Ijcbs: Contemporary Business Studies

International Journal of Contemporary Business Studies
Vol: 4, No: 3. March, 2013 ISSN 2156-7506
IJCBS
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VOLUME 4 I NUMBER 3 I MARCH, 2013 ISSN 2156-7506

International Journal of Page | 1

Contemporary Business Studies

In this issue:

Impact of Right Issues Announcement on

Shareholders Wealth: Case Study of Pakistani Listed
Companies
Adnan Bashir

Determinants of Banks Performance: Viewing Test by
Cognitive Mapping Technique (Case of BIAT)
Garoui Nassreddine, Sessi Fatma,Jarboui Anis

Employee Induction and Orientation at Public Sector
Organization: A Case from Pakistan
Imran Saeed, Muhammad Arif, Hina Gul, Bushra Ayaz,
Qasim Khan

Performance of Women Cooperative Dairy ‐ A Study
on Mulkanoor Women Cooperative Dairy in Andhra
Pradesh
Dr.Murali Vallapureddy

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Vol: 4, No: 3. March, 2013 ISSN 2156-7506

International journal of Contemporary Business Studies
A journal of Academy of Knowledge Process
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Vol: 4, No: 3. March, 2013 ISSN 2156-7506

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Vol: 4, No: 3. March, 2013 ISSN 2156-7506

VOLUME 4, NUMBER 3
March, 2013
Contents: Page | 5

Shareholders Wealth: Case Study of Pakistani
Listed Companies
Adnan Bashir………………………………………..06
Determinants of Banks Performance: Viewing

Test by Cognitive Mapping Technique (Case of
BIAT)
Garoui Nassreddine, Sessi Fatma,Jarboui Anis.........13
Employee Induction and Orientation at Public

Sector Organization: A Case from Pakistan
Imran Saeed, Muhammad Arif, Hina Gul, Bushra
Ayaz, Qasim Khan…………………………………..32
Performance of Women Cooperative Dairy - A

Study on Mulkanoor Women Cooperative Dairy
in Andhra Pradesh
Dr.Murali Vallapureddy……………………………49

Vol: 4, No: 3. March, 2013 ISSN 2156-7506


Shareholders Wealth: Case Study of Pakistani
Listed Companies Page | 6
Adnan Bashir
Faculty of Management and Administrative Sciences,
University of Gujrat, Pakistan
ABSTRACT
This paper investigates the market reaction to rights issue announcement news by
employing an event study methodology. This study focuses on the performance of thirty
one rights issues in Karachi Stock Exchange (KSE) from 2008 to 2011. The purpose of
this study is to test whether the investor can gain or lose an above normal return by
relying on public information impounded in a rights issue announcement. Using event
study methodology, this study tests where there is excessive abnormal return exists
during event window of announcement. Abnormal returns were calculated by use of the
market model and t-tests are conducted to test the significance. We find evidence of
existence of positive abnormal returns on event date. However this gain in shareholders
wealth is statistically insignificant. The study concludes that the reaction of Karachi
Stock Market is an indication of no rights issue announcement effects i.e. no wealth
maximization of investors.
Key Words: Abnormal Return, Event Study, Right Issue, Significant.

1. INTRODUCTION
Firms need finance to work efficiently and an organization can adopt various methods for the purpose of
financing its business. According to Hovakimian & Tehranian (2004), the acquiring of finance choice
depends on several factors such as the firm characteristics, profitability prospects, time and existing
capital structure. Firms can use equity financing, debt financing or employ a combination of both. Both
entail various costs and benefits. If the firm decides to raise extra equity the stock market can be used as a
source. According to the Kabir & Roosenboom (2003), firms listed on stock exchange generally obtain
external equity finance either from existing shareholders or from new investors. They describe first one as
rights issue and considers this method of raising capital as very popular in international capital markets.
Miglani, (2011) define Right issues as the choice specified by the organization to its existing shareholders
to buy the shares of the company. In a rights issue, corporations willing to acquire additional equity
capital give certain rights to existing shareholders on a pro rata basis. These rights allow them to purchase
a certain number of new shares proportionate to their existing shareholdings at a pre-specified price.
According to the Shahid, Xia, Mahmood, & Usman (2010) new shares offered to existing shareholders at
a specified subscription price that is normally less than what the offering price to the general public will
be. It enables the existing shareholders to preserve their proportionate ownership in the company when
the new issues are made, called preemptive right. Rights issues give the option to the current shareholders
to increase their proportion in the company. The purpose of this study is to see the Right issue may have
any value creation effect for shareholders. The share price may increase in response to this information &
affect the shareholders wealth. The study examines whether the investors in Pakistani capital market can
gain or lose abnormal returns by the announcement of right shares by companies. Although a great deal of
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

work is done in developed countries like USA, UK and even in India. However not a lot is being done in
Pakistan. So this is an effort to bridge the gap in Pakistani context in this important area of finance. In the
next section review of previous literature is given. Method section gives details of sample and
methodology being used. Next is results section which discusses the results of research finding and in the
end conclusion is given.
Page | 7
2. LITERATURE REVIEW
Nelson, (1965) examined 380 rights offerings in the US by using monthly data for the period of 1946-
1957 and found no announcement effects. He concluded that six months prior to the rights offerings
announcement and six months after rights offerings, share holders wealth neither increased or decreased.
Smith & Jr. (1977), analyzed 38 rights offerings and 56 rights with standby underwriting offerings in the
US for the period of 1971-1975. He found no significant abnormal returns for either type during the
month of the rights offerings. Loderer & Zimmermann (1988), investigated 122 rights issues announced
by 56 industrial corporations in Switzerland for the period of 1973-1983. They observed insignificant
average abnormal returns, which was an indication of no announcement effects. Eckbo & Masulis
(1992), used daily data to examine 192 rights issues in the US for the period 1963-1981. Their findings
indicated a decrease of shareholders wealth of around 1%. Tsangarakis, (1996), explored 59 rights
offering in Greece and reported a significant excess return of as much as 4%. However, he was not clear
of the cause of these abnormal returns. Balasingham & Sally (2001), looked at the share price reaction to
announcement of bonus share issues of Australian companies. They analyzed that the magnititude of price
reaction to bonus issue announcements is statistically related to the size of bonus issues & pre-
announcement effect.
Madhuri, Thenmozhi, and Kumar (2003) found negative reaction to the bonus issue announcement. They
were of the opinion that market under reacted after the announcement of bonus issue. Kabir &
Roosenboom (2003), observed that statistically significant negative abnormal return associated with
announcement effect of rights issues in Netherlands. Mishra, (2005), examined the stock price reaction to
information content of bonus issue. The results indicated significant positive abnormal returns for a five-
day period prior to bonus announcement. The results indicated the semi- strong market efficiency of the
Indian stock market. Chen & Chen, (2007), examined 205 right issues in China and found market reacts
negatively around such announcement, but positively during the post-announcement period (in +10 to
+20 days expiration period). Vergos, Konstantinos, Apostolos & John, (2008) investigated the effects of
political, economic, investment & analysts report announcement on share prices of Hellenic
telecommunication organization. The study found that stock prices do not react to public announcement
& continue to increase or decrease until 10 days after the event. Owen & Suchard, (2008), reported
significant abnormal return of -1.83% associated with announcement of right issue of equity in Australia.
Shahid et al, (2010), observed the positive market reaction after the announcement of right issues in
china. Miglani, (2011), observed positive excess returns of 32 right issues from India. They reported a
gain of 1.42% in the shareholders wealth on the day of announcement of right issue. Suresh & Naidu
(2012), explored the wealth effect of Nifty stocks and found no evidence of existence of significant
positive abnormal returns on event day. The event has reported negative ARR of -0.048 and it is
statistically insignificant.
As can be seen from the above literature review that there is no consistency in the research findings on the
right issue announcement effect on shareholders wealth.
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3. METHODOLOGY
Our hypothesis for this study are
H0: AARt = 0
Page | 8
Shares right issue announcement do not create significant positive/ negative abnormal returns for
company shareholders.
H1: AARt ≠ 0
Shares right issue announcement do create significant abnormal returns for company shareholders.
The study explores the wealth effect of thirty one companies during, whose issued right shares during
2008-2011. In order for a company to be included in the sample,
a) Company must be listed on Karachi Stock Exchange (KSE).

b) Shares right issue date and sufficient share price was data
In this study, the standard event study methodology is used to examine the price reaction of
rights issues. According to the Bhagat & Romano, (2002) an event study has four steps
a) defining the event and event window(s)

In the first step deals with the estimation of the unknown parameters of the return model in the period
prior to the event. This subset of the data is called estimation window.
So the time interval in our case is
Time t =0 is the event date or announcement date in calendar time event window = [-10, 10]
estimation window is [-211,-11] days.
b) measuring the stock’s return during the event period

c) estimating the expected return of the stock during this event period in the absence of the
announcement
To test for the existence of abnormal returns, a benchmark for normal returns is required. The
model will use stock market index i.e. KSE 100 index return as proxy for independent variable to
evaluate changes in dependent variable i.e. stock prices of company.
E(Rit) = α + βRmt +eit ----------------------------------------------------(I)
where,
α = Ordinary least squares estimate of the intercept of the market model regression.
β = Ordinary least squares estimate of the coefficient in the market model regression.
Rit = Actual return of stock i at time t.
Rmt = Actual return of market at time t
eit is a statistical error term, Σ eit=0.
d) computing the abnormal return (actual return minus expected return) and measuring its statistical
and economic significance
In the final step abnormal return is calculated by subtracting actual return. This is measured by the
following equation:
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ARit = Rit – E(Rit) ---------------------------------------------------(II)
where, ARit = Abnormal return for a stock “i” on day “t”.

Rit = Actual return of stock “i” at time “t”.
E(Rit) = Expected return on stock “i” at time “t”.
Page | 9
The estimator of the average abnormal return during day t,AAR t across all securities for any individual
time period t in the estimation period is obtained by aggregating all abnormal returns of firms (with return
data) on day t divided by N (the number of firms with
return data on day t): is defined as:
AARt= 1/N ∑ARit ---------------------------------------------------(III)
The estimates of the average abnormal returns are summed across days to measure the cumulative
average abnormal returns, CAAR(T1,T2 ), where T 1 and T 2 are the actual days of the event period. That
is, the estimator is given by:
CAAR(T1,T2 ) = ∑T2T1 AARt---------------------------------------------------(IV)
Finally, to test the significance of if average abnormal return AARt in the event period, we used the t-
statistic the α= .05 level.
t statistics is obtained by dividing AARt by the estimated standard deviation.
i.e. t=AARt /SE---------------------------------------------------(V)
4.RESULTS
Figure 1 shows the results of average abnormal return AAR and cumulative average abnormal return
CAAR for the thirty one companies during the event window. The table 1 shows that AAR for the 20
days around the announcement date there is no consistent pattern of abnormal returns of the companies
engaging in right issue. Five days before the announcement date share holders wealth increased due to
increase in share price, however for five consecutive days after the announcement it suffered loss. By
glancing at this figure, it is very much clear that although companies returns changed during the event
window, however that alteration be increase or decrease was very small. For CAAR This table has a
definite pattern. Here impact of right announcement on shareholders wealth is negative. Shareholders lost
their wealth on all 20 days around the right issue announcement date. Although amount of loss fluctuated
during event window, however it remained as loss and not a single day during the event window
shareholders enjoyed the gain.
Figure 1
AAR and CAAR during event window
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Table 1 presents the average abnormal return during the event window. Here, on event day shareholders
enjoyed very modest gain of (0.41%). The maximum gain in shareholders wealth was (1.62%) on tenth
day after announcement and that was not significant as well as calculated t value (.482) is less than
tabulated value 1.96. The only significant loss (-1.77%) was on eight day after announcement. There was
Page | 10
increase in abnormal returns from fourth day before the announcement date to announcement date but that
trend of increase in shareholders return did not continue after the announcement date. Infect there was
loss on returns to stockholders until five days after the announcement date.
Table 1: AAR during event window
Day AAR T Statistics

-10 -0.86% -1.008*
-9 0.70% 0.816*
-8 -1.77% -2.071***
-7 -0.77% -0.901*
-6 0.00% 3.19E-05*
-5 -0.19% -0.225*
-4 0.31% 0.358*
-3 0.25% 0.288*
-2 0.78% 0.913*
-1 0.01% 0.013*
0 0.41% 0.482*
1 -0.79% -0.923*
2 -0.68% -0.800*
3 -1.33% -1.554*
4 -0.76% -0.895*
5 -1.51% -1.770*
6 0.21% 0.250*
7 -1.60% -1.879*
8 -1.05% -1.225*
9 -1.10% -1.284*
10 1.62% 1.902**
***, **, * Denote significance at the 1%,5% and 10% levels, respectively
Table 2 presents the cumulative average abnormal return during the event window. Here on event date
shareholders lost wealth by (-1.14%). One important observation regarding the CAAR was that after the
announcement date loss kept on increasing. The biggest loss shareholders suffered in their wealth was on
ninth day after the announcement date and that was (-9.75%).
We are accepting our null hypothesis for AAR i.e. shares right issue announcement do not create
significant positive/ negative abnormal returns for company shareholders, and companies involve in rights
issue at Karachi Stock Market (KSE) exhibits semi strong form behavior by relying on public information
w.r.t rights issue announcement. CAAR at event date is not significant at 5% as calculated t value
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1.33486 < 1.96 (critical value). However, in case of CAAR our null hypothesis is not accepted at most of
days as calculated t value is greater than tabulated value. The reason for this could be CAAR is sum of
previous AARs and since after the event it shows loss so that value of loss enhances in case of CAAR,
hence shares right issue announcement do create significant cumulative abnormal returns for company
shareholders.
Page | 11
Table 2 CAAR during event window
Day CAAR T Statistics

-10 -0.86% -1.008*
-9 -0.16% -0.192*
-8 -1.93% -2.264***
-7 -2.70% -3.165
-6 -2.70% -3.16
-5 -2.89% -3.391
-4 -2.59% -3.032
-3 -2.34% -2.744
-2 -1.56% -1.831**
-1 -1.55% -1.817**
0 -1.14% -1.334*
1 -1.93% -2.258***
2 -2.61% -3.059
3 -3.94% -4.613
4 -4.70% -5.509
5 -6.21% -7.279
6 -6.00% -7.029
7 -7.60% -8.908
8 -8.65% -10.1338
9 -9.75% -11.418
10 -8.12% -9.516
***, **, * Denote significance at the 1%, 5% and 10% levels, respectively
5. CONCLUSION
This paper has examined the impact of rights issue announcement news on shareholders wealth. By
using event study methodology, this study tests where there is excessive abnormal return exists during
event window of announcement. This research finds the evidence of existence of negligible positive
abnormal returns of 0.42% on event date, however this increase in wealth is statistically insignificant.
One reason might be that news about the right issue of company’s was circulating in the market well
before the official declaration by the company to stock exchange. Moreover compiling minutes of
approval of Board of Directors (BOD) in annual general meeting or extraordinary general meeting,
regarding shares issues and sending this information to Securities and Exchange Commission SECP gave
investors enough time to respond. By virtue of this investors and analysts had already adjusted this
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information in their valuation of security prices, so news of issuing new shares did not come as surprise
to investors. Hence shareholders wealth did not change a lot during event window.
6. REFERENCES
Page | 12
Balasingham, B., & Sally, T. (2001). Bonus share issues & announcement effect: Australian evidence.
Australian Economic Paper, 44(3), 248-268.
Bhagat, S. & Romano, R. (2002): Event Studies and the Law: Part I: Technique and Corporate Litigation,
American Law and Economics Review, 4, 141-168
Chen, C., Chen, X. (2007). The information content of rights offerings in China. Research in
International Business and Finance 21, 414–427.
Eckbo, B. & Masulis, W., (1992) Adverse Selection and the Rights Offer Paradox, Journal of Financial
Economics, 32, 293-332.
Hovakimian, A. G. H, & Tehranian, H. (2004). Determinants of target capital structure: The case of dual
debt and equity issues. Journal of Financial Economics, 71, 517-40.
Kabir, R., & Peter, R. (2002), Can the stock market anticipate future operating performance? Evidence
from equity rights issues Available at SSRN: http://ssrn.com/abstract =371049 (Accessed in
November 2012)
Loderer, C. & Zimmermann,H. (1988) Stock Offerings in a different institutional setting: The swiss
case. Journal of Banking and Finance,353-378.
Madhuri, M., Thenmozhi, M., & Kumar G. A. (2003). Stock market reaction & liquidity changes around
bonus issue announcement: Evidence from India: 10th capital markets conference. Indian
Institute of Capital Markets Paper, 1-12.
Miglani, P. (2011), An empirical analysis of impact of right issues in the Indian listed companies.
Journal of Arts, Science and Commerce, 2, 169-176
Mishra, A.K. (2005) An empirical analysis of market reaction around the rights issue in India. The
ICFAI Journal of Applied Finance, 21-37.
Nelson, J.R. (1965). Price Effects in Rights Offerings. Journal of Finance, 650-657.
Owen S. A., & Suchard. J. (2008). The pricing and impact of rights issues in Australia. Applied
Financial Economics, 18(14), 1147-1160
Rezaul, K. & Peter, R. (2003). Can the stock market anticipate future operating performance? Evidence
from equity rights issues. Journal of Corporate Finance, 9(1), 93-113.
Shahid,H., Xia, X., Mahmood, F., & Usman, M. (2010). Announcement effects of Seasoned Equity
Offering in China. International Journal of Economics and Finance, 2(3), 163-169.
Smith, C.W., & Jr. (1977). Alternative methods for raising capital: Rights versus underwritten offerings.
Journal of Financial Economics, 273-307.
Suresh & Naidu. (2012). An empirical study on announcement effect of right issue on share price
volatility and liquidity and its impact on market wealth creation of informed investors in
Bangalore with special reference to CNX nifty stocks of NSE. 2 (7), Retrieved from,
http://zenithresearch.org.in/ on December 2012.
Tsangarakis, N.(1996). Equity right issues: Signaling Vs issue price irrelevance hypothesis. European
Financial Management , 2, 299-310.
Vergos, P., Konstantinos, G., Apostolos, C. & John, M. (2008). The impact of publicity announcement
on share prices: An empirical study. ICFAI Journal of Management Research,7, 35-55.
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Determinants of Banks Performance: Viewing

Test by Cognitive Mapping Technique
(Case of BIAT) Page | 13
Garoui Nassreddine
Faculty of Economics and Management (FSEG)
Higher Institute of Business Administration (ISAAS) Sfax-Tunisia.
Sessi Fatma
Student in Accounting and Financial Techniques
Higher Institute of Business Administration (ISAAS) Sfax-Tunisia.
Jarboui Anis
Faculty of Economics and Management (FSEG)
Higher Institute of Business Administration (ISAAS) Sfax-Tunisia,
ABSTRACT
Determinants of bank performance can be split between those that are internal and those
that are external. Internal determinants are also sometimes called microeconomic
determinants or inherent performance, while external determinants are variables that
reflect economic and legal environment in which the bank operates. This paper
investigates the determinants of banks performance in the Tunisian banking .In attempts
to identify the determinants in order to provide practical guides for improved profitability
performance. In view of our results, size, control and credit quality are the important
variables can determine the performance of bank.
Key words: bank performance, internal determinants, external determinants, cognitive

mapping.
1. INTRODUCTION
The structure of the banking system has undergone many changes since the eighties. These changes are
the result of adaptation to the new order of the bank’s financial markets marked by an opening of markets
has resulted in increased competition. As part of such restructuring banking systems, understand "the
banking performance" and "its determinants" issues becomes important. The literature review showed that
"the banking performance" is represented mainly by quantitative or quantifiable such as financial
indicators (ROA, ROE, etc.). The same situation is to be found when studying "The determinants of bank
performance." Indeed, the literature holds primarily internal or external variables quantitative or
quantifiable to explain bank performance. Although these account for bank performance, we believe they
are incomplete and therefore insufficient. For our part, we assume that the performance of a bank, as a
multi-product company (or multi), which operates in an uncertain and volatile (Naylor, 1995: 58), is
probably affected not only by internal variables of a quantitative nature (eg financial ratios) but also by
the internal variables of a qualitative nature (eg: variables related activities, managerial preferences etc.)..
This position has two consequences. Firstly, to address the issue of the performance of a bank, it is
necessary to refer to a global model that integrates financial, organizational and environmental. In
addition, it is necessary that this model takes into account the interactions between each of these aspects
since bank must be designed as a system with functions or multiple determinants that interact among
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

themselves and with the environment (Schein 1971, p: 94). In this context, the objective of this study is to
propose a system model that is able to integrate all of the interrelationships or links which connect the
banking performance and its determinants. To achieve our goal, we built the model "OPERA-BANK".
This model is a transposition of "OPERA" is a generic model intended for the diagnosis of a non-financial
company by Capet, Causse and Meunier (1983). Within the OPERA model, the model-BANK OPERA
creates and uses its own dimensions and variables taking into account the special nature of banks. First we
Page | 14
will discuss the characteristics of model dimensions BANK-OPERA before exploring the links between
these dimensions.
Bank performance is usually measured by return on assets (ROA), return on equity (ROE) or the net
interest margin (NIM) and is a function of internal and external determinants. Internal determinants are
also sometimes called microeconomic determinants or inherent performance, while external determinants
are variables that reflect economic and legal environment in which the bank operates. Many studies have
attempted to explain the contribution of a particular variable on the performance of banks. It should be
noted that very often, the authors found different results even contradictory. This is mainly due to the
different data they use, which covers different areas and periods. Thus, some authors have studied the
performance data from several countries, such Molyneux et al. (1992), Demirgüç-Kunt et al. (1999),
Abreu et al. (2002), Goddard et al. (2004) and Athanasoglou et al. (2006). Others, such as Berger et al.
(1987) (banking system in the United States), Barajas (1999) (Colombia), and Mamatzakis Remoundos
(2003) (Greece) and García-Herrero et al. (2009) (China) are interested in specific countries.
2.1 Determinants of performance
2.1.1 The internal determinants
2.1.1.1 Size
As with many variables, the impact of size on bank performance is hotly debated among researchers. It is
possible to divide them into three groups: those who believe that size has a positive impact on
performance, those who find a negative impact, and those for whom the impact is not significant. Start
with the studies in the first group, who find a positive impact on performance. It includes Short (1979),
Smirlock (1985), Bikker et al. (2002) and Pasiouras et al. (2007). They advance several arguments to
justify their results: A large reduces costs due to economies of scale that this entails, large banks can also
raise capital at a lower cost.
In the second group, Stiroh et al. (2006) show the negative effects of the size and emphasize that the more
a bank is, the more difficult it is to manage. In addition, the authors point out that the size may result from
aggressive growth strategy, obtained at the expense of margins and performance. In the same vein,
Kasman (2010) finds a statistically significant and negative impact on the size of the net interest margin
(net interest margin) watching a panel of 431 banks in 39 countries. De Jonghe (2010) concludes that
small banks are better able to withstand difficult economic conditions, while Barros et al. (2007) argue
that small banks are more likely to get good performance and less chances of getting bad performance.
Conversely, large banks are less likely to obtain good performance and a greater chance of getting bad
results. Many other authors, such as Berger et al. (1987) respond to the argument of economies of scale
and argue that some costs can be reduced simply by increasing the size.
Finally, the third groups are not statistically significant impact of size on the performance of banks. This
is Goddard et al. (2004), Micco et al. (2007) and Athanasoglou et al. (2008).
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

2.1.1.2 Capitalization
Capitalization is usually measured by the ratio of equity to assets ratio (CAR capital to asset ratio). Rapid
approach to the question might suggest a higher CAR ratio reduces the ROE due to two mechanisms: A
high ratio indicates a lower risk, and the theory of markets to balance advocating a strong relationship at
risk and profitability would lead us to infer a lower profitability, An increase in this ratio may indicate
that the share of the debt decreases and thus implies a lower earnings from the tax exemption of the debt
Page | 15
burden.
However, all the authors who have studied the issue (Bourke (1989), Berger (1995),try to summarize here
the main explanations given by the authors to justify their results:
- A high level of capital reduces the risk (bankruptcy) incurred by banks. They can therefore afford to
maintain the same level of risk of investing in riskier assets whose expected return is of course higher.
This results in better performance.
- Have a high level of equity is a very positive signal sent to the market on the solvency of the bank and
its very low credit risk. Accordingly, such banks are able to reduce their financing costs, for example by
paying low interest rates on their debt.
- In addition to the cost of debt is lower, a strongly capitalized bank, compared to a weakly capitalized
bank, does not need to borrow as much to finance a given level of assets.
- Finally, taking the signal theory, the use of equity (more expensive than debt) to finance a project tells
the market that the bank is very confident in its projects and their profitability will be up to the
expectations.
2.1.1.3 Liquidity
Very often, liquidity is measured by the ratio of loans to assets. The higher the ratio, the lower the bank
has liquidity. In fact, the loan agreements have various maturities, and thus, in case of urgent need of
capital, the bank cannot rely on these loans, since they will only be reimbursed later.
The vast majority of authors found a positive relationship between this ratio and performance, and
therefore a negative relationship between liquidity and performance. This result is surprising, especially
in these times of crisis, where we could see how the banks were seeking liquidity. Authors obtain results
more consistent with what one might think, as Berger and Bouwman (2009), which explains in detail the
positive impact of liquidity on the value of banks.
Certainly, they have not studied the impact on performance, which may explain these results as opposed
to the existing literature, but their reasoning should be clarified here. These authors argue that a bank with
a high ratio of loans to assets may be less well equipped in case of occurrence of unanticipated crisis
events. In addition, the bank is more likely to experience significant losses if a sale urgent (and therefore
sold off) of assets necessary to meet liquidity needs. The current financial crisis, which is particularly a
liquidity crisis, is an example oh speaking that goes in the direction of the two authors.
As mentioned, other authors who have studied the impact on the performance of banks (not value) of
assets ratio loans discover a positive relationship.
Authors such Miller (1997), Abreu and Mendes (2002), or Naceur et al (2010), in fact interpret the ratio
of loans to assets as a measure of credit risk: the higher the ratio, the higher the number of loans granted
by the bank is high, and therefore the risk of default (ie credit risk) increases. To pay the higher credit
risk, banks will increase their margins on interest on loans, which increases the NIM and performance.
Conclude this section on liquidity with a remark on the choice of the ratio, as a proxy for liquidity. We
discussed this ratio can equally well be interpreted as a measure of liquidity risk than credit risk. In this, it
is perhaps not the best to characterize liquidity. Authors have used a different ratio than the cash plus
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bank deposits, investments in more liquid assets to total assets. Bourke (1989) discovers a positive
relationship between the liquidity ratio and ROE, which contradicts both the arguments and findings
described above, the following argument: the liquidity reserves, especially if they are imposed by law, are
a burden for banks. Molyneux and Thornton (1992), seeking work Bourke verify, analyze data and find
other a negative impact, but statistically insignificant.
2.1.1.4 Credit quality Page | 16

Credit quality, fairly close to the concept of credit risk, is usually measured by two ratios: the ratio of
provisions for credit losses to total loans and the ratio of provisions for doubtful debts on total loans. (To
be completely accurate, note that these ratios actually measure the quality of non-credit).
As can be expected, Miller (1997), Athanasoglou et al. (2008) and Liu H. et al. (2010) find that a
deterioration of the credit quality reduces the ROA and ROE. The impact on the NIM seems positive as
banks seek to increase their margins to compensate the one hand the risk of default, and other additional
costs necessary to monitor these credits. The study of Dietrich et al. (2011) on the performance of banks
in Switzerland is particularly interesting because the authors study the impact of many variables on the
performance of both pre-crisis and during the crisis. Sometimes they notice changes in these impacts with
the arrival of the crisis, and this is especially the case for credit quality. Thus, pre-crisis credit quality had
no statistically significant impact on the performance of banks, perhaps authors suggest, because Swiss
banks at that time had very few provisions for losses or bad debts. The arrival of the crisis changed the
situation and significantly increased the number of such provisions recorded by Swiss banks. The authors
note now a strong positive impact on the credit quality of their performance.
2.1.1.5 Efficiency
The efficiency is usually measured by the ratio of costs or result by the ratio of overheads to total assets.
Firstly, we note with Altunbas et al. (2001) and Maudos et al. (2002) that the level of effectiveness varies
considerably in Europe, between different banks and also between different banking sectors. The authors
have studied the impact of effectiveness generally agree to say that it improves the performance of banks.
Thus, Athanasoglou et al. (2008) found a positive relationship by studying Greek banks from 1985 to
2001 and explained that a bank is better able to more effectively use its resources better and reduce costs,
which results in a better performance. This reasoning is echoed by Liu et al. (2010), in their analysis of
Japanese banks from 2000 to 2007 regardless of the variable used to measure performance (ROA, ROE
and NIM), and regardless of the type of control that is exerted on the bank (state or private ), the ratio of
costs to income has a negative impact on performance.
Kunt and Huizinga Demirgüç (1999) have also sought to quantify the effectiveness and found that on
average only 17% of overhead costs were incurred by investors who deposited money in the bank and
other lenders of the bank, and the remainder reduced performance. The study by Berger and Humphrey
(1997) allows us to refine our understanding of the impact and effectiveness. Performing a regression
between efficiency and size, the authors find that large banks are more efficient than smaller ones.
2.1.1.6 Control
Most authors show that public banks / nationalized are less efficient than private banks. In is true for
Iannota et al. (2007), Barth et al. (2004) and Million Cornett (2010). These authors show that the
nationalized banks:
- Grant riskier loans, which means a higher credit risk and poor asset quality,
- Know solvency ratios worse than private banks,
- Have a ratio of "core capital" pus low.
Million Cornet et al. (2010) point out that the difference in performance between private and public banks
is even more pronounced in countries where power is heavily involved in the banking system and where
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political corruption exists. The authors explain these results by the generally high inefficiency and
nationalized banks, which may seem surprising, little attention to their social objectives. They also
highlight the potential conflicts of interest which may lead politicians to prioritize their political interests
before the public interest.
Some authors however nuanced the relationship between control and performance. Thus, Micco et al.
(2007) do find that the type of control over the bank has an impact on performance. But for them, this Page | 17
relationship is verified especially in developing countries where nationalized banks have low
performance, low margins and high overhead. In developed countries, this relationship is much less
marked. Wanzenried and Dietrich (2011) have studied the case of Switzerland and confirm that the
nationalized banks are less efficient than private banks ... but not in a crisis! The current financial crisis
has reversed this trend, nationalized banks are then considered safer and better managed than private
institutions.
Note, finally, that the two studies are not statistically significant impact on the type of control over the
performance. Those of Athanasoglou et al. (2008) and Goddard et al. (2004). Molyneux et al. (1992),
studying the banks of eighteen European countries from 1986 to 1989 are the only authors find that the
nationalized banks are more efficient than private banks. This may be explained by the period, the 1980s.
2.1.1.7 Degree of diversification

The degree of diversification is usually measured by the ratio of non-interest income related to loans on
operating income. Only the study by Dietrich and Wanzenried (2011) finds a positive effect of
diversification on performance.
All other studies on the subject lead to the opposite result and suggest that this movement towards non-
interest results did not improve the risk-return torque. Thus, DemirgüçKunt and Huizinga (1999) show
that banks with a large share of their assets do not earn interest are less profitable than others. They link
this to the positive impact already commented, the ratio between loans and asset performance. Barros et
al. (2007) also find that more diversified banks are less likely to be successful and more likely to provide
a poor performance. De Jonghe (2010) finds that the diversification within an institution does not improve
the stability of the banking system, which may explain why financial conglomerates cotent with a
discount.
2.1.1.8 Amount of bank deposits

It is not easy to estimate a priori the impact of the level of bank deposits on bank performance. Indeed,
two arguments can be opposed on the one hand, a high level of deposits can increase performance,
because they are more stable funding and less expensive than borrowed funds, but on the other hand, such
deposits require large teams and specialist departments to manage, causing many expenses. It seems that
only-Kunt and Huizinga Demirgüç (1999) were interested in this issue. Their results support the second
argument that the high costs generated by these deposits lead to weigh negatively on the performance of
banks.
2.1.1.9 Governance
These are again Beltratti and Stulz (2009) that included governance in their lists of independent variables.
They used to do model CGQ (Corporate Governance Quotient), which, on the basis of many criteria such
as the powers and composition of the board of directors, remuneration of directors, or the presence of an
audit committee independent, emits a note. The media and commentators have talked a lot about
compensation, modes of governance, and how deficiencies in these areas have contributed to the severity
of the crisis we are experiencing.
The authors, however, based on global data banks whose assets exceed 10 billion euros in 2006, found no
evidence confirming the widespread belief: their results do not indicate that banks with higher CGQ
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rating performed better during the crisis. In addition, we regularly hear the argument that executive
compensation and traders should be aligned with the results of the company and its stock price, including
the introduction in the remuneration package of stock options provided a period long enough intangible
(vesting period). This argument rests on the idea that if bankers actually acted in the interest of
shareholders, they would not take steps to improve the share price in the short term, to worry about long-
term performance.
Page | 18
This argument holds and seems quite defensible. However, past through the prism of a quantitative
analysis of the current crisis, it becomes much less relevant: Beltratti and Stulz (2009) show that it is the
banks that the board was the closest shareholders (many CA shareholders, bank policy with the wishes of
shareholders ...) who have experienced the worst performance during the crisis! This raises many
questions about how to avoid a future crisis. If the remuneration policy and compliance with the wishes of
shareholders cannot, on the contrary, the occurrence of crises, what other levers available to banks? This
brief will highlight some specific variables that may explain the differences in performance of retail banks
in France during the crisis. Causing the same problems the same remedies, we expect that these variables
will also be identified relevant to better cope with future crises.
2.1.1.10 The market share

The impact of market share has mainly been studied by H. Liu et al. (2010). These authors show that, at
least in Japan, a negative relationship between market share and performance (measured by NIM), and
regardless of the type of bank. Only the performance of banks and type City Trust are indifferent to this
variable. How to explain this relationship?
On the one hand, by analyzing the behavior of banks with low market share. Banks seek to grow and gain
market share. To do this, one of the few resources at their disposal is the granting of loans to risky people.
These risky loans that refuse to grant the big banks, allowing banks to smaller market share to grow.
These loans are riskier, they will match the higher interest rates, which will increase their performance
and their NIM. On the other hand, we can with Martinez Peria and Mody, (2004) we adopt the point of
view of banks with a significant market share. They can use their market share and size to eliminate
existing or potential competitors by reducing their margins on interest rates. This result in the short term,
reduce the NIM and the performance of these banks.
2.1.2 The external determinants
External determinants of banks, such as the economic environment, inflation, or interest rates also affect
performance. This dissertation focuses on internal determinants of French banks, which may explain the
differences in performance during the crisis. It remains worth stopping for a moment on these external
determinants to draw a picture as complete as possible of the literature on the determinants of bank
performance.
2.1.2.1 The inflation

The first author to address the issue of inflation was Revel (1979). He showed that the impact on
performance is dependent on the rate of growth in operating expenses: if these expenses are rising faster
than inflation, there is a negative impact on performance. If, however, the growth rate is lower, there is a
positive impact. Elaborating the model developed by Revel (1979), Perry (1992) refines the analysis by
introducing the notion of anticipation: if inflation is fully anticipated, then it can be passed on to prices
ex-ante, and this improves the Performance. If, however, it is not anticipated, the costs will rise faster than
prices and the impact on performance is negative.
Many other authors have focused on inflation, and found a positive and statistically significant. This is
Bourke (1989), Molyneux and Thornton (1992), Demirgüç-Kunt and Huizinga (1999), Athanasoglou et
al. (2006, 2008), and Pasiouoras Kosmidou (2007).
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Both studies, however, lead to the opposite result: those Afanasieff et al. (2002) and Ben Naceur and
Kandil (2009). They conclude that inflation has a negative impact on interest margins. Ben Naceur Kandil
and offer the following explanation: the main activity of banks (mostly commercial) is lending. The
market is therefore based on an offer of credit (provided by banks) and demand (the individuals and
companies). Inflation reduces the demand for credit because it increases uncertainty about the future.
However, it has been proven that individuals and businesses if their level of risk aversion varies widely
Page | 19
showers are uncertainty (ambiguity-aversion). This drop in demand would lead to a decline in lending and
therefore a decrease in performance.
2.1.2.2 GDP growth

It is easy to assume that the growth in economic activity, measured by GDP, has a positive impact on the
performance of banks: a period of high growth leads to higher investment and consumption, which
increased the credit, and hence increase the performance of banks.
This is actually the result reached by the majority of authors who have studied this relationship, namely
Goddard et al. (2004), Demirgüç-Kunt and Huizinga (1998), Arpa et al. (2001), Bikker and Hu (2002)
and Schwaiger and Liebig (2008). Yet all authors fail to this conclusion. Thus, Claeys and Vennet (2008)
who study the situation in Europe, find that it is true that in Western Europe, but the impact is zero on the
banks of Eastern Europe. In addition, Bernake and Gertler (1989) and Demirgüç-Kunt et al. (2004) even
find an inverse relationship between GDP growth and performance of banks. One explanation they
advance is as follows: in periods of recession, the risk of borrower default increases. To compensate for
this increased risk, banks increase interest rates on loans, which improves their performance.
2.1.2.3 The tax

Few authors have attempted to measure the impact of taxation on the performance of banks, and it is
certainly something that could be the subject of further research. The result which is expected, namely a
negative impact, is what are Demirgüç-Kunt and Huizinga (1999). We can easily understand why: the tax
is deducted from the result; it automatically assigns the ROA and ROE. However, a study by Albertazzi
and Gambacorta (2009) finds a very low impact of taxation on performance. Indeed, the authors consider
that it is very easy for banks to pass their taxes on other actors (depositors, borrowers, customers paying
commissions ...).
2.1.2.4 Market concentration

Without going into details, note that both theories face in terms of impact of the concentration on the
performance of banks. The first, called "Structure conduite performance" (SCP) states that an increase in
market share and market concentration leads to monopoly powers. The second, "Efficient-structure" (ES)
refutes this idea. The results of Bourke (1989) and Molyneux and Thornton (1992) show that bank
concentration ratio has a positive and statistically significant impact on the performance of banks. This
bears out the theory SCP.
But other studies, such as those of Berger (1995), Demirgüç-Kunt and Huizinga (1999), and Mamatzakis
Remoundos (2003) and Staikouras and Wood (2004) lead to precisely the opposite result, which would
tend to support the theory ES.
2.1.2.5 The maturity of the banking sector

-Kunt and Huizinga Demirgüç are few authors have analyzed the relationship between bank performance
and maturity of the banking system as a whole, as measured by its size or level of development. In their
1999 study, the authors conclude that there is a negative relationship between the size of the banking
sector and the banks' performance. They explain that most banking market, the greater the number of
players is important and the competition is fierce. This gradually reduces the maximum performance of
each player.
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They confirm this result in a second study published in 2001. The authors analyze, on the basis of data
covering a large number of countries over the period 1990-1997, the relationship between bank
performance and financial market development, the level of complexity of its structure. They show that
there are statistically significant: a developed banking system reduced performance due to greater
competition.
2.1.2.6 The stock market Page | 20

That Naceur et al. (2010) analyzed is not so much the relation "immediate" between the market price of
the banks and their performance measured by ROE, ROA and NIM. They further considered the level of
stock market development. They find that banks that operate in areas where the stock market is well
developed experiencing higher profits that banks operating in areas where the award is undeveloped.
2.1.2.7 The choice of a country

Numerous studies have confirmed the existence of highly heterogeneous performance between banks in
different countries. Studies by La Porta (1997), Stulz and Williamson (2003) and Beck et al. (2003) and
provide evidence suggesting that legal systems, accounting rules, cultures and religions explain
differences in cross-border economic growth and business development. In their analysis of European
banks over the period 1993-2001, Barros et al. (2007) lead to the same conclusions. They also bring a
new element if performance differences between such and such a country such period, do not necessarily
mean that the choice of a country brings in itself an advantage in terms of performance over its
competitors.
3. RESEARCH METHODOLOGY
3.1 Methodological tools
We chose to approach the bank performance by using a common technique in cognitive approaches, that
of cognitive mapping. This is a graphical modeling technique of cognition used in numerous studies in
management sciences. The cognitive map is not the only tool for analyzing the managerial cognition, but
it is the most popular for the presentation of cognitive structures.
Cognitive mapping is a technique now well established captures the minds of the actors about a problem
or situation. A cognitive map allows you to view certain ideas and beliefs of an individual on a complex
area such as corporate governance (Garoui Nassreddine and Jarboui Anis, 2012). A cognitive map is
usually defined as the graphical representation of a person's beliefs about a particular field. A map is
not a scientific model based on an objective reality, but a representation of a part of the world as seen
by an individual.
3.2 Description of the empirical investigation
To meet the research objectives mentioned above, a survey was conducted among players in the bank
(BIAT) in Tunisia. We have chosen as exploratory approach using a case study. The data is the BIAT
bank. The decision to base our study on a case of bank is based on the assumption that a variety
of issues will be addressed as well. The output is a cognitive map for actors reflecting their perceptions of
the determinants of bank performance. The method used to create cognitive maps is the questionnaire.
3.3 Presentation of the questionnaire
The questionnaire is divided into two parts: the first identifies the company and the second deals
with bank performance. For the second part, relating to determinants of bank performance, we interview
actors from the bank on determinants of performance by providing a list of concepts (determinants of
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bank performance) with systematic exploration grids and matrices cross. Systematic exploration of the
grid is a technique for collecting materials.
Each actor is encouraged to explore their own ideas or cognitive representations in relation to its strategic
vision. The subject is asked to identify important factors that he said will have an impact on the key
concept related to bank performance.
Page | 21
Figure1: Grid systematic exploration
Regarding the cross-matrix, it is also a technique of data collection and the basis for the construction of
the cognitive map. The matrix is presented in the form of a table with n rows and n columns. Box of
index (i, j) indicates the relationship between concept i and concept j.
The actors manipulate the key concepts and assign pairs of concepts depending on the nature and
degree of proximity sensed between these concepts.
Table1: Adjacency matrix
Concept1 Concep2 …… Concept n
Concept1 1
Concept2 L21 1 L2n
…… 1
Concept n Ln1 Ln2 1
3.4 Proposal for modeling cognitive maps
When it is difficult to identify the goals, an integrated approach of performance provides a holistic
view in which the performance is analyzed by the processes that lead, through the performances of the
actors. These representation processes are two problems of implementation: the sharing of
representations of actors and the identification of dominant representations in the organization in order
to act upon them. The construction of this representation necessarily requires a model that
allows understanding to act is "an action of intentional design and construction, for composition of
symbols, patterns that would make a complex phenomenon intelligible perceived.
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In this context, the use of cognitive maps seems relevant, because they can take into account the
complexity and comprehensiveness of the system in which [the behavior] is embedded, while
maintaining access to the analysis" (Komocar, 1994). The value of the tool is instrumental (Audet, 1994),
it allows both improving their actions and making sense.
Cognitive mapping is used as a tool for representation of an idiosyncratic schema (Cossette, 1994), a Page | 22
pattern is "a cognitive structure that guides the cutting of reality, the interpretation of
events, and action individuals ", pattern unique to each individual, causing it to have its own behavior.
3.5 The construction of cognitive maps
We will see at first step that allowed the construction of concepts, methodological approach that
we discuss. Then we will examine how the cards were dealt.
3.6 Concepts
We addressed this issue by the representations constructed by players using the method of cognitive
maps, a method that can be applied to poorly structured situations. An analysis based on cognitive maps
can understand this process of structuring, as this model is to build or rebuild the mental simultaneously
modeling. This construction takes the form of a structure, carrier for clarification (Garoui Nassreddine
and Jarboui Anis (2012)). It helps to identify ways to implement to achieve a given goal, the same way it
helps to identify the goals justifying the use of such means. Finally, it facilitates communication and
negotiation.
There are two major trends in the construction method of the cards: the determination of the concepts can
be ex ante, or subsequent interviews with respondents for whom the cards are built. Komocar (1994) links
the question of determining nodes - or concepts - and links to two paradigms. In the phenomenological
paradigm, the universe is largely unknown. The emphasis is on describing the world from the experiences
of people who experience it.
Nodes and links are determined directly by the participants that advocate Cossette and Audet (1994), not
to deprive the subject of representations: the questions should be invitations for the respondent verbalizes
his thoughts on what he considers important subject of research (Cossette, 1994). In addition, the
researcher cannot force the subject to consider every possible link because the links must be made
spontaneously or in response to open questions, so that the subject constructs its reality (Cossette and
Audet, 1994). In the normative paradigm, the universe is more or less determined. The focus is on
operational definitions and research plans reproducible. Observers, different participants, may determine
the relationship between variables and nodes that can be.
We selected 17 concepts for the determinants of bank performance to their ability to describe the field of
performance. We were guided in this by a literature review and an exploratory study based on a
questionnaire made up of grids of systematic exploration and cross-matrices. The concepts presented in
the table below.
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Table2:
Key concepts for behavioral approach
1. Size
2. Capitalization
3. Liquidity
4. Credit quality
Page | 23
5. Efficiency
6. Control
7. Diversification
8. bank deposits amount
9. Governance
10. Market share
11. Inflation
12. GDP growth
13. The tax
14. Market concentration
15. The maturity of the banking sector
16. The stock market
17. The Choice of a country
4. MATERIALS AND METHODS OF STRUCTURAL ANALYSIS
Analysis of the results led initially by a preliminary investigation of perceptions that are players in
the Tunisian bank (BIAT).
From cognitive maps, we could identify and qualify the designs are the actors of the field of bank
performance. The development and analysis of cognitive maps were made using the Mic-Mac
software. Our initial investigation focused on two elements: the relative importance of concepts and
analysis of the dynamics of influence / dependence concepts (or variables) in the cognitive
universe of actors in the bank. The relative importance of concepts was evaluated from the MIC. Mic-
Mac program allowed us to rank the concepts in order to "balance" and "dependency."Thus arise the ideas
that dominate in the cognitive universe of actors.
4.1 Overview of structural analysis method
The main objective of structural analysis is to identify the most important variables in determining the
evolution of the system. Inspired by graph theory, structural analysis is based on the description of a
system using a matrix linking all its components. By weighting these relationships, the method highlights
the key variables to changes in the system. As a tool, we opted for the software "Micmac" (cross-impact
matrices, Multiplication Applied to Classification).
The first step of the method MICMAC is to identify all the variables characterizing the system under
study (both external and internal variables). The second step involves the linking of variables in the
construction of the matrix of direct influence and potential. Indeed, this approach is supported by the fact
that in a systemic approach, a variable exists only through its network of relationships with other
variables.
It is from this matrix what has identified the key variables. Indeed, we obtain the classification by
the direct sum row and column. If the total connections line indicates the importance of the influence of a
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variable on the overall system (direct motor level), the total column shows the degree of dependence of
one variable (level of direct dependence). The ranking against indirect detects hidden variables through
a matrix multiplication program applied to indirect classification."This program allows us to study the
distribution of impacts by the paths and feedback loops, and therefore to prioritize the variables in order
of influence."
4.2 Matrix and processing MICMAC method Page | 24
All structural analysis matrices above have been established only from direct relationships between
variables. However, it is clear that a variable can also exert influence on other variables indirectly, or
through another variable ("path" of order 2), or through several others exercising their influence cascaded
through "paths" for longer and longer, and can also loop over themselves. The classification of motor
skills may be significantly altered, and understanding the mechanisms of the system similarly.
Establish direct relations matrices indirect paths of length two, then three ... then N would quickly become
intractable.
A relatively simple mathematical processing (multiplication of a matrix by itself and elevation of the
power matrices N) solves this problem. Benefiting from the spread of computers and personal computer,
the method MICMAC (cross-impact matrix-multiplication applied to classification) is a commercial
version. As expected, the rankings of variables by motor / decreasing influence (or dependence) generally
find it changed. But experience has shown that these rankings become almost stable after three or four
students to the power, and they are clearly the importance of some new variables in terms of their indirect
influences.
Map and analyzed at the collective level, the map is the collective model of mental representations of
several people on a research topic identified. In some cases, the cards are developed by collective
aggregation of individual cards and in other cases they are developed directly by building a group card. In
the first case, the card is called collective and composite map is constructed by superimposing individual
maps (M.G. Bougon & J.M. Komocar, 1994; J.Ford& H. Hegarty, 1984). While in the second case, the
cards are called strategic and more individuals come to gether to create a community card. It then seeks to
map the shared perceptions of a group of individuals on a particular area.
PRESENTATION OF VARIABLES LIST OF VARIABLES
THE INPUT
This step was to compile a matrix of direct influence between these variables in a scoring session.
Matrix of direct influence (MID) which describes the relationship of direct influence between the
variables defining the system and the Matrix Influences MIDP represents the potential
direct influences and dependencies between existing and potential variables. The scoring has
developed the input matrix "matrix of direct influences (MID). The influences are rated from 0 to 3, with
the ability to report potential influences.
MATRIX OF DIRECT INFLUENCES (MID)
Matrix of direct influence (MID) describes the relationship of direct influences between the
variables defining the system.
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Table 3 : Matrix of direct influences
size
Capitalization
Liquidity
Creditability
Efficiency
Control
Diversification
Bank Deposits Amount
Governance
Market Share
Inflation
GDP growth
The tax
Market concentration
maturity
Stock market
Choice of a country
Page | 25
Size 0 1 0 2 0 3 0 1 0 P 0 2 0 0 2 0 1
Capitalization 1 0 0 0 0 0 0 0 0 0 0 P 0 0 0 2 0
Liquidity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1
Credit quality 2 0 0 0 0 0 2 0 0 0 0 0 0 3 0 0 0
Efficiency 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 2
Control 3 0 2 0 0 0 0 0 0 0 0 0 2 0 0 0 3
diversification 0 0 0 2 0 0 0 0 0 0 0 0 P 0 0 0 P
bank deposits 1 0 3 0 0 0 0 0 P 0 0 0 0 0 0 1 0
amount
Governance 0 0 0 0 P 0 0 0 0 0 0 1 0 0 0 0 0
Market share P 0 0 0 1 0 0 3 0 0 0 0 0 2 0 0 P
Inflation 0 0 0 0 2 0 0 0 P 0 0 0 0 0 0 1 0
GDP growth 2 0 0 1 0 0 0 0 0 0 0 0 3 1 0 0 0
The tax 0 0 P 0 0 3 0 0 0 2 0 0 0 0 0 0 1
Market 0 0 0 1 0 0 0 P 0 0 0 0 0 0 1 0 0
concentration
Maturity 0 0 3 0 0 0 0 0 0 0 0 3 0 1 0 0 0
stock market 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0
The Choice of a 1 0 2 0 1 0 0 0 0 0 0 0 0 0 0 0 0
country
The influences are rated from 0 to 3, with the ability to report potential influences:
0: No influence 1: Low 2: Average 3: Strong P: Potential
MATRIX OF DIRECT POTENTIAL INFLUENCES (MIDP)
The Matrix Influences MIDP represents the potential direct influences and dependencies between existing
and potential variables.
It complements the matrix MID also taking into account possible relationships in the future.
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Table 4: Matrix of potentiel direct influences
Size
Capitalization
Liquidity
Creditability
Efficiency
Control
Diversification
Amount
Bank Deposits
Governance
Market Share
Inflation
GDP Growth
The Tax
Market Concentration
Maturity
Stock Market
Choice Of A Country
Page | 26
Size 0 1 0 2 0 3 0 1 0 3 0 2 0 0 2 0 1
Capitalization 1 0 0 0 0 0 0 0 0 0 0 3 0 0 0 2 0
Liquidity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1
Credit quality 2 0 0 0 0 0 2 0 0 0 0 0 0 3 0 0 0
Efficiency 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 2
Control 3 0 2 0 0 0 0 0 0 0 0 0 2 0 0 0 3
diversification 0 0 0 2 0 0 0 0 0 0 0 0 3 0 0 0 3
bank deposits 1 0 3 0 0 0 0 0 3 0 0 0 0 0 0 1 0
amount
Governance 0 0 0 0 3 0 0 0 0 0 0 1 0 0 0 0 0
Market share 3 0 0 0 1 0 0 3 0 0 0 0 0 2 0 0 3
Inflation 0 0 0 0 2 0 0 0 3 0 0 0 0 0 0 1 0
GDP growth 2 0 0 1 0 0 0 0 0 0 0 0 3 1 0 0 0
The tax 0 0 3 0 0 3 0 0 0 2 0 0 0 0 0 0 1
Market 0 0 0 1 0 0 0 3 0 0 0 0 0 0 1 0 0
concentration
Maturity 0 0 3 0 0 0 0 0 0 0 0 3 0 1 0 0 0
stock market 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0
The Choice of a 1 0 2 0 1 0 0 0 0 0 0 0 0 0 0 0 0
country
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The influences scores are from 0 to 3:
0: No influence 1: Low 2: Average 3: Strong
Sum of rows and columns

Page | 27
N° VARIABLE TOTAL OF ROWS TOTAL OF COLUMNS

1 Size 12 10
2 Capitalization 3 1
3 Liquidity 2 10
4 Credit Quality 9 7
5 Efficiency 3 4
6 Control 10 9
7 Diversification 5 2
8 Bank Deposits Amount 5 6
9 Governance 1 1
10 Market Share 6 3
11 Inflation 5 1
12 GDP Growth 7 6
13 The Tax 7 5
14 Market Concentration 2 7
15 Maturity 7 7
16 Stock Market 3 4
17 The Choice of A Country 6 8
Total 93 93
Weight of each concept W = W '+ W'' with W': sum of lines and W'': Column totals
W1=22,W2=4,W3=12,W4=16,W5=7,W6=19,W7=7,W8=11,W9=2,W10=9,
W11=6,W12=13,W13=12,W14=9,W15=14,W16=7,W17=14
Concepts 1, 6 and 4 are the most central. The calculation of the weight of each concept from the direct
influence matrix shows that concepts: size, control and credit quality are the most central.
5. CONCLUSION AND IMPLICATIONS OF THE RESEARCH
Empirical evidence finds that size, control and credit quality are a significant determinant of banks’
performance.We found that a significant relationship between bank performance and size of the banking.
The size of the banking is an important variable because large size is expected to promote economies of
scale and reduce the cost of gathering and processing information. In general, large-sized banks have the
advantage of providing a larger menu of financial services to their customers, and hence mobilize more
funds (Bashir, 1999). SIZE is used to capture the fact that larger banks are better placed than smaller
banks in harnessing economies of scale in transactions to the plain effect that they will tend to enjoy a
higher level of profits. Consequently, existence of an important relationship between size and
performance. Molyneux and Thornton (1992), Bikker and Hu (2002) and Goddard et al. (2004) find size
has a positively related to profitability.
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Our results show also that the control and credit quality are two important variables that contribute to
bank performance. Million Cornet et al. (2010) point out that the difference in performance between
private and public banks is even more pronounced in countries where power is heavily involved in the
banking system and where political corruption exists.
Plan influences/ direct dependencies Page | 28
Size
Control Capitalization
Credit quality Governance
Liquidity
Inflation
Maturity Diversification The tax
Efficiency Stock market
Market concentration
Bank deposit amount
References
GDP growth Market share Choice of a country
Figure2: Cognitive mapping through the plan influences dependencies
This plan visualizes the concepts (variables) structuring the cognitive universe of actors can be projected
in terms of influences / dependencies. By the distribution of the scatter plot variables in this plan,
particularly in relation to different quadrants, we can distinguish four major categories of variables.
The first quadrant includes the most prominent concepts in the dynamics of thought of the actors. For the
actors of BIAT, the notions of "SIZE", “CONTROL”, and “CREDIT QUALITY” are the most dominant
in their cognitions reflecting an intention that internal variables are the determinants of bank performance.
The second quadrant contains the relay variables that are by definition both very influential and very
dependent. In analyzing the plan influences / dependencies, there are players for the concepts or ideas
illustrating the concepts of "GOVERNANCE","CAPITALIZATION" and “LIQUIDITY”.
The third quadrant contains the dependent variables or resulting. They are both influential and very little
dependent, therefore particularly sensitive. They are the results of which is explained by the variables and
motor relay. Thus there are only one variable namely on trust. The fourth quadrant contains the variables
that are simultaneously autonomous and influential little bit dependent. They are relatively excluded from
the dynamics of thinking by the Tunisian bank.
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Employee Induction and Orientation at Public

Sector Organization: A Case from Pakistan
Imran Saeed Page | 32
PhD(Scholar) in Management, International Islamic University, Islamabad.
Muhammad Arif
Lecturer In IBMS, UOA, Peshawar
Hina Gul
Lecturer in IBMS, UOA, Peshawar
Bushra Ayaz
Lecturer in NUML, Peshawar
Qasim Khan
Lecturer in NUML, Peshawar
Pakistan
ABSTRACT
This study is intended to debate on the issue of new employee induction being beneficial or
an extra burden for an organization. This research describes the basic requirements, details
and importance of an induction plan. The preparations made by an organization to welcome
a new member into their family and the actors involved in the training and development
teams linkage with the induction process. To explain topic better Public sector organization
has been taken as a case study. The results of the conducted study reveals that an induction
process should include the issue of “Get the practical stuff right, have a plan, inspire them,
socialize and be systematic”. This study helps us value the importance of inducting fresh
employees in an organisation. The area of preparing an induction checklist for supervisors
and also one for those in charge of induction program is covered in the document. Estimate
of the success of induction process in the perspective of organisational aims, long term and
short term objectives is also narrated.
1. INTRODUCTION
1.1 Background of the study

Abundant evidence indicates that induction is useful, if not necessary, technique in moral development.
Parents who use induction to explain the implications of their child's behavior on others generally have
children who demonstrate consideration for others, resistance to temptation, and little aggression.
Likewise, supervisors who provide logical explanations for why employees should behave honestly, why
they should be helpful to others, and why they should be loyal to the company, will help employees to
acquire moral values of honesty, pride, in work and loyalty.
Traditionally the process of employee induction includes showing new employees the places and things in
the organization, introduction with only few coworkers and wishing them good luck. That is not enough.
New employees expect much more than this and they truly deserve more than this. Most common
complaints that new comers experience are that they are bored, overwhelmed and completely left on their
own which adds to the confusion. Such little understanding of the things and situations around him/her
lead the person to frustration and takes too much time to be productive. Situation gets worse in some
organizations in which the new comers quit the job. Public sector organization gives great importance to
its employees. They are constantly putting efforts in the training and development of their hardworking
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staff. As soon as a person enters the organization as a new recruit they start polishing them so that they in
turn give new edge to the organization.
The term ‘induction’ is most commonly used in a workplace context to explain the process in which
employees of an organization adjust to their jobs and become familiar with the new environment. The
main aspect of this process includes ‘orientation’ in which the newcomers are welcomed and given the
Page | 33
basic information about the organization. It is a kind of training event in which the new starters are
familiarized with basic rules and regulations. Following orientation another important aspect is
‘socialization’ which is a slow process and also very much dependent on the employees. Socialization
includes building up working relationships with colleagues and joining various groups and teams to
perform the roles appointed to them and to carry out the role efficiently. A similar term ‘on boarding’ is
also used by some people to explain the whole process starting from the initial contact of the individual
with the company or organization before formally joining it and finding its way through understanding
and getting used to the business’ ways of working and attaining a proper place in the organization.
1.2 Purpose of Induction
The purpose of a good induction practice would be to aid a new member of staff with the "settling down”
operation. Getting into a new career is a demanding encounter, because of new conditions and
requirements as well as anxieties connected with looking absurd. Through the moving - in phase, a new
worker is less likely to be effective or perhaps thoroughly effective and might possibly go away in case
the feelings about unease are formidable.
Hence, it is worthwhile spending some time at successful induction, since serious benefits could be
created with prevention from problems triggered as a result of unfamiliarity, speedy results of complete
productiveness along with reduction of costs suffered with pointless recruitment to replace lost
employees.
1.2.1 Orientation
Induction is followed By Orientation. Induction is a short term activity while Orientation is a long term
activity. The subject matter of Induction and Orientation is; Induction means an overall preview of the
company like introductory videos and presentations on the other hand Orientation is a practical overview
of the company which includes introduction to the people of the organization and making the new comer
familiar with everyone and everything giving him a realistic picture of the environment of the company
he is joining. In this document both the terms are used interchangeably.
1.2.2 Induction process at Public sector organization

It is the policy of Public sector organization to accept as well as orient fresh staff in a well-timed and
steady fashion to be able to make certain complete comprehension together with conformity with Public
sector organization procedures and operations. New workers usually are introduced to team employed in
the same office on the first day of employment. New staff have a work area organized prior to when
they turn up having elementary office materials, table, along with office chair. Early orientation takes
place by the end of the employee’s very first week of job and arranged / planned by HR.
Public sector organization seeks to attract, motivate and retain the best individuals in the right positions
needed to enable the organization to successfully achieve its vision and mission. Staff development
procedures enable organization-initiated departmental staff promotions, transfers, and interim
appointments to occur independently of job posting recruiting procedures. They use different channels
for induction like Printed materials, an induction website, an employee handbook, an induction
companion program and an induction training event. The orientation process is initiated as soon as HR
department receives acceptance letter from the approved candidate.
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Induction of employees at the time of hiring is an integral step not only to welcome but to make them
familiar with the organization. It is considered to be the first formal training session aiming at enhancing
the understanding of the organization and future development initiative.
For better administration of induction, the classification of the inductees to be done into two major
groups, the detail of these groups is as follows;
Page | 34
Grade 12 or equivalent are considered as group 1 (GI) and are inducted by Group HR
Department Army Welfare Trust (AWT)
Grade 9-11 or equivalent are considered as group 2 (GII) and is the responsibility of Business
Units
Grade 7-8 considered as group 3
1.3 Statement of the problems
Pakistan is a developing country. The service in industry is not developed to a considerable extent.
Human resource practices are also very common. Most of the government setups are run by registrar
system. Orientation of the new coming employees is not a common practice. The result is that employees
feel lovely in the organization .there are organizations who follow a formal orientation program for fresh
employees. Army Welfare Trust is one of them. In order to know the perception of employees regarding
such activity and its effectiveness, this study was undertaken. It will help in improving the process.
1.4 Purpose of the study
The main purpose of the study conducted is to get an overall idea about the Public sector organization
induction plan and to analyze its various activities. The whole recruitment and orientation of the new
inductee is followed in this study. The main reason for selecting this organization is the elaborate
induction plan adopted in it which is not that common in Pakistan. Public sector organization is a large
firm and inducts new employees almost every month. They all pass through induction but still their
productivity level is not that high. In this study the reasons of low productivity of the plan and a new
plan good attributes are covered. I find it very interesting to know about the impact of a good induction
plan on the organization. The importance of employee induction in employee satisfaction, retention and
overall performance is investigated as well.
1.5 Objectives of the study
The major objectives of the study are;

• To provide an overview of the induction and orientation process followed in practice.
• To analyze the induction and orientation plan of AWT Head Office Rawalpindi.
• To study long term loyalty of the employees in this regard.
• To know the coordination between the newly hired employee, who pass through the induction
and orientation program.
This section includes some of the notable works done in relation to the topic under study. It shows that
the chosen topic is a much researched field of study and is also important aspect of business practice.
Some of the works are given below.
John et al., (1991) in their study found the commitment of Psychology professor at the University of
Western Ontario, to be positively correlated with indicators such as “self-report measures of motivation
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and performance”, whereas continuance and normative commitment have not. This is likely because
employees that are affectively committed are said to remain at an organization “because they want to,
whereas those who have a strong continuance commitment remain because they have to”. Meyer further
states that the development of affective commitment requires a mix of job choice characteristics, personal
characteristics, and certain expectations about the job.
Page | 35
Mills and Murgatroyd, (1991) stated that the programs that are designed for staff induction should be
consistent and according to the overall HR strategy of the organization. The socialization process makes
the new comers capable of learning the rules of organizational routine. If the induction program is
according to the overall HR strategy the new comers will get acquainted with them very soon and will
become productive employees for the organization.Gillian and Whitcomb (2000) states that employers
want to help new employees get through this initial stage of starting a new job as quickly as possible.
Many organizations operate an induction program to help new employees become effective members of
the organization, and to introduce them to their new job and their work colleagues such programs may be
organized and managed by human resource office, although a key role will be played by personnel in the
department where the new worker is employed.
Zineldin (2000) state that orientation and induction process is aimed to retain employees. Retention
defined as “an obligation to continue to do business or exchange with a particular company on an ongoing
basis”. Ardts et al. (2001) said that organizational socialization is the process of learning through which
such attitudes are developed by newcomers that are necessary in performing their appointed roles
efficiently and effectively. Stauss et al. (2001) a more detailed and recent definition for the concept of
retention is “customer liking, identification, commitment, trust, readiness to recommend, and
repurchase intentions, with the first four being emotional-cognitive retention constructs, and the last two
being behavioral intentions”.Davenport, cited by Martel (2002) states that one of the most important
processes crucial to the organization is orientation of new employees. A well-oriented employee can be
very productive for the company. As the employee becomes familiar to the environment, his/her fear of
working in a strange and new place subsides and contributes with their full energy.
Wyatt cited by Martel (2002) is of the opinion that there exists a correlation between early education in
the organization and performance. In a study conducted by him in 1998 regarding the competencies and
competitive edge, Wyatt finds that almost seventy percent of organizations, showing average financial
performance, look at employee’s early development within organization, including induction, as a
building block of success. Martel (2002) explored why different organizations give so much importance
to orientation process and why it is considered as a perfect tool to ensure god productivity and retention of
employees. Different well- known organizations were studied by Martel and concluded that the process of
orientation in such best organizations is started from the very first day. It is felt that orientation is a kind
of assimilation process in which all of the information about the company is collected and shared which
makes the new employee feel good. Such programs also contribute to the culture of the area and of the
company resulting in good reputation and success.
Doris (2002) state that in the year 2000, companies that participated in the benchmarking service spent
only 7 percent of their training dollars on new employee orientation and training program. Every
employee in the company needs a program that can provide all of the important value. Fortunately, it is
felt by many companies that first impression is very important and so they are developing such first
impression programs on many different levels. They are hiring full time or part time orientation
facilitators and even full staffs devoted entirely to the effort of orientation of new employees.
Barlow (2003) suggests that additional measurable outcomes of effective orientation programs such as
“turnover, absenteeism, and job performance are also linked to employee commitment”. When defining
employee commitment, its multidimensional nature should be mentioned because on an organizational
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level it encompasses affective, continuance and normative commitment. When an employee has
emotional attachment with his/her organization, this is affective commitment. It is often stated as ‘an
individual remaining with organization because he/she wants to remain there’ and is comfortable in that
organization. Continuance commitment is that commitment in which an employee is staying with an
organization after weighing the costs and benefits of leaving the job, whereas normative commitment
refers to an employee remaining with an organization out of a perceived obligation to the employer.
Page | 36
According to Bob Schultz (date unknown) a specialized orientation consultant from Grand Rapids,
Michigan, states that orientation should be directed at such goal as to “have the person psychologically
join the organization from the first day”.. This surfaces the issue of socialization and how it can serve as
an intermediary between the actual employee orientation and development of affective commitment.
Wong (2004) wrote the process of induction is a comprehensive training and support program that lasts
for 2 to 3 years and then gradually becomes a part of the organizational routine whereby new teachers are
kept teaching and aimed at increasing their effectiveness. Lawson (2006), orienting the new employee is
intended to develop and enhance good communication with the new employees from the very start; the
introduction of policies and procedures, departmental goals, customs and traditions; to understand
responsibilities and expectations clearly and the provision of the information to the new employee that
will facilitate the transition into his/her workplace. Thomas and Anderson (2006) induction is a gradual
learning process in which a person which is an outsider at first becomes the integrated insider, develops
and gain information about the structure of organization, its rules and official goals (artifacts) and social
rules (ostensive aspects) which are shaped by the organization’s history, traditions and politics. Moreover,
the individual is introduced to his work unit and how the different tasks are to be fulfilled, are taught. The
main aim of such socialization is the transfer of information to the new organizational member.
Carrell et al. (2006) stated that induction increases the level of commitment within the organization and
so it is listed as one of the most crucial processes of the organization. It is further stated that induction is
very closely related to recruitment but unfortunately it is the neglected domain of human resource
management.Birnholtz et al. (2007) said that it is the responsibility of the organization to convey
information about its formal and social rules to new comers. Haasbroek et al. (2008) is of the opinion
that one of the most stressful experiences of life is to start a new job and so developing and providing a
proper and effective induction program in the company can ease the tension of a lot of new comers.
Induction program should be sensitive to the uncertainties, needs and anxieties of the new employee.
Alan et al. (2009) says that induction is also known as socialization or orientation and it is also regarded
by some people as the last phase in selection and recruitment but at the same time it is also the first and
the initial phase of learning and development. Induction is the formal method by which new employees
are familiarized to the organization and appointed their roles.
3. RESEARCH METHODOLOGY
Universe of the study:
The study of this research area is Public sector organization head office in Rawalpindi city.
3.1 Research Purpose
The research purpose of this project report is mainly descriptive. It selected the sample purposively. This
section describes how is data analysis and sampling done.
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3.2 Sample Selection
For present study the sample was selected purposively. The sample included 30 participants of
orientation program at Army Welfare trust. These included employees from all grades. The only
similarity was that they were all member of the group who were given orientation.
Page | 37
3.3 Data Analysis
The data was qualitative in nature. It was in Likert scale format. There was a need to know the association
between various elements of the orientation process. For this purpose, cross tabulation for association of
different factors and its effectiveness was used by the formula given:
r c (O − eij )
2
x =∑2
∑
ij
, with (r-1) (c-1) degree of freedom
i =1 j =1 eij
Oij and eij is the observed and expected frequencies y of cell in ith row and jth column, respectively.
4. RESULTS AND DISCUSSIONS
This specific section is consisted of the results and its discussion in relation to the set objectives and
hence data collection. The study used the questionnaire used by Army Welfare trust. The first section is a
frequency distribution of the responses regarding different items of orientation programme. The second is
the cross tabulation of various important elements of the same program. The details are given below.
4.1 Relevancy of Orientation Material
The respondents recorded their views about various items in the orientation programme. The relevancy of
material is a very important ingredient in the orientation. If the material is not relevant, then the activity is
of no output. Most of the respondents termed the material as good. It counted for 53 percent of the total
responses in the same regard. Similarly 23.3% respondents viewed that the material was excellent while
only10 percent termed it poor. As most of the people i.e. 90% were satisfied with the material so we can
be confident of the material of the program.
Table No.1 Frequency distribution of Relevant orientation material

Item Frequency Percent Cumulative Percent
Excellent 7 23.3 23.3
Good 16 53.3 76.7
Average 3 10.0 86.7
Satisfactory 1 3.3 90.0
Poor 3 10.0 100.0
Total 30 100.0
4.2 Flexible Structure
The flexibility of structure is important in the sense that nothing remains constant and dynamism is the
need for success. The respondents were asked to respond about the flexibility of the structure of
orientation program. Only 10% were of the opinion that it was poor. The rest (90%) termed it either
excellent (16.7%), good (33.3%) or satisfactory (33.3%).
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Table No.2 Frequency Distribution of flexible structure

Good 10 33.3 50.0
Average 10 33.3 83.3 Page | 38
Poor 3 10.0 100.0
Total 30 100.0
4.3. Frequency Distribution Coordination for Activities
The information is consider reliable in the frequency Distribution Coordination for Activities .47%
people says that is good.33.3% as excellent,10% as average and poor. If the coordination for activity is
good then the information are usable practically and hence effective in its purpose.
Table No.3 Frequency Distribution of coordination for activities

Good 14 46.7 80.0
Average 3 10.0 90.0
Poor 3 10.0 100.0
Total 30 100.0
4.4 Quality of Information
The information was considered reliable in quality. The table no.3 shows the frequency tabulation of
responses about quality of information. There was no response that the information was of poor quality.
Most of the responses were good, i.e. 50% respondents valued it good, 20% as average and 30 percent
excellent. If the quality is good then information are usable practically and hence effective in its purpose.
Table No.4 Quality Information

Frequency Percent Cumulative Percent
Valid Excellent 9 30.0 30.0
Good 15 50.0 80.0
Average 6 20.0 100.0
Total 30 100.0
4.5 Frequency tabulation of Arrangement
The information was considered reliable in quality. The table shows the frequency tabulation of responses
about different arrangements. There was no response that the information was of poor quality. Most of the
responses were good, i.e. 10% respondents valued it good, 53.3% termed it as average and 36.7 percent
rendered it as excellent. If the quality is good then information are usable practically and hence effective
in its purpose.
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Table No.5 Frequency tabulation of Arrangement

Good 16 53.3 63.3 Page | 39
Average 11 36.7 100.0
Total 30 100.0
Frequency tabulation of Session

The table shows the frequency tabulation of responses about session. Majority of the responses were poor,
i.e. 83.3% respondents valued it poor, 3.3% as average and 13.3 percent as excellent. If the quality is poor
then information cannot be used practically and hence ineffective in its purpose.
Table No.6 Frequency tabulation of Session

Poor 25 83.3 96.7
Average 1 3.3 100.0
Total 30 100.0
4.6 Frequency tabulation of Communication

The information was considered reliable in quality and the table shows the frequency tabulation of
responses about communication between employees and supervisor. There was no response that the
information was of poor quality. Most of the responses were average, i.e. 50% respondents valued it as
average, 36.7% said it was good and 13.3 percent termed it excellent. If the quality is good then
information are usable practically and hence effective in its purpose.
Table No.7 Frequency tabulation of Communication

Good 11 36.7 50.0
Average 15 50.0 100.0
Total 30 100.0
4.8 Frequency tabulation of Understanding

The information was considered reliable in quality. Table shows the frequency tabulation of responses
about understanding or agreeing on a certain matter. There was no response that the information was of
poor quality. Most of the responses were good, i.e. 50% respondents valued it good, 20% as average and
30 percent excellent. If the quality is good then information are usable practically and hence effective in
its purpose.
Table No.8 Frequency tabulation of Understanding

Good 14 46.7 83.3
Average 1 3.3 86.7
Total 30 100.0
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4.9 Frequency tabulation of Familiarizing
The information was considered reliable in quality. This table shows the frequency tabulation of
responses about familiarizing the employee with the work environment. 60 percent of the responses were
good, 23.3% as average and 10 percent excellent where as only 6.7% rendered it as satisfactory.
Page | 40
Table No.9 Frequency tabulation of Familiarizing
Good 18 60.0 70.0
Average 7 23.3 93.3
Total 30 100.0
4.10 Frequency tabulation of Whole Program
The above table shows the frequency tabulation of responses of employees about the whole induction and
orientation program. There was no response that the information was of poor quality. Most of the
responses were good, i.e. 73.3% respondents valued it good, 6.7% as average and 20 percent excellent
Table No.10 Frequency tabulation of Whole Program

Good 22 73.3 93.3
Average 2 6.7 100.0
Total 30 100.0
4.11 The association between quality of information and understanding
To know the relation between quality of information and understanding responses regarding these two
were cross-tabulated. There was no response that the quality of information or understanding of the
inductee is poor. While 20% people were of the opinion that the induction process had excellent
understanding and the quality of information was also excellent.
Those who ranked quality of information as excellent and had good understanding of the induction
process were 10% of the whole. Similarly 16.66% had responded to have excellent understanding while
quality of the information was good. Those responding quality of information as good and understood to
average were just 3.33% and 13.33% had average views about quality and satisfactory response about
their understanding of information. The chi-square value of 22.597 (p=0.001) is statistically significant
and hence we can say that there is a significant association between quality of information and people’s
understanding of it. Similarly, there is a strong positive correlation between two variables.
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Table No.11 Quality information understandings cross tabulation
Count Understanding
Excellent Good Average Satisfactory Total
Excellent 6(20) 3(10) 0 0 9
Quality Page | 41
Good 5(16.66) 9(30) 1(3.33) 0 15
information
Average 0 2(6.66) 0 4(13.32) 6
Total 11 14 1 4 30
Pearson chi square value =22.597(P=0.001)
Correlation =.682 (P =.000)
4.12 The association between flexible structure and induction program
Very few people (3.33%) termed the induction program and its flexibility of the structure as excellent but
there was a good number (13.32) who termed the structure as excellent and the whole program as good. A
lot number responded that the structural flexibility was average and the program as a whole was good.
The association between the flexibility of the structure and the induction program is proved by the chi-
square test. The value (21.818) is statistically significant at the P-value of 0.005 so that is a strong
association between flexibility of the structure and the induction program.
Table no.4.12 Flexible structure induction program cross tabulation

Induction program
Excellent Good Average Total
Flexible Excellent 1(3.33) 4(13.32) 0 5
structure
Good 2(6.66) 8(26.64) 0 10
Average 0 9(30) 1(3.33) 10
Satisfactory 0 1(3.33) 1(3.33) 2
Poor 3(10) 0 0 3
Total 6 22 2 30
Source: survey
Pearson chi-square=21.818 (p value =0.005)
Pearson R = -0.152 (p value=0.423)
4.13 The association between activities coordination and the whole program:
Most of the respondents termed the whole program of induction as good. There was 10% of the people
who termed the program as excellent as well as the coordination for activities. There was 20% agreement
in the responses that the coordination for activities was excellent and the induction program as good.
There were maximum responses that both the induction program and the coordination for activities are
good (i.e. 14.33%). Similarly 10% people termed the coordination of activities as poor although the
termed the whole program as excellent. There was found the presence of significant association between
the coordination for activities and whole induction program. It was proved by chi-square value of
17.532 which is statistically significant at 5% significant level. There was a negative and significant
correlation between the variables i.e. coordination for activities and the induction program( R=-0.39). if
the activities are coordinated , then the program will take less time and will be effective.
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Table No.4.13 Coordination for activities whole program cross tabulation

Count Whole Program
Excellent 3(10%) 6(20%) 1(3.33%) 10
Coordination
for activities Good 0 13(14.33%) 1(3.33%) 14
Page | 42
Average 0 3(10%) 0 3
Poor 3(10%) 0 0 3
Total 6 22 2 30
Pearson chi-square=17.532 (P value = 0.008)

Pearson’s R = -0.390 (P value =0.033)
4.14 The association between coordination for activities and understanding
The responses regarding understanding of induction program and coordination for activities were cross
tabulated to know about any associated between them. There were 10% of respondents who think that if
there is an excellent coordination for activities, then the understanding will be excellent as well as
and16.66% think that excellent understanding is coupled with good coordination for activities. Similar
percentage was recorded for good understanding and good coordination for activities. While 13.33%
responded that good coordination for activities is associated with satisfactory understanding . There was
found a significant associated between coordination for activities and understanding of the inductees as
evident from chi-square value of 21.262 (P=0.012) while no significant coo relation was proved
(P=0.441) .If the activities are in proper manner and coordination , then it will help in understanding as
the activities are in proper order.
Table no.4.14 Coordination for activities understanding cross tabulation

Count Understanding
Excellent Good Average Satisfactory Total

Coordination Excellent 3(10%) 7(23.33%) 0 0 10
for activities Good 5(16.66%) 5(16.66%) 0 4(13.333%) 14
Average 0 2(6.66%) 1(3.33) 0 3
Poor 3(10%) 0 0 0 3
Total 11 14 1 4 30
Pearson chi-square = 21.262 (P value = 0.012)

Pearson’s R = -0.146 (P value=o.441)
4.15 The association between relevant material and communication:
People who termed that good relevant material is associated with good communication were 26.6% of the
whole and similar was the percentage for people who responded that good relevant material is associated
with average communication. Similarly 10% people termed that average relevancy of material are
coupled with average communication. While 10% had responded that poor relevancy of material have
excellent understanding.
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The association as a whole was found significant (chi-square =26.558 and P=0.001). If the material is not
relevant, it may be other variables which can effect communication for induction orientation.
Table no.4.15 Relevant material communications cross tabulation

Count Communication
Page | 43
Relevent Excellent 1(3,33%) 3(10%) 3(10%) 7
material Good 0 8(26.66%) 8(26.66%) 16
Average 0 0 3(10%) 3
Satisfactory 0 0 1(3.33%) 1
Poor 3(10%) 0 0 3
Total 4 11 15 30
Pearson chi-square = 26.558(P value =0.001)

Pearson’s R = -0.353 (P value =0.056)
4.16 The association between relevant material and understanding
The cross tabulation between relevant material and understanding resulted into somewhat mixed
responses . Those who responses excellent relevant material may have excellent understanding were
13.33% of the responses. Similarly 13.33% termed good material to be associated with excellent
understanding and 26.66% responded that good relevant material is associated with good understanding .
There was different responses that excellent understanding and poor relevancy of material is associated in
context to induction orientation .The chi-square resulted into non-significant relation/association between
relevancy of material and understanding (chi-square=12.063 and P=0.441) understanding may be totally
subjective . It depends on other things as well like intelligence quotient, attention ,material relevancy may
be one of the factors, but it cannot effect individually.
Table no.4.16 Relevant material understanding cross tabulation

Count Understanding
Excellent Good Average satisfactory Total

Relevant Excellent 4(13.33%) 3(10%) 0 0 7
material Good 4(13.33%) 8(26.66%) 1(3.33%) 3(10%) 16
Average 0 2(6.66%) 0 1(3.33%) 3
Satisfactory 0 1(3.33%) 0 0 1
Poor 3(10%) 0 0 0 3
Total 11 14 1 4 30
Pearson chi-square = 12.063 (p value =0.441)

Pearson’s R = -0.076 (p value =0.688)
4.17 Association between relevant material session cross tabulation:
The responses regarding understanding of induction program and coordination for activity for cross
tabulation to know about a relation between them. People who termed that good relevant material in
association with session were 46.66 % . similarly the percentage for people who responded average
relevant material associated with the average session was 10% while 10% responded that poor relevancy
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of material were recorded. The association was found significant(chi-square 32.346 and p-value=0.60). if
material is not relevant maybe other variable effect session for induction and orientation.
Table no.4.17 Relevant material session cross tabulation

Count Session
Excellent Poor Average Total
Page | 44
Relevant Excellent 2(6.66%) 5(16.66%) 0 7
material Good 2(6.66%) 14(46.66%) 0 16
Average 0 3(10%) 0 3
Satisfactory 0 0 1(3.33%) 1
Poor 0 3(10%) 0 3
Total 4 25 1 30
Pearson chi-square =32.346 (p value =0.000)

Pearson’s R =0.346 (p value =0.061)
4.18 Association Relevant material power point quality crosses tabulation:
The cross tabulation between relevant material in power point quality resulted from mixed responses.
Those who responded about excellent power point quality relevant material were 3.33% of the responses.
Similarly 40% termed good relevant material associated with the power point quality. The average
material associated with the power point quality were 6.66%. there were different responses between
excellent and good relevant material associated with the power point quality result. The chi-square
resulted into non significant relation between relevant material and power point quality(chi-square 26.091
and p-value = 0.001)
Table No.4.18 Relevant material power point quality cross tabulation

Power point quality
Excellent 1(3.33%) 6(20%) 0 7
Relevant Good 12(40%) 3(10%) 1(3.33%) 16
material Average 1(3.33%) 0 2(6.66%) 3
Satisfactory 0 1 0 1
Poor 3(6.66%) 0 0 3
Total 17 10 3 30
Pearson chi-square = 26.091 ( p value = 0.001)

Pearson’s R = -0.162 ( p value = 0.392)
5. SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
This study was undertaken to report the feedback of new employees about the orientation process of
Army Welfare trust. Army Welfare trust undertake a formal orientation program regularly. The
participants were all those people who undergo the orientation process. The research purpose of this
project report was mainly descriptive. It selected the sample purposively. The sample included 30
participants of orientation program at Army Welfare trust. The results are summarized as follows:
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Most of the respondents termed the material as good. It counted for 53 percent of the total
responses in the same regard. Similarly 23.3% respondents viewed that the material was excellent
while only10 percent termed it poor. As most of the people i.e. 90% were satisfied with the
material so we can be confident of the material of the program.
Only 10% were of the opinion that the flexibility of structure was poor. The rest (90%) termed it
either excellent (16.7%), good (33.3%) or satisfactory (33.3%).
Page | 45
As far as the quality of information is concerned, most of the responses were good, i.e. 50%
respondents valued it good, 20% as average and 30 percent excellent. If the quality is good then
information are usable practically and hence effective in its purpose.
Most of the responses termed the arrangement as good, i.e. 10% respondents valued it good,
53.3% termed it as average and 36.7 percent rendered it as excellent.
Majority of the responses regarding session were poor, (i.e. 83.3% respondents valued it poor)
3.3% as average and 13.3 percent as excellent. In case of communication, most of the responses
were average, i.e. 50% respondents valued it as average, 36.7% said it was good and 13.3 percent
termed it excellent.
Half of the respondents ( 50%) opined that they had a good understanding of the orientation,
20% as average and 30 percent excellent.
60 percent of the responses were good about the familiarizing ability of the orientation program,
23.3% as average and 10 percent excellent where as only 6.7% rendered it as satisfactory.
Most of the responses were good, i.e. 73.3% respondents valued it good, 6.7% as average and 20
percent excellent regarding the whole orientation program.
Those who ranked quality of information as excellent and had good understanding of the
induction process were 10% of the whole. Similarly 16.66% had responded to have excellent
understanding while quality of the information was good. Those responding quality of
information as good and understood to average were just 3.33% and 13.33% had average views
about quality and satisfactory response about their understanding of information. The chi-square
value of 22.597 (p=0.001) is statistically significant and hence we can say that there is a
significant association between quality of information and people’s understanding of it.
Very few people (3.33%) termed the induction program and its flexibility of the structure as
excellent but there was a good number (13.32) who termed the structure as excellent and the
whole program as good. A lot number responded that the structural flexibility was average and
the program as a whole was good. The association between the flexibility of the structure and the
induction program is proved by the chi-square test. The value (21.818) is statistically significant
at the P-value of 0.005 so that is a strong association between flexibility of the structure and the
induction program.
There was 10% of the people who termed the program as excellent as well as the coordination for
activities. There was 20% agreement in the responses that the coordination for activities was
excellent and the induction program as good. There were maximum responses that both the
induction program and the coordination for activities are good (i.e. 14.33%). Similarly 10%
people termed the coordination of activities as poor although the termed the whole program as
excellent. There was found the presence of significant association between the coordination for
activities and whole induction program.
There were 10% of respondents who think that if there is an excellent coordination for activities,
then the understanding will be excellent as well as and16.66% think that excellent understanding
is coupled with good coordination for activities. Similar percentage was recorded for good
understanding and good coordination for activities. While 13.33% responded that good
coordination for activities is associated with satisfactory understanding. There was found a
significant associated between coordination for activities and understanding of the inductees as
evident from chi-square value of 21.262.
There were 10% of respondents who think that if there is an excellent coordination for activities,
then the understanding will be excellent as well as and16.66% think that excellent understanding
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is coupled with good coordination for activities. Similar percentage was recorded for good
understanding and good coordination for activities. While 13.33% responded that good
coordination for activities is associated with satisfactory understanding. There was found a
significant associated between coordination for activities and understanding of the inductees as
evident from chi-square value of 21.262 (P=0.012) while no significant coo relation was proved
(P=0.441).
Page | 46
People who termed that good relevant material is associated with good communication were
26.6% of the whole and similar was the percentage for people who responded that good relevant
material is associated with average communication. Similarly 10% people termed that average
relevancy of material are coupled with average communication. While 10% had responded that
poor relevancy of material have excellent understanding. The association as a whole was found
significant (chi-square =26.558 and P=0.001).
Those who responses excellent relevant material may have excellent understanding were 13.33%
of the responses. Similarly 13.33% termed good material to be associated with excellent
understanding and 26.66% responded that good relevant material is associated with good
understanding . There was different responses that excellent understanding and poor relevancy of
material is associated in context to induction orientation .The chi-square resulted into non-
significant relation/association between relevancy of material and understanding (chi-
square=12.063 and P=0.441).
People who termed that good relevant material in association with session were 46.66 % .
similarly the percentage for people who responded average relevant material associated with the
average session was 10% while 10% responded that poor relevancy of material were recorded.
The association was found significant(chi-square 32.346 and p-value=0.60).
5.2 Conclusion
The study on army welfare trust reveals that orientation plans do affects an employee adjustment in the
organization. Such strategy is helpful in developing an understanding between employees. An employee’s
time is not wasted on understanding of processes and locating places. The need is to standardize the
method and develop coherence between steps. It’s imperative that induction is not treated as only a ‘tick
box’ exercise, it must be seen as a critical opportunity to introduce latest employees to the prevalent
culture and the adopted ways of working of the company business. Managers (with guidance from HR)
are required to invest appropriate time in inducting fresh employees so that they become productive more
swiftly and to help the new recruits fit in and prevent leaving within their initial six months on the job.
Orientation (or lack of it) makes a major difference in how swiftly an employee becomes more
productive, and has also proved to have long term effects on the overall organization.
A well tailored induction process can determine how easily and quickly the new employee settles in the
organisation and the swiftness with which they develop and reach their highest potential. Giving the
employee every bit of information they must know in relation to their required time at the company’s
business further determines its effectiveness.
The importance of the duration of the induction has been stressed upon throughout the article. No matter
how long it takes to make sure and acknowledged by every member of the decision making authority that
the new employees are integrated completely into the organization’s business, but it is important to go
through. Having a ‘follow up’ appraisal to solve all sorts of queries that the employees (or yourself) may
have is also integral. Engage everyone that you think are essential to create excellent relations between
the fresh employees and already settled employees. Try to make the new employees feel welcomed and
comfortable in all ways that will entail their presence. When a new staff member is hired, it is crucial that
they are given the right induction and orientation that will benefit themselves and the business, balancing
the flow of confidence in every direction. The induction phase can be considered as well as the
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

foundations for receiving the most out of our fresh employees and to establish their long term
accomplishment in the business. The induction process duration and nature depends upon the complexity
of the responsibilities and the experience of the new Comer. I would like to close my debate with a
conclusion that, “One size does not fit all - a standardized induction course is unlikely to satisfy anyone.
Hence tailor-made induction programmes increase employee understanding, satisfaction, motivation and
staff retention.”
Page | 47
5.3 Recommendations
1. There should be coherence between processes.

2. Focus must be given toward familiarity of the job and its requisites.
3. Rules and regulations as well as policies must be included.
4. The company should increase the training and development budget so as to promote the concept
of learning organization for a healthy return.
5. A proper training setup including training experts needs to be established at the AWT Head
Office to overlook the aspects of training and explore new avenues to attract competent people
to do their jobs.
6. A handsome and attractive salary packages will attract and motivate employees which in turn
will improve retention of their trainers. Young and agile applicants will strive for the handsome
offers thus resulting in prosperity of the organization.
7. It is vital that the induction method is consistent to guarantee that all new comers receive the
same induction experience and messages. If Induction is implemented effectively it has the latent
to reduce turnover and absenteeism, and heighten morale
8. A well in-place accountability system will ensure no misuse of resources and efforts. Mistakes
may be corrected and ignored but intentional misuse and wastages should be properly checked
and accounted for. Defaulters should be treated with punitive measures to prevent others from
adopting foul methods and means.
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Performance of Women Cooperative Dairy

A Study on Mulkanoor Women Cooperative Dairy in Andhra
Pradesh
Page | 49
♣
Dr.Murali Vallapureddy
Associate Professor
Mahboobia Panjetan P.G. College,
Warangal, Andhra Pradesh India.
ABSTRACT
People of rural India face a lot of hardships to earn livelihood. A majority of them are
engaged in agriculture, animal husbandry and other ancillary activities. Income from
agricultural activity has been as erratic as the monsoon. Hence, rural people are forced to
think of generating additional revenues. Since these people are less literate and posses
limited skills, the hunt for alternate source of income is constrained to a few occupations.
A majority of them choose rearing of milch cattle and selling the milk as a source of
secondary income. A cattle rearing is a diversification from existing agricultural activity.
Largely, rural women are engaged in this activity. These rural women, besides doing hard
household chores, also undertake the taxing job of cattle rearing. The present paper study
on “Performance of Women Cooperative Dairy – A Study on Mulkanoor Women
Cooperative Diary in Andhra Pradesh”, the MWCD (Swakrushi) is a promising
community enterprise in enhancing livelihoods of large numbers of rural producers. It
began its operations in Aug’ 2002 and in Mar’12, it has been providing services to its
20,118 members. The aim of the study is an attempt to identify the various
factors/dimensions that have contributed to the growth of this rural women initiative. The
focus on analysis of the growth path is particularly important as the development sector is
trying more and more to discover the process of enhancing large number of livelihoods
for rural poor and producers.
Keywords: Women Cooperative Dairy, Livelihood, Cattle rearing;
1.INTRODUCTION
In India no problem is as grave and alarming as that of employment, poverty and unemployment rates
followed by the glaring inequalities of income and consumption, which have been substantial. The animal
production enterprises particularly dairying provides not only additional income, but also provides much
larger employment opportunities to rural population. The agriculture, being only seasonal, the dairy
industry provides off-season work, regular income and keeps the rural population employed through out
the year.

♣
I am grateful to Mulkanoor Women Cooperative Dairy for providing Annual Reports and Information and I thank to my
College Management, Principal, Teaching and non-teaching staff for constant encouragement. I thank to Mr. M. Giri Prasad,
Mr.MD.Fasi, and Sadiqua madam for their comments, which have benefited this paper.
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Livestock sector has been playing an important role in Indian economy and is an important sub sector of
Indian agriculture. The contribution of livestock to GDP decreased from 5.22% in1999-00 to 4.36% in
2004-05 at current prices. According to Central Statistical Organization estimates, Gross Domestic
Product from livestock sector at current prices was about Rs 935 billion during 1999-00, (about 22.51%
of agriculture and allied GDP). This rose to Rs 1239 billion during 2004-05 with 24.72% share in
agriculture and allied GDP. But the share of livestock sector in the plan allocation covered at around
Page | 50
seven percent of the total agricultural outlay. India has been able to achieve milk production of 70 million
competitive edges over New Zealand, Australia and the USA of being able to produce milk at a lower
cost.
This sector plays an important and vital role in providing nutritive food, rich animal protein to the general
public and in supplementing family incomes and generating gainful employment in the rural sector,
particularly among the landless, small, marginal farmers and women. Distribution of livestock wealth in
India is more egalitarian, compared to land. Hence, from the equity and livelihood perspectives, it is
considered as an important component in poverty alleviation programme.
The dairy industry in India is spread over the entire country in innumerable small units in a much
disorganized form. In recent years, the Indian dairy industry is on the threshold of a good many changes
that would totally transform the dairy scene and give the needed thrust to its rapid growth to meet the
challenges ahead. Greater emphasis are to be needed on the areas of milk production, processing and
marketing research. In this task of development of dairy industry, cooperatives have been recognized as
an effective institution to improve the milk production potential and there by ameliorate the socio-
economic life of millions of small, marginal and land less cattle owners scattered over large areas.
As on March 2006 the dairy cooperative network includes 170 milk unions, which operates in over 346
districts, covers around 117575 village level societies, is owned by around 12.4million farmer’s members
of which 3.2millions were women. When comes to the milk production, India’s milk production increased
from 21.2 million metric tones in 1968-69 to 97.1 million metric tones in 2005-06, per capita availability
of milk was 241 grams per day in 2005-06, which went up from 112 grams per day in 1968-69. India’s
3.9 percent annual growth of milk production between 1995-96 and 2005-06 surpassed the 2 per cent
growth in population; the net increase in availability was around 2 percent per year. When comes to the
marketing, in 2005-06, average daily cooperative milk marketing stood at 168.06 lakh it’s, annul growth
has averaged about 5.8 percent compounded over the last five years. Dairy cooperatives now market milk
in all metros, major cities and more than 800 towns/cities. During the last decade, the daily milk supply to
each 1000 urban consumer has increased from 17.5 to 58.8 litres.(NDDB report).
Milk cooperatives are an integral part of the milk marketing and dairy development programme in India.
Popularly known as “operation flood” launched by the government of India in collaboration with the
world food programme of the United Nations in July 1970. One of the worlds largest rural development
programmes ever undertaken, the operation flood aims at the setting up of modern dairy industry to meet
the India’s rapidly increasing need for milk and its products and making it capable of viable and self
sustaining growth. Operation flood helped dairy farmers to direct their own development, placing control
of the resources they create in their own hands. A national milk grid links milk producers through out
India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while
ensuring that the producer gets fair market prices in a transparent manner on a regular basis. The bedrock
of operation flood has been village milk producer’s cooperatives, which procure milk and provide inputs
and services, making modern management and technology available to members. Operation flood
objectives included: (a) Increase milk production (“a flood of milk”) (b) Augment rural incomes (c)
Reasonable process for consumers.
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2.REVIEW LITERATURE
Jain (1980), in his study on dairy development, through cooperatives, discussed that dairy development in
Rajasthan included various aspects, like evaluation of cooperative system and its pattern of establishment,
methods of milk procurement, and processing; supply of technical inputs; animal breeding facilities,
supply of cattle feed; training and extensions; supervision and the extent of cooperative programme.
Page | 51
Dorsten (1986), the study related to the impact of the Kaira district cooperative milk producers union on
milk production in Kheda district, Gujarat. From the study, an unmistakable trend towards
commercialization of the livestock by the year 2000 AD. Although India possessed an enormous cattle
and buffalo population, annual milk production was very low. The average annual milk yield per cow was
about 504 kg. One of the major constraints was supply and quality of feeds and fodder. By the year 2000
AD, There was expected to be a short fall of concentrates, 19.8 MT of green fodder and 16.2 MT of dry
fodder. The shortage was expected despite the declining trends in the dairy cattle population. The study
proposed a number of suggestions for improving the feed and fodder situations and also the wealth and
breeding of dairy animals.
Reddy (2000), studied the employment opportunities and the standard of living among the rural folk and
compared between arable farming, mixed farming and dairy farming laborers in milk shed area of
Vijayawada and the dry land area of Chitoor. The data was collected by survey method from selected
respondents. The secondary data were collected, and analyzed. They found that mixed farming created 32
percent of extra work as compared to arable farming. The dairy farming created 45 percent of extra work
as against mixed farming and 92 percent of extra work as compared to arable farming. They also
estimated that an additional employment for 129 days as compared to mixed farming and 225 days as
compared to arable farming were found by maintaining dairy farm.
Usha Tuteja and Narinder Singh (2004), conducted a study on employment and income generation
through livestock based milk processing units in rural Haryana. The study revealed that the production of
milk in Haryana grew at the rate of 4.07 per cent per annum during 1980-1981 to 200-2001. Therefore,
milk processing on commercial scale has great potential in terms of enhancing the income of the farmers
by selling milk products in the expanding domestic and international markets. The milk processing units
on an average generated employment of 8.40 persons in Gurgaon and 5.86 persons in Jind district. The
factories generated the highest employment of about 14 persons in the former and 11 persons in the latter
district. The study highlighted that marketing of local products faced severe competition from the
multinationals. Hence, promotional policies need to focus on the marketing bottlenecks and devise
efficient marketing channels through public and private partnership. Special zones can be created in those
areas where raw material/milk is easily available. The alternative way could be formation of cooperatives
like Amul. The present study attempt to analysis the performance of Mulkanoor Women Cooperative
Dairy (Swakrushi) with the following objectives;
3.THE SPECIFIC OBJECTIVES OF THE STUDY
1. To study the performance of dairy cooperatives using both physical and financial indicators.
2. To analyze the cost return structure of milk production of dairy farmers
3. To study the impact of dairy cooperatives on milk production, income and employment of farmer
beneficiaries.
4. To workout the costs benefit analysis of dairy cooperative societies.
5. To suggest some policy measures for strengthening of women dairy cooperatives in rural areas.
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

4.HYPOTHESES
1. Dairy cooperatives are performing satisfactorily

2. The returns from dairy enterprises are considerably high
3. There is an increase in milk production, income and employment of Farmer beneficiaries
Page | 52
5. METHODOLOGY
This paper is based on the available of the secondary data about Mulkanoor Women Cooperative
Dairy in the form of Annual Reports, the project proposal, some internal documents, reports of
Cooperative Development Foundation and other related journals and books
BACKGROUND
The Mulkanoor Women's Cooperative Dairy (MWCD) BOX-1

started milk procurement on 17th August 2002 at around
Mulkanoor in Karimnagar District of Andhra Pradesh state Mission: MWCD mission is to
in India. It is one of the kinds where women are completely improve overall quality of life to dairy
managing and governing a commodity based community producers & consumers by running a
enterprise, 90 per cent staff in the MWCD is women. sustainable self sufficient and managed
women cooperative union setting and
However, the process began during 1997 itself. The
example for collective action and rural
women's thrift cooperatives of this area have caught with women capacity.
huge idle cash because of lean demand from the members. Vision: MWCD vision is to become
The idle funds have become Non Performing Assets the best value contribution in India for
(NPAs), generating no income, which became a cause of dairy services to producers and
concern. So, Women thrift cooperative members had series consumers by 2015.
of brain storming sessions on new investment avenues
which would benefit majority of members. Thus emerged
the idea of establishing cooperative dairy as we have realized most of the women members had milch
cattle and were already selling milk at less remunerative price.
By the year 1999-00 Women’s Thrift
Cooperatives, promoted with the guidance BOX-2
and support of Cooperative Development
Foundation (CDF), and had reached new The aims of MWCD are:
peaks and considerable levels of maturity in • To provide market facilities, for the milk producer
their savings and lending activities. The through cooperatives organized for the purpose.
savings were growing steadily and they were • Reasonable remunerative price to the milk produced on
always recording more than 97 per cent quality basis.
recovery consistently for ten years. As the • To provide hygienic milk and its products to the
eligibility to the size of loans increased the consumers.
women were exploring the options for • The MWCD has assured a new dimension as a powerful
strategy for rural development, creating a New Hope for
productive investment. Around the same time
growth with social justice, generating employment and
the interest rates were falling and credit income opportunities to thousand of rural producers.
absorption measured in terms of idle cash • To increase the milk production through the application
available with these cooperatives was as high of modern technology.
as 6 to 8%. Coupled with continuous drought • To increase the number of milch animals and to
for almost four years the rural producers in encourage new persons to become the members of the
and around Mulkanoor were looking for other society.
options to derive additional income. This • To expand the area of operation by increasing the
prompted active consideration of promoting a number of societies
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

women’s cooperative milk producers dairy project. Dairying as an activity was selected as it is an activity
which most rural people are capable of managing.
Based on this expressed need for alternative supplementary income CDF with the technical help of
National Dairy Development Board conducted a series of surveys. The surveys were conducted to find
out the production potential and marketable surplus in villages and market demand in the nearby cities
Page | 53
like Warangal. In these surveys it was found that in 72 villages around Mulkanoor there was at least
14,000 litres per day marketable surplus while the demand in Warangal city was about 30,000 litres per
day. 60 – 70% of the total demand in Warangal City was being catered to by unorganized milk vendors.
Most consumers were unhappy with the quality of milk being supplied. Looking at this potential, a
processing plant with a capacity of 25 TLPD expandable to 50 TLPD was planned.
They approached, Mulkanoor Primary BOX-3

Agricultural Cooperative Society (a leading The objectives of MWCD are:
agriculture cooperative in India, promoted in • Procurement of milk from the milk producers
1956) has accepted to support the promotion situated within the control of units.
of our dairy plant. The National Dairy • To provide good market for the rural unit
Development Board (NDDB) has also agreed producers and develop economic strength in the
to extend their technical support. The rural area.
Mulkanoor Cooperative Rural Bank (MCRB) • Supply of fresh and quality milk to Karimnagar,
has taken the responsibility of supervising the Warangal, Medak and Adilabad districts of
construction of the building and installation of Andhra Pradesh at a reasonable price.
machinery of the plant. Thus the Mulkanoor • To avoid the distance and inconvenience of
consumers.
Women's Dairy was established and our
• To development entrepreneurship.
dreams became a reality in 2002. The plant
was expanded to 50TLPD in the year 2007.
While construction and initial groundwork was started in Jan’ 2000, by putting in place a spearhead
project management team, the actual operations of the dairy began in Aug’ 2002. With several problems
like obtaining legal clearances under Milk and Milk Products Order, Pollution Control Board, delays in
construction and erection in machinery the project took almost two and a half years to be completely
ready for operation. However, this period was effectively used to build the capacities of women, their
leaders and the staff which served as useful investment for the future. All along the women who had
invested the share capital much before and waiting in anticipation were patient and were with the
promoting organization CDF.
But once the operations started all estimates and financial projections made before the operations were far
out beaten and it began registering surplus from the first year itself. Both physical and financial
performance of the initiative is way above the estimates made initially. Thus a new milestone was
established and a growth path carved out for the rural milk producers and women in this area.
PRODUCTS
MWCD launched “Swakrushi” is a brand name and all their products are marketed under this brand
name. They offer three categories of products viz., liquid milk, cream and value added products to their
clientele. Their products are marketed currently in cities like Warangal, Karimnagar, Medak, Adilabad
districts of AP, India
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Liquid milk – they offer variations of liquid milk to suit Chart- 1 Showing the Number of
specific needs of their clientele. Societies in the MWCD- Year Wise
Cream- they offer cream to their selected clientele when
the procurements are surplus. 2011-12 109
Value added products – In addition to liquid milk and 107
2010-11
cream, we offer value added products like butter milk,
Page | 54
Ghee. In the near future, they are going to launch ice- 2009-10 105
cream also to their customers.
Chart -1, indicates that, the Mulkanoor Women 2005-06 103
Cooperative Dairy has been increasing number of
2004-05 93
societies year by year, in the economic year 2002-03
there is only 68 societies, now it is reached 109 societies. 2002-03 68
It is interesting to note that, in rural areas the society
members and other believe and confidence on regular 0 50 100 150
income on dairy farm, there is a guaranty to get more
income on dairy farm, which is way people are
interesting to join this societies.
Members & Membership:
The Mulkanoor Women’s Chart-2 Showing the Number of Members in the MWCD – Year Wise
cooperative dairy as on today has
over 109 member cooperatives 25,000
which have a membership of over 20,000 18,984 19,616 20,118
20,000. The target initially was to 16,000
14,000
promote 72 cooperatives and 15,000
member-ship as 11thousand in 8,426
10,000
five years within a radius of 25
kms around Mulkanoor. The 5,000
average membership of a
0
cooperative is 160. A Primary
2002-03 2004-05 2005-06 2009-10 2010-11 2011-12
cooperative has a 10 member
board and 2 full time paid Chart -3 Showing the Milk Production (Ltrs.) in lakhs
employees for day to day milk
collection business. 72.2
77.68
80
64.34 62.5
The Chart -2 shows the number of 70
members in the MWCD. It is 60
clearly shows that there is a 50
continuous increase in the 40
24.24
membership of the society. In the 30
economic year 2002-03 there were
20
only 8,426 members and at present
10
(2011-12) it is reached to more
than 20,100 members in the 0
2002-03 2004-05 2005-06 2009-10 2011-12
society.
Chart -3 Indicates milk production in litres, as per chart the society starting year they collected 24.03
lakhs litres of milk, which as now grown up to 77.68 lakhs litres in the economic year 2011-12. We can
see there is a tremendous growth rate in milk production in between 2002-03 to 2011-12.
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

PROCUREMENT AND SALES:

Chart-4, Showing the Milk Procurement in Liters Per Day
At Mulkanoor Women’s Cooperative
30,000
Dairy the milk received on the first day
was 1400 litres and the first payment was 25,000 21,548
25,780
Rs.8.47 lakhs for milk supplied. The 20,000 17,630
Page | 55
payments are made fortnightly to 15,000 17,122
cooperatives and they in turn pay their 10,000 10,682
members in same way. At the peak of the
5,000
season i.e. in the month of October, the
supply of milk rose to 26000 litres per 0
2002-03 2004-05 2005-06 2009-10 2011-12
day (LPD) and the highest amount paid
by the union was Rs.88.66 lakhs.
Chart- 4 indicates that the milk procurement in the litres per day, as per chart it shows that there is a high
growth rate in 2004-05 year and there is little bit decline in 2005-06 after that it is increased highly at
present it reached to more than 25,700 litres per day.
PROCUREMENTS
The Mulkanoor Chart -5, Milk Sales Per Day in Ltrs.

Cooperative Dairy
procures milk two times a 70000
60056
day from the producers 60000
through our village level 50000
48915
primary milk 40000
cooperatives. The rate we 30000 25306
offer is one of the best 20000

19395
when compared to 10000
industry standards. The 0 4137
average milk procured by 2002-03 2004-05 2005-06 2009-10 2011-12
a cooperative is 200 LPD.
Average payment per fortnight is Rs.34,000 per cooperative Mulkanoor Women’s Cooperative Dairy,
when started had 67 Dairy cooperatives. Presently no. of cooperatives has raised to119, with it also the
procurements of milk has also improved.
Chart-5 showing that milk sales per day in litres, the increasing the population growth standard of living
condition in middle level people in cities will be impact on sales of milk sales, in the economic year 2002-
03 per day milk sales is 4,137 litres only, there is a tremendous growth rate in milk sales per day, it is
extended up to 60,056 litres per day milk sales.
SALES Chart -6 Showing the Share Capital in Lakhs
Sales have improved since 250
launching of the Mulkanoor 200

Women’s Cooperative Dairy 150.51 192.75
150
milk as “Swakrushi” brand in the
region. The sales in the nascent 100 65.52 110.97
stage were less and the marketing 50 22.67
persons had to work hard to 2.01 43.4
capture market. Due to the good 0
quality of the milk and the hard 2002-03 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Chart-7 Showing the Savings in Crores

work of the management Swakrushi
milk has become a household name 5.0 4.2
in the market. The main market 3.68
areas are in Karimnagar, 4.0 3.06
Hanumakonda, Warangal, Siddipet, 3.0 2.22
2.48
Godavarikani and other towns. Now

2.0 Page | 56
the demand is so high for 1.26
Swakrushi milk that the milk 1.0

0.11
procurements in the present day are 0.0
not enough. 2002-03 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12
Chart – 6 depicts that, share capital in lakhs, it indicates that there is a positive growth rate in the society
at present it reached to more than 1,92.75 lakh as per annual report 2011-12.
Chart – 7 reveals the savings in rupees( in crores), it is interesting note that, there is a regular increase in
saving year by year. In the initial economic year 2002-03 it was only 0.11 crores but now it reached to
more than 4.2 crores Rs..
ORGANGRAM
The Cooperative Dairy federation comprises of

women's dairy cooperative societies at each
village level. Each women dairy cooperative
society (WDC) is a separate entity in itself. It
maintains the procurement details of each
member in the society. Each village has a society
which is governed by 10 elected board members
and will have two full time paid employees. The
supply of feed and fodder, medicines and other
insurance and saving scheme services are
maintained by the WDC.
SERVICES
Mulkanoor Women's Cooperative Dairy provides many services for its members. By giving these services
the dairy also encourages members to put in more efforts for the production of the milk. The members
usually are the Dairy cooperative Society members, the milk producers who supply milk to the Dairy.
The services provided can be categorized into

Feed and Fodder Distribution: The Mulkanoor Women’s dairy provides the necessary cattle
feed for the milk producers to enhance the milk production. The feed and the fodder for cattle are
given to the milk producers and the amount for that is deducted from their bills. Also the
necessary Feed and Fodder development programs are conducted by the Dairy. This economic
year (2011-12) 24.41lack Rupees subsidy given for societies. While compared to last year it is
more than 0.16 lakh, and to encourage green grass the society also providing 50 per cent subsidy
on grass seeds. i.e. 10, 59,450 Rs., for feed and fodder for each bag 25/- Rs. subsidy covered 2,
05,575 Rs. are invested.
Medical services and First Aid for Cattle: The union conducted a series of training
programmes for the management, maintenance of accounts and records and primary health
maintenance of milch cattle. In every village there is a trained veterinary helper, 95 veterinary
medical assistants were trained in primary health care of milch cattle. In 2011-12 economic year
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

for milch cattle health the society invested 1,58,065 Rs. and also mineral mixture and others they
invested more than 5.22 lakhs.
Cattle Insurance: The milk producing cattle are covered under the Insurance cover by the
Mulkanoor dairy. This is to ensure financial safety of the milk producing members. In this
scheme the society 1216 milch cattle are covered, out of which 14 buffalos and 7 cows are died,
for this scheme 2, 08,000 Rs. are given to members.
Page | 57
Member Insurance: Mulkanoor Women's Cooperative Dairy also provides insurance cover to its
members from LIC of India. The present economic year (2011-12) 19, 70,000 Rs. are given to
passing away members, in which 15, 20,000 for natural death members each one 20,000 Rs. and
reaming 4, 50,000 Rs. given for accident death members, each one 50,000 Rs.
Artificial Insemination Programs: Mulkanoor Women's Dairy in collaboration with India Gen
(a subsidiary of NDDB) conducts the Artificial Insemination program for the members. These
programs help the members in producing good offspring for cattle and enhance milk production.
In this scheme the society invested 4,96,350 Rs. in the economic year i.e., 2011-12.
Netherlands “Robo Bank Foundation” sponsored donation Rs. 1,27,04,962, for providing
Artificial Insemination Services, Cattle Insurance, Medical Services and First Aid for Cattle,
increase the milk production etc., with the help of this found the dairy established 10 cattle
medical centres, these centres have been providing Artificial Insemination, medical services and
first aid for cattle etc.,
SUCCESS FEATURES OF MULKANOOR DAIRY
The design strategy is followed by the dairy management is the key to success for Mulkanoor Dairy. The
key design features that made a small beginning such huge success are:
Ceiling on the procurement distance: By keeping a BOX-4

limit of 25 Kms on the maximum distance of the village Success Case Studies of Buffalos Milk
where milk is to be procured from the dairy, we have Suppliers:
ensured lowest possible cost per litre of procurement.
Target on Smaller cities: We are able to capture very V. Suramma hails from
good market share by concentrating on mid sized cities Kanukulagidda village, Karimnagar
and smaller municipalities around Mulkanoor like district member in MWCD, with the
Warangal , Siddipet, Karimnagar, Mancherial and help of 7 cows, she supplied 16,000
Godavari Khani. liters in the economic year 2011-12
Initial Product portfolio: A product portfolio limiting and she got around 30,000 Rs.
to marketing just milk, cream and buttermilk helped us average monthly.
ensure daily money inflows back from the market easing
out working capital requirement. E.Rama belongs to
Local Human Resource: The staff is employed from Vangaramayiahpalli village
within the Union villages resulting in less resource cost Karimnagar district member in
per litre compared to industry standards MWCD, having 10 cows, she
Ensuring higher stakes of members: We have supplied 11,445 liters in the
institutionalized patronage linked compulsory economic year 2011-12 and she got
development deposits at the rate of 5% of every milk bill around 32,000 Rs. average monthly.
that the member realizes
Systematic institution building process: Institution development and capacity building of the
members was taken up systematically for a period of 18 months before the launch of dairy.
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Minimum performance criteria for members BOX-5

and leaders: Standards for minimum performance
of members and leaders were set and performance Success Case Studies Cows Milk
is being measured accordingly. Suppliers:
Surplus Distribution: The Surplus distribution is
done to the members on the basis of total G.Padma hails from Tatikayala village,Page | 58
transactions with the cooperative. Warangal district member in MWCD,
Confidence among the members for the sustainable with the help of 20 buffalos she supplied
growth of the income – Rs. 25,000/- and above, 14,214 liters in the economic year 2011-
insurance for milch animals - for animal 10,000/- 12 and she got more than 38,000 rupees
and Janasri Bheema Yojana for members Rs. average monthly.
20,000/- and Scholarships to poor students who are
belong to family member of the society, Supply of
Syd.Nowseen belongs to Rayagodem
inputs with subsidy 50% and Maintaining the
village Warangal district member in
equality as per international standards ISO
MWCD, having 21 buffalos she
9001:2000.
supplied 11,445 liters in the economic
Supply of milk to the consumer 24hrs.
year 2011-12 and she got around 32,000
Wooden boiler machines are using to decrease the
Rs. average monthly.
diesel cost (Expenditure will be reduced to the
extent of 50%).
CONCLUSION
Today the Mulkanoor cooperative society is having 20,118 members, 109 societies, 68 employees (in the
economic year 2011-12 annual report). Thus, Mulkanoor cooperative society is the role model in the
country and there is need of sincere efforts to strengthen the cooperative societies in India on the same
line, if we are concern to meet the demand of food, cloth, shelter and employment to our increasing
population.
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Milk Production Under Different Agro-Climatic Regions In Semi-Arid Regions”, Indian J Agril
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Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Jithendrakumar, D.S., 1990, “Performance of Dairy Cooperatives and Their Impact On Milk Production,
Income and Employment In Chitoor District (A.P.)”, M.Sc. (Agri) Thesis, Univ. Agric. Sci.,
Dharwad.
Kale, N.K., Tilekar, S.N., Borude, S.G. and Hinge, B.J., 2000, “ An economic enquiry in to working of
dairy cooperatives in coastal area of Maharashtra”, Indian Coop Rev., 38(4)
Kulkarni, M.B., 1979, “Collection of Milk: Some Lacunae and Remedies”, Dairy Guide 1(10): 31-34.
Page | 59
Mattigatti, R.M., 1990, “Performance of Milk Producers Cooperative Societies and Their Impact On
Dairy Farming In Dharwad District, Karnataka”, M.Sc. (Agri) Thesis, Univ. Agric. Sci., Dharwad.
Mulkanoor Women Cooperative Dairy Annual Reports Year wise 2002 -03 to 2011-12
Parthasarthy, I.V., 1975, “Economics of Milk Production and Trade Around Vijayawade, Krishna
District, andhra Pradesh”, Indian J Agril Econ., 30(3): 149.
Patil, B.L., 1991, “Performance of The KMF and Its Impact On dairy development in Karnataka an
economic analysis”, Ph.D. Thesis, Univ. Agric. Sci., Dharwad.
Ramachandran, T., 2004, “Rural Employment and Income Generation In Dairy Farming-A Case Study If
Kanyakumari District”, Indian J Agril Econ., 59(3): 643.
Reddy Y.V.R., 2000, “Impact of Dairying On Rural Farmers”, Mysore J Agric Sci, 13:340-342.
Sambasiva Rao, B., 1985, “Factors Affecting Milk Production. A study”, Indian J Agric Econ.,
11:169-174.
Sharma, B.L. and Sharma, R.C., 2004, “Contribution of Dairy and Crop Enterprises To The Economy of
The Rural Families In Semi-Arid Region of Rajasthan”, Indian J Agril Econ., 59(3): 608-609.
Thakur, D.S., 1996, “Impact of Dairy Development Through Milk Cooperatives: A Case Study of
Gujarat”, Indian J Agril Econ 41(3): 83-89.
ANNEXURE:
Table -1: Mulkanoor Women Cooperative Dairy (Swakrushi)
Business Details in 2011-12
Sl.No. Details 2011-12
1 Societies 109
2 Total members 20,118
3 Employees 68
4 Collection of milk in litres 77,67,987
5 Value of milk in Rs. 21,17,06,014
6 Average milk collection per day in litres 21,224
7 Value of milk in Rs. per day 5,78,432
8 Average rate of cow milk per liter in Rs. 31.86
9 Average rate of buffalo milk per liter in Rs. 19.65
10 Sale of milk in litres 219,80,423
11 Average sale of milk per day in litres 60,056
12 Value of milk in Rs. 63,50,05,968
13 Average milk value in Rs. Per day 17,34,989
Economic Status of Dairy 31-3-2012
1 Fixed asserts 7,11,30,690
2 Capital 9,85,60,574
3 Security deposits 5,63,472
4 Debt and advances 5,68,33,118
5 Present asserts 5,68,33,118
Total 23,09,65,948
Source : MWCD Aannual Report 2011-12
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Table – 3 Details of Feed and Fodder Distribution
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2011-12

Rice bran - - 18,74,396 17,00,200 17,75,150 21,88,010 26,54,025 42,56,390
Page | 60
Feeds 7,76,312 16,92,436 20,53,520 19,88,552 13,23,983 12,90,916 17,82,154 40,59,573
Grass 6,225 89,975 2,79,161 2,67,830 2,85,000 2,96,756 15,25,180 23,47,638
nuts
Medicines 35,647 2,28,765 5,06,548 1,95,850 3,46,213 22,419 14,34,846 16,37,174
Total 8,18,184 20,11,176 47,13,625 41,52,432 37,30,346 37,98,101 73,96,205 1,23,00,775
Source : MWCD Aannual Reports
Table – 4 Incomes and Expenditure of the Society

Total 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2011-12
income and
3,23,23,682 9,41,80,396 13,54,99,644 17,82,00,692 27,28,91,564 318951365 480311678 685511189
expenditure
Debt 3,31,24,041 3,42,47,968 3,60,70,384 1,77,58,442 1,33,93,823 9393823 9242747 13270359
Assets 2,89,68,379 3,26,31,005 3,54,14,095 3,58,76,417 4,23,64,071 48232911 63182594 92735645
Net 2,66,42,508 5,36,02,005 7,40,24,462 7,00,62,708 8,65,03,677 92788898 161377063 19275550
Assets
Table – 5: Cluster Wise Number of Societies Year Wise

Cluster 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2011-12
No.
1 11 11 11 12 12 15 15 14
2 13 14 16 19 18 13 14 15
3 12 14 14 15 18 14 15 14
4 12 17 21 25 26 15 15 17
5 17 23 14 17 17 14 19 17
6 - - 16 15 15 16 12 16
7 - - - - - 15 15 16
Total 67 79 92 103 106 102 105 109
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Table -6 Collection of Milk Year and Cluster Wise

Cluster 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2011-12
No.
1 3,71,556 8,56,024 10,00,923 9,13,351 8,78,120 1109875 1359224 1420667
2 4,41,302 7,37,861 9,84,058 7,80,007 6,41,949 620217 811128 950737
3 4,96,235 8,64,634 10,46,679 10,36,441 9,66,467 872325 1146643 1085476Page | 61
4 4,87,010 11,08,668 15,29,338 13,78,314 15,17,930 1099438 1036526 1034174
5 6,28,802 11,37,166 8,54,883 13,33,410 12,03,080 962547 1159019 1175700
6 - - 10,19,005 8,08,759 7,43,880 1339474 990982 1204114
7 - - - - - 730069 746534 897116
Total 24,24,905 47,06,652 64,34,936 62,50,282 59,51,326 6733945 7221192 77679884
Table – 7 Average Collection Cluster and Year Wise

Cluster 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2011-12
No.
1 1,636.81 2,339 2,742 2,502 2,406 3032 3724 3882
2 1,944.06 2,017 2,696 2,134 1,790 1695 2222 2598
3 2,186.06 2,321 2,868 2,840 2,782 2383 3141 2966
4 2,145.42 3,037 4,190 3,776 4,221 3004 2840 2826
5 2,770.05 3,062 2,342 3,653 3,296 2630 3175 3212
6 - - 2,792 2,216 2,038 3660 2636 3290
7 - - - - - 1995 2045 2450
Total 10,682.40 12,796 17,630 17,122 16,533 18399 19784 21224
Table – 8, Showing the Medicines, Feed, Fodder Distribution and Subsidy in Rs.
Kgs. Value in Rs. Subsidy in Rs.
Rice bran 4,34,350 42,56,390 2,05,575
Feeds 2,24,200 26,50,276 -
Grass nuts 1,15,900 14,09,297 -
Medicines 61,390 21,20,650 10,59,450
Cotton feeds 4,262 2,26,988 1,13,494
Mineral mixture 15,889 8,17,309 4,08,668
Injections (Tikalu) 679(Battles) 49,077 49,077
Others (related to
- 7,70,788 6,05,338
medicines)
Total - 1,23,00,774 24,41,602
Source: MWCD 10th annual report 2011-12
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Table – 9 Showing the Details of Highest Milk Suppliers in the MWCD 2011-12
Sl. Name of Village Supply of Milk bill Liter Daily Average Total
No. Member milk in in Rs. rate. supply milk bill in animals
Litres of Rs.
litres
Buffalo milk
Page | 62
1 G.Padma Tatikayala 14,214 4,63,564 33 39 38,360 20
2 Syd. Rayagodem 11,445 3,83,299 33 31 31,942 21
Nowseen
Cow milk
1 V.Suramma Kanukulagidda 16,000 3,50,967 22 44 29,247 7
2 E. Rama Vangaramayiah- 15,617 3,29,739 21 43 27,478 10
palli
Source : MWCD 10th annual report 2011-12
Vol: 4, No: 3. March, 2013 ISSN 2156-7506

Page | 63

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Vol: 4, No: 3. March, 2013 ISSN 2156-7506

VOLUME 4 I NUMBER 3 I MARCH, 2013 ISSN 2156-7506

International journal of Contemporary Business Studies

IJCBS is indexed & listed in:

One of the largest Research Databases of world Indexed in Proquest

Impact of Right Issues Announcement on

Determinants of Banks Performance: Viewing

Employee Induction and Orientation at Public

Performance of Women Cooperative Dairy - A

Impact of Right Issues Announcement on

Key Words: Abnormal Return, Event Study, Right Issue, Significant.

Our hypothesis for this study are

a) Company must be listed on Karachi Stock Exchange (KSE).

a) defining the event and event window(s)

b) measuring the stock’s return during the event period

E(Rit) = α + βRmt +eit ----------------------------------------------------(I)

ARit = Rit – E(Rit) ---------------------------------------------------(II)

where, ARit = Abnormal return for a stock “i” on day “t”.

CAAR(T1,T2 ) = ∑T2T1 AARt---------------------------------------------------(IV)

Table 1: AAR during event window

Day AAR T Statistics

Day CAAR T Statistics

Determinants of Banks Performance: Viewing

Key words: bank performance, internal determinants, external determinants, cognitive

2.1 Determinants of performance

2.1.1 The internal determinants

2.1.1.4 Credit quality Page | 16

2.1.1.7 Degree of diversification

2.1.1.8 Amount of bank deposits

2.1.1.10 The market share

2.1.2 The external determinants

2.1.2.1 The inflation

2.1.2.2 GDP growth

2.1.2.3 The tax

2.1.2.4 Market concentration

2.1.2.5 The maturity of the banking sector

2.1.2.6 The stock market Page | 20

2.1.2.7 The choice of a country

3.1 Methodological tools

3.2 Description of the empirical investigation

3.3 Presentation of the questionnaire

Table1: Adjacency matrix

Concept1 Concep2 …… Concept n

Concept2 L21 1 L2n

Concept n Ln1 Ln2 1

3.4 Proposal for modeling cognitive maps

3.5 The construction of cognitive maps

4. MATERIALS AND METHODS OF STRUCTURAL ANALYSIS

4.1 Overview of structural analysis method

4.2 Matrix and processing MICMAC method Page | 24

PRESENTATION OF VARIABLES LIST OF VARIABLES

MATRIX OF DIRECT INFLUENCES (MID)

Table 3 : Matrix of direct influences

Bank Deposits Amount

MATRIX OF DIRECT POTENTIAL INFLUENCES (MIDP)

Table 4: Matrix of potentiel direct influences

The influences scores are from 0 to 3:

0: No influence 1: Low 2: Average 3: Strong

Sum of rows and columns

N° VARIABLE TOTAL OF ROWS TOTAL OF COLUMNS

5. CONCLUSION AND IMPLICATIONS OF THE RESEARCH

Figure2: Cognitive mapping through the plan influences dependencies