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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
SR. NO. P A R T I C U L A R PAGE NO.
1
NAIPAULS MYSTIC MASSEUR : A QUEST FOR IDENTITY
AMIDST DERACINATION

BALKAR SINGH

[PDF]
1-9
2
THE MARKET STRUCTURE, MARKETING PRACTICES AND
PATTERNS OF VEGETABLE MARKET: A MICRO LEVEL STUDY

J ABEEN ARA BEGUM

[PDF]
10-18
3
WORKPLACE SAFETY AND HEALTH LEGISLATIONS IN THE
LEATHER INDUSTRY

MS. GARIMA SRIVASTAVA

[PDF]
19-33
4
CHALLENGES AND OPPORTUNITIES OF ISLAMIC BANKING IN
INDIA

DR . KAVITA CHAVALI, DR. KISHAN RAO

[PDF]
34-40
5
IMPLEMENTATION OF ERP SOFTWARE: A CASE ANALYSIS OF
INDIAN OIL CORPORATION

DR. VISHAL BISHNOI

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41-53
6
RURAL MARKETING: DETERMINANT FOR SUSTAINABLE
BUSINESS GROWTH IN INDIA

HARDEEP SINGH, BIKRAM PAL SINGH, JASPREET KAUR

[PDF]
54-64
7
FORMAL AND INFORMAL AGRICULTURAL CREDIT:
AN APPRAISAL

DR. SUKHVI NDER SI NGH, MI SS RAMNEDI KAUR

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65-76
8
PROSCIS CHANGE MANAGEMENT FOR MIXING OF
INDIVIDUAL CHANGE MANAGEMENT AND ORGANIZATIONAL
CHANGE MANAGEMENT TO ENSURE THE ACHIEVEMENT IN
BUSINESS

T. SUGANTHALAKSHMI, DR. C. MUTHUVELAYUTHAM

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77-85
9
ABSENTEEISM IN INDUSTRIES: PAST TO PRESENT, ANALYSIS
OF LITERATURE

DR. C. K. SINGH, SONAL PUNDHIR

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86-97
10
THE PRIVATIZATION OF PROFESSIONAL EDUCATION SECTOR
IN PUNJAB: AN ANALYSIS

DR. SAPNA SHARMA

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98-111
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ASSESSMENT OF JOB SATISFACTION AND H R PRACTICES:
A CASE STUDY FOR NURSING STAFF

SAROJ B. PATIL, DR. P.T. CHOUDHARI

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112-120
12
WOMEN AS CHANGE AGENTS IN THE DIVERSIFIED GLOBAL
ECONOMY

DR. ASHISH MATHUR

[PDF]
121-127
13
SELF REGULATORY MECHANISM OF ADVERTISEMENTS IN
INDIA

DR (MRS.) MANJINDER GULYANI

[PDF]
128-140
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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
NAIPAULS MYSTIC MASSEUR : A QUEST
FOR IDENTITY AMIDST DERACINATION

BALKAR SINGH*

*Research Scholar, Bharthiar University, Coimbatore,
Tamilnadu.

ABSTRACT

The literature happens to be an aesthetic representation of human feelings which are
otherwise not expressible. It mirors the contemporary society and its rainbow like
beauty as well as its inherent maladies. In modern times, most of the literary works
mark a reaction against the so- called status quo imposed by colonial powers on the
people of Asia, Africa, Caribbean and so on. For centuries, the colonisation forced
the native population of these countries to despise their own history and culture, and
shift their reverence to Europe- led philosophy of Western Superiority Syndrome.
As a result, the millions of colonised people were made to move as indentured
labours to foreign islands. As a result., they lost their relatives, homes, language,
culture and identity. In this context, we find that VS Naipaul examines the chequered
history of such people in detail which has been duly acknowledged by Nobel
Committee in 2001. His works highlight the fact that even after twenty odd decades,
for uprooted people A Quest amidst Deracination is surely on. For this purpose, a
modest effort will be made to evaluate The Mystic Masseur(1997).
______________________________________________________________________________
INTRODUCTION
As we know that Search for I or Search for self has been the pivotal and perennial question
for all the philosophers during all the ages and therefore modern times are no exceptions, in this
regard. Here, we find that in the major works of Naipaul the most important concern from
humanistic perspective remains the Quest for Identity amidst the Maze of Deracination. In
other words, we can describe it as an interesting study of exile and alienation vis-a-vis double
consciousness. The feeling of not belonging to a place yet trying to relate while being torn apart
with a longing for home is found to be a predominant feeling experienced by an exile. The exilic
condition can be best summed up as being suspended in the middle space like Trishanku. Hence,
we have a classical question of philosophy i.e. Who am I and where do I belong to?
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The exilic condition implies constant travel without destination. The protagonist is on a
quest for identity. On the one hand, his ancestral land calls him while, on the other, the adopted
land exerts its socio- cultural and economic pressure on his psyche. Primarily, the stories are
about a land where the nightmares of identity are as ancient and cold as stone and are
inerasable parts of the memories and songs of traditional diasporic people living in Trinidad and
elswhere. It is almost impossible for him to get rid of this oppositional pull between his ancestral
land and that of settlement. Though the adopted land is not the land of his ancestors, his
relationship with the land is potent enough, as he, like many others, is destined to carve out a
niche and identity for himself on this surrogated soil.
Consequently, the exile always faces a duality of experience. In case of Naipaul, this
feeling is witnessed in his fictional characters, most of whom inhabit an alien space and culture.
The pains of acculturation are poignantly portrayed by Naipaul. In all expatriate writers, the
dilemma to choose between the adopted land and homeland is the central driving force around
which move other issues such as racial discrimination, cultural conflict, the persistent sense of
loss and desire for a home. This inevitable conflict has its own ramifications at individual as
well as universal level.
As far as the Naipauls non- fiction is concerned, it seems to be more expressive of his
acute sense of alienation than his fictional writings. The last essay of the first section of his The
Overcrowded Barracoon and Other Articles is the article East Indian wherein Naipaul focuses
on the phenomenon of Indian immigration to the West Indies that began in 1845. He wrote this
article after his first visit to his ancestral land i.e. India. After his visit to India he wrote:
.the West Indies are the part of the New World and these Indians of Trinidad are no
longer of Asia
1
.
His comments on the immigrant community further clarify the picture, he gives us of
them in The Mystic Masseur and more particularly in A House for Mr. Biswas. Although, their
journey from India to Trinidad was an uprooting from the native soil, they were carrying India
with them in their consciousness. As a result, they were able to recreate Uttar Pradesh or Bihar
wherever they went. However, it was an imaginative India, an India without caste and in the
course of time, India could be seen to be no more than a habit, a self imposed psychological
restraint. It is interesting to note that this is exactly what happens in Part Two of A House for Mr.
Biswas. The well-knit Hindu family organization yields to the overwhelming pressures of
changing circumstances. Owad, Anand and Savi go abroad, Shekhar marries into a Presbyterian
family and leaves the fold, Govind and the Tuttles are both transformed by American money- all
this symbolized unbridled ambition and brought about uncertainty. Yet, in spite of all the change,
certain things like the temples, the food, the rites, the names remain unchanged. The most
striking aspect of the people of Indian origin in the West-Indies is their Indian names and
Ganesh, Chittaranjan, Mohun, Anand, Tara are a few to be mentioned.
However, in the course of time, Indian names get anglicized and are not easily
recognizable to the people in India. Thus Shama, Cooblal and Permesar are such changed
versions of the more familiar Shyama, Khooblal and Permeshwar which indicate increasing of
distance from the originary culture of their homeland.
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Naipaul visited India several times in his life. When he began his journey to India in
February, 1962, he had hoped to find at least a society in which his wandering spirit could find
its moorings. India was the land from which his grandfather had been brought to Trinidad as a
baby and from which his maternal grandfather had come as an indentured labourer. In spite of
his early detachment from ritual and religious beliefs, Naipaul could not remain untouched by
Hindu attitudes. He grew up surrounded by mementoes from India, for in its artifact India existed
as a whole in Trinidad. This kept India alive in his mind, even if only as a mysterious land of
darkness from which his ancestors arrived. India, the background to his childhood, was in fact,
an imaginary homeland. The journey to India was undertaken as an exploration of this
imaginative space which later became the Area of Darkness. There is an incessant quest for
finding the homeland among the people of Indian origin. They create beautiful landscape of
imagination. But, as it happens everywhere, landscape of the mind, where his ancestral Area of
Darkness or literary and intellectual utopias, usually shock and disenchant, when confronted
with stark reality. Such experiences, where utopias in reality are found non-existent, the seekers
of homeland are shocked as Naipaul himself was, on coming to India. Despite being
disillusioned, the craving for the mythical homeland remains alive.
Hence, Naipaul came to India with great expectations, in spite of his feeling that India
was a country to which he was not at all associated with. India was everything that Trinidad was-
it was not a forgotten dot on the map of the world, it had an ancient civilization. Most
Trinidadian- Indians grew up looking to India as the motherland. The link with India gave them a
sense of pride and preserved them from the self-contempt that Negroes, who could assess
themselves only with reference to white standards and values, invariably suffered from. In the
absence of metropolitan culture, Naipaul quite reasonably expected geographical, intellectual and
cultural largeness from this land of his ancestors. His expectations however did not take into
account the fact that for two hundred years, India had been under the crippling oppression of
British colonialism. He came seeking metropolitan largeness in India and found in India as in
tiny Trinidad, the feeling that the metropolis is everywhere, in Europe or America. His
expectations and search for roots were not fulfilled; instead he found the colonial attitude of self-
distrust in this erstwhile British colony.
Like Naipaul, his characters make a desperate bid to arrive at a meaning and purpose of
life. They are rootless individuals who yearn for a way of life, a kind of experience for which
they are not physically or mentally prepared. The gap between their desire and their native
character which is very much conditioned by their colonial moorings generate a sense of
vacuum, fatality and helplessness. The colonial set up had a great deal to do with his making as a
novelist. Hence Naipaul says:
It came to me that the great novelists wrote about highly organized societies. I had no
such society; I could not share the assumptions of the writers; I did not see my world
reflected in theirs. My colonial world was more mixed and second hand and more
restricted.
2

Thus, VS Naipaul had to go back to the beginning, forgetting Oxford and London, and to
those early literary experiences, which were not shared by anybody else. While in his early
novels, The Mystic Masseur (1957), Miguel Street (1960), A House for Mr Biswas (1961), he
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used the familiar milieu of the land of his early upbringing, Trinidad, he shifted the setting of his
future writings to India, Africa and Latin America, both in fictional and non- fictional narratives.
It is not that VS Naipaul is torn only between the two lands of Trinidad and India. The
doubleness of his consciousness continuously changes. He has always been looking at London as
the ideal place to settle. So, he is not torn not only between India and Trinidad but also India and
London. This tripartite pull finds expression in fiction and non-fiction, where the theme of
fatalistic deracination and double-consciousness of the expatriate is fully explored.
The quest for identity or search for the roots has acquired myriad connotations and gets
manifested in various ways e.g in the will to survive and exist despite all odds. The literature of
diaspora focuses on the dislocation of an individual or a race and the consequent alienation.
Alienation leads to a sense of loss but life consists not in the loss alone but in the rediscovery of
the self. Naipaul seems to champion the issue of rediscovery of the self and this becomes a
recurrent theme in his writings.
In The Mystic Masseur Ganesh Ramasumairs search for roots takes him to various
stages of transformation and finally the face that he could discover was that of G Ramsay Muir.
In A House for Mr Biswas Mohun Biswass search for a house is a metaphor for his search for
his own place. Half- a- Life too is apparently a record of Willie Somerset Chandrans quest for
identity. Critics have spoken of his feelings of inherited displacement because of his having been
born of Indian parents in West Indies. He is a citizen of an exiled community with no natural
home. India, where he looks for a home, only reminds him of his distance from his roots.
The desire to stick to ones culture always makes one consciousness about ones heritage and he
tries to preserve it in any manner. He sticks to his traditional food, manners and most importantly
his mother tongue. Pain of forgetting the mother tongue finds an important place in the mindset
of the colonized. Existence is meaningless unless it is expressed appropriately and language is
the power and tool of expression. Displacement brings dispossession of this power which
aggravates the sense of alienation. The immigrant is always at a disadvantage in a foreign land
and his/her escape depends on the degree of his/her adaptability to that condition which is
essentially alien. In the process of initiating learning the language of the alien people becomes
the most potent instrument to come to the immigrants help. But an inability to forget the native
language and learn the language of the place casts a shadow on the immigrants prospects in
his/her adopted country. None but Naipaul could understand the agony of losing ones language.
In his Nobel lecture in 2001, he revealed candidly the trauma of migration and the consequent
loss of language in these words:
The world outside existed in a kind of darkness; and we enquired about nothing. I was
just old enough to have some idea of the Indian epics, the Ramayana, in particular. The
children who came five years or so after me in our extended family didnt have this luck.
No one taught us Hindi. Sometimes someone wrote out the alphabet for us to learn and
that was that; we were expected to do the rest ourselves. So, as English penetrated, we
began to lose our language.
3

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This phenomenon of loss of identity, the quest for identity, exile, alienation and double
consciousness can be further explicated and analyzed from this perspective by means of
evaluating his famous work The Mystic Masseur as following:
THE MYSTIC MASSEUR (1957)
Authors first novel The Mystic Masseur itself shows in good measure this element of
deracination and quest for identity. The Mystic Masseur is placed firmly in the East Indian
milieu of Trinidad. This protagonist, who had been apparently taking shape in Naipauls mind
since he was a child of eleven, is a representative figure. The narrator in The Mystic Masseur
expresses the view of the writer that the history of Ganesh is the History of the people of his
times.
Though,he is happy to be back where he is known and respected, his contact with city life
and his education created in him an indefinable sense of alienation. He knows the Fourways
people, and they also know and like him much but he feels mentally and emotionally cut off
from them. The novel is set in Port of Spain and the rural area of Trinidad where the Indians
lived and worked, and is a comic study of life in Trinidad in the face of the rise of post-colonial
politics. The central concern of the narrative is the meteoric rise and metamorphosis of Ganesh,
the protagonist. The Mystic Masseur is in a way the equally painful story of a man's negation of
his origins. It tells the opposite tale of the process not of recovery, but of loss- of how Ganesh
Ramsumair, a Brahmin of Indian origin becomes G. Ramsay Muir- a mimic man. Even in their
carefully preserved, reconstructed Indian village-life these men and women are quite aware of
the fact that they are not in India. Their way of life is altered from their lives in India by the
pressures of the environment, no matter how much they cling to customs and rituals.
Ganesh's rise from a masseur to mystic and then to M.L.C. may have elements of farce
about it but the episode which launches Ganesh as a mystic, has nothing farcical about it. Ganesh
prepares for his first case seriously and with full dedication, like a school boy. There is nothing
of the impostor or trickster in his attitude. Both Ganesh and Leela are humanly involved and the
commercial aspect is quite forgotten in their sympathy for the distressed people. Leela tells
Ganesh:
Man, I hope you could help the lady out. I feel too sorry for she. She just sit down quiet
all the time, not saying anything, she face small with sadness.
4
Ganesh adopts an intelligent and effective psychological approach and sympathetic
identification with his client. His treatment of Bissoon, a tragic figure, also speaks of his
generous nature. He perceives Bissoon's poor circumstances and tries to help him with a gift of
money. Ganesh's is a success story Bissosn's being the other side of the coin, hinting at the
grimmer alternative.
Even after he has achieved a measure of success and a reputation as mystic, Ganesh
shrinks into himself when venturing into the alien world of Port of Spain. He does not have the
courage to a visit the Registrar General's Office. He still finds himself to be an alien. Later, at the
Government dinner as an M.L.C., he finds the whole ritual mortifying. He feels alien and
uncomfortable. He grows sulkier and sulkier and refuses all the courses. The meal proves to be a
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mental torture to him as he finds it as traumatic as going to the Queen's Royal College for the
first time.
The move from Fuente Grove to Port of Spain is equally torturous. He wishes painfully
that the whole thing should not have ever happened. Beharry's effort at consoling him that he
could understand the pain of leaving a place after eleven years of attachment, implies his failure
to understand the true reason for the grief of Ganesh. It is not only leaving Fuente Grove that is
distressing for Ganesh. He also knows that he is leaving behind something of his past forever. To
survive in the Creole World of Port of Spain he will have to give up being himself. He has
retained Indianness even in Fuente Grove. But, now he is attempting to fit himself in the alien
atmosphere.
The moment, the East Indian stepped out of the protective atmosphere of the village
enclave, he became immensely vulnerable. He was made painfully self-conscious about his
backwardness. At the railway station of Port of Spain, the Indian outfit of Ganesh and his father
evokes laughter of a woman for their sartorial incongruities such as dhoti, koortah, with cap and
an unfurled umbrella of the old man and new outfit of Ganesh which marks him as an Indian
from country. Ganesh's years in Queen's Royal College are years of awkwardness and
embarrassment. He felt awkward on account of his Indian name Ganesh. He was so ashamed of
it that for a while he spread a story that he was really called Gareth and not Ganesh. This hiding
behind an anglicized name is his incipient struggle to circumvent an identity crisis which is
qualitatively different from the one at the end of the novel when he assumes another anglicized
name, G. Ramsay Muir. In Ganesh's instinct to hide behind the name Gareth, the author is
sympathetically aware of the pains of adjustment to an unfamiliar environment.
Since dislocation is a recurrent phenomenon, therefore the adaptation happens to be the
key to survival. This remains an important theme in Naipaul's work, a way in which he has
explored the challenges to the preservation of identity in an alien environment. That many
Indians felt the compulsion to take an anglicized name, does suggest that they found it difficult
to preserve their cultural identity in the Creole world. However, even when they surrendered
their names in a move to identify with their environment they met with a measure of contempt
and hostility. One of the Calypsos of the forties mocks the Indians thus:
What's wrong with these Indian people?
As though their intention is for trouble
long ago you'd meet an Indian by the road
with his capra waiting to take people load
but I notice there is no Indian again
since the women and them taking Creole name
Long ago was Sumintra, Ramnaliwia, Bullbasia and Oosanklia.
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But now is Emily, J ean and Dinah and Doris and Dorothy.
5

When his father's death forces his return to Fourways, Ganesh is happy to get away from
Port of Spain. He had spent five years there but he had never become used to it or, felt a part of
it. It was too big, too noisy, and too alien for him. His humiliation at the Port of Spain school
where he worked for a brief period as a teacher and, his giving up his job after his dispute with
Miller, compounds an already aggravated crisis. As a teacher in Port of Spain, he had to face
irritating and humiliating comments from his Creole colleagues when one of them sarcastically
remarks that teaching is an art which is beyond the talent of man coming from cane fields,
Ganesh loses his temper and leaves the school. This episode shows that the hero's assimilation
into an alien culture is not easy; his Indian self revolts against the humiliation. Ganesh is
Naipaul's symbolic depiction of the psyche of an exile struggling for recognition. It implies that
he is aware of himself being a misfit in the present. His mind always functions in the present
with the memories of the past. The realities of the new world now force him back to the country
to try his luck on the home turf.
Though Ganesh is trying to make his impact clear and distinct in the emergence of the
new nationhood of Trinidad, he along with Harbans and RRK Singh suffers from self deception.
Inwardly, he contrasts Trinidad with the larger consciousness of sophisticated London. There is
obviously a physical and intellectual poverty in the midst of plenty. Ganesh and his ancestors
lived in a very circumscribed life as labourers doing sub-standard work. Set in the West Indies,
on the eve of independence, The Mystic masseur highlights the displaced and mediocre
individuals in pursuit of recognition and success.
The compromise with the basic integrity begins, once financial success comes to him.
Ganesh's resistance begins to weaken. It is evident that while his own attitude is undergoing
subtle alterations under the influence of success, it is those surrounding him- Leela, Beharry and
Ramlogan who almost compel him to use ways and means he does not approve of initially. This
is a kind of unwelcome change in Ganesh's life. Though he is reluctant, he has to accept them. It
is the Indianans that constantly obstructs him in adopting the Trinidadian life style. This
phenomenon is quite similar to the interference of L1 or First Language or Mother Tongue (L-
stands for Language) while learning L-2, L3 or any foreign language.
The reason for Naipaul's discourse of aspiration in The Mystic Masseur is his own
dilemma over the question of home. He has his own irreversible feeling of disaffection for
Trinidad with its reality of maladjustment in a colonial multicultural society. On the one hand,
there was the colonial West Indian picture of slavery, exploitation and squalor, on the other, the
East Indian's anxiety for acculturation into the Creole world. On one hand, there was Naipaul's
Hindu ancestry blocking a full assimilation with the Trinidadian society of mixed culture and on
the other, his hatred for the insensitive materialism of the West Indians. His identity is
problematised under dissimilar socio-cultural forces, which occasioned his escape into the
metropolitan centre of London for the pursuit of a writing career, but, even there he felt himself
castrated. In fact, his predicament is that of one caught in a double bind- that of an insider-
outsider, who finds no home and therefore, gropes for identity everywhere. Gordon Rohlehr
observes :
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As an East Indian, he failed to come to terms with the Negro- Creole world in Trinidad,
or with the East Indian world in Trinidad, or with the grayness of English life, or with life
in India itself, where he went in search of his roots.
6

The Mystic Masseur presents in Ganesh an intensity of desire to change his social reality
from the initial stage. Ganesh is determined to bring about a change in the life and confidently
tells Leela that really great things are going to happen in Fuente Grove in future. His anxiety for
appropriation of the British culture through language is another facet of his aspiration for social
upward mobility. The following words of Ganesh to his wife and squalid reality of their life have
a deeper significance. Ganesh wants to learn and practice better speech than his own dialect in
which he speaks:
Leela, is a high time we realize that we living in a British country and I think we should
not be shame to talk the people language good. Leela was squatting at the kitchen chulla,
coaxing a fire from dry mango twigs. Her eyes were red and watery from the smoke.
7

Secondly, in Ganeshs feeling of shame at using his spoken dialect in a British country
lies the seed for his final metamorphosis into the colonial mimic man at the end of the novel. The
image of Leela squatting at the kitchen chulla and cooking under difficult conditions is
emblematic of the Trinidadian reality from which he seeks to escape.
Naipaul satirizes the Trinidadian society, the setting of Ganeshs success, rather intensely
through such specific pictures as Ganeshs father cursing Port of Spain in eloquent Hindi, Mr.
Stewart dressed as a mendicant, the Negro woman with white powder on her face, the American
serviceman providing gum to the children of Fuente Grove, where they have come for spiritual
advice and, Leelas fridge packed with Coca-Cola and visible from road. These scenes dramatize
the confusion of origins and loyalties, customs, and aspirations. A sense of dislocation is noticed
here. There is a perennial quest for identity and a struggle to maintain relation with both the
cultures.
Ganesh Ramsumair of The Mystic Masseur may be in many ways different from Mohan
Biswas of A House for Mr. Biswas, Willie Chandran in Half a Life and Ralph Singh of the
Mimic Men but, essentially, they are all one as they present different aspects of the same
mindset. Naipaul once said that all of his works are part of one big book.
All his major protagonists suffer the tragedy of displacement and separation from their
land. Separation from land leads to disorder and the forlorn spirit's search for land is associated
with its search for order. There is a host of writers whose theme revolves around the anguish and
pain of diaspora but what makes Naipaul truly great is his sensibility. His fictional characters are
moved not as much by anguish as by anxiety. Naipaul's work derives its strength from his first
hand experience of life. Though, he is dispossessed and disillusioned but goes much beyond his
personal pain and anxiety. In fact, through his protagonists, he symbolises the agony of diasporic
and rootless people leading a nomadic life on this Earth. Indubitably, the loss of identity and a
quest to regain it happens to be the leit motif of Naipauls works.The Swedish academy has very
correctly recognized this dimension of his literary acumen in its Nobel citation:
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His authority as a narrator is grounded in his memory of what others have forgotten, the history
of the vanquished.
52

WORKS CITED
1. Naipaul, V.S. The Overcrowded Barracoon (Harmondsworth: Penguin Books,(1981),
p.37.
2. Sarkar, Subhash VS Naipauls Fiction:A Story of self division and Impact of Ancestral
Memory in colonial Society, V.S Naipaul: Critical Essays Vol. I Ed.Mohit K.Ray (New
Delhi: Atlantic, 2002), p.165.
3. Nobel Lecture, December 7, 2001. Naipaul, VS. Nobel Lecture, December 7, 2001.
Official Website www.nobel.se/literature/2011/Naipaul-lecture.html.
4. Naipaul, V.S. The Mystic Masseur (London: Andre Deutsch, 1957), p.131.
5. Rohlehr Gorden The Language of the people, Critics on Caribbean Literature,
ed.Edward Baugh, p.155.
6. Rohlehr Gorden, The Ironic Approach- the Novels of V.S. Naipaul, Critical
Perspective on VS Naipaul, Ed. Robert D Hamner (London:Heinemann,1979),p.179.
7. Naipaul, V.S. The Mystic Masseur (London: Andre Deutsch, 1957), p.71.
8. Swedish Academys Nobel Citation. Thursday, October 11, 2001. Available at
website:http://nobelprize.org/nobel_prize/literature/laureates/2001/press.html




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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
THE MARKET STRUCTURE, MARKETING
PRACTICES AND PATTERNS OF VEGETABLE MARKET: A MICRO
LEVEL STUDY

JABEEN ARA BEGUM*

*Ph.D Research Scholar (Part-time), Department of Economics,
The New College (Autonomous), Chennai-14.

ABSTRACT

Marketing of vegetables is quite complex and risky due to the perishable nature of
the produce, seasonal production and bulkiness. The spectrum of prices from
producer to consumer, which is an outcome of demand and supply of transactions
between various intermediaries at different levels in the marketing system, is also
unique for vegetables. Moreover, the marketing arrangements at different stages
also play an important role in price levels at various stages viz. from farm gate to the
ultimate user. These features make the marketing system of vegetables to differ from
other agricultural commodities, particularly in providing time, form and space
utilities. While the market infrastructure is better developed for food grains, fruits
and vegetables markets are not that well developed and markets are congested and
unhygienic. The markets in many of the major cities in some states are not covered
by market legislation and continue to function under civic body as well as private
ownership.
_____________________________________________________________________________________

1.1 INTRODUCTION
The producers share in consumers rupee is comparatively lower for perishable crops. This
could be due to a variety of factors such as number of intermediaries, cost of various market
functions rendered by intermediaries, spread of location of the producers and consumers. Further
the degree of perishability, variety and quality, and various market imperfections, market
infrastructure etc also influence the marketing costs and price levels. Producers share was found
to be relatively high in areas where better infrastructure facilities for marketing were made
available. Some studies have cited examples of an improvement in producers share over a
period of time due to improvement in market infrastructure, such as cold storage facilities. On
the other hand the low share of consumers rupee for potato growers in different parts of the
country may be due to high margins of intermediaries. Producers share was also often varies
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during peak and lean seasons. Substantial variation in producers share in consumers rupee for
fruits and vegetables was also observed even in the same location itself.
In many locations for fresh vegetables regulated markets are the first destinations.
Growers send their produce daily to these markets for sale and traders and retailers buy them for
the consumers. Vegetables arrive from far off places follow different marketing systems. It was
also found that the regulated markets benefited farmers in proportion to the effectiveness with
which market committees supervise the trading of vegetable marketing. These findings advocate
effective implementation of regulatory measures, improved market infrastructure, and
dissemination of market information that could not only improve the marketing of vegetables but
also the share of producers in consumers rupee.
Agricultural marketing continued to be plagued by many market imperfections such as
inadequate infrastructure, lack of scientific grading system, defective weightiest and so on. The
basic objective of regulating the marketing of agricultural products was to bring both producer
and buyer/trader closer and to the same level of advantage. This would help reduce middlemen
and associated costs and margins. Moreover regulated markets are the platform for both
producers and buyers to represent their grievances and discuss matters of mutual interest. Market
legislation in India covers almost all agricultural commodities. Since regulation of markets is a
state subject, the regulatory measures adopted by various states differ though marginally. There
are as many as 4000 regulated markets in the country dealing with vegetables trade. While the
market regulation has been successful in some areas to certain extent, it has not often achieved
the objectives to the desired level. A large number of wholesale markets are yet to be brought
under the purview of market legislation. Regulating markets are only the first step to improve the
marketing efficiency. Past studies on regulated markets in various parts of the country brought
out various inadequacies in the system in terms of their functioning, infrastructure, price realized
by farmers and so on. Grading, providing price information at different markets etc. have been
neglected by few regulated markets. Few other problems identified are lack of standardized price
quotations, disparities in rate of market fees. In some cases it was found that the traders and not
the farmers obtained the benefit of the regulated markets. In few regulated markets there were
very few traders and hence enough healthy competition was not there and eventually low prices
were realised by the farmers. Even in more competitive regulated markets, the markets were
often not stable. All these evidences suggest that there is large scope for improving various
aspects of vegetables marketing in the country.
1.2 YEAR OF ESTABLISHMENT AND SIZE OF MARKET YARD
In Chennai, there is no regulated wholesale market for vegetables. There are two
wholesale markets namely Koyambedu Vegetable Wholesale Market and Ambattur Farmer's
Market in Chennai City. Metropolitan Development Authority promoted the Koyambedu
Vegetable Wholesale Market in 1996. The Ambattur Farmer's Market is relatively new and small
market and was established only in the year 2000 as show in Table 1.1.


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TABLE 1.1
YEAR OF ESTABLISHMENT, SIZE OF MARKET YARD AND LICENSED TRADERS
IN CHENNAI DISTRICT VEGETABLE MARKET
Market Year of
Establishment
Plot size
(Sq. Yds)
Number of licensed traders

Office
Staff
Commission
Agent
Co-
op.
Soc.
Others
Koyambedu
Market
1996 77
acres
- - - -
Ambattur
Market
2000 0.86
acres
- - - -
Source: Horticultural Statistics, Department of Horticulture, Chennai and http://www.
Postharvestindia.com/indhrvst/fruits.htm
In Chennai the Market Management Committee headed by the Chief Administrative
Officer of the Chennai Metropolitan Development Authority (CMDA) controls the Koyambedu
Vegetable Wholesale Market. The members of the Committee include the Commissioner of
Chennai Corporation, the Chief Planner, Director of Agricultural Marketing, MLA of the
constituency where the market is located, and three wholesale traders from the market. The
committee is selected for a 3-year term. At present the staffs of CMDA are deputed to the
Committee and their salary is being paid by the CMDA. There are three types of staffs working
in the Management Committee, namely technical, non-technical and ministerial. Apart from
these there are driver, typists etc. working on daily wage basis. The Amabattur Farmer's market
is under the control of the Secretary, Kancheepuram Market Committee. The number of persons
working at the market yard includes one agricultural officer, one assistant, a sweeper and 3
security staff on shift basis.
1.3 MARKET INFRASTRUCTURE AND MARKETING PATTERNS
Various infrastructure facilities are available in the selected market yards can be briefly
discussed as follows. There are 2344 shops in the Chennai District Koyambedu Vegetable
Wholesale Market out of this 456 deal with fruits, 1468 stalls with vegetables, 300 stalls with
flowers and the rest are lying idle. Merchants own these shops and some are rented out to small
traders. Apart from the stalls there are internal roads, service shops and restaurants. The traders
operating in these stalls have to obtain license from the committee by paying a prescribed fee of
Rs.150 per year and a renewal license fee of Rs.75 per year for three years. Besides maintenance
fee of Re.1 per square feet per month is also collected from the traders. There are six vegetable
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go-downs and one cold storage. There is a bus stand for transportation of commodities, pay and
use sanitary facilities, night shelters for workers. The telephone booth in the market has telex, fax
and STD facilities, and a fire station outside the market yard. There is a cooperative bank branch
as well as a branch of nationalized commercial bank besides a post office.
In the Amabattur Farmer's market market there are 100 shops each measuring 10' x 8' and
the producer farmers are allotted these shops on first come serve basis. No market fee is levied
on them. The market is under the control of Kancheepuram Market Committee. The salient
features of this market are: it is situated on the Chennai-Thirupathy highway, it is equipped with
telephone facilities, there are stalls run by self-help groups, canteen facilities and facilities for
waste disposals which is converted into bio-fertilizers. Weighing machines are provided to the
farmers free of cost, and there are electricity and water facilities. There is no license or market
fee or entry fee and cost details are not available. Therefore, it could be seen clearly from above
discussion that the market management committee headed by the chief administrative officer of
the Chennai Metropolitan Development Authority (CMDA) and the Kancheepuram market
committee respectively controls the KFVWM and the AUS markets in Chennai District. The
salient features of the KFVWM market which is situated on the Chennai- Thirupathy highway,
are stalls equipped with telephone facilities, stalls run by self-help groups, vehicle parking
facility, canteen facilities and facilities for waste disposals. Services of weighing machines have
been provided to the farmer sellers free of cost. In AUS market, the facilities provided include
weighing machines and price display boards. The association of traders in fruits and vegetables
determines the market charges in the KFVWM. The present the rate of commission charged in
this market is 6 per cent for vegetables and 10 per cent for fruits.
1.3.1 MONTHLY SALES AND ARRIVAL OF SELECTED VEGETABLES IN CHENNAI
DISTRICT KOYAMBEDU MARKET
The monthly sales/arrival pattern of selected vegetables in Chennai District Koyembedu
Vegetable market, in the vegetables sales is highly seasonal and this is accompanied with large
fluctuation in their prices. The seasonality in the arrival/sale of the selected vegetables was
examined with the help of monthly seasonal index. This index is arrived by expressing monthly
sale/arrival of a given month to annual average sale/arrival per month expressed in percentage
terms.
Tables 1.2, 1.3 and 1.4, indicate monthly sale and arrival of selected vegetables in
Chennai Disrict Koyambedu Market. It could be noted that in Chennai District Koyembedu
Vegetable market, the sale of vegetables such as brinjal and lady's finger was evenly spread over
rest of the period except December to March For potato and onion, it is during May, J une and to
certain extent J uly when the sales are relatively high as shown by the monthly seasonal indices
(in the range of 129.5 to 202.2). Vegetables such as cabbage and tomato have also show more or
less the same pattern. In general, therefore, in the Chennai markets, May to J uly shows higher
sales and the sale is almost evenly distributed for the rest of the year.


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TABLE 1.2
AVERAGE MONTHLY SALE/ARRIVAL OF BRINJAL AND LADY'S FINGER IN
CHENNAI DISTRICT KOYEMBEDU VEGETABLE MARKET
(QUANTITY IN KGS.)
Month Brinjal Lady's Finger
Sale/
Arrival
Seasonal
Index
Percent
Share
Sale/
Arrival

Seasonal
Index

Percent
Share
J an 8724 44.6 3.7 6791 42.6 3.9
Feb 10263 52.5 4.4 8843 55.5 5.0
March 10596 54.2 4.5 13117 82.3 7.5
April 18730 95.8 8.0 14321 89.8 8.2
May 32739 167.5 14.0 23093 144.9 13.2
J une 35809 183.2 15.3 18859 118.3 10.8
J uly 25995 133.0 11.1 15726 98.7 9.0
Aug 22369 114.5 9.5 18443 115.7 10.5
Sep 17806 91.1 7.6 19742 123.9 11.3
Oct 16587 84.9 7.1 16663 104.5 9.5
Nov 20878 106.8 8.9 8.9 19737 123.8 11.3
Dec 14036 71.8 6.0 11930 74.8 6.8
Average 19544 100 100 15940 100.0 100
Source: Computed



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TABLE 1.3
AVERAGE MONTHLY SALE/ARRIVAL OF POTATO AND ONION IN CHENNAI
DISTRICT KOYEMBEDU VEGETABLE MARKET
(QUANTITY IN KGS.)
Month Potato Onion
Sale/
Arrival
Seasonal
Index
Percent
Share
Sale/
Arrival

Seasonal
Index

Percent
Share
J an 2639 67.7 5.6 4370 50.9 4.6
Feb 2767 70.9 5.9 4002 46.6 4.2
March 2298 58.9 4.9 4612 53.7 4.9
April 3869 99.2 8.3 8074 94.0 8.5
May 7480 191.8 16.0 17368 202.2 18.4
J une 6390 163.8 13.7 14810 172.4 15.7
J uly 5052 129.5 10.8 12555 146.1 13.3
Aug 3688 94.6 7.9 9829 114.4 10.4
Sep 3030 77.7 6.5 5382 62.6 5.7
Oct 3739 95.9 8.0 7427 86.4 7.9
Nov 3209 82.3 6.9 6074 70.7 6.4
Dec 2642 67.7 5.6 4547 52.9 4.8
Average 3900 100.0 100 8591 100.0 100
Source: Computed


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TABLE 1.4
AVERAGE MONTHLY SALE/ARRIVAL OF CABBAGE AND TOMATO IN CHENNAI
KOYEMBEDU VEGETABLE MARKET
(QUANTITY IN KGS.)
Month Cabbage Tomato
Sale/
Arrival
Seasonal
Index
Percent
Share
Sale/
Arrival

Seasonal
Index

Percent
Share
J an 2639 67.7 5.6 4370 50.9 4.6
Feb 2767 70.9 5.9 4002 46.6 4.2
March 2298 58.9 4.9 4612 53.7 4.9
April 3869 99.2 8.3 8074 94.0 8.5
May 7480 191.8 16.0 17368 202.2 18.4
J une 6390 163.8 13.7 14810 172.4 15.7
J uly 5052 129.5 10.8 12555 146.1 13.3
Aug 3688 94.6 7.9 9829 114.4 10.4
Sep 3030 77.7 6.5 5382 62.6 5.7
Oct 3739 95.9 8.0 7427 86.4 7.9
Nov 3209 82.3 6.9 6074 70.7 6.4
Dec 2642 67.7 5.6 4547 52.9 4.8
Average 3900 100.0 100 8591 100.0 100
Source: Computed
It could be seen clealy from above discussion that Chennai District Koyambedu
Vegetable Market for all the selected vegetables viz., Brinjal, tomato, onion, cabbage, Ladys
Finger and Potato high sale were invariably recorded during May to J uly. Hence, the findings of
the monthly sale and arrival of selected vegetables in Chennai Koyambedu Vegetable Market
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indicate that the selected vegetables have increased significantly during May to J uly. This prove
the First hypothesis is that the Monthly sales and arrival of selected vegetables in Chennai
District Koyambedu Vegetable Market has increased significantly during May to J uly as shown
in the value of Seasonal Index.
1.4 CONCLUSION
It could be concluded from above discussion that the Chennai markets vegetables such as
brinjal, lady's finger, onion, potato, cabbage, cauliflower and tomato. The market management
committee headed by the chief administrative officer of the Chennai Metropolitan Development
Authority (CMDA) and the Kancheepuram market committee respectively controls the KFVWM
in Chennai. Various infrastructure facilities available The salient features of the KFVWM
market which is situated on the Chennai- Thirupathy highway, are stalls equipped with telephone
facilities, stalls run by self-help groups, vehicle parking facility, canteen facilities and facilities
for waste disposals. Services of weighing machines have been provided to the farmer sellers free
of cost. The association of traders in fruits and vegetables determines the market charges in the
KFVWM. The present the rate of commission charged in this market is 6 percent for vegetables
and 10 percent for fruits. In the Chennai markets for all the selected vegetables high sales were
invariably recorded during May to J uly.
REFERENCES
1. Acharya, S.S. 1998, Agricultural Marketing in India: Some Facts and Emerging Issues,
Keynote Paper, Indian J ournal of Agricultural Economics, Vol. 53, No. 3, J uly-
September.
2. Acharya, S.S. 2000, Subsidies in Indian Agriculture and Their Beneficiaries,
Agricultural Situation in India, Vol. LXII, No. 5, Special Number, August.
3. Angela Maria Hau., Matthias Von Oppen., 2002, Market Efficiency of Fruits and
vegetables in Northern Thailand. Agric. Econ. and Social Sci. in the Tropics and
Subtropics, Uni. Of Hohenheim.
4. Anil Kumar and Arora., 1999, Post harvest management of Vegetables in Uttar Pradesh
hills. Ind. J . Agric. Mktg, 13 (2) : 6-14.
5. Ayieko, M. W., Tschirley, D. L. and Mathenge, M. W., 2005, Fresh fruit and vegetable
consumption patterns and supply chain systems in urban kenya: implications for policy
and investment priorities. Development Policy Rev., 28 (7) : 212-230.
6. Bridge. D.S., 1996, Supply chain management for fresh vegetables: The key success
factors from the producers point of view. Farm Management, 9 (7):357-364.
7. Devaraja., 1998, channels and price spread in potato marketing- A case study in Belgaum
District. Agric. Mktg, 41 (1) : 19-21.
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8. Harris, B., 1982. The marketed surplus of paddy in north Arcot district, Tamil Nadu: a
micro-level causal model. Indian J . Agric. Economics. XXXVII(2): 145-158.
9. Kaul, G.L, Horticulture in India: Production, Marketing and Processing, Indian J ournal of
Agricultural Economics, 52,3, 1997




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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
WORKPLACE SAFETY AND HEALTH
LEGISLATIONS IN THE LEATHER INDUSTRY

MS. GARIMA SRIVASTAVA*

*Lecturer, Department of MBA,
Geeta Institute of Management and Technology,
Kanipla, Kurukshetra, India.

ABSTRACT

An effective regulatory and legal framework is indispensable for the proper and
sustained growth of the company. In rapidly changing national and global business
environment, it has become necessary that regulation of corporate entities is in tune
with the emerging economic trends. Further, due to continuous increase in the
complexities of business operation, the forms of corporate organizations are
constantly changing. Various laws have been introduced and amended, from time to
time, to bring more transparency and accountability in the provisions for tanneries.
The laws have been simplified so that they are amenable to clear interpretation and
provide a framework that would facilitate faster economic growth. This paper
presents various provisions of U.P. Factories Manual which protect the interests of
the labour and other investors and stakeholders.

KEYWORDS: Regulatory framework, Occupational Safety and Health, Working
conditions.
__________________________________________________________________________
1.1) INTRODUCTION
Safety and health occupy an

important position in the policy framework of India's
Constitution. To give effect to the directive principles of the Constitution, the Government
of India has enacted several laws on safety and health, which are to be enforced by the
Central and State Governments. The directive principles impose equal pay for equal work,
provision of just and humane conditions of work, and a wages which allow a decent living to
all workers. Safety and health have also been incorporated in

the National Five-Year
Plans.
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The evolution of the approach towards workers' health and working conditions is
reflected in the topics in the subsequent Plans. Before the sixth Five-Year Plan (1980-85), the
main emphasis was on the protection of workers against accidents. In the sixth Plan, protection
against occupational diseases was added, prompted by the development of the chemical and
various process industries. Environmental conservation and protection was also mentioned in
the sixth Plan. The seventh Five-Year Plan (1985-90) further emphasized the importance of
industrial safety which was inspired by the accident at the Union Carbide Plant in Bhopal
in 1982. However, promotional services were restricted to surveys, research, training in
hazard identification and inspection, without any emphasis on how to attain improvements at
the workplace. Actions in these Plans were mainly of a legislative and academic nature.
Eighth Five Year Plan India runs through the period from 1992 to1997 with the main aim
of attaining objectives like modernization of the industrial sector, rise in the employment level,
poverty reduction, and self-reliance on domestic resources. It focuses on to promote social
welfare measures like improved healthcare, sanitation, communication and provision for
extensive education facilities at all levels. The Tenth Five Year Plan India (2002-2007) aims to
transform the country into the fastest growing economy of the world and targets an annual
economic growth of 10%. This was decided after India registered a 7% GDP growth consistently
over the last decade. It aims at cleaning all the main rivers between 2007 and 2012 and Ensuring
persistent availability of pure drinking water in the rural areas of India, even in the remote parts.
Eleventh five year plan provides provision of clean drinking water, sanitation and a clean
environment that are vital to improve the health of our people, to reduce incidence of diseases
and deaths.
The Ministry of Labour, Government of India and Labour Departments of the State
and Union Territories are responsible for the occupational safety and health of workers. The
Industrial Safety and Health Branch of the Ministry discharges the overall functions relating
to policy decisions and laying down guidelines for countrywide adoption, as labor is a
concurrent subject in the Constitution. As most of the laws on safety and health are Central
Government legislation, the Ministry performs the important function of piloting the bills
through Parliament after inter ministerial consultations and consultations with the State
Governments and organizations of employers and workers. Liaison with the International
Labor Organization and other countries is carried out by the Ministry. Co-ordination at
national level is undertaken by the Ministry by periodically convening the State Labor
Ministers Conference and State Labor Secretaries Conference, in which policy matters and
issues on uniformity in labor laws are discussed.
1.2) OBJECTIVES OF THE STUDY
1. To study the various legal measures proposed and undertaken by the Government to
provide occupational safety and health to the labours in the Industry.
2. To search out the reasons that are responsible for slow implementation of policies and
laws made for the safety and welfare of the labour.

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1.3) RESEARCH METHODOLOGY:
This is descriptive types of study and we have performed surveys to obtain data through
observation and direct communication with the correspondents (labours in the tannery). In this
study the following methods of collection of primary data have been adopted.
a. Observation Method: For this purpose a checklist has been designed which contains a
list of safety measures to be taken in the tannery. This checklist helps to carry out a
workplace inspection. Before ticking the respective boxes we have also consulted
with the supervisors and workers in the respective areas.
b. Personal Interview Method: This method of data collection involves presentation of
oral-verbal stimuli and reply in terms of oral-verbal responses. Personal interviews
have been taken up as the situation demanded. The answers have been recorded in
the form of remarks infront of the safety checklist questions.
1.4) LIMITATIONS OF THE STUDY
1. It was not possible to include all types of tanneries in this study because of paucity of
time, but the studied tanneries are important ones and representatives of the Leather
industry.
2. In spite of all efforts, it was difficult to get detailed insight about the topic as concept is
mainly concerned with the strategy of the tanneries. But the management executives were
not able to provide ample time for the research work.
3. To the extent, all the tanneries were not approachable and accessible.
1.5) SAFETY LEGISLATIONS IN THE LEATHER INDUSTRY
Working conditions and the nature of employment tend to have major repercussions on
the health of a workman. The concept of Occupational health has evolved from work-related
ailments. Occupational health broadly means any injury, impairment or disease affecting a
worker or employee during his course of employment. Further, it not only deals with work-
related disorders but also encompasses all factors that affect community health within it. The
inadequate surveillance of employees is the most important reason for increased prevalence of
work related and other non-communicable life style diseases at work place.
With the changing job patterns, working relationships, the rise in self-employment,
outsourcing of work, etc. there has been a problem in the management of occupational safety and
health risks. Nevertheless particular attention needs to be paid to the health and safety of workers
in hazardous occupations and especially the migrant workers and other vulnerable persons.
Work related hazards and occupational diseases in small-scale industries and agriculture are
likely to increase as the occupational safety and health services are out of reach in these
occupations. However, with increasing Public Interest Litigations (PILs), Proactive legislations
and continual struggle by environmental activists, the awareness with respect to occupational
health concerns are gaining more ground.
OCCUPATIONAL HEALTH LAWS The Factories Act, 1948, the Mines Act, 1952, The
Dock Workers (Safety, Health & Welfare) Act, 1986 are some of the laws, which contain
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provisions regulating the health of workers in an establishment. Whereas the Employees State
Insurance Act, 1948 and the Workmens Compensation Act, 1923 are compensatory in nature.
The legislations on working conditions are provided in table below. To enable a unified
approach, a proposal for enactment of a General Enabling Act is being considered.
TABLE 1.1: REGULATIONS RELATED TO OCCUPATIONAL HEALTH AND
SAFETY IN INDIA
Year
Law, Decree or
Regulation
Objectives
Enforcement
1884 Explosives Act
Legislation pertaining to
hazardous substances
A multiplicity of legislative
approaches, with different
administrative and
enforcement arrangement
1934 Petroleum Act
Legislation concerning
hazardous activities

1968
Insecticides Act

1971
Insecticides Rules

1989 Manufacture, Storage and
Import of Hazardous

Chemicals Rules under the

Environment (Protection)

Act 1986
1910 Indian Electricity Act
1932 Indian Boilers Act
1971 Radiological Protection
Rules
1983 Dangerous Machines
(Regulation) Act

1948 Factories Act Legislation on working
conditions
Labor departments of Central
State Governments
1951
Plantations Labor Act


1952
Mines Act

1986 Dock Workers (Safety,
Health and Welfare) Act


Source: Ory FG and Budorf A : Strategies and methods to promote occupational health in low-
income countries.
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The Factories Act, 1948 was enacted with the object of protecting workers from
subjecting to unduly long hours of bodily strain or manual labour. It lays down that employees
should work in healthy and sanitary conditions so far as the manufacturing will allow and that
precautions should be taken for their safety and for the prevention of accidents. Therefore U.P.
Factories manual, 1950 has been studied for the purpose of the study which is implemented in
Leather Industries.
ENFORCEMENT OF THE FACTORIES ACT, 1948
This act has following objectives-
1. It provides workers with a reasonable protection with regard to machinery, pressure
vessels, dangerous fumes and gases.
2. It also provides guidelines for health and safety on the plant including ventilation,
illumination, safe buildings and protection in case of fire.
3. It safeguards, that workers have access to safe drinking water and washing facilities.
4. It also regulates working hours, annual leave and wages.
5. The legislation also deals with on-site emergency plans and requires a detailed disaster
plan.
6. The employer is specifically required to appoint qualified supervisors and arrange for
measures for health monitoring.
7. The legislation provides for workers' participation in safety management through the
constitution of Safety and Health Committees/Councils. Despite this legislation,
implementation lags behind because of the complexity of the regulation.
THE CONSTITUTIONAL ASPECTS OF EMPLOYEES RIGHT TO HEALTH
Article 21 of the Indian Constitution guarantees the protection of life and personal liberty
of a person. Various Supreme Court judgments have, under this "right to life" upheld the right to
employees health. The Indian Constitution has shown notable concern to workmen in factories
and industries as envisaged in its Preamble and the Directive Principles of State Policy. The
Directive Principles of State Policy provide:
a) For securing the health and strength of workers, men and women,
b) That the tender age of children is not abused,
c) That citizens are not forced by economic necessity to enter avocations unsuited to their age or
strength,
d) J ust and humane conditions of work and maternity relief are provided and,
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e) That the Government shall take steps, by suitable legislation or in any other way, to secure the
participation of workers in the management of undertakings, establishments or other
organizations engaged in any industry.
Hence, the Government, Central or State, while drafting policies for the safety and health of
workers must keep in mind the Directive Principles in accordance with the nature of employment
and must be in consultation with workers' welfare organisations, environmental activists, etc.
The overall responsibility relating to safety health of the workers is of the
Industrial Safety and Health Branch of the Ministry of Labor. The Directorate-General
Factory Advice Service and Labor institutes, in the technical office attached to the
Ministry of Labor located in Bombay, attends to matters relating to the safety and health of
workers employed in factories, i.e. manufacturing industries and ports and docks. Besides, the
Directorate General, on behalf of the Ministry, carries out the important function of provid-
ing training for Factory Inspectors and co-ordinating training outside the country.
Facilities at these institutes are expected to provide education and training and to conduct
research on the health and safety of industrial workers.
At the State level, the departments of Labor through the Inspectorate of
Factories and Industrial Health Inspection Service carry out surveys within the industrial
plants, and enforce and monitor the legal standards. The safety and health provisions under
the Factories Act, 1948, are enforced by the Factories Inspectorates in 31 States and Union
Territories. The Act gives workers a weekly day off, fourteen days' annual leave, bans child
labor and restricts the employment of young persons between the ages of 14 and 18. The
State Factories Inspectorates also enforce requirements under some of the allied Acts, such as
the Payment of Wages Act, the Maternity Benefit Act and the Minimum Wages Act. The
Directorate-General Factory Advice Service and Labor Institutes, being the technical
organization of the Ministry, liaises with the State Factories Inspectorate and advises them
on the administration of the Factories Act 1948, the infrastructural facilities required for the
purpose and issuance of U.P. Factories Rules,1950. These Rules are contained in Chapter IV
and Chapter V of the Act. It has been described as under.
CHAPTER IV-A: SECTION 40 OF THE ACT DESCRIBES THE RULE NO.63 WHICH
STATES THE PROVISIONS RELATING TO HAZARDOUS PROCESSES IN
FACTORIES
RULE NO.63-A. SITE APPRAISAL COMMITTEE
(1) Constitution-This provision governs the functioning of the Site Appraisal Committee.
The State Government may constitute or reconstitute the committee and when necessary.
The State Government may appoint a senior official of the Factories Inspectors to
preferably with qualification in Chemical Engineering to be Secretary of the Committee.
The State Government may co-opt the following persons as members of the Committee.
a. A representative of the Fire Service Organization of the State Government.
b. A representative of the Department of Industries of the State Government.
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c. A representative of the Director General of Factory Advice Service and Labour
Institute, Mumbai.
(2) FUNCTIONS OF THE COMMITTEE
a. The Secretary shall arrange to register the applications received for appraisal of
site in a separate register and acknowledge the same within a period of 7 days.
b. The Secretary shall fix up meeting in such a manner that all the application
received and registered are referred to the Committee within a period of one
month from the date of there receipt.
c. The Committee may adopt a procedure for its working keeping in view the need
for expeditious disposal of applications.
d. The Committee Shall examine the application for appraisal of a site with
reference to the prohibitions and restrictions on the location of industry and the
carrying on the processes and operations in different areas as per the provisions of
Rule 5 of the Environment (protection) Rules, 1986 framed under the
Environment Protection Act, 1986.
e. The Committee may call for documents examine experts, inspect the site, if
necessary and take other steps for formulating its view in regard to the suitability
of the site.
f. Wherever the proposed site requires clearance by the Ministry of Industry or the
Ministry of Environment and Forests of the Government of India site appraisal
will be considered by the Committee only after such clearance has been received.
g. No business shall be transacted to in any meeting unless at least five members are
present.
h. Traveling Allowance- A non-official member of the committee shall be entitled to
draw traveling and daily allowances for any journey performed by him in
connection with his duties as member of the Committee at the rates and subject to
the conditions laid down in Rule 20 of Financial Handbook, Volume III.
It also gives a layout of the form of application to be given to the Committee. This
layout contains information such as name and address. The information should be
supplemented by enclosing copies of documents, maps or blue print etc. wherever necessary. It
contains information such as Name and address of the applicant, Site ownership Date, Site Plan,
Project Report, Organizational structure for the proposed manufacturing unit/factory,
Metrological date relating to the site, Communication Links, Manufacturing Process
Information, Information on Hazardous Materials, Information of Dispersal/disposal of Wastes
and Pollutants, Process Hazards Information, Information of proposed safety and occupational
health measures, Information on emergency preparedness or any other relevant information
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RULE NO. 63-B. SECTIONS 7-A (3), 41-B(2) AND 112-HEALTH AND SAFETY
POLICY
1. The occupier of every factory, except as provided for in sub-rule (2) shall prepare a
written statement of his policy in respect of health and safety of workers at work.
2. All factories-
a) Covered under Section 2(m)(i) but employing less than 50 workers.
b) Covered under Section 2(m)(ii) but employing less than 100 workers are exempted
from requirements of Sub-rule (1):
Provided that they are not covered under the First Schedule under Section 2(cb) or
carrying out processes or operations declared to be dangerous under Section 87 of the
Act.
3. The policy should specify the following:
a) arrangements for involving the workers;
b) intention of taking into account the health and safety performance of
individuals at different levels while considering their career advancement;
c) the responsibility of the contractors, sub-contractors, transporters and other
agencies entering the premises;
d) a resume of health and safety performance of the factory in its Annual Report;
e) relevant techniques and methods such as safety and its risk assessment for
periodical assessment of the status on health, safety and environment and taking all
the remedial measures.
f) its intentions to integrate health and safety, in all decisions including those dealing
with purchase of plant, equipment, machinery and material as well as selection
and placement of personnel.
g) arrangements for informing, educating and training and retraining its employees at
different level and the public, wherever required.
4. A copy of the declared health and Safety Policy signed by the occupier shall be made
available to the Inspector having jurisdiction over the factory and to the Chief Inspector.
5. The policy shall be made widely known by making and displaying copies available to all
workers including contract workers, apprentices, transport workers, suppliers, etc.
6. The occupiers shall revise the Safety Policy as often as may be appropriate but it shall
necessarily be revised wherever any expansion or modification having implications on
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safety and health of persons at works is made or new substances or articles are introduced
in the manufacturing process having implications on health and safety of persons exposed
to such substances or articles.
RULE NO. 63-C. SECTIONS 41-B AND 112.-MATERIAL SAFETY DATA SHEET-
COLLECTION AND DEVELOPMENT AND DISSEMINATION OF INFORMATION
1. The occupier of every factory carrying on a hazardous process shall arrange to obtain or
develop information in the form of Material Safety Data Sheet (MSDS) in respect of every
hazardous substance or material handled in the manufacture, transportation and storage in the
factory. It shall be accessible, upon request to a worker for reference. Every such Material
Safety Data Sheet shall include the following information-
a) The identification mark used on the label.
b) Hazardous ingredients of the substance.
c) Physical and chemical characteristic of the hazardous substance.
d) The physical hazards of the hazardous substance, including the potential for fire,
explosion and reactivity.
e) The health hazard to the hazardous substance, including signs and symptoms,
exposure, and may medical condition which are generally recognized as being
aggravated by exposure to the substance;
f) The primary route or routes of entry;
g) The permissible limits of exposure prescribed in the Second Schedule under
Section 41-F of the Act, and in respect of a chemical not covered by the said
Schedule any exposure limit used or recommended by the manufacture, importer
or occupier.
h) Any generally applicable precautions for safe handling and use of the hazardous
substance, which are known including appropriate hygienic practices, protective
measures during repairs and maintenance of contaminated equipment, procedures
for clean up of spills and leaks.
i) Any generally applicable control measure, such as appropriate engineering control
works practices, or use of personal protective equipment;
j) Emergency and first-aid procedures;
k) The date of preparation of the Material Safety Data Sheet, or the last change in it;
and
l) The name, address and telephones number of the manufacturer, importer, occupier
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or other responsible party preparing or distributing the Material Safety Data Sheet,
who can provide additional information on the hazardous substance and
appropriate emergency procedure, if necessary.
2. The occupier while obtaining or developing a Material Safety Data Sheet in respect of a
hazardous substance shall ensure that the information, recorded accurately, reflects the
scientific evidence used in making the hazard determination. If he becomes newly aware of
any significant information regarding the hazard of a substance, or ways to protect against
the hazards, the new information shall be added to the Material Safety Data Sheet as soon as
practicable.
3. Every container of a hazardous substance shall be clearly labelled or marked to identify the
contents of the container, the name and address of the manufacturer or importer of the
hazardous substances, the physical and health hazards and the recommended personal
protective equipment needed to work safely with the hazardous substance.
Information contained in this material data sheet is believed to be reliable but no
representation guarantee or warranties of any kind are made as to its accuracy, suitability for a
particular application of results to be obtained from them. It is up to the manufacturer/seller to
ensure that the information contained in the material Safety data sheet is relevant to the product
manufacture/ handled or sold by him as the case may be. The Government makes no warranties
expressed or implied in respect of the adequacy of this document of any particular purpose.
RULE NO. 63-D.DISCLOSURE OF INFORMATION TO THE WORKERS
1. The occupier of a factory carrying on hazardous process shall supply to all workers the
following information in relation to handling of hazardous materials or substances in the
manufacture, transportation, storage and other processes-
a) a list of hazardous processes carried in the factory;
b) physical and health hazards arising for the exposure to or handling or substances;
c) measure taken by the occupier to ensure safety and control of physical and health
hazards;
d) measures to be taken by the workers to ensure safe handling storage and
transportation of hazardous substances;
e) personal protective equipment required to be used by workers employed in
hazardous process of dangerous operations;
f) meaning of various labels and markings used on the containers of hazardous
substances as provided under Rule 63-D;
g) signs and. symptoms likely to manifest on exposure (hazardous substances and, to
whom to report;
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h) measures to be taken by the workers in case of any spillage or leakage of
hazardous substance;
i) role of workers that is the emergency plan of the factory, in particular the
evacuation procedures;
j) any other information considered necessary, by the occupier to ensure safety and
health of workers.
2. The booklets, leaflets and the cautionary notices displayed in the factory shall be in the
language understood by the majority, of the workers and shall also be explained to them.
3. The Chief Inspector may direct the occupier to supply further information to the workers
as deemed necessary. .
RULE NO. 6-E. DISCLOSURE OF INFORMATION TO THE CHIEF INSPECTOR
1. The occupier of every factory carrying on hazardous process shall furnish, in writing to
the Chief Inspector a copy of all the information furnished to the workers.
2. A copy of compilation of Material Safety Data Sheets in respect of hazardous substances
used, produced or stored in the factory shall be furnished to the Chief Inspector and the
Local Inspector.
3. The occupier shall also furnish any other information asked for by the Chief Inspector
from time to time for the purpose of the Act and the Rules made there under.
RULE NO. 63-F. INFORMATION ON INDUSTRIAL WASTES
1. The information furnished under Rules 63-D and 63-E shall include the quantity of the
solid and liquid wastes generated per day their characteristics and the methods of
treatment such as incineration of soiled wastes, chemical and biological treatment of
liquid wastes and arrangements for their final disposal.
2. It shall also include information, on the quality and quantity of gaseous waste discharge
through the stacks or other openings and arrangements such as provisions of scrubbers,
cyclone separators, electrostatic precipitators of similar such arrangements made for
controlling pollution of the environment.
RULE NO. 63-G. REVIEW OF THE INFORMATION FURNISHED TO WORKERS
1. The occupier shall review once in every Calendar year and modify if necessary, the
information furnished under Rules 63-D, and 63-E to the workers and the Chief
Inspector.
2. In the event of any change in the process or operations or methods of work or when any
new substance is introduced in the process or in the event of a serious accident taking
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place the information so furnished shall be reviewed and modified to the extent
necessary.
RULE NO. 63-H. CONFIDENTIALITY OF INFORMATION
1. The occupier of a factory carrying on a hazardous process shall disclose all information
needed for protecting safety and health of the workers to his workers and Chief Inspector.
The Chief Inspector shall pass an order on the representation after giving an opportunity
to the occupier of being heard.
2. An occupier aggrieved by the order of the Chief Inspector may prefer an appeal to the
State Government within a period of 30 days and the State Government may after giving
an opportunity to the occupier of being heard shall pass order and the order of the State
Government shall be final.
RULE NO. 63-I. SECTION 41-B, 41-C AND 112 -MEDICAL EXAMINATION
1. Workers employed in a hazardous process shall be medically examined by qualified
medical practitioner, hereinafter referred to a Factory, Medical Officer, in the following
manner-
a) once before employment, to ascertain physical fitness of the person to do a
particular job;
b) once in a period of 6 months, to ascertain the health status of all the worker in
respect of occupational health hazards to which they are exposed, and at 11 shorter
interval in respect of a worker in whose case the Factory Medical Officer is of the
opinion that it is necessary to do so;
c) The detail of pre-employment and periodical medical examinations carried out as
aforesaid shall be recorded in the Health Register in Form 27.
2. Any finding of the Factory Medical Officer revealing any abnormality or unsuitability of
any person employed in the process shall be reported immediately to the Certifying
Surgeon who shall in turn examine the concerned worker and communicate his findings
to the occupier within 30 days. If the Certifying Surgeon is of the opinion that the worker
so examined is required to be taken away from the process for health protection, he will
direct the occupier accordingly, who shall not employ the said worker in the same
process. However, the worker so taken away shall be provided with alternative placement
unless he is in the opinion of the Certifying Surgeon full incapacitated in which case the
worker affected shall be suitably rehabilitated.
3. A Certifying Surgeon on his own motion or a reference for an Inspector may conduct
medical examination of a worker to ascertain the suitability of his employment in a
hazardous process or for ascertaining his health status. The opinion of the Certifying
Surgeon in such a case shall be final. The requisite fee for this medical examination shall
be paid by the occupier.
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CHAPTER V: SECTION 42 OF THE ACT PROVIDES RULE NO. 64 RELATING TO
WASHING FACILITIES IN THE FACTORIES
RULE NO.64: WASHING FACILITIES: There shall be provided and maintained in every
factory for the use of the workers employed ,adequate and suitable facilities for washing, which
shall include soap, where the work to be done is dirty and dangerous involving contact with lead,
tar, etc. The facilities shall be conveniently accessible and shall be kept in a clean and orderly
condition. The washing facilities shall include a trough with taps or jets at intervals of not less
than two feet, washbasins with taps attached, taps on stand-pipes, showers controlled by taps,
circular troughs of the fountain type, provided that the Inspector may, having regard to the needs
and habits of the workers, fix the proportion in which the aforementioned types of facilities shall
be installed.
If female workers are employed, separate washing facilities shall be provided and so
enclosed or screened that the interiors are not visible from any place, where persons of the other
sex work or pass. The entrance to such facilities shall bear conspicuous notice in the language
understood by the majority of the workers "For women only" and shall also be indicated
pictorially.
SECTION 43: THIS SECTION OF THE ACT PROVIDES RULE NO. 65 RELATING TO
FACILITIES FOR STORING CLOTHES
RULE NO. 65-FACILITIES FOR STORING CLOTHES
All Engineering Workshops, Iron and Steel Works, Chemical Factories, Oil Mills and
Motor Garages, covered by the Act shall provide facilities for storing clothing not used during
working hours. Such facilities shall include the provisions of separate rooms, pegs, lockers or
such other arrangements for drying of wet clothes as may be approved by the Chief Inspector.
SECTION 45(1): THIS SECTION OF THE ACT PROVIDES RULE NO.66 RELATING
TO FIRST AID APPLIANCES
RULE NO. 66- FIRST AID APPLIANCE
The first aid boxes or cupboards shall be distinctively marked with a red cross on a white
ground and shall contain Twelve small sterilized dressings, Six medium size sterilized dressings,
Six large size sterilized dressings, Six large size sterilized burn dressings, Six (12 oz.) packets
sterilized cotton wool, One (2 oz.) bottle containing a 2 per cent alcoholic solution of iodine, One
(2 oz.) bottle containing sal volatile having the dose and mode of administration indicated on the
label, One roll of adhesive plaster, One snake-bite lancet, One (1 oz.) bottles of potassium
permanganate crystals, One pair of scissors, One copy of the first aid leaflet approved by the
Chief Inspector of Factories.
1.6) FINDINGS
In India, the number of workers at a given workplace is important with regard to
enforcement of specific legislation. In small-scale industries or companies with less than 10
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workers, workers have almost no rights. The Minimum Wages Act for some selected industries
and the Workmen's Compensation Act are the only legal protection for those workers. In
industries with more than 10 workers when power is used or more than 20 workers when there is
no use of power, the firm has to register under the Factories Act and has to pay its contribution
according to the Payment of Bonus Act. When there are more than 20 workers, the company has
to contribute to the Provident Funds and has to enter the Employees State Insurance Scheme
(ESI). In the case of 50 or more workers, the Industrial Workers Act and the Industrial Disputes
Act can be enforced and when there are over 100 and 250 workers the rules of the Factories Act
are further enlarged by dictating all kind of provisions for the workers.
According to PRIA (Society for Participatory Research In Asia), State Factories
Inspectorates are unable or unwilling to enforce legislation as they are overloaded and sometimes
collude with the employer. It is important to repeat here, that only those firms employing more
than 20 persons (without power) or 10 persons (with power) are required to report on
occupational injuries and diseases. The following are the reasons why factories covered under
factories Act do not benefit from labor legislation:
1) A worker cannot directly take a factory owner to court even if the latter violates all
provisions of the Factories Act. The Factory Inspectorate is the only authority which
can seek legal action against employers;
2) Not all factories are inspected by the Factory Inspector because this target is beyond
his/her capacity (both in terms of time and money);
3) The Acts only provide/lay clear remedies that are available to workers subsequent to
disease or infirmity, but do not lay down any principle regarding prevention of unsafe
working conditions;
4) The benefit at the time of injury under the Employees' State Insurance Scheme ESI is not
available if the injured worker has not contributed to the common fund for at least 13
months;
5) As far as the Employees' State Insurance Scheme is concerned, it has become a scheme
for the general health of the worker. The ESI hospitals do not have trained doctors to
diagnose occupational diseases;
6) Under the Workmen's Compensation Act, a worker is entitled to compensation only if
he/she is bedridden for a minimum of 3 days. If the injury does not hamper the
production of a commodity, then it is not considered an injury.
A broad insight into the existing occupational health laws in India explicably brings out
the verity of non-implementation of such laws, considering the present scenario with respect to
the workmens health conditions. The workmen in dangerous employments are exposed to
substances like asbestos, chromium and silica dust and are vulnerable to respiratory diseases and
cancer. There is need to preserve the good health of workmen by ensuring safe and healthy
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working conditions and provides prompt compensation on account of injury or occupational
disease. Due to limited contributions of governmental agencies and trade unions to safeguarding
workers' health, it has been observed that the current status can only be changed by the capacity
of the workers themselves to organize and fight for those choices which are the most
conducive to their overall health.
In conclusion, governments, private employers and trade unions fall short in
protecting workers' health. There is a role for civic initiatives, including the workers
themselves, in this field.
REFERENCES
1) De Graaf A (1988): Workers in the Formal Industry. A case study examining the
labor and living conditions of workers inthe formal industry in a town in southern
India, M.A. thesis, department Human Geography, University of Amsterdam .
2) Ory FG and Budorf A (1997): Strategies and methods to promote occupational health
in low-income countries. Pg. 49-55.
3) U.P. Factories Manual 1950, Govt of Uttar Pradesh.
4) Vaidyanathan G (1992): Profile on Occupational Safety and Health in India. Labor
Administration International Labor Organisation. Asian and Pacific Regional Centre
for Labor Administration (ARPLA) Bangkok
5) Van Liemt G (1989): Minimum labor standards and international trade: Would a
social clause work? International Labor Review, pg. 128, 4: 433-448.
6) VHAI Voluntary Health Association of India (1987): Occupational hazards. Health for
the Millions, Vol. XIII, no. 4.
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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
CHALLENGES AND OPPORTUNITIES OF
ISLAMIC BANKING IN INDIA
DR . KAVITA CHAVALI*; DR. KISHAN RAO**
*Associate Professor, Alliance University, Chikkahagade Cross,
Chandapura - Anekal Main Road, Anekal, Bangalore - 562106
Karnataka, India.
**Professor, Alliance University, Chikkahagade Cross,
Chandapura - Anekal Main Road, Anekal, Bangalore 562106,
Karnataka, India.
ABSTRACT
During the last few decades, great changes have taken place in the Indian financial
system. The most significant changes are deregulation of Indian banking sector,
entry of new banks, and internationalization with the objective of increasing
competition and tap new growth opportunities. Islamic banking a popular global
phenomenon is now being introduced in India along with conventional banking. This
study is carried out to establish the relevance of Islamic banking in India. It strives
to explore the background and issues of Islamic banking in Indias economy. The
paper analyses the implications and assess the benefits and viability of Islamic
banking as potentially a genuine alternative to a formal conventional banking system
in India.

KEYWORDS: Islamic Banking, Interest, Profit and loss sharing, Shariah, India.
______________________________________________________________________________
1. INTRODUCTION
1.1. GLOBAL SCENARIO
Islamic Banking is a value-based system that primarily aims at ensuring moral and material well
being of the individual and society as a whole (Naqvi, 1982; Zarqa, 1983; Ahmed, 1994).The
idea of Islamic banking goes back to as early as the 7th century, but it was only commercially
implemented in the last century (De J onge A, 1996). Interest-free Islamic banking is a
worldwide trend with over 500 Islamic banking institutions operating all over the world from
Africa and Europe to Asia and Australia. According to International Islamic Finance forum, the
total assets under management in Islamic Banking in the world are expected to increase to $1
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trillion by 2013. The banking system in Iran has moved over to the Islamic system since the early
80s and Pakistan is Islamising its banking system. Islamic banking is not just for Muslims but
a mechanism for financing business to all without charging interest. In Malaysia, more than 40
percent of the investors and 60 percent borrowers in Islamic banks are non-Muslims. One-fifth
customers of Islamic Bank of Britain are non-Muslims. (Segrado, 2005) observe that Islamic
banking is growing at an average rate of 15 percent a year, which makes it the fastest growing
sector in the financial markets of the contemporary world. (Zaher et al., 2001) explains that
currently Islamic banking is making waves in all corners of the world from Malaysia, through the
Middle East and Africa, to Europe and America.
1.2. INDIAN SCENARIO
Over the last decade, a number of significant changes have occurred in the Indian banking sector
with a view to raise the efficiency and productivity of banks as a whole. With the objective to
increase the reach of banking system to more people in India, Government of Kerala launched
interest free, full-fledged Global Islamic Banking in Cochin, Kerala. Islamic bank will be started
with a share capital of Rs.1000 crores in which Kerala State Industries Corporation will have 11
percent share and remaining 89 percent from private investors.
The prime agenda for RBI is to create financial inclusion. The Raghuram Rajan Committee in
their report A Hundred Small Steps, for the first time advocated interest-free banking for India
thereby necessitating an alternative form of banking to create financial inclusion. This is in
consonance with the objectives of inclusion and growth through innovation. The non-availability
of interest-free banking products till now resulted in some Indians, including those in the
economically disadvantaged strata of society, not being able to access banking products and
services. In view of the above, the banks in India are to be allowed to do Islamic banking. India
has a Muslim population of 120 million, there is a huge potential for full-fledged Islamic Banks
in India. A recent survey by (Bagsiraj et al., 2002), observed that 80 percent of Muslims in urban
India are willing to deposit or invest in Islamic Financial Institutions (IFIs) on a Profit/Loss-
Sharing (PLS) basis and 67 percent of Muslims in urban India are willing to borrow from Islamic
Financial Institutions. However, only 13 percent of Muslims in urban India currently have an
account with an existing Islamic Finance Organization, with 57.5 percent totally unaware of their
existence.
2. CONCEPTUAL FRAMEWORK
Islamic Bank is the bank practiced as per Islamic principles called Shariah. The Islamic law
prohibits interest on loans and deposits. The argument against interest as per Muslim law is that
money is not a commodity and profits should be earned on goods and services only and not on
the control of money. Islam as a religion prohibits charging of interest and practice of gambling,
ambiguity and concealment of information, deceit and fraud, hazardous activity and hoarding,
etc. in financial transaction between persons and institutions with a view to promote justice,
equity and excellence in financial affairs of the society. It operates on the principle of sharing
both profits and risks by the borrower as well as lender. The depositor cannot earn a fixed return
in the form of interest as in conventional banking. But banks are permitted to offer incentives
such as variable bonuses in cash or kind on these deposits. Unlike conventional banking the
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depositor who provides capital equally shares the risk with the bank which lends funds.
According to Islamic law, there should be an equal partnership in loss or gain. It is unjust for the
bank to say to a lender whom you are lending money that whether he earns a profit or not he has
to pay a fixed return in the form of interest. The underlying financial principles in Islamic
finance have remained unchanged since 1,400 years. The prohibition on paying or receiving of
interest is based on the Islamic tenet that money is only a medium of exchange and that it has no
value in itself and therefore should not be allowed to give rise to more money. Muslims believe
that all things have been provided by God and benefits derived from them are for mans use and
so they are permissible except those prohibited in Quran. They are transactions in unethical
goods and services, earning interest / returns from a loan contract, compensation-based
restructuring of debts, excessive uncertainty in contracts, gambling and chance-based games,
trading in debt contracts at discount and forward foreign exchange transactions.
3. REVIEW OF LITERATURE
Noraini Mohd Ariffin et al., (2009) has studied 28 Islamic Banks across 14 countries to
understand the perceptions of Islamic bankers about the nature of risks, risk measurement and
risk management techniques in their banks using a questionnaire. The results indicate that
Islamic banks are mostly exposed to similar types of risks to those in conventional banks, but
that there are differences in the level of the risks. Credit Risk is high in Islamic banks because of
asymmetric information and Liquidity risk is high because Islamic banks are not levered by
deposits as conventional banks (Al-Omar et al., 1996). Interest rate risk is not applicable to
Islamic banks which are considered to be a fair value exposure on fixed instruments, rather than
a cash flow exposure. (Khan et al., 2001) examine risk in 17 Islamic financial institutions from
10 different countries and find that Islamic bankers rank the rate of return risk as the most critical
risk they face. For example, a Murabaha contract cannot use swaps to hedge this risk. Murabaha
is a form of contract in which one party brings capital and the other party puts in personal effort.
The proportionate share in profit is determined by mutual consent, but the loss, if any, is borne
by the owner of the capital, unless the loss has been caused by negligence violation of the terms
of the contract. (Mohsin S Khan et al., 1990) has conducted a study to understand the
experiences and on how the system of Islamic banks was working since their inception in Iran
and in Pakistan. These are the two countries who have initiated Islamic Banking in the world. As
per their study majority of the Islamic banks in these countries was established through private
initiatives. The fears that the formal financial system would collapse after the advent of the
interest free Islamic banking did not happen. There were a lot of policy changes and government
support which strongly influenced the success of Islamic banks in Iran and Pakistan. In India
similar changes are expected for the Islamic banks to play a prominent role. There were few
studies which focused on the policy implications of a financial system without interest payments
(Khan et al., 1987). There is very less work done on the feasibility and performance evaluation
of Islamic banks. (Rima Turk Ariss et al., 2007) has conducted a research on the challenges of
capital adequacy and the implications of implementation of Basel I and II on Islamic banks and
the risks associated with specifically Islamic banks. Three additional risks are identified for
Islamic banks which include price, fiduciary and displaced commercial risks (Chapra U et al.,
2000). Price risk refers to the risk that the price of the underlying asset might change over the
course of the transaction. If a conventional bank acquires a commodity for trading purposes, it is
a form of price risk. Islamic banks have to own different assets before they can sell them to
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clients in need of financing as per the Shariah rule that one cannot sell what one does not own.
This exposes the majority of Islamic banks transactions to price risk. Fiduciary risk refers to the
probability of the bank being guilty of negligence or misconduct in implementing the deposit.
The depositors may, lose confidence in the bank and withdraw their deposits.
4. ANALYSIS
In 2005, a working group was constituted by the RBI under the chairmanship of RBI Executive
Director, Mr. Anand Sinha to examine the aspect of introduction of Islamic banking in India. The
committee presented the report and felt that India has the potential of an emerging market for
Islamic banking, provided there is political will and increased awareness among people in India
as a whole. The report also felt that there is a need to introduce changes in the regulatory
system. Islamic banking is successfully implemented in countries like UK, Singapore, J apan and
Malaysia. The regulators can choose and implement any model which is feasible to the Indian
scenario.
The Indian Banks are regulated by many laws like Indian Banking Regulation Act (1949), The
Reserve Bank of India Act (1935), The Negotiable Instruments Act and the Cooperative
Societies Act (1866). None of these laws accommodate the possibility of an interest free banking
system in India. The western countries such as France and the UK have adopted Islamic banking
and amended the regulatory framework to be conducive to Islamic banking. Introduction of
Islamic banking in India also should bring in significant amendments as it is impacted by several
regulations, such as Stamp duty, Banking Regulations Act, Corporate and other Tax Regulations
to evolve a different system of regulation and control. For example Section 6 of Banking
Regulation Act, 1949, banks in addition to the business of banking, are permitted to engage in
business. In the case of Islamic banking, the very business of banking itself involves the bank
in active trading, purchase and resale of properties and investment which is not permissible
under the Banking Regulation Act, 1949. The RBI makes it mandatory for all banks to maintain
CRR and SLR which takes care of liquidity of the banks as per the Banking Regulation Act,
1949. In case of Islamic banking, issues of liquidity shortage or surplus by banks may have to be
handled differently, since there is no interest as per Islamic principles. One way of doing it is to
maintain the current legislation with regard to conventional banks but to specifically
accommodate and amend the legislation so as to make the laws inapplicable to interest-free
banks. Amendments will have to expressly allow some regulatory authority the ability to deem a
bank capable of interest-free operations. Section 21 of the Banking Regulation Act requires
payment of interest on deposits, thus, interest-free deposit and simple charging of premium is not
permissible. Banking Regulation Act does not allow banks to invest money in equity funds. It
does not allow any kind of profit-sharing and partnership contract which is the basis for Islamic
Banking. The Banking Regulation Act even disallows an Indian bank from floating a subsidiary
abroad to launch such products, or offer these through a special window. Thus, Islamic banking
is impossible without multiple amendments to the Banking Regulation and other connected
enactments.
Experts opine that non-availability of Islamic banking in India might become a case of a missed
opportunity in terms of growth and financial inclusion. In FY09, FDI equity inflows from UAE
were $257 mn and the UAE was among the top 10 investing countries for India. Islamic banking
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is likely to tap these funds further and would help boosting FDI inflows into the country. J aved
Ahmad Khan, Associate Professor, Centre For West Asian Studies, J amia Millia Islamia, author
of Islamic Banking in India, Scopes & Challenges, advises that Islamic banks have to learn a lot
from the modern, interest-based banks, especially on their managerial skills, financing tools and
transparency standards. Conventional banks which are offering Islamic windows are much more
attractive for investors in Muslim countries. Islamic banks in India would be viable and trusted,
if they run under the control of conventional banks, say State Bank of India or any other
established bank. The absence of rating agencies, especially agencies that would rate products
as well as institutions on the ground of Shariah compliance needs to addressed which might
hamper the growth of Islamic Banking.
4.1. ADVANTAGES OF IMPLEMENTING ISLAMIC BANKING IN INDIA:
Volatile interest rates, high bank fees and payment defaults make people unhappy with
conventional banking system. According to (Siddiqi M. Nejatullah, 2003) Interest-based
loans go to those who are the most credit-worthy. They do not necessarily go to finance
projects expected to be most profitable. Conventional banking system gives importance
to credit worthiness of the client rather than expected profitability of the project. At
times promising projects might fail to receive finance if it comes from one who does not
have collateral to support the project. With a heavy emphasis on equity and profit-
sharing, the prime factor used to determine whether a project is worth financing in the
Islamic banking system is the expected profitability of the project alone.
Islamic banking can alleviate poverty bring down economic disparities as there is no
interest commitment on the part of the lender. It can inculcate the habit of saving among
people and create the financial inclusion required in India. Islamic banking draws
finances from both Muslims and non-Muslims alike. Islamic banks offer financial
instruments that are profitable but also affordable and ethical.
Islamic banks in the global scenario are the solution to economic turndown. One of the
important factor which resulted in international financial crisis are innovative financial
products and transactions and short selling (Short selling occurs when stock market
participants sell stocks / commodities which they do not own in order to profit later from
an anticipated fall in prices). Islamic banks are insulated from interest based transactions
because Islam as a religion prohibits interest and also prohibits short selling.
4.2. CHALLENGES IN IMPLEMENTATION OF ISLAMIC BANKING IN INDIA
India is a secular country and anything attached to any particular community or religion may
create problem to the government. The challenges and critical issues involved are the varying
interpretations of Islamic principles (Shariah) across regions, countries and even within the same
country is a big challenge. Shariah Council, an independent bank-appointed panel of scholars
determines the Islamic practice and its interpretation. Therefore, based on the interpretation of
what is considered Islamic in Malaysia maybe prohibited in India. This absence of uniform
standards might affect the banks ability to replicate and implement Islamic banks and products
across geographies and expand to other states. This council must approve all innovative products
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but, without a uniform interpretation, it becomes very difficult. Another challenge is the
regulatory framework governing these banks leading to operational problems like there is no
accounting, auditing, and credit analysis standards for Islamic banks till now. To operate in
globalised economy, RBI is looking to banks to meet international standards and Islamic
business model might have a problem in complying with it. Another major challenge is winning
investors confidence. The conventional banks have the facility of deposit insurance and credit
guarantee which develops sense of security and confidence among investors, which is not
available for Islamic banks.
5. CONCLUSION
There are a lot of benefits to India to open a full-fledged Islamic bank and encourage and allow
Islamic banks to enter the market place. The entry of the Islamic banks raises important
questions about its potential impacts. On the one hand, entry of Islamic banks is positive in terms
of product innovations and financial inclusion and may encourage the adoption of best practices
among the incumbent banks. Islamic banks would be beneficial for all entrepreneurs who have
profitable proposals but lack collateral. On the other hand, competition from conventional
banking system is expected to intensify, necessitating the smaller Islamic banks to establish their
positions. The interpretation of fundamentals of Islamic financial principles and emergence of
clear standard and a common framework will help bring about improved management practices
in Islamic banks resulting in higher growth and profit margins.
6. REFERENCES
Ahmed, Z. (1994), Islamic banking: state of the art, Islamic Economic Studies, Vol. 2 No.
1,pp. 1-34.
Ahmed J aved Khan and Ausaf (2003), Introduction to Islamic Banking in India: Scopes
&Challenges, Institute of Objective Studies, 17-18.
Al-Omar, F. and Abdel-Haq, M. (1996), Islamic Banking: Theory, Practice and Challenges.
Karachi, Pakistan: Oxford University Press.
Bagsiraj,M Munawar Iqbal and David T. Llewellyn (2002), Islamic Financial Institutions of
India: Their Nature, Problems and Prospects in Islamic Banking and Finance, Edward Elgar
Publishing, KK,188-190.
Chapra, U. and Khan, T. (2000), Regulation and Supervision of Islamic Banks, Islamic
Research Institute, Islamic Development Bank.
De J onge A . ( 1996 ) , Islamic law and the finance of International trade , Monash
University, Working Paper, Melbourne.
Khan, T and Ahmed, H. (2001), Risk Management: An Analysis of Issues in Islamic Financial
Industry, Occasional Paper No. 5, Islamic Research and Training Institute (IRTI), Islamic
Development Bank, J eddah.
AJRSHVolume1,Issue3(November,2011)ISSN22497315

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40
Khan, M and Mirakhor, A. (1987), Theoretical studies in Islamic banking and finance, Houston,
UK,IRIS Books.
Mohsin S Khan and Abbas Mirakhor (1990), Economic Development and Cultural Change,
University of Chicago.
Naqvi, S.N.H. (1982), Ethics and Economics: An Islamic Synthesis, The Islamic Foundation,
Leicester.
Noraini Mohd Ariffin and Simon Archer (2009) , Risks in Islamic banks: Evidence from
empirical research, J ournal of Banking Regulation , 10, 153163. doi:10.1057/jbr.2008.27.
Rima Turk Ariss and Yolla Sarieddine(2007), Challenges in implementing capital adequacy
guidelines to Islamic banks, J ournal of Banking Regulation, Vol. 9, 1 4659 , Palgrave
Macmillan Ltd, 1745-6452
Segrado C. (2005), Islamic micro-finance and socially responsible investments[online]
URL:http://www.saa.unito.it/discussion_papers.
Siddiqi M. Nejatullah and J aved Ahmad Khan (2003), Rationale of Islamic Banking in Indian
Perspective in Islamic Banking in India: Scopes & Challenges, Institute of Objective Studies,
New Delhi,61.
Zarqa, M.A. (1983), Stability in an Interest-free Islamic economy: A note, Pakistan J ournal of
Applied Economics, Vol. 2, winter, pp. 181-8.
Zaher, T. S. & Hassan, M. K. (2001),A comparative literature survey of Islamic finance and
banking, Financial Markets, Institutions and Instruments, 10(4): 155 199.

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
IMPLEMENTATION OF ERP SOFTWARE:
A CASE ANALYSIS OF INDIAN OIL CORPORATION

DR. VISHAL BISHNOI*

*Associate Professor,
Shobhit University.

ABSTRACT

ERP software is considered as an information backbone for an organizations core
business functions. Since world is heading towards digital economy, more and more
companies have been implementing ERP software in part or in whole. ERP software
is one the fastest growing segment of the Software industry with an annul growth
rate of about 32%.

Implementing an ERP system is a major project requiring a significant level of
resources, commitment, managing risk and changes throughout the organization.
ERP software, when implemented successfully can yield in much reduction in the
cost of operations / manufacturing and better control on business operations. Thus,
it is very important to study the importance and effects on the major the aspects
including various production costs, profit margins, Cost-Benefit analysis in
multinational companies as they have a large network of their operations and
branch offices in other countries also need to be controlled.

This study will attempt to present the various economic aspects of ERP
implementation including cost / benefit analysis, profit margin study and will test
ERP implementation reduces costs significantly in the largest Oil producing
company of India Indian Oil Corporation (IOC).

KEYWORDS: Cost Leadership, Enterprise Resource Planning (ERP), Multinational
Companies, Financial Benefits.
________________________________________________________________________


AJRSH

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AJRSH


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44
Standardisation. The project was proposed to be completed in 29 months (i.e.
September 1999).
According to the advice of the Consultants, the Company selected SAP/R3
iii

along with the associated oil and gas specific software IS-OIL and CIN as the ERP

solution across the Company. The system was supposed to be integrating important
organizational functions such as Finance and Controlling, Human Resources,
Production Planning, Sale and Distribution, Material Management, Plant Maintenance,
Project System and Quality Management. This was also to be supplemented with add-
ons i.e. additional software solutions, which could be seamlessly integrated into the
ERP environment. The add-ons addressed vital functions such as demand forecasting,
distribution planning, crude selection and refinery planning.
After a preliminary study and collection of background information an entry conference was held
with the Management on 6 March 2007 to discuss the audit objectives/ sub- objectives and audit
criteria. Test audit was conducted during February to July 2007 covering the Refinery Offices at
Haldia and New Delhi.
4. FINANCIAL BENEFITS OF ERP IMPLEMENTATION
The project estimates (including software, hardware and consultancy costs) of Rs.95.95 crore in
March 1997 escalated to Rs.273 crore in September 2002, however, Rs.182 crore had been spent
on the project (March 2004)
iv
.
4.1 TANGIBLE BENEFITS
The Company, while implementing the ERP system, calculated the expected benefit of Rs.358
crore per annum due to implementation of ERP and Rs.215 crore per annum due to
implementation of add-ons in ERP
v
. This benefit was supposed to flow after implementation of
the project from
(i) inventory optimisation (Rs.147 crore),
(ii) reduction in transportation expenses (Rs.70 crore),
(iii) saving in banking cash (Rs.33 crore),
(iv) reduction in demurrage costs (Rs.31 crore),
(v) discount through accounts payable management (Rs. 30 crore),
(vi) reduction in cheque holding time (Rs.15 crore),
(vii) reduction in accounts receivable (Rs.12 crore),
(viii) reduction in time overrun in project implementation (Rs.11 crore) and
AJRSH

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Accounting / Finance
Saving in banking cash 33
Discount through accounts payable management 30
Reduction in cheque holding time 15
Reduction in accounts receivable 12
90
Human Resource and Operations
Reduction in transportation expenses 70
Reduction in demurrage costs 31
Reduction in time overrun in project implementation 11
Reduction in communication expenses 9
121

Net Annual Benefits 358
Payback Time (one time cost / annual benefits) 182/358 0.51
Return on Investment (Annual benefits/Fixed cost) X 100 (182/358)x 100 50.84

4.3 FINANCIAL PERFORMANCE OF OPERATIONS
TABLE 2: FINANCIAL PERFORMANCE OF IOC
Financial year 2004-05 2005-06 2006-07 2007-08 2008-09* 2009-10
Turnover 150,729 183,204 220,779 247,457 285,398 271,074
Gross Profit 8,722 9,931 14,622 14,334 11,319 18,872
Net Margin 5.79 5.42 6.62 5.79 3.97 6.96
* Due to High increase in Crude oil price from about $35 per barrel to $147 per barrel from
July 2008 till the later part of the year the profit margins reduced drastically.
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FIGURE 4: NET MARGIN DURING 2004 2010 OF IOC
Source: Annual reports of relevant years of IOC
4.4 IMPACT OF ERP SYSTEM ON SELECTED OPERATIONS
The following test is used to test weather the cost of selected operations has reduced significantly
after the implementation of ERP software. As the sample size is small we have used the t test to
check the statement.
5.79
5.42
6.62
5.79
3.97
6.96
0
1
2
3
4
5
6
7
8
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
%
Year
Net Margin
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TABLE 3: TEST OF SIGNIFICANCE T
Particulars Pre ERP (Cr. Rs.) Post ERP (Cr. Rs.) Variance Sq of variance
Inventory Management
Inventory 19839.96 19692.96
Frieght, Transportation charges &
Demmurage
4288.22 4114.87
Sub Total 24128.18 23807.83 320.35 102624.12
Accounting & Finance
Bad debts / Advances & Claims
written off
3.94 2.6
Loan & Advances 6045.79 4730.1
Total dues of SSI undertakings 44.31 35.23
Outstanding Receivables 14.9 6.46
Outstanding Payables 114.24 58.86
Loss on Assessts sold, Advance Claims
written off
23.96 15.8
Sub Total 6247.14 4849.05 1398.09 1954655.65
Human Resource & Operations
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Maintenance Plant & Machines 526.72 518.17
Cost per Mt. Tonn 224.86 176.54
Printing & Stationary 18.36 16.91
Processing Fees, Blending Fee etc. 42.22 10.88
Manufacturing, Admin & other Exp. 702.73 633.09
Handling Exp. To parties related to
Joint Venture Companies
41.4 33.51
Sub Total 12091.65 10353.02 1738.63 3022834.28
Sum (Rs Cr.) 3457 5080114.05
Mean 1152
CF 3983777.66
Sum Sq
SE 740.38
SEM 427.46
Value of 't' 2.70
Table Value of t at dof 4 and doe .025 2.132
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Source : Value of Operations have been taken from annual report of 2004-05 & 2005-06 of IOC
2

On the basis of above test , as the table value of t (i.e 2.132 ) is less than the calculated value of t (i.e. 2.70) we can say that the
implementation of ERP software has reduced the cost of selected operations significantly.
4.5 EFFECT ON PRODUCTION COST
TABLE 4: PRODUCTION COST
S.No. Product Name FY Sales Opening Closing Diff Total Production
Stock Stock 2006 2005 2007
1 Petrolium Products (MMT) 06 618.33 44.01 46.32 2.31 620.64
05 638.25 49.26 44.01 -5.25 633
2 Lubricant & greases (MMT) 06 4.19 0.43 0.44 0.01 4.2
05 3.71 0.52 0.43 -0.09 3.62
3 Crude Oil (MMT) 06 89.16 0 0 0 89.16
05 74.73 0 0 0 74.73
4 Base Oil & Additives (MMT) 06 0.64 0 0 0 0.64
05 0.77 0 0 0 0.77
5 Lab (MMT) 06 1.07 0.06 0.1 0.04 1.11

2
Annual report of financial year 2004-05 & 2005-06 of IOC.
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05 0.4 0 0.06 0.06 0.46
Sub Totol 07 757.81 47.64 50.48 2.84 760.65
6 Gas 06 670.8 6.1 0.52 -5.58 665.22
05 628.45 7.28 6.1 -1.18 627.27
07 771.14 0.53 1.58 1.05 772.19

Total Prod. (in MMTon*) 1380.97 1339.85 1532.84
Total Expend. 782234.7 595871.9 1040288
Raw Mat 682343.6 497061.4 885598.2
Net Exp 99891.1 98810.5 154689.5
Expenditure / MT (Rs.) 176.54 224.86 147.35
* Million Metric Ton
Source : Annual report of corresponding years.
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FIGURE 5: COST PER METRIC TON DURING 2005 2007
5. SUMMERY AND CONCLUSIONS
This study sought to study major economic variables and the improvement in their cost
effectiveness after the implementation of ERP system in the Indian Oil Corporation and its
effects on efficiency of business processes. The objective of the study is to focus and delineate as
to how the implementation of an ERP system platform impacts business processes for improved
business performance. Attention has also been paid on business objectives and organizational
factors and their influence on the successful implementation of ERP software in Indian
multinational organizations.
In order to develop a better perspective results arrived at during the course of the present
study were compared to past performance and it was revealed that it is economically feasible to
implement ERP software and if implemented successfully, yields reduced operational cost and
operating margins.
The study also provides an insight that ERP implementation ensures process and
production cost improvements. The main improvements are related to Inventory management,
Finance and Operations. Processes are performed more efficiently with less labor, and less cost
with ERP applications. The improved processes allow an organization to perform more
efficiently and results in better service to both the organization and Customers.
Therefore, ERP implementation improves business performance, reduces various costs,
Standardizes Centralized business processes, and enhances the decision support system. Hence,
above mentioned factors facilitate an MNC to control, manage and perform in a competent
manner.
224.86
176.54
147.35
0
50
100
150
200
250
20004-05 2005-06 2006-07
Rs.
Year
Cost / MT
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i
Indian Oil annual report 2008-09
ii
Indian Oil annual report 2009-10
iii
SAP is

Systeme, Andwendungen, Produkte in der Datenverarbeltung which, translated into


English, means Systems, Applications, Products in data processing.
iv
Re-engineering Project (Manthan) (2005), Reviews on IT Audit, Report No. 6 of 2005
(Commercial), Indian Oil Corporation, Chapter 5,Para 5.1.8, pp 119.
v
Re-engineering Project (Manthan) (2005), Reviews on IT Audit, Report No. 6 of 2005
(Commercial), Indian Oil Corporation, Chapter 5, pp 113 133.
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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
RURAL MARKETING: DETERMINANT FOR
SUSTAINABLE BUSINESS GROWTH IN INDIA

HARDEEP SINGH*; BIKRAM PAL SINGH**; JASPREET KAUR***

*Assistant Professors, Training & Placement Officers,
Department of Training & Placement, Ferozepur College of Engineering & Technology (FCET),
Punjab Technical University (PTU), J alandhar, Punjab, India.
**Assistant Professors, Training & Placement Officers,
Department of Training & Placement,
Global Institutes, Amritsar, Punjab, India.
***M.Tech Scholar, Department of Electronics and Communication,
Amritsar College of Engineering & Technology (ACET),
Amritsar, Punjab, India.

ABSTRACT

PURPOSE: To highlight the effectiveness as well as success of rural marketing
initiatives towards the sustainable business growth at all levels in India.

RESEARCH METHODOLOGY: Research methodology used as conducted in this
research paper is based upon real data primary and secondary as well. Personal
Interview Method, Telephonic Interview Method and Questionnaire Method have
been used. Some support persons who were quite familiar with rural marketing
practices had been additionally interviewed.

FINDINGS: Rural marketing, now days, is becoming a committed concept to
achieve inclusive sustainability in business, social justice, equality and the
opportunity for the development of the nation. Rural marketing is increasing day by
day

LIMITATIONS: There had been some problems in getting information from
respondents as they were interviewed in a very short time and a few of them were
quite busy to give proper thought to the questions. The indifferent or unsupportive
attitude of some respondents while responding to the questions also affected the final
findings.

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TYPE OF RESEARCH PAPER: The type of research paper lies in the real work
done by conducting interviews and surveys in the real market with the research
personnel as well as with rural managers through specially framed questionnaires
and interviews. In this paper we have mainly discussed the effectiveness as well as
contribution of rural marketing towards the sustainable business growth in India To
give this paper a real look we have also discussed some real empirical studies also.

KEYWORDS: Business Growth, Development, Marketing, Rural, Sustainability.
______________________________________________________________________________
INTRODUCTION
India has been witnessing many changes in the field of marketing and perhaps the most
formidable reason for this is the ongoing process of liberalization and globalization. There is a
substantial increase in the purchasing power of the people, their life-style has changed
remarkably due to their increased purchasing power and moreover they are influenced by
different cultures. At present, Indian consumers demand almost all consumer goods both durable
and non-durable. Earlier consumer durables like TV, two-wheeler or refrigerator were treated as
luxuries but now these are being considered as necessities. However, the situation which we are
talking about largely prevails only in urban areas till now. The urban market was given high
attention due to the boom period in economy since 1991, but now it has almost been saturated,
forcing the marketers to shift their battlefields from urban markets to rural markets. For the
marketers of the new millennium, the rural market is quite an opportunity to tap. At the
beginning of 20
th
century, Mahatma Gandhi said. The soul of India lives in its villages. More
than 70 percent of the households in India live in the rural India. The rural market of India
started showing its potential in the 1960s. The 70s and 80s witnessed its steady development. In
our country, where research on consumer behavior has been nominal, not much systematized
information is available about the rural consumers. Only a few enlightened companies, known
for their marketing orientation, viz., Hindustan Lever, Philips India, Asian Paints, Singer and
Larsen and Toubro have made concrete efforts in this direction. But, by and large, we have still
to understand the rural buyer his habits, attitudes and behavior, particularly from the marketing
point of view. Many assumptions prevail about rural marketing. For instance, one assumption is
that the rural buyer is not very discriminating. Once he is persuaded to buy a particular product,
he develops a strong affinity for it, and if satisfied, becomes brand loyal. As a result, Indian
manufacturers are generally known to prefer selling fewer items at higher prices than selling
more items at lower prices. A contrary view is that the rural buyer, being suspicious of the
marketers hard sell techniques, is quite discriminating, and is not easily persuaded. Yet another
assumption is that the rural buyer is not particularly keen about quality and packaging. Some
other assumptions can be quoted. But, all these need deep probing for arriving at valid and
reliable conclusions. Consumer research, thus, is indispensable for entering the rural segment of
the market.
HISTORY OF RURAL MARKETING
Before 1960, rural marketing referred to selling of rural products in rural and urban areas and
agricultural inputs in rural markets. It was treated as synonymous to agricultural marketing.
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Agricultural produces like food grains and industrial inputs like cotton, oil seeds, sugarcane etc.
occupied the central place of discussion during this period. The supply-chain activities of firms
supplying agricultural inputs and of artisans in rural areas received secondary attention. The local
marketing of products like bamboo baskets, ropes, window and door frames, and small
agricultural tools like ploughs by sellers like black smiths, carpenters, cobblers, and pot makers
were emphasized in general. This was totally an unorganized market where the local business
people dominated this market. During 1960 to 1990 green revolution resulted from scientific
farming and transferred many of the poor villages into prosperous business centers. As a result,
the demand for agricultural inputs went up especially in terms of wheat and paddies. Better
irrigation facilities, soil testing, use of high yield variety seeds, fertilizers, pesticides and
deployment of machinery like powder tillers, harvesters, threshers etc. changed the rural
scenario. In this context, marketing of agricultural inputs took the importance. During this
period, the marketing of rural products received considerable attention in the general marketing
frame work. The formation of agencies like Khadi and Village Industries Commission, Girijan
Cooperative Societies APCO Fabrics, IFFCO, KRIBHCO, etc., and also the special attention
government had paid to promote these products were responsible for this upsurge. Village
industries flourished and products like handicrafts, handloom textiles, soaps, safety matches,
crackers etc. hit the urban market on a large scale from rural areas. After Mid 1990s the products
which were not given attention so far were that of marketing of household consumables and
durables to the rural markets due to obvious reasons. The economic conditions of the country
were as such that the rural people were not in a position to buy these kinds of products.
Secondly, our market was in a close shape and we newer allowed companies (foreign) to operate
in Indian market. But we lifted and opened up economy, consequently companies started
flourishing in India. The small villages/hamlets were widely scattered making reach difficult and
expensive consequently. Rural markets were seen an adjunct to urban market and conveniently
ignored. However, since 1990s, Indias industrial sector had gained in strength and maturity. Its
contribution to GNP increased substantially. A new service sector had emerged signifying the
metamorphosis of agricultural society into industrial society. Meanwhile, due to the development
programmes of the central and state governments, service organizations and socially responsible
business groups like Mafatlal, Tatas, Birlas, Goenkas and others, the rural area witnessed an all
round socio-economic progress. The economic reforms further accelerated the process by
introducing competition in the markets. Steadily, the rural market has grown for household
consumables and durables. Rural marketing represented the emergent distinct activity of
attracting and serving rural markets to fulfill the needs and wants of persons, households and
occupations of rural people.
WHAT IS RURAL MARKETING?
In the India context, the word RURAL is so much associated with agriculture and farmers that
rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture. Rural
marketing is a function which manages all those activates involved in assessing, stimulating and
converting the purchasing power into an effective demand for specific products and services, and
moving them to the people in rural area to create satisfaction and a standard of living to them and
thereby achieves the goals of the organization.
Rural markets have become the new targets to corporate enterprises for two reasons:
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1. Urban market has become congested with too many competitors.
2. The market has reached a near saturation point.
Various factors which have made rule markets viable are Large population; Raising prosperity;
Growth in consumption; Life-style changes; Life-cycle advantages; Market growth rates higher
than urban; Rural marketing is not expensive; and Remoteness is no longer a problem. The
Indian rural market today accounts for only about Rs 8 billion (53 percent - FMCG sector, 59
percent durables sale, 100 percent agricultural products) of the total ad pie of Rs 120 billion, thus
claiming 6.6 percent of the total share. So clearly there seems to be a long way ahead.Time and
again marketing practitioners have waxed eloquent about the potential of the rural market. But
when one zeroes in on the companies that focus on the rural market, a mere handful names come
to mind. Hindustan Lever Limited (HuL) is top of the mind with their successful rural marketing
projects like 'Project Shakti' and 'Operation Bharat'.
NEED OF THE STUDY
With the rapid increase in buying capacity of people, more and better goods and services now are
in continuous demand. The liberalization and globalization of the Indian economy have given an
added advantage to sophisticated production, proliferation and mass distribution of goods and
services. The bulk of Indias population lives in villages. In terms of the number of people, the
Indian rural market is almost twice as large as the entire market of the USA or that of the USSR.
Taking these into consideration, the question may arise whether marketers should concentrate
their activities in urban India consisting of metros, district headquarters and large industrial
townships only, or extend their activities to rural India.
OBJECTIVES OF THE STUDY
To highlight the effectiveness as well as success of rural marketing initiatives towards the
sustainable business growth at all levels in India
To develop an insight into rural marketing regarding different concepts and basic practices in
this area.
To discuss the challenges and opportunities in the field of rural marketing.
RESEARCH METHODOLOGY
Research methodology used as conducted in this research paper is based upon real data
primary and secondary as well. Personal Interview Method, Telephonic Interview Method and
Questionnaire Method have been used. Some support persons who were quite familiar with rural
marketing practices had been additionally interviewed.


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EMPIRICAL DATA
RURAL MARKETING BY HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Limited (HuL) is top of the mind with their successful rural marketing
projects like 'Project Shakti' and 'Operation Bharat'. In 1998 HuLs personal products unit
initiated Project Bharat, the first and largest rural home-to-home operation to have ever been
prepared by any company. The project covered 13 million rural households by the end of 1999.
During the course of operation, HuL had vans visiting villages across the country distributing
sample packs comprising a low-unit-price pack each of shampoo, talcum powder, tooth paste and
skin cream priced at Rs. 15. This was to create awareness of the companys product categories
and of the affordability of the products. For HLL, a one rupee or a five rupee sachet or the Kutti
Hamam (the small Hamam) helps in giving the consumers a trial opportunity. While it does help
in generate volume but not in terms of values. "Till the time that volume - value equation is
managed better. Ultimately, the ball lies in the court of rural marketers. It's all about how one
approaches the market, takes up the challenge of selling products and concepts through
innovative media design and more importantly interactivity.
MAHINDRA AND MAHINDRA LAUNCH MAXXIMO MINI VAN FOR RURAL
MARKET
By launching its next generation Maxximo mini van, Mahindra
has entered a new segment of mini vans. The company hopes to
sell about 2000 vehicles every month and the target is semi urban
and rural India. While it is marketing the mini van through its
commercial vehicle channel, the company feels the Maxximo
could have passenger vehicle applications as well. This vehicle
can be used for schools vans, marriages in semi rural markets.
NOKIA AND VODAFONE TIE UP TO OFFER NOKIA LIFE TOOLS SERVICES
FOR RURAL CONSUMERS

Nokia and Vodafone joined hands to launch Nokia Life Tools services targeted at providing
Indian rural consumers with access to relevant content on agriculture, education, health care and
entertainment. This tie-up between two leading companies in the telecom sector represents a
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wide scale distribution model that will empower rural subscribers with access to life
improvement Nokia Life Tools services available in a simple icon based graphical rich user
interface and will be able to bridge the information gap by providing access to information on
Agriculture, Education, Healthcare, entertainment etc. for the rural consumers.
RURAL MARKETING BY TATA MOTORS
Tata Motors has adopted an innovative marketing strategy to
push sales of its small commercial and passenger vehicles-Ace
Zip and Magic Iris respectively in the rural markets. The
company has already opened 600 small outlets for the Ace in
rural and semi-urban markets. It has tied up with 117 public
sectors, Gramin (rural) and Co-Operative banks to help small
entrepreneurs buy the vehicle. It has also tied-up with Central
Governments Nehru Yuva Vikas Sangathan, Indian Oil
Corporation and e-Choupal respectively to push rural sales. The company will be targeting rural
areas, which have population below 50,000 and do not have a dealership for the tie-up. Even
Tata has launched Tata Nano car keeping in mind the poor and rural people of India so that every
person may have a dream car (TATA NANO).
RURAL MARKETING BY COCA COLA

"YAARA DA TASHAN...
"Yaara da Tashan..." ads with Aamir Khan created universal appeal for Coca Cola. Coca-Cola
India tapped the rural market in a big way when it introduced bottles priced at Rs 5 and backed it
with the Aamir Khan ads. The company, on its behalf, has also been investing steadily to build
their infrastructure to meet the growing needs of the rural market, which reiterates the fact that
this multinational has realized the potential of the rural market is going strength to strength to tap
the same.

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RURAL MARKETING BY OTHERS
Amul is another case in point of aggressive rural marketing. Some of the other corporates that
are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG
Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda
to name a few. Interestingly, the rural market is growing at a far greater speed than its urban
counterpart. "All the data provided by various agencies like NCAER, Francis Kanoi etc shows
that rural markets are growing faster than urban markets in certain product categories at least.
The share of FMCG products in rural markets is 53 percent, durables boasts of 59 percent market
share. Therefore one can claim that rural markets are growing faster than urban markets.
CHALLENGES FOR RURAL MARKETING
Despite rapid strides in the development of the rural sector, some of the major challenges for
rural marketing are as follows:
TRANSPORTATION: Transportation is an important aspect in the process of movement of
products from urban production centers to remote villages. The transportation infrastructure
is extremely poor in rural India. Due to this reason, most of the villages are not accessible to
the marketing man. In our country, there are six lakhs villages. Nearly 50 percent of them are
not connected by road at all. Many parts in rural India have only kachcha roads. During the
monsoons, even these roads become unserviceable. Regarding rail transport, though India has
the second largest railway system in the world, many parts of rural India however, remain
outside the rail network.
COMMUNICATION: Marketing communication in rural markets suffers from a variety of
constraints. The literacy rate among the rural consumers is very low. Print media, therefore,
have limited scope in the rural context. Apart from low levels of literacy, the tradition-bound
nature of rural people, their cultural barriers and their overall economic backwardness add to
the difficulties of the communication task. Post, telegraph, and telephones are the main
components of the communication infrastructure. These facilities are extremely inadequate in
the rural parts of our country. In rural areas, the literacy percentage is still low, compared to
urban areas. In India, there are 18 recognized languages. All these languages and many
dialects are spoken in rural areas. English and Hindi are not understood by many people. Due
to these problems, rural consumers, unlike urban consumers do not have exposure to new
products.
AVAILABILITY OF APPROPRIATE MEDIA: It has been estimated that all organized
media in the country put together can reach only 30 percent of the rural population of India.
The print media covers only 18 percent of the rural population. The radio network, in theory,
covers 90 percent. But, actual listener ship is much less. TV is popular, and is an ideal
medium for communicating with the rural masses. But, it is not available in all interior parts
of the country. It is estimated that TV covers 20 percent of the rural population. But, the
actual viewer ship is meager. The cinema, however, is a good medium for rural
communication. But, these opportunities are very low in rural areas.
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WAREHOUSING: A storage function is necessary because production and consumption
cycles rarely match. Many agricultural commodities are produced seasonally, whereas
demand for them is continuous. The storage function overcomes discrepancies in desired
quantities and timing. In warehousing too, there are special problems in the rural context.
The central warehousing corporation and state warehousing, which constitute the top tier in
public warehousing in our country, have not extended their network of warehouses to the
rural parts. It is almost impossible to distribute effectively in the interior outlets in the
absence of adequate storage facilities. Due to lack of adequate and scientific storage facilities
in rural areas, stocks are being maintained in towns only.
VILLAGE STRUCTURE IN INDIA: In our country, the village structure itself causes
many problems. Most of the villages are small and scattered. It is estimated that 60 percent of
the villages are in the population group of below 1,000. The scattered nature of the villages
increases distribution costs, and their small size affects economic viability of establishing
distribution points.
BRANDING: The brand is the surest means of conveying quality to rural consumers. Day
by day, though national brands are getting popular, local brands are also playing a significant
role in rural areas. This may be due to illiteracy, ignorance and low purchasing power of rural
consumers. It has been observed that there is greater dissatisfaction among the rural
consumers with regard to selling of low quality duplicate brands, particularly soaps, creams,
clothes, etc. whose prices are often half of those of national brands, but sold at prices on par
or slightly les than the prices of national brands. Local brands are becoming popular in rural
markets in spite of their lower quality.
PACKAGING: As far as packaging is concerned, as a general rule, smaller packages are
more popular in the rural areas. At present, all essential products are not available in villages
in smaller packaging. The lower income group consumers are not able to purchase large and
medium size packaged goods. It is also found that the labeling on the package is not in the
local language. This is a major constraint to rural consumers understanding the product
characteristics.
SURVEY RESULTS
1. Rural managers have an important role in expanding the footprints of the organized sector,
modernizing marketing systems and improving access to formal working mechanisms. Near
by 70% of the respondents were of this opinion. 23% were of other opinion. Rest did not
respond due to unawareness.
2. Initiation and management of social and economic change in the rural sector is the core of the
rural marketing process. More than 79% of the respondents were of this opinion.
3. Rural marketing initiatives have been successful in spreading white revolution across the
country. Today India is leading country in the world milk production. More than 78% of the
respondents were of this opinion. Rests were not aware of this fact.
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4. Rural managers are one of an important component of professionals, who will increasingly
have to work through cooperative partnerships to achieve the development vision of the
nation. Only 62% of the respondents were of this opinion.
5. With the recent changes in the market methodologies in rural areas, rural people are
becoming educated. More than 76% of the respondents were of this opinion.
6. In the present scenario, rural people have become more value conscious than price. More
than 74% of the respondents were of this opinion.
7. The rural market has a grip of strong country shops, which affect the sale of various products.
Nearby 58% of the respondents were of this opinion. Rest were of other opinions.
8. The standard of living of rural people is improving day by day. More than 72% of the
respondents were of this opinion.
9. Only 55% of the respondents agreed that the word of mouth is an important message carrier
in rural areas.
10. Major challenges to rural marketing include poor transportation, poor communication, non-
availability of appropriate media, problem of warehousing, problem of branding and
packaging etc.
11. More than 77% of the respondents agreed that in India, rural marketing is becoming a
committed concept to achieve sustainable business growth.
FINDINGS
1. Rural managers have an important role in expanding the footprints of the organized sector,
modernizing marketing systems and improving access to formal working mechanisms.
2. Initiation and management of social and economic change in the rural sector is the core of the
rural marketing process.
3. Rural marketing initiatives have been successful in spreading white revolution across the
country. Today India leading country in the world milk production.
4. Rural managers are one of an important component of professionals, who will increasingly
have to work through cooperative partnerships to achieve the development vision of the
nation.
5. With the recent changes in the market methodologies in rural areas, rural people are
becoming educated.
6. In the present scenario, rural people have become more value conscious than price.
7. The rural market has a grip of strong country shops, which affect the sale of various products
in rural market.
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8. The standard of living of rural people is improving day by day.
9. The word of mouth is an important message carrier in rural areas.
10. Major challenges to rural marketing include poor transportation, poor communication, non-
availability of appropriate media, problem of warehousing, problem of branding and
packaging etc.
11. In India, rural marketing is becoming a committed concept to achieve sustainable business
growth.
CONCLUSION
Rural marketing can be seen as a function which manages all those business activities involved
in assessing, stimulating and converting the purchasing power into an effective demand for
specific products and services and moving them to the people in rural area to create satisfaction
as well as improving their standard of living, thereby leads to the sustainable business growth of
an organization. The rural market in India has great potential, which is just waiting to be tapped.
Progress has been made in this area by some, but there seems to be a long way for marketers to
go in order to derive and reap maximum benefits. Moreover, rural India is not as poor as it used
to be a decade or so back. Things are sure changing.
REFERENCES
[1]. Acharya, S.S. and Agarwal N.L Agricultural Marketing in India.
[2]. Bijoor, Harish. Go Rural, Economic Times, J une 14, 1999
[3]. Business India, Feb. 23-March 8, 1998.
[4]. Dogra and Ghuman. Rural Marketing Concepts and Practices Tata McGraw Hill
Publishing Company Ltd. New Delhi. (2008).
[5]. Gopalaswamy, T.P.. Rural Marketing, Wheeler Publication, 1997.
[6]. J ha, S. M. and Singh, L. P.. Agricultural Marketing-Some Basic Issues, Marketing
Management in Indian Perspective, Himalaya Publishing House, Delhi. (1988). p. 55-682.
[7]. Kashyap Pradeep and Siddharth Raut. The Rural Marketing Briztantra, New Delhi.
(2006).
[8]. Kotler, Philip. Agricultural Marketing.
[9]. Sayulu, Kuchi. Rural Marketing in India: Annual. New Delhi. (1994).
[10]. Shukla, R.K. New Perspective in Marketing. Rural Marketing: Thrust and Challenges,
National Publishing House, New Delhi. (1997).
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[11]. Singh, A. and Sandhu, A. N.. Agricultural Marketing, Agricultural Problems in India.
Himalaya Publishing House, Delhi. (1991). p. 349-74.
[12]. Singh Sukhpal(2004) Rural Marketing-Focus on agricultural inputs. Vikas Publishing
House(Pvt.) Ltd. New Delhi. (2004).
[13]. Statistical Outline of India 2006-2007-Tata Services Ltd. Mumbai (2007)
[14]. Times of India News Paper Report (2001).
[15]. Tyagi, Kumar, Lalit. Rural Communication, Kurukshetra, May, (2000).
[16]. Velayudhan, Sanal Kumar. Rural marketing-Targeting the non-urban consumer,
Response Books Sage Publications India (Pvt.) Ltd. New Delhi. (2002)

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
FORMAL AND INFORMAL
AGRICULTURAL CREDIT: AN APPRAISAL

DR. SUKHVINDER SINGH*; MISS RAMNEET KAUR**

**Associ ate Professor i n Economi cs,
Uni versity Col l ege, Kurukshetra Uni versity, Kurukshetra.
**Assi stant Professor in Management,
**S. K. S. I nsti tute of Management and Technol ogy,
Ki rmach, Kurukshetra.

ABSTRACT

An in dept h study of what, in pract i ce, i s current l y happeni ng at t he
vill age and f arm level s i n t he context of credi t requirement s and
suppl y i n t he presence of t he mul t i -di mensi onal and multifaceted
credi t suppl y system bui l t up i n t he count ry assumes speci al
significance in the case of Haryana. The present st udy ai m at
accessi ng and eval uat i ng t he perf ormance of f ormal and informal.
Credi t agenci es cat eri ng t o t he needs f or agri cul t ural f i nance i n
Haryana

KEYWORDS: Credi t , Formal Credi t , i nformal Credit .
__________________________________________________________________
INTRODUCTION
Attai ni ng a conti nuousl y hi gh rate of growth i n the economy has become the
pri me goal of the devel opment efforts i n all the countri es of the worl d. The
process of economi c devel opment i s i tsel f an i ntri cate phenomenon. I t i s
determi ned by a mul ti pli ci ty of i nter rel ated factors rel ati ng to the physi cal ,
fi nanci al , psychol ogi cal and instituti onal aspects of an economy. Of these, the
fi nanci al factor pl ays a cruci al rol e i n the process of economi c growth. Al l
productive activiti es require for their sustenance
,
some quantum of credit, the
exact amount terms and durati on dependi ng upon the physi cal requi rements and
ti me i nvol ved i n the process of producti on and expectati ons there from.
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I n a country l i ke I ndi a where the vast maj ori ty of popul ati on l i ves i n the
vi l l ages and about 80 per cent of the popul ati on draws i ts l i vel i hood from
agri cul ture, the overal l devel opment of the economy natural l y depends upon.
and i s ti ed up with the devel opment of rural agri cul tural sector. The need for
credi t i n thi s sector, li ke that of most other i nputs, i s at l east as i mportant and
strategic as i n other sectors. A farmer who can rai se onl y one and two crops i n a
year has to mai ntai n hi mself and hi s fami l y and al so meet the i ntermi ttent
expenses and costs of cul ti vati on throughout the year out of the proceeds of hi s
si ngl e harvest. Some may have the means to do so, but many have to depend on
avai l abl e credi t faci l i ties. Mul ti pl e croppi ng woul d tend. and has tended. to
reduced the peri od of such dependence of credi t but not necessari l y the amount,
whi ch basi cal l y i s rel ated to the i ntensi ty as wel l as extensi ve of
croppi ng/culti vati on.
Recent changes i n the agri cul tural practi ces and recent progressive
adopti on of new and modern cul ti vati on techni ques which require the use of
greater quantum of i nputs, have enl arged both the rol e and i n the need for
credi t. Credi t, thus has become more positive i nstrument i n the agri cul tural
devel opment process. Even those farmers who hi ther to needed much l ess credi t
whi l e carryi ng out cul ti vation by tradi ti onal l ow-producti vi ty methods are now
tendi ng i ncreasi ngl y to resort to credi t and borrowi ngs from vari ous sources to
fi nance for the

adopti on of the new i nput mi x. Other who have the knowl edge
and the ski l l enterpri se adopt and devel op these practi ces fi nd i t economi cal l y
worth-whil e to borrow more, i .e., thei r need to barrow i s enhanced. As a
consequence capaci ty to barrow as wel l as credi t worthi ness of most farmers has
been i mprovi ng. Thi s i ntroduces a new. dynami c el ement i nto the whole process.
There i s i ncreasi ng competi ti on among the needy farmers i n getti ng hol d of the
avai l abl e credi t i n parti cul ar from the formal credi t agenci es whi ch provi de
credi t on more favourabl e terms. I n thi s process, the better off farmers wi th
greater resourceful ness and credit-worthi ness tend to push the small,
unprogressi ve and l ess credi t worthy farmers more and more towards traditional
sources of credit such as i nformal credi t agenci es. But there i s a posi ti ve aspect
thi s also, i n the sense that the greater prosperi ty of the betteroff farmers woul d
i tsel f i ncrease the suppl y of credi t to the smal l er farmers not havi ng enough
access to formal credi t.
Credi t i s not necessaril y obj ecti onable nor is harrowi ng necessaril y a si gn
of weakness. The probl em of agri cul tural fi nance. however, i s crucial one. I n
addi ti on to the uncertai nti es regardi ng pri ce and output, agri cul ture faces
di fficul ti es i n the suppl y of capi tal . I n vi ew of vi tal i mportance of credi t for
accel erati ng agri cul tural devel opment on modern l i nes, the problems of
devel opi ng and organising moderni sed system of agri cul tural finance have
recei ved the i ncreasi ng attention of economi sts, planners and pol i cy makers i n a
number of devel oping countries.
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An i n depth study of what, i n practi ce, i s currentl y happeni ng at the
vi l l age and farm l evel s i n the context of credi t requi rements and suppl y i n the
presence of the mul ti -di mensi onal and mul ti faceted credi t suppl y system bui l t
up i n the country assumes speci al si gni fi cance i n the case of Haryana. I n the
present study we ai m at accessi ng and evaluati ng the performance of formal and
i nformal . Credit agenci es catering to the needs for agri cul tural fi nance i n
Haryana.
There are two types of credi t i n agricul tural sector i .e.. formal credi t and
i nformal credit.
The agenci es whi ch provi de the formal credit are:
i ). Co-operati ves
(a) whi ch meeti ng short and medi um-term credi t, and
(b) those provi di ng l ong-term credits

(i ) Commerci al Banks, and
Both provi des short-term, medi um-terms and l ong-term credi t. The
I nformal credi t agenci es are:
(i ) Money-l enders:
(a) Professi onal Money-lenders, and
(b) Agri cul tural Money-l enders
(i i ) Commi ssi on Agents;
(i i i ) Rel ati ve and Fri ends, and
(i v) Other Sources.
METHODOLOGY
The study concentrated on di stri ct Kurukshetra of Haryana State. The
singl e di stri ct study has certai n li mi tati ons as al so some advantages. The mai n
l i mi tati on, of course, i s the rather small area covered whi ch may not enabl e us
to generate i mpl i cati ons for general ised concl usi ons/ resul ts. The mai n
advantage i s the high degree of homogenei ty of the cluster of uni ts consti tuti ng
the sampl e popul ati on, provi di ng a certai n degree of depth to the anal ysi s,
whi ch compensates for the l oss of wi dth that a cl uster survey may entai l .
The speci fi c choi ce of di stri ct Kurukshetra has been governed basical l y by
i ts bei ng one of the most developed di strict of the state i n the sense of havi ng
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been at the forefront of the green revolution and havi ng a devel oped
i nfrastructure i n terms of i rri gati on, power, markets, transportati on, fi nanci al ,
educati onal etc. faci l i ti es. The experi ence of the sampl e househol ds i n thi s
regi on i n respect of the fi nanci ng of the sector i s expected to generate anal yti cal
and pol i cy i mpl i cati ons of much greater use and appl i cabi l i ty el sewhere too.
Three stages strati fi ed random sampl i ng techni que has been adopted. The
three stages i ncl ude the sel ecti on of bl ocks, villages and ultimate numbers of
farmers. Out of si xteen distri cts of Haryana state, distri ct Kurukshetra was
purposi vel y sel ected. At the fi rst stage, out of the four devel opment bl ocks of
Kurukshetra di stri ct, two blocks were selected on the basis of agri cul tural
devel opment and al so on the basis of croppi ng pattern.
At the second stage, four vi l l ages from each of the two bl ocks (a total of
ei ght vi l l ages) were selected randomly, keepi ng i n mi nd the diverse Agro
economi c condi ti ons. At the thi rd stage, i n each vi l l age, a sampl e of 23 farm
househol ds was taken randoml y. These farmers were further categori zed i nto
marginal , smal l , medi um and l arge on the basi s of si ze of thei r operati onal
hol di ngs as fol l ows:
(a) Margi nal farmers havi ng 0-2.49 acres of operational hol di ngs duri ng
the survey peri od.
(b) Smal l farmers havi ng 2.50 to 4.99 acre of operati onal hol di ngs.
(c) Medi um farmers havi ng 5 to 19.9 acres of operati onal hol di ngs.
(d) Large farmers having 20 and above 20 acres of operati onal hol di ngs.
The agriculture credit i s classi fied accordi ng to ti me. vi z.. short-term,
medi um-term and l ong-term. The short-term l oans are for vari abl e i tems of
capi tal of seasonal i nputs such as seeds, feed, fuel , ferti l i zers and pesticides,
el ectri ci ty, casual l abour and so on These l oans l ast for a peri od, rangi ng
f rom si x months to a year, or at the most, f or f i f teen months.
The medi um-term l oans are f or worki ng capi tal assets such as f arm
machi nery di esel engi nes, i rri gati on structures, threshers, dai ry-ani mal s
and poul try f arms etc. These l oans are f or real estate wi l l ] a short
repayment peri od upto a maxi mum f i ve years.
The l ong-term credi t i s f or purchase of heavy f arm-machi nery,
combi ne harvester, permanent l and i mprovements and buyi ng of l and etc.
I t has a l ong repayment peri od usual l y rangi ng f rom f i ve to ten years
whi ch, i n some cases, may extended even upto twenty years.
Thus i n al l , a sampl e of 184 f armers, consi sti ng of 12 margi nal , 45
smal l , 90 medi um and 37 l arge f armers was drawn accordi ng to proporti on
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of the f armers i n the vi l l ages f or getti ng comprehensi ve uni t f ormati on
rel ati ng to the present study. For the col l ecti on of data di rect personal
i ntervi ew method was adopted. The data were col l ected wi th the hel p of a
sui tabl y desi gned and pre -tested questi onnai re.
RESULTS AND DI SCUSSI ONS
I n order to produce and to move beyond the stage of more
subsi stence the f arm househol ds have to f i nd f unds f or i nvestment i n the
new technol ogy packages. An E.A.O. study emphasi zes: "Few farm househol ds
can mai ntai n and expand their enterpri se wi thout havi ng resource from ti me to
ti me borrowi ngs. The farm househol ds, l ike busi nessmen, usual l y conduct most
of thei r operati ons on a credi t basi s." Whi l e one may not agree total l y wi th the
second part of thi s observati on, one cannot di sagree at al l with first part. Thi s i s
more true to Haryana farmers, a maj ori ty of whom have i nadequate resources of
thei r own.
Tabl e 1 bri ng out the extent of total , per farm, per acre and per-fami l y
member borrowi ngs by di fferent size-group of farm households. I t i s evi dent
that 12 margi nal farm househol ds borrowed a total amount of 3,54,576.00 (1.20
percent) as agai nst Rs. 1,55,34,120.00 (52.36 percent) and Rs. 11,7,16040.00
(39.48 percent) by medi um farm househol ds and l arge farm househol ds,
respecti vel y. The share of smal l farm househol ds i n the total borrowi ngs
amounts to Rs. 2065680.00 (6.96 percent). Thi s shows (hat the l arge farm
househol ds, who consti tute onl y 20.11 percent the total borrowers have cornered
above 40 percent of the total borrowi ngs. Per farm borrowi ngs by margi nal ,
smal l , medi um and l arge farm househol ds are Rs. 29,548.00, Rs. 45904.00, Rs.
172601.00 and Rs. 3 16650.00 respecti vel y for both the crops. Khari f and Rabi
taken together. The extent of per-acre borrowi ngs i s the highest i n the ease of
medi um farm househol ds fol l owed by margi nal and smal l farm househol ds. The
per acre credi t requi rements are the l owest i n the case of l arge farm househol ds
which indi cates that the most of credi t need for fi xed capital have already been
met and they requi re credi t for meeti ng day-to-day agri cul tural operations. Al so,
there i s perhaps, a mi ni mum i ndi vi dual uni t of credi t for, say, equi pment)
requi red perfarm hol di ngs whi ch gets spread more and more thi nl y as we move
up al ong the si ze categori es.
SOURCE-WISE EXTENT OF BORROWINGS OF SAMPLE FARM
HOUSEHOLDS
Credi t faci l i ti es the si ne-qua-non for overall agri cultural devel opment of a
country. Attempts have been made over ti me to ensure adequate and ti mel y
suppl y of credi t to farmers by strengtheni ng the formal credi t base. I nspi te of al l
the efforts i n thi s di recti on, the i nformal credit conti nue to remain important
and are sti l l operati ng i n the rural areas. I t woul d, therefore, be rel evant here to
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i nvesti gate the extent and breakup of borrowi ngs from the two sets of credi t
agenci es, vi z., formal credi t agencies and informal credit agenci es.
Source-wi se extent of borrowi ngs by di fferent si ze group of sampl e farm
househol ds has been presented i n Table I I . Si gni fi cantl y, the table reveals that
the i nformal credi t agenci es conti nue to be the more dependabl e for borrowi ngs
by margi nal farm househol ds. Al l of them tap thi s source. However, cooperative
Soci eti es and Commerci al Banks have al so came to occupy an i mportant pl ace as
a source for thei r financi ng. I n the case of l arge househol ds, the borrowings
from the i nformal credi t farm agenci es are rel ati vel y i nsi gni fi cant, bei ng 5.78
percent of the total borrowi ngs by thi s category. Commerci al Banks are the most
i mportant borrowi ngs for them as 85.19 percent of their source total borrowi ngs
emanate from thi s source fol l owed by co-operati ve soci eti es whi ch fi nance 9.03
percent of thei r borrowi ngs. Al most the same behavi or has been observed i n the
case of medi um farm househol ds. The hi gher dependency of smal l and margi nal
farm househol ds on the i nformal credi t agenci es woul d seem to be due mai nl y to
their easy accessibility to these sources.
CATEGORY-WISE AMOUNT OF SHORT-TERM, MEDIUM TERM AND
LONG TERM CREDIT AMONG SAMPLE FARM HOUSEHOLDS
These seems to be an i mportant rel ati on between the length of the peri od
for whi ch l oans are taken and the si ze of the farm. Thus, a l arge farm househol d
woul d have to rel ati vel y greater need for l ong-term credit for financi ng hi s
i nvestment i n fi xed capital assets.
The category-wi se and period-wi se pattern of borrowi ngs has been shown
i n Table I I I . I t i s cl ear from the tabl e that i n the case of margi nal and smal l farm
househol d short-term borrowi ng are to the extent of 52.62 and 73.26 percent
respecti vel y fol l owed by medi um-term credi t with percentage of 47.38 and 20.93
percent respecti vely. I n the case of medi um farm househol ds the extent of
medi um-term borrowi ngs i s the highest as the medi um term credi t consti tutes
59.04 percent. I n the case of l arge farm househol ds the l ong-term credi t
consti tutes 42.25 percent of thei r total borrowi ngs, fol l owed by medi um-term
and short-term credi t whi ch accounts for 42.40 and 16.35 percent respectively.
Term-wi se credit requirements for al l categori es of from househol ds show that
medi um-term credi t accounts for about 50 percent of total credi t fol l owed by
l ong-term and short-term credit.
I t i s evi dent that so far as the medium-term and l ong-term credit is
concerned the formal credi t agenci es are domi nated i n al l the categori es of
sampl e farm househol ds. I n the case of short-term credi t the i nformal credi t
agencies are yet to be domi nated i n al l group of sampl e farm househol ds.
I nspi te of pl anned efforts of the government to provi de adequate and
ti mel y credi t faci l i ti es for agri cul tural devel opment, maj ori ty of the smal l and
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margi nal farmers sti l l heavi l y dependent on i nformal credi t. There are so many
reasons whi ch compel these farmers to depend mai nl y on i nformal credi t.
The fi rst reason i s the l ack of awareness of faci l i ti es avai l abl e and rul es
and regul ati on pertai ni ng to agri cul tural credi t whi ch i ndicates that the general
awareness about the l endi ng i nsti tuti ons i n the state i s sti l l i nadequate. The farm
househol ds, particularl y the marginal and smal l ones, shoul d be made aware of
vari ous rul es and faci l i ti es through i ntensi ve publ i ci ty so that they shoul d be
saved from fal li ng into the clutches of unbri dl ed pri vate moneyl enders.
The margi nal and smal l farm-househol ds are restri cted to seek credi t from
commerci al banks as they do not fulfill the minimum cri teri on of thei r l endi ng.
Thi s can be attri buted thei r smal l si ze of hol di ngs as wel l as under-val uati on of
l and by these i nsti tutes.
The another reason rel ates to the suppl yi ng of revenue records by the
government offi ci al s. The government offi ci al s, parti cul arl y. Patwari s, do not
suppl y revenue records unl ess. They are i ntegrated through underhand means.
Due to dil atory procedures and red-tapism. the farm househol ds feet greatl y
harassed. To make formal credi t system effecti ve there i s an urgent need to
worki ng such practices to have fair admi ni strati on.
The other reason is admi nistrati ve whi ch ari ses due to observati on of a
l ong chair of offi ci al formalities invol ved i n the l oan procedure ri ght from
fi l l i ng up of l oan appl i cati on form to i ts fi nal di sbursement, especi al l y when the
farm househol ds are mostl y i l l i terate and hesi stant. Thi s grave probl em
underl i nes the need for mi ni mi zi ng the admi ni strati ve formal ities and further
si mpli fyi ng the procedures of i nstituti ons l endi ng.
The other reason is i nadequacy of loans. I n order to suppl y adequate
amount of l oan to farm househol ds, there i s a need to rai se the cei l i ng fi xed by
the l endi ng i nsti tuti on.
The next probl em whi ch compel the farmers to depends on i nformal credi t
i s hi gh cost of credi t. Duri ng the process of acqui si ti on of credi t, vari ous
unnecessary expenses have to be i ncurred due to frequent vi sits to bank si tuated
at so far off pl aces. Thi s someti me compel farm househol ds to l eave thei r
appli cation hal fway. To protect the farm househol ds from undue harassment and
to save thei r ti me and money, the process of credi t avai l abi l i ty shoul d be
streaml i ned.
The next probl em i s cornered wi th the di sbursement of l oan as reported by
the smal l and margi nal farmers. Thi s i s because of i mproper and unsci enti fi c
method used by i nsti tuti on personnel . To avoi d i nconveni ence to the farm
househol ds the date of di sbursement of l oan as noti fied to the farm househol ds
should be stri ctl y adhered to.
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The Reserve Bank of I ndi a has recentl y recommended (to some of the
Banks) that l onger peri od l oan shoul d be al l owed to smal l and margi nal farmers
by the banks keepi ng i n vi ew the useful l i fe of the asset created out of the l oan.
Thus, for i nstance, l oan for pump sets may not be ordinari ly for more than seven
years but for smal l and margi nal farmers the peri od may be ei ght years. Loans
for the si ngl e purpose of, say wel l constructi on may be for a year, through for
smal l and margi nal farmers the peri od may be 12 or even 1 5 years.
Besi des al l thi s, the i nsti tuti onal system i n the state i s not free of vari ous
corrupt practi ces, i ncl udi ng embezzl ement by the offi ci als.
BOOKS AND REFERENCES
1. Theori es of Agri cul ture fi nance, V.B. J ugle, Atl anti c Publi cati on
2. Lesson on I ndi an Agricul ture, D. Cl oston, Kessinger Publi shi ng.
3. I ndian Agri cul ture: I ssues and prospects, A. Kumar, Publi sher Sarup
and Sons, 2001.
4. Hand Book of Agri cul ture, Bharat Si ngh, Anmol Publcati on Pvt. Ltd.
5. Hand Book of Agri cul ture: Facts and fi gures for farmers students and
all engaged or i nterested in farmi ng, I ndi an Counci l of Agri cul ture
research.
6. Handbook of I ndi an Agri culture, Nitya Gopal Mukarji , Publ ishers
General , Books LLC 2009.
7. Agri cul ture credi t i n I ndi an, Surji t Si ngh, Vi dya Sagar.
8. J ournal of Agricul ture and Resource and Resource economic Grey W.
Brester.
9. Agri cul ture Credi t i n I ndi an: Status, i ssues and future Agenda, Rakes
Mohan.
10. Maj or I deas i n the Hi story of Agri cul ture fi nance and form
Management, Barry, Peter, J . Stanton, Bernord, F.
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TABLE - 1
EXTENT OF BORROWING BY DIFFERENT GROUP F SAMPLE FARM HOUSHOLDS
Land/Credit Agricultural Credit Per
Farm Househol ds
Agri cul tural
Credit Per Acres
Agri cul tural Credi t
Per fami ly Members
Total Amount
of Agri cul ture
Credit (Rs.)

Percentage
Category No. of Farm
Househol ds
Amount
(Rs.)
No. of
Acres
Amount
of Credi t
(Rs.)
Members Amount
of Credi t
(Rs.)

Margi nal Farm
Househol ds
12 29548.00 40 8864.00 81 4377.48 354576.00 1.20
Smal l Farm
Househol ds
45 45904.00 242 8535.87 332 4621.92 2065680.00 6.96
Medi um Farm
Househol ds
90 172601.00 1090.5 14244.95 665 21716.20 15534120.00 52.36
Large farm
Househol ds
37 3 16650.00 1669 7019.80 369 3 1750.80 1 1716040.00 39.48
Al l Categori es 184 161253.00 3039.5 9761.61 1437 20661.85 29670416.00 100.00
Source:- Fi el d Survey
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TABLE -2
SOURCE-WISE EXTENT OF BORROWING BY ALL CATEGORIES OF SAMPLE FARM HOUSEHOLDS
Categories Margi nal Farm Househol ds Smal l Farm Househol ds Medi um Farm Househol ds
S
o
u
r
c
e

N
o
.

O
f


B
o
r
r
o
w
e
r
s
P
e
r
c
e
n
t
a
g
e

A
m
o
u
n
t

(
R
s
.
)

P
e
r
c
e
n
t
a
g
e

N
o
.

O
f


B
o
r
r
o
w
e
r
s
P
e
r
c
e
n
t
a
g
e

A
m
o
u
n
t

(
R
s
.
)

P
e
r
c
e
n
t
a
g
e

N
o
.

O
f


B
o
r
r
o
w
e
r
s
P
e
r
c
e
n
t
a
g
e

A
m
o
u
n
t

(
R
s
.
)

P
e
r
c
e
n
t
a
g
e

1. Formal Credi t Source
(a)
Cooperati v
e Soci eti es
10 83.33 105856.0
0
29.85 37 38.2
2
759280.0
0
36.76 72 80.00 2507920.00 16.15
(b)
Commerci a
l Banks
2 16.66 168000.0
0
47.38 12 26.6
7
552400.0
0
26.74 61 6707
8
11578000.0
0
74.53
2. I nformal Agents
Commi ssi o
n Agents,
Traders,
Landl ords,
Money
Lenders
12 100.0
0
80720.00 22.77 44 97.7
8
754000.0
0
36.50 59 65.55 144820.00 9.32
Al l
Categori es
24 - 354576.0
0
100.0
0
93 - 206580.0
0
100.0
0
192 - 15534120.0
0
100.0
0

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CATEGORI ES LARGE FARM HOUSEHOLDS ALL CATEGORI ES
S
O
U
R
C
E

N
O
.
O
F

B
O
R
R
O
W
E
R
S
P
E
R
C
E
N
T
A
G
E

A
M
O
U
T

(
R
S
.
)

P
E
R
C
E
N
T
A
G
E

N
O
.

O
F

B
O
R
R
O
W
E
R
S

P
E
R
C
E
N
T
A
G
E

A
M
O
U
N
T

(
R
S
.
)

P
E
R
C
E
N
T
A
G
R
E

1. Formal Credi t Sources
(a) Cooperati ve
Soci eti es
2 1 56.76 1018420.00 9.03 140 76.09 4391496.00 14.93
(b)
Commerci a1
Banks
29 78.38 9980400.00 8 5.19 1 04 5 6.52 22238800.00 75.09
2. I nformal Agents
Commi ssi on Agents,
Traders. Landl ords.
Money lenders
16 43.24 677200.00 5.78 13 1 7 1.19 2960120.00 9.98
Al l Categori es 66 - 1 17160040.00 100.00 375 - 29670416.00 100.00


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TABLE-3
CATEGORY-WISE AMOUNT SHORT-TERM, MEDIUM TERM AND LONG TERM CREDIT AMONG
SAMPLE FARM HOUSEHOLDS.
Types of Credi t Short Term Credi t Medi um Term Credi t Fong Term Credi t Total
Amount of
Credi t (Rs.)
Percentag
e
Category Amount
(Rs.)
Percentag
e
Amount
(Rs.)
Percentag
e
Amount
(Rs.)
Percentag
e
Amount
(Rs.)

Margi nal Farm
Househol ds
1 86576.00 52.62 168000.00 47.38 - - 354576.00 100.00
Smal l
Farm
Househol d
s
15
132.80.00
73.26 432400.00 20.93 120000.00 5.81 2065680.00 100.00
Medi um Farm
Househol ds
1460120.0
0
22.21 9172000.00 59.04 2912000.0
0
18.75 15534120.0
0
100.00
Large farm
Househol d
s
2032040.0
0
16.35 4968000.00 42.40 4716000.0
0
42.25 1716040.00 100.00
Al l Categori es 71
82016.00
24.21 15540400.0
0
49.68 7748000.0
0
26.1 1 29670416.0
0
100.00

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
PROSCIS CHANGE MANAGEMENT FOR
MIXING OF INDIVIDUAL CHANGE MANAGEMENT AND
ORGANIZATIONAL CHANGE MANAGEMENT TO ENSURE THE
ACHIEVEMENT IN BUSINESS

T. SUGANTHALAKSHMI*; DR. C. MUTHUVELAYUTHAM**

*Assistant Professor,
School of Management studies,
Anna University of Technology, Coimbatore.
**Associate Professor,
Directorate of Online Distance Education,
Anna university of Technology, Coimbatore.

ABSTRACT

Change management is a necessary component for any organizational performance
improvement process to succeed, including programs like: Six Sigma, Business
Process Reengineering, Total Quality Management, Organizational Development,
Restructuring and continuous process improvement. Change management is about
managing change to realize business results. The present paper analysis Proscis
Change Management for Mixing of individual change management and
organizational change management to ensure the achievement in business.

KEYWORDS: Change management, Total Quality management.
______________________________________________________________________________
INTRODUCTION
In a business environment changes are an ever occurring phenomenon. For example , agility of
the market , new client needs, or organizational restructuring affect the way of doing business
and hence do influence the design of business processes which leads to change in the
organization. Adaptability to changes and speed of innovation are a prerequisite for business
process management. Hence , a business process management approach should be able to
accommodate these changes in the model as and when they occur. In this paper we are going to
see about different models for change management.
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CHANGE MANAGEMENT
Change Management is a set of best practices and experiences, which are used to handle both
internal as well as external changes. Change Management includes effective management of new
methods and systems in an ongoing organization. Change from an existing setup to a new
environment has its own set of inherent problems and the problems become multirole when
applied in a service institution. Managers, leaders have to be aware of change and take active
role in anticipating, planning, facilitating and implementing organizational change through
effective change management strategies.
Change management is a necessary component for any organizational performance improvement
process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total
Quality Management, Organizational Development, Restructuring and continuous process
improvement. Change management is about managing change to realize business results.
DEFINITION
Change management can be defined as "the process of managing changes that occur because of
an event".
Karen Kaiser Clark states "Life is change. Growth is optional. Choose wisely". Management
when defined simply is nothing
BUSINESS DIMENSION OF CHANGE
The business dimension of change includes the typical project elements.
Business need or opportunity is identified.
Project is defined (scope and objectives).
Business solution is designed (new processes, systems and organizational structure).
New processes and systems are developed.
Solution is implemented into the organization.
These are the standard elements of a business change that managers feel most comfortable
managing.
PEOPLE DIMENSION OF CHANGE
Research shows that problems with the people dimension of change is the most commonly cited
reason for project failures. In a study with 248 companies, effective change management with
employees was listed as one of the top-three overall success factors for the project. Helping
managers be effective sponsors of change was considered the most critical success factor overall.
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The linkage between individual change management and organizational change management is
the key concept discussed in Prosci's approach . There are numerous models available that
address individual change. There are also numerous models available that give guidance and
structure to project activities for change management resources. The difference with Prosci's
methodology is that it integrates individual change management and organizational change
management to ensure the achievement of business results.
PROSCI'S CHANGE MANAGEMENT METHODOLOGY
Prosci's change management methodology is based on research with over 1600 participants over
the last ten years. What is unique about the methodology is that it comes from real project
leaders and teams reflecting on what worked, what did not and what they would do differently on
their next projects. At its core, Prosci's methodology is the collective lessons learned by those
introducing change across the globe. Based on this research, Prosci's goal has been to develop a
methodology that is holistic and at the same time easy to use. The resulting process, tools and
assessments have been developed with one goal in mind: that you can put them to use on your
projects, building your management skill set. Below is a high-level overview of Prosci's
methodology.
KEY PRINCIPLES
1. Change management requires both an individual and an organizational perspective
2. ADKAR presents an easy-to-use model for individual change
3. The 3-phase process gives structure to the steps project teams should take









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CHANGE MANAGEMENT REQUIRES BOTH AN INDIVIDUAL AND AN
ORGANIZATIONAL PERSPECTIVE
Individual change management Organizational change management
Understanding how one person
makes a change successfully
Understanding what tools we have to help
individuals make changes successfully
Organizations don't change,
individuals do. No matter how large of
a project you are taking on, the success
of that project ultimately lies with each
employee doing their work differently,
multiplied across all of the employees
impacted by the change.
Effective change management requires
an understanding for and appreciation
of how one person makes a change
successfully. Without an individual
perspective, we are left with activities
but no idea of the goal or outcome that
we are trying to achieve.
While change happens one person at a
time, there are processes and tools that
can be used to facilitate this change.
Tools like communication and training
are often the only activities when no
structured approach is applied.
When there is an organizational change
management perspective, a process
emerges for how to scale change
management activities and how to use
the complete set of tools available for
project leaders and business managers.
ADKAR PRESENTS AN EASY-TO-USE MODEL FOR INDIVIDUAL CHANGE
ADKAR is a goal-oriented change management model that allows change management teams to
focus their activities on specific business results. The model was initially used as a tool for
determining if change management activities like communications and training were having the
desired results during organizational change. The model has its origins in aligning traditional
change management activities to a given result or goal.
For example, Awareness of the business reasons for change is a goal of early communications
related to a business change. Desire to engage and participate in the change is the goal of
sponsorship and resistance management. Knowledge about how to change is the goal of training
and coaching. By identifying the required outcomes or goals of change management, ADKAR
becomes a useful framework for change management teams in the planning and execution of
their work.
The first step in managing any type of organizational change is understanding how to manage
change with a single individual. Prosci's model of individual change is called ADKAR - an
acronym for Awareness, Desire, Knowledge, Ability and Reinforcement. In essence, to make a
change successfully an individual needs:
Awareness of the need for change
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Desire to participate and support the change
Knowledge on how to change
Ability to implement required skills and behaviors
Reinforcement to sustain the change
ADKAR describes successful change at the individual level. When an organization undertakes
an initiative, that change only happens when the employees who have to do their jobs differently
can say with confidence, "I have the Awareness, Desire, Knowledge, Ability and Reinforcement
to make this change happen."
The goals or outcomes defined by ADKAR are sequential and cumulative. An individual must
obtain each element in sequence in order for a change to be implemented and sustained.
As a manager, you can use this model to identify gaps in your change management process and
to provide effective coaching for your employees. The ADKAR model can be used to:
diagnose employee resistance to change
help employees transition through the change process
create a successful action plan for personal and professional advancement during change
develop a change management plan for your employees
A WORK SCENARIO
If you are an employee in an organization undergoing change, your reaction to the change and
how you are viewed by the organization will be directly affected by each of the five elements in
the ADKAR model.
Take for example the implementation of a new software tool. If the change is implemented and
you believe it was not needed (i.e., you were not aware that any changes were required), then
your reaction might be:
This is a waste of time.
Why change if it was working just fine before?
They never tell us whats going on!
Our natural reaction to change, even in the best circumstances, is to resist. Awareness of the
business need to change is a critical ingredient of any change and must come first.
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If someone had taken the time to explain that the old software would no longer be supported by
the vendor, and that new software was necessary to meet the needs of your customers, then your
reaction (based on this awareness) would likely be very different:
How soon will this happen?
How will this impact me?
Will I receive new training?
Take this same example one step further. Assume you were made aware that a change was
required, but you had no desire to participate or support the change.
Whats in it for me.
I doubt they are really serious about this.
Now the tables are turned, and you may become the target of an emotional response from
individuals within the organization. You may be labeled as difficult, inflexible or unsupportive.
Some may say you lack initiative or vision. You may be called a cynic or pessimist.
Awareness and desire are two critical components of the change model. In the personal examples
that follow, you will see how the other elements of the model play a role in a successful change.
EXAMPLES FROM PERSONAL EXPERIENCE - CHANGING A CHILD'S BEHAVIOR
Changing unwanted behavior in children follows the ADKAR model well. Consider the five
goals of ADKAR as it relates to this example. Children first need to know what they are doing is
wrong. This awareness often comes when an upset parent tells the child he is doing something
wrong. Simply knowing it is wrong, however, will not stop most children. Their natural
inclination is to test the boundaries and push the limits. Consequences, either positive or
negative, are usually required. These consequences impact the child's desire to change. However,
the process cannot stop here. Given proper motivation to change, children need a role model to
understand what the proper behavior looks like. They need examples so they can obtain the
knowledge of what the correct behavior is. Next, they need practice in order to obtain the fourth
result of ADKAR, ability. Few children can change immediately; it is an ongoing process
requiring them to develop new skills and habits. They need time to develop the ability to act in a
new way. Finally, children need reinforcement to keep the good behavior going. This may be in
the form of positive encouragement or other types of rewards.
This example highlighted all five elements of the ADKAR model. Note that each element
represents a particular result that you are trying to achieve. Also consider that these results are
cumulative and must be taken in order.

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THE 3-PHASE PROCESS GIVES STRUCTURE TO THE STEPS PROJECT TEAMS
SHOULD TAKE
Prosci's organizational change management process was first introduced in 2002 after the third
change management benchmarking study was conducted. Prosci felt that with the third study,
there was a strong enough research basis for the process below. This process is built in stepsthat
a project team can complete for a particular change or initiative they are supporting.

PHASE 1 - PREPARING FOR CHANGE
The first phase in Prosci's methodology is
aimed at getting ready. It answers the
question: "how much change management is
needed for this specific project?" The first
phase provides the situational awareness that
is critical for effective change management.
OUTPUTS OF PHASE 1
Change characteristics profile
Organizational attributes profile
Change management strategy
Change management team structure
Sponsor assessment, structure androles
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PHASE 2 - MANAGING CHANGE
The second phase of Prosci's process is
focused on creating the plans that are
integrated into the project activities - what
people typically think of when they talk about
change management. Based on Prosci's
research, there are five plans that should be
created to help individuals move through the
ADKAR Model.
OUTPUTS OF PHASE 2
Communication plan
Sponsor roadmap
Training plan
Coaching plan
Resistance management plan

PHASE 3 - REINFORCING CHANGE
Equally critical but most often overlooked, the
third phase of Prosci's process helps project
teams create specific action plans for ensuring
that the change is sustained. In this phase,
project teams develop measures and
mechanisms to see if the change has taken
hold, to the see if employees are actually
doing their jobs the new way and to celebrate
success.
OUTPUTS OF PHASE 3
Reinforcement mechanisms
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Compliance audit reports
Corrective action plans
Individual and group recognition approaches
Success celebrations
After action review
CONCLUSION
The linkage between individual change management and organizational change management is
the key - and is what sets Prosci's approach apart from other change management methodologies.
There are numerous models available that address individual change. There are also numerous
models available that give guidance and structure to project activities for change management
resources. The difference with Prosci's methodology is that it integrates individual change
management and organizational change management to ensure the achievement of business
results.
The image below shows the connection between the change management tools developed in the
organizational change management process and the phases of individual change described by the
ADKAR model. This picture is the essence of effective change management and is the core of
Prosci's change management methodology.
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Connecting organizational and individual change management

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
ABSENTEEISM IN INDUSTRIES: PAST TO
PRESENT, ANALYSIS OF LITERATURE

DR. C. K. SINGH*; SONAL PUNDHIR**

*HOD, BMAS College, Agra.
**Assistant Professor, Anand Engineering College,
Anand Engineering College, Keetham Agra-Mathura Road, Agra.

ABSTRACT

Absenteeism, most frequently discussed problem by top management, an unsolved
case, a never leaving curse or can be said the oldest limitation in any organization.
Yes! Though it is discussed frequently but still exists everywhere, somewhere high
and somewhere low. Many people had done a lot of researches in this area and those
researches helped a lot in decreasing the rate of absenteeism. But the area of
concern is now how to get rid of this problem completely. This research is mainly
going to focus on the literature of absenteeism that suggested lot of solutions to this
problem and will suggest some innovative ways of solving this problem.







KEYWORDS: Absenteeism, workplace, techniques.
__________________________________________________________________________
INTRODUCTION
Do people really love to work? If we try to find out the answer to this question will we get the
answer in NO? Definitely not! Everyone will say we really like to work, we enjoy our work etc.
Then why researchers are so much worried regarding industrial absenteeism. Why the employers
have to check the yearly records of the employees? Do we have any answers to these questions?
Yes the only answer to this question is increasing absenteeism. Everyone is worried and tensed
due to this increasing graph of absenteeism. Everyone might be thinking that why this problem
ABENTEEISM: Its not just about remaining absent. Its all about keeping
yourself demotivated to work and showing your own weaknesses wherever your
strength is required!
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again? Yes but it has to be discussed! as this problem still exists. None of the strategy is really
working to control absenteeism completely.



Absenteeism is a habitual pattern of absence from a duty or obligation. Traditionally,
absenteeism has been viewed as an indicator of poor individual performance, as well as a breach
of an implicit contract between employee and employer; it was seen as a management problem,
and framed in economic or quasi-economic terms. More recent scholarship seeks to understand
absenteeism as an indicator of psychological, medical, or social adjustment to work.
Absent does not only mean not being at work. Absent also means:
Arriving late (or poor time keeping, if you like. It is still absent as long as the employee is not at
work.) some employees deliberately try to arrive on duty late than the scheduled time. This act is
also considered as absenteeism.
Leaving early (again, if you like, poor timekeeping. It is still absent if he is not at work)
Another form of absenteeism is making different and fake excuses to escape from full working
hours.
Extended tea or lunch breaks - the employee is not at the workstation, and therefore absent. In
this type of absenteeism, workers extend the lunch breaks intentionally.
Attending to private business during working hours - the employee is at work, but is not
attending to his/her duties in terms of the employment contract - and is therefore absent.
Extended toilet breaks - same as extended lunch or tea breaks. Always seeking excuses to escape
from the work
Feigned illness - thus giving rise to unnecessary visits to the on-site clinic, or take time off to
"visit the doctor" - which they never do, because they don't need a medical certificate for less
than 2 days off. This is the most common excuse employees use to befool the employer.
Undue length of time in fetching or carrying (tools from the tool room, for example, or drawings
from the drawing office, etc) .
There are so many types of absenteeism identified by the employers and various researchers.
Employers know that employees are making fake excuses, to leave early from workplace or to
take leaves still, they are not able to give any solution.
Absenteeism is not just the tendency of employees remaining absent from the duty in fact it
shows that somewhere or the other organization is lacking in creating the interest of the
employees. As everyone knows that if something we are interested in we really love to be in it!
Has anybody thought why people love to be at home!!!!!!!!!!!!!!!!!!!
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THERE ARE TWO TYPES OF ABSENTEEISM

1. INNOCENT ABSENTEEISM
2. CULPABLE ABSENTEEISM
Forum contributor about unions was asking about the differences between culpable and non-
culpable absenteeism and whether or not unions do anything to educate their members about
these.

In a very general sense, Culpable absenteeism means "blameworthy" absenteeism, or
absenteeism that was within the workers' ability to control. Examples of this could be things like
taking time off to do personal errands, go shopping, go fishin', being late because you can't get
up on time and things of that order. It can also mean falsifying sick claims or calling in sick
when you're really...gone fishin' or otherwise not sick.

Non-culpable or innocent absenteeism is absenteeism that is not within the workers' control.
Illness and injury are the most common examples of this kind of absenteeism.
While discipline can be, and often is, imposed for culpable absenteeism, things are not quite so
simple for the non-culpable variety.
Absenteeism exist both in private and public sector industries. People always try to find the
different reasosns for both type of industries. But they forget one thing that it is not the type of
industry that is causing absenteeism; it is the employees who are causing absenteeism. So issue is
to find the human behavior and human tendency of being absent.

This is a conceptual paper which focuses on the various previous researches and their finding
and to find out the crux of those literature and finally to come up with new concepts with an aim
to remove this curse from our industries.
Literature review
This study tries to assess different types and determinants of absenteeism among various
employees in private and public sectors. From past years many researchers have studied different
aspects of Absenteeism in various areas not only at all India level but at international level. The
various findings of past researches were of great help for the researcher to sort out the different
factors to be used in the study. This review also helped in finding out the differences between the
past researches and the current research on the same topic. Let us look at glance on the earlier
researches which focused attention on absenteeism.
Absenteeism is a cultural problem it is affected by organizational norms and traditions. It is
communicated from one to another. The absenteeism rates are similar in work crews even the
leaders who show little commitment to attendance practices had one of the highest absenteeism
It is not the matter of finding out the different causes of absenteeism in different types of
industries like public sector or private sector, in fact it is the time to look forward, to look
beyond the thoughts and to find out why people, yes why people remain absent? Whether they
are in public sector or private sector
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rates in his organization.( Robert F. allen and Micheal Higgins, 1979) The researcher tried to
investigate that out of present employees which are less likely to be absent in future. Further they
explored that past absenteeism is a good indicator to predict future absenteeism, even past job
absenteeism can indicate future or a new job absenteeism.(J ohn M. Ivansevich 1985).Author
identified the role of motivation to attend, and ability to do so can increase presenteeism and
further author explores that pressure to maintain good attendance record can lead to consequence
of loosing a job.(Eric W. Larson, Cynthia V. fukami 1985).Voluntary and involuntary
absenteeism are two different constructs, they are differently associated with different subsets
like personal and attitudinal variables, so to remove both kind of absenteeism one similar method
can not be used conclusively they should be tackled differently.(Russel W. Driver and Collin J .
Watson 1989). The another method of reducing absenteeism can be social system factors like
workplace attitude, withdrawal motives and performance behavior. Results suggested that
organizational social systems may have a potent influence on employee behavior( Robert P Steel
et.al.1990).one more determinant of absenteeism can be gender specific absenteeism. Women
tend to be more absent than men as they have the responsibility of child care, family
responsibility etc. Even all the factors responsible for absenteeism differ according to gender.
Finally the researcher concluded that women who are into jobs have dual responsibilities and so
they tend to be more absent than men.(Audrey Vanden Heuvel and Mark Wooden 1995).Stess
can also cause absenteeism in employees. Stress predict dissatisfaction and strain and this strain
due to stress is associated with absenteeism. So high level of stress results in strain and excessive
strain results in sick absenteeism.(Parl Ulleberg, Torbjosrn Rundmo1997). This research threw
lights on impact of group beliefs about absenteeism on individual absenteeism. It focused on
identifying the bases of employees beliefs about what they expect in terms of absence behavior.
Further it says that absenteeism is a result of individual level factors like negative work attitudes
but a common finding said that individual absence behavior is affected by other members in the
organization. Sometimes this social behavior of absence becoming as a norm for an individual
and is called as absence culture.(Ian. R. Gellatly et.al.1998). Financial stress is also one of the
reason for absenteeism. This research proved that employees with high level of financial stress
are likely to experience a higher level of absenteeism out of which most of the employees who
use credit cards suffer from financial stress. As a suggestion author says that financial assistance
and counseling should be given to such employees so as to reduce absenteeism in them.(J inhee
Kim et.al.2006).The another weaker side of organization that is providing a benefit to the absent
employees is PTO(paid time off) that is an ignorance towards cost of absenteeism, intention to
say that accidents and illness are not the only reasons for absenteeism there are lot other reasons
incurring both direct and indirect costs of absenteeism.( Chris Navarro, Cara Bass 2006). Various
benefits like Private Medical Insurance PMI, Health screening, employee assistance programs,
flu vaccinations or gym memberships can help reducing sick absenteeism and stops them in
converting into long term absence.(Employee benefits magazine 2007). Occupational health
personnel can also help in reducing absenteeism as OH personnel are key players in designing
programs the strategies for ensuring prevention of work related illness and accidents.(Linda
Goldman & J oan Lewis 2007). The another research focused on unscheduled absence and the
people calling last minute giving fake reasons for being absent. Even the author says that
employer taking corrective actions for absence management are not that effective for employees.
So the employers must pay attention to the demographics of their workforce and should consider
how these demographics can affect employee needs so as to reduce absenteeism.(2007). Another
research focuses on management strategies to reduce absenteeism as it can produce a culture of
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attendance. Further the researcher suggests that return to work interviews after each absence can
reduce further absenteeism. (A.B.D Maclean 2007). Another research again focused on gender
specific absenteeism as the different ways should be adopted to reduce gender specific
absenteeism. So in an organization women tend to be absent more than comparison to men and
women are more prone to sick leaves. So absenteeism rates should be calculated gender wise and
than accordingly corrective measures should be used.(Eric Patton & Gary J ohns 2007).
(Annual CCH survey Nov 2007) the paper focused on unscheduled absence and the people
calling last minute giving fake reasons for being absent. Even researcher says that employer
taking corrective actions for absence management are not that effective for employees.
Companies mostly use disciplinary action, yearly review and verification of illness etc. further
author says that organizations should adapt certain different ways to remove absenteeism.
Another cause of sick absenteeism is neck pain. It is a very common problem resulting in
absenteeism ( Pierre Cote et.al.2008). Perceived behavioral integrity of managers, if found to be
positive leads to job satisfaction and if found negative leads to absenteeism. PBI means
alignment between managers word and deeds. The positive PBI can lead to organizational
citizenship behavior and reduced absenteeism.(David J . Prottas 2008). This paper focused on
absenteeism in public sectors and says that it is high in public sector units. It focuses on certain
determinants that affect absenteeism like age, gender, seniority, wage, number of employees etc.
further it suggests one integrative model. First is individual approach that is how personal
attributes affects motivation and ability to attend work. The another one is socio- psychological
approach where absence behavior is influenced by co workers. So the absence frequency in
public departments can be determined by individual and socio psychological determinants.(Ann-
Kristina and Lokke Nielsen 2008). In this research the author tried to trigger absenteeism in
schools as the paper says that youths from 5-17 years are indulged in absenteeism resulting in
violence, suicide etc. intention mentioning this paper is that absenteeism is existing in every unit
even in schools.(Christopher A. Kearney 2008). This paper tried to find out the relation between
3 variables of organizational ethics and their relation with culpable and innocent absenteeism. It
was concluded Ethical climate, teacher tendency to misbehave and justice were related to
frequency that is culpable absenteeism and climate variable was related to duration that is
innocent absenteeism. Further the author says that if the employees have negative perception
regarding organization justice than it leads to voluntary or culpable absenteeism.(Orly Shapira-
Lishchinsky & Zehava Rosenblatt 2009). This paper focuses on Improving return to work
interview method as one of the most effective method of managing absence. Further it says that
systematic absence policy can definitely reduce absence so it concludes that effective, time and
again revised management policy can reduce absenteeism.( Nadia Williams 2009).Author tend to
predict future absence through observing current sickness absence. It concluded that employee
with long sickness absence tend to be depresses in future period and can be more absent.(mania
Melchior et.al.2009). This paper focuses on managing sickness absence with the help of
managers. Paper also says that public sector employers are well versed in managing absence
compared to private sectors, it also emphasis on giving training to line managers for managing
absence. It also says that absence is more in public sector( Nic Paton 2009).another reason for
absenteeism could be bad weather but still their should be a uniform policy and used notification
of absence as a tool to record absence, whatever may be the cause.(J oanna Bourke 2010).
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( Nadia Williams, Mar 2009), this study tried to explore attention on improving return to work
interview method as one of the most effective method to manage absence. Further it says that
systematic absence policy can definitely reduce absence. So it concludes that effective and time
and again revised policy can reduce absenteeism.
Another research, where the author tried to predict future absence through observing current
sickness absence, concluded that employees with long sickness absence tend to be depressed in
future period and can be more absent in future period. The author concluded depression as the
major cause of absenteeism.(Maria Melchior et.al Aug 2009).
Flu can be another major cause of innocent absenteeism if not taken proper steps, so authors
focused on a Flu H1n1 and its impact on employee innocent absenteeism. Health care experts
even predict a hike of 20 to 30% in absenteeism due to flu(Craig Harris2010). This paper throws
light on keeping record of absence. It says that these records help in combating absence. This
paper also proved that absenteeism is high in public sectors.(2010). Here the author says that
absenteeism is higher in public sectors. It further says that employer ignorance is one of the
reason for absence which incur a high cost (Dan Thomas 2010) In this the author tried to tell that
inequity in the relationship with the organization, with the feeling of resentment and poor
organizational commitment leads to absenteeism. Here equity in exchange relations in
organization means what the employees invest in organizational relationships and what they
receive back from those relations. Another important fact observed by author is that employees
use absenteeism and turn over as means to restore equity in relationship. So conclusively equity
in relations can reduce absenteeism.(Sabine A. Geurts et. Al. 2010)
STATEMENT OF THE PROBLEM
This paper is trying to assess the major reasons of absenteeism mentioned by the various
researchers in their studies. Absenteeism is the most frequently discussed, most researched area
but still the problem exists. So the major reason of concern is to come up with such solutions that
can actually rectify this problem and to identify this problem at root level.
FINDINGS
After considering n number of literature on absenteeism, the following findings are recognized
that indicates the reasons of absenteeism. Some causes seems to be practical and some seems to
be just an assumption. Lets have a look at the model that depicts various causes of absenteeism
mentioned by various researchers in their empirical studies.
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MODEL1

If you look at the model above you can see the various reasons increasing absenteeism. Like one
of the researcher says that absenteeism is most of the times due to poor leadership. If the leader
does not have proper leading skills than the followers can be seen indulged in absenteeism.
Another author says that in an organization there can be many reasons causing absenteeism but
the author focused on unhealthy interpersonal relations. Looking further few other reasons found
by various researchers are poor role of managers, depression, low commitment of the employees,
influence of colleagues etc. are the major causes of absenteeism.
SUGGESTIONS
After considering the views of various authors, the following suggestions and critics of the above
literature is as follows:
This is not the matter of private or public sector absenteeism because it is not the industry
indulged in absenteeism in fact it is the people who are indulged in absenteeism,so one has to
focus on employees rather than the type of organization. So very first the issue is to understand
human psychology.
If house have an infrastructure, than organization also have the same. If house have people to
interact with than organization also have. If house needs support of the members than
causesof
absenteeism
poorleadership
percieved
behavioural
index
gender
absenteeism
past
absenteeism
predicting
future
absence
influencedby
coworkers
unsystematic
absencepolicy
roleofline
managers
absencedueto
depression
employer
ignorance
poor
organizational
commitment
unhealthy
relations
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organization also needs the same. But still people love to be at home but do not like to be at
workplace. It is not only about leaders or employer causing absenteeism but also the thought of
employees. So it is just useless to only blame policy, leader or manager, we need to look at other
areas like reason of employee demotivation towards work, disliking for work, lack of affection
and seriousness towards work, reasons for depression etc.
What can we do to combat absenteeism? Something new and very practical. Let us consider this
model:
MODEL2


Why to wait after the absenteeism occurs. Why not control it at the root level:
1) AT INTERVIEW LEVEL: Asking certain questions at the time of interview which can
help to identify the interest of the person. At this level if we are able to identify the
interest of the candidate than we can give the work accordingly. After getting the work
according to interest the candidate would love to come to the work.
2) AT FRESHER LEVEL: once the candidate enters the organization, try to find its
potential from very beginning leaving behind the concept of seniority and juniority. If the
waysto
combat
absenteeism
atinterviewlevel
atfresherlevel
atexperienced
level
atpromotional
level
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employee will be recognized from the very first day, it will motivate the candidate to
work. Thus decreasing absenteeism
3) AT EXPERIENCED LEVEL: once the person becomes older to the organization,
employer stop paying attention at them. Matter of concern is basic human behavior. So
one should take care of the employee at every level.
4) AT PROMOTIONAL LEVEL: when the time comes for promotions. Employees start
forming strategies to impress the management. Instead of short term impression,
employer should take care of past performances and go for genuine promotions. This
environment will let employees know that working really matters!
Some other ways to manage absenteeism are depicted in model below:
MODEL 3

MY FAMILY: always people talk about industrial absenteeism. Nobody talks about home
absenteeism. The reason is that everyone loves to be with their family. So there is no such
absenteeism called as family absenteeism. So just one endeavor towards making organizational
climate just like the climate of the home, than nobody will feel remaining away from this family
(organization) also.
waysto
reduce
absenteeis
m
My
Family
MyRights
My
Obligations
Altruism
My
colleagues
My
Genuinity
MyZeal
My
Caretaker
My
values
My
commitment
My
career
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MY RIGHTS: employee must get their rights and employer must also work for its employees in
the same direction. This effort will give rise to organizational commitment and will be an
important role player in decreasing absenteeism.
MY OBLIGATIONS: if the employees talk about their rights, they should also understand their
responsibilities towards the organization. Employers can also counsel the employees to make
them understand their obligations. This will give rise to strong connection between them.
ALTRUISM: this behavior of all the people working in an organization can definitely lead to
good attendance of employees.
MY COLLEAGUES: if the relations are healthy among the employees or overall interpersonal
relations are good in the organization, it can give rise to good attendance as people will start
calling colleagues as my colleagues
MY GENUINITY: my conscious is still alive. If this applies to you also than before taking
leaves without any genuine reason always ask your inner conscious are you really faithful to
your organization? If everyone start asking this question to self, no one will love to lose their
genuinity
MY ZEAL: once the employees are able to develop a zeal to work, they will never think of
being absent without reason. Therefore the employer must be an excellent positive motivator.
MY COMMITMENT: Humans are always committed to their loved ones, then why not the
organization, which is actually giving you the monetary power to take care of the family. Once
the employees start loving the organization, naturally they will be committed towards it.
MY CARETAKER: let the boss become the real care taker of the employees and than see
wether the absenteeism increases or decreases.
CONCLUSION
It can be simply concluded that regarding absenteeism if one talks to employees they will blame
employers and if one talks t employees they will blame employer, than who is the actual culprit.
Either both or no one! Only one thing is required to understand ones own responsibilities, Very
first as a human being and secondly as an employee. Further it can be concluded that it is not the
organization creating absenteeism, actually it is the person creating it whether in public or
private organization. So above all it is human behavior that needs to be changed through
counseling and other methods mentioned in this paper that can definitely bring a change.
REFERENCES
Audrey Vanden Heuvel and Mark Wooden 1995
J oanna Bourke 2010).
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Nic Paton 2009
Parl Ulleberg, Torbjosrn Rundmo1997
Robert P Steel et.al.1990
Russel W. Driver and Collin J . Watson 1989
A.B.D Maclean 2007
Ann- Kristina and Lokke Nielsen 2008
Annual CCH survey Nov 2007
Christopher A. Kearney 2008
Craig Harris2010
Dan Thomas 2010
David J . Prottas 2008
Employee benefits magazine 2007
en.wikipedia.org/wiki/Absenteeism
Eric Patton & Gary J ohns 2007
Eric W. Larson, Cynthia V. fukami 1985
H:\latest absenteeism\Management Strategies to Curb Absenteeism.mht
http://ehstoday.com/health/wellness/manufacturers-workplace-absenteeism-flu-season-6454/
http://www.kcprofessional.com/us/download/Product%20Literature/ABSENT_MFG.html
Ian. R. Gellatly et.al.1998
J inhee Kim et.al.2006 Chris Navarro, Cara Bass 2006
J ohn M. Ivansevich 1985
Linda Goldman & J oan Lewis 2007
mania Melchior et.al.2009
Maria Melchior et.al Aug 2009
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Nadia Williams 2009
Nadia Williams, Mar 2009
Orly Shapira- Lishchinsky & Zehava Rosenblatt 2009
Pierre Cote et.al.2008
Robert F. allen and Micheal Higgins, 1979
Sabine A. Geurts et. Al. 2010)
www.referenceforbusiness.com

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
THE PRIVATIZATION OF PROFESSIONAL
EDUCATION SECTOR IN PUNJAB: AN ANALYSIS

DR. SAPNA SHARMA*

*Assistant Professor in Economics,
G.G.D.S.D. College, Hariana, Hoshiaprpur.

ABSTRACT

The study primarily deals with the growing private initiative in the professional
education sector in Punjab. The over-all analysis shows that more than eighty seven
per cent of the colleges/institutes supplying professional higher education in the state
were under private ownership. The study suggests the massive involvement of public
resources in order to ensure wider access and equity in professional higher
education in the state.
______________________________________________________________________________

1. INTRODUCTION
Economic development is the greatest challenge faced by the human race. A countrys
development potentials are greatly dependent upon (i) the physical resource endowments (land,
minerals, and other raw materials); (ii) the human resources (people and their level of skills); and
(iii) the technological progress/spillovers (Todaro, 1985). Mainstream growth economists are of
the opinion that, without developing human resources of a country, economic development,
particularly in the long run can not become self sustaining (Lucas, 1993; Benhabib and Spiegel,
1994; Barro and Sala-i-Martin, 1995; Barro, 2001; Krueger and Lindahl, 2001). And, developing
human resources of a country means raising the skills, knowledge and productive capacity of the
human beings as well as of the whole society.
This has brought out the role of higher professional education and trained manpower at
the zenith. In fact, all those countries, who had emphasized on human capital formation in the
past, have achieved high growth trajectory in their national income and per capita income
(OECD/UNESCO, 2002). A long time ago, the Cambridge Economist, Alfred Marshall also
observed that, although the natures production system is subject to decreasing return, yet mens
skills and knowledge have the capacity to generate increasing returns (Marshall, 1920). Higher
professional education includes the process of preparing the people for participation in political
process and helping them to lead fuller and richer lives (Powar, 2001).
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Higher professional education provides a sound economic foundation to those countries
which are the latecomers to the economic development. In the quest of development, although
the primary education is absolutely essential because it creates the base, yet the higher
professional education is so important because it provides the cutting edge to the developing
economies (National Knowledge Commission, 2006). Further, it is also true that many new
inventions and innovations of the 20
th
century, when applied to the production processes, had
realized this possibility into the reality. This was largely due to wide spread application of many
epoch making technological developments invented by the new research and technology. And,
higher professional education seems to be at the central point of these developments by creating,
preserving and transferring of skills/knowledge from one generation to another generation and
from one region/nation to another region/nation that can be helpful to achieve a better life and an
ambitiously equitable world for all (National Knowledge Commission, 2006).
1.1 PROFESSIONAL EDUCATION: MEANING AND MAIN CONTOURS
In a rapidly evolving economy/society, it is not easy to give precise meaning of the words
profession and professional, what to speak of the professional education. All these words
elude a precise definition also. For a very long time ago, there were only three recognized
learned professions in the western countries, namely, (i) theology; (ii) law; and (iii) medicine.
These three professions were found to be having a great deal of prestige. And, all those persons
who acquired and trained in these professions were highly prized persons and zealously guarded
(J arvis, 1983). In the subsequent time periods, the engineering and architecture disciplines were
also added to the list of professions. Along with these recognized professions, there are now
numerous callings which demand disciplined, learned and scholarly training, and the word
profession has come to be attached with these occupations also (J arvis, 1983 and
www.education.nic.com). For instance, dentistry, journalism, librarianship, forestry, nursing and
teaching are some of the callings to which the status of profession is generally conceded in the
mature societies. Further, many new professions are being added to this list and the list is by no
means completed.
It may be largely due to the reason that the words profession and professional cease to
be associated with any specific callings. But, instead of this, any man/woman who prepares
himself/herself for an exacting service through a comprehensive, disciplined scholarship and
training or who lives and works in the spirit of professional standards may well be recognized as
a member of that profession. Also, the day is not far away, when any business or other exacting
and specific calling can claim the respect and protection of society except in so far as it lives and
operates by professional standards. In simple words, higher professional education is that
education process by which men and women prepare themselves for exacting, disciplined and
responsible service in the professional spirit. The term may be restricted to preparation for the
fields requiring well-informed, disciplined insights and skills of a higher order. And, the persons
prepare for less exacting science may be designated as the vocational or technical educators
(J arvis, 1983).
In the past many years, many newer institutions, such as medical/technological
universities, professional institutes/colleges, and polytechnics have been come into existence to
meet industry/societal needs for technically qualified manpower. This has given significant
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importance to the specialists/professionals. A professionally qualified person is expected to do
job/work that needs a high level of education, skills and training like the doctors, engineers,
lawyers, architects, teachers, and other categories of professionals. Professional education is,
therefore, a part of higher education system that qualifies the recipients for a particular
profession. It refers to that type of higher education that imparts a special training or a particular
type of skills/knowledge (marketable expertise), which is respected because it involves a high
level of expertise, employability and earnings (Ghuman, Singh and Brar, 2009).
In nutshell, higher professional education is defined as that part of higher education
system of a country which imparts specialized training, generates better skills and initiates new
learning processes among the novices. This type of professional education is to be found in the
case of doctors, engineers, lawyers, teachers, etc. Professional education is, thus, defined/used to
notify all those education processes which train the recipients with quality of organizational
ability, effectiveness, and seriousness of the matter/problem. In fact, professional education
integrates the knowledge, skills and career proficiencies with academic contents; and prepares
novices for better work, further education, expert training, family and community roles, etc.
1.2 PROFESSIONAL HIGHER EDUCATION AND DEVELOPMENT
Many studies conducted by the social scientists in India or elsewhere have shown that a
country remains backward or underdeveloped so long as her people remain deprived of higher
professional education (World Bank, 2002; Tilak, 2004b). Indias Planning Commission, while
formulating different Five Year Plans, stressed upon the significance of higher education,
particularly the professional education because this sector alone has emerged as the most
important single factor for bringing economic development and social emancipation of
individuals and society. Also, the Report of Education Commission (1964-66) popularly known
as Kothari Commission, indeed, displays the key role of higher education in economic and social
development of India (Government of India, 1966). The Punnayya Committee (1993) appointed
by the University Grants Commission of India has summarized the role of higher education in
three ways: (i) as an essential input for meeting the manpower requirements of important and
critical areas of national development and for integrating the national efforts to develop human
resources; (ii) as a critical input to ensure social justice and equity by providing upward mobility
and access to higher levels of economic and social activities, particularly for the students
belonged to weaker sections of society; and (iii) as an important input for improving the quality
of life by making higher levels of knowledge to the wider population base and for preserving our
cultural heritage (Punnayya Committee, 1993).
1.3 OBJECTIVES OF STUDY
Main Objective of present paper is to examine the growing private initiative in the professional
education in Punjab. The specific objectives of this paper are:
to assess the growing importance of private sector in the professional higher education in
the state;
to analyze the status of professional higher education sector in Punjab on the various
basis such as courses, affiliation and ownership.
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to make policy recommendation with regard to the costs of professional education in the
state.
1.4 COURSES SELECTED FOR THE ANALYSIS
To get the clear picture of the professional higher education sector in Punjab, the study
selected eleven courses which was the attraction of the students of the state. In Medical Stream
they are: Medical; Dental; Ayurvedic; Homeopathic; Physiotherapy; and Nursing. However, in
technical stream they are: Engineering; Architecture; MBA/MCA; AND Pharmacy. Being an
important category of professional education due attention has also be given to Law course.
1.5 DATA SOURCES
The study is primarily based upon the secondary data sources were also assessed
wherever needed. The secondary data were gathered from the published (annually and
periodically) and unpublished sources. Major published sources of data were various issues of
the Statistical Abstract of India, Statistical Abstract of Punjab, Economic Survey of India,
Economic Survey of Punjab, Analysis of Budget Expenditure of India, Budgetary Documents of
Higher Education in India, population Census Reports, Social Statistics of Punjab, Web Sites of
Higher Education of India/Punjab, Offices of Department of Education of Punjab and many
research studies/reports. Some Secondary data, in unpublished form, was collected from the
Office Files of the Economic Advisor; Director, Punjab Instructions (Colleges); Director, Punjab
Instructions (Senior Secondary School); Hand Book of Information or Prospectus all the
Universities of Punjab.
1.6 TIME PERIOD
The time period selected for secondary data ranges from 1970-71 to 2005-2006. As far as
the data regarding the course, affiliation, and ownership of institutions of higher education of the
state were concerned, study has taken their year of establishment, even before 1971.
2. PROFESSIONAL EDUCATION SECTOR IN PUNJAB: GROWING PRIVATE
INITIATIVE
2 .1 PROFESSIONAL EDUCATION
The significance of higher professional education in managing the economy, creating
new knowledge and raising skills of workforce is well documented in economic literature
(Ghuman, Singh and Brar, 2009). In fact, it empowers the novices for highly skilled jobs and
favours them to get premium income avenues. Professional education of higher variety has,
therefore, become sine qua non for the generation, absorption, preservation, application and
dissemination of knowledge (Ghuman, Singh and Brar, 2009). Earlier, three traditional state
universities of Punjab were training the students in professional education courses through their
campus departments and affiliated colleges. At that time, there was no exclusive professional
university in the state and all the colleges of professional variety were affiliated to these three
universities, i.e. Panjab University, Chandigarh; Punjabi University, Patiala; and Guru Nanak
Dev University, Amritsar. Punjab Agricultural University, Ludhiana is also providing certain
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professional courses related to the agricultural sciences like the agricultural engineering and agri-
business management. In recent years, state government has taken many bold steps to diversify
professional education in Punjab state to fulfill the rising demands of technically and
professional trained manpower at the national/global levels.
At present, Punjab has seven universities (including the deemed one) providing
professional education courses of many varieties. Punjab Technical University (PTU), J alandhar
(1997) and Baba Farid University of Health Sciences (BFUHS), Faridkot, (1998) are affiliating
universities. These were established exclusively to develop professional education courses
related to the technical and medical sciences respectively. Thapar University, Patiala (earlier an
engineering college) has acquired the status of a Deemed University during the year 2000. Now,
it has acquired the status of a full-fledged university and managed by the famous Thapar Group
of Industries (India) in the field of technical education. Two new Universities Guru Angad Dev
Veterinary and Animal Sciences University, Ludhiana (carving out by taking over the
department of Veterinary and Animal Sciences of Punjab Agricultural University, Ludhiana) and
Rajiv Gandhi National University of Law, Patiala were established in 2006 and are still at the
stage of infancy. Another self-financing private university - Lovely Professional University at
J alandhar- has come into existence in 2006-07. Further, Sant Longowal Institute of Engineering
and Technology (SLIET), Longowal (District Sangrur) has acquired the status of deemed-to-be-
university in 2007. All the six universities excluding the SLIET were established under the state
legislative statutory acts passed from time to time. These steps highlighted the emerging
significance of professional education courses in the state. These universities mostly provide
graduate/postgraduate level professional education courses and research as per the requirements
of the state, national and global economies. Almost all these universities are functioning as the
autonomous bodies. However, the state universities of professional variety are highly dependent
upon the state finances for yearly budgetary expenditure and are facing severe resource crunch
largely due to the progressive cuts in allocation of state funds since the 1990s (Ghuman, Singh
and Brar, 2009).
2.2 OVERALL POSITION OF PROFESSIONAL EDUCATION
COLLEGES/INSTITUTES, 1971-2005
The data (Table 2.2.1) on number of colleges/institutes affiliated to these universities
show that a significant growth, at least, in terms of number of professional colleges/institutes has
occurred very recently in Punjab. Looking at the total number of these colleges/institutes
revealed that there were just 13 recognized colleges in 1971 which increased to 19 colleges in
1991 an addition of six colleges in the two decades (1971-1991). After the 1991, many new
professional colleges/institutes were established and their number increased from 19
colleges/institutes in 1991 to 106 colleges/institutes in 2001 and to 184 colleges/institutes by the
end of 2005. This shows an addition of 165 colleges/institutes in the 15 years time period. If one
examined the overall growth of professional colleges/institutes in the state, it was found that the
number of professional colleges/institutes in the state jumped up by more than 14 times during
1971-2005 and about 10 times during 1991-2005. Further, leaving aside the medical colleges,
number of colleges belonging to other streams like Engineering, MBA/MCA, Pharmacy,
Architecture, Dental, Ayurvedic, Nursing, Physiotherapy, etc had increased, particularly during
the last one and a half decades (1991-2005).
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TABLE 2.2.1: DISTRIBUTION OF PROFESSIONAL EDUCATION
COLLEGES/INSTITUTES IN PUNJAB BY COURSE AND AFFILIATING
UNIVERSITY, 1971-2005
College/Institute 1971# 1981# 1991# 2001 2005
Baba Farid University of Health Sciences
Medical 4
(30.76)
5
(29.42)
5
(26.31)
6
(5.66)
6
(3.26)
Dental 2
(15.39)
2
(11.76)
2
(10.53)
9
(8.49)
11
(5.98)
Ayurvedic 2
(15.39)
3
(17.65)
4
(21.05)
9
(8.49)
11
(5.98)
Homeopathic 0
(0.00)
1
(5.88)
2
(10.53)
5
(4.72)
5
(2.72)
Physiotherapy 0
(0.00)
0
(0.00)
0
(0.00)
3
(2.83)
8
(4.35)
Nursing 2
(15.39)
3
(17.65)
3
(15.79)
8
(07.55)
15
(08.15)
Sub-Total 10
(76.92)
14
(82.35)
16
(84.21)
40
(37.73)
56
(30.43)
Punjab Technical University
Engineering 2
(15.39)
2
(11.76)
2
(10.53)
25
(23.58)
48
(26.09)
Architecture 0
(0.00)
0
(0.00)
0
(0.00)
2
(1.88)
7
(3.80)
MBA/MCA 1
(7.68)
1
(5.88)
1
(5.26)
26
(24.53)
42
(22.83)
Pharmacy 0
(0.00)
0
(0.00)
0
(0.00)
11
(10.38)
18
(09.78)
Sub-Total 3
(23.08)
3
(17.65)
3
(15.79)
64
(60.38)
115
(62.50)
Other Universities *
Law 0
(0.00)
0
(0.00)
0
(0.00)
2
(1.89)
13
(7.07)
Grand Total 13
(100.00)
17
(100.00)
19
(100.00)
106
(100.00)
184
(100.00)
#in these years, all professional colleges were affiliated to the Other Universities* of Punjab.
* Other Universities here mean Panjab University, Chandigarh; Punjabi University, Patiala; and
Guru Nanak Dev University, Amritsar.
Figures in parentheses are percentages.
Source: (1) www.babafariduni.com
(2) www.aicte.ernet.in
(3) www.ptu.ac.in
(4) Offices of Dean, Colleges Development Council, 2007-08 (Respective Universities).
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Due to the growing number of these colleges, the structure of professional education has
changed dramatically in the state. In 1971, medical colleges formed 30.76 per cent share of total
number of professional colleges in the state, followed by the Dental, Ayurvedic, Nursing,
Engineering (15.39 per cent each) and the MBA/MCA courses (7.68 per cent). In 2005, the
Engineering colleges constituted the highest proportion (26.09 per cent), followed by
MBA/MCA (22.83 per cent); Pharmacy (9.78 per cent); Nursing (8.15 per cent); Law (7.07 per
cent); Dental and Ayurvedic (5.98 per cent each) colleges. On the other side, the Homeopathic
colleges had the least share of 2.72 per cent only of total colleges/institutes. The percentage share
of the rest of streams was as follows: Medical colleges (3.26 per cent); Architecture colleges
(3.80 per cent); and Physiotherapy colleges (4.35 per cent).
2.3 GOVERNMENT OWNED PROFESSIONAL COLLEGES/INSTITUTES, 1971-2005
It is interesting to note that in the case of higher professional education colleges, two
types of ownership government and unaided private prevailed in the state during initial years.
The data in Table 2.3.1 provide that, in 1971, there were eight government owned professional
colleges (One engineering and seven medical colleges) in the state. Further, just one government
Medical college was added during the decade of 1971-1981 and their number rose to eight
colleges. And, no government college was added in the other types of medical science courses
since the 1981. This is really a matter of worry for the people of Punjab. Interestingly, no
government college existed in the case of Homeopathic, Physiotherapy, MBA/MCA, and Law
courses. On the Engineering front, however, the situation seems to have improved after the 1991,
when eight new Engineering colleges in the public sector were opened and their number rose to
nine colleges in 2005. Further, four Pharmacy colleges were affiliated to the PTU during the
decade of 1991-2001.
A perusal of the data in Table 2.3.1 revealed that during 2005, the government owned
engineering colleges in Punjab formed the highest proportion of 42.86 per cent of all the
government professional colleges of the state, followed by the Pharmacy colleges (19.05 per
cent) and the Medical colleges (14.29 per cent). The proportionate share of rest of colleges was
as follows: Dental and Nursing colleges (9.52 per cent each) and Ayurvedic colleges (4.76 per
cent). However, the share of Homeopathic, Physiotherapy, Architecture, MBA/MCA and Law
was nil as no affiliated government college was established for these courses. Indeed, it is
interesting to observe that the state owned Medical Colleges in Punjab situated at Patiala,
Amritsar and Faridkot - are facing de-recognition threat by the Medical Council of India because
of shortage of faculty and insufficient infrastructure (Singh and Singh, 2008). This is the zenith
of apathetic attitude of the state government towards higher professional medical education.




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TABLE 2.3.2: DISTRIBUTION OF GOVERNMENT PROFESSIONAL
COLLEGES/INSTITUTES IN PUNJAB BY COURSE AND AFFILIATING
UNIVERSITY, 1971-2005
Institutions 1971# 1981# 1991# 2001 2005
Baba Farid University of Health Sciences
Medical 2
(25.00)
3
(33.34)
3
(33.34)
3
(15.00)
3
(14.29)
Dental 2
(25.00)
2
(22.22)
2
(22.22)
2
(10.00)
2
(9.52)
Ayurvedic 1
(12.50)
1
(11.11)
1
(11.11)
1
(5.00)
1
(4.76)
Homeopathic 0
00.00)
0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
Physiotherapy 0
00.00)
0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
Nursing 2
(25.00)
2
(22.22)
2
(22.22)
2
(10.00)
2
(9.52)
Sub-Total 7
(87.50)
8
(88.89)
8
(88.89)
8
(40.00)
8
(38.09)
Punjab Technical University
Engineering 1
(12.50)
1
(11.11)
1
(11.11)
8
(40.00)
9
(42.86)
Architecture 0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
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MBA/MCA 0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
Pharmacy 0
(0.00)
0
(0.00)
0
(0.00)
4
(20.00)
4
(19.05)
Sub-Total 1
(12.50)
1
(11.11)
1
(11.11)
12
(60.00)
13
(61.91)
Other Universities *
Law 0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
0
(0.00)
Total 8
(100.00)
9
(100.00)
9
(100.00)
20
(100.00)
21
(100.00)
#in these years, all professional colleges were affiliated to the Other Universities* of Punjab.
* Other Universities here mean Panjab University, Chandigarh; Punjabi University, Patiala; and
Guru Nanak Dev University, Amritsar.
Figures in parentheses are percentages.
Source: (1) www.babafariduni.com
(2) www.aicte.ernet.in
(3) www.ptu.ac.in
(4) Offices of Dean, Colleges Development Council, 2007-08 (Respective Universities).
2.4 UNAIDED PRIVATE PROFESSIONAL COLLEGES/INSTITUTES, 1971-2005
It is largely true that, under the new economic policy dispensation, the private
entrepreneurs have entered into the higher professional education sector of the state. In fact, the
state governments inability to spare large amount of public funds to develop professional
education in state sector has created good space for the private entrepreneurs to enter in the
provisioning of such education. The ownership status of colleges/institutes indicates that the
private sectors initiative in establishing higher professional education colleges has gained more
importance. The data shows (Table 2.4.1) that the number of professional colleges/ institutes
under private ownership has increased marginally during the two decades of 1971-1991. In 1971,
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state had just six colleges/institutes in private sector which rose to eight colleges/institutes in
1981 to nine colleges/institutes in 1991. Thus, in the pre-reform period, growth of these
colleges/institutes was scanty.
However, after the 1991, the picture has totally changed as the private entrepreneurs
entered the professional education sector like a storm and, in fact, overpowered it. And, after
the 1991, 77 new colleges/institutes were opened by the private players, i.e. about 8.8 times
increase in one decade (1991-2001). Further, 77 new colleges/institutes were added in the list of
private sector and their total number rose to 163 colleges/institutes; showing an astonishing
growth in the five years (2001-05). Thus, the analysis clearly pointed out that, after the
introduction of economic reforms, the private sectors grip in providing professional education
courses became much stronger compared to the government sector. It highlighted the failure of
public higher professional education in the state.
TABLE 2.4.1: DISTRIBUTION OF PRIVATE PROFESSIONAL
COLLEGES/INSTITUTES IN PUNJAB BY COURSE AND AFFILIATING
UNIVERSITY, 1971-2005
Institutions 1971# 1981# 1991# 2001 2005
Baba Farid University of Health Sciences
Medical 2
(40.00)
2
(25.00)
2
(20.00)
3
(3.49)
3
(1.84)
Dental 0
(0.00)
0
(0.00)
0
(0.00)
7
(8.14)
9
(5.52)
Ayurvedic 1
(20.00)
2
(25.00)
3
(30.00)
8
(9.30)
10
(6.13)
Homeopathic 0
(0.00)
1
(12.50)
2
(20.00)
5
(5.81)
5
(3.08)
Physiotherapy 0
(0.00))
0
(0.00)
0
(0.00)
3
(3.49)
8
(4.91)
Nursing 0
(0.00)
1
(12.50)
1
(10.00)
6
(6.98)
13
(7.97)
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Sub-Total 3
(60.00)
6
(75.00)
8
(80.00)
32
(37.21)
48
(29.45)
Punjab Technical University
Engineering 1
(20.00)
1
(12.50)
1
(10.00)
17
(19.77)
39
(23.93)
Architecture 0
(0.00)
0
(0.00)
0
(0.00)
2
(2.32)
7
(4.29)
MBA/MCA 1
(20.00)
1
(12.50)
1
(10.00)
26
(30.23)
42
(25.77)
Pharmacy 0
(0.00)
0
(0.00)
0
(0.00)
7
(8.14)
14
(8.59)
Sub-Total 2
(40.00)
2
(25.00)
2
(20.00)
52
(60.47)
102
(62.58)
Other Universities *
Law 0
(0.00)
0
(0.00)
0
(0.00)
2
(2.32)
13
(7.97)
Total 5
(100.00)
8
(100.00)
10
(100.00)
86
(100.00)
163
(100.00)
#in these years, all professional colleges were affiliated to the Other Universities* of Punjab.
* Other Universities here mean Panjab University, Chandigarh; Punjabi University, Patiala; and
Guru Nanak Dev University, Amritsar.
Figures in parentheses are percentages.
Source: (1) www.babafariduni.com
(2) www.aicte.ernet.in
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(3) www.ptu.ac.in
(4) Offices of Dean, Colleges Development Council, 2007-08 (Respective Universities).
The proportionate share of private professional colleges/institutes by courses stated that
the MBA/MCA (25.77 per cent) and Engineering (23.93 per cent) colleges/institutes were
holding the maximum share of 163 private colleges/institutes in 2005. On the other hand, the
percentage share of rest of trades was as follows: Medical (1.84 per cent); Homeopathic (3.08
per cent); Architecture (4.29 per cent); Dental (5.52 per cent); Ayurvedic (6.13 per cent); Law
and Nursing (7.97 per cent); and Pharmacy (8.59 per cent) in 2005.


3. POLICY IMPLICATIONS
In summing up, it emerges that the maximum growth of affiliated colleges providing higher
professional education had been witnessed after the introduction of new economic policy 1991,
particularly after the establishment of the PTU (1997) and the BFUHS (1998) in the state. In the
earlier period (1971-1991), very limited number of colleges was added to cater the rising needs
of society for professional education. Earlier, large numbers of students were moving to other
states, particularly to the Karnataka and Maharashtra in search of technical and professional
courses. Following the state policy changes of the late 1990s, these universities also liberalized
the affiliation regimes and allowed private sector to enter professional education courses in a big
way along with diversified and innovative courses in the state. In fact, private entrepreneurs have
captured almost the whole of professional education in the state. More than four-fifth of colleges
affiliated to the BFUHS and the PTU were owned by the private sector and financed through the
high fees and funds charged from students.
BIBLIOGRAPHY
Benihabib, J . and M. M. Spiegel (1994), The Role of Human Capital in Economic
Development: Evidence from Aggregate Cross-Country and Regional U.S. Data, J ournal of
Monetary Economics, Vol. 34 (2), pp. 143-174.
Barro, R.J . and Sala-i-Martin, X. (1995), Economic Growth, McGraw-Hill, New York.
Barro, R.J . (2001), "Human Capital and Growth", American Economic Review, Vol. 91 (2), pp.
12-17, Papers and Proceedings.
CSO (1967), Statistical Abstract of India, Government of India, New Delhi.
CSO (2008), Statistical Abstract of India, Government of India, New Delhi.
CSO (2008), Economic Survey, Government of India, New Delhi.
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CSO (2008), Statistical Abstracts of Punjab, Government of Punjab, Chandigarh.
DPI Colleges (2008), Office of DPI Colleges, Government of Punjab, Sector 17, Chandigarh.
DPI Senior Secondary School (2008), Office of Senior Secondary School, Government of
Punjab, Sector 17, Chandigarh.
Ghuman, R.S., Sukhwinder Singh and J .S. Brar (2009), Professional Education in Punjab:
Exclusion of Rural Students, Publication Bureau, Punjabi University, Patiala.
Government of India (1966), Report of the Education Commission (1964-1966), Education and
National Development, New Delhi.
Government of India (1986) and POA. (1990), National Policy on Education 1986 and 1990,
Ministry of Human Resource and Development, New Delhi.
Government of India (1997), Government Subsidies in India, Ministry of Finance, New Delhi.
Government of India (2008), Economic Survey 2007-08, Oxford University Press, New Delhi.
Government of India (2010), Economic Survey 2009-10, Oxford University Press, New Delhi.
Government of Punjab (2002), Punjab Education Policy 2002 and Programme of Action,
Education Department Punjab, Chandigarh.
J arvis, P. (1983), Professional Education, Croom Helm Ltd., Backenham Kent. Available at
www.education.nic.com
Krueger, A.B. and Lindahl, M. (2001), Education for Growth: Why and for Whom?, J ournal of
Economic Literature, Vol. 39 (4), pp. 1101-1136.
Lucas, R.E. J r. (1993), "Making a Miracle", Ecorometrica, Vol. 61 (2), March, pp. 251-272.
Marshall, A. (1920). Principles of Economics, Eighth Edition, Macmillan Publishers, London.
National Knowledge Commission (2006), Notes on Higher Education.
Powar, K.B. (2001), Internationalization of Indian Higher Education, AIU, 16, Kotta Marg, New
Delhi.
Punnayya Committee Report (1993), UGC Funding of Institutions of Higher Education,
University Grant Commission, New Delhi.
Todaro, M.P. (1985), Economic Development in Third World, Orient Longman Ltd., New Delhi.
UNESCO (2002), Financing Education-Investments and Returns, Analysis of the World
Education Indicators, Paris, United Nations Educational, Scientific and Cultural Organization
www.unesco.org
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World Bank (2000), Higher Education in Developing Countries: Peril and Promise, Washington,
D.C.
WEBSITES REFERENCES
www.babafariduni.com
www.aicte.ernet.in
www.ptu.ac.in
www.gcrio.org/ipcc/techrepl/appendixe.html
www.blue-mountain.net/feed/terminology
www.businessdictionary.com/capitalcost
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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
ASSESSMENT OF JOB SATISFACTION AND
H R PRACTICES: A CASE STUDY FOR NURSING STAFF

SAROJ B. PATIL*; DR. P.T. CHOUDHARI**

*Research Scholar, North Maharashtra University,
J algaon, India.
**M. J . College, J algaon,
Maharashtra, India.

ABSTRACT

Job Satisfaction is one of the most widely researched subjects in the area of
Organizational Behavior and Human Resource Management. Job Satisfaction is
considered as an evaluation that the employees makes of the job and environment
surrounding the job. It is also defined as the feelings an employee has about the job
in general. This study is intended to examine the level of job satisfaction and explore
for nurses in private hospitals and government hospital in Jalgaon District,
Maharashtra, India. While there are many studies conducted on satisfaction and
overall working environment worldwide, no study was found to examine this topic in
private and government hospitals in India.

KEYWORDS: Job satisfaction, Human Resource management.
______________________________________________________________________________
I. INTRODUCTION
In the recent days hospitals are confronting great competition and resources than ever before.
They are also challenged by the external and internal working environment to achieve their goals
effectively and efficiently. Nurses played an important role in maintaining the quality and cost of
healthcare.
1
Nurse is almost the first association comes to mind when we say Doctor. While
doctors are considered to be highly qualified professionals then nurses, nurses are given an
almost secondary status. Issues such as job satisfaction and organizational working environment
of nurses are of paramount importance for administrator in health organization. Nurses job
satisfaction and organizational working environment are found to be influence hospital
reputation and service quality. Researchers have generally found that satisfied employees are
more productive and committed to their jobs, whereas dissatisfied ones experience absenteeism,
grievances and turnover.
2
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J ob Satisfaction is one of the most widely researched subjects in the area of Organizational
Behavior and Human Resource Management. J ob Satisfaction is considered as an evaluation that
the employees makes of the job and environment surrounding the job. It is also defined as the
feelings an employee has about the job in general. This study is intended to examine the level of
job satisfaction and explore for nurses in private hospitals and government hospital in J algaon
District, Maharashtra, India. While there are many studies conducted on satisfaction and overall
working environment worldwide, no study was found to examine this topic in private and
government hospitals in India. Therefore, the purpose of this study is to bridge this gap and
provide answers to the following questions:
To what extent are nurses are satisfied with their jobs?
What extent are nurses working environment is given in their hospitals to nurses?
What is the relationship amongst nurses?
To what degree do demographics factors influence nurses satisfaction and working
environment?
II. LITERATURE REVIEW
The topic of job satisfaction was first given by Hoppock(1935), Elton Mayo and his associates
were conducting a series of social experiments called the Hawthorne Studies. These studies
showed that human-relationship and interactions at work are important motivators and that
motivation to work was not wholly economic. This led to the human relationship movement in
the industry. Hoppocks work inspired a large number of job satisfaction studies typically with
job satisfaction as a dependent variable studied as a function of demographic variables.
3
The
Hawthorne studies, job satisfaction and working environment to employing organizations have
received a great deal of attention from the practitioners. This is largely due to their significant
impact on organization and individual behaviors. It was found that employee attitudes towards
satisfaction and working environment are indicators to the solidarity between organization
members and management.
1
J ob satisfaction is widely researched and researchers vary in their
definitions to the concept. Smith
2
defines it as the feelings of individuals about their jobs. The
Knoop
4
stated that it refers to an employee general attitude towards the job or some dimension of
it. Cumbey and Alexander
5
considered it as an effective feeling that depends on the interaction
of employees, their personal characteristics, and expectations with the work environment, and
the organization. In 1964, Vroom Proposed the expectancy theory in which was nested a theory
of job satisfaction. Vroom asserted that it was the expectation of what was to come that
determined J ob Satisfaction. Besides expectancy theory there appeared need fulfillment theory,
equity theory, goal setting theory intrinsic motivation theory and even behavioral theory.
Researchers also became interested in constructs collateral with job satisfaction like job
involvement and organizational commitment. Even as Hertzberg and Vroom Emphasis theory
testing, applied psychologist did not neglect the study of job satisfaction was studied `as a
demographics variables, performance, and comparison level, need fulfillment and personal
environment etc.
6
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Researchers have shown that job satisfaction or dissatisfaction leads to a number of
consequences.
2,4,7
satisfaction leads to more productivity, high quality of care and intent to
remain in the organization. On the other hand, job dissatisfaction was found to increase
absenteeism, turnover, high stress, and grievances.
2
The antecedent of job satisfaction is also
examined by a number of studies. One of surrounding studies is this regard is Herzbergs two
factor theory of job satisfaction . He distinguish between factors leading to satisfaction and those
leading to dissatisfaction of the factors that increase satisfaction are recognition for achievement,
work itself, etc. The factors that influence dissatisfaction are organizational policy and
administration, supervision, salary, interpersonal relationship etc.
8
In addition pay and working
conditions, workload factors are determinants of job satisfaction.
9

In Indian context a number of studies have been conducted on job satisfaction. Singh and
Srivastava (1975) found that the status of a job and job satisfaction are positively correlated.
11

Venkatachalam et al (1998) found that the mean scores of job satisfaction and job superiors
were higher than those of subordinates.
12
Sharma and Bhaskar (1991) reported recognition and
appreciation as important determinates of job satisfaction.
13
J oshi(2001) found that the extent of
job satisfaction is not significantly higher in the private hospital than in public(government)
hospital. He found significant difference in job satisfaction of managers, supervisors and worker
in private sector.
14

There are other determinates of job satisfaction. McNeese-Smith argued that research on nurses
job satisfaction has failed to explore the staff nurse perspective of determinates of job
satisfaction. In semi structured interviews with staff nurses to determine their perspectives on job
satisfaction, the finding indicated that there were a wide variety of factors that influenced
satisfaction with nursing positions, patient care, environment, balanced workload, co-worker
relations, and meeting personal family needs. The major attribute of job dissatisfaction were
feeling overloaded, dealing with obstacles to provide good patient care, problematic co-worker
relationship, and unfair work situation. The participants indicated that that heavy patients
workload and stress negatively influenced their job satisfaction. Stress is a strong co-relate of job
satisfaction among nurses.
15

III. MATERIAL AND METHODOLOGY
This research aims at examining the job satisfaction of nurses. Nurses work both in the
government hospitals and private hospitals on J algaon District. Randomly the sampling, 360
nurses are selected from both government and private hospitals to complete the designed
questionnaire. Working conditions differ in both these two hospitals and job satisfaction is
influence by the working environment. Hence, this research would make the comparison
between nurses working in the government hospitals and the private hospital. The working
conditions like scope of participation in decision-making and autonomy differ across this
hierarchy. Three hundred nurses from private hospital and sixty nurses from government
hospitals completed the questionnaire. The response rate was 100%. The participate 240 females
and 120 males with a mean age of 35.5 years. These were 260 married and 100 unmarried. There
were 71.1% of nurses are working in rural area hospitals and 28.9% nurses are working in urban
area hospitals. The average experience of the participates in there present hospital was 2.5 years.
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The instrument used in this study is composed of 12 parts part one deals with the Nurses
demographics information It include 12 statements that represent the information about nurses
possible feelings are given and some or other statement contains individual response about the
hospitals for which they work. The response categories were : (1) disagree, (2) disagree slightly,
(3) agree slightly, (4) agree. The measures used were tested for validity and reliability in nursing
profession. In this study , the score of Chi Square test is carried out by using SPSS software it
determined p-value for each test.
IV. PROCEDURE OF DATA COLLECTION
Three hundred and sixty nurses working in a number of public hospitals in J algaon district were
contacted and a copy of the questionnaire is delivered to them . A letter from the researcher
explaining the purpose of the study, having collected all the questionnaire, a major revision and
coding were carried out. The statistical package was used to analyze the data was SPSS for
windows.
V. HYPOTHESIS
This research tested the following hypothesis:
J ob satisfaction differs significantly between the nurses working in hospitals in the
private and government hospitals
J ob satisfaction differs significantly between the nurses Working conditions, qualification
and working experience.
VI. RESULT
The study findings have validates both these hypothesis.
A. DEMO-GRAPHICAL FACTORS
FREQUENCY OF AGE FOR TYPE OF HOSPITAL
We observe that 33.3% government nurses belonged 25 35 years and 45 60 years 50%
who were working in private hospitals belonged 45-60 years age, we see that the value of the
chi-square test statistic is 3.344 and its corresponding p-value is 0.765>0.05.
FREQUENCY OF MARITAL STATUS FOR TYPES OF HOSPITAL
We observe that 66.7% of nurses working in government hospital 73.3% of those who were
working in private hospitals were married we see that the value of the chi-square test statistic is
0.726 and its corresponding p-value is 0.695>0.05.


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B. ABOUT ORGANIZATION
AWARENESS OF MISSION & VISION OF ORGANIZATION
We observe that, 66.7% of the nurses in government hospital and 73.3% of the private nurses
agree that they are aware of vision and mission of the hospital.
We see that the value of the chi-square test statistic is 1.108 and its corresponding p-value is
0.293>0.05.
AWARENESS OF WORKING PROCEDURE
We observe that 93.3% of the nurses in government hospital and 86.7% of the private nurses
agree that the they are aware about working procedure we see that the value of the chi-square test
statistic is 2.071 and its corresponding p-value is 0.150>0.05.
C. WORKING CONDITIONS/ENVIRONMENT
We observe that 93.3% of the nurses in government hospital and 73.3% of the private nurses
agree that whether their working environment are good for cause. We see that the value of the
chi-square test statistic is 11.180 and its corresponding p-value is 0.001<0.05.
D. RESPONSIBILITIES
FINANCIAL NEEDS AND JOB SATISFACTION
We observe that 53 nurses in government hospital and 280 private nurses agree that
responsibility of job is financial. we see that the p-value is 0.209>0.05.
PART OF DECISION MAKING
We observe that 33.3% of the nurses in government hospital and 13.3% of the private nurses
agree that they are part of decision making. We see that the value of the chi-square test statistic is
14.400 and its corresponding p-value is 0.0001<0.05.
E. WORKING CONDITIONS
STRESS LEVEL OF JOB
We observe that 66.7% of the nurses in government hospital and 73.3% of the private nurses
agree that they are part of decision making. We see that the value of the chi-square test statistic is
1.108 and its corresponding p-value is 0.293>0.05.
NURSES WORK LOAD AND QUALITY OF SERVICE TO PATIENTS
We observe that 100.0% of the nurses in government hospital and 93.3% of the private nurses
agree that they have lot of work to perform. We see that the value of the chi-square test statistic
is 6.235 and its corresponding p-value is 0.014<0.05.
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F. RELATIONSHIP WITH COLLEAGUES AND PATIENTS
NURSES COMMUNICATIONS WITHIN THE ORGANIZATION
We observe that 80.0% of the nurses in government hospital and 86.7% of the private nurses
agree that communication seem to be good in their organization. We see that the value of the chi-
square test statistic is 1.798 and its corresponding p-value is 0.180>0.05.
NURSES AND SUPPORT NETWORK
We observe that 73.3% of the nurses in government hospital and 80.0% of the private nurses
agree that whether they have support network. We see that the value of the chi-square test
statistic is 1.334 and its corresponding p-value is 0.248>0.05.
G. AUTONOMY & JOB SECURITY
REWARD TO NURSES
We observe that 80.0% of the nurses in government hospital and 73.3% of the private nurses
agree that their efforts are rewarded as they should be. We see that the value of the chi-square
test statistic is 1.168 and its corresponding p-value is 0.280>0.05.
RECOGNITION TO NURSES
We observe that 80.0% of the nurses in government hospital and 93.3% of the private nurses
agree that they are recognized for doing their job well. We see that the value of the chi-square
test statistic is 10.976 and its corresponding p-value is 0.001<0.05.
H. SALARY BENEFITS
ACCORDING TO TERMS AND CONDITIONS
We observe that 66.7% of the nurses in government hospital and 40.0% of the private nurses
agree that their salary is satisfied according to their duties including overtime. We see that the
value of the chi-square test statistic is 14.400 and its corresponding p-value is 0.0001<0.05.
SATISFACTION TO PRESENT SALARY
We observe that 73.3% of the nurses in government hospital and 26.7% of the private nurses
agree that they are satisfied with present salary. We see that the value of the chi-square test
statistic is 48.223 and its corresponding p-value is 0.0001<0.05.
I. TRAINING NEEDS AND USE OF ABILITY
POSSIBILITIES OF TRAINING AND CONTINUING EDUCATION
We observe that 73.3% of the nurses in government hospital and 33.3% of the private nurses
agree that their organization provide them enough work related training and continuing
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education. We see that the value of the chi-square test statistic is 33.333 and its corresponding p-
value is 0.0001<0.05.
PROUD FEELING FOR CARING PATIENTS
We observe that 100% of the nurses in government hospital and 93.3% of the private nurses
agree that they are proud for caring patients. We see that the value of the chi-square test statistic
is 4.235 and its corresponding p-value is 0.040<0.05.
J. PROMOTION AND FUTURE GROWTH
CHANCES OF PROMOTIONS
We observe that 80% of the nurses in government hospital and 33.3% of the private nurses agree
that they are satisfied with chance of their promotion. We see that the value of the chi-square test
statistic is 44.977 and its corresponding p-value is 0.0001<0.05.
K. SOCIAL AND PERSONAL LIFE
EFFECT OF PERSONAL RESPONSIBILITIES
We observe that 93.3% of the nurses in government hospital and 73.3% of the private nurses
agree that increasing personal responsibility felt difficult to fulfill. We see that the value of the
chi-square test statistic is 141.337 and its corresponding p-value is 0.0001<0.05.
SERVICE to the society
We observe that 93.3% of the nurses in government hospital and 86.7% of the private nurses
agree that they feel proud to serve the society we see that the value of the chi-square test statistic
is 2.071 and its corresponding p-value is 0.150<0.05.
VII. DISCUSSION
The study reveals that nurses working in the private hospitals are more aware about the vision
and mission of the organization than the nurses working in the government hospitals. Working
procedure, responsibility is seems to be very excellent in the nurses working in the government
hospitals than the private hospital nurses. Nurses of private hospitals have opportunities for
independent decision making, communication skills and involvement in decision making is
superior than nurses of government hospitals. Nurses of Government hospitals are more satisfied
with their salary benefits, the chance of promotion, training and continue education than the
nurses of private hospitals. The findings of this study indicate that the working conditions should
be improved in private as well as government hospitals. Communication mechanism available in
the government hospitals are poor than those in private hospitals. Better infrastructure can be
provided, more staff can be appointed, salaries can be increased. These would benefit the patient
both directly and indirectly. This type of research could help hospitals to understand the close
connection between nurses job satisfaction and quality of patient care. This study will help
nurses work as professionals, which in turn improve health care system in the society.
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VIII. ABSTRACT
J ob satisfaction is variation for both the employer and employee. The purpose of this study is to
asses the satisfaction level of nurses in private and government hospitals with their jobs and
working environment as well as to examine the effect of nurses demographic factors on it.
Three hundred nurses are working in a number of private hospital and sixty nurses are working
in number of government hospitals are the sample size. The measures of the study are already
tested for validity and reliability. The method of data collection used was the questionnaire
response analysis. The means and standard deviations show that government hospital nurses are
satisfied with their jobs to a greater extent than the private hospitals nurses, and they are better
committed on the working conditions to their hospitals 66% of government hospital nurses are to
be satisfied and 40% of private hospital nurses are satisfied with job.
This study found that nurses in government hospital are more satisfied and committed to their
hospital. Besides, satisfied nurses tend to have a higher degree of commitment then the less
satisfied ones.
KEYWORDS: J ob satisfaction, working environment, private, government
IX. REFERENCES
1. Tonges M, Rothstien H, Carter H. Sources of J ob Satisfaction in Hospital Nursing
Practice. J ONA 1998; 28; 47-61.
2. Smith D. Increasing Employee Productivity, J ob Satisfaction, and Organizational
Commitment. Hosp Health Serv Adm 1996;41; 160-174.
3. Hoppock,R(1935) J ob Satisfaction, New York, Harper.
4. Knoop R. Relationship among J ob Involvement. J ob satisfaction and organization
commitment for nurses. J Psychol 1995;29;643-649.
5. Cumber D. Alexander J . The Relationship of job satisfaction with organization variable
in public health Nursing. J ONA 1998;28;39-46.
6. Vroom, V.H. (1964) Work and Motivation, New York, Wiley.
7. Kish J . Staff Development Opportunity and Nurses J ob Satisfaction, Organizational
Commitment, and intent to Remain in the Organization. J Nurse Staff Dev 1990;279-282.
8. Herzberg F, Work and the Nature of Man. Clevland(USA): World Publishing-1966.
9. Nolan M, Nolan J Grant G. Maintaining Nurses J ob satisfaction and Moral. Br j Nurs
1995;4;1149-1154.
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10. Locke, E.A (1976) The nature and causes of job satisfaction. In: M.C. Dunnette (Ed),
Handbook of Industrial and organizational Psychology, Chicago Rand McNally, pp.
1297-1349.
11. Singh, A.P. & Srivastava, A.K. (1975) Occupational level and job satisfaction. J ournal of
Psychological Reasearchers, 19(2);58-59.
12. Vekatachalam J ., Reddy, K.S. & Samiullah, S.(1998) Effect of job level and the
organizations; identity on job involvement and job satisfaction; A study of different
organizations Management & Labour Studies,23(B);421-427.
13. Sharma B.R. and Bhaskar, S.(1991) Determinates of job satisfaction among engineers in
public sector undertakings. ASCI J ournal of Management,204($);217-233.
14. J oshi, G.(2001) Occupational level and job ssatisfaction: A comparative study of public
and private sector organizations. J ournal of the Indian Academy of Applied Psychology
27(1-2);157;161.
15. McNeese-Smith, D.K.(1998) A content analysis of staff nurse description of job
satisfaction and dissatisfaction. J ournal of advanced in Nursing. 29(6);1332-1341.
16. Almeer A. The Relationship between J ob stress, Organisational Commitment,
Performance, J ob Satisfaction, and demorgraphic factors. J ournal of Public
administration 1995;35;207-249.

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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
WOMEN AS CHANGE AGENTS IN THE
DIVERSIFIED GLOBAL ECONOMY

DR. ASHISH MATHUR*

*Associate Professor, Department of Management Studies,
Lachoo Memorial College of Science & Technology, J odhpur.

INTRODUCTION
The World needs a new vision,
To see the world through a new prism

Man and woman are the two axis of the world. Both the genders have different styles to complete
the cycle of life. Men and women tend to have different attitudinal and behavioral orientations
based partly on genetic makeup and partly on socialization practices Women tend to be more
communal minded and men tend to be more self- expressive and goal directed. Women tend to
take in more of the data in their immediate environment; men tend to focus on the part of the
environment that helps to achieve a goal. Some of the difference has been popularized in books
as J ohn Grays Men are from Mars and women are from Venus. (Kotler 2005) Both the genders
display interdependence but still, in course of time, woman has evolved as a weaker sect, being
dominated by man in many spheres of life. The biological differences have enhanced the
dependence on man but now with increased education woman has entered in the new era of
economic development. The liberated woman has crossed the domestic barriers and has entered
in the professional areas to give her contribution in terms of the economic earnings. This
evolution has seen different types of leadership styles in the management and organizational
development leading to the broader development of the society.
The research on gender and leadership style shows that males and females do use different styles.
Specifically, women tend to adopt a more democratic or participative style and a less autocratic
style or directive style than do men. Women are more likely to encourage participation, share
power and information, and attempt to enhance followers self worth. They lead through
inclusion and rely on their charisma, expertise, contacts, and interpersonal skills to influence
others. Women tend to use transformational leadership and by motivating others, they increase
the self esteem of the employess.to achieve the organizational goals. Men are more likely to use
a directive, command and control style. They rely on the formal authority of their position for
their influence base. Men use transactional leadership, handing out rewards for good work and
punishment for bad. The men and women design the organization differently. An organizational
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sociologist who has studied this area closely proposes that gender differences in values and
moral principles often lead women to prefer an organizational forum that is very different from
the traditional, hierarchically rigid burecrautic structure (Robbins).The women value
organizational members as individual human beings. People are treated individual rather as
somebody filling up just position. The women business owners are more likely to provide
flexible work schedules, tuition reimbursement, and job- sharing arrangements. Organizational
relationships are a value to them and careers are defined in terms of service to others. There is
commitment to employees growth Rather than emphasizing specialization and the development
of a narrow range of expertise, these organizations expand members skills and broaden
employee competencies by offering new learning experiences. A caring community is fostered
.Organizational members become closely bound in community sense. They learn to trust and
care for each other much like neighbors in a small town. There is a sharing of power. All the
members who will be affected by a decision are given the opportunity to participate in making of
the decision
THE GENDER ROLES AND THEIR CONTRIBUTION TOWARDS DEVELOPMENT
Women constitute almost half of the total population in the world. But their representation in
gainful employment is comparatively low. Women are 50 percent of the worlds population, do
the 2/3rds of the worlds work hour, receive 10 percent of the worlds income and even less than
one percent of the worlds property. All because of an accident of birth. In most of the countries,
average earnings of women are lower than that of men. In several developing countries, marriage
is the only career for most of women. Previously women used to confine their activities in
selected professions such as education, nursing, medicine and office work only. Very few
women use to enter into the professions like industry, engineering, trade etc. Since long ages,
women are considered as a thing made to entertain the men. Though the discrimination is in the
sex but society has created another form of discrimination, called as GENDER, which is
responsible for the entire problems in the society. Gender-based issues at work place are
common. Gender is the difference between men and women in a social context as perceived by
the society whereas sex, is the biological difference between them. Women are generally
presumed to be weak, passive, dependent and people-oriented. On the other hand, men are
considered strong, aggressive, independent and things-oriented. Assumptions become reality
when society prepares males and females in performance areas in presumed roles. As a result,
men and women enter organizations with different skill sets. Women are taught to depend upon
others to limit their ambitions and to avoid exposure and risk. Such orientations and role
perceptions inhibit development of self confidence, innovativeness, achievement, motivation and
risk taking ability which is essential for an entrepreneurial career.
The 20
th
century has witnessed to a gradual revival of the status of women in the world. Women
displayed substantial growth in areas of health, education and work. Gender role stereotype are
also changing in J apan, Singapore, Thailand, Taiwan, Hong Kong and Korea. Women are
displacing men in the field of management, aviation, engineering and non- traditional
occupations - A salient revolution without marches is happening all over the world. In the world
of media and communication, women are now in fore front. In South Asia, women have
repeatedly occupied the highest political positions, despite, low standards of women in society.
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TRADITIONAL MYTHS ABOUT MALE AND FEMALE
Male Female
Bread earner
Security provider
Strong
Ambitious
Responsible
Reproductive
home maker
care taker
emotional
gentle


MODERN PERCEPTIONS ABOUT MALE AND FEMALE
Male Female
Aggressive
Worried
Money minded
Confused
Hard worker
Analytical
Sincere
Value based
Concentrate
Smart worker

WOMEN AS CHANGE AGENT TO FOSTER DEVELOPMENT
Woman as a force of development has changed the shape of global economy. The world has
certainly become a better place to live in and grow. The contribution of women in the
development of soft skills in the corporate sector has given more creativity to the business. The
trends in the development of advertisement and sales and the other sectors of business have
increased the options for growth and progress. Women have added beauty with glamour to the
world. Women are successfully managing the domestic and professional front by multitasking to
manage the society in a better way. We are in the new era, where the impact of glamorous
woman is being perceived and felt. Women are rapidly gaining the purchasing power.The market
research is clear. Women make or greatly influence most purchasing decisions related to homes,
medical care and vacations. Women are where the real bucks are. Now close to 8 million women
own enterprises in America, up from about 400,000 in 1970.They employ about 18.5 million of
us 40% more than old Forbes 500 industrials. About 22% of working wives out earn their
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hubbies, and women constitute half of the population of those with $500,000or more in net
worth. (Tom Peters 1997) Participation and partnership of the civil society is critical to promote
womens empowerment and eliminate gender blindness in development of policies and actions.
The changes of trends are already perceptible and they need to be reinforced. In Asia and Africa,
women groups have already started influencing political processes demanding full partnership
with men. In India girls have been excelling boys in academic performance for last two decades.
In Hong Kong, women occupy one in five, management jobs. In J apan almost all currency
traders are women. In East Asia women are playing leading role in entrepreneurial initiatives.
Business houses in Asia are slowly realizing the commercial talent of the potential women
workers. Women are becoming more assertive about their rights, even in respect of child
bearing. In Shanghai, Singapore and certain extent to Kerela, women are already deciding
whether to marry or start a family. In many countries women have already dominated the service
sector.
PROBLEMS FACED BY WOMEN IN ORGANIZATION AND SOCIETY
Management requires a high level of communication skills, participation skills and to work with
a team, all these factors seem as an impossible task for women. Management is more or less
dependent on taking major decisions and women are considered as unable to do that. In countries
like USA and Britain major post were subjected to males because females have to take few
months leave during their pregnancy period and management is not responsible for this.
Previously, the growth was limited because women could not take independent decision
problems related to family and social life.
SEXUAL HARASSMENT
Working women face lot of problems related to sexual harassment in the organizations due to
working with males which is quite difficult at times. Sexual harassment generally encompasses
sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors,
and other verbal and physical conduct of sexual nature. Its considered illegal. A recent survey of
fortune of 500 companies found that 90 percent of them had dealt with sexual harassment
complaints. More than a third of these companies had been sued at least once, and about a
quarter of them had been sued multiple times. (Annee) From management standpoint, sexual
harassment is a concern because it interferes with job performance and exposes the organization
to legal liability. To avoid liability, management must establish a clear and strong policy against
sexual harassment. (Alan Duetschman) That policy should then be reinforced by regular
discussion sessions in which managers should be reminded of the rule and carefully instructed
that unwelcome sexual overtures to another employee will not be tolerated. Studies have shown
that the best training on sexual harassment gives participants a chance to talk to each other
instead of just listening to lecture or watching a film on the subject. (Anne B Fisher)
It is a stereotype assumption about the women that they are not interested in professional work
and are always attached to children and home. The stereotypes think of women as uncommitted
employees who wont stay with an organization or who wont relocate are just plain not true.
The primary reason of female professionals to resign their jobs is not home or child rearing
responsibilities. Its frustration with career progress. In fact, 73 percent of women who quit large
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companies moved to another company, while only 7 percent resigned to stay home. (Barbara
Parker 1993)
Until 1986, the US Supreme Court didnt even recognize sexual harassment as a form of sex
discrimination. However in that year the court held that employees have the right to work in an
environment free from discriminatory conduct and insult. (Seema Nyyar)
FAMILY CONCERNS
Another family concern that arises is the large number of dual career couples, in which both
partners have a professional, managerial or administrative occupation. (Kenneth 1988) an
organizations human resource management policies need to reflect the special problems this
situation creates for couples. Special attention needs to be given to the organizations policies
regarding nepotism, reallocation and transfers, and conflicts of interest. (Kenneth 1988)
AIDS AT WORKPLACE
AIDS continues to be the major medical and social issue of the decade. (Axel Lebios) We look at
it as an issue in human resource management because of the profound impact; it can have on the
workplace and on employees. Although many dont want to confront it. Managers, need to be
prepared for dealing with HIV/AIDS related issues in the workplace. (Allen Miller)
THE IMPACT AND EMERGENCE OF A LIBERATED WOMEN
But now, the time has changed. The integration of global economy has given many comfortable
opportunities for growth of women to work and grow. Woman has her own identity and she
definitively has her own brain to decide what is right and wrong for her. Parents are looking for
the education of the girls which is giving them wings to fly in the sky to higher limits. The
liberalized women have a higher perception and attitude to grow creatively. The freedom to
choose her career has given her the economic independence to crystallize her:
1. Ambition and Goal.
2. Talent.
3. Growth.
4. Environment in terms of no gender discrimination.
5. Rights to take important decisions.
This differentiation in terms of deciding a career has greatly influenced the economies of all the
countries. According to one of the reports published in The Times of India reveals more women
in work force can add $35 billion to GDP over the next five years it is only intuitive. More
Women in the work force means tapping an otherwise latent resource. This, in turn, translates
into increased income and consumption. When we talk about the skills and handling the
situations it is the only strong attitude of women, which brings the change to attain the results.
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Recent report of W.H.O says that it is the change in the environment, which has created an
unexpected impact in the society and very soon all the sectors will be merged in this stream. The
World and environment are changing and we have to accept it. Woman can be a team leader who
can handle the people and motivate them. She can communicate and express herself fully and
create a good support system. Woman can be decision maker who needs greater confidence to
change the world. The woman has an inborn quality by which she can handle the situation in a
more analytical and better way. The growth of women has resulted in a better expression of the
society. Today the children are far more aware and groomed because of the educated mothers.
The child has higher access to the opportunities of growth because of the guidance of an
educated mother. The woman has become more and more independent, assertive and
competitive. In the new millennium, jobs will be created in female dominated information
technology industries.
CONCLUSION
Man and woman are the two axis of the world. Both the genders have different styles to complete
the cycle of life. Men and women tend to have different attitudinal and behavioral orientations
based partly on genetic makeup and partly on socialization aspects. Since long ages women are
considered as a thing made to entertain the men. Though the discrimination is in the sex but
society has created another form of discrimination, called as GENDER, which is responsible for
the entire problems in the society. Gender-based issues at work place are common. Gender is the
difference between men and women in a social context as perceived by the society whereas sex,
is the biological difference between them Woman as a force of development has changed the
shape of global economy. The world has certainly become a better place to live in and grow. The
contribution of women in the development of soft skills in the corporate sector has given more
creativity to the business. The trends in the development of advertisement and sales and the other
sectors of business have increased the options for growth and progress. Women have added
beauty with glamour to the world. Women are successfully managing the domestic and
professional front by multitasking to manage the society in a better way. We are in the new era,
where the impact of glamorous woman is being perceived and felt.
Working women face lot of problems related to sexual harassment in the organizations due to
working with males which is quite difficult at times. But now, the time has changed. The
integration of global economy has given many comfortable opportunities for growth of women
to work and grow. Woman has her own identity and she definitively has her own brain to decide
what is right and wrong for her. Parents are looking for the education of the girls which is giving
them wings to fly in the sky to higher limits. The liberalized women have a higher perception
and attitude to grow creatively. The freedom to choose her career has given her the economic
independence
REFERENCES
1. Barbara Parker and Gleen Mcevoy Gender and attitudinal commitment to organizations
a Meta analysis journal of business research, J an 1993.pp 63-73
2. Kotler, Philip. Marketing Management, Pearson education, 11
th
edition, 2005
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3. Tom Peters, Opportunity Knocks, Forbes, J une 2, 1997.
4. Kenneth E Newgren, C E Kellogg, and William Gardener,Corperate Responses to Dual
Career Couple : A Decade of Transformation Akran Business and Economic Review,
Summer 1988 p 85
5. ibid pp 85-96
6. Quote by Axel Leblios,President and CEO of Bull HN information Systems Incfound in
US Department of Health and Human Services, Business Responds to AIDS p 4
7. This section is based on J ohn P Kohli and Allan N Miller U S Organization Response to
AIDS in the Workplace. A Review and Suggestion for Managers, Management Decision
J uly 1994, pp 43-51 and Romuald A Stone AIDS in the Workplace An Executive Update
Academy of Executive August 1994, pp 52-64
8. Anee B Fisher, Sexual Harassment: What to Do, Fortune August- 23, 1993, p-85
9. Seema Nayyar and Susan Miller, Making it easier to Strike Back Newsweek
September12,1994,.p-50
10. Alan Duetschman, Dealing with Sexual Harassment, Fortune, November- 4, 1991, p-
145-48
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A Jo ur na l of As i a n Re s e a r c h Cons o r t i um
AJRSH:

A S I A N J O U R N A L O F
R E S E A R C H I N S O C I A L
S C I E N C E & H U M A N I T I E S
SELF REGULATORY MECHANISM OF
ADVERTISEMENTS IN INDIA

DR (MRS.) MANJINDER GULYANI*

*Assistant Professor of Law,
Institute of Law, Kurukshetra University, Kurukshetra.

ABSTRACT

Todays business world is full of competition. So the business houses are dependent
upon promotional offers, schemes, and commercials to sustain their profit graphs.
While doing so, sometimes, they transgress their limits and jeopardize the interests
of the consumers or offend the sentiment of a class. So it is inevitable to set their
limits and penalize them if they go beyond such limits. In order to curb deceptive,
misleading or indecent Ads there are several legislations in India. In addition to that
a parallel self regulatory mechanism is also working. In that direction,
Advertisement Standards Council of India has also intervened in several matters and
protected the interests of consumer. The paper focuses on such matters where the
Council has worked as a regulatory agency and made the advertiser either to
withdraw the Ad or to modify it.

KEYWORDS: Advertisement, ASCI, Regulation.
______________________________________________________________________________
INTRODUCTION
It is often alleged that most of the advertisements honestly inform and educate us but some are
false or deceptive and illegal. Some advertisement may have the content of puffery, manipulation,
comparative pricing, unsubstantiated claims, incomplete description, false testimonials or
comparisons, partial disclosure or visual distortion of products. When the consumer has not
considered the bargain properly and is persuaded to make a deal through some oppressive and
manipulative marketing strategies, his rights may easily be jeopardized.
Most of the Indian consumers not even claim their rights against the violations due to lack of
awareness. It has been observed that a consumer needs protection not only from being supplied
with defective goods and deficient services, but also from unfair trade practices. So the
Consumer Protection is a socio-economic programme which needs to be pursued by the
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government as well as the business because the satisfaction of the consumers is in the interest of
both.
RIGHTS OF A CONSUMER AND A CITIZEN
Firstly every citizen should be aware of the fundamental rights embodied in our constitution.
Under the purview of these fundamental rights every citizen has the following rights as a
consumer:
Right of Safety from harm caused by defective goods & services;
Right to be Informed- about the goods being purchased & services availed;
Right to Choose - from a variety of goods and services;
Right to be Heard- about defective goods purchased or services rendered;
Right to seek Redressal- from competent judicial or quasi judicial authorities;
Right to Consumer Education- in order to enable one to exercise ones rights freely.
The principal sources of advertising regulation that are responsible for the protection of these
rights are national governments, international governments, organizations, and non-government
institutions including associations of individual advertisers, the media, and advertising agencies.
They adopt many different types of regulatory controls to govern advertising, such as national
legislation, administrative rules and orders, intergovernmental recommendatory codes and
guidelines. Together, this control from the complex regulatory web spanning the global
marketplace.
Like other countries around the world, India too has a self regulatory organization (SRO)
for advertising content The Advertising Standards Council of India, ASCI founded in 1985.
The three main constituents of advertising industry viz advertisers, advertising agencies and
media came together to form this independent NGO. The aim of ASCI is to maintain and
enhance the public's confidence in advertising. Their mandate is that all advertising material
must be truthful, legal and honest, decent and not objectify women, safe for consumers -
especially children and last but not the least, fair to their competitors. The code of ASCI has been
distributed in several chapters.
CHAPTER I, II
To ensure the truthfulness and honesty of representation and claims made by advertisements and
to safeguard against misleading advertisements;
(i) The advertisements must be truthful. All description, claims and comparisons related to
matters of objectively ascertainable fact should be capable of substantiation and they are
required to produce such substantiation as and when required to produce by ASCI;
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(ii) The source and date of claims based on research or assessment should be indicated in
advertisement.
(iii) Advertisements should not contain any reference to any person, firm or institution,
picture without due permission;
(iv) Advertisements shall not distort facts or mislead the consumers by means of implications
or omissions;
(v) Advertisements shall not be so framed as to abuse the trust of consumers or exploit their
lack of experience or knowledge. Advertisements shall not be permitted to contain any
claim so exaggerated as to lead to grave disappointment in the minds of consumers;
(vi) Obvious untruths or exaggerations intended to amuse or to catch the eyes of consumer
are permissible.
To ensure that advertisements are not offensive to generally accepted standards of public
decency, advertisements shall contain nothing indecent, vulgar or repulsive to cause grave or
widespread offence.
CHAPTER III
To safeguard against the indiscriminate use of advertising for promotion of products hazardous
to society or individuals, to such degree that is unacceptable to society at large.
(i) No advertisements shall be permitted which tends to incite people to crime, disorder,
violence or intolerance and divides any race, caste, colour, creed or nationality and
adversely affects friendly relations with a foreign state;
(ii) Advertisements addressed to children shall not contain anything in illustration or
otherwise, which might result in their physical, mental or moral harm or which
exploits their vulnerability.
(iii) Advertisements should contain nothing in breach of law;
(iv) Advertisements shall not propagate products, the use of which is banned under the
law.
CHAPTER IV
(i) Advertisements containing comparisons with other manufacturers or supplier or with
the products, including those where a competitor is named are permissible in the
interests of vigorous competition and public enlightenment with aspect, subject
matter of products and no consumers shall be mislead due to such comparison.
(ii) Advertisements shall not make unjustifiable use of the name or initials of any other
firm, company or institution, nor take symbol of another firm and its products;
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(iii) Advertisements shall not be so similar to other advertisements in general layout, copy,
slogans, visual presentation, music or sound effects as to be likely to mislead or
confuse consumers.
The council is doing a creditable work in regulating the advertising. The Consumer Complaints
Council (CCC) of ASCI currently has about 21 members: 9 are from within the industry and 12
are from the civil society like well-known doctors, lawyers, journalists, academicians, consumer
activists, etc. The CCCs decision on complaint against any ad is final. Some significant cases
disposed of by it are discussed here.
CLAIMS SHOULD NOT BE MADE WITHOUT SCIENTIFIC DATA OR SUPPORT
In certain cases claims are made which are not true. They have no scientific data or research
behind them. Advertisements with such claims are deceptive and against the interests of the
consumer. The Consumer Protection Act has several principles to deal with such cases. In
addition to that ASCI has also formulated code to check such deception.
In Aswini Homeo & Ayurvedic Products Ltd (Aswini Homeo Arnica Hair Oil) Media House
Mktg & Advtg aired on DD6 Oriya (2/2010), ETV Oriya (2/2010), Vijay TV Tamil vide
complaint no. (1/2010), TVC shows - a person whose hair was earlier not growing, post
application of the product, not only has it increased to normal rate, but has actually grown at
double the normal rate of hair growth. The hair growth shown is 6 inches in 6 months (i.e. 2.5
cm/month). Claim hair fall control in 4 months and Dandruff control in 6 months were
challenged.
It was alleged that as per accredited scientific research and findings, the normal rate of hair
growth is around 1 cm/month. Advertisement is featured based on only data of one individual
which is not statistically significant. No scientific data or support is indicated in support of this
claim. So it was held by CCC in April 2010 Claims, hair fall control in 4 months, and
Dandruff control in 6 months, were not substantiated with clinical tests/trials reports.So TVC
was modified.
In Nirali Appliances (Nirali Energy Saver) Leaflet and Ad on companys website Leaflet (in
Hindi) as translated in English claimed - Improves the power factor and controls the voltage;
also protects from spike current, 20%-30% savings in Lighting Load, 12%-15% savings in
A.C. Load, 15%-20% savings in Mixed Load, Balances waveform, no effects on line
frequency, Consumes zero electricity. Website claims - Noticeable Instant Results,
Environment Friendly, Easy to use & maintenance free, Absolutely legal, safe, Govt.
approved lab tested the complaint was that these claims need to be substantiated with proof,
supporting technical information with details of tests/trials reports from an independent
recognized testing institution. In J uly 2010 taking the matter exparte and relying upon Chapter
I.1 of ASCI rules it was held by CCC that Claims were not substantiated with tests/trials reports
and with appropriate certificate from IDEMI.
The matter was resolved when the advertiser assured that these claims will not be repeated again
in their leaflet and on their website.
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In Dabur India Ltd (Dabur Pudin Hara Lemon Fizz) aired on Aaj Tak, Colors, Sab TV, Zee TV,
Star Plus in 2010 Claimed Pudin Hara Lemon Fizz does not contain chemicals but other drugs
are chemicals TVC and Pack claim - Quick relief from Gas & Acidity. It was alleged that
TVC unfairly denigrates other antacid medicaments by calling them as chemical which is
uncalled for. Antacid drugs do contain approved active pharmaceutical ingredients which are
chemicals.
One of the prominent ingredients in Dabur Pudin Hara namely Sarjiksara (English name:
Impure Sodium bicarbonate, alkali) is a chemical of mineral origin. This is more than 47% of
the total contents of the said product. So the claim is misleading.
Further, the amount of Pudina Satva contained in the product is merely 0.2% w/w. The claim
that this minuscule quantityof 0.2% w/w of Pudina Satva will relieve gas is unsubstantiated. The
other listed ingredients namely Nimbu Satva and Sarjikshara are known to have only acid
neutralizing benefits. These ingredients are not known to give quick relief from gas as claimed
on the pack.
In August 2010, relying upon Chapter I.4 the CCC decided that whilst the claim, Quick relief
from Gas & Acidity, is not false, the implication that Dabur Pudin Hara Lemon Fizz does not
contain any chemicals is misleading. So the TVC modified.
In Unicharm India Pvt Ltd (Mamy Poko Pants) Colors aired on 3/5/2010 and on India TV on
15/5/2010 Zee Cinema on (7/5/2010) the TVC claims - Mamy Poko Pants provide complete
leakage proof advantage (leakage na hone de).
The allegation was that the claim is false, baseless and uncorroborated by any independently
generated scientific data or consumer studies. Advertisement does not refer to any source of
support to the said claim. But in J uly 2010 it was found by CCC that the claim, the diaper helps
prevent leakage, was substantiated.
An ad published in Rajasthan Patrika Pvt Ltd in (3/2009 issue) showed two pie-charts comparing
circulations of Patrika with other Hindi print players in Bhopal and Indore. Circulation figures of
all publications including NaiDunia and NavDunia, were said to have been mentioned as per
Internal Estimates. The complaint received in 3/2009 was that the pie-charts projected Patrika
as the leader in both Indore and Bhopal markets. Ad also intends to mar image of competitors
through misleading circulation figures, and false comparison. Further, the Ad misrepresents the
data of NaiDunia. Moreover, the circulation figures for NaiDunia, Indore and for NavDunia,
Bhopal, as mentioned in the Ad have been neither certified by ABC nor are figures ever released
by NaiDunia Media. In May 2009 relying upon Chapter I.4 of ASCI rules CCC held that the Ad
mentions the circulation figures of all publications as as per internal estimates, and does not
quote an independent Reputed Research Institution like NRS or ABC. Ad is misleading as it
misrepresents the data of publications - Nai Duniya and Nav Duniya. Ad was ultimately
withdrawn by the Advertiser, on receiving the ASCIs request for comments on the complaint.
In the matter of Cosmetic, Plastic Surgery and Laser Super Specialties (Permanent Fat Removal)
published in Mumbai Mirror that was suo motu taken up by ASCI in (11/2008) Claims -
Permanent Fat Removal, 22 litre Fat (over 14 inches) removal in one sitting.
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A Complaint was registered in 4/2009. It was alleged that the advertiser needs to provide proof,
supporting clinical information, details of reports of clinical tests/trials conducted, in
substantiation of these claims. In May 2009, relying upon Chapter I.4 of ASCI rules it was held
that the Claim, Fat Removal was permanent, is misleading by ambiguity. Advertiser informed
that the said claim has been deleted from all their Ads.
In the matter of Ramdev Foods Products Pvt Ltd an Ad exhibited on website claimed- Indias
First Food Safety certified Spice Company. A Complaint was received in 4/2009 that the
advertiser should substantiate this claim with comparative data from research conducted by
recognised independent agency.In May 2009 relying upon Chapter I.4, ASCI rules, CCC
considered the Certificate from Bureau Veritas which stated that Ramdev Food Products is the
first organization certified as per ISO 22000: 2005 standard in the spice sector. In the absence
of proof that it was the first Spice Company certified by any Certification Institute, the claim was
misleading. So the Claim was modified.
In Mankind Pharma Ltd (Unwanted 72) aired on various TV channels. TVC claims (in Hindi)
Ab ham hain tension free. Complaint received in 9/2009alleged that the TVC projects
`Unwanted 72 to be a regular contraceptive; whereas it is an emergency contraceptive. Frequent
use of `Unwanted 72 has hazardous side effects. It does not say that an emergency pill is the
last option, after the other contraceptive methods failure. The message that This is an
emergency contraceptive pill and not a regular contraceptive is not clear. There is no mention
of side effects and it has misrepresented abortion. In October 2009, relying upon Chapter I.4 the
CCC decided that the cautionary message shown in the TVC is for a short period for the viewers
to read the same, which is likely to mislead the consumers. So the TVC was modified.
Similarly, in Cipla Ltd (i-pill) TVC aired on various channels. TVC claims (in Hindi)
Abortion se accha hai pregnancy ko rokna. The complaint received in 9/2009 that the TVC
projects i-pill to be a regular contraceptive; whereas it is an emergency contraceptive. Frequent
use of i-pill has hazardous side effects. It does not say that emergency pill is the last option, after
the other contraceptive methods failure. Like in earlier matter, the message that This is an
emergency contraceptive pill and not a regular contraceptive was not clear. There was no
mention of side effects and it has misrepresented abortion. In October 2009, relying upon
Chapter I.4, the CCC held that in the absence of a cautionary message, the TVC is misleading.
Advertiser assured appropriate modification of the TVC.
In GlaxoSmithKline Consumer Healthcare Ltd (Boost) TVC aired on various channels claims -
Boost provides three times more stamina than an ordinary chocolate drink. Claim stems from
a randomized control study where school going children who consumed Boost performed three
times more on the endurance test as compared to control groups. Complaint received in 11/2009
alleged that there is no specific and universal technique for stamina / endurance and thus
quantifying that Boost can provide three times of a non-existent measure of stamina / endurance
is misleading. Further, the claim based on a randomized control group can only pass muster if it
is a validated scientific study which has undergone rigorous independent peer review. If the
same rigor has not been applied to this study, then the claim itself is questionable.
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In December 2009, CCC accepted the Advertisers contention that it conducted a validated
scientific study. This complaint was not upheld. On the basis of Chapter I.4 of ASCI rules it was
decided that the scientific study submitted by the Advertiser, substantiated the claim. CCC
however observed that the study did not compare Boost drinkers to those with other ordinary
chocolate drinks, but with a placebo. Upto that extent the ad was misleading. So TVC was
modified.
In Reliance Communications Ltd (11/2009) the ad by Cartwheel Creative Consultancy published
in The Times of India, Mumbai Hindustan Times, Mumbai Ad mentions three plans - 1) Pay
per sec plan 2) Pay per min plan 3) Pay per call (3 mins) plan. These plans clearly indicate -
No conditions; No special vouchers; No monthly charges. The Complaint received in 11/2009
alleged that when the subscribers contacted the support number, they were informed that each
aforesaid plan will attract fixed monthly charges viz: Rs.99 p.m., Rs.199 p.m., or Rs.299 p.m.,
as per the plan preferred by the subscriber. So Ad is not truthful and is misleading the
consumers. In December 2009, it was held by CCC that Claim, No monthly charges, is
misleading as most viewers will not be able to distinguish between monthly charges and monthly
rentals. Advertiser assured appropriate modification of the Advertisement.
In Yum! Restaurants (India) Pvt Ltd (Masala Cheesy Bites) Ad displayed in the glass window of
Pizza Hut outlet in Pune mentions - Starting @ Rs.100/- only. A Complaint was received in
12/2009. The complainant entered the Pizza Hut outlet at Aundh, Pune, and asked for the Pizza
shown in the Ad for a portion for Rs.100 as advertised. He was taken aback when the Manager
and order taker at this outlet informed him that the Pizza shown in the Ad will cost Rs.365/-, and
one gets a plain pizza without any toppings, and not as shown. In J anuary 2010 it was held that
Visual depiction of a Pizza, and the claim of starting @ Rs.100/- only, mentioned therein is
misleading. Advertiser assured appropriate modification of the promotional material.
ADVERTISEMENT SHOULD NOT CORRUPT THE CHILDRENS MINDS
If the advertisements are not decent or they may corrupt the tender minds of children; or
encourage them to expose themselves to any dangerous stunts or activities, they need to be
stopped. CCC has also intervened in such matters and ordered either to withdraw the Ad or to
modify it.
In Godrej Sara Lee Ltd (Good Knight Aerosol) aired on Chutti TV the TVC shows - Aerosol as
a fragrant and the actors are inhaling it. The complaint was that this is highly objectionable as
one must not inhale a pesticide even if it is safe.
The canister for the aerosol resembles that of `Hit spray for cockroaches and other pests. These
insecticides are far more dangerous and should not be inhaled directly.
The TVC is being aired on childrens channel and is giving new ideas to children in order to
endanger their lives. In April 2010, relying upon Chapter III.2 (b) the CCC observed that Visual
depiction of a girl inhaling a mosquito repellent spray, shows a dangerous act which is likely
to encourage minors to emulate them in a manner which could cause harm or injury. Then the
TVC was modified.
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In Hindustan Unilever Ltd (Pureit Water Purifier) ad aired on Zee TV on (21/4/2010) claimed -
Pureit cleans 1 cr germs from dirty water. The contention was that Ad shows drinking of gutter
water which is indecent, and can provoke children to drink dirty water which can be dangerous
to health. Advertiser should provide supporting technical submission, details of tests/trials
conducted, with comparative data in substantiation of this claim. In J uly 2010, it was decided
that water shown was dirty water from a tub, and not taken from a gutter. The Claim was also
substantiated with technical submission and with details of tests/trials conducted.
In Hardcastle Restaurants Pvt Ltd (McDonalds Happy Meal) aired on Cartoon Network
(7/2010), TVC shows that McDonalds is using cartoon characters and offering toys and
merchandise to sell food. So it was complained that the advertiser is instigating children to adopt
unhealthy eating habits. In October 2010, it was decided that TVC does not violate any specific
guidelines or Code Provisions of ASCI.
In the matter of Bajaj Auto Ltd (Bajaj XCD Motorbike) a TVC aired on various channels showed
the rider of the bike driving at a very high speed and at a dangerous angle from the earth. A
Complaint received in 5/2009 alleged that Ad is dangerous. In J une 2009, on the basis of Clause
C of the Guidelines on Advertisements for Automotive Vehicles, it was held that Cautionary
message in the TVC was inadequately readable. After the decision the TVC has been modified
appropriately by increasing the size of the cautionary message. Advertiser assured that the said
TVC will not be aired in future.
Similarly, in Hero Honda Motors Ltd (Hero Honda Motorbike), the TVC aired on various
channels shows a film star riding on Hero Honda Motorbike and is driving a helicopter on a very
high surface. The complaint received in 5/2009 alleged that Ad is dangerous. In J une 2009, it
was held that Cautionary message in the TVC was inadequately readable. Advertiser assured
appropriate modification of the TVC.
In matter of Levis Strauss (I) Ltd (Levis Innerwear for J eans) ad appeared in Bombay Times
(5/2009) shows - a young man bare bodied with his jeans unbuttoned revealing partly his
innerwear, and says My girlfriends sister turns me on. Further, ad states Bare whats inside,
live unbuttoned. The complainant alleged in what way is an innerwear correlated with
someone being turned on or turned off? And that the visual shown in the Ad is suggestive. In
August 2009, Exparte order was passed that Bare whats inside is indecent, and the statement,
My girlfriends sister turns me on, is not culture sensitive. Ad is likely to cause grave or
widespread offence. So the ad was withdrawn.
Against the TVC of Mankind Pharma Limited (Manforce Condoms) shown on NDTV Imagine
on 7/2009 a Complaint was received in 7/2009. It was alleged that TVC shows many bad and
vulgar scenes which cannot be seen in the presence of small children. Two similar complaints
received against the same TVC. In August 2009, it was held that TVCs violate the prevailing
standards of decency and that the time of airing the Ads was not suitable for viewing by children
and minors.
In Novartis India Ltd (Otrivin Nasal Spray) Saatchi & Saatchi TVC aired on Neo Cricket in
11/2009 shows - a person going to office and missing out on catching the lift because blocked
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nose has slowed him down. He then takes Otrivin spray get his nose unblocked and reaches first
in the lift. He stops the lift doors from closing with his foot. A complaint registered in 11/2009
alleged that the stopping lift doors from closing by putting a limb in between is a very dangerous
practice. A person can get seriously injured if a faulty lift starts moving with persons limb stuck
between the lift doors. In December 2009, the CCC on the basis of Chapter III.3 decided that the
visual showed a dangerous practice without justifiable reason. So TVC was modified.
ADVERTISEMENTS SHOULD NOT PROMOTE ANY STEREOTYPE
If the advertisement tends to encourage gender or ethnic stereotypes, it must be controlled. In a
civilized and cultured world any ideas that are offensive to any class can not be tolerated. The
ASCI has very clear rules regarding that. And it has made many Ads withdrawn and modified on
these grounds.
In Parle Agro Pvt Ltd (LMN J uice) the TVC showed - a dry parched African site where the
people (showcased as having no water and depicted as stupid) are scrounging for water. The
TVC then says, if you dont have water, drink LMN juice. The complaint was that the situation
in Africa and India is extremely grave with no water. The Advertiser should not make a joke of
this important situation. And that the TVC is in extremely poor taste showing African nation in a
bad light. In J une 2010, the CCC decided that TVC has nourished stereotypes about Africans
which are blatantly racist. So TVC was withdrawn.
A suo motu matter taken up by ASCI against Coca-Cola India Pvt Ltd (Sprite) TVC aired on
various channels shows - two explorers are captured by a tribe that are, apparently, cannibals and
appear, quite distinctly, African. One of them manages to get out of it by bribing them with a soft
drink bottle. It was complained that TVC has nourished stereotypes about Africans which are
blatantly racist. In September 2010 the contention was accepted by the CCC that the TVC has
nourished stereotypes about Africans which are blatantly racist. Accordingly, TVC was
withdrawn since J uly 2010.
In Hindustan Unilever Ltd (Close Up Toothpaste) shown on Colors, NDTV Imagine and Zee TV
in 5/2010 TVC shows - couples trying to kiss each other. Ad says that the freshness/fragrance of
Close Up would provoke one to kiss (Kiss karne ko J i chahe). So the complaint was that the
advertisement is vulgar and not suitable for viewing by children. Four similar complaints were
also received by CCC. In J uly 2010, it was decided that the dramatization was not indecent and
not likely to cause grave or widespread offence.
In Vanesa Inc (Denver Deodorant) telecasted on Zee Studio, Star Movies and Star Gold in
6/2010, the allegation was that the TVC shows - a lady model in a skimpy Bikini trying to
expose more. This portrayal of lady model in indecent / obscene move is objectionable. The
TVC is also not for family viewing. In August 2010, it was held that visuals depicted in the TVC
are not offensive to generally accepted standards of public decency, and the TVC is not likely to
cause grave or widespread offence.
In Hindustan Unilever Ltd (Axe Twist Deodorant) TVC aired on various channels (5/2010)
shows - lady models in minimal dress (bikinis). The body movements and exposed body parts of
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the female models are uncalled for in the TVC. In August 2010, the CCC observed that the
visuals depicted in the TVC are not likely to cause grave or widespread offence.
The complaint against the ad of Nivea India P. Ltd (Nivea Cool Kick Deodorant) which was
shown on Star World, Star Movies and Sony TV in 5/2010 was that the TVC shows - a bedroom
scene. This is obscene and not suitable for family viewing. In September 2010, the CCC held
that the bedroom scene depicted in the TVC, is not likely to cause grave or widespread offence.
In Mankind Pharma (Manforce Condoms) aired on Colors, Star Ananda in 7/2010 it was alleged
that the language and depiction of the Ad is unsuitable to be viewed in the presence of small
children. Four similar complaints received against the same TVC. In September 2010, the CCC
observed that whilst the TVC was not likely to cause grave or widespread offence, it was not
suitable for family viewing. Advertiser was advised to air the TVC after family viewing hours,
viz., 11.00 p.m. to 6.00 a.m.
In another matter of Mankind Pharma (Manforce Condoms) the ad appeared in Bombay Times in
7/2010. Ad states - I was mesmerized, as if he has cast a spell on me. I was enjoying obeying
his orders. I was a slave by choice. The complaint was that this smacks of female enslavement.
The advertisement is vulgar and offensive to women. In September 2010, the CCC held that Ad
copy slave by choice does not connote female enslavement. The advertisement is not likely to
cause grave or widespread offence.
INJURIOUS OR DANGEROUS ACTS SHOULD NOT BE PUBLICIZED
The ads that promote anything risky or dangerous has to be controlled. That is why ASCI has
intervened in several such cases.
In Vodafone Essar Ltd the ad shown on Colors in 12/2009 shows - character zoozoo planning
to commit suicide by hanging. The complaint received in 12/2009 contended that someone
trying to hang himself in an Ad is not acceptable by society. Ad could be hazardous to young
people. Two similar complaints received against the same TVC. In J anuary 2010, CCC held that
the visual shows a dangerous act which is likely to encourage minors to emulate such acts which
could cause harm or injury. Ad manifests a disregard for safety and encourages negligence. So
TVC was withdrawn.
In Maruti Suzuki India Limited (Maruti Sx4) aired on HBO in 12/2009 TVC shows - a man
dangerously cutting a lady in her car from second lane to take left turn. The car is shown
overtaking 2 cars fast, during this overtake the car is shown to go over lane dividing lines. TVC
encourages reckless driving. In February 2010, relying upon Clause B of the Guidelines on
Advertisements for Automotive Vehicles the CCC held that the visual encourages unsafe and
reckless driving which could harm the driver, passengers or general public. So the TVC was
modified.
In Mahindra Two Wheelers Ltd (Mahindra Flyte Power Scooter) the ad appeared in The Times
of India in 1/2010 states - 3 idiots 2 wheels 1 smashing hit. Ad shows - 3 persons without
wearing helmet on a 2 wheeler. The complaint received in 1/2010 alleged that they are not
supposed to avoid helmet while riding a 2 wheeler and only two persons are allowed while
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riding. Three similar complaints were also received against the same Ad. In February 2010, on
the basis of Clause A of the Guidelines on Advertisements for Automotive Vehicles it was held
by CCC that the picture of three persons on the scooter without wearing helmets portrayed
violation of Traffic Rules. Ad was a one-time release. Advertiser assured that the said Ad will
not be published in future.
CONCLUSION
Without legislations and judicial interference it is really difficult to regulate the behaviour and
conduct of the members of the society. But if authorities like ASCI work honestly and sincerely,
the self regulatory mechanism can prove much better and convenient mode of regulation. From
the above data it is evident that ASCI is really playing its role in direction of consumer
protection.
BIBLIOGRAPHY
BOOKS AND ARTICLES
1. ASCI, Report of Consumer Complaints Council (CCC), April to October 2010
2. ASCI, Report of Consumer Complaints Council (CCC), April 2009 to March 2010
3. Keval J . Kumar, Media Education, Regulation and Public Policy in India
www.diplomatie.gouv.fr/fr/IMG/pdf/KevalKumar.pdf
4. Dr. Madhulika Agrawal, Consumer Protection- Whose Responsibility, Shodh,
Samiksha aur Mulyankan (International Research J ournal)ISSN-0974-2832 Vol. II,
Issue-5 (Nov.08-J an.09)
5. Nupur, Advertising Ethics & Laws 210.212.119.186/studymaterial/pgdapr/pgdapr-
103.pdf
6. P. Uma Sailaja, Avenues Amid Advertising Regulations for Socially Unacceptable
Products with Special Focus on Alcohol, Part VII Regulations & Marketing,
International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK
7. Pachali Das, A Conceptual Review of Advertising Regulations and Standards: Case
Studies in the Indian Scenario International Marketing Conference on Marketing and
Society, 8-10 April 2007, pp 743-752.
8. Rossiter, J ohn R., Does TV Advertising Affect Children?J ournal of Advertising
Research, Vol 19 (February 1979) pp 49-53
9. S. S. Kaptan, Advertising Regulations, Sarup & Sons, New Delhi (2003)
10. S. S. Singh and Sapna Chadha, Consumer Protection in India: Some Reflection,
Published by Indian Institute of Public Administration, New Delhi. (2006)
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11. Thomas E Berry, A Framework for Ascertaining Deception in Children's Advertising
J ournal of Advertising, Vol. 9, No. 1 (Winter, 1980), pp. 11-18
CASES REFERRED
1. Complaint against Aswini Homeo & Ayurvedic Products Ltd (Aswini Homeo Arnica
Hair Oil) decided by CCC, April 2010
2. Complaint against Bajaj Auto Ltd (Bajaj XCD Motorbike), decided by CCC, J une 2009
3. Complaint against Cipla Ltd (i-pill), decided by CCC, October 2009
4. Complaint against Coca-Cola India Pvt Ltd (Sprite), decided by CCC, September 2010
5. Complaint against Cosmetic, Plastic Surgery and Laser Super Specialties (Permanent Fat
Removal), decided by CCC, May 2009
6. Complaint against Dabur India Ltd (Dabur Pudin Hara Lemon Fizz) Complan Memory,
decided by CCC, August 2010
7. Complaint against GlaxoSmithKline Consumer Healthcare Ltd Boost health drink,
decided by CCC, December 2009
8. Complaint against Godrej Sara Lee Ltd (Good Knight Aerosol), decided by CCC, April
2010
9. Complaint against Hardcastle Restaurants Pvt Ltd (McDonalds Happy Meal), decided
by CCC, October 2010
10. Complaint against Hero Honda Motors Ltd (Hero Honda Motorbike), decided by CCC,
J une 2009
11. Complaint against Hindustan Unilever Ltd (Axe Twist Deodorant), decided by CCC,
August 2010
12. Complaint against Hindustan Unilever Ltd (Close Up Toothpaste), decided by CCC, J uly
2010
13. Complaint against Hindustan Unilever Ltd (Pureit Water Purifier), decided by CCC, J uly
2010
14. Complaint against in Rajasthan Patrika Pvt Ltd , decided by CCC, May 2009
15. Complaint against Levis Strauss (I) Ltd (Levis Innerwear for J eans), decided by CCC,
August 2009
16. Complaint against Mahindra Two Wheelers Ltd (Mahindra Flyte Power Scooter) decided
by CCC, February2010
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17. Complaint against Mankind Pharma Limited (Manforce Condoms), decided by CCC,
August 2009
18. Complaint against Mankind Pharma Ltd (Unwanted 72), October 2009
19. Complaint against Mankind Pharma Ltd (Unwanted 72), September 2010
20. Complaint against Maruti Suzuki India Limited (Maruti Sx4), decided by CCC, February
2010
21. Complaint against Nirali Appliances (Nirali Energy Saver) decided by CCC, J uly 2010
22. Complaint against Novartis India Ltd (Otrivin Nasal Spray) Saatchi & Saatchi, decided
by CCC, December 2009
23. Complaint against Parle Agro Pvt. Ltd (LMN J uice), decided by CCC, August 2010
24. Complaint against Parle Agro Pvt. Ltd (LMN J uice), decided by CCC, J une 2010
25. Complaint against Ramdev Foods Products Pvt Ltd, decided by CCC, May 2009
26. Complaint against Reliance Communications Ltd decided by CCC, December 2009
27. Complaint against Unicharm India Pvt Ltd (Mamy Poko Pants) Dabur health drink,
decided by CCC, J uly 2010
28. Complaint against Vanesa Inc (Denver Deodorant), decided by CCC, August 2010
29. Complaint against Vodafone Essar Ltd, decided by CCC, J anuary 2010
30. Complaint against Yum! Restaurants (India) Pvt Ltd (Masala Cheesy Bites) decided by
CCC, J anuary 2010