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Volume 05 July 2016 Number 01 A STUDY OF PREFERENCE FACTORS OF CONSUMERS IN MULTIBRAND RETAILING Dr. A. R. Srivastava Recognised by UGC Under Section 2(f) A COMPARATIVE STUDY OF DISCLOSURES PRACTICES OF SELECTED INDIAN AND U.S. BANKS Ms. Meenakshi Chawla Prof. Pramod Kumar INTELLECTUAL PROPERTY RIGHTS GALLOPING INDIA THE SUCCESS WAY: STUDY OF INNOVATION AND COMPETITIVENESS IN THE INDIAN CONTEXT Mayank Sharma EFFECT OF WORKPLACE BULLYING ON EMPLOYEES PRODUCTIVITY IN THE PRIVATE ORGANIZATIONS WITH SPECIAL REFERENCE TO DELHI & NCR. Shaifali Garg Dr. A. K. Srivastav ASSESSMENT OF TRADITIONAL AND EGALITARIAN GENDER ROLE IDEOLOGY AMONG SINGLE AND DUAL EARNING FAMILIES Dr. Neha Saxena EMOTIONAL INTELLIGENCE AND EMPLOYEE ENGAGEMENT: KEY TO RETENTION Priyanka Jain Dr. (Prof) Taranjeet Duggal CASE STUDY: AN EFFORT OF FARIDABAD ENTREPRENEURS FOR ENERGY EFFICIENCY Bindu Agrawal

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Page 1: Volume 05 July 2016 Number 01 - gla.ac.ingla.ac.in/public/uploads/filemanager/media/PRASTUTI---VOL-05.pdf · volume 05 july 2016 number 01 a study of preference factors of consumers

Volume 05 July 2016 Number 01

A STUDY OF PREFERENCE FACTORS OF

CONSUMERS IN MULTIBRAND RETAILING

Dr. A. R. Srivastava

Recognised by UGC Under Section 2(f)

A COMPARATIVE STUDY OF DISCLOSURES

PRACTICES OF SELECTED INDIAN AND U.S. BANKS

Ms. Meenakshi Chawla

Prof. Pramod Kumar

INTELLECTUAL PROPERTY RIGHTS GALLOPING INDIA

THE SUCCESS WAY: STUDY OF INNOVATION AND

COMPETITIVENESS IN THE INDIAN CONTEXT

Mayank Sharma

EFFECT OF WORKPLACE BULLYING ON EMPLOYEES

PRODUCTIVITY IN THE PRIVATE ORGANIZATIONS

WITH SPECIAL REFERENCE TO DELHI & NCR.

Shaifali Garg

Dr. A. K. Srivastav

ASSESSMENT OF TRADITIONAL AND EGALITARIAN

GENDER ROLE IDEOLOGY AMONG SINGLE AND DUAL

EARNING FAMILIES

Dr. Neha Saxena

EMOTIONAL INTELLIGENCE AND EMPLOYEE ENGAGEMENT:

KEY TO RETENTION

Priyanka Jain

Dr. (Prof) Taranjeet Duggal

CASE STUDY: AN EFFORT OF FARIDABAD ENTREPRENEURS

FOR ENERGY EFFICIENCY

Bindu Agrawal

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Executive Editor

Keeping an eye on Kaleidscopic range of issues influecing the business management and administration Prastuti - Journal of Management and Research forays into the realm of advances and a melioration being made in the field of managment practices and studies. It provides a podium for the dissemination and experimentation for practices and policies of the business managment and administration. Prastuti (ISSN 2320-2262) is published annually by the institute of Business Managment, GLA Universtity, Mathura.

GLA University of PRASTUTI, Journal of Management & Research assumes no responsibility for the views expressed or information furnished by the authors.

Please direct all the manuscripts, editorial correspondence and subscriptions by D.D. in favor of GLA University, payable at Mathura to the EDITOR-IN-CHIEF, PRASTUTI, Journal of Management & Research, Institute of Business Management, GLA University, Mathura-281406, Ph. No.: +91-5662-250718, E-mail: [email protected]

Vol. 05 - No. 01 © 2016 Institute of Business Management, GLA University, Mathura

Prof. D.S. Chauhan, Vice-Chancellor, GLA University

Prof. Anand Mohan Agrawal

Dr. Ankit Saxena

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Editor’s Preface

The world trade and industry gamut has gone under notable revolution in last few months in

many aspects. The global economy is in the evolution of resurgence, combating the several issues like

international terrorism and inter-continental political issues. In India, we witnessed a diverse economic

pour. There have been numerous growth oriented initiatives and reforms, however the desired outcome is

yet to realize. With all around focus on industrial growth and equally supported by efforts at not only at

macro but also at micro level from each and every player of the game.

Coming to the current issue of this journal, I am pleased to inform that, we have published seven

quality publications spreading different functional areas of Management domain. The papers have

approached to various domains of business management, life management as well as economy.

Srivastava in his contribution entitled “A Study of Preference Factors of Consumers in Multi-

brand Retailing” has studied that organised retail was flourishing in India unlike other states Jharkhand

also witnessed the entry of Multibrand retail chains like Reliance, Vishal, Spencer, Big Bazaar but all of

them could not sustain. Spencer exited Jharkhand soon followed by closure of Vishal twice in Dhanbad.

This signalled that just opening of stores would not work. Retailers need to understand the changing

preferences factors affecting consumers buying to be successful in the long run. This study is an attempt to

identify the consumer preference factors in Multibrand retailing. Factor analysis has been used to identify

the preference factors.

Chawla and Kumar in another empirical research paper viz. “A Comparative Study of Disclosures

Practices of Selected Indian and U.S. Banks” have truly highlighted that Disclosure practices in banks

become very important to decision makers in the era of today’s knowledge-based economy. As a result,

each banks takes attempt to disclose its information to insiders and outsider decision makers. In fact, it is

becoming an integral part of annual report. The current study shows disclosure practices of selected

Indian and U.S banks and considered some micro structure variables i.e. Net profit, Staff Productivity,

Non Performing Assets and ROE in assessing their effect on the disclosure practices and reaches the

conclusion that these micro structure variables are significant affect on disclosure practices.

Sharma in his research article on “Intellectual Property Rights Galloping India the Success Way:

Study of Innovation and Competitiveness in the Indian Context” derive that the twenty-first century will

be the century of knowledge, indeed the century of the intellect. This research paper looks at the broad

contours of India’s current IPR regime and offers an assessment of the current situation as well as

scenarios for continued advancement. Author also looks at the case study of fostering innovation in

India’s pharmaceutical sector. Finally, this essay puts forth solutions for removing bottlenecks and

helping India create a more robust and stable IPR regime.

Garg & Srivastav in their empirical research work exploring “Effect of Workplace Bullying on

Employees Productivity in the Private Organizations with Special Reference to Delhi & NCR” talks about

organizational challenges which are always not measured by their wealth but their employees who face

challenges in the form of changing composition not only by work pressure but also by peer pressure and

attitude of the work force where prolonged mistreatment at the work place would have significant impact

on the employee’s productivity. This research paper aims to review the studies and examine the

effectiveness of Workplace Bullying on Employees’ Productivity in private organizations. This research

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paper is Descriptive in nature and makes use of primary data as well as secondary data and explored that

being a victim of bullying can lead to adverse effects which cause psychological and physical health

problems.

Saxena in her research work on “Assessment of Traditional and Egalitarian Gender Role Ideology

among Single and Dual Earning Families” comprehend that in recent past most significant social

transformation in India has been the increase in dual earning couples. Therefore the objective of the

present research was to identify the gender role ideology prevalent in single and dual earning couples.

Findings suggest that most of the males and females have traditional gender role ideology, but the shift

toward egalitarian gender role ideology is occurring gradually. Perception of dual earner couples is

changing more rapidly than single earner couples.

Jain & Duggal in their research paper entitled “Emotional Intelligence and Employee

Engagement: Key to Retention” have examined the effect of emotional intelligence on talent retention

through employee engagement. As talent retention is an outcome of employee engagement hence its

worth to study it in relation to engagement. The statistic results reveal a significant strong relationship

between emotional intelligence and employee engagement. The study also indicates that a good level of

engagement may lead to high employee retention.

Agrawal in her thought provoking case study on “Case Study: An Effort of Faridabad

Entrepreneurs for Energy Efficiency” derive that India a fastest emerging economy is heavily dependent

on energy for industrial development and growth which will lead to achieve the human development

goals. The country’s energy supply and demand has been a challenge for all including the Government as

it needs to create the opportunities for increased power generation and dissemination or alternative

arrangements. Various initiatives by the Government, organizations and industries regarding energy

consumption and efficiency have been taken. This case study is about one such initiative by the Faridabad

Small Industries Association. Faridabad Small Industries Association (FSIA) has initiated the Word Bank

Funded project for the Faridabad industries.

I take this opportunity to invite all the professionals, researchers and academicians to send their

conceptual or empirical papers, case studies and book reviews for publishing in this journal. Finally, I

thank all the reviewers for their time and valuable suggestions and also congratulate all the contributors

for their research.

Anand Mohan AgrawalEditor-in-ChiefPrastuti

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Contents

1. A STUDY OF PREFERENCE FACTORS OF CONSUMERS

IN MULTIBRAND RETAILING 01-13

Dr. A. R. Srivastava

2. A COMPARATIVE STUDY OF DISCLOSURES PRACTICES

OF SELECTED INDIAN AND U.S. BANKS 14-27

Meenakshi Chawla, Prof. Pramod Kumar

3. INTELLECTUAL PROPERTY RIGHTS GALLOPING INDIA THE

SUCCESS WAY: STUDY OF INNOVATION AND COMPETITIVENESS

IN THE INDIAN CONTEXT 28-45

Mayank Sharma

4. EFFECT OF WORKPLACE BULLYING ON EMPLOYEES

PRODUCTIVITY IN THE PRIVATE ORGANIZATIONS WITH

SPECIAL REFERENCE TO DELHI & NCR 46-55

Shaifali Garg, Dr. A. K. Srivastav

5. ASSESSMENT OF TRADITIONAL AND EGALITARIAN

GENDER ROLE IDEOLOGY AMONG SINGLE AND DUAL

EARNING FAMILIES 56-61

Dr. Neha Saxena

6. EMOTIONAL INTELLIGENCE AND EMPLOYEE ENGAGEMENT:

KEY TO RETENTION 62-67

Priyanka Jain, Dr. (Prof) Taranjeet Duggal

7. CASE STUDY: AN EFFORT OF FARIDABAD ENTREPRENEURS

FOR ENERGY EFFICIENCY 68-71

Bindu Agrawal

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Retailing has been there with our life since generations. Indians cannot think of their life without retailing. Retail outlets are available in every nook and corner of India. Retailing has evolved as one of the fastest growing industry in last two decades. The changing lifestyles of consumers have supported the growth as well as acceptance of the organised retail.Yet the organised retail sector is still evolving and holds only an 8% share of the total Indian retail market.

The success stories of global retailers have been a source of inspiration to the Indian business houses for entering the retailing business. This resulted in the entry of business houses like Birla’s, Tata, Raheja’s, Reliance, etc. in the Indian retail sector. The Indian retail sector witnessed a constant entry of new players and expansion of the existing ones. Organised retailers in the early years witnessed a substantial growth in their retail businesses but with passage of time the market became more competitive and challenging.

As organised retail was flourishing in India unlike other states Jharkhand also witnessed the entry of Multibrand retail chains like Reliance, Vishal, Spencer, Big Bazaar but all of them could not sustain. Spencer exited Jharkhand soon followed by closure of Vishal twice in Dhanbad. This signalled that just opening of stores would not work. Retailers need to understand the changing preferences factors affecting consumers buying to be successful in the long run. This study is an attempt to identify the consumer preference factors in Multibrand retailing. Factor analysis has been used to identify the preference factors.

Keywords: Organised Retail, Globalisation, Preference Factors.

A Study of Preference Factors ofConsumers in Multi-BrandRetailing

Abstract

Introduction

Retailing has been there with our life since generations.

Indians cannot think of their life without retailing. Retail

outlets are available in every nook and corner of India. It

is the last part of the physical distribution process.

Retailing has evolved as one of the fastest growing

industry in last two decades. Organised retail has been

readily accepted by Indians. The supportive policy of the

government has acted as a catalyst in a decent growth of

organised retail in India. Yet the organised retail sector is

still evolving and holds only an 8% share of the total

Indian retail market. This signifies a promising future and

a big market for organised retailers.

The changing lifestyles of consumers have supported the

growth as well as acceptance of the organised retail. The

increasing number of MNC’s and the process of

globalization haveopened up the world market for many

industries which has increased their chances of growth.

Retail sector has been one of the major beneficiaries of

the globalization process. The IT revolution has further

fuelled the growth of the retail sector across the global

market.

The retail sector has acted as an important role across

the globe in enhancing productivity across a wide range

of consumer goods and services. It’s impact could be

witnessed in countries like USA, UK, Mexico, Thailand

and more recently India and China. The economies of

countries like Dubai, Malaysia, Singapore, Hong-Kong

and Sri Lanka also heavily rely on the retail sector. In US

the retail industry is second-largest in number of

employees and number of establishments.

Dr. A. R. Srivastava*

*Dr. Abhaya Ranjan Srivastava, Assistant Professor, Department of Management,Birla Institute of Technology, Lalpur, Ranchi

01

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02

Prastuti: Vol. 5, No. 1, July 2016

S.

No.

Year

GRDI Rank

1

2012

05

2 2013 14

3 2014 20

4

2015

15

5

2016

02

The success stories of global retailers has been a source of

inspiration to the Indian business houses for entering the

retailing business. This resulted in the entry of business

houses like Birla’s, Tata, Raheja’s, Reliance, etc. in the

Indian retail sector. The global retail giants also entered

the Indian retail market eyeing the big market size and

increasing purchasing power of the Indians. The Indian

retail sector further witnessed a constant entry of new

players and expansion of the existing ones. Regular entry

of new retailers could be seen with new formats. The

present models which are successful highly in certain

parts of the country are only moderately successful in

other areas. Better services are used as one of the

important driver to bridge this gap(Krishnan & Venkatesh,

2008).

Organised retailers in the early years witnessed a

substantial growth in their retail businesses but with

passage of time the market became more competitive

and challenging.The Western part of the world is a

saturated market, most of the Middle-East is politically

disturbed, and the African market is not as attractive as

the Asian market. China & India has always been a

preferred destination because of their big population and

a decent growth. Presently India is one of the few

economies of the world which is constantly growing on a

decent pace when most other nations are slowing down

or saturating. The increasing purchasing power of the

Indian middle class has been one of the important

reasons for attracting Indian business houses as well as

globalretailers in the Indian retail market.

From the above table it can be seen that there was a major

slip down of India in the GRDI Ranking in 2013 and 2014

but after the formation of the NDA government in the

centre the ranking improved drastically. The

improvement in the year 2015 from Rank 20 to Rank 15

was due to the solid retail growth and a strong future

prospect predicted along with animproving GDP growth

rate for India. There have been significant regional

challenges but retailers are moving with the strategy of

having a long-term view on investments in developing

markets like India.

The reason for a long jump in GRDI ranking in 2016 from

Rank15 to Rank2 has been attributed to the improved

ease of doing business, GDP growth rate and

transparency regarding FDI regulations.The GRDI has

guided global retailers with their strategic investments

since 2002, a period in which the retail environment in

developing markets has undergone massive

transformation. GRDI uses around 25 macroeconomic

and retail-specific variables in ranking the top 30

developing countries for retail investment.

Retailers over the past year took a long-term perspective

of developing markets. Having a hold on investments in

turbulent regions but making targeted investments in

areas of growth. The retailers took a more cautious

approach to international market expansion in Middle

East and Latin America but at the same time few made

significant market exits. Russia was an exemption where

exits were due to the heightened political risk. This

prompted sizeable closures or complete exits from

players such as Addidas, Mexx, franchisee Maratex, etc.

Fortune of several organisations has changed through the

business of retailing. In the fast emerging Indian retail

market it became inevitable for the organisations to learn

how to retain and enhance their market. Entry of bigger

players is pushing the market to become more organised

and structured.In India organised retailers are presently

expanding their presence in tier 2 and tier 3 cities because

the cost of real estate has skyrocketed in the metro areas.

Metro, Bharti-Walmart and Carrefour have increased

their presence in these markets.

As organised retail was flourishing in India unlike other

states Jharkhand also witnessed the entry of Multibrand

retail chains like Reliance, Vishal, Spencer, Big Bazaar but

all of them could not sustain. Spencer exited Jharkhand

Table 1: Global Retail Development Index Rank of India in last five years (Source: www.atkearney.com/accessed on 17/06/2016)

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A Study of Preference Factors of Consumers in Multi-Brand Retailing

03

soon followed by closure of Vishal twice in Dhanbad.

Spencer again came back last year in Dhanbad and Vishal

also reopened there but this signalledthat just opening of

stores would not work. Retailers need to understand the

changing preferences of consumers to be successful in the

long run. This requires having the understanding of the

consumer preferences in the changing economic

scenario.As the Indian retail market is still emerging

theagainst this backdrop this study attempts to achieve

the following objectives-

1) To identify the consumer preference factors of

organised retail.

2) To analyse the importance of the identified

preference factors of organised retail.

Literature Review

A number of studies have been conducted in the field of

retail. Researchers from all part of the world have

contributed through their studies on various areas

specific to retail. The developing markets are able to

absorb all types of organised retailers be it global giants

like Wal-Mart or small domestic players. The efforts of

retailers, potential investors and more importantly the

government has to make it happen (Misra & Khan, 2008).

Research studies could be found in the area of impact of

organised retail, private brands, category management,

success factors for organised retail, brand loyalty, service

quality, store location, innovation in retailing,

etc.(Aggarwal, 2008). The present consumption and

spending patterns in Indian retail market is driven by the

young population in India (Krishnan & Venkatesh, 2008).

Researchers earlier have found that the cost acquiring

new customersis far more than retaining the existing

ones. Marketing literature consistently advocates that

customer satisfaction is a key antecedent to loyalty and

repurchase behaviour(Seisders, 2005). Recent empirical

studies indicate that satisfied customers are less price

sensitive and may also be ready to pay a premium

price(Homburg, Hoyer, & Koschate, 2005).In a research

study authors found that the profits generated from the

existing customers is more per customer than the new

ones(Smith & Taylor, 2005).

The significance of relationship marketing has been

highlighted and increased. Relationship marketing has

emerged as an area gaining the attention of several

researchers to know how companies are being benefited

b y b u i l d i n g l o n g - t e r m r e l a t i o n s h i p s w i t h

customers(Parasuraman, Berry, & Zeithmal, 1991). Apart

from helping marketers in understanding customer need,

relationship marketing leads in cost reduction, increasing

m a r k e t s h a r e a n d t h u s p r o f i t a b i l i t y f o r

organisations(Shani & Sujana, 1992). The shopping

attitude of customers are affected by factors like ease of

parking, best prices, special offers, loyalty or benefit card,

and incentives (Nielson, 1996). Authors indicate the

importance of factors like convenience, enjoyment,

apathy, shopping as a routine activity and as an event to

govern the shopping attitudes of customers

(Chetthamrongchai & Davies, 2000).

Consumers buy brands and these brands generate

income. So developing a strong brand becomes very

necessary for organisations. Only few brands are

successful in any product category. It takes years in brand

building. Rich nourishment, timely support of marketing,

promotions and distribution result in a winning brand

(Ramaswamy & Namakumari, 2002). The marketing

programmes tries to create a distinct and powerful

positioning of the brand in the minds of consumers. The

whole activity requires intensive resources and is very

time consuming. Advertisements play a limited role in

influencing the purchase of branded products (Lalitha,

Kumar, & Padmavalli, 2008). A brand signifies the quality

of products, its price, social recognition, status and also

the mental peace in terms of confidence that the

consumers feel that they have bought the right product.

In order to highlight their store brands retailers give them

more shelf space at attractive places(Burt, 2000).Quality

acts as the core and tangible benefit which differentiates

the retailer’s product from other competing products(Kar

& Nanda, 2011). Customers who are quality conscious

prefer to buy branded products from shopping malls

(Kaushal & Sanjay, 2011).

Customers prefer value,quality and a frictionless

shopping experience in totality (Tillman, 2007).

Merchandise, proximity, ambience and service have been

identified as driving factors for pulling the customers

towards the stores(Chavadi & Kokatnur, 2008). In a study

conducted on customer’s perception towards Mega

Marts in Ludhiana the author analysed that customers

preferred a particular mega mart due to its convenience in

terms of space, billing system, product range, multiple

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Prastuti: Vol. 5, No. 1, July 2016

04

choice, etc.(Sonia, 2008).By nurturing quality relationship

with customer’s retail outlets would be able to attract and

retain them ever loyal (Prasad & Aryasri, 2008).The

multiple effects of retail on the Indian economy are -

employment generation, development of small scale

units, real estate growth,development of retail ancillary

market, etc. (Aggarwal, 2008). Presently the retail sector

in India is the second largest employer after agriculture.

Price still remains as one of the most important

parameter in determining the profitability of the

business(Ramaswamy & S, Marketing Management,

2007).Prices and product displays are the main in-store

stimuli for the big size retail stores for impulse purchases

(Gupta, Heng, & Sahu, 2009).Majority of the customers

feel that product pricing is better in the organised retail

outlets (Dalwadi, Rathod, & Patel, 2010). Retailers need to

go for such pricing that it becomes very inviting for the

customers to pay close attention. Special pricing do have a

high impact on the customers purchase decision process.

(Patil & Vedak, 2011). Irrespective of how strong is the

brand relationship customers do go for price comparisons

(Sahay & Sharma, 2010).

The ambience created by the modern retailers in their

stores, the fast processing, better quality and hygiene,

discounts all of them are welcomed and appreciated by

the modern housewives (Krishnan & Venkatesh, 2008).

Researchers advocate that marketing strategies resulting

in the improvement in store image finally leads more sales

for the retailers. Store atmosphere, merchandise variety,

service, layout and merchandise quality were identified

as driving factors in the purchase of store brands from

organised retail (Venkateswaran & Mahalakshmi, 2010).

In a study on purchase of apparels from organised retail

outlets the authors identified seven important factors

reflecting various attributes. The identified factors were

named as appeal, price, variety, brand name, quality, style

and referral group (Lahiri & Samanta, 2010).

More than 60 percent of the customers perceive that

shopping convenience to be good in the organised retail

outlets (Dalwadi, Rathod, & Patel, 2010). The

convenience of one-stop shopping with wide product

portfolio is very much appreciated by the customers

especially the modern housewives (Krishnan &

Venkatesh, 2008). In a study of innovative marketing

practices the author has highlighted the increasing role of

mobile sms (short messaging service) and internet in

communicating effectively with customers(Agrawal,

2010).Product variety and convenient timings appear to

be the primary impression about the store, consumers

carry with them(Banerjee & Dasgupta, 2010).

In their study on Relationship marketing for Indian

shoppers the authors identified fourteen important

factors namely service augmentation, service

differentiation, alert staff, basics, error avoidance,

freebies, convenience, sensory appeal, proximity to

markets, delightment, superior layout, price, core

benefits, visual appeal out (Kar & Nanda, 2011). The

authors identified three prominent factors segregated as

quality conscious, time saving conscious and price

conscious in the study conducted in Lucknow on shopping

mall behaviour (Kaushal & Sanjay, 2011). A desire for a

frictionless shopping experience signifies fast shopping,

getting the right products easily, and shopping

convenience. (Malik, 2012).

Need of the Study

A number of studies have been conducted in India and

abroad. Researchers have carried out studies in several

cities and regions of India but we lack researches

conducted in the state of Jharkhand which leave view of

consumers still unturned in this part of India. The

importance of such studies could be of help to Multibrand

organised retailers in India apart from those in

Jharkhand.This study would be of help to the retailers in

drawing insights about the factors considered most

important by retail buyers. It would be of good help to the

organised retailers in framing their strategies with the

changing retail market around these factors.

Research Methodology

This study is based on the primary data collected through

questionnaires. The survey has been conducted in the city

of Jamshedpur during July - December, 2012. A total of

125 questionnaires were distributed to retail customers

out of which 87 filled questionnaires were received.

Before finalising the questionnaire a pilot study was

conducted to legitimise it. The opinion of experts was also

taken before arriving at the final questionnaire. In this

research we focus upon the factors which influence the

purchase from Organised Multibrand retail outlets. A

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A Study of Preference Factors of Consumers in Multi-Brand Retailing

05

total of 32 statements were finally taken which reflect the

various attributes influencing purchase from Organised

Multibrand retail outlets. The respondents were asked to

rate the statements on a five point likert scale. SPSS 17

was used to identify the relative impact levels and the

KMO and Bartlett’s test of Sphericity.The data reduction

technique of Factor Analysis was used to identify the

factors influencing the purchase from organised retail.

Discussion on Research Findings

Cronbach’s Alpha: A value of 0.839 for Croanbach Alpha

indicates the reliability and validity of the construct. The

invalid data was found to be 0.7% only.

KMO Measure of Sampling Adequacy: As the KMO test

value is 0.758 which is more than 0.5 it indicates that we

can go for factor analysis.

Bartlett’s Test of Sphericity: Since the Chi-Square value is

higher, i.e.- 2486.467 and significance level is 0.000 which

means we can definitely go for factor analysis.

Table 6 shows the 32 variable preferences for purchasing

from Organised Multibrand retail outlets grouped under

ten extracted factors. The first and second factor consists

of five variables, the third, fourth, fifth, sixthfactor

consists of 3 variables,theseventh, eighth and ninth

factors consist of 2 and the tenth factors consist of a single

variable. Three Variables were not considered in the

factor clubbing because they could not reach the factor

loading criteria of 0.5. These three factors were ‘Free

packaging’, ‘I was attracted by advertisements and sales

promotions’ and ‘Membership cards offer additional

benefits’.The extracted ten factors have been clubbed and

named as shown in Table 5. The extracted factors support

the work of researchers done earlier. Let us have a brief

look on the extracted factors as named.

Basics: Customers have rated it as the most important

factor for purchasing from Multibrand retail outlets. Basic

facilities like trolleys for a hassle free purchase, spacious

trial rooms which are adding comfort in shopping,

washroom facility which add convenience, neat and clean

staff with a positive mood to support the customers are

provided by the organised retailers. Most of these

facilities lack with the unorganised retailers. Upsurging

Consumerism, changing lifestyle, increasing access to

information and ever improving technology, made the

last decade observe an enormous development in the

retail sector around the globe (Lahiri&Samanta, 2010).

The Changing lifestyles, food and eating habits of

consumers have contributed largely to the growth and

development of organised food and grocery retail formats

in India (Prasad & Aryasri, 2008). The taste and

preferences are fast changing. The retail sector in India is

witnessing a tremendous growth with the changing

demographics and lifestyles. An improvement could be

seen in the quality of life of urban Indian consumers

(Krishnan & Venkatesh, 2008). With the boom in Indian

economy and the rise in the income Indian customers are

demanding for the best facilities. Authors are of the view

that ‘Basics’ should be delivered for a better selling

experience and the same has been supported by the

present study also.

Brand: In this information age brand management is the

key to the success of organisations in the markets. The

battle in the marketplace is between brands and not

between organisations. Consumers buy brands and these

brands generate income. So, developing a strong brand

becomes very necessary for organisations (Ramaswamy

& Namakumari, 2007). This can be done by identifying

your competitive advantage and regularly advertising the

same (Banerjee & Banerjee, 2000). In this transition

phase of retailing it has gained a greater importance

because a number of new brands are entering the Indian

retail market. In the era globalisation and liberalisation

the choice of Indian customers is shifting from traditional

tailor-made to readymade dresses although they are

costlierThe reason for this shift is due to the wide variety

and tempting designs. The market is delivering products

with almost similar features like name (with a single word

difference in spelling), colour, packaging, etc. brand

management plays a more important role for the survival

and success of products and organisations(Lalitha, Kumar,

& Padmavalli, 2008). The present research output also

support the work of research studies done earlier.

Variety: Variety has emerged as an important factor in our

results.Product range and multiple choices act as

important determinants for preference of Mega Marts

(Sonia, 2008).This has increased their customer base

which needs to be addressed with the right mix of

merchandise (Krishnan & Venkatesh, 2008).Retailers

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Prastuti: Vol. 5, No. 1, July 2016

06

must have the right assortment of products which should

be sold in consistency with the overall strategy.(Das,

2011). Organised retailers should offer a better product

mix and assortment strategy to target the consumers

according to their income group (Ramanathan & Hari,

2011).Variety has been regularly advocated by authors as

an important driver for attracting customers to stores.

Our research results also support the same for the

organised retailers.

Service: A good service has its own benefits for any

business be it a retail business or any other. Literature

suggests that customer-contact employee interaction

affects the overall service quality(Mittal & Lassar, 1996),

customer satisfaction (Spies, Heese, & Loesch, 1997),

customer loyalty(Beatty, M, Colema, Reynolds, & Lee,

1996), and customer purchase intentions(Macintosh &

Lockshin, 1997).Good service and good selling help in

retaining, enhancing and cementing relationship

resulting in relationship management which finally leads

to competitive advantage for the firm (Kar & Nanda,

2011). Good Customer Service attracts more customers

and increases consumer satisfaction (C & Hariharan,

2008). Efforts to stay in touch with customers are

identified as key determinants of relationship

enhancement in retailer-customer relationship (Bajaj,

Tuli, & Srivastava, 2005). Earlier studies have revealed

that service is an important differentiator in the success of

business and the same have been justified through the

result of factor analysis.

Shopping Experience: A good shopping experience has

helped in increasing traffic towards the organised retail

outlets. Authors viewed that shopper’s attach

importance to ambience and facilities at the store (Sinha,

Banerjee, & Uniyal, 2002).Mall atmosphere and decor

highly appeal the customers (C & Hariharan, 2008). Store

ambience does have an effect on sales (Gupta, Heng, &

Sahu, 2009). The modern retail formats have attracted

more customers because they are mostly providing

various facilities in their stores. Hassle-free parking

attracts more customers. (C & Hariharan, 2008). The mall

managers should highlight facilities of anchor stores and

entertainment along with parking facility, easy

accessibility, pleasant ambience, spacious floors and food

courts, elevators, etc. to create an attractive image so that

customer traffic could be enhanced and result in more

sales for retailers (Khare & Prakash, 2010). Giant malls

offer a unique experience to the customers during

shopping regardless of their status, where people with

less purchasing power also throng the stores.Malls are

built-up with this idea as their USP to deliver a complete

experience (Banerjee & Dasgupta, 2010). Organised

retailer should implement various value-added services

to provide pleasant shopping experiences to consumers

(Ramanathan & Hari, 2011).As could be seen that

shopping experience is mentioned by authors as an

important driver for increasing customer traffic and sales

the result of the present study also justifies it.

Price: Since sales volume is dependent on price to an

extent, the latter becomes the key to the revenue for an

organisation. Price is also the most important parameter

in determining the profitability of the business

(Ramaswamy & S, 2007). Retailers have to adjust with the

razor thin margins because the Indian customers are

highly price sensitive (Vijayraghavan & Ramsurya, 2007).

Retailers also need to sharpen their pricing skills in order

to survive in this competitive environment (Banerjee &

Banerjee, 2000). Products should be priced in such a way

that it achieves profitability for the retailer and

satisfaction for the customers. Pricing should be such that

it supports the positioning of the organisation and

generates the expected return on investment (Berman &

Evans, 2007). Prices and product displays are the main in-

store stimuli for the big size retail stores for impulse

purchases (Gupta, Heng, & Sahu, 2009). Irrespective of

how strong the brand relationship is customers do go for

price comparisons (Sahay & Sharma, 2010). It could be

observed from the above studies that price is one of the

crucial determinants of sales and the same has also been

reflected in the present study results.

Convenience: Location convenience is always been

preferred by customers (Kar & Nanda, 2011). Authors are

of the view that factors like apathy, convenience,

enjoyment, shopping as a routine activity and as an event

govern the shopping attitudes of customers

(Chetthamrongchai & Davies, 2000). Convenient location

of shops plays an important role in attracting customers

and thus increases sales (Lalitha, Kumar, & Padmavalli,

2008). The location of the retail outlets plays an important

role in attracting customers and adding convenience (C &

Hariharan, 2008). In a study on shopping orientations in

the evolving Indian market the author observed that the

shopper’s preference for a store which is near and could

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be approached easily and frequently poses a big

challenge in the present retail scenario (Sinha, Banerjee,

& Uniyal, 2002). Convenience has been expressed by

authors earlier as an important factor in attracting

customers and increasing sales and the present study also

justifies it through the extracted factors.

Superior Sales Staff: The factor has been named as

Superior Sales Staff because it is a clubbing of variables

‘courteous staff to customers’ and ‘personal attention to

customers’. Employees have been considered as the best

resource for any type of organisations and the factor

analysis is also highlighting it. Managers and marketers of

retail store services in particular and service organisations

in general should recognise the essence sales force

management practices to serve the employees as well as

customers satisfactorily in their efforts to deliver superior

value to customers and manage customer relationship

more effectively (Prasad & Aryasri, 2008). Efforts to stay in

touch with customers are identified as key determinants

of relationship enhancement in retailer-customer

relationship (Bajaj, Tuli, & Srivastava, 2005). The authors

indicate that alert staff helps in building this relationship

by being courteous and giving personal attention to the

customers.

Superior Store Amenities: The factor has been given the name Superior store amenities because it is representing a clubbing of the factors ‘safe trial rooms’, ‘shopper friendly store design’ and ‘child care facility’. These variables have been considered by earlier researchers also. The authors observed that shopper does attach importance to ambience and facilities at the store (Sinha, Banerjee, & Uniyal, 2002). The objectives of the retailers are to attract more number of customers through different extra benefits and store amenities are one of them which may lead to attract customers (Das & Kumar, 2009). Authors have also highlighted the role of safe trial rooms in gaining the confidence of customers for the stores (Kar & Nanda, 2011). The present study also views superior store amenities as an important factor in shifting the preference of customers towards the organised retail and thus goes in accordance with the view of earlier researchers.

One Stop Shopping: The wide assortment of products arranged neatly in a sequence impresses the customers. The authors were of the view that the retailers delivering the fun experience should offer wide assortment and an ambience in which the shopper’s would like to spend more time (Sinha, Banerjee, & Uniyal, 2002). The more

time the shopper spends in the store, the more is the chance of purchasing by them. The organised retailers has not only taken care for this rather they have also tried that the customers do their purchasing in less time with ease and comfort (Das, 2011). The Indian customers are very busy in their office & house hold activities due to which they are in lack of time particularly in big cities. The facility of One Stop shopping has come as relief and convenience for them. It has led to the preference of modern formats of retail and malls in India. The present research study also supports the importance of One Stop shopping in the preference of organised retail.

Recommendations

Based on the results of the present research the following suggestions could be made:

• Instead of having a uniform strategy throughout the stores in India organised retailers should try to customise their products to the local needs which are unique. This could be achieved by havinga deeper insight about consumer preferences.

• Organised retailers should go for a sustainable long-term perspective in India.

• Out of the extracted ten factors the factor BASICS has emerged as the most important factor which needs to be properly focussed by organised retailers.

Limitations

As all studies have suffers limitations the present study also has certain limitations. This analysis is based on the survey conducted in the city of Jamshedpur only. A larger sample and broader market coverage would help in generalising the results for the whole of India.

Future Scope of Study

• It would act as an important reference for researchers who would like to conduct similar type of study in other states of India.

• Future studies could be conducted on a more comprehensive basis by taking a larger sample and covering other parts of India.

A Study of Preference Factors of Consumers in Multi-Brand Retailing

07

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Prastuti: Vol. 5, No. 1, July 2016

08

Appendix

N %

Cases Valid Excluded Total

87 0 87

100.0 0.0 100.0

Table 2: Case Processing Summary

Table 3: Reliability Statistics

Cronbach’s Alpha N of Items

0.839 32

Table 4: KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

Bartlett’s Test of Sphericity Approx. Chi -Square DfSig.

.7582486.467

86

0.000

Table 5: Total Variance Explained

Component

Rotation Sums of Squared Loadings

Total % of Variance Cumulative % 1

4.145

12.953

12.953

2

3.385

10.578

23.531

3

3.044

9.513

33.043

4

2.496

7.801

40.844

5

2.326

7.269

48.113

6

2.203

6.885

54.999

7

2.075

6.483

61.481

8

2.041

6.380

67.861

9

1.934

6.043

73.904

10 1.521 4.753 78.657

Extraction Method: Principal Component Analysis.

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S. No. Factor Statement Factor Loading (>0.5)

Variance Naming of Factor

1 Personal Attention to customers

0.831

12.953

BASICS

Washroom facility

0.625

Good condition of trolleys

0.558

Neat Appearance of staff

0.808

Spacious trial rooms

0.850

2 Too many are coming here so I also came

-0.794

10.578

BRAND IMAGE

Outlets name carry added weightage

0.566

Buying here increases social recognition

0.733

Quality of goods provided are trustworthy from a renowned outlet

0.505

They inform in advance about new schemes through sms&/or email

0.678

3 Pleasant shopping because of good ambience 0.679 9.513 SHOPPING EXPERIENCEPleasant shopping because of good parking facility

0.846

Different payment options are available

0.542 4 Convenient timings of the stores

0.606

7.801

CONVENIENCE

It accommodates all class of buyers

0.676

The stores are conveniently located

0.749

5 Child care facility

0.768

7.269

SUPERIOR STORE AMENITIESShopper friendly store design

0.890

The trial rooms are safe

-0.543

6 Exchange facility

0.601

6.885

SERVICE

Customer Relationship Management practices are good

0.779

Free Alteration

0.757

7 Buying goods is cheaper here

-0.687

6.483

PRICE

I save money in bulk purchases

0.839

8 Better Assortment of Products

0.723

6.380

VARIETY

More options are available in products

0.710

9 Courteous Staff to Customers 0.558 6.043 SUPERIOR SALES STAFFPersonal Attention to Customers -0.826

10 Complete shopping under one roof 0.861 4.753 ONE STOP SHOPPING

A Study of Preference Factors of Consumers in Multi-Brand Retailing

09

Figure 1: Scree PlotTable 6: Grouped Variables for each of the Extracted Ten Factors

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Marketing Management, IX(4), 56-80.

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relationships. Journal of Retailing, 72(3), 223-247.

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Management. Pearson Prentice Hall.

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British Gricery Retailing. European Journal of

Marketing, 34(8), 875-890.

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Perception of Retail Customers-An Empirical Study in

Palakkad District. Indian Journal of Marketing, 24-

29.

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Proclivity for Hypermarkets: An Empirical Study. The

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101.

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Result in Store Loyalty? An Empirical Study in

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Management, VII(3), 6-33.

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Segmenting the market for food shoppers using

attitudes to shopping and to time. British Food

Journal, 102(2), 81-101.

A Study of Preference Factors of Consumers in Multi-Brand Retailing

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Page 17: Volume 05 July 2016 Number 01 - gla.ac.ingla.ac.in/public/uploads/filemanager/media/PRASTUTI---VOL-05.pdf · volume 05 july 2016 number 01 a study of preference factors of consumers

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Store Amenities on Buyer Behaviour: A Study of

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Customers' Reactions to Price Increases: Do

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Matter? . Journal of the Academy of Marketing

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• Kar, S. K., & Nanda, S. (2011). Relationship Marketing

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Management, X(4), 7-32.

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Factor Analysis Approach. Indian Journal of

Marketing, 53-64.

• Khare, A., & Prakash, S. (2010). Retailers in Malls:

Retailer's Preferences for Store Space in Indian Malls.

Journal of Retail & Leisure Property, 9(2), 125-135.

• Kokatnur, S. S. (2009, January). Consumers'

Perception of Private Brands: An Empirical

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Challenges of Merchandising Strategies in Fashion

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Manufactured Brands. Indian Journal of Marketing,

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Relationships and Store Loyalty: A Multi-level

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Marketing, 14(5), 487-497.

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Determination of Factors that Result in the Success of

the Organised Retail Sector in India and Analyzing its

Relative Importance (With Reference to Fast Food

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Journal of Marketing, 40-50.

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Mart. Services Marketing, 6(4), 38-48.

• Spies, K., Heese, F., & Loesch, K. (1997). Store

Atmospher, Mood and Purchasing Behaviour.

International Journal of Research in Marketing,

14(1), 255-171.

• Tillman, W. (2007). Shopping motivation revised: A

means-end chain analyt ical perspect ive.

International Journal of Retail and Distribution

Management, 35(7), 569-582.

• Venkateswaran, N., & Mahalakshmi, V. (2010,

September). The Effect of Store Image on Consumers'

Store Brand Purchase Frequency and Perceived

Quality of Store Brands Around Chennai City. Indian

Journal of Marketing, 12-19.

• Vijayraghavan, K., & Ramsurya, M. V. (2007, Feb 5).

Mom & Pop Happy Letting a Rich Tenant Takeover.

The Economic Times, p. 4.

• Yuping, L. (2007, October). The Long Term Impact of

Loyalty Programs on Consumer Purchase Behaviour

and Loyalty. Journal of Marketing, 71(4), 19-35.

www.atkearney.in/ accessed on 17/06/2016.

A Study of Preference Factors of Consumers in Multi-Brand Retailing

13

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This paper emphasizes on the disclosure practices of selected Indian and U.S banks. Four banks have been selected from each country on the basis of net worth and market capitalization as on 1st April 2010 and five years study period have been considered i.e. 2010- 2015. It has been observed from the analysis that among the selected Indian banks, Bank of Baroda disclosed information in its annual report while in case of U.S. The Bank of New York and Mellon disclosed maximum number of information in its annual report.

Keywords: ICAI, SEBI, RBI, NPA, SEC, Listing Agreement Clause 49

A Comparative Studyof Disclosures Practices ofSelected Indian and U.S. Banks

Abstract

Introduction

In recent years, the scope of disclosure practices have

been widely increases day by day and now this practices

is adopted by various banking companies for their

accountability and transparency of their sound banking

system because there are large number of financial

scandals cases are happened, In order to prevent from

these scandals there are various bodies in different

countries provide various norms of Financial Reporting

and Disclosure practices of banking companies in India

are regulated by Companies Act 1956, New Companies

Act 2013, the Banking Regulation Act 1949, the rules of

SEBI and the guidelines of RBI as well as the

recommendation of ICAI (Institute of Chartered

Accountant in India). In U.S SEC (The Securities and

Exchange Commission), AICPA The American Institute of

Certified Public Accountants and others. These

regulatory bodies are working there. It is observed that

pattern of disclosure practices are entirely different in

different countries. This study also investigated that

quality as well as quantity of disclosures practices of

different banking companies and to see that what

extend they disclosed information considering the

existing Banking Act, rules and recommendation &

guidelines of various professional or regulatory bodies.

In addition to this researcher also conduct a comparative

study among these selected companies of different

countries.

Review of Literature:

This is an essential aspect of an investigation is a review

of the related literature which is general prospective

survey of previous researches pertaining to one’s

problem. It is obviously imprudent and wasteful to

proceed in any study without knowing what has been

done before. The literature in any field forms foundation

upon which all future is built. The following studies have

been reviewed for this purpose (Christian Wagner

(2006), Mohammed Hossain (2008), M.L. Dutt (2012),

Mehedi Hasan Tuhin (2013)).

Ø Christian Wagner (2006), “Determinants of

Operational Risk Reporting in the Banking

Meenakshi Chawla* Prof. Pramod Kumar**

*Research Scholar, Department of Accountancy & Law, Faculty of Commerce,DayalBagh Educational Institute (Deemed University) Dayalbagh Agra**Head, Accountancy and Law & Dean Faculty of CommerceDayalBagh Educational Institute (Deemed University), DayalBagh Agra.

14

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Industry” Motivated by the recognition of

operational risk management as being crucial

for banks and the importance of adequate

reporting for enhancing market discipline, the

present paper investigates operational risk

disclosure practices in the 1998 to 2001 period.

Whereas reporting was not mandatory at that

time, disclosure increased in both extent and

content.

Ø Mohammed Hossain (2008), “The Extent of

Disclosure in Annual Reports of Banking

Companies: The Case of India” This study is an

empirical investigation of the extent of both

mandatory and voluntary disclosure by listed

banking companies in India. It also reports the

results of the association between company-

specific attributes and total disclosure, i.e.,

mandatory and voluntary, of the sample

companies.

Ø M.L. Dutt (2012), “The Extent of Disclosure

Code of Corporate Governance in India: A

Comparative Study of Public and Private Sector

Banks” Banking sector is critical for any

economy in the world and Indian banking

sector contribution is significant in the growth

of Indian economy, but time and again the

frauds reported in the banking sector raises a

question on our corporate governance

practices followed by the banks

Ø Mehedi Hasan Tuhin (2013), “Disclosure of Non

Financial Information Voluntarily in the Annual

Report of Financial Institutions: A Study of

Listed Banks of Bangladesh” The aim of this

paper is to measure the extent of disclosure of

voluntary nonfinancial information in the

annual reports of listed banks in Bangladesh. An

effort has also been made to identify the

company specific factors responsible for

disclosing voluntary nonfinancial information

in addition to mandatory information.

Objectives

1. To test the Impact of market micro structure

variables on the disclosure practices of Indian

and U.K. Banks.

2. To make a comparison of disclosure practices of

Indian and U.K. Banks.

Methodology

(I) Selection of Sample

This Study specifically focuses on the banking sector of

India and U.K on the basis of Net worth as on 1st April

2010 exceeding worth Rupees 2000 crores and On the

basis of Market Capitalization as on 1st April 2010

exceeding worth Rupees 2500 Crores

(II) Scoring Of Disclosure Index

Generally weighted and unweighted disclosure Index is

used to measure disclosure level in these studies. The

weighted approach provides weights through tick that

means items of disclosed information and in unweighted

approach means blank column i.e. items are not

disclosed, this weighted and unweighted index prepare

according to importance given by researcher.

(III) Disclosure Index among various countries.

Analysis: - From the above table it has been observed that

total disclosures i.e. 206 have been divided into 19

headings, these data (Quantitative and Qualitative) have

been collected from the annual reports of the sample

Indian banks. The financial reporting and disclosure of

banking companies in India are regulated by Banking

Regulation Act 1949, Companies Act 1956, RBI

Guidelines, and Clause 49 Listing agreement, as well as

the recommendations of the Institute of Chartered

Accountant in India (ICAI).

Analysis: - From the above table it has been observed that

total disclosures i.e. 95 have been divided into 5 headings,

these data (Quantitative and Qualitative) have been

collected from the annual reports of the sample U.S

banks. The financial reporting and disclosure of banking

companies in U.S are regulated by SEC (The Securities and

Exchange Commission), AICPA The American Institute of

Certified Public Accountants.

(IV) HYPOTHESES

Ho1: There is no relationship between market micro

structure variables on the disclosure practices of Indian

and U.S. Banks.

15

A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

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Ho2: There is no difference between Disclosure practices

of Indian and U.S. Banks.

(V) Extent of Disclosure Practices of Selected Indian and

U.S Banks

Analysis: - It is clear from Table 1 that there are 206

disclosure items that must contain in every annual report

but among the selected Indian banks, Bank of Baroda

disclosed 66% information in its annual report. While in

case of State Bank of India and Punjab National Bank

disclosure percentage is 60.7%.

Ø U.S Disclosures

Analysis: - It is clear from Table 2 that there are 95

disclosures items that must contain in every annual report

but among the selected U.S banks, The Bank of New York

and Mellon disclosed 90.29 % information in their annual

report. Where in case of Wells Fargo & Company disclosed

is 79.82%

(VI) Comparison of Disclosure Index between India and

U.S

(VII) Model Development

To Test the gauge of relationship between micro structure

variables and Disclosure Practices of Indian and Foreign

Banks a simple OLS (Ordinary Least Square) model was

applied. The functional relationship between variable and

proxies can be expressed as-

DP =f (micro structure variables)

The model employed in the study includes the following

DP = β0+ β1Net Profit+β2SP+ β3NPA+ β4ROE...+µ

OLS Model for Indian Banks

1. SBI Bank

2. PNB

3. AXIS Bank

4. BOB

Analysis: - the result of above tables it exert that there is a

positive and significant impact of micro structure

variables (except Net profit) on disclosure practices in SBI

and Axis bank but opposite relationship in PNB i.e.

negative & significant impact of micro structure variables

(except net profit) on disclosure practices. In case of Bank

of Baroda two variables i.e. Net profit & ROE has negative

and significant impact on disclosure practices and vice

versa with NPA & ROE.

OLS Model of U.S. Banks

1. American Express

2. Bank of New York and Mellon

3. Goldman’s Sachs Group

4. Wells Fargo and Company

Analysis: - The result of above tables it exert that there is a

positive and significant impact of micro structure

variables on Net Profit and NPA except Net Profit of

Goldman’s Sachs Group on disclosure practices but

opposite relationship i.e. negative and significant

relationship with staff productivity (except Bank of New

York and Mellon) and ROE except (Goldman’s Sachs Group

and Wells Fargo and Company.

(VIII) Descriptive Statistics

Indian Banks

1. SBI Bank

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 10826.80, Staff Productivity is 4.984000, NPA

39466.20, ROE with 13.53400 and Disclosures Practices is

202.40 followed by the maximum Net Profit is 14105.00,

Staff Productivity is 6.450000, NPA 61605.00, ROE with

15.94 and Disclosures Practices is 206 and minimum

prices of Net Profit is 8265.000, Staff Productivity is

3.850000, NPA 19535.00, ROE with 10.49 and Disclosures

Practices is 200. S.D is very high in case of net profit, Staff

productivity and NPA comparative to others which

explain that there is high volatility in its values. From the

skewness measure we found that all the variables except

ROE are negatively skewed. In case of kurtosis, all

variables are positively skewed thus illustrating that all

have peaked distribution comparative with normal

distribution and Jarque-Bera is showing that all the

variables are normally distributed.

16

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2. PNB Bank

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 4262.600, Staff Productivity is 10.81200 , NPA

9984.913, ROE 18.02400 with and Disclosures Practices is

202.40 followed by the maximum Net Profit is 4884.000 ,

Staff Productivity is 12.83000, NPA 18880.06 , ROE with

24.59000 and Disclosures Practices is 206 and minimum

prices of Net Profit is 3343.000, Staff Productivity is

8.080000 , NPA 3214.410 , ROE with 9.690000 and

Disclosures Practices is 200. S.D is high in case of net

profit, Staff productivity and NPA comparative to others

which explain that there is high volatility in its values.

From the skewness measure we found that all the

variables are positively skewed except Staff Productivity

and ROE. In case of kurtosis, all variables are positively

skewed thus illustrating that all have peaked distribution

comparative with normal distribution and Jarque-Bera is

showing that all the variables are normally distributed.

3. AXIS Bank

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 4308.466, Staff Productivity is 14.06400 ,

NPA 2052.710, ROE with 19.99600 and Disclosures

Practices is 202.40 followed by the maximum Net Profit is

6217.670, Staff Productivity is 15.42000 , NPA 3146.410 ,

ROE with 21.22000 and Disclosures Practices is 206 and

minimum prices of Net Profit is 2514.530, Staff

Productivity is 11.63000, NPA 1318.000 , ROE with

18.23000 and Disclosures Practices is 200. S.D is very

high in case of net profit, Staff productivity and NPA

comparative to others which explain that there is high

volatility in its values. From the skewness measure we

found that all the variables are positively skewed except

Staff Productivity and ROE. In case of kurtosis, all variables

are positively skewed thus illustrating that all have peaked

distribution comparative with normal distribution and

Jarque-Bera is showing that all the variables are normally

distributed.

4. BOB

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 4265.754 , Staff Productivity is 10.12200, NPA

5450.918, ROE with 18.06000 and Disclosures Practices is

202.40 followed by the maximum Net Profit is 5006.960 ,

Staff Productivity is 11.87000, NPA 11875.90 , ROE with

22.19000 and Disclosures Practices is 206 and minimum

prices of Net Profit is 3058.330 , Staff Productivity is

7.890000, NPA 1842.920 , ROE with 13.00000 and

Disclosures Practices is 200. S.D is very in case of net

profit, Staff productivity and NPA comparative to others

which explain that there is high volatility in its values.

From the skewness measure we found that all the

variables are positively skewed except Staff Productivity

and ROE. In case of kurtosis, all variables are positively

skewed thus illustrating that all have peaked distribution

comparative with normal distribution and Jarque-Bera is

showing that all the variables are normally distributed.

U.S. Banks

1. American Express Bank

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 4192.60, Staff Productivity is 34000.20, NPA

822.400, ROE with 24.14 and Disclosures Practices is 97.0

followed by the maximum Net Profit is 5359.00, Staff

Productivity is 41273.00, NPA 1201.00, ROE with 27.80

and Disclosures Practices is 99 and minimum prices of Net

Profit is 2130.00, Staff Productivity is 22238.00, NPA

428.000, ROE with 14.600 and Disclosures Practices is 95.

S.D is very high in case of net profit and Staff productivity

as comparative to others which explain that there is high

volatility in its values. From the skewness measure we

found that all the variables are negatively skewed. In case

of kurtosis, leptokurtic in nature means selected variables

has a high probability for negative and extreme value and

Jarque-Bera is showing that all the variables are normally

distributed.

17

A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

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2. Bank of New York and Mellon

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 1823.600, Staff Productivity is 5484.200, NPA

339.0, ROE with 16.580 and Disclosures Practices is 92.6

followed by the maximum Net Profit is 2647.00, Staff

Productivity is 6019.00, NPA 550.00, ROE with 25.600 and

Disclosures Practices is 95 and minimum prices of Net

Profit is -813.000, Staff Productivity is 4700.0, NPA

156.00, ROE with 0.00 and Disclosures Practices is 90.

3. Goldman’s Sachs Group

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 8308.80, Staff Productivity is 33360.00, NPA

27977.20, ROE with 68443.60 and Disclosures Practices is

92.6 followed by the maximum Net Profit is 13395.00,

Staff Productivity is 35700.00, NPA 41958.00, ROE with

71267.00 and Disclosures Practices is 95 and minimum

prices of Net Profit is 4212.00, Staff Productivity is

32400.00, NPA 18715.00, ROE with 63757.00 and

Disclosures Practices is 90. S.D is very high in case of net

profit and NPA as comparative to others which explain

that there is high volatility in its values. From the

skewness measure we found that all the variables are

positively skewed except ROE and Disclosure Practices. In

case of kurtosis, leptokurtic in nature means selected

variables has a high probability for negative and extreme

value and Jarque-Bera is showing that all the variables are

normally distributed.

4. Wells Fargo and Company

Analysis:

From the table above in which descriptive values of all the

variables have been calculated shows that the average

Net Profit is 16256.20, Staff Productivity is 4666.40, NPA

25981.40, ROE with 58.460 and Disclosures Practices is

92.6 followed by the maximum Net Profit is 21878.00,

Staff Productivity is 5033.00, NPA 32251.00, ROE with

61.00 and Disclosures Practices is 95 and minimum prices

of Net Profit is 12275.00, Staff Productivity is 4348.00,

NPA 19605.00, ROE with 55.30 and Disclosures Practices

is 90. S.D is very high in case of net profit and NPA as

comparative to others which explain that there is high

volatility in its values. From the skewness measure we

found that all the variables are positively skewed except

NPA, ROE and Disclosure Practices. In case of kurtosis,

leptokurtic in nature means selected variables has a high

probability for negative and extreme value and Jarque-

Bera is showing that all the variables are normally

distributed.

Conclusion

Disclosure practices in banks become very important to

decision makers in the era of today’s knowledge-based

economy. As a result, each banks takes attempt to

disclose its information to insiders and outsider decision

makers. In fact, it is becoming an integral part of annual

report. The current study shows disclosure practices of

selected Indian and U.S banks and considered some micro

structure variables i.e. Net profit, Staff Productivity, Non

Performing Assets and ROE in assessing their effect on the

disclosure practices and reaches the conclusion that

these micro structure variables are significant affect on

disclosure practices.

References:

• Tuhin, Mehedi Hasan (2014), “Does Size Affect the

Non-Mandatory Disclosure Level In The Annual

Reports Of Listed Banks In Bangladesh?”

• Mehedi Hasan Tuhin (2013), “Disclosure of Non

Financial Information Voluntarily in the Annual

Report of Financial Institutions: A Study of Listed

Banks of Bangladesh”

• M.L. Dutt (2012), “The Extent of Disclosure Code of

Corporate Governance in India: A Comparative

Study of Public and Private Sector Banks”

• Mohammed Hossain (2008), “The Extent of

Disclosure in Annual Reports of Banking Companies:

The Case of India”

• Christian Wagner (2006), “Determinants of

Operational Risk Reporting in the Banking Industry”

18

Prastuti: Vol. 5, No. 1, July 2016

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• Prof Pankaj Madani (2006), “Corporate Governance

and disclosure practices of firms and nature of

Industry: An Empirical Study from Indian

Perspective.”

• Amitabh Joshi (2006), “Disclosure Practices in

Corporate Reporting of Public sector financial

Institutions (Psfs)

• Steven Globerman (2005), “Harmonization of

Voluntary Disclosure Practices by Japanese

Companies

• Giacomo Boesso (2003), “How to Assess the Quality

of Voluntary Disclosures”

• Agarwal, R . N. (2003). “Capital Market

Development, Corporate Financing Pattern and

Economic Growth in India. Institute of Economic

Growth, Delhi, India, Discussion Paper,

• Coombs, H. M., and Tayib, M. (2000)." A

Comparative Study of Local Authority Financial

Reports between the UK and Malaysia".

• Nier, E., and Baumann, U. (2000). “Market Discipline

and Financial Stability: Some Empirical Evidence.”

19

A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

Table 1: Categories of Disclosure Index

(In case of India)

S.No.

INDIA

No. of items

1.

Balance sheet items

15

2.

Profit and Loss Account Items

07

3.

Board’s Report

06

4.

Business Responsibility

Report

05

5.

Management Discussion and Analysis

12

6. RBI Guidelines 29

7. Background about the bank/general corporate information 06

8. Corporate Strategy 03

9. Financial Performance 13

10. General Risk Management 07 11. Credit Risk Exposure 07 12. Market Risk Exposure 04 13.

Interest Rate Risk

02

14.

Currency Risk

03

15.

Liquidity Risk Exposure

03

16.

Accounting Policy Review

02 17.

Key Non-financial Statistics

08

18.

Corporate Social Disclosure

04

19.

Others

07

Source: Author

(III) Disclosure Index among various countries.

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20

Prastuti: Vol. 5, No. 1, July 2016

Table 2: Categories of Disclosure Index

(In case of U.S)

S.No U.S No. of items

1. Financial Summary 38

2. Management’s Discussion and Analysis 19

3. Controls and Procedures 04

4. Financial Statement 07

5.

Notes to Consolidated Financial Statements

26

Source: Author

(V) Extent of Disclosure Practices of Selected Indian and U.S Banks

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A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

U.S Disclosures

S. No. BASIS INDIA U.S

1. Number of Disclosures 206 95

2. Number of Sub Heads 19 5

3. Detailed of Disclosing Information More Detailed Less Detailed

4. Working Bodies in Countries 6 5

(VI) Comparison of Disclosure Index between India and U.S

Variable

Coefficient

Std. Error

P-Value

c

12.8773

0

0.0000

Net Profit

-1.19032

0

0.0000

SP

1.049234

0

0.0000

NPA 0.14997 0 0.0000

ROE

0.087107

0

0.0000

Multiple R

Adjusted R-squared

1

65535

R-

squared

Standard Error

1

0

OLS Model for Indian Banks1. SBI Bank

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Prastuti: Vol. 5, No. 1, July 2016

Variable

Coefficient

Std. Error

P-Value

C

4.972642

0

0.0000

Net Profit

0.775438

0

0.0000

SP -0.48201 0 0.0000

NPA -0.26813 0 0.0000

ROE -0.91023 0 0.0000

Multiple R

Adjusted R-squared

1 65535

R-

squared

Standard Error

1

0

2. PNB

Variable

Coefficient

Std. Error

P-Value

c

3.649901

0

0.0000

Net Profit

-0.28587

0

0.0000

SP 0.057415 0 0.0000

NPA 0.353249 0 0.0000 ROE 0.404046 0 0.0000

Multiple R

Adjusted R-squared

1 65535

R-

squared

Standard Error

1

0

3. AXIS Bank

Variable

Coefficient

Std. Error

P-Value

c

6.627975

0

0.0000

Net Profit

-0.22985

0

0.0000

SP 0.22871 0 0.0000

NPA 0.024227 0 0.0000

ROE -0.04502 0 0.0000

Multiple R

Adjusted R-squared

1 65535

R-

squared

Standard Error

1

0

4. BOB

Variable

Coefficient

Std. Error

P-Value

c

4.31062648 0

0.0000

Net Profit

0.07920285 0

0.0000

SP -0.0203447 0 0.0000

NPA 0.00602017 0 0.0000

ROE -0.0700787 0 0.0000

Multiple R Adjusted R-squared

1 65535

R-

squared Standard Error

1 0

OLS Model of U.S. Banks1. American Express

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A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

Variable

Coefficient

Std. Error

P-Value

c

76.15120556 0

0.0000

Net Profit

0.011535485 0

0.0000

SP 0.001985869 0 0.0000

NPA 0.025261016 0 0.0000

ROE -1.450042532 0 0.0000

Multiple R Adjusted R-squared

1 65535

R-

squared Standard Error

1 0

2. Bank of New York and Mellon

Variable

Coefficient

Std. Error

P-Value

c

79.18287882 0

0.0000

Net Profit

-0.000513838 0

0.0000

SP -0.002397455 0 0.0000

NPA 0.000291839 0 0.0000

ROE 0.001307657 0 0.0000

Multiple R Adjusted R-squared

1 65535

R-

squared Standard Error

1 0

3. Goldman’s Sachs Group

Variable Coefficient Std. Error P-Value

c 110.5062 0 0.0000

Net Profit 0.000915 0 0.0000

SP -0.00456

0

0.0000

NPA 0.000174

0

0.0000

ROE -0.27393 0 0.0000

Multiple R

Adjusted R-squared

1

65535

R-

squared

Standard Error

1

0

4. Wells Fargo and Company

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Prastuti: Vol. 5, No. 1, July 2016

(VIII) Descriptive StatisticsIndian Banks

1. SBI Bank

NETPROFIT

STAFF

PRODUCTIVITY

NPA

ROE DISCLOSURE

PRACTICES

Mean

10826.80

4.984000

39466.20

13.53400

202.4000

Median

10891.00

4.850000

39676.00

14.04000

200.0000

Maximum 14105.00 6.450000 61605.00 15.94000 206.0000

Minimum 8265.000 3.850000 19535.00 10.49000 200.0000

Std. Dev. 2282.901 0.979020 17498.52 2.029453 3.286335

Skewness 0.341071 0.470851 0.089561 -0.465433 0.408248

Kurtosis 1.918735 2.163272 1.522872 2.213043 1.166667

Jarque-Bera 0.340511 0.330608 0.461248 0.309544 0.839120

Probability

0.843449

0.847636

0.794038

0.856610

0.657336

Sum

54134.00

24.92000

197331.0

67.67000

1012.000

Sum Sq. Dev.

20846545

3.833920

1.22E+09

16.47472

43.20000

Observations 5 5 5 5 5

NETPROFIT STAFF

PRODUCTIVITY NPA ROE DISCLOSUREPRA

CTICES

Mean 4262.600 10.81200 9984.913 18.02400 202.4000

Median 4433.000 11.32000 8922.590 18.52000 200.0000

Maximum 4884.000 12.83000 18880.06 24.59000 206.0000

Minimum 3343.000 8.080000 3214.410 9.690000 200.0000

Std. Dev. 637.2459 1.795542 7494.481 5.867383 3.286335

Skewness -0.501331 -0.565223 0.237279 -0.344809 0.408248

Kurtosis 1.775591 2.195134 1.337799 1.854058 1.166667

Jarque-Bera 0.521772 0.401191 0.498020 0.372657 0.839120 Probability 0.770369 0.818243 0.779572 0.830001 0.657336

Sum 21313.00 54.06000 39939.65 90.12000 1012.000 Sum Sq. Dev. 1624329. 12.89588 1.69E+08 137.7047 43.20000 Observations 5 5 4 5 5

2. PNB Bank

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25

A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

3. AXIS Bank

NETPROFIT

STAFF

PRODUCTIVITY

NPA

ROE

DISCLOSURE

PRACTICES

Mean 4308.466 14.06400 2052.710 19.99600 202.4000

Median 4242.210 14.35000 1806.300 20.13000 200.0000

Maximum 6217.670 15.42000 3146.410 21.22000 206.0000

Minimum 2514.530 11.63000 1318.000 18.23000 200.0000

Std. Dev. 1455.386 1.430675 727.7107 1.107962 3.286335

Skewness 0.096806 -1.121027 0.611514 -0.726856 0.408248

Kurtosis 1.736795 2.876403 1.985306 2.497055 1.166667 Jarque-Bera 0.340244 1.050434 0.526126 0.492965 0.839120 Probability 0.843562 0.591427 0.768694 0.781545 0.657336

Sum 21542.33 70.32000 10263.55 99.98000 1012.000 Sum Sq. Dev.

8472590.

8.187320

2118251.

4.910320

43.20000

Observations

5

5

5

5

5

NETPROFIT STAFF

PRODUCTIVITY NPA ROE DISCLOSURE

PRACTICES

Mean 4265.754 10.12200 5450.918 18.06000 202.4000

Median 4480.720 10.39000 3152.500 19.04000 200.0000

Maximum 5006.960 11.87000 11875.90 22.19000 206.0000

Minimum 3058.330 7.890000 1842.920 13.00000 200.0000

Std. Dev. 729.7009 1.448420 4338.605 4.103602 3.286335

Skewness -0.951220 -0.521793 0.663842 -0.242480 0.408248

Kurtosis 2.684030 2.429118 1.789569 1.354595 1.166667

Jarque-Bera 0.774816 0.294787 0.672476 0.613030 0.839120

Probability 0.678814 0.862954 0.714453 0.736007 0.657336 Sum 21328.77 50.61000 27254.59 90.30000 1012.000

Sum Sq. Dev. 2129853. 8.391680 75293972 67.35820 43.20000 Observations 5 5 5 5 5

4. BOB

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26

Prastuti: Vol. 5, No. 1, July 2016

U.S. Banks1. American Express Bank

NET PROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE

PRACTICES

Mean 4192.60

34000.20

822.400

24.1400

97.0000

Median

4482.00

35541.00

815.000

27.500

97.0000

Maximum

5359.00

41273.00

1201.000

27.800

99.0000

Minimum

2130.00

22238.00

428.000

14.600

95.0000

Std. Dev. 1251.80921 7329.64076 279.87729 5.6888487 1.58113883

Skewness -1.4352861 -1.2249591 -0.125208 -1.66862138 0.000000

Kurtosis 2.3139362 1.66550029 1.1375733 2.4450320 -1.20000

Jarque-Bera

0.809533

0.633659

0.112565

1.075595 0.352083

Probability

0.667133

0.728455

0.945272

0.584033

0.838583

Sum 20963.00

170001.00

4112.00

120.7000

485.000

Sum Sq. Dev.

1567026.3

53723633.7

78331.30

32.36300

2.50000

Observations 5 5 5 5 5

NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE

PRACTICES

Mean

1823.600

5484.200

339.0000

16.58000

92.60000

Median

2523.000

5726.000

341.0000

19.30000

93.00000

Maximum

2647.000

6019.000

550.0000

25.60000

95.00000

Minimum

-813.000

4700.000

156.0000

0.00000

90.00000

Std. Dev. 1484.0946 526.4348 149.76147 10.016087 2.50998008

Skewness -2.16240839 -0.8952453 0.3414351 -1.4875028 -0.19604278

Kurtosis 4.7164340 -0.2768331 -0.092533 2.3777580 -3.0309901

Jarque-Bera

1.760187

0.538717

0.261800

0.368998

0.352083

Probability

0.414744

0.763869

0.877305

0.831521

0.838583

Sum

2202536.80

277133.70

22428.500

100.3220

6.30000

Sum Sq. Dev.

1567026.3

53723633.7

78331.30

32.3630

2.50000

Observations 5 5 5 5 5

2. Bank of New York and Mellon

NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE

PRACTICES

Mean

8308.80

33360.00

27977.20

68443.60

92.60000

Median

7798.00

32900.00

26860.00

69516.00

93.00000

Maximum

13395.00

35700.00

41958.00

71267.00

95.00000

Minimum

4212.00

32400.00

18715.00

63757.00

90.00000

Std. Dev. 3289.7024 1355.7286 8866.00443 3011.05177 2.50998008

Skewness 0.7311238 1.8718779 1.06876966 -1.11876473 -0.1960427

Kurtosis 2.1512363 3.6270974 1.38807540 0.5728970 -3.03099017

Jarque-Bera

0.244958

1.315783

0.517181

0.622293

0.352083

Probability

0.884725

0.517942

0.772139

0.732607

0.838583

Sum

41544.000

166800.00

139886.00

342218.00

463.0000

Sum Sq. Dev.

10822142

1838000

78606034.7

9066432.8

6.30000

Observations 5 5 5 5 5

3. Goldman’s Sachs Group

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NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE

PRACTICES

Mean

16256.20

4666.40

25981.40

58.46000

92.60000

Median

15869.00

4651.00

25965.00

58.50000

93.00000

Maximum

21878.00

5033.00

32251.00

61.00000

95.00000

Minimum

12275.00

4348.00

19605.00

55.30000

90.00000

Std. Dev. 4175.617643 244.74027 4601.1015 2.0622802 2.509980

Skewness 0.4227996 0.4783146 -0.051074 -0.701480 -0.196042

Kurtosis -1.7143549 1.877201565 0.9513214 1.7879673 -3.030990

Jarque-Bera

0.492215

0.144470

0.122000

0.248240

0.352083

Probability

0.781838

0.930312

0.940823

0.883274

0.838583

Sum

81281.00

23332.00

129907.00

292.3000

463.0000

Sum Sq. Dev.

17435782.7

59897.8

21170132.8

4.253000

6.30000

Observations 5 5 5 5 5

27

A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks

4. Wells Fargo and Company

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The twenty-first century will be the century of knowledge, indeed the century of the intellect. Over the past 30 years, a number of major developments and transformations have taken

place in Indian markets. The choices available to Indian consumers have gone up drastically, be it the number of cars that people can choose from, the number of hospitals they have access to, or even the phones they use to connect to others or the Internet.

A nation’s ability to translate knowledge into wealth and social good through innovations and delivering on competitiveness will determine its future. Innovation and competitiveness are linked at a national level as reflected by the strong correlation between the scores of countries on the Global Innovation Index and the Global Competitiveness. Thus innovations hold the key to the creation as well as processing of knowledge

In looking at the needs for India’s next stage of growth, both industry and policymakers are focusing on strategies for fostering capacity for innovation. The link between innovation and competitiveness can be clearly demonstrated at a national level, and at a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly.

Addressing these competitiveness concerns will require acknowledging that innovation and intellectual property (IP) protection are linked, as today’s invention is tomorrow’s innovation. A stable intellectual property rights (IPR) regime is the foundation of a globally competitive nation, drawing in investments, specifically from FDI. Ultimately, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. It will also provide a stable framework for multinational companies wanting to enter India. Yet there are some critical impediments, which have hampered prospects for broader acceptance of IPR norms, and if addressed may enable greater economic cooperation between countries.

Intellectual Property Rights gallopingIndia the Success way: Study of Innovationand Competitiveness in the Indian Context

Abstract

This research paper will look at the broad contours of India’s current IPR regime and offers an assessment of the current situation as well as scenarios for continued advancement. It begins by looking at the overarching laws and protections afforded to specific types of IP in India. Then the present scenario has been examined, both theoretically as well as through data and analysis, to provide a quick assessment of India’s present IPR regime. The next section looks at the case study of fostering innovation in India’s pharmaceutical sector. Finally, this essay puts forth solutions for removing bottlenecks and helping India create a more robust and stable IPR regime.

Introduction

In looking at the needs for India’s next stage of growth, both industry and policymakers are focusing on strategies for fostering capacity for innovation. The link between innovation and competitiveness can be clearly demonstrated at a national level, and at a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly. With this in mind, a stable IPR regime is the foundation of a globally competitive nation, drawing in investments, specifically from FDI. Ultimately, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. It will also provide a stable framework for multinational companies wanting to enter India. Yet there are some critical impediments, which have hampered prospects

Mayank Sharma*

*Scholar (PGD Intellectual Property Rights – Indian Law Institute (Deemed University), New Delhi under Ministry ofLaw & Justice, GoI) & Assistant Professor , Institute of Management Studies (IMS-NOIDA), A8-B, IMS Campus,near Xerox office sector-62, Noida (UP), [email protected], 09971664997

28

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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context

for broader acceptance of IPR norms, and if addressed may enable greater economic cooperation between countries.

Over the past 30 years, a number of major developments and transformations have taken place in Indian markets. The choices available to Indian consumers have gone up drastically, be it the number of cars that people can choose from, the number of hospitals they have access to, or even the phones they use to connect to others or the Internet. All this is a result of market oriented policy reforms that India undertook in the early 1990s, which enabled the telecom, automobile, and retail banking revolutions.

Innovation and competitiveness are linked at a national level as reflected by the strong correlation between the scores of countries on the Global Innovation Index and the Global Competitiveness Index (highlighted by Figure 1). At a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly. This idea starts with understanding that India’s innovation is a varied reality and not a singular one, with Indian states growing at varying rates.

Yet despite these goals, the Global Competitiveness Report 2014–15 of the World Economic Forum shows India has dropped eleven places and is currently ranked 71 on a list of 144 countries considered for the study.1 Similarly, on the 2014 Global Innovation Index copublished by the World Intellectual Property Organization (WIPO), Cornell University, and Institut Européen d’Administration des Affaires shows that India is ranked 76th out of a total of 143 countries. In both of these rankings, India is placed somewhere in the middle,demonstrating the state of competitiveness and innovation in the country.

Addressing these competitiveness concerns will require acknowledging that innovation and intellectual property (IP) protection are linked, as today’s invention is tomorrow’s innovation. A stable intellectual property rights (IPR) regime is the foundation of a globally competitive nation, drawing in investments, specifically

3from FDI. With this in mind, it is appropriate to acknowledge that the patent ecosystem in India has undergone a change since liberalization in order to cater to growing pressure from foreign countries and domestic companies wanting to export to markets where specific IP standards are required. Accordingly, India embraced the

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the General Agreement on Tariffs and Trade (GATT), later renamed the World Trade Organization in 1994. This enabled India’s IP system and companies to align themselves with global IP standards and supported an increasing move toward harmonization of its IPR regime to global standards. This has aided companies from countries abroad to have a level playing field against companies in India, competing against each other in a range of industries where patents are crucial to gain competitive advantage over peers.

The IPR System in India

India’s IPR system is underscored by a number of policies, laws, and international agreements that shape protections for domestic rights holders as well as how the country views its global obligations. The origins of India’s

29

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Types of Protected IP and Their Coverage by Indian Law

Under Indian law, there are six discernible major categories of innovations that are eligible for IP protections.

4Patents. Patents are a set of exclusive rights that are granted to an inventor for making, selling, or using an invention. Three core pieces of legislation—the Patents Act of 1970, Patent Rules of 2003, and Patent Amendment of 2005—form the basis of patent law in India.

The Patents Act has provisions with respect to compulsory licensing, the government’s rights to fix prices for patentable goods, and use of some patents for the government only. The Patent Amendment also allows petitioners to file applications through electronic media (though the paper copy should be filed within one month).

Of note, over the course of several decades, India’s patent law has taken a range of different approaches to the question of “process patents”—that is, whether processes (in contrast with products/molecules/chemical compounds) may be patented. The 1970 law granted process patents, and under its provisions, patents for chemicals, medicines, and drugs were initially granted for a period of fourteen years. This situation changed with the enacting of the Patent Amendment Act of 2002 and Patent Rules, which extended the patent term for a period of twenty years (as well as adding several other provisions related to fees and other questions). Yet with the Patent Amendment of 2005, process patents were completely abolished. This amendment has specific implications for chemical and pharmaceutical industries in particular, which will be discussed later.

Trademarks. Trademarks are recognizable signs, designs, or expressions that identify the goods and services of a producer as being distinct from another. In India, the Trademark Act of 1999 was a redrafted version of the Trademark and Merchandise Marks Act of 1958 that extended trademarks to services as well. Coverage for trademarks in India is ten years from the date the application is first made, while a 2010 amendment to the act enabled stakeholders to take advantage of provisions in the Madrid Protocol, a treaty that protects trademarks in multiple countries through the filing of one application

5with a single office.

30

Prastuti: Vol. 5, No. 1, July 2016

4 Intellectual Property India, “The Patents Act, 1970,” http://ipindia.nic.in/ipr/patent/patent_Act_1970_28012013_book.pdf.This section also draws from N.K. Acharaya, Textbook of Intellectual Property Rights, 7th ed. (Hyderabad: Asia Law House, 2014).5 “Madrid Protocol Takes Effect in India,” World Intellectual Property Review, August 7, 2003, http://www.worldipreview.com/news/madrid-protocol-takes-effect-in-india.

IPR system date back to British colonial rule, when as a colony the state enacted various rules and enforcement mechanisms pertaining to IP rights. Post-independence, India retained elements of these structures while updating some guiding regulations and other bureaucratic structures. As India moved toward liberalization, privatization, and globalization in the 1990s and later, Indian policymakers made further adjustments to keep up with growing needs of domestic and international stakeholders. As a result, today the statutory foundation of India’s IPR regime is composed of a patchwork of key laws, governing bodies, and international agreements. These structures are further detailed below.

Importantly, patents have played a key role in changing national and global innovation landscape. The IPR trends during 2003-13, the approved rate of designs (87.38%) and trademarks registrations (65.54%) were significantly higher than the granted patents (22.06%) in India. Though, the patents (63.26%) have generated huge revenues than the designs, trademarks and GIs over last decade.Total number of patent grantsoverthe last 10 years was 69,745 out of which 21.71% were granted to Indians and 78.29% wereto foreign applicants. Maharashtra, Delhi and Southern states are leading in filing patents. Streams like chemical and mechanical engineering have produced highest number of patents whereas bio-technology and foods field were at the low preference.

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Copyrights. Copyrights are a form of intellectual property that grants the creator of an original work exclusive rights for distribution for a limited period of time. The first copyright act came to India in 1914, which was modeled on the British Act of 1911. After independence, India’s copyright regulations underwent thorough revisions, ultimately resulting in the Indian Copyright Act of 1957, which included (among other provisions) an extension of copyright protections to cover 50 years of protection. Since then, the act has been amended five times (most recently in 2012), with amendments covering further extensions of the copyright period, updates to reflect the digital environment, and coverage for other media forms, including radio diffusion, cinematographic film, and others.

Geographic indicators. A geographic indicator highlights a place of origin for a product and for the purpose of IP may be closely linked to the perceived value of the good. Examples of geographic indicators include Darjeeling tea, Banarasi Saree in India and Havana, and Champagne internationally. India’s Geographic Indications of Goods (Registration & Protection) Act is relatively new, as it first passed in 1999 and was made in fulfillment of obligations under GATT, to which India is a signatory. The purpose is to exclude unauthorized persons from misusing geographic indicators and protecting consumers against deception from passing off goods not related to any geographic area. The registration of such indicators is valid for a period of ten years and can be renewed for further periods of ten years successively.

Industrial Designs. Indian law also safeguards IP protections for industrial designs based on the unique look or feel of an invention, such as its pattern, shape, or texture. For the purpose of registration, design-related IP protections can be conferred on fourteen classes of goods. Once registered the period of design is fifteen years with renewals at every five-year period. After fifteen years the design becomes open and public property.

6Additionally, within the field of design the Semiconductor Integrated Circuits Layout Design Act and Rules of 2000 seeks specific protections for semiconductors. This act gives an owner an exclusive right

to create layout design for a period of ten years. The act enables the owner to commercially exploit their creation and, in the cases of infringement, seek relief under its provisions.

7Agriculture. Under Indian law, IPR related to innovation in crops and planting are covered by the Protection of Plant Varieties and Farmers’ Rights Act of 2001. This act seeks to provide for the “establishment of an effective system for protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.” The duration of protection of registered varieties is different for types of crops. For trees and vines, the protection is eighteen years, while for other crops it is fifteen years. Similarly, for extant varieties, protection is fifteen years from the date of notification.

Domestic Governance and Management of IPR

To execute and enforce the statutory guidelines above, India has a patchwork bureaucracy, which, as of this writing, is being updated under the guidance of a new national IP think tank. As such, the governance and management of IPR in India still currently falls under various offices that cut across different parts of the national government.

As can be seen in Figure 4 and Table 1, IP protection is the responsibility of a number of departments, including the Department of Education, the Department of Information Technology, the Department of Agriculture and Cooperation, and the Department of Industrial Policy and Promotion, among others. While several of these departments can be found within the Ministry of Commerce and Industry, other departments are housed in ministries from different parts of the national government.

A key figure in these structures is the Controller General of Patents Designs and Trademarks (CGPDTM), whose office falls under the Department of Industrial Policy and Promotion at the Ministry of Commerce and Industry. This office is a critical element of India’s IP structure, as it is responsible for managing the broadest spectrum of IP types. As highlighted in Figure 4, the CGPDTM has various

31

Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context

6 Ministry of Law, Justice and Company Affairs (India), The Semiconductor Integrated Circuits Layout-Design Act, 2000, Act ofParliament no. 37 of 2000, no. DL-33004/2000 (New Delhi, September 4, 2000), http://sicldr.gov.in/Resources/SICLDRA1.pdf.7 Ministry of Law, Justice and Company Affairs (India), The Protection of Plant Varieties and Farmers’ Rights Act, 2001, Act ofParliament no. 53 of 2001, no. DL-33004/2000 (New Delhi, October 30, 2001), http://agricoop.nic.in/PPV&FR%20Act,%202001.pdf.

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registries under it, namely trademark and geographic indicator registries. The trademark registry is located at five regional centers, and the geographic indicators registry is located at Chennai. Similarly the CGPDTM has four regional patent offices under it, located at the four metropolitan centers, namely Mumbai, Chennai, Delhi, and Kolkata. The patent information system at Nagpur also reports to the CGPDTM. In addition to the above registries and offices, there is also a national institute for IP management under the CGPDTM.

Legislation Department Agency/ Body

Patents Act, 1970 (amended in 1999, 2002 Department of Industrial Controller General of Patents,

and 2005)

Policy & Promotion

Designs and Trademarks (CGPDTM)

Designs Act, 2000

Department of Industrial

Controller General of Patents,

Policy & Promotion

Designs and Trademarks (CGPDTM)

Trade Marks Act, 1999 (amended in 2010)

Department of Industrial

Controller General of Patents,

Policy & Promotion

Designs and Trademarks (CGPDTM)

Geographical Indications of Goods

Department of Industrial

Controller General of Patents,

(Registration & Protection) Act, 1999

Policy & Promotion

Designs and Trademarks (CGPDTM)

Copyright is protected through Copyright Department of Higher

Copyright Office

Act, 1957, as amended in 2012

Education

Layout of transistors and other circuitry

elements is protected through The Semi-

Department of Information

Semiconductor Integrated Circuits

conductor Integrated Circuits Layout -

Technology

Layout Design Registry

Design Act, 2000

New varieties of plants are protected

Department of Agriculture

Plant Varieties and Farmers’ Rights

through the Protection of Plant Varieties and

and Cooperation. Authority

Farmers' Rights Act, 2001

32

Prastuti: Vol. 5, No. 1, July 2016

Figure 4 Office Structure of CGPDTM

Source: Controller General of Patents, Designs and Trademarks(India), Annual Report 2012–2013 (New Delhi,2013), http://ipindia.gov.in / cgpdtm / Annual Report _ English _ 2012 _ 2013 .pdf.

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International Protections for IPR: TRIPS

Finally, the third pillar of India’s IPR regime is defined as its obligations under international frameworks. On this front, perhaps the most pressing and important agreement for understanding India’s engagement in the international IPR system is its response to TRIPS. India’s position with respect to TRIPS began with being defensive about the country’s obligations and its IPR developments, slowly changed to moderation, and finally changed to being aggressive with respect to some specific dimensions.

8Initially, India held a more defensive view of the international IPR regime. In the 1970s, it passed through a phase of “know-why” oriented technological learning, when the country focused technological development on building up process capabilities through reverse engineering. This phase was possible because India’s 1970 Patent Act allowed for this view of “know-why” development coupled with emerging IPR culture, such as by allowing process.

9patents on chemical substances. Internationally, this put the country at odds with the suggested requirements of TRIPS after 1994 when the agreement came into force. Ultimately, India saw a proliferation of its “process” industry during the initial years from the 1970s onwards, while at the international level pharmaceutical companies already wanted a more stringent IPR regime. India’s pharmaceutical industry initially was strongly opposed to the idea of product patents and led the push for defense against TRIPS.

10During the 1990s, the pharmaceutical industry’s business interests in India became sharply divided, with some multinational corporations wanting to export to overseas markets, utilizing India’s largely cheap labor. These corporations came out strongly in support of the TRIPS Agreement. A large number still did not feel that they had adequately caught up with the rest of the pack and wanted the process patent regime to be extended.

India accordingly signed the TRIPS Agreement in 1994. Mentioned in the GATT treaty was also that member countries conform to their national legislations on IPR and to the conventions and suggestions contained in the treaty. The declaration recognizes members’ “right to grant compulsory licenses and the freedom to determine the grounds upon which such licenses are granted.” It also grants each member the “right to determine what constitutes a national emergency or other circumstances of extreme urgency” in implementing TRIPS.

Analysis

The acts and legislations of India at present are increasingly coming in contact with international conventions, and in the years ahead further harmonization with the international system is expected. The IP system is in a state of transition, and a look at its facts and figures offers insights into the functioning of the system under the boundaries of these key legislations and treaties.

11Trends in IP Activity

The functioning of the IP ecosystem in India can be gauged effectively from the trends in IP activity. The section looks at four kinds of IP that fall under the CGPDTM. These statistics reflect trends pertaining to various IP activities as reported by different offices/registries. What follows are some of the trends that have been observed in the IP filings and grants of the CGPDTM over the past few years.

Patents

The total number of patent applications filed rose from 2,613 in 2003–4 to 43,674 in 2012– 13. Though these figures are far smaller than commensurate figures for China and the United States (whose total patent applications were 825,136 and 571,612, respectively, in 2013). India’s patent office is eighth overall in patent filings in 2013 according to the WIPO, ahead of patent filings in offices of Canada and Brazil with filings of 34,741

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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context

8 A “know why” capability is in contrast with a “know how” capability. A know-why capability is based on understanding the processand reverse engineering, while a “know-how capability is based on increasing the production efficiency. 9 A process patent is in contrast with a product patent. A process patent is granted for a manufacturing process that is different fromthe original process, while a product patent is granted for only a product that is different from the original product.10 “Declaration on TRIPs Agreement and Public Health,” World Trade Organization, November 20, 2001, http://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_trips_e.htm.11This section draws heavily from various rounds of annual reports from the Indian Controller General of Patents, Design andTrademarks, Department of Industrial Policy and Promotion, Ministry of Industry and Commerce, all of which are accessible athttp://ipindia.gov.in/main_text1.htm.

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and 30,884 applications, respectively. The WIPO data included applications by foreign companies through the Patent Cooperation Treaty route as well as by Indian institutions, individuals, and companies. The patent grants have likewise increased from 2,469 to 4,126 during the commensurate period. These grants are also miniscule when compared with international patent offices.

12At a subnational level, Maharashtra reported the maximum number of filings, which has remained unchanged in the years 2007–8 and 2012–13. Delhi and Karnataka are other subnational regions doing well on patent filings. Also, it is worth noting that the states that have a higher GDP tend to have higher patent filings. This

2trend is indicated by an R value of 0.76. One needs to look at the patent innovation in India according to the state categorizations, as this helps one understand the dynamics of innovation in a much better manner.

13While looking at the international filings, it is interesting to note that the maximum filings occur through the Patent Cooperation Treaty (PCT) route that is roughly 85% of all the applications made by nonresidents in 2012–13. The United States reported the maximum number of PCT filings in India, and the top three countries for both

2007–8 and 2012–13 were the same, with the United States, Germany, and Japan accounting for more than 50% of patent filings in India.

Trademarks

The various registries of trademarks have reported an increase in the number of trademarks filed from 92,251 to more than double at 194,216. The registered section however shows a haphazard pattern with registrations moving up and down in a random manner, suggesting limited insights from an analysis of this raw data.Design

Designs have also seen an increasing trend from 2003–4 to 2012–13. The number of designs filed has increased from 3,357 to more than twice that number at 8,337. The designs granted have also increased significantly from 2,547 in 2003–4 to 7,252 in 2012–13.

Geographical Indicators

Geographical Indicators have registered an incoherent pattern over the past few years since the act came into being in 1999 and the GI registry was established. Over the past five years, 132 indicators have been registered.

Comparison of the revenue generated for the last 10 years

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12An R2 value is a measure of goodness of fit of a linear regression. The value R2 is a fraction between 0.0 and 1.0 and has no units.An R2 value of 0.0 means that knowing X does not help one predict Y. There is no linear relationship between X and Y, and the best-fitline is a horizontal line going through the mean of all Y values. When R2 equals 1.0, all points lie exactly on a straight line with noscatter. An R2 value of 0.73 is strong enough to predict a correlation between X and Y.13 To know more about the PCT route, see “The PCT Applicant’s Guide,”WIPO,http://www.wipo.int/pct/guide/en/gdvol2/pdf/gdvol2.pdf.

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Analysis

All these trends demonstrate that the present IPR regime, especially after India became a signatory to TRIPS, has strengthened compared with the past and is bound to strengthen moving ahead in light of greater harmonization between IPR regimes across the world. IPR in years to come might see an increasing national

participation that will auger well for the IPR ecosystem to develop to its full potential in India. This trend will also be important from a future competitiveness point of view. Countries that have had stronger IPR regimes have tended to develop more than countries with an absence of robust IPR protections.

Case Study: Fostering Innovation in India’s 14Pharmaceutical Sector

While the preceding sections looked at India’s IP protections from the vantage point of individual types of

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IP, it is helpful to view India’s IPR regime in the context of a particular industry, to see how a stronger regime might have larger impacts on India’s macro economy. With this in mind, the sector that could witness a lot of changes with the emergence of an IPR regime in India is the pharmaceutical sector. In this sector, patents are crucial for gaining competitive advantage, and India’s promotion of IP protections is of critical importance to this sector’s health and continued development.

The pharmaceutical industry in India at present is highly fragmented and clustered and faces stiff competition. The industry is clustered in the western states of Gujarat and Maharashtra and also in the southern belt of Andhra Pradesh and Tamil Nadu. It is highly fragmented and had over 10,000 pharmaceutical manufacturing units in 2007.At a high level, a typical global pharmaceutical company has a value chain that consists of three core steps where value is added to a product: (1) drug discovery and development, (2) clinical trials, and (3) manufacturing. Most Indian companies are not really entering the market

for drug discovery and development at this point and prefer to copy from existing drug concepts. They go in after this for equivalence testing at the clinical trial stage and f ina l ly go in for manufactur ing act ive pharmaceuticals, which are then added to formulations to yield final pharmaceutical drugs.

Additionally, the overall focus of Indian companies is still on operations and marketing without looking at the technology development that is a strategic imperative for most multinationals. This focus arose from the 1970’s process patent regime. Over time it also led to a mindset

15termed “jugaad innovation.” Jugaad is a Hindi word that literally means “makeshift” and roughly translates as “overcoming harsh constraints by improvising an effective solution

Geographical Indicators

Geographical Indicators have registered an incoherent pattern over the past few years since the act came into being in 1999 and the GI registry was established. Over the past five years, 132 indicators have been registered.

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14 This section draws heavily from the pioneering work of Professor Michael E. Porter of Harvard Business School. http://kkozak.wz.cz/Porter.pdf; and Vivek Wadhwaand et al., “The Globalization of Innovation: Pharmaceuticals: Can India and China Cure the GlobalPharmaceutical Market,” Kauffman, June 2008; For a detailed analysis, see appendix 1 and 2 for recent developments and conceptualframeworks as applied to the pharmaceutical industry in India.15For more on Jugaad Innovation, see http://jugaadinnovation.com.

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Analysis

All these trends demonstrate that the present IPR regime, especially after India became a signatory to TRIPS, has strengthened compared with the past and is bound to strengthen moving ahead in light of greater harmonization between IPR regimes across the world. IPR in years to come might see an increasing national participation that will auger well for the IPR ecosystem to develop to its full potential in India. This trend will also be important from a future competitiveness point of view. Countries that have had stronger IPR regimes have tended to develop more than countries with an absence of robust IPR protections.

Case Study: Fostering Innovation in India’s 14Pharmaceutical Sector

While the preceding sections looked at India’s IP protections from the vantage point of individual types of IP, it is helpful to view India’s IPR regime in the context of a particular industry, to see how a stronger regime might have larger impacts on India’s macro economy. With this in mind, the sector that could witness a lot of changes with the emergence of an IPR regime in India is the pharmaceutical sector. In this sector, patents are crucial for gaining competitive advantage, and India’s promotion of IP protections is of critical importance to this sector’s health and continued development.

The pharmaceutical industry in India at present is highly fragmented and clustered and faces stiff competition. The industry is clustered in the western states of Gujarat and Maharashtra and also in the southern belt of Andhra Pradesh and Tamil Nadu. It is highly fragmented and had over 10,000 pharmaceutical manufacturing units in 2007.

At a high level, a typical global pharmaceutical company has a value chain that consists of three core steps where value is added to a product: (1) drug discovery and development, (2) clinical trials, and (3) manufacturing.

Most Indian companies are not really entering the market for drug discovery and development at this point and prefer to copy from existing drug concepts. They go in after this for equivalence testing at the clinical trial stage and f ina l ly go in for manufactur ing act ive pharmaceuticals, which are then added to formulations to yield final pharmaceutical drugs.

15Additionally, the overall focus of Indian companies is still on operations and marketing without looking at the technology development that is a strategic imperative for most multinationals. This focus arose from the 1970’s process patent regime. Over time it also led to a mindset termed “jugaad innovation.” Jugaad is a Hindi word that literally means “makeshift” and roughly translates as “overcoming harsh constraints by improvising an effective solutionusing limited resources.”

16 It is a temporary substitute and not formally an actual innovation that is generally looked upon as a systematic and process-driven activity. Jugaad as a mindset has caused shortcuts to emerge, which have resulted in poor patenting rates in India. This mindset is in contrast to the general value chain for most global pharmaceutical companies.

However, a number of Indian companies also increasingly see the value of this drug discovery route in trying to move up the value chain. In addition, a lot of strategic alliances have emerged between Indian companies and their global counterparts. Indian drugs are also under a price control regime and face regulatory issues, with the recent acquisition of Ranbaxy by Sun Pharma coming under investigation by the Competition Commission of

17India. The acquisition is now complete.

18This is a step in the right direction that was taken to promote competition and not let the consumer suffer due to acquisition. However, the Indian pharmaceutical industry still is mostly operative at the low end of the value chain, with generic drugs accounting for a

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16Navi Radjou, Jaideep Prabhu, and Simone Ahuja, “A Q&A with Navi Radjou, Jaideep Prabhu and Simone Ahuja, Authors of JugaadInnovation,” Jugaad Innovation, http://jugaadinnovation.com/about-the-authors/qa-with-authors/.17The National Pharmaceutical Pricing Authority is the nodal agency for controlling prices of certain essential drugs; the Ranbaxy sitenow redirects to Sun Pharma. For more on this, see http://www.ranbaxy.com/sun-pharma-to-acquire-ranbaxy-in-a-us4-billion-landmark-transaction/.18The main problem in the acquisition was that the merger was causing monopolization in certain product molecule markets.The Competition Commission of India (CCI) intervened, and where the market share was very high following the merger, the CCIinsisted on divesting that product from the entity.

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considerable portion of the revenues for players in the Indian market.

Ultimately, the industry structure will be altered significantly with a stringent IPR regime. There will be an incentive to invest in R&D. The scale of operations may also increase with better prospects for exports from larger companies. This will also enable Indian companies in the pharmaceutical domain to move up in the value chain and have better realizations and greater investment in R&D. The companies could move toward a differentiated pricing regime with different prices as per the paying ability of consumers in Indian and foreign markets.

Impediments to Future Growth of the IPR Regime and Future Steps

Ultimately, in both pharmaceuticals and its wider industries, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. Yet there are critical impediments that have hampered prospects for broader acceptance of IPR norms and that if addressed may enable greater economic cooperation between countries. Some of these impediments are tangible while others appear to be intangible.

The tangible factors are as follows:

General environment of protection and enforcement with respect to IPR

Concerns raised in the U.S. Trade Representative’s Special 301 Report during its various rounds since 1989, due to which India is on a priority watch list since 1994

The U.S. Chamber of Commerce’s GIPC’s Index, which ranked India last among the 25 counties considered for the index in 2014 and second-worst after Thailand in 2015

Growing piracy, particularly over the Internet with respect to various IP rights and copyright law

19The cost of registration of IP, which at times are quite high, leading a number of IPR regimes to go for a utility model

Low digitization of patent records and lack of human resources in IP officesA large backlog of cases pertaining to IPR that has resulted in a delayed process of redressing grievances

20No special court for IPR

21Lack of protection for trade secrets

The intangible aspects of IPR that are impediments to a full-scale adoption of the current IPR regime are as follows: Sociocultural and other historical factors Access to medicines for poor people

Regarding these two intangible factors, although India’s association with the patent regime has been long-standing, neither corporations nor the common people have really latched on to the idea. Since most people in a country like India are poor, access to medicines will become increasingly difficult if the IPR regime is established as it is in United States. The industry is also largely informal, fragmented, and at the bottom end of the value chain, where imitation is rampant. Expecting the industry to change overnight is not pragmatic. The fact that most medicines are generics in India does not mean that India does not upgrade the IP system to foster innovation, at least for the top 35 players in the pharmaceutical sector. At the present stage of development of the industry and economy, India should aim for strengthening IP protection while at the same time granting greater autonomy to the National Pharmaceutical Pricing Authority and other regulators for a more innovative, yet at the same time a highly regulated, industry.

Addressing these issues will require a policy direction that will enable India’s IPR regime to follow global standards while at the same time realizing the innovation potential

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19“Protecting Innovation by Utility Models,” WIPO, http://www.wipo.int/sme/en/ip_business/utility_models/utility_models.htm.20Unlike some other Asian countries (most notably Malaysia and Taiwan), India does not have a special court for settlement ofIPR-related disputes. There is in existence the Intellectual Property Appellate Board, but this board has its own set of issues withrespect to functioning and understaffing.21The current law does not adequately protect trade secrets in India. There is a concern with respect to matters not falling under thecontract law, as in the case of protection of trade secrets.

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of various Indian states. The first public draft of the national IP policy seeks to clear the air on a lot of issues pertaining to the Indian IPR regime and is a step in the right direction. Future steps could help improve the acceptability of a more robust IPR regime and include the following policies.

22Improvement in present IPR regime. This may take place with removal of prejudices and focus on scientific temper in people and providing an ease of filing patents. The draft IP policy is a step in the right direction that seeks to establish a “dynamic, vibrant and balanced intellectual property system in India.” It will also involve having more Indians file different forms of IP like patents, etc. The utility model that is envisaged will also greatly benefit micro, small, and medium sector enterprises.

Establishment of special IP courts with trained human resources. Although an Intellectual Property Appellate Board (IPAB) is present in India, its functioning should be improved. The draft policy talks about increasing the powers of the IPAB and opening regional branches. It is imperative to have professional IP courts with trained lawyers and judges for effective understanding and enforcement of IP laws. This may be based on the model of other Asian countries like Malaysia and Taiwan, which could help improve the functioning of courts on IPR.

23More research on linkages between a better IPR regime and greater innovation. This may be undertaken as research that calls for IPR regimes and their impact. Figure 1 in this report tries to do just that. This point requires a greater research focus on finding linkages between greater IP protection and greater innovation.24Protection of trade secrets. Currently there is no separate legislation that regulates the protection of trade

secrets in India, though there is the draft Innovation Act of 2008 that seeks to protect the same. According to the WIPO, trade-secret protection is particularly important for small and medium-sized enterprises, as protection is indefinite. This legislation for protection of secrets would broaden the scope of the current IPR regime.

State level policy for improving innovation. At present there are very few present policies aimed at bettering IP and innovation potential in states. Such regimes could augur well for an improvement in investments under these regimes.

25Dispute resolution through bilateral talks and international treaties. Governments of several countries working together have a prominent role to play in resolving disputes. Recently, India and the United States have led the way in this regard by establishing “an annual high-level Intellectual Property (IP) Working Group with appropriate decision making and technical level meetings as a part of the trade policy forum.” Similarly, India could look at treaties like the Hague Treaty on Industrial Designs to strengthen its IPR regime.

All these steps could help India not only attain competitiveness from the current viewpoint but also maintain sustainable competitive advantage over a longer t ime f rame and enhance i ts future competitiveness.

Conclusions

The broad level contours of IP policy are now visible in the

form of the national IP policy. India now needs to improve

the IPR regime both from the side of the legislation and

also from the side of enforcement of laws. This

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22IPR Think Tank (India), “National IPR Policy,” December 19, 2014, http://dipp.nic.in/English/Schemes/Intellectual_Property_Rights/IPR_Policy_24December2014.pdf.23 According to Stiglitz et al., there is no clear link between a stronger IPR regime and great innovation. This is also a concern that theAmerican IPR regime—the positive example of IPR protection that served as the basis for encouraging other countries to sign theTRIPS agreement—seems to be too focused on rent seeking ,which may not be appropriate for developing countries. While it may betrue that IPR regimes and innovations may not be connected empirically, what must be also observed is the incentive structure andhow it gets distorted in the absence of adequate protection. Also, if IPR regimes are existent not only due to links with innovation butalso a means of ensuring future R&D and inventions that act as the basis for innovations. Also, regimes elsewhere are bettering—acase in point is China a country with world’s largest population and a per capita GDP roughly thrice of India, strengthening its IPRregime substantially. For more on this, see Giovanni Dosia and Joseph Stiglitz, “The Role of Intellectual Property Rights in theDevelopment Process, with Some Lessons from Developed Countries: An Introduction,” Laboratory of Economics and ManagementWorking Paper Series, no. 2013/23, 2013.24 Tariq Ahmad, “Protection of Trade Secrets: India,” Library of Congress, August 2013, http://www.loc.gov/law/help/tradesecrets/india.php.25 “DIPP Statement on Bilateral Mechanism for Discussing IPR Issues,” Press Information Bureau, Government of India, October 3, 2014,http://dipp.nic.in/English/News/India_US_IPR_04October2014.pdf.

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improvement will help in the creation of a better

environment for improving the overall innovation in the

country. The need also exists to start looking at and

understanding the IPR regimes abroad and, more

importantly, bringing in the requisite changes, such as

better digitization, in the present regime. For this, Indian

states as well as industry will have to play a proactive role

in asking the central government for a better IP protection

regime so that there is greater innovation at the state

level , which contr ibutes toward the future

competitiveness of India. Particular industries’

performance, namely the pharmaceutical industry, will

depend on the kind of IPR regime prevalent in India. It is

important, however, that the likely impacts of introducing

various measures are taken into account before framing

and implementing IP policy.

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Appendix 1: Additional Recent Developments in IP Issues in India

Several changes have been seen in India’s IPR regime since the formation of the new national government in May 2014. The first of these was Prime Minister Modi’s five-day visit to the United States that started on September 27, 2014, after which the Prime Minister’s Office of India and the White House on September 30 issued a joint statement. The statement mentioned the need to “establish an annual high-level Intellectual Property (IP) Working Group with appropriate decision-

chnmaking and te ical-level meetings as part of the Trade 26Policy Forum.”

Next, the United States conducted an out-of-cycle review of India’s IPR regime. The review had proposed a deadline for submission of written comments by the public by October 30, 2014, and had set a deadline for submission of written comments by foreign governments by November 7, 2014. Meanwhile, in another significant step the Department of Industrial Policy and Promotion (DIPP) on October 22 constituted an IPR think tank (comprising one chairperson and five other members) to draft the National Intellectual Property Rights Policy and to advice DIPP on IPR issues. The think tank submitted the draft legislation to DIPP and put this up on its website on December 19, 2014.

Also, the U.S. Chamber of Commerce’s Global Intellectual Property Center in February 2015 released its annual report on IP, which placed India as a country having the second-weakest IP environment out of the 30 countries considered for making the international index. The index ranked countries on 30 parameters, with countries assigned one point for each parameter. India scored a dismal 7.23, just ahead of Thailand (7.10).

This Index was followed by the USTR’s Special 301 Report, which came out in April 2015. The report placed India again on the Priority Watch List in 2015 and further encouraged progress on IPR issues. The report was also positive about the draft IP policy and the progress made so far. Considering the changes that are underway, India is indeed on the cusp of a major IP revolution of sorts that may change the dynamics of IP protection and enforcement, thus leading to greater innovation.

National Intellectual Property Rights Policy - 2016

On 12 May 2016, the Indian government approved its first ever National Intellectual Property Rights (IPR) Policy. This National Policy was drafted by an independent IPR Think Tank that consisted of six members, chaired by Justice (retired) Prabha Sridevan.

The main focus of this policy is related to the slogan ‘Creative India, Innovative India’, which subsequently is aligned to different government initiatives and missions in recent times that include ‘Make in India’, ‘Atal Innovation Mission’, ‘Start-Up India’, and ‘Stand-Up India ’ promoting creat iv i ty, innovat ion and entrepreneurship in the country.

The guiding principles of the policy are explicitly elaborated in its Vision and Mission statements. The stated vision of this policy is: ‘An India where creativity and innovation are stimulated by Intellectual Property for the benefit of all; an India where intellectual property promotes advancement in science and technology,arts and culture, traditional knowledge and biodiversity resources; an India where knowledge is the main driver of development, and knowledge owned is transformed into knowledge shared’.

While, the stated mission of the policy is: ‘Stimulate a dynamic, vibrant and balanced intellectual property rights system in India to: (a) foster creativity and innovation and thereby, promote entrepreneurship and enhance socio-economic and cultural development, and (b) focus on enhancing access to healthcare, food security and environmental protection, among other sectors of vital social, economic and technological importance.

The scope of the policy encompasses all legislations related to intellectual property protection for the inventors, creators, designers and entrepreneurs in the country, namely, the

v Patents Act, 1970; v Trade Marks Act, 1999; v Designs Act, 2000; v G e o g ra p h i c a l I n d i c a t i o n s o f G o o d s

(Registration and Protection) Act, 1999;

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v Copyright Act, 1957; v Semiconductor Integrated Circuits Layout-

Design (SICLD) Act, 2000; v Protection of Plant Varieties and Farmers’

Rights Act, 2001; and v Biological Diversity Act, 2002.

The policy provides the guided principles of administration of eight aforesaid National Acts. The policy also proposes administration of related IPR Acts from a single line ministry, i.e. Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry. Thus, IP resources under the Copyright Act and the SICLD Act are brought to DIPP respectively from the Ministry of Human Resource Development (MHRD) and the Department of Electronics and Information Technology (DeitY). Henceforth, DIPP will administer, admit applications, and maintain the respective registry for patents, trademarks, industrial designs, copyrights, SICLD, and geographical indications of goods.

The ministries, namely, the Ministry of Agriculture and Farmers Welfare, and the Ministry of Environment, Forest and Climate Change continue to administer the IP resources under the Biological Diversity Act and Protection of Plant Varieties and Farmers’ Rights Act. The policy then emphasizes on safeguarding traditional knowledge (TK), genetic resources (GR), traditional cultural expressions (TCE) and folklores, which are essential for maintaining cultural diversity and unique identity of the country and the regions. Here, the policy suggests widening the scope of the existing Traditional Knowledge Digital Library (TKDL) by including different IP resources beyond the Indian systems of medicine.

The IPR policy also recognizes the interests of poor patients in developing countries as identified from its text: ‘the contribution of the Indian pharmaceutical sector in enabling access to affordable medicines globally and its transformation to being the pharmacy of the world’. India is also a signatory to the recently adopted United Nations’ Sustainable Development Goals (SDGs). One of the targets of SDG 3 (Good Health and Well-Being) emphasizes on easy and equitable access to medicines and vaccines. TheTarget states, ‘3.B Support the research and development of vaccines and medicines for the

communicable and non communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health, which affirms the right of developing countries to use fully the provisions in the Agreement on Trade-Related Aspects of Intellectual Property Rights regarding flexibilities to protect public health, and, in particular, provide access to medicines for all’.

The majority of critics of this IPR Policy are apprehensive on weak provisions of affordable medicines and seeds in the IPR policy document3. Thus, the IP administrators in the country should recognize this provision in SDGs and India’s commitments. DIPP should broaden its resources for safeguarding the interests of the poor patients.

The policy also emphasizes on operational strategies in strengthening IP incubation and facilitation centres in different creative and innovative organizations for improving their institutional IP portfolios at par with the global standards. The Atal Innovation Mission also has similar operational objectives. Thus, the IP awareness and capacity development in the industries, MSMEs (micro, small and medium enterprises), startups, R&D institutions, science and technology institutions, universities and colleges are given priority for the early foundation of a holistic and conducive innovation ecosystem in the country. While building strong IP-led cultures in the country, India’s economic growth and technological progress would make a significant impact in other areas of human development, such as poverty alleviation and zero hunger.

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Organizational challenges are always not measured by their wealth but their employees who face challenges in the form of changing composition not only by work pressure but also by peer pressure and attitude of the work force where prolonged mistreatment at the work place would have significant impact on the employee’s productivity. This research paper aims to review the studies and examine the effectiveness of Workplace Bullying on Employees’ Productivity in private organizations. This research paper is Descriptive in nature and makes use of primary data as well as secondary data and explored that being a victim of bullying can lead to adverse effects which cause psychological and physical health problems.

Keywords: Work place Bullying, Productivity, Organization Effectiveness, Effects.

Effect of Workplace Bullying onEmployees Productivity in thePrivate Organizations withspecial Reference to Delhi & NCR

Abstract

Introduction

Workplace bullying is a common practices across the

organizations but its depends organizations to

organizations, depending primarily on the size of the

organization. We normally private organization has a

huge target to achieve mainly to survive in this

competitive world where sustainability is always at the

edge However, private Organizations, where line

managers assume major role in effective human

Resource management Practices. Where all official

authorities typically assume the following four areas of

responsibility: Establishing deadlines to achieve the

target through proper procedures, developing methods,

monitoring and evaluating these practices, and guiding

managers or staff on concerned matters. While as excess

of everything is bad similarly, the term workplace

bullying is too complex to have universal definition but

yes it does not mean a strict supervisor, warrant for

demotion, discipline counseling or fear of termination.

Work place bullying happens when there is a ignorance

of the issue, Bully supported through actions or

inactions of management, Stressed employees taking

frustration out on others, no system of reporting or

protection for victims , lack of recognition and anti

–bullying laws .

The success of an employee’s productivity matters on

the capabilities of both parties to do complete work

correctly. Professionals create and develop the system,

while managers provide the actual productivity (related

to upper-management approval), what procedures to

follow when implementing practice. For instance, in

selection the HR professional may construct the

application blank, develop a structured interview guide,

or choose an employment test. HR professionals also

Shaifali Garg* Dr.A.K.srivastav**

*Assistant professor, GLA University, Mathura. Email id: [email protected] **Director, Institute of Productivity Management, Ghaziabad,[email protected]

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must ensure that the firm's HRM practices are properly

implemented. This responsibility contains both

evaluating and monitoring which can only be achieve by

making conducive environment where people believe

that only way to handle bullying target is to accepts the

bullying as part of employment ,victims fear retribution or

losing position for making waves ,and majority people

think bullying behavior end only by leaving the company

entirely.

Literature Review

The researchers have used various definitions to explain

the concept of workplace bullying based on their research

perspectives. Still, the researchers are trying to develop a

globally accepted definition of workplace bullying

(Saunders, Huynh & Goodman-Delahunty, 2007). Most of

the researchers have adopted the following definition of

workplace bullying:

Bullying at work means harassing, offending, socially

excluding someone or negatively affecting someone’s

work tasks. In order for the label bullying to be applied to a

particular activity, interaction or process has to occur

repeatedly and regularly (e.g., weekly) and over a period

(e.g., six months). Bullying is an escalated process in the

course of which the person confronted ends up in an

inferior position and becomes the target of a systematic

negative social act (Einarsen et al., 2003, p. 15).

Quine (2001) rightly observed that workplace bullying has

three common themes, namely, impact on the recipient;

negative effects on the victim; and the persistent nature

of bullying behavior. The impact of workplace bullying on

an employee arise from its perception in a negative light

which translate into making the victim to feel upset,

threatened, humiliated or vulnerable with a high level of

anxiety, depression, helplessness, burnout and

frustration (Keashly & Neuman, 2004).

From the definition, it is understood that exposure to

negative social behaviors, frequency and duration of

exposure and the perceived power disparity are the key

features of workplace bullying. The exposure to negative

social behaviors is the prime feature of workplace

bullying. There is no definite list of bullying behaviors—it

might be common in daily life, but occurrence on a regular

basis may cause harm and humiliation to the victims

(Leymann, 1990). The researchers broadly categorized

negative bullying behaviors into (1) work-related

behaviors (e.g., excessive monitoring of work,

unmanageable workload and judging work wrongly) and

(2) person related behaviors (e.g., rumours, undermining,

verbal abuse, persistent criticism, false accusations and

social isolation) (Bartlett & Bartlett, 2011; Einarsen et al.,

2003). The second defining feature of bullying is the

frequency and duration of exposure to negative social

behaviors in the workplace. The frequency is the number

of times of exposure to negative acts and duration is the

length of such recurring acts (Rayner, Hoel & Cooper,

2002). The manifestation of work related bullying

includes giving unachievable task, impossible deadlines,

unmanageable workloads, meaningless tasks,

withholding information deliberately or supplying

unclear information, threats about job security, and

scapegoating (Tumbur &Vardi, 2009 .The researchers

have set the varying frequency and duration to determine

the victims of workplace bullying.

Leymann (1996) proposes that the employees who are

exposed to at least one negative behaviour weekly over a

period of six months can be considered as victims of

bullying at work. Mikkelsen and Einarsen (2001) claim

that exposure to at least two negative acts weekly over

duration of six months is required to classify the

experience as bullying. Most of the researchers endorse a

minimum period of exposure of either six months

(Leymann, 1996; Lutgen-Sandvik, Tracy & Alberts, 2007;

Mikkelsen & Einarsen, 2001) or 12 months (Rutherford &

Rissel, 2004; Salin, 2001; Yildrim, 2009).

The previous research highlights that the employees felt

being victimized even with a lesser duration of six months

(Vartia, 2001). The third feature is the power disparity

experienced between the perpetrator and the target

(Einarsen et al., 2003; Salin, 2003). Power difference may

be present at the onset of the bullying behaviours or it

might evolve over a period. The power difference could

be real or perceived, but the victims might find it difficult

to defend and stop the situations of bullying (Einarsen,

1999). The power disparity could be either due to the

formal power of organizational position or due to the

informal power, such as, social support, knowledge and

experience (Einarsen, 2000; Einarsen et al., 2003).

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Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR

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Objectives of study

The primary objective of the study is to have an in depth

understanding of the effect of workplace bullying on

various human resource aspects such as employee

productivity,

• To study the significant relationship between work

Place bullying on the work performance (Employees

‘productivity).

Hypothesis:

Ho 1 There is no significance impact of employees bullying

on Employees productivity.

Ho 2 The mean value is not significant with test value 3 for

Employee Productivity

Theoretical framework and Research Methodology

The study attempts to analyze the various aspects, where

Questionnaire, Validity, Reliability – Cronbach Alpha, was

calculated with the Statistical Tools (t -test) .A primary

survey was conducted to find out in depth insights of the

study. Survey was conducted in the Delhi and National

Capital Region area. Primary data of 210 Employee from

private companies was collected.

Research Design

The present research is descriptive in nature. It contains

descriptions of phenomena or characteristics associated

with the current subject population and basically answer

the questions who, what when where and how of the

topic. The study attempts to discover Employees’

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Prastuti: Vol. 5, No. 1, July 2016

S. No.

Name of the Company

Industry

1 HDFC Bank Banking

2 ICICI Bank Banking

3 ICICI Pru life Insurance

4 Max Life Insurance Insurance

Table 1.1 Companies chosen in the Study

responses for all the companies with respect to the

various aspects of Effect of Productivity. A snapshot of the

research design of the study is as follows:

1. Universe of the study: The study was

conducted among Employee of select

companies operating in Delhi NCR (National

Capital Region).

2. Sampling design: Judgmental Sampling design

where the judgment criteria were that the

respondent working in select companies only.

3. Sample Size: 210 respondents from banks and

insurance of Delhi-NCR

Frequency Percent Valid Percent

Delhi 45

21.4

21.4

Ghaziabad

35

16.7

16.7

Noida 30 14.3 14.3 Faridabad

45

21.4

21.4

Gurgaon

55

26.2

26.2

Total 210 100.0 100.0

Table 1.2: Sample Size and Distribution

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Table1.2 presents the location of the respondents. The

location is divided into 5 different areas. All these areas

belong to the National Capital Region including the

national capital Delhi itself. The other areas of National

capital region are Ghaziabad, Noida, Faridabad and

Gurgaon.

It is observed from the above mentioned table that the

respondents are nicely distributed all around all the

locations and truly represents the national capital region.

There are 21.4% respondents from Delhi. Ghaziabad

being the second biggest district then the other parts of

NCR has the16.7 %of the total respondents, Noida 14.3 %

of the total respondents, Faridabad 21.4% and Gurgaon

26.2.

• Data Collection Tool: Structured Questionnaire

• Sources of Primary Data: Survey of Employees in

Delhi and NCR

• Sources of Secondary Data:

a. Journals and Articles.

b. PhD thesis.

c. Books, magazines, newspapers and periodicals.

d. Published interactions with Employee

e. Other relevant websites

Data analysis tools: Mean, Standard Deviation, T- Test

and Anova

Scaling and Questions type in Questionnaire Design:

• Interval Scale: Interval scale incorporates the

concept of equality of intervals. The same has

been used in many questions to provide a

strong scaling to the questionnaire.

Test of Reliability

Reliability assesses the similarity of results provided by

compare the measures of the same objects or construct.

The similarities of results are provided by independent

but comparable are measures of the same object or

construct is called reliability. As we know Reliability is an

index of consistency. The test of reliability has been done

for all the questions (wherever applicable). For applying

the test of reliability the value of Cronbach’s Alpha has

been calculated. A value more than 0.5 of Cronbach's

Alpha is considered as good for reliability. In the present

study, the values of Cronbach’s Alpha have been

calculated in the given table given ahead for all the

statements.

49

Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR

Cronbach's Alpha Number of Items

.695 14

Table 1.3. Reliability Statistics

It may be observed from table from the above table that

the data scale was reliable as the value of Cronbach’s

Alpha is more than .5.

D e m o g r a p h i c P r o f i l e o f t h e Respondents: The respondents have a mixed profile in the present study

and they are the true representatives as well.

Statistical Techniques for Data Analysis

For the purpose of analysis the following statistical tools

have been used:

Mean

Weighted mean has been used to analyse the questions of

likert scale where the number of responses are multiplied

by the respective weight. Mean has been applied to find

out the mean score and to find out the priorities of

variables. A weighted means has been used to analyze the

responses in Interval Scale Likert scale.

Standard Deviation

The standard deviation measures the absolute dispersion

for variability of distribution, the greater the amount of

dispersion or variability, the greater the standard

deviation, for greater will be the magnitude of the

deviations of the values from their mean. A small or less

value standard deviation means a high degree of

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uniformity of observations as well as homogeneity of a

series; a large or more standard deviation means just the

opposite. In the present study standard deviation has

been used almost at all the places where Mean and t-test

has been used to know the variability of the responses

(ibid).

One Sample t-test

The one sample t-test is used when we have data from a

single sample of participants and we wish to know

whether the mean of the population from which the

sample is drawn is the same as the hypothesized mean

(Coakes et. al. 2006). One sample t test is used to analyze

whether a single sample of scores is likely to have been

drawn from a hypothesized population. An independent

group t-test appropriate when different respondents

have performed in each of the different conditions, in

other words when the respondents in one condition are

different from the participants in the other condition. This

is commonly referred to as a between subjects design and

when the researcher determines whether the difference

between means for the two sets of scores is significant

and analysis will based on weighted mean.

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Prastuti: Vol. 5, No. 1, July 2016

Weight Scale Verbal Interpretation

4.50 above 5 Strongly Agree

3.50-4.49 4 Agree 2.50-3.49 3 Neutral 1.50-2.49 2 Disagree below 1.50 1 Strongly Disagree

Analysis of Employee Productivity

Descriptive statistics

Mean value of the below is 2.23 out of 5. It is presented in

the Third and fourth column where 1 is for strongly

disagree and 5 is for strongly agree. It means that lower

the agreement higher the value of scale anchor and vice

versa. Same will apply on the mean value also. A lower

mean value will represent a higher agreement and a

higher mean value will represent a lower agreement. For

the present statement the mean value is 2.23 which is less

than the neutral value of scale viz. 3. Hence it may be

concluded that the respondents are moving towards

disagreement side of the scale for the given statements.

Consolidate Mean of Employee Productivity:

It is observed from above table that respondents have

very high agreement with the ninth statement. Hence it

may be concluded that the respondents find perform

better even when they not bothered if they are being

ignored. (Mean value 3.30).

Testing of Hypothesis:

The statements given in the questionnaire were

converted as the null hypothesis. Null Hypothesis is an

assumption or a statement where no relationship/

association / Effect etc. is assumed between the variables.

The statements related to Productivity are converted as

null hypothesis

To test the significance of the responses with respect

to the statement student’s t-test has been applied. Table

presents the results of one sample t-test. It is observed

from the column Significance (2 tailed) that the value is

.000 for majority statements. These values of Sig. (2

tailed) in all the columns are below .05, the critical value

of ‘p’, hence all of the null hypotheses have been rejected.

To conclude the results of the table 1.6, it can be said that

all hypothesis get rejected as the value in Sig. (2 tailed is

below .05), it means there is significance difference of

workplace bullying on employees productivity.

As The present study is analytical in nature so for testing

the hypothesis with respect to Gender and Various Age

groups ANOVA have been applied.

Table 1.7 shows that highest 58 respondents i.e 27.6

percent are belong to the age group of 30-40 years, 45

respondents i.e. 21.4 percent from the age group of 20-30

years, 14.8percent i.e. 31 respondents from the age group

of 40-50 , 34 respondents i.e 16.2 percent from the age

group above 60 where as 16.2 percent i.e. 34

respondents from the age group above 60 and very few

respondents 8.6 percent i.e. 18 respondents from the age

below 20 years.

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51

Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR

Does not affect the performance when

SD D N A SA MEAN STD.DEV

f

%

f

%

f

%

f

%

f

%

1 Being insulted and neglected at the work place

105

100

75

50.

14

14.3

8

3.8

8 3.8

1.75

1.00

2 Under estimating me.

56

26.7

87

41.4

39

18.6

17

8.1

11

5.2

2.23

1.04

3 Allotted unproductive work

68

32.4

95

45.2

23

11.0

17

8.1

7 3.3

2.04

1.05

4 Criticize behind the back

89

42.4

84

40.0

24

11.4

8

3.8

5 2.4

1.89

.87

5 Passing indirect comments

83

39.5

76

36.2

23

11.0

13

6.2

15

7.1 2.05

1.39

6 Send signals that I am not valuable employee 95 45.2 68 32.4 25 11.9 13 6.2 9 4.3 1.91 1.19

7 Repeated reminders of mistakes 86 41.0 45 21.1 42 20.1 27 13.0 10 4.8 2.19 1.51

8 Excessive monitoring on activities 88 41.0 60 28.1 35 16.7 15 7.1 12 5.7 2.06 1.38

9 Allotted unmanageable work

88

41.9

60

28.6

35

16.7

15

7.1

12

5.7 2.06

1.38

10 Ignore the presence

75

35.7

64

30.5

25

11.9

17

8.1

29

13.8

2.33 1.92

11 Indirect pressure of

not to claim something which entitled to.

170

81.0

25

11.8

10

4.8

4

1.9

1 0.5

1.29

.47

12 Withholding information

95

45.2

40

19.0

33

15.7

40

19.0

2

1.0

2.11

1.44

13 Lack of supervision

105

50

31

14.8

42

20.0

26

12.4

6

2.9

2.03

1.45

14 Lack of top management involvement in professional growth

93

44.3

72

34.3

19

9.0

25

11.9

1

0.5

1.90

1.04

Table 1.5 Responses of the respondent related to bullying (n=210)

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52

Prastuti: Vol. 5, No. 1, July 2016

Test Value = 3

Tested at 95% confidence level/ 5% significance level

Null Hypotheses

t

Sig. (2 -

tailed)

Result of

Null Hypothesis

Being insulted and neglected at the work place does not ha ve an effect on work place productivity.

17.58

.000

Rejected

Under estimating me does

not have an effect on work place productivity.

10.54

.000

Rejected

Allotted unproductive work

does not have an effect on work place productivity.

13.08

.000

Rejected

Criticize behind the back

does not have an effect on work place productivity.

19.16

.000

Rejected

Passing indirect comments does not have an effect on work place productivity.

9.86

.000

Rejected

Send signals that I am not valuable employee do not have a n effect on work place productivity.

13.07

.000

Rejected

Repeated reminders of mistakes does not have an effect on work place productivity. 7.73 .000 Rejected

Excessive monitoring on activities does not have an effect on work place productivity.

9.83 .000 Rejected

Allotted unmanageable work does not have an effect on work place productivity.

9.83

.000

Rejected

Ignore the presence does not have an effect on work place productivity.

4.97

.000

Rejected

Indirect pressure

of

not to claim something whi ch entitled to does not have an effect on work place productivity.

52.4

.000

Rejected

Withholding information does not have an effect on work place productivity.

8.88

.000

Rejected

Lack of supervision does not have an effect on work place productivity.

9.65

.000

Rejected

Lack of top management involvement in professional growth does not have an effect on work place productivity. 15.2 .000 Rejected

Table 1.6 One-Sample Tests for Convenience

* Hence the results are similar to accepting a null hypothesis.

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53

Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR

Frequency Percent Valid Percent Cumulative

Percent

Valid

BELOW 20

18

8.6

8.6

8.6

20-30

45

21.4

21.4

30.0

30-40 58 27.6 27.6 57.6

40-50

31

14.8

14.8

72.4

50-60

24

11.4

11.4

83.8

ABOVE 60

34

16.2

16.2

100.0

Total 210 100.0 100.0

Table 1.7 AGE wise Categories of the Respondents

Frequency Percent Valid Percent Cumulative

Percent

Valid

MALE 144 68.6 68.6 68.6

FEMALE

66

31.4

31.4

100.0

Total

210

100.

100.0

Table 1.8 GENDER wise Categories of the Respondents

Table 1.8 highlights that the highest number of

respondents i.e. 144 out of 210 are male such as 68.6

percent and remaining 31.4 percent are female i.e. 66 out

of 210.

Table 1.9 highlights the relationship between age and

workplace productivity of the respondents in private

organizations. The ANOVA result at 5 % of significant level

shows that there is significant difference found as we

reject the hypothesis. It is found that the employee’s

productivity are getting affected by workplace bullying.

Table shows that the relationship between gender and

workplace productivity of the respondent in private

sectors. The Anova result 5% of significance level, it found

that the employees are getting affected by workplace

bullying and shows that there is no significant difference

found in the in the various gender group of the

respondents like being insulted and neglected, Criticizing

behind the back, Allotment of unmanageable work,

Ignoring the presence, Lack of top management

involvement in professional growth. But there is

significant difference like under estimating, allotted

unproductive work, passing indirect comments, Sending

signals that I am not valuable employee, repeated

reminders of mistakes, Indirect pressure not to claim

something which entitled to, Withholding information,

Lack of supervision.

Finding

It is found that the employees of insurance and banking

sector are getting affected by workplace bullying on the

various age groups and similarly on the basis of gender

group, it is found that majorly the employees’

productivity get affected. The most important reasons are

sending signals that employees are not valuable, being

insulted and neglected at the work place, indirectly

pressurize not to claim something which they entitled for,

lack of top management involvement in professional

growth of an employee.

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54

Prastuti: Vol. 5, No. 1, July 2016

Suggestion & Recommendations

Private organization should make strongly policies for

workplace bullying and simultaneously take some

measures for excessive working hours, improving working

culture, evenly distribute the responsibilities on the

shoulders of the employees ,form a culture of give respect

and take respect, efforts for doing a particular task must

be valued by giving appreciation and recognition , reward

for their hard work, supervisor is responsible for healthy

environment ,it builds healthy relationship in an

organizations .

Future implications

This study could be helpful for the top level management

of private organizations which help to retain and motivate

the efficient employees taking into account in different

parameters mentioned in the above study.

References

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bullying on employee performance in the public

sector ,ASIAN JOURNAL OF MANAGEMENT

RESEARCH ,Online Open Access publishing platform

for Management Research, ISSN 2229 – 3795 ,pp

277-289.

• Mariam Ciby1 R.P. Raya1 , Workplace Bullying: A

Review of the Defining Features, Measurement

Methods and Prevalence across Continents ,IIM

Kozhikode Society & Management Review 4(1)

38–47 © 2015 Indian Institute of Management

Kozhikode SAGE Publications, sagepub.in /

home.nav, DOI:10.1177/2277975215587814.

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meaner workplace: Strategies for handling bullies

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place, pp145-186. In, Einarsen, S., Hoel, H., Zapf, D.,

& Cooper, C.L. (eds.), Bullying and emotional abuse in

the workplace: International Perspectives in

Research and Practice. London: Taylor and Francis.

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bullying, job satisfaction and Job performance

among employees in a federal hospital in Nigeria.

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(23), pp 116-123.

• EFFECTS OF BULLYING, Marlon de Lara,Cedric D Jale

Arceo,Undergraduate Thesis , College of

Criminology,Nueva Ecija University of Science and

Technology, Cabanatuan City.

• Agervold, M. (2007). Bullying at work: A discussion of

definitions and prevalence, based on an empirical

study. Scandinavian Journal of Psychology, 48(2),

161–172. doi: 10.1111/j.14679450.2009.00710.x.

• Agervold, M., & Mikkelsen, E.G. (2004). Relationship

between bullying, psychosocial work environment

and individal stress reactions. Work & Stress, 18(4),

336–351. doi: 10.1080/ 02678370412331319794.

• Baguena, M.J., Belena, M.A., Toldos, M.D., &

Martinez, D. (2011). Psychological harassment in

the workplace: Methods of evaluation and

prevalence. The Open Criminology Journal, 4(Suppl

2-M7), 102–108.

• Baron, R.A., & Neuman, J.H. (1996). Workplace

violence and workplace aggression: Evidence on

their relative frequency and potential causes.

Aggressive Behavior, 22(3), 161–173.

• Vie, T.L., Glaso, L., & Einarsen, S. (2011). Health

outcomes and self-labeling as a victim of workplace

bullying. Journal of Psychosomatic Research, 70(1),

37–43. doi: 10.1016/j. jpsychores.2010.06.007.

• Yildrim, D. (2009). Bullying among nurses and its

effects. International Nursing Review, 56(4),

504–511. Zabrodska, K., & Kveton, P. (2013)

• Prevalence and forms of workplace bullying among

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Rights Journal, 25(2), 89–108. doi: 10.1007/s10672-

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S.no Parameters F-value Sig.

1 Work place productivity affected by being insulted and neglected.

5.467

.000

2 Work place productivity affected by Under estimating.

36.143

.000

3 Work place productivity affected by Allotted unproductive work.

28.688

.000

4 Work place productivity affected by Criticizing behind the back.

4.828

.000

5 Work place productivity affected by Passing indirect comments.

10.088

.000

6 Work place productivity affected by Sending signals that I am not valuable employee. 4.919

.000

7 Work place productivity affected by Repeated reminders of mistakes. 7.421 .000

8 Work place productivity affected by Excessive monitoring on activities. 2.689 .022

9 Work place productivity affected by Allotment of unmanageable work.

41.202 .000 10 Work place productivity affected by Ignoring the presence.

9.740

.000 11 Work place productivity affected by Indirect pressure not to claim

something which entitled to.

22.262

.000 12 Work place productivity affected by Withholding information.

18.637

.000

13 Work place productivity affected by Lack of supervision

16.788

.000

14 Work place productivity affected by Lack of top management involvement in professional growth. 15.239 .000

Table 1.9 Relationship Between age and work place bullying effects

S.no Parameters F-value Sig.

1 Work place productivity affected by being insulted and neglected.

3.441

.065

2 Work place productivity affected by Under estimating.

22.907

.000

3 Work place productivity affected by Allotted unproductive work.

19.701

.000

4 Work place productivity affected by Criticizing behind the back.

3.554

.061

5 Work place productivity affected by

Passing indirect comments.

9.701

.002

6 Work place productivity affected by Sending signals that I am not valuable employee. 12.419

.001

7 Work place productivity affected by Repeated reminders of mistakes. 31.708 .000

8 Work place productivity affected by Excessive monitoring on activities. 2.898 .090

9 Work place productivity affected by Allotment of unmanageable work.

3.045 .082 10 Work place productivity affected by Ignoring the presence.

1.152

.284 11 Work place productivity affected by Indirect pressure not to claim

something which entitled to.

4.786

.030 12 Work place productivity affected by Withholding information.

15.539

.000

13 Work place productivity affected by Lack of supervision

7.137

.008

14 Work place productivity affected by Lack of top management involvement in professional growth. 1.067 .303

Table 2.0 Relationship Between Gender and work place bullying effects

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Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR

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In recent past most significant social transformation in India has been the increase in dual earning couples. Therefore the objective of the present research was to identify the gender role ideology prevalent in single and dual earning couples. To assess the gender role ideology a self constructed tool was filled by 48 couples from single earning families and 46 couples from dual earning families. The results depict that 75% males from single earner families and 67.39% males from dual earner families were having traditional gender ideology. Males were more stereotyped rather than females in single (t=5.61) as well as dual earning families (t=5.83). Majority of males and females, who were having traditional gender ideology, responded more on traditional perception (52.78%, 67.74%) for its justification. There is a significant difference in attitude of females of single earning families and dual earning families. It is evident from t value (6.06) that females of single earner families were more stereotyped in comparison to females of dual earner families. Females of dual earner families want more sharing of roles and responsibilities (54.35%) than their counterparts (32.61%). Females having egalitarian gender ideology justified it on the basis of equal division of labour. It shows that gender role perception is showing greater changes in dual earning families. Although the change is very slow but the change is occurring.

Keywords: Single earning families, Dual earning families, Gender role ideology.

Assessment of Traditional andEgalitarian Gender Role Ideology amongSingle and Dual Earning Families

Abstract

Introduction

In the recent past, the most significant social

transformation in India has been the increase in dual-

earning families. The families where husband and wife

both are doing earning activities and man is not only the

bread winner but female also works as second bread

winner are considered as dual earning families. On the

other hand, "traditional family" structure in which

mothers are the caregivers and fathers are the income

earners is known as single earning families. With

continuous changes occurring in the society like women

influx in the workforce, it becomes imperative to assess

the gender role ideology existing among single and dual

earning couples.

The term gender role denotes a set of behavioral norms.

Gender role ideology refers to attitudes regarding the

appropriate roles, rights, and responsibilities of women

and men in society. Such attitudes typically range along a

continuum from traditional to nontraditional.

Traditional gender ideologies emphasize the value of

distinctive roles for women and men. According to

traditional gender ideology, man plays the role of

provider while woman plays the role of caretaker in

family. Egalitarian ideologies, by contrast, endorse and

value men's and women's equal and shared

breadwinning and nurturant family roles.

Gender roles can be a source of satisfaction and also of

tension (Barnett, 2001). The unequal division of both

household labor and childcare, with women doing the

bulk of the work, is thought to contribute to the reported

lower marital satisfaction for women. Therefore the

present study was conducted to identify the existing

gender role ideology in single earning and dual earning

couples.

Dr. Neha Saxena*

* Lecturer, Department of Human Development and Family Studies, Institute of Home Science, Khandari, Agra.

56

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Objectives of the Study

The objectives which were undertaken for the research

were as follows:

1. To study the gender role ideology of males and

females of single earning couples.

2. To study the gender role ideology of males and

females of dual earning couples.

Sample

Forty eight couples from single earning families and forty

six couples from dual earning families ageing between 25-

45 years were purposively selected from Agra city by

using multistage stratified sampling method. The

important criterion for selection of the subjects was that

families must be nuclear in nature and should not have a

full time servant.

Tool

A self prepared Gender Role Perception Scale was used to

assess perception of husband and wife for gender role

ideology. Total 12 items were designed to achieve the

objective. This scale was filled up by husband and wife

separately. In this scale three point scale has been used. A

score of 1 was assigned when male respondent

responded on male option for male stereotype and 2 was

given for responding on female or either for male

stereotypes. Similarly, 1 was given for female respondent

when she responded on female option for female

stereotypes and 2 was assigned for responding on male or

either option for female stereotypes.

Results

The table 1 shows that 79.17% males and 66.67% females

of single earner families think that responsibility of

arranging money for fulfillment of essential needs should

be performed by only male. About 96% males and 79.17%

females of single earner families think that security of

family members should be a duty of males. Majority of

males and females replied that being a head of the family

is a role of man, as the figures show (87.50% and 72.92%

respectively). Similarly pattern was found for other

responsibilities also. Thus the results showed that most of

the male and females of single earning families were

having traditional gender role ideology. However, in all

these roles and responsibilities females have always a

higher willingness to do role swapping rather than males.

It is clear from the table 2 that majority of males from

single earner families think that household tasks like

cleaning of the house, cooking and child rearing should be

done only by females, as evident from the results

(95.83%, 87.50%, and 85.42% respectively). Most of the

males believe that females should be responsible for

caretaking of parents and family members. Interestingly

62.5% males think that guidance to the child should be

given by both the partners. Similarly, females also think

that roles of females should be done only by females as

they can perform them easily and effectively which shows

their traditional gender role ideology.

57

Assessment of Traditional and Egalitarian Gender Role Ideology among Single and Dual Earning Families

S. No.

Roles and Responsibilities

Single Earner Couples

Male

Female

M F E M F E

N % N % N % N % N % N %

1 Earning 38 79.17 0 0.00 10 20.83 32 66.67 1 2.08 15 31.25

2 Providing security 46 95.83 0 0.00 2 4.17 38 79.17 1 2.08 9 18.75

3 Head of the family 42 87.50 0 0.00 6 12.50 35 72.92 1 2.08 12 25.00

4 Taking major Decision 34 70.83 0 0.00 14 29.17 30 62.50 2 4.17 16 33.33 5 Organizing ceremonies 36 75.00 2 4.17 10 20.83 33 68.75 4 8.33 11 22.92 6

Documentation

33

68.75

3

6.25

12

25.00

29 60.42

2

4.17

17

35.42

Table 1: Responses of Single Earner Couples on Male Gender Role Ideology

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The table 3 shows that 52.12% of males and 60.87%

females of dual earning families want sharing of the major

role, i.e. arranging money for the fulfillment of needs

showing egalitarian gender role ideology. However, most

of the males and females of dual earning families feel that

being head of the family (73.91%) and providing security

to family members (67.39% and 69.57% respectively) is

the responsibility of males. While comparing males and

females of dual earning families on taking major

decisions, organizing ceremonies and documentation, it

was found that willingness for gender role swapping was

higher in females (63.04%, 60.87% and 50.00%) rather

than males (23.91%, 26.09% and 28.26%).

The table 4 shows that majority of males (80.43%,

73.91%, and 82.61% respectively) as well as females

(82.61%, 80.43%, and 78.26% respectively) from dual

earning families think that household tasks like cleaning

of the house, cooking and child rearing should be done

only by females. It was interesting to note that 56.52%

males think that guidance to the child should be given by

both the partners but 45.65% females perceive it as their

responsibility.

The table 5 shows the percentage of males and females

having traditional and egalitarian gender ideology. The

table depicts that 75% males of single earner families

were having traditional gender ideology, while only 25%

males of single earner families were having egalitarian

gender ideology. It was interesting to know that females

of single earner families were less stereotyped (68.75%)

than males (75%). Females of single earner families want

more sharing of roles and responsibilities (31.25%) rather

than males (25%).

Similarly, 67.39% males of dual earner families were

having traditional gender ideology, while only 32.61%

males of dual earner families were having egalitarian

gender ideology. Again, it was quite interesting to note

that females of dual earner families were less stereotyped

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Prastuti: Vol. 5, No. 1, July 2016

S. No

.

Roles and

Responsibilities

Single Earner Couples

Male

Female

M F E M F E

N % N % N % N % N % N %

1 Cleaning of house 0 0.00 46 95.83 2 4.17 1 2.08 44 91.67 3 6.25

2 Cooking 0 0.00 42 87.50 6 12.50 1 2.08 41 85.42 6 12.50

3 Child rearing 0 0.00 41 85.42 7 14.58 1 2.08 42 87.50 5 10.42

4Caring family

members 3 6.25 34 70.83 11 22.92 5 10.42 36 75.00 7 14.58

5 Caring Parents

4

8.33

36

75.00

8

16.67

4

8.33

37

77.08 7

14.58

6 Child Guidance

7

14.58

11

22.92

30

62.50

8

16.67

31

64.58 9

18.75

Table 2: Responses of Single Earner Couples on Female Gender Role Ideology

S. No

.

Roles and

Responsibilities

Dual Earner Couples

Male

Female

M F E M F E

N % N % N % N % N % N %

1 Earning 22 47.83 0 0.00 24 52.17 18 39.13 0 0.00 28 60.87

2 Providing security 31 67.39 0 0.00 15 32.61 32 69.57 0 0.00 14 30.43

3 Head of the family 34 73.91 0 0.00 12 26.09 34 73.91 0 0.00 12 26.09

4 Taking major Decision 31 67.39 4 8.70 11 23.91 16 34.78 1 2.17 29 63.04

5 Organizing ceremonies 32 69.57 2 4.35 12 26.09 15 32.61 3 6.52 28 60.87

6 Documentation

30

65.22

3

6.52

13

28.26

19

41.30 4

8.70

23

50.00

Table 3: Responses of Dual Earner Couples on Male Gender Role Ideology

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(45.65%) than males (67.39%). Females of dual earner

families want more sharing of roles and responsibilities

(54.35%) than their counterparts (32.61%). In total, males

(71.28%) were more having traditional gender role

ideology in comparison to females (57.45%).

The table 6 shows that males of single and dual earning

families, who were having traditional gender ideology,

responded more on traditional perception (52.78%,

67.74%) for its justification. Working ability stood second

as the reason for having traditional gender ideology, as

25% and16.13% males have given this reason for having

such kind of attitude. Again among the females of single

and dual earning families (75.76%, 67.74%) responded

more on traditional perception for having traditional

gender ideology. Interestingly, 14.29% females in dual

earning families were having traditional gender ideology

just because of their self motivation.

The table 7 shows that males of single and dual earning

families had egalitarian gender ideology because of self

motivation (41.7%, 53.3%). It was interesting to note that

33.3% males of single and dual earning families think that

there should be a equal division of labour, while 25%

males of single earning families and 6.7% males of dual

earning families think that females are also educated so

there should be a sharing of responsibilities. On the other

side, females of single and dual earning families had

egalitarian gender ideology (53.3%, 60%) which was

justified on the grounds of equal division of labour. Again,

26.7% females of single earning families and 24% females

of dual earning families were self motivated behind

egalitarian gender ideology. In total, males and females

showed the similar trends.

59

Assessment of Traditional and Egalitarian Gender Role Ideology among Single and Dual Earning Families

S. No

.

Roles and

Responsibilities

Dual Earner Couples

Male

Female

M F E M F E

N % N % N % N % N % N %

1 Cleaning of house 0 0.00 37 80.43 9 19.57 0 0.00 38 82.61 8 17.39

2 Cooking 0 0.00 34 73.91 12 26.09 0 0.00 37 80.43 9 19.57

3 Child rearing 0 0.00 38 82.61 8 17.39 0 0.00 36 78.26 10 21.74

4Caring family

members 3 6.52 31 67.39 12 26.09 7 15.22 28 60.87 11 23.91

5 Care of Parents 5 10.87 33 71.74 8 17.39 5 10.87 24 52.17 17 36.96

6 Child Guidance

11

23.91

9

19.57

26

56.52

7

15.22

21

45.65 18

39.13

Table 4: Responses of Dual Earner Couples on Female Gender Role Ideology

S. No

.

Gender Ideology

Single Earner Couples Dual Earner Couples Total

Male Female Male Female Male Female

N % N % N % N % N % N %

1 Traditional (12-16) 36 75 33 68.75 31 67.39 21 45.65 67 71.28 54 57.45

2 Egalitarian (17-22) 12 25 15 31.25 15 32.61 25 54.35 27 28.72 40 42.55

Table 5: The Percentage of Males and Females of Single Earning Families and Dual EarningFamilies having Traditional and Egalitarian Gender Role Ideology

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Prastuti: Vol. 5, No. 1, July 2016

Table 6: The Percentage Responses of Single Earner Couples and Dual Earner Couples forthe Reason of having Traditional Gender Role Ideology

S. No

.

Reason

Traditional Gender Ideology

Single Earner Couples

Dual Earner Couples

Total

Male Female Male Female Male Female

N % N % N % N % N % N %

1 Traditional Perception 19 52.78 25 75.76 21 67.74 16 76.19 40 59.70 41 75.93

2 Education 4 11.11 2 6.06 3 9.68 1 4.76 7 10.45 3 5.56

3 Working ability 9 25.00 1 3.03 5 16.13 1 4.76 14 20.90 2 3.70

4 Equal division of labour 1 2.78 3 9.09 0 0.00 0 0.00 1 1.49 3 5.56

5 Self motivation

3

8.33

2

6.06

2

6.45

3

14.29 5

7.46

5

9.26

S. No

.

Reason

Egalitarian Gender Ideology

Single Earner Couples Dual Earner Couples Total

Male Female Male Female Male Female

N % N % N % N % N % N %

1 Traditional Perception 0 0 0 0 1 6.7 0 0 1 3.7 0 0

2 Education 3 25.0 2 13.3 1 6.7 3 12 4 14.8 5 12.5

3 Working ability 0 0.00 1 6.7 0 0.00 1 4 0 0 2 5

4 Equal Division of labour 4 33.3 8 53.3 5 33.3 15 60 9 33 23 57.5

5 Self motivation 5 41.7 4 26.7 8 53.3 6 24 13 48.2 10 25

Table 7: The Percentage Responses of Single Earner Couples and Dual Earner Couples forthe Reason of having Egalitarian Gender Role Ideology

Working Status Gender Mean SD t p

Single Earner Couples Male 13.44 3.45

5.61 .01 Female 16.82 2.35

Dual Earner Couples Male 14.82 2.98

5.83 .01 Female 20.26 3.09

Total Male 14.12 4.16

7.12 .01 Female 18.5 4.27

Table 8: The Mean, SD and t values of Gender Role Perception in Single and Dual Earner Couples

Gender Working Status Mean SD t p

Male SEF 13.44 3.45

2.08 NS DEF 14.82 2.98

Female SEF 16.82 2.35 6.06 .01 DEF 20.26 3.09

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Table 8 shows that males were more stereotyped rather than females in single (t=5.61) as well as dual earning families (t=5.83). In case of total males and females, the similar trend was seen. While comparing males of single earner families and dual earner families, the scores were about to same. The t value (2.08) also shows that there was no significant difference in gender role perception of males of single earning families and dual earning families. It is interesting to know that there is a significant difference in attitude of females of single earning families and dual earning families. Females of single earner families were more stereotyped (16.82) in comparison to females of dual earner families (20.26). The t value (6.06) also shows the same.

Discussion

Perhaps the reason behind having traditional gender role ideology was typical traditional belief that male’s role is instrumental, while role of female is expressive. Besides this women are by nature caring, nurturing, giving and sacrificing. This can be a big cause of maintenance of traditional gender role ideology among female respondents. For women who have not entered the work force it may be reasoned that getting and pursuing a job is not an easy task therefore females use safe guarding techniques (Adler, 1956) by saying that I did not want to take up a job and have therefore stressed that the role of provider be performed by males only.

Lower level of swapping among male respondents can be explained on the basis two reasons. Firstly, it is more convenient for the man to come home and watch TV rather than enter the kitchen. Then why should he take the additional responsibility when societal demands do not require him to do so. Secondly, in some cases he may not be so strong willed to be able walk against the wind. That is to say he is unable to challenge societal norms.

Feldman (2000) have also found that since the 1970s, the gender role attitudes of both men and women have become less traditional. Gender schema theory (Kaufman, 2000) also supports the fact as it says that gender schema of person is accumulated according to the experience. Perhaps the dual earning couples have assimilated the changed circumstantial requirement and have accommodated by adaptation. Again it would be wrong to say that all dual earning couples have undergone this transition. No wonder the perceptual change has occurred in only a segment of sample.

It was very interesting to note that females have always more willingness to do swapping rather than males because swapping will ease the strain of women

and not the man. Males of dual earning families were more in favour of swapping rather than males of single earning families. Similarly females of dual earning families were found more willing for gender role swapping in comparison to females of single earning families. The reason behind this finding is that dual earning couples have to perform all the roles and responsibility in the limited time therefore they use sharing technique as a coping mechanism. They understand that call of the day is to work together and share responsibility for living a healthy life.

Conclusion

In conclusion, it can be said that most of the males and females have traditional gender role ideology, but the shift toward egalitarian gender role ideology is occurring gradually. Perception of dual earner couples is changing more rapidly than single earner couples. It is becoming vital that rather than blaming each other for the situation, men and women should be increasingly willing to work together to learn about their new roles. Successful marriage partners are the ones who learn to negotiate and share tasks. Household work can become lot more exciting, innovative and experimented if both gender do not show case the jobs in water tight compartment based on traditions.

References

• Barnett, R.C., & Hyde, J.S. (2001). “Women, men, work and family: An expansionist theory”. American Psychologist. pp 781-796.

• Blanco G. & Feldman L. (2000). “Home-making responsibilities and health of working women”, Universidad Central, Caracas, Venezuela, Salud Publica Mex. Vol 42(3). pp 217-225.

• Friedman S.D. & Greenhause J.H. (2000). “Work and family – Allies or enemies?” New York: Oxford University Press, 2000.

• Kaufman G. (2000). “Do Gender Role Attitudes Matter?: Family Formation and Dissolution Among Traditional and Egalitarian Men and Women”. Journal of Family Issues. vol 21(1). pp 128 – 144.

• Pasley K., Kerpelman J., and Guilbert D.E. (2001). “Gendered Conflict, Identity Disruption, and Marital Instability: Expanding Gottman's Model”. Journal of Social and Personal Relationships. Vol 18(1). pp 5 – 27.

• Raj A. (2004). “Changing Gender Roles”. Journal of Comparative Family Studies, Vol.35.

• Stoeva, A. Z., Chui, R. K. and Greenhaus, J. H. (2002). “Negative affectivity, role stress, and work-family conflict”. Journal of Vocational Behaviour. pp 1-16.

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The main aim of the current study was to examine the effect of emotional intelligence on talent retention through employee engagement. As talent retention is an outcome of employee engagement hence its worth to study it in relation to engagement. Data was gathered from 100 respondents of IT sector using random sampling. .The study used a self administered questionnaire to collect the primary data. Participant completed two surveys: (1) Emotional Intelligence Appraisal (Bradberry and Greaves , 2003), which measures (a) self–awareness, (b) self–management,(c) social awareness, (d) relationship management, and (e) overall emotional intelligence; and (2) Employee engagement questionnaire (Schaufeli et al., 2006) which assess employees engagement . The results were in the expected direction and fulfilled the research aims of the current study. The statistic results revealed that there is a significant strong relationship between the two main variables of the study, namely EI and Employee engagement. Out of the four variables of Emotional intelligence social awareness and relationship management was found to have a positive and significant relationship with employee engagement. The present study indicated that a good level of engagement may lead to high employee retention.

Keywords: Emotional intelligence, Employee engagement, Self awareness, Self management, Social awareness, Relationship management, Retention.

Emotional Intelligence andEmployee Engagement: Key to Retention

Abstract

Introduction

With increase in globalization and competitiveness,

retaining employees is becoming a very difficult

challenge. In today’s uncertain environment,

organization’s success depends on its ability to recruit,

employ and retain skilled employees. Competition and

the lack of availability of highly talented and skilled

employees make finding and retaining talented

employees’ major priorities for organizations (Fegley,

2006).

In order to attract and retain the best talent anywhere in

the world, an organization must have the engaged

workforce. Engaged employees are those who work to

promote the organization by performing above and

beyond of what they are expected to do, even when the

conditions in which they work becomes unfavorable.

Since human asset plays a vital role in achieving success,

researchers are seeking for appropriate managerial ways

to rise up the level of employees’ engagement. Today’s

organizations demands high emotionally intelligent

managers who could effectively understand their own

emotions and those of others. According to Rosete and

Ciarrochi (2005), managers who rate higher in EI are in a

better position to develop effective and long lasting

relationships with other groups. So, emotional

intelligence is one of the key determinants of success in

leading people in business.

In this study we hypothesized that the more emotional

intelligent the manager was, the more likely the

employees would be to demonstrate the behavior that

define employee engagement. The finding of this

research is discussed for building talent retention which

is an outcome of employee engagement.

Priyanka Jain *Dr. (Prof) Taranjeet Duggal**

* Research Scholar, Amity University** Professor, Amity University

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Emotional Intelligence

The construct of Emotional Intelligence (EI) is one of the

most frequently researched topics in organizational study

as it is a significant aspect in interpreting and analyzing

human behavior at work. The concept of emotional

intelligence evolved from the theory of social intelligence,

which involves the ability to understand and interact with

others. The term emotional intelligence was first used by

Salovey &Mayer (1990). According to Salovey & Mayer

emotional intelligence is defined as “the ability to

monitor one's own and others' feelings and emotions, to

discriminate among them and to use this information to

guide one's thinking and actions”. This term was later

popularized by Daniel Goleman’s book. “Why it matters

more than IQ”. To achieve the objectives of the

organization, a manager needs to understand their

employees’ feelings and emotions and build strong and

close relationships with them. Cherniss (2003) noted that

a leader who has a high level of emotional intelligence will

have a greater effect on an organization than a leader with

a low level of emotional intelligence.

In this research paper, emotional intelligence has been

discussed on the basis of four- component model of

Goleman. Hence it has been discussed with the help of

following dimensions:

• Self – awareness – Self awareness is being

conscious of one’s emotions and how they

affect thoughts and behavior.

• Self – management- It is the ability to control

impulsive feelings and behaviors, taking

initiative and managing emotions.

• Social awareness – social awareness is

understanding the emotions and concerns of

other‘s people and recognizing the power of

dynamics in a group or organization.

• Relationship management- It is all about

knowing how to develop and maintain good

relationships

Employee Engagement

The concept of employee engagement is relatively recent.

The term “employee engagement” first formally

appeared in academic literature in 2002 (Harter et al.,

2002), defined as “the individual’s involvement and

satisfaction as well as enthusiasm for work” (p. 269). The

literature concerning employee engagement poses a

challenge due to the fact that there is no one universally

applied definition to cover the topic of employee

engagement. For example, Saks (2006) defined

engagement as ‘‘the degree to which an individual is

attentive and absorbed in the performance of their roles’’

(p. 602). Harter et al. (2002) defined employee

engagement as an ‘‘individual’s involvement and

satisfaction with as well as enthusiasm for work’’ (p. 269).

Macey & Schneier, 2008 defined it as the positive feeling

that employees have towards job and also the motivation

and effort they put into it. Schaufeli and Bakker (2003)

defined engagement as a positive, fulfilling, work-related

state of mind characterized by vigor, dedication and

absorption. Finally, Kahn (1990) was accredited with

conceptualizing the term personal engagement which he

defines as ‘‘the harnessing of organization members’

selves to their work roles.’’ In examining these definitions

collectively, employee engagement would appear to be

an amalgamation of several, older I/O psychology

constructs such as organizational commitment,

organizational citizenship behaviors, and job satisfaction.

Many organizations believe that employee engagement is

a dominant source of competitive advantage and thus,

have been drawn to its reported ability to solve

challenging organizational problems such as increasing

workplace performance and productivity amid

widespread economic decline (Macey andSchneider,

2008; Macey et al., 2009). Engaged employees within an

organization provide a competitive advantage to

organizations, as explained by the resource-based view

(RBV) of the firm (Joo and Mclean, 2006), and hence there

is a need to continuously engage employees. Employee

engagement as a key to the retention of talent (one-of-a-

kind hire in 100 employees; Glen, 2006) is an area in which

the lead has been taken by practitioners (Parsley, 2006;

Baumruk et al., 2006; Woodruffe, 2005; Gallup

Management Journal, 2006; Bennett and Bell, 2004; Hay

Group, 2002).

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Emotional Intelligence and Employee Engagement: Key to Retention

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Employee Retention

Employee retention refers to the ability of an organization

to imbibe its employees. Retaining of employees is

critical to business success because it is necessary to

retain talented and high-rated performers and keep them

from getting poached to competitors. Cascio (2003)

describes retention as initiatives taken by management to

keep employees from leaving the organization, such as

rewarding employees for performing their jobs

effectively; ensuring harmonious working relations

between employees and managers; and maintaining a

safe, healthy work environment. Since low talent

retention produces a substantial drain on corporate

resources, leaders need to know which practices work

and what they should focus on to retain and motivate

their workforce. For instance, an employee engagement

strategy allows employees to be more connected and

involved with the organization. Romzek (1989) analyzed

that employees having higher involvement in their work

and organization have better relations with their families

and social environment which creates a psychological

attachment with the organization. Employees who are

satisfied have higher intentions of staying with an

organization, which results in decreased turnover

(Mobley et.al).

Emotional intelligence and employee engagement: Past research

Only a paucity of empirical research has been published

on the relationship between EI and engagement. Palmer,

B.R & Gignac, G (2012) conducted an empirical research

to find out the relationship between emotional

intelligence of managers and their employees level of

engagement. The findings revealed that EI of mangers

were positively correlated with employee engagement

scores. The study found that leaders with high EI were

found to have mostly engaged and nearly engaged

employees. Duran et al. (2010) examined the impact of EI

within employees as a personal resource that facilitates

employee engagement within themselves. Ravichandran

et.al (2011) conducted a study on 119 employees of IT

companies of Chennai to find out the relationship

between emotional intelligence and employee

engagement. The study found a significant association

between emotional intelligence and work engagement

behavior.

In light of the above, to our knowledge, there are very few

published research available on the possible association

between manager rated EI and subordinate self-rated

employee engagement. In order to fulfill this existing gap

this research paper aims to analyze the impact of

managers EI on employee engagement which in turn

improves the retention of employees.

Research Framework

In line with the view suggested in the literature, the study

formulated the research hypotheses as below

(i) H1: Self-awareness is a significant predictor of

employee engagement;

(ii) H2: Self-management is a significant predictor

of employee engagement;

(iii) H3: Social awareness is a significant predictor of

employee engagement,

(iv) H4: Relationship management is a significant

predictor of employee engagement.

Research Methodology

This section discusses sample size, data collection along

with suitable statistical test used for evaluating

hypotheses.

Figure 1: Research Framework

Dimensions of Emotional Intelligence

Self awareness Self

Management

Social

awareness

Relationship

Management

Employee

Engagement

Enhancing of Employee

Retention

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Sample and Data Collection

A total of 120 self-administered questionnaires were

distributed at managerial level. Against the targeted

sample of 120 questionnaires, 100 questionnaires have

been collected and analyzed. Exploratory study used a

sample of 100 managers to find out the relationship

between emotional intelligence and employees

engagement. The questionnaire were distributed to the

middle level managers to rate their own level of

engagement and supervisor’s level of emotional

intelligence.

Data Collection Instrument

In order to collect the data structured questionnaire was

designed. The entire questionnaire was divided into three

sections. The first section inquired about the

demographic information of the respondents. The second

focused on EI (Independent variables) and third section

focused on employee engagement (Dependent variable).

The Emotional Intelligence Appraisal developed by

Bradberry and Greaves (2003) measures 4 dimensions of

emotional intelligence including: (1) self–awareness, (2)

self–management, (3) social awareness, (4) relationship

management, and it provides as overall score for

emotional intelligence. Items target the existence of skills

reflective of the above components and are rated using a

six point frequency scale where 1 reflects “never”

exhibiting a behavior and 6 reflects “always” exhibiting a

behavior. The statistical validity indicates that the

reliabilities for the four components of Goleman’s

Emotional Quotient model, measured through the

Emotional Intelligence Appraisal, yield coefficient alpha’s

ranging from .79 to .90

Employee engagement was measured using the short

version of the Utrecht Work Engagement Scale (UWES)

(Schaufeli et al., 2006), using a seven-point Likert scale

(1Not probable; 7Most probable).

Findings

Descriptive Analysis

Respondents for the present study are 100 individuals

working in different IT Companies of Delhi /NCR of India.

From these individuals 65 respondents were male, while

the rest consisted of female respondents. Of the subjects,

only 23 percent were represented by the age of 25 and

less years old, while 38 percent came from 25-30 years of

age. On the other hand, 27.5 percent were from 35-40

years of age and 11.5 percent were above 40 years of age.

About 30 percent of the respondents completed their

education up to graduation followed by 49.5 percent of

post graduate respondents as compared to a smaller

number of respondents who pursued higher educations. .

While looking into the designation it was found that 38%

of respondents were managers, 54% of them were middle

level managers and 8% were of other designation. While

drawing the total experience profile of the respondents it

was seen that 50% of them had an experience of 2 to 5

years, followed by 42% with an experience of 5-10 years

and 8% with an experience of 10 to 15 years.

Multiple Regression Analysis � The Relationship between Emotional i n t e l l i g e n c e a n d E m p l o y e e Engagement

Table 1

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .573a

.329 .301 20.172

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a. Pred ic tors : (Constant ) , Re lat ionsh ip

Management, Social Awareness, Self

Management, Self Awareness

As the statistical results shown in table 1, regression

coefficient value on the relationship between Emotional

intelligence and Employee engagement is 0.573. This

shows a strong relationship between the variables. R² is

the square of the multiple correlation coefficients. It

indicates the proportion of the variance of the dependent

variable explained by the independent variable. The R

square is 0.329 which means that 32.9% percentage of

variation in independent variable is explained by the four

dimensions of emotional intelligence but 68.1 percent

remains unexplained.

a. Pred ic tors : (Constant ) , Re lat ionsh ip

Management, Social Awareness, Self

Management, Self Awareness

b. Dependent Variable: Employee Engagement

In the table 2, the result of the Anova showed that the F

ratio obtained (F is 11.634) and the model is significant at

.000.

a. Dependent Variable: Employee Engagement

The regression results in table 3 showed that social

awareness (β = 0.503, p< .05) and relationship

management (β = 0.511, p< .05) are significant

determinants of Employee engagement. While the other

two variables self awareness (β = 0.070, p>0.05) and self

management (β = -0.164, p>0.05) were found not to have

any influence on employee engagement. Thus the

hypothesis H3 and H4 are confirmed.

Discussion and Conclusion

This study is designed to gain an insight into the

development of employee engagement on the basis of

emotional intelligence competencies. It has been

proposed in the study that it is essential for the executives

of the present day business to possess high emotional

intelligence which have an impact on the employees’ level

of engagement. In this study, the EI of managers was

found to substantially correlate with direct report ratings

of employee engagement. The result indicates that out of

the four clusters, the highest scoring is for relationship

management followed by social awareness. It therefore

Table 2

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 18935.380 4 4733.845 11.634 .000a

Residual 38655.610 95 406.901

Total 57590.990 99

Table 3

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 30.031 8.183 3.670 .000

Self Awareness .070 .137 .045 .514 .608

Self Management

-.164

.169

-.084

-.971 .334

Social Awareness

.503

.083

.514

6.057 .000

Relationship Management .511 .243 .185 2.099 .038

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suggests that people who are more competent in social

awareness and relationship management could easily

pave the way for high employee engagement.

In our introduction, we posited that this information may

prove useful to those who are challenged with the task of

improving employee engagement for the purpose of

enhancing talent retention. Indeed the findings of this

investigation suggest that engagement and its outcomes

might increase from increasing the EI of an organization’s

management. Emotional intelligence of managers could

be increased either by providing learning and

development intervention to the mangers or by hiring

and promoting people into management roles that are

high in EI. The possible explanation for this finding might

be that managers high in EI may have an emotional impact

on their employees making them more engaged at work.

Emotionally intelligent leaders would be more acute in

sensing the emotional cues in their subordinates and

hence respond in an appropriate manner. They will be

able to create a favorable emotional climate within the

organization, which fosters positive attitudes which

affects employee engagement and their retention too.

References

• Baumruk, R., Gorman, B. Jr, Gorman, R.E. and Ingham, J. (2006), “Why managers are crucial to increasing engagement”, Strategic HR Review, Vol. 5 No. 2, pp. 24-7.

• Bennett, M. and Bell, A. (2004), Leadership & Talent in Asia, Wiley, Singapore.

• Bradberry T and Greaves J (2003). Emotional intelligence quick book: Everything you need to know, San Diego, CA: Talent Smart Inc.

• Cascio W F (2003), Managing Human Resources, McGraw-Hill, New York.

• Cherniss C (2003). The business case for emotional intelligence, The Consortium for Research on Emotional Intelligence in Organizations. Retrieved N o v e m b e r 8 , 2 0 0 3 , f r o m http://www.eiconsortium.org/research/business_case_for_ei.htm.

• Duran, M. A., Extremera, N., & Rey, L. (2010),“Analyzing the co ntribution of emotional intelligence and core self-evaluations as personal resources to employee engagement”, in Albrecht, S. (Ed.), Handbook of Employee Engagement: Perspectives, Research and Practice, Edward Algar, Northampton, Massachusetts, pp. 209-.217

• Fegley, S. (2006), 2006 Talent Management Survey Report, SHRM Research, Alexandria, VA

• Gallup Management Journal (2006), 12 January, available at: http://gmj.gallup.com.

• Glen, C. (2006), “Key skills retention and motivation: the war for talent still rages and retention is the high ground”, Industrial and Commercial Training, Vol. 38 No. 1, pp. 37-45.

• Joo, B.-K. (Brian) and Mclean, G.N. (2006), “Best employer studies: a conceptual model from a literature review and a case study”, Human Resource Development Review, Vol. 5 No. 2, pp. 228-57.

• Kahn, W.A. (1990), “An exercise of authority”, Organizational Behavior Teaching Review, Vol. 14 No. 2, pp. 28-42.

• Harter, J .K . , Schmidt , F.L . , Hayes, T. L . (2002),“Business unit level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis”,Journal of Applied Psychology, Vol. 87 No. 2, pp. 268-279.

• Macey, W. H., & Schneider, B. (2008), “The meaning of employee engagement”, Industrial and Organizational Psychology, Vol. 1, pp. 3-33.

• Mobley, W.H., Griffeth, R.W., Hand, H.H. and Meglino, B.M. (1979) “Review and conceptual analysis of the employee turnover process”, Psychological Bulletin , Vol. 86, pp. 493-552.

• Palmer, B. R. & Gignac, G. E (2012), "The impact of emotionally intelligent leadership on talent retention, discretionary effort and employment brand", Industrial and Commercial Training, Vol. 44 Iss: 1, pp.9 – 18.

• Ravichandran et.al (2011) “The Impact of Emotional Intelligence on Employee Work Engagement Behavior: An Empirical Study” International Journal of Business and Management. Vol. 6, No. 11; November 2011.

• Rosete, D. and Ciarrochi, J. (2005) “EI and its relationship to workplace performance of leadership effectiveness”. Leadership & Organization Development Journal, 26, 388-399.

• Romzek, S. Barbara (1989) Personal Consequences of Employee Commitment, The Academy of Management Journal, Vol.32, No.3, pp. 649-661.

• Salovey, P., & Mayer, J. (1990). Emotional intelligence.Imagination, Cognition and Personality, Vol. 9.

• Schaufeli, W.B. and Bakker, A.B. (2004), “Job demands, job resources, and their relationship with burnout and engagement: a multi-sample study”, Journal of Organizational Behavior, Vol. 25, pp. 293-315.

• Woodruffe, C. (2005), “Employee engagement”, British Journal of Administrative Management, Vol. 50, pp. 28-9.

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India a fastest emerging economy is heavily dependent on energy for industrial development and growth which will lead to achieve the human development goals. The country’s energy supply and demand has been a challenge for all including the Government as it needs to create the opportunities for increased power generation and dissemination or alternative arrangements. Various initiatives by the Government, organizations and industries regarding energy consumption and efficiency have been taken. This case study is about one such initiative by the Faridabad Small Industries Association. Faridabad Small Industries Association (FSIA) has initiated the Word Bank Funded project for the Faridabad industries. SIDBI executed the project through FSIA and its SPV IamSME of India.

Keywords: Energy Efficiency, Growth, Faridabad Small Industries Association

Case Study: An effort ofFaridabad Entrepreneurs for Energy Efficiency

Abstract

Introduction

India is one of the fastest growing economies in the

world with a growth rate ranging between 5-9% in the

last decade. The country is further targeting for double

digit growth rate in the next decade. As the country

witnessed slow growth rate from 2008-09 it needs to

sustain at least an 8-10% of economic growth rate over

the next twenty years to eradicate poverty and meet the

human development goals.

Energy is the vital factor of economic growth. Future

economic growth rate depends upon the long-term

availability of quality energy from the affordable,

accessible and secure sources. To deliver sustained

growth rate and to meet the requirement of energy of all

the citizens, the country needs to increase its primary

energy supply, by electricity generation, and capacity

and supply manifolds. According to the reports of World

Resources Institute India’s energy demand will be

approximately double than today in 2030.

India’s requirement for energy is growing at a

extraordinary rate. The annual electricity generation

and consumption in India has increased by

approximately 64% in the last decade. As per the Global

Environment Facility (GEF), the industry is the largest

consumer of energy in the Indian economy; accounting

for over 50% of total primary energy consumption in the

country. India’s commercial energy supply would need

to grow from 5.2% to 6.1% per annum while its total

primary energy supply would need to grow at 4.3% to

5.1% annually.

As per the report ICLEI South Asia 2007, power

generation capacity must be nearly 8,00,000 MW from

Bindu Agrawal*

*Associate Professor, Manav Rachna University, Faridabad, Haryana

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the current capacity of around 1,60,000 MW inclusive of

all captive plants by 2031-32. As per the report of Trends

in Global energy efficiency 2011, the efficiency of the

power sector is decreasing and in 2009 it stood at 30%

compared with 36% in 1990. Thus it requires the setting

up of more power plants and energy generation. The

resources are limited thus the energy saved at any point

will contribute to energy generation and it leads to the

requirement of energy consumption and energy

efficiency.

Energy Efficiency

Energy efficiency is the use of technology that requires

less energy to perform the same function. It is often

viewed as a resource option like coal, oil or natural gas. It

provides additional economic value by preserving the

resource base and reducing pollution. The concern

towards energy efficiency emerged due to increased

carbon emission, poor availability of resources, supply

scenario and rising energy prices.

The Government, different companies and industry

associations, are aware that increasing energy efficiency

would lead to cutting the costs and help in achieving

sustainable economic growth, and they establish goals to

improve energy productivity.

The importance of energy efficiency in the development

of the country was recognized during 1972 in India and in

mid 1990’s a drive for promoting energy efficiency

through technical assistance and training activities aimed

at exposing Indian organizations to management and

technological advancement in the West took place. The

Government of India initiated different energy efficiency

related programs, with the help of various laws and

regulations. All these regulations have been gradually

introduced and implemented effectively in the last two

decades.

With reference to the energy efficiency the Indian

Government created Petroleum Conservation Research

Association (PCRA) in 1978. To promote and accelerate

the energy efficiency drive the Government further

introduced the Energy conservation act 2001 with target

objective of 5% reduction in energy consumption by

2015. This law came into force in March 2002. It was

required to implement specific actions and introduction

of consumption labels and performance standards for

electrical appliances on large energy consumers and for

this Bureau of energy efficiency was created to

implement the mentioned provisions.

The mission of Bureau of Energy Efficiency is to develop

programs and strategies on self-regulation and market

principles to reduce the intensity of energy in the Indian

economy. Few other activities of BEE are the

development of energy performance labels for

refrigerators, motors, air conditioners, and other mass

produced equipment, certification of energy managers

and auditors, assisting industry in the benchmarking of

their energy use, and energy audits of prominent

government buildings. BEE is also working closely with

different agencies at the state/ central level in order to

provide energy efficiency services through public-private

partnership.

Different Industry associations in India are playing an

important role in energy efficiency. The Federation of

Indian Chambers of Commerce and Industry (FICCI) and

Confederation of Indian Industry (CII) are involved in

capacity building through the organization of training

programs, workshops, conferences, exhibitions, poster

displays, awards, and field visits.

Efficiency can be increased in energy extraction,

conversion, transportation, as well as in consumption. It

includes the same level of service provided by alternate

means that require less energy. The major areas where

energy efficiency can make a substantial impact are

mining, electricity generation, electricity transmission,

distribution, pumping water, industrial production and

processes, transport equipment, mass transport, building

design, construction, heating ventilation and air

conditioning, lighting and household appliances.

There is a huge potential of Energy saving in all sector in

India. The target for energy savings in the 10th Plan is

95,000 Million Units which is about 13% of the estimated

demand of 7,19,000 Million Units in the terminal year of

the 11th Plan.

About the Study

The article is about energy efficiency drive at Faridabad,

industrial hub of auto component manufactures in

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Haryana. The objective of this case study is to explore the

energy efficiency drive in Faridabad and compile the

literature. The drive included the efforts by Faridabad

Small Industries Association (FSIA ), SIDBI and IamSME of

India named industry association. In this World Bank

funded project a sample of 200 organizations was

covered. For the purpose of study the authors

interviewed the representatives from IamSME of India a

chapter of FSIA and then compiled the same.

Initiative

Faridabad Small Industries Association has initiated the

Word Bank Funded project for the Faridabad industries.

SIDBI executed the project through FSIA and its SPV

IamSME of India.

1. The survey of 400 industries was done for

energy efficiency.

2. These industries were selected on the basis of

high consumption of electricity

3. Five sectors were chosen

i. Light Engineering

ii. Dye Casting

iii. Casting and fordging

iv. Plastic and sheet metal

v. Miscellaneous

4. Out of those 400 industries only 200 were

selected for the detailed survey on the basis of

energy efficiency potential.

5. The implementation of energy efficiency

measures was done in those 250 units.

6. Energy audit was conducted first and on the

basis of audits, required energy efficiency

equipment was installed in those units.

7. After installation of energy efficiency

equipment at unit these firms could able to

save on an average 10%- 20% on their energy

bills.

8. For installation of this equipment financing was

facilitated by the FSIA through banks and MSME

financing schemes.

9. The payback period of investment was

calculated from 1.5 years to 2 years as per the

efficiency management equipment cost.

10. Within a year FSIA could able to get result from

these efforts and inspired other industries for

adopting the same.

Role of FSIA:

• The funds were provided by the World Bank and

execution was the responsibility of SDBI. But

spreading awareness among industries for energy

efficiency was the main role of FSIA.

• It was done through various workshops conducted

by FSIA in Faridabad

• A Cluster Coordination committee was made to

monitor the progress of this project at various stages

• Various organizations were involved in this project

like PWC (Price Waters & Coppers) , DESL, FICCI, BEE

etc.

• Finally a project report has been prepared and

submitted to the World Bank with the

recommendation and workable models, tested in

Faridabad .

• Other Industrial Association can adopt this model of

working and energy efficiency at local level

Conclusion

There are various agencies which are working to provide

companies and governments with the best energy

efficiency practices to reduce energy costs and prepare

for a low-carbon future. Their experts offer an integrated

service package comprising technology, policy, and

financing components. These agencies seek fund from

the Government or international agencies and conduct

the projects in the interest of the society at large, thus the

authors suggest here the same kinds of initiatives by the

other industries association to increase the pace and

accessibility of such programs and contribute in saving

energy as it will lead to increased energy with us.

References

• “Corporate Environmental Reporting on the Internet

– An Insight into Indian Practices”

• Integrated Energy Policy: Report of the Expert

Committee, Government of India, Planning

Commission, New Delhi, August 2006

• Malarvizhi, P., Yadav, S., Corporate environmental

reporting on the internet: An insight into Indian

practices, presented for the track “Environmental

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Strategy” in the 11th Annual Convention of the

Strategic Management Forum, May 8 – 10, 2008 at

Indian Institute of Technology, Kanpur, India.

• Phadke A., Sathaye J. and Padmanabhan S. (2005)

Economic benefits of Reducing Maharashtra’s

electricity shortage through end-use efficiency

improvement. LBNL Report 57053

• Renewable Energy and Energy Efficiency Status in

India, A report compiled by ICLEI South Asia, 2007

• Sathaye J., J. Roy, R. Khaddaria and S. Das, (2005)

Reducing Electricity Deficit through Energy Efficiency

in India: An Evaluation of Macroeconomic Benefits

Accepted for presentation at the Fifteenth

International Input-Output Conference held from

June 27 to July 1, 2005 at Renmin University, Beijing,

China.

• Trends in Global Energy Efficiency, Country Report,

India, 2011

Websites:

• http://smallb.in/%20/environment%20/energy-

efficiency-cost-savings%20/energy-efficiency-

government-india

• http://mercindia.org.in/Orders_2005.htm

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Guidelines for Submission of Manuscript

1. The whole manuscript is required to be in one MS-WORD file only which will start from the covering letter.

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Prastuti - Journal of Management & Research(ISSN: 2320-2262)

Published byInstitute of Business Management, GLA University, Mathura

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NOTE

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NOTE

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