Emerging Trends in Global Business

EMERGING TRENDS IN
GLOBAL BUSINESS
Edited By
FIRST EDITION Dr.P.V.Prabha

S.Viswanathan &
A.Prasath Kumar
RVS Institute of Management Studies &

RVS College of Engineering & Technology
Department of Management Studies
Kumaran Kottam Campus, Kannampalayam,
Coimbatore 641 402
Note from the Editors
No part of this publication should be reproduced, stored in a retrieval system,

or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording and/or otherwise without the prior written permission of the author and the
publisher,
First Edition: 2011
DISCLAIMER
The authors are solely responsible for the contents of the papers compiled in
this volume. The publishers or editors do not take any responsibility for the same in
any manner.
Publishers Identifier Number : 909150
Category No : 5
ISBN : 978-93-81537-00-8
Published by
NCRC Publications,
687, Oppanakara Street,
Coimbatore- 1.
Phone: 9843423321
Email: ncrcparveen@gmail.com
FOREWORD MESSAGE
Dr.P.V.Prabha
Director - RVS IMS
I congratulate the conference coordinators and staff members of RVS Institute

of Management Studies and RVS College of Engineering and Technology,
Department of Management Studies for organizing this one day national conference
on Emerging Trends in Global Business. This book is a compilation of papers
presented in the conference. The basic purpose of any conference like this is to bring
out the findings of researcher in the form of papers on a theme, to provide a platform
for discussion and to disseminate this knowledge to the public.
Crisis is increasingly used as an excuse for bad performance at all levels thus
limiting the search for routes out of it. It should not be seen as a destroyer but as a
purifier, ensuring the survival and prosperity of the fittest. Business environment has
changed and will be changing more than ever in years that are to come - some
traditionally powerful markets have weakened while others have grown, cultural and
geographical distances between people are fading, innovation in all aspects has
become paramount for companies sustainable competitive advantage. How to deal
with fast changing environment and how to deal with its outcomes presents an
important issue to be tackled by both academics and practitioners.
The purpose of this conference is to provide a research forum for academics

and practitioners engaged in generating insights for doing business in turbulent
environment. This book provides an opportunity for an interdisciplinary take on this
issue from HR, Marketing, Finance, General Management, Production and
Entrepreneurship viewpoints.
ACKNOWLEDGEMENT
With the blessings of our beloved chairman Dr.K.V.Kuppusamy, Trustee Tmt.Padmavathi

Kuppusamy and under the guidance if our Managing Trustee Shri.K.Senthil Ganesh, RVS College if
Engineering and Technology and RVS Institute of Management Studies has organized a one day
National Conference on Emerging Trends in Global Business on 10th September 2011.
We take great pleasure to extend whole hearted gratitude to the intellectual community who
contributed their valuable studies and thoughts to our national conference on Emerging Trends in
Global Business.
We extend our sincere gratitude to the Chief Guest Shri.M.Settu, President, Coimbatore
Productivity Counsel and CEO, Syndicate Exports Limited, Coimbatore,, who inaugurated this
conference and Lion.K.G.Ramakrishna Murthy, Director, PAST International, Coimbatore, who
delivered the special address.
Our national conference was enriched by the presence of the Chairpersons

Dr.R.Karuppasamy, Dean, SNS College of Technology, Coimbatore, Dr.R.Saravanan, Director,
VLB Janakiammal College of Engineering and Technology, Dr.L.Manivannan, Reader, Erode Arts
and Science College, Erode, Dr.R.Vijayakumar, Assistant Professor, Govt. Arts College, Coimbatore,
Dr.J.Shanthi Lakshmi Assistant Professor (HR), Sardar Vallabhbhai Patel International School of
Textiles and Management, Coimbatore. We thank them wholeheartedly.
We are very much thankful to our beloved Director Dr.P.V.Prabha and Principal
Dr.V.Gunaraj for their valuable support and guidance for conducting this conference.
We extend our warm thanks to our rapporteurs of the sessions for conducting the technical
sessions in a successful manner.
We thank all our faculty members and students for their wholehearted support rendered for
organizing this national conference a remarkable one.
And finally, we would likely to express our thanks to the Publisher NCRC Publications for
bringing out the research articles as book of edited volume.
Dr.P.V.Prabha
Prof. S.Viswanathan &
Prof. A.Prasath kumar,
Conference Conveners
CONTENTS
Page
S.No. Title
No.
MARKETING
CONSUMERS SATISFACTION ON THE SERVICES OF THE

DEPARTMENTAL STORES IN COIMBATORE
Dr.R.Vijayakumar, Assistant Professor, Department of Commerce, Government
1 1
Arts College (Autonomous), Coimbatore -641 019
Dr.G.Kavitha, Assistant Professor, Department of Commerce, Government Arts
College (Autonomous), Coimbatore -641 019
GREEN MARKETING
2 Mr.J.Almson- MBA, PGDED Asst. Professor, RVS Faculty of Management, 15
Coimbatore
SME MARKETING
3 21
S.Indirani, Asst. Professor, STET school of Management, Mannargudi
MARKETING INNOVATION
4 25
R.Karthika, Asst.Professor, M.A.M. B School, Trichy
THE IMPACT OF ADVERTISING AND PRICE PROMOTION ON BRAND

EQUITY - Mr. Srinivasan.K, B.Tech, MBA, Student, School of Management
5 28
Studies, Vel Tech Dr.RR & Dr.SR Technical University Avadi, Chennai 600
062
LUXURY MARKETING
6 P.RAJKUMAR, MBA, PGDCA, 36
V.MEERA Mcom, M.Phil, (PhD), Vel Tech Ranga Sanku College
LATEST TRENDS IN LUXURY AND LIFESTYLE RETAIL IN INDIA A
MULTIFACETED MARKET
7 39
N.Ramkumar, Assistant professor/MBA, Selvam college of Technology,
Namakkal
A STUDY ON RURAL MARKETING STRATEGY FROM COCO- COLA

8 42
V.Uma maheswari Kuriji College of Engineering and Technology, Manaparai
CUSTOMER RELATIONSHIP MANAGEMENT - Shanmukavadivoo S.R.M

9 Research Scholar (M.Phil), Karpagam University, Coimbatore., 46
Dr. N. Shani, Director, Akshaya Institute Of Management Studies, Coimbatore
GREEN MARKETING A PERSPECTIVE
10 Dr. R. Amutha Associate Professor, Justice Basheer Ahmed Sayeed College for 49
Women (Autonomous), Chennai
CUSTOMER RELATIONSHIP MANAGEMENT
11 53
Mrs.G.Vijayalakshmi, Asst.Professor, STET School of Management
GREEN MARKETING ISSUES AND CHALLENGES
12 Praveen Kumar.T Lecturer - St.Peters College Of Engineering And 56
Technology,Chennai
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
13 Mohamed Naimudeen. A, Assistant Professor, Department of Management 59
Studies, St.Michael Engineering College.
CUSTOMER AND BRAND EQUITY
14 Mrs. K.R. Padma Priya M.com., M.Phil., M.B.A., Research Scholar & Asst 62
Professor, Anna Adarsh College For Women, Chennai 600040.
MARKETING STRATEGIES FOR SERVICE FIRMS
15 Mrs. R. M. Shanthi, Head , B.Com ( Bank Management), R. B. Gothi Jain 65
College For Women Redhills , Chennai
CONCEPTUALIZING, MEASURING, AND MANAGING CUSTOMER-
BASED BRAND LOYALTY
16 Dr. V.N. JOTHI, Associate Professor, Department of Commerce, Kanchi Shri 67
Krishna College of Arts and Science College
Kilambi, Krishnapuram 631 551, Kanchipuram
SERVICE MARKETING IN BANKING SECTOR - Mrs. S.Punitha Devi,
Assistant Professor, Kongunadu Arts & Science College, Coimbatore., Mrs.R.
17 72
Rajalakshmi, Department of Commerce, Kongunadu Arts & Science College,
Coimbatore.
RURAL MARKETING TRIBULATIONS AND CHALLENGES IN INDIA
Mr.M.Ramesh Kanna, Assistant Professor, CARE School of Management,
18 75
Trichy, Mr.J.Chandrakhanthan, Assistant Professor, M.A.M. B School,
Siruganur, Trichy 621 105
GREEN MANAGEMENT
J.Shanmuganathan / Associate Professor/ K.S.R. School of Management,
Tiruchengode., A.S.Sathishkumar / Assistant Professor / K.S.R. School of
19 78
Management, Tiruchengode. C.Vinodkumar / Assistant Professor / K.S.R. School
of Management, Tiruchengode.
S.Thiriveni Sripriya / Assistant Professor/ Janson school of business, Coimbatore
CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALS
20 Mr.R.Thirunavukkarasu, Lecturer, Mr.A.Pughazhendi, Research Scholar, Mr.V.Arun Birla,
81
Student, Muthayammal Engineering College, Rasipuram
LUXURY MARKETING - Ms. M. Ramya, Ms. B. Susithra Students Vasavi
21 83
Vidya Trust Group Of Institutions
GREEN MARKETING - S BHUVANESHWARI, Student, Business
22 86
Administration, Vel Tech Ranga Sanku Arts College
SYNTHESIZING SYSTEM WITH CRM IN BANKING INDUSTRY -
23 S.Muralidhar, R.Seranmadevi, S.Piradeep Assistant Professor(s) KSR School of 88
Management, KSR College of Technology, Tiruchengode
DYNAMIC SCENARIO OF CUSTOMER RELATIONSHIP MANAGEMENT
24 IN RETAILING - DR. P. SHYAMALA M.B.A., M.PHIL., PH.D., ASST. 91
PROFESSOR, DEPT. OF IT & M, FATIMA COLLEGE, MADURAI 625018.
AN EMPIRICAL INVESTIGATION ON IMPACT OF SUPPLIER-
SELECTION, SUPPLY EFFORT MANAGEMENT, LOGISTICS
CAPABILITIES AND SUPPLY CHAIN MANAGEMENT STRATEGIES ON
25 94
FIRM PERFORMANCE
Mrs.M.Meena, Asst.Prof., Michael institute of Management, Madurai,
Mr.D.M.Sezhiyan, Asst.Prof., National Institute of Technology, Trichy,
INTERACTIVE MARKETING AND SOCIAL MEDIA
Mrs P. ANNAPURANI ,M.A, M.Phil, (Ph.D), Lecturer, Vel Tech Engineering
26 College, Vel Tech Road, Chennai . 98
Mrs. P. R. JAEL PERSIS, M.A., M.Phil, B.Ed.,Lecturer, Vel Tech High Tech Dr.
RR and Dr. SR Engineering college
BUYING BEHAVIOR OF CONSUMER TOWARDS KHADI(KVIC) WITH
SPECIAL REFERENCE TO MADURAI CITY
27 101
Mrs S.Rosary Arul Kavitha Asst.professorMichael Institute of Management
Madurai
A STUDY ON CUSTOMER PREFERENCE AND SATISFACTION
TOWARDS RETAIL OUTLETS, CHENNAI
28 105
Ms.Janet Glory M C, Lecturer, Department of Management Studies,
Rajalakshmi Institute of Technology, Chennai
CONSUMERS PERCEPTION ON COMPARING QUALITY OF CELEBRITY
AND BRAND FEATURES IN ADVERTISEMENT
29 109
K.KANNAN M.B.A; M.PHIL, B.SATHEESH RAJA, ASSISTANT
PROFESSORS RVS INSTITUTE OF MANAGEMENT STUDIES
COMPETITIVE ADVANTAGE THROUGH CORPORATE SOCIAL
RESPONSIBILITY PRACTICES
30 Dr. S. Jaya Bharathi, Ms. R. Ananthi and Mr. Y. Babu Vinothkumar Faculty 112
Members Department of Management Studies and Research, Coimbatore
Institute of Engineering and Technology
A STUDY ON CUSTOMER SATISFACTION ON AYURVEDIC
HEALTHCARE SERVICES
Dr.A.Lakshmi Director, School of Management, K.S.Rangasamy College of
31 115
Technology, Tiruchengode.
V.S.Vijaya Chander Assistant Professor and Research Scholar, School of
Management, K.S.Rangasamy College of Technology, Tiruchengode
ONLINE PURCHASE INTENTIONS A STUDY OF ANTECEDENT
VARIABLES
32 Anu George Viswajyothi College of Engineering and Technology, Vazhakulam, 119
Kerala, S. Ganesan Suguna Spark Business School, Coimbatore
M K Ramachandran Nair IMK, University of Kerala, Trivandrum
SERVICE QUALITY GAP ANALYSIS IN EDUCATIONAL SERVICE
M.Ramakrishnan M.Tech., MBA., M.Phil, (Ph.D), Assistant Professor,
33 125
Department of Management Studies, K.S. Rangasamy College of Technology,
Tiruchengode 637209
SERVICES MARKETING AND MANAGEMENT
Mr.G.Nagamanickam, Lecturer in Management Studies, Muthayammal
34 129
Engineering College, Rasipuram & Ms.S.Dhivya, M.B.A. (II year), Dept of
Management Studies, Muthayammal Engineering College, Rasipuram
BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
35 K.Damodaran, Asst.prof, Professional School of Management, 132
N.Aarthy, Asst.prof, Professional School of Management.
THE PARADIGM SHIFT UNORGANISED TO ORGANISED RETAILING -
36 S. ANITHA, Assistant Professor, Department of Management Studies, Tagore 134
Engineering College, ChennaI
CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN INDUSTRIES
- Ms. A.Jayanthi MBA, M.Phil, PGDCA, (PH.D, Assistant Professor,
37 139
Department of Management Sciences, D J Academy for Managerial Excellence,
Coimbatore =641032
BUILDING SUCCESSFUL INDIAN RETAIL BRANDS
38 143
Dr.R.Karuppasamy,Director- SNS College of Engineering, Coimbatore
Mr.N.Ramesh Kumar MBA., (Ph.D), Research Scholar
Asst. Professor, Nehru College of Management, Coimbatore
AN EMPIRICAL ANALYSIS ON FACTOR INFLUENCING THE PURCHASE
BEHAVIOUR OF BEVERAGE PRODUCTS BY THE CONSUMERS IN
39 SALEM DT. 145
P.Arun, Research Scholar, BSMED, Bharathiar university, Coimbatore,
Tamilnadu, India
FORECASTING IN FASHION MARKETING
Dr.R.Karpagam, Associate Professor Professional School of Management Palladam
40 152
Mr.A.Mohammed Yasser Arafath, Ph.D Scholar Dr.NGP Institute of Management
Coimbatore
EMERGING GREEN MARKETING TRENDS

Mrs.C.Indhumathi, Assistant Professor and Ph.D Research Scholar, Department
41 of Commerce, Karpagam University, Coimbatore 21. 155
Dr.P.Palanivelu, Professor, School of Commerce and Management, Karpagam
University,Coimbatore21
ROLE OF ADVERTISING IN AUTOMOBILE BRAND SELECTION

42 N.Krishnaveni MBA., Research Scholar Mother Teresa Womens University, 157
Kodaikanal.
FINANCE
43 GLOBAL PRACTICES IN INDIAN BANKING INDUSTRY
L.Meena, Assistant Professor, Department of Management Studies, Fatima 160
College (Autonomous), Madurai 18
44 CONTEMPRARY ISSUES IN BANKING
Name : M.Hemasundari, Asst. Professor, STET school of Management, 164
Mannargudi
45 FINANCIAL MARKETS INTEGRATION IN INDIA
B.ALAGARSAMY & C.Prabu Asst.Professor, Dept. of Management Studies, 167
St.Michael College of Engg.and Tech., Kalayarkoil 630 551, Sivagangai Dist.
46 CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING INDUSTRY
MR.R.SENTHIL KUMARAN, HOD/MBA, Selvam College of Technology, 170
Namakkal
47 A STUDY OF THE PATENTABILITY OF FINANCIAL INNOVATIONS IN
INDIA
173
Dr.S.RADHIKA,M.Com.,M.Phil., Ph.D., Professor, MBA Department,
VELTECH Dr.RR & Dr. SR TECHNICAL UNIVERSITY, Avadi, Chennai
48 DERIVATIVE MARKET IN INDIA A GROWTH PERSPECTIVE
Dr.R.Karuppasamy M.Com., MBA. M.Phil. Ph.D, Director-Academic &
Research, Nehru Institute of Management Studies, Coimbatore-641 105 177
Mr. S.Viswanathan, Research Scholar, Bharathiar University &
Assistant Professor, RVS Institute of Management, Coimbatore
49 INTERNATIONAL MONEY MARKET - EUROCURRENCY MARKET
Dr. M.BALAMURUGAN & A.V.KARTHICK, Asst. Professor, Dept. of
182
Management Studies, St.Michael College of Engg & Tech., Kalayarkoil -630
551.
50 MOTIVES FOR MERGERS AND ACQUISITIONS IN THE INDIAN
BANKING SECTOR A NOTE ON OPPORTUNITIES & IMPERATIVES
Ms.J.Aarthi, MBA, M.Phil & Mr.P.S.Sridharan, MBA, M.Phil 185
Assistant Professor,Department of Management Studies, Guru Nanak
College,Velachery,Chennai-42
51 INNOVATIVE FINANCIAL INSTRUMENT - CARBON CREDITING &
CARBON TRADING
T.Suganthalakshmi, Assistant Professor, School of Management Studies, Anna
189
university of technology,.
Dr.C.Muthuvelayutham, Assistant Professor, Directorate of online and distance
Education Anna University of Technology, Coimbatore
52 INVENTION OF IDEAS AND STRATEGIES IN INVESTING
Mr. K. Damodaran, Asst. Prof, Professor School of Management 193
53 AN ANALYSIS OF FINANCIAL BEHAVIOUR OF INVESTORS IN

MUTUAL FUND INVESTMENT
195
S.N.Selvaraj, H. Shamin and C.Dhanya, Assistant Professor, Wisdom School of
Management, Udumalpet
54 CONTEMPORARY ISSUES IN E-BANKING
Mrs.D.Charumathi & Mrs.V.Uma Maheswari Department of MBA, Guru 201
Nanak College
55 CONTEMPORARY ISSUES & FUTURE OF INDIAN BANKING SECTOR
G. Kiruthika, Lecturer, SSM College of Engineering, Komarapalayam, Namakkal 204
Dist,
56 THE INITIATIVES AND IMPACT OF INDIAN BANKING SECTOR ON
FINANCIAL INCLUSION
207
S.Vijay Mallik Raj, Assistant Professor, OAA MAVMM School of Management,
Kidaripatti Post,Madurai - 625301
57 MERGERS AND ACQUISITION
KATHIRVEL.K, Assistant Professor, Department of Commerce(UG), Kongunadu
Arts & Science College, 213
P.SOUNDARYAN, Department of Commerce(UG), Kongunadu Arts & Science
College, Coimbatore-29.
58 MERGERS AND ACQUISITION IN INDIA IN THE EMERGING GLOBAL
BUSINESS SCENARIO
216
Mrs.V.O.KAVITHA, Research Scholar, DOMS, Jawaharlal Institute of
Technology,Coimbatore.
59 MUTUAL FUND AND HEDGE FUNDS
Ms. R. PRIYA RATHNA , Faculty, Ms. R. DIVYA & Ms. K. KANMANI 219
Students
60 NON PERFORMING ASSETS PERTAINING TO HOUSING
Mrs.P.Vijaya Lakhsmi, - Assistant Professor, R.V.S. College of Engineering and 223
Technology, Dindigul
61 FOREIGN DIRECT INVESTMENT IN MULTI-BRAND RETAILING
Mr.S.Chelladurai, Assistant Professor, MBA Department, Nehru Institute of
Engineering & Technology Coimbatore 641 105 226
Mrs.K.Sarguna, Assistant Professor, BBM Department, Nehru Arts and Science
College Coimbatore 641 105
62 IMPACT OF GLOBAL FINANCIAL CRISIS ON SHARE MARKET IN INDIA
Dr.S.Gandhimathi, Assistant professor of Economics, Avinashilingam Deemed 230
University for Women, Coimbatore.
63 FOREIGN CAPITAL INFLOWS TO REAL ESTATE INDUSTRY IN INDIA
DURING LIBERALISATION ERA
233
Dr. S.JAYAKKUMAR, Associate professor of commerce, Guru Nanak College,
Chennai-
64 AN OVERVIEW OF HEDGE FUND
Dr.R.Geethalakshmi & Mr.C.Yuvaraj, Assistant Professor, Coimbatore Institute 240
of Management & Technology.
65 E-CRM & BANKING
P. Senthilmurugan, Lecturer, Dept of Management Studies Tagore Engg. 243
College,
66 INVESTMENTS AND RISKS
M.GAYATHRI DEVI M.B.A, RVS INSTITUTE OF MANAGEMENT 251
STUDIES
67 PERSPECTIVES OF SMALL INVESTORS ON INVESTMENT AND RISK
M.Kalavalli, Research Scholar, DOMs,Jawaharlal Institute of Technology,
Coimbatore 254
Dr.P.T.Vijaya Rajakumar, Professor & Director, DOMs, Nehru Institute of
Engineering & Technology, Coimbatore
68 MERGER & ACQUISITION
Ms. R. PRIYA RATHNA (Faculty), Ms. K. MARAGATHAM & Mr. A. 257
BHUVARAGAVAN, VASAVI VIDYA TRUST GROUP OF INSTITUTIONS
69 RECENT TRENDS IN MICRO FINANCE IN INDIA
Mr.M.KARTHIKEYAN, Assistant Professor, Ph.D Research Scholar Department of
Commerce, Karpagam University, Coimbatore. 260
Dr.P.SIVAKAMI, Assistant Professor, Department of Commerce,Govt Arts
College,Coimbatore.
70 FINANCIAL MARKETS INNOVATIONS AND GROWTH
Mrs.S.Sasirekha, Mr.S.Athul Pandey, VLB Janakiammal College of Arts & 262
College
71 A STUDY ON BEHAVIOURAL MAPPING OF INDIVIDUAL
INVESTORS
Dr.Anuvalentina, Mrs V.Eveline Vijaya, Mrs Lydia.H.Swamy, Asst 265
professor, Nirmala college for women ,Redfields Coimbatore
HUMAN RESOURCES
72 TALENT MANAGEMENT
Mr.K.Srivignesh Kumar, Assistant-Professor Department Of Management(U.G) 271
Sree Saraswathi Thyagaraja Colege,Thippampati, Pollachi
73 LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING
S. Muthu Kaleeswaran, Student, K.Ramakrishnan College of Engineering & 274
V.Sruthi, Student, K. Ramakrishnan College of Engineering
74 AN ANALYSIS ON LEADERSHIP BEHAVIOUR AND ITS
EFFECTIVENESS IN INDIAN BUSINESS ORGANISATIONS WITH
SPECIAL REFERENCE TO TAMIL NADU,
276
T. Prakash, ph.d. Research scholar, department of economcs, urmu dhanalakshmi
college Trichy , Dr. S. Mookiah, centre for the study of social exclusion and
inclusive policy, manonmaniam sundaranar university, tirunelveli 627 012
75 CROSS CULTURAL ENVIRONMENT TRAINING
280
Mr.S.Theodore Manova, Asst.Prof, Selvam College of Technology, Namakkal
76 COMPETENCY MAPPING
283
Mr.A.Jayaseelan, Asst.Prof/M.B.A, Selvam College of Technology, Namakkal
77 PERFORMANCE APPRAISAL OF EMPLOYEES
286
R.Sathya Aarthi., Asst.prof, Vel Tech Ranga Sanku Arts College, Chennai
M.R.PRAKASH, MBA, M.PHIL, ASSISTANT PROFESSOR, VEL TECH
RANGA SANKU ARTS COLLEGE.DEPARTMENT OF MANAGEMENT
289
STUDIES, CHENNAI.
K.ANTONY BASKARAN, M.COM, M.PHIL, PGDPM, PH.D, ASSISTANT
PROFESSOR, SACRED HEART COLLEGE, TIRUPATTUR.635601
DEPARTMENT OF COMMERCE
79 CONFLICT MANAGEMENT AND ITS IMPACT ON ORGANIZATION

DEVELOPMENT
Mr.V.Arunkumar, Assistant Professor, Department of management studies, 292
Sudharsan Engineering College, Pudukottai.
Mr. Ram Achuthan, II-MBA, Sudharsan Engineering College, Pudukottai.
80 REWARD & RECOGNITION SYSTEM THAT ARE FOLLOWING IN THE
ORGANISATIONS
294
K. SARULATHA, RS, L. SURESH, STUDENT, MBA DEPARTMENT ,
SUDHARSAN ENGINEERING COLLEGE
81 RECENT TRENDS IN OCCUPATIONAL HEALTH AND SAFETY
MANAGEMENT
297
R.Matheswari, Assistant Professor, Department of MBA, Selvam College of
Technology,, Namakkal, Tamil Nadu, India
82 ANALYSIS AND REVIEW ON STRESS MANAGEMENT IN APPAREL
INDUSTRY.
Prof. A. Srinivasan., MBA., MPhil.,PGDBA.,Department of MBA, Nehru
College of Management & Research Scholar Ph.D, Bharathiyar University, Dr. 299
R. Ganesan, MBA., M.com., MPhil., Ph.D.,PGDCA.,
Principal Sri Venkateswara College of Computer Application & Management,
Ettimadai, Coimbatore
83 QUALITY OF WORK LIFE IN AAVIN MILK COOPERATIVE INDUSTRY
V.Uma., Research Scholar, Karpagam University, Coimbatore
303
Dr. R. Mary Metilda, Associate Professor & Head, School of Business, SNS
College of Technology
84 THE STUDY ON EMPLOYEE RESISTANCE TOWARDS CHANGE WITH
SPECIAL REFERENCE TO RANE BRAKE LINING LTD IN AMBATHUR.
307
Mr. P. Venkatesh, MBA, Lecturer, MBA Dept, Srinivasa Institute of Engineering
and Technology, Chennai 56
85 HR EXCELLENCE IN ORGANIZATIONAL CULTURE MANAGEMENT
K.Uma Shankar, Asst. Prof.,-MBA, Jawaharlal Institute of Technology,
318
Coimbatore.
Govinda Solai, Asst. Prof.,,-MBA(Aero)-NA&AM, NGI, Coimbatore.
86 A STUDY ON JOB STRESS AMONG NATIONALISED BANK EMPLOYEES
IN THANJAVUR DISTRICT
Dr. R. Saminathan, Principal I/C, Bharathidasan University Model College,
321
Aranthangi.
K.Kumar, Assistant Professor,Gnanam School of Business Thanjavur -
Sengipatti 613 402.
87 KNOWLEDGE MANAGEMENT
Ms.M.GUNASUNDHARI, MBA, Assistant Professor, Vel Tech multi tech
Dr.Rangarajan Dr.Sakunthala Engg College, Department of Management Studies,
327
Avadi, Vel Tech Road, Chennai.
R.Saranya, MCA, Lecturer, Vel Tech Ranga Sanku Arts College, Department of
MCA, Avadi, Vel Tech Road, Chennai.
88 TALENT MANAGEMENT :CHALLENGES TO HRM
Lekha.H,MBA,Mphil ,Asisstant Professor,Department of management studies 330
,Adi shankara institute of engineering and technology, kalady ,kerala
M. Jola, Research Scholar, Karpagam University, Coimbatore -21. 332
Dr. N. Shani, Akshya Institute of Management Studies, Coimbatore.
90 EVALUATION OF EFFECTIVENESS OF EXIT INTERVIEW: A STUDY
335
WITH REFERENCE TO IT SECTOR IN CHENNAI CITY
C.Senthil Kumar.,M.Com., M.Phil., M.B.A., (Ph.D) Ph.D., Research Scholar,
University of Madras, Chennai-05
91 HUMAN RESOURCE MANAGEMENT CHALLENGES AND ISSUES
IN BANKING SECTOR IN INDIA
338
C.Loganathan, Department of Management, Email: clogu77@gmail.com
Dr.A.Valarmathi, Professor, RVS-IMS, Kannampalayam, Coimbatore
92 IMPACT OF TALENT MANAGEMENT PRACTICES IN CHENNAI COMPANYS
Dr.A.Velanganni Joseph., Asst Prof., Anna University of Technology,
341
Tiruchirappalli., A.Vanitha.,Asst Prof, St.Micheal College of Eng. And Tech.,
Kalayarkovil
93 TALENT MANAGEMENT- HOW TO RETAIN YOUR BEST PEOPLE
C.V.Suganthamani, Assistant Professor, Guruvayurappan Institute of
347
Management, Navakkarai Coimbatore-105 E-mail-
cv_suganthamani@yahoo.com
94 STRESS AND ITS MANAGEMENT - A rising concern
J. VIJAYA SHANTH, RESEARCH SCHOLAR, DEPT OF COMMERCE,
350
BHARTIYAR U NIVERSITY, COIMBATORE & LECTURER, DEPT OF
COMMERCE, ANNA ADARSH COLLEGE FOR WOMEN , CHENNAI
95 RECRUITING & HIRING
J. Anushya, Department of Management Studies, Karpagam University,
Coimbatore- 641021. 353
Dr.P.Palanivelu, Professor, Department of Management Studies, Karpagam
University, Coimbatore- 641021.
Syed Mansoor Pasha: Asst Prof. Dept of Business Management Lalitha PG 355
College, Venkatapur (V), & Ghatkesar (M). Hyderabad.
MRS. V.KOTHAINAYAKI, HEAD OF THE DEPARTMENT OF
COMMERCE (CORP. SEC.) R.B GOTHI JAIN COLLEGE FOR WOMEN, 359
REDHILLS CHENNAI 52
98 PERFORMANCE AND COMPENSATION MANAGEMENT
MRS.K. KARPAGAMBIGAI, M.COM, M.PHIL., ASSISTANT
362
PROFESSOR,DEPARTMENT OF COMMERCE (BANK MANAGEMENT),
R.B.GOTHI JAIN COLLEGE FOR WOMEN REDHILLS, CHENNAI
99 PERFORMANCE AND COMPANSATION MANAGEMENT
R.KARTHIKKEYAN. Lecturer. & R.VIGNESH WARAN, Student. &
D.KARTHIK. Student. Department of Management Studies,, Kurinji College of 364
Engg & Tech, Manapparai
100 EFFECTIVE PERFORMANCE MANAGEMENT: LINKAGE OF HRM TO
PERFORMANCE MANAGEMENT
367
Mrs. P Sangeetha BE., MBA., (PHD), Assistant Professor, Department of
Management Sciences, D J Academy for Managerial Excellence, Coimbatore
Mrs. K.SABANA ASHMIN, Assistant Professor, Department of Management
Studies, R.V.S. College of Engineering & Technology, Dindigul - 5
Mrs. A. ANANDHI, Assistant Professor, Department of Management Studies, 370
R.V.S. College of Engineering & Technology, Dindigul - 5
Mrs. R. ANITHA, Assistant Professor, Department of Management Studies,
R.V.S. College of Engineering & Technology, Dindigul - 5
102 AN IMPLEMENTATION OF TALENT MANAGEMENT ON SMEs
K.Logasakthi, MBA, Lecturer, VSA School of Management, VSA Group of
373
Institutions Salem.
D.Arul, Lecturer, VSA School of Engineering, VSA Group of Institutions Salem.
M.Vivek, II-MBA, VSA School of Management, VSA Group of Institutions
Salem.
103 HR ISSUES IN MERGERS AND ACQUISITIONS
A.PRABHU, Assistant Professor in Commerce (UG), J.DUKE, Student of III 376
B.Com, Kongunadu Arts and Science College, Coimbatore.
104 A STUDY QUALITY OF WORK LIFE OF WORKERS IN MAGNESITE
INDUSTRY
K.Logasakthi,. MBA., Ph.D,Lecturer, School of Management, VSA Group of
Institutions, Salem.
379
M.Rajeshkumar., MBA., Lecturer, School of Management, VSA Group of
S.Sudharson, II-MBA, Lecturer, School of Management, VSA Group of
105 WORK ENGAGEMENT
R.MANJU SHREE MBA, M.Phil, ( Ph.D), Assistant Professor, RVS Institute of
Management studies, Kumarankottam campus, Kannampalayam,Coimbatore 381
ANN MARY JOSE Student, RVS Institute of Management studies,
Kumarankottam campus, Kannampalayam, Coimbatore 641 402.
ENSURING LEADERSHIP CONTINUITY & BEST PRACTICES IN
SUCCESSION PLANNING 384
S.Viviliya Paulin, Asst.Professor Guruvayurappan Institute of Management,
Coimbatore
107 Leadership for next decade
Deepa Ramachandran , Faculty Member, DBA school of advanced studies,
Bangalore, 387
Dr .P. Karthikeyan, Assistant Professor,Kongu Engineering College,Perundurai,
108 Emerging Trends in Global Business From BREAD BAKER TO BREAD
EARNER The new role of women in managing work and life.
390
Smitha Mathew & G H Kerinab Beenu, AP- MBA, Tagore Engg. College,
Chennai -
396
Lt Col (Retd) AE Charles, Prof, Nehru Institute of Management Studies
110 INTERNATIONAL BUSINESS & CHALLENGES OF HR
T.Kumar M.com., M.Phil. & Delcya Nicholas, Assistant Professor, Department 399
of Commerce, Kongunadu Arts and Science College, Coimbatore 29
111 AN EMPIRICAL RESEARCH ON THE MECHANISM OF
EMPLOYER BRANDING PROCESS
Dr. A. Shameem, Prof & Head, Dept of Management Studies, Tagore
403
Engineering. College, Chennai
R. Maha Prabhu, Asst. Prof., Dept of Management Studies, Tagore Engineering.
College, Chennai
112 RECRUITING AND HIRING
Ms. R. PRIYA RATHNA (Faculty), Ms. S. SOWMYANARAYANI & Ms. K. 407
SUSHMA (Student), VASAVI VIDYA TRUST GROUP OF INSTITUTIONS
113 PERFORMANCE AND COMPENSATION MANAGEMENT
T.Bakkia Rani, II MBA & P.Asha, II MBA, Michael Institute of Management, 409
Madurai.
114 EMERGING TRENDS IN GLOBAL BUSINESS-NEW ROLE OF WOMEN IN
MANAGEMENT
412
Ms.A.J. Freni ,A.P, Department of Management Studies, Tagore Engineering
Collge, Chennai-44
115 AN EMPIRICAL INVESTIGATION TO ASSESS TALENT MANAGEMENT
INITIATIVES OF IT FIRMS IN CHENNAI CITY
415
S. Swathi, Lecturer, Department of Management Studies, Tagore Engineering
College, Chennai.
116 EMPLOYER BRANDING TO ATTRACT AND RETAIN TALENTED
EMPLOYEES
P. Suvitha, Assistant Professor, Guruvayurappan Institute of Management, 420
Coimbatore Palakkad Highway, Navakkarai Post, Coimbatore 641 105
117 A STUDY ON EMPLOYEE ATTRITION RATE SPECIAL REFERENCE TO

IT COMPANIES IN MADURAI
V.B.Devi BALA, Department of Management Studies, Michael Institute of
424
Management, Madurai, Tamil Nadu
Dr.P.Anbuoli, Department of Management Studies, Anna University of
Technology Madurai
118 PERFORMANCE AND COMPENSATION MANAGEMENT WITH SPECIAL
REFERENCE TO IT INDUSTRIES.
Dr.A.Lakshmi1, 1 Director, School of Management, K.S.Rangasamy
429
College of Technology, Tiruchengode.
M.Maheswari, Assistant Professor and Research Scholar, School of Management,
K.S.Rangasamy College of Technology,Tiruchengode
119 NATURE AND CONSEQUENCES OF STRESS AND WORK LIFE
BALANCE
432
DR.S.V.SHINDE, D.A.V.VELANKAR COLLEGE OF
COMMERCE,SOLAPUR
120 PERCEPTION OF EMPLOYEES TOWARDS NEED FOR TRAINING IN
AVIATION INDUSTRIES
435
PROF.J.NIRUBRANI, RVS INSTITUTE OF MANAGEMENT STUDIES,
COIMBATORE.
121 EVOLUTION OF HR PRACTICES IN INDIAN CORPORATE
Mr.S.Karthikeyan, Assistant Professor, Anna University of Technology, CBE 438
Ms.S.G.Aparna Lecturer, Coimbatore Institute of Engg and Technology,CBE
122 RETENTION OF HUMAN RESOURCES- CHALLENGE IN GLOBAL
MANAGEMENT
G.Sivakumar, MBA, Mphil., MA (PMIR)., 441
Assistant Professor, SNR Institute of Management Studies, SNR College,
Coimbatore.
Dr.P.Radha, Associate Professor, RVS Institute of Management Studies, 443
Coimbatore
124 A CASE STUDY ON WORK LIFE BALANCE AMONG THE EMPLOYEES
AT TVS SRICHAKRA LIMITED
B. POONGODI B.Sc.(Agri), MBA, M.Phil,(Ph.D.), Assistant Professor, Dept. 445
OF Mgt. Studies,
SNS COLLEGE OF ENGINEERING, Coimbatore-641107
125 ROLE OF GREEN HR INITIATIVES IN SUSTAINABLE DEVELOPMENT
Elizabeth George (MBA,MPhil,UGC-NET), Asst. Professor, Department of
449
Management Studies, Adi Shankara Institute of Engineering and Technology
126 HR CHALLENGES IN NEW MANAGEMENT PARADIGM: VIRTUAL

ORGANIZATION 452
R. Alamelu, AP, Fatima College, Madurai 18
127 EMOTIONAL INTELLIGENCE AND EMPLOYMENT PRACTICES A
TOOL FORGROOMING EMPLOYEES
455
Dr.J.Senthil Vel Murugan, Faculty-PRIMS,Periyar University
S.Bala Murugan, Assistant professor, RVS Institute of management studies
128 COACHING STRATEGIES TO BE ADAPTED BY ORGANIZATIONS FOR
DIFFERENT BEHAVIOUR STYLES OF AN INDIVIDUALS OPTIMAL
PERFORMANCE
458
Mrs. D.VIJAYALAKSHMI
Assistant Professor, Department of Management, RVS College of Engg. & Tech,
Coimbatore
129 MAKING COUNSELLING EFFECTIVE IN EMPLOYEES CAREER
462
S.Chandra Sekar,II BCA, R.V.S College Of Arts And Science, Sullur.
130 RETENTION OF TALENT MANAGEMENT
Dr.B.ADALARASU MBA., M.Phil, PGDPMIR. HDSE,MISTE ,Ph.D.- Dean
RVS Faculty of Management 463
Mr.K.RAMESH MBA., DISM., (Ph.D) . Assistant Professor, RVS Faculty Of
Management
ENTREPRENEURSHIP
131 NEED AND IMPORTANCE OF ENTREPRENEURSHIP
468
T.Gomathi, Assistant Professor/M.B.A Selvam college of Technology Namakkal,
132 ETHNIC ENTREPRENURSHIP AND MIGRATION
C.LUMINIA VINODHINI, Asst Professor -Dept of Commerce, Anna Adarsh 471
College for women,
133 QUALITIES OF MODERN ENTREPRENEURSHIP
Ms.S.Jagadeeswari, Assistant Professor, Department of Management studies &
474
Ms.D.Durga Assistant Professor,GRT Group of Institutions, BKR College of
Engineering & Technology, Tiruttani, Thiruvallur Dt
134 MICROFINANCE AND WOMEN ENTREPRENEURSHIP
Dr. G. Santhiyavalli, Associate professor & M. Esther Jansi, Lecturer
477
Department of Commerce, Avinashilingam Institute for Home Science and Higher
Education for Women
135 GROWING COMPANIES AND ENTREPRENEURSHIP
Researching the Interface between learning and the Entrepreneurial context. 483
G.Jayanthi, Research Scholar, Karunya University, Coimbatore-641 114
PRODUCTION
IMPACT OF SUPPLY CHAIN MANAGEMENT ON GROWTH PROSPECTS
OF TEXTILES & APPARELS IN SOUTH TAMILNADU.
136 486
N.Amul Praveena.BE,MBA,(PhD), MISTE, Dr. A.Mahadevan, Director, Excel
Business School
A COMPREHENSIVE PRODUCTION SYSTEM IN AN ENGINEERING
137 INDUSTRY - GOVINDA BHAT S Head (Department of Management Studies) 490
ASIET, KALADY
MANUFACTURING AUTOMATION MYTHS AND REALITIES
138 Rejish David Jose.P- Assistant Professor / MBA, Meenashi Sundar.R- II MBA 492
RVS College of Engineering andTechnology.
ROLE OF ADVANCED MANUFACTURING SYSTEMS DURING
BUSINESS TRENDS - RENGANATHAN.R(MBA,MPHIL)
139 494
LECTURER(MBA-DEPT) RAJALAKSHMI INSTITUTE OF TECHNOLOGY,
KUTHAMBAKKAM
ERP IN MIS DEVELOPMENT
140 S.Arul Krishnan, M.Sc, MBA, M.Phil., , Assistant Professor Vel Tech Ranga 498
Sanku Arts College,
E. Narmadha Vel-Tech Ranga Sanku Arts College,
A. Haseena Begum, Student, Vel-Tech Ranga Sanku Arts College, Department of
Management Studies
GENERAL MANAGEMENT
BUSINESS ETHICS
141 Mrs. R. Bhuvaneswari, MBA, M.Phil, MHRM, MDCA, MISTE, UGC-NET. 501
Assistant Professor, STET School of Management, Mannargudi.
INNOVATIVE MANAGEMENT
142 504
- J. Aruna, AP, Thiruvarur
ASSESSING THE INPUTS AND OUTPUTS OF PARTNERSHIP
ARRANGEMENTS FOR HEALTH AND SAFETY MANAGEMENT
143 Palanivel.R.V, Assistant Professor, M.A.M.B-School, Siruganur-621 105, 506
Tiruchirappalli
R.Anbarasan, Assistant Professor, M.A.M. B-School, Siruganur, Tiruchirappalli,
A Case Study of Vishranthi
144 Dr. Shanthi Nachiappan, HOD & Prof, Rajalakshmi Institute of Technology, 509
Chennai
WOMEN EMPOWERMENT THROUGH SELF-HELP GROUP
145 P.Murali, Assistant Professor, Department of MBA, Selvam College of 512
Technology, Namakkal,
VIRTUAL MANAGEMENT
146 515
Ms.M.Surya, Asst.Professor, M.A.M. B School, Trichy
CORPORATE SOCIAL RESPONSIBILITY IN INDIA
Mr.R.A.Ayyapparajan Asst. Professor ,Mr.B. Sathishkumar Asst.Professor,
147 518
A.Elgin Asst.Professor, School of Management , V.L.B. Janakiammal College of
Engineering and Techonology, Coimbatore
INNOVATION MANAGEMENT
B.DivyaPriya, Head, Department of Commerce (UG) & Maria Nancy Nicholas II
148 521
B.Com.
Kongunadu Arts and Science College, Coimbatore.
CONTEMPORARY ISSUES IN GLOBAL BUSINESS
A.Anitha Assistant Professor, Department of Management, Sree Saraswathi
149 Thyagaraja college,Pollachi 523
A.Meenakshi Lecturer, Department of Commerce, Avinashilingam University,
Coimbatore
G-EDGE GREEN EDGE EMERALD DOMAIN IN GREEN ENVIRONS
150 526
Mr.M.Thambidurai, Asst.Prof, Professional School of Management.
SOCIAL SUPPORT AND WORK-FAMILY BALANCE -AN OVERVIEW
Dr.N.Brindha, Associate Professor, Department of Management Studies,
151 529
Karpagam College of Engineering, Coimbatore 32.
B.Sharathbabu II MBA, Karpagam College of Engineering, Coimbatore 32.
CORPORATE SOCIAL RESPONSIBILITY AND THE BEVERAGE
ALCOHOL INDUSTRY
152 Ms Prasanthi, Asst Prof. & Ms.SeemaNazneen,AsstProf, Department of Business 532
Management. Lalitha P.G College, Venkatapur (V), Ghatkesar (M). R.R District.
Hyderabad. Andhra Pradesh.
EMERGING TRENDS IN GLOBAL BUSINESS - Charith. B, Sujata Raje and
153 535
Vinoth. S Assistant Professor, Guru Nanak College, Chennai
ORGANIZATIONAL MANAGEMENT
154 Mrs.V.NAGAVALLI, Assistant Professor, R B Gothi Jain College for Women, 538
Red hills, Chennai
BUSINESS ETHICS
Mrs. ANITHA, Mrs. K. SABANA ASHMIN, Mrs. ANANDHI - Assistant
155 541
Professors, RVS COLLEGE OF ENGINEERING AND TECHNOLOGY,
DINDIGUL
Mrs. ANITHA, Mrs. ANANDHI, Mrs. K. SABANA ASHMIN - Assistant
156 544
Professors, RVS COLLEGE OF ENGINEERING AND TECHNOLOGY,
DINDIGUL
PSYCHO SOCIAL FACTORS INFLUENCING WOMEN IN BUSINESS
Dr.S. Sangeetha, Associate Professor & HOD, Department of Management
Studies &
157 548
Mrs.S.U.Silambarasi Assistant Professor, GRT Group of Institutions, BKR
College of
Engineering & Technology, Tiruttani, Thiruvallur Dt.
INNOVATIVE BUSINESS OPPORTUNITIES AND SMART BUSINESS
MANAGEMENT TECHNIQUES FROM GREEN CLOUD (REV 3).
VIJAYKUMAR Thiagarajar School of Management Thirupparankundram,
158 553
Madurai. , C. DHIVAGAR, Thiagarajar School of Management,
Thirupparankundram, Madurai ., R. M. JAGANLAL, Thiagarajar School of
Management, Thirupparankundram, Madurai.
CYBER BULLYING - A COUNTER ATTACK TO BUSINESS ETHICS
Ganesan.D Research Scholar (Management, part time - External), Manonmaniam
159 556
Sundaranar University, Tirunelveli-627012 & Arunkumar. P Final year MBA,
Muthayammal Engineering College, Rasipuram-637 408
EMERGING TRENDS IN FAST FOOD INDUSTRY INDIA
Dr.M.G.Saravanaraj MBA, M.Phil, PhD, Professor& Head /MBA,
160 Muthayammal Engineering College- Rasipuram.., T.Sudha MBA, M.Phil, (PhD), 559
Asst.Prof /RVS Faculty of Management Coimbatore. , A.Brindha MBA,
DBAA, DND, Asst.Prof /RVS Faculty of Management Coimbatore.
NEW ROLE OF WOMEN IN MANAGEMENT
161 Kannammal.A (Lecturer) & Loganathan.v.p (Student)Department of 562
Management Studies, Shree Venkateshwara Hi-Tech Engineering College, Gobi
E-BUSINESS WITH INFORMATION TECHNOLOGY
162 YUVARAAJAA. L, MCA, LECTURER, MCA, VEL TECH RANGA SANKU 566
ARTS COLLEGE, VEL TECH ROAD, AVADI, CHENNAI.
CORPORATE SOCIAL RESPONSIBILITY AND EMERGING TRENDS IN
GLOBAL BUSINESS - S.AARTHI MBA., M, Phil, ASSISTANT PROFESSOR,
163 FATIMA COLLEGE, MADURAI -625002 570
P.ALAGARSAMY M.COM.,M.PHIL.,(PH.D), RESEARCH SCHOLAR, P.G
&RESEARCH DEPT OF COMMERCE, CTA COLLEGE BODINAYAKANUR
CONSTRUCTION AND SELECTION OF CONTINUOUS SAMPLING PLAN
- Radhakrishnan. R Associate Professor, Department of Statistics, P.S.G. College
164 573
of Arts and Science, Coimbatore 641 014., Esther Jenitha.K, Assistant
Professor, RVS Institute of Management Studies, Coimbatore 641 402.
ATTAINMENT OF SUSTAINABLE DEVELOPMENT THROUGH GREEN
MANAGEMENT
165 Vennila Gopal, Assistant Professor, Nehru Arts and Science College, 577
Coimbatore. 105, Dr. K. Shobha, Reader in Economics, Government Arts
College, Coimbatore. 018
MOBILE AD-HOC NETWORK (MANET)
166 A.Savitha, Asst professor, RVSCET, Renuga.A, III B.Sc-IT, Rose Mary College 581
Tirunelveli
167 ERP IN MIS DEVELOPMENT 584
S.Arul Krishnan, M.Sc, MBA, M.Phil., Assistant Professor, Vel Tech Ranga
Sanku Arts College, E. Narmadha Student, Vel-Tech Ranga Sanku Arts College,
A. Haseena Begum Student, Vel-Tech Ranga Sanku Arts College,
THE CONCEPT OF INFORMATION OVERLOAD ISSUES AND
CHALLENGES -
168 Dr.S.Chandrakumaramangalam., Asst. Prof. Department of MBA, Anna 588
University, Cbe. Mrs.P.Nalini, Asst. Prof. Department of MBA, Velalar College
of Engg. and Tech., Erode.
5S A CHALLENGE FOR EVERY HUMAN
Dr. A.G.Sudha Associate Professor, MBA Department, Velalar College of
169 591
Engineering & Technology, Erode, Dr.L.Manivannan Associate Professor and
Research Advisor, Erode Arts College, Erode
DIMENSIONS OF ORGANIZATIONAL CLIMATE AS INFLUENCING
FACTORS AMONG HOSPITAL NURSES
170 M.Lavanya, M.Phil., Doctoral Scholar, BSMED, Bharathiar University, 596
Coimbatore, Dr.K.Malarmathi., Associate Professor, BSMED, Bharathiar
University, Coimbatore
KNITWEAR DEVELOPMENT THROUGH SKILL DEVELOPMENT OF THE
171 WORK FORCE OF TIRUPUR KNITWEAR INDUSTRY- A REPORT 600
Ms. Nisha P. V., Dr. Rupa Gunaseelan
BUSINESS ETHICS, Mrs. ANITHA Assistant Professor, RVS COLLEGE OF
ENGINEERING AND Mrs. K. SABANA ASHMIN, Assistant Professor, RVS
172 612
COLLEGE OF ENGINEERING AND Mrs. ANANDHI, Assistant Professor,
RVS COLLEGE OF ENGINEERING AND TECHNOLOGY, DINDIGUL.
STRATEGIC MANAGEMENT TOOLS IN GLOBAL SERVICES
173 Mr.S.SivaKumar, Assistant Professor, Mrs.S.SathyaKala, Assistant Professor, 615
Department of Commerce, Karpagam University, Coimbatore21
NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT
174 K.E.DEEPA, Mcom, MBA, Asst prof, DEPARTMENT OF MANAGEMENT 618
STUDIES, GURU NANAK INSTITUE, CHENNAI-42.
1
CONSUMERS SATISFACTION ON THE SERVICES OF THE DEPARTMENTAL
STORES IN COIMBATORE
Dr.R.Vijayakumar, Assistant Professor, Department of Commerce, Government Arts College
(Autonomous), Coimbatore -641 019
Dr.G.Kavitha, Assistant Professor, Department of Commerce, Government Arts College
(Autonomous), Coimbatore -641 019
ABSTRACT
The retail sector is the second largest employer after agriculture sector in India. There are
nearly twelve million retail outlets are functioning in India and this sector is highly fragmented and
consists of predominantly of small, independent, and owner managed shops. The departmental stores
offer various facilities and make the shopping as convenient and easy from the point of view of the
customers. The departmental stores fulfill the needs and expectations of the consumers with great
attention. They employ well trained, experienced and motivated staff to serve our valuable customers
with great attention and enthusiasm. The present study is carried on by the researchers with the
primary objective of assessing the level of satisfaction derived by the consumers of departmental stores
in Coimbatore and to find out the factors that influence the same. The study also offers constructive
suggestions for improving the satisfaction of the consumers of departmental stores.
INTRODUCTION
The retail sector is the second largest employer after agriculture sector in India. There are
nearly twelve million retail outlets are functioning in India and this sector is highly fragmented and
consists of predominantly of small, independent, and owner managed shops. There has been a boom
in the retail trade in India owing to a gradual increase in the disposable income of the middle-class
households. More and more players are venturing into the retail business in India to introduce new
attractive retail formats like malls, supermarkets, discount stores, department stores and even changing
the traditional look of the bookstores, chemist shops, and furnishing stores. In the fast moving world,
customers are looking for ambience and convenience while they do shopping and at the same time the
time they prefer to spend only less time for shopping. They prefer to carry out the activity of their
whole purchases under one roof. The departmental stores offer this facility and make the shopping as
convenient and easy from the point of view of the customers.
OBJECTIVES OF THE STUDY:
The present study is carried on by the researchers with the primary objective of assessing the
level of satisfaction derived by the consumers of departmental stores in Coimbatore and to find out the
factors that influence the same.
HYPOTHESES:
In tune with the objective of the study, hypotheses were formulated that the various factors
relating to the sample respondents such as sex, age, monthly family income, frequency of purchase and
average value of consumption and their opinion on price , quality , purity , weights and measure ,
availability of variety of goods , discounts and special offers , services of salesmen , packing ,
amenities and door delivery facilities offered by the departmental stores do not significantly influence
the satisfaction derived by the consumers on the services of the departmental stores in Coimbatore.
METHODOLOGY AND TOOLS USED
The study is based on the primary data and the necessary data required for the study were
collected through the structured interview schedules. Two hundred and fifty consumers of various
departmental stores in this city were selected as sample respondents for the study on the basis of
convenient sampling method. In order to the find out the factors that influence the level of satisfaction
2
derived by the consumers on the services of the departmental stores, Chi square test has been
employed.
LEVEL OF SATISFACTION DERIVED BY THE RESPONDENTS
The sample respondents were divided into three groups in accordance with their satisfaction
scores as less satisfied respondents; medium satisfied respondents and highly satisfied
respondents. Out of two hundred and fifty sample respondents, 40 respondents (16.00%) derived low
level of satisfaction; 98 respondents (39.20%) derived medium level of satisfaction and 112
respondents (44.80%) derived high level of satisfaction on the services of the departmental stores.
Table 1: Level of satisfaction derived by the respondents
Level of Satisfaction No. of Respondents Percentage
Low 40 16.00
Medium 98 39.20
High 112 44.80
Total 250 100
Source: Survey Data
EXTENT OF VARIATION IN THE SATISFACTION DERIVED BY THE SAMPLE
RESPONDENTS:
The extent of variation in the satisfaction derived by the sample respondents in accordance
with their personal factors and their opinion on the various aspects with regard to the departmental
stores is given in the following paragraphs.
SEX GROUP OF THE RESPONDENTS AND LEVEL OF CUSTOMER SATISFACTION

The distribution of respondents in accordance with their sex group and their level of
satisfaction is given in Table 2 and it reveals that out of 250 respondents, one hundred and eighty six
are female respondents (74.40%) and sixty four respondents (25.60%) are male respondents.
Table 2: Sex group and Level of Consumer Satisfaction
Level of Satisfaction
Sex Group Low Medium High Total
Female 31 (16.67%) 78 (41.94%) 77 (41.40%) 186
Male 9 (14.06%) 20 (31.25%) 35 (54.69%) 64
Total 40 98 112 250
Source: Survey data
Figures in the brackets represent the percentage to total

3
Table 2 indicates that the majority of the respondents (74.40%) are female respondents. It
also indicates that the percentage of respondents (14.06%) with low level of satisfaction is the lowest
and the percentage of respondents (54.69%) with high level of satisfaction is the highest among the
male respondents and hence it can be inferred that the male respondents derived higher level of
satisfaction than their female counterparts.
AGE GROUP OF THE RESPONDENTS AND LEVEL OF CUSTOMER SATISFACTION
The distribution of respondents in accordance with their age group and their level of
satisfaction is given in Table 3 and it reveals that out of 250 respondents, sixty respondents
(24.00%) belong to young age group (upto 30 years), eighty six respondents (28.00%) belong to
middle age group (between 31years and 45 years) and the remaining one hundred and twenty
respondents (48.00%) belong to old age group ( above 45 years)
Table 3: Age group and Level of Consumer Satisfaction
Age Group Low Medium High Total
Young 18 (30.00%) 28 (46.67%) 14 (23.33%) 60
Middle 11 (15.71%) 27 (38.57%) 32 (45.71%) 70
Old 11 (9.17%) 43 (35.83%) 66 (55.00%) 120
Total 40 98 112 250
Source: Survey data
Table 3 indicates that the majority of the respondents (48.00%) belong to old age group. It
also indicates that the percentage of respondents (9.17%) with low level of satisfaction is the lowest
and the percentage of respondents (55.00%) with high level of satisfaction is the highest among the old
age group respondents and hence it can be inferred that the respondents who belong to old age group
derived higher level of satisfaction than the other categories of respondents.
MONTHLY FAMILY INCOME OF THE RESPONDNETS AND LEVEL OF CUSTOMER

SATISFACTION
The distribution of respondents in accordance with their monthly family income and their
level of satisfaction is given in Table 4 and it reveals that out of 250 respondents, fifty seven
respondents (22.80%) belong to low monthly income category (upto Rs. 7500/ - as monthly family
income), the monthly family income for the one hundred and six respondents (42.40%) is medium
(between Rs. 7501/- and Rs. 12500/-) and eighty seven respondents (34.80%) fall under high monthly
family income category (above Rs. 12500 as monthly family income).
4
Table 4: Monthly Family Income and Level of Consumer Satisfaction
Monthly Family
Income Total
Low Medium High
Low 15 (26.32%) 30 (52.63%) 12 (21.05%) 57
Medium 11 (10.38%) 37 (34.91%) 58 (54.72%) 106
High 14 (16.09%) 31 (35.63%) 42 (48.28%) 87
Total 40 98 112 250
Source: Survey data
Table 4 indicates that the majority of the respondents (42.40%) belong to medium income
category. It also indicates that the percentage of respondents (10.38%) with low level of satisfaction is
the lowest and the percentage of respondents (54.72%) with high level of satisfaction is the highest
among the respondents who belong to medium level income category and hence it can be inferred that
the respondents who belong to medium level income category derived higher level of satisfaction than
the respondents who belong to other income categories.
FREQUENCY OF PURCHASE OF GOODS BY THE RESPONDENTS AND LEVEL OF

SATISFACTION
The distribution of respondents in accordance with their frequency of consumptions of goods
from the departmental stores and their level of satisfaction is given in Table 5 and it reveals that out
of 250 respondents, one hundred and seventeen respondents (46.80%) consume the goods at least twice
in a month, eighty six respondents (34.40%) consume at least once in a month and the remaining
forty seven respondents (18.80%) rarely consume the goods from the departmental stores.
Table 5: Frequency of Consumption and Level of Consumer Satisfaction
Frequency of Level of Satisfaction
consumption Low Medium High Total
Twice in a month 11 (9.40%) 36 (30.77%) 70 (59.83%) 117
Once in a month 12 (13.95%) 48 (55.81%) 26 (30.23%) 86
Rarely 17 (36.17%) 14 (29.79%) 16 (34.04%) 47
Total 40 98 112 250
Source: Survey data
Table 5 indicates that the majority of the respondents (46.80%) consume the goods at least
two times in a month from the departmental stores. It also indicates that the percentage of respondents
(9.40%) with low level of satisfaction is the lowest and the percentage of respondents (59.83%) with
high level of satisfaction is the highest among the respondents who consume the goods at least two
times in a month from the departmental stores and hence it can be inferred that the respondents who
make their purchases frequently from the departmental stores derived higher level of satisfaction than
the other categories of respondents.
5
AVERAGE VALUE OF CONSUMPTION AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their monthly family income and their
level of satisfaction is given in Table 6 and it reveals that out of 250 respondents, forty seven
respondents (18.80%) belong to less consumption category (Upto the maximum of Rs. 1000 per
month), sixty two respondents (24.80%) belong to medium consumption category (consumption
between Rs. 1001 and Rs. 2000 per month) and the remaining one hundred and forty one respondents
(56.40%) belong to high consumption category (consumption above Rs. 2000 per month).
Table 6: Average value of consumption and Level of Consumer Satisfaction
Average Value of
Consumption Total
Low Medium High
Less 18 (38.30%) 17 (36.17%) 12 (25.53%) 47
Medium 12 (19.35%) 22 (35.48%) 28 (45.16%) 62
High 10 (7.09%) 59 (41.84%) 72 (51.06%) 141
Total 40 98 112 250
Source: Survey data
Table 6 indicates that the majority of the respondents (56.40%) consume more than two
thousand rupees worth of goods per month from the departmental stores. It also indicates that the
percentage of respondents (7.09%)with low level of satisfaction is the lowest and the percentage of
respondents (51.06%)with high level of satisfaction is the highest among the respondents who consume
more than two thousand rupees worth of goods per month from the departmental stores and hence it
can be inferred that the respondents who consume a considerable amount of goods from the
departmental stores derived higher level of satisfaction than the other categories of respondents.
PRICE OF GOODS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on price of goods in

departmental stores and their level of satisfaction is given in Table- 7 and it indicates that out of two
hundred and fifty respondents, one hundred and twenty nine respondents (51.60%) opined that the price
is less, seventy five respondents (30.00%) expressed that the price is moderate and the remaining forty
six respondents (18.40%) opined that the price of goods in the departmental stores is high.
6
Table 7: Opinion on Price and Level of Consumer Satisfaction
Price
Low Medium High
Total
Less 10 (7.75%) 46 (35.66%) 73 (56.59%) 129
Moderate 14 (18.67%) 35 (46.67%) 26 (34.67%) 75
High 16 (34.78%) 17 (36.96%) 13 (28.26%) 46
Total 40 98 112 250
Source: Survey data
Table- 7 indicates that majority of the respondents (51.60%) opined that the price of goods in
the departmental stores is less. It also indicates that the percentage of respondents (7.75%) with low
level of satisfaction is the lowest and the percentage of respondents (56.59%) with high level of
satisfaction is the highest among the respondents who expressed that the price of goods in the
departmental stores is less and hence it can be inferred that the respondents with the opinion that the
price is less in departmental stores derived higher level of satisfaction.
QUALITY OF GOODS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on quality of goods in

hundred and fifty respondents, forty seven respondents (18.80%) opined that the quality is poor,
seventy seven respondents (30.8%) expressed that the quality is good and the remaining one hundred
and twenty six respondents (50.4%) rated that the quality of goods in the departmental stores as
excellent.
Table 8: Opinion on Quality of Goods and Level of Consumer Satisfaction
Quality Low Medium High

Total
Poor 16 (34.04%) 12(25.53%) 19(40.43%) 47
Good 14 (18.18%) 29(37.66%) 34(44.16%) 77
Excellent 10(7.94%) 57(45.24%) 59(46.83%) 126
Total 40 98 112 250
Source: Survey data
Table- 8 indicates that majority of the respondents (50.40%) opined that the quality of goods
in the departmental stores is excellent. It also indicates that the percentage of respondents (7.94%) with
low level of satisfaction is the lowest and the percentage of respondents (46.83%) with high level of
satisfaction is the highest among the respondents who expressed that the quality of goods in the
departmental stores is excellent and hence it can be inferred that the respondents with the opinion that
the quality of goods in departmental stores is excellent derived higher level of satisfaction.
7
h. PURITY OF GOODS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on purity of goods in the
hundred and fifty respondents, forty nine respondents (19.6%) expressed that the goods are less pure,
sixty nine respondents (27.6%) opined that the goods are pure and the remaining one hundred and
thirty two respondents (52.8%) opined that the goods are very pure in departmental stores.
Table 9: Opinion on Purity of Goods and Level of Consumer Satisfaction
Purity Low Medium High Total
Less Pure 13 (26.53%) 19(38.78%) 17(34.69%) 49
pure 13(18.84%) 25(36.23%) 31(44.93%) 69
Very pure 14(10.61%) 33(25.00%) 85(64.39%) 132
Total 40 98 112 250
Source: Survey data
Table- 9 indicates that majority of the respondents (52.80%) opined that the goods in the
departmental stores are very pure. It also indicates that the percentage of respondents (10.61%) with
low level of satisfaction is the lowest and the percentage of respondents (64.39%) with high level of
satisfaction is the highest among the respondents who expressed that the goods in the departmental
stores are very pure and hence it can be inferred that the respondents with the opinion that the goods
available in departmental stores are very pure derived higher level of satisfaction.
WEIGHTS AND MEASUREMENTS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on weights and measures in
departmental stores their level of satisfaction is given in Table- 10 and it indicates that out of two
hundred and fifty respondents, thirty eight respondents (15.2%) opined that the weights and measures
are imperfect, seventy two respondents (28.8%) expressed that the weights and measures are less
imperfect and the remaining one hundred and forty respondents (56.00%) opined that the weights and
measures of the goods in the departmental stores are perfect in departmental stores.
Table 10: Opinion on Weights and Measurements and Level of Consumer Satisfaction
Weights and
Low Medium High Total
Measurements
Imperfect 15(39.47%) 12(31.58%) 11(28.95%) 38
Less Imperfect 13(18.06%) 28(38.89%) 31(43.06%) 72
Perfect 12(8.57%) 58(41.43%) 70(50.00%) 140
Total 40 98 112 250
Source: Survey data

8
Table- 10 indicates that majority of the respondents (56.00%) opined that the weights and
measure are perfect in the departmental stores. It also indicates that the percentage of respondents
high level of satisfaction is the highest among the respondents who expressed that the weights and
measure are perfect in the departmental stores and hence it can be inferred that the respondents with the
opinion that the weights and measure are perfect in the departmental stores derived higher level of
satisfaction.
AVAILABILITY OF VARIETY OF GOODS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on availability of variety of

goods in departmental stores and their level of satisfaction is given in Table- 11 and it indicates that out
of two hundred and fifty respondents, thirty five respondents (14.00%) opined that the goods offered in
the departmental stores are less in variety, sixty seven respondents (26.80%) expressed that the variety
of goods is more and the remaining one hundred and forty eight respondents (59.20%) opined that the
goods offered by the departmental stores are plenty in varieties.
Table 11: Opinion on Availability of variety of goods and Level of Consumer Satisfaction
Availability of variety
of goods
Less 13 (37.14%) 11(31.43%) 11(31.43%) 35
More 16(23.88%) 29(43.28%) 22(32.84%) 67
Plenty 11(7.43%) 58(39.19%) 79(53.38%) 148
Total 40 98 112 250
Source: Survey data
Table- 11 indicates that majority of the respondents (59.20%) opined that the departmental
stores offer plenty of varieties of goods. It also indicates that the percentage of respondents (7.43%)
with low level of satisfaction is the lowest and the percentage of respondents (53.38%) with high level
of satisfaction is the highest among the respondents who expressed that the availability of varieties of
goods in departmental stores is plenty and hence it can be inferred that the respondents with the opinion
that the departmental stores offer plenty of varieties of goods derived higher level of satisfaction.
DISCOUNTS AND SPECIAL OFFERS AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on discounts and special
offers offered by the departmental stores and their level of satisfaction is given in Table- 12 and it
indicates that out of two hundred and fifty respondents, forty nine respondents (19.60%) opined that
the departmental stores offer less discounts and special offers, ninety seven respondents (38.80%)
expressed that the discounts and special offers are moderate and the remaining one hundred and four
respondents (41.60%) opined that the departmental stores offer more discounts and special offers.
9
Table 12: Opinion on Availability of Discounts and Special Offers and Level of
Consumer Satisfaction
Discounts and Special
Offers
Less 12(24.49%) 16(32.65%) 21(42.86%) 49
Moderate 16(16.49%) 43(44.33%) 38(39.18%) 97
More 12(11.54%) 39(37.50%) 53(50.96%) 104
Total 40 98 112 250
Source: Survey data
Table- 12 indicates that majority of the respondents (41.60%) opined that the departmental
stores offer more discounts and special offers. It also indicates that the percentage of respondents
high level of satisfaction is the highest among the respondents who expressed that the discounts and
special offers offered by the departmental stores is more and hence it can be inferred that the
respondents with the opinion that the departmental stores offer more discounts and special offers
derived higher level of satisfaction.
SERVICES OF SALESMEN AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on the services of sales men
in the departmental stores and their level of satisfaction is given in Table- 13 and it indicates that out of
two hundred and fifty respondents, forty respondents (16.00%) opined that the services of salesmen
are poor, fifty four respondents (21.60%) expressed that the services of salesmen are good and the
remaining one hundred and fifty six respondents (62.40%) rated the services of salesmen in the
departmental stores as excellent.
Table 13: Opinion on Services of Salesmen and Level of Consumer Satisfaction
Services of Salesmen Low Medium High Total
Poor 16(40.00%) 13(32.50%) 11(27.50%) 40
Good 12(22.22%) 23(42.59%) 19(35.19%) 54
Excellent 12(7.69%) 62(39.74%) 82(52.56%) 156
Total 40 98 112 250
Source: Survey data
Table- 13 indicates that majority of the respondents (62.40%) opined that the services of the
salesmen are excellent in the departmental stores. It also indicates that the percentage of respondents
high level of satisfaction is the highest among the respondents who expressed that the services of the
10
salesmen are excellent and hence it can be inferred that the respondents with the opinion that the
services of the salesmen are excellent in the departmental stores derived higher level of satisfaction.
PACKING AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on the packing of goods in
the departmental stores and their level of satisfaction is given in Table- 14 and it indicates that out of
two hundred and fifty respondents, forty five respondents (18.00%) opined that the packing of goods is
poor in the departmental stores, sixty three respondents (25.20%) expressed that the packing of goods
is good and the remaining one hundred and forty two respondents (56.80%) rated the packing of goods
in the departmental stores as excellent.
Table 14: Opinion on Packing and Level of Consumer Satisfaction
Opinion on Packing Total
Low Medium High
Poor 17(37.78%) 13(28.89%) 15(33.33%) 45
Good 12(19.05%) 33(52.38%) 18(28.57%) 63
Excellent 11(7.75%) 52(36.62%) 79(55.63%) 142
Total 40 98 112 250
Source: Survey data
Table- 14 indicates that majority of the respondents (56.80%) opined that the packing of
goods in the departmental stores is excellent. It also indicates that the percentage of respondents
high level of satisfaction is the highest among the respondents who expressed that packing of goods is
excellent and hence it can be inferred that the respondents with the opinion that the packing of goods in
the departmental stores is excellent derived higher level of satisfaction.
AMENITIES AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on the amenities available in
the departmental stores and their level of satisfaction is given in Table- 15 and it indicates that out of
two hundred and fifty respondents, forty one respondents (16.40%) expressed that the amenities
provided by the departmental stores are poor, sixty eight respondents (27.20%) opined that the
amenities are good and the remaining one hundred and forty one respondents (56.40%) rated the
amenities in the departmental stores as excellent.
Table 15: Opinion on availability of Amenities and Level of Consumer Satisfaction
Availability of
Amenities
Poor 17(41.46%) 12(29.27%) 12(29.27%) 41
Good 12(17.65%) 25(36.76%) 31(45.59%) 68
Excellent 11(7.80%) 61(43.26%) 69(48.94%) 141
Total 40 98 112 250
Source: Survey data

11
Table- 15 indicates that majority of the respondents (56.40%) opined that the availability of
amenities in the departmental stores is excellent. It also indicates that the percentage of respondents
high level of satisfaction is the highest among the respondents who expressed that amenities in the
departmental stores is excellent and hence it can be inferred that the respondents with the opinion that
the availability of amenities in the departmental stores is excellent derived higher level of satisfaction.
DOOR DELIVERY AND LEVEL OF SATISFACTION
The distribution of respondents in accordance with their opinion on the door delivery facilities
provided by departmental stores and their level of satisfaction is given in Table- 16 and it indicates that
out of two hundred and fifty respondents, forty one respondents (16.40%) opined that the door
delivery facilities offered by the departmental stores are poor , fifty six respondents (22.40%)
expressed that the door delivery facilities are good and the remaining one hundred and fifty three
respondents (61.20%) rated the door delivery facilities offered by the departmental stores as excellent.
Table 16: Opinion on Door Delivery facilities and Level of Consumer Satisfaction
Door Delivery Level of Satisfaction

Total
facilities Low Medium High
Poor 15(36.59%) 15(36.59%) 11(26.83%) 41
Good 13(23.21%) 19(33.93%) 24(42.86%) 56
Excellent 12(7.84%) 64(41.83%) 77(50.33%) 153
Total 40 98 112 250
Source: Survey data
Table- 16 indicates that majority of the respondents (61.20%) opined that the door delivery
facilities offered by the departmental stores is excellent. It also indicates that the percentage of
respondents (7.84%) with low level of satisfaction is the lowest and the percentage of respondents
(50.33%) with high level of satisfaction is the highest among the respondents who expressed that door
delivery facilities in the departmental stores is excellent and hence it can be inferred that the
respondents with the opinion that the door delivery facilities offered by the departmental stores is
excellent derived higher level of satisfaction.
FACTORS INFLUENCING THE SATISFACTION DERIVED BY THE RESPONDENTS

The influence of the various factors relating to the sample respondents and their opinion on
various aspects relating to the departmental stores on satisfaction derived by the respondents was tested
with the help of Chi square test and the result of the test is presented in Table 17.
12
Table 17 : Factors influencing the satisfaction derived by the sample respondents Chi Square
Test
Table
S. No Factor d.f Calculated value Significance
Value*
1 Sex 2 11.20 9.210 Significant
2 Age 4 21.03 13.277 Significant
3 Monthly family income 4 19.03 13.277 Significant
4 Frequency of purchase 4 35.79 13.277 Significant
Average value of Significant
5 4 27.75 13.277
consumption
6 Price 4 26.03 13.277 Significant
7 Quality 4 18.69 13.277 Significant
8 Purity 4 16.41 13.277 Significant
9 Weights and measure 4 21.87 13.277 Significant
Availability of variety of Significant
10 4 25.96 13.277
goods
11 Discounts and special offers 4 6.39 13.277 Not Significant
12 Services of salesmen 4 28.95 13.277 Significant
13 Packing 4 32.75 13.277 Significant
14 Amenities 4 27.14 13.277 Significant
15 Door delivery 4 23.83 13.277 Significant
*at 1% Level of Significance
The results of the Chi square indicates that the factors such as sex group of the respondents,
age group of the respondents, monthly family income group of the respondents, frequency of purchase,
average value of consumption and the opinion of the respondents on price, quality, purity, weights and
measure, availability of variety of goods, services of salesmen, packing and amenities significantly
influence the satisfaction derived by the sample respondents. It also indicates that the discounts and
special offers offered by the departmental stores do not significantly influence the satisfaction of the
respondents.
FINDINGS OF THE STUDY
The study revealed that forty respondents (16.00%) respondents derived low level of
satisfaction, ninety eight respondents (39.20%) derived medium level of satisfaction and one hundred
and twelve respondents (44.80%) derived high level of satisfaction on the services of the departmental
stores. The results of the study also indicate that the respondents of the following categories derived
higher level of satisfaction than their counterparts on the services of Departmental stores:
a) Male respondents
b) Old age group respondents
c) The respondents with high Monthly Family Income
d) The respondents with high frequency of consumption
e) The respondents with high average value of consumption
f) The respondents who opined that the price is less
g) The respondents who opined that quality of goods is excellent
h) The respondents who opined that goods are with high purity
i) The respondents who opined that the weights and measure are perfect
j) The respondents who opined that the variety of goods are plenty
k) The respondents who opined that the discounts and special offers are more
13
l) The respondents who opined that the services of the salesmen are excellent
m) The respondents who opined that packing of goods is excellent
n) The respondents who opined that the availability of amenities is excellent and
o) the respondents who opined that the door delivery facilities in the departmental stores is
excellent
The study also revealed that sex group of the respondents, age group of the respondents,
monthly family income of the respondents, frequency of purchase, average value of consumption and
the opinion of the respondents on price, quality, purity, weights and measures, availability of variety of
goods, services of salesmen, packing, amenities and door delivery facilities significantly influence the
satisfaction derived by the sample respondents. It also indicates that the discounts and special offers
offered by the departmental stores does not significantly influence the satisfaction derived by the
sample respondents on the services offered by the departmental stores.
SUGGESTIONS:
In order to improve the satisfaction of the customers of departmental stores, the following
suggestions have been offered by the researchers:
a. Displaying the product details and descriptions at the various points will ease the
identification of the products from the point of the customers and this will enhance customer
satisfaction.
b. The improvement in the basic facilities available at the departmental stores such as the water
and toilet facilities will further improve the customer satisfaction.
c. As the customers in many occasions have to wait in a long queue for payment of bills,
adequate number of additional counters has to be established during the festival and other
peak seasons.
d. As these stores are heavily crowded, adequate ventilations have to be provided to make the
customers more comfortable when they are being inside the stores.
e. Though they are offering the products at competitive prices, still they have to find ways for
further reduction in the prices which will contribute more for higher level of customer
satisfaction.
f. The offering of details regarding the date of manufacturing and date of expiry will strengthen
the trust of the customers on the stores and it will improve their satisfaction also.
g. The superiority in quality of the products supplied by these stores should be of will result in
higher level of customer satisfaction.
h. As the consumers spend a considerable amount of time in the departmental stores at the time
of purchasing the products, the provision of safe and adequate parking facilities will enhance
the customer satisfaction.
i. The departmental stores may consider the provision of clock room facilities to keep the
belongings of the customers.
j. As the customers spend more amount of time in the stores once they enter into the stores for
purchase of goods, provisions have to be created for offering refreshment facilities to the
customers.
k. The salesmen of the stores have to be provided with uniforms and identity cards so as to create
easier identification by the customers.
l. Wherever it is required, the demonstration facilities have to be offered.
m. As the stores are functioning in multistory buildings, the lift provisions have to be created by
the stores.
n. As the customers buy large number of goods from the stores, more attention has to be paid on
proper packing of goods, which will make easier to carry the goods by the customers.
14
CONCLUSION
The departmental stores play an important role in effective performance of consumption and
distribution functions by means of making the availability of different kinds of goods that are required
by variety of consumers under one single roof. The study revealed the level of satisfaction derived by
the consumers of departmental stores in Coimbatore and the factors that influence the same. The study
also offered some constructive suggestions for improving the satisfaction of the consumers of
departmental stores. As the retail industry is gaining its momentum in the recent days, the proper
adoption of the suggestions offered through this study will enhance the satisfaction of the customers
and facilitate the growth of these types of stores as they are capable of fulfilling the needs and wants of
variety of customers.
BIBLIOGRAPHY
1. Levy Weits. 2005. Retailing Management. New Delhi: Tata McGraw Hill
2. Barry Bermand and Joel R. Evans. 2002. Retail Management A Strategic Approach. New
Delhi: Prentice-Hall of India Private Ltd.
3. Frederic A.Russel, Franic H.Beach and Richard H.Buskirt. 1988. Selling principles.
Singapore: McGraw Hill Book Company
4. Tyagi C.L. and Arun Kumar. 2004. Sales Management. New Delhi: Atlantic Publishers &
Distributors
5. Chetan Bajaj, Rajnish Tuli and Nidhi V. Srivastava. 2005. Retail Management. India: Oxford
University Press
6. Gupta, S.P. 2006. Statistical Methods. New Delhi: Sultan Chand and Sons
7. Kothari C.R. 2003. Research Methodology. New Delhi: Wishwa Prakashan
15
GREEN MARKETING
Mr.J.Almson- MBA, PGDED Asst. Professor, RVS Faculty of Management, Coimbatore
INTRODUCTION
Although environmental issues influence all human activities, few academic disciplines have
integrated green issues into their literature. This is especially true of marketing. As society becomes
more concerned with the natural environment, businesses have begun to modify their behavior in an
attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like
environmental management systems and waste minimization, and have integrated environmental issues
into all organizational activities. Some evidence of this is the development of journals such as
"Business Strategy and the Environment" and "Greener Management International," which are
specifically designed to disseminate research relating to business environmental behavior.
One business area where environmental issues have received a great deal of discussion in the
popular and professional press is marketing. Terms like "Green Marketing" and "Environmental
Marketing" appear frequently in the popular press. Many governments around the world have become
so concerned about green marketing activities that they have attempted to regulate them (Polonsky
1994a). For example, in the United States (US) the Federal Trade Commission and the National
Association of Attorneys-General have developed extensive documents examining green marketing
issues (FTC 1991, NAAG 1990). One of the biggest problems with the green marketing area is that
there has been little attempt to academically examine environmental or green marketing. While some
literature does exist [Carlson, Grove and Kangun 1993, Davis 1992, Davis 1993], it comes from
divergent perspectives.
This paper will attempt 1) to introduce the terms and concepts of green marketing; 2) briefly
discuss why going green is important; 3) examine some of the reason that organizations are adopting a
green marketing philosophy; and 4) mention some of the problems with green marketing.
WHAT IS GREEN MARKETING
Unfortunately, a majority of people believe that green marketing refers solely to the promotion
or advertising of products with environmental characteristics. Terms like Phosphate Free, Recyclable,
Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often
associate with green marketing. While these terms are green marketing claims, in general green
marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and
even services. For example, around the world there are resorts that are beginning to promote
themselves as "ecotourist" facilities, i.e., facilities that "specialize" in experiencing nature or operating
in a fashion that minimizes their environmental Impact (May 1991, Ingram and Durst 1989, Troumbis
1991).
Thus green marketing incorporates a broad range of activities, including product modification,
changes to the production process, packaging changes, as well as modifying advertising. Yet defining
green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes:
Green Marketing, Environmental Marketing and Ecological Marketing. While green marketing came
into prominence in the late 1980s and early 1990s, It was first discussed much earlier. The American
Marketing Association (AMA) held the first workshop on "Ecological Marketing" in 1975. The
proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological
Marketing" (Manion and Kinnear 1976a). Since that time a number of other books on the topic have
been published [Charter 1992, Coddington 1993, Ottman 19931.
16
The AMA workshop attempted to bring together academics, practitioners, and public policy
makers to examine marketing's Impact on the natural environment. At this workshop ecological
marketing was defined as:
1) The study of the positive and negative aspects of marketing activities on pollution, energy depletion
and nonenergy resource depletion. (Hanlon and Kinnear 1976b, 11
This early definition has three key components, 1) It is a subset of the overall marketing
activity; 2) it examines both the positive and negative activities; and 3) a narrow range of
environmental issues are examined. While this definition is a useful starting point, to be comprehensive
green marketing needs to be more broadly defined. Before providing an alternative definition it should
be noted that no one definition or terminology has been universally accepted. Thus lack of consistency
is a large part of the problem, for how can an issue be evaluated if all researchers have a different
perception of what they are researching. The following definition is much broader than those of other
researchers and It encompasses all major components of other definitions. My definition as:
Green or Environmental Marketing consists of all activities designed to generate and facilitate
any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and
wants occurs, with minimal detrimental impact on the natural environment. (Polonsky 1994b, 2]
This definition incorporates much of the traditional components of the marketing definition,
that is "All activities designed to generate and facilitate any exchanges intended to satisfy human needs
or wants" [Stanton and Futrell 1987]. Therefore it ensures that the interests of the organization and all
its consumers are protected, as voluntary exchange will not take place unless both the buyer and seller
mutually benefit. The above definition also Includes the protection of the natural environment, by
attempting to minimize the detrimental impact this exchange has on the environment. This second point
is important, for human consumption by its very nature is destructive to the natural environment. (To
be accurate products making green claims should state they are "less environmentally harmful" rather
than "Environmentally Friendly.") Thus green marketing should look at minimizing environmental
harm, not necessarily eliminating it.
WHY IS GREEN MARKETING IMPORTANT
The question of why green marketing has increased in importance is quite simple and relies on
the basic definition of Economics: Economics is the study of how people use their limited resources to
try to satisfy unlimited wants. (McTaggart, Findlay and Parkin 1992, 24)
Thus mankind has limited resources on the earth, with which she/he must attempt to provide for the
worlds' unlimited wants. (There is extensive debate as to whether the earth is a resource at man's
disposal, for example, see Gore 1993.) While the question of whether these wants are reasonable or
achievable is important, this issue will not be addressed in this paper. In market societies where there is
"freedom of choice", it has generally been accepted that individuals and organizations have the nght to
attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or
alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how
marketing activities utilize these limited.
WHY ARE FIRMS USING GREEN MARKETING?

When looking through the literature there are several suggested reasons for firms increased
use of Green Marketing. Five possible reasons cited are:
1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve
its objectives [Keller 1987, Shearer 19903;
2. Organizations believe they have a moral obligation to be more socially responsible (Davis 1992,
Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990);
3. Governmental bodies are forcing firms to become more responsible (NAAG 1990);
17
4. Competitors' environmental activities pressure firms to change their environmental marketing
activities [NAAG 1-990]; and
5. Cost factors associated with waste disposal, or reductions in material usage forces firms to
modify their behavior (Azzone and Manzini 19943.
OPPORTUNITIES
It appears that all types of consumers, both Individual and industrial are becoming more
concerned and aware about the natural environment. in a 1992 study of 16 countries, more than 50%
of consumers in each country, other than Singapore, indicated they were concerned about the
environment [Ottman 19933. A 1994 study in Australia found that 84.6% of the sample believed all
individuals had a responsibility to care for the environment. A further 80% of this sample indicated that
they had modified their behavior, including their purchasing behavior, due to environmental reasons
[EPA-NSW 19941. As demands change, many firms see these changes as an opportunity to be
exploited_
Gwen these figures, it can be assumed that firms marketing goods with environmental
characteristics will have a competitive advantage over firms marketing non-environmentally
responsible alternatives. There are numerous example of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs.
McDonald's replaced its clam shell packaging with waxed paper because of increased
consumer concern relating to polystyrene production and Ozone depletion (Gifford 1991,
Hume 19911.
Tuna manufacturers modified their fishing techniques because of the increased concern over
driftnet fishing, and the resulting death of dolphins (Advertising Age 1991).
Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the
demands of firms for loss environmontally harmful products.
This is not to imply that all firms who have undertaken environmental marketing activities
actually improve their behavior. In other cases firms have jumped on the green bandwagon without
considering the accuracy of their behavior, their claims, or the effectiveness of their products. This lack
of consideration of the true "greenness" of activities may result in firms making false or misleading
green marketing claims.
SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members of the wider community and
therefore must behave in an environmentally responsible fashion. This translates Into firms that believe
they must achieve environmental objectives as well as profit related objectives. This results in
environmental issues being integrated into the firm's corporate culture. Firms in this situation can take
two perspectives; 1) they can use the fact that they a re environmentally responsible as a marketing tool;
or 2) they can become responsible without promoting this fact.
There are examples of firms adopting both strategies. Organizations like the Body Shop heavily
promote the fact that they are environmentally responsible. While this behavior is a competitive
advantage, the firm was established specifically to offer consumers environmentally responsible
alternatives to conventional cosmetic products. This philosophy is directly tied to the overall corporate
culture, rather than simply being a Competitive tool.
An example of a firm that does not promote its environmental initiatives is Coca-Cola. They
have invested large sums of money in various recycling activities, as well as having modified their
packaging to minimize its environmental impact. While being concerned about the environment, Coke
has not used this concern as a marketing tool. Thus many consumers may not realize that Coke is a very
environmentally committed organization. Another firm who is very environmentally responsible but
does not promote this fact, at least outside the organization, is Walt Disney World (WOW). WOW has
18
an extensive waste management program and infrastructure in place, yet these facilities are not
highlighted in their general tourist promotional activities (Murphy 1995).
GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to "protect" consumers and
society; this protection has significant green marketing implications. Governmental regulations relating
to environmental marketing are designed to protect consumers in several ways, 1) reduce production of
harmful goods or byproducts; 2) modify consumer and industry's use and/or consumption of harmful
goods; or 3) ensure that all types of consumers have the ability to evaluate the environmental
composition of goods.
Governments establish regulations designed to control the amount of hazardous wastes

produced by firms. Many by-products of production are controlled through the issuing of various
environmental licenses, thus modifying organizational behavior. In some cases governments try to
"induce final consumers to become more responsible. For example, some governments have introduced
voluntary curb-side recycling programs, making it easier for consumers to act responsibly. In other cases
governments Lax individuals who act in an irresponsible fashion. For example in Australia there is a
higher gas tax associated with leaded petrol.
One of the more recent publicized environmental regulations undertaken by governments has
been the establishment of guidelines designed to - control" green marketing claims [Polonsky
1994aj. These regulations include the Australian Trade Practices Commission's (TPC) "Environmental
Claims in Marketing - A Guideline (TPC 19923, the US Federal Trade Commission's (FTC) "Guides
for the Use of Environmental Marketing Claims" (FTC 1991 and 1992) and the regulations suggested
by the National Association of Attorneys-General (NAAG 19901. These regulations are all
designed to ensure consumers have the appropriate information which would enable them to
evaluate firm's environmental claims. In addition to these guidelines many States in the US
have introduced legislation to control various environmental marketing activities (Kangun and
Polonsky 1994]. In most cases these State laws are more stringent than the FTC's guidelines.
To date the majority of prosecutions of firms using misleading green marketing has occurred in
State rather than Federal courts.
Thus governmental attempts to protect consumers from false or misleading claims

should theoretically provide consumers with the ability to make more informed decisions. In
Australia where regulations have affected many companies, one unintended casualty was an
advertisement for the Federal Government's environmental labeling program "Environmental
Choice." This ad was deemed to breach the TPC's guidelines, as it implied that only products with
the logo were environmentally responsible.
COMPETITIVE PRESSURE
Another major force in the environmental marketing area has been firms desire
to maintain their competitive position. In many cases firms observe competitors promoting their
environmental behaviors and attempt to emulate this behavior. In some instances this competitive
pressure has caused an entire industry to modify and thus reduce its detrimental environmental
behavior. For example, it could be argued that Xerox's "Revive 10001* Recycled paper was introduced
a few years ago in an attempt to address the introduction of recycled photocopier paper by other
manufacturers. In another example when one tuna manufacture stopped using driftnets the others
followed suit (Advertising Age 1991].
COST OR PROFIT ISSUES

Firms may also use green marketing in an attempt to address cost or profit related issues.
Disposing of environmentally harmful by-products, such as polychlorinated biphenyl (PCB)
contaminated oil are becoming increasingly costly and in some cases difficult. Therefore firms that
19
can reduce harmful wastes may incur substantial cost savings. When attempting to minimize waste,
firms are often forced to re-examine their production processes. In these cases they often develop
more effective production processes that not only reduce waste, but reduce the need for some raw
materials. This serves as a double cost savings, since both waste and raw material are reduced.
In other cases firms attempt to find end-of-pipe solutions, Instead of minimizing waste. In
these situations firms try to find markets or uses for their waste materials, where one firm's waste
becomes another firm's input of production. One Australian example of this is a firm who produces
acidic waste water as a byproduct of production and sells it to a firm involved in neutralizing base
materials.
The last way in which cost or profit issues may affect firms' environmental marketing
activities is that new industries may be developed. This can occur in two ways: 1) a firm
develops a technology for reducing waste and sells it to other firms; or 2) a waste recycling or
removal industry develops [Yurman 19941. For example, firms that clean the oil in large
industrial condensers increase the life of those condensers, removing the need for replacing the
oil, as well as the need to dispose of the waste oil. This reduces operating costs for those owning
the condensers and generates revenue for those firms cleaning the oil.
SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of potential problems
that they must overcome. One of the main problems is that firms using green marketing
must ensure that their activities are not misleading to consumers or industry, and do not
breach any of the regulations or laws dealing with environmental marketing. For example
marketers in the US must ensure their green marketing claims can meet the following set of
criteria, in order to comply with the FTC's guidelines. Green marketing claims must;
Clearly state environmental benefits;
Explain environmental characteristics;
Explain how benefits are achieved;
Ensure comparative differences are Justified;
Only use meaningful terms and pictures.
Another problem firms face is that those who modify their products due to increased
consumer concern must contend with the fact that consumers perceptions are sometimes not correct.
Take for example the McDonald's case where it haS replaced its clam shells with plastic coated paper.
There is ongoing scientific debate which is more environmentally friendly. Some scientific evidence
suggests that when taking a cradleto-grave approach, polystyrene is less environmentally harmful. If
this is the case McDonald's bowed to consumer pressure, yet has chosen the more environmentally
harmful option.
When firms attempt to become socially responsible, they may face the risk that the
environmentally responsible action of today will be found to be harmful in the future. Take for example
the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs
(hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME
(dimethyl ether) as an aerosol propellant, which may also harm the ozone layer (Debets 1989]. Given
the limited scientific knowledge at any point in time, it may be impossible for a firm to be certain they
have made the correct environmental decision. This may explain why some firms, like Coca-Cola and
Walt Disney World, are becoming socially responsible without publicizing the point. They may be
protecting themselves from potential future negative backlash, if it is determined they made the wrong
decision in the past.
20
While governmental regulation is designed to give consumers the opportunity to make better
decisions or to motivate them to be more environmentally responsible, there is difficulty in
establishing policies that will address all environmental issues. For example, guidelines developed to
control environmental marketing address only a very narrow set of issues, i.e., the truthfulness of
environmental marketing claims [Schlossberg 19931. If governments want to modify consumer
behavior they need to establish a different set of regulations. Thus governmental attempts to protect
the environment may result in a proliferation of regulations and guidelines, with no one central
controlling body.
Reacting to competitive pressures can cause all "followers" to make the same mistake as the
"leader A costly example of this was the Mobil Corporation who followed the competition and
introduced -biodegradable" plastic garbage bags. While technically these bags were biodegradable, the
conditions under which they were disposed did not allow biodegradation to occur. Mobil was sued by
several US states for using misleading advertising claims [Lawrence 19911. Thus blindly following the
competition can have costly ramifications.
The push to reduce costs or increase profits may not force firms to address the important
issue of environmental degradation. End-of-pipe solutions may not actually reduce the waste but
rather shift it around. While this may be beneficial, it does not necessarily address the larger
environmental problem, though it may minimize its short term affects. Ultimately most waste
produced will enter the waste stream, therefore to be environmentally responsible organizations
should attempt to minimize their waste, rather than find "appropriate" uses for it.
CONCLUSION
Green marketing covers more than a firm's marketing claims. While firms must bear much of
the responsibility for environmental degradation, ultimately it is consumers who demand goods, and
thus create environmental problems. One example of this is where McDonald's is often blamed for
polluting the environment because much of their packaging finishes up as roadside waste. It must be
remembered that it is the uncaring consumer who chooses to disposes of their waste in an
inappropriate fashion. While firms can have a great impact on the natural environment, the
responsibility should not be theirs alone. In the EPA's 1994 study consumers gave the following
reasons for why they damage the environment.
It appears that consumers are not overly committed to improving their environment and may
be looking to lay too much responsibility on industry and government. Ultimately green marketing
requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through
higher priced goods, modified individual lifestyles, or even governmental intervention. Until this
occurs it will be difficult for firms alone to lead the green marketing revolution.
It must not be forgotten that the industrial buyer also has the ability to pressure suppliers to
modify their activities. Thus an environmental committed organization may not only produce goods
that have reduced their detrimental Impact on the environment, they may also be able to pressure their
suppliers to behave in a more environmentally "responsible fashion. Final consumers and industrial
buyers also have the ability to pressure organizations to integrate the environment Into their corporate
culture and thus ensure all organizations minimize the detrimental environmental impact of their
activities.
21
SME MARKETING
S.Indirani, Asst. Professor, STET school of Management, Mannargudi
What is SME Marketing

SME or Small to Medium Enterprises marketing simply means marketing strategies that
benefit small businesses. In this time of global recession, small companies are exceptionally proactive
in keeping sales up.
The online marketing arena has experienced significant growth over the past few years, while
traditional marketing has deteriorated mainly due to its higher costs. With this kind of marketing,
entrepreneurs are able to control and discover key revenue streams and make the right decisions with
advanced reporting technology.
It has been noted that advertisers are more aggressive now in terms of performance marketing with
more than half of them planning to maintain or even increase investments in email and search engine
marketing channels.
Marketing Basics for the Small Business:

The essence of marketing is to understand your customers' needs and develop a plan that surrounds
those needs. Let's face it anyone that has a business has a desire to grow their business. The most
effective way to grow and expand your business is by focusing on organic growth.
You can increase organic growth in four different ways.
They include:
Acquiring more customers
Persuading each customer to buy more products
Persuading each customer to buy more expensive products or up selling each customer
Persuading each customer to buy more profitable products
All four of these increase your revenue and profit. Let me encourage you to focus on the first which is
to acquire more customers.
How can you use marketing to acquire more customers?

Spend time researching and create a strategic marketing plan.
Guide your product development to reach out to customers you aren't currently attracting.
Price your products and services competitively.
Develop your message and materials based on solution marketing.
First Steps to Marketing a Small Business:

(i) What is Marketing?
We often hear about marketing and when we own a business we know it's something we are supposed
to do, but what is marketing? There are so many definitions that describe marketing as small business
owners understanding what it is can leave us confused. We hear about sales, advertising, public
relations and marketing.
(ii)Why Marketing is Worth the Expense

Many companies view marketing as an expense. Truth is when a business understands
the importance and the role it plays in growing a business it's clear on why it should be considered an
investment. Marketing has an affect on your sales, pricing, promotions and your advertising strategies.
22
(iii)Understanding Market Research
Market research helps you to determine how your product or service will be accepted among
different demographics. This information can help you in establishing which segment of consumers
will have an interest in your product and services and ultimately end up purchasing from you. You can
use market research to gain specific information such as determining the age group, gender, location,
and income level of potential customers that you should target using your marketing message..
(iv) Why Marketing Research is Important to Your Business

Marketing research is delving into the behavior and buying habits of a specific segment that you have
decided to target and ultimately it saves you money in by helping you avoid costly marketing mistakes.
Learn why it's important and how you can use it to be create effective marketing strategies for your
small business.
(v) Why Consumers Buy What They Buy

Our marketplace is changing, we see this in the spending habits of consumers as well as in the
economy. Consumers are looking for something more than a flashy ad or attention grabbing
commercial when considering where to spend their hard earned money. Learn why consumers buy
what they buy and how you can influence their decision.
Steps involved in the process of marketing planning? They are:

Step 1: Marketing planning
Marketing planning involves three key steps: establishing business mission, performing marketing
audit and
Core Strategy: It refers to determining how to achieve the business objectives. The process involves
three important steps:
(a)Determine target market: Target markets refer to the group of customer which is attractive to a
business to choose to serve. While doing this, a business needs to analysis its capability. Moreover,
when target customers' needs are changed, the business has to adapt its marketing mix accordingly.
(b)Identify competitors' target: It is important to determine how a business will take on its
competitors. Weak competitors are easy prey and stronger competitors may be major cause of concern
for a business.
(c)Competitive advantage: For a business to be successful, it is important to determine and achieve

some edge over its competitors. This edge or competitive advantage can be achieved by combination of
the following elements:
Better quality products or service

Anticipating and responding to customer needs faster than competitors
Establishing closer long term relationship with customers than the competitors
Lowest cost that can be translated into lowest price.
Marketing mix decisions: Marketing mix is the combination of product, price, promotion and place
(distribution). While determining marketing mix, it is important to decide what type of combination of
these elements will endow a business with competitive advantages over its competitors. It is however
not possible to outsmart a competitor in all areas.
23
STEP 3: Marketing plan implementation
Now the question is how to implement a marketing plan into a business. The way of implementation
varies according to the objective a business wants to achieve. For example, a firm may try to increase
revenue and profit, or only to maintain market share, or to increase profit at the expense of market
share. Based on these objectives, there are the following implementation strategies:
(i) Build objective: It is a good strategy for a growth market where overall sales are growing and all
players can achieve higher sales. In a mature market, sales of one player can grow only at the expense
of other. However, if a mature market offers exploitable weaknesses, build objective can be applied; or
when the company has exploitable competitive strength or extensive experience, this strategy can be
applied.
How build objective can be achieved?

(a)Merger or acquisition: Instead of engaging in a costly battle with competitors, merger or
acquisition helps a company to gain strength and increase sales, especially when the merged companies
operate in the same market.
(b)Strategic Alliance: Another way instead of merger is strategic alliance when two companies reach
some agreement which may be in terms of R&D, long term purchasing or supply agreement, licensing
agreement, joint venture, etc.
(c)Market expansion: Market expansion can be done by creating new users, new uses of products or
increasing frequency of purchase of existing customers.
(d)Winning market share: It refers, unlike market expansion, winning of competitors market share
which can be done in different ways, like: Frontal Attack (attacking the main market of the market
leader by launching a product with similar or superior marketing mix), Flanking attack (attacking
weakly guarded market segments,
Hold Objectives: It is about defending a companys current position against eminent competition.
Usually the classic situation for applying this strategy is in a mature or declining market.
(i)How hold objectives can be achieved? It can be done in two ways:

(a)Monitor competition: When there is competitive stability, everyone is playing fair getting
satisfaction from what they have. A company needs to constantly monitor whether this stability is there
or not so that it can strategize accordingly.
(b)Confront competition: It can be done in by position defense (building fortification around a

company product with competitive pricing, good quality, better branding, patent, etc. so that a
competitor cannot easily attack its market.
Niche objectives: It is pursuing a small market or even a small segment. It is better for a company
which has a small budget and strong competitors are dominating the main market. It depends of
attractiveness of the niche, capability fo the company. Small company can do better R&D with focused
efforts
Harvest objective: it is better in mature or declining market since they loss money or make a little
profit but has to use valuable resource and time for that. In harvesting only essential expenditures are
done, R&D is eliminated, products are rationalized, ad and promotion are eliminated.
24
Divest objective: A company decides to divest itself from a business or product. Loss making products
are eliminated if it is not contributing to sales of other products.
STEP 4: Marketing control:

This is the final step of the marketing planning process. At this stage, the results of the marketing
plan are evaluated so that corrective actions can be taken and objectives can be achieved effectively.
Such measures include sales, profit, cost, cash flow, etc. However, long term perspective is important
while evaluating marketing planning activities.
Conclusion:
Organisations in our era are extremely sensitive - as they must be - to demographic, political,
technological and economic developments. Environmental changes most affect strategic perspective.
With respect to the marketing mix, quality in the biscuit industry is a key factor. For example, Arnott's
uses its Sunshine brand to compete at the budget end of the market, but promotes its own brand on the
basis of quality at the upper end.
Competition with non-biscuit products such a snack food and confectionery is partly on the basis
of packaging. Even though the two companies have different specialities, the price, distribution and
promotion are very similar. It can be seen that Arnott's have a stronger market share than Nabisco due
to stronger promotion, more variety of products and brand loyalty.
An effective marketing program brings together all of the elements of the marketing mix to
achieve the organisation's marketing objectives by delivering to customers what they want and need.
Thus, the most successful companies will be those that can meet these needs most effectively
25
MARKETING INNOVATION
R.Karthika, Asst.Professor, M.A.M. B School, Trichy
ABSTRACT
In the present scenario innovation plays a vital role in the industry to sustain in the market. If
the companies fail to adopt the new concepts may be they will loss the customers or market share. To
survive in the market they have to focus on what is desirable to the users, what is viable in the market
place and what is possible with technology. Organizational generally follow external and internal
impetus as a sources of innovation. Management guru Peter Drucker 1909 has identified four internal
and three external impetuses for innovation. Internal prompts include unexpected occurrences,
incongruities, process needs, and industry or market changes.
At the present scenario authenticity, net promoter scores, buzz tracking, From segmentation to
insights, Green, Grey, Co-creation, Experimentational budgets, The return of the soap, More CGA
prevails in the market. Mr. Gerber referred to this marketing methodology as the E-myth which was
comprised of: innovation, quantification, orchestration, and documentation. The innovation has been
implemented in many companies and they are running their business successfully. They are IBM,
P&G, APPLE,Toyota Motors etc.
To conclude if youre trying to enhance your marketing program, or create one from scratch,
keep this methodology in mind: innovation, quantification, orchestration, documentation. This process
will ensure constant growth and improvement in your marketing results Michael Fleischner, March 05,
2007.
INTRODUCTION:
The term innovation derives from the Latin word innovatus, which is the noun form of
innovare "to renew or change," stemming from in-"into" + novus-"new". Although the term is broadly
used, innovation generally refers to the creation of better or more effective products, processes,
technologies, or ideas that affect markets, governments, and society. Innovation differs from invention
or renovation in that innovation generally signifies a substantial change compared to entirely new or
incremental changes.
Marketing innovations are aimed at better addressing customer needs, opening up new
markets, or newly positioning a firms product on the market, with the objective of increasing the
firms sales.
The distinguishing feature of a marketing innovation compared to other changes in a firm's

marketing instruments is the implementation of a marketing method not previously used by the firm. It
must be part of a new marketing concept or strategy that represents a significant departure from the
firms existing marketing methods. The new marketing method can either be developed by the
innovating firm or adopted from other firms or organizations. New marketing methods can be
implemented for both new and existing products.
Importance of Innovation
The definition and description of innovation, as the Literature review shown, clearly indicate
that impact of innovate thinking in the marketing activities is considerably high. Innovation and
creativity, the combination of originality, divergent thinking and risk taking, is expected element used
for creating guerrilla marketing campaigns.
The necessity of applying innovate concepts in the marketing is supported by findings of the
Primary research where 53% of the respondents stated that their companies marketing activities are
interesting, eye-catching and differ from the campaigns of competitors. Moreover, 11% of the
26
respondents describe their marketing activities as "unexpected, shocking and completely different than
what people would expect".
The interest of respondents on innovation in their Internet marketing activities is expressed by

20 out of 28 respondents who positively answered that they would like to have some unexpected and
interesting application on their website which would increase significantly the attention of the target
audience. Therefore, as the research shows, use of innovation is necessary presumption for creating any
guerrilla marketing campaign both offline and online
Innovation is the act of introducing something new or doing something in a different way.
Innovation in business differs from creativity in that the latter is generally associated with the
generation of new ideas. In contrast, innovation refers to taking those new ideas and actually
implementing them in the marketplace. Thus, creativity is simply one element of the innovation process
through which new ideas lead to new products, procedures, or services. Business scholars often
attribute company success to innovation. Because of growing international competition, innovation
became even more vital for companies toward the end of the 20th century.
Innovation usually results from trial-and-error experimentation and sometimes occurs

incidentally where researchers produce something other than what they intended. Nevertheless, because
of the growth of and accessibility to knowledge and
information through the technology and information
revolutions, researchers of the late 20th century
generally could move from ideas to innovations
much more quickly than their predecessors. A confluence
of factors contributes to innovation in the business
setting, including the research environment, market
need, company strategy, and company resources.
HISTORY OF INNOVATION IN BUSINESS

While innovation has existed as long as the species has, early innovations penetrated society
and became established more slowly. For example, printing technology, various transportation
innovations, and the use of gunpowder took centuries to reach most levels of society and become part
of everyday life, according to Basil Blackwell and Samuel Eilon, authors of The Global Challenge of
Innovation.
The penetration and acceptance of various innovations began to accelerate with the gradual
collaboration and cooperation of science and assorted crafts and industries, especially in the 19th
century. The partnership between science and industry allowed scientists to produce practical,
reproducible technologies, which businesses could reasonably afford. Because of this collaboration,
innovation grew quickly.
Despite the partnership, however, science and businesses still remained separate entities.
Researchers worked either independently or as members of companies that specialized in developing,
producing, and marketing innovations during this period. Consequently, many of these innovations
failed to make it to the market.
Companies, howeverespecially power, chemical, and communications companiesbegan
creating in-house research and development divisions early in the 20th century. In addition, they
enhanced and marketed the innovations of others, breaking down the barrier between innovator and
company. As a result, companies, not individuals, began controlling the patents to new inventions.
Furthermore, teams of company researchers, not lone inventors, became the primary innovators.
27
TRENDS IN MARKETING INNOVATION:
Authenticity:
Authenticity, honesty, realness should have been at the top of this list for the past 10 years
but it seems as if it is actually breaking through now. Too many great examples of how companies
enhanced their image and standing with either the general public or a relevant group of advocates have
emanated recently Scobleizer has probably generated billions worth of goodwill for Microsoft.
Net Promoter Scores

Sell your shares in market research agencies their extensive research methods will go the
way of the dinosaurs. Turns out, it all comes down to one question: "On a scale of 0 to 10, how likely
are you to recommend brand/product X to someone else?" As the results of this research can be directly
tied to revenue growth, instead of intangible (and not-boardroom safe) fuzzies like brand recognition,
watch the corporate world being taken by storm by NPS, following the likes of GE and Philips.
The "table-stakes" set of innovation capabilities: the ideation stage, an ability to gain insight into
customer needs and an understanding of the potential relevance of emerging technologies. At the
product development stage, an ability to engage actively with customers to prove the validity of
concepts and to assess market potential and risks, and the ability to leverage existing product platforms
into new products. At the commercialization stage, an ability to work with pilot users to roll out
products carefully but quickly, and to coordinate across the entire organization for an effective launch.
But even more important, the best performing companies develop additional capabilities that are very
specific to their chosen innovation strategies.
The most successful companies, we found, are those that focus on a particular, specifically aligned set
of common and distinct capabilities that enable them to better execute their chosen strategies.
CONCLUSION
For those companies that are struggling with their innovation efforts concludes by suggesting three key
things they should consider doing right away:
Diagnose their innovation efforts: take a step back and see where innovation efforts are strong
and weak.
Research five similar-sized firms: go completely outside of the industry and look for
successful innovators that are the same size as their organization. What are they doing
successfully that can be adopted.
Get a meeting with those that matter: begin talking about strategy and process with the
relevant people in the organization. The conversation about the important things in innovation
can start from anywhere, but ownership must finally come from the top.
28
THE IMPACT OF ADVERTISING AND PRICE PROMOTION ON BRAND EQUITY
Mr. Srinivasan.K, B.Tech, MBA, Student, School of Management Studies,
Vel Tech Dr.RR & Dr.SR Technical University, Avadi, Chennai 600 062
INTRODUCTION
Brand equity, a measure of the overall value of a brand (Keller, 1998), is a key concept in
brand management. Brand equity has been identified as a valuable source of competitive advantage for
many organizations (Aaker, 1991; Bharadwaj, Varadarajan and Fahy, 1993; Keller ,1998). Keller
(1993) conceptualizes brand equity as the differential effect of brand knowledge on consumer
response to the marketing of the brand. Furthermore, Keller (1) proposes brand knowledge as central
to the definition of brand equity and contends that high levels of brand knowledge increase the
probability of brand choice, and (2) defines brand knowledge in terms of brand awareness and image.
Keller conceptualizes brand awareness as the strength of the brand trace in memory that is reflected by
the consumers ability to identify the brand under different conditions and defines brand image as
perceptions about a brand as reflected by the brand associations held in consumer memory. The
customer-based brand equity is a set of brand-related associations held by the consumer in memory
(e.g., Keller, 1993). Under this perspective, brand equity is regarded as being largely attitudinal in
nature, composed of beliefs, affect, and other subjective experiences related to the brand (i.e., brand
attitude, brand image, etc.)
RESEARCH HYPOTHESES:
Relationship between Advertising and Brand Equity:
This research proposes the H1 hypothesis about advertising expenditures and brand equity as
below.
H1: Advertising expenditures affects brand equity
H1a: Advertising expenditures is positively related to perceived quality.
H1b: Advertising expenditures is positively related to brand loyalty.
H1c: Advertising expenditures is positively related to brand awareness.
H1d: Advertising expenditures is positively related to brand associations.
Relationship between Price Promotion and Brand Equity:

This research proposes the research hypothesis.
H2: Price promotion affects brand equity
H2a: Price promotion is negatively related to perceived quality.
H2b: Price promotion is negatively related to brand loyalty.
H2c: Price promotion is negatively related to brand awareness.
H2d: Price promotion is negatively related to brand associations.
Pretest of Product Category

This study chooses four product categories jean, fast-food restaurant, bank and KTV to be
pretest by 85 students of the department/Graduate School of Business Management of Vel Tech
Institutions, Avadi, Chennai. Table 1 shows that jean, fast-food restaurant and KTV are search
products, because both the ability, before purchase, to judge the performance of each good/service and
the ability, after use, to judge the performance of each good/service are greater than 3.0 in the five-
point scale. However, the highest score of before purchase and after purchase is Jean. It means that
respondents can judge Jeans quality well before and after purchase or use it. So Jean was chosen as
search goods in this study. While the ability to judge quality before use is less than 3.0 point and the
ability to judge quality after use is greater than 3.0, bank is certainly experience products after pretest.
Therefore, the formal questionnaire design in this study chooses jean as search products and bank as
experience products.
29
Table 1 Descriptive Statistics of Product Category
N Minimum Maximum Mean Std. Deviation
Before purchase 85 2.00 5.00 3.5059 0.81099
Jean
After use 85 3.00 5.00 4.2353 0.47926
Fast-food Before purchase 85 1.00 5.00 3.4941 0.88133
restaurant After use 85 2.00 5.00 4.1882 0.69854
Before purchase 85 1.00 5.00 2.9059 0.88133
bank
After use 85 2.00 5.00 3.6824 0.83398
Before purchase 85 1.00 5.00 3.3294 0.95604
KTV
After use 85 1.00 5.00 4.0000 0.89974
Source: This research
Data Collection and Analysis:
Survey by questionnaires was made during February, 2011 to April, 2011. Participants are students of
Vel Tech Institutions, Avadi, Chennai. Two hundred questionnaires are usable. An effective response
rate is 100.00%. The sample profile is shown as table 2.
Table 2 Sample Profile
Number of Percentage
Demographic Item
Respondents (%)
Gender Male 139 69.5
Female 61 30.5
Age Under 20 23 11.5
21-30 174 87.5
31-40 3 1.5
41-50 0 0
Over 50 0 0
Department College of science and technology 139 69.5
College of business 61 30.5
Grade Freshman 19 9.5
Sophomore 7 3.5
Junior 34 17.0
Senior 28 14.0
First year of graduate school 27 13.5
Second year of graduate school 85 42.5
Income Under5000 46 23.0
5001-15000 118 59.0
15001-25000 24 12.0
25001-35000 10 5.0
35001-45000 1 0.5
45001-55000 1 0.5
Over 55001 0 0
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Reliability and Validity Test:
Table 3 <Jean>Factor Analysis of Marketing Communications
Items Factor1 Factor2
The ad campaigns for my jean seem very expensive, compared to campaigns for
0.931
competing brands.
I think my jean brand is intensively advertised, compared to competing brands. 0.963
The advertising campaigns for my jean are seen frequently. 0.948
Price promotions for my jean are frequently offered. 0.918
I think price promotions for my jean are more frequent than for competing brands. 0.914
Price promotions for my jean are presented too many times. 0.895
Table 4 <Jean>Factor Analysis of Brand Equity

Items Factor1 Factor2 Factor3 Factor4
My jean is of high quality. 0.839
The likelihood that my jean is reliable is very high. 0.865
Compared to its competitors, I appreciate my jean brand. 0.502
I consider myself to be loyal to my jean brand. 0.690
My jean would be my first choice. 0.823
I will not buy other brands if my jean is available at the store. 0.892
I can recognize my jean among other competing brands. 0.768
I am aware of my jean brand. 0.767
I know my jean brand. 0.734
Some characteristics of my jean come to my mind quickly. 0.743
I can quickly recall the symbol or logo of my jean. 0.793
My jean has a strong image. 0.838

The scale of marketing communications included 6 items. Responses to the 6-items scales
were extracted advertising and price promotion. The of sampling fitness by KMO test indicating that
the KMO value is 0.788 which means the fitness of factor analysis reaches the medium high level. The
accumulated percentage of variance explained is equal to 87.51%, sufficient to represent the original
data. Factor loading of each item is greater than 0.5 indicating convergent validity. The details are
shown in table 5.
31
Table 5 <Bank>Factor Analysis of Marketing Communications

Items Factor1 Factor2
The ad campaigns for my bank seem very expensive, compared to campaigns for
0.915
competing banks.
I think my bank brand is intensively advertised, compared to competing banks. 0.945
The advertising campaigns for my bank are seen frequently. 0.904
Price promotions for my bank are frequently offered. 0.920
I think price promotions for my bank more frequent than for competing brands. 0.929
Price promotions for my bank are presented too many times. 0.869
Table 6 <Bank>Factor Analysis of Brand Equity

Items Factor1 Factor2 Factor3 Factor4
My bank is of high quality. 0.875
The likelihood that my bank is reliable is very high 0.796
Compared to its competitors, I appreciate my bank. 0.866
I consider myself to be loyal to my bank. 0.500
My bank would be my first choice. 0.581
I will not deal with other banks if my bank is available nearby. 0.891
I can recognize my bank among other competing banks. 0.881
I am aware of my bank. 0.922
I know my bank. 0.915
Some characteristics of my bank come to my mind quickly. 0.881
I can quickly recall the symbol or logo of my bank. 0.871
My bank has a strong image. 0.799
Table 7 <Jean> Cronbach's Z Value of Each Construct
Construct Dimension Items Cronbachs Z
Advertising 3 0.943
Marketing Communications
Price Promotion 3 0.895
perceived quality 3 0.832
brand loyalty 3 0.840
Brand Equity
brand awareness 3 0.906
brand associations 3 0.916
Cronbachs Z was measured the consistence of each item under the same construct. All scales
have greater than the suggested value of 0.7 advertising Z=0.937, price promotion Z=0.917, perceived
32
quality Z=0.866, brand loyalty Z=0.747, brand awareness Z=0.908 and brand associations Z=0.891. The
alpha value for each construct demonstrates adequate internal consistency. Table 8 shows the result of
reliabilities analysis of constructs.
Table 8 <Bank> Cronbach's Z Value of Each Construct
Construct Dimension Items Cronbachs Z
Advertising 3 0.937
Marketing Communications
Price Promotion 3 0.917
perceived quality 3 0.866
brand loyalty 3 0.747
Brand Equity
brand awareness 3 0.908
brand associations 3 0.891
Pearson Correlation Analyses:
The Pearson Correlation Analyses were employed among variables. Table 9 shows the correlation
analyses among advertising, price promotion and brand equity for jeans product. The result reveals that
there is significant positive correlation between advertising and perceived quality (r=0.350, p<0.01),
brand loyalty (r=0.231, p<0.01), brand awareness (r=0.581, p<0.01) and brand associations (r=0.491,
p<0.01). There is significant negative correlation between price promotions and brand awareness (r=-
0.229, p<0.01) and brand associations (r=-0.150, p<0.05). It means that price promotions of search
product may result in negative effect on brand equity, especially on brand awareness and brand
associations.
Table 9 <Jean> Pearson Correlation Analysis
advertisin price perceived brand brand brand
g promotion quality loyalty awareness associations
advertising 1
price promotion -0.086 1
perceived
0.350** -0.107 1
quality
brand loyalty 0.231** -0.007 0.561** 1
brand
0.581** -0.229** 0.598** 0.441** 1
awareness
brand
0.491** -0.150* 0.601** 0.525** 0.766** 1
associations
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
33
Table 10 <Bank> Pearson Correlation Analysis

advertisin price perceived brand brand brand
g promotion quality loyalty awareness associations
advertising 1
price promotion 0.419** 1
perceived
0.385** 0.337** 1
quality
brand loyalty 0.236** 0.271** 0.545** 1
brand
0.158* 0.035 0.319** 0.402** 1
awareness
brand
0.360** 0.211** 0.427** 0.504** 0.459** 1
associations
Regression Analysis:
Table 11 reveals that advertising has significant positive effect on perceived quality (\=0.343,
t>1.645), brand loyalty (\=0.232, t>1.645), brand awareness (\=0.566, t>1.645) and brand associations
(\=0.481, t>1.645). Price promotion has significant negative effect on brand awareness (\=-0.180, t<-
1.645) and brand associations (\=-0.108, t<-1.645) while the negative effect on perceived quality (\=-
0.078, t>-1.645) is not significant. In addition, price promotion has no significant effect on brand
loyalty (\=0.013, t<1.645).
Table 11 <Jean>The Results of Regression Analysis
perceived brand brand brand
Y quality loyalty awareness associations
X 0.343*** 0.232*** 0.566*** 0.481***
Advertising
t=5.138 t=3.336 t=9.972 t=7.780
-0.078 0.013 -0.180*** -0.108*
Price Promotion
t=-1.162 t=0.182 t=-3.172 t=-1.751
R Square 0.128 0.054 0.370 0.252
Adjusted R Square 0.119 0.044 0.364 0.245
F 14.499*** 5.570*** 57.920*** 33.227***
***P value<0.01; **P value<0.05; *P value<0.1
Table12 reveals that advertising has significant positive effect on perceived quality (\=0.296, t>1.645),
brand loyalty (\=0.149, t>1.645), brand awareness (\=0.174, t>1.645) and brand associations
(\=0.329 t>1.645). Price promotion has significant positive effect on perceived quality (\=0.231),
brand loyalty (\=0.209). Price promotion has no significant effect on brand awareness (\=-0.038) and
brand associations (\=0.073). The correlation analyses illustrates that there is a significant relationship
between advertising expenditures and price promotion. To avoid the impact of collinearity among
independent variables, this study adopts collinearity diagnostics. The result demonstrates that VIF
(Variance Inflation Factor) is less than 10. That is, the level of the collinearity does not significantly
affect the estimation of the regression model (Huberty, 1989).
34
Table 12 <Bank>The Results of Regression Analysis
Y perceived brand brand brand
X quality loyalty awareness associations
0.296*** 0.149** 0.174** 0.329***
Advertising
t=4.180 t=1.991 t=2.244 t=4.503
0.213*** 0.209*** -0.038 0.073
Price Promotion
t=3.011 t=2.791 t=-0.488 t=1.002
R Square 0.186 0.092 0.026 0.134
Adjusted R Square 0.178 0.083 0.016 0.125
F 22.491*** 9.951*** 2.642* 15.203***
***P value<0.01; **P value<0.05; *P value<0.1
Source This study
This study have tried to extend brand equity by using constructs, such as brand loyalty, brand
awareness, perceived quality and brand associations. Such a specification can be conceptually
problematic because the same construct then appears to play multiple roles. For instance, brand loyalty
has been regarded as both a dimension and an outcome of brand equity (Morgan, 2000). Therefore, this
study further examines the relationship among brand loyalty, brand awareness, perceived quality, and
brand associations by treating brand loyalty as an outcome variable. Table 13 reveals that, for jean,
perceived quality has significant positive effect on brand loyalty (\=0.392, t>1.645) and brand
associations has significant positive effect on brand loyalty (\=0.317, t>1.645). In addition, brand
awareness has no significant effect on brand loyalty (\=-0.037, t>-1.645). For bank, perceived quality,
brand awareness and brand associations all have significant positive effect on brand loyalty
(\=0.380 t>1.645), (\=0.158, t>1.645), (\=0.269, t>1.645).
Table 13 <Jean>The Results of Regression Analysis
Brand loyalty
Jean Bank
0.392*** 0.380***
Perceived quality
t=5.325 t=6.168
-0.037 0.158**
Brand awareness
t=-0.401 t=2.514
0.317*** 0.269***
Brand associations
t=3.461 t=4.091
R Square 0.370 0.406
Adjusted R Square 0.361 0.397
F 38.441*** 44.657***
CONCLUSION
This research investigates advertising across search and experience product categories. Across
both categories, the brand with the higher advertising budget yielded substantially higher levels of
brand equity. This study notes that the firms advertising contributes to brand equity and increases
loyalty. Perceived advertising spending showed a favorable causal relationship for three of the four
dimensions of brand equity. The higher the spending on advertising for the brand, the better the quality
of the product as perceived by the consumer, the higher the level of brand awareness and the more
associations linked to the product, forming its brand loyalty. That is, effective advertising activities
enable the formations of brand awareness and a positive perceived quality, brand loyalty and brand
associations. To summarize, advertising has a positive effect on brand equity. Hence, hypothesis H1a,
H1b, H1c and H1d are supported. The research question that concerns this study is whether price
35
promotions can contribute to building brand equity. Price promotions have a negative effect on brand
equity in the long term. Price promotions as incentives to increase sales have been shown to have a
negative effect on brand equity. Although they can cause a short-term benefit to the consumer, from a
strategic perspective they showed negative effects. These effects can affect the perceived quality of the
product adversely, since benefits gained through price promotion are not enduring, and do not transmit
the security or the confidence that a brand should inspire with regard to its expected utility. However,
adopting a consumer-based brand knowledge perspective of brand equity, this study shows that price
promotions of bank are useful to create brand equity because of their positive effect on perceived
quality, brand loyalty and brand associations. Nevertheless, the statistics of the search product proves
that price promotion has significant negative impact on brand awareness and brand association. Hence,
H2 is partially supported.
This paper seeks to systematically examine the possible drivers of differences across product
categories and the implications of our preliminary findings. The result proves that the product category
does have moderate effect in between price promotion and brand equity. The result shows that product
categories moderated the relationship between advertising, price promotion and brand equity. The
influence of advertising and price promotion on brand equity is different from search goods/services
and non-search (experience and credence) goods/services. Compare to non-search goods/services,
search goods/services is positively more effective in advertising on brand equity. The impact direction
and dimension of price promotion on brand equity in various product categories are different. In search
products (jean), it has significant negative impact on brand awareness and brand association. In non-
search products (bank), it has significant positive impact on perceived quality and brand loyalty. The
product category exerts a moderator effect on the relationship between brand equity and advertising or
price promotion. Hypotheses H3 and H4 are supported.
References:
Aaker, D. A. (1991) Managing Brand Equity. Capitalizing on the Value of Brand Name, The
Free Press, New York, NY.
Aaker, D. A. and A lvarez del Blanco, R. M. (1995) Estatura de la marca: Medir el valor
por productos y mercados, Harvard-Deusto Business Review, No. 69, pp. 7487.
Aaker, D. A. and Jacobson, R. (1994) The financial information content of perceived quality
Journal of Marketing Research, Vol. XXXI, May, pp. 191201.
36
LUXURY MARKETING
P.Rajkumar, V.Meera Vel Tech Ranga Sanku College,
ABSTRACT:
When using luxury brands consumers make a subtle claim that they are special, different and
at the very forefront of social trends. Therefore, creating a fit between the social trends and keeping up
with them is one of the critical strategic issues for all luxury brands. However, with mass-market
brands gradually upgrading their appearance, strategic response and approach to marketing their
products, many luxury brands are finding it hard to stay ahead of the peck.
In this scenario, many luxury brands have decided to move beyond their niche and diversify
very quickly into other market spaces which the consumer may not associate with the specific luxury
brand. The idea of brand extension and at times irrelevant diversification (i.e. moving away from one
product category to another one) is particularly delicate issue for luxury brands. This is mainly because
of the strong brand origin and brand image associations luxury brands have in consumer minds.
While there are some brands who manage to extend their portfolio without any major issues,
many luxury brands find it a massive struggle and therefore should think about such extensions
carefully. For example, Pradas move from shoes to handbags and then into ready-to-wear market
worked every time. Same was the case with Gucci. However, it took many years for the first Bulgari
watch to become a success. In case of smaller and boutique luxury brands, due to financial and
marketing resource limitations, the issue of brand extension looks very lucrative but can become a
bottleneck very quickly. For example, in 2005, Mattel decided to create Barbie-themed clothing and
accessories and involved fashion designers such as Tarina Tarantino and Anna Sui to interpret Barbies
wardrobe for grownups. However, this extension was identified as one of the worst extension for the
year and so its effects on the involved designers may be felt in long-term. Another example of this is
Audi in US market. Audi still struggles to crack the US market as consumers remember those sudden
unintended acceleration issues and a series of product recalls associated with it nearly 3 decades ago.
Marketing luxury brands is significantly trickier than regularly purchased brands. In this
regards, many luxury brands from Europe seem to be stepping up a new kind of luxury marketing
activity exhibitions in prominent museums. For example, Inspiration Dior exhibition at the Pushkin
Museum, Moscow; Culture Chanel at the Museum of Contemporary Art Shanghai; and Louis
Vuitton Voyages exhibition in the National Museum of China. This exercise bags a question as to
can this create a win-win situation for luxury brands and museums? In the following paragraphs, I shall
share my views on marketing luxury brands through exhibitions.
A win-win situation for marketing luxury brands and museums

Many luxury brands continuously associate themselves with the local culture, local flavors
and local identity in almost all their communications. In my earlier article on luxury marketing and
brand origin effects, I specifically highlighted how brand origin connection is used by luxury brand
marketers. Exhibitions provide another marketing opportunity to luxury brands to expose and engage
those consumers who are less aware or feel psychologically distant from these brands. Many
consumers still associate luxury brands with negative value associations such as snobbism or
conspicuousness rather than the uniqueness or high quality. The negative association of snobbism or
conspicuousness may not bode well for positioning purposes in present environment. Exhibitions,
especially in world-renowned museums provides luxury brand an added benefit of going beyond those
negative value associations and associate positively.
On the other hand, museums increasingly look for exposing their visitors to world cultures and
sub-cultures. For example, Victoria and Albert museum, a prominent art and heritage museum in
London, identifies its purpose as to enable everyone to enjoy its collections and explore the cultures
that created them; and to inspire those who shape contemporary design.
37
In this regard, luxury brands which associate themselves with a specific culture tone represent
both culture and contemporary design objectives. Therefore, it creates a win-win situation for both
luxury brands and museums. The brands gain stronger cultural tone, wider exposure (as masses may
sometimes find some of these brands snobbish) and added prestige of being classic. Many consumers
see museums as the most accurate snapshot of a specific culture or a specific event. In a way, many
consumers take the museums view as the reality. In this regards, marketing the luxury brand via a
museum gains a strong positive association due to the exhibition. The museum on the other hand may
get more visitors who may be curious in looking at a certain outfit (e.g. Kate Middletons wedding
dress is already being identified as a museum outfit). Thus, both brands and museums win.
The increasing inclination from museums to host brand-focused exhibitions can be explained from a
socio-cultural perspective also.
Media exposure: Luxury is now mainstream: The media-cultural phenomenon is however, not
restricted to the pages of glossy magazines. Mainstream media are taking a greater interest in luxury
brands, fashion trends and consumer lifestyles. Weekend supplements in national newspapers devote
pages to fashion features and product reviews. Increased product knowledge and brand awareness are
translating into greater consumer confidence an important catalyst for luxury consumption in a fast-
emerging market.
Luxury accessibility: The world at your doorstep: Luxury brands are now following the Indian
consumer, expanding their sales operations not only in Delhi and Mumbai, but to smaller cities or
metro cities such as Pune and Hyderabad. Luxury boutiques which were traditionally confined to the
secure but often inaccessible surroundings of exclusive hotels have been thrown open to the masses
thanks to the shopping mall boom.
Market regulation: Although high import duties on luxury goods continue to prevail, Indias policy of
liberalisation and deregulation has improved its image as an attractive destination for foreign
investment.
The changing face of the Indian luxury consumer: The luxury market has traditionally been
segmented according to two very separate and distinct customer groups namely the affluent and the
non-affluent. The transition towards a consumer society has changed the profile of the luxury
consumer. Luxury is no longer reserved for the English-speaking elite. Priyanka,a BPO employee,
loves shopping, worships brands and is typical of a new generation of luxury consumers the because
Im worth it generation.
Todays luxury shopper could be a broker, an entrepreneur, an IT specialist or a student.

Maximizing the Indian luxury rupee
(a) Beyond exclusivity
(b) Beyond status
(c) Beyond westernization
(d) Burberry meets Bolly wood
CONCLUSION:
The starting point for identifying successful luxury brand strategies in India has been
established by identifying certain salient aspects of luxury brands that remain constant as well as
identifying the stage of mindset of the Indian consumer towards these brands.
The focus is now towards how soon luxury brands will enter the market to gain a first mover
advantage, which is of significant importance in India. Apart from how soon, we primarily focus on
how will luxury brands cater to the mainly aspirational needs of the Indian consumer.
38
A word of caution that goes for luxury marketers, irrespective of their brands and
geographical presence The luxury consumer is always looking for newer ways to satisfy his
continuously changing needs. Hence, the need to keep a close tab through insightful research is of
prime importance.
As far as India is concerned, given the rapidly accelerating affluence of the masses, the
scenario is set to witness a boom. The ones who will be riding the wave will be the ones whove kept
their ears open to each and every word of their each and every customer. After all, in the luxury
business, no marketer can afford the luxury of treating its consumers as a loosely bunched segment.
39
LATEST TRENDS IN LUXURY AND LIFESTYLE RETAIL IN INDIA A
MULTIFACETED MARKET
N.Ramkumar, Assistant professor/MBA, Selvam college of Technology, Namakkal
Abstract:
Retailing, one of the largest sectors in the global economy, is going through a transition phase
in India. Over the last few years, organized retailing in India is spreading and making its existence felt
in different parts of the country. In organized retailing, one segment that has swiftly come into focus is
luxury and lifestyle retail. Indias escalation as an economic power to reckon with, has forced the
global companies to view it as one of the key markets from where future growth will emerge. India is
home to some of the richest men in the world, with the fastest growing high net worth individuals in
the Asia-Pacific region living here.
The Indian luxury retail market is the beacon of the future, with a number of international
brands are vying to design, develop and deliver the high-end goods and services to India consumers
want. To do so, they are being forced to build their distribution and to spur consumer interest in
products that aren't familiar to many Indian shoppers. The paper analyses the developments in this
multifaceted luxury and lifestyle retailing in India and focuses on prospects and challenges for luxury
retailers in India.
Introduction
The Indian retail market, the fifth largest retail destination globally, has been ranked as the
most attractive emerging market for investment in the retail sector by AT Kearney's latest annual
Global Retail Development Index (GRDI), in 2009. According to a study conducted by the Indian
Council for Research on International Economic Relations (ICRIER), the retail sector is expected to
contribute to 22 per cent of India's GDP by 2010 (Financial express report,2010). At present, the retail
industry in India is estimated a US$ 400 billion industry. With rising consumer demand and greater
disposable income, it is projected to grow to US$ 700 billion by 2010 with an expected annual growth
rate of 30 percent, according to a report by global consultancy Northbridge Capital (Indian Express
report, 2010). Further, the retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3
trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent (CRISIL report,2009). In
absolute terms, this figure is very commendable but the actual contribution to the GDP comes only in
the form of organized retail. Organized retail segment grew at the rate of 42.4 % in 2007 and is
expected to maintain a much faster growth rate in next three years (Images F&R research, 2009). As of
now, the organized part accounts for around 6.5% of the Indian retail market. Though, it is expected to
maintain a faster growth rate in the coming years with an estimation of touching 13% by the end of
2010.
Over the last few years Indian retail has witnessed rapid transformation in many areas of the
business by setting scalable and profitable retail models across categories. Indian consumers are rapidly
evolving and accepting modern retail formats. New and indigenized formats such as departmental
stores, hypermarkets, supermarkets, specialty and convenience stores, and malls, multiplexes and fun
zones are fast dotting the retail landscape.
The Organized Retail share has been gaining strength owing to the robust economy that has
given more disposable income in the hand of the consumer. This has led to increased demand of
products/services and a better shopping environment. Over the long term (5 years), it is expected to
grow at a CAGR close to 19 percent from Rs 852 billion in 2007-08 to Rs 2024 billion in 2012-13 as
per CRISIL research (2009). The organized retail penetration as a result is expected to move upwards
from 5.5 percent in 2007-08 to 7.3 percent in 2012-13.Exhibit 1 based on Images F&R research (2009)
provides a glimpse of organized retail to total market for different retail segment for the period 2004-
2007. It can be observed from the exhibit that organized retail has made its entry into all type of
segments.
40
Share of organized retail to total market

The degree of growth for any sector in a particular country depend lot on the government
policies. These policies are very dynamic in nature and hence the changes in the investments and trends
for a sector. The luxury retailing has been also affected by certain changes in the FDI in retail sector.
Till end of 2005, no FDI was allowed in Indian retail market. Hence, number of international luxury
brands were only limited to 8. These brands were present only through franchising route. Whereas, as
government announced 51% FDI in single-brand format, the number of luxury brands increased to 25
by year 2008. However, 100 percent FDI is allowed in whole cash and carry (C&C) operations but that
is not a model which luxury retailers will be able to leverage to attract its target customers. Despite
foreign direct investment restrictions, companies such as Versace, Oakley and Nike Golf are increasing
area and product
assortments to draw
consumer interest in what
they consider one of the
biggest markets in Asia.
Growth of luxury market

in India
Socio-Demographics
The first classification of customers can be done based on the Income-group and can be clubbed into
following three categories:
1. Luxury ready These are people whose annual income is over USD 100k. They are the present and
primary consumers of luxury goods/services. Further, they are already exposed to the world-class
living and thus for them luxury is a necessity rather than aspiration.
2. Future potential These are people whose annual income will be between USD 50K 100K. They
are the one who have just got exposed to luxury product/services. Thus, their current focus lays on
acquiring of luxury assets & products. They are ready to splurge on the brand of aspirations, though not
very frequently. For them, the luxury is still to flaunt and not a necessity.
3. Others As obvious, people with income below USD 50K are clubbed in this category. As of now,
they are no way going to spend on luxurious items but certainly they are the one who works really hard
to move upwards in the ladder. Hence, it is advisable for all luxurious products/services having a long
term plan for India to ensure the brand communication reaches to them.
All the three categories of consumers are likely to grow in the near future in India.
Some of the challenges inhibiting the growth of luxury retail in India would be:
Rentals costs have gone up dramatically and now match those in Singapore or even London although
sales for luxury goods are lower because India is still a developing market. This has put luxury brands
in a spot, slowing expansion plans and, in some cases, forcing a reshuffle in franchise partners. In
addition, luxury stores finding it difficult to break even at the current sales density and rent. Brands are
now pushing back break-even points to around four years from two years as they had planned. Building
scale is still a challenge as there are a few select cities with potentials for luxury retail.
There is lack of high quality luxury retail environment, with its presence restricted to select
hotels which leads to low footfalls. There are no modernized and dedicated luxury retail areas in
protected areas like airports. There is high cost of setting up luxury stores due to high rentals on
certain prominent high streets, besides this some of the high streets like Connaught Place (Delhi) are
41
cluttered and crowded, with a hot and humid climate. In addition, the high streets are unsuitable due to
the absence of exclusive ambience demanded for luxury retail. Although, this situation is somewhat
ease after opening of Indias first two luxury malls viz. the United Breweries Ltds UB City mall in
Bangalore and DLF Ltds Emporio mall in New Delhi.
CONCLUSION
Luxury retail is growing at a frantic pace in India, but still there are a sizeable number of rich
Indians not known to luxury, leaving lots of room for those trying to walk in the fray. The Indian
luxury market is a story waiting to be told, as all segments of this market viz. Luxury product, services
and assets are growing rapidly and can potentially triple in size by 2010. Indian luxury market will be
very crucial to the global luxury retailers in near future. However, luxury retail players should keep in
mind certain considerations before they make their foray into the Indian Luxury retail sector.
The starting point for identifying successful Luxury brand strategies in India has been
established by identifying certain salient aspects of luxury brands that remain constant as well as
identifying the stage of mindset of the Indian consumer towards these brands. Going by the latest wheel
in the luxury retail sector, India is debonair and is one of the fastest growing markets after the Gulf.
With the inexorable pursuit for luxury, the affluent class with tremendous purchasing power are on the
fast lane endorsing leading luxury brands which have all chosen India as the happening luxury retail
destination.
42
A STUDY ON RURAL MARKETING STRATEGY FROM COCO- COLA
V.Uma Maheshwari, Kurinji College of Engineering & Technology, Manapparai.
INTRODUCTION
Nowadays in rural area the consuming of soft drink is increased due to the spreading of
modern culture and changes in income status, so the researcher take special care on the study about
the rural marketing regarding the adaptation of the new product. The rural marketing strategy and
adaptation of the new product (Nimbu fresh) from coca cola in rural market with special reference to
Tiruchirappalli region. This study reveals the impact of introduction of new products in rural
marketing with respective to beverage.
The rural marketing strategy of Coca Cola is based on three A's - Availability, Affordability and
Acceptability.
'A' - Availability emphasized on the availability of the product to the customer

'A' - Affordability focused on product pricing
'A'- Acceptability focused on convincing the customer to buy the product.
Availability Once Coca Cola India entered the rural market; it focused on strengthening its
distribution network there. It realized that the centralized distribution system used by the company in
the urban areas would not be suitable for rural areas.
The company instead opted for a hub and spoke distribution system. Under the hub and
spoke distribution system, stock was transported from the bottling plants to hubs and then from hubs,
the stock was transported to spokes which were situated in small towns. These spokes fed the retailers
catering to the demand in rural areas.
Affordability
A survey conducted by Coca Cola India in 2001 revealed that 300 ml bottles were not popular
with rural and semi-urban residents where two persons often shared a 300 ml bottle. It was also found
that the price of Rs10/- per bottle was considered too high by rural consumers
Acceptability
The initiatives of Coca Cola India in distribution and pricing were supported by extensive
marketing in the mass media as well as through outdoor advertising. The company put up hoardings
in villages and painted the name Coca Cola on the compounds of the residences in the villages.
To reach out to rural market, Coke started out by drawing up a hit list of high potential villages from
various areas. Here the researcher takes ten villages from the list of villages from Tiruchirappalli
districts for his study.
OBJECTIVES OF THE STUDY

To find out the Marketing strategy and adaptation of new product from coca cola in
rural market with special reference to Tiruchirappalli
To study the influencing factors initiate to buy a new product in rural marketing.
To study on present promotional strategy of Coca Cola in rural markets
43
DATA ANALYSIS AND INTERPRETATION
Simple percentage analysis
Classification of respondents based on Gender
Gender Number of Percentage of
respondents respondents
Male 70 70
Female 30 30
Total 100 100
Inference:
Respondents were classified based on Gender status. Seventy percent of the respondents belongs to
category of male, and the remaining 30% of the respondents belongs to category of female
Classification of respondents based on age
Age Number of Percentage of

10 - 20 26 26
20 - 30 46 46
30 - 40 14 14
40 - 50 10 10
50 - 60 4 4
Above 60 0 0
. Total 100 100
Inference:
Respondents were classified based on age. Twenty six percent of the respondents belongs to category
of 10-20 years, 46% of the respondents belongs to category of 20-30 years, 14% of the respondents
belongs to the category of 30-40 years, 10% of the respondents belongs to the category of 40-50 years,
4% of the respondents belongs to the category of 50-60 years and None of them are belongs to category
of above 60 years.
Classification of respondents based on their rating to the Soft drinks
Product Number of respondents Percentage of
respondents
Coke 10 10
Fanta 17 17
Sprite 8 8
Maaza 16 16
Thumsup 7 7
Limca 6 6
Kinly water 5 5
Kinley Soda 6 6
MM pulpy orange 8 8
MM Nimbu fresh 17 17
Total 100 100
Inference:
The respondents were classified based on their rating to the soft drink - First. Ten percent of
the respondents are selecting the Coke. 17% of the respondents are selecting the Fanta. 8% of the
respondents are selecting the Sprite. 16% of the respondents are selecting the Maaza, 7% of the
respondents are selecting the Thumsup, 6% of the respondents are selecting the Limca, 5% of the
respondents are selecting the Kinley water, 6% of the respondents are selecting the Kinley soda, 8% of
the respondents are selecting the MM Pulpy orange, remaining 17% of the respondents are selecting the
MM Nimbu fresh
44
Classification of respondents based on their opinion towards the price which influence their
buying behavior
Opinion Number of Percentage of
Highly Satisfied 15 15
Satisfied 35 35
Neutral 45 45
Dissatisfied 3 3
Highly Dissatisfied 2 2
Total 100 100

Satisfied 35 35
Neutral 45 45
Dissatisfied 2 2
Total 100 100
Inference:
The respondents were classified based on their opinion towards the price which influences
their buying behavior. Fifteen percent of the respondents are expressed their opinion as highly satisfied.
35% of the respondents are expressed their opinion as satisfied, 45% of the respondents are expressed
their opinion as neutral, 3% of the respondents are expressed their opinion as dissatisfied, remaining
2% of the respondents are expressed their opinion as highly dissatisfied.
Classification of respondents based on their opinion towards the quality which influence their
buying behavior
Inference:
The respondents were classified based on their opinion towards the quality which influences
their buying behavior. Twenty percent of the respondents are expressed their opinion as highly
satisfied. 45% of the respondents are expressed their opinion as satisfied, 30% of the respondents are
expressed their opinion as neutral, 2% of the respondents are expressed their opinion as dissatisfied,
remaining 3% of the respondents are expressed their opinion as highly dissatisfied.
Classification of respondents based on their opinion towards the flavors which influence their
buying behavior
Satisfied 40 40
Neutral 30 30
Dissatisfied 4 4
Total 100 10
45
Inference:
The respondents were classified based on their opinion towards the flavors which influence their
buying behavior. Twenty percent of the respondents are expressed their opinion as highly satisfied.
40% of the respondents are expressed their opinion as satisfied, 30% of the respondents are expressed
their opinion as neutral, 4% of the respondents are expressed their opinion as dissatisfied, remaining
6% of the respondents are expressed their opinion as highly dissatisfied.
CONCLUSION
The rural market in India is fascinating and challenging in spite of all the difficulties existing.
The potential is enormous. Even though, these markets have weaknesses they also have tremendous
opportunities which should be availed by the marketers. It is well known that Markets are created and
not born. The market so created should be tapped effectively.
The rural marketing strategy of Coca Cola is based on three A's - Availability, Affordability
and Acceptability so the special care be take about pricing, promoting, distributing in rural areas
The product and service is leading to exchange rural market which satisfies consumer demand and also
achieves organizational objectives
46
Shanmukavadivoo S.R.M Research Scholar (M.Phil), Karpagam University, Coimbatore.
Dr. N. Shani, Director, Akshaya Institute Of Management Studies, Coimbatore
ABSTRACT:
(CRM) refers to the methodologies and tools that help businesses manage customer
relationships in an organized way.CRM processes that help identify and target their best customers,
generate quality sales leads, and plan and implement marketing campaigns with clear goals and
objectives. CRM processes that help form individualized relationships with customers (to improve
customer satisfaction) and provide the highest level of customer service to the most profitable
customers;-CRM processes that provide employees with the information they need to know their
customers' wants and needs, and build relationships between the company and its customers. Customer
relationship management tools include software and browser-based applications that collect and
organize information about customers. CRM is an information industry term for methodologies,
software and usually Internet capabilities that help an enterprise manage customer relationships in an
organized way.CRM is the process of managing all aspects of interaction a company has with its
customers, including prospecting, sales and service. CRM applications attempt to provide insight into
and improve the company/customer relationship by combining all these views of customer interaction
into one picture. CRM is an integrated approach to identifying, acquiring and retaining customers. By
enabling organizations to manage and coordinate customer interactions across multiple channels,
departments, lines of business and geographies, CRM helps organizations maximize the value of every
customer interaction and drive superior corporate performance. CRM is an integrated information
system that is used to plan, schedule and control the pre-sales and post-sales activities in an
organization. CRM embraces all aspects of dealing with prospects and customers, including the call
centre, sales-force, marketing, technical support and field service. The primary goal of CRM is to
improve long-term growth and profitability through a better understanding of customer behavior. CRM
aims to provide more effective feedback and improved integration to better gauge the return on
investment (ROI) in these areas. organizing around customer segments, fostering behavior that satisfies
customers and implementing customer centric processes.
INTRODUCTION:
CRM, Customer Relationship Management is a business strategy that enables organizations to
get closer with their customers, to better serve their needs, improve customer service, enhance
customer satisfaction and thereby maximize customer loyalty and retention. The present business
scenario assigns great emphasis on managing business customers. Organizations are quickly
recognizing that in order to survive competition it is important to grab customer attention with unique
brand identity and superior service levels. Businesses which initially focused on finance / sales /
marketing management are now shifting their priority towards customer relationship management.
CRM solutions are flooding the market with easy-to-use tools to manage business customers.
ORIGIN:
CRM originated in early 1970s when the business units had a manifestation that it would be
advisable to become customer emphatic rather that product emphatic. Birth of CRM was because of
this heedful perceptiveness. The famous writer and management consultant Peter Drucker wrote; The
true business of every company is to make and keep customers. Traditionally every transaction was on
paper and dependent on goodwill which created hindrance in clutching customers. People used to work
hard in entertaining customers by presenting new products with astonishing services; they were ready
to work overtime for grasping more and more customers for increasing business. This too resulted in
customer satisfaction and loyalty up to some extent, but at the end of the day there was no such
bonding or relation between the two to carry on with future business smoothly.
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COMPONENTS:
CRM consists of three components:
Customer,
Relationship, and
Management
CRM tries to achieve a single integrated view of customers and a customer centric
Approach
Customer: The customer is the only source of the companys present profit and future growth.
However, a good customer, who provides more profit with less resource, is always scarce because
customers are knowledgeable and the competition is fierce. Sometimes it is difficult to distinguish who
is the real customer because the buying decision is frequently a collaborative activity among
participants of the decision-making process Information technologies can provide the abilities to
distinguish and manage customers. CRM can be thought of as a marketing approach that is based on
customer information
Relationship: The relationship between a company and its customers involves continuous bi-
directional communication and interaction. The relationship can be short-term or long-term, continuous
or discrete, and repeating or one-time. Relationship can be attitudinal or behavioral. Even though
customers have a positive attitude towards the company and its products, their buying behavior is
highly situational. For example, the buying pattern for airline tickets depends on whether a person buys
the ticket for their family vacation or a business trip. CRM involves managing this relationship so it is
profitable and mutually beneficial.
Management: CRM is not an activity only within a marketing department. Rather it involves
continuous corporate change in culture and processes. The customer information collected is
transformed into corporate knowledge that leads to activities that take advantage of the information and
of market opportunities. CRM required a comprehensive change in the organization and its people.
CRM & MARKETING: CRM leverages and amplifies customer base of an organization through
efficacious and efficient marketing. In fact CRM has brought up new dimensions in the field of
marketing by significantly improving marketing functioning and execution. Intuitive CRM associated
marketing strategies like direct marketing, web marketing, e-mail marketing etc. have been matured
during the recent past. These marketing strategies are more promising as compared to the traditional
ways on marketing as they help delivering higher-up performance and walloping business. They also
help meliorating response rates in marketing campaigns, cut cost on promotions due to low asset values
and provide higher scrutiny on organizational investments.
The various aspects of CRM oriented marketing are discussed below.

1. Web Marketing- With the growing popularity of web, customers are tending towards web
marketing or web shopping. This helps both customers and suppliers to transact in a real time
environment irrespective of their locations. Some of the major advantages of Web Marketing are listed
below:
It is relatively very inexpensive as it reduces the cost for physically reaching to the target
customers for interaction.
Suppliers can reach to more number of customers in lesser amount of time.
The online marketing campaigns can be easily tracked, traced, calculated and tested.
The selection process of any product or brand is simplified due to proven online research and
analysis techniques.
Online marketing campaigns are more promotional as compared to manual campaigns.
2. Email Marketing- Email marketing has turned out to be more efficacious and inexpensive as
compared to mail or phone based marketing strategies. Email marketing is direct marketing which is
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data driven and leads to more accurate customer response and effective fulfillment of customer needs.
More attractive features include newsletters, sending of e coupons, e Cards, provision of saving events
into calendars etc.
3. Analyzing customers buying behavior online- A CRM system provides a platform to analyze
the customers buying behavior online. This interactive strategy provides great accuracy with high speed
which includes profiling services furnishing elaborated bits of information regarding customers
purchasing habits or behavior. Individualized analysis of this behavior also helps to identify to which
product or brand the customers are more tended. For example an online selling website www.xyz.com
can analyze the customers buying behavior by installing an in-house service with the help of a full-
fledged CRM that checks what all products are being purchased by a particular customer and under
which specific group they fall. This is achieved by personalized analyzing the buying history of
customers in the past which predicts the future business with those customers also. This accomplishes
to build a long-term relationship with customers by properly canvassing customer needs and resulting
in customer satisfaction. Analyzing this particular buying behavior of customers online also helps to fix
or change of marketing techniques or strategies to mould the system according to the future
perspectives.
COLLABORATIVE CRM:
Collaborative CRM deals with synchronization and integration of customer interaction and
channels of communications like phone, email, fax, web etc. with the intent of referencing the
customers a consistent and systematic way. The idea is not only enhancing the interactions but also to
increase and improve customer retention and liberty.
Collaborative CRM entangles various departments of organization like sales, marketing,

finance and service and shares the customer information among them to highlight better understanding
of customers. For example, the information of preferred products could be shared with marketing
department so that analysis can be performed in this aspect to provide preferred products to customers.
The information regarding varied cost or price of a particular product in market defined by customers
can be delivered to finance department so that strategies could be created to match the product cost
with similar products in market and after analysis bring an affordable and efficient product in market.
Department to improve or install that particular service in-house. All this is done efficaciously within
the range of channels so that the process automates the needs and minimal time is required for fulfilling
these needs.
CONCLUSION:
The present is an era of company loyalty to the customer in order to obtain customer loyalty to
the company. Consumers are more knowledgeable than ever before and, because the customer is more
knowledgeable, companies must be faster, more agile, and more creative than a few years ago.
49
GREEN MARKETING A PERSPECTIVE
Dr. R. Amutha Associate Professor, Justice Basheer Ahmed Sayeed College for Women
(Autonomous), Chennai
Abstract
Green Marketing is marketing of products and services, which have essentially low impact on
the environment. This has become a new trend with more and more companies opting for making
products, which are environment friendly. Green marketing is extremely important because of
successfully and widely implemented, the unlimited human wants can be met with comparatively
limited resources. Companies take to eco-marketing as an opportunity to achieve various alternative
objectives, i.e., other than those that are organizational, which includes, opportunities provided by
Green Marketing social responsibility, pressure from the Government, competitive pressure, cost
reduction and profit issues. Just as we have 4 Ps product, price, place and promotion in traditional
marketing, we have 4 Ps in green marketing too, but they are a bit different by focusing on three
additional Ps, namely people, planet and profits. It may be concluded, that although the government
and many private companies have been making an effort to bring about a green mindset among the
people and promote green products, a lot still need to be done to make green products truly viable and
workable in India.
Introduction
There is a growing awareness among the consumers all over the world regarding protection of
the environment in which they live. People do want to bequeath a clean earth to their offspring. Various
studies by environmentalists indicate that people are concerned about the environment and are
changing their behaviour pattern so as to be less hostile towards it. Now, we see that most of the
consumers, both individual and industrial, are becoming more concerned about environment, friendly
products. Most of them feel that environment friendly products are safe to use. As a result, green
marketing has emerged, which aims at marketing sustainable and socially responsible products and
services. Now is the era of recyclable, non-toxic and environment friendly goods. This has become
the new mantra for marketers to satisfy the needs of consumers and earn better profits. Some of the
terms like Green Marketing, Ecological Marketing and Environmental Marketing have cropped
up in the marketing literature in recent times. These three terms are used synonymously in the
marketing literature.
1. Objectives
The principle objectives of this article are
To understand the concept of Green Marketing.
To examine the reason for the growth of Green Marketing.
To discuss the Green Marketing mix.
To highlight the commitment of companies in their green initiative.
To recommend strategies that makes green products truly viable and workable.
Methodology
The methodology used for this study is exploratory in nature, and is based on secondary
information. The study analyses the existing concepts of green marketing and tries to discuss the
importance of three additional Ps, namely people, planet and profit in Green Marketing mix. It also
explains the benefits and the concerns regarding the implementation of Green marketing. Finally it
dwells on strategies for achieving mass consumption of green products in the long run.
Definition
The American Marketing Association defines Green Marketing as the marketing of products
that are presumed to be environmentally safe for the consumers. It includes a wide range of activities,
viz., product modification, changes in the production process, modification of the advertising
messages, changes in the packaging of products, etc.,
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Some examples of Green Marketing
Green Marketing activities include the use of appropriate raw materials in the manufacture of
products. Companies can change the raw materials from chemicals to natural materials. Taking the
example of bath soaps, washing soaps, toothpaste, edible salt, etc., we observe that the manufacturers
claim that their products contain natural materials like neem, tulsi, clove oil, sea salt, milk and milk
cream, natural flowers for fragrances etc., instead of harmful chemicals. Listed below are examples of
some companies, which have taken a green initiative in India. This shows the commitment of Indian
companies, either as part of their corporate social responsibility or otherwise, to do something
worthwhile in this direction.
i. Tamil Nadu Newsprint and Papers Limited (TNPL) was awarded the Green Business Leadership
Award in the pulp and paper sector for the year 2009-10, based on the EVI Green Business Survey
conducted by Financial Express and Emergent Ventures India. This was given in recognition of two
clean development mechanism project implemented by the company generating biogas from bagasse
wash water, and using the same as a substitute for furnace oil.
ii. Tata Metaliks Ltd., (TML) has initiated the use of only sunlight during daytime in its offices.
iii. ITC has introduced Paper Kraft, a premium range of eco-friendly business paper. The companys
social and farm forestry initiative has greened over 80,000 hectares of arid land.
iv. Wipros computers division has launched energy star compliant products in the market.
v. HCL Technologies is moving towards phasing out hazardous vinyl plastic and brominated flame-
retardants from its products.
vi. Apple has adopted the philosophy that going green translates into alternative revenue streams. It
recycles e-waste and also generates revenue therefrom.
vii. IBM is selling green solution to corporate data centers where energy constraints and cost are
limiting their ability to grow, with the promise that the energy costs would be reduced by half.
viii. Oil and Natural Gas Corporation Ltd., (ONGC), Indias largest oil company, has introduced
energy-efficient Mokshada Green Crematorium, which saves 60% to 70% of wood and a fourth of the
burning time per cremation.
ix. IndusInd Bank installed the countrys first solar-powered ATM and thus brought about an eco-
savvy change in the Indian banking sector.
x. Idea Cellular implemented its national campaign Use Mobile, Save Paper. The company organized
Green Pledge campaigns to save paper and trees. Idea decorated bus shelters with potted plants and
tendril climbers to communicate the green message.
xi. Samsung, in fact, offers a host of eco-friendly products. It was the first to launch eco-friendly
mobile handsets (made of renewable materials) W510 and F268 in India.
xii. Nokias policy is to reduce the environmental impact of its products. It has taken the initiative to
take back, recover useful materials and dispose of waste in a manner that causes least harm to the
environment.
xiii. Hero Honda Motors philosophy of continuous innovation in green products and solutions has
enabled it to strike a balance between business, consumers and nature.
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xiv. Honda India introduced its Civic Hybrid Car. However, initially it was unable to sell the same
due to the high price. The price was reduced by Rs.8 lakh, and within a day, 98 Civic Hybrids were
sold, which was more than what Honda had been able to sell during the previous five months since its
launch.
xv. Maruti and Hyundai have come up with LPG and CNG based variants for WagonR and Santro
respectively.
xvi. Reva, Indias Bangalore-based company, was the first in the world to commercially release an
electric car. Reva is being sold in countries like UK, Ireland, Belgium, Spain, Cyprus, Greece and
Norway.
xvii. Mahindra Group had launched project Mahindra Hariyali in which one million trees would be
planted nation-wide by Mahindra employees and other stakeholders including customers, vendors and
dealers.
xvii. McDonalds restaurants use napkins and bags made of recycled paper.
Benefits of Green Marketing

Green Marketing results in a wide variety of benefits:
Environmental impact of industrial goods is reduced considerably, thereby providing a
cleaner, greener and safer environment.
Good quality products become available to consumers, though sometimes at a higher price.
The available natural resources are optimally utilized and conserved.
The corporate sector becomes more socially responsible.
There would be growth in the organic food industry and such others, thereby promoting the
overall health and well being of the people.
Lends impetus to small-scale ventures in many fields.
Companies engaged in development and marketing of green products achieve competitive
advantage over their rivals.
There is up gradation in the overall technology and products available in the market.
Concerns regarding implementation of Green Marketing As explained above there are many
benefits of green marketing. At the same time, there are many concerns regarding the commercial
viability of green products, their acceptance by consumers and also how beneficial they really are :
More importantly these is need for promotional activities which will create awareness regarding green
products and facilitate their sale. Sometimes, the markets are not mature enough to accept green
products because of their high price as compared to the non-green equivalents. So, green products have
to be made more affordable in order to increase their acceptance. Otherwise, customers may not see
any benefit in paying a high price for a product, when a cheaper substitute is available. Green
Marketing is still in its infancy, can gain tremendous advantage if the initiative comes from the
consumers, and companies are required to adopt practices in tune with consumer requirement.
Government regulations pertaining to eco-friendliness play a limited role. They are primarily confined
to regulating marketing claims and do not particularly aim at influencing consumer behaviour.
Therefore, while companies should be responsible in their activities and claims, clear-cut standards,
norms and regulations need to be put in place and properly enforced by the Governments. Penalties
should be imposed on companies as well as on consumers when there is any behaviour, which is
harmful to the environment. Further, customers too should be equally responsible in their purchase,
consumption and disposal of products and services.
52
CONCLUSION
In India, we have been following green marketing right from the use of biogas in villages to
using environment friendly products like bamboo furniture, which are popular in the northeast. In fact,
the pottery made from earthenware for drinking cool water rather than the refrigerator, is another
interesting example. The use of coolers rather than air conditioners goes a long way in reducing the
carbon footprint. However, these traditional items seem to be gradually losing their sheen, with more
and more people using modern gadgets and gizmos. Further, to take consumers are becoming more and
more conscious about the environment and are also becoming socially responsible. Therefore, green
marketing results in a wide variety of benefit. Alongside, there are many concerns regarding the
commercial viability of green products, their acceptance by consumers and also how beneficial they
really are. Thus, it can be concluded that although the government and many private companies have
been making an effort to bring about a green mindset among the people and promote green products, a
lot still need to be done to make green products truly viable and workable in India. For green products
to succeed, it is essential to educate consumers so that they demand green products and thus influence
business into becoming eco-friendly.
53
Mrs.G.Vijayalakshmi, Asst.Professor, STET School of Management
(CRM) is a widely-implemented strategy for managing a companys interactions with

customers, clients and sales prospects. It involves using technology to organize, automate, and
synchronize business processesprincipally sales activities, but also those for marketing, customer
service, and support. The overall goals are to find, attract, and win new clients, nurture and retain those
the company already has, entice former clients back into the fold, and reduce the costs of marketing
and client service. Customer relationship management describes a company-wide business strategy
including customer-interface departments as well as other departments measuring and valuing customer
relationships is critical to implementing this strategy. [
Introduction
Customer Relationship Management originated years before the start of the first millennium in
Mesopotamia. Farmers who were eager to sell their surplus produce became the first initiators of the
customer oriented processes we are now familiar with.
With the passage of time and the first millennium an accurate record of transactions was kept
by the merchants accounting for what was sold and whom it was sold to. This list of customers
provided the first comprehensive customer oriented data and proved to be the beginning of customer
oriented strategies. The advent of the 1990's however saw a more refined customer oriented
implementation taking place, laying the ground for the CRM strategy
What is CRM?
CRM stands for Customer Relationship Management. It is a process or methodology used
to learn more about customers' needs and behaviors in order to develop stronger relationships with
them. There are many technological components to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more useful way to think about CRM is as a process that will
help bring together lots of pieces of information about customers, sales, marketing effectiveness,
responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the behavior
of customers and the value of those customers.
CRM consists of three components:

1. Customer
2. Relationship
3. Management
Role of CRM in improving the Business

All businesses are there to support its clients for it to achieve success. The focus of all the
companies should be on their clients. In order to know the customer preferences, you will have to
collect, group and analyze customer details, a tool that aids you in doing all these process is called as
CRM Tool (Customer Relationship Management Tool). By knowing the likings and disliking of your
customer will help you build a strong bond with existing clients and also to attract many more new
clients.
The customer data and information will be stored in a central site, and with the help of CRM
tools you can access these details, manipulate them and make your decision from anyplace in the world
at all times. The customer targeted scheme will help companies build a strong link with their customers
and thus increasing its stronghold with its customer, giving a profitable Return of Investments thru the
business.
54
Managing different types are business activates are made easy because of these CRM tools.
Billing and Expense
Sales and Marketing
Human Resources
Project Management
FIVE Es of eCRM
The e in eCRM not only stands for electronic but also can be perceived to have many
other connotations. Though the core of eCRM remains to be cross channel integration and
organization; the six e: in eCRM can be used to frame alternative decisions of eCRM based upon the
channels which eCRM utilizes, the issues which it impacts and other factors; the six es of eCRM are
briefly explained as follows:
1. Electronic channels: New electronic channels such as the web and personalized e-messaging have
become the medium for fast, interactive and economic communication, challenging companies to keep
pace with this increased velocity. eCRM thrives on these electronic channels.
2. Enterprise: Through eCRM a company gains the means to touch and shape a customers experience
through sales, services and corner offices-whose occupants need to understand and assess customer
behavior.
3. Empowerment: eCRM strategies must be structured to accommodate consumers who now have the
power to decide when and how to communicate with the company through which channel, at what
frequency. An eCRM solution must be structured to deliver timely pertinent, valuable information that
a consumer accepts in exchange for his or her attention.
4. Economics: An eCRM strategy ideally should concentrate on customer economics, which delivers
smart asset-allocation decisions, directing efforts at individuals likely to provide the greatest return on
customer communication initiatives.
5. Evaluation: Understanding customer economics relies on a companys ability to attribute customer

behavior to market programs, evaluate customer interactions along various customer touch point
channels, and compare anticipated ROI
against actual returns through customer analytic reporting.
Over the past decade, customer relationship management solutions have evolved to the extent that they
enable a business to grow the lifetime value of its customers, as well as counter customer
defections.
The individual firm is thus caught in an ethical dilemma. It wants to collect as

55
TECHNICAL IMMATURITY
The concept, technologies, and understanding of CRM are still in its early adapter stage. Most
of the CRM technologies are immature and the typical implementation costs and time are long enough
to frustrate potential users.
Many software and hardware vendors sell themselves as complete CRM solution providers but
there is little standardized technologies and protocols for CRM implementation in the market. Even the
scope and extent of what CRM
includes differ from vendor to vendor; each has different implementation requirements to achieve the
customers expectations.
Benefits of CRM
A CRM system may be chosen because it is thought to provide the following advantages]
Quality and efficiency
Decrease in overall costs
Decision support
Enterprise agility
Customer Attention
CONCLUSION
In summary, to implement CRM successfully, you'll have to reorganize your customer and
change your organizational mindset. When CRM works, it helps to solve this problem by meshing
everyone together and focusing the entire organization on the customer. Like all strategic initiatives,
CRM requires commitment and understanding throughout the company, not just in marketing. In all, it
adds to a sense of expectation and lty being instilled within the consumer and the development of a
relationship between company and customer that competitors find hard to break. Business decisions
based on complete and reliable information about your customers are very difficult for your
competitors to replicate and represent a key and sustainable competitive advantage
56
GREEN MARKETING ISSUES AND CHALLENGES
Praveen Kumar.T Lecturer - St.Peters College Of Engineering And Technology,Chennai
Introduction:
The term Green Marketing came into dominance in the late 1980s and early 1990s, began in
Europe in the early 1980s when certain products were found to be harmful to the environment and
society as a whole. Consequently new types of products were created, called "green" products that
would cause less damage to the environment.
Divergent aspects of green marketing include ecologically safer products, recyclable and
biodegradable packaging, energy-efficient operations, and better pollution controls. Advances produced
from green marketing include packaging made from recycled paper, phosphate-free detergents,
refillable containers for cleaning products, and bottles using less plastic.
As todays consumers become more conscious of the natural environment, businesses are
beginning to modify their own thoughts and behaviour in an attempt to address the concerns of
consumers. Green marketing is becoming more important to businesses because of the consumers
genuine concerns about our limited resources on the earth. By implementing green marketing measures
to save the earths resources in production, packaging, and operations, businesses are showing
consumers they too share the same concerns, boosting their credibility.
Definition:
Pride and Ferrell (1993) Green marketing, also alternatively known as environmental
marketing and sustainable marketing, refers to an organizations efforts at designing, promoting,
pricing and distributing products that will not harm the environment
Polonsky (1994) defines green marketing as .all activities designed to generate and facilitate
any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and
wants occurs, with minimal detrimental impact on the natural environment.
According to Peattie (2001), the evolution of green marketing can be divided into three
phases; first phase was termed as "Ecological" green marketing, to help solve environment problems
through remedies. Second phase was "Environmental" green marketing with focus on clean technology
that involved designing of innovative new products, which take care of pollution and waste issues.
Third phase was "Sustainable" green marketing came into prominence in the late 1990s and early 2000
where it becomes necessary for companies to produce environment friendly products as the awareness
for such products is on the rise as customers are demanding eco-friendly products and technologies.
INTRODUCTION TO GREEN PRODUCTS:

The majority of green products have one or more of the following health or environmental
attributes:
They promote clean air quality (typically through reduced emissions)
They are durable and have low maintenance requirements.
They are recyclable and reusable.
They are made using natural, renewable or environment friendly resources.
They do not contain any ozone-depleting substances like green house gases.
They do not contain highly toxic compounds, and their production does not result in highly
toxic by-products or waste products harmful to society and environment.
For wood or bio-based products, they employ "sustainable harvesting" practices
They are biodegradable.
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INITIATIVES TAKEN UP BY BUSINESS ORGANISATIONS TOWARDS GREEN
MARKETING:
India is growing at 9% annually and expected to double its energy consumption between 2009
and 2030, is under pressure to take action for providing clean environment for all future generations to
come. Many Indian companies have come forward for the cause of environmental concerns and issues
requiring immediate attention like: global warming, Water and Air pollution, E-waste.
In India, around 25% of the consumers prefer environmental-friendly products, and around
28% may be considered healthy conscious. Therefore, there is a lot of diverse and fairly sizeable
untapped segment in India which green marketers can serve through offering eco-friendly products for
profitability and survival in the era of globalization.
GLOBAL SCENARIO OF GREEN MARKETING

According to Paul Stoneman, financial incentives are necessary if the market for green
products is to improve and grow.
Consumers in the United States are expected to double their spending on green products and
services in the next year to an estimated $500 billion, according to an annual consumer survey by
Landor Associates.
According to market researcher Mintel, about 12% of the U.S. population can be identified as
True Greens, consumers who seek out and regularly buy so-called green products. The European
Commission's new "Green Package" of legislation on climate change and renewable energy represents
a significant potential opportunity for European utilities, according to a report released by The Brattle
Group and Trilemma UK. The Green Package sets targets that represent a step change in the energy
market: save 20% of energy, increase the share of renewable energy to 20%, and cut greenhouse gas
emissions by at least 20%, all by 2020.
According to Mintel's report, 66% of consumers in United States do not buy green products
because of high cost, while 34% say there is lack of availability of green products in the market. This
shows the huge potential for untapped market and customer demand and requirement for eco-friendly
products which the companies can exploit for capturing the market share and thereby enhancing the
profitability and sustainability of the organisation in the global competitive scenario.
GREEN MARKETING ADOPTION BY THE FIRMS:

Green marketing has been widely adopted by the firms worldwide and the following are the
possible reasons cited for this wide adoption:
OPPORTUNITIES:
As demands change, many firms see these changes as an opportunity to be exploited

and have a competitive advantage over firms marketing non-environmentally
responsible alternatives. Some examples of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs
McDonald's replaced its clam shell packaging with waxed paper because of increased
consumer concern relating to polystyrene production and Ozone depletion.
58
SOCIAL RESPONSIBILITY:
OPTING THE RIGHT GREEN MARKETING STRATEGY:
Green marketing has not lived up to the hopes and dreams of many managers and activists.
Although public opinion polls consistently show that consumers would prefer to choose a green
product over one that is less friendly to the environment when all other things are equal, those "other
things" are rarely equal in the minds of consumers.
And hopes for green products also have been hurt by the perception that such products are of
lower quality or don't really deliver on their environmental promises. Yet the news isn't all bad, as the
growing number of people willing to pay a premium for green products from organic foods to energy-
efficient appliances attests.
How, then, should companies handle the dilemmas associated with green marketing? They
must always keep in mind that consumers are unlikely to compromise on traditional product attributes,
such as convenience, availability, price, quality and performance. Since there is no single green-
marketing strategy that is right for every company experts suggest that companies should follow one of
four strategies, depending on market and competitive conditions, from the relatively passive and silent
"lean green" approach to the more aggressive and visible "extreme green" approach with "defensive
green" and "shaded green" in between. Managers who understand these strategies and the underlying
reasoning behind them will be better prepared to help their companies benefit from an environmentally
friendly approach to marketing.
CONCLUSION:
Green marketing covers more than a firm's marketing claims. While firms must bear much of
the responsibility for environmental degradation, the responsibility should not be theirs alone.
Ultimately green marketing requires that consumers want a cleaner environment and are willing to
"pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental
intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution.
The industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an
environmental committed organization may not only produce goods that have reduced their detrimental
impact on the environment, they may also be able to pressure their suppliers to behave in a more
environmentally "responsible" fashion. Final consumers and industrial buyers also have the ability to
pressure organizations to integrate the environment into their corporate culture and thus ensure all
organizations minimize the detrimental environmental impact of their activities. Thus green marketing
should look at minimizing environmental harm, not necessarily eliminating it.
References:
1. www.greenmarketing.net/stratergic.html
2. www.indiagreen.com
3. Paryavaran Mitra, Ahmedabad.
4. Indian Journal of Marketing, New Delhi.
59
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Mohamed Naimudeen. A, Assistant Professor, Department of Management Studies,
St.Michael Engineering College.
ABSTRACT
Customer relationship management (CRM) is a widely-implemented strategy for managing
a companys interactions with customers, clients and sales prospects. It involves using technology to
organize, automate, and synchronize business processes principally sales activities, but also those for
marketing, customer service, and technical support. The overall goals are to find, attract, and win new
clients, nurture and retain those the company already has, entice former clients back into the fold, and
reduce the costs of marketing and client service. Customer relationship management describes a
company-wide business strategy including customer-interface departments as well as other
departments. Measuring and valuing customer relationships is critical to implementing this strategy.
Customer Relationship Management is one of the hottest and most talked about topics in the industry
today and for good reason. CRM (customer relationship management) is an information industry term
for methodologies, software, and usually Internet capabilities that help an enterprise manage customer
relationships in an organized way. Simply stated, Customer Relationship Management (CRM) is
about finding, getting, and retaining customers. CRM is at the core of any customer- focused business
strategy and includes the people, processes, and technology questions associated with marketing, sales,
and service. In todays hyper-competitive world, organizations looking to implement successful CRM
strategies need to focus on a common view of the customer using integrated information systems and
contact center implementations that allow the customer to communicate via any desired communication
channel.
Introduction
Customer Relationship Management (CRM) is an enterprise-Wide initiative that belongs to all
areas of an organization (Sing and Agarwal, 2003). It reflects the comprehensive strategy and process
of acquiring, retaining,and partnering with selective customers to create superior value for the company
and the customer.
Literature Review
Still relationship marketing appears to be an expensive alternative to firms practicing mass
marketing due to the relatively high initial investments. Firms would adopt relationship marketing only
if it has the potential to benefit them. The benefits come through lower costs of retention and increased
profits due to lower defection rates (Reichheld and Sasser, 1990).When customers enter into a
relationship with a firm, they are willingly foregoing other options and limiting their choice. Some of
the personal motivations to do so result from greater efficiency in decision-making, reduction in
information processing, achieving more cognitive consistency in decisions and reduction of perceived
risks with future decisions (Sheth & Parvatiyar, 1995)
Research Objectives
The current research was aimed at determining the approach being adopted by businesses in
India for customer relationship marketing.
Building long term and profitable relationships with chosen customers.
Getting closer to those customers with every point of contact.
Management in service firms believe that their processes are customer centric
Selecting technology based on an understanding of customer needs
Empowered employees to deliver superior service
Have a customer knowledge strategy
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5- Factors rely on customers Relationship growth:
The adoption of quality and standard programs by companies.
The growth of service industries.
Rapid technological improvements, especially in information and communication.
Organizational development leads to the empowerment of individual and teams.
An advance in the competitive intensity leads to concern for customer retention.
Major CRM Strategic Capabilities:

Technology: This will enable the desired functionality for CRM practice.
People: Skills, abilities and attitudes of the people responsible for CRM initiatives.
Process: The company can ensure that the CRM objectives are fulfilled that include transactional
interactions.
Knowledge and Insight: To ensure stronger and deeper relationship with the right set of customers.
Companies need to identify the right approaches that will enable them to gain knowledge to gain
insight for enhancing the customer value significantly.
Methodology The research was exploratory in nature. 20 respondents from textile owners and Jewelers
owners operating in Aruppu kottai were surveyed through respondent administered questionnaires.
The survey focused on the quality and customer centric processes, technology selection, the owners of
selected outlets were interviewed to understand the relationship marketing practices adopted by them.
These interviews explored the following Techniques-

Price Discount & Cash Discounts.
Festival and Seasonal Offers
Gifts and Complements
Entertainment & Amusements to kids
Warm welcome & Respect to the consumers
Purchase assistance
CRM Techniques Respondents
Opinion
Price Discount & Cash Discounts. 90%

Festival and Seasonal Offers 80%
Gifts and Complements 60%
Entertainment & Amusements to kids 60%
Warm welcome & Respect to the 65%
consumers 75%
Purchase assistance
The above table shows the Various CRM techniques followed by the textile and Jwellers company to
retain customer and profess to encourage the loyalty towards the particular brand name.
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Textile & Jwellers

90% 80%
100% 60% 60% 65% 75%
50%
0%
CONCLUSION
The following conclusions can be drawn from the study:
As the key consumers become opinion leaders in these consumer communities, it is vital for
organization to identify the components that build trust worthiness of these individuals. The opinion
leaders can be subsequently leveraged by organizations to build greater value for their communities,
brand and products.
REFERENCE
1. Rajan Saxsena (2007),Marketing Management, McGraw-Hill Publication, Third Edition.

2. Paul Greenberg (2003), CRM at the speed of Light, McGraw-Hill Publication, Second
Edition.
3. Shirin Alavi, Vandana Ahuja and Medury (2011), ECRM Using Online Communities,The
IUP journal of Marketing Management,Vol X,No,1,2011.
62
CUSTOMER AND BRAND EQUITY
Mrs. K.R. Padma Priya M.com., M.Phil., M.B.A., Research Scholar & Asst Professor,
Anna Adarsh College For Women, Chennai 600040.
INTRODUCTION
In the modern money using economy marketing gains momentum persistently in all walks of
human life. Marketing starts with identifying latent needs, developing and promoting the products and
services at the middle and ends with providing utmost satisfaction to the human beings. In this process
marketing involves with introduction and promotion of utility goods and services. With the advent of
new economic reforms in 21st century marketing may be felt as an indispensable and unequivocal
activity that stimulates, provides and protects the needs satisfying means.
Thus, marketing enunciates research process to comprehend and to test the trueness and
appropriate usage of various strategies relating to linking the elements of marketing mix viz., product,
price, promotion and physical distribution. Any conclusion derived may be in vain if marketing could
not understand how the consumer gets satisfied, and the extent to which they support a particular
product in the long run in order to provide a base for sustainable growth of a firm which initiates,
activates and keeps going on formulating marketing strategies and actions. The quality of marketing is
reflected by the extent of customers satisfaction. The success of marketing is resorted to how a product
reaches the customer in terms of quality, price and other product benefits. Hence, marketing undertakes
promotion maintenance of a brand which would be a motivating factor to the customer in identifying
the product and its bestowed services.
Many research studies have been exploring new thoughts and advocating new philosophy, out
of which brand concepts of the product gained impetus in recent times. Of all the concepts of brand
viz., brand awareness, brand knowledge and brand loyalty, brand equity has emerged as the central
concept in marketing over the past twenty years. The brand equity of a particular product would be an
outcome derived from the consumers response that penetrates the product to live long in the midst of
hectic competition.
BRAND EQUITY
Brand equity has emerged as the central concept in marketing over the past 20 years. Much
attention has been devoted recently to the concept of brand equity. Brand equity has been viewed from
a variety of perceptive; more had been learnt about the source of brand equity as well as its many
benefits for a firm and its customers. In todays competitive battleground, the concept of brand equity
has proved to be an important source of strategic insights for marketers.
CUSTOMER BASED BRAND EQUITY

CBBE incorporates recent theoretical advances and managerial practices to understand and
influence consumer behaviour. It gives a good exposure to the marketer to build a strong brand. Keller
(1998), Customer-Based Brand Equity (CBBE) framework identifies a brands meaning as the key to
create equity. He also stresses that meaningful differences among brands derive from brand
associations that are unique, favorable and strong. Finally, he points out that firms enjoy a number of
brand equity benefits related to growth and profits that ensure from increased customer loyalty levels.
The possibility of extending loyalties from one generation to the other is an added benefit that has not
yet been well recognized.
NEED OF THE STUDY

The CBBE referred to consumers ability to retain and recall the benefits and attributes of a
particular product in the long run. From this, it may be noted that brand equity is an extension of brand
knowledge and brand loyalty.
Thus, a brand is said to have equity to the extent that consumers are more willing to purchase
the branded product over an identical unbranded product. Any product may be restored with brand
63
equity only when the marketing efforts are inspiring the customers not only to get intended with a
product but retained with it and get satisfied in the future. Any effort that interacts marketing efforts
and learning about consumers would emphasize in identifying the extent of existing brand loyalty
ending with equity for the produce. It provokes the researcher to choose the present study for the
purpose of identifying the presence of the brand equity. Therefore, the present study makes an
important distinction between what brand is at the marketer level, and how it is manifested at the
consumer level.
STATEMENT OF THE PROBLEM

Every individual is a potential consumer of goods and services. The needs of the consumers
throughout the world are similar, while the social, environmental and other forces that vary from place
to place lead to differences I n buying and consumption patterns. They need information and guidance
to help them decide on the relative merits of different products.
Thus, marketing consists of a set of principles for choosing target markets, evaluating
consumers needs, developing wants, satisfying product and services and delivering values to
customers and profit to the company. Most successful companies owe their success to their practice of
a thorough going marketing orientation.
Business investors recognize the legalized brand name of the product as the companys most
valuable asset. So the firm has to manage its own brand by not allowing the consumers to have a favour
over the other brands. Thus, marketing battle will be a battle for brands. Thus, marketing and consumer
research penetrates to identify the variables causing a concern to retain the customer forever to
accomplish their end means by propagating not only the product innovation but also to retain and
restore the product, starting with brand name / awareness and ending with brand equity. Hence, an
attempt is imperative to thoroughly study the brand equity.

The underlying objectives of the study are framed, formulated and analysed for screening the
existence of brand equity.
To identify and analyse the relationship of brand equity with socio economic characteristics of
the consumers.
To analyse the association between the brand equity and its fundamentals viz., product
attributes, purchase decision, post purchase behavior and sales promotion mix.
To identify the relationship of brand equity with regard to awareness, loyalty, association,
performance and knowledge of brand.
METHODOLOGY
The study is conducted using both analytical and descriptive type of methodology. The study depends
upon primary and secondary data. The primary sources like questionnaires and secondary sources like
books, journals etc, are used for collecting the data.
SUMMARY OF FINDINGS
The study reveals that most of the respondents are male, moderately educated, employed in
private sector with a family size of 3-5 members and having marginal income.
The interest, awareness and knowledge over different attributes are more among the
respondents
It is identified that the purchase decision depends upon the two factors namely price-quality
and service-availability.
The consumers distinguish themselves from gender, age and income.
Promotion and marketing mix are of the crucial factors that create significant impact on all the
elements of brand equity.
Brand awareness can be identified as Reputation-Offer and Appearance-Performance.
64
It is identified that advertisement, brand recall, consistency, relevancy and utility constitute
brand association.
Place of buying has no association with cluster of customers as they buy their products
wherever they are available.
It implies that brand shift affects and impedes the building block of brand equity
CONCLUSION
The study deals with the concept of customer based brand equity considering the perception of
customers in fetching equity to the product that they use.
Selected demographic variables are considered as important factors which are signifying the
formation of brand equity among the customers.
As years of using the same brand is increased the customers attitude becomes positive to build
brand equity.
Promotion and marketing mix are tremendous essential factors that influence the various
elements of brand equity.
65
MARKETING STRATEGIES FOR SERVICE FIRMS
Mrs. R. M. Shanthi, Head, B.Com (Bank Management) ,
R. B. Gothi Jain College For Women Redhills, Chennai.
INTRODUCTION:
Marketing theory and practice developed initially in connection with physical products
such as toothpaste, cars and steel .Yet one of the major trends of recent years has been the
phenomenal growth of services . In the united states , service jobs now account for 79 % of all
jobs and 74% of gross domestic product . These numbers have led to a growing interest in
solving problems of marketing services .
A service is any act or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything . Its production may may
not be tied to a physical product .
DEFINITION
American Marketing Association defines services as activities , benefits or satisfactions
which are affected for sale or are provided in connection with the sale of goods .
Services are intangible dominant products that cannot be seen , felt , sensed and cannot
be physically possessed . Services are differentiated from goods in the following respects :
Intangibility , inseparability , perishability , fluctuating demand , heterogeneity , lack of
standardization etc . Hence marketing of services needs a highly differentiated marketing system
particularly on account of absence of certain marketing functions.
MARKETING STRATEGIES:
Until recently , service firms lagged behind manufacturing firms in their use of
marketing . But his has changed. Three additional Ps like people , physical evidence and
process are required for service marketing The service outcome is highly influenced by a
host of variables .Service marketing requires external marketing and internal and interactive
marketing . External marketing describes the normal work to prepare , price , distribute and
promote the services to customers . Internal marketing the work to train and motivate the
employees to serve the customer well . Interactive marketing describe the employee skill in
serving the client. The service companies have the following strategies to attract the loyal
customers:
1. MANAGING DIFFERENTIATION: Service marketers frequently complain about the

difficulty of differentiating their services. To the extent that customers view a service as
fairly homogeneous , they care less about the provider than the price The alternative to price
competition is to develop a differentiated offer , delivery , or image .
a. Offer : The offer include innovative features . Primary service package and secondary
service features are expected by the customers . Many companies are using the Web to offer
secondary service features that never possible before. But the major challenge is that most
service innovations are easily copied . Sill the company that regularly introduces innovations
will gain a succession over competitor
b. Delivery ; A service company can hire and train better people to deliver its service . It can
develop a more attractive physical environment in which to deliver the service
c. Image ; Service companies can differentiate their image through symbols and branding.
66
2. MANAGING SERVICE QUALITY
A service firm may win by delivering consistently higher quality service than
competitors and exceeding customers expectations . These expectations are formed by their past
experiences , word of mouth and advertising . After receiving the service , customers compare
the perceived service with expected service .The determinants of service quality are
reliability , responsiveness , assurance , empathy and tangibles . The service companies follow the
following common practices:
a. Strategic concept : The service companies develop a strategy for satisfying the
customer needs .
b. Top management commitment :The management looks for not only financial
performance but also a service performance .
c. High standard. The service providers set service - quality standards.
d. Monitoring systems :The service firms audit their service performance by adopting the
devices like comparison shopping , ghost shopping , customer surveys , suggestion and
complaint forms .etc .
e. Satisfying both employees and customers : The service companies carries out internal
marketing and provides employee support and rewards for good performance .
Management regularly audits employee job satisfaction.
1. MANAGING PRODUCTIVITY
Service firms are under pressure to keep costs down and increase productivity .
a. Hire more skillful workers through better selection and training.
b. Increase the quantity of service.
c. Adding equipment and standardizing production.
d. To present customers with incentives.
e. Reduce or make obsolete the need for a service by inventing o product solution .
Technology has great power to make service workers more productive. companies must
avoid pushing productivity so hard so that they reduce perceived quality .Some methods lead to
too much standardization and rob the customer of customized service .
CONCLUSION:
To conclude it can be said that , in the post industrial society , the service has grown
rapidly and services are deciding the quality of life .Economic development of society and the
accompanying socio-cultural changes are reasons behind the growth of service sector . Hence,
marketing strategy is more important to fulfill the socio and psychological needs of mankind .
67
CONCEPTUALIZING, MEASURING, AND MANAGING
CUSTOMER-BASED BRAND LOYALTY
Dr. V.N. JOTHI, Associate Professor, Department of Commerce, Kanchi Shri Krishna College of Arts
and Science College, Kilambi, Krishnapuram 631 551, Kanchipuram
ABSTRACT
This paper attempts to diagnose some realities behind branding by measuring consumer
attitude in purchase decision on branding, purchase loyalty and attitudinal loyalty. Behavioral or
purchase loyalty consist of repeated purchase of brand, whereas attitudinal brand loyalty includes a
degree of dispositional commitment in terms of some unique value, associated with the brand. Result
suggest that consumers have preference for branded product and they feel branded products are very
useful in identifying products and for guaranteed quality of products. The results of brand loyalty
reveals that majority of consumers exhibit medium level of brand loyalty and if marketer fails to
reciprocate the loyalty they can not sustain the patronage of consumers in the long-run.
Conceptualizing, Measuring, and Managing Customer-Based Brand Loyalty
Objectives of the study

The objectives of the study are:
To find out the demographic variable contributing to the brand loyalty.

To investigate customers response to advertisement.
To study customers information search and brand loyalty process.
Methodology of the study

The study is explorative in nature and focuses basically on primary data about customer
preference for consumer goods. The study is based on convenient sampling. A well-structured and pre-
tested questionnaire was administered to the respondents for the collection of data. A sample size of
100 has been taken for the purpose of the study.
Brand loyalty and the advertisement response of customers are considered as dependent
variables. Brand loyalty was measure by agreement with twelve statements constructed to reflect either
the purchase related or attitudinal aspects of brand commitment and these statements relating to various
means by which consumer try to influence their preference. The respondents are asked to mark their
answer on a five point Likert Scale. Advertisement response is consist of seven statements drafted in a
five point likert scale with scores from one to five from strongly disagree to strongly agree. Product
characteristics are considered as independent variable. To identify the level of influence on the brand
loyalty, the customers were asked to respond on a five point scale ranging from very high to very low.
Brand Loyalty
The Varimax factor analysis with Kaiser Rotation is carried out over twelve statements of
brand loyalty aimed at the reduction of these statements into profound explanatory factors. In this
factor analysis, two factors are identified comprising of the following statements named as purchase
and attitudinal loyalty. The factor analysis reduces the twelve statements into two factors as given
below:
Factor 1 Purchase Loyalty

The related statements are:
I trust this brand
I rely on this brand
This is an honest brand
This brand is safe
I will buy this brand more frequently
68
I intend keep purchasing this brand and
I feel good when I use this brand
The factor loading registered for these statements are 0.733, 0.747, 0.706, 0.672, 0.672, 0.647, and
0.579 respectively.
Factor 2 Attitudinal Loyalty

I would be willing to pay a higher price for this brand over other brands
I am committed to this brand
This brand makes me happy
This brand would your recommend and
This brand gives me pleasure
The factor loading registered are 0.739, 0.672, 0.638, 0.600, and 0.582 respectively
The customers apply two types of loyalty to convince their brand when they decide to buy
products. It is inferred from above analysis that customers predominantly apply purchase loyalty and
use less attitudinal loyalty, to get the desired product.
Table 1
Percentage of Variance of Brand Loyalty
Extraction Sums of Squared Loadings
Eigen value % of Variance Cumulative %
4.814 40.120 40.120
1.272 10.598 50.718
Source: Primary data.
The total variation explained by the variables of brand loyalty is 50.718%. In the total
variation, the first factor purchase loyalty exhibits a very high variance of 40.120% followed by
(10.598%) variance of the attitudinal loyalty.
Advertisement Response
The Varimax analysis with Kaiser Rotation is carried out over seven statements of
advertisement response against brand loyalty aimed at the reduction of the variables into profound
explanatory factors. In this factor analysis, two factors are identified. They are decision making
response and informative response. The factor analysis reduces the seven variables into two factors are
given below:
Factor 1 Decision Making Response

Advertising results in lower price
Advertising promotes competition which benefits the consumer
Advertising is valuable source of product information
Brand that are advertised are better in quality than brands that are not advertised
Advertisements present a true picture of the product advertised.
Factor 2 Informative Response

Advertising persuades people to buy things, they should not buy
Advertising tells me which brands have the features I am looking for
The total variation explained by these variables is 64.125 percent. This analysis identified two
categories of advertisement responses. The first factor decision making response has a contribution of
49.645 percent followed by informative response 14.479 percent. Hence two types of responses are
identified
.
69
Table 2, Percentage of Variance of Advertisement Response and Brand Loyalty
Extraction Sums of Squared Loadings
Eigen value % of Variance Cumulative %
3.475 49.645 49.645
1.014 14.479 64.125
In the Decision Making Response, the highest supporting factor is they discuss the
advertising results lower prices, which has a factor loading of 0.812, followed by benefits to the
consumer with a factor loading of 0.780, expressing their opinion towards valuable sources of product
information which has a factor loading 0.749, try to identify better quality brand has the factor loading
0.723, and finally present a true picture of the product with a factor loading 0.549 also supports this
factor. This demonstrates that the customers try to use each aspect to take decision.
However in the case of Information Response, the first highest contributing factor is
advertising persuades people to buy things that has a factor loading of 0.870 followed by advertising
tells me which brand have the features with a factor loading of 0.792.
Impact of demographic variables on the brand loyalty

An attempt has been made to identify whether there is a difference in the level of purchase and
attitudinal loyalty based on various demographic variables. To test this ANOVA is used and the results
are shown in Table 3.
Table 3, Demographic variables and Brand Loyalty
Mean
Source Dependent Variable F Sig.
Square
Purchase Loyalty 8.606 0.354 0.555
Age
Attitudinal Loyalty 0.235 12.944 0.001**
Gender
Attitudinal Loyalty 0.176 0.287 0.592
Male
Female
Attitudinal Loyalty 4.988 6.496 0.011*
Occupation
Income
Married
Unmarried
Number of members
Number of children
Note: * 5% and ** 1% levels of significant
From the above table 3, it is found that attitudinal loyalty varies based on age, female,
occupation and income significantly loyal, rest of the demographic variables does not loyal.
Education Level and Brand Loyalty

It is found that attitudinal varies significantly based on educational level. The difference
exhibited in the brand loyalty which can be further explained with the mean values in table 4.
70
Table 4, Educational Level and Brand Loyalty
Purchase Loyalty Attitudinal Loyalty
Educational Level Standard Standard
Mean Mean
Deviation Deviation
School Education 2.822 0.9259 3.489 0.6905
Graduate 2.692 0.8272 3.436 0.8308
Post Graduate 2.627 0.9222 3.348 0.7365
Professional 2.655 0.8388 3.287 0.9706
The mean value for purchase loyalty in respect of education varies from Schooling to
Professional education. The mean values are 2.822, 2.692, 2.627, and 2.655 respectively. Comparing
the mean values of attitudinal loyalty based on education it is found that when the education is higher,
they become more attitudinal towards their purchase. This can be substantiated by a mean value, which
is the highest (mean = 3.489) for respondent who are in the school education and the least (mean =
3.287) for the education upto professional. Purchase loyalty is less.
Income Level and Brand Loyalty

It is found that attitudinal loyalty varies significantly based on income level. The difference
exhibited in the brand loyalty can be further explained with the mean values in table 5.
Table 5, Income Level and Brand Loyalty
Purchase Loyalty Attitudinal Loyalty
Annual Income (Rs.) Standard Standard
Mean Mean
Deviation Deviation
> 1.5 lakhs 2.741 0.8817 3.605 0.7149
< 1.5 to 3 lakhs 2.651 0.8682 3.287 0.7614
< 3 to 5 lakhs 2.673 0.8722 3.428 0.6735
< 5 lakhs 2.695 0.9356 3.347 0.8768
The mean value for attitudinal loyalty in respect of annual income varied from income less
than Rs. 1.5 lakhs to more than Rs. 5 lakhs. The mean values were 3.605, 3.287, 3.458, and 3.347
respectively. Comparing the mean values of attitudinal loyalty based on annual income, it was found
that when the income is higher in the group below Rs. 1.5 lakhs.
Advertisement Response and Brand Loyalty

Advertisement response consists of two factors, namely decision making response and
informative response. Brand loyalty is divided into two factors, namely, purchase loyalty and
attitudinal loyalty. In order to find out of relationship between the brand loyalty and the advertisement
response, Karl Pearsons coefficient of correlation is applied and the details are given in table 6.
71
Table 6, Relationship between Advertisement Response and Brand Loyalty
Loyalty Type of tests Decision making Informative
Pearson Correlation 0.161** 0.152**
Purchase Sig. (2-tailed) 0.000 0.001
N 100 100
Pearson Correlation 1 0.136**
Attitudinal Sig. (2-tailed) 0.001 0.003
N 100 100
Note: * 5% and ** 1% levels of significant
From the above table, it is found that there is a significant positive correlation between
advertisement response and brand loyalty. While purchase loyalty has a significant positive correlation
with both decision making response (r = 0.161) and informative response (r = 0.152) attitudinal loyalty
also has positive correlation (r = 0.136) with informative response. As such, it is inferred that
advertisement responses are both decision making and informative towards purchase loyalty and
informative towards attitudinal loyalty.
CONCLUSION
In conclusion the empirical result clearly shows that consumers maintain somewhat cautious
attitude towards branded products. Large consumers have appreciation for trustworthy branding
services. Branded products influence the consumers purchase decision but they seek real benefits from
brands. It has been noted that brands with high market share tend to have high levels of repeat purchase
among their users (Ehrenberg, Barnard, and Seriven 1997, Ehrenberg, goodhardt, and Barwise 1990).
Brand loyalty pattern also shows that consumers exhibit reasonable degree of the loyalty to favorite
brand. Influence of demographic factor is mainly found in the attitudinal loyalty. Hence, the marketers
must present the product with high attitudinal to induce the purchase. Educationalist was respond with
advertisement. The purchase loyalty and attitudinal loyalty play in the creation of brand loyalty.
Decision making and informative responses were each directly related to both purchase and attitudinal
loyalty.
REFERENCE
Aaker, David A., (1991), Managing Brand Equity: capitalizing on the value of a Brand Name, New
York: The Free Press.
Arjun Chaudhuri and Morris B. Holbrook, (2001), The Chain of Effects from Brand Trust and Brand
affect to Brand performance: the role of Brand Loyalty.
Assael, Henry, (1998), Consumer Behavior and Marketing Action, Cincinnati, OH: South-Western.
Dick, Alan S. and Kunal Basu, (1994), Consumer Loyalty: Toward an Integrated Conceptual
Framework, Journal of the Academy of Marketing Science, 22(Spring), 99-113.
Ehrenberg, Andrew S.C., N. Barnard, and J. Seriven, (1997), Differentiation or salience, Journal
Advertising Research, 37, (November /December), 82-91.
Ehrenberg, Gerald J. goodhardt, and T. Patric Barwise, ( 1990), Double Jeopardy Revisited, Journal
of Marketing, 54 (July), 82-91.
72
SERVICE MARKETING IN BANKING SECTOR
Mrs. S.Punitha Devi, Assistant Professor, Kongunadu Arts & Science College, Coimbatore.
Mrs.R. Rajalakshmi, Department of Commerce, Kongunadu Arts & Science College, Coimbatore.
INTRODUCTION:
The ability of most banks in most developing countries to deliver effective and satisfactory
services to their clients remains a challenge as a result of the continued use of traditional approaches in
the delivery of banking services. In this regard, such banks were faced with a situation where the
functions of their employees and the traditional service delivery functions they offered were no longer
their first interest.
Indian banking sector historically passed through five stages Pre-independence, Post-
independence, Pre- nationalization, Nationalization, Post-liberalization.
In all these stages other than the last stage, marketing was always considered not to be a bankers cup
of tea. But today, it is considered to be an integral management function in banking sector.
BANK MARKETING:
Marketing approach in banking sector had taken significance after 1950 in western countries
and then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced
banks to create new market. Banks had started to perform marketing and planning techniques in
banking in order to be able to offer their new services efficiently.
Bank marketing is the aggregate of functions, directed at providing services to satisfy

customers financial need and wants, more effectively and efficiently than the competitors keeping in
view the organizational objectives of the bank.
SERVICE MARKETING CONCEPT:

It is a managerial process of managing the services.
It is an organized effort for providing a sound foundation for the development of an
organization.
It is a social process helping an organization to understand the emerging social problems and
to take part in the social transformation process to justify its existence in the society.
PRINCIPLES OF BANK MARKETING:

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USERS OF BANKING SERVICES:
Users of banking
General users Industrial users
General users:
Persons having an account in the bank and using the banking facilities at the terms and
conditions fixed by a bank is known as general users of the banking services. Generally, they are found
small sized customers.
Industrial users:
The industrialists, entrepreneurs having an account in the bank and uasing the credit facilities
and other services for the establishment and expansion of their business are known as industrial users.
Generally, they are found large sized.
Prospectus:
It is also essential to clarify the term, Prospectus! The general or industrial prospectus does
not use the banking services at present but they have the potentials to become a customer if induced or
motivated in a right fashion.
REASONS FOR MARKETING SCOPE OF BANKING:

Change in demographic structure:
Differentiation of population in the number and composition affect quality and attribute of
customer whom benefits from banking services. Intense competition in financial service sector: The
competition became intense due to the growing international banking perceptiveness and recently being
non limiting for new enterprises in the sector. Increase in liberalization of interest rates has intensified
the competition.
Banks wish for increasing profit:

Banks have to increase their profits to create new markets, to protect and develop their market
shares and to survive on the basis of intense competition and demographic chance levels.
STAGES OF MARKETING SERVICES IN BANK:

The marketing comprehension that is performed by banks since 1950 can be shown as in
following five stages:
Promotion oriented marketing comprehension;

Marketing comprehension based on having close relations for customers;
Reformist marketing comprehension;
Marketing comprehension that focused on specializing in certain areas;
Research, planning and control oriented marketing comprehension.
STRUCTURE OF BANK MARKET:

Marketing activities of firms begin with determination of the market that they offer their
services or goods. Firms must find out the features of the market that it f anging market condition.
While marketing manager is arranging the variables under firms control, she/he should also adopt the
external variables. We could call the factors that affect banks market as technological developments,
legal arrangements and competition.
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SERVICE:
The banks are in a period that they earn money in servicing beyond selling money. The
prestige is get as they offer their services to the masses. Like other services, banking services are also
intangible. Banking services are about the money in different types and attributes like lending,
depositing and transferring procedures. These intangible services are shaped in contracts. The structure
of banking services affects the success of institution in long term. Besides the basic attributes like
speed, security and ease in banking services, the rights like consultancy for services to be compounded
are also preferred.
INTERNATIONAL STANDARDS:
Introducing internationally followed best practices and observing universally acceptable
standards and codes is necessary for strengthening the domestic financial architecture. This includes
best practices in the area of corporate governance along with full transparency in disclosures. In
todays globalised world, focusing on the observance of standards will help smooth integration with
world financial markets.
CONCLUSION:
Today, marketing services are of great emphasis on both customer and bank. Banks have too
many goals which they want to achieve. The face of banking is changing rapidly. For a strong and
resilient banking and financial system, therefore, banks need to go beyond peripheral issues and tackle
significant issues like improvements in profitability, efficiency and technology, while achieving
economies of scale through consolidation and exploring available cost-effective solutions. The quality
and quantity of banking products increased and a result of this, recent developments in marketing
thoughts in services such as internal marketing, network marketing, data base marketing and
relationship marketing became more favorable practices. These are some of the issues that need to be
addressed if banks are to succeed, not just survive, in the changing milieu.
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RURAL MARKETING TRIBULATIONS AND CHALLENGES IN INDIA
Mr.M.Ramesh Kanna, Assistant Professor, CARE School of Management, Trichy
Mr.J.Chandrakhanthan, Assistant Professor, M.A.M. B School, Siruganur, Trichy 621 105
INTRODUCTION
It is ironic that the census of India defines rural in the context of all that is not urban
considering of cities and towns. Infact a major part of the countryside still remains steeped in a life
style that is rural, largely dependent on agriculture and allied activated with almost of the country
living in 6,00,000 villages. In 1951, the urban population comprised 17.2% of the Indian population.
Today half a century later the number stands at 27.8% the result of creeping urbanisation at play.
Evolution of Rural Marketing

Before the evolution of an urban market for marketing was undertaken there seemed little
need to differentiate between needs and wants, with the emergence of urban markets, the very context
with in which marketing had to work got redefined. Modern marketing has evolved around meeting
demand in urban markets. The urban approach seems inadequate to understand and address the needs
of rural India. There is a definite need for a separate set of marketing strategies to tap rural markets and
need to redefine strategy based on a whole new set of parameters. A totally unique framework is
required to satisfy a rural market that is mere a mind set, rather than a geographical and demographical
reality.
Occupational Pattern of People in Rural Market

The demographic profile of people in a segment naturally affects their buying behavior. The
wage earner and salary earner cannot be expected to behave in the same way. A daily wage earner in
the rural area has to account for variations in income, whereas a salary earner brings home a assured
fixed amount and therefore can plan their buying pattern in a better way. In our country the companies
focusing on rural market fails to analyse this factor. of rural household heads cultivators/wage
earners.
The cultivators disposable income is highly seasonal, with mere disposable income available
immediately after the harvesting season. This is therefore the time when he is more inclined to make
purchase, especially of durables and high involvement products. The purchases at such times are quite
significant, as 40% of the rural population i.e. 50 million families in our country are farmers.
Distribution of Households by Occupation of the heads (1999-2000)

Distribution of Households
Heads Occupation
Urban Rural All
Housewife 0.84 1.01 0.96
Cultivator 3.45 40.86 29.99
Wage earner 20.93 35.28 31.12
Salary earner 40.72 11.28 19.84
Professional 3.59 0.73 1.56
Artisan 6.90 3.41 4.42
Petty shop-keeper 16.05 4.97 8.19
Businessman 3.68 0.46 1.40
Others 3.85 1.98 2.52
Total 100.00 100.00 100.00
Source: NCAER 2002
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The Changing face of Rural Development
Over the past five decades between 1950 and 2000, the rural economy in India has graduated
from being a barter economy to cash-rich economy. Since 1951, when the first five year plan was
introduced, as number of initiatives have been taken by the government to improve the quality of life of
rural people. The main pillars of economic planning have to seek growth with equity. The allocation for
rural development has increased from Rs.8900 crore in the seventh plan to Rs.34,400 crore, Rs.89000
crore and Rs.1,20,000 crore in the eighth, ninth and tenth plans respectively. Rapid increase in the
literacy level (59% by 2001) improvement in health indicators, increase in per-capita expenditure,
improvement in housing, decline in poverty levels and increase in life expectancy are factors that have
resulted in the improvement of human development indicators in rural India.
Population below the Poverty Line (Rural)

No. of Person
Period % of Persons Poverty Line (Rs.)
(Million)
1983 252 46 89.5
1993-94 244 37 206
1999-200 193 27 328
Source: Human Development Report 2001
Incomes & Consumptions in Rural India
Rural Income contributes around 57% share of the total incomes in India. The per-capita
income for the rural sector has increased from 5783 in 1993-94 to Rs.9481 in 1999-2000. The Urban-
rural disparity ratio has declined form 2.45 to 2.04 during the last thirty years. The share of non-farm
income has increased rapidly from 32% in 1970-71 to 47% in 1993-94
Source: MART Research on NCAER data, 2002 & Census 2001
Consumer Behaviour in Rural Areas

A complex set of factor influence rural consumers behaviour. Social norms, traditions, caste
and social customers have great influence on the consumer behaviour in the rural areas than in urban
areas. The seasonally of job and professions of rural customer influences the seasonally of rural
consumers demand. Given the fact that the landless labours and daily wage earners get their income in
installments, their purchase is restricted to small quantities of products at a time, mostly on a daily
basis or once in two or three days. Purchase decision processes and preferences also show certain
characteristics that have implications for marketers. Exhibitions and road shows act as some of the key
triggers for information search behaviour. Opinion leaders and people who are perceived to be
knowledgeable play an important role as information providers and advisors. Word of mouth has more
significance in purchase decisions of rural consumers. Since the reach of the electronic media and other
mass advertising is low in rural areas, dependence on information, advice and suggestions from other
people are higher. However, as the exposure to mass media and information technology is increasing,
rural consumers are becoming more informed about products and services and their dependence on
traditional reference group is gradually waning. Rural consumers tend to be more loyal as brand
switching has greater perceived risk. Compared to their urban counterparts, rural consumers have
different interpretations of colours, symbols and social activities. Rural consumers show a preference
for bold, primary colours red colour connoted happiness and auspiciousness and green colour
prosperity.
Problems in Rural Marketing

The rural market offers a vast untapped potential. The Indian companies opinion towards the
operation in Indian market is time consuming, requires high investments in terms of evolving
appropriate strategies with a view to tackle the problem.
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Under developed people and under developed markets
The impact of technology is not felt and known uniformly by the people throughout the
country.
Lack of proper physical communication facilities

Nearly 50% of the villages in the country do not have all weather roads where the companies
are facing a crucial problem in distributing their materials. Physical communication to these villages is
highly expensive.
Inadequate media coverage for rural communication
A large number of rural families own radios and televisions, there are also community radio
and T.V. sets. These have been used to diffuse agricultural technology to rural areas. However, the
coverage relating to marketing inadequate using this aid of marketing.
Multiple Languages and Dialects
The number of languages and dialects vary from state to state and region to region. This type
of distribution of population wants appropriate strategies to decide the extent of coverage of rural areas.
Challenges faced by the companies in todays Rural Marketing Environment

Knowledge
Advances in information and communication technology have lastingly altered the peoples
mind set by the changing the way information is created, stored, used and shared. The company should
make the rural consumers to get an in depth knowledge about their products/services strategies.
Diverse group of Peoples

A diverse group of peoples refers to two or more groups, each of whose members are
identifiable and distinguishable based on demographic or other characteristics like gender, age group,
education etc. several barriers in dealing with diversity include stereotyping, chauvinism,
ethnocentrism, favouritism, tokenism and gender role types.
Responsiveness
An organization/company dealing with rural consumers has to be responsive to the challenges
and threats that it faces from the internal/external environment. It requires quick responsiveness to meet
the challenges and opportunities arising out of these changes.
Rapid changes in the market

Due to some changes in internal and external environment, rapid changes in the market may
occur. The companies have to be flexible to adjust to those changes
Check list for the companys strategy over the Rural Marketing Activities.
Does our company is having a clear view/mission about the rural customers.
What are the key areas to be concentrated in the rural marketing?
Do you regularly examine the strength and weakness in rural marketing oriented key
areas?
What objectives are set for each key area for what period?
Is there a regular matching of the companys product against market needs?
What about assessing the competitors strength and weaknesses? If identified with
what result.
CONCLUSION
Last but not least, with the fast improving rural infrastructure and higher exposure to city life
the sharp divide between urban & rural will get blurred in the coming years. This will lead the rural
consumers to consume all type of products which is available in the urban area. The companies may
concentrate on this prosperous market to sustain their market share for a greater extent.
78
GREEN MANAGEMENT
J.Shanmuganathan / Associate Professor/ K.S.R. School of Management, Tiruchengode.
A.S.Sathishkumar / Assistant Professor / K.S.R. School of Management, Tiruchengode.
C.Vinodkumar / Assistant Professor / K.S.R. School of Management, Tiruchengode.
S.Thiriveni Sripriya / Assistant Professor/ Janson school of business, Coimbatore
ABSTRACT
Global warming?? Ozone layer getting diffused? Air pollution, Deficiency in oxygen? Dry
Water resource? Poor Agricultural reformation? Like this we have many questions to be answered but
we are unanswerable.
In a global economy business and trading playing a crucial role in determine and distinguish
the national wealth and income like GNI, GDP and FDI. Every country want to encourage and motivate
all the business opportunities either internally or externally and also ready to accept and motivate the
ideas given by the business people, corporate and individuals. To win & Excel in business we human
being were forget all the fundamentals and nature of living which was taken care by our natural
resources like Agriculture, Rainfall and Climatic condition. Agriculture needs a good soil, natural
fertilizer and water resources. Now a day the natural rainy season is failing due to Global warming. For
human living comfort we have started destroying all the natural resources like forest and its dense tree,
maximization of transportation which emits carbon di oxide spoiling the air and creating huge air
pollution because of this air pollution and Industrialization where yielding lot of waste material and
create noise and land pollution.
In this circumstance the thermal temperature and sunrays were penetrating the ozone layer and
making it very weak. Environment creates lot of business opportunities by providing the well defined
resources needed for them. The growth in business feature makes a country economically sound such
as an improved standard of living and minimizing the poverty, improvement in literacy, employment
opportunities, development and growth in individual income, buying power and growth in technology.
In current scenario business is the best source to create wealth maximization. To establish and run a
business successfully; the various accessories are required such as place, buildings and infrastructure,
human resource, modern machinery and technology, electricity, water, and transportation. All these
accessories can be sourced from an environment and available natural resources. Todays business is
mainly having the motto to utilize the resources effectively rather than creating or sustaining. Utilizing
the natural resource continuously for development of infrastructure, raw materials which is needed for
business is increasing rapidly by demolishing the natural resources. This is going create big
environment cause and problem to the future generation.
This paper analyzing and planning to speak about the Green Management to be maintain or
balance for a harmony to run the business continuously without demolishing the natural resources.
Every country taking some steps for implementing green business to save their existing natural
resources but still developing countries like India, Brazil, Russia are facing lot of problem on various
factors. Sustaining and developing the natural resource is a biggest challenge in this competitive
environment for developing countries. An effective practice of green management will help for their
sustainability.
Introduction
Globally, every country has its own resources but it differs from the effective utilization of
those resources. Resources are vital for creating any type of product and services in the world. As
world population are increasing year by year proportionally resources requirements also increasing at
higher rate. People in the world want lot of innovative products for satisfying their needs and wants.
These products are created with effective technology which makes every business organization to
enrich their infrastructure, machinery and equipment for effective and efficient usage of resources. The
modern business trend is concentrating more on environmental aspects and organizations environment
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policies which producing eco friendly nature of products and services. Green management in business
helps to understand each process of business with its environmental effects for making exact protection
needed for an environment.
Green Management what and why?

In 21st century, many companies wants to integrate their business practices along with
environment and make the society to rethink about their basic requirements. Environment is a source
which gives all needed resources such as air, water, land etc., for a society. The resources are used to
create various products by undergoing series of process which yield to new product, but at the same
time lot of waste materials generated in each process and emission of gases like carbon monoxide,
sulpur di oxide, nitrogen di oxide will affects the atmosphere and ozone layer which leads to global
warming, climatic changes and volcanic explosion. To avoid this natural changes an effective
managing of green environment is needed. This will create eco friendly products with decomposing
nature, recycling of waste material, proper maintenance of equipments, reducing the emission of green
house gases and energy utilization. Green management reveals that the companies and people should
work together for using environmental products and compensate their needs by conserve the resources
for future generation.
In current scenario, every country are competing each other for developing their economy, this
affects normal life cycle of all living beings in the world. Some countries like Finland, Iceland, Japan,
Switzerland etc., are taking sever steps in managing the resources with green business management
practices, but most of the countries like India, China, United States etc., are struggling hard to maintain
their environment without pollution. The inability of those countries is due to various impact factors
such as demographic, industrial, technological.
Green Environment with Impact factors

In the world, developing countries are investing more for their economy growth by changing
various policies such as FDI, EXIM, Internal taxation etc. These changes make other countries
business organization to start their business with existing companies or expansion of business beyond
boundaries which provide an opportunity for increasing their wealth. The developing countries enjoy
these benefits as an employment opportunity for their people and revenue for their country. In a
country like India, population is a source which attracts most of companies to invest and do business
continuously. The government supports foreign investment in all fields with the motto of providing
employment opportunity, availability of standardized products and increase revenue for a country.
Indian population covers maximum percentage of younger generation with well qualified knowledge
and different specialization in various fields.
The innovative products available in the market are utilized effectively and efficiently by a
customers and industries without knowing their recycling process. Each and every time product variety
are changing whereas unknowing of recycling process will result in inventory of existing product. This
inventory will not only occupy space at the same time wastage of resources is causing various problems
such as land and water pollution. For example shipping companies uses their tank for carrying
petroleum products from one place to another after delivering that product they filling half a tank of
water for sailing their ships in safety manner, again they mix that water in an ocean which will affect
the water animals and increase the level of carbonate in water. The recycling processes of all products
are not possible and the companies also not interested to find solution for it.
The government is a policy maker for each and every aspects of a economy development.
After globalization lot of international standards for environment are amended and make every country,
companies and society to follow but country like India following certain rules and regulation on
temporary basis and not implementing proper steps for continuous assessment and innovative projects
for controlling the pollution. For example, the government has amended rainwater storage system in
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each and every home in Tamilnadu for the purpose of increasing ground water level but once
government changes system all get demolished.
CONCLUSION
Green management is a step for creating green environment. The awareness of green
environment is started up already and executed some projects to control global warming, climate
changes and emission of green house gases. As the green management programmes are going on still
people and government finding difficulties to implement completely. We discuss about the impact
factors happening in realistic environment which influences us to rethink and take necessary steps to
manage the green environment. Whether natural or artificial resources are going to sustain in our
lifetime, decision is yours???
81
CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALS
Mr.R.Thirunavukkarasu, Lecturer, Mr.A.Pughazhendi, Research Scholar,
Mr.V.Arun Birla, Student, Muthayammal Engineering College, Rasipuram
INTRODUCTION:
In todays world the medical sector is finding the need to know more and more about their
current and prospective clients. The Health Care sector is now emphasizing on Customer Relationship
Management (CRM) in its daily application. CRM Health Care consists of a wide array of software
products that help healthcare organizations to maintain excellent relationships with their clients.
CRM enables the health care industry to get essential customer information and use it as
efficiently as possible. CRM thus enables the health care sector to improve patient health, increase
patient loyalty and patient retention and add new services as well. The CRM Health Care Services
include strategic planning, communication services, consulting services, CRM for physicians,
Campaign management, Database construction, predictive segmentation, and communications
strategies.
Define of CRM
Customer relationship management (CRM) is a protocol or systematic approach for serving
customers in such a manner that customer retention and profitability in marketing is ensured.
Customer relationship management (CRM) is a broadly recognized, widely-implemented

strategy for managing a companys interactions with customers, clients and sales prospects.
How can CRM helps in health care sector

CRM provides the organization with the chance to acquire and retain customer relationships. It
serves to convert almost every customer interaction into a health management opportunity. Its diverse
functionality enables employers, customers and employees to access common information. Millions of
patients or customers are being contacted daily through phone, e-mail, fax, and face-to-face
interactions. All these increase the need for an affective and well-coordinated customer approach
CRM Healthcare supports the call centre by providing customer service representatives with
essential customer information. This helps the health care sector to access critical information and
deliver value to customers. CRM solutions succeed in transforming healthcare organizations into
customer-centric efficient providers of health care. The healthcare industry has realized the importance
of quality of service. CRM industry leaders now offer customer relationship management solutions to
help healthcare organizations deal with customer service issues while delivering excellent health
services.
Implement Of CRM in Hospital

Nowadays CRM is very important for every sector especially in hospital CRM is necessary
one to be implement regarding patients because through our behavior only relation may been develop
among the customer through customer relationship management is implement in many sector to cover
customer to develop their management.
Uses of CRM in Hospital

Many hospitals are using CRM main process for cover the customer they are giving many facilities like
as
Give free counseling
Free check up for every month
Half payment for treatment
Given the crucial role played by counseling sessions in healing drug addicts in a speedy manner
it is important for you to gather as much information as possible before signing up at any of the drug
82
rehab centers. You have to remember that for a complete drug treatment counseling sessions are a
must. Therefore do enquire about the counseling facilities extended by the drug rehab center before
spend all your hard earned money. A well informed decision will save you time money as well as
effort.
Tracking health condition after treatment at regular intervals

After treatment the hospital will give regular check up to customer to satisfy their needs and
wants, Hospital will call the customer to check about their health condition and how they will enquires
their body conditions. Hospital will be take more care about customer health conditions and satisfied
their problems faced by them
Getting remainders for the date of revisit

Hospital management will keep remainders about customer who want to visit the hospital for
their regular check up and maintain their health about body for their improvement.
For this process the hospital may be maintaining some database about customer regular check-up and
hospital may sent this message through telephones, e-mail, message. So for this process hospital
keeping special data.
Blood storage centre

To achieve the objective of providing safe & quality blood to all in need wherever and
whenever required, it was felt necessary to establish storage centers which can receive tested and
processed blood and blood components from authorized centers. This facility can be used for patients
in the hospitals in the area where storage centre is located. The need for establishing such centers were:
i. Many doctors working in the first referral units and other hospitals in the rural areas, especially
those working in the vicinity of highways, constantly complained of unavailability of blood.
ii. In large cities and towns the number of blood banks has been increasing, as all hospitals small
and big were required to establish their own blood banks. This has resulted in unnecessary
proliferation of blood banks.
iii. For supplying blood to many private nursing homes, small private blood banks have
mushroomed.
iv. For proper regulation of the system and to maintain quality, it is necessary to reduce the
number of blood banks.
Location
The storage centre can be established at any hospital, government or private. It may be in a
rural or urban area.
i. Any blood bank presently collecting up to 2000 units of blood annually can be converted into a
storage centre provided it can get affiliated to a larger blood bank for regular supply of blood.
ii. The storage centre can get affiliated to any government or regional blood bank, which is
approved by State Blood Transfusion Council (SBTC) and licensed for the purpose. Private or
commercial blood banks should not be given permission to supply blood to storage centers by the
SBTC.
CONCLUSION: The customer relationship management in the hospital is implemented by giving
much training programmmes to the employees in the hospitals, providing more technologies to the
service proceedings, society awareness and maintains the very good relationship with the customers
(patients).The CRM is very successful in all aspects of business and services, especially in hospitals we
want to take much care in implementing this above said/discussed concept to get the customers and
retain the customers (patients). Customer delight is the only way/tool which helps to go towards the
implementation of Customer relationship management.
83
LUXURY MARKETING
Ms. M. Ramya, Ms. B. Susithra Students, Vasavi Vidhya Trust Group of Institutions
Luxury marketing involves bringing a product to market that typically targets affluent people who
can afford expensive things.
INTRODUCTION:
The concept of luxury has been present in various forms since the beginning of civilization. Its
role was just as important in ancient western and eastern empires as it is in modern societies. With the
clear differences between social classes in earlier civilizations, the consumption of luxury was limited
to the elite classes. It also meant the definition of luxury was fairly clear. Whatever the poor cannot
have and the elite can was identified as luxury. With increasing democratization several new product
categories were created within the luxury market which were aptly called accessible luxury or mass
luxury. This kind of luxury specifically targeted the middle class (or what is sometimes termed as
aspiring class). As luxury penetrated into the masses, defining luxury has become difficult.
In contemporary marketing usage, Prof. Bernard Dubois defines luxury as a specific (i.e.
higher-priced) tier of offer in almost any product or service category. However, despite the substantial
body of knowledge accumulated during the past decades, researchers still havent arrived on a common
definition of luxury. Many other attempts have been made to define luxury using the price-quality
dimension stating higher priced products in any category is luxury. Similarly, researchers have used the
uniqueness aspects of luxury too. Prof. Jean-Noel Kapferer takes an experiential approach and defines
luxury as items which provide extra pleasure by flattering all senses at once. Several other researchers
focus on exclusivity dimension and argue that luxury evokes a sense of belonging to a certain elite
group.
There are no differences between luxury marketing and others except who are your targeted
customers and what are their value. I highly recommend seeing some marketing tactic, which famous
perfume companies did. In a word, it is a pure marketing product, which has 30cent production cost
and 100 times profit pargin ratio. It will the best example for luxury marketing, selling your cheap
products to high income customers by convincing that your products are well matched with their value.
Luxury marketing in India:

Glyn Atwal, ESC Rennes School of Business, and Shaziya Khan, JWT Mumbai, examine how
luxury brands can best maximise the Indian luxury rupee. PARADISE FOR ANYBODY wanting to
stay en vogue is the shopping arcade at the Taj Mahal Palace and Towers Hotel in Mumbai. Being at
the cutting edge of fashion comes at a price whether in London, Paris or Mumbai.
According to Ledbury Research, the global luxury goods market in 2006 was worth 75 billion, with
annual sales growth in double figures. India has been identified as an important source of this growth
and is likely to growth at an annual rate of 28% in the next three years.
market.
Luxury accessibility:
The world at your doorstep Luxury brands are now following the Indian consumer, expanding
their sales operations not only in Delhi and Mumbai, but to smaller cities or metrocities such as Pune
and Hyderabad. Luxury boutiques which were traditionally confined to the secure but often
inaccessible surroundings of exclusive hotels have been thrown open to the masses thanks to the
shopping mall boom. Market regulation although high import duties on luxury goods continue to
prevail, Indias policy of liberalization and deregulation has improved its image as an attractive
destination for foreign investment.
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The changing face of the Indian luxury consumer
The luxury market has traditionally been segmented according to two very separate and
distinct customer groups namely the affluents and the non-affluents. The transition towards a
consumer society has changed the profile of the luxury consumer. Luxury is no longer reserved for the
English-speaking elite. Priyanka,a BPO employee, loves shopping, worships brands and is typical of a
new generation of luxury consumers the because Im worth it generation.
Todays luxury shopper could be a broker, an entrepreneur, and IT specialist or a student. Maximising
the Indian luxury rupee Beyond exclusivity Beyond status
Beyond westernization Burberry meets Bollywood
The following seven guidelines set out to guide high-end brands to capture Indias growing
fascination with luxury consumption.
1. Respect.
Connect with luxury consumers as a selective target. Luxury brands need to respect this point of
difference in all interactions between the brand and the consumer.
2. Segment.
Acknowledge luxury consumer subsets. Luxury brands need to identify, differentiate and prioritise the
most profitable subsets for targeted strategies.
3. Insight.
Identify what is important to the defined target. Motivations could be based on personal and non-
personal factors.
4. Connect.
Assess which brand interactions really matter. For example, respondents cited that friends and family
are an important influence on luxury consumption.
5. Experience.
Establish emotional connectivity. Deep and meaningful relationships need to be developed in order to
win the soul of the luxury consumer.
6. Indianness.
Embrace and celebrate the Indianness brand. India has a very powerful and unique identity, and this
needs to be leveraged within a luxury brand context.
7. Consistency.
Adopt a truly holistic approach, to ensure that all brand interactions, whether advertising or customer
service, are consistent with the brand positioning. Jitnee Lambi Chadar ho Utna hee pair failana
Chahiye is an Indian proverb that means limit your spending to your earnings.
Contemporary Indian society is challenging traditional consumption patterns. The Indian consumer is
ready to embrace luxury consumption.
The basic problem in luxury marketing

One general characteristic of the way consumers are building preferences and choices was
named the law of the few, meaning the opinions of 10% of a consumer market is
influencing the buying behavior of the other 90% (Lazarsfeld 1944).
The marketing model, in which a company employs the services of an advertising agency to
create media that will influence the audience directly, is in truth a simplification.
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The problem about changed consumer attitudes from a marketing perspective is the higher
immunity of the discerning and highly sophisticated opinion leaders against traditional
marketing channels and mass media.
To get access to rich customers in general, and specifically their opinion leaders, different
channels have to be employed. This is done with pull-approaches
A company's own customers can therefore be targeted more directly than new customers,
leading to two different models of luxury marketingcustomer acquisition and customer
retention.
Modern luxury works on the openclose principle. Too much open is harmful to the brands
social function Ralph Laurens success undermined one of the foundations of his success with
professionals in Europe: sporting the polo shirt enabled them to be different from Crocodile, the other
great casual wear premium brand, from whom Ralph Lauren got his inspiration when he was starting
out in the United States. On the other hand, too much closed is too confining and leads to financial
suffocation.
In practice that meant that the brand became segregationist and forgot all societys democratic
principles. In stores, for example, it is necessary subtly to introduce a measure of social segregation:
ground floor for some, first floor for others. Armani set up specialist stores for each of his product
lines. Advertising and promotion is for all, but public relations are ultra-carefully targeted, like the
CRM for the privileged (personal invitations to meet the designer, the brand perfume nose, or the head
wine buyer).
86
GREEN MARKETING
S Bhuvaneshwari, Student, Business Administration, Vel Tech Ranga Sanku Arts College
ABSTRACT
Green marketing refers to the process of selling products or services based on the
environmental benefits. Such a product or services may be environmentally friendly itself or produced
and packaged in an environmentally friendly way. Now-a-days many of the companies started to
market the green products in consideration of the environmental benefits. Where in the customers are
also started to buy or change their buying behavior on green products. Green products are those which
are eco-friendly in nature. Some of the popular companies like TATA group of companies, Samsung,
LG, badarpur thermal power station and barauni refinery of IOC in India have started to concentrate on
marketing the green products. There are some needs for the marketers to choose green marketing such
as Social responsibility, governmental pressure, competitive pressure, and cost-reductions are some of
the reasons. Green marketing has some of the benefits like ensuring profit in long terms, saves money
and encourages the employees to feel proud and responsible to be working for an environmentally
responsible company. Green marketing also has some of the problems like it can try to increase in
selling green products among its customers, wherein it should not confuse its customers. The customers
should be given a clear knowledge about the products and the law or any standard for the products if
any by the marketers. Energy-efficient light bulbs, energy-efficient cars, paper containing post
consumer waste papers can be said as some of the examples for the green products. Finally, it is said
that that green marketing can be a solution for solving the environmental problems.
INTRODUCTION:-
Green marketing refers to the process of selling products or services based on the
environmental benefits . Such a product or services may be environmentally friendly in itself or
produced and packaged in an environmentally friendly way. In this green marketing the consumers will
view a product or services with greenness as a benefit and also base their buying decisions
accordingly . It is also known as environmental marketing or ecological marketing or eco-marketing .
Now-a-days many organizations are becoming interested to produce green products and give benefit
for their customers . The customers are also interested to buy green products as it is positive and
providing benefit for their environment . Today, companies are getting smeared for over promising
health benefits , leaving consumers confused about whats actually true . With the human wants
escalating heavily , the resources are decreasing .
EXAMPLES OF GREEN MARKETING INDIAN CONTEXT :-

1) TATA Group of companies :-
TATA Motors Ltd is setting an eco-friendly showroom using natural material for its flooring
and energy efficient lights.
The taj chain, is in the process of creating eco-rooms which have energy efficient mini bars,
organic bed linen and napkins made up of recycled papers. The room will have CFLs or Leds.
Launched a low cost water purifier made up of natural ingredients.
Developing Indica EV, an electric car that would run on polymer lithium ion batteries.
2) Recently launched Samsung solar mobile guru.
3) Battery operated LG TV.
4) Introduction of CNG in Delhi.
5) Badarpur thermal power station of NTPC in Delhi is devising ways to utilize coal-ash that has
been a major source of air and water pollution.
6) Barauni refinery of IOC is taken steps for restricting air and water pollutants.
87
NEED FOR CHOOSING GREEN MARKETING BY THE MARKETERS:-
Now-a-days most of the organization started to market green products for the consideration of
the benefits of the environment and the consumers .Some of the organization started to choose green
marketing for the following reasons like,
Social responsibility
Government pressure
Competitive pressure
Cost-reduction
PROBLEMS OF GREEN MARKETING:-

Many organizations want to turn green, as an increasing awareness among customers towards
the green product for the benefit of their environment. Where in this should make the consumer to have
a clear knowledge about their product and avoid confusion among consumers. So to ensure their
consumer confidence, the marketer should be much transparent and made clear law or standard of the
products or relating to their products.
GREEN PRODUCTS:-
With green marketing, advertises and focus on environmental benefits to sell products such as
bio-degradable diapers, energy efficient light bulbs, and environmentally safe detergents.
Examples of environmentally beneficial products and services:-
Paper containing post-consumers wastepaper.
Cereals sold without excess packaging.
Shade-grown coffee beans.
Cleaning supplies that do not harm humans or environment.
Wood harvested from sustainable forests.
Energy-efficient light bulbs.
Energy-efficient cars.
Energy from renewable sources of energy such as wind mills and solar power.
CONCLUSION:-
Green marketing is based on the premise that businesses have a responsibility to satisfy human
needs and desires while preserving the integrity of the natural environment. That this latter concern has
been ignored throughout most of recorded human history does not mean it will be unimportant in the
future. Indeed, there are significant indications that environmental issues will grow in importance over
the coming years and will require imaginative and innovative redesign and reengineering of existing
marketing efforts on the part of many businesses. Solutions to environmental problems can be
characterized into roughly three categories, ethical, legal ,and business (economical and
technological).Long-term sustainability of the planet is likely to require some rather distinct changes in
the ethical behavior of its human population. Barring a crisis, these changes will probably be a long
time coming. Legislation is a useful tool for effecting social change; it has a tremendous advantage
over moral persuasion in terms of speed and efficacy of implementation, although its results are not
always as intended. In the short term, business solutions-the enlightened self-interest of commercial
enterprises finding new ways to incorporate technology and carry on exchanges with greater concern
for heretofore un priced environmental goods and services-offer particular promise. Green marketing
and the promotion of responsible consumption are part of that solution.
88
SYNTHESIZING SYSTEM WITH CRM IN BANKING INDUSTRY
S.Muralidhar, R.Seranmadevi, S.Piradeep
Assistant Professor(s) KSR School of Management, KSR College of Technology, Tiruchengode.
ABSTRACT
Executing Customer Relationship Management (CRM) for the financial and banking industry
involves many issues, including the use of unique processes and solutions. To be successful with CRM,
financial and banking organizations must define and develop a business strategy as well as a supporting
infrastructure for that strategy. SAS Banking Intelligence Solutions can be used to complete these
tasks smoothly and efficiently even by the non-technical banking business user community.
With SAS Banking Intelligence Solutions, banking and financial industry business users can
quickly learn how to segment, cross-sell, up-sell, and retain customers. Additionally, the users can
monitor customer life-cycle trends to aid customer portfolio management with a customer equity
assets management focus.
INTRODUCTION
CRM is a business model that aligns product and sales strategies with customer requirements
and preferences. Services are then provided in a timely manner using the channels that are preferred by
the customers. Effective CRM starts by focusing on the development of business strategies and by
aligning an organization to serve customers. These business strategies are then executed using CRM
technology solutions.
The most successful business strategies are developed only after an organization learns about
customers behavior patterns and attitudes. Behavior studies show what products or services have been
purchased in the past and what products or services are currently being bought. Attitudes studies show
what customers are thinking and feeling about future buying decisions.
INCORPORATING CUSTOMER RELATIONSHIP MANAGEMENT

The effective use of CRM principles requires a three-pronged approach. First, all CRM efforts
should begin with a well-defined strategy. Second, an infrastructure must be developed to achieve
appropriate objectives. Specifically, the infrastructure should align product and sales goals to meet
customer needs, according to their preferences, in the most cost-efficient manner. Third, continuous
analytic intelligence should be used to determine and modify customer interaction.
CUSTOMER RELATIONSHIP MANAGEMENT COMPONENTS

There is an evolutionary approach to CRM that focuses heavily on customer equity assets
management. This approach begins with business strategy development. Next, a data infrastructure is
created that supports customer interactions. Then, a technology infrastructure is designed to produce
CRM results. Finally, customer communication channel strategies are created, and strategy execution
technology is used to create an on-going dialog with the customers.
BUSINESS STRATEGY DEVELOPMENT

Customer-focused organizations can benefit most from CRM. These organizations develop
business strategies that use CRM to identify the needs and the hurt points of existing customers. It is
not that customer-focused organizations ignore potential customers, but they do understand the
importance of keeping existing customers, especially during difficult economic times. For example, a
customer-focused organization might use CRM to help create incentives that produce more business
from existing customers, such as offering priority service, free delivery, and so on.
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CUSTOMER EQUITY DURING DIFFERENT ECONOMIC CYCLES
Customer relationships are an important company asset. A firm can use this customer equity
to improve its growth and profitability prospects during economic downturns and upturns. Just as a
squirrel buries nuts in anticipation of winter, a smart business will build customer equity during good
times in order to produce more business during bad times. Companies should know who their Most
Valuable Customers (MVCs) are. More resources should be used to market relevant products and
services to these MVCs while fewer resources should be expended on unprofitable customers. The goal
is to make the right offer to the right customer at the right time. Such customer knowledge can
immediately and significantly reduce total cost while, at the same time, increase sales with individual
customers. This strategy enables an organization to anticipate greater returns from its campaigns, a
reduction in costs, an increase in conversion rates, and more one-to-one communication initiatives
(which will gradually replace the organizations previous dependence on mass marketing tactics).
PRODUCT VERSUS CUSTOMER-CENTRIC BUSINESS STRATEGY

Traditionally, banking and financial organizations are organized around product-centered and
function-centered models rather than a customer-centered model. By becoming truly customer-
centered, a bank or financial organization can achieve the following benefits:
Higher returns on invested capital
More profitable customers
Lower capital costs (due to the consistency of financial results that comes from those long-term,
carefully managed customer relationships)
Larger investment opportunities (due to their understanding of customer finances and unmet needs).
CHALLENGES TO IMPLEMENTING CUSTOMER EQUITY ASSET MANAGEMENT

The following key challenges face those that try to implement customer equity asset management:
Limited Scope - Many existing CIS tools are very limited in scope, and do not support customer
equity management.
Complex Technology - Technology solutions sold by vendors have become very complex to use,
expensive to maintain, and contain irrelevant information for data mining.
No Pertinent Data - Most of the existing data warehouses lack information on recency, frequency,
and monetary values. They also offer information that is insufficient for supporting predictive modeling
and predictive scoring.
Extended Time to Market - The addition of new capabilities to existing data warehouses is cost
prohibitive and takes a long time to bring into production stage capabilities (or even to catch up with
the fast-changing dynamic nature of the market place).
SAS BANKING INTELLIGENCE SOLUTIONS: AN INNOVATIVE SOLUTIONS SUITE

SAS has developed SAS Banking Intelligence Solutions, an innovative solution suite that can
be used to efficiently manage customer equity assets.
ABOUT THE SAS BANKING INTELLIGENCE SOLUTIONS SUITE

The SAS Banking Intelligence Solutions suite provides the industry-specific data
management, analytics, and reporting capabilities needed to transform organizational data into
actionable intelligence about customers, risk, and operations. The customer analytics capabilities of the
solutions optimize the profitability and retention of valued customer relationships. Based on open,
extensible banking data architecture, SAS software enables banks and financial organizations to
maximize the effectiveness of:
Customer segmentation
Cross-selling and up-selling
Customer retention
Marketing automation.
SAS software enables managers to analyze data from virtually any source to develop a deep
understanding of customer behavior, propensities, and profitability. Organizations can identify their
90
best customers, implement and measure strategies to retain them, cross-sell and up-sell to them, and
make the most effective use of all available assets and channels.
SAS Cross SAS SAS

Selling Segmentati Retention
SAS
Marketing
Figure 1 Customer Analytics Components Interactions
CONCLUSION
CRM technology vendors have oversold the banking and financial industries with solutions.
Unfortunately, these industries have quickly learned that effective CRM requires more than just a
software application; it requires a business strategy. That business strategy should
focus on customer equity assets

enable organizational structures to support a customer-centered business model (as well as a product
centered or function-centered model)
provide a mechanism to develop data that supports the customer-centered model
incorporate a technology infrastructure that optimizes customer relationships.
The SAS Banking Intelligence Solutions can help organizations achieve an appropriate business
strategy. This suite of SAS software enables organizations to develop a deeper understanding of their
MVCs (at a group level or at an individual level) through data mining. By understanding MVCs better,
the organization can determine when it is best to use product-centered, function-centered, or customer-
centered approaches to achieve and sustain business. This same customer information can be used to
further develop customer-centered programs and align business channels and human resources to
support such programs.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks
of SAS Institute Inc. in the USA and other countries. indicates USA registration. Other brand and
product names are trademarks of their respective companies.
91
DYNAMIC SCENARIO OF CUSTOMER RELATIONSHIP
MANAGEMENT IN RETAILING
Dr. P. Shyamala M.B.A., M.Phil., Ph.D., Asst. Professor, Dept. of IT & M,
Fatima College, Madurai 625018.
ABSTRACT
CRM (Customer Relationship Management) is an integrated approach to identifying,
acquiring, retaining and delighting customers. CRM is very important for the survival of companies in
todays competitive environment. For a long time, marketers implemented their 4Ps strategy to attract
and satisfy their target customers. But post-liberalization, the highly competitive and dynamic business
environment has forced the businesses to think not only to attract but also to retain their customers,
especially profitable ones. This approach of businesses to build, and maintain one-to-one life-long
relationship with their large number of customers has led to the emergence of a new term CRM, which
stands for Customer Relationship Management. CRM helps organizations maximize the value of
every customer interaction and drive superior corporate performance. The challenge is to make it easy
for customers to do business with the organization any way they want at any time, through any channel,
in any language or currency and from any country and to make customers feel that they are dealing
with a single, unified organization that recognizes them at every touch point. In fact, the generally
accepted purpose of CRM is to enable organization to better manage their customers. With the passage
of time, the characteristics and the number of activities in retailing as well as approaches to manage
customer relationship in retail sector have changed across the globe, including India. CRM has
emerged as the latest buzzword in retailing, especially in organized retail sector, and an important tool
to enhance retailer performance.
INTRODUCTION
Retailers have bought into the CRM concept, but they're not fully implementing their CRM
systems. Those who take advantage of customer data collection and analytics, Internet-based customer
engagement tools, and the use of technologies to measure the effectiveness of marketing, will be ahead
of the game -- as will the technology vendors who serve the retail market. For a long time, marketers
implemented their 4Ps strategy to attract and satisfy their target customers. But post-liberalization, the
highly competitive and dynamic business environment has forced the businesses to think not only to
attract but also to retain their customers, especially profitable ones. This approach of businesses to
build, and maintain one-to-one life-long relationship with their large number of customers has led to
the emergence of a new term CRM, which stands for Customer Relationship Management. This
change in perspective is also supported by research findings that it costs up to 6-8 times more to attract
a new customer than to retain an existing customer (Gruen, 1997). Moreover, studies have shown that a
small proportion of the customer base (20% or less) accounts for more than 70-80% of firm's revenues
and profits.
CRM IN RETAILING
Levy and Weitz, authors of "Retailing Management", define CRM as, "A business philosophy
and set of strategies, programs, and systems that focuses on identifying and building loyalty with a
retailer's profitable customers." It is based on the business philosophy that all customers are not
profitable in the same way and retailers' can increase their profitability by building relationships with
their better customers. The goal is to develop a base of loyal customers who patronize the retailer
frequently.
CRM is an iterative process that turns customer data into customer loyalty through four
sequential activities shown in the CRM Model
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IMPLEMENTATION OF CRM
CRM for Retail must be extremely suited to perform properly since retail selling has a
membership comprising many different formats and channels, with a multitude of unique relationships
that make up 'operations'. CRM for Retail has been built from the ground up to include features needed
for retailing. Retailing ranges from small, sole enterprise operations to large chain stores and includes
everything in between, department stores, specialty stores and services, discount, catalog, Internet,
independent, restaurants and grocery stores. Retailing depends on partner networks to deliver goods
and services to their customers.
Services are available to consumers from a variety of sources be it a store, kiosk, the Internet,
or catalog. The retailer either manufactures their own product, or maintains a relationship with various
suppliers in order to keep an inventory of goods on hand for their customers. The Consumer Goods
Industry sees the Retail Industry as a key part of their distribution chain and both parties work together
to exchange information and insight on sourcing, marketing and sales opportunities.
RETAIL CRM - A MIXED SHOPPING BAG

There are a relatively small number of retail leaders who have a fully implemented a CRM
program. Most of the others still strongly embrace CRM, but they have failed to maximize the
potential. Some use a rewards or a loyalty program, Others use call centers to help customers solve
problems. But only a few have a fully integrated approach to CRM. Mainly, they put in a program on
an ad hoc basis to address pain points as they emerge." Some retailers have a fully implemented
conventional CRM program and have adapted it to new developments such as social networking.
Others are comfortable with a traditional program but haven't yet integrated new media and channels.
Still others are at various levels of using bits and pieces of conventional CRM programs. While there
may be degrees of implementation among retailers in using CRM, it appears that few retailers need to
be convinced of the value of using such programs.
RETAIL ACTIVITY AND CRM IN RETAILING ARE LISTED AS FOLLOWS:
MARKETING AND ANALYSIS

* Improve brand image
* Increase customer loyalty
* Deliver value-added services
* Align marketing campaigns with target audience
* Personalize campaigns
* Deliver on any communications channel
* Measure, monitor and refine marketing activities based on campaign performance
BUSINESS ANALYSIS & PLANNING

* Develop and refine marketing and sales strategies
* Use customer analysis tools to profile and understand preferences and buying patterns
* Understand product revenue and profitability relationships
MEASUREMENT & REPORTING

* Measure, manage and track campaign successes
* Assess response rates, revenues, return on investment
SALES
* Enable commission based representatives to collaborate across markets, time zones, etc.
* Representatives can manage high value customers
* Representatives have access to customer communications, and can personalize contacts
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RETAIL SERVICES
* Retailers can share information across stores and districts * Manage sales in the pipeline *
Provide after sales service and support
E-SERVICES
* Online sales services and information capture
* Online advice, access to catalogs, price configurations for maximizing sales
opportunities
* Offer self serve options with multi channel support options available at any time
PARTNER RELATIONSHIPS
o * Manage vendors and franchise stores/service providers
o * Manage virtual sales and services
o * Offer self serve options to channel partners to configure, price and order Manage co-
marketing and co-branding campaigns
EMPLOYEE RELATIONSHIP MANAGEMENT

o * Manage employee life cycle
o * Retain training and performance management
o * Share company policy, human resources information
o * Product and service supports for employees
CONCLUSION
The Retail Industry has seen an unprecedented shift in strategy from Product-Centric to
Consumer-Centric over the last ten years. It has become imperative to know more about customers for
better targeting Merchandise, Price and Promotions, and Shelf Management within the store, in order to
attract more customers and sales. Hence, CRM solutions are becoming increasingly important. The
aim of CRM implementation was to ensure three principlesavailability, reliability and scalability.
This is to conclude that the organized retailing in India is progressing towards a tough competitive
environment where only those retailers would survive who can understand their customers and develop
a strong bond with them by developing and implementing appropriate CRM strategies and programs
effectively. In the time to come, CRM is going to be the most dominant marketing tool to enhance the
overall retailer performance.
94
AN EMPIRICAL INVESTIGATION ON IMPACT OF SUPPLIER-SELECTION,
SUPPLY EFFORT MANAGEMENT, LOGISTICS CAPABILITIES AND SUPPLY
CHAIN MANAGEMENT STRATEGIES ON FIRM PERFORMANCE
Mrs.M.Meena, Asst.Prof., Michael institute of Management, Madurai,
Mr.D.M.Sezhiyan, Asst.Prof., National Institute of Technology, Trichy,
ABSTRACT
This research examines the direction of relationship among the functions on supplier-
selection, supply effort management, logistics capabilities on supply chain management strategies and
firm performance as well. The various aspects related to study variables which have been addressed in
the previous literature were probed and subsequently a measurement framework was initially
developed and pragmatically proved the framework through a measurement model. Subsequently, a
concept model was developed and seven hypotheses were formulated. A nationwide survey among the
supply chain professionals within manufacturing firms was undertaken in India. The concept model
was tested using regression analyses. The supply chain management strategy was regressed against
supplier-selection, supply effort management and logistics capabilities. Later, firm performance was
regressed against supplier-selection, supply effort management, logistics capabilities and supply chain
management strategies. The results indicate that the predictive variable has positive and significant
effect on supply chain management strategy and firm performance as well and they do not have
multicollinearity effects among them.
Keywords: firm performance, logistics capability, measurement model, supplier-selection, supply
chain strategy
1. Introduction
The supply chain management strategies have become a contemporary component of a firms
strategy. The success of a firm depends upon its SCM practices and its related strategy (Choi &
Hartley, 1996). The globalization of business has had a tremendous impact on the way companies
operate and thus it requires the firms to (i) integrate its partner within a supply chain context (Cooper &
Ellram, 1993), (ii) integrate the global manufacturing with logistics capabilities (Bowersox.D.J &
Closs.D.J, 1996) (iii) expand its supply chain management strategy (SCMS) and philosophy from its
traditional internally focused strategies to modern common goal of efficiency, speed and end customer
satisfaction (Harwick & Tom, 1997). Thus, this study pays attention to the basic question of whether
the SCM practices and logistics capabilities lead to an improvement in SCM strategies, which, in turn,
results in an improvement of the firms performance. As our objective is to answer this critical
question, this research takes cues from the works of (Kenneth W, McGaughey, & Casey, 2006), (Cho,
Oament, & Sink, 2008) (Wisner.J.D, 2003), (Galt, 1991) (Lu & Yang, 2006).This research aims to
build a theoretical model for the firms performance in the context of supply chain management and
logistics. Data collected from a national sample of Indian manufacturers and supply chain professionals
are used for empirical investigation of the theoretical model. A review of the related literature was
undertaken to formulate the research propositions. The methodology employed in this study is then
presented. A measurement model is developed and proved with various tests of reliability and validity.
Finally, five major latent constructs were formulated, namely, supply effort management, supplier-
selection, logistics capabilities, supply chain management strategies and firm performance. The factor
scores of these latent variables were used for further analysis.
2. Literature Review and Research Proposition

H1: Supply effort management activities are positively associated to supply chain management
strategies.
H2: Supply effort management activities are positively associated to the firms performance.
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Table 1. Summary of literature review on supplier selection criteria

Factors Studies Key Points
Quality; Price; Delivery (Cardozo & Cagley, 1971); Buyer firms seeking to work proactively
(Forker, Mendez, & Hershauer, with their supplier by sharing with them
2006); (Hartley & Choi, 1996); their knowledge, skills, and experience so
(Krause & Ellram, 1997); (Shin, as to assist their suppliers to reduce costs
Collier, & Wilson, 2000); whilst benefitting in turn through
(Tracey & Vonderembse, 2000); improved delivery performance and
(Wagner, Ettenson, & Parrish, higher quality products that are
1989). particularly goods delivered further
downstream in the supply chain
Quality; Price; Delivery; (Bender, Brown, Isaac, & In-addition to the requirements for
Production facilities and Shapiro, 1985); (Hahn, Pinto, & (Quality, Price and Delivery), herein the
capacities Bragg, "Just-In-Time vender Production facilities and capacity
Production and Purchasing, is taken in account for the process of
1983); (Treleven, 1987) Supplier-selection. This is largely due to
the use of computerized vendor selection
systems.
Quality; Price; Delivery; (Mazurak, Rao, & Scotton, In-addition to the requirements for
Technical capacity 1985) (Quality, Price and Delivery), herein the
(Wind & Robinson, 1968); vender technical abilities are considered
(Yigin, Takin, Cedmoglu, & during the process of Supplier-selection.
Topal, 2007)
Quality; Price; Delivery; (Hahn, Kim, & Kim, 1986); Herein Technical capacity and Production
Technical capacity; (Sheth, 1973); (Wind & facilities and capacities in-addtion to the
Production facilities and Robinson, requirements for (Quality, Price and
capacities 1968)(Vijayaraghavan & Raju, Delivery), herein the vender technical
2008) abilities are considered during the process
of Supplier-selection.
Quality; Price; Delivery; (Dempsey W. , 1978); (Dickson, In-addition to the requirements for
Technical capacity; 1966); (Lamberson, Diederich, (Quality; Price; Delivery; Technical
Financial position; & Wuori, 1976) capacity; Production facilities and
Production facilities and capacities vendor financial position, and
capacities; Management Vendor Management and Organization
and Organization. may act as decisive criteria during the
process of Supplier-selection.
Table 3. Results of measurement model and Reliability alpha

Indicator Variables and their underlying Factor t- Error
R2 Reliability Q
factor Estimate Value term
Supplier Selection .9356
SS 1: Giving priority on Quality aspect 1.26 17.75 0.95 0.63
SS 2: Adhering the timely Delivery 1.34 20.12 0.64 0.74
SS 3: Deciding on Production facilities and
1.35 20.63 0.58 0.76
capacities
SS 4: Decision related to Pricing policy 1.29 19.73 0.65 0.72
SS 5: Strength of Financial position of the firm 1.24 18.36 0.80 0.66
SS 6: Possession of Technical capacity of the
1.22 18.40 0.78 0.66
firm
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SS 7: Background history of Management and
1.17 16.92 0.96 0.59
Organization
Firm Performance .9081
FP 1: Return on Investment 1.26 19.28 0.89 0.64
FP 2: Return on assets 1.34 22.03 0.47 0.70
FP 3: Return on sales 1.34 21.90 0.49 0.79
FP 4: Overall quality of the product 0.19 2.92 2.15 0.017
FP 5: Overall growth and competitive position
1.31 19.71 0.86 0.067
of the firm
FP 6: Customer satisfaction 1.91 14.35 1.82 0.31
FP 7: Delivery Performance 0.05 1.64* 2.32 0.001
FP 8: Network performance 1.08 16.60 1.31 0.47
FP 9: Flexibility of operation and performance 1.02 16.60 1.38 0.43
FP 10: Firm business model 0.39 9.56 2.04 0.070
FP 11: Ability of the firm to adopt to new
0.85 14.65 1.42 0.33
situations
FP 12: Corporate governance 0.30 8.18 2.13 0.041
FP 13: Employee satisfaction 0.04 1.21* 2.48 0.0057
Supply Effort Management .8105
SEM 1: Supplier long term relationship (x11) 0.69 9.40 1.71 0.22
SEM 2: Supplier Involvement (x12) 0.94 13.51 1.31 0.41
SEM 3: Selection of quality suppliers (x13) 1.07 14.91 1.26 0.47
SEM 4: Leaning supplier base (x14) 1.33 22.26 0.36 0.85
SEM 5: Communication (x15) 1.02 14.24 1.31 0.44
Logistics Capabilities (R2) .8998
LC 1: Managing pre and post sales services
1.29 18.87 0.95 0.62
(x21)
LC 2: Coverage of distribution network (x22) 1.33 21.70 0.49 0.78
LC 3: Delivery speed and reliability (x23) 1.33 21.47 0.53 0.77
LC 4: Low total cost distribution (x24) 1.30 19.28 0.89 0.65
Supply Chain Management Strategies (S1) .8006
SCMS 1: New ways to integrate SCM
0.39 6.13 2.49 0.57
activities (y31)
SCMS 2: Share customers future needs (y32) 1.25 18.03 1.06 0.60
SCMS 3: Creating trust in supply chain (y33) 1.34 20.43 0.67 0.73
SCMS 4: Beyond SC of suppliers (y34) 1.30 20.01 0.71 0.71
Table 2. Fit Indices of Measurement Model
Index Suggested Value Fit Indices of CFA
Model
RMSEA e0.10 0.12*
Standard root mean square residual e0.10 0.058
Normed Fit Index (NFI) f0.90 0.94
Non-normed fit index (NNFI) f0.90 0.95
Comparative fit index (CFI) f0.90 0.95
Root Mean Square Residual (RMR) e0.08 0.14*
* indicated the model is fit at accepted level
97
Table 4. Regression results and Results of Explicit hypotheses
Hypothesis Predictor Dependent a b SE b 8 P- Hypothesis
Variable Variable Intercept Value Support
Value
H1 SCMS a SEM -4.197 .624 .042 .622 .000* YES
H2 FP b SEM -2.308 .769 .038 .735 .000* YES
H3 SCMS c SS -5.255 .716 .037 .714 .000* YES
H4 FP d SS -9.802 .869 .029 .856 .000* YES
H5 SCMS e LC -8.715 .658 .038 .677 .000* YES
H6 FP f LC -4.105 .926 .022 .913 .000* YES
H7 FP g SCMS -5.793 .796 .036 .763 .000* YES
a 2
R = .387, bR2 = .540, cR2 = .510, dR2 = .732, eR2 = .459, fR2 = .833, gR2 = .58, P B
0.05*, n=358
References
Ahire, S., Golhar, D., & Waller, M. (1996). Development and Validation of TQM implementation
constructs. Decision Sciences , 27 (1), 23-56.
Aiken, L., & West, S. (1991). Multiple regression: Testing and Interpreting interactions. Newbury
Park: Sage.
98
INTERACTIVE MARKETING AND SOCIAL MEDIA
Mrs P. ANNAPURANI ,M.A, M.Phil, (Ph.D), Lecturer, Vel Tech Engineering College, Vel Tech
Road, Chennai .
Mrs. P. R. JAEL PERSIS, M.A., M.Phil, B.Ed.,Lecturer, Vel Tech High Tech Dr. RR
and Dr. SR Engineering college
ABSTRACT
English is the key to businesses and communication is the key to profit and it is the
international language for corporate meetings.
From Social Networks to online editorials or simply getting ourself around, English language,
is basically heading towards a constant dead end street. English has become the international key to
countries, has transcended cultures and influenced everything from fashion to traditions to lifestyles.
The Social Media Marketing (SMM) is surely the next big thing. SMM is a form of Internet or Online
Marketing. It aims to achieve its branding and marketing goals through various social media networks,
social web applications and through various other sources like 3D virtual worlds like second life, active
worlds, etc.
Social Media has become a platform that is easily accessible to anyone with internet access.
Increased communication for organizations fosters brand awareness and often, improved customer
service. Additionally, social media serves as a relatively inexpensive platform for organizations to
implement marketing campaigns. With emergence of channels like Twitter, the barrier to entry in social
media is greatly reduced.
The Social Media Marketing (SMM) is surely the next big thing. SMM is a form of Internet or
Online Marketing. It aims to achieve its branding and marketing goals through various social media
networks, social web applications and through various other sources like 3D virtual worlds like second
life, active worlds, etc.
Research shows that 80% of the amount of Internet web content is in the English language and
that content relating to business written in the English language largely comprises this figure. It goes
without saying that having a good grasp of business information, data, or terminologies in the English
language is very important to have a good understanding of the wealth of business information
available on the Internet.
Introduction
English is the key to businesses and communication is the key to profit and it is the
international language for corporate meetings. From Social Networks to online editorials or simply
getting ourself around, English language, is basically heading towards a constant dead end street.
English has become the international key to countries, has transcended cultures and influenced
everything from fashion to traditions to lifestyles.
Social media marketing is an addition to personal, small business, corporate, and non-profit
organizations integrated marketing communications plans. Andreas Kaplan and Michael Haenlein
define social media as "a group of Internet-based applications that build on the ideological and
technological foundations and that allow the creation and exchange of user -generated content.
Integrated marketing communications is a multifaceted, orchestrated marketing and advertising
practice organizations follow to connect with their target markets. Integrated marketing
communications coordinates promotional elements: advertising, personal selling, public relations,
publicity, direct marketing and sales promotion. Increasingly, viral marketing campaigns are also
grouped into integrated marketing communications. In the traditional marketing communications
model, the content, frequency, timing, and medium of communications by the organization is in
99
collaboration with an external agent, i.e. advertising agencies, marketing research firms and public
relations firms. However, the growth of social media has impacted the way organizations communicate.
With the emergence of Web 2.0, the internet provides a set of tools that allow people to build social
and business connections, share information and collaborate on projects online.
Social media marketing programs usually center on efforts to create content that attracts
attention and encourages readers to share it with their social networks. A corporate message spreads
from user to user and presumably resonates because it is coming from a trusted, third-party source, as
opposed to the brand or company itself.
Social Media has become a platform that is easily accessible to anyone with internet access.
Increased communication for organizations fosters brand awareness and often, improved customer
service. Additionally, social media serves as a relatively inexpensive platform for organizations to
implement marketing campaigns. With emergence of channels like Twitter, the barrier to entry in social
media is greatly reduced.
The Social Media Marketing (SMM) is surely the next big thing. SMM is a form of Internet or
Online Marketing. It aims to achieve its branding and marketing goals through various social media
networks, social web applications and through various other sources like 3D virtual worlds like second
life, active worlds, etc.
The reasons why one should also opt for SMM are as follows:
o SMM plays an important role of creating brand awareness, increasing visibility, encouraging
feedback, online reputation management and also to sell a product or service.
o With the introduction of social media consumers started opposing the passive way of
receiving communication from marketers, they have now become contributors contributing to
brand messaging. Apart from consumers point of view every company has different products
with unique features to offer its consumers hence their marketing campaign also differs
English language the possibilities of acquiring valuable information are limited. Whether it be
for school, for medical research, for job inquiries or basic web surfing, its extremely important to have
control in the linguistic process. Tourism is one the most important factors English has revolutionized.
Wherever you go, theres always something written in English. Even if you visit some Caribbean island
people havent heard about, its beneficial to learn English before you head out because itll be the best
language youll communicate in. From brochures to advertisements, English had transformed the way
people connect and travel.
In todays economy its almost a requirement to dominate the terminology .Upgrade your
possibilities and income by feeding your vocabulary a new integration of words. Start today! Be a part
of the enlightenment of learning a whole new world of expressions and unlimited communication in
English.
Research has shown that for the most part, employees are very good at what they do. That's
why they are hired, trained, retrained, and promoted. They are all "subject matter" experts.Their
problems occur when they attempt to communicate their subject to others. They have had extensive
training and experience in performing their jobs, but very little training in effectively presenting their
ideas to others.
The individuals and corporate should effectively present their ideas in a clear, concise,
convincing manner.
Around the world, there is an estimated 1 Billion people learning English. Many factors point
to the reason why learning English has seen exponential growth in recent years, but it all boils down to
100
the English language being the "global language" of business, politics, international relations, culture,
and entertainment for so many countries worldwide. And that is just an understatement as in fact, while
English is not an official language in many countries worldwide, it is the language most often taught as
a foreign or second language.
Tips for Correspondence in Business English

Regular Way of Communicating Business Communication
In my letter to Mr Shah. In my written communication to Mr Shah.
She spoke to me in detail. We had a meeting.
I liked her advice. I appreciate her analysis.
He has told he will come at 11 am. He is scheduled to arrive at 11 am.
Three people had come to inquire about
There are three potential customers.
our product.
Can you speak loudly? I am unable to hear you.
Can you speak to Mr Suresh and get Please co-ordinate with Mr. Suresh and ensure that our
our PC repaired? computer is up & working
Can you tell me your phone number &
Can you help me with your phone number & email id?
email id?
Many non-native English speakers study the subject with the goal of doing businesses with
English-speaking countries, or with companies located outside the Anglo sphere but which nonetheless
use English as a shared language or lingua franca. Much of the English communication that takes place
within business circles all over the world occurs between non-native speakers. In cases such as these,
the object of the exercise is efficient and effective communication. The strict rules of grammar are in
such cases sometimes ignored, when, for example, a stressed negotiator's only goal is to reach an
agreement as quickly as possible.
101
BUYING BEHAVIOR OF CONSUMER TOWARDS KHADI(KVIC) WITH SPECIAL
REFERENCE TO MADURAI CITY
Mrs S.Rosary Arul Kavitha Asst.professorMichael Institute of Management Madurai
INTRODUCTION
Cottage Industries are important particularly in an underdeveloped economy like India. The
process of industrialization in such an economy involves the development of not only basic industries
but also small and cottage industries. With cottage industries, Khadi and Village industries play a
greater role in the development of rural economy. Khadi and village industries means, Any industry
located in a rural area, the population of which does not exceed ten thousand or such other figure which
the use of power and in which fixed capital investment in plant and machinery and land and building
per head of an artisan or a worker does not exceed fifteen thousand rupees
In India the growth rates of Khadi and Village industries in terms of employment,
production and labour productivity and output elasticity is tremendous. The employment generation in
India is significant. Majority of the labour force is employed in this sector. The employment in Khadi
and Village industries raised from 9.65 lakh persons in 1956 to 37.89 lakh persons in 1985 and 76.78
lakh persons in 2008. The increment in employment by 2008 over 1956 is 28.4 percent. During the
seventh plan period the employment in Khadi sector was 14.14 lakh persons consisting of spinners
12.07 lakh persons, weavers 1.41 lakhs and others 0.66 lakh persons.
The production value of Khadi and Village industries in India during the period 1956 to
2008 has increased substantially. The total Khadi and Village industries production value increased by
15.8 per cent between 1956 and 2008. During the year 2007-08 the production of Khadi and Village
industries was Rs.10920.43 crores out of which Khadi was Rs.461.54 crores and Village industries was
Rs.10458.89 crores.
Khadi and Village industries are less capital intensive and more employment intensive. Khadi
and Village industries can be started with less capital.
Khadi and Village industries play an important role, for achieving rural development and
balanced economic growth of various regions such as tribal, hilly, backward and inaccessible areas.
Due to their rural location, Khadi and Village industries are crucial for rural industrialization. The
gestation period in Khadi and Village industries is much less as compared to medium and large
industries. The production in khadi and Village industries starts immediately without long gestation
period.
They have been found to be of particular help to the weaker sections of the society such as
scheduled tribes, scheduled castes, women, children, old and physically handicapped in providing
employment in rural areas.
Khadi and Village industries provide employment in the off- season in rural areas. They help
many households to mitigate their problems when they have no work after the harvest is over.
The activities of Khadi and Village industries are organized with leased disturbance to
ecology and without any pollution.
REVIEW OF PREVIOUS STUDIES

J.V.Dhanaraj in his study on The production and sales aspects of the Sarvodaya Sangh soap
units at Dindugul, has made an attempt to study production and sales performance. He has also
analysed the workings of the unit.
102
H.Ramalingam in his study of Sarvodaya in Tamil Nadu, has analysed the reasons for the
slow growth of Sarvodaya and Village industries and has provided some suggestions for the
improvement of the same with reference to Tamil Nadu.
Shri.I.Udaya Bhaskara Reddy I his study on Small-Scale and Cottage Industries in Project
area of Koraput, has highlighted the development of cottage industries. In this article of KVIC in
west Bengal Shri.H.K.Ghosal, Chairman of KVIC West Bengal Board, mentions the various
constraints faced by the state in the promotion of Cottage and Village industries. C.Harichandran, in
his article on Role of KVI in Rural Development, has employed the need for village and cottage
industries for the enlistment of village industries during the various plan periods. M.P.Gurusamy, in his
article entitled Appropriate Technology for Full Employment, has suggested that our country should
evolve and adopt appropriate technology for rural development with the object of achieving full
employment.
METHODS
The study is based on secondary and primary data. Secondary data have been collected from
books, journals, newspapers and reports of Madurai District Sarvodaya Sangh. Primary data have been
collected by conducting survey among the consumers of the Sangh. The researcher has conducted a
survey to study the consumers opinions by using interview schedule. 200 respondents were selected for
the study. Convenient sampling was adopted in selecting the respondent while they were buying.
OBJECTIVES
To study the profile of Madurai District Sarvodaya Sangh and to study the sales performance
of major products over a period of 10 years in Maduria District Sarvodaya Sangh. It also analyse the
Buyers behavior towards Sarvodaya Sangh products and to analyse the level of satisfaction of
consumers towards the sales services of Madurai Sarvodaya Sangh. And to present summary of
findings and suggestions for improving satisfaction to buyers of Sarvodaya Sangh products.
ANALYSIS OF DATA
After the completion of the survey, the researcher had thoroughly verified the data.
Afterwards the data were edited and coded. After the processing, the data have been entered on master
table. For analysis, the researcher has used the manual process with the help of a calculator.
The statistical tool of chi-square test has been used in analysing the significance of
relationship between age, education, occupation, family size and Income of buyers and their
satisfaction towards the services provided by the Sangh.
Arithmetic mean and Standard deviation have been applied for measuring the level of
satisfaction of buyers into low, medium and high levels.
Percentage analysis is used for analyzing sales performance of Sarvodaya Sangh products and
also buyers behaviour towards KVIC products.
RESULTS
Respondents are classified under demographical percentage
Gender of the Respondents

Gender Number of Respondents Percentage of Respondents
Male 132 66
Female 68 34
Total 200 100
103
Age-wise Classification of Respondents
Age Number of Respondents Percentage of Respondents
Upto 20 years 26 13
20 to 40 years 63 32
40 to 60 years 74 37
Above 60 years 37 18
Total 200 100
Educational Qualification of Respondents
Educational Status Number of Respondents Percentage of Respondents

Illiterate 6 3
Elementary 21 11
Higher Secondary 49 25
Graduate 63 31
Post-graduate 38 19
Others 23 11
Total 200 100
Age of the respondents and satisfaction level chi-square test

H 0: Age does not influence the level of satisfaction of consumers.
H 1: Age influence the level of satisfaction.
Cell O E (O-E) (O-E)2 (O-E)2 E
R1C1 14 15.580 -1.580 2.4964 0.1602
R1C2 21 19.425 1.575 2.4806 0.1277
R1C3 57 59.630 -2.630 6.9169 0.1160
R2C1 77 74.370 2.630 6.9169 0.0930
R2C2 18 13.795 4.205 17.6820 1.2818
R2C3 13 17.205 -4.205 17.6820 1.0277
Total 2.8064
Educational qualification and level of satisfaction-chi-square test

H 0: There is no significant relationship between educational qualification and level of satisfaction.
H 1: There is significant relationship between educational qualification and level of satisfaction.
R1C1 10 13.30 -3.30 10.8900 0.8188
R1C2 25 21.70 3.30 10.8900 0.5018
R1C3 55 50.92 4.08 16.6464 0.3269
R2C1 79 83.08 -4.08 16.6464 0.2004
R2C2 11 11.78 -0.78 0.6084 0.0517
R2C3 20 19.22 0.78 0.6084 0.0317
Total 1.9313
Occupation and level of satisfaction chi-square test

H 0: Occupation does not influence the level of satisfaction
H 1: Occupation influences the level of satisfaction
104

R1C1 10 14.175 -4.175 17.4306 1.2297
R1C1 14 9.800 4.200 17.6400 1.8000
R3C1 11 11.025 -0.025 0.0006 0.0000
R1C2 52 54.270 -2.270 5.1529 0.0950
R2C2 34 37.520 -3.520 12.3904 0.3302
R3C2 48 42.210 5.790 33.5241 0.7942
R1C3 19 12.55 6.445 41.5380 3.3085
R2C3 8 8.680 -0.680 0.4624 0.0533
R3C3 4 9.765 -5.765 33.2352 3.4035
Total 11.0144
Family size and level of satisfaction-chi-square test

H 0: Family size does not influence the level of satisfaction of consumers.
H 1: Family size influences the level of satisfaction of consumers.
R1C1 20 21.175 -1.175 1.3806 0.0653
R1C2 15 13.825 1.175 1.3806 0.0999
R1C3 82 81.070 0.930 0.8649 0.0107
R2C1 52 52.930 -0.930 0.8649 0.0163
R2C2 19 18.755 0.245 0.600 0.0032
R2C3 12 12.245 -0.245 0.0600 0.0049
Total 0.2002
Findings:
1. Family size does not influence the level of satisfaction of sangh customer because the calculated
value is less than the table value.
2. Occupation influences the level of satisfaction of consumers
3. There is no significant relationship between educational qualification and level of the satisfaction
about the services of the sangh.
4. The age of the respondents does not influence the level of the satisfaction of sangh consumers.
CONCLUSION:
The analysis of consumer satisfaction with the personal parameters of the consumers reveals
that excepting occupation of consumers age, education, family size and monthly income of consumers
are not significantly related to consumer satisfaction.
REFERENCE
1. J.Dhanaraj 1987 The production and sales aspects of the Sarvodaya Sangh soap units at
Dindugul unpublished M.Phil dissertation, Madurai Kamaraj University.
2. H.Ramalingam 1990 Sarvodaya in Tamil Nadu unpublished M.Phil dissertation, Madurai
Kamaraj University
3. I.Udaya Bhaskara Reddy 1989 Small-Scale and cottage Industries in Project area of Koraput
unpublished Ph.D thsis, Gandhigram University, Dindigul.
4. H.K.Ghosal 1990 KVIC in west Bengal Southern Economist, Vol.No 28, pp.1-4
5. C.Harichandran 1989 Role of KVI in Rural Development Southern Economist, Vol.No 22,
pp.6-8
6. M.P.Gurusamy 2003 Appropriate Technology for Full Employment Industrial structure of
India, New Delhi, Eurasia Publication House, pp 23-27
7. Dr.Ravichandran and K.Thingalaya, Strategies for Rural Development-Some Issues Indian
Industrial Economy, New Delhi, pp50-56
8. Mr.Mahabir Prasad 2004, Minister of Small Scale Industries & Agro and Rural industries.
105
A STUDY ON CUSTOMER PREFERENCE AND SATISFACTION TOWARDS
RETAIL OUTLETS, CHENNAI
Ms.Janet Glory M C, Lecturer, Department of Management Studies, Rajalakshmi Institute of
Technology, Chennai
INTRODUCTION
Retailing is one of the largest industries. It is in a permanent state of change, and the pace of
this change has been accelerating over the last decade. From the marketing perspective, retailers are by
definition closer to the consumer than manufacturing companies (Reynolds 200 4b.p.3).Retailers
represent the culmination of marketing process and the contact point between consumers and
manufacturing products. While retailing has long set buying decisions as its highest priority and was
very focused on product assortment, it now follows a more holistic approach to management and
marketing and is seizing the opportunity to be consumer oriented ,engage in the personal contact with
the customers, gather information on customer behavior and exploit insights into consumer behavior
and preferences. What was ones a simple way of doing business is transforming into a highly
sophisticated form of management and marketing? Retail marketing consistently features more
efficient, more meaningful and more profitable marketing practices (Mulhern 1997, p.103)
OBJECTIVES
The research objectives were:
To determine the demographic profile of the retail store customers in the Chennai city.
To identify the customer preference towards the store.
To analyze the factors that influences the preference of customers.
To find out the satisfaction level of customers.
RESEARCH METHODOLOGY
Data collection method
The data has been collected through primary method of data collection (i.e.) questionnaire.
Research Design
The research design that has been followed is Descriptive Research.
Sampling Technique
The sampling technique is Simple Random Sampling.
Sample Size
The sample size is 50.
Statistical Tools Used

Cross tabs
Regression
Chi square
106
Determination of demographic profile of the customers
gender of respondents * age of respondents Cross tabulation
Count
age of respondents
18-24 25-31 32-38 39-45 46-52 53-59 Total
gender of respondents male 1 8 6 2 3 1 21
female 3 13 5 5 1 2 29
Total 4 21 11 7 4 3 50
From the above table we can see that from 50 samples, 21 respondents (42%) are male and 29
respondents (58%) are female. Majority of the respondents belongs to the age limit of 25-31 and 32-38.
From the above table we can see that, 38% of the male respondants and 44% of the female
respondants has completed their bachelors degree.2% of male respondants and 4% female respondants
has completed their masters degree.2% of male respondants and 10% of female respondants has
completed their high school.
total household income * gender of respondants Cross tabulation
Count
gender of respondants
male female Total
total household income 1l-2l 2 5 7
2l-3l 11 15 26
3l-4l 7 8 15
4l-5l 1 1 2
Total 21 29 50
From the table we can see that, 22% of male respondants and 30% of female respondants gets
the total house hold income of 2lakh-3lakh per annum.14% of male respondants and 16% of female
respondants gets the total house hold income of 3lakh to 4lakh per annum.2% of male and female
respondants gets total house hold income of 4lakh 5lakh per annum.4% of male respondants and 10%
of female respondants gets total house hold income of 1lakh to 2lakh per annum.
Identification of customer preference towards the stores

Preference based on gender
From the table we can see that, 10% of the male respondants and 8% of the female
respondants are highly satisfied and prefer to purchase the products from retail outlets.30% of male
respondants and 48% of female respondants are satisfied and prefer to purchase the products from retail
outlets.2% of male and female respondants are neutral in their preference towards retail outlet.
107
Identification of factors that influence the preference towards retail outlets
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .061 .586 .104 .918
variety of product choice .162 .169 .189 .956 .346
availability of fresh vegatables -.195 .214 -.201 -.908 .370
variety of groceries .194 .169 .257 1.145 .260
variety of household cleaning -.030 .145 -.040 -.208 .836
products
availability of new items -.059 .134 -.088 -.436 .666
quality of the products .061 .153 .086 .400 .691
price of the products -.051 .114 -.088 -.444 .660
efficiency of service .161 .116 .254 1.392 .173
friendliness of staff .083 .128 .097 .651 .519
helpfullness of staff -.083 .110 -.123 -.754 .456
hours of operation .142 .124 .194 1.149 .259
counter areas .075 .062 .191 1.211 .234
location .016 .186 .018 .087 .931

atmosphere or ambience .102 .195 .121 .523 .604
arrangement of products .328 .166 .388 1.972 .057
a. Dependent Variable: preference towards retail
From the table we can see that, the significant value high for location, variety of cleaning
products and quality of the products (0.931, 0.836, and 0.691). So these three are the factors that
influence the preference towards retail outlets.
Determination of satisfaction of customers based on age

Test Statistics
satisfaction towards
age of respondants
products
Chi-Square 20.440a 28.240b

df 2 5
Asymp. Sig. .000 .000
Ho = There is no significant difference between the age of the customer and the satisfaction towards
retail outlets.
H1 = There is significant difference between the age of the customer and the satisfaction towards retail
outlets.
If the significant value is less than 0.05 then reject the null hypothesis.
If the significant level is greater than 0.05 then accept the null hypothesis.
108
From the table we see that the significant value is 0.000 which is less than 0.05(0.000<0.05)
So reject the null hypothesis and accept the alternate hypothesis
Therefore, there is significant difference between the age of the customer and the satisfaction
towards retail outlets.
FINDINGS
From 50 samples, 21 respondants (42%) are male and 29 respondants (58%) are female.
Majority of the respondants belongs to the age limit of 25-31 and 32-38.
22% of male respondants and 30% of female respondants gets the total house hold income of
2lakh-3lakh per annum.
14% of male respondants and 16% of female respondants gets the total house hold income of
3lakh to 4lakh per annum.
2% of male and female respondants gets total house hold income of 4lakh 5lakh per annum.
4% of male respondants and 10% of female respondants gets total house hold income of 1lakh
to 2lakh per annum.
With respect to customer preference towards the stores, 30% of male respondants and 48% of
female respondants are satisfied and prefer to purchase the products from retail outlets.
Location, variety of cleaning products and quality of the products are the factors which makes
the customers to prefer retail outlets to purchase the products.
There is a difference is satisfaction level towards the retail outlets with respect to the age of
the customers.
CONCLUSION
The study was aimed at customer preference and satisfaction towards retail outlet at Chennai.
Based on the research, customers preferences towards various factors were determined. Customers are
looking for improved efficiency of service and minimize the duration of time in counter areas. The
retailers should try to fulfill the expectations of the customers. So that they can retain the customers.
REFERENCES:
BOLTON, R.; SHANKAR, V.; MONTOYA, D. (2006): Recent Trends and Emerging Practices in
Retailer Pricing, in: KRAFFT, M.; MANTRALA, M. (Eds.): Retailing in the21st Century, Berlinetal.,
and pp. 255-270.
KRAFFT, M.; MANTRALA, M. (2006): Retailinginthe21stCenturyCur Rent and Future Trend,
Berlinetal.
LEVY, M.; WEITZ, B. (2007): Retailing Management, 6th international ed. Boston etal.
ROGERS, D. (1992): A Review of Sales Forecasting Models Most Commonly Applied in Retail Site
Evaluation, in: International Journal of Retail&Distri
Bution Management, Vol. 20, No. 4, pp. 3-11.
SCHMITT, B. (1999): Experiential Marketing: How to Get Customers to Sense, Feel, Think, Act,
NewYork.
109
CONSUMERS PERCEPTION ON COMPARING QUALITY OF CELEBRITY AND
BRAND FEATURES IN ADVERTISEMENT
K.Kannan M.B.A; M.Phil, B.Satheesh Raja, Assistant Professors RVS Institute of Management
Studies P.Vijayakumar, Research Scholar, Karpagam University, Coimbatore.
ABSTRACT
Celebrities cut through advertising clutter, hold viewer attention, contribute to brand name
recognition and transfer positive qualities such as physical attractiveness and like ability to the brand.
In overall, the brand features of celebrities help me to remember the brand, creditability of the brand,
quality of the brand, advertisement of the brand and price of its products were noticed by the
consumers and there was a significant differences among the consumers perception of the consumers
about brand features as noticed by them. Since celebrities have the impetus to market the product
quickly, they have the advertisers running behind them for various benefits including brand credibility,
creating interest; thereby, creating a win- win situation.
INTRODUCTION
Advertisements of all varieties pop up everywhere on streets, in stores and restaurants, and on
public transportation. Each of these advertisements attempts to steal at least a fraction of an
unsuspecting person's time to inform him or her of the amazing and different attributes of the product at
hand. Because of the constant media saturation that most people experience daily, they eventually
become numb to standard advertising. The challenge of the advertiser is to find a hook that will hold
the subject's attention and keep them from changing the channel or turning the page. One well-used
approach at differentiating advertisements is the use of celebrity endorsements. Using celebrity fame,
bought or contrived, has certain advantages and risks. A celebrity-product association can capture a
viewer's attention, increase the public's awareness of the product, and cause consumers to purchase the
product endorsed. Celebrities cut through advertising clutter, hold viewer attention, contribute to
brand name recognition and transfer positive qualities such as physical attractiveness and like ability to
the brand (Edward and Bose, 1998; Stephan and Fredrick, 2005). The source credibility model suggests
message effectiveness depends on the endorsers perceived credibility. Celebrity combines both
expertise and trustworthiness. Through the process of internalization, credible sources influence
consumer beliefs, attitudes and or behaviour (Stony, 1990; Orion, 1991). The source of attractiveness
model proposes that message effectiveness depends on the similarity between source and receiver,
source likeability and source familiarity through repeated media exposure. Information from an
attractive source is accepted because of the consumers desire to identify with that source (Rogan,
1999). In the product match-up model, effective advertisement results when the messages conveyed by
celebrity image are compatible with product image (Ruddick, 2003). With this background, the present
study was attempted to study the comparing of qualities of the celebrity with advertisement, brand
image and consumers perception and relationship between matching qualities of celebrity and
advertisement in Coimbatore city of Tamil Nadu.
The Coimbatore city is purposively selected for the present study since it is the Manchester of
Tamil Nadu. About 150 respondents were selected by adopting simple random techniques and were
interviewed. Information was collected by interviewing the respondents by using a pre-tested, well-
structured interview schedule. The data and information collected pertains to the year 2009-10. The
descriptive statistics, frequency analysis and mean score and ranking were carried out.
SPEARMANS RANK ORDER CORRELATION

In order to identify the relationship between matching qualities of celebrities and
advertisement in celebrity endorsement, the Spearmans rank order correlation was worked out and the
formula is:
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r = 1 (6Ud2)/n (n2-1)
Where, d = Difference in Ranks n = Number of Pairs.
CHI-SQUARE TEST
In order to study the differences between brand features and perception of the consumers, the
Chi-Square Test has been employed and the formula is:
W2 =U (-E)2/E)
Where
O = Observed Frequency E = Expected Frequency
d.f = Degree of Freedom = (n-1) W2 = Chi Square
RESULTS AND DISCUSSION

The results indicated that the majority of the consumers (64.16 per cent) were the age group of
21-30 years followed by less than 20 years and 31-40 Years. About 45.80per cent of were married
while 79 per cent were males. The majority of consumers (49.17 per cent) were postgraduates and
about 30 per cent of consumers were under-graduates. The monthly income of consumers were ranging
from Rs. 0-5000(85 per cent) followed by Rs.5000-10000(8.34 percent). About 70.83 per cent of the
consumers have a family size of 4-6 members followed by less than 3 members (25.00 percent).
The comparing qualities of the celebrity with advertisement were analyzed and the perceptions of the
consumers are presented in TABLE:1
Attributes Mean Order of

Ranking Importance
Similarity 0.92 5
Identity 1.20 2
Worthy 1.10 3
Brand 0.98 4
Confident 1.34 1
Scandal 0.90 9
Positive Image 0.87 7
Attractiveness 0.86 8
Advertising 0.84 10
Product match 0.82 9
Table-2 The results showed that the Pearson Chi-Square value was 0.0196 and the likelihood ratio was
193.3 indicating that the test statistic was significant at five per cent level of significance thus, there
was a significant differences among the consumers perception of the consumers about brand features
as noticed by them.
CONCLUSION
In overall, the brand features of celebrities help me to remember the brand, creditability of the
brand, quality of the brand, advertisement of the brand and price of its products were noticed by the
consumers and there was a significant differences among the consumers perception of the consumers
about brand features as noticed by them. The consumer looks for a variety of aspects from the
endorsement like the credibility and likeability of the endorser. The company can heighten the
advertising content because that grabs a special place in the mind space of the consumer. Since
celebrities have the impetus to market the product quickly, they have the advertisers running behind
them for various benefits including brand credibility, creating interest; thereby, creating a win-win
situation.
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REFERENCES
Charbonneau, J. and Garland, R. (2005), Talent, Looks or Brains New Zealand Advertising
Practitioners' views on Celebrity and Athlete Endorsers, Marketing Bulletin, 16: pp. 1- 10.
Dawra, Jogrook and Katyal, (2006), "Brand Celebrity Conformance", The ICFAI Journal of
Brand Management, 3(2): p. 6.
Dyson, A. and Turco, D (1998), The State of Celebrity Endorsement in Sport, The Cyber Journal
of Sport Marketing, 1 (2): pp. 34 - 35.
Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research,
15: pp. 291-314.
Jagdish, A. and Wagner, K.A. (1995), The Economic Worth of Celebrity Endorsers: An Event
Study Analysis, Journal of Marketing, 56(3):pp. 56-62.
Tripp, C., Jensen, T.D., Carlson, L(1994). "The Effects of Multiple Product Endorsements by
Celebrities on Consumers' Attitudes and Intentions". Journal of Consumer Research, 20:pp.535-547.
Walker, M.; Langmeyer, L. (1991), Celebrity Endorser: Do You Get What You Pay For?. The
Journal of Services Marketing, 6: pp.35-42.
Harry Deane Wolfe (2007) Techniques of appraising brand preference And brand consciousness by
consumer interviewing, Journal of Marketing Management, Vol.6, No.4, pp.81-87.
Jeffrey D. Ford, Elwood A. Ellis (2008) A reexamination of group Influence on members brand
preference, Journal of Marketing Research, Vol.17, No.1, pp.125-132.
Kenneth E. Miller and James L. Ginter (2009) An investigation of Situational variation in brand
preference behaviour and attitude, Journal of Marketing Research, Vol.16,No.1, pp.111- 123.
112
COMPETITIVE ADVANTAGE THROUGH CORPORATE SOCIAL
RESPONSIBILITY PRACTICES
Dr. S. Jaya Bharathi, Ms. R. Ananthi and Mr. Y. Babu Vinothkumar Faculty Members
Department of Management Studies and Research,
Coimbatore Institute of Engineering and Technology
"The whole of that wealth is held in trust for the people and used exclusively for their benefit. The
cycle is thus complete; what came from the people has gone back to the people many times over."
J R D Tata
ABSTRACT
According to the article, Components of Corporate Social Responsibility, the concept of CSR
goes beyond charity or philanthropy and requires the company to act beyond its legal obligations and to
integrate social, environmental and ethical concerns into its business process. However, in practice,
companies fail to follow ethical practices, and this ultimately affects the society. These companies
adopt a green washing effort through philanthropic and charitable initiatives. In some other cases,
companies contribute more towards social welfare and employees welfare but face opposition from
shareholders as the shareholders think that their wealth in the company is being unnecessarily used for
social welfare. According to the European Commission, CSR is a concept whereby companies
integrate social and environmental concerns in their business operations and in their interaction with
their stakeholders on a voluntary basis. Hence, companys CSR should focus on multi-stakeholder
approach.
INTRODUCTION
The essence of socially responsible business behavior is the company should strive to balance
the benefits of strategic actions to benefit shareholders against any possible adverse impacts on other
stakeholders (employees, suppliers, customers, local communities, and society at large) and, further, to
proactively mitigate any harmful effects on the environment that its actions and business may have.
Social responsibility includes corporate philanthropy and actions to earn the trust and respect of
stakeholders for the firms efforts to improve the general well-being of customers employees, local
communities, society at large, and the environment.
Efforts to employ an ethical strategy and observe ethical principles in operating the business.
Making charitable contributions, donating money and the time of company personnel to
community service endeavors, supporting various worthy organizational causes, and reaching out to
make a difference in the lives of the disadvantaged.
Actions to product or enhance the environment and in particular, to minimize or eliminate any
adverse impact on the environment stemming from the companys own business.
Actions to create a work environment that enhances the quality of life for employees and
makes the company a great place to work.
- Integrating core values such as honesty, trust, respect, and fairness into its business policies
- Adhering to internal rules and regulations
Workplace & Labour relations:
Following fair HR practices
Improving the workplace environment
Providing health and safety at work
Maintaining a healthy balance between work and non-work aspects of employees life
Supply Chain:
Integrating social, environmental, human rights and other aspects into the supply chain
Using the supply chain to positively impact the stakeholders
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Customers:
Offering fair price and safe products
Focusing on customer satisfaction and loyalty
Environment:
Finding sustainable solutions for natural resources
Reducing adverse impacts on environment
Reducing environment-risky pollutants/emissions
Producing environment-friendly goods.
Community:
Providing job opportunity to people in the vicinity of the organisation
Addressing issues/risks faced by those living in the company surrounding areas
Making positive changes to the lives of the people through funding and other support for
community projects implemented by local agencies.
THE DRIVERS FOR CSR IN BUSINESS PRACTICES

Reliance maintains a strong relationship with its shareholders and employees, however, it does
not engage in any active community and environment development initiatives. According to Dhirubhai
Ambani, the founder, Reliance group, As an industrialist my job is to produce goods to satisfy the
demand. Let us be clear about it. Everyone has to do his job. My commitment is to produce at the
cheapest price and the best quality. If you dabble in every thing then you make a mess of things. If we
cannot take care of our shareholders and employees and start worrying about the world, then that is
hypocrisy. Despite Reliance Groups lack of active involvement in community and environment
development activities, the Group had fared considerably well in financial terms. The Mukesh Ambani-
led Reliance group overtook the Tata group, known for CSR in India, in market capitalisation stakes.
As of 2007, Reliance group has crossed the INR 5.22 trillion mark. Tata Group however has achieved a
market capitalisation of INR 3.20 trillion in 2007. This led to the argument on whether CSR initiatives
were really worth the effort and does it pay-off in financial terms.
In this context, the significant drivers for CSR in business practices can be elaborated as given below:
Legal compliance
Maintaining a strong relationship with shareholders and other investors
Creates new opportunities like new product development, market expansion, access to new
consumers, etc.
Better corporate reputation which influences the mind set of customers and suppliers and local
community
Enhanced employee morale and productivity (Competitive recruits want to serve for a
company that is socially responsible)
Effective control of risks for the survival of the organisation
Competitiveness and market positioning
CSR, integrated with the business, enables a company to reduce the operating cost
Enhanced relations with communities and regulators.
CONCLUSION
As the size, culture, industry, vision and commitment of leadership differs from one company
to another, the business model that integrates CSR initiatives also differs from company to company.
The following are some of the key strategies that can be integrated in the business model of a company
for effective implementation of CSR.
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CSR can best be implemented if it is included in the Mission, Vision and Values Statements of
a company. This mission and vision statements should be known to all the stakeholders from
shareholders to employees.
A company should have good corporate governance policies, which include following good
ethics, meeting legal requirements like maintaining proper books of accounts, paying taxes
and duties to the government, etc.
A company should develop a CSR culture in its organisation. It should have a separate CSR
department and should frame policies on how to integrate CSR from the stage of procuring
raw materials to supplying finished products to the consumers.
Procuring raw material from local community in the vicinity area
Quality maintenance in the supply chain, manufacturing, etc
Providing job opportunities to the local communities, thereby reducing the operations cost and
increasing sales
Producing environment-friendly goods
Having clear pro-active analysis on the impact of its business on the environment. This will
help the company to reduce the adverse impacts of business on the environment and avoid
public and government protests against its business operations
Effective use of employees in CSR implementation
Encouraging those employees who perform well in implementing social and community
initiatives, with rewards. This will help the company to improve employee morale, loyalty as
well as their productivity
Companies should audit and maintain their social and environmental reports. This will
facilitate awareness among its stakeholders about the companys CSR initiatives
REFERENCES
Components of Corporate Social Responsibility, http://www.ficci-sedf.org/compo-csr.htm
Research presentation at the first roundtable on Improving Knowledge about CSR European
Multi stakeholder forum on CSR,
http://ec.europa.eu/enterprise/csr/documents/20030212/warwick_business_school.pdf,
February 12th 2003
Baue Bill, Porter and Kramer Framework Melding CSR with Business Strategy Wins
Harvard Award, http://www.socialfunds.com/news/article.cgi/2268.html, April 10th 2007
115
A STUDY ON CUSTOMER SATISFACTION ON
AYURVEDIC HEALTHCARE SERVICES
Dr.A.Lakshmi Director, School of Management, K.S.Rangasamy College of Technology,
Tiruchengode.
V.S.Vijaya Chander Assistant Professor and Research Scholar, School of Management,
K.S.Rangasamy College of Technology, Tiruchengode.
ABSTRACT
This paper focused on Ayurvedic health care services offered by Ayurvedic hospitals and
expectations of patients. The study helps to identify the determinants of various factors which influence
the quality of the service provided by various health care centre and hospitals. The opinions of patients
were collected informally at different Ayurvedic hospitals in Erode district. The study also brings to the
limelight of new service requirements expected by patients, thus fulfilling the gap between the existing
services and patients requirements. Through this paper the study proposes systematic procedures for
conceptual analysis on patients perceived and expected service quality in Ayurvedic health care centre
and hospitals. The study brings out the factors which will significantly contribute to the satisfaction of
the patients. The main finding of the study is that most of the people feel that the Ayurvedic doctor
should look neat and clean as well as the personal care taken by doctors towards the patients. Of the
different factors studied the respondent gave least important to hospital tangible factor. This might be
possible because of the nature fear of the people that sound infrastructure may lead to high treatment
cost.
Key words: Ayurvedic health care centers, Ayurvedic doctor, hospital tangibility, patient satisfaction
INTRODUCTION
In competitive world, the service economy grows faster, so marketer need to know more about
marketing the service product and they need more professional approach since services are intangible
product.
The past Indian scenario indicates that, in 1950-51 service contributes about 12.8% to Indian
economy, in 1990-91 service contributes to 30.9% and in 2010-11 contributes to 61%.
In India specialized hospitals are growing in fast and them trying to differentiate from each
other like cardiac surgery, cancer, eye hospitals. Hospitals may be classified in another way based on
treatment method as Allopathy, Ayurveda, Siddha, Homeopathy and Unani. Each one is trying to create
a unique identity and wands to cater to a specific segment of market.
A customer is the most important visitor on our premises. He is not an interruption in our
work. He is the purpose of it. He is not the outsider on our business. He is a part of it. We are not doing
him a favour buying serving him. He is doing as a favour by giving as an opportunity to do so.
Mahatma Gandhi
SECONDARY RESEARCH
The secondary research was conducted to know that the patients are satisfied with the quality
of the service provided by Ayurvedic hospitals. The past data indicates that the research was carried in
general health care sector but not specifically in Ayurvedic sector. The authors feel that more research
should be done in patients satisfaction of Ayurvedic health care sector. The study was conducted from
various Ayurvedic hospitals in Erode district, Tamilnadu. The study was carried out between the
periods of two months.
116
QUALITY RESEARCH
The researcher discussed with the number of Ayurvedic doctors about the entire process and
types of data that can be collected from the patients and the way in which, data can be grouped. The
discussion helped to group the factors under six categories in structured model i.e., doctors service
oriented, hospital tangible, staff tangible, accessibility, process and treatment cost.
QUESTIONNAIRE DESIGN
A preliminary version of questionnaire was developed in English based on the past research.
The scale items were rated on five point likert scale in a structured format. Each item was rated as
numerical 1 as strongly dissatisfied and numerical 5 as strongly satisfied. This format was
recommended for health care services by the previous researchers. The questionnaire was pretested
several times to ensure wording, format, length of questionnaire, sequence of question and scaling
techniques.
SAMPLING AND DATA COLLECTION

The data was collected from 64 patients at five different Ayurvedic hospitals in Erode district,
Tamilnadu. The people who are all using the services of Ayurvedic health care centers and hospitals
form the population. The researcher collected data by visiting directly to all the Ayurvedic hospitals
and interviewing the patients. The sampling method followed by researcher was convenient sampling.
The list of public and private hospitals in Erode district is obtained from All India Ayurveda Congress,
Tamilnadu Chamber. To ensure that all the hospitals are included in the survey, each hospitals
inpatients are given equal chances to be included in the survey.
ANALYSIS
The researches obtained frequency distribution for each factors to check the data entry errors
to obtain mean and standard deviation. The factors are ranked according to their weighted mean to see
which factor contributes more to the satisfaction of patients.
A regression model of fitted for all level of satisfaction on many dependent factors like
doctors service oriented, hospital tangible, staff tangible, accessibility, process and treatment cost.
The model is represent by the equation,
Satisfaction = constant + b1 (doctors service oriented)

+ b2 (hospital tangible)
+ b3 (staff tangible)
+ b4 (accessibility)
+ b5 (process)
+ b6 (treatment cost)
To find the factors which are mainly influencing satisfaction level, a revised step wise
regression was run and revealed that only to factors i.e., doctors service oriented and hospital tangible
were mainly contributes to customer satisfaction. The revised model explained 73% cumulative
variation.
RESULT
DESCRIPTIVE STATISTICS
The mean and standard deviation of various factors influencing patient satisfaction are
presented in Table 1 and Fig 1. The mean of the satisfaction for the overall patients is 4.21 on five point
likert scale, has a positive valence, close to extreme point of 5. The factors tangible staff was rated as
high and treatment cost, tangible hospital were rated as low by the patients. This means that the patients
are highly satisfied with regards to the appearance and cleanliness of doctors and dissatisfied with
regards to the cost of treatment appearance and cleanliness of hospitals.
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Table 1: Descriptive Statistics of different factors
SUMMARY
Groups Count Sum Average S.D. C.V.
Service 64 271.0 4.234 0.415 9.795
Tangible(Hospital) 64 250.2 3.909 0.772 19.760
Tangible(Staff) 64 289.0 4.516 0.504 11.155
Access 64 254.6 3.979 0.719 18.081
Process 64 266.5 4.164 0.724 17.388
Treatment Cost 64 250.8 3.919 0.512 13.075
Fig 1: Chart of Mean Values of different factors
Mean Values of different factors
4.60 4.52
4.50 Service
Satisfaction Level
4.40
4.30 4.23 Tangible(Hospital)
4.16
4.20 Tangible(Staf f )
4.10 3.98
4.00 3.91 3.92 Access
3.90 Process
3.80
3.70 Treatment Cost
3.60
Treatment Cost
Tangible(Hospital)
Process
Service
Access
Tangible(Staff)
Factors
ANOVA
ANOVA test was conducted to see if there are any variations in average levels of satisfaction
of the patients under various factors. The ANOVA analysis is presented in Table 2. ANOVA reveals
that there is a significant difference in the satisfaction level of various factors (p = 0).
Table 2: ANOVA Table

Source of Variation SS Df MS F P-value F crit
Between Groups 17.69 5 3.54 9.12 3.32E-08 2.24
Within Groups 146.59 378 0.39
Total 164.27 383
CONCLUSION
The study reveals those customers are highly satisfied with regard to service and staff
tangibility. The factors which scored very low on satisfaction level are hospital tangibility and
treatment cost. This indicates that the Ayurvedic health care centers have to focus more on updating
the infrastructure of hospital and also reduce treatment cost. The Ayurvedic health care centers have to
equip with modern equipments and also maintain cleanliness and neatness of the hospitals. If the
infrastructure of Ayurvedic health care center is modernised, it may attract more number of patients
towards the Ayurvedic treatment. By reducing the cost of the treatment to the possible extent and
extending the personal care taken by the doctors towards the patients, the Ayurvedic treatment may be
revived to a new height in our country.
118
REFERENCES
Aldana MJ.Piechulek H. Sabir AA. 2001. Client satisfaction and quality of health care in rural
Bangladesh. Bulletin of World Health Organization 79: 512-6
Andaleeb SS. 2000a. Public and private hospitals in Bangladesh service quality and predictors
of hospitals choice, Health Policy and planning 15: 95-102.
Oliver RL 1997. Satisfaction: a behavioural perspective on the consumer New York :
McGraw-Hill
Parasuraman A, Herry LL, Zeithaml VA. 1991. Refinement and reassessment of the
SERVQUAL scale. Journal of Retailing 65: 420-50.
Parasuraman A, Berry LL, Zeithaml VA. 1991. More on improving service quality
measurement. Journal of Retailing 69: 140-7.
Rahman MM, Shahidullah M, Shahiduzzaman M, Rashid HA. 2002. Quality of health care
from patient perspectives. Bangladesh Medical Research Council Bulletin 28: 87-96.
Parasuraman A,Valarie A. Zeithaml, and Leonard.L.Berry. 1988. A multiple-item Scale for
measuring consumer perception of service quality, Journal of Retailing Vol.64 Number 1
spring. Pp.343-352.
Corin, .,J.J. & Tailor, S,A. 1992. Measuring services quality: A Re-Examination and
Extension, Journal of Marketing,56, pp.33-35.
Clement Sudhahar J.; Service Quality Gap Models, A Re-examination and Extension,
SMART Journal of Business Management Studies, Vol.1, No.2, July-December 2005.pp.42-
53.
119
ONLINE PURCHASE INTENTIONS A STUDY OF ANTECEDENT VARIABLES
Anu George Viswajyothi College of Engineering and Technology, Vazhakulam, Kerala,
S. Ganesan Suguna Spark Business School, Coimbatore
M K Ramachandran Nair IMK, University of Kerala, Trivandrum
ABSTRACT
The Indian Business world has to seek new ways of attracting and retaining its customers. The
world of e tailing needs serious attention from researchers to help identify ways and means to entice the
causal browser to online shopping. The purpose of this paper is to explore a conceptual model for
analysing consumers intentions to purchase online. To the three main constructs of the Theory of
Planned Behaviour (TPB) proposed by Ajzen, namely, Attitude, Subjective Norm and Perceived
Behavioural Control, an additional external construct, Consumer Demographics was added. They were
incorporated keeping in mind the cultural and ethnic values held by the online Indian shopper. An
empirical investigation was carried out to test the hypothesis. The sample included 305 online
shoppers. Online and offline data collection was employed. Hypothesis was tested using Independent
Sample T tests, ANOVA. Multiple Regression analysis was used to measure the relationship between
the variables. Findings revealed that Attitude was the biggest positive predictor of online purchase
intention. Subjective Norm did not exhibit a strong influence on purchase intention as one would
expect in a relatively conservative country like India. Perceived Behavioural control has displayed a
positive impact on intention despite popular notions that internet shopping is impractical given the poor
infrastructural facilities India offers. The managerial implications of the study are also discussed. The
findings of this study help understand which the biggest predictors of online purchase intention are.
Therefore efforts should developed by online stores to help develop a positive attitude toward online
shopping. This is the first time that TPB has been tested in the Indian online shopping scenario. This
paper provides insights into online consumer behaviour and the results have important implications for
marketers, academicians interested in E tailing.
Key Words Consumer Behaviour, Internet shopping, Intention
1. Introduction
Electronic Commerce in India is a relatively young but robust phenomenon in India. Its rapid
growth has been widely discussed. According to a study by Ernst and Young E-commerce penetration
level in India is 15 percent, which means 15 percent of the internet users are online shoppers. The
growth rate of e commerce is growing but the ratio of Indian ecommerce to world levels is dismally
low. Given Indias high usage of internet by its younger population it is imperative that the retail sector
must give due importance to the concept of E tailing. The online Indian has certain peculiarities and
online stores must be aware of it to take the best advantage. Given this paradox of increasing internet
usage that does not translate to online sales, it becomes imperative for researchers in online marketing
to analyse this lack lustr trend. The study of purchase behaviour commences with a study on need
recognition by the consumer. It is the first step to consummation process. This study is an attempt to
identify the factors influencing online purchase intention. The theoretical framework of this study is
based on the Theory of Planned Behaviour, a seminal work of Ajzen. This theory has been widely used
in the study of different kinds of behaviour including online purchase behaviour. However a study of
this nature has not been previously undertaken in India.
2. Conceptual Background and hypothesis testing:

2.1 The theory of Planned Behaviour
TPB posits that an individuals intentions at any given time are determined by three important
factors: internal factors, like the attitude of the individual toward the behaviour; external factors, such
as Subjective Norms that govern that behaviour and the factors of time and chance defined as Perceived
behavior control beliefs.
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2.2 Attitude
Attitude may be described as a mental state involving beliefs, feelings, values and dispositions
that guide an individual to act in a certain way. Attitude has become one of the key variables of IT
acceptance; especially in e commerce Attitude towards online shopping has a significantly different
impact on the online consumer process than attitude in the offline consumer process
Hypothesis 1: Attitude positively influences intention to online purchase.
2.3 Cost Savings

Cost savings and time saving may be two of several major determinants to online shopping.
Jayawardhena et al found that discerning internet users were prepared to comparison shop using the
internet to find the best prices. Watchravesringkan and Shim also noted that although price alone may
be a less important motivation to shop online in comparison with convenience, however, the
combination of price information and time saving is a major determinant.
Hypothesis 2: Cost savings positively influences attitude to online purchase.
Hypothesis 3: Time savings positively influences attitude toward online purchasing.
Hypothesis 4: Subjective norm positively influences intention to shop.
Hypothesis 5: PBC positively influences intention to purchase.
Hypothesis 6: Controllability positively influences PBC.
Hypothesis 7: Self Efficacy positively influences PBC.
Hypothesis 8: Men are positively inclined to online shopping than Women.
To explore differences in groups based on the variables of the study, independent sample t-tests were
employed for
3. Methodology
A sample of 305 respondents was obtained after conducting online and offline surveys. A
structured questionnaire comprised of questions pertaining to consumer demographics, internet usage,
statements measuring intention and customer satisfaction was used. The scale items were derived from
a combination of note worthy researches in both traditional and online research contexts. Participants
rated statements based on closed-ended 1-to -7 Likert Scale format. The purpose of employing the 1-to-
7 Likert scale format was to make the independent variables and the dependent variables continuous in
order to conduct a statistical analysis. Prior to the full survey experiment, a pilot study was performed
to test the survey website as well as to examine the measurement instrument. Twenty households and
ten students participated in the pilot study. Prior to the commencement of data analysis, all the
constructs used in this study were subject to the reliability test. Cronbach values for all constructs were
well above the acceptable level of 0.70.The responses were suitably studied using descriptive statistics,
exploratory and inferential statistics. Consumer demographics and Internet shopping was studied using
descriptive statistics and the factors influencing purchase intention and satisfaction was studied using
Independent Samples T test, One way ANOVA analysis and Correlation. The relationship between the
factors themselves and their influence on the dependent variables was studied using Multiple
Regression. All statistical tests were completed on SPSS version 18.0. The level of statistical
significance for this study was set at p e .05.
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3.1 Sample Characteristics:
Of the respondents, gender was divided into 184 males (60.3%) and 121 females (39.7%).
Most of the respondents were in the age group between 26 and 30 years. This category is closely
followed by the upto 25 years and by the group between 31 and 35 years. This confirms findings of
other studies that online shoppers are young. Most of the respondents (62.3%) were professionally
qualified, this is followed by category of participants who have degrees in Arts and Science streams.
57.4% of the respondents were salaried persons, followed by students with 18.4% and entrepreneurs
10.2%. Majority of the participants drew monthly incomes above Rs. 40000. The internet usage
statistics of the sample revealed that most participants use the internet for atleast two hours per day.
The purchase frequency statistics revealed that 21.6% of the sample buys more than once in a month.
4.1 Attitude:
Attitude was tested against Education levels of the different groups in the sample. The results
of the ANOVA and Post Hoc tests reveal that that there are statistically significant differences in the
means between the groups Upto Plus 2 and Arts and Science Degree and PG. The mean of the Upto
Plus 2 group is M = 5.06 and that of Arts and Science Degree and PG M = 4.79. The favourable
attitude of the first group is probably attributed to the fact that they are younger and are most exposed
to computers all through school years. Most of the respondents who are professionals agree that it is a
good idea to shop online with means at M = 5.23. This group also differs from the group that possess a
graduation or Post Graduation in Arts and Science who are neutral to this idea with M = 4.79. It may be
assumed that technical and professionally qualified people are more inclined to online shopping as they
are more comfortable in using technology and probably more exposed to computers and understanding
how the internet works than those with others kinds of educational qualification.
The correlation analysis revealed that attitude at r = 0.487 has a significant, positive
relationship with purchase intention. This has been supported by most of the studies on the influence of
attitude on purchase intention. Therefore the null hypothesis may be rejected.
4.2 Cost Savings:

Correlation analysis of cost savings to attitude was conducted. The Pearson r value of Cost
savings r = 0.356 shows a positive and significant relationship between reduced costs and attitude to
online shopping.
4.3 Time Savings:

Correlation analysis was carried out for time savings to purchase intention. In this study, time
savings has a significant and positive correlation coefficient at r = 0.352, which means that the subjects
agree that time savings is a good enough reason to shop online though not the conclusive reason to
choose it over traditional stores. This means that the null hypothesis may be rejected.
4.4 Subjective Norm:

The results of the ANOVA and Post Hoc tests reveal that the group that falls in the income
bracket of Rs.30001 Rs. 40000 differ significantly (at mean M = 3.92 against the average of M
=4.59) from all other groups. The influence of family and friends on all other groups is perceived as
neutral, while this group mildly disagrees with the statement that their family and friends think its fine
to shop online. This may be because this group is a set of young professionals who think that family is
not properly informed to advise them on online shopping and also because they want to be the first in
their peer group to shop a product and be the one to advise others.
The correlation analysis of Subjective Norm to Purchase Intention reveals a moderate but
significant relationship between the two at r = 0.324. This shows that influence of family and friends
are not as convincing in the online scenario as one would expect in a relatively conservative country
like India. This may be due to the fact that online shoppers being very financially secure and
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independent and being well qualified do not seek the opinion of others in their shopping. The null
hypothesis may be rejected.
4.5 The ANOVA and Post Hoc results of Perceived behavioural control to education reveal certain
statistically significant results. The means of the two groups Arts and Science graduates and Post
graduates at M = 5.31 and Professional graduates M = 5.74 are significantly different. Perceived
Behaviour is the ability with which a person believes a particular task, in this shopping online, to be
easy or difficult. Most professionals of this sample agree that they are online shopping is a very easy
operation for them. This may be due to the fact that they are familiar with the operating technology, are
better equipped to grasp the fast changes and are better educated than the other group in focus i.e.
graduates and Post Graduates of Arts and Science streams. Arts students by nature of their education
and job profiles do not require highly technical knowledge which is the forte of the other group.
The correlation analysis of PBC to Purchase intention reveal a positive but significant
relationship between the two variables at r = 0.346. PBC was an important factor in the days when
internet shopping was new, but as familiarity increases perhaps shoppers get accustomed to the nuances
and know what to expect reducing the importance of PBC with time. Hence the null hypothesis may be
rejected
4.6 Self Efficacy and Controllability:

The correlation analysis of Controllability to PBC was performed and the coefficient Pearson r
value showed a positive coefficient level r = 0.667, this means that the relationship is a very strong one
and is a statistically significant one. The results of the correlation analysis for self efficacy to PBC
shows a positive and significant at r = 0.703. This implies that self efficacy also strongly influences
PBC. Thus the null hypothesis may be rejected
4.7 Consumer Demographics:

Among the participants, there were 184 males and 121 females. The results of the Independent
Sample T Test analysis indicate that among the independent variables and the dependent variable
intention to purchase showed a significant difference between males and females. The independent T
test analysis indicated that the 184 males had a mean of 4.84 and the 121 females had a mean of 4.42.
The relationship was statistically significant at pe.05 level. The means of the intention to purchase
differed significantly at p <.05 levels (p=.039). Therefore there is a 95% probability that these
relationships were not produced by chance. This supports the assumption that men are most positively
inclined to shop online than women.
Multiple regression analysis studies the strength of relationship between the independent
variables - attitude, subjective norm, PBC and Consumer Demographics. The R value .534 is the value
of the multiple correlation coefficient between the predictors and the outcome. The results of regression
analysis have following interpretations. If attitude is varied by 1 unit, intention will vary by .391
showing that it is the biggest predictor of intention. However, in the case of monthly income with one
unit variation, intention varies negatively by 0.11 depicting a negative relationship. The Durbin Watson
score is the statistic that informs whether the assumption of independent errors is tenable. Its value
should be around 2; in this case it is 1.95.
ANOVA tests whether this model is significantly better at predicting the outcome than using
the mean as a best guess. Specifically, the F ratio represents the ratio of the improvement in
prediction that results from fitting the model, relative to the inaccuracy that still exists in the model. If
the F value is greater than 1 it is significant then it indicates that the model as a whole has significant
ability to predict the outcome. Since the F value is 14.78 it is significant in predicting the outcome.
The Beta value depicts the impact of the variable in the model. The Beta value of attitude is
the highest with .391, which goes to explain that this factor has the highest impact in the model. This is
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followed by PBC with a Beta weight of .081 and finally Subjective Norm with .079.Among the
demographic variables education has the strongest impact in the model with a Beta weight of .155. The
analysis reveals that attitude is the biggest indicator of purchase intention as contended by other
studies. The standardised Beta weight is a positive value indicating that the results are significant at the
p 0.05level.
Table 1: Pearson Correlation Analysis Intention to Purchase

Correlations
Controllability
Time Savings
Self Efficacy
Cost Savings
Subjective
Intention
Attitude
Norm
PBC
N = 305
Intention to Correlation 1 .487** .324** .311** .346** .321** .128* .216**

purchase
Sig.2-tailed .000 .000 .000 .000 .000 .025 .000
Attitude Correlation .487** 1 .534** .526** .560** .455** .352** .356**

Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
Subjective Correlation .324** .534** 1 .386** .381** .356** .333** .334**
Norm Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
Controllability Correlation .311** .526** .386** 1 .667** .608** .424** .348**
Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
PBC Correlation .346** .560** .381** .667** 1 .703** .559** .386**
Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
Self Efficacy Correlation .321** .455** .356** .608** .703** 1 .472** .369**
Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
Time Saving Correlation .128* .352** .333** .424** .559** .472** 1 .322**
Sig.2-tailed .025 .000 .000 .000 .000 .000 .000
Cost Saving Correlation .216** .356** .334** .348** .386** .369** .322** 1
Sig.2-tailed .000 .000 .000 .000 .000 .000 .000
Table 2 Multiple Regression Analysis Factors influencing Purchase Intention

Coefficientsa
Model Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
B Std. Error Beta t Sig. Bound Bound
1 (Constant) .382 .596 .640 .522 -.791 1.554
Gender -.209 .185 -.060 -1.130 .259 -.573 .155
Age .106 .088 .075 1.208 .228 -.067 .279
Education .394 .132 .155 2.983 .003 .134 .654
Occupation .009 .080 .006 .111 .912 -.148 .165
MonthlyIncome -.011 .064 -.011 -.178 .859 -.138 .115
Attitude .460 .078 .391 5.890 .000 .306 .614
Subjective Norm .088 .065 .079 1.349 .178 -.040 .216
PBC .100 .075 .081 1.341 .181 -.047 .247
a. Dependent Variable: Intention to purchase
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Table 3 Model Summary Factors influencing Purchase Intention
Model Summaryb
Change Statistics
Adjusted R Std. Error of R Square Durbin-
R R Square Square the Estimate Change F Change df1 df2 Sig. F Change Watson
.534a .285 .266 1.472 .285 14.748 8 296 .000 1.951
a. Predictors: (Constant), PBC, Occupation, Education, Gender, Subjective Norm, Age, Monthly
Income, Attitude
b. Dependent Variable: Intention to purchase
5. Discussion
Business need to consider that online shoppers are young, with high incomes, relatively risk
averse, mostly male, who are not very price conscious but attracted by a good deal. Men are more
inclined to shop online than women, as revealed by the findings with men scoring higher than women
on all factors except on Subjective Norm where both genders were tied. These characteristics must be
taken into consideration when deciding on a segmentation strategy. Similarly since they are technology
savvy, innovating with technology would be a safe bet. Attitude of the consumer is the surefire way to
induce purchase intention. Firms should center on attitude building advertising exercises. If different
benefits of online shopping are highlighted for different groups general attitude can be improved.
Subjective Norm is not such an influential factor in the Indian online shopping scenario. Opinions of
family and friends are not taken so seriously by these shoppers who are mainly urban dwellers. Offer a
convincing product and they will look no further. This is indeed a boon for online stores in a seemingly
traditional society like India. However the group with agriculture as occupation displayed higher
influence of family and friends supporting the earlier observation. PBC is also seen to have a positive
effect on purchase intention. Online shopping is seen as an easy process by people who have technical
education and others report the process to be less easy. So the process of shopping must be kept as
simple and convenient as possible, not compromising the security of the transaction.
6. Limitations
The limitations of this study were in the fact that respondents answered the questionnaire
based on their experiences from different websites. A negative experience from one can offset the
advantages he has experienced from many. The ability of the respondent to accurately remember and
describe his experience is also disputable. Snow ball sampling also restricts the study in deciding
geographic locations.
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SERVICE QUALITY GAP ANALYSIS IN EDUCATIONAL SERVICE
M.Ramakrishnan M.Tech., MBA., M.Phil, (Ph.D), Assistant Professor, Department of Management
Studies, K.S. Rangasamy College of Technology, Tiruchengode 637209
Abstract
Education is a service that is geared primarily to the consumer market. Educational institutions
in India are facing more demand in service than they could cope with. As the higher education is
moving from content to context, the role of educational institutions in providing the quality of service
is getting important. Students and faculty satisfaction and their understanding are furthermore
important in the present educational system. This paper work identifies the critical service quality
dimensions which lead to the Gap between faculty and students by using SERVQUAL instruments.
Introduction
Education is a service directly affected by the Service provider, and it services may be
effective to the requirement or inadequate as the quality of the academic services offered. As colleges
continue to become student oriented, understanding students perceptions, services offered are
becoming more important. Assessment and the quality of educational services have been the dominant
area in the present context of education.
Which method can be used?

Many authors have suggested that colleges should adopt market driven service quality models
to assess student satisfaction with support services. Such models are appropriate for organizations that
meet the following criteria:
a) the primary product is intangible in nature

b) the users participate in the delivery of service
c) the service provided are generally produced and consumed simultaneously
(Gronroos, 1990, Parasuraman, 1991)
SERVICE QUALITY
Ghobadian et al. (1994) posit that most of the service quality definitions fall within the
customer led category. Juran (1999) elaborates the definition of customer led quality as features of
products which meet customers needs and thereby provide customer satisfaction. As service quality
relates to meeting customers needs, we will be looking at perceived service quality in order to
understand consumers (Arnauld et al., 2002). Grnroos (1984) and Parasuraman et al., (1985) looks at
perceived quality of service as the difference between customers expectation and their perceptions of
the actual service received. Other researchers look at perceived service quality as an attitude. Arnauld
et al., (2002) defined perceived quality whether in reference to a product or service as the
consumers evaluative judgment about an entitys overall excellence or superiority in providing desired
benefits. Hoffman & Bateson (2001) defines service quality as an attitude formed by a long-term,
overall evaluation of a performance. Attitude is defined as a consumers overall, enduring evaluation
of a concept or object, such as a person, a brand, or a service. (Arnauld et al, 2002) Service quality as
an attitude is consistent with the views of Parasuraman et al., (1988), Cronin & Taylor (1992) &
Sureshchandar et al., (2002). Basis of the view is elaborated by the latter:
SERVICE QUALITY MEASUREMENT

It is difficult to measure service quality as compared to goods quality. The difficulty to
measure is due to fewer tangible cues available when consumers purchase services (Parasuraman et al.,
1985), fewer search properties, but higher in experience and credence properties (Zeithaml, 1981 in
Parasuraman 1985), as compared to goods. It also requires higher consumer involvement in the
consumption process (Grnroos, 1984). Researchers operationalized the service quality construct either
as a gap between expectation of service and perceived performance of service, or just perceived
performance alone (Hurley and Estalami, 1998). On the other hand, service quality dimensions are seen
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as the criteria to assess service quality (Parasuraman, Zeithaml, and Berry, 1985). Feinburg, and de
Ruyter (1995) supported this idea as they postulate that the dimensions are instruments for measuring
perceived service quality. They also posit that consumer-perceived service quality is usually seen as a
multi-dimensional construct. The earliest research on service quality dimensions was done by Grnroos
(1984). He found that the perceived quality of a service is affected by the experience that the consumer
went through for a service. Therefore, he encapsulated the perceived quality of a given service as the
outcome of an evaluation process; a comparison between the consumer expectations of the service with
his perceptions of the service he has received. He also pointed that expectation is influence by
traditions, ideology, word-of-mouth communication, and previous experience with the service and the
consumers perception of the service itself determines his perceived service. However, he did not
discuss the relationship between perception and expectation and how it influences service quality.
Dimensions of Service Quality in Educational Services

Dimensions of Service Quality Definition
Reliability The accuracy and dependability with which a faculty or
department or college provides service
Responsiveness The demonstration of an eagerness to be of service, and a
commitment to act in the best interest of the students
Assurance The ability to earn students confidence by performing services in
a knowledgeable and professional manner
Empathy Being able to communicate care and understanding through the
interpersonal skills of the staff and student friendly policies and
procedures
Tangibles The physical appearance of the department, its staff, and any
materials associated with service delivery
Research Method
Sampling Technique: Convenience Sampling
Sample Size: 200 for Students, 200 for Faculty
Data Collection Method: Questionnaire, Interview Schedule
Tools used for Analysis: SERVQUAL Analysis
Instrument used:
The instrument used was an adaptation of the SERVQUAL survey that included 22 Likert
scale items measuring five postulated dimensions of service quality. The original SERVQUAL survey
was specifically designed to assess organizations and businesses in the service sector. Minor changes in
wording were used to adopt this studys survey to an academic setting.
Students and faculty members were asked to rate the each of 29 factors leading to the service
satisfaction. The relative size of the gap between these two ratings was used to identify the areas where
students and faculties have difference in perception to the same service quality dimension.
Major Findings
A gap of 2.20 in staff interest to resolve all the students doubts and a gap of 2.04 between
staff and students on getting back to issues and within time.
A Gap of 1.78 in Staffs accessible to the students
A Negative gap of -1.88 for Staff not willing to help the students.
A Gap of 1.92 for Staff unbiased in giving internal marks to students.
A gap of 2.01 for trusting staff for any problem.
A gap of 1.86 for easy accessibility of various departments.
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RESULTS
This study explored a number of factors that determine student, faculty perceptions of service
quality. Though the institutes are lacking behind in many parameters, the significant gap is in the
Reliability and Responsiveness parameters. As discussed above, reliability is a measure of the trust
the students have on the institutes. Hence effort should be made to increase the faith of the students on
the reliability parameter.
This paper focuses on demonstrating that the SERVQUAL model which can be used to assess
and improve the quality of student. The specific results of this study may be generalized to the
institutions different from those used in the study and the model and the process can be adapted to other
types of colleges and institutions.
SERVQUAL parameters used in the survey
Staff members show great interest in solving students doubts related to subjects
Staff members are able to resolve all the problems at the first instant
Staff members provide the correct answers to all the questions
Staff members promises to get back on certain issues and do it within the time
The physical facilities should be adequate / pleasant
Staff should have utilized the up-to-date teaching tools
Staff should be well dressed and appeared professional
Staff members are easily accessible to all the students
Staff members keep-up their promise
Staff members are expected to be sympathetic and reassuring on any students crisis
Staff members can be trusted for any kind of problem
Staff members should update their records promptly and accurately
There is no reason for a staff member to tell students exactly when services would be
performed
It is not realistic for students to expect prompt service from the staff members
Staffs are not willing to help the students
Staff members do not find time to respond to the students request promptly
Staff should have adequate knowledge to answer student questions
Staff members are getting adequate support from the management to do their work
Staff members are expected to give individual attention to the students
Staff members are expected to know all the requirements of the students
Staff members are expected to know the learning needs of the students
The college keeps the students regularly informed of various information in advance
The college is able to service the requests of students at the earliest
Various departments in the college is easily accessible to the students
The facilities in the college can be easily located and accessible
The facilities in the college are posh and well maintained
The course material given to students is relevant and adequate.
CONCLUSION
This paper work identifies the various service quality parameters in the educational services.
The SERVQUAL instrument used in this study is applicable to the educational service quality
assessment. Colleges and institutions by using this SERVQUAL survey model, identifies their service
quality and can provide the best educational service.
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REFERENCES
1. Astin, A. Assessment for excellence: The philosophy and practice of assessment and evaluation
in higher education. Macmillan Press, 1990.
2. Astin, A. What matters in college? Four critical years revisited, Macmillan Press, 1993
3. Bennett, W. To reclaim a legacy. Washington, DC: National Endowment for the Humanities,
1984.
4. Boulding, W., Kalra, A., Staelin, R., & Zeithaml, V. A dynamic process model of service
quality: From expectations to behavioral intentions. Journal of Marketing Research. 30,
February 1993, 7-27.
5. Cuthbert, P. F. Managing Service Quality in Higher Education: Is SERVQUAL the Answer?,
Managing Service Quality, Vol. 6, No 3, 1996, 31-35.
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SERVICES MARKETING AND MANAGEMENT
Mr.G.Nagamanickam Lecturer, Muthayammal Engineering College, Rasipuram.
Ms.S.Dhivya II MBA, Muthayammal Engineering College, Rasipuram.
ABSTRACT
A service is an act or performance offered by one party to another. Although the process may
be tied to a physical product, the performance is essentially intangible and does not normally result in
ownership of any factor of production.
Service is to distinguish between the core and peripheral elements of that service. The core
service offering is the necessary outputs of an organization which are intended to provide the
intangible benefits customers are looking for. Peripheral services are those which are either
indispensable for the execution of the core services or available only to improve the overall quality of
the service bundle.
The services marketing triangle helps the service provider to get success in their service
production. The external, internal and interactive marketing is strives towards the factors such as
enabling, setting and delivering the promise respectively. This triangle having inter and intra
relationship between the management (company), employees and market (customers, suppliers, etc.).
Service management draws insides from business practice and from marketing, operations,
human resources, service quality management, organizational theory and economics. Its 5 key facets
are drives the service organizations to understand the utility, perceived quality, changes in the minds of
the customers from time to time, capacity of the organization, improvement in the capacity and
achieving the objectives of an organization.
Service management as an overall management perspective gives high priority to the external
efficiency of the firm, how customers perceive the quality of the core products and the total
performance of a firm, instead of overemphasizing internal efficiency, economies of scale and cost
reduction. This combines the overall management perspective of service management with its
customer-driven and quality-oriented facets, employee-oriented concerns and its long term perspective.
Service management perspective that fits todays competitive situation. This is done through a variety
of services and by turning activities such as deliveries, technical service, claims handling, a telephone
exchange, invoicing, etc. into customer-oriented, value-adding services.
Meaning of Marketing:
Identifying and satisfying the needs and wants of consumers by providing market offering to
fulfil those needs and wants through exchange process profitable.
Meaning of Services:
It is an intangible in nature. For e.g. Hotel business, personal care, legal, medical services,
banking, insurance, transportation services etc.
Definition of service Marketing:

A service is any act (or) performance that one party offers to another, which is essentially
intangible and does not result in the ownership of anything. Its production may (or) may not be tied to a
physical product. -Philip Kotler.
Evolution of service sector:

Introduction:
Liberalization, Privatization, Globalization (LPG) has brought unexpected changes in the
economic, trade and industrial scenarios. India is fast moving from a protected economy to an open
130
market economy and becoming integrated with the world economy. LPG environment has exposed
variants organizations including the service sector to the challenges of competition, service quality,
cost and the competitive environment will help organizations to modernize. Some of those unable to
cope with the changes may have to face the consequences and more problems of survival of the off test.
1. The crawling out stage which took place prior to 1980.
2. The scurrying about stage between 1980 and 1986.
3. The walking erect between 1986 and 2000.
4. The galloping stage from 2000 till date.
Crawling out stage:

In the crawling out stage, discussion centered around the need for a separate body of literate
to deal with specific problems of the service sector.
Scurrying about stage:

In the scurrying about stage between 1980 and 1985 efforts were made to classify services more
clearly and attention focused heavily on the crucial issue of managing quality in services operation .
walking erect stage:

In the walking erect stage since 1986, there has been almost no discussion of whether
services are different from goods, but rather the literature has focused on specific marketing problems
of services organisation.
Galloping stage:
In the Galloping stage since 2000, there has been an increase in the growth of the services
sector and services are the main contributors to the GDP of the country.
Issues of services marketing:

The companies are not able to show the tangible clues
Time management and expectation cant be predicted within the stipulated period
Value identification and creation of belief is not possible without the proper engagement of
the service
Treatment of customer and fulfilment in the expectation is not properly managed.
Proper training and education to the employees and customer not provided at required period
of time.
Application of available strategies or traditional strategies followed by the organisation in the
same sector.
Sales are the major part for the consumption of services.
Revenue generation and period of drought is properly managed in increasing and decreasing
situation respectively.
Insufficient of labour with high enthusiastic, acceptable and adjustable to the environment
respectively.
Reasons for the growth of the services economy:

1. The lag in growth in labour productivity in services compared with the rest of the economy.
2. The growth in intermediate demand from firms.
3. The growth in final demand from consumers.
The lag in growth in labour productivity in services.
Part of the explanation for the growth of services is attributed to the slower growth of labour
productivity, as measured by volume of output per employee.
a. A greater decline in hours worked per man in services than in industry.
b. A more rapid increasing in the quality of labour in industry than in service.
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c. A difference in the physical capital per worked available in industry compared with services.
d. More rapid technological change in industry than in services: and that industry benefits more
from scale economies.
The growth in intermediate demand from firms:
Another part of the explanation for the growth of services is attributed to the growth of
intermediate demand from firms. Business buyers have always used an array of services like
accounting, construction, banking, insurance, legal, research, advertising, public relations, training,
transport, and shipping and consultancy services.
The growth in final demand from consumer:
It includes changed lifestyle, more leisure time, longer life expectancy and the increasing
complexity of life. Technological developments mean more goods- which require specialist service in
fields like motor cars, stereophonic equipment, video equipment and home computers.
Significance of Services Marketing:

Creation and expansion of job opportunities.
An optimal utilization of resources.
Paving avenues for the formation of capital.
Increasing the standard of living.
Environment friendly technology.
CONCLUSION:
Indian Economy is the Worlds fastest growing economy. Our Economy is based upon the
Services sector. About 67% of Indian GDP is contributed by Services sector. Services sector has a vast
space of opportunities which can be enjoyed by the young population. India is the nation which is
having highest density of youngsters living in. So, the employment opportunities are available in
abundant.
132
BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
K.Damodaran, Asst.prof, Professional School of Management,
N.Aarthy, Asst.prof, Professional School of Management.
INTRODUCTION:
As recently as a decade ago, many companies viewed business ethics only in terms of
administrative compliance with legal standards and adherence to internal rules and regulations. Today
the situation is different. Attention to business ethics is on the rise across the world and many
companies realize that in order to succeed, they must earn the respect and confidence of their
customers. Like never before, corporations are being asked, encouraged and prodded to improve their
business practices to emphasize legal and ethical behaviour. Companies, professional firms and
individuals alike being held increasingly accountable for their actions, as demand grows for higher
standards of corporate social responsibility.
Definitions:
Corporate:
1. Emanating from or pertaining to a group activity.
2. Emanating from or pertaining to a company constituted legally under a companies act or
similar legislation.
IN BRIEF: Belonging to an association of employers and employees in a basic industry

Social Responsibility:
The principle that companies should contribute to the welfare of a society and not be solely
devoted to maximizing profits .
Ethics:
1. The science of moral obligation; a system of moral principles, quality, or practice.
2. The moral obligation to render to the patient the best possible quality and to maintain an
honest relationship with other members of the profession and mankind in general.
So in total, corporate social responsibility and refers to ethics, essentially, consist of a set of
moral guidelines towards conductance of an appropriate behaviour. Such behaviour conforms to
professional standards of conduct. The corporate code of ethics consist of a set of moral principles and
values that govern the behaviour of the organization with respect to what is right....
Corporate Social Responsibility (CSR) is a concept which encourages organizations to

consider the interests of society by taking responsibility for the impact of the organizations activities on
customers, employees, shareholders, communities and the environment in all aspects of its operations.
This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees
organizations voluntary taking further steps to improve the quality of life for employees and their
families as well as for the local community and society at large.
The four myths of CSR :

Deborah Doane, the chair of the Britain based organization CORE Coalition(for Corporate
Responsibility), wrote an article for the fall 2005 issue of the Stanford Social Innovation Review
where she listed and debunked what she called the four key myths of CSR. Those myths are:
1.The market can deliver both short-term financial returns and long-term social benefits
According to Doane , not only are the interests of profit-seeking corporations and broader
society often at odds, but socially responsible investments by corporations are particularly unlike to
pay off in the two to four year time horizon that public companies, through demands of the stock
market, often seem to require.
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2.The ethical consumer will drive change.
Doane writes, Most surveys show that consumers are more concerned about thing like
price, taste, or sell-by date than ethics. Wal-marts success certainly is a case in point.
3.There will be a competitive race to the top over ethics amongst businesses.
While CSR efforts often offer good PR, which companies of course like, in some cases
businesses may be able to capitalize on well-intentioned efforts say by signing the U.N . Global
Compact, without necessarily having to actually change their behaviour.
4. In the global economy, countries will compete to have the best ethical practices
Although companies often claim that their presence in developing countries will improve
health, environmental and labour conditions, Doane counters, : companies often fail to uphold
voluntary standards of behaviour in developing countries, arguing instead that they operate within the
law of the countries in which they are working. In fact, competitive pressure for foreign investment
among developing countries has actually led to government limiting their insistence on stringent
compliance with human rights or environmental standards, in order to attract investment.
10 Benefits of Managing Ethics in the Workplace:

Many people are used to reading or hearing of the moral benefits of attention to business
ethics. However, there are other types of benefits, as well. The following list describes various types
of benefits from managing ethics in the workplace.
1. Attention to business ethics has substantially improved society.

A matter of decades ago, children in our country worked 16-hours days. Workers limbs were
torn off and disabled workers were condemned to poverty and often to starvation. Trusts controlled
some markets to the extent that prices were fixed and small business chocked out. Price fixing crippled
normal market forces. Employees were terminated based on personalities. Influence was applied
through intimidation and harassment. Then society reacted and demanded that business place high
value on fairness and equal rights. Anti-trust laws were instituted. Government agencies were
established. Unions were organized. Laws and regulations were established.
2. Ethics programs help maintain a moral course in turbulent times.

Wallace and pikl explain that attention to business ethics is critical during times of
fundamental change- times much like those faced now by business , both non-profit or for-profit.
During times of change, there is often no clear moral compass to guide leaders through complex
conflicts about what is right or wrong. Continuing attention to ethics in the workplace sensitizes
leaders and staff to how they want to act- consistently.
3. Ethics programs cultivate strong teamwork and productivity.

Ethics programs align employee behaviours with those top priority ethical values preferred
by leaders of the organization. Usually an organization finds surprising disparity between its preferred
values and the values actually reflected by behaviours in the workplace. Ongoing attention and
dialogue regarding values in the workplace builds openness, integrity and communitycritical
ingredients of strong teams in the workplace. Employees feel strong alignment between their values
and those of the organization. They react with strong motivation and performance.
CONCLUSION:
A survey of 138 college students reveals an undergraduate major has a greater influence on
corporate social responsibility than business ethics. Business students are no less ethical than non
business students. Females are more ethical and socially responsible than males. Age is negatively
related to ones Machiavellian orientation and positively related to negative attitudes about corporate
efforts at social responsibility. The results suggest a greater need to focus business ethics instruction
based on student characteristics.
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THE PARADIGM SHIFT UNORGANISED TO ORGANISED RETAILING
S. ANITHA, Asst. Prof, Department of Management Studies, Tagore Engineering College, Chennai
ABSTRACT
Introduction
The Indian retail industry is the fifth largest in the world. Comprising of organised and
unorganised sectors, India retail industry is one of the fastest growing industries in India, especially
over the last few years. Though initially, the retail industry in India was mostly unorganised, however
with the change of tastes and preferences of the consumers, the industry is getting more popular these
days and getting organised as well. With growing market demand, the industry is expected to grow at a
pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-
05 to Rs. 109,000 crore by the year 2011.
Retailing is one of the pillars of the economy in India and accounts for 13% of GDP
The retail industry is divided into organised and unorganised sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for
sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also
the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the
traditional formats of low-cost retailing, for example, the local kirana outlets, owner manned general
stores, paan/beedi outlets, convenience stores, hand cart and pavement vendors, etc. In India,
aoutletkeeper of such kind of outlets is usually known as a dukandar.
Organised Retailing in India:

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being
perceived as a beginner and as an attractive commercial business for organised business i.e. the pure
retailer is starting to emerge now. Organised retail business in India is very small but has tremendous
scope. Organised retailing will grow faster than unorganised sector and the growth speed will be
responsible for its high market share, which is expected to be $ 17 billion by 2010-11.
Unorganised Retailing in India:

In India, the most of the retail sector is unorganised. In India, the retail business contributes
around 11 percent of GDP. Of this, the organised retail sector accounts only for about 3 percent share,
and the remaining share is contributed by the unorganised sector which is mostly a family owned
business in India. The main challenge facing the organised sector is the competition from unorganised
sector. Unorganised retailing has been there in India for centuries, theses are named as mom-pop stores.
The main advantage in unorganised retailing is consumer familiarity that runs from generation to
generation. It is a low cost structure; they are mostly operated by owners, have very low real estate and
labor costs and have low taxes to pay.
Literature Review
India is being seen as a potential goldmine for retail investors from over the world and latest
research has rated India as the top destination for retailers for an attractive emerging retail
market. Indias vast middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Even though India has well over 5 million retail
outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense
of the term.
Mohanty& Panda (2008) opines about retailing as a sector of India occupies important place
in the socio-economic growth strategy of the country. India is witnessing retailing boom being
propelled by increasing urbanisation, rising purchasing power parity (PPP) of ever growing
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Indias middle class, changing demographic profiles heavily titled young population, technological
revolution, intense globalisation drive etc.
Sahu (2010) describes that a rise in consumer confidence, improvement in profitability

and aggressive expansion plans signal better tidings for listed players in the organised retail
space. Moreover, analysts believe listed retailers could attract foreign investments by spinning
off their subsidiaries into separate companies which can provide a great opportunity for the
improvement of this sector.
Gellner (2007) explains in this context that in most retail meetings and/or publications, hardly
ever is there any talk on problems that modern retail formats are encountering doing business in India.
There is a significant profitability challenge, to deliver the brand promise in terms of quality
and geographic spread in line with the growth in consumer demand.
Nagesh (2007) describes that Indian retailing will see a sea of change in the next five years,
driving consumption boom never seen in the history of any country. From a drout situation we will see
a flood of modern retail, So Indian retail will be on a steady ground of sustained growth year after year
and thereafter.
Akash (2009) says that Retail business in India, as anywhere else in the world, plays a crucial
role in an economy. Retail in India has the potential to add value over Rs 2,00,000 crore
($45billion)business by the year 2010 generating employment for some 2.5 million people in various
retail operations and over10 million additional workforce in retail support activities including contract
production and processing, supply chain and logistics, retail real estate development and management.
Gibson, CEO Retail Association 0f India opines (2007) that modern retailing today is growing faster
than expected while the current growth rate is around 30 percent, the sector is expected to grow at 40-
50percent on a year basis. Shivkumar, Executive Director and leader of Retail and Consumer Practices
Price Warehouse Co-operatives,(2009)also holds the opinion that retailing is the next sunrise segment
of the economic development of the country.
Mishra (2008) says, there is a hectic activity in the sector in terms of expansion,
entry of international brands and retailers as well as focus on technology, operations,
infrastructure and processes. All these present a tremendous opportunity in this high growth industry.
Yuvarani (2010) opines that according to a study the size of the Indian Retail market
is currently estimated at Rs 704 corers which accounts for a meager 3% of the total retail market. As
the market becomes more and more organised the Indian retail industry will gain greater worth.
However, the future is promising, the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations.
Biyani (2007) describes that we are on the cusp of change wherein a huge, multicultural India
is transforming from a socialist economy to a consumption-led, creative economy. The scope
and depth of change that is taking place due to the revolutionary retail market with a gigantic
opportunity for marketers and retailers, not only in large cities but also in small towns. So
retailing can play a significant role in creating the India of tomorrow.
Kearney (2007) explains that the retail sector provides a unique platform to India
.Government, both central and state, need to engage with the sector and utilise its potential for social
development. So the Indian market and its consumers poised for a retail consumption explosion that
will continue for future.
Indias sunrise retail sector is witnessing a major transformation as traditional markets make
way for modern and indigenously development retail formats. Standing on the threshold of a
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retail revolution and witnessing a fast changing retail landscape. Indian retail is still growing, and
growing at an enviable rate. In the new era of liberalisation, there exists immense opportunities
for retail business .Progressive policies, economic and political stability ,liberal policies on
technology, changing consumers profile and demographic character, increasing urbanisation,
improved infrastructure, increasing number of nuclear families ,increasing working women population
are new opportunities. Bulging of middle and upper middle classes, whose purchasing power is
now substantial and turning Indian economy as the fourth largest economy in the world in
terms of purchasing power, are opportunities galore for giving further boost to retail business in India.
Objective of the Study

This research tries to analyse consumer preference towards organised retailing. In line with
this primary objective the other objectives are to have an understanding of why the consumer prefers
organised retailing vis-a-vizunorganised retailing, identify the factors influencing the consumers to
prefer organised retailing, measure their level of satisfaction and the analyse the distinct features of
organised retail outlets.
Scope and Significance of the Study

This research will help the organised retail outlets to know about their customers and the
reputation of their outlet in the market. It can be used to know about the organised retail pattern and
helps the customers to know about the benefits in organised retailing. It also tells us about the value of
each and every customer who are coming to the outlet with trust and the purpose for which the
customers prefer the organised retailing for their purchase.
This research will highlight why the consumers prefer organised retail outlets, and individuals
attitude towards purchasing from such outlets. Thus based on this research suitable steps can be taken
to improve the organised retailing methods and reduce the problems faced due to the defection of
customers.
Research Methodology
The research design followed is Descriptive Research. The research instrument used for the
study is a structured questionnaire. Due to time, expenses and practical constraints the sample size was
limited to 75 customers. The respondents were selected through a convenience sampling.
Analysis
Sample Demographics
The demographics of the sample have been depicted in the following table.
Table 1 Demographics of the respondents
Gender Frequency Percent
Male 44 58.7%
Female 31 41.3%
Age Frequency Percent
15-25 24 32
26-40 27 36
41-60 17 22.7
Above 60 7 9.3
Family expenses p.m. Frequency Percent
Rs.5000-10000 14 18.7
Rs.10000-15000 27 36
>Rs.15000 34 45.3
This research includes 58.7% of the respondents who are males and 41.3% females. 32% of
the respondents are age group between 15 -25. 36% of the respondents are age group of between 26-40
years. 22.7% of the respondents are in the age group of between 41-60 and 9.6% of the respondents
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fall in the above 60 years category. 18.7% of the respondents family expense are between Rs.5000-
10000 per month. 36% of the respondents family expenses are between Rs.10000-15000 per month
and 45.3% of the respondents family expenses are above Rs.15000 per month.
Preference for type of organised retail outlets with reasons for the same
Table 2 given below indicates the preference of the respondents with respect to the type of
organised retail outlet together with the reasons for the same. It also gives the details of the type of
media which has influenced respondents in making the above choice.
Table 2 Preference for type of organised retail outlets with reasons for the same
Preferred outlet of respondents Frequency Percent
Grocery outlets E 17.4
Super market 37 49.3
Departmental stores 25 33.3
Percent
Factors Influencing choice of outlet
Frequency
Service 9 12
Quality 24 32
Discount 11 14.7
Brand image 31 41.3
Percent
Type of Media influencing choice
Frequency
TV 41 54.7
Magazine 11 14.7
Newspaper 23 30.6
17.4% of the respondents are preferring grocery outlets for their purchase. 49.3% of the
respondents prefer Super market and 33.3% of the respondents prefer Departmental stores. 12% of the
respondents says that the unique character of Big Bazaar is service. 32% of the respondents say product
availability.
14.7% of the respondents say discount and 41.3% of the respondents say brand image. 54.7%
of the respondents say that TV is the major media influenced them to prefer organised retail outlet for
their purchase.14.7% of the respondents say magazine and 30.6% of the respondents say Newspaper
respectively.
Aspects of organised retail outlets which attract customers

Table 3 given below indicates the reasons for respondents to prefer retail outlets, opinion on
prices and frequency of visits made.
Table 3 Aspects of organised retail outlets which attract Customers
Reasons for preferring Organised retail outlets Frequency Percent
Usage of credit cards 16 21.3
One time purchase 20 26.7
Product availability 39 52.0
Pricing Strategy Frequency Percent
Very high 9 12.0
High 13 17.3
Neutral 14 18.7
Low 39 52.o
Influence of location Frequency Percent
Yes 55 73.3
No 20 26.7
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Availability of products Frequency Percent
Excess 26 34.7
In demand 24 32
Moderate 15 20
Poor 10 13.3
Frequency of visits made Frequency Percent
Weekly 27 36
Every month 31 41.3
Twice in a month 17 22.7
21.3% of the respondents prefer the organised retail outlets for easy usage of credit cards.
26.7% of the respondents prefer for one-time purchase and 52% of the respondents prefer for product
availability. 12% of the consumers say that price level is very high in organised retail outlet, 17.3% say
that it is high, 18.7% of them were neutral and 52% majority of them say the price level is very low .
73.3% of the respondents say that location acts as a main factor for organised retail outlets and 26.7%
of the respondents oppose it.
34.7% of the respondents says that the availability of products is excess. 32% of the
respondents say in demand. 20% of the respondents say moderate and 13.3% of the respondents say
poor. 36% of the respondents are visiting organised retail outlets every week for their purchase. 41.3%
of the respondents are purchasing once in a month and 22.7% of the respondents are purchasing twice
in a month.
Level of satisfaction
The level of satisfaction as given by the respondents is given below :
Table 4 Level of satisfaction
Satisfaction level Frequency Percent
Highly satisfied 23 30.7
Satisfied 31 41.3
Moderate 15 20
Dissatisfied 4 5.3
Highly dissatisfied 2 2.7
30.76% of the respondents are highly satisfied, 41.3% of the respondents are satisfied. 20% of
the respondents are in moderate state. 5.3% of the respondents are dissatisfied and 2.7% of the
respondents are highly dissatisfied.
Gaps in Service
Table 4 given below elaborates on additional amenities which respondents would like to enjoy
when they visit the organised retail outlets.
Table 5 Additional amenities desired by the respondents
Gaps in Service Frequency Percent
Play station 17 22.7
Food court 52 69.3
Small park 6 8
22.7% of the respondents say that play station should be added has one of the additional feature. 69.3%
of the respondents say Food court and 8% of the respondents say Small Park.
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Ms. A.Jayanthi MBA, M.Phil, PGDCA, (PH.D, Assistant Professor,Department of Management
Sciences, D J Academy for Managerial Excellence,Coimbatore -641032
ABSTRACT
CRM stands for customer relationship management and helps the management and customer
service staffs cope with customer concerns and issues. CRM involves gathering a lot of data about the
customer. The data is then used to facilitate customer service transactions by making the information
needed to resolve the issue or concern readily available to those dealing with the customers. This
results in more satisfied customers, a more profitable business and more resources available to the
support staff. Furthermore, CRM Customer Relationship Management systems are a great help to the
management in deciding on the future course of the company.
As mentioned, there is much data needed for the CRM system to work. These fields include
the customer name, address, date of transactions, pending and finished transactions, issues and
complaints, status of order, shipping and fulfillment dates, account information, demographic data and
many more. This information is important in providing the customer the answer that he or she needs to
resolve the issue without having to wait for a long time and without going to several departments. With
just a few mouse clicks, a customer support representative for example can track the location of the
customer's package or order. This is infinitely better than the cumbersome process of tracking
shipments previously. Furthermore, the customer service representative will also be able to see the
previous concerns of the customer. This is a great help especially if the customer is calling about the
same issue since he or she will not have to repeat the story all over again. This results in less time in
resolving the issue, thus, higher productivity of the support staff.CRM Customer Relationship
Management systems are also important to the top management because it provides crucial data like
customer satisfaction and efficiency of service by the frontline crews. A piece of customer relationship
management software will also be able to generate the needed reports for product development or new
concepts. Furthermore, this system will also be a great help for the top management in deciding the
company's future course of action, whether it involves phasing out one of the products on the shelves or
making adjustments to one of the products sold.The reports generated by CRM systems are also
invaluable to your advertising and marketing planners, as they will be able to pinpoint which ideas
works and which do not. Because of CRM systems, you will be able to release advertisements or plan
marketing campaigns more in tune with your target market. This will also lead to more responses to
your advertisement and a more effective marketing campaign.

CRM, or Customer relationship management, is a number of strategies and technologies that
are used to build stronger relationships between companies and their customers. A company will store
information that is related to their customers, and they will spend time analyzing it so that it can be
used for this purpose.
REVIEW OF LITERATURE:
Until recently, most marketers focused on attracting customers from its target segments using
the tools and techniques developed for mass marketing in the industrial era. In the information era, this
is proving to be highly ineffective in most competitive markets.
Slowing growth rates, intensifying competition and technological developments made

businesses look for ways to reduce costs and improve their effectiveness. Business process
reengineering, automation and downsizing reduced the manpower costs. Financial restructuring and
efficient fund management reduced the financial costs. Production and operation costs have been
reduced through Total Quality Management (TQM), Just in Time (JIT) inventory, Flexible
Manufacturing Systems (FMS), and efficient supply chain management. Studies haves hown that while
manufacturing costs declined from 55% to 30% and management costs declined from 25% to 15%, the
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marketing costs have increased from 20% to 55% (Sheth,1998). The practice of relationship marketing
has the potential to improve marketing productivity through improved marketing efficiencies and
effectiveness (Sheth and Parvatiyar,1995).
Still relationship marketing appears to be an expensive alternative to firms practicing mass

marketing due to the relatively high initial investments. Firms would adopt relationship marketing only
if it has the potential to benefit them. The benefits come through lower costs of retention and increased
profits due to lower defection rates (Reichheld and Sasser, 1990).When customers enter into a
relationship with a firm, they are willingly foregoing other options and limiting their choice. Some of
the personal motivations to do so result from greater efficiency in decision-making, reduction in
information processing, achieving more cognitive consistency in d ecisions and reduction of perceived
risks with future decisions (Sheth&Parvatiyar, 1995).
In the context of service, relationship marketing has been defined as attracting, maintaining
and in multi-service organizations enhancing customer relationships (Berry 1983). Here attracting
customers is considered to be an intermediary step in the relationship building process with the ultimate
objective of increasing loyalty of profitable customers. This is because of the applicability of the 80-20
rule. According to Market Line Associates, the top20% of typical bank customers produce as much as
150% of overall profit, while the bottom20% of customers drain about 50% from the bank's bottom line
and the revenues from therest just meeting their expenses.
STATISTICS:
In 2003, a Gartner report estimated that more than $1 billion had been spent on software that
was not being used. More recent research indicates that the problem, while perhaps less severe, is a
long way from being solved. According to CSO Insights, less than 40 percent of 1,275 participating
companies had end-user adoption rates above 90 percent]Additionally, many corporations only use
CRM systems on a partial or fragmented basis, thus missing opportunities for effective marketing and
efficiency.In a 2007 survey from the U.K., four-fifths of senior executives reported that their biggest
challenge is getting their staff to use the systems they had installed. Further, 43 percent of respondents
said they use less than half the functionality of their existing system; 72 percent indicated they would
trade functionality for ease of use; 51 percent cited data synchronization as a major issue; and 67
percent said that finding time to evaluate systems was a major problem. With expenditures expected to
exceed $11 billion in 2010, enterprises need to address and overcome persistent adoption challenges.
The amount of time needed for the development and implementation of a customer relationship
management system can prove costly to the implementation as well. Research indicates that
implementation timelines that are greater than 90 days in length run an increased risk in the CRM
system failing to yield successful results
Rules For Good Customer Service

Good customer service is the lifeblood of any business. Good customer service is all about
bringing customers back. And about sending them away happy - happy enough to pass positive
feedback about your business along to others, who may then try the product or service you offer for
themselves and in their turn become repeat customers.
1) Answer your phone.

Get call forwarding. Or an answering service.Hire staff if you need to. But make sure that
someone is picking up the phone when someone calls your business. (Notice I say "someone". People
who call want to talk to a live person, not a fake "recorded robot".) For more on answering the phone,
see Phone Answering Tips to Win Business.
2) Don't make promises unless you will keep them.

Not plan to keep them. Will keep them. Reliability is one of the keys to any good relationship,
and good customer service is no exception. If you say, Your new bedroom furniture will be delivered
141
on Tuesday, make sure it is delivered on Tuesday. Otherwise, don't say it. The same rule applies to
client appointments, deadlines, etc.. Think before you give any promise - because nothing annoys
customers more than a broken one.
3) Listen to your customers.

Is there anything more exasperating than telling someone what you want or what your
problem is and then discovering that that person hasn't been paying attention and needs to have it
explained again? From a customer's point of view, I doubt it. Can the sales pitches and the product
babble. Let your customer talk and show him that you are listening by making the appropriate
responses, such as suggesting how to solve the problem.
4) Deal with complaints.

No one likes hearing complaints, and many of us have developed a reflex shrug, saying, "You
can't please all the people all the time". Maybe not, but if you give the complaint your attention, you
may be able to please this one person this one time - and position your business to reap the benefits of
good customer service.
5) Be helpful - even if there's no immediate profit in it.

The other day I popped into a local watch shop because I had lost the small piece that clips the
pieces of my watch band together. When I explained the problem, the proprietor said that he thought he
might have one lying around. He found it, attached it to my watch band and charged me nothing!
Where do you think I'll go when I need a new watch band or even a new watch? And how many people
do you think I've told this story to?
CONCLUSION:
Every one has his or her own stories about poor customer service and emails sent to
companies without hearing a response. Despite several years of experience, Web-based companies still
did not fulfill many Christmas orders in 2000 and customers continue to have difficulties returning
unwanted or defective products. We can expect that the technologies and methodologies employed to
implement the steps shown in Exhibit 1 will improve as they usually do. More companies are
recognizing the importance of creating databases and getting creative at capturing customer
information. Real-time analyses of customer behavior on the Web for better customer selection and
targeting is already here (e.g., Net Perceptions) which permits companies to anticipate what customers
are likely to buy. Companies will learn how to develop better communities around their brands giving
customers more incentives to identify themselves with those brands and exhibit higher levels of loyalty.
One way that some companies are developing an improved focus on CRM is through the establishment
or consideration of splitting the marketing manager job into two parts: one for acquisition and one for
retention. The kinds of skills that are need for the two tasks are quite different. People skilled in
acquisition have experience in the usual tactical aspects of marketing: advertising, sales, etc. However,
the skills for retention can be quite different as the job requires a better understanding of the
underpinnings of satisfaction and loyalty for the particular product category. In addition, time being a
critical scarce resource makes it difficult to do an excellent job on both acquisition and retention. As a
result, some companies have appointed a chief customer officer (CCO) whose job focuses only on
customer interactions.
REFERENCES
Gruen, T. W. (1997), Relationship Marketing : The Route to Marketing Efficiency and Effectiveness,
Business Horizons, November December, pp. 32-38.
Berry, L. L. (1983), Relationship Marketing of Services : Growing Interest, Emerging Perspectives,
Journal of the Academy of Marketing Science, Vol. 23, No. 4, pp. 236-245.
Parasuraman, A., Zeithaml, V. A., and Berry, L. (1985), "A Conceptual Model of Service Quality and
its Implications for Future Research," Journal of Marketing, Fall, pp. 41-50.
142
Payne, A. (2000), Relationship Marketing : The UK Perspective, in Sheth, J. N. and Parvatiyar, A.
(eds.) Handbook on Relationship Marketing, Sage Publications, Inc.: New Delhi,pp. 39-68.
Reichheld, F. F. and Sasser, W. E. (1990), 'Zero Defections : Quality Comes to Services',Harvard
Business Review, September October, pp. 105-111.
Sheth, J. N. (1998, June), Creating Value through Relationship Marketing: A New Business Model,
Paper presented at the 1998 Conference on Relationship Marketing: Creating
Partnerships that Enrich Customer Value and Boost Marketing Productivity, Atlanta, GA.
Sheth, J. N. and Parvatiyar, A. (1995) Relationship Marketing in Consumer Markets:
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BUILDING SUCCESSFUL INDIAN RETAIL BRANDS
Dr.R.Karuppasamy, Director- SNS College of Engineering, Coimbatore
Mr.N.Ramesh Kumar MBA., (Ph.D), Research Scholar, Asst. Professor, Nehru College of
Management, Coimbatore.
ABSTRACT
Purchasing power of Indian urban consumer is growing and branded merchandise in
categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly
becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers
need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay
more attention to the brand building process. The emphasis here is on retail as a brand rather than
retailers selling brands. The focus should be on branding the retail business itself. In their
preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of
building their own stores as brands to reinforce their marketing positioning, to communicate quality as
well as value for money. Sustainable competitive advantage will be dependent on translating core
values combining products, image and reputation into a coherent retail brand strategy.
Building Successful Indian Retail Brands

The Global Retail Scenario
Large format retail businesses dominate the retail landscape in the United States and across
Europe, in terms of retail space, categories, range, brands, and volumes. Indian retail industry cannot
hope to learn much by merely looking at the Western success stories in retail. Their scales of operations
are very huge, the profit margins that they earn are also much higher and they operate in multiple
formats like discount stores, warehouses, supermarkets, departmental stores, hyper-markets,
convenience stores and specialty stores.. The economy and lifestyle of the West is not in line with that
of India and hence the retailing scene in India has not evolved in the same format as the West nor
can we learn valuable lessons from their style of operations.
Geographic saturation
The end of the nineties has signified a turning tide of retailer power. The limit to retail
ambition is geographic saturation. There is already a fear that the U.S is over-malled, that available
shopping space exceeds customer demand for products. The retailer logic that if we build new stores
they will come, is being belied. Many retailers have started postponing their store expansion plans.
The track record of some of their international store expansions is also not promising.
Category killer competition

The threat of saturation is accompanied by a new competition from the low cost category
killers. Specialist competition is eating away at the market share and forcing down the prices and gross
margins of the multiple chains. The success of the giant killers in the toys segment Toys R Us and in
home furnishings Home Depot, in the are a case in point.
Alternative shopping channels.

The newest retail format that is showing growth in the U.S., and is more frightening for
retailers than for consumers, is the Internet. The potential for on-line shopping which is growing in the
U.S. questions retailers investments in more physical sites and stores and makes it imperative that they
too explore the new agenda of E-retailing or e-tailing.
The Indian Retail Scene

India is the country having the most unorganized retail market. Traditionally it is a familys
livelihood, with their shop in the front and house at the back, while they run the retail business. More
than 99% retailers function in less than 500 square feet of shopping space. Global retail consultants
KSA Technopak have estimated that organized retailing in India is expected to touch Rs 35,000 crore
in the year 2005-06. The Indian retail sector is estimated at around Rs 900,000 crore, of which the
144
organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is
lying in the waiting for the consumer-savvy organized retailer.
What are the fundamental characteristics of a brand?

While a myriad of characteristics have been catalogued by several researchers on this subject,
five characteristics deserve mention:
(1) Recognizability: A true brand is instantly recognized and identified. The brand name passes into
every day use (Nikes Just do it) or becomes satirized (Dont be such a Duracell) or appropriated
(Make a Xerox of this document). Indian retailers like Shoppers Stop, the RPG Groups Food World
and Music World have already earned national recognition. Subiksha in Tamilnadu and Margin Free
supermarkets in Kerala are household names in the two states.
(2) Meaning, story, value: This is the second characteristic of a brand. The brand must have a value
proposition. It must stand for something and one of the most effective ways is to have a story to
transmit those values. Examples abound of effective leaderships that have helped to build corporate
brand values in other sectors, but few retailers have succeeded in building a story to carry brand
meaning. When they do so, their power will increase.
(3) Legitimacy: The meaning of the brand should be obviously appropriated by the target customer
group. Legitimacy rests on authority, earned by the brand and granted by the customers. Lessons can be
learned from social organizations like Greenpeace, Medicins sans frontiers, CRY and Helpage India. In
this case, legitimacy rests on moral authority. In retail businesses it may rest on an emotional authority
(a unique shopping experience, a store filled with warmth and friendliness.)
(4) Consistency, alignment: A brand story should contain no internal contradictions and should be
appear to be consistent over time. It should be applicable across the business and attempt at total brand
integration.
(5) Proximity: The brand building process should culminate with assuring the brands proximity to the
consumer. The brands definition gets expanded by opening stores in a number of locations to make it
convenient to the consumer.
Motivating the staff to volunteer value: The quality of in-store service is a key factor inDifferentiating
the retailer and winning a higher share of customer spend. In one survey, shoppers were asked, would
they ask for the same salesperson on their next purchase visit; the yes respondents were found to
more likely give the store a 8-10 rating. On theother hand, shoppers unhappy with the salesperson gave
the store a very low performanceon overall service and performance. Staff must be trained and
motivated to recognize their best customers and to offer them superior service.
Successful retailing has always been said to be, about getting the nitty-gritty right of
merchandising, forecasting, the supply chain, training and recruitment of high quality personnel and
category management. Building retail brands that offer value will, in future, overshadow all these areas,
and emerge as the dominant reason for the success of the organized Indian retailer. Indian retailers
should also understand that the retail experience has become a popular leisure activity and they are
vulnerable to any new competition for customers entertainment. Indian retailers must build their
brands with images that seek to entertain and involve their customers. It is the quality and value of
theretail brands that they have sought to establish that will determine the loyalty of the retailshopper in
future.
145
AN EMPIRICAL ANALYSIS ON FACTOR INFLUENCING THE PURCHASE
BEHAVIOUR OF BEVERAGE PRODUCTS BY THE CONSUMERS IN SALEM DT.
P.Arun, Research Scholar, BSMED, Bharathiar university, Coimbatore, Tamilnadu, India
ABSTRACT
In Tamil nadu purchase pattern of consumer is differed largely depend upon there income
level, educational background & cultural background. Many new companies are lunching new products
& also well established companies like HUL, ITC companies are also established themselves by
lunching new beverage products to capture consumers. The main reason behind is changing consumers
behaviour. Economically consumers are influenced largely especially in Tamilnadu. Since if we
compare the income level of consumers & price of the beverage products the income level of consumer
is constant but price is increasing largely day by day. Due to economic circumstances consumer are
also like to purchase products with some offer & discounts etc. Present study helps to get clear picture
of purchase pattern of consumers.
INTRODUCTION
In Tamil nadu purchase pattern of consumer is differed largely depend upon there income
level, educational background & cultural background. Many new companies are lunching new products
& also well established companies like HUL, ITC companies are also established themselves by
lunching new beverage products to capture consumers. The main reason behind is changing consumers
behaviour. Economically consumers are influenced largely especially in Tamilnadu. Since if we
compare the income level of consumers & price of the beverage products the income level of consumer
is constant but price is increasing largely day by day.
Due to economic circumstances consumer are also like to purchase products with some offer
& discounts etc.Present study helps to get clear picture of purchase pattern of consumers.
SCOPE OF STUDY
The present study is confined to Salem dt and the following familiar brands have been
selected such as Horlicks, Boost, Complane and Bournvita by considering their market share. It is an
empirical study which is primarily concerned with factor influence of beverage product consumers.
This study also extends to analyze the purchase preference of beverage product consumers and the
problems faced by consumers of beverage products.
OBJECTIVES OF STUDY
1.To find out factors determining the purchase behaviour of beverage products
2.To measure the significant of demographic variables on shopping behaviour of consumers
HYPOTHESIS OF STUDY
Hypothesis 1
H0: There is no significant difference between advertisement conscious and influence of Various
factors on buyers.
Ha: There is a significant difference between advertisement conscious and influence of Various factors
on buyers.
Hypothesis 2
H0: There is no significant difference between Loyalty conscious and influence of Various factors on
buyers.
Ha: There is a significant difference between Loyalty conscious influence of Various factors on
buyers.
146
Hypothesis 3
H0: There is no significant difference between price conscious and influence of Various factors on
buyers.
Ha: There is a significant difference between price conscious influence of Various factors on buyers.
Hypothesis 4
H0: There is no significant difference between Advice conscious and influence of Various factors on
buyers.
Ha: There is a significant difference between advice conscious influence of Various factors on buyers.
METHODOLOGY OF STUDY
Choice of Statistical Analysis Techniques:
Factor Analysis: The various variables that denote the product attributes that determine the purchasing
decision can be actually factored using factor analysis. This factoring of the variables helps in easily
studying the consumer behaviour.
Multidiscriminant function analysis:
Sources of Information influencing the Purchase Decision
a) Advertisement
b) Children advice
c) Doctor advice
d) Retailer face value
e) Service quality
f) Price
AREA AND PERIOD OF THE STUDY

The area of the study is confined to Salem District The study was undertaken during the
month of June-July 2011
RESEARCH DESIGN
Secondary data-Websites, journals, textbook have been studies
Primary data-A questionnaire is developed to collect the respondence of consumer
Data collection tools
Tool which is used for collecting the data are internet, previous journals, books etc
Sample design I have chosen sample size of 106 respondence
Type of questions
Closed end questions are used.5 point scaling technique questions were asked.
STATISTICAL TOOLS APPLIED

The primary data collected through interview schedule from 104. The statistical tools such as
Factor analysis, multi-discriminate function analyses were used which are appropriate to this study.

Out of 106 respondent 58% are male respondents, female respondents are about 42%. As for
as marital status of respondent 19.88% of respondents are single, 79.25% of respondents are married,
0.94% of respondents are widow. As for as Education status of respondent 03.78% of respondents are
Doctoral, 51.89% of respondents are post graduate,21.69% of respondents are graduate,11.33% are
high school,8.49 are elementary school. As for as occupation of respondents 61.33 % are professional,
04.71% are Worker 30.18% are business person, 0.94% are retired staff,2.83% are hose wife
147
Table demonstrated the summary of sample demographics
Demographic Profile of Respondents (n=106)
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
Item number percentage
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
Gender
Male 61 58
Female 45 42
Marital status
Single 21 19.88
Married 84 79.25
Widow 01 0.94
Educational status
Elementary school 09 8.49
High school 12 11.33
Graduate 23 21.69
Post graduate 55 51.89
Doctoral degree 04 03.78
Occupation
Professional 65 61.33
Worker 05 04.71
Business 32 30.18
Retired staff 01 0.94
House wife 03 2.83
Place
Salem 25 23.59
Omalur 01 0.94
Mecheri 10 09.44
Mettur dam 33 31.33
Kolatur 37 34.91
FACTOR ANALYSIS
All 14 items of the questionnaire were factor analysed using principle component extraction
with an orthogonal (Varimax) rotation. The number of factors was unconstrained. For the sake of
convergent validity, 0.50 was used as a factor loading cut-off point.
The factor matrix is a matrix of loading and correlations between the variable and factors.
Pure variables have loading of 0.5 and greater or only one factor. Complex variables may have high
loading on more than one factor and they make the interpretation of the output difficulty. The
researcher rotated the components two times to get the significant variables under four factors.
Table no. 1 shows the reliability statistics and proves the data could support 78.6 percentage
reliable to do this analysis. Table no. 2 indicates that the Kaiser-Meyer-Olkin (KMO) measure of
sampling adequacy in the study is 0.717. This is good result, as it exceeds 0.5 Bartletts Test of
Sphericity which is 0.000, meaning that factors that form the variables are adequate.
148
Table 1
REALIABILITY STATISTICS
Cronbach's N of
Alpha Items
0.786 14
Table 2
KMO and Bartletts Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .717
Bartlett's Test of Sphericity Approx. Chi-Square 430.491
Df 91
Sig. .000
TOTAL VARIANCE EXPLAINED

Table 3 depicts the total variance explained. Total variance is explained with rotation, the
Eigen values are different for factor 1,2,3 & 4. The eigen values for factor 1,2,3 & 4 are 2.531, 2.357,
1.876 and 1.725. Percentage of variance for factors 1,2,3 & 4 are 18077, 16.836, 13.397 and 12.320
respectively. It indicates that four factors extract from 14 factors have cumulative percentage up to
60.630% of the total variance. This is pretty good bargain, because the researcher were able to
economize on the number of variables. (From 14 statements, the statements were reduced into 4
underlying factors).
Table 3
TOTAL VARIANCE EXPLAINED
Initial Eigenvalues Extraction Sums of Rotation Sums of Squared
Squared Loadings Loadings
Comp
Tot % of Cumulati Tot % of Cumulati Tot % of Cumulati
o-nent
al Varian ve % al Varian ve % al Varian ve %
ce ce ce
1 3.88 27.779 27.779 3.88 27.779 27.779 2.53 18.077 18.077
9 9 1
2 1.88 13.442 41.221 1.88 13.442 41.221 2.35 16.836 34.913
2 2 7
3 1.53 10.942 52.163 1.53 10.942 52.163 1.87 13.397 48.310
2 2 6
4 1.18 8.467 60.630 1.18 8.467 60.630 1.72 12.320 60.630
5 5 5
5 .939 6.709 67.339
6 .806 5.755 73.094
7 .756 5.400 78.494
8 .647 4.620 83.114
9 .573 4.094 87.208
10 .502 3.588 90.795
11 .439 3.137 93.933
12 .361 2.576 96.509
13 .302 2.158 98.667
14 .187 1.333 100.000
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Rotated Component Matrix
The rotated component matrix is discussed in the following table. After a factor solution has
been obtained, in which all variables have a significant loading on a factor, the researchers attempted to
assign some meaning to the pattern of factor loadings. Variables with higher loadings are considered
more important and have greater influence on the name or label selected to represent a factor.
Researchers examined all the underlined variables for a particular factor and placed greater emphasis
on those variables with higher loadings to assign a name or label to a factor that accurately reflected the
variables loading on that factor. The names or labels are not derived or assigned by the factor analysis
computer programme; rather, the label is intuitively developed by the factor analyst based on its
appropriateness for representing the underlying dimension of a particular factor. All four factors have
given appropriate names on the basis of the variable represented in each case.
Table 4
Component
No. Factors Advertisement Loyalty Price Advice
conscious conscious conscious conscious
1 Advertisement .581
2 Children advice .706
3 Doctors advice .739
4 Retailer face value -.582
5 Packaging .744
6 Brand Image .507
7 Economy .718
8 Promotion .570
9 Service quality .797
10 Offer .871
11 Discount .782
12 Refund .674
13 Rebate .551
14 Price .695
The above table shows the rotated component matrix, in which the extracted factors are
assigning a new naming related together.
a). Factor one is the most important factor which explained 18.077% of the variation. The factors
as advertisement (0.581), Promotion (0.570), offer (0.871), Discount (0.782) and Rebate
(0.551) are highly correlated with each other. These statements reflect advertisement consciousness of
customers using beverage products buying, hence, the researcher names this segment as
advertisement consciousness of customers
b). The second kind of factor explained 18.836% of the variances. In this segment, the
researchers took the four important variables such as Packaging (0.744), Brand image (0.507),
Service quality (0.797) and Refund (0.674). These statements reflected consciousness to brand
loyalty on the part of the buyer i.e., the researcher names these variable as buyers who were conscious
about brand loyalty.
150
c). This factor explained 13.397% of the variations. The statements are Retailer face value
(0.582), Economy (0.718) and Price (0.695). These statements show the price consciousness on the
part of beverage buyers. Hence, the researchers name this segment as Price conscious Customers.
d). The factor explained 12.320% of the variations. The extracted statements are Children
advice (0.706), and Doctors advice (0.739) and these statements indicates that the advice
consciousness on the part of beverage buyers. Hence, the researcher name this segment as Advice
conscious.
SUMMARY OF FINDINGS
First type of customers were names as advertisement, who were enjoying at the shopping
because they thing they advertisement products are having good quality at the shopping place.
Second kind of buyers has been names as brand loyalty. These customers feel that they buy
the good brand image products at the shopping place. This group also believes that they find
items are having good quality at that shopping place.
The third category of customers, named as Price conscious customers, feel that products
are cheaper than traditional outlets. These consumers do not buy costly products.
Finally the fourth category of customers, named as advice conscious customers, feel that
they buy the products with related to children expectation and their doctors advice and hence
they do buy products with getting opinion from their children and doctor.
SUGGESTION:
Price is the key factor which affects the consumers so reduction in prices will affect
consumers in purchase pattern with respect to beverage products Company & whole sellers should not
hide any ting from consumers reg products details, promotion factors etc I helps to increase th
perception of consumers
LIMITATIONS AND FUTURE RESEARCH

This study is conducted in Salem dt only. The sample size is 106.Due to time constrains the
sample size restricted to 106 Future research may consider using multiple samples in different places in
order to have a better representation of the huge population of Salem dt.
CONCLUSION
The present study divided beverage product buyers into four categories. First type of
customers were names as advertisement, who were enjoying at the shopping because they thing they
advertisement products are having good quality at the shopping place. Second kind of buyers has been
names as brand loyalty. These customers feel that they buy the good brand image products at the
shopping place. This group also believes that they find items are having good quality at that shopping
place. The third category of customers, named as Price conscious customers, feel that products are
cheaper than traditional outlets. These consumers do not buy costly products. Finally the fourth
category of customers, named as advice conscious customers, feel that they buy the products with
related to children expectation and their doctors advice and hence they do buy products with getting
opinion from their children and doctor. This study helps that the factors such as advertisement,
brand loyalty. Price Retailer face value, children, doctors, discount highly influence the
consumers as for as beverage purchase pattern of consumers. So it conclude that consumers influenced
by various factors at the time of purchasing beverage product
REFERENCES
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Dibb S., Simkin L., Pride W.M., Ferrell O.C. (1994): Marketing: Concepts and Strategies. 2 Edition,
Houghton Mifflin Co., Boston; ISBN 0-395-66928-6.
Foret M. (2003): Marketingov komunikace (Marketing Communication). Computer Press, Brno;
ISBN 80-7226-811-2.
151
Sheth J.N.. Mittal B., Newman B.I. (1999): Customer Behavior Consumer Behavior and Beyond.
Harcourt Brace College Publishers: The Dryden Press; ISBN 0- 03-098016.
SHOPPING MONITOR. INCOMA (19992002). Research and GfK Prague, CD-ROM.
Statistical Yearbook of the Czech Republic 2004 (2004). Praha; ISBN 80-250-1080-5.
Kotler, Philip (2005) "Marketing Management", Pearson Education (Eleventh Edition).
Day, G.S. (1969). A Two-Dimensional Concept of Brand Loyalty, Journal of Consumer Research 2,
4, 241-258.
Richard I. Levin, David S Rubin(1997). "Statistics for Management", Prentice Hall of India(seventh
edition)
152
FORECASTING IN FASHION MARKETING
Dr.R.Karpagam Associate Professor Professional School of Management Palladam
Mr.A.Mohammed Yasser Arafath Ph.D Scholar Dr.NGP Institute of Management Coimbatore
INTRODUCTION
Fashion
Is a general term for currently popular style or practice, especially in clothing, foot wear or
accessories is called as Fashion.
Fashion is complex phenomenon from psychological, sociological, cultural or commercial

point of view. Fashion trends are the styling ideas that major collections have in common. They
indicate the direction in which the fashion is moving. Fashion forecasters look for styles they think are
prophetic, ideas that capture the mood of the times and signal a new fashion trend.
Fashion Marketing
The making & selling of apparel and accessories those are desirable to consumers is called as
fashion marketing. And a person who does that is called as a Fashion Marketer.
A Fashion marketer generates interest in new styles and products, connecting the public with
the world of fashion there by ultimately promoting fashion. They also analyse and implement sales
strategies, perform inventory control &cost analysis, and stay mindful of profits & losses.
Their core strength is being creative and innovative; being a fashion marketer one should
recognise good clothing when they see it & they should have the ability to sell the same to the public.
Marketing management requires a great deal of fashion sway. Understanding trend cycles, the
ability to read numbers, create projection and possessing an affinity with the targeted consumers are
basic requirements.
Fashion Merchandising
The process of planning, buying and selling of apparel and accessories and its related products
is called as Fashion Merchandising.
Fashion marketers responsibility Factors Affecting Fashion Marketing
Financial factors.(Recession.etc)
Attending fashion show and visiting
designer outlets Current Trend in the movie industry
Merchandising & Warehousing.
Competition from other firms
Visual merchandising
Price rise in the fabric and other items
Pricing clothes used in production
Coming up with proper and unique ad Transportation issues

campaigns and promotions
Consulting with fashion designers & Local Culture and traditions
consumers.
Keeping tabs on profits & losses. Quality of designers employed etc...
Hiring & training new employees.
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The direction of fashion change
Observation is not enough. If the trend watcher is to take advantage, he needs a framework for
explaining how the trend began and its likely path within a social system. The directional theories of
fashion change trickle down trickle up and trickle across to make prediction easier by pointing to the
likely starting points for a fashion trend, the expected direction that trend will take and how long the
trend will last.
Some trend watchers visualize the dynamics of fashion as a pyramid of status level. In some
theories, fashion trickles down from highly visible elite. In others, fashion trickles up from Street once
it is discovered by fashion elite introduced to mainstream audiences in an edited version.
If a fashion look is promoted by the media and manufactured rapidly enough, the look can
trickle across all levels of the market simultaneously for denim, introduction of an unusual colour
range, a modification in a silhouette or detail, a different way to wear an accessory or a mood expressed
in a distinctive style. The pattern of acceptance (or rejection) can be mapped in time
Fashion responds to whatever is modern i.e., to the spirit of the times or the Zeitgeist .People
chooses among competing styles, those that click or connect with the spirit of the times. This
collective selection forms a feedback loop between the fashion industry and the consumer, a feedback
loop moderated by aesthetic trends and social psychological processes.
THE FASHION FORECASTING PROCESS

a) Trend forecasting businesses
French companies based in Paris have traditionally dominated fashion forecasting. Although a
number of larger ones are still based in Paris, many with satellite offices around the world, a number of
new niche forecasters have emerged offering their own specialities of product and services. Some
better known trend forecasters include:
f) Sales forecasting
Forecasting is relatively easy, straightforward and accurate for products with long lifetime and
steady sales. However, the fashion apparel business is one of the most volatile, because it creates
products that are new, highly seasonal or have short lifetimes. In such situations forecasters become
increasingly inaccurate. Errors in sales forecasting result in two kinds of losses:
Markdown when retailers have unwanted goods remaining at the end of a selling period, such goods
then must be sold, even at a loss.
Stock outs - merchandise not available in stock at the time when customers request it.
g) Cultural indicators
In the apparel field, companies need an early system so that specific product categories can be
fine tuned to trends within a market segment. While timing is important, an agile and responsive
company will be able to capitalize on trends whenever the are spotted; sometimes just a glimmer far in
the future and sometimes as a phenomenon in the building stage. Waning trends are another signal.
h) Final stage of forecasting

The fashion look for the season is therefore the result of a process of developments that
combines the evolved views of textiles and products trade show, forecasters, designers, buyers and
ready to wear shows. Like collage, the final picture emerges after various layers have come together.
The media coverage of the shows is another important dimension in the trend development process, as
it highlights fashion trends that fashion editors believe will be strong for the forth coming season. Such
authoritative coverage of the media focusing attention on aspects of fashion, including the must
have looks, colours and products influences the consumers acceptance of hot trends for a season.
154
CONCLUSION
The extensive scale of globalization and liberalization pose a great impact on the Indian
fashion industry. Indian exports from the west have also made it easier for Indians to keep a track on
the latest fashion clothes and accessories ruling the western men and womens wear market.
Thus Indian consumer is evolving and driving retail growth in India and companies in the
fashion industry are reacting to this evolution through myriad options. The fashion market in India is
witnessing strong growth owing to a young population, an increase in disposable incomes, which are
leading to an increase in consumption.
It has already strongly established itself in the developed countries especially Europe. Thus
potential fashion marketers in developing countries have an untapped market ready to be consumed by
the risk taking adventurous youngsters trying to prove themselves to their international counterparts.
155
EMERGING GREEN MARKETING TRENDS
Mrs.C.Indhumathi, Assistant Professor and Ph.D Research Scholar, Department of Commerce,
Karpagam University, Coimbatore 21.
Dr.P.Palanivelu, Professor, School of Commerce and Management, Karpagam
University,Coimbatore21
INTRODUCTION
Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in itself or
produced and/or packaged in an environmentally friendly way.
The obvious assumption of green marketing is that potential consumers will view a product or
service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious
assumption of green marketing is that consumers will be willing to pay more for green products than
they would for a less-green comparable alternative product - an assumption that, in my opinion, has not
been proven conclusively.
Evolution of Green Marketing

The green marketing has evolved over a period of time. According to Peattie (2001), the
evolution of green marketing has three phases.
First phase was termed as "Ecological" green marketing, and during this period all marketing
activities were concerned to help environment problems and provide remedies for
environmental problems.
Second phase was "Environmental" green marketing and the focus shifted on clean technology
that involved designing of innovative new products, which take care of pollution and waste
issues.
Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and
early 2000.
Need for Green Marketing

As resources are limited and human wants are unlimited, it is important for the marketers to
utilize the resources efficiently without waste as well as to achieve the organization's objective. So
green marketing is inevitable.
There is growing interest among the consumers all over the world regarding protection of
environment. Worldwide evidence indicates people are concerned about the environment and are
changing their behavior. As a result of this, green marketing has emerged which speaks for growing
market for sustainable and socially responsible products and services.
Benefits of Green Marketing

Companies that develop new and improved products and services with environment inputs in
mind give themselves access to new markets, increase their profit sustainability, and enjoy a
competitive advantage over the companies which are not concerned for the environment.
Adoption of Green Marketing

There are basically five reasons for which a marketer should go for the adoption of green
marketing. They are
Opportunities or competitive advantage
Corporate social responsibilities (CSR)
Government pressure
Competitive pressure
Cost or profit issues
156
PRESENT TRENDS IN GREEN MARKETING IN INDIA
Organizations are Perceive Environmental marketing as an Opportunity to achieve its
objectives. Firms have realized that consumers prefer products that do not harm the natural
environment as also the human health. Firms marketing such green products are preferred over the
others not doing so and thus develop a competitive advantage, simultaneously meeting their business
objectives. Organizations believe they have a moral obligation to be more socially responsible. This is
in keeping with the philosophy of CSR which has been successfully adopted by many business houses
to improve their corporate image. Firms in this situation can take two approaches:
Use the fact that they are environmentally responsible as a marketing tool.
Become responsible without prompting this fact. Governmental Bodies are forcing Firms to
Become More Responsible. In most cases the government forces the firm to adopt policy
which protects the interests of the consumers. It does so in following ways:
Reduce production of harmful goods or by products
Modify consumer and industry's use and /or consumption of harmful goods;
Ensure that all types of consumers have the ability to evaluate the environmental composition
of goods. Competitors' Environmental Activities Pressure Firms to change their
Environmental Marketing Activities. In order to get even with competitors claim to being
environmentally friendly, firms change over to green marketing. Result is green marketing
percolates entire industry. Cost Factors Associated With Waste Disposal or Reductions in
Material Usage Forces Firms to Modify their Behavior. With cost cutting becoming part of the
strategy of the firms it adopts green marketing in relation to these activities.
THE FUTURE OF GREEN MARKETING

There are many lessons to be learned to be learned to avoid green marketing myopia, the short
version of all this is that effective green marketing requires applying good marketing principles to
make green products desirable for consumers. The question that remains, however, is, what is green
marketing's future? Business scholars have viewed it as a fringe topic, given that environmentalism's
acceptance of limits and conservation does not mesh well with marketing's traditional axioms of give
customer what they want and sell as much as you can. Evidence indicates that successful green
products have avoided green marketing myopia by Following three important principles.
Consumer value positioning

Calibration of consumer knowledge
Credibility of product claim
CONCLUSION
Now this is the right time to select Green Marketing globally. It will come with drastic
change in the world of business if all nations will make strict roles because green marketing is essential
to save world from pollution. From the business point of view because a clever marketer is one who not
only convinces the consumer, but also involves the consumer in marketing his product. Green
marketing should not be considered as just one more approach to marketing, but has to be pursued with
much greater vigor, as it has an environmental and social dimension to it. With the threat of global
warming looming large, it is extremely important that green marketing becomes the norm rather than
an exception or just a fad. Recycling of paper, metals, plastics, etc., in a safe and environmentally
harmless manner should become much more systematized and universal. It has to become the general
norm to use energy-efficient lamps and other electrical goods. Marketers also have the responsibility to
make the consumers understand the need for and benefits of green products as compared to non-green
ones. In green marketing, consumers are willing to pay more to maintain a cleaner and greener
environment. Finally, consumers, industrial buyers and suppliers need to pressurize effects on
minimize the negative effects on the environment-friendly. Green marketing assumes even more
importance and relevance in developing countries like India.
157
ROLE OF ADVERTISING IN AUTOMOBILE BRAND SELECTION
N.Krishnaveni MBA., Research Scholar Mother Teresa Womens University, Kodaikanal.
INTRODUCTION
The essence of being in business by any organization is to produce for sales and profits. In
order to remain in business an organization must generate enough sales from its products to cover
operating costs and post reasonable profits. Taking a decision on sales is the most difficult tasks facing
many business executives. This is because it is difficulty to predict, estimate or determine with
accuracy, potential customers demands as they are uncontrollable factors external to an organization.
Therefore the importance of sales on business survival and the connection between customers and
sales, it is expedient for organizations to engage in programmes that can influence consumers decision
to purchase its products. This is where advertising and brand management are relevant. Advertising is a
subset of promotion mix which is one of the 4ps in marketing mix i.e product, price, place and
promotion. As a promotional mix advertising plays a major tool in creating an awareness in the minds
of potential consumer to a eventual decision.
Definition of advertising
Today advertising has become an integral part of our social and economic structures. An
increasing number of companies are spending millions of dollars on advertising in India every year.
Advertising is defined as The dissemination of information concerning an idea, service or product to
compel action in accordance with the intent of advertiser. American Marketing association defines
advertising as any paid form of non-personal presentation of ideas, goods or service by an identified
sponsor.
Definition of Brand Selection

The American Marketing Association defines a brand as a "name, term, design, symbol, or
any other feature that identifies one seller's good or service as distinct from those of other sellers. The
legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that
seller. If used for the firm as a whole, the preferred term is trade name."
The Brand selection is the process of selecting one brand from a set of alternative brands available.
Introduction of Brand Selection

Consumers buy the brands that seek to separate them from the crowd, by signifying wealth
and status. These can justifiably be called very important brand .In todays materialistic society you
are what you buy. If someone buys a BMW or uses a Louis Vuittons product or checks time using a
Rolex he is trying to distinguish himself from the Ford driving. It is through brands that consumers
seek attention from their peers and friends to satisfy their egos. Therefore, brands act as risk reducing
devices and have become a way of life and expression. A brand becomes immortal because of its long-
term association with the consumers and the emotional appeal it reflects in terms of style, status, and
personality of the targeted consumers.
Introduction about automobile industry

Almost every sector is eying India as a potential investing hub, and automobile sector is no
exception. Besides being still a developing country, it shouldnt be a surprising fact that Indian ranks
world number 3 in terms of the number of millionaires. This era of development in India has been at its
best, despite recession, strong fundamentals of Indian economy have managed to post a decent GDP
growth last year. Increase in disposable income of the people has led to a different lifestyle. Now, the
mindset of Indian consumer is a lot different. Previously, Indian consumers used to check the prices of
everything they bought. Now, the consumer looks at the experience of the company during the buying
process. More than price, Quality matters. This paradigm shift has also changed the way companies
look at India. Slowly and steadily the luxury car market which was in a very nascent condition in India,
is now counting on big revenues from the countrys customers.
158
The Indian automobile industry seems to come a long way since the first car that was
manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the country
contributing majorly to the economy of India. It directly and indirectly provides employment to over 10
million people in the country. The Indian automobile industry has a well established name globally
being the second largest two wheeler market in the world, fourth largest commercial vehicle market in
the world, and eleventh largest passenger car market in the world and expected to become the third
largest automobile market in the world only behind USA and China
With a scintillating 2.3 million units produced in 2008 the Indian automobile industry bagged
the position of being the ninth largest in the world. Following economic liberalization, Indian domestic
automobile companies like Tata Motors Maruti Suzuki and Mahindra and Mahindra expanded their
production and export operations in and across the country and since then the industry has only shown
signs of growth. A recent research conducted by the global consultancy firm Deloitte says that at least
one Indian automobile company will feature among the top six automobile companies that will
dominate the car market by 2020. The Indian automobile industry proved to be in good shape last year
even after the economic downturn. This was majorly due to the fact of renewed interest shown by
global automobile players like Nissan Motors which consider India to be a potential market.
INDIAN AUTOMOBILE EXPORT MARKET
India is a very favorable market for small cars be it production, sales or export. Since the
Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and
Nissan Motors export about 2, 40,000 and 2, 50,000 annually. India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports
registered a 22.30 percent growth in the year 2009. The growth trend was as follows:
- Two Wheelers- 32.31 percent,
- Commercial Vehicle - 19.10 percent and
- Passenger Cars grew by - 19.10 percent.
Increase in disposable income of the people has led to a different lifestyle. Now, the mindset
of Indian consumer is a lot different. Previously, Indian consumers used to check the prices of
everything they bought. Now, the consumer looks at the experience of the company during the buying
process. More than price, Quality matters. This paradigm shift has also changed the way companies
look at India. Slowly and steadily the luxury car market which was in a very nascent condition in India,
is now counting on big revenues from the countrys customers.
2011-12 growth over
SEGMENTS
2010-11 (per cent)
Passenger cars 16-18%
Utility vehicles 12-14%
LCV (goods) 18-21%
MHCV (goods) 10-12%
Commercial vehicles (buses) 8-10%
Motorcycles 11-13%
Scooters 15-17%
Three wheelers (Cargo) 4-6%
Three wheelers (passengers) 10-12%
Automobile Industry 12-15%
159
Role of Advertising
The advertiser primary mission is to reach prospective customers and influence their
awareness, attitudes and buying behaviour. They spend a lot of money to keep individual interested in
their product. There are different media available for advertising like print media, broadcast media, out
door media, internet etc. Each of them has its own advantages and disadvantages. Advertising is an all-
pervasive facet of most growing communities. It has important consequences for the advertisers who
use it and for individuals who are exposed to it.
1. Communication with consumers
Advertising is a major way of establishing communication between manufacturer and other

organization providing services or trying to put ideas and other concepts on the one hand and
customers, buyers and potential acceptors, on the other. Advertising is a reminder to the existing
consumers and it aims at cultivating new prospects as well. Advertising communicates the modification
in the existing product. Now we can the new Maruti Swift with different body style, through
advertising its is communicated to the consumers.
2. Persuasion
It attempts to persuade prospective buyers to buy a product/service. In modern markets, the

producer who is content with advertising that merely identifies or informs may soon find himself in a
vulnerable position.
3. Contribution to Economic growth
It helps to expand the market, particularly for a new product, and helping to develop new
market segments. A company which invests in research and development in order to develop new
product has to depend a great deal on advertising for establishing the market for these product.
4. Catalyst for change
Creativity inherent in advertising leads to the discovery of new relationship that can change
the perception of a prospect. Two aspects are of special significance: the originality of the message
communicated, and the eventual effect on consumers standards of living. The ability to bring about
changes comes from originality, ingenuity, innovation and imagination in advertising. This may be
seen in promoting new product and ideas, as well as in the upgrading of products/ brands used by
consumers. The contribution of advertising in bringing about a change of special relevance to
developing countries
CONCLUSION:
The advertising message must be strong and appealing enough to persuade and build brand
preferences, encourage switching to the companys brand by changing the perception of the consumers
of rival brands the product. Comparative advertising, a variant of persuasive advertising, could be
useful in this regard as it seeks to establish the superiority of one brand through specific comparison
with one or more brands in their product class. The shift in media habits and the importance of
technology has enhanced the role of advertising. To, succeed, they need to understand what makes
potential customers behave the way they do.
160
GLOBAL PRACTICES IN INDIAN BANKING INDUSTRY
L.Meena, Assistant Professor, Department of Management Studies,
Fatima College (Autonomous), Madurai
Introduction
The Indian Banking sector is rapidly globalizing, making it important for Indian Banks to
ensure their practices match with those of the best banks in the world. Indias banking sector is growing
rapidly and is expected to enjoy even greater growth opportunities in the future. Several Indian banks
are pursuing global strategies, as Indian companies globalize and people of Indian origin increase their
investment in India. At the same time, a large number of global banks have stepped up their focus on
India, keen to participate in the sectors growth. Today, the question often asked is: how competitive
are Indian banks and how do the practices at work in these banks compare against global best practices.
Overview of Indian Banking

Modern banking in India can be traced back to the establishment of Bank of Bengal (Jan 1809), the
first joint-stock bank sponsored by the Government of Bengal and governed by the royal charter of the
British India government. Bank of Bombay (Apr 1840) and Bank of Madras (Jul 1843) were the banks
that followed. These three banks, known as the Presidency Banks, marked the beginning of the
limited liability, joint stock banking in India and were vested with the right of note issue. Following
the introduction of the limited liability banking, a few more banks were established, the notable ones
being The Allahabad Bank and The Punjab National Bank. The Swadeshi movement that began in the
early 1890s gave rise to establishment of indigenous joint stock banking companies such as The Bank
of India, The Bank of Baroda, and The Central Bank of India etc. In Jan 1921, the three Presidency
Banks were merged to form the Imperial Bank of India, which had multiple roles and responsibilities
and that functioned as a commercial bank, a banker to the government and a bankers bank. Following
the establishment of Reserve Bank of India in 1935, the central banking responsibilities that the
Imperial Bank of India was carrying out came to an end, making it a commercial bank. At the time of
Independence, the capital and reserves of the Imperial Bank stood at Rs.118 million, deposits at
Rs.2,751 million and advances at Rs.723 million and, while its network included 172 branches and 200
sub-offices spread all over the country. Banking at that time was predominantly based in urban areas.
Following the nationalisation of major banks in 1969 and 1980, the banking network spread
significantly, particularly in the rural and semi-urban areas to pursue social banking activities
primarily aimed at enhancing the well-being of economically disadvantaged sections. Economic
reforms followed by the banking sector reforms of 1991 changed the Indian banks functioning,
making them more stable and stronger.
Structure of Indian Banking (March ended)
Structure of Indian Banking 2002 2003 2004 2005 2006 2007
Number of Commercial banks 297 292 290 289 222 183

a. Scheduled Commercial banks 293 288 286 285 218 179
Public Sector 27 27 27 28 28 28
Private Sector 30 29 30 29 28 25
Foreign Banks 40 36 33 31 29 29
b. Non-Scheduled Commercial Banks 4 4 5 4 4 4
Number of Regional Rural Banks 196 196 196 196 133 96
Number of Bank offices 68195 68500 69170 70373 71177 73836
Of which: Rural 32503 32283 32227 30790 30436 30560
Semi Urban 14962 15135 15288 15325 15811 16434
Urban 11328 11566 11806 12419 13034 13840
Metropolitan 9402 9516 9750 11839 12404 12952
Population per office (Thousands) 15 16 16 16 16 16
161
One of the major outcomes of the banking sector reforms was the strength and soundness it provided
to the system, which made banks adopt prudential norms with respect to capital, income recognition,
disclosure and transparency standards, profitability and productivity. While technology advancements
enabled efficient distribution, competition brought in product innovation and quality customer service.
Today, Indian banking displays robust prospects for growth and compares favourably with other major
banks.
Developments in Indian Banking:

This section summarizes the important policy and regulation measures introduced in Indian
banking in Financial Year 2007.
Monetary Policy
The Reserve Bank of India (RBI) constituted a Technical Advisory Committee on Monetary
Policy in Jan 2007 to advice on and guides the formulation of monetary policy. The monetary policy
formulation during FY07 was based on domestic and global developments with respect to price and
financial stability. Legislative amendments in the RBI Act, 1934 and Banking Regulation Act, 1949
that were envisaged to provide the RBI the operational flexibility and maneouverability in its monetary
management operations also came into effect. In FY07, the Cash Reserve Ratio was hiked by 100
basis points in four equal phases of 25 basis points each. So far, in FY08, it has been further raised by
150 basis points; while the bank rate remained at 6% since 2003.
Credit Delivery
The measures that were taken to augment credit delivery included; increased credit flow to
agriculture, other priority sectors, distressed farmers and areas stricken by natural calamities;
simplification of systems and procedures; permissions for using banking facilitators/ correspondents;
application of information technology to address the last mile problem, and provision of greater
operational flexibility to regional rural banks.
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was notified in Oct
2006 and included the services sector within the purview of micro, small and medium enterprises.
Financial Inclusion was given further focus and thrust under this Act. A pilot project for 100 percent
financial inclusion was launched, under which the convenor banks of State Level Bankers Committees
were advised to identify at least one district in each state/Union territory for achieving 100% financial
inclusion through a no-frills account and by the issue of a general purpose credit card to the customers.
Prudential Regulation
RBI issued final guidelines on the revised capital adequacy framework (Basel II) on 27 Apr
2007, which addressed three types of risk-credit, market and operational risk- for a minimum capital
requirement. The three pillar requirement structure included a minimum capital requirement as the first
pillar, supervisory review as the second and market discipline as the third pillar. Foreign Banks
operating in India and Indian banks having operational presence outside India were expected to
migrate to the revised framework with effect from 31 Mar 2008 and other banks are encouraged to
migrate by 31 Mar 2009. Also, to enable banks to augment their capital levels in the background of
Basel II, banks were allowed to issue innovative perpetual debt instruments, the total amount raised
under which could not exceed 15% of the Tier I capital. In Oct 2007, banks were also allowed to issue
perpetual non-cumulative preference shares as Tier I capital and perpetual cumulative, redeemable
non-cumulative and redeemable cumulative preference shares as Upper Tier II capital.
Banks were advised to design and implement stress-testing framework, using sensitivity and scenario
tests. Guidelines on stress testing were issued by the RBI on 26 Jun 2007. Banks are required to evolve
appropriate stress test policies by 30 Sep 2007.
The RBI issued a set of disclosure requirements pertaining to appropriation of reserves and
segmental reporting. Consequently, from 31 Mar 2008, banks will adopt for public reporting purposes:
(a) treasury, (b) corporate/wholesale banking, (c) retail banking, and (d) other banking operations.
162
The RBI also prescribed limits on bank exposures to individual and group borrowers. Accordingly, the
aggregate exposure of a bank /consolidated bank to the capital market in all forums could not exceed
40% of its net worth as on 31 Mar of the previous year. Guidelines were also issued for computation of
exposure norms for loans and advances against shares. Risk weights for loans to sensitive sectors such
as real estate were revised upwards. The RBI constituted an internal group to review the existing
guidelines on derivatives and formulate comprehensive guidelines on the same by banks. Prudential
norms relating to provisioning were further refined and the guidelines for floating provisions reviewed.
The Committee on Financial Sector Assessment (headed by Dr Rakesh Mohan, Deputy Governor,
RBI), constituted four Advisory Panels for the assessment of (a) financial stability and stress testing,
(b) financial regulation and supervision, (c) institutions and market structures, and (d) transparency
standards.
Payment Systems
The Board for Regulation and Supervision of Payment and Settlement Systems, the apex
body for guiding the policy on payment and settlement systems, met four times in FY07 and stepped
up information dissemination on Real Time Gross Settlement (RTGS), National Electronic Funds
Transfer (NEFT), and Electronic Clearing Service (ECS). The RBI has taken a number of measures to
improve efficiency of both large value and retail payment systems. ECS is now available at 67 centres
in India and National Electronic Funds Transfer is offered by 74 banks in 30,000 branches.
Technology
The RBI has adopted the following steps to help banks expand their range of products and
services and these include negotiated dealing system for government securities, real time gross
settlement system and the centralised funds management system, structured financial messaging
system over the Indian Financial Network (INFINET) and the national electronic funds transfer
system. Furthermore, the multi-application smart cards further assisted financial inclusion in the
North-east and the Southern regions. IT Governance is being given due focus by the RBI.
Global competitive aspects in Indian banking industry:

Indian banks are seen to possess the following global aspects in its recent practices. The
following facts and trends are likely to influence the evolution of the sector in India.
1. Profitability in retail banking deposits:

The profitability of the wholesale banking operations of new private and foreign banks is
much higher compared to incumbents ie., public sector and old private banks that mainly rely on their
valuable legacy retail franchises. Retail banking deposits is today the biggest driver of retail banking
profitability. New private and foreign banks are investing heavily in building large-scale retail
franchises.
2. Tailored offering to customers:

Customer experience is the biggest driver of value. In India customer experience and tailored
offerings will be a big driver of bank profitability as young, affluent customers are more demanding
and discerning and are less credit-averse. New private banks have revolutionalised levels of
convenience and provide customer with superior service levels.
3. Relative superior talents:

Indian banks have historically had access to superior talent relative to other global banks
leading to superior organization performance on average. However, it is well known that incumbents
suffer from a severe lack of specialist skills and new-age leaders. The extent of the problem is acute
and crippling for these banks. They need to act urgently to attract, hire, develop and retain the best
available talent to ensure sustained growth in the long term. While new private banks are doing better
on this front, they will also have to deal with severe talent shortage issues and will need to devise
innovative strategies to continue to attract talent and develop new leaders.
163
4. Treasury divisions - Profit centres:

Treasury is a significant contributor to bank earnings in India. The treasury divisions in Indian
banks are integrated profit centres that manage capital market businesses and credit and market risk, it
is encouraging to see that several new private banks have leapfrogged on this front and are using
sophisticated risk management techniques on par with those implemented by global banks. However,
risk management practices in public sector banks are at a nascent stage and simply conform to
regulatory and compliance measures.
5. Best-in-class IT capabilities:
Indian banks, in particular, new private banks have leveraged the nations IT skills to establish
a competitive advantage. IT has now become a distinctive capability that these banks can successfully
export to international markets as they globalize. Private Banks with best-in-class IT capabilities are
truly the best in the world on account of three factors: the ability to avoid using legacy systems,
superior governance practices that often entail direct CEO involvement, and the India advantage.
However most public sector banks have largely made investments in technologies such as core
banking solutions, but have not fully developed strategies to derive value from these investments, eg.,
leverage these investments to upgrade their levels of customer service.
Conclusion
The Indian Banking industry has shown drastic improvements globally. The banking sector
revolutionized and follows best global practices as discussed above. The major regulatory practices
and policy changes in the Indian market favored banking sector. The challenges that confront banking
industry are alarming and banks, especially new private and foreign banks systematically operate and
take advantage of such situations.
164
CONTEMPORARY ISSUES IN BANKING
M.Hemasundari, Asst. Professor, STET school of Management, Mannargudi.
INTRODUCTION:
Today banking industry plays a crucial role in development of Indian economy. Today with
the growth of private sector banks public sector banks are also facing intense competition. It is time
when banks need to redefine their role.
We have taken this project to study contemporary issues in banking sector. We have taken five
most recent happening issues in banking sector. Bank at home is an issue where banks will try to reach
to our home and will provide personalized service. Under retail business development government
banks will try to cross sell products with traditional banking products to generate more revenues.
Today with the fear of terrorism money of underworld and money obtained through unauthorized
sources can be converted in legal money which is a danger to economy. In cheque truncation RBI Is
aiming at fast clearance of cheques with the use of technology. equator principle is a new concept and
essential when global warming and such other environmental issues occur.
We have studied bank at home model of SBI and proposed RBD plan for SBI and analyzed
remaining topics .our study will be helpful to other students ,SBI ,other banks and to every person who
is associated with banks. We hope our analysis suggestion will be very useful to above mention
entities.
Contemporary and Future Issues in Indian Banking :

Banking scenario has changed rapidly since 1990s. The decade of 90s has witnessed a sea
change in the way banking is done in India. Technology has made tremendous impact in banking.
'Anywhere banking' and 'Anytime banking' have become a reality.
The financial sector now operates in a more competitive environment than before and
intermediates relatively large volume of international financial flows. In the wake of greater financial
deregulation and global financial integration, the biggest challenge before the regulators is of avoiding
instability in the financial system.
Economic outlook and banking sector's performance:

Keeping in mind the impact of real sector shocks on financial stability, any assessment of the
banking sector needs to be done in the backdrop of national as well as international economic outlook.
During the last couple of years, global growth has been above the forecast in almost every region
stimulated by strong monetary and fiscal measures.
The domestic economic outlook is also bright with the real GDP growth rate surpassing 8%
last year and estimated to be around 7% in the current year. Industrial performance also improved
considerably with a strong manufacturing growth for the second consecutive year. Inflation rate has
been under control, barring some hiccup for a short period.
High capital inflows: an opportunity as well as a challenge

As you all know, liquidity position in the financial sector has been quite comfortable in the
recent times. The buoyant capital market coupled with an appreciating rupee vis-is US dollar has been
attracting large foreign institutional inflows during the last two years.
While we have an all time high foreign exchange reserves of more than $130 billion, high
capital inflows pose a big challenge to monetary and exchange rate management. In this context,
operationalisation of Market Stabilisation Scheme (MSS) has given an additional instrument for
liquidity and monetary management.
165
To sum up the challenge, I would like to quote a statement of Dr. Y.V. Reddy, Governor,
Reserve Bank of India, which he made at the annual meeting of Bank for International Settlement
(BIS) on June 28, 2004. And I quote, "...Special defences need to be put in place for ensuring financial
stability in the case of countries like India that are faced with the prospect of volatile capital flows. The
issues relating to cross-border supervision of financial intermediaries in the context of greater capital
flows are just emerging and need to be addressed."
Technology is the key
As I mentioned in the beginning of my speech, technology has thrown new challenges in the
banking sector and new issues have started cropping up which is going to pose certain problems in the
near future. The new entrants in the banking are with computer background. However, over a period of
time they would acquire banking experience.
Whereas the middle and senior level people have rich banking experience but their computer
literacy is at a low level. Therefore, they feel the handicap in this regard since technology has become
an indispensable tool in banking.
Under WTO India, as you know, is one of the 104 signatories of Financial Services
Agreement (FSA) of 1997. This gives India's financial sector including banks an opportunity to expand
their business on a quid pro quo basis.
Indian Banks at the global stage: A Reality check

As per Indian Banks' Association report 'Banking Industry Vision 2010', there would be greater
presence of international players in Indian financial system and some of the Indian banks would
become global players in the coming years.
So, the new mantra for Indian banks is to go global in search of new markets, customers and
profits. Let us not forget that the competition is not only on foreign turf but also in the domestic field
as well from foreign banks operating in India.
Now against these lofty objectives of Indian banks going global, let us see where we stand.
Although, Indian banks have also made their presence overseas, yet it is limited. Only twenty Indian
banks including private sector banks appear in the list of "Top 1000 World Banks" as listed by the
London based magazine "The Banker". What is even more revealing is that State Bank of India, India's
largest bank, ranks 82nd amongst the top global banks.
Size is increasingly becoming important for the global banks, as it is crucial to improved
efficiency. However, India's largest bank, SBI is not even a 10th in size of the 9th largest bank,
Sumitomo Mitsui, which has assets of $950 billion as against SBI's assets of $91 billion. Therefore, the
notion that SBI or ICICI Bank can compete in the international arena seems far-fetched at the moment.
All these factors give Indian banks much needed confidence for overseas operations. But as I said
earlier overseas operations is one thing and competing against the global players in the international
market is quite another. And Indian banks have a lot of catching up to do before they can emerge as
truly global players.
Supporting Regulatory Framework

Supporting institutional and regulatory framework at home is vital for domestic banks aspiring
for global operations. RBI has suitably changed the country's regulatory framework from time to time
to support Indian financial institutions to withstand the competitive pressures placed on them by
increasing globalization.
166
Proper steps have been taken to guide the banking sector to see that the banks pass through this
transition phase by and large successfully. The reforms initiated in the banking sector have now
reached a crucial stage. Government's stake in some PSBs is reduced and as a consequence public
equity in these PSBs is enlarged. This led to greater responsibility on the bank managements since the
level of accountability has increased. Pressures of performance and profitability will keep them on their
toes all the time as the public shareholders expect good performance along with good returns on their
equity. Many PSBs have already started the exercise of cleaning up of their balance sheets by shedding
the excess baggage.
Consolidation and move towards Universal Banking

We are slowly but surely moving from a regime of "large number of small banks" to "small
number of large banks." The new era is going to be one of consolidation around identified core
competencies. Mergers and acquisitions in the banking sector are going to be the order of the day.
Successful merger of HDFC Bank and Times Bank earlier and Stanchart and ANZ Grindlays three
years ago has demonstrated that trend towards consolidation is almost an accepted fact. We are also
looking for such signs in respect of a number of old private sector banks, many of which are not able
to cushion their NPAs, expand their business and induct technology due to limited capital base.
Consolidated accounting and supervisory techniques would have to evolve and appropriate
firewalls built to address the risks underlying such large organisations and banking conglomerates.
Conclusion
Currently, the focus is rightly shifting to legislation, markets, technology and beyond banks to
non-banks. It is also evident that reforms can succeed only and only if coordinated efforts are made by
RBI, Government of India and banks, themselves. It must, however, be recognized that key to
financial sector reform is banking reform; key to banking reform is public sector banking reform; and
key to public sector banking sector reform is Government's initiative
167
FINANCIAL MARKETS INTEGRATION IN INDIA
B.Alagarsamy, Asst.Professor, St.Michael College of Engg.& Tech, Kalayarkoil, Sivagangai Dt
C.Prabu, Asst.Professor, St.Michael Collegeof Engg & Tech., Kalayarkoil 630 551, Sivagangai Dt.
Introduction
The last two decades have witnessed the emergence of a vast financial market straddling
national boundaries enabling massive cross-broder capital flows from those who have surplus funds
and are in search of high returns to those seeking low-cost funding. The phenomenon of borrowers,
including governments, in one country accessing the financial markets of another is not new; what is
new is the degree of mobility of capital, the global dispersal of the finance industry and enormous
diversity of markets and instruments which a firm seeking funding can tap.
While opening up of the domestic markets began only around the end of seventies, a truly
international financial market had already been born in mid-fifties and gradually grown in size and
scope during sixties and seventies. This is the well known Eurocurrencies Market wherein a borrower
(investor) from country A could raise (place) fund in currency of country B from (with) financial
institution located in country
Following the liberalization of international financial markets in the mid 1970s there have
been a series of major financial crises, many of which have resulted in substantial losses in real income.
The Swedish bank crisis of the early 1990s bequeathed nearly a decade of stagnation, as did the
Mexican financial crisis of the early 1980s. More recently, the Asian financial crisis has been
associated with large cuts in real income in the region, with particularly severe consequences for
Indonesia.
The pattern of crises has also assumed a form unfamiliar since the 1930s their origins have
been increasingly found within the private sector. For many years after the second world war economic
crises were associated with mistakes in government macro-economic policies, and derived from the
macro-economic problems such as excessive inflation or current account imbalances, and transmitted
through macro-economic variables such as the interest rate, changes in credit controls or taxation, or
foreign exchange crises (typically resulting in deflationary policies to maintain fixed exchange rates).
This was a significant change from the inter-war world, where crises were typically generated in the
private sector failures by institutions such as that of the Credit Anstalt in 1931 reverberated through
the financial system to produce a general economic collapse. The removal of the extensive system of
domestic and international financial and monetary controls that characterised the post-world war II
world before 1971 has resurrected the pre-war origins of crises in micro-economic as well as macro-
economic circumstances. Nonetheless, even where crises have micro-economic origins an important
macroeconomic component remains.
Rapid expansion of government security market, 12,000 crs in 1991-92 to 99630 cr in 1999-
2000 and 2,00 198 cr in 2006-07 secondary market of gilt edge securities has also been increased to
5,01808 in 2007-08. Prior to 1991 debentures were popular and constituted 70 percent of the funds
raised through new issues. Which has now been changed qualitatively as in 2007 the contribution of
share capital in total fund raised was 87.6 percent.
The instrument of the money market are commercial paper, factoring, bills discounting, call
money etc. and the capital market are shares, debentures and loans. Indian Stock Markets are one of the
oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in
India are meagre and obscure. The East India Company was the dominant institution in those days and
business in its loan securities used to be transacted towards the close of the eighteenth century.
168
MONEY MARKET
Market for short-term debt securities, such as bankers acceptances, commercial Paper,
bonds, negotiable certificates of deposit, and Treasury Bills with a maturity of one year or less and
often 30 days or less. Money market securities are generally very safe investments which return a
relatively low interest rate that is most appropriate for temporary cah storage or short-term time
horizons. Bid and ask spreads are relatively small due to the large size and high liquidity of the market.
Money Market Services

Is this right for you?
Treasury Group provides you with up to the minute information on market rates, and promptly
and efficiently executes buy and sell orders. The wide variety of foreign exchange, money market and
risk management products allows you access to a wide range of tools and information from one source.
Domestic Money Market

We invest money in the Canadian Money Markets. This service provides daily Money Market
requirements for both borrowers and investors. Up-to-the-minute information and advice is offered on
differentials, Money Market trends and market psychology.
Investments include:
Government of Canada Treasury Bills
Provincial Treasury Bills
Provincial Promissory Notes
Term Deposit Receipts
Banker's Acceptances
Canadian Commercial Paper
Swap deposits
International Money Market
The International Money Market offers competitive yields, booking locations in international
currencies and the security of dealing with the experience of the Money Desk team.
CAPITAL MARKET
Capital markets exchange both long-term fixed claim securities and residual/equity claim
securities. The main economic role of a capital market is to match players who have excess funds to
players who are in need of funds. Capital markets also provide liquidity to financial instruments. In this
exchange process, there is a valuation of the instruments done by the market for the specific risk
assumed by the investors.
The capital gain/loss in buying/selling the security is the trade return from the security. Given
the risk return characteristic of the capital market, the expectations of the market participants play a
major role in the market price determination of the securities traded. This risk-return characteristic of
the instruments necessitates a subdivision of the capital market into debt market and equity market.
Growth of Capital Market in India

Year 1975-76 85-86 97-98 2000- 2005-06 2006-07
01
No of stock exchange 8 14 22 23 22 21
Market value of Capital 3273 25302 560235 625553 3022189 35,45,041
(Rs cr)
Capital issues (Rs cr) 98 1745 34755 49028 78813 115818

Capital raised as percentage 0.7 3.4 9.6 10.0 7.5 8.8
of gross domestic saving
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CAPITAL MARKET AND MONEY MARKET IN INDIA
The financial market in India at present is more advanced than many other sectors as it
became organized as early as the 19th century with the securities exchanges in Mumbai, Ahmedabad
and Kolkata. In the early 1960s, the number of securities exchanges in India became eight - including
Mumbai, Ahmedabad and Kolkata. Apart from these three exchanges, there was the Madras, Kanpur,
Delhi, Bangalore and Pune exchanges as well. Today there are 23 regional securities exchanges in
India. The Indian stock markets till date have remained stagnant due to the rigid economic controls. It
was only in 1991, after the liberalization process that the India securities market witnessed a flurry of
IPOs serially. The market saw many new companies spanning across different industry segments and
business began to flourish.
The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter
Exchange of India) in the mid 1990s helped in regulating a smooth and transparent form of securities
trading. The regulatory body for the Indian capital markets was the SEBI (Securities and Exchange
Board of India). The capital markets in India experienced turbulence after which the SEBI came into
prominence. The market loopholes had to be bridged by taking drastic measures.
The India money market is a monetary system that involves the lending and borrowing of
short-term funds. India money market has seen exponential growth just after the globalization
initiative in 1992. It has been observed that financial institutions do employ money market
instruments for financing short-term monetary requirements of various sectors such as agriculture,
finance and manufacturing. The performance of the India money market has been outstanding in the
past 20 years. Central bank of the country - the Reserve Bank of India (RBI) has always been playing
the major role in regulating and controlling the India money market. The intervention of RBI is varied
- curbing crisis situations by reducing the cash reserve ratio (CRR) or infusing more money in the
economy.
India market growth has experienced good times in the recent years which have prospered the
economy of the country to a great extent. Since the liberalization of the market since the 1990s, there
has been a high growth in the market and various industrial sectors. The positive market growth has
also improved the overall standard of living of the people in the country.
Rapid expansion of government security market, 12,000 crs in 1991-92 to 99630 cr in 1999-
2000 and 2,00 198 cr in 2006-07 secondary market of gilt edge securities has also been increased to
5,01808 in 2007-08. In 1990-91 total private issue was 364 and the fund raised was just Rs 4321 cr
which increased to 2006-07 31,600 cr
CONCLUSION
The recent liberalisation and globalisation measures in the global financial markets have
opened up avenues for newer financial intermediaries like mutual funds, money market instruments,
and pension funds, etc. The financial markets are increasingly being called upon to perform the task of
financial innovations to meet the changing needs of the disintermediated market place. They are faced
with the challenge of developing new financial instruments to help their clients cope with an
increasingly volatile and uncertain market place.
The Indian capital market has been increasing tremendously during last few year. With the
reforms of economy, reforms of industrial policy, reforms of public sector and reforms of financial
sector, the economy has been opened up and many developments have been taking place in the Indian
money market and capital market.
The financial markets play a crucial role in economic development through saving-investment
process, also known as capital formation. A vibrant and competitive financial market is necessary
concomitant of trade and industrial policy liberalization to sustain the ongoing reforms in the
structural aspects of the real economy. The financial sector reforms have been undertaken in the
emerging markets to improve the efficiency and stability of the financial system, and to integrate the
national economy at the international level.
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CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING INDUSTRY
Mr.R.Senthil Kumaran, HOD/MBA, Selvam College of Technology, Namakkal
Introduction
Traditionally, few people changed their banks unless serious problems occurred. In the past
there was, to certain extent, a committed, often inherited relationship between a customer and his/her
bank. The philosophy, culture and organization of financial institutions were grounded in this
assumption and reflected in their marketing policies, which were product and transaction-oriented,
reactionary, focused on discrete rather than continuous activities.
Today, financial institutions can no longer rely on these committed relationships or

established marketing techniques to attract and retain customers. As markets break down into
heterogeneous segments, a more precisely targeted marketing technique is required, which creates a
dialogue with smaller groups of customers and identifies individual needs.
Also, before the Internet revolution, consumers largely selected their banks based on how
convenient the location of bank's branches was to their homes or offices. With the advent of new
technologies in the business of bank, such as Internet banking and ATMs, now customers can freely
chose any bank for their transactions. Thus, the customer base of banks has increased, and so has the
choices of customers for selecting the banks.
This situation coupled with the pressures of competitive and dynamic markets has contributed to the
growth of CRM in the Financial Services Sector.
Customer Relationship Management: The Concept

Customer Relationship Management is the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between consumers and the organizations.
Successful customer relationship management focuses on understanding the needs and desires of the
customers and is achieved by placing these needs at the heart of the business by integrating them with
the organization's strategy, people, technology and business processes.
Need of CRM in the Banking Industry

A Relationship-based Marketing approach has the following benefits: -
Over time, retail bank customers tend to increase their holding of the other products from
across the range of financial products / services available.
Long-term customers are more likely to become a referral source.
The longer a relationship continues, the better a bank can understand the customer and his/her
needs & preferences, and so greater the opportunity to tailor products and services and cross-
sell the product / service range.
Private Banking and CRM

Private Banks have traditionally viewed themselves as exceedingly 'Customer Centric'
offering what they believe to be highly personalized services to the High Net Worth Customers.
However, changes in the customer behavior and accumulation of wealth are resulting in the needs of
HNW customers becoming more diverse and complex in terms of the sorts of products they want, the
channels through which they want to access them and the associated range of advice.
The wealthier the customers, the more demanding they are - and the clients expect more and
more from their banks. Competition for "Supremely elite" is increasing.
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Customer Experiences
The first step towards successfully winning, retaining and growing the profitability of private
banking customers is to understand what their wants and needs are, so that the organization can be
built around serving those needs. Only when an organization has done this and incorporated this into
its strategy can it start to design its value proposition and a customer experience that will enable it to
achieve a differentiated competitive position in the private banking market, and more importantly, do
so in an economically viable way.
The Basic Customer Experience
There is a basic 'generic' customer experience that many private banking customers are
seeking. To be a credible player in the market, a private bank must be able to deliver this 'base'
experience. This represents a common set of needs that are shared by most HNW customers.
Therefore, the private bank must have the capabilities required to meet these needs for the majority of
its customer base.
All customers, regardless of wealth levels, have similar emotional needs, which drive their
need for advice and their purchase of products. Different wealth levels impose different priorities on
meeting these needs and open up new avenues for doing so.
Take a simple example, HNW customers can afford on it to fund their retirement, so their
priorities may be associated with growing wealth, rather than preserving it, allowing them to choose a
product option with a higher risk/reward ratio.
If this is true, it means all HNW customers start with a basic, common set of what they want
and need from a bank, which might include: -
1. Personal, long-term relationship
2. Advice combining industry expertise and knowledge of personal circumstances
3. High quality, consistent quality
4. Security, privacy, confidentiality
5. At this basic level, grouping together these core wants and needs produces a set of generic
characteristics that an HNW individual seeks from an organization before he or she will even consider
placing any of his or her wealth with it.
6. Underlying these generic characteristics is a set of capabilities covering organization, process
and technology, which the private bank must process to operate in the high net worth market.
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The Segment-Specific Experience
To build this 'base' experience, private banks also need to consider the segment-specific needs
of their target customers. This in itself requires a capability to identify and justify target customers and
understand their needs beyond banking, to ensure that their emotional needs are met. It is here that the
customer is made to feel like an individual, but it is also at this point that costs and infrastructure
spiral, as customers' needs start to diverge.
The segmentation process identifies groups of customers with similar wants and needs, who
are seeking a similar experience from the provider. Importantly, from the organizations' viewpoint,
this means that they can also be served by similar sets of capabilities.
The Organization-Specific Experience

Having identified the base and segment specific elements of HNW customer experience, the
final step is to identify how the experience that each organization offers its customers is distinct from
other banks. Now this would mean that one has to distinctly identify the components of the
experience that are not only associated with a particular bank but also be the key differentiator.
Conclusion
Banking can be mysterious for consumers and how they interact with their finances can be a
complex matter. The challenges faced by banks and their customers are many but the trick lies in de-
mystifying complex financial relationships. Technical solutions deployed by banks today are flexible,
user-friendly and meant to facilitate specific workflow and requirements in implementation
processes. In order to simplify lives, banks have begun to implement end-to-end technologies through
all departments with the intention of removing human error from processes. Previously existing
manual environments could not have been adequate for future visions, growth plans and strategies. In
this day and age, customers enjoy complete luxury in terms of customized technical solutions and
banks use the same to cement long-term, mutually-beneficial relationships.
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A STUDY OF THE PATENTABILITY OF FINANCIAL INNOVATIONS IN INDIA
Dr.S.RADHIKA,M.Com.,M.Phil., Ph.D., Professor, MBA Department, VELTECH Dr.RR & Dr. SR
Technical University, Avadi, Chennai.
Financial Engineering has been an emerging area of finance since the introduction of
derivative instruments. Also it has been the area which poses a lot of challenge to the finance
professional with all its depths and intricacies. This area of finance is also the most dynamic of all
areas in finance with changes happening every day by the efforts of the investment banks which try
to customize the transactions and deals for their clients.
In customizing the transactions and deals for their clients, the investment bankers spend a lot
of resources in terms of time, money and efforts in bringing out a new financial product or
innovation. If such a financial product or innovation generated by one investment bank is replicated
by a competing investment bank without having to spend those resources, then the follower bank
would be at an advantage while the innovator would be at an absolute disadvantage.
If such a process exists, then there would be no motivation for innovation which would
make the area of finance stagnant. To prevent such a thing from happening, we need to provide the
financial innovators various modes of protecting their innovations at least for a limited period of
time thereby help them recover their costs and also make a decent amount of profits thereby
motivate them in innovating further in the area of finance.
Financial Engineering
Leaders of successful businesses build long-term relationships with customers, suppliers,
employees, and shareholders. They make farsighted investments to support and develop their core
competencies. They act quickly to ensure that short-term obstacles do not disrupt their long-term
strategies. In conceiving and implementing corporate strategies, managers have always drawn on the
skills of many specialists, from marketers to production experts.
Now a small but growing number of senior managers have found that practitioners of a new
technical specialtyfinancial engineeringcan help them achieve their companies strategic
objectives. They have found that, like other technological breakthroughs such as cheap computing
power, financial engineering has the potential not only to reduce the cost of existing activities but
also to make possible the development of new products, services, and markets.
Financial Engineering is an area of finance that deals with the method of implementing
financial innovations to find better solutions to specific financial problems. It would generally be
carried out with the diagnosis of a problem, analysis of the possible solutions understanding therewith
a possibility a new financial instrument, producing or evolving of a new financial instrument. It also
involves the activity of pricing and customizing this new financial instrument when the solution is
felt to be relevant to more than one client. It has also been defined as the use of derivatives to manage
risk and create customized financial instruments.
It involves the design, the development, and the implementation of innovative financial
instruments and processes, and the formulation of creative solutions to the problems of finance.
Broadly financial engineering is thus, an area which is involved with the analysis of an existing
financial problem, designing a financial solution in the form of a financial product or service or
system using the various financial tools and techniques including that of financial derivatives, the
development of the solution based on the data collected after the implementation of the solution, and
then standardizing this solution for future uses.
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Financial Innovation
Financial innovation is not a new phenomenon in the area of finance. Earlier, innovations
were carried out using the traditional instruments of debt and equity and customizing them suitably
according to the needs of the clients. As early as 1934, there were many such instruments which
deviated from the traditional debt and equity models as highlighted by Benjamin Graham. In his
seminal work on investing with David Dodd Security Analysis, he includes as an appendix A
Partial List of Securities which deviate from the Normal Patterns.
In this appendix, they list out 258 different types of securities which do not follow the
traditional pattern of either the debt or the equity like zero-coupon bonds, convertible bonds, exotic
bonds, inflation-indexed bonds, different types of warrants, voting bonds and others.
This area of finance has also elicited the interests of the financial academia. There are a huge
bundle of resources on this area of finance. One of the main areas they have concentrated is on
financial innovation and security design and I have listed some of them here.
Earlier works in the area of financial economics have tried to define financial innovation
using the traditional concepts of debt and equity. But in the modern times, the area of financial
economics has given rise to securities with such complexities that it becomes a Herculean task to
understand it, leave alone defining it. It is only with the basic understanding of the overall complexity
that we have to define a financial innovation.
According to Websters Collegiate Dictionary, innovate is defined as to introduce as or

as if new. It is derived from the Latin word novus which means new. Broadly speaking, financial
innovation is the act of creating and then popularizing new financial instruments as well as new
financial technologies.
Financial innovation refers to any new development in a national financial system or the
international financial system that:
Who innovates and Why?
Having defined and classified the financial innovations, a need was felt to delve into the
problem of understanding the parties who undertake the activity of carrying out financial innovation.
A lot of research work was found in the area of financial innovations done by the earlier researchers.
Most of them concentrated on the organizations which adopted financial innovations, the extent of
adoption and the quickness with which they adopt it.
But the question that I wanted the answer was to analyze the parties who undertake the
activity of carrying out financial innovation. This question revealed a surprising insight into the area
of finance and also it questioned the traditional notion that large investment banks carry out a large
number of financial innovations. As a hypothesis, I had a notion that the larger firms which have
access to the wealth of data, expertise and then markets to sell their innovations. But surveying the
literature, it was found that that is not always the case. A review of literature on this area was carried
out in Ross and Scherer.
Silber for one, suggests that those financial institutions which have the most constraints in
terms of costs, talents, markets, etc., or inconvenienced by imperfections, would be the most likely
to innovate, as costs of these constraints would have a serious impact on the profitability of these
companies. So going by this string of thought, we would be forced to assume that smaller companies
which have greater constraints would be forced to innovate more.
175
This was also supported by few of the landmark examples in the world of finance like that of
Vanguard and Drexel Burnham Lambert which innovated products like index funds and junk bonds
and after these products became popular, these companies grew. So going by such examples, one
would be tempted to believe that smaller firms are carrying out the large number of financial
innovations.
But if we look at the other side of the story, we can find that this might not be the case.
Tufano shows that at least in the area of financial securities innovations, larger and more financially
secure investment banks have consistently been the leading innovators. The reason he gives for this
is that larger investment banks have access to the earlier innovations or they have the muscle power
to negotiate the transfer of innovation to them at an affordable price.
Motivations for Financial Innovations

Since 1970, financial innovation has accelerated markedly. A major motivation was to
circumvent discriminatory regulations and tax laws. Another motivation was to deal with increased
exchange rate, interest rates and commodity prices volatility after the end of the Bretton Woods
fixed exchange rate system.
There have been a lot of research materials on this area and Harris and Raviv provide a
survey of the literature on this area. Among the researchers who have studied the motivations for
financial innovations, we have legends like Miller quoting the major impulse for successful
financial innovation has come from a desire to reduce the impact of taxes and regulations. New
securities are often designed in response to accounting standards, regulations and tax codes, which
are not mundane motives.
To quote Tufano, if the world were free of all imperfections such as taxes, regulations,
information asymmetries, transaction costs, and moral hazards and if markets were complete in the
sense the existing securities spanned all the states of nature, we could arrive at an M&M-like
corollary regarding financial innovations. Financial innovations would benefit neither private parties
nor society and would simply be neutral mutations.
Tax structure in the country: Changing the tax structure motivates innovation. Each
successful innovation earns an immediate reward for its adopters in the form of tax money saved.
Social economists also criticize this aspect stating that the Governments are in fact subsidizing the
process of financial innovation, just as they are subsidizing the development of new seeds or aero
planes, but with the important difference that, in financial innovation, the Governments
contribution is inadvertent.
Changes in the regulatory system of the country: At times innovations arise out of very
specific regulatory environments. Some of such innovations are significant in the sense of being
permanent even when the original cause for its creation has disappeared. The Eurodollar market, for
example, owed its origins to Regulation Q.
Increased Volatility in the trading activities: Risk reduction is one of the most important
reasons why a person carries an investment decision. When the person who is carrying out the
transactions faces a lot of volatility on the exchanges, then he starts looking out for ways and means
of reducing the risk to which he is exposed to and thereby mitigate his losses. This is exactly the
reason why we have option contracts on various underlying instruments including commodities
being traded on the exchanges.
Also volatility in the dependant factors of the underlyings such as the prices of the
commodities, the interest rates, the share prices and other underlyings have contributed to the advent
of the risk-hedging and risk-transfer tools and mechanisms.
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Breakthrough advances in the financial theories: Scientific breakthroughs in the area of

finance such as the Pricing of Options and Corporate Liabilities achieved by Fisher Black and
Myron Scholes in the year 1973 has paved the way for a lot of financial innovations which are based
on their theories. Also the concept of valuing option contract has motivated the financial institutions
in innovating a lot of financial products and services
Transaction costs for the intermediaries: Duffie and Rahi quote a very interesting
example to substantiate this motive of financial innovation. They state that exchange members
would not favor introducing trade in contracts delivering something as obscure as amethysts, if this
meant giving up trade in, say, oil, German marks, or US treasury bonds. Neither would they favor
trade in something whose price is relatively stable such as salt. Amethysts and salt are unlikely to
present significant price risk to consumers or businesses. One theme of the literature, going back at
least to Working and evident in the Milgrom and Stokey no-trade theorem, is that an exchange
would rarely find it attractive to introduce a security whose sole justification is the opportunity for
speculation. Speculators depend for trading opportunities on the existence of hedgers, or as in the
financial microstructure literature, on liquidity-traders.
It is desirable to strengthen the integration of financial markets to reap the positive benefits of
it. But, since the degree of integration is dependent on policy and institutional infrastructure, the
ongoing financial reform programme needs to be accelerated to further deepen the degree of
convergence between the overseas and domestic markets. But even as efforts are intensified for
deepening and broadening financial market segments and for developing a seamless and vibrant
market continuum, a policy response to the transition should rely on multiple interventions.
177
DERIVATIVE MARKET IN INDIA A GROWTH PERSPECTIVE
Dr. R. Karuppasamy, M.Com, MPhil, Ph.D, Director Department of Management Studies, SNS
College of Technology, Coimbatore
Mr. S.Viswanathan, Research Scholar & Assistant Professor, RVS Institute of Management,
Coimbatore
INTRODUCTION:
Risk is a characteristic feature of all commodity and capital markets. Over time, variations in
the prices of agricultural and non-agricultural commodities occur as a result of interaction of demand
and supply forces. The last two decades have witnessed a many-fold increase in the volume of
international trade and business due to the ever growing wave of globalization and liberalization
sweeping across the world. As a result, financial markets have experienced rapid variations in interest
and exchange rates, stock market prices thus exposing the corporate world to a state of growing
financial risk. Increased financial risk causes losses to an otherwise profitable organization. This
underlines the importance of risk management to hedge against uncertainty. Derivatives provide an
effective solution to the problem of risk caused by uncertainty and volatility in underlying asset.
Derivatives are risk management tools that help an organization to effectively transfer risk. Derivatives
are instruments which have no independent value. Their value depends upon the underlying asset. The
underlying asset may be financial or non-financial. The present study attempts to discuss the genesis of
derivatives trading by tracing its historical development, types of traded derivatives products,
regulation and policy developments, trend and growth, future prospects and challenges of derivative
market in India.
Concept of Derivatives:
The term derivatives, refers to a broad class of financial instruments which mainly include
options and futures. These instruments derive their value from the price and other related variables of
the underlying asset. They do not have worth of their own and derive their value from the claim they
give to their owners to own some other financial assets or security. A simple example of derivative is
butter, which is derivative of milk. The price of butter depends upon price of milk, which in turn
depends upon the demand and supply of milk. The general definition of derivatives means to derive
something from something else. Some other meanings of word derivatives are:
A. derived function: the result of mathematical differentiation; the instantaneous change of

one quantity relative to another;
B. derivative instrument: a financial instrument whose value is based on another security,

(Linguistics) a word that is derived from another word; "`electricity' is a derivative of electric.
The asset underlying a derivative may be commodity or a financial asset. Derivatives are those
financial instruments that derive their value from the other assets. For example, the price of gold to be
delivered after two months will
Participants in Derivatives Market

1. Hedgers: They use derivatives markets to reduce or eliminate the risk associated with price of an
asset. Majority of the participants in derivatives market belongs to this category.
2. Speculators: They transact futures and options contracts to get extra leverage in betting on future
movements in the price of an asset. They can increase both the potential gains and potential losses by
usage of derivatives in a speculative venture.
3. Arbitrageurs: Their behavior is guided by the desire to take advantage of a discrepancy between
prices of more or less the same assets or competing assets in different markets. If, for example, they see
the futures price of an asset getting out of line with the cash price, they will take offsetting positions in
the two markets to lock in a profit.
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Applications of Financial Derivatives
Some of the applications of financial derivatives can be enumerated as follows:
1. Management of risk: This is most important function of derivatives. Risk management is not about
the elimination of risk rather it is about the management of risk. Financial derivatives provide a
powerful tool for limiting risks that individuals and organizations face in the ordinary conduct of their
businesses. It requires a thorough understanding of the basic principles that regulate the pricing of
financial derivatives. Effective use of derivatives can save cost, and it can increase returns for the
organizations.
2. Efficiency in trading: Financial derivatives allow for free trading of risk components and that leads
to improving market efficiency. Traders can use a position in one or more financial derivatives as a
substitute for a position in the underlying instruments. In many instances, traders find financial
derivatives to be a more attractive instrument than the underlying security. This is mainly because of
the greater amount of liquidity in the market offered by derivatives as well as the lower transaction
costs associated with trading a financial derivative as compared to the costs of trading the underlying
instrument in cash market.
3. Speculation: This is not the only use, and probably not the most important use, of financial
derivatives. Financial derivatives are considered to be risky. If not used properly, these can leads to
financial destruction in an organization like what happened in Barings Plc. However, these instruments
act as a powerful instrument for knowledgeable traders to expose themselves to calculated and well
understood risks in search of a reward, that is, profit.
4. Price discover: Another important application of derivatives is the price discovery which means
revealing information about future cash market prices through the futures market. Derivatives markets
provide a mechanism by which diverse and scattered opinions of future are collected into one readily
discernible number which provides a consensus of knowledgeable thinking.
5. Price stabilization function: Derivative market helps to keep a stabilizing influence on spot prices
by reducing the short-term fluctuations. In other words, derivative reduces both peak and depths and
leads to price stabilization effect in the cash market for underlying asset.
Classification of Derivatives
Broadly derivatives can be classified in to two categories as shown in Fig.1: Commodity
derivatives and financial derivatives. In case of commodity derivatives, underlying asset can be
commodities like wheat, gold, silver etc., whereas in case of financial derivatives underlying assets are
stocks, currencies, bonds and other interest rates bearing securities etc. Since, the scope of this case
study is limited to only financial derivatives so we will confine our discussion to financial derivatives
only.
Forwards
A forward contract is a customized contract between two entities, where Settlement takes
place on a specific date in the future at todays pre-agreed price.
Futures
A futures contract is an agreement between two parties to buy or sell an asset at a certain time
in the future at a certain price. Futures contracts are special types of forward contracts in the sense that
the former are standardized exchange-traded contracts
Options:
Options are of two types - calls and puts. Calls give the buyer the right but not the obligation
to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts
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give the buyer the right, but not the obligation
to sell a given quantity of the underlying asset
at a given price on or before a given date.
Warrants:
Options generally have lives of up to
one year; the majority of options traded on
options exchanges having a maximum
maturity of nine months. Longer-dated
options are called warrants and are generally
traded over-the-counter.
Derivatives Market India

As mentioned in the preceding discussion, derivatives trading commenced in Indian market in
2000 with the introduction of Index futures at BSE, and subsequently, on National Stock Exchange
(NSE). Since then, derivatives market in India has witnessed tremendous growth in terms of trading
value and number of traded contracts.
Derivatives Products Traded in Derivatives Segment of BSE:

The BSE created history on June 9, 2000 when it launched trading in Sensex based futures
contract for the first time. It was followed by trading in index options on June 1, 2001; in stock options
and single stock futures (31 stocks) on July 9, 2001 and November 9, 2002, respectively. Currently, the
number of stocks under single futures and options is 1096. BSE achieved another milestone on
September 13, 2004 when it launched Weekly Options, a unique product unparalleled worldwide in the
derivatives markets. It permitted trading in the stocks of four leading companies namely; Satyam, State
Bank of India, Reliance Industries and TISCO (renamed now Tata Steel). Chhota (mini) SENSEX was
launched on January 1, 2008. With a small or 'mini' market lot of 5, it allows for comparatively lower
capital outlay, lower trading costs, more precise hedging and flexible trading. Currency futures were
introduced on October 1, 2008 to enable participants to hedge their currency risks through trading in
the U.S. dollar-rupee future platforms.
Derivatives Products Traded in Derivatives Segment of NSE

NSE started trading in index futures, based on popular S&P CNX Index, on June 12, 2000 as
its first derivatives product. Trading on index options was introduced on June 4, 2001. Futures on
individual securities started on November 9, 2001. The futures contracts are available on 2338
securities stipulated by the Securities & Exchange Board of India (SEBI). Trading in options on
individual securities commenced from July 2, 2001. The options contracts are American style and cash
settled and are available on 233 securities. Trading in interest rate futures was introduced on 24 June
2003 but it was closed subsequently due to pricing problem. The NSE achieved another landmark in
product introduction by launching Mini Index Futures & Options with a minimum contract size of Rs 1
lac. NSE crated history by launching currency futures contract on US Dollar-Rupee on August 29,
2008 in Indian Derivatives market.
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Product wise Number of Contracts Traded during 2009-10
the
CONCLUSION :
Innovation of derivatives have redefined and revolutionised the landscape of financial industry
across the world and derivatives have earned a well deserved and extremely significant place among all
the financial products. Derivatives are risk management tool that help in effective management of risk
by various stakeholders. Derivatives provide an opportunity to transfer risk, from the one who wish to
avoid it; to one, who wish to accept it. Indias experience with the launch of equity derivatives market
has been extremely encouraging and successful. The derivatives turnover on the NSE has surpassed the
equity market turnover. Significantly, its growth in the recent years has surpassed the growth of its
counterpart globally.
The turnover of derivatives on the NSE increased from Rs. 23,654 million (US $ 207 million)
in 2000-01 to Rs. 130,904,779 million (US $ 3,275,076 million) in 2007-08. India is one of the most
successful developing countries in terms of a vibrant market for exchange-traded derivatives. This
reiterates the strengths of the modern development of Indias securities markets, which are based on
nationwide market access, anonymous safe and secure electronic trading, and a predominantly retail
market. There is an increasing sense that the equity derivatives market is playing a major role in
shaping price discovery. Factors like increased volatility in financial asset prices; growing integration
of national financial markets with international markets; development of more sophisticated risk
management tools; wider choices of risk management strategies to economic agents and innovations in
financial engineering, have been driving the growth of financial derivatives worldwide and have also
fuelled the growth of derivatives here, in India.
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BIBLIOGRAPHY
1. J.N. Dhankar, "Capital Market Reforms",paper presented in the conference of 2nd Generation
Reforms, pp 1-2, 2001.
2. Ranjan Mukherjee "Derivatives what it is?" the Management Accountant,May 1998, pp 335-37.
3. Sanjive Aggarwal, "Indian Capital Market" 2nd edition.
4. Fred. D. Arditti, Derivatives: A comprehensive Resource for options, futures,Interest Rate Swaps
and Mortgage securities, Harward Business School Press.
5. V. K. Bhalla, Financial Derivatives (Risk management 2001, S. Chand & Company Ltd. Publication.
6. A. S. Harish "Potential of Derivatives Market in India", The ICFAI Journal of Applied Finance, Vol.
7, No.5, Nov. 2001, pp 1-24.
7. Andrew Kasapi, Mastering credit derivatives, Financial Times prentice Hall, pp 1-3.
8. Report of the L. C. Gupta Committee on Derivatives and Verma Committee Report on Risk
Containment in the Derivatives Market.
9. John C Hull, Options, futures and Other Derivatives, Prentice Hall of India Private Limited, 1997.
10. Websites: Securities and Exchange Board of India (www.sebi.com), National Stock Exchange of
India (www.nseindia.com) and Stock Exchange, Mumbai (www.bseindia.org)
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INTERNATIONAL MONEY MARKET - EUROCURRENCY MARKET
Dr. M.Balamurugan, Asst. Professor, St.Michael College of Engg & Tech., Kalayarkoil -
A.V.Karthick, Asst. Professor, Dept. of Management Studies, St.Michael College of Engg & Tech.,
Kalayarkoil
Introduction
The last two decades have witnessed the emergence of a vast financial market straddling
national boundaries enabling massive cross-broder capital flows from those who have surplus funds
and are in search of high returns to those seeking low-cost funding. The phenomenon of borrowers,
including governments, in one country accessing the financial markets of another is not new; what is
new is the degree of mobility of capital, the global dispersal of the finance industry and enormous
diversity of markets and instruments which a firm seeking funding can tap.
The decade of eighties ushered in a new phase in the evolution of international financial
markets and transactions. Major OECD countries had began deregulating and liberalizing their
financial markets toward the end of seventies. While the process was far from smooth, the overall
trend was in the direction of relaxation of controls which till then had compartmentalized the global
financial markets. Exchange and capital controls were gradually removed, non-residents were allowed
freer access to national capital markets and foreign banks and financial institutions were permitted to
establish their presence in the various national markets. The process of liberalization and integration
continued into the 1990s with many of the developing countries carrying out substantive reforms in
their economies and opening up their financial markets to non-resident investors.
While opening up of the domestic markets began only around the end of seventies, a truly
international financial market had already been born in mid-fifties and gradually grown in size and
scope during sixties and seventies. This is the well known Eurocurrencies Market wherein a borrower
(investor) from country A could raise (place) fund in currency of country B from (with) financial
institution located in country C.
International markets simply add a number of extra dimensions. And the liberalisation of
financial markets also posed major new institutional and policy questions as regulation was dismantled,
and the domain of the market now exceeded the jurisdiction of national regulators. Deregulation thus
had two components the removal of pre-existing regulations and controls, and the migration of the
market out-with national juridical boundaries and hence out-with national controls. The subsequent
attempt to recover some regulatory control on an international scale has had only limited success. Thus
successful financial regulation, particularly in the attempted management of systemic risk, must be
based on a coherent understanding of the relationship between micro-risk, macro-contagion and macro-
consequences. In addition, regulation and supervision are important components of macroeconomic
policy.
To a considerable extent regulatory rules define the relationship between the stock of financial
assets and liquidity (the transmission mechanism). The pro-cyclical impact of regulation has been
regulated recently, yet despite their potentially major impact regulatory rules have not yet been
incorporated in to the fabric of monetary policy. An understanding of the need for regulation, of the
impact of regulation, and of the limits of regulation, therefore requires an analysis of the relationship
between micro-economic actions and the behaviour of the macro-economy. Yet it is exactly this
analysis that appears at the moment to be absent from the discussion of international financial
regulation, and to play little role, if any, in considerations of the future of the international financial
architecture. In part this is because of the need to concentrate on the micro-economic nuts and
bolts of regulation and supervision, but more generally it derives from the lack of a generally
accepted, let alone satisfactory, macro-economic theory. An important goal of the CERF project is to
establish a macroeconomics that relates financial markers, institutions, and actors, to macro-economic
performance in a coherent manner. The Beauty Contest was a beginning. There is much further to go.
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Money market
Definition
Market for short-term debt securities, such as bankers acceptances, commercial Paper, bonds,
negotiable certificates of deposit, and Treasury Bills with a maturity of one year or less and often 30
days or less. Money market securities are generally very safe investments which return a relatively low
interest rate that is most appropriate for temporary cah storage or short-term time horizons. Bid and
ask spreads are relatively small due to the large size and high liquidity of the market.
Domestic Money Market

We invest money in the Canadian Money Markets. This service provides daily Money Market
requirements for both borrowers and investors. Up-to-the-minute information and advice is offered on
differentials, Money Market trends and market psychology.
Investments include:
Government of Canada Treasury Bills
Provincial Treasury Bills
Provincial Promissory Notes
Term Deposit Receipts
Banker's Acceptances
Canadian Commercial Paper
Swap deposits
International Money Market

The International Money Market offers competitive yields, booking locations in international
currencies and the security of dealing with the experience of the Money Desk team.
International Money Market - Eurocurrency

The core of the international money market is the Eurocurrency market. A Eurocurrency is a
time deposit of money in an international bank located in a country different form the country that
issued the currency. The origin of the Eurocurrency market can be traced back to the 1950s and early
1960s, when the former Soviet Union and Soviet-bloc countries sold gold and commodities to raise
hard currency. Because of anti-Soviet sentiment, these Communist countries were afraid of
depositing their U.S. dollars in U.S. banks for fear that the deposits could be frozen or taken. Instead
they deposited their dollars in a French bank whose telex address was EURO-BANK. Since that time,
dollar deposits outside the United States have been called Eurodollars and banks accepting
Eurocurrency deposits have been called Eurobanks.
EURONOTES
Euronotes are short-term notes underwritten by a group of international investment or
commercial banks called a facility. A client-borrower makes an agreement with a facility to issue
Euronotes in its own name for a period of time, generally 3 to 10 years. Euronotes typically have
maturities of from three to six months. Borrowers find Euronotes attractive because the interest
expense is usually slightly less typically LIBOR plus 1/8 percent in comparison to syndicated
Eurobank loans.
International Currency Rates

Short Term 7 Days Notice One Month Three Months Six Months One Year
Euro 3 1/32 to 2 31/32 3 1/32 to 3 3 3/32 to 3 1/16 3 1/4 to 3 7/32 3 15/32 to 3 3/8 3 21/32 to 3 9/16
Sterling 4 29/32 to 4 27/32 4 7/8 to 4 25/32 4 7/8 to 4 13/16 4 15/16 to 4 29/32 5 3/32 to 5 5 9/32 to 5 5/32
Swiss Franc 1 7/16 to 1 3/8 1 15/32 to 1 3/8 1 9/16 to 1 1/2 1 23/32 to 1 5/8 1 27/32 to 1 3/4 2 3/32 to 2
Canadian Dollar 4 5/16 to 4 9/32 4 5/16 to 4 7/32 4 5/16 to 4 7/32 4 5/16 to 4 1/4 4 11/32 to 4 1/4 4 3/8 to 4 5/16
US Dollar 5 9/32 to 5 7/32 5 5/16 to 5 1/4 5 5/16 to 5 1/4 5 3/8 to 5 5/16 5 7/16 to 5 13/32 5 7/16 to 5 13/32
Japanese Yen 5/16 to 9/32 11/32 to 9/32 11/32 to 9/32 13/32 to 11/32 7/16 to 3/8 19/32 to 17/32
Singapore $ 3 3/8 to 3 1/8 3 11/16 to 3 15/32 3 21/32 to 3 17/32 3 19/32 to 3 1/2 3 5/8 to 3 1/2 3 19/32 to 3 1/2
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Conclusion
The recent liberalisation and globalisation measures in the global financial markets have
opened up avenues for newer financial intermediaries like mutual funds, money market instruments,
and pension funds, etc. The financial markets are increasingly being called upon to perform the task of
financial innovations to meet the changing needs of the disintermediated market place. They are faced
with the challenge of developing new financial instruments to help their clients cope with an
increasingly volatile and uncertain market place.
The financial markets play a crucial role in economic development through saving-investment
process, also known as capital formation. A vibrant and competitive financial market is necessary
concomitant of trade and industrial policy liberalisation to sustain the ongoing reforms in the
structural aspects of the real economy. The financial sector reforms have been undertaken in the
emerging markets to improve the efficiency and stability of the financial system, and to integrate the
national economy at the international level.
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MOTIVES FOR MERGERS AND ACQUISITIONS IN THE INDIAN BANKING
SECTOR A NOTE ON OPPORTUNITIES & IMPERATIVES
Ms.J.Aarthi, MBA, M.Phil, Mr.P.S.Sridharan, MBA, M.Phil, Assistant Professor, Department of
Management Studies, Guru Nanak College,Velachery,Chennai-42
Generally speaking a bank is an institution dealing in money. The origin of the word bank is
traced to the Italian banca, banc or banque, which means a bench. It is stated that in Middle Ages
the European money changers and moneylenders displayed their coins on their benches and conducted
their business. Hence the term bank refers to the bench on which the business of money changing and
money lending was conducted. Hence, the term banking is defined as accepting for the purpose of
lending or investment, of deposits of money from the public repayable on demand or otherwise and
withdrawal by cheque, draft, and order or otherwise.
In the recent past, the Indian banking system has been undergoing major changes that have
affected both its structure and the nature of strategic interaction among banking institutions. Different
strategies have been adopted to tackle the demands of this new operating environment, one such
strategy having been consolidation via mergers and acquisitions. The Government and the Reserve
Bank of India are in favour of this change and consequently arises a desire to study this aspect in detail.
Considering the maturity of certain international markets an attempt would be made to obtain certain
practices from them as well. However the paper takes cognizance of the fact that Mergers and
Acquisitions (M&A) is highly environment dependant and hence there is a constant focus on this
aspect while pertaining to practices. It is observed that the banking industry is moving from traditional
savings-cum-lending functions to other services as well such as Bank-assurance and securities trading.
In recent times, banks have also diversified their activities to cover a wide range of activities. They
arrange remittance of funds from one place to an other, they act as agent of their customers in certain
activities like payment of subscription, and they also act as guarantors for their customers. Thus banks
in India need to change in form and structure so as to adapt to meet these changing scenarios of being a
total financial services provider and for this a preferred route ought to be inorganic growth due to time
advantages and hence mergers and acquisitions for consolidation. In the recent times, there have been
numerous reports in the media on the Indian Banking Industry.
The Indian Banking Sector

The history of Indian banking can be divided into three main phases 1 :
Phase I (1786- 1969) - Initial phase of banking in India when many small banks were set up
Phase II (1969- 1991) - Nationalisation, regularisation and growth
Phase III (1991 onwards) - Liberalisation and its aftermath
With the reforms in Phase III the Indian banking sector, as it stands today, is mature in
supply, product range and reach, with banks having clean, strong and transparent balance sheets. The
major growth drivers are increase in retail credit demand, proliferation of ATMs and debit-cards,
decreasing NPAs due to Securitisation, improved macroeconomic conditions, diversification, interest
rate spreads, and regulatory and policy changes (e.g. amendments to the Banking Regulation Act).
Certain trends like growing competition, product innovation and branding, focus on strengthening risk
management systems, emphasis on technology have emerged in the recent past. In addition, the impact
of the Basel II norms is going to be expensive for Indian banks, with the need for additional capital
requirement and costly database creation and maintenance processes. Larger banks would have a
relative advantage with the incorporation of the norms.
This paper is a short note taking holistic approach to compare the rationale behind M&A in
India and the international arena. The approach is non-empirical and draws from a mix of recent
literature review and interpretations of a few recent observations. Relevant observations have been
cited at every stage to reinforce the reasons. While evaluating the various reasons for M&A in the
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banking sector we have consciously focussed the discussion on the imperative and the opportunistic
needs for M&A in the banking sector.
M&A in the Indian Banking Sector as an Imperative

Multiple reasons force us to believe that M&A in the Indian Banking Sector is an imperative.
We list them down below:
Stability:
Fragmentation poses increasing risk in the Indian Banking Sector. During the financial period
2001-2005, only four banks have been able to cross the market capitalization of Rs. 50 billion included
Bank of Baroda, HDFC Bank, ICICI Bank, and State Bank of India. Considerable fragmentation exists
in the Banking sector for banks with market capitalization of less than Rs. 50 billion. Moreover the
created value is moving away from the top 5 banks thus indicating fragmentation indeed has increased
over the period of last five years. Shown below are the deposit shares of the Banks operating in India
over the period 2000-2004. Data was drawn from around 45 banks which included state-controlled
public sector banks, private sector banks and even foreign banks operating in India. It is observed that
the share of the top 5 players has eroded and been consumed by the next fifteen players. Considering
that the base of total deposits has been consistently increasing, consequently the value in deposits
gained by the next 15 banks has been tremendous (see table below).
Year 20Similar trends are observed in profit after tax, borrowings and interest and non
interest incomes of the banks, thereby hinting at increased levels of fragmentation in the top 20 banks.
Though this could be the sign of a competitive bank market with healthy banks remaining in the market
the goal of globally competent banks would be missed. In other words, while a fragmented Indian
banking structure may very well be beneficial to the customers (given increased competition due to
lower market power of existing players), at the same time this also creates the problem of no player
having the critical mass to play the game at the global banking industry level. This has to be looked at
significantly from the states long-term strategic perspective.
Furthermore, it is observed that in an increasing competitive arena the smaller fragmented

banks with no economies of scale, low capabilities to manage risks and poor market power at times end
up taking excessive risks resulting in irreparable loss to their depositors. This also results in affecting
the state and its regulators i.e., central bank negatively. Take the following cases of trouble in the
recent past: a. Global Trust Bank: Significant exposure to high risk mid size corporates and an
excessive exposure to capital market operations. b. Madhavpura Mercantile Co-operative Bank:
Nineteen customers had unsecured loans of more than Rs. 10 billion. c. South Indian Co-operative
Bank: Non Performing Assets (NPAs) from excessive lending to small group of clients d. Nedungadi
Bank: This bank based in Southern part of India had significant exposure to plantation industry and had
weak credit risk management systems and processes. Further recent cases (in 2005-06) of two banks in
India namely United Western Bank and Sangli Bank became attractive targets for acquisition by private
sector banks because of their risk profile. The merger with these larger banks is expected to improve
the asset profile, NPA management and protect the depositors at the same time offer the acquiring
private sector banks further reach in terms of branches and customer base.
Managing Bankruptcy Risks

Recent studies have established that if merger and acquisitions in banks if allowed in a
Controlled manner would significantly reduce the bankruptcy risk of the merged entity. Obviously,
mergers would also provide these benefits to banks in India reducing their bankruptcy concerns.
Bottom Line Growth:

Mergers and Acquisitions or Restructuring may also help banks improve in three other areas
as listed below:
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1. Economies of Scale: An acquirer would have the capabilities to improve the collections, service
processes, distribution, infrastructure and IT of the target bank
2. Economies of Scope: An ability to grow products and segments and an opportunity to cross sell
would enhance revenue. This could also result in more geographic growth could also be
obtained.
3. Synergy Benefits: Treasury performance would be improved as the cost of funds would reduce
(hence, improve spread) as it would have a better credit rating. A bank would also be able to leverage
scale and improve its trading income.
M&A in the Indian Banking Sector as an Opportunity

Two prime reasons force us to believe that M&A in the Indian Banking Sector is an opportunity.
Creation of a Financial Super Market or a Universal Bank:9, 10, 11

A recent trend is to promote the concept of a financial super market chain, making available
all types of credit and non-fund facilities under one roof under one umbrella organization (or through
specialized subsidiaries). An example of such a financial supermarket would be the reverse merger of
ICICI and ICICI Bank. ICICI Bank today stands as Indias second largest bank offering its clients both
in India and overseas a product range as varied us retail banking products to exotic investment banking
and treasury solutions. Similarly, IDBI and IDBI Bank treaded the same route. Though one has to state
that consolidated accounting and supervisory techniques would have to evolve and appropriate fire
walls built to address the risks underlying such large organizations and banking conglomerates.
Motives Behind Consolidation
Based on the cases, we can narrow down the motives behind M&As to the following :
Growth - Organic growth takes time and dynamic firms prefer acquisitions to grow quickly in
size and geographical reach.
Synergy - The merged entity, in most cases, has better ability in terms of both revenue
enhancement and cost reduction.
Managerial efficiency - Acquirer can better manage the resources of the target whose value, in
turn, rises after the acquisition.
Strategic motives - Two banks with complementary business interests can strengthen their
positions in the market through merger.
Market entry - Cash rich firms use the acquisition route to buyout an established player in a
new market and then build upon the existing platform.
Tax shields and financial safeguards - Tax concessions act as a catalyst for a strong bank to
acquire distressed banks that have accumulated losses and unclaimed depreciation benefits in
their books.
Regulatory intervention - To protect depositors, and prevent the de-stabilisation of the
financial services sector, the RBI steps in to force the merger of a distressed bank.
Future of M&A in Indian Banking

In 2009, further opening up of the Indian banking sector is forecast to occur due to the
changing regulatory environment (proposal for upto 74% ownership by Foreign banks in Indian
banks). This will be an opportunity for foreign banks to enter the Indian market as with their huge
capital reserves, cutting-edge technology, best international practices and skilled personnel they have a
clear competitive advantage over Indian banks. Likely targets of takeover bids will be Yes Bank, Bank
of Rajasthan, and IndusInd Bank. However, excessive valuations may act as a deterrent, especially in
the post-sub-prime era.
Persistent growth in Indian corporate sector and other segments provide further motives for
M&As. Banks need to keep pace with the growing industrial and agricultural sectors to serve them
effectively. A bigger player can afford to invest in required technology. Consolidation with global
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players can give the benefit of global opportunities in funds' mobilization, credit disbursal, investments
and rendering of financial services. Consolidation can also lower intermediation cost and increase
reach to underserved segments.
The Narasimhan Committee (II) recommendations are also an important indicator of the
future shape of the sector. There would be a movement towards a 3-tier structure in the Indian banking
industry: 2-3 large international banks; 8-10 national banks; and a few large local area banks. In
addition, M&As in the future are likely to be more market-driven, instead of government-driven. 11
CONCLUSION
Mergers and Acquisitions (M&A) have immensely evoked and still continue to capture
scholars interests. More so, M&A in the banking sector evokes high interest simply for the fact that
after decades of strict regulations, easing of the ownership & control regulations has led to a wave of
M&A in banking industry throughout the world . Considering the changed environment conditions, we
believe that M&A in the Indian Banking are an important necessity. The reasons include (a)
fragmented nature of the Indian banking sector resulting in poor global competitive presence and
position; (b) large intermediation costs and consequent probability in increasing its risk profile; and (c)
meet the new stringent international regulatory norms. While a fragmented Indian banking structure
may very well be beneficial to the customers , at the same time this also creates the problem of not
having any critical mass to play the game at the global banking industry level. This has to be looked at
significantly from the states long-term strategic perspective. Given that economic power is
increasingly used as a tool by nations to defend their position, to signal power, to signal intent, and to
establish their supremacy over others hence owning and managing large powerful global banks would
be an obvious interest for every country. Additionally, given the recent advances in electronic
technology (especially wireless) makes the traditional occupation of land theory redundant, increasing
the importance for the state to intervene and create large sized banks using the M&A route. Hence, it is
imperative for the state to create a few large sized banks even at the cost of hurting its other
stakeholders including customers.
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INNOVATIVE FINANCIAL INSTRUMENT - CARBON CREDITING & CARBON
TRADING
T.Suganthalakshmi, Asst. Prof. School of Management Studies, Anna University of Technology,
Coimbatore 47.
Dr.C.Muthuvelayutham, Asst.Prof, Directorate of online and distance Education, Anna University of
Technology, Coimbatore
ABSTRACT
Financial tool enables organizations to make a complete financial analysis or discussions with
other investors around all types of asset classes, including stocks, bonds, forex and funds. A financial
tools helps to maintain IT systems, leading to improved competitiveness and ramp up the market in
their businesses. An appropriate financial tool should possess the following.
Real-time financial data, information or intelligence on several investment opportunities.
Interactive with investors to effectively implement the financial plan
Application that facilitates investor to quantitatively assess the viability of new or existing
investments.
Ability to connect and network with other peer investors to exchange investment analysis tips
and advice.
Ability to compete with real money and other peer investors to hone their financial investment
analysis.
A good financial management tool helps an organisation in customer management systems,

compliance solutions to prevent money laundering and illegal insider trading, and credit risk
management systems to evaluate risks. Also helps in development of complete sales management
systems for retail companies, software solutions to review applications in the health insurance industry,
and custom development projects.
Innovations had shown consistent growth,double digit growth rates and always maintains the
leadership position. Therefore just a financial tool is no sufficient, an innovative financial tool is very
essential.
This paper would elaborately discusses about the various innovations that had merged with
financial organizations and made the financial planning a better one.
INTRODUCTION:
Financial instrument are easily tradable packages of capital, each having their own unique
characteristics and structure. It is a contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. The wide array of financial instruments in
today's marketplace allows efficient flow of capital amongst the world's investors.
CARBON CREDIT
Every industry/nation has a maximum fixed carbon emission per year and emissions had to be
maintained below that level. If a nation is able to go below the limit, those extra "credits" could be sold
to other industries who can't comply with the limit. Selling of these credits is termed as carbon trading.
This trading happens not only amongst industries also between nations. Trading carbon credits is a new
mechanism designed to allow firms that fail to meet emission standards set by the 1997 Kyoto
Protocol, to buy credits from other firms that meet their targets. The advantages of carbon trading are
that the seller and intermediary can hedge against price risk and no counterparty risk as the Exchange
guarantees the trade. The price discovery on the Exchange platform ensures a fair price for both the
buyer and the seller.
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KOYOTO PROTOCOL:
At the 1997 Climate Change Convention in Kyoto, theprimary topic of discussion was the
reduction of greenhouse gases (GHG), which arebelieved to be the principal cause of global warming.
Kyoto Protocol is a voluntary treatysigned by 141 countries, including the European Union, Japan and
Canada for reducing GHGemission by 5.2% below 1990 levels by 2012. The preliminary phase of the
Kyoto Protocolends in 2007 while the second phase starts from 2008. The penalty for non-compliance
in thefirst phase is Euro 40 per ton of carbon dioxide (CO2) equivalent. In the second phase,
thepenalty is hiked to Euro 100 per ton of CO2.
THE CLEAN DEVELOPMENT MECHANISM:

CDM is an arrangement under the Kyoto Protocol allowing industrialized countries with a
greenhouse gas reduction commitment to invest in emission reducing projects in developing countries.
Under CDM, a developed country can take up a greenhouse gas reduction project activity in a
developing country where the cost of GHG reduction project activities is usually much lower. The
developed country would be given credits (Carbon Credits) for meeting its emission reduction targets.
DELHI METRO RAIL PROJECT:

A must mention project is The Delhi Metro Rail Corporation (DMRC): It has become the first
rail project in the world to earn carbon credits because of using regenerative braking system in its
rolling stock. DMRC has earned the carbon credits by using regenerative braking system in its trains
that reduces 30% electricity consumption. Whenever a train applies regenerative braking system, the
released kinetic energy starts a machine known as converter-inverter that acts as an electricity
generator, which supplies electrical energy back to the Over Head Electricity (OHE) lines. This
regenerated electrical energy that is supplied back to the OHE that is used by other accelerating trains
in the same service line. DMRC can now claim 400,000 CERs for a 10-year crediting period beginning
December 2007 when the project was registered by the UNFCCC. This translates to Rs 1.2 crore per
year for 10 years. India has the highest number of CDM projects registered and supplies the second
highest number of Certified Emission Reduction units. Hence, India is already a strong supplier of
Carbon Credits and can improve on it
CARBON CREDIT MARKET:

British Petroleum in UK is emitting GHG more than the accepted norms of UNFCCC. UK has
a tie up with Subsidiary in India or China under CDM. The credits arising out of the use of the new
technology are sold to counterparts in Europe, thus a carbon credit market is created.
There is a great opportunity awaiting India in carbon credit trading which is estimated to go up
to $100 billion by 2010. In the new regime, the country could emerge as one of the largest beneficiaries
accounting for 25 per cent of the total world carbon trade. The carbon emission reductions market has
doubled in volume in the last one year alone but few of its benefits are reaching the developing
countries. The countries like the US, Germany, Japan and China are likely to be the biggest buyers of
carbon credits.
CARBON OFFSETS:
The University of Oxford Environmental Change Institute defines a carbon offset as
mechanism whereby individuals and corporations pay for reductions elsewhere in order to offset their
own emissions
The Environment Protection Authority of Victoria (Australia) defines a carbon offset as: a
monetary investment in a project or activity elsewhere that abates greenhouse gas (GHG) emissions or
sequesters carbon from the atmosphere that is used to compensate for GHG emissions from your own
activities. Offsets can be bought by a business or individual in the voluntary market (or within a trading
scheme), a carbon offset usually represents one tonne of CO2.There are also many companies that sell
191
carbon credits to commercial and individualcustomers who are interested in lowering their carbon
footprint on a voluntary basis.
These carbon off setters purchase the credits from an investment fund or a carbon
development company that has aggregated the credits from individual projects. The quality of the
credits isbased in part on the validation process and sophistication of the fund or developmentcompany
that acted as the sponsor to the carbon project. This is reflected in their price.Voluntary units typically
have less value than the units sold through the rigorously-validatedClean Development Mechanism.
PROCESS OF OFFSETTING:
Before choosing to offset, there are other steps that you should take to reduce emissions. The
Government recognizes a hierarchy of actions to combat the effects of climate change for both
businesses and individuals and encourages you to take action on your carbon footprint in the
following order:
CALCULATE the first action is always to calculate carbon emissions or the carbon emissions from
organization or for an individual. Common emission sources are electricity and gas use and transport.
A number of emissions calculators exist the Governments preferred calculator for individuals is the
Act on CO2 Carbon Calculators that are available on websites like www.direct.gov.uk/ActOnCO2. For
organizations, the Carbon Trust has a carbon calculator available at www.carbontrust.co.uk. Both
calculators use the latest conversion factors and provide advice on how to reduce emissions.
AVOID Once you know the size of your carbon footprint you can begin to take action on CO2. Many
emissions can be avoided in the first place for example by finding alternatives to travelling or turning
off equipment when it is not in use.
REDUCE Once all reasonable actions have been taken to avoid emissions, you should take action to
reduce your remaining emissions through efficiency measures, such as using low-energy light bulbs or
installing better insulation. Again, both the Act on CO2 Calculator and the Carbon Trust can advise on
avoiding and reducing emissions.
OFFSET Many emissions cannot currently be avoided or reduced.. Offset providers will help you to
calculate the emissions relating to the particular activities you wish to offset. If youre not sure where
to buy your offsets, the Quality Assurance Scheme for carbon offsetting will make it easy for you to
identify good quality offsets. If you dont purchase quality assured offsets, then you should take the
time to check that the offsets you choose represent real CO2 reductions and have been measured and
verified by a competent third party.
E.U. MARKET FOR CABON CREDITS:

The global carbon market is dominated by the European Union, where companies that emit
greenhouse gases are required to cut their emissions or buy pollution allowances or carbon credits
from the market, under the European Union Emission Trading Scheme (EU ETS). Europe, which has
seen volatile carbon prices due to fluctuations in energy prices and supply and demand, will continue
to dominate the global carbon market for another few years, as the U.S. and Chinathe world's top
polluters have yet to establish mandatory emission-reduction policies.
U.S MAKET FOR CARBON CREDIT:

On the whole, the U.S. market remains primarily a voluntary market, but multiple cap and
trade regimes are either fully implemented or near-imminent at the regional level. The first
mandatory, market based cap and trade program to cut CO2 in the U.S., called the Regional
Greenhouse Gas Initiative (RGGI), kicked into gear in Northeastern states in 2009, growing nearly
tenfold to $2.5 billion, according to Point Carbon. Western Climate Initiative (WCI) -- a regional cap-
and-trade program including seven western states (California notably among them) and four Canadian
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provinceshas established a regional target for reducing heat-trapping emissions of 15 percent below
2005 levels by 2020.
VOLUNTARY MARKET:
PARTICIPANTS:
A wide range of participants are involved in the voluntary market, including providers of
different types of offsets, developers of quality assurance mechanisms, third party verifiers, and
consumers who purchase offsets from domestic or international providers. Suppliers include for-profit
companies, governments, colleges and universities, and other organizations.
MOTIVATIONS:
According to industry analyst Ecosystem Marketplace, the voluntary markets present the
opportunity for citizen consumer action, as well as an alternative source of carbon finance and an
incubator for carbon market innovation. In their survey of voluntary markets, data has shown that
Corporate Social Responsibility and Public Relations/Branding are clearly in first place among
motivations for voluntary offset purchases, with evidence indicating that companies seek to offset
emissions "for goodwill, both of the general public and their investors."
In addition, regarding market composition, research indicates: "Though many analysts

perceive pre-compliance buying as a dominant driving force in the voluntary market, the results of our
survey have repeatedly indicated that pre-compliance motives remain secondary to those of the pure
voluntary market (companies/individuals offsetting their emissions).
PRECOMPLIANCES AND TRADING:

The other main categories of buyers on the voluntary markets are those engaged in pre-
compliance and/or trading. Those purchasing offsets for pre-compliance purposes are doing so with the
expectation, or as a hedge against the possibility, of future mandatory cap and trade regulations. As a
mandatory cap would sharply increase the price of offsets, firms, especially those with large carbon
footprints and the corresponding financial exposure to regulation makes the decision to acquire offsets
in advance at what are expected to be lower prices.
The trading market in offsets in general resembles the trade in other commodities markets,
with financial professionals including hedge funds and desks at major investment banks, taking
positions in the hopes of buying cheap and selling dear, with their motivation typically short or medium
term financial gain.
RETAIL MARKET:
Multiple players in the retail market have offerings that enable consumers and businesses to
calculate their carbon footprint, most commonly through a web-based interface including a calculator
or questionnaire, and sell them offsets in the amount of that footprint. In addition many companies
selling products and services, especially carbon-intensive ones such as airline travel, offer options to
bundle a proportional offsetting amount of carbon credits with each transaction. Few voluntary offsets
operate under both nonprofit and social enterprise models, or a blended approach sometimes referred to
as triple bottom line. Other participants include broader environmentally focused organizations with
website subsections or initiatives that enable retail voluntary offset purchases by members, and
government created projects such as the UK's Carbon Trust.
CONCLUSION:
Thus CARBON CREDIT is an innovative combination in both financial as well as
environmental aspects that yields considerable profit to the society as well as individuals. A general
aware about these kinds of financial aspects has to create amongst todays generation to initiate few
more innovations in the finance sectors. Hence appreciation of these kind of financial instrument is
very essential to make this earth a exist able planet for the future generation.
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INVENTION OF IDEAS AND STRATEGIES IN INVESTING
K.Damodaran, Asst.Prof, Professional School of Management.
The Risks of Investing In Emerging Markets
Investing is always risky business; corporate scandals regularly surface in the news, corporate
bonds are frequently downgraded, accounting fraud is often revealed and market imperfections such
as the flash crash continuously bring a level of uncertainty. Even the most stable domestic blue chip
companies will face times of tremendous volatility. Emerging markets offer numerous benefits to
investors such as elevated economic growth rates, higher expected returns and diversification benefits.
However, there are a number of important risks to consider before investing in regions outside of the
developed world.
1).Foreign Exchange Rate Risk

Foreign investments in stocks and bonds will typically produce returns in the local currency of
the investment. As a result, investors will have to convert this local currency back into their domestic
currency. An American who purchases a Brazilian stock in Brazil will have to buy and sell the
security using the Brazilian real. Therefore, currency fluctuations can impact the total return of
investment. If, for example, the local value of a held stock increased by 5%, but the real depreciated
by 10%, the investor will experience a net loss in terms of total returns when selling and converting
back to U.S. dollars.
2) Non-Normal Distribution
North American market returns arguably follow a pattern of normal distributions. As a result,
financial models can be used to price derivatives and make somewhat accurate economic forecasts
about the future of equity prices. Emerging market securities, on the other hand, cannot be valuated
using the same type of mean-variance analysis. Also, because emerging markets are undergoing
constant changes, it is almost impossible to utilize historical information in order to draw proper
correlations between events and returns.
3) Lax Insider Trading Restrictions

Although most countries claim to enforce strict laws against insider trading, none have proved
to be as rigorous as America in terms of prosecuting unfair trading practices. Insider trading and
various forms of market manipulation introduce market inefficiencies, whereby equity prices will
significantly deviate from their intrinsic value. Such a system can be subject to extreme speculation,
and can also be heavily controlled by those holding privileged information.
4) Less Liquidity
Emerging markets are generally less liquid than those found in the developed world. This
market imperfection results in higher broker fees and an increased level of price uncertainty. Investors
who try to sell stocks in an illiquid market face substantial risks that their orders will not be filled at
the current price, and the transactions will only go through at an unfavorable level. Additionally,
brokers will charge higher commissions, as they have to make more diligent efforts to find
counterparties for trades. Illiquid markets prevent investors realizing the benefits of fast transactions.
5) Difficulty Raising Capital

A poorly developed banking system will prevent firms from having the proper access to
financing that is required to grow their businesses. Attained capital will usually be issued at a high
required rate of return, increasing the company's weighted average cost of capital (WACC). The major
concern with having a high WACC is that fewer projects will produce a high enough return to yield a
positive net present value. Therefore, financial systems found in developed nations do not allow
companies to undertake a higher variety of profit-generating projects.
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6) Poor Corporate Governance System

A solid corporate governance structure within any organization is correlated with positive
stock returns. Emerging markets sometimes have weaker corporate governance systems, whereby
management, or even the government, has a greater voice in the firm than shareholders. Furthermore,
when countries have restrictions on corporate takeovers, management does not have the same level of
incentive to perform in order to maintain job security. While corporate governance in the emerging
markets has a long road to go before being considered fully effective by North American standards,
many countries are showing improvements in this area in order to gain access to cheaper international
financing.
7) Increased Chance of Bankruptcy

A poor system of checks and balances and weaker accounting audit procedures increase the
chance of corporate bankruptcy. Despite that bankruptcy is common in every economy; such risks are
most common outside of the developed world. Within emerging markets, firms can more freely cook
the book to give an extended picture of profitability. Once the corporation is exposed, it experiences a
sudden drop in value. This is not to say that such occurrences do not happen in North America and
Europe.
Because emerging markets are viewed as being more risky, they will have to issue bonds that
pay higher interest rates. The increased debt burden further increases borrowing costs and strengthens
the potential for bankruptcy.
THE INVESTMENT RISKS -

How to deal with them?
The fact is that you cannot get rich without taking risks. Risks and rewards go hand in hand;
and, typically, higher the risk you take, higher the returns you can expect. In fact, the first major
Zurich Axiom on risk says: "Worry is not a sickness but a sign of health. If you are not worried, you
are not risking enough". Then the minor axiom says: "Always play for meaningful stakes".
The secret, in other words, is to take calculated risks, not reckless risks.
In financial terms, among other things, it implies the possibility of receiving lower than
expected return, or not receiving any return at all, or even not getting your principal amount back.
Every investment opportunity carries some risks or the other. In some investments, a certain type of
risk may be predominant, and others not so significant. A full understanding of the various important
risks is essential for taking calculated risks and making sensible investment decisions.
CONCLUSION
Investing in emerging markets can produce substantial returns to one's portfolio. However,
investors must be aware that all high returns must be judged within the risk and reward framework.
The aforementioned risks are some of the most prevalent that must be assessed prior to investing.
Unfortunately, however, the premiums associated with these risks can often only be estimated, rather
than determined on a concrete basis.
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AN ANALYSIS OF FINANCIAL BEHAVIOUR OF INVESTORS IN
MUTUAL FUND INVESTMENT
S.N.Selvaraj, H.Shamin and C.Dhanya Asst. Profs, Wisdom School of Management, Udumalpet
Introduction
Mutual Funds came into existence to provide an investment opportunity to such people who
do not want to take much risk. The savings of the investors have to be mobilized for a productivity use
and this is possible only by certain types of investment. The mutual fund is basically a risk reduction
tool is achieved by diversification of the portfolio. It designs, its schemes to meet the needs of
different types of investors in terms of nature of investments, dividend distribution and liquidity, etc.
The superfluity of schemes provides variety of options to suit the individual objectives whatever their
age, financial position, risk tolerance and return expectations.
Overview of Literature
MF investments bring a new era in the history of investment world. On the one hand it
reduces the tax burden of the investors and it gives a considerable amount of return without having a
large amount of risk burden. Due to its multiple advantages as an investment avenue, it creates
interest in researchers and academicians to do research on it. There have been a less number of
studies conducted in India as compared to the developed capital markets. It is obvious that the studies
done both in India and abroad regarding the fund selection behavior of individual investors.
MF as Investment Portfolio
Mutual Funds are wonderful investments for people who have little time or interest in tracking
a portfolio of investments themselves. Other benefits of mutual funds include their ability to capitalize
on economies of scale and reasonably create a widely diversified portfolio for small investors. An
investor who lacks the knowledge to manage their own investment can turn to the mutual fund and let
a professional handle all the securities, analysis and questions of when to buy or sell for them. This
works so well that better than 95 million people invest in mutual funds, making them the largest
financial intermediary in the United States. The investors in mutual funds may be newcomers to
investing or they may be experienced investors.
Importance of Awareness
Awareness belongs to internal characteristics of their investment decision. It is essential for
the AMCs to know the level of awareness about MF among investing public. This will enable them to
create an external environment that can influence investment decisions of investors. The study
measures the general awareness level among individual investors also to find out the result. AMCs
should take not of this and follow a segmented approach in marketing the product and in creating
awareness. The results of Chi-square test shows the dependency between awareness level and each
demographic factor such as age, income and gender separately.
Objectives of the Study

The present study has the following general objectives:
To examine the savings interest among individual investors.
To examine the fund/scheme preference of investors.
To understand the preferential feature in the savings instrument.
To examine mutual fund conceptual awareness among the present investors.
Research Methodology
In the preliminary stage, we gathered a database of MF investors from different brokers and
fixed appointments with them. We have selected 40, 40 and 60 investors in Komarapalayam,
Tiruchengode and Namakkal Towns respectively. Out of 140 investors it was restricted to 100
investors due to some difficulties and had personal interview with them.
Sampling Design
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The target respondents include all such individual investors who have invested in MFs and
have some knowledge about the basic terminologies of MFs. However, the sampling has turned out
be a convenient sampling systematically chosen from blocks of the area conveniently located for the
enumerators.
Data Collection
The enumerators visited the investors according to the appointment fixed with them. They
filled up the interviewer administered questionnaire with feedback from the respondents. The data
collection went on for 45 days during November 2010- January 2011.
Analysis
The responses to the different questions have been represented using a pie chart. Ranks have
been provided in the tables in respect of the respondents for the different (1) savings instrument
preference among individual investors; (2) current attitude of investors towards the fund/scheme
preference (3) understanding the preferential features in the savings instrument among investors.
Weights in percentage have been assigned to the ranks to scrutinize the analysis.
A chi-square test has been done to examine whether there exists any dependency between
awareness level and each demographic factor such as age, income and gender separately.
Data Analysis
Savings Interest among Individual Investors
The savings interest of majority of individual investors is to provide for purchase of assets
followed by the intention to meet contingencies and tax reduction. Asset Management Companies
(AMCs) can attract investors by designing products that ensure a reasonable return and ensure safety
of the capital. The tax saving instrument would also provide to be lucrative if marketed effectively.
Figure 1: Savings Interest among Individual Investors
17%
22% To meet contingencies
To provide for retirement
For tax reduction
24% 16% For purchase of assets
For children's education
21%
Preference for Savings Instruments

The investment attitude of investors is highlighted by their asset preference pattern. The study
reveals that bank deposits are the most popular savings instrument among investors of Namakkal
District, as they are unique financial products which enable an average salaried person to get a
balanced proportion of reasonable returns, along with safety of capital and liquidity. (Table:1). The
liquidity provided will help investors meet the contingencies, which is one of their primary objectives
of saving. This is followed by Life Insurance which again ensures safety of the capital along with
reasonable returns and also provides Tax Savings. UTI MF occupies the third position highlighting its
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growing popularity among retail investors. The other saving instruments are not so popular due to the
lack of awareness among investors.
Table:1
Savings Instruments Preference % Priority
Currency 7.06 IX
Bank Deposit 14.72 I
Life Insurance 14.26 II
Pension and Provident Fund 11.14 IV
Shares 9.90 V
UTI MF 11.82 III
Postal Savings 9.36 VII
Chits 2.72 X
Real Estate 9.14 VIII
Gold 9.88 VI
Fund/Scheme Preference among Investors
Mutual Funds provide a superfluity of options, ranging from growth schemes to fixed income
schemes. Nowadays, investors are not offered just plain vanilla schemes but assorted schemes in tune
with their personal preferences. According to Table 2, MF scheme preference for the majority of
investors is growth scheme followed by income scheme. The investors are interested in earning
higher return rather than regular safe returns.
Table:2
Schemes of MF Preference % Priority
Growth Fund 23.56 I
Balance Fund 17.48 III
Income Fund 19.40 II
Money Fund 16.20 IV
Tax Fund 12.08 V
Index Fund 11.28 VI
Analysis of scheme preference by nature of operation reveals the popularity of open-ended
schemes. In India, majority of the schemes are open-ended as investors can buy or sell units at NAV
related prices whenever they wish. The preference for open-ended scheme has also given due
importance to liquidity and flexibility to enter and exit at wish, which is given high importance by
the investors in selecting an investment avenue. On the other hand, only few of the respondents (6%)
have voted for interval schemes which shows lack of awareness with regard to the scheme benefits.
Figure 2: Preference for MF Schemes among Investors
6%
Open-ended scheme
34% Close-ended scheme
60% Interval scheme
Preferential Feature in the Savings Instrument among Individual Investors

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The Chairman of UTI, has summarized the psyche of a typical Indian investor in three words
yield, security and liquidity. Table 3 shows that the investors need for safety is foremost, followed
by good return, liquidity, flexibility, tax benefit, capital appreciation, diversification benefits and
professional management.
Table 3: Preference for Different Features of Mutual Funds

Safety 15.86 I
Liquidity 14.76 III
Flexibility 13.66 IV
Good Return 14.86 II
Tax Benefit 12.18 V
Capital Appreciation 10.04 VI
Professional Management 8.70 VIII
Diversification Benefit 9.94 VII
MF Conceptual Awareness Level of Individual Investors
Knowledge about the level of awareness about MFs among the investing public will enable
AMCs to create an external environment that can influence investment decisions of investors. The
study reveals that the general awareness level among individual investors regarding the concept and
functioning of MF is good. Awareness has been measured by collecting the responses to some basic
facts related to MFx. Those respondents who have given more than 50% right answers have been
categorized as aware and the rest as unaware.
Figure 3: Awareness among Mutual Fund Investors
It was found that 72% of the respondents have good awareness level of MFs as shown in
Figure 3. This could be attributed to the wide publicity given to the MF industry by the media and
investor education programs organized by AMFI from time to time. However it should be noted that
this study was based in the towns of Komarapalayam, Tiruchengode and Namakkal of Namakkal
District, where the awareness level would be considerably high. The challenge would be to educate
the less aware investors about the advantages of investing in MFs companies to the traditional saving
instruments in order to encourage investment in mutual funds.
We further analyzed the relationship between awareness and the demographic variables like
gender, age and income. We formulated three hypotheses to test their independence using the chi-
square test. The results are tabulated and interpreted herein.
Hypotheses
H01: Awareness is independent of gender
H02: Awareness is independent of age
H03: Awareness is independent of income
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Gender
From chi-square tests (Table 4), it is evident that awareness of investors is independent of
gender. The null hypothesis is accepted at significance level of 54%. It is found that awareness of
respondents is not dependent in respect of gender.
Table 4: Results of Chi-Square Test for Hypothesis H01
Awareness
Total
0.00 1.00
Male 21 58 79
Gender
Female 7 14 21
Total 28 72 100
Chi-Square Tests
Value df Asymp.Sig (2-sided)
Pearson Chi-Square 0.375 1 0.540
Age
From Table 5, we can infer that the conceptual awareness of investors is significantly
dependent on age as we can reject the null hypothesis at significance level of 6.7% or more. In other
words, awareness is dependent on age. It is found that respondents belonging to less than 40 age
bracket are well aware of the MFs as compared to the respondents of higher than 40 age bracket.
This can probably be attributed to the fact that they are risk-averse and are generally inclined towards
parking their funds in government securities, bank deposits, LIC, etc. Thus AMCs have a major role
in creating awareness amongst the respondents belonging to higher age group which in turn will fetch
a considerable amount of investment for the industry.
Awareness
Total
0.00 1.00
Below 30 9 31 40
3140 4 21 25
Age
4150 9 9 18
Above 50 6 11 17
Total 28 72 100
Chi-Square Tests
Income
From Table 6, we can infer that the conceptual awareness of investors is significantly
dependent on their level of income. We can reject the null hypothesis at significance level of 11.1%
or more. It is found that respondents having monthly income below 300,000 are well aware of the
MFs in comparison to the respondents having monthly income more than 300,000. This can probably
be attributed to the fact that people belonging to low income group are more cautious about their
money. Hence, before parking their hard earned money in different available investment avenues,
they always gather as much information possible. But it is just the opposite in the case of the
respondents belonging to the higher income bracket, who mostly depend on the brokers and advisors.
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Awareness
Total
0.00 1.00
Below 100000 6 10 16
100001-300000 7 37 44
Income
300001-500000 9 17 26
Below 100000 6 8 14
Total 28 72 100
Chi-Square Tests
Further Suggestions
Since the investors preference for liquidity is found to be high, we suggest more of the new
schemes to be open-ended.
AMCs should endeavour to design suitable schemes to meet the multiple needs of adequate
returns, safety and liquidity in a reasonable proportion as these features have rated high by
individual investors.
Investors can be categorized into various segments such as young families with small or no
children looking for high returns, middle-aged people saving for retirement, retired people
looking for regular income and suitable products can be designed to meet the preference of
each class.
Products such as growth and balanced schemes for young families and income schemes with
regular and reasonable returns for retired people can be designed and marketed to the right
customers.
Pension funds are likely to be a big driver for the MF industry in the new future. So they need
to design suitable funds and market the same effectively.
Negative perceptions and unawareness among investors about MFs could be tackled through
appropriate investor education measures.
It is suggested that AMFI may set aside a percentage of membership fee that it collects from
the AMCs and create a fund for Investor Education Programs.
Advisory services are becoming more critical to investors and independent financial advisors
and planners are becoming popular.
Banks are planning to enter the advisory services in a big way and this would open an
extensive distribution channel given the customer base of the banks.
An entirely new distribution channel can be created consisting of professional advisors, as in
the case of life insurance agents, who will exert substantial influence on what products
investors will buy.
Electronic sale financial products are gaining volumes with the widespread acceptability of e-
buying. Therefore, AMCs should establish friendlier and easily accessible automated
response systems to encourage the this type of investments.
Conclusion
MF industry is India has a large untapped market. There is a great potential for this industry
as more people are falling back on professional management of their funds at low cost and minimum
risk. This market potential can be tapped by closely scrutinizing investor behaviour to identify their
expectations and design products to suit their risk appetite and return expectations. Presently, as more
and more funds are entering the industry, strategic marketing decisions of these companies are vital
for their survival. Investors have become more alert and choosy. Hence, the success of an MF
depends on complete understanding of the psychology of the small investor. Under such a situation,
the present exploratory study is an attempt to understand the financial behaviour of MF investors in
connection with scheme preference and selection which would help the MFs to gauge the investor
expectations and changing perception.
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CONTEMPORARY ISSUES IN E-BANKING
Mrs.D.Charumathi & Mrs.V.Uma Maheswari, Guru Nanak College
INTRODUCTION:
Banks use technology to provide quality products and services. For quite a long time banks
have been using electronic and telecommunication networks for delivering a wide range of value
added products and services. Due to internet revolution and easy access to Internet and World Wide
Web (WWW), banks are using Internet as a delivery channel. One of the challenges faced by banks
is in delivery of their products and services in efficient manner to their customers. In order to satisfy
their customers banks focus on integrated channels like ATMs, Internet Banking, Mobile Banking,
Debit Cards, Credit Cards etc. Through these integrated channels banks reaches many customers but
still these channels poses challenges to the banks and the customers.
Internet Banking:
Internet penetration in India has witnessed a dramatic growth in last few years. Now India is
in the 5th position worldwide. United States, China, Japan and Germany are in the first four
positions respectively. India will soon cross Germany which has a total net population of 50 million.
The Internet Banking can be classified into three levels:
First Level - Banks websites disseminate information on different products and services
offered to their customers
Second Level - Simple Transactional Websites allows their customers to submit their
instructions, applications for different services, queries on their account balances, etc, but do not
permit any fund-based transactions on their accounts
Third Level - Fully Transactional Websites that allows their customers to operate on their
accounts for transfer of funds, payment of different bills, subscribing to other products of the bank
and to transact purchase and sale of securities, etc.
Findings of Internet & Mobile Association of India shows the most popular online activities
undertaken by Internet users in India in 2005 (as a % of respondents): E-mail and IM: 98%, Job
search: 51%, Banking: 32%, Bill payment: 18%, Stock trading: 15%, Matrimonial search: 15%.
From this it is inferred that banking through Internet is popular among Indians.
Opportunities in Internet Banking:

Now almost all Indian Banks are giving free internet banking facility. ICICI bank alone
conducts around 17,000 online transactions per day. Banks also offer many added features like bill
payment, fund transfer, online money order, pre-approved online loans, insurance and telephone
payment, online check book request and standing instructions, prepaid mobile recharge, account
statement via email, demat services, investments etc.
Challenges in Internet Banking:

Though Internet Banking is popular in India, it faces challenges such as:
Infrastructure, lack of user friendliness, lack of the facility in the current bank etc.,
Traditional mind setup - There are customers who do not prefer Internet Banking due the factors like
security concerns, preference for face-to-face transactions, lack of knowledge about transferring
online. India, by comparison, is overwhelmed by weak infrastructure, low PC penetration,
developing security protocols and consumer reluctance in rural sector
Security Threats in Internet Banking:

Phishing:
Spyware and Adware
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Viruses
Trojans:
Keyloggers
Mobile Banking:
Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for
performing balance checks, account transactions, payments, credit applications and other banking
transactions through a mobile device such as a mobile Phone or Personal Digital Assistant (PDA).
Mobile banking has often been performed via SMS or the Mobile Web. The growth of IPhone and
Androids has led to increasing use of special client programs, in mobile device.
Opportunities in Mobile Banking:

The potential of mobile banking in India is huge, especially with a large unbanked
population. With the increasing mobile penetration in rural areas, mobile banking is seen as a tool to
facilitate financial inclusion of the rural population. In the urban environment, it is seen as a tool for
convenience as it facilitates faster small-scale transactions. Several leading banks are tying up with
telecom operators and handset manufacturers to provide this facility in order to enhance customer
service and facilitate branchless banking. Operators and leading banks are partnering to provide a
suite of mobile banking services. Recent examples include the State Bank of India (SBI) and ICICI
Banks partnerships with Bharti airtel and Vodafone Essar respectively. The service is witnessing
increased uptake in urban areas with more consumers availing of mobile banking facilities for
paying utility bills, accessing bank account information and making ticket payments. In rural areas,
this service is poised to take off with operators focusing on the rural sector to provide services
tailored for the rural community.
Challenges in Mobile Banking:

Some of the challenges faced by Mobile Banking are:
Security:
Security of financial transactions, being executed from some remote location and
transmission of financial information over the air, are the most complicated challenges that need to
be addressed jointly by mobile application developers, wireless network service providers and the
banks' IT departments.
Scalability & Reliability:

Another challenge for the banks is to scale-up the mobile banking infrastructure to handle
exponential growth of the customer base. With mobile banking, the customer may be sitting in any
part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems
are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more
useful, their expectations from the solution will increase. Banks unable to meet the performance and
reliability expectations may lose customer confidence.
Application distribution:
Due to the nature of the connectivity between bank and its customers, it would be
impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade
of their mobile banking application. It will be expected that the mobile application itself check the
upgrades and updates and download necessary patches (so called "Over The Air" updates).
Types of ATMs:
Onsite ATM is situated either within the branch premises or in very close proximity of
the branch.
Offsite ATM is not situated within the branch premises but is located at other places,
such as shopping centres, airports, railway and petrol stations
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Worksite ATM is located within the premises of an organization and is generally meant
only for the employees of the organization
Cash dispenser allows only cash withdrawal, balance enquiry, and mini statement
requests. Unlike an ATM, Cash Dispenser cannot be used for depositing cash or cheques.
Mobile ATM refers to an ATM that moves in various areas for the customers. Few
private banks have introduced ATM on wheels.
Opportunities for ATMs:

The ATM market in India has high market potential. The demand for ATM is increasing in
non-metros and rural areas. The growth rate is expected to grow by 18 percent by 2013. Banks have
specialized machines with bio metric devices for authentication. They also use local language and
graphical user interface to attract the rural population. It provides 24 x 7 and 365 days a year service
& allows for privacy in transactions. ATM enables cardholders to access cash at any location
regardless of where they maintain their accounts.
Challenges for ATMs:

There are problems in ATM like insufficient funds, server problem, machine problem, non-
availability of challans in the ATM centre. ATM also faces security problem like
A layout of the ATM centre does not allow sufficient space for a person to drop a cheque
in the drop box without obstructing a person making a cash transaction.
The transparency of the glass at the ATM gate gives a full view of the cash transaction.
Security guards at ATMs may not be up to the standards of a guard, which acts as a
security threat.
CONCLUSION:
Though Banking Sector faces many challenges the number of opportunities they pose is
abound. The major challenge for e-banking is security threat which can be overcome through
customer awareness programmes. The bank should take the initiative to conduct as many awareness
camp as possible which will not only bring down the security threats but also increase the customer
base who has a psychological barriers towards using e-banking.
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CONTEMPORARY ISSUES & FUTURE OF INDIAN BANKING SECTOR
G. Kiruthika, Lecturer, SSM College of Engineering, Komarapalayam, Namakkal Dist
Introduction
Banking scenario has changed rapidly since 1990s. The decade of 90s has witnessed a sea
change in the way banking is done in India. Technology has made tremendous impact in banking.
Anywhere banking and Anytime banking have become a reality. The financial sector now operates
in a more competitive environment than before and intermediates relatively large volume of
international financial flows. In the wake of greater financial deregulation and global financial
integration, the biggest challenge before the regulators is of avoiding instability in the financial
system.
Reforms
On 14th August 1991, the Government of India (GOI) appointed a Committee headed by
Mr.M.Narashimham (called Narashimham Committee I) to suggest the modus operandi for
reforms of the Banking Sector. On 16th November 1991, the said Committee submitted its Repost
suggesting downsizing of PSBs through closure of Branches, merger of PSBs, reduction of priority
sector lending from the then prevailing 40% to 10% of total advance portfolio, abolition of Banking
Service Recruitment Board, granting of more autonomy to PSBs in respect of both financial and
administrative matters, to reduce the supervisory and regulatory control of Reserve Bank of India
(RBI), the Central Bank of the country, and, to top it all, dilution of Government Holding in PSBs
through suitable amendment of relevant legislations.
Thereafter, a number of committees, such as Narashimham Committee II, Khan Committee,

Verma Committee, S.C.Gupta Committee, Raghuram Rajan Committee, Anwarul Hoda Committee,
to name a few, have been appointed to assess the progress in implementation of the Recommendations
of the Narashimham Committee I as also to suggest measures for carrying forward the reforms of
the Banking Sector further as per dictates of the World Bank-IMF. Following the Recommendations
of these Committees, successive Governments have persistently been trying to carry forward the
reforms dictated by World Bank-IMF.
In the process, law has been amended to pave the way for reduction of Govt. holding of shares
in PSBs from 100% to 51% and, in pursuance of such amendment, most of the PSBs (except two
major PSBs and two subsidiaries of State Bank of India) have made public issue of shares, thus,
reducing Government holding.
Instead of filling up more than one-hundred thousand vacant posts through employment, the
PSBs have reduced its workforce through Voluntary Retirement Scheme on the one hand, and, on the
other outsourcing even the regular and core banking jobs to outside agencies.
The role of RBI, as the regulatory and supervisory authority over the Banks, have been
redefined and undermined considerably. RRBs have been directed to give more emphasis on
conventional Banking and, consequently, its priority lending stands reduced to around 40% (from
70%) of total advances today.
Review of Literature
Berger & Humphrey (1997) pointed out that out of 130 efficiency analyses of depository
financial institutions, covering 21 countries; only about 5% examined the banking sectors of
developing countries. They also noted that a vast majority (about 75%) of the researchers focused on
the banking markets of well developed countries with particular emphasis on US market. The
relatively scant literature on the bank efficiency in emerging markets like India focused mainly on the
efficiency differentials among banks with different ownership status and asset size. In India, research
on the performance and efficiency of Indian banking industry is limited in the existing literature.
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Notable among these are Swami and Subrahmanyam (1994), Zaim (1995), Noules and Katkar (1996),
Bhattacharya (1997), Das (1997a, 1997b, 2000), Leighter and Lovell (1998), Saha and Ravisankar
(2000), Shanmugam and Lakshmansamy (2001), and Mukherjee et al. (2002).
Economic outlook and banking sectors performance

Keeping in mind the impact of real sector shocks on financial stability, any assessment of the
banking sector needs to be done in the backdrop of national as well as international economic outlook.
During the last couple of years, global growth has been above the forecast in almost every region
stimulated by strong monetary and fiscal measures. The domestic economic outlook is also bright with
the real GDP growth rate surpassing 8% last year and estimated to be around 7% in the current year.
Industrial performance also improved considerably with a strong manufacturing growth for the second
consecutive year. Inflation rate has been under control, barring some hiccup for a short period. Aided
by a good macro economic environment, banks bottom line has improved significantly over the last
two years. However, let us not forget that a major contributor to the windfall gains has been treasury
profits fuelled by a secular decline in interest rates during the three years period from 2008 to 2010
and consequent profit booking on sale of government securities. From the current year, with the
hardening of interest rates, this trading component of profits is no longer going to shore up banks
profitability. On the contrary, most banks have been required to provide for the decline in the market
value of their investments portfolio. Fortunately, one offsetting factor has been the strong pick up in
the credit off-take due to buoyant demand in the economy and revival of industrial activity, which
have resulted in substantial increase in banks core interest income.
Globalization of financial services

Growing integration of economies and the markets around the world is making global banking
a reality. The surge in globalization of finance has also gained momentum with the technological
advancements which have effectively overcome the national borders in the financial services business.
Widespread use of internet banking has widened frontiers of global banking, and it is now possible to
market financial products and services on a global basis. In the coming years globalization would
spread further on account of the likely opening up of financial services under WTO. India is one of the
104 signatories of Financial Services Agreement (FSA) of 1997. This gives Indias financial sector
including banks an opportunity to expand their business on a quid pro quo basis.
Indian Banks at the global stage: A Reality check

As per Indian Banks' Association report Banking Industry Vision 2020, there would be
greater presence of international players in Indian financial system and some of the Indian banks
would become global players in the coming years. So, the new mantra for Indian banks is to go global
in search of new markets, customers and profits. Everyone should not forget that the competition is
not only on foreign turf but also in the domestic field as well from foreign banks operating in India.
Now against these lofty objectives of Indian banks going global, we have to see where we stand.
Although, Indian banks have also made their presence overseas, yet it is limited. Only twenty Indian
banks including private sector banks appear in the list of Top 1000 World Banks as listed by the
London based magazine The Banker. What is even more revealing is that State Bank of India,
Indias largest bank, ranks 57th amongst the top global banks. Size is increasingly becoming important
for the global banks as it is crucial to improved efficiency.
Consolidation and move towards Universal Banking

We are slowly but surely moving from a regime of large number of small banks to small
number of large banks. The new era is going to be one of consolidation around identified core
competencies. Mergers and acquisitions in the banking sector are going to be the order of the day.
Successful merger of HDFC Bank and Times Bank earlier and Stanchart and ANZ Grindlays three
years ago has demonstrated that trend towards consolidation is almost an accepted fact. We are also
looking for such signs in respect of a number of old private sector banks, many of which are not able
to cushion their NPAs, expand their business and induct technology due to limited capital base.
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Coming times may usher in large banking institutions, if the development financial institutions opt for
conversion into commercial banking in line with the recommendation of Narasimhan (II). In India,
one of the largest financial institutions, ICICI, took the lead towards universal banking with its reverse
merger with ICICI Bank coming through a couple of years ago. Another mega financial institution,
IDBI has also adopted the same strategy, and has already transformed itself into a universal bank.
Now the process of its progeny IDBI Bank merging itself with the parent IDBI is underway, and is
likely to be completed soon. This trend may lead logically to promoting the concept of financial super
market chain, making available all types of credit and non-fund facilities under one roof or specialized
subsidiaries under one umbrella organisation. Consolidated accounting and supervisory techniques
would have to evolve and appropriate fire walls built to address the risks underlying such large
organisations and banking conglomerates.
Will the stable conditions continue for the banks?

The big question we have to ponder is whether these stable conditions marked by all round
improvement in banks performance can continue into 2005 onward in the light of potentially
dramatic changes that include, among others, a sliding dollar, rising interest rates, introduction of
Basel II accord and international accounting standards, and the possible flattening of consumer
lending boom. Hopefully, the banking industry in tandem with the regulatory authorities will rise to
the occasion, and collectively face the challenges and opportunities that lie ahead.
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THE INITIATIVES AND IMPACT OF INDIAN BANKING SECTOR ON
FINANCIAL INCLUSION
S.Vijay Mallik Raj, Assistant Professor, OAA MAVMM School of Management, Kidaripatti Post,
Madurai
INTRODUCTION:
Policymakers across the world have begun to pay closer attention to increasing financial
inclusion. Research in the last decade leads us to believe that a well-functioning and inclusive financial
system is linked to faster and equitable growth (Honohan, 2004).
Millions of households and individuals are affected by serious levels of financial exclusion
and insecurity. This is one of the greatest public policy challenges currently facing society and if
policymakers, industry, consumer advocates, and other stakeholders dont work together to develop
solutions, millions of individual consumers will be condemned to bleak financial futures. Financial
inclusion denotes delivery of financial services at an affordable cost to the vast sections of the
disadvantaged and low-income groups. The various financial services include credit, savings, insurance
and payments and remittance facilities
Financial inclusion has become a buzzword internationally even in developed financial

markets there are concerns about those excluded from the banking system. The barriers to access to
formal banking system have been identified as relating to culture, education (especially financial
literacy), gender, income and assets, proof of identity, remoteness of residence, and so on. Efforts are
being made by the authorities- especially banking regulators to improve access to affordable financial
services through financial education, leveraging technology and generating awareness in order to create
enabling conditions such that markets become more open, more competitive, affordable and inclusive
Unavailability of financial services to a vast section of the population hinders the prospects of the entire
Indian economy. The objective of financial inclusion is to extend the scope of activities of the
organized financial system to include within its ambit people with low incomes. As banking services
are in the nature of public good, it is essential that availability of banking and payment services to the
entire population without discrimination is the prime objective of the public policy. The Indian
Banking industry has shown tremendous growth in volume and made significant improvements in all
the areas relating to financial viability, profitability and competitiveness. But vast segment of the
population, especially the underprivileged sections of the society are still out of banks fold.
The financially excluded people should be made a part of the formal banking system so that
they may have the benefit which is used by other segments of people. When they become financially
inclusive, their financial situation is more stable and they also enjoy a basic service such as banking.
Financial Inclusion does not merely mean access to credit for the poor, but also other financial services
such as Insurance. Financial Inclusion therefore, is delivery of not only banking, but also other
financial services like insurance, pension, remittance, mutual funds, etc. delivered at affordable, though
market driven costs .Once the first step of safety of savings is achieved, the poor require access to
schemes and products which allow their savings to grow at rates which provide them growth beyond
mere inflation protection
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Figure 1: Scope of financial Inclusion

Source: Rural planning and credit department, Reserve Bank of India
CAUSES FOR EXCLUSION:

Financial Exclusion is a state where individuals cannot access the financial products and
services that they need. People experiencing financial exclusion typically exhibit one or more of the
following characteristics:
A lack of key financial products such as a bank account, insurance, savings products and pensions
and the financial services that come with them
A reliance on alternative forms of credit such as doorstep lenders and pawnbrokers
The major barriers for poor to access appropriate financial services include socio-economic
factors (e.g., education, gender and age, low and irregular income and geography), regulatory factors
(e.g. provision of identity documentation) and product design factors (e.g., minimum account
balances).
People who are excluded includes Marginal Farmers, Landless Labourers, Oral lessees, Self
employed and unorganized sector enterprises, Urban slum dwellers, Migrants / ethnic minorities &
socially excluded groups, Senior Citizens and Women
According to National Sample Survey Organisation (NSSO) data 45.9 million farmer
households in the country (51.4%), out of a total of 89.3 million households do not access credit,
either from institutional or noninstitutional sources. Further, despite the vast network of bank
branches, only 27% of total farm households are indebted to formal sources (of which one-third also
borrow from informal sources). Farm households not accessing credit from formal sources as a
proportion to total farm households is especially high at 95.91%, 81.26% and 77.59% in the North
Eastern, Eastern and Central Regions respectively. Thus, apart from the fact that exclusion in general
is large, it also varies widely across regions, social groups and asset holdings. The poorer the group,
the greater is the exclusion.
INDIAN SCENARIO:
Limited access to affordable financial services such as savings, loan, remittance and insurance
services by the vast majority of the population in the rural areas and unorganized sector is a constraint
to the growth impetus in the Primary and Small and Medium Enterprises sector. With a huge rural
population, that is economically challenged, the Government in India has rolled out many initiatives
and policy measures.
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The Eleventh Five Year Plan (2007-12) envisions inclusive growth as a key objective. The
Plan document notes that the economic growth has failed to be sufficiently inclusive particularly after
the mid-1990s. The Indian economy, though achieved a high growth momentum during 2003-04 to
2007-08, could not bring down unemployment and poverty to tolerable levels.
To augment the growth further, a committee on Financial Inclusion (FI) was also formed in June
2006, with Dr. C Rangarajan as Chairman to recommend a strategy to achieve a higher Financial
Inclusion in the country.The committee came out with the following recommendations
a) Setting up of a National Rural Financial Inclusion Plan with a target of providing access to financial
services to at least 50 per cent (50.77 mn) of excluded rural households by 2012 and the remaining by
2015
b) Encouraging Self Help Groups (SHGs) in excluded regions, measures for urban micro-finance and
separate category of Micro Finance Institutions (MFIs)
c) Regional rural banks (RRBs) to extend banking services to unbanked areas
In order to deepen the financial system and widen the reach of financial inclusion it is crucial
for both accelerating growth and for equitable distribution, given the present stage of Indian economy.
Hence a nationwide programme on financial inclusion, Swabhimaan was launched in February,
2011 by the Government, which is focused on bringing the deprived sections of the society in banking
network to ensure that the benefits of economic growth reach everyone at all levels. This campaign
promises to bring basic banking services to 73,000 unbanked villages with a population of 2,000 and
above by March, 2012 and at least 5 crore new accounts will be opened. The facilities provided
through banking outlets will enhance social security by facilitating the availability of allied services in
course of time like micro insurance, access to mutual funds, pensions, etc. Banking facilities like
Savings Bank, recurring Deposits, Fixed deposits, Remittances, Overdraft facility, Kisan Credit Card
(KCCs), General Credit Cards (GCC) and collection of cheques will be provided
With a view to enhance the financial inclusion the Reserve Bank of India (RBI) urged banks
to review their existing practices to align them with the objective of financial inclusion. The various
measures taken by the RBI includes
1. Simplify KYC (Know Your Customer) norms.
2. Opening of No Frill accounts.
3. Introduction of General Purpose Credit Cards.
4. State Level Banking Committee {SLBC) project of 100% Financial Inclusion.
5. Engaging Business Correspondents/ Facilitators.
6. Financial Inclusion Fund / Financial Inclusion Technology Fund.
7. Financial Literacy- Credit Counselling Centres.
INITIATIVES BY THE BANKS:

The major steps taken by the banks in India towards financial inclusion are listed below
a) UNITED BANK OF INDIA:
The bank has 1452 branches of which 851 branches are located in the rural and semi urban
areas. The bank sponsors 3 Regional Rural banks in north east and I in west Bengal. Till now the bank
has opened around 10 lakh United Basic Savings account which is a No Frills Zero balance
account. The Bank has linkage with 81001 Self Help groups and extended credit to 74991 groups
amounting to rs 158 crores.The bank has extended credit to 78737 new farmers to the tune of 54.83
crores under the schemes of United Bhumiheen Kisan credit card, United Gramin sahaj credit card,
United Sahaj Rin Yojana, United Mahajan Mukti Yojana.
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b) STATE BANK OF INDIA (SBI):
The latest initiative in this front is the Bank on Bike initiative by SBI. Under this scheme,
the business correspondents will go to up to 3 villages for a couple of hours and conduct the banking
transactions. The business correspondents could be SBI employees, government servants, school
teachers or even kirana owners. The timing and duration of banking in each area would be fixed.
State Bank of India (SBI), and India post are coming together to organize a basic banking services
platform on the doorstep of the millions of people in rural areas, who are still deprived of the banking
facilities. SBI will use Indian post's wide network in its financial inclusion initiative. After this tie-up,
the postmen will act as banking correspondents for SBI in over 12,000 villages. They are supposed to
collect deposits and offer small credit and remittance facility to the people living in far-flung areas.
SBI currently has around 5,000 branches in the rural or semi-urban areas, and it hopes to cover
12,492 villages by 2012 under its financial inclusion outreach.
Hindustan Unilever (HUL), Indias leading consumer goods company, has joined hands with
SBI to promote financial inclusion in the rural areas through 'Shakti Ammas', HUL's network of self-
help groups. HUL, through its self-help groups, distribute FMCG products in remote villages with a
population of 2,000 and less. Now, with the help of SBI, the HUL groups will open bank accounts for
rural people.
The two entities have started a pilot project of financial inclusion in the States of Maharashtra
and Karnataka. As customer service providers, 12 Shakti Ammas have opened around 1,000 accounts
so far. Their plan is to take the project across the country by the end this financial year 2011-12. A
total of 43,000 Shakti Ammas have been enrolled with HUL. Over 30 lakh bank accounts are
expected to be opened this fiscal. Going by this numbers, each Shakti Amma is expected to open at
least 70 accounts in this period.
SBI and Bharti Airtel announced that they have entered into a Joint Venture (JV) agreement to
make available banking services to Indias unbanked millions. The JV as Business Correspondent will
engage Airtels retailers as Customer Service Points (CSP) all over India in a phased manner. With
this, existing and new Airtel mobile customers will be able to visit these outlets and open new SBI
bank accounts and avail of other banking products and services available at the CSPs. Additionally,
existing SBI customers will also get serviced at these outlets.
SYNDICATE BANK:
Syndicate Bank has opened more than 20 branches in villages. The bank has a target of
providing banking facilities in 1620 villages by March 2012. Syndicate Banks plan is to expand in
Tier-III, IV and V areas to tap semi-urban and rural population in under banked areas. The bank
opened its first such branch at Bhojpur in Punjab. The second one was in Palladam in Tamil Nadu.
The banks third branch under this initiative was inaugurated in Rajula town of Gujarat.
ICICI BANK:
ICICI Bank has merged with Bank of Rajasthan which has about 40% of its branches in rural
and semi-urban areas. The bank has formed IFMR Finance Foundation whose research priorities is to
understand the needs and behaviours of low-income individuals, households and small enterprises that
have traditionally been underserved by the formal financial market. Once equipped with insight about
these underserved populations, IFMR Finance Foundation supports the development of high quality
financial services that meet their needs.
UNION BANK OF INDIA:

Union Bank of India under its UnionInclusion programme launched five FI schemes which
includes opening up of eleven specialized FI branches, biometric card-to-card remittance facility for
migrant labour, Mobile Van Banking to extend banking reach to unbanked villages in Odisha on
specified days, comic book series for spreading financial literacy among rural masses.
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BANK OF BARODA:
The Bank has 1,171 rural and 832 semi-urban branches. It opened 157 new branches in rural
and semi-urban areas during 2010-11. Under its flagship agriculture loan product Baroda Kisan
Credit Card, the Bank issued as many as 2,44,558 Credit Cards during this year to provide credit to
farmers. As a part of its microfinance initiatives, the Bank credit-linked 19,257 Self Help Groups with
an amount of Rs 164 crore.
CANARA BANK:
The bank brought 1639 villages across the country under Total Financial inclusion plan. It
Covered 24.13 lakh persons under FI .The Bank has installed Bio Metric Voice enabled ATM in
sixteen semi urban locations all over the country. Bank has provided 35 vehicles in 35 potential
districts to facilitate the branches to reach the rural poor and the excluded families by using the
vehicle called 'Canara Gramina Vikas Vahini'.
IDBI BANK:
The Bank has launched the FI drive, Aarthik Vikas Kee Ore in unbanked villages of
Maharashtra.The bank also launched the Urban Financial Inclusion program at Ambedkar Nagar,
Cuffe Parade in Mumbai. IDBI Ltd has launched its no frills 'Sabka' savings account, the average
balance requirement has been considerably reduced to Rs. 250 in rural/ semi-urban branches enabling
the customers to access IDBI ATMs and branches and give them the comfort of banking 24 x 7
through phone banking and mobile banking. With a view to providing impetus for rural growth and
financial inclusion IDBI launched a Mobile Branch, the first of its kind in Maharashtra, at Satara. The
Mobile Branch consists of a Kisan ATM operated on a biometric system
AXIS BANK:
The Bank did a full production rollout of its Urban FI Initiative in Bangalore with possibility
of future scalability in the other Urban Centers of the country. Janalakshmi a well known name in
Microfinance has been appointed as the Business Correspondent to cater to the unbanked and under
banked population in the urban areas through its field executives acting as mobile Customer Service
Points (CSPs). The Point of Sale (POS) model has been used wherein the CSPs are equipped with
POS machines on which customers can carry out cash deposit and withdrawal transactions through
swipe of a debit card. The bank has joined hands with IDEA Cellular for mobile based branchless
banking initiative where the mobile platform is being used to facilitate basic banking and remittance
transactions and Ideas retail outlets are being used as CSPs The retail outlets of IDEA act as
transaction points for the customers, where he deposits cash with the retailer and transfers the
remittance amount into the No Frills Savings account of the recipient through a mobile phone. The
transaction is authenticated through an M-PIN number provided to the customer
HDFC BANK:
The Bank has approximately 33% of its branches in rural and underbanked Locations. Till
date the Bank has lent to over 45,000 self help groups covering approximately 7 lakh households
supporting their income generation activities. The Bank works with these groups either by appointing
business correspondents or through its own branch network. To this effect the Bank has opened 27
branches catering exclusively to this target segment. The Bank provides various loans to farmers
through its suite of specifically designed products such as the Kisan Gold Card. The Bank also
extends loans to Microfinance Institutions for on-lending to financially excluded households or in
many cases to them through self help groups. This program is currently spread across the country
covering 18 states with tie-ups with 110 accredited Microfinance institutions. As on March 31, 2010
with a micro lending book of over Rs. 1,400 crores the Banks micro lending initiative has reached
approximately 2 million households
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CHALLENGES:
The banks are faced with high operating cost in extending the financial services to the remote
areas. High maintenance cost of these accounts as well as small ticket size of the transactions is also
adding to the problem. Reaching out to the illiterate people or people who can handle only the
regional languages is also difficult without developing a suitable communication mode.
CONCLUSION:
Informal access to financial services and credit are highly costlier, riskier and less reliable.
Hence, making formal and affordable financial services available for the unbanked would definitely
have positive consequences on the lives of these people.
Banks should pioneer new models for delivering financial services, to customize products that meet
the needs of rural customers, to bridge gaps wherever there are missing markets and to support the
development of new technologies that enable more Indians to participate in and benefit from Indias
growth. In order to achieve that banks should work with key stakeholders including agri-based
industries, government authorities and existing rural financial intermediaries.
The banks should develop a comprehensive programme for those who are financially excluded
in the urban areas.
The banking technology initiatives meant for financial inclusion should be collaborative and
innovative with an objective to reduce the transaction costs.
Coupling government assistance with formal banking system may increase financial inclusion
better than just offering people accounts
While banks are not reaching the unbanked half of the worlds population with traditional
distribution channels of branches and ATMs, mobile phones are penetrating to the unserved. But to
fully exploit it, Mobile operators banks, and technology providers must enhance their understanding
of how unbanked (potential) consumers behave. Analyzing the needs of the unbanked can shine a
light on more effective marketing, pricing that recognizes the variable income of low-income people,
the critical nature of building out a network of cash-handling agents, and demand for service offerings
beyond remittances.
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MERGERS AND ACQUISITION
KATHIRVEL. Assistant Professor, Department of Commerce(UG), Kongunadu Arts & Science
College, K SOUNDARYAN.P, Deparrtment of Commerce(UG), Kongunadu Arts & Science
College, Coimbatore
INTRODUCTION OF THE STUDY

Mergers and acquisitions (M&A) refers to the aspect of corporate strategy, corporate
finance and management dealing with the buying, selling, dividing and combining of
different companies and similar entities that can aid, finance, or help an enterprise grow rapidly in its
sector or location of origin or a new field or new location without creating a subsidiary, other child
entity or using a joint venture.
Distinction between Mergers and Acquisitions

New company stock is issued in its place. For example, both Daimler-Benz and Chrysler
ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was
created. Although they are often uttered in the same breath and used as though they were
synonymous, the terms merger and acquisition mean slightly different things
When one company takes over another and clearly established itself as the new owner, the purchase is
called an acquisition. From a legal point of view, the target company ceases to exist, the buyer
"swallows" the business and the buyer's stock continues to be traded.
In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to
go forward as a single new company rather than remain separately owned and operated. This kind of
action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered
and
In practice, however, actual mergers of equals don't happen very often. Usually, one company
will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the
action is a merger of equals, even if it's technically an acquisition. Being bought out often carries
negative connotations, therefore, by describing the deal as a merger, deal makers and top managers
try to make the takeover more palatable.
A purchase deal will also be called a merger when both CEOs agree that joining together is
in the best interest of both of their companies. But when the deal is unfriendly - that is, when the
target company does not want to be purchased - it is always regarded as an acquisition.
Whether a purchase is considered a merger or an acquisition really depends on whether the

purchase is friendly or hostile and how it is announced. In other words, the real difference lies in how
the purchase is communicated to and received by the target company's board of directors, employees
and shareholders.
Regardless of their category or structure, all mergers and acquisitions have one common goal:
they are all meant to create synergy that makes the value of the combined companies greater than the
sum of the two parts. The success of a merger or acquisition depends on whether this synergy is
achieved.
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MAJOR M&A: Top 10 M&A deals worldwide by value (in mil. USD) from 2000 to 2010
Transaction value
Rank Year Purchaser Purchased
(in mil. USD)
Fusion: America Online Inc.
1 2000 Time Warner 164,747
(AOL)
2 2000 Glaxo Wellcome Plc. SmithKline Beecham Plc. 75,961
Shell Transport & Trading
3 2004 Royal Dutch Petroleum Co. 74,559
Co
4 2006 AT&T Inc. BellSouth Corporation 72,671
AT&T Broadband & Internet
5 2001 Comcast Corporation 72,041
Svcs
6 2009 Pfizer Inc. Wyeth 68,000
Spin-off: Nortel Networks
7 2000 59,974
Corporation
8 2002 Pfizer Inc. Pharmacia Corporation 59,515
9 2004 JP Morgan Chase & Co Bank One Corp 58,761
Anheuser-Busch Companies,
10 2008 Inbev Inc. 52,000
Inc
Mergers and Acquisitions: Break Ups

As mergers capture the imagination of many investors and companies, the idea of getting
smaller might seem counterintuitive. But corporate break-ups, or de-mergers, can be very attractive
options for companies and their shareholders.
MERITS
The rationale behind a spinoff, tracking stock or carve-out is that "the parts are greater than
the whole." These corporate restructuring techniques, which involve the separation of a business unit
or subsidiary from the parent, can help a company raise additional equity funds. A break-up can also
boost a company's valuation by providing powerful incentives to the people who work in the
separating unit, and help the parent's management to focus on core operations.
Most importantly, shareholders get better information about the business unit because it
issues separate financial statements. This is particularly useful when a company's traditional line of
business differs from the separated business unit. With separate financial disclosure, investors are
better equipped to gauge the value of the parent corporation. The parent company might attract more
investors and, ultimately, more capital.
Also, separating a subsidiary from its parent can reduce internal competition for corporate
funds. For investors, that's great news: it curbs the kind of negative internal wrangling that can
compromise the unity and productivity of a company. For employees of the new separate entity, there
is a publicly traded stock to motivate and reward them. Stock options in the parent often provide little
incentive to subsidiary managers, especially because their efforts are buried in the firm's overall
performance.
Mergers and Acquisitions: Why They Can Fail

It's no secret that plenty of mergers don't work. Those who advocate mergers will argue that
the merger will cut costs or boost revenues by more than enough to justify the price premium. It can
sound so simple: just combine computer systems, merge a few departments, use sheer size to force
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down the price of supplies and the merged giant should be more profitable than its parts. In theory,
1+1 = 3 sounds great, but in practice, things can go away.
Historical trends show that roughly two thirds of big mergers will disappoint on their own
terms, which means they will lose value on the stock market. The motivations that drive mergers can
be flawed and efficiencies from economies of scale may prove elusive. In many cases, the problems
associated with trying to make merged companies work are all too concrete.
Conclusion
One size doesn't fit all. Many companies find that the best way to get ahead is to expand
ownership boundaries through mergers and acquisitions. For others, separating the public ownership
of a subsidiary or business segment offers more advantages. At least in theory, mergers create
synergies and economies of scale, expanding operations and cutting costs. Investors can take comfort
in the idea that a merger will deliver enhanced market power. the By contrast, de-merged companies
often enjoy improved operating performance thanks to redesigned management incentives. Additional
capital can fund growth organically or through acquisition. Meanwhile, investors benefit from the
improved information flow from de-merged companies. M&A comes in all shapes and sizes, and
investors need to consider the complex issues involved in M&A. The most beneficial form of equity
structure involves a complete analysis of the costs and benefits associated with deals.
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MERGERS AND ACQUISITION IN INDIA IN THE EMERGING GLOBAL BUSINESS
SCENARIO
V.O.Kavitha, Research Scholar, DOMS, Jawaharlal Institute of Technology, Coimbatore.
The increasing economic power of emerging economies has led to a dramatic expansion in Indian
markets. Merger and acquisitions (M&As) have become in indispensable part of Indian corporate
environment. Business efficiency warrants that companies and organisations must be merged with or
acquired by others for better performance and enhanced profit margins. In India, the concept of
mergers and acquisitions was initiated by the government bodies. Some well known financial
organizations also took the necessary initiatives to restructure the corporate sector of India by adopting
the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole
lot of challenges both in the domestic and international spheres. The increased competition in the
global market has prompted the Indian companies to go for mergers and acquisitions as an important
strategic choice. The trends of mergers and acquisitions in India have changed over the years. The
immediate effects of the mergers and acquisitions have also been diverse across the various sectors of
the Indian economy.
Merger & Acquisition
A merger is a combination of two or more businesses into one business. The term
amalgamation is used synonymously for merger. An acquisition may be defined as an act of
acquiring effective control by one company over assets or management of another company without
any combination of companies. Thus, in an acquisition two or more companies may remain
independent, separate legal entities, but there may be a change in control of the companies.
Types of Mergers:
1)Horizontal mergers: The consolidation of firms that are direct rivals--i.e. firms that sell substitutable
products or services within the same geographic market.
2)Vertical Mergers: The consolidation of firms that have potential or actual buyer-seller relationships.
3)Conglomerate Mergers: Consolidated firms may share marketing and distribution channels and
perhaps production processes; or they may be wholly unrelated.
4)Congeneric mergers occur where two merging firms are in the same general industry, but they have
no mutual buyer/customer or supplier relationship, such as a merger between a bank and a leasing
company. Example: Prudential's acquisition of Bache & Company.
STRATEGIES OF MERGERS AND ACQUISITION

A solid strategic planning process delivers valid planning content, applies relevant
methodologies, integrates the individual planning steps and tracks implementation. Drawing on our
project experience, we have developed a benchmark process for strategic planning that satisfies all
these requirements
The M&A strategy should:

Provide a framework for the target screening, transaction execution and combination phases
Communicate a compelling strategy to your employees, or they will resist the change
process required for effective combination
Factor your unique people, process and technology considerations into the target screening phase
Use a well-defined structure, but remember each combination is unique.
LAW RELATING TO MERGERS AND ACQUISITION IN INDIA:

Following are the laws that regulate the merger of the company:-
(I) The Companies Act , 1956
Section 390 to 395 of Companies Act, 1956 deal with arrangements, amalgamations, mergers
and the procedure to be followed for getting the arrangement, compromise or the scheme of
amalgamation approved. Though, section 391 deals with the issue of compromise or arrangement
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which is different from the issue of amalgamation as deal with under section 394, as section 394 too
refers to the procedure under section 391 etc., all the section are to be seen together while
understanding the procedure of getting the scheme of amalgamation approved. Again, it is true that
while the procedure to be followed in case of amalgamation of two companies is wider than the
scheme of compromise or arrangement though there exist substantial overlapping.
The procedure to be followed while getting the scheme of amalgamation and the important points, are
as follows:-
(1) Any company, creditors of the company, class of them, members or the class of members can file
an application under section 391 seeking sanction of any scheme of compromise or arrangement.
However, by its very nature it can be understood that the scheme of amalgamation is normally
presented by the company. While filing an application either under section 391 or section 394, the
applicant is supposed to disclose all material particulars in accordance with the provisions of the Act.
(2) Upon satisfying that the scheme is prima facie workable and fair, the Tribunal order for the
meeting of the members, class of members, creditors or the class of creditors. Rather, passing an order
calling for meeting, if the requirements of holding meetings with class of shareholders or the
members, are specifically dealt with in the order calling meeting, then, there wont be any subsequent
litigation. The scope of conduct of meeting with such class of members or the shareholders is wider in
case of amalgamation than where a scheme of compromise or arrangement is sought for under section
391
Intellectual Property Due Diligence In Mergers And Acquisitions

The increased profile, frequency, and value of intellectual property related transactions have
elevated the need for all legal and financial professionals and Intellectual Property (IP) owner to have
thorough understanding of the assessment and the valuation of these assets, and their role in
commercial transaction. A detailed assessment of intellectual property asset is becoming an
increasingly integrated part of commercial transaction. Due diligence is the process of investigating a
partys ownership, right to use, and right to stop others from using the IP rights involved in sale or
merger ---the nature of transaction and the rights being acquired will determine the extent and focus of
the due diligence review. Due Diligence in IP for valuation would help in building strategy, where in:-
(a) If Intellectual Property asset is underplayed the plans for maximization would be discussed.
(b) If the Trademark has been maximized to the point that it has lost its cachet in the market place,
reclaiming may be considered.
(c) If mark is undergoing generalization and is becoming generic, reclaiming the mark from slipping
to generic status would need to be considered.
(d) Certain events can devalue an Intellectual Property Asset, in the same way a fire can suddenly
destroy a piece of real property. These sudden events in respect of IP could be adverse publicity or
personal injury arising from a product. An essential part of the due diligence and valuation process
accounts for the impact of product and company-related events on assets management can use risk
information revealed in the due diligence.
(e) Due diligence could highlight contingent risk which do not always arise from Intellectual Property
law itself but may be significantly affected by product liability and contract law and other non
Intellectual Property realms.
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Therefore Intellectual Property due diligence and valuation can be correlated with the overall
legal due diligence to provide an accurate conclusion regarding the asset present and future value
CONCLUSION:
As cash-rich Indian firms continue to hunt for strategic bargains abroad, industry insiders are
confident that 2011 will continue to see a high volume of Indian M & A activity. According to
Bloombergs M & A Global Outlook survey, companies in the Asia-Pacific region, including India and
China, are expected to be the most active buyers in 2011 as attractive valuations drive deals globally.
While activity is expected in all sectors, as Indian companies seek oil, gas, coal and other minerals to
fuel Indias continued industrial growth, natural resources will undoubtedly continue to be the subject
of a significant portion of deals originating in India
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MUTUAL FUND AND HEDGE FUNDS
R. Priya Rathna, Faculty, R. Divya, K. Kanmani Students,
Vasavi Vidya Trust Group Of Institutions
MUTUAL FUND
Introduction:
A mutual fund is a portfolio, or collection, of individual securities (some combination of
stocks, bonds, or money market instruments) managed according to a specific objective spelled out in
the funds prospectus. A mutual fund allows investors to pool their money, then the funds invests it on
their behalf.
Unlike the individual stocks, whose value fluctuates minute by minute, mutual funds are
priced at the end of the each day the market is open, based on what the securities in the portfolio are
worth.
Mutual Fund Structure
BOARD OF TRUSTEES
ASSET MANAGEMENT COMPANY
SEBI REGULATIONS
UNITHOLDERS (BENEFICIARIES)
Each mutual fund has a Board of Trustees, an Asset Management Company or AMC (the
manager) and unit holders. In India, we also have a promoter or sponsor who takes the initiative of
starting a mutual fund but has no active role after the fund has been launched. The sponsor remains
only as a shareholder of the AMC. As per SEBI regulations, the effective control of the AMC is not
with the sponsor but with the Board of Trustees. A majority of the trustees have to be chosen from
amongst independent persons and the rest are the nominees of the sponsor. The Board of Trustees
functions as the governing body of the mutual fund.
SEBI regulations provide the framework within which mutual funds have to operate.
Maximum limits have been prescribed for management fees and other chargeable expenses, as
detailed a little later. SEBI also regulates many other aspects of their operations and policies.
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Classification of mutual funds
Mutual funds can be classified based on two criteria,

1. Structure
2. Investment objective
HEDGE FUND
Introduction :
Hedge funds are generally privately-owned investment funds, and so are not regulated like
mutual funds whose owners are public corporations. Furthermore, hedge fund managers are
compensated as a percent of the returns they earn. This attracts many investors who are frustrated by
mutual fund fees that are paid regardless of fund performance.
Thanks to this compensation structure, hedge fund managers are driven to achieve above
market returns. Since they get zero no matter how much money they lose, they are also very risk
tolerant. This makes the funds very risky for the investor, who can lose much more than zero.
Hedge fund managers are very good at using sophisticated derivatives, such as futures contracts,
options and puts. Basically, these products all do two things: they use small amounts of money, or
leverage, to promise large amounts of stocks or commodities. Secondly, they all say they will deliver
this stock or commodity at a particular point in time. In that sense, hedge fund managers are trying to
time the market, which some would say is very difficult if not impossible to do.
Taxonomy of Hedge Fund Strategies

Strategy Description
Directional Based upon speculation of market direction in multiple asset classes. Both
Trading model-based systems and subjective judgment are used to make trading decisions
Relative Focus on spread relationships between pricing components of financial assets.
Value Market risk is kept to minimum and many managers use leverage to enhance returns.
Specialist Based around lending to credit sensitive issuers. Funds in this strategy conduct a
Credit high level of due diligence in order to identify relatively inexpensive securities.
Stock Combine long and short positions, primarily in equities, in order to exploit under
Selection and overvalued securities. Market exposure can vary substantially.
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Growth Of Hedge Funds:

HEDGE FUNDS 2008
HEDGE FUND 2009

Reasons For Rapid Growth Of Hedge Fund Industry:
While high net worth individuals remain the main source of capital, hedge funds are becoming
more popular among institutional and retail investors. Funds of funds (hedge funds) and other hedge
fund -linked products are increasingly being marketed to the retail investors in some jurisdictions.
There are a number of factors behind the rising demand for hedge funds. The unprecedented Bull Run
in the US equity markets during the 1990s swelled investment portfolios this lead both fund managers
and investors to become more keenly aware of the need for diversification. Hedge funds are seen as a
natural hedge for controlling downside risk because they employ exotic investments strategies
believed to generate returns that are uncorrelated to asset classes.
Until recently, the bursting of the technology and telecommunications bubbles, the wave of
scandals that hit corporate America and the uncertainties in the US economy have lead to a general
decline in the stock markets worldwide. This in turn provided fresh impetus for hedge funds as
investors searched for absolute returns. The growing demand for hedge fund products has brought
changes on the supply side of the market. The prospect of untold riches has spurred on many former
fund managers and proprietary trades to strike out on their own and set up new hedge funds. With
hedge funds entering the main stream and becoming respectable, an increasing number of banks,
insurance companies, pension funds, are investing in them.
Hedge Funds Impact On U.S. Economy:

If hedge funds can dramatically increase the cost of oil, they can have a huge impact on the
economy. Oil prices are a component of inflation, which cuts into consumers ability to purchase.
222
Since consumer products are 70% of the U.S. economy, a restriction in consumers buying power will
lead to a slowdown in the economys growth.
Hedge Funds Impact on Stock Market

Hedge funds have made the stock market much more risky. Since they are unregulated, they
can make investments without scrutiny by the SEC. Unlike mutual funds, they dont have to report
quarterly on their holdings. This means no one really knows what they are invested in.
Their use of derivatives means that, with little actual money invested, they have the capability
to create large swings in the market. For example, many experts have said that the run-up in oil prices
in July of 2006 was caused, in part, by hedge funds. Although no one really knows how much of the
market is controlled by hedge funds, Credit Suisse estimates it could be half of the New York and
London Stock Exchanges. (Source: International Herald Tribune, "U.S. Regulators Grow Alarmed
Over Hedge Fund Hotels, January 1, 2007)
Now, the differences:

Hedge funds are managed much more aggressively than their mutual fund counterparts. They
are able to take speculative positions in derivative securities such as options and have the ability
to short sell stocks. This will typically increase the leverage - and thus the risk - of the fund. This also
means that it's possible for hedge funds to make money when the market is falling. Mutual funds, on
the other hand, are not permitted to take these highly leveraged positions and are typically safer as a
result.
Another key difference between these two types of funds is their availability. Hedge funds are
only available to a specific group of sophisticated investors with high net worth. The U.S.
government deems them as accredited investors and the criteria for becoming one are lengthy and
restrictive. This isn't the case for mutual funds, which are very easy to purchase with minimal
amounts of money.
CONCLUSION
1. A mutual fund is a collective investment system that includes shares from bonds, stocks, securities
and other short-term money market investments.
2. A hedge fund is an investment fund that is available to partial investors, and it allows for various
trading activities and other investments.
3. Everybody can invest in mutual funds.
4. Hedge fund uses the whole market, in order to maximize the investment potential.
223
NON PERFORMING ASSETS PERTAINING TO HOUSING
Mrs.P.Vijaya Lakhsmi - Assistant Professor,
R.V.S. College of Engineering and Technology, Dindigul
INTRODUCTION
The constitution of India recognizes the right to live and have a livelihood as a fundamental
right. This includes the right to housing policy. Housing demand is a universal problem, being one of
the prime necessities of life. Housing demand still needs to be fulfilled. This is because of the
shortage of funds and inadequacy of financial institutions, coupled with as increase in cost.
STRUCTURE OF THE HOUSING FINANCE INDUSTRY:

Traditionally housing finance was dominated by a handful of private sector institutions. These
housing finance companies commended 70% market share in FY 1999, which has subsequently fallen
to 50% in FY 2004 as a direct result of policy changes that permitted the entry of this banks into this
industry. Banks Now control 40% of this market and continue to show Explosive growth of 39.33%
shown by commercial banks .
PROBLEMS AND ISSUES WITH THE HOUSING FINANCE INDUSTRY IN INDIA:

Variation in standards
The housing sector is unrepressed varying standards and practices among the lending
community, be it in origination and documentation or monitoring and supervision.
Aggressive approach may lead to defaults

Growing competition coupled with reduction in risk weights on housing loans has led the
lending institutions to adopt aggressive practices.
Security deficits due to norms

Many primary lending institutions are making terms and conditions of sanction flexible and
liberal, thus enabling the borrowers to avail the loans even more than the value of security for long
tenure of 20 to 25 years. The large quantum of institutional finance in the property transaction may
lead to the problem of security deficit.
Due diligence issues

Increasingly, there have been instances of dilution in due diligence on the part of lenders.
Sometimes, loans are sanctioned without strictly complying with laid down rules, system and
procedures.
Lack of uniformity of norms amongst industry players

The norms which are followed by the banks are not uniform and they are flexible to major
expert.
HOUSING FINANCE SERVICES

Housing finance has not only become popular but the procedure for obtaining a loan has
become so simplified that housing loans are easily available. This may be attributed to the change in
the housing policy of both the central and staffs governments. A redeeming feature of Indian housing
finance is the recent entry of commercial banks in a big way.
NON PERFOMISNG ASSETS

The banking sector plays larger role in channel sing money from one end to other end. It
helps almost every person in utilizing the money at their best. The banking sector accepts the deposits
of the people and provides fruitful return to people on the invested money. But for providing the
better returns plus principal amounts to the clients, it becomes important for the banks to earn. The
224
main source of income for banks are the interest that they earn on the loans that have been disbursed
to general person, businessman or any industry for its development.
DEFINITION OF NON PERFORMING ASSETS
RBI Notifications
Non performing Asset (referred to in these directions as NPA) means: with effects from
31, 2003, means;
a. An asset, in respect of which, interest has remained part due for six months.
b. A term loan inclusive of unpaid interest, when the installment is overdue for a period of six
months or more.
REASONS FOR GROWTH OF NPAs

The quantum of NPA has been calculated and put at different figures mainly due to absence of
proper statistics and the method on the basis adopted for calculating the percentage of NPA in relation
to either the total assets of the bank or the amount of loan post folio or on the basis of the number of
the accounts or the sing of the out standing advances.
Recently little attention was paid to the real reasons as to why and how non performing assets
have appeared in the books of the banks and also the books of financial institutions. For a large
numbers of years, the banks have been taking credit in its books, on basis of accrued interest income,
even for the amount of periodic interest that was not actually paid by the borrower. This was done by
raising debit in suspense account and crediting amount equal to the periodic interest in the loan
account of the borrower
BANKS COULD NOT PREVENT LOAN DEFAULTS

This is mainly due to procedural lapse and in adequate control mechanism and loosening of
bank supervision. In order to over come this problem each bank should evolve structured letter of
sanction, a detailed loan agreement and elaborate security documents including all the supporting
documents.
Following data is relating to NPA declared by banks during the financial year 2009-2010.
Amount
Source Punjab
(Rs. In crores)
National Bank 853
Dena Bank 185
Bank of Baroda 515
Canada Bank 884
Daimio Jag ran
India Bank 388
dated 29th Nov 2010
Syndicate Bank 419
UCO Bank 371
State Bank of India 1990
Vijay a Bank 479
Alahabad Bank 750
Union Bank of India 513
Bank 7347
Impact on Indian Economy: After NPA issue came into picture the share price of those
concerns or companies fall on 25th Nov 2010 which highlights in this issue.
225
The data given below is as per data published in dainik jagaran on 26 Nov10.
Bank / Company % Decrease in Price
Pubjab National Bank 6.38
Canara Bank 5.85
Axis Bank 3.35
LIC Housing Finance 0.98
DB Reality 9.99
JP 5.19
DLF 4.13
India Bulls 5.22
Unitech 6.04
RECOMMENDATIONS TO REDUCE NPA

In order to reduce NPA in housing finance bank the following measles can be adopted to
help the market to perform more efficiently.
Adoption of uniform practice: the hosing finance inductee relating to malteds like appraisal
and documentation, Repayment of housing loans, Conversation of tried sale loans into loading rate
loans.
Greater transparency: dealings with the bellowers to enable them to Exercise informed choice
about product and leading institutions promotion securitization.
The securitization act has been en acted for dealing with and souring problem of NPAS where
these securities are purchased by SPV established in form of a trust, set up the non banking
finance company it self and these after securable are sold to metal tend as the investor by issue of
pass through certificates (PTC). Autonomy to bumps: we propose to the bank, through RBI, to
under take lending a remunerative avenue.
CONCLUSION
Non-Performing Assets in banks are serious problem where due steps has to be taken to
reduce. It is highly improbable for any bank to have zero percentage NPA. But at least Stapes
have to be taken to reduce the NPA in banks particularly in housing finance to maintain and
Complete with international Standards. To impure the efficiency and Profitability of banks the NPA
has to be payment Scheduled.
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FOREIGN DIRECT INVESTMENT IN MULTI-BRAND RETAILING
Mr.S.Chelladurai, Assistant Professor, MBA Department,
Nehru Institute of Engineering & Technology, Coimbatore 641 105
Mrs.K.Sarguna, Assistant Professor, BBM Department, Nehru Arts and Science College
Coimbatore 641 105
INTRODUCTION
Marketing of two or more similar and competing products by the same firm under different
and unrelated brands is called Multi brand retailing. The retail industry is mainly divided into
Organized and Unorganized retailing. Organized retailing refers to trading activities undertaken by
licensed retailers, who are registered for sales tax, income tax, etc. Unorganized retailing, on the other
hand, refers to the traditional formats of low-cost retailing, i.e. kirana shops. The Economic Survey
2010-11 has favoured phased opening of foreign direct investment (FDI) in multi-brand retail to
address the concerns of consumers, farmers and declining FDI inflows. Permitting FDI in multi-brand
retail in a phased manner beginning with metros and incentivizing the existing retail shops to
modernise could help address the concerns of farmers and consumers,'' the survey says. At present
India allows 100 per cent FDI in cash and carry wholesale trading, while it is prohibited in multi-
brand retail. Up to 51 per cent FDI has been allowed in single-brand retail since 2006.
The survey says FDI in retail may also help bring in technical know-how to set up efficient
supply chains which could act as models of development. According to it, during April 2006 to
March 2010, India witnessed FDI inflows worth $194.69 million in the retail sector, accounting for
0.21 per cent of total FDI inflows into the country during the period. A total of 94 proposals have
been received till May, 2010, of which 57 were approved,'' the survey said. Global retail giants such
as Walmart, Carrefour and Tesco have been pitching for opening FDI in multi-brand retail so that
they can tap the immense potential this country offers. Globally, FDI in retail is permitted in
countries such as Brazil, Argentina, Singapore, Indonesia, China and Thailand without any limit on
equity participation, while Malaysia has equity caps. In India, retail trade is a State subject. There is
no national framework for its regulation and development and States have their own regulations.
Reasons behind the Reforms

Trade is an important segment in Indias Gross Domestic Product (GDP). As per the National
Accounts, released by the Central Statistical Organization (CSO), GDP from trade (inclusive
of wholesale and retail in organized and unorganized sector), at current prices, increased from
Rs 4,33,963 crore in 2004-05 to Rs 7,91,470 crore, at an average annual rate of 16.2 per cent.
The share of trade in GDP, however, remained fairly stable at little over 15 per cent. in last
four years1. The share of the private organized sector in total GDP from trade was 23.2 per
cent in 2008-09 and it grew at 15.0% during the year. The share of the retail trade in GDP
remained stable at 8.1 per cent during this period.
The Inter-Ministerial Group (IMG) on Inflation headed by Chief Economic Advisor Kaushik
Basu pitched for opening up multi-brand retail to foreign direct investment (FDI) along with
changes in agriculture marketing laws to help contain the inflationary pressures on the
economy.
Committee of Secretaries (CoS) had proposed allowing up to 51% FDI in the politically
sensitive multi-brand retail segment with a rider that a minimum of USD 100 million
investment should be made
The Planning Commission has given its green signal to foreign direct investment (FDI) in
multi-brand retail sector.
The multi-brand retail industry is enormous with Indian retails equalling $400 billion.
Walmart alone has accounted for sales of $450 billion this year.
227
The business logic behind FDI
Thomas Varghese, CEO of Aditya Birla Retail says, significant local knowledge is necessary
to do business in India, irrespective of sectors. India, given its diversity and resultant multiple tastes,
warrants flexible business models that cater to a multitude of needs and wants. So, foreign players
may need this local knowledge in abundance, especially to penetrate Indian multi-brand retail
markets. On the other hand, there are challenges in merchandising, supply chain and technology that
Indian players face, when it comes to multi-brand retailing.
How margin-free markets can take a beating

One of the widely perceived and publicized benefits that come with allowing FDI in multi-
brand retail is that it would arrest the sky-rocketing inflation. The past experiences show that once the
organized players come in, prices have not come down. It may not be the so-called kirana-stores that
would be negatively affected by the advent of these big players. It would also be the stores which
employ 4-5 people, the so-called margin-free markets that would be affected.
Currently, these stores cater to a growing middle class; the stores may not be looking
flamboyant or air-conditioned. But they cater to a rapidly surging middle-class whose members are
being eyed by the big players. The kirana stores always have their place in the map; all because they
have a space. They dont survive because of the scale but for their location. The so-called medium-
type stores survive because of scale and they can hardly match the scale and price as offered by the
biggies like global retail giants Walmart, Tesco and Carrefour etc.,
LIMITATIONS OF THE PRESENT SETUP

By sourcing commodities at a higher price in the global market, they would only add further to the
existing inflationary pressures
Table 1:
Consumer Pharma / Cookware /
Channel mark-up Garments
Goods OTC Kitchenware
In India 22% highest 30% branded 34% total 30% total
100% 100%
In West 40% average 100% minimum
minimum minimum
Source: Shekar Swamy, Hindu Business Line, June 16 and 17, 2011
India is not an economy, which is suited to the kind of outsourcing and creation of supply
chain, which can feed large retail chains. The single brand retail, which was allowed with big deal, has
not taken off. It has merely created a window for import of finished products from richer countries.
FDI in retailing would lead to unfair competition and result in large-scale exit of domestic retailers,
leading to displacement of persons employed in the retail sector. Global retailers such as Wal-Mart
would conspire and exercise monopolistic power to raise prices and monopolistic power to reduce the
prices received by the suppliers causing asymmetrical growth in cities leading to discontent and social
tension elsewhere
A number of concerns have been expressed with regard to opening of the retail sector for FDI.
1. The first is that the retail sector in India is the second largest employer after agriculture. As
per the latest NSSO 64th Round, in 2007-08 retail trade employed 7.2%6 of total workers and
provided job opportunities to 33.1 million persons". The share of employment in the broad sector of
trade, hotels and restaurants in 2007-08 was significantly higher compared to its share in 1993-94 for
both males and females, in rural, as well as urban areas". More than 2/ 3rd of the total employment, in
the broad category of trade, hotels and restaurants, is in the retail sector.
2. A second concern is that it would lead to unfair competition and ultimately result in large-
scale exit of domestic retailers, especially the small family managed outlets, leading to large scale
228
displacement of persons employed in the retail sector. Further, as the manufacturing sector has not
been growing fast enough, the persons displaced from the retail sector would not be absorbed there.
3. A third argument is that the Indian retail sector, particularly organized retail, is still under-
developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is
allowed to grow and consolidate first, before opening this sector to foreign investors.
GIST OF RECOMMENDATIONS OF VARIOUS STUDIES:

A number of views have been expressed regarding the subject of FDI in the retail trade sector.
Various issues have also been raised on the possible approach to opening the retail trade sector for
FDI. Some of the views expressed/issues raised are summarized ahead.
'FDI IN RETAIL- A POLICY PERSPECTIVE', PREPARED BY FICCI AND ICICI

PROPERTY SERVICES IN FEBRUARY, 2005
i. Competition within the host country sector is a critical driver of improvements in sector
performance as a result of FDI.
ii. However, FDI's potential for impact can be greater because of the combination of scale, capital, and
global capabilities which allow MNCs to close existing large productivity gaps more aggressively.
iii. FDI can be a powerful catalyst to spur competition in industries characterized by low competition
and poor productivity. Examples include the cases of consumer electronics in Brazil and India, food
retail in Mexico, and auto in China, India, and Brazil.
iv. Competition is also key to diffusing FDI-introduced innovation across an industry. In Brazilian
food retail, high competitive intensity caused by informal players forced all modern retailers to rapidly
increase productivity; in Mexican and Brazilian auto cases, increasing competition from imports
induced foreign players themselves to increase their productivity.
v. Increasingly, foreign direct investment is integrating developing countries into the global economy,
creating large economic benefits to both the global economy and to the developing countries
themselves. Industry restructuring enables global growth as companies reduce production costs and
create new markets. For the large developing countries, integrating into the global economy through
foreign direct investments improves standards of living by improving productivity and creating output
growth. The biggest beneficiaries from this transition are consumers - both global consumers that reap
the benefits from global industry restructuring, and consumers in the host countries that see their
purchasing power and standards of living improve.
vi. FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario
of low competition and poor productivity. It can bring about:
Supply Chain Improvement
Investment in Technology
Manpower and Skill development
Tourism Development
Greater Sourcing From India
Upgradation in Agriculture
Efficient Small and Medium Scale Industries
Growth in market size
Greater Productivity
Benefits to government: through greater GDP, tax income and employment generation
229
VII. The report inter alia made the following recommendations:
Permit FDI in retail
Remove Bottlenecks in the supply chain
Relax SSI Reservation
Remove distribution constraints
Organize market for real estate
Increase land supply
CONCLUSION
It is ironic that economic surveys prepared by the Ministry of Finance and released a week
before the presentation of the annual budget float fanciful themes. These are so to say test balloons.
Unfortunately, there is no correlation between the survey and the budget even on fundamental issues
like fiscal correction.
FDI in retail India is a lost cause. The lure of FDI in retail is based on the Wal-Mart story in
China. That was when China had become the hub for exporting cheap goods into the U.S. Many U.S.
corporations exploited the opportunity. That story has outlived its purpose. The yuan debate has
undone it. The U.S. cannot afford to live with a hollowed manufacturing base; nor can China live with
an exports-only strategy and has to turn inward. The moral is that there is no global model of retail
which can be replicated elsewhere.
Arguments in favor of FDI in retail are fallacious. India is not an economy which is suited to
the kind of outsourcing and creation of supply chain which can feed large retail chains. The single
brand retail which was allowed with fanfare has not taken off. It has merely created a window for
import of finished products from richer countries. Companies like Prada, Gucci and other superior
brands (perfumes!) which are beyond the reach of millions of Indians. Indian participation takes care
of back-office and establishment expenses and there is no linkage with the Indian raw materials or
processing. It has created an "island" decorating huge malls catering only to the noveau rich or those
in the Forbes list.
It is inconceivable that in a few years Wal-Marts and their ilk will be able to build linkages
with Indian manufacturers in an equitable manner. It is idle to imagine that they will support small
farmers or construct cold storages for them. These are slogans of PR companies to buttress their case
and lack credibility.
Lastly, Indian retail supports more than 30 million people. These have taken to retail as the
government has failed to create employment opportunities for them. It is disguised unemployment.
These millions will rise against FDI in retail and create situations not unlike that which happened in
Egypt, Bahrain, etc. Dr. Manmohan Singh opposed FDI in retail when he was the leader of opposition
in the Rajya Sabha. There are no material changes in the ground conditions and the situation, if
anything, has turned worse. It is sad that the FDI in retail story has been popping up again and again
during the last eight years.
230
IMPACT OF GLOBAL FINANCIAL CRISIS ON SHARE MARKET IN INDIA
Dr.S.Gandhimathi, Assistant Professor of Economics,
Avinashilingam Deemed University for Women, Coimbatore
The world economy witnessed financial crisis since mid 2008. This crisis affected the
functioning of the global financial markets, stock markets and the economy. The problems that
surfaced in the US sub-prime market in August 2007 reached their peak during September 2008.
Credit markets virtually froze with financial institutions almost unwilling to lend to each other. The
loss of confidence set off a chain of deleveraging, declining asset and commodity prices, falling
incomes, shrinking demand and trade and capital flows, and rising unemployment in the advanced
economies in the early stages. The turmoil in the financial sector of the advanced countries affected
the financial sector of India, especially after the Lehman Brothers bankruptcy in mid- September
2008. The contagion spread to these economies through financial, trade and confidence channels,
despite their relatively sound fundamentals.
The Indian equity market has witnessed a significant improvement since the reform process
began in the early 1990s. The equity market in India is now comparable with international markets.
The changes in regulatory and governance framework have increased investors confidence. There has
been a visible improvement in trading and settlement infrastructure, risk management systems and
levels of transparency. These improvements have reduced transaction costs and led to improvements
in depth and liquidity. Before the onset of the sub-prime crisis in the US in August 2007, capital
markets across advanced and emerging market economies had witnessed a strong rally. The mounting
losses of large financial institutions on account of the subprime crisis, however, intercepted the rally
and capital markets started sliding in most of the advanced economies. Confidence in many large
financial institutions was severely shattered by the sub-prime mortgage losses and the share prices of
these institutions, especially investment banks, crumbled drastically from the later part of 2007.
Subsequently, capital markets of emerging market economies also started decelerating, primarily on
account of large pullouts by foreign institutional investors. Although Indian banks/ financial
institutions had no significant exposure to the US sub-prime 211 market, Indian capital markets
caught the global downswings in January 2008, largely driven by selling pressures by FIIs. In the
present study, an attempt is made to analyse the trend in the share market in India and to analyse the
impact of global financial crisis on share market.
Results and Discussion

The first impact of the global crisis on India was felt in the stock market in January 2008. This
came through the reversal of inflows from foreign institutional investors (FIIs) into the country. India
had received about US$ 17.7 billion as net equity investment inflows from FIIs during 2007. This
turned into a net disinvestment of US$ 13.3 billion during the period from January 2008 to February
2009. This was the direct result of the massive de-leveraging of US banks after the financial
meltdown. The FIIs withdrew funds from all over the emerging markets for meeting the liquidity
requirements of their principals in the US.
The sudden withdrawal of FIIs from the Indian stock market brought about a crash in the
market in January 2008. The benchmark stock price index, the BSE Sensex, plummeted from 20,873
on 8 January to 9093 on 28 November 2008, a 56 per cent fall over a period of 11 months. The fall in
Wall Street started two months before in November 2007, but the intensity of the market crash taking
place after a lag in Dalal Street (Indias stock exchange) had been much larger. The severity of the
current crisis can be gauged by the steep decline in the equity markets of advanced economies. The
bursting of the sub-prime housing bubble caused Wall Street to lose a staggering US$8 trillion in
market capitalization in a very short time (Brunnermier 2009). Interestingly, the loss in market
capitalization and crash in equity prices has been significantly higher in periphery economies as
compared to US markets (Table 1). According to Eichengreen and ORourke (2009) global stock
markets fell faster during the current crisis than in 1929.
231
Table 1: Stock Market Crash and Exchange Rate Changes of Selected Countries
Countries Stock Market Changes Rate Changes
JuneDecember 2008 (%) JuneDecember 2008 vis--vis US$ (%)
PRC -48 1
Hong Kong, China -40 1
India -41 -13
Republic of Korea -36 -20
Argentina -51 -13
Brazil -49 -31
Mexico -29 -26
Japan -36 18
Eurozone -37 -11
US (S&P 500) 36 -
Source: Loser (2009).
The global financial crisis had significant impact on the share price index. The table-2 shows the
average annual share price index before and after the global financial crisis
Table 2 : Annual averages of share price indices and market Capitalization

Year BSE Sensex BSE 100 Market capitalization
(Base : 1978-79=100) (Base: 1983-84 = 100) BSE (Rs.Crore)
1980-81 138.87 - -
1981-82 207.91 - -
1982-83 221.51 - 9769.00
1983-84 238.33 100.00 10219.00
1984-85 266.19 116.01 20378.00
1985-86 492.23 216.99 21636.00
1986-87 567.39 256.85 25937.00
1987-88 454.46 232.23 45519.00
1988-89 613.66 307.84 54560.00
1989-90 729.49 384.84 65206.00
1990-91 1049.53 536.99 90836.00
1991-92 1879.51 916.63 323363.00
1992-93 2895.67 1321.04 188146.00
1993-94 2898.69 1373.00 368071.00
1994-95 3974.91 1899.53 435481.00
1995-96 3288.68 1525.93 526476.00
1996-97 3469.24 1554.64 463915.00
1997-98 3812.86 1650.07 560325.00
1998-99 3294.78 1457.07 545361.00
1999-00 4658.63 2278.16 912842.00
2000-01 4269.69 2170.51 571553.00
2001-02 3331.95 1587.70 612224.00
2002-03 3206.29 1597.32 572198.00
2003-04 4492.19 2315.70 1201207.00
2004-05 5740.99 3083.25 1698428.00
2005-06 8278.55 4380.71 3022191.00
2006-07 12277.33 6242.73 3545041.00
2007-08 16568.89 8691.47 5138015.00
2008-09 12365.55 6434.69 3086076.00
2009-10 15585.21 8187.25 6164157.00
Source: Handbook of Indian Economy
232
The table -2 shows that the sensex had declined from 16568.89 in 2007-2008 to 12365.55 in 2008-
2009. The market capitalisation had also shown a very sharp decline from Rs. 5138015.00 crore in
2007-2008 to Rs. 3086076.00 crore2008-2009.
CONCLUSION
To conclude, although Indian banks/ financial institutions had no significant exposure to the
US sub-prime 211 market, Indian capital markets caught the global downswings in January 2008,
largely driven by selling pressures by FIIs. The severity of the current crisis can be gauged by the
steep decline in the equity markets of advanced economies. The bursting of the sub-prime housing
bubble caused Wall Street to lose a staggering US$8 trillion in market capitalization in a very short
time (Brunnermier 2009). Interestingly, the loss in market capitalization and crash in equity prices has
been significantly higher in periphery economies as compared to US markets. According to
Eichengreen and ORourke (2009) global stock markets fell faster during the current crisis than in
1929.
233
FOREIGN CAPITAL INFLOWS TO REAL ESTATE INDUSTRY IN INDIA DURING
LIBERALISATION ERA
Dr. S.Jayakkumar, Associate professor of commerce, Guru Nanak College, Chennai- 600 042.
INTRODUCTION
Ever since the economic liberalization process began in India, the economic sectors enter into
competition among themselves to grab a major share of the economic development and growth of the
country. In this process construction and Real Estate industry becomes a leader among the competitive
sectors in attracting the Foreign capital in India. . The industry has adopted a host of offensive strategy
and the Government of India gave a helping hand for effecting a revolutionary changes in the
construction of housing, hotels, hospitals, resorts and recreation centers etc.,
To accelerate the economic liberalization process and to boost employment, infrastructure and
economic growth, Government of India has allowed Foreign Direct Investment (FDI) with a
minimum of $ 10 million in 100 per cent FDI projects and $ 5 million in joint venture projects under
automatic route without going through the Foreign Investment Promotion Board (FIPB) in
construction of housing, commercial premises, hotels, resorts, hospitals, educational institutions,
recreational facilities, city and regional level infrastructure etc., over 50,000 square meters by
obstructing the sale of undeveloped land by foreign investors to prevent speculation in real estate.
The construction industry in India is worth over US$ 55 billion (37 billion) and accounts for
more than 20% of GDP. In 2005, FDI in real estate was a mere Rs 171 crores which has soared to Rs
13,586 crores in 2009-10. Foreign direct investment in Indias booming real estate and housing
market jumped 80 times during this period. India has been witnessing more money being attracted
into housing sector from abroad despite the recent downturn in 2010 11 (up to September) Rs 2,957
crores in FDIs were attracted into the sector. The cumulative Foreign Direct Investment worth of Rs
40,205 crore has come India in the housing sector during the above period ( 2005 to 2010).
FOREIGN CAPITAL INFLOWS IN INDIA

Investment is usually understood as financial contribution to the equity capital of an
enterprise or purchase of shares in the enterprise. Foreign investment is of two kinds (i) Foreign
Direct Investment (FDI) and (ii) Foreign Portfolio Investment. Foreign capital investment consist of
(a) Equity inflows under FIPB, RBI, Automatic acquisition route, (b) Equity inflows in
unincorporated bodies, (c) Re-invested earnings and (d) other capital investment The following table
No 1 shows clear picture about financial year wise Foreign capital inflows to India.
TABLE No.1 FINANCIAL YEAR WISE FDI INFLOWS TO INDIA

(Amount in US Dollars in million)
Financial Main components of FDI Investmen
year Equity Equity Re- Other Total % of t by FIIs(
inflows inflows in invested capita FDI FDI Foreign
under FIPB, unincorpo earnings l growth institution
RBI, rated over al
Automatic, bodies previous investors
Acquisition year Fund) net.
Route
2000-01 2,339 61 1,350 279 4,029 -- 1,847
2001-02 3,904 191 1,645 390 6,130 (+) 52% 1,505
2002-03 2,574 190 1,833 438 5,035 (-) 18% 377
2003-04 2,197 32 1,460 633 4,322 (-) 14% 10,918
2004-05 3,250 528 1,904 369 6,051 (+) 40% 8,686
2005-06 5,540 435 2,760 226 8,961 (+) 48% 9,926
234
2006-07 15,585 896 5,828 517 22,826 (+) 3,225
146%
2007-08 24,573 2,291 7,679 292 34,835 (+) 53% 20,328
2008-09 27,329 666 6,428 757 35,180 (+) 01% (-) 15,017
2009-10 25,609 1,540 8,080 1,953 37,182 (+) 06% 29,047
2010- 18,350 219 2,166 118 20,853 -- 11,849
11(up to
Feb)
Total 131,250 7,049 41,133 5,972 193,40 -- 82,691
4
SOURCE: RBI Bulletin October 2010 Dt 12.10.2010 (Table No 44- FOREIGN INVESTMENTS
INFLOWS.) and Statistics of Indias Ministry of commerce and Industry.
From Table No.1, it is found that equity capital inflows under FIPB, RBI, Automatic,
Acquisition Route there is a steady increase in all the years from 2005-06 to 2009- 10. The level of
inflow regarding Equity through unincorporated bodies are also increasing from 2005-06 to 2009-10
except 2008-09. The level of increase inflow was also maintained in the case of reinvestment of
earnings and other foreign capital investment. Overall FDI inflows in 200506 was 8,961 million
US Dollars, which is substantially increased to three times 22,826 million US Dollars. In the year
200809 also there is an increase in FDI inflow by 53% of the last year As a result of this, the World
Investment Report stated that India is the second most attractive location for Foreign Direct
Investment. It is also stated that there is a substantial increase in flow of FDI in South Asia and more
particularly to India.
FOREIGN CAPITAL INFLOW DIPS BY 25% in 201011(up to February)
India needs to worry on Foreign Direct Investment (FDI) front. Statistics of Indias Ministry
of Commerce and Industry stated India has received only 18.35 million U S Dollars in the first 11
months from April to February of financial year 2010-11, compared to 25.63 million U S Dollars that
came in the first 11 months of the previous financial year. Although it is a significant dip, the
government has not mentioned the reasons for the fall except for saying that the trend will be
reversed as it has received a few proposals for FDI. It is observed that (a) Acquisition related inflows
in value terms during the 11 months of 2010-11 already exceeded that for the entire year of 2009-10.
(b) FDI inflows through the automatic route which were affected substantially rather than those
through the Foreign Investment Promotion Board/Secretariat for Industrial Assistance (FIPB/SIA)
approval route. (c) The problems in getting the approvals. (d) Voluntary restraint on part of the
foreign investors and (e) Policy making circles has become a subject matter of public comments are
the major reasons for fall in FDI inflows.
IMPACT OF FALL IN FOREIGN CAPITAL INFLOW

RBI in particular is now worried about the fall in FDI inflows in the context of higher level of
current account deficit and dominance of volatile portfolio capital flows. The volatile FDI inflows
which accounted for a substantial proportion of the equity flows have in turn contributed to the
volatility in equity prices and the exchange rate. RBI underlined the sustainability risks posed by the
composition of capital flows and the need for recovery of FDI are expected to have longer term
commitments. Environmentally sensitive sectors like mining, integrated township projects and
construction of ports, construction, real estate, business and financial services are identified as the
sectors responsible for the slow down. The following table No 2 shows clear picture about financial
year wise top TEN Foreign capital investing countries in India. It may be noted that Mauritius is the
most preferred route for directing FDI in to India while Singapore is the second largest
contributor in all the years from 200506 to 2010-11.
235
TABLE No. 2 TOP TEN FDI INVESTNG COUNTRIES
(Amount in Rupees and in crores) April 2005 to May 2009
Countries 2005-06 2006- 2007- 2008- 2009- Cumulative Cum %
07 08 09 10 FDI
MAURITIUS 11,441 28,759 44,483 50,794 12,428 147,905 56 %
SINGAPORE 1,218 2,662 12,319 15,727 1,280 33,206 12.59 %
USA 2,210 3,861 4,377 8,002 852 19,302 10.92%
UK 1,164 8,389 4,690 3,840 306 18,389 7.35%
CYPRUS 310 266 3,385 5,983 1,521 11,465 4.34%
NETHERLANDS 340 2,905 2,780 3,922 540 10,487 4%
JAPAN 925 382 3,336 1,889 1,498 8,030 3%
GERMAN 1,345 540 2,075 2,750 999 7,709 2.92%
UAE 219 1,174 1,039 1,133 366 3,931 1.49%
FRANCE 82 528 583 2,098 29 3,320 1.25%
Total 19,254 49,466 79,067 96,138 19,819 2,63,744 100%
SOURCE: DIPP, Federal Ministry of Commerce and Industry, Government of India.
Table 2 highlights that Mauritius has contributed 56% of the total FDIs inflows in India
followed by Singapore with 12.59% compared to other countries like US which was only 10.52% and
UK 7.35% in all the years from 200506 to 2009-10. According to another statistics of Indias
Ministry of Commerce and Industry, Mauritius continues to be in the first place in FDI in India with
36% of FDI in the financial 2010 11 (up to feb 11) also. Japan comes in third with 8.3%, followed
by the Netherlands and the USA with 6.1% each, and Cyprus with 4.5%. The U.K is a distant eight in
FDI ranking, contributing 2.8% of the FDI inflow in to India during AprilFebraury 201011.
Mauritius continues to be the preferred route for directing FDI in to India mainly because of
the most of the investors want to avail the advantage of double taxation avoidance, agreement
between India and Mauritius. Mauritius based investors need not pay capital gains tax in India is also
a reason for higher contribution of FDI.
FOREIGN CAPITAL IN CONSTRUCTION SECTOR

The construction industry is a major driver of economic growth in any country. Some of the
economies that were built mainly on the construction boom and here are our two neighbours
Singapore and Hong Kong coming are coming to our mind instantly. The construction sector
accounts for upwards of 6 per cent of GDP in any advanced economy. In United Kingdom it
accounts for 8 per cent of the GDP, 16 per cent of Irelands and 11 per cent of Dubais.
Managing Director of C B Richard Ellis, a real estate consultant states India is a huge market for
property funds with its growing economy and rising demand for space. The entry of foreign
investors will increase the housing stock in the country. That is good news for consumers who
will not have to pay higher prices. Confederation of Real Estate Developers Association in India
(CREDAI), highlights that India has the potential to attract huge amount of investment, but already
overseas developers have increasingly started eyeing the Indian property sector aggressively.
The construction industry in India is worth over US$ 55 billion (37 billion) and accounts for
more than 20% of GDP. It is also the largest employer in the country after agriculture, employing
approximately 31 million people. India is the second most populous country in the world with 1.17
billion people and constitutes 16% of the worlds population. There has been significant growth of the
urban population over the past decade. There are 6 metropolitan cities with a total population of over
75 million. The organised real estate business in India is estimated at around 30 billion and is
currently ranked 12th in the world, but is growing at a compounded annual growth rate (CAGR) of
30%. Consistent high economic growth, a shortage of residential and commercial space, a booming
retail industry and strong growth in industrial output have all contributed to record levels of activity
and investment in this thriving sector. The decision by the Government to allow 100% FDI in real
236
estate in 2005 has led to significant additional interest and growth, both in the real estate and
construction sectors. Major international real estate companies are now looking to India to help drive
their business growth.
CURRENT TRENDS IN COOMMERCIAL SPACE UTILISATION

In the year 2008, due to global recession and economic slowdown impacting the IT and
financial services sector, the absorption rates for commercial space declined. During the year 2009
alone 41.6 million Sq. ft of commercial space as added out of which only 19.6 million Sq. ft as
absorbed. The vacancy levels as at the end of the last quarter of FY 2009-10 ranged between 15-25%
(as percent of availability) in major cities across India. Owing to the decline in absorption, the rental
values also came in or correction. In some major cities, commercial property developers have slashed
rentals by as much as 25%.
GUIDELINES FOR FOREIGN CAPITAL INVESTMENT IN REAL ESTATE

a) 100 per cent FDI through automatic route instead of going through Foreign Investment Promotion
Board (FIPB)
(b) Minimum land area requirement in residential sector is reduced from 100 acres to 25 acres (10
hectares).
(c) Miniimum area for commercial development pegged at 50,000 square metres.
(d) Sale of undeveloped plots by foreign investors not allowed.
(e) The investment would further be subject to a minimum capitalization of $ 10 million for 100 per
cent subsidiaries and $ 5 million for joint ventures with Indian partners.
(f) The funds would have to be brought in within 6 months of commencing business.
(g) The original investment cannot be repatriated before a period of 3 years from the date of
completion of minimum capitalization amount.
(h) The investor may be permitted to exit earlier with prior approval of the Government through the
Foreign Investment Promotion Board (FIPB).
(i) The investors cant sell undeveloped plots or areas where roads, water supply, street lighting,
drainage, sewerage and other conveniences.
(j) The investors should obtain the completion certificate from the local bodies and service agencies
concerned before being allowed to dispose of the plot.
(k) The investor may be permitted to exit earlier with prior approval of the Government through the
Foreign Investment Promotion Board (FIPB).
SEBI ISSUES GUIDELINES FOR REAL ESTATE AND MUTUAL FUNDS

The Securities and Exchange Board of India on 26 th June, 2006 approved guidelines for real
estate mutual funds, allowing them to invest directly in real estate properties in India. These funds
would initially be close-ended schemes. Their units would be compulsorily listed on the stock
exchanges and NAVs of the schemes would be declared daily.
Investment norms: Apart from real estate properties in India, the schemes can invest in mortgage
(housing lease) backed securities and equity shares/bonds/debentures of listed and unlisted companies
dealing in properties and undertake property development. The board has also decided to exempt
venture capital funds and foreign venture capital investors from the lock-in period during an IPO only
if they hold shares in that company for a period of at least one year at the time of filing draft
prospectus with the SEBI. This would help to ensure that only those who invest in the company with a
long-term perspective would be allowed to get the benefit of exemption from requirement of lock-in
period. The funds would be required to appoint a custodian who has been granted a certificate of
registration to carry on the business of custodian of securities by the board. This is a welcome
development for the mutual fund industry which enables common investors to participate in the
growth of the real estate sector.
237
INDUSTRY RESPONSE
Associated Chambers of commerce and Industry of India (ASSOCHAM} has welcomed the
Government decision, allowing FDI for construction development to Foreign investors through
automatic route for creation of townships, housing, built up infrastructure and construction
development projects. In a statement, ASSOCHAM President said that with this decision, there will
be creation of more jobs and economic activities will increase substantially which will lead to higher
growth. It will also have multiplier effect on the economy of all types. In fact the Union Government
decision to permit 100 per cent FDI on construction projects has brought tremendous joy and cheers to
real estate industry. It is a step in the right direction and the liberalization of norms will augur well
for the reality sector, especially the dilution of the 100 acres norm to 25 acres, Managing Director of
Hiranandani Construction Pvt Ltd. stated that Another positive point is that Government has
prohibited sale of undeveloped land to avoid speculation in real estate by foreign investors with
relaxation of FDI norms. The Confederation of Indian Industry (CII) felt that increased investment in
the sector would have a cascading impact on the economy, especially core infrastructure industries
such as cement, steel and downstream industries. The President of FICCI, said it would give
tremendous boost to group housing condo minimum, shopping malls and retail business. This is a
very positive decision for the countrys economy as a whole. MD of Chesterton Meghraj property
consultants pointed out that they will definitely see increased interest in the construction sector. The
Government move comes at right time as the Government as well as the private sector are focusing on
improving the countrys creaky infrastructure. FDI in construction will give an impetus to the
manufacturing sector such as cement, steel, electrical and other industries that cater to the
requirements of the infrastructure sector.
FOREIGN CAPITAL INFLOWS TO REAL ESTATE INDUSTRY IN INDIA

According to the Department of Industrial Policy and Promotion India (DIPP), the Indian real
estate and housing sectors received US$ 1.12 billion in foreign direct investment (FDI) During 2010-
11. Further, the industry also witnessed growth in private equity (PE) investments as well. Around 20
deals worth US$ 1.32 billion took place during January-May 2011, as compared to 22 deals worth
US$ 483 million during the same period last year, according to Venture Intelligence, a research
service focused on PE and mergers and acquisitions (M&A).
INDIAN REAL ESTATE: MAJOR DEVELOPMENTS

The real estate sector in India is on a growth path. The development in the real estate market
encompasses growth in both commercial and residential spheres. Further, it has been estimated that
there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12), which
provides a big investment opportunity, according to a report by the Technical Group on Estimation of
Housing Shortage. The popularity of the Indian real estate sector is also highlighted by a report
Emerging trends in Real Estate in Asia Pacific 2011 published by Price Waterhouse Coopers and
Urban Land Institute. The report focuses on various places where developers such as Ansal Properties
and Omaxe are building commercial and residential developments. These places include Jodhpur,
Agra, Punjab, Uttar Pradesh, Haryana, Madhya Pradesh, and Rajasthan among others.
In the present global scenario, India has been considered as the most promising and fast
growing economy in the world. Due to the liberalized rules for Foreign Direct Investment in India,
the real estate has been the attractive investment proposal for both the domestic as well as foreign
investors and which has enhanced the economy of the country. Table 3 shows Foreign Direct
Investment in Indias booming real estate and housing market jumped 80 times between 2005 and
2010.
238
TABLE 3 HOUSING AND REAL ESTATE FDIS AND TOTAL FDI IN INDIA
(2005-2010 up to SEP) Rupees in Crores
YEARS FDI in HOUSING TOTAL FDI % housing, real estate
AND REAL ESTATE FDI to total FDI
200506 171 21,536 .79
200607 2,121 52,697 4.02
200709 8,749 70,960 12.32
200809 12,621 88,094 14.32
200910 13,586 81,730 16.62
201011(up to 2,957 32,756 9.02
September)
Source: RBI Bulletine International Journal of Trade, Economics and Finance, Vol.2, No.1, February,
2011
Table 3 shows that in 2005, FDIs in real estate was a mere Rs 171 crores against total FDI of
Rs 21,536 crores which is .79%. FDI in real estate soared to Rs 13,586 crores against to total FDI of
Rs. 81,730 which is 16.67% in 2009-10. It indicates that FDIs inflows in Real Estate has jumped 80
times between 2005 and 2010.Even during the global recession period the realty sector in India has
received a considerable amount of FDIs
FINDINGS
1. There is a steady increase of equity capital inflows under FIPB, RBI, Automatic, Acquisition
Route, equity through unincorporated bodies and reinvestment of earnings in all the years from 2005-
06 to 2009- 10. In the year 200809 FDI inflow was increased by 53% over the last year, therefore it
was declared by World Investment Report that India is the second most attractive location for Foreign
Direct Investment.
2. During April-February 2011, FDI inflows into India declined by 25% over the previous year, due to
Acquisition related inflows in value terms, obstacles in automatic route, approval problems, voluntary
restraint on part of the foreign investors and public comments on policy making.
3. The construction industry in India is worth over US$ 55 billion (37 billion) and accounts for more
than 20% of GDP.
4. The organised real estate business in India is estimated at around 30 billion and is currently
ranked 12th in the world, but is growing at a compounded annual growth rate (CAGR) of 30%.
5. FDIs inflows in Real Estate has jumped 80 times between 2005 and 2010.Even during the global
recession period the realty sector in India has received a considerable amount of FDIs
6. Mauritius is the most preferred route for directing FDI in to India while Singapore is the second
largest contributor in all the years from 200506 to 2010-11.
SUGGESTIONS FOR ATTRACTING FOREIGN CAPITAL INFLOWS

1. Scrapping of the contentious Press Note 1 of 2005, to encourage JVs and to provide flexibility for
Indian companies to raise overseas capital, and liberalising foreign investments for production,
construction, real estate and development of seeds.
2. Press Note 1. of 2005 Policy should not be used as a tool to override the contractually-agreed terms
in this era of globalisation. With regard to bringing flexibility for companies to raise funds abroad.
3. The government should issue of equity to overseas firms against imported capital goods and
machinery.
4. The route for raising foreign capital must be simplified and easier.
5. NOC requirements from Indian partner must be abolished.
6. The companies must be allowed to transform convertible instruments (like debentures, partly paid-
up shares, preferential shares, etc) into equity in accordance with the guidelines of the Foreign
Exchange Management Act and the Securities and Exchange Board of India.
239
CONCLUSION
In India, the real estate sector is the second largest industry after agriculture and it is asserted
to be the most promising sector even today. The real estate market in India mostly continues to remain
unorganized, fairly fragmented, mostly characterized by small players with local presence. Indian real
estate has huge potential demand in almost every sector especially commercial, residential, retail, and
industrial, hospitality, healthcare etc. India has witnessed a steady growth in the economy with the
FDIs inflows. The market price of investment-grade real estate properties in India soared from USD
69.4 billion in December 31, 2006 to USD 108.8 billion by March 31, 2011. This is 8.2% of total
GDP for the year 2009. Indian Real estate has been on rise from last few years. The total amount of
FDI inflow has been continuously increasing and along with it the percentage of FDI in real estate
sector. RBI Bulletin shows during 2007-2009 the FDIs inflows has almost doubled i.e. from Rs
2,83,284 crores to Rs 4,23,053 crores. This shows that India has been considered as the most attractive
investment countries in Asia.
Since 2005, various real estate projects have been given a green signal by RBIs. But certain
factors like acquisition related inflows in value, automatic route clearances, Investment Promotion
Board/Secretariat for Industrial Assistance (FIPB/SIA) approval route, policy making circles, public
comments, voluntary restraint on part of the foreign investors are the major causes for fall in FDI
inflows in 201011. The economic conditions of the developing economies in the world are putting
pressures on the recovery of FDIs flows.
240
AN OVERVIEW OF HEDGE FUND
Dr.R.Geethalakshmi & Mr.C.Yuvaraj, Assistant Professor,
Coimbatore Institute of Engineering and Technology, Coimbatore
Introduction
There is no exact definition to the term Hedge Fund; it is perhaps undefined in any securities
laws. There is neither an industry wide definition nor a universal meaning for Hedge Fund. Hedge
funds, including fund of funds, are unregistered private investment partnerships, funds or pools that may
invest and trade in many different markets, strategies and instruments (including securities, non-
securities and derivatives) and are not subject to the same regulatory requirements as mutual
funds
The term hedge funds, first came into use in the 1950s to describe any investment fund that
used incentive fees, short selling, and leverage. Over time, hedge funds began to diversify their
investment portfolios to include other financial instruments and engage in a wider variety of
investment strategies. However, hedge funds today may or may not utilize the hedging and
arbitrage strategies that hedge funds historically employed, and many engage in relatively
traditional, long only equity strategies.
Other unregistered investment pools, such as venture capital funds, private equity funds and
commodity pools, are sometimes referred to as hedge funds. Although all of these investment
vehicles are similar in that they accept investors money and generally invest it on a collective basis,
they also have characteristics that distinguish them from hedge funds. Hedge Fund Investment
strategies tend to be quite different from those followed by traditional asset managers. Moreover, each
fund usually follows its own proprietary strategies
Hedge funds have attracted significant capital over the last decade, triggered by successful track
records. The global hedge funds volume has increased from US $ 50 billion in 1988 toUS$750 billion
in 2003 yielding an astonishing cumulative average growth rate (CAGR) of 24 %. The global hedge
fund volume accounts for about 1% of the combined global equity and bond market. Hedge funds are a
growing segment of asset management industry and increasingly becoming popular not only with high
net worth individual investors but also with institutional investors including university funds, pension
funds, insurance and endowments. Hedge funds are sometimes perceived to be speculative and
volatile. However, not all funds exhibit such characteristics.
3. Objectives of the study

The objectives of the study are: To understand the concept of hedge fund in India and
overseas. To know the history of the hedge fund industry To study the various types of hedge funds
and To know the difference between mutual fund and hedge fund.
4. Hedge Fund Strategies:

Convertible arbitrage: Purchase and sale strategy i.e. purchase convertible securities and at the same
time sale the underlying equity.
Distressed Securities: Buys equity, debt, or trade claims at deep discounts of companies in or facing
bankruptcy or reorganization, with a view to capturing returns from mispricing of improved cash flow or
value.
Hedge equities: Long or short investments in equities and their derivatives and it may be global or
country specific, hedging against downturns in equity markets by shorting overvalued stock.
241
Macro: Aims to profit from changes in global economies typically brought about by shifts in government
policy which impact interest rates, in turn affecting currency, stock, and bond markets.
Income: Invests with primary focus on yield or current income rather than only on capital gains. May
utilize leverage to buy bonds and sometimes fixed income derivatives in order to profit from principal
appreciation and interest income.
Equity Market Neutral: Using statistical techniques and valuation models to capture fundamental
inefficiency in equity markets.
Risk Arbitrage (Merger Arbitrage): Trading in equities of companies likely to undergo some merger
and acquisition activity and there are two principle types of arbitrage: cash merger and stock merger.
Multi-strategy: Investment approach is diversified by employing various Hedge Fund strategies

simultaneously to realize short- and long-term gains.
5. Market overview: Structure and Size

Hedge Fund Market Structure:
Operational Structure:
Hedge funds are usually not operated in-house by their employees. They are just investment
vehicles owned by investors and sponsors (or limited and general parents) and rely on external service
providers to conduct the funds day-to-day business, including managing the fund portfolio and
providing administrative services. So for this type of operation structure, hedge funds establish
relationships with all the necessary industry service providers:
The sponsors and the investors:
The sponsor is the creator of the fund and he will typically hold a member of the founder shares in the
fund; that is as we talked early (page 1) the sponsor will be the general partner and the investor will be
the limited partner.
6. Hedge Fund and Other Pooled Investment Vehicles:

Hedge funds are sometimes called as rich mans mutual fund. In addition, other unregistered
investment pools, such as venture capital funds, private equity funds and commodity pools, are
sometimes referred to as hedge funds. Although all of these investment vehicles are similar in that
they accept investors money and generally invest it on a collective basis, they also have
characteristics that distinguish them from hedge funds.
242
9. Reasons for Rapid Growth of Hedge Fund Industry
While high net worth individuals remain the main source of capital, hedge funds are
becoming more popular among institutional and retail investors. Funds of funds (hedge funds) and
other hedge fund -linked products are increasingly being marketed to the retail investors in some
jurisdictions. There are a number of factors behind the rising demand for hedge funds. The
unprecedented Bull Run in the US equity markets during the 1990s swelled investment portfolios
this lead both fund managers and investors to become more keenly aware of the need for
diversification. Hedge funds are seen as a natural hedge for controlling downside risk because
they employ exotic investments strategies believed to generate returns that are uncorrelated to asset
classes.
Until recently, the bursting of the technology and telecommunications bubbles, the
wave of scandals that hit corporate America and the uncertainties in the US economy have
lead to a general decline in the stock markets worldwide. This in turn provided fresh impetus for
hedge funds as investors searched for absolute returns.
The growing demand for hedge fund products has brought changes on the supply side of the
market. The prospect of untold riches has spurred on many former fund managers and proprietary
trades to strike out on their own and set up new hedge funds. With hedge funds entering the main
stream and becoming respectable, an increasing number of banks, insurance companies, pension
funds, are investing in them.
Conclusion
Unfortunately, hedge funds have been labeled by many as the vehicle that will provide high
returns on this hedge body of investable wealth. Yet hedge funds are limited in their ability to
accommodate such large asset holding while preserving higher returns. It is in this sense that the very
existence of hedge funds, as originally constituted, has disappeared under the weight of their
extraordinary growth over the past five years. Today, hedge funds are estimated to be managing about a
total of $1 trillion or about 7% of total US financial net worth: less when it is recalled that many
foreign investors are included in the $1 trillion hedge funds total. Still, return to large hedge funds,
those with over $3 billion under management , are averaging between 10 and 15 percent annually,
still high relative to current low single-digit returns on US equity markets, but really just a reflection of
the hedge funds aggressive inclination to invest in more rapidly rising foreign stock and bond markets.
243
E-CRM & BANKING
P. Senthilmurugan, Lecturer, Dept of Management Studies, Tagore Engg. College, Chennai 48
INTRODUCTION
Many companies today are racing to re-establish their connections to new as well as existing
customers to boost long-term customer loyalty. Some companies are competing effectively and
winning this race through the implementation of relationship marketing principles using strategic and
technology-based customer relationship management (CRM) applications. Today marketing is not
just developing, delivering and selling, it is moving towards developing and maintaining mutually
long term relationships with customers. Relationship marketing is becoming important in financial
service. If a bank develops and sustains a solid relationship with its customers, its competitors cannot
easily replace them and therefore this relationship provides for a sustained competitive advantage.
NEED FOR THE STUDY

These five banks are already adapting themselves through this mindset more or less. The
banks proceed to this important issue differently with different rates of success in customer
satisfaction and customer relationship management. So, with a comparative approach their attitudes
toward e-CRM will reveal and embrace their success and failure factors.
RESEARCH DEISGN
The research design followed for this study has been descriptive in nature where the aim
would be to make a relative study about the advantages accruing to the 5 private banks ICICI
Bank, HDFC Bank, IDB bank, Axis bank and Yes Bank from the perspective of its customers and its
employees with respect to e-CRM.. The information sources used for this study could be grouped into
two categories as primary data and secondary data. The tool used for collecting primary data was a
questionnaire and the respondents were 125 customers belong to the various banks covered by the
study.
ANALYSIS
Demographics of the Sample
TABLE 1
Gender Percentage
Male 69.6
Female 30.4
Age Percentage
< 25 50.4
25 - 35 32.0
35 - 45 12.8
> 45 4.8
Educational Qualification Percentage
UG 55.2
PG 30.4
Professional 11.2
Others 3.2
Banking with Percentage

ICICI Bank 60.8
HDFC 22.4
Axis Bank 6.4
IDBI Bank 8.0
Yes Bank 2.4
244
69.6% of the respondents are males and the remaining are females as covered by the
study. Majority of the respondents belong to the age group of less than 25 followed by those in the
age bracket of 25 35 years of age. It is to be noted that this age group is more inclined to online
banking than the other age groups. 55.2% of the respondents possess UG qualification whereas
30.4% are Post graduates. . 60.8% of the respondents covered by this study are customers of ICICI
Banks which is accepted to be the biggest public sector bank. About 22.4% are customers of HDFC
Bank and the other banks have shown a low level of customer base as compared to these two giant
banks.
Opinion on concept and various aspects of e-CRM

The responses pertaining to the above are summarised below :
TABLE 2
Meaning of e-CRM Percentage
Profitable Product Life Cycle Management 49.6
Client Value and Loyalty 24.0
Customer Retention 16.8
Better Customer Knowledge in order to cross-sell 9.6
Objective
Increase Revenue 44.0
Focus on right and Best customers 33.6
Increase Efficiency and Effectiveness of Sales 12.8
Multi-Channel Approach 9.6
Activities
Better Customer Preference Identification through channels 62.4
Client Differentiation and thus better client segmentation 37.6
Influence of e-CRM on different channels Percentage
Better Identification Of Client's Preference Regarding Distribution
36.0
Channels
Identification of Eventual Incompatibility Between The Channels 64.0
Measures of Strong Client-Bank Relationships
Client Satisfaction 57.6
Providing Appropriate Customer Information 27.2
Understanding Customer Needs 10.4
Improving Skills of Employees 4.8
Measures of Customer Interaction
Appropriate Response to Customer Request 52.8
Integration of business processes 27.2
Improving Channel Management 14.4
Maximizing Effectiveness and Efficiency of Operations 5.6
According to 49.6% of the customers, e-CRM is about the profitable product life cycle
management. 24% of respondents perceives e-CRM is about realizing the client value and loyal to
them whereas 16.8% of the respondents see e-CRM as the tool to retain the customers.
44% of the customers interpret objective of e-CRM of bank is to increase the revenue,
whereas 33.6% of respondents believe that the bank e-CRM is to focus on right and best customers.
12.8% of customers infer that Bank e-CRM helps to increase efficiency and effectiveness of Sales.
According 62.4% of customers, Bank e-CRM facilitates to identify the Customer Preference in a
better means through different channels. Rest deems that Bank e-CRM is to Client Segmentation
through Client Differentiation. Bank e-CRM influences on different channels and products of the
bank and it identifies the eventual incompatibility between the channels of the bank. This is agreed by
245
64% of the customers. Rest agrees that e-CRM influence the identification of clients preference about
the distributing channels in a dependable manner.
57.6 % of customers believe Client Satisfaction factor as a measure of Strong Client-Bank
Relationships. 27.2% of respondents believe that Provision appropriate Information to the Client plays
an important role in measuring the relationship of Client and the bank.
According to 52.8% of respondents, Customer Interaction could be measured from the

approach of response to the customers request in the appropriate way. 27.2% respondents think the
act of business processes integration could be a measure of Customer Interaction. Only least number
of respondents considers that if the Effectiveness and Efficiency of Operations are maximized, it
could a measure of customer interaction.
CHI-SQUARE TESTING
Bank Vs Objectives of bank e-CRM
Null Hypothesis (H0) : There is no association between the bank and the opinion on Objectives
of Bank e-CRM
Since P-value is less than 0.05, it is seen that irrespective of bank, majority of respondents have
expressed that the bank e-CRM objectives are for increasing the revenue.
Bank Vs Meaning of e-CRM

Null Hypothesis (H0) : There is no association between bank and opinion on meaning e-CRM
TABLE 4
Meaning of e-CRM
Better
Chi
Profitable Client Customer P-
Total Square
Product Life Value Knowledge value
Value
Cycle and Customer in order to
Management Loyalty Retention cross-sell
ICICI 39 16 12 9 76
Bank
Name of Bank
HDFC 12 5 8 3 28
Axis 4 4 0 0 8
Bank
25.20 0.032
IDBI 5 4 1 0 10
Bank
Yes 2 1 0 0 3
Bank
Total 62 30 21 12 125
Interpretation
Since P-value is less than 0.05, it is seen that irrespective of bank, majority of respondents have
understood the meaning of e-CRM as profitable product life cycle management.
Bank Vs Activities of Bank e-CRM
Null Hypothesis (H0) : There is no association between bank and the activities of Bank e-CRM
246
TABLE 5
Activities of Bank e-CRM
Better Customer Client
Chi-
Preference Differentiation
Total Square P-value
Identification and thus Better
Value
through Distribution Client
Channel Segmentation
ICICI Bank 49 27 76
HDFC 16 12 28
Name of
Bank
Axis Bank 4 4 8
33.39 0.028
IDBI Bank 8 2 10
Yes Bank 1 2 3
Total 78 47 125
Interpretation
Since P-value is less than 0.05, the null hypothesis is accepted at 5% level of significance. Chi
square value (33.39) represents the percentage of relationship shared between the bank and the
activities of bank e-CRM. Irrespective of the bank, majority of respondents have conveyed that Bank
e-CRMs activities involve identification of Customer preference through distribution channel of the
bank
Bank Vs Influence of e-CRM on Different Channels and Products

Null Hypothesis (H0) : There is no association between bank and the opinion about influence of e-
CRM on different channels and products
TABLE 6
Influence of e-CRM on Different
Channels and Products
Better Identification
Identification Of Chi-
Of Client's
Eventual Total Square P-value
Preference
Incompatibility Value
Regarding
Between The
Distribution
Channel
Channels
ICICI Bank 31 45 76
HDFC 5 23 28
Name of
Bank
Axis Bank 3 5 8 52.48 0.021

IDBI Bank 4 6 10
Yes Bank 2 1 3
Total 45 80 125
Interpretation
Since P-value is less than 0.05, it is inferred that irrespective of bank, majority of respondents
have expressed that e-CRM has better influence on identification of eventual incompatibility between
the distribution channels
Bank Vs Measures of Strong Client-Bank Relationships
Null Hypothesis (H0): There is no association between the bank and the opinion on measures of
strong client-bank relationship
247
TABLE 7
Measures of Strong Client-Bank Relationships

Chi-
Providing P-
Improvin Tota Squar
Client Appropriat Understandin valu
g skills of l e
Satisfactio e Customer g Customers e
Employee Value
n Informatio needs
s
n
ICICI 43 24 6 3 76
Bank
HDF 18 6 3 1 28
Name of Bank
C
Axis 3 2 2 1 8
Bank 0.03
38.07
6
IDBI 6 1 2 1 10
Bank
Yes 2 1 0 0 3
Bank
Total 72 34 13 6 125
Interpretation
Since P-value is less than 0.05, the null hypothesis is accepted at 5% level of significance. Chi
square value (38.07) represents the percentage of relationship shared between the bank and the
opinion on measures of strong client-bank relationship. Majority of them believes that if the bank
satisfies the client then it becomes the strong deciding factor for Client Bank relationship.
Bank Vs Measures of Customer Interaction

Null Hypothesis (H0): There is no association between bank and the opinion on measures of customer
interaction
TABLE 8
Measures of Customer Interaction
Appropriat Integratio Improving Maximising
Chi-
e Response n of Channel Effectivenes P-
Tota Squar
to Business Manageme s& valu
l e
Customer Processes nt Efficiency e
Value
Request of
Operations
ICICI 40 20 11 5 76
Bank
HDF 14 9 4 1 28
Name of Bank
C
Axis 3 2 2 1 8
0.03
Bank 42.35
9
IDBI 7 2 1 0 10
Bank
Yes 2 1 0 0 3
Bank
Total 66 34 18 7 125
Interpretation
Since P-value is less than 0.05, it is inferred that that there is relationship between bank and
opinion on measures of customer interaction.
248
Bank Vs Gender of Respondents
Null Hypothesis (H0): There is no association between the account holding bank and the gender of the
respondents
Gender of respondents Total
Chi-Square Value P-value
Male Female
ICICI Bank 54 22 76
HDFC 17 11 28
Name of
Bank
Axis Bank 6 2 8 28.34 0.042

IDBI Bank 8 2 10
Yes Bank 2 1 3
Total 87 38 125
Interpretation
Since P-value is less than 0.05, it is inferred that gender of the respondents influences choice of bank..
Bank Vs Age of Respondents

Null Hypothesis (H0): There is no association between the account holding bank and the age of the
respondents
Age of Respondents Total
Chi-Square P-
< 25 25 - 35 - 45 > 45 Value value
35
ICICI 39 24 10 3 76
Name of Bank
Bank
HDFC 12 12 4 0 28
Axis Bank 4 1 2 1 8 34.45 0.038
IDBI Bank 7 2 0 1 10
Yes Bank 1 1 0 1 3
Total 63 40 16 6 125
Interpretation
Since P-value is less than 0.05, it is inferred that age of the respondents has influence on the choice of
the bank to hold an account.
Bank Vs Educational Qualification of Respondents

Null Hypothesis (H0): There is no association between bank and the education qualification of the
respondents
Educational Qualification of Respondents Chi-
P-
UG PG Professional Others Total Square
value
Value
ICICI 40 27 8 1 76
Name of Bank
Bank
HDFC 19 3 4 2 28
Axis Bank 4 2 1 1 8 46.70 0.045
IDBI Bank 3 6 1 0 10
Yes Bank 3 0 0 0 3
Total 69 38 14 4 125
Interpretation
Since P-value is less than 0.05, it is inferred that education Qualification of the respondents has 47%
of persuasion on the preference of the bank to hold an account.
249
Age of Respondents Vs Activities of Bank with respect to e- CRM
Null Hypothesis (H0): There is no association between the age of the respondents and opinion on
activities of bank e-CRM
Activities of Bank CRM
Better Customer Chi-
Client P-
Preference Total Square
Differentiation and value
Identification Value
thus better Client
through Distribution
Segmentation
Channels
< 25 48 15 63
Respondents
25 - 19 21 40
Age of
35
35 - 8 8 16 50.33 0.016
45
> 45 3 3 6
Total 78 47 125
Interpretation
Since P-value is less than 0.05, it is seen that age of the respondents affect the opinion about the
activities in Bank e-CRM.
Age of Respondents Vs Influence of e-CRM on Different Channels and Products
Null Hypothesis (H0) : There is no association between the age of the respondents and the opinion
about influence of CRM on different channels and products
Influence of CRM on Different Channels and

Products
Better Identification Chi-
Identification of Total Square P-value
of Client's Preference
Eventual Value
Regarding
Incompatibility
Distribution
between the Channels
Channels
< 25 30 33 63
Respondents
25 - 8 32 40
Age of
35
35 - 5 11 16 18.31 0.04
45
> 45 2 4 6
Total 45 80 125
Interpretation
Since P-value is less than 0.05, age of the respondents affects the opinion of respondents about
influence of CRM on different channels and products.
OVERALL RANKING OF BANKS BASED ON THEIR E-CRM INITIATIVES

Ranking of banks as per the survey details and observations made with respect to e-CRM in the
private banking industry is as follows :
NAME OF BANK RANKING

ICICI BANK I
HDFC BANK II
IDBI BANK III
AXIS BANK IV
YES BANK V
250
Without an exception on every facility and option given to banking customer, the above ranking
holds good.
CONCLUSION
Customer Relationship management marketing (CRM) is about introducing the right product
to the right customer at the right time through the right channel to satisfy the customer's evolving
demands. E-CRM is not just customer service, self-service web applications, tools or the analysis of
customers' purchasing behaviors on the internet; E-CRM is all of these initiatives working together to
enable an organization to more effectively respond to its customers' needs and to market to them on a
one-to-one basis
REFERENCES
1. Dafermos, G.N. Macromedia is blogging at full speed, in Blogging the Market: How weblogs are
turning corporate machines into real conversations, 2003.
2. Economist (UK). "A Survey of E-Management", 2000, November.
Kaplan, P.J. F'd Companies: Spectacular dot-com flameouts, NY: Simon & Schuster, 2002.
3. Peppers D. & Rogers M.. Enterprise One-to-One: tools for competing in the interactive age,
Doubleday/Currency, 1997.
4. Postma, P. The New Marketing Era: Marketing to the imagination in a technology driven world,
McGraw-Hill, 1999.
5. Selland, C. Beyond the Hype: the impact of Webservices on CRM, Reservoir Partners White
Paper, March, 2003.
251
INVESTMENTS AND RISKS
M.Gayathri Devi M.B.A, RVS Institute Of Management Studies
Investing in various types of assets is an interesting activity that attracts people from all walks
of life irrespective of their occupation, economic status, education and family background. When a
person has more money than he requires for current consumption, he would be coined as a potential
investor. The investor who is having extra cash could invest it in securities or in any other assets like
gold or real estate or could simply deposit it in his bank account. The companies that have extra
income may like to invest their money in the extension of the existing firm or undertake new venture.
All of these activities in a broader sense mean investment.
INVESTMENT:
In finance, the purchase of a financial product or other item of value with an expectation of
favorable future returns. In general terms, investment means the use money in the hope of making
more money.
To the economist, investment is the net addition made to the nations capital stock that
consists of goods and services that are used in the production process. A net addition to the capital
stock means an increase in the buildings, equipments or inventories. These capital stocks are used to
produce other goods and services.
RISK:
Risk of holding securities is related with the probability of actual return becoming less than the
expected return. The word risk is synonymous with the phrase variability of return. Investments risk is
just as important as measuring its expected rate of return because minimizing risk and maximizing the
rate of return are interrelated objectives in the investment management. An investment whose rate of
return varies widely from period to period is risky than whose return that does not change much.
Every investor like to reduce the risk of his investment by proper combination of different securities.
Investment Risks and Alternatives

There are many types of risk involved with investments. Let's consider two types: investment
risk and purchasing power risk.
Investment risk is the probability that the actual return on an investment will be different from
what we expect. This is the type of risk one usually thinks of when considering investments. For
example, CD's and EE savings bonds are considered safe investments because the probability that the
actual return on our investment will be what we expect is 100 percent. They are guaranteed. On the
other hand, stocks are considered more risky because we have no guarantee about the actual return.
Of equal importance is a second type of risk associated with investments which is also
important to consider. Purchasing power risk is the risk that the value of the money we invest will not
keep up with inflation. In general, this risk is greatest with those investment alternatives with a set,
guaranteed rate of return. So while CD's have a low investment risk, they have a high purchasing
power risk.
Pre-Investment Questions
Fraud is always a possibility, even with secured, regulated investments. Before investing, ask
tough questions, both of us and those who are soliciting our investments. If the answer to any of these
questions is "no" or if the answers are vague or complicated more than likely the investment
being pitched is a fraud.
Is the company Im investing in registered to sell securities?

252
Be cautious if the company selling us stock, assets, or partnership units has not registered its
securities. Companies that register their securities file prospectuses and annual reports with securities
regulators. If a promoter tells us that our investment is "structured" to exempt the securities of the
company from registration, we may be dealing with an outfit thats purposely avoiding contact with
regulators.
Is it "too late" if I dont invest my money now?

Using sales scripts, scam artists create the impression that only a few shares of stock or
partnership units are left. They try to convince us that we will miss out on a big opportunity if we
dont send them thousands of dollars by overnight courier or wire transfer. Once we give our money
to a scam artist, it may be too late to get it back.
Does the investment have a track record?

Claiming that their "opportunity" is similar to those of "hot" entrepreneurs, scam artists often
use news stories about the success of legitimate companies as bait. Unfortunately, success stories of
other companies in the field are irrelevant for our purposes. Get the track record of the company were
considering investing in and the background of the people promoting it.
Where is my money going?

Legitimate companies account for investors money at all times. Ask for written proof of how
much of our money is going to the actual purchase or development of the opportunity and how much
is going to commissions, promoters profits and marketing costs. If most of our financial investment is
slated to cover expenses and costs, much less will be available to earn a return. Telemarketing is
particularly expensive; if we are investing in a telemarketed investment, how much are our brokers
getting paid to talk to us?
Do I have an independent, knowledgeable, trustworthy person who can advise me?

Get an independent appraisal of the specific asset, business or venture we are considering. An
appraisal offered by the party selling the investment opportunity can be fake. Talk to the previous
owners of an asset or a business youre acquiring for its value history. Discuss all investment ideas or
plans with an accountant or an advisor you know and trust.
Do I know who Im dealing with?

Can we find published information about the company in which we are investing, proof that
the company has registered the securities it is selling with a government agency (if required), or
someone we trust who has heard of the company? Have we checked with our state securities agency to
see if the promoter or sales person is licensed to sell securities in our state, if required? If not, be
cautious. We are giving our money to strangers.
Checking law enforcement agencies and Better Business Bureaus in the community where
promoters are located is prudent, but not fool-proof. It may be too soon for the companys victims to
realize theyve been defrauded or to have lodged complaints with the authorities. In addition,
fraudulent promoters can lie about their name or their business history, or even pay people to be
"references."
Can I tell a genuine company from a fictional one?

Dont let appearances fool you. For a few dollars, anyone can incorporate an entity. Personal
computers and desktop publishing software help scam artists produce slick promotional materials.
Phone service providers can put toll-free telephone numbers in homes.
Did my sales representative tell me the risk of losing my money was high?
Sales representatives should tell us the risk of particular investments. Be particularly
suspicious of sales pitches that play down risk or portray written risk disclosures as routine formalities
253
required by the government. Believe the risk disclosures that say us could lose our whole investment.
When our money is gone, fraudulent investment promoters often use "risk disclosures" against us.
Can I be certain a promoter is not lying to me?

Scam artists lie. Their success depends on having an airtight answer for everything. They
inflate the costs and value of worthless investments. They promise us profits years down the road so
we wont find out that our investment is a scam until long after theyve disappeared with our money.
Do I know when something is too good to be true?

Investing is risky business. Anyone who tells us an investment is likely to turn a profit quickly
should have a basis for the claim. Demand written proof of profit projections from independent
sources. Be especially wary when someone tells us profits will be big enough to offset the risk of
investing. Every potentially high profit investment is high risk.
254
PERSPECTIVES OF SMALL INVESTORS ON INVESTMENT AND RISK
M.Kalavalli, Research Scholar, DOMs,Jawaharlal Institute of Technology, Coimbatore
Dr.P.T.Vijaya Rajakumar, Professor & Director, DOM, Nehru Institute of Engineering &
Technology, Coimbatore
In the prevailing environment of global economic and financial uncertainty, investment should
be made cautiously to avoid or reduce risk. Small investors are individuals who purchase small
amounts of securities for him/herself, as opposed to an institutional investor or individual or retail
investors. They prefer Low risk, profit making, benefiting from volatile market conditions and short-
term investment are characteristics of small investors. The investors seldom prefer to do research or
collect information on market. The efficient allocation of capital is important for investment and risk
endurance by the small investors. There are many other kinds of investment opportunities for small
investors, which are fixed deposits, bonds, mutual funds, insurance and the like. These can be quite
confusing for small investors. Though each investment opportunity seems promising, not every
investor is impressed by them. All an investor needs to know is the purpose and period of investment,
risk tolerance and expectations of return. The paper tries to help these small investors and maximize
their hard-gain money, investment networking portals offer advice and expertise about the investment
problems, how the choice to be made between investments, when should an existing asset be replaced,
when is the optimum timing of investment. In related to the investment decisions, there are
perspectives to different degrees of risk, like, what is the risk in investment, and the concept of risk in
investment decisions. The paper explores the issues relating to the investment planning and different
types of investment alternatives and risk and return.
INTRODUCTION:
Investment refers to a commitment of funds to one or more assets that will be held over some
future time period. Almost all individual have wealth of some kind, ranging from the value of their
services in the workplace to tangible assets to monetary assets. Anything not consumed today and
saved for future use can be considered an investment. For our purposes, investment will mean a
measurable assets retained in order to increase ones personal wealth.
Investment in India has grown at a phenomenal pace in the last three to four years. Several industries,
including business process outsourcing, information technology, health care, construction, real estate
and infrastructure, have benefited immensely from the investments by the small investors.
Risk:
Small Investor Perspectives:

The small investor is heavily conditioned by the past, with investment patterns being
determined by known opportunities, and it takes considerable time for them to alter these patterns.
Information flows, especially about structural changes, are slow in percolating down to them, and
their ability to appreciate the implications is limited. In our opinion, there are major questions that
need to be addressed adequately in order to persuade the small investor in India to enter.
Investment Scenario in India:

Emerging strong even during the scariest phase of global financial meltdown, India has
become one of the favorite investment destinations for the foreign investors across the globe. The
investment scenario in India is getting better and better with each passing day due to high confidence
level of the investors. Today, India is considered the 4th biggest economy in the world. Its impressive
GDP rate, especially in the field of purchasing power, has catapulted it to second position among all
the developing nations.
According to forecasts, Indian economy will grow to become 60% in size of the economy of
US. It will also witness macro-level stability in economic conditions. Behind all this, investment can
be said to be the key player. In the midst of the global economic crises, the Indian economy offers an
investment opportunity in its internal consumption surge. In the coming decade, due to its favorable
255
demographics, Indias rising per capita income and consumption boom is likely to make the country a
superior investment opportunity, compared to other emerging markets. India is somewhat safeguarded
from external shocks due to its inward-driven growth story fuelled by domestic consumption and
investments in infrastructure, compared to other emerging economies driven mainly by exports. The
pressure of margins which are shaping the inflationary expectations and the impact of monetary
tightening are visible in a slowdown in key sectors like auto, consumer durables, and real estate.
Though the Foreign Direct Investment (FDI) in educational sector, comprising higher
education, has been allowed by the Indian government, there are still many shortfalls that need to be
overcome. An increase in the enrollment figures is being constantly witnessed. But, when it comes to
cumulative states expenditure, the scene is quite gloomy. For the period 2007-08, a fall of about 18%
has been seen in the total expenditure. Further, a clear gap in the per capita education expenditure
among the states can also be seen. Per capita fund inflow to educational sector in Uttar Pradesh stood
at ` 483 whereas in Bihar it was ` 487 in 2005-06. Himachal Pradesh has 1777 and Maharashtra and
Kerala show ` 1034 per capita fund flow.
Despite good financial performance of many of the states, their spending scenario in
educational sector has been found in poor condition.
Infrastructure Investment:
Investment scenario in India in infrastructure sector is attractive. Many sectors have been
allowed to receive private investment, which is truly a turning point. In past few years, many road
projects have been launched under National Highway Development Programme. The project costing
neared about US$ 12 billion. In this, the foreign construction companies have also been invited to take
part. Telecom sector and power reforms have also experienced massive improvement. Telecom and
Oil and Gas sector are seeing disinvestments processes. Government is also thinking of introducing a
more integrated transport system with chalking out plans for the investment.
Current Investment Scenario in India Globalization and Foreign Direct Investment form an
integral part of all the developed as well as developing economies. In fact, the growth of the
underdeveloped economies is also dependant on these key factors. These components equip any
nation with new skills, new items and provide smooth access to markets and technology. Today, every
nation across the globe is looking for foreign and overseas investors. Whether it's India or China,
everyone wants foreign investments. According to recent trends, India is only second to China in the
league of favorite investment destinations.
In the report issued by Department of Industrial Policy and Promotion, the fund inflow to
India reached US$ 27.3 billion in the period 2008-09, considered from the month of April 2008 to the
month of March 2009. Last quarter of 2008-09 alone witnessed an inflow of approx. US$ 6.2 billion.
In the reports issued by Reserve Bank of India for outward investment from India, a growth of 29.6%
to US$17.4 billion has been seen in the period 2007-08. The figures do not include individuals and
banks. India is considered the 2nd highest foreign employer in the United Kingdom after the United
States. Global Investment Scenario Along with India, the others who are participating in the race of
investment among the developing economies are China, Singapore, Malaysia, Russia and Brazil. Most
of them are vying for contracts from USA and Europe.
Some of the well known companies which offer various kinds of India Investment fund are:
ICICI Prudential
HDFC Prudence Fund
HDFC MIP
Escorts Liquid Plan
Birla Sun Life
256
Franklin India Index
All these investment funds offer good returns on the money that is put and are also secure. They can
be a wonderful option to invest and enjoy financial stability in the long run.
Government exemptions for certain investments risk analysis:

Tax Rebates under Indian Income Tax Act
Specified Investment Schemes u/s 80C
Life insurance premium payments
Contributions to Employees Provident Fund (EPF) / GPF
Public Provident Fund (maximum Rs 70,000 in a year)
National Saving Certificates including accrued interest. [NSC]
Unit Linked Insurance Plan (ULIP)
5-Year fixed deposits with banks and Post Office
Repayment of Housing Loan (Principal)
CONCLUSION:
The investors are advised to take into account their risk appetite before investing. That small
investor attitude towards change, and that this will not be possible without a radical overhaul of the
small savings schemes in India. The lack of depth and width in government bond markets needs to
increase so that small investors can invest in debt securities for capital gains rather than simply hold
them to maturity as income instruments. There seems to be widespread misconception about pooled
investment vehicles that needs to be removed as investments such as mutual funds can really fulfill
the entire range of risk appetite for small investors while increasing the depth and width of primary
and secondary debt capital markets. Staggered investments considering the prevailing volatility in the
markets, small investors should invest in a staggered manner over a period of time. The near-term
concerns about the global macro-economic scenario, high commodity prices, inflation in Asian
economies and the unearthing of local scams continue to emanate. Thus, the overall structure growth
story of India still remains intact, which will attract the small investor.
REFERENCES:
Pronab Sen, Nikhil Bahel, Shikhar Ranjan, Developing the Indian Debt Capital Markets:
Small Investor Perspectives, perspective planning division planning commission government
of India, July 2003.
Brokers best Ambareesh Baliga, coo way2wealth, Emerging Market, Domestic Growth pg.
16, Dalal Street Investment Journal, Aug 15 28, 2011.
Hemant rusting ceo wiseinvest advisors pvt ltd, rising inflation and your portfolio pg.89,
Aug 15-28, 2011, Dalal street Investment Journal
Visemih William muffee, risk management in rural financial institutions in Cameroon: a case
of the buea police co-operative credit union limited, International Economics & Financial
Journal, vol.5, Nos. 1-2, January-December (2010) : 61-73, pg.61.
Sudhidra Bhat, Security Analysis and Portfolio Management, Excel Books, First Edition: New
Delhi, 2008
257
MERGER & ACQUISITION
Ms. R. Priya Rathna (Faculty), Ms. K. Maragatham & Mr. A. Bhuvaragavan
INTRODUCTION:
Mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy,
corporate finance and management dealing with the buying, selling, dividing and combining of
different companies and similar entities that can aid, finance, or help an enterprise grow rapidly in its
sector or location of origin or a new field or new location without creating a subsidiary, other child
entity or using a joint venture. The distinction between a "merger" and an "acquisition" has become
increasingly blurred in various respects (particularly in terms of the ultimate economic outcome),
although it has not completely disappeared in all situations.
ACQUISITION:
An acquisition is the purchase of one business or company by another company or other
business entity. Consolidation occurs when two companies combine together to form a new enterprise
altogether, and neither of the previous companies survives independently. Acquisitions are divided
into "private" and "public" acquisitions, depending on whether the acquiree or merging company (also
termed a target) is or is not listed on public stock markets. An additional dimension or categorization
consists of whether an acquisition is friendly or hostile.
Achieving acquisition success has proven to be very difficult, while various studies have
shown that 50% of acquisitions were unsuccessful. The acquisition process is very complex, with
many dimensions influencing its outcome.
1. Improper documentation and changing implicit knowledge makes it difficult to share
information during acquisition.
2. For acquired firm symbolic and cultural independence which is the base of technology and
capabilities are more important than administrative independence.
3. Detailed knowledge exchange and integrations are difficult when the acquired firm is large
and high performing.
4. Management of executives from acquired firm is critical in terms of promotions and pay
incentives to utilize their talent and value their expertise.
5. Transfer of technologies and capabilities are most difficult task to manage because of
complications of acquisition implementation. The risk of losing implicit knowledge is always
associated with the fast pace acquisition.
DISTINCTION BETWEEN MERGERS AND ACQUISITIONS:

Although often used synonymously, the terms merger and acquisition mean slightly different
things. This paragraph does not make a clear distinction between the legal concept of a merger (with
the resulting corporate mechanics, statutory merger or statutory consolidation, which have nothing to
do with the resulting power grab as between the management of the target and the acquirer) and the
business point of view of a "merger", which can be achieved independently of the corporate
mechanics through various means such as "triangular merger", statutory merger, acquisition, etc.
When one company takes over another and clearly establishes itself as the new owner, the purchase is
called an acquisition. From a legal point of view, the target company ceases to exist, the buyer
"swallows" the business and the buyer's stock continues to be traded.
FINANCING M&A
Mergers are generally differentiated from acquisitions partly by the way in which they are
financed and partly by the relative size of the companies. Various methods of financing an M&A deal
exist:
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CASH
Payment by cash. Such transactions are usually termed acquisitions rather than mergers
because the shareholders of the target company are removed from the picture and the target comes
under the (indirect) control of the bidder's shareholders.
STOCK
Payment in the acquiring company's stock, issued to the shareholders of the acquired company
at a given ratio proportional to the valuation of the latter.
Which method of financing to choose?

There are some elements to think about when choosing the form of payment. When submitting
an offer, the acquiring firm should consider other potential bidders and think strategically. The form
of payment might be decisive for the seller. With pure cash deals, there is no doubt on the real value
of the bid (without considering an eventual earnout). The contingency of the share payment is indeed
removed. Thus, a cash offer preempts competitors better than securities. Taxes are a second element
to consider and should be evaluated with the counsel of competent tax and accounting advisers. Third,
with a share deal the buyers capital structure might be affected and the control of the New company
modified. If the issuance of shares is necessary, shareholders of the acquiring company might prevent
such capital increase at the general meeting of shareholders. The risk is removed with a cash
transaction. Then, the balance sheet of the buyer will be modified and the decision maker should take
into account the effects on the reported financial results. For example, in a pure cash deal (financed
from the companys current account), liquidity ratios might decrease. On the other hand, in a pure
stock for stock transaction (financed from the issuance of new shares), the company might show lower
profitability ratios (e.g. ROA). However, economic dilution must prevail towards accounting dilution
when making the choice. The form of payment and financing options are tightly linked. If the buyer
pays cash, there are three main financing options:
Period Name Facet

18971904 First Wave Horizontal mergers
19161929 Second Wave Vertical mergers
19651969 Third Wave Diversified conglomerate mergers
19811989 Fourth Wave Congeneric mergers; Hostile takeovers; Corporate Raiding
19922000 Fifth Wave Cross-border mergers
20032008 Sixth Wave Shareholder Activism, Private Equity, LBO
Deal objectives in more recent merger waves

During the third merger wave (19651989), corporate marriages involved more diverse
companies. Acquirers more frequently bought into different industries. Sometimes this was done to
smooth out cyclical bumps, to diversify, the hope being that it would hedge an investment portfolio.
Starting in the fourth merger wave (19921998) and continuing today, companies are more likely to
acquire in the same business, or close to it, firms that complement and strengthen an acquirers
capacity to serve customers.
Buyers arent necessarily hungry for the target companies hard assets. Now theyre going
after entirely different prizes. The hot prizes arent thingstheyre thoughts, methodologies, people
and relationships. Soft goods, so to speak.
Many companies are being bought for their patents, licenses, market share, name brand, research
staffs, methods, customer base, or culture. Soft capital, like this, is very perishable, fragile, and fluid.
Integrating it usually takes more finesse and expertise than integrating machinery, real estate,
inventory and other tangibles.
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CONCLUSION
Many companies find that the best way to get ahead is to expand ownership boundaries
through mergers and acquisitions. For others, separating the public ownership of a subsidiary or
business segment offers more advantages. At least in theory, mergers create synergies and economies
of scale, expanding operations and cutting costs. Investors can take comfort in the idea that a merger
will deliver enhanced market power.
By contrast, de-merged companies often enjoy improved operating performance thanks to

redesigned management incentives. Additional capital can fund growth organically or through
acquisition. Meanwhile, investors benefit from the improved information flow from de-merged
companies. M&A comes in all shapes and sizes, and investors need to consider the complex issues
involved in M&A. The most beneficial form of equity structure involves a complete analysis of the
costs and benefits associated with the deals
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RECENT TRENDS IN MICRO FINANCE IN INDIA
Mr.M.Karthikeyan, Asst. Prof. Ph.D Research Scholar Department of Commerce, Karpagam
University, Coimbatore.
Dr.P.Sivakami, Assistant Professor,Department of Commerce,Govt Arts College,Coimbatore.
Introduction
Microfinance is the extension of very small loans (microloans) to those in poverty designed
to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit
history and therefore cannot meet even the most minimal qualifications to gain access to traditional
credit. Microfinance is a part of microfinance, which is the provision of a wider range of financial
services to the very poor.
Microfinance is a financial innovation that is generally considered to have originated with the
Grameen Bank in Bangladesh. In that country, it has successfully enabled extremely impoverished
people to engage in self-employment projects that allow them to generate an income and, in many
cases, begin to build wealth and exit poverty.
Microfinance has been around for about three decades and it has evolved significantly as new
loan products and new lending/business models were invented and new markets were explored. Many
microfinance providers, who started off as not-for-profit setups, later grew to become large non-
banking financial institutions that offered an array of financial services apart from loans. A few of
these grew to scales that warranted IPOs as well (MicroBanking Bulletin, Issue 18, 2009).
This is not surprising. The bottom of the pyramid, because of its sheer volume, presents great
opportunities for business minded entities that wish to provide loans or insurance products. However,
credit risk and opportunity go hand in hand, and as old challenges in microfinance are addressed, new
ones keep emerging. This post talks about a few positive and negative trends in the microfinance
sector, based on which, we can confidently say that this sector will soon grow into a complex and
thriving industry.
Some Encouraging Trends in the Microfinance Sector

In the face of several obstacles, there are certain encouraging trends taking place as
businesses and governments realize the importance of the development sector. Below are a
few noticeable initiatives being adopted by MFIs as they look for ways to further penetrate markets
and make their credit ventures sustainable.
Microfinance Trend 1 Diversification of Microfinance Institutions: microfinance

providers are beginning to broaden the range of services offered under the microfinance umbrella
which started with loans, but now includes insurance, savings and money transfer facilities as well.
Microfinance Trend 2 Specialization of Microfinance Institutions: microfinance
providers are beginning to focus on certain livelihoods such as crop insurance, loans for handicraft
businesses, or loans for fisheries, etc. As microfinance institutions study each business model, they
can design loan products that are aligned with the unique cash flow cycles or the varying demand
patters of the clients business.
Microfinance Trend 3 Turnkey Solutions: some microfinance institutions are beginning
to provide services other than loans and savings, to support their clients businesses. Such services
include assisting clients with supply chain management, or sharing marketing infrastructure to
enhance these micro-businesses.
Microfinance Trend 4 New channels: clients no longer have to visit physical offices of
microfinance institutions in order to repay loans or acquire a new credit line. Franchise-based business
models and branchless banking are becoming effective ways of reaching potential clients who often
live in disparate rural areas. An example of this is Kivas API platform called Build Kiva.
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Institutions offering Micro Finance in India

Different types of institutions in India offer these micro finances and they can be non-
governmental organizations, credit unions, non-bank financial intermediaries, and commercial banks.
These micro finance institutions operate as per the guidelines of the apex bank of India - The Reserve
Bank of India. Further, the Reserve Bank of India has formed a group to facilitate the development of
the micro finance industry in India. The main functions of these four groups are as follows
Structure and sustainability

Funding
Regulations
Capacity building
Recommendations for the industry of Micro Finance in India
Creation of an autonomous and professionally-managed National Micro Finance Equity Fund

with an initial subscription of ` 200 crore. The fund of the banks towards the equity fund are
be treated as weaker section lending under the priority sector and the quantum of the equity
fund to be raised to ` 500 crore within the next two to three years
Creation of a special type of non-banking finance companies to facilitate growth of the micro
finance business with initial capital of ` 25 lakh .The Reserve Bank of India should facilitate
establishing more micro-finance funds
Subsidy funds should be mobilized from Rural Infrastructure Development Fund, National
Bank for Agriculture and Rural Development and also as the profits of commercial banks
The Reserve Bank of India should establish a permanent working group on micro-finance to
monitor and review the progress of resources and also undertake the capacity building
initiatives
All Non-governmental organization or the self help groups, those who facilitate micro finance
should transform themselves into mutually aided co-operative societies, maximum within a
period of two years
Conclusion
Microfinance programmes are one of the most important interventions in developing country
efforts to reduce poverty. Recent years have seen a huge growth of the sector in terms of numbers and
size of organisations, numbers of clients and provision of subsidised donor funding. A large
proportion of Microfinance Institutions (MFIs) include poverty reduction in their Mission, and donor
funding is allocated to microfinance on this basis. At the most basic level there is a need to
understand and improve the impact of Microfinance as a key premise to successful poverty reduction.
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FINANCIAL MARKETS INNOVATIONS AND GROWTH
S.Sasirekha, Mr.S.Athul Pandey, VLB Janakiammal College of Arts & College
INTRODUCTION - MARKET:
Both general markets (where many commodities are traded) and specialized markets (where
only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in
one "place", thus making it easier for them to find each other. An economy which relies primarily on
interactions between buyers and sellers to allocate resources is known as a market economy in
contrast either to a command economy or to a non-market economy such as a gift economy.
DEFINITIONS OF FINANCIAL MARKET:

In economics, a financial market is a mechanism that allows people to buy and sell (trade)
financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural
goods), and other fungible items of value at low transaction costs and at prices that reflect the
efficient-market hypothesis.
A generic term for the markets in which financial instruments are traded. Financial
instruments have no intrinsic value of themselves.
A category of markets for the exchange of capital and credit, including the money markets and the
capital markets.
Institutions acting as intermediaries between suppliers and users of money. They are
wholesale and retailers of funds.
In finance, financial markets facilitate:

The raising of capital (in the capital markets)
The transfer of risk (in the derivatives markets)
International trade (in the currency markets)
and are used to match those who want capital to those who have it.
Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts
are securities which may be freely bought or sold. In return for lending money to the borrower, the
lender will expect some compensation in the form of interest or dividends.
TYPES OF FINANCIAL MARKETS:

The financial markets can be divided into different subtypes:
Capital markets which consist of:
o Stock markets, which provide financing through the issuance of shares or common
stock, and enable the subsequent trading thereof.
o Bond markets, which provide financing through the issuance of bonds, and enable the
subsequent trading thereof.
Commodity markets, which facilitate the trading of commodities.
Money markets, which provide short term debt financing and investment.
Derivatives markets, which provide instruments for the management of financial risk.
o Futures markets, which provide standardized forward contracts for trading products
at some future date.
Insurance markets, which facilitate the redistribution of various risks.
Foreign exchange markets, which facilitate the trading of foreign exchange.
The capital markets consist of primary markets and secondary markets. Newly formed (issued)
securities are bought or sold in primary markets. Secondary markets allow investors to sell securities
that they hold or buy existing securities.
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INDIAN FINANCIAL MARKET - ORIGIN AND GROWTH:
Indian Financial market is one of the oldest in the world and is considered to be the fastest
growing and best among all the markets of the emerging economies. The history of Indian capital
markets dates back 200 years toward the end of the 18th century when India was under the rule of the
East India Company. The development of the capital market in India concentrated around Mumbai
where no less than 200 to 250 securities brokers were active during the second half of the 19th century.
The financial market in India today is more developed than many other sectors because it was
organized long before with the securities exchanges of Mumbai, Ahmedabad and Kolkata were
established as early as the 19th century. By the early 1960s the total number of securities exchanges in
India rose to eight, including Mumbai, Ahmedabad and Kolkata apart from Madras, Kanpur, Delhi,
Bangalore and Pune. Today there are 21 regional securities exchanges in India in addition to the
centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India).
The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter
Exchange of India) during the mid 1990s by the government of India was meant to usher in an easier
and more transparent form of trading in securities. The NSE was conceived as the market for trading in
the securities of companies from the large-scale sector and the OTCEI for those from the small-scale
sector. While the NSE has not just done well to grow and evolve into the virtual backbone of capital
markets in India the OTCEI struggled and is yet to show any sign of growth and development.
FINANCIAL MARKET INNOVATIONS - EMERGING TRENDS:

Innovations in financial markets have played a crucial role in shaping the economic landscape
of the leading and also emerging economies of the world. In the past few decades, capital markets, risk
management tools and techniques and financial services have witnessed many successful innovations
leading to better integration and greater maturity of world financial markets. These financial
innovations have promoted efficiency and growth of financial markets and provided low-cost and
effective financial tools and instruments, have created new opportunities and thrown up new challenges
for all market participants.
Innovations and recent trends in capital markets explores the changing nature of financial
market and gives few recommendations for the growth through innovation. Innovation covers a new
trading system at NASDAQ, hedge funds, exchange traded funds and real estate investment trusts, etc.
GROWTH OF FINANCIAL MARKETS:

As every country today is aiming at reaching the status of developed country, the most
important input they require is the investment. Where do they get their investments? Capital Market is
the place where the economy can pool up funds required for their investment needs. In the modern
scenario of globalization Capital Market plays a vital role in any economy. The strong presence of
Capital Market resembles the strength of the economy.
The term capital market refers to only stock markets as per the common man's ideology, but the capital
markets have a much broader sense. Where as in global scenario, it consists of various markets such as:
1.Government securities market
2. Municipal bond market
3. Corporate debt market
4. Stock market
5. Depository receipts market
6. Mortagate and asset-backed securities market
7. Financial derivates market
8. Foreign exchange market
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ROLE OF CAPITAL MARKETS:
Capital markets play a vital role in Indian economy, the growth of capital markets will be
helpful in raising the per-capita income of the individuals, decrease the levels of un-employment, and
thus reducing the number of people who lie below the poverty line. With the increasing awareness in
the people they start investing in capital markets with long-term orientations, which would provide
capital inflows to the sectors requiring financial assistance.
DEVELOPMENT PROCESS OF FINANCIAL MARKET:

In India, many of the above markets are not developed to the required extent, and some does
not even exist.
A capital market can provide huge impetus to the development of any economy .so, it can be
said that the growth and sustainability of capital markets plays an important role towards the
development of the economy.
It is being observed that huge fluctuations are happening in Indian capital market in recent
past, but with the help of proper mechanism, which is being observed in India and after examining
various risk factors involved in capital markets, we attempt to say that the growth which has been
observed in Indian capital market in recent past is a realty, but not a myth.
In India the capital market consists of

1. Stock market
2. Bonds, convertible debentures and debt market
3. New issue market and merchant banking
There are no special markets for the trading of municipal bonds, asset backed securities,
foreign exchange market and depository receipts market.
Right from the independence, thanks to steps initiated by the Indian government especially
after the post liberalization era. A huge growth has been observed in the aspects of quality and quantity.
Huge increase has been observed in the volumes of trade.
CONCLUSION:
A steady and growing market size, reliable business community, high levels of intellectual
manpower, technological expertise and a dedicated reform process that has brought about impressive
economic liberalization, has made India a very attractive destination for investments in capital markets.
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A STUDY ON BEHAVIOURAL MAPPING OF INDIVIDUAL INVESTORS
Dr.Anuvalentina
Mrs V.Eveline Vijaya, Asst professor, Nirmala college for women ,Redfields Coimbatore
Mrs Lydia.H.Swamy, Asst professor, Nirmala college for women ,Redfields Coimbatore
INTRODUCTION
Investment or investing is a term with several closely-related meanings in business
management, finance and economics, related to saving or deferring consumption. Investing is the
active redirecting resources from being consumed today so that they may create benefits in the future;
the use of assets to earn income or profit.
An investment is the choice by the individual to risk his savings with the hope of gain. Rather
than store the good produced, or its money equivalent, the investor chooses to use that good either to
create a durable consumer or producer of good, or to lend the original saved good to another in
exchange for either interest or a share of the profits.
PRIMARY OBJECTIVES
To study the behavioral aspect of individual investor towards various investment avenues.
SECONDARY OBJECTIVES
To study the demographic factors of investors which affects the investment.
To analyze the factors that induces the investors to invest in various investment avenues.
To find out the attitude of investors in taking various decisions regarding their investments.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
DESCRIPTIVE RESEARCH DESIGN: It is used for formulating a problem for precise

investigation into the research type.
POPULATION:
The population of this research consists of the various investors of the Coimbatore city who
invest in different investment avenues.
SAMPLING TECHNIQUES
The sampling technique used is Non-probability sampling.
NON-PROBABILITY SAMPLING
The technique selected in this project is Convenience Sampling. In this, the researcher can
choose the fraction of population to be investigated according to his or her convenience.
SAMPLE SIZE
Sample size for this project is 200 and all the details are collected from people who are
interested in saving their income.
TECHNIQUES OF DATA COLLECTION

Questionnaire consisting of 20 questions-all are close ended questions.
TOOLS USED FOR DATA ANALYSIS

The tools used for data analysis are:
266
Percentage analysis method
Chi-Square analysis
Cross table tabulation method
ANALYSIS AND INTERPRETATION
TABLE 1- AGE GROUP

NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
18 - 25 32 16.00%
26 35 19 9.50%
36 45 41 20.50%
46 55 35 17.50%
Above 55 73 36.50%
TOTAL 200 100.00%
From the above table it is evident, that 36.50%of the respondents are of the age group Above
55 years , 20.50% of them, are of the age group 36-45 years, 17.50% and 16% are of the age group of
46-55years and 18-25years respectively, and the remaining 9.50% are the age group 26-35years.
Hence it can be concluded that majority of the respondents are of the age group of 36years and
above.
TABLE :2 - GENDER
NUMBER OF
RESPONDENTS
MALE 147 73.50%
FEMALE 53 26.50%
TOTAL 200 100.00%
From the table above, it can be understood, that 73.50% of the respondents are male and the
remaining 26.50% of them are women.
Hence, it is concluded that majority of the respondents are MEN
Thus, it is concluded that majority of the respondents are doing business on their own
capacity.
TABLE-3 - ANNUAL INCOME

NUMBER OF
RESPONDENTS
RS.3 LAKHS AND BELOW 39 19.50%
ABOVE RS.3LAKHS AND UPTO RS.5
62 31.00%
LAKHS
ABOVE RS.5LAKHS AND UPTO RS.7
56 28.00%
LAKHS
ABOVE RS.7LAKHS 43 21.50%
TOTAL 200 100.00%
From the above table it is evident that 31.00% of the respondents fall under the income group
between Rs.3lakhs Rs.5lakhs, 28.00% of them fall under income group Rs.5lakhs Rs.7lakhs,
21.50% fall under above Rs.7Lakhs and 19.50% fall under below Rs.3lakhs per annum.
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Hence it can be concluded that maximum of the respondents fall under the income group
between Rs.3lakhs Rs.5lakhs per annum.
TABLE-4 - TENURE OF INVESTMENT

NUMBER OF
RESPONDENTS
LESS THAN SIX MONTHS 35 17.50%
ABOVE SIX MONTHS AND UPTO
61 30.50%
ONE YEAR
ABOVE ONE YEAR AND UPTO
67 33.50%
THREE YEARS
ABOVE THREE YEARS 37 18.50%
TOTAL 200 100.00%
From the above table it is evident that 33.50% of the respondents fall under the tenure of
above one year and up to 3years, 30.50% of them fall under the category of above six months and upto
one year, 18.50% of the category are above three years and the rest 17.50% falls under the category of
less than six months.
Hence it can be concluded that maximum of the respondents fall under the Investment Tenure
of Above One Year and up to Three Years.
TABLE:5 - INVESTMENT OUT OF ANNUAL INCOME

NUMBER OF
RESPONDENTS
BELOW 10% 74 37.00%
ABOVE 10% AND BELOW 20% 38 19.00%
ABOVE 20% AND BELOW 30% 50 25.00%
ABOVE 30% 38 19.00%
TOTAL 200 100.00%
From the above table it is evident that 37.00% of the respondents fall under the the category of
below 10% investment of their annual income, 25% fall under the category of 20% - below 30% and
38% fall equally under the other category of Investing above 10% and below 20% and above 30%
respectively.
TABLE-6 - VARIOUS INVESTMENT AVENUES THE RESPONDENTS HAVE INVESTED IN
PARTICULARS NUMBER OF PERCENTAGE

RESPONSES
GOLD 100 26.45%
SHARES 83 21.89%
MUTUAL FUNDS 75 19.78%
BONDS 24 6.33%
REAL ESTATE 55 14.51%
OTHERS 42 11.121%
TOTAL 379 100%
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From the above table, it can be understood that 26.45% of the responses are towards
investment in Gold, 21.89% in Shares, 19.78% in Mutual funds, 14.51% in Real estate, 11.121% in
other forms and 6.33% in Bonds.
Hence, majority of the responses are towards Gold as their preferred investment avenue.
TABLE:7 COMPANY TYPE

RESPONDENTS
BLUE CHIP 104 52%
SMALL CHIP 36 18%
MID CAP 60 30%
TOTAL 200 100%
From the above table, it can be inferred that 52% of the respondents prefer to invest in Blue
Chip Companies, 30% prefer Mid Cap Companies and 18% prefer Small Cap Companies.
Therefore, Blue Chip Companies are preferred by majority of the respondents.

Therefore, an expected return of 9-12% is chosen as the most preferable by most of the respondents.
TABLE: 8 RESPONDENTS REACTION, WHEN THEIR INVESTMENT DECREASES IN

VALUE
RESPONDENTS
SELL IMMEDIATELY 59 29.5%
WAIT 110 55%
TAKE ADVANTAGE 40 20%
TOTAL 200 100%
From the above table, we infer that the reactions of the respondents, when the investment
decreases in value, that 55% of them are willing to wait for the market conditions to improve, while
29.5% are ready to sell immediately to avoid further loss, and 20% of them will to take advantage and
invest more.
Hence, it is concluded that majority of respondents prefer to wait for the market conditions to
improve.
TABLE 9 CROSS TABLE BETWEEN AVENUES AND EXPECTED RETURNS

AVENUES RETURNS 0-3% 3-5% 5-7% 7-9% 9-12%
GOLD 3 1 5 4 11
SHARES 3 12 16 14 54
BONDS 4 5 7 11 53
MUTUAL FUNDS 5 8 6 11 42
REAL ESTATE 1 1 8 10 34
OTHERS 0 0 4 11 17
From the above table it is inferred that the majority of the respondents expect 9-12% of returns
irrespective of their investment in any investment avenues.
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INCOME I II III
<2 Lakhs GOLD SHARES MUTUAL FUNDS

2-5 Lakhs GOLD SHARES MUTUAL FUNDS
5-8 Lakhs GOLD REAL ESTATE MUTUAL FUNDS
>8 Lakhs REAL ESTATE GOLD SHARES
From the above table it is evident that income group below 5 lakhs invest more in Gold and
shares and above 5 lakhs invest more in Real Estate and Gold.
From the above table it can be inferred that most of the respondents both men and women
prefer to invest more in gold but men equally invest in shares.
I) HYPOTHESIS TESTING - Friedman Test
PREFERENCE OF INVESTMENT SCHEMES

H0 : There is no significant difference in the preference of the investment schemes
H1 : There is a significant difference in the preference of the investment schemes
Descriptive Statistics
N Minimum Maximum Mean Std.Deviation

Shares 200 1 7 4.19 1.575
Bond 200 1 7 6.08 1.346
Bank Deposit 200 1 7 2.68 1.267
Mutual Fund 200 1 7 4.65 1.424
Real Estate 200 1 6 3.04 1.090
Gold 200 1 4 1.51 0.743
Government Securities 200 1 7 5.84 1.167
TEST STATISTICS
N 200
CHI-SQUARE
DF
ASYMP.SIG
Test Statisticsa
N 75
Chi-Square 308.664
df 7
Asymp. Sig. .000
Mean Ranking For Investment Schemes
Particulars Mean Rank Std. Deviation Ranking
Gold 1.51 0.743 1
Bank Deposit 2.68 1.267 2
Real Estate 3.04 1.090 3
Shares 4.19 1.575 4
Mutual Funds 4.65 1.424 5
Government Securities 5.84 1.167 6
Bond 6.08 1.346 7
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INFERENCE
Since the Asymp. Significance value is less than 0.05 we accept the alternative hypothesis, so
we conclude there is a difference in the preference of the investment schemes. Based on the investors
ranking made from 6 to 1 We conclude that they prefer the Growth related, Income Related and Tax
Saving scheme rather than other schemes.
FACTORS INFLUENCING THE PREFERENCE IN INVESTMENT SCHEMES
H0 : There is no significant difference in the factors influencing the choice of the investment
schemes
H1 : There is no significant difference in the factors influencing the choice of the investment
schemes
Descriptive Statistics
N Mean Std. Deviation Minimum Maximum
Safety 75 4.9333 1.79589 2.00 8.00
Flexibility 75 4.6133 1.32434 3.00 8.00
capital 75 5.2933 1.73807 1.00 8.00
Taxbenefit 75 5.9333 1.22290 4.00 8.00
Liquidity 75 4.4933 1.95471 1.00 8.00
Return 75 6.8267 1.31902 4.00 8.00
Professionalmanagement 75 1.6533 .58108 1.00 3.00
Diversificationbenefit 75 1.8000 1.43320 1.00 8.00
Test Statisticsa
N 75
Chi-Square 308.664
Df 7
Asymp. Sig. .000
a. Friedman Test
TABLE: Mean Ranking for the factors influencing the choice of investor
Particulars Mean Std. Deviation Mean Rank
Safety 4.93 1.80 4
Flexibility 4.61 1.32 5
Capital Appreciation 5.29 1.74 3
Tax Benefit 5.93 1.22 2
Liquidity 4.49 1.95 6
Good Return 6.83 1.32 1
Professional Management 1.65 0.58 8
Diversification Benefit 1.80 1.43 7
INFERENCE
Since the Asymp. Significance value is less than 0.05 we accept the alternative hypothesis, so
we conclude there is a difference in the preference of the investment schemes. Based on the investors
ranking made from 8 to 1 we conclude that they choose the schemes based on important factors like
good return, Tax benefits, and capital Appreciation.
CONCLUSION
The study on the investors awareness and the factors influencing their investment decisions
has helped in understand the perspectives of the investors in their choice of investment. It can also be
concluded that in the current economic scenario people are ready to accept only lower risks inspite of
them expecting high returns. And investment in Gold has topped their priority list. Investors are very
careful about their investments, hence; wait patiently for market conditions to improve.
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TALENT MANAGEMENT
K.Srivignesh Kumar, Assistant-Professor Department of Management(U.G) Sree Saraswathi
Thyagaraja Colege Thippampati, Pollachi
Talent management refers to the process of developing and integrating new workers, developing and
keeping current workers and attracting highly skilled workers to work for your company. Talent
management] in this context does not refer to the management of entertainers. The term was coined by
David Watkins of Softscape published in a article in 1998
Talent management is a process that emerged in the 1990s and continues to be adopted, as more
companies come to realize that their employees talents and skills drive their business success. These
companies develop plans and processes to track and manage their employee talent, including the
following:
Attracting and recruiting qualified candidates with competitive backgrounds
Managing and defining competitive salaries
Training and development opportunities
Performance management processes
Retention programs
Promotion and transitioning
Talent management is also known as HCM (Human Capital Management), HRIS (HR Information
Systems) or HRMS (HR Management Systems), and HR Modules.Companies that are engaged in
talent management (human capital management) are strategic and deliberate in how they source,
attract, select, train, develop, retain, promote, and move employees through the organization. This term
also incorporates how companies drive performance at the individual level (performance management).
The term talent management means different things to different people. To some it is about the
management of high-worth individuals or "the talented" whilst to others it is about how talent is
managed generally - i.e. on the assumption that all people have talent which should be identified and
liberated.
Talent Management
IT TAKES Talent to spot Talent! A tone deaf will never be able to appreciate the music of
maestros. Only a seasoned jeweler would know that all that glitters is not real! And, only those who
can recognise the worth of a diamond can value it, for others it's just a stone! Talent is doing easily
what others find difficult.
In an organisation, there is nothing more crucial than fitting the right employee in the right
position. Or else you would be trying to fit a square peg in a round hole. When people do jobs that just
don't suit their liking, inclination or temperament, the results, or rather the lack of them will be
disastrously obvious. Low productivity, dissatisfaction, low morale, absenteeism and other negative
behaviour will become typical till the employee is shown the door. Or perhaps, there is another option -
Talent Management. Talent management implies recognising a person's inherent skills, traits,
personality and offering him a matching job. Every person has a unique talent that suits a particular job
profile and any other position will cause discomfort.
It is the job of the Management, particularly the HR Department, to place candidates with
prudence and caution. A wrong fit will result in further hiring, re-training and other wasteful activities.
While there is no magic formula to manage talent, the trick is to locate it and encourage it.
Talent Management is beneficial to both the organisation and the employees. The organisation
benefits from: Increased productivity and capability; a better linkage between individuals' efforts and
business goals; commitment of valued employees; reduced turnover; increased bench strength and a
better fit between people's jobs and skills. Employees benefit from: Higher motivation and
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commitment; career development; increased knowledge about and contribution to company goals;
sustained motivation and job satisfaction.
So, how does an organisation effectively manage talent?
Recognise talent: Notice what do employees do in their free time and find out their interests. Try to
discover their strengths and interests. Also, encourage them to discover their own latent talents. For
instance, if an employee in the operations department convincingly explains why he thinks he's right
even when he's wrong, consider moving him to sales!
Attracting Talent: Good companies create a strong brand identity with their customers and then
deliver on that promise. Great employment brands do the same, with quantifiable and qualitative
results. As a result, the right people choose to join the organisation.
Selecting Talent: Management should implement proven talent selection systems and tools to create
profiles of the right people based on the competencies of high performers. It's not simply a matter of
finding the "best and the brightest," it's about creating the right fit - both for today and tomorrow.
Retaining Talent: In the current climate of change, it's critical to hold onto the key people. These are
the people who will lead the organisation to future success, and you can't afford to lose them.
The cost of replacing a valued employee is enormous. Organisations need to promote diversity and
design strategies to retain people, reward high performance and provide opportunities for development.
Today's Top 10 Talent-Management Challenges

1. Attracting and retaining enough employees at all levels to meet the needs of organic and inorganic
growth.
2. Creating a value proposition that appeals to multiple generations
3. Developing a robust leadership pipeline.
4. Rounding out the capabilities of hires who lack the breadth of necessary for global leadership.
5. Transferring key knowledge and relationships.
6. Stemming the exodus of Gen X'ers from corporate life
7. Redesigning talent management practices to attract and retain Gen Y's
8. Creating a workplace that is open to Boomers in their "second careers
9. Overcoming a "norm" of short tenure and frequent movement.
10. Enlisting executives who don't appreciate the challenge.
Defining the Talent Management Process

Organizations are made up of people: people creating value through proven business
processes, innovation, customer service, sales, and many other important activities. As an organization
strives to meet its business goals, it must make sure that it has a continuous and integrated process for
recruiting, training, managing, supporting, and compensating these people. The following chart shows
the complete process:
1. Workforce Planning: Integrated with the business plan, this process establishes workforce plans,
hiring plans, compensation budgets, and hiring targets for the year.
2. Recruiting: Through an integrated process of recruiting, assessment, evaluation, and hiring the
business brings people into the organization.
3. Onboarding: The organization must train and enable employees to become productive and
integrated into the company more quickly.
4. Performance Management: by using the business plan, the organization establishes processes to
measure and manage employees. This is a complex process in itself, which we describe in detail in our
new research High Impact Performance Management.
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5. Training and Performance Support: of course this is a critically important function. Here we
provide learning and development programs to all levels of the organization. As we describe in the
Death of the Corporate University, this function itself is evolving into a continuous support function.
Therefore the Business must Lead the Solution Therefore, if you want the talent management solution
to be effective and well-adopted throughout your organization, it must be led by a line executive (not
HR). While HR is clearly the subject-matter and process expert (we think of HR as the steward, not
the owner), an HR-driven approach usually creates a high level of compliance but a low level of true
adoption.
Consider the following data: this data, taken from our High Impact Talent Management
research (which analyzed more than 1 million different elements of strategy and impact) clearly shows
that business-driven solutions have much greater impact than HR-driven initiatives.
Figure 2: Impact of Governance in Talent Management
Is Talent Management too Important to Delegate to HR?

In a sense, the answer is yes. It is too important to be left to HR - while HR must steward
the process and implement much of the solution elements, ultimately talent management solutions must
be business-driven. Our research details the process for developing and governing these solutions, and
also helps you identify the best-practices for such solutions.
Not Sure How to Define your Talent Management Strategy?

In our Talent Management Framework, we describe how organizations can integrate their
people processes (sourcing & recruiting, performance management, succession planning, leadership
development, learning & development, and succession planning) to address their urgent talent
challenges. Read and listen to us describe this framework to help you get started.
CONCLUSION
Talent challenges exist in the context of the underlying business strategy. It is because the
business is growing (or shrinking) that a certain skills or talent gap exists. It is because of the
companys expansion into a new market that new managers are needed. If you, as an HR or L&D
manager do not understand this underlying business strategy, you cannot possibly hope to design,
implement, and manage a process to solve it.2. The detailed solution to these problems is unique to
your organization, but can leverage best practices. You cannot buy a book on talent management to
solve these problems. There is no textbook answer to the problem of hiring more engineers, for
example. At Raytheon, the problem is manifest by a huge increase in US Federal contracts which
demand US citizens. At NetworkAppliance the problem is manifest by hyper growth and the need to
hire customer-facing engineers that understand the network storage industry.
BIBLIOGRAPHY
1. www.businessweek.com/managing/content/jun2008/
2. http://bersin.wordpress.com/2007/05/11/talent-management-too-important-to-be-delegated-to-hr/
3. http://en.wikipedia.org/wiki/Talent_management
4. http://www.hinduonnet.com/jobs/
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LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING
S. Muthu Kaleeswaran, Student, K.Ramakrishnan College of Engineering & V.Sruthi, Student, K.
Ramakrishnan College of Engineering
Introduction
Leadership development and Succession Planning are considered to be the most important
thing in achieving excellence in any organization. But the fact is that these are not managed in a proper
way which in turn creates imperfection in the job. Here we are going to suggest some techniques to
achieve perfection in managing these two.
Leadership
Leadership can be said as an art which is born out of the understanding of the needs. The
leader is the one who leads the team. The qualities which are innate within the leader, but are unseen to
the working environment unless it is explored by the inner soul to the outer world are called Leadership
qualities. These leadership qualities are considered to be the most powerful source of an organization in
achieving perfection. The Success of any country depends on Leaders. Likewise success of any
organization depends on successful leader. This leader leads his/her team towards his thoughts for
completing the tasks assigned to them. A leader always represents his/her team in front of the higher
officials. When perfection is considered, only the leader strikes into the mind.
Leadership Development
It is the process of training the leaders for a high standard so as to increase the overall
performance. This training is just given to wax the qualities within the leader. This training includes
developing the skills like integrity, dedication of purpose, selflessness, knowledge, skill, implacability
as well as determination not to accept failure. Emotional intelligence training is also given here since
the leader needs to control his emotions when he communicates within the organization as well as to
the business partners. In most of the leading industries leadership development is the main reason for
their success.
Need of Leadership Development

This is essential for developing the inherent skills within the leader. This also increases the
team performance. To make the leader tackle any situation. To create the fittest leader. To enhance the
opportunities for skillful employees. To simplify the process of monitoring in an organization. To
analyze the performance of the team. For successful completion of tasks assigned to the team.
Effective and Ineffective Leadership

An effective leader and ineffective leader have many similar qualities. But the only difference
is that an ineffective leader does not maintain peaceful relationship with all the employees.
Transformational Leadership
This involves the transformation of leadership into succession planning.
Succession Planning
Failing to plan is planning to fail. Any goal cannot be reached within a day. We have to plan
well for completion of any work. This plan may be a simple task but executing the plan is a very
difficult task. We need to check the execution of plan each and every time. Success is the complement
of Hard Work. Hence hard work is also required for achieving the goal. Super Motivation is required
here. Because Motivation makes a better way to achieve the goal in a short time.
Need of Succession Planning

Having this process in place is vital to the success of the organization because the individuals
identified in the plan will eventually be responsible for ensuring the company is able to tackle future
challenges. These "high potential" candidates must be carefully selected and then provided training and
development that gives them skills and competencies needed for tomorrow's business environment.
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Another reason its important is because these high potentials will one day become the leaders
of the Company. This is why their development needs to incorporate a broad range of learning
opportunities in your organization. The individuals should also be exposed to as much of the working
environment as possible so that they gain a good understanding of what the company requires to
remain successful.
Succession planning is one of those initiatives that many companies don't find the time to start
until it's too late - if you don't address succession planning now your organization may end up facing
the burden in the middle of a crisis.
Finally, organizations that understand the need to manage the development of their high
performers are a step ahead of their competitors! The effort required to establish a development
program for future leaders is worthwhile because it creates a motivated and capable group of
employees that are ready to move forward in the organization when the need arises.
CONCLUSION
By this way if we have a strong leader with leadership development and all the employees
with succession planning then the organization will undoubtedly flourish well though it is a very small
one.
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AN ANALYSIS ON LEADERSHIP BEHAVIOUR AND ITS EFFECTIVENESS
IN INDIAN BUSINESS ORGANISATIONS
WITH SPECIAL REFERENCE TO TAMIL NADU
T. Prakash, Ph.D. Research Scholar, Department of Economcs, Urmu Dhanalakshmi College
Trichy 620 019,
Dr. S. Mookiah, Centre for the Study of Social Exclusion and Inclusive Policy, Manonmaniam
Sundaranar University, Tirunelveli 627 012
INTRODUCTION
Leadership is an attempt to influence people, individually and in groups, for whatever reason.
Influence and leadership may be used interchangeably. Not all leadership behavior is directed toward
accomplishing organizational goals. In fact, many times when you are trying to influence someone else,
you are not even part of an organization. For example, when you are trying to get some friends to go
someplace with you, you are not engaging in management, but you are certainly attempting leadership.
If they agree to go, you are an effective leader but not an effective manager. Even within an
organizational setting, managers may engage in leadership rather than management if they are trying to
accomplish personal goals, not organizational ones.
IMPORTANCE OF LEADERSHIP
I do not want my house to be walled in on all sides and my windows to be stuffed. I want the
cultures of all the lands to be blown about my house as freely as possible. but I refuse to be blown off
my feet by any. - Mohandas Karamchand Gandhi
In just the way that M.K. Gandhi and other broad minded political leaders have embraced all
world cultures business leaders are doing so too.
An attempt by an individual to have some effect on the behavior of another is called attempted
leadership. This attempted leadership can be successful or unsuccessful in producing the desired
response. A basic responsibility of managers in any type of organization is to get work done, with and
through people, so their success is measured by the output or productivity of the group they lead. With
that thought in mind, Bernard M. Bass suggested a clear distinction between, successful and effective
leadership or management.
REVIEW OF LITERATURE
Since the publication of two classical studies on leadership, one by Michigan State University
(Katz et al., 1950) and the other by Ohio State University (Stogdill & Coons, 1957), the interest in
leadership style and its consequences has grown by leaps and bounds. There are numerous studies on
the behaviour of leaders (e.g. Katz & Kahn, 1951; Fleishman & Harris, 1962; Zulaiha, 1993) as
well as situational determinants of leader's behaviour (e.g. Fieldler, 1967; Mintzberg, 1973;
Balkheyour, 1982; Bass, 1990). In addition, researchers have also examined the variations in
leadership styles based on differences in cultures and ethic background (e.g. Yang, 1977; Everett, et
al., 1984; Kang & Saiyadain, 1994; Asma Abdullah, 1996; Carney, 1998).
Most of these studies leave the impression that leadership works one way the leader influences
the members. Of late there is growing evidence to suggest that leader's behaviour, to an extent is
influenced by subordinates' perspective and perceptions. Effectiveness of leadership behaviour may
perhaps be an interactions position influenced by members' expectations. A recent study concluded that
leaders would be perceived most effective by their members and succeed in exerting great influence on
them when they behave in ways closely matched with the needs and values of members (Baron, 1986).
In a more recent article, Bennis (1989) suggested that members make good leaders good. Quoting
several examples of significant leaders in American history, he feels persuaded to accept the under-
appreciated importance of effective members lrTmqulding the styles of their leaders.
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Research evidence in this area is rather scanty. Perhaps the first such attempt was made by
Brown (1964). Respondents were asked to identify characteristics of their "poorest boss", examples of
their most "bizzare" behaviour and their effect on the performance of the members. His results
indicated that members identified 30 characteristics of poor bosses grouped in five categories
(organisational performance, decision making skills, communication skill, relationship with others and
personal characteristics). They also identified 18 bizzare behaviours and 19 effects on members.

The effectiveness of leadership in selected Business Organisations in Tamil Nadu. feedback
from members which in turn provides them a sense of codetermination and enhances members'
perception of leader's effectiveness. Members also expect leaders to be loyal to themselves and
organisation (Berliner, 1979). Alert, self assured and interpersonally competent leaders set examples
for members to follow. The female respondents who perceived stronger relations between the variables
than their male counterparts were supervisors who worked closely with their immediate bosses.
Perhaps the proximity helped them to make more realistic judgements about their leaders.
Leaders are increasingly dependent on their members for a variety of activities. Silence is the
one answer that leaders should refuse to accept. While for members it is hard to speak up or disagree
with the leaders, effective leaders encourage openness and even dissent. They understand the
momentary discomfort on being "told" or made to realize that they are wrong. But it is offset by the
fact that reflective back-talk increases leader's ability to make good decisions. Members who speak up
and leaders who listen to them are an unbeatable combination (Bennis, 1989). The ultimate irony is
that, by and large, members who look for effective leadership behaviours show precisely the kind of
behaviour that effective leadership is made of.
SCOPE OF THE STUDY

In the Globalisation era, the problem of maintaining cordial relationship between employee
and employer is a different task. In the industrial arena, the problems and disputes are multi
dimensional one. The proposed work will be dealt in the lines of leadership behaviour and its
effectiveness in the selected Business Organisations in Tamil Nadu.
Though there were many earlier have been carried out in the similar topics but no such an
effort would be carried out on the effectiveness of leaders will context. so the proposed study will be an
immense importance in the sense of analysing.
OBJECTIVES
The proposed study on leadership behaviour and its effectiveness in Tamil Nadu tries to find out
the following major of objectives.
To deal the various factors of leadership behaviour in this area.

1. To fid out the organisational performance decision making skill communication skill and other
aspects.
2. To examine the factors responsible for effective leadership in Tamil Nadu among the selected
industry.
3. To throw lights the relationship between the supervisors and employees in the selected
respondent.
4. To explore further possible avenues of increasing the effectiveness of leadership among the
various organisations.
METHODOLOGY
Questionnaire
Since the focus of the study is to be on the perceptions of the members an attempt will be
made to identity key areas of leaders behaviour. As many as 72 employees with clearly defined leaders
will be asked to indicate 5 key areas that they felt were most important for effective leader behaviour.
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This exercise yielded 23 areas of which decision making, communication skill, organisational
performance and personal characteristics topped the list with the rest trailing far behind.
Leader behaviour on these four areas will be was measured by adapting the general scheme
provided by Brown (1964). Fifteen statements will be developed to cover the four areas
(organisational performance = 6, decision making -- 3, communication skill = 3 and personal
characteristics = 3). The respondents will be asked to read these statements keeping their immediate
supervisors in mind and show their agreement/disagreement with them on a six point scale (strongly
agree = 6, agree = 5, agree a little = 4, disagree a little = 3, disagree = 2, strongly disagree =1).
Leadership effectiveness was measured by adopting the scale developed by

Cummings (1967). It consisted of five statements based on five effectiveness criteria (Planning,
Human Consideration, Originality, Overall Effectiveness as perceived by respondents and
Organisation). The respondents will be asked to rate their immediate supervisors on these statements
using a six-point scale (very high = 6, high = 5, somewhat high = 4, somewhat low = 3, low = 2, very
low =1). Statements will be presented in Exhibit 1.
SAMPLE
Sample will be consisted of employees working in a multinational organisation in Tamil
Nadu. The major criteria in the choice of sample consisted of each respondent having a structurally
defined leader to whom he/she responded for both functional and administrative purposes. The
questionnaires will be distributed to 250 respondents. Out of which 60% of the respondent will
constitute leaders from production oriented organizations and 40% leaders from service oriented
organisation.
Data Analysis
After collection of data, 60% from the production oriented organization and 40% from the
service oriented organizations, the gathered information through the questionnaire will be grouped
according to the organization. In the production oriented it will be grouped it to, textiles, automobiles,
cement, Fabrication, Merchant Establishment and etc. In the service oriented in to Banking insurance,
Software, Corporate Hospitals and etc. Then to condense data SPSS (Statistical Package on Social
Science) is also used to analysis and interpretation of data ANOVA test, causality test, Durbin-
Wetson (D-W Statistic) Granger (or) Sims tests will be used wherever it is necessary. On the basis of
these observations certain conclusions and findings will be drawn. To interpret and analyse the data
prominent statistical tools will be used. ANOVA (Two way classification models) within
blocks/between block.
CONCLUSION
There is growing evidence to suggest that leader's behaviour is influenced by the perceptions
and expectations of the subordinates. The results of this study show that if subordinates perceive their
leaders effective in such areas as organisational effectiveness, decision making and communication
skills and personal characteristics, they also perceive them as effective leaders. The implication for
stich a conclusion is clear. In order to maintain and /or enhance the overall effectiveness of the
organisation, leaders must get support from all the constituents, particularly from their subordinates.
These subordinate, in turn, would make a good leader good. Training of subordinates, maintaining high
level of motivation and morale and exploiting their full competencies are potential sources for not only
getting high performance but also making them to expect and receive superior output from their
leaders. These are mutually reinforcing forces that organisations need to survive in today's turbulent
environment.
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REFERENCES
1. Ashford, J-A. and Tsui, A.S. (1991), "Self Regulation for Managerial Effectiveness: The Role of
Active Feedback Seeking", Academy of Management journal, 34(2), 251-280.
2. Asma Abdullah (1996), Going Glocal, Malaysian Institute of Management, Kuala Lumpur.
3. Balkheyour, A.A. (1982), Effective Administrative Leadership, Unpublished Doctoral
Dissertation, Glaremont Graduate School.
4. Baron, R.A. (1986), Behaviour in Organisations, Allyn and Bacon, Boston.
5. Bass, B.M- (1990), Bass and Stodgiest Handbook of Leadership: Theory, Research and
Managerial Application (3rd Ed.), Free Press, New York.
6. Bennis, W. (1989), "Followers Make Good Leaders Good", The New York Times, December, 31.
7. Berliner, W.M. (1979), Managerial and Supervisory Practices: Cases and Principles, Homewood,
II.: Irwin.
8. Brown, D-S. (1964), "Subordinates' View of Ineffective Executive Behaviour," Academy of
Management Journal, 7(4), 288-299.
9. Buono, A-F. and Bowditch, J.L. (1989), The Human Side of Mergers and Acquisitions: Managing
Collision Between People, Culture and Organisations, Jossey-Bass, San Francisco.
10. Cameron, K. (1991), "Best Practices in White-collar Downsizing -Managing Contradictions",
Academy of Management Executives, 5(3), 57-73.
11. Carney, M. (1998), "A Management Capacity Constraint? Obstacles to the Development of
Oversees Chinese Family Business", Asia Pacific journal of Management, 15,137-162.
12. Cummings, L.L. (1967), "Managerial Effectiveness II: Performance at the Graduate Student
Level", Academy of Management journal, 10(2). 145-160.
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CROSS CULTURAL ENVIRONMENT TRAINING
Mr.S.Theodore Manova, Asst.Prof, Selvam College of Technology
Namakkal
ABSTRACT
Cross cultural training is now becoming an integral part of staff training as managers and HR
staff wants to ensure that effective communication is developed between employees. By educating staff
through cross cultural training courses, such as cross cultural team building and communication
programs, companies and organizations are becoming more competitive in the global marketplace as
cross cultural synergy in the workplace grows.
It is a fairly broad term that covers a variety of different training programs. Each training
program will have its own focus and will address the certain needs of a particular client group. Cross
cultural awareness training has a number of applications. Its main objective is to introduce, analyze and
constructively tackle the different manifestations of culture in the workplace. It essentially deals with
interpersonal interact Cross cultural management training aims to equip management staff with the
knowledge and skills to effectively supervise a multi-cultural staff. Cross cultural awareness training
results in a more convivial and understanding work environment.
Cross cultural training aims to develop awareness between people where a common cultural
framework does not exist. In the business world in particular this manifests in better interpersonal
understanding leading to more effective communication which ultimately results in a more productive
business environment. Cross cultural management training aims to equip management staff with the
knowledge and skills to effectively supervise a multi-cultural staff. Cross cultural awareness training
results in a more convivial and understanding work environment. Cross cultural awareness training
deals with the manifestations of culture in the workplace and has many applications. Its main purpose
is to evaluate and constructively tackle the challenges cross cultural differences can bring to the
workplace. Culture/country specific training is generally aimed at individuals or teams that regularly
visit a foreign country or who frequently interact with overseas clients or colleagues. Such training
usually focuses on areas such as values, morals, ethics, business practices, etiquette, protocol or
negotiation styles with reference to one country.
Key words: Cross Cultural Team Building Training, Cross Cultural Negotiation Training and
Diversity Training and Awareness Training.
INTRODUCTION
Cross cultural is a comparison of a culture with one or more other cultures. The purpose is to
provide detailed information about the development of others in their own cultures and compare this
development across cultures. The comparison looks at not only what is different between the cultures,
but also what is similar or universal among them It always examines the culture from within, viewing
the context of that culture, rather than from outside of the culture. This gives true insight into the
culture and a truer comparison thus broadening ones appreciation of that culture and of your own.
Basically human races came with different background. "Cultural background". The way of doing
things in one culture may not be the way in other culture. What is good in one culture, may be bad in
other culture. Some time the activities are all the same in two different cultures, but two different
meanings, two different interpretations. When person from one cultural background, meet, interact
with, understand and deal with person from other cultural background. That is cross-cultural
management. Some people are in favor of the world is converging, all things are going to be same.
They are right. some people are arguing still the world has divergence. They are also right. dont fight
over this issue. we are smart people. learn how to manage both the convergence and divergence. That is
the key to success.
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I Team Building Training:
The companies and organisations of today consist of staff from the four corners of the globe.
Colleagues work in multi-cultural teams either in the same office or across borders. Issues can and do
arise in areas such as approach to management, expectations, decision making, planning, conflict
resolution and communication styles.
Few people work alone in todays work environment. We all depend on others to get our work
done. We are part of teams, work groups, ad-hoc committees, task forces, crews, etc. Collectively, we
generate ideas, manufacture products, provide services, sell goods and much more. Our ideas and
efforts combined with the ideas and efforts of others result in performance excellence and high quality
products and services. Experience, expertise, adequate physical conditions, technology and the right
tools are just a small part of the big picture. People are assembled into teams and embark on a
discovery process towards achieving a common goal successfully. Team members from various
backgrounds explore each others personalities, strengths, behaviors, as well as work habits. They
identify the vision, goals, values and strategies by which collectively they will complete their task and
exceed expectations.
Cross Cultural Team Building Benefits:

Facilitate the building of interpersonal relationships.
Foster mutual understanding and respect.
Help understand where cross cultural differences lie
Provide solutions, guidelines and techniques to help the team building process.
Efficient time management
Creative and innovative ideas
Employee satisfaction
Improved performance
Higher product/service quality
Reduces waste of resources
Assures clear and concise communication
Encourages higher productivity
Motivates employees
II Cultural Diversity Training

Our Cultural Diversity Training is designed to help companies and organisations with their
multi-cultural diversity issues in the workplace. Courses are primarily aimed at management, HR staff
and/or staff themselves. Courses are tailored to provide either an overview of multi-cultural issues in
the workplace and/or to provide insight into a particular religion, race or nationality.
Cross Cultural Diversity Training Benefits:

Diversity, Relationship and Cross-Cultural training has become an integral part of
organizational development. This dynamic course is designed for all organizations seeking to create or
enhance a meaningful process-driven diversity program that addresses key diversity, interpersonal,
cross-cultural and other organizational challenges.
Bridging the gap between cultured and non-cultured employees, managers, and other personal
relations thus providing more efficiency within the company
Making your company more accessible to other consumer markets
Making your company more consumer-friendly
Creating more business relationships
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Diversity Training utilizes the needs assessment as a proactive tool for the sole purpose of
interpreting the state of an organization in relation to a particular concern. The needs assessment is not
intended to expose or punish the employer/employees. It designs and implements contextualized
training programs highlighting employer objectives, policies and procedures.
Negotiation Training Objectives
* Understanding Types of Negotiation

* Seeing Other Points of View
* Reading Other People
* Defining personal Negotiation Style
* Working with Own Negotiation 'Rules' and Beliefs
* Playing the 'Game' of Negotiation
* Negotiation Upwards and Downwards
IV AWARENESS TRAINING
In an increasingly global marketplace organizations cant afford to neglect the importance of

good communication. Companies that invest in cultural awareness training undoubtedly reap rewards
through effective working relationships, better communication, employee retention and productive
staff. The aim of this training is to increase cross-cultural awareness and improve relationships between
managers and staff based in different countries.
Having a poor understanding of the influence of cross cultural differences in areas such as
management, PR, advertising and negotiations can eventually lead to blunders that can have damaging
consequences
It is crucial for todays business personnel to understand the impact of cross cultural
differences on business, trade and internal company organisation. The success or failure of a company,
venture, merger or acquisition is essentially in the hands of people. If these people are not cross
culturally aware then misunderstandings, offence and a break down in communication can occur.
CONCLUSION
Training in "soft skills" is no longer as undervalued in India as it used to be. Growing numbers
of Indian companies are coming to realize that the ability of their employees to communicate and
interact more effectively is an important competitive factor. American companies in India are also
showing more keenness to develop the business and leadership skills of their Indian employees and to
move gradually from the cheap labor or staff augmentation model to one where the Indian operation is
a value-adding center of excellence.
"Market forces will tend to make Indian professionals and companies who adopt the practices
of American business culture more successful, and they will outcompete their non-adopting
competitors. But while we have seen successful examples of people doing it with very little guidance,
this process can be a long struggle, and good training programs can certainly speed up progress and
alleviate the pain."
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COMPETENCY MAPPING
Mr.A.Jayaseelan, Asst.Prof/M.B.A, Selvam College of Technology, Namakkal
ABSTRACT
Competency mapping is a process through which one assesses and determines ones strengths
as an individual worker and in some cases, as part of an organization. It generally examines two areas:
emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team
structure, leadership, and decision-making. Large organizations frequently employ some form of
competency mapping to understand how to most effectively employ the competencies of strengths of
workers. They may also use competency mapping to analyze the combination of strengths in different
workers to produce the most effective teams and the highest quality work.
Competency mapping also requires some thought, time, and analysis, and some people simply
may not want to do the work involved to sufficiently map competencies. Competency mapping alone
may not produce accurate results unless one is able to detach from the results in analyzing past
successes and failures.
The value of competency mapping and identifying emotional strengths is that many employers
now purposefully screen employees to hire people with specific competencies. They may need to hire
someone who can be an effective time leader or who has demonstrated great active listening skills.
However, competency mapping can ultimately serve the individual who decides to seek employment in
an environment where he or she perhaps can learn new things and be more intellectually challenged.
Being able to list competencies on resumes and address this area with potential employers may help
secure more satisfying work.
This may not resolve issues for the company that initially employed competency mapping,
without making suggested changes. It may find competency mapping has produced dissatisfied workers
or led to a high worker turnover rate.
COMPETENCY MAPPING
What is meant by Competency?
A Competency is an underlying characteristic of a person which enables him /her to deliver
superior performance in a given job, role or a situation.
Competencies are seen mainly as inputs. They consist of clusters of knowledge, attitudes and skills that
affect an individuals ability to perform.
Hayes (1979) - Competencies are generic knowledge motive, trait, social role or a skill of a person
linked to superior performance on the job.
Albanese (1989) - Competencies are personal characteristics that contribute to effective managerial
performance
UNIDO (2002)- A Competency is a set of skills, related knowledge and attributes that allow an
individual to successfully perform a task or an activity within a specific function or job
Behaviour Indicators
A Competency is described in terms of key behaviours that enables recognition of that

competency at the work place.
These behaviors are demonstrated by excellent performers on-the-job much more consistently
than average or poor performers. These characteristics generally follow the 80-20 rule in that they
include the key behaviors that primarily drive excellent performance.
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Example of a Competency
Analytical Thinking
The ability to break problems into component parts and consider or organize parts in a
systematic way; the process of looking for underlying causes or thinking through the consequence of
different courses of action.
Key Behaviour Indicators

Independently researches for information and solutions to issues
Ability to know what needs to be done or find out (research) and take steps to get it done
Ask questions when not sure of what the problem is or to gain more information
Able to identify the underlying or main problem
Shows willingness to experiment with new things
Develops a list of decision making guidelines to help arrive at logical solutions
What is a Competency Model?

A competency model is a valid, observable, and measurable list of the knowledge, skills, and
attributes demonstrated through behavior that results in outstanding performance in a particular work
context.
Typically A competency model includes
o Competency titles
o Definitions of those titles
o Key Behaviour indicators
Competency - Broad Categories

Generic Competencies
Competencies which are considered essential for all employees regardless of their function or
level. - Communication, initiative, listening etc.
Managerial Competencies
Competencies which are considered essential for employees with managerial or supervisory
responsibility in any functional area including directors and senior posts
Technical / Functional
Specific competencies which are considered essential to perform any job in the organisation
within a defined technical or functional area of work. E.g.: Finance, environmental management,etc
Content Analysis
Group behaviours
Match behaviours to competencies using competency dictionary as a guideline
Evolve new set of competencies if any
Match behaviour indicators identified through CIT to the top 10 competencies identified by
the focus group
Review the model and make corrections
CONCLUSION:
Usually, a person will find themselves with strengths in about five to six areas. Sometimes an
area where strengths are not present is worth developing. In other cases, competency mapping can
indicate finding work that is suited to ones strengths, or finding a department at ones current work
where one's strengths or needs as a worker can be exercised.
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Alternately, they may need someone who enjoys taking initiative or someone who is very good at
taking direction. When individuals must seek new jobs, knowing ones competencies can give one a
competitive edge in the job market.
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PERFORMANCE APPRAISAL OF EMPLOYEES
R.Sathya Aarthi., M.B.A., M.phil, Asst.Prof, Vel Tech Ranga Sanku Arts College, Chennai
ABSTRACT
A performance appraisal form can tell more about an organization than other indicators. There
are multifarious forms used by different organizations in assessing performance of their employees. In
the eyes of Human Resources Management practitioners, there could be standard form for performance
appraisal. Job Description, Performance Level, Performance Factors, Appraisers Additional
Comments, Appraisees Feedback are usual elements incorporated into such a standard form. Rating
errors easily emerge among these elements in a performance appraisal form. Just realizing these errors
cannot ensure an effective performance appraisal. A scientific and methodical approach viz. Grid
Approach can generate an error-free performance appraisal and so forth meets the mission of
Performance Management. In an action learning program, the author proceeds with research on the
Performance Management Systems of an organization. He identifies different rating errors committed
by the appraisers therein. A further study on rating errors bring up programmed knowledge of rating
errors. Then, his questioning insight leads to an exploration of any possible remedy. Eventually, the
Author finds the Grid Approach an effective counter-measure against some rating errors.
INTRODUCTION
The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human resources management.
Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was justified.
The process was firmly linked to material outcomes. If an employee's performance was found to be less
than ideal, a cut in pay would follow. On the other hand, if their performance was better than the
supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. If was
felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well. Sometimes this basic system succeeded in getting the results that
were intended; but more often than not, it failed.
Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual),
in which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills development.
By the same token, appraisal results are used to identify the poorer performers who may require some
form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need
to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease
pay.)
Whether this is an appropriate use of performance appraisal - the assignment and justification
of rewards and penalties - is a very uncertain and contentious matter.
Controversy, Controversy
Few issues in management stir up more controversy than performance appraisal.
There are many reputable sources - researchers, management commentators, and
psychometricians - who have expressed doubts about the validity and reliability of the performance
appraisal process. Some have even suggested that the process is so inherently flawed that it may be
impossible to perfect it
287
At the other extreme, there are many strong advocates of performance appraisal. Some view it as
potentially "... the most crucial aspect of organizational life"
Between these two extremes lie various schools of belief. While all endorse the use of
performance appraisal, there are many different opinions on how and when to apply it.
There are those, for instance, who believe that performance appraisal has many important
employee development uses, but scorn any attempt to link the process to reward outcomes - such as pay
rises and promotions.
This group believes that the linkage to reward outcomes reduces or eliminates the
developmental value of appraisals. Rather than an opportunity for constructive review and
encouragement, the reward-linked process is perceived as judgmental, punitive and harrowing.
For example, how many people would gladly admit their work problems if, at the same time,
they knew that their next pay rise or a much-wanted promotion was riding on an appraisal result? Very
likely, in that situation, many people would deny or downplay their weaknesses.
Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.
Such reluctance is not difficult to understand. Appraisers often know their appraises well, and
are typically in a direct subordinate-supervisor relationship. They work together on a daily basis and
may, at times, mix socially. Suggesting that a subordinate needs to brush up on certain work skills is
one thing; giving an appraisal result that has the direct effect of negating a promotion is another. The
result can be resentment and serious morale damage, leading to workplace disruption, soured
relationships and productivity declines.
On the other hand, there is a strong rival argument which claims that performance appraisal
must unequivocally be linked to reward outcomes.
The advocates of this approach say that organizations must have a process by which rewards -
which are not an unlimited resource - may be openly and fairly distributed to those most deserving on
the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations. Performance appraisal -

whatever its practical flaws - is the only process available to help achieve fair, decent and consistent
reward outcomes.
It has also been claimed that appraises themselves are inclined to believe that appraisal results
should be linked directly to reward outcomes - and are suspicious and disappointed when told this is
not the case. Rather than feeling relieved, appraises may suspect that they are not being told the whole
truth, or that the appraisal process is a sham and waste of time.
Review discussions reassure the employees that each one of them has structured opportunities for one
to one interaction with the manager once every two or three months during the year. These
opportunities are important as they provide an important chance for performance monitoring or
development mentoring. The aim of the performance review discussions is to share perceptions, solve
the problem faced during the course of the action, decide on the new goals jointly and provide a
feedback to the employee for the past performance i.e. to look at his strengths and weaknesses and also
help to chart out a career plan for the employee.
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The focus of these performance review discussions should not bet o judge the employees past
performance; rather it should be to motivate the employee to improve his future performance and
reinforce his good behavior.
REFERENCES
Arminio, J., & Creamer, D.G. (2001). What quality supervisors say about quality supervision. College
Student Affairs.
Barr, M.J., and Associates (1993). The handbook of student affairs administration. San Francisco:
Jossey-Bass Publishers.
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TALENT MANAGEMENT
Talent Management professionals like us need good information and insight. It's the basis of good
decision making and risk management.
M.R.Prakash, MBA, M.Phil, Assistant Professor, Vel Tech Ranga Sanku Arts College.Department Of
Management Studies, Chennai.
K.Antony Baskaran, M.Com, M.Phil, Pgdpm, Ph.D, Assistant Professor, Sacred Heart College,
Tirupattur.635601
ABSTRACT
can recognize the worth of a diamond can value it, for others it's just a stone! Talent is doing easily
In an organization, there is nothing more crucial than fitting the right employee in the right
behavior will become typical till the employee is shown the door. Or perhaps, there is another option -
Talent Management.
Talent Management: A conscious, deliberate approach undertaken to attract, develop and retain
people with the aptitude and abilities to meet current and future organizational needs.
Talent management involves individual and organizational development in response to a
changing and complex operating environment. It includes the creation and maintenance of a supportive,
people oriented organization culture.
Talent management implies recognizing a person's inherent skills, traits, personality and
offering him a matching job. Every person has a unique talent that suits a particular job profile and any
other position will cause discomfort.
It is the job of the Management, particularly the HR Department, to place candidates with
prudence and caution. A wrong fit will result in further hiring, re-training and other wasteful activities.
No matter how inspiring the Leaders are, they are only as effective as their team. A team's output is
healthy only if the members are in sync. To achieve such harmony, the key ingredient is "putting the
right people in the right jobs".
While there is no magic formula to manage talent, the trick is to locate it and encourage it.
What is Talent Management?

Talent management is a complex collection of connected HR processes that delivers a simple
fundamental benefit for any organization:
Talent drives performance.

We all know that teams with the best people perform at a higher level. Leading organizations
know that exceptional business performance is driven by superior talent. People are the difference.
Talent management is the strategy.
Analyst research has proven that organizations using talent management strategies and
solutions exhibit higher performance than their direct competitors and the market in general. From
Fortune 100 global enterprise recruiting and performance management to small and medium business
recruiting, leading companies invest in talent management to select the best person for each job
because they know success is powered by the total talent quality of their workforce.
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Talent Management is beneficial to both the organization and the employees. The organization benefits
from: Increased productivity and capability; a better linkage between individuals' efforts and business
goals; commitment of valued employees; reduced turnover; increased bench strength and a better fit
between people's jobs and skills. Employees benefit from: Higher motivation and commitment; career
development increased knowledge about and contribution to company goals; sustained motivation and
job satisfaction.
HOW DOES AN ORGANIZATION EFFECTIVELY MANAGE TALENT?

Recognize talent: Notice what do employees do in their free time and find out their interests.
Try to discover their strengths and interests. Also, encourage them to discover their own latent talents.
For instance, if an employee in the operations department convincingly explains why he thinks he's
right even when he's wrong, consider moving him to sales!
Attracting Talent: Good companies create a strong brand identity with their customers and then deliver
on that promise. Great employment brands do the same, with quantifiable and qualitative results. As a
result, the right people choose to join the organization.
Selecting Talent: Management should implement proven talent selection systems and tools to
create profiles of the right people based on the competencies of high performers. It's not simply a
matter of finding the "best and the brightest," it's about creating the right fit - both for today and
tomorrow.
Retaining Talent: In the current climate of change, it's critical to hold onto the key people. These are
the people who will lead the organization to future success, and you can't afford to lose them.
Retention - developing and implementing practices that reward and support employees.
Employee development - ensuring continuous informal and formal learning and development.
Leadership and "high potential employee" development - specific development programs for
existing and future leaders.
Performance management - specific processes that nurture and support performance, including
feedback/measurement.
Workforce planning - planning for business and general changes, including the older
workforce and current/future skills shortages.
Culture - development of a positive, progressive and high performance "way of operating".
Why Talent Management?

Workforce cost is the largest category of spend for most organizations. Automation and
analysis of your recruiting and hiring processes provides the immediate workforce visibility and
insights you need to significantly improve your bottom line. Performance management provides the
ongoing processes and practices to maintain a stellar workforce.
Today, many organizations are struggling with silos of HR processes and technologies. The
future of talent management is embodied in solutions designed from the ground up to provide business-
centric functionality on a unified talent management platform.
Since nearly all competitive business factors have become commoditized, talent is what
ultimately drives business success and creates value. Leading organizations rely on Taleo solutions and
services to assess, acquire, develop, and align talent with business objectives while significantly
reducing process costs, improving quality of hire, reducing risk, and achieving higher levels of
performance.
Though it may seem intuitive, it is worthwhile to articulate the fundamental significance of

successful talent management practices:
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The key enabler of any organization is talent.
The quality of your people is your last true competitive differentiator.
Talent management requires strong executive support, along with systems and processes all
directed towards having the right talent doing the right work at the right time. Thats when talent truly
drives higher business performance.
REFERENCES
Schneider, C.E., & Beatty, R.W. (1982). What is talent management? In L. Baird, R.W.
Beatty, & C.E. Scneider (eds.) the talent management sourcebook (pp. 4-10). Amherst, MA:
Human Resource Development Press.
Staffing Handbook. http://filebox.vt.edu/users/dgc2/staffinghandbook/ talent management.htm
Swanson, R.A. (1994). Analysis for improving talent: Tools for diagnosing organizations and
documenting workplace expertise. San Francisco, California: Berrett-Koehler Publishers.
University of CA- Berkeley (2004, January). Conducting effective talent management: Tips
for supervisors. Administrator. Berkeley: California: Magna Publications, Inc.
Whetzel, D.L. & Oppler, S.H. (2003). Validation of selection Instruments. Chapter 13 in
Applied measurement methods in industrial psychology. Palo Alto, California: Davies-Black
Publishing.
Whetzel, D.L. & Wheaton, G.R. (1994). Applied measurements methods in industrial
psychology. Palo Alto, California: Davies-Black Publishing.
Winston, R.B., Jr., & Creamer, D.G. (1997). Improving staffing practices in student affairs.
San Francisco: Jossezy-Bass.
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CONFLICT MANAGEMENT AND ITS IMPACT ON ORGANIZATION
DEVELOPMENT
Mr.V.Arunkumar, Assistant Professor, Department of Management Studies, Sudharsan Engineering

College, Pudukottai.
Mr. Ram Achuthan, II-MBA, Sudharsan Engineering College, Pudukottai.
Introduction:
Conflict can be a serious problem in an organization. It can create chaotic conditions that
make it impossible for employees to work together. Conflict also has a positive side. We will explain
the differences between negative and positive conflicts in this paper and provide a guide to understand
how conflicts develop. Conflict means different things to different people. For some, a definition of
conflict involves fighting, war, and trade embargos and so on. For others, it may be a difference in
opinion, perspective or personality.
One party may feel they are in a conflict situation, when the other party feels that they are just
discussing opposing views. A lot depends on our personal "take" of the situation. Conflict normally
involves opposing views on one or more of the following:
Till the early 1980s, the Indian passenger car industry offered limited choice to the customers,
with only two popular models in the form of Hindustan Motors' (HM) Ambassador and Premier
Automobiles' (PAL) Padmini. The government not only controlled the price mechanism in the industry,
but the entry of foreign players was also strictly regulated.
However, the scenario changed in 1981, when the Go I itself entered the car business by
establishing MUL by acquiring the assets of Maruti Ltd. In October 1982, the GoI signed a licensing
and joint venture agreement with SMC where in Suzuki acquired the 26% share of the equity.7 Suzuki's
history dates back to 1903, when Michio Suzuki founded Suzuki Loom Works in Hamamatsu in
Shizuoka, Japan. For the first 30 years, company focused on the development and production of
complex machines for Japan's silk industry. In 1937, the company diversified into building cars and in
1939 began manufacturing cars for the Japanese market. But due to the Second World War it had to
stop the production of cars and concentrated on the manufacture of the looms The company shifted its
focus back to automobiles with the termination of war and collapse of cotton market in 1951. In 1952 it
manufactured its first motorized bicycle called 'Power Free.
In 1954, the company changed its name to Suzuki Motor Co. Ltd. and was by then producing
around 6,000 cars per month. With 57 production centers all over world, its manufacturing and
assembly network expanded to over 26 countries all over the world. Company established 22
automotive manufacturing facilities in 17 countries. Suzuki's vehicles were sold through 134
distributors in 175 countries. By March 2001, Suzuki's net sales were 1,600, 253 billion and it was
one of the top 5 automobile manufacturers of the world. MUL manufactured passenger cars at its
factory in Gurgaon, Haryana with an installed capacity of 350,000 vehicles. The first product, Maruti
800 was launched in 1984. Consumers hitherto without any choice rushed to buy the vehicle. Maruti
800 earned the tag of being the 'people's car...'
SMC had raised its stake in MUL to 40% in 1987 and to 50% subsequently in 1992. As MUL
ceased to be a government unit, SMC began managing the company, with MD R.C. Bhargava
(Bhargava) taking directions from Japan.
As R.C. Bhargava reportedly shared a good rapport with the secretary and other higher
officials at the Industry ministry, the relations between SMC and GoI remained cordial. The first signs
of dispute surfaced in late 1993, when SMC proposed a Rs 2,200 crore expansion and modernization
plan. The plan envisaged increasing the production by 1,00,000 vehicles to effectively meet the
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growing competition in the sector. The Heavy Industry secretary Ashok Chandra and the Finance
secretary, Montek Singh Ahluwalia suggested SMC, in an informal discussion, to go in for a public
issue to raise the finance for the expansion plan. Though initially SMC was reluctant to go for a public
issue, Bhargava managed to persuade it in 1995 for the same. However, things changed with
K.Karunakaran (Karunakaran) becoming the Union minister for Industries in 1995.
The MUL Disinvestment Issue

In late 1999, following the recommendations of Disinvestment Commission, the GoI
announced its decision to divest its stake in MUL. The GoI decision was a part of its industrial policy
to privatize PSUs through gradual disinvestment or strategic sale. The first phase of MUL's
disinvestment was to start with a Rs 400 crore rights issue with renunciation option for the government,
in December 2001.
The second and final phase of MUL disinvestment was to be completed by the end of 2002,
wherein GoI would divest its remaining equity holding in MUL through a public offering. The GoI was
to sell its interest to the best bidder at a premium. However, subject to a clause in the MUL joint
venture agreement, the GoI could not sell its stake without the written consent of SMC. This was
expected to complicate the disvestment process of MUL. In January 2002, the GoI announced its
willingness to renounce its portion of the rights in favour of SMC during the rights issue. The
negotiations between the GoI and SMC to fix the renunciation premium and the control premium were
scheduled to begin in January 2002. GoI was reportedly hopeful of getting a substantial 'control
premium' for letting SMC get MUL's full control.
Factors that affect our conflict modes
Some factors that can impact how we respond to conflict are listed below with explanations of how
these factors might affect us.
Gender Some of us were socialized to use particular conflict modes because of our gender.
For example, some males, because they are male, were taught always stand up to someone, and, if you
have to fight, then fight. If one was socialized this way he will be more likely to use assertive conflict
modes versus using cooperative modes.
Expectations Do we believe the other person or our team wants to resolve the conflict?
Situation Where is the conflict occurring, do we know the person we are in conflict with,
and is the conflict personal or professional?
Position (Power) what is our power status relationship, (that is, equal, more, or less) with
the person with whom we are in conflict?
Practice involves being able to use all five conflict modes effectively, being able to
determine what conflict mode would be most effective to resolve the conflict, and the ability to change
modes as necessary while engaged in conflict.
CONCLUSION
Conflict is inevitable in the organization. There is a strong relationship between conflict and
organization development. There is constructive conflict that can serve to bring problems out into the
open where they may be addressed. There are destructive conflicts that must be dealt with. Conflict is
an inevitable fact of human existence. If we work to understand and manage it effectively, we can
improve both the satisfaction and productivity of our social relationships.
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REWARD & RECOGNITION SYSTEM THAT ARE FOLLOWING IN THE
ORGANISATIONS
K. Sarulatha, Rs, L. Suresh, Student, MBA Department , Sudharsan Engineering College
INTRODUCTION
In order for an organisation to meet its obligations to shareholders, employees and society, its
top management must develop a relationship between the organisation and employees that will fulfil
the continually changing needs of both parties. At a minimum the organization expects employees to
perform reliably the tasks assigned to them and at the standards set for them, and to follow the rules
that have been established to govern the workplace.
One strategy for reaching higher goals and development is motivation. Employees who are
motivated produce a higher quality of work and effectiveness which means that motivation is a key
factor for progress within an organization or business. A profound knowledge of motivation and its
meaning is therefore essential for success and development.
Motivating employees is a key factor for a company to success in their business. Motivation
was in the beginning of the 1900 thought only to be monetary. It was discovered during the 20-th
century that there are more factors than just money to motivate employees.
Traditionally most reward and recognition programmes were vague and often given in
response to a managers perception of when an employee performed exceptionally well. There were
usually no set standards by which exceptional performance could be measured, and it could have meant
anything from having a good attitude, assisting another department, or being consistently punctual. In
current organizational settings this is no longer the case, as organizations understand the great gains
derived by linking rewards and recognition to their business strategy.3
Both reward and recognition programs have their place in business. Management should first
determine desired employee behaviours, skills, and accomplishments that will support their business
goals. By rewarding and recognizing outstanding performance, organisation will have an edge in a
competitive corporate climate.
1.2 REWARD
Like a child being given a chocolate cupcake and a big hug after finishing some good work,
rewards and recognition can be powerful tools for employee motivation and performance improvement.
This paper focuses on non-monetary rewards, and as we will see, these types of rewards can be very
meaningful to employees and so, very motivating for performance improvement.
The main purpose of a reward system is to motivate the employees to work in a direction that
corresponds with the companys predefined goals. According to Samuelson et. al., rewards control our
behaviour. Consequently, to make the employees work in a desired direction it is important that
companies use rewards which stimulate the desirable behaviour. 4 Further, it is of significant
importance that the reward system is designed in a way that makes the individual or the group feels
they are able to influence the results. Thus, if a company wants to stimulate innovation and growth, the
rewards should be based on measures of performance, for example, the growth achieved or number of
products introduced.
According to Colin Pitts et al. reward is the benefit that arises from performing a task,
rendering a service or discharging a responsibility. In general, the principal reward is pay. Besides the
pay, employers also quite often offer the whole reward package that include not only wages and
salaries but many other rewards such as bonus, pension scheme, health insurance, allocated cars, and
mortgage assistance, beneficial loans, subsidized meals, and profit sharing, share schemes, share
options and so on. 5
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1.4 KINDS OF REWARD
There are two kinds of rewards namely intrinsic rewards and extrinsic rewards.
1.4.1 Intrinsic rewards

Intrinsic rewards are the satisfaction or accomplishment an employee gets from the job itself. For
example, an employee works overtime because he or she likes the job that he or she is doing. He or she
also motivates with the challenging project, the opportunities for learning and personal growth from the
project.9
1.4.2 Extrinsic rewards

Extrinsic rewards are rewards an employee gets from the employer such as praise, money, a promotion,
or benefits, etc. For example, an employee works overtime because he or she wants to get more money
or overtime payment. 11
A survey also shows that the employees also satisfied with extrinsic factors, such as working
environment, their co-workers and the professional work climate, benefits, job securities and
flexible/normal work hours.12 Another study performed by Baer (2003), showed that extrinsic rewards
were positive for employees occupying simple jobs and negative for employees having jobs that were
difficult and challenging. 13
2.1 RECOGNITION
Recognition is also a strong motivator, because it is a normal human need to long for. Dubrin
et al. (2004) states that motivating others by giving them recognition and praise can be considered a
direct application of positive reinforcement. Studies conducted since 50 years ago have indicated that
employees welcome praise for a job well done as much as they welcome a regular pay check.26
Recognizing an employee can be seen as expressing appreciation for his or her efforts, is a good and
positive practice for both parts. 27 Recognition must be consistent, given in a regular basis, and most
important, part of the organization.
Sincere - Above all else, a good reward should reflect a genuine expression of appreciation. Token
acknowledgements leave something to be desired.
Meaningful - To endure a motivating influence, rewards should be aligned with the values, goals, and
priorities that matter the most.
Adaptable - The diverse workplace demands alternatives. Consider creative options to keep reward
program fresh. No single reward format works for everyone all the time. [Recognition should be
adapted and valuable to the receiver.
Relevant - Some personal dimension is essential to a good reward. No matter how formal or informal,
expensive or affordable, the relevance of any recognition will be improved with a personal touch - - its
a little thing that makes a big difference.
[Recognition should be provided by someone of significance to the receiver.]
Timely - It is important that rewards respond to the behaviour they are intending to reinforce. Dont
let too much time pass or the reward may be devalued and credibility eroded. 32
CONCLUSION
Reward and recognition system plays a vital role in motivating employees to perform their
assigned work more efficiently. Since money is not a sufficient motivator in encouraging the workplace
performance required in todays competitive business environment, employees should be rewarded for
their individual work as well as the quality of production.
Recognition is the key acknowledgement given for the employees good work in the
organisation. Managers and supervisors will need to be comfortable with the relationship among the
employees which influence the employee motivation. The adequate feedback on employees
performance through reward and recognition will increase the efficiency. Training and development
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programs will encourage the employee to increase the performance and motivate to get reward for their
quality of work. The employees acceptance level of the reward and recognition system will increase
the employee morale in the organisation. Also work culture of the organisation has major influence in
the motivational factors to attain reward in the organisation. To secure the whole co-operation of
employees the dignity of labour should be recognised so as to fulfil their physiological and
psychological needs properly.
REFERENCE
Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., & Walton, R.E. (1984), Managing human assets.
New York: The Free Press.
Par, G., Tremblay, M., and Lalonde, P. (2001), Workforce Retention: What Do IT Employees Really
Want?, SIGCPR 2001 San Diego, CA, USA.
Flynn, G. (1998). Is your recognition program understood? Workforce, 77(7), 30-35.
Samuelson, Lars A et. al. , Controllerhandboken. Industrilitteratur AB, Stockholm,2001
Colin, Pitts ,Motivating your Organization: Achieving Business Success through Reward and
Recognition, McGraw-Hill Book Company Europe, England, 1995
297
RECENT TRENDS IN OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT
R.Matheswari, Assistant Professor, Department of MBA, Selvam College of Technology, Namakkal,
INTRODUCTION
The management of occupational health and safety is an emerging area of interest to both
academics and practitioners. The purpose of this paper is to clarify the boundaries of existing
knowledge in this area.
There has been significant research into safety management systems, Research commissioned
by the Health and Safety Executive has identified those factors that motivate organizations to adopt
proactive health and safety management.
Workers in every occupation can be faced with a multitude of hazards in the workplace.
Occupational health and safety addresses the broad range of workplace hazards from accident
prevention to the more insidious hazards including toxic fumes, dust, noise, heat, stress, etc. Preventing
work-related diseases and accidents must be the goal of occupational health and safety programmes,
rather than attempting to solve problems after they have already developed.
Hazards in the workplace can be found in a variety of forms, including chemical, physical,
biological, psychological, non-application of ergonomic principles, etc. Because of the multitude of
hazards in most workplaces and the overall lack of attention given to health and safety by many
employers, work-related accidents and diseases continue to be serious problems in all parts of the
world. Therefore, trade unions must insist that employers control hazards at the source and not force
workers to adapt to unsafe conditions.
Management commitment to health and safety and strong worker participation are two
essential elements of any successful workplace health and safety programme. The most effective
accident and disease prevention begins when work processes are still in the design stage.
The conclusion is that more research and investigation is required into the development and
implementation of safety management systems within the organizations.
Hazard Assessment
Hazard analysis or hazard assessment is a process in which individual hazards of the
workplace are identified, assessed and controlled/eliminated as close to source (location of the hazard)
as reasonable and possible. As technology, resources, social expectation or regulatory requirements
change, hazard analysis focuses controls more closely toward the source of the hazard. Thus hazard
control is a dynamic program of prevention.
This assessment should:

Identify the hazards
Identify all affected by the hazard and how
Evaluate the risk
Identify and prioritize appropriate control measures
The calculation of risk is based on the likelihood or probability of the harm being realized and
the severity of the consequences. This can be expressed mathematically as a quantitative assessment
(by assigning low, medium and high likelihood and severity with integers and multiplying them to
obtain a risk factor), or qualitatively as a description of the circumstances by which the harm could
arise.
298
The assessment should be recorded and reviewed periodically and whenever there is a
significant change to work practices. The assessment should include practical recommendations to
control the risk. Once recommended controls are implemented, the risk should be re-calculated to
determine of it has been lowered to an acceptable level. Generally speaking, newly introduced controls
should lower risk by one level, i.e., from high to medium or from medium to low.
Some of the Health and Safety Risks

Physical injury - electric shock, gas explosion, burns from sparks and spatter.
Arc-eye (welding flash) - gritty feeling in the eye and skin burning can result from invisible
ultra-violet radiation from the arc. The effect is delayed. It is particularly intense with TIG welding of
aluminum alloy. Damage to the retina and blindness can occur.
Assist employee personal development

Besides maintaining its normal business operation, the virtual organization may develop an
affordable employee career development plan. The organization should assist its employees to expand
their knowledge and potentials, provide opportunities to fully utilize employee expertise, and help
employees plan realistic career development goals. Provide key employees with comfortable working
environment and personal development opportunities in order to increase positive motivation and
creativity of these employees.
CONCLUSION
Because of the characteristics of virtual organizations and technical employees, the human
resources management in a virtual organization differs from HR management of a traditional business.
Virtual organizations should develop a good learning environment, establish a learning business
culture, and help employee development by knowledge sharing and other measures. Human resources
management in a virtual enterprise also needs to emphasize and educate teamwork spirit. Effectively
combining teamwork management and personal development of technical employees, supporting
employee career development while maintaining business development momentum, developing an
environment that each employee can fully utilize his/her initiatives and personal values, and
maximizing all employees potentials and intelligence, are all beneficial to promote corporate
competitive advantages.
299
ANALYSIS AND REVIEW ON STRESS MANAGEMENT IN APPAREL INDUSTRY
Prof. A. Srinivasan., MBA., MPhil.,PGDBA.,Department of MBA, Nehru College of Management &
Research Scholar Ph.D, Bharathiyar University, Coimbatore
Dr. R. Ganesan, MBA., M.Com., MPhil., Ph.D.,PGDCA., Principal Sri Venkateswara College of
Computer Application & Management, Ettimadai, Coimbatore
ABSTRACT
This paper exploits the stress management of the employees engaged in apparels industry.
Stress is an inevitable part of todays life. In this age of globalization & liberalization of the economy,
competition among the organization as increased. Managers attempt to another to reach the top
therefore modern organizations are facing the problem of executives stress and burnout individuals &
organizations have to pay economic and human cost due to these problems. Stress is the order of the
day and it is possible to be entirely without stress.
The loss of a job can be devastating, putting employed workers at risk for the physical illness,
martial strain, anxiety, depression & even suicide. Until these transitions are made to a new position
stress is chronic.
The work load and the time pressure is another important factor of stress among the
employees. The work load may be rearranged based on employees efficiency and introduction of
incentives schemes for more production, may avoid feeling of over burden in an organization.
Job stress can be defined as the harmful physical and emotional responses that occur when the
requirements of the job do not match the capabilities, resources, or needs of the worker. Job stress can
lead to poor health and even injury.[United Status National Institute of Occupational Safety and
Health, Cincinnati-1999]. The emotional, cognitive, behavioral and physiological reaction to aversive
and noxious aspects of work, work environments and work organizations. It is a state characterized by
high levels of arousal and distress and often by feelings of not coping.[Guidance on work-related
stress: Spice of life or kiss of death, European Commission, Directorate-General for Employment and
Social Affairs] Stress is the reaction people have to excessive pressures or other types of demand
placed on them.[Managing stress at work: Discussion document, United Kingdom Health and safety
Commission, London, 1999].The World Health Organisation (WHO) defines stress asthe reaction
people may have when presented with demandsand pressures that are not matched to their knowledge
andabilities and which challenge their ability to cope. The WHO states thatstressoccurs in a wide
range of work circumstancesbut is often made worse when employees feel they have littlesupport from
supervisors and colleagues and where they havelittle control over work or how they can cope with its
demandsand pressures. At the same time, workers are reporting an increasing level of mental health
problems. In the 2000 EuropeanWorking Conditions Survey (EWCS), work-related stress was found to
be the second most common work-relatedhealth problem across the EU15 (at 28%; only back pain was
more common). Moreover, work-related stress hasalso been associated with a number of other ill-
health outcomes, such as cardiovascular diseases (e.g. Kivimki etal, 2002), musculoskeletal disorders,
particularly back problems (e.g. Hoogendoorn et al, 2000) andneck-shoulder-arm-wrist-hand problems
(the so-called RSI-repetitive strain injuries; e.g. Arins et al, 2001), aswell as absence from work (e.g.
Houtman et al, 1999)

1) To identify the level of stress among the working people.
2) To identify the various causes for the work stress.
3) To know the consequences of work stress towards employees.
4) To know the various sources to overcome or to cope with up with the stress
300
SAMPLING PLAN
People in the age of above 20 years have been selected for data collection. In Royal Classic
Apparels around 600 employees are employed. 10 percent of employees have been selected for data
collection based on stratified sampling technique. The entire organization is divided into departments
1.Pattern Making, 2.Cutting, 3.Stiching, 4.Checking, 5. Packing. From each department sufficient
number of samples has been selected in proportion to number of employees in each department.
PERCENTAGE ANALYSIS:
It is unvaried analyses were the percentage of the particular factor with different categories
are calculated in order to get a fair idea regarding the sample. These are used in making comparison
between two or more series of data.
Formula:
Percentage of respondents = Number of respondents/ Sample size * 100
(1) Weighted Average Method
Weighted average = WD
W
W= Weight D= Demand
Where the average cost method sometimes called the weighted average method is widely used
method of inventory valuation. Weighted average assigns more weight to some demand values (usually
the more recent ones) than the others.
LIMITATIONS OF THE STUDY

The study is particularly restricted only to Royal Classic groups, Tiruppur. The stress level of
employees is restricted to only certain period. Depends on the management strategies it might be
changed. Around 25 to 30 percent of employees answers to the questionnaire are in natural from. It
may not reveal the entire truth in the employee stress. The organization is belonged to the private
people the employees may have their own cloud.
Analysis and Interpretation
WEIGHTED AVERAGE METHOD

Analysis of employees opinion on stress management happens in apparels industry using weighted
Average method.
Table 1: Response of the employees on stress management happens in apparels industry.
Formula: (SA*5+A*4+NAD*3+D*2+SD*0) / (5)
Sl.No Parameter SA A NA D SD Weighte

D d Score
1 Difficulty in concentrating 15 16 17 16 6 44.4
2 Increased digestive problems 10 9 20 15 16 35.2
3 Eye strain 12 13 13 14 18 35.8
4 Feel tension or nervous 12 18 17 13 10 41.8
5 Lack of opportunity 4 6 20 16 24 27.2
6 Communication system is not effective 20 22 20 4 4 51.2
7 Wages and salary is good 11 9 20 17 13 37
8 Good relationship with superior 15 12 16 12 15 39
9 Performance appraisal is effective 11 17 13 12 17 37.2
10 Proud to be in this organization 14 11 17 12 16 37.8
The above table shows that the employees feel about relationship with the superior is good
(39), the employees feel proud to be in there organization (37.8), and they feel poor about the
communication is not effective (51.2) prevailing in the organization.Majority of the employees
301
responds that the relationship with the superior is good when compared to all other things happen in the
company.
Chart 1: Weighted Score of the employees opinion on stress management happens in apparels
industry.
It has been found that majority of the

60
respondents are employed in cutting,
50
40
stitching and packing department of the
30
organization.Around 30 percent of
20 employees are free from any stressful
10 situation and confusion. And more that
0
49 percent of employees accepted that
Increased
Performance
Feel tension or
with superior
Eye strain
Communication
salary is good
Proud to be in
opportunity
digestive
problems
relationship
system is not
appraisal is
organization
Wages and
they are overwhelmed and confused in
effective
Lack of
Difficulty in
concentrating
effective
nervous
Good
this
the organization.45 percent of
respondents are felt that they are worn
out at the end of the day. Only 32 percent
of respondents do not have such feeling. It means the majorities of the employees are having the feeling
of tiredness and bored on at the end of day.Around 27 percent of employees are accepted that they have
the digestive problems. Around 44 percent of employees do not have such problems.
Around 33 percent of respondents are having experience of shakiness, trembling and nervous
laughter. And 46 percent of respondents do not have such experience.
36 percent of respondents are having eye strains and have dark circles under their eyes. And
46 percent of employees do not have such problems.43 percent of respondents are feeling all wound up,
tense or nervous in their work place. And 33 percent of respondents do not have such feeling. It shows
that the majority of the respondents are highly stressed in the organization.30 percent of respondents
are Experience tension or tightness in the muscles of their neck, back or jaw in their work place. And
53 percent of respondents do not have such feeling.30 percent of employees accepted that they were
arguing with fellow employees for some other reasons. And 53 percent of employees are having good
relationship with their fellow employees.The overall scenario in the organization is not good for the
organization. The management may have to rethink their employee policy to improve the present status
in the organization.The communication system in the organization is not most effective. Most of the
employees pined that the system is not effective. The relationship between superior and subordinates
must be strengthened through the effective system of communication.The workload and time pressure
is another important factor of stress among the employees. The workload may be rearranged based on
employees efficiency and introduction of incentive schemes for more production may avoid feeling of
overburden on employees,The wages and salary structure is another important factor of stress. The
money is important factor in everyones life. The salary structure may be rearranged on par with
prevailing level in similar industries.
CONCLUSION
The study of stress is a serious subject for everyone. People are living in an era of more
competition and huge pace in the life. Everyone have to be disturbed by some other reasons. This leads
to minimum to maximum level of stress in everyone life. Without stress nothing is interesting in the
life, the stress either positive or negative. The positive stress is always providing benefit to one and
negative stress will create some problem for the individual.
The study work stress is conducted in royal classic group, Tiruppur, gave away lot of inputs
to the researcher. The employees stress is always created by lot of organizational factors like working
conditions, salary level, the communication system in the organization, the promotional policy of the
management and attitude of superior towards the employees. Properprogrammes adopted by the
302
management could reduce such problem. The loss created by the stress not only to the individual and
also to the organization.
REFERENCES
Cole, Tim J., Mary C. Bellizzi, Katherine M. Flegalet al.2000. Establishing a standard
definition for child overweightand obesity worldwide: international survey.British Medical
Journal.May 6, 2000. Vol. 20,p.1-66.
Dollard, Maureen F. and Jacques C. Metzer. 1999. Psychologicalresearch, practice, and
production: The occupationalstress problem. International Journal of
StressManagement.October. Vol. 6, no. 4, p. 241-253.
Harrington, J. Malcolm. 2001. Health effects of shiftwork and extended hours of work.
Occupational and EnvironmentalMedicine.January.Vol. 58, no. 1. p. 68-72.
International Labour Office (ILO) and joint WHOCommittee on Occupational Health. 1986.
Psychosocial
factors at work: Recognition and control. Occupational Safetyand Health Series no.
56.December.ILO. Geneva. 81 p.
Karasek, Robert A. 1998. Demand/control model: Asocial, emotional, and physiological
approach to stressrisk and active behaviour development. Encyclopaedia ofOccupational
Health and Safety 4th Edition.Chapter 34.
Geneva. International Labour Organization.Karasek, Robert A. 1979. Job Demands, Job
Decision
Latitude, and Mental Strain: Implications for Job Redesign.Administrative Science
Quarterly.June. Vol. 24,p. 285-308.
303
QUALITY OF WORK LIFE IN AAVIN MILK COOPERATIVE INDUSTRY
V.Uma., Research Scholar, Karpagam University, Coimbatore
Dr. R. Mary Metilda, Associate Professor & Head, School of Business, SNS College of Technology,
Quality is generally defined as Conformance to requirements. Quality is Fitness for

purpose. The concept of quality is not apply to all goods and services created by human beings, but
also for workplace where the employees were employed. Quality in the workplace comes from
understanding and then fully meeting, the needs of all internal and external customers, now and into the
future and doing so with continual improvement in efficiency and effectiveness.
Quality of Work Life (QWL) refers to the favorable or unfavorable of a total job environment
of the people. The basic purpose is to develop jobs and working conditions that are excellent for people
as well as for the economic health of the organization. QWL provides a more humanized work
environment. It attempts to serve the higher order needs of workers as well as their more basic needs.
It seeks to employ the higher skills of workers and to provide an environment that encourages
improving their skills. The employees attrition rate has been increasing slightly and every management
is keen to know whether the employees are satisfied with the present working environment and the
benefits they provided to the employees. Thus the present study was undertaken in Quality of Work
Life to analyze the working environment related with the quality of their work to manipulate the basic
exception of the employees. This study focuses on employee quality of work life at Aavin Milk Co-
operative industry, Coimbatore.

Primary Objectives are:
To study the quality of work life in Aavin milk cooperative industry.
Secondary Objectives are:
To find the satisfaction level of employees towards the working condition.
To understand the recognition and rewards system in the organization.
To know about the career development in the organization
To understand how the employees balance the work life and the family commitments.
SCOPE OF THE STUDY

The QWL addresses the need to see all of the significant Work programs & services from
one web location. It takes a comprehensive view and presents Work life in five categories:
o Family
o Health & Wellness
o Culture and Community
o Professional Development
o Financial Planning & Retirement
There will be high yield of the output from the employees which leads to the growth of the
organization.
The interview has been directly conducted where observations and reality of underlying ideas or
opinions are acquired.
NEED OF THE STUDY:

Todays competitive global economy greatly stresses the important of the human aspects. For
better or worse the workers spent many of their hours at work. In addition to working as an assigned
task they typically interact with each other like supervisors, co-workers and are exposed to
organizational policies and practices. This study aims at the complete understanding of the factors that
enhance the overall quality of an employees working environment.
304
Table 1.5 Opinion about the age level of the employees.
SL NO AGE NO. OF RESPONDENTS PERCENTAGE
1 20-30 19 38
2 30-40 29 58
4 50 above 2 4
Total 50 100
Source: (Primary data)
INFERENCE:
It is inferred that 58% of the respondents are from the age group of 30-40, 38% of the
respondents are from the age group of 20-30, and 4% of the respondents are from the age group of 50
above.
Table 1.6 Opinion about the gender of the employees

SL NO GENDER NO. OF RESPONDENTS PERCENTAGE
1 Male 35 70
2 Female 15 30
Total 50 100
INFERENCE:
It is inferred that 70% of the respondents are male, and 30% of the respondents are female.
Table 1.7 Responses towards the experience level of Employees

SL NO EXPERIENCE NO. OF RESPONDENTS PERCENTAGE
1 Less than 5 yrs 23 46
2 5 to 10 23 46
3 10 to 15 2 4
4 Above 15 2 4
Total 50 100
It has been inferred that 46% of the respondents have less than 5 years and 46% of the
respondents have experience form 10-15 years of experience. Very few(4%) of the respondents have
experience from 10-15 years.
Chart 1.8 Opinion of the employees towards the relationship with their superior
90
80
80
70
PERCENTAGE
60
50
40
30
20
10
12 8 0 0
0
Excellent Good Average Poor Very poor
OPINION
It is inferred that 92% of the respondents have harmonious relationship which added value to the
organization.
Table 1.9 Opinion of the employees about compromising their personal life for the job.
SL NO OPINION NO. OF RESPONDENTS PERCENTAGE
1 Strongly agree 5 10
2 Agree 24 48
3 Neutral 21 42
4 Disagree 0 0
5 Strongly disagree 0 0
TOTAL 50 100
305
INFERENCE:
It is inferred that 48% of the respondents have strongly agreed in their opinion about compromising
their personal life for the job, 42% of the respondents have agreed in their opinion about compromising
their personal life for the job, and 10% of the respondents are neutral in their opinion about
compromising their personal life for the sake of job.
Table 2.0 Opinion of the employees about the balance between their family life and the work life
SL NO OPINION NO. OF RESPONDENTS PERCENTAGE
1 Very difficult 8 16
2 Difficult 19 38
3 Little Difficult 23 46
4 Better 0 0
5 Easy 0 0
TOTAL 50 100
It is inferred that 46% of the respondents found little difficult to balance between their family life and
work life, 38% of the respondents often found difficult to balance between their family life and work
life, and 16% of the respondents sometimes have the balance between their family life and work life.
WEIGHTED AVERAGE METHOD

AIM: To find out the satisfaction level of the employees in promotional policies of the
company, job, salary, safety and health measures.
Satisfaction Highly Satisfied Partially Dissatisfied Highly Total

Level/Factors satisfied satisfied dissatisfied
Promotional 8 32 9 1 0 50
policies
Job 5 36 8 1 0 50
Salary 9 34 6 1 0 50
Safety and 7 36 6 1 0 50
health
measures
2.2 WEIGHTED AVERAGE TABLE

Promotional Safety and health
Rank Weight policies Job Salary measures
X W X1 X1W X2 X2W X3 X3W X4 X4W
1 5 8 40 5 25 9 45 7 35
2 4 32 128 36 144 34 136 36 144
3 3 9 27 8 24 6 18 6 18
4 2 1 2 1 2 1 2 1 2
5 1 0 0 0 0 0 0 0 0
Total 50 197 50 195 50 201 50 199
CW 3.94 3.9 4.02 3.98
Rank 3 4 1 2
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INFERENCE:
From the above analysis it is clear that the employees are highly satisfied with the salary provided in
the company followed by the satisfactory level in the safety and health measures and which is followed
by the satisfactory level in the promotional policies and at last the employees are satisfied in their job.
FINDINGS, SUGGESTIONS & CONCLUSION
FINDINGS
Following are the findings based on the responses from the employees.
A few of the respondents stated that their work is sometimes interfering with their family life
(46%).
Most of the respondents have agreed that they compromise their personal life (63%)
Majority of the respondents rated the relation with their superior as good (80%)
Majority of the respondents rated the relation with their co-worker as good (58%)
Majority of the respondents have strongly agreed that the company communicates every new
change to them.
Majority of the respondents are satisfied with the promotional policies of the company (78%)
All the respondents have strongly agreed that the management gives recognition for their
achievements (100%).
Most of the respondents have agreed that the organization gives freedom to use the skills
(52%)
Many respondents rated that the motivational factors followed by the supervisor is good
(44%)
A few of the respondents have strongly agreed that they find relaxation time (34%)
Most of the respondents have strongly agreed that they find enough time to complete their job
(52%)
Most of the respondents have strongly agreed that they find enough resources to do the job
(44%)
SUGGESTIONS
Some of the employees are not enjoying their job. Hence, counseling must be given in order to
motivate them.
The management must follow flexible work timings. Since some of the employees are
working for extended hours they feel it difficult to come at 9.00 am in the morning.
1/3 of the employees do not find enough time to complete their job effectively so they need to
practice time management techniques.
Employees needs special training from the company related to their job during working
period.
CONCLUSION
With the increase in the growth of competitiveness, the organization must realize the
importance of human resources. As human resources are the backbone of our nation the improvement
in the workers quality of work life will definitely have an impact over the organizations development.
Since the employees are assets of an organization they have to be cared and nourished properly. All
their requirements should be met.
Quality is generally defined as Conformance to requirements. Quality is Fitness for

purpose. The concept of quality is not apply to all goods and services created by human beings, but
also for workplace where the employees were employed. Quality in the workplace comes from
understanding and then fully meeting, the needs of all internal and external customers, now and into the
future and doing so with continual improvement in efficiency and effectiveness.
307
THE STUDY ON EMPLOYEE RESISTANCE TOWARDS CHANGE WITH
SPECIAL REFERENCE TO RANE BRAKE LINING LTD IN AMBATHUR.
Mr. P. Venkatesh, MBA, Lecturer, MBA Dept, Srinivasa Institute of Engineering and Technology,
Chennai 56
Introduction:
Resistance is the resultant employees reaction of opposition to organizational change (Keen,
1981; Folger & Skarlicki 1999). It has been studied as a prime reason why most change does not
succeed or get implemented (Egan & Fjermestad, 2005). As employees resistance has certain
implications for management, also employees play an important role in the success of firms change
that is why; it is a very important factor to be considered during organizational change program. In a
study of 288 companies who shared lessons and best practices in change management, Tim Creasey
found that the top obstacle to change was employee resistance at all levels (Haslam et al, 2004). Two
types of resistance may stem when in an organizational change, the attitudinal and behavioral
resistance (Sandy Kristin, 2000). The extent of employees resistance range from lack of interest,
negative perception & attitude, and strong opposing views, to; overt blocking behavior, violent strikes,
and boycotts (Coetsee, 1999).
Industry Profile:
Indian auto- component industry is relatively small by global standards with some individual
global auto component companies having sales far in excess of that of the Indian auto component
industry as a whole. The size of the industry has, however, increased in the last decade with the rapid
growth in Indian automobile production, triggered largely by the economic liberalization and with
global automobile players setting up manufacturing facilities in India. The other driver for expansion of
the Indian auto-component industry has been the increasing volume of exports. Major global
automobile manufacturers/Tier-1 suppliers are already sourcing auto components from India for their
global requirements.
Need for the Study:

The study to improve the employee morale by changing having effective change management.
The study identify where the company improve the employee resistance towards change.
The study provides the change environment to management.
Objectives of the study:

Primary Objectives:
To study on employee resistance to organizational change.
Secondary Objectives:
How organizational dynamics like machinery and tools, responsibilities, work play a role in
employee resistance.
To study how to reduce employee dissatisfaction for change.
To study how employees affected by organizational culture.
How the negative trust play role in employee resistance.
Research Methodology:
Research methodology is a systematic and scientific way to solve research problem. Research
methodology deals with the research methods and takes into consideration the logic behind the method.
Research is the careful investigation or inquiry especially through search for new facts in any branch of
knowledge.
Research Design:
The type of research used is descriptive research. Descriptive method was adopted because it
deals with description of the state of affaires as it exists at problem.
308
Sampling Design:
The sample design is a definite plan for obtaining a sample from a given population. It refers
to the procedure adopted by a research for selection items for a sample.
Sampling Population:
750 Low level and Middle level Employees of RANE BRAKE LINING LTD
Sampling Size:
The organization comprises of 750 employees in the low level and middle level management.
Out of which 100 respondents were chosen for collecting primary data.
Sampling Method:
The method used for collecting data is simple random sampling method, which means that is
the method of selection of a sample in such a way that each and every member of population or
universe as an equal chance or probability of being included in sample.
Data Collection:
Primary Data.
Secondary Data.
Primary Data:
Primary data are those which are collected as fresh and for the first time, for this study
primary data was collected by the method of survey using structured questionnaire.
Secondary Data:
The secondary data on the other hand are those which have already been collected by someone
else and which have already been passed through the statistical process. In the study, the data was
collected from website, books, etc.
Statistical Tools:
For the purpose of the data analysis, the following statistical tools were used,
Percentage analysis
Bar diagram, pie chart
Chi-square test
Percentage Analysis.
It is a analysis where the percentages of a particular factor with different categories are
calculated in order to get a fair idea regarding the sample. These are used in making comparison
between two or more series of data.
Formula:
Number of Respondents
Percentage of respondents =
Sample size
309
DEPARTMENT OF THE RESPONDENT
S.NO DEPARTMENT NO .OF RESPONDENT PERCENTAGE

1 HR 11 11%
2 Systems 43 43%
3 Production 18 18%
4 R&D 20 20%
5 Finance 08 08%
Total 100 100%
INFERENCE:
From the above table it is inferred that 43% of respondents were from Systems department,
20% of the respondents are from R&D department, 18% of respondents were from production
department, 11% of respondents from HR department and 8% of respondents from finance department.
INCOME OF THE RESPONDENTS
S.NO INCOME NO .OF
RESPONDENT PERCENTAGE
1 5000-10000 63 63%
2 10000-15000 14 14%
3 15000-20000 12 12%
4 20000-25000 09 09%
5 Above 25000 02 02%
Total 100 100%
INFERENCE:
From the above table, it is inferred that 63% 0f the respondents are income in 5000-10000,
14% the respondents are income in 10000-15000, 12% of the respondents are income in 15000-20000,
9% of the respondents are income in 20000-25000, only 2% 0f the respondents are income in above
25000.
INVOLVED WITH THE CHANGE PROCESS
OPINION NO OF PERCENTAGE OF
RESPNDENDS RESPONDENDS
YES 48 24
NO 152 76
TOTAL 200 100
310
INFERENCE:
From the above table, it is inferred that 76% of the respondents are involved in the change
process and 24% of respondents are not involved in the change process
NEEDS ARE CONSIDERED BEFORE CHANGES ARE IMPLEMENTED
RESPONDENTS RESPONDENTS
YES 76 38
NO 34 17
NOTSO 50 25
SOMETIMES 40 20
TOTAL 200 100
INFERENCE:
From the above table, it is inferred that 38% of the respondents needs are considered before
changes are implemented, 17% of the respondents needs are not considered before the changes are
implemented,25% of the respondents needs are considered notso,20% respondents needs are
considered some times before the changes implemented.
YES 124 62
NO 76 38
TOTAL 200 100
CHANGES TAKE PLACE IN YOUR ORGANIZATION AFFECTED YOU IN WHAT WAYS

MENTALLY 42 21
PHYSICALLY 26 13
PSYCHOLOGICALLY 74 37
OTHERS 58 29
TOTAL 200 100
INFERENCE:
From the above table, it is inferred that 21% of the respondents are affected by mentally, 13%
of the respondents are affected by physically, 37% of respondents are affected by psychologically and
29% of respondents are affected by some other problems basis on the changes.
311
THE CHANGES HARMS MY INTRESTS.
YES 104 52
NO 96 48
TOTAL 200 100
INFERENCE:
From the above table, it is inferred that 52% of the respondents interests are harmed by
changes and 48% of respondents are not harmed by change process
THE CHANGES BEING IMPLEMENTED HAVE CLEAR BUSINESS RESULTS IN MIND
STRONGLY 44 22
AGREE
AGREE 64 32
NEUTRAL 54 27
DISAGREE 32 16
STRONGLY 6 3
DISAGREE
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 22% of respondents strongly agree, 32% of the
respondents agree, 27% of respondents neutral, 16% of respondents disagree and 3% of respondents
strongly disagree for clear business results in our mind while changes implemented.
THE ORGANIZATION HAS MANY LEVEL OF HIERARCHY
AGREE 86 43
NEUTRAL 44 22
DISAGREE 70 35
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 43% of respondents agree, 22% of the respondents
neutral, 35% of respondents disagree for the organization has many level of hierarchy..
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SATISFIED WITH THE CHANGE MADE IN FACTORY LAYOUT
HIGHLY SATISFIED 56 28
SATISFIED 64 32
NEUTRAL 38 19
DISSATISFIED 26 13
HIGHLY DISSATISFIED 16 8
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 28% of respondents highly satisfied, 32% of the
respondents satisfied, 19% of respondents neutral, 13% of respondents dissatisfied and 8% of
respondents highly dissatisfied about their factory layout.
ACCORDING TO YOU WHAT IS THE REASON FOR ORGANIZATION LEVEL

RESISTANCE
POWER 54 27
GROUP NORMS 66 33
HABIT 52 26
PERCEPTION AND 48 24
RETENTION
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 27% of power, 33% of the group norms, 26% of habit
and 24% of perception and retention are reasons for organization level resistance.
DO YOU ACCEPT THE ORG POLICY AND STANDING ORDERS

YES 142 71
NO 58 29
INFERENCE: TOTAL 200 100
From the above table, it is inferred that 71% of the respondents are accept the organization
policy and standing orders and 29% of respondents are not accept the organization policy and standing
orders
313
THERE ARE EFFECTIVE LEVELS OF COMMUNICATION AMONG THE
ORGANIZATION
STRONGLY 56 28
AGREE
AGREE 66 33
NEUTRAL 32 16
DISAGREE 26 13
STRONGLY 20 10
DISAGREE
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 28% of respondents strongly agree, 33% of the
respondents agree , 16% of respondents neutral , 13% of respondents disagree and 10% of respondents
strongly disagree for effective level of communication among the organization.
MANAGEMENT MOTIVATES ALL EMPLOYEES TO BE INVOLVED IN CHANGES.
AGREE 104 52
NEUTRAL 50 25
DISAGREE 46 23
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 52% of respondents agree, 25% of the respondents
neutral , 23% of respondents disagree for management motivates all employees to be involved in
changes.
IS MANAGEMENT HELPS TO ADJUST THE CHANGE?
AGREE 146 73
NEUTRAL 38 19
DISAGREE 16 8
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 73% of respondents agree , 19% of the respondents
neutral , 8% of respondents disagree for management helps to adjust the change.
NEW CULTURE PROVIDING BETTER HOPE FOR CAREEER DEVELOPMENT
YES 122 61
NO 48 24
NOTSO 30 15
TOTAL 200 100
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INFERENCE:
From the above table, it is inferred that 61% of the respondents are accept new culture
providing better hope for career development and 24% of respondents are not accept this concept and
15% of respondents partially accept this concept.
WHAT ARE THE RECENT CHANGES IN ORGANIZATION THAT MIGHT AFFECT YOUR
WORK.
RULES AND 42 21
REPUTATION
T&D 72 36
COMPENSATIONS 76 38
WORKLOAD 10 5
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 21% of rules and reputation, 36% of T&D , 38% of
compensations and 5% of work load are affect the employees work while changing process.
WHETHER YOUR RESISTANCE TOWARDS ORGANIZATION CHANGE IS BASED ON

THE FOLLOWING.
FEAR OF LAYOFF 46 23
FEAR OF 96 48
PERFORMANCE
APPRAISAL
FEAR OF TRANSFERS 58 29
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 23% are fear of lay off, 48% are fear of performance
appraisal and 29% are fear of transfers basis on the resistance towards organizational change by
employees.
IF YOU ARE RESISTING TOWARDS ORGANIZATIONAL CHANGE IN WHAT WAYS.
STRIKES 36 18
BOYCOTTS 70 35
ABSENTISM 94 47
TOTAL 200 100
INFERENCE:
From the above table it is inferred that 18% are strikes, 35% are boycott and 47% are
absenteeism are oppose the organizational change.
315
CHI SQUARE
TEST 1:
OBJECTIVE: identify the relationship between qualification of employees with regard to
change made in factory layout.
NULL HYPOTHSIS (H0): there is no significant different between the qualification of employees
and satisfaction of change made in factory layout.
ALTERNATIVE HYPOTHESIS (H1): there is no significant different between the qualification of

employees and satisfaction of change made in factory layout.
TABLE (a)
Relationship between the qualification of employees and satisfaction of change made in factory layout.
Observed frequency (o)
Qualification/ change Highly Satisfied Neutral dissatis Highly Total
Factory layout satisfied fied dissatisf
ied
Higher secondary 6 4 4 4 4 22
UG 12 6 2 2 2 24
PG 4 8 4 2 4 22
Professionals 4 2 6 6 2 20
Others 2 2 4 2 2 12
Total 28 22 20 16 14 100
TABLE (b)
Qualification/ change Highly Satisfied Neutral dissatisfied Highly
Factory layout satisfied dissatisfied
Higher secondary 6.16 4.84 4.4 3.52 3.08
UG 6.72 5.28 4.8 3.84 3.36
PG 6.16 4.84 4.4 3.52 3.08
Professionals 5.6 4.4 4 3.2 2.8
Others 3.36 2.64 2.4 1.92 1.68
TABLE (c)
0i Ei 0i Ei (0i - Ei)^2 (0i - Ei)^2/Ei
6 6.16 -0.16 0.0256 0.0042
4 4.84 -0.84 0.7056 0.1458
4 4.4 -0.4 0.16 0.0364
4 3.52 0.48 0.2304 0.0655
4 3.08 0.92 0.8464 0.2748
12 6.72 5.28 27.8784 4.1486
6 5.28 0.72 0.5184 0.0982
2 4.8 -2.8 7.84 1.6333
2 3.84 -1.84 3.3856 0.8817
2 3.36 -1.36 1.8496 0.5505
4 6.16 -2.16 4.6656 0.7574
8 4.84 3.16 9.9856 2.0631
4 4.4 -0.4 0.16 0.0364
2 3.52 -1.52 2.3104 0.6564
4 3.08 0.92 0.8464 0.2748
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4 5.6 -1.6 2.56 0.4571
2 4.4 -2.4 5.76 1.3091
6 4 2 4 1.0000
6 3.2 2.8 7.84 2.4500
2 2.8 -0.08 0.0064 0.0023
2 3.36 -1.36 1.8496 0.5505
2 2.64 -0.64 0.4096 0.1552
4 2.4 1.6 2.56 1.0667
2 1.92 0.08 0.0064 0.0033
2 1.68 0.32 0.1024 0.0610
TOTAL 18.7023
Degree of freedom (DOF) = (R-1) (C-1)

= (5-1) (5-1) =16
At 5% level of significance
(DOF) =16
Calculated value =18.7023
Table value = 26.26
Findings:
Hence, table value is greater than calculated value. Therefore null hypothesis is accepted.
Result:
There is significant different between qualification of employees and satisfaction of change
made in factory layout.
Findings:
61% of the respondents are male and 39% of the employees are female.
The majority of the respondents fall under the age group of 25-35 years accounting 41% of
the respondents, followed by 26% of the respondents falling the under age group of 36-
45years, followed by the respondents falling under the age group below 25 accounting 13%,
followed by the respondents falling under the age group 46-55 accounting 12%, each and the
age group above 55 years accounting 8% only.
22% of the respondents are UG, 18% of the respondents are PG, 12% of the respondents are
higher secondary, 20% of the respondents are professionals and 28% of the respondents are
others.
43% of respondents are working from Systems department, 20% of the respondents are from
R&D department, and 18% of respondents were from production department, 11% of
respondents from HR department and 8% of respondents from finance department.
63% 0f the respondents are income in 5000-10000, 14% the respondents are income
in10000-15000, 12% of the respondents are income in 15000-20000, 9% of the respondents
are income in 20000-25000, only 2% 0f the respondents are income in above 25000.
Most of employees dont understand the need for current changes in the organization so the
implementation is tough.
Higher level of employees involved in the change process so the organization new
implementation improve the employee values and provide the new environment at the same
time it affects the employee performance.
The organization considered the employee needs before changes are implemented it reduce the
dissatisfaction of work for employees.
Changes affect the employees like mentally, physically, psychologically and other ways
employees highly affected by psychologically.
The new changes highly harm employees interests.
317
Most of employees satisfied about their factory layout like tardiness, ordering, it should be
improve the process level.
Group norms are vital role for organization level resistance.
Organization policy and standing orders satisfied by employees its improve the employee
level and reduce the employee resistance to organizational change.
Most of employees accept the new culture providing better hope for career development.
73% employees accept the management helps to adjust the change.
21% of rules reputation, 36% of T&D, 38% of compensations, 5% of workload is affect the
work by recent changes.
High like 48% of employees having fear about performance appraisals.
Boycotts are the method to resisting the organizational change by employees.
CONCLUSION:
The study reveals that majority of the respondents are satisfied with the change. But the
notable area is that there are still a few employees who are not satisfied with the management of
change. So, there is need for providing adequate communication regarding changes which are to be
implemented.
The management should consider about the requirement of employees to raise their
satisfaction level. The continuation of dissatisfaction is not good in the long term. Therefore the
organization has to take steps to remove the dissatisfaction as it may grow to on unmanageable size in
the future.
BIBLIOGRAPHY:
Manage Employee Resistance to Change
http://www.ehow.com/how_5264050_manage-employee-resistance-change.html#ixzz0uR5NWdBX
Level of employee resistance Published January 18, 2007 by:
Melissa Bushman
REFERENCES
Bolognese, A. F. "Employee Resistance to Organizational Change." New Foundations website. URL:
http://www.newfoundations.com/OrgTheory/Bolognese721.html
George, J., & Jones, G. "Understanding and Managing Organizational Behavior." Custom ed. Boston:
Pearson Custom Publishing.
Kotter, J. P., & Schlesinger, L. "Strategies: Addressing Resistance to Change." Brown University
website. URL:
http://www.engin.brown.edu/courses/en9/spring/maureen%20frey%20Managing%20Change%20.pdf
318
HR EXCELLENCE IN ORGANIZATIONAL CULTURE MANAGEMENT
K.Uma Shankar, Asst. Prof.,-MBA, Jawaharlal Institute of Technology, Coimbatore.
Govinda Solai, Asst. Prof.,,-MBA(Aero)-NA&AM, NGI, Coimbatore.
ABSTRACT
The industrialization of textiles organization, underway for several decades, offers instructive
guidance and models for speeding access to the people and cost effectiveness. This industrialization
i.e., the systematized production of goods or services in large-scale enterprises has the potential to
increase the value and effects of care for consumers, providers. A combination of policy, regulatory,
fiscal, systemic, and organizational changes which will be formed by the HR to fully penetrate the
mental health and substance abuse service sectors based on the work culture. Change has been forced
on to engineering management by increased globalization and competition, pressure from shareholders
for a better return on investment and the need to improve business performance. However, HRs in
organizations do need to make people redundant from time to time and it is present upon them to help
the affected employees in the jobs marketplace. This paper suggests that critical knowledge gaps exist
regarding (a) the knowledge, skills, and competencies of a work culture prepared to deliver effective
involvement; (b) the efficient and effective organization of work culture excellences by HR; and (c) the
development and replication of effective services based on work culture.
Keywords: Industrialization, Organizational Changes, Work Culture, Change Management, HR
Excellence.
INTRODUCTION
HR management should look at mapping peoples job competencies and the competencies that
organizations need to meet their plans or improve the existing business performance and then match the
two, which they do it incumbent. Improving organizational culture has become a necessity in today's
ever-changing business environment. People want to work for a company where they can be happy and
balance work and life. Organizations that treat their members well have experienced a better retention
rate, an increased productivity and a happier overall culture. This is main excellence of HR. Focusing
on a few important steps will help you get started in improving organizational culture. Getting the right
training for your employees is the first step toward improving organizational culture. The other
important steps for enhancing organizational culture include: Analyze your organization's existing
culture and compare it with customers' expectations and perceptions.
Workplace Development
Education aside, development within the workplace is a two way street. Managers need to do
more than simply say that they sustain a persons development. Giving a staff member
authorization to better themselves in their role may not be enough; employees should be encouraged
to develop, supported fully every step of the way and above all else, and given adequate time to do so.
This should be a main HR policy. It is not enough to permit development if the person is then given
too large a workload to be able to do anything about it. When this occurs, employees will feel their
development needs are not being met and will eventually leave the company, becoming more
disgruntled and negative each day until they do.
Change in Work Culture

Change never changes. Hence everything in the world requires change. Due to these changes
the work culture or the organizational culture can be improved. The best excellence of HR is the
change management. The following customs framed by HR will gradually help the upliftment:
Improve workplace methods and measures. Since work culture can be harmfully affected
by mystifying opportunity, it's essential to modernize employee workload and requirements. Tweak
work flow by extracting unnecessary steps and implementing quality improvements. This commitment
to improving efficiency can change work culture for the better by decreasing wasted time and talent.
319
Engage in ongoing beneficial discourse with employees. This makes employees feel as if
their input matters, which creates company loyalty. Launch regular meetings to give out information,
including progress reports and upcoming events. Maintain an open-door policy, which encourages
employees to share complaints and suggestions without fear of retaliation. Follow up on employee
inquiries in an industrious manner to ensure employees aren't left guessing about your actions or target.
The Process of Culture Change: A Framework

Anyone working to bring about lasting culture change will attest to the vastness of the
task. Without a framework, culture change appears hopelessly complex. The four-phase Culture
Change Process was developed in order to organize such efforts into meaningful steps.
Live Analyze Passionate Leader

the the Entre ship
Values Goals preneurship Commits
Culture Change Process Framed by HR

The first step is live the values, i.e., an organization will be having their own values which will
set up benefit to the organization not only capital wise but also in culture.
Aligning work culture with business performance

Having a performance management system in place may contribute towards individual
performance improvement but improving overall organizational performance is a daunting task. This is
especially so since this venture involves raising the performance levels of employees who may not
share the enthusiasm and choose not to participate. They may be comfortable with what they are doing
and their core belief about work expectations and outcomes do not subscribe to that of seeking to
improve performance. If these core beliefs are held by a majority of the employees, then a culture of
self-satisfaction exists and obstructs attempts to improve overall performance.
Relating Organizational Culture and HR Excellence to the Base Line

The requirements relating to managing overall cultural transformation and developing
leadership qualities to drive the transformation in organizations oftentimes are difficult to meet.
Organizational culture and leadership competencies have always been viewed as obscure subjective
phenomena that can be sensed but are very difficult to measure. And it is a well-known fact that what
cannot be measured, cannot be managed.
HR Motivation towards Work Cultural Uplift

The leading culture may influence the HR policy and practices adopted by organizations. To
motivate the relationship between high performance work practices and culture orientations and assess
whether such practices explain variance in culture orientations, many different definitions of culture
have been proposed.(for example, Denison, 1996). Here, we define work culture as 'a set of core
values, analyzing goals, passionate entrepreneurship and leadership commits which govern the way
people in an organization interact with each other and invest energy in their jobs and the organization at
large. This motivates the entire organization to uplift the employee growth through HR competencies.
Work empowerment is assessed as a relational construct and as a motivational construct.
Empowerment occurs when power of the better-quality is relinquish to subsidiary, and with it ability
and accountability. The subsidiary experiences a sense of possession and control over their jobs.
Affective assurance involves the employee's emotional attachment, identification with and involvement
in the organization. Many studies show that high assurance is beneficial to the organization, although
low assurance can be a source of individual creativity and innovation that may be beneficial for the
organization. High assurance facilitates loyalty so a stable workforce can be sustained regardless of
external environment changes.
320
Solving the Issues
Whenever two or more people come together with a shared purpose, they form a culture
with its own written and unwritten rules for behavior. Our families, workplaces and communities
all have cultures. These cultures have a marvelous, though rarely recognized, impact upon our
behavior as individuals. Each cultural environment provides a unique set of standards to which
we must adapt. Our behavioral patterns change dramatically from cultural context to cultural
context. For example, on the job we are expected to behave in accordance with certain social
standards. Expectations about behaviors at work usually differ from what is expected of us in our
organization and in our society. Individual initiatives. Almost invariably, the long-term
individual solution must also be a cultural solution. This HR excellence forms a diverse team of
interested and enthusiastic people in an organization to enhance the organizational culture.
Conclusion
Culture improvement in organizations of HR is like any other change, as it requires
champions. The champion needs to be someone who is passionate about creating the new culture. Any
change will have a greater chance of success with momentum. Thus, get started but be committed to
building momentum and staying with it. It will be one of the most rewarding efforts you and your team
will ever engage in and with this you can bring great improvement in your organizational culture. The
above-mentioned lists are the specific tips that have enhanced and improved the organizational culture
of various organizations. Obviously, these are not the only things you can do to enhance your culture,
but these will provide you with a good starting point. The business world today is sometimes lacking in
terms of genuine development assistance for its employees. Declaring in mission statements and
marketing material that businesses support internal development and internal career progression is not
sufficient unless they back this up in practice. Further, development should not be made the sole
responsibility of the employee, as this can lead to them finding themselves without any assistance
whatsoever in terms of advancing their career and being left to bear the blame when they are unhappy
in their job. There is a time for change and that time is now.
References
[1] Jai B.P. Sinha, Patterns of Work Culture: Cases and Strategies for Culture Building, Sage
Publications India Private Limited, 2000.
[2] Winter, R., & Sarros, J. (2002). The academic work environment in Australian universities: A
motivating place to work? Higher Education Research & Development, 21(3), 241258.
[3] Paewai, S., Meyer, L. H., & Houston, D. (2007). Problem solving academic workloads
management: A university response. Higher Education Quarterly, 61(3), 375390.
[4] Houston, D., Meyer, L. H., & Paewai, S. (2006). Academic staff workloads and job satisfaction:
Expectations and values in academe. Journal of Higher Education Policy and Management, 28(1), 17
30.
[5] Forgasz, H. J., & Leder, G. C. (2006). Academic life: Monitoring work patterns and daily activities.
Australian Educational Researcher, 33(1), 122.
321
A STUDY ON JOB STRESS AMONG NATIONALISED BANK EMPLOYEES IN
THANJAVUR DISTRICT
Dr. R. Saminathan, Principal I/C, Bharathidasan University Model College, Aranthangi.
K.Kumar, Assistant Professor,Gnanam School of Business Thanjavur - Sengipatti 613 402.
Email: kkumar.com @gmail.com
INTRODUCTION
Today workplace stress is becoming a major issue and a matter of concern for the employees
and the organizations. It has become a part of life for the employees, as life today has become so
complex at home as well as outside that it is impossible to avoid stress. Hans Selye [19361 defines
stress as a dynamic activity wherein an individual is confronted with an demand. Organisational
stress arises due to lack of person- environment fit. When organizational stress is mismanaged, it
affects the human potential in the organization. It further leads to reduced quality, productivity, health
as well as wellbeing and morale. In this juncture. the present study is undertaken to address specific
problems of bank employees related to occupational stress. This throw light in to the pathogenesis of
various problems related to occupational stress among bank employees.
Becdor and Newman (1979) define occupational stress as A condition arising from the
interaction of people and their jobs and characterized by changes within people that force them to
deviate from their normal functioning.
According to Douglas (1980) stress is defined as any action of situation that places special
physical or psychological demand upon a person.
Van Fleet (1988) stress is caused when a person is subjected to unusual situations demands
extreme expectations or pressures that are difficult to handle.
Cobb (1975) has the up opinion that, The responsibility load creates severe stress among
workers and managers. If the individual manager cannot cope with the increased responsibilities it
may lead to several physical and psychological disorders among them. Brook (1973) reported that
qualitative changes in the job create adjust mental problem among employees. The interpersonal
relationships within the department and between the departments create qualitative difficult within the
organization to a great extent.
Miles and perreault (1976) identify four different types of role conflict, 1. Intra-sender role
conflict 2. Intersender role conflict, 3. Person role conflict 4. Role overload. The use of role concepts
suggest that job related stress is associated with individual interpersonal, and structural variables (Katz
and Kahn 1978. Whetten, 1978) The presence of supportive pear groups and supportive relationships
with supervisors are negatively correlated with R.C. (Caplan et al; 1964)
SIGNIFICANCE OF THE STUDY
Stresses may vary, they may be in the form of day-to-day worries, major events of prolonged
problematic work situations or they may arise from certain ideas, thoughts and perceptions that evoke
negative emotions. The factors causing stress in a person are called stressors. As the social and
organizational demands on us tend to increase with complexities, so do the intensity of stressors. for an
employee the following are the important of major categories of stresses at work place.
Role Overload
Role Conflict
Role Ambiguity
Lack of Group Cohensiveness
Lack of Supervisory Support
322
Constraints of Changes, Rules & Regulations
Inadequacy of Role Authority
Job Requirements
Job stress leads to unclear goals and / or objectives - difficulty in concentrating, job
dissatisfaction lack of confidence, feeling of futility, a lowered sense of self - esteem, depression, low
motivation to work, increased blood pressure and pulse rate, and intentions to leave the job. The
delirious effect of job stress impairs the physical and mental health of the employees. And for better
performance of the employees, the bank management has an onerous task to provide a congenial
atmosphere to the employees to cope with job stress in the realm of HRM (personal administration)
Amid this background, the present study of bank employees in Thanjavur district. Tamilnadu, has
assumed greater significance than ever before.

The banking sector is not an exception to the job stress phase. Inherently certain research
questions arise. For instance, what causes job stress among bank employees?. How is high stress
impacting the performance of the employees? etc. Number of the years spent with an organization,
emotional reactions and colleagues and subordinates, group cohesion and interpersonal trust, insecurity
and the threat of unemployment, poor working conditions, Technological changes, etc. are the key
variables for the research problem. As such, the present study will help develop more appropriate
strategies to cope with workplace stress and that these could be incorporated into a more fully
integrated set of human resource policies for better performance of bank employees in the study
district.

The primary aim for the study is to analysis the level occupational stress among the bank
employees in thanjavur district.
To examine what is the effect of stress on work factors. (eg. morale, job satisfaction, task
effort, organizational commitment, etc. ) when people are under high stress.
To identify different methods and techniques to reduce job related stress.
METHODOLOGY OF THE STUDY

Sources of Data
The study depended on both primary and secondary sources of data. primary data were
collected by conducting a sample survey of employees working in thanjavur district. A well- conceived
questionnaire was used for the collection primary data. The secondary data was collected from research
publications, standard journal and periodicals including the government organizations and from
respective records about the job related occurrence.
Population
The population selected for this particular study is employees from public sector units in
Thanjavur district. Public sector comprise of State Bank of India, Indian bank, Union bank of India,
Bank of India, Bank of Baroda, Questionnaire were distributed and collected personally by the
researcher.
Research design
The study is explorative as well as descriptive in nature.
Sampling design
The sampling population of this research includes 100 employees of public sector bank in
Thanjavur District. Tamilnadu, this research followed the systematic random sampling method
representative population. The populations belong to a group of 30-40 both male and female
respondents.
323
ANALYSIS AND RESULTS
The data will be analyzed to determine any difference between the stress level of employees
and their impact on reducing stress. In this paper also an analysis of data collection by representing it in
tabular form along with interpretations. The information collected were analysis for arriving at proper
conclusion on the topic.
TABLE :1
PERCENTAGE OF RESPONDENTS WHO FELT THAT THEY WERE STRESSED
(AGE GROUP 30-40)
Category % of stressed Respondents
Stresses 93
Not stresses 07
From the above table:1 shows that majority of the respondents working in public sector banks were
stressed. Where as only few respondents felt that they were not stressed.
TABLE:2
CAUSES OF STRESS
Variables % of Respondents
Role Conflict 09
Feeling of Inequality 06
Role Ambiguity 05
Role overload 22
Lack of Supervisory Support 07
Constraints of changes, Rules & Regulations 11
In adequacy of Role 05
Lack of group Authority Cohensiveness 04
Job Requirements Capability Mismatch 13
Stress due to technological problems 18
From Table:2 it is indicates that Major causes of stress among the bank employees are excess of work
load (22%) and stress due to Technological problems. (18%) Hence it was found that employees felt
that taking severe work pressure, as they were expected to handle multiple roles and responsibilities,
the employees suffer from stress because of lack of support from the management and colleagues.
TABLE : 3
VARIOUS ATTRIBUTES OF STRESS
Various Attributes of stress % of Respondents
Inadequate time to finish work 07
No ability and skills 06
Hard work and skill are not approved 12
Poor infrastructure facilities 08
Unhealthy Environment 09
Communication gap 16
Work life Imbalance 37
Economic Status 05
The above table depicts the various attributes relates to stress, work life imbalance is one of the major
attributes which contributes to stress for an employee. This can be regarded as a factor building of
stress because a lot of employee complained that they were unable to balance both the personal and
professional fronts successfully. Extra more pressures and demands from work environment at times
led to neglect of personal front.
324
TABLE : 4
STRESS LEVEL OF BANK EMPLOYEES
Level of stress % Respondents

Good Environment 16
Recognition 21
Continuous Job Training 11
Effective Communication 13
Programme on stress management 13
Meditation 26
From the above table shows that meditation from an integral part of the science of yoga, has a direct,
positive impact on the mind giving it strength and power to resist stress. Moreover, around (21%) of
the respondents as acknowledging peoples value is especially important in times of stress the above
analysis the initiatives taken by the banks to reduce stress are by providing good Environment
continuous job Training proper commutate and conducting effective stress management programmes.
TABLE: 5
ANALYSIS OF PSYCHOLOGICAL PROBLEMS
Psychological problems % of Respondents
Anxiety 21
Tension 18
Sleeplessness 15
Boredom 12
Frustration 12
Depression 8
Fear 8
Forget fullness 6
From the Table:5 shows that majority of the respondents psychologically affects stress on Anxiety and
Tension (21% and 18%),The 8% respondents are affected depression and fear. But in the case of 15%
respondents affected due to sleeplessness.
TABLE :6
ANALYSIS OF HEALTH PROBLEMS.
Health problems % of Respondents
Cold 23
Backache 18
Headache 16
Digestive problems 09
Diabetes 07
Ulcer 11
Blood Pressure 11
Heart Disease 05
From Table:6 it is indicates that health problem of employees cold and Back ache & Headache. (23%
and 18%). The 7% of respondents an affected digestive problems and Heart disease, but in the case of
11% of respondents affected due to ulcer and Blood pressure.
325
About 93% of the respondents behind that they face high level of stress, which may be
due to both professional and personal reasons.
The respondents were over burdened with workload in their work place.
Work life imbalance is one of the major attribute which contributes to stress for an
employee.
Psychological problems of Anxiety and Tension affect the employees more at work
place.
The researcher identified few initiatives for effectively handing stress meditation was
found to be the integral part of life to reduce stress.
SUGGESTION AND RECOMMENDATIONS
1. Take adequate steps to redesign jobs, which are taking to employees abilities and capacities.
2. To reduce the work load, role slimming and role adjustment process should be resorted to.
3. Encourage the cross functional and inter department work arrangement to reduce work related
stress among low performance and low achievers.
4. Adequate role clarifications to be made whenever necessary to eliminate role ambiguity.
5. Introduce more job oriented training programmes which improve employees skill and their
confidence to work effectively.
6. Encourage open channel of communication to deal work related stress.
7. Adequate resources i.e. material technical and human, should be extended to make employee feel
safe and secure per for their work effectively.
8. Undertake stress audit at all levels in the organization to identity stress are improving conditions
of job and alleviating job stress.
9. Ensure justified use of grievance handling procedures to win trust and confidence of employees
and reduce their anxiety and tension related to job related problems.
10. Formulate HRD interventions and individual stress alleviations program.
11. Introduce Pranayam ( Brain stilling and control of vital force) as a holistic managerial strategy
to deal with occupational strategy.
12. Provide counseling on work related and personnel problems and support from a team of welfare
health and counseling staff.
13. Attractive system of reward and recognitions of good work.
14. Ensure an organizational climate with career planning and career growth to ensure further the
retention of talented employees.
15. Encourage management to practice proactive approaches rather than reactive approaches as a
strategic step.
CONCLUSION
The problem of stress is inevitable and unavoidable in the banking sector, A Majority of the
employees face severe stress related aliments and a lot of psychological problems. Hence, the
management must take several initiatives in helping their employees to overcome its disastrous effect.
Since stress in banking sector is mostly due to excess of work pressure and work life
imbalance the organization should support and encourage to take up roles that help them to balance
work and family.
The productivity of the force is the most decisive factor as far as the success of organizations
is concerned. The productivity in turn is dependent on the psychosocial well being of the employees. In
an age of highly dynamic and competitive world, man is exposed to all kinds of stressors that can affect
him on all realms of life. The growing importance of intervention as strategies is felt more at
organizational level. This particular research was intended to study the impact of occupational stress on
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Nationalised Bank Employees. Although certain limitations were met with the study, every effort has
been made to make it much comprehensive.
REFERENCE:
1. Ahmed S. Nurala, B.S. (1985) A study of stress among executives Journal of personality
and clinical studies, Vol.1 No (2) pp.47-50.
2. Gender difference in stress among bank officers of private and public secter. ICFA1 journal of
marketing research. Vol. VIII No.2009. PP 63-69
3. Selye H. (1974) Stress without Distress Harper and Row publications U.S. A
4. Bajpai B.L. (1992) Stress management Financial Express Bombay June.
5. Shailendra Singh (1990) Organisational Stress and executive Behaviour sreeram centre for
Industrial Relation and Human Resources, New Delhi.
6. Akchilendra K.Singh and A.P.Singh. Role of stress and organisational support in predictivity
organizational citizenship Behavior, The IUP journal of organizational Behaviour Vol IX
No.4 2010.
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KNOWLEDGE MANAGEMENT
Ms.M.Gunasundhari, MBA, Assistant Professor, Vel Tech multi tech Dr.Rangarajan Dr.Sakunthala
Engg College, Department of Management Studies, Avadi, Vel Tech Road, Chennai.
R.Saranya, MCA, Lecturer, Vel Tech Ranga Sanku Arts College, Department of MCA, Avadi, Vel
Tech Road, Chennai.
ABSTRACT
Knowledge management is key to the effective management of information, and also to its
protection and validation. Companies seeking to compete in the new age of uncertainty, of which open
source data is but one symptom, need to focus on creating the necessarily levels of trust and security
that will secure their human assets. In brief, knowledge and information have become the medium in
which business problems occur. As a result, managing knowledge represents the primary opportunity
for achieving substantial savings, significant improvements in human performance, and competitive
advantage. Information warfare techniques have already transferred in varying degrees into the
commercial sector and this trend will increase in direct proportion to the pervasiveness of computing.
As computer systems increase in intelligence they will compensate for this lack of management
understanding. There are potentially massive benefits for those organizations that are at the forefront of
these techniques. Organizations need to create a necessary level of self-awareness to combat this, while
avoiding the paralysis of paranoia. Treating knowledge management as a technique to codify
knowledge and share it on databases is just not good enough in these circumstances. Knowledge
management strategies of this type would bring back the ghost of the infamous, and none too far in
time, re-engineering days, when the corporate motto was More IT, less people!; they conjure grim
scenarios of organizations with enough memory to remember everything and not enough intelligence to
do anything with it.
Nowadays information technologies are as much about creating direct connections among
people through such applications as electronic mail, chat-rooms, video-conferencing and other types of
groupware as they are about storing information in databases and other types of repositories. More
recently, electronic databases, audio and video recordings, interactive tools and multimedia
presentations have become available to extend the techniques for capturing and disseminating content.
Although these tools are not yet everywhere available in the developing world, they are spreading
rapidly and present a unique opportunity for developing countries to benefit most from the
technological revolution now unfolding: low-cost telecommunications systems can help countries to
leapfrog ahead through distance education, distance health services, and much better access to markets
and private sector partners abroad.
Knowledge Management An Introduction

Knowledge Management refers to a range of practices and techniques used by organizations to
identify, represent and distribute knowledge, know-how, expertise, intellectual capital and other forms
of knowledge for leverage, reuse and transfer of knowledge and learning across the organization.
Knowledge management programs are typically tied to organizational objectives and are intended to
lead to the achievement of specific business outcomes such as improved performance, competitive
advantages, or higher levels of innovation. Knowledge management is an evolving discipline. While
knowledge transfer has always existed in one form or another, for example through on- the-job
discussions with peers, formally through apprenticeship, the maintenance of corporate libraries,
professional training and mentoring programmes, and since the late twentieth century- technologically
through knowledge bases, expert system, and other knowledge repositories, knowledge management
programs claim to consciously evaluate and mange the process of accumulation, creation and
application of knowledge which is also referred to by some as intellectual capital.
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Approaches to Knowledge management
There is abroad range of thought on knowledge management with no agreed definition current
or likely. The approaches varying by author and school. For example, knowledge management may be
viewed form each of the following perspectives:
Techno centric: Focus on technology, ideally those that enhance knowledge sharing/ growth,
frequently any technology that does fancy stuff with information.
Theoretical: Focus on the underlying concept of knowledge creation, transmission, transformation and
others.
People view: Focus on bringing people together and helping them exchange knowledge.
Process view: Focus on the processes of knowledge creation, transmission, transformation, and others.
Organizational: How does the organisation need to be designed to facilitated knowledge processes?
Which organizations work best with what processes?
Ecological: Seeing the interaction of people, identity, knowledge and environment factors as a
complex adaptive system.
Combinatory: Combining more than one of the above approaches where possible without
contradiction
Why we need knowledge management now?

Ann Macintosh of the Artificial Intelligence Applications Institute (University of Edinburgh)
has written a "Position Paper on Knowledge Asset Management" that identifies some of the specific
business factors, including:
Marketplaces are increasingly competitive and the rate of innovation is rising.
Reductions in staffing create a need to replace informal knowledge with formal methods.
Competitive pressures reduce the size of the work force that holds valuable business
knowledge.
The amount of time available to experience and acquire knowledge has diminished.
Early retirements and increasing mobility of the work force lead to loss of knowledge.
There is a need to manage increasing complexity as small operating companies are trans-
national sourcing operations.
Business strategies related to knowledge management

As you explore other explanations of knowledge management Bo Newmans Knowledge
Management Forum is a good starting point youll detect connections with several well-known
management strategies, practices, and business issues, including
Change management
Best practices
Risk management
Benchmarking
IT tools for knowledge management.

Nowadays information technologies are as much about creating direct connections among
people through such applications as electronic mail, chat-rooms, video-conferencing and other types of
groupware as they are about storing information in databases and other types of repositories. More
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recently, electronic databases, audio and video recordings, interactive tools and multimedia
presentations have become available to extend the techniques for capturing and disseminating content.
Electronic technology for transferring knowledge: The availability of the World Wide Web has
been instrumental in catalyzing the knowledge management movement. Information technology may,
if well resourced and implemented, provide a comprehensive knowledge base that is speedily accessed,
interactive, and of immediate value to the user. However there are also many examples of systems that
are neither quick, easy-to-use, problem free in operation, or easy to maintain. The Web, for example,
frequently creates information overload.
Records Management: Management (planning, controlling, directing, organizing) of knowledge,

information, and data records, and their creation, maintenance, and use. Such records can include both
hard (books, papers, maps, photographs, machine-readable documents) and soft (electronic and
software) materials, regardless of physical form or characteristics.
Web Site: A file of information located on a server connected to the World Wide Web (WWW).
WWW protocols and software allow the global computer network (the Internet) to display multimedia
documents. Web sites may contain text, photographs, illustrations, video, music, or computer
programs.
Conclusion:
Knowledge management is key to the effective management of information, and also to its
protection and validation. Information warfare techniques have already transferred in varying degrees
into the commercial sector and this trend will increase in direct proportion to the pervasiveness of
computing. As computer systems increase in intelligence they will compensate for this lack of
management understanding. There are potentially massive benefits for those organizations that are at
the forefront of these techniques. Organizations need to create a necessary level of self-awareness to
combat this, while avoiding the paralysis of paranoia. Treating knowledge management as a technique
to codify knowledge and share it on databases is just not good enough in these circumstances.
Companies seeking to compete in the new age of uncertainty, of which open source data is but one
symptom, need to focus on creating the necessarily levels of trust and security that will secure their
human assets.
REFERENCES:
Ford, N. "From Information- to Knowledge-Management," Journal of Information Science

Principles & Practice
Hannabuss, S. "Knowledge Management," Library Management
www.kmworld.com
www.woodheadpublishing.com
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TALENT MANAGEMENT :CHALLENGES TO HRM
Lekha.H,MBA,M Phil ,Asisstant Professor,Department of Management Studies
,Adi Shankara Institute Of Engineering And Technology, Kalady ,Kerala
The term Talent management has received much academic and practitioner attention since
Mckinsey published the paper war of talent in the late 1990s.global multinational companies now
concentrate on talent management ,not just to create a pipeline of talent for responding to shifting to
demographics and workforce flexibility but also to revitalize and retain their existing talent. This will
enable MNCs to align workforce planning with their business objectives such as entering into new
partnerships, adapting new technologies and globalizing their operations on a large scale. Firms have
started to realize that more than offering competitive prices, capturing niche markets and developing
new products, a highly talented and engaged workforce is something that competitors cannot replicate
so easily. Talent management is clearly the key to survival and sustainable competitive advantage in
the fiercely competitive market of this globalised era.
Talent todays world is hard to locate. It is sometimes hidden or overridden by daily pressures
of doing business. A study conducted by a global consultancy reveals that the most important corporate
resource over the next 20 years would be talent. Talent management implies recognizing a person's
inherent skills, traits, personality and offering him a matching job. Every person has a unique talent that
suits a particular job profile and any other position will cause discomfort. Now HR professionals are
expected to not only identify and attract relevant talent, but are also expected to nurture, groom and
retain it to effectively achieve the organizational objectives. This made HR manager to find innovative
ways to effectively manage and win this war of talent.
The challenge
The challenge of talent management has two facets to it. First is how to find new people and
second is how to retain the present workforce. Each of the challenges has to be tackled in the most
efficient way possible so that the organization can achieve its objectives.
1. Where to find new talent?

Organizations now have to find ways to sell their brand to prospective talent in ways which
enable personnel development, in conjunction with the goals of the organization. If we scan the
environment, we find there is a shortage of skilled workforce that can be employed. Some of the
possible reasons that have led to the shortage are:
2. How to retain the existing employees?

Nurturing the right talent - companies need to devise strategies to ensure long run commitment of the
skilled people. It is a fact that its the people that add value to organizations. People need to move on
for one reason or another, and the Organization stands to lose.
Reasons behind the massive attrition rates

a. Gap between organizational values and goals and the personal values and goals is one of the
major reasons of the attrition rates.
b. Working environment is another major factor.. Failure on the part of the management to provide
good working environment will result in a talented employee leaving the organization.
c. The competitive world has made sure that there is high work pressure on the employees of any
organization. This has led to psychological problems like stress, and in extreme situations, total
burnouts.
Employees who leave the organization take along with them valuable information regarding
the company, its customers, current projects and other confidential data. Retaining the present
employees is of the foremost importance to the organizations because; the company would have
already incurred heavy costs in the form of training and development. Now if the organization has to
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look for a replacement for the employee who has left, it involves a lot of costs like - hiring costs,
training costs and the induction costs.
Employee retention plan (creating 5 stage employee retention plan )

a. ATTRACTION marketing your own product is not just enough, as a thought now should be
given to market your image as an employer. Your brand reputation as an employer and what others
think of you has a significant role in attracting and picking up top-notch people. Creating an attraction
in terms of place of employment will pull a lot of interested qualified applicants.
b. HIRING hiring process is not about including those whom we end up hiring but anyone
whom the employer has interviewed for your organization is a part of this period. Handling the
applicants that have been rejected also reflected your repute as an employer.
c. ON-BOARDING-cementing new hires to your organizations is the key component of on

boarding plan of any organization who wants too create an emotional connection that will make them
connected to their role, their managers and also to the team as a whole. The first 90 days of a new
employee is all about connections. and as per researches conducted an employee makes up his/her mind
whether or not they will stick to the job with in the first week
d. LENGTH OF STAY-training and development, rewards and recognition along with fun at
work can contribute a lot in making people stay for long. also the top management should relies that the
bulk of training time should be spent on equipping their mid level managers in creating an engaging
place of work.
CONCLUSION
Todays dynamic global business environment, together with the ever-growing, challenge of a
highly mobile workforce, requires a well planned, meticulous approach towards talent management.
The current discussions about skill shortages and the ageing population are also helping organizations
to focus on the talent management issue. I t may not be possible to simply go out and recruit new
people to meet operational needs. Many leading companies have decided to develop their own people,
rather than trying to hire fully skilled workers. In summary, every organization should be implementing
talent management principles and approaches. Fortunately both HR and business leaders recognize that
talent is a critical driver of business performance.
REFERENCES
1. D.KRibfin jain,Recent Trends in Talent Acquisition and retention, management trends ,vol4
no.2,april 2007-sept 2007
2. P.B.S. KUMAR An article on talent management
3. NR.Aravamudhan ,Talent management ,a critical imperative for organization,HRM review ,feb 2010
4. Garima Bardia, Making Talent count-Gearing up to face the challenges of talent management, HRM
review aug 2010
5. Berger,Dorothy,2004 Talent management handbook
6.Deloitte,generational talent management for insurers, www.deloitte.
com/us/talentpov.
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LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING
M. Jola, Research Scholar, Karpagam University, Coimbatore -21.
Dr. N. Shani, Akshya Institute of Management Studies, Coimbatore.
INTRODUCTION
Leadership deveopment refers to any activity that enhances the quality of leadership within an
individual or organization. Leadership development has focused on developing the leadership abilities
and attitudes of individuals. A good personal leadership development program should enable you to
develop a plan that helps you gain essential leadership skills required for roles across a wide spectrum
from a youth environment to the corporate world. Succession planning is a process for identifying and
developing internal people with the potential to fill key business leadership positions in the company.
OBJECTIVES OF SUCCESSION PLANNING:

Identify those with the potential to assume greater responsibility in the organization
Provide critical development experiences to those that can move into key roles
Engage the leadership in supporting the development of high-potential leaders
Build a data base that can be used to make better staffing decisions for key jobs
Improve employee commitment and retention
Meet the career development expectations of existing employees
Counter the increasing difficulty and costs of recruiting employees externally
THE SUCCESS OF LEADERSHIP DEVELOPMENT EFFORTS HAS BEEN LINKED IN

THREE VARIABLES:
Individual learner characteristics
The quality and nature of the leadership development program
Genuine support for behavioral change from the leader's supervisor.
KEY CONCEPTS OF LEADERSHIP DEVELOPMENT:
Experiential learning: Positioning the individual in the focus of the learning process, going through
the four stages of experiential learning as formulated by David A. Kolb: 1. concrete experience 2.
Observation and reflection 3. Forming abstract concept 4. Testing in new situations.
Self efficacy: The right training and coaching should bring about 'Self efficacy' in the trainee, as Albert
Bandura formulated: A person's belief about his capabilities to produce effects
Visioning: Developing the ability to formulate a clear image of the aspired future of an organization
unit.
CHARACTERISTICS OF LEADERSHIP DEVELOPMENT:

Taking responsibility
Gaining focus
Developing life purpose
Starting action immediately
Developing effective and achievable goals and dreams.
THE STEPS OF SUCCESSION PLANNING:

1. Establish knowledge, skills, and abilities needed at each leadership level
2. Identify a pool of qualified candidates for various leadership roles
3. Assess candidates for respective leadership positions
4. Implement individual development plans
5. Select leadership replacements as positions become available
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DEVELOPING LEADERSHIP SKILLS FORTHE NEW IN THE WORKPLACE
It is never too early to start developing leadership skills. As someone new in the workplace,
you may aspire to become the leader of your organization some day. Some people believe leaders are
born and not made.
1. Integrity
Leaders have high ethics. They are honest. If you are to gain people's trust then it is important
to learn this trait early. Some of the actual situations you can practice this behavior is taking
responsibility for your own actions. Do not play the blame game when things go wrong. Leaders take
personnel responsibility for their teams actions and results.
2. Passionate
Leaders are passionate. They are enthusiastic about their work and they even have the ability
to rub this energy off on their followers. Do you take on assignments given to you enthusiastically?
This is one good behavior to start when developing leadership skills.
3. Commitment
When developing leadership skills, look at the easiest to start. Commitment to your work is
one of the easiest. Can you truly say you are willing to work hard at the job assigned? Leaders work
hard and have a strong discipline in following through with their work.
4. Courageous
If people are to follow you then as a leader you need to be courageous. Leaders are brave
when they confront risks and the unknown. The ultimate test of a leaders courage is also the courage
to be open. When looking at developing leadership skills, do you have the courage to speak up on
things that matter?
5. Goal Oriented
Leaders are very focused on the objectives that need to be attained. They develop a plan and
strategy to achieve the objectives. In addition, they will also need to build commitment from the team
and rally them to achieve the organizations goal. When developing leadership skills, start by looking
at how goal oriented. Improve upon that behavior.
IMPORTANT PRINCIPLES OF LEADERSHIP:

1. Always, when leaders say that the people are not following, it's the leaders who are lost, not
the people.
2. Leaders get lost because of isolation, delusion, arrogance, plain stupidity, etc., but above all
because they become obsessed with imposing their authority, instead of truly leading.
3. Incidentally, leading is helping people achieve a shared vision, not telling people what to do.
4. It is not possible for a leader to understand and lead people when the leader's head is high in
the clouds or stuck firmly up his backside.
5. That is to say - loyalty to leadership relies on the leader having a connection with and
understanding of people's needs and wishes and possibilities. Solutions to leadership challenges do not
lie in the leader's needs and wishes. Leadership solutions lie in the needs and wishes of the followers.
6. The suggestion that loyalty and a following can be built by simply asking or forcing people to
be loyal is not any basis for effective leadership.
7. Prior to expecting anyone to follow, a leader first needs to demonstrate a vision and values
worthy of a following.
8. A given type of leadership inevitably attracts the same type of followers. Put another way, a
leadership cannot behave in any way that it asks its people not to.
9. In other words, for people to embrace and follow modern compassionate, honest, ethical,
peaceful, and fair principles, they must see these qualities demonstrated by their leadership.
10. People are a lot cleverer than most leaders think.
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THE PROCESS OF LEADERSHIP DEVELOPMENT:
CONCLUSION:
Leadership development programmes must be deployed throughout the organization so that

each and every function has leaders at different levels, so that whole organization moves ahead at the
same pace. Further, job rotation for high potentials is an important tool for acclimatizing them of
different functions in the organization and the development is truly all round. Leadership everywhere
must be the motto. Any gaps in depth and width of deployment of leadership development will show
off as the dead weight that the company may have to carry in future. Succession planning increases the
availability of experienced and capable employees that are prepared to assume these roles as they
become available. To achieve outstanding results using succession planning, an organization must
develop an effective and highly focused strategy that centers on organizational excellence. The
succession of a leader is a central event in the life of any organization.
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EVALUATION OF EFFECTIVENESS OF EXIT INTERVIEW: A STUDY WITH
REFERENCE TO IT SECTOR IN CHENNAI CITY
C.Senthil Kumar.,M.Com., M.Phil., M.B.A., (Ph.D) Ph.D., Research Scholar, University of Madras,
Chennai-05
ABSTRACT:
A well-orchestrated plan of exit surveys, in combination with other HR initiatives related to
maximizing employee attitudes and behaviour, has the potential to become a valuable tool to help
reduce turnover and increase employee satisfaction and commitment. In turn, an effective reduction in
turnover has clear economic and organizational benefits that can more than pay back the investment
made in an exit survey system. Complete globalization of employee exit practices at a given company
or throughout the broad service industry may not be possible, but we present a basic framework for
employee exits that serves as a catalyst for global or regional hiring guidelines and support. The goal is
to outline a set of guidelines that define a scalable process whereby closure on employees is
maximized. Once this process is in place, offices or divisions are at their discretion to tailor and modify
the process to meet specific needs.
An Employee Exit process that incorporates the four elements of transfer of employee
knowledge, completing operational responsibilities, administering a standardized Employee Exit
Survey and conducting an Employee Exit Survey maximizes proper closure for both the organization
and departing employee, while simultaneously fostering positive and professional ties between the two.
On an operational level, proper Employee Exits also provide an opportunity for organizations to learn
how to improve their performance. Forward-thinking companies must continually evaluate and
question the assumptions behind their business and HR practices. Therefore, it is necessary to take time
to review and, if needed, modify the current employee exit practices. A well designed and
implemented Employee Exit process is an investment in time and resources that can definitely make a
healthy contribution to the bottom line and company culture. An attempt has been made to draw the
conclusion about the evaluation of effectiveness of exit interview: a study with reference to it sector in
Chennai city. The study will help us to understand the present strategies employed and problems
associated and ways and means to improve the IT corporate employee.
INTRODUCTION
Exit interviews "are often an effective tactic to understand why people are leaving and how to
most effectively enhance retention".
Elsdom (2000) Definition: Everyone knows that employee turnover is expensive, which is
why it's important to know that "exit interviews have proven to be a very effective way to gather the
necessary data to take corrective action at a very low cost"
TALENT MANAGEMENT -BIGGEST CHALLENGE TODAY

The following points are the business challenges
Competitive Threats
Declining Margins
Financial Pressures
Limited Supply of Talent
Major Regulatory Changes
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WHY PEOPLE LEAVE- FEW EXPRESSIONS
Rank Physicians View IT View Others View
1 Stress Stress Stress
2 Base Pay Base Pay Base Pay
3 Length of Commute Work/life Balance Promotion Opportunity
4 Promotion Opportunity Trust/confidence in Work/life Balance
Management
5 Trust/confidence in Length of Commute
Length of Commute
Management
[Source: Watson Wyatt & ASHHRA, 2008/9 Work Attitudes Research]
Does your organization experience higher than normal employee turnover?

Lastly, we look at feedback question number seven, where the research scholar tries to
determine the respondent's professional opinion of whether or not exit interviews have benefited their
department, and in what way. Another overwhelming response in support of the benefits of exit
interviews is shown in figure number four, with 83% of those in favour of the process. Some of the
respondent's comments in support of the exit interview process include:
Identifies weaknesses or blind spots;
Determines possible personnel or management issues that may need attention;
Improves employee volunteer/research relations;
Opens eyes to potential problems and provides a course of how to fix them;
RETENTION AND WORK LIFE BALANCE INITIATIVES

Some work life balance initiatives that you can implement are:
Compressing Workweeks
Days Off
Family Care Leave
Flexi-hours
Telecommuting/Work From Home Options
Most of these initiatives require technology and setting expectations. For example, if an
employee is working from home, you need to provide the necessary technology to enable him or her to
complete the assigned work. You'd probably provide broadband access, a laptop, and access to video
conferencing facilities. Employees should also be informed when they are required in person at the
office location because some tasks require the employee to be present. For example, a Technical
Architect might be required for a workshop with the client during requirements gathering. Setting
expectations is the key.
HR MANAGER SOME IMPLICATIONS

Turnover is expensive, including both tangible and intangible costs, with estimates of the costs
of turnover ranging from 50% - 200% of an employees annual salary. Excessive employee turnover is
often cited as a key barrier to high quality service. Turnover reduces the productivity of an entire work
unit/team, particularly as a result of uncompensated extra workloads, the stress and tension caused by
turnover and, as a result, a decline in corporate morale.
CONCLUSION
HR professional is having a big responsibility to hire a best person from the available talent
pool. At the same time, one needs to be cost conscious. It is a good practice in recruitment to be
objective and seek to identify the candidates' abilities. Judge on individual merits and set the same
standards for all. Whereas generalized assumptions made about ability or ambition, based on
applicant's sex, caste, age, religious belief, sexual orientation or any disability, is a bad practice. One
337
need to use the technology, to get the best results from recruitment process. A well-orchestrated plan
of exit surveys, in combination with other HR initiatives related to maximizing employee attitudes and
behaviour, has the potential to become a valuable tool to help reduce turnover and increase employee
satisfaction and commitment. In turn, an effective reduction in turnover has clear economic and
organizational benefits that can more than pay back the investment made in an exit survey system.
With the market opening up, promotions, onsite opportunities and career growth would be the focus for
any HR Manager.
REFERENCES
Campion, M. A. (1991). Meaning and Measurement in Turnover: Comparison of Alternative

Measures and Recommendations for Research. Journal of Applied Psychology, 76: 199-212;
Ledger, W. (2002). The Growing Trend of the Exit Interview. The Evening Standard.
Hinrichs, J. R. (1975). Measurement of Reasons for Resignation of Professionals:
Questionnaire Versus Company and Consultant Exit Interviews. Journal of Applied
Psychology, 60, (4): 530-532; Hellweg, S. A. & Phillips, S. L. (1981). An Examination Of
Current Exit Interviewing Practices In Major American Corporations (Report No. CS-503-
407). San Diego, California: Department of Speech Communication, San Diego State
University
HR Executive Editorial Survey (2002). Workplace Turnover Study. Human Resource
Executive Magazine
HR Executive Editorial Survey (2002). Workplace Turnover Study. Human Resource
Executive Magazine
Kammeyer, J. D., Wanberg, C. R., Glomb & Ahlburg, D. (ND). Turnover Processes in a
Temporal Context: Its About Time
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HUMAN RESOURCE MANAGEMENT CHALLENGES AND ISSUES
IN BANKING SECTOR IN INDIA
C.Loganathan, Department of Management,
Dr.A.Valarmathi, Professor, RVS-IMS, Kannampalayam, Coimbatore
ABSTRACT
Now days, organizations operate in a complex and changing environment that greatly
enhances or influences their growth and expansion. To cope up with this changing environment and
technological advancement organizations need to develop and train their employees. In addition the
survival and growth of any organization depends on the quality of human resources of the
company.HRM is especially important in industries with rapidly changing technology such as banking
industries. Indian Banking system has played a crucial role in the socio-economic development of the
country. The system is expected to continue to be sensitive to the growth and development needs of all
the segments of the society. The banking system that will evolve will be transparent in its dealings and
adopt global best practices in accounting and disclosures driven by the motto of value enhancement for
all stakeholders. This paper develops propositions for Challenges and issues for the strategic
management of human resources to prepare organizations for the challenges of globalization. It briefly
discusses the responses on human resources management Challenges and issues for the strategic
management and employee relations and the rise of Human Resource Management in banking sector.
Key Words: HRM in banking sector, Challenges and issues, Strategic HRM, Changing
Competencies.
Introduction
The role of the Human Resource Management in banking sector is evolving with the change
in competitive market environment and the realization that Human Resource Management must play a
more strategic role in the success of a bank. The banks that do not put their emphasis on attracting and
retaining talents may find themselves in dire consequences, as their competitors may be outplaying
them in the strategic employment of their human resources. With the increase in competition, locally or
globally, banks must become more adaptable, resilient, agile, and customer-focused to succeed and
with this change in environment, the HR professional has to evolve to become a strategic partner, an
employee sponsor or advocate, and a change mentor within the bank. In order to succeed, HR must be a
business driven function with a thorough understanding of the banks big picture and be able to
influence key decisions and policies. (Milkovich, George, Boudrean & John 1991) In general, the focus
of todays HR Manager is on strategic personnel retention and talents development. HR professionals
will be coaches, counselors, mentors, and succession planners help to motivate the banks members and
their loyalty. The HR manager will also promote and fight for values, ethics, beliefs, and spirituality
within their organizations, especially in the management of workplace diversity.
Meaning of "Human Resource" in banks

Human resource is one of the natural resources of any country's economy. It is the wealth of
the country. In the context of banking, human resource is of greater importance. The deployment of
human resource through proper and efficient selection, training and development, is called Human
Resource Management. The success of any bank largely depends on efficient human resource
management, apart from operations, marketing and sales, the HR department manages all the efficient
people working in operations and marketing divisions in any organization. (Chatterjee & Bhaskar
1990)
Need for HRM in banks

There is a qualitative change in the banking paradigm on account of changes in the industry
due to the entry of new private sector Banks. Therefore, it has become a necessity to recruit, train and
deploy people at all level efficiently, for better performance and success. This is the basic function of
HRD, which includes the concept of HRM. (Ng & Maki 1993)A view of the changes in the political
scene in the recent past, seeping changes is expected to take place in the banking industry. It is
339
expected that only a few banks will remain after a series of HRM changes (competency), not only in
the Indian banking industry, but also at the international level. (Ahuja 1998)Emergence of new private
sector banks, disintermediation and competition and self-regulation in monitoring banking has
necessitated efficient Human Resources Management. HRM is a continuous process, involving
selection, recruitment and training on an "on going basis" for the staff and their deployment in the right
place. The activity is called HR development. ( Mondy, Wayne and Robert 1990)
Human Resource Management Challenges and issues in Indian banks

The coming of the globalization poses distinctive HRM challenges to businesses especially those
operating across national boundaries as multinational or global enterprises.
Managing the Vision of the bank: Vision of the bank provides the direction to business
strategy and helps managers to evaluate management practices and make decisions. So vision
management becomes the integral part of Man management in future.
Internal environment: Creating an environment which is responsive to external changes,
providing satisfaction to the employees and sustaining through culture and systems is a challenging
task. To meet the changes in legal environment, adjustments have to be made to the maximum
utilization of human resources. (Brewster and Richbell 1984)
Smart training budget management: The training will not be for every single employee.
Only the top potentials and key employees will be allowed to get any training and the HRM function
has to be smart in the training budget management and it is a challenging one in Indian banking
.(Mauri1997).
Technical expertise: To acquire the technical expertise the focus should be on the future
human resource management given the changing paradigm of banking sector regulations.
CHANGING COMPETENCIES FOR EFFECTIVE HRM IN BANKING

Old Competencies New Competencies
1. Ability to operate in well defined and Ability to operate in ill-defined and ever changing
stable environment environment.
2. Capacity to deal with repetitive straight- Capacity to deal with routine and abstract work
forward and concrete work process process
3. Ability to operate in a supervised work Ability to handle decisions and responsibilities
environment
4. Isolated work Group work, Interactive work
5. Ability to operate within narrow System-wide understanding, ability to operate
geographical and time horizons within expanding geographical and time horizons
6. Broad unspecified knowledge Specialized knowledge
7. Procedural competencies Customer assistance oriented competencies.
CONCLUSION
The core function of HRM in the banking industry is to facilitate performance improvement,
measured not only in terms of financial indicators of operational efficiency but also in terms of the
quality of financial services provided. Factors like skills, attitudes and knowledge of the human capital
play a crucial role in determining the competitiveness of the financial sector. The quality of human
resources indicates the ability of banks to deliver value to customers. Capital and technology are
replicable but not the human capital which needs to be valued as a highly valuable resource for
achieving that competitive edge. The primary emphasis for the banks needs to be on integrating
strategic human resource management with the business applications. Indian banks should bring the
Strategic HRM strategies include managing change, creating commitment, achieving flexibility and
improving teamwork. The other processes representing the overt aspects of HRM, viz. recruitment,
placement, performance management are complementary. Now days, organizations operate in a
complex and changing environment that greatly enhances or influences their growth and expansion. To
cope up with this changing environment, bringing the new competencies and technological
340
advancement organizations need to develop and train their employees. In addition to the survival and
growth of any bank depends on the quality of human resources. Skills and knowledge can easily
become obsolete in same way as machines or technology. So if an organization is to survive these must
be constantly kept up to date through effective HRM programs. HRM is especially important in
banking industries in Ethiopia.
Acronyms Used
HRD- Human Resource Development
HRM- Human Resource Management
SHRM- Strategic Human Resource Management
HR- Human Resource
REFERENCES
Ahuja, K. K.,(1998). Personnel Management, (New Delhi: Kalyani Pub.,).pp 234-38.

Brewster, C. and Richbell.,(1984). Personnel Management, (New Delhi: Sterling Publishers
Private Ltd., Inc.,) pp 34-37.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
Management, vol. 20, no. 4, pp 99-120.
Barney,J.B. & Wright, P.M. (1988). On becoming a strategic partner: The role of human
resources in gaining competitive advantage. Human Resource Management, vol. 37, no. 1,
pp 31-46.
Chatterjee, Bhaskar, (1990).Human Resource Management, (New Delhi: Sterling Publishers
Private Ltd., Inc.,)
Greer, C.R. (1995). Strategy and Human Resources: A General Managerial Perspective. New
Delhi Prentice Hall.
Gerhart, B. & Milkovich, G.T.(1990). Organizational differences in managerial compensation
and financial performance. Academy of Management Journal, vol. 33, no.5, pp 20-24.
Golden, K.A. & Ramanujam, V. (1985). Between a dream and a nightmare: On the integration
of human resource management and strategic business planning. Human Resource
Management, vol. 24, no. 4, pp 29-52.
Konczackiz.A., (1962). Currency and Banking in Ethiopia. The South African Journal of
Economics, vol. 30, no.3, pp 10-14.
Milkovich, George T. & Boudrean, John W., (1991). Human Resource Management, (USA:
Richard D. Irwing, Inc.,).
Mondy, R. Wayne & Noe, Robert M., (1990). Human Resource Management, (Massachusetts:
Simon & Schuster, Inc.,).
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IMPACT OF TALENT MANAGEMENT PRACTICES IN CHENNAI COMPANYS
Dr.A.Velanganni Joseph., Asst Prof., Anna University of Technology, Tiruchirappalli.,
A.Vanitha.,Asst Prof, St.Micheal College of Eng. And Tech., Kalayarkovil
INTRODUCTION:
Talent Management is beneficial to both the organization and the employees. The organization
benefits from: Increased productivity and capability; a better linkage between individuals' efforts and
business goals; commitment of valued employees; reduced turnover; increased bench strength and a
better fit between people's jobs and skills. Employees benefit from: Higher motivation and
commitment; career development; increased knowledge about and contribution to company goals;
sustained motivation and job satisfaction. Human resources have a compelling mission to provide
value added services; however, this expectation is often hard to describe. Here, some successful
strategies are examined in the areas of talent retention, growth and employee engagement. The Present
study examined the perceptions of Talent Management Practices of 40 employees and seven top
managers in a major Chennai company with reference to international best practice. Furthermore, there
was misalignment between the perception of employees and top managers, particularly on the themes
of transparency, competency models and communication. Company talent strategy focused more
resources on perfecting the Talent Management Practices on the Executive Talent Pool rather than
throughout the organization Furthermore, top managers were more focused on the implementation of
the strategy itself rather than on measuring its impact on business performance.
STATEMENT OF THE PROBLEM:

Talent management is an international human resources strategy that seeks to identify,
develop, deploy and retain talented and high potential employees in an organization. Although talent
management practices may be applied in Chennai companies, they can only contribute optimally to
business performance if both top management and employees are aligned on its objectives and the way
in which it is implemented in the organization. However companies are employees and top
management misalignment between the perception of employees and top management. Identification of
areas of misalignment in the context of the six major themes of Talent Management Practices is thus
essential for realizing the potential benefits of this human resources strategy.
IMPORTANCE OF THE STUDY

Accordingly the information generated from this study will be useful for the organization as it
will assist top management in their efforts to ensure that talent management practices as defined by the
policies, procedures and processes are well understood and help to retain employees. In addition the
research could assist in identifying suitable retention interventions for the organization.

To assess the perceived impact of Talent Management Practices on employees in Companys
in Chennai.
To examine the differences of perceptions between employees and top management in
Chennai based Companys.
To study top managers perceptions of talent management practices and their impact on
business performance.
To evaluate whether top managers perceive Talent Management Practices in Company as
having an impact on business performance.
REVIEW OF LITERATURE:
In todays business climate where growth is largely a product of creative and technological
advancements, human capital is one of the companys most valuable assets. To obtain competitive
advantage companies must attract, retain and engage talented employees. As such companies must not
work only to attract and retain talent, but also equip employees with the necessary skills to become
leaders.
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Talent in the organization refers to the core employees and leaders that drive the business
forward (Hansen, 2007). They are the top achievers and the ones inspiring others to superior
performance. Talents are the core competencies of the organization and represent a small percentage of
the employees (Berger & Berger, 2004)
Boudreau and Ramstad (2005) pioneered the term Talent ship which refers to the decision
science that provides a logical, reliable and consistent framework that enhances decisions about key
resources. They further say that Talent ship is to HR what finance is to accounting, and what marketing
is to sales.
Competitive advantage comes from the internal qualities that is hard to imitate rather than for
example the firms product-market positions. Human capital is such a resource and especially the
resource and knowledge based views recognizes the firms knowledge resources as its tool for
achieving a sustainable competitive advantage (Odonez de Pablos, 2004).
It is generally accepted amongst management researchers that a sustainable competitive

advantage comes from the internal qualities that is hard to imitate rather than for example the firms
product-market positions. Human capital is such a resource and especially the resource and knowledge
based views recognizes the firms knowledge resources as its tool for achieving a sustainable
competitive advantage (Ordonez de Pablos, 2004).
It is believed that succession planning can build a competitive advantage through the superior
development of their leadership talent (Walker, 1998)
The research comprised both the quantitative and qualitative research methods. The
quantitative research involved a survey questionnaire that was distributed to a non-probability
convenience sample of employees within Companys in Chennai. The qualitative research involved
face-to-face interviews with top managers within Companys in Chennai using a semi-structured
interview schedule
Population and sampling

The company chosen for the research project is one of the nations leading mining companies
in Chennai. In this research paper, the company in question is referred to as Companys in Chennai to
protect the companys identity.
Sampling
For the quantitative aspects of the study, a non-probability convenience sample was used to
collect the data using a survey questionnaire which was administered to respondents at Companys in
Chennai.
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Table1 - The approach used in identifying talent
Positive or T Test - Statistical Results

Proposition strongly
THEME 1 International Best positive Mean Std.Dv p (1- t-value
Practice responden . tailed)
ts (%)
Heir - Inherited 40% 3.05 0.82 -2.77072 p<0.01
positions by certain
The employees
approach Talent pool - 50% 3.43 0.99 -0.46700
that Different talent pools
companies for the various
take in leadership positions
identifying Reactionary - 79% 3.95 1.06 3.55371
talent within Reaction after
organization resignation or
s attrition
Source: Primary data
Figure 1 - The approach used in identifying talent

Approches Used to identify talent
Heir - Inherited positions by
certain employees
% agree/ strongly
100% 79%
50%
agree
40%
50%
Talent pool - Different talent
0%
pools for the various
Proposition International Best leadership positions
Practice
Reactionary - Reaction after

resignation or attrition
Interpretation:
The mean of one the three items was significantly lower than 3.5, with 40 % of the
respondents agreeing to the item. 50 % and 79 % of the respondents responded positively to the other
two items tapping this theme. In describing the organization approach to talent identification the
majority of respondents (79 %) indicated that the organization took the react approach, which was
defined as, reaction after resignation or attrition on the questionnaire. This was followed by the
pool approach (50 %), different talent pools for the various leadership positions, and then there
was the heir approach (40 %) of inherited positions by certain employees.
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Table 2 - Extent of linkage between Talent Management Practices and other HR management
systems
THEME 2 Proposition Positive or T Test - Statistical Results

International strongly
Best Practice positive Mean Std.Dv. -value p (1-
respondents tailed)
(%)
Performance 45% 3.12 0.99 -2.48697 p<0.01

The linkage Management
between Training and 57% 3.25 1.08 -1.42432
Talent Development
Management Career 48% 3.12 1.09 -2.27218
Practices and planning
other HR Recruitment 31% 2.82 1.01 -4.27724 p<0.001
management and selection
systems Management 43% 3.07 1.09 -2.54621 p<0.01
development
programs
Compensation 17% 2.71 0.89 -5.71298 p<0.001
Chart 2: Extent of linkage between Talent Management Practices and other HR

management systems
Performance Management
0.6 57% Training and Development

48%
0.5 45%
43%
0.4 Career planning
31%
% agree/ strongly agree 0.3
17% Recruitment and selection
0.2
0.1
Management development
0 programs
Proposition International Best Practice Compensation
Interpretation:
The results indicating the extent of linkage between Company X Talent Management Practices
and other human resource management systems as perceived by its employees are presented in Table 2
and Figure 2. Responses to four of the items of theme four were significantly negative, two of which
were significant at the 0.1 % level and the other two at the 1 % level. The percentage of respondents
who were positive towards the other two was 57 % and 48 % respectively (see Table 2 and Figure 2).
The results as tabled in Table2 are presented graphically in Figure 2 where the percentages of positive
responses to the items are reflected.
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Table 3 - Summary of responses to employees perceptions to Talent Management Practices
items
Significantly % items
Theme Number negative or significantly
of neutral reflecting
items items misalignment
1 12 4 33%
2 18 10 56%
3 3 1 33%
4 6 4 67%
5 12 8 67%
6 9 9 100%
Total 60 36 60%
Interpretation:
The means of the responses were significantly negative to the majority of items tapping the six talent
management practices themes. As shown in Table 3 employees mean responses were significantly
negative on 36 of the 60 items, with the greatest contribution being from disagreement to the items of
theme 6 followed by themes 1and 2.
FINDINGS
The main findings from the study revealed that there is misalignment between employees and
top management on the implementation of the talent management practices within Companys
in Chennai. This was clearly evidenced by the responses by employees from the two themes.
The main findings from employees can be summarized as follows:
Employees raised concern around the instruments used to identify Potential and talent
especially around how these are used for development purpose and eventual deployment to
work assignments.
Issues relating to transparency were raised consistently from employees, as they were
concerned about not knowing whether they are talent or not.
Concern around whether line managers have the right skills and training to be able to identify
talent.
Reward and compensation were not linked to managers ability to identify or develop talent.
Communication on talent strategy and plan is not being shared widely with employees
throughout the organization.
Linkage of Talent Management Practices to other HR management systems like, training &
development, career development Reward and compensation were not linked to discussions,
performance, rewards, etc, is seen as being weak and more often an after thought
Potential is assessed through the key criteria of attitude (the extent to which an individual lives
the company values) and ability to perform at senior levels as well as the individuals ambition.
RECOMMENDATION
The following are recommendations for management:
To roll out the Talent Management Practices to the IGTP(Inter Group Talent Pool) with the
same focus, energy, intensity and support similar to ETP(Executive Talent Pool) Talent
Management Practices rollout. This must includes allocation of dedicated HR resources to
drive the process and monitor its execution and give guidance to Line Managers.
To define processes, systems and procedures for Talent Management Practices that defines
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talent identification and further define the required competencies for the different job levels in
the organization.
To provide Line Managers with support in the form of training on the skills & knowledge
required in identifying and managing talent employees and how to nurture and stretch these
talented high potential Employees within their departments.
To develop rewards and compensation structures which will be geared towards incentivizing
line managers to spot and develop talented employees.
CONCLUSION:
Highly demanding business environment makes it imperative for the organizations to build
competence in the form of superior intellectual capital. In this paper, we sought to characterize talent
management strategies in Switzerland and their impact on organizational performance, evaluating
perceived effectiveness it is the duty of the HR department to nurture a brigade of talented workforce,
which can win them the war in the business field. The talent has to be spotted, carefully nurtured and
most importantly preserved.
REFERENCE
Berge, L.A. & Berger, D. R. (2004) The Talent Management Handbok: Creating
Organisational Excellence by Identifying, Developing, and Developing your best people. New
York: McGraw Hill
Boudreau, J.W. and Ramstad, P.M. (2005) Talentship and the New Paradigm for Human
Resource Management: From Professional Practices to Strategic Talent Decision Science.
Human Resource Planning, 25(2), 17 26
Ordonez de Pablos, P. (2004) Human resource management systems and their role in the
development of strategic resources: empirical evidence. Journal of European Industrial
Training, 28(6/7), 474 489
Pattan, J.E. (1986) Succession management, 2: management selection.
Personnel, 63(11), 24 34
Wagner, T. (2002) Applied Business Statistics, Lansdowne: Juta Publications
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TALENT MANAGEMENT- HOW TO RETAIN YOUR BEST PEOPLE
C.V.Suganthamani, Assistant Professor, Guruvayurappan Institute of Management, Navakkarai
Coimbatore-105 E-mail- cv_suganthamani@yahoo.com ,Mob: 9943224515
INTRODUCTION
In the world of enterprise, talent means putting capable people in critical positions to ensure
profit, growth, excellence and perpetuity. The successful management of talent today gives
organization a vital edge. This indeed is a challenge to HR. In a way effective talent management is an
important feather in the cap of HR managers who wants to make it seriously at the broad level. An
organization must employ and retain the best, brightest people in order to innovate. It needs to provide
talent with appropriate resources for innovation
Talent Management- Meaning and concepts

Talent Management, as the name itself suggests is managing the ability, competency and
power of employees within an organization. The concept is not restricted to recruiting the right
candidate at the right time but it extends to exploring the hidden and unusual qualities of the employees
and developing and nurturing them to get the desired results. Hiring the best talent from the industry
may be a big concern for the organizations today but retaining them and most importantly, transitioning
them according to the culture of the organization and getting the best out of them is a much bigger
concern.
Talent Management in organizations is not just limited to attracting the best people from the
industry but it is a continuous process that involves sourcing, hiring, developing, retaining and
promoting them while meeting the organizations requirements simultaneously. For instance, if an
organization wants the best talent of its competitor to work with it, it needs to attract that person and
offer him something that is far beyond his imagination to come and join and then stick to the
organization. Only hiring him does not solve the purpose but getting the things done from him is the
main task. Therefore, it can be said that talent management is a full-fledged process that not only
controls the entry of an employee but also his or her exit.
We all know that its people who take the organization to the next level. To achieve success in
business, the most important thing is to recognize the talent that can accompany a person in achieving
his/her goal. Attracting them to work for company and strategically fitting them at a right place in the
organization is the next step. It is to be remembered that placing a candidate at a wrong place can
multiply the problems regardless of the qualifications, skills, abilities and competency of that person.
How brilliant he or she may be, but placing them at a wrong place defeats the sole purpose. The
process of talent management is incomplete if organizations are unable to fit the best talent of the
industry at the place where he or she should be.
Some organizations may find the whole process very unethical especially who are at the
giving end (who loses their high-worth employee). But in this cut-throat competition where survival is
a big question mark, the whole concept sounds fair. Every organization requires the best talent to
survive and remain ahead in competition. Talent is the most important factor that drives an organization
and takes it to a higher level, and therefore, cannot be compromised at all. It wont be exaggerating
saying talent management as a never-ending war for talent!
What is Talent Management?

fundamental benefit for any organization:
348
Talent Drives Performance.
We all know that teams with the best people perform at a higher level. Leading organizations
know that exceptional business performance is driven by superior talent. People are the difference.
Talent management is the strategy.
Analyst research has proven that organizations using talent management strategies and
solutions exhibit higher performance than their direct competitors and the market in general. From
Fortune 100 global enterprise recruiting and performance management to small and medium business
eRecruiting, leading companies invest in talent management to select the best person for each job
because they know success is powered by the total talent quality of their workforce.
Retaining Talent
The companies are trying to retain talent and recognize it with some changes and some of them are:
1. Change in the Psychological Contract- Ready-made talent from outside has become
necessary for many companies. Progressive companies are investing in employee development,
including formal job descriptions, greater delegation and training and hence these factors have resulted
in the change in the psychological contract.
2. Changes in HR Practices- Until recently many companies followed the principle of seniority
with respect to salary increases and promotion. Performance appraisal did not sharply distinguish
between excellent performers and average performers.
In the new scenario, companies are increasingly differentiating the treatment of top performers in terms
of significant pay increases, performance bonuses and rapid promotions. Decisions on compensation
are increasingly being made on the basis of hard data on market value, competencies and job worth.
Employee retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project. Employee retention
is beneficial for the organization as well as the employee. Employees today are different. They are not
the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current
employer or the job, they switch over to the next job. It is the responsibility of the employer to retain
their best employees. If they dont, they would be left with no good employees. A good employer
should know how to attract and retain its employees.
Many organizations believe that effective talent management practices can be a significant
source of demarcation in today's cutthroat competition in a globally integrated economy. At the same
time, industries face their own set of unique challenges a situation that has led ventures to focus on
different pieces of the talent management "puzzle." A recently completed study by IBM highlights how
knowledge- and service-intensive industries tend to spend significant time and attention on talent
management activities, while not-for-profit organizations appear to struggle to make the most of their
workforce. Knowledge-intensive industries tend to focus on developing and connecting their
employees. Financial services companies tend to focus on employee attraction and retention, Retailers
apply a notable number of talent management practices overall and finally Government agencies,
educational institutions and some healthcare firms fall short in managing talent and sustaining change
Effective talent management processes and systems can have a significant positive impact on business.
The most valuable systems are those that deliver direct value to the business manager, which are easy
to use, and that are integrated across functions. Processes and systems that meet these criteria are well-
suited to help companies meet their critical talent management challenges.
Why Talent Management?

ongoing processes and practices to maintain a stellar workforce.
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Today, many organizations are struggling with silos of HR processes and technologies. The future of
talent management is embodied in solutions designed from the ground up to provide business-centric
functionality on a unified talent management platform.
Poacher Prevention Strategy

The best way to shield prized employees from the sticky fingers of a corporate raider is to do a
survey on who on staff is poachable, says Sullivan. "Most companies have search firms that work for
them. Corporate recruiters should take a step back to review the skills and types of employees they are
looking to hire and then compare that to who is already onstaff. Reward managers for keeping good
people and if possible reward entire teams. Smart employers prepare for the turnover. For example,
Intel has a great replacement and training program
According to the 2011 Talent Survey by Aon Hewitt, 61% of more than 1,300 business
professionals surveyed anticipate an increased focus on talent development in the coming year. Forty
percent believe there will be an increased focus on hiring, and one-third predict increased turnover.
These numbers arent hard to understand in light of the attitudes of todays employees. Over 50%
indicate they are, at most, passively engaged at work, while 42% are not energized by their work and
40% are generally stressed to the point of feeling burned out.
What does this all point to? A potential mass exodus of employees as the economy improves
and hiring increases. Even more surprising than the statistics above, 83% of survey respondents believe
that senior leaders play a very important role in motivating and retaining talent, but just 33% say their
leaders are effective at retaining talent they need for the future, and less than a third believe their
leaders are effective at hiring more productive employees.
CONCLUSION
Talent today is hired for unimaginable compensation and is showered with perks unheard of
before. The companies are feeling the pressure to retain talent and in its bid for it are restructuring their
whole recruiting and retention strategy. The rising tide of talent is lifting all boats. The companies have
realized that it is their human resources that is the best bet to make it come true, and knows that there is
job in the making of Talent Manager. Companies that successfully create and communicate signature
experiences understand that not all workers want the same things. Indeed, employee preferences are an
important but often overlooked factor in the war for talent.
The best strategy for coming out ahead in the war for talent is not to scoop up everyone in
sight but to attract the right people those who are intrigued and excited by the environment the
company offers and who will reward it with their loyalty.
REFERENCES
SubbaRao, Personnel and Human Resource Management Text and cases, Himalaya Publishing
House, Fourth edition 2008
David A. Desenzo and Stephen P.Robbins,Human Resources Management, 7th edition
En.wikipedia.org
www.perfode.com
www.bnet.com
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STRESS AND ITS MANAGEMENT - A RISING CONCERN
J. Vijaya Shanth, Research Scholar, Dept Of Commerce, Bhartiyar University, Coimbatore
& Lecturer, Dept Of Commerce, Anna Adarsh College For Women , Chennai
INTRODUCTION
The fast global and technological developments in todays business environment are quite
complex. As a result organizations are seeking newer ways to promote their adaptability to the
complexities of the changed scenario.
The economic downturn has forced companies to rethink the way they do business. The focus
has shifted to keep companies functional and competitive. The key in doing this is to increase
employee engagement and resilience.
Employee engagement takes a new meaning in the information age because it is employees
who create value for businesses today. They form the vital link between customers and the
organization. Their relationship with customers and their ideas contribute to the growth of the business.
Consequently an employees level of engagement and his quality of work are important to growth.
When employees are engaged it reflects positively on the bottom line and their productivity. Successful
firms show a high level of employee engagement.
When employees are engaged they go beyond their jobs during tough times. Such employees
also contribute to innovation and value development. Their creative ideas will help the company get an
edge over competitors.
The changing job scenario in the globalized world has given rise to a new phenomenon called
stress. Hectic work schedules, omnipresent deadlines, cutthroat competition, global meltdown and the
subsequent turmoil in the financial market have posed new challenges for the employees in the
organization. All this has led to stress which has become a buzzword.
DEFINITION OF STRESS
Sridar Rao defines stress as a perceived state of disturbed harmony produced by a stimuli,
condition or event called the stressor. The disturbance results from the persons inability to meet the
threats posed by the stressor, or form his inadequacy to satisfy the demands imposed by it.
The Oxford Dictionary of HRM defines job stress as a condition where an aspect of work is causing
physical or mental problems for an employee
FACTORS CONTRIBUTING TO STRESS

Job stress is major phenomenon that cripples organizational life. Earlier, the victims of job
stress were mostly people in their middle age but unfortunately with complexities of modern age and
information technology revolution, stress related disorders have begun to affect people in their early
twenties or even late teens.
The factors that contribute to stress or stressors are-

1) LACK OF CLEARLY DEFINED ROLES AND RESPONSIBILITIES- if the job description
is not clearly specified, then the employees are unable to decide how to accomplish the task assigned to
them and even harder for them to be confident, enjoy their work and feel satisfied about doing a good
job. Also if the job requirements are constantly changing and hard to comprehend or if expectations are
otherwise vague employees are at higher risk of stress.
2) LACK OF AUTONOMY- most employees wish for some measure of autonomy at work.
Detailing minutely as to how each task needs to be done, takes away the autonomy from them.
Excessive levels of required approvals and never ending paperwork also results in frustration. Thus
management unintentionally makes it difficult for employees to do their jobs. Mostly employees who
351
feel restricted and are not able to have any control over the work environment and day to day decisions
tend to become stressed out.
3) LACK OF RECOGNITION- recognition does much more than mere acknowledging the
employees contribution rather it strengthens employees continued accomplishes while emphasizing that
a job well done is always recognized by the organization. However most of the times employees either
receive inadequate recognition or none at all. There is more likelihood of management criticizing them
for poor performance than commending them for good work.
4) POOR LEADERSHIP company leadership can go a long way in either preventing or

contributing towards stress. Poor company leadership can make an employee feel unappreciated,
unrecognized and unfairly treated.
5) LIFE STYLE FACTORS- devoting most of their time to work and work related activities
interferes with other important stress relieving activities like socializing, hobbies and exercise.
Spending longer hours at work leaves less time for socializing and other activities which contributes to
stress.
CONSEQUENCES OF STRESS
Moderate amount of stress propels employees to take up challenges but at higher level it can
cause negative impact. Effects of stress are extremely powerful and far-reaching. Consequences of
stress can be classified as
1) PHYSIOLOGICAL CONSEQUENCE
Physical illness such as
Hypertension, ulcers, diabetes, miscarriage during pregnancy, etc.
Immune system problems where there is a lessened ability to fight off illness and infection.
Cardiovascular system problems such as tension headaches, strokes and back pain.
Gastrointestinal system problems such as diarrhea and constipation.
2) PSYCHOLOGICAL CONSEQUENCE
Loss of interest in day to day action
Lack of concentration
Inability to take decision
3) BEHAVIORAL CONSEQUENCE
Strained interpersonal relations
Absenteeism
Turnover
4) COGNITIVE CONSEQUENCE
Signs of boredom
Weariness
COPING STRATEGIES
Change is a constant phenomenon in life, stress is also an integral part of it. Stress in the
workplace reduces productivity, increases management pressures, and makes people ill in many ways,
evidence of which is still increasing. Workplace stress affects the performance of the brain, including
functions of work performance, memory concentration and learning.
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Stress stems from multifarious factors and conditions that are almost impossible to eliminate.
However, concrete steps can be taken to minimize its harmful effects. Both the individual and the
organization should take steps to cope up with the stress.
CONCLUSION
In todays competition scenario, organization try to squeeze out more output using less
resources from its employees. This may affect productivity and leads to employee turnover. The
organization should try to bring out the best in people by assisting them in reducing employees stress.
It should identify factors which can make employees stressed out and should adopt suitable measures to
motivate them. Individuals should also initiate steps to reduce their stress levels and try to have a work
life balance.
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RECRUITING & HIRING
J. Anushya, Department of Management Studies, Karpagam University, Coimbatore- 641021.
Dr.P.Palanivelu, Professor, Department of Management Studies, Karpagam University, Coimbatore-
641021.
ABSTRACT
"I believe the real difference between success and failure in a corporation can be very often
traced to the question of how well the organization brings out the great energies and talents of its
people." Thomas J. Watson, Jr. Manpower is the backbone of the organization. The search for new
employees is a familiar task for most employers. Employees retire, move, quit, are transferred, or are
fired. Businesses restructure, grow, or take a new direction. When companies require new employees
either because of expansion or employee turnover, they undertake a process of identifying the positions
available and the skills needed to fill them. Next, companies launch any number of recruiting
campaigns: placing newspaper advertisements, soliciting referrals from colleagues and employees,
conducting job fairs, etc. After this step, employers interview applicants they feel are best suited for
the positions available and they begin the selection process after conducting interviews. If needed,
companies may interview applicants several times to ensure they select the most qualified candidates.
All these steps make up the hiring process, through which employers identify and fill job openings.
Regardless of the situation, the end result is the same employers have a job opening to fill. This study
will guide how to hire people, Types of recruitment, Recruitment/ hiring process, Hiring budget,
relationship between hiring and recruitment, Present Recruitment/hiring strategies.
INTRODUCTION
Recruitment and hiring are two of the more critical management functions of the organization,
and as such, should be fully addressed. Recruitment is the initial phase of the hiring process.
Recruitment is the process of attracting qualified applicants to your organization. Hiring includes
recruitment, screening, interviewing, selecting, and finally employing. Hiring starts with a formal
hiring decision and goes on until the person starts work, including induction program/training. The
specific activities in Hiring are Salary negotiation, specifying the exact roles and responsibilities,
finalizing whether it is temporary or permanent position, fixing up the joining date. Etc.
RECRUITMENT
Recruitment refers to the process of attracting, screening, and selecting qualified people for
a job. For some components of the recruitment process, mid- and large-size organizations often
retain professional recruiters or outsource some of the process to recruitment agencies.
RECRUITMENT TYPES
1. External Recruitment methods:
2. Employment Agency- Traditional method
3. Headhunters
4. Niche Recruiters
5. Social Recruiting
6. Internal Recruitment Method
7. Employee Referral
8. In-House Recruitment
MODERN RECRUITMENT
Internet Recruitment and Websites: Such sites have two main features: job boards and
a resume/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies.
Alternatively, candidates can upload a resume to be included in searches by member companies. Fees
are charged for job postings and access to search resumes. Key players in this sector provide e-
recruitment software and services to organizations of all sizes and within numerous industry sectors,
who want to e-enable entirely or partly their recruitment process in order to improve business
performance. Online recruitment websites can be very helpful to find candidates that are very actively
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looking for work and post their resumes online, but they will not attract the "passive" candidates who
might respond favorably to an opportunity that is presented to them through other means.
Job Search Engines: The emergence of meta-search engines allows job-seekers to search across
multiple websites. Some of these new search engines index and list the advertisements of traditional
job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers.
HIRING
The practice of finding, evaluating, and establishing a working relationship with future
employees, interns, contractors or consultants.
STEPS IN THE STAFF RECRUITMENT/HIRING PROCESS
Steps in the recruitment/hiring process:
1. Identify need for position Program Manager/HRD Office
2. Develop/Classify Job Description Program Manager/HRD Office
3. Approve Position to be filled Organization Management
4. Internal Posting if appropriate HRD Office
5. Develop/Implement Recruitment Plan HRD Office
6. Screen Candidates resume Program Manger./HRD Office
7. Make initial Contact with Candidates Program Manager/HRD Office
8. Conduct Interviews* Program Manager
9. Conduct Reference Checks Program Manager
10. Make Hiring Decision Program Manager/HRD Office
11. Make Employment Offer, Negotiate Salary HRD Office
12. Document the Hiring Process HRD Office
13. Conduct Orientation for New Employee HRD Office
14. Conduct Performance Planning with New Employee Program Manager/Supervisor
15. Review Probationary Period Supervisor
16. Confirm Employment Status Supervisor
CONCLUSION
There are several options for employers to recruit/ hire the people for the vacancy positions.
The employers should consider the factors: budget for recruiting/ hiring, Skills, knowledge, talent,
ability of the candidate, Timely recruiting/ hiring people. Hire people, who are better than you are,
then leave them to get on with it. Look for people who will aim for the remarkable, who will not settle
for the routine. Said by, David Ogilvy. Employer can use this information to determine what skills the
new employee must have and what skills would set great candidates apart from good candidates.
After considering the advantages and disadvantages of a variety of different recruitment/ Hiring
options, and by learning how to diversify the workforce, you will likely be able to find a strategy that
will meet employer needs. It is also important that the organization fully support its recruitment staff
and their activities as a critically important management function. Both the way the recruitment
process is conducted and the resulting hiring decision have a lasting and direct effect on the success
and performance of the organization. The organizational policy should be, at all times, to engage in
ethical and responsible business practices and to make employment decisions based on acquiring the
most qualified staff available to fulfill its mission.
REFERENCES
http://www.citehr.com/84854-difference-between-hiring-recruitment.html#axzz1VfsYC7Yb
http://humanresources.about.com/od/recruitingandstaffing/Employee_Planning_Recruiting_Selecting_
Staffing_and_Hiring.htm
http://en.wikipedia.org/wiki/Recruitment
http://www.linkedin.com/answers/hiring-human-resources/staffing recruiting/HRH_SFF/238474 -
6728222
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TALENT MANAGEMENT
Syed Mansoor Pasha: Asst Prof. Dept of Business Management
Lalitha PG College, Venkatapur (V), & Ghatkesar (M). Hyderabad.
ABSTRACT
maestros. In present talent-hungry marketplace, one of the greatest challenges that organizations are
facing is to successfully attract, assess, train and retain talented employees. Talent Management is the
end-to-end process of planning, recruiting, developing, managing, and compensating employees
throughout the organization. Business leaders who implement a strategic talent management process
are more prepared than their competitors to compete in the global economy and capitalize quickly on
new opportunities. True success is only available when companies do more than adapt to long-term
trends; they must be able to anticipate and jump on new opportunities before the rest of the market. A
strategic talent management plan allows company to:
Become "proactive" versus "reactive". Fill your critical talent management needs and address
company and industry changes promptly;
Identify essential skills to be developed in all employees, and minimize training costs by
focusing on key development areas; and
Improve recruiting process by identifying high-quality candidates using job descriptions based
upon the expertise of your high performing employees holding uniquely valued company or
industry competencies.
To win in the game of business, members of business teams must also receive clear direction, feedback
and improvement advice.
Have a look at these figures:

Infosys - 10.7 %
Wipro - 17 %
Satyam - 18 %
HCL Technologies - 13.1 %
i-Flex Solutions - 19 %
These are the attrition rates of the employees of the above mentioned companies in 2006. Some of
these actually match their revenue growth rates!!! This is giving a severe headache to the top
management in general and HR department in particular. So, this has added to the functions of the HR
department a new function - Talent Management
In the first quarter of FY 2010-11, the attrition rate in Wipro and Infosys surged to an
alarming 16 %, and 14.1% during the second quarter at TCS, forcing the companies to increase their
annual hiring projections. The average attrition rate during the period was 10% across the industry.
Attrition is projected to be around 22% in FY 2011-12. Attrition is highest among the 1-3 years
experience level and mid-level project managers with a track record of handling challenging customers
and large accounts. The end of this quarter will be a sign of things to come. TCS, Wipro and Infosys
plan to add 100,000 new employees to their workforce, accounting for 50% of the 200,000 new jobs to
be created by the Indian IT industry. Undoubtedly, its going to be a busy year ahead for Human
Resource managers and head hunting firms. Talent Management is beneficial to both the organization
and the employees. The organization benefits from: Increased productivity and capability; a better
linkage between individuals' efforts and business goals; commitment of valued employees; reduced
turnover; increased bench strength and a better fit between people's jobs and skills. Employees benefit
from: Higher motivation and commitment; career development; increased knowledge about and
contribution to company goals; sustained motivation and job satisfaction. The paper will study the
Impact of Talent Management on organization growth, development and the revenue turnovers of
software industry
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INTRODUCTION
Every organization today has to be deeply concerned about selecting and retaining competent,
committed people - also known as talent. Accurately describing what talent looks like in a specific
organization in specific jobs is the first major step in creating an effective approach to HR
Applications. Talent management describes the process through which employers of all kinds firms,
government, and non profits organisations anticipate their human capital needs and set about meeting
them. Getting the right people with the right skills into the right jobs, a common definition
of talent management is the basic people management challenge in organizations. While the focus
of talent management tends to be on management and executive positions, the issues apply to all jobs
that are hard to fill. One important distinction is the evolution of the difference between tactical HR and
strategic talent management. Transactional HR activities are administrative overhead. Talent
management is a continuous process that delivers the optimal workforce for any business.
THE NEW HR MISSION AND TALENT MANAGEMENT PROCESSES

Many challenging workforce issues confront HR, including:
Heightened competition for skilled workers.
Impending retirement of the baby boomers.
Low levels of employee engagement.
Acknowledgement of the high cost of turnover.
Arduous demands of managing global workforces.
Importance of succession planning.
Off shoring and outsourcing trends.
This requires new thinking and a new mission to achieve business success. These factors
coupled with the need to align people directly with corporate goalsare forcing HR to evolve from
policy creation, cost reduction, process efficiency, and risk management to driving a new talent
mindset in the organization.
MODEL OF TALENT MANAGEMENT

Instead of being the owners of processes, forms, and complianceHR becomes the strategic
enabler of talent management processes that empower managers and employees while creating business
value. Anecdotally, talent management is often defined as performance management, incentive
compensation, or talent acquisition. Talent management is also often confused with leadership
development. Although leadership development is a crucial function of any organization, focusing on it
exclusively is a legacy of last century. Our modern service and knowledge economies in the talent age
require a broad and holistic view. A high performance business depends on a wide range of talent.
Taleos graphical representation emphasizes the mandate of talent management to respond to business
goals and consequently be the driver of business performance. Talent management is depicted as a
circularnot a linearset of activities.
Assess : Assessment Workforce planning Talent analytics

Acquire: talent sourcing, contingent labour procurement, selection ,outsourcing
Develop: performance management, career planning, leadership & succession planning.
Align: internal mobility, goal management, reporting.
According to a global study of companies with "world-class HR organizations" by the Hackett Group:
TALENT MANAGEMENT PRACTICES BY HUL, WIPRO AND INFOSYS.

INFOSYS:-
To ensure that talent is optimally harnessed to stay ahead of curve, innovation is a constant process at
Infosys. One e such initiative is the Infosys leadership institute (ILI) with its mission of making
leadership and managerial development integral to business. The mandate of ILI is
Enhance managerial capabilities for increased customer satisfaction.
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Develop leaders to take the organisational vision forward.
Partner with customers to build high performeming multi cultural teams.
ILIs dedicated campus in India offers a unique atmosphere that encourages thinking, learning and
executing. Through multiple initiatives like
Pravesh- a continuous learning program for first time managers.
Global business finishing school- a learning initiative to make every new entrant into Infosys
ready for the job in quick time.
ILI has ensured that Infosys maintains its edge in talent over competitors for superior business results.
And no doubt Infosys has achieved it.
WIPRO:-
Wipro has a well organised structure to deal with employee management. It has developed
few models to manage these processes such as EPM SAS & etc.
Wipro typically offers flexible employee performance management(EPM) solutions delivered in either
a business process outsourcing (BPO) or software as service (SAS) that make assessment and
development easy , more accurate and economical.
HUL:
Hindustan unilever has been consistently producing CEOs and corporate leaders for more
than 25 years now, the leadership development process at levers is more of a tradition, institutionalised
over the last many decades with more than 1000 alumni sitting on boards globally , HUL is a source of
inspiration to many companies. The key tenants to this solid tradition has been commitment from top
leadership a robust and consistent process, strong linkage between individual development and level of
exposure offered, mentoring training all fostered in a culture of transparency and equal opportunity.
70-20-10 model: the company uses 70-20-10 model for developing its work force. 70%
learning happens on the job, 20% through mentoring and 10% through training & course work.
Top management at Hindustan unilever invest anywhere between 30 to 40% of their time in
grooming and mentoring leaders for the future. They get involved at various stages from redefining
talent identification process, to grooming and coaching, to creating opportunities for growth and
exposure.
The critical role of a leader at HUL is to create talent and capability for the future.
TCS:
TCS (Tata Consultancy Services), is the largest IT service provider in Asia and among the top
10 in the world. This year it will be recruiting between 40,000 and 45,000 people. Although TCS
operates in a highly competitive environment, it has one of the highest retention rates in the industry. It
was also awarded the Best Employer Award by Dataquest in India in 2007.
CURRENT SCENARIO OF INFOSYS, TCS AND WIPRO:-

Before 2010 drew to a close, the top three Indian IT companies hinted at plans to contain
attrition with impressive double-digit salary hikes and promotions. The countrys top three software
exporters Tata Consultancy Services (TCS), Wipro and Infosys Technologies Limited face stiff
competition among themselves and from multinational competitors such as Accenture, IBM and
Cognizant Technology Solutions to retain top performers in the middle-management level.
SUGGESTIONS & CONCLUSION

Align Individual Goals with Corporate Strategy
The best talent management plan is closely aligned with the companys strategic plan and
overall business needs. Goal alignment is a powerful management tool that not only clarifies job roles
for individual employees, but also demonstrates ongoing value of your employees to the organization.
When you engage employees in their work through goal alignment, you create greater employee
ownership in your company's ultimate success; they become more committed to your company and
achieve higher levels of job performance.
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To achieve "goal alignment" in your organization, you must first clearly communicate your strategic
business objectives across the entire company. By allowing managers to access and view the goals of
other departments, your organization can greatly reduce redundancy. Goal sharing also helps
departmental heads find ways to better support each other, as well as identify areas where they may be
unintentionally working at cross purposes. With everyone working together toward the same
objectives, your company can execute strategy faster, with more flexibility and adaptability.
Essentially, goal alignment strengthens your leadership and creates organizational agility by allowing
managers to: Talent management is the new dimension realised in the business world. Not only the
software industries even the FMCG companies practice and implement new HR dimensions in their
organisation.
BIBLIOGRAPHY:
Weatherly, L.A. (September, 2003), The Value of People: The Challenges and Opportunities
of Human Capital Measurement and Reporting, Pg. 106
Society for Human Resource Management, Retrieved December 2, 2003 from
http://www.shrm.org/research/quarterly
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TALENT MANAGEMENT
Mrs. V.Kothainayaki, Head of The Department of Commerce (Corp. Sec.) R.B Gothi Jain College
For Women, Redhills Chennai 52
INTRODUCTION:
Talent Management is the skill of attracting highly skilled workers, integrating new workers,
and developing and retaining current workers to meet current and future business objectives. In 1990s
it has emerged and it has to be adopted in most of the companies to realize their employees talent and
skills. Talent management may be broken up as under
T = Triumph
A = Ability
L = Leadership
E = Easiness
N = New- fangled, Novel, Creativity & Innovation
T = Time
Manage + Men + T = Tactfully (Substitute)
Talent
Talent can be defined as "a recurring pattern of thought, feeling or behaviour that can
be productively applied." The emphasis here is on the word "recurring." Talents are basically
the behaviours we find our self doing often.
Talent can also be defined as a combination of individuals skills and competencies which he
or she posses.
A talented employee is a person who brings something into an organization that, in a way, is in
excess in that organization, often unexposed in its plans and strategy, because to ascertain moment the
organization is unaware of it. The qualities of talented persons
TALENT MANAGEMENT
Talent Management can be defined as the process of developing and integrating new workers,
developing and retaining current workers, and attracting highly skilled workers to a company. The
concept of Talent management emerged in 1990s and the term talent management was coined by David
Watkins of Soft cape. The Talent Management Process (TM) can also be defined as an ongoing,
dynamic process assessing the current managerial talent present in an organization so that action plans
may be created to develop each manager to their full work potential. It can also be defined as a
conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and
abilities to meet current and future organizational needs. Talent Management implies recognizing a
person's inherent skills, traits, personality and offering him a matching job. Every person has a unique
talent that suits a particular job profile and any other position will cause discomfort. It is the job of the
Management, particularly the HR Department, to place candidates with prudence and caution. A wrong
fit will result in further hiring, re-training and other wasteful activities. A conscious, deliberate
approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current
and future organisational needs.
PRINCIPLES OF TALENT MANAGEMENT:

Principle 1 - Avoid Mismatch Costs
Principle 2 - Reduce the Risk of Being Wrong
Principle 3 - Recoup Talent Investments
Principle 4 - Balancing Employee Interests
TALENT MANAGEMENT PROCESS:

Recruitment
Retention
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Development
Performance Management
Recruiting: A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The results are a
pool of applications from which new employees are selected.
Selection is the process picking individuals with requisite qualification and competence to fill
jobs in organization.
Orientation, Planning an orientation to employees should be as carefully done as planning a
systematic approach to training. For example, there should be overall goals that you want to
accomplish with the orientation. There should be carefully chosen activities and materials used in the
orientation to achieve the goals. Participants should produce certain. Tangible results that can be
referenced to evaluate the orientation both during and after the orientation.
Assist a new employee to transition into the organization and to be able to produce a quality
deliverable within the first three months of tenure. This will go a long way to ensuring that the
placement will be successful.
Retention: Employer retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time.
Growth and development are the integral part of every individuals career. If an employee
cannot foresee his path of career development in his current organization, there are chances that he will
leave the organization as soon as he gets an opportunity; increased knowledge about and contribution
to company goals; sustained.
A competency is any observable and/or measurable knowledge, skill, ability or behaviour that
contributes to successful job performance.
There are two major components to a competency -- the definition and the scale. The
definition explains what the competency means. This provides a common language that everyone in the
organization can understand the same way. Each competency also has associated levels of proficiency,
which are described as a scale. The scale is descriptive in that it lays out a behaviour pattern for each
level. It is incremental and additive, which means that any one level is inclusive of all preceding levels.
For example, a level C includes the behaviours described in levels A and B. The scale begins with
passive behaviour at level one and activity gradually increases from levels two to four or five. The
progression of this scale is provided with the definition.
Training and development is the field which is concerned with organizational activity aimed
at bettering the performance of individuals and groups in organizational settings. It has been known by
several names, including employee development, human resource development, and learning and
development Training and development encompasses three main activities: training, education, and
development.
Training: This activity is both focused upon, and evaluated against, the job that an individual
currently holds.
TALENT MANAGEMENT CYCLE

Businesses which are not paying attention to these will likely find themselves facing higher
turnover and greater difficulty in recruiting the talent that they need.Attracting the right talent,
Retaining talent, Developing talent, Transitioning talent.
Attracting the right talent: Given comparable job opportunities, why would someone want to
choose one over another candidate. Contrary to popular belief, higher pay is not the main or only
criterion. Challenge, growth, effective leadership, opportunity to make a difference, benefits, a
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collaborative team environment and family-friendly policies are all critical considerations for todays
candidates. First and foremost, candidates should be treated by organizations as would be the best
customer from the very first point of contact, and throughout the recruitment and selection process.
Organizations should be rigorous in designing a selection process that will help them in finding the best
match. Top notch employees will want to work for an organization that sets high standards in its
employment process.
CONCLUSION
Providing these resources to the management it helps their employees to achieve their
individual potential and it helps the business to respond to challenges, enter new markets and move
ahead of the competition. It is agreed that it is the human resource a talented one that can provide them
competitiveness in the long run. So, it is the duty of the HR department to nurture a brigade of talented
workforce which can win the war in the business field.
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PERFORMANCE AND COMPENSATION MANAGEMENT
Mrs.K. Karpagambigai, M.Com, M.Phil., Assistant Professor,Department Of Commerce (Bank
Management), R.B.Gothi Jain College For Women Redhills, Chennai
INTRODUCTION:
Todays Organization seems to change much more rapidly than in the past. Creating an
environment in which employees are rewarded for their hard work in direct relation to their
performance will be a driving factor to boost and enrich business. A well designed performance and
compensation management system can play a crucial role in streamlining the activities of the
employees in an organization for realizing the ultimate corporate mission and vision.
EMPLOYEE PERFORMANCE MANAGEMENT:
Stages of Employee performance management
Stage 1- Planning: Plan before every action

In an effective organization, Work is planned out in advance. Planning means setting Performance
expectations and goals for group and individuals to channel their efforts towards achieving
organizational objectives. Involving employees in the planning process helps them understand the goals
of the organization
What need to be done?
Why it need to be done?
How well it should be done?
Performance plan used effectively, these plan can be beneficial working documents that are discussed
often, and not merely paper work that is filed in a drawer and seen only when ratings of record are
required.
Stage 2 Monitoring: Identify deficiency, improve efficiency

When employees have been given the performance plan and understand the requirements, they are
monitored and evaluated on their progress for meeting the plan. Projects should be monitored
continually by management with on-going communication with the employees about their progress.
During planning and monitoring of work, deficiencies in performance become evident and can be
addressed. Areas for improving good performance also stand out, and action can be taken to help
successful employees to improve even further.
Stage 3 Developing: Develop skill to succeed current and future role

In an effective organization, developmental needs are evaluated and addressed. Developing in
assignments this instance means increasing the capacity to perform through training, giving that
introduce new skills or higher levels of responsibility, improving work processes, or other methods.
Employees may wish to develop skills beyond the scope of their current plan or learn skills of
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advancement. Management works with employees to identify weakness and strengths. Providing
employees developmental opportunities encourage good performance, strengthen job-related skills and
competencies, and helps employees keep up with changes in the work place, such as introduction of
new technology.
Stage 4 Evaluating: Know the best, train the rest

From time to time, organizations find it useful to summarize employee performance. This can be
helpful for looking at and comparing performance over time or among various employees.
Organizations need to know who their best performers are. Management will perform evaluation of the
employee in line with all aspects of performance plan. Typically, a rating is given to document the
employees overall ability to perform the job function.
Stage 5 Rewarding: Acknowledging employees for their best contribution

In an effective organization, rewards are used well. Rewarding means recognizing employee
individually and as members of groups, for their performance and acknowledging their contribution to
the agency mission. Rewarding employees for meeting or exceeding performance goals is an important
aspect of performance management system. The types of rewards vary depending on the organization.
Performance appraisal: one of the key elements of an employee performance management is

performance appraisal. It is one of the oldest and most universal practices of management and referred
as Merit rating . Modern management makes somewhat less use of this term. The approach resulted
in an appraisal system in which the employees merits like initiative, dependability, personality etc.
were compared with others are rated. The trend nowadays is in the direction of attempting to measure:
CONCLUSION:
To conclude, Performance and Compensation management can be regarded as pro-active
system of Managing employee performance by determining better pay for their performance driving
the organizational towards desired results. Recent introductions in Indian companies in related to
performance and compensation plans are:
Under Performance management plan, Arvind mill of Lalbhai group , realized the importance of
this plan and the implementation of Pro-active performance management in their organization
after facing serious threats from the business competitors. In India, workers live under subsistence
conditions. Their Monetary and Non-Monetary incentives are relatively important. Under monetary
incentives, Indian companies pay attention in fixing a Satisfied and adequate salary for their workers
based on their levels.
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R.KARTHIKKEYAN. Lecturer. & R.VIGNESHWARAN, Student. & D.KARTHIK. Student.
Department of Management Studies, Kurinji College of Engg & Tech, Manapparai - 621307
INTRODUCTION
The Compensation & Performance Management team is pleased to provide information
related to all our services. If you are interested in learning more about Compensation Management
programs, you can access current policies, procedures and guidelines online. Additionally, there is
information and resources provided on Awards & Recognition, Classification, and Performance
Management.
We assist clients with the assessment of existing total cash compensation policies and
component programs (e.g. base salary, sales compensation, etc.), and the development of new and
aligned strategies and administrative infrastructures. We work with organizations of all sizes and
across a variety of industries to design and implement integrated performance management and
compensation programs.
Our practitioners are skilled in the analysis and application of both base salary and incentive
compensation for executives, work teams and employees.
Our performance management and compensation services include:

Audit of existing competency and performance management schemes
Competency design, definition and inventory
Development of staff attraction and orientation policy
Development and implementation of performance management and appraisal systems
Development and implementation of career development plans
Development of succession plans
Development of a learning and growth system
Job Evaluation systems design and implementation
Design of reward structures / Bonus & incentives plans
Linking Performance Management to rewards
Performance Management :
Performance management is not an annual event; rather it is a continuous process requiring
clear performance expectations, periodic feedback, coaching/instruction, and recognition for
improvement and contributions. Effective performance management is built on the foundation of a
trusting relationship between supervisor and employee that enables open two-way communication
Performance Management System is the most efficient and user friendly way to develop and deliver
performance measurement programs. Like all our systems, results from performance measurement
initiatives are analyzed instantly through easy to read reports that provide up-to-the-minute feedback
tied directly to our Learning Management System, Compensation Management Systemn and Talent
Database.
Design Features
Develop online multirater peer reviews, 360 surveys, and leadership assessments for anyone,
anywhere, in your organization.
Present content in a variety of formats and multiple languages.
Define and assign employee-based data and mandatory fields to your assessment.
Control the entire look and feel and structure of your assessments.
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Save Time and Reduce Dependence on Forms
Our simple online Performance Management tools allow your organization to end extensive
paper appraisals, speeding up the entire evaluation process and providing accurate information for
performance assessment.
Performance Evaluation & Career Development

Assist supervisors with managing, developing and retaining their best people by performance
appraisal, evaluation scales and objective for every employee.
Employee Performance Management & Career Development solution is a component of

Human Resource Management Application Suite and can be deployed with Recruitment, Profile
Management, Workforce Management, Attendance & Leave Management, Payroll & Compensation
Management to support an organization's complete human resource requirements. With the
Performance Evaluation & Career
Development is a process which requires following phases:
Planning Phase:
Set mutually agreed upon goals and guidelines for employee evaluation. Determine the key
objectives for measuring success in the position and set developmental goals to encourage greater
productivity and results.
Performance Management and Development in the General Work System

Define the purpose of the job, job duties, and responsibilities.
Define performance goals with measurable outcomes.
Define the priority of each job responsibility and goal.
Define performance standards for key components of the job.
Hold interim discussions and provide feedback about employee performance, preferably daily,
summarized and discussed, at least, quarterly. (Provide positive and constructive feedback.)
Maintain a record of performance through critical incident reports. (Jot notes about
contributions or problems throughout the quarter, in an employee file.)
Provide the opportunity for broader feedback. Use a 360 degree performance feedback system
that incorporates feedback from the employee's peers, customers, and people who may report
to him.
Develop and administer a coaching and improvement plan if the employee is not meeting
expectations.
Immediate Preparation for the Performance Development Meeting

Schedule the Performance Development Planning (PDP) meeting and define pre-work with
the staff member to develop the performance development plan (PDP).
The staff member reviews personal performance, documents self-assessment comments and
gathers needed documentation, including 360 degree feedback results, when available.
The supervisor prepares for the PDP meeting by collecting data including work records,
reports, and input from others familiar with the staff persons work.
Both examine how the employee is performing against all criteria, and think about areas for
potential development.
Develop a plan for the PDP meeting which includes answers to all questions on the
performance development tool with examples, documentation and so on.
Design Features
Develop online compensation and salary surveys for anyone anywhere in your organization
and tie data to industry benchmarks.
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Implement pay-for-performance programs using a variety of multipliers and administer budget pools
with various funding options.
Delivery Features
Deliver online compensation and salary surveys to anyone anywhere in your organization.
Streamline feedback and response processes.
Schedule automated and personalized survey notifications.
Management Features
Manage and link responses in a central Talent Database.
Maintain and search compensation records.
Inventory core metrics that can be easily retrieved, shared, and reused.
Reporting Features
Generate a variety of reports for employees, business managers, and senior management and
compensation managers. Analyze real-time information for creating competitive compensation plans
and monitoring outcomes as they are administered. The typical global enterprise still relies on
spreadsheets or outdated legacy systems to manage compensation, which leads to inconsistency in how
compensation policies and plans are created, implemented, and measured. The fragmentation of
compensation management within many organizations can result in poor decisions based on inaccurate
or out-of-date information, inefficient and costly efforts for rollups and approvals, and an inability to
align compensation decisions to the performance of individuals and groups. We offer Compensation
Management tools that support a pay-for-performance culture. We help you identify current employee
compensation trends, easily pinpoint fair employee compensation for all talent levels, plan for
compensation increases and align compensation directly to performance. When employees have a clear
career path that aligns to recognition and compensation, they stay more focused, engaged and
motivatedincreasing organizational alignment and return on investment.
CONCLUSION
Performance management is not an annual event; rather it is a continuous process requiring
clear performance expectations, periodic feedback, coaching / instruction. and recognition for
improvement and contributions. All performance management plans should be created using the on-
line performance management tool. Compensation Management is more than just the means to attract
and retain talented employees. In todays competitive labor market, organizations need to fully
leverage their human capital to sustain a competitive position. The motivation level of the employees
to great extent lies in monetary rewards. the employee how to work for the organization in thin time
to check for it and the employee performance to very well for the period to give some think for it . The
checking and motivating employee to conduct the level . mange the business.
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EFFECTIVE PERFORMANCE MANAGEMENT: LINKAGE OF HRM TO
PERFORMANCE MANAGEMENT
Mrs. P Sangeetha BE., MBA., (PHD), Assistant Professor, Department of Management Sciences, D J
Academy for Managerial Excellence, Coimbatore =641032
ABSTRACT
In today's workplace, performance improvement and the role of performance management is
an increasingly popular topic. Why the intense focus on performance management now? Business
pressures are ever-increasing and organizations are now required to become even more effective and
efficient, execute better on business strategy, and do more with less in order to remain competitive. The
paper seeks to show that Effective Performance Management has become the core of Human Resource
and is revitalizing, reenergizing and rejuvenating HR. The challenges faced by the present day
organization are broadly classified under the effectiveness of its performance management systems,
which ultimately acts as a catalyst for employee engagements and their effective performance. This
paper is explicitly directed towards the current situation, root cause of the problem of implementing
performance management system which is energizing human resources and serves interesting food for
thought for the future managers dealing with performance management.
Key words: Performance Improvement, Human Resource, Business Strategy, Performance
Improvement.
INTRODUCTION
Performance Management, as pertaining to human resource management(HRM), is the
process of delivering sustained success to organizations by improving capabilities of individuals and
teams. It supports the philosophical principle that people and not capital provide organizations with a
competitive advantage. However, performance management presents severe challenges in terms of
practical implementation. While human resources professionals clearly understand the importance of
optimal performance management, they often face significant internal obstacles. When someone
mentions performance management or reviews at your organization, what is the typical response? Do
employees and managers alike cringe? Do they avoid performance management related tasks? Do
visions of tracking down incomplete appraisal forms come to mind?
This can be changed. Forward thinking companies are taking steps to successfully address this
negative view of performance management. They are implementing innovative solutions that ensure
processes deliver real results and improve performance. Performance appraisals, performance reviews,
appraisal forms; whatever we want to call them, lets call them gone. As a standalone, a performance
appraisal is universally disliked, after all how many people in any organization want to hear that they
were less than perfect last year or how many managers want to face the argument and diminish morale
that can result from the appraisal process. If the true goal of the performance appraisal is employee
development and organizational improvement, we consider moving to effective management
performance management system. There has been a paradigm shift in the focus of HR from the early
days where crafts people organized guilds using unity to improve working conditions. Companies in
todays era focus on performance of employees which in turn helps the organizations performance. No
doubt that effective performance management has become a core of HR.
Goal setting, performance planning, performance monitoring, feedback and coaching is

ongoing and supports the creation of the performance appraisal, which in turn supports processes
related to rewards, learning and development. Performance monitoring, feedback and coaching creates
a separate feedback loop within the larger loop which should take place more often, allowing for
necessary adjustments to performance planning as conditions dictate.
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So what is Performance Management?
Performance Management is the systematic process by which an agency involves its
employees, as individuals and members of a group, in improving organizational effectiveness in the
accomplishment of agency mission and goals.
The root cause of the problem does not appear to lie in a lack of ability within the managerial
population to honestly and accurately assess and evaluate an employee's performance and potential.
The root cause of the problem is that, to a greater or lesser extent, the vast majority of managers cannot
actually translate what they know about that performance into useful information and then
communicate it to the employee in an effective and practical way regardless of the method they are
asked to use. This is a fundamental problem because the success of any formal or informal approach to
EPM is ultimately dependent on the honesty and caliber of the information the employee receives in
combination with the quality of the face-to-face discussion that should accompany it.
Why does this problem exist?

The cause of the problem seems to lie in the way in which managers, being human, form their
opinions about their employees. It happens like: when managers form opinions about employee
performance, they instinctively analyze both objective and subjective data collected from observing
and interacting with them over time and in a wide variety of circumstances and situations. Objective
data obviously include any measurable results produced by the employee that can be related to
previously defined objectives or performance standards. Subjective data, on the other hand, include a
myriad of less tangible and therefore less measurable factors. It is the interpretation of this combined
objective and subjective data that managers use to form the opinions, judgments and conclusions upon
which they base their impressions about an employee's overall performance - i.e. how the employee is
'doing'.
Examples include things like, "good worker,' "good interpersonal skills,' "politically naive,'
"no leadership ability,' "not a team player,' "too edgy,' "no credibility with subordinates,' etc. From this
mental impression, the manager also draws conclusions about this employee's 'fit' in the organization,
as well as what it might mean for his or her future potential. Positive fuzzies, such as 'You have good
communication skills,' are easy for managers to talk about even if they don't do a technically good job
of it. However, bringing up the negative ones can be brutal. For example take: 'You have no credibility
with your subordinates,' or, 'You have no leadership ability,' or 'You're politically naive'. How do
managers go about bringing up these kinds of issues? Assuming they could muster enough courage to
do so, the first response from the employee would inevitably be something like: 'What do you mean by
that?'This is the crux of the problem. Managers cannot answer this question effectively because, while
they may know what they mean, generally they cannot articulate, explain, justify, or communicate it
without the risk of opening a Pandora's box of possible anxiety, resentment, demotivation, and strained
relationships!
Proposed Solution
The answer to improving the quality of both formal appraisal and informal performance-
related feedback lies in helping managers to overcome the difficulties that they face when trying to
articulate what they know about how an employee is (really) doing into individualized quality
information. Moreover, employees are desperate for honest, quality feedback that helps them to achieve
their potential. In its absence, they have to resort to guesswork to figure how they are really doing.
Since they know that their formal appraisal doesn't provide them with the full story, employees try to
interpret clues from management's actions and verbal/non-verbal behavior in order to augment this
information. Since it is notoriously difficult to accurately interpret such data - let alone read minds -
employees end up doing their jobs the way they have always done them because they don't have any
reason to think the approach is not working. However, the old adage, 'no news is good news' is
misleading because, as often as not, it indicates the opposite situation.
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Role and Importance of Effective Performance Management System
Changing individual employee behavior lies at the heart of organizational change
programmes. This is because they ignore or violate established change psychology principles. Senior
management can assume that because they are ready to pro-actively embrace change, their employees
will be equally pro-active. However, imposing action on employees who are not prepared results in
conflict. To be successful in shaping behavior, performance management systems must achieve
acceptance by those being managed. Modern organizations need to respond more effectively to
changing external and internal environments, and organizational learning has become an important
strategic focus.
By anticipating and responding to changes in the environment through proactive learning

interventions, some organizations are evolving into learning organizations. Nonetheless, the question of
how to best transform behaviors through organizational learning and development remains. In reality,
many change initiatives fail because either organizational culture is not ready to change at that time, or
because they do not anticipate the impact of change on human systems.
CONCLUSION
Effective performance management is a key tool of communication and motivation within
organizations seeking a competitive edge through strategic change and control. The performance
management system design has its core element as improving individual performance in accordance
with the organizations performance, keeping in mind employees personal goals. Overcoming barriers
to change through winning the psychological battle of employee involvement by effective performance
and evaluating parameters has become the need of the hour. Performance Management System seeks to
ensure that while individuals contribute their bets, they not only realize and enhance their own
satisfaction and potential, but also help achieve the immediate as well as the larger objectives of the
organization. The road to effective performance management is not always an easy one, but
progressing towards a long-term vision by making manageable changes, step-by-step, will bring about
significant results.
References :
http://www.about.com/humanresources
http://www.trackers.in
Wayne F. Cascio and Herman Aguinis, Applied Psychology in Human Resources
Management 6th edition.
Prem Chanda, Performance Management, Systematically Managing People for Innovation,
Goal Focus, Productivity & Satisfaction, Macmillan publication.
A Handbook for Measuring Employee Performance, Aligning Employee performance plans
with organizational goals, Performance Management and Incentive Awards Division _ PMD
013 _ September 2001
Becker, B., & Gerhart, B. (1996). The impact of human resource management on
Organizational performance: Progress and prospects. Academy of Management Journal
Paauwe, J., & Richardson, R. (1997). Introduction to special issue: Strategic human resource
management and performance. International Journal of Human Resource
Management
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TALENT MANAGEMENT
Mrs. K.SABANA ASHMIN, Assistant Professor, Mrs. A. ANANDHI, Assistant Professor,
Mrs. R. ANITHA, Assistant Professor, Department of Management Studies, R.V.S. College of
Engineering & Technology, Dindigul - 5
ABSTRACT
Talent management is becoming one of the hottest topics in organization which is gaining
popularity as a vital predictor of employee and business performance. Talent management is a process
that emerged in the 1990s and continues to be adopted, as more companies come to realize that their
employees talents and skills drive their business success.
It refers to integration of new workers, developing and retaining existing workers as well as
attracting experienced and qualified persons to work for organization. The current business and
economic environment is suffering a host of weaknesses and in many organizations, they lack
comprehensive understanding of skills, capabilities, key workforces and top talent.
The objective of this paper is to retain the employees by managing, Discovering and
maintaining the components regarding the talent management. This is the latest assessment tools and
training resources to help and capitalize the talent and potential of workforce to improve business
results.
INTRODUCTION
Talent management is a professional term that gained popularity in the late 1990s. It refers to
the process of developing and fostering new workers through on boarding, developing and keeping
current workers and attracting highly skilled workers at other companies to come work for your
company. Talent management in this context does not refer to the management of entertainers.
Companies that are engaged in talent management (human capital management) are strategic and
deliberate in how they source, attract, select, train, develop, promote, and move employees through the
organization
What is talent management?

The term talent management means different things to different people. To some it is about the
management of high-worth individuals or "the talented" whilst to others it is about how talent is
managed generally - i.e. on the assumption that all people have talent which should be identified and
liberated. This term is usually associated with competency-based human resource management
practices. Talent management decisions are often driven by a set of organizational core competencies
as well as position-specific competencies. The competency set may include knowledge, skills,
experience, and personal traits. Talent management is the recruitment, development, promotion and
retention of people, planned and executed in line with our organisations current and future business
goals. Because it is aimed at building leadership strength in depth, it creates flexibility to meet rapidly
changing market conditions. A structured talent management process will systematically close the gap
between the human capital an organization currently has and the leadership talent it will eventually
need to respond to tomorrows business challenges.
Talent Management as a Strategic Approach

We view talent management as a strategic approach to managing human capital throughout the
career cycle: attracting, retaining, developing and transitioning your most important assets.
Attracting Talent: Creating Assessment and Selection Strategies and Processes

Attracting qualified talent is the critical first step in the talent management cycle. The
improving economy, Baby Boomer retirement and other factors are creating keener competition for
talent these days, making this critical step tougher than ever. So how do you get a leg up on the
competition?
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Matching the Right Candidate to the Boss
Matching the right person to the right job is an acknowledged need in organizations. But one
of the toughest challenges in selection often overlooked is matching the right candidate to his
immediate boss. What makes that goal particularly tough is when the boss does not have a clue what
kind of candidate would work well with him. Working with various tools, we can design and customize
assessment exercises and materials. We also identify critical competencies your people will need,
develop success predictors and consult with you on general recruiting strategies.
Retaining Talent: Reducing Turnover and Aligning Talent with Organization Goals
With 75% of employees looking for new employment opportunities at any given time and five
million Baby Boomers expected to retire in the next few years, the war for talent is back on. Companies
that develop successful retention strategies can win that war. Most companies today would
acknowledge that their human assets are their most important asset. But since companies cant own
employees the way they own factories or product, your success or failure hinges on the quality and
duration of the relationships you form with your people: retaining talent.
Seven steps of talent management

Step 1. Starting with the end in mind-our current and future business needs
Step 2. What kind of talent does the business need?
Step 3. What and where are the gaps?
Step 4. Identifying high potentials
4.1 Evaluating current performance.
4.2 Identifying potentials
4.3 Creating an acceleration pool
Step 5. Assessing readiness for Leadership transitions
5.1 Individual Readiness
5.2 Organisational readiness or Talent Audit
Step 6. Accelerating development
Step 7. Focusing and Driving performance
8 (Eight) Principles for success

1. Accurate diagnosis is the first step in effective development
2. Ensure development is tied to where our business is going now and in the future.
3. Development talent needs to represent a balance between fixing weaknesses and leveraging
strengths.
4. Prioritize potential
5. Effective development requires a blend of activities including mentoring, classroom learning,
coaching, job assignments, action learning etc..
6. Dont underestimate the role of management support
7. Creating learning tension will maximize your return
8. Developing others becomes a measurable management performance objective.
Ten traps of talent management

1. Paying lip service to a talent management strategy
2. No clear definition of Leadership
3. Confusing talent management with succession planning
4. Shrouding the process and Ground rules in mystery
5. Waiting for the cream to rise
6. Using subjective data to make crucial decisions about talent
7. Ignoring quirks of personality in promotion decision
8. Lazy thinking about development solution
9. Ignoring the team mosaic
10. Assuming your managers at all levels are Talent Leader
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Four steps to making talent management a core competence
There are four steps that companies can take to quickly assess their talent management process
and begin improving their talent management competency:
Step 1 Identify Key Roles. Analyze the key steps in each part of the talent life cycle (identification
and attraction, hiring and inculcation, motivation and development, appraisal and reward, building and
sustaining relationships) and map the key players and their roles and responsibilities to each stage. Are
there gaps in responsibilities key activities that no one is directly accountable for? Are there
overlapping responsibilities multiple people responsible for the same activity? Are the right people in
the right roles? Are line managers provided with consistent and effective processes, guidelines and
tools for managing talent?
Step 2 Take an Inventory of Your Talent Management Skills. Identify the critical skills needed to
play the key roles in the talent life cycle effectively. To what extent does your company employ people
who possess them? What might you do to improve or develop them? What are you doing in-house that
might be better outsourced? What have you outsourced that you should be doing in-house?
Step 3 Measure the Right Things. Assess the measures you use to evaluate the performance of your
talent management process at each life cycle stage such as offer-to-hire ratios, average tenures of new
hires, performance ranking, skill fit to job requirements, etc. What data are you capturing and
reporting? Does it feed directly into a enterprise talent scorecard? How do these measures align with
your overall talent management strategy?
Step 4 Set Up a Process-Wide Feedback Loop. Everyone managing talent needs to understand the big
picture and to connect their role and responsibilities to the overall objectives of the process. How is
data captured in each stage of the life cycle reported and communicated? How are knowledge and
experiences shared across the process? Where are the information gaps and missed communications?
How much feedback is formally captured and communicated versus informally discussed among staff?
What key actions might you take to improve your feedback mechanisms?
CONCLUSION
The management should be innovative and proactive to win the war of talent. With the next-
generation predictive modeling systems, talent management and workforce planning can be
transformed from reactive administrative functions to proactive systems capable of accurately
forecasting talent demand right to the individual job. Attracting and nurturing talent has become the
single most dominant force. Today attracting brains is more difficult than foreign direct investment.
However, talent is what will make India enduringly competitive. Strategies are to be framed for
overcoming talent shortages. Obstacles to talent are to be identified and overcome. This can make
talent flourish if the enabling social and physical infrastructure is in place. In the words of Anil Ambani
Talent is footless and youth will seek a better quality of life where ever and whenever. A rightly
managed talent turns out to be a gold mine. Its inexhaustible and priceless. It will keep supplying
wealth and value to the organization. In turn, management needs to realize its worth, extract it, polish it
and utilize it. Dont hoard. Talent-spend it lavishly, like a millionaire flashing his luxuries, because
Talent is wealth.
BIBLIOGRAPHY
1. Best practices in Talent Management-Marshall Goldsmith,Louis Carter.

2. The talent Management handbook-Lance Berger,Lance.A.Berger.
3. A conceptual approach to strategic talent Management-Tapomoy Deb.
4. Talent on demand- Peter cappelli.
5. www.oppresentation.com.
6. www.Talentmgt.com
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AN IMPLEMENTATION OF TALENT MANAGEMENT ON SMEs
K.Logasakthi, MBA, Lecturer, VSA School of Management, VSA Group of Institutions Salem.
D.Arul, Lecturer, VSA School of Engineering, VSA Group of Institutions Salem.
M.Vivek, II-MBA, VSA School of Management, VSA Group of Institutions Salem.
INTRODUCTION
In this competitive present scenario, talent having wider role over the Small Medium Scale
Enterprises (SMEs). The objective of this paper to underline the ways to manage the talent effectively,
in order to enlarge the performance of the employees in SMEs.
Talent management refers to the skills of attracting highly skilled workers, of integrating new
workers, and developing and retaining current workers to meet current and future business objectives.
Companies engaging in a talent management strategy shift the responsibility of employees from the
human resources department to all managers throughout the organization. Companies that focus on
developing their talent integrate plans and processes to track and manage their employee talent,
including the following:
Through sourcing, attracting, the firm has to recruit qualified candidates with competitive
backgrounds
By managing and defining competitive salaries
By means of arranging the training and development opportunities
Performance management processes
Retention programs
Promotion and transitioning
More recently, the quality of leadership has been linked with business performance. Research
by Hewitt Associates discovered that 85% of the top 20 performing businesses in a group of 373 held
their leaders accountable for developing top talent, compared to 46% of leaders from the other
organizations.
Moreover, the skills and knowledge of such employees ensure that they are in great demand.
They are valuable to their current employers. They may be even more valuable to their current
employers competitors. Without a talent management strategy focused on keeping critical people
engaged including talent maps, targeted training, clear career paths, job rotation and other development
tools critical employees may be sending out rsums rather than executing the organizations strategy.
This paper will underline the ways to implement the talent management strategy in SMEs and if the
firms followed those strategies in the sense, how far it will sustain in the market and gain the
About Small to Medium Enterprise (SMEs)

Small to Medium Enterprise is depends on whos doing the defining. Industry Canada uses the
term SME to refer to businesses with fewer than 500 employees, while classifying firms with 500 or
more employees as "large" businesses. Nurturing top talent is generally seen as an issue for large
organizations. But smaller companies are under just as much pressure to retain and develop their best
managers, particularly during periods of business growth.
Unfortunately, these crucial stages of growth often coincide with a company's lowest level of
profitability, which is one reason why investment in management development programmes by
medium-sized businesses remains a rarity. Due to the present crisis, retaining talented employees in
SMEs having extreme pressure. In this situation for the purpose of describing, suggesting the problem
the author has chosen this area.
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Current Issues of Talent Management:
In current economic positions, many companies have felt the need to cut expenses. This
should be the ideal environment to execute a talent management system as a means of optimizing the
performance of each employee and the organization. However, within many companies the concept of
human capital management has just begun to develop. In fact, only 5 percent of organizations say they
have a clear talent management strategy and operational programs in place today.
Benefits of the Talent Management
To give a high priority to the recognition and leverage of current and potential talent
To ensure a reliable pipeline of high performing leaders who directly impact on organizational
outcomes
To clarify the standards required and development needs for senior leadership positions
The approach supports a culture of learning within the organizations and across the region
Attraction of talent to the region
Staff will feel valued and committed to the organization.
SMEs with Talent Management
An analysis of the key factors in the SMEs related to talent management (all the staff took part
in this). In order to carry out this analysis, we looked at various aspects of innovation and the
development of talent, such as: diversity, co-creation, collaboration and horizontal structures,
participation, transparency, self-management, freedom, recognition in the workplace, and an
orientation to innovation. We also considered policies to attract and develop talent, commitment to the
job and personal motivation.
Implementation of Talent Management in SMEs

To sustain and stay ahead in SMEs, talent management cannot be ignored. In order to
understand the concept better, let us discuss the stages included in talent management process.
Understanding the Requirements of the Small to Medium Enterprises. The main objective is to
determine the requirement of talent. The main activities of this stage are developing job description and
job specifications. In order to sustain the business the firms may prefer for sourcing the talented
people.
Attracting the Talent- it is important to attract the talented people to work with you as the
whole process revolves around this only. Recruiting the Talent- In this stage when people are invited
to join the organization. Here the firms have to focus on selecting the right people to right job. After the
selection they are trained and developed to get the desired output. Retaining the talented employees
inside organization is very crucial and important role too. Retention depends on various factors such as
pay package, job specification, challenges involved in a job, designation, personal development of an
employee, recognition, culture and the fit between job and talent.
Promotion- No one can work in an organization at the same designation with same job
responsibilities. Competency Mapping- Assessing employees skills, development, ability and
competency is the next step. If required, also focus on behavior, attitude, knowledge and future
possibilities of improvement
Performance Appraisal- Measuring the actual performance of an employee is necessary to

identify his or her true potential. It is to check whether the person can be loaded with extra
responsibilities or not. Career planning; if the individual can handle the work pressure and extra
responsibilities well, the management needs to plan his or her career so that he or she feels rewarded.
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CONCLUSION
Small Medium Enterprises (SMEs) are having significant contribution over the corporate
world. In this situation, the adaptation of talent management strategy in SMEs having wider scope. It is
not easy for the SMEs who took part in the talent management to introduce major changes in their
organizational structure or implement significant improvements in their human resources policies and
practices. However Talent management will work only when managers have a shared understanding
about what it means to be an effective and talented leader.
Ensure talent profiles and skills sets keep pace with sector change and reform. Each
organization must decide for itself the right blend of experiences and skills in such areas as political
and managerial leadership, community leadership; partnership working; managing shared services and
outsourcing.
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HR ISSUES IN MERGERS AND ACQUISITIONS
A.Prabhu, Assistant Professor in Commerce (UG), J.DUKE, Student of III B.Com, Kongunadu Arts
and Science College, Coimbatore.
The post liberalization period was of mergers and acquisitions and still it is continuing as a
strategic driver for market dominance, geographical expansion, leverage in resource and capability
acquisition, competence, adjusting to competition. Merger and Acquisitions are strategic alliances.
People Management plays a critical role in Merger and Acquisition. People issues like staffing
decision, organizational design, etc., are most sensitive issues in case of Merger and Acquisition
negotiations, but it has been found that these issues are often being overlooked.
The ability to succeed in a merger depends entirely on the people who are driving the business
- whether they have creativity, capacity to innovate and ability to execute, and more importantly,
whether they can do these things collaboratively. To ease the merger transition and make sure the
pieces fit together as seamlessly as possible; the HR should take the initiatives in management,
recruitment, structure, retention, and managing cultural change. In a merger, the employees should be
put in a position to see easily that there was value in their daily work lives. It is more important for the
employees to be able to say that they understand why this is happening. To achieve this understanding
in the employees, the company's HR executive minimize their conventional functions as administrators
and payroll experts in favor of more proactive roles as coaches and profit consultants.
Merger and Acquisitions are strategic alliances. In a merger, two companies join together and
create new entity. In an acquisition, one company acquires sufficient shares to gain control of the other
organization.
STRATEGIC DRIVERS OF MERGER AND ACQUISITION

1. Market Dominance: Companies merge in order to gain economies of scale and control over
distribution channel.
2. Geographical Expansion: Companies use acquisitions to extend geographical reach and
global market share through new market entry.
3. Leveraging Competence: Companies merge to leverage their competence in NPD, credit
risk and debt management, etc.
4. Resource and Capability Acquisition: Companies also merge to gain resource and capability
acquisition, which they may lack, and would otherwise, is difficult for them to build on their own.
5. Adjusting to Competition: Companies are sometimes forced into acquisitions by the
acquisition strategy of their principal competitors.
HR ISSUES AND THEIR IMPLICATIONS ON VARIOUS STAGES OF MERGER AND

ACQUISITION
Stage 1: Pre Combination - The HR issues in the pre merger phase are: -
Identifying reasons for the Merger and Acquisition
Forming Merger and Acquisition team leader
Searching for potential partners
Selecting a partner
Planning for managing the process of Merger and Acquisition
Planning to learn from the process
REASONS FOR MERGER AND ACQUISITION

There are numerous reasons for companies to merge or acquire. Some of the most frequent include:
Horizontal mergers for market dominance; economies of scale
Vertical mergers for channel control
Hybrid mergers for risk spreading, cost cutting, synergies, defensive drivers
Growth for world-class leadership and global reach
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Survival; critical mass
Acquisition of cash, deferred taxes, and excess debt capacity
Move quickly and inexpensively
Flexibility; leverage
Bigger asset base to leverage borrowing
Adopt potentially disruptive technologies
Financial gain and personal power
Gaining a core competence to do more combinations
Talent, knowledge, and technology today
HR ISSUES IN MERGERS AND ACQUISITIONS

1) People issues like staffing decision, organizational design, etc., are most sensitive issues in
case of Merger and Acquisition negotiations, but it has been found that these issues are often being
overlooked.
2) Before the new organization is formed, goals are established, efficiencies projected and
opportunities appraised as staff, technology, products, services and know-how are combined.
3) But what happens to the employees of the two companies? How will they adjust to the new
corporate environment? Will some choose to leave?
4) When a merger is announced, company employees become concerned about job security and
rumors start flying creating an atmosphere of confusion, and uncertainty about change.
5) Roles, behaviors and attitudes of managers affect employees' adjustment to Merger and
Acquisition.
ROLE OF HR IN MERGER AND ACQUISITION

Human Resources professional should take an active role in educating senior executives
HR issues that can interfere with the success of the merger and with meeting key business
objectives.
HR professionals can play an active role in the change process by offering interventions that
will help ensure a successful merger.
1. Facilitates Transition Teams: Transition teams are used to study and recommend options for
combining the two companies in a merger. To discourage decision-making based on personal agendas
or politics, human resource professional that facilitate transition teams should work with team leaders
to run effective meetings. This gives all team members an opportunity to contribute their viewpoints.
2. Educate Managers and Employees: To minimize stress and uncertainty in the organization during
the merger process, develop and deliver educational seminars to help employees and managers manage
stress, low morale and productivity issues in work groups. These seminars should focus on specific
issues affecting employees rather than on change management in general.
3. Develop Newly Formed Teams: After implementation of merger as new teams are formed, they
may experience problems arising due to interpersonal conflict, unclear roles and responsibilities, and
confusing procedures. A process to develop newly formed teams, review this process with managers
and supervisors and offer to help launch new teams by providing consultation should be created.
4. Reinforce the New Culture: When two companies with vastly different cultures merge, help the
management to preserve the best aspects of the old company and carry them into the new company.
Find out what cultural characteristics and values senior executives want to preserve from their
respective companies, what they don't want to keep, and what new characteristics they want to
introduce in the new organization. Make a list and ask each level of management for feedback.
Provide management with a development tool. Survey all levels of management about three months
after the merger, to assess progress towards the new culture, and provide feedback to managers.
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5. Involve in Planning, Transition and Integration Teams: HR professionals need to contribute
specific expertise to these teams, enabling the merger to be managed as a project while keeping core
business going. Develop effective ways of collaborating with the planning team from other company in
pre-merger phase. Place framework in place for managing the different phases of the merger. Find
ways in which people from both the companies can get to know each other. Identify how emerging
organization's vision can best be communicated. Take "best of both" rather than "equal shares" or
"acquirer dominates" approach to decide the roles and working practices to be adopted. Decide fair
principles on the handling of redundancies.
CONCLUSION
The strategic requirement that motivate mergers and acquisitions is to create synergy so as to
build a competitive advantage position and finally improve the performance of the joined firms. Given
the high costs of carrying out mergers and acquisitions, and the less than encouraging results so far, it
is essential that top managers understand, prepare for and manage all factors that potentially contribute
to success. Even though it is difficult to isolate the relative contribution of each factor to the success of
Merger and Acquisition, it is apparent that organizational and human resource issues have not received
in practice the level of attention that they should. The major reasons for success in mergers and
acquisitions because of Good Leadership, Well-thought out goals and objectives, Due diligence on hard
and soft issues, Well-managed Merger and Acquisition team, Successful learning from previous
experience, Planning for combination and solidification steps completed early, Key talent retained and
Extensive and timely communications to all stakeholders.
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A STUDY QUALITY OF WORK LIFE OF WORKERS IN MAGNESITE INDUSTRY
K.Logasakthi,. MBA., Ph.D,Lecturer, School of Management, VSA Group of Institutions, Salem.
M.Rajeshkumar., MBA., Lecturer, School of Management, VSA Group of Institutions, Salem.
S.Sudharson, II-MBA, Lecturer, School of Management, VSA Group of Institutions, Salem.
ABSTRACT
Quality of work life is a process by which an organization responds to employee needs that
facilitates their development. It allows them to share fully in making the decisions that design their
lives at work. This objective is to identify the factors which influence the employees quality of work
life and to know about their relationship. Job satisfaction plays a major role in influencing the quality
of employees work life.
Generally, magnesite is having huge contribution for manufacturing various products. It has
developed sophisticated technical knowledge and processing of crude Magnesite through continues
research and development in mines and factories. In order to increase the high productivity in this
industry, workers are having major role and their quality of work life is very vital.
In this study, the researcher has chosen selected magnesite firms for conducting sample survey
from the employees with the intention of providing suitable suggestions. The descriptive research
includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affairs as it exists at present and also describing the characteristics
of a particular individual, group or of a situation.
The firms of magnesite industry have existed the quality of work life although When the firms
are increasing the level of autonomy in workplace and also high degree of work place safety modern
tools and equipments which will leads to high quality of work life of workers.
The quality of work life in an organization can be evaluated on the basis of following points:
Fair compensation and job security
Safe and health working conditions
Personal and career growth opportunities
Participative management style and recognition
Work and quality of life
Social integration at work place.
OBJECTIVES OF THE PAPER

To draw the level of autonomy of workers in working environment
To identify the factors which influence the quality of work life.
To analysis the workplace requirements of workers to extreme quality of work life
To analysis the quality of work life with comparing quality of personal life of workers
To provide the suitable suggestion to the firm for further improvement.
STRATEGIES FOR IMPROVEMENT OF QUALITY OF WORK LIFE

In this present scenario, improving the quality of work life are very essence that too in
magnesite industry having a wider contribution over the manufacturing sector various basic refractory
bricks. The major strategies for improvement in quality of work life include self-managed work items,
redesign and enrichment, effective leadership, supervisory behavior, career development, alternative
work scheduled, job security, administrative organizational and participating management.
Vigorous domestic and international competition drives organizations to be more productive.

Proactive managers and human resource departments respond to this challenge by finding new ways to
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improve productivity. Some strategies rely heavily upon new capital investment and technology.
Others seek changes in employee relations practices.
SUGGESTIONS
Hence, the study reveals that quality of work is very essence in global working environment.
In order to improve the productivity of the magnesite industry, the firms have to be focus on the
essential facilities such as workplace safety, canteen facility, transport facility, appropriate tools,
performance based compensation and level of autonomy in the workplace.
CONCLUSION
Employees are the most important asset of every organization. The employees play a vital role
in the working of an effective organization. Therefore the productivity and profit making capacity of an
organization is very much dependent on the satisfaction of its employees and this satisfaction can only
be achieved by providing a better quality of work life for the employees. Thus a good quality of work
life is an important construct to motivate, boost and to improve the work efficiency of employees. Also
quality work life is necessary to increase the mutual respect, positive dialog and participation among
the employees and increase the efficiency of the organization.
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WORK ENGAGEMENT
R.MANJU SHREE MBA, M.Phil, ( Ph.D), Assistant Professor, RVS Institute of Management studies,
Kumarankottam campus, Kannampalayam,Coimbatore 641 402.
ANN MARY JOSE Student, RVS Institute of Management studies,
Kumarankottam campus, Kannampalayam, Coimbatore 641 402.
ABSTRACT
The worlds top-performing organizations understand that work engagement is a force that
drives business outcomes. Researches shows that engaged employees are more productive employees.
They are more profitable, more customer-focused, safer, and more likely to withstand temptations to
leave the organization. In the best organizations, work engagement transcends a human resources
initiative it is the way they do business. Work engagement is a strategic approach supported by
tactics for driving improvement and organizational change. The best performing companies know that
developing a work engagement strategy and linking it to the achievement of corporate goals will help
them win in the marketplace. The paper has covered the relationship between Maslows theory with
work engagement and the various drivers of the same.
1. Introduction
Work Engagement is the extent to which employee commitment, both emotional and
intellectual, exists relative to accomplishing the work, mission, and vision of the organisation.
Engagement can be seen as a heightened level of ownership where each employee wants to do
whatever they can for the benefit of their internal and external customers, and for the success of the
organization as a whole.
Engagement ratio is a macro-level indicator of an organizations health that allows executives

to track the proportion of engaged to actively disengaged employees. The average working population
ratio of engaged to actively disengaged employees is near 2:1. Actively disengaged employees erode an
organizations bottom line, while breaking the spirits of colleagues in the process. In stark contrast,
world-class organizations that have built a sustainable model using Gallups approach have an
engagement ratio of more than 9:1. As organizations move toward this benchmark, they greatly
reduce the negative effect of actively disengaged employees while unleashing the organizations
potential for rapid growth.
MASLOWS HIERARCHY OF NEEDS THEORY

The psychologist Abraham Maslow developed a theory that suggests we, humans, are
motivated to satisfy five basic needs. These needs are arranged in a hierarchy. Maslow suggests that we
seek first to satisfy the lowest level of needs. Once this is done, we seek to satisfy each higher level of
need until we have satisfied all five needs.
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The higher up the hierarchy of needs one moves the greater the chance for engagement.
Drivers of Engagement
While it is possible to measure engagement itself through employee surveys, this does not
assist in identifying areas for improvement within organisations. There are a range of factors, known as
drivers, that are thought to increase overall engagement. By managing the drivers, an organisation can
effectively manage engagement levels of its employees. Drivers such as communication, performance
clarity and feedback, organisational culture, rewards and recognition, relationships with managers and
peers, career development opportunities and knowledge of the organisation's goals and vision are some
of the factors that facilitate employee engagement. Some points from the research are presented below:
* Employee perceptions of job importance - According to a 2006 study by Gerard Seijts and Dan
Crim, "...an employees attitude toward the job['s importance] and the company had the greatest impact
on loyalty and customer service then all other employee factors combined."
* Employee clarity of job expectations - "If expectations are not clear and basic materials and
equipment not provided, negative emotions such as boredom or resentment may result, and the
employee may then become focused on surviving more than thinking about how he can help the
organization succeed."
* Career advancement/improvement opportunities - "Plant supervisors and managers indicated that

many plant improvements were being made outside the suggestion system, where employees initiated
changes in order to reap the bonuses generated by the subsequent cost savings."
* Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a sense
of where theyre going, but many organizations are remarkably bad at giving it.""'What I really wanted
to hear was 'Thanks. You did a good job.' But all my boss did was hand me a check.'"
* Quality of working relationships with peers, superiors, and subordinates - "...if employees'
relationship with their managers is fractured, then no amount of perks will persuade the employees to
perform at top levels. Employee engagement is a direct reflection of how employees feel about their
relationship with the boss."
* Perceptions of the ethos and values of the organization - "'Inspiration and values' is the most
important of the six drivers in our Engaged Performance model. Inspirational leadership is the ultimate
perk. In its absence, [it] is unlikely to engage employees.
SUMMARY AND CONCLUSION
Increasing employee engagement directly correlates with a positive effect on key business
metrics. Performance Optimization approach offers an innovative, research-based approach to one of
the toughest challenges businesses face today: how to drive success by effectively managing the
moments when employees interact with customers. This approach brings employee and customer
engagement on to a single management platform.It combines a proven method for assessing the health
of the employee-customer encounter with a disciplined process for improving it Organizations
employing Performance Optimization principles have outperformed their competitors by 26% in gross
margin and 85% in sales growth. Their customers buy more, spend more, return more often, and stay
longer. Blending strategic analysis with hands-on, practical steps and advice, Performance
Optimization changes how leaders view their work, their employees, and their customers.
RECOMMENDATIONS
Improving engagement goes beyond simply asking the right questions.Engaging employees
requires a year-round focus on changing behaviors, processes, and systems to anticipate and respond to
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your organizations needs. From the leadership team to the frontline employees, all levels within
anorganization must commit to making these changes.
World-class organizations make employee engagement a priority by focusing on the following:
Strategy
World-class organizations develop a formula for success by looking objectively and rigorously at the
business problems they face and by focusing on finding the right employees and keeping them
engaged. For these organizations, an employee engagement strategy is not only fundamental to the way
they do business, it is critical to their success.
Accountability and Performance

The top-driven companies focus on outcomes. They define and rigorously measure success at every
level in the organization. These measurements ultimately help focus each person, team, department,
and business unit on driving performance and results.
Communication
Within the best performing organizations there is a cultural alignment between the employees and the
company, paired with a strategic alignment between activities and company goals. These organizations
use their corporate communication touch points to reinforce their commitments to employees and
customers.
Development
As the struggle for talent intensifies, organizations face a continual challenge to build and grow their
leadership capacity. The worlds top-performing companies have comprehensive leader and manager
development programs, but they also go one step further these programs are performance-driven and
incorporate a comprehensive succession plan throughout the organization. They make it a priority to
not only identify leadership potential, but also to focus intently on the creation of developmental paths
for current and future managers and leaders.
REFERENCES
Ayers, Keith (2008) Engagement Is Not Enough: You Need Passionate Employees to Achieve
Your Dream.
Kahn, William A. (1990). Psychological Conditions of Personal Engagement and
Disengagement at Work. The Academy of Management Journal, Vol. 33, No. 4 (Dec., 1990),
pp. 692724. http://www.jstor.org/stable/256287
Harter, James K.; Schmidt, Frank L.; Hayes, Theodore L. (2002). Business-unit-level
relationship between employee satisfaction, employee engagement, and business outcomes: A
meta-analysis. Journal of Applied Psychology. Vol 87(2), Apr 2002, 268-279
Macey, Schneider (2008). The meaning of employee engagement. Industrial Organizational
Psychology.
McKay, Avery, & Morris (2008). Mean racial and ethnic differences in sales performance:
The moderating role of diversity climate. Personnel Psychology, 61, 349-374.
Meyer & Allen (1991). A three component conceptualization of organizational commitment.
Human
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LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING ENSURING
LEADERSHIP CONTINUITY & BEST PRACTICES IN SUCCESSION PLANNING
S.Viviliya Paulin, Asst.Professor Guruvayurappan Institute of Management, Coimbatore
ABSTRACT
The topic Emerging trends in global business with respect to leadership development and
succession planning clearly reveals that succession planning helps in identifying and developing
internal people with the potential to fill key leadership positions in the company. It develops strategies
to accomplish successful transitions in leadership roles critical to an organizations long term success.
Succession planning gains importance because the high potentials will one day become leaders of the
company. The quality and depth of a company's leadership pipeline drives competitive advantage.
Succession planning is becoming an increasingly distinct strategic imperative.
Before going in deep about the topic, we it is essential to know the challenges that
organizations face in leadership development and succession planning. Only when a clear
understanding is made on the issues, the study would become more productive as problems would lead
to solutions that is, organizational issues would result in coming up with the new trends in the
competitive business. More and more organizations are beginning to understand the need for
developing some type of succession planning strategy.
There are certain pitfalls in leadership development and succession planning. Most succession
plans are irrelevant to the challenges of todays business environment. Organizations are unable to
effectively execute the succession plan due to certain reasons like lack of formal written plan, lack of
human resources and financial resources, selection of unqualified people etc. Employee retention,
along with an empowered workforce has become a challenge for todays business. Many organizations
are unable to easily provide information on internal career options to their employees which would
thereby benefit the employees as well as the organizations. Poorly developed talent review process is
one major drawback in succession planning process. Inadequate training provided without
understanding the training needs leads to pitfall. Therefore it is estimated that by the end of 2011, most
global organizations will lose 40 percent of their top executives leaving a vacuum that has to be filled
by the rising stars in the company.
With the impending retirement of baby boomers and increased demands for diversity, leading
organizations are building systems that provide talented, high performers opportunities to grow. In
most global organizations, leadership development initiatives are considered an integral part of the
corporate strategy. In fact, a recent survey carried out by the American Management Association found
that companies spend the largest part of their corporate training budget on leadership development. The
companies of today started developing leadership competencies for all management levels. Potential
leaders from within the organization are assessed on the basis of these competencies and are included
in the succession planning process.
INTRODUCTION ON THE TOPIC

For each and every organization to succeed, the top management and its continuity plays an
important role. Succession is a challenging endeavor even in the best scenarios. Planning for succession
is very much essential for any business. A succession plan is vital for confirming, communicating and
implementing when retirement is on the horizon. In order to groom the next generation of corporate
management, planners must be clear on what tactical skill requirements will be essential for corporate
leadership and growth. A clear and unequivocal business plan in tandem with future leadership skill set
deliverables is the integral ingredient necessary to ensure the success of succession.
CLEAR UNDERSTANDING ON SUCCESSION PLANNING

Organizations need to ensure that their human resources practices support the recruitment,
development and retention of appropriate leadership personnel. Effective succession planning identifies
future organizational needs, potential future leaders, inspires leadership aspirations, bases the selection
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processes and programme design on future leadership capabilities, creates pool of talent and recognizes
multiple paths to leadership. It provides for the development of future leaders and the on-going
development and retention of current leaders.
The key elements of a succession planning process are:

Candidate Selection
Experience
Training & Development
Visibility
Time period
ISSUES FACED BY THE CORPORATE IN SUCCESSION PLANNING

It is estimated that by the year 2011, most global organizations will lose 40% of their top
executives, leaving a vacuum that has to be filled by the rising stars in the company. In the era of
seasoned professionals, it has become necessary to identify and develop leaders from within the
organization and empower them with additional responsibility to assume increasing levels of
leadership. Beyond the current economic turmoil, we are still facing predictions that Baby Boomers
will be retiring in droves in the next five year and that there will be a shortage of job candidates 35-50
years old to replace those Baby Boomers when they leave. Succession planning not only paves way for
the organization in saving the cost of external hiring and training by creating leaders within the
organization but it also helps in transition or change management and improves the corporate image.
SUCCESSION PLANNING IN MAJOR COMPANIES

Global human resources consulting firm Hewitt Associates had conducted a leadership study
earlier this year which revealed that 91% of the top companies have a process for early identification of
leaders compared with 61% of the rest, also 82% of the top organizations have formal mentoring
programmes in comparison to half of the others.
IBM which led the list has 11 leadership competencies for all management levels. Potential
leaders from within the organization are assessed on the basis of these competencies and are included
in the succession planning process. Microsoft, which ranked second, is known to attract talent and it is
at the hiring stage that the potential stars are identified to be aggressively groomed later.
Infosys has leadership strategy firmly in place with the top management focused on creating
the next line of successors. The Infosys Leadership Institute is set up with the objective of transforming
the company and developing the next generation leaders. The (ILI) has designed and facilitated a series
of highly successful, innovative and dynamic leadership workshops under the leaders tech series. It
trains 220 high potential employees every year to meet the challenges of a changing environment. The
leaders tech series is a set of learning interventions, designed jointly by the board members of the
company and the ILI faculty.
Wipros leadership programmes are evidently designed to integrate the vision of the
organization with the long term business planning. Wipros vision of becoming a diversified global
organization with a multi-cultural work force is clearly incorporated in the programmes. This global
work culture will require the leaders to have a global mindset along with the ability to lead in cross-
cultural environment which is developed through these leadership programmes.
Leadership strategy is a critical part of TCSs business planning process. Succession is

planned in each practice which happens to be the business units of the company. They get to
understand the strategic issues and through this a leadership team emerges.
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THE FUTURE OF SUCCESSION PLANNING & LEADERSHIP DEVELOPMENT
Decision makers will seek flexible strategies to address future organizational talent needs
Decision makers will seek integrated retention policies and procedures
Succession Planning and management issues will have a global impact
Succession planning will emerge as an issue in government agencies, academic institutions
and non-profit enterprises
CONCLUSION
For an industry that thrives on the dynamics of constant change, only those with foresight and
the ability to counter unexpected challenges succeed. The whole process of training these future leaders
is time consuming and requires a lot of additional resources, but in the long run it is a worth.
Organizations have found that although management training goes some way in developing future
leaders, it does not deliver the range of experience they require for future leadership roles. Therefore
succession planning is the only process the organizations have which helps them to deliver tailored,
pro-active career development for its most talented individuals and align them with business needs.
Most large organizations have concluded that modern succession planning is a crucial part of their HR
strategy.
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LEADERSHIP FOR NEXT DECADE
Deepa Ramachandran , Faculty Member, DBA school of advanced studies, Bangalore,
and Dr .P. Karthikeyan, Assistant Professor,Kongu Engineering College,Perundurai,
ABSTRACT
The next decade will bring with it diverse problems that would require new solutions, based on
new ways of thinking. Gone would be the mechanical, technical approach to leadership. Leaders must
then be able to transcend conflict. It is an imperative that we transcend the current model of business
leadership skills if we want to successfully navigate the next decade .Our world in its increasing
complexity requires business leadership skills that are far in advance of business as usual. We would
need a game change.
We would need to advance our cognitive, emotional, physical and spiritual awareness to a high
degree that we become tuned in to the very subtleties of energy flow and change developing the whole
self, not just the exterior behaviors, but also the interior wisdom to appreciation for diverse
perspectives , and more than this , the ability to be able to work with people with diverse perspectives
and hold all in respect .
Tomorrows leaders would need to make themselves comfortable with the unknown and be able
to stand grounded in uncertainty. They should be able to collaborate, network, build relationships
above and beyond the traditional line of what may seem relevant or useful.
INTRODUCTION
It is possibleand fruitfulto identify major events that have already happened,
irrevocably, and that will have predictable effects in the next decade or two. It is possible, in other
words, to identify and prepare for the future that has already happened -Peter Drucker, 1997.
Leaders in the future will need to have Vision, Understanding, Clarity, and Agility.
The key leadership challenges for the next decade would be :

1. Managing change The next decade would be marked by changes in technology , processes ,
rules , regulations and policies , business practices, competition and the positioning in the global arena .
Great leaders would need to anticipate this in advance and take calculated decisions.
2. Communication (lack thereof) effective communication with all stakeholders would be very
essential for roping-in confidence and steering ahead in era of rapid changes , and the lack of it will
spell doom .
3.
Management based on values Values gives a strong foundation on which the business can
survive even in turbulent times. Corporations built on a strong value system will be able to endure
changes, survive and succeed in the coming years[3]. In leadership, character matters[4].
4. People skills people are the key for any business. The next decade would see a workforce
thats a blend of different nations, diverse cultures and varying skills levels. It would be a challenge to
lead teams spread across many nations and combining their efforts to ensure business success.
5. Leadership development- a new form of leadership and leadership development -- leadership
that has the willingness to develop insights about the rapidly changing world and the aptitude to turn
those insights into action by inspiring people would be the mantra.
6. Innovation The leaders of the new era would need to innovate resourcefully[5] . Innovation to
stay ahead and to differentiate from other competitors is the key.
7. Work / life balance changes and ambiguity at workplace increases the pressures and work
life balance is affected. Its very important to have work /life balance and sufficient time for family or
else the coming decade would witness a sharp rise in breakups and a ruptured society.
During the last half of the 20th century, business leadership became an elite profession, dominated by
managers who ruled their enterprises from the top down. Influenced by two World Wars and the
Depression, organizational hierarchies were structured along military lines, with multi-layered
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structures to establish control through rules and processes. People climbed the ranks in search of
power, status, money and perquisites, as described in William H. Whyte's 1956 classic, The
Organization Man, and Sloan Wilson's 1955 novel, The Man in the Gray Flannel Suit.
In the last quarter of the twentieth century the stock market became increasingly short-term,
causing corporate leaders to concentrate on quarterly earnings, often to the exclusion of long-term
growth. In the past decade it all blew up, from the ethical scandals exposed by Enron and WorldCom to
the Wall Street meltdown. As a result, people lost trust in business leaders to build sustainable
institutions instead of serving themselves and short-term shareholders.
The hierarchical model simply doesn't work anymore. The craftsman-apprentice model has
been replaced by learning organizations, filled with knowledge workers who don't respond to "top
down" leadership. Seeking opportunities to lead, young people are unwilling to spend ten years waiting
in line. Most important, people are searching for genuine satisfaction and meaning from their work, not
just money.
In response to these changes, a new generation of leaders is reshaping the best-led global
companies. Authentic leaders focused on customers are replacing hierarchical leaders that focus on
serving short-term shareholders. Typical of these leaders is Unilever CEO Paul Polman, who recently
told the Financial Times, "I don't work for the shareholder. I work for consumers and my customers."
In next decade the most successful leaders will focus on sustaining superior performance by aligning
people around mission and values and empowering leaders at all levels, while concentrating on serving
customers and collaborating throughout the organization.
Aligning: The leader's most difficult task is to align people around the organization's mission
and shared values, which is far more challenging than making short-term numbers. Gaining alignment
is especially difficult in far-flung global organizations where local employees may be more loyal to
native cultures than their employers, especially regarding business practices.
Traditional leaders thought they could solve this problem with rulebooks, training programs
and compliance systems, and were shocked when people deviated. Aligned employees commit to the
mission and values of the organization, and want to be part of something greater than themselves.
Johnson & Johnson is a classic case of an aligned organization that uses its famed Credo to guide
global employees in their actions.
Empowering: Hierarchical leaders delegate limited amounts of power in order to retain

control. In contrast, leaders of the next decade would need to empower leaders at all levels, combined
with sophisticated accountability systems to ensure commitments are met.
Front-line leaders without direct reports are especially needed.
Serving: The leader's first obligation is not to shareholders, but rather to customers. CEOs
who spend too much time listening to Stock markets risk ignoring their most important stakeholder
their customers. Any organization that doesn't provide its customers with superior value relative to
competitors will find itself going out of business. Employees are much more motivated by serving
customers than they are by getting stock prices up, and that's what leads to innovation and superior
customer service. Satisfied customers and motivated employees are key to sustaining revenue growth
and, ultimately, shareholder value.
Collaborating: The challenges businesses face these days are too complex to be solved by
individuals or even single organizations. Collaboration within the organization and with customers,
suppliers, and even competitors is required to achieve lasting solutions. Leaders must foster this
collaborative spirit, eliminating internal politics and focusing on internal cooperation. After becoming
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CEO of IBM, Sam Palmisano transformed IBM's long-standing bureaucracy into an "integrated global
network," shifting to "leading by values" and breaking down silos that kept people from collaborating.
CONCLUSION
Leadership is changing. It has moved from command and control to connect and
collaborate, from hierarchy to network, and from push to pull. This requires new approaches and new
skills. Done right, leaders can engage people in developing shared insights, align them through shared
meaning and purpose, get their commitment and accountability.The next decade surely holds a promise
of a rapid evolution in the space of leadership. And as adaptability is the key strength of human race,
we would see a new breed of leaders who would be able to tackle the complexities with ease.
REFERENCES:
1) Leading into the Future, A Global Study of Leadership :2005- 2015 , American Management
Association ,
2)Johansen Bob, Leaders Make the Future: Ten New Leadership Skills for an Uncertain World ,
Berrett-Koehler Publishers (2009)
3) Barrett Richard ,Building a Values-Driven Organization: A Whole System Approach to Cultural
Transformation , Elsevier Inc 67 (2009).
4) Alldredge, M., Johnson, C., Stoltzfus, J., & Vicere, A. Leadership Development at 3M: New
Processes, New Techniques,New Growth. Human Resource Planning, 26(3): 45-55. (2003).
5) Bass, B.M. & Steidlmeier, P. Ethics, Character, and Authentic Transformational Leadership
Behavior. Leadership Quarterly: Special Issue, Part I: Charismatic and Transformational Leadership:
Taking Stock of the Present and Future, 10(2): 181-217 (1999).
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EMERGING TRENDS IN GLOBAL BUSINESS FROM BREAD BAKER TO BREAD
EARNER THE NEW ROLE OF WOMEN IN MANAGING WORK AND LIFE.
Smitha Mathew & G H Kerinab Beenu, AP- MBA, Tagore Engg. College, Chennai - 48
INTRODUCTION
Work life and personal life are integral part of human being, maintaining work-life balance is
not an easy task. Work/life balance is about adjusting working patterns to allow employees to combine
work with their other responsibilities such as caring for children or elderly relatives. Introducing
appropriate employment practices to help employees achieve a better work/life balance brings tangible
benefits to your business. It can enable employees to feel more in control of their working life and lead
to increased productivity, lower absenteeism and a happier, less stressed work force. Certain employees
have the right to request flexible working. Demographic changes, including an ageing population and
smaller family structures, will increase the likelihood of your employees requesting flexible working
arrangements. A significant proportion of work/family balance issues arise because of the choices
individuals have to make between paid work and family responsibilities. In the past men have tended to
specialize in market activities and women in household activities as a result of inherent differences in
comparative advantage. However, as womens human capital has increased, so too has the opportunity
cost of remaining at home and rearing children, and more women have entered the workforce. This
trend is likely to have affected fertility rates. With more women in work, the family has been required
to make more conscious decisions around paid and unpaid work in the home, decisions which include
care for dependents.
Review of Literature
A considerable part of the literature (Hardy a Adnett, 2002; Johnes, 1999; Powell, 1998;
Mackey Jones & McKenna, 2002) consider that work-life policies tend to strengthen gender
inequalities, rather than diminishing them.
Hardy and Adnett (2002) argue that : "Currently, the tentative steps taken to encourage the
extension of family-friendly working practices through mandatory rights increase rather than reduce
gender inequalities".
According to the above cited literature body, this result from the failure to design family-
friendly measures reflecting and responding to the large gender inequalities existing in the labour
market. One of the main arguments encountered is that by focusing on child care, parental leave and
part-time work, WLB policies implicitly target women, who are traditionally the ones in charge of the
care giving in the couple. (i.e. mothers employed full time spend more than twice as much time as
father on both childcare and unpaid household work)(1) Part time work, one of the most proposed
family-friendly in the organisations, is often understood by employees and employers as an opportunity
to get more time to fulfill family duties. As these duties are more often than not considered a womans
responsibility, women are the main users of Part-Time work. In the EU, one third of employed women
work part-time, five times more than men ( Hardy & Adnett, 2002). Studies reviewed concur that Part
Time work was actually keeping most women in low status jobs (Whittock et al, 2002; Wise & Bond,
2003; Dainty, Bagilhole & Neale, 2000 ; Nadeem & Hendry, 2003, Marks, Huston, Johnson &
MacDermid, 2001; Powell, 1998; Kimmel, 1997)
NEED FOR THE STUDY

This study aims at analyzing the work life balance among women professionals in managerial
level in Chennai city. The need for this study is to find out how well women professionals balance their
work and life and their attitude towards work and life also to create awareness about work life balance
and to find strategies in balancing their work and life.
391
The research aims at analyzing the work life balance among women professionals. The study
also concentrates to find out the personal and work demands, the factors that affect work life balance
and the way to improve the quality of work and family life.
The type of research carried out for this study is descriptive in nature. Descriptive research
includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive
research is description in the state of affairs, as it exists at present. The area of the study is confined to
the women professionals in Chennai city. The primary data is the main source of data which was
collected through a structured questionnaire, as the population is infinite a sample of 50 women
professionals in the managerial level views were taken through a non probability convenience sampling
method.
LIMITATIONS OF THE STUDY

Area of the study is confined to the women employees in managerial level only.
The findings of the study are subjected to bias and prejudice of the respondents.

1. Characteristics of the Sample
Age Number of Respondents Percentage
20-25 3 6
25-30 11 22
30-35 17 34
>35 19 38
Marital status Number of Respondents Percentage
Married 29 58
Unmarried 16 32
Divorced 5 10
Child status Number of Respondents Percentage
Single Child 16 53
Two Children 10 33
More than two children 4 14
Parental status Number of Respondents Percentage
Single parent 6 20
Dual parent 24 80
38% of the women professional in managerial level are in the age group of above 35 years and 6% of
women are in the age group of 20 to 25 years.
58% of women are married, 32% are unmarried and 10% are divorced.
53% of respondents have single child, 33% of respondents have two children and 14% of respondents
have more that two children.
80% of respondents are dual parent and 20% are single parent.
2. Work family Balance

Able to spare time for family Number of Respondents Percentage
Always 14 28
Sometimes 31 62
Never 5 10
Schedule time to be spent with family Number of Respondents Percentage
Spend special time with family 17 34
Try to get time with family 21 42
Willing to get time but could not 12 24
392
Priority of respondents career Vs. Family Number of Respondents Percentage
Career 32 64
Family 18 46
Frequency of having extended work hours Number of Respondents Percentage
Never 6 12
Rarely 13 26
Sometimes 20 40
Often 6 12
Always 5 10
62% of women sometimes able to spare time for family, 28% of women always able to spare time for
family and 10% of women never able to spare time for family.
42% of women try to get time with their family as per the schedule, 34% of women spend quality of
time with their family as per the schedule and 24% of women spend time with their family but they
could not spend as per the schedule.
32% of women give priority to their career and 46% women give priority to their family.
20% of women sometimes have extended work hours and 10 % of women always have extended work
hours.
3. Planning of work-family commitments

Frequency of preparing a To Do List Number of Respondents Percentage
Never 6 12
Rarely 7 14
Sometimes 17 34
Often 11 22
Always 9 18
Able to balance work and family life Number of Respondents Percentage
Yes 27 54
No 23 46
34% of women sometimes prepare To do list and 12% of women never prepare To do list.
54% of women are able to balance the work and family and 46% of women are not able to balance the
work and family.
4. Organizational efforts in work-family Balance

Allocation of time is sufficient for completing
Number of Respondents Percentage
projects
Always 15 30
Sometimes 24 48
Never 11 22
Work life programmes are organized at work Number of Respondents Percentage
Yes 34 68
No 16 32
48% of women sometimes have sufficient time for completing projects, 15% of women always have
sufficient time for completing projects and 11% of women never have sufficient time for completing
projects
68%of womens organization provide work life balance programme and 32% of womens organization
does not provide work life balance programme.
393
5. Simple ranking method on the factors affecting work family balance
RANK Ove
Weighte
rall
S.No. Factors d
1 2 3 4 5 6 7 8 9 10 Ran
Average
k
1. Job satisfaction 5 4 6 8 5 5 4 5 3 5 5.74 III
2. Work pressure 4 5 4 5 7 5 6 4 5 5 5.4 VI
3. Late working hours 5 7 4 5 5 4 6 5 4 5 5.64 IV
4. Lack of prioritizing 8 6 5 6 4 5 4 4 5 3 6.12 I
5. Taking work to home 7 5 6 4 5 6 4 5 4 4 5.88 II
Expectations of family
6. 4 5 7 4 6 5 4 5 5 5 5.52 V
members
7. Stress 5 5 5 4 5 5 4 7 6 4 5.42 VII
8. Long travel hours 3 5 4 5 4 5 5 6 5 8 4.94 X
Unhealthy attitude of
9. 5 4 5 4 4 5 5 4 8 6 5.14 IX
superior
Unhelpful nature of family
10. 4 4 4 5 5 5 8 5 5 5 5.2 VIII
members
* Weights = 10,9,8,7,6,5,4,3,2,1
It is inferred that most of the respondents feel the main reason for poor work life balance is lack of
prioritizing and the least reason for poor work life balance is long travel hours.
6. Chi square test on whether there exist a significant relationship between the age of the
respondents and the ability to balance work and family
Ho: There is no significant relationship between the age of the respondents and the ability to balance
work and family
H1: There is significant relationship between the age of the respondents and the ability to balance work
and family
Observed Frequency (Oi) Expected Frequency (Ei) (Oi Ei) 2 (Oi Ei) 2/ Ei
2 1.62 .1444 .072
1 1.38 .1444 .1444
6 5.94 .0036 .0016
5 5.06 .0036 0.001
8 9.18 1.3924 0174
9 7.82 1.3924 .155
11 10.26 0.5476 .049
8 8.74 0.5476 .068
50 .664
Calculated Value: .664
DOF: 3
Table Value@ 5% Significance level: 2.605
Since C Val < T Val, Ho is accepted thus there is no significant relationship between the age of the
respondents and the ability to balance work and family.
FINDINGS:
It is found that 38% of the women professional in managerial level are in the age group of
above 35 years and 6% of women are in the age group of 20 to 25 years.
58% of women are married, 32% are unmarried and 10% are divorced.
53% of respondents have single child, 33% of respondents have two children and 14% of
respondents have more that two children.
394
80% of respondents are dual parent and 20% are single parent.
The study reveals that 62% of women sometimes able to spare time for family, 28% of women
always able to spare time for family and 10% of women never able to spare time for family.
42% of women try to get time with their family as per the schedule, 34% of women spend
quality of time with their family as per the schedule and 24% of women spend time with their
family but they could not spend as per the schedule.
It is found that 32% of women give priority to their career and 46% women give priority to
their family.
20% of women sometimes have extended work hours and 10 % of women always have
extended work hours.
34% of women sometimes prepare To do list and 12% of women never prepare To do list.
The study reveals 54% of women are able to balance the work and family and 46% of women
are not able to balance the work and family.
48% of women sometimes have sufficient time for completing projects, 15% of women
always have sufficient time for completing projects and 11% of women never have sufficient
time for completing projects
It is inferred that 68%of womens organization provide work life balance programme and 32%
of womens organization does not provide work life balance programme.
Most of the respondents feel the main reason for poor work life balance is lack of prioritizing
and the least reason for poor work life balance is long travel hours.
The study reveals that the age of the respondents is not the main factor for balancing work and
family life.
SUGGESTIONS
Most of the employees are middle aged young women and got married. Most of them
feel that they do not have special time to spend with their family. Hence managing their time and take
special leave for the period of a week at least twice in a year will help to spend time with family and
reduce stress level at work.
It is suggested to prepare a do list every day / week to schedule the work at home and at
work as the study shows only very few women prepare the do list that helps in prioritizing the work at
home and at office.
The management also has the part to play in balancing the office work and house work,
thus giving breaks in between new and old projects, conducting counseling programmes and
recreational programmes with peers and family. This will create an interest in work place and giving
importance to family.
The study reveals the main criteria for women work life balance is prioritizing their
work, avoid bringing office work to home and job satisfaction.
The study indicates that the age is not a factor for work life balance; it is the maturity of mind that
helps in identifying the need and focusing on those needs in keeping the work and family life balanced.
CONCLUSION
Work and personal life are mutually dependent and integral part of an individuals life.
Striking a balance between professional and personal priorities is a big challenges for them in todays
world. This paper makes an empirical analysis of the determinants of work life balance among women
professional in managerial level considering variety of personal and work related characteristics. This
study identifies many women professional could not manage their work and life assignments, due to
family and work demands. Thus the study understands the need for prioritizing the work and
compartment of work will improve the intensity of work life balance among women professionals.
395
REFERENCE
Dainty, A., Bagilhole, B. and Neale, R. (2000) "A grounded theory of womens career
underachievement in large UK construction companies", Constructi Management and
Economics, 18, 239-250
Hardy, S. and Adnett, N. (2002) "The Parental Leave Directive: Towards a "Family-Friendly"
Social Europe ?", European Journal of Industrial Relations, Vol. 8:2, 157172.
Johnes, G. (1999) "Schooling, fertility and the labour market experience of married women",
Applied Economics, 31, 586-592
Kimmel, J. (1997) "Child Care Costs as a Barrier to Employment for Single and Married
Mothers", the Review of Economics and Statistics, 80:2, 287-299
Mackey Jones, W. and McKenna, J. (2002) "Women and work-home conflict : a dual
paradigm approach", Health Education, 102:5, 249-259
Marks, S., Huston, T., Johnson, E. and MacDermid, S. (2001) "Role Balance Among White
Married Couples", Journal of Marriage and Family, 63, 1083-1098
Mavin, S. (2001) "Womens career in theory and practice : time for change ?", Women in
Management Review, 16:4, 183-192
396
TALENT MANAGEMENT
Lt Col (Retd) AE Charles, Prof, Nehru Institute of Management Studies
Back ground
It takes a Talent to spot Talent! A tone deaf will never be able to appreciate the music of
maestros. Only a seasoned jeweller would know that all that glitters is not real! And, only those who
can recognise the worth of a diamond can value it, for others it's just a stone! Talent is doing easily
what others find difficult. Talent management implies recognising a person's inherent skills, traits,
personality and offering him a matching job. Every person has a unique talent that suits a particular job
profile and any other position will cause discomfort.
This new age economy, with its attendant paradigm shifts in relation to the human capital, in
terms of its acquisition, utilisation, development and retention, has placed a heavy demand on todays
HR professionals. Today HR is expected to identify potential talent and also comprehend,
conceptualise and implement relevant strategies to contribute effectively to achieve organisational
objectives. Hence a serious concern of every HR manager in order to survive this War for Talent, is to
fight against a limited and diminishing pool of qualified available candidates to replace valuable
employees when they leave, dramatically underscoring the difficulty to attract, motivate and retain the
best employees in an organisation.
A majority of corporations in India are facing the talent management challenge. Although
most companies have visibility of their respective business goals, not many can complement it with a
sound knowledge of the skill level they possess to "achieve" or "not achieve" those goals. Thus, it
comes as no surprise that PWC's annual CEO survey conducted in February 2011 suggests that talent
management heads the priority list of 83 per cent among high-level managers.
TALENT MANAGEMENT PROCESS

To analyze the reasons, we first need to understand what TALENT means. People have
different views and definitions. According to Leigh Branham, vice president,
consulting service at Right Management Consultants and author of the book, Keeping People Who
Keep You in Business, a talent is not rare and precious. Everyone has talent too many to possibly
name all. Talent is behavior; things we do more easily than the next person. We speak of natural born
talent but those with a gift, knack, ability or flair for something can refine and develop that talent
through experience.
Generation X (1964 - 1985): While baby-boomers were wedded to their careers, their
children began experiencing other influences. Two-career parents resulted in children left in the care
and influence of baby-sitters or day care centres. Gen X became self-reliant at an earlier age. They are
casual about authority and formal hierarchies. They are not against authority, just, unimpressed by it.
Most importantly, Gen X developed a strong desire to build relationships. They believe that treating
people with respect and dignity is often just as important as organisational goals. Since they could not
count on company loyalty to them, they developed as free agents who would offer their services to
organisations that are people oriented, have strong commitments to social responsibility and allow
them to develop their life/work balance.
Nurturing Talent to derive benefit of the demographic dividend

However, India's progress should be examined within the context of its potential. 60% of
India's 1.2 billion people are in the working age group. However, only 10% of the 300 million children
in India between the age of 6 and 16 will pass school and go beyond. Only 5% of India's labor force in
the age group 19-24 years is estimated to have acquired formal training. Despite this, our economy is
clocking an 8.5% growth. Imagine what could be if we could leverage our demographic dividend fully.
397
Reaching our potential however, is not a matter of choice. It is an imperative. Not just for the countries.
Economic benefit, but also because peace and prosperity are natural outcomes when people have jobs,
food on their table and a life of dignity. Not far to the west of India, we are witnessing an entire nation
coming to a grinding halt due to disconnect between education/ skills and employment. Do we want to
see the same happen in India? Like everything else in India, our problems too are king-sized. To
sustain our growth, it is estimated that we need to build a 700 million globally employable workforce
by 2022, comprising 200 million university graduates and 500 million vocationally skilled people. No
country in the world faces such a challenge. We have no precedent. We must devise our own strategies,
be willing to experiment and be bold to try new and innovative solutions. We cannot fix the problem
with the same old set of tools. We need new tools in the form of new technologies or new ways of
approaching the problem.
Talent Mobility:- Talent deployment in organization plays a vital role in the successful
implementation of global expansion strategies. As companies grow across larger geographical areas,
people and jobs are also moving depending on the right cost, the right skills and the right business
environment. This can be made possible only by having effective talent deployment programs
benchmarked against industry best practices that are attractive to employees and are competitive in the
market place. According to the IBM CHRO 2010 study, based on conversations with more than 700
chief human resource officers worldwide, the agility to match employees have first hand experiences of
working in critical talent with strategic opportunities is critical to different parts of the organization
outperforming in today's dynamic and most importantly, instead of planning to move a
hypercompetitive global marketplace.
Drivers for Talent Management:- - Perhaps this is the most important aspect of talent
Management. We in India do not let our children to choose the career they want. Immaterial of the
Childs ability or aptitude every parent wants their ward to become an Engineer or doctor. Their fate is
decided even before they are born. Most of you must be remembering this dialogue of in the movie
Three Idiots. Some of the famous personalities who identified picked nurtured talents were , Imran
Khan in the field of cricket, our late Prime minister Mr. Rajeev Gandhi and perhaps Shri Siva
Subramanian Iyer.Imran Khan the greatest Captain Pakistan ever had, picked up young cricketers like
Wasim Akram, Waqar Younus and Inzamam ul Haq who all went on to become legends and thank
Imran for their success. Late Rajeev Gandhi picked up Sam Pitroda who brought telecom revolution in
India.Mr. Narshima Rao had Dr. Manmohan Singh as his finance minister whose budget of 1991 is
considered as the budget of the century. The greatest of them all being Shri Siva Subramanian Iyer. He
explained to the students of class V as to how do birds fly. One little guy at the end of the class said
that he did not understand, and a few also joined him. The master was not upset, instead he took them
to the sea shore and asked these little boys to observe the flight of birds and explained to them. They
now understood the whole bird dynamics with practical example. The little guy was no one but Dr.
Abdul Kalam for whom it was not merely an understanding of how a bird flies. The bird's flight entered
into his mind and created a feeling on the seashore of Rameswaram. From that day evening, he thought
that his future study has to be with reference to something to do with flight and went on to become one
of the greatest scientists in the world.
CONCLUSION
Each person is unique and cannot be commoditized. Effective talent leaders must have belief
in the ability of the people to be responsible and take ownership. They must spend time understanding
their strength, weakness and what interests them. The role of the leaders is to match these interests with
the Organizational goals. Ensure visibility and recognition of the people. People should be looked as
people and not as resources. In an where India is considered as one of the fastest growing, the whole
country is planning on reaping the benefits of the demographic dividend. It is here where we as
teachers and professors have a major role to play in identifying, grooming, and nurturing talent to
enable India to become the superpower.
398
BIBILIOGRAPHY
1. India needs skill development model by Mr. S Ramadorai, skills advisor to the PM.
2. Talent management magazine www.talentmgt.com June 2011. Skills Advisor to the Prime Minister.
3. Leadership @Infosys by Matt Barney.
4. Receipe for Conflict or for opportunity? By Kenneth W. Moore in the Human factor issue of May
2011.
5.http://www.thehindujobs.com , faqs@cnkonline.com by Salma Akbar.
6.http://www.abdulkalam.com/kalam/jsp/display_content.
7.http://peoplematters.in/articles/cover-story/retain-talent-and-customers-alike.
8.http://peoplematters.in/articles/focus-areas-13/managing-talent/growing-talent-from-within.
9.http://peoplematters.in/articles/focus-areas-13/redefine-the-talent-catchment.
10.http://www.itsmyascent.com/web/itsmyascent/hr-zone.
11.http://www.iipm.edu/iipm-old/talent-management.html.
12.www.humancapitalonline.com.
13.http://www.shrmindia.org/getting-ready-talent-mobility
399
INTERNATIONAL BUSINESS & CHALLENGES OF HR
T.Kumar M.com., M.Phil. & Delcya Nicholas, Assistant Professor, Department of Commerce ,
Kongunadu Arts and Science College, Coimbatore 29
ABSTRACT
As globalization spreads, more foreign firms are entering Indian market and the challenge
before domestic firms is going to be much more severe in the years to come. "What are the key
global pressures affecting human resource management practices in your firm currently and for the
projected future?" Dealing with global staffing pressures like these is quite complex. Cultural
diversity exists on following dimensions individualism and Collectivism, Power Orientation,
Uncertainty A v o i d a n c e e t c . , Liberalization means more freedom to conduct business operations.
Liberalization has brought the following changes in Indian economy. The norms in these human
resource activities vary substantially form one country to other country and the cause of it is
economic, cultural and legal conditions.
Keywords: Globalization, Liberalization, Cultural diversity
INTRODUCTION
How to face competition from MNCs is a worry for Indian firms. As globalization spreads,
more foreign firms are entering Indian market and the challenge before domestic firms is going to be
much more severe in the years to come. Many Indian firms are compelled to think globally,
something which is difficult for managers who were accustomed to operate in vast sheltered
markets with minimal or no competition either from domestic or foreign firms. The Internet is
adding fuel to globalization and most large MNCs are setting up green field projects in India or
entering into joint ventures with local companies.
THE INTERNATIONAL BUSINESS & CHALLENGES OF HR

When researchers asked senior international HR managers in eight large
companies, "What are the key global pressures affecting human resource management practices in
your firm currently and for the projected future?" the three that emerged were:
IMPACT OF INTER COUNTRY DIFFERENCES

Companies operating only within the borders of the United States generally have the
luxury of dealing with a relatively limited set of economic, cultural, and legal variables. The
United States is a capitalist, competitive society. And while the U.S. workforce reflects a
multitude of cultural and ethnic backgrounds, shared values (such as an appreciation for
democracy) help to blur potentially sharp cultural differences. Although the different states and
municipalities certainly have their own laws affecting HR, a basic federal framework helps produce
a fairly predictable set of legal guidelines regarding matters such as employment discrimination,
labor relations, and safety and health.
Cultural Factors
Countries differ widely in their cultures-in other words, in the basic values their citizens
adhere to, and in the ways these values manifest themselves in the nation's arts, social programs,
politics, and ways of doing things.
Cultural differences from country to country necessitatecorresponding differences in

management practices among a company's subsidiaries. For example, in a study of about 330
managers from Hong Kong, the People's Republic of China, and the United States, the U.S.
managers tended to be most concerned with getting the job done. Chinese managers were most
concerned with maintaining a harmonious environment, and Hong Kong managers fell between these
extremes. A classic study by Professor Geert Hofstede identified other international cultural
differences.
400
Economic systems
Differences in economic systems also translate into differences in HR practices. For one
thing, some countries are more wedded to the ideals of free enterprise than are others. For
instance, France-though a capitalist society- recently imposed tight restrictions on employers'
rights to discharge workers, and limited the number of hours an employee could legally work each
week.
Legal and Industrial Relations Factors

Legal as well as industrial relations (the relationships among the worker, the union, and the
employer) factors vary from country to country.
INTERNATIONAL PERSPECTIVES OF HRM

International human resource management (IHRM) involves ascertaining the corporate
strategy of the company and assessing the corresponding human resource needs; determining
the recruitment, staffing and organizational strategy; recruiting, inducting, training and
developing and motivating the personnel; putting in place the performance appraisal and
compensation plans and industrial relations strategy and the effective management of all these.
"The strategic role of HRM is complex enough in a purely domestic firm, but it is more complex in
an international business, where staffing, management development, performance evaluation, and
compensation activities are' complicated by profound differences between countries in labor
markets, culture, legal systems, economic systems, and the like."
.
Workforce Diversity
Workforce is the building block of any organization but there is workforce diversity
in global companies. Based on their place of origin, employees of a typical global company can
be divided into the following groups:
a. Parent-country national permanent resident of the country where the company is headquartered.
b. Host-country national-permanent resident of the country where the operations of the company are
located.
c. Third-country national - permanent resident of a country other than the parent country and the
host country.
Further, workforce diversity can be seen in the context of employee mobility from one country to
another country for performing jobs. On this basis, an employee can be put in one of the following
categories:
a. Expatriate-a parent country national sent on a long-term assignment to the host- country operations.
b. Inpatriate-a host-country national or third-country national assigned to the home country of the
company where it is headquartered.
c. Repatriate-an expatriate coming back to the home country at the end of a foreign assignment.
Workforce diversity implies that various categories of employees not only bring their-skills and
expertise but also their attitudes, motivation to work or not to work, feelings, and other personal
characteristics. Managing such employees with pre- determined HRM practices may not be effective
but contingency approach has to be adopted so that HRM practices become tailor-made.
Language Diversity
Language is a medium of expression but employees coming from different countries
have different languages. Though English is a very common language, it does not serve the purpose
adequately as it does not cover the entire world. While employees coming from different countries
may be encouraged to learn the language of the host country for better dissemination of the
information, it does not become feasible in many cases. An alternative to this is to send
multilingual communications. It implies that anything transmitted to employees should appear in
more than one language to help the message get through. While there are no hard-and-fast rules in
sending such messages, it appears safe to say that such a message should be transmitted in the
languages the employees understand to ensure adequate coverage.
401
Economic Diversity
Economic diversity is expressed in terms of per capita income of different countries
where a global company operates. Economic diversity is directly related to compensation
management that is, paying wages / salaries and other financial compensation to employees located in
different countries. One of the basic principles of paying to employees is that "there should be equity
in paying to employees." However, putting this principle in practice is difficult for a global company
because its operations are located in different countries having different economic status. In such a
situation, some kind of parity should be established based on the cost of living of host countries.
Cultural Differences
Cultural differences cause a great challenge to HRM. The behavioral attitude of workers,
the social environment, values, beliefs, outlooks, etc., are important factors, which affect
industrial relations, loyalty, productivity, etc. There are also significant differences in aspects
related to labour mobility. Cultural factors are very relevant in inter Personal behavior also. In some
countries it is common to address the boss Mr. so and so but in countries like India addressing the
boss by name would not be welcome. In countries like India people attach great value to
designations and hierarchical levels. This makes delaying and organizational restructuring difficult.
CHOICE OF THE INTERNATIONALIZATION STRATEGY

Choice of the strategy does not consist merely of a collection of isolated decisions on
products, markets, channels, partners and operation modes. These decisions are also core issues of
a competitive strategy. Therefore, the choice of a strategy is all about choosing an appropriate
framework for the growth and internationalization strategy for the companys competitive success.
That is, the choice of strategy must be understood within the context of strategic planning. The
strategy of the firm is concerned with matching a firms resources and Capabilities to the
opportunities and challenges arising from the external environment. This could just as easily be
restated as, eThe choice of the growth and internationalization strategy is concerned with
matching a firms resources and capabilities to the opportunities and challenges arising from
the external environment According to the view adopted here:
eThe central task of strategic planning is defining, building, utilizing, maintaining, and developing a
companys basis of success that consists of superior customer benefit and superior competences as
well as of threshold factors
The strategy statement itself consists of the following three components:
1. Business concept or Business model
2. Basis for success
3. Strategic principles and strategic actions
The business concept refers to the types of products the company provides and the types of customers
it serves. In other words, the company selects and defines the competitive arena in which it plans to
operate. Jay Bourgeois has called this edomain definition. Business model includes wider issues such
as choice of the companys position in the industry value chain, outsourcing and cooperation
relationships with other players, and earnings model.
CONCLUSION
An international concern efforts should complement its level of international development
and grow with its international commitments An MNE is always highly dependent and committed to
international operations. Its international human resource needs a more extensive than the
organizations those of a company that merely exports or import a small portion of its output of
supplies. Such companies need is for the persons that are technically trained or
knowledgeable about trade documents, documentation, foreign exchange risk, and
political economic conditions that may affect the trade flows. And MNEs also needs a multinational
workforce and managers who can integrate the Work effectively.
402
As a company moves to other foreign operations, it must consider how to staff, motivate, and
compensate its foreign work force. The norms in these human resource activities vary substantially
form one country to other country and the cause of it is economic, cultural and legal conditions.
403
AN EMPIRICAL RESEARCH ON THE MECHANISM OF
EMPLOYER BRANDING PROCESS
Dr. A. Shameem, Prof & Head, Dept of Management Studies, Tagore Engineering. College, Chennai
R. Maha Prabhu, Asst. Prof., Dept of Management Studies, Tagore Engineering. College, Chennai
ABSTRACT
It is said that brands come to life through an interplay of the efforts of those managing the
brand typically, a firm and stakeholders interacting with the brand which includes customers,
shareholders, distribution channels and employees. It follows that the same can be said of employer
brands which take shape through both the package of functional, economic and psychological benefits
provided and promoted by an employing firm, and through potential and current employees identifying
benefits with the employing firm. Research to date has suggested mechanisms that create, perpetuate
and shape employer brands from the perspective of both the firm and employee. Empirical
investigations of the operation of specific mechanisms, such as organisational attractiveness and brand
positioning, has followed, typically from the perspective of either the firm or the individual which
could be a potential or current employee. This has brought to light only a few narrow aspects of the
employer branding process, leading to an incomplete picture. To address this gap the researchers have
undertaken a qualitative investigation similar to one undertaken by Lara Moroko, and Mark D. Uncles.
The study has been conducted across a range of six Indian sectors - IT, Pharmaceutical, Manufacturing,
Logistics, Banking and Insurance to understand their employer branding processes. The resulting
analysis is both interesting and through provoking. To gather complete data on firm level as well as
individual level mechanisms, the researchers have included two groups of respondents from each firm,
one which directly deals with day-to-day management of the employer branding process and other
which deals with the employee relations. The study has identified a number of inter-related
mechanisms that create and perpetuate the employer brand at the firm and individual level.
Keywords: Employer branding; Employer brand; employer branding process, firm level, individual
level
INTRODUCTION
It is said that brands come to life through an interplay of the efforts of those managing the
brand (typically, a firm) and stakeholders interacting with the brand (customers, shareholders,
distribution channels and employees) (Hatch and Shultz, 2009; Krreman and Rylander, 2009; Holt,
2002). It follows that the same can be said of employer brands, i.e. they take shape through both the
package of functional, economic and psychological benefits provided and promoted by an employing
firm, and through potential and current employees identifying benefits with the employing firm
(Ambler and Barrow, 1996).
Employer branding is an emerging discipline with its roots in classical marketing and brand
management principles. It aims to position an image of a company as a great place to work. The idea
is first to develop an emotional link with the best talent, and then offer prospective candidates tangible
benefits based on evidence. The promise and fulfillment of an employer brand enables the attraction,
motivation and retention of appropriate talent for the business to continue delivering on the corporate
brand promise.
Minchington (2005) defines employer brand as the image of your organization as a great
place to work in the mind of current employees and key stakeholders in the external market (active
and passive candidates, clients, customers and other key stakeholders).
Employer branding is therefore concerned with the attraction, engagement and retention
initiatives targeted at enhancing a companys employer brand. Strong employer brands have
404
an employee value proposition (EVP) which is communicated in company actions and behaviours
and evoke both emotive (e.g. I feel good about working here) and rational benefits (this organisation
cares about my career development) for current and prospective employees. These EVPs reflect the
image the organisation wants to portray to its target audience. A companys employer brand is reflected
in the actions and behaviours of leaders and is affected by company policies, procedures, and practices.
RESEARCH QUESTION
Establishing the scope of mechanisms that underpin the employer branding process leads
usvto the following research question: What are the mechanisms at the firm and individual level that
shape and perpetuate the employer branding process in practice?
METHODOLOGY
The researchers have undertaken a qualitative investigation of six firms across a range of
industries to understand their employer branding processes. The resulting analysis is both broad and
deep, giving insight into the process from the perspectives of the employer brand as managed by the
firm through human resources, marketing, internal communications and executive management and
from the perspective of the individuals targeted by and co-creating the employer brand (i.e., employees
of the respective firms). It is posit that there are a number of inter-related mechanisms that create and
perpetuate the employer brand at the firm and individual level.
Care was taken to select firms from a diverse set of industries, but to keep other extraneous
factors such as firm size and location constant. The study has been conducted across a range of six
Indian sectors - IT, Pharmaceutical, Manufacturing, Logistics, Banking and Insurance to understand
their employer branding processes The fieldwork took place over a month, with data being collected at
all six firms across this extended period.
The empirical material on which the analysis is based consists primarily of information
collected by conducting interviews with a schedule containing about 40 questions. The interviews were
semi-structured in nature, but to give some structure an interview guide for each of the groups was
formulated. These guides contained topics and questions designed to gain an understanding of the
presence and operation of the process mechanisms identified in the employer branding literature.
FINDINGS
From the within-case analysis it is possible to establish whether the full scope of mechanisms
proposed, normatively, in the employer branding literature are operating in the employer branding
processes of the six firms. Table 1 shows the presence (tick) or absence (cross) of each mechanism for
all six firms. Supporting the scope of mechanisms proposed in the literature, the presence of each
mechanism is evident for at least one of the firms in the sample. However, there is clearly variation in
the presence of mechanisms at both the firm and individual levels.
By systematically comparing the presence and operation of mechanisms across the six firms, it
was possible to establish a meaningful, subtle and surprising ways in which the more successful
employer branding processes (the IT, Pharmaceutical, Manufacturing) differed from the less successful
processes (the Logistics, Banking and Insurance).
Firstly, the study was able to establish common themes across the mechanisms: the role of
leadership and line management; the firms values; messages relating to the employment experience (in
terms of consistency, source and accuracy/credibility); and employee trust of the organisation. These
themes can be seen as the critical touch-points of the employer brand from the firm and employees
perspectives.
405
Secondly, the research determined that mechanisms did not positively contribute to the
process by virtue of their mere presence. Internal marketing, for example, was present at all six firms,
but was only viewed positively by respondents at the IT and Pharmaceuticals firms, had mixed
evaluations at the Manufacturing and Logistics and was viewed negatively at the Banking and
Insurance firms.
Thirdly, it was found that the full range of mechanisms was only evident at the IT and
Pharma, which embodied the characteristics of a successful employer brand more closely than all other
firms in the sample.
Table 1. Presence or absence of the proposed mechanisms across the firms

as evident in the data.
Manufact-
Insurance
Logistics
Banking
Pharma
uring
Process
Mechanisms
IT
level
Firm Cross functional f f x x x X

knowledge sharing
Firm Cultural management f f f f f f
Firm Image management f f f f f x
Firm Employee attraction f f f f f x
Firm Employee retention f f f f x f
Firm Internal marketing f f f f
Firm Brand management f f f f x x
& differentiation
Individual Psychological f f f f f f
contracts
Individual Employer Brand f f f f x
attraction
Individual Brand meaning f f f f f f
Individual Brand loyalty f f x x f f
Individual Employee f f f f x f
organisation fit
Individual Organisational f f f f f x
citizenship
Interaction between the Mechanisms

The findings indicate that the process exists as a result of the interaction between mechanisms
at each level and across the individual/firm levels. For example, cultural management through the
promotion of differentiated values (internally and externally) impacted on employee attraction at the
Manufacturing and Logistics firms. For employees of the Banking and Insurance, the psychological
contract of the employees was fulfilled, despite disruptions to leadership and company structure, due to
the consistency of the culture (and employment experience) brought about by the continuity of senior
management. At the Logistics firm, promotion of the external image of the brand led to pride and
employer brand/brand loyalty. However, the positive effects of this were tempered by the lack of
internal communications, leaving the expected employment experience (and psychological contracts)
unfulfilled. By comparison, cultural and image/identity management at the IT and Pharmaceuticals
firms worked to attract employees, particularly those who had a good employee/organisation fit with
the consultative, inclusive and thorough culture of the firm. This, in turn, assisted the retention of
employees, who responded positively to the culture.
406
CONCLUSION
Various mechanisms have been suggested previously, mainly based on normative principles.
The contribution of this paper is make an empirical study in which these mechanisms are validated.
Furthermore, from the case data presented and the ensuing analysis it is evident that the employer
branding process is inherently multidisciplinary in nature. By its nature the process encompasses
functional and theoretical roots in marketing, human resources, organisational management and
strategy. It is, in fact, a much broader, deeper and more strategic process than often claimed. There are
also substantive practical implications. For instance, if a firm cannot support the mechanisms
underpinning the employer brand then it is likely that pursuing an employer branding program,
however well intentioned, will not prove successful. At best, the firm may increase awareness among
prospective employees as an employer and may even increase the ease with which they recruit
employees. However, in the absence of a compelling and deliverable employee value proposition,
potential long term strategic benefits are unlikely to accrue. Similarly, activities that pass for an
employer branding strategy, such as simply refreshing a firms recruitment advertising or updating a
career website are unlikely to deliver meaningful employer branding.
The importance of sector and industry mechanisms has been briefly explored in this research.
Unaddressed issues in the employer branding process could provide valuable insight into the scope of
sources influencing the employees psychological contracts and thus the firms ability to construct and
promote a compelling job product. This super-macro-level mechanism view, building on the
individual (micro) and firm (macro) level mechanisms would also raise the potential for researching
employer branding at a more advanced level
REFERENCES
1. Ambler, T., Barrow, S., 1996. The employer brand. Journal of Brand Management 4 (3), 185-
206.
2. Backhaus, K., Tikoo, S., 2004. Conceptualizing and Researching Employer Branding. Career
Development International 9(4/5), 501-517.
3. Backhaus, K., 2004. An Exploration of Corporate Recruitment Descriptions on Monster.com.
The Journal of Business Communication 41 (2), 115-120.
4. Berthon, P., Ewing, M., Hah, L. L., 2005. Captivating company: dimensions of attractiveness
in employer branding. International Journal of Advertising 24 (2), 151-172
5. Davies, G., 2008. Employer Branding and its Influence on Managers. European Journal of
Marketing 42 ( 5/6), 667-681
6. Ewing, M.J., Pitt, L.F., de Bussy, N.M., Berthon, P., 2002. Employment Branding in the
Knowledge Economy. International Journal of Advertising 21 (1), 3-22.
7. Hatch, M., Schultz, M., 2009. Of Bricks and Brands: From Corporate to Enterprise Branding.
Organizational Dynamics 38(2), 117-130
8. Holt, D., 2002 Why Do Brands Cause Trouble? A Dialectical Theory of Consumer Culture
and Branding. Journal of Consumer Research 29 (1), 70-90.
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RECRUITING AND HIRING
Ms. R. Priya Rathna (Faculty), Ms. S. Sowmyanarayani & Ms. K. Sushma (Student),
RECRUITING
Recruitment refers to the process of attracting, screening, and selecting qualified people for a
job. For some components of the recruitment process, mid- and large-size organizations often retain
professional recruiters or outsource some of the process to recruitment agencies.
Recruitment process
Recruitment is the process of selecting the people at a right position for the right job.
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
Difference between recruiting and hiring

1. Recruitment is all activities aimed at
a) Defining the needs of the organization
b) Maximizing the organizations potential of attracting suitable candidates and
c) The process leading up to the hiring decision (specifically selection and interviewing.
Hiring starts with a formal hiring decision and goes on until the person starts work, including
introduction program/training. In hiring you have: hiring decision, contract preparation (not
negotiation, that is recruitment), internal preparations for the employee to begin working, fulfillment of
formal requirements, introduction and starting the company.
Another distinction is that hiring can never be outsourced (unless the person is outsourced
directly, of course).
Recruitment is the initial execution phase of HR process as per the company's recruitment
strategy. Recruitment is way of attracting the talents / job seekers according to the need of the company
/ clients. Methods: Job portals, references, headhunting, networking, advertisements, job fair, employee
referrals etc.
Out of shortlisted candidates through various selection process, the company will do "Hiring"
the candidate once he passes the all selection procedures.
The specific activities when you look in Hiring is Salary negotiation, specifying the exact
roles and responsibilities, finalizing whether it is temporary or permanent position, fixing up the
joining date. Etc. Motivated and energetic employees
Students are young, dynamic and mobile with few family ties. Eager to learn and get their
hands dirty with different projects, you can introduce them to various tasks and they can assist with
various aspects of the business. The students are enthusiastic to implement their education and develop
their skills in a real business context.
408
DISADVANTAGES
1. There may be a reverse flow of business intelligence to the hired employees previous company/
colleagues
2. If the person is that easy to poach from direct competition, then some other company / competitor
can easily poach him too
DISADVANTAGES FOR THE HIRING COMPANY
One of the biggest disadvantages for the hiring company is the cost of using a professional
recruiter. The typical fee for a successful placement runs anywhere from 20% to 30% or more of the
new hire's first year salary. And if the recruiter is hired on a retained basis, the fee is generally paid
regardless of whether anybody is actually hired for the position or not.
For many companies, the time it takes to evaluate and select a suitable recruitment firm is a
disadvantage. If only one or two positions need to be filled and qualified candidates are easy to find, it
is often more cost effective to do the hiring process internally instead of going to an outside recruiter.
The cost vs. benefit will vary from company to company, so it is important to consider all options
before committing to a professional recruiter.
Double-digit salary increases and positive hiring activity will continue in the Indian economy
during the second half of the year, in spite of the uncertain global economic environment and soaring
inflation, according to a survey.
The survey conducted by recruitment tendering platform, MyHiringClub.com said that job-
seekers will have more opportunities in the second half of FY'12 compared to the first half, with 82 of
the employers and recruiters surveyed anticipating an increase in hiring activity.
Only 6 per cent of the respondents expected no change in recruitment activity.
"Hiring remain positive even as the world is facing a crisis in the US and eurozone. These
crises are going to give only short-term impact on hiring, with certain sectors only. Here, we had seen
in study 82 per cent anticipating robust hiring in second half of FY'12.
"Also good news for job seekers, along with new opportunities - they are going to be benefited
by a handsome increment and better salary," MyHiringClub.com CEO Rajesh Kumar said. When it
comes to a salary hike for existing employees, 36 per cent of the respondents said they will be able to
give a 15 per cent to 20 per cent increment, while another 24 per cent of the employers surveyed said
they would give a 10-15 per cent increment.
Another 12 per cent of the respondents said salaries would rise by five per cent to 10 per cent,
while six per cent of the employers surveyed did not comment on the issue. Furthermore, for job
seekers, there would be a 12 per cent rise in pay scales vis-a-vis existing levels. The survey said 69 per
cent of the respondents indicated the maximum hiring will be witnessed at the mid-level for employees
having experience of 4-9 years. Another 38 per cent said the maximum hiring will be at lower levels,
with employees having between 1-4 years of experience. Only 18 per cent predicted that the maximum
hiring would take place at the senior level, with 9-15 years of experience.
The survey was conducted among senior HR personnel and the top management of 296
employers and 793 recruitment consultants across 10 industry segments (healthcare, infrastructure,
hospitality, real estate and construction, BFSI, IT and ITeS, training and consulting, FMCG, telecom
and automobile), spread across eight Indian cities.
409
T.Bakkia Rani, II MBA & P.Asha, II MBA, Michael Institute of Management, Madurai.
ABSTRACT
The present study has made to determine the dynamics of performance and compensation
management. The performance and compensation management are the challenges to the human
resource managers because to motivate the employees to increase the performance and to retain talent
employees in the organization. The human resource department has to consider on performance and
compensation management system.
Performance management is an ongoing, continuous process of communicating and clarifying

job responsibilities, priorities and performance expectations in order to ensure mutual understanding
between supervisor and employee. Performance management is the systematic process by which an
agency involves its employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals.
Employee performance management includes:
planning work and setting expectations,
continually monitoring performance,
developing the capacity to perform,
periodically rating performance in a summary fashion, and
Rewarding good performance.
Compensation is the remuneration received by an employee in return for his/her contribution

to the organization. It is an organized practice that involves balancing the work-employee relation by
providing monetary and non-monetary benefits to employees. Compensation provided to employees
can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known
as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards
and allowances provided to the employees in return for their services. The lucrative compensation will
also serve the need for attracting and retaining the best employees.
To conclude, performance management can be regarded as a proactive system of managing

employee performance for driving the individuals and the organizations towards desired performance
and results. If compensation offered is effectively managed, it contributes to high organizational
productivity.
Paper presented at National Conference on Emerging trends in Global Business at RVS Institute of
Management Studies, Coimbatore on 10th Sep 2011.
INTRODUCTION
A performance-based pay system is a common method used by organizations to increase
productivity. As companies try to remain competitive and control costs, performance-based pay
systems are becoming increasingly popular. We will define performance-based compensation and show
how companies are using this type of pay plan. Performance pay attempts to link compensation to
performance. Reasons to utilize a performance-based system are to retain top performers, to align labor
costs with productivity, and to reinforce company objectives.
DEFINITION
According to Flippo performance management is the systematic, periodic and an impartial

rating of an employee excellence in matters pertaining to his present job and his potential for a better
job
410
Meaning
Performance management is the systematic process by which an agency involves its
employees, as individuals and members of a group, in improving organizational effectiveness in the
accomplishment of agency mission and goals.
Objectives
The objectives of Performance Management are to:
1. Increase two-way communication between supervisors and employees
2. Clarify mission, goals, responsibilities, priorities and expectations
3. Identify and resolve performance problems
4. Recognize quality performance
5. Provide a basis for administrative decisions such as promotions, succession and strategic
planning, and pay for performance.
Employee performance management includes:

planning work and setting expectations,
continually monitoring performance,
developing the capacity to perform,
periodically rating performance in a summary fashion, and
Rewarding good performance
Compensation Management
Definition
According to Flippo Compensation includes direct cash payment, indirect payments in the
form of employees benefits and incentives to motivate employees to strive for higher levels of
productivity
Meaning
Compensation is the remuneration received by an employee in return for his/her contribution
to the organization. It is an organized practice that involves balancing the work-employee relation by
providing monetary and non-monetary benefits to employees.
Need for Compensation Management

A good compensation package is important to motivate the employees to increase the
organizational productivity.
Thus, compensation helps in running an organization effectively and accomplishing its goals.
Salary is just a part of the compensation system; the employees have other psychological and
self-actualization needs to fulfill. Thus, compensation serves the purpose.
The most competitive compensation will help the organization to attract and sustain the best
talent. The compensation package should be as per industry standards.
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the
employees that are aligned with the business goals and objectives. In todays competitive scenario,
organizations have to take special measures regarding compensation of the employees so that the
organizations retain the valuable employees. The compensation systems have changed from traditional
ones to strategic compensation systems. Compensation is an integral part of human resource
management which helps in motivating the employees and improving organizational effectiveness.
Direct Compensation
Direct compensation refers to monetary benefits offered and provided to employees in return
for the services they provide to the organization. The monetary benefits include basic salary, house rent
411
allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus,
Pf/Gratuity, etc. They are given at a regular interval at a definite time.
BasicSalary
CONCLUSION
Compensation is crucial to retaining employees, keeping morale high, and enforcing a

performance-based, goal-oriented culture. Having a Compensation Management solution can be a key
component of your talent development strategy. By integrating compensation with performance
management processes, organizations can ensure that employee increases are fair and equitable.
REFERENCES
P.Subba Rao , Personnel and Human Resource Management , Himalaya publishing house ,
fourth edition , Pg.No.222-223
Gary Dessler , Biju Varkkey , Human Resource Management , Pearson , Eleventh edition,
Pg.no.425-426
B.D.Singh , Compensation and Reward Management , Excel Books Publication, 1st edition,
Pp.117-118
Dinesh K Srivasatava, Strategies for Performance Management, Excel Books Publication, 1st
edition , pp.142-143
www.shrmindia.org
www.blogs.payscale.com
www.user.txcyber.com
412
EMERGING TRENDS IN GLOBAL BUSINESS-NEW ROLE OF WOMEN IN
MANAGEMENT
Ms.A.J. Freni ,A.P, Department of Management Studies, Tagore Engineering Collge, Chennai-44
INTRODUCTION
The past several decades have brought enormous changes that have in turn shaped the
development of the modern business environment. Today, India is a force in the global economy, with
a high demand for talent. A key source of talent is educated Indian women. While Indian corporations
have not yet fully recognized or utilized this talent pool, the growing gender diversity in Indian
managerial ranks now offers a pathway for change for Indian women. Cultural and societal change
means a shift away from traditional views, stereotypes and societal attitudes, with increasing
opportunities for Indian women in management. While change is slow for Indian women to gain
executive positions, they have made progress in management in a relatively short time. According to
existing theories, men and women do communicate differently, which in turn has effect on their values
and their preferred styles of management (Robbins, 2003). For instance, men most often focus on
achieving results above all, while women care mostly about feelings and relationships. These
preferences exist both in their personal lives as well as their professional undertakings. In fact, female
preferences affect their selected style of management to a greater degree than that of males. And while
not all women prefer sharing of responsibility, cooperation, empowerment, and delegation, many do
promote their application as managers and highly-ranked executives (Tomkiewicz and Bass, 2003).The
overall employment situation of women has not evolved significantly since 2001.
The ILOs Global Employment Trends (2003) reported that women continue to have lower
labor market participation rates, higher unemployment rates and significant pay differences compared
to men. Women represent over 40 per cent of the global labor force, approximately 70 per cent of
women in developed countries and 60 per cent in developing countries. There has also been little
change in their share of professional jobs in the last few years. However, women continue to make
small inroads into non-traditional fields such as law, information and communication technology (ICT)
and computer science, and engineering, and there is evidence that employers are beginning to promote
women more systematically and to introduce family-friendly policies in order to retain them. However,
women who choose non-traditional jobs can face special constraints in the workplace, not least of
which are isolation, limited access to mentoring and female role models, and sexual harassment The
aim of this study is to analyze some of the institutional and attitudinal prejudices that continue to
hamper womens progress into professional and management jobs and the development of further
strategies to help greater numbers of women progress into senior and board-level positions.
Strengths of Indian Women as Managers
g Ability to network with colleagues
g Ability to perceive and understand situations
gStrong sense of dedication, loyalty and commitment to their organizations
g Ability to multitask
gCollaborative work style, solicit input from others, with respect for ideas
g Crisis management skills
gWillingness to share information (interactive leadership style)
g Sensitivity in relationships (e.g., compassionate, empathetic, understanding)
g Behaving in a gender-neutral manner
The reasons that hamper the progress:
Lack of management or line experience.

Lack of mentoring and role models for women at the highest levels.
Exclusion from informal networks and channels of communication where important
information on organizational politics and decision making is shared.
Stereotyping and preconceptions of womens roles and abilities, commitment
413
and leadership style.
Lack of flexibility in work schedules.
Lack of career and succession planning.
Counterproductive behavior of male co-workers including taking credit for womens
contributions.
Sexual harassment.
Attributing womens successes to tokenism.
Women who compete like men are considered unfeminine.
Women who emphasize family are considered uncommitted.
Analysis of various Factors

Encouraging women who hold senior management positions to move into board-level
positions is viewed as a crucial part of the global drive to improve equality between men and women.
In some cases there may be an element of choice some women may simply decide not to progress to
board level despite being coached for and offered such positions There is likely to be a range of reasons
why women in senior jobs fail to progress up to board level.
Networks
Formal and informal networks can help men gain influence and access to high-ranking
positions. Women find it difficult to break into male networks and there are few womens networks.
Furthermore, the scarcity of women in senior positions means that any networks which are formed are
unlikely to be as effective as those of men. It would be more useful to help women develop the skills
that would allow them to break into male networks.
Family-friendly policies including flexible working hours, parental leave for men and women,
child care facilities, etc.should be important elements in any integrated package of measures
supporting women at work.
Ensuring that anti-discrimination legislation is enforced at the workplace so that women have
equal access to jobs
Implementing no-nonsense sexual harassment policies whilst providing education about
sexual harassment to create a climate of respect in the workplace
Providing forums for women to address issues affecting them in non traditional jobs
More decisive measures are needed to harmonize remuneration structures for both male and
female employees
Making wage systems more transparent and employees eligibility for different components of
remuneration more specific
Ensuring that all employees conditions and benefits are equal and giving part-time workers
the same entitlements, conditions and benefits as full-time workers on a pro-rata basis
Subjecting wages to review procedures, and regularly monitoring and evaluating pay system
Eliminating sex-stereotyped images of women and men and sexist language from school
curricula teaching materials and teaching methods so that womens equal participation in all
areas of society is instilled into childrens consciousness from an early age
Sensitization programmes for teachers, focusing on removing discriminatory practices and
attitudes from teaching and vocational guidance, and awareness raising campaigns among
students families and friends, and among the community at large.
Programmes are needed to improve their presence in the academic hierarchy, particularly in
non-traditional subject areas. These programmes could take the form of affirmative action or
quota systems to promote women teachers from within schools and universities, nominate
them to selection committees, and provide them with high-profile professorial chairs.
The provision of on-campus child care facilities would not only give teachers the work
flexibility they need but may also increase tertiary level enrolment of women with young
children.
414
More women may be persuaded to enroll in scientific and technological fields if promotional
materials on university courses in non-traditional subjects specifically targeted female
students.
Lastly, in order to overcome the general discriminatory view of women with non-
conventional qualifications, programmes need to be developed to help employers recognize
the capabilities of women and the benefits they can bring to their businesses.
Senior management commitment to gender issues
Career development programs for women
Exposure of women to top management
Leadership development programs for women
Job rotation for women
Recruitment of women at senior-level positions
Regular survey of women to assess job satisfaction
Mentoring programs for women
Women-Friendly Organization
CONCLUSION
The lack of women on the top positions in the companies can be analyzed from different
perspectives. Public Institutions believe that to reach a balanced presence is a political objective to get
the equality of opportunities among men and women. Nevertheless, the efforts that Public Institutions
are doing are not present in the enterprises. Gender diversity is a reality need and to get it, social
structural changes are necessary. Companies begin to recognize that there are female values and they
can be profitable to improve their objectives. Nevertheless, structural changes to eliminate the barriers
to promote women are limited. Business structures continue using andocentric biases that oblige
women assimilate to dominant male models as neutral or leave their professional carriers. It is
necessary that companies recognize the corporate social responsibility as a strategic act. Promoting
women on the top management is a social equity issue Increasing the number of women on the top
management should be a strategic objective even this presence do not increase the financial
performance. Perhaps, companies who do not promote women should prove women on top
management provoke negative performances to justify their discriminatory acts.
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AN EMPIRICAL INVESTIGATION TO ASSESS TALENT MANAGEMENT
INITIATIVES OF IT FIRMS IN CHENNAI CITY
S. Swathi, Lecturer, Department of Management Studies, Tagore Engineering College, Chennai.
ABSTRACT
Of late it is accepted by all that it takes talent to spot talent. While there is no magic formula
to manage talent, the trick is to locate it and encourage it. A rightly managed talent turns out to be a
gold mine. It is inexhaustible and priceless. If properly utilised, it will keep supplying wealth and value
to the organisation. In turn, management needs to realise its worth, extract it, polish it and utilise it as
this would benefit to both the organisation and the employees. Talent management refers to the skills
of attracting highly skilled workers, of integrating new workers, and developing and retaining current
workers to meet current and future business objectives. Today HR Professionals are confronted with
many new challenges and the most crucial one is that of talent management. Talent management
requires HR to find the right person for the right job by analysing his or her liking, inclination and
temperament. This is not an easy task. Thus a conscious, deliberate, systematic and meticulous
approach is required to acquiring, motivating and retaining talent. This paper is based on an empirical
study conducted by the researcher over 20 IT firms operating in Chennai City. It tries to elicit
information on the various aspects of talent management process and strategies. Some of the issues
addressed are whether the HR Department is geared to take up this new challenging role, extent to
which talent management is supported by technology and software, integration of HR strategy with
overall corporate strategy, extent to which talent acquired helps organisation to grow and retain market
share, loss of talent to competitors, effectiveness of the competency based recruitment practices
adopted, career development initiatives and role of compensation in attracting and retaining talent.
Keywords : Talent management, technology, integration of HR strategy with overall strategy,
competency based recruitment practices, compensation.
INTRODUCTION
can recognize the worth of a diamond can value it, for others it's just a stone! Talent is doing easily
In an organization, there is nothing more crucial than fitting the right employee in the right
behavior will become typical till the employee is shown the door.
It is difficult to identify the precise meaning of talent management because of the confusion
regarding definitions and terms and the many assumptions made by authors who write about Talent
Management. The terms talent management, talent strategy, succession management, and
human resource planning are often used interchangeably.
Talent management is ensuring the right person in the right job at the right time (Jackson &
Schuler, 1990).Talent management is a deliberate and systematic effort by an organization to ensure
leadership continuity in key positions and encourage individual advancement.(Rothwell, 1994).Talent
management is managing the supply, demand, and flow of talent through the human capital engine.
(Pascal, 2004)
416
According to Creelman, (2004) talent managemen is a mindset and ; a key component to
effective succession planning (Cheloha & Swain, 2005); an attempt to ensure that everyone at all
levels works to the top of their potential (Redford, 2005,).
Several authors fail to define the term (Frank & Taylor, 2004; Vicere, 2005; Six ways you
can help your CEO, 2005) or admit, There isn't a single consistent or concise definition (Ashton
& Morton, 2005).
Talent management is a collection of typical human resource department practices, functions,

activities or specialist areas such as recruiting, selection, development, and career and succession
management (Byham, 2001; Chowanec & Newstrom, 1991; Heinen & O'Neill, 2004; Hilton, 2000;
Mercer, 2005; Olsen, 2000). A company's traditional department-oriented staffing and recruiting
process needs to be converted to an enterprise wide human talent attraction and retention effort.
(Olsen, 2000).
Recruiters have a tendency to discuss talent management in terms of sourcing the best
candidates possible (How a talent management plan, 2004; Sullivan, 2005),
Training and development advocates encourage growing talent through the use of
training/leader development programs (Cohn, Khurana, & Reeves, 2005), Compensation experts tend
to emphasize the use of compensation and performance management processes (Garger, 1999).
RESEARCH QUESTION
This article strives to make an empirical investigation to assess talent management initiatives
of IT firms in Chennai City. This study assesses the effectiveness of talent management initiatives of
20 IT firms as and tries to identify various challenges faced by them.
METHODOLOGY
For the purpose of collecting primary data a questionnaire was developed. The respondents
for this study included 50 HR Professionals employed with the 20 IT firms and who were directly
involved in the talent management process. The questionnaire included items about the full range of
reward practices Secondary data for the study was collected from various journals and research papers.
ANALYSIS
On the question of whether the organisation has any specific talent management initiatives in
place, the response was as follows:
Table 1
Aspects which need to improve in terms of talent management initiatives
S.
Aspect that need to improve %
No.
1 Aligning employees with the mission and vision of organisation 46%
2 Assessing candidates skills earlier in the hiring process 68%
3 Creating culture that makes employees want to stay with the organisation 56%
4 Creating culture that makes individuals want to join the organisation 52%
5 Creating cultrate that values employees work 44%
6 Creating environment when employees are excited to come to work each day 48%
7 Creating an environment where employees ideas are listened to and valued 57%
8 Creating policies that encourage career growth and development opportunities 64%
9 Identifying gaps in current employees and candidates competency levels 61%
417
Table 2
Authority responsible for Talent Management
Mention
No Dept. HR Internal (excludes Outside
Aspect Others
one Head Staff Coach employee Consultant
supervisor)
Recruitment 0% 30% 48% 5% 11% 2% 4%
Career Development 3% 20% 37% 13% 15% 6% 6%
Retention 2% 43% 44% 3% 4% 1% 3%
Table 3
Elements of compensation (in order of importance) which will affect attraction and retention of
top performers in the near future
1 5
Aspects of compensation (most 2 3 4 (least
effective) effective)
Base pay 67% 20% 13% 0% 0%
Health care benefits 49% 24% 15% 8% 4%
Retirement/education benefits 44% 26% 16% 12% 2%
Share options/equity participation 23% 17% 26% 18% 16%
Child care costs/arrangements 32% 28% 20% 15% 5%
Job security 58% 20% 18% 4% 0%
Figure 2
Talent development initiatives carried out
Figure 3
Ways Used to Identify Talent
418
Figure 4
Availability of Staff exclusively for Talent Management Indicatives
Figure 5
Best Source for Talent Management
Outcomes of Talent Management initiatives
FINDINGS
Most IT firms are having specific talent management initiatives (57%) and give consider it to
be a top priority.
68% feel that assessing candidates skills earlier in the hiring process is one important aspect
that needs improvement. 64% feel that creating policies that encourage career growth and
development opportunities and 61% feel identifying gaps in current employees and
candidates competency levels are areas on which HR should focus in order to improve talent
management.
419
Base pay (67%) and job security (58%) will be two aspects considered important for retention
of talent in the coming years. Healthcare benefits (48%) and retirement benefits (44%) will
also play a significant role in retaining talent.
Companies give more weighage to identifying talent by results (41% as compared to
competencies (39%).
61% of the respondents say that they have a separate staff in the level of a management
executive whose sole responsibility is to oversee talent management initiatives.
Retaining the current potential (43%) as compared to leveraging existing talent (37%) is top
priority of the companies.
Classroom workshops (34%), coaching (20/%) and short term assignments (18%) are usually
used by the companies to carry out talent developmental activities.
In most firms HR staff is responsible for recruitment and development of employees.
Department head and HR staff both play a major role in retaining talent.
67% say that talent management is supported by technology and software.
55% say there is integration of HR strategy with overall corporate strategy.
58% feel that t Talent acquired helps organisation to grow and retain market share.
RECOMMENDATIONS
HR professionals should identify the organisational and cultural issues which influence talent
management. HR should also measure work performance against hire cost per hire and time per hire.
HR should pay ample attention to career development and organize management development
programmes leading to talent retention.
CONCLUSION
This paper is a small attempt at eliciting information on the various aspects of talent
management process and strategies. Some of the issues addressed are whether the HR Department is
geared to take up this new challenging role, extent to which talent management is supported by
technology and software, integration of HR strategy with overall corporate strategy, extent to which
talent acquired helps organisation to grow and retain market share, loss of talent to competitors,
effectiveness of the competency based recruitment practices adopted, career development initiatives
and role of compensation in attracting and retaining talent.
REFERENCES
1. Ashton, C., & Morton, L. (2005). Managing talent for competitive advantage. Strategic HR
Review, 4(5), 28h31.
2. Byham, W. C. (2001). Are leaders born or made? Workspan, 44(12), 56h60.
3. Cheloha, R., & Swain, J. (2005). Talent management system key to effective succession
planning. Canadian HR Reporter, 18(17), 5h7.
4. Chowanec, G. D., & Newstrom, C. N. (1991). The strategic management of international
human resources. Business Quarterly, 56(2), 65h70.
5. Cohn, J. M., Khurana, R., & Reeves, L. (2005). Growing talent as if your business depended
on it. Harvard Business Review, 83(10), 63h70.
6. Conger, J. A., & Fulmer, R. M. (2003). Developing your leadership pipeline. Harvard
Business Review, 81(12), 76h84.
7. Creelman, D. (2004, September). Return on investment in talent management: Measures you
can put to work right now. Available from Human
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EMPLOYER BRANDING TO ATTRACT AND RETAIN TALENTED EMPLOYEES
P. Suvitha, Assistant Professor, Guruvayurappan Institute of Management, Coimbatore Palakkad
Highway, Navakkarai Post, Coimbatore 641 105
ABSTRACT
In todays business environment there is an increasing recognition that human resources are a
valuable asset to distinguish a company from its competitors. This tendency, in combination with
increasing job mobility among employees and an ongoing demographic change, has turned the labour
market into a competitive arena. Globalization, increasing job migration, the brain drain, aging
population and demand for more flexible working arrangements have resulted in a talent crunch which
has pushed employer branding to the top of the leadership agenda. It has become a critical driver in
attracting, engaging and retaining talent increase productivity and ultimately the financial success of
any organization.
In the present competitive business environment, skills and talent shortages require new
staffing and retention strategies. One such strategy is the increased organizational focus on employer
branding. For better recognition and economic gain in the marketplace, organizations develop a
distinctive brand. While the purpose of an employer brand is multi-faceted, HR professionals
increasingly use the employer brand to attract, recruit and retain talent.
Employer branding represents a firms efforts to promote, both within and outside the firm, a
clear view of what makes it different and desirable as an employer. In recent years employer branding
has gained popularity among practicing managers. Given this managerial interest, this article presents a
framework to initiate the study of employer branding. This article discusses the relationship between
employer branding and talent management. Employer branding and talent management are two fairly
new concepts in the area of Human Resource Management, which has the aim to differentiate
companies on the labour market and to support them effectively in their endeavor to approach, acquire
and retain the most talented employees.
Keywords: Employer branding, Talent, Talent Management, Attract and Retain.
INTRODUCTION
In todays competitive business environment, skills and talent shortages require new staffing
and retention strategies. One of the strategies to gain the talent employee is the employer branding. In
the present job markets, where companies compete for attracting the best of the talent, employer brand,
becomes more relevant when compared to various critical factors like job profile and the compensation
package. For better recognition and economic gain in the marketplace, organizations develop a
distinctive brand. While the purpose of an employer brand is multi-faceted, HR professionals
increasingly use the employer brand to attract, recruit and retain talent.
EMPLOYER BRANDING
The employer brand can be defined as the image of the organization as a great place to work
in the minds of current employees and key stakeholders in the external market (active and passive
candidates, clients, customers and other key stakeholders). The employer brand captures the essence of
a company in a way that engages employees and stakeholders.
Employer branding is defined as a targeted long-term strategy to manage awareness and

perceptions of employees, potential employees and related stakeholders with regards to a particular
firm (Sullivian, 2004). This includes direct and indirect experiences of dealing with the firm. Like
actual product branding, organizations have started to invest employer branding as employees are the
internal customers of the firm. The employer brand builds an image confirming the organization as a
good place to work. Today, an effective employer brand is essential for competitive advantage.
421
Employer branding is the process to communicate an organization's culture as an employer in the

marketplace. An employer brand is the sum of all the characteristics and distinguishable features that
prospective candidates and current employees perceive about an organizations employment
experience. The employment experience serves as the foundation of the employer brand and includes
tangible features such as salary, rewards and benefits, but also extends to intangibles such as an
organizations culture, values, management style and opportunities for employee learning, development
and recognition (Newell & Dopson, 1996; Hendry & Jenkins, 1997).
At its most effective, the employer brand is a long-term strategy with a transparent message
that promotes the organization as an employer of choice.
EXTERNAL BRANDING
External branding refers to branding which is done by using external sources and which may
(or may not) require some investment in monetary or other forms. The different means of external
branding are:
Use of job sites As HR the first thing which comes to the mind is recruitment, so Job sites also offer
good branding opportunities through different means like Pop ups, pop ins etc.
Banners Banners are also a good mean for branding. Banners can be of both types means Online
Banner and Street banners. By Online banner, the organization name will be flashed on different web
pages as per your choice and price.
Organizing seminar, presentation The organization can organize talks, presentations, seminars etc.
for attracting people towards your organization.
Corporate social responsibility (CSR) - Corporate social responsibility refers to corporate getting
associated with society for some noble cause. The association can be in any mode either getting
associated with a Charitable Trust or a NGO or some other public venture.
Public events Public events are one of the major ways of creating a brand image. An organization
can participate in any of the public event and assuring that it does not get disappeared in the crowd of
many brands or big names.
Internal Branding
Internal Branding is concerned with the current and potential employees information about the
employment experience and what is expected of them. The different means of internal branding are:
Front office Always pay attention to your front office because first impression is last impression. It
should be kept neat and clean with a pleasant receptionist who always maintains freshness and
welcomes the guests with courtesy.
Stays interview HR department can always conduct stay interviews in which they can interact with
the employee and ask them regarding their career prospects, there alignment with the company, there
feedback regarding their concerned departments, etc. These feedbacks could be analyzed and therefore
an internal brand image of the country can be created.
Exit interview An exit always carries a fair chance of initiating the chain reaction among the
employees. By analyzing the exiting reasons, the organization can overcome the justified ones in the
future.
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Employee satisfaction - Employee satisfaction is always very important for any organization to grow.
A satisfied employee is a productive employee. The company must create a good and positive rapport
for the company in the market outside.
An Effective Employer Brand

In many respects, the employer brand trend has been propelled forward in reaction to the
deterioration of trust in business. Consequently, organizations and HR are under increasing pressure to
present their company as a reputable place to work. They use the employer brand to bolster confidence
in the company from the perspective of both the current workforce and candidates considering
employment with the company.
An effective employer brand is a long-term strategy with a transparent message. It reflects

how the organization wants prospective and current employees to see the company. The most highly
successful companies have three top goals for their employer brand: helping employees internalize the
companys values, achieving a reputation as an employer of choice, and recruiting and retaining
employees.
A 2006 study on employer branding, conducted by EMERGE International and Rada

Advertising, revealed that a majority of organizations view employer branding as a recruiting tool for
competitive advantage. In fact, two-thirds believe their brand assists them to attract and retain top
talent, 85% said that employer branding is important to their organization and 49% identified the
employer brand as one of the top five strategic initiatives for their firm in the next year.
HRs Role in the Employer Brand

The employer brand is best supported by a solid talent management strategy. HRs
participation in the establishment of strategic organizational goals, the workplace culture, corporate
core values, management style and community outreach strongly influences the employer brand. HR
professionals who work in talent management, benefits and compensation, employee relations,
knowledge management, and leadership development are all engaged in positions that ultimately have
an impact on staffing.
In fact, a key HR role is to raise awareness of the employer brand, such as through recruitment
advertisements, the company web site, presentations at conferences and community events. From the
company reputation to the routine experience in the workplace (i.e., getting paid on time, health
benefits being accurately processed, timely reimbursement of expense reports), HR itself brands the
workplace. For example, the candidates experience with the companyfrom the initial phone
screening to the final interviewshould reflect the employer brand. Was the candidate treated with
respect? Were the interviews held on time? Did the interviewers
CONCLUSION
Today, an effective employer brand is essential for gaining competitive advantage.
Increasingly, Indian corporations are becoming intentionally strategic to utilize the employer brand to
attract and retain talent for the expansion and growth. The increasing focus on competitive advantage is
leading many Indian firms to rethink their employer brands. A powerful employer brand has the
capacity to attract and retain talent and represent quality to its customers, with the goal of gaining
global recognition in a sustainable manner.
As organizations define and refine their employer brand and communicate it to the
marketplace, staffing management professionals will likely see positive results in attracting, recruiting
and retaining talent. HR must take advantage of the employer brand and reap the rewards for retention,
productivity and employee satisfaction, ultimately reflected in savings for the bottom line.
423
REFERENCES
Aaker, D.A. (1991): Managing Brand Equity: Capitalizing on the Value of a Brand Name,
The Free Press, New York,
Peters, T. (1999): The Brand You 50: Fifty Ways to Transform Yourself from an Employee
into a Brand that Shouts Distinction, Knopf Publishers, New York, NY.
Barrow, S., Richard M.( 2005): The Employer Brand: Bring the Best of Brand Management
to People at Work, John Wiley & Sons, Ltd. UK.
Sutherland, M. M., Torricelli, D. G., & Karg, R. F. (2002): Employer of choice branding
forvknowledge workers, South African Journal of Business Management, 33(4), pp.1320
Keller, K.L. (1993): Conceptualizing, measuring, and managing customer base brand
equity, Journal of Marketing, 57, pp 122.
Ambler, T. and Barrow, S. (1996): The Employer Brand, Journal of Brand Management, 4,
pp. 185-206
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A STUDY ON EMPLOYEE ATTRITION RATE SPECIAL REFERENCE TO IT
COMPANIES IN MADURAI
V.B.Devi BALA, Department of Management Studies, Michael Institute of Management, Madurai,

Tamil Nadu
Dr.P.Anbuoli, Department of Management Studies, Anna University of Technology Madurai
ABSTRACT:
The focus of this study is the employee attrition rate. The present investigation was carried out
in Madurai of the know the factors and the reasons for leaving the companies. The research was
conducted on 117 samples from the company through the research the company can know the attrition
level of the employees and the company can also take the opportunity to identify the factors which may
reasons for the attrition of the employees.
INTRODUCTION
A human capital is the real asset for any organization. All other resources in the organization
are used and utilized by the human resources of the organization. It is generally told human resources
are the best resource. So every organization has to protect their employees and their talent in
effectively.
In the best of worlds, employees would love their jobs, like their co-workers, work hard for
their work, and have chances for advancement and flexible schedules so they could attend to personal
or family needs when necessary. And never leave.
3.1Objectives of the study

To objective of the study is to study the attrition rate of employees in IT companies in
Madurai district and to identify the factors which influencing the attrition rate in IT companies. To
study retention strategy practiced in the companies to minimize the attrition rate in companies.
3. 2 Areas of focus of the study

The study aimed to study attrition rate of employee in IT companies. The study made for
analysis the level of attrition factors of the executives in IT sectors. Hence the present study is framed
to improve the performance of the executive in workplace.
4. Analysis and Result: Sample and data collection: A total of 120 structured questionnaires were
distributed at managerial level in various companies. Against the targeted sample of 120
questionnaires, 117 questionnaires have been collected and analyzed. Simple random sampling was
used to collect the data. The distribution of the questionnaire was done on the basis of suitability
mostly by contact directly. The concerned person were filled the questionnaire. As the questionnaire
was self explanatory, the respondents were asked to respond as per the instructions given in the
questionnaire and were assured of confidentiality. A total of 117 correctly completed questionnaire
were returned by the respondents. There were two sections of the questionnaire used to collect the
necessary data. The first position of the questionnaire inquired about the personal information of the
respondents. The second portion focused on attrition and consisted of 2 dimensions measured with the
help of 5 factors in 15 questions with the highest score being 75. The scale used in the questionnaire
included the Likert Scale. The Likert Scale used a rating of 1 to 5, where 1 indicates Highly Satisfied
and 5 indicates Highly Dissatisfied.
4.1Analysis of the Data:

The data was subjected to statistical analysis for the purpose of interpretation. Descriptive statistics
such as Chi-square, Factor Analysis, Percentage Method, were used as statistic tools.
425
5. Results:
Gender wise Classification of attrition rate especial on Salary
Table 5.1 GENDERS AND SALARY
GENDER Attrition rate
Female 67
Male 50
The above table shows that 67% of female respondents are having of salary problem and male
respondents having 50% of Salary problem.
QUALIFICATION WISE ATTRITION RATE
Findings: Employees with PG qualification have left more than those with UG qualification. This
suggests loss of more qualified manpower.
PERCEPTION TOWARDS COMPANYS TERMS AND

CONDITIONS
Findings: Employees have left more than those who doesnt satisfy with teams and conditions of the
organization. This suggests loss of more qualified manpower.
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PROBLEM OF MONOTONY IN JOB PROFILE
REASONS GIVEN FOR RESIGNATION
Reasons were asked from the nine factors: salary, benefits, job content, and opportunity for
development, relationship with supervisor, and relationship with peers, and location of workplace,
management policies and work culture, resources to do the job.
Among resigned employees, 40 employees gave salary, 25 employees gave opportunity for
development and growth, 10 gave supervisor and 1 gave resource to do the job in work place as a
reason for leaving.
FINDINGS: Salary and Opportunity for development and growth are the reasons given by most
employees for leaving the company.
FACTOR ANALYSIS FOR OVERALL ATTRITION FACTORS

The below table shows that in each factor which is high variance and low variance. Based on
correlation value in the variable assure in the variable into the factors. Here the high attrition factors are
in Salary, opportunity for growth, benefits and Supervisor relationship and others. Low attritions
factors are job content, location, and resources to do the jobs.
427
FACTOR ANALYSIS FOR OVERALL ATTRITION FACTORS
Component Matrixa
Communalities
Component
1 2 3 4 5 h2
q1 0.63 -0.336 -0.238 -0.049 -0.297 0.65705
q12 0.604 0.097 -0.264 -0.165 -0.056 0.474282
q11 0.579 0.097 -0.496 -0.176 0.32 0.724042
q7 0.352 0.611 -0.074 0.149 -0.314 0.623498
q14 0.257 0.487 0.161 0.294 0.412 0.585319
q13 0.307 0.442 0.329 -0.168 -0.059 0.429559
q6 0.28 -0.347 0.49 0.497 0.202 0.726722
q4 0.311 -0.36 0.47 -0.158 -0.023 0.472714
q5 0.45 0.141 0.374 -0.376 -0.209 0.547314
q8 0.245 0.349 -0.214 0.566 -0.317 0.648467
q2 0.308 -0.494 0.018 0.417 -0.1 0.523113
q9 0.434 0.368 0.267 -0.198 0.164 0.461169
q10 0.453 -0.56 -0.223 -0.045 0.426 0.752039
q15 0.449 0.4 0.033 0.183 0.183 0.429668
q3 0.477 -0.528 0.097 -0.017 -0.283 0.5961
Eigen
Value 2.736364 2.461103 1.290506 1.180064 0.983019 8.651056
Variance
Explained 0.182424 0.164074 0.086034 0.078671 0.065535
% of
variance 18.24243 16.40735 8.603373 7.867093 6.55346
FINDINGS
Although salary is important, but it is not the most important reason for employee attrition in
the organization
Most important reason for attrition is opportunity for development and growth
Next important factor came out to be Salary followed by Job content and Relationship with
supervisor.
SUGGESTIONS
Induction process needs to be more effective and interesting. Employee expectations should
not be raised too high
Provide 360 degree feedback. Online appraisal system (FAIR) needs to be more effective and
fair
Recognize employees for good performance- MLP (managerial leadership program) and ELP
(employee leadership program) are to evaluate potential, but instead they should be
performance based
Mentoring programs, on-line personal assessments
Invest in training and development- programs should be frequently conducted and customized
to needs of employees- Competency Mapping.
Fresh graduates should be provided sufficient amount of training before job is assigned to
them.
CONCLUSION
Study of HR practices and employee attrition in the organization was a great learning
experience. It helped in understanding the intricacies of HR role in an organization. The study helped in
finding out the most critical reasons responsible for employee attrition in the organization. It brought
428
various concerns of the employees to the forefront. Apart from the project there was also a lot of on-
the-job training which helped enhance HR skills and gain a better understanding of the functioning of
HR. It was an effective learning in combining the theoretical and practical aspects relating to project.
There has been immense learning in the field of employee retention. The basics about attrition and
retention, attrition calculation, cost of attrition, consequences of high attrition rate and reasons for
attrition.
REFERENCES
William Anthony, Pamela Perrewe & Michele Kacmar (1999)-HRM:A Strategic Approach-
3rd Ed.
Cherrington, David J. (1995). The Management of Human Resources. Prentice- Hall. Mondy,
R. Wayne, and Noe, Robert M. (1996). Human Resource Management. Upper Saddle River,
Prentice-Hall.
Nadler, Leonard, and Wiggs, Garland D. (1986). Managing Human Resource Development.
San Francisco: Jossey-Bass.
Decenzo, D.A. and S.P. Robbins.1988. Human Resource Management. New Delhi: Prentice-
Hall of India Pvt. Ltd.
William, B.W. and Keith Davis. 1993. Human Resource and Personnel Management. MC
Grow - Hill.
Appelbaum, Eileen, Thomas Bailey, Peter Berg, and Arne L. Kalleberg (2000), manufacturing
advantage Why high performance work systems pay off, Ithaca: ILR Press.
Barney, Jay. Firm Resources and Sustained Competitive Advantage. Journal of
Management 17 (March 1991): 99120.
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PERFORMANCE AND COMPENSATION MANAGEMENT WITH SPECIAL
REFERENCE TO IT INDUSTRIES.
Dr.A.Lakshmi, Director, School of Management, K.S.Rangasamy College of Technology,
Tiruchengode.
and M.Maheswari, Assistant Professor and Research Scholar, School of Management,
K.S.Rangasamy College of Technology,Tiruchengode.
ABSTRACT
Performance management is the process of creating a work environment or setting in which
people are enabled to perform to the best of their abilities. Performance management is a whole work
system that begins when a job is defined and ends when an employee leaves the organization.
Performance is the sum of behavior plus results. Performance management has two goals, the first goal
is to create competency in people and the second goal is to create growth in employees. Compensation
is a systematic approach for providing monetary value to employees in exchange for work performed.
It may be given for several purposes namely assisting in recruitment, job performance and job
satisfaction. It is an integral part of human resource management which helps in motivating the
employees and improving organizational effectiveness. Performance based pay is a type of
compensation system where it has two major types i.e., pay for group performance and pay for
individual performance. According to Development Dimensions International (DDI), performance
management systems are active in 91% of 3,600+ organizations studied. The current trends in
Performance use the Strategic HR which is the link between Employee Performance Management and
Organizational Performance. A number of common practices emerged in Industries and Software-
aided performance management systems are uniquely suited to enable organizations to meet challenge.
The best practices are Simplicity, Alignment with Business Objectives and Strategy, Decentralized
Control, Training, Less Emphasis on Rating, Employee Participation and "Ownership", competencies,
team-based objectives in individual performance plans, Flexibility, measurement process and
Employee development. Organization must use compensation as one of their most important
communication tools. It can be utilized to send a message about the organizations expectations and
goal achievement rewards to the employees. It should include measurement system for awarding
variable pay.
1. INTRODUCTION
An effective strategy is to align the goals of the organization with the practice by creating a
more direct relationship between performance and compensation. Performance based plan is a
development process utilizing a strategy of inclusion, participate in every step, implement a developed
plan with the highest possible level and incorporates adequate incentives to enhance the desired
behaviors.
An organization review various compensation plans. Selection of an appropriate plan is highly

dependent on the specific characteristics. Performance can improve by step procedure i) survey ii)
reward iii) standardize iv) communicate. Performance is the sum of behavior plus results, Performance
= behavior + results. Compensation is an integral part of human resource management which helps in
motivating the employees and improving organizational effectiveness.
Compensation structure is comprised of three levels i) foundation range ii) career range iii)
expert range. Human performance improvement is a powerful tool that can be used to help build
intellectual capital, establish and maintain a high performance workplace, enhance profitability and
encourage productivity.
NEEDS OF PERFORMANCE AND COMPENSATION MANAGEMENT

A good compensation package is important to motivate the employees to increase the
organizational productivity. It helps in running an organization effectively and accomplishing its goals.
The most competitive compensation will help the Organization to attract and sustain the best talent.
430
The components of a compensation system include: Job Descriptions, Job Analysis, Job Evaluation,
Pay Structures, Salary Surveys and Policies and Regulations. The Different types of compensation
include: Base Pay, Commissions, Overtime Pay, Bonuses, Profit Sharing, Merit Pa, Stock Options,
Travel/Meal/Housing Allowance and Benefits including dental, insurance, medical, vacation, leaves,
retirement, taxes.
CURRENT TRENDS IN PERFORMANCE AND COMPENSATION MANAGEMENT

Most of the organizations are utilizing performance management systems / performance
management software. The current trends in performance are Strategic HR - The Link between
Employee Performance Management and Organizational Performance and 90% of companies
surveyed, perceive improved management of their workforce as key to gaining competitive advantage.
Organizations are aligning their employee performance goals with corporate performance goals
through technology solutions. Increased Integration of HR Functions and Increased Automation of
Performance Management and HR Functions.
ONLINE PERFORMANCE MANAGEMENT SYSTEMS

HR executives identify improvement of HCM (Human Capital Management) technology as a
key response to their business challenges. The main areas of focus are hiring management solutions,
pre-employment assessment, employee self-service and performance management. Most of the
organizations are stuck in paper-based performance evaluation systems with annual reviews. As
companies transition to online performance management systems, some key ingredients are:
Scalability, Employee self-service and Integration.
WEB - BASED SOLUTIONS

Halogen Software offers E-Compensation, a leading web-based solution that helps streamline
the compensation process by: Suggesting pay adjustments based on appraisal scores and other criteria,
Providing convenient access to key background information on every employee, Automatically
verifying all recommendations against established budgets and pay guidelines and flagging those
outside corporate policy and Automating workflow and reminders to keep the whole process moving
until final approvals are in place
Best Practices in Industries:

The ideally suited to support performance management best practices are software-based
systems. Understanding and implementing the following practices becomes the challenge for
performance-focused
CONCLUSION
Performance based pay is a type of compensation system where it has two major types: pay
for group performance, pay for individual performance. Organization must understand the performance
standards necessary to achieve the desired level of compensation and must be provided with accurate
information. The reality is each individual brings a unique contribution to his / her job. The ability of
performance system to recognize how work is accomplished as well as what is accomplished.
Unfortunately in many organizations today performance management process is flawed. To succeed in
competitive and demanding global environment, every organization must continuously improve their
performance using performance system and accordingly compensation has to be provided.
REFERENCES
Total compensation management, taming cost and rewarding employees by Aberdeen Group,
April 2008.
Innovative Trends and Strategies in Compensation and Performance Management by standard
Chartered, 18th July 2006.
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New Approaches to Compensation Management for Information Technology Professionals by
Marsha Benenson-Farley & McKenzie Hall, Celeste Giunta.
Implementing a performance based compensation plan the secret is in the development
process by jonathan M.Stern.
Performance Management: Impacts and Trends by Roger Sumlin.
Case study: Creating a high performance culture in Siemens.
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NATURE AND CONSEQUENCES OF STRESS AND WORK LIFE BALANCE
DR.S.V.SHINDE, D.A.V.Velankar College Of Commerce,Solapur
INTRODUCTION.
Occupational stress and workplace health are gaining significance in both corporate and social
agenda. The business environment has grown more complex today. Organizations are now
experiencing a new culture of increased speed, efficiency and competition. The increased pressures that
get passed on from the business to the individual employees, and the amount of time spent at work, it is
not surprising that the levels of stress are also on the rise. Social life has also undergone transformation
with rising number of nuclear families, empowered women' working couples and divorces. The
changing Complexions of work place, and personal life have increased the levels of stress leading to
loss of control over one at life and business. Over the last decade, the escalating costs associated with
workplace stress indicate an international trend among industrial countries. Work-life balance is a
persons control over the conditions in their workplace. It is accomplished when an individual feels
dually satisfied about their personal life and their paid occupation.
STRESS AND PERFORMANCE

A study of mental health policies and programs for workforces in Finland, Germany, Poland,
United Kingdom and United Sates shown an increasing incidence of mental health problems with
almost one in ten workers subject to stress, depression, anxiety or burnout, leading to consequences of
unemployment and hospitalization quality.The employees suffer from burnout, stress, anxiety, low
morale, depression, health problems and, in some extreme cases, even sigma associated with mental
illness. It is therefore very important for organizations to understand the relationship between employee
health and productivity and improve their management strategies by developing and implementing
programs that are supportive of work and family issues.
DEFINITION OF STRESS
1. According to the late Dr. Hans Selye, Stress is the sum of all the non-specific effects of factors that
can act upon the body.
2.By Lazarus & Folkman : The process that occurs in response to events that disrupt or threaten to
disrupt, our physical or psychological functioning.
3.By Jerald Greenberg and Robert A Baron : The pattern of emotional states and physiological
reactions occurring in response to the demands within or outside an organization.
4.The Oxford Dictionary of HRM defines job stress as a condition where an aspect of work is causing
physical or mental problems for an employee.
Types of Stress Some good Some bad

Did you know that some types of stress can be good for you? That's right! Some forms of stress
can be good for you, but other types of stress disorders can cause major health problems and even be
life threatening. Stress is a natural function of the body, but understanding the different types of stress,
such as distress and eustress, helps you to better understand how to deal with the stress you find in your
life. changes.Effect on Human Cognition i.e. thinking mind takes place as per the stress process. What
is the "fight or flight response?"
This fundamental physiologic response forms the foundation of modern day stress medicine.
The "fight or flight response" is our body's primitive, automatic, inborn response that prepares the body
to "fight" or "flee" from perceived attack, harm or threat to our survival.
What happens to us when we are under excessive stress?

When we experience excessive stresswhether from internal worry or external
circumstancea bodily reaction is triggered, called the "fight or flight" response. Originally discovered
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by the great Harvard physiologist Walter Cannon, this response is hard-wired into our brains and
represents a genetic wisdom designed to protect us from bodily harm. This response actually
corresponds to an area of our brain called the hypothalamus, whichwhen stimulatedinitiates a
sequence of nerve cell firing and chemical release that prepares our body for running or fighting.
Coping Strategies:- There are 2 types of coping strategies for balancing work life.
A. Organizational Coping strategies:-
These are more and more proactive in nature. It attempts to remove potential stressor and
prevent the onset upset of individual job holders. These strategies revolves around those factors which
produce and help producing stresses.
Supportive organizational climate: Organizations control the faulty organizational processes

resulting into stress by creating supportive organizational climate. It depends on managerial leadership.
The focus is primarily on participation and involvement of employees in decision making process.
Job enrichment : A major source of stress is monotonous and disinteresting jobs being perform by
employees in the organizations. Through more rational designing of jobs they can be enriched.
Improving content factors i.e. responsibility, recognition, opportunity for achievement and
advancement, so also improving core job characteristics such as skill variety, task identity, task
significance, autonomy, and feedback may lead to motivation, feeling sense of responsibility and
utilizing maximum capability at work helps to reduce stress.
Organizational Role Clarity: People feel stress when their role is not clear. It may be due to role
ambiguity or role conflicts. So role analysis technique should be adopted to know what the job details
are and what are expectations. Role ambiguity, role conflicts and role overload can be minimized
leading to reduced stress.
Career Planning And Counseling:Organization can make aware the employees about additional
qualifications, training and skills they should acquire for career advancement.
Stress Control Workshop:The organization can hold periodical workshop for control and reduction in
stress.
Employee Assistance Proram:Organization can make arrangement for assisting individuals in

overcoming their personal and family problems.
Individual Level Coping:
Temporary Relief:A.Physical Exercise is a good strategy to get body fit and to overcome
stress.(Walking, jogging , swimming, are the examples).
Work home transition : a person may attain to less pressure inducing type or routine work during the
last 30 or 60 minutes of work time.
Relaxation: Specific technique of relaxation are bio feedback and meditation. In biofeedback the
individual learns the internal rhythms of a particular body process through electronics signal feedback
that is wired to the body area.
CONCLUSION
A systematic assessment of the risk of stress caused, or made worse, by work and this stress
levels in an organization. Stress audit is a proactive approach to the management of stress at work. It
helps to assess organization and individual strengths and weaknesses and acquire the information
necessary to focus on the desired response.Work Life Balance can be understood when we understand
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the origin of stress in human life. Man is one of the creation of God as living and thinking organism in
this world. Work-life balance means a harmonious balance of work and domestic life. It allows an
employee to fulfill all the roles in his/her life effectively and efficiently. Researchers have proved that
employees are at their best when they are contented and motivated both at work and at home.
Achieving a work-life balance is not as easy as it seems. In the corporate world, change is constant and
imminent . The impact of globalization has further fuelled these changes. The corporate world signifies
uncertainties, too many responsibilities, and long work hours. .These changes in the environment
disturb the balance between domestic and work-life of employees. The increasing competition and
demands of society further aggravate the situation. All this adds up to stress.
REFERENCE
a. Ferrell O.C., A Framework fo r understanding Organizational Ethics in Business
Ethics, New Challenges for Business Schools and Corporate Leaders
(2005),Prentice-Hall India, pg.4
b. Ferrell O.C., A Framework for understanding Organizational Ethics (Kohlberg), in
Business Ethics, New Challenges for Business Schools and Corporate Leaders
(2005), Prentice-Hall India, pg.10
c. Peterson Robert and Albaum Gerald, Benchmarking Student Attitudes Regarding
Ethical Issues in Business Ethics, New Challenges for Business Schools and
Corporate Leaders (2005), Prentice-Hall India, pg.136
d. Hooker John, A Study in Bad Arguments. In Journal of Business Ethics Education,
Carnegie Mellon University (2004) Senate Hall Academic Publishing.
e. Fernando A. C., Business Ethics An Indian Perspective (2009), Pearson
Education
f. Kishore Lalit Value Oriented Education Foundations and Frontiers. World
Overview, (1990) Doaba House Publishers, New Delhi.
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PERCEPTION OF EMPLOYEES TOWARDS NEED FOR TRAINING IN AVIATION
INDUSTRIES
PROF.J.NIRUBRANI, RVS Institute Of Management Studies, Coimbatore.
ABSTRACT
Revolutionized by liberalization, the aviation sector in India has been marked by fast-paced
change in the past few years. From being a service that few could afford, the sector has now graduated
to being a fiercely competitive industry with the presence of a number of private and public airlines and
several consumer-oriented offerings. The sustainability of the sector lies in shaping the skills and
capabilities of the employees which would result into the efficiency in business. As the efficacy of the
employees enhances the business effectiveness, the need for training becomes new mantra which aims
to support the human resource to think innovatively. The present paper aims to bridge the gap between
the existing need for training and the emerging the needs.
Key words: airlines, competitive, training
INTRODUCTION
Training is seen as a Knowledge Management and People Management practice and as a key
process for growth, Training needs are identified and analyzed. The Training desk publishes a training
calendar for the year. The project manager raises the training requisition and training is provided to all
as per scheduled. Information Technology is one of the leading engines of economic growth. Its
development has immensely transformed the business environment and the pace is still accelerating.
No other change has ever affected the business operations and work force as much. Running a business
now has become a real roller-coaster ride. Trial and error strategies, as well as hit and miss solutions
have become rather common. In this digital era of intense competition, unplanned and well thought out
plans have to be rolled out in a very short time span to ensure success. Computers have come to stay!
was a widely prevalent clich. Presently, people wonder if the computers have come to rule. Such is
the grip of computer-based technology in all aspects of life. Globalisation of business, sophisticated
technology, complexity of work and accelerating changes has made learning very important for
organisations.

To study the profile of Aviation industries.
To understand the perception of employees towards training and development programmes.
To analyze the need for training the employees at aviation industries.
METHODOLOGY
A clear objective provides the basis of design of the project. The main objective of this
study is to find out the training need analysis in aviation industries at Chennai. The data which are
collected is fresh. Since it is original in character is called as primary data. Data collected from the
employees working in aviation industries. Through the questionnaire method is first hand information
and in research, terms can be called as primary data. The sampling technique chosen was Simple
Random Sampling. Percentage Analysis method and Rank and concords are used to analyse the data.
TRAINING NEED ANALYSIS

An analysis of training need is an essential requirement to the design of effective training. The
purpose of training need analysis is to determine whether there is a gap between what is required for
effective performance and present level of performance. The purpose of a training needs assessment is
to identify performance requirements and the knowledge, skills, and abilities needed by an agency's
workforce to achieve the requirements. An effective training needs assessment will help direct
resources to areas of greatest demand. The assessment should address resources needed to fulfill
organizational mission, improve productivity and provide quality products and services. A needs
assessment is the process of identifying the "gap" between performance required and current
performance. When a difference exists, it explores the causes and reasons for the gap and methods for
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closing or eliminating the gap. A complete needs assessment also considers the consequences for
ignoring the gaps.
The support of top management seems to score the highest ranks. The least score is given to
the concurrent vis-a-vis the support of subordinates. Support of co-workers also seems to have
fallen the third place. This goes to show that though the institutions have adequate support in
most of the companies, the support of middle level management and subordinates are not at
par with the top management. Unanimous support of all the cadres of workers in the middle
and lower level management should be extended to achieve the desired goals of the
companies.
On the job training seems to score the highest rank. The concurrent aspects obtain the
subsequent ranks. Computerized materials seem to have fallen in the second rank and feed
backs in the third rank. Job enlargement and the sponsored formal degrees like B.E., MBA
receive tenth and eleventh ranks respectively. This reveals that the employees need more
practical exposure with the strong theoretical frame work and feedback mechanism. Though
seminars, online contacts, manuals supplied, review meetings etc. are the essential aspects, the
management should pay prior attention to streamline the on the job training process.
The perception of respondents viz, Well trained for my assignment seems to score the
highest rank. The concurrent perception of the respondents obtains the subsequent ranks.
Finishing work within my regular work hours and Company gives equal opportunity seem
to have fallen in the second rank and third rank respectively. The lowest rank is given to
training is a waste of time. This goes to show the satisfaction of employees towards the
conduct of training programmes giving importance to the effective completion of assignments
and in time.
Time management records to score the highest rank both in the need and effectiveness of
training. Technical skills, presentation skills and communication skills occupy the second,
third and fourth positions respectively. Need and effectiveness of concurrent types of training
are almost relevant in the context of present job. However, the quality management receives
twelfth rank in the case of need for training whereas it occupies seventh rank with regard to
the effectiveness. Critical management and interviewing obtains the least score both in the
need and effectiveness of training.
Therefore, sincere steps have to be taken by the top management to analyze the need for the
conduct of programmes which record the least scores. The entry of younger generations into
aviation field creates voracious need to conduct various types of training programmes. Among
these programmes, the main focus is given to kindle the employees to perform their
assignments within a time bound. As the companies need more technical expertise followed
by presentation and communication skills on the part of employees, the training programmes
aim to upgrade these skills of the employees.
SUGGESTIONS
Skill matrix programs and awareness about latest technology could be trained to the
professionals on monthly or quarterly basis for upgrading their knowledge and skills sets.
To avoid work stress in their job at the last movement.
The employees are facing problems in the area of technical, job stress and so on. Those
problems could be overcome by providing appropriate training to the needed employees.
The company could provide more training on computer skills since it is expected by majority
of employees.
The company could implement job rotation system.
The company could also provide leadership training for employees to achieve their career
goal.
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CONCLUSION
Any training program should not be a readymade package. The training should be offered and
constructed according to the needs of the participants, with importance and consideration given to the
time management and the technical skills of the employees because, airline employees always need to
be alert and intellectual. From the findings of the study it can be concluded that majority of the
employees are needed more training in Aviation industries. If the company gives more focus on this
aspect, they could do even better in future.
REFERENCES
1. mahmood.manzoor@messier-dowty.com , mahmood.manzoor@gmail.com
2. David Learmount ,Airline pilot training needs a complete re-think, Flight International:
27/01/09
3. Kothari C.R. Research Methodology (2000); Methods and Techniques, Second Edition, New
Age International (P) Ltd., New Delhi. 2000;
4. http://www.iata.org/whatwedo/economics/issue_briefing_new.htm. IATA Economic Briefing
Passenger and Freight Forecasts 2007 TO 2011 - OCTOBER 2007
5. http://www.afraassociation.org/ Aircraft Fleet Recycling Association webs
438
EVOLUTION OF HR PRACTICES IN INDIAN CORPORATE
Mr.S.Karthikeyan, Assistant Professor, Anna University of Technology, CBE
Ms.S.G.Aparna Lecturer, Coimbatore Institute of Engg and Technology,CBE
INTRODUCTION
Even though Human Resources is a relatively modern management term coined in the
1960s, the importance of Human Resource Management can be traced back to Vedic ages! Yes, in The
Bhagavad Gita, Lord Krishna not only makes Arjuna spiritually enlightened, but also teaches him the
art of self management, anger management, stress management, conflict management, transformational
leadership, motivation, goal setting and many other aspects which are now essential parts of any HRM
curriculum.
In fact, many B-Schools today consider The Bhagavad Gita a guide to developmental
strategies that are so essential in modern management. However, unlike the western approach to HRM,
which entirely focuses on external world of matter and energy, The Bhagavad Gita explores the inner
self.
What is Human Resource Management?

Michael Armstrong, in A Handbook of Human Resource Management Practice, describes
Human Resource Management as the strategic and coherent approach to the management of an
organization's most valued assets - the people working there who individually and collectively
contribute to the achievement of the objectives of the business. With the growing importance of
human capital as a success factor for todays organizations, the role of HR has become more critical for
corporate India as it offers a way to vault into the global league.
Indias changing HRM horizon

The outlook to Human Resource Management in India has witnessed sea-change in last two
decades. Economic liberalization in 1991 created a hyper-competitive environment. As international
firms entered the Indian market bringing with them innovative and fierce competitiveness, Indian
companies were forced to adopt and implement innovative changes in their HR practices. Increasing
demand for skilled performers forced the companies to shift focus on attracting and retaining high-
performing employees in a competitive marketplace.
Emphasis on employees
Human Resource policies, forming the framework for the culture in the business management,
create awareness towards the need to achieve the business goals in the best possible and ethical
manner. Indian companies have realized that in today's competitive business milieu, the quality of
people you employ can make all the difference. In the last few years, the Human Resource has become
a key player in strategic planning it has come a long way from traditional HR operations like
managing the recruitment process, handling staff appraisals. That is why Infosys CFO T. V. Moahndas
Pai and Marico CFO Milind Sarwatewas were moved to head the human resources (HR) function in
their respective companies. Rajiv Dube, CEO and managing director of Rallis, left his position to join
as HR chief at automobile major Mahindra & Mahindra. +
HRM Challenges
One of the challenges HR managers face is issues of upgradation of the skill set through
training and development in the face of high attrition. Indian companies are recognizing their
responsibilities to enhance the employees opportunity to develop skills and abilities for full
performance within the position and for career advancement.
Progressive HR Policies
In 1974, an angry Sudha Murthy had to write a letter to JRD Tata to protest against job
discrimination against women in Telco. Today, most Indian companies are committed to providing
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equal employment opportunities for all. The employers are increasingly realizing the value of trained
human resource, especially women in India. Some organizations are changing their HR policies to stick
with their valuable employees. MNCs like Pepsico are providing flexibility so that female employees at
various life stages could benefit from these policies like working from a different city, sabbatical from
corporate life, and extended maternity leave.
Entrepreneurship by employees
India Inc. is encouraging 'intrapreneurs' or employees who have ideas that could potentially
become a venture. Companies like Pepsico, NIIT, and Adobe are actively promoting practice of
entrepreneurship by employees within the organization. Human Resource Management has taken a
leading role in encouraging CSR activities at all levels. Companies like Wipro inculcate CSR values
amongst its workforce right at the beginning during the induction process. Corporate presentations and
keeping employees updated through regular newsletters are the instruments used by HR to keep
employees energized about the organizations socially responsible initiatives.
Over the last decade, India's vast manpower has played an instrumental role in its economic
success story. Indeed, the success of Indian companies is not based on superior access to raw materials
or technology or patents, but fundamentally upon human skills. The synergy between the strategic
planning and innovative HRM practices will be pivotal as Indian Inc. embarks itself on the global
journey.
NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such
as relocation, orientation and translation services to help employees adapt to a new and different
environment outside their own country.
Selection of employees requires careful evaluation of the personal characteristics of the
candidate and his/her spouse.
Training and development extends beyond information and orientation training to include
sensitivity training and field experiences that will enable the manager to understand cultural
differences better. Managers need to be protected from career development risks, re-entry
problems and culture shock.
To balance the pros and cons of home country and host country evaluations, performance
evaluations should combine the two sources of appraisal information.
Compensation systems should support the overall strategic intent of the organization but
should be customized for local conditions.
In many European countries - Germany for one, law establishes representation. Organizations
typically negotiate the agreement with the unions at a national level. In Europe it is more
likely for salaried employees and managers to be unionized.
CONCLUSION
The present study was based on the framework that the HRM practices shape the pattern of
interactions between and among the managers and employees. Further, the organizations generally
organize human resource practices that are consistent with their organization culture. This study clearly
indicates that the HRM practices along with organization culture play a significant role and affect the
managerial effectiveness of the organization.
Training and development, self-realization, career management and socio-economic support

were strong prerequisite of managerial effectiveness in the public sector organizations. The findings of
this study are indeed significant for the HR practitioners. However, these results cannot be generalized
considering the size of the sample, but they show a definite direction.
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Human resource management practices are a potentially powerful lever for shaping the culture
of the organization and along with the organization culture; they are a strong predictors of managerial
effectiveness.
REFERENCES
Athreya M. (1996): The new people organization, Business Today. Jan., p. 21. Business Today
(1996). The HRD Survey. Jan., pp. 721, New Delhi.
Carroll D.T. (1983): A disappointing search for excellence. Harvard Business Review, 61: 7888.
Datta K. D., Guthrie J.P., Wright P.M. (2005): Human resource management and labor
productivity. Academy of Management Journal, 48:135145.
Delaney J.T., Lewin D., Ichniowski C. (1989): Human resource policies and practices in
American firms. Government printing office, Washington DC.
Del Valle C. (1993): From high school to high skills. Business Week, April, pp. 110112.
Denison D.R, Mishra A.K. (1995): Toward a theory of organizational culture and effectiveness.
Organization Science, 6: 204223.
441
RETENTION OF HUMAN RESOURCES- CHALLENGE IN GLOBAL
MANAGEMENT
G.Sivakumar, MBA, Mphil., MA (PMIR)., Assistant Professor,
SNR Institute of Management Studies, SNR College, Coimbatore.
Issues:
Causes of high employee turnover in organizations
Challenges faced by organizations in the process of retaining employees
Keywords:
Business environment, attract candidates, retain, organization, high employee turnover, top
management, morale, retention strategy
In today's rapidly changing business environment, it is not only important to attract

candidates, but at the same time to retain them. When an organization has a high employee turnover, it
is important for the top management to immediately understand and analyze the causes and devise
strategies to retain employees. High employee turnover also affects the morale of the other employees.
In this small world even companies are reachable to the people and vice versa. And so their
jobs are also easily accessible for everyone. In this situation, the biggest challenge for a company is to
retain its workforce intact especially the Knowledge Banks. All the companies are planning to increase
their turnover every moment of time. While in all this workout of increasing the turnover they forget
about their loss incurred by the resignation of employees and the expenses of hiring new employees
(Hiring Cost, Training Cost, Productivity Loss etc.). This hiring of a new employee normally costs
around 35% or more of the average employee salary.
Employee Referral Plan- the management can introduce Employee Referral Plan. This will reduce the
cost (charges of external consultants and searching agencies) of hiring a new employee and up to an
extent. On every successful referral, employee can be given a referral bonus after 6 or 9 months of
continuous working of the new employee as well as the existing employee. By this we can get a new
employee at a reduced cost as well as are retaining the existing one for a longer period of time.
Loyalty Bonus- The management can introduce a Loyalty Bonus Program in which reward your
employee after a successful completion of a specified period of time. This can be in the form of Money
or Position. This will encourage the fellow employees as well whether they are interested in money or
position, they will feel fascinated.
Giving a voice to the Knowledge Banks- First of all we should try to retain our workforce intact, as
they are the intellectual asset of the company. And above that we cant afford losing your knowledge
banks. These are the people who stabilize the process. we can involve them in some of the decisions.
Employee Recreation- we should also let our employees enjoy in a light mood. we can take the
employees to a trip or for an outing every year or bi-yearly. And we can make use of this trip as well.
we can start this trip with an opening note about the management views and plans, strategies etc. At the
same time you can involve your top management into some of the fun activities as this will make feel
the employees that they are very close to the management and everybody is same.
Gifts at some Occasions- The management can give some gifts at the time of one or two festivals to
the employees making them feel good and understand that the management is concerned about them.
Accountability- we should make each employee accountable so that he can also feel that he is as
important as his manager. If he/she will be filled with this sense, he/she will seldom think of leaving
the company.
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Making the managers effective and easily accessible- we should make the management easily
accessible so that the employee expectations can be clearly communicated to the top management, as it
is impossible for the top management to reach each employee frequently.
Surveys- conduct regular surveys for feedbacks from employee about their superiors as well as other
issues like food, development plans and other suggestions. This will make them feel of their
importance and the caring nature of the company. Some of the suggestions might be of real good use
for the company.
To conclude
The importance of human resource as a means of ensuring sustained growth for any
organization cannot be over emphasized since it is the fundamental strength on which all strategies are
based in the contemporary business world. Hence, effective employee management tops the priorities
for any progressive institution, which is looking forward to excel in its field. Attraction, retention,
preservation, and growth of employees are the key tools of human resource planning which ensures that
the best possible skill and talent is available to back all the plans for achieving organizational goals.
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TALENT MANAGEMENT
Dr.P.Radha, Associate Professor, RVS Institute of Management Studies, Coimbatore
ABSTRACT:
fundamental benefit for any organization. Talent management is often defined as performance
management, incentive compensation, or talent acquisition. Talent management is also often confused
with leadership development. Although leadership development is a crucial function of your
organization, focusing on it exclusively is a legacy of last century. Our modern service and knowledge
economies in the talent age require a broad and holistic view. A high performance business depends on
a wide range of talent.
ongoing processes and practices to maintain a stellar workforce. Today, many organizations are
struggling with silos of HR processes and technologies. The future of talent management is embodied
in solutions designed from the ground up to provide business-centric functionality on a unified talent
management platform. Talent management requires strong executive support, along with systems and
processes all directed towards having the right talent doing the right work at the right time. Thats when
talent truly drives higher business performance.
Significance of successful talent management practices are:

The key enabler of any organization is talent.
The quality of your people is your last true competitive differentiator.
Importance of Talent Management

The professionals at HR Dimensions apply proven techniques to make sure you get the right
person for the right position at the right time and hold on to those employees who really make a
difference in your company. These talent management techniques include, but are not limited to:
Executive & Professional Search

Retained and Exclusive Contingency Searches
Staffing and Recruiting Process Development
Behavioral Interviewing Training
Career Transition
Outplacement
Senior Executive Programs
Group Outplacement Seminars
Career Management - Individual & Corporate
Performance, Compensation, and Rewards Management

Performance Management Systems
Total Compensation
Best Practice and Research
Compensation Systems/Structure and Market Pricing
STRATEGY
The professionals at HR Dimensions can show you the value of using people to your
company's strategic advantage. Customized to your company's specific needs, we will help you with:
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Organization Effectiveness
Strategic Planning
Restructuring and Organization Design
Balanced Scorecard
Organizational Effectiveness Reviews
Employee Engagement/Retention
Succession Planning & Talent Reviews
Culture and Change Management
Workforce planning
Managing the talent management process requires a balanced set of performance measures. A
balanced set of measures should evaluate the performance of each major phases of the process
providing a holistic view and forming a combination of lead and lag measures, facilitating effective
management and control.
1. Talent identification performance measures;

2. Talent development (Internal) performance measures;
3. Talent retention and engagement performance measures;
4. Talent development (External) performance measures.
CONCLUSION
Talent Management, often times referred to as Human Capital Management, is the process
recruiting, managing, assessing, developing and maintaining an organizations most important
resource-its people. The ability of an organization to achieve its strategic objectives and execute its
performance improvement plan would depend on its organizational talent. Managing talent requires a
straightforward process to identify, develop and retain. The outcome of talent management efforts
would depend on the performance of the talent management process and managing the process requires
performance measures that provide a holistic picture. Talent management refers to the process of
developing and integrating new workers, developing and retaining current workers, and attracting
highly skilled workers to work for a company.
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A CASE STUDY ON WORK LIFE BALANCE AMONG THE EMPLOYEES AT TVS
SRICHAKRA LIMITED
B. Poongodi B.Sc. (Agri), MBA, M.Phil, (Ph.D.), Assistant Professor, Dept. OF Mgt. Studies,
SNS COLLEGE OF ENGINEERING, Coimbatore-641107
ABSTRACT :
The Case study entitled WORK LIFE BALANCE AMONG THE EMPLOYEES was carried
out in the production unit at Madurai TVS Srichakra. The objective of this research is to provide
information about possible causes of work-life related difficulties and to ascertain the demand for
work-life balance practices. This study would give an insight of what the organization doing well to
its employees in relation to work-life balance, to ascertain employees view on the impact of
work/life balance practices, to identified individual coping strategies to manage stress and to
provide recommendations on how family practices can be improved. So there was a requirement
from the organization to ascertain the factors supporting work-life balances and to provide the
method to accelerate the implementation of a very successful work-life strategy within
organization. The survey was conducted among employees particularly in ten departments namely
Human Resources Department, Personnel Department, Account Department, Project Department,
Secretarial department, Civil Department, IT Department, EDP Department, Marketing Department
and Utility Department. Primary Data was collected using a structured Questionnaire and related
review of literature was done with the secondary data from various Journals and Boks. The primary
data thus collected was analysed. The appropriate statistical tools were used for analyzing the collected
data that include the chi-square test, Pearson chi-square test, mode, standard deviation, one sample t-
Test and percentage analysis. The corresponding charts were also made for easy understanding of the
analysed data. Findings were drawn and interpreted and suitable recommendations were made to the
company.
1.1.1 INTRODUCTION:
Work life balance is receiving increasing attention. The demand for work-life
balance solutions by employees and managers is expanding at an unprecedented rate. As a result
work-life balance is an increasingly hot topic in organizations today. Over the coming decade it will be
one of the most important issues that executives and human resources professionals will be expected to
manage. Research indicates that balanced work-life can lead to greater employee productivity. With
the progressive shift of the economy towards a knowledge economy, the meaning and importance of
work life balance is assuming a new significance. Work life balance refers to a range of flexible
working arrangements that go beyond statutory entitlements and that assists employees to combine
employment with their family life, with their caring responsibilities and with their personal life
outside the workplace. In the current economic environment, work life balance now ranks as one of the
most important workplace attributes, according to research conducted by the Corporate
Executive Board.

To ascertain the demand for work-life balance practices.
To indicate what the organization doing well to its employees in relation.
To ascertain the factors supporting work-life balance practices.
To provide information about possible causes of work-life balance related difficulties.
To identify individual coping strategies to manage stress.
To ascertain employees view on the impact of work-life balance practices.
To provide the methods to accelerate the implementation of very successful work-life
strategy within organization.
To provide suggestions on how family friendly practices can be improved in the TVS
Srichakra Limited.
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INTRODUCTION:
To achieve the objective of a study, a methodology is designed. The research design and
sampling design were explained briefly. The tools and methods used for data collection and are
explained. Limitations of the study are also explained in this chapter.
SAMPLING DESIGN:
Sample method:
The sampling method used for this study was probability sampling. It is based on the concept
of random selection a controlled procedure that assures each population element is given a known non-
zero chance of selection. Restricted sampling covers those forms of sampling in which the selection
process follows more complex rules.
Sampling technique:
The sampling technique used for this study is stratified random sampling. It is based on the
concept of dividing the population into subpopulations and then randomly sampling from each of these
strata. This method usually results in a smaller total sample size.
Sample unit:
The survey was conducted in TVS Srichakra Limited among employees in ten departments
namely Human Resource Department, Personnel Department, Accounts Department, Project
Department, Secretarial Department, Civil Department, IT Department, EDP Department, Marketing
Department and Utility Department. The respondents were selected strata wise (i.e) from the level of
Managers to the level of the executives.
Sample size:
The sample size used for this study is 52.
RESEARCH DESIGN:
The research design used for this study was descriptive research design. It includes surveys
and fact findings. Description of Phenomena associated with a subject population (the who, what,
when, where and how). It helps to discover and measure cause and effect relationships.
DATA COLLECTION:
The reliable data required for this study include primary and secondary data.
Sources of primary data:

A questionnaire was prepared and used for collecting data for the respondents (employees of
TVS Srichakra Limited).
The selected respondents were contacted in person and the objectives of the study were clearly
explained to them and their co-operation was ensured.
Sources of secondary data:

The secondary data were collected from the various books, magazines, websites, e-books and
e-journals.
Data Analysis:
The statistical tool used for analysis the collected data was chi-square test, Pearson chi-square
test, mode, standard deviation, one sample T-Test and percentage analysis. The corresponding chart
was draw for easy understanding.
447
LIMITATIONS OF THE STUDY:
The study is confined from the level of Managers to the level of the executives. Therefore, the
respondents opinion may not be the opinion of the population. So, before generalization , there is a
need to conduct an in-depth study covering all the departments.
FINDINGS, SUGGESTIONS AND CONCLUSION
65.38% of the respondents strongly agree the statement WLB enables people to work better,
34.6% of the respondents strongly agree with the statement WLB entirely employers, partly
individuals responsibility and 38.4% of the respondents neither agree nor disagree with the
statement WLB is entirely an employers responsibility.
77% of the respondents manage their work and life.
36.5% of the respondents were rarely spending time with friends due to work, 46.1% of the
respondents were often went to home on time, 53.8% of the respondents were sometimes take
care of their personal business, and 51.9# of the respondents were never Keep healthy and fit,
play sports other leisure activities due to work, 42.3% of the respondents were sometimes take
part in community activities or fulfill religious commitments due to work and 32.6% of the
respondents were often take care of family and spend time with them due to work.
51.9% of the respondents feel deadliness and schedule factor is making work life balance a
little harder, 53.8% of the respondents feel that the type of work is making work life balance
little harder, 55.7% of the respondents feel that there is no negative expectation/ attitude of the
supervisor towards them, 57.6% of the respondents feel that there is no negative
expectation/attitude of work males towards them, 50% of the respondents feel that taking
leave is normal and 53.8% of the respondents feel that there is no way of taking additional
work to home.
46.1% of the respondents feel there is no negative attitude of managers that hinder work and
family commitments, 57.6% of the respondents feel there is no negative attitude of colleagues
that hinder work and family commitments, 76.9% of the respondents feel there is no negative
attitude of family members that hinder work and family commitments.
36.5% of the respondents use music as their individual coping strategy to manage stress
48% of the respondents respond transportation as the work life balance provision provided in
the organization.
SUGGESTIONS
TVS Srichakra Limited could take the following suggestions which might help their
employees to balance their work and life. It is important to note that some work-life balance programs
help employees handle stress and otherwise cope more effectively while other programs help to reduce
the absolute stress levels by rebalancing work life.
Have one to one session in a month where employees can come out with their personal and
professional problems.
Give positive feedback in front of all the staff members for the excellent job done.
Employees can be rewarded either by giving monetary rewards or gift vouchers.
Regular health checkups should be conducted and concession can be given to certain limit for
him/her and family.
Movie tickets can be given where one can enjoy with their family on weekends.
Once in a6 months free holiday tour tickets can be given.
Employer can keep party and dinner for the staff members once in a month so that it makes
the bond stronger.
Marriage Anniversary / Birthday cards and gifts can be given to the employee. He / She
should be given permission both to take leave and spend quality time with his family on that
special day.
448
Should arrange staff picnics.
CONCLUSION
The management should look into the given methods to accelerate the implementation of a
very successful work-life strategy within organization to reduce stress conflict between work and
family roles, absenteeism and turnover of valued staff which lead to increase job satisfaction of the
employees. By this research work, the researcher has gained knowledge about the activities done in
various department, facilities, care and support needed by the employees.
BIBLIOGRAPHY
1. http://www.hku.hk/cegp
2. http://www.referenceforbusiness.com/management/Tr-Z/Work-Life-
Balance.html#ixzz17WpSrrnu
3. http://www.citehr.com/19843-information-work-lifebalance.html#ixzz16qNCDKVS
4. http://www.him@WorkLifeBalance .com, www.worklifebalance.ie
5. http://www.bia.ca/articles/AReportontheImportanceofWork-LifeBalance.htm
6. http://www.employersforwork-lifebalance.org.uk
7. Gregory Moorhead and Ricky W. Griffin, Organizational Behavior, (7th Edition), Biztanra., New
Delhi, 2005. P.238
8. http://www.dol.govt.nz/worklife/benefits/for-you.asp, www.employersforwork-lifebalance.org.uk
Delhi, 2005. P.226-232
Delhi, 2005. P.233.234
11. http:/www.tvsrubber.com/tvsgroup.asp
12. http:/www.tvstyres.com
13. http:/ers.dol.govt.n2
14. http:/www.citehr.com/20698-work-life-balance.html#ixzz1ASU8b5se
15. http://www.dol.govt.nz/worklife/flexible/act.asp
16. http://www.entemp.ie
449
ROLE OF GREEN HR INITIATIVES IN SUSTAINABLE DEVELOPMENT
Elizabeth George (MBA,MPhil,UGC-NET), Asst. Professor, Department of Management Studies,
Adi Shankara Institute of Engineering and Technology
Human resource is the most valued asset of any organization. Managing workforce in this
modern era is more complex as they are very different from previous generation. The success of any
organization depends on how much the organization invests in the development of its human resources.
With society becoming more environmentally conscious, and with growing concern over global
warming, businesses have started to incorporate green initiatives into their day-to -day work
environment. Human Resource Departments in organizations have also begun to integrate green
initiatives into their respective HR functions. Green HR is the initiative taken by the organization to
retain the employees and to improve the organizational effectiveness leading to sustainability. When
HR go green it is essential that all employees should be aware of how their roles will contribute to the
sustainability of the organization
Green HR
HR has plenty to contribute to the greening of an organization. Green HR is an
environmentally friendly initiatives that reduce an employee's carbon footprint. While HR managers
have to play a major role in this, management also have an equal responsibility in inculcating green
initiatives in HR Department. Green HR efforts focus on increasing efficiency within processes,
reducing and eliminating environmental waste, and refurbishing HR products, policies and procedures
leading to greater organizational efficiency and reduced costs and better employee engagement.
Green HR is about focusing on recruiting, managing, creating a more efficient workplace,

recalling, preserving, growing talent and finally retaining talents while eliminating workplace
inefficiencies. Many industries have adopted green initiatives for their employees. It includes flexible
work options like Telecommute, Flexible Work Hours, Compressed Work Weeks or Goal-oriented
Employment. .
Green HR is one which involves two essential elements: environmental-friendly HR practices

and the preservation of knowledge capital. For some organisations, green HR practices means reducing
the organizations carbon footprint by reducing paper use ,dropping avoidable travel and adjusting
processes for more efficient utilization of resources. Some other organizations, considers Green Hr as
a holistic approach which aims at attaining sustainability and considers recruiting candidates who
value a commitment to the environment, retain knowledge and recalling employees lost at the time of
recession
Green HR initiatives
For an organisation to practice green HR initiative a total change in the mind set of
employees and re-engineering of the entire system is inevitable. During the current down turn globally
companies have turned to green workforce not just to reduce cost but also to keep their employees
motivated. All the areas and processes of HR should be revisited. Once areas are identified where the
organization can be greener, the new strategies can be implemented.
Recruitment
Green recruitment refers to sharing of the companys constant commitment towards the cause
of environment with the candidates whom they are trying to hire. A detailed job description can also be
given to the employee to specify the number of environmental aspects.
Now a day when the applicants choose a company to work for, they enquire about the
environmental friendly initiatives much more than ten or fifteen years ago. Young talents like to work
in companies which give more importance to environmental responsibility. So green recruitment can
450
attract the most talented innovative employees. Some of the leading companies like Google, Vodafone
and traditional companies like General Electric Co. are practicing green recruitment.
Grievance handling
A grievance redressal cell can be formed to take up the matters related to environmental
issues. The employees can be encouraged to do internal whistle-blowing regarding environmental
breach. Employees especially those employees who deal with risky jobs can also be encouraged to raise
grievance related to safety related matters. Trade union members can also be encouraged in taking
environmental initiatives
Pay and Reward System

Rewards can be offered for teams which develop waste reduction practices. Negative
reinforcements like suspensions, and warnings can also be given to employees to make environmental
improvements., e.g. if employees did not handle hazardous waste properly negative punishments like
firing or criticism can be done . But this does not help the employee to improve his performance in
regard to environmental matters .So, it is better to give positive rewards to employees like positive
feedback or appreciation in front of other employees which may motivate the employee to take more
environmental initiatives
Green Information System and Green Audit

Green information systems can be developed to gain useful data on managerial environmental
performance and green audit to gain information and feedback on past and future environmental
performance of their firm.
Other HR Initiatives for sustainability

In all the HR activities there is a heavy usage of paper. By going green, organizations can do
away with their dependence on these papers and completely automate the entire activities from
applicant tracking to succession planning. Applicants can apply to an online career portal and
employees can fill out their new hire paperwork on a web-based on boarding portal, thus eliminating
the usage of thousands of sheets of paper. Electronic filing also lessen paper usage
Flexibility and job sharing are yet another initiative for sustainable development. For example,
a flexible working programme means staff can work from home for part or all of the week. This also
provides work/life balance, depending on parental responsibilities .It also reduces office space by
25%, so it is beneficial for both the employer and the employee. Ride Sharing or Car pooling can also
be another initiative
Avoiding plastics in the premises of the organisation can be implemented thus replacing the
thermocol or plastic cups and plates in canteens with disposable paper cups and plates .Soft Drinks can
also be avoided. Solar energy can be used wherever possible. Switching off the computers while not in
use can also save energy.
Travelling can be reduced by effective use of technology like video conferencing, online
training teleconferencing ,virtual interviews and telephonic interviews. HR can build cross-functional
teams to come up with new innovative environmental-friendly implementable ideas. The employees
can segregate waste in their work place and have a tie up with any agency which can recycle the waste.
Companies going for green initiative

When the organizations go green it not only contributes to environment but also improves
work life balance and reduce carbon emission. As per various researches ICT industry currently
accounts for about 2% of global emissions of carbon dioxide. But green initiatives can reduce carbon
emissions. Industries like IT services, Software services and many other sectors are going green now a
451
day thus reducing their operating cost and reducing carbon emission leading to protection of the
environment.
Wipro is committed to recycling. The company takes food that is wasted in its cafeterias and
converts it into paper pulp; the service provider then manufactures writing pads from this pulp. It also
uses the methane gas produced for lighting burners. Elimination of air travel helped Vodafone reduce
carbon emissions by over 5,500 tons annually. Mc Donald is involved in "greener" practices, including
environmentally friendly refrigeration and converting used oil into biodiesel fuel. Toyota has made a
public pledge that it would do business only with those concerns that are certified Green. The Tata
Group has gone Green and has made a list of third parties, vendors and suppliers whom it deals with
in the course of business without releasing toxic emissions that could harm the environment.
Oracle has undertaken a tree plantation drive in partnership with Eco Watch under Oracle's
Green Initiatives. These employees from Oracle Solution Services India (OSSI) are going to plant over
600 trees at the Eco Education Centre in Bengaluru.
HP India offers its employees almost all forms of flexible work options like part-time option,
flexible working hours. Procter & Gamble India had introduced flexible work options in 1999 and
initially offered flexi time and sabbatical leave. P&G was ranked the second best employer in India by
the Best Employers Survey in 2002. ICICI also adopted Green Workforce initiative by offering some
forms of flexible work options and allowing the employees, especially women employees to work part
time, as majority of ICICI's employees were women.
CONCLUSION
HR plays a major role in sustainable development of any organization. Green HR enables the
organization to meets the present needs without compromising the ability of future generations to meet
their needs. Green initiatives will always reap benefits in the longer run. Companies can save large
amount of money by taking on the green initiatives. When organizations practices Green HR initiatives
they are able to preserve knowledge capital and provide employees with a better work-life balance.
Green human resources could very well promote sustainable practices and also increases employee
awareness. By continuing to be environmentally friendly, not only will our environment be benefited
but the organization will also be more reputed and become globally competitive. The morale and
satisfaction of the employees will also improve, leading the organization to be more sustainable.
REFERENCE
Anthony, S. (1993) Environmental Training Needs Analysis, Training Officer,vol.29, no.9,
p.273.
Barry A Colbert; Elizabeth C Kurucz, Three Conceptions of Triple Bottom Line Business
Sustainability and the Role for HRM.. Human Resource Planning; 2007; Vol.30,No. 1,pp. 21
Charbel Jose Chiappetta Jabbou ,How green are HRM practices, organizational culture,
learning and teamwork? A Brazilian study, Industrial and Commercial Training , Vol. 43,
No. 2 2011, pp. 98-105, Emerald Group Publishing Limited, ISSN 0019-7858
Fernandez, E., Junquera, B. and Ordiz, M. (2003) Organizational culture and human
resources in the environmental issue, The International Journal of Human
ResourceManagement, 14.4: 634-656.
Nel Belia, How Green are your Human Capital Practices? determining the HR carbon
footprint of the organization, Human Capital Review, May 2010
452
HR CHALLENGES IN NEW MANAGEMENT PARADIGM: VIRTUAL
ORGANIZATION
R. Alamelu, AP, Fatima College, Madurai 18
INTRODUCTION
The arrival of the 21st Century demands a fundamental rethink, and the development of a
management paradigm that can withstand the pressure of rapid change in a borderless, connected and
wired world, relying more and more on virtual structures - a virtual management system. New
technologies have led to a new information, knowledge-based economy, in terms of which
organizations have become increasingly complex. The technologically induced emergence of a
"virtual" environment has resulted in the adoption of new organizational structures /and work practices,
and has created several management and leadership challenges for the traditional twentieth century
management paradigm.
In response, new organizational forms have emerged, including virtual enterprises (defined as
small, core organizations that outsource major business functions), imaginary corporations, dynamic
networks, and flexible work teams (Raghuram, Garud and Wiesenfeld, 1998). The emergence of these
so-called virtual companies, and the rise of outsourcing and telecommuting, will axiomatically lead to
the proliferation of freelance and temporary workers, while large corporations will become dominated
by ad hoc project teams and independent business units. All trends point to the devolution of large,
permanent corporations into flexible, temporary networks of individuals, connected by personal
computers and electronic networks, who join together to produce and sell goods and services, and who,
when the job is done, again become independent agents.
The Characteristics of Virtual Organizations are consisting of:

An open organizational system without an official entity: A virtual enterprise is not a new physical
entity. It does not have fixed internal organizational structure and command chain system. It neither has
its own capital structure, nor has any product brand names. It is an open organizational structure. It
builds a competitive value chain through the combination of external resources to reach business
capacity that none of the member corporations can achieve individually.
Flexibility and quick response: Collaboration focused on specific projects makes it easier to manage
various resources based on market demands. The value chain units in the network will be adjusted
dynamically according to market demands by increasing, decreasing, splitting, or merging actions. In
the individualized multiple facet consumerism market, this type of virtual organization is obviously
advantageous.
Simple and efficient structure: Because most business functions in the organization are achieved by
outsourcing and many operations are processed by electronic businesses, organizational structure can
be more leveled and higher efficiency.
Easier internal control and more difficult external control: Internal control is the controlling
capability of the organization to its internal resources. External control means controlling capability of
the organization to its external resources. The effective operation of the virtual organization is
depended on the extensive and close collaboration of the member companies. Because of the
challenges coming from moral reliability and reverse selection, the organization would be very
susceptible if the external resources of any member corporate are subject to problems like quality
problems, pricing problems, timely delivery problems, etc. The characteristics of virtual organizations
determined that the key of its success is the inter-linking collaboration of core competencies of the
corporate units. A virtual organization is dependent on technologies and experiences. However, people
are the entity who owns technologies and experiences.
453
Technologies of Virtual organisation
More importantly, such organizations are embracing new technologies and work practices are of:
Telecommuting: defined as professionals working remotely, not only at home, but while on the move,
in cars, hotels, branch offices, and any other off-site locations. Group teleconferences or tele-meetings:
used instead of on-site meetings.
Group tele-classes: used to conduct training over the telephone, rather than on-site. Just-in-time
training modules: these will be offered via website, e-mail, fax-on-demand, or by teleconference, in
order to provide immediate training and solutions for staff that face technical problems.
Project management software: enables team members to keep in touch with all aspects of a project.
Groupware software: defined as collaboration and tracking software - such as Lotus Notes - that
enables any member of a team to communicate directly with other members without physically having
to speak to them or to visit them (Leonard, 1997). These developments, of course, raise a number of
questions around the issue of management in this virtual landscape, especially around the management
of human resource issues such as productivity, job satisfaction, organizational commitment and
company identification. Other issues, such as skills, empowerment, motivation, relationships,
leadership, responsibilities, authority, accountability, status and power, all create problems. Therefore,
how to promote the knowledge capital of an organization through human resources management is the
key to improve the competitive advantages.
Because of the special virtual nature of the virtual enterprise, the human resources management faces
new problems:
Interface with Human Resource Management

The problem of lacking a same goal: Because virtual enterprise is an internet-style business, long
term collaboration is rare. The cooperation is usually a temporary alliance to quickly respond to market
demands or to secure business opportunities that can not be completed by one individual company.
Within this consortium, the success of the whole enterprise is controlled by the effort delivered by each
member company. However, the member businesses within a virtual organization usually do not
demonstrate trust and cooperation from all members as expected by the supporters of virtual
enterprises. The members pay more attention to their individual goals, not the intangible organizational
goals.
Communication problems
The business members in a virtual organization are managed in a leveled structure. The
commands are passed through effectively without much information loss. However, because multiple
companies are involved, the communication within the organization members is challenged by disperse
space and time.
Problems caused by lack of trust

The virtual organizations are usually short termed. The temporary nature may cause lack of
trust among employees. Employees do not feel the assurance of their membership to the organization.
Mayo George Elton pointed that employees need good inter-personal relationship, they need feel being
cared by the organization, the satisfactory feeling of being cared by the employer is very helpful to
improve work productivity. Lack of trust in virtual organizations may cause low motivation and low
productivity.
b. Supplemental organization incentives. After developing a fare performance evaluation system, the
virtual organization may use a bonus incentive system to reward employees with monetary and
honorary incentives if they demonstrate excellent performance. This incentive must be fair and
balanced among all member companies in order to prevent complaints from members believing they
have been treated unfairly.
454
Assist employee personal development

Besides maintaining its normal business operation, the virtual organization may develop an
affordable employee career development plan. The organization should assist its employees to expand
their knowledge and potentials, provide opportunities to fully utilize employee expertise, and help
employees plan realistic career development goals. Provide key employees with comfortable working
environment and personal development opportunities in order to increase positive motivation and
creativity of these employees.
CONCLUSION
Because of the characteristics of virtual organizations and technical employees, the human
resources management in a virtual organization differs from HR management of a traditional business.
Virtual organizations should develop a good learning environment, establish a learning business
culture, and help employee development by knowledge sharing and other measures. Human resources
management in a virtual enterprise also needs to emphasize and educate teamwork spirit. Effectively
combining teamwork management and personal development of technical employees, supporting
employee career development while maintaining business development momentum, developing an
environment that each employee can fully utilize his/her initiatives and personal values, and
maximizing all employees potentials and intelligence, are all beneficial to promote corporate
455
EMOTIONAL INTELLIGENCE AND EMPLOYMENT PRACTICES A TOOL
FORGROOMING EMPLOYEES
Dr.J.Senthil Vel Murugan, Faculty-PRIMS,Periyar University
S.Bala Murugan, Assistant professor, RVS Institute of management studies
INTRODUCTION
"More effective and important than ... legislation is our regard of one another's feelings at a
simple human level." Dalai Llama, Ethics for the New Millennium
What Is Emotional Intelligence?
Why do people get into accidents? Why do they violate company ethics policies? Why do they
ignore personnel rules? Why do they use illegal drugs? Why do they put self-interest ahead of
organizational values? Why do some people cause conflict while others are gifted at resolving it? Why
do some people engage in "riskier" behavior than others? In many cases, the answer to each of these
questions boils down to what has been labeled "emotional intelligence." This two-part article will
explore the latest research on the subject of emotional intelligence. This part examines the nature of the
emotional intelligence concept and then discusses its implications for the employment practices
liability field. "People see what they want to see." Red Barber
Emotional Intelligence in Action: An Illustrative Scenario

Susan is a customer service representative who believes that her boss, Jim, the director of
sales, is sexually harassing her. She complained to Marcy, a human resources manager, that she was
uncomfortable with Jim's use of vulgar language and with his propensity to touch her and other women.
Susan believes that Jim's conduct makes it difficult to communicate with him and the situation is
beginning to affect her productivity. She tried to make Jim aware of this fact, but his only reply was,
"Get over it." Marcy told Dave, the owner of the company, about the situation. Dave responded by
saying that he has known Jim for years and that he is simply "...old schoolhe doesn't mean anything
by it. Try not to take it so seriously."
Working with Emotional Intelligence

In his 1995 bestseller, Emotional Intelligence, Goldman argued quite convincingly that a
person's "emotional intelligence" (EI) or "emotional quotient" (EQ) is, in today's evolving right-brained
world, the single most important predicator of success. Subsequently, Goldman and his cohorts have
continued to do an incredible amount of research in this area. His recently published follow-up book,
working with Emotional Intelligence, focuses on how these factors affect success in the workplace.
Regardless of whether you call it character, emotional intelligence, emotional quotient, or apply some
other verbiage, looking at how we think about ourselves and the world around us and what we do with
those perceptions helps predict personal and professional success. The concept of emotional quotient
becomes ever more important as we shift from a manufacturing to a services economy.
The Importance of Emotional Intelligence

While preparing this article I collected numerous sources. Articles published in England,
Canada, India, and Norway indicates this concept of EQ has not remained confined within our shores.
Based on personal experience, it is clear to me that emotional intelligence has a far greater impact on a
person's personal and career success than does their IQ or particular skill set. Marcy, our human
resources officer in the above scenario, may be an expert on compliance with the company's sexual
harassment policy. But she may or may not be adopt at creating a dialogue with Dave or Jim. And, if
Marcy values job security over her role as compliance officer, she may be more inclined to placate
Dave and Jim instead of conducting a prompt and thorough investigation. Her attitude may send a
message to Susan that her complaint was ignored. Moreover, Jim may conclude that his conduct is
acceptable, and he may have license to retaliate against Marcy for her complaints. The next thing the
company may hear from Susanafter she quitsis in the form of a letter from her attorney demanding
hundreds of thousands of dollars in damages.
456
In Working with Emotional Intelligence, Goldman makes the point that the "emotional
intelligence" or culture of an organization starts at the top. Accordingly, you cannot consider risk
management to be a priority of the rank-and-file employee if it is does not occupy a similar priority in
the executive boardroom. Marcy cannot be expected to be focused on doing the "right thing" if she is
more concerned about Dave's relationship with his friend Jim.
Emotional Intelligence Profiles

What if we could develop an emotional intelligence profile of a harasser (or their victim), of
an unethical executive, of a warehouse thief, or a malingering claimant? There are certainly challenges
associated with such an inquiry.
First is obtaining permission from the person you wish to profile. That may be difficult, if not
impossible, especially in the event they were fired from your company for being a sexual harasser. On
the other hand, there is the potential for building a profile with input contributed by those who worked
in the presence of such a person. In fact, this may be of greater value than the individual's self-
awareness. Since the self-awareness of the wrongdoers is, by definition, flawed, what good does it do
to know what they think about themselves? Perhaps more important, we need to know what others
around them observed, how they felt, and whatif anythingthey did.
Specific Personal and Social Competencies

Goleman's emotional competency framework is effective in furthering this discussion. I
believe these factors also apply in the risk management and employment practices liability context.
They include the following.
Personal competencies:
Self-awareness (knowing one's internal states, presences, resources, and intuitions)
Self-regulation (managing one's internal states, impulses, and resources)
Motivation (emotional tendencies that guide or facilitate reaching goals)
Social competencies:
Empathy (awareness of others' feelings, needs, and concerns)
Social skills (adeptness at inducing "desirable responses")
Consider a high-quality customer service representative, for example. This person would display a high
level of self-control, conscientiousness, and empathy.
Personal Competencies are "Company-Specific"

Goleman indicates that the competencies we need to master will change as we grow into
different roles. For example, senior-level managers need a greater political awareness than do their
subordinates. In addition, Goleman observes that a person's competencies are also related to the
company's "emotional ecology." Depending on a company's vision, mission, core values, and goals, a
different blending of emotional competencies may be required. To use another example, a nurse
dealing primarily in pediatrics will need a different set of emotional skills than one specializing in
geriatrics. Moreover, such profiles may also be affected by whether the nurses work in a private or
public heath care setting.
The Importance of Feelings

Employment practices liability risk management has historically focused on the back-end of a
situation, namely, the point at which a claim is made. As lawyers, risk managers, and consultants, we
typically become involved only after a problem has surfaced. We are very analytical in both our
approach to preventing problems and in bringing them to closure. We want the facts and the figures
before we are ready to defend ourselves. And if our position fails, we will fight to maintain it, which
only raises the emotional and financial stakes. The truth is that we are not very interested in how others
feel. We are too busy worrying about how we feel.
457
Having represented a significant number of women in sexual harassment cases, I can tell you
that almost every one of them was offended by the fact that, although the company did conduct an
investigation, the company never once asked how they "felt." After reporting only the facts and not the
feelings, the women felt drained and manipulated. In their minds, these women thought, "You don't
care about me, you don't acknowledge or validate me, all you really care about is protecting yourself."
It is no surprise that even companies that conduct investigations with the best intentions find
themselves with an employee who is upset and waiting to quit or be fired.
Often, the only thing we need to feel better is validation. The opposite of validation is to be ignored:
i.e., told we shouldn't feel that way or are too sensitive, and unfairly judged or criticized. When
employees do not feel validated, a whole slew of bad things happen, including a breakdown in
communication, defensiveness, evasiveness, fear, and loss of productivity. Make no mistake about it:
negative emotions, just like positive ones, are contagious. The negative emotions of a former employee
are contagious. Negative emotions expressed between lawsuit participants and their counsel is
contagious. They spill over not only into our workplaces but also to our families and deep into our own
minds.
Emotional Intelligence and the Ability To Generate Win/Win Solutions

When it comes to the attorneys and adjusters who manage employment practices claims, their
emotional competency will be the single most important factor in determining their ability to generate
win/win solutions. Consider also the human resource manager and the investigator. Do they really
understand others, engage in active listening, and acknowledge and validate? Are they sympathetic to
the person's circumstances? Will they unite or will they create dissention among the defense team? Do
they have the ability to facilitate the plaintiff and their attorney in making reasonableas opposed to
unreasonabledemands? Or, will they upset the plaintiff to such an extent that he or she and their
attorney are determined to fightregardless of the possible outcome? Ideally, the company and its
representatives will be adept at shifting the plaintiff's focus away from blaming and justifying and
toward helping the plaintiff accept responsibilityat least to some degree.
CONCLUSION
Finally I would like to conclude that in India nearly 80 percent of workplace risks are
relationship failuresrather than the failure to have or properly implement policies and procedures. As
stated by Kevin M. Quinley, CPCU, ARM, in Claims magazine, "Good relations between employers
and employees are key to low or no losses. Be sure that employees feel comfortable in reporting or
discussing any problems and that managers and supervisors respond to any complaints in a positive and
caring manner."
The bottom line is that EQnot mastery of the legal technicalitiesis the most important
factor in determining whether, and to what extent, an organization will experience employee claims.
But, because it is a "soft" issue, risk management literature has virtually ignored the subject.
Nevertheless, since EQ is such a critical issue, this won't last long.
I note that very few employment practices claims appear to emanate from today's newer and
more challenging and exciting work environments. place people in an environment where they feel
good about themselves and they are much more likely to be focused on adding value and taking
responsibility. Such environments will have no room for abusive, discriminatory, or blameworthy
conduct.
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COACHING STRATEGIES TO BE ADAPTED BY ORGANIZATIONS FOR
DIFFERENT BEHAVIOUR STYLES OF AN INDIVIDUALS OPTIMAL
PERFORMANCE
Mrs. D.Vijayalakshmi, Assistant Professor, Department of Management, RVS College of Engg. &
Tech, Coimbatore
ABSTRACT
Coaching is increasingly recognized as a methodology for creating more effective
conversations, for assessing and reformulating values and goals and reaching solutions. Coaching is
also evolving as a natural form of leadership. Coaching aids staff retention and staff retention is a
function of good management and good leadership skills. Coaching is stretching the individual
making successful individuals to be better, moving them up to the next level of their potential.
It was once referred to as human resources management but today's buzz word is coaching.
Rather than just a change in terminology, successful business coaching focuses on employee behaviour
instead of a strict examination of results in order to improve performance in a team. This is an
important distinction because if it is done wrong, coaching can be more detrimental than effective.
Without fixing the source of a problem, it is unlikely that the organisation will truly benefit. The
benefits of our professional coaching include for examples like improved productivity and
organizational strength, Increased ability to identify realistic solutions and implement appropriate
action, Better attraction and retention of key staff, Improved leadership and work team performance,
Significant gains in personal confidence and goal achievement, Superior internal/external client
relationships, and of course, Enhanced bottom-line performance. The factors are explored and coaching
strategies to be adapted by organizations for different behaviour styles of an individuals optimal
performance
INTRODUCTION
Coaching is increasingly recognized as a methodology for creating more effective
conversations, for assessing and reformulating values and goals and reaching solutions. Coaching is
also evolving as a natural form of leadership. Coaching aids employee retention and employee
retention is a function of good management and good leadership skills. Coaching is stretching the
individual making successful individuals to be better, moving them up to the next level of their
potential.
ELEMENTS OF A GOOD COACHING SESSION

Establish a purpose - Having a clear purpose at the beginning of coaching session will enable
you to conduct focused and productive discussion
Establish ground rules - As with any meeting, you and the employee need to have a common
understanding of certain factors
The most important are time and roles
Keep focused - A few guidelines to keep focused
Avoid making noise anything that distracts from the atmosphere
Speak clearly - These tips will help you communicate more effectively:
Use the simplest, most common terms
Avoid the jargon ,Be specific
Use the Discuss one specific issue
known to explain the unknown - Define the issue and limit the discussion to something
manageable
Youll get other chances to discuss other concerns but only if you resolve this specific
concern right now
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Gather Good Information with your EARs
E explore by asking questions
A affirm to show youre listening
R reflect your understanding
S silence, listen some more
The benefits of our professional coaching include

Improved productivity and organizational strength
Increased ability to identify realistic solutions and implement appropriate action
Better attraction and retention of key staff
Improved leadership and work team performance
Significant gains in personal confidence and goal achievement
Superior internal/external client relationships, and of course
Enhanced bottom-line performance
COACHING STRATEGIES FOR DIFFERENT BEHAVIORAL STYLES

Dominance Style
They like to control their environment by overcoming opposition to accomplish their desired
results
They are direct, forceful, impatient, and can be extremely demanding
They enjoy being in charge and getting things done
When they are negatively motivated, they can be defiant
They dont like being told what to do
They are reluctant with tasks that involve dealing with lots of detail
They would quickly become bored with a routine task
Dominance Strategies
Be clear, direct, and to the point when you interact and communicate with them
Avoid being too personal or talking too much about non work items
Let them know what you expect from them. If you must direct them, provide choices that give
them the opportunity to make decisions
Accept their need for variety and change. When possible, provide new challenges, as well as
opportunities to direct the efforts of others
Influencing Style
They like to shape the environment by influencing or persuading others to see things their way
They dislike for handling complex details or working as lone rangers
They prefer to deal with people rather than things
They enjoy making a favorable impression, a good motivational environment, and viewing
people and environment optimistically
They will chat with you about anything on their minds
They motivate their people and love to generate enthusiasm
When negatively motivated, they can be indiscriminately impulsive
Influencing Strategies
Ask about things going on in their lives outside of work
Let them share with you their goals at work and elsewhere
Tie your objectives to their dreams and goals
Create democratic atmosphere and interaction with them
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Steadiness Style
They like to cooperate with others to carry out a task

They are team player and prefer dealing with things, one thing at a time
They are patient, reliable, loyal and resistant to sudden changes in their environment
They appreciate an orderly step-by-step approach
They tend to perform in a consistent, predictable manner and prefer a stable, harmonious work
environment
When they get demotivated they can become stubborn or stern, moods usually expressed in
the form of passive resistance
Steadiness Strategies
Provide specific direction and offer assurances when necessary
When implementing change, be sure to lay out a systematic, step-by-step procedure and draw
out their concerns and worries about the situation. They need to feel secure
Assure them that youve thought things through before initiating changes. Give them a plan to
deal with problem when they occur
Compliance Style
They are cautious and demands quality and accuracy
They appreciate opportunities for thorough, careful planning
They are critical thinkers who are sticklers for detail
They prefer to spend time analyzing a situation and like the steadiness, are slow to accept
sudden changes
They like following procedures and standards preferably their own
They respond favorably to logical, well-thought-out, planned options
When they are negatively motivated, they become cynical or overly critical
Compliance Strategies
Opportunities to demonstrate their expertise
Plenty of details
Enough time to prepare for meetings properly especially if they have an item on the agenda
to present
Situations where their systematic approach will contribute to long term success
CONCLUSION
Coaching helps an employees to develop competence , to correct unsatisfactory
performance, to diagnose performance problems, to foster productive working relationship and
Improve employee performance. No one wants to always be reminded of what they are doing wrong.
Positive comments help to motivate and encourage staff members to keep working until they get
everything right. Focusing on behaviours rather than results is an excellent way to promote positive
change in an organization. It will help identify ones own leadership style and range of flexibility,
predict the effectiveness of ones own leadership choices and identify the ability and willingness of
employees to accomplish goals and objectives.
REFERENCES
http://www.inspyr.com.au/coaching-training/coaching.asp
www.amazon.co.uk/Best-Practice-Performance-Coaching-Professionals/dp/0749450827
http://ezinearticles.com/?Coaching-Techniques-That-Encourage-Optimal-
Performance&id=3580134
Article Source: http://EzineArticles.com/3580134
http://www.learn4results.com.au/training-program-detail.php
461
http://www.explorehr.org/articles/HR_Powerpoint_Slides/Coaching_for_Optimal_Performanc
e.html
http://www.theexecutiveedge.net/what-we-do/organizational-effectiveness.aspx
http://www.regalconsult.com/services/coaching.html
http://www.citehr.com/33548-coaching-optimal-performance.html
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MAKING COUNSELLING EFFECTIVE IN EMPLOYEES CAREER
S.Chandra Sekar,II BCA, R.V.S College Of Arts And Science, Sullur.
ABSTRACT
The latest trend catching up in the corporate HR across the world is Employee Counselling at
Workplace .In the world of ever increasing complexity and the stress in the lives, especially the
workplace of the employees, employee counselling has emerged as the latest HR tool to attracted and
retain its best employees and also to increase the quality of the workforce. In todays fast paced
corporate world, there is virtually no organization free of stress or stress free employees .The
employees can be stressed, depressed, suffering from too much anxiety arising out of various
workplace related issues like managing deadlines, meetings targets, lack of time to fulfill personal and
family commitments ,or bereaved and disturbed due to some personal and family commitments, or
bereaved and due to some personal problems etc. This paper deals with maing counseling effective in
employees career and conidions for development.
Key words:employees, counseling , consellee etc..,
INTRODUCTION:
Counselling can be defined as the help provided by a manager to his subordinates in analyzing
Their performance and other job behaviors in order to increase their job effectiveness.Counselling is a
dyadic process. It is based on a relation between two persons a manager who is counselee.it differs
from training mainly in its intensity of dyadic relationship and its focus on the establishlity and
confidentiality.
OBJECTIVES OF COUNSELING:
Counseling aims at the development of the counselee. It involves the following
1.helping him to realize his potential as a manager.
2.helping him to understand himself-his strengths and his weaknesses.
MAKING COUNSELLING EFFECTIVE:

In performance counselling are development counseling formally organized by the
organization,the employee may not ask for counseling but his superior may organize counseling inter
views as an organization requirement.on such occansions,the employee may be forced into a
counseling situation.if counseling is given without having been sought,it is likely to be of limited
values.it may prove frustrating both to the counselor and to the employee.in a such situation,the
counselor would do well by forgetting about performance counseling and talk to the employee about is
lack of interest in growth .the employee is likely to open up if the counselor establishes an open
climate.if the employee has serious emotional block in dealing with his superior,there is no use
organizing a counseling interview.
CONCLUSION:
Good counseling sessions fail to produce effective results due to lack of follow up.follow ups
through informal exchanges go a long way in communicating interest in the employee.otherwise,he
may feel that the counseling is artificial and may lose in it eventually.
REFERENCES:
1. 1.Voluntary HIV-1 counseling and testing efficacy study group(2000).Efficacy of voluntary
HIV-1 counseling and testing in individuals and couples in Kenya,Tanzania and Trinidad:a
randomized trial. Lancet356,103-112.
2. 2.UNAIDS(2001)The impact of voluntary counseling and testing:Aglobal review of the
benefits and challenges .http//www.unaids.org
3. 3.udai pareek T.Venkateswara rao desingning and managing human resourcessecond edition
mohan Primlani for Oxford & IBH publishing Co.Pvt.Ltd
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RETENTION OF TALENT MANAGEMENT
Dr.B.ADALARASU MBA., M.Phil, PGDPMIR. HDSE,MISTE ,Ph.D.- Dean RVS Faculty of
Management
Mr.K.RAMESH MBA., DISM., (Ph.D) . Assistant Professor, RVS Faculty Of Management
INTRODUCTION
Talent management jk a professional term that gained popularity in the late 1990s. It refers tl
thm process lf developing nnd promotion nmw workers through ln boarding, developing nnd keeping
current workers nnd attracting highly capable workers nt lthmr companies tl come work flr olur
company. Talent management jn thjk context dlmk nlt refer tl thm management lf entertainers.
Companies thnt nrm occupied jn talent management (human capital management) nrm strategic nnd
deliberate jn hlw thmo source, attract, select, train, develop, promote, nnd mlpm employees from side to
side thm organization.
Matching the right person to the right job jk and recognized need in organizations. But one lf
thm toughest challenges jn collection lftmn overlooked jk matching thm rjght candidate tl hjk immediate
boss. What mnkmk thnt goal particularly tough jk whmn thm boss dlmk nlt hnpm a clue whnt kind lf
candidate wluld work well wjth hjm. Working wjth various tools, Tallent Management qnn design nnd
customize assessment exercises nnd materials. Talent Management nlkl recognize critical competencies
olur people wjll need; develop success predictors nnd consult wjth olu ln general recruiting strategies.
WhWt XY talent management?

Thm term talent management means different things tl altered people. Tl klmm jt jk nblut thm
management lf high-worth individuals lr thm talented whilst tl others jt jk nblut hlw talent jk
managed generally i.e. ln thm assumption thnt nll people hnpm talent whjqh khluld bm identified nnd
liberated. Thjk term jk usually associated wjth competency-based human resource management
practices. Talent management decisions nrm lftmn driven bo a set lf organizational core competencies
nk well nk position-specific competencies. Thm competency set mno include knowledge, skills,
experience, nnd personal traits. Talent management jk thm recruitment, development, promotion nnd
retention lf people, rlnnnmd nnd executed jn line wjth lur organizations current nnd future business
goals. Bmqnukm jt jk aimed nt building leadership strength jn depth, jt qrmntmk elasticity to meet fast
changing market conditions. A structured talent management process wjll methodically close the gap
between thm human capital nn organization currently hnk nnd thm leadership talent jt wjll eventually
need tl respond tl tomorrows business challenges.
Requirements of Talent Management:

1. Preliminary with the and a mind-our current and future business needs
2. What kind of talent dlmk thm business need?
3. What and whmrm nrm thm gaps?
4. Identifying high potentials
4.1 Evaluating current performance.
4.2 Identifying potentials
4.3 Crmntjng nn quickening pool
5. Assessing readiness for Leadership transitions
5.1 Individual Readiness
5.2 Organizational readiness or Talent Audit
6. Accelerating development
7. Focusing and driving performance
8 (Eight) Values for Success:
- Aqqurntm diagnosis jk the first step in effective development
- Ensure development jk tied to where our business jk going now and in the future.
- Development talent needs to represent a balance between fixing weaknesses and leveraging
strengths.
464
- Prioritize possible
- Effective development requires a blend of activities including mentoring, classroom learning,
coaching, job assignments, action learning etc.
- Dont underestimate the role of management support
- Crmntjng learning tension will maximize olsr return
- Developing others becomes a computable management performance objective.
Importance of talent management:
The most spectacular Macroeconomic effect on the labour market is the advancing age of
workforces. By 2025 the number of people aged 15-64 is projected to fall by seven percent in
Germany, nine percent in Italy and 14 percent in Japan. But it will also make a difference to China,
thanks to its one-child policy. And even in America, increase in population size has dropped from 13
percent to five percent in just 15 years.
Competition for young workers, those under 35, will make the task of attracting and retaining
them increasingly difficult. Maintaining the energy and commitment of workers between 35 and 54
will become imperative to success. A recent HBR article cites research that 71 percent of this band
employee is disengaged. One must ask if the talent of this group is being effectively leveraged or
wasted in most organisations. Losing the skills of older workers on retirement is no longer acceptable
practise in many industries and programmes to reengage retirees are becoming common place.
At a micro economic level, increases in the average standard of living, mean people have a choice as to
where they work and are demanding greater flexibility from employers. In the UK, The Work
Foundation (2005) reports that 80 percent of the 300,000 growth in the workforce between 2004 and
2010 will be women, many of whom will be seeking other than full-time work as a means of balancing
their work and family commitments. In the USA Families and Work Institute study found that only 43
percent of prime candidates for promotion wanted to move into jobs with greater responsibility.
A successful talent management structure builds a charming organization by:

o Connection corporate strategy with the quantity and quality of leadership required to
mtmqstm it.
o Driving leaders accountability for the cultural strategies that support business goals.
o Identifying those individuals with the highest leadership potential nqrlkk the
organization early in thmjr careers.
o Assessing high-potential talent against a holistic and future facing definition of
leadership
o Accelerating the development of high-potential talent and improving the quality of
executive leadership
o Enhancing the focus on growing better leaders at all levels from first line upwards
Types of Talents in Corporate Sectors:

1. Attracting Talent: Crmntjng Assessment nnd Selection Strategies nnd Processes, Matching thm Rjght
Candidate tl thm Boss. Attracting qualified talent jk thm critical first step jn thm talent management
cycle. Thm improving economy, retirement nnd lthmr factors nrm qrmntjng keener competition flr talent
thmkm days, mnkjng thjk critical step tougher thnn mpmr. Sl hlw dl olu gmt a leg up ln thm competition?
Recruitment - ensuring the right people are attracted to the organisation.
Retention - developing and implementing practices that reward and support employees.
Employee development - ensuring continuous informal and formal learning and development.
Leadership and "high potential employee" development - specific development programs for
existing and future leaders.
Performance management - particular processes that cultivate and support performance,
including feedback/measurement.
465
Workforce planning - planning for company and general changes, including the older labour
force and current/future skills shortages.
Culture - development of a positive, progressive and high performance "way of operating".
2. Retaining Talent: Sinking Turnover and Aligning Talent with Organization Goals
Wjth 75% of employees looking for new employment opportunities at any given time and five
million Baby Boomers expected to retire in the next few years, the war for talent jk back on. Companies
that develop successful retention strategies qnn win that war. Mlkt companies today would
acknowledge that thmjr human assets are thmjr mlkt jmrlrtnnt asset. But kjnqm companies qnnt own
employees the way thmo own factories or product, olur success or failure hinges on the quality and
duration of the relationships olu form with olur people: retaining talent.
3. Developing Talent:
Challenging Your People with Executive Coaching and Leadership Development Programs.
Employees cite career development nk one of two top job satisfiers, along with compensation. Your
employees want to be challenged and developed. If thmore not, thmo will become less productive or
perhaps even leave.
4. Vocation Development / Career Management

Thmkm programs are designed for professional and entry- to mid-level managers. CPI provides
assessment and feedback, rlnnnjng, support, coaching and lthmr tools, tailored to help olur people
realize thmjr career goals, aligned with organizational goals.
5. New Job Integration / Assimilation

The first one hundred days on a job are critical for new leaders. We assess and coach leaders to
gain effectiveness more quickly, avoiding common pitfalls of thmjr new roles. We provide feedback,
rlnnnjng and coaching, based on assessments.
6. Leadership Development
Our leadership development programs include a wide variety of leadership and management
skills for developing talent, including coaching, conflict management, dmqjkjln making, delegating,
mentoring, and motivating and performance management. ulur Companys needs and help
organizations implement and manage thmjr leadership development programs. We provide assessment
and feedback, action rlnnnjng, coaching and support to promote changes that align leadership and
organizational performance.
7. Transitioning Talent; Crmntjng Goodwill through Career Transition Programs

Put nk much thought into how olu transition employees out of the company nk olu do
attracting talent, and the return on investment jk usually a hnrrjmr workforce, separated employees who
are more contented, and a community that regards olu nk a glld citizen. The benefits of offering
exiting employees quality transition programs far outweigh the costs and risks of not providing them.
8. The Corporate Talent Challenge

Thjk research will help olu clearly understand why talent management jk not vukt a new name for
HR, but a business imperative with very different challenges in each industry.
9. The Business Drivers of Talent Management

It helps readers understand specifically how to tie talent management solutions to specific business
problems such nk the shortage of mid-level managers, rolling out new products, mergers and
acquisitions, and 8 lthmr business challenges.
466
Today's Top 10 Talent-Management Challenges
1. Attracting and retaining: Sufficient employees at all levels to meet the needs of organic and
inorganic growth. Companies are facing a talent crunch. For example: - Essar has grown from 20
thousand employees to a staggering 60 thousand in the past 3 years. Fifty-five percent of their
employees have less than two years of tenure.
2. Creating a value proposition that appeals to multiple generations. With four generations in
today's workplace, most companies are struggling to create an employee experience that appeals to
individuals with diverse needs, preferences and assumptions. The Gap, for example, has 153,000
people in its workforce. The stores have a high percentage of Gen Y employees, while corporate roles
and leadership ranks are primarily made up of Gen X'ers and Boomers. How does one create a
compelling employee value proposition for the organization?
3. Developing a robust leadership pipeline. I believe one of the biggest potential threats to many
corporations is a lack of a robust talent pool from which to select future leaders. This is in part a
numbers issuethe Gen X cohort is small and therefore, as I like to say, precious. But it's also an
interest issuemany members of Gen X are simply not particularly excited about being considered for
these roles. There was wide agreement among the panellists that a lack of individuals ready to move
into senior client manager and leadership roles is a critical challenge.
4. Rounding out the capabilities of hires that lack the breadth of necessary for global leadership.
It's relatively straight forward to identify and assess experts in specific functional or technical arenas,
but much more difficult to determine whether those individuals have the people skills, leadership
capabilities, business breadth, and global diversity sensibilities required for the nature of leadership
today. Increasingly, the challenge of developing these broader skill sets falls to the corporations.
5. Transferring key knowledge and relationships. The looming retirement of a significant portion of
the workforce challenges all companies, but particularly those who are dependent on the strength of
tacit knowledge, such as that embedded in customer relationships, a key to Mercer's business success.
6. Stemming the exodus of Gen X'ers from corporate life. A big threat in many firms today is the
exodus of mid-career talentpeople in whom the organization has invested heavily and in whom it has
pinned its hopes for future leadership. For example, developing talent management practices and
programs calibrated to leverage technology and create greater work/life balance has been a priority for
over recent years.
7. Redesigning talent management practices to attract and retain Gen Y's. The challenge of
calibrating talent management practices and programs to attract and engage our young entrants is
critically important to all firms and particularly so for firms that depend on a strong flow of top talent,
such professional service firms. All three panellists agreed that making the business infrastructure more
attractive to Gen Y is a high priority.
8. Creating a workplace that is open to Boomers in their "second careers." Age prejudice still
exists, but smart companies are looking for ways to incorporate the talents of Boomers and even older
workers in the workforce. In many cases, this requires rethinking roles and work relationships.
9. Overcoming a "norm" of short tenure and frequent movement. Some industries, such as
specialty retail, are known for having a very disposable view of talent. Companys intent on changing
that norm, such as The Gap, must address both external influences in the marketplace and an internal
mindset. The Gap believes retaining employees in roles for 3+ years will be a key to their future
earnings growth.
467
10. Enlisting executives who don't appreciate the challenge. Many talent executives complain that
business leaders still believe that people are lined up outside the door because of the power of the
company's brand. The challenge of enlisting the support of all executives for the transition from a talent
culture that has traditionally operated with a "buy" strategy to one that places more emphasis on "build"
is widely shared.
Computer Based Training:

Learning through based on computer and the provision online learning
Corporate Training:
Team Building, Leadership, Outbounds customized behavioural training
How qnn olu qrmntm an enriching workplace? It isnt easy and doesnt happen overnight. But
with klmm rlnnnjng, a lot of persistence and adept execution of seven key practices, any organization
qnn qrmntm an enriching workplace. India
CONCLUSION
The management should be innovative and proactive to win the war of talent. With the next-
generation predictive modelling systems, talent management and workforce planning can be
transformed from reactive administrative functions to proactive systems capable of accurately
forecasting talent demand right to the individual job. Attracting and nurturing talent has become the
single most dominant force. Today attracting brains is more difficult than foreign direct investment.
However, talent is what will make India enduringly competitive. Strategies are to be framed for
overcoming talent shortages. Obstacles to talent are to be identified and overcome. This can make
talent flourish if the enabling social and physical infrastructure is in place. In the words of Anil Ambani
Talent is footless and youth will seek a better quality of life where ever and whenever. A rightly
managed talent turns out to be a gold mine. Its inexhaustible and priceless. It will keep supplying
wealth and value to the organization. In turn, management needs to realize its worth, extract it, polish it
and utilize it. Dont hoard. Talent-spend it lavishly, like a millionaire flashing his luxuries, because
Talent is wealth.
Formal talent management practices have a relatively short history but rapid rise as a
profession. The Human Resource Planning Society (HRPS), now in its third decade of service to the
human resource and broader business executive community, has been committed to improving
organizational performance through the application of strategic human resource management practices,
including talent management.
468
NEED AND IMPORTANCE OF ENTREPRENEURSHIP

T.Gomathi, Assistant Professor/M.B.A Selvam college of Technology Namakkal,
1. INTRODUCTION
An entrepreneur is a person who has possession over a company, enterprise, or venture, and
assumes significant accountability for the inherent risks and the outcome. The term is from French and
was first defined by the Irish economist Richard Cantillon. Entrepreneur in English is a term applied to
the type of personality who is willing to take upon herself or himself a new venture or enterprise and
accepts full responsibility for the outcome. In common understanding it is taken as describing a
dynamic personality. An entrepreneur is someone who attempts to organize resources in new and more
valuable ways and accepts full responsibility for the outcome.
2. ENTREPRENEUR: AN OVERVIEW
An entrepreneur is an individual who efficiently and effectively combines the four factors of
production. Those factors are land (natural resources), labor (human input into production using
available resources), capital (any type of equipment used in production i.e. machinery) and Enterprise
(intelligence, knowledge, and creativity.)
Entrepreneurship is often difficult and tricky, as many new ventures fail. Entrepreneur is often
synonymous with founder. Most commonly, the term entrepreneur applies to someone who creates
value by offering a product or service. Entrepreneurs often have strong beliefs about a market
opportunity and organize their resources effectively to accomplish an outcome that changes existing
interactions.
Some observers see them as being willing to accept a high level of personal, professional or
financial risk to pursue that opportunity, but the emerging evidence indicates they are more passionate
experts than gamblers.
Business entrepreneurs are viewed as fundamentally important in the capitalistic society.

Some distinguish business entrepreneurs as either "political entrepreneurs" or "market entrepreneurs,"
while social entrepreneurs' principal objectives include the creation of a social and/or environmental
benefit.
Business entrepreneurs who adhere to Cultural Creative values are defined as innerpreneurs as
their principal objectives include personal development and social change.
2.1 ENTREPRENEURSHIP
Entrepreneurship is first and foremost a mind set. It is the art of finding profitable solutions to
problems. Every successful entrepreneur, every successful businessperson has been someone who's
been able to identify a problem and come up with a solution to it before somebody else did.
2.2 ENTREPRENEURS AS A LEADER

Scholar Robert. B. Reich considers leadership, management ability, and team-building as
essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in
his Essai sur la Nature du Commerce en Gnral (1755) and Jean-Baptiste Say (1803) in his Treatise on
Political Economy.
A more generally held theory is that entrepreneurs emerge from the population on demand,
from the combination of opportunities and people well-positioned to take advantage of them. An
entrepreneur may perceive that s/he is among the few to recognize or be able to solve a problem. In this
view, one studies on one side the distribution of information available to would-be entrepreneurs (see
469
Austrian School economics) and on the other, how environmental factors (access to capital,
competition, etc.) change the rate of a society's production of entrepreneurs.
A prominent theorist of the Austrian School in this regard is Joseph Schumpeter, who saw the
entrepreneur as innovators and popularized the uses of the phrase creative destruction to describe his
view of role of entrepreneurs in changing business norms.
2.3 ENTREPRENEURS AS AN INNOVATOR

An innovator or pioneer in a general sense is a person or an organization who is one of the
first to do something and often opens up a new area for others and achieves an innovation.
Innovation is a process of taking new ideas through to satisfied customers. It is the conversion of new
knowledge into new products and services.
Innovation is about creating value and increasing efficiency, and therefore growing your
business. It is a spark that keeps organizations and people moving ever onward and upward. "Without
innovation, new products, new services, and new ways of doing business would never emerge, and
most organizations would be forever stuck doing the same old things the same old way."
2.4 RENEWED EMPHASIS ON INNOVATION

Shift to the new knowledge-based economy, combined with a dramatic increase in highly
capable global competition, demands a renewed emphasis on innovation. Rapid changes in the
competitive environment create the new world of competition - "a fierce contest set in truly global
context, with more capable players, higher stakes, and vastly different rules of engagement from those
that we have enjoyed to date."3 This new economy is led by those who innovate - create, find and/or
combine knowledge into new products, services, and distribution methods - faster than their
competitors. Innovation is above all spurred by entrepreneurial action, aimed at creating value through
the application of knowledge.
2.4.1 DIFFERENT FORMS OF INNOVATION

Until recently innovation has been seen as the means to turn research results into
commercially successful products or services. Today, while research keeps playing its critical role as
a major contributor to innovation, many new forms of innovation have emerged. They include
system's approach to integration of new technologies and processes from other fields, new business
models and ways of doing business, and new ways of reaching and servicing customers.
Strategic Innovation is the creation of growth strategies, new product categories, services or
business models that change the game and generate significant new value for customers and the
corporation..
2.4.2 THE JAZZ OF INNOVATION

1. Providing strategic alignment
2. Define the innovation process publicly
3. Build cross functional expertise
4. Establish creative chaos environment
5. Challenge assumptions
6. Cross pollinate
7. Reward idea generation
8. Experiment
9. Allow freedom to fail
10. Measure the progress
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2.4.3 TECHNOLOGICAL INNOVATION ALONE IS NOT ENOUGH
Facing a tidal wave of global economic, technological and social change, you are not going to
survive in the new rapidly globalizing economy through technological innovation alone. If you are
going to withstand relentless global competition, you need to radically change the way of doing
business.
3. CONCLUSION
Until recently innovation has been seen principally as the means to turn research results into
commercially successful products, but not all research leads to innovation and not all innovation is
research-based. Innovation is systemic. It arises from complex interactions between many individuals,
organizations and their operating environment. Firms which are successful in realizing the full returns
from their technologies and innovations are able to match their technological developments with
complementary expertise in other areas of their business, such as manufacturing, distribution, human
resources, marketing, and customer service
REFERENCES
1. Baumol, W.J., Litan, R.E., Schramm, C.J. (2007). Good Capitalism, Bad Capitalism, and the
Economics of Growth and Prosperity. Yale University Press.
1. Binks, M. and Vale, P. (1990). Entrepreneurship and Economic Change. Maidenhead: McGraw-Hill.
2. Brouwer, M.T. (2002). 'Weber, Schumpeter and Knight on entrepreneurship and economic
development'. Journal of Evolutionary Economics, vol. 12(1-2), p. 83.
3. Cantillon, R. (1755). Essai sur la Nature du Commerce en Gnral
4. Casson, M. (2005). 'Entrepreneurship and the theory of the firm'. Journal of Economic Behavior &
Organization, 58 (2) , 327-348
5. Hebert, R.F. and Link, A.N. (1988). The Entrepreneur: Mainstream Views and Radical Critiques.
New York: Praeger, 2nd edition.
471
ETHNIC ENTREPRENEURSHIP AND MIGRATION

C.Luminia Vinodhini, Asst Professor -Dept of Commerce, Anna Adarsh College for women,
This article proposes that the term "ethnic entrepreneur" defined by the levels of personal
involvement of the entrepreneur in the ethnic community instead of reported ethnic grouping between
the most community-involved and least community-involved ethnic entrepreneurs.
Three terms are used most often in discussing entrepreneurs: ethnic entrepreneurs, migrant
entrepreneurs, and minority entrepreneurs. Ethnic and migrant entrepreneurs are the two most often co-
mingled, primarily due to the theoretical framework used that conceives immigrant entrepreneurs as
minority groups.
WHO IS AN ENTREPRENEUR?
Entrepreneur is a multi dimensional task defined differently by different authorities.
Centillion was the first to use the term entrepreneur.
MIGRANT AND ETHNIC ENTREPRENEUR:

Migrant entrepreneur exhibit determination to make their business dream a reality which is
fuelled by a passion for success. The pursuit of an entrepreneurial opportunity is an evolutionary
process in which migrants select out may steps along the way, make decisions to positively evaluate
opportunities, to pursue resources and to design the mechanism of exploitation.
SUCCESS STORIES OF ETHNIC ENTREPRENEURS:

Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born at Chorwad, Gujarat, into a
Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by
selling "bhajias" to pilgrims in Mount Girnar over the weekends.After doing his matriculation at the
age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk
in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.
Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian
Chambers of Commerce and Industry (FICCI). Sarath Babu shot into the limelight three years ago
when this IIM-Ahmedabad graduate from Chennais Madipakkam slum kicked campus offers and
ventured on his own to start a catering business. Today, this 31-year-old runs the Rs 7-crore Foodking
in Chennai, fulfilling the dreams of his mother who once sold idlis on the streets. Sarath Babu, whos
set up his own website, says he is fed up of corruption. His promise: incubation centres in all
educational institutions in the country besides food, healthcare, sanitation, electricity to poor by
abolishing red-tapism. I will help create 1,000 entrepreneurs in the first year, followed by another
5,000 in the next year, says the Foodking chief executive officer.
ETHNIC COMMUNITIES AND NETWORKS:

Virtually all ethnic entrepreneurs make extensive use of their social networks because these
are a central source of social capital. Such migration networks can be defined as sets of interpersonal
ties that link migrants, former migrants, and non-migrants in origin and destination areas through the
bonds of kinship, friendship, and shared community origin
FACTORS INFLUENCE ETHNIC ENTREPRENEUR

Factors of influence include market accessibility, capital accessibility, business focus or
business specialisation in manufacturing, trades and services as well as economic conditions, degree of
tolerance , support networks, business experience, educational background, and entrepreneurial
personal characteristics and initiatives.
472
VALUES
Values of entrepreneurs belonging to different national groupings have also been explored
using dimensions of culture: power distance, individualism, and uncertainty avoidance. Power distance
pertains to the value placed upon equal or unequal distribution of power within a group. Individualism
stands opposed to collectivism in terms of the relative priorities placed on the individual, the family, or
the social group. Uncertainty avoidance represents the group's tolerance for ambiguity, and is
particularly relevant to entrepreneurship.
A growing body of literature supports the argument that national culture influences a variety
of economic behaviors, including managerial behaviour , championing behaviour and entrepreneurship
. Another dimension of interest was materialism or value of work. Entrepreneurs in cultures like the
Chinese and Taiwanese have been found to believe that individuals "work to live." This attitude differs
from the western value by which one is expected to "live to work." In a number of different societies,
entrepreneurship is associated with high power distance, high individualism, and low uncertainty
avoidance. Thus entrepreneurs across nations and cultures were often found to hold values more similar
than dissimilar.
PERFORMANCE
Although information on the performance of ethnically-owned businesses is limited, they are
perceived as smaller and less likely to grow . Two explanations for this present themselves. First,
ethnic entrepreneurs tend to enter fragmented business sectors defined by low barriers to entry, intense
competition, low margins, and low liquidity. These businesses are survival mechanisms and therefore
not initially designed for significant levels of growth. Second, ethnic businesses, especially those
existing in an ethnic enclave, are perceived as serving largely a co-ethnic community and therefore
potentially bounded by a niche market demand. In addition, ethnic entrepreneurship presupposes
resource acquisition as dependent on the pattern of relationships within the community. These
relationships may enhance the availability of some types of resources but inhibit the availability of
other resources necessary for growth.
BUSINESS GOALS
Entrepreneurs are driven by both financial and non-financial goals such as profit, product
excellence, recognition and approval, growth, autonomy and flexible life style . Further, the importance
of goals varies across different groups--for example, female and male entrepreneurs . Given that ethnic
entrepreneurs' values have been found to be collectivist, risk-averse, non-hedonistic and hierarchical, it
is reasonable to argue that financial goals may not be paramount. The key stakeholders for businesses
run by entrepreneurs embedded in their ethnic community would be groups from within the ethnic
community. Hence, involved entrepreneurs will emphasize goals of contribution to their community
and family .Thus, an entrepreneur's business goals are likely to vary with the degree of involvement in
the ethnic community. Entrepreneurs with higher levels of involvement will attach lesser importance to
the financial success of their business, and higher importance to family and community goals.
BUSINESS STRATEGIES
Business strategies refer to the bundles to attract and retain customers and to deal with
competition. Past research identifies multiple types of strategies, and associates them with different
industries and environments, as well as business characteristics .Further, because goals impact
managerial behaviors including choice of strategies, and because highly involved entrepreneurs are
likely to stress non-financial goals, it can be expected that the strategies involved entrepreneurs choose
may not have profit as a top priority. Consequently, these entrepreneurs may not pursue strategies
aimed at creating a clear competitive advantage on features such as price, cost, and customer service,
quality, convenience of location, or innovative products. In sum, their firms may fail to establish a
discernible competitive strategy. Therefore, Business strategies are likely to vary with degrees of
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community involvement. Entrepreneurs with higher levels of involvement are less likely to pursue
strategies that create a clear competitive advantage.
NEIGHBORHOOD REVITALIZATION:
The migrant entrepreneurs encounter contribute to the economy and quality of life of the
neighbourhoods, they serve in a number of ways.
Reviving commerce and investment in areas that had declined.

Providing needed products and services.
Addressing the particular needs of distinctive ethnic niches.
Expanding beyond those niches
Incubating new businesses and, in some instances, mentoring new ethnic entrepreneurs.
Attracting new customers.
The impact of migrant entrepreneurs, therefore, is a positive one. They provide needed goods
and services to existing residents and attract new customers adding to the economic life of the
neighbourhood. They enhance the physical well-being and appearance of the areas in which they
operate and, in addition, help make them safer. Although many of the businesses are small operations,
they provide some jobs and, as the size and number of businesses grow, those opportunities will
increase. Many of the entrepreneurs do not sit still. They look to expand, branch-out and diversify. All
in all, the migrant businesses have proven to be engines of change that contribute to a feeling of
stability.
PROBLEMS
Cultural Impact
Scarcity of Inputs:
Uneven Development Programmes:
Operational Problems:
Conclusion:
Instead of queuing for jobs with the locals, they create jobs for themselves or even employ
other people as well. The majority of migrants in developed nations come from the developing
countries and their numbers are increasing steadily over time. At first, these migrants were sometimes
suspected of taking jobs from the natives, but the actual situation was that they were creating jobs for
the natives.
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QUALITIES OF MODERN ENTREPRENEURSHIP

Ms.S.Jagadeeswari, Assistant Professor, Department of Management studies &
Ms.D.Durga Assistant Professor,GRT Group of Institutions,
BKR College of Engineering & Technology, Tiruttani, Thiruvallur Dt.
Abstract
Entrepreneurs plays pivotal role in economic development particularly in Small Scale Units.
Entrepreneur is an initiative person who owns business or industry for makes a profit. Innovation is an
indispensable function of an entrepreneur. He is an organizer and manages all the activities with his
own ideas. Entrepreneurial education is important to stimulate entrepreneurs for improving their
quality. In fact, quality of entrepreneurship differs from one entrepreneur to another. The primary aim
of entrepreneur is to enhance the profit of the organization and to introduce new ideas and techniques
in the business world. According to social Historians Society will not tolerate entrepreneurs if they
object to innovations and novelties. Entrepreneur must have an additional personality, traits and
managerial abilities. These are the primary skill of an entrepreneur. Financial skill plays secondary role
in entrepreneurship.
Success of Industrialization = Performance of
Entrepreneurs + Quality of Entrepreneurs
Entrepreneurial education plays indispensable role in modern entrepreneurs. In current circumstances,
Entrepreneurial Development Programmes must train youth entrepreneurs and this will be helpful to
become modern entrepreneurs in future.
Modern Entrepreneur = Quality + Ability
Objectives of This Paper:
To analyze the role of Modern Entrepreneurs in India.

To Examine the qualities of Modern Entrepreneurs
To find out the problems faced by the entrepreneurs.
To enumerate the importance of entrepreneurship concept.
Introduction:
Entrepreneurship is a hot topic in social, leadership, and business circles. In the present
scenario entrepreneurship plays pivotal role in economic development. Entrepreneur is derived from a
French word which means to undertake. There are different views in entrepreneurship. Entrepreneur is
viewed as risk bearer, innovator and organizer. Entrepreneurs are risk-takers who trust their hunches
and act on them. Taking risks can be small first steps, like placing your first ad in a mail-order
publication. Entrepreneurs are usually honorable people who do business based on a handshake or a
promise. They tend to form strong associations with others who share this work ethic. Entrepreneurs do
set aside time for leisure activities and family. Their principal form of relaxation is their work, but they
do realize the importance of downtime and spend time with their family. Entrepreneurs compete with
themselves and believe that success or failure lies within their personal control or influence. They do
not see non-successes as failures but as learning experiences.
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Qualities of Modern Entrepreneur:

A modern entrepreneur should be ready to take calculated risk if he or she wants to succeed.
Sometimes in business you will need to trust your gut feelings and walk on water. However you will
need to distinguish between foolishness and calculated risk. Make sure that you do your homework and
ensure that your business plan is feasible before getting started. This may prevent you from having
some unpleasant surprise in the future. Business is all about dealing with people and you will need to
be good at communicating if you want to succeed. Whether it is with your customers, suppliers or
employees it is important that you learn how to communicate in an effective way to make sure that
your business is run as smoothly as possible.
Modern Entrepreneurs = Quality + Ability
Challenges of Modern Entrepreneur:

Today's successful business leader is decisive, insightful and constantly
challenging company conventions to keep ideas flowing, says management consultant Mark Stevens,
author of Your Management Sucks. This Enlightened Warrior is the model of the 21st century leader.
Enlightened, Stevens says, in the sense that a modern leader identifies opportunities before the
competition, taking in information from all sides to spot possible new directions. The warrior side
symbolizes a passion for achieving a goal and also a willingness to go on the attack--against the
competition, and against weaknesses in yourself and the organization."You need to wage constructive
war continuously," Stevens says. "It's not just firing people who aren't doing the job, but [also] saying,
'What are we not doing right?' and then acting on it. It's a war on complacency."Several new factors in
the current business environment demand this kind of creative thinking, leadership experts say. One is
the increasingly rapid pace of technological change, which opens up new possibilities for nearly every
business. Two big changes are people-focused: the growing diversity of the nation's work force and the
anticipated worker shortages as baby boomers retire. Coping with these trends will take some
stretching for many CEOs. Here's a digest of the key traits that are crucial in our changing workplace.
Entrepreneur must have an additional personality, traits and managerial abilities. These are the primary
skill of an entrepreneur. Financial skill plays secondary role in entrepreneurship. Entrepreneurial
activities are based on physical and financial facilities. These facilities are gigantic role in development
of entrepreneurship.
Success of Industrialization = Performance of Entrepreneurs + Quality of Entrepreneurs
Adaptability of Modern Entrepreneurs:

If you could have only one skill in your toolkit, this is the one you need right now, says Marty
Linsky, co-founder of consulting firm Cambridge Leadership Associates in Cambridge, Massachusetts.
With the marketplace changing practically overnight, CEOs need to be ready to learn fast and shift on
the fly."The whole idea that change is the norm rather than the exception is not a tweak, but a profound
change in your job as a CEO," Linsky says. "Your job now is to help the organization develop the
capacity to adapt, rather than stake out a vision and drive toward that." Secret for Successful
Entrepreneur:
1. Disciplined
2. Confidence
3. Open Minded
4. Self Starter
5. Competitive
6. Creativity
7. Determination
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8. Strong people skills

9. Strong work ethic
10. Passion
The Future of Entrepreneurship:

Both the Central Government and various State Governments are taking increased interest in
promoting the growth of entrepreneurship. Individuals are being encouraged to form new businesses
and are being provided such government support as tax incentives, buildings, roads, and a
communication system to facilitate this creation process. The encouragement by the central and state
governments should continue in future as more lawmakers are realizing that new enterprises create jobs
and increase the economic output of the region. Every state government should develop its own
innovative industrial strategies for fostering entrepreneurial activity and timely development of the
technology of the area. The states should have their own state-sponsored venture funds, where a
percentage of the funds has to invested in the ventures in the states.Societys support of
entrepreneurship should also continue. This support is critical in providing both motivation and public
support. A major factor in the development of this societal approval is the media. The media should
play a powerful and constructive role by reporting on the general entrepreneurial spirit in the country
highlighting specific success cases of this spirit in operation. Finally, large companies should show an
interest in their special form of entrepreneurship-intrapreneurship in the future. These companies will
be increasingly interested in capitalizing on their Research & Development in the hyper competitive
business environment today.
Conclusion: The definition of entrepreneurship has evolved over time as the worlds economic
structure has changed and become more complex. Risk taking, innovation, and creation of wealth are
the criteria that have been developed as the study of new business creations has evolved. The decision
to start an entrepreneurial venture consists of several sequential steps (1) the decision to leave a present
career or lifestyle. (2) The decision that an entrepreneurial venture is desirable; and (3) the decision that
both external and internal factors make new venture creation possible.
There are both pushing and pulling influences active in the decision to leave a present career: the
push of job dissatisfaction or even layoff, and the pull toward entrepreneurship of seeing an
unfilled need in the market place. The desirability of starting ones own company is strongly influenced
by culture, sub-culture, family, teachers, and peers. Any of these influences can function as a source of
encouragement for entrepreneurship, with support ranging from government support that favour
business to strong personal role models of family or friends, Beyond the stage of seeing
entrepreneurship as a a good idea, the potential entrepreneur must possess or acquire the necessary
education, management skills, and financial resources for launching the venture. The study of
entrepreneurship has relevance today, not only because it helps entrepreneurs better fulfill their
personal needs but because of the economic contribution of the new ventures. More than increasing
national income by creating new jobs, entrepreneurship acts as a positive force in economic growth by
serving as the bridge between innovation and market place. Although government gives great support
to basic and applied research, it has to had great success in translating the technological innovations to
products or services. Although intrapreneurship offers a promise of marriage of those research
capabilities and business skills that one expects from a large corporation, the results have not been
spectacular.
References:
1. Entrepreneur Development-New Venture Creation; By Satish Taneja & S.L.Gupta
2. Lectures on Entrepreneurship Development By Dr.B.M. Kacholia of Narsee Monjee Insitute
of Management Studies, Mumbai
3. Entrepreneurship-ICFAI Publication
477
MICROFINANCE AND WOMEN ENTREPRENEURSHIP

Dr. G. Santhiyavalli, Associate professor & M. Esther Jansi, Lecturer
Department of Commerce, Avinashilingam Institute for Home Science
and Higher Education for Women
INTRODUCTION
Poverty and unemployment are the twin causes affecting every country to which India is no
exception. Poverty is often the consequence of unemployment and being gender - related, leads to
feminization of poverty. In order to improve the socio-economic development of the country the
Government introduced various poverty alleviation programmes, but unfortunately these measures
have not really reached the needy beneficiaries particularly to the rural poor women. Currently ,
microfinance has become the endorsed solution to poverty alleviation and unemployment . Over
the past few years microfinance has been advocated internationally as the formal route to
offering opportunities for livelihoods and pulling the poor out of poverty traps .
The Indian Economy has recently witnessed an increase in entrepreneurship among

women because of microfinance. Microfinance is the provision of thrift , credit and other
financial services and products of very small amounts to the poor in rural , semi-urban or urban
areas enabling them to raise their income levels and improve living standards(Reserve Bank of
India) ). Micro credit programmes are extending small loans to poor people for self-employment
projects that generate income, allowing them to care for themselves and their families (Micro Credit
Summit 1997).
Statement of the problem:

There is a considerable section of the formal banking sector and other credit systems which
have failed to target all the poor under their programmes. . The prime need of the hour is to ensure
that the poor live dignity. In order to remove the unemployment and poverty , micro finance acts as
catalyst in the lives of the poor . Micro finance ensures that credit facilities available to the poor
at their door steps in a simple and flexible manner .
Objectives of the study

Following were the objectives of the study
To study the socio-economic profile of the selected women entrepreneurs of Self-help Groups.
To assess the role played by microfinance in strengthening the Self-Help Groups and thereby
enhancing empowerment of their members.
To evaluate the performance of selected Self-Help Group women entrepreneurs and to identify
the factors which contribute to their successful performance and sustainability.
Methodology
The study mainly deals to evaluate the performance of selected Self-Help Group women
entrepreneurs and to identify the factors which contribute to their successful performance. The study
further finds out the problems, if any, faced by the women entrepreneurs of Self-Help Group, so that
appropriate measures can be suggested to overcome the problems. The required data collected through
a structured interview schedule administered on a combination of simple random and purposive sample
of 300 women entrepreneurs of Self-help Group of Ganapathy only .In order to achieve the objectives
the following tools were applied - Percentage Analysis, Ranking technique and SWOT Analysis.
Limitations of the Study

The present study is a micro study, covering only the selected women entrepreneurs of Self-Help
Groups of Ganapathy.
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The study was made on the basis of personal interview method. The possibility of data bias
exists.
The study is based on the opinion and views of selected women entrepreneurs of Self-Help
Group of Ganapathy only. No generalization could be possible based on this study.
Results and Discussions

Microfinance and Women Entrepreneurship- the study was undertaken to understand the
performance of selected Self-Help Groups and to identify the factors which contribute to their
successful performance. The economic returns from the micro enterprises, the problems faced by the
entrepreneurs were analysed and interpreted under the following tables.
Table 1 Socio-economic profile of the women entrepreneurs of Self-Help Groups

Number of respondents
Factors
Numbers (300) Percentage (%)
1 Age
Below 20 years 17 5.67
21-30 years 68 22.67
31-40 years 90 30.00
41-50 years 82 27.33
51 years and above 43 14.33
2 Marital Status
Married 281 93.67
Unmarried 19 6.33
3 Nature of Family
Nuclear 238 79.33
Joint 62 10.67
4 No. of Members in the family
Upto 3 members 48 46
4 members 132 44
5 members 64 21.33
6 members and above 56 18.67
5 Educational Qualification
Illiterate 22 7.33
Upto XII Standard 243 81.00
Diploma 26 8.67
Graduate 9 3.00
6 Community
Other Caste 71 23.66
Backward Caste 171 57.00
Scheduled Caste 32 10.7
Scheduled Tribes 26 8.67
7 Status of respondents before joining the Self-
Help Group 15 5.0
Student 142 47.33
Housewife 78 26.0
Employed 65 21.67
Not employed
Source: Survey Data
Table1 reveals that 30 percent of the respondents belong to the age group of 31-40 years, 93.67
percent of the respondents are married women, 79.33 percent of the respondents are from
nuclear family and 47.33 percent of the respondents have a family of 4 members. 81 percent of
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the respondents completed their studies up to XII Standard, 57 percent of the respondents belong
to backward caste and 47.33 percent of the respondents were only housewives before joining the
Self-Help Group.
Table 2 Economic Status of the Women Entrepreneurs of Self-Help Groups
S. Number of respondents
Factors
No. Number (300) Percentage (%)
1 Number of earning members in the family
One 43 14.33
Two 174 58.00
Three 65 21.67
Four 18 6.00
2 Monthly Income of the family before joining the
Self-Help Group
Upto Rs. 2,500 74 24.67
Rs. 2,501 Rs. 5,000 113 47.67
Rs. 5,001 Rs. 7,500 83 21.00
Rs. 7,500 and above 30 6.66
3 Monthly Income of the family after joining the Self-
Help Group
Upto Rs. 2,500 35 11.67
Rs. 2,501 Rs. 5,000 79 26.33
Rs. 5,001 Rs. 7,500 136 45.33
50 16.67
Rs. 7,500 and above
4 Respondents share in the households total income
Up to 10%
11 % - 25% 20 6.67
26% - 50% 66 22.00
51% - 100% 169 56.33
45 15.00
5 Type of Residence
Own house 119 39.67
Rented house 181 60.33
6 Encouragement from Family members
Received encouragement 296 98.7
No encouragement 4 1.3
Source: Survey Data
Table 2 reveals that 58 percent of the selected families have at least two earning members.
Before joining the Self-Help Group, 47.67 percent of the respondents family income ranged
from Rs. 2501-Rs. 5000. But, after joining the Self-Help Group, it was noted that the income
level was substantially increased to Rs. 5001-Rs. 7500. The contribution of 56.33 percent of the
respondents spent to the extent of 26 percent to 50 percent of income towards their household
expenses. Majority of the respondents 60.33 percent are tenants. 99 percent of the family
members of the respondents supported their Self-Help Group activities.
480
Table 3 TYPES OF INCOME GENERATING ACTIVITIES BY THE

SELF-HELP GROUPS
Number of groups
S. No. Types of Income Generating Activities
Number Percentage
1 Dairy Farming 1 3.33
2 Manufacturing 3 10.00
3 Trading 7 23.33
4 Cottage Industries 9 30.00
5 Catering Services 5 16.67
6 Handicrafts 4 13.34
7 Running a Beauty Parlour 1 3.33
TOTAL 30 100
Source: Survey Data
Table 3 shows that 30 percent of the Self-Help Groups are engaged in cottage industries.
23.33 percent of the Self-Help Groups are involved in trading activities. 16.67 percent of the Self-Help
Groups are doing catering services. One of the Self-Help Groups is involved in dairy farming (3.33
percent) and one of them is running a beauty parlour (3.33 percent). The Self-Help Groups involved in
cottage industries, produce masala powders, pickles, papads, bakery items, candles, readymade
garments and mushroom cultivation, etc. The Self-Help Groups also involved in trading activities such
as provision stores, textile shop, fancy stores, petty shops, tea shop, fruit stalls and vegetable shops.
Table 4 Amount of Capital invested by Women Entrepreneurs Self-Help Groups

The income generating activities requires capital investment by the women entrepreneurs Self-
Help Group. Table 4 shows the amount of capital invested by Self-Help Groups.
Table 4 Amount of capital invested by the women entrepreneurs of self-help groups

Number of groups
Amount of Capital
Numbers Percentage
Upto Rs. 10,000 14 46.67

Rs. 10,001 Rs. 50,000 7 23.33
Rs. 50,001 Rs. 1,00,000 6 20.00
Rs. 1,00,001 Rs. 2,00,000 1 3.33
Rs. 2,00,001 Rs. 3,00,000 1 3.33
Rs. 3,00,001 and above 1 3.33
TOTAL 30 100
Source: Survey Data
From the Table 4 it is found that 46.67 percent of the Self-Help Groups invested upto Rs.
10,000 to start their income generating activities. 23.33 percent of Self-Help Groups invested Rs.
10,001 to Rs. 50,000. 20 percent of the Self-Help Groups invested Rs. 50,001 to Rs. 1,00,000. 10
percent of the Self-Help Groups investment ranges between Rs. 1, 00,001 to Rs. 3,00,001 and above.
The amount of capital varies depending upon the nature of income generating activities.
481
Table 5 Profits earned by the Women Entrepreneurs of Self-Help Groups

Though performance can be measured through various angles, profit is an important measure
indicating the viability of an organisation. Table 5 shows the amount of profits earned by the Self-Help
Group enterprises per month.
Table 5 Profitability of Micro Enterprises of Self-Help Groups

Number of groups
Amount of Profit per month
Numbers Percentage
Up to Rs. 10,000 12 40.00

Rs. 10,001 Rs. 20,000 13 43.34
Rs. 20,001 Rs. 30,000 4 13.33
Rs. 30,001 and above 1 3.33
TOTAL 30 100
Source: Survey Data
Profit is the driving force motivating the members to work harder. It is necessary for
sustenance as well as growth. It could be understood from the Table 5 that all the selected Self-Help
Groups were found to be running profitably. 43.34 percent of the enterprises earned profit of Rs.
10,001 to Rs. 20,000 per month. 40 percent of the enterprises earned profit up to Rs. 10,000 per
month. 13.33 percent of the enterprises earned profit of Rs. 20,001 to Rs. 30,000 per month. Only
3.33 percent of the enterprises earned a profit of Rs. 30,001 and above per month.
Table 6 Problems faced by the Women Entrepreneurs of Self-help groups
Mean Score Normal Distribution

Problems faced Rank
Value Value
Lack of adequate funds 3.83 II 63

Lack of technology 3.21 V 37
Inability to reduce the cost 3.67 IV 46
More competition 3.84 I 77
High transport cost 2.79 VI 23
Lack of advertisement 3.73 III 54
Source: Survey Data
From the Table 6, it is found that majority of the respondents were unable to meet the
competition from medium and large enterprises. Other problems faced by them includes lack of
adequate funds, lack of advertisement inability to reduce their cost, lack of technology and high
transport cost in running their micro enterprises. The problems in proportion of selected Self-Help
Groups were reported to be mainly related with entrepreneurship development, skill upgradation,
technology transfer, marketing linkage, etc. Most of the entrepreneurial activities of the Self-Help
Groups are limited to small organisations. Various problems arise because of their size being small.
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SWOT ANALYSIS:
SWOT Analysis helps to discover new opportunities, manage and eliminate threats. It is a
powerful technique for an organization to understand its strengths, to identify its weaknesses and look
for opportunities and threats. An effort was made to evaluate the women entrepreneurs of Self-Help
Groups using SWOT analysis based on the results of the current study.
Strength:
Self-Help Groups help in generating employment opportunities to the women members.
Self-Help Groups develop group activity and leadership qualities.
Self-Help Groups develop self-confidence in the members
Weakness:
Unethical practices by some members of Self-Help Groups. Utilization of funds for personal
purpose.
Lack of marketing skills and opportunities.
High pricing of products because of business being small.
No plans for development of business in future.
Opportunities:
To develop group dynamics, building leadership quality, to realize their potential and self-
belief.
To promote self-employment activities and thereby improving their economic position
Development of managerial, technical and marketing skills of the members of Self-Help
Groups through participation in appropriate training programmes.
Threats:
Self-Help Groups have to face high competition from medium and large scale industries.
Group conflicts among members led to discontinuance of business reported by the leaders of
selected Self-Help Groups.
No proper linkage with marketing agencies reported by the members of selected Self-Help
Groups.
CONCLUSION
Micro credit is emerging as a powerful instrument for poverty alleviation and unemployment.
Micro finance in India grows at tremendous speed. Micro enterprises initiated by Self Help Groups are
found to be commercially and socially viable. The study proved that the women have tremendous
energy to take up self-employment programme to generate income when they are given the right
opportunities. The study revealed that there is a drastic change in the economic status of the women
resulting in change in their social status also. The members have abundant self-confidence and self
esteem through Self-Help Groups. Self-employment is a must for the socio-economic upliftment of
women. The study shows that the Self Help Groups are the effective instrument for women
empowerment.
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GROWING COMPANIES AND ENTREPRENEURSHIP

Researching the Interface between learning and the Entrepreneurial context.
G.Jayanthi, Research Scholar, Karunya University, Coimbatore-641 114
ABSTRACT
Once a business is running, simultaneously the treat of loosing the entrepreneurial spirit is
occurring. This study presents a first attempt to bring together insights relating to different types of
knowledge and transfer required to develop their own companies. Especially the following research
question can be addressed further. How can knowledge be transferred and exploited in
performance of entrepreneurs own firms. The entrepreneurs proactiveness in learning, motivation
expansion of their own business makes them to go for cross border activities. This paper tries to
describe the types of knowledge, experience and market related information and tacit knowledge
requirements of an entrepreneur to become successful in the current day business. Effective
Entrepreneurs are exceptional learners. They learn from everything. They learn from suppliers,
customers, employees and from other entrepreneurs. They learn from their own experience and by
doing. They learn from what works and especially what doesnt work. The interrelationship between
learning and entrepreneurial context in growing concern are viewed in this paper.
Author Key Words : Entrepreneurship, Organisational learning, Innovation

I. Research methodology
This paper is a descriptive study based on the previous researches made on the requirement of
knowledge in Entrepreneurs life to run their own business. The paper is based on theoretical
framework and conceptual developments which can lead to further empirical analysis.
II. Purpose of the Study :

To become successful in international markets, the Entrepreneur/ owner of the firm should be
alert in updating his foreign market knowledge, international operations, knowledge on economic and
political stability of countries concerned, the entrepreneurial-technological alertness and learning and
continuous evaluation etc. A detailed descriptive study is presented for knowing the
transformation and exploitation of knowledge of entrepreneurs will create them successful
entrepreneurs in their field of business.
III. Review of Literature

In international business review, Kent Eriksson and Sylvie Chetty had written in an article the
effect of experience and absorptive capacity on foreign market knowledge, learning about foreign
markets and absorptive capacity on foreign market knowledge , learning about foreign markets often
occurs through collaboration with other firms who have this knowledge. They have concentrated on
the absorptive capacity and the usage of firms ability to use its prior related knowledge. The results
show that the lack of foreign market knowledge in the ongoing business is determined both by the
firms absorptive capacity generated in dyadic relationships with foreign customers and the customers
network. The dyadic and network absorptive capacities, however, appear to be used differently in the
ongoing business. Dyadic absorptive capacity seems to decrease the lack of foreign market knowledge,
whereas customer network absorptive capacity seems to increase it.
Diamanto Politis and Joans Gabrielsson in their article Entrepreneurs attitude towards failure- an
Experiential approach noted that, In order to learn from a failure situation extant research suggests that
it is important to think about why the failure has occurred (Sitkin, 1992; Cannon & Edmondson, 2001).
However, a favourable evaluative reaction requires that the entrepreneur has a positive attitude towards
the act of failing (Shepherd, 2003). If an entrepreneur views a failure as an opportunity for reflection
and consideration which in the long run even may lead to positive outcomes he or she can also be more
receptive and deal with the failure situation as a temporal problem that needs to be resolved. With a
positive attitude towards failure, the very act of failing can then be confronted, studied and dealt with in
a systematic and professional manner (Cannon & Edmondson, 2005).
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IV. Need for learning

One example of the potential for extending research in entrepreneurial learning arises from the
consideration of the learning organization (or company), defined as "an entity, an ideal type of
organization, which has the capacity to learn effectively and hence to prosper" Some of the key
concerns and assumptions of the organizational learning which is
1. experiential : the past experiences gained by an Entrepreneur.
2. Learning is a process that relatively permanent alters the character of behavior
3. Individual learning taking place in social context
4. Learning is organized by existing standard operating procedures, practices and
organizational rules and routines.
The emerging knowledge base of how enterprising individuals can develop and nurture a
favourable entrepreneurial mindset where failures are used as opportunities for learning and
development in the process of new venture creation.
During the stage of idea perception, the individual entrepreneurs need to rely on their previous
knowledge. But the learning on market acceptability, financial viability, availability of resources of
his firm are also the important ones. Hence organizational learning is the key factor in the business
opportunity recognition process. Learning is the consequence of
Development of new commercial and technological knowledge

Active search for information to analyse market and the existence of related technological
needs.
Tracking and use of knowledge generated outside the firm, for which the entrepreneurs
learning will provide a source of competitive advantage that will have an obvious impact
on the success of the business.
V. Proactiveness
Proactiveness is the motive of doing continuous business. The Entrepreneurs are motivated
to do their own business, using experiential knowledge, Risk taking ability adopting a cautious wait
and see posture, managing the external environment, taking decisions in order to minimize the
probability of minimizing the costly mistakes would surely take them to the long run and
expansion of their business and profit making affair.
The role the entrepreneur play as an individual is , motivation being one of the strongest parts of it.
Entrepreneurs role as a motivator for people who work for him, or where he is supposed to be
providing leadership . Therefore the entrepreneur is inspired, providing Motivation being up
and being enthusiastic.
VI. Innovation and Entrepreneurship: Need of the Hour

Technology in and of itself is, not an innovation. Innovation is the combination of technology with
market needs to create profitable business opportunity. Thus the technological innovation takes place
only when the entrepreneur is able to identify the market needs and design a product to satisfy these
needs using an adequate potential knowledge and resources..
VII. Findings of the study

From this descriptive study, the interface between learning in Entrepreneurial context is very
essential and there is close relationship between these variables for the success of any business. The
interactions with complimentary backgrounds of entrepreneurship is clearly brought and the
proactiveness and learning and continuous evaluation are the key issues discussed. And also the
Entrepreneurs technological Innovative alertness is very much needed for successful running of the
business.
485
VIII. Conclusion
This article provide clear evidence that the key issues of Entrepreneurship and organizational
learning and Innovation. What this paper share is the concern for understanding the process of
dynamics of Entrepreneurial learning, knowledge transformation and exploitation. Collectively they
reflect some of the key concerns and assumptions of the organizational learning which is 1.
experiential 2. Learning is a process that relatively permanent alters the character of behavior 3.
Individual learning taking place in social context 4 learning is organized by existing standard
operating procedures, practices and organizational rules and routines. Further research is needed on this
paper ( Empirical analysis) which will try to interrelate the domains of content (knowledge ) and
process of learning. As this field develops, the major challenge will be the design, development, and
execution of robust and relevant empirical studies, using the full range of appropriate methodologies,
which address the full range of potential studies at the interface between organizational learning and
knowledge management and the entrepreneurial context.
References
1. Kent Eriksson and Sylvie Chetty ,The effect of experience and absorptive capacity on foreign
market knowledge, International Business Review Volume 12, Issue 6, December 2003, Pages
673-695
2. Diamanto Politis and Joans Gabrielsson, Entrepreneurs attitude towards failure- an
Experiential approach. Sweden.
3. Jan Verloop, (2004)Insight into Innovation, ISBN 10: 0-444-51683-2 ISBN 13: 978-0-444-
51683-1 Imprint: ELSEVIER
4. Mirjam Knockaert , Deniz Ucbasaran, Mike Wright, Bart Clarysse, The relationship between
knowledge transfer, top management team composition, and performance: Entrepreneurship
theory and practices , Articles in the issue of July2011
486
IMPACT OF SUPPLY CHAIN MANAGEMENT ON GROWTH PROSPECTS OF
TEXTILES & APPARELS IN SOUTH TAMILNADU.
N.AmulPraveena, BE,MBA,(PhD), MISTE, Dr. A.Mahadevan, Director, Excel Business School
INTRODUCTION
The textile industry is often portrayed in the literature and in policy circles as a quintessential sunset
industry. As technological change, asset formation, skill premiums, and productivity increases shift
resources toward other more dynamic sectors of a modernizing economy, the share of textiles and
apparel in total employment and output is expected to decline. Yet, even while debates continue in
many advanced industrial economies about whether labor-intensive traditional sectors can stay
competitive and continue to create good jobs, the textile and apparel industry has remained a crucial
manufacturing sector in many industrial economies, and is often one of their leading employers.
Understanding how employment intensive traditional sectors can restructure to compete in a global
environment is therefore important both from the perspective of helping such industries adjust in the
short run, and from the perspective of strengthening their contribution to the regions employment and
productivity in the long run.
Textile Industry is providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant
industry, from the production of raw materials to the delivery of finished products, with substantial
value-addition at each stage of processing; it is a major contribution to the country's economy. Under
these circumstances India needs to go a longer way. An IIM Ahmedabad study points out the loopholes
in Indian Textile Industry as -- long manufacturing & delivery times, conflict and competition between
small medium & large players and amongst links of supply chain viz.cotton producers, spinners,
weavers etc., poor process control, outdated technology, nonexistent indigenous R&D etc.
GROWTH PROSPECTS FOR TEXTILE INDUSTRIES:

Demand for cotton and manmade fibers in India will likely to strengthen in response to rising consumer
demand in India and increased exports of textiles and apparels following the removal of the Multifiber
Arrangement quotas. Our economy is largely dependent on the textile manufacturing and trade in
addition to other major industries. As dynamic HonourableMr.Dhayanidhimaran has taken charge as
the Minister of textiles, the industry is looking forward for a boost up and radical changes towards
improvement globally. The concept of SCM has been already proved as an tool for the betterment for
apparels internationally. Ideas about establishing textile processing park at Cuddalore and a Composite
Textile Park Karur and Techno parks at several places will provide an ideal opportunity for the
different segments of the textile industry to go in for forward and backward integration and ensure their
presence across the textile value chain. So much so, the textile industry accounts for as large as 21% of
the total employment generated in the economy. India, the worlds third-largest producer of cotton and
second-largest producer of cotton yarns and textiles, is poised to play an increasingly important role in
global cotton and textile markets as a result of domestic and multilateral policy reform.
The Multi-fibre arrangement is due to expire by the year 2005, as a result competition will increase
drastically. In Italy a cluster of small specialised textile firms are competing on end products, Germans
weave for 24 hours under "lights out" arrangement, Total quality Management is ensured in Japanese
and American plants, ' looming robots ' are installed and firms in Southern USA are reported to be
researching the use of genetic engineering, cellular biology and tissue culture to grow colored cotton.
The present Chinese textile firms are imparting 70 hrs. of training each year to an experienced worker
as opposed to 10 hrs. by Indian firms, investing in R&D for New Application Areas, addressing the
issue of quality systematically and also canalising export through centralised channels. The main
challenge for Indian textile Industry lies in protecting domestic market. The 3C's of Commitment, Co-
ordination and Co-operation need to be applied at all levels by the industry to be able to maintain its
presence in the global market.
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WHAT IS SUPPLY CHAIN MANAGEMENT?
Supply chain management (SCM) is the process of planning, implementing, and controlling
the operations of the supply chain with the purpose to satisfy customer requirements as
efficiently as possible.
Supply chain management spans from point-of-origin to point-of-consumption. The term
supply chain management was coined by consultant Keith Oliver, of strategy consulting firm
Booz Allen Hamilton in 1982
Supply Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third-party service providers, and customers.
The success of applying the supply chain concept and improvement of SCM depends largely on
effective contributions by various members of an interdisciplinary, or even a cross-functional, team. No
single scientific discipline or professional field can claim all the credit for success. Researchers in
various disciplines, extension workers, practitioners and policy makers should collaborate in analyzing
the problems, formulating the improved schemes and designing the actions needed to implement them.
SWOT ANALYSIS OF TEXTILE SECTOR IN TAMILNADU WITH RESPECT TO SCM:
The textile industry in India has a strong multi-fibre raw material production base, vast pool of skilled
personnel, entrepreneurial talent, good export potential and low import content. Production systems are
flexible, dynamic and vibrant. However, the industrys above strengths get substantially diluted on
account of production process disadvantages in certain areas in terms of technology and supply-chain
management deficiencies. It is high time that adequate corrective measures were taken to prepare a
technology savvy industry to meet the challenges ahead.
The ongoing globalization process is replete with threats from our competitors, particularly the export-
led economies like China to de-stabilize our export and local markets. At the same time, one should
also realise that it offers unlimited opportunities. In order to withstand the competition both in
international and domestic markets and
accelerate our export growth; it is imperative to identify the strengths and weaknesses of the textile
industry hindering its growth.
SUPPLY CHAIN PROBLEMS AND CONCEPTUAL FRAME WORK:

Volatile and inadequate quality.
Long delivery times.
Highly complex and Catholic organizations.
Non-competitive product pricing.
Lack of data literacy and production coordination systems.
Unable to deliver basic customer services.
Lack of coordination and cooperation along supply chain.
Lack of technological advancements
Buyer-driven commodity chains are characterized by decentralized production networks, usually

dispersed globally, that are coordinated by lead firms who control product design, marketing, and
branding. Labor intensive sectors such as the apparel and garment industries are quintessential
examples of buyer-driven chains where large retailers, marketers and branded manufacturers, such as
J.C. Penny, Reebok, Sears, Nike, Liz Claiborne and Wal-Mart, play pivotal coordinating roles. As
export structures shift, the place of different countries in these commodity chains also changes,
bringing with it, the prospects for upgrading. In buyer-driven chains such as textiles and apparel for
example, firms in low-wage, industrializing countries are typically found at the bottom end of the
488
commodity chain, engaged in assembly or basic production under specification from large retailers or
marketers (or their agents), who define the product and its design and control its marketing and
distribution.
With this framework in mind, we now turn to the Tamil Nadus textile sector in the context of the
industrys value chain as it extends from cotton to ginning to spinning to apparel and garments, via
weaving, knitting and finishing. As is well known, in the Indian context, different segments of the
production chain may be reserved or not, for production by small scale firms, and/or characterized by
the co-existence of a range of production techniques and scales of production, each governed by a
different set of rules even in the same sector. This dichotomy is best captured by the well-known
distinction between the organized and unorganized sectors. The organized sector in the textile
industry consists of composite mills and independent spinning mills. The unorganized sector is a vast,
and rapidly growing, decentralized sector engaged primarily in weaving, fabric production, garment
production, and since the early 1990s, spinning as well. This segmented supply side is a legacy of
Indias textile policy as it has evolved over the years. It continues to challenge the adjustment
underway in the sector today, as we will see in the following sections. The box below summarizes the
current structure of policies affecting the value chain in the textile industry.
PROSPECTS OF SCM APPLICATION:

The management of supply chains is one of the significant strategic aspects of business organizations.
Managing the production of good and services, monitoring storage inventories, contacting suppliers
and ensuring timely distribution of goods are some of the major activities covered by supply chain
management (SCM). The supply chain is actually made up of three important components which
include cash, product and information. Within the chain, the suppliers, retailers, manufacturers,
wholesalers and consumers interact with one another. Through these components and members, the
management of the supply chain allows efficient inventory control. As a dynamic process, the SCM
requires the continuous exchange of information, funds and materials between and within the members
of the chain. These features of the SCM also make this business aspect challenging to implement and
maintain.
Among the business sectors applying SCM practices, the textile and apparel industry is one of those
who have been applying this strategy. In India,, the Textile industry is one of its important and highly
contributory economic sector; thus, various local textile mills and businesses are employing various
innovations so as to operate successfully, both in the local and international setting. This study was
conducted in order to determine how apparel business operators in the country are using supply chain
management practices can be applied for the benefit of the growth and development of textiles at this
competitive era of technology. SCM techniques and its impact as well as the difficulties encountered
by this SCM application can also identified and suitable solutions can be provided.
Relevance of the Supply Chain to the textile Industry

The textile industry goes through a number of business challenges, those would require certain
activities such as production systems, forecasting and inventory management to face those challenges.
This emphasizes the need for the apparel industry to employ innovative systems to manage and handle
its supply chains. Traditionally, the supply chain approach of apparel establishments is made up of the
formation of inventories for raw materials, work processes and finished products which react slowly to
changing consumer trends as they establish similar inventory levels for both volatile and non-volatile
goods. However, the development of SCM systems through innovative and more advanced tools
allowed acquiring useful benefits.
CONCLUSION
Various regulatory, technological and marketing changes were expected to affect Indias textile
industry over the next few years. This sector open to severe competition from countries like China, Sri
Lanka, Thailand, Indonesia, Bangladesh and Vietnam. For a product line characterised by
489
unpredictable demand pattern and seasonality on one end and highly labour intensive on other, it is
necessary to have flexibility to balance the labour force employment from time to time. There are few
factors such as infrastructure and government policies that have caused wide gap in the economic
development between India and other nations for textile industry in particular, in spite of enjoying the
benefits of abundant cheap labour, low manufacturing cost, available raw materials and a large
domestic market. The shortages (stock outs) represent lost sales opportunities and surpluses result in
lost revenues consequent to successive reductions (markdowns), often to a point below the cost of
production. Thus first time right quality, timeliness and frequent delivery of small lot sizes with a
short lead time are the key success factors for any supplier country.
A Confederation of Indian Industry (CII) study has projected creation of 50 lakh new jobs in the Indian
textile industry during the next 10 years. A CII release said textiles had emerged as a high-growth
sector, recording 12-13 per cent growth. "It is all set to become a $ 40-50 billion industry by 2015, with
a potential to create 50 lakh new jobs," it said. According to the study Mapping of Human Resource
Skills in Tamil Nadu 2015 the textile industry is highly influenced by Government policy support,
globalization, impact of the World Trade Organization, development in retailing and technology and
supply chain integration. "Tamil Nadu is well positioned to capitalise on the post-WTO scenario since
it has an established textile industry base, and home to more than 40 per cent of the large and medium-
sized spinning mills in the country.
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A COMPREHENSIVE PRODUCTION SYSTEM IN AN ENGINEERING INDUSTRY
Govinda Bhat S, Head (Department of Management Studies) ASIET, KALADY
Abstract
Production is conversion of input materials into finished products. A production system is just like a
black box or magic box where in conversion takes place. Let us have a peep into the material flow and
associated documents in a production system. Production and Vendor Development are two sides of the
same coin. A product consists of various parts. Some parts, it may be economical to manufacture
inside. Some parts, it will be wise to source from outside. Let us focus on bought out items. Vendors
deliver the items in the premises of the company through a delivery challan (DC).This supply is against
the purchase order. The items are received by the inward store/ receiving store and quantity is ensured.
If any deviation is there, discrepancy note is raised on the vendor and the corrective action is
immediately effected.
Then the material is presented to the Quality Assurance (QA) for checking the quality along with a
document called IGRR (Inspection and Goods Received Report). A tag (White color) is also attached
to the material. The QA department does the inward inspection and the lot gets splits into three types
accepted material, rejected material & rectifiable material. These are identified by colored tags such as
Green, Red and Yellow. The accepted material along with IGRR (except the QA copy) will be taken by
stores department. The stock/accepted material will be stacked & preserved in the central/component
stores. The rectifiable material will be taken to the rectifiable yard, rectified, re-inspected and a
decision is taken on acceptance. The rejections are dumped in the earmarked area in the inward stores
for the specified period & either taken back by the vendor or auctioned as scrap as the case may be.
The stock is issued to the production shop against SIN (Store Issue Note). This is normally done in
the initial days of the month. Any excess material issued will be returned to the stores through SRN
(Store Return note). In the production shop, again there could be some rejections known as
line/assembly rejections which will be sorted out jointly by the QA& Production department once in a
quarter through ARN (Assembly Rejection Note). In the case of assembly rejections, the vendor will be
penalized. In the case of assembly damage, company has to bear the cost. Assembly rejections are a
wake up call for the inward inspection team (QA department) to tighten the inspection in the required
area. Assembly damages are a wakeup call for the line mechanics to get training & equip themselves
better. The product is checked at every stage of manufacturing through in-process inspection. The final
product is presented to finished product inspection team (QA department) for checking the
quality/functional compliance through a transfer note. The finished product inspection is performed by
a special team & documented with the help of Finished Product Inspection Report. In the case of
defectives, the products are returned to production department for doing rectification. After
rectification, re-inspection is done and a decision on acceptance is taken. Once accepted the green
stickers TESTED OK are pasted on the products at designated spots only. The okayed products are
transferred to finished product store by the Production department through transfer notes. Again from
there to Marketing department through another set of transfer notes. The products are shipped to the
required destinations by the stores as per the instructions obtained from the Marketing department. The
field complaints are received by the Marketing department and referred to QA or Production
department as the case may be for detailed investigation.
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2
3 5
1
4
6
7
FIGURE: 1
The above figure depicts the material flow in a production system in a typical engineering
industry.
1. Inward/Receiving Stores
2. Inward /Receiving Inspection Department
3. Component / Central Stores
4. Production unit
5. Finished Product Inspection Department
6. Finished Product Stores
7. Marketing Department
A Production industry is just like a black box or magic box wherein input materials are converted into
finished products. The exaggerated view of such an industry/ engineering industry is shown in the
figure 1. Any product consists of many parts. It is not desirable to make all these parts in house. These
parts vary from a small screw to heavy castings, forgings etc. Here company has to apply Make or
Buy Decision. In the case of some parts, it is worthwhile to source them from outside rather than
making inside. That is why we say that Production & Vendor Development are two sides of the same
coin. Vendor development is an upstream activity. Every company must have a set of Approved
Vendors which is subjected to periodic review based on the performance of vendors. The purchase
department of the company places firm purchase orders on these vendors based on the requirements.
Against these purchase orders, they deliver the material to the premises of the company. The material
are delivered against Delivery Challan (DC).Of course other necessary commercial documents will
also be there. These items upon delivery are first received in the receiving stores. The items will be
counted and the material will be ensured against the purchase order specifications. In the case of
discrepancy, a discrepancy note will be raised immediately on the vendor and the material will be held
back in the stores itself till the mess is cleared. The receiving store prepares IGRR- Inspection and
Goods Received Report for each & every lot received.
Apart from Inward inspection, In-process inspection & finished product inspection, QA department
carries out Sample Inspection Inspection of samples submitted by various vendors trying to qualify
as Approved Vendors. Similarly, principle of Acceptance Sampling can be put to use for non
critical items during inward inspection. But if it results in production held-up, then company has to
resort to 100% inspection and accept whatever possible & see that production is on which is the prime
objective of the company.
Reference:
This paper is purely based on the practical work experience of the author when he was working as head
of QA department in an engineering industry manufacturing agriculture based machineries. The name
of the Company is kept confident for obvious reasons. It is an ISO-9001:2008 Certified Company
located near Kochi in Kerala State.
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MANUFACTURING AUTOMATION MYTHS AND REALITIES
Rejish David Jose.P- Assistant Professor/ MBA,
MeenashiSundar.R- II MBA RVS College of Engineering and Technology.
INTRODUCTION
Automation is the use of control systems and IT to reduces the need for human work in the production
of goods and services.
Its a step beyond mechanization where it decreases the need for human sensory and mental
requirements as well.
OBJECTIVES
Reliability and Precision
Productivity
Convertibility and Turnover Time.
Myths about automation
The concept of automation could spread an impression among various industries in beginning stages
that, it could address almost all the pitfalls and grey areas related to industrial productivity and
precision.
The expectations were high with respect to energy consumption of automated systems. The strongest
argument against the automation was that it would generate unemployment, because of the replacement
of human labor by Machines/Systems.
Let us now examine the implication of automation from a comparative perspective of merits and
demerits.
The merits;
It replaces human operates in tasks that involve hard physical/monotonous work.
It can substitute human in tasks done in dangerous environments.
It can perform tasks that are beyond human capabilities of size, weight, speed, endurance etc.
Automation may improve the economy of enterprises, society /most of humanity.
The demerits;
The opponents strongly argue that unemployment rate increases.
Limitation in current technologies to accommodate automation for all the desired tasks.
Security threats/vulnerability.
Unpredictable developmental costs.
High initial costs.
From the above perspectives, we can now analyze the realities observed in Industrial
automation.
The costs of automation to the environment are different depending on the technology
products /engines that consume more energy resources than the conventional ones.
The next observed reality is the significance of human role.
Many other roles for humans in industrial process presently lie beyond the scope of
automation.
Eg ; human level pattern recognition, language recognition are well beyond the capability of modern
mechanical and the computer systems.
493
Task requiring subjective assenment and strategic planning currently require human expertise and also
in many cases, the use of humans is more cost effective than mechanical approaches.
RELATIONSHIP TO UNEMPLOYMENT
This relationship of automation to unemployment is a multivariate one and peoples ideas about its
nature in their time, as well as their prediction about the future, have varied widely [and have often
been wrong].
The automation generally displace workers some [but not all] areas of employment. The central
question has always been, whether and where those work will find new employment.
The central fear has always been that, no new jobs or not enough new jobs would arise to fill the void.
They turned out to be wrong and as expected the immediate massive unemployment never arose
because of automation but because of some other dominant factors.
The real hope has always been that although automation would reduce the number of jobs, it would not
reduce and would even improve standard of living and would provide humanity with unprecedented
leisure opportunity and material comfort.
The fact that for centuries, no permanent structural unemployment has ever been proven to result from
automation and the idea that automation can cause such unemployment is considered as a fallacy in
conventional economic theory. After many decades of automation development and dessimination, the
net macroeconomic effect has been generally positive.
Thus as proven emprically by quoting the job losses in any one particular economic niche have always
been more than offset by job gains in other niches. As the lowered unit cost of goods and services
[made possible by automation] gave consumers more purchasing power to devote to other goods and
services, new jobs sprang up in the production of those goods and services.
Thus each time that automation has freed up human resources, those resources have been redeployed
by market forces (provided turbulence occur in the lives of individual workers)
One of the earliest process of automation was to allow more free time without any threat of income
reduction [home automation, automated manufacturing, etc]
Automation also does not imply unemployment when it makes possible tasks that were unimaginable
without it.
CONCLUSION
Today, the automation is quite advanced and it continues to advance with an accelerating pace
throughout the world. Although it has been encroaching on ever more skilled jobs, the general well
being and quality of life of most people in the world have improved.
Though it has got the grey areas, what we should do is to understand. We have to be turbulent so that as
new opportunities are created which should be capitalized by the flexibility which we can attain
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ROLE OF ADVANCED MANUFACTURING SYSTEMS
DURING BUSINESS TRENDS
Renganathan.R(MBA,Mphil) Lecturer(MBA-Dept)
Rajalakshmi Institute Of Technology, Kuthambakkam,Chennai 600 124
Abstract
Survival and success in present turbulent times increasingly depends on competitiveness.
Competitiveness in the manufacturing sector comes through an integrated effort across different
functions and deployment of advanced manufacturing technologies.
Advanced Manufacturing Technology (AMT) can impact not just manufacturing but the whole business
operations, giving new challenges to a firm's ability to manage both Manufacturing and Information
Technologies. The present situation requires implementation of team concepts and Integrated problem-
solving between Engineering and Manufacturing leading to unexpected dividends, higher variety and
lower costs.
Advanced Manufacturing Systems comprise a combination of material, engineering, chemical,

transportation and other logistic technologies. Further classification of the modern AMT into Direct,
Indirect and Administrative AMT necessitates future integration and Cost-cutting.
The trend catching up in Developed and developing countries is Advanced Manufacturing Partnerships
which brings together industry, universities and the federal government to invest in the emerging
technologies to create high quality manufacturing jobs and enhance global competitiveness. These have
been a stepping stone for providing jobs for not only Countries like China and India but Countries who
have adopted the adopted the stimulus packages and experienced moderate growth viz. North Carolina
in U.S.A. There are instances of workers being laid-off after 35 years of traditional manufacturing. The
present trend is from low-tech mass production to Hi-tech Specialisation through automation. The
experienced worker through training in Advanced Manufacturing Systems finds better jobs in
Aerospace, Defence, Technology, aviation to do complex transformational operations.
The recent trends in business have catapulted Advanced Manufacturing Technologies beyond
computers, namely CAD, CNC, direct numeric control, Robotics, Flexible Manufacturing System,
automated storage and retrieval system, rapid prototyping, activity-based costing and Office
automation to Key Enabling Technologies of Current critical relevance namely Photonics,
Nanotechnology, Advanced materials and Biotechnology. The shift is towards Robotics, measurement
systems, cognitive information processing, signal processing and production control.
Environmental Issues and Depleting natural resources are the most important issues in Strategic
Manufacturing Decisions. Companies such as Siemens A.G. Use a holistic approach to optimise
energy in production through Energy Health Check, Analysis, Concept and Implementation phases.
The semi-automatic production of industry compressors as well as energy aware product development
process supported by the EcoCare matrix methodology as part of the PLM(Product Life Cycle
methodology) process is blatant example of such measures.One such result is the S.M.A.R.T(Self
Monitoring Analysis and Reporting technology) solution in several states of India in which
conventional bulbs are exchanged by long-life compact fluorescent lamps.
In recent years the challenge of the demand sustainability present a common approach for collaboration
and competition.Existing Business strategies for industrial value creation are transferred to the field of
remanufacturing for creating partners in value-creation networks for remanufacturing of production
equipment.Remanufacturing has extended to a large number of consumer goods with short life cycles
with relatively low values.The discussion summarises the role of advanced manufacturing system with
the precipitation of reconfigurable manufacturing system which aims to be cost effective and rapid in
system changes by incorporating principles of modularity,integrability and scalability.The latest
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inclusion in this schema being the Lean Value Stream Manufacturing(LVSM) approach where the
concept of lean manufacturing and value-adding process is integrated.The value stream approach
eliminates wastes while eliminating mismatch between manufacturing and Accounting System.
Keywords:
Advanced Manufacturing Technology, SMART, Key Enabling Technologies Advanced Manufacturing

Partnerships, Lean Value Stream Manufacturing
1.Introduction:
1.1History Of Manufacturing:
Ancient people developed and designed the products according to their immediate use in order to fulfill
the needs and wants of their current requirement.The industrial development started from the traditional
level of manual manufacturing.This trend activated industrialist to move for automated machine
installation to cope with the emerging demand made by consumers.Initial development were carried out
in the 1960s within the aircraft and the automotive industries in the area of 3D surface construction and
NC programming.Developments were pioneered by General Motors Research laboratories in the early
1960s.The entry of Computers made quick correction and manipulation over traditional drafting
methods.CAD development resulted from efforts to facilitate the flow from design process to
Manufacturing.
What is Advanced Manufacturing?

Several perspectives on what constitutes Advanced Manufacturing have been offered by leading
Experts,Businesses and Government Organisations.Advanced Manufacturing is viewed differently by
different people .It probably incorporates aspect of all the following perspectives when considering
the public policy questions posed by Council for Science and Technical Research.Some experts define
Manufacturing as a new way of accomplishing the how to of production where the emphasis is
Customisation and Scalability while advancing the technologies necessary to improve capabilities.
1.2Description of Advanced Manufacturing Systems

Advanced Manufacturing Systems (AMS) comprise production systems and associated services,
processes, plants and equipment, including automation, robotics, measurement systems, cognitive
information processing, signal processing and production control by high-speed information and
communication systems.
AMS are essential for productivity gains across sectors such as the aerospace, automotive,
consumer products, electronics, engineering, energy-intensive, food and agricultural as well as
optical industries. They also can make an effective response to societal challenges including health,
climate change, resource efficiency and job creation.
Description of Advanced Manufacturing Systems

AMS involve manufacturing operations that create high-tech products, use innovative techniques in
manufacturing and invent new processes and technologies for future manufacturing. The AMS
definition used in this document covers both manufacturing of high-tech product, processes and
solutions for future manufacturing, as well as services associated to them. Some significant
features can be identified to help distinguish AMS from traditional manufacturing technologies.
AMS significantly increase speed, decrease costs or materials consumption, and improve operating
precision, as well as environmental aspects, such as waste and pollution of manufacturing
processes. AMS include the use of different materials composed of traditional structures, as well as,
of new elements and compounds. They entail the integration of new technology (such as ICT) and
processes to help improve the conception, design, production, testing, handling, distribution and
recycling of a product. Moreover, AMS have a strong potential for a multi-sectoral application, are
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key to industrial productivity gains, and can make an effective response to societal challenges like
energy efficiency, climate change and resource scarcity.
1.3 Importance of Advanced Manufacturing
AMS define production systems and associated services ,processes, plants and equipment which help
achieve significant productivity gains. Advanced Manufacturing requires best in Class characteristics-
High Quality, Reliability, Productivity, Cost Efficiency.

Advanced Manufacturing is Capital and Knowledge intensive. It covers technologically complex
industries with Complex Manufacturing methods, processes and products. It is often built on strong
human skills and multi-disciplinary legacy including Materials technology, Mechatronics, physics.
Nanotechnology among others.
Advanced manufacturing technologies are necessary to turn Key Enabling Technologies (KET) into
value for our society. This includes creating jobs and contributing to GDP growth.
2.Background
What are Business Trends?
2.1Current Trends:
With the Economy not being stable, the trends in Manufacturing can change from one day to next. Not
only will we need to keep with Manufacturing trends but with other Business Trends. There are
websites dedicated to the update on Business trends that pertain to the type of Manufacturing they do.
The internet is a great resource dedicated to Manufacturing and Media sources such as Business
magazines, Talk shows keep us informed on Current Trends. Business Trend Survey provide insight
into IT budgets, IT Purchasing Behaviours, attitude towards Green IT and Manufacturing Demand
Management.
Indicator Units Values

Number of enterprises Thousands 2323
Persons Employed Thousands 34541
Turnover EUR Million 7273512
Value added EUR Million 1812963
Gross operating Surplus EUR Million 694282
Investment EUR Million 262448
Share of Non-Financial Business
economy
Employment % 25.8
Value Added % 30
Investment % 22.2
Table1:Key Indicators in Manufacturing
Standardisation
Use standards to facilitate the adoption of advanced manufacturing systems by end-user sectors
Stimulate the expansion of green technologies through standards
Better understanding and increased ability to identify and estimate various AMT benefits would help
them to assess these benefits more properly and it will prevent disappointing results of such a project
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when it reaches the phase of routine operation and it is too late to change the decision that was based on
imperfect or even misleading assumptions.
The process of AMT requirements analysis, planning, particular technology selection, the relevant
investment decision and the project implementation must not be based on more or less enthusiastic
individuals or groups in the company. It must be anchored in sound and clear procedures within the
overall system of company management to ensure implementation in a vibrant enterprise of any
developing economy.
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S.Arul Krishnan, M.Sc, MBA, M.Phil., , Assistant Professor Vel Tech Ranga Sanku Arts College,
E. Narmadha Vel-Tech Ranga Sanku Arts College,
A. Haseena Begum, Student, Vel-Tech Ranga Sanku Arts College, Department of Management
Studies.
ABSTRACT
ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an
organization into one single system. Usually ERP Systems will have many components including
hardware and software, in order to achieve integration, most ERP systems use a unified database to
store data for various functions found throughout the organization. ERP is a company-wide computer
software system used to manage and coordinate all the resources, information, and functions of a
business from shared data stores. ERP implementation, as a change initiative, is a challenge facing any
organization and requires strong support from top management and users. However, internal support is
inadequate to overcome client deficiencies in the resources and abilities essential to ERP
implementation, implying that the assistance of outside experts is inevitable. This study presents a
conceptual framework to investigate how human inputs (top management, users, and external
consultants) are linked to communication effectiveness and conflict resolution in the ERP consulting
process, as well as the effects of these factors on the quality of the system implemented. Through a
survey of 85 ERP implementation projects in Taiwanese manufacturers, the study demonstrates that
competent consultants can facilitate communication and conflict resolution in the ERP consulting
process and assist in improving ERP system quality. The findings indicate that top management
support indirectly enhances ERP system quality through its positive effect on conflict resolution in the
consulting process. The results also show that high user support enhances communication
effectiveness; however, communication effectiveness does not influence conflict resolution and ERP
system quality. The implications and the limitations of the study are discussed. . This paper focused on
tools, Advantages and Disadvantages, Limitations, Applications, Benefits, Current situation, and
Overview of ERP in MIS Development.
INTRODUCTION
Enterprise Resource Planning is an integration of business management modules and user friendly
technology. ERP is a well managed centralized data storage house which acquires information from
and supply information for complete computing solutions at universal level. In large business
organization it's a diffcult task to manage various data at different servers. ERP helps to manage data
under one common platform. ERP software solutions are essential for optimizing costing accuracy for
the benefit of making decisions on day to day operations. A management information system (MIS) is a
system that provides information needed to manage organizations effectively.
An ERP system has a service-oriented architecture with modular hardware and software units or
"services" that communicate on a local area network. The modular design allows a business to add or
reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared
database that may be centralized or distributed.
The term ERP originally referred to how a large organization planned to use organizational wide
resources. In the past, ERP systems were used in larger more industrial types of companies. However,
the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of
company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of
organization - large or small.
Tools of ERP in MIS Development

Purchase
Manufacturing
Inventory/Stores
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Finance/Accounting
Production
Maintenance
Administration
Advantages and Disadvantages of ERP Systems in MIS Development:
There are many advantages of implementing an EPR system in MIS Development. Some of them are
listed here:
Improved customer service and satisfaction.
Improved productivity, speed and performance.
Enhanced tracking and forecasting.
Improved efficiency, performance and productivity levels.
Design engineering order tracking from acceptance through fulfillment.
The revenue cycle from invoice through cash receipt.
Managing interdependencies of complex Bill of Materials.
Tracking the 3-way match between Purchase orders, Inventory receipts, and costing.
The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
Disadvantages of ERP:
Many problems organizations have with ERP systems are due to inadequate investment in ongoing
training for involved personnel, including those implementing and testing changes, as well as a lack of
corporate policy protecting the integrity of the data in the ERP systems.
Current situation of ERP in MIS Development:

The current situation of ERP:
Over 42 per cent indicated that additional user training, better skilled people, and/or change
management are required to fully leverage ERP;
32 per cent indicated that changing or standardizing processes, organizing differently, changing the
work culture, or "adapting to the power of ERP" are necessary to leverage ERP;
32 per cent indicated that full implementation, better integration, or economies of scale are necessary.
Overview of Marketing Management Information System (MIS) in ERP:

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Inputs to Marketing MIS in ERP Development
Strategic plan and corporate policies
The TPS (Transaction Processing Systems)
External sources:
The competition
The market
Inputs to the Human Resource MIS

Strategic plan or corporate policies
The TPS(Transaction Processing Systems):
Payroll data
Order processing data
Personnel data
External sources
Human Resource MIS Subsystems and Outputs

Human resource planning
Personnel selection and recruiting
Training and skills inventory
Scheduling and job placement
Wage and salary administration
Conclusion
The success of the system is fully dependent on how the workers utilize it. This means they must be
properly trained, and a number of companies have attempted to save money by reducing the cost of
training. Even if a company has enough money to implement ERP, they may not be able to successfully
use it if they do not have enough money to train their workers on the process of using it. One of the
biggest problems with ERP is that it is hard to customize. Very few companies can effectively use ERP
right out of the box. It must be modified to suit their needs, and this process can be both expensive and
tedious. Even when a company does begin changing the system, they are limited in what they can do.
REFERENCES
Ford, N. "From Information- to Best HR Practices," Journal of Information Science Principles &
Practice
www.erpworld.com
www.woodheadpublishing.com
www.citehr.com
www.misdevelopment.in
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BUSINESS ETHICS
Mrs. R. Bhuvaneswari, MBA, M.Phil, MHRM, MDCA, MISTE, UGC-NET. Assistant Professor,
STET School of Management, Mannargudi.
ABSTRACT:
Business ethics usually mean one of three things: (1) avoid breaking the criminal law in ones work-
related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid
actions that are bad for the company image. Businesses are especially concerned with these three things
since they involve loss of money and company reputation. Ethics is a complex subject and its history is
filled with diverse theories that are systematically refuted by rival theories. Close attention to ones
profit motive and the moral interests of consumers might in fact generate some morally responsible
business decisions. Additional moral guidance can be indeed found by looking at the laws that apply
specifically to businesses. In gray areas of moral controversy that are not adequately addressed by
profit motives and the law, one can turn for guidance to a variety of general and specific moral
principles.
KEY WORDS: corporate governance, stake holder protection, social responsibility, principles and
policy, labor practices and social environment.
INTRODUCTION:
The moral challenge for businesses is balancing ones profit interests against the needs of
employees, consumers, governments and special interest groups. The moral challenge is even more
intense for multinational companies who need to live up to moral expectations. Business Ethics is the
behavior that a business adheres to in its daily dealings with the world. The ethics of a particular
business can be diverse. They apply not only to how the business interacts with the world at large, but
also to their one-on-one dealings with a single customer.
Business ethics do not allow a company to do whatever is necessary to make money. Corporate social
responsibility dictates that businesses must provide safe working conditions and use manufacturing
practices that do not unnecessarily harm the environment. Business ethics also require that companies
provide accurate financial data to stockholders and avoid advertising their products and services to
consumers under false pretenses.
DEFINITION:
Business Ethics are the rules and principles of ethics within a commercial context. In general,
they consist of: (1) the social responsibility that a business is supposed to have towards the community;
(2) the company's responsibility towards its shareholders; (3) inter-company dealings and negotiations;
(4) stakeholder protection, and (5) the company's fundamental business practices.
Hence Business Ethics deals with
a) Governance: regulation, corporate governance committees, auditing, etc.
b) Creating an Ethical Culture: strategic planning, human resources, organizational ethics, etc.
c) Leadership: executive compensation, tone at the top, the role of the CEO in ethics, etc.
d) Corporate Social Responsibility: sustainability, stakeholder theory, triple bottom line, etc.
e) Workplace Issues: labor and employment practices, monitoring, work/life balance, etc.
f) Product and Brand: consumer safety, reputation, intellectual property, and strategic
marketing
g) Corporate Wrongdoing: corruption, bribery, scandals, whistle blowing, etc.
h) Professional Ethics: the behavior of managers and employees in matters such as loyalty,
honesty, etc.
i) Global Business Ethics: cross-cultural issues.
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BUSINESS ETHICS AND SOCIAL RESPONSIBILTIY:
Large organizations or publicly held companies often use corporate governance to promote
business ethics and social responsibility. This governance creates the framework of policies,
procedures, and guidelines for all individuals financial invested in a company.
Sometimes, an industry group can give awards to companies to promote a cause within a field
of business. Corporate social responsibility awards can be given by industry leaders to draw
attention to or raise standards in a certain area of social responsibility.
Corporate social responsibility is not simply about moral philosophy, it is also strongly
connected to the long-term future of a business. A logging company that does not take care to
sustainably source its timber will eventually run out of trees. Companies that plan for long-term
sustainability may be able to outlast competitive businesses that remain short-sighted. Moreover, the
reduction of pollution and sustainable use of resources may contribute significantly to the future
habitability of the entire planet, which is quite important to any company that plans to have customers,
workers, or shareholders in the distant future.
In addition to the business advantages of corporate social responsibility, the social advantages
should not be overlooked. Corporations with responsible labor policies can help improve human rights
around the world by fighting against policies that allow slave and child labor. Though competitors that
take advantage of poor international labor standards may have a higher profit margin in the short term,
corporations that work with governments to improve labor standards worldwide may eventually
eliminate or severely limit this morally dubious advantage. In terms of environmental policy,
corporations have the opportunity to stand at the forefront of the speedily evolving alternative energy
market, preventing them from tying their profits and productivity to the increasingly risky oil market.
BUSINESS ETHICS POLICY:

Business ethics policy, also commonly called the corporate ethics policy, is the companys
statement, or guidelines, on the expected behavior of the employees and the company itself while
dealing with others. The business ethics policy acts as the definer of what is right or wrong, moral or
unethical. The core aim of every trading business is to make money; capitalism at its greatest height.
Making as much money as possible is not a threat to the business ethics concept, but the way a business
does it is the determinant of whether its right or wrong.
There are general business ethics that are expected, or are demanded, by forces outside the
company such as the government or the industrys watchdogs. The American business ethics policy is
the general guideline for American businesses on their business ethics practices and involves how the
company behaves towards the community, the environment, competition, and all other factors that
affect its business. For a company to avoid spending money on litigation and fines, they should instill
good business ethics and values on each of their employees.
Generally, the business ethics policy is guided by some standard principles that are universal.
The first basic principle is honesty; the business should vow to always tell the truth without misleading
people. The information given out should be true to the type of relationship involved. The other
principle is quality assurance; this makes the business deliver what it promises in quality, quantity, and
in the time promised. The business should go to lengthy measures to fulfill their commitments.
The business ethics policy should also demand fairness and respect on all business
management ethics adapted. This leads to unquestionable business ethics practices that do not segregate
nor discriminate on bases of class, race, religion, health, education and many others. All the people
coming into contact with the business are treated equally. The respect should be directed to all the
employees, the customers, supplies, the government and the society at large. Adept business ethics will
include the business ethics and social responsibility towards the immediate community. A business
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ethics research will unveil the most suitable business ethics for individual businesses for each specific
industry.
PRINCIPLES OF BUSINESS ETHICS POLICY:

Business ethics policy should be based on five fundamental principles:
Purpose - A purpose combines both your vision as well as the values you would like to see
upheld in your business. It comes from the top and outlines specifically what is considered
acceptable as well as unacceptable in terms of conduct in your business.
Pride - Pride builds dignity and self-respect. If employees are proud of where they work and
what they are doing, they are much more apt to act in an ethical manner.
Patience - Since one must focus on long-term versus short-term results, one must develop a
certain degree of patience. Without it, one will become too frustrated and will be more
tempted to choose unethical alternatives.
Persistence - Persistence means standing by the word. It means being committed to solid
business ethics. If one is not committed to the ethics one has outlined, then it becomes
worthless. Stand by the word.
Perspective - In a world where there is never enough time to do everything we need or want
to do, it is often difficult to maintain perspective.
A solid business ethics policy is a reflection of the values deemed important to the business.
BUSINESSES RESISTANCE TO ENVIRONMENTAL RESPONSIBILITY:

Although businesses dont consciously set out to harm the environment, several factors create
an unfortunate situation, which in many cases is worse than it needs to be.
First, large businesses and industries are inherently imposing on nature. They take pieces of
nature and reshape them into things that didnt exist before, such as automobiles, skyscrapers,
television sets and shopping malls. Not only are the end products artificial, and in that sense unnatural,
but the means of producing these things are taxing on natural resources.
REGULATION OF ETHICAL BEHAVIOUR:

The government can regulate ethical behavior by passing laws that require businesses to take
certain actions. In many ways, however, professional organizations may be the best equipped to impart
a sense of business ethics onto a particular industry. Organizations such as the Public Relations Society
of America, the National Independent Automobile Dealers Association, the Chartered Property
Casualty Underwriters Society, and the National Association of Realtors have codes of ethical behavior
that members are required to follow and provide regular training events that help encourage open
discussions of business ethics.
CONLUSION:
In the end, it may be up to the public to make sure that a company adheres to correct business
ethics. If the company is making large amounts of money, they may not wish to pay too close attention
to their ethical behavior. There are many companies that pride themselves in their correct business
ethics, but in this competitive world, they are becoming very few and far between.
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INNOVATIVE MANAGEMENT
J. Aruna, AP, Thiruvarur
Innovative Management Meaning:
It aims at creating favorable conditions to exploit the potential of employees in the
generation and development of product innovations, technological, environmental, organizational,
management area in increasing the number of innovations implemented in the company increases its
competitive position in the market and enables greater customer satisfaction.
Innovation management is the discipline of managing processes in innovation. It can

be used to develop both product and organizational innovation. Without proper processes, it is not
possible for R&D to be efficient; innovation management includes a set of tools that allow managers
and engineers to cooperate with a common understanding of goals and processes.
The focus of innovation management:
1. To allow the organization to respond to an external or internal opportunity, and use its creative
efforts to introduce new ideas, processes or products.
2. It is not relegated to R&D, it involves workers at every level in contributing creatively to a
company's development, manufacturing, and marketing. By utilizing appropriate innovation
management tools, management can trigger and deploy the creative juices of the whole work
force towards the continuous development of a company.
3. The process can be viewed as an evolutionary integration of organization, technology and
market by iterating series of activities: search, select, implement and capture.
4. Innovation processes can either be pushed or pulled through development. A pushed process is
based on existing or newly invented technology, that the organization has access to, and tries
to find profitable applications to use this technology. A pulled process tries to find areas where
customers needs are not met, and then focus development efforts to find solutions to those
needs.
5. To succeed with either method, an understanding of both the market and the technical
problems are needed. By creating multi-functional development teams, containing both
engineers and marketers, both dimensions can be solved.
6. The lifetime (or product lifecycle) of new products is steadily getting shorter; increased
competition therefore forces companies reduce the time to market. Innovation managers must
therefore decrease development time, without sacrificing quality or meeting the needs of the
market.
Common tools of innovative management include

1. Brainstorming
2. Virtual prototyping
3. Product lifecycle management
4. TRIZ
5. Stage-gate process
6. Project management
7. Product line planning
8. Portfolio management.
9 strategies for sustained innovation

1.collective sense of purpose;
Sustained innovation comes from developing a collective sense of purpose; from unleashing
the creativity of people throughout your organization and from teaching them how to recognize
unconventional opportunities.Leaders create the psychological environment that fosters sustained
innovation at all levels. The challenge is that as an organization grows, management structures and
bureaucracies, designed to channel growth, tend to create barriers to small-scale enhancements.The
commitment to establishing the right psychological conditions for innovation needs to start at the top.
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This means that, as a leader, you need to consider your own assumptions about innovation and their
role in creating and changing your organizations culture.
Changing cultures involves changing minds, and that takes time. But as with any initiative,
a clear sense of the target helps to speed the journey.
2.Open communication
Open communication between management and employees sets the stage for an atmosphere
of trust. Company leadership initiates the process of open communication by sharing information with
employees on a regular basis. This includes good news and bad.
3. Reduce bureaucracy:
While larger organizations are often considered less entrepreneurial and inventive than their
smaller counterparts, its not the size of your company that inhibits innovation -- its the systems.
Bureaucracy slows down action and is a serious impediment to innovation.
Smaller organizations can often move faster on implementing innovative ideas because they have less
bureaucracy. When Jack Welch was reengineering General Electric he said, My goal is to get the
small companys soul and small companys speed inside our big company.
4. Instill a sense of ownership :

An ownership mentality creates a powerful incentive for inventive thinking. When an
individual is clearly aware of how his or her interests are aligned with those of the company, he or she
has a strong reason to go the extra mile to further the mission.
Stock ownership is a significant, if not essential, incentive for employees. However on its own, profit-
sharing doesnt guarantee your employees will think like owners
5. Make sure recognition and rewards are consistent:

While financial rewards are often tied to innovations, rewarding only the individual or team
responsible for the big idea or its implementation, sets up a subtle competitive atmosphere that
discourages the smaller, less dramatic improvements.
Even team-based compensation can be counterproductive if teams are set up to compete with each
other for rewards. These incentives discourage the cross functional collaboration so critical to
maximum performance.
6. A tolerance for risk and failure:

Tolerating a certain degree of failure as a necessary part of growth is an important part of
encouraging innovation. Innovation is a risk. Employees wont take risks unless they understand goals
clearly, have a clear but flexible framework in which to operate and understand that failures are
recognized as simply steps in the learning process.
7. Eliminate projects and processes that dont work:

Peter Drucker calls creative abandonment. Projects and processes that no longer contribute
should be abandoned to make room for new, progressive activities.
While no organization wants to squander financial resources on unprofitable activities, it is actually the
irreplaceable resource of time and employee energy that is wasted if a company holds on to the old way
of doing things.
CONCLUSION:
Leaders of organizations that sustain innovation offer multiple opportunities for
communication.While not every company can offer an open-door policy for its senior executives, or
even a chance for regular face-to-face contact, every organization can institute programs that enable
front-line workers to feel heard. From CEO lunches with cross-sections of employees, to monthly
division meetings between employees and the general manager, to open intranet forums for idea
sharing and feedback, leaders can communicate their openness to hearing innovative ideas from those
who are closest to the customer.
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ASSESSING THE INPUTS AND OUTPUTS OF PARTNERSHIP ARRANGEMENTS
FOR HEALTH AND SAFETY MANAGEMENT
Palanivel.R.V, Assistant Professor, M.A.M.B-School, Siruganur-621 105, Tiruchirappalli
R.Anbarasan, Assistant Professor, M.A.M. B-School, Siruganur-621 105, Tiruchirappalli,
ABSTRACT:
Partnerships have the potential to create significant benefits for all participants provided
that there is a mutual understanding of and respect for the inputs required and the outputs sought
from the arrangements by each party. The aim of this study was to explore the inputs required and
the outputs achieved by partners as a function of the level of involvement required within the
partnership arrangement. The study has investigated the extent to which the input criteria defined by
the DTI and the output criteria defined by Kantar,within three health and safety initiatives involving
homeworker-employer, employee-employer, and contractor-employer partnerships varied, as a
function of the level of partnership defined by Thompson and Sanders. The examination of the
partnership arrangements within the three case studies demonstrated that the inputs were very similar
whether the arrangements were classified as co-operation, collaboration or coalescence, although the
extent of the output criteria was greatest in the case of the coalescence partnership. The results
illustrated the level of inputs required within a range of partnership arrangements in the context of
health and safety management and the range of outputs that might be anticipated.
INTRODUCTION
Partnerships, which include working arrangements, such as joint working, coordinated
working, collaboration, coalition and alliances (Taket and White, 2000), have become widespread in a
range of industrial sectors.Kantar (1994, p. 96) commented: Alliances between companies, whether
they are from different sides of the world or different ends of the supply chain, are a fact of life in
business today. The net result of these partnerships is that: Strategic alliances and closer
relationships with suppliers and contractors tend to blur the boundaries of the enterprise (OECD,
2000). Whilst partnering has often been discussed in the context of inter-organisational relationships,
it has been recognised that the principles of partnering are equally applicable between other parties,
such as intra-company groups of employees and managers. For example, the UK Department of Trade
and Industry (DTI, 2000) advocated within its Partnerships with People initiative that, because
everyone was capable of contributing to the goals of an organisation, the implementation of partnering
approaches could improve the competitiveness of UK industry.
METHODOLOGY
The data analysed and presented in this paper were gathered from three independent projects,
which were carried out by the authors in order to assess a range of health and safety management
issues within the organisational settings described. The details of the design and implementation of
these studies have been reported previously (Fuller and Vassie, 2001; Vassie, 1998, 2000). The
information used included quantitative data such as audit reports and responses to questionnaires, and
qualitative data such as observation reports, interview responses and documents analyses.
Subsequently, secondary analyses were undertaken of relevant data obtained from these studies in
order to provide some insights into the inputs and outputs, as defined by the DTI (2000) and Kanter
(1994) respectively, and to identify the level and type of partnership, as defined by Thompson and
Sanders (1998), in the context of health and safety management.
ORGANISATIONAL SETTING A
Organisational setting A was the corporate headquarters of a UK high-street bank employing
850 people in a range of corporate banking functions, including debt collection. The organisation
adopted a health and safety management system largely based on the Health and Safety Executives
(2000) guidelines for good management. The organisation was concerned about the employees
wellbeing due to pressures caused by workload, lengthy commuting times and the need for parents to
coordinate child care arrangements within school and work hours. Due to high operational demands
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within the organisations debt collection department, the need arose to increase the number of staff
working at the corporate headquarters; however, these premises were already full to capacity. Given
the concerns over the employees wellbeing, the organisation was interested, therefore, in exploring
flexible work arrangements for employees. Following discussions at team meetings, volunteers were
recruited by the bank from this group of employees in order to take part in a pilot homeworking
project, which represented a departure from standard bank management practices.
ORGANISATIONAL SETTING B
Organisational setting B was the UK division of a multi-national consumer product company
employing around 1,000 people on site. The organisation had well-developed physical and
management controls, which were based on the Health and Safety Executives (2000) guidelines for
good management and included systems for employee consultation and cooperation on health and
safety issues. They had achieved a good safety performance, in terms of the reportable accident rate,
compared to the sector average performance (Vassie,1998). However, the organisation wanted to
achieve further improvements in its safety performance and, in particular, wanted to involve
employees in the continuous improvement approach to health and safety management that had been
adopted by the organisation. Following a number of discussion meetings between all grades of
employees and management, a decision was reached to pursue an intervention programme involving
employees and managers in order to develop a process for promoting and monitoring safe work
practices.
RESULT
ORGANISATIONAL SETTING A
Four employees from the debt collection department were recruited to take part in a
homeworking pilot project on the understanding that if at the end of the pilot project they did not wish
to continue with homeworking they would be able to return to work at the corporate headquarters. The
bank provided the homeworkers with all their work equipment, which was of an equivalent standard
to that used at head office. Communication with head office was provided for the homeworkers
through telephone, e-mail and intranet access. Prior to commencing and approximately one month
after starting the pilot project, risk assessments of the home work environment were carried out using
proforma checklists. The initial assessments were undertaken by the homeworkers but the follow up
assessments were completed by the companys health and safety manager. Thereafter, quarterly visits
were undertaken by the departmental health and safety representative to each homeworker in order to
monitor the health, safety and wellbeing of the employees. In addition to the remote communications
access to the office, the homeworkers supervisor visited the employee on a monthly basis and the
homeworkers attended the head office on a bi-monthly basis. During the home visits, the supervisor
provided training and guidance in relevant health and safety matters. Homeworkers received
additional remuneration in order to compensate them for their additional expenditure on heating and
lighting costs while working at home.
ORGANISATIONAL SETTING B
The intervention programme was facilitated by a steering group, which reflected the full
range of job functions within the site, and comprised four key implementation phases. During the first
phase, data on the safety cultures within the employee and management groups, the safety
management system and the safety performance were used to provide qualitative indications of the
benchmark position of the organisation prior to the intervention. Phase two involved the definition of
the implementation plan with milestones, tasks and measurement and feedback criteria. The definition
of goals in phase two enabled individuals to see how they attend into the programme, whilst the
definition of group tasks provided an opportunity for people to work together and the definition of
feedback mechanisms provided people with information on their progress towards the goals. Phase
three involved the provision of training in a range of techniques for the steering group. Employees
were divided into natural work teams based on the areas in which they worked: within each team there
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was a programme advisor, who was a member of the steering group and who had responsibilities for
overseeing the progress of the team
ORGANISATIONAL SETTING C
The company perceived that a wide range of constantly changing contractor agreements made
it difficult to establish the environment that was required to support a strong health and safety culture
together with high standards of performance. The company, therefore, viewed partnering as a possible
solution to the cost versus health and safety standards dilemma. Within the established partnership
arrangements the company published a policy that required employees and contractors, who were
operating within joint ventures and alliance agreements, to implement health and safety management
systems that were aligned with those of the organisation. In order to fulfil this expectation, the
company assessed the capabilities and competencies of its contractors to perform work on behalf of the
company and, as appropriate, worked with the contracting organisations to ensure cultural alignment.
Subsequently, it developed partnership agreements with ten partners and around thirty subsidiary
supporting contractors that covered operational, maintenance and support service activities.
DISCUSSION
Partnerships have the potential to create significant benefits for all participants provided that
there is a mutual understanding of and respect for the inputs required and the outputs sought from the
arrangements by each party. Failure to achieve this understanding will result in limited success for a
partnership. This was clearly demonstrated by Cooney (2002) in an assessment of the tripartite
arrangement between the Australian Government, manufacturing unions and employers for improving
national training standards. The government sought to establish the tripartite partnership in order to
establish training policies and programmes. The unions, however, aimed to reform industrial relations
and to re-establish union influence within the workplace. The unions, therefore, sought to work with
the government to establish a favourable training policy and with businesses to regulate the
implementation process. Businesses, on the other hand, envisaged the partnerships as a means to
decentralise workplace regulation, which would lead to the development of voluntary partnerships
between employers and employees. The three parties therefore embarked on the partnership
arrangement with quite different views about the required inputs and anticipated outcomes. Although
partnership arrangement used in the Australian Training Reform Agenda undoubtedly achieved some
of its objectives, such as accredited vocational training, it also foundered because the individual
partners were intent on achieving their own short-term objectives rather than the longer-term national
objectives. For example, many businesses preferred to pay only for employees skills that were actually
used within the job rather than to pay for the total package of employee skills that had been acquired
through the partnership education and training programmes (Cooney, 2002).
CONCLUSION
The examination of partnership arrangements within the three case studies demonstrated that
the inputs required for successful partnerships were very similar whether the arrangements were
classified as co-operation, collaboration or coalescence. In a successful cooperative partnership,
however, there was little necessity for the goals of the individual groups to be the same, as long as
both parties were able to achieve their own objectives. The inputs for success from each party are
therefore similar irrespective of the position of the arrangement on the partnership continuum. This
conclusion emphasises, therefore, that the adoption of a cooperative partnership does not represent an
easier option than a coalescent partnership but rather that it may represent the best approach for
achieving the goals of the various groups involved in the particular partnership arrangement.
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A CASE STUDY OF VISHRANTHI
Dr. Shanthi Nachiappan, HOD & Prof, Rajalakshmi Institute of Technology, Chennai
Introduction
Put a smile back on an aged face. And in your life, happiness will grace.
Women in entrepreneurship are a rare phenomenon and women as social entrepreneurs are
further exceptional. This case study basically deals with one such social entrepreneur Ms.Savithri
Vaithi, Founder of Vishranthi, an old age home in Chennai. Being a pioneer in the field she struggled a
lot to break the social taboos and successfully overcame the challenges. With her positive and
innovative mind set she encountered all her challenges into cash cows.
This case study basically deals with a social need and a bigger challenge caring for the
elders. In the busy world, today to lead a comfortable life, people have to slog, work through day and
night. They sacrifice a lot in their lives in order to have a comfortable living. The family bondage and
affection, love towards the elders has lost their place in the busy world of economic race among the
beings. The case study basically deals with a case study of Vishranthi - which provides old age care for
elders in Chennai, India.
In India too, most of the elders live with their extended family while a selected few are facing
problems. Elders who are economically weaker and who did not plan for their old age face old age
caring problems. Such elders are taken care by NGOs and one such NGO is Vishranthi. But caring for
elders is not an easy task; it has its own challenges. Now, let us see the case study of Vishranthi and
understand the challenges of caring for elders.
Strengths of Vishranthi
1. Excellent administration
2. Adequate staffs support.
3. Good public image.
4. Dedicated trust members.
Challenges faced during the start-up of the venture

Social taboo
The foremost problem faced by Vishranthi at the start up was a strict opposition from the
society. In 1978, starting an old age home was considered as against the customs and traditions of the
society. People criticized that it would in fact lead to disintegration of families, wherein their children
would dump the old people into such an organization. The act of starting an old age home was viewed
as a neglect of culture. By then there were only 2 or 3 old age homes run by Christian missionaries.
Savithri Vaithi said that, she never bothered about the social criticisms but concentrated on her
activities to build and strengthen her organization Vishranthi. She started with just one inmate.
Financial constraint
Initially they had financial constraints to run the home. As the saying goes Where there is a will, there
is a way they were able to manage the organization so far, but even today the problem continues. They
need to run behind people to collect donations.
Lack of Experts
During the start up stages, Vishranthi found it difficult to get trained nurses and geriatric trained
employees. Vishranthi was able to overcome this problem by training the staff after hiring them.
Current Challenges
Challenges for Vishranthi is from several fronts the customers, employees, society, donors
Once a lady admitted her old mother in Vishranthi and the old lady ate a lot (as old people are fond of
eating) for two days immediately after admission and had diarriah problem and died. When the
daughter came to Vishranthi she slapped the Vishranthi staff out of anger and Savithri Vaithi handled
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her carefully and told her that, as the lady was unable to manage her mother she had admitted her in
Vishranthi and she had no morality to complain and misbehave.
Donors too behave in a different way at times. Some of them want to donate a lot and want to
have control over the NGO management. Some donors donate little but want a big publicity. Donors
need to be handled carefully as successful running of the NGO completely depends on them.
Employees fight with each other because of ego clashes and finding employees with human values and
skills of handling elderly people is very difficult.
Once in Vishranthi they had problem with septic tank. They have to clean it up, so temporarily
they connected it into the drainage that leads to the sea. The people in the slum agitated against it and
Ms.Savithri Vaithi handled them properly.
Some more challenges are sick people are admitted to Vishranthi these days and it takes a lot
of effort and money to maintain such people. Owing to ever rising prices of essential commodities,
Vishranthi is facing shortage of funds. At least 20 kilograms of vegetables are required everyday.
Vishranthi wants to get out of such deficits and needs a permanent solution to face any inflationary
conditions.
Some inmates run out of Vishranthi complaining and they expressed their dislikes even
though they were given adequate care and support. "Its hard to satisfy everyone, isnt it?" quips
Savithri. The do good things like Savithri Vaithi (Founder of Vishranthi) were able to provide care and
affection to the old age destitute people. Now Vishranthi needs more funds and service oriented human
resources to look after elders. How to raise these resources?
Reunion is a bigger challenge to them. They want to send back the inmates (elderly people) to their
sons / daughters place. But again they failed in this process. Mostly children are not interested in
taking back their mother to their house and at times parents resist going back and living with their
children.
But there are successful reunion stories too

Once a person belonging to a lower income category admitted his mother in the old age home due
to family pressures and income problem. But he promised to take her back once he came up in life.
After some years, he did so.
An inmate named Radha (name changed), got convinced that she should get on well with her
family as she felt the need for love and affection of her children and grand children, she left
Vishranthi on her will within a few months of her admission. Vishranthi did its bit by counseling
her.
Ms.Savithri Vaithi in one of her interviews revealed that The average age of man in increasing and the
survey reveals that by 2050 about 50% of the population will be above 70 years of age. With growing
demands for materialistic welfare the need the old age homes will keep increasing. But one good thing
about India is that we always love and respect elders. Of late, I see the willingness to care for elders in
the family are growing. This is a very positive trend. Social Entrepreneurship is like a tight rope walk
and Ms.Savithri Vaithi is enjoying it as she is passionate about it.
Conclusion
In 1978 there were only few old age homes in Chennai, but now there are more than 80. Is
this really good for the society.? India will be having lot of elderly people in the future. It is high
time to learn from other countries. In most of the developed countries, elders were taken care by the
Government. Government can think of running many old age homes free of cost to take care of
economically downtrodden elders in each district. In other countries either because or religious
compulsions or because of emotional bonding or beliefs, elders were taken care by the extended
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families. Discounts in departmental stores, restaurants and travel services could be considered for
elders. Government can think of implementing Social Security Payment for all elders, sponsoring
medical aids programs with minimum monthly payments, etc for elders. If citizens abide by the recent
legal enforcement stating it is the responsibility of child/children to take care of their parents, the rate
of elders caring problem might come down in the future.
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WOMEN EMPOWERMENT THROUGH SELF-HELP GROUP
P.Murali, Assistant Professor, Department of MBA,
Selvam College of Technology, Namakkal,
ABSTRACT:
The growing social awareness across the globe has brought a number of issues to the fore
among which gender equality and empowerment of women are very significant. Discrimination against
women in the form of male-female differentiation constitutes the core of the gender-biased system. The
Word Bank has suggested that empowerment of women should be a key aspect of social development
programs. The empowerment is not essentially political alone in fact; political empowerment will not
succeed in the absence of economic empowerment. The scheme of micro financing through Self Help
Groups (SHGs) has transferred the real economic power in the hands of women and has considerably
reduced their dependence on men. The empowerment of women and improvement of their status and
economic role needs to be integrated into economic development programs, as the development of any
country is inseparably linked with the status and development of women. Given the gender division of
labour that prevails in India, Nutrition, Child health, and related matters typically depend mostly on
womens actions and decisions. Experience has shown that promotion of enterprise creation and
income generating activities among women would transform them from being alive to living with
dignity. One of the powerful approaches to women empowerment and rural entrepreneurship is the
formation of Self Help Groups (SHGs) especially among women. Women being central to the entire
development process and at the precursor of social transformation can be demonstrated with many
examples that could include Grameen Banks success, SHGs of ICICI Bank, Shakthi Ammas at HLL,
Cemex, Amul, the success of Avon, Mary Kay, and Tupperware in US and other parts of the world.
INTRODUCTION:
This paper is divided into two sections. In the first section we shall discuss the concept of
Self-Help Groups (SHGs) as an instrument of economic empowerment, its various models and the
strength of informal sector over formal sector. In section II Importance of women empowerment
through SHGs. Section III we shall conclude with the presentation of strategy of women empowerment
by linking benefits extended by the governments to the members of Self-Help Groups (SHGs).
Self- help group as an instrument of economic empowerment:

Self Help Group (SHG) is a small voluntary association of poor people, preferably from the
same socioeconomic background. They come together for the purpose of solving their common
problems through self-help and mutual help. The SHG promotes small savings among its members.
The savings are kept with a bank. This common fund is in the name of the SHG. Usually, the number
of members in one SHG does not exceed twenty.
Formal & Informal systems

Traditionally, the formal sector Banking Institution in India have been serving only the needs of
the commercial sector and providing loans for middle and upper income groups.
In India, we have multi-agency rural credit delivery structure comprising commercial Banks, Regional
Rural Banks and Cooperative Banks with a large network of more than 1, 53,000 retail credit outlets
(One for every 4100 population). Yet reaching the poorest, whose credit requirements are very small,
frequent and unpredictable, is still a difficult task and Sahukars (the rural non-formal Money Lenders)
continues to be the main agency. Further, the systems and lengthy procedures of the banking
institutions with emphasis on complicated qualifying requirements, tangible collateral, margin etc. also
kept them away from these formal agencies. Banks too experienced certain problems like poor
repayment, lack of supervision and monitoring, high proportion of non performing assets and poor
repayment. Since the credit requirements of the rural poor cannot be adopted on project lending
approach (like in formal organized sector) there emerged the need for an informal credit supply through
SHGs. Social intermediation is required for:
1. Organizing rural poor women
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2. Educating them
3. Imparting Training and skill
Commercial Banks, Housing Finance Institutions, NABARD, and Rural Development Banks,
Land Development Banks, Cooperative Banks, are the major formal financial institutions. Urban
Cooperative Banks (UCB) Urban Credit Cooperative Societies (UCCS) are the two primary
cooperative financial institutions operating in the urban areas.
Importance of women empowerment through SHGs:

Women are critical for Development: In his book "The Fortune at the bottom of the Pyramid",
Prof. C.K.Prahlad comments, "A well-understood but poorly articulated reality of development is the
role of women. Women are central to the entire development process. There are also at the vanguard of
social transformation. For example, Grameen bank's success is based on lending only to women. The
SHGs at ICICI bank are all women, as are the shakti ammas at HLL. The women are entrepreneurs
responsible for saving and accessing credit. In the case of CEMEX, the company works only with
women. Amul, a milk cooperative, depends on women for their milk origination in villages. Women
also collect the cash for the milk and therefore have achieved a new social status. Access to economic
independence can change the long tradition of suppression of women and denial of opportunities. The
success of Avon, Mary Kay and Tupperware in US and other parts of the world are also based on the
role of women entrepreneurship.
When asked with Muhammad Yunus, managing director of Grameen Bank in Bangladesh, a
pioneer in the practice of microcredit lending as to why loaned primarily to women, he replied, that "It
has to do with the decision to have a separate bank for the poor people. From the beginning, I had
complained about the banking system on two grounds. One complaint was that the banking system was
denying financial services to the poor people through certain rules it had set up. The second allegation
was that the banking system also was not treating women fairly. If you look at the gender composition
of all the borrowers of all the banks in Bangladesh, not even 1 % of the borrowers happen to be
women. I said this is a very gender-biased organization. So when I began, I wanted to make sure half
the borrowers in my program are women so that they are even. I did that. It was not easy because
women themselves didn't think that they should borrow money. I had to do a lot of convincing. I
encouraged them to believe that they can borrow money and make money. Part of that effort was to
overcome fears -- cultural fears -- and the fact that they had never had any experience with business
and so on. Soon we saw that money going to women brought much more benefit to the family than
money going to the men. So we changed our policy and gave a high priority to women. As a result,
now 96% of our four Million borrowers in Grameen Bank are women".
Effective steps towards achieving greater control of their lives. The SHG approach has proved
successful not only in improving the economic conditions through income generation but in creating
awareness about health and hygiene, sanitation and cleanliness, environmental protection, importance
of education and better response for development schemes. Through organizing informal self-help
groups (SHGs), rural women in India are provided credit and extension support for various production-
oriented income generating activities. These activities usually include garment making, embroidery,
food processing, bee keeping, basketry, gem cutting, weaving, and knitting. SHGs are self-governed,
with decisions about production and marketing taken collectively, although the group leader is
responsible for identifying potential marketing centers and consumers. These groups represent a new
culture in rural development, breaking with traditional bureaucracy and top-down management.
Informal groups empower rural women to manage rural industries and make decisions collectively for
their common economic interests. Studies on the development of informal women's groups in India,
shows how it is possible to avoid the 'top-down management' and bureaucracy that often contribute to
the failure of other schemes. Informal self-help groups in rural areas serve to empower women, and
provide a basis for the provision of credit and other support for various production and income-
generation activities.
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CONCLUSION:
The success of any strategy of women empowerment depends upon the following factors:
Level of education, hard work, Social custom, Family planning, small family, Health, medical services,
cleanliness, Environment, tree growing, kitchen gardening and , Collective strategies beyond micro-
credit to increase the endowments of the poor/women enhance their exchange outcomes vis--vis the
family, markets, state and community, and socio-cultural and political spaces are required for both
poverty reduction and women empowerment.
515
VIRTUAL MANAGEMENT
Ms.M.Surya, Asst.Professor, M.A.M. B School, Trichy.
In the present day world virtual management is a very essential one in the day to day life.
Virtual management, brought about by the rise of the Internet, globalization, outsourcing,
telecommuting, and virtual teams, is management of frequently widely dispersed groups and
individuals with rarely, if ever, meeting them face to face. It is estimated that 41 million corporate
employees globally will spend at least one day a week as a virtual worker and 100 million will work
from home at least one day a month. Some of the factors that contribute to the virtual management they
are Develop follower trust, Establish role clarity, Be aware of information overload, Become a present
leader, Not all team are the same.
The benefits of virtual management are worker talented not limited to one location, Increase in
productivity, extends market opportunity, greatly reduces cost increased job satisfaction,
miscommunication problem more likely to occur, lack of project feasibility and logistics difficulties.
Virtual organizations can be very complex and problematic; they fail as often as they succeed. Among
the many challenges of the virtual organization are strategic planning dilemmas, boundary blurring, a
loss of control, and a need for new managerial skills.
The business environment will no doubt require firms to become even more flexible, more
agile, and to bring products and services to market at an increasing rapid pace. Traditional organization
forms are no longer capable of sustaining the needs of this relentless pace. New forms of organizing,
such as the virtual organization, hold promise as organizational leaders experiment and learn new
strategies for managing in the twenty-first century and beyond. These new structures, however, will
require managers and leaders to face exciting challenges as they move into an environment of increased
uncertainty and volatility.
INTRODUCTION:
In the present day world virtual management is a very essential one in the day to day life.
Virtual management, brought about by the rise of the Internet, globalization, outsourcing,
telecommuting, and virtual teams, is management of frequently widely dispersed groups and
individuals with rarely, if ever, meeting them face to face.
Due to developments in information technology within the workplace, along with a need to
compete globally and address competitive demands, organizations have embraced virtual management
structures. Virtual teams are typically composed of team members who are not located face-to-face and
their communication is mediated through information and communication technologies (e.g. video
conferencing, email and intranets). Virtual teams represent an important emerging organizational
structure which facilitates collaboration between team members located almost anywhere in the world.
It is estimated that 41 million corporate employees globally will spend at least one day a week as a
virtual worker and 100 million will work from home at least one day a month
BACKGROUND
Traditional organizations integrated work vertically; that is, they delegated authority in a
pyramidal, hierarchical structure. As the pyramid shape suggests, power was concentrated primarily
among the handful of individuals at the top. This organizational form, shown in Figure 1, was first
developed in the United States in the late 19th century with the advent of mass production
The hierarchical structure was designed to manage highly complex processes like automobile
assembly where production could be broken down into a series of simple steps. Hierarchical
corporations often controlled and managed all activities of a business from, the raw materials to their
allocation to consumers. A centralized managerial hierarchy controlled the entire production process,
with white-collar workers establishing rules and procedures to manage a blue-collar workforce.
516
From World War II until the early 1980s, the trend was to build increasing layers of management with
more staff specialists. This centralized hierarchical structure
Was seen as effective for managing large number of workers, but lacked agility and was
unable to process information rapidly throughout the organization.
NEW DEMANDS ALTER ORGANIZATIONAL FORMS

Since the 1980s, many organizations have flattened their structures by shifting authority
downward, giving employees increased autonomy and decision-making power. Advantages of flatter
organization forms include a decreased need for supervisors and middle management, faster decision
making, and the ability to process information faster because of the reduced number of layers in the
organization.
A consequence of flatter organizations, though, is that employees tend to be more dispersed

both geographically and organizationally. Responding to this problem of dispersion, many
organizations have eliminated superfluous processes and begun focusing on their core, value-added
business. Flat organizations using joint ventures and strategic alliances are providing increased
flexibility and innovation, and are replacing many traditional hierarchies.
THE NEW BUSINESS FORM

Ray Grenier and George Metes discuss the shift to this new
organizational structure as a response to unprecedented customer
expectations and alternatives, global competition, time compression,
complexity, rapid change, and increased use of technology. They
describe the virtual model as a lead organization that creates alliances
with groups and individuals from different organizations who possess
the highest competencies to build a specific product or service in a short
period of time.
Grenier and Meters further explain that these alliances are
virtual because products and services are not produced in a single
corporation whose purpose is longevity. Rather, these new virtual
organizations consist of a hybrid of groups and individuals from
different companies that might include customers, competitors, and
suppliers who have a focused purpose of bringing a high-quality
517
product or service to market as rapidly as possible. These alliances may be temporary with short
concept-to-delivery cycles.
CHALLENGES
Virtual organizations can be very complex and problematic; they fail as often as they succeed.
Among the many challenges of the virtual organization are strategic planning dilemmas, boundary
blurring, a loss of control, and a need for new managerial skills.
Strategic planning poses new challenges as virtual firms determine effective combinations of
core competencies. Common vision among partners is quintessential to cooperating firms. Focused on
a common goal, firms develop close interdependencies that may make it difficult to determine where
one company ends and another begins
Virtual structures create a loss of control over some operations. This loss of control requires
communication, coordination, and trust among the various partners, as well as a new set of managerial
skills. Employees are exposed to increased ambiguity about organizational membership, job roles and
responsibilities, career paths, and superior-subordinate relationships. This ambiguity requires
management to rethink rewards, benefits, employee development, staffing and other employee-related
issues. Developing leaders who are able to create and sustain these organizational forms is critical.
Les Pang offers a list of best practices, based on a review of successful implementations of virtual
organizations.
Foster cooperation, trust and empowerment.
Ensure each partner contributes and identifiable strength or asset.
Ensure skills and competencies are complementary, not overlapping.
Ensure partners are adaptable.
Ensure contractual agreements are clear and specific on roles and deliverables.
If possible, do not replace face-to-face interaction entirely.
Provide training that is critical to team success.
Recognize that it takes time to develop the team.
Ensure that technology is compatible and reliable.
Provide technical assistance that is competent and available.
FUTURE OF VIRTUAL ORGANIZATIONS

The business environment will no doubt require firms to become even more flexible, more
agile, and to bring products and services to market at an increasing rapid pace. Traditional organization
forms are no longer capable of sustaining the needs of this relentless pace. New forms of organizing,
such as the virtual organization, hold promise as organizational leaders experiment and learn new
strategies for managing in the twenty-first century and beyond. These new structures, however, will
require managers and leaders to face exciting challenges as they move into an environment of increased
uncertainty and volatility.
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CORPORATE SOCIAL RESPONSIBILITY IN INDIA
Mr.R.A.Ayyapparajan Asst. Professor ,Mr.B. Sathishkumar Asst.Professor,
A.Elgin Asst.Professor, School of Management , V.L.B. Janakiammal College of Engineering and
Techonology, Coimbatore
ABSTRACT
Corporate Social Responsibility seems to be the term of the day for an emerging corporate
India. As corporate citizens, people seem to be more than willing to come up with innovative models
for the up-liftment of society, using their own resources. Most businesses today have adopted a holistic
and inclusive business model which has a direct correlation with business performance. This includes a
system of triple bottom-line reporting - economic, social responsibility - and a focus on transparency
and accountability. Starting from teaching the underprivileged children, to sharing resources with flood
victims, to green planet fundamentals and to whatever else the organization feels it can give back to the
society.
INTRODUCTION
Corporate Social Responsibility seems to be the term of the day for an emerging corporate
India. As corporate citizens, people seem to be more than willing to come up with innovative models
for the up-liftment of society, using their own resources. Starting from teaching the underprivileged
children, to sharing resources with flood victims, to green planet fundamentals and to whatever else the
organization feels it can give back to the society, everything is being done today. Most businesses
today have adopted a holistic and inclusive business model which has a direct correlation with business
performance. This includes a system of triple bottom-line reporting - economic, social and
environmental - and a focus on transparency and accountability. Companies are now expected to
discharge their stakeholder responsibilities and societal obligations, along with their shareholder-wealth
maximisation goal.
SOCIAL RESPONSIBILITY OF INDIAN CORPORATES

Even much before the issue became a global concern, India was aware of corporate social
responsibility (CSR), due to the efforts of organisations such as the Tata Group.
Nearly all leading corporates in India are involved in CSR programmes in areas like
education, health, livelihood creation, skill development, and empowerment of the weaker sections of
the society. Notable efforts have come from the Tata
group, Infosys, Satyam Computer Services Limited, Bharti
Enterprises, Coca Cola India Pvt Ltd, Pepsico, ITC
Welcome group and Thermax Limited, among others.
Survey Report of TNS (a research organization)
The much awaited TF-TNS survey on Corporate
Social Responsibility amongst leading business and
corporate houses is out. This national survey was
undertaken by Times Foundation and TNS India, a leading
social and market research agency, to look into the various
issues of social relevance under the realm of CSR. The
survey has helped us to get not only the viewpoints of the
top management of leading Corporate Houses on CSR
policies but credible data on CSR policies in India in co-
relation with the policies of the Government of India. The
survey targeted companies in three sectors, i.e. Public
Sector Undertakings, Private Sector Undertakings that have
been nationalised and Private Companies. The questions
were addressed to the CEOs and CSR heads of the
companies.
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According to a survey carried out in June 2008 by TNS India (a research organization) and the
Times Foundation, over 90 per cent of all major Indian organizations surveyed were involved in CSR
initiatives. In fact, the private sector was more involved in CSR activities than the public and
government sectors. The leading areas that corporations were involved in were livelihood promotion,
education, health, environment, and women's empowerment. Most of the CSR ventures were done as
internal projects while a small proportion were as direct financial support to voluntary organizations or
communities.
INVOLVEMENT OF SMALL AND MEDIUM ENTERPRISES IN CSR

Now there are plans to also introduce CSR in the small and medium enterprises (SME) sector
to increase its reach in remote areas.
Stressing that community service should be a part of every corporate's programme, Tata Sons'
Director, J J Irani, said that the benefits provided by the corporates to the society should be considered
as an investment, rather than being seen as a cost. "It is not a cost, it is an investment.... There has to be
growth with everyone else," said Irani.
CSR Initiatives and Green Measures

India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set
up a global platform to showcase all the work done by Indian firms. Confederation of Indian Industry
(CII) and the TVS Group have collaborated to form the CII-TVS Centre of Excellence for Responsive
Corporate Citizenship. The outfit, based in Chennai, will provide consultancy services and technical
assistance on social development and CSR.
CII's 'Mission on Sustainable Growth' has set up a code which was formulated in 2006. It
provides consultancy services and technical assistance on social development and CSR. The mission's
aims are to promote the reduction of excessive consumption of natural resources and emission of
greenhouse gases. The code had started with 23 new signatories and the total number of code
signatories had gone up to 102, by September 2008.
Rural Development
Rural development is attracting major CSR initiatives from various corporates.
Reliance Communications, a Reliance ADA Group company, is planning to foray into the
hitherto uncharted mGovernance (mobile governance) sector with the introduction of the
service in select rural pockets. After offering various e-governance services in semi-urban and
rural markets in West Bengal, the service is likely to be soon launched in Andhra Pradesh and
Bihar. Information related to local issues will be provided though this service wherein
information related to local mandi prices, agriculture, fertiliser prices will be offered. A mass
messaging group platform, though which panchayats can relay their message is also another
area likely to be explored. Reliance Communication is also planning to introduce the
mCommerce service for transferring money to bank accounts, and making micro payments
using a mobile, in 2009. The company is planning to offer these services free to the
subscribers in the first two years.
Finacle, (the banking product division of Infosys Technologies) is planning to develop a
software product suite for rural operations of the financial sector.
Following the success of Hindustan Unilever Limited's (HUL) rural micro-enterprise, Project
Shakti, Unilever is now replicating the project in many international markets as well. The
project empowers rural women with micro-credit, and they work as direct-to-home
distributors of Unilever brands in rural markets. The project was launched in 2001 to empower
disadvantaged rural women by providing income-generating opportunities, health and hygiene
education. Appointed as Vanis (communicators) these women spread awareness in social
forums like schools and village get-togethers. Project Shakti operates in fifteen states.
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In an effort to modernise rural health services in India, GE Healthcare now wants to focus on
maternal health. Omar Ishrak, President and CEO of GEHC clinical systems, said, "GE
wanted to enter into rural healthcare in a big way and revolutionise in the same way as cell
phones did. We have embarked on several programmes in Bangladesh and India especially on
maternal care."
The Environmental Protection Agency (EPA) of the United States honoured Dr R K Pachauri,
Chairman, Intergovernmental Panel on Climate Change (IPCC) and Director General, The
Energy and Resources Institute (TERI) for his efforts and leadership in spreading awareness
about environmental issues.
CONCLUSION
Achievement Through Awareness
Apart from improving the overall quality of life, corporate social responsibility, sustainable
development and good human resource practices can help improve India's long-term international
competitiveness in attracting 'socially responsible investment'. Environmental, social and governance
(ESG) compliance would make Indian stocks stronger and more attractive to issuers from other
emerging markets, in the race for long-term, high quality investors.
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INNOVATION MANAGEMENT
B.DivyaPriya, Head, Department of Commerce (UG) & Maria Nancy Nicholas II B.Com.
Kongunadu Arts and Science College, Coimbatore.
Innovation without a customer is nonsense; its If not even innovation

We agree with the above, we should not feel shy to accept the following:
Invention is needed for innovation to take place- but invention is not innovation.
An organization cannot be called innovative just because it has an appreciable number of
patents in its kitty.
There is no correlation between the number of corporate patents and financial success.
The following myths about innovations are equally educative.
It is all about new product.
Innovation is for geniuses.
Innovation can be effected only in large firms.
A naturally derivative is that a company which waits for eureka moments sees the doomsday
very soon.
Is innovation a risky game?

Of course it is- which is why many people try to avoid the game. It is safe for them to buy or
borrow innovation which has the proven record of success in its true definition. Financial risk is better
understood. Currency and commodity risk can be hedged. No such advantage is available with
innovation. This risky nature keeps innovation away from venturing into it, not to speak of, accepting it
as a carrier. It is in the core of any risk-ridden activity that those who dare and succeed reap cheap
harvest. If we see innovation as a venture then knowing when to stop or terminate a venture may be as
important as knowing when to start.
A failure is a failure
Financial return is the most important quantifiable yardstick of success in industry. But it is not the
only one. On the other hand a technology award winning product (for technological excellence) may
fail to bring smile in the faces of the CEO- if the customers betray him fair and square. The history of
product and process innovation is littered with examples of apparently good ideas which failed- in
some cases with spectacular consequences.
Morals of a successive innovation
Success/failure should not be measured by the scale of product. The product family is a far
superiors unit of analysis.
New product failures can result in other important by-products: organizational, technological
and market development.
Full measure of a products impact can be determined by viewing in that context of both the
product that preceded it and those that followed.
No failure- worshipping
No one, however, innovates to fail. We neither pray for failure to occur nor extend a red-
carpet reception to it. We do not begin our day with a plan to commit a certain number of mistakes.
The submission is that a low-tolerance organization is not the propitious ground for
fructification of innovation. A successful organization will not go for hanging the staff who has failed
in his/her attempt to innovate. A true leader never calls his staff and says-I want a 30% increase in
your creativity in next three months. Otherwise I will ask you to put in your papers. A successful
leader is who can balance IQ and EQ. a great leader of innovation is able to talk openly about an
innovation failure.
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Unleashing Indias innovation
In 2007, the World Bank published a report entitled UNLEASHING INDIAS
INNOVATION. It stated, India is increasingly becoming a top global innovator for high-tech products
and services. Still, the country is underperforming comparing to its innovation potential, three actions
were advocated: unleash increased competition, strengthen efforts to create and commercialise
knowledge, the foster more inclusive innovation.
Innovation means different things to different people. The apple falling on Newtons
head represents one perception of innovation while Archimedes jumping out of his bathtub symbolises
another; the Indian villager who peddles hard to pump water from well represents a third. Indeed, all
these are examples of innovations. The word is sometimes used as a substitute foe, or interchangeable
with, invention and ingenuity innovation mean to me.
An invention is the first occurrence of an idea.
An innovation is a programmed implementation of an innovation.
Ingenuity is an intuitive form of innovation, in so far it is not programmed.
Innovation is about context and implementation

Innovation is about implementing an idea, making in meaningful and useful to society. Even
commercializing it. Hence innovation needs to be viewed in context. It would be considered odd if I
suggested that opening a teashop is an innovation.
Innovation does not only spring from spending billions of dollars understanding the
consumer; innovation is about creating a product, a service or a process that is difficult to replicate.
You can be modestly innovative and consciously so, or you can be highly innovative and
unconsciously so. The best example I know is the Toyota lean production system.
The Indian genotype id unique, especially so in its ability to innovate. I attribute this to many
factor, the principal one being our plurality in terms of culture, religion, language and more. We tend to
take many things around us for granted when it comes to innovation. If there is a company with plenty
of R&D expenditure, we think it must be innovative. Same with patents, but we hardly ever
acknowledged business model innovation, let alone recognize them. That is unfortunately because
innovation. Like spirituality, is a basic instinct? And it manifests itself clearly when it comes naturally.
CONCLUSION
An organization does not innovate-its people do.
To innovate we must understand and at times even embrace failures. After all failures
is not the opposite of success in all circumstances.
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CONTEMPORARY ISSUES IN GLOBAL BUSINESS
A.Anitha Assistant Professor, Department of Management, Sree Saraswathi Thyagaraja
college,Pollachi
A.Meenakshi Lecturer, Department of Commerce, Avinashilingam University, Coimbatore
ABSTRACT
Banking industry is a highly regulated industry with detailed and focused regulators. Each
regulatory agency has their own set of rules and regulations to which banks and thrifts must adhere.
The changing economic environment has a significant impact on banks and thrifts as they struggle to
effectively manage their interest rate spread in the face of low rates on loans, rate competition for
deposits and the general market changes, industry trends and economic fluctuations. It has been a
challenge for banks to effectively set their growth strategies with the recent economic market.
The banking industry is far one of the most difficult type of business to manage. It is simply
the business where stocks are hard to analyze, unstable and most of all, clients are demanding. We have
to realize that in the current situation of recession, the banking industry is being hit hard. This is mainly
because money circles around banks. Companies would not be able to move if it wasnt for them.
However, there are also many major and as well as minor issues that are going to be discussed further.
One of the major problems of banks is money laundering. It is simply the practice of engaging
in financial transactions to conceal the identity, source, or destination of illegally gained money.
We are in the new age and as we all know, technology plays a big part in every aspect of
businesses around the world. New technologies are always being introduced that is why banks should
also focus on finding these technologies to help them cope up.
Indian Banking Sector Key Statistics

The banking sector in India is well capitalised, with capital ratios being above the global
average. The average tier-1 Capital Adequacy Ratio (CAR) of the Indian banking industry is above 10
per cent compared to the Basel III norm of 8.5 per cent including the contingency buffer. Moreover, the
Reserve Bank of India, in its Financial Stability Report (FSR) has also asserted that the sector remains
well capitalised with both core capital adequacy and leverage ratios at comfortable level.
Efficient internal capital generation, fairly active capital markets, and strong support from the
government ensured good capitalisation for most banks. The overall CAR reached 14 per cent as on
March 31, 2011. High levels of public deposits also ensured a comfortable liquidity profile
While the Indian banking sector is characterised by the presence of a large number of players,
top 10 banks accounted for a significant 57 per cent share of the total credit as on March 31, 2011.
ISSUES IN BANKING SECTOR

I. Globalization of banking sectors
Traditionally, banks have economic functions including issuance of money, netting and
settlement of payment, credit intermediation, credit quality improvement and maturity information.
According to Holley (1997, p. 2), international commercial banks are now having an expanded role as
opposed to their traditional roles. That traditional role basically refers to financing developing
countries. However, commercial banks were never intended for long-term financing of capital projects.
It is in this sense that commercial banks are gaining reputation nowadays as commercial banks aid
transactions despite the borders.
Global integrationism is now regarded as the globalization of financial services including

banking services. According to Berger et al (2002) basic to all banks are both nationality and reach.
There are specific aspects contributing to the globalization of banking services such as technology,
increasingly complicated customer requirements and needs and sustainable growth brought by
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competition. In the last three decades, many states and government embrace the idea of lifting
important international banking regulatory barriers, making possible the transfer of cash as well as
information via technology from geographically dispersed locations (Berger 2003).
II. Risk management

Risk is inherent in any commercial activity and banking is no exception to this rule. Rising
global competition, increasing deregulation, introduction of innovative products and delivery channels
have pushed risk management to the forefront of todays financial landscape. Ability to gauge the
risks and take appropriate position will be the key to success. It can be said that risk takers will
survive, effective risk managers will prosper and risk averse are likely to perish. In the regulated
banking environment, banks had to primarily deal with credit or default risk. As we move into a
perfect market economy, we have to deal with a whole range of market related risks like exchange
risks, interest rate risk, etc. Operational risk, which had always existed in the system, would become
more pronounced in the coming days as we have technology as a new factor in todays banking.
Traditional risk management techniques become obsolete with the growth of derivatives and off-
balance sheet operations, coupled with diversifications. The expansion in E-banking will lead to
continuous vigilance and revisions of regulations.
Building up a proper risk management structure would be crucial for the banks in the future.
Banks would find the need to develop technology based risk management tools. The complex
mathematical models programmed into risk engines would provide the foundation of limit
management, risk analysis, computation of risk-adjusted return on capital and active management of
banks risk portfolio. Measurement of risk exposure is essential for implementing hedging strategies.
III. RURAL AND SOCIAL BANKING ISSUES

The banking system is expected to reorient its approach to rural lending. Going Rural could
be the new market mantra. Rural market comprises 74% of the population, 41% of Middle class and
58% of disposable income. Consumer growth is taking place at a fast pace in 17113 villages with a
population of more than 5000. Of these, 9989 villages are in 7 States, namely Andhra Pradesh, Bihar,
Kerala, Maharashtra, Tamilnadu, Uttar Pradesh and West Bengal. Banks approach to the rural lending
will be guided mainly by commercial considerations in future.
Since the second half of 1960s, commercial banks have been playing an important role in the
socio-economic transformation of rural India. Besides actively implementing Government sponsored
lending schemes, Banks have been providing direct and indirect finance to support economic activities.
Mandatory lending to the priority sectors has been an important feature of Indian banking. The
Narasimham committee had recommended for doing away with the present system of directed lending
to priority sectors in line with liberalization in the financial system. The recommendations were,
however, not accepted by the Government. In the prevailing political climate in the country any drastic
change in the policy in this regard appears unlikely.
Commercial Banks, Co-operatives and Regional Rural Banks are the three major segments of
rural financial sector in India. Rural financial system, in future has a challenging task of facing the
drastic changes taking place in the banking sector, especially in the wake of economic liberalization.
There is an urgent need for rural financial system to enlarge their role functions and range of services
offered so as to emerge as "one stop destination for all types of credit requirements of people in
rural/semi-urban centres.
Barring commercial banks, the other rural financial institutions have a weak structural base
and the issue of their strengthening requires to be taken up on priority. Co-operatives will have to be
made viable by infusion of capital. Bringing all cooperative institutions under the regulatory control of
RBI would help in better control and supervision over the functioning of these institutions. Similarly
Regional Rural banks (RRBs) as a group need to be made structurally stronger. It would be desirable if
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NABARD takes the initiative to consolidate all the RRBs into a strong rural development entity.
IV. Human resource management

Human resource management is seen as part of the movement away from concentration on
unions and collective bargaining, to an emphasis on staff as individuals. Behind all this is a belief that
it will release greater commitment from employees although one has to be careful to examine the extent
to which human resource management is genuinely concerned with creating a new equal partnership
between employer and employed, or are they really offering a convert form of employee manipulation
dressed up as mutuality (Fowler, 1987, p.3). Hence it is significant that human resource management
was, particularly in the USA, initially associated with non-union companies.
E- Banking as we take it today is a very superficial phenomenon. A very Complex network

commitment of thousand of people, extensive market research, huge technological structure, series of
integrated computers and many more things stands behind the product that has made job of a banker
and life of a bank client easy as well as mechanical. Here, I will highlight some important issue from
both the producer prospect.
Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer
need to visit branches for their day to day banking transactions like cash deposits, withdrawals, cheque
collection, balance enquiry etc. E-banking and Internet banking have opened new avenues in
convenience banking. Internet banking has also led to reduction in transaction costs for banks to
about a tenth of branch banking.
Despite the radical new trends emerging, banks will continue to play their role as trust-
enablers in all commercial activities. Their role as financial intermediaries and payment enablers will
also continue, but they will be outsourcing all non-core activities to specialised service providers and
insource opportunities where they have a saleable value proposition. The transfer of money will not
generate profits-it will, however, be the basis of other services that banks will provide. The level of
integration that banks achieve with their customers supply chain will determine profitability.
As a conclusion, banks are looking for new ways to make the banks are safer, convenient
and better place for the customers. New Information Technology solutions can achieve this by
integrating the different modules within the bank. This can reduce costs, increase profit and customer
satisfaction and even employee motivation.
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G-EDGE GREEN EDGE EMERALD DOMAIN IN GREEN ENVIRONS
Mr.M.Thambidurai, Asst.Prof, Professional School of Management.
INTRODUCTION
Environmental issues gained importance in business as well as in public life throughout the
world although environmental issues influence all human activities, few academic disciplines have
integrated green issues into their literature. As society become more concerned about the global
warming , businesses have begun to modify their behaviour in to address societys new concerns
So in this scenario of global concern corporate houses has taken green-marketing as a part of
their strategy to promote products by employing environmental claims either about their attributes or
about the systems, policies and processes of the firms that manufacture or sell them. Clearly green
marketing is part and parcel of overall corporate strategy; along with manipulating the traditional mix
(product, price, promotion and place). It require an understanding of public process. So we can say
green marketing covers a broad range of activities.
The term green marketing came into dominance in the late 1980s and early 1990s, began in
Europe in the early 1980s when certain products were found to be harmful to the environment and
society as a whole. Consequently new types of product were created, called green products that
would cause less damage to the environment.
According to the American marketing association ,green marketing is the marketing of

product that are presumed to be environmentally safe. Thus green marketing incorporates a broad range
of activities ,including product modification ,changes to the production process, packaging changes, as
well as modifying advertising yet defining green marketing is not a simple task where several meanings
intersect and contradict each other, an example of this will be the existence of varying social,
environment and retail definitions attached to this term.
Other similar terms used are environmental marketing and Ecological marketing . Thus
green marketing refer to holistic marketing concept where in the production, marketing consumption
an disposal of product and services happen in a manner that is less detrimental to the environment with
growing awareness about the implications of global warning non-biodegradable solid waste, harmful
impact of pollutants etc., both markers and consumers are becoming increasingly sensitive to the need
for switch in to green products and services. While the shift to green may appear to be expensive in
the short term, it will definitely prove to be indispensable and advantageous, cost wise too, in the long
run .
WHY CORPORATE NEED GREEN MARKETING

It is really scary to read these pieces of information as reporting in the times recently :air
pollution damage to people, crops and wildlife in he Us totals of dollars each year ,.more than 12 other
studies in the US, Brazil, Europe, Mexico, South Korea and Taiwan have established links between air
pollutants and low birth weight premature birth still birth and infant death.
As resources are limited and human wants are unlimited ,it is important for the markers to
utilize the resources efficiently .without waste as to achieve the organizations objective. so green
marketing is inevitable.
Corporate may choose to green their systems, policies and products due to economic pressures from
their consumers, business partners , regulators, citizen groups and other stakeholders (non market
environment).
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SOME OTHER REASONS MAY INCLUDE:
1. Some scholar claim that green policies /products are ;green policies can reduce costs; green
firms can shape future regulations and reap first mover advantage.
2. Now a days firms are becoming more concerned their social responsibilities (S.R). they have
taken S.R as a goods strategic moved to build up an image in the heart of consumers. Even
the socially responsible firms are getting leverage ,whenever they intend to foreign countries
.there are example of firms like ITC,HLL(serf-excel)who are heaving promoting them as an
environmentally concerned firms, where as there is example of firms who are working in this
direction in a silence manner like coca-cola ,who have invested corers of money in various
recycling activities ,as well as having modified their packaging to minimize its
environmental impact. While being concerned about the environment coke has not use their
concern marketing tool
Another big organization who is also working in this field without calming any credit is Walt
Disney world (WDW). So we can see that firms in this situation have taken two perspectives;
(1) They are using green marketing and marketing tool;
(2) They are working in this field without promoting the fact..
3. Change in customers attitude: With increasing concern about environment ,consumers
attitude towards firms having green policies or green products are motivating factors.
4. Governmental pressure: In all most all civilized countries Govt. Has the low protect the
consumers and the environment from the harmful goods or by-products and ensure through
law that all of consumers have the ability to evaluate the environmental composition of
goods .Govt established several regulations to control the amount of hazardous waste
produced by firms and many by-products of production are controlled through the issuing of
various environmental licences, thus shaping the behaviour of organization towards more
socially responsible one. In some countries govt. Has designed guidelines in such a way that
consumers would have appropriate information which enable them to evaluate organisations
environmental claims
MARKETING MIX OF GREEN MARKETING:

when companies come up with new innovations like eco friendly products, they can
access new markets, enhance their market shares, and increase profits. Just as we have 4Ps
product prices, place and promotion in marketing we have 4ps in green marketing too, but
they are a bit different. They are buttressed by three additional Ps, namely people, planet and
profits.
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Planet
7. Profit
STRATEGIES
The marketing strategic for green marketing include.
Marketing Audit (including internal and external situation analysis)
Develop a marketing plan outlining strategic with regard to 4Ps.
Implement marketing strategies.
Plan result evaluation
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CHALLENGES AHEAD:
Green products require renewable and recyclable material, which is costly.
Requires a technology, which requires huge investment in R/D.
Water treatment technology, which is too costly.
Majority of the people are not aware of green products and their uses.
Majority of the consumers are not willing to pay a premium for green
products.
SOME PROBLEMS WITH GOING GREEN
Although a large number of firms are using green marketing, there are a number of potential
problems which need to be addresses. One of the main problem is that firms using green marketing
must ensure that their activities are not misleading to the consumers or the industry, and do not breach
any of the regulations or laws dealing with environmental marketing . in short, green marketing claims
of a firm must.
Clearly state environmental benefits ;
Explain environmental characteristics;
Explain how benefit are achieved;
Ensure comparative differences are justified;
Ensure negative factors are taken into consideration; and Only use
meaningful terms and pictures.
CONCLUSION
Our understanding to green marketing is still in its infancy, perhaps due to the
multidisciplinary nature of the enterprises.
The effective green marketing requires applying good marketing principals to make green
products desirable for consumers. Now the question that remains, however, is, what is the future of
green marketing? Historically green marketing has been a misunderstanding concept. Business scholars
have viewed it as a fringe topic, give that environmentalism acceptance of limits and conservation
does not mesh well with marketings traditional axioms of give customers what they want and sell as
much as you can in practice green marketing myopia has lead to ineffictive products and consumers
reluctance. Sustainability, however, will dominate the 21st century commerce.
A green marketing approach in the product are promotes the intergration of environmental
issues into all aspects of the corporate activities;from stratergy formulation,planning,re-engineering in
production process and dealing with customers so to remain comprtitive within the chanllenge thrown
by the environment protectionist the companies will have to find answer through their marketing
strategies, product&srvice redesign, customer handling etc. in this endeavour the companies may go for
new tecnologies for handling waste, sewage and air pollution; it can go for product standardization to
environmnenatally safe products; by truly natural products.
In this regard the companies should be concerced with what happens to a product during and
after its useful life. Companies may manifest this concern through experimentation with ways to
reassess and redesign the product life siages. Life cycle reassessment fouses on environmental
consideration in product development and design, inculding energy and material inputs and out-put in
production and disposal of products. We would then be able to manage the life stages of a product in an
environmental friendly and eco-efficient manner.
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SOCIAL SUPPORT AND WORK-FAMILY BALANCE -AN OVERVIEW
Dr.N.Brindha, Associate Professor, Department of Management Studies, Karpagam College of
Engineering, Coimbatore 32.
B.Sharathbabu II MBA, Karpagam College of Engineering, Coimbatore 32.
INTRODUCTION
Employees today are more likely than ever to be concerned with how to balance their work
and family lives. Competing demands, which arise between work and personal roles, often result in
conflict for employees. Research that examines work-family conflict has advanced over the last decade
and has led to the development of theoretical models, empirical studies, and organizational sponsored
work-family initiatives.
Changes in the demographic make-up of the workforce have been the primary impetus for the
increased focus on work and family issues. The entry of women, dual earner couples, and single
parents in the workforce underlie some of the most significant trends (Googins, 1991; Googins, GriYn,
and Casey, 1994; Parasuraman, and Greenhaus, 1997; Zedeck, 1992). Simultaneous to these changes,
businesses are experiencing rapid changes. Increased global competition, focus on customer service,
and technological advances (which increase an employee s access to work) contribute to stress for
both employees and employers in this highly competitive business world (Parasuraman and Greenhaus,
1997).
Research on work-family conflict has been conducted primarily in Western industrialized

nations, most notably the United States, but economic and business globalization has made work-
family issues increasingly important in developing countries. And because work and family issues are
intricately related to cultural beliefs, values, and norms (Lobel, 1991; Chein, 1984), multinational
companies need to be aware of cultural influences on their operations and to develop culturally
appropriate strategies to deal with work-family conflict and its effects.
WORK-FAMILY CONFLICT
Greenhaus and Beutell defined work-family conflict as follows: "It is a form of inter-role
conflict in which the role pressures from the work and family domains are mutually no compatible in
some respect. That is, participation in the work (family) role is made more difficult by virtue of
participation in the family (work) role" (1985: 77). This definition delimits the scope of work-family
conflict in a number of ways. First, the term "work-family" refers to roles within the work and family
domains rather than to the domains themselves. Second, mere differences in values, social
relationships, and requirements between work and family lives do not automatically constitute conflict.
Third, the major concern is those role conflicts that cause problems of role participation. Greenhaus
and Beutell (1985) identified three major types of work-family conflicts.
The first is time-based. Time spent on role performance in one domain often preclude time
spent in the other domain. Time expended on role performance may deplete energy or generate strain.
The second work-family conflict, strain-based conflict, arises when strain in one role affects one's
performance in another role. The last type is behavior-based conflict, which refers to incompatibility
between the behaviors patterns that are desirable in the two domains. In this cross-national study, we
focused on time based conflict, recognizing that the concept also included time-induced strain
(Greenhaus & Beutell, 1985).
The conceptual specificity of time based conflict allowed us to better measure and validates
the construct in different social, economic, and cultural systems. Drawing on recent distinctions
between work-to-family conflict and family to- work conflict (e.g., Frone, Russell, & Cooper, 1992;
Greenhaus & Parasuraman, 1994; Gutek, Searle, & Klepa, 1991), we included both directions in the
conception of work-family conflict but did not decompose them into different constructs since we were
concerned with the sources rather than directionality of conflict.
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DETERMINANTS OF WORK-FAMILY CONFLICT:
Work Role Conflict:

Work-related role conflict is the lack of clarity in responsibilities, and the ambiance
confusions in the delegation of work to the individuals or the group.
Family Role Conflict:Family-related role conflict also like the work place, lack of clarity in the
responsibility of the family commitments or expecting others to take care of the same due to time
demands or over work, load etc.,
Work Time Demands. Work-related time demands were the over work load, and time limited targets
in the task completion.
Family Time Demands. Family-related time demands were adapted from the
work-related role overload in order to measure perception of time demands
from the family domain in a manner similar to the work domain.
Work Social Support. Their supervisors, coworkers, and subordinates who are in the interpersonal
relationship with them, and sharing the individuals commitments.
Family Social Support. The quality of the relationship subjects have with their spouses, families, and
friends.
Job Involvement. The level of commitment with the task completion and quality in the output with in
the given time duration of the work.
Family Involvement. The Commitment towards the responsibility being a family man/ women, with
their spouse, children and the elders.
Job Satisfaction. The job satisfaction is an overall measure of the degree to which the individual is
satisfied with his/her job.
Family Satisfaction. Similar to job satisfaction, satisfaction with family of an individual with all his
completion of different roles and responsibilities.
SOURCES OF SUPPORT
Sources of support provide a "buffering effect" that helps individuals deal with work-family
conflict (Greenhaus & Beutell, 1985: 86; Singh et al., 1998). Support may he socio emotional to the
extent that it helps individuals emotionally cope with work-family conflict (Singh et al., 1998], or
resource- based to the extent that it provides resources to help individuals cope with work-family
conflict (George & Brief, 1989). sources of support: an individual's coworkers, community, and
household financial resources.
Co-workers.
Because an individual's work group is an important social group, the individual's relationships
with work group members can be a source of socio emotional support that may help him or her deal
with work-family conflict (Stephens & Sommer, 1995). Research on the effects of work group
composition on interpersonal relationships has shown that individuals in the minority in their work
groups in terms of gender are less likely to have supportive relationships with coworkers than are
individuals who are part of the majority gender. Therefore, being in a gender minority may reduce the
availability of support from coworkers. Without such support, which could serve to buffer the negative
impact of work-family conflict, an individual is more likely to experience lower career satisfaction as a
consequence of work-family conflict. Therefore, the majority of the study reveals that work-family
conflict would be found to have a greater negative effect on the career satisfaction of individuals who
are in the minority gender in their work groups.
Financial resources.
Individuals with greater financial resources are better able to afford a variety of servicesfor
instance, a nanny or child care that may help them cope with potential work-family conflicts that
otherwise could detract them from investing time and energy into their careers (Blau et al., 1998;
George & Brief, 1989; Gordon & Whelan, 1998). Given the availability of such resource- based coping
mechanisms to individuals with greater financial resources, the studies says, these individuals to be less
531
likely to have work-family conflict impede their ability to meet career demands, such as those
associated with travel, relocation decisions, and longer work hours (Blau et al., 1998; Schneer &
Reitman, 1993). As such, higher levels of financial resources are likely to dampen the negative effects
of work-family conflict on an individual's career and enhance his or her potential for career
satisfaction.
Co-workers
Social
Work-
Community Support
Family
Balance
Financial
Resources
CONCLUSION
The term Work-Family Conflict has been analyzed with various determinants by
different researchers in past two decades. In most of the western countries, the work culture, and the
society where the individual belongs to, life style which they adopt and the financial supports are the
main factors which are positively identified as social support. It has two faces as work related social
support and the family related social support with its respective domains. These only tinted here with
reference to various authors supported implications.
This WORK-LIFE CONFLICT can be noted as WORK LIFE BALANCE, when the work
ambiance strategies and interpersonal relationships, society and the Family members become
significantly identified and support an individual with his work and family determinants. So the Social
Support alone can rename the CONFLICT as BALANCE in this regard.
REFERENCE
1 Blau, G.J. (1985). A multiple study investigation of the dimensionality of job

2 Brannen J., Mothers and Fathers in the Workplace, The United Kingdom, in HassL., P.Hwang
and G.Russel (Eds.) Organisational Change and Gender Equity, London: SAGE.
3 Carlson, D.S., and Perrewe P.L. (1999). The role of social support in the stressor-Strain
relationship: An examination of work-family conflict, Journal of management, Vol. 25(4),
pp. 513-540.
532
CORPORATE SOCIAL RESPONSIBILITY AND THE BEVERAGE ALCOHOL
INDUSTRY
Ms Prasanthi, Asst Prof. & Ms.SeemaNazneen,AsstProf, Department of Business Management.
Lalitha P.G College, Venkatapur (V), Ghatkesar (M). R.R District. Hyderabad. Andhra Pradesh.
Abstract
The issue of corporate social responsibility is a complex one for any industry, not the least so
for the beverage alcohol industry. A systematic integration of CSR into their business practices can
make a positive impact on their economic, social, and environmental performance. CSR activities
contribute to a wider development of alcohol policies, promote responsible drinking patterns, and target
alcohol misuse.
As businesses, beverage alcohol companies must be accountable to their shareholders who,

among other legitimate objectives, seek a financial return on their investment. Companies recognize
that they are also accountable to a wider range of stakeholders, including consumers, employees,
communities, media, and critics. In short, stakeholders are those individuals and groups with an
interest in or affected by a companys products, operations, or the nature of its business
Companies, therefore, are deemed to be accountable for their actions, not just formally to their
owners but also in less well-defined ways to this much wider group of stakeholders. This view has
become central to the management of social and community issues. Businesses need to act honestly
and ethically with regard to their internal management and auditing, but corporate social responsibility
also requires them to focus on their wider responsibilities.
The beverage alcohol industry should acknowledge the fact that, although their products can
offer considerable personal pleasure and social benefit, they can also cause serious personal and social
harm if consumed irresponsibly. They should also acknowledge that preventing misuse of their
products is in their long-term strategic interest and is therefore consistent with their economic
objectives, while turning a blind eye on misuse is ultimately bad for business. However they recognize
that long-term growth is best built on an ethical and responsible foundation. Their social concern is
also on the realization that the misuse of alcohol can affect their business adversely. Appropriately, the
industry has initiated many programs to target alcohol misuse and related harm, to encourage
responsible drinking, and to educate consumers. Many of these initiatives have been developed by the
industry in partnership with others
Introduction:
Increased scrutiny on the part of the general public, media, and government has warranted a
reexamination of corporate responsibilities, standards of accountability, the company's role in its local
and extended community, and its ethical position in our society and culture. Corporate social
responsibility is an extremely broad idea which attempts to control the impact that business has on
society, and ensure that this is at least benign, if not actually beneficial. It encompasses ethical
marketing practices, ecological considerations and respect for both the individual and society. Interest
in CSR is growing among alcohol companies. Several of the key players are actively involved in
setting up their own strategies and becoming members of organizations whose goal is to promote and
encourage CSR
Limitations of the Study:-

It is very sad and disheartening that inspite of being CSR a more important integral part of
policies of the company there is no much of published and released data of the companies corporate
social responsibility. The writer has depended heavily on secondary data.
533
Indian Alcohol Beverage Industry an Overview:-
India is one of the largest producers of alcohol in the world and there has been a steady
increase in its production over the last 15 years, according to new statistics. India is a dominant
producer of alcohol in south-east Asia, with 65% of the total share, and contributes to around 7% of the
total alcohol beverage imports in the region. More than two-thirds of the total beverage alcohol
consumption in the region is in India, according to figures in the Alcohol Atlas of India. There has been
a steady increase in the country. Production doubled from 887.2 million liters in 1992-93 to 1654
million liters in 2000 and tripled to 2300 million liters in 2008.
Apart from providing strong growth, India also provides attractive profit margins due to the
consolidated nature of the industry a comparison between China and India, for example, reveals that
the Chinese beer market is marked by intense competition, with several players being marginalized. In
China there are about 400 brewers, of which the top 10 account for only 45 per cent of the market. This
has resulted in low profit margins for the Chinese beer players. In contrast, the top two beer players in
India account for about 75 per cent of beer sales in India and the industry stands a chance to see more
consolidation in the near future. The effect of this consolidation can be seen in the fact that beer prices
in India rarely go down with the competitive pressures of new product or brand launches. In the past,
whenever beer prices have gone down, it has been due to either the lowering of duties by the
government or the deregulation of distribution (leading to lower margins for the distribution channel
partners). In neither scenario have the margins or revenues of beer manufacturers been affected.
Per capita consumption in India is hovering around a measly 0.5 litres per annum. These figures pale
into insignificance if one compares them with those of Czech Republic that has the highest per capita
consumption of 156.9 litres per annum
Apart from Kingfisher, and Foster's Beer, the other brands in the Indian market are Carling
Black Label, Carlsberg, Dansberg, Golden Eagle, Guru, Maharaja Premium Lager, Haake Beck,
Haywards 2000 Beer, Haywards 5000, Haywards skol, Flying Horse Royal Lager, Taj Mahal,
Heinekin, Hi-Five, Ice, Kingfisher Diet, Kingfisher Strong, Kirin, KnockOut, Legend, London Diet,
London Draft, London Pilsner, Royal Challenge, San Miguel Lager, Sand Piper, Strohs and Zingaro.
The major brands which belong to large groups in the industry (apart from UB) are Shaw Wallace -
Royal Challenge Premium Lager, Haywards 2000 Premium Lager, Haywards 5000 Super Strong, Hi-
Five and Lal
Reasons for the Growth of Industry:-

The Indian beer market was estimated to be 6.7 million hectoliters (hl) in 2002-03. Beer
consumption has been growing rapidly at a CAGR (Compound Annual Growth Rate) of 7 per cent over
the last 9 years, while growth in 2002-03 was 11 per cent.
The Indian beer market has been growing rapidly over the last 10 years, due to the positive
impact of demographic trends and expected changes, like:
Rising income levels: India is home to nearly one-sixth of the global population and is one of the most
attractive consumer markets in the world today. Various research studies have shown that a rise in the
income levels has a direct positive effect on beer consumption. The National Council for Applied
Economic Research (NCAER) projects India's 'very rich', 'consuming' and 'climbers' classes to grow at
a CAGR of 15 per cent, 10 per cent and 2 per cent respectively. With this growth in income levels,
Indian beer consumption is expected to continue growing, at the very minimum, at the growth rates
witnessed in the last decade.
534
Issues related to governance:
12. Companies should look to providing more transparency and accountability in terms of the selection
of board members, remuneration, links between remuneration and performance, diversity of the board
and decision making processes
13. Alcohol companies should ensure a high level of transparency in terms of the financial support
provided for industry groups that in turn lobby national governments for changes in alcohol policies
14. Companies should put in place initiatives and get involved in collective action to raise corporate
integrity, especially in relation to corruption and bribery
NGOs Working for Beverage Industry:-
ICAP- International Center for Alcohol Policies

In 2010, the International Center for Alcohol Policies became the lead implementing
organization for Global Actions on Harmful Drinking, a consortium of initiatives dedicated to helping
reduce the harmful use of alcohol, with an emphasis on low and middle-income countries. The effort is
the result of a collective commitment made by chief executives of major international alcohol
producers to address the issues of driving under the influence of alcohol, self-regulation of alcohol
advertising and marketing, and noncommercial alcohol.
AIDA- All India Distillers Association

In 1953, an all India body of distillers was constituted which was baptized All India Distillers
Association. During the Intervening four decades this association has not only grown in size but has
also widened its sphere of activity. At the time of its birth, the association had a membership of only
fifteen whereas the fraternity has now swelled to close to two hundred. The constituents of the
association control more than 80% of the total distillation capacity of the country. Besides, ten state
associations have also been constituted in Maharashtra, Gujarat, Karnataka, Tamilnadu, Andhra
Pradesh, Madhya Pradesh, Bihar, Uttar Pradesh, Punjab and Haryana, which are all affiliated to the
parent body.
AIDA is the leading business support organizations for the alcohol & liquor industry in India
and maintains the lead as the proactive business solution provider through continuous interaction at the
constituent members level and various government agencies level. It is therefore now the largest and
the oldest apex organization of Indian Alcohol Industry which stands for quality, industry,
Government- Society partnership and to enhance the quality and productivity of the distillery/ alcohol
industry on the whole. AIDA today espouses the shared vision of the Alcohol / Distillery industry in
the country and speaks directly or indirectly for the entire industry.
535
EMERGING TRENDS IN GLOBAL BUSINESS
Charith. B, Sujata Raje and Vinoth. S Assistant Professor, Guru Nanak College, Chennai
ABSTRACT
HRM is concerned with the peoples dimension in organization. Hence the organization is
very much responsible for establishment of Personnel Department into Human Resource Department
(HRD). The functions that are undertaken by HRD are to recruit, select, train and develop members for
an organization. Today with the company having a global mix of the employees, understanding of the
employees is a tough task in the hands of the HRD.
The paper has further discussed the emerging trend of the HRD like talent management,
absconding employee, Balanced Scorecard, outsourcing, and six sigma. Human Resource Management
is a process of bringing people & organization together, so that the goals of each other are met. Indian
organizations are also witnessing a change in systems, management cultures and philosophy due to the
global alignment of Indian Organization. As globalization has been a challenging issue for the
organization because international human resource management has placed great emphasis on number
of responsibilities & functions, such as relocation, orientation, translation services to help employees
adapt to new and different environment outside their own country. Hence forth, the necessary attention
must be taken by HR Managers in formulating policies, motivation, maintaining the relationship and
stressing on quality in administration. HR does this in a measurable way. HR people need to do a lot
thing. At the end HRD plays the role of initiator, planner and executor in the every organization.
INTRODUCTION
The business world is changing at bullet-train speed technology, the global economy,
increasing regulatory scrutiny, the looming talent crisis, the recognition that mental illness is
dramatically affecting the workplace. All of
these are having a huge impact on the HR profession. They want you to get out of the day-to-day
administration - while still making sure everything is done perfectly, mind you. They want you to
measurably contribute to the top-line and the bottom line, and help mitigate risk. There are ten major
trends that you need to be aware of as your role evolves to meet these challenges. Lets start with the
most obvious.
1. The Changing Role of the HR Professional

We need to put the human back into human resources. Employees are humans, not
commodities, and HR departments have to start seeing them
differently. With the current push towards strategies that engage employees, attract top talent, and
contribute to the bottom line, this change is imperative. We need to stop whining about being at the
table. These days, almost every book or article you read about the role of HR talks about HR needing to
be at the table or to be more strategic.
Its my observation that in almost every respected company, HR is at the table. So for most
HR leaders, the question is not how do you get to the
table. It is now that you are at the table, how do you best contribute to the
success of our organization? How can you be taken seriously at the table?
Clearly the first step is to make sure that the organizations HR practices are effective. The practices
should create competitive advantage by building strong organizations, strong leaders and managers,
and strong teams and employees. But few HR departments do this in a measurable way. CEOs are
demanding that HR stop giving lip service to strategic performance and find the metrics that prove they
are contributing to the growth and performance of the company through effective people management.
Increasingly, more is being expected of HR practitioners than just being good at HR. They need to
broaden their skill-sets so that they can sit at the executive table and understand as much about the
business as the other leaders.
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2 - The War for Talent
The most important corporate resource over the next 20 years will be talent: smart,
sophisticated business-people who are technologically literate, globally astute, and operationally agile.
Talent really does matter for example top software developers are more productive than an average
software developer not by 10x, 100x, or even 1000x but 10,000x (Nathan Myhrvold, former Chief
Scientist, Microsoft)
Top organizations are moving beyond the vanilla employer of choice concept to a more
rigorous strategy of attracting and retaining the right employees through branding.
The key to attracting and retaining scarce skills is to be, and be seen to be, a first-tier employer
that can meet the needs of high potential/high performance employees. Traditional workforce planning
is being replaced by talent strategies and skills gap analysis. Once they determine the gap, it becomes
clear what talent they need to hire, to layoff, or to develop or transfer internally.
Now is not the time to sit in the ivory towers thinking on the subject of whom your major
contributors are? You need to dig deep into the organization to identify the top talent, the high
performers in every aspect of your business. In all likelihood its not the people who are the most
politically astute or the most popular. Traditional marketing practices are going to have to be applied to
recruitment. Employer branding and unique selling points with a strong differentiator are imperative.
Look at strategies such as changing your employer brand from the groan-inducing were a big
successful company to a company delivering on the promise of continuous learning, work-life balance,
personally-fulfilling roles and innovative reward and recognition programs.
Some recruitment effectiveness strategies include:
Employment branding
Ongoing recruiting, not stop-start
Nurturing relationships with strong candidates, even though no jobs for them are currently
available
Referrals this is particularly effective with Generation Yers. They do everything through
leveraging their networks. They are always connected using mobile phones, text messaging,
instant messaging, blogging or email.
Realistic job previews
Managers trained in interviewing (so that they will create a favorable impression of company)
Selection criteria Can they do the job? (Competencies) Will they do the job? (Motivation)
Can we offer them what they are looking for? (Cultural Fit)
Rapid response and follow up Hard to hire skills are in high demand
Debrief candidates as quality control monitoring for recruitment process
Most candidates will not get jobs but they might be current or future customers, hence the
importance of handling the rejection process effectively.
Recruitment, while strategic, involves a lot of administration. Now is the time to outsource
some of those tasks to organizations that have the people, technology and process so that you can
decrease time-to-hire, increase the quality of your candidates and reduce your expenseswhich leads
into our next point.
3. Outsourcing of HR Functions: The Virtual HR Organization

If you are an HR professional I doubt that you got hired for your ability to process employee
information changes, sort resumes or process the payroll every other week. CEOs expectations of their
senior HR people have changed significantly. The HR executive is expected to deliver value in areas
like organizational effectiveness, talent management, change management, leadership development,
succession planning, merger integration, strategic compensation. If you read job postings for senior HR
positions, these items are listed time and time again as the key expectations for HR leaders. The
537
primary benefit of HR outsourcing is that it will allow you to keep your job because it will enable you
to tackle these more strategic issues! HR professionals need to embrace outsourcing. They cant be
afraid of it. Outsourcing of HR transactions is a proven way to reduce costs and get access to a higher
level of service.
There are five good reasons why companies outsource their HR services:
1. Cost reduction economies of scale, automation and process improvement, especially for
transactional work
2. Focus allows HR to allocate time to strategic, not transactional, concerns
3. Regulatory compliance minimize or transfer legal risk to the outsourcer and obtain
specialized regulatory expertise.
4. Access to best technologies mutual benefits to ensure technology is continually upgraded
5. No available internal resources provides an HR capability for a company that does not have
one, cannot staff it, or cannot afford a full-time resource, but has reached a size and complexity
where expertise is required.
However, all that being said, the administrative, transactional aspects of HR are key. What
you need to do is identify them now whether its your payroll, your Employee Assistance Programs,
your recruitment or your HRIS systems. Then you need to go out into the marketplace and find
outsourcing partners who can help take them off your hands. Its the only way you are going to become
more strategic.
Conclusion
HR professionals need to step up to these challenges. If you dont, your C-level executives
will make other functional areas responsible. As a COO, my advice to you is: Think like marketers.
Establish an employer brand. Communicate the employer brand. Sell the employer brand. Dont just
preach the benefits of continuous learning to your employees. Be continuous learners. Be at the
forefront of the latest trends and requirements and react to them quickly. Acquire a broader range of
business skills, in particular, think like a CFO. What are the metrics that you can develop that prove to
the business the impact you are making. Get rid of the stigma around mental health issues.
There is no workplace issue more important to your organization, to society, and to

productivity. Anxiety and depression in the workplace must be dealt with or its going to cost your
organization in lost productivity and a lot of money. Do real talent management know who your Stars
are, nurture them, develop them, and figure out what support they need to thrive in your organization
because if you dont another company will. Start working on an HR outsourcing strategy today.
Otherwise, you wont have time to do the rest. Many aspects of HRM are affected both by
globalization and by differences in national culture. Evans and Doz have described the managerial
challenge in complex international organizations in terms of harmonizing seemingly opposing forces
rather than making binary either/or choices. Belbins work provides another useful frame in which to
consider the impact of culture on various aspects of HRM. The change of HR practices in Japanese
companies seems to be slow and incremental, carefully avoiding traumatic breaks with the past.
Japanese managers have a strong sense of corporate obligation to provide jobs, income and security.
The overview of HRM within different cultures has sought to bring out the main trends and
the principal tasks facing HRM professionals in the selected countries.
538
Mrs.V.Nagavalli, Assistant Professor, R B Gothi Jain College for Women, Red hills, Chennai
INTRODUCTION
An Organization is a social group which contributes task for a collective goal. The
size of an organisation can vary from two people to thousands of people. Organisation can range
from profit-driven companies to non-profit organisation. The principles of management have
been learnt and established over time and can be applied to all organisation. A key aspect that
should be considered is the goal of the Organisation.
Management in all business and organizational activities is the act of getting people
together to accomplish desired goals and objectives using available resources efficiently and
effectively. Managing a successful organization (nonprofit or for-profit) -- or building up the
health of an already established organization -- requires healthy, ongoing leadership and
management. Management focuses on leadership skills, such as establishing the vision of the
organisation and its goals, communicating these and guiding others to accomplish them.
An organizational management is made up of a group of people who come together
to accomplish a common goal or a set of goals. Organisational management can also be
understood as the group of people responsible for making decisions in an organisation such as
executives and managers. Organizational management is the effort of organisational members
and resources to achieve stated organisational goal. Organization management binds the
employees together and gives them a sense of loyalty towards the organization
Organization Management helps to extract the best out of each employee so that they
accomplish the tasks within the given time frame.
ORIGIN
Organisation the word itself is derived from the Greek word organon, itself derived from
the better-known word ergon - as we know organ` - and it means a compartment for a
particular job.
The concept of management is by no means new. This in fact can be traced to the ancient
times whenever there was any endeavor of a large scale, like building up the great pyramids in
Egypt or the Walls of China or the Sun Temple at Konark in ancient India. All these required a
large number of people working in a coordinated way to achieve a well-defined target over a
period of time.
Organizations and Management were with us for thousand of years, the systematic
investigations regarding management started only round the last century which led to a common
body of knowledge and a formal discipline.
OBJECTIVES OF ORGANIZATIONAL MANGEMENT
Organization management refers to the art of getting people together on a common platform to
make them work towards a common predefined goal.
Organization management enables the optimum use of resources through meticulous planning
and control at the workplace.
Organization management gives a sense of direction to the employees. An effective
management ensures profitability for the organization. Organizational management refers to
efficient handling of the organization as well as its employees with effective leader.
MANAGERS
Organizational management focuses on leadership skills such as establishing the vision of the
organisation and its goals. Leaders should be facilitative, participative and empowering to
ensure visions and goals of the organisation. If leaders are not clear about all the aspects of the
539
organisation they will not be able to lead it other member. Managers who are viewed as a team
leader are the main pillars of the organizational management because they direct and guide their
work teams to achieve organization objectives. They are basically
Top Managers are those able to interpret the policy of the organisation.
Middle managers are responsible for the implementation of policy and
First line managers are those who conduct routine administration
FUNCTIONS OF A MANAGER
The most traditional is that management comprises a set of duties such as Planning, Organizing,
Leading and Controlling activities and it could focus only on leadership skills. All four
functions are immensely important and no one function is better than another. The functions
must be coordinated to have management operate as a whole. Managers must continue to check
on the function to make sure that they are being achieved and constantly updated.
PLANNING
Planning encompasses looking forward and developing things in advance. Planning is up to

the management to be able to make the plan and have firm decisions. Good planning requires a
methodical process that clearly defines the lead to optimal solutions.
Contribution to objectives: Every plan has to contribute positively towards the
accomplishment of organizations objectives.
Efficiency of plans: Efficiency is measured by the contribution of the plan to objectives of the
enterprise minus the costs and unsought for consequences in formulating and implementing
the plan.
Primacy of planning: Planning is the primary prerequisite for all other functions of
management. Every action of the manager follows a planning step.
Planning premises: An organization use common and consistent planning premises, the
enterprise planning will be more coordinated.
Policy framework: The organization, are expressed in clear terms and form and if manages
understand them; the plans of the enterprise will be more consistent.
Timing: If plans are structured to provide a network of derivatives plans in sequence, there
will be more effectiveness in attainment of enterprise objectives.
Alternatives: Select the plan which is the most effective and the most efficient to the
attainment of a desired goal.
Limiting factor: Consider limiting factor in generating alternatives and selection from
alternatives.
Commitment: Planning can cover a period over which commitment of resources can be
clearly visualized.
Flexibility: Building flexibility in planning is beneficial, but cost of building flexibility needs
to be evaluated against the benefits.
Navigational change: Manager needs to periodically check events of the plan and redraw
plans to maintain the move toward a desired goal.
Competitive strategies: In a competitive arena, it is important to choose plans in the light of
what competitor will or will not do and navigate based on what competitors are doing or not
doing.
TWO BASIC PURPOSES OF CONTROLLING

1. It facilitates co-ordination
2. It helps in planning
Following are the characteristics of controlling function of management-
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1. Controlling is an end function- A function which comes once the performances are made in
conformities with plans.
2. Controlling is a pervasive function- A function which means it is performed by managers at
all levels and in all type of concerns.
3. Controlling is forward looking- Effective control is not possible without past being
controlled. Controlling always looks to future so that follow-up can be made whenever required.
4. Controlling is a dynamic process- Since controlling requires taking reveal methods, changes
have to be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two inseparable
functions of management. Without planning, controlling is a meaningless exercise and without
controlling, planning is useless. Planning presupposes controlling and controlling succeeds
planning.
CONCLUSION
Managers in the 21st century are encountering extremely significant challenges in their
process of management in an organisation such as hiring and keeping the right employee, building a
strategic mindset, crafting an innovative culture and organisation, developing system thinking and also
getting rid of short term mentality.
Employees not only need to own the profession, experienced but they also need to be readily
adapted to the organisation culture to allow high productivity, quality performance and also healthy
profits. Lack or absence of such environment pushes employees to look for new opportunities. The
environment should be such that the employee feels connected to the organization in every respect.
Managers should also revise their human management skills in dealing with employment issues from
time to time to match the changing labour market and working environment to retain those talented
employees.
In the challenge of building strategic mindset among the employees is important because
managers need to use their strength to overcome weakness and also try to turn threats into
opportunities. Managers has to eliminate the reactive mindset in which decisions are made and should
think actively to prevent the occurrence of problems rather than thinking for solutions after the arise of
problems.
541
BUSINESS ETHICS
Mrs. Anitha, Mrs. K. Sabana Ashmin, Mrs. Anandhi - Assistant Professors, RVS College Of
Engineering And Technology, Dindigul
Abstract
In the present scenario business ethics is playing a vital role across the world. It is termed as
written and unwritten codes of principles, rational, efficient and values that decide the harmless action
within an organization and also for environment.
This paper takes into factors such as cultural difference, codes of conduct, standards which
influence behavior and ethical outcomes. Ethical in international business, focuses on 2 perspective
such as teleological and denological methods. Teleological are based on estimating the given course of
action that has the most positive consequences and fewest negative consequences primary example of
teleological ethical thinking is utilitarianism. A deontological ethical method states that an action is
considered greatest of good because of the characteristic of the action, not because the product of the
action is good.
These methods help the managers to examine personal ethics and also help them understand
and work more effectively with others who have different ethical perspective. From the business point
of view we have to know the contribution of ethics in management strategies. One of the possible
ethics pertaining now in organization is environmental strategy that highly concentrates on eco-
labeling of products and environmental friendly products, where this have to be observed by universal
people to go only for eco-friendly business to avoid the impact on global warming.
Barriers are involved in ethical businesses are of structural and operational one. Yet another
barrier which is a giant to corporate and to manage business ethics in corporate culture pattern. From
this stand point it is described the specific steps taken in order to achieve a set of ethical values which
are both realistic and further more shared by all collaborators of an organization for business ethics.
But while doing so these organizations should also consider their moral, ethical social obligation. If
these obligations are neglected in the long run, it would implicate many devastating results while
fulfilling it would be a valuable asset and goodwill for the long run.
INTRODUCTION
There are many possible sources of ethics. Relegious believers from different countries
probably contributed to ethical conduct. It is a form of professional ethics that includes principles and
morals that arise in business environment. Ethics is termed as written and unwritten codes of standards
,rational and efficient values that decide that harmless action for both inside and outside organization.
Ethics an important study in international management because ethical behaviour in one country may
be consider as unethical to other country. Two perspective such as teleological and denotological
methods are focused here. According to (Sinclair 1993)points out to ways of managing culture so that
it would be of ethical:
Creating strong individualized culture with ethical values.

Generating sub culture by department and groups with ethical values.
When Ethical behaviour is not shared by both manager and employees that do have positive
ethical values which research ethical value weak set of beliefs. The existence of non ethical culture will
lead changes which will stem from economic needs and not for ethical ones .
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TRADITIONAL ETHICS
During historical periods it is observed that leaders who hold power in a society formulate
ethical rules. They are been considered themselves sacred claiming to be representatives of God or
other divinities. This practice reinforce their power. This improves the level of ethics for each
individual in the group. Then they upgrade ethics in large organization where leaders propose ethical
course of conduct on subordinates. A great religious Asiatic countires-Buddhists and others think that
it is possible to live as a saint without believing in monotheistic God. So there are many possible
sources of ethical origin each probably contributed to ethical conduct which is still practicing.
CULTURAL DIFFERENCES
This term is frequently used to explain behavior and other differences when doing business in
cross borders. Some definitions brings on factors such as : People are born with learned culture and
can acquired through socialiation process. Learned culture is been communicated and transmited by
members within different groups. Various elements of culture are inter-related which match attitude
and beliefs resulting from experience.
For conducting international trade,organization has to manage across culture. It is desirable to adopt
according to prevailing situation in doing business. In other words immigration workers expected to
adopt western norms of behavior, dress and customs. (example)There would be no rooms for daily
prayer breaks for muslims which in turn means respecting individuals.
CORPORATE CULTURE
Managing ethical culture is profitable for a firm, both regarding employees customers,
suppliers, competitors and society. Gomez(1990) has suggested a number of reason why we should be
ethical when managing a firm:
-An awaraness of solidarity, and therefore , that any harm which is done will always result in
somebody suffering it.
-An awareness of alterity a new vision of traditional principle do not do and unto others what you do
not want anyone to do to you;
-Fear of negative consequences affecting the honour and respectability of the firm;
-Fear of legal sanctions.
The process of implemation of ethical culture includes the following such as : Involving managers with
in the transformation of ethical values. Reformulating training procedure in such a way that they
include the desired ethical values. Periodical bearing in mind which ethical culture supports the hole
structure of corporation.
CODES OF CONDUCT AND STANDARDS

It is defined within an rganization in the form of standards usually associated with set of rules and
guide lines. They tend to be expression of mixtures of technical, and moral imperatives this influence
behaviour and therefore ethical outcomes. Codes of conduct which become accepted across firms in an
industry are very powerful. The guiding principles to follow are:
Conform to statutory regulation
Operate to the best practices of the industry
Assess the actual and potential health, safety and environmental impacts of their activities and
products
Work closely with the authorities and the community in achieving the required levels of
performance.
Be open about activities and give relevant information to interested parties.
ETHICS HAS TO BE TRANSMITTED AND FORMALIZED.

Ethical rules are transmitted orally in families and schools, through sacred texts, church
ceremonies, books on philosophy and other ways.Ethics, honesty and transparency are necessary to
insure shareholders and third parties are fairly informed about the financial situation of a company.
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Ethical action needs to be based on general principles as well as on specific detailed rules which can
often be avoided , thus vitiating the protection of the public.
Ethical rules are found in many forms, all of which hopefully can improve conduct.
CONCLUSION
Every individual has to impart ethics and to practice where they work.this becomes a good
solution. Being ethical in business is a difficult exercise in weighing the business interests required to
survive and prosper against current or improving ethical principles, which, some believe, are being
more and more enforced by the free market system. Building corporate social responsibility into
mainstream management theory and practice is now necessary if our society is to improve but it
complicates the job for management because ethical expectations are now higher for businessmen and
their ethical obligations are not always clear. Ethical conduct needs to be based on a case by case study
of particular situations. The primary duty of business remains, nevertheless, to maximize profit for their
shareholders otherwise it will cease to exist. Despite these difficulties, the public now more and more
expects the private sector to fulfill its ethical and environmental obligations because it has become a
most important actor in modern society with a direct and serious impact on the public interest. Public
opinion expects it to produce a good result in all three of its balance sheets financial success, ethics,
social justice and sustainable development.
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Mrs. Anitha, Mrs. Anandhi, Mrs. K. Sabana Ashmin - Assistant Professors, RVS College Of
Engineering And Technology, Dindigul
ABSTRACT
To better manage the customer in todays highly competitive world, an increasing number of
organizations have realized the importance of becoming more customer- centric and invested heavy
time and resources in customer relationship management. The researcher and academicians interest
has resulted in a multifaceted exploration of CRM concepts.
Many organizations must try to bind firm, people, processes and technologies with the help of
CRM. A prolonged relationship orientation within the organization is drastically necessary. This paper
focuses a strategic perspective and a managerial orientation to explore and understand different faces of
CRM.
The emergence of services along with market economy, global orientation of businesses and
the aging population of the economically developed countries have been identified as pooling drives for
CRM. Concentration is given to make a business successful by building strong and mutually beneficial
relationship with customers. Hence the benefits of CRM for the firm as well as the customer are
discussed in the paper.
The economies of CRM are given more emphasis. The cross- selling and up selling, life time
value of customer relationship are clearly explained. Many studies have been done about
methodologies, tools and theoretical conceptualization of CRM, there is little, if any, emphasizing the
critical steps and key challenges to its successful implementation. This paper picks up on that
challenge.
The roadmap which this paper develops has adopted the steps and process to explain the
stages of adopting CRM. Large number of issues and challenges related to implementing a technology
solution for CRM are also discussed.
Zero customer defection and retention programmed play a vital role in ensuring that valuable
customers have enough reason to be more loyal to the organization. Thus the paper concludes with the
above said issues.
Key words: CRM implementation, Customer relationship management, CRM Road Map, CRM
Project Management.
CRM Introduction
To build stronger relationships between companies and their customers a number of strategies
and technologies are used in CRM, or Customer relationship management. For this purpose a company
will store information that is related to their customers, and they will spend time analyzing it.
Some of the methods connected with CRM are automated, and the purpose of this is to create
marketing strategies which are targeted towards specific customers. The strategies used will be
dependent on the information that is contained within the system. Customer relationship management
is commonly used by corporations, and they will focus on maintaining a strong relationship with their
clients.
The competition in the global market has become highly competitive, and it has become easier
for customers to switch companies if they are not happy with the service they receive. One of the
primary goals of CRM is to maintain customers. When it is used effectively, a company will be able to
build a relationship with their customers that can last a lifetime.
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Customer relationship management tools will generally come in the form of software. Each
software program may vary in the way it approaches CRM. It is important to realize that CRM is more
than just a technology.
The basic concepts of Customer Relationship Management
Basic elements of CRM are:
CRM as a competitive strategy a strategic view
Customer satisfaction and loyalty
Relationship: selection and retention
Customer service and service marketing
Sales Force Automation (SFA)
Implementation of CRM
Customer Retention:
The point to be remembered always is that a repeat customer is the best customer. 6:1 is the
ratio which means you need to spend 6 times the money you spend in retaining an existing customer.
Another view point is 5% increase in retention of customer can add 25% to 125% increase in profit.
Essentially, retention is the key. However, not all your customers are worth retaining. You should
select the customer for retention. These customers should be the right ones with whom you wish to
establish a long term benefit for mutual benefit.
There are a number of benefits for selection of the right customer for an organization:
o It reduces cost
o It increases profitability
o It helps create goodwill for your organization
o It gets you good word-of mouth publicity
o It improves the possibility of greater customer satisfaction and loyalty
Thus, its needless to say select the right customer, have the right understanding of their
needs and evolve a right way to satisfy them.
The Service Marketing Triangle

The Service Marketing Triangle shows the relationship and linkage between three elements of
service marketing Company, Customers and Employees. Three types of marketing happen between
these 3 elements.
o Company to customers: External Marketing
o Company to employees: Internal Marketing
o Employees to customers: Interactive Marketing
External Marketing:
It is a promise a company makes to a customer about the service and its delivery. External
marketing uses all the elements of communicating and reaching the customers through advertising,
sales promotion, selling, merchandising and all.
Internal Marketing:
It is all about applying marketing concepts to your own employees. You should be able to first
convince or market your concept to your own employees and enable them to deliver the service of the
customers. For this it is important to identify and fulfill your internal customers i.e. employee needs.
Internal marketing is thus a key to meeting the promises made through interactive marketing.
Interactive Marketing:
Service flows from people to people. The delivery or the actual service experience happens
between service employees and customers. Interactive marketing thus means keeping the promises
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made by the external marketing and completing the service-marketing triangle. It is through the
moments of truth that happen during the interaction the service delivery is made.
Sales Force Automation (SFA):

SFA is Sales Force Automation. Understanding SFA begins with the study of basic selling
process and the importance of FAB (Features, Advantage and Benefits) approach to selling. It then
moves to the technology of Automating Sales process. SFA is a technological tool to help sales people
acquire and retain customers, which helps in reducing administrative cost and provides good basis for
account management. It increases better selling chances for the Salesperson and more business for the
company. SFA helps in the following ways:
It helps a company to get customer retention and hence increase profits
Customers get better information, better products or services, faster responses to their queries and
hence this results in Customer Satisfaction
Contact Management System

This type of CRM is most efficiently used in small business. An integrated system of tracking
and recording electronic interactions such as email, online faxing, document manipulation, scheduling
and jobs allows individual workers or the whole organization to see the chain of activity. Included in a
contact management system are also individual contacts wherein a personal connection can be made.
This type of CRM is especially useful for industries where workers spend a lot of their time working
from a mobile office or telecommutings
These are just a few variations of customer relationship management; there are in fact many
more that can be used in conjunction with or separate from those listed above. In the end, the attention
to detail and personalization of customer interactions will win the client over. It is very easy to let
technology take over and de-personalize the business of sales, but it will also lead to a decline in
commerce. Partner your cutting edge CRM methods with good old fashioned personal contact for best
results.
BENEFITS OF CRM
CRM is more than just the next wave of computer-aided marketing; it's a way of doing business.
As companies realize that customer relationships are happening on many levels (not just through
customer service or a web presence), they start to understand the need for sharing all available data
throughout the organization. A CRM system is an enabler for making informed decisions and follow-
up, on all the different levels.
1. Cost reduction
A strong point in Customer Relationship Management is that it is making the customer a
partner in your business, not just a subject. As customers are doing their own order entry, and
are empowered to find the info they need to come to a buy decision, less order entry and
customer support staff is needed.
2. Better Customer Service
All data concerning interactions with customers is centralized. The customer service
department can greatly benefit from this, because they have all the information they need at
their fingertips. No need to guess, no need to ask the customer for the n-th time. And through
the use of push-technology, customer service reps can lead the customer towards the
information they need. And, most of the time, the customer can do this on their own, as the
CRM system is more and more able to anticipate the need of the customer. The customer
experience is greatly enhanced.
3. Increased Customer Satisfaction
The customer feels that he is more "part of the team" instead of just a subject for sales and
marketing (the proverbial number), customer service is better, his needs are anticipated. There
is no doubt that customer satisfaction will go up. If the products sold exceed the customers
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expectation, of course, no CRM system can help you with shoddy products. In my opinion, the
term satisfaction is a contaminated. Many companies think that if customers are satisfied that
this is a good predictor for repeat business. However, this is not the case. Only delighted
customers have a great level of loyalty.
4. Better Customer Retention
If a CRM system can help to enchant customers, this will increase customer loyalty, and they
will keep coming back to buy again and again, hence customer retention.
5. Loyal customers
loyal customers are more profitable. It has to innovate and meet the very needs of its clients so
that they remain as advocates on the loyalty curve. Referral sales invariably low cost high
margin sales.
6. More repeat business
The repeat business is coming from the delighted customers, who are turned from doubting
clients into loyal advocates.
7. More new business
If you are delivering the ultimate customer experience, this will seed the word-of-mouth buzz,
which will spawn more new business.
8. More Profit!
More business at lower cost equals more profit.
CUSTOMER LIFE TIME VALUE

The actual value of a customer is equal to a quantity that is frequently called the Customer
Lifetime Value. Sophisticated modeling methods help to quantify LTV, many variables will not be
easily quantified, such as the assistance a customer might give an enterprise in designing a new product
or value derived. Any model that attempts to calculate individual customers LTV should employee the
following data appropriately:
Repeat customer purchases

Greater profit or lower cost from repeat customer than from initial customers
Indirect benefits from customers such as referrals
Customers stated willingness to do business in the future rather than switch suppliers
Customers Records
Transaction Records
Products and Product costs
Marketing and transaction cost
Response rates to advertising efforts
The objective with LTV modeling is to use these data points to create a historically
quantifiable representation of the customer and compare the customer history with others
customers. Then the enterprise can begin to build a statistical model and project the customers
future trajectory
CONCLUSION:
Because of their impact on customer service, the use of mandatory CRM is likely to have an
important impact on service encounters where emotions play a large part. Consequently the arguments
in this paper have sought to make a case for widening the perspective of evaluation to include less
traditional forms of measurement beyond financial measures. It is proposed that through an
understanding of the emotional dynamics at play, management could be better sensitized to the
appropriate use of mandatory CRM, the social considerations of implementing such systems and a
more comprehensive method for evaluating the returns from CRM investments.
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PSYCHO SOCIAL FACTORS INFLUENCING WOMEN IN BUSINESS
Dr.S. Sangeetha Associate Professor & HOD, Department of Management Studies &
Mrs.S.U.Silambarasi Assistant Professor, GRT Group of Institutions, BKR College of Engineering &
Technology, Tiruttani, Thiruvallur Dt.
ABSTRACT
This study explores the psychosocial barriers influencing workingwomen. The survey is based
on both primary and secondary data. Investigation is based on questionnaire method. The researcher
identified 40 businesswomen, and found out their Psycho-Social barriers. As per the given objectives
tables are drawn and percentages are calculated. In the past decades women were treated as a weaker
section because of sexual differentiation and pushed in to the four walls. Family background plays an
enormous role in womens career. They depend on others and need some moral support from the
family. In India, womens duty is to take care of their children and other family members. They have to
face challenges and make a balance between family and their business. In India most of the women are
still illiterate. Owing to lack of education women are not aware of business technology, market
techniques and low achievement motivation. Every womans life has been determined by a man and
vice versa. Most of the workingwomen belong to nuclear family and it reduced to their traditional
burdens. Most of the women are working in tiny units like handicrafts and handlooms. However, large
sectors are not giving opportunity for self-employed women. They have inadequate confidence among
women because of their physical fitness. The modern women play a vital role in social, economic,
political and legal fields. For the sake of winning bread one has to cross even the ocean and earn
wealth. This statement is not only applicable to man but also to women. The real problem with the
women is to face the career requirements and also to care their family requirements. They have to face
many challenges in balancing their role career based women and family based women. As a woman she
has to face psychological problems like inferiority complex, achievement motivation and mass media
communications. Along with this she has to face political, business, legal and other unique problems
like biological and acquired problems. In common parlance, women plays pivotal role in economic
development. Traditional and social factors will ever create problems. But, women should ready to
break the hinders and protect themselves. This study wholly implies that psychosocial barriers
influencing workingwomen.
Introduction: -
This paper considered self-concept, perceived managerial competence, and work stress and
business commitment as important psychological variables for perceived entrepreneurial success
among women entrepreneurs. A study was conducted to examine these factors, using 40 business
women. Trade and business is considered as one of the most important variables contributing to
industrial growth as well as economic development of society. In the past decades women were
treated as a weaker section because of sexual differentiation and pushed in to the four walls like prison
walls1. At present, most of the women doing business and enhanced their capacity. They have come
out from the four walls and expose their feelings. They reduce their inner burdens through working in a
concern or an industry. Women have shown their competency in all levels of management and at the
same time women facing many problems from the point of psychological aspects. Psychological means
are not only based on inner feeling. It means both mental and physical alertness. Self-confidence is an
essential factor to enhance the perception of women. Mostly women feel lonely and need self-security.
Family background plays an enormous role in a womens career. They depend on theirs and need some
moral support from the family.
Objectives: -
1. To analyze the traditional barriers influencing workingwomen.
2. To identify the family background of working women.
3. To find out the goal and ambitions of workingwomen.
4. To understand the encouraging factors influencing working women.
5. To analyze the discouraging factors influencing workingwomen.
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Methodology: -
Primary data has been collected from the working women in Chennai city. About 40 working
women have been selected who were engaged in business activities covering the garments and textile
designing.
Limitations: -
1. This study is only gives importance to women not for men.
2. It implies only psycho-social barriers and there is no importance for motivational factors.
3. It emphasis traditional and social barriers but our customs and traditions are not flexible.
4. This survey is only comes under small area and not widely covered.
This study has covered mainly traditional problems and constraints faced by women during the
course of managing their business. It also contains the suggestions for mitigating problems faced by the
women. Traditional problems, Family background and competitions are the major problems, which are
influencing the working women psychologically.
Main Study: -
This study is based on 40 working women. From this the researcher analyzed psycho-social
factors such as age, education and caste and family background influencing the working women.
Table 1 Age at the time of starting the unit
Age No. of respondents Percentage
25 30 20 50
30 35 4 10
35 40 8 20
40 45 4 10
45 50 4 10
Total 40 100
From the above table 50% of women were started their business in the age group
of 25 - 30. It shows that young and middle age women are ready to come forward to expose their
talents enthusiastically. This proves age is no bar to start any type of industries.
Table 2 Religion
Religion No.of respondents Percentage
Hindu 36 90
Muslim 4 10
Others - -
Total 40 100
The above table shows 90% of women were started business and they also belongs to
Hindu community. Other religions are having more fear to come forward to expose their thoughts.
This shows Hindu got more freedom than others in traditional basis.
Table 3 Caste
Caste No.of respondents Percentage
Nadar 24 60
Mudaliar 8 20
Jain 4 10
Others 4 10
Total 40 100
From this, 60% of women got success and came the Nadar caste. The participation of
women in Nadar and Mudaliar are shows high in progress. Other caste are only getting little
opportunity. Traditional background is the major reason for the little progress.
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Table 4 Marital status
Marital status No.of respondents Percentage
Single - -
Married 40 100
Total 40 100
From the above table all the women were started their business after marriage
only. This shows the encouragement of their husbands and men gives equal importance to women.
Table 5 Marriage as a barrier
Response No.of respondents Percentage
No 24 60
Yes 16 40
Total 40 100
The above survey shows 60% of women consider marriage is an essential key for
successful women. But, 40% of women feel that marriage is a barrier because of psychological and
traditional problems.
Table 6 Type of family
Family No.of respondents Percentage
Joint family 8 20
Nuclear family 32 80
Total 40 100
From the above table shows 80% of working women belongs to nuclear family and
20% of women only belongs to joint family. The reason is joint family has confined by traditions and
customs.
Table 7 Ambition Influencing to start the unit
Ambitions No.of respondents Percentage
To full-fill my own 16 40
ambition
To keep myself busy 8 20
Because, I had nothing else 4 10
to do
To earn money 4 10
To help provide 4 10
employment to others
To pursue my own interest 4 10
Total 40 100
From the above table 40% of women were started their business to fulfill their own ambition. 20%
of women were started new ventures to keep busy themselves. This proves that the women are come
forwarding to full-fill their desires.
Table 8 Educational Qualification
Education No. of respondents Percentage
Degree 32 80
Higher secondary 4 10
Matric intermediate 4 10
Total 40 100
From the above survey, 80% of working women are degree holders. At present
most of the women feels to complete their education degree level.
Table 9 Major portion of life
Source No. of respondents Percentage
City 24 60
Village 8 20
Town 8 20
Total 40 100
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60% of women are come forwarding to expose their achievements from city only. 40% of
women in towns and villages are not aware about their social life.
Table 10 Encouraging Factors
Encouragement No. of respondents Percentage
Relative 0 0
Family 36 90
Friend 4 10
Total 40 100
90% of women are getting encouragement from family and 10%
encouragement from friends. So good family background as the main factor of womens life.
Table 11 Ownership Type
Ownership No.of respondents Percentage
Self-owned 36 90
Partnership 4 10
Total 40 100
90% of women were started self-owned business. At present, women are ready to
take self-decisions in business place.
Table 12 Discouraging Factors
Discouragement No. of respondents Percentage
Competition 20 50
Lack of know how 12 30
Lack of education 4 10
Family 4 10
Total 40 100
50% of women are getting discouragement from the marketing environment.
Competition is a major discouraging factor and Ignorance Plays secondary role to discourage the
business women.
Table 13 Reasons for refusing working women in society
Reasons No. of respondents Percentage
Traditional values 16 40
Male domination 20 50
Male ego 8 20
Women herself is 12 30
responsible
Any other reasons 4 10
Total 40 100
50% of women are considers that male domination is the reason for society refusing working
women. 40% of women think that traditional values are the major problem. Traditional value plays
predominant role and male domination is a part of that affects largely.
Suggestions: -
Generally womens life is divided in to two parts, such as after marriage and before marriage.
So, she has been facing two types of turning points in her life. Marriage is an essential career or may be
barrier in womens life. This study is based on 40 working women and all of them started their business
only after marriage. This proves that women are dependent on their spouses for doing business
independently and enthusiastically. They give moral support to women to develop their units
successfully. But as per the general study most of the women even educated people also think that
marriage is a major barrier and it affects their dependency and their own ideas. Apart from the general
study, women should have spouses to discus, share their experience and joys to become eminent
persons in the business world. In the past decades marriage was a major barrier of womens life. But, in
the 21st century marriage is an essential key and it gives psychological strength to women getting
sophisticated life.
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Nuclear type of family plays pivotal role in womens life. Most of the business women are
hailing from the middle class families. Family background is an essential factor in womens progress.
90% of working women have been good family conditions and 10% of them getting hindrances from
family, because they are belonging to joint family. Joint family is bound by traditions and customs.
This de-motivate women in business. That is why, most of the working women belong to nuclear
family and it also reduced the traditional barriers.
The role of women in the economic and cultural development of a society is under estimated
and under scored in India. The concerted efforts to make the language, literature, art, architecture,
symbols, education, learning process, all male dominated and male oriented indicate the negative value
system and partisan attitude to perpetuate class structure in the society4. The present situation and
communication are huge anti-women in nature. The caste system, family, marriage, child bearing,
traditions, superstitions, beliefs, god fearing attitudes have directly influence the position of working
women in society. In the present scenario women education play indispensable role, Swami
Vivekananda also says, A real education is one who stand in her own legs. Of course, education
gives power to women to stand in her own legs. Most of the women completed their studies only up to
higher secondary level. But, this survey shows that 80% of working women studied up to degree level.
This creates positive environment to women to enhance their creativity. At the out set, women are
doing business with peace of mind and also balancing their business and family position. But, 60% of
women are coming forward to break hurdles. But, rural women are still struggling for their basic needs
and lack of know-how.
In common parlance, women play gigantic role in economic development. Traditional and
social factors will ever create problems but women should be ready to break the hindrances and protect
themselves. But, in the modern world women balancing their family and social activities to uplift their
standard of living.
CONCLUSION
Independence brought promise of equality of opportunity in all sphere to the Indian women
and laws guaranteeing for their equal rights of participation in political process and equal opportunities
and rights in education and employment were enacted. In the above-cited facts, male domination is the
major psycho-social problem of working women in the society. The women are supposed to keep their
activities confined to the boundaries of the house. Tradition and the culture are the main hindrances of
womens development. Rig Veda says, Marriage is a union of sole and sole bone with bone flesh with
flesh. It makes very clear that a woman is the integral part of mans life. A Woman is behind the
success of every man. Swami Vivekananda says without women we can not have regeneration in the
world. Lack of know-how and lack of education is also the main reasons for backwardness of women
in entrepreneurship. At present, women break all the hurdles and achieved lot in their entrepreneurial
career.
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INNOVATIVE BUSINESS OPPORTUNITIES AND SMART BUSINESS
MANAGEMENT TECHNIQUES FROM GREEN CLOUD (REV 3)
VIJAYKUMAR Thiagarajar chool of Management Thirupparankundram, Madurai.
C. DHIVAGAR, Thiagarajar School of Management, Thirupparankundram, Madurai
R. M. JAGANLAL, Thiagarajar School of Management, Thirupparankundram, Madurai.
ABSTRACT
This paper going to deals with the Worlds emerging eco-friendly and economical friendly
business opportunities of Cloud computing. It reveals the Secret behinds in it and how it gives
opportunities for the student, house hold business and for corporate in this third version of our research
work brings you most advancement technology and its latest opportunities. In addition it deals with
how it supports to reduce global warming. It gives an overview to at which way we can able to gives
our pc to cloud and from that what are all the ways to earn money. So, we classify the opportunities
into three categories of opportunities. Key additional supporting feature behind this business
opportunity is reducing global warming. And also it satisfies the RRD concept and gives an idea to
utilize it in an efficient manner and the scopes on cloud computing this will reveal by this paper and we
take you to the next generation computing based business opportunities.
Keywords: Clod computing, Eco-friendly business, Future trends, RRD, Economical, Business scopes.
INTRODUCTION
Cloud computing comes into focus only when you think about what IT always needs a way to
increase capacity or add capabilities on the fly without investing in new infrastructure, training new
personnel, or licensing new software. Cloud computing allows consumers and businesses to use
applications without installation and access their personal files at any computer with internet access.
Popular cloud vendors are Akamai, Amazon, Enki Consulting, Joyent, Layered Technologies (Layered
Tech), Rackspace Mosso, Salesforce.com, Terremark, 3Tera, IBM Blue Cloud etc. All are wondering
why it is named as Cloud computing because this computing techniques did not have any shapes, a
collection of system is called as cloud it can be in any number. Cloud structure is based on the
application that we going use. Google is the best example for the cloud computing it has a Google docs
used to share the documents on online.
How Google cloud connects:

Google offers cloud by sharing the documents on online so that each update done by
the user in the local system has been updated in the each shared files. So that the each user can view the
current updates rapidly.
CLOUD COMPUTING BUSINESS OPPORTUNITIES FOR VARIOUS LEVELS

Beginners in business
When the people like to running with own business they can use this cloud features because at
first they need lot of investment to buy official things like system, recruiting people, database, servers,
licensed softwares, internet etc, by using this cloud features we get the greater accessing speed with
the help of low system requirements, without buying the licensed softwares we can use licensed
softwares and without buying the database server we can store the records by using cloud effectively.
Students
Nowadays the educational institution highly focuses on current technologies because the
industry standards need such a quality among the students. The students also need to update their
knowledge with current trends so they want to use the latest softwares, due to the various release of
software packages every student cant buy new softwares and cant move with current technologies, to
solve this problem cloud computing provides the new updated softwares at low cost.
Researchers
The research scholars need to experiments their thought into new innovations. For doing
research works they need lot of softwares and high system requirements to take the reading and
measurements. With the help of those reading and measurements they will come out with the some new
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conclusions in such cases they need a software for hourly basis to calculated those measurements so it
is best way to approach through cloud computing.
Educational institution
Nowadays the educational institution approaching cloud computing for doing the reviews,
conducting the experiments, for conference, meetings, to share the materials. If they want another 50pc
like that they simply go there and purchasing that. From the cloud in holidays just you resale that
systems no need to spend rent for that. If in future you can once again give that thing in rental basics
like webhost reseller option.
Software Developers
The collection of resources from developer works technical libraries, products, and
community exchange keeps developers ahead of the latest trends in cloud computing and helps
developers develop skills, solve problems, and collaborate with peers and IT professionals. Cloud
Computing provides various opportunities for the software professionals like web developers, software
programmer, software tester, network analyst etc.
New product development

The company moves for new product development it is impossible to watch all the
regional managers in a same time, so it results in a quite long term process. Because the regional
manager will submit the report and then general manager will makes correction in it and the process is
redone so it is a time consuming process, but for organisation with cloud computing it is possible to
monitor the performance of all managers in the same time, if there was any mistakes such as product
development exists budget or new development is not suitable for the project we can intimate
immediately and stop him.
HR manager
Cloud computing model helps the HR manager to evaluate the performance of the employee
within an organization with the help of the cloud computing we can monitor the performance of all the
employees and promote him if he was good at his work. The cloud computing is the very helpful in the
360 degree appraisal system.
360 degree
The performances of an employees feedback will be given by his customers, workers, team
members and supervisors. In real it is a time consuming process but when a company moved for a
cloud computing it is a quick time processes as everyone under same cloud.
Business officials
Business officials need this cloud computing rapidly because concerns need software updates
regularly. Take an very small example you want to update antivirus update for every pc please think
how much bandwidth you need and how much you spend for that but when the matter comes to cloud
computing just you simply update your cloud source you can automatically get that update when you
call that software. This is small scenario but the real issues are huge in size we can solve it by cloud
computing.
Global IT reaches of cloud computing

Cloud computing reached globally in IT industry so far it has been surveyed that it controls
the budget of about 64% when compare to the 13 percent held by application development and network
architecture. Top IT companies focusing more on private cloud they required to save the employee
details and other services related to their core projects.
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Things need to focus before buying a cloud
The customer has to analyze the best cloud provider then they need to check whether customer
support is available for 24 X7 hours, user data is more precious thing so the customer has to get know
about the administrators who protecting these datas and we must know whether the user privileges are
at correct levels, data location is the another problem in cloud the customer did not know about the
location where the data has been stored it is difficult task to get all these details but customer can
conformed to the vendors whether the data has been stored according to the local country privacy
agreement, the customer has to check whether the data has been stored by encrypting because cloud
works on shared environment in those case if the encrypted data has been damaged it result in data loss
and it is difficult to get back those datas, the customer has to check whether each data backup by the
vendors for failures.
REAL-TIME SUCCESSIVE CLOUD COMPUTING SERVICE GMAIL

Nearly 2000 -2003 Gmail turns in the path of cloud computing afterwards its develop and
provide various cloud computing services from Google apps and apps engine we can able to deploy our
own research tool or program. From that user depend upon on our software usage or time of usage we
can earn money for that from that you can understand Google is the vendor for that but we cant able to
say from where that server works and its Google own server or not because sometimes yahoo can also
get server for rental basic from Amazon instead of investing huge amount on that.
CONCLUSION
This paper will show the cloud computing scope over the various business strategies and
scope of various fields in cloud computing. This technology improves the business opportunities
around the world. In the Business Innovative world, cloud computing makes the new business
opportunities with new way of sharing resources to all. We feel this is the right time to utilize it and
give this technology for this world as our valuable duty. In future this technology will play a vital role
to decrease global warming as well as it has potential to reduce e-waste. This technology is the source
of creating very big business opportunity the world never ever seen. So get ready for this technology as
well as technical change.
ACKNOWLEDGMENTS
The authors are grateful to Dr. S.Kannan Advisor of project6thsense and to all team members of
project6thsense email project6thsense@googlegroups.com for the making of our entire research
projects and for your valuable feedbacks.
REFERENCES:
[1] S.vijaykumar, S.G.saravanakumar, Cloud computing tends to Eco-friendly Business, ISSN: 1947-
833, pp. 37-49.
[2] Bernard Golden, Defining PrivateClouds, Part One, CIO.
Available at http://www.cio.com.au/article/304190/defining_private_clouds_part_one
[3] AMAZON CLOUD WATCH.
Available at http://aws.amazon.com/cloudwatch/
[4] ITS Service Management.
Available at http://www.itsm.info/ITSM.htm
[5] Gartner Names Hyperic Cool Vendorin Latest Research Report.
Available at http://www.hyperic.com/news/releases/hyperic-named-cool-vendorby-gartner.html
[6] http://www.nagios.org/about/features/
[7] http://www.zenoss.com/product/network-management
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CYBER BULLYING - A COUNTER ATTACK TO BUSINESS ETHICS
Ganesan.D Research Scholar (Management, part time - External), Manonmaniam Sundaranar
University, Tirunelveli-627012 & Arunkumar. P Final year MBA, Muthayammal Engineering
College, Rasipuram
Introduction:
"Cyber bullying" is when a child, preteen or teen is tormented, threatened, harassed,
humiliated, embarrassed or otherwise targeted by another child, preteen or teen using the Internet,
interactive and digital technologies or mobile phones. It has to have a minor on both sides, or at least
have been instigated by a minor against another minor. Once adults become involved, it is plain and
simple cyber-harassment or cyber stalking. Adult cyber-harassment or cyber stalking is NEVER called
cyber bullying.
It isn't when adult are trying to lure children into offline meetings, that is called sexual
exploitation or luring by a sexual predator. But sometimes when a minor starts a cyber bullying
campaign it involves sexual predators who are intrigued by the sexual harassment or even ads posted
by the cyber bullying offering up the victim for sex.
The methods used are limited only by the child's imagination and access to technology. And
the cyber bully one moment may become the victim the next. The kids often change roles, going from
victim to bully and back again. Children have killed each other and committed suicide after having
been involved in a cyber bullying incident.
Cyber bullying is usually not a onetime communication, unless it involves a death threat or a
credible threat of serious bodily harm. Kids usually know it when they see it, while parents may be
more worried about the lewd language used by the kids than the hurtful effect of rude and embarrassing
posts.
Cyber bullying may rise to the level of a misdemeanor cyber harassment charge, or if the child
is young enough may result in the charge of juvenile delinquency. Most of the time the cyber bullying
does not go that far, although parents often try and pursue criminal charges. It typically can result in a
child losing their ISP or IM accounts as terms of service violation. And in some cases, if hacking or
password and identity theft is involved, can be a serious criminal matter under state and federal law.
Direct Attacks
1. Instant Messaging/Text Messaging Harassment
2. Stealing Passwords
3. Blogs
4. Web Sites
5. Sending Pictures through E-mail and Cell Phones
6. Internet Polling
7. Interactive Gaming
8. Sending Malicious Code
9. Sending Porn and Other Junk E-Mail and IMs
10. Impersonation
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The Vengeful Angel
In this type of cyber bullying, the cyber bully doesnt see themselves as a bully at all. They see
themselves as righting wrongs, or protecting themselves or others from the bad guy they are now
victimizing. This includes situations when the victim of cyber bullying or offline bullying retaliates and
becomes a cyber bully themselves they may be angry at something the victim did and feel they are
taking warranted revenge or teaching the other a lesson. The Vengeful Angel cyber bully often gets
involved trying to protect a friend who is being bullied or cyber bullied. They generally work alone, but
may share their activities and motives with their close friends and others they perceive as being
victimized by the person they are cyber bullying.
Vengeful Angels need to know that no one should try and take justice into their own hands.
They need to understand that few things are clear enough to
understand, and that fighting bullying with more bullying only
makes things worse. They need to see themselves as bullies, not the
do-gooder they think they are. It also helps to address the reasons
they lashed out in the first place. If they sense injustices, maybe
there really are injustices. Instead of just blaming the Vengeful
Angel, solutions here also require that the situation be reviewed to
see what can be done to address the underlying problem. Is there a
place to report bullying or cyber bullying? Can that be done
anonymously? Is there a peer counseling group that handles these
matters? What about parents and school administrators. Do they
ignore bullying when it occurs, or do they take it seriously? The
more methods we can give these kinds of cyber bullies to use official
channels to right wrongs, the less often they will try to take justice into their own hands.
The Power-Hungry and Revenge of the Nerds
Just as their schoolyard counterparts, some cyber bullies want to exert their authority, show
that they are powerful enough to make others do what they want and some want to control others with
fear. Sometimes the kids want to hurt another kid. Sometimes they just dont like the other kid. These
are no different than the offline tough schoolyard bullies, except for their method. Power-Hungry
cyber bullies usually need an audience. It may be a small audience of their friends or those within their
circle at school. Often the power they feel when only cyber bullying someone is not enough to feed
their need to be seen as powerful and intimidating. They often brag about their actions. They want a
reaction, and without one may escalate their activities to get one.
Interestingly enough, though, the Power-Hungry cyber

bully is often the victim of typical offline bullying. They may be
female, or physically smaller, the ones picked on for not being
popular enough, or cool enough. They may have greater technical
skills. Some people call this the Revenge of the Nerds cyber
bullying. It is their intention to frighten or embarrass their
victims. And they are empowered by the anonymity of the
Internet and digital communications and the fact that they never
have to confront their victim. They may act tough online, but are
not tough in real life. They are often not a bullying but just
playing one on TV.
Revenge of the Nerds cyber bullies usually targets their
victims one-on-one and the cyber bully often keeps their activities
secret from their friends. If they share their actions, they are doing it only with others they feel would
be sympathetic. The rarely appreciate the seriousness of their actions. They also often resort to cyber
bullying-by-proxy. Because of this and their tech skills, they can be the most dangerous of all cyber
bullies.
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Mean Girls
The last type of cyber bullying occurs when the cyber bully is bored or looking for
entertainment. It is largely ego-based and the most immature of all cyber bullying types. Typically, in
the Mean Girls bullying situations, the cyber bullies are female. They may be bullying other girls
(most frequently) or boys (less frequently).
Mean Girls cyber bullying is usually done, or at least planned, in
a group, either virtually or together in one room. This kind of cyber
bullying is done for entertainment. It may occur from a school
library or a slumber party or from the family room of someone
after school. This kind of cyber bullying requires an audience. The
cyber bullies in a mean girls situation want others to know who
they are and that they have the power to cyber bully others. This
kind of cyber bullying grows when fed by group admiration,
cliques or by the silence of others who stand by and let it happen. It
quickly dies if they dont get the entertainment value they are
seeking.
The Inadvertent Cyber bully

Inadvertent cyber bullies usually dont think they are cyber bullies at all. They may be
pretending to be tough online, or role playing, or they may be reacting to hateful or provocative
messages they have received. Unlike the Revenge of the Nerds cyber bullies, they dont lash out
intentionally. They just respond without thinking about the
consequences of their actions.
They may feel hurt, or angry because of a communication sent to
them, or something they have seen online. And they tend to respond
in anger or frustration. They dont think before clicking send.
Sometimes, while experimenting in role-playing online, they may
send cyber bullying communications or target someone without
understanding how serious this could be. They do it for the heck of it
Because I Can. They do it for the fun of it. They may also do it to
one of their friends, joking around. But their friend may not
recognize that it is another friend or make take it seriously. They tend
to do this when alone, and are mostly surprised when someone
accuses them of cyber abuse.
Preventing cyber bullying:
Educating the kids about the consequences (losing their ISP or IM accounts) helps. Teaching
them to respect others and to take a stand against bullying of all kinds helps too.
CONCLUSION
Parents need to be supportive of your child during this time. You may be tempted to give the
"stick and stones may break your bones, but words will never hurt you" lecture, but words and cyber
attacks can wound a child easily and have a lasting effect. These attacks follow them into your
otherwise safe home and wherever they go online. And when up to 700 million accomplices can be
recruited to help target or humiliate your child, the risk of emotional pain is very real, and very serious.
Don't brush it off. The essential role is needed to be played by parents to save their children from cyber
bullies.
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EMERGING TRENDS IN FAST FOOD INDUSTRY - INDIA
Dr.M.G.Saravanaraj MBA, M.Phil, PhD, Professor& Head /MBA, Muthayammal Engineering
College- T.Sudha MBA, M.Phil, (PhD), Asst.Prof /RVS Faculty of Management Coimbatore.
A.Brindha MBA, DBAA, DND, Asst.Prof /RVS Faculty of Management Coimbatore.
ABSTRACT:
Fast food is one of the world's fastest growing food types. It now accounts for roughly half of
all restaurant revenues in the developed countries and continues to expand there and in many other
industrial countries in the coming years. But some of the most rapid growth is occurring in the
developing world; where it's radically changing the way people eat. People buy fast food because it's
cheap, easy to prepare, and heavily promoted. This paper aims at providing information about fast food
industry, its trend, reason for its emergence and several other factors that are responsible for its growth.
Food Industry:
The food industry includes all of the businesses in the world that specialize in producing,
distributing, and providing food, food-related equipment, and food services.It touches everyone except
for those individuals who grow all of their own food, since they may not be said to directly participate
in food trade.The food industry is one of the world's largest industries. For this reason, food industry
analysis is a broad field.
Fast Food An Introduction:

Fast food is the term given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be fast food, typically the term refers to food sold
in a restaurant or store with preheated or precooked ingredients, and served to the customer in a
packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by
MerriamWebster in 1951
Fast Food Industry- An Overview:

Fast food restaurants represent one of the largest segments of the food industry with over
200,000 restaurants and $120B in sales in the U.S. alone. Fast food restaurants, also known as quick
service restaurants (QSRs), are noted for their short food preparation time. Some of the largest players
in this category include international giants like McDonald's and Yum! Brands, national chains such as
Wendy's and Burger King and regional players like Jack in the Box and Sonic.
Since late 2006, the fast food industry's growth has been slowed by soaring food and energy
prices The high prices of commodities, combined with the housing slump and a weakening job market
are taking a toll on restaurant spending in the U.S. (the world's largest fast food market, by far). The
same food and energy inflation that is corroding consumer spending is also taking a bite out of
company margins.
Fast food restaurants have navigated this difficult landscape with varying levels of success.
International players such as McDonald's (MCD) and Yum! Brands (YUM) have had the most success
as explosive growth in emerging markets has offset rising costs and a U.S. slowdown. Other companies
like Sonic and Domino's have turned to new marketing campaigns and product innovation to boost
growth and profitability.
Growth of fast food industry in India:

Constantly experimenting with the tastes of consumers by mixing western menus, fast food
industry has seen a rapid growth in last few years, India is the world's second largest producer of food
next to China, and has the potential of being the biggest with the food and agricultural sector. The total
food production in India is likely to double in the next ten years and there is an opportunity for large
investments in food and food processing technologies, skills and equipment, especially in areas of
Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and
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Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry,
Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-
sectors of the food processing industry. A health food and health food supplement is another rapidly
rising segment of this industry which is gaining vast popularity amongst the health conscious.
India is one of the worlds major food producers but accounts for less than 1.5 per cent of international
food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US
$5.8 billion whereas the world total was US $438 billion. The Indian food industries sales turnover is
Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The industry has the
highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.
India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk products,
alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like
confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods
etc. We cover an exhaustive database of an array of suppliers, manufacturers, exporters and importers
widely dealing in sectors like the -Food Industry, Dairy processing, Indian beverage industry etc. We
also cover sectors like dairy plants, canning, bottling plants, packaging industries, process machinery
etc.
International players in Fast Food Industry:

A lot of Indians are travelling abroad experiencing changes in lifestyle and are keen on
experimenting with food, say experts. "Our comparable sales in metros have been nearly 20 per cent in
2010 and as the fast food market continues to expand across the country and across various consumer
segments, there is tremendous scope for expansion," says Vikram Bakshi, MD, McDonalds India
(North & East), adding that they are targeting to open around 40 plus stores in the country soon.
On the back of rising disposable income, changing consumer behavior, huge population base,
India is witnessing a tremendous growth is its fast food industry over the past few years. Other reasons
like - rising number of nuclear families, exposure to western cuisine and increasing number of
employed women are also having a significant impact on the eating out trends and growth of the fast
food industry in the country. As a result, all the international players like Pizza Hut, Dominos,
McDonalds and KFC are investing huge amount of money to grab a share of this highly lucrative
market.
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McDonald's made its India debut in 1996 with one outlet at Basant LoK in Delhi and at
present, it has 211 restaurants of which 105 are in North & East India and 106 in West &
South India.
Nirulas has 80 outlets (company owned and franchised) in 7 cities across Delhi, Uttar Pradesh,
Uttaranchal, Haryana, Rajasthan and Punjab and are planning to open 70 more till 2012.
The move to 'localize' the fast food tastes has paid rich dividends and increased brand loyal
customer base for the companies. Pizza Hut is known to introduce Indianised version of pizzas
to attract the local customer base. Pizza Hut launched products like Karahi Paneer, Teekha
Paneer and Karahi Chicken long time ago and it was a complete success
Trends in Indian Fast Food Market:

The fast food industry in India has evolved with the changing lifestyles of the young Indian
population. The sheer variety of gastronomic preferences across the regions, hereditary or acquired, has
brought about different modules across the country. It may take some time for the local enterprise to
mature to the level of international players in the field.
Many of the traditional dishes have been adapted to suit the emerging fast food outlets. The
basic adaptation is to decrease the processing and serving time. For example, the typical meal which
called for being served by an ever alert attendant is now offered as a Mini-Meal across the counter.
In its traditional version, a plate or a banana leaf was first laid down on the floor or table. Several
helpers then waited on the diner, doling out different dishes and refilling as they got over in the plate.
In the fast food version, a plate already arranged with a variety of cooked vegetables and curries along
with a fixed quantity of rice and Indian flatbreads is handed out across the counter against a prepaid
coupon. The curries and breads vary depending on the region and local preferences.
CONCLUSION:
Fast food is now so commonplace that it has acquired an air of inevitability, as though it were
somehow unavoidable, a fact of modern life. Hundreds of millions of people buy fast food every day
without giving it much thought, unaware of the subtle and not so subtle ramifications of their
purchases. They rarely consider where this food came from, how it was made, what it is doing to the
community around them. Fast Food Market robust growth over the past couple of years, it remains
largely underpenetrated and concentrated in metropolitan cities. However, there is a large room for
growth in untapped cities. Therefore, the future of the Indian fast food industry lies in metropolitan
cities. Owing to this, major fast food retailers are on the way to market their brands by using different
marketing strategies such as campaigns and putting up billboards in cities.
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NEW ROLE OF WOMEN IN MANAGEMENT
Kannammal.A (Lecturer) & Loganathan.V.P (Student)Department of Management Studies, Shree
Venkateshwara Hi-Tech Engineering College, Gobi.
ABSTRACT
The role of women in family business is relatively under-investigated. This article illuminates
complex relationships in a family business context, putting the family at the heart of the research as
opposed to an individual owner-manager. It draws on narrative accounts of establishing a family
business, as told by the founders and by the succeeding generation in three family businesses. Some of
the existing literature conceptualizes women in family business as marginalized through the forces of
patriarchy or paternalism. The narratives presented in this article point to alternative gender discourses
and practices, and to evidence of clear resistance to patriarchy. In so doing it begins to identify the
conditions under which patriarchy might be challenged in family businesses.
This paper presented about the influx of women into management positions, researchers and
practitioners have examined the career-related issues facing women managers. Their focus has been on
documenting the unique issues facing women managers, and the individual and organizational
strategies that can be used to assist them. The present article extends this research by reviewing a
number of career assessment devices that may be useful for counseling women managers. Over 45
strategies are described that address both internal issues confronting women managers (e.g., burnout,
disillusionment, self-efficacy, limited political skills, role conflict) and external barriers (e.g., backlash,
work-family conflicts, little access to mentoring relationships, social isolation, sex-role stereotypes). A
discussion of the research on career assessment tools for women managers is provided with
prescriptions for future research and practice.
INTRODUCTION
Women carry a cultural heritage of five thousand years. The social structures and role
processes which these women carry also belong to the traditional agrarian society which is two
thousand five hundred years old. The Indian women for long have been seeped in cultural lore of
idealism and faith, shackled within the context of involuntary conformity to social structures and roles,
and marginalized vis- a- vis the males of the family.
After a hundred years of industrialization and over fifty years of freedom, Indian women at the
workplace are realizing their dreams and finding their feet. Education opened doors for lot of women
who dared to dream, and to weave a fabric of life within which they could live their dreams and
achieve their ambitions. The journey which many women took in this century began with the freedom
movement and recently crossed the threshold of the new millennium. Women learnt to juggle multiple
expectations and demands of the system at home and at the workplace. They remained rooted in their
dreams of freedom, and their desire for self-fulfilment. Women in management are finally coming of
age. The transformation of the Indian woman from an enigmatic figure covered in metres of fabric, to
todays educated, successful and accomplished professional has not been without great personal
sacrifices. This image is as real and alive as the arduous path she has travelled to arrive at her current
destination. These are women who have broken shackles thousands of years old, who have walked a
previously non traversed path, who have had the courage to make new beginnings and pay the price for
the choices they have made.
Phase I : Women in the Fifties

The women of the fifties can be categorised based on their reasons and motivation for joining
the workplace. Women entered the workplace for two different reasons. Some women chose the work
option primarily due to economic considerations and monetary reasons. These women were educated
and the families required the resources. A different section of women belonged to families that owned
businesses or were well placed in professional circles. The women were educated, were not compelled
to do household chores, were intelligent and capable and wanted to utilise their education to pursue
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professional activities. Some women entered the world of business due to the loss of a male family
member. These women took the dual responsibility of income generation and home management. A
number of these women took on marginal and infra-structural service roles. In their attitudes, they
brought the baggage of social structures and familial rolesAs such, women who had entered the
workplace for the first time held on tenaciously to whatever organisational role that was available, and
tried to contribute their best. They dutifully fulfilled social role responsibilities and sought a sense of
fulfilment in their accomplishments. However, they remained caught between the pulls and pushes of
the both systems. On their part the women contributed to this situation by assuming the role of a dutiful
and submissive person rather than asserting themselves and demanding what was rightfully theirs.
Working women managed the home and stretched to fulfil all their social role obligations.
It was unthinkable to state that they were often extending and stretching themselves. However,
they hoped for societal understanding of their aspirations and support for their personal and
professional roles. They did not ask for help either from the husband, the in-laws or the children. The
husband and the extended family continued to expect that the woman fulfils all her traditional social
roles. They discovered that work provided a meaning to their life and highlighted a new facet in their
personality. The women themselves experienced work as a privilege and as an opportunity which many
others did not have. They had a job which gave them confidence, a steady income and the opportunity
to make good use of their education The first generation working women were forging a new role and a
space for themselves and were also charting a path for women of future generations.
Phase II : Women in the Sixties and Seventies

By the mid sixties, women in significant numbers had entered the portals of formal education
both at the primary level and at higher levels. In the realm of work, new frontiers had opened up for
women. These women had grown up with the benefit of education and dreamt of a different role and
life for themselves. Upon graduation, they entered organisations in significant numbers and aspired for
career growth. This was quite unlike their mothers who were housewives or the women in
organisations before them who were satisfied with whatever responsibilities that were assigned to them
but did not actively seek career paths.
Women in the 60s and 70s had aspirations to perform and be rewarded, could walk alongside
men and could deliver results without seeking the privileges of feminine social roles. They also
demanded that the organisation reviews policies and takes stock of womens contribution rather than
merely assigning responsibilities and relegating them to marginal infra-structural roles. Men at the
workplace as well as the husband at home were comfortable with women engaging in secretarial jobs
or what they perceived as soft organisational roles such as office administration. More aggressive
roles such as a woman banker or a female marketing manager were considered suspect by the male
orthodoxy. Some of the new realities of women in management in India in this phase reflect the
following patterns:
Phase III : Women in the Eighties

This was the era of emerging professionalism. Women of the fifties, sixties and seventies had
accepted both their social and work roles. They rode two horses and juggled seemingly conflicting
roles. The early generations of working women experienced alienation from both worlds without the
fulfillment and rewards that each had to offer. Women ended up emulating male managers. For many
women, work was necessary but marriage, motherhood and social relationships were equally important.
The women of the eighties attempted to bridge this dichotomy and to lead wholesome rather than
fragmented lives. They attempted to broaden their personal vision to encompass both career goals and
familial relationships. The women of the eighties had invested in themselves, designed multiple roles in
their lives and learnt to manage their home and work interfaces to respond to available opportunities
and challenges.
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Phase IV : Women in the Nineties
The women of the nineties emerged as a qualitatively different breed of women. Women in
the nineties increasingly have role models anchored in their own gender - mothers, aunts and teachers
who had successful careers and who inspired the young women of today to take up new challenges,
explore new vistas, compete at the workplace and find personal fulfillment. The generation of women
growing up in the nineties have also had support from the males in the family. This attitude of openness
has facilitated women both at the social as well as professional levels. The daughters were encouraged
to be financially independent before they contemplated matrimony.
Phase V: Transition to the New Millennium

The decade of the nineties witnessed a major paradigm shift in the business environment in
the country. The shift is away from industries based on manufacturing towards industries offering
services. The service industry lends itself to a more flexible work ethos, one that allows individuals to
be part of the work force regardless of their geographic location and work schedules. This trend has
been reinforced by the widespread availability of enabling technologies, such as user-friendly computer
hardware/software, internet facilities and virtual libraries. These industries have also been extremely
profitable and have created phenomenal opportunities for the proper utilisation of the significant human
resource that is available in India. These are industries that are new and vigorous and do not suffer
from the baggage of the past. Women have the opportunity to create virtual working environments at
home, avail of flexible working hours and therefore better deal with social and home responsibilities.
The emerging scenario in the new millennium suggests changes at the workplace which were
unthinkable in the past. Some of these are found below:
New Patterns of Identity for Women in the New Millennium

The transition to the new millenium is witnessing the woman of today creating new paradigms
in terms of being fully engaged in multiple roles and deriving fulfillment from each of them. She
aspires to find a relevance and a meaning for herself in life, accepts the uniqueness of her I entity, and
is willing to share her space in terms of co-holding different roles. Simultaneously, with all the dreams
of togetherness, she searches for individuality, dignity and respect.
Women often get caught up in their primary biological roles of nurturing and sustaining the
family. Today at the dawn of the new millennium women are at a cross-road and at the threshold of a
new life. They are the children of a new millennium and have the possibility to explore new frontiers
within themselves and in the external environment.
Fortunately, many women of the 20th century have taken an adventure into the unknown and
have
Business Women Differ From Business Menin Style, Not Skill

For business women, this is a good time to be in the management ranks! Men and women
managers today tend to describe their management skills and styles in terms that fit both their corporate
culture (the bosss style) and prevailing management jargon.
Cultural Conditioning Results in Gender Stereotyping for Women in Management

Business women use positions of authority to create a supportive, nurturing environment. Men
use positions of authority to create a hierarchal environment in which they issue orders and expect
obedience. The girls were getting much better grades in school and becoming fast learners! So much
for mens skills being superior to womens!
Communication Style Differences Between Men and Women in Management

Communications is one of the two issues cited most often when business women are asked
what they find most difficult to deal with at work The distinct ways men and women have of
(mis)communicating with each other is the most frequent result of gender stereotyping. The result is a
565
perceived power struggle. Women and men who work together often get tied up in communication
knots, especially over issues that involve power, advocacy and managing their teams. Thats because
the sexes have distinct ways of communicating. They request action and advice differently, their
responses and timing are different, and they have different styles for expressing work-related demands
and needs. And its all the result of that early social conditioning. Getting past this communication gap
is a matter of paying attention to gender differences, not just with co-workers, but probably with male
customers and vendors too.
CONCLUSION
Thus women at present make a wonderful attempt and succeed in almost all the task that they
undertake. Women are committed and put their full efforts and involvement in their work. They use
innovative ideas, different styles to do things differently which would result in ultimate success.
566
E-BUSINESS WITH INFORMATION TECHNOLOGY
Yuvaraajaa. L, Mca, Lecturer, MCA, Vel Tech Ranga Sanku Arts College , Vel Tech Road,
Avadi, Chennai.
ABSTRACT
In fast growing world The People not having time to spent in Traditional Business. To reduce
their time and make their business in fast way people can started the new technology called E-Business
Why spend money, time and resources integrating, customizing and maintaining complex IT systems
when you can focus all your capital and talent on becoming a market leader? Only e-business allows
you to wage war on traditional business complexity and build your organization into a competitive
market force.
The Efficiency of True e-businesses has all business processes online, streamlined and easily
accessible. Information is centralized and up-to-date allowing them to improve profit margins, focus on
the core business and improve productivity without waste.
Intelligence of E-Business is increase margin and the information generated by integrated

systems to more efficiently run operations and capture and retain customers is unprecedented. As an e-
business you bring together all intelligence applications, tools and technology needed to measure
performance and identify exceptions, drive targeted marketing, and create accurate forecasts based on
updated plans and actual results.
E-business is a term used to describe businesses run on the Internet, or utilizing Internet
technologies to improve the productivity or profitability of a business. In a more general sense, the term
may be used to describe any form of electronic business
In addition to buying and selling products, e-business may also handle other traditional business
aspects. The use of electronic chat as a form of technical and customer support is an excellent example
of this.
An e-business which uses chat to supplement its traditional phone support finds a system
which saves incredible amounts of time while providing opportunities unavailable through traditional
support. That is to say, any business which utilizes a computer. This usage is somewhat archaic,
however, and in most contexts e-business refers exclusively to Internet businesses.
The most common implementation of e-business is as an additional, or in some cases primary,

storefront. By selling products and services online, an e-business is able to reach a much wider
consumer base than any traditional brick-and-mortar store could ever hope for. This function of e-
business is referred to as ecommerce, and the terms are occasionally used interchangeably.
An e-business may also use the Internet to acquire wholesale products or supplies for in-house
production. This facet of e-business is sometimes referred to as e-procurement, and may offer
businesses the opportunity to cut their costs dramatically. Even many e-businesses which operate
without an electronic storefront now use e-procurement as a way to better track and manage their
purchasing.
By using virtual computer systems, for example, technical support operators can remotely
access a customer's computer and assist them in correcting a problem. And with the download of a
small program, all pertinent information about the hardware and software specifications for a user's
computer may be relayed to the support operator directly, without having to walk a customer through
personally collecting the data.
Using email and private websites as a method for dispensing internal memos and white sheets
is another use of the Internet by e-business. Rather than producing time-intensive and costly physical
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copies for each employee, a central server or email list can serve as an efficient method for distributing
necessary information.
In the past few years, virtually all businesses have become, to some degree or another, an e-
business. The pervasiveness of Internet technology, readily available solutions, and the repeatedly
demonstrated benefits of electronic technology have made e-business the obvious path.
This trend continues with new technologies, such as Internet-enabled cell phones and PDAs, and the
trend of e-business saturation will most likely continue for some time.
Difference between E -business and e-commerce

E-business and e-commerce are terms that are sometimes used interchangeably, and
sometimes they're used to differentiate one vendor's product from another. But the terms are different,
and that difference matters to today's companies.
The Buying Experience in E -business

In E -business leading wireless service provider recently launched an e-Business solution with
enhanced guided selling and configuration based on business rules that drive product and service
options.
In an environment characteristic of the B2B world, both business and consumer customers can
select equipment from a huge catalog of options and compare as many as five different packages that
include phones, service agreements, pricing and the cost to add more lines.
The "experience" also includes guidance on which plans best suit customers' needs and
suggestions about accessories to buy immediately, at a later visit to the site or by contacting the call
center. Integration between call center reps and the Web site visit provides a unified experience
throughout the customer relationship.
E-Business with Customers

Customers find the products they need from the integrator's 600,000-item catalog and also
generate quotes, place and change orders, and view their business transaction with the company. Also,
because of its e-Business solution, the integrator has been able to expand its offering beyond IT
products into selling office supplies and business equipment.
Characteristic of the B2C world, the new e-Business solution enables customers to get rich
product information, including reviews and comparisons, through an online interface.
While the merger of B2C and B2B will have a powerful impact on business, it will not erase
the differences that exist among different markets. Consumer product companies, by their very nature,
must be able to market to large audiences and have simplicity in their B2C offerings.
Manufacturers typically need to support customer-specific purchasing processes and

negotiated pricing agreements, and manufacturers and high technology companies have complex sales
processes. They not only offer configure-to-order products and services as well as replacement parts,
they often sell to both business and consumer users.
Data Mining on E-business

The development of data mining systems has received a great deal of attention in recent years.
It plays a key enabling role for competitive businesses in the E-commerce era.
One of the challenges in developing data mining systems is to integrate and coordinate
existing data mining applications in a seamless manner so that cost-effective systems can be developed
without the need of costly proprietary product
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Technologies
1. Database Connectivity
2. Servers and Communication Tools
3. E-Commerce Applications
4. Sucre Payments
5. Future Costs
E-Business Applications
Electronic business is any information system or application that empowers business
processes. Today this is mostly done with web technologies.
Three categories Of E- Business Application

1) Internal business systems:
Customer relationship management
Enterprise resource planning
Employee information portals
Knowledge management
Workflow management
Document management systems
Human resource management
Process control
Internal transaction processing
2) Enterprise communication and collaboration:

E-mail
Voice mail
Discussion forums
Chat systems
Data conferencing
Collaborative work systems
3) Electronic commerce:
( Business-to-business electronic commerce or business-to-consumer electronic commerce )
Electronic funds transfer
Supply chain management
E-marketing
Online transaction processing
CONCLUSION:
Using the technology and use of those applications makes easy to trade their products in world
wide using Electronic business. E-Business methods enable companies to link their internal and
external data processing systems more efficiently and flexibly, to work more closely with suppliers and
partners, and to better satisfy the needs and expectations of their customers.
In practice, e-business is more than just e-commerce. While e-business refers to more strategic
focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset
of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide
Web or the Internet to build and enhance relationships with clients and partners and to improve
efficiency using the Empty Vessel strategy
569
BOOKS & JOURNALS:
1. Realizing eBusiness with Components by Paul Allen, Publisher: Addison-Wesley Pub
2. eBusiness Essentials, 2nd Edition by Mark Norris, Steve West, Paperback: 352 pages,
Publisher: John Wiley & Sons
3. e-Business & e-Commerce for Managers by Harvey M. Deitel, Paul J. Deitel, Hardcover: 794
pages, Publisher: Prentice Hall
4. eCommerce: Formulation of Strategy by Robert Plant, Paperback: 368 pages, Publisher:
Prentice Hall
570
CORPORATE SOCIAL RESPONSIBILITY AND
EMERGING TRENDS IN GLOBAL BUSINESS
S.Aarthi MBA., M, Phil, Assistant Professor, Fatima College, Madurai -625002
P.Alagarsamy M.Com.,M.Phil.,(Ph.D), Research Scholar, P.G &Research Dept Of Commerce, Cta
College Bodinayakanur
INTRODUCTION
Corporate Social Responsibility (CSR), can be described as, the continuous commitment by
corporations towards the economic and social development of communities in which they operate. The
concept of corporate social responsibility of large industrial groups has occupied a prominent place in
the greater national discourse on economic issues since the pre-independence era in India.
Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in
particular whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase
Corporate Social Responsibility may be gaining momentum, the concept itself is not new. The
question as to whether corporations owe duties to broader stakeholders has been debated at various
times throughout the twentieth century. The CSR debate has largely revolved around the conduct of
multinational corporations (MNEs) and other large private companies which, due to their size, have the
ability to significantly influence domestic and international policy and the communities in which they
operate. Central to the debate is the perceived deficiency of national and international law remedies
regarding corporate accountability, in particular the ability of available regulation to successfully
regulate a corporations conduct in jurisdictions outside the corporations home state. Proponents of
CSR argue that the efficient functioning of global markets depends on socially responsible business
conduct.
KEY THEMES
1. Slow Progress on CSR, But Moving into Mainstream Business
There were different levels of optimism about the future of CSR, ranging from disillusionment that
CSR will never be more than a cover for corporate activity to the most hopeful view that CSR is part of
a paradigm shift from industrial capitalism to sustainability capitalism. This paradigm shift, it is
predicted, will witness businesses finding a way to deliver on substantial social change, even - in some
quarters - working to curtail the power business itself wields in society.
CSR pessimists predict:

o Increasing inconsistencies between corporate actions and stated CSR commitments;
companies will become astute at shielding their actual performance
o CSR will be a technical fix
o Really substantive issues wont be addressed by CSR;we will come to the point
where we say there have been great improvements, but whats really changing?
o Most businesses will hold back waiting for the business case to develop - however,
they may never be satisfied by the evidence of business case and may use this as an
excuse for inaction
CSR optimists believe that:

o In the future a significant number of companies will be convinced its in their
strategic interest to incorporate
o CSR substantively into their operations
o There is a crisis in industrial capitalism, which lacks in trust and social responsibility,
and within this we will see a rethinking of the role companies should play in society.
o CSR is at a crossroads, in a time of real discontinuity, enormously in flux. We are in
the very early stages of transition with cracks in the foundation of business such as
These are little tremors before the big earthquake - we will see bigger and deeper
571
cracks; there will be more shocks similar to 9-11 environmentally and socially - this
will drive CSR in substantial and unpredictable ways in the future
o High profile stumbles will continue to drive CSR
o The crisis in global markets is broadening the discussion of accountability and
transparency - in this climate there is more openness to CSR ideas. CSR will be seen
as good corporate governance
o There will be pressure through competition for better CSR performance - this will
impact on suppliers, etc.
o A small group of companies will be moving ahead quickly
o There will be differentiation between different models and levels of CSR as a result
of continuous improvement and quality assurance
o CSR will advance, but it will advance inconsistently across sectors, depending on a
companys economic performance, economic downturns, competitiveness of the
market, etc.
o Underlying structural drivers will impact large scale companies, such as the value of
knowledge workers and other intangible assets, driving companies to take different
issues into account
o We see only a few companies committed to CSR because we are at the beginning of
a long path on this journey; the shift toward sustainable capitalism is a long term
trend and in 5 - 10 years only a few companies will be moving in this direction
o Increasingly businesses will see CSR as resulting in increased competitiveness and
profitability
3. More Significant Roles for Stakeholders
One of the top trends around which there is consistent agreement is the increasing importance
of stakeholder engagement in the future of CSR. Not only will stakeholders be engaged in increasingly
significant ways, they will gain in influence, and will continue to innovate and bring forward new and
challenging values. Stakeholders here include consumers, employees, shareholders, suppliers, NGOs,
governments and business partners - all those that have a stake in a companys operations.
Process: Shift to Stakeholder Dialogue, Co-Production and Governance

CSR companies in the future will be increasingly moving from identifying and managing
stakeholders and their social issues to active engagement of stakeholders in issues of mutual concern.
Many are calling this stakeholder dialogue, as distinct from one-way communication or two-way
consultation. Stakeholder dialogue in future will be a process of multiple stakeholder participation
focussing on learning and innovation.Indeed, some thought leaders sees the future CSR Company
engaging its stakeholders in co-production, a process of developing product and service innovations
through joint problem solving tables with stakeholders. Companies will bring together all stakeholders
involved in a products use, creating collaborative design teams with the end result a more useful
product with enhanced environmental and social properties. Others believe that should these
relationships develop, they will be limited in number in this 5 - 10 year timeframe. A few see the
emergence of new governance models, predicting an increased role for stakeholders in governance,
such as stakeholder councils and other forms of engagement. Many suggest that increased stakeholder
engagement will require the development of problem-solving and decision-making tools to facilitate
the consensus-building process. Techniques will be developed to help people understand they wear
different hats as employees, investors, citizens in communities, and therefore need to compromise
certain benefits to get other benefits important to them. Others believe that compromises a sub-optimal
outcome and decision-making technologies will be developed to optimize triple-bottom-line solutions.
The development of these approaches was felt to be particularly important to those who thought that
with an increasingly interconnected world there will be a need to acknowledge that more and more
different people value different things. The key will be finding the outcomes acceptable to most parties.
Regardless of approach or rationale, many pointed to the likely development of tools and processes to
572
help stakeholders and companies address the trade-offs which need to be addressed in future as CSR
increasingly confronts the social and environmental challenges ahead. It was also suggested that these
advances in stakeholder engagement will be experienced primarily by civil society stakeholders as
consumer and employee opinions are and will remain actively solicited. Consistent with the
development of tools and processes, increasingly stakeholder consultation will become a core
competency of all staff, which will be expected to have productive relationships with stakeholders.
CONCLUSION
The new economic era in India i.e. the post-liberalization phase of the Indian economy was a
catalyst for the radical transformation in the corporate social responsibility related practices in the
country, The change was two fold: transformation of the conceptual understanding of corporate social
responsibility and innovations at the implementation level. At the conceptual level, there was a
fundamental transformation from the charity-oriented approach to the stakeholder-oriented approach
where the target group was seen as stakeholder in the community whose well-being was integral to the
long term success of the company. However, the real revolution occurred at the implementation stages
where companies have started committing manpower, expertise in addition to financial resources in
order to provide a host of services, programs and schemes that are flexible enough to accommodate the
needs of the target community. The CSR initiatives have also seen greater people participation at all
stages and tighter accountability standards. The issue of norms for corporate social responsibility seems
to have been adequately dealt with by industry practices like benchmarking, CSR ratings and
certification by different agencies.
While the situation in the private sector seems satisfactory, there is fierce debate on the social
role of the Indian public sector in the post-liberalization phase especially in the light of the twin
processes of privatization and the dismantling of monopoly/quota regimes. There is a need for
extensive research especially in form of empirical studies to address the questions related to this issue.
573
CONSTRUCTION AND SELECTION OF CONTINUOUS SAMPLING PLAN
Radhakrishnan. R Associate Professor, Department of Statistics, P.S.G. College of Arts and Science,
Coimbatore 641 014.
Esther Jenitha.K, Assistant Professor, RVS Institute of Management Studies, Coimbatore 641 402.
ABSTRACT
A CSP (c) is a single level continuous sampling procedure developed to incorporating the
concept of acceptance number in the applications of continuous production processes. In this paper a
procedure for constructing Continuous sampling plan of the type CSP-1 (c=2) indexed through the
Convex Combination of Average Outgoing Quality Limit (AOQL) and Maximum Allowable Percent
Defective (MAAOQ) is presented. This plan may safeguard the interests of both producer as well as
consumer by properly choosing a right combination using the gain parameter . A table is also
provided for the easy selection of the plan when = 0.1 and = 0.6 with
MAPD = 0.0025.
Keywords
Operating Characteristic curve, Average Outgoing Quality Limit, Maximum Allowable Percent
Defective, Maximum Allowable Average Outgoing Quality, Continuous Sampling Plan, Convex
combination.
AMS (2000) Subject Classification: 62P30.

1. INTRODUCTION
In the literature, the average outgoing quality limit (AOQL) is defined as the worst average
quality that the consumer will receive in the long run, when the defective items are replaced by non-
defective items. The proportion defective corresponding to the inflection point of the OC curve is
interpreted as the maximum allowable percent defective (MAPD = p*). Sampling plans indexed
through p* (MAPD) which is the quality level corresponding to the inflection point of the Operating
Characteristic (OC) curve has been explained by Mandelson (1962), Mayer (1967) and further studied
by Soundararajan (1975). The construction of sampling plans based on AOQL is largely consumer
oriented and the MAAOQ is the average outgoing quality at the inflection point is a producer oriented,
which is the average outgoing quality at MAPD. The advantage of using MAAOQ for designing a
sampling plan instead of AOQL is that it reduces the sample size to be inspected which directly reduces
the inspection cost and indirectly reduces the total cost. The use of MAAOQ for designing sampling
plans was justified by Suresh and Ramkumar (1996). Liberman and Solomon (1955) studied
multilevel continuous sampling plan and Radhakrishnan (2002) studied various sampling plans
including continuous sampling plans indexed through MAPD and MAAOQ. Sampathkumar (2007)
constructed mixed sampling plan indexed through AOQL, MAPD, MAAOQ and emphasized the
superiority of MAAOQ. Radhakrishnan and Mallika (2008, 2009a, 2009b, 2009c, 2010a, 2010b)
constructed single, Double, ChSP-1(Chain Sampling Plan-1) and ChSP-2(Chain Sampling Plan-2)and
Link sampling plans indexed through AOQcc. Radhakrishnan and Esther Jenitha (2011a, 2011b, 2011c,
2011d) constructed CSP, CSP-3, CSP V (i-2x), T CSP-3 plan indexed through AOQcc which is the
convex combination of AOQL and MAAOQ with the gain parameter (0< <1). In this paper a
procedure for the construction of continuous sampling plan of the type CSP-1 (c=2) indexed through
AOQcc is presented. This plan may safeguard the interests of both producer as well as consumer by
choosing a right combination using the gain parameter .
Glossary of Symbols
The symbols used in this paper are as follows:
N - Lot size
n - Sample size
i - Clearance number
f - Sampling frequency
- Gain parameter
p - Submitted lot quality of lot or process
c - Acceptance number
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p* - Maximum allowable percent defective
Pa(p) - Probability of acceptance for a given quality p
AOQ - Average Outgoing Quality
2. DEFINITION OF AOQCC
AOQcc is the convex combination of AOQL and MAAOQ with gain parameter suggested by
Radhakrishnan and Mallika (2009) as
AOQcc = AOQL+ (1- ) MAAOQ
3. OPERATING PROCEDURE OF CSP-1 (c=2) PLAN

The operating procedure of CSP - 1 (c=2) is as follows
Step l: Inspect 100 % of the units consecutively in the order of production and continue the
inspection until i successive units are found conforming.
Step 2: When i units in succession are found conforming, discontinue 100% inspection and
inspect units at rate f. Continue the sampling inspections until a total of c+1 sampled
units are found non-conforming.
Step3: When the number of non-conforming sampled units reaches c+1, discontinue the
sampling inspection, and revert to 100% inspection of units.
Step 4: Correct or replace all non-conforming units found with conforming units.
4. OPERATING CHARACTERISTIC FUNCTION

The OC function for CSP- 1 (c=2) Plan given by
Pa (p) = (c+2) qi /[ f +qi(c+1-f)], c=2
CONSTRUCTION OF CSP- 1 (c=2) PLAN INDEXED THROUGH AOQCC
The general procedure for designing CSP- 1(c=2) Plan indexed through a parameter AOQcc which is
a convex combination of AOQL and MAAOQ is given below:
Step 1: Determine MAPD, MAAOQ and AOQL for CSP - 1(c=2) for various values of n , i and
find R1 = MAAOQ/MAPD and R2= AOQL/MAPD.
Step 2: Find AOQcc = AOQL+ (1- ) MAAOQ for various values of and find AOQcc/MAPD.
Step 3: The results of Step 1 and Step 2 for MAPD = 0.0025, = 0.1 and = 0.6 using Excel
Packages are presented in Table 1.
5. SELECTION OF THE PLAN

Table 1 is used to construct the plan when the MAPD and AOQcc are specified. One can find
the ratio R3=AOQcc/MAPD and locate the value in Table1 under the column R3 (for fixed values of
MAPD = 0.0025, = 0.1) and the corresponding values of n and i are noted.
Example:
For a specified MAAOQ = 0.00128 and MAPD=0.0025 compute the ratio
R1=MAPD/MAAOQ=1.98 which is associated with i = 1690, n = 23 in Table 1 and f =1/n =0.043.
Hence the CSP- 1(c=2) Plan for specified MAAOQ = 0.00128 is i=1690 and f=0.043.
For a specified AOQL = 0.00154 and MAPD=0.0025 compute the ratio
R2=MAPD/AOQL=1.62 which is associated with i = 2467, n = 160 in Table 1 and f =1/n = 0.006.
Hence the CSP- 1(c=2) Plan for specified AOQL = 0.00154 is i=2467 and f=0.006.
For a specified value of MAAOQ = 0.00128, AOQL=0.00154 and =0.6, AOQcc=0.00146.
Compute the ratio R3=MAPD/ AOQcc =1.71 which is associated with i = 2080, n = 61 in Table 1
and f =1/n =0.016. Hence the CSP- 1(c=2) Plan for specified AOQcc = 0.00146 and =0.6 is i=2080
and f=0.016. The OC curves for the Example is presented in Figure 1
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Figure 1: OC curves for i=2467, f=0.006 (AOQL); i=1690, f=0.043 (MAAOQ); i=2080, f=0.01
6(AOQcc)
Explanation: In a Battery cells manufacturing company, if the producer fixes the quality level
MAAOQ as 0.00128 (128 defective battery cells out of 100000) and the consumer fixes the quality
level AOQL as 0.00154 (154 defective battery cells out of 100000) then the compromising quality level
AOQcc can be suggested as 0.00146 (146 defective battery cells out of 100000). Inspect 100 % of the
battery cells consecutively in the order of production and continue the inspection until 2080 successive
battery cells are found conforming. When 2080 battery cells in succession are found conforming,
discontinue 100% inspection and inspect battery cells at rate 0.016. Continue the sampling inspection
until a total of c+ 1 sampled battery cell are found non-conforming. When the number of non-
conforming sampled units reaches c+1, discontinue the sampling inspection, and revert to 100%
inspection of chalks. Correct or replace all non-conforming battery cells found with conforming
battery cells. The AOQ curve for the Example is presented in Figure 2.
Figure2: AOQ curves for i=2467, f=0.006 (AOQL); i=1690, f=0.043 (MAAOQ); i=2080, f=0.01
6(AOQcc)
CONCLUSION
This paper provides a new procedure for the engineers in the selection of CSP-1 (c=2) indexed
through a new parameter AOQcc, which is the convex combination of AOQL and MAAOQ with gain
parameter (0< <1). A table also constructed for the easy selection of the plans when the indexing
parameters, and gain parameter ( ) are known. It is possible that different sampling plans can be
suggested based on the choices of based on the expectations of consumer and producer with
respective AOQL & MAAOQ. The engineers after knowing the interest of producer and consumer can
search for the quality level AOQcc and select the appropriate plan. Further the producer can suggest a
plan which will have lesser sample size than the other plans, so that the cost of inspection may be less
and also safeguard the interests of the consumer, which can be understood from the OC (figure 1) and
AOQ (figure2) curves. Readymade Table is also provided in this paper for the engineers to take quick
decisions on the nature of the sampling plan when the quality level of the producer and consumer are
known. This study can be extended for constructing other sampling plans and the efficiency of these
plans can also be compared with the plans indexed through other parameters also.
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REFERENCES
[1]. Liberman, G.J. and Solomon, H. (1955). Multilevel Continuous Sampling Plan. The Annals of
Mathematical Statistics. Vol.26, No.4, PP. 686-704.
[2]. Mandelson, J. (1962). The Statistician. The Engineer and sampling plans. Industrial Quality
control. 19 5:12-15.
[3]. Mayer, P. L. (1967). A note on sum of Poisson Probabilities and an application. Annals of
Institute of Statistical Mathematics. 19: 537-542.
577
ATTAINMENT OF SUSTAINABLE DEVELOPMENT THROUGH GREEN
MANAGEMENT
Vennila Gopal, Assistant Professor, Nehru Arts and Science College, Coimbatore. 105
Dr. K. Shobha, Reader in Economics, Government Arts College, Coimbatore. 018
ABSTRACT
Sustainable Development - a development which balances the satisfaction of peoples
immediate interests and the protection of future generations interests explains the P. H. Collins
Dictionary of Economics. The concept is gaining its momentum. The World Business Council for
Sustainable Developments Vision 2050: The new agenda for business states Just 40 years from
now, some 30% more people will be living on this planet. For business, the good news is that this
growth will deliver billions of new consumers who want homes and cars and television sets. The bad
news is that shrinking resources and potentially changing climates will limit the ability of all 9 billion
of us to attain or maintain the consumptive lifestyle that is commensurate with wealth in todays
affluent markets. Today almost all big businesses around the world have started realizing the
importance of green management. Working individuals fail to recognize the association between work
and sustainable development. According to a study by Californias Alameda County, The typical U.S.
office worker uses more than 10,000 sheets of paper per year, which is about 2 cases of paper per
employee. With an average price of $40 for a case of standard copy paper, this is an $80 annual cost
per employee (http://ecopreneurist.com). Workplace is a suitable place to realize Green Management.
The present study makes significant contribution to awareness in relation to Green Management and its
practices at workplace. It also intends to propose ideas as provided by the respondents to make Green
Management more practical and acceptable.
Methodology
Based on random sampling technique, about 100 respondents were selected from Coimbatore
city. Only those who are working in organizations were selected. The responses were elicited through a
detailed interview schedule personally administered. Using the limited category response method, the
respondents were asked to mark their perception towards green management on a five point scale i.e.
Likert Scaling technique and factor analysis was used.
Findings
Out of 100 respondents, 68% were women and 96% were post graduates. The average age and
monthly income of the respondents was 29 years and 12100 respectively. An attempt to find
respondents eco friendliness revealed that only 28% of them disposed recyclable and non recyclable
wastes separately. Also only about 20% grew plants at their workplace.
In order to find the respondents responsibility towards Green Management, the present study
focused on finding their care towards conservation of resources in day to day work life. Green
Management methods were identified on three different bases namely Green Management through
reduction, Green Management through reuse and Green Management through recycle. Each
method was subdivided in to different acts in day to day work life. The different measures identified
under Green Management through reduction were (1) Store/ provide electronic form of documents
rather than printed ones (2) Do not print unless it is important and store most information in computers/
online (3) Email whenever and wherever possible (4) Copy and print back to back (5) Turn off office
equipment, computers and lights when not in use (6) Wear green ie. attire of organic fibres such as
cotton, silk, wool/hemp, etc. (7) Use water cooler than bottled water to reduce plastic purchases/ usage
(8) Bring your lunch and (9) Cycling to travel to work. Measures indentified under Green
Management through reuse and Green Management through recycle were (1) Purchase fully/
partially recycled paper (2) Reuse single sided paper for printing (3) Reuse unused printouts for
preparing documents (4) Use own mug/dishware for coffee/meals and (1) Use recycled paper (2) Use
recycled toner and ink cartridges and buy remanufactured one (3) Use rechargeable batteries in cell
phone, digital camera, and other digital devices (4) Use recycled plastics. To find how often the
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respondents took measures in their everyday work life to conserve resources, they were asked to
indicate their frequency of act on a five point scale as always, often, sometimes, rarely and
never. The responses given were weighted as 5, 4, 3, 2 and 1 respectively.
Apart from the above an effort was taken to find the level of awareness with regard to Green
Management on the concept of green management, methods/ techniques of green management,
Benefits of green management, Environmental issues and Environmental days such as Earth day,
etc.. The respondents were asked to indicate their level of knowledge on a five point scale as
Excellent, Above Average, Average, Below Average and Extremely Poor. The responses given
were given weights as 5, 4, 3, 2 and 1 respectively.
Factor analysis (FA) has been employed to explore the underlying factors associated with
items by using principal component analysis (PCA). Bartletts test of Sphericity was applied to the
constructs validity. Then again the Kaiser Meyer Oklin (KMO) measure of sampling adequacy was
employed to analyze the strength of association among variables. The KMO measure of sampling
adequacy was first computed to determine the suitability of using factor analysis to predict whether
data are suitable to perform factor analysis or not. Result of KMO (0.668) and Barletts test of
Sphericity (1760.749) revealed that both were highly significant and it was concluded that these
variables were suitable for the factor analysis.
Factor analysis was carried out on the peoples adoption of Green Management and their
related factors that are highly correlated. The below table suggests that the factors Green Management
through reduction, Green Management through reuse, Green Management through recycle and
Awareness level on Green Management accounted for 63.101% of the total variance. The factor
Green Management through reduction, which accounted for about 22.81% of the variation, can be
considered to be strongly associated with certain aspects of eco friendliness. These include Store/
provide electronic form of documents rather than printed ones (0.897), Do not print unless it is
important and store most information in computers/ online (0.860), Email whenever and wherever
possible (0.844), Copy and print back to back (0.815), Turn off office equipment, computers and
lights when not in use (0.678), Wear green ie. attire of organic fibres such as cotton, silk, wool/hemp,
etc. (0.540), Use water cooler than bottled water to reduce plastic purchases/ usage (0.510) and
Cycling to travel to work (0.473).
Table 1
Variables F1 F2 F3 F4
Store/ provide electronic form of
documents rather than printed 0.897
ones
Do not print unless it is important
and store most information in 0.860
computers/ online
Email whenever and wherever
0.844
possible
Green Management Copy and print back to back 0.815
through reduction Turn off office equipment,
computers and lights when not in 0.678
use
Wear green ie. attire of organic
fibres such as cotton, silk, 0.540
wool/hemp, etc.
Use water cooler than bottled
water to reduce plastic purchases/ 0.510
usage
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Cycling to travel to work 0.473
Purchase fully/ partially recycled
0.832
paper
Reuse single sided paper for
0.695
Green Management printing
through reuse Reuse unused printouts for
0.660
preparing documents
Use own mug/dishware for
0.648
coffee/meals
Use recycled paper 0.743
Use recycled toner and ink
cartridges and buy remanufactured 0.691
Green Management one
through recycle Use rechargeable batteries in cell
phone, digital camera, and other 0.640
digital devices
Use recycled plastics 0.630
On green management 0.764
Awareness level on On methods/ techniques of green
0.703
Green Management management
Benefits of green management 0.675
Extraction Method: Principal component Analysis
Rotation Method: Varimax with Kaiser Normalization
Rotation converged in 8 iterations
All variables has positive loading in the factor Green Management through reuse. The sign
of the loading indicates the direction of the relationship between the factor and the variable. The factor
which accounts for about 18.3% of the variation was named as Green Management through reuse
factor. This factor consists of sub variables namely Purchase fully/ partially recycled paper (0.832),
Reuse single sided paper for printing (0.695), Reuse unused printouts for preparing documents
(0.660) and Use own mug/dishware for coffee/meals (0.648).
The third factor is Green Management through recycle with a total variance of 11.47 which
consists of sub variables namely Use recycled paper (0.743), Use recycled toner and ink cartridges
and buy remanufactured one (0.691), Use rechargeable batteries in cell phone, digital camera, and
other digital devices (0.640) and Use recycled plastics (0.630).
The fourth factor is Awareness level of the people on green management with a total
variable of 10.49 which consists of sub variables namely On green management (0.764), On
methods/ techniques of green management (0.703) and Benefits of green management (0.675).
Factor matrix shows the factor loading of different variables. The loadings of all items are observed as
satisfactory for further analysis. Reliability alpha (0.76) also observed as satisfactory. Thus the four
factors Green Management through reduction, Green Management through reuse, Green
Management through recycle and Awareness level on green management are yielded and used as
independent variable in the analysis.
Regression analysis was used after extraction of four independent variables namely Green
Management through reduction, Green Management through reuse, Green Management through
recycle and Awareness level on Green Management from factor analysis. About 27% of variation of
green management was explained by these four independent variables with a significant value of 1.869
being significant at P < 0.000. It is evident that these four factors significantly affect the Green House
management. Regression results also shows that Awareness level on Green Management and Green
Management through recycle are accepted at 0.05 and 0.10 level of significance while the rest Green
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Management through reduction and Green Management through reuse is rejected. The result of
regression is shown below.
Table 2 Coefficient Values of Regression Analysis of Four Major Factors of Green Management
Standard
Descriptions t Test
Coefficients
Constant 1.102 1.592
Green Management through reduction -0.019 -0.970
Green Management through reuse 0.006 0.149
Green Management through recycle 0.091 2.514**
Awareness level on Green Management -0.089 -1.930***
Dependent variable: Green Management practices
Source: Calculations based on field survey.
Usage of recycle products appears statistically significant. Therefore it is accepted (0.05 level
of significance). The study again shows that the construct has direct negative effect. It indicates that the
awareness level on Green Management is low. Therefore awareness level is accepted at 0.10 level of
significance. In case of Green Management through reduction and Green Management through
reuse, it is rejected as it is not statistically significant.
The study also focused on the respondents view on steps for successful promotion of Green
Management at work place. They were given choices to rank according to their opinion. The measures
for promotion identified were (1) Sense of responsibility and commitment (2) Rigid policies and
programmes (3) Rewards for doing the right thing(4) Persons to motivate and drive changes (5)
Awareness on ways and benefits of green management and (6) Making wider availability of green
products.
Table 3 Steps for Successful Promotion of Green Management at Work Place
Mean
Steps for Successful Promotion Rank
Value
Sense of responsibility and commitment 2.44 1
Rigid policies and programmes 4.2 5
Rewards for doing the right thing 3.2 2
Persons to motivate and drive changes 3.28 3
Awareness on ways and benefits of green management 3.52 4
Making wider availability of green products 4.44 6
Source: Based on field survey, 2011.
The results revealed that it would be only the Sense of responsibility and commitment (rank
1), Rewards for doing the right thing (rank 2) and Persons to motivate and drive changes (rank 3)
would promote Green Management. Also measures like Awareness on ways and benefits of green
management (rank 4), Rigid policies and programmes (rank 5) and Making wider availability of
green products (rank 6) would help Green Management.
CONCLUSION
Global consumption patterns are unsustainable. Efficiency gains and technological advances
alone will not bring global consumption to a sustainable level but changes will also be required to
individuals consumption style i.e. their way they choose and use products and services. Sustainable
development through green management cannot be attained unless individuals have their own sense of
responsibility. Green Management should be widely publicized through education and mass media.
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MOBILE AD-HOC NETWORK (MANET)
A.Savitha, Asst professor, RVSCE, Renuga.A, III B.Sc-IT, Rose Mary College, Tirunelveli
ABSTRACT
Wireless mobile ad-hoc networks are characterized as networks without any physical connections. In
these networks there is no fixed topology due to the mobility of nodes, interference, multi path
propagation and path loss. A mobile ad hoc network (MANET) is a wireless network that uses multi-
hop peer-to-peer routing instead of static network infrastructure to provide network connectivity.
MANETs have applications in rapidly deployed and dynamic military and civilian systems. The
network topology in MANET usually changes with time. Therefore, there are new challenges for
routing protocols in MANETs since traditional routing protocols may not be suitable for MANETs. For
example, some assumptions used by these protocols are not valid in MANETs or some protocols
cannot efficiently handle topology changes. Researchers are designing new MANET routing protocols
and comparing and improvingexisting MANET routing protocols before any routing protocols are
standardized using simulations. However, the simulation results from different research groups are not
consistent with each other. This is because of a lack of consistency in MANET routing protocol models
and application environments, including networking and user traffic profiles. Therefore, the simulation
scenarios are not equitable for all protocols and conclusions cannot be generalized. Furthermore, it is
difficult for one to choose a proper routing protocol for a given MANET application.
Key Words: MANET, LAN, Node
INTRODUCTION
A mobile ad hoc network (MANET), is a self-configuring infra structurelessnetwork of mobile
devices connected by wireless links. ad hoc is Latin and means "for this purpose". Each device in a
MANET is free to move independently in any direction, and will therefore change its links to her
devices frequently. Each must forward traffic unrelated to its own use, and therefore be a router. The
primary challenge in building a MANET is equipping each device to continuously maintain the
information required to properly route traffic. Such networks may operate by themselves or may be
connected to the larger Internet.
The Mobile Ad hoc network is a collection of wireless mobile hosts forming a temporary
network without the aid of any established infrastructure or centralized administration.. Under these
circumstances, routing is much more complex than in conventional (static) networks. Many of the
possible solutions are determined by the characteristics of the media, the behavior of nodes and the data
flow. For a successful deployment, this is an important problem, since a wrong choice may have a
severe impact on the performance, and consequently on the acceptance of the new technology. Also,
providing just any protocol is not feasible, due to the different requirements on hardware and lower
network layers.
WHAT ARE MOBILE AD-HOC NETWORKS?

Mobile Ad-Hoc Networks (MANETs) are collections of mobile nodes, dynamically forming a
temporary network without preexisting network infrastructure or centralized administration.
Mobile nodes can be arbitrarily located and are free to move randomly at any given time.
No dedicated routers, aeach node in a MANET network acts as a router and is responsible for
discovering and maintaining routes to other nodes.
The primary goal of the MANET routing protocol is correct and efficient route establishment to
facilitate communication within the network between arbitrary nodes.
WHERE MANETS ARE USED?

For military and rescue use.
Information distribution for meetings, seminars etc.
Internet / intranet hot spots in public transportation.
Localized advertising and shopping.
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New mobile devices are invented constantly and used various ways.
CHARACTERISTICS OF MANET NETWORKS:

Dynamic topology: Nodes are free to move arbitrarely within the network (or leave and join
the network) causing random topology changes which can happen rapidly at unpredictable
times.
Variable capacity links: Significantly lower link capacities compared to traditional hardwired
links.
Energy-constrained mobile nodes: Nodes usually operate on batteries a all operations must be
optimized for energy conservation.
Weakened physical security: More prone to physical threats than hardwired networks.
WHY TRADITIONAL ROUTING PROTOCOLS ARE NOT SUITABLE FOR MANETS?

MANETs are usually highly dynamic and heterogeneous mobile networks.
No pre-existing infrastructure.
No centralized administration.
Dynamic topologies.
Variable capacity links.
Energy-constrained nodes.
Limited physical security
TYPES OF MANET
Vehicular Ad Hoc Networks (VANETs) are used for communication among vehicles and
between vehicles and roadside equipment.
Intelligent vehicular ad hoc networks (InVANETs) are a kind of artificial intelligence that
helps vehicles to behave in intelligent manners during vehicle-to-vehicle collisions, accidents,
drunken driving etc.
Internet Based Mobile Ad hoc Networks (iMANET) are ad hoc networks that link mobile nodes
and fixed Internet-gateway nodes. In such type of networks normal ad hoc routing algorithms don't
apply directly
SOME APPLICATIONS OF MOBILE AD-HOC NETWORKS

The field of wireless networking emerges from the integration of personal computing, cellular
technology, and the Internet. This is due to the increasing interactions between communication and
computing, which is changing information access from "anytime anywhere" into "all the time,
everywhere." At present, a large variety of networks exists, ranging from the well-known infrastructure
of cellular networks to non-infrastructure wireless ad-hoc networks.
Unlike a fixed wireless network, wireless ad-hoc or on-the-fly networks are characterized by
the lack of infrastructure. Nodes in a mobile ad-hoc network are free to move and organize themselves
in an arbitrary fashion. Each user is free to roam about while communicating with others. The path
between each pair of the users may have multiple links, and the radio between them can be
heterogeneous. This allows an association of various links to be a part of the same network. Mobile ad-
hoc networks can operate in a stand-alone fashion or could possibly be connected to a larger network
such as the Internet.
Ad-hoc networks are suited for use in situations where an infrastructure is unavailable or to
deploy one is not cost effective. One of many possible uses of mobile ad-hoc networks is in some
business environments, where the need for collaborative computing might be more important outside
the office environment than inside, such as in a business meeting outside the office to brief clients on a
given assignment. Work has been going on to introduce the fundamental concepts of game theory and
its applications in telecommunications. Game theory originates from economics and has been applied
in various fields. Game theory deals with multi-person decision making, in which each decision maker
583
tries to maximize his utility. The cooperation of the users is necessary to the operation of ad-hoc
networks; therefore, game theory provides a good basis to analyze the networks. Network topology like
star, ring, bus, linear can also be adapted by Ad-hoc protocol.
A mobile ad-hoc network can also be used to provide crisis management services applications,
such as in disaster recovery, where the entire communication infrastructure is destroyed and resorting
communication quickly is crucial. By using a mobile ad-hoc network, an infrastructure could be set up
in hours instead of weeks, as is required in the case of wired line communication. Another application
example of a mobile ad-hoc network is Bluetooth, which is designed to support a personal area network
by eliminating the need of wires between various devices, such as printers and personal digital
assistants. The famous IEEE 802.11 or Wi-Fi protocol also supports an ad-hoc network system in the
absence of a wireless access point.
CONCLUSION
Mobile ad-hoc networks allow the construction of flexible and adaptive networks with no
fixed infrastructure. These networks are expected to play an important role in the future wireless
generation. Future wireless technology will require highly-adaptive mobile networking technology to
effectively manage multi-hop ad-hoc network clusters, which will not only operate autonomously but
also will be able to attach at some point to the fixed networks.
REFERENCES
1. http://compnetworking.about.com/cs/wirelessfaqs/f/adhocwireless.htm
2. http://www.webopedia.com/TERM/A/ad_hoc_mode.html
3. http://mobileoffice.about.com/od/glossary/g/ad-hoc-network.htm
4. Unikolsrd homepage http://www.olsr.orga
5. Uppsala University AODV implementation
http://user.it.uu.se/~henrikl/aodv/
6. MANET IETF working group
http://www.ietf.org/html.charters/manet-charter.html
7. INRIA OLSR page http://hipercom.inria.fr/olsr/
8. Protean Forge - OLSR software (CRC and NRL)
http://pf.itd.nrl.navy.mil/projects/olsr/
584
S.Arul Krishnan, M.Sc, MBA, M.Phil., Assistant Professor, Vel Tech Ranga Sanku Arts College,
E. Narmadha Student, Vel-Tech Ranga Sanku Arts College,
A. Haseena Begum Student, Vel-Tech Ranga Sanku Arts College,
ABSTRACT
ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes
of an organization into one single system. Usually ERP Systems will have many components including
hardware and software, in order to achieve integration, most ERP systems use a unified database to
store data for various functions found throughout the organization. ERP is a company-wide computer
software system used to manage and coordinate all the resources, information, and functions of a
business from shared data stores. ERP implementation, as a change initiative, is a challenge facing any
organization and requires strong support from top management and users. However, internal support is
inadequate to overcome client deficiencies in the resources and abilities essential to ERP
implementation, implying that the assistance of outside experts is inevitable. This study presents a
conceptual framework to investigate how human inputs (top management, users, and external
consultants) are linked to communication effectiveness and conflict resolution in the ERP consulting
process, as well as the effects of these factors on the quality of the system implemented. Through a
survey of 85 ERP implementation projects in Taiwanese manufacturers, the study demonstrates that
competent consultants can facilitate communication and conflict resolution in the ERP consulting
process and assist in improving ERP system quality. The findings indicate that top management
support indirectly enhances ERP system quality through its positive effect on conflict resolution in the
consulting process. The results also show that high user support enhances communication
effectiveness; however, communication effectiveness does not influence conflict resolution and ERP
system quality. The implications and the limitations of the study are discussed. . This paper focused on
tools, Advantages and Disadvantages, Limitations, Applications, Benefits, Current situation, and
Overview of ERP in MIS Development.
INTRODUCTION
Enterprise Resource Planning is an integration of business management modules and user
friendly technology. ERP is a well managed centralized data storage house which acquires information
from and supply information for complete computing solutions at universal level. In large business
organization it's a diffcult task to manage various data at different servers. ERP helps to manage data
under one common platform. ERP software solutions are essential for optimizing costing accuracy for
the benefit of making decisions on day to day operations. A management information system (MIS) is a
system that provides information needed to manage organizations effectively.
An ERP system has a service-oriented architecture with modular hardware and software units
or "services" that communicate on a local area network. The modular design allows a business to add
or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared
database that may be centralized or distributed.
The term ERP originally referred to how a large organization planned to use organizational
wide resources. In the past, ERP systems were used in larger more industrial types of companies.
However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any
type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type
of organization - large or small.
Tools of ERP in MIS Development
Purchase
Manufacturing
Inventory/Stores
Finance/Accounting
Production
Maintenance
Administration
585
Advantages and Disadvantages of ERP Systems in MIS Development:
There are many advantages of implementing an EPR system in MIS Development. Some of them
are listed here:
Improved customer service and satisfaction.
Improved productivity, speed and performance.
Enhanced tracking and forecasting.
Improved efficiency, performance and productivity levels.
Design engineering order tracking from acceptance through fulfillment.
The revenue cycle from invoice through cash receipt.
Managing interdependencies of complex Bill of Materials.
Tracking the 3-way match between Purchase orders, Inventory receipts, and costing.
The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular
level.
Disadvantages of ERP:
Many problems organizations have with ERP systems are due to inadequate investment in ongoing
training for involved personnel, including those implementing and testing changes, as well as a lack of
corporate policy protecting the integrity of the data in the ERP systems.
Limitations of ERP in MIS Development:

Limitations of ERP include:
Personnel turnover:
o Companies can employ new managers lacking education in the company's ERP
system, proposing changes in business practices that are out of synchronization with
the best utilization of the company's selected ERP.
Customization of the ERP software is limited.
o Some customization may involve changing of the ERP software structure which is
usually not allowed.
Re-engineering of business processes to fit the "industry standard" prescribed by the ERP
system may lead to a loss of competitive advantage.
ERP systems can be very expensive to install often ranging from 30,000 to 500,000,000 for
multinational companies.
ERP vendors can charge sums of money for annual license renewal that is unrelated to the size
of the company using the ERP or its profitability.
Technical support personnel often give replies to callers that are inappropriate for the caller's
corporate structure. Computer security concerns arise, for example when telling a non-
programmer how to change a database on the fly, at a company that requires an audit trail of
changes so as to meet some regulatory standards.
ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and
business process of some companiesthis is cited as one of the main causes of their failure.
Systems can be difficult to use.
Systems are too restrictive and do not allow much flexibility in implementation and usage.
The system can suffer from the "weakest link" probleminefficiency in one department or at
one of the partners may affect other participants.
Many of the integrated links need high accuracy in other applications to work effectively. A
company can achieve minimum standards, and then over time "dirty data" will reduce the
reliability of some applications.
Once a system is established, switching costs are very high for any one of the partners
The blurring of company boundaries can cause problems in accountability, lines of
responsibility, and employee morale.
Resistance in sharing sensitive internal information between departments can reduce the
effectiveness of the software.
586
There are frequent compatibility problems with the various legacy systems of the partners.
The system may be over-engineered relative to the actual needs of the customer.
APPLICATIONS
Enterprise systems:
o Enterprise systems, also known as enterprise resource planning (ERP) systems
provide an organization with integrated software modules and a unified database
which enable efficient planning, managing, and controlling of all core business
processes across multiple locations. Modules of ERP systems may include finance,
accounting, marketing, human resources, production, inventory management and
distribution.
Supply Chain Management:
o Supply Chain Management (SCM) systems enable more efficient management of the
supply chain by integrating the links in a supply chain. This may include suppliers,
manufacturer, wholesalers, retailers and final customers.
Customer Relationship Management
o Customer Relationship Management (CRM) systems help businesses manage
relationships with potential and current customers and business partners across
marketing, sales, and service.
Knowledge Management System
o Knowledge Management System (KMS) helps organizations facilitate the collection,
recording, organization, retrieval, and dissemination of knowledge. This may include
documents, accounting records, and unrecorded procedures, practices and skills.
Benefits of an ERP implementation:

The benefits of an ERP implementation, a number of considerations must be evaluated. These include
considering:
both the current and future/growth business requirements
the appropriate trade-off between application software complexity and related user needs
an assessment of the "time-to-benefit" for key business processes in the organization's
strategic plans;
the key metrics that indicate relative application software complexity and time to benefit, such
as the historical ratio of consulting dollars to initial license fees the software version of the
application being selected
the stability of the software vendor;
the ability of the organization to devote sufficient resources over time;
the involvement of key users in the planning process producing a specific, measurable,
achievable, realistic, time-oriented project plan and budget; and
Selecting application software certified implementation consultants with relevant industry
experience.
30% of those surveyed did not realize any sort of staff reductions after go-live
18% did not measure benefits after go-live
28% had some type of problem or operational stoppage after go-live
Current situation of ERP in MIS Development:
The current situation of ERP:
Over 42 per cent indicated that additional user training, better skilled people, and/or change
management are required to fully leverage ERP;
32 per cent indicated that changing or standardizing processes, organizing differently,
changing the work culture, or "adapting to the power of ERP" are necessary to leverage ERP;
32 per cent indicated that full implementation, better integration, or economies of scale are
necessary.
587
Overview of Marketing Management Information System (MIS) in ERP:
Inputs to Marketing MIS in ERP Development

Strategic plan and corporate policies
The TPS (Transaction Processing Systems)
External sources:
o The competition
o The market
Inputs to the Human Resource MIS
Strategic plan or corporate policies
The TPS(Transaction Processing Systems):
o Payroll data
o Order processing data
o Personnel data
External sources
Human Resource MIS Subsystems and Outputs
Human resource planning
Personnel selection and recruiting
Training and skills inventory
Scheduling and job placement
Wage and salary administration
CONCLUSION
The success of the system is fully dependent on how the workers utilize it. This means they
must be properly trained, and a number of companies have attempted to save money by reducing the
cost of training. Even if a company has enough money to implement ERP, they may not be able to
successfully use it if they do not have enough money to train their workers on the process of using it.
One of the biggest problems with ERP is that it is hard to customize. Very few companies can
effectively use ERP right out of the box. It must be modified to suit their needs, and this process can be
both expensive and tedious. Even when a company does begin changing the system, they are limited in
what they can do.
588
THE CONCEPT OF INFORMATION OVERLOAD ISSUES AND CHALLENGES
Dr.S.Chandrakumaramangalam., Asst. Prof. Department of MBA, Anna University, Cbe.
Mrs.P.Nalini, Asst. Prof. Department of MBA, Velalar College of Engg. and Tech., Erode.
Abstract: The term information overload is often used to convey the simple notion of receiving too
much information simultaneously through different channels on diverse matters leading to a perception
of being overwhelmed and confused.
Within the research community, this everyday use of the term has led to various constructs,
synonyms, and related terms, such as cognitive overload, sensory overload, communication overload,
and information fatigue syndrome. There are a number of factors that cause information overload or
lack of clarity about information needs, or lack of awareness about the source of availability of the
required information etc. Impact of information overload on the executives of an organization is the
stress it causes at all levels in organization involving significant human cost. It is also necessary to
develop making process of the board and top management of an organization. The ultimate objective of
any organization is developing a comprehensive information system to enable the users to take
informed decisions to solve problems, improve productivity and creativity.
Key words: Information overload, information system, decision making.
INTRODUCTION :
Information overload has reached such a proportion that it needs to be addressed. It is a big
problem for living in this information age. As the number of information channels grows and amount
of information increases, managing it becomes difficult and eventually, it leads to information
overload. It occurs due to access to lots of information on diverse matters simultaneously. Very often
one does not know the authenticity of the content and sometimes even its source. Much of the
information is nothing but raw data, just a fact, a number or a statement without any relation to
something or a context.
What one needs is information which is useful to him in the context of his job requirements /
performance. Overload relates to collection of a large quantity of unnecessary information which has
no relevance or use to his present job or for taking a decision in the context of performance of the job.
Rather it creates confusion and stress and acts as a hindrance in the process of efficient decision
making.
The burden of a heavy information load will confuse the individual, affect his or her ability to
set priorities, and make prior information harder to recall (Schick et al, 1990). Figure 1 provides a
schematic version of this discovery. It is generally referred to as the inverted U-curve, following the
initial work of Schroder Driver, and Streufert (Schrodre et al. 1967).
Issues in Information Overload:

The main reasons for information overload at organizational and interpersonal levels can be
related to five constructs, as shown in Figure 2. These inductively generated constructs are the
information itself (its quantity, frequency, intensity, and quality), the person receiving, processing, or
communicating information, the tasks or processes that need to be completed by a person, team, or
organization, the organizational design (i.e., the formal and informal work structures), and the
information technology that is used in a company. Usually information overload emerges not because
of one of these factors but because of a mix of all five causes. All five causes influence the two
fundamental variables of information overload: the information processing capacity (IPC) and the
information processing requirements (IPR).
589
The factors responsible for information overload could be:
i. Lack of clarity about the information one needs for taking decision in the context of ones present
job;
ii. Lack of awareness about the availability of such information already in the organization;
iii. Lack of knowledge about the availability of such information is already available,
iv. Lack of knowledge as to whether such information is verified for authenticity and reliability.
v. Lack of an approved information retention policy.
vi. In the banking industry particularly due to rapid increase in the number of customers as a result of
Manage also control the need, sources and uses of information as also the cost of creating and
maintaining it vis a vis the benefit derived from it. It must also ensure effective policies and
systems of abolition.
Another important issue is to find out what kind of information the top Executives of an
organization need for decision making strategies and at what intervals. In several organizations the top
management receives too much information and suffers from the problem of information overload.
Executive Information System (EIS):

To sort out this problem, the people responsible for providing information should sit with the
Top Management personnel and find out what kind of information they need, at what interval and in
what format. On the basis thereof, they should develop a precise format popularly known as Executive
Information System (EIS) in contrast to the Management Information System (MIS). It should contain
in a simple and concise format all information which is relevant, accurate, authentic and timely.
Some organizations have a system of providing the days news update to the Top Management. Several
Practices are in vogue for this purpose. In some organizations, cuttings from different newspapers are
put in a folder for circulation. They are neither classified nor scrutinized to avoid duplication. As a
result, the Executives are saddled with a huge file containing cuttings on the same topic from various
newspapers. The duplication and sheer bulk frighten the Executive. He becomes eager to dispose it of
like any other routine file. He just sees the first item puts his signature and pushes it into the tray for
disposed of items. Then it travels to the desk of the next Executive and when it reaches the last
Executive in the circulation list it is the 2nd or 3rd day. Such information does not serve any purpose
except creating an avoidable information overload.
To avoid such a situation, one may think of sending one page containing headlines of the news
together with the reference of the newspaper in which it appears. Copies thereof may be to the relevant
executives simultaneously.
CONCLUSION
It is unlikely that one perfect answer can be found to reduce or eradicate the problem of
information overload. If it is beginning to be seen as less of a problem, as highlighted by the latest
Reuters report, (at least in the Western world), perhaps this may be that people are just learning to live
with it and are less likely to complain if it has become an accepted state. Further research carried out
among business organisations would be valuable to determine the extent of information overload
currently being experienced and what strategies are being used to combat this problem.
A. Edmunds, A. Morris / International Journal of Information Management 20 (2000) 17}28For

example, intranets are increasingly being viewed as a way to combat information overload, although
some in the literature suggest they may just add to the problem. Research into the elects intranets are
having upon information management in businesses would provide useful evidence of whether they are
one factor that may help to reduce information overload in businesses. The measures suggested in the
literature that may help to reduce the problem of information overload include the adoption of personal
information management strategies; further use of push technology, and intelligent agents; an increased
use of value-added information (either produced by software and/or information specialists); and the
implementation of information management and knowledge-based information management strategies.
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Evidence suggests a growing recognition of latter which involves sharing and utilising company-wide,
valid, valuable information. It is to be hoped that through a holistic approach to handling information,
information overload may become less of a burden. Meanwhile, perhaps we can all question ourselves
as to whether we too, albeit inadvertently, sometimes add to someone else's overload of information.
REFERENCES
Allen, T. J. (1977). Managing the #ow of technology: Technology transfer and the
dissemination of technological information
within the R & D organization. The Massachusetts Institute of Technology.
Badenoch, D., et al. (1994). The value of information. In M. Feeney, & M. Grieves, The value
and impact of information (pp. 9}77). West Sussex: Bowker Saur.
Belfourd, T., & Furner, J. (1997). Fast learners or time wasters? Intelligent agents on the Web:
A user study. Managing Information, 4(9), 32}34.
Bentley, T. J. (1998). In Managing information * Avoiding overload (p. 37). London: CIMA.
Butcher, H. (1995). Information overload in management and business. IEE Colloquium
Digest No. 95/223, London (pp. 1}2).
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5S A CHALLENGE FOR EVERY HUMAN
Dr. A.G.Sudha Associate Professor, MBA Department, Velalar College of Engg & Technology, Erode
Dr.L.Manivannan Associate Professor and Research Advisor, Erode Arts College, Erode
ABSTRACT
Normally people say that 5S is a concept widely used in manufacturing and industrial plants.
But the real fact is 5S can be implemented in any type of business, from a retail store to a power plant
from hospitals to television stations all types of businesses, and all areas within a business.
Beyond all 5S is a personal disciplinary development that promotes attitudinal changes and habits. It
can be applied in industries if it is practised in personal, home and social life.
INTRODUCTION
The most predominant used concept in todays industries especially in manufacturing is 5s. 5S
is the name of a workplace organization methodology that uses a list of five Japanese words which are
seiri, seiton, seiso, seiketsu and shitsuke.
Meaning for 5S
Seiri - Sort
Seiton - Straighten / Set In Order / stabilize / simplify
Seiso - Shine / sweep / systematic cleaning and maintenance
Seiketsu - Standardize / simplify
Shitsuke -Sustain
PRINCIPLES REVEALED IN 5S
Principle 1 - Sort
Why to sort?
To eliminate unnecessary items
To free floor space for the required items
To reduce your inventories (be they supplies or work in process)
To free resources (things that other areas might need and not have)
How to sort?
Go through all tools, materials, instruction and so forth in the plant / work area.
Categorise essential and non-essential items
Prioritize things as per requirements and keep them in easily-accessible places.
Eliminate / discard what is not required
What to sort?
Stock, Machinery, Equipment, Tools, Furniture, Stationery, Locations, Others
5S CONCEPT
Principle 2 - Set in order, Straighten, Simplify
Why to set in order?
There should be a place for everything and everything
should be in its place.
The place for each item should be clearly labeled or
demarcated.
Items should be arranged in a manner that promotes
efficient work flow, with equipment used most often
being the most easily accessible.
Workers should not have to bend repetitively to access
materials.
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Each tool, part, supply, or piece of equipment should be kept close to where it will be used
in other words, straightening the flow path.
How to set in order?

Identify why the items are located and where?
Assess whether is it a better location?
Analyse either the item in closed or open space makes sense.
Are the frequently used items easily accessible?
Are the tools and equipment close at hand?
Principle 3 - Sweep, Shine, Systematic cleaning

Why to clean?
It improves overall plant safety for obvious reasons.
It helps with TPM (Total Productive Maintenance).
It promotes pride in people, it boosts morale.
How to clean?
Keep the workplace tidy and organized.
At the end of work, clean the work area and be sure that everything is restored in its place.
Maintaining cleanliness should be part of the daily work not an occasional activity initiated
when things get too messy.
Principle 4 - Standardize
Why to standardize?
Work practices should be consistent and standardized.
All work stations for a particular job should be identical.
All employees doing the same job should be able to work in any station with the same tools
that are in the same location in every station.
Everyone should know exactly what their responsibility is for adhering the first 3 S's.
Promotes discipline and adherence to standards.
How to standardize?
Think about simple solutions.
Make up your own standards.
Use a certain color and material to mark locations
Certain labels to identify items, etc.
What exactly should you have?
Cleaning schedule
Visual controls to let people know what goes where
Ways to prevent the area from getting dirty
Audit schedule
Checklists and results posted
Principle 5 - Sustain
Why to sustain?
To maintain what has been adopted in the workplace.
Lack of discipline (some employees avoid cleaning and straightening at all costs)
The checklists are not followed or are not created clearly and to the point
The audit was not done consistently and properly
The results of the audit were not communicated and nobody was assigned to fix the problem,
with a deadline
The employees were not trained properly in 5SThe employees were not made responsible for
5S. They are not "owners" of the operation
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Recognition and rewards were not in place.
How to sustain?
By instituting a 5S audit process.
Maintain and review standards.
5S at Workplace
Benefits of 5S
Eliminate Waste
Increase Productivity
Increase Efficiency
Better Organization
Increase Your Office Workers Morale
A Clean Work Environment
5S Eliminates 7 Wastes in the Office
Over Production More information than the customer needs, more information than the
next process needs, creating reports no one reads, or making extra copies
Transportation Retrieving or storing files, carrying documents to and from shared
equipment, taking files to another person, or going to get signatures
Motion Searching for files, extra clicks or keystrokes, clearing away files on the desk,
gathering information, looking through manuals and catalogs, or handling paperwork
Waiting Waiting for faxes or a copy machine, for the system to come back up, for a
customer response, or a handed-off file to come back.
Unnecessary Processing Creating reports, repeated manual entry of data, use of outdated
standard forms, or use of inappropriate software
Inventory Files waiting to be worked on, open projects, too many office supplies, e-mails
waiting to be read, or unused records in the database
Defects Data entry errors, pricing errors, missing information, missed specifications, or lost
records
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5S in Personal Life 5S in Hospital
IMPLEMENTING 5S
Set the momentum. Understand the philosophy thoroughly and look at the deficiency of the current
situation. Resistance to change may hinder the adaptation of 5S, however, it is important to build the
courage and mindset that change is for the better rather than the worse.
Make it a habit. 5S should become part of an individuals life to make it successful. Thus, it is an
attitudinal change to every individual who practices this philosophy. When an individual begins to
practice 5S, it will then gradually become a routine that he / she will use in daily life.
Practice makes perfect. As the Chinese proverb say, Sharpen the tools in order to do work
effectively. If we can standardize the best practice, it can greatly facilitate in improving work
efficiency and building up competitive advantage in advancing our competitors in this fast-moving
business environment.
The Kaizen Way. 5S has close interrelationship with Kaizen another Japanese management
philosophy, which advocates continuous improvement. Setting up the best practices does not mean
being the best in the market already. It requires never-ending effort to improve in all aspects since the
world is changing in an exponential rate.
Overall, periodic evaluation is an efficient measurement tool in assessing the effectiveness of

such philosophy. Due to the advance of technology and the fast-moving business environment,
management practice needs to be flexible and adaptable to change whenever required. Although the
management oncept may remain status quo, the substance and methodology may require modification.
In this case, management needs to bear in mind that no single management philosophy is applicable in
all settings, but each type of management philosophy can be applied to every kind of setting with
appropriate adjustments.
CONCLUSION
5S is a backbone of other management philosophies. It grows from individual level and then
expands to organizational level. When the individual performs well, it will also create an influential
impact to his / her peers. Alongside with encouragement and recognition, management can easily
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promote expected behaviors from staff. On the other hand, employees have a better idea of what they
need to achieve to demonstrate their competencies. In brief, the 5S theory supports and maintains the
performance management system. 5S enhances work efficiency, where such improvement can
eventually be translated into quantitative data to measure the magnitude of changes. A successful
launching of 5S relies heavily on self-discipline and continual maintenance of individuals. It also
requires active promotion, reminder and strict discipline at all times.
REFERENCES
http://elseinc.com/5S-Principles.html
http://en.wikipedia.org/wiki/5S_(methodology)
http://ezinearticles.com/?5S-in-the-Office-Today&id=2234778
http://tpslean.com/images/5s1.jpg
http://www.articlesbase.com/six-sigma-articles/5s-in-the-office-today-871692.html
http://www.ehow.com/how_5834440_5s-home.html
http://www.ehow.com/list_6160728_benefits-5s-implementation_.html
http://www.emsstrategies.com/dm103103article.html
http://www.envision-hc.com/jan_2003_e.pdf
http://www.gembapantarei.com/7.PNG
http://www.graphicproducts.com/tutorials/five-s/
http://www.plant-maintenance.com/articles/5S.pdf
http://www.rtdonline.com/BMA/CSM/13.html
http://www.siliconfareast.com/5S.htm
http://www.techhelp.org/media/images/S5_gallery/5s%20not%20cluttered.jpg
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DIMENSIONS OF ORGANIZATIONAL CLIMATE AS INFLUENCING FACTORS
AMONG HOSPITAL NURSES
M.Lavanya, M.Phil., Doctoral Scholar, BSMED, Bharathiar University, Coimbatore
Dr.K.Malarmathi., Associate Professor, BSMED, Bharathiar University, Coimbatore
ABSTRACT
Nurses' perspective on organizational climate can affect job satisfaction and quality of care.
Organizational climate influences staffs' attitudes and behaviors in either positive directions, such as
productivity, satisfaction, and motivation, or negative directions, such as absenteeism, staff turnover,
and work accidents. Nursing in its broadest sense, may be defined as the provision of nursing care to
individuals, families or communities in connection with the restoration or preservation of health, and
comprising the nursing component or the organized health care and preventive services. Such care may
be provided by personnel ranging from the nursing aid to the professional nurse and nurse-midwife.
Introduction
The concept of organizational climate was first developed by Lewin, Lippitt and White
(1939). Our objective here is to identify and consider those climatic factors that influence
organizational creativity. Litwin & Stringer (1968) Organizational climate has a long history in
industrial and organizational psychology and organizational behavior. However, Kurt Lewin was the
first researcher to study the concept and argued that behavior is a function of the person and the
environment. Gerber (2003) and Moran and Volkwein (1992) definitions were integrated and it states
that Organizational climate is defined as the shared perceptions, feelings and attitudes that
organizational members have about the fundamental elements of the organization, which reflect the
established norms, values and attitudes of the organizations culture and influences individuals'
behavior positively or negatively.
Climate represents the behavior, attitudes and feelings of the organization which in turn affect
its operational processes (or life) in terms of communications, problem solving, decision making and
how it learns. Increasing interest has been focused on understanding the role working conditions play in
terms of the serious issues facing hospitals today, including quality of patient care, nurse shortages, and
financial challenges. One particular working condition that has been the subject of recent research is
the impact of organizational climate on nurses well-being, including occupational health outcomes.
Nursing shortages have been related to both increased demand and decreased supply for workers. The
aging population and increased complexity of hospital care are increasing the demand of all health care
services. The decreased supply of qualified registered nurses (RNs) is related to an aging workforce,
problems with recruitment and retention of personnel, and difficulty in recruiting young people into the
nursing profession.
Nurse
Florence nightingale defined nursing as the act of utilizing the environment of the patient to
assist him in his recovery (Nightingale, 1860).
Registered Nurses
Registered nurses (RNs), regardless of specialty or work setting, treat patients, educate
patients and the public about various medical conditions, and provide advice and emotional support to
patients' family members. RNs record patients' medical histories and symptoms help perform
diagnostic tests and analyze results, operate medical machinery, administer treatment and medications,
and help with patient follow-up and rehabilitation.
Influencing Factors of Hospital Nurses

Caring is transpersonal in nature, involving the one caring as well as the one being cared
for. With nurses so fraught with multiple demands and pressures, many lose touch with their caring
mission. It leads to fatigue and disillusionment. Some remain in the job and these effects show in their
relationships (or lack of relationships) with patients, families and coworkers. Others leave in a cloud of
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cynicism and grief that may be personally damaging to the nurse and also discouraging to future
prospects for nursing careers.
Leadership
Professional nurses assume leadership and management responsibilities regardless of the
activity in which they are involved. Leadership is defined as the ability to influence others. The
ability to advocate for the client linked to the nurses leadership ability. The nurse may be a leader or
manager in the care of the individual client, the clients family, groups of clients, or the community.
Regardless of the setting, the nurse must demonstrate leadership and management skills in interacting
with nursing colleagues, nursing students, physicians and other health professionals. The purpose of
nursing leadership vary according to the level of application and they include
a) Improving the health status of individuals or families.
b) Increasing the effectiveness and level of care and
c) Improving the attitudes of citizens and legislators toward the nursing profession and their
expectations of it.
Leaders are responsible for the Organizations moral climate, which in effect, reflects the moral
development of the leader as well as the followers.
Motivation
Motivation implies action and energy. It can be protection or achievement oriented. Such as
doing just enough to keep your job or making an effort to produce at a high level over extended periods
of time. Leaders are identified by the ability to make things happen. If individuals are trying to perform
they are motivated. Action must be present, because wanting to do something does not always result in
moving to do so.
Motivation is an important factor on which organizational efficiency depends. It is a process

of arousing behavior, sustaining behavior & channeling behavior in specific course. It explains why
some people work hard & well whereas others perform poorly. In Nursing Management, nursing staff
need to be motivated to have quality patient care, to develop staff efficiency and to reduce absenteeism.
A nursing superintendent must reward the good nursing care given by staff nurse so that she is
motivated to work harder. Factors Affecting Motivation of Staff Motivation of staff is affected by three
critical factors.
The individual needs: The needs of an individual are important motivators. These make the
person work with enthusiasm & interest. The significant individual needs are:
Need for Power: Which results in a strong desire to influence staff, stimulate them to work,
making them achieve positions of leadership e.g. making the nursing supervisor wholly
responsible to take care of whole ward.
Need for Achievement: results in a desire to do something better or more efficiently than
others. People with a high need of achievement have an intense desire for success & equally
intense fear of failure. They want to be challenged, prefer to assume personal responsibility to
get work done and like to work for long hours. Training and orientation (refresher) course
increase this need. All the staff working in a particular area should be given equal chance to
attend the refresher courses related to that particular area.
Need for affiliation: - Some people derive pleasure from being loved and tend to avoid the
pain of being rejected by social group. They enjoy social relationships, intimacy, empathize
and help others in trouble. There is close intimacy when a staff nurse is allowed to plan and
decide patient care along with ward supervisor.
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Decision Making
Decision making as the art of determining in ones own mind upon an opinion or course of
action. Decision-making has to be done by nurses every moment since they are involved with the lives
of people. For nursing professional, they must engage in five distinct steps Most of us take a decision
on the basis of emotion rather than logic. Therefore, it is necessary for the top level nursing personnel
and the middle level nursing personnel working in a health organization or hospital to take decisions on
the basis of the steps.
1. Problem Identification
2. Problem Analysis
3. Determine possible Alternatives
4. Evaluate the impact of each Alternatives
5. Selection of an Alternative
Decision is the commitment of the decision-maker to act, thereby committing the personnel,
material and financial resources of the organization towards the action objectives.
COMMUNICATION
The communication is the transfer of information between or among people. The practice of
nursing utilizes constant communication between the nurse and the patient, the patients family, the
nurses co-workers, supervisors, and many others. Communication in nursing can be a complicated
process, and the possibility of sending or receiving incorrect messages frequently exists.
It is essential that we know the key components of the communication process, how to
improve our skills, and the potential problems that exist with errors in communication. Successful
communication has three major components: a sender, a receiver, and a message. In nursing, we
frequently have a great deal of information to send to others in a short period of time. To do this
effectively, we need to know that there are factors which could influence how our message is
interpreted. We must consider the setting in which the communication occurs, the past experiences and
personal perceptions of both the sender and receiver, the timing of the message, etc. Nurses spend the
most time with patients. Patients see nurses interactions with others on the care team and draw
conclusions about the hospital based on their observations. Also, nurses attitudes toward their work,
their coworkers and the organization affect patient and family judgments of all the things they dont see
behind the scenes. Without a positive nurse patient relationship, there cannot be patient and family
satisfaction. And there cannot be an environment that supports anxiety reduction and healing.
JOB SATISFACTION
Job satisfaction in staff nurses should be of great concern to any organization. Nurses hold the
majority of positions in most health care settings, and replacement of nurse personnel is costly and time
consuming. The current nursing shortage and high turnover is of great concern in many countries
because of its impact upon the efficiency and effectiveness of any health-care delivery system.
Recruitment and retention of nurses are persistent problems associated with job satisfaction. Numerous
factors influence job satisfaction, including: clinical duty/service and type of work, nursing care
delivery model, degree of professionalism, organizational climate, supervision and interpersonal
relationships, status, autonomy, repetition of duties, the nature of tasks to be performed, job outcomes
and pay
COMMITMENT
Nurses who considered leaving the organization most frequently thought about switching to
out-patient and hospital care; the least attractive area was the health centre ward. Weak commitment
was strongly associated with thoughts of leaving, and the intention to leave did actually signal leaving
the organization. Special attention should be paid to the physical environment of older nurses. The risk
of young nurses leaving the profession should be reduced by ensuring permanent work contracts and by
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defining their tasks so that they correspond to their professional training. Particular consideration
should also be given to health centre wards to make them more attractive to nurses.
Strengthening commitment: It is possible to strengthen nurses commitment by:
improving the organization of work;
arranging the work so that nurses can use their abilities in the optimal way;
offering good possibilities for further development;
ensuring opportunities for continuous professional training;
Increasing possibilities to influence the work.
GOALS AND OBJECTIVES

The first step in building a cohesive team to address collaboration was to identify goals and
objectives. As the team worked to accomplish that, the members decided that, in addition to improving
collaboration across various practice settings, the project should include an opportunity to promote
professional growth. study, specifically in analyzing program design and results. The planned project
had two goals. The primary goal was to build a collaborative nursing practice between inpatient and
outpatient practice settings that promoted a seamless, integrated process of meeting the educational
needs of patients with cancer and their support people. A secondary goal was to provide a unique
opportunity to enhance the inpatient hematology, oncology, and nurses' professional development.
Nurses are an essential piece of the medical system. From the moment a patient enters a doctor's office
or hospital, a nurse is there to comfort her, provide essential care and see her treatment through to the
end. Nurse practitioners have advanced degrees in medicine, beginning with a Master degree.
Nurse practitioners go beyond treating a patient when they perform health tests, analyze test
results, assess appropriate care and refer patients to advanced care programs. Nurse practitioners have a
career goal and objective to be a part of budding medical research. As studies are conducted and
treatment options improve or expand, nurse practitioners must keep up in order to modify their
practice. Nurse practitioners can also be a part of research teams at universities or hospitals, offering
their knowledge and expertise for use in the
Figure 1: Model on relationships between leadership, commitment and job
Satisfaction
CONCLUSION:
Organizational climate is important to social welfare administration because they provide the
critical links between organizational characteristics and service outcomes. Organizational climate is an
ingrained quality of the organizational entity that has experiential, influential and value driven
requisites for participants. Organizational climate has been defined as structural, perceptive, interactive
and cultural. The effect of nurse staffing and organizational support for nursing care causes
dissatisfaction among nurses. The Organizational Climate dimensions influences the nurses.
References:
http://findarticles.com/p/articles/mi_qa4036/is_200509/ai_n15666712/
http://www.quality-patient-experience.com/nurse-patient-relationship.html
http://www.eurofound.europa.eu/ewco/2005/12/FI0512NU03.htm
http://www.ehow.com/info_8648003_career-goals-objectives-nurse-practitioners.html
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KNITWEAR DEVELOPMENT THROUGH SKILL DEVELOPMENT OF THE
WORK FORCE OF TIRUPUR KNITWEAR INDUSTRY- A REPORT
Ms. Nisha P. V. & Dr. Rupa Gunaseelan
TIRUPUR KNITWEAR INDUSTRY

Tirupur popularly known as Banian City of the South India is located 60 kms away from
Coimbatore city. It is the largest cotton knitting cluster in the country a leading exporter and centre of
knitting garments and undergarments is well integrated employing around 3.5 lakh people directly and
about 2.5 lakh people indirectly. It has come a long way from a small cotton-marketing centre with a
few ginning factories to become a prominent cluster of small and medium manufacturing enterprises
gainfully engaged in the production and export of a range of knitted apparels.
DEFINING SKILL
Skill means the ability to apply knowledge and use know-how to complete tasks and solve
problems. In the context of the European Qualifications Framework, skills are described as cognitive
(involving the use of logical, intuitive and creative thinking) or practical (involving manual dexterity
and the use of methods, materials, tools and instruments)
KNITWEAR DEVELOPMENT
A host of factors come into play when considering development at an industrial level. This
kind of development calls for development at an individual level, at the level of the firm and at the
level of a cluster of firms where government policies and initiatives through various schemes, industrial
associations providing business services and training through training centres supported by the
government, private training centres and financial institutions interplay as a network and form the
backbone of industrial development.
Skills training can provide a means to balance supply and demand, to meet attrition rates of
workers as well as demand for new skills. Poor responsiveness by training organizations and industry
slowness to train can significantly contribute to a slow adjustment of supply. Shah and Burke, 2003
also identify a lack of reliable market information as a barrier to the rate of labour market response and
adjustments.
The skill level and educational attainment of the workforce determines the productivity as
well as the ability to adapt to the changing industrial environment. A majority of Indian workforce
does not possess marketable skills which is an impediment in getting decent employment and
improving their economic condition.
Supporting factors aiding skill development

Network of associations at Tirupur
In Tirupur one can easily find the culture of such associational voice across different levels of
the production process. There are about 22 associations involved in Tirupur that represent producers
and traders at varying degrees. Besides associations of exporters such as TEA, there are associations
representing various stages of production. There are several trade unions active in the town viz. CITU,
AITUC, INTUC, MLF, LPF and ATP. The associations participate in a number of negotiating
activities. Besides associations, trade unions and public agencies that facilitate contract enforcement,
there is a thick network of owners dependant on familial and caste ties with transactions drawn from
family relations.
THE TEXTILE COMMITTEE

The Parliament in its 14th year of the Republic enacted the Textiles Committee Act, 1963 (41
of 1963), which received the President's assent on 3rd December, 1963 and was published in the
Gazette of India on December 4, 1963. The Textiles Committee, as an organization, started functioning
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from 22nd August, 1964. By virtue of Section 3 of the Act, the Textiles Committee is a statutory body
with perpetual succession. The Textiles Committee is under the administrative control of the Ministry
of Textiles, Government of India.
Mission
The main mission is to promote quality and excellence in the Indian textile industry making it
globally competitive in addition to providing basic infrastructure and guidance to support and enhance
quality in the textile industry, providing facilities for testing of textiles, chemicals, dyes and effluents to
the textile trade and industry, generating consciousness about quality, especially eco-friendly textiles in
the industry, assisting the exporters by way of quality appraisal of the textile products and certification,
providing consultancy for implementation of ISO 9000 Quality Management Systems (QMS) and ISO
14000 Environmental Management Systems (EMS) and Social Accountability Management Systems
(SA 8000) in the textile industry, undertaking market research studies to assess the consumption and
demand of textiles in the country, promote consumer awareness about textiles, take up census/surveys
useful to the industry, the Government and policy planning bodies.
Functions
The Textiles Committee's main objective is to ensure the quality of textiles and textile machinery both
for internal consumption and export purposes.
The Textiles Committee, as corollary to its main objective of ensuring the quality of textiles and
textiles machinery has been entrusted with the following functions, under Section 4 of the Act:
To undertake, assist and encourage, scientific, technological and economic research.
To establish standard specifications for textiles, textile machinery and the packing
o materials.
To establish laboratories for the testing of textiles and textile machinery.
To provide training in the techniques of quality control.
To provide for the inspection and examination of textiles and textile machinery.
To promote export of textiles.
To collect statistics and
To advise the Central Government on all matters relating to textiles and textile
o machinery, etc.
The Textile Committee also functions in liasion with
Office of the Textile Commissioner and its field offices.
Textile Research Associations.
Export Promotion Councils.
Central Wool Development Board.
Jute Manufacturers Development Council.
Textiles trade and industry associations
APPAREL EXPORT PROMOTION COUNCIL (AEPC)

Incorporated in1978, AEPC is the official body of apparel exporters in India that provides
invaluable assistance to Indian exporters as well as importers/international buyers who choose India as
their preferred sourcing destination for garments. A quick look at how the Apparel Export Promotion
Council (AEPC) has been the moving force behind lot of achievements. From one office in 1978, it has
over 40 offices now in just a span of 30 years. From just being a quota monitoring entity, AEPC is
today a powerful body for the promotion and facilitation of garment manufacturing and their exports.
For Indian exporters, AEPC is quite literally a one-stop shop for information, technical
guidance to workforce and market intelligence. Members have access to updated trade statistics,
potential markets, information on international fairs and assistance in participating at these fairs. It also
plays a large role in identifying new markets and leading trade delegations to various countries.
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In recent years, AEPC has starting the grass root level training the workforce and supplying a
steady stream of man power to the industry; identifying the best countries to source machinery and
other infrastructure and brokering several path breaking deals for its members and finally helping
exporters to showcase their best at home fairs as well as be highly visible at international fairs the
world over. Twice a year, AEPC showcases the best of Indias garment export capabilities through the
prestigious India International Garment Fair, playing host to over 350 exhibitors. With AEPC's
expertise and all the advantages that India has, it makes for a truly win-win situation Indian exporters
grow stronger each year in their achievements, skills and proficiency, while international buyers get
superior solutions for their garment imports.
Mission, Vision & Values

AEPC is committed to satisfy the apparel exporters with the service efficiency in achieving
the growth of exports garments by exploring, sustaining & expanding global markets, becoming one
stop information centre providing export assistance to garment exporters and bridge the gap between
the exporters and overseas buyers through dedicated efforts of employees and continual improvement
of the quality management system. AEPC functions by the
Networking of AEPC members
Increasing the export volume
Increase in the number of export markets
Stabilization of exports
Providing trained manpower to apparel industry
Recommendation to the government for policy changes which are beneficial to the garment
industry.
TIRUPUR EXPORTERS ASSOCIATION (TEA)

Tirupur Exporters association was established when the momentum for exports started in the
year 1990, exclusively for those exporters of cotton knitwear who had production facilities in Tirupur.
The growth in exports is attributed to few visionaries who founded the TEA to solve the problems
faced by the industry. TEA has now grown into a strong body of exporters. Today TEA has a
membership of 691 life members and 155 Associate Members. The main focus is on
Multi lateral growth of knitwear industry and exports

Development of infrastructural needs for Tirupur
Implementation of schemes for the benefit of the society and public
Promotion of constructive co-operation with workers with fair division of rewards
General upliftment of quality of life of Tirupur
Services to foreign buyers

Conferencing and secretarial services
Helps in locating suitable suppliers
Helps in resolving disputes
Achievements
A trade fair complex of international standards to showcase knitwear collections of Tirupur
for various fairs related to the knitwear industry.
TEA Public School
NIFT-TEA Knitwear Fashion Institute catering to the Manpower needs of the industry at all
levels.
An Inland Container Depot for speedy and safe movement of cargo.
Netaji Apparel Park A huge knitwear manufacturing facility of International standards.
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TEA E-READINESS CENTRE (TEA-ERC)
E-Readiness is the level of preparedness of SMEs for using ICT in the way they do business
so that they can become a part of the global value chain. The main thrust is to create, distribute and
facilitate sharing of knowledge quickly and thoroughly. Efforts are on for creating an environment for
the easy adoption of ICT for which availability of infrastructure and a common platform for E-learning
is required. Setting up an E-readiness Centre is a step in this direction. E-Action plan has wide
institutional support from top fashion Institutes and aims at improving the ICT (Information and
Communication Technology) intervention by
improving managerial understanding and skills towards ICT understanding

improvement in the availability of ISVs and promotion and participation of SMEs in business
networks and e-market places.
coordinating proliferating merchandisers with suppliers
facilitating managers and entrepreneurs to establish networking with international design institutes
and designers.
improving customer service by faster delivery, decreasing inventory levels in warehouses and
introduction of automatic stock replenishment systems and easier communication.
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES-[MSME]:

The President under Notification dated 9th May 2007 has amended the Government of India
(Allocation of Business) rules, 1961.Pursuant to this amendment, Ministry of Agro and Rural
Industries and Ministry of Small scale Industries have been merged into a single ministry, namely,
Ministry of micro, small and medium enterprises
MSME-The Engine Of Inclusive Growth And Development

Worldwide, the micro, small and medium enterprises (MSMEs) have been accepted as the
engine of economic growth and for promoting equitable development. The major advantage of the
sector is its employment potential at low capital cost. The labour intensity of MSME sector is much
higher than that of the large enterprises.
Genesis
Clusters of micro, small and medium enterprises (MSMEs) are found in abundance across the
globe. Since the early nineties, cluster based development of MSMEs has been adopted in more than
fifty countries. The Foundation for MSME Clusters was conceptualized to contribute towards this
process of cluster based development of MSMEs and thus enhance their competitiveness, generate
sustainable employment and alleviate poverty. Subsequently, the Foundation was legally constituted as
a non-government, non-profit registered trust under the auspices of the Entrepreneurship Development
Institute of India (EDI), Ahmedabad, in the year 2005. The headquarters of the Foundation is in New
Delhi, India. It also has a regional office in Bhuvaneshwar, Orissa.
Mission
To assist institutions undertake effective and inclusive cluster based local area development in
developing and transition economies.
Objectives
The Foundation seeks to achieve the following objectives:
Cluster initiatives become inclusive.
Cutting edge methodologies, tools, information and resources are accessible
Effective linkages emerge between clusters and important thematic institutions in the area of
finance, infrastructure, environment, investment, R&D, social responsibility and local
governance
Trained and competent professionals and institutions are available to facilitate cluster-based
development
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Models of strong community based civil society organizations emerge to take up cluster based
sustainable development initiatives
Strategy
The foundation shall provide and enable the provision of services in the areas of advocacy,
advice, training and research by collaborating with international agencies, government institutions,
financial institutions, banks academic institutions, technical bodies, industry associations, non-
government associations and corporate entities interested in development of MSME through sub-
contracting and sourcing
Service divisions
Policy and strategy division
Clusters of MSMEs have been in existence for some time but cluster based development is a
recent phenomenon to be improved upon. This division works with policy makers and development
practitioners as to how cluster development approach can be applied and integrated effectively. It
specializes in cluster mapping, devising policies, defining focus and designing of support architecture
for impact making development initiatives and local economic development, drawing strength from
national and international experts.
Implementation coordination division

Coordination of field based projects among a variety of sectors with wide ranging
developmental objectives. It supports the local institutions by providing solutions emerging from
contextual need and usage of a basket of tools that the foundation experts have developed. The main
deliverables are methodologies, tool and field based solutions for striking impact in field based context.
Training and capacity building division

This division develops a range of training curricula and runs interactive courses and field
based training initiatives to develop a cadre of development professionals who can apply their
knowledge base for inclusive development. The foundation also undertakes training of trainers
programme for strengthening the capacities of resource institutions in India and abroad.
Services
Designing cluster based MSME development initiatives, mapping clusters in regions and
countries, conceptualization and implementation of related training programmes, monitoring,
evaluation and impact assessment of cluster initiatives, innovative action research in cluster
development, development of business development services, institutional capacity building for cluster
development, capacity building for industrial associations and non-governmental organizations and
undertaking policy and implementation research in cluster development
APPAREL TRAINING AND DESIGN CENTRE (ATDC)

INTEGRATED SKILL DEVELOPMENT SCHEME
This is an initiative under the integrated skill development scheme of MOT ( Ministry of
Textiles).The sector wise employment for all segments, including textiles, apparel, handicrafts,
handlooms, sericulture, jute etc, is projected to grow to a total of 45.19 million by 2011-12, which
means that an additional 12 million jobs could be created, of which 5 million will be in the core
technological areas of production activities in the textiles and apparel industry and the remaining 7
million in supporting and auxiliary services. Thus, the need for skilled and aptly trained workforce to
support the upward movement of the Industry becomes imperative.
Vocational Education and Training for Skill Development has increasingly become a matter of
national importance. The National Skill Development Policy is a step forward in this direction and the
Textile and Apparel Industry can seek considerable benefits for providing skills to the new entrants and
up skilling of the existing workforce.
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The National Skill Development Policys sectoral target is to train 100 lakh persons by 2022 in
the Textile Sector.
Create opportunities for all to acquire skills specially for youth, women and disadvantaged groups
Develop high quality skilled workforce relevant to current and emerging employment market
needs.
Enable establishment of flexible delivery mechanisms responsive to a wide range of stake holder
requirement.
Objectives of Integrated Skill Development Scheme for the Textile & Apparel Sector, Ministry of
Textiles, GOI
To address the trained manpower needs of Textile and related Segments
To increase the employability of residents of the target areas through imparting skills in the above
segments
To ensure the scheme is designed to cater to a wide range of skill sets required in various segments
as listed above, while simultaneously ensuring sufficient flexibility to meet the dynamic needs of
these segments for next five years
To create trainers pool by conducting advance training programmes at a cluster level.
To ensure training in design development programmes, which are critical for the production of
diversified products with innovative uses and improved quality to meet the changing market
trends.
THE ROLE OF ATDC UNDER THE INTEGRATED SKILL DEVELOPMENT SCHEME
APPAREL TRAINING & DESIGN CENTRE (ATDC)
ATDC has been nominated as the Nodal Agency under Component I of MOT, GOI Scheme to
take forward the envisaged mission. ATDC is a society registered under the Society Registration Act
under the aegis of Apparel Export Promotion Council and supported by Govt. of India. ATDC has the
Largest Vocational Training Network Pan India with close to 55 centres present near all major Apparel
and Textile producing hubs in the country covering a spread across 20 states. ATDC felt that education
has to take a micro-view while adopting a macro-focus. To align states and regions with larger national
vision, it is equally important to understand the special needs, unique strengths and discrepancies of
each region. With this view in mind ATDC announced the launch of SMART (Skills for
Manufacturing Apparels through Research and Training), an ATDC Training project under
ministry of textiles, GOI. The main focus is
o To provide Skilled Workforce to Industry and Employment to many
o To upgrade the skill level of existing workforce as per industry needs
o Higher Productivity efficiency and value addition of the industry
o Rural economy development and better quality of life
o Skilled workforce development for handloom and textile hubs
Key Features Of ATDC Smart Course Design

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SMART targets to fill the skill gap existing between unskilled labour and requirement of skilled labour
by industry by imparting training to youth who do not get an opportunity to go through traditional
education or vocational training.
The ultimate target is economy development and better quality of life.
The courses are specially designed to cover the contents of multiple NCVT courses.
Target group of SMART training
Rural and semi-rural unskilled population
Below poverty line youths
School drop outs
Unprivileged and disadvantaged women
The SMART courses are specially being designed to bridge the gap between Industry requirements and
skills of future work force. Technology particularly the use of multi-media will play a pivotal role in
facilitating personalised learning in each of the designed courses. The other courses are Embroidery,
Surface ornamentation and Value addition techniques.
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IL & FS (INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED)

Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading
infrastructure development and finance companies. IL&FS was promoted by the Central Bank of India
(CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI).
Over the years, IL&FS has broad-based its shareholding and inducted Institutional shareholders
including State Bank of India, Life Insurance Corporation of India, ORIX Corporation - Japan and Abu
Dhabi Investment Authority. IL&FS has a distinct mandate of catalyzing the development of
infrastructure in the country. The organization has focused on the commercialization and development
of infrastructure projects and creation of value added financial services.
From concept to execution, IL&FS houses the expertise to provide the complete array of
services necessary for successful project completion: visioning, documentation, development, finance,
management, technology and execution. Organizationally, the IL&FS Group has evolved along routes
perfectly configured to business requirements. Technical support and service groups provide
specialized expertise. Project development and sectoral companies house the ability to seed initiatives
and carry them through to completion. Strong core skills, the key to successful project development
and project financing across sectors, have been developed within the Group. These have aided IL&FS
in spreading its expertise across a variety of sectors, nationwide.
The Indian manufacturing industry is characterized by the predominance of Small and

Medium Enterprises (SMEs) located in clearly identifiable sector/product specific geographic clusters.
There are at least 350 such important industrial clusters. Cluster Development Initiative (CDI) has been
set up as a strategic business unit within IL&FS with the objective of undertaking the cluster
development programmes across industry clusters. The initiative is aimed at enhancing the
competitiveness of small and medium enterprises (SMEs) through a cluster based Public-Private
Partnership (PPP) approach.
Infrastructure Services include

Project Development, Project Implementation, Cluster Development, Environment and Social,
Education, Technology, Logistics and Fleet Management and Facility Management
Financial Services
Project Finance, Investment Banking, Private Equity, Trust & Fiduciary, Auto Infrastructure
and Depository, Custodian and Professional Clearing Services
Cluster development initiatives

The Government has launched several schemes to address the requirements of SMEs under
these schemes. Part of the cost for infrastructure development is provided. One such scheme is the
'Scheme for Integrated Textile Parks' (SITP) launched by the Ministry of Textiles, Government of
India. The Scheme provides financial support to the tune of 40% (not exceeding Rs.40crores) of the
project cost for development of the common infrastructure in a green field textile park to the
implementing SPVs. The objective is to develop at least 25 textile cluster parks, on PPP basis, across
the country during the next two years. The effectiveness and impact of such schemes will considerably
increase if appropriate institutional structures, mechanisms and processes to proactively build Public
Private Partnerships (PPP) are evolved so that the critical infrastructure problems in the clusters are
addressed in a time bound and commercially sustainable manner.
IL&FS has established an exclusive business unit called the Cluster Development Initiative
to address the infrastructure, market access, technology and finance requirements of SMEs through
development of modern industrial clusters in textiles, pharmaceutical, leather, light engineering,
agro/food processing, crafts and other industry verticals across the country. IL&FS has also been
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appointed as Project Management Consultant by GoI to set up 25 integrated textile park clusters in the
country. In particular, it has spearheaded the implementation of the Tirupur Area Development
Program where it has worked with the Tirupur Exporters Association, the Government agencies and
other stakeholders, in addressing key infrastructure bottlenecks.
The Indian manufacturing industry is characterized by the predominance of Small and

Medium Enterprises (SMEs) located in clearly identifiable sector / product specific geographic clusters.
United Nations Industrial Development Organization (UNIDO) estimates that there are at least 388
such important industrial clusters in the country covering the sectors such as textiles, leather etc, which
contribute a significant share of the countrys employment and exports. A singular constraint faced by
the SMEs in these clusters has been lack of adequate and quality infrastructure, which is adversely
affecting industrial competitiveness. It is in this context that IL&FS has established an exclusive
business unit namely, Cluster Development Initiative (CDI), with the primary objective of addressing
the critical infrastructure problems in SME industrial clusters on a commercially sustainable basis.
IL&FS, through Cluster Development Initiative, provides a broad range of turnkey services.
Developing appropriate institutional and financial structures for efficient implementation of the
Project.
Creating appropriate contractual structures for layout, design, detailed engineering, preparation of
cost estimates of the infrastructure facilities, bid documents, selection and appointment of
contractors / consulting firms for specific activities to ensure smooth implementation of the
project.
Raising funding for implementation either as public financed project/s or leveraging the budgetary
resources of the authority and government to attract private capital in infrastructure project/s.
Ensuring efficient utilization of these funds to create good quality infrastructure assets without cost
and time overruns.
Assisting to obtain reimbursement of Project specific funds and / or grants sanctioned by Central
and State Governments.
Establishing sustainable systems and contractual structures for effective operation and
maintenance of the Project.
MINISTRY OF LABOUR AND EMPLOYMENT

MODULAR EMPLOYABLE SKILLS (MES) Skill Development for informal sector:
The skill development at present is taking place mostly in the informal way, i.e. persons
acquire skill at the work-place when they help their parents, relatives and employers etc. Such persons
do not have a formal certificate and thus earn lower wages and are exploited by employers. They have
come through informal system due to socio-economic circumstances of the family and the compulsions
of earning a livelihood rather than attending a formal course. While their productivity is low, their
contribution to the national GDP cannot be ignored. If the country can create a system of certification
which not only recognizes their skills but also provides education and training in a mode that suits their
economic compulsions, it will not only benefit the workforce to earn a decent living but also contribute
to the national economy by better productivity of this workforce.
Very few opportunities for skill development are available for the above referred groups (out
of school youth & existing workers especially in the informal sector). Most of the existing Skill
Development programmes are long term in nature. Poor and less educated persons cannot afford long
term training programmes due to higher entry qualifications, opportunity cost etc. Therefore, a new
frame work for Skill Development for the Informal Sector has been evolved by the DGET to address to
the above mentioned problems.
Key features of the new frame work for skill development

Demand driven Short term training courses based on modular employable skills decided in
consultation with Industry
Flexible delivery mechanism (part time, weekends, full time)
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Different levels of programmes (Foundation level as well as skill upgradation) to meet demands of
various target groups
Central Government will facilitate and promote training while Vocational Training (VT).
Providers under the Govt. and Private Sector will provide training
Optimum utilization of existing infrastructure to make training cost effective.
Testing of skills of trainees by independent assessing bodies who would not be involved in conduct
of the training programme, to ensure that it is done impartially.
Testing & certification of prior learning (skills of persons acquired informally) The Short Term
courses would be based on Modular Employable Skills (MES).
The concept of MES

Identification of minimum skills set for employment in the labour market.
It allows skills up gradation, multi skilling, multi entry and exit, vertical mobility and lifelong
learning opportunities in a flexible manner.
It also allows recognition of prior learning (certification of skills acquired informally).
The modules in a sector when grouped together could lead to a qualification equivalent to National
Trade Certificate or higher.
Courses could be available from level 1 to level 3 in different vocations depending upon the need
of the employer organizations.
Target Groups
Workers seeking certification of their skills acquired informally
Workers seeking skill up gradation
Early school drop-outs and unemployed
Child labour victims and their family
The methodology of training would be a minimum of lecturing with emphasis on hands on

training. The training methods will be individual centered to make each person a competent one.
Opportunities for individual work will be provided. The learning process will be continuously
monitored and feedback will be provided on individual basis. Demonstrations using different models,
audio visual aids and equipment will be used intensively. Instructional media packages (IMPs)
developed by the National Instructional Media Institute (NIMI), Chennai will be provided for
maintaining uniformity and quality, nationwide.
ASSESSMENT
DGE&T will appoint assessing bodies to assess the competencies of the trained persons. The
assessing body will be an independent agency, which will not be involved in conducting the training
programmes. This, in turn, will ensure quality of training and credibility of the scheme. Keeping in
view the target of providing training/testing of one million persons throughout the country and to avoid
monopoly, more than one assessing bodies will be appointed for a sector or an area. Successful persons
will be awarded certificates issued by National Council for Vocational Training (NCVT).
SKILLS DEVELOPMENT INITIATIVE SCHEME- (SDIS)

At the national level, the Directorate General of Employment and Training (DGE&T),
Ministry of Labour & Employment (MoLE), is the nodal body for formulating policies, laying down
norms, standards, conducting trade test and certification of vocational training. The State Governments
through Industrial Training Institutes/Industrial Training Centres (ITIs/ITCs) impart institutionalized
vocational training under Craftsman Training Scheme, one of the flagship programmes run by the
DGE&T.
The vocational training system under the Ministry of Labour and Employment is one of the
most comprehensive systems in the country. Training to craftsmen is provided to youth with the
objective to prepare semi-skilled workers for the industry. It is implemented through a network of
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Government Industrial Training Institutes (ITIs) / Private Industrial Training Centres (ITCs) located in
various parts of the country. The educational qualification varies from class VIII pass to Class XII pass
depending upon the trades. The duration of training varies from six months to three years. The trainees
after completion of craftsmen training appear in the All India Trade Test to obtain National Trade
Certificate awarded by National Council of Vocational Training (NCVT), which is recognized for the
purpose of recruitment to the subordinate technical posts at the shop floor level within the country as
well as abroad.
The apprenticeship training is imparted under the Apprentices Act, 1961 in industrial
establishments to school leavers and ITI graduates with the objective to prepare skilled workers for the
industry. The educational qualification varies from class VIII pass to Class XII pass depending upon
the trades. The duration of training varies from one year to four years. All India Trade Tests for
apprentices are conducted under the aegis of NCVT. Successful apprentices are awarded National
Apprenticeship Certificate, which is a recognized qualification for recruitment to the shop floor level
subordinate technical posts within the country as well as abroad.
Two tripartite bodiesthe Central Apprenticeship Council (a statutory body) and the National
Council for Vocational Training (a non-statutory body) - advise the GOI on formulating policies and
procedures, and prescribing standards and norms for vocational training schemes. Both bodies have
representatives from the Central and State governments, employers organizations, workers
organizations and vocational training experts. Correspondingly, State Councils advise the State
governments in respect of vocational training at the State level. The National Council for Vocational
Training conducts All India Trade Tests (AITT).
OBJECTIVES
To provide vocational training to school leavers, existing workers, ITI graduates, etc. to
improve their employability by optimally utilizing the infrastructure available in Govt., private
institutions and the Industry. Existing skills of the persons can also be tested and certified
under this scheme.
To build capacity in the area of development of competency standards, course curricula,
learning material and assessment standards in the country.
Key Features of the Scheme

Demand driven short term training courses based on Modular Employable Skills (MES) decided in
consultation with Industry. MES is the minimum skills set which is sufficient for gainful
employment.
Central government will facilitate and promote training while industry, private sector and State
Governments will train the persons.
Optimum utilization of existing infrastructure to make training cost effective.
Flexible delivery mechanism (part time, weekends, full time, onsite/ offsite) to suit needs of
various target groups.
Different levels of programmes (Foundation level as well as skill up gradation) to meet demands of
various target groups.
The services of existing or retired faculty or guest faculty to be utilized.
Courses would also be available for persons having completed 5th standard.
Testing & certification of skills acquired informally.
Testing of skills of trainees by independent assessing bodies, which would not be involved in
training delivery, to ensure that it is done impartially.
The essence of the scheme is in the certification that will be nationally and internationally
recognized.
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Public Private Partnership (PPP)
Public Private Partnership (PPP) envisaged in the form of active participation of the industry /
Private Sector in every stage of design and implementation of the scheme. Industry bodies are
represented in the Central Apex Committee and State Committees which would have overall
responsibility of implementation of the scheme. Other areas of partnership are:
Forecasting of emerging areas of employment at micro level.
Development of course curricula of various trades.
Development of instructional material for training.
Assist in the training of trainers, wherever required.
Making available their training & testing facilities, wherever required.
Provide on the job training in their establishments.
Development of assessment standards.
Monitoring and Quality assurance.
Assistance in placement of graduates.
Provide trade experts to work as assessors of competencies.
Voluntary donation of equipment to the ITIs/other training institutions.
Providing guest faculty in new trades.
Target Group
workers seeking certification of their skills acquired informally
workers and ITI graduates seeking skill up gradation
early school drop-outs and unemployed
previously child labour and their families
RESULTS AND DISCUSSION

An introspection of data received from several institutions and associations and also the vast
amount of secondary data collected reveal that the Tirupur knitwear sector is a highly disorganized
sector, marked by severe scarcity of skilled labour. Institutional dynamics within the cluster
emphasizes trust to play a major role in transactions backed by familial relations
Although various talent development initiatives have been undertaken by the government by
way of offering support to the industry through various kinds of training and skill development
programmes, several of these programmes have insufficient takers. Various ministries in the
government play a role by way of opening local training centres or by having tie up with the existing
colleges or associations at Tirupur. The Ministry of Textiles, The Ministry of Labour and Employment,
Ministry of micro, small and medium enterprises (merging of former Ministry of Agro and Rural
Industries and Ministry of Small scale Industries ) are engaged in skill development, functioning by
way of committees, associations, schemes, institutes or training centres or by a combination of these.
These players are discussed here with reference to their contribution to skill development targeted to
the labour pool segment. Among these the MSME, ATDC, schemes such as MES (Modular
Employable skills), SDI (Skill Development Initiative), the ILFS (Cluster Development Initiative-
CDI), the MoLE (MES Scheme and SDIS), are specially targeted to the labour pool segment of the
knitwear sector. The other players namely the Textile Committee and Tirupur Exporters Association
deserve mention due to their contribution to the knitwear industry at large. Hence the performance of
the industry largely depends on how firms engage in collective action and create a dense network of
institutional norms which, increase the predictability of future transactions.
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BUSINESS ETHICS
Mrs. Anitha Assistant Professor, RVS College Of Engineering &Technology, Dindigul.
Mrs. K. Sabana Ashmin, Assistant Professor, RVS College Of Engineering & Technology, Dindigul.
Mrs. Anandhi, Assistant Professor, RVS College Of Engineering & Technology, Dindigul.
ABSTRACT
In the present scenario business ethics is playing a vital role across the world. It is termed as
written and unwritten codes of principles, rational, efficient and values that decide the harmless action
within an organization and also for environment.
This paper takes into factors such as cultural difference, codes of conduct, standards which
influence behavior and ethical outcomes. Ethical in international business, focuses on 2 perspective
such as teleological and denological methods. Teleological are based on estimating the given course of
action that has the most positive consequences and fewest negative consequences primary example of
teleological ethical thinking is utilitarianism. A deontological ethical method states that an action is
considered greatest of good because of the characteristic of the action, not because the product of the
action is good.
These methods help the managers to examine personal ethics and also help them understand
and work more effectively with others who have different ethical perspective. From the business point
of view we have to know the contribution of ethics in management strategies. One of the possible
ethics pertaining now in organization is environmental strategy that highly concentrates on eco-
labeling of products and environmental friendly products, where this have to be observed by universal
people to go only for eco-friendly business to avoid the impact on global warming.
INTRODUCTION
There are many possible sources of ethics. Relegious believers from different countries
probably contributed to ethical conduct. It is a form of professional ethics that includes principles and
morals that arise in business environment. Ethics is termed as written and unwritten codes of standards
,rational and efficient values that decide that harmless action for both inside and outside organization.
Ethics an important study in international management because ethical behaviour in one country may
be consider as unethical to other country. Two perspective such as teleological and denotological
methods are focused here. According to (Sinclair 1993)points out to ways of managing culture so that
it would be of ethical:
Creating strong individualized culture with ethical values.
Generating sub culture by department and groups with ethical values.
When Ethical behaviour is not shared by both manager and employees that do have positive ethical
values which research ethical value weak set of beliefs. The existence of non ethical culture will lead
changes which will stem from economic needs and not for ethical ones .
FACTOR INFLUENCING ETHICAL OUTCOMES

TRADITIONAL ETHICS
During historical periods it is observered that leaders who hold power in a society formulate
ethical rules. They are been considered themselves sacred claiming to be representatives of God or
other divinities. This practice reinforce their power. This improves the level of ethics for each
individual in the group. Then they upgrade ethics in large organization where leaders propose ethical
course of conduct on subordinates. A great religious Asiatic countires-Buddhists and others think that
it is possible to live as a saint without believing in monotheistic God. So there are many possible
sources of ethical origin each probably contributed to ethical conduct which is still practicing.
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CULTURAL DIFFERENCES
This term is frequently used to explain behavior and other differences when doing business in
cross borders. Some definitions brings on factors such as : People are born with learned culture and
can acquired through socialiation process. Learned culture is been communicated and transmited by
members within different groups. Various elements of culture are inter-related which match attitude
and beliefs resulting from experience.
For conducting international trade,organization has to manage across culture. It is desirable to

adopt according to prevailing situation in doing business. In other words immigration workers expected
to adopt western norms of behavior, dress and customs. (example)There would be no rooms for daily
prayer breaks for muslims which in turn means respecting individuals.
RELATION OF ETHICS TO JUSTICE
They are adjacent concepts. A company's reputation depends in part upon how it applies
social justice in dealing with employees and other third parties.
A leading scholar has written that the concept of justice arose in ancient Greece25 when there
were conflicts and disputes between the noblemen and the common people when the latter's economic
position improved.
In reaching justice, developed societies have usually codified the rules. Written rules are better
than unwritten rules because they guide the judge or group making the decision and make arbitrary
decisions more difficult to render. A written law tends to apply more naturally to all humans in society,
wealthy and poor. Written rules also help the parties in society to know in advance what is lawful
conduct. They can therefore better avoid unlawful conduct.
Justice can be defined as equality before the law. This means an unbiased judge and a
procedure designed to evoke the truth. Each party should be given an equal chance to prevail if his case
is just. Alternative dispute resolution often provides a more equitable way to find a solution to disputes
by taking each parties interests more into account than is possible in a court proceeding. Leibnitz's idea
of universal justice was charity or disinterested love, which he defined as finding pleasure in the
happiness of others The following are the ways to have mandatory principles for ethical outcome inside
and outside organization.
ETHICS CAN BE ENFORCED

Ethics tend to be enforced by law where the law is effectively enforced. With human nature
being imperfect i.e. selfish, envious, greedy, avaricious, violent and not always intelligent, even so-
called civilized societies need minimum rules of conduct enforced in practice by some authority.
Public opinion through boycotts or unfavorable publicity in the press can bring pressure on those in
violation of ethical principles as well.
Investors in ethical funds have begun to apply pressure by withholding investment in

companies in businesses considered unethical like tobacco, the arms industry and by imposing other
ethical criteria on investment companies.
Peer pressure by other companies also induces companies to be more ethical even though it is
to a certain extent "window-dressing". Competitive pressures motivate companies to keep up with their
peers in term of human relations and environmental conduct. Lawsuits have been filed to enforce
ethical conduct of many multinationals For (example )One leading oil company which also
manufactures chemicals, with activities in exploration and production, refining and marketing, has
taken a step to enforce the ethics set forth in its corporate code of conduct by providing for referral of
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ethical dilemmas to an Ethics Committee, ethics, seminars for managers and a review of ethical
performance by an unrelated company with United Kingdom accreditation27
ETHICS HAS TO BE TRANSMITTED AND FORMALIZED.

Ethical rules are transmitted orally in families and schools, through sacred texts, church
ceremonies, books on philosophy and other ways.Ethics, honesty and transparency are necessary to
insure shareholders and third parties are fairly informed about the financial situation of a company.
Ethical action needs to be based on general principles as well as on specific detailed rules which can
often be avoided , thus vitiating the protection of the public. Ethical rules are found in many forms, all
of which hopefully can improve conduct.
CONCLUSION
Every individual has to impart ethics and to practice where they work.this becomes a good
solution. Being ethical in business is a difficult exercise in weighing the business interests required to
survive and prosper against current or improving ethical principles, which, some believe, are being
more and more enforced by the free market system. Building corporate social responsibility into
mainstream management theory and practice is now necessary if our society is to improve but it
complicates the job for management because ethical expectations are now higher for businessmen and
their ethical obligations are not always clear. Ethical conduct needs to be based on a case by case study
of particular situations. The primary duty of business remains, nevertheless, to maximize profit for their
shareholders otherwise it will cease to exist. Despite these difficulties, the public now more and more
expects the private sector to fulfill its ethical and environmental obligations because it has become a
most important actor in modern society with a direct and serious impact on the public interest. Public
opinion expects it to produce a good result in all three of its balance sheets financial success, ethics,
social justice and sustainable development.
BIBLIOGRAPHY
Value Based Management -Dr. Enrique Claver, Dr.Juan Llopis
Management Concepts And Practices - -T Im Hannangan
The International Business Environment -Anant K.Sudraram/J.Stewart Black
A Commissioned Paper For The Unesco Forum On Higher Education, Research And Knowledge
-Wallace R. Baker,
615
STRATEGIC MANAGEMENT TOOLS IN GLOBAL SERVICES
Mr.S.SivaKumar Assistant Professor, Department of Commerce, Karpagam University,
Coimbatore21
Mrs.S.SathyaKala Assistant Professor, Department of Commerce, Karpagam University,
Coimbatore21
Introduction
Strategic management can be used to determine mission, vision, values, goals, objectives,
roles and responsibilities, timelines, etc.Strategic planning is a management tool, period. As with any
management tool, it is used for one purpose only: to help an organization do a better job - to focus its
energy, to ensure that members of the organization are working toward the same goals, to assess and
adjust the organization's direction in response to a changing environment. Finally, the process is about
fundamental decisions and actions because choices must be made in order to answer the sequence of
questions mentioned above. The plan is ultimately no more, and no less, than a set of decisions about
what to do, why to do it, and how to do it.
Evaluation of marketing action plan Strategy implementation

Allocation and management of sufficient resources (financial, personnel, operational support,
time, technology support)
Establishing a chain of command or some alternative structure (such as cross functional
teams)
Assigning responsibility of specific tasks or processes to specific individuals or groups
When implementing specific programs, this involves acquiring the requisite resources,
developing the process, training, process testing, documentation, and integration with (and/or
conversion from) legacy processes.
Strategy Evaluation
Measuring the effectiveness of the organizational strategy, it's extremely important to conduct
a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and
external) of the entity in question. This may require to take certain precautionary measures or even to
change the entire strategy.
In corporate strategy, Johnson and Scholes present a model in which strategic options are
evaluated against three key success criteria:
Suitability (would it work?)
Feasibility (can it be made to work?)
Acceptability (will they work it?)
Suitability
Suitability deals with the overall rationale of the strategy. The key point to consider is whether
the strategy would address the key strategic issues underlined by the organizations strategic position.
Does it make economic sense?
Would the organization obtain economies of scale, economies of scope or experience
economy?
Would it be suitable in terms of environment and capabilities?
Tools that can be used to evaluate suitability include:
Ranking strategic options
Decision trees
What-if analysis
616
Feasibility
Feasibility is concerned with the resources required to implement the strategy are available,
can be developed or obtained. Resources include funding, people, time and information.
Tools that can be used to evaluate feasibility include:
cash flow analysis and forecasting
break-even analysis
resource deployment analysis
Acceptability
Acceptability is concerned with the expectations of the identified stakeholders (mainly
shareholders, employees and customers) with the expected performance outcomes, which can be return,
risk and stakeholder reactions.
Return deals with the benefits expected by the stakeholders (financial and non-financial). For
example, shareholders would expect the increase of their wealth, employees would expect
improvement in their careers and customers would expect better value for money.
Risk deals with the probability and consequences of failure of a strategy (financial and non-
financial).
Stakeholder reactions deal with anticipating the likely reaction of stakeholders. Shareholders
could oppose the issuing of new shares, employees and unions could oppose outsourcing for
fear of losing their jobs, customers could have concerns over a merger with regards to quality
and support.
Tools that can be used to evaluate acceptability include:
what-if analysis
stakeholder mapping
General Approaches
In general terms, there are two main approaches, which are opposite but complement each
other in some ways, to strategic management:
The Industrial Organizational Approach
o based on economic theory deals with issues like competitive rivalry, resource
allocation, economies of scale
o assumptions rationality, self discipline behaviour, profit maximization
The Sociological Approach
o deals primarily with human interactions
o Assumptions bounded rationality, satisfying behaviour, profit sub-optimality. An
example of a company that currently operates this way is Google
Many companies feel that a functional organizational structure is not an efficient way to
organize activities so they have reengineered according to processes or SBUs. A strategic business unit
is a semi-autonomous unit that is usually responsible for its own budgeting, new product decisions,
hiring decisions, and price setting. An additional level of strategy called operational strategy was
encouraged by Peter Drucker in his theory of management by objectives (MBO).
Since the turn of the millennium, some firms have reverted to a simpler strategic structure
driven by advances in information technology. It is felt that knowledge management systems should be
used to share information and create common goals. Strategic divisions are thought to hamper this
process. Such change and implementation are usually built into the strategy through the staging and
pacing facets.
617
CONCLUSION
Strategic planning is a thought process as well as a plan. Part of developing sound strategies is
learning to think strategically, learning how to ask questions and to think broadly and creatively..
Strategic Management yields great rewards when approached and conducted properly. Many factors
contribute to this strategic success. In contrast to other major factors such as external environmental
forces over which an organization has little control, Team Structure and Behavior can become, over
time, almost entirely within the control of the leadership of an organization.
618
NINE BEST PRACTICES FOR EFFECTIVE TALENT MANAGEMENT
K.E.Deepa, M.Com, MBA, Asst Prof, Department of Management Studies,
Guru Nanak Institute, Chennai-42.
INTRODUCTION
Organizations know that they must have the best talent in order to succeed in the
hypercompetitive and increasingly complex global economy. Along with the understanding of the need
to hire, develop, and retain talented people, organizations are aware that they must manage talent as a
critical resource to achieve the best possible results. Few, if any, organizations today have an adequate
supply of talent. Gaps exist at the top of the organization, in the first- to midlevel leadership ranks, and
at the front lines. Talent is an increasingly scarce resource, so it must be managed to the fullest effect.
During the current economic downturn we may experience a short ceasefire in the war for talent, but
were all seeing new pressures put on the talent running our organizations. Are todays leaders able to
do more with less? The A-players can, and there should be a strategic emphasis on keeping those
leaders and developing their successors. Many organizations are reducing their workforces, but lets
be careful not to cut so deep that talent is scarce when the economy rebounds.
The idea of managing talent is not new. Four or five decades ago, it was viewed as a
peripheral responsibility best relegated to the personnel department. Now, talent management is an
organizational function that is taken far more seriously. In The Conference Boards 2007 CEO
Challenge study1, CEOs rankings of the importance of finding qualified managerial talent increased
by 10 percentage points or more when compared to the same research conducted just one year earlier.
Research conducted in 2008 by DDI and the Economist Intelligence Unit (EIU)2 found that 55 percent
ofexecutivelevel respondents said their firms performance was likely or very likely to suffer in the
near future due to insufficient leadership talent. This point of view was reiterated in one-on-one
interviews with top executives, conducted as part of the same research study. This emphasis on talent
management is inevitable given that, on average, companies now spend over one-third of their revenues
on employee wages and benefits. Your organization can create a new product and it is easily copied.
Lower your prices and competitors will follow. Go after a lucrative market and someone is there right
after you, careful to avoid making your initial mistakes. But replicating a high quality, highly engaged
workforce is nearly impossible. The ability to effectively hire, retain, deploy, and engage talentat all
levelsis really the only true competitive advantage an organization possesses.
WHITE PAPER
TALENT MANAGEMENT DEFINED
There is no shortage of definitions for this term, used by corporate leadership the world over.
With a nod to other points of view, DDI defines talent management as a mission critical process that
ensures organizations have the quantity and quality of people in place to meet their current and future
business priorities. The process covers all key aspects of an employees life cycle: selection,
development,
WHATS DRIVING THE CURRENT
EMPHASIS ON TALENT MANAGEMENT?
Organizations have been talking about the connection between great employees and superior
organizational performance for decades. So, why the current emphasis on managing talent? There are
several drivers fueling this emphasis:
619
1. There is a demonstrated relationship between better talent and better business performance.
Increasingly, organizations seek to quantify the return on their investment in talent. The
2. Talent is a rapidly increasing source of value creation.
3. The context in which we do business is more complex and dynamic
4. Boards and financial markets are
5. Employee expectations are also changing.
6. Workforce demographics are evolving. Organizations wage a new war for talent these days.

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EMERGING TRENDS IN

FIRST EDITION Dr.P.V.Prabha

RVS Institute of Management Studies &

No part of this publication should be reproduced, stored in a retrieval system,

First Edition: 2011

Publishers Identifier Number : 909150

I congratulate the conference coordinators and staff members of RVS Institute

The purpose of this conference is to provide a research forum for academics

With the blessings of our beloved chairman Dr.K.V.Kuppusamy, Trustee Tmt.Padmavathi

Our national conference was enriched by the presence of the Chairpersons

CONSUMERS SATISFACTION ON THE SERVICES OF THE

THE IMPACT OF ADVERTISING AND PRICE PROMOTION ON BRAND

A STUDY ON RURAL MARKETING STRATEGY FROM COCO- COLA

CUSTOMER RELATIONSHIP MANAGEMENT - Shanmukavadivoo S.R.M

EMERGING GREEN MARKETING TRENDS

ROLE OF ADVERTISING IN AUTOMOBILE BRAND SELECTION

53 AN ANALYSIS OF FINANCIAL BEHAVIOUR OF INVESTORS IN

79 CONFLICT MANAGEMENT AND ITS IMPACT ON ORGANIZATION

117 A STUDY ON EMPLOYEE ATTRITION RATE SPECIAL REFERENCE TO

126 HR CHALLENGES IN NEW MANAGEMENT PARADIGM: VIRTUAL

OBJECTIVES OF THE STUDY:

SEX GROUP OF THE RESPONDENTS AND LEVEL OF CUSTOMER SATISFACTION

Table 2: Sex group and Level of Consumer Satisfaction

Sex Group Low Medium High Total

Female 31 (16.67%) 78 (41.94%) 77 (41.40%) 186

Male 9 (14.06%) 20 (31.25%) 35 (54.69%) 64

Total 40 98 112 250

Source: Survey data

Figures in the brackets represent the percentage to total

AGE GROUP OF THE RESPONDENTS AND LEVEL OF CUSTOMER SATISFACTION

Table 3: Age group and Level of Consumer Satisfaction

Age Group Low Medium High Total

Young 18 (30.00%) 28 (46.67%) 14 (23.33%) 60

Middle 11 (15.71%) 27 (38.57%) 32 (45.71%) 70

Old 11 (9.17%) 43 (35.83%) 66 (55.00%) 120

Total 40 98 112 250

Source: Survey data

MONTHLY FAMILY INCOME OF THE RESPONDNETS AND LEVEL OF CUSTOMER

Low 15 (26.32%) 30 (52.63%) 12 (21.05%) 57

Medium 11 (10.38%) 37 (34.91%) 58 (54.72%) 106

High 14 (16.09%) 31 (35.63%) 42 (48.28%) 87

Total 40 98 112 250

Source: Survey data

FREQUENCY OF PURCHASE OF GOODS BY THE RESPONDENTS AND LEVEL OF

Table 5: Frequency of Consumption and Level of Consumer Satisfaction

Frequency of Level of Satisfaction

consumption Low Medium High Total

Twice in a month 11 (9.40%) 36 (30.77%) 70 (59.83%) 117

Once in a month 12 (13.95%) 48 (55.81%) 26 (30.23%) 86

Rarely 17 (36.17%) 14 (29.79%) 16 (34.04%) 47

Total 40 98 112 250

Source: Survey data

Table 6: Average value of consumption and Level of Consumer Satisfaction

Less 18 (38.30%) 17 (36.17%) 12 (25.53%) 47

Medium 12 (19.35%) 22 (35.48%) 28 (45.16%) 62

High 10 (7.09%) 59 (41.84%) 72 (51.06%) 141

Total 40 98 112 250

Source: Survey data

PRICE OF GOODS AND LEVEL OF SATISFACTION

The distribution of respondents in accordance with their opinion on price of goods in

Moderate 14 (18.67%) 35 (46.67%) 26 (34.67%) 75

High 16 (34.78%) 17 (36.96%) 13 (28.26%) 46

Total 40 98 112 250