prestige international journal of management and research

VOLUME 11 NUMBER 4 JANUARY 2020Special Issue

Vo

l 11 (4

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Prestige Institute of Management and Research, Indore, M.P. India{an Autonomous Institution Established in 1994 & Accredited Twice Consecutively with Grade ‘A’ NAAC (UGC)}

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PRESTIGE INTERNATIONAL JOURNALOF MANAGEMENT AND RESEARCH

Prestige Institute of Management and Research, Indore, INDIA{an Autonomous Institution Established in 1994 & Accredited Twice Consecutively with

Grade ‘A’ NAAC (UGC)}Special Issue - Rethinking Strategies for Leadership & Governance in Emerging Global Scenario.

A Bi Annual Journal Published by

ISSN: 0974-6080

S. No. VOLUME 11 NUMBER 4 January 2020

ARTICLES

1 A Study on Export Performance of Special Economic Zones SEZs and Export OrientedUnits (EOUs) of Madhya Pradesh from IndiaMurlidhar Panga and Arpan Shrivastava 1

2 Abridging Gender Gap in Intellectual PropertyArushi Gaur Chauhan and Swati Rai 8

3 Attitude of Teachers Towards Teaching Profession: A Critical ReviewGeeta Jain, Manisha Singhai, Khushboo Makwana, Shaan Malhotra and Divya Tiwari 12

4 Cause Related Advertisement: A Strategic Tool to Predict the Consumer’s PurchaseIntention with Moderating Role of Willingness of Contribution Size in Western IndiaSuraj Shah, Mahendra S. Sharma and Maurvi Vasavada 18

5 Dual Career Couples: Development of Concept MatrixTanvi Paras Kothari and Sameer Pingle 30

6 Emerging Risk Metrics in Banks Using Econometric Indicators and Bank DependentFactors Viz. CAMELSDeepak Tandon, Aman Vaishnav and Neelam Tandon 41

7 Entrepreneurial Intention among Medical Students: A Comparative StudySwaranjeet Arora and Shakuntala Jain 54

8 Exploratory Research of Factor Affecting Organizational Commitment: A Study ofPrivate BanksInderpreet Gandhi Chhabra, Satnam Ubeja and Shail Shri Sharma 62

9 Impact of Income and Quality of Asset on Profitability of Select Indian BanksNitin Tanted and Vaibhav Mathkari 71

10 Importance of Artificial Intelligence in Administration of Intellectual Property Lawsin FutureSunita Arya 79

PRESTIGE INSTITUTE OFMANAGEMENT AND RESEARCH(An Autonomous Institution Established in 1994, Accredited TwiceConsecutively with ‘A’ Grade by NAAC (UGC))

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S. No. VOLUME 11 NUMBER 4 January 2020

11 Influence of Indian Ethos on Human Resource Development : A Perceptual StudyAnkush Pingle, Shriram Zade and Amuya Deshpande 82

12 Organized Retails and Consumer Shopping Preferences- A Study on Big Mart –KathmanduVibhuti Jha 86

13 Plugging the Loopholes between Artificial Intelligence and Intellectual Property LawsIn IndiaRitupriya Gurtoo and Sayali Bandi 94

14 Recruitment of IT Professionals in Malaysia: Challenges faced by L&T Infotech Limited,MumbaiArjita Jain and Sandeep Ponde 99

15 Role of IBC in NPA Resolution in IndiaAvijit Bakshi and Somen Mitra 106

16 Role of Social Media in Internet Marketing : A Tool to Improve Brand LoyaltyPooja Lawande Karmali 117

17 Social Media Ads and Startups Acceleration: A Factor Based ApproachDhanshree Nagar and Kshama Ganjiwale 126

18 Spiritual Governance and Nation Well beingAnu Verma Puri 134

19 Student Support and Progression Practices : A ReviewAnukool Hyde and Deepti Bajpayee Kukrety 142

20 Testing the Capital Asset Pricing Model (CAPM) and Causal Relationship: A Study ofHedge Fund Sector in IndiaDeepika Batra and N. K. Totala 149

CASE STUDIES

National Olympiad Foundation: An Educational EndeavourAnkita Jain and Anukool Hyde 160

1

A STUDY ON EXPORT PERFORMANCE OF SPECIAL ECONOMICZONES (SEZS) AND EXPORT ORIENTED UNITS (EOUS) OF MADHYA

PRADESH (INDIA)

Murlidhar Panga*, Arpan Shrivastava**

Increasing demand and growing population have an immense scope for international trade.Through international trade countries have started to export their surplus commodities that areproduced to satisfy the unlimited and scare wants of the particular commodity in another country.The present study was focused to evaluate the performance of Special Economic Zones (SEZs)and Export Oriented Units of Madhya Pradesh (EOUs). This research paper has evaluated theperformance of SEZ Pithampur and the Export Oriented Units located in Mandideep. The resultfound that there is a positive relationship between SEZ exports and total exports from India,and there is no significant impact of EOUs located in Mandideep total exports from India.Special Economic Zone (SEZ) is an area which is governed and run in the supervision of thegovernment and EOUs are those units which enjoys the similar benefits which are meant forSEZs while getting settled in a Domestic Tariff Area (DTA), but the main condition for availingthose benefits is that they have to export their 100 percent production.

Keywords: Exports, SEZ, Export Performance, SEZ Exports, DTA, EOUs.

INTRODUCTION

The word ‘Special’ in Special Economic Zones(SEZ) means special economic system andpolices. The very first Special Zone whichbears any semblance to the present- dayones were set up in Spain in 1929 with theintention of increasing exports by value-addition to the raw materials available in thatcountry (Dhawan, 1999). China opened upits vast domestic market to Western capitaland technology that gave big boost to SEZs.Several other developing countries such asUAE, Malaysia, Jordan, Poland, Kazakhstan,Philippines, Russia, and South Korea are alsofollowing the Chinese path to liberalize theireconomies. Most countries in South Asia likeBangladesh, Sri Lanka, Pakistan and Nepalhave all tried to promote their exports andalso created employment by establishingSEZs.

In this era of globalization, most of thedeveloping countries in the world areobserving a shift towards export promotion

strategy from import substitutions strategy.Many of these developing countries aredynamically promoting EPZs, as a part oftheir policy for export promotion. Exportpromoting zones are considered aspromoting exports from the country andearn foreign exchange for the country, andthey also work as the motivator for theeconomic growth with the help of additionalinvestments, employment generation andtechnological transfer. In the year 1986, therewere around 175 such zones in 47 countries.The number of zones were raised to over3000 in around 116 countries. The majorityof these type of zones were started either indeveloping countries or in under developedcountries.

A Special Economic Zone (SEZ) may beclassified as a geographical area or region thathas comparatively liberal commercial andeconomic laws. SEZ includes a wider rangeare more than 40 years old, and it hasundergone various ups and downs. The first

* Associate Professor, Prestige Institute of Management and Research, Indore** Assistant Professor, IBMR, IPS Academy, Indore

Prestige International Journal of Management and Research || ISSN: 09746080 || Vol. 11 (4), January 2020

2

Special Economic Zone (Kandla) wascompletely established by the Governmentof India in the rural coastal areas for objectiveof development in rural area in state ofGujarat.

The Indian domestic economy was governedby a complex system of controls between1960s and 1990s. These rules, regulationsand restrictions were extended to thecountry’s promising SEZ policy. As a resultthe export and trade performance of India’svery first Export Promotion Zone was not upto the mark and India’s export declined from9 percent in 1975 to 1.5 percent in 1982. TheIndian economy underwent huge tradeliberalization and privatization in 1991 andits focus changed from imports to export. Atthis point of time the SEZ/EOU schemes havecome up with an important element andbecame a driver of growth. This period ofliberalization is also known as first phase.Whereas the second phase of liberalizationconsidered after 2005 which allowed thecreation of Special Economic Zones withpublic and private partnership, and soonthereafter converted all existing exportprocessing and business zones to “SpecialEconomic Zones”.

REVIEW OF LITERATURE

Guruprasad (2015) suggested that the SEZis a geographical territory having differentlaws and regulations from the home country.SEZs are set up for the purpose of increasingexports and inviting FDIs. The governmentwas focusing upon Make in India howeversome experts suggests that withdrawal of taxincentives from SEZ make it unattractive.Currently, under some scheme units inspecial economic zones were exempted fromthe MAT (Minimum Alternate Tax) butresearchers have indicated that if tax benefitshave been removed from the SEZ policythen it will become very difficult for thegovernment to attract foreign investors.

Aggarwal (2005) published an article in EastAsia forum and debated on a question thatSEZs are the growth engines or missedopportunity in case of India. The authorsuggested that government has to rebuildthe trust of investors by restoring tax benefitswith a clear framework of rules andregulations, and if there are any changes inthe act then it must be passed by theparliament. Further, the author elaboratedthat the SEZ program must be merged withMake in India campaign so that theproduction as well as the GDP of the countryrises. The paper concluded that SpecialEconomic Zones still have the potential tobe the main contributor in the economicgrowth of India. Hence, government shouldconcentrate and act quickly to uplifting theperformance of SEZ otherwise it will becomea missed opportunity.

Shrivastava and Panga (2017) suggested intheir paper that through export and importcountries have started to trade their surpluscommodities to rest of the world. Theyidentified that there is a positive and strongcorrelation between exports from specialeconomic zones and total exports from thecountry. They concluded that there are only15 operational SEZs in India and out of these15 states only 4 states are contributingactively in the total exports of the country.The result of the study suggested thataccording to trend analysis the contributionof SEZ in total Exports is increasing in thefuture too.

Kwan-Yiu and David (2017) studied about theperformance of Special Economic Zones andExport Processing Zones as economicdevelopment generators in Asian continentcontext. They suggested there are manyconcepts of Free zones like export processingzones (EPZs), custom bonded warehousesor factories, free ports, special economiczones etc. They evaluated the achievementsof SEZs and EPZs in terms of attracting FDI,Transfer of Technology, earning Forex,


3

employment generation, domestic linkagesand regional development. They furtherconcluded that the Asian countries face acommon problem of male-female workforceration, inadequate infrastructure support,indigenous labour force, low standards ofmanagement, inefficient governmentadministration etc. They finallyrecommended that despite of huge variationin regional and cultural variations in thesuccess of Special Economic Zones or ExportProcessing Zones, the Asian governmentsare adopting EPZs and SEZs for enhancingexports and sustainable economic growth.

Magda et. al. (2017) studied about theinvestment and employment in 379 polishcountries during 2003 - 2013. They haveprepared data models for Polish SEZs. Theyconcluded that there is a strong positiveimpact of employment on home and hostcountry. The correlation between SEZ andinvestment is positive but mediocre. Theyfinally recommended that there is a need forchanging in the estimation methods forsetting up on SEZs.

Jha (2018) suggested that due to ease in termsof facilities and clearance the exports fromSEZs increased by 18 percent in the FY 2017-18. This increase in the export value wasregardless of DDT (Dividend DistributionTax), MAT (Minimum Alternate Tax) and till2020 the tax benefits are going to end.Government is planning to remove theseschemes from SEZs and EOUs.

According to The Indian Express (June 2018)about the challenges, models, additionaltaxes and unutilized land a study on SEZsuggested that more than 25000 hectaresland is still unutilized. Similarly, domesticsales by the Special Economic Zones facinga disadvantageous situation because of lackof support by the state government,ineffective role of single window clearanceprocedure and payment of full custom duty.He further suggested another challenge ofexistence to multiple models of these types

of economic zones like costal economic zone,national investment and manufacturingzone, Special Economic Zones, Food Parkand textile parks etc. State Governments arenot that much supportive if it in context withthe SEZs.

OBJECTIVE

To study the export performance ofSEZ Pithampur and Export OrientedUnits (EOUs) located in Mandideep.

HYPOTHESES

H01: There is no significant impact of Exportsfrom Pithampur SEZ on India’s total exports.

H02: There is no significant impact of ExportOriented Units (EOUs) located in Mandideepon India's total exports.

The Study: The study undertaken isanalytical in nature based on facts and figures(Trade figures) collected from the website ofcommerce ministry, state government’swebsite etc. The study is an attempt toanalyze the performance of Special EconomicZones in India with reference to Indore(Mandideep and Pithampur) MadhyaPradesh, India. The study has proven itsvalidity on the ground of available literatures.The study explores positive aspects ofExports from the Special Economic Zones aswell as from the Export Oriented Units(EOUs) located in Domestic Tariff Area ofIndia. The exploration and evidences ofstudied phenomena gives betterunderstanding and responsible factorswhich are affecting exports from the countryand helps researchers to carry relevantresearch issues. The study is primarily basedon secondary data collected from variousgovernment websites.

There are three working Special EconomicZones located in Madhya Pradesh, all threeare located in Indore but only Pithampur SEZis working after the announcement of SEZAct, 2005. Hence, we have considered SEZ

A Study on Export Performance of Special Economic Zones SEZs and Export Oriented Units (EOUs) ...

4

Pithampur for the study where as there aremany Export Oriented Units located inMadhya Pradesh but in Mandideep thenumber of EOUs is highest, hence, we havetaken EOUs located in Mandideep for thestudy. The comparison between an EOU andSEZ is done on the basis of government’spreferences and exemptions given. Below arethe guidelines of government for EOUs andSEZs:

The Sample: The research study has takenthe export performance of SEZ Pithampurand EOUs of Mandideep (Madhya Pradesh,India) of last 10 years for analysis.

Tools for Data Collection: Data has beencollected from the official and non-officialsources such as websites of Ministry ofCommerce, Inland Container Depot, SpecialEconomic Zone (Indore), ICD Pithampur andICD Mandideep, AKVN, Madhya Pradeshand various companies situated inMandideep.

Tools for Data Analysis: The data analysisfor the Present Study was done usingregression.

Hypotheses Testing and Result Analysis

H01: There is no significant impact of Exportsfrom Pithampur SEZ on India’s Total exports.

Here the null hypothesis H01 stands rejectedas the p value is found to be 0.032 < 0.05(Standard Significance Value) which revealsthat there is a significant impact of Exportsfrom Pithampur SEZ on India’s Total Exports.The test result is found significant at the 5percent level of significance or at 95 percentlevel of confidence (Table 2).

The regression result in Table 1 reveals thatthe value of r is 0.676 which shows that thereis average correlation between Exports fromPithampur SEZ on India’s total exports. Theresult also reflects degree of relationshipbetween exports from Pithampur SEZ andIndia’s total exports which is said to beaverage as r = 0.0676 for exports from

Pithampur SEZ against India’s total exports(Table 3). Therefore, the study assumes thatthere is a significant impact of exports fromPithampur SEZ on India’s total exports withaverage correlation between both thevariables. Further, the study proves that dueto the average correlation among both thevariables (Table 1) as the value of r2 wasfound to be 0.457.

H02: There is no significant impact of ExportOriented Units (EOUs) located in Mandideepon India's total exports.

Here the null hypothesis H02 stands acceptedas the p value is found 0.279 > 0.05 (StandardSignificance Value) which reveals that thereis no significant impact of Export fromExport Oriented Units (EOUs) located inMandideep on India’s total exports (Table 5).

The Regression result in Table 4 reveals thatthe value of r is 0.605 which shows that thereis average correlation between export fromExport Oriented Units (EOUs) located inMandideep on India’s total exports. Theresult also reflects degree of relationshipbetween export from Export Oriented Units(EOUs) located in Mandideep on totalexports which is said to be average as r =0.605 for export from Export Oriented Units(EOUs) located in Mandideep against India’stotal exports (Table 6). Therefore, the studyreveals that there is no significant impact ofexport from Export Oriented Units (EOUs)located in Mandideep against India’s totalexports with a average correlation betweenboth the variables. Further, the study provesthat due to the average correlation amongboth the variables 0.366 units of total exportsfrom India will increase as an increase in aunit of export from Export Oriented Units(EOUs) located in Mandideep, as the valueof r2 was found to be 0.366 (Table 4).

DISCUSSION AND CONCLUSIONIndia was one of the initial country whichrecognized the importance and effectivenessof EPZs and SEZs for increasing exports. The


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first EPZ of Asia was established in Kandla(Gujarat) for overcoming the shortcomingsfaced by Indian Exporters in-terms of difficultrules and regulations, multiplicity of Controlsetc and for overcoming from fiscal regime.The SEZ policy in India was announced inApril 2000, and the main aim for announcingthis policy was to make Special EconomicZones an engine for economic growth for thecountry supported by high qualityinfrastructure, tax benefits and many more.Sharma (2009) examined that the SpecialEconomic Zones had witnessed manygenerations of investments, exports andemployment over a period of time. Heconducted a survey for identifying the issuesand efficiency of SEZs and their expectationswith reference to the modification andformulation of the government policies. Thissurvey revealed that the progress in the fieldof effective functioning of the SpecialEconomic Zones the expected advantageshad not been reaped yet. There were somereasons like global slowdown, fall in themarket demand, lack of skilled manpoweretc were accountable for slow growth in theperformance of SEZs. Later, it was found thatexecuting in Domestic Tariff Area (DTA) maybecome more advantageous as compare tooperating functions within Special EconomicZones particularly after withdrawal ofMinimum Alternate Tax (MAT) exemption.Rahoof and Arul (2016) evaluated theperformance of Special Economic Zones inIndia, government initiatives like taxexemptions, rebates etc for improving thepolicy and increasing the performance ofSEZ. They found in their study that eventhough the SEZs are limited in some sectorsand states but they extent to all over thecountry where there was scope and chancesfor balanced regional growth and there wasa scope of employment generation.Exports from Pithampur SEZ has increasedby 45 percent in 2018. DevelopmentCommissioner of Indore SEZ Mr. J.M. Guptasaid due to some leading pharmaceuticalfirms exports remained excellent from the

region. He further said with enhancementof production activities and rise in exportsthe employment opportunities in the regionwill also increase.Desai (2006) suggested that the undoubtedlythe Special Economic Zones are increasingthe volume of International Trade for thecountry and also is a large source of earningforeign exchange through Foreign DirectInvestments. Gupta (2015) evaluated theexport performance of SEZs in India andfound during 2001 – 2014 the exports fromIndia has grown drastically. He alsoconcluded that there was a significant andcontinuous increase in the SEZ Exports fromIndia, and also the share of India’s SEZexports in total exports from India has alsoincreased. He further discussed that the SEZsalso playing a very important role inattracting foreign as well as domesticinvestments in employment generation.Another researcher Khurud (2013) alsoexamined the impact of SEZ on India’sExport. The study revealed that SpecialEconomic Zones are playing very importantrole in export promotion of India. A rapidincrease in exports from SEZ has beencompared with Country’s total exports. Thisstudy further reveals when the whole worldwas facing the problem of global recessionIndian SEZ recorded the growth of 121percent in 2009-10.Our study reveals that there is a significantimpact of exports from Pithampur SEZ onIndia’s total exports. There are 50 workingunits situated in SEZ Pithampur which arecontributing in SEZ Pithampur exports. Herethe null hypothesis stands rejected as the pvalue is found less than 0.05. and we canconclude that there is a significant impact ofExports from Pithampur SEZ on India’s totalexports. The regression analysis reveals thatthe value of r is 0.676 which shows a averagecorrelation between both the variables.Hypothesis H02 stands accepted in our studyand reveals that there is no significant impactof exports from Export Oriented Units

A Study on Export Performance of Special Economic Zones SEZs and Export Oriented Units (EOUs) ...

6

(EOUs) located in Mandideep on India’sTotal Exports. There are only seven 100percent working Export Oriented Unitssituated in Mandideep contributing toExports. The study also reflects degree ofrelationship between Export from ExportOriented Units (EOUs) located in Mandideepon total Exports and r value was found to be0.605 for Export from Export Oriented Units(EOUs) located in Mandideep against India’sTotal Exports. Further, the study proves thatdue to the average correlation among boththe variables 0.366 units of Total Exports fromIndia will increase as an increase in a unit ofexport from Export Oriented Units (EOUs)located in Mandideep, as the value of r2 wasfound to be 0.366.

RECOMMENDATIONS

Focus on few sectors only: Sector wisecomposition of SEZs indicates thatthere is a convergence of SEZs in thecategories of IT/ITES in India.TheMinistry of Commerce & Industryshould approve less number of SEZsin this sector, so as to give properrepresentation to other categories ofSEZs in the Indian economy.

Monitoring: There should be ofproper monitoring and reviewing ofactivities and performance of SEZs.

Performance: SEZ which are locatedin already developed area, wherethere are higher chances of pursuingagglomeration, are found to be moresuccessful as compared to thosewhich are located in semi orundeveloped areas.

Technology: There is wide scope forhuman capital formation andtechnology upgrading in the zone, itis, therefore, important for thegovernment to play a proactive rolein strengthening these effects.

Environmental, Social and HealthImpact: SEZ increased burden onnatural resources and environmentcausing ecological imbalance.

Therefore, Government has to ensurethat all the required environmentalnorms are met before approval forsetting up units in SEZs.

References

Aggrawal, A. (2016). Special Economic Zones: Revisiting thePolicy Debate, Economic and Political Weekly, 41 (43).

Aggarwal, A. (2006). Performance of Export Processing Zones:A Comparative Analysis of India, Sri Lanka and Bangladesh,Journal of Instaflag Institute, 30 (1).

Dhawan, U. and Biswal, B. (1999). Re-examining Export LedGrowth Hypothesis: A Multivariate Co Integration Analysisfor India, Applied Economics, 31, 525-30.

Khurud, B. S. (2013). Export Performance of SEZs In India,IJER, v4i4, 01-05.

Kwan-Yiu, W. and David, K. Y. C. (2017). Export ProcessingZones and Special Economic Zones as Generators of EconomicDevelopment: The Asian Experience. Geografiska Annaler:Series B, Human Geography, 66 (1).

Rahoof, A. T.K. and Arul, P.G. (2016). An Evaluation of SpecialEonomic Zones (SEZs) Performance Post SEZ Act 2005.Universal hournal of Industrial and Business Management, 4 (2),44-22.

Shrivastava, A. and Panga, M. (2017). A Study on ExportPerformance of India with Reference to Special EconomicZones. International Journal of Management, 42-48.

Bibliography

Government of India. (2015). Government of India, Ministryof Commerce, Annual Reports. Delhi: Govt. of India.

Nishith Desai Associates (2006). Report on Special EconomicZones–An Indian Perspective, 93-B Mittal Court, NarimanPoint, Mumbai-400021, India.

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https://www.indiainfoline.com/article/news-top-story/economics-for-everyone-special-economic-zones-sez-115071300175_1.html.

http://www.maritimegateway.com/exports-pithampur-sez-rise-45/

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http://sezindia.gov.in/writereaddata/pdf/factsheet.pdf

http://www.tradingeconomics.com/india/exports

Jha, D.K. (2018). Export from Special Economic Zones jumped18% in FY18, Business Standard, https://www.business-standard.com/article/economy-policy/export-from-special-economic-zones-jumped-18-in-fy18-118042700088_1.html,date: 10/06/2016, time: 18.05.

The Indian Express https://indianexpress.com/article/business/business-others/major-challenges-in-special-economic-zones-multiple-models-unutilised-land-and-additional-taxes-5000292.


7A Study on Export Performance of Special Economic Zones SEZs and Export Oriented Units (EOUs) ...

8

ABRIDGING GENDER GAP IN INTELLECTUAL PROPERTY

Arushi Gaur Chauhan*, Swati Rai**

Although women and men both contribute to society by their valuable innovations and creations,but women still face gender disparity in the Intellectual Property sector, especially in the filed ofpatenting. One of the major reasons for this gender gap in the IP sector is the lack of womenparticipation in Stem Education. Though there are examples of successful women innovatorsand inventors, however, such names are seldom heard in the IP sector which is predominantly amale-dominated sector. Studies indicate that there has been progress in the rate of PatentCooperation Treaty (PCT) application filed by women, but if the current progression rates aremaintained, then gender balance in PCT patent ûlings will be observed not before 2080. Thispaper explores the social, cultural and economic reasons that discourage women inventors tocome forward. Thus, in order to bring gender equality and to promote women empowerment inIP sector, international organization as such World Intellectual Property Organisation (WIPO)has initiated myriad programmes and campaigns.

Keywords: Intellectual Property, Patent Cooperation Treaty (PCT), Gender Gap, WorldIntellectual Property Organisation (WIPO).

INTRODUCTION

I think one of the most important things we shouldbe teaching young girls today is leadership. It issomething that has been lacking in young girls andwomen for a very long time – not because we don’twant to but because of what society has labeledwomen to be. I think we are the most powerfulbeings in the world, and that we should be givenevery opportunity. And that is what we should beteaching these young girls – to take up space.Nothing is as important as taking up space insociety.”

- Zozibini Tunzi, Miss Universe 2019

Women need transformational change tobring them at parity with men. According tothe Global Gender Gap Report 2018 from theWorld Economic Forum no country hasachieved parity with regard to gender gapin Intellectual Property areas. Looking at thecurrent scenario, it is estimated that it will takeyears to bring men and women at parity,though both are equally capable ofleadership, especially in the field ofIntellectual Property. Thus, bridging the

gender gap in Intellectual Property is theneed of hour.

Women constitute about half of the totalpopulation of the world and has contributedcountless innovations and creations. Byinnovation, we mean new products or newways of doing things, and by the creativitywe mean new forms of original artisticexpression as portrayed, for example,in songs, books, pictures, films and otheremerging media. However, the main concernis bridging the gender gap in IP i.e. toencourage women for more innovationand creativity so as to bring them at parwith men and to ensure that they gain a fairreward and recognition for their work(Burk, 2018).

Gender Disparity in Creativity andInnovation

The importance of Intellectual PropertyRights lies in the fact that it prevents othersfrom copying or using IP rights of the holderwithout his/her permission. Thereby, suchrights give privilege to the holder(s) to receive

* Research Scholar, Barkatullah University, Bhopal.** Assistant Professor, Department of Law, Prestige Institute of Management and Research, Indore.


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economic reward for their creation andinnovation. Such economic benefitencourages other people to create furthercreations and innovations.

Irony is that there is a huge gender gap in IPsector because very less number of womenpursue career in science, technology,engineering and mathematics (STEM). Thiscan be corroborated by the statement ofSudha Murthy, the Chairperson of theInfosys Foundation, where she stated thatshe was the only female student in a batchof 599 men during her engineering college.Studies have also shown that just 30 percentof the world’s researchers are womenbecause women in STEM fields are less intopublication and are paid less for theirresearch (Martinez, 2016). Thus, theirprogress curve is not upward as compare tomen.

Thus, to reduce the gender gap in IntellectualProperty Rights, we must identify thequalitative factors that obstruct anddiscourage women from pursuing careers inSTEM fields in order, for the women tocontribute to the development of the society.

Women in Intellectual Property Sector inIndia

There is no profession which is not gender-specific. There are many women IP lawyersthat represent their clients in IP mattersbefore the Registrar or Controller (Nation,2018). However, this is only one side of thestory as these clients are mostly male leadingindividuals or corporates. However, when itcomes to filing of Patent, there are still veryfew filling which is done by an organizationlead by women or individual women. IPsector in India has a very poor record whenit comes to women dealing in intellectualproperty sector. Few examples of exemplarywomen are:

Kiran Mazumdar Shaw, Chairmanand Managing Director, BioconLimited: She is often graced by names

like India’s First Lady of Biotech, theMother of Invention, The BiotechQueen. She is considered as a torch-bearer for a biotechnology industry inIndia. She has emphasized theimportance of IP in her business asIP guided Biocon’s R&D andcommercialization strategy byenabling the protection of theirinventions and innovation (Jewell,2018). This has resulted in buildingcredibility for her work. By usingWIPO’s Patent Cooperation Treaty(PCT), Biocon has patent protectionin more than 150 countries through asingle international patentapplication.

Dr. Indira Hinduja, HonoraryGynecologist, IVF and InfertilitySpecialist: She is officially credited todeliver India’s first test-tube baby onAugust 6, 1986. She even pioneeredthe Gamete Intrafallopian Transfer(GIFT) Technique and OocyteDonation Technique which has beenpatented.

Dr. Suman Sahai, FounderChairperson, Gene Campaign. Shewas awarded the Padma Shri and theBorlaug Award for “OutstandingContribution to Agriculture and theEnvironment”. She is the founderChairperson of the NGO GeneCampaign which is a leadingadvocacy and research organization.The Campaign aimed to addressissues related to food, nutrition andrural livelihood across the country. DrSahai is the brain and the brawnbehind the patent campaign forAzadirachta Indica (Neem) andTurmeric (Haldi).

With these few renowned names of womenin the IP sector the fact remains that themajority of creations and innovations bywomen go unnoticed or are circulated

Abridging Gender Gap in Intellectual Property

10

anonymously, especially if the creation orinnovation is from the informal sector. Aclassic example of the exploitation oftraditional Intellectual Property Rights ofwomen can be seen in the Kantha work. It isa traditional Bengali embroidery practiced bythe rural women of West Bengal andBangladesh. The expertise is passed by onegeneration to the next. Since last decade, withthe advancement of fashion designing,Kantha work is used by myriad fashiondesigners on apparel and accessories.However, the irony is the original creators,that is the rural women population, receivesmeager remuneration and noacknowledgment for their creativity and art.

Similar scenario is with Kutch embroidery ofKutch District of Gujarat, Phulkariembroidery of Punjab, Toda Embroidery ofTamil Nadu etc. Madhubani Paintings isanother good example of infringement ofGeographical Indication (GI). Thesevegetable dyed paintings depict stories fromthe epics of Mahabharat and Ramayan. Thepaintings have been grated GI mark;however, the availability of counterfeitMadhubani paintings in the market infringesGI rights of the women artists.

Thus, women not only in STEM fields butalso in the informal sector face either non-recognition or infringement of IntellectualProperty Rights. Some are unaware of theirrights while others are financially unstableto initiate any legal battle. Therefore, thisproblem is not limited to women in anyparticular sector, but the women in otherfields of IPR like copyright, patents,traditional knowledge, geographicalindication etc. also face disparity in gettingthe due reward for their work.

Intellectual Property Rights and GenderGap

The World Intellectual Property Organization(WIPO) dedicated the year 2018 to promotethe empowerment of women. This was the

campaign to encourage women and girls intechnical and creative fields and emphasizeIP support in their innovations. As per WorldIntellectual Property Indicators 2018 byWIPO, the participation rate in PCTapplications by women inventors hasincreased. In 2017, 31.2 percent of PCTapplications contained at least one womaninventor, which is a considerably higherfigure than the 22.1 percent recorded in 2003.In terms of volume, the total number of PCTapplications with at least one womaninventor has almost tripled, from 24,004 in2003 to 68,270 in 2017. This shows someprogress in bridging the gender gap in theIP sector as women have increased theirparticipation from 17 to 29 percent (Martinez,2016). Despite efforts to bring women at parwith men, the gender gap persists,particularly in patenting (Burk, 2018).Furthermore, there are studies whichindicate that the women who are already inSTEM fields engaged in the patent systemare far less than their male counterpart.

Nevertheless, women still have a long wayto go to be recognized at par with men.Women still struggle to get equalopportunities and equal reward for theircreativity and innovation as compare to theirmen counterpart.

CONCLUSION AND SUGGESTIONS

In order to shorten the gender gap in the IPsector, the foremost important thing is tobring change in the attitude of our societytowards women. As per the societal normsscience is for boys and girls are made for lessintellectual subjects. This type of attitudebrings a lack of interest and low confidencein young girls to pursue STEM fields. Issueof “glass ceiling” is another problem thatneeds to be addressed to bring parity amonggender in IP sector. Further lack of legalknowledge with regard to intellectualproperty is also a major concern. Afterconsidering all these challenges and theneed to bridge the IP gender gap,


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government, society, internationalorganization and individuals should initiatecampaigns to encourage and promotewomen innovations and creations.

Webliography

Burk, D. L. (2018). Bridging the Gender Gap in IntellectualProperty. Retrieved from https://www.wipo.int/wipo_magazine/en/2018/02/article_0001.html.

Jewell, C. (2018). From Brewing to Biologics: Biocon’s KiranMazumdar-Shaw Transforms Global Health. Retrieved fromWIPO Magazine. Retrieved from https://www.wipo.int/wipo_magazine/en/2018/02/article_0005.html.

Martinez, G. R. (2016). Identifying the Gender of PCTInventors. Retrieved from https://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_33.pdf.

United Nation, (2018). Innovation, Creativity and the GenderGap, Gender Gap Report, World Intellectual PropertyOrganization. Retrieved from https://www.wipo.int/ip-outreach/en/ipday/2018/innovation_ creativity_ gender_gap.html.

Abridging Gender Gap in Intellectual Property

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ATTITUDE OF TEACHERS TOWARDS TEACHING PROFESSION: ACRITICAL REVIEW

Geeta Jain*, Manisha Singhai**, Khushboo Makwana*, Shan Malhotra*, Divya Tiwari*

Studies have proven enough number of times that attitudes drive results at any work place andattitude can be categorized as positive or negative. It is just the translation of feelings to behavior.Positive attitude means conveying confidence, support and enthusiasm in one’s style of deliveryas a facilitator and hence setting a stage for learning that is conducive enough. The role ofclassroom climate is crucial, and it is the responsibility of a teacher to foster a positive learningenvironment so that maximum output is derived from students. There are many factors thatinfluence one’s behavior. Attitude is definitely not a fixed factor of one’s personality; it canclearly be transformed. This theoretical research paper aims at presenting the conclusion ofreview of various studies done by authors on the attitude of teachers towards teaching.

Keywords: Attitude, Teachers, Teaching, Profession.

INTRODUCTION

Attitude

McMillan (2000) said that attitudes are mentalpredispositions which can be positive ornegative. As performance and attitudes aredirectly in proportion with performance ofteachers (Trivedi, 2011), some teachers haveaffirmative job orientation (Mehmood et. al.,2013) and some of them have unfavorablejob adaptation (Maliki, 2013) about theteaching profession leaning on the attitudesthey possess about the profession.

Attitudes have thoroughly been indicated toas ‘the most distinctive and indispensableconcept’ in the area of social psychology(Allport, 1935). Thurstone (1931) defined anattitude as “the affect for or against apsychological object”. According to Allport(1954), attitude is “a mental and neutral stateof readiness, organized through experience,exerting a directive or dynamic influenceupon the individual’s response to all objectsand situations with which it is related.”

Authors such as McGuire (1989) and Wood(2000) concluded that attitudes are build and

illustrated at three elemental extensions:cognitive, affective and behavioral. Krosnickand Petty (1995) said that robust attitudes arethose that abide change in the face of attack,endure over long spans of time, andendeavor a pronounced impact of thoughtand behavior, whereas, feeble attitudedisplays none of these attitudes.

Teaching

The mechanism of most of the living beingswith limbs is similar, oxygen being the mostimportant element of survival. Then what isthe difference between humans and otherbeings? The ability to use brain is what setsus apart and what accelerates our existence?Education is the answer. Education makesone aware and is responsible for the growthof an individual, family and eventually thecountry.

Education helps us achieve knowledge,status, skills, beliefs, values, status,recognition and much more. It helps anycountry achieve a balanced socio-economicstatus. Education begins at on stage at homeand is a never ending process. Education

* Assistant Professor, Prestige Institute of Management and Research, Indore.** Associate Professor, Prestige Institute of Management and Research, Indore.


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empowers, improves the quality of life, helpdevelop personality and attitude. Thechances of getting a good job enhances andthe benefits are countless.

The channel between education and betterhuman beings is the teacher. A teacher is aselfless being who has the efficiency andcompetence to shape future leaders. Theyimpact the lives of many and pose as aninspiration and have the power to changelives for better. Teaching no doubt is a difficultjob, and this profile is so exposed thateveryone takes the advantage of making anopinion about this profession. Stability issomething that is introduced by a healthyteacher-student relationship. A teacher iscompassionate towards their students,understands their personal lives andappreciates their academic goals andachievements.

Attitude towards Teaching Profession

The positive attitude one possess towardshis/her work increases the chance of successin any endeavor and not only in teaching.To have a positive attitude is imperative tosucceed in any profession. It definitelymakes you resilient and much happier atwork. Healthy attitude helps to be morecreative, creativity being the essence ofteaching. The advancement of any nation isdependent on teachers, so it is important todisplay a positive attitude. Teaching is anoble profession and is definitelyprogressive. Attitude that a teacher possessesdetermines expertise and hence is theimportant facet of any line of work. Teacherplays an important role of a friend,philosopher and guide and, hence, is givena higher position than parents.

Teachers willingly take the onus of modelingand developing good citizens who becomethe pillars of a strong nation. They shouldcreate a better learning environment with theuse of various new teaching methodologiesand ensure to make the climate of learning

conducive, enriching and contributive whichdefinitely comes only if one maintains afriendly and right attitude towards teaching.To have the balanced attitude for teachingcan establish exceptional learningenvironment for students, which canguarantee that students are ready to take onthe bigger challenges when they step out indifferent arenas of life and are announcedsuccessful. Teachers are indispensable partof any student’s lifecycle, to secure the futureof architects of the nation quality teaching isquintessential. Teaching being the oldestprofession is no more attractive for the youtharound now a days.

Reasons Why Youth Refrains From TakingUp Teaching as Profession

As a teacher or a facilitator the work hasintensified over the years and the dimensionof delivery has multiplied many times, withbare minimum extrinsic rewards. Next beingthe limitation installed on the creativity andflexibility with the curriculum and thetransmission of the information, an assignedpattern becomes the sacrosanct, withoutleaving any scope for experimentation.

Also, the parents have become quitedemanding due to which the answerabilityof the teachers have increased multifold.Therefore, the number of youngstersendorsing teaching as a profession hascollapsed over the years.

However, there are many who are motivatedwith intrinsic factors and have zeal to makea difference to the society and world and arestill keen to take up this profession.


Odike and Nnaekwe (2018) established thatprimary and secondary school teachers withtheir attitudes and unfair behavior aresomewhat liable for meager approach ofundergraduate non education students ofPrivate Universities in Enugu metropolis.Hence, clearly implicating on why these

Attitude of Teachers Towards Teaching Profession: A Critical Review

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students look down on their counterparts inthe field of education. Sivakumar (2018)clearly states that teachers do haveaffirmative bent of mind towards teachingprofession and greatly aligned asceticapproach. The subsample of the study alsorevealed that there is not much differencebetween teaching profession and selfconcept. However, there is no link betweenattitude towards teaching profession and selfconcept of the teachers.

Islam and Ansari (2018) established from thestudy that male teachers have less favorableattitude as compared to female teachers.B.Ed. trainee teachers exhibit a morefavorable attitude towards teaching ascompared to M.Ed. trainee teachers. B.Ed.female trainee teachers have showcased amuch more positive attitude in contrast tothe male trainee teachers. M.Ed. male traineeteachers display more favorable attitude ascompared to female teachers.

Srilatha (2017) found a momentous differenceamongst the entry and exit of studentteachers towards teaching profession in caseof high attitude association. There was nodifference found in case of moderate and lowattitude groups. Significant difference basedon gender was also seen between entry andexit attitude of student teachers.Management, methodology and educationalqualification areas also witnessed a differenceamong entry and exit attitude of studentteachers. Female students of governmentcolleges and methodology also exhibited asignificant difference between the exit andentry attitude of student teachers. He alsoclaimed that qualification students studyingin private colleges did not influence thedifference between the entry and exitattitudes.

Sudhakar and Reddy (2017) concluded thatteachers possess a positive attitude whileteaching and a teacher’s attitude is a majordeterminant of scholastic success and lesson

participation. Teachers are by and large selfmotivated and are enthusiastic to participatein school’s academic activity. Soibamcha andPandey (2016) advised that there is nocompelling contrast in attitude betweenmore accomplished and less qualifiedteachers. More competent teachers (59percent) looked to have more encouragingapproach towards guidance craft than thatof less qualified (41 percent). He also said thatthe age of teachers also did not contribute tothe attitude towards teaching. 59 percent ofthe educators have more positive attitudethan that of the older teachers that is 41percent.

Rao et. al. (2015) found that students ofeducation have a positive attitude towardsteaching profession than the students ofother courses, hence, support can beextended to students from non teachingstream to develop a favorable attitude.Contribution from male and female teachershave been found to be same. The study alsoadvises to analyze other demographicfactors. Chakraborty and Mondal (2014)mentioned and analyzed the attitudes of1032 prospective teachers, with reference tothe gender and as per the research did notfind any major difference between theattitudes of male and female teachers. Inrespect to the academics also there was nodifference between science and arts students.

Oanite and Omolara (2015), through theirresearch revealed that Social Studies teachersusually demonstrate bad attitude towardsteaching this subject. The teachers do notexperiment with the delivery style andteaching methodology, hence, making itmonotonous. There is dearth of enthusiasm,absence of the mastery of the subject andirregularities in attending class contributes tounfavorable behaviors. Few other reasonsthat make the teachers of social studiesdisplay poor attitude are delay in thepayment of the salaries, poor support fromstudent’s parents and lack of motivation.


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Bhargava and Pathy (2014) studied nontribal- science group, where they roped intwenty one females and seven males tofigure out their attitude towards teachingand the results revealed no significantdifference in the attitudes. For Social Sciencestream also no compelling difference wasfound between non tribal male and female.Though, for tribal student teachers in Scienceand Social Science stream there was asignificant difference observed between maleand female teachers. There was also relevantdifference found between tribal and nontribal female student teachers of sciencestream. Science and Social Science streamanalysis did not reveal any momentousdifference between the tribal and non tribalmale student’s attitude towards teachingprofession. Also, no significant differencebetween tribal and non tribal female in socialscience stream was found.

According to Andronache et. al. (2014)positive talks to oneself can help developpositive outlook towards the teachingprofession. The teachers should be wellintegrated with the system, however,individual experience is a determinant of thedemonstration of attitude to itscorresponding attitude. Kassa (2014)explored the behaviors of students ofPostgraduate Diploma in Teaching (PGDT)in Ethiopia, with a sample size of 305 studentteachers on numerous variables. Attitudetowards teaching was mostly found to beunfavorable towards teaching profession.

David (2013) concluded that the teachingmaterial for social studies in particular, suchas text books and workbooks for bothteachers and students are not available inenough number and hence, impacts theattitude of teachers in secondary schools. Thenew curriculum also does not get updatedregularly, the standard of the books is notup to mark and the authors are not expert inthe field of social studies which cripples theeffective teaching and learning of this subject.

Parvez and Shakir (2013) pronounced thatthere is a momentous difference in theattitude of future teachers towards teachingbasis on the private and public institutes. Theattitude of female and male of teachers is notcharacterized by their gender. The attitudeof Muslim and Non Muslim teachers is notimpressed or influenced by their religion.The attitude of science and social scienceprospective teachers is stimulated ordetermined by their choice of streams.

Babu and Raju (2013) found a substantialdifference amongst the attitudes of femaleand male student teachers. There was aconsiderable and conspicuous contrastfound between the mathematics andbiological sciences teachers. Not much of adifference was acknowledged in theattitudes of students teachers in the area ofmath and physical sciences, social studiesand math, social studies and biologicalsciences, biological sciences and physicalsciences.

Maliki (2013) used a sample of 150 teachersand propounded that the female teacherswere more positive as compared to the maleteachers and that by and large the teacherspossessed negative attitude. According toLawal (2012) teaching is a profession that isreacted to differently amongst the parents,teachers and students. Teachers andstudents have a positive outlook in contrastto the parent’s outlook which is negative.

Temizkan (2008) concluded that teachers’profession is complementary to certainfactors such as enjoying their profession anddedication towards the same and discernthat their profession is important in all realmsof life, and that they need to develop andenhance their scope and perspective as ateacher. Lasek and Wiesenbergova (2007)performed a study on attitude towardsteaching profession. 136 third year preservice teachers to actuate the attitude ofteachers in premise of several variables wasdone. Pre service teachers whose parents are


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teachers and females displayed a morepositive attitude.

Osunde and Izevbigie (2006) reviewed 400secondary school teachers’ attitude towardsteaching profession and concluded thatextrinsic motivational factors not beingaddressed can lead to unfavorable attitudetowards teaching. Factors such as meagerwork condition, extensive negative force andteacher’s negative personal and professionalbehavior influences teacher ’s negativeattitudes towards the teaching profession.Vermunt and Verschaffel (2000) concludedthat workplace plays a crucial role in carvingteacher ’s attitudes towards teaching,especially the school principal’s behavior andthe tone of communication. He also opinedthat the social studies teachers do not havemuch of exposure as compared to theteachers of other subjects, hence, the attitudedisplayed by them is poor.

CONCLUSION

The famous Sanskrit Shloka “Guru Brahma,Guru Vishnu, Guru Devo Maheshwara”proclaims us to dignify teachers as Gods.There are several paths that lead to thedestination of becoming a teacher, one hasplethora of opportunities to hone andnurture the skills that one has for thisprofession. However, it is important to firstrealize one’s strength so that one can embarkupon the attainment of the goal to become ateacher. One of the key personality attributesone needs to possess is positive attitude.There are many key factors that influence theattitude and thus, command the successfactor in this field. As per various literaturereviews, it can be conferred that variousfactors (infrastructure, age, gender,experience etc.) play an important role in thedetermination of attitude one displays whileteaching. Also, as per the study of literaturethe teachers usually exhibit a positive attitudeand are self motivated to a great extent andtake ownership of their own developmentand up skilling as well. The teachers also

need to be rewarded appropriately to ensurethat they stay positive in this journey ofteaching.

References

Andronache, D., Bocos, M., Bocos, V. and Macri, C. (2014).Attitude towards Teaching Profession, Procedia Social andBehavioral Sciences, 142.

Babu, B. P. and Raju, T. J. M. S. (2013). Attitude of StudentTeachers towards their Profession, International Journal of SocialScience & Interdisciplinary Research, 2 (1), 2277-3630.

Bhargava, A. and Pathy, M.K. (2014). Attitude of StudentTeachers towards Teaching Profession, Turkish Online Journalof Distance Education – TOJDE, 15 (3), 27-36.

Chakraborty. A and Mondal, B. (2014). Attitude of ProspectiveTeachers towards Teaching Profession, American Journal of SocialSciences, 2 (6).

David, A.A. (2013). The Attitudes of Students towards theTeaching and Learning of Social Studies Concepts in Collegesof Education in Ghana, Research on Humanities and SocialSciences, 3 (9).

Islam, S. and Ansari, A. (2018). A Comparative Study ofAttitude towards Teaching Profession of Male and FemaleB.Ed. and M.Ed. Students of Aligarh Muslim University,International Journal of Research in Social Sciences, 8 (2).

Kassa, K. (2014). Attitude of Postgraduate Diploma in Teaching(PGDT) Student Teachers towards Teaching ProfessionEthiopian University College of Teacher Education, MiddleEastern & African Journal of Educational Research MAJER, 7.

Lasek. J and Wiesenbergova, S. (2007). Prospective Teachers’Attitudes to their Profession, The New Educational Review, 13(3-4), 129-136.

Lawal, B. O. (2012). Analysis of Parents, Teachers, and StudentsPerception of Teaching Profession in Southwest Nigeria, AsianSocial Science, 8 (1), 119 – 124.

Maliki, A. E. (2013). Attitude of Teachers’ in Yenagoa LocalGovernment Area Bayelsa State Nigeria, towards the TeachingProfession: Counselling Implications, International Journal ofResearch in Social Sciences, 2(2), 2307-227X.

Mehmood, T., Akhter, M., Ch, A. H., Azam, R. (2013). Attitudeof Prospective Teachers towards Profession-A Measure forInstitutional Development, International Journal of Asian SocialScience, 3 (11), 2363-2374.

Oanite, R.A. and Omolara, S.R. (2015). Teacher’s Attitudes: AGreat Influence on Teaching and Learning of Social Studies,Journal of Law, Policy and Globalization, 42.

Odike, M. and Nnaekwe, U.K. (2018). Influence of Teachers’Attitude towards Teaching Profession on Under GraduateNon-Education Students Perception of Teacher Education,International Journal of Academic Research in Progressive Educationand Development, 7 (4), 67-79.

Osunde, A. U. and Izevbigie, T. I. (2006). An Assessment ofTeacher’s Attitude towards Teaching Profession in MidwesternNigeria, Education, 126 (3), 462 – 467.

Parvez, M. and Shakir, M. (2013). Attitudes of ProspectiveTeachers towards Teaching Profession, Journal of Education andPractice, 4 (10), 172-178.


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Rao, C., Abasimi, E. and Kamran, M. (2015). ComparativeStudy of the Attitudes of Education and Non EducationStudents towards the Teaching Profession in GomalUniversity, Pakistan, International Education and Research Journal(IERJ), 4 (1).

Sivakumar, R. (2018). Teachers Attitude towards TeachingProfession in Relation to their Self Concept, Journal ofContemporary Educational Research and Innovations, 8 (3), 283-288.

Soibamcha, E. and Pandey, N. (2016). Attitude of Teacherstowards Teaching Profession, Global Journal of InterdisciplinarySocial Sciences, 5 (3), 49-51.

Srilatha, G. (2017). Differential Attitude of Student Teacherstowards Teaching Profession, International journal of ScientificResearch and Education, 5 (11).

Sudhakar, K. and Reddy, D. (2017). A Study on Attitude ofTeachers towards Teaching Profession, The International Journalof Indian Psychology, 4 (3), 98.

Temizkan, M. (2008). A Study on Turkish Teacher Candidates’Attitudes Towards Teaching Profession, Turkish Journal ofEducation Sciences, 6, 461-486.

Thurstone, L.L. (1931). The Measurement of Social Attitudes,The Journal of Abnormal and Social Psychology, 26, 249-269.

Trivedi, T. (2011). Assessing Secondary School Teachers’attitude Towards Teaching Profession, Journal of All IndiaAssociation for Educational Research, 23, 91-110.

Wood, W. (2000). Attitude Change: Persuasion and SocialInfluence, Annual Review of Psychology, 51, 539-570.

Bibliography

Allport, G. W. (1935). Attitudes. C. Murchison (Ed.), Handbookof Social Psychology (798 - 844), Worcester, MA: Clark UniversityPress.

Allport, G.W. (1954). The Historical Background of ModernSocial Psychology, G. Lindzey (Ed.), Handbook of SocialPsychology,1, pp. 3-56. Cambridge, MA: Addison-Wesley.

Krosnick, J. A. and Petty, R. E. (1995). Attitude Strength: AnOverview. R. E. Petty & J. A. Krosnick (Eds.), Attitude Strength:Antecedents and Consequences, 4, 1–24. Hillsdale, NJ, England:Lawrence Erlbaum Associates, Inc.

McGuire, W.J (1989). The Structure of Individual Attitudesand Attitude Systems, A. R. Pratkanis, SJ. Brerckler & A.GGreenwald (eds.). Attitude Structure and function. Hillsdale,NJ: Erlbaum.

McMillan, J.H. (2000). Educational Research: Fundamentals forthe Consumer, (3th ed.). New York: Longman.

Vermunt, J. and Verschaffei, L. (2000). Process-OrientedTeaching in R. Simons, J. Jos Vander Linden and Duff (eds).New Learing, Netherland: Kulwer Academic publisher.


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CAUSE RELATED ADVERTISEMENT: A STRATEGIC TOOL TOPREDICT THE CONSUMER’S PURCHASE INTENTION WITH

MODERATING ROLE OF WILLINGNESS OF CONTRIBUTION SIZE INWESTERN INDIA

Shah Suraj Manoj Kumar*, Mahendra S. Sharma**, Maurvi Vasavada***

Consumers may take cause related marketing positively if they feel that it is a way in which theyare getting satisfaction at very little or no extra cost. Concluding about the potential for acompany’s cause related marketing to affect consumer choice is difficult because existing evidenceis equivocal regarding the effectiveness of cause related marketing campaigns. In some studies,cause related marketing has been found to have a favorable effect on attitudes. This study triesto measure the effect of advertisement of cause related marketing strategically on attitude aswell as purchase intention of youngster in western part of India. This study also tries to find outthe moderating effect of willingness of contribution size. Single cross sectional research designadopted for the current study. Data analysis concludes that strategic aspect of cause relatedmarketing has the positive impact on the attitude towards the cause related marketing andattitude has the positive impact on the purchase intention. It was also concluded that willingnessof contribution size did not have any moderating effect on the relation between strategic aspectof cause marketing, attitude and purchase intention. Strategic fit has the indirect impact on thepurchase intention except mission fit. This research provides the useful implication to marketersas well as whole society providing more detail insight in to the concept of the Cause RelatedMarketing with in light of cause brand willingness to contribution size.

Keywords: Cause Related Marketing, Strategic Fit, Willingness to Contribute, ContributionSize, Purchase Intention.

INTRODUCTION

Cause-related marketing (CrM) initiativeshave become increasingly popular amongorganizations. This strategy impliessupporting a social cause to promote theachievement of marketing objectives(Barone, et. al., 2007). CrM implementationcan be undertaken in different forms (Guptaand Pirsch, 2006; Liu and Ko, 2011). One ofthe most common forms involves thedonation of a portion of the corporation’sprofits from each product sold to a cause. Inthis sense, CrM is defined as the process offormulating and implementing marketingactivities that are characterized by an offerfrom the firm to contribute a specified

amount to a designated cause whencustomers engage in revenue-providingexchanges that satisfy organizational andindividual objectives (Varadarajan andMenon, 1988).

In today’s competitive environment firmsare focusing on differentiation aspect wherethey are trying to gain competitive advantageby doing something unique. Cause relatedmarketing is considered as the majorparadigm shift in marketing activitiesespecially in FMCG sector. Cause-relatedMarketing (CrM) is a technique that makes asponsoring firm able to affiliate itself with acharity by donating a fixed sum money thatis “linked to customers’ engaging in revenue-

* Assistant Professor, Centre for Management Studies and Research, Ganpat University, Kherva, Mehsana.** Pro Chancellor and Director, Ganpat University, Kherva, Mehsana.*** Chairperson, Centre for Management Studies and Research, Ganpat University, Kherva, Mehsana.


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producing transactions with the firm”(Varadarajan and Menon, 1988). Companiesare focusing on cause related marketingnow-a-days, and it has emerged as animportant tool in corporate socialresponsibility.

Recent studies have begun to investigatewhen consumers are more likely to buy aproduct associated with a cause, and haveidentified product-cause fit as an importantvariable in the success of a CRM campaign(Ellen, et. al., 2000; Hamlin and Wilson, 2004;Lafferty, 2007, 2009; Pracejus and Olsen,2004; Trimble and Rifon, 2006). Conventionalwisdom suggests that a company shouldsupport a cause which is consistent with itsproduct image (i.e. a consistent fit betweenproduct and cause) (Barone, et. al., 2007,Hamlin and Wilson, 2004, Lafferty, 2007, 2009,Nan and Heo, 2007; Pracejus and Olsen,2004; Samu and Wymer, 2009; Trimble andRifon, 2006). Avon women’s products, forexample, have supported the Susan G.Komen Breast Cancer Research Foundationto strengthen Avon’s brand image. Since boththe target market for the products and thecause are related to women, the relation maybe described as a “tight fit” or “high fit”. Theconsistency between product and brand hasbeen identified as one of the important wayto obtain a fit that benefits the brand (Gray,2000; Trimble and Rifon, 2006). If it issuccessful in increasing sales of thecompany’s product, profit-driven motiveswould be the easy to infer with this type ofcampaign (Szykman, 2004). Brand-cause fitgenerated much debate in the literatureduring the past decade, defined as an overallassessment of the similarity betweencharacteristics of both concepts (Du, et. al.,2010).

This study examines the impact of theStrategic aspect of cause relatedadvertisement on the purchase intention.This study also tries to find out themoderating effect of the Willingness to

contribution size on the relationship of thestrategic fit, attitude towards theadvertisement and purchase intention. Thisstudy also finds out the indirect effect ofindividual dimensions of the strategic fit onthe purchase intention.


Consumers may take cause relatedmarketing positively if they feel that it is away in which they are getting satisfaction atvery little or no extra cost. Concluding aboutthe potential for a company’s cause relatedmarketing to affect consumer choice isdifficult because existing evidence isequivocal regarding the effectiveness of CrMcampaigns. In some studies, CrM has beenfound to have a favorable effect on attitudes(Brown and Dacin 1997; Ross, et. al., 1992;Tate 1995) and purchase intentions (Kroll1996; Murphy 1997; Ross et al. 1992; Sen andMorwitz 1996; Smith and Stodghill 1994).However, in certain other studies CrM hasbeen found to foster negative perceptionsabout a company’s motivation for engagingin such activities (Smith and Stodghill 1994).When properly executed, CrM helps inincreasing the sale of products. According toDuncan and Moriarty (1997), this means,among other things, tying the cause to theorganization’s mission, making it long term,not using it as a short-term tactic to increasesales, and understanding that the effects arenot always easy to measure and whatevereffects there are, normally through enhancedreputation, are very long term.

Ehrenberg (2000) argues that the role ofadvertising is simply to enhance brandattitudes; it is a prerequisite for determiningprior attitude, not only towards the brandbut also the cause. However, as therelationship between brand andadvertisement attitude has beendemonstrated empirically (Mitchell andOlson 1981; MacKenzie et. al., 1986), and inmore recent advertising research (Halkiasand Kokkinaki, 2014), regarding the

Cause Related Advertisement: A Strategic Tool to Predict the Consumer’s Purchase Intention with Moderating ...

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synergistic effect of brand-cause strategicalliances, when consumers perceive both asan overt connection, the meaning transfermodel proposes a transmission of emotionalresources from cause to brand (Hoeffler andKeller, 2002; Ellen et. al., 2006; Bigné-Alcañizet. al., 2009; Samu and Wymer, 2009);favorable attitudes towards a sponsoredcause lead to favorable attitudes towards asponsoring brand, triggered by creation ofnew emotional associations with the brand(Simmons and Becker-Olsen, 2006).

Benefits arising from cause related marketingdepend also on the donation size (Landreth,et. al. 2007, Polonsky and Speed, 2001). Hajjat(2003) says, for example, that a high personalinvolvement with the cause together with ahigh donation size has a higher positiveimpact on attitudes and intention to buy, inrelation to the reverse situation. Dahl andLavack (1995) and Webb and Mohr (1998)suggested that consumers have a tendencyto believe that the company exploits anonprofit organization if the donation issmall, compared to a larger donation.Landreth et. al. (2007) concluded that a smalldonation can lead to skepticism amongconsumers. Sincic Coric and KurnogaZivadinovic (2009) in the research conductedin Croatia, found that the donation size doesnot affect the consumers’ decision to changebrands for those participating in the cause-related marketing campaign.

Cause related marketing is defined as apractice in which company donates to a socialcause, using profits from sales of certaingoods (Larson et. al., 2007). Anotherdefinition of cause related marketing denotesthat it’s a commercial activity by whichbusinesses and charities or good causes forma partnership with each other to market animage, product or service for mutual benefit(Adkins, 2003). The rapid growth of CrM canbe attributed to the increasing demand forsocially responsible companies (Hoek andGendall, 2008).

The degree of brand-cause fit affects thecredibility of advertising campaigns andconsumers’ emotional perceptions (Buil et.al., 2012). When a firm incorporatesinformation about social-cause sponsoring inadvertisements, and consumers perceive thatthis support has a high degree of fit, suchcoherence reinforces the company’s image(Menon and Kahn, 2003). Co-brandingstrategic fit might contribute to greaterconfidence, thereby strengthening brandnotoriety and joint credibility (Hoeffler andKeller, 2002, Lafferty, et. al., 2004, Polonskyand Speed, 2001). As this study constructsan artificial, strategic, brand-cause alliance,exploratory analyses are used to determinewhich strategic fit variables from Zdravkovicet. al. (2010) generate positive synergies fromthe affective responses of advertising.

In the beginning, Brand-cause fit was ageneral concept, and the usual way ofmeasuring it was degree of fit such as adifferential semantic scale ranging from verygood fit to very bad fit (Hamlin and Wilson,2004; Simmons and Becker-Olsen, 2006).Later, it expanded to a multidimensionalscale, in which organizational features wereconsidered during measurement (Kuo andRice, 2015). Yuan et. al. (2011) consideredthree areas of matching internal consistencywhen fit occurred at the organizational level,external consistency when goods or servicesmet stakeholder demand and coherencewhen the activities of both organizationswere compatible. Kuo and Rice (2015)distinguish conceptual and perceptual fit.Conceptual fit refers to image andpositioning coherence between brand andcause, and perceptual fit is related to similarappearance and the same color. Anothermethod was to distinguish strategic andtactical adjustments (i.e. duration ofagreement). Zdravkovic et. al., (2010) haveproposed a strategic concept of fit, suggestingfive strategic types of adjustment – sloganfit, mission fit, target fit, promotion fit andgeographic fit.


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OBJECTIVE

To confirm the extraction ofconsumers purchase intention withwillingness of contribution byproposed (CFA) Model.

RATIONALE

Previous literatures clearly indicate thatCause fit on the purchase intention andattitude towards the advertisement. Manyresearch studies have been conductedabroad on cause related marketing andbuying purchase intention but there is aresearch gap where study is conducted byconsidering strategic fit as an advertisementdimension and willingness of contributionsize as the moderator in the relationshipbetween brand cause fit and purchaseintention. This study tries to fill the gapexplored through the review of the literature.In today’s competitive environment firmsare focusing on differentiation aspect wherethey are trying to gain competitive advantageby doing something unique. Cause relatedmarketing is considered as the majorparadigm shift in marketing activitiesespecially to promote the products. Here thepurpose is to contribute new findings to theemerging era of marketing.

Many researchers have conducted studyabroad on cause related marketing but veryfew researches have been conducted on thesaid topic in India. From the practicalcontributions perspective, current studyprovides how cause related marketing canbe used while drafting advertising strategies.From the managerial view point as well asview point of practitioners, corporate, societyand government, it is needed to provide astatistically proven model with reference tocause related marketing. This study willprovide useful information to same.

METHODOLOGY

The Study: The study is exploratory as wellas empirical in nature. Single cross sectional

descriptive research design method wasused for this study. Non-probabilityconvenience sampling Technique waschosen for this study. Non-probabilityconvenience sampling Technique waschosen for this study.

The Sample: The consumers who wereaware with the term Cause RelatedMarketing were considered as sample for thisstudy. Sample Unit is customers (Specificallyyoung adults- Age group of 18 to 35) whoare the purchasers of the personal careproducts. Sample size of 676 individualsconsumers were considered for this study(Table 1).

Tools for Data Collection: Data was collectedfrom primary and secondary sources.Primary data was collected through surveymethod using structured questionnaire.Brand-Cause Strategic Fit scale was adoptedfrom Zdravkovic et. al. (2010) and attitudetowards the Cause Related Marketing Scalewas adopted from Pham and Avnet (2004)and Purchase Intention Scale was adoptedfrom Putrevu and Lord (1994). Purchaseintention was used as the dependent variableand Strategic aspect of the cause relatedadvertisement inserted as the independentvariable. Study area was western part ofIndia i.e. major cities of Gujarat, Maharashtra,Madhya Pradesh, Rajasthan. Informationwas collected from various books, journals,websites, research papers and Journals.

Tools for Data Analysis: Regression,Confermatory Factor Analysis along withdescriptive analysis of data was done.

HYPOTHESES

H1: There is no significant effect of thestrategic fit on the attitude towards theadvertisement of cause related marketing.

H2: There is no significant effect of attitudetowards the advertisement of cause relatedmarketing on purchase intention.


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H3: There is no significant indirect effect ofthe strategic fit on the purchase intentioncampaign with reference to cause relatedmarketing

H4: There is no moderating effect ofwillingness of contribution size on therelation of strategic fit, advertisement of causerelated marketing and purchase intention.

RESULT AND DISCUSSION

Measurement Model

Figure 1 Measurement Model (CFA)

The constructs were subjected toConfirmatory Factor Analysis (CFA) to verifythat the manifest variables load upon theproposed constructs and are indeedindicative of these constructs. Thecombination of CFA and construct validityassessments allows the researcher to evaluatethe quality of their measures within ameasurement model prior to testing thestructural model. Maximum likelihoodestimation procedures were used to estimatethe parameter of the full measurement of themodel. It consists of the two first orders latentvariables namely Attitude towards the causerelated marketing and Purchase Intentionwhere one second order variable namelyBrand Cause Strategic Fit also used in themodel. Brand Cause Strategic Fit is measured

through five latent variables namely sloganfit (sf), promotion fit (pf), mission fit (mf),target fit (tf) and geographic fit (gf). Thereare total 21 indicators which measured thesaid latent variables.

RELIABILITY AND VALIDITY

Measurement model was run and factorloading was checked. Indicator sf1 has thelow factor loading (0.588) on Slogan fit latentvariable so it was removed from the furtheranalysis and measurement model run again.All the variables have the factor loading morethan threshold level 0.7. (Table 2)

It is important to find out internal constituentof the measurement prior to further analysis.Cronbach’s alpha coefficient of reliability canbe used to find out the reliability of the scale.Inter item correlation and Item to totalcorrelation is also used to find out how theitem is internally correlated and how it iscorrelated with the other items. According toNunnally (1978), Cronbach’s alpha valuemore than 0.70 indicate good level of internalconsistency.

Here, reliability coefficients are found to bemore than the standard value of 0.70 whichprovides the good construct reliabilities forthe constructed scales. (Table 3)

For the evaluation of the ReflectiveMeasurement Model, outer loading, averagevariance extracted (AVE) and compositereliability plays most important role.According to Joe F. Hair et al. outer loadingshould be more than 0.7 , AVE should begreater than or equal to 0.5 and CompositeReliability and should be greater than 0.7.Table 4 shows the quality measurement forthe model. AVE, composite reliabilityprovides the good model fit as all the criteriaare above the standard cut off.

If the variable’s square root AVE value ishigher than the estimated correlationbetween one and another variable, then thereis evidence to support an acceptable degree


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of Discriminant validity between thesevariables. The overall results from comparingsquare root AVE estimates to theircorresponding correlation estimates wereindicative of Discriminant validity amongthese variables. Discriminant Validity testshows how much variance is in the indicatorsthat are able to explain variance in theconstruct. As, square root of AVE is greaterthan Correlation, the model is having sounddiscriminant validity.

Table 5 reports that the overall chi-squarevalue which is 442.603 with p value 0.000,researchers have concluded that whensample size exceeds 200, chi-squareautomatically increases and hence, it can notbe considered as a main inferential parameter.

In such cases, other fit indexes are taken intoconsideration rather than the chi-squarevalue. Value of 2.732 for CMIN/DF indicatesexcellent fit for model. RMSEA and SRMR forthe model is 0.048 and 0.028 respectively,both are within the threshold level whichmake model excellent fit. CFI, TLI, NFI andIFI values also conclude that estimated modelis excellently fit with the proposed model.

Path Analysis

Figure 2 Path analysis

Figure 2 shows the impact of theindependent variables on the dependentvariables. Strategic fit has the positive effecton the attitude towards the advertisementwith the beta weight of 0.86. R square valuefor attitude towards advertisement is 0.74which indicate that 74 percent of the variancein the attitude towards the advertisementcan be explained through brand-causestrategic fit. Impact of the attitude towardsthe advertisement also has the positiveimpact on the purchase intention.Standardized beta of attitude on purchaseintention is 0.68 with the R square value of0.46. So it can be said that Attitude explains46 percent of the variance in the purchaseintention.

Multi-group Analysis

Multi-group is comparison of proposedmodel, where differences in path estimatesfor different sampled populations have beenrelatively naive. Often, researchers simplyexamine and discuss the difference inmagnitude of particular model pathestimates for two or more data sets(Thompson, et. al., 1994). Willingness ofcontribution size inserted as the moderatingvariables. Willingness of contribution size isthe categorical variable having two categoriesnamely high Willingness of contribution sizeand low Willingness of contribution size.Proposed model is run for the high fit sample(258 respondents) and low fit (325respondent) sample. High Willingness ofcontribution size indicates that brand causestrategic fit on attitude towardsadvertisement is 0.805 and regression weightof attitude toward advertisement onpurchase intention is 0.660. Where LowWillingness of contribution size indicatesthat brand cause strategic fit on attitudetowards advertisement is 0.896 andregression weight of attitude towardadvertisement on purchase intention is 0.681.

Comparision of the regression effect indicatethe very minor difference for both the model


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(Table 6). Nested model comparission alsoconferm that difference in both models is notstatistically signifcant at 5 percent level ofsignificant. Further it can be conclude thatWillingness of contribution size does nothave moderating effect on the proven model.

All the five dimensions of the brand causestrategic fit have the positive indirect effecton the purchase intention (Table 7). MissionFit does not have the statistically significantindirect effect on the purchase intention,where all other Fits have the significantindirect impact on the purchase intention.Slogan fit and target fit has the mostsignificant indirect impact on the purchaseintention with standardized beta weigh of0.294 and 0.185 respectively.

CONCLUSION

The main objective of the study was to findout the effect of the strategic fit on thepurchase intention. This study also tries tofind out the moderating effect of Willingnessof contribution size on the proposed model.This study concludes that brand-causestrategic fit has the positive and significantimpact on the attitude towards theadvertisement of cause related marketing.Attitude towards the advertisement also hasthe positive and significant impact on thepurchase intention of the youth. Multigroupanalysis concludes that Willingness ofcontribution size does not have thesignificant moderating effect on therelationship between brand cause strategicfit and purchase intention. Though studynoted that low Willingness of contributionsize lead to the stronger effect on purchaseintention compare to the high Willingness ofcontribution size. This study also concludedthat out of five type of brand cause strategicfit, all strategic fit except mission fit, has thesignificant indirect effect on purchaseintention.

IMPLICATIONS

The present study suggests manyimplications for marketers and companies.

This study will be useful to marketers as, theycan focus on brand cause strategic fit whichis an import factor for cause relatedmarketing so companies have to focus onthis aspect more. Addition to that slogan fitand target fit have the higher effect socompanies have to focus on slogan fit andtarget fit more accurately in cause relatedadvertisement. Demographic conclusionalso becomes very useful to the marketersand companies.

Here researchers has used SEM- StructuralEquation Modeling and CFA- ConfirmatoryFactor analysis which are considered as verypowerful statistical tools which gives morevalidity and reliability to findings. This studyhave added crucial literature in the existingone which will be useful to academician whohas to do further research with reference tocause related marketing.

Here it should be noted that the majority ofthe researchers are undertaken in developedcountries so this study can be considered asa value addition to the pool of existingliterature considering lack of research toinvestigate consumer’s purchase intentionwith moderating role of willingness ofcontribution size in western India.

According to the Indian companies Act, 2013,The “New Act”, CSR has been incorporatedas a legal requirement in India. Findings ofthe study will be beneficial to both charityorganizations as well as retailers to decidewhether to or not to engage in causemarketing.

As a part of CSR, the companies and brandswill be able to use this study to gain addedadvantage by considering cause relatedmarketing as CSR activity.

Findings of the study will be helpful tosociety as well considering that this findingwill lead to high involvement of companiesin cause related marketing activity with acampaign that will be more beneficial tosociety.


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Limitations and Further Scope of the Study

The study is limited to western India andspecific sample size. This study has a focuson strategic fit and Willingness ofcontribution size, future study can be doneincluding other variables like brand equity,loyalty etc. Demographic variables also canbe included as study variables andcomparative analysis can be done betweendifferent cities and countries as well.

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DUAL CAREER COUPLES: DEVELOPMENT OF CONCEPT MATRIX

Tanvi Paras Kothari*, Sameer Pingle**

Liberalization, privatization and globalization have changed the statistic profile of the workforce.More women enter the workforce and it results in the dual-earner family. This has changed thefamily structure of society from single earner families to dual-earner families, and now to dual-earner families or dual career couples. Women’s ‘ point of view has additionally changed fromonly homemakers to be career-oriented women. All these changes will bring new challenges forwork-life balance. This paper presents a review of literature relating to dual career couples/family, dual-earner couples/family, working couples etc. An integrative literature review wascarried out including an extensive literature search. A Systematic Review of literature, quantitativeand qualitative surveys and grey literature was reviewed which evaluate, describe and discussthe issues , challenges and lives of dual career couples/family, dual-earner couples/family, workingcouples. Based on the retained literature concept matrix was prepared. Finding from integratedliterature revealed consistencies in previous studies in terms of the concept studies for dualearner or dual career families. Identity development among the couples found to be uninvestigatedconcept. Paper was concluded with implications and future scope of the study.

Keywords: Concept Matrix, Dual Career Couples, Role, Work-Life Balance.

INTRODUCTION

Liberalization, privatization and globalizationhave changed the statistic profile of theworkforce. More women enter the workforceand it results in the dual-earner family. Thishas changed the family structure of societyfrom single earner families to dual-earnerfamilies, and now to dual career families ordual career couples, where both husbandand wife are the pay generator and also focuson their career simultaneously. Women’spoint of view has additionally changed fromonly homemakers to be career-orientedwomen. All these changes will bring newchallenges for work-life balance.

The rise of dual career couples challengetraditional gender role stereotypes also,where men were ‘breadearner’ and womenwere ‘caregiver’. It significantly influencesthe ways by which partners characterize theirroles as couples (Masterson and Hoobler,2015). It also challenges the traditional viewof career. Traditionally, career was viewed as

only for those who were positioned centrallyin the family. In dual-career couples, theimportance is given to self-development ofparticipants, nurturing their relationshipsand their commitments to endeavors toassemble single career, every person oughtto recommend the alternative on problems,for example, the number of hours spent atwork, improvements and sharing of familyassignments. At the point when a couplechooses to bring up kids, the unpredictabilityof profession choice is aggravated as theremay be extra prominent need to arrangework and own family for couple whenchildcare is covered (Budworth et. al., 2008).

Dual career couples are becoming anincreasing lifestyle of many of thehouseholds. It will create challenges forresearchers and organizations. To integratethe literature available on studies related totheir lifestyle, division of the household, theircareer decisions, issues and challenges theyfaced, social support, work-life balance

* Assistant Professor, Shri Jairambhai Patel Institute of Business Management, NICM, Gandhinagar.** Associate Professor, Institute of Management, Nirma University, Ahmedabad


31

issues, presence of dual career couples posechallenge to organizations for makingpolicies for work-life balance, role stress,work division, crossover effect, spillovereffect, coping mechanism, career decisionand barriers etc. Consequently, it is requiredto coordinate accessible writing in such amanner. It is valuable to grow a new point ofview in the territory for future research. It isan attempt to integrate the available literatureto give it a new perspective.


The aim of this review was to explore theconcepts studied in the above noticed issues.Conceptual research has used as a methodto integrate literature research. The reviewexamines literature concerning dual-earnercouples/family and dual-career couples/family as a sample unit. Hence, researcherswill get sufficient information on the topic.To search the literature from the field of work-life balance keywords such as dual careercouples, dual-earner families, two-careercouples, two income families, workingcouples were used. Literature was searchedfrom the online databases and journals suchas EBSCO host, Emerald Insight, Sciencedirect, Google scholar, Psychnet, Jastor,research gate etc. New literature has beensearched from the databases and oldliterature has been examined by reviewingthe citations from the recent articles referred.With these criteria from the searchedliterature, 72 studies are found useful for thestudy which used the dual-earner couples,dual career couples, two-career couples assamples.

Concept matrix has been prepared based onthe literature, which has been shown in Table1. Concept matrix “is the list of key conceptsof topic along one axis of the matrix and thearticles in which they addressed along theother axis. Entries in the cells of the matrixshow more frequently used concept andtheir resources in the literature” (Webster andWatson, 2002).

From the literature, various concepts havebeen identified such as role, career, work-lifebalance, social support, decision making andpower, work, division of household work,crossover effects, well being and some other.The head of each column displays conceptsthat have been derived from literature. If aconcept is/are studied or discussed in aliterature a ‘X’ sign is placed in appropriatecell. This allowed researcher to conduct acritical comparative literature review of allreferences listed under each concept.Development of concept matrix is concludedwith the research gap and research questionshave been paused for further study.

The concept of ‘Role’ includes the literatureon role overload, role ambiguity, gender role,sex role, role stress or strain, role distance,and role identity, while the concept of ‘Career’covers the literature on attitude towardswomen’s career, career priorities, job vs.career etc. The concept of ‘Work-life balance’mostly covers the literature on work-lifeconflicts and some literature on work-lifeinterferences. ‘Social support’ is the conceptunder which literature on family, spouse,partner and organizational support falls. Theconcept of ‘Work’ is very vast. It includes theliterature starting from job demand, jobvariety, work engagement, work salience,work commitment, to work satisfaction.‘Division of household’ work involves theliterature on the division of household work,hours spent on household work, child care,elderly care etc. ‘Crossover effects’ are thetransfer of feelings from one partner toanother. ‘Coping’ involve the literature oncoping mechanism couples usually use todeal with different role responsibilities, whilethe ‘Others’ column includes the literaturewhich focuses on some particular variablessuch as marital quality, gender, types ofcouples.

Dual Career Couples: Development of Concept Matrix

32

Frequencies of different concepts in the literature are shown in Figure 1.

CONCLUSION

The systematic review of literature providesa synthesis of a research spanning the pasttwo decades. It can be concluded that as dualcareer couples are a special type of familiesand decision of an individual impacted theother member of a couple. Findings fromintegrated literature revealed consistencies inprevious studies in terms of the conceptstudies for dual earner or dual career families.Identity development among the couplesfound to be uninvestigated concept.

IMPLICATIONS OF THE STUDY

This kind of research is useful for theresearcher to know the current status of thework-life balance literature and help indeveloping a new perspective andidentifying the concept yet to be explored inthe area. This kind of research will also haveimplications for organizations to identify theissues and challenges faced by dual-careercouples and untapped issues and challengesto develop coping strategies.

Studies in the area of role, career, work-lifebalance, the division of household work,crossover and spillover effects, power, socialsupport have been carried out for workingwomen and dual-career couples sincedecades. However, the concept matrix clearlyreflected that no study till date has beencarried out to understand the identity ofdual-career couples as a dyad.

As the couples shared the relationships anddecision taken by one have an impact on thelife and career of others it is required tounderstand them as a unit, who shared theidentities also. There is also scope to studythe impact of the shared identity on the role,career, work-life balance, social support,power, etc. Based on concept matrix fewresearch questions can also be posed suchas:

Does construct like shared identity ofcouples exist?

If it exists, does it impact work and liferoles of dual-career couples?

Does it impact the career prioritydecision of couples?

Figure 1: Frequencies of Different Concepts


33

SCOPE FOR FUTURE RESEARCH

Empirical research will be carried out to testthe proposed question. Each concept willstudy deeply by dividing them into varioussubconcept. For example, the concept of therole will further be divided into sub-conceptssuch as role stress, gender role, sex role, roleoverload, role strain, role change etc.

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34

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37Dual Career Couples: Development of Concept Matrix

39Dual Career Couples: Development of Concept Matrix

40

Key: (1- Role, 2- Career, 3- Work Life Balance, 4-Social Support, 5- Decision Making and Power, 6-Work, 7-Division of Household Work, 8- Crossover Effects, 10- Coping Mechanism, 8- Others

DCC- Dual Career Couples, SCC-Single Career Couples, DEC- Dual Earner Couples, SEC-Single Earner Couples, DEF- Dual Earner Family, SEF- Single Earner Family)

(Source: Adopted from Kothari and Pingle (2016))


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EMERGING RISK METRICS IN BANKS USING ECONOMETRICINDICATORS AND BANK DEPENDENT FACTORS VIZ. CAMELS

Deepak Tandon*, Aman Ketanbhai Vaishnav**, Neelam Tandon***

Justification of robustness in banks explains the risk parameters. Bankers must leverage bymetrics to remain healthy in the emerging global scenario. Boosting capital formation as requiredin Basel III by March 2020, innovations along with monetary policies will derive returns inbalance sheets of the Banks. The financial health of a bank is important, not only for the depositorsbut also for the employees, shareholders and the economy. The authors have used Two studiesvia, the first approach in measuring the financial health as well analyze the risk of banks operatingin India by CAMELS and other economic indicators. The authors performed the comparativeanalysis of performance and risk analysis of three public sector banks namely Bank of Baroda,PNB Bank and State Bank of India and three private sector Banks namely ICICI Bank, HDFCBank and AXIS Bank. Data used for the study pertains from 2014-15 to 2017-18 collected fromthe annual reports of the respective banks. The paper concludes that HDFC bank outperformedother banks in terms of risk management and performance.

Key Words: Risk Management, Profitability, CAMELS, Capital Adequacy.

INTRODUCTION

Banks in various sectors are performing as aservice industry. A strong, sustainable andviable banking system is required for aproductive economy in terms of macro andmicroeconomic terms. Evaluation of theanalysis in the banking sector depicts theperformance of a country.

Several methods and tools are employed toanalyze the banking performance by variousrating agencies which are substantiated withthe supervisory operational risks in thebanks.

CAMELS justify the meaning of capitaladequacy, asset quality, management quality,earnings, liquidity and sensitivity to marketrisk or systems and control. While CACSjustify the meaning of capital, asset quality,compliance, systems and control.

The authors attempt to evaluate thecomparative performance of the selectedcommercial banks in India using the

CAMELS rating framework and havesuggested some measures to improve theperformance of the banks under the studyperiod. CAMELS framework was developedin the 1970’s by federal regulators in the USAand has proved to be an efficient tool acrossthe banking industry to see the performanceparameters. This approach measures thefinancial health and gives an eagle’sviewpoint for risk management suggestingthe banking industry to take remedial stepsaccordingly.


Credit risk, operational risk, interest rate,liquidity risk, sovereign, embedded andsolvency risk are various types of risks in thebanking industry. The study using the paneldata was done for the credit risk assessmentby various authors. The variables used areinefficiency, GDP growth rate, capital ratioand more which explains the credit risk. Theanalysis indicates that enough gaps exist forthe risk management of the Indian Banks in

* Professor, International Management Institute, New Delhi** Student, International Management Institute, New Delhi*** Professor, Jagannath International Management School (JIMS), New Delhi


42

light of recent Basel III Norms. The analysiswas done by getting the data from financialstatements of the banks. In order to get theidea of the theory behind the analysis ofcredit risk management, various articles aswell as books have been taken as references.Niinimaki (2004) suggested that the riskmanagement efficiency of the banks isdependent on the size of the market andstructure in which it operates. Nijskens andWagner (2011) explained that theaggressiveness in lending depends on thecredit risk management efficiency. Binti et.al. (2017) studied 114 samples of banks inIndonesia and Malaysia. They used thedescriptive method and a multiple analysiswhich showed that bank profitability andperformance using CAMELS analysis.Practical and social implications were alsohighlighted in the study along withConventional banking operations. Aspal andDhawan (2016) in their studies used variousfinancial ratios for the financial performanceof the banks. Abedalfattah (2019) studiedperformance of the Jordanian banks usingCamels model for the period 2003 to 2017.They found that CAR was above 12 percentin Jordanian Banks and they have lowReturn on Assets (ROA). The study alsorecommended that the Jordanian banksmust use Camels models as laid by theCentral Bank.

Significance and Rationale of the Study

The current research is conducted to studythe CAMELS Model in selected Indian Banks.It focused on various factors that areimportant for soundness and safety in thebanking industry. The research will providefor the insights to the various stakeholders,investors and key factors judging theperformance of the banks before takingmanagerial decisions. This will enhance theknowledge about the financial statements,disclosures and will allow the stakeholdersto take managerial decisions to invest inbanks. The findings of the research will addvalue to the literature on performance of thebanks which are available and will give the

horizon. It will be an aid to top managementof banks to make rules, notifications andregulations to formulate strategies for RiskEvaluation and mitigate the potential risk offailures and suggestive corrective actions.

OBJECTIVES

To analyse the performance ofselected public and private banks withthe help of CAMELS.

METHODOLOGY

The Study: The focus of the study was toanalyze the risk associated as well asperformance of the banks. The mainobjective for any banks is to preventinsolvency and thus risk managementpractices is of a paramount importance.Liquidity problems and capital inadequacycould result into the insolvency of the banks.

The Sample: Banks selected for the studywere three from public sector viz. State Bankof India (SBI), Punjab National Bank (PNB),Bank of Baroda (BOB) and three from newgeneration private banks viz,. HDFC Bank,ICICI Bank and Axis Bank.

Tools for Data Collection: The data had beencollected from Bloomberg, EMIS, financialstatements, articles, newspapers and othersources. Data for the present study wascollected for the financial year 2015-2018.

Tools for Data Analysis: CAMELS ratingmodd was used to assess the performanceand financial strength of banks. CAMELSranking also indicated the comparativepositions of banks among the select studygroup.


CAMELS rating model subjective assessingthe financial strength of a bank, whereasCAMELS ranking indicates the bankscomparative position with reference to otherpeer banks. It is used to study the financialstrength of the CAMELS are an acronym for5 parameters (Capital Adequacy, AssetQuality, Management Soundness, Earnings,Liquidity and Systems).


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CAPITAL ADEQUACY

Capital Adequacy is a key indicator of financial well-being of a bank. It describes whetherthe bank has adequate capital to meet unexpected losses. It also indicates the ability of themanagement to meet the additional capital requirement and to maintain the confidence ofdepositors and saving the bank from going bankrupt.

1. Capital Adequacy Ratio: The regulator inIndia (RBI) prescribed a minimum Capital torisk-weighted Assets Ratio (CRAR) as 9percent since 2011. CRAR is the Capitaldivided by the Risk weighted average in thepercentage terms. The Ranking of the Banksunder the study based on CAR parametersindicated that ICICI bank ranks first withhighest CAR of 17.37, followed by SBI, AXISand BOB having CAR of 15.48 (Table 1).

2. Advance to Assets Ratio: Advance toassets ratio as per the Table 2 indicated thatHDFC and AXIS bank bags the top positionwith highest advance to assets ratio of 0.64,followed by PNB, BOB, SBI and ICICI havingvalues of 0.62, 0.60 and 0.54.

3. Debt Equity Ratio: As per Table 3, ICICIbank secures the top position with respectto Debt Equity Ratio with lowest Debt Equity

ratio of 7.08, followed by HDFC and AXIShaving values of 8.38 and 9.18 respectively.

4. Government Securities to TotalInvestment: Ranking of the Banks understudy was based on Government Securitiesto total investment [Table 4 ] indicated thatBOB stands on the top position with thehighest Government Securities to totalinvestment value of 0.87, followed by SBI,PNB and HDFC having values of 0.86, 0.79and 0.77 respectively.

Result of the averages of four ratios of capitaladequacy was expressed in Table 5 whichindicated that HDFC bank was at the top inthis category with group average of 2.5followed by AXIS Bank and ICICI Bank withan average of 2.75 and 3 due to betterperformance of these private sector banks inDebt Equity, Advances to Assets ratio, andCapital Adequacy Ratio.

Emerging Risk Metrics in Banks Using Econometric Indicators and Bank Dependent Factors Viz. CAMELS

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ASSET QUALITY

The soundness of a bank is assessed by the quality of assets it possesses and exposure tosoundness content. Asset impairment adversely affects the solvency of the financial banks.The level and severity of adequacy of provisions, non-performing assets, and distributionof assets impact the asset quality. The ratios used to assess asset quality are:

1. Net NPAs to Net Advances Ratio: Table 6below demonstrates that HDFC bank stoodon the top position with lowest Net NPA toNet Advances ratio of 0.01 followed by AxisBank and ICICI Bank with ratios of 0.04 and0.07 respectively.

2. Total Investment to Total Assets: The Table7 demonstrates that Bank of Baroda whichis ranked on the top position has the ratio of0.20, followed by HDFC Bank and PNB bankwith ratios of 0.24 and 0.25 respectively.

3. Net NPAs to Total Assets: As per the Table8, the lower this ratio the better is theperformance, PNB is ranked on the top withthe lowest average ratio of 0.0045, followedby HDFC Bank and Axis Bank with the ratiosof 0.0065 and 0.026 respectively.

Collective averages of three ratios of AssetQuality makes it clear that HDFC bank stoodfirst in this category with group average of1.67 followed by AXIS bank and PNB Bankwith averages of 2.33 and 2.67 respectivelydue to better performance of these banks inall three ratios of Asset Quality.

MANAGEMENT EFFICIENCY

The efficiency of the management signifies the ability of banks top management to takeright decisions. It enables the evaluation of better management quality and discountingbadly managed ones and helps a bank to achieve sustainable and long-lasting growth. Banksformulate their vision and goals in an articulate manner from these.


45

1. Total Advances to Total Deposits: Totaladvances to total deposits ratio indicated thatICICI bank stood on the top position withhighest total advances to total deposits ratioof 1.123, followed by AXIS and HDFC havingvalues of 1.001 and 0.901 respectively as perTable 10.

2. Business per Employee: As per table 11,Business per employee of BOB bank is themaximum. Thus, BOB bags the first positionwith highest Business per employee ratio of192.2, followed by SBI and HDFC havingvalues of 159.2 and 142.7 respectively.

3. Profit per Employee: Profit per employeeas per Table 12 stated that HDFC banksecured the first position with highest profitper employee ratio of 1.6, followed by ICICI

and AXIS having values of 1.3 and 1.0respectively.

4. Return on Equity: As per table 13 HDFCbank gets the first rank with highest ROEratio of 16.523, followed by ICICI and AXIShaving values of 10.455 and 9.735respectively.

The result of the collective averages of fourratios of management efficiency as expressedin Table 14 indicated that that HDFC bank isranked at first with group average of 2.5followed by ICICI Bank and AXIS Bankjointly at the second spot with averages of2.75, while SBI Bank on third position withvalue 3.5 due to better performance of thesebanks in Total advances to total deposits,ROE and profit per employee.

EARNINGS QUALITY

It reflects the capacity of a bank to generate and maintain profit reliably. This quality isconsidered as an imperative basis for assessing the benefit and performance of a bank. Itempowers the bank to manage undesirable shocks emerging from the risks that the bankmay face in its operations. High earnings help the bank in conducting present and futureoperations, expanding the capital base, paying profits to the shareholders, increasing thecapacity to assimilate losses and ensuring the expansion of the business.


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1. Interest Income to Total Income

Interest income to total income in Table 15indicates that BOB is on the top position withhighest interest income to total income ratioof 0.869, followed by PNB having values of0.866

2. Operating Profits to Total Assets

Operating profit to total assets as per Table16 above brings out that ICICI Bank securesthe top position with highest operating profitto total asset ratio of 3.28, followed by HDFChaving values of 3.215.

3. Net Interest Margin to Total Assets

Table 17 shows that Net interest margin tototal assets ratio of HDFC Bank is the highesti.e. 4.70 followed by AXIS having values of3.51.

4. Return on Assets

Ranking of the banks under study based onROA as Table 18 shows that HDFC bank isranked on the top position with highest ROAratio of 1.87, followed by ICICI having valuesof 1.13.

Results of the collective averages of theseratios of earning quality is expressed in theTable 19 which indicates that HDFC bankstood first in this category with groupaverage of 2.65 followed by AXIS withaverage of 2.10 due to better performance ofthese private sector banks in Operating profitto total assets and Net Interest Margin toTotal Assets and ROA. Public sector bankshave shown better performance only ininterest income to total income categoryunder earning quality parameters.

V. LIQUIDITY

Meeting of the financial obligations involvescontinuous liquidity in a bank. Too lowliquidity hampers the capacity of banks tomatch its current financial liabilities. Also, toohigh liquidity indicates that banks are notusing its cash balance and hence blockingthe way of profitability. Equilibrium betweenthese is required. The liquidity ratios underCAMELS analysis reveal that liquid asset to

total asset, demand deposits, total depositsand approved securities to total asset thehigher ratio the better.

Ranking of the banks under study on thebasis of liquid assets to total assets is shownin Table 20, which shows that BOB Bankstood on first position with highest liquidassets to total asset ratio of 0.21, followed byPNB, then followed jointly by Axis, ICICI andSBI having values of 0.11 and 0.08 (all threeAxis, ICICI and SBI) respectively.Ranking of the banks under study based onliquid assets to demand deposits are shownin Table 21, which indicates that BOB Bankis ranked on the top position with thehighest liquid assets to demand deposit ratioof 3.45, followed by PNB, SBI, ICICI, Axis andHDFC having values of 2.04, 1.41, 1.23, 0.63and 0.50.Ranking of the banks under study is doneon the basis of liquid assets to total depositsis shown in Table 22, which indicates thatBOB Bank is ranked on the top position withthe highest liquid assets to total deposit ratioof 0.27, followed by ICICI, PNB, Axis, SBI andHDFC having values of 0.17, 0.14, 0.12, 0.10and 0.08 respectively.As seen above in Table 23 Axis bank andHDFC Banks are jointly ranked at Top in thiscategory with group average of 4.3 followedby ICICI bank, PNB bank and SBI (all threejointly) with an average of 3.3, followed byBOB with average of 2.3 due to betterperformance of these new generation privatesector banks in all the four parameters ofLiquidity. Thus the public sector banks mustmake more efforts in terms of Liquidityparameter to get better results in term ofperformance.Overall composite ranking depicts theperformance in the last four years viz. 2015-2018. Table 23 depicts that on the basis of thisanalysis HDFC Bank is at first positionfollowed by Axis Bank, ICICI Bank and SBI.BOB is at fifth position and PNB at sixthposition. It is important to note that SBI(ranked 4) is top among the public sectorbanks.


47

CONCLUSION

This analysis brings out that HDFC bank,Axis Bank, ICICI Bank were occupying thetop three positions while SBI, BOB and PNBwere on the bottom three positions. In thetop three positions, no public sector bankwas present and is dominated by privatesector banks. However, SBI managed tosecure its position at fourth rank and was ontop of public sector banks. All the bottomthree banks are public sector banks. Theanalysis of the present study puts the lighton the fact that all new generation privatesector banks had shown sound performanceby the way of capital adequacy, earnings andmanagement efficiency. HDFC and AXIS alsoperformed well in asset quality managementalong with one public sector banks (PNB).However, based on liquidity, public sectorbanks had shown better performancecompared to private sector banks. Amongstpublic sector banks, only SBI has shownconsistent performance on all the parameters

and has fitted itself among top four bankson the yardstick of CAMELS model. Theother banks under the study should workto improve the factors related to adequacy,management, liquidity, asset quality andsensitivity.

References

Abedalfatta, Z. (2019). The Factors Affecting the Performanceof the Jordanian Banks using Camels Model, European Journalof Scientific Research, 152 (2) 116-12.

Aspal, P.K. and Dhawan, S. (2016). Camels Rating Model ForEvaluating Financial Performance of Banking Sector: ATheoretical Perspective. International Journal of System Modelingand Simulation, 1 (3), 10-15.

Binti, M., Munir, B., Salwa, U. and Bustamam, A. (2017).Camel Ratio on Profitability Banking Performance (Malaysiaversus Indonesia), International Journal of Management ,Innovation and Entrepreneurial Research, 3 (1) 30-39.

Niinimaki, J.P. (2004). The Effects of Competition on Bank’sRisk Taking, Journal of Economics, 81 (3), 99-222.

Nijskens, R. and Wagner, W. (2011). Credit Risk Activities andSystemic Risk: How Banks became Less Risky Individuallybut Posed Greater Risks to the Financial System at the SameTime. Journal of Banking & Finance, 35 (6), 1391-1398

Bibliography

Bart, B., and Daniel, R. (2016). Credit Risk Analytics: MeasurementTechniques, Applications, and Examples in SAS, Wiley, NewJersey.


49Emerging Risk Metrics in Banks Using Econometric Indicators and Bank Dependent Factors Viz. CAMELS

54

ENTREPRENEURIAL INTENTION AMONG MEDICAL STUDENTS: ACOMPARATIVE STUDY

Swaranjeet Arora*, Shakuntla Jain**

Today knowledge and globalization are the forces that drive the economies of countries in theworld. In order to deal with these challenges creativity, innovation and flexibility should bepromoted. This implies that countries should focus on entrepreneurial activities asentrepreneurship is considered as forerunner for economic growth and development of economieslike India. Hence, entrepreneurial intentions among students are considered important in thefield of research. So, the aim of present study was to identifying entrepreneurial intentionsamong male and female students pursuing medical education in private and public medicalinstitutes in India. The study was based on medical students intention towards entrepreneurship,data were collected from medical students through questionnaire. In the study, result found thatthere is a significant difference towards entrepreneurial intention with respect to male andfemale medical students. The result of the study points out that male students have higherentrepreneurial intentions than female students and also students pursing medical education inprivate medical institutes have higher entrepreneurial intentions than students pursing medicaleducation in government medical institutes. The findings of the present study can counter thefindings of previous studies concerning entrepreneurial intention.

Key Words: Entrepreneurship, Entrepreneurial Intention, Gender Difference.

INTRODUCTION

In India the unemployment rate amongpeople is one of the national issues.Graduates from private and public highereducational institutions who join the jobmarket, are increasing year by year(Akareem and Hossain, 2016). Due to theworld economic crises the government hasgiven more priority to graduates to beinvolved in the field of entrepreneurship dueto scarcity in job’s opportunity (Fuentelsazet. al., 2015). According to Bygrave andZacharakis (2004) entrepreneurship is anattractive field and a good earning careerchoice for those one who anticipatedindulging in the field. This field can also belike a special job that can enhance standardof living and personal satisfaction and helpto gain unlimited success through it(Gregory, 1981). Entrepreneurship isimportant for many countries because it is away of creating wealth and employment

opportunities. The conclusions of utmoststudies replicate that there is a directrelationship between economic growth foremployment generation andentrepreneurship; technologicaltransformation and firm endurance (Gormanet al. 1997; Wang and Wong, 2004;Karanassios et. al., 2006).

In medical sector entrepreneurshipopportunities are increasing due to societalchanges (Boore and Porter, 2011), however,very limited researches have been conductedon entrepreneurship opportunities inmedical field. Previous studies revealedvarious obstacles that hinder medicalstudents from taking entrepreneurship ascareer opportunity and includes factors likelack of business skill and competence,economic obstacles, lack of support fromcolleagues and society (Drennan et al., 2007;Shirey, 2007). Cultivation of employability ofmedical students concerns their future

* Associate Professor, The NorthCap University, Gurugram, New Delhi.** Research Scholar, DAVV, Indore.


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growth. Innovation and entrepreneurshipeducation could promote development inemployability of students of medicalinstitutes. It is regarded as prime way toincrease employability of students of medicalinstitutes (Chen et. al., 2015 as cited in Li,2017). Researcher has tried to find how anindividual can enhance entrepreneurialactivity. To become successful entrepreneurs,a person should possess entrepreneurialintention (Witt, 2004). According to Mazzarolet. al. (1999) starting a business is not anevent, but a process which may take manyyears to evolve and come to an execution.Ashokan (2015) views entrepreneurialintentions is the first step in an evolvingprocess. In view of Kartz and Gartner (1988)entrepreneurial intention can be used toassist in achieving the goal of establishing anew business.

For Fayolle and Gaily (2009) intention is thecognitive demonstration of will of individualto exercise behavior. It is considered as goodrepresentation of planned and controllablehuman behavior. Intention in theory used asscience of behavior. For policy makers andacademicians it is very important to focus onreasons why a person opts entrepreneurialcareer while others do not (Turker andSelçuk, 2009). New venture formation andentrepreneurial career opportunities hasgained importance due to reduced politicaland economic barriers between countriesand globalization of business activities andhence has emerged as upcoming area ofresearch (Minniti, 2008). To this end, this studyintends to compare entrepreneurial intentionamong male and female medical students ofpublic and private medical institutes.


Entrepreneurship has always been aninteresting topic which is being discussednot only by economists, sociologists andpsychologists but also by students (Shanes,2000). All subjects need constant research toevolve as a discipline (Krueger et. al., 2000).

Entrepreneurship is an important disciplineneeds continuous improvement anddevelopment through research (Gorman, et.al., 1997). Developing entrepreneurshipamong students would be important in orderto improve economic activities.Entrepreneurial intention among studentscan also be used to reduce level ofunemployment among people (Wu and Wu,2008). Entrepreneurial activities are initiatedwhenever there was an intention towardsentrepreneurship and opportunity occurs(Sing, 2014). This reflects that entrepreneurialintention is first step in entrepreneurshipprocess (Rotefoss and Kolvereid, 2005).

Shapero and Shokol (1982) stated thatsocietal factor influence one’s intentionthrough perceived desirability. In view ofBagozzi et. al., (1989) intentions is one of theimportant predictor of consequent plannedbehaviour. Intention towardsentrepreneurship is an important area ofresearch and also requires substantialcognitive research (Bhat, 2018).Entrepreneurship is the main vehicle ofeconomic development and is evident fromthe writings of Anokhin et. al. (2008).Endorsing entrepreneurship has turned intoa noteworthy topic of public policy across thedeveloped and developing countries (Fatoki,2014). Country’s entrepreneurial capacityrequires individuals with capability andmotivation to start businesses and aconstructive cultural view ofentrepreneurship is an equally essentialparameter (Tkastev and Kolvereia, 1999).

Determinants of entrepreneurial behaviorslike age, gender and education vary withindividuals (Chaudhary, 2017). On the otherhand according to Minniti and Nardone(2007) men are involved more inentrepreneurship as compared to womenacross the world. Lending some support tothis claim, Mazzarol et. al. (1999); Yordanovaand Tarrazon (2010) confirmed that womenhave less intention towards

Entrepreneurial Intention among Medical Students: A Comparative Study

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entrepreneurship than men. Thus, thisstudy aimed to fill this gap so that the findingbroadens our insights about entrepreneurialintention of medical students in Indore. Thestudy is focused on exploring differences thatexist in male and female medical students ofgovernment and private institute withrespect to entrepreneurial intention.

OBJECTIVES

To study the impact of gender onentrepreneurial intentions amongststudents of government medicalinstitutes.

To study the impact of gender onentrepreneurial intentions amongststudents of private medical institutes.

To study the impact of gender onentrepreneurial intentions amongststudents of government medicalinstitutes and private medicalinstitutes.

METHODOLOGY

The Study: Present study is exploratory innature and examines the entrepreneurialintention among medical students in Indoredistrict of Madhya Pradesh, India. The studyis based on primary data which was collectedthrough questionnaire.

The study is confined to compare influenceof gender and type of institute onentrepreneurial intention among medicalstudents in Indore district of MadhyaPradesh, India. Indore is known as theEducational hub of Madhya Pradesh. As perMedical Council of India (2018) total numberof private medical institutes in Indore districtis three and total number of governmentmedical institute is one. Total number ofstudents studying in private medicalinstitutes is 1250 and total numbers ofstudents studying in public medical instituteis 750. The present research is conductedon students studying in public or privatemedical institutes in Indore district, India.

The Sample: It was very difficult to cover allthe students studying in public or privatemedical institutes in Indore district, India.Therefore, in order to select the sample,multi-stage random sampling technique wasused to select the sample frame.

In stage one all government and privatemedical institutes in Indore district as perMedical Council of India, Madhya Pradesh(2018) were taken for study. In Stage two,from the selected group of medical institutes,a total of 300 students were interviewed. Thenumber of students selected for study fromgovernment medical institutes were 150 (75male students and 75 female students) and150 students were selected for study fromprivate medical institutes (75 male studentsand 75 female students). An attempt wasmade to include students from all selectedmedical institutes so from each institute 37students were interviewed.

Tools for Data Collection: The researchinstrument used to collect data was based onscale developed and tested by Chen (2015)and Akareem et. al. (2016). The questionnaireconsists of 11 close-ended questions basedon an interval scale. Respondents were askedto indicate their degree of agreement witheach of the questions on a five-point Likertscale. The secondary data was collectedthrough various research magazines,journals and newspapers.

Tools for Data Analysis: One Sample KS Test,One way ANOVA and Tukey (HSD) Test wereapplied to analyze the data. The data wasanalyzed using window based StatisticalPackage of the Social Science (SPSS).

Reliability of the Measures

Questionnaire adopted in this studyconsisted of 11 questions; item totalcorrelation was used in order to check thenormality of the sample. As the sample sizewas 300, item with correlation value less than0.1948 should be dropped. All the items inthe study had correlation values more than


57

0.1948, thus, no item was dropped from thequestionnaire.

Reliability of the measures was assessed withthe use of Cronbach’s alpha on all the 11items. Cronbach’s alpha allows us to measurethe reliability of different variables. It consistsof estimates of how much variation in scoresof different variables was attributable tochance or random errors (Selltiz, et. al., 1976).As a general rule, a coefficient greater thanor equal to 0.7 was considered acceptable anda good indication of construct reliability(Nannally, 1978). The Cronbach’s alpha forthe questionnaire is (0.944). Hence, it wasreliable and was used for analysis.

HYPOTHESES

H01: There is no significant difference amongmale students of government medicalinstitutes, male students of private medicalinstitutes, female students of governmentmedical institutes and female students ofprivate medical institutes with respect toentrepreneurial intentions.

H02: There is no significant differencebetween male students of governmentmedical institutes and male students ofmedical institutes with respect toentrepreneurial intentions.

H03: There is no significant differencebetween male students of governmentmedical institutes and female students ofgovernment medical institutes with respectto entrepreneurial intentions.

H04: There is no significant differencebetween male students of governmentmedical institutes and female students ofprivate medical institutes with respect toentrepreneurial intentions.

H05: There is no significant differencebetween male students of private medicalinstitutes and female students of governmentmedical institutes with respect toentrepreneurial intentions.

H06: There is no significant differencebetween male students of private medicalinstitutes and female students of privatemedical institutes with respect toentrepreneurial intentions.

H07: There is no significant differencebetween female students of governmentmedical institutes and female students ofprivate medical institutes with respect toentrepreneurial intentions.

RESULTS AND DISCUSSION

Kolmogorov- Smirnov test was performed totest if the values follow normal distribution.This test is essential to decide the statisticaltest that is to be applied to compare theaverages of respondents. The result of thetest (Table 1) shows that values inentrepreneurial intention among studentsfollow normal distribution, hence, ANOVAcan be used for comparing means.

Results of One way ANOVA

Table 2 depicts that the F value for betweengroups is 20.626 and p value is 0.00 therefore,null hypothesis H01 was rejected at 1 percentlevel of significance. It means thatentrepreneurial intentions of male andfemale students in government and privatemedical institutes significantly differ in theirmean values. Male students studying inprivate medical institutes were havinghighest mean value of 3.76 followed by malestudents studying in government medicalinstitutes with mean value of 3.39. While,female students studying in private medicalinstitutes have mean value of 3.03 and femalestudents studying in government medicalinstitutes have mean value of 2.49.

In order to find out significant differencebetween six groups i.e., male students ofgovernment medical institutes and malestudents of private medical institutes; malestudents of government medical institutesand female students of government medicalinstitutes; male students of government


58

medical institutes and female students ofprivate medical institutes; male students ofprivate medical institutes and femalestudents of government medical institutes;male students of private medical institutesand female students of private medicalinstitutes; female students of governmentmedical institutes and female students ofprivate medical institutes Tukey HSD testwas applied (Table 3). It represents that pvalues in groups 1,2,3,4,5 and 6 are 0.133,0.000, 0.141, 0.000, 0.000 and 0.008respectively which means nullhypothesisH03, H05,H06 and H07 are rejected H02and H04 are not rejected.

Hence, it can be inferred that there wassignificant difference between male studentsof government medical institutes and femalestudents of government medical institutes;male students of private medical institutesand female students of government medicalinstitutes; male students of private medicalinstitutes and female students of privatemedical institutes; female students ofgovernment medical institutes and femalestudents of private medical institutes withrespect to entrepreneurial intention andthere was no significant difference betweenmale students of government medicalinstitutes and male students of privatemedical institutes; male students ofgovernment medical institutes and femalestudents of private medical institutes withrespect to entrepreneurial intension.

These findings were similar to the findingsof Tyagi (2014) and Boissin et. al. (2008)Gender of students was found to be asignificant variable as far as intention towardsentrepreneurship is concerned; men weresignificantly more willing to be entrepreneursthan women. Luthje and Franke (2004) haveconducted the study on gender effectsonentrepreneurial intention among Belgianundergraduates. As per the study, men seemto prefer entrepreneurship as a means ofgetting ahead and view financial restraints

and creativity as important practicalconsiderations in their decision to become anentrepreneur. But women seem to preferentrepreneurship as a mean of gettingorganized and see personal capabilities andexpertise as important practicalconsideration in their decision to become anentrepreneur.

CONCLUSION

This paper seeks to examine entrepreneurialintentions of male and female studentsstudying in government and private medicalinstitutes as in the era of globalization,entrepreneurship and entrepreneurs arehighly essential. The results of present studyrevealed that there is significant differencebetween male students of governmentmedical institutes and female students ofgovernment medical institutes; malestudents of private medical institutes andfemale students of government medicalinstitutes; male students of private medicalinstitutes and female students of privatemedical institutes; female students ofgovernment medical institutes and femalestudents of private medical institutes andthere was no difference between malestudents of government medical institutesand male students of private medicalinstitutes; male students of governmentmedical institutes and female students ofprivate medical institutes with respect toentrepreneurial intention.

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Shapero, A. and Sokol, L. (1982). Social Dimension ofEntrepreneurship. In: C. Kent, D. Sexton and K. Vesper (eds.). TheEncyclopedia of Entrepreneurship. Englewood Cliffs:Prentice-Hall, 72-90.

Tyagi, V. (2014). Demographic Factors and Personality Traitsas Determinants of Entrepreneurial Intention amongUndergraduate Students of Agra City.

Webliography

Ashokan, N. (2015). Entrepreneurial Intention. DoctoralThesis. http://shodhganga.inflibnet.ac.in/handle/10603/50949.

ht tps : / /economict imes . indiat imes .com/jobs / indias-unemployment-rate-hit-6-1- in-2017-18/art ic leshow/69598640.cms.


61Entrepreneurial Intention among Medical Students: A Comparative Study

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EXPLORATORY RESEARCH OF FACTOR AFFECTINGORGANIZATIONAL COMMITMENT: A STUDY OF PRIVATE BANKS

Inderpreet Gandhi Chhabra*, Satnam Ubeja**, Shail Shri Sharma**

Organizational commitment is defined as a strong desire to maintain employment in theorganization. Organizational commitment is an issue of prime importance, especially to themanagement and owners of the organizations. Organizational commitment directly affectsemployees’ performance and is, therefore, treated as an issue of great importance. Various factorsaffect an employee’s commitment towards the organization. The present study is aimed atidentifying the factors affecting organizational commitment of managerial and non managerialemployees of private banks of Indore division. The data was collected from 150 managerial andnon managerial employees of private banks. Factor Analysis was used to identify the factorswhich are contributing in Organizational Commitment. Organizational commitment andemployee empowerment, Positive attitude, Quality of work life, Continuance commitment andSupportiveness are the main factors affecting organizational commitment extracted from theanalysis.

Keywords: Organizational Commitment, Work Environment, Job Security, Pay Satisfaction,Participation in Decision Making, Job Satisfaction.

INTRODUCTION

There are hardly any more important issuesrelated to the management and owners ofan organisation, than Organisationalcommitment. Organisation’s profitability andcompetitive position depend a lot on theemployees’ job satisfaction, commitmentlevels, and employees’ performance and isso its high importance makes it a subject toseveral studies over the years (Meyer et al.,2000). Organisational Commitment is a kindof cohesiveness between an employee andthe Organisation (Buchanan, 1974). Theemployee behavior, whether positive, neutralor negative, depends highly upon the levelof organisational commitment. If anemployee is committed to an Organisation,it would reduce the frequency ofabsenteeism and turnover (Igbaria andGreenhaus, 1992). Commitment is themeasure of an employee’s willingness towork positively in an Organisation and hiscontinuance to work for the latter (Mowday,

et al., 1982). Organisations, like Banks, areconsidered to be one of the stressful sectors.Long and inflexible working hours, alwayslingering work targets and improperimplementation and use of technology arefew of the main reasons of employees’ lackof satisfaction and commitment. However,the banking industry worldwide is beingtransformed since the last few decades, suchas immense technological innovation; thederegulation of financial services, combinedwith the increased capitalism and rapidglobalisation resulting in opening-up tointernational competition; and also, changesin corporate behavior, such as growingdisintermediation and focus onshareholder’s return.

Types of Organisational Commitment

Affective Commitment: Affectivecommitment is the individual’s psychologicalor emotional connection to, identificationwith and participation in the Organisation

* Professor, Aryavbhatta College of Management, Ajmer** Assistant Professor, Prestige Institute of Management & Research Centre, Indore


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(Meyer and Allen 1997). By affectivelycommitted employees, we refer to those whoshall carry on working for it because theyprefer so (Meyer and Allen 1991). Individualsemotionally connected to the organisationusually continue working with it, as they seetheir individual employment relationship asbeing in harmony with the goals and valuesof the Organisation.

Continuance Commitment: Continuancecommitment is regarded as staying in anorganisation due to awareness of the costsinvolved in leaving the organisation. Becauseof the individual’s understanding of thevarious expenses and threats on leaving theorganisation, continuance commitment isthought to be a comparative concept (Meyerand Allen, 1997). Continuance commitmentexists due to higher risks or costs ofmigration, compared to continuing in thesame organisation. These costs may befinancial and non financial. It is different fromaffective commitment, where individualsremain with an organisation because theyprefer it, and have maintained their peacewith its culture and environment so far.

Normative Commitment: Normativecommitment is defined as a sense ofaccountability to continue work tenure witha specific firm or organisation for a variety ofreasons (Meyer and Allen, 1997). Theintrinsic idea of commitment andaccountability, that enables employees tocontinue their employment that is providedby a specific organisation (Allen and Meyer1990). In other words, when employeesperceive commitment towards organisationas their duty or responsibility, it is normativecommitment.


Jackson and Rothmann (2019) conducted astudy on organizational commitment andsuggested that organizational commitmentstrongly affect physical and mental health ofthe employees and neutrally affect one of the

following occupational stressors like jobinsecurity, physical and mental health.

Warsi et al. (2019) aimed at analyzing therelationship between work motivation,overall job satisfaction and organizationalcommitment among Pakistani workforce.The result of the study revealed that there isa strong positive correlation betweendependent and independent variableswhich is a true also because private sectorsjobs are already insecure so it is veryimportant that management style mustfocused on work motivation and jobsatisfaction as these two independentvariables ultimately increase or decrease thelevel of organizational commitment of theemployees.

Hunt et. al. (2018) stated that high level oforganizational commitment leads to highlevel of job satisfaction and performance.Okpara (2016) also supported this statementand viewed that job satisfaction was linkedto organizational commitment that reducesturnover intentions and absenteeism.

Yousef (2016) examined the direct andindirect relationships among job satisfaction,organizational commitment and attitudestoward organizational change and theirdimensions. The result of the study showedthat investigated departments employeeswere extremely satisfied with superior-subordinates relationships, moderatelysatisfied with working environment and jobsecurity, and least focused towards paypractices and promotion schemes. Even thenthe employees in the investigateddepartment continue with their job anddesignation either because they wanted tocontinue or they ought to do it.

According to Diane and Stefanie (2014), theeffect of perceived organizational supporttowards organizational commitment doesnot impact more on boundary spanning rolein bank, if compared with non-boundaryspanning role. Boundary spanning role is

Exploratory Research of Factor Affecting Organizational Commitment: A Study of Private Banks

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well-defined as the employees who areplaying the role of interacting with a personthat is part of the organization environment,but not members of the organization.Boundary spanning role is includingcustomer service representative, front deskpersonnel and delivery personnel. Theybelieve the effect of perceived organizationalsupport towards organizational commitmentwas greater for boundary spanning role inbank, due to greater responsibilities andtheir active role.

OBJECTIVE

To identify the factors affectingOrganizational Commitment inPrivate Banks.

METHODOLOGY

The Study: The study is exploratory in natureand is focused to explore the factors affectingorganizational commitment of managerialand non managerial employees of privatebanks of Indore division.

The Sample: A sample size of 150respondents was taken for research purpose.The sampling technique used was Non-Probability Convenience Sampling.

Tools for Data Collection: To fulfill theobjectives of study, primary data wascollected from field OrganizationalCommitment Scale of Hyde and Roy (2006)was used which contains 30 variables. Thesplit-half reliability coefficient was found tobe 0.89. The reliability index was calculated,which indicated high validity on account ofbeing 0.94.

Tools for Data Analysis: Data was analyzedby using reliability test and factor analysis onSPSS, version 17.


Reliability Test

After the testing of questionnaire we havetested reliability of whole data on all factors.Reliability test has been made on whole 150

samples for testing the reliability ofOrganizational Commitment. With the helpof Coefficient (Cronbach Alpha); we havetested the reliability of factors. Reliability of150 samples for Organizational Commitmenthas Cronbach’s Alpha (.944) (Table 1) whichwas excellent. According to different theoriesof reliability value above 0.6 is appropriate,low value below the 0.5 implies that reliabilitymay not be appropriate. No items have beenremoved from the questionnaire.

Factor analysis was adopted to capture thefactors that affect organizationalcommitment of Managerial and Nonmanagerial employees of Private Banks. Table2 summarized the results of the factoranalysis which was run using the PrincipalComponent Approach with a varimaxrotation. Bartlett’s test of sphericity andKaiser-Olkin (KMO) measure were adoptedto determine the appropriateness of data setfor factor analysis. High value (between0.5to 1) of KMO indicates that the factor analysiswas appropriate, low value below the 0.5implies that factor analysis may not beappropriate. In this study, the result ofBartlett’s test of sphericity (0.00) and KMO(0.898) indicates that the data wereappropriate for factor analysis. Total variablewas calculated 61 percent, which wasoptimum to discuss about factors (Table 3).

Factor 1: Organizational Commitment andEmployee Empowerment

Highest factor loading of factor one was0.755 and item was flexible work schedulesare practiced which indicates that employeecommitment tends to increase withinvolvement in decision making andflexibility in management style wasassociated with greater commitment. Theresult was in line with the finding of Noorlizaand Hasni (2006) which states that there is apositive relationship between empowermentand organizational commitment asempowerment can actually improveorganizational commitment. This is


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supported by Ongori (2008), employeesempowerment may enable employee realizethat their existence is important to theorganization and this definitely will increasethe level of their organizational commitment.Besides, there are further explanations on therelationship between empowerment andorganizational commitment. According toChoong et. al. (2011), if the employees areempowered in terms of increasing theirresponsibilities, allowed making significantdecisions and able to voice out their ownpersonal opinions, they may tend to be morecommitted to the organization and reluctantto leave the organization. Lowest factorloading was 0.426, item was feel contentedwhen organization achieve goal (Table 4).

Factor 2: Positive Attitude

Highest factor loading was 0.731 of this factorand item was “work is worship”. Employeeshave feeling that they could enjoy quality ofwork life and work is their life. Lowest factorload was 0.490 and item was ‘peers are likemy friend’ (Table 4). Committed employee asbeing one “stays with an organization,attends work regularly, puts in a full day andmore, protects corporate assets, and believesin the organizational goals”. Such employeespositively contribute to the organizationbecause of their commitment towards theirorganization. Hamdia and Phadett (2018)also agreed with the statement where trustcan actually affect the level of organizationalcommitment of the employees. This isbecause when the organization tries tosatisfy the needs of the employees,physically or mentally, the employees mayprefer to remain as the part of theorganization.

Factor 3: Quality of Work Life

Highest factor leading was 0.739 and itemwas “ready for work on holiday”, whereemployee is ready for work always. Thisfactor implied that Quality of Work Life(QWL) is a process by which an organization

responds to employee needs by developingmechanisms to allow members to share fullyin making decisions that design their lives atwork. This result was in line with the findingof Johnson (2016) who also found thatorganizations are required to adopt astrategy to improve the employees’ to satisfyboth organizational objectives and employeeneeds. A win-win situation may result ifQWL is positively linked to businessperformance. This also further supported byMorin and Morin, (2018) as they stated thatQWL is multi-faceted. It refers to the overallsatisfaction with work life leading todeveloping work-life balance. It also involvesa sense of belongingness to a workinggroup, a sense of becoming oneself, and asense of being worthy and respectable. Inother words, it is the impact of the entirework situation on the individual. Lowestfactor was 0.437 and item was “safe workingcondition” (Table 4).

Factor 4: Continuance Commitment

Highest factor loading was 0.589 and itemwas “senior support in achieving goals”. Anykind of commitment employee always needthe support of seniors. Without guidancecommitment towards creating image oforganization can not be fullfilled.Commitment cannot be generatedovernight. Employees must stay at aconsiderable length of time in organizationthen only commitment will start generatingin their mind. Continuance Commitmentdeals with the commitment to pursueworking in an organization because of theinter-employee relations and othernontransferable investments like pensions(retirement benefits etc). This result was alsoshown by Parker (2000), Continuouscommitment is dedicated to the fact that aperson remains in organization and commitsnot to be able to leave it when he is itsmember, for example the reason could be thatremaining employees are not able to findlucrative job suitable for their experiences


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and competencies and another occupationalopportunity is not available. Continuouscommitment can be the result of longexperience and financial interests so if theywant to leave the organization they will losethese advantages. Lowest factor loading was0.492 for the item “dislike who hamper theimage” (Table 4).

Factor 5: Supportiveness

Highest factor loading was 0.655 and itemwas “supportive family issues”. Theemployees who feel that their family issuesare cared for by their organization andmanagers also have not only higher levelsof commitment, but they are more consciousabout their responsibilities, have greaterinvolvement in the organization and aremore innovative. Kristin (2014) found thatwhen a supervisor trusts his or hersubordinates, this means supervisoracknowledges that they are competent,reliable and responsible in their works. In thisway, subordinates will most likely to be morecommitted and working together to havebetter performance. This result wascontradictory with the finding of Akintayo(2016), there was a negative relationshipbetween work-life conflict andorganizational commitment. This is because,when work-life conflict occurred, this meansthat their roles and responsibilities in careerinterfere with family. Normally employeeswill tend to be more committed to family’smatters. Thus, this will decrease theperformance. Lowest loading was 0.51 as“retirement in current organization” (Table4).

CONCLUSION

This research is primarily focused on findingout the factors that affect OrganizationalCommitment of managerial and nonmanagerial employees working in privatebanks in Indore division. The output of thestudy revealed that there were five crucialfactors that affect employees Organizational

Commitment. These factors includeOrganizational Commitment andemployee’s empowerment, Quality of worklife, Positive attitude, Supportiveness andcontinuance commitment. The top levelmanagement of private banks must give dueconsideration to these factors.

Reference

Buchanan, B. (1974). Government Managers, BusinessExecutives and Organizational Commitment, PublicAdministration Review, 34, 339-47.

Choong, Y.O, Wong, K.L. and Lau, T.C. (2011). PsychologicalEmpowerment and Organizational Commitment in theMalaysian Private Higher Education Institutions: A Reviewand Research Agenda, Academic Research International, 1(3),236-245.

Diane, R.E. and Stefanie, L.B. (2012). The Moderating Effectof the Boundary Spanning Role on Perceived SupervisorySupport: A Meta- Analytic Review. Journal of Business Research66(11), 2186-2192.

Hamdia, M. and Phadett, T. (2011). Conceptual Frameworkon the Relationship between Human Resource ManagementPractices, Job Satisfaction and Turnover. Journal of Economicsand Behavioral Studies, 2 (2), 41-49.

Hunt, Shelby D., Chonko, Lawrence B. and Wood, Van R.(2018) Organizational Commitment and Marketing. Journalof Marketing, 49 (1), 112-26.

Igbaria, M. and Greenhaus, J. H. (1992). Determinants of MISEmployees’ Turnover Intensions: A Structured EquationsModel. Communication of the ACM, 35 (2), 35 – 49.

Jackson, L. and Rothmann, S. (2019) Organizational Stress,Organizational Commitment, and ill-health of educators inthe North West Province. South African Journal of Education, 26(1), 75-95.

Johnson, S.K. (2016). A Longitudinal Study of Quality ofWork Life and Business Performance, South Dakota BusinessReview.

Meyer, J. P., Allen, N. J. and Gellatly, I. R. (1990). Affective andContinuance Commitment to the Organization: Evaluationof Measures and Analysis Concurrent and Time-LaggedRelations. Journal of Applied Psychology, 75, 710-720.

Meyer, J. P. and Allen, N. J. (1991). A Three-ComponentConceptualization of Organizational Commitment: HumanResource Management Review, 1, 61–89.

Meyer, J. P. (1997). Organizational Commitment: In C. L.Cooper & I.T. Robertson (Eds.), International Review of Industrialand Organizational Psychology, 12, 175–228.

Meyer, J. P., Paunonen, S. V., Gellaty, I. R., Goffin, R. D. andJackson, D.N. (2000). Organizational Commitment and JobPerformance: It’s the Nature of the Commitment that Counts.Journal of Applied Psychology, 74, 152– 156.

Noorliza, K. and Hasni, M. (2006). The Effects of Total QualityManagement Practices on Employees Work Related Attitudes.The TQM Magazine, 18 (1), 30-33.


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Ongori, H. (2008). Managing Behind the Scenes: A View pointon Employee Empowerment, African Journal of BusinessManagement, 3 (1), 9-15.

Okpara, John O. (2016). Gender and the Relationship betweenPerceived Fairness in Pay, Promotion, and Job Satisfaction ina Sub-Saharan African Economy. Women in Management Review,21 (3), 224-40.

Parker, H. (2000) Assessment of Performance, Journal ofManagement, 9, 47-96.

Warsi, S., Fatima, N. and Sahibzada, S. (2019) Study onRelationship between Organizational Commitment and itsDeterminants among Private Sector Employees of Pakistan.International Review of Business Research Papers, 5 (3), 399- 410.

Yousef, D. A. (2016). Organizational Commitment, JobSatisfaction and Attitudes toward Organizational Change: AStudy in the Local Government. International Journal of PublicAdministration 40(1), 77-88.

Bibliography

Akintayo, D.I. (2016). Infulence of Leadership Orientationand Managerial Effectiveness on Organizational Commitmentamong Church Members in Oyo State, Nigeria. UnpublishedMMP Project. University of Ibadan, Ibadann.

Hyde, A.K. and Roy, R. (2006). Organizational CommitmentScale. Agra: National Psychological Corporation.

Kristin, L.S. (2014). A Study of the Effects of Supervisors’Trust of Subordinates and Their Organization on JobSatisfaction and Organizational Commitment. (ProQuestInformation and Learning).UMI Dissertation Publishing.

Mowday, R.T., Porter, L.W. and Steers, R.M. (1982). Employee-Organization Linkages: The Psychology of Commitment,Absenteeism and Turnover, New York Academic Press.

Webliography

Morin, E.M. and Morin, W. (2018). Quality of Work Life andFirm Performance, http://www.fgvsp.br, accessed on 12-12-19.

https://www.researchgate.net/publication/322223611

http://www.iosrjournals.org

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http://www.savap.org.pk/journals/ARInt./Vol.1(3)/2011(1.3-25).pdf


69Exploratory Research of Factor Affecting Organizational Commitment: A Study of Private Banks

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IMPACT OF INCOME AND QUALITY OF ASSET ON PROFITABILITYOF SELECT INDIAN BANKS

Nitin Tanted*, Vaibhav Mathkari**

Banks in India have important role to play in Indian economy. Unlike any bank Indian banksare also prone to many risks and numbers of banks have huge pile of non-performing assets,operational inefficiency and lack of experience in credit approval. Now modern banks are morefocused to other business stream from the traditional business which helps the banks to minimizetheir risk portfolio and help to use the full efficiency of the manpower and the resources. Thispaper focuses on the impact of non interest income on the bank profitability and also the impactof NPA with the profitability of the public and private sector banks. As the NPA and net profit ofbanks are highly correlated and which bank are more targeting to non-traditional methods tomitigate their risks. The study is done on top five private sector banks and top five public sectorbanks as per the market capitalization. Regression analysis has been used to study the impactand the study has found that private sector banks are more inclined to earn fee based income andin these private sector banks. HDFC bank and Kotak Mahindra bank is earning more fee basedincome and they have less amount of NPA also which helping them to earn high profit. Otherbanks are also earning fee based income but they have high non-performing asset. Public sectorbanks are performing bad as they have huge amount of NPAs and they are also not focusing onthe new business stream. Importantly, there is a positive impact of increasing share of fee incomein both total income and non-interest income on profitability NPAs supervision is necessary forpublic sector banks as well as private sector bank.

Keywords: Income Quality Asset, Profitability, Banks.

INTRODUCTION

CONCEPTUAL FRAMEWORK

Indian banking sector is the fastest growingsector and one of the major contributor tothe economic growth. This research paperwill examine the income diversification andassets quality and their effect on bankprofitability.

In this paper we will be discussing thediversification of income like bankstraditional way to earning income is byearning interest income but form the pastdecade banks are more focused to earnincome by non-traditional way meansearning non interest income and Banks haveincreased profits by shifting fromconventional banking functions to fee-based

income generating activities like mutual funddistribution, insurance brokerage and othertransaction services and it is somehowrelated to the assets quality of the banks.They are inclined to play safer because ofasset quality and low operational cost.


Chellasamy and Prema (2018) in their studystated that banks are exposed to differenttypes of risks by doing their core business,especially while lending loans. This leads toincrease in Non Performing Assets.The studyfound that there is a significant impact of NPAon Net Profits in select Public Sector Banksduring the study period. The study has useddata from secondary sources which arecollected mainly from the Annual reports ofthe select top five Public and Private sector

* Professor and Head Finance, Prestige Institute of Management and Research, Indore** Student, Prestige Institute of Management and Research, Indore


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Banks in India and also from various journalsand Websites.Correlation Analysis has beenused to find therelationship between NPAand Net Profit, while RegressionAnalysis hasbeen used to determine the impact of NPAonNet Profit of the select banks.”

Singh et. al. (2016), in their study, concludedthat Non-interest income has high Operatingleverage and low switching cost comparedto interest income. Non-interest income issignificant part of revenue for foreign bankswhereas it forms less proportion of revenueto public sector banks. Commission,Brokerage and exchange is significant partof private banks in India compared to Publicsector banks. This shows that private bankshave more risk appetite than the public sectorbanks. In this paper, we analyze the impactof banks’ non-interest income share on riskin the Indian banking sector for the periodbetween 2004 and 2014 for the samplebanks.”

Trivedi (2015) in tittled Indian Banking, theMove to Innovation Adoptions and NewIncome Streams, has been more pronouncedfor new private and foreign banks, whilethere appearsto have been certain hesitationon the part of publicsector and old privatebanks. The study points out thatwhile theimpact of diversification of both totalincomeand ‘non-interest’ income(encapsulating newer incomestreams) onprofitability is positive and significant.Theempirical analysis uses data on revenuesources andperformance measures of banksin India for the period 2005–2012, varioustools like regression analysis, anova, f-test,and various ratio have been used.”

According to Bapat and Sagar (2015), banksin India provide opportunities to generateincome from payment business and fee-based avenues such as commission fromsales of mutual fund and insurance products.Future research can assess the performanceamong and between new generation privatesector banks, old generation private sector

banks, public sector banks, regional ruralbanks, and foreign banks. The initial partrelates to the assessment of the impactofownership and size on diversificationandperformance using a secondary data ofpublic sectorand private sector banks fromthe year 2006-07 to theyear 2012-13.The twosample independent t-test results areobtained and coefficient with dependentvariable as Return on Assets (ROA).”

Raj (2018), in his study, concludes that non-performing assets is a biggest challengefaced by both ICICI bank and State Bank ofIndia as it leads to downfall in liquiditybalance of the banks and creates bad debtson them. Profitability is being affected dueto the fluctuations in NPA levels over theyears. The present study is based onsecondary data analysis. The data has beencollected from various web sources likeannual reports of respective banks,information bulletins and journals. Foranalyzing the data collected, correlationanalysis using SPSS has been done and tocompare various parameters, charts andtables have been made.

According to Kaur et. al. (2018) Indian banksoperate under strict regulatory guidelinesfrom the Reserve Bank of India. So, Indianbanking sector is characterized by entryrestriction, priority sector lending, and so on.It is worth remembering that we noted thatmost Indian banks are less diversified with asignificant low share of non-interest incomeshare in comparison to banks from theUnited States.”

Menon et. al. (2018) in their study, focusedon analyzing the impact of bancassurance onbanksprofitability and efficiency of fourteenbanks of India for the period from 2007-2017through which our aim was to understandthe shift of profit from one sourceto another.Comparatively private banks are generatingmore non-core income thanpublic sectorbanks.”


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It is evident that public sector banks in Indiaare not fully using their potential to increasethe non interest income. Even the oldgeneration private banks like Federal Bankare shy of increasing their non-interestincome. Evidently, new generation privatebanks could fully exploit the benefits of noninterest income due to better technologywhich ensures better customer service.”

Sukul et. al. (2018), found that NPA isincreasing by leaps and bounds in ICICI bankand he also said that proper evaluation ofprojects and adherence of proper creditappraisal techniques will lead to reductionin NPA.”

According to Dudhe (2017) Indian bankingsystem is facing the NPAs problem. Everycountry’s economic growth depends upontheir financial system. The financial systemmainly comprises banking sector. Especiallypublic sector banks should focus on theirNPA Management to grow theirprofitability.”

Jaiswal and Jain (2016), in their study, foundthat SBI has lower bad debts when comparedto ICICI bank because SBI has many brancheswhich make it enable to cover the advancegiven which in turn reduces the bad debtsof SBI.”

Mundi (2019) in his study, stated that fundand fee income contribute only eighteen (18)percent of variation inequity. The fund

income and fee income are highly correlated.The study found a moderate positiverelationship between fee income and returnon equity. The present study focuses on onlytwo income streams for a bank which arefund income and fee income. The study isamong the few studies in India which focuseson fund and fee income, andstudies itsimpact on bank performance.”

RATIONALE

The shift towards non-interest income hasbeen significant for Indian banking. Thispaper examines the rising share of fee-basedincome and non-interest income in totalincome, the diversification has a positiveimpact on profitability. The present study willhelp to understand the impact of Incomediversification NPS on profitability.

METHODOLOGY

The Study: The study is empirical in nature.

The Sample: Five Public and five Privatesector banks have been selected which arelisted on the stock exchange as per theirmarket capitalisaction. The study period isfrom 2014-15 to 2018-19. The study is basedon four parameters viz non interest income,interest income, non performing assets. Thedata for the study is taken on quarterly basis.

Based on Market Capilization followingbanks were selected for the study.

Impact of Income and Quality of Asset on Profitability of Select Indian Banks

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Tool for Data Collection: The data issecondary in nature and is collected from theAnnual reports of the selected Public andPrivate sector Banks in India and theirrespective site official Web sites.

Tool for Data Analysis: Regression Analysishas been used to determine the impact of noninterest income on the profitability of banksand impact of Non-performing assets on theprofitability of banks.

HYPOTHESES

H01: There is no significant impact of non-interest income on profitability of HDFCbank.

H02: There is no significant impact of NPA onprofitability of HDFC bank.

H03: There is no significant impact of non-interest income on profitability of KotakMahindrabank.

H04: There is no significant impact of NPA onprofitability of Kotak Mahindrabank.

H05: There is no significant impact of non-interest income on profitability of ICICI bank.

H06: There is no significant impact of NPA onprofitability of ICICI bank.

H07: There is no significant impact of non-interest income on profitability of Axis bank.

H08: There is no significant impact of NPA onprofitability of Axis bank.

H09: There is no significant impact of non-interest income on profitability of Indusindbank.

H010: There is no significant impact of NPAon profitability of Indusind bank.

H011: There is no significant impact of non-interest income on profitability of SBI.

H012: There is no significant impact of NPAon profitability of SBI.

H013: There is no significant impact of non-interest income on profitability of Bank ofBaroda.

H014: There is no significant impact of NPAon profitability of Bank of Baroda.

H015: There is no significant impact of non-interest income on profitability of Punjabnational bank.

H016: There is no significant impact of NPAon profitability of Punjab national bank.

H017: There is no significant impact of non-interest income on profitability Bank of India.

H018: There is no significant impact of NPAon profitability of Bank of India.

H019: There is no significant impact of non-interest income on profitability of Union bankof India.

H020: There is no significant impact of NPAon profitability of Union bank of India.

H021: There is no significant impact of noninterest income on profitability of publicsector banks.

H022: There is no significant impact of NPAon profitability of public sector banks.

H023: There is no significant impact of noninterest income on profitability of privatesector banks.

H024: There is no significant impact of NPAon profitability of private sector banks.

RESULT AND ANALYSIS

After applying regression analysis on eachbank separately, here is all the p-value of eachvariable. Value<=0.05 is showing there issignificant impact of independent variable ondependent variable. Value>=0.05 is showingthere is no significant impact of independentvariable on dependent variable (Table 1).


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And also another regression analysis oncombine data of public sector bank andprivate sector banks and here is all the p-value of each variable (Table 2).

Table 3 and 4 revels the result of p values ofthe formulated hyphothesis.

ANALYSIS

The study shows that the impact of fee basedincome on the profitability of HDFC bank,Kotak mahindra bank and punjab nationalbank is significant as their NPAs are low andthey are earning high interest from their peergroups and impact of NPA on the ICICIbank, axis bank, indusind bank, SBI Andpunjab national bank have negative impacton the net income but the clear result is notvisible so another regression analysis on theclubbed data of public sector banks andprivate sector banks and from that the impactof non interest income on the net income ofprivate sector banks is significant but onpublic sector bank the impact is notsignificant. This finding can also besupported by other researches done on thesame subject.

The study found that there is asignificantimpact of NPA on Net Profits inselect Public Sector Banksduring the studyperiod. Chellasamy and Prema (2018).

Non-interest income is significant part ofrevenue for foreign banks whereas it formsless proportion of revenue to public sectorbanks. Commission, Brokerage andexchange is significant part of private banksin India compared to Public sector banks.This shows that private banks have more riskappetite than the public sector banks, Singhet. al. (2016).

SUGGESTIONS

Banks should follow the rules stringentlybefore sanctioning loans. The recoverymechanism should be stream line. So thatproblem of bad loans is reduced. Credit

appraisal, post sanction follow-up should beprudent. The non-interest income hassignificant part in profitability so bank shouldadvertise and promote this type of services.The public sector banks should work uponpromotion non int based services as lesscontributor is from these banks.

CONCLUSION

Non-performing Assets could be bigproblem for a banking sector. Banks havehuge risk in doing their traditional business.Hence, private Banks are transferring fromtheir core business for reducing their risk andfocusing their business on fee based incomeand there with bank will certainly are readyto cut back their risk and manage theirportfolio. But, there’s no vital impact of noninterest income on net income of publicsector banks. because public sector banks arenot much focused on non interest incomewith that they have huge pile of NPAs andlow management efficiency and creditappraisal.

Improvement in recovery managementproperly functioning of banks depends ontime recovery of loan. Most Indian Banksaredependent on interest income ascompared to foreign banks. Indian banksshould explore new income sources, mostlypublic sector banks has to more focused onfee based business as they have huge pile ofbad loans.

IMPLICATIONS (FOR THE CORPORATEWORLD)

As this whole report is dependent onbanking sector, which is an important partof the corporate world as whole themonetary transaction is done through thebanks. Banks at where corporate andindividual save their money and banks landtheir money to earn interest.

As banks have so many different kinds ofrisk, 7 out of 10 banks are have impact ofNon-performing assets which can turned as

Impact of Income and Quality of Asset on Profitability of Select Indian Banks

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loss of money of corporate and individual.Banks should be cautious when they lendmoney. Besides they should diversify theirincome stream. This paper suggestsdiversification of income will be positive andthey will able to clean out their balance sheetand public sector banks should diversifiedtheir business as this paper suggets.

SCOPE

The purpose of the study is to know theimpact of non interest income and NPA onthe profitability, the sample is five public andfive private sector banks and data is taken oflast five year on quarterly basis. Throughwhich we will get to know that which bankis making effort to reducing their NPA andfocusing to earn non interest income. thispaper is helpful to get a picture of each bankperformance.

References

Bapat, D. and Mahim, S. (2015). Examining Relationship ofIncome Diversification, Asset Quality with Bank Profitability:Implication for Indian Banks. Indore Management Journal, 8(1), 1-11.

Biswanath, S. (2017). Non-Performing Assets (NPAs): AComparative Analysis of selected Private Sector Banks,International Journal of Humanities and Social Science Invention, 6(1).

Chellasamy and Prema (2018). Impact of NPA on ProfitabilityPerformance of Select Public and Private Sector Banks inIndia. EPRA International Journal of Economic and BusinessReview, 6 (2).

Dudhe, C. (2017). Impact of Non-performing Assets on theProfitability of Banks – A Selective Study. Annals of Faculty ofEconomics, 1 (1), 307-314.

Jaiswal, J. and Jain, C. (2016). A Comparative Study of FinancialPerformance of SBI and ICICI Banks in India, InternationalJournal of Scientific Research in Review Paper, Computer Scienceand Engineering, 4 (3), 1-6.

Menon, D.G. and Pillai, S.G. (2018). Impact of Non-CoreIncome on the Profitability of Banks in India: An EconometricAnalysis. International Journal of Pure and Applied Mathematics,119 (12) 2559-2567.

Mundi, H.S. (2019). Income Streams for Banks and BankPerformance. Journal of Banking and Finance Management, 2 (1),37-42.

Raj, M., Jain, A., Bansal, S. and Verma, T. (2018). Non-Performing Assets: A Comparative Study of SBI & ICICI Bankfrom 2014-2017. IOSR Journal of Business and Management (IOSR-JBM), 20 (9).

Samanta, P.K. and Roy, P. (2017). Analysis of Non PerformingAssets in Public Sector Banks of India, International Journal ofManagement (IJM), 8 (1), 21–29.

Samir, D. and Kamra, D. (2013). A Comparative Analysis ofNon-Performing Assets (NPAs) of Selected Commercial Banksin India. International Journal of Management, 3 (1), 68-80.

Singh, K.B., Upadhyay, Y., Singh, S.K. and Singh, A. (2016).Impact of Non-Interest Income on Risk and Profitability ofBanks in India. International Journal of Pure and AppliedMathematic. 119 (12), 2559-2566.

Trivedi, S.R. (2015). Banking Innovations and New IncomeStreams: Impact on Banks Performance. VIKALPA, The Journalfor Decision Makers, 40 (1) 28–41.

Webliography

https://www.firstpost.com/business/banks-bad-loans-pile-crosses-rs-10-lakh-crore-up-rs-1-39-lakh-crore-in-march-quarter-the-npa-mess-explained-in-7-charts-4496431.html.

www.screener.in

www.investopedia.com

www.moneycontrol.com


77Impact of Income and Quality of Asset on Profitability of Select Indian Banks

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IMPORTANCE OF ARTIFICIAL INTELLIGENCE INADMINISTRATION OF INTELLECTUAL PROPERTY IN FUTURE

Sunita Arya*

Artificial Intelligence is currently bringing a significant change to various companies aroundthe world in myriad matters. Artificial Intelligence authorizes Intellectual Property professionalsto either patent or copyright their work. World Intellectual Property, an organization, investigatesall Artificial Intelligence data submissions using training data granted by member states andother institutional partners. In the future, Artificial Intelligence systems shall play a vital rolein administrating Intellectual Property Right issues. Security surveillance, Amazon’s anticipatoryshipping project, Smart cars like the self-driving car of Google, autopilot feature of Tesla, Frauddetection, Online customer support e.g. Chat bots, News generation, Smart home devices basedon Internet of Things, Computers to facilitate play chess and video games are several examplesof Artificial Intelligence. They all are intelligent digital personal assistants which are availableon various platforms. The actual probability, though, for Intellectual Property professionals tosecure their work is very less. Artificial Intelligence facilitates Intellectual Property professionalsto increase their business productivity where they will be able to open up new markets andevaluate a superior understanding of what and where the next generation of Intellectual Propertydeal ought to come from. Artificial Intelligence knowledge is facilitating experts to focus onextra planned resolutions in their selection.

Keywords: IP Management, IP Professionals, IP Administration, World Intellectual PropertyOrganization, Artificial Intelligence, Creativity Machine.

INTRODUCTION

With the speedy growth of ArtificialIntelligence, the Indian legal system is notcleared on the deal with problems of ArtificialIntelligence (Shailesh, 2018). The mainchallenge is that the Indian legal systemdoesn’t have answers to the otherwise clear-cut query like, if a picture made on the deviceby using Artificial Intelligence then Who isthe creator? For example in the United States,a factual artificial intelligent system is usedthat can be trained on its own. The deviceswith well-built Artificial Intelligence acquireaccepted wisdom and reasonableinterpretation capabilities. The United Statesdesigns new weapons for the military byapplying Creativity Machine which is thetremendous illustration of such a device. This

is not the scenario in India. ArtificialIntelligence systems require investment oflarge capital in developing countries.Consequently, in present times, there is alacuna of the Intellectual Property connectedlaws which can protect such expansions ofArtificial Intelligence skills and also theinnovators who are to be compensatedduring the copyright or patent grant. Thepatents and copyrights are granted to theinventors or artists based on the fulfillmentof criterion like “novelty, creativity, inventivestep” etc. In the present time, the legaldefinition of creativity and innovation doesnot bring up anything about non-humaninnovation or artificial creation, for thatreason the ownership of Artificial Intelligenceinventions remains a grey area (Caixeiro,2019).

* Associate Professor, Department of Law, Prestige Institute of Management and Research, Indore


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The Role of Artificial Intelligence in IndianLegal Sector

Artificial Intelligence helps in creatingintelligent devices. Artificial Intelligence istreated as a branch of computer science. Thegoals of Artificial Intelligence are to programsuch devices to think like human beings andcopy how an individual work likeknowledge, analysis, and sensitivity. Someof the examples of Artificial Intelligence are:

Speech Interpretation andRecognition Interface (SIRI), Cortanaand Google

Play chess and video games onComputers

Google’s self-driving car and Tesla’sautopilot

Fraud detection

Chat bots

Security surveillance

Smart home devices based on IOTtechnology

Artificial Intelligence is slowly constructing apath and invading into our lives. However,the technology is still in its early developmentyears (Martyn, 2019). There are twocategories of Artificial Intelligence. In presenttime as an application like in which theprogrammer is in direct control of everyoutput the main question is whether ArtificialIntelligence is Narrow Intelligence or WeakArtificial Intelligence. Speech Interpretationand Recognition Interface (SIRI) is anexample of the same. It is a developingprocess. Strong Artificial Intelligence orArtificial General Intelligence is developed orin the process of developing devices. Thedevices with strong Artificial Intelligent areexpected to possess innovative thinking andlogical reasoning abilities. The best exampleof the same is Creativity Machine which isused by the U.S. military to design newweapons (Martyn, 2019). This can beexplained through following figure:

Figure 1 : Artificial Intelligence (Developed by Author)


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The Indian Legal Sector has not taken intoconsideration innovation or creation in termsof technology relating to artificial intelligence.Artificial intelligence is still waiting for its rolein changing the way of lawyers to operateand the law is looked at in India.

The major reasons for non-adoption ofartificial intelligence in India can be attributedto three major reasons namlely that theIndian legal sector has done very little interms of innovation and technology, legalpractioners have not pondered upon scopeof application of AI and thirdly beingcomfortable with prevelent methods ofpractices in the profession.

and the law is looked at in India. Some ofthe reasons for the failure of artificialintelligence in India can be summed up as:of failure of artificial intelligence in India alSector Has Noticed Very Little Innovation In

Artificial Intelligence in Future

In the current times, artificial intelligence canbe useful in legal research. For Legal research,a significant number of man-hours arerequired that will increase the profit-makingability of a legal firm. Artificial Intelligencedefinitely will balance the entire legalfraternity. Artificial intelligence can makelawyers proficient with highly efficient andadvanced tools, thereby, helping lawyers to

become better in advising clients. TheGovernment should take positive steps andenact laws to allow Artificial Intelligence growin the field of law.

CONCLUSION

The main problem in the Artificial Intelligencesystem is that there is still no standardpractices and laws. This is the time whenArtificial Intelligence is rapidly growing andlaws are needed to address the issue. Thereneed to be a paradigm shift in the currentIntellectual Property legal framework.Protection is needed for the devices withstrong Artificial Intelligence especially whenit comes to licensing or enforcing those rights.As Artificial Intelligence evolves it will bedifficult to differentiate them from humanacts. Future is bound to witness questions oflaw pertaining to the ownership which willbe more tricky and inevitable in the years tocome.

Webliography

Caixeiro, T. J. (2019). Pros and Pitfalls of Artificial Intelligencein IP and the Broader Legal Profession. Retrieved from https://www.americanbar.org/groups/intellectual_property_ law/publications/landslide/2018-19/january-february/pros-pitfalls-artificial-intelligence-ip-broader-legal-profession/4

Martyn, N. F. (2019). Introduction to the Protection of IPRights in Artificial Intelligence. Retrieved from https://www.ashurst.com/en/news-and-insights/insights/ip-focus-on-ai-introduction-to-protection-of-ip-rights-in-artificial-intelligence/

Shailesh, M. (2018). India: Artificial Intelligence: Facets & ItsTussle With IPR. Retrieved from http://www.mondaq.com/i n d i a / x / 7 4 0 6 3 8 / n e w + t e c h n o l o g y /Artificial+Intelligence+Facets+Its+Tusslewith+IPR

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INFLUENCE OF INDIAN ETHOS ON HUMAN RESOURCEDEVELOPMENT: A PERCEPTUAL STUDY

Ankush Pingle*, Shriram Zade**, Anuya Deshpande*

Indian ethos is drawn from various religious epics that brings the moral principles of truthfulness,observance of duty, purity of self, duty towards society which is useful in today’s Indian humanresource. It was a scenario when the reform package of the new economic policy was launched.The earlier concept was “Industrial Welfare,” “Personnel Management” and “ScientificManagement” instead of Human Resource (HR). Unethical behavior occurred because employersacted in an unprofessional manner. The employees were pressurized with achievement of heftytarget and started adopting unethical behavior to achieve targets. This created the evolution ofthe belief to incorporate ethical values in the particular discipline for all round development ofHR. Hence, business must have a vision stating the reason of existence and of the company andmust be shared with everyone connected. They must be shared with beliefs of acceptable standardsof behavior. The beliefs of standard behavior turn into human behavior which supports thedevelopment of any system which emerges from ethos principle. These ethos acts as an importantsource of creativity in thoughts and practice in the field of human resource. Human values arebased on spiritualism. They act as base for thoughts, actions, skills and behavior and will moldas a good character. The present study is based on relevant primary data collected from theacademicians and researchers. This research paper also represents the elementary approach ofthe Indian ethos and its impact on Human Resources.

Keywords: Epics, Values, Beliefs, System, Human Resources, Ethos.

INTRODUCTION

India as name refers to an ancient name“Bharatavarsha”. It is the land of King‘Bharata’ of mythological fame. India is thecountry in which people of different typesof religion, caste, languages, etc. live withharmony. In spite of different religion andcaste people lived in the country verypeacefully. It is required to examine diverseelements which are the eternal flow of unity.These diverse elements are the fundamentalcharacteristics of Indian culture. It has foundthat since decades, characteristics, spirit andbeliefs of people, which distinguishes oneculture from the other defined Indian ethosin various aspects. Indian ethos are drawnfrom the Vedas, the Ramayana,Mahabharata, Bhagwadgita and otherreligious epics. The moral standard of thesociety is guided by ethos.

In the epic Mahabharata, Guru Dronacharyaarewarded Arjuna with the supremeweapon, Brahmastra. Dronacharya was theguru of Arjuna and Ashwathama. To providea great source of weapon like Brahmastra toone of his disciple, he decided to give it toone who can handle it properly and maintainit to its values. Dronacharya was reluctantto give the most sophisticated weapon to hisown son, because he was afraid thatAshwathama might misuse it as he had highskills but low values.

From the ancient times, it is observed thatthe people were delegated responsibilityaccording to their skills. Human resourcebasically connotes employees within anorganization. In order to use the resourceproperly, the responsibility has to beassigned according to employees skills. If thisdelegation is done properly, then an

* Assistant Professor, Dr. Moonje Institute of Management & Computer Studies, Nashik** Associate Professor, Dr. Moonje Institute of Management & Computer Studies, Nashik


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organization is able to achieve the desiredresult.

INDIAN ETHOS AND HUMANRESOURCE

In order to curtail unethical behavior, reformspackage of the economic policy waslaunched. There is no universal set todetermine “Ethics”. As per the circumstancespeople tend to get involved in unethicalbehavior and put their own self-interestbefore those of other members oforganization. No universal set of ethics andprinciples exist and what is right and wrongoften depends on circumstances. In order tomake employees work ethically and changethought process to produce the holisticgrowth of organization requires rules andsystem that people and companies had tofollow.

Human resource is one of the key elementsof any organization. To inculcate Indian ethosamong human recourses, employers mustinculcate the values of team sprint, concernfor company and spiritual beliefs.

From Indian ethos the human resources canachieve not only the material gain, but alsohuman and social welfare, consciousnesspower beyond mind, i.e., soul anddevelopment. The parameters like people,equipments and methodology areincorporated as conscious partners whichsupport to create intuition for value baseddecision and combination of skilledtechniques.


Tracey (2003) has mentioned his views onHuman Resources. The author reflected hiscomments in “The Human ResourcesGlossary” which were defined the commentson Human Resources. According to him,people that were treated as staff whichoperate by organization which contrastedwith reference to economy of organizationand available resources in organization.

In the earlier phase, wherein liberalization ofeconomy of country and its joint venturesin the various sectors with the worldeconomy was initiated, the Human resourcehas got the significant importance withreference to other countries as a developedworld. Though the manpower in varioussectors and geographical locations wasavailable in very low remunerations, but itdid not contribute much in the overalldevelopment of business growth of worldeconomy. To stand in the liberalization ofworld economy it is necessary for theorganization to obtain and provide properopportunities to acquire relevant skill,knowledge of technology, experience withhandling modern equipments etc.(Monappa, 2014).

Charles Babbage and Robert Owen are theexperts who produced the idea that broughtdrastic change in industrial sectors in favorof workers and provided the thought of theirworking on improving workers’ efficiency.Early names for human resources were“Industrial Welfare,” “PersonnelManagement” and “Scientific Management.”Today the popular terms used areOrganization Management and IndustrialPsychology.

The history of human resources mentionedthat Civil Right Movement was responsibleto get employees’ right. Human resourcestandard is complex. It incorporates businessand psychology which is very rich in content.

Employee and employer relationship hasbeen changed in 20th century and thischange was driven by and reflected inhuman resources’ development. Rise oftrade union in the organization took placeto look after the rights of workers thatcreated Personnel Management departmentin early 20th century. Frederick Taylor alsoexplored his way in discipline’s developmentfor boosting the efficiency of workers(Krishna G.R., 1999).

Influence of Indian Ethos on Human Resource Development : A Perceptual Study

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OBJECTIVES

To understand the perception ofacademicians and researcherstowards contribution of Indian Ethosin Human Resource Development

METHODOLOGY

The Study: The study is exploratory innature.

The Sample: Academicians and researchersfrom Nashik city were selected asrespondents to the present study.Convenience sampling technique was usedto select the respondents for the study. 65questionnaires were field by theacademicians and researchers from differentmanagement institutes of Nashik city. Butonly 50 questionnaires were considered forthe study.

Tools for Data Collection: Self designedquestionnaire was used to collect data fromthe respondents. The questionnaire consistof two parts, part A consists of details ofrespondents’ demographic variables andpart B contains 5 questionnaires.

Tools for Data Analysis: The data collectedhas been analyzed with the help of percentilemethod through MS Excel.


Graph 1: Do you believe in Indian Ethos

Interpretation: The graph based onquestionnaire shows that, 83 percent peoplebelieve in the concept of Indian Ethos.

Graph 2: I believe in Human ResourceConcept?

Interpretation: The graph based onquestionnaire shows that, 77 percent peoplebelieve in the concept of Human ResourceManagement.

Graph 3: I believe that there is relationshipbetween Indian Ethos and Human Resource

Development?

Interpretation: The graph based onquestionnaire shows that, 70 percent peoplebelieve that the relationship between IndianEthos and Human Resource Developmentexists.

Graph 4: I believe that the Indian EthosSupport Human Resource Development?


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Interpretation: The graph based onquestionnaire shows that, 67 percent peoplebelieve that the Indian Ethos support forHuman Resource Development process.

Graph 5: I believe Indian Ethos havecontribution in Human Resource?

Interpretation: The graph based onquestionnaire shows that, 67 percentrespondents believe that the Indian Ethoshave contributed in the Human ResourceDevelopment process.

The primary data was collected from thestakeholders. On the basis of primary databased on statistical calculation, it has beeninitially observed that Indian Ethos highlysupports the Development of HumanResource in India. Hence, it can be said thatdecision should be taken considering moralvalues and standards. The data was collectedfrom the academicians and researcher fromthe management Institutes of Nashik city. Ithas also been found that most of therespondents have agreed with the conceptof Indian ethos. 83 percent respondents areaware of the concept of Indian Ethos. Theyare also familiar with their beliefs and values.The study also focuses on the significanceof human resource. It has found that 77percent of population from the sample knowabout the concept of human resource. Also67 percent people from the total sample haveagreed upon the contribution of Indian ethoson development in human resource in India.73 percent believe that there is relationshipbetween Indian Ethos and human resourcedevelopment.

CONCLUSION

Combination of values and dedicationautomatically bring success for theorganization. Human resources provide theirbest and agree to work even in adversesituations in such atmosphere. Authoritiesshould work consciously to develop valuesystem in view of Indian ethos towardshuman resource. Those have chosen toignore this aspect of human resourcedevelopment have found themselves thetargets of scandals and hostile publicreactions. By values it mean an in-builtmechanism that helps in differentiating rightfrom wrong. Right or wrong should beinterpreted in the context of socialenvironment in which a person lives, movesand act. Indian ethos is drawn from variousreligious epics which comes towards themoral principles which are useful for today’sIndian human resource.

From the result obtained and analysis it hasbeen proved at the elementary level thatpeople may be having very high standardof living, but quality of the life is not possiblewithout human values. Due totransformation of spiritualistic world Indianethos in view of human resource is the art ofnoble living and holistic development.

BibliographyGhos, B. (2006). Ethics in Management and Indian Ethos, VikasPublishing House, Noida.

Krishna, G.R. (1999). Indian Ethos for Modern ManagementPublisher, UBS Publishers’ Distributors Pvt. Limited.

Monappa, A. (2014). Managing Human Resources, Trinity Press.

Tracey, W. (2003). The Human Resources Glossary, Taylor & FrancisPublication.

Webliographyhttps://www.thebalancecareers.com/what-is-a-human-resource-1918144

https://www.humanresourcesmba.net/faq/what-is-the-history-of-human-resources/

https://www.slideshare.net/chhaviverma984/indian-ethos-need-purpose

https://www.scribd.com/doc/13261125/Indian-Ethos-for-Management

http://lsib.co.uk/lms/wp-content/uploads/2015/02/Indian-Ethos-and-Management.pdf

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ORGANIZED RETAILS AND CONSUMER SHOPPING PREFERENCES:A STUDY ON BIG MART AT KATHMANDU, NEPAL

Vibhuti Jha*, Sharmila Sharan*

As organized retailing concept has emerged in different forms like shopping mall, showrooms ofbrands and franchisee etc. shopping is no more a tiring event but a pleasant phenomenon takenas an outing. Majority of consumers like visiting such organized formats not only for varietygoods, easy availability, and cleanliness, but also for additional facilities for them and theirchildren like entertainment, convenient parking, restaurant etc. In view of this changed scenario,this study is focus on performance of consumers while shopping from malls and to identify thefactors those were related to preference. Study has examined the motivating factors that contributeto their choice of organized retail store over traditional shops and factors that stimulate them tobuy products by making an in-depth analysis of the factors that trigger the buying and theirpreference towards such retail outlets. By identifying the factors these outlets can improvise onretaining customer base and enriching customer shopping experiences.

Key words: Organized Retail, Customer Base, Shopping Experience, Customer Preference.

INTRODUCTION

With changing global market scenario,exposures, information, taste, preferences,income level, life style, social class etc.customers have multiple options available inthe market for a customer to chooseorganized retail concept as compared tomom and pop store. Trends indicate thatmajority consumers, now-a-days, like visitingorganized formats for many reasons such asvariety of goods, easy availability,cleanliness, and also with the additionalfacilities like entertainment, convenientparking, restaurant etc. At the same time inthe case of unorganized outlets advantagessuch as bargaining, credit and nearness tohouse etc. balances the tilt. Younger agegroups have inclination towards organizedstores as compare to upper age group peoplelike mom and pop stores (Gupta, 2012). Forbeing successful marketer in current market,managers must have knowledge about theliking or disliking of the customers apartfrom knowing the other aspects like time,frequency and quantity etc. Now the wholenew concept of consumer ’s sovereignty

prevails unlike the earlier seller ’s market andmanufacturers produce according to whatconsumers like and sellers sale according toconsumer making “consumer as thesupreme in the market” (Rohilla, 2010-2011).

Shopping mall is a concept of modern retailformat in which seller give all the type offacilities with multiple and variety of productsin a single roof. “Big Mart” is a supermarketwhich operates its stores in many parts ofthe Kathmandu valley. It stands out as oneof the most valuable brands in Nepaleseorganized retail industry within a very shortspan of time from its inception. As othercompeting retailers in the city will betargeting the same customers, it is importantfor the retail store like Big Mart to createdistinctive appeal through better valuepropositions and understanding customerexpectations and preferences.


A study has concluded that slowly traditionalform has vanished and now people aregiving more preference to new retail format

* Faculty of Marketing, Kathmandu College of Management, Kathmandu (Nepal)


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(Laxmi Narayana et. al., 2013). In anotherstudy also stating that people are morefocused towards services or service quality.In the oldest format parking, productpresentation, aroma, flexible working hourswere not possible, but because of neworganized relating this is possible. So, growthof new format is remarkable (Ciavolino andDahdgaard, 2007). Nepal, with a populationof around 30 million, possessing a hugesegment of FMCG industry, which amountsto more than a billion dollar and growing ata very remarkable pace, with the yearlygrowth rate of 20 percent in the FMCG sector.

Researchers have found in their study thatcustomers were more satisfied becauseretailers are introducing new price andpromotion models to attract the customerand they have improved old format with newinnovative ideas of promotion and createnew benchmark for the customer (Grewal et.al., 2011).

Companies are creating long termrelationship with customers and slowlycustomer are becoming king of the marketand their feedback about products andprocess are actually started giving help to thecompanies for improvising the satisfactionlevel. With this market informationcompanies have started development ofservices (Kumar and Kumar). Researchershave observed in their study that peoplewere more focused on discounts and offers,multiple choices of products with easyprocess of purchasing and they havereduced their attachment with oldest formatbecause of poor process or product quality(Sangvikar and Katole, 2012).

One of the study has identified some servicequality factors, staff behavior, help desk,punctuality, billing counter etc. give moresatisfaction in shopping. (Hokanson, 1995).As tastes and preferences are changing socustomer satisfaction is also changing.Customers have changed their purchacingdecision process and retailers have tried to

identified target customers because of thosetargets concept of shopping has changed(Kesari and Atulkar, 2014). One study showsthat customers are backbone of any businessand they only are able to change the wholeenvironment of market and shopping.Information technology is one of the factorsintroduced by the marketer for effectivecompetition (Pushpavathani andKumardeepan).

These factors were Identified with the helpof extensive review.

Figure 1: Conceptual Framework ofConsumer Preference towards Big Mart

OBJECTIVES

To measure the customer preferencefactors which affect while purchasingfrom Big Mart.

To find the correlation betweenmotivational factor and frequencyvisit to Big Mart.

To find the correlation betweenfrequency of visit to Big Mart andsatisfaction level.

Organized Retails and Consumer Shopping Preferences- A Study on Big Mart – Kathmandu

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To find the correlation betweenfrequency of revisit to Big Mart andsatisfaction level.

METHODOLOGY

The Study: The study has been conductedby surveying the population of Kathmanduvalley who visit the Big Mart. Only limitednumbers of persons were contacted becauseof time constraint. Study was focused onurban area because the Big Mart was basedon only in Kathmandu valley in main area.

Total nine factors were identified for supportof this study namely quality of goods,availability of goods, location, staff behavior,customer service, parking facility, store space,billing facility and prices/ discounts.

The Sample: 80 customers were selectedusing non probability convenience samplingmethod and surveyed at the Big Mart storeof Kamal Pokhari, Kathmandu.

H01: There is no significance difference inrelationship between frequency of visit to BigMart and Motivation to shop from Big Mart.

H02: There is no significance difference inrelationship between frequency of visit to BigMart and satisfaction level towards Big Mart.

H03: There is no significance difference inrelationship between satisfaction level andvisiting again to Big Mart.

Tools for Data Collection: The data is purelycollected by using the Primary source i.e.with the help of a questionnaire. All questionswere structured and arranged on likert scalefrom Highly satisfied (5) to Highly dissatisfied(1). The questionnaire was divided into fourparts each containing questions related todemographic factors, customers preferencetowards store, level of satisfaction towardsstore and their intention to visit store againand recommend store to others. All thesefactors combined have given a good ideaabout the customer’s preference towards BigMart. To extract good information about thesefactors, the questions were designed

carefully so that the respondents providequality and unbiased information.

Tools for Data Analysis: The data which wascollected through the questionnaire wasfurther processed by using SPSS software aswell as Microsoft. Excel. Descriptive statisticsand Correlation Analysis was being used totest the hypotheses. Based on those analysisacceptance or rejection of hypotheses wasdetermined. It was helpful in findingwhether factors affecting consumerpreference of shopping at Big Mart haverelationship with frequency of visit to thestore or not. Various charts, tables and figureshas been used in a manner that it was alsohelpful to understand the findings muchmore easily and clearly. To test thehypotheses p-Value approach was used indetermining relationship or no relationshipbetween variables.RESULTSIn order to know which factors were mostencouraging/ motivating for consumer toshop at Big Mart questionnaire responsedata has been presented in Bar charts andpie chart.Parking facility (55 percent) and location (52percent) were primary factors for customersto getting motivation and then variety ofproducts also was motivational factor forcustomers to visit Big Mart in Kathmandu.Discount was of least preference forcustomers to get motivation to visit Big Mart.

Figure 2: Responses on Motivation Level onFactors affecting Consumer Preference


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It was also interpreted from this that Big Marthas located itself in a good place whichprovides opportunity to attract customersmaking it convenient for people to visit i.e.location was the biggest motivational factor.

Figure 3: Responses on Motivation Level forBilling Facilities

Above figure has shown that customerswere not motivated with the billing facilitiesprovided by the Big Mart. Hence, it was athreat for Big Mart as it could lose itscustomers because of poor billing facilities.

Figure 4: Responses on Customer Serviceand Store Space as Motivation

Data found that customer services and storespace were equally important for customersto get motivation but at the same time 46.25percent customers were neutral regardingspace and 32.5 percent people were not atall find the relation with services too.

Figure 5: Responses on Satisfaction Level ofConsumer towards Big Mart

According to figure 5 it could be analyzedthat customers were satisfied with the qualityof products of Big Mart, about 50 percent andalmost 33.8 percent respondent were highlysatisfied with the quality of products.Consumers were also satisfied with the BigMart discounts and prices. About 45 percentrespondents were satisfied and 23.8 percentrespondents were highly satisfied with theBig Mart prices and discounts. Around 43.8percent respondents were satisfied and 28percent respondents are neither satisfied nordissatisfied with the store ambience.Infrastructure was the least important factorfor customers on the satisfaction level scale.

Figure 6: Responses on Satisfaction Levelwith Promotion of Big Mart

From Figure 6 study could interpret thatcustomers were not satisfied with the


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promotion of the Big Mart. About 40 percentof respondents were dissatisfied 32.5 percentwere neither satisfied nor dissatisfied withthe promotion of Big Mart.

RESULTS

Table 1 shows moderate positive correlationbetween frequency of visit and motivationto shop at Big Mart at r = 0.307. This showsthat consumers were frequently visiting tostore if they were motivated to shop at BigMart. P value of hypothesis 1 was 0.006,which was less than 5 percent. Therefore,null hypothesis was rejected and leading toaccepting alternative hypothesis. We haveproven that there was relationship betweenfrequency of visit and motivation to shop atBig Mart. More the consumers weremotivated to shop at Big Mart more theywould visit store.

Table 2 shows that there were moderatepositive correlation between frequency ofvisit and satisfaction level towards Big Martat r = 0.244. It was shown that consumerwould visit Big Mart if they were satisfied. Pvalue of hypothesis 2 was 0.030, which wasless than 5 percent. Therefore, nullhypothesis was rejected and leading toaccepting alternative hypothesis.

Table 3 shows that there is strong positivecorrelation between customer level ofsatisfaction towards Big Mart and visitingagain Big Mart at r = 0.657. It shows thoseconsumers who were satisfied with the BigMart services were visiting again Big Mart forshopping. P value of hypothesis 4 was 0.000,which is less than 5 percent. Therefore, nullhypothesis was rejected and leading toaccepting alternative hypothesis. It states thatmore the consumers satisfied with the BigMart services more likely they would visit BigMart.

DISCUSSION AND SUGGESTIONS

As many researchers have found thatcustomers were interested to do the

shopping from Big Mart on the monthlybasis because Big Mart was giving all possibleassortment of the product (Grewal et. al.,2011). Big Mart (Kathmandu) was mainlydealing with middle income group peoplewho wanted quality product with reasonablecost, and has positioned itself in the marketas a discounted store. Consumers weresatisfied with the services, ambience of thestore, availability and variety of products,quality of goods and price of the products.Consumers were encouraged to visit andshop at the Big Mart, as they were providingquality of goods, staff behavior, location,parking facilities, prices and discounts. Butconsumers were not encouraged by thebilling system of the Big Mart. Servicepersonnel take a lot of time in billingcustomers which increases their waiting time.Also, consumers were not satisfied with theBig Mart promotion and advertisement of itstores. Many people came to know about BigMart through family or friends and very lessthrough advertisement.

Long queues billing counters was one of themost common problems faced by majorityof the customers, which needs to beimproved. For solving the problem of longqueues in the Big Mart (Pushpavathani andKumardeepan 2013), Number of countersshould increased. It was the suggestion bycustomers. Visiting hours and billing countershould be synchronized (Rohilla 2011). Thecustomer service needs to be improved. Thecustomer service of the sales person wasneeded to be improved providing personalcare by the sales person for the customersso that the customers feel good. Thereshould be periodical evaluation of staff.Complaints and queries of customers shouldbe taken care by the customer caredepartment. Big Mart should be able toprovide all needed information to itscustomers whenever it is required throughthe person sitting at the help desk of Big Mart.Customers were faced with the problem ofGoods-Out-of-Stock, which needs to beimproved.


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Customers were not satisfied with thepromotion of the Big Mart. So Big Martshould increase its promotion andadvertisement. Promotion provides neededinformation and advice, persuading targetcustomers and encouraging them to takeaction at specific times. Big Mart shouldimprove its promotion and advertise moreso that consumers would be in touch withthe Big Mart and their daily lives throughpromotions. Big Mart should advertise itselfin daily newspaper so that prospectivecustomers get to know about Big Mart andits offers. Big Mart should also make itspresence on social sites, as now-a-day youthpresence on online sites was very high.

CONCLUSION

The study present was focused oncustomer ’s preference towards shoppingfrom Big Mart. As Big Mart is major attractionfor Kathmandu’s customers, this was theplace where they could find the variety ofproducts with minimum price. As Big Marthad positioned strongly in the city so largenumber of customers had attraction to visitthe place and purchase product. Big Marthad two type of customers, one middleincome group and other young age groupboth have multiple attraction to visit Big Martand had many motivational factors forpurchasing product. Location, Variety,Parking etc. many factors available ascompared to oldest format to attractcustomers towards Big Mart. Big Mart hadnot only providing facilities but the serviceswere also improvising continuously tomotivate and give satisfaction to thecustomers.

From the study it could be taken as outcomethat the retail outlets have become the primeavenues for majority customers, especiallymiddle class. People now prefer going to

malls than buying from local shop to displaytheir changing choices, status and self-concept. The findings indicate that retailmalls and stores need to focus on issues likecustomer friendly billing, lead timemanagement for goods, assortment displays,customer friendly layouts, well designedpromotions, service extensions andproviding extended facilities of recreationand creating multifaceted shoppingexperiences for customers. This will behelpful in developing loyalty, retention andpulling new customers.

ReferencesCiavolino, E. and Dahlgaard, J, J. (2007). Customer SatisfactionModelling and Analysis. Research Gate, 18(5) 545-554.

Grewal, D., Ailawadi, L., Dinesh, G., Hall, K., Kopalle, P.,Robertson, R. (2011). Innovation in Retail Pricing andPromotions. Elsevier Journal of Retailing , 43-52.

Gupta, U. (2012). Impact of Organizes Retailing onUnorganized Sector. International Journal of Research inCommerce, IT and Management, 112-115.

Laxmi Narayana, K, Samal, Shathru Ajata and P. NagarajaRao (2013). A Study on Consumer Buying Behavior TowardsOrganized and Unorganized Retail Stores In Bangalore City.International Journal of Management Research and Business Strategy, 2(3), 35-46.

Kesari, B. D. and Atulkar, S. (2014). A Review of CustomerPrefernce towards Organized Retail Stores. IRC’S InternationalJournal Of Multidisciplinary Research In Social and ManagementSciences, 24-25.

Kumar, S.M. and Kumar, Satish V (2018). A Study onConsumer Preference and Satisfaction towards Laptops withSpecial Reference to Erode. IOSR Journal of Business andManagement, 2(3,4), 56-59.

Hokanson, S. (1995). The Deeper You Analyse, The More YouSatisfy Customers. Marketing News, 29(1), 16.

Sangvikar, B.V. and Katole, H.J. (2012). A Study of ConsumerPurchase behavior in Organized Retail Store. Journal of Businessand Retail Management Research, 7(1), 39-47.

Pushpavathani, K. and Kumardeepan, V. (2013) ConsumersPerference and Consumer Buying Behavior of FootwareIndustry Vavuniya District, Srilanka. TRANS Asian Journal ofMarketing and Management Research.

Webliography

Nepal, U. (2013). A Few Important Facts about the FMCG Industryin Nepal. Retrieved from United Distributors Nepal: http://uniteddistributorsnepal.blogspot.com/

Rohilla, B. (2010-2011). A Study on Consumer Preferencetowards Cadbury. https://www.scribd.com.


93Organized Retails and Consumer Shopping Preferences- A Study on Big Mart – Kathmandu

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PLUGGING THE LOOPHOLES BETWEEN ARTIFICIALINTELLIGENCE AND INTELLECTUAL PROPERTY LAWS IN INDIA

Ritupriya Gurtoo*, Sayali Bandi*

There is much hype among the mainstream media centering on the question as to whetherpeople will eventually, lose their jobs due to Artificial Intelligence (AI). In an era, wheretechnology is changing rapidly, past few decades, have witnessed Artificial Intelligence gainingwidespread momentum in our daily lives. It might not be wrong to point that AI is such arevolution in the latest technology development that has the potential to disrupt the existence ofthe human race. With sophisticated technologies being introduced and incorporated from time totime, the day is not far when artificial intelligence will be able to produce, without any interventionfrom humans, spectacular inventions. This development in technology thus bring forth one ofthe most relevant socio and legal questions concerning Intellectual Property Rights (IPR). ArtificialIntelligence system not only poses a challenge to the traditional notions of IPR but also raisinga concern about its regulation. This paper seeks to provide an insight into the looming issuesconcerning IPR laws and artificial intelligence, along with the inevitable challenges it wouldbring with it. This paper would also attempt to analyze the scope of Artificial Intelligence and toaddress the concern of the parties involved in it within the existing legal framework of IntellectualProperty Laws.

Keywords: Artificial Intelligence, Intellectual Property Laws, Artificial Intelligence Systems

INTRODUCTION

In the present era, Artificial Intelligence isconsidered to be one of the most importantand challenging technology. Onceconsidered a remote possibility exclusivelyreserved for games, movies, and otherscience fiction. Artificial Intelligence hasemerged as one of the technological tippingpoints of scientific revolution capable ofgenerating groundbreaking effects onhumanity and is “likely to leave no stratumof society untouched” (Goode, 2018).However, in recent times as and when withthe change in technology ArtificialIntelligence systems are gaining widespreadmomentum and posing challenges to thevarious legal systems around the world.Artificial intelligence is no longer a conceptthat is alien to the human race.

John McCarthy, the father of ArtificialIntelligence, has described it as “the science

and engineering of making intelligentmachines, especially intelligent computerprograms”. Artificial Intelligence isaccomplished by studying how a humanbrain works while solving a problem and inwhat manner it learns and makes decisions,where outcomes of such kind of study areused as the basis of developing intelligentsoftware and systems (Sambhar, 2019). Theability of a computer to take decisions byitself in common parlance is known asartificial intelligence (Tripathi, 2017).Technological advancements in the field ofscience have made the machine capable ofperforming their tasks on their learningwithout any aid from humans. ArtificialIntelligence has the capability of imitatinghuman behavior (Padhy, 2005). Ever sincethe concept of artificial intelligence has comeinto existence, the world is divided into twoopinions. One group firmly believes thatArtificial Intelligence will bring a paradigm

* Assistant Professor, Department of Law, Prestige Institute of Management and Research, Indore


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shift in the present working style of industryand will eventually lead to enhanced qualityof human life. While the other group believesthat Artificial Intelligence will not onlysurpass human intellect in all domains butsuch machines, in the future, will startreprogramming their software and codes tobecome their own master. This researchpaper aims to seek answers to the questionsthat arise, where artificial intelligence isextensively used, who holds the exclusiverights in Artificial Intelligence machine-created work. The results being rendered bythe machine are an outcome of the creator’sintelligence, his research team or the personwho has programmed the algorithms andcommands or the machine itself. As there isno prior knowledge or laws that wouldconfer rights or liabilities on the ArtificialIntelligence machines, this paper focuses onthe special attention that is needed to removethe ambiguity and facilitate its original creator.

INTERLINKING ARTIFICIALINTELLIGENCE AND LAWS IN INDIANMILEU

Under the United States Patent Law, an‘inventor” connotes an individual or a groupof people who invented or discovered aninvention. (USA) Hence, the patent lawsunder the United States are clear on the factthat only natural persons are allowed to filefor a patent. However, the EuropeanParliamentary Committee in the last fewdecades has acknowledged that ArtificialIntelligence systems could outshine humanintelligence in terms of performing functions,which if become uncontrollable, could posea major challenge to the community at large.(Parliament, 2016). Under The Indian PatentsAct, 1970 there is no definition of “state ofthe art”. The “state of the art” basicallyconnotes an invention that has been keptoutside the purview of the public domainbefore the patent is filed. Novelty provisions,under Patent Act, 1970, refer to the inventionhaving the characteristic of being original and

innovative. The Indian Patents(Amendment) Act, 2005 defines “newinvention” as any invention discovered orinvented by the creator which has not beenanticipated by anyone nor has it beenreferred or published by any person. InEastern Book Co. v. D.B. Modak the court heldthat “Indian Copyright law requires that inorder for a “work” to qualify for copyrightprotection, it would first have to meet themodicum of creativity standard laid down inSection 2(d) of the Indian Copyright Act,1957”. The first issue under the above-mentioned definition is its usage of the terms“the person who causes the work to becreated”. Determining who “causes” a workto be created is a question of the proximityof a natural or legal person. From the aboveprovisions, it is clear that the Indian Act issilent on the fact as to whether the machinescan possess the requirements of patentingor copyright.

COPYRIGHT FOR MACHINE-GENERATED ART

Copyright is one of the integral parts ofintellectual property rights. It is a legal rightgranted to the creator of an original workwhich allows him/her an exclusive right touse his creation and distribute it exclusively.The rationale and the justification behind thiswas the notion that the author is an originatoraccording to the Locke’s economic theory ofpossessive individualism (Zimmerman,2005). According to the Copyright ProtectionAct, copyright is available to the person foran original work of authorship, fixed in atangible medium that has a minimal amountof creativity.

If a work doesn’t have all three of thesecomponents, then it is not the copyrightablesubject matter. It is pertinent to study theinterrelation between artificial intelligenceand copyright because copyright in such asituation is to be decided where creative andartistic work is generated by an automatedmachine, or any form of artificial intelligence,

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where creation has taken placeindependently without any kind of humaneffort (Sambhar, 2019). In terms of grantingCopyright, ownership might belong to theProgrammer or the creator of the artificialsystem. For example, the issue of authorshipof the programmer was considered in theUK High Court in Nova Production Ltd. v.Mazooma Game Ltd. The case involvedelectronic pool games in which the individualframe, displayed on the screen when thegame was played, which were considered asa computer-generated artistic work (NovaProductions Ltd. v. Mazooma Games Ltdand others, 2007). The court held that thatthe “author of the work was the programmerwho devised the appearance of the variouselements of the game and the rules and logicby which it was generated and who wrotethe relevant computer program”.

At times, Copyright can also be assigned infavor of a user if he intends to create afinished work through the application of theprogrammer ’s program through his ownskills. If the produced work is totally newrather, with no involvement of any user, theartificial intelligence possesses the discretionover whether to produce future work or not.

The issue of copyright in the realm of artificialintelligence can also be seen through judicialpronouncements. In the Monkey- Selfie case,The United States Copyright officer clarifiedthat “to qualify as a work of authorship, awork must be created by a human being”(Naruto v. Slate, 2018). In Burrow GillesLithographic Co. v. Sarony the courtaddressed the issue of the dichotomybetween creative and mechanical labor. TheCourt discussed that “possibility of grantingcopyright protection to a product which isthe output of a machine and that purelymechanical labor is per se not creative andthereby narrowed the scope of theirprotection” (Burrow Gilles Lithographic v.Sarony, 1884). In Bleistein v. DonaldsonLithographing Co., the Court addressed that

“there was a clear differentiation between ahuman’s work and something artificial. TheCourt made its stance clear by using thewords ‘something irreducible, where thereis no scope for anything that was not aproduct of man’s creativity cannot claimauthorship”. ( Bleistein v. DonaldsonLithographing Co, 1903) In Alfred Bell & Co.v. Catalda Fine Arts, Inc the Court held that“for the work to be original, it must not becopied from any other artistic work of similarcharacter and even held that unintentionalor accidental variations may be claimed byan author as his or her own” (Alfred Bell &Co. v. Catalda Fine Arts, Inc., 1951).

The question still remains whether grantingcopyright to a machine that lacks creativityis justifiable or not. The logic behind theorybeing that creativity is the ability to do theunpredictable, i.e., not following the usualroutine, unlike something machines andcomputers always do (Gelernter, 1994). Thesame is countered by many authors whoperceive writers as machines themselves, asthey have the capability to infer, process theexisting works and deduce the majority oftheir works from pre-existing ideas availablein the public domain.

PATENT LAWS AND ARTIFICIALINTELLIGENCE

The machine made invention from theperspective of Intellectual Property hasmyriad important elements whiledetermining the grant of patent. However,there are certain mandatory requirementswhich are necessary to classify a person asan inventor under Patent Law. A crucialfactor for any invention to be granted apatent is whether or not it can pass thepatentability criteria satisfactorily. This callsfor it to possess novelty, an inventive step,and be capable of industrial application(Patent Act, 1970). Furthermore, thepatentability of the artificial intelligencesystem can be noticed from the fact that thecourt has held that that “grant of patents


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would be denied to programmer simplybecause what they perform is mechanicalrather than inventive” (Bilsk. v. Kappos,2010). The court in a case has even held that“If something is reduced not on account of apreconceived idea, then such a thing cannotbe termed an invention and such person, asa result, is not an inventor” (Townsend v.Smith, 1929). Patents are granted to provideprotection to the inventor and honor hisattachment to the invention, which he doesnot wish to be used at any stage byexponential rate by others. This notion ischallenged by the opponents of patentsprotection being granted to ArtificialIntelligence argues that computers lack anysuch attachment (Abbot, 2016).

CHALLENGES UNDER INTELLECTUALPROPERTY LAWS

In today times, there have been several highdegree computational creative innovationswhich have sparked debates for the re-examining the laws of intellectual propertyfor Artificial Intelligence. The currentprovisions under intellectual property lawshave failed miserably to take into account thefact that computers independently couldqualify for authorship and inventorship withjointly authored works with natural persons.Due to certain controversy related to artificialintelligence, many copyright offices across theworld have refused to register machineproduced works. While this is a hugedevelopment from the perspective of arapidly changing technological standpoint,it poses new challenging questions from alegal standpoint, i.e., from the perspective ofpatent law. A patent is an exclusive right overan invention. The patent holder has themonopolistic right to make, sell, use thepatented product and exclude others fromthat invention. This term ‘invention’, to comeunder patent law, includes any product,process which provides its users with aninnovating and novel way of performingcertain actions. This also includes offering

new solutions to an existing technicalproblem (Subhalakshmi, 2019). Therefore,the above action legitimizes the creator ’smonopoly, for certain years, for the benefitof the original inventor. Section 6 of thePatents Act, 1970 states “that an applicationfor a patent for any invention can be madeonly by the true and first inventor of theinvention or the persons provided uponrequest only assigned by such person”.Whereas, the Act confines the definition of“true and first inventor” to the extent ofexcluding the first importer of an inventioninto India, or a person to whom an inventionis first communicated outside India, andnothing further. These provisions of the Actdo not expressly require that an inventor hasto be a person. There are certain patentabilitycriteria to possess such as novelty, aninventive step, and be capable of industrialapplication. For granting the patent rights toartificial intelligence machines, firstly it hasto fulfill all three-step tests of novelty andinnovation. An artificial intelligence systemwill always have a question that who wouldown the ownership in case of the invention.As to the question involving an inventivestep, if novelty itself is difficult to determineby the Artificial Intelligence system, theprobability of making innovations on existingmodels or concepts which is not obvious toa person skilled in the art is certainly adifficult task to achieve (Ghatak, 2018).

ARTIFICIAL INTELLIGENCE: A WAYFORWARD

In a rapidly changing era of technology,there is a need for laws in India to amendtheir intellectual property laws with regardsto artificial intelligence. There is a need forcurrent laws to be amended and guidelinesneed to be streamlined in a manner whichmight allow for inventions by ArtificialIntelligence to be granted patents. However,this is only possible if the amendment isbrought that would enable artificialintelligence to enable system generic

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machine to be allowed for the patent. Thereis also a need for Uniform Recognition forartificial intelligence that would allow allcountries to be on the same platform as faras recognition of this technology isconcerned. The artificial intelligence systemwill fail if simultaneously the Data ProtectionAct is not amended. Data Protection Actshould have specific provisions concerningcivil and criminal liability in case of misuseof artificial intelligence. The lacuna of ArtificialIntelligence can also be resolved by havinga regulatory body having a comprehensiveframework to govern, adjudicate and awardpunishment concerning the acts of ArtificialIntelligence.

CONCLUSION

There is no denying the fact that ArtificialIntelligence is bound to develop increasinglyby each passing day. One of the publicopinions is that artificial intelligence willdiminish the worth of human thinking andinvention if used incessantly. On the otherhand, a balance needs to be created where acollaborative form of patent protection for theinventions made by Artificial Intelligence canbe considered. In the quest of makingIntellectual property laws adaptable to thechanging need of society, one doesn’t havethe liberty to create an imbalance in theexisting legal system. There cannot be totalsubmission to Artificial Intelligencetechnologies that completely diminish theroles of human intervention. While there isno clear connotation of the word inventorbeing restricted only to natural persons, it ismandatory for the legislators to address thequestion of inclusion of such technology andto develop guidelines to adequately protectall forms of creation from such technology.

References

Abbot, R. (2016). I Think, Therefore I Invent: CreativeComputers and the Future of Patent Law B.C.L. Rev, 1095.

Gelernter, D. ( 1994). The Muse In The Machine. Free Press , 83.

Ghatak, S. T. (2018). Artificial Intelligence and Intellectualproperty Law. Christ University Law Journal , 83-97.

Subhalakshmi, D. G. (2019). Man and Machine: A discussionon Artificial Intelligence from a legal perspective. InternationalJournal of Advance Research, Ideas and Innovation in Technology , 5(4), 140-145.

Tripathi, S. (2017). Artificial Intelligence and IntellectualProperty Law. Christ University Law, 83-97.

Zimmerman, L. (2005). It’s an Original!(?): In Pursuit ofCopyright’s Elusive Essence. COLM. J. L. & ARTS , 198.

Bibliography

Alfred Bell & Co. v. Catalda Fine Arts, Inc., 191 F.2d 99 (1951).

Bilsk v. Kappos, 561 U.S. 593 Suprme Court 2010.

Bleistein v. Donaldson Lithographing Co, 188 U.S. 239 (1903).

Burrow Gilles Lithographic v. Sarony, 111 U.S. 53 (1884).

European Parliament (2016). Draft Report with recommendationsto the Commission on Civil Law Rules on Robotics, Committee onLegal Affairs Report.

Nova Productions Ltd v.Mazooma Games Ltd and ors. 6 ECDR(2007).

Padhy, N. (2005). Artificial Intelligence and IntelligentSystem,Oxford University Press.

Townsend v. Smith 36 F.2d 292, 295 C.C.P.A. (1929).

Webliography

Goode,L.(2018). Goode Intelligence 2018 Biometric IndustryPredictions Retrieved from https://www.theverge.com/2018/1/19/16911354/google-ceo-sundar-pichai-ai-artificial-intelligence-fire-electricityjobs-cancer.

https:// www.uspto.gov/web/offices/pac/mpep/consolidated_laws.pdf.

Patent Act of India. (1970). Patent Law in India. Retrievedfrom http://www.ipindia.nic.in/writereaddata/Portal/IPOAct/1_31_1_patent-act-1970.

Sambhar, I. (2019). Copyright and Artificial Intelligence.Retrieved from https://www.mondaq. com/india/x/852902/Copyright.

WEST,F.(2016).Can a computer be an inventor. Retrieved fromhttps://casetext.com/case/townsend-v-smith/posts/can-a-computer-be-aninventor.


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RECRUITMENT OF IT PROFESSIONALS IN MALAYSIA:CHALLENGES FACED BY L&T INFOTECH LIMITED, MUMBAI

Arjita Jain*, Sandeep Ponde*

Hiring people from across the world and placing them transversely the globe according to thebusiness need of an organization is known as global recruitment. On the basis of global operationsorganizations decide on their recruitment approach. A study was carried out to understand theprocess of global recruitment and associated challenges faced by L&T Infotech Ltd. while placingthe candidates in Malaysia. Both qualitative and quantitative data has been used for the study.Data analysis revealed that the L&T Infotech Ltd, Mumbai practices mainly ethnocentric,polycentric and geocentric approaches for international recruitments. The biggest challenge wasto identify the pitfalls in placing the candidates at Malaysia, finding a suitable partner, to knowreasons for drop outs, to analyze the gaps in salary determination and to understand the lawsgoverned by Malaysia. It was found that delay occurred in the second level (client interviewprocess) between client interview of candidate and feedback from client end and the gaps insalary determination. The delay occurred due to the inconsistent communication between Clientand the Sales Representative and the gaps in rates were occurred as market intelligence was notdone at initial stage.

Keywords: International Business, International Recruitment, Candidate, Client Interview,Salary Determination, Placements, Challenges.

INTRODUCTION

Globalization of business has added to thenumber of multinational enterprises acrossthe globe, so companies has got theopportunities of greater mobilization ofhuman resources. To accomplish theorganizational objectives on the global level,company should decide the set of activitiesand on the basis of those activity try tomanage organization on the global level. Tosustain in global environment across theglobe organisations, need Global HumanResources Management (GHRM). GHRM isthe activity or process of managing humanresources in companies on the basis of globalenvironment under the internal and externalboth types of context. The effectivemanagement of human resources isrecognized as a major determinant of successor failure in international business. Presentlycontinuous acquisition, development,motivation and retention of manpower for

managing global operations are commonchallenges faced by many multinationalcompanies. Underperformance or failure inoverseas assignments is costly, both inhuman and financial terms which affect theinternational business of any MNC. Hence,organizations adopt different approaches forrecruiting employees for global operationslike ethnocentric, polycentric, geocentric andregiocentric approach etc.

Selecting the candidate only from the citizensof the parent country to work in host nationsis ethnocentric approach. Restrictingrecruitment to the nationals of the hostcountry is polycentric approach. Recruitingthe most suitable persons for a positionregardless of their nationalities is geocentricapproach. Hiring professionals fromdifferent countries within the geographicregions of a business is regiocentricapproach.

* Professor, NCRD’s Sterling Institute of Management Studies, Mumbai


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Each of these approaches has their ownadvantages and disadvantages. That’s whyrecruitment practices vary from one MNC toanother MNC. Some MNCs prefercentralized recruitment where in some preferdecentralized recruitment.


Anand et. al. (2018) explored the usefulnessof the recruitment process. Relationshipbetween the demographic and individualfactors was sought by the researchers. DataAnalysis and interpretation revealed thatthere is a moderate positive correlationbetween age and organization which offerstraining programs as recruiters. Negativecorrelation between age and organizationwhich offer different methods of training wasobserved. Findings revealed a positivecorrelation between experience and therecruitment policy of the organization.Mamoon (2013), in his study suggested righthiring process and its elements. The authorhas recommended guidelines how hiringaverage can be increased. Set least numberof rules and take recruitment decision inpeace was suggested by the author. Mindiaand Hoque (2018), in their research, toidentified that e-recruitment and internet areinfluencing the overall recruitment processin the context of Multinational companies ofBangladesh. In this exploratory study,sample was drawn from the renownedcompanies and data was collected fromvarious levels of respondents in context ofthe job seekers. Data analysis andinterpretation revealed about e-recruitmentpractices and processes, recommended e-recruitment and online sources for hiringcandidates.

Mankikar (2014) revealed about role of HRconsulting firms in talent acquisition. Samplesize was 105 respondents. Hypothesis wastested with Chi square test of independence.Researcher were of the opinion that therecruitment policy is determined by thenature of work and industry in which acompany operates.

International recruitment process uses someshort forms like Staffing RequirementSpecification (SRS), Business Unit (BU),Special Competency Group (SCG), CentralRecruitment Head (CRH), Talent Acquisition(TA), Job Description (JD), Level -1 (L1), WorkOrder (WO), Pay Sheet Number (PS No.), Yetto Join(Y 2J).

Figure 1: Recruitment Process Flow Chart ofL&T Infotech, Mumbai


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Source: HR Department, L& T InfotechLimited, Mumbai

(Developed by Authors)

Skill Wise: Lead Time Sample data of JoinedCandidate from CV source to Joined forMalaysian Local (Malays) and ExpatriateCandidates

Tables 1 and 2 reveal that placing thecandidate was challenging for skillsmentioned in the tables. Pool availability inMalaysian market was limited. Also, Malaysdid not prefer job change for short durationproject and also were not interested tocompromise. They always look for long termopportunity of good package available inlocal market as compared to L&T jobs andalso not to prefer relocation as some of theagencies are restricted to Metro cities inMalaysia. As the CV sourced was alreadyworking at client side and because of delayfrom the client end and their interview andfeedback Process Company was facing theproblems. Another major issue was lack ofcommunication between hierarchiesinternally and Sales Representative due tothis, client has closed the recruitment processand people felt that their time was wasted.

The reasons why Malaysian companiesprefer to hire local candidates only becauseMalays are often cheaper and alreadytrained. No long procedure for Visa hence,no waiting for the same. There were nolanguage and culture barriers to hire localpeople. Company has also thought thatMalaysian people are more tolerant towardsthe cultural difference, they were able tointegrate better and also there was noproblem of candidate security.

As per the literature, scalability was one ofthe major challenge, (Anand and Cintra 2018;Kaur, 2015; Tang, 2008). Some morechallenges were lack of comprehensiveknowledge about Malaysia, taxes, currencies,culture and languages etc. Global operationswere continuously being affected bychanging economic and politicalenvironment of Malaysia. Company hasknowledge about the laws and regulationsof the Malaysia, also the risks associated with

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potential expansions into emerging markets.Leveraging global buying power, businessalignment and cost containment andcorporate governance are few commonchallenges they were facing. One more studyfound that consultancies in multiple areaslead to escalating costs, unnecessary delays,and several points of accountability reduceservice delivery (Tong and Sivanand, 2005).Also and candidates were more concernedabout the tenure of the contract. Some ofthem did not prefer for subcontract projectrequirement and at the time other preferredpermanent employment.

Cultural stereotypes also play an importantrole in determining the fate of theoutsourcing deal. Some agencies wererestricted to Metro cities in Malaysia. Theconsultants could not compete withcustomer on the basic services on the basisof cost as when they have to hire anycandidate on their payroll they find theshared cost from customer end was at lowerside as they have to bear many expensesranging from salary, accommodation, taxes,flight charges, medical insurance and thepaid leaves for Malaysian national holidaysplus annual leaves.

In the present study it was also found thatchallenges were faced in dropout and salarydetermination. Some of these realisticsituational cases are discussed below inannonymous form to understand the subjectwith clarity.

Case 1

The ABC Company based in Malaysia hasopen requirement for skill Hadoop in KualaLampur, Malaysia. The ABC Companydecides to share the requirement to XYZCompany. The project duration is one year,the years of experience is more than twoyears and the billing rate for each candidateis 15000 MYR per month. However, the Clienthas condition that they need local candidates(reside in Malaysia-Malays or Expatriate with

valid EP). The XYZ Company shares therequirement to its partner based in Malaysiawith billing rate of 12000 MYR per month tofulfill the requirement. The partners foundsome resume where in P candidate expected10000 MYR per month. The candidate waslocated in Penang and was ready to relocateto KL where the partner has to bear thefollowing expenses behind him. The EPcharges 500 MYR annually, withholding taxat 10 percent, accommodation at 600 MYRfor 15 days, family visa pass 300 per monthfor each person, Annual leaves (14 days) plusMalaysian National holidays (16 days), to nfro flight charges at 1000 MYR, margin 20percent, Medical Insurance 1000 MYRannually. It comes to round 14000 MYR permonth. Thus, the rates are high howeverthe XYZ Company was not able to take aheadthis candidature ahead.

In case 1, the reason that can be inferred forrecruitment failure, can be attributed to thefactor of the potential candidate expectingmore than the actual requirement of thecompany.

Case 2

The ABC Company based in Malaysia hasopen requirement for skill IBM MQ in KualaLampur, Malaysia. The ABC Companydecides to share the requirement to XYZCompany. The project duration is one yearand the billing rate for each candidate is12000 MYR per month. However, the Clienthas condition that they need local candidates(reside in Malaysia-Malays or Expatriate withvalid EP). The XYZ Company shares therequirement to its partner based in Malaysiawith billing rate of 10000 MYR per month.The partners found some locals resumewhere in P candidate expected 5000 MYR permonth. The candidate was located in Penangand was ready to relocate to KL where thepartner has to bear the following expensesbehind her EP charges 500 MYR annually,withholding tax at 10 percent,accommodation at 600 MYR for 15 days,


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cleared the L1 Interview. The next round wasClient Interview however the round gotdelayed for 3 weeks. Parallel, the candidateP got another offer of more than thispackage. Hence, he joined another Companyand dropped his candidature.

In case 3, the reason that can be inferred fordropouts of candidates during recruitment,can be attributed to the factor of delay inconducting and finalizing interview withclient.

CONCLUSION

The study carried out was to identify thechallenges faced with respect to recruitmentof IT professional in Malaysia. Hiring locals(Malays) was challenging and dauntingprocess. Researchers gathered insight onvarious dimensions as well as challengesinvolved in recruiting the IT professional inMalaysia. Issues were ranging from findinga partner, analysing the gaps in salarydetermination and expatriate failures as wellas the associated costs. As per the primarydata, it can be concluded that the challengingpart was delayed occurred in the second level(Client Interview Process) between ClientInterview of candidate and feedback fromClient end and the gaps in salarydetermination. The delay occurred due to theinconsistent communication between clientand the sales representative and the gaps inrates were occurred as market intelligencewas not done at initial stage. However, thisfact cannot be overlooked; the salesrepresentative shall be in consistentcommunication with the client and get theclarity for the requirement and theinterviews. The other factors like hiring theexpatriate with preferred knowledge andexperience are important to be considered.The chosen expatriate must have goodknowledge about the host country, itsculture, tradition, values along with somepast knowledge and experience.

Annual leaves (14 days), Malaysian holidays(16 days), to n fro flight charges at 1000 MYR,Margin 20 percent. It comes to round 10000MYR per month. Thus, the rates were fittinginto the XYZ Company ’s Budget. Thecandidate was asked for Client Interview,however, it went on rescheduling for threetimes and then the position was on hold.Later, after a month, the position was openedand the same candidate was asked if she isstill available for the requirement. However,due to delay in the process the candidate lostthe trust and dropped her candidature.

In case 2, the reasons that can be inferred fordropouts of candidates, during recruitmentprocess, can be attributed to the factor ofcandidate, losing trust in client due tounnecessary delay of interview.

Case 3

The ABC Company based in Malaysia hasopen requirement for skill C Sharp Developerin Kulim, Malaysia. The ABC companydecides to share the requirement to XYZcompany .The project duration is ninemonths and the billing rate for eachcandidate is 9000 MYR per month. However,the Client has condition that they need localcandidates (reside in Malaysia-Malays orExpatriate with valid EP). The XYZ Companyshares the requirement to its partner basedin Malaysia with billing rate of 7000-7500MYR per month. The partners found somelocals resume where in P candidate expected4000 MYR per month. The candidate waslocated in KL and was ready to relocate toKulim where the partner has to bear thefollowing expenses behind him- applicablewithholding tax, accommodation at 500 MYRfor 15 days, annual leaves (14 days) andMalaysian holidays (16 days), to n fro flightcharges at 1000 MYR, Margin 20 percent. Itcomes to round 7500 MYR per month. Thus,the rates were fitting into the XYZCompany’s Budget. The Candidate waspreceded for L1 Interview. Fortunately, he

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SUGGESTIONS ANDRECOMMENDATIONS

As the History binds us together inlanguages, culture and food are popular inMalaysia and India; the expatriate would bemore convenient to adopt the Culture. Lackof readily available local talent in Malaysia,there is a need to hire expatriate. It is a factthat cultural differences influence theselection procedure; organizations mustfollow different criteria and methodsworldwide. Right attitude and skills, culturaladaptability, motivation and personality areessential selection criteria for anyinternational jobs. Malaysia has been astrong driver of economic returns andconnectivity between the people of India andMalaysia is good. This leads lesser risk foroverseas entrepreneurs and investors inMalaysia.

References

Anand, J. and Chitra D. (2016). The Impact of E-Recruitmentand Challenges Faced by HR Professionals, InternationalJournal of Applied Research, 410-413.

Anand, V.V., Shanthanlakshmi, M., Srinivasan, U. G.,Arunkumar V., Icewarya S., Nandhu and Kamatchi, S. M.(2018). A Study on Effectiveness of RecruitmentOrganizational Support in ITes, International Journal of Pureand Applied Mathematics, 119 (7), 2755-2764.

Kaur, P. (2015). E-Recruitment: A Conceptual Study.International Journal of Applied Research, 78-82.

Mankikar, S. (2014). A Critical Study on Recruitment andSelection with Reference to HR Consulting Firm, Paripex IndianJournal of Research, 3 (3).

Mamoon, Z. (2013). Hiring the Right People for yourOrganization, Global Journal of Management and Business ResearchAdministration and Management, 13 (8).

Mindia, M.P. and Hoque, K. Md. (2018). Effects of E-Recruitment and Internet on Recruitment Process: AnEmpirical Study on Multinational Companies of Bangladesh,International Journal of Scientific Research and Management,06 (01).

Tong, D. Y. (2008). A Study of E-Recruitment TechnologyAdoption in Malaysia. Industrial Management & Data Systems,109 (2), 281-300.

Tong, D. Y. and Sivanand, C. (2005). Service Providers Review:International and Malaysian, Employee Relations, 27 (1), 103-17.


105Recruitment of IT Professionals in Malaysia: Challenges faced by L&T Infotech Limited, Mumbai

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ROLE OF IBC IN NPA RESOLUTION IN INDIA

Avijit Bakshi*, Somen Mitra**

Insolvency and bankruptcy code (IBC) 2016 is the new bankruptcy law of India which aims toconsolidate the existing different laws into a single law. The objectives of the paper was toanalyse the regulatory aspects of IBC; to evaluate the progress made so far in Corporate InsolvencyResolution Process (CIRP); to examine the status of the case of big defaulters that have beenreferred to NCLT and critically examine the regulatory aspects of IBC. It indicates that theresolution process could not fetch encouraging value as lenders face a substantial haircut intimes of settlement of stressed assets. The exposure of steel, power and engineering, project andconstruction sector is highest in the RBI’s big defaulters list referred to NCLT. However, oneyear after RBI’s decision to refer 12 big defaulters to NCLT-1, only two cases – Bhusan Steeland Electrosteel have been resolved. The slow resolution process is ascribed to lack of interest inbidding in certain sectors and promoters’ intention of delaying the settlement process throughlitigation. The rationale of the current study is to discuss in detail the IBC and NPA in India.Along with this the study also attempts to evaluate the current state of its performance.

Keywords: IBC, NCLT, Bankruptcy Codes, Resolution, Liquidation, Banking, Non performingAssets

INTRODUCTION

The Indian banking sector is saddled withNon – Performing Assets (NPAs) amountedto INR 7.918 billion of which Public SectorBanks’(PSBs) share amounted to INR 6.847billion as on 31st March 2017. The assetquality of PSBs deteriorated during the year2017 with the Gross Non-Performing assets(GNPA) ratio rising to 11.7 per cent from 9.3per cent in 2016. This is substantiated by thehigh slippage ratio – the ratio of fresh NPAsto standard advances which was at over 7per cent for PSBs. All large loan accounts withany sign of stress (including special mentionaccount-0[(SMA-0), SMA-1, SMA-2]1, NPAsand restructured loans) accounted for about32 per cent of the total funded amountoutstanding of PSBs. This suggests persistingstress on the asset quality of the bankingsystem. An estimate of RBI reveals that largeborrowers who have an exposure of Rs. 5crore or more accounted for about 86.5 percent of all NPAs, while their share in totaladvances was 56 per cent by end of March2017. (RBI, 2017)

In India, the present legal and institutionalmechanism for managing the stressed assetsare through the Indian Contract Act, 1872 orthrough the Recovery of Debts Due to Banksand Financial Institutions Act, 1993 and theSecuritisation and Reconstruction ofFinancial Assets and Enforcement of SecurityInterest(SARFAESI) Act, 2002. The SickIndustrial Companies (Special Provisions)Act,1985 and the winding up provisions ofthe Companies Act, 1956 was aimed toadminister various aspects of a corporaterescue and/or insolvency process, speedyrestructuring of indebted firms (RBI, 2017).

Moreover, both the RBI and governmenttook initiatives in order to rescue thecorporate in recent years e.g. Corporate DebtRestructuring (CDR), Flexible Structuring ofLong Term Project Loans to Infrastructureand Core Industries – 5/25 Scheme, SMA1,Strategic Debt Restructuring (SDR) andScheme for Sustainable Structuring ofStressed Assets (S4A). All these several lawsadministered various aspects of a corporate

* Assistant Professor, CMS Business School, Jain University, Bangalore.** Assistant Professor, Prestige Institute of Management and Research, Indore.


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rescue and/or insolvency process, withouthaving a wide legal framework that envisagesa comprehensive process applicable totroubled or defaulting companies.

At this backdrop, a landmark developmentis the Insolvency and Bankruptcy Code(IBC), 2016 enacted and notified in theGazette of India in May 2016 (Narang, et. al,2018). The President of India signed theBanking Regulation (Amendment)Ordinance, 2017, on May 5, 2017. Thisordinance empowers the Reserve Bank todirect banking companies to initiateinsolvency proceedings in respect ofcorporate borrowers in default, under theprovisions of the Insolvency and BankruptcyCode, 2016 (IBC). It also enables the ReserveBank to constitute committees to advisebanking companies on resolution of stressedassets.

Following this, the Reserve Bank released adetailed action plan to implement theOrdinance on May 22, 2017. An InternalAdvisory Committee (IAC) constituted by theReserve Bank held its first meeting on June12, 2017. The IAC recommended that allaccounts with an outstanding amount greaterthan Rs. 50 billion, and with more than 60per cent classified as non-performing bybanks as on March 31, 2016 be resolved usingthe new IBC. Using these criteria, 12 accountsaggregating to around 25 per cent of thecurrent gross NPAs were referred to theNational Company Law Tribunal (NCLT), astatutory body responsible for judginginsolvency proceedings under the new IBClaw (RBI, Annual Report, 2017).

The paper attempts to critically analyseregulatory aspects of IBC; evaluate theprogress made so far in corporate insolvencyresolution process (CIRP); examine the statusof the cases of big defaulters that havereferred to NCLT. The study analysis theperformance of IBC and NCLT after one ofits functioning in Indian economy.

Regulatory Features of IBC

In time of a business failure, resolution hasto be done at the earliest and expeditiously.Any undue delay in starting or finishing theresolution might lead to flight of keystakeholders and deteriorate the chances offailure sometimes beyond repair. Ifresolution is not possible, an orderly exitmechanism should allow stakeholders torecover their dues from liquidation proceedsof the business and free up resources forreallocation. However, this is not howbusiness failures were addressed till recentlyin India.

The bankruptcy resolution of a financiallydistressed firm can be done by any of thefollowing two approaches:

i) The process of winding up ofbusiness by selling assets to satisfycreditors’ claims i.e. liquidation

ii) Restructuring of firm’s debt

Indian bankruptcy procedures are governedby two Acts: (1) SICA; and (2) IBC

In order to deal with industrial sickness byway of closure or revival, if possible, the SickIndustrial Companies Act, 1985 (SICA) wasenacted.

Two quasi-judicial bodies were establishedunder SICA

Board for Industrial and FinancialReconstruction (BIFR) and

Appellate Authority for Industrial andFinancial Reconstruction (AAIFR)(Tyagi, V. 2018)

By any standard the BIFR, on which highhopes had been placed failed to live up tothe expectation which is envisaged in thespeech of Ex-Finance Minister Mr. ArunJaitley “The SICA experiment was an absolutefailure. It was brought in with an idea thatcompanies which are sick would be revived

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irrespective of whether they were capable of beingrevived or not. The only effective purpose it servedwas that the debtors got an iron curtain aroundthem. Then the iron curtain, which prevented thecreditors from making recoveries, continuedindefinitely. Therefore, effectively there was verylittle purpose that the SICA was able to achieve forwhich it was created.”(Jaitley, A, 2017)

The IBC provides for a single window, time-bound process for resolution of an asset withan explicit emphasis on promotion ofentrepreneurship, maximisation of value ofasset, and balancing the interests of allstakeholders.

The institutional infrastructure under theIBC, 2016 rests on four pillars, viz.

insolvency professionals (they assistin the completion of insolvencyresolution, liquidation andbankruptcy proceedings)

information utilities (maintainingelectronic databases on lenders andterms of lending, thereby eliminatingdelays and disputes when a defaultactually takes place)

the Insolvency and Bankruptcy Boardof India (IBBI) (has regulatoryoversight over insolvencyprofessionals, insolvency professionalagencies and information utilities)and

adjudicating authorities NationalCompany Law Tribunal (NCLT) andDebt Recovery Tribunal (DRT). WhileNCLT will deal with rehabilitation andrestructuring matters, DRT will lookafter loan recovery if not feasible forrehabilitation and restructuring.These institutions, along with theirAppellate bodies, viz., the NationalCompany Law Appellate Tribunal(NCLAT) and the Debt RecoveryAppellate Tribunal (DRAT),respectively, will seek to achieve

smooth functioning of thebankruptcy process. (RBI, 2017, pp.53-54)

A two step resolution procedure wasproposed in IBC.

i) Insolvency Resolution Procedure(IRP)

ii) Liquidation

i) During the insolvency resolution period ofmoratorium which is 180 days and can beextended by another 90 days, themanagement control will be passed on toresolution professionals who will come upwith an insolvency resolution plan which hasto be approved by lenders with a supermajority and also by NCLT.

Therefore, it can be said that the IBCemphasizes on the concept of ‘Creditors inControl’. IRP allows creditors to examine thefeasibility of a business as a going concernor to go for liquidation. This is a significantprocedural departure from SICA, whichfollowed a debtor-in possession bankruptcyprocedure. Both Operational and FinancialCreditors can initiate insolvencyproceedings. Operational creditors likeworkmen, employees, suppliers have beenrecognised to be important stakeholders inthe resolution process. It is, therefore,understood that the interests of each classof creditor has been addressed in thecollective decision making for drawing up theresolution plan. On the other hand, aCorporate Debtor can also initiate InsolvencyResolution Process by making an applicationto the NCLT. A debtor may be a small-scaleenterprise or even a well-establishedcompany. However, the code takes away thecontrol from such Corporate Debtor duringinsolvency process. The CIRP is shown inthe figure 1.


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Figure 1: Corporate Insolvency ResolutionProcess

Source: http://www.mca.gov.in/Ministry/pdf/TheInsolvencyandBankruptcyofIndia.pdf, accessedas on 8th June 2018ii) If IRP does not succeed, the adjudicatingauthority under the law will pass a liquidationorder on the insolvent company. The priorityfor distribution of liquidation proceeds underIBC is depicted in figure 2.Liquidation is imposed if:1. IRP ends2. Resolution plan is not submitted to

NCLT3. Resolution plan is not approved4. Creditor ’s committee approves

liquidation (with 75 percent majority);5. Resolution plan has not properly

been implemented

Figure 2: Priority of Claims under IBCSource: https://www.icsi.edu/portals/2/PPT/Gurav-IBC-230317.pdf

The threat of liquidation, which couldpotentially result in larger losses for thecreditors as a whole, is sufficient incentivefor them to ensure efficient coordinationduring the insolvency resolution period soas to quickly arrive at a decision. For thepromoter, the biggest cost of being pushedunder IBC may be the possibility of losingthe firm to potential bidders. This shouldincentivise the firms to avoid defaults andnot over-borrow in the first place. This wouldimprove ex-ante the credit culture in thecountry. (Patel, 2017)

The secured creditors with more than 75 percent share in total debt will be allowed to filean application for the rescue of the companyat a sufficiently early stage, rather than waitfor the same to have defaulted on 50 per centof its outstanding debt, as currentlyprovided in Companies Act, 2013. Evenunsecured creditors representing 25 per centof total debt shall be allowed to initiate rescueproceedings against debtor company.

All existing laws that deal with theinsolvency of registered entities will beremoved and replaced by single code.Notwithstanding, the provision of replacingexisting laws (SARFAESI, RDDBFI etc.) by IBCencourages the defaulting firms to take resortof NCLT with mala fide intentions ofdefeating the claim of the secured creditorand delaying the enforcement of the securityand recovery proceedings as pronounced incase of SBI vs. Gemini Innovations. Thecompany ’s lender, State Bank of India,opposed the application under the IBC,saying that insolvency proceedings wouldhamper the process to recover loans. TheNCLT has dismissed the insolvencyapplication filed by Gemini Innovations,raising doubts over the “unnatural” factslisted by the company in its filing (EconomicTimes, April 11, 2018).

In order to further strengthen the insolvencyresolution process, the Government hasnotified The Insolvency and Bankruptcy


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Code (Amendment) Ordinance, 2017 onNovember 23, 2017. The Ordinance providesfor prohibition of certain persons fromsubmitting a resolution plan and specifiescertain additional requirements forsubmission and consideration of theresolution plan before its approval by theCommittee of creditors (COC).

Evaluate the Progress of CIRP

In this section an attempt has done to assessthe performance of NCLT in resolving CIRP,nature of cases undergoing CIRP and alsoanalyze the status of big defaulter casesdeclared by RBI those have been referred toNCLT.

Out of 540 cases admitted for resolution in2017, only ten companies resolution plan isapproved and liquidation process has beenstarted for thirty companies which signify461 cases remained unsettled during the year.The detail of resolution of those tencompanies is depicted in Table 2.

Table 2 indicates that in 50 per cent casesresolution interest is shown by the borroweritself which depicts their endeavour toprotect the company going into liquidation.The lenders face a substantial haircut2 sincerecovery from stressed accounts ranges from5.63 per cent to 62.41 per cent barring the caseof Prowess Int. Pvt. Ltd where due amountis just Rs. 3.42 crore.

The haircut of NPAs is evidenced by lowrealisation to liquidation value ratio alsowhere in some cases realisation amount iseven below liquidation value.

A noteworthy point is that the operationalcreditors have been the most powerful in theinitiation of insolvency proceedings, thoughthe number of financial creditors taking thehelp of NCLT for resolution is alsosignificant. It is relevant to mention here thatthe claim admitted is higher than the lendersdefault as it also includes other creditorsincluding operational creditors.

Chart 1 and 2 indicates the contribution ofvarious sectors by number of accounts andvalue towards NCLT 1 list.

Chart 1: Sector-wise Distribution of NCLT 1List as per Number of Accounts of

Companies

Source: Compiled by Authors

Chart 2: Sector-wise Distribution of NCLT 1list as per Total Exposure of Companies


Although the IBC was approved in May2016, the activity under this code has pickedup significantly only from July 2017 after RBIidentified 12 large accounts forming 25percent of the banking system’s GNPAs forresolution under the IBC. The latest positionsof those 12 accounts are discussed in table 5.

On August 30, 2017, the RBI prepared thesecond list of 40 defaulters to be referred toNCLT. The major names are given in table 6.

Chart 3 and 4 indicates the contribution ofvarious sectors by number of accounts and


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value towards NCLT 2 list.

Chart 3: Sector-wise Distribution of NCLT 2list as per Number of Accounts


Chart 4: Sector-wise Distribution of NCLT 2list as per Total Exposure of Companies


It may be inferred from above analysis thatSteel (Metal) and Engineering, Procurementand Construction (EPC) sector form bulk ofthe NCLT referred cases (64 percent in thetwo NCLT lists together). Hence, healthyrecovery in these sectors are critical to thesuccess of NCLT referred cases.

The chances of recoveries in stressed steelsector appears to be high as higher interestis observed among investors for steel sectoras witnessed in Bhusan Steel andElectrosteel case. Demand revival in the steelsector has also led to an improvement in

recovery for companies from the sector. Thepower ministry identified 34 stressed thermalpower plants out of which ten (total loans ofRs. 39,400 crore) have already been referredto NCLT, and another eight (loans of Rs.36,500 crore) are set to be taken to NCLTwhile some other power sector assets whichare expected to be resolved outside theNCLT, totalling loans of Rs. 67,000 crore. Theextent of stress in power sector at thesystemic level is well known. The concernlies in the lack of possible solutions to resolvethese stressed assets. The earnestness oflenders to find bidders may result in lowrealisation value and high haircut for banks.Moreover, the recent Supreme Court rulingto halt the insolvency proceedings againstdefaulters in power, sugar, textiles, shippingsectors hours before the bankruptcy processwas about to start might result in high haircutfor banks (Economic Times, September 11,2018).

The Indian Parliament received the assent ofthe President on the 18th January, 2018 toamend IBC, 2016 which explicitly prohibitpersons declared as wilful defaulter or thosehaving a history of siphoning funds from acompany, or convicted of fraud, fromsubmitting a resolution plan for companiesthat are going through the corporateinsolvency resolution process (TheEconomics Times, 2018). However, thebankruptcy code is being assessed by largedefaulted promoters as they are trying torecapture their assets through proxy bidderat a much lower price which they hadalready defaulted after heavy borrowing.

CONCLUSION

With the introduction of IBC, there is aparadigm shift in focus of Indian bankingfrom recovery to resolution. The promotersare cautious about possible consequence ofgetting referred to NCLT due to the fact thatif resolution is not finalised within stipulatedtime the company might go into liquidation.The total number of resolved cases in


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comparison to total number of cases referredto NCLT in 2017 is also not inspiring.Therefore, banks should not resort to IBC ineach and every defaulting case because bigdefaulter list of RBI referred to NCLT in twophases could not unlock encouraging valuefor lenders. The steel, power and EPC aremost contributory sectors towards referredcases to NCLT. Although the steel sectorwitnessed some interested bidder, amid theglobal upswing in the steel cycle resultinglow haircut for banks, the recovery andresolution in power sector is caught inlitigation in Supreme Court. Only two out oftwelve cases in NCLT- 1 list the resolutionprocess has been successfully completed.The low success rate of settlement throughNCLT is attributed mainly towardspromoters’ intention of delaying theresolution process by litigation dragging onas witnessed in Bhusan Power and SteelCase. However in light of the facts it can befurther expected that IBC can change the faceof Indian industry in near future.

References

Narang, D. and Kaveri, V.S. (2018). NCLT Background andReview of Cases, The Indian Banker, 5 (6), 21.

Bibliography

Jaitley, A. (2017). Resolution of Stressed Assets: Towards theEndgame, Speech delivered atNational Conference on Insolvencyand Bankruptcy: Changing Paradigm, Mumbai, 19th August.

Patel, U. (2017). Resolution of Stressed Assets: Towards theEndgame, Speech Delivered at Inaugural Session of the NationalConference on Insolvency and Bankruptcy: Changing Paradigm,Mumbai, August 19.

RBI (2017). Annual Report, 95-99.

RBI (2017). Trend & Progress of Banking in India, 74-76.

Tyagi, V. (2018). Corporate Insolvency Resolution Procedure underIndian Insolvency and Bankruptcy Code, 2016: A ComparativePerspective, The Chartered Accountant.

Webliography

Das, S. (2018). NCLT Rejects Gemini Bankruptcy Petition,Retrieved from http://www. economictimes.com.

Gupta, D. (2017). IBC Ordinance will stop willful defaultersfrom Biding, Retrieved from http://www. economictimes.com.

Rawtray, S. and Singh, S. (2017). RBI deadline for bankruptcompanies: Supreme Court Strays Insolvency proceedingagainst Defaulters. Retrieved from http://www.economictimes.com.


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ROLE OF SOCIAL MEDIA IN INTERNET MARKETING: A TOOL TOIMPROVE BRAND LOYALTY

Pooja Lawande Karmali*

Marketing has come to an of age where brands are used by companies for growth. Brands areleaving no stone unturned to connect with its customers and building a long term relationshipwith them. One such important medium is the social media. Social media signifies web basedtools that facilitates social interaction. Social media today plays an important role in not onlyconnecting people, but also in giving marketers a platform to communicate with its current aswell as potential customers. In marketing, social media is used as a tool for communication bythe company to ensure that they are accessible to people interested in their product as well as tocreate awareness of their product for people who are not aware about them. Various onlinecampaigns have proved to be a boon for many brands and made a significant contributiontowards improving brand loyalty. There are enough success stories as evidences to reiterate theimpact of social media, whether it is in the field of headhunting, launch of new products or evento strengthen an existing brand of a well established Fortune 500 company. In this paper, wedraw together previous research that explains how Social Media Marketing (SMM) elementssuch as content and frequency of brand communication, personalization etc can lead to bettercustomer value, loyalty and commitment. This paper will also attempt to explore varioussuccessful social media campaigns that resulted in high levels of customer engagement.

Keywords: Social Media, Internet Marketing, Social Media Marketing, Customer Loyalty.

INTRODUCTION

Today, social media has acquired a pivotalpart in every person’s life. Websites such asTwitter, Facebook, Instagram and others havemillions of users, who are active on theseplatforms sharing information as well asdiscussing almost everything, whether it isa recent product they used or a restaurantthey visited. This is viewed by people all overthe globe emphasizing the need forbusinesses to have an active online presenceto capitalise on the popularity of thismedium.

Social Media is probably the way most of thepeople or companies will communicate infuture. It consists of many internet basedtools which facilitates information sharing.This allows easy sharing of information,photos, videos etc. It is a platform availableto people (often free), whereby they cancreate their own circles, communities,

networks, etc. to share/exchange informationin a virtual world.

Creating a website is important for everybusiness. But being on social media is equallyimportant to expand your reach. Brands thatdo not exist on social media may miss outon countless marketing opportunities. Socialmedia websites present a huge base ofpotential customers to businesses along withan opportunity to make use of its volumeeconomy as well as access to communicationtargets with zero cost. The success stories ofthe two extremely popular sites Facebookand Twitter is enough encouraging. From 100million active users in 2008, Facebook hasrisen to over 1.40 billion currently. Twitteralone has over 270 million active users.Through social media, companies get aplatform to form relationships with a widecustomer base, share information withregards to its business as well as get anopportunity for networking.

* Assistant Professor (BBA), Sridora Caculo College of Commerce and Management Studies, Goa


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Marketers in the last couple of years haveresearched on how the relationship betweencustomers or prospective customers and thecompany can be enhanced. Gronroos (1994)initiated a debate where a substantial shiftfrom transactional marketing to relationshipmarketing was declared. It was concludedthat marketing is a social process which ismultifaceted which makes the traditional 4P’sof marketing irrelevant and obsolete becauseof alliances, strategic partnerships and otherevolving business trends. The basis of thestudy was to get insights by investigating therelationship between brand loyalty andsocial media from a business point of view.Even though a lot of research has been doneon advertising and social media, its impacton brand loyalty has not been investigatedenough (Palmer and Lewis, 2007, Tuten, 2008,Webber, 2007). However, the research byHarris (2011) titled, building a personal brandthrough social networking is a study that isthe closest in terms of social media andbranding. In his Harvard Business Reviewarticle, Di Pietro (2012) has tried to touch uponthe social media impact from a personal view.Ernst et. al. (2011) research study concludedthat brands are slowly making changes intheir advertising priorities to coincide withbuyers of today ’s generations that areinternet savvy and social media fanatics.

The significance of creating brand-consumerengagement with regards to higher profits,customer satisfaction and loyalty has beennoted by researchers (Palmatier, et. al., 2006).Social media sites such as Facebook andTwitter have become vital component forcompanies who try to develop close onlinecustomer relationships; and on the otherhand, they provide an online platform to theconsumers that helps in broadcastingpersonal evaluations of products andservices (Chen et. al., 2011). A study ofconsumer-brand engagement (Haven, 2007)revealed the central role played by the

growth in social media activity with regardsto friends and peer recommendations,reviews of product and other user generatedcontent considering the fact that as many astwo-third adult Internet users in the U.S arealso active social media users (Peppers, 2004),marketers are using all possible touch pointsto engage the young consumers (Shankar et.al., 2011).

Since a significant number of customers usesocial media as one of the main sources intheir purchase decision process, it allowscompanies to make their presence andpromote own brand. By posting relevantcontent on its social media, companies canget an opportunity to promote their productsto current as well as potential customers ona daily basis and thereby increase onlineawareness and recognition. In 2018, anestimated 2.65 billion people were found tobe active social media users worldwide.Companies try to grab each and everyopportunity, that allow them to shareinformation to strengthen or market theirbrand through blogs, infographics,whitepapers et. al. by developing contentmarketing strategies. Consumers can alsodirectly interact with companies throughsocial media. There is an invaluableopportunity for organization to buildcustomer loyalty and strengthen its brandimage if they are responsive and attentive toits customers.

Interpersonal interaction with customersallows humanization of the brand which isvery important in a virtual world, wherebycustomers can attach a certain personality ora face to a business which can facilitaterapport building and even help themconnect emotionally with a particularbusiness (brand) (Andrew, et. al., 2012).

Social media allows people who are reputedand influential to give their opinions forcompanies and endorse their products. Forexample, behind the scenes information,blogs, etc. is a part of Microsoft’s LinkedIn


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page which provides invaluable informationfor various businesses. Endorsement fromwithin these groups can be facilitated bysocial media which can act like their owntrusted friends circle. Rashtchy et. al. (2007)Marketers have now realised how contactingregularly can affect the building andsustaining of relationships with customers.Digital channels being cost efficient andallowing interaction makes it easy for theongoing dialogue between the customer andthe enterprise (Deighton and Barwise, 2000;Peppers and Rogers, 2004). The frequencyof contact between marketers and theircustomers has increased which can improvethe level of interaction and personalizationat minimum cost.

With the emergence of social media, the waysof interacting with customers has altereddrastically, therefore, companies must makesure that social media is an integral part oftheir business plan and use it consistentlyand effectively (Mangold and Faulds, 2009).Social media is no longer a mere medium forpeople to stay in touch with their friends andfamily. It is now a place where customers canget more information about their favouritecompanies and its products. Retailers andmarketers are making use of these websitesas an additional medium to reach itscustomers and even provide a new way todo their shopping. New touch points formarketers are now available, thanks to thetechnological advancements such asimproved search engines, advanced mobilesoftwares and applications, online socialnetworks etc. (Sinclaire et. al., 2011).

Research conducted by Ferguson and Rick(2008) which has made use of TAM has notedthat enjoyment is one of the main reasonswhy consumers use social networks forassisting their purchase decisions. Theresearch found that there was an element offun associated with Facebook whichmotivates people to pay more attention tothe brands promoted on Facebook.

Quoting Di Pietro and Pantano (2012)Facebook promotes a consumer to consumerapproach, exploited by consumers to shareexperiences and create a commonknowledge on products and services; on theother hand, it provides managers a directchannel for communicating with clientsthrough a business to consumer approach.Companies can improvise their Facebookpage content by even adding fun elementssuch as games, contests, and interactiveapplications, which can attract more numberof users Foux (2006). However, retailers alsoneed to be careful with the right use of wordsand take into account the consumer ’sattitudes when it comes to social mediamarketing.

Understanding how consumers perceivesocial media marketing will ensure moreeffective marketing strategies. In fact, sitessuch as Facebook are more effective thanother forms of advertising as it can giveaccess to the specific target market of retailersas it stores all the information of its users(Chu, 2011).

Retailers can get access to a lot of informationstored on social media which it can use tocreate better user experience with theirbrand. Retailers must look at out-of-the-boxideas to use social networking websites totheir benefit and not just look at it as amedium of advertising. Their objectiveshould be interaction with customers insteadof a one-way communication network(Sorescue, et. al., 2011). A lot of largeorganizations now look at social media as astrategic tool and even hiring experts tohandle their social media accounts.Consumers cannot be regarded as merereceivers of marketing messages as they usevarious platforms such as Facebook, Twitter,YouTube, etc. to review various products,narrate their experiences with regards tovarious products etc. (Sinclair and Vogus,2011). With such a high number of peopleparticipating in various discussions on social

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media, it is now imperative for every brandto be actively present on social media anduse it effectively to manage their virtual brandcommunication.

Impact of Social Media on Branding

A brand can be defined as the sum ofperceptions held by public about anorganisation. The place where we find mostpeople sharing opinions nowadays isundoubtedly the social media. There is ahuge percentage of people all over the globewho are very active on social media, whichis why organizations that worry about theirbrand image will neglect social media onlyat their own risk (Soumitra, 2010).

Social media gives marketers an opportunitynot just to connect with their existingcustomers but also make the prospectivecustomers aware of their brand. A socialmedia based contest or a campaign using afew popular influencers can do wonders toa brand. Social networking sites are used toimprove a company’s brand appeal andexpand their target market because “newtechnologies allow for more personal,targeted communications, as well asincreased consumer participation in thecreation of marketing and brand relatedinformation” (Cappo, 2003; Jaffe, 2005 as citedin Muñiz and Hugh 2010).

As per an IDC survey conducted in WesternEurope recently, it was observed that themain reason for adopting social media wasto increase the awareness of the companyand its products. Consumers now demandaccess to information at their ownconvenience rather than relying on fromtraditional sources of advertising (Rashtchy,et. al., 2007; Vollmer and Precourt, 2008).

Consumers are also making a more frequentuse of social media to search information toaid their purchase decisions (Lempert, 2006;Vollmer and Precourt, 2008). Social media isalso perceived by the prospective customers

to be more trustworthy as a source ofinformation as compared to corporate-sponsored communication (Curran et. al.,2006).

Plethora of available social media platformsaffecting brands in following ways:

Customer Engagement: One of thebest techniques of boostingengagement with its customer base isthrough social media. Even if thecompany makes an effort to put a fewrelevant posts every day on differentavailable platforms, it can be effectivein achieving loyalty, increasing brandawareness and finally improvingprofitability.

Promotions: Companies use differentways of promoting their product.Since a large number of people areactive social media users, that is oneof the media for promotion, sincepeople are always searching for theirfavourite brands online, hoping to geta few good deals or promotionaloffers, discounts etc. They can alsoget a sneak peak to the new productsthat will be launched shortly. By usingsuch promotions brands can increasetheir number of followers rapidly.

Word of Mouth: A trustedrecommendation is the best form ofadvertising, and the easiest way to getit is through social media. We oftentend to follow a brand that isendorsed or liked by our friends andfamily. If companies can attach areward for these endorsements bycustomers, they can in turn promotetheir product through their posts andword of mouth.

Marketing: A global marketingcampaign for a big brand can cost afortune, and there is also a lot of riskinvolved. Social media gives you a


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platform to test out new campaignsto targeted audiences, inexpensively.There is a lot of potential for brandsto utilise social analytics software tomeasure audience response in real-time and make strategic choices andadjustments.

Business Intelligence: Brands can tapinto a vast pool of intelligence abouttheir market by tracking opinionsover social media. They can findanswers to some questions like“Which countries or age groups speakpositively about their brand?Probable reasons why sales of acertain product are on a decline?What types of posts shared by thecompany get the most socialshares?”etc.

Enhanced Brand Recognition: Thehigher the frequency of your posts onsocial media, the greater the brandexposure and the more recognizable(and credible) the company, brand,product and business become.

More Customers: Though socialmedia does not guarantee a 100percent increase in sales, it cantpossibly hurt. In fact, sales expert JimKeenan in his research has noted thatin 2012, nearly 79 percent of thepeople dealing with Company Saleswho used social media in their processof selling had better results than theircounterparts who weren’t using it.

Higher Level of Trust throughLeveraged Credibility: Let us assumethat one of the major influencers inthe industry retweets the tweet, orlinks an article about one company onhis blog post or even interviewscompany’s representatives for anarticle on their website. What doesthis mean? What would it say aboutthe brand to the audience?

Fundamentally, it’s a win-winsituation for the company, some sortof a thumbs-up that confirms. Wehave a lot of trust in your brand toattach it to ours. That’s leveragedcredibility, and it facilitates the kindof trust imperative for brand success.

Navigating the New Digital Divide is a reportfrom Deloitte in the year 2015 whichobserved that customers who use socialmedia to aid their purchase decision andvisited a store after going through onlineinformation are 29 percent more likely tomake a purchase the same day. Anotherstudy from the ODM Group in 2011, notedthat as many as 74 percent of customersdepends on social networks to guide theirpurchasing decisions. That helps usconclude that social media can act both as aflag to alert potential clients to your brand aswell as a funnel to flow the same people toyour website, where it then becomes yourjob to convert them into your customers(Christine, 2012).

Successful Social Media Campaigns

Success stories of social media basedadvertising are abundant, irrespective of thesector. Many low social media campaignshave yielded exceptional results that havehelped companies achieve their bottom line,more than the other advertising forms whichcreated a huge cost burden. Mentionedbelow are some of the successful social mediacampaigns (Andrew, 2015):

Emirates: How they lured people tobuy a first class airplane ticket.Emirates’ marketing team not onlyensured their active social mediapresence comprising of eye candiessuch as interesting trailers of variousdestinations, their plane videos,correspondences to commenter’s, butalso made influencers a part of theircampaign by capturing their buyer’spersonas. They also uploaded a video


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featuring Jennifer Aniston as thebrand influencer. They evenupgraded Casey Neistat, a popularYouTuber from Business Class to FirstClass on a flight from Dubai to NewYork. He enjoys subscription of over6,258,716 subscribers which ensuredof over a billion views for his videos.Emirates was able to capture theattention of people with a first-handexperience video published byNeistat. He narrated his positiveexperience highlighting the cabin’sfeatures and perks which didn’tappear to be a sponsored post but atotally unscripted take. The video hasmanaged to get 27,600,002 views sofar and counting. After watching hisfabulous experience, you willprobably want to take the same flighttoo (Holly, 2013).

Red Bull: They leveraged the fullpower of social media campaign onInstagram by understanding howconsumers use social paths so thatthey could use them too. They did thiswith their #thissummer hashtagwhich they managed to trend. Thebasic objective of their Instagramcampaign was to boost awarenessand sales of their tropical flavored“Summer Edition” energy drinkwhich was meant for the Australianmarket. Red Bull kicked off theircampaign with a promotional teaserjust before the summer hit whichpaved the way for their actualcampaign. They even incorporatedyellow coloured image filters across arange of images and videosportraying summer days, to get theaudiences’ attention towards the newlook of the cans. The brand was twiceas likely to be associated with the#thissummer hashtag trend as any ofits nearest competitors.

Buzzfeed : Ever noticed these shorteasy recipe food videos popping upwhen you are using Facebook. That’sBuzzfeed TASTY. Undoubtedly, oneof the stand-out social mediacampaigns of 2016, Tasty hasmanaged to become one of thebiggest video accounts on Facebook.The shareable little videos that theyshared have ensured Buzz Feed 60million Facebook Likes and alsoexponentially increased the site’svisibility. The videos have beenextremely popular to the extent thatnow Buzz Feed has a team of as manyas 75 people working exclusively onproducing 60 Tasty videos per monthspecially for Facebook.

50 Million Smiles and Countingcampaign by Honey Bunches ofOats:The “50 Million Smiles andCounting,” was a campaign run byHoney Bunches of Oats. During thiscampaign they shared videos, images,and quotes from fans in the form oftestimonials where they focussed onthe fact that made so many peoplesmile across the country. This was inexchange for a chance to win an all-expenses paid trip. Through thisFacebook and Instagram campaign,they were able to add 162,000 newfans (a whopping 721 percentincrease) and increase userengagement and traffic to their pages.

Lenovo India : Lenovo conducted asocial media marketing campaigncalled #VibeUpMyLife which wenton for 72 hours. This revolved arounda Photo Challenge was a huge hit. Thechallenge was hosted on dedicatedmicrosite, created by the companyexclusively for this campaign. The#vibeupmylife campaign garnered aremendous response with more than1500 entries, 5M individuals


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connected on Facebook of which 80Kindividuals drew in around#VibeUpMyLife content onFacebook, while their Twitter earned585K impressions. It was noted thatover 10000 people engaged in Twitterconversations regarding thiscampaign and it drove layeredconversations and the hash tag#vibeupmylife received over 3000mentions on Twitter.

Philips Male Grooming : Philipssigned up actor Arjun Kapoor as abrand ambassador for their GroomingRange to inspire young men to get thetrimmed look. They started acampaign called #likeabrat. For this,they made a website with a plan toframe a section of easygoing stylingfor the young men of today. Thecampaign kicked off through a teaseron website which showcasedcharismatic shots of Arjun Kapoor,asking visitors to think about what hewas up to, thereby creating interestand encouraging conversations.Aspiring Brats were called to take partin the esteemed Brathood on website.The campaign managed to giveexposure to Philips brand with morethan 45 M hits while its brandcommunications crossed 4 lakhsaltogether. The hashtags#LiveLikeAbrat and #LikeAbratmanaged to trend on Twitter andgenerated over 28 M impressions.Over 10 lakh worth of earned mediawas acquired. The number of peoplewho visited the website crossed over1.1 lakhs. Above all, the campaigncame about into gigantic interest ofthe trimmer, prompting stockshortage incidentally (Calder, et. al.,2009).

Hindustan Unilever : A social mediacampaign called #BeBeautiful was

done by the company whichgarnered a total of 2.3 million visitorsthroughout the campaign. Out of this,6 lakh people came only through thesocial media handles. Be Beutiful alsohad a dedicated YouTube channel,with 50,000 subscribers and got morethan 30 million views. This was oneof the most watched beauty channelsin India due to its original content.The number of organic visitors alsoincreased from 15,000 to 2.5 lakhswithin a span of 5 months. The reachof the brands of HUL on #BeBeautifulwere: Dove – 830,000 organicimpressions, Lakme – 4.3 millionorganic impressions, Vaseline –890,000 organic impressions, Toni andGuy – 323,000 organic impressions,Pond’s – 275 organic impressions.They also have one of the mostsuccessful blogger engagement plansin India (Heinonen, 2011).

Starbucks : People are always lookingfor something unique and that isexactly what Starbucks decide tocapitalise on. They came up with alimited edition product called UnicornFrappacino and its social mediacampaign revolved around that. TheUnicorn Frappuccino gave Starbucksa huge amount of free mediacoverage and turned the customersinto a social media army that fueledattention for the limited-time offering,resulting in more number of footfallsin its stores so people could buy thisuniquely coloured, flavor-changingbeverage before it sold out. Peoplewent crazy about it and purchased itspecially to upload it on theirInstagram accounts. Over 150,000photos were uploaded with#unicornfrappuccino hashtag, thepink and purple color of the drinkcatered to most of the social mediaenthusiasts. Besides the media


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attention it received, it also openedup a new audience for itself. Peoplebecame aware of this product being anon-coffee product and a lot of kidsstarted visiting the store for kidfriendly items on the menu.

Oreo : When we talk about theimportance of being active on socialmedia and its positive effects, Oreo isthe best example of how being activeon Twitter not only captured usersattention but also improved theirsales. During the SuperBowl game,there was a powercut. Oreo Twitterhandle was quick to tweet “PowerOut? No problem. You can still dunkin the dark” while tweeting an imageof a sparingly lit up below the caption.This tweet caught attention of peopleall over instantly and managed to getnearly 15,000+ retweets and morethan 20,000 likes on Facebook. In ascenario where advertisers spendmillions to run an ad during suchimportant events like SuperBowlgame, when a brand responds in real-time on social media, it is way moreeffective as it can reach people onsmartphones and computers wayfaster. This kind of real-time responsegives brands more agility to respondin the moment more than traditionalmeans of advertising. Unfortunatelythis kind of social media campaignthough not totally unique is not aspopular as it should be. This may notresult in a huge amount of increasein sales but definitely makes thepeople perceive the brand as a moreinteresting and witty brand. So interms of brand equity this is way moreas effective, than just showing anotherSuper Bowl ad.”

Social Media as a Tool to Improve BrandLoyalty

Le Veque cited in Gonzalez (2010), 84 thatanyone who does not have a social media

presence in today’s world is doing a bigblunder considering the humongousnumber of users who are exposed to thevirtual web world. After presenting evidenceon various successful social mediacampaigns, there is no doubt about thebenefits associated with the same. Todayevery brand wants recognition, respect andtop of the mind share. Social media is the bestplatform to achieve these objectives. Anyform of interaction through social mediadone by a brand is bound to get peopleattracted towards the brand, whether it is anexisting customer or a prospective one.Through such interactions, it gives a face toa brand which gives assurance to a customerto connect with the same. Since vast numberof people are very active on social media,businesses can use offers, contests, discountsetc to lure its customers and earn their loyaltytowards their brand.

CONCLUSION

Social media is becoming a pivotal marketingtool that offers a great opportunity tocompanies to encourage customerengagement and understand customerneeds segments and profiles unlike mainstream media (Henning et. al., 2010). Socialmedia opens up a whole new world forbusinesses by providing an endlessopportunities of possible interactions withconsumers. It is important that brands utilisesocial media for outcomes which are beyondactual purchase, which includescommunicating product information,addressing customer service issues,engaging consumers with entertaining andfun content relevant to their brand, providingtimely and relevant information regarding itsoffers, discounts, events, and promoting newproduct launches. Further, brands must lookat social media as a medium to quickly reactto customer service issues and customerfeedback in a proactive manner. However, theimplications are that this is an uncontrolledenvironment that business do not have


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control over and therefore it requires a robustsocial media strategy that also manages thecomments posted by consumers whetherpositive or negative. An area for relatedresearch in future would be to consider howvarious kinds of digital environments(including social media and mobile) impacta wide variety of consumer outcomes,including psychological and economicconstructs.

References

Calder, B. J. Edward C. Malthouse, and Ute, S. (2009). AnExperimental Study of the Relationship between OnlineEngagement and Advertising Effectiveness, Journal ofInteractive Marketing, 23, 321-31.

Chen, Y., Scott Fay and Qi Wang (2011). The Role of Marketingin Social Media: How Online Consumer Reviews Evolve,Journal of Interactive Marketing, 25 (2), 85-94.

Curran, K., Graham S. and Temple, C. (2011). Advertising ofFacebook, International Journal of E-Business Development, 1 (1),26-33.

Di Pietro, L. and Elenora, P. (2012). An Empirical Investigationof Social Network Influence on Consumer PurchasingDecision: The Case of Facebook. Journal of Direct Data andDigital Marketing Practice, 14, 18-29.

Ferguson, R. (2008). Word of Mouth and Viral Marketing:Taking the Temperature of the Hottest Trends in Marketing.Journal of Consumer Marketing, 25, 178-182.

Gambetti, R. C. and Guendalina, G. (2010). The Concept ofEngagement: A Systematic Analysis of the Ongoing MarketingDebate, International Journal of Market Research, 52 (6), 801-826.

Heinonen, K. (2011). Consumer Activity in Social Media:Managerial Approaches to Consumers’ Social Media Behavior.Journal of Consumer Behavior, 10, 356-364.

Harris, L. and Charles D. (2011). Engaging Customers onFacebook: Challenges for e-Retailers, Journal of ConsumerBehavior, 10, 338-346.

Hennig-Thurau, Thorsten, Edward C. Malthouse, ChristianFriege, Sonja Gensler, Lara Lobschat, Arvind Rangaswamy,and Bernd Skiera (2010). The Impact of New Media onCustomer Relationships, Journal of Service Research, 13 (3), 311-30.

Mangold, Glynn W. and David J. F. (2009). Social Media: TheNew Hybrid Element of the Promotion Mix. Business Horizons,52, 357-365.

Mollen, A. and Hugh, W. (2010). Engagement, Telepresence,and Interactivity in Online Consumer Experience: ReconcilingScholastic and Managerial Perspectives, Journal of BusinessResearch, 63 (9/10), 919-25.

Palmatier, R.W., Dant, R.P., Greweal, D. and Evans, K.R. (2006).Factor Influencing the Effectiveness of RelationshipMarketing: A Meta-Analysis, Journal of Marketing, 70 (4), 136-153.

Shankar, V., Jeffery, I., Murli, M., Eileen, K. and Rose, R.(2011). Innovations in Shopper Marketing: Current Insightsand Future Research Issues, Journal of Retailing. 87S, S29-S42.

Bibliography

Andrew, J. R., George, R. M. and Velitchka, K. (2012). The Roleof Online Social Media in Brand-Consumer Engagement: AnExploratory Study, Direct/ Interactive Marketing ResearchSummit Proceedings.

Andrew, T. S. (2015). The Role of Digital and Social MediaMarketing in Consumer Behavior, Current Opinion inPsychology, 10, 17-21.

Webliography

Christine, A.O. (2012). Social Media as a Tool of Marketingand Creating Brand Awareness, Business Economics andTourism. https://www.semantischolar.org/paper/social-media-as-a-Tool-of-Marketing-and-Creating-%3A-odhiambo/acde1641344a100af080c882adO7d55c2cce33.

Holly, P. (2013). Social Media as a Marketing Tool: A LiteratureReview: Major Papers by Master of Science Students. Paper 2.http://digitalcommons.uri.edu/tmd_major_papers/2.

5 Impacts a Social Media Campaign can have on Your Brand:https://www.entrepreneur.com/article/277749

The Good, Bad and Ugly – Social Media’s Impact on YourBrand: http://www.targetmarketingmag.com/article/the-good-bad-ugly-social-media-s-impact-your-brand/all/.

The Impact Social Media Has on Your Brand and What to doabout It: http://www.nimble.com/blog/the-impact-social-media-has-on-your-brand-what-to-do-about-it/

Oreo’s Super Bowl Tweet: You Can Still Dunk In the Dark:https://www.huffpost.com/entry/oreos-super-bowl-tweet-dunk-dark_n_2615333


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SOCIAL MEDIA ADS AND STARTUPS ACCELERATION: A FACTORBASED APPROACH

Dhanashree Nagar*, Kshama Ganjiwale*

Digital marketing has become a powerful marketing tool these days. Interaction with customersthrough social media and personalized emails creates positive brand impression of a marketerand helps to generate revenue. A successful marketing strategy helps the startups to understandthe needs of visitors and converting them into the customers. Thus, it has become necessary forbusinesses to integrate social media into their digital marketing plan for customer engagementand better understanding of their perceptions (Coulter and Roggeveen, 2012). Present study hasbeen conducted on 100 startups of Indore using social media advertising to promote theirbusinesses. Extensive literature have been reviewed to understand the factors leading startupsto rely on social media ads for the purpose of brand endorsement and generation of business.Seven factors, associated with selection of digital and social media advertisements as marketingtool by startups have been identified as Customer Engagement, Lead Generation, Affection,Connectivity, Influence, Endorsement and Indulgence. Further, the study is recommended to becarried out with various dimensions of social media ads and its impact on startups in initial andlateral phases. Based on the findings, implications and further scope has been discussed.

Keywords: Social Media, Advertising, Startups.

INTRODUCTION

Consumers trust product reviews posted onsocial media sites (Funk, 2013; Menezes andDevi, 2016). Customer trust in organizationsand brand value can be developed throughsocial media advertisements (Safko, 2010).Marketers, by using social media touchgenerate more business with better customerconnectivity and interaction. Customerconveniently access and express what theyfeel about the products and servicespromoted by marketers. With suchplatforms, businesses are able to assure theircustomers that their requirements will befulfilled. On the other hand, it can be usedcreatively for advertising without makingcustomers feel like they are overwhelmed bymarketing campaigns. It reminds and keepsthe customers aware about the organization’sofferings (Wicks, 2015).


Digital marketing strategy empowers brandawareness by disseminating relevant ads. It

is also a way of improving customer brandexperience. Thus, social media helps theorganizations to acquire customers, buildtheir preferences, promote brands as well asincrease sales (Piñeiro-Otero and Martínez-Rolán, 2016). It also facilitates the start ups inengaging their audience by saving cost ascompared to traditional marketingtechniques. Controlling customer activitythrough digital media helps the start ups toachieve success (Kapoor, 2017). Social mediais ultimate way to communicate the tailoredmessage to target consumers with specificcontent. Social media platforms include socialnetworking sites (SNS), blogs and emailswhich provide many benefits for consumersas well as marketers (Mangold and Faulds,2009). It is a place where people express andshare their views, ideas and opinionsfrequently (Fuscaldo, 2017). Marketers usingsocial media are more likely to create healthyrelationship with target customers thantraditional media. Social media marketingincludes the channels that require internetwhich can be operated on mobile phones as


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well. It includes other media such as socialmedia marketing, display ads, search enginemarketing and other related forms ofadvertising. Organizations are using socialmedia as a platform for adverting, customerservice and also for the purpose ofrelationship building (Chaffey, 2006; Durmazand Efendioglu, 2016). E-mails, socialnetworking and Search Engine Optimization(SEOs) are used for the purpose of brandawareness.

Social media is among those powerful toolsthat are capable of transforming workmechanism of startups. It facilitates thestartups to send right message to targetaudience. Most of the social media sites allowto advertise free of cost or within budget.Users find the business over social media andthis is a direct line of contact for marketers(Jones, 2014). Shabbir (2015, 2016) observedthat small entrepreneurs are highlymotivated to use social media platform dueto its high and positive impact. It enables theusers to interact with each other by creatingand sharing contents. Businesses build theirsmall community over social media forintegrating with the users and other partnersfor a vital business growth (Gunther, et. al.,2009). It also helps to create long-termrelationship between customers andbusinesses.

Social media contributes to increased brandawareness and improves brand reputation.It provides the benefit to the marketers in theform of improved sales and customerinteraction (Goyal, 2016). With the emergenceof social media, marketers’ approachtowards communicating with customers haschanged drastically. Therefore, marketersmust learn to use social media consistentlywith their business plan (Mangold andFaulds, 2009). Nekatibeb (2017) observed thatsocial media provides long-term benefit interms of brand engagement. Customers areprovided an opportunity to communicateeffectively with other users. There is a great

effect of placing brand on social networkingsite. User would like to browse and view thereviews posted on social networking sitesregarding brands before they arrive at a finalpurchase decision (Priti, et. al., 2013). Thus,social networking sites play an important rolein influencing buying behavior.

A study by Halligan et. al. (2009) concludethat social media facilitates customerengagement at relatively low cost with higherlevel of efficiency than traditional media. Itallows the start ups to reach out thecustomers hanging around all over the globe.It is economical and simple tool increasingthe possibility to reach large number ofaudiences. Wuorio (2009) and Sharma andBharathi (2013) observed that social media iseffective tool for start-ups to reach newcustomers. It facilitates the marketers incustomer engagement through indulgingthem for posting comments, likes and tags.Social media enables firms especially start-ups, to engage consumers in a constant anddirect manner at relatively low cost andhigher level of efficiency than with moretraditional communication tools (Halligan, et.al., 2009). It also facilitates them to overcomethe challenges such as low marketingbudgets and lack of availability of expertisein initial phase (Cox, 2012).

Start-ups, can reach out to huge audience,drive sales and build trust and reputation.There exists a positive relationship betweenconsumers’ use of and engagement in groupapplications on social media sites whichinfluences the effectiveness of social mediaads. Consumers are influenced by otherpsycho-social characteristics such as income,age, gender and brand’s presence on socialnetwork etc. It is, platform to expand marketsegment and increase customer loyalty. Italso initiates higher customer engagementthrough recommendations, reviews andratings by customers (Amblee and Bui, 2011).

Developing connectivity with customers andunderstanding their brand tastes is possible

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through social media (Reyneke, et. al., 2011).Youngsters have more favorable attitudetowards social media ads as it is potentiallyrich platform for online advertisingcampaigns (Cox, 2010). Marketers need toinvest in social media as advertisingmechanism. There is a higher possibility ofgeneration of sales and traffic on websitealong with overall enhancement of marketingstrategy (Tuten, 2019). Overall,advertisements on social media formats withpositive attributes are welcomed by users.

OBJECTIVES

To identify the factors associated withselection of social mediaadvertisements by startups.

METHODOLOGY

The Study: The present study is exploratoryin nature and aimed at identifiying thefactors associated with selection of socialmedia advertisements by startups.

The Sample: The sample was based onprimary data and sampling frame is selectedstartups of Indore (M.P.). The convenientsampling is used to select the sample and thesample size is 100. The nature of startup suchas health and personal care, hospitalityservices, e-commerce, educational services,fashion and lifestyle etc. who aremeticulously relying on social media ads.

Tools for Data Collection: Primary data hasbeen collected through self structuredquestionnaire by using 5 point Likert scalefrom 5 as strongly agree to 1 as stronglydisagree.

Tools for Data Analysis: Factor analysis hasbeen used for the analysis of the data.


The study consists of 100 startups in variouscategories such as health and personal care,hospitality services, e-commerce, educationalservices, fashion and lifestyle etc. KMO and

Bartlett’s test of sphericity values werechecked and found satisfactory. The valueof Cronbach’s alpha was found to be 0.884.(Table 3) This indicates that the instrumentis acceptable. Similarly, KMO measure ofsample adequacy was found to be 0.811 andBartlett’s test of Sphericity was also found tobe significant. (Table 4) Exploratory Factoranalysis was performed using a PrincipalComponent Analysis (PCA) and the Varimaxwith Kaiser Normalization rotation method.Total 66.19 percent of variances wereexplained by seven factors. (Table 6)

Factor 1 is named as Customer Engagementwith initial eigen value as 19.366. The groupconsists of the variables Easy to obtainfeedback with highest factor loading of (.800)followed by easy product recommendations(.739), word of mouth (.716) and a platformto collaborate with customer (.441) Start upsconsider that ads through social media isreliable source of connecting with customers.The results of factor group 1 are consistentwith the study by Coulter and Roggeveen(2012). Social media is effective medium forcustomer engagement.

Factor 2 is named as Lead Generationconsisting of two variables. Revenuegeneration has a highest factor loading of(8.11) in a group followed by findings newcustomers through social media ads (.708).Our study is supported by the findings ofPineiro and Martinez (2016) and (Jones,2014) in connection with obtaining newcustomers as well as brand promotion.

Factor 3 is named as Affection consisting ofthree variables leading to generate theattachment among the customers towardsbrands. The variables were customerretention (.759), creation of brand awareness(.703) and trust in brand (.492) through socialmedia ads.

Factor 4 is named as Connectivity consistingof four variables. The variable networkdevelopment has highest factor loading of


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(.814) followed by useful for customerengagement and acquisition (.306).

Factor 5 is named as Influence consisting ofsingle variable that has an influence onbuying decision through social media ads(.815).

Factor 6 is Endorsement consisting offacilitation of brand promotion throughsocial media ads (.799), complimentary totraditional marketing strategy (.521) andnurturing customer relationship (.518)Startups agreed upon the fact that promotionthrough social media supports them topromote their brand and build relationshipwith customers.

Factor 7 is Indulgence supporting tounderstanding customer needs (.879) andgeneration of business (.531) through socialmedia ads by startups.

CONCLUSION AND SUGGESTIONS

The present study has been carried out toanalyze the influence of social mediaadvertisements on startups. The study hasidentified seven factors namely CustomerConnectivity, Sales Orientation, BrandAttachment, Customer Association,Influence, Promotion and Indulgence. Thesefactors include the preferences of startups togo for social media ads such as betterunderstanding of customer needs,influencing buying decision, development ofnetwork, customer engagement, brandpromotion, revenue generation, finding newcustomers etc. The study concludes thatthere is no significant influence of nature ofbusiness activity and the time ofestablishment of startups on factorsassociated with selection of social mediaadvertising.

Traditional marketing always gives impactfulresults but some time digitalization havedifferent impact (Durmay, et. al., 2016). Thestartups need to identify the suitability of aspecific social media site according to their

business to optimize its benefits (Ali, et.al.,2016). They need to identify which ways ofconnecting with customers is most effectivefor their businesses. Further study can beconducted in business categories and timeof establishment to measure theeffectiveness of social media. Businesses mayalso focus on the contents of sites to increasethe retention value. Innovations andcreativity on social media would helpstartups to increase sales and develop trustand customer engagement through brandawareness.

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SPIRITUAL GOVERNANCE AND NATION WELL BEING

Anu Verma Puri*

India is a land comprising of various cultures, languages, multiple political parties at nationaland regional level, dresses, food habits, geographical, customs and beliefs, regions, religions etc,still it represents “Unity in Diversity”. The growth and development of a nation can be judgedby the condition of the over-all well being of the people of the nation and their standard of living.Their condition, trust and satisfaction with the government truly reflect the face of the government.Man is a social animal and depends upon fellow human beings, community, material things andadministration to make his life worth living. As such, human nature is complex with spiritual,social and psychological connectivity with the world he lives in. His overall well being gatherssupport from the world around him directly or indirectly. Any country with better or improvedgovernance can lead to better quality life of its citizens and make citizen-administration relationcordial. In this regards, spiritual leadership lays the foundation of good governance. The state ofover-all well being of the citizens in particular and nation in general reflects the state of governance.The present paper in an attempt to enlist and highlight.

Keywords: Spiritual Leadership, Governance, Ethical Values, Sustainable, Global, WellBeing.

INTORUDCTION

The modern day society reflects the truepicture of social and mental turbulence. Toachieve the administrative, financial andpolitical gains, problems like corruption,favoritism, lack of sincerity, dedication andtruthfulness among officials and politicalleaders has been crossing its limit and isleading to distress and disappointed amongthe masses. This necessitates the socialand spiritual renaissance throughintervention in the attitude and behavior ofmasses. Irrespective of being a democraticnation, our country still strives for bringingthe fruits of development to reach theunderprivileged sections of our society.Many scams exposed were influenced bypolitical pressures and self interests ofbureaucrats. This depicts the ugly face ofadministration in context to the Indianpolitical system, thus making it differentfrom the country’s spiritual character.

Spiritual Governance: Introduction and theConcept

Spiritual Governance is a combination of twodifferent words “Spirtual” meaning people’sthoughts and beliefs rather than to theirbodies and physical surroundings and“Governance” which means government, actor manner of governing, rule oradministration. Governance relates toprocess in which the administrators and thepublic both are actively involved in theframing of the policies for the welfare of thepeople. The concept of Spiritual Governanceis not a new concept but with thecircumstances is gaining importance and isthe need of the hour. Its origin dates back tothe times of Mahabharata. BhishmaPitamaha, had mastered the art ofgovernance and had dedicated himself to thethrone of his kingdom, Hastinapur.According to this famous Indian Epic,

* Assistant Professor, Chitkara College of Education (CCE), Chitkara University, Rajpura (Punjab)


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“the foundation for good governance isrighteousness in public affairs. The king, his son-including relatives-his ministers, and the stateemployees who have taken the oath of their officesto uphold Dharma and to take care of the publicneeds, must not act unjustly or unethically, becauseif they do so, they will not only destroy the moralbasis of governance but also turn the state into ahell (Mahabharata, Shanti Parva).

Verse 58, Chapter 59, Kama Parva ofMahabharata explains the righteous path ofsustainability through Dharma as:

“ Dharanat dharma mityahu dharmo dharayateprajaha,

Yat syad dharanasamyuktam sa dharma itinischayaha”

This means, “Dharma sustains the society,Dharma maintains the social order, Dharmaensures well-being and progress of humanity, andDharma is surely that which fulfils theseobjectives.”

As mentioned in “Kautilya’s Arthshastra”during the reign of Chandragupta Mauryain 4th Century B.C, Kautilya positioned theState as an institutional necessity for humanadvancement stated as:

“ Praja sukhe sukham rajyaha prajanamchahitehitam,

Natma priyyam hitam rajanaha prajanam chahitam priyam”

This means that the happiness of his publicrests with the king’s happiness, in theirwelfare his welfare. He shall not consider asgood only that which pleases him but treatas beneficial to him whatever pleases hispublic.

Relation between Governance and Nation

Governance is defined by a number ofscholars in different ways. In general, it refersto an act of governing the country with thehelp of defined set of rules. For proper

growth and development, taking intoconsideration the social aspect of humanbeings, the life of an individual is very muchaffected by his surroundings-family, socialmedia, materialistic things, money, friends,society, culture, religion, education, life style,profession, etc. All such factors aresignificantly crucial in shaping the behaviorof people and prepare them for future.Among many such factors “spiritual”character of a person holds great importanceas his beliefs, behavioral modification,conscious mind and his values are very muchaffected directly or indirectly. This is reflectedin his behavior and actions. It makes him abetter individual. Moreover, as many livesrevolve around an individual, their lives tooare under the influence of that person. This“spiritual” character connects him to thesocial world of which he forms a part. Thus,the “spiritual behavior” forms an integratedpart of life of an individual. The proverb“First we make our habits, then our habitsmake us” relates to the spiritual behavior ofa human being and is connected to thesociety for the noble cause. If a personpossesses the spiritual values, he isconnected to the supreme power and is arich person morally. This helps to modify hisbehavior positively. As an individual and asa professional, he can deal with the worldaround him in a balanced way. He iscontented in himself and as such this helpshim to exercise his role selflessly.

Spirituality has a broader vision and plays apositive impact on the health and over all wellbeing of an individual. If a person isspiritually strong, his behavior will enhancenot only his physical but mental health aswell and make him a string and healthyindividual. He will be able to maintainhealthy social contacts with other people andcreate healthy surroundings. The more heis capable of maintaining healthy relationswith his family, people and society, the moremeaningful becomes his life. It provides abalance to his thoughts and behavior.

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Spirituality helps a person to keep a balancebetween belief, reality and practice. Anindividual gets a strong sense to differentiatebetween good and bad and becomesdevelops the problem solving and decisionmaking capacity.

If a person is spiritually strong, he is capableof maintaining social relations. He ispsychologically strong enough andpossesses good mental health. Spiritualityleads him to the right direction and helpshim in integrating into society. A person isable to handle the worldly issues in a betterway and thus perform his role in an efficientmanner. But if a person becomessuperstitious and follows wrong beliefs, hecan be misled and his thoughts and behaviorcan be adulterated. So, his spiritual behaviorcan be affected by the religious beliefs andvalues he believes in which leads to a healthylifestyle. If a person believes in a good set ofreligious values leading to constructiveaspect of the society, it can affect otherperson/group of persons connected with himin a positive way. But if a person followswrong/forced/superstitious set of beliefs andvalues, he can mislead a large group of thepeople. The cases of many popular religiousso called “Gurus” are very common who areresponsible for misguiding the large massesand reflect their personality as two sides ofthe same coin.

Spirituality and religion complement eachother. When the value of spirituality fadesaway, it reduces the religious values and assuch the societal values also shrink. Thepoliticians, Gurus, saints, pundits etc areusing religion and spirituality as means toachieve their selfish ends. They first makean attempt to win the hearts of their followersand then start using them as a source toachieve their self interests. The modern anddiffused Indian culture has changed theconcept of spirituality.

The religious values promote the humanvalues and reflect the spiritual character in a

society. Spirituality polishes the moral innervalues of an individual. But in the presentday society, the Indian culture is influencedby the western culture to a greater extent.This creates an environment that weakensthe social and the cultural values and makesa person insensitive to the societal needs.This not only deteriorates the quality of publicservices but also widens the gap betweengovernment and the citizens. As such, thecitizens well being is adversely affectedwhich is reflected in the nations well being.

Presently, the government is facing manychallenges while dealing with people of thenation and fails to meet their aspirations. Agovernment exhibiting good governance isthe serious challenge. As a result, peoplehave lost faith in its credibility to protect themand secure their future. This has widenedthe horizons between the citizen andadministration. The increased gap betweenthe government and the citizen’s hasemerged mainly due to corrupt practicesadopted by the government agencies andpublic servants. The high rankadministrators and officials misuse theirpowers and position to oblige the politicalleaders and meet their selfish ends. Even ifsome public servants are sincere anddevoted to their work, they are demoralizedand forced to follow wrong practicesotherwise it makes it very challenging andimpossible for them to grow professionallyand secure their services to run and protecttheir families. This is further a threat togovernment and governance and citizen-administration relationship.

Taking into consideration, the welfare of thecitizens, the Hon’ble Prime Minister, Mr.Narendra Modi in his speech explains hisvision on governance and emphasizes on therole of government and not the size ofgovernment. Further, he said:

“..we require competent, efficient and non-corrupt arms of government. We ingovernment, must constantly ask the


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question: How much money am I spending,and what outcomes am I getting in return?For this, government agencies have to beimproved to become competent. Thisrequires rewriting some laws. Laws are theDNA of government. They must evolve withtime.”2

Many steps have been taken by the presentgovernment for providing qualitativeservices to its citizens and nations well being.Much more needs to be done to track thedevelopment goals and achieve the goal ofwelfare of the common man.

As a part of great vision of Pandit Nehru onadministration-citizen relation in his work“Discovery of India”, 1946, he pointed out thatthe governmental structures are framed bythe British and needs to be shaped with thechanging time.

The concept of Governance or goodgovernance or spiritual governance is notnew but with the emerging trends in theworking of administration, it is changingwith the prevailing circumstances at differentperiod of time and becoming the emergingneeds of the present times. Governance isdefined by different school of thought indifferent ways. The process of governancenot only includes a large number of activitiesbut also the actors governing and those tobe governed. The affairs responsible for thedevelopment (economic and social as well)of the country are looked upon by thepolitical leaders.

Absence of spirituality in administrators islike a cancer that spreads its roots deep inthe society and worsens the condition ofnation’s well being and finally the wholeworld is badly affected. It gives rise to manyside effects such as misuse of powers andposition by the higher authorities, bribe,corruption, favoritism, nepotism, red tapism,political influence, misuse of administrativeand financial resources etc. It spreads not onlyin one field but slowly captures other fields/departments from lower to higher levels.

Environment acts as a great force to influencethe life of an individual, so it becomes vitalto create a healthy administrativeenvironment for the betterment of thecitizen’s. The administrators can be a guidingforce to create a healthy environment in thepublic organizations by adhering to theprofessional ethics. This can help tominimize the corrupt conduct of theadministrators and promote healthypractices while dealing with public. Hence,administrative environment can bemaintained by the administrators if they arecapable enough in maintaining a balancebetween human relations and emotionalbehavior while dealing with them. He shouldbe able to deal with public affairs in anefficient manner as the responsibility toimplement the government policies andprovide public services rests with the publicservants.

Governance is “the process of decision-making and the process by which thedecisions are implemented”. For smoothfunctioning of the corporate there is aninnate need for spirituality. Governance is“the process of decision-making and theprocess by which the decisions areimplemented”. For smooth functioning ofthe corporate there is an innate need forspirituality.

Governance and Nation Well-being

Due to the traditional working ofadministration, the administrative agencies(governmental and non-governmental) havefailed to discharge their duties effectively andefficiently. This has led to increase incorruption and red-tapism followed byunhealthy practices by the public officials.Corruption has not only invadedadministrative agencies but has alsoadversely affected the society on the whole.The people have shown discontentmentwith the delivery of public services. They


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have lost faith in the administrative agencies.To achieve the developmental goals of thegovernment, the machinery of governancecomprising of civil servants and other officialsat different hierarchy levels should beeffective and well coordinated. This demandsserious, sincere and urgent efforts inrectifying the image of public servants/officials at different levels of hierarchy in theadministrative set-up.

Our country is rich in many resources(human and man-made). But the drawbackis that they are not used judiciously. As such,the people who are already financially wellare earning enough money and arebecoming richer while on the other hand, thepoor are becoming poorer. As such, the gapis further increasing between the rich andpoor class. Sri Krishnamachari, one of theoriginal members of the PlanningCommission established on 15th March, 1950believed in democratic planning withpeople’s participation as essentialcomponent of its success. To enrich life ofpeople of the nation, there arises the needto modify the changes in the attitude andbehavior of the administrators.” He believedthat the social as well as economic objectivescan be achieved through sincere involvementof public officials and citizens.

Further, he pointed out that all questionsshould be looked in terms of their humanvalues as he regarded efficiency andintegrity as supreme qualities. In the presentera, various initiatives have been taken andseveral reforms have been introduced fromtime to time in the existing policies andprogrammes with the aim to reducecorruption and attain the goal of sustainabledevelopment.

Government in any country plays the leadrole in the nation building and nation wellbeing. If the government is successful inperforming its role to achieve thedevelopment goals and works for thewelfare of the people, this contributes to

overall well being of the nation. But, if anygovernment fails to keep itself aligned withthe needs of the citizens and lackcompetency to give them a good quality life,then it directly affects the nation’s health ina broader sense i.e financially,administratively, politically, spiritually,socially, geographically, culturally andpsychologically. The well being of any nationcan be improved by mutual trust, sense ofsocial responsibility, moral values, spiritualbehavioral modification and accountability.

To facilitate better standards of living of itscitizens in any country, Good Governance isthe key to corruption-free working ofgovernment. Ethical values or ethicaladministrative behavior forms the essentialingredient to maintain the sustainable andtrustworthy relations between thegovernment and the citizen’s. It exhibitsseveral key features such as accountability,transparency, responsiveness, active publicparticipation, ethics in administration,effective time bound delivery of publicservices etc. Thus, the concept of GoodGovernance not only involves thegovernment but also the government officialsand upon them lays the responsibility to runthe administration. If these administrators arephysically, technically, spiritually andmentally strong, they can lead to progressivedevelopment of the community and thenation on the whole.

With increased literacy and the advancementof science and technology, the people arebecoming aware of their rights and don’thesitate to demand from the administration.As mentioned by Saha (2014), there is agrowing awareness and demand indemocratic polity for infusion of the spirit ofgood and effective governance whichrequires introduction of openness,transparency and the culture of humanrights in the sphere of government activity.We all can learn from the instructive lessonfrom "The Great Learning of the GreatConfucious".


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At a cultural conference organized by thestudents of Scottish Church College, Calcutta(January 3, 1939), Pandit Nehru whileaddressing them stated:

“Ordinarily, the religious approach in the past hasbeen the way to individual development. It tries toimprove the individual hoping that improvementof the individual will affect the social group.Nevertheless, the modern method lays stress onimproving the environment so that a person livingin a particular environment may grow to his fullestcapacity. But these methods have not been,however, contemporary. Perhaps stress laid in theimprovement of a particular environment is moreimportant today because if the environment is bad,you cannot make much progress. We have to thinkin terms of social culture and what kind ofenvironment it develops. What is the good, forinstance, of your trying to cultivate unselfishnessand produces bad influence on life?”

After India got freedom, the All-India andCentral Services inherited the same colonialpattern of administrative set-up. With time,the rise in population led to the increasedneeds of the people resulting in expansionof the administrative system. This further ledto expansion of bureaucracy. Pandit Nehrucriticized the expansion and said; The growthof socialism is the growth of bureaucracy. Hebelieved that socialism is a political ideologythat requires democracy, a politicalorganization to propagate it and articulate avalue system within a society to produce abehavior pattern in its favour. In the SecondAnnual General Body Meeting of IndianInstitute of Public Administration (April 7,1956), Nehru said:

“We have the objective of socialism or the socialistpattern. Now, every machine that you make ismeant to turn out something you want. If we wantsocialism, then the administrative machinery thatwe have must gradually turn out socialism. If it isturning out something else, then, it does not fit inwith the objective we have and there is a constantconflict between these two.”

In the Third Annual General Body Meetingof Indian Institute of Public Administration(April 6, 1957), Nehru emphasized onvisualizing overlapping role of the publicofficials, elected representatives andpoliticians as:

“It becomes all the more important that theadministrator has his hands on the problemof the people all the time, and the people feelthat this man is one of them, that he isreflecting their wishes, and will always reflecttheir wishes.”

The role of administrator was beingconceived in a broader sense involvingcompetition with the role of politician. Thisled to the change in the perception of civilservants. There has been a change in theattitude and behavior of the public servants.As such, the administration has become rigidwith the rules and lengthy procedures dueto complex and out-dated nature. Thisfurther resulted in delays and increase incorruption.

In India, the democratic principle allows thecitizens to exercise their powers indirectly byvoting. As per the famous quote of AbrahamLincoln, in a democratic set-up,“Government is of the people, for the people,by the people.” But the present scenarioreflects the different face of the government.The phrase “of the people” and “by thepeople” may hold true but the phrase “forthe people” goes missing.

Political interference at different stages in thejourney from policy making to policyimplementation has led to the emergence ofa mixed trait influencing the working of theadministration. The administration hasbecome insensitive to the needs and interestsof public. The changing nature ofenvironment results in focusing more onquantity rather than quality of services. Insuch an environment, a common man findshimself helpless to gather support from


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administration and experiences a bitter tastewhile dealing with the public officials. Withthe population explosion, the nature of thegovernment organizations is becoming moreand more complex and the functions areincreasing manifold. This further creates aproblem for the administrators to serve thelarge masses and understand the nature andworking of organizational structures as thecivil servants are transferred after a certainperiod of time from one department toanother. Moreover, now the public isbecoming smart to demand the qualitativepublic services without hesitation as theypay for it directly or indirectly.

To make the citizen-administration smooth,the public officials should be efficient andsocially responsible and work within theconstitutional framework in adherence to thedemocratic values in society. Lack of fair playand ethical standards in administration is theoutcome of many factors such as increasedpolitical interference, weakening of nationalleadership, increased sense of bossingattitude, favoritism, habit to work in thecomfort zone etc.

As pointed by the then Vice-President ofIndia Dr S. Radhakrishnan,

“No government can be indifferent to the complaintsmade by ordinary people who suffer frommaladministration. No government can turn ablind eye to them, because slowly the reputation ofthe government itself will sink and social upheavelswill be brought about.” Further he added, “Aclean administration-a good government –must beregarded as essential for any civilized state.”

Thus, an administration with spiritualbackground and being sensitive towards theneeds of the public can contribute to anorganized and healthy society. This canfurther support the development of thenation.

CONCLUSION

Overall well-being of a nation is multi-dimensional in nature and covers a broadvision. It refers to the cultural, administrative,social, political, financial, psychological,geographical, mental and intellectual aspectsthat strengthen a nation. The well being of anation is reflected in the quality of life of itscitizens. The surroundings of a person createa direct impact on people and also affect thesociety on the whole. Which in turn, reflectsthe working standards and the performancelevel of its government. With time, thegovernment is expanding both in length andbreadth. The nature of the government isbecoming complex day by day and thefunctions are multiplying. As a result, therehas been a decline in the quality of theadministrative services. This may result dueto many factors contributing to reduction inthe quality of its services such as populationexplosion, increase in literacy rate, reducedwork force, poor salaries, increased taxes atdifferent levels between providers and usersin comparison to reduced services bothqualitatively and quantitatively, red tapism,nepotism, duplication of work, imbalancebetween employees to be recruited andthose retiring, lust for materialistic things, theeasy way using power and position, egoproblems, intolerance, unemployment, biasnetwork of officials, corruption, lack ofmotivation and social justice, decline of moralvalues in the society, non-uniformdistribution of resources of the nation(manpower and financial resources), officialsconfined to work in their comfort zone,resistant to adopt the new ways andtechnology to move with modern times,political influence and interference etc. Assuch, the citizen’s are not satisfied with theworking and performance of governmentand public servants. Their interest in givingtheir best in terms of participation to societyalso suffers in numerable ways. This furtherloses their interest in their government and


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in turn in their nation. They prefer to go toother countries abroad for education, joband settlement.

The above stated factors are directly orindirectly inter-related to each other. Therapid transformation in the administrativesphere is also deteriorating the societalvalues. If a common man has problems, hehas the right to ask for help from theadministration. But if the entire governmentset-up (including all organs- administrative,legislative and judiciary) is helpless, thenwho can be approached to solve the societalproblems. In this regards, spirituality playsa strong role in modifying human behaviorand improve the societal values and thuspromote humanity. Spiritual activitiesincrease individual participation in acommunity and can act as sources of socialsupport which may inculcate and enhancea sense of belonging and feeling of security.The wellbeing of an individual can beimproved with greater socialization andmake the life more meaningful. Spiritualpower strengthens the mind and body to

face the hardships strongly and thusovercomes them. Spirituality leads toattaining health benefits directly or indirectlyand aims to bind various groups withdifferent cultures, religions, life style andlanguages of people. The civil servantsshould be trained in such a manner whereinbiases such as regional, cultural, religious etcare reduced to a large extent. They shouldperform in the interest of the country as awhole.

Bibliography

Dwivedi, O.P. and Mishra, D.S. (2014). A Good GovernanceModel for India: Search from Within, Governance andAdministration; Unhealthy Trends, U.C Agarwal (Eds.), IndianInstitute of Public Administration, Golden Jubilee.

Malhotra, D.D. (2014). Jawaharlal Nehru: His Vision on Scienceand Technology and Public Administration, P.L. Sanjeev Reddy,R.K. Tiwari (Eds.), Issues and Themes in IndianAdministration, Indian Institute of Public Administration,New Delhi.

Radhakrishna, S. (2004). Administration and the People, PublicAdministration: Vision & Reality, Golden Jubilee Publication(Edited by U.C Agarwal), IIPA, New Delhi, 66.

Saha, T.K. (2014). Reviewing the Working of the IndianConstitution, Issues and Themes in Indian Administration,1, IIPA, (Edited by P.L Sanjeev Reddy & R.K Tiwari), 144.


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STUDENT SUPPORT AND PROGRESSION PRACTICES: A REVIEW

Anukool Manish Hyde*, Deepti Bajpai Kukrety**

Young generation plays pivotal role in nation building. If students are groomed properly byInstitution they become catalyst in the progress of the nation. For this colleges and Instituteshave to take active part in giving full support to the students so they become strong pillars in theprogress of the country. Students have to be given support through counseling, extra murallectures, placement process etc. It is observed that Institutes give support to students in manyways so that they become ambassadors after completing their course. This paper is an attemptto explore practices adopted in various Management Institutes and colleges towards studentsupport and progression.

Keywords: Human Capital, Counseling, Career, Policies and Soft Skill Development.

INTRODUCTION

Organization survives and grows because ofeffective practices, policies and human capitalin the organization. An organization can goahead if it changes itself as per need ofcustomers. Similarly, management institutescan excel if they keep on upgrading andupdating their practices by looking at theneed of society at large. Good practices canattract bright prospective students and helpthe institutes to get students in the futurealong with creating a positive image throughmouth publicity.

Management’s vision, mission and qualitypolicy determine the path of success fororganisation. Every management instituteshould make necessary changes in practicesas per changing times to be leaders in theirdomain. Many writers agree that humanemotions and qualities are developedthrough participation in social contexts(Mole, et. al., 1996; Argyris and Donald, 1981;Polanyi, 1958; Vygotsky, 1985; Bruner, 1990;Lave and Wenger, 1991; Nonaka, 1991). Thismakes it possible for individuals to interactas feeling human beings and effectivemembers of the various communities towhich they belong. People who are effectiveparticipants can demonstrate various human

qualities through their words and deeds.They interact with others about theirthinking and feelings. Through participationin the society or societies to which theybelong, individuals learn more about humanbehavior and develop an understanding oftheir roles and functions. People can becomemore effective participants in the social milieuthrough these interpretations given by thesesocial interactions.

The workplace, as a social setting is onelocation in which people may learn abouttheir behavior and emotions and it isbecoming increasingly clear that Aristotle’sobservations are taking on a greatersignificance in organizational life. This is inpart due to the idea that effective learning,leadership and human relationships play avital part in helping organizations to achievecompetitive advantage (Hamel, andPrahalad, 1991). Further, the rules of workand workplace are changing. People arebeing judged by a new yardstick: not just byhow smart they are, or by the training andexpertise, but also by how well they handlethemselves and each other. This yardstick isincreasingly applied in choosing who will behired and who will not, who will be allowedto leave and who will be retained, who

* Professor and HOD, HR and General Management, Prestige Institute of Management and Research, Indore.** Assistant Professor, HR and General Management, Prestige Institute of Management and Research, Indore.


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passed over and who promoted” (Hamel,and Prahalad, 1991).

Emotion plays a key role in organizationalsuccess and evidences suggest thatintelligence alone will not elucidate oursuccess at work or life. Rosete and Ciarrochi(2005) exhibited that “executives higher onunderstanding their own feelings and thatof their subordinates are more likely toachieve business outcomes and beconsidered as effective leaders by theiremployees and direct manager”.


Easterby-Smith et al. (2000) found that “theinnovative learning is obviously complex,involving a mix of rational, intuitive,emotional, and social processes”. Fenwick(2003) could able to do the work as Easterby-Smith et al.’s findings: “Innovation:examining workplace learning in newenterprises” and she found that “emotionplays an important role in employees’readiness to create and innovate”. FenwickT. (2003) concluded: “a central motivator wasthe link of their personal project to aworthwhile social purpose, whichembedded both identity and desire andwhich in turn fueled innovative learning”.Park (2005) identified “the link between anorganization’s emotional environment andits performance. Park hypothesized that“how far people experience an organizationas enabling them to feel capable, listened to,accepted, safe and included affect theircreativity and innovation. The researchfound that there was a correlation betweenthe extent to which staff experienced the fivedimensions described above, and the extentto which they were able to be curious,resilient, creative, strategic andinterdependent as well as manifesting otherqualities associated with “learning power”.Park concluded that organizations are morelikely to enhance productivity and creativityby focusing on the quality of their emotional

environment than they are by setting targetstowards achieving those outcomes.

Enlisted below are various ways in whichPrestige Institute of Management andResearch, Indore supports studentsprogression at various stages.

1. Scholarships and Free-ships Provided byGovernment and Institution

A scholarship is financial support awardedto a student, based on academic achievementor other criteria that may include financialneed, for the purpose of schooling.Scholarships are of many types – the twomost common being merit-based and need-based. The patron or department granting/funding the scholarship decides the criteriafor beneficiary selection, and the patronspecifically defines how the money is to beutilised. The money/funds are used to paycosts of tuition, room, books board andadditional expenses directly tied to astudent’s educational cost through theinstitution/university.

Scholarships are granted on certain factors,including - but not limited to, academicachievement, departmental andemployment experience, communitycontribution, areas of study, and financialrequirements.

Certain eligibility criteria is to be met bystudents who are applying for scholarships.Many scholarship foundations do emphasison leadership, inter-personal relations apartfrom, scholastic achievement alone. There isan entrance exam for scholarship so studentsneed to sharpen their skills. Important datesare to remembered by the scholarship seeker.Freeships are granted on the basis of “meritand financial need of student through thecomplete course of their study as long as theykeep up a good academic standard is given.A good initiative on part of government hasbeen taken to allow meritorious studentswho are looking for higher education but

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cannot do so because of the rising cost ofeducation.

Free-ships can be made to support studentsacross the University, or focused towards aparticular school or indeed course.

College/Institute offers more than 100Scholarships and Free-ships to students,made possible by donations fromIndividuals, Companies and Trusts andFoundations, as well as through theChancellors Scholarships and Free-ships.Institutes also offers scholarships to studentswho are not getting scholarships from anyorganization/government. When studentapplies for scholarship, documents are sentto Management/Society and documents areverified there. Scholarship is sanctioned bythe Society/Management when documentsare verified.

Madhya Pradesh Government providesscholarship to SC,ST and OBC students.Criteria of scholarship is that student’sparents total income should not be morethan Rs 3 lakh and 6 lakh per annum for OBCand SC/ST respectively. Institute receives acircular from government and it is circulatedamong students and students then fill theprescribed form along-with requireddocuments. Institute then submits alldocuments to the Collectorate office anddocuments are scrutinized and scholarshipis sanctioned as per criteria. Scholarship forSC, ST and OBC is Rs. 60000/-, Rs.35000/-respectively.

Scholarships from Management

2. Capability Enhancement andDevelopment Scheme

In capability enhancement and developmentschemes the institute offers assistance forcompetitive examinations, career counseling,Mentor-Mantee program, personalcounseling, career guidance call andplacement assistance, soft skill development

programs and activities, remedial coaching,language lab, bridge courses, yoga andmeditation for holistic development,vocational education and training towardssupport services and better progression ofstudents.

Assistance for Competitive Examinations:Competitive exams devise the basis fordifferent civil services. Institute works ascatalyst for students who decide to pursuehigher studies or are interested in joiningcivil service. Career Guidance Cell is existingin the institute with the prime objective ofproviding guidance to the Students aspiringfor civil services career or higher studies. Thiscell supports in creating awareness andinterest among students about civil servicesand provides guidance related tocompetitive exams. Career counsellorsprovide guidance to students and assistthem with proper direction during theirjourney to thrive in the competitive exams.

There is a cell in law department also wherestudents can avail the benefit of guidance forcompetitive examination. Students whoneed guidance for competitive examinationalso get guidance from faculty Incharge ofthe cell.

Career Counselling: Continuous assistanceand guidance to choose career path isprovided to students pursuing MBAprogram. Students need directives as regardto choosing their stream, excelling in theMBA program, and refine their effortstowards securing a shining future. Careercounsellors from Career Guidance Cell areaccessible to students to further discuss andadvise on a one-on-one basis regarding theircareer related queries. Placement Cellprovides guidance to students in choosingtheir career. In addition to Psychometric Testconducted for MBA Semester I students,expert Psychologists were also invited tocounsel them on picking of career on one-on-one basis.


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In pertinent areas provision is made forbridge and value added courses. College/Institution has a proper structure of counselsystem which guides students on a regularbasis. Institutions who are interested instudents’ progression to higher studies and/or to employment is dealt with under this.Every college has to identify the reasons fornot attaining plan and should implementmeasures which can remove hurdles.Excellent practices which support thestudents, assist most favourable progression.Institute assists upward movement ofstudents from one level of education to thenext higher level or for gainful employment.

A notice is circulated to students regardingcareer and personal counseling. Studentsregister themselves for it and separate slotsare booked for each student and counselordoes counseling for registered students.Students are not charged for counseling.

Institute always look towards continualimprovement of “soft skills and personalitydevelopment” of the students which is anessential requirement of business today. Itinvolves grooming the students on variousaspects such as business etiquettes,communication skills, presentation skills,team work, networking, time management,motivation, confidence building, leadershipskills, creative thinking and decision makingetc. Eminent personalities from academicsand industries are called to deliver lecture onrelevant topics needed to succeed in job, andmeet industry’s expectations. The StudentTraining Program which is an initiative of theinstitute aims at providing multi-facetedskills and leadership qualities to the buddingmanagers. Thus, helping them in theiroverall development and securing suitableplacement. Institute has initiated this moduleto develop the right approach, attitude andskills among the students with an intentionthat they can meet the industryrequirements. Students are encouraged toparticipate in various activities covering

group discussion, personal interview,presentations etc. organized at the institutelevel.

Institute has trained faculty in the area of softskills. Notice is circulated among studentswho lack in soft skills. Training need analysis(TNA) is done and individual attention is paidon each student so his/her soft skills aredeveloped. Every year many students arebenefitted with this.

Remedial and Bridge Classes: Facultymembers encourage and support studentsover and above regular allocated lectures.Additional practice sessions are addressedby faculty members to enhance the efficiencyof the students who have problems inconcept clarity, subject related queries,challenging topics. It also help students whohave been unsuccessful in the examination.

Students walk-in faculty members in thefaculty room / cabin for their queriesinformally.

For weak students remedial classes arearranged (whenever required), to improvetheir performance. Special slot as a make-uplecture is allotted in the timetable of eachclass.

Students are expected to involve themselvesin seminars, intercollegiate competitions,symposia, and workshops. Students areencouraged to enroll in various professionalsocieties and participate in the eventsorganized by them.

To know the concept, minor projects aregiven to the students for some of the courses.These projects are examined based on therubrics defined by the faculty member. Theobjectives behind this activity is to improvelevel of understanding and to give hands onexperience in simulation, analysis anddecision making etc.

Self-learning is promoted amongst studentswherever required. Home assignments,


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quizzes, seminars are the part of self-learningactivity which motivates students enhancingtheir capabilities. Learning managementsystem is used for all courses which supportsstudents in studying. Series of NPTEL Videolectures and notes in pdf are available for theready reference.

In final year, Project is an important part oflearning as it involves most of the ProgramObjectives. The quality of project is examinedat different stages in project life cycle byappropriate processes such as selection oftopic, development as per planning, results& conclusions and finally evaluation andfeedback by examiners.

Students joining MBA course have diversebackground in terms of streams. Remedialcoaching is arranged for FinancialAccounting, Quantitative Techniques,Financial management etc. Faculty in-chargecirculates notice to all students who arestudying above mentioned subjects. Ifstudents are not comfortable in any subjectmentioned above then he/she will registerfor that subject. Classes are arranged andinput is given to students and they improvein concerned subject.

Language Lab: “A language laboratory is adedicated space for foreign languagelearning where students access audio oraudio-visual materials. They allow a teacherto listen to and manage student audio, whichis delivered to individual students throughheadsets or in isolated ‘sound booths”. Toimprove the communication and spokenEnglish of the students, an interactiveLanguage Lab has been setup. Studentslisten to the native speakers of English andstudents learn the phonetic sounds of theEnglish with the help of language Lab whichis equipped with necessary listening,speaking, and writing provisions.

Students come from various geographicallocations which includes rural areas alsowhere there is no English medium schools

or the level of English medium school is notgood. Therefore they lack in English.Language lab helps student in improvingtheir pronunciation and accent. Sessions areorganised by a well trained faculty afternotifying it to the students.

Yoga and Meditation: “Yoga and Meditationis considered as a healthy way of life, a soundactivity for stress free living”. College/Institutepromotes health benefits among the facultymembers and students through Yoga andMeditation. Wellness platform enormouslyhelps students in creating stress free, healthyand optimistic environment for living. YogaCenter is available for students and staff ofthe institution. Yoga and Meditationprograms are conducted in the institute.Institute celebrates “International Yoga day”since its inception. Methods of meditation areperformed to lead a healthy and stress freelife.

Institute organizes yoga and meditationsessions for students and faculty members.It has a “Room of Silence” where studentsand faculty members can go and meditateunder guidance of faculty in-chargewhenever they feel during working hours.Students and faculty members have attendedmeditation sessions outside Indore also.“Dhyan Shivir” was also arranged forstudents, faculty members for three days.Holistic wellbeing is essential for capabilityenhancement of students and the institutesupports the same through various activitiesof yoga and meditation.

Personal Counselling: Students frequentlyencounter problems which needs a timelyredressal. Mentor Mentee Program gives anopportunity to students to interact with afaculty member for their personal counseling.Appropriate solutions are provided tostudents during this counseling. Problemsmay be related to academics, career andpersonal.

Vocational Education and Training:Sessions/courses are organised by the


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Institute for students so they can grab theopportunity for getting skill based trainingwhich can help them in getting into desiredniche area. Certificate courses on Six Sigma,Insurance policies selling (approved byIRDA), Tally etc have been started forstudents.

3. Student Grievance and SexualHarassment: Student grievance is a commonproblem in any institute. Student grievancemay be between senior and junior studentsor between one junior and another juniorstudent or between one senior and anothersenior student. Sexual harassment includessuch unwelcome sexually determinedbehaviour(whether directly or byimplication) as: “A demand or request forsexual favours”; “Physical contact andadvances”; ”Sexually coloured remarks”;”Showing pornography”; “Any otherunwelcome physical, verbal or non-verbalconduct of sexual nature”.

Institutes has a “grievance redressalcommittee” to solve the disputes of studentswhenever it comes in the knowledge of theinstitute. Institutes try to solve the grievanceas soon as possible. If grievance is solvedsoon and victim is satisfied then it creates apositive image of the institute. In the samemanner “sexual harassment committee” alsolooks into the matter whenever it comes ininstitute’s knowledge. This committee alsohas a student representative to maintaintransparency.

Institute has a “Discipline Committee”,“Sexual Harassment Committee and AntiRagging Committee” consisting of facultymembers and student along withrepresentation from NGOs. Whenever thereis any issue then the committee looks intothe issue and problem is solved as soon aspossible.

4. Placement of Outgoing Students: Role ofan institute does not end by providingquality education but an institute also has toensure whether students are well placed or

not. Institute has to regularly look forcompanies who can absorb students withgood package. Institute has a Placement Cellwhich has students who support TPO incalling the HRs of companies, sendingstudents’ details to companies, arrangingcampus interview and looking afterhospitality of recruiters. Students have beenplaced in National and International levelorganizations. Training is imparted byPlacement Cell to give input to students sothat they can be well quipped before facingan interview. This input is given by facultymembers and alumnus also.

5. Students progression to higher education:Institute always believes that the studentsshould move out for further education to arenowned institute where students areconsidered as ambassador for the institute.They may move out abroad or national levelinstitutes for higher studies and Ph.D.programs.

Students are encouraged to clear NETexamination who have aspiration to joinacademics. Students take guidance fromfaculty members as institute has wellqualified faculty members. In many PSUsManagement Trainees are selected on thebasis of NET examination. NET examinationis the pre-requisite and then interview isconducted. There have been few studentswho have gone to abroad for furthereducation like Masters program and Ph.D.programs. Also many undergraduatestudents prefer to undergo postgraduateprogram from institute due to its excellentstudent support and progression initiations.

Support in Participation in Sports /CulturalActivities at National/International Level

Institute organizes annual sports festival forthe students. The students can participate invarious sports contests organized like Chess,Cricket, Badminton, Basketball, Table Tennis.Students compete in their respectivecategories of choice and the individual eventsare judged by well-known empires. The


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events are held under the supervision of theFaculty in charge, thereby ensuringtransparency. These events contributetowards inculcating feeling of camaraderiealong with enthusing the students withcompetitive zeal. Students from this institutehave participated and represented theInstitute at various Intercollegiate,University, State, Regional and NationalLevels achieving first as well as secondpositions in various competitive categories.The institute supports and spouses suchparticipation to encourage overalldevelopment of students.

Cultural events and activities are organizedat national level by the institute for studentsto development inter institute, inter personalskills. These activities also give the studentsan opportunity to excel in the field of theirinterest and passion. The instituteencourages students to participate in variouscultural events held at a variety of platformsnamely local, state, regional and national.Students have shown great enthusiasm inparticipation in singing, dancing, playinginstruments and Fashion shows and havewon many accolades as well.

CONCLUSION

Prestige Institute of Management andResearch has been doing efforts to offerpersonal counseling, career counseling.Placement cell arranges sessions beforecampus so that students’ knowledge isbrushed-up. Alumnus and other guestspeakers are also invited for a, special talk toenhance the skills of students. Institute hasa policy to provide financial support tostudents while they face difficulty in

depositing fee. Institute strives to provide aconducive atmosphere encompassingquality education, extra-curricular and co-curricular activities for over all developmentof students. Well placed students becomeambassadors for institute. Many students ofthe Institute have started meditation as aregular practice to minimize stress. Manystudents take part in yoga sessions also.Institute believes in running vocationalcourses which can equip them for the currentdemands.

References

Easterby-Smith, M., Crossan, M. and Niccolini, D. (2000).Organizational Learning: Debates Past, Present and Future,Journal of Management Studies, 37 (6), 783-96.

Fenwick, T. (2003). Examining Workplace Learning in NewEnterprises, The Journal of Workplace Learning, 15 (3), 123-32.

Gray, H. and Prahlad, C.K. (1991). Corporate Imaginationand Expeditionary Marketing, Harvard Business Review, July-August.

Mole, V., Boisot, M. and Griffiths, D. (1996). Theory andPractice: An Exploration of the Concept of Core Competencein BP Exploration and Courtaulds, British Academy ofManagement Conference, September.

Ikujiro, N. (1991). The Knowledge-Creating Company, HarvardBusiness Review, November-December, 96-104.

James, P. (2005). Fostering Creativity and Productivity throughEmotional Literacy: The Organisational Context, Developmentand Learning in Organisation, 19 (4), 5 - 7.

Rosete, D. and Ciarrochi, J. (2005). Emotional Intelligenceand Its Relationship to Workplace Performance Outcomes ofLeadership Effectiveness, Leadership and OrganizationDevelopment Journal, 26 (5), 388-99.

BibliographyArgyris, C. and Schon, D. (1981). Organizational Learning,Addison-Wesley Longman Publishing Company, Boston.

Bruner, J. (1990). Acts of Meaning, Harvard University Press,Cambridge.

Lave, J. and Wenger, E. (1991). Situated Learning: LegitimatePeripheral Participation, Cambridge University Press, Cambridge.

Polanyi, M. (1958). Personal Knowledge: Towards a Post-criticalPhilosophy, Routledge and Kegan Paul, London.

Vygotsky, L.S. (1985). in Wertsch, J. (Ed.), Vygotsky and theSocial Formation of Mind, Harvard University Press, Cambridge,MA and London.


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TESTING THE CAPITAL ASSET PRICING MODEL (CAPM) ANDCAUSAL RELATIONSHIP: A STUDY OF HEDGE FUND SECTOR IN

INDIA

Deepika Batra*, N. K. Totala**

India today needs its financial market to be developed strategically to achieve its goals to becomea super power by 2025. This study is done with the aim of providing a better and a deeper insightinto Hedge Funds, an emerging investment avenue and their sectoral study in Indian economy.The performance of Hedge Fund Sector in India has been analysed through the application ofCapital Asset Pricing Model. The tests do not essentially provide validation against CAPM;however, other simulations can be built, more close to reality, by improving the model andoffering an alternative which also takes into account the specific conditions of the Indian capitalmarket and the global financial crisis consequences. The study aims to find whether therelationship between expected return and risk is linear, if beta is a complete measure of the riskand if a higher risk is compensated by a higher expected return. Furthermore, the casual relationshipamong the stock market and the Hedge Fund Sector in India and few sample Hedge Funds usingGranger Causality on EVIEWS 10 software have been studied. This study will help in gaining abetter understanding of what an investor looks for in Hedge Funds and will help to developbetter understanding towards them.

Keywords: Hedge Funds, Risk Return, Capital Asset Pricing Model, Granger Causality.

INTRODUCTION

Hedge Funds’ investments styles have beendrastically changed in last few years. Therehas been no exact definition of Hedge Fundstill date (Agarwal and Naik, 2000). A HedgeFund is an investment avenue where themanagers of the fund expect absolute returnsby investing into those opportunities whereat least principal amount is protected fromany financial losses (Ineichen, 2012). With thegrowth in the market share of Hedge Fundsand their greater visibility in the market place,concerns have been expressed about therelationship existing between the risk andreturn of the funds. This research study isconcerned with Hedge Fund sector in Indiacovering five years period from 2013-2018.The study, basically aims to investigate andtest the validity of the Capital Asset PricingModel (CAPM), in Hedge Fund sector inIndia. The methodology used for this study,

was to find out the expected returns usingCAPM by calculating beta (²) through Slope,using Microsoft excel, version 2003. Similarly,the actual and expected returns werecompared. Findings and results of thisresearch study advocated the accuracy ofCAPM, but for a very small period, and formerely a few funds. Concerns regarding theexistence of the relationship between the riskand return of Hedge Funds have been felt.Market liquidity is also one of the significantfactor affecting Hedge Funds. Risk premiumand good returns are observed in the Fundshaving illiquid securities. However, marketliquidity and systematic risk are related to theissue of systemic risk (Brophy, et. al., 2009).


Hedge Funds are generally regarded asprivate investment vehicles which are openfor wealthy individuals or institutional

* Assistant Professor, Shri Vaishnav Institute of Management, Indore.** Reader, Institute of Management Studies, Devi Ahilya Vishwavidyalaya, Indore.


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investors (Fung and Hsieh, 1999). HedgeFunds constitute three main types ofquantifiable risks: market risk, credit risk andliquidity risk which are interrelated and areproperly identified and evaluated. HedgeFund’s risk is further divide the risk intoendogenous risks which is addressed byinternal measures and regular due diligencethat includes operational and model risks(Tibrewal, 2008). Hedge Funds are perceivedas the return maximizers as well as riskreducers but, in practice while applying verypeculiar, unique, specific varieties ofinvesting and other strategies, they arenormally perceived to exercise the bothtogether but individually and that toosimultaneously at the same time (Jobman,2002). Hedge Funds are institutionalinvestors just like mutual funds but onlyhigh net worth individuals and institutionsinvest in Hedge Funds (Tibrewal, 2008).Many studies described a variety of HedgeFund databases that included Hedge FundResearch (HFR), Credit Suisse/Tremont,MSCI, Lipper TASS, EACM, Zurich, EurekaHedge, Tuna, and Centre for InternationalSecurities and Derivatives Market (CISDM).No database is complete even if eachdatabase contains multiples of Hedge Fundsand their associated returns. It wasconcluded that many Hedge Funds reportedonly to a subset of available databases.Hence, many academics and large HedgeFund investors usually subscribe to multipledatabases to get a more complete picture ofthe Hedge Fund universe (Hamza, et. al.,2006; Malkiel and Saha, 2005). The choice ofdatabase selection also affects the conclusionsabout Hedge Fund performance in researchstudies (Joenvaara, et. al., 2012). The investorsin Hedge Funds faced a considerable risk ofselecting a miserably performing fund or afailing one (Malkiel and Saha, 2005). Aregression was performed in a Hedge Fundfactor model to determine the portion of riskderived from the market and the valueadded by the Hedge Fund manager. Thetypical regression was:

Hedge Fund return = Alpha + Risk free rate+ “ Beta i * Factor i

Alpha = Total return of the Hedge Fund inexcess of the risk free rate and the includedfactor or market exposures (Beckers, et. al.,2007; Kat, 2004). Hedge Funds took greaterexposure in rising markets and less exposurein declining markets and evidences ofnegative market timing skill among fund-of-funds managers were found (Beckers, et. al.,2007). Hedge Funds, as a group, did not earnpositive alpha but simply provided investorswith the ability to access alternative betaexposures (Amenc, et. al, 2002). The CapitalAsset Pricing Model (CAPM) gives a majorreport of the relationship existing betweenrisk and return in efficient markets(Laubscher, 2002).The Capital Asset PricingModel (CAPM) has effectively contributed tothe finance theory by changing the way ofthinking of academicians and investors(Harrington, 1993). Still some scholars haveacknowledged (Lau and Quay, 1974) CAPMwhile others (Eatzaz and Attiya, 2008) havecriticized it. The initial development of CAPMis accredited to the work of Sharpe (1964),by Bradfield, Barr and Affleck-Graves (1988).Later, Lintner (1965) and Black (1972) alsocontributed to the improvement andenhancement of CAPM.

RATIONALE OF THE STUDY

The industry is attacked for being secretive,engaged in risky behaviour and capable ofunduly influencing the global economiesand corporate activities. An increase in fraudcases involving Hedge Fund Advisers,juxtaposing with an increase in exposure ofunsophisticated small investors to the risksof Hedge Fund investing has enticed thepolicymakers and regulators to bring theHedge Fund Industry under greater scrutiny.Hence, study towards this sector is neededespecially regarding Indian context.


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OBJECTIVES

To evaluate the performance ofHedge Fund Sector in India.

To Study the causal relationshipbetween Indian Stock Market andHedge Fund Sector in India.

METHODOLOGY

The Study: The study is exploratory as wellas empirical in nature. The basic purpose ofthis study was to test the validity of CapitalAsset Pricing Model (CAPM) in Hedge FundSector in India.

The Sample: Out of 337 constituent’s fundswhich invest exclusively in Asia, 95 funds(Population) invested only in India. Out ofthese 95 funds, 21 funds (Sample Size) havebeen used for the research study. Torepresent Indian Hedge Funds, 21 SampleFunds have also been taken for the studyobtained from the database providingcompany named Eureka Hedge FundResearch. Monthly returns were taken intoconsideration.

Tools for Data Collection: For the currentstudy the researchers have used secondarydata to investigate the validity of CAPM inHedge Fund Sector in India. The data wascollected from reliable sources from internetand other published reports of companies.

Tools for Data Analysis: Hedge Funds’performance can be studied with quantitativeanalysis method. The parameters consideredin the present study are Absolute Returns;Standard Deviation; Beta; Sharpe Ratio;Treynor’s Ratio; Jenson’s Alpha and CapitalAsset Pricing Model (CAPM). Also GrangerCasualty was taken into consideration for thesecond objective.

HYPOTHESES

There were eight main null hypotheses andthe seventh and eighth main nullhypotheses had six sub null hypotheses each

under them. The following hypothesesframed were tested through GrangerCausality test:

H01: NIFTY does not Granger CauseEUREKA_HFI;

H02: EUREKA_HFI does not Granger CauseNIFTY;

H03: NIFTY does not Granger CauseHFRI_IND;

H04: HFRI_IND does not Granger CauseNIFTY;

H05: HFRI_IND does not Granger CauseEUREKA_HFI;

H06: EUREKA_HFI does not Granger CauseHFRI_IND;

H07: EUREKA_HFI does not Granger CauseStrategy Specific Hedge Funds;

H07a: EUREKA_HFI does not Granger CauseMalabar India Fund LP - Standard ShareClass USD returns (Long Short EquityStrategy);

H07b: EUREKA_HFI does not Granger CauseEmkay Pearls (Bottom Up Strategy);

H07c: EUREKA_HFI does not Granger CauseElysium India Fund Long Only INR (DualApproach Strategy);

H07d: EUREKA_HFI does not Granger CauseRight Horizons Minerva Fund - IndiaUnderserved (Value Strategy);

H07e: EUREKA_HFI does not Granger CauseEstee India Fund (Arbitrage Strategy);

H07f: EUREKA_HFI does not Granger CauseElysium India Fund Market Neutral INR(Other Strategy);

H08: Strategy Specific Hedge Funds does notGranger Cause EUREKA_HFI;

H08a: Malabar India Fund LP - Standard ShareClass USD returns (Long Short Equity

Testing the Capital Asset Pricing Model (CAPM) and Causal Relationship: A Study of Hedge Fund Sector in India

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Strategy) does not Granger CauseEUREKA_HFI;

H08b: Emkay Pearls (Bottom Up Strategy) doesnot Granger Cause EUREKA_HFI ;

H08c: Elysium India Fund Long Only INR(Dual Approach Strategy) does not GrangerCause EUREKA_HFI;

H08d: Right Horizons Minerva Fund - IndiaUnderserved (Value Strategy) does notGranger Cause EUREKA_HFI;

H08e: Estee India Fund (Arbitrage Strategy)does not Granger Cause EUREKA_HFI and;

H08f: Elysium India Fund Market Neutral INR(Other Strategy) does not Granger CauseEUREKA_HFI

Eureka Hedge Fund Database

Eureka Hedge Fund was started in the year2001 by financial professionals in Japanwhich is a subsidiary of Mizuho Bank. It ishead quartered in Singapore with offices inNew York and Cebu. The company is theworld’s leading independent data providerin the sector of Hedge Funds- their news,indices and databases since 16 yearscovering North America, Europe, Asia andLatin America.

RESULTS AND INTERPRETATION

In order to achieve the objective of the study,i.e., to evaluate the performance of hedgeFund Sector in India; Capital Asset PricingModel was applied and an attempt wasmade to calculate the expected returns of theSample Hedge Funds by the investors andinterpreting the results thereafter. Resultsshow that:

The beta of Banyan India Portfolio washighest i.e. 1.34 and as per risk returni.e. 0.88 percent calculated by CAPMand actually it earned return of 1.55percent which was less than theactual return of Emkay Pearls having

actual return of 2.04 percent whereas,its beta was 0.69 which is less thanBanyan India Portfolio.

On the contrary, results also showedthat, the beta of Estee India Fund waslowest i.e. -0.03 and as per risk returni.e. 0.55 percent calculated by CAPMand actually it earned return of 0.24percent which was less than theactual return of Emkay Pearls.

It is interpreted that Altavista Capital IndiaFund, Banyan India Portfolio, Elysium IndiaFund Long Only INR, Elysium India FundLong Only USD, Elysium India Fund MarketNeutral INR, Emkay Crystal, Emkay Pearls,Emkay Platinum, Emkay PURE I, HeliosStrategic Ltd, Malabar India Fund LP -Standard Share Class USD, MetisOpportunity Fund, Metis Opportunity SMA,Milltrust India Fund - Class A, Redart IndiaTrust, Right Horizons Minerva Fund - IndiaUnderserved, Right Horizons Minerva Fund- India Undervalued, Steinberg IndiaEmerging Opportunities Fund Ltd. andWIOF India Performance Fund - Class I USDare undervalued funds according to CapitalAsset Pricing Model; whereas, Estee IndiaFund and Kuvera Fund are overvaluedaccording to Capital Asset Pricing Model.The contradicting results show that theSample Hedge Funds do not depend on theFund’s beta and the results of CAPM cannotbe relied upon.

Granger Causality Test Results andInterpretation

For this, the top performers have beenidentified from each of the six strategies fromthe sample on the basis of Risk ReturnStatistics. The best outperformer sampleHedge Funds have been given in Table 5.

The results and interpretations of individualhypothesis indicated the directional bilateralrelationship among the studied variables.The study inferred that the calculated p value


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for the framed null hypothesis were above0.05; hence, all the null hypotheses wereaccepted and the Alternate Hypotheses wererejected.

DISCUSSIONS

Objective 1: To Evaluate the Performance ofHedge Fund Sector in India.

Capital Asset Pricing Model was applied andthe contradicting results show that there isno dependency of Sample Hedge Funds onthe Fund’s beta and hence, the results ofCAPM cannot be relied upon. The CAPMmodel in majority cases has never been anempirical success. Variables like size of thefund, fees charged by the managers, andmomentum add to the explanation ofaverage returns provided by beta. Hence, theabove variables can invalidate the applicationof CAPM in this case.

Objective 2: To Study the CausalRelationship between Indian Stock Marketand Hedge Fund Sector in India.

The results of Granger Cause among themonthly returns of Hedge Fund Indices andmonthly returns of Indian Stock Market andamong the monthly returns of Hedge FundIndex and Hedge Funds belonging to LongShort Equity Strategy, Bottom Up Strategy,Dual Approach Strategy, Arbitrage Strategy,Value Strategy and Others Strategy indicatesmay infer that the constituents or thesecurities of the study variables seem to besimilar with the constituents or the securitiesof each other, subject to further confirmation.It is also found that the Indian Hedge Fundsector is highly sentiment driven andstrategies of them may change according tothe sentiments in the markets.

CONCLUSIONS

Capital Asset Pricing Model was applied tofind the difference between expected and theactual returns of the Sample Hedge Funds.It was concluded that there exists no

dependency of Sample Hedge Funds on theFund’s beta. The CAPM model philosophystates that higher returns calls for higher beta,which in this case, stands false. This meansthat this model does not stand justify neitherin the present Indian Stock Market nor in theIndian Hedge Fund Sector. Hence, CAPMresults could not be relied upon. It isconcluded that the monthly returns ofHedge Fund Indices do not have GrangerCause monthly returns of Indian StockMarket and also the monthly returns ofHedge Fund Index do not Granger CauseHedge Funds belonging to Long ShortEquity Strategy, Bottom up Strategy, DualApproach Strategy, Arbitrage Strategy, ValueStrategy and Others Strategy. This concludesthat there is no bearing among studyvariables. It seems that the probable reasonsmay be their large volume, shape and fundsize. Also, their strategies of the constituentsseem to be similar to each other, subject tofurther confirmation, giving a scope of newvistas of new researches.

SUGGESTIONS

When the prices do not reflect theprospective returns accurately, the stocks areundervalued. Hence, it is suggested thatprice alone cannot be used to determine theactual value of the funds. Also, an emergingsector might be undervalued until it provesits usefulness in the market. Therefore,investors are suggested that they should notcompletely rely upon CAPM model in thiscase. The hedge fund industry shouldperhaps focus on promoting the beta-benefits of hedge fund investing, which aresignificant and less arguable, as opposed topromoting the alpha-benefits of hedge fundinvesting, which are very hard to measurewith any degree of accuracy.

It is suggested that the future of alternativeinvestments may lie in the passive indexingstrategies. The suggestions have beenfurther incorporated according to the variousstake holders described as follows:


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1. Suggestions to Hedge Funds andAsset Management Companies (AMC’s)

Greater transparency and dissemination ofrelevant information is the need of the hour.Hence, for this advancement of the industryfurther researches should be carried out(Totala, et. al., 2014). Regulatory provisionsdesigned should be able to deal with theadverse economic situation and suddenfailure and collapse, if any. Capital marketefficiency should be increased (Batra andTotala, 2017). Hedge Funds’ operations needto be further monitored at the macro-economic level. Proper disclosure about fundmanagers profile and creditability is neededfor different stakeholders in public. Riskascertainment of different Hedge Funds andthe investors matching such level of risksshould be registered at a common platformto gain the popularity of the sector (Batra andTotala, 2018).

2. Suggestions to Hedge Funds’Investors

The investors in Hedge Funds may investinto young aged Hedge Funds andespecially with new managers who havegood track record and own stake into theinvestment of the Hedge Funds, This willreduce risk of generating returns (Totala, et.al, 2015a). The investors should also focustheir research on Hedge Funds’ managersand their previous performances along withthe fees that they charge along with their prosand cons (Batra and Totala, 2017).

3. Suggestions to RegulatoryAuthorities

Self regulating guidelines with a strict courseof action against in case of non-complianceshould be provided by the regulatory bodiesin a positive and favourable approach(Totala, et. al., 2015b). It is suggested that inemerging economies like India, theregulatory authorities should have a clearguidelines for the different stake holders in

the Hedge Fund sector and introduce aseparate comprehensive Act (Totala, et. al,2016). Experience of the other countriesshould also be considered (Batra and Totala,2017).

4. Suggestions to Tax Authorities

The taxes for Hedge Funds are as mysteriousas they are by design in India because theyare mostly organized in the form of trust orlimited liability partnership form. Hence, itis suggested that tax authorities can chargetax on long term capital gains as well as shortterm capital gains along with introduction tosome provisions for ordinary income taxationpolicy in case of Hedge Funds.

5. Suggestions to Economists,Academicians and Researchers

It is suggested that the economist can workon the informational, analytical andbehavioural edge, where contemporaryeconomic situations like corporate spin-offs,index de-listing, supply-demand imbalancecan be synthetically be created.

IMPLICATIONS

It is implied that Hedge Fund sector is underevaluated in present scenario. Hedge Fundsector is to do something more for thepresent situation to outperform andovercome. Greater transparency needs to beintroduced and the result of the greatertransparency needs to be disseminatedaccurately and fastly among all stakeholders,so that real performance also gets reflected.

It can be inferred that one can even directlyinvest into Hedge Funds because of theiruniqueness. Also, the study has animportant implication from the investmentsmanagers’ prospective as there can bevarious factors of investor ’s purchasedecision during Hedge Funds’ investments.


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Scope of Further Study

The current research work paves the pathof further researches. Further, research maybe undertaken by taking more sectoralindices and industry specific Hedge Fundsindices into consideration. Indianoutperformed Hedge Funds’ performancemay be compared with globallyoutperformed Hedge Funds. Track record offund managers may be trailed out on acommon index of individual performance.

References

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Batra, D. and Totala, N. K. (2018). A Review of Hedge Fund’sStrategies in Global Economy. Prestige International Journal ofManagement and Research, 10 (3), February, 26-34. ISSN: 0974-6080.

Beckers, S. Curds, R. and Weinberger, S. (2007). Funds ofHedge Funds Take the Wrong Risks. Journal of PortfolioManagement, 33 (3), 108-121.

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Bradfield, D.J., Barr G.D.I. and Affleck-Graves, J.F. (1988).Macroeconomic Identification of the Pricing Factors on theJohannesburg Stock Exchange. South African Journal of BusinessManagement, 19 (1), 11-21.

Eatzaz and Attiya (2008). Testing Multifactor Capital AssetPricing Model in Case of Pakistani Market. International ResearchJournal of Finance and Economics, 25, 114-138.

Fung, W. and David, H. A. (1999). A Primer on Hedge Funds.Journal of Empirical Finance, 7, 1-36.

Hamza, O., Kooli, M. and Roberge, M. (2006). Further Evidenceon Hedge Fund Return Predictability. Journal of WealthManagement, 9 (3), 68-79.

Lau, S. and Quay, S. (1974). The Tokyo Stock Exchange andCapital Asset Pricing Model. The Journal of Finance, 29 (2), 507-514.

Laubscher, E.R. (2002). A Review of the Theory of andEvidence on the Use of the Capital Asset Pricing Model toEstimate Expected Share Returns. Meditari Accounting Research,10, 131-146.

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Malkiel, B. G. and Saha, A. (2005). A Hedge Funds Risk andReturn. Financial Analysts Journal, 61 (6). CFA Institute.

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Bibliography

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ANNEXURES


157Testing the Capital Asset Pricing Model (CAPM) and Causal Relationship: A Study of Hedge Fund Sector in India

159Testing the Capital Asset Pricing Model (CAPM) and Causal Relationship: A Study of Hedge Fund Sector in India

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NATIONAL OLYMPIAD FOUNDATION: AN EDUCATIONALENDEAVOUR*

Company’s Background

Two friends Amit (22 years) and Sandesh (26years) conceptualised an idea of starting afoundation in education field and startedworking on making it a reality. They used todo jobs in the day time for financial support.In the late hours they were working over theexecution part of the business. In the year2012, Amit and Sandesh established a smallstart up in Indore (MP), India “NationalOlympiad Foundation Pvt. Ltd.” with a smallcapital of Rs. 30,000. National OlympiadFoundation (NOF) constituted docking ofacademic talent and social entrepreneurshiphelping the talent to come out from the wallsof classroom. NOF used to conduct, its ownglobal talent search exam where theresources are utilized for children in needwho are ignorant about education. NOFfetched students from all over the globe,bringing them on a common platform. Auniform platform, that distinguishedstudents on the basis of subject, age.Olympiad tests were based on knowledgeon different subjects i.e. Maths, Biology,Science and Commerce for the schoolstudents of 1st to 12th standard.

They conducted test for 14,000 Students in asingle run in Satna (MP), which proved asmilestone towards the success. In 2013, theyleft their jobs and got fully involved in thisventure. This was the time when they startedfacing problems in terms of fear to approachschools, convincing the Principals as theywere young and had less experience inacademics. To avoid these obstacles, theydecided to bring into renowned namesonboard. Somehow, they managed to

approached Mathematician, for preparingtest papers who accepted their proposal bylooking to their conviction and passion.Later in the timeline, they got another wellknown academician from the Commercestream on Board. An exclusive body ofacademicians of national and internationalfame prepared all the questions papers forthe examination.

The Unsteady U-Turn

NOF faced a big financial crunch in 2013-14,which hindered their passage to the success.At this point of time, they were notpenniless. Unavailability of monetaryresources compelled them to leave theiroffice and sell their hardware. The companysize remained from 20 to 03 employees. AmitStated “Don’t Get Emotional with YourProduct, Logical Conviction is MoreImportant For Market Acceptance”. NOFcontinued working from cyber cafes, andtheir friends’ offices to manage theiroperations, without losing hopes. They usedschool networks. In the year 2014, somehowthey managed to bring 40 IITians and 52IIMites onboard,who supported themwithout any monetary exchange. In the year2014, NOF added General Knowledge andAptitude subjects. English was added in year2015 and in the year 2019, two moreOlympiad tests for Hindi and French wereadded in their portfolio. In order to deepentheir reach, in September 2019, NOFlaunched Digital Animation based Olympiad“NOF Junior”. Their vision was to conducttests for more than 2 million registeredstudents by the year 2024. NOF acquired aJaipur (Rajasthan) based company

* The case has been developed by Ankita Jain, Assistant Professor at Shri Vaishnav Institute of Management, Indoreand Research Scholar at Prestige Institute of Management & Research, DAVV, Indore (M.P.) and Dr. Anukool M. Hyde,Professor and HOD- HR and General Management at Prestige Institute of Management and Research, Indore (MP) in theyear 2019.


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“EDURER” (founded by 5 IITians andfunded by Government of India) which wasworking for R&D through AI (ArtificialIntelligence) and which kept a tab on thelatest developments on the subject mattersto ensure the quality and competency of theexamination can be maintained on anInternational ground to encash the futureopportunities.

Currently NOF is having set up of 01 officeand 41 employees and covering 9 subjectbased test series, 11+ countries, 4500+Schools and 3Million + students(cumulative) with 94.3 percent of schoolretention rate.

NOF at Social Front: The Noble Cause

NOF collaborated with NGOs (NonGovernment Organisations), CRYfoundation, Teach for India and SmileFoundation which is working for Protectionof Children Rights, Education and Health etc.NOF distributed books and providedfinancial and operational support to conductthe examination for poor children. NOFlaunched Project ‘Prarambha’ to educate25000 underprivileged students. Every yearthey supported thousands of children whowere in need of education, uniforms, books,stationary and mid day meal. Every timewhen a student appeared for NOF exams,some portion of the fee donated towards theeducation, food and uniform forunderprivileged children and this way, everystudent acted as a brand ambassador forNOF as they were behind the glory of raisingeducation level in the country.

Competition and Revival

In 2014-15 Amit and Sandesh realised thatthere were facing two big players in themarket. Competitors were well establishedfor more than 30 years, and were having tie-ups with the schools. To beat the competition,they planned to promote themselves forcatering more students by distributing

leaflets (costing 22 paise) through students’diaries. This step helped NOF to reach andconvince parents directly and opting tests.Through this step the whole scenario gotchanged; and the number of students gonehigh revolutionarily with a 400 percent.growth rate.

NOF-Strategies

NOF used to conduct scholastic examinationacross the country. In the year 2015, NOFaggressively started posing footprint inAsian and Gulf Countries like Bhutan, SriLanka, Qatar, Myanmar, Oman, Nepal andso on. NOF worked for increasing thenumbers of students, without Innovatinganything without any Sales Team, NOF gotsuccess due to their working style of AutoPiloting Mode and teams running onGround. The principle points of NOF wereQuality Services, Referrals of Customers,Strong Networking with schools, Integritytowards their customers, DescriptiveAssessment Reports and Analysis, StudentReports through Trend Analysis, Flexibilityin Test Schedules and Multiple Dates,Different sets of question papers to cover bigArea at the same time, Easy access to TestMaterial,E- Operations and use of SocialMedia, like Emailing to connect with schools,LinkedIn, Certificates with good Value toWinners as well as Participants.

Prize and Awards

Whenever students used to register for test,Amit and Sandesh used to utilise money inusing it for cash prize, scholarships andcertificates. NOF used to provide Cashrewards, Scholarships and Certificates to theWinners and participants of activitiesorganised by them. Later on they stoppedgiving cash prizes and started providingelectronic Gadgets, and publishing students’Certificates. Another feature of NOF was that,they were following Horizontal RewardSystem in-spite of Vertical Reward system.Ranks given to the students it they were

CASE STUDY - National Olympiad Foundation: An Educational Endeavour

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classified as Individual Rank, Class Rank,School Rank, City Rank and Country Rank.Appreciation was in the form of ‘ParticipationCertificate to all the participants’, ‘Meritcertificates and Medals to all the toppers’,‘Awards to all the toppers’, ‘Excellence inEducation’, ‘Educator of the year Award’,‘Best School Award’ and ‘Best CoordinatorAward’.

Future Plan

NOF plans to conduct online tests to provideunbiased reports and stronger assessment.To streamline activities, NOF plans to adoptadvanced technologies like Augmented Realityand Gamified Education in their operations, tobring a revolutionary change. Butaffordability and easy availability of

hardware come up as the biggest hindrance.Still Amit and Sandesh are hopeful that theywill win the battle soon.

Questions:

Q.1 Do SWOT analysis.

Q.2 What steps you could have taken, ifyou would be in the place of Amit andSandesh ?

Q.3 With the new era of advancement intechnology, what are major factorswhich should be taken into theconsideration ?

Q.4 Were the strategies sufficient toenhance the business? Comment.


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