GGGI Management Review

rdThere is good news that India is declared 3 largest economy in the world on Purchasing

Power Parity basis by World Bank. In this era of political uncertainty, India achieved this

ranking by displacing Japan; consolidate our confidence that we will dominate other

economies very soon. Multinational companies in India are finding hard to make the

consumer spend and focusing on economy packs They need innovations based on research

products and services to face the competition from other domestic and foreign companies,

stores and online formats.

Indian agriculture front is still a major concern as it is lagging behind with other

international players. Bans of certain food products is denting the image of Indian farmers.

There is urgent need of research in agriculture, finance & marketing to keep Indian flag

high. Our journal is also aiming the same, as we got tremendous response from budding

researchers. The research papers in this journal touches various areas such as MNREGA,

Pulse-Polio, Interest risk exposures, Economy of War(1857), E-Governance etc. As we are

passing through the phases of general election in our country and a new government will be

there in centre when you get the copy of this journal.

I once again invite young and experienced researchers to send their original work as we are

converting our journal from national to International refereed journal from this issue,

which will add more value to your valuable research. I hope this issue will come up to your

expectations.

Prof. (Dr.) Madhur Raj JainManaging Editor

FROM THE DESK OF EDITOR

Contents

Traits of Consumer Satisfaction Structural Equation Modeling Approach to Study Product Orientation w.r.t. Soft Beverages .................................................................... 140-143Prof. P. K. Yadav, Prof. Ashish Kumar Srivastava & Ms. Divya Khanna

.............................................................. 144-150

151-158

Companies Bill, 2011 as a Wakeup response for Corporate Misgovernance and Scandals in Indian Corporate Sector............................................................................................. 159-167Dr. Vijay Vrat Arya, Dr.Amit Kumar Singh & Dr.Manju Gupta

The Great Uprising if 1857 And Economy of Haryana................................................................... 168-172Dr. Atul Yadav

................................................................................................. 173-179

........................................................................................................... 180-190(This paper is declared as best paper in the International Seminar held in April 2013 at Galaxy Global Group of Institutions)

............................................................................................... 191-196

...................................... 197-200

.............................................................................................................. 201-209

..................................................................................................................... 210-224

Role of E-disha Kendra in Improving the Image of Governance Towards Public Services- A Study of Kurukshetra DistrictDr. Madhur Raj Jain, Parmod Kumar Singhal

Measurement and Management of Transaction Exposure in Indian Companies.............................Ms. Reeta

Teaching Effectiveness of Teachers Working in Different Types of Schools with Respect to Organisational ClimateDr. Madhu Gupta, Rishi Goel

Organizational Strategies for Designing Effective Viral Marketing Campaigns for Competitive Advantage

Tripti Bajpai Toor, Sonia Goswami

Relationship between Marketing Practices and Business Performance: A Study of Selected Hotels in Delhi S.S Boora, Ms.Tanvi

Customer Satisfaction level towards Indian Commercial Banking SectorVikas Anand, Parmod Kumar Singhal

Impact of MGNREGA on Women Empowerment-A Case Study of Cuttack District in OdishaMinati Sahoo

Data Recovery: An Empirical Investigation of Key Executives in Small and Medium Enterprises. Dr. Jasmin Padiya

Contents

Pulse Polio Programme: The most effective marketing by the Government of India. H.Bansal, Ashu Jain

Customers' Perspective on Customer Retention in Public and Private Sector Banks Varsha Jain

Merger and Acquisitions Short cut Strategies for Growth Dr S K Singh, Dr. Sunil Kumar Yadav

Do Moderator Factors Effect The Relationship Between Job Satisfaction & Organizational Commitment of Employees? : A Meta AnalysisSubhash Chander, Suchi , Prof. S. C. Davar

Book Review 269

Book Review 270

Book Review 271

..................... 225-232

...................... 233-243

............................................................. 244-251

.................................................... 252-268

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Declaration and Transfer of Copyright......................................................................................... 272

Subscription Form ....................................................................................................................... 273

*Head & Dean, Faculty of Management, MJP Rohilkhand University, Bareilly.**Director, Institute of Management, Pt. Ravi Shankar Shukla University, Raipur.***Guest Faculty & Research Scholar Dept. of Busi. Administration, MJP Rohilkh and University, Bareilly.

Vol 3, Issue II, July-Dec. 2013 ISSN 2249-4103 GGGI Management Review A Bi-annual Refereed International Research Journal

Prof. P. K. Yadav*Prof. Ashish kumar Srivastava**

Ms. Divya Khanna***

ABSTRACT

Needless to say that globalization has brought markets of different regions quite close. It has led to both opportunities as well as threats. Opportunities for those who are new entrants in the market & threats to those who are already existing. It is but obvious that marketers & the producers are interested to learn more and more about consumer likings and disliking.

Here this paper discuses the important traits of consumer satisfaction towards the soft beverages which are non alcoholic in nature. This study has been carried out through multi-variant analysis with the application of structural equation modeling. The expected contribution of this study is to develop a competitive edge and generate strategies for benefits in the relevant industries.

Keywords: Satisfaction, Quality, Brand, Variety, Warranty, Packaging and Size.

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Traits of Consumer Satisfaction Structural Equation Modeling Approach to Study Product Orientation w.r.t. Soft Beverages

Introduction blending, packing, and branding. Instant tea production is limited. Major players are Tata Tea, HUL, Manjushree Indian beverage market is highly competitive. The Plantations, Jay Shree, Goodricke, Harrison Malayalam, beverage market consists of alcoholic as well as non-Eveready, and Warren. With an annual production of alcoholic drinks. Non-alcoholic drinks broadly include around 300,000 tons, India is a small but competitive cold drinks, tea, coffee, bottled fruit juice, bottled producer of coffee. Traditionally a tea-drinking country, drinking water etc. The Indian food market is average annual coffee consumption in India is only ten approximately ̀ 2,50,000 crore ($69.4 billion), of which cups per person. The instant coffee segment is entirely

value-added food products comprise ` 80,000 crore branded and packaged, and caters mostly to the export

($22.2 billion) (Food and Beverage).market. Major players are Tata Coffee, HUL, Nestle,

The soft drinks industry continued on its path to recovery Barista, Qwiky's, Narasu, Leo, and ABCTC (Food from the low growth seen between 2005 and 2006, with Industry in India).higher volume growth in 2008 than that seen in 2007.

The beverage market is rapidly growing. The market The mature sectors of bottled water, fruit/ vegetable juice

players are continuously involved in developing and carbonates saw a dynamic year, with companies

strategies to acquire the competitive advantage. It is refreshing their products' brand image and packaging to

suggestive that if the policy makers of the beverage attract new consumers. Emerging product categories,

companies are equipped with market information and such as energy drinks and reconstituted 100% juice, saw

proper plan, there is a positive sign to bloom. A study has high double-digit growth rates, as companies increased

been organised to find out the significant predictors of their products' penetration in India. Off-trade volume

consumers' satisfaction through multivariate analysis.growth was slightly higher than on-trade volume growth,

Literature Reviewas convenient on-the-go packaging, company sponsored chillers in kiranas and attractive supermarket displays Clawson (1971) explains that from the measurement of fuelled off-trade sales across the market. Pepsi and Coca speed, direction and size of shifts in buying likelihoods Cola dominate the Indian soft drink industry (Soft for a product over several periods in various market Drinks in India). segments, the marketer may discover what trends are

taking place as well as the timing and size of their India is the world's largest tea-producing country with an potential impact on sales.annual production of around 8,60,000 tons and is also

one of the world's largest tea exporters. Tea processing The product concept assumes that consumers buy the includes withering, rolling, fermenting, drying,


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product that offers them the highest quality, the best The above literature paves a way for conducting a performance, and the most features. A product research on beverages. The study has been conducted orientation leads the company to strive constantly to through multivariate analysis where quality, brand, improve the quality of its product and to add new variety, packaging and size are taken to be the features that are technically feasible (Schiffman and explanatory variables of customer satisfaction.Kanuk, 2007, pp 5). Hawkins et. al (2007, 22) finds Research Questionproduct position as the most basic outcome for a firm of

Do the variables namely quality, brand, variety, marketing strategy which is an image of the product or packaging and size have a significant impact on brand in the consumer's mind relative to competing customer satisfaction while buying non-alcoholic products and brands. This image consists of a set of beverages?beliefs, pictorial representations, and feelings about the

product or brand. Conceptual Framework of the Study

Perceived quality of a product influences the consumer In the light of the above review, a study of consumer behaviour to a considerable extent. Consumers often satisfaction has been conducted in which the factors of judge the quality of a product on the basis of a variety of product viz. quality, brand, variety and packaging and informational cues that they associate with the product. size are taken as the predictors of customer satisfaction. Consumers believe that they base their evaluations of Every variable has more than one component and product quality because that enables them to justify their opinion of 100 individuals.product decisions as being rational or objective product choices (Schiffman and Kanuk, 2007, pp 178). If the consumers meet a higher quality than their perceived one, they have a positive intention to purchase the product. In case of beverages, quality can be measured in terms of taste, hygiene etc.

Product variety, also known as assortment breadth, is also a factor of satisfactin. Normally customers satisfy with a greater assortment because more choices increase the chance of finding what they need (Kotler, 2003, 511). The availability of greater variety of product causes a higher satisfaction. Structural Equation Models

Packaging includes the activities of designing and SEM methodology spread fast as a consequence of the producing the container for a product (Wikiversity). development of specific packages, like LISREL Product mix denotes product development, packaging, (Joreskog and Sorbom 1988, 1989, 1995) and AMOS branding, and research (Product Mix). Wickford (2009) (Arbuckle and Wothke 1995). The availability of these finds that a leader in qualitative and quantitative research packages has encouraged several applications in for the consumer packaged-goods industry, over 50 different contexts. This approach allows the modelling percent of shoppers' satisfaction is made at the shelf. of a phenomenon by considering both the unobserved Since packaging of a product is the first thing that a “latent” constructs and the observed indicators that consumer sees, it plays a vital role in differentiating a describe the phenomenon. SEMs are made up of two brand from the competition. components: the first describes the relationship between

endogenous and exogenous latent variables, and permits The desired product size is also a significant factor of the evaluation of both direction and strength of the causal satisfaction. Wyner et al (1984) find that the availability effects among these variables (latent variable model); of product in different quantities has a direct relationship the second component describes the relationship with product demand. Larger is the number of different between latent and observed variables (measurement sizes, higher is the customer satisfaction.model).

Methodology and Data Analysis Estimates

Estimates of the following model parameters:The model is recursive. In everyday usage, a recursive • Regression weights model is one in which no variable in the model has an • Variances of exogenous variables effect on itself. That is, in the path diagram of the model,

it is not possible to start at any variable and, by following • Covariances among exogenous variables a path of single-headed arrows, return to the same • Means of exogenous variables variable. • Intercepts for predicting endogenous variables


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Regression Weights

Covariance


143

determinants namely brand, variety and size were found to have significant impact on satisfaction.

The marketing policy makers of non-alcoholic drinks are advised to consider the above significant determinants while developing marketing strategies. This way their companies are not only supposed to enjoy the present competitive advantage, but will be able to keep on mastering the future.

Reference

Arbuckle, J. L., and W. Wothke. 1995. AMOS 4.0 user's guide. Chicago: Small Waters Corporation.

Clawson C. Joseph, 'How Useful are 90-Day Purchase Probabilities?', Journal of Marketing, 35, 43-47, October 1971.

Except for a constant scale factor, ECVI is the same as Food and Beverage News, 'http://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=AAIC:bout%20Us#Food&beverage'

Food Industry in India, 'http://www.ud.camcom.it/internazionaliz/int_iniz/allegati%20india/foodreport.pdf'

Hawkins Del I, Best Roger J., Coney Kenneth A and Mookerji Amit, The columns labelled LO 90 and HI 90 give the lower 'Consumer Behavior', Tata McGraw – Hill Publishing Company

Limited, New Delhi, Ed. 2007, ISBN – 0-07-060086-4.limit and upper limit of a 90% confidence interval for the Joreskog, K. G., and D. Sorbom. 1988. PRELIS: A program for population ECVI:multivariate data screening and data summarization. A preprocessor for LISREL. Chicago: SSI, Inc.

Joreskog, K. G., and D. Sorbom. 1989. LISREL 7: A guide to the program and applications. Chicago: SPSS, Inc.

Joreskog, K. G., and D. Sorbom. 1995. LISREL 8: Scientific Software International. Chicago: Inc.

Kotler Philip, 'Marketing Management', Eleventh Edition, 2003, ECVIPrentice-Hall of India, New Delhi, ISBN-81-203-2083-2.

Loudon L David and Bitta J. Della, 'Consumer Behaviour', Tata McGraw–Hill Publishing Company Limited, New Delhi, Ed. 2007, ISBN – 0-07-047381-1.

Schiffman, Leon G. and Kanuk, Leslie Lazar, 'Consumer Behavior', Prentice Hall of India, New Delhi, Ed. 2007, ISBN – 978-81-203-3086-3.

Soft drinks in India,'http://www.euromonitor.com/Soft_Drinks_in_India'InterpretationWickford Hannah 'The Impact of Packaging on a Consumer',

Regression finds that brand variety and size are http://www.ehow.com/about_5501446_impact-packaging-consumer.html last accessed on 15th October 2009.significant.Wikiversity, 'Packaging and Labeling', Conclusionhttp://en.wikiversity.org/wiki/Principles_of_marketing#Managing_

stthe_Product_Mix, last accessed on 1 December 2009.The determinants of customer satisfaction of non-alcoholic beverages have been studied for product Wyner, G. A., Benedetti L. H. and Trapp B. M. 'Measuring the

Quantity and Mix of Product Demand', The Journal of Marketing, orientation. Five determinants had been identified from Vol. 48, No. 1 (Winter, 1984), pp. 101-109.exploratory study namely Quality, Brand, Variety,

Packaging and Product Size out of which three

Professor & HOD, Faculty of Management, Galaxy Global Group of Institutions, Dinarpur, Ambala.Assistant Professor, Faculty of Management, Galaxy Global Group of Institutions, Dinarpur, Ambala.,


Dr. Madhur Raj Jain*Parmod Kumar Singhal**

ABSTRACT:

In a democratic polity, citizens expect speedy and transparent delivery of public services. For this, E- Governance becomes an excellent tool for government to respond to the escalating demand of educated citizens. The Information revolution has completely changed the world and latest software's are meeting the demand of educated youth who are looking for age of information to fulfill their common purpose requirements.

This paper discusses and presents the survey findings that seek to test the role of e-governance in improving service delivery by accessing the perception of respondents towards E-disha Kendra services in Kurukshetra district of Haryana. It further seeks to elucidate the quality aspects of public service provided by the E-Disha Kendra's in the city. A survey of 150 respondents were taken.

Key Words: E-governance, E-Disha, Public Services, Perception, Educated Youth

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Role of E-disha Kendra in Improving the Image of Governance Towards Public Services- A Study of Kurukshetra District

Introduction: identified various key components including common core and support infrastructure and several mission E-governance is the application of information & mode projects to be implemented at the central, state communication technologies to transform the efficiency, and local government levels. effectiveness, transparency and accountability of

informational & transactional exchanges with in E-governance in Indian states government, between govt. & govt. agencies of Various states governments have also taken various National, State, Municipal & Local levels, citizen & innovative steps to promote e-governance and drawn up businesses, and to empower citizens through access & a roadmap for IT implementation. Various projects are use of information. being implemented for improving the service delivery to E-Governance has been acknowledged as a tool for the citizens through e-governance. promoting efficiency and effectiveness in government Most important step is the establishment of service and it can play a huge role in public service delivery. centers. These Service Centers are established in public-Many developing countries are now realizing the need private partnership mode and centers are providing for e-Governance in order to provide customer-focused, multiple online services, such as, payments of taxes, land cost effective, and easy to use services for citizens and record, driving license, registration of birth, deaths and businesses and to improve the internal workings of marriages, payments of water, telephone and electricity government. For this, the government of India started bills, issue passport, bus passes and old age cards etc. “e-delivery of public services development policy Through online services citizens have benefited from loan”, under the national e-governance plan (NeGP), a reduce delay, multiple solution at one counter. As a flagship e-governance initiative of the government of result, transparency, accountability and efficiency in India aimed at transforming the service delivery system administration have been increased. E-governance across the country. The vision of the agreement is to initiatives select states have been mentioned as under:make all government services accessible to the

E - SEWA common man in his locality, through common service delivery outlets and ensure efficiency, transparency and The Andhra Pradesh government has launched a twin reliability of such services at affordable costs to realize project for the two cities Hyderabad and Secandrabad, in the basic needs of the common man, NeGP has Andhra Pradesh. Later on in august of 2001 the project


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was re-launched as an improved version and christened E-suvidha as e-Sewa, The aim here is to provide a one stop, under a The department of information technology and single-roof contact point for availing a wide spectrum of electronics, government of Uttar Pradesh has decided to services from a number of different departments. create and develop an electronic bridge between the City Civic Centre (e- city) common citizen and the government departments and

constituted the state smart city project unit (e-suvidha), This project was started at Ahmadabad Municipal E-suvidha is providing 26 public utility services across Corporation (AMC) to facilitate better performance of the state of Uttar Pradesh .the delivery of municipal services. For this AMC has

establish six city civic centres which are located in five Lokmitra zones of city and also created forty-three ward civic The Government of Himachal Pradesh is committed to offices all these interconnected via internet connectivity. provide the benefits of Information Technology to Bhoomi general public especially living in distant rural areas of The government of Karnataka, embarked upon a project the State. The Common Service Centre (CSC) named “Bhoomi” in 2002 designed by national informatics “LOKMITRA” scheme is one such step of the State canter, Bangalore, under which the entire land records in Government in that direction. LOKMITRA, a G2C Karnataka were to be computerised and made open to project, provides an interface for the citizens to interact public. In all 20 million records of land ownership of 6.7 with various government functionaries and solicits the million farmers were digitalized through 177 active and direct contribution of citizens in the process of government-owned kiosks in the state. The Bhoomi governance. project changed the entire system by converting the data SETU into digital format.

Harnessing the benefits of Information Technology for Friends effective and transparent functioning of the FRIENDS or “Fast, Reliable, Instant and Efficient administration is one of the core focus areas of the IT network for disbursement of services” was started in policy of the Government of Maharashtra. To ensure 2000 in Thiruvananthpuram by the kerala state time bound service delivery to citizens, the government department of information technology with the help of has initiated the program to set up citizen facilitation local bodies. The friends centre, or Janasevana kendram, center known as Integrated Citizen Facilitation Centre is a one-stop integrated citizen service centre of the (SETU). It acts as a credible link between the citizens government of kerala. The centre functions as a single and the government. The SETU is work on these very counter to remit utility bill payments, submit basic needs of the citizens and reorienting administrative applications, seek information on government processes accordingly. The aim is to lay the foundation programmes and schemes, and provide access to other for e-governance, create visible impact of the intention specialty services. of the Government in this direction, and facilitate the

interaction of the citizens with the Government to make Gyandoot it more transparent, pleasant and satisfying.

Gyandoot initiated in January 2000 by a committed E-Disha Centres in Haryanagroup of civil servants in consultation with various gram

panchayats in the Dhar district of Madhya Pradesh. The government of Haryana has given a special Gyandoot is a low cost, self-sustainable, and emphasis on implementing Information Technology (IT) community-owned rural intranet system (Soochnalaya) policy with an aim that is all citizens should access that caters to the specific needs of village communities in government and private sector services from their own the district. Gyandoot aims to create a cost-effective, villages and towns. The Master Service Agreement replicable, economically self-reliant and financially (MSA) for the implementation of the common services viable model for taking the benefits of Information and centers (CSC) “E-DISHA” scheme in Haryana was Communication Technology (ICT) to the rural masses. signed on April 17th 2007, between Financial

Commissioner (Information Technology) on the behalf


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of Government of Haryana and the Managing Director process. This study has also discussed the e-Governance of Hartron. project „Bawaba? launched in Egypt. Khare (2008)

To achieve this objective, The Government of Haryana outlined the significance of e-Governance for the society has implemented the common services centres scheme in India. Author also defined, doctors in villages may in the state. As per the IT policy of State, there has been consult with the senior doctors online in case of medical established 1159 rural “E-DISHA” CSC throughout the emergencies. Rajon and Zaman (2008) investigated state as single window services delivery point for the prospects and problems of implementing e-government, business and citizen services. Another 55 Governance in Bangladesh. According to the authors, CSCs, in urban areas and 49 show case CSCs at District implementation of e-Governance is the only way to build Headquarter. At present, the following services have a corruption-free Bangladesh. E-Governance ensures been integrated and offered from “E-DISHA EKAL good governance, strengthens democratic process SEVA KENDERA” centres for the people: Forms and providing equal rights to access to information, service Procedures; Birth and Death Certificate of Urban Areas; efficiency and rapid economic growth. Shingare et al. House Tax Collection, Social Welfare Schemes (2008) explored the role of e-Governance in the Application acceptance; Issue of Caste and Residence development of rural India. According to him, Gram Certificate; Passport Application collection; Arms Panchayat is a unit of Government system that governs Licence; Driving License; Vehicle Registration at village level administration in India. Most of the Certificate services. population resides in the rural area. Therefore, the

development of Gram Panchayats will mean growth of Aneja (2005) He found in his paper that the government the country. Singh (2009) studied different e-is required to cut the service cost, improve Governance projects that have been implemented in the administrative efficiency and citizen relationship, bring state of Punjab to show the significance of e-the transparency and encourage citizens to participate in Governance. The author highlighted the benefits of the Governance. Singla (2005) he explain in his study SUWIDHA centre to citizens such as issuance of Death that e-Governance is used to promote E-commerce Certificates, Affidavits, Permissions, No Objection through internet to provide transparent systems to the Certificates, etc. Verma and Mishra (2009), in their citizens and interact directly with Government agencies research paper, explained the significance of e-for overall development of the economy. It is also used to Governance for the society. The authors believed that e-bridge the gap between rural and urban masses. Besliu Governance has the potential to provide speedy and (2006) also defined the advantages of e-Governance in convenient access to Government services. Also, it can his paper. It encourages more participation of citizens in play a significant role in improving interaction between decision-making process. Ghosh and Banerjee (2006) citizens and the administration. They have also focused defined that 70% of Indians live in villages and majority on single window services which mean availability of of them are farmers. Now, they can easily know about public service authorities and services at a single point. current crop price, get help to prevent crop from diseases Singh (2010) advocated promoting e-Governance in and are able to sell directly using internet services, India through Right to Information. According to the eliminating the role of middlemen besides reducing author, e-Governance refers to the usage of internet and transaction costs. mobile computing by the Government agencies for

Saadoun and Yanning (2007), in their research study, better delivery to citizens. It also improved the explained the role of e-Governance in delivery and interaction between citizens and the Government. The maintaining standards. They brought out that the aim of thrust of e-Governance is on eliminating the middlemen, e-Governance is to improve the information supply, reducing corruption. Garg et al. (2011) discussed the quality of Government services delivery to citizens and significance of e-Governance in Technical Institutions businesses by making the Government more responsive, of India. In their paper, e-Governance has been used to transparent and effective. Darwish (2008) emphasized facilitate administrative efficiency, provide speedy and upon the significance of e-Governance as it allows transparent information to the public in every aspect of interactive participation of citizens in decision-making


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technical education. Ghosh (2011) studied the services provided by E-Disha Kendra. significant role of Information and Communication ➣To know the impact of demographic factors on Technology (ICT) in rural development. The author has the satisfaction level of the respondentsstressed upon the advantage of “Gyandoot”, an e-

➣To know the respondents view on the costs of Governance project implemented in Dhar district of service delivery by reducing duplication of Madhya Pradesh. Singh and Chander (2012), in their efforts by individuals and departments of E-research paper, suggested the role of e-Governance in dish Kendra.economic development especially in the State of Punjab.

According to the authors, Punjab state is an agriculture- Scope of the study:based state with most of the population dependent upon

The scope of this study is to understand the all services of the sector.

E-Disha Kendra/services. The study has taken place at Methodology: Kurukshetra (Haryana).

This study has been under taken to analyze the customer Data collection: Two types of data have been used in response towards al l services of E-Disha the study: Primary Data, Secondary data Kendra/services with a special reference to the

Sample size: Goverment offices, the other objectives are:

150 people from different professional backgrounds.Objectives:

Statistical tools used: Ranking method has also been ➢To know the respondents view on E-Disha

used in the analyzing the data. Chi-square test and Kendra.

ANOVA was used for analysis.➢To know the perception of respondents on the

Analysis: Table-1, Demographic Profile

P


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Most of the respondents were from the 25-40 years of Kendra services as it is free from any hindrance.age than after this almost 35 percent of the respondents Most of the respondents were graduate who visit the E-were from the age group 40- 60 years. This reflects most disha Kendra. Almost 16 percent of the respondents of the respondents who are visiting the E-disha Kendra were professionally qualified.were from the young age and they want to experiment

To know the impact of the demographic factor on the with the new technology systems offered by the satisfaction level and usability of the E-disha Kendra government. services, ANOVA test was applied and following result

Most of the respondents were from below 40000 rs. was obtained:Range (almost 49 percent). Which shows that below average income group people would like to avail E-disha

Table-2 Impact of demographic factors on satisfaction level towards E-disha kendra

In order to find out the impact of the demographic factor calculated value of the f test is greater than the tabulated on the satisfaction level and usability of the E-disha value. All the demographic factors i.e. Age group, Kendra services, following null hypothesis was Income group and educational qualification have considered i.e. 'Demographic factors have no significant impact on the satisfaction level and usability significant impact on the satisfaction level and usability of the E-disha Kendra services.of the E-disha Kendra services'. After adopting ANOVA, In response to the query that from where you got the it can be interpreted that null hypothesis was rejected at 5 information about E-Disha Kendra/services following percent and 1 percent level of significance as the information was obtained:


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Table-3:Source of Information

Maximum respondents got the information about the E- replied in the positive manner and seems to be satisfied disha Kendra from the different media. When asked in with the services provided at the Kurukshetra centre detail they said that they got information from news where survey taken. paper as well as from local TV channels. In response presences of E-disha Kendra seva will When asked about the reliability and efficiency of the E- remove touts/agents from citizen service of govt.offices, disha Kendra most of the respondents ( 85 percent) Chi-square test is adopted

Null hypothesis was rejected i.e. 'response of the grievances or not, almost 85 percent of the respondents is equally distributed among all options'. respondents were agree that they getting quick

redressal of their grievances.Almost 65 percent of the respondents were strongly agree that E-disha Kendra provided timely delivery of In response to the query that 'Use of E-disha creates services. In response to the query that whether E- knowledge based jobs amongst educated youths' dishakendra provided quick redressal of the following response was obtained:

Table-4 :Test Statistics

Table-5


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68 percent of the people responded positively that use of E- structured e-governance system is required at the top level dish provided knowledge base jobs amongst the educated system to beat the inertia. youths

References:84 percent of the respondents were agreeing that E-disha

Bhatnagar, S. (2003). Administrative Corruption: How Does E-Kendra provides transparent services to the public. Similarly

Government Help? In Proceedings of Global Corruption Report 82 percent of the respondents agree that these Kendra does not 2003, Transparency International. Retrieved June 30, 2007 from affect cost to the users. http://www.gipi.az/ssi_eng /egov/20030324.pdf.

Conclusion: BIH. (n.d.). Business in Haryana. Retrieved June 23, 2006 from http://www.haryana-online.com /business.htm.

There is still needs to develop more on the E-services and its Carman, J. H. (1990). Consumer perceptions of service quality: an efficiency so that it is easily accessible to all citizens and it assessment of the SERVQUAL dimensions. Journal of Retailing, becomes the most efficient and effective service to gain 66(1), 3355.satisfaction amongst citizens.Rafia NAZ , E-Governance for Improved Public Service Delivery in

It is evident from above discussion that objectives of Fiji, J. Service Science & Management, 2009, 3: 190-203 achieving e-governance and transforming India go far beyond doi:10.4236/jssm.2009.23023 Published Online September 2009 mere computerization of standalone back office operations. It (www.SciRP.org/journal/jssm). means, to fundamentally change as to how the government

Anil Monga, Akshat Mehta and Kuldeep Singh (2007), “E-operates, and this implies a new set of responsibilities for the

Governance and Quality of Service: The Indian Experience”, executive and politicians. It will require basic change in work Management in Government, October-December, pp. 37-52. culture and goal orientation, and simultaneous change in the

Prabhu, C.S.R. (2004) “E-governance Concepts and Case Studies”, existing processes. Foremost of them is to create a culture of Prentice Hall of India, New Delhi, pp.116-126. maintaining, processing and retrieving the information Sangita, S.N and Bikash Chander Dash, (2008), “The Indian Journal through an electronic system and use that information for of Public Administtraton, Vol LIV, No.1, Janurary-March,pp.141-decision making. It will require skilled navigation to ensure a 159 smooth transition from old processes and manual operations to

new automated services without hampering the existing Sharma , Tejinder, (2002), “e-governance: Process Re-engineering services. This can be achieved by initially moving ahead in Approach” The Indian Journal of Public Administtraton, Vol XLVIII,

No.4, October-December. P-607.smaller informed initiatives in a time bound manner and avoiding large and expensive steps without understanding the http://www.iosrjen.org/Papers/vol2_issue9%20%28part-full social implications. Every small step thus taken should be 2%29/A0290105.pdfused to learn about hurdles and improve upon the next steps,

http://haryanait.nic.in/edisha/eDisha%20Agenda%20for%2013th%both in terms of direction and magnitude. The proposed 20Meeting%20of%20IT%20PRISM.pdfchanges are likely to be met with a lot of inertia which cannot

http://www.scirp.org/journal/PaperInformation.aspx?paperID=664be overcome by lower and middle level officials with half #.U2yLp9nhHIUhearted attempts to diffuse the technology. The change in the

mindset to develop and accept the distributed and flat www.haryana.gov.in

*Assistant Professor, Kurukshetra Institute of Technology and Management, Pehowa Road Kurukshetra, Haryana (India)


Ms. Reeta*

Measurement and Management of Transaction Exposure in Indian Companies

Introduction activities of borrowing or lending funds in foreign currency. MNCs prepare consolidated report of all of its Transaction exposure can be defined as the sensitivity of transactions even those related to their subsidiary units "realized" domestic currency value of the firm's in order to compute the expected net positions in each contractual cash flows denominated in foreign foreign currency for the enterprise as a whole (Alan C. currencies to unexpected exchange rate changes. The Shapiro, 1983). In this study transaction exposure has firm is subject to 'transaction exposure' when it faces been calculated on the basis of overall net exports, contractual cash flows that are fixed in foreign foreign currency inflows and foreign currency outflows. currencies. Suppose that a U.S. firm sold its product to an Rate of exposure has been calculated as a percentage of Indian client on three month credit terms and invoiced exposure to net sales. The companies whose exports are `10 lakh. When the U.S. firm receives `10 lakh after greater than the imports have positive transaction

three months, it will have to convert (unless it hedges) exposure and the companies whose exports are less than

the rupees into dollars at the spot exchange rate the imports have negative transaction exposure.

prevailing on the maturity date, which cannot be known Similarly, the companies having more foreign currency

in advance. As a result the dollar receipts become inflows as compared to their foreign currency outflows

uncertain. It implies that if the firm does nothing about get benefited by positive exposure and vice versa. For

the exposure, it is speculating on the future course of the the Indian companies the major source of foreign

exchange rate. Changes in exchange rates can influence currency inflows is exports. Many of the MNCs in India

MNCs' current and future expected cash flows and are also enjoying foreign currency inflows in the form of

ultimately, stock prices. The direction and the magnitude commission, interest on lending, dividend on their

of changes in the exchange rate on firm value are a foreign investments, royalty, fee for their technical

function of the firm's corporate hedging policy and the know-how, agency commission and other overseas

structure of its foreign currency cash flows (P. G. Apte, contracts. The major reason for foreign currency

2008). In India, specific foreign currency transactions outflows is import of raw material, stores and spares and

are permitted. Companies operating in India face capital goods. There are many other transactions which

transaction exposure only when they indulge in export or are resulting in foreign currency outflows such as

import transactions. Sometimes they also indulge in the payment for royalty, research and development,

ABSTRACT

The value of a firm's assets, liabilities and operating income vary continually in response to changes in a myriad of economic and financial variables such as exchange rates, interest rates, inflation rates etc. uncertainties related to its operating business such as interruptions in raw materials supplies, labour troubles, success or failure of a new product or technology and so forth obviously have an impact on the firm's performance. In India, specific foreign currency transactions are permitted. Companies operating in India face transaction exposure only when they indulge in export or import transactions. Sometimes they also indulge in the activities of borrowing or lending funds in foreign currency. The present paper is designed to study the measurement and management techniques of transaction exposure used by the selected Indian companies. To achieve this objective, data has been collected from 50 Indian companies through questionnaire. Data has been analysed by using statistical tools such as percentage, mean score and ANOVA. The results show that most of the firms consider transaction exposure as an important risk and they are well aware about the various techniques of measurement of transaction exposure. The financial experts expressed that by using various derivative instruments like forward, future, swap, options and through currency diversifications transaction exposure can be managed very efficiently.

Keywords: Export, Import, Cash-Flows, Derivatives

151


152

trademark fees, legal fees, professional and project consultancy fees, supervision charges, subscription membership fees, overseas contracts, overseas office and branches, software development of branches, dividend to shareholders, international borrowings, interest on foreign currency term loans, foreign travel, issue of foreign currency convertible notes, foreign bank charges, and discount etc.

requires large increase in return for assuming small increases in risk. The more aggressive investor will accept smaller increases in return for large increases in risk. The researchers concluded that the psychology of the stock market is based on how investors form judgments about uncertain future events and how they react to these judgments.

R. Venkataramani (l994) disclosed the uses and Success of a business enterprise largely depends on how dangers of derivatives. The author said that the effectively it manages its foreign exchange exposure. It derivative product can lead us to a dangerous position if must regularly enter into hedging strategies. Hedging its full implications are not clearly understood. Being refers to a strategy that strives to minimize the risk of off-balance sheet in nature, more and more derivative exchange rate fluctuations, thereby minimizing the products are traded than the cash market products and uncertainty of future transactions denominated in they suffer heavily due to their sensitive nature. He foreign currency and providing some stability to brought to the notice of the investors the 'Over the earnings and cash flow of the firm. Daniel A. Potash counter product' (OTC) which are traded across the (1998) provides four approaches to handle foreign counters of a bank. Over the counter products (e.g. exchange exposure: Creation of reserves, use of Options and futures) are tailor made for the particular derivatives/instruments, guarantee from corporate/bank need of a customer and serve as a perfect hedge. He and denominating everything in one currency. emphasized the use of futures as an instrument of hedge, Derivative instruments, forward, future and currency for it is of low cost. swaps act as an integral arbitrage link between the S. Rajagopal (1996) commented on risk management interest rates of different developed countries. These in relation to banks. He opined that good risk swaps are used to hedge flexibility to exploit their management is good banking. A professional approach comparative advantage in their respective borrowing to Risk Management will safeguard the interests of the markets. They allow companies to exploit the global banking institution in the long run. He described risk capital markets more efficiently. Banks can now hold identification as an art of combining intuition with diversified portfolios of global credit and global credit formal information. And risk measurement is the equivalents with derivative overlays used to manage the estimation of the size, probability and timing of a various types of foreign exchange exposure (Chand potential loss under various scenarios.Sooran, 1999).

Charles. P. Jones (1996) reviewed how to estimate Literature Review security return and risk. To estimate returns, the Bodnar and Gentry (1993) examined exchange rate investors must estimate cash flows the securities are exposure at industry level for Canada, Japan, and U.S. likely to provide. Also, investors must be able to over 1979-1988. The study found that variance of the quantify and measure risk using variance or standard exposure coefficients is smaller for U.S. firms than deviation. Variance or standard deviation is the accepted Canada and Japan. They also concluded that small and measure of variability for both realised returns and open economies are more sensitive to exchange rate expected returns. He suggested that the investors should fluctuations. use it as the situation dictates. He revealed that over the

past 12 years, returns in stocks, bonds, etc. have been Donald E Fischer and Ronald J. Jordan (1994) normal. analysed the relation between risk, investor preferences

and investor behaviour. The risk return measures on V. T. Godse (1996) revealed the two separate but portfolios are the main determinants of an investor's simultaneous processes involved in risk management. attitude towards them. Most investors seek more return The first process is determining risk profile and the for additional risk assumed. The conservative investor second relates to the risk management process itself.


153

Deciding risk profile is synonymous with drawing a risk the hedge funds typically have an optimal level of picture and involves the various steps like: First, leverage. Optimal leverage was shown to differ across Identifying and prioritizing the inherent risks; second, hedge funds reflecting their de-levering costs, Sharpe measuring and scoring inherent risks; third, establishing ratios, correlation of assets, secondary market liquidity standards for each risk component; fourth, evaluating of their assets, and the volatility of the assets. By using a and controlling the quality of managerial controls; fifth, minimum level of un- encumbered cash level as a risk developing risk tolerance levels. He opined that such an limit, the research showed how a hedge fund can elaborate risk management process is relevant in the optimally allocate its risk capital, across different risk-Indian context. The process would facilitate better taking units to maximize alpha in the presence of the understanding of risks and their management. short option positions.

John Capstaff, Andrew Marshall, Julie Hutton Murillo Campello, Chen Lin (2010) looked at the (2007) found that the decline in the use of foreign consequences of hedging for firm financing and exchange derivatives was greater for firms with investment. To do this the researchers used hand-substantial sales within the euro zone and less for firms collected data on hedging and loan contracts. The in industries that still had significant imports from present paper analysed that hedging can lower the odds outside the euro zone. The reduction in hedging is not in of negative profit realizations and can reduced the direct proportion to the reduction in foreign exchange expected costs of financial distress. The results exposure. identified two channels (cost of borrowing and

investment restrictions) through which hedging affects Sathya Swaroop Debashish (2008) concentrated on firm outcomes. recent foreign exchange risk management practices and

derivatives product used by large non-banking Indian- Research Objectives and Methodologybased firms. The study aimed at an understanding the The review of literature indicates that a very less number risk appetite and FERM (Foreign Exchange Risk of studies have been conducted in India on the subject of Management) practices of Indian corporate enterprises. 'transaction exposure management strategies'. Hence a The main part of the study deals with Indian corporate need was felt to conduct the present study. This study is enterprises' awareness of and attitudes to foreign undertaken primarily to describe the transaction exchange risk exposure. exposure management practices in the Indian corporate Söhnke M. Bartram, Günter Dufey, and Michael R. sector. An attempt is also made to examine the various Frenkel, (2009) analyzed the concept of foreign measurement techniques of transaction exposure in exchange risk, translation, transaction and economic banking and non-banking units in India. In sync with the exposure etc. The researchers said that in the presence of above mentioned objectives, the study intends to test the deviations from parity conditions such as purchasing following hypotheses:power parity and the international Fisher effect, non- • Null Hypothesis: there is no significant effect of financial corporations are confronted by risks stemming level of transaction exposure on the estimation of from the impact of unexpected exchange rate changes on exposure. the value of the firm. Nevertheless, professional firm-

• Alternative Hypothesis: there is significant effect wide risk management does not yet seem to be in place at of level of transaction exposure on the estimation all non-financial institutions. Consequently, the need for of exposure. implementing or improving risk management systems

appears especially strong for firms outside the financial The present study is descriptive in nature. To achieve the sector. objectives of this study, we have resorted to sampling

technique and the sample size consists 50 Indian John Dai and Suresh Sundaresan (2010) developed a companies having ranking in Fortune 500 list, which model of hedge fund returns, which reflect the include 12 banks and 38 non-banking companies. Data contractual relationships between a hedge fund, its has been collected with the help of questionnaire investors and its prime brokers. The results showed that

WorldRank

Company ForeigncurrencyInflows

ForeignCurrencyOutflows

Net Exposure

NetSales

NetExposure


154

facilitating face to face interviews with bank officials companies and by studying the annual reports of the and other persons connected with risk management companies it was found that majority of the companies operations. In order to measure importance assigned by have more imports and foreign currency outflows as the responding firms to the risk management aspects, the compared to their export and foreign currency inflows. responses were obtained on 5-point scale ranging from 1 Table 1.1 shows the level of transaction exposure of non-to 5. Here, 1 means unimportant, 2 means less important, banking companies worked out on the basis of foreign 3 means neutral, 4 means important and 5 means the currency inflows and outflows. The table indicates that highest importance given to an item. For the purpose of only 10 companies i.e. 26.315 percent of the total analysis, mean score was computed. To examine the respondents are having benefit due to positive significance of difference about the importance assigned transaction exposure and rest the entire sample to various items between banking and non-banking companies are facing negative transaction exposure. units, regression analysis and ANOVA test have been Tata Consultancy Services Ltd. has the highest applied. favourable transaction exposure that is

Results of Data Analysis

After having discussions with the financial experts of the Table 1.1 The Measurement of Transaction Exposure of Non –Banking Companies on the

basis of Net Foreign Currency Inflows & Outflows during 2010-11 ( ` Crores)


155Source: Capita-Line Database


156

Transaction exposure of banking companies compiled the banking companies have less than 10 percent of their on the basis of international assets is depicted in table total assets as international assets. ICICI bank, AXIS 1.2. International assets of banking units include foreign bank and the Bank of India have more than 20 percent of currency notes and gold, balances with banks outside their total assets as international assets. SBI, Bank of India, investment done outside India and advances done Baroda and Canara bank are having international assets outside India. The results also revealed that 50 percent of in between 10-20 percent of their total assets.

Table 1.2: Transaction exposure of Banking Companies Computed on the Basis of Size

of International Assets during 2010-11 ( ` Crores)

S. No. Banks DomesticAssets

International Assets

TotalAssets

% age ofInternational

Assets toTotal Assets

Source: Capita Line Data Base

Usually it is observed that company with high level of variable (i.e. estimation of exposure) and independent transaction exposure makes in-depth analysis and variable i.e. level of exposure. The same result is shown applies various statistical tools in making estimation of by ANOVA in table 1.3A, where F value is not its transaction exposure. On the basis of this general significant at 5 percent level. So the null hypothesis is observation, null hypothesis that there is no significant accepted. Some of the companies facing even very low effect of level of transaction exposure on estimation of level of transaction exposure make proper estimation of exposure has been framed. This hypothesis has been their exposure by applying statistical techniques. They analysed with the help of regression analysis. The table also take help of experts to estimate the transaction 1.3 indicates very low (1.5%) variance in the dependent exposure of the companies.


157

Table 1.3: Model Summary of Regression Analysis

Predictors: Level of Exposure

Predictors: Level of ExposureDependent variable: Estimation of Exposure

Table 1.3 (A): ANOVA Effect of Level of Transaction Exposure on Estimation of Exposure

There are various hedging techniques available in However, corporates are allowed to roll over the national and international market which can be applied contracts. Use of derivative is allowed only for hedging to mitigate transaction exposure. India has a strong purpose by banks and corporates and not for speculative dollar- rupee forward market with various types of purpose. The next question of the survey was aimed to contracts being traded for one, two, six-months and one know which techniques/hedging strategies is used for year expiration. Most of the forward transactions are for the management of the transaction exposure. The survey a maximum maturity of six months (Anuradha results as revealed in Table 1.4 demonstrate that forward Sivakumar). At present, companies are allowed to enter contracts, currency futures, currency swap and currency into forward contract to hedge their foreign exchange options are more preferable hedging techniques as exposure in respect of only those transactions for which compared to others. More than 85 percent firms were sales and purchase of foreign exchange is permitted. found using derivatives. 96 percent companies hedge Currently residents are allowed to freely cancel and their transaction exposure with the help of forward rebook their booked forward contracts in respect of contracts.foreign currency exposures falling due within one year.

Table 1.4: Strategies used by Companies for Transaction Exposure Management


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John Wiley and Sons Incorporation, New York, Toronto, Singapore, Conclusion pp. 55-76.

This paper made an attempt to point out the various facts Daniela A. Potash (1998), “Exchange Rate Risk and Its

related to the measurement and management practices Determinants: Evidence from International Stock Markets”, pages about transaction exposure in Indian companies which 171-185.

include both banking and non-banking units. It can be Donald. E. and Fisher Ronald J. Jordan, (1994), “Security Analysis concluded that majority of the Indian firms have more and Portfolio Management”, Prentice Hall of India (Pvt) Ltd. New

Delhi 110001.foreign currency outflows as compared to the foreign Franke, G., R. C. Stapleton and M. G. Subrahmanyam (1998), “Who currency inflows and consequently they are having Buys and Who Sells Options: The Role and Pricing of Options in an negative transaction exposure. As compared to non-Economy with Background Risk”, Journal of Economic Theory,

banking companies, banking companies are more active Volume 82, pp. 89-109.

regarding the measurement and management of their Helen Popper (1996), “Banks and Foreign Exchange Exposure”,

transaction exposure. FRBSF, Economic Letter, pp. 22-25.

Regarding the estimation of the transaction exposure, the John Capstaff, Andrew Marshall and Julie Hutton (2007), “The Introduction of the Euro and Derivative Use in French Firms”, study concluded that there is no significant effect of level Journal of International Financial Management and Accounting, of transaction exposure on the estimation policy of Volume 18, Issue 1, pp. 1-17.

transaction exposure. Companies are actively using John Dai and Suresh Sundaresan (2010), “Risk Management various hedging strategies for managing their Framework for Hedge Funds: Role of Funding and Redemption

transaction exposure. It is investigated that forwards Options on Leverage”, pp.22-31.and options are preferred as short term hedging

Madhu Vij, (2008), “Foreign Exchange Exposure Management instruments while swaps are preferred as long term Practices of Indian Firms-An Empirical Analysis”, Available at hedging instrument by major Indian firms of different http://ssrn.com/abstract=1331760.

sectors. Companies can use one or combination of two or Modigliani, F. and Miller, M.H. (1958), “The Cost of Capital, Corporation Finance and the Theory of Investment”, American more hedging techniques to hedge their transaction Economic Review, 48, pp.61-97. exposure. It can be concluded that the companies have to Murillo Campello, Chen Lin, Yue Ma and Hong Zou (2010), “The alter their risk management system according to Real and Financial Implications of Corporate Hedging”, Electronic characteristics of the firm, hedging costs, nature of copy available at: http://ssrn.com/abstract=1570535.

operations, tax considerations and regulatory R. Venkataramani (1994), “Risk Management in International requirements etc.Treasury Operations”, State Bank of India,Monthly Review, Vol. XXXIII, No. 12, pp.577.References

S. Rajagopal (1996), “Bank Risk Management - A risk pricing Anuradha Sivakumar and Runa Sarkar (2006), “Corporate Hedging model”, State Bank of India, Monthly Review, VoIume XXXV, for Foreign Exchange Risk in India”, pp. 5-10No.11, pp.555.

Asani Sarkar (2006), “Indian Derivative Markets”, The Oxford Sathya Swaroop Debasish, (2008), “Foreign Exchange Risk Companion to Economics in India, pp. 5-10, electronic copy Management Practices – A Study in Indian Scenario”, BRAC available atUniversity Journal, vol. V, no. 2, pp. 81-91.

http://www.newyorkfed.org/research/economists/sarkar/derivativesSöhnke M. Bartram, Gregory W. Brown, and Murat Atamer, _in_india.(September, 2009), “How Important is Financial Risk?” Version

Bodnar G. M. and W. M. Gentry (1993), “Exchange Rate Exposure 3, Available at http://ssrn.com/abstract =1031910. and Industry Characteristics: Evidence from Canada Japan and

V.T.Godse (1996), “Conceptual Framework for Risk Management”, U.S.”, Journal of International Money and Finance, PP. 29-45.I.B.A. Bulletin, pp. 22.

Charles, P. Jones (1996), “Investment Analysis and Management”,

*Assistant Professor, Department of Commerce, Shaheed Bhagat Singh College (University of Delhi)**Assistant Professor (Senior Scale), Department of Commerce, Shaheed Bhagat Singh College (University of Delhi) ***Deputy Director (academic) National institute of open schooling, A-24 -25 sector 62 Noida.


Dr. Vijay Vrat Arya*Dr.Amit Kumar Singh**

Dr.Manju Gupta***

Companies Bill, 2011 as a Wakeup response for Corporate Misgovernance and Scandals in Indian Corporate Sector

Introduction Global Crossing, Xerox, Tyco and Satyam reflects as some of the examples, which were initially known for Debates on effective corporate governance are all time their good governance and had gained major share in the issue. Corporate misgovernance, collapses and frauds market. Later on, various misgovernance practices such have left the serious concern for almost every corporate as, misappropriate accounting policies, misleading in the world, to establish a mechanism for safeguarding statements, unethical business practices, lack of the business from any collapse or fraud in coming future. transparency and disclosures caused heavy losses to the Worldwide experiences force strictly to adopt the shareholders as well as other stakeholders. All such principle and guidelines of corporate governance as companies were exposed to probable threats, suggested from time-to-time, particularly in the era particularly when the principles of corporate where reputed companies failed due to unhealthy governance were not followed or lacunae in adopting all business practices.measures suggested by different regulatory bodies. As a

Companies like Enron, HIH, WorldCom, Parmalat, result, economies interlinked to these corporate affairs

ABSTRACT

“Corporate Governance is concerned with holding the balance between economic and social goals and between individuals and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society.”

- Global Corporate Governance Forum, World Bank, 2000

Corporate governance is the key of corporate excellence. It extends beyond good corporate performance and financial propriety. Its essence has been considered after experiencing a crucial phase of corporate crises during 1970-1990, which include scam and scandals in developed countries like U.S.A., U.K. etc. As a wake up response to major financial scam and corporate failures, need to tighten surveillance over corporate framework and behaviour was realised. Effort articulating standards for corporate governance took its root in U.K. and U.S.A as early as in 90's and later to other countries also. The Foreign Corrupt Practices Act, 1977 (USA), OECD Principles of Corporate Governance (1999 and 2004), Sarbanes-Oxley (SOX) Act, 2002 (USA) and UNCTAD Guidance on Good Practices in Corporate Governance Disclosure, 2008 (UK) are some of the initial steps taken towards the corporate governance.

Corporate governance has also been under constant scrutiny as an issue that has gained widespread importance in Indian scenario. Its significance was realised after experiencing the Harshad Mehta stock scam during 1992. Which lead to various initiatives in the form of guidelines, in order to strengthen corporate governance by ensuring transparency and responsible Board structure. 'Desirable Code on Corporate Governance' initiated by CII in 1998 was one of the first initiative in this direction. Subsequently, scam in Satyam Software Services Ltd. during 2009 made a dent on prevailing statutory provisions of Companies Act, 1956 and lead to fill gaps by strengthening existing Companies Act. New Companies Bill, 2011, which has been introduced in Lok Sabha is being treated as a wakeup response for corporate misgovernance and scandals in Indian corporate sector.

Present paper is an insight to some well-known corporate misgovernances in Indian Corporate sector, highlighted as case studies and likely counter measures/safeguards in recently introduced Company Bill, 2011.

Keyword: Corporate Governance, Scandal, Unethical Business Environment, Misgovernance and Companies Bill, 2011

159


160

have collapsed several times resulting heavy losses to responsibility. The most common reasons for corporate shareholders and other stakeholders associated to these failures and scandals were lax board, fraud, lack of companies. transparency and inadequate disclosure, failure of

internal/external audit and unethical business conduct. Corporate governance, being the key of corporate Some renowned and high volume corporate failures excellence and implication extending beyond good leading the foundations for significant role of corporate corporate performance and financial propriety. As a governance in the globalised era, are summarised as wake up response to major financial scam and corporate under-failures, need for tight surveillance over corporate

framework and behaviour was realized after The Barings Bank in UK failed during 1995 by losing experiencing a crucial phase of corporate crises during more than $1 billion in unethical behaviour of trading. 1970-1990, which include scam and scandals in The HIH Insurance, an Australia based company, met developed countries like U.S.A., U.K. etc. Effort losses of around US$5.3 billion during 2001 due to articulating standards for corporate governance took its inefficient Board, ineffective audit committee and poor root in U.K. and U.S.A as early as in 90's and later to decision making under the dominance of its CEO. In the other countries as well. The Foreign Corrupt Practices same year Enron, a US based company reported an Act, 1977 (USA), OECD Principles of Corporate accounting loss of US$618 million and reasons Governance (1999 and 2004), Sarbanes-Oxley (SOX) identified for misgovernance were unethical corporate Act, 2002 (USA) and UNCTAD Guidance on Good functioning, lax board and misreporting of financial Practices in Corporate Governance Disclosure, 2008 statements. During 2002, six US based companies (UK) are among some of the initial steps taken towards namely, Tyco, Xerox Corporation, Global Crossing, the corporate governance. World Com, Adelphia Communications and Andersen

Worldwide reported corporate failure and scandals. Corporate governance has been under constant scrutiny Major problems noticed in these cases was misreporting as an issue, which gain widespread importance in Indian of financial statements, lax and conflicted board, scenario; realised after experiencing the Harshad Mehta external audit failure, unethical behaviour, etc.stock scam during 1992. Leading to various initiatives in

the form of guidelines, in order to strengthen corporate An accounting fraud of 14 billion Euros was reported in governance by ensuring transparency and responsible Italy based Parmalat Company during 2003 because of Board structure. 'Desirable Code on Corporate the falsified accounting documents. In the same year Governance' initiated by CII in 1998 was one of the first Netherland based Royal Ahold faced a problem of initiatives in this direction. Subsequently, scam in insider trading and unethical behaviour. In the Satyam Software Services Ltd. during 2009 made a dent subsequent year 2004, China Aviation Oil on prevailing statutory provisions of Companies Act, (Singapore/China based company) reported a loss of 1956 and lead to fill gaps by strengthening existing more than US$500 million. The reasons reported for Companies Act. New Companies Bill, 2011, which has such losses involve insider trading, misleading been introduced in Lok Sabha is being treated as a statements, etc.wakeup response for corporate misgovernance and At the international front safeguarding corporates from scandals in Indian corporate sector. financial scandals and future misgovernances was the International Scenario serious concern of developed countries, especially for

the USA and UK where maximum corporate scandals International scenario of corporate instability and failure have been reported, i.e., 12 and 4, respectively. As a is not restricted to developed or developing countries. It result, several committees constituted to address such is Indeed a phenomenon attracted attention world over issues have introduced various codes and standards on for any such organisation ignoring any of the five corporate governance. Table-1 below refers to some of principles of corporate governance, i.e., fairness & the committees setup to address the issues of corporate integrity, transparency & disclosures, accountability, governance along with their major recommendations. equitable treatment to all shareholders and social (See Table-1)


161

Source: Compiled from respective committee report/Acts.

Table-1Various International Committees on Corporate Governance


162

Table-2List of Sector Specific Regulators in India

As far as country-wise corporate failure and scandals is Kumara Mangalam Birla Committee (2000) and Justice concern, India is still a much preventive country, as V. Bala Krishna Eradi Committee (2000) are two of compare to U.S.A. and U.K., in terms of less number of them. Subsequently, two other scams - Stock Market corporate failure and amount of volume involved in Collapse (Ketan Parekh Scam) (2001) and Global Trust accounting loss. According to the survey on Bank failure (2002) made a major dent on existing legal effectiveness of corporate governance, conducted by the framework and provisions of existing Companies Act, World Economic Forum during 2003; UK, Sweden, 1956. This has lead to rethink on various gaps and USA, Singapore and Germany are ranked among the top problems in existing framework of corporate ten countries in the ranking of 49 countries on the governance. parameter of effective corporate governance. However,

Stock Market Collapse (Ketan Parekh Scam), 2001India in this ranking was placed at 32nd position (See

Year 2001 was bed dream for many, including big Liu, 2006).financial institutions and banks. The modusoperandi

Code for the corporate governance was first introduced was to build up a worthy and strong image of few stocks,

in India, in the form of 'Desirable Code of Corporate especially after the annual budget announcement. Mr.

Governance' issued by Confederation of Indian Ketan Parekh acquired all such funds for investment in

Industries (CII) during 1998 brought after the Harshad the security either from cooperatives or from other

Mehta stock scam (1992). Thereafter, several other banks, fraudulently. He got pay-orders and bankers

initiatives and guidelines were framed to strengthen cheques from his near once without any collateral as

existing framework of corporate governance. SEBI's security, which were further discounted from other

National Status governance principles. In addition to various legislative In India, the Companies Act, 1956 was the principal frameworks, there are certain regulatory bodies, which legislation, providing the formal structure for corporate ensure functioning of specific sector. Regulatory governance. The Monopolies and Restrictive Trade philosophy revolves around the regulatory roles and the Practices Act, 1969, the Foreign Exchange Regulation power vested in the regulation authorities along with Act, 1973 (which is now replaced by the Foreign basic principles like fairness; transparency in dealing of Exchange Management Act, 1999), the Industries the regulator and the regulated; consistent compliance (Development and Regulation) Act, 1951 and some pro-activeness, quality, professionalism and the self-other legislations, which had a bearing on the corporate regulation. (See Table-2 for various regulators in India)


163

banks. He also acquired funds of Rs.515 crore from Zee 2004. GTB reported an approximate loss of Rs.1200 Telefilms, Rs.700 crore from Hindustan Futuristic crore. The regulatory vigilance failed due to Communications Ltd and Rs. 256 crore from GTB bank. misgovernance of funds and involvement of top

management in malpractices such as window dressing. It Parekh's had massively invested in selected stocks and was also reported that heavy advances of around Rs. 800 raised the stock prices, causing a sharp jump in crore were made to corporates such as Zee Telefilms, SENSEX, BSE and NSE. However, the Bear Run HFCL & others at a very high risk. This has caused a manages to act on counter of Bull Run. As a result, negative net worth. The overall evidence of money invested in purchasing low prices stock at a high misappropriation of funds was found, as the price and thereafter, lowering down the price resulted in involvement of bank's top management with Ketan the loss of almost all invested fund which ultimately Parekh who is well known for 2001 stock market cause a big loss to all those who had funded Mr. Ketan collapse. Parekh. Still the valuation of scam is incomplete and it

highlights the misgovernance in all such funding Further to ensures the scope of fairness, transparency agencies. and accountability some other committees have been

setup to recommend guidelines to strengthen corporate Global Trust Bank Failure, 2002

governance by ensuring transparency and responsible The Global Trust Bank commenced its business in 1994 Board structure, etc. Some of such committees are as in India as a leading private sector bank, which later follows along with major issues addressed by them. (See merged with the Oriental Bank of Commerce (OBC) in Table-3)

Table-3Various Committees on Corporate Governance in India


164

Source: Compiled from respective committee report.

Even after several measures and guidelines, Indian Company Bill 2011: A Wakeup Responsecorporate sector passed through a shocking phase during The Companies Act, 1956 was active for about fifty-five 2009 after experiencing the biggest-ever corporate years and has been amended several times. As a scandal in India. replacement to existing Company Act, 1956, New

Companies Bill, 2011 has been introduced in the Lok Satyam Software Services Ltd. Scandal, 2009Sabha on 15th December 2011 with new additions and

Satyam Software Services Ltd. established in 1987 was amendments. Bill has strengthened the position of

an IT company. The Chairman of company, Mr. companies by addressing the pitfalls of corporate

Ramalinga Raju and other made a forgery and fraud, governance. The Bill contains 470 clauses and 7

which reported during 2009, with an estimated fraud of schedules as against 658 Sections and 15 schedules in the

over Rs.7,000 crore. It made a surprise in the market, as previous Companies Act, 1956. Bill received a strong

company had received 'Golden Peacock award on opposition; as a result bill could not be passed and,

Corporate Governance' from World Council for therefore, has been referred to 'The Parliamentary

Excellence in Corporate Governance, London during Standing Committee on Finance' for a fresh scrutiny in

2008, just one year back to the scandal. The reasons of view of large amendments and suggestions of the

the company failure are as follows:stakeholders. Some of the important remedial aspects

➢The strong position of assets and liquidity was introduced under the new Companies Bill are discussed shown in the balance sheet, which never existed. below:

➢Unconvinced role of Independent Directors Enabling Transparency, Clause 120

➢Compliances mentioned under SEBI clause 49 In order to bring transparency in companies, a new not adopted completely. Clause on 'maintenance and inspection of documents in

electronic form', has been introduced, which ensures to ➢Top management influenced the company's provide any document, record, register or minute, etc., to principle accounting policies and made falsified be kept in the electronic form or allowed for inspection. invoices and statements.This E-governance initiative enables a transparent

➢Company's huge fund was inappropriately environment including maintenance and inspection of

utilized and money laundering adopted.documents in electronic form, option of keeping of

➢Unauthentic business exercises by the senior books of accounts in electronic form, financial management and fraudulent internal auditor. statements to be placed on company's website, holding

of Board meetings through video conferencing or any ➢Inequitable distribution of powers among the key other electronic mode, voting through electronic means, personals of the company.etc.

➢Dubious role of rating agencies


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Corporate Social Responsibility, Clause 135 The clause also provides that an Independent Director or a Non-executive Director who is not a promoter or Corporate Social Responsibility, has been framed under key managerial personnel shall be held liable for acts of clause 135, enabling to constitute a Corporate Social omission or commission by a company which has Responsibility Committee of the Board for every occurred by his knowledge.company having net worth of Rs.500 crore or more, or

turnover of Rs.1,000 crore or more or a net profit of Rs.5 Duties of Director, Clause 166crore or more during any financial year. Mandate of

Duties of Director have been defined under this Clause, such committee is to formulate and monitor CSR

which provide that a director of a company shall act in policies of the company. It become mandatory to ensure

accordance with the company's articles. In case of that the company spends, in every financial year, at least

contravention, director is punishable with fine and if a 2% of the average net profits, made during three

director is found guilty of making any undue gain either immediately preceding financial years. This policy

to himself or to his relatives, partners or associates, he initiative is having two fold effects viz., one on the

shall also be liable to pay an amount, equal to that gain, various social sectors and activities including

to the company. The duties of Director have been education, health, hunger & poverty, gender equality &

defined and include the following:women empowerment, environmental sustainability,

• To act in accordance with the articles of the vocational skills & employment, etc. and second on the company.corporate response on the CSR compulsion.

• To act in good faith in order to promote the Appointment of Auditors, Clause 139objects of the company

It provides that a company shall appoint an individual or • To exercise his duties with due and reasonable a firm as an auditor at annual general meeting subject to

care, skill and diligence and shall exercise his written consent who shall hold office till conclusion independent judgment.of sixth annual general meeting. It also has provisions

for rotation of Auditors. • Not to involve in a situation in which he may have a direct or indirect interest that conflicts, or

Structure of Board of Directors, Clause 149possibly may conflict, with the interest of the

This Clause corresponds that every company shall have company.a Board of Directors with minimum and maximum

• Not to achieve or attempt to achieve any undue number of directors prescribes on Board. Prescribed

gain or advantage either to himself or to his class or classes of companies shall have atleast one

relatives, partners, or associateswomen director. The clause also seeks to provide that

• Not to assign his office and any assignment so every company shall have at least one director who made shall be void.stays in India for a total period of not less than 182 days

in the previous calendar year. It enforced all listed Structure of Audit Committee and Its Function,

companies to appoint Independent Directors at least Clause 177

one-third of the size of Board. Independent Directors It provides the requirement and manner of constitution shall hold office upto two consecutive terms. One term of audit committee. The Audit Committee shall consist is upto five consecutive years. It also mentioned that of a minimum of three directors with independent Nominee Director appointed by any institution, or in directors forming a majority and majority of members pursuance of any agreement, or appointed by any must have ability to read and understand financial Government to represent its shareholding shall not be statements. The further provides the functions of audit deemed to be an Independent Director. The clause committee. The clause also provides for the further provides for the provisions of rotation of establishment of vigil mechanism in every listed and independent director. Further the provision of prescribed class of companies.retirement of directors by rotation shall not be

applicable to appointment of Independent Directors.


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Prohibition on Insider Trading of Securities, Clause Defined Functions of Company Secretary, Clause 205195 This Clause specifies the functions of Company This Clause prohibits directors or key managerial person Secretary. The functions are inclusive in nature and inter of the company to deal in securities of a company, or alia provides for ensuring compliance with the counsel, procure or communicate, directly or indirectly, applicable secretarial standards. The clause further about any non-public price-sensitive information to any provides that specified functions shall not affect the person. This Clause also have a penalty provision with duties and functions of Board of Directors, Chairperson, imprisonment for a term upto five years or with fine upto Managing Director or Whole-time Director. Functions five lakh rupees extendable to 25 crore rupees or three of the Company Secretary include, reporting the Board times the amount of profits made out of insider trading, about compliances, to ensure that the company complies whichever is higher, or with both. with the applicable secretarial standards and to discharge

such other duties as may be prescribed.Appointment of Key Managerial Personnel (KMP), Clause 203 Establishment of Serious Fraud Investigation Office,

Clause 211 and 212Under this Clause, it is required for every company belonging to such class or description of companies, as These Clauses empowers the Central Government to prescribed by the Central Government, shall have constitute Serious Fraud Investigation Office (SFIO), managing director, or chief executive officer or manager which will be headed by a director (not below the rank of and in their absence, a whole time director and a Joint Secretary) and will consist of experts from various Company Secretary, as whole-time key managerial disciplines. It provides statutory status to SFIO enabling personnel. It is also specified under this clause that a it to investigate into such cases of companies involved in whole-time key managerial personnel shall not hold frauds as may be assigned to it by Central Government. office in more than one company (expect in a subsidiary

Conclusionat the same time except that of a director if company permits him in this regard. This clause further provides Causes of corporate failure exist more within the for punishment in case of contravention. organization. In contrary external events may cause a

crisis. Indeed, it is the nature of organizational response Clause 203 also has provision that Company Secretary to these events, which determines their success or will be appointed by a resolution of the Board, which failure. The determining principles of corporate success shall contain the terms and conditions of appointment are more or less similar in all cases; the path to failure including the remuneration. If any vacancy in the office may differentially vary. On reviewing the cases of of KMP is created, the same shall be filled up by the corporate misgovernance, some elements appear to be Board at a meeting of the Board within a period of six identical, which had closely effected the overall months failing which, heavy penalty is imposed.functioning of these companies. Involvement of senior

Secretarial Audit for Bigger Companies, Clause 204 level management as key players of misgovernance; adoption of unethical business practices; ignorance of Under this Clause, every listed company and companies standard setting accounting norms and business policies; belonging to prescribed class or classes of companies lack of whistler blowing mechanism & inefficient role shall annex a secretarial audit report given by a Company played by the auditors are some of the key component of Secretary in practice with its Board's report. The Board such practice. With the introduction of new Companies in its report shall explain any qualifications or other Bill, 2011, every single gap, which has possibility for remarks made by the Company Secretary in practice. corporate misgovernance is covered, however, future The clause further provides penalty for the company or events may hold scope as feedback for this Act. any officer of the company or the Company Secretary in

practice.


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Kaushik, K.V. and Dutta, K, (2005) Corprate Governance: Myth to ReferencesReality, Lexis Nexis Butterworths, New Delhi.

Argenti, J. (1976) Corporate Collapse: The Causes and Symptoms, Liu, Q. (2006) Corporate Governance in China: Current Practices, New York: McGraw-Hill.Economic Effects and Institutional Determinants, CESifo Economic

Baysinger, B. D., and Butler, H. N. (1985) Corporate Governance Studies, Vol. 52, No. 2, 2006.

and the Board of Directors: Performance Effects of Changes in Lurie, GD and JM Ahearn (1990) How Companies in Trouble Get Board Composition, Journal of Law, Economics, Organization, 1(1), There, Journal of Business Strategy, 11(6), 25-29.101–124.

Makridakis, S (1991) What Can We Learn from Organisational Cohen, D. (1973) Confidence comes before a crash, Business Failures? Long Range Planning, 24(4), 115-126.Administration, January 1973.

Miller, D and P Friesen (1983) Successful and Unsuccessful Phases of Financial Express (2002) Corporate Misgovernance, online at: Corporate Life Cycle, Organisational Studies, 4, 339-356.

http://www.financialexpress.com/news/corporate—misgovernance/Miller, D. (1992) The Lcarus Paradox: How Exceptional Companies 52682/Bring About Their Own Downfall, Business Horizon, (Jan-Feb),

Gopal, R (1991) Turning Around Sick Companies — The Indian 35(1), 24-35.

Experience, Long Range Planning, 24(3), 79-83Raghavan B.S. (2002) Misgovernance, Business Line, March 13.

Government of India (2011) The Companies Bill, 2011, Loksabha Sharma, J.P. (2011) Corporate Governance, Business Ethics and Bill no. 121 of 2011, New DelhiCSR, Ane Books Pvt. Ltd., New Delhi.

Hambrick, D.C. and Aveni, R.A.D. (1988) Large Corporate Failures Shukla, M. (1994) Corporate Failures: Why Organisations Fail to as Downward Spirals, Administrative Science Quarterly, 33, 1-23.Learn, Productivity, 1994, 34(4), 629-639.

Jaffe Ross Westerfield (2005) Corporate Finance, Tata McGraw Hill, New York.

*Assistant Professor of History, Govt. College for Women, Ambala City. (Haryana)


The Great Uprising of 1857 and Economy of Haryana

Dr. Atul Yadav*

3 There is perhaps no other event in the History of India, Council. The rest of the territory was given to a number which has attracted so much attention of the scholars and of Chiefs who had rendered meritorious services to the

4historians as that of the uprising of 1857. In the wake of British against the Maratha in the last war. By 1809, the th

the 150 year celebrations of 1857 we find a proliferation British had established their full control over the of literature on the subject. Even now with media in the Haryana territory.background books on the topic are coming quite IIregularly. But despite this, many problems connected

For centuries past the people of Haryana had enjoyed the with this great event have not been properly resolved. In 5 privilege of self-rule. There village communities,this paper an effort is being made to draw the attention of

owing no obligation to the government or any other scholars to the reasons, particularly the economic causes, authority except for the payment of the taxes, managed behind this uprising and its nature in the than South-East

6all their affairs . The Haryana society in the 1850s was Punjab i.e. Modern Haryana. The reason for choosing predominantly rural in character, about nine out of ten this topic is due to the geographical location of Haryana,

7people living in villages . By their self centered which in historical accounts is known as 'Gateway of imperialistic policy and actions the British rulers Delhi'. It becomes important to study the different produced here in abundance. The official interference in aspects of society, which were responsible for this the internal matters of the villages inflicted upsetting uprising.blows on the people of Haryana. They felt deeply

Idisturbed. In such circumstances it only required a spark

Political scientists almost unanimously hold that no self- for the bursting forth of a great conflagration. And at that respecting people can be satisfied with a foreign rule no time, unfortunately, the 'Kampany Bahadur' decided to matter how wise or good it might be. If proof was needed introduce new cartridges, which were greased with for this assertion, the British rule over Haryana from cow's fat and pig's lard. The sepoys in Indian Army came 1803 to 1857 provides it. The British East India to know of this and thus a chance spark, but a fiery one, Company acquired the Haryana region on December 30, fell upon combustible material and caught fire at once. 1803 from the Marathas vide the Treaty of Sirjianjan

III 1 Gaon. David Ochterlony, a military officer in the

Another factor on which I am concentrating in this paper company's service, was given temporary charge of the and which increased the unhappiness of Haryanvis and territory to manage its affairs as Resident under the

2 compelled them to raise hands against the British was directions of the Governour-General-in-Council. In economic. The new rulers followed a selfish economic 1805, a permanent solution of the problem of the policy based upon their well-known imperial principals management of Haryana was worked out. Delhi and a of subordinating the social interests to the British small wedge of territory on the right bank of the river interests. This policy hit almost every section of the Yamuna, comprising the Parganas of Panipat, Sonepat, Haryanvi community very hard, the worst sufferer being Samalkha, Ganour, Haveli Palam, to which were added peasants on which about 90 percent of the population subsequently, Parganas of Nuh, Tijara, Sohna, Rewari, depended directly or indirectly for their living.Indri, Palwal, Nagina and Firojpur, was placed under the

direct control of the Bengal government.Ochterlony was Before attempting a discussion on the land policy or made permanent Resident to run the political, civil, economic policy of the British, it is necessary to study in financial and judicial business in the territory under the brief about the land policy, which was in vogue before direct supervision of the Governour-General-in- their advent. There was village community in Haryana

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instead of Zamindar, which held the entire village land The situation, however, changed after the advent of the in common. The Muqaddams, the managers and leaders British. In order to induce the cultivators to feel secure, of the villages adjusted the quota of each sharer and the government decided to make a three years settlement collected the governments share and deposited it in the with them which was to be followed by a second for the government treasury through the agency of the same period and then by one of four years. This step of Qanungo, the lowest government official deputed to the Government must have pleased all the agricultural

8 classes-the peasant cultivators, tenants-at-will, crop collect revenues of a Pargana .sharers and agricultural labours but their happiness must

It is very difficult to calculate the Government's share of have proved short lived. The Settlement Officers instead

revenue collected by the Muqaddam, as it varied from of giving any relief to peasants, fixed governments 9place to place and time to time , because of its revenue at more than 50 percent of the gross produce

geographical condition. But in any case the without consulting or taking consent of the peasants in

Government's assessment (Jama) in those days never any way. The testimony of the later settlement officer

exceeded from 1/6 to 1/4 of the gross produce. At many suggests that when the settlements were made by their

times, especially during the Mughal era, the collection early officials the headmen of the village were

(Hasil) made were less than these rates. In Akbar's reign imprisoned till they agreed to the terms offered and

the Hasil of a Jagir in Sunam (Hissar) was many times having accepted them, till they furnished security for

less than its Jama. During the reign of Shahjhan and 11payment. Such revenue policies made farmers, who Aurangzeb the same practice was followed. 'On the other

had good harvest, defaulters and 'had to visit jails four or hand', says Irfan Habib, the difference between them was

five times' in few years. recognized for a fact and the annually changing ratio

The mode of collection of land revenue was as between the receipts and the standing assessment was extortionist as the assessment was oppressive. The marked out for each Mahal (village) and expressed in collection was made in February and September long terms of month-proportions (Mahawar). Thus where the before the harvest. The situation was further worsened current Hasil equaled half Jama, the Jagir was styled 'six by the famines year after year. In the first fifty years of monthly' (Shahmaha), where it was one fourth, 'three

thmonthly' (Sihmaha) and so on. After the death of 19 century (1800-1850) Haryana had faced 8 great Aurangzeb, even this practice could not continue and the famines, which made the peasants and the other classes people hardly paid any revenue at all unless forced to do associated with them directly or indirectly poorer to

10 poor. (Table-I).so militarily.

Year Local Name Samvat Effect

1803-04 Saatha 1860 Scarcity

1812-13 Unhattra 1869 Scarcity

1817-18 Chohtra 1874 Scarcity

1824-25 Ekasia 1881 Scarcity

1833-34 Nabewa/Nawwia 1890 Sever Famine

1837-38 Chornmewa 1894 Sever Famine

1843-44 Unissova 1900 Scarcity

1850-51 Saata 1907 Scarcity

Table-Ith 12Famines in Haryana during the 19 century


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After the forties the situation was further worsened by descendants and officials became opponents of the 13 British rule.the sharp decline in the prices .

IVIn these circumstances when the peasants had nothing with them in cash or hand, and the fear of Settlement On hearing the news of the happenings at Ambala, Officer and visit to jails compelled him to go to the Meerut and Delhi, the people of Haryana rose en masse village Bania, the moneylender, to borrow money to pay and opposed the British authorities tooth and nail. It was the land revenue. Moneylender charged a high rate of a good opportunity for them to take revenge from the interest, which the poor borrower had to pay at every British and the moneylenders. Almost the entire Haryana harvest by selling him his produce and other belongings, had come within the orbit of the revolt. The districts of at times even the ornaments of his wife. At that time it Gurgaon, Rohtak, Hissar and Karnal and the states of was common that if a poor went to a moneylender, his Jhajjar, Ballabgarh, Farukhnagar, Pataudi, Bahadurgarh,

14next three generations could not clear off the interest . Dujana and Loharu joined by the end of May and the If the poor peasant went to the British courts to seek district Ambala, a bit later. The states of Jind, Kalsia and justice from moneylender, he was, in most of the cases, a Buria as also 11 small Jagirs, however, remained calm loser. and unaffected throughout owing to the strict measures

17adopted by their loyal rulers.In this situation the Government made the collection with the help of a large force kept everywhere for this Incidents of the revolt show that villagers of then Karnal purpose. In Karnal, 136 horsemen were deployed for district from Noltha, Kurana and Bhasli Zail refused to collecting land revenue while 22 sufficed for police give land revenue to the Settlement Officers in an duties in the area. It completely shattered the peasant's organized manner while the villagers of Siwan, Asandh, economy and quite a few of them deserted their villages. Jalmana, Salwan, Balla and Dachar etc. also refused the In Sonepat Pragana nine villages of Pabasara, land revenue but they were not organized. They used Chidy,Yusufpur, Chasanali, Ghyaspur, Sunpara, their agricultural tools like Ballam, Daranti, Neje, Jeli, Panava, Patti Brahmann and Begha, settled in 1826, Lathi and stones as weapons and followed Guerilla

15were completely deserted by 1842 . The situation was warfare. They burned and looted collector offices, police same throughout Haryana. This explains why we come stations (Thanas), Tahsils, papers of moneylenders and across such remarks in the contemporary revenue almost all the symbols of British authorities were records as “this village is entirely abandoned'; 'half the demolished. If we have a look on the leaders who led the villagers of this village have run away'; 'only five popular upsurge (Table-II), out of 21 leaders 10 were families are left in this village.' feudal chiefs (7 ruling and 3 dispossessed), three were

state or British Government officials; one was a religious Economic policies of Britishers not only shattered the leader and the rest of them were petty tradesmen and peasantry but it had its adverse effects on village artisans

19peasants . and menials too, as both were directly or indirectly dependent on peasants. Like peasants in villages, the This clearly shows the nature of the upsurge in Haryana. townsmen, broadly following four major professions (i) Here all the revolutionaries from the Prince to the services (ii) trade (iii) crafts and industries and (iv) Peasants were against the British due to their policies,

16labour, also became victims of British exploitation . A especially the economic policy. It is concluded that this large number of feudal chiefs were also unhappy with upsurge was started as a soldier's revolt but Haryana the British Government, for it had either bitten off large gave it a shape of national form.portions of their ancestral estate, or in some cases their possessions entirely. The dispossessed chiefs, their

Vol 3, Issue II, July-Dec. 2013 ISSN 2249-4103 GGGI Management Review A Bi-annual Refereed International Research JournalA

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12. Spear P.G.T, Twlight of the Mughals, Cambridge, References 1951,p.117.

1. For the full text of the Treaty see Aitchison, C.V.A., 13. Yadav K.C., The Revolt of 1857 in Haryana, New Delhi, Collection of Treaties, Engagements and Sanads Relating to

1977, p.3India and Neighbouring Countries, Vol.IV, pp.42-46, Calcutta,1932. 14. Innes, Lt.Gen.J.J.Mcleod, The Sepoy Revolt-A Critical

Narative, London, 1963 p.52.2. He held temporary charge up to 1805 when he was confirmed. 15. The couplet is still popular-

3. Yadav K.C., Haryana: Studies in History and Culture, New 16. For details see Irfan Habib, The Agrarian System of Moslem Delhi, pp.72-73. India, New Delhi, 1963, p.264; Baden Powal, Agrarian

system of Mughal India; The Land System of British India 4. Nawab Rehmat Khan was confirmed in his jagir of Kunjpura, Vol. II; Land Revenue and Tenure in British India, New Delhi, whereas Begum Samru of Sardhana was given a pargna each 1978, pp.172; The System Village and Mahal Settlement Vol. in Karnal and Gurgaon-For detail see- Foreign III, Oxford, 1892, pp.52-53.Miscellaneous, No.282, pp.303, 326-27;

17. Yadav K.C., The Revoltof 1857 in Haryana, New Delhi, 5. Aitchison, C.V.A., Collection of Treaties,Engagements and 1977, p.26.Sanads Re la t ing to Ind ia and Neighbour ing

Countries,Vol.VII, pp.120-22, Calcutta,1932; 18. Chhatar Singh, Social and Economic Change in Haryana, 2004, p.225. 6. Hamilton, Walter, A Geographical, Statistical and Historical

Description of Hindostan and the Adjacent Countries, Vol. I, 19. The couplet tells about the economic and social conditions of pp.408-409, 457-58, New Delhi, 1971; that time-

7. Foreign Political Proceedings, Nos.17-20, October24, 1805- 20. See Melcom Darling, Punjab Peasants in Prosperty and Vide Buddha Parkash, Debth, London, 1928; Surajbhan, Haryana me Savtantrata

Sangram and Girish Mishra, 1857 ki Parasthbhoomi in 8. Haryana Through the Ages, 1967, Kuruksheta, The Glimpses Nayapath, 2007, New Delhi.of Haryana, 1967, Kurukshetra;

21. Yadav K.C., The Revolt of 1857 in Haryan, New Delhi, 1977, 9 K.C. Yadav, The Revolt of 1857 in Haryana, 1977, New pp.27, 29Delhi;

22. Ibid10. Atul Yadav, Haryana and the Armed Forces (1914-1991), Unpublished Ph.D. Thesis, Kurukshetra University. 23. See Malcom Darling, Punjab Peasants Prosperity and Kurukshetra, 2003. Debts, London, 1928; Surajbhan, Haryana me Savtantrata

Sangram and Girish Mishra, 1857 ki Parasthbhoomi in 11. For detailed study of the village communities see Henry Nayapath, 2007, New Delhi.Maine, Village Communities in the East and West; Baden

Powel, The Indian Village Community; The Origin and Growth of Village Communities in India.

* Professor, Deptt. of Education, M.D. University, Rohtak ** Principal, Gita Niketan Awasiya Vidyalaya, Kurukshetra, Presently Research scholar in Deptt. of Education, M.D.University, Rohtak.


Teaching Effectiveness of Teachers Working in Different Types of Schools with Respect to Organisational Climate

Dr. Madhu Gupta* Rishi Goel**

Introduction got institutionalized with the entry of specialized people and professional jobs. Teacher plays an important role in In recent years, the word organizational climate has the social reconstruction and in the transmission of attracted the attention of social scientists, educationists wisdom, knowledge and experiences of one generation and management experts. The climate is the 'feel' of the to another. Children are the potential wealth of a nation. institution, its 'personality' or its 'individuality' or its They are always exposed to the information of the 'inner-life'. It has a great impact on the output capacity of teacher. It is therefore necessary to realize that the the institution. The climate in educational institution emerging Indian society can achieve all round affects the teachers and their teaching & the learners and development with the help of the teachers who act as a their learning. Climate can be compared to a fertile land powerful agency in transmitting its cherished values. where seeds are sown, and from which fruits are gathered Teaching is a series of events through which teacher later. Whatever be the high quality of the seeds, the attempts to bring desired behavioural changes in technical competence of the grower, and the financial students. It imparts useful information to the students resources available, all will depend on the fertility of the and develops harmonious relationship between the soil as well. A similar analogy will hold good in an teacher, the students and the subject. It is a step to bring educational environment. It is this climate which can be about greater opportunity for the students to become found conducive for the teachers to teach and the educated. It is a complex situation with a wide range of students may feel like learning in it. School activities wherein the teacher is the focal point. Teaching organizational climate may work to develop apathy in effectiveness involves a set of teaching behaviours the minds of the teachers for teaching and at the same which are specially effective in bringing about desired time it can prove to be instrumental in creating changes in students learning. Effectiveness of the distance for learning in the minds of the learners.teacher depends on the ability of the teacher to get along

The process of education revolves around the teacher. It with the pupils in interpersonal relationship.

ABSTRACT

The present study was conducted to study the effect of organisational climate on the teaching effectiveness of teachers working in different types of the schools viz. residential and non residential schools of Haryana. The sample consisted of 30 schools which were selected out of CBSE affiliated schools located in Haryana through random sampling technique. Out of 30 schools, 15 were residential and 15 were non residential. Again from each school, 10-15 teachers were randomly selected and finally the total sample consisted of 414 teachers out of which 196 teachers were from residential schools and 218 teachers from non residential schools. School Organizational Climate Description Questionnaire SOCDQ by M.L Sharma was used to find out the organisational climate of schools as perceived by the teachers. Teaching effectiveness of those teachers, who rated their organisational climates as most effective and least effective, was compared by using Teaching Effectiveness Observation Scale (TEOS) by Gupta & Jain (2007). The obtained data was analyzed using mean, S.D's and t-test. Findings of the study indicate that within most effective climate, there was a significant difference in teaching effectiveness alongwith its aspects among teachers working in residential and non residential schools. Teaching effectiveness was found better in most effective organisational climates of residential schools. The study further revealed that within least effective organisational climates, a significant difference was found in the teaching effectiveness of residential and non residential schools. Non residential school teachers showed better teaching effectiveness in the segment of least effective organisational climate.

Kewy words : School Organizational Climate Description Questionnaire, residential and Non residential school

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Study of research literature on teaching effectiveness When teaching process results in changes in overt and suggests that teaching effectiveness is enhanced by open covert behaviour of student and knowledge and and autonomous climates (Varsheveya 1981, Natrajan & personality of the teacher are actually transmitted to the Dandepani 2002). Teaching Effectiveness has been student the teaching is said to be effective.identified as a crucial factor for the success of education Organizational Climate reforms by such researchers as Cheng (1996), Hopkins

The organizational climate is the feel of the institution, (2000), Lieberman and Miller (1999), Pipho (2000), and its personality and its individuality resulting from social Sergiovanni (2000). Study of research literature on and psychological interaction between teachers and the teaching effectiveness suggests that teaching principal and within the groups of teachers and students effectiveness is enhanced by open and autonomous of a particular educational institution. climates (Varsheveya 1981, Natrajan & Dhandepani

2002). Teachers perceiving their climate as autonomous Residential Schoolsexhibited better teaching effectiveness than those who

Residential schools are those schools in which students perceive their climate as closed one (Sodhi 2012).

stay away from the parents and reside in the Teaching Effectiveness differs significantly along the

accommodation provided by the school and follow a 24 type of school organisational climate (Riti 2012). Type

hrs fixed scheduled prescribed by the school.of school has a significant influence on the intellectual

Non Residential Schoolsaspects of teaching effectiveness like activity based teaching, child centred approach and novel strategies of These are the schools in which student come in contact professional competency (Joseph Bella 2013). These of teachers for a limited period generally six hours a day.studies establish the centrality of teaching effectiveness

Method & Procedurein the system of education. Very few studies have been

Method: Descriptive survey method was used in the conducted to assess the impact of organizational climate present study.on teaching effectiveness of teachers. Therefore the

present study was taken up to assess the impact of Sample: The sample consisted of 30 schools selected out organizational climate on teaching effectiveness of of 1500 CBSE affiliated schools located in Haryana teachers working in different types of schools viz. through random sampling technique. Out of 30 schools, residential and non residential schools. 15 were residential and 15 were non residential. Again

from each school, 10-15 teachers were randomly Variables Involved selected and finally the total sample consisted of 414

In the present study, teaching effectiveness and its teachers out of which 196 teachers were from residential

aspects constitute the dependent variables where as schools and 218 teachers from non residential schools.

organizational climate has been treated as independent By using M ± 1, it was found that 85 teachers from

variable.residential schools & 61 teachers from non residential

Objectives of the Study schools (who scored more than 160) perceived their organisational climates as most effective while 57 1. To compare the teaching-effectiveness and its teachers from residential schools & 52 teachers from aspects of teachers working in most effective non residential schools (who scored less than 125) organizational climates of residential schools and perceived their organisational climates as least effective. non residential schools. Teaching effectiveness of only those teachers working in

2. To compare the teaching-effectiveness and its residential and non residential schools who rated the

aspects of teachers working in least effective organisational climates as most effective and least

organizational climates of residential and non effective respectively was compared.

residential schools. Tool Used

Definitions of Key WordsOrganisational Climate Description Questionnaire

Teaching Effectiveness: (OCDQ) by M.L. Sharma (1973) was used to find out


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the organisational climate of schools as perceived by the Statistical Techniques Used: t test was used to assess teachers. It consists of 64 items measuring different eight the significance of difference in the teaching dimensions of organisational climate namely, effectiveness of teachers perceiving their disengagement, alienation, esprit, intimacy, psycho- organisational climates as most effective and least physical hindrance, controls, production emphasis and effective in residential and non residential schools.humanized thrust. The items related with positive Analysis And Interpretation dimensions i.e. esprit, intimacy, production emphasis

The objective of the study was to compare the teaching and humanize thrust were scored as 1 (rarely occurs), 2 effectiveness and its aspects i.e. review of home (some times), 3 (often) and 4 (very frequently), while the assignments, introduction of lesson, development of items related with negative dimensions that is lessons, ending of lesson and classroom climate among disengagement alienation, psycho-physical hindrance the teachers of residential and non residential schools and controls were scored vice-versa i.e. 4 (rarely occurs), based on their perception about organisational climates. 3 (some times), 2 (often), 1 (very frequently)To achieve the objective of the study, the data were

Teaching Effectiveness Observation Scale (TEOS) by subjected to t-test for the mean scores for the teaching Gupta & Jain (2007) was used to assess the teaching effectiveness and its aspects with respect to effectiveness of those teachers who rated their organisational climates. instructional management behaviour as most effective or

Comparison of Teaching Effectiveness and its aspects least effective. It deals with five aspects of teaching for teachers working in Most Effect ive skills which encompass the entire teaching in the Organisational Climates with respect to Residential classroom. They are: review of home assignment, and Non Residential Schoolsintroduction of the lesson, development of the lesson,

ending of the lesson, and classroom climate. Here, teaching effectiveness of teachers working under Development of the lesson is further sub-divided in most effective organisational climates of residential and seven specific skills viz., explanation, communication, non residential schools has been compared. The table 1 questioning, response management, reinforcement, use presents means, SD's and t values for the teachers of chalkboard, and class management. It is a five-point working under residential and non residential schools. scale ranging from '5' for 'very effective to '1' 'least These mean scores have also been represented in fig. 1effective for positive item and vice-versa.

Table 1 t values of Teaching Effectiveness and its Aspects for Teachers working in Most Effective Organisational Climates with respect to Residential and Non Residential Schools


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A glance at table 1 indicates that mean scores of teaching significant at 0.01. level. in the context of mean scores, effectiveness in most effective organisational climates of it can be interpreted that the teaching effectiveness of residential schools 289.14 in while corresponding score teachers working in most effective organisational in most effective organisational climates of non climates of residential schools are better than their residential schools is 259.18. t value is 2.86 which is counterparts.

Fig. 1 Mean scores of Teaching Effectiveness and its Aspects for Teachers working in Most Effective Organisational Climate of Residential & Non Residential Schools


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Teaching effectiveness consists of five dimensions i.e. (2000) which established that there was a significant review of home assignments, introduction of lesson, correlation between the organisational climate and development of lesson, ending of lesson and classroom teachers' job satisfaction. Suman Lata (2005) had also climate development of lesson further has seven sub found in her study that students' attainment levels had aspects i.e. explanation, communication, questioning, significant correlations with type of organisational response management, reinforcement, use of chalkboard climates found in their respective schools. Although the and other & class management.. In all these aspects, t investigators could not detect any such study which has values have been found to be significant in favour of been conducted on the organisational climates of residential schools. This finding establishes that the residential and non residential schools but the strong teachers of residential schools are found to be more relationship between organisational climate and other effective in all the aspects of teaching effectiveness. variables proves the rationale of the findings of the These teachers not only review the home assignments of present study. the students in a better way but they also develop their Comparison of Teaching Effectiveness and its aspects lessons more effectively. Their explanation, for teachers working in least effective Organisational communication, use of chalkboard etc. are more Climates with respect to Residential and Non effective than their counterparts working even in Residential Schoolseffective organisational climates of non residential

Here, teaching effectiveness of teachers working under schools. This finding seems strongly supporting the case least effective organisational climates of residential and of residential schools and old Gurukul system in which non residential schools has been compared. The effectiveness of teachers can be conspicuously higher following table 2 presents means, SD's and t values of and teachers of such school systems can play a more teachers working under two types of schools. These effective role in the nation building process.These mean scores have also been represented in fig. 2.findings are in agreement with the study of Brown

Table 2 t values of Teaching Effectiveness and its Aspects for Teachers working in Least Effective Organisational Climates with respect to Residential and Non Residential Schools


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Table 2 reveals that the t value 8.93 for the mean scores residential schools it is bound to have disastrous impact (206.17& 226.66) of teaching effectiveness of teachers on teaching effectiveness and students' achievement. working under least effective organisational climates of As regards to the different aspects of teaching residential schools and non residential schools effectiveness, aspects like review of home assignments, respectively is significant at 0.01 level. Difference in introduction of lesson, communication, questioning, teaching effectiveness scores in least effective response management, reinforcement, class organisational climate of residential schools and non management, ending of lesson and classroom climate residential schools also indicates that if the have higher mean scores in non residential school while organisational climates is not effective in residential score of explanation is higher in residential school as an schools, this may be highly counterproductive while in exception. This may be due to individual reasons related non residential schools it may not be that harmful in to the competencies and demographic variables among terms of its impact on teaching effectiveness. Plausible teachers. These findings are supported by the study of explanation for this situation may be that in non Gupta & Jain (2007) who showed that overall teaching residential schools, if the organizational climate is not effectiveness scores were in strong agreement with effective that can be compensated by other scores of different aspects of teaching effectiveness psychological and sociological factors existing in the when she compared teachers of govt. and private surrounding of their respective teachers and they can schools. These findings are in partial agreement the manage to maintain their teaching effectiveness at some studies of Varsheneya (1981) and Saikia & Goswami reasonable levels. But this may not be true in case of (2010) who established that open and autonomous residential schools. If the climate deteriorates in climates were more favourable for teaching

Fig. 2: Mean scores of Teaching Effectiveness and its aspects for teachers working in Least Effective Organisational Climates of Residential and Non Residential Schools


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Kong: effectiveness.• Gupta, B.D. (1988), Intelligence, adjustment and personality Findings of the Study

needs of effective teacher in science and arts. Ph. D. Thesis, Agra University in fifth survey of educational research, Vol. 11: 883.• Within most effective climate, there was a

significant difference in teaching effectiveness of • Gupta M. & Jain R., (2007) A comparative study of Teaching-effectiveness of govt. and private school teachers trained through teachers working in residential and non formal and distance modes. Indian journal of distance education residential schools. Teaching effectiveness was Vol IX 2007 p.p. 61-75.

found better in most effective organisational • Hopkins, D. (2000), Powerful learning, powerful teachers and

climates of residential schools. powerful schools, Journal of educational change, 1, pp 135-154.

• Within most effective organisational climate, all • Joseph, Bella (2013) Teacher effectiveness and professional competency among higher secondary school teachers in the eleven aspects of teaching effectiveness were Kottayam district, Kerala Ph.D. thesis in education, Andhra found to be better in residential schools.University, Vishakhapattnam.

• Within least effective organisational climate, a •

significant difference was found in the teaching effectiveness of residential and non residential schools. Non residential school teachers showed • Lieberman, A. & Miller, L. (1999), Teachers transforming

world and their work, NY: Teachers college press. better teaching effectiveness in the segment of least effective organisational climate. • Natarajan, R. and C. Dhandepani (2002) Organizational

climate and job satisfaction of teachers in schools. Recent • Within least effective organisational climate, one researches in education and psychology, Vol. 7(I-II).

aspect i.e. use of chalkboard was found to be • Pipho, C. (2000), A new reform model for teachers and teaching,

better in residential schools. In all other ten Phi delta kappan, 81 (6), pp 421-422. aspects teachers of non residential schools

• Riti (2012) Teacher effectiveness in relation to school showed better teaching effectiveness organizational climate and administrative behaviour of school

heads of Himachal Pradesh Ph.D. Thesis in education, Punjabi Educational ImplicationsUniversity, Patiala.

The present study has established that teaching • Samantraya J. (2001) Professional responsibilities among effectiveness is affected by the organisational climates senior secondary school teachers in relation to instructional

management behaviour and school organizational climate. Ph.D of institutions. Most effective organisational climates Thesis in education, Kurukshetra University. make the teaching effectiveness better while least

• Saikia, L.R. and Goswami, M. (2010) Teacher freezingness effective climate lowers teaching effectiveness. Type of among secondary school teachers in relation to school school has also a significant influence on various aspects organizational climate. Indian journal of psychometry and

of teaching effectiveness. We are living in a time in education, 41(1), 5 -11.which quality of teaching in our institutions is becoming

• Sergiovanni, T. J. (2000), The lifeworld of leadership: creating an issue of central importance. In such times, all the stake culture, community and personal meaning in our schools, San holders of the system of education in any type of school Francisco: Jossey-Bass.

need to plan all those strategies which can make the • Sodhi, B. (2012) Teacher effectiveness of secondary school teachers of punjab in relation to school organizational climate climates of organisations more effective so that desired Ph.D. in education, Punjabi University, Patialachanges can be brought in the teaching effectiveness of

•teachers working in the institutions.

References

• Brown, O.M. (2001) To determine the relationship between • Varshneya, P.K. (1981) A study of relationship between organizational climate and job satisfaction in the clerk country organizational environment and teacher effectiveness. Ph.D. in schools. Education department, University of Nevada, LAS education, Banaras Hindu university in third survey of research in VEGAS. education.

• Cheng, Y.C. (1999), The pursuit of school effectiveness, Hong

Kagathala, A. B, (2002). A study of the effectiveness of teacher of secondary school in Gujarat. Journal of education and psychology. 59 & 60 (3&4), 26-33.

Sumanlata (2005). A study of educational attainment as a function of school organizational climate. Recent researches in education and psychology. 10 (III-IV), 100-103.

*Research Scholar, University of Jammu**Assistant Professor at affiliate college of G.G.S.I.P. University.


Organizational Strategies For Designing Effective Viral Marketing Campaigns For Competitive Advantage

Tripti Bajpai Toor* Sonia Goswami**

Introduction marketing as “marketing techniques that seek to exploit pre-existing social networks to produce exponential The concept of viral marketing is not new. Word-of-increases in brand awareness, through viral processes mouth marketing, viral's forefather, has been existing for similar to the spread of an epidemic. It is word-of-mouth ages. The principle behind word-of-mouth marketing is delivered and enhanced online; it harnesses the network simple; use influencers to generate peer-to peer product effect of the Internet and can be very useful in reaching a recommendations or buzz. The Internet has radically large number of people rapidly. changed the concept of word-of-mouth, so much so that

the term “viral marketing” was coined by venture The objectives of the study :capitalist Steve Jurvetson in 1997. The assumption • To study the concept of viral marketing by behind the term is that if such an advertisement reaches a exploring the various reasons behind the success “susceptible” user, that user will become “infected” (i.e., of two viral videos, “Gangnam Style” and sign up for an account) and can then go on to infect other “Kolaveri Di”.susceptible users. The spread of an effective viral

• To prepare and compare the case studies of viral marketing campaign is akin to an epidemic outbreak of a marketing of “Gangnam Style” and “Kolaveri virus, limited only by the potency and relevance of the Di” for identifying various reasons that made marketing message. The Wikipedia defines viral

ABSTRACT

Viral marketing is a form of peer-to-peer communication in which individuals are encouraged to pass on promotional messages within their social networks. Viral marketing is emerging as an essential tool for organizations to reach millions of web users through various online communities. Viral marketing can provide competitive advantage to an organization as it is a low cost form of marketing. The greatest strength of viral marketing lies in its capability to reach far and spread fast. This research concerns the phenomenon of viral marketing, explores the existing literature on viral marketing and current trends in viral marketing. Specifically this research paper focuses on formulating strategies for designing effective and successful viral marketing campaigns and analyses and compares the case studies of two most successful viral video campaigns namely “Gangnam style” and “Kolaveri di”. In addition to suggesting viral marketing strategies, this research is concerned with clarifying the role of viral communications within the broader scope of integrated marketing communications. Along with it, the aim of this research paper is also to understand the possible ways of measuring and evaluating successfulness of a viral marketing campaign, through a comparative study of “Kolaveri Di” and “Gangnam Style” viral campaigns. Findings suggest that any online content has the potential to go viral provided that it is audience relevant and that the proper viral mechanisms are in place. Three types of content are identified which increase the likelihood of a video going viral and those include: entertainment (fun, dance, music, humor, and uniqueness), positive message and Global appeal of content. While it is impossible to predict which video will go viral, organizations can employ strategies for online viral marketing campaigns that can not only enhance the chances of a video to go viral, but can also easily spread the organization's message through online communities like Facebook, Twitter and YouTube etc. in a very short span of time. Marketers seeking to optimize viral marketing campaigns performance should give consideration to these findings before designing and implementing viral marketing campaigns so that they can achieve an edge over their competitors.

Keywords: Viral marketing, organizational strategies, video content, social networks, YouTube, online marketing, social media, online communities.

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(This paper is declared as best paper in the International Seminar held in April 2013 at Galaxy Global Group of Institutions)

Vol 3, Issue II, July-Dec. 2013 ISSN 2249-4103 GGGI Management Review A Bi-annual Refereed International Research Journa

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these videos to go viral. The Researchers have spread through e-mail, as an early example of a viral evaluated various media channels and video. The interconnectivity with internet is a global promotional strategies which were used to phenomenon that facilitates the dissemination of both promote these videos. positive and negative word-of-mouth (Shankar, Smith,

& Rangaswamy, 2003). However, marketers have noted • Based on the case study of “Gangnam Style” and the customer-leveraging possibilities the Internet offers “Kolaveri Di” viral videos, researchers have (Brodin, 2000) among which viral marketing is amongst formulated strategies so that marketers can take the most intriguing. The goal of viral marketing is to use advantage of the viral marketing to gain c o n s u m e r - t o - c o n s u m e r ( o r p e e r - t o - p e e r ) competitive advantage.communications—as opposed to company-to-consumer

Literature Review: communications—to disseminate information about a product or service, thereby leading to more rapid and Viral marketing is using the Internet as a social network cost effective adoption by the market (Krishnamurthy, to promote a product or company through a web site, 2001). Previously, a few in depth studies have shown that video, game or other message spread by Internet users. social networks affect the adoption of individual The idea of a viral situation is that when a user sees the innovations and products (Rogers, 1995) and (David message, he or she will pass it along to his or her friends Starng and Sarah A. Soule, 1998). There needs to be a through online communication or verbal word of mouth; greater understanding of the contexts in which viral the message spreads like a virus and its goal is to “infect” marketing strategy works and the characteristics of as many users as possible (Lodish, Morgan, & products and services for which it is most effective Archambeau, 2007). One classic paper is that by (Mani R. Subrahmani and Balaji Rajagoplan, Milgram (1967), which estimated that every person in 2003).Hotmail spent a mere $50,000 on traditional the world is only six acquaintances away from every marketing and still grew from zero to 12 million users in other. Schwartz and Wood (1993) mined social 18 months (S. Jurvetson,2000). The Hotmail user base relationships from email logs; the Referral Web project grew faster than any media company in history – faster mined a social network from a wide variety of publicly-than CNN, faster than AOL, even faster than Seinfeld's available online information (H. Kautz, B. Selman and audience. By mid-2000, Hotmail had over 66 million M. Shah, 1997). Krackhardt (1996) proposes a model for users with 270,000 new accounts being established each optimizing which customers to offer a free sample of a day (Po Bronson, 1998). A Lucid Marketing survey product to, but the model only considers the impact on found that 68% of individuals consulted friends and the customer's immediate friends, assumes the relevant relatives before purchasing home electronics – more probabilities are the same for all customers, and is only than the half who used search engines to find product applied to a made-up network with seven nodes. Yet it is information (Kevin burke, 2003).Social networks can be difficult to identify substantial evidence to support these composed by using various information, i.e. geographic assumptions or to explain why and how viral marketing similarity, age, similar interests and so on (Yang and works, which is perhaps why it is currently viewed as Allenby,2003) showed that the geographically defined more of an art than a science (Diorio, 2001). Viral network of consumers is more useful than the marketing has become an increasingly popular demographic network for explaining consumer behavior promotional tool (Kirsner 2005; Walker 2004).Viral in purchasing Japanese cars. A recent study by Hill et al. marketing usually encourages users to interact with an (2006) found that adding network information, advertisement in order to capture consumers' attention in specifically whether a potential customer was already a time when they are able to choose what advertisements “talking to” an existing customer, was predictive of the they want to see and when (Howard, 2005). Advertising chances of adoption of a new phone service option. Age reported that viral campaigns average 35% of their Frenzen and Nakamoto (1993) surveyed a group of total viewer ship in their first week, experience 20% people and found that the stronger the moral hazard growth in the next two weeks, and finally settle into a presented by the information, the stronger the ties must steady 10% rate in subsequent weeks (Cutler, 2009). be to foster information propagation. Bowman and David Meerman Scott (2007) cited the “dancing baby,”


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Narayandas, (2001) found that self-reported loyal into question by Van den Bulte and Lilien 2001). Finally, customers were more likely to talk to others about the Goldenberg, Han, Lehmann, and Hong (2009) products when they were dissatisfied, but interestingly empirically show that individuals who are highly central not more likely when they were satisfied. Quantitative in a social network (i.e., have a large number of marketing techniques have been proposed (Alan L. connections) are critical for accelerating the diffusion of Montgomery, 2001) to describe product information innovation over this network. Stephen and Lehmann flow online, and the rating of products and merchants has (2009) show experimentally that transmitters of WOM been shown to affect the likelihood of an item being take into account how likely a given recipient is to listen bought (Paul Resnick and Richard Zeckhauser 2002; to them before deciding whether or not to share product-Judith chevalier and Dina Mayzlin 2006). Richardson related information with that person. A report from the and Domingos (2002) used Epinions' trusted reviewer Keller Fay Group that 90% of WOM takes place offline network to construct an algorithm to maximize viral (Keller and Fay 2009). marketing efficiency assuming that individuals' The main limitation of viral marketing is that it risks probability of purchasing a product depends on the making the company look bad to the customers if the opinions on the trusted peers in their network. Holme viral content looks too “fake,” forced, or similar to a and Newman, (2006) introduced a model where conventional advertisement (Scott, 2007).At times, viral individuals' preferences are shaped by their social ads have given a company negative press because the networks, but their choices of whom to include in their company had its name attached to an ad, but was not social network are also influenced by their preferences. aware of the ad's content. In early 2005, a British Godes and Mayzlin (2009) used a large-scale field test to boutique agency called Lee and Dan made a fake study how characteristics of WOM transmitters and their commercial to send to Volkswagen in which a terrorist recipients (specifically, whether transmitters are loyal or tried to set off a car bomb inside a Volkswagen Polo, but less loyal customers of a restaurant, and whether failed because the car was so sturdy (Batler & Butman, recipients are their friends or acquaintances) are related 2005). Volkswagen immediately received bad publicity to the effectiveness of WOM in a viral marketing for using terrorism in the ad, and its reputation was campaign. De Bruyn and Lilien (2008) developed a damaged until Lee and Dan admitted that it made the model to identify the role that WOM plays during each video. Due to its nature of trying to create immediate stage of a viral marketing recipient's decision-making buzz among consumers, viral marketing is scheduled at process. Biyalogorsky, Gerstner and Libai (2001) least fairly close to the release of the product. The viral studied customer referral programs theoretically and campaign for Cloverfield, released in January 2008, identify conditions under which they should be used. began in July 2007 at the release of Transformers Van der Lans, van Bruggen, Eliashberg and Wierenga (Brodesser-Akner, 2008). Similarly, the campaign for (2009) propose a branching model for predicting the The Dark Knight, released in July 2008, began in May spread of online WOM. Iyengar, Van den Bulte and 2007 (Collier, 2007). Burger King's Subservient Valente (2009) study how the degree to which a customer Chicken interactive site used to promote its Tendercrisp influences other customers varies with his or her position Chicken Sandwiches was launched only a few weeks in the social network. Given that WOM can have positive before the sandwiches started being sold at the effects on aggregate marketing outcomes (Chevalier and restaurants (Batler & Butman, 2005). The Subservient Mayzlin 2006; Godes and Mayzlin 2004) the first two Chicken campaign amassed tens of millions of web hits items, which capture the number of social connections a (Terdiman, 2005). member has and how “social” he or she is, were part of

Viral Marketing of “Kolaveri di”-A case analysisthe “network breadth” scale proposed in an earlier version of Godes and Mayzlin (2009). Some justification Viral symptoms of “Kolaveri di” song:for this argument may be traced back to Coleman, Katz,

A down tempo dance gaana-ballad song, "Why This and Menzel (1957), who showed that physicians with

Kolaveri Di" is a "genre bending" song, built around an high connectivity in their social networks play a critical

ancient South Indian folk rhythm. The vocals utilize the role in diffusion (although this finding has been brought


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singing style of Tamil folk culture. Lyrically, the song to Social Hues, the rate of Twitter mentions of Kolaveri revolves around the film's main protagonist being increased by nearly 200% every day, starting at 179 and dumped by his girlfriend; the song is sung by the peaking a week later at 14,907 tweets on 24 character in a drunken state, with many of the lines November—the day after it became the first Tamil film nonsensical. In the midnight of 18 November, 2011 it song to be played on MTV. In Kolaveri's case most traffic was detected that, Kolaveri virus spread through human was driven by Facebook, which accounted for nearly souls irrespective of age, sex and language. Most of the 80% of social media mentions of the song, followed by victims were observed humming 'Kolaveri.. Kolaveri.. Twitter and YouTube, according to Social Hues. Sony Kolaveri..” Virus was injected though social media became a content partner with YouTube, on 30 targeting all youth with no language barrier. Virus November. Since then, Sony took 50% of the revenue remained active for a long time. It contaminated Indian generated by the YouTube. blood. General symptoms were indulgent and warm Jack in the Box was the digital agency responsible for feeling kindled in the heart. Infected patients were making the video go viral. According to Ninja Magic.in, humming “Kolaveri Kolaveri” continuously. The song the company aimed to market the video on YouTube, became an earworm of the nation. Facebook & Twitter. The company managed to market Role of Facebook, Twitter and YouTube in making the video on Facebook. Sony Music India's South page the “Kolaveri di” video go viral- had about 200k fans. And most of them were Tamils. So,

posting about the video on Facebook page attracted This Song was officially released on 18 November, 2011 viewers, comments, likes & shares. In turn, YouTube but the social media explosion supposedly started when views of the video started going up. The video was a rough version of the song was leaked on YouTube and marketed on Twitter and fans were sharing it on became an Internet phenomenon in just a few days. Then Facebook. The marketers of John in the Box created it did spread like a fire through social networking sites. #why this Kolaveri di hash tag and started posting quirky Within first week of release, it received 1.3 million views lines like "Iceland has not heard #why this kolaveri di", on YouTube, more than 1 million shares on Facebook. "Not called for 2 days #why this Kolaveri di", etc., with On 30th November, Song crossed 10 crore hits on the YouTube link to the video. This intrigued people on YouTube. This song received more than 50 million views twitter who didn't understand what “Kolaveri di” meant. on YouTube. According to social media analytics firm So these people started asking questions & clicking the Social Hues, the song was being talked about up to two YouTube link. After the video went viral on Twitter, weeks before the video appeared on YouTube on 18 users were talking about Kolaveri Di via #Kolaveri hash November. A fan from Chennai, with the Twitter handle tag. The topic trended for more than 3 days on Twitter @arundanush, alerted both Dhanush's sister-in-law India. Apart from the gob smacking popularity of the Geetanjali Selvaraghavan and the composer of the song, “Kolaveri” song just by a simple upload on YouTube, it is Anirudh, to the fact that the song had been uploaded to also marked one of India's first super successful viral YouTube on 31 October. His tweet, which read marketing campaign. Neither the song had great tune or a “Kolaveri song from 3 again uploaded in YouTube, pls great voice nor sensible lyrics, still “Kolaveri di” inform Dhanush”, suggested it was not the first time such encouraged listeners to pass on the marketing message to a leak had taken place. Over the next few days, people others, creating the potential for exponential growth in began tweeting about the lyrics of the song and other the song's exposure and influence. Like viruses, it took details of the film. The publicity was global. Between 1 advantage of rapid multiplication to explode the and 10 November (even before the official launch of the message to thousands; to millions. The song managed to song), there were 43,800 mentions of Kolaveri in the turn a spark into a massive fire. US, 7,000 in France and 4,000 from the UAE. Sony

Music India was quick to capitalize on it and turned it Reasons behind popularity of “Kolaveri Di” video at into a marketing advantage. The team had been posting National and International level-the song on Tamil, Hindi and international Facebook (1) The magical lyrics of the song and new pages to drive traffic. From 16 November on, according refreshing sound: “The 'Tanglish' song with


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quirky, improvised lyrics went viral and got more movie marketing was well strategized with than 50 million hits on the official page. The song involvement of Social Media from day 1. The is light hearted fun song about love failure, sung in recording of the video at the studio with natural funny, broken English and some amount of movements and expressions itself for the sake of musicality. promoting it on YouTube proves the efforts. Along

with its social media agency, Jack in the Box; (2) Love song: The song was supposedly sung by a Sony Music India marketed the song in phases. person who had been unlucky in love. Most people The song was first showcased for a Tamil audience in their lives face this particular scenario hence and was then gradually taken to national and could easily associate with the song. "Kolaveri international levels. The song was posted on Sony Di", a Tamil phrase, literally means 'Why this rage Music south pages on Facebook as well as on towards me, girl'.Twitter which were followed by lakhs of people.

(3) Blend of two Languages- . The blend of two After the song showed signs of gaining languages along with the funky music is what did momentum, Sony music launched it on Sony wonders for the number. The song became a hit Music India and international pages. In fact the without having any element of glamour, adoption video of the song, which was shot overnight by of a new concept that transcends the language Sony Music India, was specially targeted at the boundary and the audience accepting an online networking sites. The team decided to experiment that's different from the traditional introduce sub-titles to make it accessible for the genre of music. The lyrics of the song are in non-Tamil masses. Indeed, mobile value-added English (mostly) sung in tamil style thus making service provider, Techzone, which did hold the this understandable worldwide. exclusive rights for music tracks, videos and

digital entertainment formats for the 'Kolaveri' (4) Shared by fans on social medias-The most movie 3, saw a “phenomenal” number of common version of intentional viral marketing subscriptions, downloads and 'live-in' requests. occurs when consumers willingly become Techzone reportedly saw 22,000 download of the promoters of a product or service and spread the song in the first five days. word to their friends; they are driven to do so

either through an explicit incentive (e.g., financial (6) Celebrity presence in the song: The song was incentives, need to create network externalities) or sung by Dhanush, who is son-in-law of simply out of a desire to share the product benefits RajaniKant. The movie “3” was directed by with friends (e.g., fun, intriguing, valuable for RajaniKant's daughter Aishwarya Ranajikant. others).That what happened in Kolaveri di video. Shruti Hassan happens to be co-star with Dhanush Tamil movie fanatics (mostly male) and non- in the move “3”. She is the daughter of Kamal resident Indians drove most of the traffic in the US Hassan and classical dancer. and the Gulf, and students studying abroad made

(7) Applauded by other stars on Twitter: The song up the majority of mentions in Europe.was shared on social networks by hundreds, and

(5) Excellent promotional strategies by Sony found fans among Bollywood celebrities. Some of Music and Techzone: The song was shared on the celebrities on popular channels who added Twitter, Facebook and other networks like rapid value to the song promotion making it to reach fire. This is one of the smartest word of mouth their thousands of followers were: Amitabh marketing strategies adapted by movie makers Bachchan, Karan Johar, Bipasha Basu , Shahid and the song became sensational, conversational Kapoor, Shreya Ghoshal, Vivek Oberoi, R. track on Twitter, Facebook, and Traditional Media Madhavan and many more. and beyond. As per Youtube's Trend Dash Board

(8) Novelty of the word 'Kolaveri Di' and humor Kolaveri song had been trending in the top 10 in element- Twelve per cent of all conversations on US and number one in India for many days. This Kolaveri were about the meaning of the word, was first tamil song to be aired on MTV. The


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generally translated as murderous rage. By typing catching” bright flashy colors were attractive to both Kolaveri Di on YouTube one can get over 30 adults and kids. The video also mixed in some high versions inspired from the original. The song is profile characters, including a dancing boy from a well-humorous and evokes laughter and emotions known South Korean show and two popular South among the audience. Korean entertainers/comedians, in addition to Psy's

previous success in the South Korean music scene. (9) Popularity among youth: Given that, India is a young country with 35% of the population less Role of Facebook, Twitter and YouTube in making than 28 years of age, anything that caters to the the “Gangnam Style” video go viral-young tastes, is bound to go viral. Statistics of This video debuted on July 15, 2012. By September 20th whether 25% or 35% of the population is young it received the most likes of any YouTube video, can be debatable, but what is no longer debatable, according to Guinness World Records. The media push is the fact that the likes and dislikes of the youth began just before the video was launched, with two cannot be ignored. Every kid below the age of 20 tweets from @allKpop (associated with American had an opinion about Kolevari di, every minute AllkPop.com, a site focused on celebrity and music there was an opinion being generated and gossip in the Korean music industry). The first day it circulated on the Facebook status bar about this launched – July 15, 2012 – the YouTube video received song. The attention the song received on the social over 500,000 views and debuted at #1 on the Korean media was solely responsible for it being such a music charts. It wasn't picked up outside Korea until later humungous hit. It was being called the Youth July, with an article in Gizmodo (July 26) and Telegraaf Anthem. Google is full of information on Kolaveri in Holland (July 27).The next big push came via Gawker, di and Twitter was full of thumbs ups for the song. which wrote a story on the song and video that generated

(10) Coverage by National and International 19, 00 Facebook Likes/Shares for the article (July 30) Media- International Time Magazine, Huffington which was followed by articles in Billboard, Huffington Post and BBC published report of this song. 'Why Post, and TV news pieces from CNN and Sky News. The This Kolaveri Di': India's Latest Viral Hit, The spike in traffic and views of the video caused YouTube Huffington Post reported. The song reached Trends to write a post on “Gangnam Style”, making it YouTube hall of fame. London radio presenters their Video of the Month in terms of views and likes. Sunny and Shay raved about the novel lyrics to the Celebrity support via tweets, from the likes of Katy Perry song on air when they broadcast it on BBC Radio and Josh Grogan, came much later into the campaign, but 94.9 on 26 November. Soon, the song became the when they did they gave a further push in the video most searched YouTube video in India and an views. In addition, YG Entertainment's (the media internet phenomenon across Asia. Within a few agency behind the song) seeding platform, pre-weeks, YouTube honored the video with a Gangnam, had around 2.5 million subscribers to its Recently Most Popular Gold Medal Award for various YouTube channels and had achieved in the receiving number of hits in a short time. As per a region of 1.6 billion views of musicians' videos across report by CNN, “Kolaveri Di” was the most those channels. Its main artists also, as is expected, had downloaded song of the year and if one proceeds Twitter accounts, mainly being used to push information to type just "why" on YouTube the first option that to high follower numbers. These seeding platforms were the sight flashes is the song. vital to its efforts. YG knew that its YouTube subscriber

numbers alone would mean that it would get high Viral Marketing of “Gangnam Style”-ACase volumes of views from day one.AnalysisThe very final peak was when Guinness World Records South Korean rapper Psy's music video “Gangnam issued a release relating to Psy breaking all known Style” became a viral phenomenon across the globe, records for the number of views that the video has had. racking up video views and spurring remakes, parodies On September 20th, 2012 Guinness World Records and dance performances worldwide. The dance and “eye announced that “Gangnam Style” had the most “likes”


186

on YouTube ever. (5) Loss of Control: This is the "scary element". Millions of entrepreneurs around the world Reasons behind the popularity of “Gangnam style” regularly face this possibility and get scared about video-Numerous elements explain Gangnam Style's losing control. What PSY did with Gangnam success. Separately, those elements might not explain Style was to give up his copyrights for this such success. All together, the concept becomes viral and specific song. The result was incredible: within captivates the entire world. Some of the reasons include- two weeks, over a thousand videos having the

(1) A local celebrity: PSY is a South Korean rap word "Gangnam" in their title have been uploaded singer, very popular in his country. As he lived in on YouTube. By taking this direction, PSY took a the US for about four years, he also developed a real risk: his video could have been mocked or special link with this country, even though he used against him to tarnish his image but he took wasn't famous there. The first winning element the risk because as long as the marketers keep for PSY was to have, for over 10 years, a local fan control on the content, it can't go viral.base.

(6) Marketing strategies of the video by YG (2) Fun Element-A different direction: If most Entertainment: The campaign was an organic hit

successful rap songs are based on suggestive with little false manipulation of reported traffic or dances, young half naked ladies, huge gold chains online mentions, and the video's popularity was and expensive cars, “Gangnam Style” decided to driven by a “well structured and meticulously take another direction. Indeed, in “Gangnam executed campaign” by YG Entertainment, the style” one will see the same suggestive dances and South Korean label company behind the song. the same gold chains, but in a parody. PSY takes The main reasons for success were three separate all those "clichés" and makes fun of it instead of elements of the video campaign: the set-up by YG taking them seriously.PSY involves the audience Entertainment, the song/video content itself and in the "horse dance", a ridiculous dance led by a the media push following the video's release. The rather chubby singer taking himself very seriously company also invested in organically growing an and followed by very "sexy ladies". The contrast engaged audience, so that when the right song between the American dream and this ridiculous came along, they had a large platform on which to parody is one of the main elements of Gangnam seed the campaign to ensure maximum exposure Style's success. and buzz.

(3) Participatory creation: This element remains (7) Laying the Groundwork for a Well-but it seems that PSY would have used a Orchestrated Campaign: YG Entertainment "participatory creation" system to come up with had a wider business goal of breaking into the US his "horse dance”. If fans feel "involved", if they and UK music industry, and had spent time have the feeling to "own" part of work, they will (before the release of Gangnam Style) setting up be even keener to promote this piece of art. Here is

an office in the US, and exploring partnerships another very interesting element contributing in

with artist William and record label Scooter the success of Gangnam Style: keep your

Braun. The record company had also “invested in customer involved and let him participate in the organically growing an engaged audience” with creation process.around 2.5 million subscribers to its YouTube

(4) Simplicity and symbols: PSY did not get rid of channels and nearly 1.6 billion views of music the symbols and "clichés" of rap in Gangnam videos. YG's main artists also had Twitter Style. He just mocked them. It was because of accounts to push information to high numbers of symbols that the people were able to appropriate followers. With these in place, the company had a and understand his work. But simplicity was built-in audience to start a viral campaign.another key behind the success.


187

(8) Sharable Content with Global appeal: The simplicity bring recognition and appropriation.song had the factors to become a “shareable” hit (9) Media Attention Fueled Traffic Spikes – And “across multiple genres, territories and sectors.” Led to Celebrity Tweets: While this bit of Language was not a barrier due to the “catchy international attention created a slight upswing in lyrics and punchy chorus.” Among the 600 views, things really got in motion when Gawker million viewers, few were those who could covered the song/video on July 30, followed by actually understood Korean. Luckily, PSY is also attention from Billboard, Huffington Post, CNN a great marketer: the music is filled with and Sky News. This coverage created a spike in "internationally understandable" keywords such traffic that led to a post about the video on as "style", "sexy", "lady", "baby"... and everyone YouTube Trends, and on August 7th it was named can sing along. That was another very important YouTube “Video of the Month” in terms of views element of Gangnam Style's success: symbols and and likes.

COMPARISON OF “KOLAVERI DI” AND “GANGNAM STYLE” VIRAL VIDEOS


188

Findings from the Comparison of these two viral theme of “Kolaveri di” made people filled with videos- love and hate, anger and compassion and

“Gangnam style” evokes laughter among From the above comparison it is quite evident that the audience.success of both of these viral videos can be attributed to

some common factors. Both of these songs have unique • Select a Target group and let it spread the lyrics and novel words were used which generated message. In the case of “Kolaveri di” the target curiosity among the audience. These videos had a blend group was tamil fans of Dhanush and they shared of two languages and two cultures which gave global videos on Facebook, Twitter, and YouTube. The appeal to both the videos as one of the language used is marketing team of “Gangnam Style” targeted English. Music is also different and unique with an Korean fans of Psy for the seeding network.element of humor in the song. While “kolaveri di” is • Plan ahead to capitalize the opportunities if the basically a love song, “Gangnam style” is a parody song virus multiplies rapidly. When the Kolaveri di with “horse dance” but both the videos entertain the song became popular, Sony music capitalized on it audience. Both the songs have celebrities and have been soon and started posting the song to Indian and excellently marketed by the concerned marketing International fans and became a content partner agencies on various social media platforms including with YouTube. Jack in Box and Techzone, the Facebook, Twitter and YouTube according to a other media partners also used creative marketing preplanned strategy. After the initial seed network was strategies. In case of “Gangnam Style” the same created, the videos were shared and forwarded by fans in strategies were adopted by YG Entertainment their social networks and gained popularity on various agency.online networks which made the videos an international

• Exploit the common motivators and behavior hit. Both these videos have been extremely popular of the users. People share for the sake of fun and among Youth and these videos were appreciated by other interest. In case of “Kolaveri di” and “Gangnam celebrities on social media and Twitter, which further Style” the common motivation exploited was the gave the boost to the popularity of the viral marketing enthusiasm of Tamil and Korean fans and their campaign. Once the videos became popular, they love for their language which made the Tanglish received coverage from national and international and Korean songs popular around the globe.media. These similarities between both these viral

marketing campaigns shows that the above elements are • The message to be passed to the customers vital to the success of a viral campaign thus marketers about a product or service should be effective can consider these elements while designing strategies and appealing. The videos, “Kolaveri di” and for viral marketing campaigns. “Gangnam Style” were simple but appealing with

an element of humor, music and dance into it.On the basis of the study of “Kolaveri di” and “Gangnam Style” viral videos, the following • Be prepared to trace the queries of your strategies can be considered by organizations to audience after target group spread the design effective online content for viral marketing information and stay connected to audience. campaigns The entire cast and crew of the movie '3' was

involved in the promotion and did stay connected Viral marketing can be useful for businesses as it incurs with the fans. Dhanush himself had conversations low cost, involves low risk and has the potential to with his fans on various social media channels in produce quick results. Organizations can use following his Tanglish style. Psy himself was closely strategies-associated with the promotion of the “Gangnam

• Viral marketing campaign must aim at making style” video.people feel emotional. Viral marketing is 100%

• Use new words in the promotional strategies or emotional. While “Kolaveri di” is a love song rather make it shocking. One can use the blend sung by a boy who has been rejected by his of two or more languages. In the case of Kolaveri girlfriend, “Gangnam style” is a parody song. The


189

song it was the novelty of word 'Kolaveri di' which respective marketing teams also used different made users curious and twelve percent of all blogs and forums. conversations on social medias were regarding the • Generate opportunities to be in news. “Kolaveri meaning of word 'Kolaveri' itself. Listeners had no di” and “Gangnam style” video's popularity made choice but to investigate the meaning further. these videos in the news for a long time. “Kolaveri “Gangnam Style” also had Korean words which di” was the first tamil song to be aired on MTV, were new to the global audience and generated first Indian song to enter 'Hitler gets angry series', curiosity. Both the videos have a blend of two and to enter in YouTube hall of fame. National and languages which made them globally International media like CNN, BBC, Huffington, understandable. Times magazine posted report on the song.

• “Gangnam Style” is the first South Korean video unique as it featured the cast members in the to gain this much popularity and it made entry into shooting of the song with all the celebrities Guiness Book of world records to get maximum involved in the production of the song. hits on YouTube.“Gangnam style” has unique steps of horse Conclusiondance which amused audience.)

Viral marketing is a recession proof form of marketing as • Design your video for remixing. “Kolaveri di” a business organization need not pay huge amount of

video was simple enough to be remixed over and money for making a viral marketing campaign over again thus many versions of the song were successful, thus reducing the cost burden of the created in a short time. “Gangnam Style” also has organizations. The “Kolaveri di” song got international been remixed and produced in various languages media coverage thus no doubt, it has contributed and versions.. significantly to improve India's image on international

• Create controversy and conversation. A great front. The results of this research paper and the way to maximize the number of people watching comparative study of “Kolaveri di” and “Gangnam the video is to create a sort of conversation or Style” viral videos will inspire marketers to adopt new controversy in the section below the video. Leak and creative forms of marketing and promotional of the Kolaveri video on Youtube before its strategies. In order to make a viral marketing campaign official launch created controversy and successful, marketers need to recognize that customers conversations on the meaning of word Kolaveri are an additional sales channel, a lead-generating generated interest among users. channel, and an awareness-generating channel. Viral

marketing is a powerful way to enlist customers in a • Use strategic tagging. YouTube allows marketers marketing strategy, and when applied correctly, can to tag videos with keywords that make videos boost sales for the right product and speed the transition show up in relevant searches. “Kolaveri di” and from the stage of early adoption to widespread use. “Gangnam style” marketing team made effective Marketers must motivate audience to pass along the use of tags to control the videos that show up in the marketing message. Marketers must make it easy for Related Video's box.audience to participate in the marketing campaign. Thus,

• Facilitate easy transfer of message-Provide the viral marketing can help an organization in achieving opportunity to effortlessly transfer the videos and competitive advantage even in turbulent times.other information to friends. “Kolaveri di” and

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*Professor Department of Tourism & Hotel Management Kurukshetra University, Kurukshetra -136119**Assistant Professor University Institute of Hotel Management & Tourism Panjab University, Chandigarh


Relationship between Marketing Practices and Business Performance: A Study of Selected Hotels in Delhi

S.S Boora* Ms.Tanvi**

Introduction developed in connection with the physical products, but with the growing interest in consumers for services During the past decades, globalization has influenced today, selling services have become an increasingly into the Hospitality and Tourism sector considerability. important component of the marketing concept. Today, As a result of this, competition in the hotel industry has more than ever, marketing has put emphasis on become fiercer. This is why the marketing effectiveness satisfying the customer needs. Where marketing mix is in the sense of impacts of marketing practices on one of the major contributors in modern marketing and business performance of the hotel industry has become a is often brought up in general discussions of marketing. central point of research. The fact that marketing Marketing mix is a set of marketing tools that a company functions provide an answer to the question of how to uses to pursue its marketing objectives to achieve better attract guests under these conditions of ever growing business performance. These tools include the product, competition gives rise to a thesis that marketing place, promotion, price, people, packing and effectiveness, to a large extent, determines the overall partnership.market effectiveness of the hotel industry. Marketing

effectiveness depends on the ability to implement The above mentioned marketing mix are used by marketing plans successfully at various levels of an Hospitality industry in a specific manner to achieve its organization. As American Marketing Association organisation objectives and targets. Similarly this (2008), also refers marketing to “an organizational research paper is also about analysing marketing function and a set of processes for creating, practices followed by the hotels by making the best use communicating, and delivering value to customers and of marketing mix that will also help in increasing for managing customer relationships in ways that benefit business performance.the organization and its stakeholders.” It has been Review of literaturerealised that Hospitality marketing is unique because it

Recent hotel industry related research Capiez and Kaya deals with the tangible product, like a bed in the hotel or (2004) has examined the impact of customer satisfaction food in the restaurant, but it also deals with the intangible on hotel performance in Africa Hotel industry. Also Pan aspects of the hospitality industry. So, the combine effect (2005) mentioned in his research the impact of market of tangible and intangible service is encouraging the structure and location on profitability of Taiwanese hospitality industry to focus more on marketing concept hotels. Moving ahead Sin et al (2006) analyse the effects and practices. That's why marketing was initially

ABSTRACT

The increasing competition environments have put pressure on hospitality Industry to pay attention on gaining competitive advantage by adopting marketing practices that will help in attracting customer and improving Business performance. This paper provides an insight into the relationship between adopting Marketing practices and the business performance of selected hotels in Delhi. The findings of a survey on hotels of Delhi region has suggested that many practices like Integrated marketing with front office, Identifying profitable customers, etc. play their role in improvement of business performance but the major role is played by Customer interaction in the form of individual customer help that has contributed in increases the revenue.

Key Words: Marketing Practices, Business Performance, Hospitality Industry

191


192

of relationship marketing orientation on business Cerdan & Soto-Acosta (2007). Similarly Hashim et al performance in Hong Kong hotels. Similarly Wang et al (2010) felt the rapid adoption of Internet marketing by (2011) also observe the relationships among total quality hotels has yielded myriad studies of hospitality, Internet management, market orientation and the exploration of adoption and its impact on hotel operation. It has been the use of new performance measurement techniques in analysed that website marketing is particularly useful for an international hotel chain (Cruz, 2007) ,Claver- dealing with intangible nature of the hotel service and to Cortés et al. (2007) also studied the hotel performance gain a competitive advantage (Baloglu & Pekcan, in Chinese hotels and the impact of strategy on hotel 2006).performance in Spain. All be above mention research So, the marketing strategy which are formed to make are highlighting that there is always been seen the effect various marketing practices which has influenced the of marketing practices on business performance of business performance are studied by many researcher at various hotels of different countries. various phase of time.In continuation Sainaghi (2010) provides a literature Objectivereview of 20 years of research relating to hotel

(i) To study the Marketing practices adopted by performance using the balanced scorecard as a model to hotels in Delhi.summarise the main research areas of customer

perspective, strategy and process perspective and (ii) To analysis the relationship of adopting marketing according to the main functional areas of strategy, practices on Business Performance of Hotels in production, marketing and organisation. Pan (2005) also Delhifound positive relationships between hotel performance

Research Methodolgyand external macroeconomic factors of market

The Primary objective is to define the relationship concentration particularly relevant to this study, market between marketing practices and business performance orientation has been found to have a strong positive of the hotel in Delhi Region. Business Performance will relationship with hotel performance felt by Sin et al. be covering all the different aspect in this study.For this (2005), Cizmar and Weber (2000) and Gu and Ryan purpose a sample from 30 hotels are taken and the (2008). number of respondents was 40 who were the manger in

Hotel performance is also improving with the recent these hotels. The sample is selected from the manger of

growth of the Internet. As it has considerably changed the marketing department of the hotels. The

the operating environment of the hotel industry. Doolin questionnaire with 32 variables in total was

etal (2002) felt the Internet has become an innovative administrated to respondents it into two segments.

marketing tool in offering travel information and online Segment one contains 24 variables which are related to

transactions. Internet marketing tool is not just for big the questionnaire is divided into marketing practices that

hotel chains. Lituchy & Rail, (2000) studied that the are adopted by hotels and second segment have 8

websites are well-designed and easy to navigate to variables describing the effect of adopting marketing

provide independent hotels with an inexpensive and practices on the business performance of the hotels. The

effective platform for marketing and advertising, which result are obtained by using the mean and S.D method

potentially increase their competitiveness in the alone with percentage analysis method.

marketplace which is further supported by Merono-


193

Data Analysis industry. These are put through the mean and standard deviation meth which provided the significance of each Segment I of the questionnaire covers 24 variables that variable. are related to marketing practices adopted in the hotels

Table I PROFILE OF RESPONDENT

Particulars

Table II Marketing Practices


194

26(65%)

32(80%)

14(35%)

26(65%)

20(50%)

14(35%)

16(40%)

14(35%)

20(50%)

26(65%)

14(35%)

28(70%)

26(65%)

26(65%)

30(75%)

30(75%)

34(85%)

26(65%)

26(65%)

16(40%)

32(80%)

30(75%)

26(65%)

34(85%)

F.A. (5)

4.8500

4.6500

4.7500

4.6000

4.2500

4.6500

3.7500

4.8500

4.6000

4.7500

4.5500

4.5500

4.7000

4.0000

4.6500

4.5500

4.8000

4.1500

4.6500

4.3000

4.1500

4.1500

4.0000

4.4000

Mean

.36162

.48305

.43853

.81019

.77625

.48305

1.14914

.36162

.74421

.43853

.67748

.67748

.46410

.90582

.48305

.67748

.40510

.80224

.48305

.79097

.73554

.86380

.90582

.67178

S.D

4.8500

4.6500

4.7500

4.6000

4.2500

4.6500

3.7500

4.8500

4.6000

4.7500

4.5500

4.5500

4.7000

4.0000

4.6500

4.5500

4.8000

4.1500

4.6500

4.3000

4.1500

4.1500

4.0000

4.4000

S.D.A. (1)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

D.A. (2)

4(10%)

10(25%)

6(15%)

8(20%)

8(20%)

4(10%)

4(10%)

2(5%)

4(10%)

4(10%)

6(15%)

2(5%)

-

-

-

-

-

-

-

-

-

-

-

-

N (3)

16(40%)

14(35%)

16(40%)

18(45%)

12(30%)

14(35%)

20(50%)

8(20%)

10(25%)

14(35%)

14(35%)

6(15%)

14(35%)

10(25%)

20(50%)

14(35%)

14(35%)

6(15%)

4(10%)

10(25%)

10(25%)

10(25%)

12(30%)

-

A (4)

16

17

18

19

20

21

22

23

24

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

Sr. No.

Giving souvenirs and gift

Sharing of revenue, wet lease, and franchising with reputed property

Management contracts marketing

Giving discount at competitive product

Offering best product at lowest price

Loyalty and reward programs

Customer orientation marketing

Sales promotion programs

Green marketing with eco-friendly products

Extensive products market studies

The image of business partners and stakeholders

Customization and community building

Identifying profitable customers

Determine customer demographics

Interact with individual customer

Joint marketing with other hotels

Extensive selection of marketing partners

Selling spa, bath, and health facilities

Selling Banquet

Association with Tour operator, travel agencies, and airlines

Integrated marketing with F&B service

Integrated marketing with front office

E-marketing

Cross & up selling

Practies


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Data Analysis 10% respondents neutral. The image of business partners and stakeholders respondents 65% strongly agree, with Segment I of the questionnaire covers 24 variables that 25% respondents agree and 10% respondents neutral. are related to marketing practices adopted in the hotel Extensive products market studies 70% respondents industry. These are put through the mean and standard strongly agree, 30% respondents agree. Green marketing deviation method which provided the significance of with eco-friendly products 35% respondents strongly each variable. agree respondents 35% respondents agree, 5%

The presentation of data analysis from the above table respondents neutral and 25% respondents disagree. about respondent's views regarding, Integrated Sales promotion programs 65% respondents strongly marketing with front office 85% respondent strongly agree, 35% respondents agree. E-marketing 65% agreed, 15% respondents agreed. Integrated marketing respondents strongly agreed, 25% respondents agreed with F&B service 65% respondents strongly agreed, and 10% respondents neutral. Customer orientation 35% respondents agreed. Association with Tour marketing 80% respondents strongly agree, 20% operator, travel agencies, and airlines 75% respondents respondents agreed. Cross and Up selling 35% strongly agreed, 25% respondents agreed. Selling respondents strongly agree, 50% respondents agreed, Banquet 80% respondents strongly agreed, respondents 10% respondents neutral and 5% respondents disagreed. 20% respondents disagreed. Selling spa, bath, and health Loyalty and reward programs 65% respondents strongly facilities 40% respondents strongly agree, 50% agree, 35% respondents agreed. Offering best product at respondents agree, 5% respondents neutral and 5% lowest price 50% respondents strongly agree, 30% respondents disagree. Extensive selection of marketing respondents agree, 20% respondents neutral. Giving partners 65% respondents strongly agree, 35% discount at competitive product 35% respondents respondents agree. Joint marketing with other hotels strongly agree, 45% respondents agree, 20% 65% respondents strongly agree, 35% respondents respondents neutral. Giving souvenirs and gift 40% agree. Interact with individual customer 85% respondents strongly agree, 40% respondents agree, respondents strongly agree, 15% respondents agree. 15% respondents neutral and 5% respondents disagree. Determine customer demographics 75% respondents Sharing of revenue, wet lease, and franchising with strongly agree, 10% respondents agree, 15% reputed property 35% respondents strongly agree, 35% respondents neutral. Identifying profitable customers respondents agree, 25% respondents neutral and 5% 75% respondents strongly agree, 25% respondents respondents disagree. Management contracts marketing agreed. Customization and community building 65% 50% respondents strongly agree, 40% respondents respondents strongly agreed, 25% respondents agreed, agree, 10 % respondents neutral.

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The presentation of data analysis from the above table Referencesabout Respondents views regarding, Achieve American Marketing Association (2008). Resource library. Retrieved organizational goals 80% respondents strongly agree, June 18, 2008 from http: www.marketingpower.com/-

layouts/Dictionary_aspx?dletter=m20% respondents agree. Increase sales growth 85% respondents strongly agreed, 15% respondents agreed. Baloglu, S., & Pekcan, Y. A. (2006). The website design and Internet

site marketing practices of upscale and luxury hotels in Turkey. Increasing of market share 60% respondents strongly Tourism Management, 27, 171–176agree, 35% respondents agree, 5% respondents neutral. Capiez, A., Kaya, A., 2004. Yield management and performance in New Product development & internal quality 65% the hotel industry. Journal of Travel and Tourism Marketing 16, respondents strongly agreed, 30% respondents agreed 21–32.

and 5% respondents neutral. Growths in revenue 90% Cizmar, S., Weber, S., 2000. Marketing effectiveness of the hotel

respondents strongly agreed, 10% respondents agreed. industry in Croatia. International Journal of Hospitality Maintain customer relationship 92% respondents Management 19, 227–240.strongly agreed, 8% respondents agreed. Improve Claver-Cortés, E., Molina-Azorín, J.F., Pereira-Moliner, J., 2007. marketing performance 80% respondents strongly Competitiveness in mass tourism. Annals of Tourism Research 34,

727–745.agree, 20% respondents agree. Growths in potential customer 85% respondents strongly agreed, 5% Cruz, I., 2007. How might hospitality organizations optimize their

performance measurement systems? International Journal of respondents agreeing. Contemporary Hospitality Management 19, 574–588

ConclusionDoolin, B., Burgess, L., & Cooper, J. (2002). Evaluating the use of the Web for tourism marketing: A case study from New Zealand. Tourism The purpose of this study is to undertake an empirical to Management, 23, 557–561.investigation to know the significance of the marketing Gu, H., Ryan, C., 2008. Chinese clientele at Chinese hotels: practices adopted by hotels in Delhi for increase in the preferences and satisfaction.International Journal of Hospitality business performance. The finding suggests that Management 27, 337–345.

marketing practices are adopted by all the star hotels in Hashim, N. H., Murphy, J., Purchase, S., & O'Connor, P. (2010). Delhi and these practices are also contributing a lot in Website and email adoption by Malaysian hotels. International

increasing business performance. Integrated marketing Journal of Hospitality Management, 29(1), 194–196.with front office, Interact with individual customer,

Lituchy, T. R., & Rail, A. (2000). Bed and breakfasts, small inns, and Association with Tour operator, travel agencies and the Internet: The impact of technology on the globalization of small airlines, Extensive products market studies and businesses. Journal of International Marketing, 8(2), 86–98.

Identifying profitable customers are the practices which Merono-Cerdan, A. L., & Soto-Acosta, P. (2007). External Web are followed mostly by the all the hotel as a marketing content and its influence on organizational performance. European

Journal of Information Systems, 16(1), 66–80.practice. Loyalty and reward programs, Sales promotion programs, Determine customer demographics and Pan, C.M., 2005. Market structure and profitability in the

international tourist hotel industry. Tourism Management 26, Selling Banquet are considered as second best marketing 845–850.practices which are adopted by hotel to build up the Sainaghi, R., 2010. Hotel performance: state of the art. International image of the hotel. Offering best product at lowest price Journal of Contemporaryand Cross and up selling are average marketing tactics Hospitality Management 22, 920–952.which are adopted by the hotels of Delhi. Green Scaglione, M., Schegg, R., & Murphy, J. (2009). Website adoption marketing with eco-friendly products, Management and sales performance in Valais' hospitality industry. Technovation, contract marketing, and Joint marketing with other 29(9), 625–631.

hotels are the least adopted marketing practices and their Sin, L.Y.M., Tse, A.C.B., Heung, V.C.S., Yim, F.H.K., 2005. An contribution is also less in increasing the business analysis of the relationship between market orientation and business

performance. The major benefit comes generated from performance in the hotel industry. International Journal of marketing practices like Maintain customer relationship Hospitality Management 24, 555–577.that has led to growth in revenue and growth in potential Sin, L.Y.M., Tse, A.C.B., Chan, H., Heung, V.C.S., Yim, F.H.K., customer. The above marketing practices contribute 2006. The effects of relationship marketing orientation on business

performance in the hotel industry. Journal of Hospitality and Tourism significantly in maintaining relationship with the Research 30, 407–421.customer that would in turn lead to increase in the Wang, C.H., Chen, K.Y., Chen, S.C., 2011. Total quality revenue of the hotel. So, all such marketing practices are management, market orientation and hotel performance: the adopted by hotels in Delhi in order to improve business moderating effects of external environmental factors. International

performance, increase market reputation and good will Journal of Hospitality Management 31, 119–129.which will directly lead to huge revenue generation.

*Assistant Professor, Department of Management, Global Institute of Management, Amritsar (143001), Punjab, India **Assistant Professor, Galaxy Global Group of Institutions, Dinarpur, Ambala(Haryana)-133102


Customer Satisfaction level towards Indian Commercial Banking Sector

Vikas Anand* Parmod Kumar Singhal**

Introduction to Retail Banking • Multiple products (Deposits, Credit Cards, Insurance, Investments and Securities); The issue of Retail Banking is extremely significant. In

the whole world, retail lending has been a tremendous • Multiple channels of distribution (Call Centre, innovation in the commercial banking sector in recent Branch, Internet and Kiosk); and years. The growth of retail lending, especially, in • Multiple customer groups (Consumer, Small emerging economies, is attributable to the rapid Business, and Corporate). advances in information technology, the evolving

Retail Banking in Indiamacroeconomic environment, financial market reform, and several micro-level demand and supply side factors. Retail Banking in India is not a new phenomenon. It has

always been prevalent in India in various forms. For the India too experienced an increase in retail banking. last few years it has become synonymous with Retail loan is estimated to have accounted for nearly 20% mainstream banking for many banks. of all bank credit. Housing sector is experiencing a boom

in its credit. The retail loan market has decisively got The typical products offered in the Indian retail banking transformed from a sellers' market to a buyers' market. segment are housing loans, consumption loans for Gone are the days where getting a retail loan was purchase of durables, auto loans, credit cards and somewhat difficult. All these emphasize the momentum educational loans. The loans are marketed under that retail banking is experiencing in the Indian economy attractive brand names to differentiate the products in recent years. offered by different banks. Credit card is another rapidly

growing sub-segment of this product group.Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual The overall impairment of the retail loan portfolio customers, both on liabilities and assets sides of the worked out much less then the Gross NPA ratio for the balance sheet. Fixed, current / savings accounts on the entire loan portfolio. Within the retail segment, the liabilities side; and mortgages, loans (e.g., personal, housing loans had the least gross asset impairment. In housing, auto, and educational) on the assets side, are the fact, retailing make ample business sense in the banking more important of the products offered by banks. sector. Related ancillary services include credit cards, or

While new generation private sector banks have been depository services. Today's retail banking sector is

able to create a niche in this regard, the public sector characterized by three basic characteristics:

ABSTRACT

Service sector contribute near to 60% of Indian GDP. Banking sector is an important part of service sector. In current modern corporate world, there is an intense competition between private banks, public banks and foreign banks. Every bank is in the race in increasing CASA (Current account saving account) deposit. But along with raising deposit, banks should focus on its effective and efficient delivering of services. They should try to know the need and satisfaction level of customers towards its services. In order to know the current customer satisfaction level towards private and public Indian commercial banks, this primary study has been conducted on the customer satisfaction level towards services offered by Punjab National Bank and HDFC Bank. The analysis clearly shows that there exists wide perceptual difference among Indian (public sector) banks regarding overall service quality with their respective customers, when compared to Private sector banks.

Key Words: Customer Satisfaction, HDFC Bank, PNB, Banking Sector, SERVQUAL

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banks have not lagged behind. Leveraging their vast ? Focus on developing human resources to branch network and outreach, public sector banks have support the bank's strategyaggressively forayed to garner a larger slice of the retail Objectives of the study:pie. By international standards, however, there is still

1. To study the customer satisfaction level towards much scope for retail banking in India. After all, retail Indian Commercial Banks with special reference loans constitute less than seven per cent of GDP in India to Punjab National Bank and HDFC Bank.in 2013 vis-à-vis about 35 per cent for other Asian

economies — South Korea (55 per cent), Taiwan (52 per 2. To make the comparative study on services cent), Malaysia (33 per cent) and Thailand (18 per cent). provided by public and private sector banks

Retail banking in India has seen a dramatic change over 3. To study the dimensions related with Servqual the years. It has evolved from a time when the mindset of model of banking sector.a traditional middle class Indians used to be debt averse,

Research Design:which preferred managing under their thrifty means to

Descriptive research design is used and the data is the current mindset which doesn't hesitate in taking loans collected through the questionnaire. The service quality for spending. To keep in pace, the retail banking model developed by Zeithamal, Parsuraman and Berry environment today is changing fast. The changing (1988) has been used in the present study. The 19 customer demographics compel to create a differentiated statements have been grouped under five dimensions i.e. platform based on latest technology, improved service Tangibility, reliability, responsiveness, assurance, and banking convenience.emapthy. In order to ascertain the perceptions of service

The Indian economy is on a robust growth trajectory and quality, Likert's 5-point scale has been used. Rating scale

boasts of a stable annual growth rate, with rising foreign (Likert), 1-5 represents '5' as strongly agree and '1' as

exchange reserves and flourishing capital markets strongly disagrees.

among other factors. World Bank estimates the Indian Sampling area was Amritsar region. Non- Probability economy to be amongst the top 3 economies in the world Convenience Sampling is used for the study and has been by 2050.restricted to time period from September 2013 to

In the Retail Banking category, the banks were judged on October 2013. Sample size of 100 respondents is taken

some of the following parameters:from both PNB and HDFC Bank separately.

• Outstanding annual performance of the retail Data source

banking unit The data is collected from 200 respondents (100

• Sustainability as a franchise over a long period of customers from both banks separately). These include

time and across economic cycles general people of the Banks, Doctors, Businessmen,

• A well-defined franchise in the chosen Professors and other respondents from self employed marketplace category. The respondents were contacted personally in

order to seek fair responses on quality of bank service. • Transparency and accountability of business Secondary data has been collected from the various model websites, books and magazines. Statistical tools used

• Ethical banking were weighted mean and percentage analysis.• Clear sales and execution skills at the product Limitations of the Study

level 1) Due to time and cost factor only 200 (100

• Rigorous risk management capabilities customers from each bank) customers were • Superior business and operational processes and surveyed.

technology 2) The study is limited to Amritsar city.• Strong penetration and efficiency of distribution 3) All the information furnished by the respondent

channels


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was treated as correct.

4) The results of the study cannot be generalized due to small survey base.

The analysis of table number 3 shows that customers of Punjab National bank rely on the services of Punjab National Bank as compare to the customers of HDFC Bank. PNB is much ahead of HDFC Bank in terms of delivering the right service first time, error free The analysis of table number 1 shows that HDFC Bank transaction, delivering the promised service and service quality level is better than Punjab National Bank. showing keen interest in solving the problems of its The total mean of HDFC Bank is 58.1 higher than the customers. mean of 55.9 of Punjab National Bank. Punjab National

Bank is lacking in tangibility, responsiveness, assurance, empathy while HDFC Bank is lacking in reliability aspect.

The analysis of table number 4 shows that HDFC Bank is The analysis of table number 2 shows that customers of quick in responding the queries of its customers. HDFC HDFC Bank are more satisfied with sophisticated Bank is quick in applying its turnaround time while equipments, appearance of employees, ATM and solving the customer complaints or any request. Punjab servicescape of bank. Punjab National Bank tangibility National Bank responsiveness mean is 11.7 which show mean is 11.8 which is far less than the mean of HDFC that its customers are less satisfied with the responses Bank. given by the staff.

Analysis and InterpretationTable No.-1, Overall Service Quality

Dimension wise analysisTable No.-2, Tangibility

Table No.-3, Reliability

Table No-4, Responsiveness


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assurance, empathy.

2. Customers want to operate their accounts 24X7. For this, HDFC Bank and PNB are offering NET Banking, mobile banking etc. HDFC Bank has also started its mobile banking website i.e. www.m.hdfcbank.com.

3. Indian commercial banks need to extent the customer operating hours in order to get more customers.

4. Banks should continue to know the customers need and should build the products which are The analysis of table no-5 shows that HDFC Bank

delivered assured services to its customers. Its mean is convenient to customers. They should also 11.7 much higher than the mean of Punjab National build a strong brand and should deliver the Bank. HDFC Bank staff is courteous with customers, effective service.customer feel safe while doing transaction with HDFC

5. Banks should also focus on service recovery Bank. HDFC Bank employees instill confidence in its as it is better to retain the current client than to customers. Only the customers of Punjab National Bank get the new customer.are satisfied with the knowledge of its employees.

6. Public sector banks need to catch up with the services offered by Private sector banks and foreign banks.

References:

http://www.oifc.in/investing-in-india/investment-info/partners-speak/retail-banking-in-india

http://timesofindia.indiatimes.com/topic/Retail-Banking-In-India/news/

http://www.scribd.com/doc/20997065/Retail-Banking-in-IndiaThe analysis of table number of 6 shows that HDFC

http://www.ssmrae.com/admin/images/bcc87304c042d8ea9dc7deeBank is providing convenient operating hours to its 5234fc6f8.pdf

customers, it gives individual attention to its http://www.aims-international.org/aims9/aims9cd/pdf/P9455-

customers and always try to know the need of its Final.pdf

customers. Punjab National bank having the mean http://www.hdfcbank.com/htdocs/aboutus/awards/Best_Retail_Bank_Awards12.htmof 8.4 is lagging behind HDFC Bank in terms of Parasuraman, Valarie A. Zeithaml, and Leonard Berry, SERVQUAL: empathy.A Multiple Item Scale for Measuring Customer Perceptions of

Conclusion: Service Quality, Journal of Retailing 64 (1988).

Jha, S. M. 2000, Bank Marketing Millennium Edition, Mumbai: 1. The overall analysis shows that HDFC Bank Himalaya Kotler P. and Armstrong G. (1991) “Principal of

is performing better than Punjab National marketing” Englewood liffs New Jersay Prentice hall.

Bank in terms of tangibility, responsiveness,

Table No-5, Assurance

Table No.-6, Empathy

*Asst Prof Centre for Economics, Central University of Orissa, Koraput


Impact of MGNREGA on Women Empowerment-A Case Study of Cuttack District in Odisha

Minati Sahoo*

Importance of study sampling was done to select a sample of 50 female workers working under MGNREGA from this A nation goes ahead only through the contribution of all panchayat. Data were collected from them through of its members. Pushing women into the backyard drags scheduled questionnaires. Different websites, journals behind the society. Though India is developing were used to get secondary data.economically and technologically by leaps and bounds

but women, especially rural women still continue to be Finding and Policy Prescriptiondiscriminated and their current status in the society still It was found out from the study that despite numerous causes concern. It is therefore essential to integrate problems like no timely payment of wages, low levels of gender perspectives in policies, projects and programs awareness about programme ,lack of worksite facilities, that can be achieved by gender analysis. MGNREGA has and low participation of women workers in PRI's become a beacon of light in the empowerment of rural activities ,overall impact of MGNREGA on women's women, and contributed substantially for the increased lives has been quite positive in many ways, whether it is living and economic conditions by creating equal wages by enhancing their economic independence and self-to male and female workers and increasing minimum confidence, by helping them to have greater role in wages. decision making in household, contributing to food Objectives of study security, or fostering better awareness (and wider

enforcement) of minimum wages. A review of five years 1. To examine the level of participation of women in of MGNREGA programme shows that the challenge is MGNREGA in Odisha and India.not to reinstitute policy for women's economic security,

2. To find out the impact of participation in but to redeploy the machinery already in place to be used MGNREGA on women empowerment in Nelia in a more gender responsive manner to overcome village of Cuttack district in Odisha. persistent gender inequalities, in both economic and

socio-cultural spheres. 3. To shed light on possible improvements that can be introduced to make MGNREGA more effective Conclusionand responsive to the needs of women.

As a progressive legislation for excluded groups - Methodology of study women, Scheduled Castes, Scheduled Tribes, among

others – MGNREGA can help to reclaim the lost faith in This study is based on both primary and secondary data. the possibility of pro-people governance, while Primary data is collected though a survey that was recognizing the significant achievements of carried out in Nelia village in Tangi -Choudwar block of MGNREGA with regard to Gender parity of wages, Cuttack district of Odisha in 2012-13. A random

ABSTRACT

The paper attempts to study the impact of MGNREGA on women empowerment through their participation in Odisha. It will highlight some facts about level of participation of women in MGNREGA in Odisha. Further an attempt has been made to have an analysis of impact of such participation on women empowerment in Nelia village of Tangi-Choudwar block of Cuttack district in Odisha. It has been found out that the level of participation of women in MGNREGA in Odisha has been between 35-40 percent over a period of five years (2008-09 to 2012-13). Further it was found out that overall impact of MGNREGA on women's lives has been quite positive in many ways, whether it is by enhancing their economic independence and self-confidence or by helping them to have greater role in decision making in household, An integrated approach that links equality-based rights to manage productive assets and gender inclusive is the need of the hour for addressing risks arising from MGNREGA fatigue.

Keywords: Participation, Empowerment, Gender Inclusive

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Mobilization of women for MGNREGA employment of women & in improving this status. A nation goes and Increased in control rights of women in earnings ahead only through the contribution of all of its from MGNREGA. members. Pushing women into the backyard drags

behind the society. Current framework of international I. Introduction development recognizes women empowerment as an

“Employment to all” has always been accepted as one immense effective stratagem for the all round of the policy goal of India. Many schemes like National development of the society. Though India is developing Rural Employment Programme(1980-89);Rural economically and technologically by leaps and bounds Landless Employment Guarantee Programme(1983- but women, especially rural women still continue to be 89);Jawahar Rozgar Yojana (1989-99);Employment discriminated and their current status in the society still Assurance Scheme;Jawahar Gram Samridhi causes concern. (Hazra A, 2011)Yojana(1999-2002);Sampoorna Grameen Rozgar

Measures to improve the status, role and participation of Yojana(2001-08) and National Food For Work rural women must be given high priority both because Programme(2004-08) were introduced to achieve this women have a fundamental right to enjoy equality with goal. But in these entire programmes there was no men in all aspects of life and because women can play a guarantee of employment for longer period of time or crucial role in and must fully participate in the payment of minimum wages which compelled the sustainable development process. It is therefore government to ensure guaranteed jobs for substantial essential to integrate gender perspectives in policies, period of a year and minimum wages. The Mahatma projects and programs that can be achieved by gender Gandhi National Rural Employment Guarantee Act analysis. MGNREGA has become a beacon of light in (MGNREGA) is one of the most progressive the empowerment of rural women, and contributed legislations enacted since independence. Its significance substantially for the increased living and economic is evident from a variety of perspectives. First, it is a bold conditions by creating equal wages to male and female and unique experiment in the provision of rural workers and increasing minimum wages (Hazra A, employment – in India and indeed in the world at large. 2009).MGNREGA is a hundred percent centrally Second, it is the first expression of the right to work as an sponsored scheme, which provides rights-based enforceable legal entitlement. In a country where labour framework of wage employment programme and makes is the only economic asset for millions of people, gainful the government legally bound to provide employment to employment is a prerequisite for the fulfilment of other adult members of rural household. The Act got first basic rights – the right to life, the right to food, and the introduced in 200 most backward districts of the country right to education. in Feb 2006. It was proposed to extend to the remaining

Empowerment has become the buzz word for the last districts only after 5 years, after seeing the popularity of two decades. It is a process of building capacities of the Act. But in the next year itself the Act was extended creating an atmosphere which enables people to fully further to 130 more districts & within a year after the Act utilise their creative potential in pursuance of a quality got universalized by bringing the entire country under its life. It is a social action process that promotes horizon with the exception of districts that have a participation of people's organisation and communities hundred percent urban population & got soon named

ndin gaining control over their lives in their communities after Mahatma Gandhi (2 October 2009) to make the (Hazra A, 2009).Empowerment gives women the Act more reachable to the masses and thus it became capacities to influence in decision making process, Mahatma Gandhi National Rural Employment planning implementation & evaluation by integrating Guarantee Act (MGNREGA). There is much that the them into political system. Women empowerment is not MGNREGA promises from the perspective of women's only empowerment but also crucial if development is to empowerment. Most boldly, in a rural milieu marked by be sustainable. Indian economic reforms based on stark inequalities between men and women – in the globalisation, liberalisation and empowerment of opportunities for gainful employment afforded as well as women by reserving 33% reservation in areas such as wage rates –MGNREGA represents action on both these Panchayati raj are opening new vistas for development counts. The act stipulates that wages will be equal for


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men and women. It is also committed to ensure that at 3. To shed light on possible improvements that can least 33% of the workers shall be women. By generating be introduced to make MGNREGA more employment for women at fair wages in the village, effective and responsive to the needs of women.MGNREGA can play a substantial role in economically Women will be benefited in some way if they participate empowering women and laying the basis for greater in the programme. So the next section deals with the independence and self-esteem. Various provisions under comparative analysis of women participation in the Act and its Guidelines aim to ensure that women have MGNREGA in Odisha and India.equitable and easy access to work, decent working

II. Women's Participation under MGNREGA conditions, equal payment of wages and representation on decision-making bodies. Though much has been there As women's participation is one of the most targeted in the act to empower women, whether really it is doing objectives of MGNREGA, it is important to see the so. This needs an evaluation of MGNREGA in extent of women's participation in the programme. There empowering women. So an attempt has been made to are various factors which encourage the women worker's examine the impact of MGNREGA on women participation under this scheme include nature of work, empowerment with following specific objectives: which do not need skilled worker, the limited hours of

work, availability of work locally, reduction of 1. To examine the level of participation of women in migration of male member, substantial jump in the wage MGNREGA in Odisha and India.rate etc. Participation of women varies widely across the

2. To find out the impact of participation in nation. Women participation under MGNREGS is MGNREGA on women empowerment in Nelia measured in person days. Table 1 shows the participation village of Cuttack district in Odisha. of women in MGNREGA in Odisha and India.

Table 1: Women Participation in MGNREGA in Odisha and India

Source: compiled by author and www.nrega.ac.in

From table 1 it can be seen that Women participation rate Research studies also indicate that MGNREGA is an has ranged between 45-55 per cent of the total person- important work opportunity for women who would have days generated much above the statutory minimum otherwise remained unemployed or underemployed. But requirement of 33 per cent in India. Though in Odisha the figures about rate of growth of person days generated participation rate has ranged between 35-40 per cent show a dismal state of affairs. Comparing the figures of which is lower than national average but still it is above Odisha and India, though participation of women is more the statutory minimum requirement of 33 per cent. In in India than Odisha but rate of growth of person days fact, the participation rate of women under the Scheme generated has been negative for continuous three years has been higher than in all forms of recorded work. from 2010-13 where as it has been negative for last two


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years in Odisha, which is definitely a serious situation. participation,it has encountered a fall in last two years This shows that employment generated under from 2011-13.The comparison of rate of growth of MGNREGA is on decline but we still could satisfy person days generated in India and Odisha can be seen in ourselves that participation of women in MGNREGA in figure 1.India is on rise. Regarding Odisha women

Figure 1: Rate of Growth of Person Days generated to women

Source: compiled by author

With an increased rate of participation and amounts A. & Tankha, R. 2010; Panda, B. & Umdor, S, 2011).being spent on wages for women, studies and field Though women have been coming out in large numbers evidence suggest a positive impact of the Scheme on the to participate in the scheme ,the most important issue is economic well-being of women. The impact of women empowerment through participation .The MGNREGA on gender empowerment in Morigaon and question remains –Does participation in MGNREGA Bongaigaon district of Assam showed that almost 70 to lead to empowerment ?A lot of literature though 80 percent of sample workers had meaningful income supports the emergence of women workers as other than unpaid family work during the pre-NREGA independent bread earner leads to greater role in decision (Hazarika P.G, 2009). The Scheme has also led to gender making in the family, discretion to spend and control the parity in wages. The NSSO 66th Round indicated that use of earning and confidence to earn without support MGNREGA has reduced t rad i t iona l wage further needs to be examined at micro level which is discrimination in public works. analysed in next section. MGNREGA holds the powerful prospect of bringing I. Impact of MGNREGA on Women Empowerment major changes in the lives of women (Ramesh, G. &

To assess the impact of MGNREGA on women Kumar, T.K., 2009) .Access to economic resources also empowerment, a survey was carried out in Nelia village had a favorable impact on the social status of women. in Tangi -Choudwar block of Cuttack district of Odisha MGNREGA work has allowed women to spend money in 2012-13. A random sampling was done to select a on their own needs, while earlier they might not have sample of 50 female workers from this panchayat. Data been at the liberty to do so ( Khera, R. & Nayak, N,2009) were collected from them through scheduled .This programme has also helped in easing out the debt questionnaires.burden to some extent (Ramesh, G. & Kumar,

T.K.,2009). Even there has been an increased More than half (52%) of the interviewed women were participation of women in gram sabha meetings (Pankaj, Scheduled Tribes; the rest were SCs (40 per cent) and


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OBCs (8 per cent). Most respondents reported other it provide supplementary income during lean agriculture or manual labour (construction) as the agricultural season and even to some of them they are household's main occupation. Number of days worked, working early in the morning within 9 am or digging 100 amount of wage, importance of scheme in workers life, cubic feet soft soil getting the MGNREGA payment and collection of wages, decision in household expenditure, going to their daily wage work i.e. earning both ways.level of awareness, worksite facilities, participation in It is also clear that, men and women are paid equal wages gram Sabha meetings are the parameters based on which at MGNREGA worksites as has been mandated by the impact of MGNREGA on women empowerment in the Act. Given that wage gaps between the male and female present study will be assessed. casual workers have been the norm in rural India, this is 1. Number of Days Worked and Wages an extremely significant development.

Employment at MGNREGA worksites seems to have 2. Contribution to Women's Independenceraised both enthusiasm and expectations among women By putting cash incomes into their hands, MGNREGA is workers. Women workers unanimously affirmed that the beginning to create a greater degree of economic benefits from MGNREGA employment were high and independence among women. As mentioned, this was that they would like to get more days of work in a year. one of MGNREGA's main aims. With the increased The challenge of the situation becomes clearer when we participation of women in household income-generation look at the small proportion of women surveyed (only 10 a positive contribution to gender relations can be made. per cent) who got more than 75 days of work in the last The survey data suggest that women workers are more year. Almost half of the respondents (70per cent) confident about their roles as contributors to family reported that they had worked for less than 25 days in the expenditure and their work decisions, and that they are previous year. also becoming more assertive about their space in the Regarding wage payments, we found that most women public sphere.workers were receiving the stipulated minimum wage, Near about all the respondents felt that the MGNREGA i.e. Rs. 100 per day or Rs 90 per assigned work. One has brought a significant change in their villages as well surprising thing we found out those women workers are as in their own lives. This is because employment is getting more wage payment i.e. Rs 150 as a daily being provided within their village, generating agricultural or manual worker .when I asked them why community assets and enhancing their spending they are working under MGNREGA when they would be capacity. Most of the women felt that the Act is getting more wage if engaged in agricultural or manual “important” for them as seen in figure 2.works. Some says that they would getting the work under MGNREGA within 5 km from their village and if it is more than that, extra payment would be paid while to

Figure 2: Percentage of MGNREGA women workers considering programme as important



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When asked about their decision to work under the decision. Evidently, MGNREGA employment has MGNREGA, most respondents said that the encouraged women to take the decision to enter the decision to work at MGNREGA worksites was their sphere of the cash economy (figure 3).own. About 95 % report that it was their own

Figure 3: Percentage of women workers who took their own decision to work under MGNREGA


Another important point that emerged from the survey is person, rather than through husbands or other that women workers were receiving their wages in persons.97% received their own wage. (Figure 4)

Figure 4: Percentage of women who collect their MGNREGA wages in person


Inevitably, women's MGNREGA earnings are Further, it helps them to keep themselves away from the increasing their contribution to household income. A clutches of local moneylenders. A significant percentage large majority (70 per cent) of the respondents said that of workers – almost 44 per cent - also spent their they spent wages earned at MGNREGA works on MGNREGA wages on their children's education. The regular food and consumer goods. The increased income other large expenditure regularly met through locally available through MGNREGA work, they felt, MGNREGA wages is health care, with 62 per cent of the was helping to ensure at least two regular meals a day. respondents having spent earnings on this. Around 14% For the most part, the amounts earned through says that they spent their wages on other ways like MGNREGA are insufficient to repay debts. purchase of agricultural inputs (seeds, fertiliser), Nevertheless, 34 per cent of the respondents said that maintenance of house etc. (figure 5)they had spent their wages on repaying small debts.


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Figure 5: Percentage of women who spent their MGNREGA wage on different items


All this taken together seems to sketch out the 4. Worksite Facilities beginnings of a marked shift from the previous role of The MGNREGA is committed to ensure a workplace women. While women's labour (farm and non-farm) has conducive to productivity and workers' welfare. With always been an essential component in the functioning this in mind, MGNREGA funds have been allocated for of rural households, it has been made invisible due to the the provision of safe drinking water, shade for periods of absence of any monetary remuneration. By putting rest, first aid and child care facilities at the worksite. The additional cash earnings in women's hands, MGNREGA last of these, in particular, is significant in order to make has both increased and diversified the contributions that MGNREGA work a viable option for women with women are making to household incomes as wage young children who cannot be left alone at home. It is earners. disturbing, therefore, to find that most of these facilities 3. Awareness are routinely absent from worksites.

It is perhaps predictable that awareness about the 5. Participation in Panchayati Raj Institutions provision of MGNREGA will be low among (PRIs) and Gram Sabhasdisadvantaged communities. About 25 per cent of all MGNREGA is designed to be largely implemented sample workers were aware of the level of minimum through PRIs – at least 50 per cent of all sanctioned wage. Most women were aware that under the Act each works are to be implemented by the Gram Panchayats. household is guaranteed 100 days of work in a year. But The Gram Sabha too plays a crucial role in the selection awareness regarding operational guidelines, household of works and the conduct of social audits. During the registration, work applications and entitlements such as survey it was found that women workers did not worksite facilities and unemployment allowance was generally take part in Gram Sabhas. This is partly due to inadequate. Around 90% per cent of women workers lack of awareness about the significant role to be played have reported of having knowledge about job card by the Gram Sabhas in making a selection of projects registration. The situation was worse with respect to and conducting social audits of MGNREGA works. applications for work. Only 28 per cent of the women Women's participation in gram sabha is very low – only surveyed were aware of the work application process 20 per cent of the respondents said that they were and had applied for work themselves. involved in PRI's activities. The low level of awareness among women workers is Thus from above analysis it was found out that despite indeed worrying. Generating much higher awareness numerous problems like no timely payment of wages, about MGNREGA work clearly constitutes one of the low levels of awareness about programme ,lack of key challenges for authorities, NGOs and popular worksite facilities, and low participation of women movements. workers in PRI's activities ,overall impact of


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MGNREGA on women's lives has been quite positive in in participation of women in planning and social many ways, whether it is by enhancing their economic audits of MGNREGA implementation, in turn, independence and self-confidence, by helping them to will create an opportunity for women's role in have greater role in decision making in household, asset management. The SHGs are one of the contributing to food security, or fostering better potential institutions at the grassroots level which awareness (and wider enforcement) of minimum wages. can be used as an instrument of gender responsive A review of five years of MGNREGA programme implementation of guaranteed employment in shows that the challenge is not to reinstitute policy for creation of productive assets.women's economic security, but to redeploy the 5. There should be upward revision of minimum machinery already in place to be used in a more gender wage and efforts should be made to provide wages responsive manner to overcome persistent gender on time.inequalities, in both economic and socio-cultural

6. It seems that emphasis was made only on spheres. providing work opportunities to unskilled labour,

I. Policy Prescription to improve MGNREGA in so steps should be taken by government to Empowering Women upgrade the skills of rural women and enable them The overarching vision that informs the design of to earn more.MGNREGA for women's economic empowerment has V. Conclusionhardly ever articulated the need for women's interests

Viewed in a wider perspective, MGNREGA signals a and inclusion of adequate numbers of women in possible reshaping of state priorities in India through a management and social audits of creation and democratic determination to provide real livelihood maintenance of productive assets. These errors or opportunities for the rural poor. Thus, as a progressive omissions and systematic de-emphasizing of gender legislation for excluded groups - women, Scheduled equality in MGNREGA policies need to be made visible Castes, Scheduled Tribes, among others – MGNREGA through district-level and country-level workshops. An can help to reclaim the lost faith in the possibility of pro-integrated approach that links equality-based rights to people governance, while recognizing the significant manage productive assets and gender inclusive, achievements of MGNREGA with regard to Gender participatory rural institutions is the need of the hour for parity of wages, Mobilization of women for MGNREGA sustainable development and for addressing risks arising employment and Increased in control rights of women in from MGNREGA fatigue. The following are certain earnings from MGNREGA.policy measures that can be taken into consideration to

make this programme more beneficial from women MGNREGA has positive impact on gender and gender perspective. empowerment. Women have benefited both as

individual and community. Women are benefited 1. Women should not be subjected to hard manual individually because they are able to earn independently, work and efforts should be made to extend spend some money for their own needs, contribute in MGNREGA provisions for skilled and semi-family expenditure etc. The gained benefits of women as skilled work such as weaving, artisanal work etc.community can be understood by increased presence in

2. Awareness about MGNREGA and its provision the gram sabha, increasing number of women in can be spread through radio, poster, television, speaking out in the meetings, increasing capacity of notice board on gram sabhas, etc interaction etc. But the poor implementation across the

3. MGNREGA implementation in the ongoing nation (such as lack of child care facility, worksite phase could be strengthened by provisioning of facility and illegal presence of contractors) accrued the what is already available in the Act, such as gender sensitiveness of this act. Certain initiatives and worksite facilities, eg.shade and safe drinking changes should be taken to remove these barriers. The water and to some extent child care facilities. valuable gains should not be derailed for poor

implementation. Lack of timely payment, availability 4. Some “gender-neutral measures” such as increase


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Hazarika, P.G. (2009). Promoting Women Empowerment and work site facilities, low awareness among women about Gender Equality through the Right to Decent Work: Implementation MGNREGA and its benefit are some of the reason why of National Rural Employment Guarantee Programme (NREGP) in

there has been a marginal increase in women Assam State (India): A Case Study, Graduate School of Development participation in Odisha in period of four years. Solving Studies, The Hague, the Netherlands.

such problems could increase women participation and Http://nrega.nic.in/netnrega/home.aspx as assessed on 10/05/2013this could lead to women empowerment. So the role of

Khera, R. & Nayak, N. (2009). Woman Workers and Perceptions of MGNREGA as a tool of women's empowerment the NREGA. Economic and Political Weekly, 44, 49-57. deserves much more attention than it has received so far. Ramesh, G. & Kumar, T.K. (2009). Facet of Rural Women

Empowerment: A Study in Karimnagar District in Andhra Pradesh. ReferencesKurukshetra, 58, 29-30.

Hazra A (2009),”Tranforming Rural India”,Kurukshetra ,A Journal Panda, B. & Umdor, S. (2011) Appraisal and Impact Assessment of on Rural Development, vol 58(2), pp 7-14MGNREGA in Assam. North-Eastern Hill University. Shillong.

Hazra A (2011),”Empowering women in Rural India:Exploring the Pankaj, A. & Tankha, R. (2010). Empowerment Effects of the current dynamics”,Kurukshetra ,A Journal on Rural Development, NREGS on Women Workers: A Study in Four States. Economic and vol59(11), pp 3-5Political Weekly, 30, 45-55.

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