30.02) 585(62.50) 51(5.45)

% Change (After) 19.44 18.48 35.36 2.57

Source: Primary Data Note : Figures in Paranthesis are percentages.

exposure and what SBLP has imparted to them. Theresponses received are categorized as nil for notknowing what is going on outside, low for knowingwhat is going on outside, moderate for knowingwhat is going on outside and expressing opinion,high for knowing what is going on outside andtrying to participate in the same, very high forknowing what is going on and being a part of thesame. The data is presented in Table-3

From the analysis ofTable-3 it is observed that theexposure level among the beneficiaries hasimproved by 22.29 per cent from their pre-SBLPlevels. Exposure to outside world is a positive impactof SBLP on the beneficiaries. The reasons forimprovement in exposure is due to their constantinteraction with people, either with bank personnelor peers or even government officials etc.

Social Impact – Friendship

Friendship is a relationship based on equal give andtake between the two people. This form ofinterpersonal relationship is generally consideredto be closer than association. Sympathy, empathy,honesty, perhaps in situations where it may bedifficult for others to speak the truth, especially interms of pointing out the perceived faults of one’s

counterpart, mutual understanding andcompassion, trust in one another, ability to go toeach other for emotional support, positivereciprocity etc. are factors associated with the termfriendship. Having no friends can be emotionallydamaging in some cases. Acquaintance is a sort offriendship where sharing of emotional ties areabsent. The conventional wisdom is that goodfriendships enhance an individual’s sense ofhappiness and overall well-being. But a number ofsolid studies support the notion that strong socialsupports improve a woman’s prospects for goodhealth and longevity.Friendship, is a uniqueamalgamation of much fun, trust, respect, love andloyalty. Friendship can be strong attachments,mutual respect, similar interests are what, most ofthe friends share with one another. Beneficiarieswere asked in general what they perceive of the termfriendship and what SBLP has imparted to them.The responses received are categorized as nil fornot having any friends at all, low for havingacquaintances with persons in their group only,moderate for having acquaintances outside thegroup in the village, high for having acquaintancesoutside the group and outside the village, very highfor having acquaintances outside the state. The

Table- 3 : Social Impact on Beneficiaries – Exposure

Social Impact – Exposure Nil Low Moderate High

Respondents’ exposure beforejoining the group 175(18.70) 450(48.08) 274(29.27) 37(3.95)

Respondents’ exposure afterjoining the group 67(7.16) 350(37.39) 454(48.50) 67(6.94)

% change (After) 11.60 10.69 19.23 2.99

Source: Primary Data Note : Figures in Paranthesis are percentages.

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sampled data is presented in Table-4.

On analyzing Table-4 it is observed that post SBLP,the friendship or acquaintances has commenced in22.33 per cent of beneficiaries and improvementwas observed in identical outgoing beneficiaries.Many studies have emphasized the fact that as theexposure to outside world grows in an individual,facets like friendship, helping others, generalawareness etc. increase. The same results have beenobserved from the analysis of the survey data. TheseSBLP women have not had decent exposure tooutside world and thus their world was limited totheir household chores and labour activities forsustenance. SBLP played a positive role in the mindsof these women and thus there is a gain in theseinterlinked factors like general awareness, exposureand friendship.

Social Impact – Helping Others

Man is a social being and he wishes to live in groups.People living in groups tend to help others whenneeded. A person who is compassionate helpsothers. A person who listens and observes also helpsothers. Helping others is a great way to makefriends. Helping others is to give or provide what isnecessary to accomplish a task or satisfy a need;contribute strength or means to; render assistanceto; cooperate effectively with; aid; assist etc.Beneficiaries were first asked who their closefriends are and the frequency of interaction amongthem. They were asked about their interactionswith neighbours . They were further asked what is

the impact after joining the SBLP. They were askedif they have tried to help others, the responsessolicited from the sample beneficiaries arecategorized as nil for never helping others, Low fortrying to help others in family or immediateneighbours, moderate for trying to help others intheir SBLP, high for trying to help others outsidetheir group in the village, very high for trying tohelp others outside the village. The beneficiariesresponses are presented in the Table-5.

Analysis of Table-5 identifies that after SBLP,marginal change in the outlook of the beneficiarieswas observed in 31.72 per cent, and good changewas observed in 31.74 per cent. It’s concluded thatchange was impacted on beneficiaries after SBLP,shy people started coming out and a bit more openpeople started opening up further. This sign is apositive impact of SBLP.

Social Impact – Mobility

In a society that defines itself by some type of statushierarchy, people naturally move up and down inthe system throughout their lives. Socialmobilityrefers to how far and how easily a person can movein the social system. People looking to gain powerand influence, or simply an easier or more luxuriouslifestyle, are often said to be upwardly mobile.Socialmobility often depends on what the societyvalues the most. If it is a society driven by moneyand possessions, the highest ranks will be ownedby those with the most money or biggest house. Thesampled data is presented below in table 6

Table-4 : Social Impact on Beneficiaries – Friendship

Social Impact – Friendship Nil Low Moderate High

Respondents’ friendship before joining the group 177(18.91) 449(47.97) 271(28.95) 39(4.16)

Respondents’ friendship after joining the group 67(7.16) 350(37.39) 454(48.50) 65(6.94)

% change (After) 11.75 10.58 19.55 2.78

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table - 5 : Social Impact on Beneficiaries – Helping OthersBehavioural Impact - Helping Others Nil Low Moderate High

Respondent helping others before joining the group 175(18.70) 451(48.18) 273(29.17) 37(3.95)

Respondent helping others after joining the group 56(5.98) 273(29.17) 523(55.88) 84(8.98)

% change (after) 12.72 19.01 26.71 5.03

Source: Primary Data Note : Figures in Paranthesis are percentages.

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From the analysis of Table-6 it is observed that for22.29 per cent beneficiaries the mobility upwardhas started and for 21.48 per cent beneficiaries areon improvement mode. Social and economicmobility is a change factor and this cannot be feltin a short span of time or overnight.Further it’s acontinuous process.

Social Impact – Benefit from Govt Programmes

In Andhra Pradesh, SBLP is a governmentprogramme aimed at the economic poor. Naturally,any beneficiary derives benefit from thegovernment either directly or indirectly. Since, theexisting DWCRA groups were linked to Banks, theSBLP beneficiaries in Andhra Pradesh are virtuallythe beneficiaries of government subsidies. Thus, theattributes of Likert Scale are categorized on the typeof benefit received from the government.Beneficiaries who have not availed any benefit fromthe government was categorized as nil, low for onlyavailing Pavala Vaddi Scheme, moderate for availingboth Deepam and Paval Vaddi Schemes, high foravailing IKP houses, Deepam, Pavala Vaddi Schemeand very highfor scholarships and pensions.

From the analysis of Table -7 it is observed that nobeneficiary has derived any government benefitprior to SBLP and post SBLP, 98.50 per centbeneficiaries have received benefit from thegovernment schemes. 42.09 per cent beneficiaries

have benefitted from the Pavala Vaddi scheme and56.41 per cent beneficiaries benefitted from IKPhousing scheme.

It may also be concluded that one of the mainreasons for a woman to join SHGs was to benefitfrom the government schemes. In Andhra Pradesh,SBLP is purely government subsidized programmeto help the economically poor.

Social Impact – Fight against Social Evils

Arrack, gambling are the most visible social evilsin the rural areas. Consequent to this, womanbeneficiaries in particular and their householdshave become affected. These two are not muchvisible in urban areas due to high population andbusy work schedule and survival for existence ofpeople. Beneficiaries were asked first whether theirmale beneficiaries have or had the habit of drinkingarrack or gambling. They were further asked toexpress their feelings on these social evils and theirapproach to curb the same. The responses solicitedfrom the sample beneficiaries are categorized as Nilfor No Activity / Docile, Low for Wishing to curbin the family, Moderate for trying to curb in thefamily, high for Educating the friends, very highfor Fighting at the village level. The beneficiariesresponses are presented in Table- 8.

From the analysis of Table-8 it is observed that theurge to fight against the social evils is there butdormant or low. The beneficiaries responded that

Table 6 : Social Impact on Beneficiaries – MobilitySocial Impact – Mobility Nil Low Moderate High

Respondents’ mobility before joining the group 176(18.82) 449(48.02) 272(29.09) 38(4.06)

Respondents’ mobility after joining the group 67(7.16) 350(37.39) 454(48.50) 65(6.94)

% change (After) 11.66 10.63 18.60 2.88

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table - 7 : Social Impact on Beneficiaries – Benefit from Government Programmes

Social Impact – Benefit from Govt. Programmes Nil Low Moderate High

Respondents’ benefit from govt programmesincome before joining the group 922(98.50) 13(1.39) 1(0.11)

Respondents’ benefit from govt programmesafter joining the group 0(0.00) 407(43.48) 569(56.52)

% Change (After) (98.50) (42.09) (56.41)

Source: Primary Data Note : Figures in Paranthesis are percentages.

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they are aware of the evils but are helpless in gettingthem curbed either as an individual or in group.56.84 per cent beneficiaries responded in docileway. 56.83 per cent beneficiaries were found to bea bit active in groups. Its concluded that fight againstsocial evils is slowly gaining momentum among theSBLP beneficiaries.

Social Impact - Family Violence

Kabeer’s (1999) analysis of responses by womenloan holders of the SEDP reported that most womenfelt that violence had gone down as a result ofwomen’s access to loans for a number of reasons:the easing of economic stress had reduced one ofthe causes of violence and the fact that women werenow seen to be sharing the responsibility for familyprovisioning with men rather than constituting partof male responsibility. Women also felt that theyhad greater bargaining power within the family andcould (and did) withhold co-operation if husbandsproved extremely abusive. Not even a single SBLPbeneficiaries surveyed has responded that familyviolence is prevalent in her family. But in informaldiscussion it is found that family violence is reducedafter joining SBLP.

Ranking of Social Factors

Till now, the social factors that affected the changeobserved in the beneficiary households or onbeneficiaries has been presented above. Apart frommeasuring the change from individual’s point ofview, the calculations arrived at against each factoras a whole is presented below The results of thesocial factors on SBLP beneficiaries were rankedaccording to their mean scores obtained and theirresults are presented in the table given below.

Table 9 : Ranking of Social Factors

Rank Before Social Factors Rank AfterSBLP SBLP

5 General Awareness 1

3.5 Helping Others 2

7 Benefit from Govt.Programmes 3

1 Exposure 4

2 Mobility 5

3.5 Friendship 6

6 Fight against social evils 7

8 Family Violence 8

Source: Primary Data

The comparison of mean scores of social factorsreveals that general awareness (Ranked 1) ofbeneficiaries has improved after joining SBLP.Helping others, mobility and friendships haveimproved with exposure among the groupbeneficiaries. Benefits from Governmentdevelopmental and welfare programmes is more asa group than as individuals before the SBLP.

Social Impact on SHG beneficiaries in A. P –An Analysis

The identified eight social variables of beneficiarieslike helping others, friendships, fight against socialevils, mobility & exposure were measured on a fivepoint Likert scale ranging from nil to very highbefore and after joining SBLP. To analyse whetherthere is any significant change or difference in socialimpact after joining the SBLP, Paired t- test wasexercised. To analyse the social impact of SBLP onthe beneficiaries, the following hypothesis isformulated.

Table- 8 : Social Impact on Beneficiaries – Fight Against Social Evils

Social Impact - Fight against Social Evils Nil Low Moderate High

Respondents’ fight against social evilsbefore joining the group 169(18.06) 663(70.83) 96(10.26) 8(0.86)

Respondents’ fight against socialevils after joining the group 19(2.03) 281(30.02) 585(62.50) 51(5.45)

% Change (After) 16.03 40.81 52.24 4.59

Source: Primary Data Note : Figures in Paranthesis are percentages.

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H0: There is no significant difference in socialimpact on beneficiaries in Andhra Pradesh afterjoining SBLP

H1: There is significant difference in social impacton beneficiaries in Andhra Pradesh after joiningSBLP

For testing of the hypothesis paired t- test isemployed and the test results are presented in Table-10.

Table -10 : Social impact – Andhra Pradesh -paired t-test results

Pair Social Mean Degrees of Pvariables Score Freedom df Value

Before SBLP 19.1474935 0.000

After SBLP 21.6859

The Paired t-test results from Table -10 indicatethat as the p-value is 0.000 which is less than 0.05,the null hypothesis is rejected and alternativehypothesis is accepted namely there is significantdifference in social impact on beneficiaries and theirhouseholds after joining SBLP. From the results ofthe above table, it can be concluded that SBLP hascreated significant impact on beneficiaries and theirhouseholds.

Social Impact – Region wise

In this part of the analysis, the change observed inthe social factors across the regions is presented. Inthe present study the state of Andhra Pradesh isdivided into four regions namely was Telangana,Rayalaseema, Coastal and North Coastal. Onedistrict from each region is selected and the socialimpact was studied after joining the SBLP. Theidentified eight social variables of beneficiarieslike helping others, friendships, fight against socialevils, mobility,exposure were measured on five pointLikert’s scale ranging from nil to very high forbefore and after joining SBLP.

The following hypothesis was formulated tomeasure the impact.

H0: There is no significant difference in socialimpact across regions of Andhra Pradesh afterjoining SBLP

H1: There is significant difference in social impactacross regions of Andhra Pradesh after joining SBLP

For testing the hypothesis Paired t-test isconducted and the test results are presented inTable-11.

From the analysis of Table 11 it is found that forall regions and districts the p-value is 0.000 whichis less than 0.05 the null hypothesis is rejected andalternative hypothesis is accepted which says thatthere is significant difference in social impact afterjoining SBLP in all the four regions and districts ofAndhra Pradesh.

After observing the mean values it can be concludedthat the social impact is more visible inVizianagaram (North coastal), followed by Guntur(Coastal) district. Anantapur (Rayalaseema) andMahboobnagar (Telangana) showed marginalimprovement in social attributes.

Social Variables – Rural Urban Variance

The primary objective of the study was to measurethe impact of SBLP on the beneficiaries and theirhouseholds. A total of 80 segments were coveredacross 4 regions of Andhra Pradesh. Of these 64segments are rural and 16 segments are urban. Inthis study District and mandal headquarters wereconsidered as urban area. To measure whetherthere is significant difference in the social attributeslike helping others, friendships, fight against socialevils, mobility & exposure were measured on fivepoint Likert scale ranging from nil to very high forbefore and after joining SBLP, in rural and urbanareas of Andhra Pradesh, before and after joiningSBLP, Analysis of Variance (ANOVA) is employedand the following hypothesis is postulated.

H0: There is no significant difference in socialattributes before and after joining SBLP in ruraland urban areas of Andhra Pradesh.

H1: There is significant difference in socialattributes before and after joining SBLP in ruraland urban areas of Andhra Pradesh.

To test the hypothesis ANOVA is employed and theresults are presented in Table-12.

From the analysis of the results presented in Table-12, before joining SBLP the p value (0.997) is morethan the significance level (0.05 ) alternativehypothesis namely there is significant differencein social attributes of rural and urban areas ofAndhra Pradesh. After joining SBLP the p value

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(0.000) is more than the significance level (0.050)therefore the null hypothesis is rejected. It can beconcluded that SBLP has made a significant impacton rural urban differences in terms of social impact.After observing the mean differences it can beconcluded that the rural urban variences isnarrowed after SBLP.The rural areas which arepoorer than their urban counterparts haveresponded move positively than urbanareas.Supporting the theoretical evidence fromreviews of microfinance efforts around the world.Access to microfinance has a positive social impact,and the impact has been often larger for those closerto the poverty line than those far away from poverty.

Conclusions – Social Factors

From the analysis, it can be concluded that there issignificant change in SBLP beneficiaries’ socialfactors. TVs and mobile phones has significantlyimproved their general awareness, they could affordthis after becoming the SBLP beneficiaries. They

are more interested in helping others by draftingthem into the SBLP. Due to constant exposurethrough TVs, they are aware of the subsidies beingoffered by the government and are now demandingthe benefits to be passed on to them instead of beinghigh jacked by middlemen. Exposure, mobility andfriendship has increased and they are venturing outto fight against social evils like arrack etc. Theanalysis has found more changes in social factorsamong the SBLP beneficiaries.

Behavioural Factors

The social change observed in beneficiaries andtheir households has been analysed in the precedingpart of the paper. Here the analysis of change inbeneficiary households from the behavioural pointof view is attempted. To measure the behaviouralimpact of SBLP on beneficiaries households, 5 pointLikert Scale is used to analyse the data ofbeneficiaries for before and after SBLP situations.The 5 attributes are categorized as Nil, Low,Moderate, High and Very High.

Table- 11 : Social impact - Region wise: paired t- test results

Region District Economic Mean Degrees of P valueVariables Value freedom

Coastal Guntur Before 19.6460 277 0.000

After 22.6043

North Coastal Vizianagaram Before 15.4104 172 0.000

After 22.9422

Rayalaseema Anantapur Before 20.6773 281 0.000

After 21.3191

Telangana Mahboobnagar Before 19.7734 202 0.000

After 19.8670

At 5% Level of significance

Table- 12 : Social Impact – Rural - Urban variance

SBLP Mean Degrees of Freedom P Value

Social attributes Before Rural 18.5052 1, 934 0.997

Urban 20.7736

Social attributes After Rural 21.6688 1, 934 0.000

Urban 22.7472

At 5% Level of significance

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The analysis of the data is done by following theseassumptions against each behavioural factor:

Behavioural Impact on SBLP Beneficiaries

By helping a poor family increase their income,micro credit has an immediate and lasting impacton quality of life – the ability to afford food, shelter,education and healthcare. As business incomeincreases, the business is able to expand, and theeffect spreads beyond the family into the localcommunity, through employment and contributionto the local economy. Thus, the benefits of micro-credit development help grow not just businesses,but stronger communities as well. Primary dataanalysis of behavioral factors are presented below.

Behavioural Impact – Business Aptitude

Aptitude is an acquired or natural ability forlearning and proficiency in a specific area ordiscipline. Aptitude is expressed in interest, and isreflected in currentperformance which is expectedto improve over time with training. It is also anintellectual ability of an individual to learnsufficiently so that he can properly perform thebusiness task required on the job. The beneficiariesbusiness aptitude will change due to herd mentalityor self discipline. The business aptitude is almostlinked to business skills. Business aptitude and skillsvirtually go hand in hand. The categorization ofthe business aptitude as per the Likert scale is Nilfor no activity or a housewife , low for starting pettybusiness after becoming SBLP beneficiary, moderatefor small businesses like kirana shop etc., high forration shop, steel or cloth shops etc and multiplebusinesses for very high. The results from thesample are presented in Table-13.

From the analysis of Table -13 it is observed that ofthe 49.15 per cent beneficiaries have acquiredbusiness aptitude and 17.30 per cent beneficiarieshave improved their business aptitude. The per centchange is still low as a good number of beneficiariesare still agricultural labourers and illiterate.Analysing the table above, it is concluded that SBLPplayed a part in nurturing business aptitude inbeneficiaries either through acquired skills orthrough credit and peer affect.

Behavioral Impact – Business Skills

Skill is an ability and capacity acquired throughdeliberate, systematic, and sustained effort tosmoothly and adaptively carryout complexactivitiesor jobfunctions involving ideas (cognitive skills),things (technical skills), and/or people(interpersonal skills). Business skills can be builtthrough training, observation and enthusiasm. Thedata sampled from the beneficiaries is presented inTable-14.

From the analysis of Table-14 it is observed that 50per cent beneficiaries have acquired business skillsafter SBLP. They have started either domesticbusinesses like tailoring, mini dairy etc. 16.45 percent beneficiaries have improved their businessskills either expanding their existing businesses ordiversifying. It can be thus concluded that honingthe business skills of existing beneficiaries doingbusiness prior to SBLP, inculcate business ideas inbeneficiaries is positive. Training on marketing,book keeping etc., also helped them move outsideand do business with confidence.

Behavioural Impact – Banking Habits

Habit is an ability and capacity acquired throughdeliberate, systematic, and sustained effort to

Table - 13 : Behavioural Impact on Beneficiaries – Business Aptitude

Behavioural Impact - Nil Low Moderate HighBusiness Aptitude

Respondents’ Business aptitudebefore joining the group 675(72.12) 117(12.50) 102(10.90) 42(4.49)

Respondents’ Business aptitudeafter joining the group 364(38.89) 266(28.42) 205(21.90) 101(10.79)

% Change (After) 33.23 15.92 11 6.3

Source: Primary Data Note : Figures in Paranthesis are percentages.

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smoothly and adaptively carryout complexactivitiesor jobfunctions involving ideas (cognitive skills),things (technical skills), and/or people(interpersonal skills). Need for banking ariseswhen there is steady income or more than adequatefunds or assets to save. Literacy also plays a role asthe customer has to sign on different papers eitherfor loans, deposits or withdrawals. Illiteracy inhibitsbanking habits. The interpretation of the attributesfor the banking habits is nil for never gone to bank,low for going to bank once in a year withcompulsion, moderate is visiting the bank every halfyear, high is for visting the bank every quarter andvery high is for visiting the bank every month. Thesurvey data is presented in Table-15.

From the analysis of Table-15 it is observed thatSBLP has started inculcate banking habits inbeneficiaries. As many as 78.10 per centbeneficiaries have started banking activities, eventhough this activity may be for loan repayment only.32.80 per cent beneficiaries are already havingbanking habits. Theoretical evidence from Das andKabeer (2004) found that mature beneficiaries weremore likely to know how to undertake banktransactions and to deal with agencies than newbeneficiaries. It is proved in the present study byconcluding that inculcating the banking habit in

beneficiaries is a positive outcome of SBLP. Now,beneficiaries are taking turns to approach the bankfor repayment of loan of their group.

Behavioural Impact – Leadership

Leadership is the ability to lead a group of peopleor an organization. Leadership in an organizationalrole involves (1) establishing a clear vision, (2)sharing that vision with others so that they willfollow willingly, (3) providing the information,knowledge, and methods to realize that vision, and(4) coordinating and balancing the conflictinginterests of all beneficiaries or stakeholders. Aleader comes to the fore front in case of crisis, andis able to think and act in creative ways in difficultsituations.

Interpretation of the data on leadership is nil forpassive beneficiaries, low for active beneficiaries,moderate for second group leaders, high for groupleader, very high for animators etc.

From the anlaysis of Table-16 it is observed that37.28 per cent played a key role in mobilizingfriends and neighbors to join the SBLP and improvetheir lives. 37.28 percent beneficiaries have shownleadership skills and are the second leaders, group

Table -14 : Behavioral Impact on Beneficiaries – Business Skills

Behavioural Impact - Nil Low Moderate HighBusiness Skills

Respondents’ Business skillsbefore joining the group 675(72.12) 114(12.18) 104(11.11) 43(4.60)

Respondents’ Business skillsafter joining the group 364(38.89) 271(28.95) 200(21.37) 105(10.79)

% change (After) 33.23 16.77 10.26 6.19

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table- 15 : Behavioural Impact on Beneficiaries – Banking Habits

Behavioural Impact - Nil Low Moderate HighBanking Habits

Respondents’ banking habitsbefore joining the group 592(63.25) 258(27.56) 72(7.69) 14(1.50)

Respondents’ banking Habitsafter joining the group 73(7.80) 470(50.21) 332(35.47) 61(6.52)

% Change (After) 55.45 22.65 27.78 5.02

Source: Primary Data Note : Figures in Paranthesis are percentages.

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leaders or even animators in their villages or region.It can concluded that SBLP brought out into open,hidden leadership qualities of women and shouldbe seen as a positive impact.

Behavioral Impact – Self Confidence

Self confidence is believing in yourself. The levelof self-confidence and mobility are importantconstituents of empowerment. The SHGhouseholds also showed a significant change in thelevel of confidence while expressing their opinionsin meetings. The interaction with officials hadgreatly increased and was an indicator of greatermobility, confidence,exposure and bettercommunication skills.Theoretical evidenceand theSBLP respondents also reported an increased levelof respect from their spouses after joining the group.The sample collected is presented in Table-17.

From the analysis of Table 17 it is observed thatthere were no beneficiaries who have not shownany self confidence either pre or post SBLP. 39.74per cent beneficiaries have shown adequate levelof self confidence required to sustain in thiscompetitive world. These beneficiaries have selfconfidence at low levels because they believe inthemselves and don’t think much of accomplishingbeyond 39.75 per cent beneficiaries have show

enough self confidence to sustain and improve inthis competitive world. It can be concluded thatSBLP brought out into open, the latent selfconfidence in women and this is a positive impact.Economic freedom also leads to self confidence.

Behavioural Impact – Decision Making

Decision making involves purposeful selection fromamong a set of alternatives in the light of a givenobjective. Decision-making is intertwined with theother functions, such as planning, coordinating, andcontrolling. Decision making also involves makingdecisions that are binding at home.According to thenorms in the South Asian society, especially India,it is usually the head or the male beneficiary(s) ofthe household that take certain key decisions. AsKabeer (1999) explains, it is the increasedparticipation of women in these decision-makingprocesses that will empower women in the truesense.

The SBLP respondents in our study show a greaterinvolvement in decision – making within all familymatters, when compared to the control group. Thehouseholds were also asked some key questions ondecision-making like who takes the actual decisionsregarding running the home, on childrenseducation,on money matters. The responses were tabulated

Table- 16 : Behavioural Impact on Beneficiaries – Leadership

Behavioural Impact - Nil Low Moderate HighLeadership

Respondents’ leadershipbefore joining the group 388(41.45) 297(31.73) 210(22.44) 41(4.38)

Respondents’ leadershipafter joining the group 108(11.54) 228(24.36) 370(39.53) 230(24.57)

% change (After) 29.91 7.37 17.09 20.19

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table -17 : Behavioural Impact on Beneficiaries – Self Confidence

Behavioural Impact - Low Moderate HighSelf Confidence

Respondents’ self confidencebefore joining the group 653(69.76) 256(27.35) 27(2.88)

Respondents’ self confidenceafter joining the group 281(30.02) 605(64.64) 50(5.34)

% Change (After) 39.74 37.29 2.46Source: Primary Data Note : Figures in Paranthesis are percentages.

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as per the attributes of nil for completely dependenton husband, low for having decision making powerfor domestic purchase of food items, moderate forhaving decision making powers on childrenseducation, high for decision making power on allfacets of the home and very high for all facets bothinside and outside the home.

From the analysis of Table-18 it is observed that18.37 per cent beneficiaries remain dependent ontheir husbands for decision making. 45.79 per centhave a say in requirements of food items only, 22.12per cent beneficiaries have a say in matterspertaining to childrens education and 18.06 have asay on all matters. It is concluded that exposure,economic freedom, self confidence all combinetogether to enable a woman to take active decisionsat home and outside.

Behavioural Impact – Childrens Education

Education in the largest sense is any act orexperience that has a formative effect on the mind,character, or physical ability of an individual.Education is the process by which societydeliberately transmits its accumulated knowledge,skills, and values from one generation to another.

Literacy plays an important role in the well-beingof the society, providing education to children thefuture citizens leading to the growth of society andthe country.

From Table-19 it is found that there is no differencein the levels of children’s education pre and postSBLP because the beneficiaries are in productiveage group and their children are in the process oflearning or already crossed the learning age. Loansto women, however, had positive and significanteffects on children’s status with a strong effect forgirls than boys. While children’s education isfrequently found to improve with access tomicrofinance, the findings on gender disparities arenot consistent. Some reinforce the importance ofloans to women for both general but also gender –equalizing results. Khandeker (1999), for instance,found that a 1 per cent increase in loans to womenborrowers with the Grameen Bank increased theprobability of school enrolment by 1.9 per cent forgirls and 2.4 per cent for boys. While a one per centincrease in credit to male loan holders increasedboy’s enrolment by 3.1 per cent but had no effecton girls. Beneficiarieship in the SHG programme

Table- 18 : Behavioural Impact on Beneficiaries – Decision Making

Behavioural Impact - Nil Low Moderate HighDecision Making

Respondents’ decisionmaking before joining the group 202(21.58) 448(47.86) 259(27.67) 27(2.88)

Respondents’ decisionmaking after joining the group 30(3.21) 244(26.07) 466(49.79) 196(20.94)

% Change (After) 18.37 45.79 22.12 18.06

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table - 19 : Behavioural Impact on Beneficiaries – Children Education

Behavioural Impact - Nil Low Moderate HighChildren Education

Respondents’ children Educationbefore joining the group 282(30.13) 413(44.12) 155(16.56) 86(9.19)

Respondents’ children Educationafter joining the group 282(30.13) 413(44.12) 155(16.56) 86(9.19)

% Change (After) 0.00 0.00 0.00 0.00

Source: Primary Data Note : Figures in Paranthesis are percentages.

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has a positive effect on expenditures on children’sschooling as well. But during informal discussionit is learnt that beneficiaries are spending internalSHG loan and Bank loan on childrens educationsupporting theoretical evidence.

Behavioural Impact – Motivation

Motivation is the inner striving of individuals thatdirects behavior. Unsatisfied desires create themotivation to act with purposeful behavior toachieve gratification.

From the analysis of Table above 18.91 per centbeneficiaries responded that prior to SBLP they didnot have any motivation to do things and they wereleading their life lethargically. Post SBLP this figurehas come down to 5.98 per cent. 46.90 per centbeneficiaries responded that they had somemotivation to do things but could not because oflack of opportunities or money. This figure hascome down to 26.71 per cent. 30.24 per centbeneficiaries responded that they had enoughmotivation to do things and are doing the same preSBLP and this figure stood at 30.24 per cent. PostSBLP, this figure has gone up to 58.97 per cent.2.67 per cent beneficiaries had shown highmotivation levels prior to SBLP and this increased

to 6.84 per cent post SBLP. 1.28 per cent have shownvery high motivation levels and this has increasedmarginally to 1.50 per cent post SBLP.

Behavioural Impact – Health

Health is a state of complete physical, mental, andsocial well-being and not merely the absence ofdisease or infirmity. Health care also includes theirbackground, lifestyle, and economic and socialconditions; these are referred to as determinants ofhealth.

From the analysis of Table-21 no beneficiaries havebeen found with some form of continuous healthcare. Access to bare needs of health care is observedby 44.34 per cent and this has come down to 33.01per cent due to increased awareness. Half thebeneficiaries surveyed have responded that theyhave adequate access to health care at 52.56 percent and this increased marginally to 57.05 per cent.1.82 per cent beneficiaries responded that they havehigh access to health care and this increased to 8.65per cent.

Behavioural Impact – Nutrition

Nutrition from a balanced diet promotes health. Nobeneficiaries have been found to be in need ofnutritious food.

Table- 20 : Behavioural Impact on Beneficiaries – Motivation

Behavioural Impact – Nil Low Moderate HighMotivation

Respondents’ motivationbefore joining the group 177(18.91) 439(46.90) 283(30.24) 37(3.95)

Respondents’ motivationafter joining the group 56(5.98) 250(26.71) 552(58.97) 78(8.34)

12.93 20.19 28.73 4.39

Source: Primary Data Note : Figures in Paranthesis are percentages.

Table - 21 : Behavioural Impact on Beneficiaries – Health

Social Impact – Health Low Moderate High

Respondents’ Health before joining the group 415(44.34) 492(52.56) 29(3.10)

Respondents’ Health after joining the group 309(33.01) 534(57.05) 93(9.93)

11.33 4.49 6.83

Source: Primary Data Note : Figures in Paranthesis are percentages.

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Analysis of Table-22 identified that 44.34 per centhad access to bare needs of nutritionand this hascome down to 33.01 per cent due to increasedawareness. Half the beneficiaries 52.56 per centsurveyed have responded that they have adequateaccess to nutritious food and this increasedmarginally to 57.05 per cent. 1.82 per centbeneficiaries responded that they have high accessto nutritious food and this increased to 8.65 percent.

Ranking of Behavioural Factors

The behavioral attributes of SBLP beneficiarieswere ranked according to their mean scores andtheir results are presented in the table given below.

Table -23 : Ranking of Behavioural Factors

Rank Before Behavioural Rank AfterSBLP Factors SBLP

5 Decision Making 11.5 Health 2.51.5 Nutrition 2.57 Leadership 43 Self Confidence 54 Motivation 610 Banking Habits 76 Children Education 88 Business Aptitude 99 Business Skills 10

Source: Primary data

The comparision of Mean scores of behavioralfactors reveal that decision making (Ranked 1) ofbeneficiaries improved after joining SBLP. Healthand nutrition has improved along with exposure.Banking awareness and banking habits have been

inculcated among the beneficiaries after joining theprogram.

Behavioral Impact on beneficiaries in A. P - AAnalysis

The identified ten factors of behavioural factors onbeneficiaries like, health, nutrition, motivation, selfconfidence, leadership were measured on a fivepoint Likert scale ranging from nil to very high forbefore and after joining SBLP. To measure whetherthere is any significant change / difference inbehavioral impact after joining the SBLP, paired t-test was exercised. To understand the behavioralimpact objective on the beneficiaries, the followinghypothesis was formulated.

H0: There is no significant difference in behavioralimpact on beneficiaries in Andhra Pradesh afterjoining SBLP

H1: There is significant difference in behavioralimpact on beneficiaries in Andhra Pradesh afterjoining SBLP

For testing of the hypothesis paired t- test isemployed and the test results are presented in Table-24

The paired t- test results from Table-24 states thatas the P value is 0.000 which is less than 0.05, thenull hypothesis is rejected and alternativehypothesis that there is significant difference inbehavioral impact on beneficiaries and theirhouseholds after joining SBLP. It can be concludedthat SBLP has created a significant behavioralimpact on beneficiaries and their households.

Behavioral Impact –Region wise

In the present study the state of Andhra Pradesh is

Table - 22 : Behavioural impact on Beneficiaries – Nutrition

Social Impact – Nutrition Low Moderate High

Respondents’ nutritionbefore joining the group 415(44.34) 492(52.56) 29(3.10)

Respondents’ nutritionafter joining the group 309(33.01) 534(57.05) 81(9.93)

% Change (After) 11.33 4.49 6.83

Source: Primary Data Note : Figures in Paranthesis are percentages.

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divided into four regions namely, Telangana,Rayalaseema, Coastal and North Coastal. Onedistrict from each region was selected and theeconomic impact was studied after joining the SBLP.The identified ten factors of behavioural impact onbeneficiaries like, health, nutrition, motivation, selfconfidence, leadership were measured on five pointLikert scale ranging from nil to very high for beforeand after joining SBLP. The following hypothesisis formulated to measure the impact.

H0: There is no significant difference in behavioralimpact across regions of Andhra Pradesh afterjoining SBLP

H1: There is significant difference in behavioralimpact across regions of Andhra Pradesh afterjoining SBLP

For testing the hypothesis paired t-test is conductedand the test results are presented in Table-25.

From the analysis of above Table it is found thatfor all regions and districts the p-value is (0.000)is less than (0.05) the null hypothesis is rejectedand alternative hypothesis that there is significantdifference in behavioral impact after joining SBLPin all the four regions and districts of AndhraPradesh is accepted.

After observing the mean values it can be concludedthat the behavioral impact is more visible inVizianagaram (North coastal) and Guntur (Coastal)districts.

Behavioral Variables – Rural Urban Variance

The primary objective of the study is to measurethe impact of SBLP on the beneficiaries and theirhouseholds. A total of 80 segments were coveredacross 4 regions of Andhra Pradesh. Of these64segments are rural and 16 segments are urban.District and Mandalheadquarters were consideredas urban area. To measure whether there is asignificant difference in the behavioral attributeslike, health, nutrition, motivation, self confidence,leadership were identified measured on five pointLikert scale ranging from nil to very high beforeand after joining SBLP. Analysis of Variance(ANOVA) is employed and the followinghypothesis was formulated.

H0 : There is no significant difference in behavioralattributes before and after joining SBLP in ruraland urban areas of Andhra Pradesh.

H1 : There is significant difference in economicbehavioral attributes before and after joining SBLPin rural and urban areas of Andhra Pradesh.

Table- 24 : Behavioral impact- Paired t-test results

Pair Behavioral variables Mean Score Degrees of Freedom df P Value

Before SBLP 17.3953935 0.000

After SBLP 22.9145

At 5% Level of significance

Table- 25 : Behavioral impact- Region wise: Paired t test results

Region District Behavioral Mean Value Degrees of P valueVariables Freedom

Coastal Guntur Before 16.3417 277 0.000

After 23.0108

North Coastal Vizianagaram Before 14.0578 172 0.000

After 23.1676

Rayalaseema Anantapur Before 19.8440 281 0.000

After 23.7908

Telangana Mahboobnagar Before 18.2808 202 0.000

After 21.3498

At 5% Level of significance

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To test the hypothesis ANOVA is employed and theresults are presented in Table-26.

From the analysis of the results presented in Table-26 before joining SBLP the p- value 0.000 is lessthan 0.05 alternative hypothesis namely there issignificant difference in behavioral attributes ofrural and urban areas of Andhra Pradesh. Afterjoining SBLP the p value 0.000 is less than 0.05 thenull hypothesis is rejected. It can be concluded thatSBLP has made significant impact on behavioralfactors. The urban areas and rural areas are almostequally benefited by SBLP.

Conclusion

Based on the analysis it can be concluded that thereis significant behavioral change among the SBLPbeneficiaries .Their self confidence has improvedsignificantly. They are motivated to come out andparticipate in public with frequent interactionamong group beneficiaries and the local peer groupsand friends. Hence general awareness, health andnutrition has improved a lot. The credit availabilityand peer effect has improved their business aptitudeand business skill considerably. Banking habit hasbeen inculcated and leadership traits are polished.The analysis has indicate more of behavioralchanges among the SBLP beneficiaries. With morefocus and continuous follow up the intendedchanges can be easily achieved with SBLP.

References

1. APMAS. (2003). SHG Movement in Adilabad,Cuddapah and Visakhapatnam Districts.Hyderabad: Mahila Abhivvruddhi Society, A.P.

2. Awasthi P.K, Deepak Rathi and Vimla Sahu,(2001), “Working and Impact of Self-HelpGroups on Economic Status of Women inWatershed Area of Madhya Pradesh”,IndianJournal of Agriculture Economics, Vol.56,No.3, July-September, Pp.475.

3. Dash. A and N. Kabeer (2004), From SocialExclusion to Citizenship: Analysing the impactof CYSD SHG Strategy in Koraput,Orissa.

4. Dwarakanath, H.D. (2002), “Rural credit andwomen Self-Help Group. A profile of RangaReddy District in Andhra Pradesh”,Kurukshetra, Vol51, No.1, November, Pp.9-15.

5. Khandekar S R (1999), Fighting Poverty withMicro credit: Experience in Bagladesh,OxfordUniversity Press, New York.

6. Lazar and Kogila (2009) A study and theperformance of the self help groups inTamilnadu and Pondicherry microfinanceconference volume puducherry pp 3-17

7. Mahapatra and Sahoo (2008) Impact ofmicrofinance on rural poor – an empiricalinvestigation, microfinance conferencevolume, Puducherry pp 169

8. Manimekhalai N (2004) Impact Of VariousForms of Micro Financing on Women, Phdthesis, Bharati DasanUniversity,Tiruchirapalli, Tamilnadu.

9. Microfinance Status Report 2008-09 –NABARD, Mumbai

10. Microfinance Status Report 2009-10 –NABARD, Mumbai

Table- 26 : Behavioural Impact – Rural- Urban Variance

SBLP Mean Degrees of P ValueFreedom

Behavioral factors Before Rural 16.4143 1, 934 0.000

Urban 19.8792

Behavioral factors After Rural 22.2340 1, 934 0.000

Urban 24.6377

At 5% Level of significance

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11. Microfinance Status Report 2010-11 –NABARD, Mumbai

12. Microfinance Status Report 2011-12 –NABARD, Mumbai

13. Moyle, Dollard & Biswas (2006), ‘Personal andEconomic empowerment in Rural Indianwomen: A Self-help Group Approach’,International Journal of Rural Management,2, Sage Publications.

14. Murthy, R.K, K. Raju and A.Kamath, (1999)Towards Womens Empowerment and PovertyReduction, Lessons from the ParticipatoryImpact Assessment of South Asian PovertyAlleviation Programme in Andhra Pradesh,India.

15. NCAER(2008), Impact And Sustainability OfSHG Bank Linkage Programme, New Delhi.

16. Prem Singh Dahiya, N.K. Pandey andAnshuman Karol, (2001), “Socio-Economic

Evaluation of Self-Help Groups in solanDistrict of Himachal Pradesh: Impact, Issuesand Policy Implications”, Indian Journal ofAgriculture Economics, Vol.56, No.3, July-September, Pp.48

17. Rajasekhar.D, (2002), “Economic Programmesand Poverty Reduction: NGO Experiencesform Tamil Nadu”, Economic and PoliticalWeekly, Vol.37, No.29, July-20, Pp.3063-3068.Cxv

18. SIDBI (2008), Assessing Development Impactof Micro Finance Programmes, Lucknow.

19. Tabassum Sultana (2008) A study on urbanpoverty alleviation through shg bank linkageprogramme Hyderabad microfinanceconference volume puducherry pp 111-

20. Todd. H (2001), Paths Out of Poverty,TheImpact of SHARE Microfin Ltd in AndhraPradesh.

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1.0 Introduction

Retail sector is promoting the sale of goods andservices for individuals or businesses enterprisesand is becoming an end to end supplier across theworld to the end user has come of age world over.The retail sector is booming in India consequent tothe liberalization. The rise of the young workingpopulation, with hefty pay- packages, and morenuclear families in urban areas, a rise in the numberof working women, more disposable income andcustomer aspiration, western influences and growthin expenditure for luxury items have been essentialreasons for phenomenal pace. According to theGlobal Retail Development Index 2012, India ranksfifth among the top 30 emerging markets for retail.The recent announcement by the Indiangovernment with Foreign Direct Investment (FDI)in retail, especially allowing 100% FDI in singlebrands and multi-brand FDI has created positivesentiments in the retail sector. (Aaditi Isaacreports)1.

1.1 Growth Potential

The key growth areas include the urban, luxurysegment on one end of the spectrum and servingthe rural sector on the other. In addition,government policy encouraging FDI in the segmenthas resulted in a plethora of international retailerskeen on entering the market; American retail giantWal-Mart has tied-up with Bharti Enterprises andglobal coffee giant Starbucks’ has tied up with PVRLimited. In addition, Carrefour, Boots and otherretail giants are also expected to come in. With somuch action, it is natural that there is a huge scope

RETAIL SERVICE MEASUREMENT: A REVIEW OF RESEARCHLITERATURE

K. Jayarama Reddy*

Abstract

Retailing is one of the emerging businesses in the service sector, which offers goods and services, these goodsand services in this sector need utmost concern for quality. This paper explains the tracking of services in theretail service sector through a review of research, while drawing future research directions.

Keywords: Service Quality, Retail Service Quality Scale, Customer Satisfaction, Retail outlets, Users’perception.

* Assistant Professor, Siva Sivani Institute of Management, Secunderabad – 500014. A.P. (M): 09393332651, Email:kjr59@rediffmail.com

for employment opportunities, and experts estimatethat the sector will generate employment for2.5million people in 2010. The top retail companies inIndia include the Raheja Group, Reliance Retail,Tata Trent, Future Group, RPG Retail, and EbonyRetail Holdings.

All these are the factors for the growth in Indianorganized retail sector. The retail sector is growingat a phenomenal pace leading to job opportunitiesin different areas across the country.

1.2 Problems of Retail Business today

The organised retail sector in India has beenwitnessing various issues like global economicslowdown, competition from the unorganisedsector, the retail sector not being recognized as anindustry, high real-estate costs, lack of basicinfrastructure, supply-chain inefficiencies,challenges with respect to human resources andmargin pressure.

In the present day of retailing, service quality hasbecome the basic tool for retailers to createcompetitive advantage and to enhance shoppingexperience. The quality of services significantlyaffects customer satisfaction, company revenues,cross selling and also repeat purchase behavior(Berry, 1986; Hummel and Savit, 1988; Reichheldand Sasser, 1990). The fast pace of the Indian retailindustry presents many companies with a host ofdaily challenges. In today’s competitiveenvironment and with the growing importance ofservices, delivering high quality services has becomethe basic retailing strategy.

Service quality is a complex topic, it is an important

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approach to manage the business in order to ensurefull satisfaction of the customers which will lead tothe increase in competitiveness and effectivenessof the service sector. Customer service is a key factorin success of retail outlets. In the present scenarioretail outlets must win the customer’s trust byconsistently meeting or exceeding expectations. Thedisparity between expectation and perception is thekey factor to determine the customer assessmentof Service quality and customer satisfaction, is veryimportant in retail outlets of India.

1.3 Retail Sector in India

According to Suja Nayar (2006) in her book “RetailManagement”, post liberalization era saw retailindustry undergoing a revolutionary change. Indiais a land of retail democracy- hundreds of thousandsof weekly haats and bazaars are located across thelength and breadth of our country by people’s ownself organizational capacities. Our street bazaars are– lively, vibrant, and safe and the source oflivelihood for millions. India has the highest shopdensity in the world, with 11 outlets per 1000people. Retail in India has started with the conceptof weekly markets, where all the traders gather atone big place to sell their products every week. Thepeople come to these weekly markets to buy thehousehold items. Village fairs and melas were alsocommon as it has more of an entertainment value.Once the people started getting busier with theirlives, there emerged the mom and pop shops in theneighborhood. After India became independent,came into existence the system of Publicdistribution of foods through the ration shops,where food grains, sugar and oil for the dailyconsumption were distributed at subsidized ratesthrough the government ration shops.

The modern corporate retail formats are of theexclusive brand outlets, hypermarkets,supermarkets, departmental stores and shoppingmalls. But still the Indian consumer depends onthe self-organized retail shops for their daily needs.(Navdanya Research Foundation, 2011)34. IndianRetail Industry is a derivative of the growingeconomy, changing demographics and preferencesof the Indian consumers. In the 1990’s all the largergrocery retailers have introduced structural changesin the business, with the specific goal of acquiringcustomer attention. The use of structural changes

has become so eminent that retailers started offeringrewards to this customers. Retailing industry arebecoming increasingly important, especially fordeveloped economies. Within that, the shopping lessthan one umbrella concept continues to emerge asa popular concept. The Indian retail industry isdivided into two sectors- organized andunorganized. Suja Nayar (2006).

1.3.1 Organised Retail Sector

Organised retail sector refers to the sectorsundertaken by licensed retailers, that is, those whoare registered for sales tax, income tax, etc. Theseinclude the corporate retail formats of the exclusivebrand outlets, hypermarkets, supermarkets,departmental stores and shopping malls.

1.3.2 Unorganized Retail Sector

Unorganised on the other hand, refers to thetraditional formats of low-cost retailing, forexample, hand cart and pavement vendors, mobilevendors, the local kirana shops, owner mannedgeneral stores, paan / beedi shops, conveniencestores, hardware shop at the corner of your streetselling everything from bathroom fittings to paintsand small construction tools; or the slightly moreorganized medical store and a host of other smallretail businesses in apparel, electronics, food etc.Gupta, Dubey and Patani (2012)14.

1.4 Importance of Retail Service Quality

The importance of service quality has beeninfluenced greatly by the changing nature of theworld economies and the customers changingneeds, tastes and preferences. The move has alsobeen fueled by the growth in consumerism, worldtravel and the competitive business environments.Perez et.al., (2007)33 observed that service qualityhas become a critical factor in enabling firms toachieve a differential advantage over theircompetitors and thus, it makes a significantcontribution to profitability and productivity.Indeed, service quality has become a key conceptin a competitive corporate strategy (Gronroos,2001)13. Zeithaml, Parasuraman and Berry (1988)39,identified two major payoffs of quality; Qualitycreates true customers and that it leads toefficiencies. Excellent service pays off because itcreates true customers who are like annuities. They

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keep pumping revenues into an organization.Quality improvements lead to operationalefficiencies beyond those associated with scaleeconomies. This is because, quality improvements,(both in products and services) lowers defects,service errors and customer complaints. Thusservice quality does pay. Customer servicesatisfaction depends on the quality of servicecustomers’ receive and how well this matches theirexpectations. Realizing the rising importance ofquality service and customer care, many retailersare improving their service strategies based on theway the concept of quality of services is adopted.

1.5 Concepts of Retail Service Quality

A concept of Service Quality has emerged tomeasure the customer satisfaction with theirperception in order to meet the customerexpectation. They are SERVQUAL, SERVPERFAND RSQS. It gives an understanding about thedevelopment of the service sector.

1.5.1 SERVQUAL

SERVQUAL (Parasuraman et. al., 1988)31 hasintroduced the mainstream method of servicequality and its subsequent assessment. SERVQUALwas developed by measuring the service quality indiverse setting, including an appliance repair andmaintenance firm, several retail banks, a longdistance telephone provider, a security broker andcredit card companies as the authors intended todevelop and design a scale which could be used formeasuring service quality across serviceenvironments. The bottom line of such methoddistinct allows for understanding gaps, but not theactual performance related issues.

1.5.2 SERVPERF

Conceptually, this gap assessment assumes that thestatement of desired attribute levels is the yardsticka consumer uses to assess store service performance,Carman (1990). Schnieder and White (2004)provide a list of several other yardsticks can be usedby a consumer to evaluate store service delivery.Even empirically, several researchers find theperformance perceptions to be sufficient inassessing service quality as compared to the gap(Carman, 1990; Angur, Natarajan and Jahera,1999). This resulted in the adoption of the

SERVPERF instrument instead of the gap basedmeasure of SERVQUAL. According to Cronin andTaylor (1992) expressed SERVPERF is theperformance battery of SERVQUAL.

For retail services, ServQUAL is not adequate,because it can be applied to all the sectors, whichincludes banking, transport, airport, educationalinstitutes, etc. So, for the Retail Services, thereshould be a separate scale to measure the servicequality gaps and meet the expectations of thecustomers. Retail Service Quality Scale (RSQS) willbe the effective tool to measure the gaps in theservices. Dabholkar, Thorpe and Rentz (1996)8.

1.5.3 Retail Service Quality Scale (RSQS)

Realising the need for investigating the dimensionsof service quality in retail stores and developed ascale to measure retail service quality, Dabholkar,Thorpe and Rentz (1996)8 developed the RetailService Quality Scale (RSQS) for measuring servicequality in the retail setup (Table - 1) to overcomethe constraint in service quality and improve thequality of service to the customers in retail sector.RSQS is a performance based measure of servicequality with regard to the retail context only.

Service quality is defined as customers’ perceptionof how well a service meets or exceeds theirexpectations (Czepiel, 19907;Zeithaml., 199041). Intoday’s competitive environment, organizationsshould earn the customer’s trust by consistentlymeeting customer expectations. The gap betweenexpectation and perception is the majordetermining factor in a customer’s assessment ofservice quality. One of the most important customerservice skills that companies should develop is theability to understand and effectively respond to thecustomer’s needs and concerns. In the retailcontext, perceptions of service encountersaccumulate over time and a customer’s relationshipwith an organization are a continuation ofexchanges or interactions both past and presentCzepiel (1990) 7. As retailers can create such effects,service quality plays a significant strategic role increating quality perceptions. Duy Nhat (2007)27.

According to Seth and Deshmukh (2005)28

conceptual models in service quality enablemanagement to identify quality problems and thushelp in planning for the launch of a quality

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improvement program thereby improving theefficiency, profitability and overall performance ofthe retail store.

Thus, the measurement tools also should beadjusted in evaluating the perception of the servicequality by customers. These demands for acontinuous effort to learn, validate and modify theexisting concepts of service quality were interestto trace in the development of the models in theliterature. Different reviews on the previousresearches different measurement tools wereexplained and applied to measure the service qualityhowever the most modern and appropriate RetailService Quality Scale (RSQS) was not experimentedat the Scandinavian retail stores. Considering theimportance of the evaluation of the differentdimensions of retail service quality andmeasurement of those dimensions in order todeliver high value to the consumer, it was deemednecessary to conduct future research to gain anunderstanding of the overall perception of retailservice quality by customers using RSQS. Thefollowing Table-1 explains about the descriptionsof the dimensions and definitions.

1.6 Literature Review on Retail ServiceQuality Scale (RSQS)

Service literature, comprising empirical studiesmostly undertaken in the advanced Westernsocieties, tends to view service quality as a majorconstruct in explaining customer satisfaction(Omachonu et. al., 200829; Jamal and Naser, 200216;Ueltschy et. al., 200737; Lee et. al., 200022; Voss et.al., 2004)38.

This article explains about the RSQS applicationsin various retail sectors on separate dimensions.They are: physical aspects, reliability, personalinteraction, problem solving and policy, are highlysuited for measuring retail service quality inclothing stores, banking sectors, transport, etc. alsoproveing that the instrument is applicable in theMalaysian setting. Leen, Jasmine Yeap Ai andRamayah, T. (2011)23

Retail service quality is furthermore associated withfuture consumption behaviour in terms of thecustomers’ intention to visit, purchase andrecommend the stores to others.

Boshoff and Terblanche (1997)5, in replication ofDabholkar study found highly encouraging resultsfor the RSQS applicability in the context ofdepartment stores, specialty stores andhypermarkets in South Africa. Mehta, Lalwani andHan (2000)24 found the RSQS five dimensionalstructure appropriate for measuring the servicequality perceptions of supermarket consumers inSingapore. Kim and Jin (2001)19 found that theRSQS model is useful for measuring service qualityof discount stores across two different culturalcontexts of USA and South Korea.

Brent Mckenzie (2006)24 found in his research thatwithin a transition economy such as Estonia, retailservice quality is best represented by the threefactors of physical aspects, personal interaction andproblem solving in contrast to the five factor modelsupported by Dabholkar et. al., (1996)8.

Service quality in retailing is different from otherservice environments (Finn and Lamb, 199111;

Table-1: Retail Service Quality Scale (RSQS)

S.No. Dimensions Definitions

1. Physical Aspects Retail store appearance and store layout

2. Reliability Retailers keep their promises and do the right things

3. Personal Interaction Retail store personnel are courteous, helpful and inspireconfidence in customers

4. Problem Solving Retail store personnel are capable to handle returns andexchanges, customers’ problems and complaints

5. Policy Retail store’s policy on merchandise quality, parking, operationhours and credit cards

Source: Dabholkar, Thorpe and Rentz8. A Measure of Service Quality for Retail Stores: Scale Development andValidation”, Journal of the Academy of Marketing Science, Winter, 1996.

Gagliano and Hathcote, 199412). Since the retailservice is unique in nature, measuring retail servicequality will have to be different from theconventional service quality measurement. TheRSQS has a five dimensional structure of whichthree dimensions comprise of two sub-dimensionseach. Dabholkar, Thorpe and Rentz (1996)8 testedthe RSQS with Department Store customers andthe scale was found to possess strong validity andreliability, the scale was suited for studying retailbusinesses that offer a mix of services and goods.The instrument could serve as a diagnostic tool thatwould allow retailers to determine service areas thatwere weak and needed attention. Since theinstrument is relatively recent, only few studies onmeasuring service quality was conducted in retailsector depicted in Western and Indian Context asshown in Table - 2 & 3.

From the above studies, RSQS was used in theIndian Retail Industry since 2005 by the variousresearchers. Some of the researchers felt that, RSQSwas not up to the mark with reference to thedimensions,sub-dimensions level & designing of thequestionnaire. Some of the authors felt that, RSQSeffectively works in Indian context and explainsthe measurement of the service quality gaps in thevarious Retail outlets.

1.7 Indian Retail Industry

The India Retail Industry is the largest among allthe industries, accounting for over 10 per cent ofthe countrys’ GDP and around 8 per cent of theemployment. The Retail Industry in India has comeforth as one of the most dynamic and fast pacedindustries with several players entering the market.But all of them have not yet tasted success becauseof the heavy initial investments that are required

to break even with other companies and competewith them. The India Retail Industry is graduallyinching its way towards becoming the next boomingindustry. The total concept and idea of shoppinghas undergone an attention drawing change interms of format and consumer buying behavior,ushering in a revolution in shopping in India.Modern retailing has entered into the Retail marketin India as is observed in the form of bustlingshopping centers, multi-storied malls and the hugecomplexes that offer shopping, entertainment andfood all under one roof. A large young workingpopulation with medium age of 24 years, nuclear

families in urban areas, along with increasingworking women population and emergingopportunities in the services sector are going to bethe key factors in the growth of the organized Retailsector in India. The growth pattern in organizedretailing and in the consumption made by theIndian population will follow a rising graph helpingthe newer businessmen to enter the India RetailIndustry. In India, the vast middle class segmentand the untapped retail industry are the keyattractive forces for global retail giants wanting toenter into newer markets, which in turn will helpthe Indian Retail Industry to grow faster. Indian

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retail is expected to grow 25 percent annually.Modern retail in India could be worth US$ 175-200 billion by 2016.The Food Retail Industry inIndia dominates the shopping basket. The Mobilephone Retail Industry in India is already a US$ 16.7billion business, growing at over 20 per cent peryear. The future of the Indian Retail Industry lookspromising with the growth of the market, with thegovernment policies becoming more favorable andthe emerging technologies facilitating operations.

Retailers provide a combination of goods andservices to their customers. Retailing has beencharacterised as a service with high degree of labourintensity and low degree of interaction andcustomization Tan and Mehta (1994)36. Examplesof retailers in Kenya include the supermarkets,kiosks (very small convenience stores), hawkers,butcheries, fuel stations, bookshops, hotels,chemists, banks, ordinary shops, auto dealers, clothstores, jewelry stores, gift shops, shoe stores,furniture stores, music stores and hair salons amongothers Kagira and Kimani (2010)18. While thetraditional marketing emphaseson product quality(goods), growing research in service quality hasmade many retailers to understand the importanceof service quality in their retail offerings Bougoureand Lee (2009)6. A positive customer perception ofservice quality can greatly influence a firm’sperformance and competitiveness.

Anselmsson, Johansson and Persson (2007)3

suggested that Service has traditionally been aforceful competitive tool in grocery retailing. Theoverall aim of this study was to enhance theunderstanding of customer perceived service qualitywith reference to grocery retailing. The result showsthat the traditional grocery store performs betteron all service attributes, specifically on assortmentissues. Durvasula (2010)9examines the servicequality perceptions of consumers towards retailersin Singapore. He first examines the dimensionalityand reliability of this scale. Subsequently, analysisby various demographic groups revealed significantgaps in service quality; the gaps in quality weremuch higher for some service quality dimensionsthan for others.

Services are increasingly becoming a larger portionof many organisations’ regionally, nationally, andglobally and are considered as a tool for revenue

streams. Today’s knowledge of intensive servicesin businesses require reliable methods ofmeasurement, assessment, and improvementSpohrer and Maglio (2008)35. Service quality isdetermined by calculating the difference betweentwo scores where better service quality results in asmaller gap Landrum, et. al., (2008)21.Johneston(1997)17did comprehensive empirical experimentson service quality dimensions offered byParasuraman, et. al., (1985 32 & 1988)31 in tenservice organizations in England. At first, theypresented a list of 12 factors, and then after furtherresearch, they offered a list of 18 factors related tocustomer satisfaction and shows it as a key factorin creating customer’s willingness for futurepurchase. Furthermore, the satisfied customers willprobably talk to others about their good experiences.Although satisfaction has been defined as thedifference between expectation and performance,but there are differences between quality andsatisfaction. For example, Parasuraman et. al.,(1991)30 say that satisfaction is a decision made afterexperience while quality is not the same.

The other studies conducted also found encouragingresults of RSQS, such as Sanjeev Varshney and AmitGoyal (2006), Nallamalli, Udaya Bhaskar and RajaShekhar (2011)36, Arun Kumar, Manjunath andShivashankar (2012)4 and Abdus Samad andRavichandran2 (2012).

Nallamalli, Udaya Bhaskar and Raja Shekhar(2011)26 studied the impact of Service Quality onApparel Retail Customer Satisfaction and alsoidentified the critical factors of service quality fromcustomer’s perspective. The sample consists of 250respondents form the Metropolitan City Hyderabadand administered a structured questionnaire onRSQS, for data collection. The study identifies thecritical factors of Apparel Retail Service Quality andevaluates the impact of service quality on retailcustomer satisfaction.

Arun Kumar, Manjunath and Shivashankar (2012)4

conducted a survey on five dimensions namelypersonal interaction, physical appearance, problemsolving, policy and convenience were consideredfor their study. The data was collected throughstructured questionnaire from 200 samples inMandy district of Karnataka by using five pointLikert scale. They conducted multiple linear

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regression analysis to know the impact of servicequality on customer satisfaction&it was observedthat there is a strong relationship between servicequality and customer satisfaction. The result showson all the dimensions such as personal interaction,physical appearance, problem solving, policy andconvenience have the significance value less than.05 (p-.05). It is also found from the coefficient table,that personal interaction of discount stores is (â:.547and significance p:.000). Hence there is asignificance difference between personalinteraction and customer satisfaction. In terms ofpolicy the â value was .664 and the p value was.000, therefore it shows that policy also positivelyinfluencesthe overall satisfaction of discount stores.The next dimension was physical appearance withâ value was -.203 and the p value was .000, and itshows that this factor also have positive influenceand overall satisfaction. With regard to the problemsolving and convenience the â value was .114, .170and the p value was .000, which shows that thesetwo factors also have positive influence and overallsatisfaction.

Sanjeev Varshney and Amit Goyal (2006),Nallamalli, Udaya Bhaskar and Raja Shekhar(2011)26, Kumar and Barani (2012)20 and AbdusSamad and Ravichandran2 (2012) found thatmajority of the Service Quality aspects had apositive impact on the overall service quality. Theresults were fruitful and the study helps to improvethe service quality in retail outlets.

It can be derived from the research that, ‘RetailService Quality Scale’ helps the retailers to detecta) most required areas within the store b) and focusits resources on improving the service quality. SomeRetailers may like to apply ‘multi-dimensionalservice quality scale’, which was developed and usedglobally as well as in the Indian retail setting. Sincethe organized retail stores are growing in India, thefocus should also be on finding the customerpreferences towards store, products and employeeinvolvement.

1.8 Limitations and Implications of theStudy

Through the RSQS scale application in differentcountries, its applicability has clear limitations. Inthe light of the many limitations that are inherent

in the application and administration of RSQS, itwould be right to conclude that different retailsettings are perceived to provide different sets ofservices to the customers. Hence, it would beappropriate to suggest that the RSQS may beadapted, modified and validated in the context ofthe specific retail setting being studied. Recentresearch suggests that culture may play a significantrole in determining how customers perceive servicequality.

1.9 Gaps in RSQS

The following gaps were found.

1. RSQS has been known for its adaptability inthe western context, wherein the users aredistinctly different in terms of theirpersonality, assertiveness and theirpreferences.

2. There has been only one study whichattempted at testing the adaptability of RSQSin the Indian context Kaul (2005)15. This studyclearly suggested that the dimensions of RSQSare not stable in Indian context.

3. RSQstested any comprehension modelsdelineating the variables in the models toclearly spell the relationships and theirdirections.

4. There is a gap in explaining the relationbetween RSQ and the ultimate outcomevariable customers satisfaction. Suchrelationship is not adequately studied inprevious literatures.

1.10 Future Research

Future research needs to be done in order to studythe retail environment in India with deeper focuson quality of services. Further attention on howquality perceptions translate into store loyalty,favorable word of mouth publicity and satisfactionlevels. Thus, it is an important aspect of servicequality in retail sector, which can motivatecustomers and increase their support. Another areaof research to focus is on the service qualitystrategies that overseas entrants are using in theIndian retail market to steer market share fromestablished, domestic retailers. Since, multinationalcompanies are looking to expand their retail outletsin India. Indian retailers must be vigilant to

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anticipate possibility of MNCs overpowering themand taking away their established customer base.

1.11 Conclusion

This paper primarily intended to review studiesconducted on RSQ in Western countries, Africa,Asia and specifically in India. The review of thestudies showed that all the dimensions namelyPhysical Aspects, Reliability, Personal Interaction,Problem Solving and Policy. The customers shouldbe satisfied and the management needs to takenecessary steps to improve service quality in all thedimensions.

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18. Kagira, Elias Kiarie., & Kimani, Sarah Wambui(2010). “Marketing Principles and Practices:An African Perspective”, Nairobi. MashelPublishers.

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246.

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*****

The Author is thankful to Dr.S.F.Chandra Sekhar,Professor and Head, Department of HumanResource Management, Kompally, Secunderabad.

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The world’s worst power outrage affected 600million people, business worth an estimated $1.5billion was lost, trains stopped, flight schedules werethrown out of gear, miners were trapped, in deepcoal shafts and hospitals had to switch theemergency operators. Half of the population wasin the darkness on 31st July 2012. This was becauseof the failure of three grids in supplying to north,eastern, north eastern regions of the country. Inrecent times power outrages made headlines in US,Canada, Brazil and Greece. This is not an exceptionto India, but this crisis in not an ordinary crisis,because investors are looking in infrastructuresupport from the government of India. Repeatedgrid failures may create a negative opinion aboutIndia in the international market. Industry expertsconcur that there is a serious shortage of electricityin India. The annexure- III explains very clearlythat power loss is taking place& that the powerprojects get delayed or stalled for want ofenvironment forest coal block clearance and publicagitations. Ministry of power had to battle seriousfuel linkages that required generating power andenvironmental issues, apart from land acquisitionproblems through people agitations.

Currently, India has a total installed capacity of 2,05,339 MW, but on a bad day fuel problems,maintenance can trim this to 1, 30,000 MW. Thedeficit worsened because of poor supply of fuel, poormonsoon falling reservoirs, level high temperatures,farmers to rely on electrical pumps to irrigate theirland. This black out was a disaster waiting tohappen. An official from ministry of power admitsthe hydel generation is less than 50 percent becauseof deficit water in reservoirs and many thermalplants are not running to optimum level because ofinadequate coal supply.

Coal supply and demand scenario in India:Mr.Venugopal Dhoot, Chairman of Videocon

Case Study

Black MagicDr. Pavan Patel* and KVS Krishnamohan**

Industries points out “the power sector is facingproblems in terms of fuel supply linkages, landacquisitions and environmental concern if they arenot are addressed by the government, we may missour target of adding100, 000 MW capacity in the12th five year plan. He further emphasized that “thecoal sector inefficacy is creeping into the powersector. Mr.Ashok Khurana, Director General ofAssociation of Private Power Producers, said that“today 35,000MW of coal –fired projects areworking on less than 40 percent of the installedcapacity due to lack of coal supply”,Association ofPrivate Power Producers which represents 24companies. Ministry of Environment and Forestraised the hackles of the coal ministry by putting203 blocks in the “no-go” mining areas under forestcover. The coal ministry inferred that the countrycould lose the access to around 660 million tonnesof coal due to this classification. Coal from theseblocks was supposed to feed the thermal powerplants. Annexure-I highlights the nine powerprojects based on information from CII that werestalled or delayed due to want of environment/forestclearness or due to public agitations.

Thermal plants constitutes almost 66% of the totalinstalled power capacity in India & India has someof the largest coal reserves in the world(approximately 270 billion tons) and these aredomestic suppliers. Coal production in Indiahandled by Coal India Limited (CIL), which is oftencriticized for insufficient production supply tomeet demand. However, CIL can only supply about60% of our coal demand. CIL’s monopolisticposition has often resulted in supply bottlenecks,delays in developments of new coal fields andinadequate emphasis on cost reduction atoperational level. Coal pricing is also a crucial issue.Coal India, being the dominant producer of coal inthe country, has to adopt a pricing policy which istransparent, credible and based on global norms.

*Professor-HR, SSIM, Kompally,Secundarabad, 500014, Andhra Pradesh.India.**Associate Professor, Kompally, Secundarabad, Andhra Pradesh.

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There is perhaps need to introduce competition inthis sector. In April 2012, the GOI (Government ofIndia) invoked a rare presidential decree to forceCIL, India to sign long-term fuel supply agreements(FASs) with private power companies.

Domestic coal production is projected to increaseby over 795 million tons by 2016-17. There areserious challenges towards, achieving the targetoutput and in any case demand for coal is expectedto reach at least one billion tons by 2017. CIL hasagreed to enter in to FASs with 48 new projectswith a very low penalty (0.01percent) for non-supply.

Finally, coal supply in India and coal issues aredebated very seriously in the parliament, politicalparties are demanding for CBI enquiry on theallocation of mines to different companies. In thissituation there are many unanswered questions andchallenges. Spokesperson of one leading powercompany says that “you cannot expect companiesto invest billions without knowing if the coal blockallotted will be taken or held back for one reason toanother”. This is the back ground of coal supply inIndia. The opportunity explored by an Indiancompany to supply coal for thermal powergenerating companies, identifying opportunity atinternational level and got all approval to supplycoal to the companies’ in Asia and APAC region,the company is proud to be contributing to theeconomy & the company is popularly known asGVK.

GVK has identified and explored opportunities inIndia’s power sources (Annexure-II) will provideinformation on different sources of powergenerating in the country. The table shows veryclearly that country largely is dependent ongenerating thermal power. Further the Indiancompanies which are generating thermal powerhave lost their share price in performance sinceJanuary 2011. The Annexure-III further providesmore details in terms of share value of eachcompany, which is an alarming situation for theeconomic condition of the company. Powergenerating companies are able to get coal supply togenerate the fullest to their capacities of power.

Overview of GVK

GVK is a leading Indian conglomerate with

diversified interests across various sectors includingenergy, resources, airports, transportation,hospitality and life sciences. It has taken pioneeringinitiatives across many sectors that it operates inand has overcome every challenge to provide reliableinfrastructure to contribute to the country’s growth.GVK’s greatest strength is its highly experiencedand proficient in-house talent pool. GVK’scollaboration with global infrastructure leaders hasbrought international expertise to India reflectingexcellence and advancement in all its endeavors.Having already invested over Rs. 15, 000 crore(USD 3.3 billion) the company has projects worthover another Rs. 30, 000 crore (USD 6.6 billion) inthe pipeline, in India. GVK has pioneered variousinfrastructure projects viz. setting up India’s firstIndependent Power Plant (IPP), first six-lane roadproject and first Brownfield airport under the PublicPrivate Partnership model.

GVK is developing and managing two of the busiestairports in the country namely, Chhatrapati ShivajiInternational Airport(CSIA), MumbaiInternational Airport(MIB). GVK also has roadprojects of over 2200 lane km under constructionand development apart from the 542.4 lane kmJaipur-Kishangarh Expressway under operation.GVK has established itself as a premium hospitalityenterprise in name of Taj GVK properties. GVKBiosciences is Asia’s leading Contract ResearchOrganization (CRO) with 1250 scientists working,across the R&D value chain for leadinginternational pharmacy, agro, biotech and lifesciences companies.

GVK is a socially responsible and anenvironmentally conscious organization thatbelieves in sustainable development. It runs varioussocial initiatives under the GVK Foundation for theoverall development of the society. GVK EMRIattends to every emergency, be it a medical crisis,law and order situation or a fire disaster. Thisservice is spread across 11 states and 2 unionterritories with 3160 ambulances and over 17000employees. GVK, with its various developmentalservices aims to make a difference to the lives ofpeople all over India.

GVK Energy sector business:The 540 MW(2X270 MW) thermal power project is underdevelopment near Goindwal Sahib Village, District

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Tarn Taran in the state of Punjab. To meet the fuelrequirements of Goindwal Sahib, coal will besourced from Tokisud and Seregarha coal mines inJharkhand. AMoU has been signed with PSPB(Punjab State Power Board) to develop 2x660 MWthermal power project. For this upcoming coal basedthermal power project’s fuel requirement,application for coal linkage/mine allocation wassubmitted to the Ministry of Coal.It has over 900MW operational power plants and around 5000MW projects under various stages of constructionand development. Particular GVK energycompanies’ details are as following.

International Opportunity for GVK:

GVK has acquired the Hancock Coal Mines inAustralia with 8 billion ton reserves and a capacityof more than 80 million tons per annum for USD1.26 billion. It will also set up a 500 km rail lineand a 60 mtpa port as part of the ‘pit-to-port’logistics solution. The project envisages a totalinvestment of USD 10 billion. GVK welcomes theFederal Government’s decision to grantenvironmental approval for the Alpha Mine andRail Projects in Queensland, Australia. GVK’sAlpha Coal Project Gains Federal GovernmentApproval under the Environment Protection andBiodiversity Conservation Act 1999(EPBC).Following a rigorous and thoroughassessment process by two levels of governmentspanning four years, Federal Environment MinisterTony Burke gave an approval decision to constructand operate the Alpha Coal Mine and a railway linebetween the mine and the port at Abbot Point, nearBowen. “We are delighted with the FederalGovernment decision. Ultimately we believe theoverall assessment process has resulted in bestpractice environmental protection outcomes,” saidGVK Chairman and Managing Director, Dr. GVKReddy. It may be recalled that the QueenslandGovernment had earlier accorded the environmentclearance for the said project in May, 2012.

Table No01: GVK’s Respect and Commitmentfor the Environment

• GVK is a very environmentally responsiblecompany;

• It has been working with environmentalexperts, environmental government agencies,

landholders and stakeholders for four (4) years(since 2008);

• A rigorous and detailed environmentalassessment process has been followed by GVKin Australia, a country that has one of thehighest environmental standards in the world– which GVK fully supports and excuted.

• GVK has spent in excess of $25 millionspecifically on ensuring that its environmentalassessment process is of the highest standard;

• GVK has employed 275 environmentalpersonnel in its study work to ensure that thisproject has a very high environmental standardand values; and

• GVK chose to invest in Australia because ofits low political risk, coupled with strongenvironmental and safety standards whichalign with GVK’s corporate philosophy andvalues.

This is another important milestone for the projectwhich will provide significant benefits to the Alphaand Bowen regions, of the state and the country.The projects we are planning will provide 2,000on-going jobs in operations, directly employ around4,000 during construction and return togovernment $1.5bn annually in royalties and taxesat peak production”, said GVK Vice-Chairman, GV Sanjay Reddy.

GVK has acquired a 79% stake in the Alpha Coaland Alpha West projects and a 100% stake in theKevin’s Corner project in Queensland fromHancock Prospecting Pty. Ltd. These projects holdtotal resources of 8 billion tonnes and a peakcapacity of 80 million tonnes per annum. Whencombined, these Projects will create one of thelargest coal mining operations in the world. TheAlpha Coal project has a mine life of 30+ yearsand a capacity of 32 mtpa which makes it suitablefor high production open cut mining. GVK has alsoacquired a 100% stake in the 500 km rail line and a60 million tonne per annum port as part of the “pit-to-port” logistics solution. The QueenslandGovernment has selected GVK’s Rail Corridor asthe north-south corridor for connecting the GalileeBasin to the Port of Abbot Point in Australia. GVK’scoal mining project with its superior quality low

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ash, low sulphur and low gas thermal coal, will bereliably exported mainly to Asian destinations.Construction is expected to start next year with firstcoal being produced in 2015/16.

“This positive decision also paves the way to ensuremore than 1.4 billion people (largely in Asia) thatface a major shortage of electricity, are providedwith an additional source of coal to enhance supplyof electricity to the region, thus improving qualityof life of the people and overall economicdevelopment”, said GVK Vice-Chairman, G VSanjay Reddy.

Queensland Government selects GVK’s RailCorridor for connecting Galilee Basin to AbbotPoint Port in Australia:

Commenting on the announcement, Dr. GVKReddy, Chairman and Managing Director,said, “Wewelcome the state government’s decision to approvethe construction of the GVK Rail Corridor from theGalilee Basin to the port of Abbot Point. Thisinvestment will deliver wider benefits as it providesboth initial and additional capacity to satisfy bothGalilee and Bowen Basin rail capacity requirementsin the future. This, combined with the continuedinvestment in the Strategic Rail Corridor,underlines the Government’s commitment todevelop rail infrastructure for many decades tocome.”

GVK has maintained that its railway alignment isthe most efficient and cost effective option that willbenefit the Galilee Basin for several decades to come.It is also the most advanced agreement whichreached to a majority of landowners, railinfrastructure manager accreditation in place,advanced design based on extensive operationalmodeling and ground survey and strong interest forthird party rail haulage services from other GalileeBasin proponents and existing Bowen Basin coalproducers.

One of the requirements of the government was toallow third party access, which GVK has embracedfrom the outset, with a public expression of interestprocess for haulage commenced in September 2011,immediately after GVK’s majority acquisition of theproject. GVK remains committed in providinghaulage services for proponents in the Galilee andBowen Basins.

Mr. G V Sanjay Reddy, Vice Chairman, GVK, said“We welcome this development and see this as ahuge vote of confidence in GVK and mostsignificantly recognition of the vital role that wewill play in the construction of this rail corridorthereby supporting jobs and also driving sustainableeconomic growth. The GVK Rail Corridor from theGalilee Basin to the port of Abbot Point would alsohelp create opportunity for mines in the region totransport their product to the port, therebyfacilitating economic development of the region.”

GVK is now looking forward for further cooperationwith the State and Federal Government and thirdparty users as it continues to finalize the requisiteapprovals to enable the construction of the 495kmstandard gauge multi-user rail system from theGalilee Basin to Australia’s closest port to Asia,Abbot Point, just north of Bowen..

Quality export thermal coal will be transportedreliably and responsibly by state of the art 25,000tons trains utilizing rolling stock not seen before inQueensland. Initial capacity and current approvalsare for 60 million tonnes per annum (Mtpa),however the rail line is scalable to 120Mtpa on thesingle line, whilst duplication and the addition ofpassing loops in the north would allow for expandedcapacity in the coming decades that would satisfyGalilee and Bowen Basin rail capacity requirements.The north/south corridor announcement today willbe of a relief to landholders along the rail corridorand GVK particularly acknowledges the assistanceand patience of landholders over the past threeyears. GVK also acknowledges the traditionalowners along the route with whom it also hasagreement.

Questions for Discussion:

1. Can you identify different phases in Macro-economic in India since 1991?

2. Based on this case what do you mean byInternational Business? Identify businessissues that are needed to address by GVK torun the Global business?

3. Identify the problems confronted by GVK atInternational level &how they are different atthe domestic front?

4. Is it beneficial for nations to become dependent

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on one another? Identify important benefitsfor doing international business by GVK andhow it will help business at large?

Annexure- I

Power projects that get delayed or stalled for wantof environment forest coal block clearance andpublic agitations.

S.No Name of the Power Unit Loss in MW

1. NTPC Bijapur,Karnataka 4,000

2. Reliance Power, Chitrangi,MP 3,960

3. NHPC, Dibang Valley, Arunachal 3,000

4. Jaypee, Lower Siang,Arunachal 2,700

5. NPCIL,Kudankulam,TN 2,000

6. NHPC,Middle Subansiri, Arunachal 1,600

7. Coastal Energen,Tuticorn,TN 1,200

8. KSIC, Cheemeni,Kerala 1,200

9. Essar, Mahan,MP 1,200

Source: Confederation of Indian Industry (CII)

Annexure-IIIndia’s power source

Total installed capacity: 2, 05,339 MW

S.No Type of Power Total Contribution(%) in MW

1 Thermal 69% 1,36,436

2 Hydro 19% 39,291

3 Renewable 13% 24,832

4 Nuclear 2% 4,780

Annexure- III

Power companies performance- Share priceperformance since Jan2011 (%change)

S. No Name of the Share price %Company change

1. NTPC -19.9

2. Power grid 20.4

3. Tata Power -29.2

4. NHPC -36.3

5. JSW Energy -48

6. Adani Power -66.9

7. Torrent Power -43.5

8. Reliance Power -41.8

9. India bulls Power -53.8

10. Sensex -16.6

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Introduction

This case introduces the emergence of the globallyintegrated business world. Globalization hasreduced the traditional barriers to cross-border tradeand investment (distance, time zones, language,differences in government regulations, culture, andbusiness systems). Further this case will help inunderstanding how developing economies canconvert developing economies to developedeconomies through supplementing or strengtheningdomestic companies.

To begin the discussion of contemporary issues ininternational business, we review macro-economicand political changes in the last 20 years in India.How Indian macro-economic changes are helpingthe Indian economy to strengthen. This backgroundhelped us to fix certain objectives to study andunderstand through this case study.

The objectives are as follows.

1. Macro-economic environment in India in thelast 20years.

2. Globalization, components of globalization,understanding International business andGlobal business.

3. International business how they are differentwith domestic business and Understanding theconcept of International Business and GlobalBusiness.

4. The benefits for nations to become dependenton one another, advantage for Indiancompanies involving in International business.

Macro-economic scenario in India - in the last20years:

The strategic issues facing Indian companies overthree periods, the pre-independence stage i.e. tillthe 1989-1990, the liberalization stage i.e. the 1990-91 and the post liberalization i.e. 2000 and beyond.

Pre-liberalization stage:

1. Subsuming enterprise objectives in to nationalplanning frame work.

Teaching Notes

BLACK MAGIC

2. Capabilities in generating and grabbingopportunities.

3. High diversification, non-competitive scalesand weak technology capabilities.

4. Secretive and one-man strategic decision.

The decade of the 1990’s: Transitionaleuphoria and reality check.

1. Carried operation de-linked strategy mindsetto the early 1990s

2. Foreign complex governed strategy in oldergroups in early 1990s

3. Strategy of focus through acquisitions,internationalization and product-marketexpansion by some companies in the late1990s.

4. Experimentation with internationalconsulting firms in strategic decisions.

Post-Liberalization stage:

1. Acquire a global maverick mindset and activelyshed pre-liberalization thinking.

2. Synergies entrepreneurial fair withprofessional skills in strategic decision.

3. Mobilizes increased resources and ensureadequate growth through existing business.

4. De-merge business as independent companies,for focused and improved marketcapitalization.

5. Decentralization organization and developinstitutionalized control mechanism.

6. Actively promote development of technologycapabilities.

Globalization:

Globalization is a shift toward a more integratedand interdependent world economy.

Globalization has two components:

The Globalization of Markets

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The Globalization of Production

Globalization of Markets

In many markets, the emergence of a globalmarketplace has begun to occur. There are threecauses: Falling barriers to cross-border trade havemade it easier to sell internationally; tastes andpreferences converge onto a global norm; firms offerstandardized products worldwide creating a worldmarket. In spite of globalization of the markets forsome products, there remains asignificantdifferenceacross most national markets. Therefore oftencountry-specific marketing strategies and productmixes are required.

The most global markets currently are not marketsfor consumer products—where Nationaldifferences in tastes and preferences are still oftenimportant enough to act as a brake onglobalization—but markets for industrial goods andmaterials that serve a universal need the world over.These include the markets for commodities suchas aluminum, oil, coal and wheat; the markets forindustrial products such as microprocessors, andcommercial jet aircraft; the markets for computersoftware; and the markets for financial assets.

Globalization of Production refers to thesourcing of goods and services from locationsaround the globe to take advantage of nationaldifferences in the cost and quality of factors ofproduction (such as labor, energy, land, resourcesand capital). By doing this, companies hope to lowertheir overall cost structure and/or improve thequality or functionality of their product offering,thereby allowing them to compete more effectively.

• Historically this has been primarily confinedto manufacturing enterprises

• Increasingly companies are taking advantageof the modern communication technology,particularly the Internet, to outsource serviceactivities to low-cost producers in othernations.

Understanding International Business and theGlobal business:

International business traditionally is defined as1.Business (firm) that engages in international(cross border) economic activities and/or(2). Theaction of doing business abroad. Global business is

focusing on business around the globe. Globalbusiness includes both 1.International (cross-border) economic activities and 2. Addressing theissues related to domestic business activities. Globalbusinesses will emphasis on how a company willhandle the international business and how capableis it in handling the domestic businesses whichisbenefiting from the international opportunity.Such deliberated blurring of the traditional normsseparating international and domestic business isimportant to day because previously nationalized(domestic) markets are now globalized. Understandthis complex distinction international and globalbusiness the following example may give clarity, Cengage (formerly South -Western and then Thomson)Pearson and McGraw -Hill fought against each otherlargely in the United States. Now they havesignificantly globalized their competition, becausethe high quality books were demanded by many B-schools in rest of the world, these publishers arereprinting exclusive editions to different markets,so it is very difficult to tell in such a competitiveenvironment what is international and what isdomestic. At same time these publishing companiesare not ignoring the domestic competition in theirmarkets.

International business, how they are differentwith domestic business:

International business operates in totally differentcontexts than the domestic businesses. Some of thedifferences include language, culture, currency,approaches to business, consumer wants, consumertastes. Such contextual differences tend to increasethe complexity of business. If an internationalbusiness attempts to use the same businesstechniques it uses domestically, it is quite likely tofail. There are many examples of such failures, fromsmall companies struggling to make an impact tolarge multinationals such as Procter & Gamble, whofailed in Japan when they first introduceddisposable diapers to that market because they usedthe same diaper they sold in Kansas City.

It is beneficial for nations to become dependenton one another:

Dependency between nations which results frominternational business is benefi-cial as it leads togreater coopera-tion, hope-fully leading to morepeaceful economic and politi-cal relations as well

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as higher standards of living. However, dependencyalso increases the risk as any political and economicchanges in one country can affect its tradingpartners; possibly affecting their economic andnational security these issues cannot be over ruled,but a company going for the international businessthe political, social and economic issues has to beconsidered. At the same time the domestic marketalso need to be focused and strengthen themanagement practices to retain the business in thenational market also. In an idealistic situationnations becoming interdependent ideal solution forachieving economic development. “Black magic”case emphases that national market situation insupply and demand for coal will be a better optionas it leads to creating a dependency of one nationto the other for the private companies to producethermal power in the domestic market.

References:

1. “No Half way house here” published inBusiness India, issue dated August 19, 2012,pp 43-50.

2. “Coal-strapped” published in Business India,issue dated August 19 2012, pp 44-45.

3. “Queensland Government selects GVK’s RailCorridor for connecting Galilee Basin to AbbotPoint Port in Australia” Business Line, 23 Aug2012.

4. GVK receives federal environment clearancefor Alpha coal project in Australia, BusinessLine, 26 August 2012.

5. “An agenda for strategic management inIndian companies” R Karki and R.TKrishanan’Strategic Management in Indiancompanies. Evolution and an agenda for 2000-2010. Proceeding of the Second Annualconference of Straegic Management forum,Indian Institute of Management, Banglore

6. Strategic Management and Business Policy,fifth reprint edition, Azhar Kazmi, Tata McGraw-Hill publishing company Limited, pp 68-96.

7. International Business and Its Environment,Fifth revised edition:2011,Francis Cherunilam,Himalay Publishing House, pp 50-72 and pp351-356

http://www.gvk.com

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ArindamChaudhury is the honorary dean at theCentre for Economic Research and AdvancedStudies (CERAS) at IIPM, New Delhi. Known forhis own vibrant style, Mr.Choudhary authored otherbest sellers which include Count Your Chickensbefore they hatch, Great Indian Dreams, Cult andThorns to Competition.

The author identified 9 characteristics which makethe human beings to realize the potential they haveand turn out to be a ‘Human Diamond’ in life.Bollywood superstar Mr Shah Rukh Khan in theforeword recalled the events in his own life.In hisown words “Success is never final, just like failureis never fatal”, Mr Shah Rukh Khan felt that thereis a lifetime of learning squeezed in to thisinnovative book which requires 59 minutes tocomplete the reading.

The book is organized in to 6 chapters quite aptlynamed, emphasizing the qualities of the diamondviz., Carat, Cut, Colour and Clarity. First chaptertitled ‘The 9 P Success Triliant’ sets tone to thetheme of the book defining the 4 qualities ofdiamond and the essential characteristics one needsto acquire to become a ‘Human Diamond’.

The author related the human characteristics viz.,Passion, Positive Energy, Performance,Perseverance, Personality, People Skills, Perspective,Principles and Patriotism with the four qualities ofthe diamond. Carat weight which makes thediamond invaluable is akin to the depth anindividual possesses which in turn is representedby Passion and Positive energy. Performance andPerseverance enable the individual shine as in thecase of ‘Cut’ of a diamond. As the colour enhancesthe visibility of a diamond, Personality and PeopleSkills enhance an individual’s visibility. Fourth

Book Review

DISCOVER THE DIAMOND IN YOUAuthor: ArndamChaudhury

Publisher: Vikas Publishing House P Ltd, New Delhi

ISBN: 978-81-259-3700-5

Reviewers: Dr S.V.Ramana Rao, Professor & HOD-Finance, SSIM& K.V.S.Krishnamohan, Associate Professor & Chairmen- Placements, SSIM

quality that makes a diamond great is its clarity.Author prescribes Perspective, Principles andPatriotism to be the essential characteristicsresulting in to greatness of an individual. These ninecharacteristics each starting with a letter ‘P’ arenamed as ‘9P Success Trilliant’. Each of thesecharacteristics are discussed in subsequent chapters.

By quoting the lives of Phil Knight and BillBowerman author reiterates the fact “Follow yourpassion and everything will follow”. Warren McDonald and Bruce Lee’s were referred to be thesources of thought, “The higher the positive energy,the more our chances of achieving success”. Whileexplaining the importance of the two ingredientsof Cut viz., Performance and Perseverance,references were given of the lives of Roger Bannisterwho broke the ‘4 minute syndrome’ to cross a mile,Anita Roddick’s connect with tribal women andsocial responsibility initiative and so on. A plethoraof inspirations were drawn from the personalitieslike KiranMazumdar Shaw, Richard Branson, SteveJobs etc., As Colour is to a diamond, personalityand people skills are to the human diamond. Theauthor gives ‘LAW’ as recipe to personality buildingwhich stands for Looks, Actions and Words. “Greatpeople, not great strategies are what made it all work!”, Jack Welsch’s slogan was remembered toemphasize the role of people skills in buildingsuccessful organisations.Fourth quality of thediamond, Clarity can be added to a human diamondby perspective, principles and patriotism.Perspective viewed as the ability to gain insight andthe guts to believe in dreams and carry on, authorrefers to Ray Kroc of Mc Donald, Mark Zuckerbergof Facebook, Jeff Bezos of Amazon. Netaji, NelsonMandela and Howad Schultz of Starbucks and JRDwere mentioned to highlight the role of ethical

behviour. Arindam believed that “Inglorious is thatsuccess, which comes without patriotism”. Sony ofJapan, Grammen Bank of Bangladesh and othersuccess stories in Japan, Bazil and China weredrawn as sources of inspiration to be highlypatriotic.

The book ‘Discover the Diamond in You’ has beenwritten in lucid way eliciting interest in the reader

to complete the reading in ‘one go’ in less than anhour. It motivates the reader to carve one’s own-self in to a Human Diamond. Thought provokingcaricatures and the one liners printed in bold ineach chapter makes the reader difficult to forgetthe suggestions delivered by the author. This bookis a must read to anyone wishes to shine likediamond.

Siva Sivani Institute of Management

S.P Sampathy’s Siva Sivani Institute of Management is promoted by the Siva Sivani Group of EducationalInstitutions, which has been running the prestigious and internationally renowned Siva Sivani Public Schools formore than four decades. Approved by the All India Council for Technical Education, Ministry of Human ResourceDevelopment, Government of India, New Delhi, Siva Sivani Institute of Management started functioning as anautonomous institute in 1992.

Located in Secunderabad, far from the maddening crowd, about 6 Km. from Bowenpally along the NationalHighway No.7, Siva Sivani Institute of Management has an enviable environment - serene, spacious andstupendous. It offers an ideal environment for imparting value- based management education. The Institute designsand updates courses at any given point of time, even if it is in the middle of an academic year or a term for thatmatter.

Stalwarts from both the industry and the academia constantly provide inputs for fine tuning the course curriculumto meet the needs of the industry. SSIM is consistently ranked amongst the top Business Schools in the country.Currently, SSIM is ranked 35th in the country amongst the B-Schools of Excellence as per Business BaronsSurvey March 2009. The other Group Institutions are: Siva Sivani Global Centre for HR Excellence, Siva SivaniInstitute of Global Studies, Siva Sivani Man Management Private Limited and Siva Sivani Degree College.

Siva Sivani Institute of Management offers Seven PGDM Programmes:

The PGDM (Triple Specialization) This program prepares a student towards building multifaceted functionality.PGDM (TPS) is designed in such a way that has evolved from the needs of the industry, which is continuallylooking for managers with cross functional skills embedded and supported by IT savvy acumen. A student ofPGDM (TPS) has a major specialization one of Finance/Marketing/HR/System along with one of the specializationart of Finance, Marketing, HR, System, Operations as minor specialization and also elective courses like Finance,Human Resources and Marketing, ERP, electives such as Retail Management, Banking, Event Management,BPO Management, Insurance Management etc.

PGDM (Marketing): This is a highly specialized two year management programme in Marketing. This programmeis completely tailor made to the requirements of industry with respect to marketing.

PGDM (HR) with IT: This is highly specialized programme in HR along with IT focus. The latest and globalconcepts in the area of HR that includes compensation management, Psychometrics HR audit, Negotiating skills,Managing diversity etc.

PGDM (Banking, Insurance, Finance and Allied Services) : This programme encompasses all the financerelated areas and we have included Banking and Insurance sectors as specializations in addition to core Finance.All the latest topics in Bankingand insurance have been included and to name the few are Risk management inBanks,Technology management in Banks, Claims management in insurance, Actuarial science etc. Siva SivaniInstitute of Management has started non residential PGDM programmes in the second shift. There are threeprogrammes in the second shift they are:

PGDM (Global Business) : Siva Sivani offers a highly specialized program – PGDM in Global business. Theworld is fast becoming a global village and there is a huge demand for students who are multi skilled and who cantransfer their skills and expertise seamlessly across countries and continents. This well thought out and executedcourse with a through exposure to global thoughts and latest global practices will equip the students to becometruly global managers.

PGDM (Banking, Insurance, Finance and allied services) : It is the first of its kind to be introduced in theCountry. This program covers sectors like banking, insurance and also focuses on finance and financial services;it encompasses all the facets of finance and its applications. These students are equipped to take up any job infinancial sector.

PGDM (Triple Specialization) : This program prepares a student towards building multifaceted functionality.PGDM (TPS) is designed in such a way that has evolved from the needs of the industry, which is constantlylooking for Managers with cross functional skills and equipped with IT acumen. A student of PGDM (TPS) hasoption of choosing one major and one minor specialization among Finance/Marketing/HR/System, ERP, alongwith one elective from Retail Management, Banking, Event Management, BPO Management, and InsuranceManagement etc.

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Editorial Advisory & Review Panel: Eminent persons from the academic community and industry are guiding thejournal in its Endeavour. Professors from reputed institutions from India and abroad are members of the reviewpanel.

Frequency: The Journal is published bi-annually in the months of July and December.

Content Mix: The journal prefers to publish conceptually sound and methodologically rigorous papers that advancethe body of knowledge. The journal would publish Empirical Research Findings, Conceptual Papers, LiteratureReviews, Case Studies, Synopsis of Doctoral Theses and Book Reviews, summaries of Ph.D. thesis, roundtable ofacademicians, policymakers, industry experts on any topic relevant to present business scenario and articles oncontemporary business issues.

Review Process: SuGyaan is a referred journal. All manuscripts submitted for publication would be screened bythe editor for relevance to our journal. Appropriate manuscripts would be put through ‘double blind review process’that may normally take four to eight weeks. Accepted manuscripts may be edited to suit the journal’s format.Wherever possible reviewer’s feedback will be provided. However the journal has no binding to provide detailedfeedback in every case including the contributions rejected.

Remuneration: A sum of Rs. 3000/- will be paid to authors whose contributions are published in SuGyaan.

Copyright: Published manuscripts are exclusive copyright of SuGyaan, Management, Journal of Siva Sivani Instituteof Management. The copyright includes electronic distribution as well.

Format and Style:• Articles should not exceed 10000 words (10-15 A-4 size pages, typed in double space) including charts,

tables and other annexure.

• An abstract not exceeding 150 words should be included in the beginning of the paper.• Manuscripts should be submitted in duplicate.

• Author’s name, designation, official address etc., should be mentioned only on the cover page. Author’sidentity should not be mentioned anywhere else in the paper.

• Only those sources that are cited in the text should be mentioned. References should be listed as per thestandard publication norms for journals.

• Tables and Figures: Their location in the text should be indicated as follows: Table-I about here

• Endnotes: All notes should be indicated by serial numbers in the text and literature cited should be detailedunder reference in alphabetical order of the surnames followed by year of publications at the end of theauthor’s name. (Footnotes should be avoided)

• References: The list should mention only those sources actually cited in the text or notes. Author’s nameshould be the same as in the original source.

• In the text, the references should appear as follows: Hofstede (1983) has elucidated .. or recent studies(Frank 1993; Berry, 2001) indicate...

• Journal references should be listed as follows: Yagil, D (2002), Ingratiation and Assertiveness in the ServiceProvider-Customer Dyad. Journal of Service Research, Vol 3, Issue 2, pp 345-353.

• Books should be referred to as follows: Pfeffer, J. (1981). Power in Organizations, Boston, MA: Pittman.

• Along with the manuscript, authors should provide a declaration that article is original, not published anywhereelse and not under review with any other publication.

• Authors will receive a complimentary copy of the journal in which their article is published.• Authors have to submit a declaration stating that the paper is original and is not currently under review with

any other Journal.We look forward to your contributions for the next issue in June 2013. The last date for receipt of manuscripts isMay, 30, 2013.

Correspondence:Manuscript and all correspondence has to be addressed to

Dr. Kompalli Sasi Kumar, Asst. EditorSiva Sivani Institute of Management, NH-7, Kompally, Via-Hakimpet, Secunderabad-500 100.

Phones: 040-65457236, 65457237, 040-27165450-54, Fax : 040-27165452, Website : www.ssim.ac.in

Manuscript can also be submitted by electronic format via e mail tosasikumark@ssim.ac.in, kompalli99@rediffmail.com,

SuGyaan

Volume IV, Issue II

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NH7, Kompally, Secunderabad - 500 100. A.P., IndiaPhone : 040-27165450-54, 65457236/37,

Fax : 040-27165452Website : http://www.ssim.ac.in