Redefining Strategies For International Markets

REDEFINING STRATEGIES FOR
INTERNATIONAL MARKETS
Dr. Catherine Nirmala Rao

Ms. Dolan C. Banerjee
Redefining Strategies For International Markets
REDEFINING STRATEGIES FOR

INTERNATIONAL MARKETS
«
I I W
«
IB-DIGEST Publications
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is an integral part of quality education and the promotion of entrepreneurship
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businesses are the driving force behind the global economy and with
comprehensive networking the scenario is bound to get more complex. With
greater emphasis on Corporate Social Responsibility Initiatives educational
institutions are greatly benefitted through Corporate partnerships and knowledge sharing training and
internship programmes.
Commerce and management education is an important branch of education which should impart the
codified experiences of the business world and infuse business skills in the students. The education
that we provide today should be receptive to the needs of the corporate and the society. In order to
make our students employable, the teaching fraternity and industry experts need to amalgamate their
needs and expectation and provide a platform to the educational institution to assess whether the
knowledge and training provided by them is sufficient to meet the corporate demands and challenges.
Industry and academia interaction should be continuous and should be worked at with foresight and
vision to make our society a better place to live in.
The First International Conference on “Global Management Myopia - Redefining Cutting Edge
Strategies for International Markets” attempts to integrate global innovation with knowledge networks
B-DIGEST Publications and assimilate it into higher education. The challenges faced by the Corporates in the 21s1 century calls
Second Edition 2018 for wide ranging of all inclusive solutions for businesses to have resilience in the turbulent international
markets. The main objective of the two day conference is to bring the researchers, the practitioners,
ISBN:978-93-84734-58-9
Industry experts and academia under a common platform to analyse the current challenges causing
I'A management myopia which in turn will help to find out the new dimensions, explore contemporary
avenues and refine strategic outlook to reduce myopia in this competitive scenario. I congratulate the
Conference Coordinators of PG Commerce and all the organisers of the International Conference on
“Global Management Myopia” for choosing a contemporary topic for deliberation and debate, thus
providing an opportunity for the congruence of ideas which will widen our vision and focus.
Sr. Dr. M. Jcswina A.C.,

rf Principal
■I St. Agnes College (Autonomous)
If ;/
EMPLOYEE ENGAGEMENT AND ITS IMPACT ON
113-118
SI. No. Paper ID Title and Author's Name 17 IH-9
Page No. ORGANIZATIONAL GROWTH WITH SWITCH MODEL* Ms .
Banking Reshma Sultana P.H ** Mrs. Jesin John ***Dr.Irfan Mumtaz KS
1. IB-1 GOING GREEN OR GOING THROUGH GREEN - A STUDY Marketing

ON GREEN BANKING INITIATIVE OF SELECTED 1-6
AN EVALUATION OF THE DISTRIBUTOR MODEL FOR THE 119-127
BANKS*Dolan Champa Banerjee,**Mahammad Thauseef P. 17. IM-1
MARKETING OF LPG PRODUCTS BY MNCS - A CASE STUDY
2. IB-2 ANALYSIS OF CUSTOMER SATISFACTION IN MODERN OF TOTAL GAZ *Dr. Catherine Nirmala Rao., **Deepak
BANKING SERVICES :A STUDY WITH REFERENCE TO 7-15 Sequeira
PUTTUR TALUK DAKSHINA KANNADA*Prof. Basavarajeshwari
Diddimani **Ms. B.B. Hannath,***Ms. Amrutha.P. 17. IM-2 GREEN MARKETING: AWARENESS AND ITS INFLUENCE 128-138
ON BUYING BEHAVIOR OF CONSUMERS - A STUDY WITH
3. IB-3 CHANGING PERCEPTION OF THE CUSTOMERS OF REFERENCE TO DAKSHINA KANNADA DISTRICT* Mr. Thilak
16-22
HOUSING FINANCE*Harish, **Dr. Yathish Kumar Gowda, **Ms. Ashwitha Shetty
4. IB-4 18. IM-3 A DESCRIPTIVE STUDY ON GREEN MARKETING:

ROLE OF CBS IN BRINGING A SOCIAL CHANGE: BANKERS' 23-28 139-142
OPPORTUNITIES AND CHALLENGES*Ms. Kavyashree. K, **Ms.
PERSPECI iVE*Malathy.K. ,**Dr. Subhashinisrivatsa
Deekshithakumari _____
5. IB-5 A COMPARATIVE ANALYSIS OF MICRO INSURANCE IN 29-41
19. IM-4 INFLUENCE OF MALL CULTURE ON CONSUMER
INDIA AND SOUTH AFRICA: A DESCRIPTIVE 143-149
BEHAVIOUR AND BUYING DECISIONS-A STUDY WITH
STUDY*Vidyadhara Hegde S, **Dr. Subhashini Srivatsa,
SPECIAL REFERENCE TO MANGALORE CITY*Yathish Kumar,
6. IB-6 TRENDS IN BANKING INDUSTRY *Rakshashenoy K **Niveditha
42-47
7. IB-7 BRAND LOYALTY - TRUTH BUILDS TRUST*Geetha Prabhu
150-156
E- BANKING: PERCEPTION OF BANKERS TOWARDS 20. IM-5
48-53
INTERNET BANKING*Swathi P K, **Meenakshi S 157-170
21. IM-6 CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF
8. IB-8 BANKS AND RURAL DEVELOPMENT *Dr. Renukak , M C F*Prof. Harish Acharya P.
54-61
**Mr.Ravichandra,
Finance
Human Resource RESEARCH AND DEVELOPMENT IN LARGE SOFTWARE
22. IF-1 171-178
9. IH-1 ISSUES AND CHALLENGES IN THE HUMAN CAPITAL COMPANIES AND MULTIPLE ORIENTATIONS- A CASE
62-66 STUDY OF INFOSY*Sonia Viswam _____________
MANAGEMENT OF SOCIAL ENTERPRISES IN INDIA
*Mr.Ramakrishna Shetty, **Ms.Meghashree
23. IF-2 A STUDY ON INVESTMENT AVENUES AVAILABLE TO 179-184
10. IH-2
HUMAN RESOURCE PRACTICES IN SMALL SCALE RETAIL INVESTORS WITH REFERENCE TO KARNATAKA
67-74
INDUSTRIES(WITH SPECIAL REFERENCE TO DAVANGERE STATE*Mahammad Irshad M, **Dr. Chandrashekar R.
DISTRICT)*Mrs.Shwetha H S , **Dr.B.S. Subramanya,
24 IF-3 A STUDY ON MERGERS AND ACQUISITIONS IN THE 185-189
11. IH-3 AN OVERVIEW OF EMPLOYEES ATTRITION AND INDIAN SCENARIO*Michelle Pinto, **Meghana Pallavi Salins,
75-85
RETENTION STRATEGY *Vidyabhat, ** ShreyaShetty ***Disha Puthran
12. General
IH-4 ACCULTURATION AMONG FISHERWOMEN CLAN
*Dr. Preethikeerthidsouza 86-90
GLOBAL ISSUES AND CHALLENGES WITH REGARD TO E- 190-195
25. IG-1 GOVERNANCE AND E-BUSINESS**Rakshitha Shetty,
13. IH-5
INDUSTRIAL RELATIONS - CHALLENGES AND GROWTH **Akshatha Kullal, ***Rajath Kumar
*Ramyashree A B,**Viswesh Krishnan, ***Suresh Kumar B,
91-97
DYNAMIC CAPABILITIES OF AN ENTREPRENEURSHIP IN 196-200
14. IH-6 26. IG-2 THE PRESENT SCENARIO*Michael L Santhumayor, **Cassin
COFFEE PLANTATION AND ITS IMPACT ON CULTURAL
98-102
DIVERSITY OF COORG*Avinash. V, **Harshitha C.T. Rodrigues***Wilma Fernandes
15. IH-7 GAMIFKA-nON IN RECRUITEMENT OF HUMAN RESOURCE ENTREPRENEURIAL CHALLENGES IN THE GLOBAL 201-205
103-104 27. IG-3
Dr. D. Jams Bibiyana, **S.Sarala lakshmi PERSPECTIVE*Ms. Manjula D, **Ms. Ashwitha, ***Ms. Akshatha
IH-8 5.
16 CULTURAL DIVERSITY AND ITS IMPACT IN WORK 105-112 CLOUD COMPUTING- ISSUES AND CHALLENGES*Mr. Nelson 206-209
PLACE*Jemfer Doreen Barboza, **Sanjeevan F. 28. IG-4
Marwin Fernandes _____________
I
29. IG-5
OVERVIEW ON ASEAN INDIA RELATION - IMPACT ON
2l0-222
INDIAN ECONOMYMswini T, **Amith 5 M.
GOING GREEN - A STUDY ON GREEN BANKING INITIATIVE OF
30. .IG-6 THE IMPACT OF SHARING ECONOMY ON SOCIAL WELL
223-230 SELECTED BANKS
BEING.*Prof. Karthik Raj K, **Supreetha
*Dolan Champa Banerjee & **Mahammad ThauseefP
31. IG-7 Assistant Professors Centre for Post Graduate and Research,
CHALLENGES FACED BY RURAL WOMEN ENTREPRENEURS
IN INDIA*K. Umeshshetty 231-236
St. Agnes College, Mangalore
Introduction
Scientist discovered that Global warming is real and having a dangerous impact on the planet. Destruction
of forests for agricultural, industrial and urban use and extreme industrial production processes account
for a considerable share of the overall pollution throughout the world which causes air pollutants, discharges
of waste water and the generation of waste. Hence extreme deforestation and industrial release results to
an increase in greenhouse gases (such as carbon dioxide) around earth’s atmosphere. These green gases
traps and absorbs atmospheric heat and ultimately causes global warming which results in increase in
earth’s surface temperature.
Climate change is happening in historically fast pace and hence the future appear to be bleak. If measures
are not taken today, we cannot recognize the world tomorrow. The disastrous impact of recent floods,
droughts, storms and excessive heat around the world, motivate us to think seriously and to do whatever
we can to address the problem of global warming (IRDBT, 2014). The Shepard Glacier Montana, Boulder
Glacier Montana, Qori Kalis Glacier Peru and Muir Glacier Alaska are melting at a rapid speed (Discovery
Channel). This can lead to perilous situation in the following decades. Hence today the world is exclaiming
about Going Green. It is a wider concept and is implied to every section of the society. Banking is not an
exception. According to Indian Banks Association (IB A, 2014) “Green Bank is like a normal bank, which
considers all the social and environmental / ecological factors with an aim to protect the environment and
conserve natural resources”.
Literature Review
Bahl, Sarita (2012) conducted an empirical study on “Green Banking - The new strategic imperative”
tried to find out the most significant strategies while going ahead with green banking by using Garrett’s
ranking technique. Researcher found that Carbon footprint reduction by Green building had been given top
priority in green banking strategies and green banking financial products has also been given due weightage.
However, Paper less banking and using mass transportation system has been rated low as green banking
strategies.
Chaurasia (2014) in his paper “Green Banking practices in Indian Banks” highlighted the benefits,
confronting challenges, strategic aspects of green banking and status of Indian banks regarding green
Banking adoption. The study found that there has not been much initiative in this regard by the banks in
India. Investigator suggested that bank should go green and play a proactive role to take ecological aspects
as part of their lending principle, which would force industries to go for mandated investment for
environmental management, use of appropriate technologies and management systems.
Objectives
1.To focus on green banking standards prescribed by RBI.
2. To understand bank’s ideology and policy about Green banking.
3. To suggest some measures to adopt Green initiatives in banks.
F Redefining Strategies For
International Markets Redefining Strategies For International Markets
n
6.0 Data Analysis And Interpretation
Methodology for the survey were bank personnel.
6.1 Selected Banks And Their Profile
they werebriefedatouUhe purposeofdie study. Questionnaire was prepared and questitms were
d to hem DWeren. banks were suêyed according to ,he prescribed t,me g.ven by them. Hence a Table: 1
field research was done through personal and group interview. As the study was a ngtd survey so fact Name of Head- Type Year of Branches Customers
findings enquiries were executed through percentage methods. Some significant facts have been observed the Bank Quarter establishment
from this study. This research paper is also based on secondary data for finalization ofviews and opinions SBI Mumbai Public sector 2nd June 1806 14000 All types
which has been sourced from published literature. Corporation Mangalore Public sector 12,h March 2200 All types
Discussion Bank 1906
Climate change due to natural reasons is acceptable but climate change because ofman- made developments IDBI Mumbai Government July 1964 1853 Urban and business
is like monsters behind the doors. Development helps mankind to grow in the short run but in the long run owned Bank class
generations to come have to suffer. Recently we observed the newsflash about the pollution level of our Central Bank Mumbai Government 21s' 4741 Domestic and
own ca pital Delhi and the extreme climate which many parts of our country faced. Hence every sector has oflndia owned Bank December international customers
to come forward and join hands and should think and plan different strategies to save Earth so that generations Public company 1911
to come can get a better world. Saraswat Public sector 14 September 267
Mumbai Urban farmer,
Most ofthe economy cannot function without banks. It is found that prior to 2011 less than 35% of the Indian Bank 1918 Cooperative businesses
population had bank accounts. After 2011 to 2014 it roused to 53% which means that 175 million became
Indian Chennai, TN 10"' February 3700 Fisherman (Wholesaler
account holder in India. On August 15,2014, Narendra Modi announced his mission to make banking facilities
Overseas 1937 and Retailer)
available to all households in India. Within six months over 11.5 Crore bank accounts were opened (1.5
Crore accounts afterjust a week), an achievement that apparently made its way into the Guinness Book of Bank
World records. A little later as ofApril 20, 2016 the numbers appear to speak for themselves. Nearly 220 Source: Actual data survey
million accounts have been opened so far, with the total deposits amounting to a little over 36,700 Crore State Bank of India traces its ancestry to British India, through the Imperial Bank oflndia, to the founding,
rupees. Hence, the result shows that everyday banking transaction really speaks as they have to do so many in 1806, of the Bank of Calcutta, making it the oldest commercial bank in Indian Subcontinent. Bank of
things. Lot of things increases lot of paper work and also adds lot offuel to Global warming. Therefore, the Madras merged into the other two “presidency banks” in British India, Bank of Calcutta and Bank of Bombay,
banking sector can play different roles to reduce the carbon footprints and also can create a sense ofawareness to form the Imperial Bank oflndia, which in turn became the State Bank oflndia in 1955. Government of
about “Green Banking” and its usage in day to day life among general public. India owned the Imperial Bank oflndia in 1955, with Reserve Bank oflndia (India’s Central Bank) taking
Green Banking Standards by RBI a 60% stake, and renamed it the State Bank oflndia. In 2008, the government took over the stake held by
The Reserve bank oflndia is India’s central banking institution, which controls the monetary policy of the the Reserve Bank oflndia.
Indian rupee. It commenced its operation on Is' April 1935 during the British rule in accordance with the Corporation Bank is a public sector banking company headquartered in Mangalore, India. The bank has
provision of the Reserve Bank ofIndia Act. It is an independent apex monetary authority which regulates pan-India presence with 8,000 functional units comprising 2200 branches, 1800+ ATMs and 3,000 branchless
banks and provides important financial services like storing of foreign exchange reserves; control of banking units as of 30 January 2015. The need to start this bank was felt because there was no such facility
inflation, monetary policy reports (Wikipedia). According to RBI (IRDBT, 2014), green banking is to at Udupi, an important trading centre next to Mangalore in South Canara district.
“T Processe^ Physical infrastructure and IT infrastructure as effective and efficient as IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial
possible, with zero or minimal impact on the environment. They had introduced green rating standards for Development Bank of India, headquartered in Mumbai, India. It was established in 1964 by an Act of
Parliament to provide credit and other financial facilities for the development of the fledgling Indian
reftirbishment and reuse industry. It is currently 10th largest development bank in the world in terms of reach, with 3350 ATMs,
material being used in their building furnishings and in the
printers, networks, etc. systems used by them like servers, computers, 1853 branches, including one overseas branch at Dubai, and 1382 centers. It is one of 27 commercial
banks owned by the Government oflndia. The Bank has an aggregate balance sheet size of 1NR 3.74 trillion
Sustainable development and preservation of environment
planet Earth and that can be done with 3Rs red uce, reu are now recognised globally to protect our as on 31 March 2016.
RBI (2013) se and recycle said by Anand Sinha Deputy Governor, Central Bank of India, a government-owned bank, is one of the oldest and largest commercial banks in
II 3
Redefining Strategies For International Markets Redefining Strategies For International Markets
1
Table: 3
ach of the banks has 20 per cent. Recently it has also opened a representative office at Banks Workshop LEED certified Environment audit Environment
cent stake and e
Nairobi in Kenya. organised green building management impact assessment
Saraswat Bank is an urban co-operative banking institution based in Maharashtra, India and operating as
a co-operative bank since 1918.1n 1988, the Bank was conferred with “Scheduled” status by Reserve
O Yes No Yes Yes
Bank of India The Bank is the first co-operative bank to provide Merchant Banking services. The Bank got
a permanent license to deal in foreign exchange in 1978. Presently the Bank is having correspondent
relationship in 45 countries covering 9 currencies with over 125 banks. In 1992, the Bank completed 75
m Corporation Bank
|©lDBlBANI<|i
Yes No Yes Yes
years. Platinum Jubilee Celebrations were inaugurated on 14 Septembei 1992. No No No No

Indian Overseas Bank with about 3700 domestic branches, including 1150 branches in Tamil Nadu, 3
extension counters, and eight branches and offices overseas as of 30 September 2014. Indian Overseas No No No No
Bank has an ISO certified in-house Information Technology department, which had developed the software
Saraswat No No No
that its branches used to provide online banking to customers earlier. The bank has achieved 100% 40 Bank No
networking status as well as 100% CBS status for its branches. IOB also has a network of about 3300
ATMs all over India. The bank has taken a late leap towards internet-enabled banking and data analytics No No No No
Indian Overseas Bank
by implementing Infosys Finacle’s latest rack of software executed by American technology company HPE
and became the first public sector bank to get the latest digital banking software, Finacle 10 suite package
from Infosys. Source: Actual data survey
(Source: Wikipedia) LEED-certified buildings are with lower operating costs, better indoor environmental quality and are
more attractive to a growing group of corporate, public and individual buyers. A recently published, peer-
6.2 Bank’s Ideology And Policy About Green Banking
reviewed study has demonstrated that LEED (Leadership in Energy and Environmental Design) has a
Table: 2 consistent, strong signaling affect and also green signaling mechanisms, specifically related to the
Banks Controlled ATM in Solar power Cash deposit Online bill certification itself. 61% of corporate leaders believe that sustainability leads to market differentiation
usage of energy Mangalore ATMs system payment and improved financial performance.
O 50% places More than 60 Yes Yes Yes

7.0 Findings
Most of the banks were established before independence except IDBI.

Few places More than 50 No Yes Almost all the banks are headquartered in Mumbai except Corporation bank and Indian Overseas
Yes
Bank.
No 05 No No Yes Most of the banks did not know the concept of Green Banking and have not attended any
Him seminar or workshop related to the same.
Central Bank ol India
No 05 No Yes Yes Controlled usage of energy is not been adopted by all the banks.
Saraswat No
40 Bank 04 No Most of the banks do not have solar power ATMs.
Yes Yes
Most of the banks do have cash deposit system.
^ Indian Overseas Back 20% usage 02 No Planning stage Yes
controlled All the banks own online bill payment and net banking facilities.
None of the banks have LEED certified Green buildings

Source: Actual data survey
Most of the banks do not go with environment audit management and environment impact
assessment
4
5
"I
Redefining Strategies For
ANALYSIS OF CUSTOMER SATISFACTION IN MODERN BANKING
Suggestions:
initiative among SERVICESrA STUDY WITH REFERENCE TO PUTTUR TALUK, DAKSHINA
• Banks should organise workshop or seminars in order to promote gree
KANNADA
stakeholders. *Prof Basavarajeshwari Diddimani
reen.
. Banks should By to install solar power based energy saving ATM machines to go g * Assistant Professor, Government First Grade College, Uppinangady
toward online transactions banks should abolish transact,oral **Ms. B.B. Hannath Amrutha.P.
• In order to promote customers
F'M.Com Government First Grade College, Uppinangady
charges.
. RBI should make environmental audit of each banks in order to reach the desired objective of Introduction :
green banking. Banking has occupied a significant status in the context of economic growth of our country. The origin of
• Central government should provide free funding for the banks which goes with LEED certified banking in India is very ancient. Historians say that banking activities were prevalence during the Vedic
Green building. period between 2000 and 1400 B.C. The post-independence period had witnessed a great change of the
Indian banking system. Since independence, Indian banking has made a significant progress and is not
• Banks should be ranked based on green banking parameter .i.e. Green Ranking.
lagging behind it has started providing various services such as internet banking, Electronic fund transfer,
Conclusion debit cards, credit cards, mobile banking etc. Commercial banks, cooperative banks have been in existence
The reasons for Global warming today are the excessive emission of carbon dioxide (C02) from various for the past several decades and Regional Rural Banks came into existence in the middle ofseventies. The
sources. Hence precautions are a must to save both man and nature against this threat. As the banking sector commercial banks in India comprise of both public sector as well as private sector banks. There are
influences economic growth hence they play an important role in environmental sustainability. totally 22 public sector banks and 21 private sector banks are functioning in the country presently. The
banking system occupies an important place in a national economy and forms the core of money market in
The outcome of the survey indicates that the banks in Mangalore have a long way to go towards green
a developing country.
banking. The local authorities can play an important role in urging the banks to go Green. They can ask the
bank to initiate measures according to the guidelines of RBI to reduce the green house effects. Banks can Customer Satisfaction and Service Quality:
initiate in spreading awareness for its vast user to go paperless as much as possible. The ease of operation Banking industry across the globe recognized the importance of customer satisfaction and of developing
of ATM and depositing kiosks should be explained to the users and encourage them to remove the still and maintaining enduring relationship with their customer. Customer satisfaction has been considered as
existing mental blocks of going digital for some of the users who are not always ready for changes. the essence of success in today’s highly competitive banking industry. Quality customer service and
satisfaction are recognized as the most important factors to the bank for customer acquisition and retention.
References
Service quality is considered as one of the critical success factor that influence the competitiveness of an
Institute of Development and Research in Banking Technology.(2014, 03 04). Publications: IDRBT. organization. A bank can differentiate itself from others by providing high quality services.
Retrieved from IDRBT: http://www.idrbt.ac.in/publications/Frameworks/Green%20Banking%2
0Framework%20(2013).pdf Need for the study:
This paper presents an original customer satisfaction survey in the banking sector. This study will help us
Indian Banks Association.(2014,03 3).Green Banking Innovations; Indian Banks’Association. Retrieved
to examine the satisfaction of customers in modem banking services. The study will show the awareness of
from The Indian Banker: http://www.theindianbanker.co.in/html/sto 5.htm
customers about the various services of banks.
Competitive advantage on a wanning planet, Harvard business Review, 85,2007
Literature review
Banks and the environment, Canadian Bankers Association
Riffai, Grant, & Edgar, (2012) reveals that there was investigation of factors that have effect on understand
LEED certificates: http:// www.usgbc.org/leed and use the electronic banking services. It has been proven that more the awareness ofservices lead to
more use of modem banking. Finding revealed that internet banking services are easy to use, obvious easy
to understand hence helped to shift from retail banking.
PayamHanafizadeh, (2012) points out the perception of the individual to adopt the modem banking or not
depend upon the trust the individual have on the features of the modem banking technology.
Kadir, Rahmani, &Masina, (2011) pointed out the customer satisfaction is much vital in internet based
companies. Good quality products and services are demanded by customers and if they don‘t get the
■I
desired services they can easily move away towards another option. All the online businesses are compelled Table 1: Age group of respondents
to isolate and focus customer's need for their satisfaction. Age No. of Respondents Percentage
Premalatha & Sundaram (2012) describe that this study will provide the basic < 20-30 15 30
banking services and prove that modem banking services is useful for banks in erni ‘ 30-40 16 32
Banking also improved Due to the adaptation of modem banking elements. So, mo em y 40-50 11 22
cause of customer motivation and satisfaction due tosecurity, reliability and speedy transactions of modem 50 & above 8 16
banking services.
Total 50 100
Khan (2010) indicates the feature of reliability defines providing the accurate and promised service at all
times of transaction. Users of electronic banking want to obtain the right quality and right quantity of Table 2: Gender wise classification of respondents
service at all times, as it is promised by the banks. In addition to this, customers have a preference to Gender No. of Respondents Percentage
accurate billing of their accounts. Male 27 54
According to Suda and Sarunya, customer satisfaction does not only express a happy customer, but rather Female 23 46
complex than that ref. [3]. It is actually a term most widely used in the business and commerce industry. It Total 50 100
is a business term explaining about a measurement of the kind of products and services provided by a
Table 3: Education qualification of respondents
company to meet its customer’sexpectation.
Education qualification No. of Respondents Percentage
Objectives: S.S.L.C 6 12
• To know the awareness of the customer about the modem banking services.
P.U 10 20
• To analyze the customer satisfaction in various banking services. Under graduation 15 30
• To find the relationship between service quality and customer satisfaction. Post graduation 12 24
Research Methodology: Others 7 14
The study is analytical in nature. For the purpose of study both primary data and secondary data has been Total 50 100
collected. The convenience sampling method is used to collect primary data by taking respondents from
Puttur TQ D.K. 50 respondents consist of male and female were considered. Secondary data is from the Table 4: Locality of respondents
published research papers, books and from internet. The data collected from the sample respondents on Locality No. of Respondents Percentage
various aspects has been organized in the tabular form. Such organized data has been analyzed with the Urban 6 12
coiclusiofrem aVerageS 3nd PerCentageS f°r e3Sy underslandi"g ^ê data and for drawing meaningful Semi urban 15 30
Rural 29 58
Limitations: Total 50 100
1. The sample size limited only to 50 respondents from Puttur TQ D.K
2. Time was limited to conduct a detail study. Table5: Type of customers
Type of customers No. of Respondents Percentage
3. The sample size was confined to only 50 respondents therefore it is
very difficult to give accurate Employees 16 32
judgment on the basis of this limited sample.
Business man 12 24
Data Analysis And Interpretation
Students 15 30
PART-1
Others 7 14
PART-1 ofthe questionnaire consist ofthe demographic profile Total 50 100
are customer with and type of accounts are chosen for the study of the / CUSt°mCr ,type of bank they
II 8
9
Table 6: Type of bank
Type of bank No. of Respondents Percentage AWARENESS: Highly Aware Slightly Aware Neutral Not Aware
Private bank 22 44 ATM No. of Respondents 40 5 5 0
Nationalized 28 56 Percentage 80 10 10 0
Total 50 100 Mobile Banking No. of Respondents 30 9 7 4
Table7: Type of account Percentage 60 18 14 8

Type of account No. of Respondents Percentage Credit cards No. of Respondents 32 '7 5 6
S.B A/c 40 80 Percentage 64 14 10 12
Current A/c 10 20 EFT No. of Respondents 25 10 10 5
R.DA/c 0 0
Percentage 50 20 20 10
F.DA/c 0 0
Tele Banking No. of Respondents 15 5 20 10
Any other 0 0
Total 50 100
Point of Sale-POS No. of Respondents 13 10 12 15
PART -2 Percentage 26 20 24 30
Table 1: Users of Internet banking D-Mat Accounts No. of Respondents 10 12 15 13
Criteria No. of Respondents Percentage Percentage 20 24 30 26
Yes 35 70 Internet Banking No. of Respondents 12 15 13 10
No 15 30
Total 50 100
Table3: Awareness of bank services
Table 1: The study shows that 70% ofthe respondents are using internet banking and 30% of the respondents
are not using internet banking. Thus the study reveals that majority of the respondents are using internet Table 3 : The study reveals that 80% of respondents are highly aware of ATM services provided by bank
banking. and 0% of respondents are not aware on ATM service. So majority of respondents aware about ATM.
Table 2 : Years of using internet banking The study shows that 60% of respondents are highly aware of mobile banking service and 8% ofrespondents
No. of years No. of Respondents Percentage are not aware of that service. So there are still respondents who are not aware of mobile banking.
From 6 month 7 14 It is revealed that 64% of respondents are highly aware of credit card facilities that are available in the
6 month-1 year 10 20 bank and 10% of respondents are in neutral in the aware of that service.
1 -2 year 11 22 The study reveals that 50% of respondents are highly aware on EFT service of bank and only 10% of
2 years and more 7 14 respondents are not aware of that service.
Total 50 100 It is found that 40% of respondents are in neutral in their opinion on awareness on tele banking service
Table 2: From the study it is found that 22% of the respondents are using internet banking from 2 years and provided by bank and 30% of respondents are highly aware of tele banking service.
20% of the respondents from 6 month to one year .Thus the study shows that majority of the respondents are The study reveals that 30% of respondents are not aware of POS-point Of Sale service provided by bank
using internet banking from 2 years.
and only 20% of respondents are slightly aware of that service.
It is found that 30% of respondents are in neutral on awareness of D-Mat Account service provided by
bank and only 20% of respondents are highly aware of that service provided by bank.
II." ■■■■■■ ■ ■ B B B ■BBBBBBBBBHUIBSaUB B W *

From the study its revealed that 30% of respondents are highly aware of internet banking service provided
No. of Respondents 2 8 15
by bank and 20% of respondents are not aware of internet banking service provided by bank. When you have problems
relating to banking services, Percentage 4 16 30
Table4:Satisfaction of customers your bank shows interest in
SATISFACTION: Strongly Disagree Neutral Agree Strongly solving it.
Employees in the banks No. of Respondents 1 2 15
Disagree Agree
willing to help you Percentage 2 2 4 10
Satisfied with the services No. of Respondents 3 9 20 18 Banks keeps you updated. No. of Respondents 2 6 4 19
provided by my bank. Percentage 6 18 40 36 Percentage 4 12 8 38
Satisfied with the responsiveness No. of Respondents 7 9 16 18 Linking Aadhar No. with the No. of Respondents 1 2 2 30
bank employees. Percentage 14 18 bank A/c is good. 2 60
32 36 Percentage 4 4
Satisfied with the operating No. of Respondents 2 2 33 13 Table- 4 :From the study it is revealed that 36% of the respondents equally agree and strongly agree with
hours of the bank. Percentage 4 4 66 26 the punctuality ofbank employees when it promises to do something by certain time and 0% of the respondents
Satisfied with the various No. of Respondents 8 23 8 strongly disagree with this.
11
charges of the bank. Percentage 16 46 16 It shows that 50% of respondents agree that bank shows interest in solving the problems relating to banking
22
services and 0% of the respondents strongly disagree with this.
Satisfied with the knowledge No. of Respondents 2 5 29 14
of bank employees about Percentage 4 10 58 It is found 62% of the respondents agree that employees in the bank willing to help them and 2% of the
28
various services respondents equally disagree and strongly disagree with that.
The study reveals that 38% of the employees equally agree and strongly agree with the statement ‘bank
Table 3: The study shows that 40% of respondents agree with the statement ‘satisfied with the services
keeps you updated’ and 2% of the respondents equally disagree and disagree with the statement.
provided by my bank' and 6% of respondents disagree with the statement.
The study shows that 60% of the respondents strongly agree with linking aadhar number with bank account
The study reveals that 36% of the respondents strongly agree with the statement ‘Satisfied with the
is good and 2% of respondents strongly disagree with this.
responsiveness of bank employees’ and 14% of respondents disagree with the statement.
Table5: Security of customers
From the study it is found that 66% of the respondents agree with the statement ‘Satisfied with the operating
hours of the bank' and 26% of respondents strongly agree with the statement. Table4: Satisfaction of customers
It is revealed that 46% of respondents disagree with the statement ‘satisfied with the various charges of the SECURITY: Strongly Disagree Neutral Agree Strongly
bank’ and 16% of respondents strongly disagree and are in neutral with the statement Disagree Agree
l feel safe when using this No. of Respondents 2 24 24
The study shows that 58% of respondents agree with the statement ‘Satisfied with the knowledge of bank
employees about various banking services’ and 10% of respondents are in neutral in their opinion. bank. Percentage 4 48 48
Perform of the staff is well No. of Respondents 4 5 18 23
Table4:Servive quality of bank
& it is impossible that 1 lose Percentage 8 10 36 46
Table4:Satisfaction of customers my transaction.
SERVICE QUALITY: Strongly Disagree Neutral Agree Strongly The bank keeps the customer No. of Respondents 15 11 24
Disagree Agree information. Percentage 30 22 48
When your bank promises to No. of Respondents 4 10 18 18 Using internet and mobile No. of Respondents 5 12 22
do something by certain time, Percentage 8 20 36 36 banking is safe.
! it does so. ____________
12 13
Table-5 : The study reveals that 48% of respondents equally agree and strongly agree with the statement ‘I 2. Boonlertvanich, K. (2011). Effect ofcustomer perceived value on satisfaction and customer loyalty in
feel safe using this bank’ and 0% of respondents equally disagree and strongly disagree with that statement. banking service: the moderating effect ofmain-bank status. International Journal of Business Research,
The study shows that 46% of respondents strongly agree with the statement ‘Perform of the staff is well 11(6), 40-54
and it’s impossible that I lose my transaction’ and 0% of respondents strongly disagree with that statement. of the Relationship among Service Quality, Customer
3. Suda S, Sarunya L (2001) An Investigation
Retail Store. Graduate School
Satisfaction, Customer Loyalty and Word of Mouth Communication in a
It is found that 48% of respondents strongly agree with the statement ‘The bank keeps the customer
information’ and 0% of respondents equally disagree and strongly disagree with that statement. of Commerce, Burap.
4. Jham, V. & Khan, K. M, (2008)., “Customer Satisfaction in the Indian Banking Sector: A study”, IIMB
It is revealed that 44% of respondents agree with the statement ‘Using internet and mobile banking is safe’
Management Review, vol. 20, no.l, pp. 84-93, March 2008
and 0% of respondents are of the opinion that they strongly disagree with the statement.
n resource management: a review and
Major Findings: 5. Redman, T. and Mathews, B.R., “Service quality and huma
rch agenda”, Personnel Review, vol. 27, no. 1, pp. 57-77,1998
1. Most of the respondents are aware of the modem banking services.
6. Angur,M. G, Nataraajan, R, and Jahera, J. S„ “ Service Quality in the banking industry: an assessment
2. 46% of the respondents disagree with regards to the various charges of the banks especially public in a developing economy”, International Journal of BankMarketing, vol. 17, no.3, pp. 116-123, 1
sector bank.
7. Mengi, P, “Customer Satisfaction with Service Quality: an empirical study of public and private
3. Most of the respondents feel good about linking Aadhar No. with Bank A/c. sector banks”, IUP Journal of Management Research, vol. 8, no.9,pp.7-17,2009
4. Majority of the respondents are satisfied with the services provided by bank and only 6% of respondents
disagreed with this.
Suggestions:
The recommendation that could be offered from this study is that the bank should inform the customers
before debiting the various unnecessary charges from their account and charges should also be fair enough.
The banks should conduct awareness program to the customers about recent trends in banking sector.
Future Research:
The current study has its limitation in terms of sample area whereby there is only specific area, which is
PutturTaluk, is being selected. It would be recommended that the future research should be extended to
other areas in Dakshina Kannada that has large number of customers with bank. They may identify more
factors that will satisfy the customers with the change in the modem banking services. This would aid them
to gain better understanding on aspects relating to satisfaction of customers in modem banking services.
Conclusion:
No doubt that recent trends in banking sector have brought many advantages to the customers. There are
still customers who have bank account but there is lack of knowledge of various modem banking services
and the bank should concentrate on these customers and conduct program to make them beneficiaries of
these services. So, it would helpful for the development of the country.
Reference:
I. Aghdaie, S. F., &Faghani, F. (2012). Mobile Banking Service Quality and Customer Satisfaction
(Application of SERVQUAL Model). International Journal ofManagemnet and Business Research,
2(4), 351-361.
15
14
CHANGING PERCEPTION OF THE CUSTOMERS OF HOUSING FINANCE suggested that popularity of the housing loan schemes should be improved by promotional activities. So
*Dr. Yaflush Kumar **Harish that brand name will be laid down in the minds of the proportion customers.
*Associate Professor Department of Commerce Hampankatta Mangalore -1
**Department of Commerce, Sri Mahaveera College, Moodbidri, D.K, Nagaraj B. (2009). The perception of beneficiaries with regard to conditions and practices of private and
Karnataka University public sector banks shows that there is a steep increase in housing shortage which is the result of slow
progress of housing activities and rapid increase in demand for housing due to population explosion.
Introduction: There is increase in Institutional mechanism for providing housing finance. With regard to public sector
Housing is one of the most important needs of human beings. Ever since human civilization evolved, institutions the beneficiaries feel that interest are moderate and repayment period is reasonably long which
human settlement becomes a primary concern along with food and clothing. Housing laid the foundation for is considered as more conducive to the borrowers. But, there has been delay on sanctioning and disbursement
human settlement and civilization. Thus, good housing is a pre-requisite for human development and welfare. of the loan. Majority of the beneficiaries prefer to take home loan from commercial banks rather than
It is very essential for the smooth operation of a modern society. The shortage of housing in India persists specialised financial institutions. Special financial institutions provide the short repayment schedule. The
since Independence. The nature of housing problem in India is complex and multi-dimensional. In finding a study observed that Government subsidies have reached the needy. The borrowers are need to go pillar to
post to get various documents required for the housing loans as per the procedures insisted by the Banks.
solution to the enormous housing problem, the housing finance system and the banks involved in it play an
important role. Housing development mainly depend on the financial institutions such as banks, credit There is need to follow single window policy by the Banks.
corporations and housing financing companies for the supply of finance to meet their financial needs. Utkarsh Gupta and Dr. Richa Sinha (2015) ‘A comparative study on Factors Affecting Consumers
There is a positive relationship among the customers’ expectations, satisfaction and the service quality. Buying behaviour towards home loans (with special reference to SBI and LIC, Allahabad). The study
Understanding the perception of the customers is very much essential for the success of housing finance focuses on the home loan offered by SBI and LIC and makes comparative analysis offthe factors that affect
sector. Banks and financial institutions have to change their lending pattern and policies taking into account the consumers. The study reveals the various factors that influence the decision of the consumers for taking
the customers aspirations. Therefore, the study of customers’ perception is a challenging task for the home loan. Authors observed that fixed rate of interest are the most preferred option by the borrowers of
Banks. In this context, this study highlights the changing perceptions of the customers of housing finance. home loan. Low rate of interest easy accessibility, Reputation of the Institution and scheme offered by the
company were the major factors that the borrower consider as the reason for selecting SBI as a bank for
Objectives
taking home loan. Prompt service was the major factor that the borrower considered as the reason for
The main objective of the paper is to analyse the dynamics of customers’ perception towards housing
selecting LIC as an institution for borrowing home loan. Easy instalments, longer period of repayment,
finance in India. The specific objectives are as follows
simple documentation procedures are the other major factors that had influenced the borrower.
• To know the challenges of housing finance sector
Rajalaxmi, C. Pappeswari & Venkatesh (2013), Study reveals that perception regarding the house loan
• To know the importance customers perception in housing finance ofgender, age, educational qualification were dependent in the case and public and private sector banks. It
was opined that bank should review the housing loan portfolio at periodical intervals for capturing the
• To know the impact of ICT on housing finance sector in India new market to avoid risk and for updating their schemes. They also suggested that banks must arrange
Methodology frequent customers meeting to popularize the housing loan schemes opening a special housing branch and
The paper is developed on the basis of review of literature and secondary data. Analysis of related issue is posting field officers for housing finance with view to tap the business potential and to serve the clients on
carried on the basis of secondary data collected from the important sources pertaining Housing finance a continuous basis may be helpful.
sector in India. Discussions on housing finance institutions in India, dynamics of customers’ perception Housing finance institutions in India
and challenges of housing finance sector in India are attempted. At present housing finance market has a keen competition, among the public sector housing finance
Review of literature companies, private sector housing com-panies and banks. Housing Finance is an important element of
Shani and P. Sapna A (2011), ‘Customer satisfaction towards Housing loan in Banking sector with housing policies persuaded by the Governments of developed and developing countries of the world. In
reference to Corporation Banks’. This study reveals that majority of the customer having good opinion India the flow ofcredit into the housing sector comes from two sources that is formal and informal sectors.
about the service provided by the Corporation banks with respect to housing loan. Because of the monthly According to Dr.Rangarajan Committee Report in the year 1987, the formal sector has been boom in the
instalment schedule the customer felt early to repay the loan amount. financial markets.
The customers’ reaction about demand of any securities availing for housing loan, majority of respondents The major housing finance institutions meeting housing finance in India are as follows:
were satisfied bank dealings, processing or loan account management and customer service. The study
16 17
Scheduled Commercial Banks 1. Rejection at the first stage Strange but true, many of the home loan applications do not pass even the
The Indian Mortgage Market has been growing at around 18.0 per cent in the fiscal year 2010-11 owing to first test. They are out rightly rejected due to incompatibility between the borrower’s qualifications and
enabling factors such as a stable operating environment, buoyant property prices etc. The share of Banks lenders requirements. It could be the age criteria, income criteria, proper documents not being submitted,
can be attributed to extensive network and broad customer base, access to stable low-cost funds and other the bank not being able to verify your details properly, not passing the field investigations conducted by the
regulatory mandates. Public sector banks: SBI, Bank of Baroda, Dena Bank, Bank of India etc. Private bank and many more. The best way to avoid being rejected in this way is to check the eligibility requirements
sector banks: HDFC, ICICI bank, Axis Bank, ING Vysya Bank. Foreign Banks: Standard Charted bank, of lending banks carefully and apply only to that bank which matches the customers’ profile. Keeping
City Bank, HSBC and so on. proper documents ready and providing accurate, verifiable details to the banks will ensure that you sail
through the preliminary verification process.
Housing Finance Companies
Housing Finance Companies (specialized institutions lending for housing) registered with the National 2. Processing fee not refunded
Housing Bank are a major component of the mortgage lending institutions in India. HFCs are regulated and With every application form for home loans, banks require about 0.25% to 1% of the loan amount to be
supervised by National Housing Bank under the provisions of the National Housing Bank Act, 1987 and submitted as the processing fees. This processing fee is generally not refundable. In simple words this
the directions and guidelines issued there under from time to time. The regulatory measures include prudential means that for whatever reasons, if the bank finds that you don’t deserve the home loan, this fee won’t be
norms, transparent and standardized accounting and disclosure policies, fair practice code, asset liability returned. This is the cost of applying for home loans. If in any case, the bank you have applied to states that
management and other risk management practices etc. DHFL, HDFC GRUH, India bulls Housing Finance, it will refund the processing fees in case the bank doesn’t sanction the home loan, it is better to get any such
Sundaram BNP Paribas. declaration in writing and make sure that the clause is enforceable. A verbal statement by bank authorities
won’t be of any use unless it is properly and legally documented. In all other cases there is little remedy
Insurance companies
for processing fees being not refunded.
Insurance companies are another form of housing financing institution, Life Insurance Corporation Housing
finance is another major player in housing sector in India with about 8.0 per cent of market share. Promoted 3. Desired loan not sanctioned
by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong The loan amount sanctioned is based mostly on repayment capacity of the borrower. Many things come into
brand presence. Other insurance companies providing housing finance are GIC Housing Finance, picture, when the bank decides how much home loan a person can get. The monthly income, financial
New India assurance, National Insurance, ICICI Lambard, TATA AIG, Bajaj Allianz. history, other unpaid loans with the borrower, past repayment record, credit card usage history if any,
bounced checks, average balance with the banks, continuity in present employment, total years in
Micro Finance Institutions
employment, nature of employment etc. These factors all clubbed together help the bank to decide whether
Microfinance Institutions or Non Governmental Organizations who are present locally and have a bottom
it will be able to recover its money satisfactorily or not.
participative approach are making various efforts to cater to the housing finance needs of the low income
segments of the society. The MFIs work on the model of SHGs linked with Banks. The National Housing 4. The Interest Rate Dilemma
Bank has recognized the penetration of Housing Micro Finance Institutions as delivery mechanisms for Whether to go for a fixed rate or floating rate interest for home loans is a dilemma which almost every
channelizing housing finance to the un-served sections of society and accordingly developed a suitable home loan borrower faces. Even after deciding on a particular loan regime, the home loan terms and
Housing Microfinance Pro-gramme to cater to the needs of this section. condition fine prints can create havoc with your interest rates. For example even if a borrower has opted
for fixed rate home loan and the bank has promised him a rate which he feels is good, the catch is in the fine
Developmental Financial Institutions
prints which authorizes the bank to vary this fixed rate every 2 years, things can go worse for the fixed rate
HUDCO, SIDBI, NA-BARD, Apex Housing cooperative society, State Cooperative ag-riculture and Rural borrower. Similarly if the bank doesn't pass you the benefit of lowered interest rates in floating interest
Banks etc., Development Finance Institutions (DFIs) have mainly catered to the medium to long-term
rate regime, it will be of a little value. Avoiding such a situation essentially means that you study the terms
financing requirements. Industrial Finance Corporation of India (IFCI) was the first DFI which was
and conditions of home loan carefully and clearly ask the bank about such things. In case of floating interest
established to extend long-term finance to industry. Industrial Investment Bank of India (UBI) Ltd, Export-
rates the facts can be verified by checking how the interest rates on home loan dropped during low interest
Im-port Bank of India (EXIM) and Tourism Finance Corporation of In-dia (TFCI) Ltd which provide long periods.
term finance to various sectors; and ii) refinance institutions such as National Bank for Agriculture and
Rural Development (NABARD), Small Industries Development Bank of India (SIDBI) and National Housing Importance of customers’ perception
Bank (NHB) which pro-vide finance to banking as well as non-banking financial interme-diaries. The affordable housing customer seeks a strong value proposition. Limited income and difficulty in access
to credit mean that a home will most likely comprise the most important asset and biggest investment in his
Problems of customers in respect of Housing Loan Getting a home loan is a lengthy procedure. However
or her life time and will form the starting point for long term welfare of his or her family. Customers
simple it might look in the bank’s advertisement, the fact remains that there are a lot of hiccups in the entire
perception describes the how customer view the institution, its products and their services. The understanding
process. Following are the most common problems faced by home loan borrowers in India.
18
19
II

of the customers’ perception benefits the banks for the fact based decision making about the housing
banks to capture the market is not healthy. With the increasing delinquency rates, some of the banks might
finance. Following are essential uses of understanding the customers’ perception
be charging just their cost of funds as interest on housing loans.
• Understanding the customers perception is very much required to strengthen the customers
relationship Asset Liability Mismatch
Banks are mobilizing short-deposits. Housing loans are given for longer terms of 15-20 years. Thus, the
• It provides for better marketing ofthe banking services to the prospective customers present ALM positioning of banks due to short-term borrowing do not supporting Housing finance. However,
• It gives the way for identification and improvement of the banking services pertaining to housing banks are in an advantageous position while compared to HFCs.With increasing demand for housing loans
finance from the banking, there is a bound to be asset liability mismatch. Asset Liability Mismatchcan be set right
with the securitization, mobilization of long term deposits, issue of deposit linked home loans.
• It helps to understand the interest, likes and dislikes of the customers about the housing finance
ventures Concentration on salaried classed only
Banks in India have been catering mostly to the housing needs ofthe urban salaried class only. The expected
Dynamics of Customer’s Perception demand in housing from this particular segment is only around 30 per cent .Banks have selected this
The success of the banking institution lies in the popularity of their schemes. The study of customers’ category due to two main reasons. The income of boirower can be judged accordingly. Thus, banks are
perception helps the bankers to set priorities for projects. The segmentation of housing loan borrowers mitigating their credit risk by selecting a borrower who has got the means to repay the loans. It is estimated
based on social status, geographical region helps the bankers to meet the customers’ expectations. The type that the demand for housing loans from the salaried class is only around 30.0 per cent of the total demand.
of product and services offered by an institution will affect the customer’s perception. In order to meet the But, there is a very large demand from the other sections of the society too like business class self-
changing demands of the customers’ bank should maintain marketing or Research and Development employed, professionals, unorganized sectors, non-service people and labourers etc. Banks are averse to
department this category of borrowers because of high credit risk.
Proper credit appraisal is to be done. Banks must take into account the demands of other than salaried Increasing delinquency rates
groups. Non- salaried group constitute a major share of housing finance seekers. In changing scenario Housing finance is one of the most preferred segments for bankers on account of its least delinquency rates.
banks must consider the aspirations of non-salaried groups seeking housing finance. Attractive schemes But of late, the delinquency rates in housing finance are going up. This may be due to the fact that the
must be evolved by the banks to cater the needs of non- salaried groups. Housing loan schemes and growths in housing loans during the past two to three years were exorbitant and banks were also new to the
process of sanctioning of loans should be simplified to make a common man to understand. On line banking field of housing finance. Now, that the banks gained sufficient experience, the delinquency rates will come
process will ensure transparency of transactions. Proper appraisal of the customers demand for loan down in the years to come.
should be followed and details of the acceptance or rejection of the proposal should be known to the
customers. Fixed rate lending risk
In case of fixed rate loans, banks may face a problem if the cost of funds of the bank goes up due to
Information Communication Technology and Housing Finance increasing interest rate regime. But at present, most of the bank housing loans are bearing adjustable rate or
The development in the field of information communication technology has greatly contributed to the floating rate. In case of adjustable rate, the interest rate risk gets passed on to the customer. In case, interest
growth of housing finance sector. Today housing institutions are providing updated information regarding rate move up, the probability of defaults may go up if adequate income margin for adjusting the increase
interest rates, repayment procedures and latest RBI guidelines. Introduction of online banking services EMI out go is not made. Ideally around 40.0 per cent of the monthly income is considered as affordable
enables the housing finance institutions to provide automatic generated messages or emails to the customers. EMI.
The ICT will help the banks to attract the new customers and to improve service satisfaction of the existing
customers. Customer Expectations
Aspiring homeowners in the country have been making the most competition in housing finance industry
Challenges of Housing Finance over the past couple of years. In process of attracting more customers and increased competition, the rate
The scope available for housing finance is not without challenges. Banks and other Institutions are facing wars among the banks and HFCs have brought down the housing loan interest rates to the lowest in recent
the following challenges in the area of housing finance. past.
Declining Spread Conclusion
Banks due to competition keep on reducing their interest rates in order to capture maximum market share. Every individual will have the dream of owning a house in present society. Owning house is considered as
Banks by only lowering the interest rates are approaching their cost of funds. Though banks are having one of the major source of financial and physical security. The Banks and financial institutions should
advantage over Housing Finance Company’s in accessing to low cost funds, the interest rate war among the device new schemes keeping in view the needs of the people living below poverty line to lend at the
II - 21
PI
BANKERS’ PERSPECTIVE
affordable rates and to reduce their dependency on money lenders. The formalities to be fulfilled BRINGING A SOCIAL CHANGE:
availing loans should also be minimised. Procuring, conversion and administrative fees charged by the * Malathy.K ** Dr. Subhashinisrivatsa
institutions should be minimised. Housing finance is a service industry. The main objective of the housing * Assistant Professor, Dept, of Commerce, **Principal, GF.GC. HALEYANGADI University
finance is to create and retain the customers’. Evening College, Mangaluru.
References
1. Anand Kumar (2016) ; Growth and Impact of Housing Finance on Indian Economy A Review; Introduction: civilization. It is the greatest gift of God which is
International Journal of Research in Management, Science & Technology, Vol.4, Issue. 1, PP 58-64 Technology has contributed to the development of human ries of technological
regarded as the mother of human civilization. In every stage of human civilization, a se
2. C. Shalini Kumar & V. Sudha (2014): Housing loans - Customer perspective (A study conducted with innovations and inventions were made by eminent scholars and they have brought revolutionary changes in
reference to Chennai, Madras University Journal of Business and Finance, vol.2, No.2 every walk of human life. Banking Industry also has witnessed several technological advancements over a
3. Hasanbanu and V. Jeya shree, “A comparative study on factors influencing Housing loan Borrowers of period oftime. Introduction ofCBS (Core Banking Solutions) by the bankers is the biggest driver of social
public and private sector Banks in Uthanapalayam Taluk”, K.K.R.H. colleges Uthamapalyam, Tamilnadu. change. CBS has brought banking services to people wherever they are and whenever they need them
through electronic devices like computers, mobile phones, iPods etc. In fact CBS is the root cause for
4. M. Vijayalakshmi, B. Subburaj (October 2011) - Housing finance - An Analysis or Pore purchase major transformation in Banking Industry. Concept of Digital Banking can be visualised through proper
behavior of consumers, Indian Journal of Marketing, Volume 41, issue 10 of CBS and it will be instrumental in raising the revenue of the banking sector of the
implementation
5. Nagaraj B. (2009); “Housing finance beneficiaries Perception analysis a case study of Mysore district; economy by ensuring transparency in banking transactions. This study has presumed that it is the CBS
which had built a supportive mindset in the society to go for complaint free demonetisation and cashless
Thesis, PP 224-264
6. Saravan P. (2007) “Recent experiences in the housing finance sector; A study with reference to India”. economy.
Housing finance International, Volume 2, issue 5, PP 45-4 Objectives: f CBS in bringing a social change.
1. To studythe perspectives ofBankers regarding the role o
e of banks.
2. To know the impact of Core Banking Solutions on the overall performanc
Significance Of Study:
Technological advancements are taking place at a very rapid pace everywhere. Coping up with the
requirements of the day is indispensable on the part of every businessman including the banker to attract
and retain more customers. Today Bankers are trying to reach the network of their services even to the
remote areas through Core banking Solutions. Hence this study is undertaken to know the perspectives of
the bankers regarding the role ofCBS in bringing social changes in general.
Review Of Literature:
Kunal Sinha .Ogilvy and Mather Shangai(2005), in their article on “The Future of Technology and its
lives” stated that technology, particularly information technology will bring more transparency
impact on our the institution of the family by crating newer and richer
and accountability in society. It will strengthen ourage individualism.
touch points. But they expressed a fear that in spite of changes in society, it may enc
They urged for maintaining human relationship alive.
Michael E Porter (2006) in his article on “Technologyand Competitive Advantage” opined that
technological innovations have strategic implications for individual companies and greatly influence
industries as a whole. He focussed mainly on ways of recognizing and exploiting the significance of
change.
22
"
1
Edmore Mutekwe (2012) in his conceptual paper on “The impact of technology on social change: a
sociological perspective” presented primary changes in human history in four forms of social revolutions Table 1: Classification of respondents on the basis of type of banks where they are employed
namely, domestication, agriculture, industrialization, and information. According to him technology is the Type ofbank Number of respondent Percentage
organizing force for social life, when it changes; its effects can be found everywhere. He also highlighted Public sector bank 28 56
the social movements and complexities arising due to technological changes. Private sector bank 22 44
Fred Guterl (2014) in his article on “What Impact Will Emerging Technologies Have on Society?, opined Total 50 100
that technological applications improve the outreach and efficiency of government. It also improves civic Source: Primary data
participation in public decision making. But he expressed a fear that excessive dominance of technology Among 50 bank employees surveyed, 56 percent are employees ofpublic sector banks and 44 percent are employees
may result in losing control over trust factor in human relationship. According to him, in future, people may of private sector banks. This is due to the fact that sample is selected by convenience sampling method.
not trust each other; instead they may trust what data tells them.
Table 2: Bankers perception regarding admissibility and usage Core Banking channels by customers
Though several studies are undertaken by eminent authorities in different parts of the world about impact Number of respondents Percentage
Perception of bankers
oftechnology on society, no specific studies are undertaken on the concept of Core Banking technology and 90
Customers use it by their own____________ 45
its role in bringing social changes. Hence this study is undertaken to know the perspectives of bankers in
Customers use it only through bankers persuasion 05 10
this regard.
Total 50 100
Research Methodology:
Source: Primary data
Study is both conceptual and empirical in nature. Both primary and secondary data are used for the purpose
of study. Primary data is collected by conducting a survey among 50 bank employees of Mangalore city by Table 2 reveals the perception of bankers regarding the admissibility and usage Core banking channels by
using a questionnaire. Secondary data is incorporated from journals, newspapers and internet. the customers. Majority of bankers’( 90 percent) perceive that customers use technology very often and
they willingly use Core Banking Channels as they are more convenient and time saving. Only 10 percent of
Hypotheses:
customers need persuasion from bankers’ side for using those channels. It means that CBS has already
I. Perception of bankers regarding role of Core Banking Solutions in bringing a social change brought changes in the banking practices of customers.
Ho: Bankers perceive that CBS has not brought any changes in the society Hypothesis testing:
• Perception of bankers regarding role of Core Banking Solutions in bringing a social change
HI: Bankers perceive that CBS has brought changes in the society
Ho: Bankers perceive that CBS has not brought any changes in the society
D. CBS and overall performance of banks H1: Bankers perceive that CBS has brought changes in the society
Ho: Bankers perceive that there is no relationship between CBS and overall performance of Table 2, clearly reveals that in the opinion of the bankers, customers voluntarily make use CBS channels
banks. instead ofrelying upon traditional banking system ofvisiting the branch personally. Hence null hypothesis
is rejected. We therefore conclude that CBS has brought changes in the banking activities of the people
HI: Bankers perceive that there is relationship between CBS and overall performance of banks. which have a direct bearing on their social behaviour and social status. Bankers perceive that CBS is
Limitations Of Study: responsible for bringing social change.
Study is made by considering the opinion of uj st 50 bank employees, who have been chosen by convenience Table 3:Perception of bankers regarding Age-wise Preference of Core Banking Technology
sampling method. Hence general idea about the perceptions of the bankers is incorporated in the article. Age groups of customers Multi choice responses Percentage Rank
For getting more specific results, further study may be undertaken. 50 55.5 I
Younger generation
Data Analysis: Middle age 35 38.9 II
Old generation 05 05.6 in

Statistical tools like percentage analysis, comparative analysis with ranking are used for the purpose of
data analysis. Total multi choice responses 90 100
Source: Primary data
25
I j Redefining Strategies For International Markets Redefining Strategies For International Markets
Table 3, reveals that, multi choice responses of the respondents for younger generation customers is highest
(55.5 percent) "id is {given I rank based on their opinion. I. mean’ lhal younger generation custooiers are
more exposed to technology and they prefer to conduct their dealing with banks through technology driven 01 DanK tUilon
of social b
change brought ine by Core banking technology.
Core Banking channels to a high extent. Multi choice responses of the respondents for middle age group
customers is 38.9 percent and they are given II rank by the bankers on the basis of preference shown by Table 6: Bankers’ perception regarding the impact of Core banking technology on overall performance
customers in the use of Core Banking technology. Old generation customers find it difficult to operate of banks
electronic devices and it’s hard to make them understand the usage of technology. They generally prefer to Number of Respondents Percentage
Extent of improvement
meet bankers personally at the branches wherein they have opened their accounts to conduct their banking
To a large extent 20 40
transactions. Hence multi choice responses of bankers for old generation customers are just 5.6 percent
To some extent 25 50
and are given the last rank (III) in the above table.
A Little 4 08
Table 4: Perception of bankers regarding Occupation-wise Preference of Core Banking Technology 02
Very little
Occupation of customers Multi choice responses Percentage Rank Total 50 100
Professionals 48 31.8 I
Source: primary data
Businessmen 40 26.5 II
Employees From table 6, it is clear that 50 percent of respondents perceive that Core Banking technology is responsible
38 25.2 ra for improving the overall performance of the banks to some extent. 40 percent ofrespondents believe that
Others 25 16.5 IV Core Banking technology is responsible for improving the overall performance of banks to a larger extent.
Total multi choice 151 100
Testing of Hypothesis:
Source: primary data • CBS and overall performance of banks
It is evident form table 4 that, according to the perception of bankers, professionals like Chartered Ho: Bankers perceive that there is no relationship between CBS and overall performance of
accountants, doctors, lawyers, etc largely prefer usage of Core Banking technology for conducting their banks.
banking transactions. Multi choice responses for professionals is highest (31.8 percent) and is given I rank HI: Bankers perceive that there is relationship between CBS and overall performance of
by the bankers. Multi choice responses of bankers for businessmen are 26.5 percent and are given II rank banks.
by them. It is due to the fact that, businessmen need little guidance and persuasion from bankers side
regarding the usage of Core Banking technology, particularly for internet banking. Multi choice responses Table 6 clearly reveals that, according to the perception of bankers, there is a relationship between CBS
of respondents for employees are 25.2 percent and for other customers it is 16.5 percent and are given III and overall performance of banks. 90 percent of bankers agree that CBS is responsible for improvement in
and IV rank by them. It means that more guidance and persuasion is needed from bankers’ side to encourage overall performance of banks. Hence null hypothesis is rejected and alternative hypothesis is accepted.
them to use Core Banking technology. We therefore conclude that introduction of CBS has resulted in improving the overall performance
ofbanks.
Table 5: Perception of bankers regarding Velocity of Bank Customers Switching from Traditional to
Core Banking Technology Findings:
• 90 percent of respondents surveyed perceive that their customers make use of CBS technology
Switch over rate Number of Respondents Percentage very often and they willingly use Core Banking Channels as they are more convenient and time
Very high 04 08 saving. Percentage of customers willing to approach branch banks personally is very less.
High 40 80 • Bankers perceive that CBS is responsible to bring out a social change.
Average 05 10
Low • Preference rate of younger generation customers for Core Banking Technology is high.
01 02
Very low 00 • According to the perception of bankers, professionals like chartered accountants, doctors,
00
Total 50
lawyers, etc largely prefer usage of Core Banking technology for conducting their banking
100
transactions.
Source: primary data
26 27
• As per the perceptions of majority (80 percent) of respondents,’ velocity of bank customers
A COMPARATIVE ANALYSIS OF MICRO INSURANCE IN INDIA AND SOUTH
switching from traditional to Core Banking technology is high.
AFRICA: A DESCRIPTIVE STUDY
• There is relationship between CBS and overall performance of banks. *Vidyadhara Hegde S **Dr. Subhashini Srivalsa
*Assistant Professor,MPIM Govt First Grade College, Karkala, Udupi District,
• Introduction of CBS has resulted in improving the overall performance ofbanks.
& Research Scholar, Mangalore University.
Suggestions: **Principal, University Evening College, Mangaluru- 01
• According to the views of bankers, among various Core Banking channels, ATMs are generally
preferred and used by all most all customers. Customers are little reluctant to use other channels Introduction:
like, mobile banking, internet banking, telephone banking etc. There is a need to give attention Insurance is a concept involving a contract under which an insurer shall pay specific pre-defined
towards flaws involved in these channels.
compensation when financial damages are caused by pre-defined cost-generating events, in exchange for
• More user friendly CBS technology should be installed. up-front payments ofa premium by the insured. Due to innumerable factors, regular commercial insurance,
as is common in industrial countries, is difficult to establish in low-income countries. Therefore, new
• Customers of the banks must be updated about the technological changes introduced by the
approaches are needed to protect the life of the poor and their property, health from risk and uncertainly.
bankers from time to time.
Micro insurance is a form of financial aid designed to suit the needs of low income people.
• Bank employees must aim at creating customers ecstasy rather than their own monetary benefits.
The origin of micro insurance is similar to that of micro credit. According to Churchill (2007), micro
Conclusion: insurance has existed since 1800s, when mutual protection schemes to the poor workers. In many countries
Change is the order of the day. In the modem technological era, people are exposed to different types of micro insurance schemes were already a part of the process of designing and implementing increasingly
technology every day. Digital India campaign launched by our honourable Prime Minister Sri Narend more consistent and incorporated social protection systems. In India and Senegal micro insurance schemes
Modi on 2nd July 2015 is gaining more popularity day by day. Bankers are trying to reach 100 percent were mentioned in the national social protection strategy as a key mechanism. In Rwanda and Ghana, the
cashless banking through the concept ofdigital banking and green banking. It is a healthy sign that people of stale implemented nation-wide social protection schemes on health that are built on direct and community
the country are also willing to adapt themselves to these changes. Core banking technology is a major based mutual organizations. In Bangladesh, Grameen bank had started a separate wing called Grameen
device available to serve the interest of both bankers and customers in this regard.
Kalyan (village welfare) which implemented micro insurance schemes through women groups in the villages.
References: South Arica placed high social and cultural values in micro insurance covers. Micro Insurance Centre
• Edmore Mutekwe (2012) “The impact of technology on social change: a sociological perspective” (2015) had estimated that around 160 million of the low income people in developing countries have used
Journal ofResearch in Peace, Gender and Development (ISSN: 2251 -0036) Vol. 2(11) pp. 226- micro insurance products.
238, November, 2012
Table -1: Estimated outreach of micro insurance: Millions of risks covered
• Michael E Porter (2006) in his article on “Technologyand Competitive Advantag^.''Journal of
Business Strategy, Vol. 5 Issue: 3, pp.60-78, 2006 Years Asia Latin America Africa
• Fred Guterl (2014) “What Impact Will Emerging Technologies Have on Society? Scientific 2006 66 8 4.5
American, November 10,2014.
2009 150 20 14.7
• Kunal Sinha ,Ogilvy and Mather Shangai(2005) “The Future ofTechnology and its impact on our 400 50 25
lives” WPP April 2005 2011
Source: Craig Churchill and Mic/tal Maul, 2012

Micro insurance is the protection of low-income people against specific perils in exchange for regular
premium payments proportionate to the likelihood and cost ofthe risk involved. Generally, micro insurance
is for persons ignored (excluded) from mainstream of commercial and social insurance schemes, and
persons who have not had access to appropriate products. Though recent developments in the micro
28
29
insurance sector have been encouraging in most of the developing countries and product segments, the
likely to live and work in risky environments and also are portrayed to be more vulnerable to illness,
actual reach is not noteworthy and covers only a fraction of the potential market. Numerous challenges
accidents, loss of property due to theft or fire, agricultural losses, and natural and man-made disasters
remain that need to be overcome before micro insurance growth and benefits accelerate in developing (Oxfam GB, 2012). Not only can exposure to these risks result in substantial financial losses, but vulnerable
countries. Hence, present study is undertaken to examine the growth and prospect of micro insurance in households suffer from the ongoing uncertainty about whether and when a loss might occur. (Banerjee,
India and South Africa. 2008). Although there is little evidence-based knowledge of the impact of micro insurance on poverty
Need for the Micro Insurance: reduction, micro insurance can help reduce the vulnerability that poor households face and as a consequence,
enable the poor to improve their lives. In this regard, Micro Insurance has been identified as one possible
Micro-insurance is a key element in the financial services package for people at the bottom of the pyramid. financial tool to address poverty (Micro insurance Network, 2013).
The poor face more risks than the well-off, but more importantly they are more vulnerable to the same risk.
Usually, the poor face two types of risks - idiosyncratic (specific to the household) and covariate (common, Preethi Dixit and Sanjeev Mahrotra (2015) has explain that micro insurance which are affordable to the
eg., drought, epidemic, etc.). To combat these risks, the poor do pro-active risk management - grain rural and urban poor and to enable micro insurance to be an integral part of the country’s wider insurance
storage, savings, asset accumulation (specially bullocks and cattles), loans from friends and relatives, etc. system. The main thrust of micro insurance regulations is protection of low income people with affordable
However, the prevalent forms of risk management (in kind savings, self-insurance, mutual insurance) insurance products to help them cope with and recover from common risks with standardized popular
which were appropriate earlier are no longer adequate. Poverty is not just a state of deprivation but has insurance products adhering to certain levels of cover, premium and benefit standards. Ratna Kishor
(2013) the study analyzed that micro insurance is the term used to refer the insurance to the low income
latent vulnerability. Micro insurance should, therefore, provide greater economic and psychological security
people as it is different from insurance in general where micro insurance is a low value product with less
to the poor as it reduces exposure to multiple risks and cushions the impact of a disaster. There is an
premium and benefits. Micro insurance can boost resources for the rural poor people. Geetha and
overwhelming demand for social protection among the poor. Micro insurance in conjunction with micro
Vijayalakshmi (2014) has highlighted that micro life insurance sector will soon capture the low income
savings and micro credit could, therefore, go a long way in keeping this segment away from the poverty
segment of our economy. Micro insurance providers should begin by training and educating key intermediaries
trap and would truly be an integral component offinancial inclusion.
in the idea of promoting insurance and private insurers should also begin developing relationship with
Objectives of the Study: existing delivery channels.
The primary objective of this paper is to compare micro insurance in perspective to the insurance industry Meenakshi and Jerinabi (2015) have concluded that micro insurance is not only the mechanism for
and as a role player in the Indian and South African economy. This primary objective is achieved by reducing vulnerability but also ensures social and economic security to the poor. It protects rural households
addressing the following secondary objectives: against those risks that are unable to protect themselves through informal mechanisms, savings or credit.
Narender Naik (2015) has reveals that micro insurance is the lowest premium and low coverage insurance
>To trace the growth and development of micro insurance in India and South Africa policies for people with low income. The products of micro insurance are designed with the objective of
> To study the different dimensions ofmicro insurance in India and South Africa protecting poor people.
> To determine and discuss the challenges posed to micro insurance in India and South Africa Micro Insurance in India:
Review of literature: In India, micro-insurance had remained as a secondary choice for financial inclusion. As people are
mostly exposed to lot of uncertainties and risks they must be provided with life, health and property
The concept of the micro insurance is one of the unique in nature which facilitates the basic understanding protection as a hedge against such element of risks and uncertainties. Micro insurance schemes were
about the insurance. Even now the people are not aware about the difference between micro insurance and mostly initiated by nongovernmental organizations or trust hospitals. The concept gained impetus partially
other insurances. Therefore, the following review will help to understand the basic issues about the micro due to microfinance activity and somewhat due to the regulations of IRDA which made it mandatory for all
insurance. insurance companies to carry out a certain percentage of their business in rural areas. Micro insurance in
The World Bank (2012) reports that inadequate access of basic cover by the poor, is a major cause of India has grown in phased manner along with the growth of insurance sector. Now each and every risks
poverty in developing countries. With a population of more than 50 million people, 44.6% consumed less which an individual face either solely or in group are covered by various micro insurance schemes and
strategies of public sector as well as private sector insurance companies. Insurance penetration in India is
than the “lower-bound” poverty line (those earning less than R3000 per month), South Africa is categorized
very low and the data about it over a period is enumerated in the following table.
by the World Bank as among the poor countries in the world (Index Mundi, 2013). Poor people are more
30 31
Bm.
Table: 2 - Insurance Penetration and Density in India
Usage:
Year Life (%) Non life (%) Industry (%) According to the IRDA Annual Report, 2011-12,14.8 million micro insurance policies were sold in India
in the year 2011-12 covering lives of 18.9 million people. The cumulative premium collected from micro
Density Penetration Density Penetration Density Penetration
insurance was Rs.2.86 billion. Hence, micro insurance constituted 4.59 percent of the total lives covered,
2001 9.1 2.15 2.4 0.56 11.5 2.71 7.6 per cent of total number of policies and 0.23 per cent of premium collected by the insurance industry of
2002 11.7 2.59 3.0 0.67 14.7 3.26 India. After micro insurance regulation 2005, there are some positive trends emerging in micro insurance
2003 12.9 2.26 3.5 0.62 16.4 2.88 business in India. According to IRDA Annual Report 2015 - 16, 8.16 million micro insurance policies
2004 15.7 2.53 4.0 0.64 19.7 3.17 were sold in India. So a positive growth in micro insurance policies from 0.93 million in 2007 - 08 to
8.16 million in 2015 - 16 is experienced, Apparently, LIC (Public Sector) has gained its market share with
2005 18.3 2.53 4.4 0.61 22.7 3.14
5.15 million numbers of micro insurance policies.
2006 33.2 4.10 5.2 0.60 38.4 4.80
2007 46.6 4.70 Players:
40.4 4.00 6.2 0.60
The micro insurance business in India has made a continuous progress in both the sectors whether it is
2008 41.2 4.00 6.2 0.60 47.4 4.60 public sector companies or private sector companies. There are 24 Life Insurers including 1 state owned
2009 47.7 4.60 6.7 0.60 54.3 5.20 and 28 General Insurers including 6 State owned.
2010 55.7 4.40 8.7 0.71 64.4 5.10
Figure 2 - Showing the number of insurers registered with IRDA as on 31s1 [March 2015.
2011 49.0 3.40 10.0 0.70 59.00 4.10
2012 42.7 3.17 10.5 0.78 53.2 3.96 30
2013 41.0 3.10 11.0 0.80 52.0 3.90
24
2014 44.0 2.6 11.0 0.7 55.0 3.3 25 23
2015 45.6 2.93 11.2 0.91 56.12 3.84
20
Source: IRDA Annual Report, 20015 -16 B Public Sector
15
h Private Sector
The extent of coverage of micro insurance in India based on the study report is given in figure. Figure
1 - Coverage of Micro insurance in India 10 a Industiy
6
Micro Insurance 'j 20%

5
1 1 0 1
distributed
through Ml 0
agency Life insurers Non life insurers Reinsurance
Informal/Unregistred, 20%
Formal, 80% Table 3 - Number of Registered Insurers Table:3- India
2 Types of Insurers
Life Insurers
Non Life Insurers 6
Public Sector
1
Private Sector
23
21
Total
24
27
Complusory, 90% Voluntary, 10% Notregistred, 100%
Re insurers 1 0 1
Total 8 44 52
80% not through Ml agency due to regulatary restrictions
Source: UNDP Study Report, 2013 Source: IRDA Annual Report, 2015 -16
II nBBBBBBaBBBBBBBBBB
BBODDDOBBaa DnaoBDanoB
BnnnB0DQ0BBdnn a o 0 ’
... ....................................................................... ■■■■■..................... 33
Products: m, ......... __ _______
Micro-insurance covers an extreme broad variety of services like-life insurance, health, invalidity c tti He,P GrouPs (SHG) appointed by an insurer to distribute micro-insurance through specified persons. The
breeding, crop and asset insurance. Micro-insurance products in the market have short policy contra 6 lowinglhree aPPr<>aches have emerged in India to provide insurance to low income populations (on y
terms and are overwhelmingly (but no longer exclusively) underwritten on a group basis. The folio ^ regulated channels are included here, not in-house schemes):
figure shows the different types of micro insurance products which arc proved as most useful and successful > Partnership model: (The partner-agent model) As the name implies this model involves a partnership
device in protecting low income people for losses in India. between an insurer and an agent that provides some kind of financial service to large numbers of
low-income people. This could be a microfinance organization, an NGO, or a business that supplies
Figure: 3 - Product Types: Ease of Design and Success pre-cuts to large numbers of low income people, such as a fertilizer supplier. This party is an
COMPLEX agent, selling insurance policies to the clients on behalf of the insurance provider (usually) in
exchange for a commission or fee.
Crop micro insuronco
Hoalth ;mcl ilisjfibility > Agency model: In this model the insurer uses its normal agency office and sells micro insurance
micro insurance products directly. The client comes to the agency office for sales and servicing of the product.
Wontlior micro insurance
Proporty micro insuronco > Provider -driven model: The healthcare provider is responsible for all operations, delivery,
Torm lifo micro insuronco design, and service. There is an advantage once more in the amount of control retained, yet
(paymont to bonoticiarios
SIMPLE on dofitH)
disadvantage in the limitations ofthe products and services.
> Micro-agent model: While the partnership model is relatively common, the micro-agent model
Source: Socio-Economic Imprint (Arora and Poonam,2009)
described below is distinctive. It is the invention of Tata-AIG, specifically an employee of Tata-
Table 4 - New Business under Micro Insurance Portfolio (Life) AIG. The central building blocks of the model are Rural Community Insurance Groups (CRIGs)
supervised by rural organizations such as churches, NGOs or MFIs. CRIGs are a partnership firm
Year Number of policies formed of five women from a self-help group (SHG).
Individual Category Group Category (Schemes)
Public Private Public
> Community-based/mutual model: the policy holders or clients are in charge, managing and owning
Private the operations, and working with external healthcare providers to offer services. This model is
2013-14 2205820 561359 5292 advantageous for its ability to design and market products more easily and effectively, yet is
164
2014-15 400341 416027 5417 disadvantageous by its small size and scope of operations.
79
2015-16 452291 458655 4844 153 Regulation:
Source: IRDA Annual Report, 2015 -16 India is one of the few developing countries in the world which has a special micro insurance act that
regulates the suppliers through its special agency for insurance regulation - the Insurance Regulatory and
Table 3 explains the trends in new business in micro insurance in life both in individual category and Development Authority (IRDA).
group category in India from the financial year 2013-14 to 2015-16. It is clear from the above that new
business has been decreased in 2014-15 from 2013-14 and in the year 2015 -16 it has depicted positive In December 1999, the Indian Parliament passed the Insurance Regulatory and Development Bill (IRDA)
trend. and IRDA Act came into force in 2000 which provided that any micro insurance product issued as per
regulations will qualify for rural and social sector obligations of the insurer. As per the Bill passed,
Distribution: insurance companies are obliged to conduct a certain percentage of their business in rural areas or with
An overwhelming proportion of micro insurance in India is provided as compulsory credit-life insurance marginalized groups. The obligation to enroll rural customers and form socially marginalized groups has
through aggregators such as MFIs, rural banks and cooperative banks. A significant amount of health cover created opportunities for partnership between NGOs and insurance providers. Recognizing NGOs, MFIs,
is provided through MFIs and cooperative health insurers also but much of this cover occurs by default- and SHGs as agents of micro insurance by the IRDA regulations, the rural insurance penetration has
by virtue of an individual being a member of, borrower from or other service user of the aggregator. Since increased. In addition, the IRDA regulations prescribe that these intermediary institutions as micro-insurance
aggregators are mainly institutions that are ineligible to become MI agents, only a small proportion (20%) agents should have a clean track record and by-laws with relevant aims, objectives, and accountability.
ofmicro-insurance in India is estimated to bc.distributed through agents. IRDA has recognized four categories Micro insurance Regulations, 2005: Micro Insurance Regulations 2005 clearly conveys the clarity on: i)
ofintermediaries: brokers, agents, corporate agents, and Micro-insurance (MI) agents. The micro insurance Product guidelines for Distribution, Design and Issuance of policy contracts, ii) Guidelines for Agents
agentcanbeaNon-Govcmmental Organization (NGO), MFI or other community organization such as Self
35
Appointment, Remuneration, Code of conduct, Capacity Building etc. iii) Guidelines for Life & non -life Table 5: Increase in Micro Insurance Gap 2010-2013
tie-ups: A life insurer may offer general micro insurance products & vice versa .iv) Mandate on covering
Rural and Social sectors R Trillion 2010 Insurance 2010 Insurance 2013 Insurance 2013 Insurance
Gap Gap Gap Gap________
Micro Insurance in South Africa:
Death Disability Death Disability
South Africa has one of the highest insurance penetration rates in the world, yet poverty rates remain high
Insurance Need 11,683 18,714 15,146 24,435
and low income groups still find it difficult to access financial services. The Financial Sector Charter,
which came into effect in 2004, was drafted by industry representatives and other stakeholders with the Actual Cover -4,426 -5,563 -5,867 -7,280
objective of “transforming the financial sector.” Disability Grant Cover 2,014 2,414
Insurance Gap 7,257 11,137 9,279 14,741
The industry has traditionally served mostly the high-income end of the market, and only recently started to
focus on ways in which to innovate (in terms of products and especially distribution) to better serve the Gap as a % of Need 62% 60% 61% 60%
low income market. In the traditional formal vacuum, a robust informal market of risk-pooling via mutual Source: True South Actuaries and Consultants (2013)
burial societies has developed. It is estimated that there are up to 100,000 such societies serving more than
4 million individuals, almost exclusively for funeral insurance. In addition, funeral service providers Players.
often self-insure even though they are not licensed for insurance purposes. There are 75 commercial long-term (life) and 97 short-term (non-life) insurers. No composite insurers are
allowed. The formal market is dominated by corporate insurers. On the informal side it is estimated that
Figure-4. Composition ofthe South African micro insurance market there are between 80,000 and 100,000 mutual burial societies serving between 4 and 8 million individuals,
as well as between 3,000 and 5,000 funeral parlors providing funeral cover - of which we estimate 50%
to do so formally, i.e. with underwriting by registered insurers, and 50% informally.
Micro
Insurance Products.
Lately, formal insurers have started to move down-market, focusing on innovations for more appropriate
products. This is partly due to industry associations’ efforts to create product standards for the purpose of
Formal Ml-80%
4 Informal MI -20%
J complying with the Financial Sector Charter. The criteria for these standards include fair charges, easy
access and decent terms (so-called CAT standards. The South African micro insurance market is distinguished
from most of the international experience in that voluntary insurance accounts for the majority of the micro
insurance market. Compulsory credit life insurance accounts for only about 22% ofthe total micro insurance
l
Funeral-49%
I
Complusory- 41% Funeral, Voluntary, market. This figure moves up to 41 % when only focusing on the formal market 10%.
Credit Life-40% Voluntary -59%
Life-9%, Asset-2% Mutual-100% The increasing prominence of credit life insurance is largely the result of the development of the micro
credit market in South Africa. Funeral insurance however still clearly dominates (at 72% of the total micro
insurance market and 93% of the voluntary market). The cultural necessity for a dignified (and thus costly)
Source: Fin Scope (2015), National Credit Regulator Consultations
funeral drives the demand for funeral insurance. Non-life and non-funeral life insurance have achieved
The diagram indicates: limited take-up among the poor, despite recent innovations and the introduction of housing, cell phone,
personal accident and other types of insurance targeted at the low-income market. Focus group insights
Usage.
indicate this to be a function of affordability and a lack of awareness of the value proposition offered by
Micro insurance usage in South Africa is estimated at 30% of adults - the highest among the African such products. The only asset based insurance product starting to achieve some voluntary take-up is cell
countries. Formal insurance accounts forjust more than halfthe market, with the rest being informal risk phone insurance. This reflects the rapid adoption of mobile telephony and the very important role played
pooling via burial societies as well as self-underwriting by funeral parlors not authorized as insurers. The by the cell phone as personal and business communication tool in the lives of the poor - a phenomenon
South African population currently exceeds 50 million (Index Mundi and Statistics South Africa, 2013), strongly supported by the focus groups.
and according to the Association for Savings and Investment South Africa Insurance Gap Study (ASISA,
2013), approximately 61% of the low-income households do not have any life and disability insurance to Distribution:
safeguard them against hardship. The following table illustrates the increase in micro insurance gap from In all successful micro insurance products, intermediation innovations have played an important role.
2010 and 2013. These include the use of the cell phone as communication and sales tool, as well as joint ventures with
II* 37
retailer chains and even with low income groups such as church networks or sports clubs as distribution > Though rural market in India has immense potential, lack of awareness, illiteracy, lack of interest,
channels. Innovation in micro insurance distribution has been made possible by the availability of a large insufficient infrastructure are the major reasons for the low rate of growth of micro insurance in
well developed retail network in South Africa, as well as a sophisticated payment system. Typically, there
rural areas.
are 4 business models to deliver micro insurance:
> The major risk factors contributing to the vulnerability of the poor are health problems, death,
> Partner-agent model, in this case, the partner is the insurer and the agent is an intermediary. The property loss, crop loss, climatic changes, enterprise risk, risk of debt and loan and the like.
partner takes responsibility for the design, pricing, and underwriting of products (as well as the
schemes long term solvency), whilst distribution, marketing and collection ofpremiums is delegated > The number of micro insurance policies sold by LIC in the rural areas had been on increase up to
to the agent. In rural settings, the agent will typically be an NGO or micro financer based in the the year 2000. After the entry of private players, the number of policies sold in the rural sector has
community, and as such they will have a good understanding of the community’s needs. decreased. There has been a decrease in the sum assured also.
> Provider-driven model, the policyholders will pay their premiums directly to the service provider > In case of non life micro insurance companies, New India Assurance Company was not able to
(e.g. a hospital) who in exchange will provide its services for free or with a co-payment. meet their obligations of low income people and now the company took steps to meet the same.
> Charitable insurance model, a charitable organization will take over virtually all of the > Total number of insurers increased from just 2 prior to globalisation to 52 by the end of the year
responsibilities of the insurer as well as subsidize the scheme. 2015-16. And number of micro insurance policies in 2015 - 16 was 452291 by LIC of India and
458655 by private sector companies.
> Mutual/cooperative insurance model, the responsibilities of the scheme are taken over by the
community, thereby making the insured and the insurer the same persons. The major benefit of this Micro insurance in South Africa
business model is that the package can better match the needs of the insured. > In South Africa, the importance of insurance is understood, but is not translated into behaviour.
Regulation: According to National Treasury, 74% of residents recognise the need for insurance but 34% haven’t
made plans to address the risks. Furthermore, a mismatch exists between what is perceived the
There are two main pieces of legislation that have a bearing on the insurance industry and, by extension, on
biggest risk (loss of income or job loss) and the dominant insurance product (funeral cover).
micro insurers: The Long-Term Insurance Act 52 of 1998, and the Short-Term Insurance Act 53 of 1998.
These Acts replaced the Insurance Act of 1943, which covered both short-term and long-term insurance. > Micro insurance doesn’t yet have a significant presence in South Africa (it is often bundled together
These pieces of legislation, together with the corresponding body ofregulations: i) govern the process and with other insurance products, not normally sold as a stand-alone product), but perhaps convenience
requirements for becoming legally registered as a short-term or long-term insurance provider (a single (in the form of cell phone applications) and affordability will encourage more South Africans to
insurance company cannot be both, though a short-term and long-term insurer can form part ofthe same purchase micro insurance and help alleviate the mismatch mentioned above.
group, i.e. as subsidiaries); ii) define what sort of services can be marketed as insurance; iii) stipulate
> Examples of Micro insurance in South Africa Go Cover by Sanlam “Go Cover is great for mountain
minimum absolute capital requirements (a minimum of R5 million, or $660 000, depending on the type of
bikers, trail runners, climbers, rugby players - and even bungee jumpers. In fact, any activity or
insurance business to be pursued) and capital adequacy rules; iv) establish certain reporting requirements;
sport. Use it when setting off on that road trip, taking a taxi ride, or for workplace protection. It
and v) institute and provide for certain consumer (policyholder) protection measures.
provides world-wide cover for South African residents and for foreign visitors while in South
Observations and Findings of the study: Africa.
Micro-insurance in India
> As with conventional insurance, micro insurance protects individuals from specific risks in exchange
> A Good portion of population is not aware of the presence, role and functioning of IRDA for the for premiums linked to the type and likelihood of the risk insured. However, micro insurance
control of micro insurance business in India and a good percentage of the policy holders are not contract lengths are generally shorter and more flexible, payments are more irregular, premiums
happy with the services rendered by IRDA.
are lower and coverage is smaller.
> The major reasons identified for low penetration of insurance in general and micro insurance in > Delivery of Micro insurance to clients is one of the biggest challenges that micro insurers face.
particular in India; especially in rural are low income of rural people, lack of awareness about
various micro insurance schemes, lack of interest and involvement of agents, illiteracy, lack of > The key to profitability in micro insurance lies in the business model. In order to be profitable, a
distribution network etc. “low-margin/ high-volume” philosophy must be adopted. Nevertheless, ifthey manage to maintain
a growth in revenue that is greater than the growth in incremental costs, they will achieve profitability
> Total density of insurance in India has enhanced from 11.5 percent in 2001 to 56.12 percent in through scalability.
2015 and insurance penetration in India increased from 2.71 percent to 3.84 percent in 2015.
n,
1
> “Looking at different products, credit life micro insurance programs are generally able to generate
a profit anywhere in the world. Having said this, breaking even for a new product may take a few 4. Baneijee, A. (2008). Technology indispensable in marketing micro insurance accessible. Asia Insurance
years, as is to be expected. For example, the endowment micro insurance policies sold by Tata- Review.Available at http://asiainsurancereview.com. , c
AIG were expected to break even in three to four years, assuming that the initial high growth rates
5. Christine H, Hennie B and Doubell C (2005), Making Insurance Markets Work for tjfe Poor: South.- <$//
and high levels of persistency continued.*’ Africa Focus Note - 6,2008 MA
> Micro insurers generally don’t allocate costs specifically to products purchased by low-income 6. Craig Churchill and Michal Matual (2012), Protecting the poor: A Micro Insurance Compendium, ILO
groups • A proper allocation of the associated costs and investment returns is not usually available (Mnich Re Foundation, ISBN 978-92-2-125744-8.
• Insurers generally aren't willing to provide the detailed information required to properly assess
profitability. 7. Fin Scope South Africa (2013). Making Financial markets work for the poor. Available at http://
www.finmark.org.za/event/launch-of-the-finscopesouth-aff ica-2013-survey-results/. Gray
> Beyond funeral insurance the general awareness amongst low income persons of the value of
8. Index Mundi (2013). South Africa Population. Available at http://www.indexmundi.com/south_africa/
insurance for other risks they face, remains low. Simply providing suitable products will therefore
not necessarily lead to substantial uptake of such products - they will have to be sold to clients. popuIation.html ILO
Conclusion: 9. Michael Alibu (2000) South African Micro Insurance Case Study Report, 2000.
10. Michael J. McCord and Katie Biese (2015), the Landscape of Micro Insurance in Africa 2015-
Micro Insurance policy is for low income clients living in rural areas; who are illiterate or not familiar
Preliminary Briefing Note, MI network (Murich Refoundation).
with insurance; who tends to face more risk compared to other class of society; more prone to illness due
to working in hazardous condition or malnutrition with little or no experience in dealing with financial 11. Meenakshi and Jerinabi (2015): “Risk Management and Awareness of micro insurance among rural
institutions. Two third of world’s poor are in India and hence there is a huge need to improve financial household”, Excel International Journal of Multidisciplinary management studies, Vol.5., Issue
security for these low income people in the country. However, in India insurance penetration is very low. No.9., pp.450-452.
The major reasons identified for low' penetration of insurance in general and micro insurance in particular 12. Micro insurance Network (2013). Publications. Available at http://www.microinsurancenetwork.org/
in India; especially in rural are low income of rural people, lack of awareness about various micro networkpubl ications.php
insurance schemes, lack of interest and involvement of agents, illiteracy, lack of distribution network etc.
13. Narender Naik (2015): “Promotion of Micro Insurance in Rural India”, International Journal of
Micro insurance in Africa is experiencing drastic growth. However, the market is still in its infancy, with Academic Research., Vol.2., Issue No., 3(5), pp. 164-170.
a market penetration of only 2.6% of the population living under $2 per day. Nevertheless, the number of
14. Oxfam (2013). Available at https://www.oxfam.org.uk/what-we-do/countries-we-work-in/south-africa.
people in Africa covered by a micro insurance policy increased more than 80% between 2005 and 2010,
with annual growth rates at over 10% in some countries. Accessibility is key, with cell phone technology 15. Preetidixit and Sanjeev Mahrotra (2015): “Role of IRDA in the field of micro insurance: An analytical
being an integral part of the delivery system of micro insurance to rural areas. study”, EPRA International Journal of Economic and Business Review, Vol.3, Issue No. 10 pp.89-
There is a need of designing financially sustainable models and increase outreach and scale up operations 93.
for poor in India and in South Africa. People belong to villages are still unaware about micro insurance 16. Ratna Kishore (2013): “Micro Insurance in India - Protecting the Poor”, Journal of Business
policies and the unique benefits these polices. So NGO, Agents and Micro Finance institutes should Management and Social Sciences Research, 2(3), March, pp 39-44.
communicate to them and share their view with villagers. Banks and other financial institutes should also
17. UNDP (United Nations Development Programme) (2013) MDGs (Millennium Development Goals)
take initiatives convert and build up professional system into social system for poor. Governments should
(2013). South Africa Country Report 2013. Republic of South Africa
provide support for the schemes of insurance providers and subsidies and packages to low income people.
18. World Bank (2012). Data.World Development indicators 2012. Available at data.worldbank.org.***
References:
1. Abou Mulima and Theo Louw (2017) South Africa Insurance Industry Survey Report, 2017
2. Annual Reports of IRDA 210-11 to 2015-16, www. irda.gov.in.
3. Ayandev Saha (2012): “Driving Efficiency and Growth in Micro insurance through regulatory
intervention- A Perspective” Pravartak: The Journal ofInsurance and Risk Managment,
II 40
41
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u.
555 Redefining Strategies For International Markets Redefining Strategies For International Markets
TRENDS IN BANKING INDUSTRY
1) Data Warehousing
*RakshaShenoy K
Lecture in Commerce, Department of Commerce MGM College Udupi 2) Data Mining
Introduction 3) Electronic Data Interchange

The Banking sector has been immensely benefited from the implementation of superior technology during 4) Corporate Web Sites
the recent past, almost in every nation in the world. Productivity enhancement, innovative products, speedy
5) Management Information System
transactions seamless transfer of funds, real time information system, and efficient risk management are
some of the advantage derived through the technology. Information technology has also improved the Current Information Technology Tools Apart from already mentioned technology, banks adopting various
efficiency and robustness ofbusiness processes across banking sector. India’s banking environment. Indian Information Technology Tools. They are:
banking industry is the midst ofan IT revolution. Technological infrastructure has become an indispensable 1) Electronic Clearing And Settlement System
part of the reforms process in the banking system, with the gradual development ofsophisticated instruments
and innovations in market practices. 2) Plastic Money
Bank:- An establishment authorized by a government to accept deposits, pay interest, clear checks, make 3) Electronic Banking
loans, act as an intermediary in financial transactions, and provide other financial services to its customers. Methodology:
Banking:- Banking can be defined as the business activity of accepting and safeguarding money owned by Data collection:
other individuals and entities, and then lending out this money in order to earn a profit. For the purpose ofthe present study, primary data was collected through a structured questionnaire. Fifty
respondents were randomly selected from various respondents of semi urban areas and other institutions
Objectives:
Present paper mainly aims at following objectives. are preferred for the purpose. For conceptual framework secondary sources of information were referred
from various journals of repute and also browsed the net.
1. To know the extent of usage in business of bank
Tools of analysis:
2. To know the presence of recent updates among employees of the bank Recent trends in banking industry is identified from the reaction of respondents. The systematic interpretation
has been drawn from finding of the study. Here authors have made an attempt to find the reality of IVCCill
3. To know the influence of recent trends used by customers of the bank
trends of banking adopted in business houses and households.
4. To interpret the data based on survey
Findings of the study:
RECENT TRENDS IN BANKING TECHNOLOGY:
Table 1: Age group ofRespondents.
Banking technology as a confluence of several disparate disciplines such as finance (including risk
management), information technology, computer science, communication technology, and marketing science. Age Group No. of Respondents Percentage
The tremendous influence ofinformation and communication technologies on banking and its products, the 25 to 35 14 28
quintessential role played by computer science helped in fulfilling banks’ marketing objective of servicing 35 to 45 22 44
customers better at less cost and thereby reaping more profits. Advanced statistics and computer science 45 to 60 10 20
are used to measure, mitigate, and manage various risks associated with banks’ business with its customers 4 8
60 and above
and other banks. The growing influence of customer relationship management and data mining in tackling 100
Total 50
various marketing-related problems and fraud detection problems in the banking industry is well documented.
In the above table it is interpreted that 28% of the respondents are young and 44% of them are in between
Technology Application in Banks Indian banking industry adopted various technology applications in 35 to 45 year old and 20% of them are aged between 45 to 60 and above 60 are very less respondents that
banking. They are classified in to:
is 8 % only.
43
Table 2:Usage of Mobile banking Table 6: Extent of safety
Usage ofmobilebanking No. of Respondents Percentage No. of Respondents Percentage
Daily 8 16 Satisfied 20 40
Monthly 14 28 Strongly dissatisfied 26 52
Weekly 18 36 To some extent 4 8
Never 10 20 Total 50 100
Total 50 100
With reference to above table it is interpreted that the percentage of extent of safety in ATM or mobile
In the above table, it is interpreted that 16 % of the respondents are daily users, 28% of them are monthly usage are having 40% of positive respondents, 52% are not alike and remaining 8 % conclude to some
users, 36% belongs to weekly, and 20% never use. extent.
Table 3: Features of mobile banking used among people for various purposes Table 7: Do you find strong customer support assistance from your banker in trouble
No. of Respondents Percentage No. of Respondents Percentage

Pay the bills 26 52 Very satisfied 28 56
Transfer money 14 28 Dissatisfy 22 44
Never use 10 20 Total 50 100
Total 50 100 The above table gives an inference about the feeling of CSR along with commercial activity. The respondents
of nearly 56% have been agreed to be very satisfied and remaining 44% of them dissatisfy.
In the above table it is interpreted that 52%f the respondents agree that pay the bills where as 28 % of the
people transfer money and 20% of the people never use. Table 8: Recents trends are used by people because we need not go to premise of bank
Table 4: ATM usage No. of Respondents Percentage
No. of Respondents Agree 24 48
Percentage
< 1 year 16 Disagree 14 28
32
1 to 2 years 4 Not sure 12 24
8
>3 years 30 60 Total 50 100
Total 50 100 In the above table it is interpreted that respondents agree the above cause to be convenient, where 48% of
the respondents agree that they are related but 28% of them won’t agree and 24% % were not sure about it.
In the above table respondents with usage was questioned, where the 32% of the respondents used since a
year 8% people using since 2 years and where as 60 % of the respondents more than 3years and till date. Table 9: Elimination of cash articles to bank with a great risk has been made to use recent activity
Table 5: Satisfied with the banking recent trends services. ofbank
No. ofRespondents No. ofRespondents Percentage

Percentage
Satisfied 30 Strongly agree 28 56
60
Not satisfied 6 To some extent 20 40
12
Notan user 14 Cannot be determined 2 4
28
Total 50 Total 50 100
100
The above table depicts respondents reaction about the risk in carrying cash, where 56% of the respondents
In the above table the reality is interpreted by the respondents through the usage of latest banking services
strongly agree to practice it where as 40% agree to follow it to some extent and 4% of them cannot form an
was questioned, 60% where the positive respondents, 12% of the respondents were dissatisfied and 28%
of them will never used or never attempted. opinion to follow or not.
44 45
Other private participants:
6) Point of Sale Terminal Point of Sale Terminal is a computer terminal that is linked online to the
computerized customer information files in a bank and magnetically encoded plastic transaction card
that identifies the customer to the computer. During a transaction, the customer’s account is debited
and the retailer’s account is credited by the computer for the amount of purchase.
7) Tele Banking Tele Banking facilitates the customer to do entire non-cash related banking on telephone.
Under this devise Automatic Voice Recorder is used for simpler queries and transactions. For
At Bharat '1 complicated queries and transactions, manned phone terminals arc used.
JBP Interface of ••-==«> j ,2S00 8) Electronic Data Interchange (EDI) Electronic Data Interchange is the electronic exchange of business
Sr Money ^ ; |HK se'hd money, j documents like purchase order, invoices, shipping notices, receiving advices etc. in a standard, computer
/ r press© processed, universally accepted formal between trading partners. EDI can also be used to transmit
financial information and payments in electronic form.
Recent Trends in Banking 9) A focus on mobile banking As smartphones become even more widely used, it’s no surprise that
1) Electronic Payment Services - E Cheques Now-a-days we are hearing about e-governance, e-mail, e- mobile-banking apps are increasingly popular. “For many people, mobile banking is the norm, especially
commerce, e-tail etc. In the same manner, a new technology is being developed in US for introduction ifyou skew younger, which is the future ofbanking,”
of e-cheque, which will eventually replace the conventional paper cheque. India, as harbinger to the
10) Belter payment security High-profile data breaches in the past year, including at JP Morgan Chase and
introduction ofe-cheque, the Negotiable Instruments Act has already been amended to include; Truncated Home Depot, have made cyber security an even hotter topic in banking, especially when it comes to
cheque and E-cheque instruments.
payments. EM V chips, which protect card data by encrypting it, will become standard in U.S. cards in
2) Real Time Gross Settlement (RTGS) Real Time Gross Settlement system, introduced in India since October. Named for its developers (Euro Pay, MasterCard and Visa), EMV technology offers greater
March 2004, is a system through which electronics instructions can be given by banks to transfer funds security than the vulnerable magnetic stripe and is already widely used outside the United States.
from their account to the account of another bank. The RTGS system is maintained and operated by the Many consumers not only welcome these improved security measures, but also support other methods
RBI and provides a means of efficient and faster funds transfer among banks facilitating their financial of ramping up privacy protection. Warshawsky says a recent Bank ofAmerica study showed that 60%
operations. As the name suggests, funds transfer between banks takes place on a ‘Real Time’ basis. of respondents said they were comfortable using a fingerprint to gain access to mobile banking apps,
Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the and about one in three were OK with retina scans and voice recognition as identity-authentication
responsibility to credit the beneficiary’s account within two hours. methods.
3) Electronic Funds Transfer (EFT) Electronic Funds Transfer (EFT) is a system whereby anyone who Conclusion
The banking today is re-defined and re-engineered with the use of Information Technology and it is sure
wants to make payment to anotherperson/company etc. can approach his bank and make cash payment
that the future of banking will offer more sophisticated services to the customers with the continuous
or give instructions/authorization to transfer funds directly from his own account to the bank account of
product and process innovations. Thus, there is a paradigm shift from the seller’s market to buyer’s market
the receiver/beneficiary. Complete details such as the receiver’s name, bank account number, account in the industry and finally it affected at the bankers level to change their approach from “conventional
type (savings or current account), bank name, city, branch name etc. should be furnished to the bank at banking to convenience banking” and “mass banking to class banking”. The shift has also increased the
the time of requesting for such transfers so that the amount reaches the beneficiaries’ account correctly
and faster. RBI is the service provider of EFT. degree of accessibility of a common man.
REFERENCES
4) Electronic Clearing Service (ECS) Electronic Clearing Service is a retail payment system that can be http://shodhganga. inflibnet.ac. i n/bitstream/10603/5600/11/11 _chapter%203 .pd f
used to make bulk payments/receipts of a similar nature especially where each individual payment is of
http://reports.choiceindia.com/KnowledgeCenter/KC 160220124.pdf
a repetitive nature and ofrelatively smaller amount. This facility is meant for companies and government
departments to make/receive large volumes ofpayments rather than for funds transfers by individuals. http://www.sjec.edu.in/pdf/Emerging%20trends%20in%20banking.pdf
.www.google.co.in/amp/www.livemint.com/Opinion/GivShcwWLIDCF7wORpmIrO/Six-banking-trends-
5) Automatic Teller Machine (ATM) Automatic Teller Machine is the most popular devise in India, to-watch-out-for-in-2017.html%3 ffacet=amp&utm_source=googleamp&utm_medium=
which enables the customers to withdraw their money 24 hours a day 7 days a week. It is a devise that referral&utm_campaign=googleamp
allows customer who has an ATM card to perform routine banking transactions without interacting http://rn.huffingtonpost.in/rajashekara-v-maiya/6-technology-trends-that-will-transform-banking-in-
with a human teller. In addition to cash withdrawal, ATMs can be used for payment of utility bills*
2017_a_21645614/
funds transfer between accounts, deposit ofcheques and cash into accounts, balance enquiry etc.
^1
47
46
E- BANKING: PERCEPTION OF BANKERS TOWARDS INTERNET BANKING
*Swathi P K **.Meenakshi S Data source:
Primary data was collected within the geographical location ofKamataka. Respondents were from Bangalore,
*Asst. Professor **Lecturer, Dept of Commerce and Management
Mangalore and Tumkur. Secondary data was collected from journals and newspapers.
Dr N S A M First Grade College, Nitte Yelahanka, Bangalore
Limitations of the study:
Introduction:
❖ Due to time constraint we have taken only 50 respondents
❖ Few public and few private sector bankers were taken into consideration as respondents.
The term “Banking Technology” refers to the use of sophisticated information and communication
technologies together with computer science to enable banks to offer better services to its customers in a Data analysis:
secure, reliable and affordable manner and sustain competitive advantage over other banks. From theoretical
Chart 1: Respondents’ bank
perspective, banking technology is not a single, stand-alone discipline, but a combinationof several fields
such as finance, information technology, communication technology, computer science and marketing science. Respondents' bank
A number of authors and experts have defined e-banking services as a contemporary facility that provides
conventional bank products and services through a new medium i.e. IT. The benefits provided by e-
banking medium have resulted into swift growth of banking sector worldwide. E-Banking concept has 32
developed and all banks have started enjoying their various advantages as reduced per transaction cost, is
enhanced customer service, raised long term returns by providing ‘anytime anywhere’ banking to the Public
Private
banking customers. The evolution of banking technology has been mainly driven by changes in distribution
channels as automated teller-machine (ATM), phone-banking, mobile-banking, pc-banking and most recently Chart 1 depicts bank of the respondents. 18 ofthe respondents are from private sector bank and 32 of the
internet banking etc. With the introduction of computer networks, a networked printing machine started respondents are from public sector banks.
replacing the manual update of statements. Then automated teller machines (ATMs) were introduced to Chart 2: Position of respondents in bank
facilitate withdrawals, deposits and even transfers accommodating mobility in much wider geographical Position of respondents
areas. Phone banking was a revolutionary concept in banking since it made banking accessible from
anywhere as long as phones were available. So in this study we have taken into consideration bankers’
perspective regarding E Banking, facilities provided by various banks, challenges faced and importance
of adoption of E Banking. 0BB 0
Indian scenario Branch cashier Clerk Others
manager
The traditional model for banking has been through branch banking. To cope with the pressure of growing
Chart 2 depicts the position of respondents in their banks. 15 of the respondents are branch managers. 12
competition, Indian commercial banks have adopted several initiatives and e-banking is one of them. The of the respondents are cashier. 16 of the respondents are clerks. 7 of the respondents are assistant
competition has been especially tough for the public sector banks, as the newly established private sector managers, attenders.
and foreign banks are leaders in the adoption of e-banking.
Chart 3: Opinion about E Banking
Objectives:
❖ To study the concept of internet banking Opinion about E banking
❖ To highlight the facilities given by various banks

❖ To study challenges faced by bankers’ for promoting E Banking
❖ To know the importance of adoption of E banking
Research methodology:
vital essential desirable
Questionnaire method has been adopted
!l48 49
Redefining Strategies For international Markets
Chart 3 shows opinion of respondents about E Banking. 8 of the respondents say that it is vital. 38 of then!
say that it is essential. 4 of the respondents say that it is desirable. Chart 6 represents methods followed to prepare customers for E Banking. 33 of the respondents say that
Chart 4: E banking services provided by their banks reducing charges and fees charged can attract customers. 20 of the respondents say that giving incentives to
E Banking users can attract E Banking. 21 of the respondent banks contact every customer personally to
E banking services provided by attract them towards E Banking. 13 of the respondents say that their banks still write a written communication
regarding E banking. 45 of the respondents say that Demo technique works well with their customers. 28 of
banks the respondents say that giving security to the customers while dealing with their transactions will attract
customers.
R B 0 i Chart 7: Acceptance of few challenges
Acceptance of challenges
■ Strongly agree iAgree Neutral ■ Disagree ■ Strongly disagree
Chart 4 shows E banking services provided by banks. All that is 50 of the respondents say that they have
got ATM, Debit and Credit card, M Banking facilities in their banks as a factor of E Banking. 40 of the
respondents say that they have telephone banking and 45 of the respondents say that they have NEFT as a
factor of E banking.
lilfllllBflJ
Chart 5: Advertising for E banking
//////
Advertising for E Ban Icing </,/ *°
* s s/ /
llll. Chart 7 shows the acceptance of few challenges. 20 of the respondents agree with the fact that cost of
adopting E banking is very high. 25 of the respondents say that they disagree with the fact that traditional
banking is still the best option for their customers. 36 of the respondents disagree with the fact that there is
no difference in profitability as compared to traditional banking. 20 of the respondents say that banks fear
that there are no proper laws for it. 35 of the respondents agree that there is no security in using internet for
E banking. 33 of the respondents agree that their customers are not aware of the proper usage of Internet
Chart 5 shows how the respondents’ bank is preparing its customer or advertising about E Banking facilities. banking. 37 of the respondents agree that most of the customers prefer face to face conversation. 20 ofthe
35 of the respondents say that they prepare their customer through sending their bank officials to their respondents disagree with the fact that bankers charge high fees for E banking.
customers in a particular location. 36 ofthe respondents’ bank advertise in print media. 33 ofthe respondents
advertise through television and radio. 38 of the respondents’ bank advertise through mails, websites. 5 of Table 1: Importance of acceptance of E banking concept
the respondents say that advertising can also be done through SMS alerts as well as customer references Strongly Agree Agree Neutral Disagree
chart 6: Methods followed to prepare customers E Banking services are faster than traditional banking 35 15 0 0
Access E banking services from anywhere 30 11 SL 1
Metliodsfollowed to prepare
customers More prestigious 20 11 15. 0
Avoiding many risks like robbery in physical handling 25 25 0 0
of large amount of cash
Table 1 represents the importance of acceptance of E banking concept. 35 of the respondents strongly
agree that E banking services are faster than traditional banking. 30 of the respondents strongly agree that E
Banking services can be accessed from anywhere. 20 of the respondents say that customers can feel that it
is more prestigious using E banking. All the respondents agree that robbery risks can be avoided.
51
■I
Findings of the study: E Banking. ATM is used by few banks for paying utility bills, depositing of cash and cheque other than
❖ Most of the respondents that is 32 were from public sector banks withdrawal of cash and checking balance. So if banks are going to make provisions for paying utility bills
❖ 35 of the respondents banks are large size banks etc, ifwill be a quite successful one. It is the duty of all bankers to make understand all their customers the
❖ 50% (25) of the respondents are working for their banks for more than 16 years importance of complete adoption of internet banking.
❖ 15 of the respondents are branch managers. 12 ofthe respondents are cashier. 16 of the respondents References:
are clerks. 7 of the respondents are assistant managers, altenders. • Uppal R K, “E-Age Technology- New Face of Indian Banking Industry: Emerging Challenges and
❖ 38 of the respondents say that it is essential to adopt E banking concept New Potentials”, Journal of Social and Development Sciences, Vol. 1, No. 3, April 2011, pp. 115-129
❖ All the respondents are already providing services of ATM, NEFT, all cards M banking • Kunukunju Benson, “Commercial Banks in India: Growth, Challenges and Strategies”, New Century
❖ ATM is used by few banks for paying utility bills, depositing of cash and cheque other than Publications, New Delhi, 2008, pp. 61-107.
withdrawal of cash and checking balance. • .Acharya RN, Kagan A, Sobol MG, Kodepaka V (2006) Competition and adoption of internet
❖ 38 of the respondents use online advertisement technique to attract customers. technologies by Texas community banks. E - Service Joumal4: 61-76.
❖ 5 of the respondents say that they use SMS alerts and other customer references to advertise their • Singhal D, Padhmanabhan V (2008) A Study on Customer Perception towards Internet Banking:
Identifying Major Contributing Factors. The Journal ofNapalcse Business Studies 5:101 -111.
products.
❖ Most followed method to prepare customers for E banking operation is demonstration through
banking officials which becomes more effective.
❖ 36 of the respondents disagree with the fact that there is no profit that is they are saying that there is
profit from adoption of E banking technique
❖ Most accepted importance of E banking is it is much faster than traditional banks and it can be
accessed anywhere and it avoids risk of robbery while handling with large amount of cash
❖ More customers demand ATM for the E banking transactions
Suggestions:
• Banks should take necessary steps to create awareness among its customers about the advantages
of e-banking services available in the banks especially in rural areas.
• Most of the customers have not availed of the e-banking services because they do not trust the
internet channel presuming it as complicated. So banks may set up a team of personnel to train the
customers to get acquainted with internet channel.
• The bank customers have perceived the risk of getting wrong information from internet banking
services. These illusions should be removed from the minds of the customers by bank people as
these factors are the barriers for most of the customers for not adopting these services.
• The duty of the bankers to inculcate the feeling of that e-banking is safe and secure. This can be
possible only when a banker take steps to have a separate on-line centre in their premises with
enough number of computers and uninterrupted internet facility.
Conclusion
Internet banking system is considered as the one of the great tools which is supporting many financial
institutions and customers to make many banking activities through online. Every day banks will perform
many activities regarding users which needs huge infrastructure with more number of staffs in all levels.
But internet banking has made the process simpler when compared to the traditional banking without
involving major portion of the staff. Security measure has to taken as this becomes a main disadvantage for
53
bmH
BANKS AND RURAL DEVELOPMENT
*Dr. RenukaK **Mr. Ravichandra, ManasChakrabarti,(2013) observed in his studythe commercial banks and the co-operatives, RRBs are
*Associate professor, Department of Commerce, Gokarnatheshwara College, Mangalore serving a class of clientele belonging to the rural poor like rural artisans, petty shopkeepers, small traders,
**Research Scholar,Development Studies, Kannada University Hampi village entrepreneur and people engaged in service sector and also people belonging to the lower income
group in these rural areas, physically handicapped persons and widows as well. These banks are playing
a significant role in ensuring sustainable development through financial inclusion.
India consists of more than 500 villages. It is known as a rural economy as around 70 percent of its
population resides in the villages. Rural development is to provide better infrastructure, agriculture Anil Kumar Soni and Harjinder Pal Singh Saluja,(2013)obscrved thatCooperativc banks belong to the
development,public health sendees, business and financial sendees in rural areas. Rural development has oldest forms of the collective action in India playingessential role in the realization of the agricultural and
been receiving increasing attention of the governments across the world. Banks have contributed a lot in in local development. They serve bothrural and urban population, and are main banks in India supporting
developing rural India. Regional rural banks were also created to meet the credit requirements of only development ofagriculture and rural areas,
weaker sections and small entrepreneurs.The RRBs were setup in 1975 as the ‘poor man’s bank’ or ‘low ManoharKacharuSanap,(2008) in his study,asserted that the rural banking in the economic development of
cost banks’ to supplement the efforts of cooperative and commercial banks. The RRBs since then have
a co untry cannot be overlooked. AsGandhiji said “real India lies in villages,” and village economy is the
passed through various phases and now have been recognized as integral part of rural credit delivery
backbone of Indian economy.
system in the country.
Swapan Kumar Roy,(2014) his study examined that,Rural development in India is very much needed for
Rural areas are facing major challenges today which arise mainly from globalization, demographic change the growth of Indian economy. Different approaches, strategies and programmes have been taken for the
and the rural migration of young, well-trained people. Policies for rural areas aim to contribute to upliftment of rural development.
development byrecognizing and making use of strengths and opportunities. Rural development implies
both the economic betterment of people as well as greater social transformation. In order to provide the Kanthimathinathan,(2016) found that,the RRB’s have been conceived to combine the strong points of both
rural people with better prospects for economic development, increased participation of people in the the cooperative and commercial banks eliminating the weakness of both. Thus, the RRB’s combine the
rural development programmes, decentralization of planning, better enforcement of land reforms and greater local base and the rural touch of the co-operatives with the organizational efficiency and financial strength
access to credit are envisaged. of the commercial banking system.
Objectives of the Study Rabi N. Patra, Mahendra P. Agasty,(2013) examined that, Credit is the most vital input for economic
activities in the rural areas and cooperative credit institutions are the main purveyors, other agencies being
The study aims at:
commercial banks and regional rural banks.
1. Throwing light on various programmes/policies adopted by the Government of India for rural
development through banks Patil S. K.,(2014) found that the RRBs since then have passed through various phases and now have been
recognized as integral part of rural credit delivery system in the country. The financial sector reforms that
2. To analyse the contribution of Nationalized Banks, Regional Rural Banks (RRBs),private
banks and co operativebanks to rural development. were introduced aimed at transforming the financial institutions including RRBs into organizationally
strong, financially viable and operationally efficient units.
Methodology
SeemaRafique .SatishManwani (2013)say that, the initiative taken by the RBI to set-up the Regional Rural
The study is based on secondary sources of data information. Different books, journals, newspapers and
Banks and other such banks to promote banking in the rural India has come as a boom for these areas. The
relevant websites have been consulted in order to make the study an effective one.
rural credit structure consists of priority sector and the non-priority sector.
Review of Literature.
Rural Development: Government’s Initiatives
A number of studies related to rural developmentofNationalized, RRB’S,Private sector, cooperativebanking
sector in India have beenconducted. Here, an attempt is being made to providean overview of various As on 30/6/2009 Economic survey report 2009-10 PA-58 from 1969 to 2009 total public sector banks
aspects and issues of this studythrough the review ofexisting literature. Some of themain studies selected including SBI and Associates, nationalized Nationalized and RRB having
for review have been discussedbelow.. 7,015(1969),61,446(2004),71,196(2009) Out of these 30,688 branches in Rural area. Other scheduled
commercial banks 1126,foreign banks 4,all scheduled banks 31,818, non scheduled commercial banks 11,
Uttam Kumar Saikia (2015)in his study observed that,the cooperative bank has to mobilize considerable all commercial banks 31,829 branches providing the services in rural area
deposits, allocate a good percentage of itsfunds to priority areas like agriculture and allied activities The
cooperative sector is more capacity building efforts on rural livelihoods in grassroots levels for better
bank-boiTower relationship, financial inclusion and social security in rural India.
55
■■ ■■
Rural Development programmes.
National Maternity Benefit Scheme NABARD has effectively brought in a number of innovations in the rural credit domains. Some of these
Programmes on Minimum Basic Needs
innovation are; Formation and linkage of SHGs, Farmers Club, Rural Infrastructure Development Fund,
Public Distribution System (PDS) Integrated Child Development Service (ICDS)
Watershed Development, Kisan Credit Card, District Rural Industries Project.
Rural Water Supply Programme BalikaSamridhiYojana
Rural Sanitation Early Child Care Scheme The Syndicate Bank has it grass roots in the rural sector. The development of the Syndicate Bank was in
Rural Electrification National Handicap Aid Programme accordance to the development of the banking sector in India and the Syndicate Bank has performed
Self-employment Programmes National Widow Grants in Aid Scheme actively in the development of the rural sector in India. The Regional Rural Banks in India has actively
Integrated Rural Development Programme Rural Housing Schemes contributed to the growth of the rural sector. The growth of the rural industries in India and the development
(IRDP) Indira AwaasYojana (IAY) of the rural business and economy have been dependent largely on the investment and financial aids
Training for Rural Youth for Self Employment MukhyaMantriAwaasYojana (MMAY) provided by the Regional Rural Banks in India. NABARD spent in the year 2014-15 19,665.74 crore and
(TRYSEM) Special Area Programme 2015-16 Rs 23,510.19 crore for Rural Infrastructure Development purpose.
Development of Women and Child in Rural Areas Drought Prone Areas Programme (DPAP) Cooperative sector:
(DWCRA) Desert Development Programme (DDP) The cooperation, which means living, thinking and working together to achieve a common goal through co
Swamajayanti Gram SwarozgarYojana (SGSY) Programmes on Education operative principles, envisages a group of persons with one or more common economic needs, voluntarily
Wage Employment Generating Schemes (WEGS) Schemes for Scholarship for Primary Education agreeing to pool their resources both human and material and use them for mutual benefit, through an
JawaharRozgarYojana (JRY) Mid-Day Meal Scheme enterprise / organization managed by the group itself in democratic lines. Co-operative Credit Societies
SampoomaGrameenRozgarYojana (SGRY) Adult Education or Neo-Literate Programmes Act was passed in 1904, paving the way for the establishment of co-operative credit societies in rural and
Employment Assurance Schemes (EAS) SarvaShikshaAbhiyan (SSA) urban areas. Under this Act, only primary credit societies were permitted to register and non-credit and
National Food-for-Work Programme (NFFWP) Other Programmes federal organisations of primary co-operative credit societies were left out. The co-operative banks in
National Rural Employment Guarantee Scheme Rajiv Gandhi National Drinking Water Mission India have a history of almost 100 years. The co-operative banks are an important constituent of the Indian
(NREGS) Backward Region Grant Fund (BRGF) Financial System, judging by their role assigned to them, the expectations they are supposed to fulfil, their
Social Welfare Oriented Programmes (SWOP) State Rural Business Hub (SRJ3H) number, and the number of offices they operate.
National Social Assistance Programme (NSAP) Rural Produced Marketing Centre (RPMC) Private sector banks:
AamAdmiBimaYojana (AABY) Sikkim Renewable Energy Development Agency Most of the private banks in India have not been able to meet the needs of the farmers although they are
RashtriyaSwashtyaBimaYojana (RSBY) (SREDA) expanding their rural and semi urban branch network .The Private sector banks have by and large stayed
National Old Age Pension Scheme PradhanMantri Gram SadakYojana (PMGSY) away from directly lending to small farmers and weaker sections in India’s far-flung areas. They achieve
National Family Benefit Scheme Model Village their priority lending obligations by buying out loans from non banking institutions or by investing in rural
The RRBs Act was enacted in 1976 when NABARD was not in existence. As a result, in the RRBs Act, there infrastructure development fund of the NABARD. As on 31 March 2011 in India, 13 old private sector
is no mention of NABARD. Since RRBs deal with rural credit and since institutions dealing in rural credit banks and eight new private sector banks are providing agriculture credit. During 1993-2011,8613 rural,
semi urban and urban branches to provideagriculture and rural credit in general. Private Banks with the
are the concern of NABARD, the responsibility of overseeing the overall functioning of RRBs devolves on
NABARD. The Government ofIndia has recently issued instructions to RRBs that all matters pertaining their help of 2489 branches 15,242 villages allocated its services in the country.
functioning interpretations relating the circulars earlier issued by Government of India etc. may be referred to Table 1 .Agency-wise Ground Level Credit Flow(Amount in crore)
NABARD and not to the Government of India .it is an apex Development Bank with a mandate for facilitating 2014-15 2015-16*
Agency 2011-12 2012-13 2013-14
credit flow for promotion and development of agriculture, small scale industries, cottage and village industries,
CommercialBanks 3,68,616 4,32,491 5,27,506 6,04,376 6,04,668
handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in
rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In RegionalRural Banks 54,450 63,681 82,653 1,02,483 1,19,261
discharging its role as a facilitator for rural prosperity, NABARD is entrusted with providing refinance to Cooperative Banks 87,963 1,11,203 1,19,964 1,38,469 1,53,295
lending institutions in rural areas, bringing about or promoting institutional development and evaluating, Total 5,11,029 6,07,375 7,30,123 8,45,328 8,77,224
monitoring and inspecting the client banks. The objective ofthe bank is to develop rural economy by providing
credit and deposit facilities for agriculture and other productive activities of all kinds in rural :iiv;in. It also Note: * Provisional
provides facilities to small and marginal farmers, agricultural labourers, rural artisans and other small Source: (1) NABARD (based on reporting by RRBs and cooperative banks)
entrepreneurs in rural areas. So the RRBs have been playing a catalyst role in the development of rural areas
II*
57
(2) Indian Banks Association (1BA) (for commercial banks, as reported to NABARD)
The agency-wise share of credit flow to the agricultural sector during the last five years is furnished ' 2011-12 36481 2,63,99,074 3,02,200.00 51,86,400.00
above table. Agricultural credit disbursement continues to be dominated bycommercial banks, foil owed 2012-13 37468 2,18,11,687 3,12,900.00 58,69,200.00
bycooperative banks and RRBs. 2013-14 38430 2,30,15,000 4,11,618.00 65,66,200.00
Table 2.Bank group -wise distribution of employee of Nationalized, RRB, Privatebanks. 2014-15 39627 2,23,99,000 4,02,526.00 69,35,300.00
2015-16 40643 2,34,65,000 4,64,418.00 86,21,200.00
Year Nationalized bank RRB Private bank
2016-17 (Tentative) 41402 2,48,21,000 4,96,174.00 98,36,400.00
2015-16 5,56,846 85,725 3,63,048
2014-15 5,74,591 87,010 3,19,050 Source: sahakarisindu website
2013-14 5,41,342 82,559 3,03,856 Table 4.List ofco operative as on 31-03-2017
2012-13 5,94,132 84,281 2,29,124 SI. No Particulars As on31 -03-2017(Tcntativc)|
2011-2012 5,82,029 83,382 2,02,746 I No. of Cooperatives 41,402
a) which working 36,345
Source: RBI website.
b) of which defunct 1,706
The bank group wise distribution of employee of nationalized bank RRB, Private Banks during the last c) of which liquidated 3,351
five years shows that in every year banks having maximum employees due to the extension of its bankin 2 Share Capital (Rs. in crores) 4961.74
8
activities and branches in rural area.
a) of which Govt 228.55
Co-operative institutions have played a vital role in the socio-economic development of the country, b) of which Members 4733.19
particularly in the rural areas and in agriculture and allied sectors. It is our firm belief and conviction that 3 Membership 2,48,21,000
the Co-operative Institutions will continue to play a key role in the economic development of the country
4 Working Capital (Rs. in crores) 98,364
and will become more relevant in the changing economic environment of liberalization of globalization.
Cooperative Movement is wide spread in all the developmental sectors like Credit, Marketing, Co nsumers, 5 Deposits (Rs. in crores) 64,634
Silk Industry, Dairy, Fishery, Horticulture, Sugar, House Building, Constructions of godown etc. 6 No. of villages covered by co-operatives % 100%
Table 3.Highlights of the registered growth of co operatives. 7 No. of cooperatives under Profit 24,619
No. of cooperative under loss 12399
(Rupees in lakh)
Source :sahakarisindu website
Year No.of Societies Membership (Actual) Share Capital Working Capital
1905-06 5 Acts implemented by Co-operation Department are,Karnataka Co-operative Societies Act, 1959 and
386 0.11 0.14
1925-26 Rules, 1960, Karnataka Moneylender Act, 1961 and Rules, 1965,Pawnbroker Act, 1961 and Rules, 1966,
1603 92,292 35.52 112.38 Chit fund Act, 1982. and Chit fund (Karnataka) Rules 1983, Karnataka debt Relief Act 1980, Karnataka
1950-51 5190 5,01,281 138.74 690.90 public money (recovery of Dues) Act 1980, Karnataka Agricultural credit operations and Miscellaneous
1975-76 22713 Provisions Act 1974Kamataka Souharda Co-operative Act, 1997 and Rules 2004, The Karnataka Prohibition
59,45,009 12,543.00 91,637.00
2000-01 29930 Of Charging Exorbitant Interest Act, 2004, Multi - State Co-operative Act (in part).
1,61,67,000 1,47,316.00 21,19,867.65
2005-06 32577 2,05,00,000 1,91,700.00 26,47,500.00 _
2007-08 33394 2,09,00,000 2,69,000.00 27,18,000.00 _
2008-09 34025 1,87,88,741 2,78,574.89 32,69,321.66
2009-10 34863 1,99,04,730 3,17,136.93 38,24,891.99
2010-11 35502 _____ 2J5,33,65I 3,47,900.00 41,35,500.00
■ ■
■ Redefining Strategies For International Markets
Table 5.Kamataka vikasGramina bank population group wise rural area branches for last Five years in
kamataka state. Conclusion:
In 1947 when India achieved freedom after British rule new era had begun for Indian population. The
Region District Bank Group 2016-17 2015-16 2014-15 2013-14 2012-13
independent India had initiated a planned policy right from the beginning and number of efforts has been
Southern Region Bagalkotc RRB 4 1 1 1 made by the country to free the nation from poverty and to eradicate socio-economic inequalities. Since
Southern Region Belgaum RRB 5 4 9 5 1 then economic development of the country has been the prime subject of our planners. Agriculture and
Southern Region Bejapura RRB 4 2 3 rural development has been on the priority agenda of our policy makers since independence and considerable
efforts have been made to develop the rural credit system as means of rural development .In this direction
Southern Region Dakshinakannada RRB 1 1 2
Five Year Plans laid the foundation for large scale public funded developmental activities in the country.In
Southern Region Dharwad RRB 2 3 2 the era of developing, traditionally banks have viewed rural areas as a segment purely in need of upliflment.
Southern Region Gadaga RRB 1 4 2 3 Its stress should be laid on deposit mobilization from agriculture sector itself to finance its own credit
Southern Region Haveri RRB 2 1 3 2 requirements. Banks offer joint guarantee basis loan to the agriculture sector with the village panchayat so
Southern Region Udupi that banks can concentrate more on rural farmers. NABARD, RRB, Co operatives banks are supplies the
RRB 1 1 2 1 maximum credit facilities to the rural development activities in the country so that they can highly participating
Southern Region UtharaKannada RRB 6 3 and financing in development of rural area. The main goal of establishing Regional Rural Banks in India is
Total 7 28 18 17 16 to provide credit to the rural people who are not economically strong enough, especially the small and
Source: RBIwebsite Data base. marginal farmers, artisans, agricultural laborers and even small entrepreneurs.
Reference:
Above table shows that Kamataka VikasGramina Bank has opened population wise its Branches in nine
1. SatyaSundaram I(1997),RuralDevlopment, Himalaya publishing house,Mumbai.
districts in the last five years as per the demand of the rural areas of southern region ofthe Kamataka state.
In the year 2016-17 it’s quite less number of branches opened because of the nationalized private sector 2. SaikiaUttam Kumar,(2014) Rural Development through Cooperative Banks: Achievements and
and co operative sector banks increases in its region. Hindrances in Sikkim, India.
Table 6.Syndicate Bank number of branches, employee,business per employee and profit peemployee of 3. SanapManoharKacharu, The Role And Responcibilities Of Regional Rural Banks For Rural
five years (Amount in millions) Development In India, Financial Management pp 191 -201.
Items 2008-09 2009-10 2010-11 4. Roy SwapanKumar(2014), Rural Development in India: What roles do NABARD &RRB‘s
2011-12 2012-13
No. of offices 2,343 play?,Journal of Business Management & Social Sciences Research, Volume 3, No.9, September
2,429 2,623 2,828 3,041 2014.
No. of employees 25,068 25,569 28,509 26,904 26,606
Business per employee 75.07 74.68 5 Palra Rabi N. AgastyMahendra P. (2013), Cooperatives, Agriculture and Rural Development: Role,
87.54 107.41 125.70
Profit per employee Issues and Policy ImplicationsIOSR Journal Of Humanities And Social Science (IOSR-JHSS) Volume
0.36 0.32 0.40 0.53 0.81 13, Issue 2 (Jul. - Aug. 2013), PP 14-25.
Source:RBI Bank profile.
6 PatilS.K(2014), Role of regional rural banks in rural development of India,Avishkar-
Table 7-Kamataka Bank number ofbranches, employee,business SoIapurUniversity Research Journal, Vol. 3,2014.
of five years per employee and profit per employee
(Amount in millions)
7 NABARD Annual Reports.
Iteams 2008-09 2009-10 2010-11 2011-12 2012-13
No. of offices 469 486 501 527 574
No. of employees 4,947 5,244 5,795 6,087 6,339
Business per employee 64.90 72.70 77.10 85.90 96.60
Profit per employee 0.50 0.30 0.40 0.40 0.50
Source:RB! Bank profile.
61
ISSUES AND CHALLENGES IN THE HUMAN CAPITAL MANAGEMENT Op
3. Importance of Human Capital Management:
SOCIAL ENTERPRISES IN INDIA Human Capital Management is essential for hiring, managing, training and retaining talented
*Mr.RamakrishnaShetty **Ms.Meghashree a)
and high performing employees.
*Assistant Professor Alva’s College, Moodbidri
Human Capital management plays an important role in the recruitment process. It ensures that human
resource professionals hire individuals who really deserve to be in the organization. Recruiting the
Introduction: right talent is of utmost importance. An individual who is not fit for a particular role will not be able to
The importance of educated manpower (human capital) as a source of progress and economic growth has contribute much in the long run.
long been recognized in the economic literature. Adam Smith (1776) was the first classical economist to
b) Human Capital management plays an important role in orienting a new employee to the system.
include human capital in his definition of capital. He included in the capital stock of a nation, the acquired
and useful talents of individuals because human skills increase the individuals, as well as, the wealth of c) It is essential for employees to upgrade their knowledge with time to cope up with the changing
society.Human capital is the quality of human beings in respect of productive work. It concerns the capacity situations. Human Capital Management helps in training the employees and making them indispensable
and ability to work. The capacity and ability of human beings to work is considered as human capital. Like resource for the organization. Motivate employees to take up special courses or online programs
physical capital, human capital helps in further production. Therefore, side by side with physical capital which would help them in their job. Employees who do not brush up on their skills from time to time
formation, human capital formation has also been playing a useful role in economic development. Since find it difficult to survive in the long run. Inculcate the habit of reading. Internet is also one of the good
this form is embodied in human beings, it can be viewed at two levels: individuals and social. At the options to keep oneself abreast with the latest developments.
individual level, the improvement in the productive capacity enables one to earn more. The deployment of
4. Benefits of Human Capital Management:
resources for improvement of the human factor has a social angle too. Since its formation it adds to the
a) Human capital management helps in extracting the best out ofemployees. It also plays an instrumental
productive capacity of the society, it can be treated as an investment in the functioning of the economic
role in increasing the efficiency of employees, making them an indispensable resource for the
system. Human capital is represented by the aggregation of investments in activities, such as education,
organization.
health, on-the-job training, and migration that enhance an individual’s productivity in the labour market.
More recently, this concept has been extended to include non-market activities. b) Human Capital Management enables the human resource professionals to hire the right candidate for
the right role. Talent Acquisition is one of the most crucial functions of an individual representing
1.1 Human Capital Management: Human Capital management refers to managing an organization’s
human resource vertical.
contribute effectively in the processes of the organization. In simpler words, upgrading the existing skills misunderstandings. Halfof the problems evaporate when colleagues discuss matters amongst themselves.
of an employee and extracting the best out ofhim/her refers to human capital management. d) Trainings and skill development activities are essential for upgrading the existing knowledge of
The key objective of every organization should be to train its employees so that they become efficient employees. Training program increases the efficiency of employees and eventually increases the overall
resources later on. In human capital management, organizations treat their employees as important resources productivity of organization. It is essential for every employee to keep himself/herselfabreast with the
that play an instrumental role in productivity of the organization. The development and management of latest developments in his/her field. Human Capital management makes an employee self- sufficient. It
individuals in line with their key responsibility areas not only make them an indispensable resource in the enables employees to adapt to changing situations easily. A well trained employee can bring better
future but also ensure their hundredpercentcontribution towards the organization. productivity than someone who is not trained.
2. Objectives of the paper: e) Human Capital Management highlights the importance of soft skills and personality development for
1. To know the meaning, benefits ofHuman Capital Management (HCM) and differences between HCM
employees. An employee who can speak well is always considered as a trouble shooter by his fellow
andHRM. workers. Do not hire someone who has poor communication skills. Someone with average
communication skills can still be considered.
2. To study the issues and challenges of HCM in Social Enterprises
f) Human Capital management helps the employees to improve in areas where they feel they are lacking.
3. To suggest tools to overcome challenges of HCM in Social Enterprises.
It not only benefits the employees but also the entire organization.
^1
63
5. Difference between HCM and HRM:
why companies find it difficult to retain talent by questioning certain fundamental assumptions held by
1. Human Capital Management has an ambiguous meaning but many associations, while Human Resource organisations, such as the role of Human Resources. Human capital management has become a critical
Management Systems has a definite meaning. issue across the globe. Even in a land of billion people, identifying the right talent, training them and
2. Human Capital Management is more of an approach and a strategy compared to Human Resource retaining them has become an uphill task. Some of the challenges are as follows.
Management Systems, which is the specific tool to Human Capital Management. • Limited supply of candidates with the right skills
• Challenges in recruiting and integrating younger employees
3. Human Capital Management can refer to the approach as well as the tool (which is also a computer
program like HRMS), while Human Resource Management Systems only refers to the tool being used. • Competitors recruiting some of the best people
• Providing attractive career paths in the industry
4. Human Capital Management is bigger and more involved in all aspects of Human Resource compared
• Difficulty in deploying experienced talent globally
to Human Resource Management Systems.
• Talent with the right technical skills lack flexibility and creativity
5. Human Resource Management Systems is more related to the computer side of Human Resources. • Understanding and forecasting talent availability in emerging markets.
Human Capital Management is more related to “how to do things.”
7. Suggestion for improvement:
6. HCM of Social Enterprises 1. Create employee profiles.
Over the years there has been a phenomenal growth in the number of social enterprises in India. This is Successfully managing employees in a workforce that is continuously growing is no easy feat, especially
partly a consequence of a new policy of the government to gradually withdraw from social development when employers can’t connect a name to a face. Getting to know employees is easier with individual
activities. The gap thus created is being filled by social enterprises. A social enterprise can be a ‘for- employee profiles. Regardless of the platform used, these profiles are a helpful tool for managing human
profit’ or ‘not- for-profit’ venture engaged in income-generating activities with an agenda of bringing capital. They allow managers to collect and store important employee information in one place while also
about a positive change in the society. While social enterprises are engaged in the development of people, encouraging sociability and comradery among coworkers.
it is rather paradoxical that they experience a variety of problems with respect to the management of human
resources within their enterprises. It is common knowledge that social enterprises perennially struggle 2. Streamline employee onboarding.
with various critical human resource issues such as getting employees at low rates of compensation, The onboarding process serves as a new hire’s first impression of a company, which stresses the importance
of having a smooth onboarding system in place. Technology plays a key role in simplifying HCM. It helps
providing growth opportunities for employees within the organization, retaining talent especially in the
employers store, track and manage new hire paperwork, create new hire tasks and monitor progress, as
middle management, providing clearly defined roles and tasks to employees, etc, leading to high attrition
and increasing the cost of acquiring and training new employees. well as foster socialization through online portals.
Unlike traditional onboarding methods, automated onboarding procedures can be used and referred to as
All social enterprises - irrespective of their size, type, sector or profit-orientation experience human
often as needed — saving companies both time and money on new hire training.
resource management issues of one type or another. As talent is rare, valuable, difficult and hard to substitute,
organizations that attract, select and retain better talent outperform those that do not (Barney and Wright, 3. Revive the performance review.
1998). Social enterprises, like other organizations, compete with each other to attract better talent, which • While the annual performance review isn’t dead, for many companies, it’s on its last legs. Luckily,
is further intensified by the fact that the talent pool available to social enterprises is often limited, since the there is a lot that can be done to save performance appraisals in an effort to better manage employees.
sector is not perceived to be glamorous and remunerative as the corporate sector. The high turnover of • For starters, employers should aim to keep the review process as simple as possible. This can
qualified employees in social enterprises has increasingly negative impact on recruitment, training, and eas ily be done by asking employees only key questions and focusing on core competencies.
service effectiveness. Filling a position in a social enterprise poses a significant challenge, given the lack I • Employers should also strive to build a regular feedback culture by incorporating self-ratings,
of competitive incentive systems in the sector. Vacant positions may eventually be filled, but with reduced i peer reviews and manager assessments into the HCM system. Encouraging feedback from employees
chances of obtaining qualified candidates, additional costs for employee training and development, and | and their peers can give managers a perspective on performance they might not otherwise get.
higher chances of service disruption. Therefore, it is necessary for social • Finally, automate portions of the performance review process with software. This way, more time
enterprises to think out-of-the-
box and try a variety of innovative strategies to overcome these problems. can be spent on other aspects of HCM.
7. Challenges in HCM: 4. Offer unlimited PTO
• Offering unlimited paid time-off is still new in the corporate world. In fact, only 1 percent of U.S.
Human Capital Management Challenges in India focuses on the Indian talent pool and identifies why companies currently offer unlimited PTO, according to the Society for Human Resource
companies are finding it difficult to identify, recruit, reward and retain talent. It provides an insight as to Management’s 2014 report on employee benefits.
64 65
•
Flexible paid time-off policies simplify HCM by eliminating the tedious process of calculating
Redefining Strategies For International Markets 1
vacation accrual and tracking employee absences. It’s also an attractive benefit to job seekers and HUMAN RESOURCE PRACTICES IN SMALL SCALE INDUSTRIES
boosts employee performance and morale. (With Special Reference to Davangere District)
*Mrs.Shwetha H **Dr.B.S. Subramanya
5. Embrace mobility in the workplace *Research Scholars, Faculty member, Department of Commerce and Management, GOVT. First
• With 1.75 billion smartphone users worldwide last year, as found in a 2014 report by eMarketer, Grade, College, Harihar.
it’s no wonder mobile applications are on the rise in the workplace. Using mobile in the workplace ** Professor in Commerce Management, Vidhyshram First Grade College, Mysore
has helped spur the improvement and management ofthe employee experience.
• Mobility provides employers and employees alike the flexibility to work from anywhere, at any Introduction:-
time (even while on the run). Let’s not forget that it also simplifies communication within the Small scale industry sector has emerged over five decades as a highly vibrant and dynamic sector of the
workplace by encouraging feedback and removing time zone and location barriers. With mobile Indian Economy. Today ,this sector accounts for about 95% of industrial units and is contributing about
40% of value addition in the manufacturing sector, nearly 80% of manufacturing employment and about
tools, employers and employees can integrate their personal and professional lives as needed.
35% of exports (both direct and Indirect) more than 34 lakh units are spread all over7500 items and
8. Conclusion: providing employment to more than 192 lakh persons.
Social entrepreneurs are special breed of leaders and they are recognized as such. This definition preserves Small scale industry is assumed to play an important role in creation ofemployment, promotion of exports
their distinctive status and assures that social entrepreneurship is not treated lightly. There is a need for and alleviation ofpoverty along with Industrialization. Because of its labor-intensive nature and adaptability
social entrepreneurs to assist civil society find new avenues toward socio-economic progress. to local conditions, it is considered as a vehicle for employment generation and industrial dispersion.
Small scale industries are comparatively labour intensive and thus create more employment opportunities
Entrepreneurship requires ample number of productive human resources with multiple skills for a sustained per unit of capital employed. This potential to create employment opportunity necessitates effective
period of time that can transform opportunities, provided by the economy, at the local, national and global management of labour force. The professional management of human resource under its fold would ensure
levels. Effective Human Capital Management in an organisation is possible only when there is effective scores of benefit both for the enterprises and human resource namely increasing productivity, prevention
planning and remuneration policy. ofaccidents, evolving sound wage policy, effective training, increasing morale and job satisfaction, checking
9. References labour turnover and absenteeism, managing labour indiscipline and effective grievance management etc.
Most of small entrepreneurs are ofthe view that professional management of human resources is applicable
• Nili, Masood (1997),Iranian Economy, Higher Research Institute on Programming and development only to large scale industries. Perhaps the limited size of work force employed in these industries and non
Press. existence of labour unions in a majority of these unions may not force them to think about the necessity of
adopting professional practice in regard to human resource spectrum. They are quite unaware ofnegativities
• Husz, M. (1998), Human Capital, Endogenous Growth and Government Policy, Peter Lang Pub. ciated with frequent recruitment, labour turnover, poor work performance, inadequate training facilities,
and poor wage payment of and so on.
• David, P., and J. Lopez (2001), Knowledge, Capabilities and Human capital ormation in Economic
Growth, Treasury Working Paper 01/13. Human resource is required for an organization to conduct different business activities. Without the support
ofhuman resource the organization cannot exist or operate effectively. Human resource includes managers,
• Todaro, M. P., and S. C. Smith (2003), Economic Development, Eight Edition, Pearson Education supervisors and offer sub-ordinate or employees. An organization has to forecast its manpower needs and
(Singapore) Pte.Ltd.
adjust its manpower planning and development prog rams.
• Komeijani, Akbar, and Abbas Memamejad (2004), Importance of Quality of Manpower and R&D in High Performance Work Systems:-
Economic Growth of Iran, Journal of Commercial Research, Vol. 31, P. 1-31 Some ofthe systems integrated with HRM practices are called high performance work systems (HPWS). Such
system is made up ofdifferent HRM practices in the fields such as: assessment, orientation, training, development
and enhancement ofcommunication and involvement ofemployees in the work and it targets to obtain a positive
answer on their behalf of HPWS of a consistent internal HRM practices. Many studies dedicated to HRM’s
impact upon the organization performance .assume that there are coordination and cooperation of employees.
HPWS contribute to the increase of the skills, to the people’s company trustworthiness and inspiration which in
their turn contribute to the sensitive increase ofthe company’s performances.
66
B Redefining Strategies For International Markets
HRM Profitable for Small Scale Industries:-
limited scale of operation. However, an efficient management of human resources is supposed to address
Few things are relatively understood concerning the needs and practices of SSIs -related to HR. In particular ’
most of fundamental issues and challenges in various domains of business units irrespective of the size of
the impact of human resource practices upon the SSIs has not been studied so much. Since it was noticed
the unit. Only a very limited study has been made in the human resources management aspect of SSIs in
that for big companies the HRM impact upon the performance is a positive one much higher authors have
Indian context. Therefore the present study intends to examine the status of human resource management
underlined the need for similar researches for SSI. The existent researches focus upon the managers’ practices in SSIs located in Davangere District, Karnataka. In other words, whether the human resource
perception on the importance and/ or the success ofthe Human Resource Practices. The main conclusions management practices exist or not; if they exist, whether they are professionally practiced or they arc
suggest that the enterprises / managers acknowledge the necessity ofHR practices in SSI’s. approached in a haphazard fashion is the problem that merits study.
Objectives Of The Study: Review Of Literature:-
The present study has the following objectives. Ramsey, Schoarios, and Harley (1) form this author says in their article he explains the link between HR
1. To explore and analyse the practices pursued in various dimensions of human resources and productivity and performance is improved by adopting HR practices.
management in the study units.
Chandler &McEvoy (2), According my Opinions that firms that invest in employee training engage in
2. To suggest suitable measures to tone up the functioning human resources management in the sample formal performance appraisal and link these to incentive compensation are likely to have lower employee
units. turnover, higher productivity and enhanced performance.
3. To analyse the sources of manpower used by the small scale industries for recruiting the required
Klaas, McClendon &Gainy (3), from this author says in their article he explains Formalized HRM practices
personnel
require considerable development costs and due to the tight supply of financial resources SSIs fear this as
4. To evaluate the training techniques being used at various levels of the employees. cost disadvantage. Thus, vision and knowledge of the owner/manager and limited time and resources play
5. To examine the Performance Appraisal system is existing or not? If existing, whether this system a role in keeping SSIs informal.
is open and self-appraisal based or is confidential.
Krishna Kishore, MousumiMajumdar, VasanthKiran (4) from the author says in their article that HR
6. To find out organization Development is proved to be beneficial if it is practiced in the Small
professionals to prove programs should be implemented the activities for the successful in the organization.
Scale Industries.
In this article we find the more opportunities in the SSI’s for doing probable HR practices. From this HR
7. To analyse the reduction in labour turnover. practices we know that Empowerment and employee engagement and organizational development is possible.
8. To analyse the Government policies towards SSI’s. HR practices implementation change the management programmes appreciation will helpful to the successful
Hypotheses: structures in the organization.
To meet the objectives of the study, the following hypotheses are postulated for empirical verification in Anna-Maria Grigore (5) from the author explains in his article we find that HRM is mostly Implementation
the study. Several arguments can be made expect a positive relationship between firm size and formulation is more profitable for small companies. The results about investigations shows move strong and positive
of HR practices. effective upon the productivity, so move innovation capacity will increase the small company’s profitability.
1. Small scale industries have informal HR practices, because they are less formalized in general. We find HRM practices will increase the high performance work system. It suggests that the HRM can
2. SSIs are less financial services and their rationality is more bounded. increase the ability of small companies it is worth the investments increase the company and employee
3. SSIs don’t have an HRM department or HR manager performance.
4. The area suffers from excessive and acute unemployment and underemployment probl Cl':!. Limitations Of The Study:
5. Persons suffering from underemployment are interested in taking up complementary jobs to uplift The present study on the small scale industries in Davangere District was not an easy task as the units are
their level of living. dispersed over a wide geographical area with unique characteristics, managed and run by persons with
6. There is a lack of innovations and entrepreneurship in the District. moderate level of education. The following are the main limitations of the study:-
7. There is no significant difference between rural and urban small scale industries in respect of > The present study is based on the reliability of the primary data.
problems faced while obtaining credit from the financial institutions.
> All the aspects relating to the small scale industries in Davangere District could not be covered in
Statement Of The Problem the present study leaving scope for further research in the field.
The key to the successful functioning of any entity hinges on the quality of man power employe
therein. However there is also a view that human
resources practices are not relevant to SSIs in a view of
68 ................... 69
Redefining Strategies For International Markets - •*
Significance Of The Study
The outcome of the present study is expected to throw light on HRM practices pursued in industrial units a) Traditional Industries:-
The suggestions made in this research may be of use to fine tune the human resources variety of the units Traditional Industries Include....
concerned. The workers might get positive benefits in the form of better wages, safety in work place, Up 1. Khadi and village Industries.
graded uniform, effective training, counseling and better work environment and so on. The results of the 2. Handlooms
3. Handicrafts.
study may educate the top levels of institutional frame work in small scale industries.
4. Coir
Scope of the study is restricted to the Davangere District, Since the Davangere district is the most suitable ^ 5. Sericulture
for this kind of research. In order to have adequate representation of all small scale industries, it planned b) Modern Units:-
to select few industries where the industries represent the Davangere District. The study is mainly opinioned 1. Small scale industrial undertakings.
based and relevant and necessary information is planned to collect to by way of opinion by administratin 2. Export oriented Small scale industrial units.
a well-structured questionnaire! 3. Ancillary industrial undertakings.
Small Scale Industries As Per Industrial Act:- 4. Small scale service and business enterprises
Small and medium scale enterprises (SMEs) are understood in India as enterprises where the investment 5. Power looms.
in plant and machinery or equipment’s is between Rs. 25 lakhs to Rs. 10 crores in case of a manufacturing According to the third small scale industrial census 62.13% of the units were engaged in manufacturing /
industry and between Rs. 10 lakh to Rs. 5 Crore in case of a service sector enterprise. assembling / processing, 7.54% in repairs and maintenance and 30.33% in service activities of the total
Meaning Of Small Scale Industries:- small scale industrial units 97.8% were tiny units. 0.67% were export oriented units.
A small scale enterprise is a privately owned and operated business, characterized by a small number of Importance Of The Study:-
employees and low turnover. A small enterprise usually only shares a small segment of the market it
operates in. Small scale industries are best suited to this city as they require less capital, low level of technical skill
and use local resources. It has been seen that the shifting of people from the traditional agricultural sector
A small scale Industry is a project or firm created on a small budget or for a small group of people. A small leads to unemployment, underemployment and disguised unemployment in the economy. The number of
scale industry produces its goods using small machines, less power and hired labour. It is located within a jobless persons is increasing year after year. People who came out of the agriculture sector, search jobs in
single place and produces goods Meant for few people. Government offices and other non-government agencies but they cannot be absorbed suddenly due to lack
Small Scale Industrial sector is one of the most vital sectors of the Indian Economy in terms of employment of vacancies and so remain unemployed.
generation, the strong entrepreneurial base it helps to create and its share in production. There is a problem of educated unemployment in the state, a large numbers of youths coming out from
colleges and universities every year are hanging around without any permanentjob. So far this section of
Small scale Industry is an independently owned and operated company that is limited in size and in
revenue depending on the Industry. this work force is concern, stating small scale industry is best suited as their career. This is the reason why
people in the city having no other substitute job are trying to enter into this sector of the economy.
Definition of small scale industry:-
The present study aims to provide a concrete and proper ideas and information about all the factors
Prof. K.T. Sash was the first Indian Economist, Who realizing the importance of small scale industries in
India, tried to give a workable definition ofthese industries. He defined “A small discussed above. This work may prove to be the pathfinder to the new generation who are roaming here
scale or cottage industry and there and chasing after common people, the policy makers, government officials, and researchers and
may be defined as an enterprise or series of operations carried ii
by a workman skilled in the craft on his also to other non-governmental organizations who are engaging themselves in the upliftment of the poor in
responsibility, the finished product of which he markets himself.”
particular and the socio economic development of Davangere District as a whole.
Classifications of small scale industries:-
This factor covers a wide spectrum with two clearly identifiable segments that is, modem small scale HR practices can play three major roles these are:
industries, including tiny units and power looms and traditional industries like Khadi and village industries, i. Building critical organizational capabilities,
Handlooms, Handicrafts Sericulture and Coir Industry. Both the segments have their own special ii- Enhancing employee satisfaction,
characteristics in terms of capital / labor intensity, locational, orientation, manufacturing process and skill iii. Improving customer satisfaction.
requirements. difference in the working efficiency of the organization. They enhance
Good HR practices do make a
internal capabilities ofan organization to deal with current offuture challenges to be faced by an organization.
70 71
Good Human Resources practices also promote the wellbeing of the employees of the organization. Th^l information. Differences between competitive SSIs in regard to appearance in regard to and functionality
commitment and motivation built through good Human Resource Practices can lead to hard work and can of products are decreasing. What differs SSIs more and more are their employees, i.e. their relation to
have a very good influence on the organization. This system, comprising ofgood HR practices can create a clients, the way they solve problematic situations, speed of their reaction / response, motivation, ability to
sustainable and lasting capability of the organization to manage itselfinternally and face external challenges learn, etc.
HR Practice include:- At the beginning of the 21st century, with dizzying development of information and communication
> HR Planning > Recruitment & Selection technologies, human element became the single element which the competition could not copy. Since
> Induction > Training & Development employees have very important role in SSIs which is aspiring to be distinct from competition, human
> Performance Appraisal > Career Planning resource management as more important role in planning and realization of SSIs success compared to the
> Fringe Benefits > Reward & Recognition past period. Strategy of human resource management has gained importance since the employees now are
> Welfare Activities as per Statutory Requirement > Safety, Health and Environment Policy the most important factor of development. Intellectual capital, knowledge and competence of employees
> Suggestions Scheme > Promotion & Transfers cause success or failure of SSI in dynamic environment. Human resource management is potentially business
> Exit Policy function which has become a key element of the strategy of every SSI in their efforts to establish and
maintain their competitive edge on the market. In recent years, Human Resource Management gain special
HR Practices have a continuing and significant influence on the working output of the employee. The best
significance, in theory and practice of SSI management. Many SSIs are included in skills of human resource
practices in the in the should cope with challenges such as an increasing number of employees, encountering
management and they pay more attention to development of their human potentials than ever before. Because
new working environments, cultures, restructuring and the pervasive and often deleterious effects of
of sudden changes and concrete conditions, human resource management is perceived as strategic factor
technology. The changing Practices in Human Resources will be useful to the organization, as it will
influencing not only the success of SSI but also of nations.
reduce the expenditure on the employee while increase his productivity. Therefore it is expected of the HR
managers to implement these changes effectively for the betterment of the organization. By implementing Human resource management relates to practice and policy necessary to execute all management tasks
some of the innovative HR practices, the quality of internal organizational processes improves dramatically. relating to personnel issues, especially employment / hiring, education, evaluation and rewarding of SSI
employees and provision of safe and ethically acceptable and just / fair environment for them. Beside
Key practices to help achieve results in HR operations include:
others, these practices and policies are the following:-
> Establish an operational excellence team to drive continuous improvement.
Define standard operating procedures to provide consistency across the HR function. > Work analysis (determination of the nature ofwork of each employee),
> Manage processes from end-to-end > Planning ofwork places and recruiting ofcandidates for the job,
> Rationalize HR applications > Selection of candidate for the job,
> Develop training programmes to emphasize continuous learning > Direction and education of new employees,
> Establish rigorous governance processes for improving financial discipline and accountability to > Evaluation ofthe efficiency / output,
improve discipline and compliance > Management of the employees’ salaries,
> Measure HR’s performance against industry benchmarks > Providing incentives and benefits for employees,
> Communicate and add more value to the organization by adopting strategic moves. > Communication with employees,
> Education and improvement of employees,
There are no single best practices in HR which HR system that is peculiar to that organization itself. “Best > Creation of the spirit of dedication in employees.
Practices” in HR are different and changing for different. What is best for one company may not be best for
another. “Best Practices” is not a set of distance actions but an approach to organizational management. Why are stated concepts and techniques important for managers? Answer is relatively simple, if manager
does not follow with certain procedures, sum of the following mistakes can easily occur:-
Human Resource Practices in Small Scale Industries:-
Every owner of small scale industries aspires to have successfully organized enterprise which is competitive > Hiring of wrong persons,
on the market and realized high profits with employees which have high level ofmotivation in regard to the > Increased fluctuation of employees,
successful operating of the enterprise. Differences in competitiveness between SSIs today are significantly > Employees who are not doing the best they can,
different compare to period twenty years ago. The importance of factors such as technology, finances, ; > Enterprise can face the problem due to non-compliance with loss regulating protection of the
production process and similar is diminished, whereas more important sources of additional and newly 1 employees at the work place,
created value of SSIs are their employees with their intellectual capital / assets, skills, creativity and | > Inadequate training of employees can endanger realization of tasks set by the management.
'1
73
*
m Redefining Strategies For International Markets
❖ Performance appraisals and other perks are keys to happy employees: The employees are always eager t0 Role of HRin Employees Retention
know whether they’re delivering according to their manager’s expectation. For them to be assured of their work
❖ Exit Interv>ew ’ Everyone needs a job for their livelihood and for their future prospectus. So, no
the managers'need to have regular performance review meetings and constant coaching and feedback should be employee leaves his/her job without a reason. If an employee wants to leaves his/her job and
provided. Create realistic goals for the employee during appraisal and strengthen the bond shared with the resigns from his present assignments, then it is the responsibility of the HR department to interview
employees so that they work harder to achieve their goals. Having an appraisal once a year is not enough to keep the respective employee and find out the reason for leaving the job and the organization immediately.
the employees motivated, keep all factors in mind and try to conduct appraisals more than once a year.
Finding the Reason for Leaving ” Finding the reason, why an employee is leaving the organization
•> Ease employees’ work-life balance: Due to the constant challenges that employees face day in and day out, is very important and should be known for avoiding future employee exits. Hiring is a tedious
it seems impossible for them to not think about work after leaving office. Most overworked and exhausted process and it is really very difficult to recruit the right candidate and train him once again.
employees talk about work-li fe balance Employers are not solely responsible for the employee’s work-life balance. ❖ Hiring the Right Resource ” The HR person must ensure that he is recruiting the right employee
But, they can mend their policies to make sure they support it. who actually fits into the role. A right person doing the wrong job would never find his job
interesting and certainly look for a change. Make sure every individual has been assigned
❖ Come up with appropriate training programs for employee growth: Hiring the right candidates is just responsibilities according to his specialization and interest.
work half done, it’s what comes after hiring that matters. Training the employees constantly according
to the new developments in the company is what will keep them from leaving. This is one of the most ❖ Employee Motivation ” The human resource department must conduct motivational activities at
challenging employee retention strategies that would require continuous effort from the employers for the workplace. Organize various internal as well as external trainings which help the employees
to leam something extra apart from their routine work. Make them participate in extracurricular
arranging training at regular intervals.
activities important for their overall development. Encourage them to interact with each other so
that the comfort level increases.
❖ Cultivate Team Spirit: This is the most powerful arrow in the employee retention strategies quiver which needs
tactful management. Introduce the employees to a culture where they can share their thoughts about topics under * Reward the Performers ” The HR must launch various incentive schemes for the top performers
discussion without hesitation. This will bring out different work cultures to the table and encourage them to be to motivate them. This way the employees feel important for the organization and strive hard to
true to their work styles. perform even better the next time. The employees who show promise should be awarded with
cash prizes, lucrative perks and certificates to make the individual stand apart from the crowd.
Retention challenges
❖ Job Rotation ” Performance reviews are a must. The HR along with the respective team leaders
Employee retention refers to policies and practices companies use to prevent valuable employees from
must monitor their team member’s performance to ensure whether they are enjoying the work or
leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies
not. The employees look for a change only when theirjob becomes monotonous and does not offer
in the competitive marketplace. Not too long ago, companies accepted the “revolving door policy” as part any growth or learning. Job rotation can be one of the effective ways to retain employees.
of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses
often find that they spend considerable time, effort, and money to train an employee only to have them An HR professional must try his level best to motivate the employees, make them feel special in the
de\ elop into a valuable commodity and leave the company for greener pastures. In order to create a organization so that they do not look for a change.
successful company, employers should consider as many options as possible when it comes to retaining Objectives of the study:
employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in To understand the essential factors of attrition
the future. Employees need to be retained because good, faithful, trained and hard working employees are To suggest activities to be undertaken in order to decrease attrition and retain employees
required to run business. They have acquired good product knowledge over the long run and a trained To improve the situation and conditions and situationofemployees for retaining talents
employee can handle customers better and also solve problems of peers who are new to the organization.
r ^ aneTl0> ^ ^ CS hC ^ uCS 3Way Wl,h h'm 3,1 C°mpany ,nformation such as ongoing projects, etc. Thescoôfthis^tudy is confined to Industries in South Canara. The study throws light through valuable
Good"111 of the company gets hampered due to more employee turnover rate and the competitors start suggestion to decrease attrition level in the organization. This study can help the management to find the
poking their nose to recruit best talents from them. Efficiency of work is hampered to a large extent. Let me weaker sections the employee feels towards the organization and also helps in converting those weaker
give you an example - Ifan employee leaves in the middle of an ongoing project its very difficult to fill that sections in t0 stronger by providing the optimum suggestions or solutions. This study has a wider for scope
Vacuum and a new employee can never replace an old and talented employee so this leads to delayed in any kind of organization since “attrition” is general one and makes the employees to put forth the.r
completion ofprojects and less work satisfaction among other team members practical difficulties and need factors in the organization.
II 77
M Redefining Strategies For International Markets Redefining Strategies For International Markets
Methodology: Three studies incorporated attitudinal and/or behavioural changes over time to better predict turnover.
Human Resource employees werethe main source of primary' data. It was collected from the employ^ j Sturman and Trevor (2001) found that quitters’ performance over time did not significantly change while
wodicing in different concerns through a well-structured questionnaire. As the area of study is limited in I stays’ performance slope was positive. Demographic factors cannot be ignored as age, tenure, level of
South Canara district of Karnataka and as the human resource employees are few, the researcher has education, level of income, job category, gender have influenced employee retention and have been found
proposed the random sampling techniques for the selection of respondents. Finally 50 respondents were
to have stable relationship with turnover intention.
selected and included the study. The Secondary data is collected through Journals on the internet.
Analysis and interpretation
Limitations of the study 1. For how long have you been working in this Organisation?
❖ Time was the crucial factor Particulars No of Respondent Percentage
❖ The responses may be quite casual. This may be due to lack of interest Less than a year 05 10
❖ The study has been taken in some of the industries in South Canara, it may not be applicable to 1-5 year 17 34
other industries located in other parts and other type of industries like service sector etc. More than 5 years 28 56
❖ The study gives the opinion of industries only in South Canara Total 50 100
Review of Literature:
The decision of leaving the Organization is not easy for an individual employee as well as significant
601
50
40
energy is spent on finding new jobs, adjusting to new situations, giving up known routines and interpersonal
30 ■ No of Respondent
connection and is so stressful (Boswell, Boudreau and Tichy, 2005). Therefore if timely and proper
20
! ■ Percentage
measures are taken by the Organizations, some ofthe voluntary turnover in the Organization can be prevented.
The reasons for employee turnover may vary from external environmental factors such as economy that
10
1
Lessthan aJeSvlaarthan 5years
influence the business that in turn affects the employment levels (Pettman 1975; Mobley, 1982, Schervish,
1983; Terborg and Lee, 1984) to Organizational variables such as type of industry, occupational category,
Interpretation: 17% of the respondents were rking in the organization from 1-5 years, 28% were
Organization size, payment, supervisory level, location, selection process, work environment, work
assignments, benefits, promotions and (Mobley, 1982; Arthur, 2001). wo rking for more than 5 years and 5% were working less than a year.
2. Is this your first job?
Any of the above factors could be the reasons, but the decision process to leave or stay in the Organization Percentage
Particulars No of Respondent
is to be periodically examined to understand the specific reasons that prompted them to take such a step
and the Organizations should be mainly concerned about voluntary turnover and not involuntary turnover Yes 16
as it is within their control. Also it is found that employees who perform better and are intelligent enough No 34
have more external employment opportunities available compared to average or poor performance 50
Total
employees and thus they are more likely to leave (Trevor, 2001).
When poor performers, choose to leave the Organization, it is good for the Organization (Abelson
&Baysinger, 1984), thus it is important to differentiate between functional and dysfunctional turnover and
accordingly encourage or discourage employee turnover. Further voluntary turnover of critical work
force is to be differentiated into avoidable and unavoidable turnover (Barrick& Zimmerman, 2005)
Estimates of the loses for each employee vary from a few thousand dollars to more than two times the
person’s salary depending on the industry, the content of the job, the availability of replacements and other aid that attrition was a threat to their organization, 16% said no
factors (Hinkin& Tracey, 2000) Interpretation: 19% of the respondents s was a large effect
effect, 08% said medium effect and 07% said there
■ ■ ■ 79
if
3. How much do you think attrition is a threat to your organization? 5. How much docs attrition affect your organization?
Particulars No of Respondent Percentage Particulars No of Respondent Percentage
To a large extent 07 14 Highly effective 12 24
To a medium extent 08 16 Affects but manageable 26 52
To a small extent 19 38
Unmanageable 05 10
No effect 16 32
No effect 07 14
Total 50 100
Total 50 100
60
1
50
40
■ No of
Respondent
□ Percentage
i\jM ■n ■ No of Respondent
y / / / ■ Percentage
/,/ / *
Vv
Interpretation: 19% of the respondents said that attrition was a threat to their organization, 16% said no Interpretation: 12% of the respondents said that attrition was highly effective, 26% said it affects but
effect, 08% said medium effect and 07% said there was a large effect
was manageable. 05% unmanageable and 07% said no effect.
4. What are the reasons for employee’s attrition 6. What kind of strategies do you adopt to control attrition?
Stress and improper work life balance 18 36 14 28
Good salaries
Better salary 19 38 Excellent working conditions 12 24
Own business 08 16 16
Better quality of work life 08
Can’t get along with Superiors 05 10 18
Good incentives 09
Total 50 100
Better promotion policies. 07 14
50 100
Total
No of Respondent
■ No of Respondent
■ Percentage
■ Percentage
Stress and Better Own Can’t get
improper salary business along with
work life Superiors
balance
Interpretation: 18% of the respondents were of the opinion that stress and improper life balance was the Interpretation: 14% ofthe respondent said that good salaries was their strategies to retain their employees,
mam reason for leaving the job, 19% better salary, 08% own business and 05% couldn’t get along with 12% said excellent working conditions, 08% better quality life, 09% good incentives and 07% better
Superiors.
promotion policies.
■ ■ ■ 81
80
7. How do you cover the gap which is developed after a poor period of attrition?
9. Has attrition decreased due to adopting retention policies?
Training 13 26 Yes 20 40
Incentive 15 30 No 13 26
Overtime 12 24 Due to some extent 17 34
Package 06 12 Total 50 100
Free accommodation 04 08
Total 50 100
m
40 -l
■: iU ■ No of Respondent
■ Percentage
30 ]
20
10 1
0
JflJ
Yes No Due to
■ Mo of Respondent
a Percentage
some
extent
Interpretation: 20% of the respondent were of the opinion that attrition has decreased due to adopting
Interpretation: 13% of the respondent said that the gap covered due to attrition will be through training, of retention policies, 13% said no it has not, and 17% said no effect.
15% said through training, 12% said overtime,06% said Package and 04% said Free accommodation. 10. Which method do you formulate retention policies
8. What retention strategies have you followed to retain key performers Particulars No of Respondent Percentage
Particulars Own 29 58
No of Respondent Percentage
Bench marking 21 42
Conveyance charges 19 38
Total 50 100
Promotion 16 32
Hike in salaries. 15 30
Total 50 100 60
ll
50
40
No of Respondent
30 Percentage
■ No of Respondent 20
Percentage
10
0
Benchmarking
Own
Conveyance Promotion Hike in
charges
Interpretation: 29% of the respondents were of the opinion that they will formnlate their own retention
Interpretation: 19% of the respondent said in order to retain the key performers they would give them policies while remaining 21% will go for benchmarking.
conveyance charges, 16% said promotion and 15% said hike in salaries.
83
/
Redefining Strategies For International Redefining Strategies For International Markets
11. Other reasons that attract job seekers References:
No of Respondent Percentage
Particulars
28 Employee’s retention - The role of HR by Employees tutorial
Reputation ofthe firm 14
16 32 Employee s retention strategies that prevent attrition by AdiBhat www.ngdata.com
Salary offered
12 24 Attrition Issues and Retention Challenges of Employees Brijesh Kishore Goswami, SushmitaJha
Challengingjob
Working condition 08 16
Abelson, M., B. Baysinger (1984), “Optimal and dysfunctional turnover: Toward an organizational level
50 100
Total model,” Academy of Management Review, Vol. 9No.2, pp. 331-341.
Barrick, M.R., & Zimmerman, R.D.,(2005), “Reducing voluntary turnover, avoidable turnover through
55 selection,” Journal ofApplied Psychology, Vol. 90, pp. 159-166
III
30
25 Boswell, W.R., Boudreau, J.W., &Tichy, J., (2005), “The relationship between employee job change and
20 a No of Respondent job satisfaction: The honey moon- hangover effect,” Journal of Applied Psychology, Vol.47, pp.275-301.
15 Cornell
■ Percentage
Hinkin, T.R., & Tracey, J.B.,(2000), “The cost of turnover: Putting a price on the learning curve
Hotel & Restaurant Administration Quarterly, Vol 41, pp. 14-21.
0
and Control. Addison-Wesley Publishing,
Reputation of Salary Challenging Working Mobley, W. H. (1982). Employee Turnover: Causes, Consequences,
the firm offered job condition
Philippines.
Interpretation: 14% of the respondents were of the opinion that reputation of the firm would attract job Pettm an, B. O., (1975), “Labour Turnover and Retention,” John Wiley & Sons, New York.
seekers, 16% salary offered, 12% challengingjob and 08% working conditions. Schervish, P.G. (1983), “The stru clural determinants of unemployment, vulnerability and power in market
relations,” New York: Academic Press
and job satisfaction in
Findings: Trevor, C.O. ((2001). “Interactions among actual ease-of-movement determinants
The above analysis concludes that the employees were facing problems due to which they left the prediction ofvoluntary turnover,” .Academy ofManagement journal, Vol 44, pp.621 -638
the company.
Many employees who left the job were from Marketing Department
Some of the employees left the job due to Stress and poor working conditions, to start their own
business and could not get along with their superiors.
Suggestions:
❖ The companies can try to retain key talent by hiking salaries and other perks.
❖ The atmospheres in the organization should be such that the employees enjoy the work.
❖ To conduct stay interviews and exit interviews
❖ To create open communication between the employees and the management
❖ Offering competitive benefits that fits employees needs
Conclusion:
To attain maximum profit, the organization should concentrate more on employees and the ways to retain
them for their long run. From the study it is identified that factors like stress, not getting along with the
superiors, maintaining a low work life balance, starting own business force employees to change their
jobs. This study concludes that in order to reduce attrition in organizations should create some opportunities
for the growth of their employees within the organization by making the job challenging, hiking salaries
and good working condilionsand effective training programs.
■■■
84
ACCULTURATION AMONG FISHERWOMEN CLAN
Discussed below are the models of Acculturation.
*Dr. Preethi Keerihi DSouza
The fourfold model is a bilinear model that categorizes acculturation strategies along two dimensions.
* Assistant Professor, Department of Post Graduate Studies and Research in Commerce,
Mangalore University. The first dimension concerns the retention or rejection of an individual's minority or native culture
(i.e. “Is it considered to be of value to maintain one's identity and characteristics?”), whereas the
second dimension concerns the adoption or rejection of the dominant group or host culture. (“Is it
Introduction considered to be of value to maintain relationships with the larger society?”) From this, four acculturation
Acculturation is the process of social, psychological, and cultural change that stems from blending strategies emerge.
between cultures. Acculturation is also a direct change of one’s culture through dominance over another’s 1. Assimilation occurs when individuals adopt the cultural norms of a dominant or host culture, over
culture. Due to this influence there are changes in culture, customs, religious practices, diet, healthcare, their original culture.
and other social institutions. Some of the most noticeable group level effects of acculturation often 2. Separation occurs when individuals reject the dominant or host culture in favor of preserving their
include changes in food, clothing, and language. culture of origin. Separation is often facilitated by immigration to ethnic enclaves.
The base word of acculturation is ‘culture’. So, what is culture? Simply stated, culture means a way of 3. Integration occurs when individuals are able to adopt the cultural norms of the dominant or host
living and a way of life. Culture means that there are certain ways and reasons in which individuals and culture while maintaining their culture of origin. Integration leads to, and is often synonymous
group of people speak, conduct themselves, celebrate holidays, and express their belief systems. We with biculluralism.
are aware that there is a tremendous diversity of cultures around the world. 4. Marginalization occurs when individuals reject both their culture of origin and the dominant host
culture.
Some of these cultures include American, Hispanic, Asian, and European cultures. When discussing
cultures, we can break down the larger geographic areas into smaller regions. There are as many Studies suggest that individuals’ respective acculturation strategy can differ between their private and
cultures in the world as there are countries, states, and regions. public life spheres. For instance, an individual may reject the values and norms of the dominant culture
in his private life (separation), whereas he might adapt to the dominant culture in public parts of his
Understanding the term ‘culture’ can lead us to more fully understand the terms associated with the life (i.e., integration or assimilation).
theory of acculturation. When individuals or groups of people transition from living a lifestyle of their
own culture to moving into a lifestyle of another culture, they must acculturate, or come to adapt the new One of the byproducts of acculturation is Acculturative stress. This refers to the stress response of
culture’s behaviors, values, customs, and language. The word ‘acculturation’ is the act of that transition. immigrants in response to their experiences of acculturation. Stressors can include but are not limited
to the pressures of learning a new language, maintaining one’s native language, balancing differing
In India we focus on ‘Unity in Diversity’. We are a house of diverse cultures and traditions and India is cultural values, and brokering between native and host differences in acceptable social behaviors.
a place where in every few kilometers we find a unique world. There are numerous cultures and traditions Acculturative stress can manifest in many ways, including but not limited to anxiety, depression,
and they are unique in their own way. substance abuse, and other forms of mental and physical mal-adaptation. Stress caused by acculturation
This paper focuses on the fisherwomen of the west coast of India, particularly the Mangalore region of has been heavily documented in phenomenological research on the acculturation of a large variety of
Karnataka State. Acculturation has taken place in this clan too. immigrants.This research has shown that acculturation is a “fatiguing experience requiring a constant
stream of bodily energy,” and is both an “individual and familial endeavor” involving “enduring
Theories of Acculturation loneliness caused by seemingly insurmountable language barriers.”
The theory of acculturation can be broken down to include a few different topics; these include learning
a new language, immersion, assimilation, and integration. In situations of continuous contact, cultures have exchanged and blended foods, music, dances, clothing,
tools, and technologies. Cultural exchange can either occur naturally through extended contact, or
Language and immersion can be some of the most important parts of the acculturation process. In fact, more quickly though cultural appropriation or cultural imperialism.
social theorist John Schumann proposed that language is the largest factor in successfully acculturating.
Cultural appropriation is the adoptions of some specific elements of one culture by members a different
In Mangalore, where in this study is conducted, the Local Language is Tulu and this language has a lot cultural group. It can include the introduction of forms of dress or personal adornment, music and art,
to play arole in the process of acculturation. religion, language, or behavior. These elements are typically imported into the existing culture, and
may have wildly different meanings or lack the subtleties of their original cultural context. Because of
The immersion phase of acculturation can be very challenging and stressful. However, being open and
this, cultural appropriation for monetary gain is typically viewed negatively, and has sometimes been
willing to set aside your own cultural background and beliefs, .as well as learn a new language, can
come with hesitation, confusion, and can often be time-consuming. called “cultural theft.”
86 j‘
Cultural imperialism is the practice of promoting the culture or language of one nation in another, usualfyl General Findings:
occurring in situations in which assimilation is the dominant strategy of acculturation. Cultural imperialism
• Mogaveeras are the major fishing community in coastal Karnataka, India. They form one of the
can take the form of an active, formal policy or a general attitude regarding cultural superiority.
largest communities in the Tulu ethnic group. The word ‘Mogaveera’ is a modernised version of
Language the old word ‘Mogeyar’.
In some instances, acculturation results in the adoption of another country s language, which is then! • The Mogaveeras represent the native fishing community of the Karavali Karnataka. In the Udupi
modified over time to become a new, distinct, language. Another common effect of acculturation on I area they are also known as Marakalas. To the south of Ullal they are known as Bovis. In the
language is the formation of pidgin languages. Pidgin is a mixed language that has developed to help southern Karavali from Brahmavara southward they speak Tulu and in the north they speak Kannada
communication between members of different cultures in contact, usually occurring in situations of j or Konkani towards Karwar.
trade or colonialism. For example, Pidgin English is a simplified form of English mixed with some of I • Edgar Thurston describes them as Mogers, the Tulu speaking fishermen of South Canara reported
the language of another culture. that ‘these fishermen are called Mogeyar and are a caste of Tuluva origin.
• They are known for community living, where disputes are settled within the community by a group
Food of elders. The group leader is known as ‘gurikara’.As all other Tuluvas, Mogaveeras also follow
Food habits and food consumption are affected by acculturation on different levels. Research indicated AliyaKattu, where inheritance of from Uncle to Nephew
that food habits are discreet and practiced privately, and change occurs slowly. Consumption of new • Mogaveeras live in community fishing settlements, called “Pattanas”. The village BhajanaMandali
food items is affected by the availability of native ingredients, convenience and cost; therefore, an forms the centre of their social life. Bobbariya is one of the popular spirits traditionally worshipped
immediate change is likely to occur.
by the Mogaveeras.
One of the drawbacks of Acculturation is deculturalization. Deculturalization is the process by which ! Specific findings of the study:
an ethnic group is forced to abandon its language, culture, and customs. It is the destruction of the > The fisherwomen in the ambit of the study are enterprising and have taken up trade in the fishing
culture of a dominated group and its replacement by the culture of the dominating group. Deculturalization
is a slow process due to its extensive goal of fully replacing the subordinate ethnic group’s culture, community which otherwise is a male dominant trade.
> Majority of the fisherwomen belong to the mogaveera community and women from the other
language, and customs.
communities too have jelled in with the norms of the majority.
This paper focuses on the acculturation trends of the fisherwomen clan. A fisherwomen is a female > The study reveals the possessiveness these fisherwomen have to their culture and they do not let
member of the fisherfolk, engaged in any of the fishing allied activities in and out of coastal area. The down their fellow lady where ever a dispute arises between the seller and buyer of fish.
study is conducted in Dakshina Kannada District on the fisherwomen who are in the trade of selling > Individuals who see the fish market for the first time do get a cultural shock due to the language and
fish in the markets. It is a known fact that fisherwomen have an archetypal and distinctive culture. dressing patters.
Whenever we think about fisherwomen or even see them we do sense a feel of their culture and practice. ; > They follow the practices of the fishing community and are ardent believers of their trading practices.
In Dakshina Kannada District majority of the fisherwomen belong to the mogaveera community. The > In the study it is revealed that fisherwomen have experienced economic independence and this
keeps them going. However the younger generation is not interested in taking up this trade.
Mogaveera were originally a fishing community, who reside mainly in Dakshina Kannada and in the
Udupi district of Karnataka, India. The women of this community are enterprising and have taken up j > In the past only the mogaveera community was in the fishing industry and the entire fishing work
was done by the fishing caste people only but now every caste people like Muslims, Bunts, Poojaris,
trade in the fishing community which otherwise is a male dominant trade.
Brahmins and Christians etc are involved in fishery activities.
This study is on the practices of fisherwomen and their cultural bond. Majority of the fisherwomen j > The respondents agreed that the typical odd smell ofthe fish is not a factor that keeps them away from
belong to the mogaveera community and women from the other communities too have jelled in with j the trade but fishing being an instant money making area is a factor they look upon when trading.
the norms of the majority. This study is conducted in Dakshina Kannada District on women and how
> In Mogaveera community the birth of the female child is more welcome and treated with respect. If
being in the trade of selling fish has a influence on their language, food, dress and community building. any couple does not have children they prefer to adopt a female child instead of male thinking that
The study gives the glimpses of the cultures that are followed by the fisherwomen community which daughter looks after them well and feed them in their old age. This factor has jelled well in the
gives a distinct color and flare to their practices and culture. process of Acculturation and other communities too have stated taking this concept in the right spirit.
The study reveals the possessiveness these fisherwomen have to their culture. The study also reveals > The birth of female child gives them a sense of security and peace of mind and this is one of the
This attitude is not found in any other caste people. However the
that this culture is a
___________part of the fisher women not only because they belong to a particular religion but unique features of the Mogaveera.
mainly due to the trading practices they follow and the environment that they deal with, for the major thinking is now being positively tnfluenced by the women of the other caste too . Female infanticide
part of the day. is not to be seen.
88 89
> Women of Mogaveera fishing caste inherits right her very right from the birth, the demand for
INDUSTRIAL RELATIONS - CHALLENGES AND GROWTH
female is more and she is not looked down upon. Even after getting married she stays back at her
*Ramyashree A B ** Viswesh Krishnan*** Suresh Kumar B
parental house at least for 6 months and rest of the time she stays back at her husband’s house. She
* Lecturer, Department of Commerce **Lecturer, Department of Management Studies
has equal right in parental property. Even though she is illiterate she is economically sound than her
***Lecturer, Department of Management Studies, Malik Deenar College of Graduate studies,
male counterpart. She is courageous and takes her own decision not scared of anything.
Kasaragod, Affiliated to Kannur University.
> Mogaveera women want to be economically independent. These women are so courageous that
during night after finishing day’s hard work they walk alone to their home. Introduction
> The Mogaveera fisher women are very religious. They contribute more than their men and perhaps “1R” may be defined as the means by which the various interests involved in the labour market arc
more than any other caste women. They have tremendous faith in God. accommodated, primarily for the purpose of regulating employment relationships. The relationship between
> The study also revealed that it is this trade that has gifted the fisher women with robust physical labor and management is based on mutual adjustment on interests and goals. It depends upon economic,
features and they are tall, good looking, possess strong health andare very hardworking. social and psychological satisfaction of the parties. Higher the satisfaction, healthier the relationship. In
Conclusion: practice, however, it is found that labour and capital constantly strive to maximize their preferred values
Acculturation is the cultural modification of an individual, group, or people who are in influence of a by applying resources to institutions. In their efforts they are influenced by-and-are influencing others.
typical culture. Acculturation is the result of adapting to or borrowing traits from another culture. Both of them augment their respective incomes and improve their power position. The major issues involved
in the industrial relations process are terms of employment viz., wages, dearness allowances, bonus,
Women play an all-important role in the marine fishery by involvingin harvesting, processing and marketing fringe benefits, working conditions, viz., leave, working hours, health, safety and welfare; non-employment-
of fish. Though the role of fishharvesting at sea is very restricted, activities like pulling of beach-seines related situations such as job security, manning and employment. Impact of work changes personnel issues
andpicking of shells/cockles are sometimes undertaken by women.Women’s involvement in economic such as discipline, promotional opportunities and, among others, recognition of trade unions. Industrial
activities can be categorized in two different stages. One, involvement due to interest in raising family’s relations comprises of a network of trade unions, employers, their collective bargaining, the laws and the
economic standard and the other involvement due to interest in enhancing the quality of life. governments. With the growth of professional management, the representatives of employers and employees
represent the industrial relation scene. It is a comprehensive and total concept embracing the sum total of
This paper summarizes that women are in this trade for the reason one and they are instrumental in
relationships that exists at various levels of organizational structure. It denotes all types of inter group and
raising the standards of their lives too along with that of their families. Acculturation has proved to be
intra group relationships within industry as also formal and informal. Industrial relations were very cordial
positive and instrumental for the ladies to build a positive life and they are very much in love with their
culture and way of life. before the Industrial Revolution. However, with the Industrial Revolution, cottage industries were replaced
by large factory organizations and market from local to international. With the passage oftime, a substantial
References: population including men, women and children started concentrating in industrial centers; and this population
• Ashalatha. S., C. Ramachandra, I. Sheela, A. D. Diwan and R. Sathiadas. (2002). Changing roles of characterized by ignorance, poverty, and conflicting ideologies.
fisherwomen in India: issues and prospective, p. 21-43. In: M.P. Kohli Singh and T. Ratna (Eds),
Women in Fisheries. Indian Society of Fisheries Professionals, Mumbai, India. Literature Review
The concept of Industrial Relations is critically examined by various people in different sectors and
• Dehadrai, P. V. (2002). Women at the center stage for socio-economic change in fishing community.
regions. A few studies have been taken for review.
In Kohli Singh, M. P. and Ratna, T. (2002), Women in fisheries. Indian Society of Fisheries
Professionals, Mumbai. India, p. 1-7. K.G Desail in his findings examined that adequate earnings, security in job and fair treatment of grievances
. Sudhindra R. Gadagkar, (1992) Women in Fisheries in India. Edited Special Publication 8,.Asian were important motivators for workers and opportunities for advancement were considered as another
Fisheries Society, Indian Branch, Mangalore, India important factor.
. M. J Williams, “Global Symposium on Women in Fisheries”, “Women in Fisheries in Asia” 2001, p.7.
Saxena R C studied on Industrial Relations in selected units and examined employment, earning &
• ° G°Vemme"tinWomenCo-0Pcratives.Th‘!TamiINaduJournalofCo-operation, expenditure, the maintenance of personnel, attitude of the employees towards policies, the growth and
1990, vol. 82, p. 447.
development of labour movement as the determining factors.
• “7™* V, I-oWemen, of Women in Co-operatives, The Tamil Nadu Journal of Co-
operation, 1999, vol. 80, No.9, p. 537. Gangadhara Rao M in his study entitled, “Industrial relations in Indian Railways”, has investigated the
• KHRa"ca’ V.n rfCrreZ C0ITai jW°men “d Fisheries NelW0*. “Worn™ in Asian Fisheries” 2001, p. 23. personnel and union - management relations with special reference to post - independence period. The
Chandra; S„ Performance and Functions Fishery Co-operatives in India - An Appraisal, The Firs. study analyzed trends in employees’ remuneration, hours of employment, absenteeism, discipline, employees’
Indian Fisheries Forum, Mangalore, Karnataka, 1987, p.325. unions and leadership in Indian Railways as the main factors for harmonious industrial relation.
II » 91
■
Baldev R. Sharma & Das GS. study on “Organizational Determinants of Human Relations in the Banking )
and in time, the organization will be rid of the disease in the beginning itself. Various procedures
Industry”, identified advancement, welfare, money, recognition and appreciation as factors which constituted
followed by companies. Some of them are as follows:
the best combination in explaining variation in supervisory - management relations in banks. These factors
together contributed 78 percent variation in human relation in banking industry. It was also found that 1. Investigate and handle each and every case as if it may eventually result into dispute.
2. Give employee a full hearing.
relationship between welfare and employer - employee was positive and improvement in one factor
3. Enforce agreement in true spirit and ensure unions identify specific contractual provisions allegedly
contributed to the improvement of the other. violated.
Objectives of the study 4. Do not by action or inaction cause the employee or the union to default on their compliance with
1. To study the importance of Industrial Relation in an organization. any contractual obligations.
2. To study the effect of Industrial Relation in raising productivity and lessening the tendency of 5. Do not deny the grievance for reason of no compliance.
6. An argument on grievance which is untimely is not advisable.
turnover of labors in organization.
7. Do not apply grievance remedy to an improper grievance
3. To recognize the various challenges faced by the business with regard to industrial relation. 8. Does not hold back the remedy if the organization is wrong and apply the remedy to the persons
Research methodology wronged.
This paper is based on secondary data collected from various sources such as research paper, books, 9. Do not assume a judicial or arbitral role.
articles, annual report. 10. Remember always that the union is moving party
Limitations of the study Collective bargaining - a source for harmonious industrial relations growth
1. First-hand information is not available since data is based upon secondary information. Collective bargaining is a process in which representatives of two groups meet and attempt to negotiate an
2. Limited period of time. agreement, which specifies the nature of future relationship between the two. It is a mode of negotiation
between representatives of management and trade union leader to accomplish a written agreement covering
Present industrial relation scenario in India
terms and conditions of employment. Here, both the parties involved in the bargaining process attempt to
In India Employer - Employee relation started with Industrialization. At initial stages all employees were
get their own terms accepted by other party, yet by its nature it implies a compromise and balancing of
on permanent rolls of the company/organization. During this phase strong labour law were introduced to
oppressing views. It is a form of industrial democracy involving give and take process. It depends on
benefit and protect the interests of labour class. Labour laws were amended from time to time and it is careful and skillful preparation at the bargaining table. Bargaining attitudes and methods have a significant
changing every year now. Union formation was considered to be one of the rituals when any organization is
influence on agreement
started. Later on dispute between union and employer increased resulted into requirement of more Industrial
Tribunals. The main focus in India is shifted from Employer - Employee relation to Employer - Contractor Essential conditions for success of collective bargaining
relation to avoid the union related issues. Most of the companies are now outsourcing the manpower to 1. Bargaining power of two parties should be relatively equal and then only constructive consultation
third party agency so that they can avoid union issues and complicati ons. is possible.
2. The management should be ready to recognize union for this purpose.
Are all Unions are workingfor benefit ofLabour Class'? Of course NO! Most of the unions are related to
3. Both the parties must have mutual confidence, good faith and a desire to make collective bargaining
political parties and they have their vested interests in the union formation. But this does not mean that
machinery a success.
there are no genuine unions who really work for benefits of labour class. Just because of few politically 4. Dispose of the issues in the same meeting and minimize the pending items.
supported unions, others are seen from the same lenses. One thing is notable that the rate (Number) of
5. Both parties must understand economic implications of collective bargaining.
dispute filing in Industrial court, Labour court, Labour office is drastically reduced since 80-90s as compare 6. Both the parties should represent the rights and responsibilities of each other.
to 2016-17. It doesn’t mean that labors are not exploited in current scenario, where labour class is not
7. The process of bargaining should be free from unfair practices.
interested as they work in contract and contractor is the supreme for them. They cannot catch-hold of
Principle employer, as there is no legal relationship set. Here the Point to be noted is that, most of the work Industrial disputes and methods for resolving disputes for effective industrial relations
is getting outsourced where contractor (labour supplier) class is getting benefited, wherein the employer The conflict of interest between the management and labour is inherent in the capitalist system, whereby
is more comfortable as they can avoid union the goal of one party can be only realized at the cost of the other. Certainly, the profit maximization goal of
management may demand, changes in the types of goods produced, installation of new machinery, adoption
Grievance redressal for effective industrial relation
ofnewer method of production, involving loss ofhard earned skills, transfers, retrenchment and compulsory
Grievance is like “headache”. It is a symptom and not a disease. Diagnosed properly, treated appropriately
i
93
retirement of workers. On the other hand, the workers expect and demand stability in their income, security^ (Hi) Adjudication:
of employment and improvement in their status. Industrial conflict is a rather general concept; when it
Adjudication refers to a process, which involves intervention in the dispute by the third party appointed by
acquires specific dimensions, it becomes an Industrial dispute. It constitutes open manifestation of the the Government, with or without the consent of the parties to the dispute, for the purpose of settling the
feelings of unrest and dissatisfaction on the part of workers. According to The Industrial Dispute Act 1947 dispute. The Industrial Disputes Act 1947 provides machinery consisting of:
the term ‘Industrialdispute ’ means any dispute or difference between employers and employers or between (a) Labour Court
employers and workmen or between workmen and workmen, which is connected with the employment or
(b) Industrial Tribunals
non - employment or the terms of employment or the conditions of labour, of any person. Industrial disputes
generate consequences, which are harmful from the economic, social and human points as well. Industrial (c) National Tribunal for the adjudication of industrial disputes
unrest reflects failure of human motivation to help employees’ secure adequate satisfaction in life. It also (a) Labour Court:
generates class hatred during the period of dispute, which is very difficult to remove in future. The problem The Government may constitute one or more labour courts for adjudication of dispute. The labour Court
of industrial relations may be resolved through two kinds of measures, viz. shall consist ofone independent person who may be thejudge of High Court or District Court. The following
(a) Preventive Measures (b) Settlement Machinery matters will fall within the jurisdiction of labour court to amicably solve the dispute:
❖ The priority or legality of an order passed by the employer under the standing orders.
(a) Preventive Measures: ❖ The application and interpretation of standing orders.
Prevention is better than cure. Management of the organization may take preventive measures in order to *** Discharge or dismissal of workers including reinstatement.
create harmonious relations and mutual cooperation and understanding between employers and workers. ❖ Illegal or otherwise of any strike or lock-out.
Some of the important measures, which may help to prevent or mitigate Industrial disputes, are tested as
under: (b) Industrial Tribunals:
i. Growth of strong and responsible trade unions and securing effective participation of workmen in j The Government may, by notification in the Official Gazette, constitute one or more Industrial
management. Tribunal for adjudications of Industrial disputes. Matters within the jurisdiction of an Industrial
ii. Developing suitable procedures in consultation with workmen to deal with problems of Industrial Tribunal include:
discipline and employee grievances,
•> Wages including the period and mode of payment.
i ii. Evolving suitable code of conduct and terms of employment.
♦> Compensatory and other allowances.
iv. Professionalization of Management.
❖ Hours at work and rest intervals.
v. Providing safer and healthier working conditions to employees.
❖ Leave with wages and holidays.
(b) Settlement Machinery: ❖ Bonus, profit sharing, PF and gratuity.
Through preventive measures disputes are likely to be minimized but not eliminated. Thus, in spite of best
(c) National Tribunal: For the adjudication of Industrial disputes of national importance spread in
efforts to prevent them, ifany Industrial disputes arise, they need to be amicably settled for better Industrial
more than one state, The Central Government may by notification in the official Gazette constitute
Relations. For this purpose it is necessary to provide appropriate machinery for expedition and equitable
National Tribunals, which shall consist ofone person below the age of 65 years. Other terms same
settlement of industrial disputes. The Industrial Disputes Act 1947 provides the machinery for settlement
of Industrial disputes in the country, which comprises of: as Industrial Tribunals.
i. Conciliation ii. Arbitration iii. Adjudication Workers participation in management as a growth of industrial relation:
(i) Conciliation: The concept of workers participation in management crystallizes the concept of Industrial democracy and
Conciliation refers to the practice by which the services of neutral third party are used in a dispute as a indicates an attempt on the part of employer to build his employees into a team, which work towards the
means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable j realization ofcommon objectives. The objectives of the workers participation scheme vary from country
settlement. Under conciliation, the conciliator does not give his judgments on the issue; rather he acts as j to country, as they largely rest with their socio — economic development of the country, its Political
catalyst agent and assists the parties in disputes, in their negotiation and decision making. Philosophy, Industrial Relations and the attitude of workers. The main objectives of workers participation
(ii) Arbitration: in management include:
1. To promote increased productivity for the advantage of the organization, workers and society at
Arbitration is a process in which a dispute is submitted to an impartial outsider for his decision, which is
usually binding on both parties. Arbitration may be voluntary and compulsory. The Act recognizes voluntary large.
2. To provide a better understanding to employees about their role and place in the
arbitration as a method of settling disputes in which third party acts as judge to decide the matter, which is
binding, to the union and management. 3. process of attainment of organizational goal.
■ ‘
4. To satisfy the workers’ social / esteem needs thereby strengthen labour management co-operati0nT
equality is necessary. Government agencies should assist the two sides in public interest. Problem centred
and at large maintaining Industrial peace and harmony.
negotiations rather than a legalistic approach is desired. Widespread Union - Management consultations
5. To develop social education for effective solidarity among the working community and for tapping i and infonnation sharing are helpful.
latent human resources.
6. An ideological point of view to develop self- management in industry. . participative Management:
To build most dynamic human resources and that the nation moves forward through entrepreneurship and Employers should associate workers and unions in the formulation and implementation of Human
economic development. Resource policies and practices. Management should convince workers of the integrity and sincerity of the
company. Management should not interfere in the internal affairs of the unions. Instead of trying to win
Trade union and its effect on industrial relation workers’ loyalty away from Unions. Management should encourage right type of Union leadership. A
Trade unions are a major component of the modem Industrial Relations system. A trade union of workers is ! strong Union is an asset to the employer.
an Organization formed by workers to protect and promote their interests. Trade unions are now considered i
as a subsystem, which seek to serve the specific sub group’s interest and work as a part of Organization j • Responsible Unions:
and Industry. The Indian Trade Unions Act, 1926 defines a trade union as “Any combination formed ! Unions should adopt a responsible rather than political approach to employer-employee relations. Unions
primarily for the purpose of regulating the relations between workers and employers”. should accept private ownership and operations of industry. They must recognise that the welfare of
Labour unions check the unfair labour practices of employers. The NLRA declares that it is unlawful for workers depends on the successful operation of industry. A strong, democratic and responsible union alone
employers to dominate a union, discriminate against workers engaged in union activity, and victimize can ensure that workers honour the agreement with their employer.
workers who file charges against them with the National Labour Relations Board or interfere with employees • Employee Welfare
engaged in concerted union activity. If the employer does any of these prohibited acts, the union can take it Employers should recognise the need for the welfare of workers. They must ensure reasonable wages,
up with the board on behalf of the employees. For example, the union representing Boeing Co., Engineers satisfactory working conditions, opportunities for training and development, and other necessary facilities
and Technical workers filed charges against the company for interfering with employees engaging in j for labour. A genuine concern for the welfare and betterment of working class is necessary.
concerted union activity. The board investigates charges and may take a variety of actions, including j
7. Grievance Procedure:
issuance of cease - and - desist or reinstatement orders to remedy unfair treatment against employees. |
A well - established and properly administered system for the timely and satisfactory grievances redressal
Unions ensure that employers comply with the law and can lodge appeals in federal court ifemployers do !
of employees can be very helpful in improving employer-employee relations. It provides an outlet for
not respect board decisions.
tensions and frustrations of workers. Similarly, a suggestion scheme will help to satisfy the creative urge
Suggestions ofworkers. A code ofdiscipline ifproperly adhered to by both the parties will help to avoid unilateral and
• Sound Human Resource Policies: violent actions on either side.
Policies and procedures concerning the compensation, transfer, promotion, etc. of employees should be
Conclusion
fair and transparent. All policies and rules relating to employer-employee relations should be clear to | Inadequate working condition and poor wage structure are the major factors responsible for employees’
everybody in the enterprise and to the union leaders. Top management must support them and set an grievances as per employees’ views. Poor working condition and strained superior subordinate relationship
example for other managers. Practices and procedures should be developed to put human resource policies result in Industrial unrest. Lack of career advancement schemes for employees also causes Industrial
into practice. Sound policies and rules are of little help unless they are executed objectively and equitably. unrest up to a certain extent. Management of employee units is stronger in the process of Collective
• Constructive Attitudes: Bargaining.
I
Both management and trade unions should adopt positive attitudes towards each other. Management must i References
recognise union as the spokesmen ofworkers grievances and as custodians of their interests. The employer 1. Srivastava S C (2012) Industrial Relation and Labour Laws.
should accept workers as equal partners in a joint endeavor. Unions and workers, on their part, must 2. Townsend Keith (2013) Contemporary trends in Employment Involvement and Participation Volume
recognise and accept the rights of employers.
475-487.
• Collective Bargaining: 3. Boxell Peter (2014) The iuture of Employment Relation from the Perspective of Human Resource
Employers’ organisations as well as trade unions should be able and willing to deal with mutual problems Management.
freely and responsibly. Both should accept Collective Bargaining as the cornerstone of good employer- 4. Subba Rao P, Mamoria Sathish, Mamoria C B (2017) Dynamics oflndustrial Relahons.
employee relations. A genuine desire on the part of employer to bargain with employees on the basis of 5. Sankaran, Deodhar, Prof. Punekar (2003) Labour welfare. Trade Unionism and Industrial Relation.
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COFFEE PLANTATION AND ITS IMPACT ON
people of letters, not to mention the fact that the governmental organs, for convenience sake included
CULTURAL DI VERSITY OF COORG
Kodavas under general terminology of Hindu religious group, and Kannada linguistic
*Avinash. V ** Harshitha C. T group. (Ramanujam, P.S., 12-19)
* Research Scholar, Depart, of History, Mangalore University, Mangalagangothri
**Lecture in Commerce, Raffles International College (CBSE), Napoklu, South Kodagu The gazetteer of Coorg compiled by Rv. G Richter make mention about Kodava race. The renowned
historian I.M. Muthanna's The Tiny Model State of south India gives detailed knowledge about
Introduction Kodava genesis and heritage and even Dr. Coravanda Appaiah in his master piece Kodavara Kula
The diversity and variety and of course, the underlying unity of India is obvious; These people of each Charadhithathvopa Jeveni gives more details about Kodavas. The report submitted by Havanoor
region of this vast land of the Indian Union have certain distinctive strands and features in face and figure, commission, which is known to be the Bible of the backward classes, also makes mention about
food and dress, language and literature, faculties and traits. Therefore each region has some uniqueness of
Kodavas being a martial race. Described Kodavas quoting M.N. Sreenivasan, an acknowledged socio
its own. Yet a common culture binds the people of India together. India extending from Kanyakumari in the
south to the Himalayas in the north is the motherland of the I ndians. In this vast tract of land, Kodagu is a anthropologist of yester years and a former professor of Delhi School of Economics, from his book
very tiny spot, which had once the status of a state and now forms a district of Karnataka. entitled Religion and Society among the Kodavas ofSouth India the okka is much stronger internally
than the joint family of the higher castes in India. This is substantially correct because its organization
Coorg Cultural heritage of a people is a priceless legacy passed down from generation to generation; it is and strength sustained them as a race with very little dilution over 2000 years.
experienced in the current generation in both tangible and intangible ways. The tangible aspects of a
culture include the habitats of the people as well as the costumes and artifacts that they are in their daily Coffee and its cultural history of coorg
lives and rituals; the intangible aspects include their traditions, customs, festivals rituals language, folklore, For centuries Coffee has been cultivated in the Western Ghats of India. It is widely believed to have been
songs and dance. The tangible and intangible aspects of a culture are so closely knit together that neither of introduced by the Muslim saint, Baba Budan, in the 16th century. Gradually after its introduction, coffee
their aspects can be observed or experienced in isolation. {Chinnappa Boverianda & Nanjamma. p.02) cultivation was embraced by the Kodavas, the elite community of Kodagu district in Western Karnataka
There is a plethora of European writing on Coorg in the 19th Century; they explore the geography fauna and (Richter 1870). Today, more than one third of India’s coffee is grown in Kodagu district (Coffee Board of
flora ethnic varieties, customs and manners and the rules and people of the region. In fact Coorg was both India 2006), and India is the world’s fifth largest coffee producing country.
unveiled and subjugated by the colonial had and that explains the plenitude of European writing on Coorg; Coorg is broadly divided in two halves, southern and northern. Southern Coorg is larger, warmer, drier
they are indeed essential sources of history; but beyond that they exude the aroma of the past and give an and uniformly shaded region generally called the Bamboo. Col. Welch describes southern region as
intimate feel of history. They also throw up the myriad images which have gone into the making of the “extensive and almost impenetrable growth of bamboo”. J. Camerson writing about the Bamboo in 1896
Coorg persona. (B. Surendhra Rao & K.M. Lokesh.p.2) said that “Coorg was the home of coffee, there being no other part of India where so much coffee was
cultivated in so limited space. Wherever one looks, hillside and valley are an unbroken sheet of shining
Coorgs entirely different from the other communities of South India; they have their own unique social
green with thickly clustered berries, the whole being shaded by stately trees”; in North Coorg the weather
customs. Their dress and ornaments do not have anything in common with what is generally known as
is too cold with heavy rainfall. Estates are more isolated and are separated from each other by evergreen
typically South India. During the Vedic period the Aryans had established themselves in North India and
forest, it is not all coffee. But wherever coffee has been planted the crops are heavier. {Historical Summary
the Dravidians in the South. The great epic Ramayana is said to be roughly 500 years (3000 B.C.) old. The
story of Coorg (Kodagu) is even more ancient. Its soil was sanctified by Sri Rama both on his way to ofthe British Rule in Coorg, p.16-17)
Lanka and on his return from there. The people of Kodagu worshipped Rama even from the Ramayana The first estate was opened near Madikeri (or Mercara as the British called it) in 1854 and by 1877,
times. There is a sacred spot called Iruppu in the village of Kurchi in South Kodagu on the Brahmagiri 44,000 acres had been planted in 84,000 acres of holdings. But now, most of estates were small and
htlls, where there is a temple of Rama. The Ramatirtha stream and the Lakshmanatirtha River take their proprietary. Today there is only one large corporate holding, a few medium sized company and rest are
sources on one range of the Brahmagiri hills; and, on another in North Kodagu, the Kaveri takes her family owned estates where the whole family maintains the estates. The largest corporate coffee company
source. Kodavas also known as Coorgs, having their unique culture and traditions; the Kodavas generally is today a Tata Company but was founded in Edinburgh early in 20,h century. (Muthanna, l.M, p.254-256)
consider themselves to Ksatriya according to the system of Hindu Vamas, and ancestor worship rather Coffee in Coorg was at its peak in the period 1878-83, but it was not the ‘borer’ or the leaf insect which
than following strict Vedic principles (Srinivas. 1965). Kodavas are either Negroid race, Mongoloid brought to an end this flourishing state of affairs at a time when over 80,000 acres were under coffee. But
race, Dravidian race or Aryan race; neither they are a Kannada linguistic group nor did affiliate to a glut in the market and Brazilian competition from 1884 depressed prices. Due to this several estates
any faiths they belong to an entirely different and unique nationality, i.e. Kodava ethno cultural belonging to coffee went back to paddy or started orange cultivation. It was the subsequent plantation
group. There are no sector sub sects in Kodava race. In Kodava Nationality each Kodava clan, Khandan, reforms in the 20* century that made Coorg coffee lookup again. However recent researches in land use
Lineage, okka are linked with each other like a long chain. It is true that the old historians and and environment suggest that the traditional coffee growing districts in Karnataka (Coorg) and northern
IS 98 *' 99
Karnataka in particular retained a high proportion of forest shade till at least the beginning of the twentieth jamma is Cultural Heritage of Coorg:
century. (Historical Summary of the British Rule in Coorg, p.I8) There was a religious practice of Jamma land is the life line of Kodava heritage; Due to the restrictions imposed by the government of
preserving patches of forest, often as large as twenty hectares, known as Devarakadu or sacred grove Karnataka on Jamma lands, the banks, nationalized and scheduled are reluctant to advance financial
prevailing in the Western Ghats among other parts of India. Moreover, there were different kinds of land assistance to the land holders on the security of Jamma Lands. This has forced many Kodavas to part
tenures with varying rights on the trees growing on them. In Coorg, for example, there were seven types of with the Jamma land much against the real intension behind the creation of Jamma tenufc\,Jainma •/-;/
land tenures (granted in return for different kinds of services rendered), five types of lease tenures and tenure is inherent propriety of Kodavas, this inherent property has got approved an^ptiflr^^^^'
seventeen types of forest land tenures. Whereas owners of redeemed land had right to the trees on the land the then Coorg Rajas as Jamma Tenure only in order to give continued security to KodaPnrfryTtfcc
purchased those of unredeemed land did not. However, coffee was grown in some sacred groves and the and each and every Nirupa i.e., (Richter, Rev. G, pp.359-364)
process of encroachment of forest land for plantation and other purposes including conservation, exploitation
of forest resources for shipbuilding, replacement of fine timber by species of high commercial value like This is a special system of land tenure in Kodagu known as the Jamma. This special land tenure Jainma
teak and clearing of forests for laying railways begun in the nineteenth century went unabated during the means birth under which most of the Kodavas who held their land were bestowed on them by Rajas
course of the twentieth century, resulting in further denudation of natural species of trees and vegetation on ensuring their military allegiance. It was a hereditary right passing from father to son and for that reason
the one hand and dislocation in the life pattern of the people living in forests on the other. An estimated was called Jamma which meant birth. This special tenure was exclusively bestowed on the Kodava
two-thirds of Kodagu district is covered by forest (Chandrakanth el al. 2004), which includes the coffee community though there may be Jamma holders ofother communities whose number may be negligible and
plantations, Devarakadu groves, three Wildlife Sanctuaries (Brahmagiri, Talakaveri and Pushpagiri), and who got it by virtue of service to the king. The objective of the bestowal on the Kodava community was to
one National Park (Nagarahole). ensure their help in times of war. The Jamma tenure was a light one in terms of money being only half of
the rate of the Sagu land. People holding Jamma lands were liable to be called upon for military service.
Coffee changes the Face of Coorg:
According to Rev. G. Richter who wrote “A manual of Coorg”, the Jamma ryots are still liable to be called
The nature of the Coorg society and traditions changed after the advent of the British in 1834 A.D; after
out to repel outward aggression and quell internal disturbances, to furnish all police and treasure guards
1850’s, a large numbers of European planters began settling in the forested mountains to cultivate coffee,
etc. during peace time. Jamma tenure was of advantage in view of not only the economic benefit but also of
which resulted drastic change in the economic conditions of Coorg. The introduction of coffee cultivation
local prestige. It signified that the holder was the son of the soil having deep roots in Kodagu land. Coffee
was a turning point in the history of Coorg. Through coffee cultivation, people of Coorg started earning
cultivation led to economic development of a region and brought about transformation in the economic
their livelihood which enabled them to look beyond their ordinary demand with limited requirements. The
existence of European community and their activities in popularizing coffee in their neighborhood had a institutions thereby causing changes in the lifestyle and standard of living of the people in Coorg. Earlier
strong influence on the Coorgs. Later the younger generation of Coorg made use of this opportunity to there was a closed, restricted economic setup which is self-sufficient with very little contact with the
become independent from the joint family. They started to registered land in the name of an individual outside world led to retarded growth in respect of socio-economic progress during the British period.
member of family. Moreover the local bureaucrats got hand some salaries from the British Government. The economy was purely agrarian, with rice being grown in large quantities. This attachment to agriculture
The new class emerged within Coorg Society; the new form of partitions generally known as ‘maintenance and land not only bound the people to their ancestral homesteads but also discouraged trade activities:
division’ took place all over Coorg. According to British officer captain Le Hardy pointed out that in absence of a merchant class, roads and transport not only limited the requirements of the people but also
Coorg many families consisting of upwards of 120 and even 150 members living under the same roof; they limited the means to procure them. This kept the Coorgs totally primitive and a tribal race. From very early
lived in the ancestral home (Ain mane) or on some and upwards. Among the Coorgs the family property times rice was the principal foodgrain and was also exported outside Coorg and the Coorgs used to sell
descends not so much from father to son as from generation to generation. The head of the family Yajamma; rice and buy the products like Jaggery, Coconuts, Coconut oil, tobacco and Arecanuts, condiments, spices
who was also known as Kororkara his wife know as Mane Panikarthi (house wife) all other were called etc. Due to the introduction of coffee cultivation which was a new economic factor and assured a new
Kikkara. (Vijay. T.P.,28-34)
source of income to the people; (Vijay. T.P, 43-52)
As to why today we cannot see this type of family structure in Coorg Society could be explained in many
Impact of coffee cultivation on the coorgs
ways; Pandanda Muthanna (1931) say that the touch ofMagic laws to divide family property among the
As we have already observed coffee cultivation was known to Coorg prior to 1834. However ever the
members; l.M. Muthanna (1953) pointed out that Revival of good oldjoint family system was decline
natives were unaware about the potentialities of coffee in bringing about drastic change in their economic
b^fause of development of plantation in Coorg; and the same way growing trend of individualism adversely
life and remained ignorant or indifferent. It was Le Hardy who made the Coorgs to grow coffee in their
affect,ng the solidarity of the family. The partition ofJamma land and the breakdown of the Centuries old
hah’1 and ancient homes was a modem phenomenon many scholars have argued that the family divisions backyards on an extensive scale. When the Coorg planters started growing coffee, European planters
rushed to Coorg, tempted and forced them to take up coffee cultivation on an extensive scale. The Coorgs
took place in discriminate^ with the encouragement of the British; because of British rule the joint family
system of all the communities in Coorg was losing its hold on society. now understood the importance of coffee as a source of income which would supplement their meagre
II 100
>
101
earnings in wet cultivation areas such as paddy or plantain, though cardamom, orange or pepper formed GAMIFICATION IN RECRUITEMENT OF HUMAN RESOURCE
some percentage of their traditional income/ Mutharma, I.M., pp. 149-153 ) Earlier there was slavery *Dr D. Jams Bibiyana** S.Sarala lakshmi
system in Coorg, when the British entered and realized the importance of coffee the bane lands were now *Asst. Professor, Dept of Commerce, St. John’s College, Palayamkottai
brought under new cultivation and there was a heavy demand for labour and hence it was in the 1850’s that ’'’'Asst. Professor, Dept.BBA,St.Xavier’sCollege,Palayamkottai
the Coorgs felt the pinch of the abolition of slavery which was legislated in 1843. They started using
labours and paid those high wages. Estate owners started building house for labourers known as ‘line introduction
mane’ in order to prevent migration of labourers. This caused a “land slide” in Coorgs economy. But the Game-thinking can be applied to the context of employee recruitment through two processes. First, game-
European counterparts slowly started cutting down the forests of Coorg and spreading coffee in their thinking can be applied to the process of finding the best “fit” between applicants and hiring organizations.
neighborhood; the Coorgs could not remain idle by looking into this issue, and there was a new awareness Generally, if organizations are more attractive to potential applicants, those organizations will receive
among them about their economic conditions. Increase in coffee cultivation and improvement in economic more applications forjobs. Also, if organizations are more attractive to applicants, those applicants might
conditions led to the interference of Government in demanding a share in the profits that accrued to both the be more likely to accept a position with that organization ifoffered. Second, game-thinking can be applied
to the recruitment process itself. Serious games and gamified applications can be used to relay information
Coorgs and Europeans from coffee. In 1857 an excise duty called the halat was imposed, on the coffee
among job seekers about available positions.
produce. Capt. Cole in 1865 observed that the cultivation of coffee had not only tended to largely increase
the revenues, but had also added to the material prosperity of the province. The above statements indicate Objectives
that there was a rapid change in the economic life of the people which invariably in the later stages led to 1. To know the unconventional method of recruitment
transformation in social life of the people. Coffee led to increase in demand and trade due to which both 2. To know the significance of gamification in recruitment.
the natives and Europeans made best utilization of available lands in Coorg. Western Ghats roads were Gamification of the recruitment process
improved and special attention was also given to develop internal roads in the province of Coorg. Since in Game-thinking also may be employed to enhance the recruitment process itself. Making recruitment
various parts of Coorg, coffee plantations started to distribute the produce outside Coorg, an internal processes more game-like or into complete serious games can motivate employees to recruit new applicants
network of roads became a necessity. The roads were supposed to be connected with external areas for or involve potential applicants in the workings of the recruiting organization. These objectives are
trade and commerce as well as for the movement of labour’s concerned in order to increase the efficiency accomplished through gamified employee referral systems and through competitions among potential
of trade and commerce and have faster export and import transaction; in this way Coorg economy and its applicants. Gamification can be employed to improve employee referral systems. Points arc earned by
cultural create an impact on the society. (Historical Summary ofthe British Rule in Coorg, pp. 16-22) employees for various behaviors (e.g., updating a user profile, sharingjob postings) within the application.
Earning points through these system then employees’ chances of winning giveaway contest within the
Conclusion recruiting company. This form of gamification aims to motivate the employees to put forth more efforts into
Cultural diversity creates uniqueness and enriches a country’s history and social set ups with creativity in the recruitment process, improving the applicant pool by increasing number of applicants.This form of
art and architectural aspects arising from such diversity, unfortunately it poses a challenge where these gamification aims to motivate employees to put forth more effort into the recruitment process. This form of
distinctions create language'bamers and enhance social segregation due to verity of individuals on tribal, gamification aims to motivate employees to put forth more effort into the recruitment processform of
caste, religious or geographical basis. Politically and economically, cultural differences act a disengagement, gamification aims to motivate employees to put forth more effort into the recruitment process.
factor especially on civic levels, some cultural are disadvantaged on income levels leading to a rise in
Gamifying Recruitment
evident separation between the rich and poor identical to specific subcultures. This particularly evident in Earning points through this system then increases employees' chances of w.nnmg giveaway contests
India where the poor caste remains so over generations as the wealthy maintain their noble class within the recruiting company (e.g., a tablet computer might be awarded every month to a participating
intergenerational moreover color and race that forms part of cultural identification have led to increased employee, with more participation points translating into more chances of winning). This form of
discrimination and these people live at the periphery of village excluded from mainstream society. gamification aims to motivate employees to put forth more effort into the recruitment process improving
the applicant pool by increasing the number of applicants. The recruitment process also can be gamified
Bibliography
through the use of competition. Competitions can include elements of challenge or conflict as we 1 as
1. The office of the Chief Commissioner of Coorg., Historical Summary of the British Rule in Coorg human interaction when players are competing against other people. In a competition for high school
During the past Seventy years, Mercara, Dated 14lh August 1922. para. 12 student computer hackers in order to meet its estimated computer security employee needs. The competition
2. Cole, R.A., Manual of Coorg Civil Law, Bangalore, 1861. was designed to excite young hackers about working in die government sector, hopefully for the Department
ofHometad Security The competition was divided into stages, allowing participants to progress through
3. Connor. P., Memoirs of the Codagu Survey 1817, Bangalore, 1870.
each stage concluding with prize money for the top contenders. As the competition occurred, live-updating
4. Richter, Rev. G, Manual of Coorg - A Gazetteer, Mangalore, 1870. ,pa . uS conc'ua>ng V earned for tasks such as cracking passwords, flagging
5. Moegling, H., Coorg Memoirs - An Account of Coorg, Bangalore 1855. leaderboards tracked Pa^"^^^:; schoo, stude„,s participated in the earliest stage of the
security vulnerabilities,
102
103
■I
competition, and the 40 highest-scoring students progressed to more advanced stages, which also involved
increasingly realistic government computer web security issues. The competition and the associated pri2e CULTURAL DIVERSITY AND ITS IMPACT IN WORKPLACE
money presumably motivated potential job applicants to participate. In the process, students learned more *Jenifer Doreen Barboza **Sanjeevan F
l" year M.com (IB), St. Joseph’s College of Commerce, Brigade road, Bangalore - 560002
about the government sector of computer security and the recruiting organization.
Gamification ofAssessment Introduction:
In addition to improving applicant reactions to selection systems, game-thinking may be used as a re In 21 th century a change in the globalization is due to the modem workforce. The research will be enlightened
placement or supplement to traditional performance assessments. Ideally, serious games or gamified on the workforce of Bangalore, India. The people living in Bangalore has mix culture itself. It influences
assessments would improve the quality of information about job candidates obtained during the selection ! the employees of an organization to know other culture and people. This research is done to examine if
process. For example, performance on a serious assessment game might be used to assess knowledge, there are similarities and dis-similarities between human being. The cultural diversity also includes old-
skills, abilities, and other characteristics of job candidates. Such individual differences can already be
age, children s, youngster s, parents. There are many dis-similarities of expressions between people. It
assessed with psychological tests to effectively predict job performance. However, serious games might
may not be only dis-similarities there might also be similarities between people. So, what is culture
be used to obtain higher quality data in one of two ways. First, serious game performance may be more i
referred here is it referred, to the way people talk, to the way people behave, the way people express, the
difficult for test-takers to fake in an effort to maximize their chances to be hired. Second, serious games
way people dress up themselves.
may be better able to elicit behaviors than traditional questionnaire-based assessments. With either approach i
to gamifying assessment, minimization of negative reactions and maximization of beneficial psychometric | The impact on cultural diversity have many positive and negative effects in the organization and even
properties is needed for legal defensibility and maximum utility. This is best ensured through the processes j among the employees or people working in and outside organization. There are many positive effects on
described by the various seminal documents on test validation, including those produced by the Equal people due to the cultural diversity. The impact has also seen in people from other states such as Tamilnadu,
Employment Opportunity Commission (1978), the Society for Industrial and Organizational Psychology Chennai, Bihar, Kolkata etc., migrating to Bangalore in search of jobs. Bangalore is mix with different
(2003) and the joint efforts of the American Educational Research Association, American Psychological cultures which is also known as “multicultural” place. To have a positive effect in the workforce there
Association, and National Council on Measurement in Education (1999). The guidelines, commonly cited should be various religious people working in the same organization. If there are only same religions
in selection cases within the U.S. legal system, provide specific guidelines for the creation of people working in the organization there may be negative effect on the employees. The negative effect may
psychometrically valid assessment tools. Specifically, tests must be reliable, valid, and fair. lead to conflict, there won’t be any understanding and there will not be any resolution. Due to the cultural
Conclusion diversity in today’s world the organization or the management has to select the respective people who is
Companies generally use these gaming principles to intensify customer’s and employees’ interest in a more knowledgeable in the required field, has good English speaking skills and various other skills. The
brand and deepen their engagement. In today’s highly competitive environment each company includes concept will help to understand how diversity works among the people in Bangalore does. What are the
atleast some Gamification technology on their portals. This may be profile rating, any engagement activity, impact on the cultural diversity on the people working in the organization?
Loyalty programs, wrapper game prizes, hidden tokens, simulated games, employee-of-the-month schemes
or anything that needs interaction from the customer or employees. Gamification personalises adds a fun The review and the interpretation will tell about the study of individual employee’s opinion about the
element to the whole boring recruitment process. It encourages the candidate to engage with your company various questionnaire that was given to rate from 1 to 5. It will help to have a complete study on the
by providing simulated work environment and recruiters also check candidates’ aptitude, creative thinking cultural diversity in the workplace. Now a days the organization will be having or will interpret to have a
and problem solving capabilities. flexible and open atmosphere for the employees were they can share there taught, ideas, innovations and
creativity. To have an open atmosphere the employees need not be of the same culture they can be of any
References culture. The ideas, taught and creativity of different employees will help other employees to shine also.
Arthur, W., Woehr, D. J., & Maldegen, R. (2000), Convergent and discriminant validity of assessment Cultural diversity does not matter until there are no negative vibes within the orgamzat.on winch will
center dimensions: A conceptual and empirical reexamination of the assessment center construct-related make everyone to have a negative feeling for a particular employee or groups. Even though the country has
validity paradox. Journal ofManagement 26,813-835.
influenced by western it has not given up its own culture and socio-economic status. Example: - Deepawal.
Breaugh, J. A. (1992). Recruitment: Science and practice. Boston, MA: PWS-Kent. and Onam celebrations in IT companies, educational institutions, commercial and non-commercal work
Callan, R. C., Bauer, K. N., Armstrong, M. B., & Landers, R. N. (2014, May).
Gamification in psychology: A review of theory and potential pitfalls. Poster presented at the 29th Annual places etc.
Conference of the Society for Industrial and Organizational Psychology, Honolulu, HI. Statement of problem , . .„ ,
Damold, T. C., & Rynes, S. L. (2013).Recruitment and job choice research: Same as it ever was? (pp- Most of the people will have lack of understanding and good communication to their fellow members.
104-142). In I. B. Weiner (Ed.), Handbook of Psychology (2nd ed). New York: Wiley. Wha, is the importance of having diversity a. workplace? Research will throw lights on the benefits of
Greenberg, B. S., Sherry, J., Lachlan, K., Lucas, K., & Holmstrom, A. (2010). Orientations to video games business and how it will work among the employees and also it checks the unpact on bus,ness and all over
among gender growth of the economy. It also wish to accept to know the challenges faced by mdtvrdual and company
■ 104 ■105 91
Objectives
not have a culturally diverse workforce it have to incur expenses of getting their workers informed about
1. To find out differences of factors in cultural diversity which will appears in the workplace.
the culture and work procedures of the foreign countries. Investments might include hiring trainers from
2. To evaluate the comfort of a person with the colleagues of same cultural background and di fferent foreign countries, purchasing documentaries about foreign cultures to show to employees or distributing
cultural background. books, journals, and pamphlets to increase their knowledge about foreign cultures. Within this lime, cost,
3. To determine the effectiveness and essentiality of cultural diversity in the organization. and energy can be saved as workers in-house serve as trainers and practitioners. It helps in the expansion
Scope of an organization’s perspective, approach, strategic tactics, launch of a new product, development of a
This research will lead to find the impact of different cultures in one work place environment which will marketing plan, creation of a new idea, design of a new operation, and assessment of emerging trends
keep the organization vibrant and active which reflects the unity in diversity. Employees will have a belter (Adler, 2002). Adler (2002) identified five fundamental strategies for the management of cultural diversity
understanding of cross-cultures and have a more knowledge about the work. Employees will be able to in the workplace; namely, cultural dominance, cultural avoidance, cultural compromise, cultural synergy,
accept the specific codes and norms in any work environment. and cultural accommodation. Of these, the most desirable strategy is of cultural synergy, which is acquired
through placing value in other cultures without giving up selfculture (Kamal and Ferdousi, 2009, p. 161).
Research methodology
Ongori henry and agolla j. Evans university of botswana, botswana , “critical review of literature on
Nature of the Study: workforce diversity (27TH June 2007), African Journal of Business Management pp.072-076, July 2007,
The research undertaken follows the Quantitative-Opinion based method. It also is an Empirical j ISSN 1933-8233 2007 Academic Journals; he states that diversity has increasingly become a “hot-button”
paper.Methodology: issue in corporate, political, and legal circles. For example, managing workforce diversity is one of the
The research is based entirely on Primaiy data collected from a sample population. The paper has adopted most difficult and pressing challenges of modem organizations. The demographic differences like sex,
the ‘questionnaire’ method for collection of data. The study was done on a sample of 100 respondents age, and were conventionally related to team level outcomes (Williams and O’Reilly, 1998). Managers in
selected on a random sampling basis. public and private organizations will have to understand, predict and manage this intriguing nature of the
diverse workforce. An understanding about the history of diversity management gives an idea about the
Statistical tools used:
evolution of the interest in a diverse workforce in organizations. Individuals and groups need to overcome
Basic statistical tools have been used for the analysis and interpretation and correlation techniques have
stereotypes or prejudices and recognize that actual dissimilar other have unique and valuable information
been used wherever necessary.
that can support group processes and performance (Hartel, 2004).
Literature review
Afzal, fi, mahmood, k., samreen, f., asim, m., sajid, m. “comparison of workforce diversity in public and Analysis
Diversity is all around us and is a huge part of business climate today. All companies strive for diversity,
private business organizations”. Information and Knowledge Management Vol. 3, No. 2, (2013); the authors
so they can have a unique perspective and look at issues through the eyes of their employees. Because
says that organizations spend heavy budgets on diverse training, because it is good for every organization.
companies have realized the value in acquiring a diverse workforce. Today’s workforce made up of a very
Demographic workforce false creates innovations, creativity and more problem solving minds. Equal
employment is done when without giving any priority to attributes such as an employee’s race, color, diverse population of individuals from every part of the world, which creates dynamic multiracial and
religion, sex or national origin to get a good and talented diverse work force which should be on merit multicultural organization. This can be hard to avoid when so many different cultures come together. So, in
(Hansen, 2003). But at the same time author says that simply having a diverse workforce is not necessary order to have a control over on the dynamic and multicultural workplace, we should have clear p.cture of
to get success. When diversity level increases in the organization then it does not necessarily increase the the diversity. So that we could keep the employees comfortable. Because, even the comfort ab.l.ty of an
organization’s performance (Jayne & Dipboye, 2004). Conclusion: Environment should also be advantageous workplace. So, this piece of writing is an attempt to know the
employee also plays a major role in
for the diversity (Taylor Cox, 2008). Using diverse workforce companies should try to change their managers factors, comfort ability and suitability of the cultural diversity.
or human resources and leadership to get the right person at a right place and at a right time (Jo nes, 1989). Sample: The respondents in the sample consisted of corporate employees. 100 respondent m and around
HR managers are in deep trouble due to some changes of diversity. the Bangalore district were interviewed. The respondent had a lot of expenence of workplace dtverstty.
Gillian coote martin, south florida college of arts, science and technology, usa “the effects of cultural The details of the demography of the respondent are depicted in numbers rn the onn o tabulatron. The
diversity in the workplace” journal of diversity management- December 2014, Volume 9 Number 2; the sample size was good enough to understand the psychographrc charactenstrcs of the employees.
author stays that the knowledge of culturally diverse workers can be useful for the organization is the
Inferences: the outcome of die study can be analyzed for each of the questions asked in the interviews. Each
tendency ofthe workers to inform the concerned employees or managers about the culture of their respective
countries which helps when they work as expatriates in a foreign country. Normally, organizations that do of the questions covers different elements of cultural drversity.
107
106 i'
Redefining Strategies For International Markets H
The analysis is as follows:
Your state
Gender
• Karnataka
• Kerala
• Male
t> TamfnaSu
© Female • Anflra praflesh
• C:r»rs
Inference: among the sample population of 100 respondents, 62% of them are belongs to Karnataka state. 12%
of them belongs to Tamilnadu state. 10% of them belongs to Andrapradesh state. 9% of them belongs to
Inference: among the sample population of 100 respondents, 64% of them are males, and the remaining Kerala state. And the remaining 7% of them belongs to the other states
36% of them are female. Number of Languages known.
Age group TOO responses
© i
®2
• 21-30
«3
• 31-40
©4
41-50
• 5
• 51 -60
© More man 5
• 60 More
Inference: among the sample population of 100 respondents, 33% of them knew 4 languages, 23% of them
Inference. Among the sample population of 100 respondents, 48% of the respondents belongs to the 21-30 knew 3 languages, 22% of them knew 5 languages. 14 of them knew 2 languages. 7 knew more than 5
age group. 22% of the respondents belongs to the 51-60 age group. 19% of the respondents belongs to the languages. Remaining one percent of them knew only one language.
41 -50 age group. And the remaining 11 % of the respondents belongs to the 31 -40 age group. None of them
belongs to the 60 above age group. Mother tongue
: OS respon«e$
Education
1CO responses 40
31 <3156)
30
• Primary
• Intermediate 15(15=6)
20
C Undergraduate j i 12(12*) 11(1156)
• Postgraduate
6-6=5; ' |
10
^rrllxlxi
Asnu Kannada
« 2 :2:= 1 i:, ■ l-;1=5;
Maiaya’am
Rc Konkani
Tamil
kiwi <i*;2 ^Siu*)
Urdu
kortcars
Konkani
Gujarati
Inference: among the .ample population of 100 respondents, most of thdr motiiertongue^ Karmad01%
Inference: Among the sample population of 100 respondents, 51 % of the respondents are under graduates.
31 % of them are post graduates. And 17% of them are intermediates. Remaining I % of them belongs to the
primary category.
‘ongue like Gujarati, Konkani, Urdu and Malayalam.
■ 108
109
What is the percentage of people from the... same. cultural inference: among the sample population of 100 respondents, 32% of them feel comfortable with the same
background in your close circle in the office?
cultural people, 31 /o of them feel natural because same and difference cultural people, 20% of them feel
more comfortable with the same cultural people. 7% of them do not feel comfortable with the same
• 25% cultural people and the remaining 10% of them are not at all feel comfortable with the same cultural people
• 50% around them.
Ij 75%
• 100%
In your opinion which is more productive team ?
• A to*"' -■ >si a" its members v. 'n tne

same cultural background
Inference: among the sample population of 100 respondents, 42% of the respondents have got 25% people • A warn v.131 a; .is member; ..in tne
different cultural background
from the same cultural background in their close circle in office. 36% of them have got 50% of the same
cultural background. 18% of them have got 75% of the people from the same cultural background. And
remaining 4% of them have got all the people from the same cultural background.
How comfortable do you feel working with the people from the.
different...cultural background? Rate it.
:Q0 itsponsw
Inference: among the sample population of 100 respondents, 30% of the respondent feel that a team consists
of all its member from the same cultural background is more comfortable. Because of the people could
• 1 star
• 2 star work more comfortable with the same cultural background. &0% of them feel that team with all its member
• 3 star from different cultural background would be more productive. Because when there are different cultural
G -1 5131
• 5 star
people, the angle of evaluating issues will be different form each others. So, then the ultimate result would
be more effective.
In your opinion why do we need diversity in the organization?

100 responses
55 (55%)
Mutual respect .
Inference: among the sample population of 100 respondents, 33% ofthem feel comfortable with the different
Mutual respect among the members
cultural people, 32% of them feel natural because difference culture people, 28% of them feel more Conflict resolution 28 (28%)
Count 55
comfortable with the different cultural people.6% of them do not feel comfortable with the different cultural Business reputa . -24(24%)
people and the remaining 1% of them are not at all feel comfortable with the different cultural people
20 (2055)
around them. Job promotion
25 (25%)
increased expos .
How comfortable do you feel working with the people from the.
20 30 40 50 60
same.... cultural background? 0 10
100 responses
Inference: among the sample population of 100 respondents, the cultural diversity is essential for an
• 1 star organization because to have a mutual respect among the members of an organization.
• 2 star
28% of them say it is essen tial in order to resolute the conflicts which occurs in the workplace more
• 3 star
• 4 star
• 5 star effectively. Some of them feel that it is required in the organization just because of the business expressions.
24% of them feel that it is work for a company in order to maintain the reputation of the company.
*»
II 110 t' 111
Conclusion: EMPLOYEE ENGAGEMENT AND ITS IMPACT ON ORGANIZATIONAL
As the methodology explains that many people have different views and expectations it is understood that GROWTH WITH SWITCH MODEL
diversity at workplace will be more effective than one single cultural background in the present scenario. * Ms. Reshma Sultana P.H ** Mrs. Jesin John***Dr.Irfan Mumtaz
It is also opined to have different view in workplace where the growth of company and individual will j Asst Professors, Department of Management
affect immensely with the positive effect. It is observed that the employees working in the organization can Teachers Academy Degree college, Bangalore -43
be provided various activities which is related to game, cultural programs and even performance appraisal ***Professor, Al Ameen Institute of Management Studies Hosur Road, Bangalore
by giving voucher’s or certificates.
Introduction
Reference:
1. Copeland, Lennie. (1988). Valuing Diversity, Part 1: Making the Most of Cultural Differences at the Employee engagement is capturing the attention ofHR executives and it is also a key challenge of today’s
Workplace. modem workforce. Employee engagement is interwoven significantly with important business outcomes.
2. Adler,N.J. (1991). International Dimensions of Organizational Behavior, Boston: PWS-Kent Publishing The ability to engage the employees, and to ensure that they contribute to the organizational growth and
Company. productivity, is one of the ongoing organizational conflicts in today’s global world of business.
3. Bergmann, B.R., Krause, W.R. (1968). Evaluating and Forecasting Progress in Racial Integration of Employee engagement is a gateway for a successful business performance. It is these engaged employees
Employment. Industrial and Labor Relations Review. 18,399-409. who lay the foundation for a good working environment. Several studies have found causing positive
4. Blau, P.M. (1977). A Macro-sociological Theory of Social Structure. American Journal of Sociology, relationship between employee engagement and organizational growth.
83, Brown, G and Harris, C. C. (1993). The Implications of Workforce Diversification in the U.S.
Forest. Service. Administration and Society. Modem organizations cannotjust rely on the traditional concepts like employee satisfaction to help, retain
5. Copeland, L. (1988A). Making the Most OF Cultural Differences at the Workplace. Personnel. the best and the brightest employee, instead they must work to develop and nurture employee engagement,
6. Cox, T.H., and Blake, S. (1991). Managing Cultural Diversity: Implications for Organizational. activities which requires a two-way relationship between employer and employee.
Effectiveness. The Executive.- Cultural Diversity: Implications For Workplace Management (PDF Most of the employees want better and more opportunities at work that gives them a sense of commitment,
Download Available)
satisfaction and accomplishment. This is possible only when they find meaning at work. Ameaningful job
at work has the potential of bringing the employers and employees together. Such working environment
provides both the employer and the employee the space to experience and explore themselves and have the
opportunity to make contributions towards the organization. This two-way relationship is the strongest
predictor of organizational performance and key to engaged work force.
Employee engagement is a complex and dynamic process. It has positive linkages to several bottom line
organizational profits like productivity, business growth, quality, customer satisfaction, talent acquisition,
and retention and job performance.
Thus Employee engagement as a state of mind is where one feels satisfied, empowered, and committed at
work. Engaged employee are highly creative and can be an asset for an organization as they have the
potential to perform, but the crux here is to understand and extract the potential they have, as they are
emerging leaders and managers ofthe 21 st that demands more efficiency and effectiveness in the management
styles than any other times in history.
Employee Engagement: Definitions

Engagement has been defined in numerous different ways by academic researchers, consultancy and research
institutions and companies.
112 i1
113
■I
The International Survey Research (1SR) defines employee engagement as, “a process by which an j
organization increases commitment and continuation of its employees to the achievement of superior results.” j
The Gallup Organization, potentially the most widely recognized name associated with employee engagement Individual At Work
Scrvicc/Entcrprise
due to their bestselling book, “First, Break All the Rules,” defines engaged employees as those who, An
Helps in retention of talented &
“work with a passion and feel a profound connection to their company” and ‘ drive innovation and move Work life balance and security Employee engaged employees
Career growth &opportunities Engagement Boost productivity
the organization forward”
Rewards & excellence Envisage Yields profits & leads to organizational
William H. Kahn (1990) completed some of the earliest work on engagement and defined engagement as, growth
“the harnessing of organization members’ selves to their work roles; in engagement, people employ and
express themselves physically, cognitively, and emotionally during role performances.
A Conceptual Envisage Of Employee Engagement Country

Employee engagement is concerned with employees’ beliefs and perspectives about the organization,
Employee engagement as an instrument of organizational growth can only be facilitated through workplaces Increases the economic status
by providing a frame work of a common purpose. The initiatives of improvement which are taken by Better standard of living
management cannot be fruitful without the willful contribution and engagement of employees. Global recognition
Individual at work
Employee engagement is “Feeling Valued” at a workplace. This can be established by mutual respect in
the workplace, for what people can do as individual employees. In such a positive working environment Review of literature:
Literature for this review was predominantly sourced from general internet searches and the use ofonline
employee can harness their skills sets and accomplish their goals. The impression that the firm cares for
and values the employees provides them a work life balance and job security, further enabling the managementjournal.
opportunities of career advancement recognitions promotions and excellence at work. Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee
satisfaction, employee engagement, and business outcomes: Ameta-analysis. Journal ofApplied Psychology,
Service/Enterprise
87,268-279.
As organization’s globalize and are more abreast with technology and innovation, there is a greater need to
connect and engage with employees to provide them with an organizational identity. An organization’s This article summarizes findings linking employee engagement with business outcomes, including customer
satisfaction and loyalty, profitability, productivity, employee turnover, and safety. It is important to examine
capacity to manage employee engagement is closely related to high productivity levels of performance and
business-unit-level relationships because it is at this level that employee survey data are typically used by
superior business results. Engaged employees make use of their skills sets and contribute to bottom line organizations. Productivity and profitability are more weakly related to engagement, probably because
business success representing the company and its services and improving customer satisfaction and service
they are affected by many factors besides employee performance.
levels. Employee engagement is of a great significance for any organization that seeks to retain valued
and individual well-being: exploring the evidence,
employees to yield greater profits for a sustainable business prospects. Employee engagement, organisational performance
developing the theory.
Country Catherine Truss, Amanda Shantz, Emma Soane, Kerstin Alfes & Rick Delbridge Pages 2657-26691 published
With the rapid changes happening across the globe in a hyper connected working environment of today’s online: 24 May 2013 resource management (HRM) theory has
modem virtual organization, employee engagement is been linked with higher employee retention and This article deals with the development of mainstream human
productivity. This yields greater income and profitability for organizations, enabling them to build a nation long been concerned with how people management can enhance performance outcomes. It is only very
of strong economic health, with greater standards of living and on the whole making the nation globally recently that interest has been shown in the parallel stream of research on the link between employee
engagement and performance, bringing the two together to suggest that engagement may constitute the
recognized as an exceptional and great place of work.
ntechanism through which HRM practices impact individual and organisational performance.
Thus this conceptual envisage of employee engagement gives a quick tour that depicts a profound
Positive organizational behavior: engaged employees in flourishing organizations
connection between Individual employees, enterprise and the nation as a dominant source of competitive
advantage for a sustainable business economy. AnthorsAmold B. Bakker,Wilmar B. Schaufeli.Firstpublished: 15 January 2008
i'K 115
This editorial introduces a special issue of the Journal of Organizational Behaviour on positive organizational "1
behaviour (POB). POB emphasizes the need for more focused theory building, research, and effective
Work-Life Balance
i
Change is the order of the day. The relationship between work and pleasure is one of the important
application of positive traits, states, and behaviours of employees in organizations.POB will also show components that contribute to work life balance. Today most of the corporate world has shifted their
the added value of the positive over and above the negative organization behaviour. In addition, the emerging focus on optimum Work Life Balance as it is co-related with employee commitment, employee
concept of employee engagement is briefly introduced. The papers in the special issue describe exciting engagement, retention, mental health & productivity. Work life balance and the empowerment to make
positive organizational behaviour studies that each tap into an interesting direction. decisions at work place leads to an optimum equilibrium between work and personal well being
contributing to productive work culture ofengaged employees.
This paper tries to emphasize on the importance of Employee Engagement using SWITCH model and
its impact on organizational growth. Striving to maintain a higher level of employee engagement not only > Initiative
contributes toward organizational survival, but it is also a key factor that depicts the efficiency and Organisations with high levels ofengagement at work, support employees in taking initiatives. Highly
effectiveness of a supportive work culture of modem management. engaged employees are intrinsically motivated, they initiate and invest themselves in more productive
work when they view that the organisation and their job roles as more meaningful and therefore
Objective of the study: engaged employees are more likely to support the organisation for its growth and susainability.
Focus of this study is to promote a culture supportive of Employee Engagement through “SWITCH Model” | > Trust
a driving change initiative among today’s diverse workforce towards organizational profit. An engaged employee is a valuable asset of an organization. Organizations need to connect with their
Switch model-The essence of being valued -Mantra of Modern Management employee and establish a foundation of trust .This can be made possible with the employee- employer
This article gives a better insight and understanding about Employee Engagement and its impact on relationship and interactions.A greater shared understanding of workflow will strengthen the bond
organization growth with Switch Model- The Essence of Feeling Valued. between the employee and employer and will proactively help in instilling trust and confidence in
each other and creating a healthy environment of employee engagement, motivation and retention.
Switch Model-The Essence Of Feeling Valued.
> Commitment
Reaping business results is possible only when the employees of the organization are completely
engaged and committed to their work. Employees feel committed towards an organization, only if it
values its employees, by providing them an opportunity to perform well at challenging work with
recognition, positive excellence and fair compensation. Therefore highly committed and engaged
employees contribute towards organizational performance.
> High productivity The power of employee engagement is that, it is closely linked with business
results. When employees work in a healthy and positive environment they can focus their attention on
work and given in their best .An organization with highly engaged employees will translate effective
resources, towards organizational efficiency and effectiveness leading to higher levels of productivity
and faster revenue growth and profitability.
Discussion
To fuel higher levels of business performance and to foster the culture of employee engagement in
organizations, organizational leaders should proactively involve and prov.de a sense ofdtrect.on, support
> Synergy at Workplace and environment of inspiration, loyalty, and motivation, for building a strong employee engaged workforce
that has a great impact on organizational success.
*jll£~l§£=5====
growth and profit. Organization must involve employees more deeply by inviting them in participative
The Switch model of employee engagemen.-The essence of feeling valued is a study that expands the
awareness on employee engagement and its impact on organizational growth in today s emerging economies
of business world wherein through this frame of article the study demonstrates hat feeltng valued by
y 117
HI
Conclusion AN EVALUATION OF THE DISTRIBUTOR MODEL FOR THE MARKETING
The current study addresses the need of the hour “employee engagement and its impact on organizational OF LPG PRODUCTS BY MNCS - A CASE STUDY OF TOTAL GAZ
growth” demonstrated by SWITCH model, providing a scope for meaningful work characterized by job *Dr. Catherine Nirmala Rao**Deepak Sequeira
satisfaction, commitment, work life balance etc which are the predictors of employee engagement .Ifthese
* Associate Professor & HOD, St. Agnes Centre for Post Graduate Studics„Mangaluru
key drivers are incorporated in the human resource practices of today’s work force culture then it can
**Sales Executive,Total GAz & Student, I MBA (IB) ,PG Department of Commerce,University
bring about a strategic change in understanding employee-employer relationship contributing to business
success and making organization a great place for work. Evening College
Bibliography Introduction
Agrawal, S., & Ojha, R. P. (2016), “Employee engagement in new business horizon,” (Article in Press). Marketing of petroleum products has witnessed a paradigm shift. Post deregulation of the sector, private
Agrawal, S. (2015), “Predictors of employee engagement: A public sector unit experience”, Strategic HR players has opened new outlets after fulfilling certain investment condition. Ever increasing need and
Review, 14(1/2), pp. 57-68. Brown, S. P. (1996), “Ameta analysis and review of organizational research expectations of the customer is changing the operational economics of the retail outlet. Consumers are
on job involvement,” Psychological Bulletin, 120(2), pp. 235-255. demanding more convenience in the form of comfort, product options and fleet-monitoring services. While
Baumruk R, Marusarz T (2004), Employee Engagement: Insights into Why It Matters and What You Can retail outlets are heeding to them and revamping their operations by offering better visual identity, fuel
Do About It, Hewitt Associates LLC branding, value added services offering to the vehicles moving into the outlet, issuing petro cards, fleet
Catteeuw F, Flynn E, Vonderhorst J (2007), 'Employee engagement: boosting productivity in turbulent monitoring services and providing one-stop shop for consumers. There are different types of retail outlets,
times', Organization Development Journal, 25 (2), 151-157 Type “A” Sites, where the outlets are on land which is owned or leased by the OMC’s. Type ‘B’ sites are
Harter JK, Schmidt FL, Hayes TL (2002), 'Business unit level relationship between employee satisfaction, those in which the dealers at these sites own or lease the land and building, however they leaseback the
employee engagement, and business outcomes: a metaanalysis', Journal of Applied Psychology, 87(2), same to the OMCs. Type ‘C’ sites are where the dealers own or lease the land and building and Type ‘Cl’
268-279 sites where dealers own or lease the land, building and equipment.
Judge TA, Thoresen CJ, Bono JE, Patton G K (2001), 'The job satisfaction job performance relationship:
a qualitative and quantitative review', Psychological Bulletin, 127,376^407 Total major energy operator
Total SocieteAnonyme is a French multinational integrated oil and gas company and one of the seven
Lloyd Morgan (2004), Driving Performance and Retention through Employee
“Supermajor” oil companies in the world. Its businesses cover the entire oil and gas chain, from crude
Engagement, www.lloydmorgan.com/PDF/Driving %20 Performance %20 and %20 Retention % 20
Through %20 Employee %20 Engagement, pdf oil and natural gas exploration and production to power generation, transportation, refining, petroleum
Luthans F, Peterson SJ (2002), 'Employee engagement and manager self efficacy: implications for product marketing, and international crude oil and product trading. Total is also a large
managerial effectiveness and development', Journal of Management Development, 21 (5), 376-387 scale chemicals manufacturer. Total is a major player in solar energy with Sun Power and Total Solar.
PHRPS Research Committee (2002), The Relationship Between Employee Engagement and Total’s history began in 1924, with the creation of Compagnie Franâise des Petroles (CFP). At the
Productivity, www.phrpg.org/research.htm time, the Company produced oil in the Middle East. Over the years, they have expanded internationally
WEB-SOURCES and diversified into gas, refining, petrochemicals and petroleum product marketing, as well as solar
• Google search power, bioenergies and energy storage. The Company has been innovating for nearly 100 years to
• Education.com meet their customers’ expectations. With operations in more than 130 countries, Total is a top-tier
• Times news international oil and gas company and a Major Player in Low-Carbon Energies. The Company
• Worldwidej0umals.com discovers, produces, processes, sells and markets energy in a variety of forms, all the way to
end-customers. Committed to better energy, their staff of 1,00,000 employees helps provide
customers throughout the world with products and services that are safer, cleaner, more efficient,
more innovative and accessible to as many people as possible. In this study, an attempt is made to
analyse the operational economics of a retail outlet and different marketing models and examine the
Distributorship Model as a succ essful model for the marketing of LPG by Totalgaz.
Review of literature , . .
Escudero, Quintana and Salmeron, proposed an LP model that handles the supply, transformatton and
distribution of an oil company that accounts for uncertainties in supply costs, demands and product
Prices.
118 119
0
Dempster, Pedron, Mdedova, Scott and Sembos, applied a stochastic programming approach to planning can choose from a wide range of strategies, using a variety of outside production and sales solutions to
problems for a consortium of oil companies. First, a deterministic multi period linear programming bring its products to the end-customer. Integrated (or concentrated) distribution is a form of commerce
model is developed for supply, production and distribution. The deterministic model is then used as a in which the company itself creates a relationship with the end-consumer, with few or no outside
basis for implementing a stochastic programming formulation with uncertainty in product demands intermediaries. Exclusive distribution grants distributors the absolute right to sell products within a
and spot supply costs. specific territory and, in exchange, distributors agree to comply with certain requirements regarding
More recently, Lasschuit and Thijssen, pointed out how the petrochemical supply chain is organized points of sale and customer services. This system is commonly used in the luxury sector. Under such
and stress important issues that must be taken into account when formulating a model for the oil and agreements, the product is offered at specified retail outlets and geographical areas. They help the
chemical industry. Important developments of subsystems of the petroleum supply chain can be found company control logistics costs, track customers and manage sales promotions. Thus the right choice
of strategy for the right market is imperative for every company.
in literature.
Need for the study
Iyer, Grossmann, Vasantharajan, and Cullick and Wang, litvak and Aziz, developed a multi period
Distributors are the key players in the globalization process. Selective distribution is a strategy that
MILP for planning and schedule offshore oil filed infrastructure investments and operations. The
involves selecting distributors based on their sales team (training, staff size and so on), the location
nonlinear reservoir behavior is handled with piecewise linear approximation functions. A sequential
and visibility given to the brand’s products, and the features of its retail outlets, such as selling area,
decomposition technique is applied.
decor and promotions. In addition, the supplier selects a very limited number of distributors within a
Van den Heever and Grossmann, presented a nonlinear model for oilfield infrastructure that involves specific geographical area. Another type of indirect distribution is franchising, which involves providing
design and planning decisions. The authors consider nonlinear reservoir behavior. A logic based model a turnkey business model to partners under contract. With this form of collaboration, the franchisor
is proposed that is solved with a bi-level decomposition technique. This technique aggregates time who owns the brand and provides the expertise receives compensation or an economic benefit. There
periods for the design problem and subsequently disaggregates then for the planning sub problem. may also be franchise agreements that include exclusive territory and/ or supply provisions; in this
case, the franchisor acts as its franchisees’ exclusive supplier. This study attempts to evaluate the
Bok, Lee, and Park, addressed the problem of long range capacity expansion planning for a petrochemical Distributor’s model used by Total Gaz in its sales strategy and how it has proved to be a success driver
industry.
in this challenging oil industry.
Ross, formulated a planning suppler network model on the petroleum distribution downstream segment. Objectives of the study
Resource allocation such as distribution centres new and existing and vehicles is managed in order to 1. To evaluate the Distributor’s model used by Total Gaz in the marketing of petroleum products.
maximizing profit. Delivery cost is determined depending on the geographic zone, trip cost, order 2. To analyse the challenges faced by the company in the use of the various channels in the distribution
frequency and travel distance for each customer.
of products by Total Gaz.
Iakovou, proposed a model that focuses on the maritime transportation of petroleum products considering Methodology
a set of transport modalities. One of the main objectives of this work was to take into account the risks This study is based on both primary and secondary data. As the researcher is an employee of Total
of oil spill incidents. India Pvt. Ltd, information was collected from Total Gaz management and company officials. It is
Magatao, Arruda, and Neves, propose an MILP approach to aid the decision making process for schedule also descriptive where the focus is on fact finding investigation with adequate interpretation. For this
commodities on pipeline systems. purpose secondary data was collected from company reports, brochures, books, journals, conference
proceedings, Government reports and websites.
On the product storage level, Steble, Arruda, Fabro, and Rodrigues, present a model involving the
decision making process on storage operations of Liquified Petroleum Gas (LPG). Findings of the study
Role of Distributors - Every sales strategy and the choice of distribution channel(s) depends on the
Statement of the problem product, the costs and the channel's advantages as well as its ability to satisfy the demands of the target
Direct sales are not the only effective and appropriate solution for meeting market demand in the case market. When a company wants to increase sales or export products, it often decides to use intermediaries.
of petroleum products. Choosing the right distribution channel is a strategic factor in a company’s It certain B2B markets, manufacturers have little direct contact with the end-market except through
success. It is necessary to find out what are the benefits of relying more on indirect sales techniques their distributors so it's essential to know how to motivate the sales representatives working for the
and distributors. Over the past 40 years, distribution channels have become a major issue in international distributor networks “Recent research has shown that the relationship between the manufacturer's
trade. In view of rising global competition in the late 20th century, companies began trying out new brand and the distributors' sales staff played a vital role, even when the distributors had set up a
distribution channels in order to become more flexible and responsive. They had to rethink the strategies financial incentive system. In the luxury sector, the sales representatives role is also decisive for
they had developed to meet demand and penetrate new markets, “ says Joe De Santis, Managing conveying to customers the elitist, even 'sacred,' character of the brands, sari marketmg professor
Director of an American business consulting firm. There are different types of distribution, Companies Dominique Rouzies during an interview at the Harvard Business Rev.ew.
II 120
‘i
121
Table 1: TOTALGROUP- RATIONALE OF DISTRIBUTOR MODEL Sharing of competitors’ strategy To be their distributors’ preferred or even exclusive supplier
Sales volume through Distributors 50% of lubricant sales worldwide To be one of the top three brands they sell
model Strategy to achieve the goal of To increase brand awareness and improve their reputation for
Markets where Distributors play For penetration of new markets being the top three brands technical expertise
key role Typical distributor profile Often medium-sized family-owned businesses
Markets where direct sales are Old markets where the Company has been operating for a long They operate on trust and are concerned about building solid
employed time relationships.
Reason for employing distributors They are already on site Some tend to specialize in a certain segment.
in new markets They are familiar with the market and local cultureThey save time Some tend to be regional specialists
for the company___________________________________ All of them are very meticulous about the quality of the products
Choose a local distributor and brand they sell because it is their business and their money
Process of import of lubricants
When sales have reached a certain level, the question arises as to and they are at the point of feeling an emotional bond with them
whether the company should open a subsidiary in the country. Brand decisions on whether to A brand is an asset, and both of our brands have a bright future.
market TOTAL OR ELF ELF products are supplied when they provide a specific benefit -
Import Strategy Direct selling to a few strategic customers and key international
for example, at Renault and in the motorcycle sector, where ELF
accounts. Local distributors are given the rest of the market.Role
and TOTAL have different market positions. When TOTAL has a
of distributor is complementary with that ofthe company.
healthy market share, ELF is introduced to further increase sales.
Opening of a subsidiary Distributors see a rise in sales volume That’s the case in Africa, for example. In markets where ELF is
Brand awareness grows at the same time much better known than TOTAL, Company supports their ELF
Benefit of indirect sales when the Easier to cover the entire market distributors while growing the TOTAL brand, as they are doing in
company has local operations Sales force can focus on a few major accounts or segments Poland and Argentina.
Number of distributors in India and More than 500 Aside from these situations, company asks their distributors to go
China Figure varies by country with TOTAL since it’s the brand we’re focusing on._______
Small countries have only local distributor. Distributors view of Total They feel safe about buying Total’s products They value Total’s
Is the company looking to increase No, the company aims to work with fewer partners and target the expertise.
the number of distributors? distributors that are the most professional They’re in direct contact with customers so they want flawless
Criteria for Distributors Right size, not to oversee several small players. customer service.
Have the critical size to make sure that they provide high-quality They push Total to strive for excellence, especially when they’re
service to the customers working with the other majors. For example, they helped drive the
To find the best system possible for each country decision to launch e-leaming sessions and the Total Distributor
Decide whether to specialize by geographic area or type ofmarket Portal, a website specifically designed with them in mind. With
Difficult in countries where awareness of the company’s brand is the rollout of the Distributor Management System in our
still low subsidiaries, the company is building more professional
Contrast with competitors strategy Total like its competitors, does not subscribe to the relationships.
They need to be reassured that the Company is devoting enough
macrodistribution strategy of Shell or Exxon Mobil which are resources to product development. Total organises a visit to their
withdrawing from entire regions and leaving their business to a Soiaize Research Center in France for distributors which is very
single distributor.Single distributor model is a low cost model,
but it keeps them far away from the field effective_________________________________
Total’s dynamic strategy Regularly help distributors with customer support and certain Other strategies and sales channels Emerge nee of online central purchasing groups serving multiple
technical support programs customers
122 *' \ 123

■I
as well as aggregators that use a single website to centralize the 41 countries have launched Distributors Management, 22 more countries did so by the end of2016. 350
merchandise needed by a certain business segment. With these more employees have taken the three-day DMS training course and 32 countries targeted for the Distributor
models, new players are capturing part of the margin. But the portal
company can do the same thing. Marketing & Selling distributors
To remain a go-to supplier, Company also has to offer more Many businesses choose to sell our products without being employees of or affiliated with Total. These
services.__________________________________ are distributors, resellers and station and the percentage of sales they represent are as follows
Strategy used by Marketing & Sales Total’s business lines often don’t use the same distributors. Rather
A distributor can sell a single brand or multiple brands and may or may not specialize in a specific
for all of its businesses than implement the same sales practices, the challenge for the
industry.
businesses is to share their customer knowledge.
Company is continually seeking to learn more about the end user In general, distributors resell products to another company (an end customer or another intermediary) and
as a way to improve our sales methods; it clearly makes sense to not to individual customers (except in the case of service stations).
sell a high-end lubricant to a Total Excellium customer! -* They set the prices themselves.
They sometimes bypass distributors in order to direct customers -*■ They focus on a specific geographic area.
to our own points of sale - our Rapid Oil Change outlets, for -+ They have their own organization and use their own logistical, marketing, sales and other resources.
example. But distribution is still an essential model. Total
-*■ They play an active role in selling the company’s products.
Lubricants also acts as a distributor. Arkema and Lubrilog, a small
French business, asked Total to sell some of their brand-name -+ They provide technical support
products abroad. These are attractive additions to their own product The following table shows the Sales via distributors, by business
lines. * Adblue: an additive used in certain diesel engines to reduce
the emission of nitrogen oxide. Table 2 - Percentage of sales volumes through distributor model for various products
Total’s goals can be summed up as follows: reduce the number of distributors, develop a more professional Nature of the Product Volume of sales by distributors
way of monitoring them, and become their preferred brand. Bitumens Less than 1 % Most sales are made by the company’s own commercial executives
to construction companies. The only exception: a few sales in France.______
Distributor Management System
Total Lubricants has developed a method and tools for effectively managing distributor relationships. This Aviation Around 3% Most sales are made to airline companies through a bidding process.
approach has proven successful in many subsidiaries. While the Distributor Management System (DMS) Company however, works with about 20 resellers, generally airfields and
was created in the Americas region, where distribution represents nearly 67% of sales, it has gradually brokers, i.e. intermediaries between buyers and sellers on the financial markets.
spread throughout M&S. This five step process can be used by every entity that sells lubricants through Network 46.5% of Dealer Owned DealerOperated (DODO) stations. More than 7,400
distributors, clarifying each party’s roles and responsibilities. The goals include independent station managers use the logo and sell Total’s fuels._________
Special fluids Around 15%. Over 130 distributors specializing in chemical products resell
• Improved market coverage, an appropriate pricing policy and optimized sales forces. In short,
with DMS, the company turns the distributor into a long-term partner with shared objectives. With products worldwide.___________________________________
ACS (American About 8% Some 40 dedicated distributors market their specialized additives
a step-by-step approach, the method describes how to analyze the market, which criteria to use for
selecting your distributors and how to monitor their operations. Chemical Society) and fuels around the world.____________ _______________________
Over 85% of bottted gas sales White the Company directly makes most of their
• Distributors receive a toolbox for carrying out each step, including sample contracts, evaluation GPL(LPG in Italian)
hoik sales. 675 distributors handle the majority of bottled gas sales worldwide.
forms, checklists and the Total Distributor Portal website. This website centralizes information
Lubricants Nearly sn% Total works with over 5,000 distributors.------------------------
sheets, the latest news about the brand and marketing materials for your distributors.
7^J^tetoSOdistributoK supermarkets, fishing cooperatives, fish
General trade
• Company also gives them the option of ordering online. Distributors might also be inspired by a . ..........a wriatived resellers (for fishing, institutions, etc.). * Scope: France only.
few other ideas included in the method, such as an application used in Egypt to list all of the management divrsron)
country’s Lubricant points of sale and the Total Marketing Middle East website, which allows Domestic heating oil
distributors to order their “goodies” online. Marine Fuels Less than 1%
II- A 125
CHALLENGES FACED BY MANAGERS WITH DISTRIBUTORS IN DIFFERENT PARTS OF "So far’ Total has been successful Wang care of .he gas shops. This is,he nrain rcasou why TOTAL is a
THE WORLD brand appreciated by their end consumers,” says Thuong-Duc. Making sure ,ha, the company talks both to
In the U.S.A-According to Jean-Frangois Pinharanda distributors enhance the company’s sales process distributors and the,r customers does seem to be paying off: lhey havc a 12% market sharc in sma|, LPG
in the United States, which has a robust Special Fluids entity. In the rest of the AME region, where they cylinders in Vtetnam, and it is steadily increasing. The subsidiary is confident it will reach the target of
have smaller sales forces, they are the key pillar of the business 130,000 annual tons in the coming years.
Company recently set up operations in the Americas region and few subsidiaries have a sales representative Conclusions & Suggestions
exclusively dedicated to special fluids. As a result, the region mainly relies on distributors to increase The determination of the marketing model depends on a number of factors including geographical location,
solvent sales. Distributors need special transportation and storage conditions plus a sales force that local tax rates, throughput and proximity of competitors in addition to offerings needed by the customers.
covers the entire territory. During the pre-liberalization period, OMCs had exclusivity in sales of retail fuel, thus the Dealer Owned
DealerOperated (DODO) model worked well. However, with deregulation and changing customer needs,
In France, Total’s distributors are real partners when it comes to expanding the market, says Jean Francois
COCO model has its inherent benefits. Thus, the whole process of model determination is to increase the
Pinharanda. In each country, the subsidiary manages one or more distributors. Together they discuss costs throughput per outlet and thereby sales and reducing the overhead cost of maintenance and ainning of the
and the best way to remain competitive. The distributor makes a commitment to following Total’s sales outlets.
policy, especially regarding segmentation of products into product lines specifically branded for each
use. Bibliography
Christopher, M. and Lee, H. 2004. Mitigating supply chain risk through improved confidence: International
The distributor is also responsible for imports. This working relationship can be far-reaching - when, for
Journal of Physical Distribution & Logistics Management: 34,5:388-96.
example, the subsidiary buys back the products. In Brazil, they will be selling directly to their American
customer Flint Inks, which is launching a business there, but it’s their distributor Quantiq, the country’s Christopher, M. and Peck, H. (2004), Building the resilient supply chain: International Journal of Logistics
largest chemicals distributor, distributor Quantiq, the country’s largest chemicals distributor, that will be Management: 15,2:1-13.
taking care of logistics. Coia, A. 1999. Integrating oil’s supply chain: Traffic World, 259,2. Cox, A. 2004. The art of the possible:
relationship management in power regimes and supply chains: Supply Chain Management: An International
While distributors handle most sales in Brazil, Chile, Peru and Mexico, the situation is different in the Journal, 9,5: 346-56.
United States. Their business is better established in the region’s largest solvents market, which has
de Bakker, F. & Nijhof, A. 2002. Responsible Chain Management: A Capability Assessment Framework:
hosted our new HDA factory, located in Bayport, since 2015. “Total’s distributors are very valuable,
Business Strategy and Environment: 11,1:63 75.
because they help the Company to be more responsive and widely cover the market. Yet they only account
Engardio, P. 2001. Why the supply chain broke down, Business Week: 3724, 19, 41. Encyclopaedia of
for 50% of Total’s sales. The goal remains to increase direct sales,” says Peter Egan. This challenge
Nations (2010) Ford et al. 1998. Managing business relationships: London: Wiley. Forrester, J.W.1961.
remains within sight due to the business’s maturity and the size of its staff, which now stands at nine.
Industrial Dynamics. MIT Press, Cambridge. Gain, B. 1997. PPG BASF swap businesses: Chemical
In Vietnam, small LPG cylinders are sold via distributors. These distributors, or dealers, supply through Week, 159,33.
small gas shops. Total’s strategy is to work with only the biggest dealers in order to ensure that they have Guimaraes, T., Cook, D„ & Natarajan, N. 2002. Exploring the importance of business clock speed as a
the correct logistics to reach all the gas shops scattered throughout Vietnam. Even so, the number of moderator for determinants of supplier network performance: Decision Sciences. 33,4: 629.43
distributors they manage is impressive, over 100. They sell more than 110,000 tons of Total’s products Guinipero L and Brand R 1996. Purchasing role in supply chain ml46anagement: The International
each year. To interact with their distributors, Total Vietnam has a sales team of 30 people spread around Journal of Logistics Management, 7, 1: 29-37. Gunasekaran et al. 2008. Responsive supply chain:
the country, close to the market. “They don’t simply work on their relationship with their distributors.
competitive strategy in a networked economy. Omega: 36,549 - 564.
They are an indispensable help, especially from a logistics point of view, in ensuring they cover the
Gunasekaran et al. 2004. A framework for supply chain performance measurement: International Journal
market completely. But the company also need to interact with the gas shops. They are the ones who see
the company’s end users every day! It is important for the company to maintain a proper knowledge ofgas °fProduction Economics, 87,3:333-47.
shops’ needs, habits and customer knowledge,” explains Thuong-Duc Cao. The country is divided into
eight different areas, each supervised by a sales manager with a team of sales executives. The sales
executives are not only in charge of meeting with their distributors regularly. They also visit different gas
shops in their area, sometimes alone, sometimes with the local dealer. Promotional material such as
brochures or advertisements can be delivered to the distributors, but also often directly to the gas shops-
126
A 127
“GREEN MARKETING: AWARENESS AND ITS INFLUENCE ON BUYING " Data analysis and interpretation
BEHAVIOR OF CONSUMERS - A STUDY WITH REFERENCE TO DAKSHINa Table 1: Showing Gender of the Respondents
KANNADA DISTRICT” Gender Frequency Percentage
*Mr. Thilak Gowda**Ms. Ashwitha Shetty Male 52 52.0
Assistant Professor, PG Dept, of Commerce, Pompei College Aikala.
Female 48 48.0
Lecturer in Commerce, S.D.P.T College, Kateel.
Total 100 100.0
Introduction N= 100 Source of data: Survey
Green marketing is promoting of environment friendly products and services. It is ending up more well
known as more people become concerned with ecological issues and decide that they need to spend money
in a way that is kinder to the planet. The green development has been growing quickly in the world. With
respect to this consumers are assuming responsibility and doing the right things. Awareness of consumers
■ Male
and inspiration keep on driving change in the market place, notably through the introduction of all the more
■ Female
environment friendly products and services. Green marketing includes various different concepts, such as
making eco- friendly products, utilizing environment friendly packaging, adopting manageable business
practices, or concentrating advertising endeavors on messages that convey a product’s green advantages.
While comparing the Indian consumers with the consumers of developed countries are much less awareness
of global warming issues. Successful marketing concept has always been identifying the trends and Interpretation: In the above Table and graph majority of the respondents are male i.e.52%.
positioning the products and services in way that satisfying the needs of the consumers.
Table 2: Showing the Age of the Respondents
In India Green is the symbolic color of eco-consciousness. The developing customer awareness is about
the reality of products and the concern over approaching worldwide environmental emergency. Today Age Frequency Percentage
Green Marketing has moved from a pattern to a method for a business and organization should recognize 25 years and below. 40 40.0
the value of implementing green concept and incorporating this concept into their marketing project and 24 24.0
26-35 years.
communicating the green concept to the consumers. Today firms have increasingly introduced Green Product 22.0
36-45 years. 22
Innovations (GP1) into their product development.
Above 40 years. 14 14.0
Objectives of the study
Total 100
• To study the consumer awareness on the availability environment friendly products and services.
• To study the consumer beliefs and attitudes on green products. N= 100 Source of data: Survey
• To study the influence of green marketing efforts put by the marketers with reference to consumers.
Study design and methodology ■ 25 years and
below.
The universe of the study is the selected areas of Dakshina Kannada district of Karnataka state. The
sampling size of the respondents is 100. The respondents were randomly selected from the selected areas. ■ 26-35 years.
The study has been conducted using the primary data. To get broad knowledge about the study the survey
method has been adopted. Information has been gathered by interview schedule specially designed for the
■ 3645 years.
purpose. Accordingly, the spot observations and discussions were also used for verifying the information.
The primary data collected on various aspects has been organized in the tabular form Such organized data
has been analyzed with the help of different statistical tools like percentage, average etc for drawing
meaningful conclusion. Along with the primary data, secondary data has been collected from newspapers, are in the age group of 25 and below
books, and internet. Interpretation: In the above Table majority of the respondents
of 26-35(24%). Whereas 22% in the age
(40%). Second largest number of respondents is in the age group ~
group of 36-45(26%) and remaining 14% are in the age group above 40 years.
128 129
Table 3: Showing the Marital Status of the respondents Table 5: Showing Occupation of the respondents
Marital Status Frequency Percentage I Occupation Frequency Percentage
Single 60 60.0 f Self Employed 36 36.0
Married 40 40.0 Professional 30 30.0
Total 100 100.0 Student 22 22.0
Home maker 12 12.0
N= 100 Source of data: Survey
Total 100 100.0
■ Single
■ Mamed
Interpretation: In the above Table majority of the respondents are single i.e. 60% and 40% of respondents
are married.
Table 4: Showing Educational Qualification of the respondents
Educational qualification Frequency Percentage

SSLC and below 34 34.0
Interpretation: Above Table shows that out of total respondent, 36% of them are professionals, 30% of
PUC 20 20.0 them are Self-employed and 22 % of hem
t are students and remaining 12% of hem
t is home maker. Therefore
Degree 20 20.0 it is clear that majority of the respondents are professionals.
Post graduate 18 18.0
Table 6: Showing the geographical area of the respondents.
Diploma 08 08.0
Area Frequency Percentage
Total 100 100.0
Rural 34 34.0
N= 100 Source of data: Survey 16.0
Urban 16
Semi Urban 51 51.0
Total 100 100.0
N- 100 Source of data: Survey
■ Rural
■ Urban
BSemiUrban
Interpretation: In the above Table shows that out of total respondents, majority of respondents are SSLC
and below i.e.34%, 20% and 20% PUC and Degree. 18% of them completed their Post Graduate and
remaining 8% of them have completed their Diploma.
130
A' 131
■
Interpretation: In the above Table 51 % of the respondents belonging to the urban, 34% from rural area Tabic 9. Showing the opinion of the Respondents about green marketing products less damages to
and 16% respondents belonging to semi urban area. the environment.
Table 7: Showing the number of respondents aware of and using green products. Less Damages to the Environment Frequency Percentage
Frequency Percentage Yes 87 87.0
Aware of Green Products
66 66.0 No 13 13.0
Yes
34 34.0
Total 100 100.0
No
Total 100 100.0 N= 100 Source of data: Survey
■ Yes
■ No
Interpretation: Above Table shows that 87% of the respondents opinioned that green products will not
damages the environment and 13% of the respondents opinioned that green products also will damages the
Interpretation: The above Table shows that 66% of the respondents are aware of green products and
environment.
using of them and 34% of the respondents are not using green marketing products.
Table 10: Showing the Respondents opinion about the performance of Green Products over non
Table 8: Showing the through which the respondents Aware about Green marketing. green products.
Awareness Frequency Percentage Frequency Percentage
Performance
Television 46 46.0 Very Good 84 84.0
Newspaper 32 32.0 Good 12 14.0
Friends & relatives 22 22.0 Average 02 02.0
Total 100 100.0 Bad 02 02.0
N= 100 Source of data: Survey Total 100 100.0
N- 100 Source of data: Survey
■ Very Good
■ Good
Average
■ Bad
======5==™
Interpretation: The above Table shows that 46% of the respondents were influenced by television, 32%
of the respondents were influenced by Newspaper and 22% of the respondents were influenced by the
Friends and relatives. Therefore, it is clear that majority of the respondents were influenced by television-
!■“.....................................
/■ 133
HI
Table 11: Showing the opinion about the cost of the green products. Table 13: Showing the Fear Faced by the Respondents While Using Green Product
Price Frequency Percentage Fear Frequency Percentage
Costly 42 42.0 Fear of security 24 24.0
Less Costly 25 25.0 Lack of knowledge 36 36.0
Average 33 33.0 Any other 40 40.0
Total 100 100.0 Total 100 100.0
N= 100 Source of data: Survey N= 100 Source of data: Survey
■ Costly
■ Less Costly
■ Average
Interpretation: Above Table shows that 42% of the respondents opinioned that Green products are Interpretation: Above Table shows that 40% of the respondents fear about any other reason while using
costly. 33° e of the respondents opinioned average cost and 25% of the respondents opinioned less costly. green products, 36% of the respondents fear about lack of knowledge while using green products and 24%
of the respondents are fear of security while using green products. Therefore, it is clear that majority of the
Table 12: Showing the changes in the Buying Behavior after Aware of Green Products respondents fear about any other reason while using green products.
Changes Frequency Percentage
Table 14: Showing Green Products will become the part of the protection of Environment.
Yes 62 62.0
Response Frequency Percentage
No 38 38.0
Strongly agree 16 16.0
Total 100 100.0
58 58.0
Agree
N= 100 Source of data: Survey 14.0
Neutral 14
12 12.0
Disagree
Nil Nil
Strongly disagree
100 100.0
Total
■Yes
■ No N- 100 Source of data: Survey
■ Strongly agree
■ Agree
a Neutral
Interpretation: In the above Table shows that 62% of the respondents had changes in their buying behavior
■ Disagree
after aware of green products and remaining 38% of the respondents had no changes in their buying
■ Strongly disagree
behavior. Therefore, it is clear that majority of the respondents had changes in their buying behavior after
knowing about green products.
135
134
Interpretation: Above Table shows that 58% of the respondents are agree, 16% of the respondents are . The study shows that the majority of the respondents opinioned that the performance of the green
Strongly agree 14% and 12% of the respondents Neutral and disagree regarding Green products will products are very good over non green products.
become the part of protection of environment. Therefore, it is clear that majority of the respondents agree
that Green Products will helps to protect our natural environment. ' U reve3ls th3t the majority of the respondents opinioned that green products are less costly.
. The study reveals that the majority of the respondents say that there is change in buying behavior
Table 15: Showing the purpose using Green Products more. after knowing about green products in the market.
Purpose Frequency Percentage • The study shows that the majority of the respondents are using green products because they are
Environment Friendly 74 74.0
environment friendly.
Easily Available 04 04.0 • It shows that majority of the respondents agrees that the green marketing concept will become the
part of environment protection in future.
Less costly 10 10.0
Suggestions
Any other 12 12.0
Total 100
• There should be an establishment of some more institutions to create awareness of green marketing
100.0
and green products among the marketers and consumers.
N= 100 Source of data: Survey 8 The companies should give best vender award to taking initiation for implementation of green
marketing practices.
® The government should spend more amounts on research and development for innovating environment
friendly technologies.
® The government should provide subsidies to them who are practicing green marketing concept.
• There should be a close relationship between green marketing practices and green marketing
performance.
® There is need ofsupervision of price of the green products so that company gives value for money
by providing quality products.
Interpretation: Above Table Shows that 74% of the respondents are using green products for the purpose
because of it is environment friendly and 12 % of the respondents are using green products for the purpose • There should be a provision for providing information to the green consumers that the green products
their personal reason, 10% of the respondents are using green products for the purpose of available at less will not only having environment benefit but personal too.
cost and remaining 4% of the respondents are using green products for the purpose that it is easily available. • The companies should carry the green philosophy by using recycled containers and packaging.
Therefore, it is clear that majority of the respondents are using green products for the purpose that it is • The companies should take responsibility to educate customers on both the money saving and
environment friendly. green aspects of green products.
Findings • The companies should try to prove that the green products and services are actually environment
• The study reveals that majority of the respondents are male. friendly.
• It is clear that majority of the respondents belonging to 25 years and below age group. Conclusion
• Majority of the respondents are unmarried. Marketing is a very wide term a vast concept to understand. Green marketing is part of the marketing which
is very important from social, economical and ethical point of view as it has motive of spreadmg awareness
• It shows that the majority educational qualification of the respondents is SSLC. among the people about environmental issues. This is helping to maintain the environment clean and green
• The majority of the respondents are self employed.
by producing eco-friendly products.
• It is clear that majority of the respondents from semi urban area.
This study shows the existence of gap between an environment value and action value The gap is between
• The study reveals that majority of the respondents are aware of the concept of green marketing and Ute consumer’s behavior and being green. This paper has presented vanous aspects of consumer behav, or
green products.
and shown that preference of consumer for green products could be influenced by market,ng. Over all ,t ,s
• The study shows that the majority of the respondents are aware of green products through television. clear that all the companies should go for green marketing concept to protect the natural environment. The
• It shows that majority of the respondents says that the green products will not damages the natural study suggests there is greater use of marketing brands to sell green products which are eco-friendly.
environment.
II136 137
References
A DESCRIPTIVE STUDY ON GREEN MARKETING: OPPORTUNITIES AND
1. Kama, J., Hansen, E. & Juslin, H. (2003). Social Responsibility in Environmental Marketing Planning.
CHALLENGES
European Journal of Marketing, 37(5/6), pp. 848-873 *Ms. Kavyashree. K** Ms. Deekshitha Kumari
2. Sanjay K. Jain & Gurmeet kaur (2004), Green Marketing: An Altitudinal and Behavioural Analysis of Assistant professor,SDM College, Ujire.
. Indian Consumers, Global Business Review, Vol.5 no. 2 187-205.
3. Alsmadi, S. (2007), -Green Marketing and the Concern over the Environment: Measuring Introduction
Environmental Consciousness, Journal of Promotion Management, Vol. 13(3-4), 2007. According to the American Marketing Association, green marketing is the marketing of products that are
4. Davari, A.A. and Strutt, D. (2014). Marketing Mix Strategies for Closing the Gap between Green presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including
Consumers’ Pro environmental Beliefs and Behaviors, Journal of Strategic Marketing (online), 22(7), product modification, changes to the production process, packaging changes, as well as modifying advertising.
Yet defining green marketing is not a simple task where several meanings intersect and contradict each other;
pp. 563-586.
an example of this will be the existence of varying social, environmental and retail definitions attached to this
5. Sharma, P. (2015). Green Marketing - Exploratory Research on Consumers in Udaipur City. Journal term. Other similar terms used are Environmental Marketing and Ecological Marketing. Thus “Green Marketing”
of Applied Research (online), 5(1), pp. 254-257, refers to holistic marketing concept where in the production, marketing and disposal of products and services
6. Davis, G. (2014). Why product packing influences consumer buying behavior. happen in a manner that is less detrimental to the environment with growing awareness about the implications
of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and
consumers are becoming increasingly sensitive to the need for switch in to green products and services.
While the shift to “green” may appear to be expensive in the short term, it will definitely prove to be
indispensable and advantageous, cost-wise too, in the long run. Green marketing, also alternatively known as
environmental marketing and sustainable marketing, refers to an organization’s efforts at designing, promoting,
pricing and distributing products that will not harm the environment
Objectives of the study:
1) To understand the concept of green marketing
2) To identify the significance of green marketing
3) To identify the opportunities and challenges of green marketing
Research methodology:
This paper is based on secondary data. The information is based on various journals, research articles and
websites.
Review of literature:
Prothero, A. (1998) introduced several papers discussed in the July 1998 issue of ‘Journal of Marketing
Management’ focusing on green marketing. This included a citation of the need to review existing literature
on green marketing, an empirical study of United States and Australian marketing managers, a description
ofwhat a green alliance look like in practice in Great Britain, ecotourism and definitions of green marketing.
Prothero, A. & Fitchett, J.A. (2000) argued that greater ecological enlightenment can be secured through
capitalism by using the characteristics of commodity culture to further progress environmental goals.
Marketing not only has the potential to contribute to the establishment of more sustainable forms of society
but, as a principle agent in the operation and proliferation of commodity discourse, also has a considerable
responsibility to do so.
Oyewole, P. (2001) in his paper presented a conceptual link among green marketing, environmental justice,
and industrial ecology. It argues for greater awareness of environmental justice in the practice for green
marketing. A research agenda is finally suggested to determine consumer’s awareness of environmental
justice, and their willingness to bear the costs associated with it.
138 139
i
Alsmadi (2007) while investigating the environmental behaviour of Jordanian consumers reveals a high 4. Recommending use of leaves instead of plastic pieces; jute and cloth bags instead of plastic carrying
level of environmental conscience. Unfortunately however this positive tendency and preference in the
“green” products did not appear to have any effect on the final decision, obviously because these consumers 5. Increasing use of bio-fertilizers (made of agro-wastes and'wormy-composed) instead of chemical
had a stronger faith in the traditional products and a small confidence in the green statements. The above fertilizers (i.e. organic farming), and minimum use ofpesticides.
obstacles were further strengthened by the lack of environmental conscience by a lot of enteiprises and the 6. Worldwide efforts to recycle wastes of consumer and industrial products.
existence of a large scale of prices for the same product, many of which included an impetuous estimate of 7. Increased use of herbal medicines, natural therapy, and Yoga.
environmental responsibility. The same phenomenon has been presented in other researches too. 8. Strict provisions to protect forests, flora and fau’na, protection of the rivers, lakes and seas from
pollutions.
Evolution of green marketing
9. Global restrictions on production and use of harmful weapons, atomic tests, etc. Various organisations
Green marketing term was first discussed in a seminar on Ecological Marketing organized by American
of several countries have formulated provisions for protecting ecological balance.
Marketing Association (AM A) in 1975 and took its place in the literature. The term green marketing came
10. More emphasis on social and environmental accountability ofprodu cers.
into prominence in the late 1980s and early 1990s. The first wave of green marketing occurred in the
11. Imposing strict norms for pollution control. Consideration of pollution control efforts and eco-tcchnology
1980s. The tangible milestone for the first wave of green marketing came in the form of published books,
in awarding IS), ISO 9000, or ISO 14000 certificates and other awards.
both of which were called Green Marketing. They were by Ken Pattie (1992) in the United Kingdom and
12. Declaration of 5,h June as the World Environment Day.
by Jacquelyn Ottman (1993) in the United States ofAmerica. According to Peattie (2001), the evolution of
13. Strict legal provisions for restricting duplication or adulteration.
green marketing has three phases.
14. Establishing several national and international agencies to monitor efforts and activities of business
First phase was termed as “Ecological” green marketing, and during this period all marketing activities firms in relation pollution control and production of eco-friendly products.
were concerned to help environmental problems and provide remedies for environmental problems.
Opportunities and challenges of green marketing
Second phase was “Environmental” green marketing and the focus shifted on clean technology that involved Challenges in Green Marketing
designing of innovative new products, which take care of pollution and waste issues. 1) Need for standardization: It is found that only 5% of the marketing messages from Green campaigns
are entirely true and there is a lack of standardization to authenticate these claims. There is no
Third phase was “Sustainable” green marketing. It came into prominence in the late 1990s and early standardization currently in place to certify a product as organic. Unless some regulatory bodies are
2000concemed with developing good quality products which can meet consumers need by focusing on the involved in providing the certifications there will not be any verifiable means. A standard quality
quality, performance, pricing and convenience in an environment friendly way. control board needs to be in place for such labeling and licensing.
Characteristics of green marketing: 2) New concept: Indian literate and urban consumer is getting more aware about the merits of green
1. Products are originally grown products. But it is still a new concept for the masses. The consumer needs to be educated and made
2. Products are recyclable, reusable and biodegradable aware of the environmental threats. The new green movements needs to reach the masses and that will
3. Products with natural ingredients take a lot of time and effort. By India’s ayurvedic heritage, Indian consumers do appreciate the importance
4. Products contain recycled contents and non toxic chemicals of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles
5. Products that do not harm or pollute the environment. such as yoga and natural food consumption. In those aspects the consumer is already aware and will be
6. Products that will not be tested on animals. inclined to accept the green products.
7. Products that are ecofriendly packed i.e. reusable containers etc. 3) Patience and Perseverance: The investors and corporate need to view the environment as a major
longterm investment opportunity, the marketers need to look at the long-term benefits from th.s new
Significance of green marketing green movement. It will require a lot of patience and no immediate results. Since it ts a new concept
Green marketing affects positively the health of people and the ecological environment. People are aware and idea, it will have its own acceptance period.
ofpure products and pure methods of producing, using, and disposing the products. It encourages integrated
efforts for purity in production and consumption as well.
l)P'opportulniSti'esfAs™emand changes, many firms see these changes as an opportunity to exploit and have
We can witness following impacts of green marketing: a competitive advantage over firms marketing „on-environme„.ally responstble altemafives. Some
1. Now, people are insisting pure products - edible items, fruits, and vegetables based on organic farming- r environmentally responsible in an attempt to
examples of firms who have strived to become more
The number of people seeking vegetarian food is on rise.
better satisfy their consumer needs
2. Reducing use of plastics and plastic-based products. 2) Government Pressure: As with all marketing related activities, governments want to protect consumer
3. Increased consumption of herbal products instead of processed products.
141
140
and society; this protection has significant green marketing implications. Government regulation relating INFLUENCE OF MALL CULTURE ON CONSUMER BEHAVIOUR AND
to environmental marketing are designed to protect consumers in several ways, Reduce production of BUYING DECISIONS
harmful goods or by-products modify consumer and industry’s use and consumption of harmful goods A STUDY WITH SPECIAL REFERENCE TO MANGALORE CITY
.Ensure that all types of consumers have the ability to evaluate the environmental composition of *Yathish Kumar **Niveditha
goods. Governments establish regulations designed to control the amount of hazardous wastes produced *Associate professor, University College, Mangalore
by firms. New Delhi, the India’s capital was getting polluted gradually at a very fast pace till Supreme **(Research Scholar, Mangalore University), Assistant professor, Aloysius College
Court of India forced a change of fuel on it. In 2002, a directive was issued to completely adopt CNG
in all public transport systems to curb pollution. Introduction:
Retail sector in India witnessing a huge change as traditional markets make way for new formats such as
Conclusion:
departmental stores, hypermarkets, supermarkets and speciality stores. This is due to the rapid urbanisation,
Green marketing is a tool for protecting the environment for future generation. It is not going to be an easy
increased household income, a growing exposure to foreign lifestyles, increased aspiration of consumers
concept. The firm has to plan and then carry out research to find out how feasible it is going to be. Green
and the convenience of one-stop shopping. The mind set of Indian buyers has been changing in recent
marketing has to evolve since it is still at its infancy stage. Adoption of Green marketing may not be easy in
years. Buyers visits the shops not only to purchase the product but also to experience the enjoyment,
the short run, but in the long run it will definitely have a positive impact on the firm. Green Marketing is
personal administration and also because of shopping atmosphere. All these factors have created the
still in the stage of childhood in the Indian companies. Lots of opportunities are available. Now this is the
development of shopping centres where shopping, entertainment and good shopping experience along with
right time to select Green Marketing globally. It will come with drastic change in the world of business if
the multiple shops are available under one roof. Thus, malls serve the purpose of giving quality time and
all nations will make strict rules because green marketing is essential to save world from pollution. From
place for entertainment, socialization, pleasure and fun besides selling required products and services.
the business point of view because a clever marketer is one who not only convinces the consumer, but also
The mall was originally conceived of as a community centre where people would converge for shopping,
involves the consumer in marketing his product. Green marketing should not be considered as just one
cultural activity, and social interaction (Gruen& Smith, 1960)and one can easily say that malls have
more approach to marketing, but has to be pursued with much greater vigor, as it has an environmental and
succeeded in achieving the age-old purpose of bringing them into existence. Thus, in today’s consumer
social dimension to it. With the threat of global warming looming large, it is extremely important that green
culture “Mall” is the centre of the Universe (Feinberg &Meoli, 1991).
marketing becomes the norm rather than an exception or just a fad. Recycling of paper, metals, plastics,
etc., in a safe and environmentally harmless manner should become much more systematized and universal. Literature review:
It has to become the general norm to use energy efficient lamps and other electrical goods. Indian market Ahmed and Mayya (2015) conducted a study to examine and analyse the buying behaviour and the perceptions
Customers too are ready to pay premium price for green products. One thing that is being reiterated is that of the customers of shopping malls. Results of their study indicate that consumers have gained lot of
the current consumption levels are too high and are unsustainable. Therefore there is a need for green benefits from organized retail on multiple counts like wider choice of products and well-known brands,
marketing and a need for a shift in the consumer's behavior and attitude towards more environment friendly one stop shopping, new market arrivals, festive offers, huge discounts, and other benefits. The survey
life styles. Ultimately green marketing requires that consumers want a cleaner environment and are willing results revealed that almost all income groups get benefited through organized retail purchases. Thus, from
to pay for it, possibly through higher priced goods, modified individual lifestyles, or even governmental the consumers’ perspective, expansion of organized retailing is more preferred as different malls and
intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. An corporate retailers compete with each other resulting in reduced prices with reasonable quality products.
environmental committed organization may not only produce goods that have reduced their detrimental Sachin and Shetty had undertaken a study to examine the influence of mall culture on consumer behaviour
impact on the environment, they may also be able to pressure their suppliers to behave in a more and buying decisions. The paper also tries to explore the psychological influence of mall culture on
environmentally responsible fashion. Final consumers and industrial buyers also have the ability to pressure
consumer behaviour Their study reveals that the consumerism associated with high strategic promotion
organizations to integrate the environment into their corporate culture and thus ensure all organizations attracts the people towards mall culture. Modem world accepted mall as a culture as it is witnessing a
minimize the detrimental environmental impact of their activities.
new trend in purchasing behaviour among the people. Buying behaviour and purchase decision making
Reference process are closely connected to the ambience of shopping malls.
1. J.A Ottman, et al, “Avoiding Green Marketing Myopia”,Environment, Vol-48, June-2006 Narahari&Kuvad (2017) examined customer behaviour towards shopping mails. The main objective of
2. www.greenmarketing.net/stratergic.html ■heir study is to understand the purchasing behaviour of customers who vts.t shopptng malls and tden.tfy
3. www.epa.qld.gov.au/sustainable_ industries
4. www.greenpeace.org/intemational ‘r
»
-- * T for Wide range of products and btand, However, regard,ng the
5. http://www.iocl.com/AboutUs/environment%28GFA%29.aspx
safety measure, there is huge dearth ofawareness among customers. Overall, the study finds that th
II 143
no predominant differences between men and women in their shopping experiences, choices and^purchasing Scope of the study
r,;:rb—
with family, dine out other than shopping.
TT EtothMaU c°I!,fred l° ‘hC maj°r ma"S of ManSalore- The major four malls arc selected lor the
sludy. Bhamth Mall, City Centre Mall, ForumFiza Mall and Empire Mall
Research methodology
Rashmi, Poojary and Decpak(2016) analyse the factors influencing customer behaviour and its impact on The study is descriptive nature. A sum total of 100 customers and regular visitors of mall weretaken as the
loyalty towards shopping malls. The purpose of this paper is to sludy customer behaviour towards shopping samp c or e s u y. e study is based on primary and secondary data. Primary data is obtained from
malls with six important dimensions using structural equation modelling.The sludy concluded that the structured questionnaire and interview with the mall visitors. To make the study more accurate, data was
shoppers’ shopping behaviour is having a positive impact on shoppers’ satisfaction and loyalty. This collected from the secondary source such as text books, newspapers, journals, magazines.
implies that improving the factors that affect shoppers’ shopping behaviour, will lead to increase in shoppers’ Limitations of the study
satisfaction and loyalty towards the retail shops in selected shopping malls.
• The study is limited to the consumer behaviour and the purchasing decision of the selected sample
White (2008) in his paper expressed that the customer and their lifestyles have changed, and with that, respondents, and may not be universally applicable.
shopping centres are changing to continue to attract consumers. Entertainment centres, entertainment and ® The study is micro’ in nature, and its survey findings and observations cannot be generalized and
destination venues, once of little significance to shopping centres and malls, are now growing in importance may subject to change from time to time and place to place.
as an essential part of the mix, in order to attract today’s consumer, goods alone don’t work. • As sample size is 100 it is not necessary that it truly represents the population universe.
Sannapu, andSingh (2012) in their study analysed the relationships among the constructs of mall positioning, Data analysis and interpretation
shopper satisfaction and patronage behaviour of mall shoppers. The studyrevealed that the positioning Table 1: Age of the Respondents:
dimensions influence shopper satisfaction. Shopper satisfaction in turn influences patronage behaviour of Particulars No. of Respondents Response in Percentage
the shoppers. The study has established causality among the constructs of positioning, shopper satisfaction
and patronage behaviour. 0-15 21 21
16-30 47 47
Lorch and Smith (1993) in their study concluded that customers coming from a parking lot walk straight 19 19
31-45
forward to the nearest shopping mall entrance and only those shops which are immediately adjacent to this
entrance benefit from it. 45& above 13 13
Interpretation:From the above table it is clear that, 47% of the respondents belong to the age group of
Yaaminidevi (2013) in her study analysed Facility Management like ambience, infrastructure and traffic
below 16-30, 21% of sample respondents belong to the age group of below 15, 19% of the respondents
were analyzed particularly. She suggested that malls not only cater to the product needs of the customers,
but also a source of entertainment, recreation. belong to the age group of 31 -45 and remaining 13% of respondents belongs to 45 and above. This shows
that maximum young age people visits mall frequently.
Theoretical framework:
Culture: Culture is the characteristics and knowledge of a particular group ofpeople, encompassing language, Table 2: Annual Income ofthe Respondents:
religion, social habits, music and arts. (Kim Ann Zimmermann, 2017) No. of Respondents Response in Percentage
Particulars
24 24
Less than 300000
«h^buAsiteTs esBbUstaentl"8' e"Cl0Sed Sh°PPin8 “"“"S ^ of sh°ps. restauran,s a"“ 38
300000-500000 38
26 26
500000 -700000
Consumer buying behaviour: Buying behaviour is the decision process and acts of people involved in 12
7000000 & above 12
buying and using the products. Consumer behaviour refers to buying behaviour of ultimate consumer.
Objectives:
The main objective of the study is to analyse the influence of mall cultur group of less than 3 lakh, 38 P 12% of respondents belongs to 7 lakh and above. We can
buying decisions. The other objectives are: e on consumer behaviour and
• To study the buying behaviour of the customers of shopping malls
. To analyse the impact of mall environment on consumer buying decision.
II144....................... 145
El
Table 3: Frequency of Visiting Shopping Mall: mallT increase tZ locialZte I'nd reaZ^/Tf th'^ “T*"'! agreed ,hatbuyi"8 in sh°Pping
No. of Respondent^ Response in Percentage
Particulars not believe so. It shows that
raajcrityof. he respondents Purchasing for ZpurpL efLZ";"
Daily 5 5 social status.
52 52 Table 7: Reasons for Purchasing:
Weekly
24 24 Particulars No. of respondents
Monthly Response in percentage
15 15 Ideal Location 16
Fortnightly 16
4 4 Multiple shops 23
Yearly 23
Interpretation: From the table it is clear that, 5% of the sample respondents visit malls daily, 52% of the Multiple brands 28 28
respondents visit weekly, 24% of the respondents visits Monthly, 15 % of the respondents visits fortnightly Affordable prices
and remaining 4% of the respondents visits malls once in a year. It shows that majority of the respondents Promotional offers 22 22
visit malls weekly.
Interpretation: From the above table it is clear that, 28% of the respondent have purchasing from shopping
Table 4: Motive behind visiting shopping malls: mall for the purpose of availability of multiple brands, 16% if the respondents have chosen ideal location
Particulars No. of respondents Response in percentage of the mall, 23% of the respondents have attracted from availability of multiple brands, 11% of the
Shopping 48 48 respondents visiting shopping malls for affordable prices and remaining 22% of the respondents gets
attract from their promotional offers. It shows that majority of respondents prefer availability of multiple
Entertainment 23 23
brands at one place.
Food 16 16
Games 4 4 Table 8: Language as a Status Sign:
Leisure Particulars No. of respondents Response in percentage

9 9
Yes 78 78
Interpretation: From the above table it is clear that 48% of the respondents visits shopping mall for the
No 22 22
purpose of shopping, 23% of the sample respondents visits for the entertainment purpose, 16% of the
respondents visits shopping mall to have variety of food, 4% of the respondents visits for playing ga mes Interpretation: From the above table it is clear that, 78% of the respondents agreed that language is one of
and remaining 9% of the respondents visits shopping mall to spend their leisure time. It shows that majority the status sign at shopping malls and reaming 22% of the respondents do not believe so. It is clear that
of the respondent’s visits shopping mall for the purpose of shopping. language is one of the major status sing in malls.
Table 5: Preferred Dressing Style:
Table 9: Usage ofMother Tongue:_________________ _______ _________________
Particulars No. of respondents No. of respondents Response in percentage
Response in percentage Particulars
Western 45 45 37 67
Yes
Casual 38 38 63 73
No
Traditional 17 17 Interpretation: From the above table i. is clear that, 63% of the respondent are not comfortable in usage of
Interpretation: From the above table 1, is clear that, while visiting shopping malls 45% of the sample their mother tongue while communicating in shopping mall and teaming 37% of the respondent are
respondents prefer western dressing style, 38% of he
t respondents prefer casual dressin It is clear that majority of the respondents do not prefer mother tongue at shopping malls.
g style and remaining comfortable.
17% of the respondents prefer Traditional dressing style. It is clear that
most of respondents prefer western Table 10: Malls Contribution to Westernization:
dressing style while visiting malls.
No. of respondents Response in percentage
Table 6: Increasing Social Status: Particulars
46 46
Particulars Ofcourse
No. of respondents 39
Response in percentage 39
Yes 85 Somewhat
85 15
No Not Really 15
15 15
146 147
Redefining Strategies For International Markets Redefining Strategies For International Markets 11
Interpretation: From the above table it is clear that, 46% of the responds agreed that malls have contributed Many people hesitate to visit malls because of its high price products. Retailers can attract these consumers
to a trend of westernisation, 39% of the respondents somewhat agreed and reaming 15% of the respondents by pricing strategy. The retailers can also use many promotional strategics to attract the consumers.
do not agree. It is clear from the study that malls are major contributor towards the westernization. Conclusion
Table 11: Mall Culture Promoting Factors: Modern world is more
attracted towards shopping malls as these organised shopping provide many
No. of respondents Response in percentage advantages. The malls culture is increasingly influencing shopping behaviour and pattern of consumers.
Particulars
15 15 The retailers should give more attentions to these changes in order to survive in the market.
Cleanliness
Variety of Stores 34 34 Bibliography
Variety of Events 21 21 • Ajzen, I. (1991). The theory of planned behavior. Organizational
Behavior and Human Decision
24 Processes, 50, 179-211.
Availability of Parking 24
Safety 16 16 • B.H, R., Poojary, S., & M.R, D. (2016, July). Factors Influencing Customer behaviour andits impact
on Loyalty towards Shopping Malls of Bangalore City. IJEMR. 6(7), 1-14.
Interpretation: From the above table it is clear that, 15% of the respondents agreed that cleanliness is the
promoting factor in mall culture, 34% of the respondents agreed its variety of stores, 21 % of the respondents • Charles Dennis (2005) Modelling the Effects of Mall Atmospherics on Shoppers’Approach
agreed that its variety of events, 24% of the respondents agreed its availability of parking and reaming Behaviors. Brunei Business School Working Paper Series: Special Issue on Marketing, Vol. 2,2005.
CANquantsAN v21 19 Oct 05
16% ofthe respondents agreed its safely factor. It shows that majority ofthe respondents gets attract from
variety of stores. • Epstein, S. (1973). The self-concept revisited. American Psychologist, 28,404-416
• Leo, C., Bennett, R., &Hartel, C.E.J. (2005). Cross-cultural differences in consumer decisionmaking
Findings:
styles. Cross Cultural Management, 12(3), 32-63.
• The study shows that majority of the respondents belongs to the age group of 16-31. It means malls
• Mansi Batra Patney, 2010). Indian consumers and their mall patronage: Application of cultural self
attract more young people. The study also shows that the respondents belong to the income group of
and the theory of planned behavior to patronage intentions, Graduate Theses and Dissertations.
300000-700000.
Paper 11749. Retrieved from http://lib.dr.iastate.edu/etd
• The study shows that majority respondents prefer to visit malls weekly and monthly. Weekend and
• Stephen Reicher, (2014). The Psychology of Crowd Dynamics, School of Psychology University of
monthly income is the reason for weekly and monthly visit.
St. Andrews.
• The study shows that shopping and entertainment is a primary motive of visiting malls.
• S, S., & Shetty, P. (n.d.). Influence of Mall Culture on Consumer Behavior and Buying Decisions.
• The study shows that majority of respondents attracted from variety of shops. They think that they
can get everything under one roof.
• The study shows that the multiple brands and shops attract the respondents towards malls.
• The study shows that language is the indicator of social status in malls. Majority of the respondents
think ifthey use English language it will increase their social status and respondents prefer English
compare to their mother tongue.
• The study shows that malls are major contributor towards the westernization. Malls became one of
the reasons to spread western culture.
• The study shows that shopping in malls is considered as a symbol of social status.
• The study shows that the majority of the respondents prefer to wear western and casual wear. They
think it is comfortable to wear these dresses while shopping and also it is a matter of esteem.
Suggestions
Mangalore is mixture of many culture and languages. As malls are attracting more consumers nowadays, it
became a mode of cultural transformation. Malls management can conduct many events to attract the
people by cultural shows which help to promote local culture. They r
conduct weekly and monthly
cultural events so that they can attract ct many people as they prefer to visit
— weekly and monthly basis.
148 4 149
BRAND LOYALTY-TRUTH BUILDS TRUST only two etail brands Westside and Pantaloons in Ahmcdabad city and accepted the hypothesis that men
*Geetha Prabhu
aDreJCa y. t0 °ther brandS 'f the same facilities are available. S, Mjalakshmi M and
Lecturer, Commerce department Bhandarkars’Arts & Science College, Vadcr Hobli Post R.Magesh (JU15) In Store Decisions of men in a Leading Apparel Showroom”, find out the process of in
store s ons o men shoppers in a leading apparel showroom. They found that male shoppers and
female s oppers varied in their attitude towards in store promotional activities. This study focused only on
Maii^developments and changes are taking place around us with all the industries and firms within each one apparel retail outlet namely Classic Polo Showroom in Coimbatore. C.VKrishna, Manjusmita
Dash,(2014) “Consumer preferences towards “ Brands in Indian Apparel Retail - A Pilot Study”, To
industry including garment industry with an intention to keep pace with the changes and diverse needs of
study the consumer preferences towards private apparel brands they Used random sampling method. The
the people. Though for decades together, marketers have regarded consumer as the king and evolved all
results of the study showed that price has the most influence on overall preference as compared to other
activities to satisfy him, this concept is gaining more momentum and importance today. This can largely be
parameters such as quality, design and availability. Amine (2010) in her literature distinguishes two main
attributed to the prevailing market situation. Not only competition has become intense but over and above
approaches to define the loyalty of a brand in men apparels. He concluded that the repeat purchasing of a
with the market being flooded with many products. The challenge before the marketers is to understand the
brand over time by a consumer expresses their loyalty, and the attitudinal perspective which assumes that
diversity of consumer behaviour and offer goods and services accordingly. The need to understand
consistent buying of a brand is a necessary but not sufficient condition of‘true’ brand loyalty and it must be
the emerging markets and consumers has become a big challenge for the corporate
complemented with a positive attitude towards this brand. CAnandan, M Prasanna Mohan Raj <6 Mr S
world especially in creating and managing a powerful brand. A decision to buy a product is taken after
Madhu (2016) analysed in their study why men prefer a particular brand and the factors influencing their
passing through different stages. Need recognition is the first stage which is followed by product awareness, purchase. The study tried to find out which brand is the market leader in apparels and the behavioral
interest, evaluation, quality conscious, intention etc. So markets for brands are increasing at a faster pace. pattern of the customers towards a particular brand, their satisfaction levels and reasons for dissatisfaction.
Brand management holds the key in the modem markets, particularly in Indian markets because Indians are
very traditional. India’s traditional dress for men is Dhoti but gradually, people transmitted into tailor Brand loyalty: (AMA) definition of a brand is “a name, term, sign, symbol, or design, or a combination of
made dresses. Due to the globalization process, Indians are getting attracted to readymade dresses, them, intended to identify the goods and services of one seller or group of sellers and to differentiate them
particularly Multinational brands. The growth of readymade mens’ wear business in India was very slow from those of competitors”. Brand loyalty is a consumer’s preference to buy a particular brand in a product
till the early - 1980’s. The main reason for this was that Indian men were used to buying cloth and getting category. It occurs because consumers perceive that the brand offers the right product features, images or
their outfits tailored - mainly through local tailoring shops from the unorganized segment. Consequently, level of quality at the right price. This perception becomes the foundation for a new buying habit. Consumers
there were no national level brands in this category for a long period. By the mid - 1980’s however initially will make a trial purchase of the brand and, after satisfaction, tend to form habits and continue
customer mindset seemed to have started changing gradually, along with increasing urbanization, and purchasing the same brand because theproduct is safe and familiar. Aaker and Keller, 2013 believe that
changes in the social and economic status and life styles. As in many other industries in the nation, the loyalty is closely associated with various factors, one of the main ones being the experience of use followed
move towards branding soon took momentum in the men’s’ wear market. Both listed and unlisted players by price, brand name, style etc. Customers may be loyal owing to high switching barriers related to
cater to the branded apparel market. Toady men’s branded apparels hold 29% total apparel share in the technical, economical or psychological factors, which make it costly or difficult for the customer to change.
world. Aaker (2012, p. 39) defines brand loyalty as the attachment that a customer has to a brand.
Literature review Need for the Study:

La/ilha et aL, (2013) made a study entitled “Brand Preference of Men’s wear". Scope of the study focuses Today the company image is built and made known by its customers. The success of the firm will be
on the brand preference regarding shirts and pants of select consumers living in twin ci,ies „f Hyderabad determined by how effective it has been in meeting the diverse consumer needs and wants by treating each
and Secunderabad. The objectives of this study were to know the reason why men prefer branded shirts customer as unique and offering products and services to suit his needs and creating a life time value and
relationship with him. Marketers have come to realize that their effectiveness in meeting consumer needs
directly influences their profitability. The better they understand the factors underlying consumer behavior
they are better able to develop effective marketing strategies to meet consumer needs. These general
concerns alone are enough to justify our study. However, many seek to understand the behaviour of consumers
intention to explore the purchase behavior of the buyers of branded men’s’ wear Tbdav’!v ’" ^mers
are inclined more towards leading a comfortable and hassle-free life ‘RranHc’ y0Un8 consum t the totality of consumers
they prefer the same as they are conscious of the fact that branded products give them 5^
Menton (2014) in his research “Garment Lifestyle Retailing Stores To trace th ■ ^ S
retailing dealing in garments”, used simple random sampling techniquel'rhls workônsUerTd
ii 150 A
151
m
k Redefining Strategies For International Markets Redefining Strategies For International Markets
Shoppers in Kundapur town in purchasing their brands. Hence from this study it would be helpful for the
Limitations:
garment industry to identify the various factors that lie behind their purchases. This study would prove The study was confined only to few men only in Kundapur .The findings could have been more convincing
extremely helpful for researchers and marketers because it enables them to understand as to what attributes ifa larger sample size had been takcn.Thcse findings may be quite different at some other time or in other
prefer in brands and also to devise effective marketing strategies based on men’s unique brand socio-cultural settings. The present study is confined only too few important questions. More factors/
men
preferences. This study also will give marketers an idea as to the amount of money spent on apparels variables can also be included in the questionnaire. 17 questionnaires were rejected as there was no
annually on an average by males of different age groups, qualifications and occupations. This information satisfactory response from respondents and they knew very less about branded apparels.
will help them strategize their marketing efforts for the future. Brand experience leads to brand loyalty Research methodology:
because customers will always maintain loyalty with the brand with which they have an emotional connection This study is based on primary data as the sample data was collected from 83 men who were engaged in
Creating exceptional brand experience will serve as a great source ofcompetitive advantage for apparel various occupations with different age groups, incomes, marital status and used different brands, The
firms and marketers. respondents were interviewed by using questionnaire at their homes/offices. Secondary data was also
used from various websites and google.
Statement of the Problem:
India has witnessed a frantic pace of brand apparel development over the past five years. Goldman Sachs Data analysis:
has estimated that the Indian economic growth could actually exceed that of China by 2015. It is believed A majority of27.70% of the respondents belonged to the age group of21-30 years. 63.85% of the respondents
that the country has potential to deliver the faster growth over the next 50 years. There is increased were married. A majority 40.96% had an yearly income of less than 50000/-, but still a majority 53% of
sophistication in the shopping pattern of customers, which has resulted in the emergence of big retail the respondents spent nearly 10000/- on branded apparels and 14.45% of respondents spent more than
chains in most metros; mini metros and towns being the next target. Customer taste and preferences are 30000/-. With regard to frequency of purchase 36.14% of the respondents purchase their brands once in3
changing, leading to radical transformation in life style and spending patterns, which in turn is giving rise months. Respondents belonged to various areas like bank employees, businessmen, teachers, lawyers,
to new business opportunities. The generic growth is likely to be driven by changing life styles and by doctors, and government employees.
strong surge in income, which in turn will be supported by favorable demographic patterns. It is essential SLno Variables Numbers %
for marketers to understand consumers for their own survival and success in competitive marketing 2. Amount spent on these brands (yearly)
environments. It is not enough ifconsumer merely purchases branded products. Equally important is the 30 36.14%
Less than 10,000/-
brand loyalty. But for such studies it would be difficult to ascertain the exact needs of consumers. The
10001 to 20000 15 18.07%
consumer has also to take decision about when and where to buy the products that he needs or wants, how
20001 to30000 20 24.09%
much the consumer wants to spend on it, or how much the consumer can afford to and how the consumer
will pay for it. Some purchase decisions are routines and may not require these considerations. Other 30001 to 40000 8 9.63%
purchase situations may be more complex. In other cases considerations regarding status and prestige are Above 40000 10 12.04%
also important. Many product purchases may require the evaluation of a variety of economic, social, and 3. Frequency of purchasing
psychological factors. To solve the problems of consumers and marketers, there must be continuous studies 13 15.66%
Once in a month
in the field of consumer buying behaviors. Few researches have been done in India on the impact of 39 46.98%
Once in 3 mths
consumer behavior and loyalty of men apparels. Whereas more researches are conducted on women apparels, 25 30.12%
Once in 6 mths
consumer durables etc. Although several papers have been published in this area, they are predominantly 7.22%
6
from a practitioner’s point of view. From an academic perspective research publications seem to be Once in a year
limited to some general definitions and briefexplanations. They have not been highlighted in any of previous 4. Purchase occasion
8 9.63%
researches. So loyalty of branded men apparels has been selected for this research. It also satisfies my Festive
personal interest and motivation to investigate brand loyalty of men apparels in a small town like Kundapur. 15 18.07%
Discounts
12 14.45%
Objectives: Offers
10 12.04%
1. To analyze the need to study brand loyalty of men Seasons
apparels among men in Kundapur city’ 10.84%
9
2. To analyze the reasons to choose a particular brand and stick to it Special
20 24.09%
3. To offer suggestions on the basis offindings. Anytime
153
International Markets 1
Redefining Strategies For Redefining Strategies For International Markets
How long you have been using this brand 4.
Though the customers prefer branded cloths still they are price conscious.
21 25.30%
2-5 5 loyaltyêhaviour1^ ^ ^ ** S'milar t0 other diffcrent studies conducted in this brand
19 22.89%
6-10
30 36.14%
10-15 6‘ and^heêwm^mosUnformation so °f'respondenls 8* information from friends and relatives
13 15.66%
Above 15 mass media
Factors considered while baying brands (multiple answers) 7. In the surveyed age group, people of 31 -40 years are brand conscious and exibhit high amount of brand
6. 52 18.30% loyalty and are particular about these branded products.
Price
65 22.88% 8. Apparels were purchased once in a year few years back, but now a days men purchase them once in 3-
Aesthetics
6 months
Quality 83 29.32%
59 20.77% 9. In the surveyed group age group of 41-50 buy and spend more amount on apparels. This may be
Comfort
because of the reason that they have good amount of earnings
Durability 25 8.80%
10. Occupation plays a very important role. Among the respondents doctors, lawyers and businessmen are
7. Why this particular brand (multiple answers)
more brand loyal when compared to other groups.
Suitable for my personality 16 14.28%
11. Loyalty depends on quality of the products. Those respondents who said quality was Important were
Enhances my status and image 54 48.21% the one who said that they will not switch on to other brands at any cost.
Everyone appreciates my dressing sense 10 8.92% 12. A majority of 36% of men were using the brand since 10-15 years.
Opposite gender gets attracted 8 7.14% 13. Status enhancement is one of the key determinants for purchase decision.
Envy others 9 8.03% 14. Respondents showed clear loyalty to their brands and were not ready to switch on to other brands at
To follow the trend 15 13.39% any reasons.
8. If the price of your brand increases would you purchase it 15. 92.35% of the respondents said that they would recommend their brand to others in case their opinion
Yes is asked.
66 79.51
No
4 4.81% Suggestions
Not decided
13 15.66% 1. India is known as the group of‘Cultures’. They have different festivals to celebrate. Every festival has
9. Would you recommend your brand to others its own tradition and customs. So, the companies have opportunity to provide different varieties of
Yes products in different region according to their festival tradition to capture the new era of competitive
77 92.77%
No market. Because there are customers who purchase branded products for exchanging gifts.
4 4.81%
Not sure 2. From the study we found that quality is the most important factor which motivates the customer regarding
2 2.40%
10. Are you a brand switcher consumer purchase decision. So, the companies have to more focus on quality and must not sacrifice it
Yes for profits.
Nil
No 3. The companies have to establish the link of their brand name with the customers by opening their
73 87.95% showrooms in kundapur town. If not possible, at least by different sources of communication they .Mil
Sometimes
10 12.04% make men aware of their products. Because men in Kundapur have to go to udupi or Mangalore to
Findings
purchase their branded apparels
1. 4. The companies also focus on the different group of incomes of the society. There are some people who
wish to buy branded products but they cannot afford it. So the companies plan to commence the new
Raymonds used by 24.9% of the respondents. 32‘53°/o resPondents followed by
ran ge of apparels under the same brand name at less cost
2. Majority of the respondents purchased their branded apparels without any special reasons 5. The uniqueness of the product is essential for the customer’s point of view. For this the companies
a.mforl.IS thC inûencing factor to choose the branded cloths followeTby amâesthetics and must be continuously engage themselves in research and developmental aCvthes. The compan.es
the new variety of products with time to time so that the link between customer
required to introduce
154 and brand will be exist permanently.
155
■I
6. Consequently, the development of emotional loyalty to brand that is founded on cognitive reasons CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF MCF
should receive attention in future research studies.
*Prof. Harish Acharya P.
7. Fashion must have value and purpose and truly resonate the consumers. Strong brands with consistent Asst. Professor in Economics, Govinda Dasa College
powerful messages can create loyalty and a sense of worth that transcends the burden of choice.
Introduction
Conclusion .. , .
The study of consumer behaviour helps marketers to design their marketing strategy. Marketing strategies
and plans can be devised only upon a reasonably good understanding of consumer preferences. The crux
profi • ofit maximization by the continued increase of efficiency is the most socially responsible way of
of the marketing concept is that the very existence of firms and their purpose is for satisfying customer
conducting business. This implies making quick money, with an utter disregard for the responsibility of
needs and wants. Two determinants of brand loyalty are brand experience and brand commitment. In order
business towards society. This limited view of business would prove to be counterproductive in the long
to gain a competitive advantage in the market place, marketers have to be able to develop a brand experience run. But on the other hand, the long-term gains rather than at quick returns, would take into account the
around their product or service offerings. The concept of brand experience is an amalgamation of various important dimension of social responsibility.
experiences such as fitness, quality, brand name, colour, fabric, price and style etc This enables consumers
to stick to a particular brand. However, in this study focus is only on men. They do not shop for products The ethical and social behavior of corporations is essential for the generation of the ultimate “Profit”,
or services only. They are on a lookout for emotionally satisfying experiences and brand loyalty highly owing its source to the reputation the corporation would acquire in view of its social behavior.
depends on sensations, feelings, and cognitions. Men consumers have their own perception and attitude Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute
towards apparel purchase. It can therefore be inferred that marketers of apparel brands should work to a better society and a cleaner environment. Corporate social responsibility is represented by the
towards creating a superior brand experience for the customers which would contribute greatly towards contributions undertaken by companies to society through its business activities and its social investment.
gamering customer satisfaction eventually leading to customer loyalty. It is therefore evident that each man Because the firm or company utilizes the water, place, labor, and environment so it becomes the
is different and perceives fashion differently. responsibility of the firm to look after the society. This is also to connect the Concept of sustainable
References development of the society.
Krishnan, H. Shanker (2015), “Characteristics ofMemoryAssociations: A Consumer-BasedBrandEquity Over the past few years there is an increasing number of companies worldwide started promoting their
Perspective," International Journal of Research in Marketing, 13 (4), 389-405 Corporate Social Responsibility strategies because public expect them to act sustainable as well as
Mehta, S. C., Lalwani, A.K. & Soon Li Han(2013). “Service quality in retailing: relative efficiency of responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures.
alternative measurement scales for different product service environments". International Journal of The Term Corporate Social Responsibility is impressive and its application differs. CSR can not only
Retail &Distribution Management, 28 (2), 62-72
refer to the compliance of human right standards, labor, society and social security arrangements, but also
Moorman, C., Zaltman, G. & Deshpande, R. (2013) "Relationships between providers and users of to the fight against climate change, sustainable management of natural resources and consumer protection.
marketing research, the dynamics of trust within and between organizations ”, Journal of Marketing
Research, Vol.29, No.3, pp.314-329 Conceptual framework
The concept of Corporate Social Responsibility was first mentioned 1953 in the publication ‘Social
Rajput, N, Kesharwani, S. and Khanna, A. (2012), “Dynamics of Female Buying Behaviour A Study of
Responsibilities of the Businessman’ by William J. Bowen. However, the term CSR became only popular
Branded Apparels m India", International Journal of Marketing Studies,Published by Canadian Center of
Science and Education, Vol. 4, No. 4 in the 1990s when the German Betapharm, a generic pharmaceutical company decided to implement CSR.
The generic market is characterized by an interchangeability of products. In 1997 a halt in sales growth led
http://www.studymode.com/essays/Rural-Marketing-1611795 .html the company to the realization that in the generic drugs market companies could not differentiate on price
http://www.iijcjoumals.Org/ijmssr/aug2014/2.pdf or quality. This was the prelude for the company to adopt CSR as an expression of the company’s values
http://www.uav.ro/jour/index.php/jebr/article/view/438 and as a part of its coiporate strategies.
http://info.shine.eom/industry/consumer-durables/21 .htm
Meaning of social responsibility .
ethical framework which suggests that an entity, be in an organization or
Social Responsibility is an
individual has an obligation to the perform i0 lt 10 maintain a balance between the
Social Responsibility is duty every
economy and the ecosystem.
Ill156 157
Strategies For International Markets
Redefining Redefining Strategies
For International Markets
! Present vari°us programs conducted regarding the health of the
society.
v To know vanous programs conducted for the
welfare of the farmers.
commitment by business to behave ethically and contribute to econom.c development while improving the
Methodology
quality of life of the workforce and their families as well as local community and society at large" iS Partly ?XplOra,0ry Pan'y explanatory. No secondary data relating to the
l>d uln h„, “I 3rc aVai'ablC' HCnCe' f0r lhis sludy particularly secondary data are not
relied upon, however certain books and journals were consulted for understanding of relevant concepts
The^concepfofCSR originated in the 1950‘s in the USA but it became prevalent in early 1970s. At that
and aspects of corporate and corporate social responsibility. The rcfetence to books periodicals and
time US had lots of social problems like poverty, unemployment and pollution. Consequently a huge fall in website are detailed in bibliography.
the prices of Dollar was witnessed. Corporate Social Responsibility became a matter ofutmost importance To generate primary data and information
a survey was under taken with the help of the officials of the
for diverse groups demanding change in the business. During the 1980‘s to 2000, corporations recognized company.The data and information collected are coordinated and analyzed in an integrated manner through
and started accepting a responsibility towards society. Corporate social responsibility (CSR) focuses on this work. The relevant data are presented in appropriate table in this paper. Some of the interesting data
the wealth creation for the optimal benefit ofall stakeholders - including shareholders, employees, customers, are presented in the form of charts, diagrams etc.
environment society. The term stakeholder means all those on whom an organization’s performance and
activities have some impact either directly or indirectly. This term was used to describe corporate owners
Scope and limitations
beyond shareholders as a result of a book titled Strategic management: a stakeholder approach by R. This study is confined to corporate social responsibility of MCF Ltd. To that extent this study is a ‘micro’
study. The issue of corporate social responsibility can be studied in all chemical based industries of
Edward Freeman in the year 1984.
Dakshina Kannada District of Karnataka state. The issue of corporate social responsibility can also be
1 According to Bowen, “CSR refers to the obligations of businessmen to pursue those policies to make
studied in respect of other industries in the country. However, those dimensions are beyond the scope of
those decisions or to follow those lines of relations which are desirable in terms of the objectives and
this study.
values of our society.
2 Frederick (1960) stated Social responsibility means that businessmen should oversee the operation of About the company
an economic system that fulfills the expectations of the people. Mangalore Chemicals and Fertilizers Limited (MCF), is the largest manufacturer of chemicals fertilizers
in Karnataka, India, with a turnover in excess of Rs. 3,000 corers. The factory is strategically located at
3 Davis (1960) argued that social responsibility is a nebulous idea but should be seen in a managerial
Panambur, 9 Kms. north of Mangalore City, on the banks of Gurpur River, along the National Highway 66,
context. He asserted that some socially responsible business decisions can be justified by a long,
opposite to the New Mangalore Port Trust. The plant is well connected both by Rail and Road. MCF is a
complicated process of reasoning as having a good chance of bringing long-run economic gain to the
subsidiary of Zuari Fertilisers and Chemicals Limited,an Adventz group company,which holds 53.03%
firm, thus paying it back for its socially responsible outlook (p. 70).
equity shares.The ‘Adventz’ Group,is an Indian conglomerate with global ambitions that participates in
4 An ideal CSR has both ethical and philosophical dimensions, particularly in India where there exists a and contributes to India’s economic growth and prosperity through transformational change. The group is
wide gap between sections of people in terms of income and standards as well as socio-economic partnered by world leaders in various areas of enterprises and has significant presence in agriculture,
status (Bajpai, 2001)
engineering* infrastructure, real estate, consumer durables and services which are the key drivers of the
5 Goyder(2003) argues: “Industry in the 20th century can no longer be regarded as a private arrangement Indian economy. The Adventz Group and the UB Group are promoters of MCF. The operations are managed
for enriching shareholders. It has become a joint enterprise in which workers, management, consumers, by a team of highly dedicated and experienced professionals. MCF is an ISO 14001 AND OHSAS 18001
the locality, govt, and trade union officials all play a part. If the system which we know by the name
Certified company.
private enterprise is to continue, some way must be found to embrace many interests whom we go to
The main products are;
make up industry in a common purpose).
1. Ammonia
6 CSR implies some sort of commitment, through corporate policies and action. This operational view 2. Urea, nitrogenous fertilizer, in prilled form
ofCSR .s reflected m a firm‘s social performance, which can be assessed by how a firm manages its 3. Di-Ammonium Phosphate(DAP)
societal relationships, its social impact and the outcomes of its CSR policies and actions (1991). 4. NPK Complex Fertilizer20:20:0:13,16:20:0, 10:26:26
Objectives 5. Ammonium -Bi- Carbonate (ABC)
6. Sulphuric Acid
♦ To understand the ac'ivities and programs conducted by Ihe company for the welfare of the society
7. Sulphonated Naphthalene Formaldehyde
❖ To highlight the social responsibility towards education.
8. Special fertilizers
IB- V i,
159
Redefining Strategies For International Markets Redefining Strategies
For International Markets 1
Data analysis and interpretation
Sustainable Development in its publication faking Good Business given to the public. But in MCF they think * of their comPany- Thcy need publico^ the benefits ; "jj
Sense ' by Lord Holme and Richard Walts defined “ Corporate Social Responsibility s the contmumg " don’t sen .ho pr„d„c, ”u^pn^“y k'nd °rpUbliCi,y f»r
commitmentby business tobehave ethically and contribute to economic development while improving,he
quality of life of the workforce and their families as well as local community and society a. large Sullya Thaluk (BldaLTvmage)0ThcyTLte!L«tedntrateT 2 of Govemmcnt^llr^ter in
development ^ nvested more than Rs.6, 00,000 for the improvement and
Health:
“Health is wealth” people believe in these words. But MCF takes care about these words not because of
any publicity or any kind of advertisement. They do take care about thousands of people where they
Project Eye-Care
Normal vision is essential for carrying out our
conduct many CSR programs. day to day activity efficiently. Defective or total loss of
1. Blood Donation : vision is not only a personal tragedy but national one too. Majority of blindness is avoidable (cither
MCF conducts ‘blood donation campaign’ every year. Where MCF collected 60 bottles of blood in treatable or potentially preventable), but a large proportion of those affected remain blind due to lack of
aw areness and access to affordable eye care. The Government and many voluntary agencies arc organizing
2013-14 from MCF employees and from their colony.
various awareness programs and free eye check-up camps in association with medical institutions to deal
2. OBG Campaign: with this problem.
OBG campaign is the rare campaign where it is conducted for ladies. But this campaign is conducted
in every 2 years. At MCF, they started program “Project Eye-Care” to prevent blindness especially in the rural areas in
association with K.S. Hegde Medical College Hospital (KSHEMA), Mangalore. The project was started
3. Free Cardiac Checkup :
in the year 2010 and 2 to 3 villages are selected every year to organize this program 2 to 3 times in a year.
In MCF special Cardiac checkup campaign is conducted every year. In Kunjathbail Marakada Government
School in the year 2013-14 there were 400 patients. In the year 2014-15 there were 463 patients who YEAR PLACE PATIENTS SPECTACLES SURGERY
have undergone free checkup. TREATED DISTRIBUTED CONDUCTED
4. Mother And Child Program: 2010-11 Sacharipete, Vogga 816 457 132
There is a special program conducted by MCF for mother and child. Every year the programs are 2011-12 Gundoori, Soorinje, Sacharipet, Vogga. 1090 650 94
conducted in Manjeshwara and Marakada School. In 2013-14 there were 150 patients in Manjeshwara 2012-13 Permude, Manjeshwara, Gundoori, Belvai 1399 923 176
and their 175 members in Kunjathbail Marakada Government School. 2013-14 Kalasa, Belvai, Kateel, Ballamanja,
Manjeshwara, Mundkur 2088 1250 305
5. Dental Campaign:
Dental campaign is conducted by MCF where 125 patients have been treated in the year 2014-15.
Every year this campaign is conducted. Interpretation:
Number of patients treated in2009- 2010 is 816 but in 2011-2012 it has increased to 1090. In 2012-13
6. First Aid Training Program total patients treated 1399. But in the year 2013-14 the number of patients treated has increased to 2088.
First Aid Training program is a program which is conducted in MCF colony and in nearby schools.
Recently in the 2014-15,107 members were treated. According to the available data as the number of patients increased the distribution of spectacles reached
to the peak In the year 2010-11 distribution of spectacles was 457. But in the next year (2011-12) it
7. Special Talks Conducted
increased to 650. In the year 2013-14 distribution of spectacles increased thr.ee from the year 2010.
Many talks were conducted on health awareness. Programs are conducted to the employees, public
and their family. Some of the special talks are, From the above it is clear that in the last 4 years 5393 patients were treated. Later free Spectacles were
❖ Talk on ‘Cancer and its Causes’ distributed to the needy patients. Later 707 patients’ undergone surgery.
❖ Bone density program
*> Health awareness program Education . „
❖ Talk on ‘Breast Cancer’ MCF has a special project named “Mangala Akshara Mitra .
❖ ‘Health and Hygiene’ talk
160 161
■I
plates, and water glasses are

International Markets
being provided free of cost to the selected Government Schools in the rural
Redefining Strategies
For International Markets 1
area.
The focus ofthe initiative is to promote education, to make schooling a pleasant experience to the children
by providing required infrastructure to selected schools in remote villages.
MCFL is also giving special attention to the Schools for Special Children (physically and mentally
challenged) by providing Water purifiers, Uniforms, Special teaching aids, furniture, Sanitation facility
etc.
CSR assistance provided to schools

❖ Black boards
❖ Table and chair for teachers
Interpretation:
❖ School Desks
From the above information it is clear that, MCF has conducted CSR activities also in educational field,
❖ School Bags
covering 127 schools. In the year 2010-11, 10 schools,2011-12, 34 schools, 2012-13,28 schools, 2013-
❖ Lunch Plates and Water Glasses
14,23 schools, 2014-15, 32 schools covered by MCF. From the above analysis we can understand that,
❖ Cupboards even though contribution ofMCF towards education fluctuates from year to year but the contribution to the
field of education is continuous.
Interpretation:
From the above table it is clear that,MCF spent more than 364.63 lakhs for the CSR activities. And in the Agriculture:
year 2010-11 Rs.36.5 lakhs contributed to the society. In the year 2011-12 total Rs.62.1 lakhs were MCF has been playing an important role in enhancing agricultural production and productivity, thereby
contributed and in the year 2012-13 there was a small flactuation in the contribution and amount spent concentrates on welfare of the farmers. They conduct innumerable programs which will help the farmers.
were, 48.9 lakhs. In the year 2013-14 there was increase in contribution as such they were contributed Some of the main places where these programs were conducted are, Hassan, Bangalore, Davangere,
59.2 lakhs. But in the current year 2014-15, there is remarkable improvement and the contribution was into Hubli, Raichur, Trichur, Calicut, Nellor, Kolhapur and Nashik. Some of the programs are:
the peek i.e.Rs 158 lakhs. I hereby conclude that, company aiso care about the society and contribute to the • Farmers training program INM meeting
society. Field day
• Filed visit
EDUCATION • Crop seminar Dealers meet
• Animal health checkup camp Soil test camp
PARTICULARS 2010-11 2011-12 2012-13 2013-14 2014-15 TOTAL Exhibition (small)
• Simple demonstration
No. districts covered 6 14 12 13 10 • Exhibition large ICCP
55
No. of schools covered 10 34 28 23 32 127 • Rural sports
No. of students covered 3790 5075 4732 6995 8500 29092 2012-13
TOTAL(Rs ? in Lakh) 36.45 48.89 48.89 59.19 158.00 351.42
Finifnlij taoiHMi*
AtealHtil! MM to f*- Otet Toul
Interpretation:
MM/A0
fognms*
FW V*u f« fry [Crap ta** ptekyptap N M
From the above table it is clear that, MCF created 52 I 13 I 14 I;j :
iu
M.
!■-
history by contributing Rs 351.42 lakhs for the

education purpose. It spreads over 55 districts of Karnataka covering 127 schools. MCF has contributed
Mum
|l^v.>ngnr
Ii JL Q t
i* I V I1
.1 I
±
1
1
5
J*
a
5 i
1
<>
*
1
n w.
17 1 0 l.J A A i
scholarships for school children covering 29092 students. From the above we can conclude that MCF has ii 0 jo J-L JL 1
a strong bond towards education. In 2010-11 it contributed Rs 36.45 lakhs, and amount increased to Rs
JL V) I 21 1 3 1 « 1 i ii
I
♦L
48.89 lakhs and in the year 2012-13 it remained constant. In the
I O o X JL
T
A 0 “ A
V
year 2014-15 it contributed RS 158 lakhs
J
'USL
and it is the highest contribution in the last 5 years.
J- H^H—r ■ UL.' 12
: n
6 I 24 I 2 ! I ! $ ? : 4i i o j ! -
6 | i2 j ' IT i us | 0 ! » i lor i j » : liii
n I U0 64___L_--- H--- i JL
163
-
t
MCFconcent^tesâUhe w^fareôTfamersMn^Ms'^r l/conêmralesât^'nia!1!! programsÔut^tjf6^ farmers training programme
places Raichur is the place where highest programs have been conducted (244 programs), nd the second
mda/ao 201213 201314
place goes to Nellore where 205 programs have been conducted. And in Bangalore is the place where 165 2014-15
programs have been conducted. Totally in the year 2012-13,1431 programs have been conducted. Bangalore 6 14 19
In this year 16 main programs are conducted, in which 655 programs have been conducted in simple Hassan 13 9 9
Demonstration for the welfare of farmers and their land. And ICCP program is the second highest program Davangere 6 7 26
conducted by MCF. Totally in this year 1431 programs have been conducted by MCF for the welfare and Hubli 17 14 32
development of Farmer and their land. Raichur 10 19 36
Coimbatore 8 12 13
2013-14
Trichv 4 8 20
I’M Van Im* Dm jcrcp OurkaJ r«p : ■ . ■ —
Calicut 10 6 6
j 73 i i I I i I*___ S'
---
teacj——
i i ? is i b i j I n
39
' r i*j i
;;;
IM Nellore 6 9 41
a 6 13
. —..-—‘-S-
Kolhapur
Nashik
6
9 20
6
-l-u- 190
113 235
J0‘ Total 92
S')
twi 1 in ■ »i n _5_ » I H frirr~T~ri^Tnr lit " i o ~ iST
Interpretation:
Interpretation: For the above information it is clear that in 11 main locations where farmers training program were
From the above figure it is clear that, MCF conducts farmer welfare programs every year. In the year conducted. In the year 2012-13,92 programs conducted. In the year 2013-14,113 programs conducted and
2013-14, 1623 programs have been conducted, where 11 places have been concentrated and 16 main it shows better improvement in conducting programs. In the year 2014-15 MCF conducted 11 locations in
programs have been conducted. In this year 788 programs have been conducted of sample demonstration in increasing in the program numbering 235.
11 places. And second place stands for INM programs where it contains 385 programs. In the same
condition 16 programs have been conducted for the welfare of farmers. INM MEETING
MDA/AO 2012-13 2013-14 2014-15
2014-15
Bangalore 52 65 71
19
raifeut ra-JVua. FiMDiy DfUraUw
s
Isk-P Hassan 32 38 46
s
i
T IF'
7 : i
fjtj Davangere 24 42 43
i. T a x 17 3
fe i • u . : »2
3 20
3t «J 0| Hubli 17
u i_ f O TtM
13 7 __ 4 ____ I I I B r i > j V-------ig 65 188
H Raichur 59
J____ loi_
Ca__
v:-- *1 ;n
7J
tc 0
II
2___ r±
J2_
__ Coimbatore 22 41 42
13 46
| X
I m
i
mi
I
:
v
j»
i o
* u 5“3 , , 6
10 I II?
O 1 11
34
r~H" 1 r-rnrp -1 Trichy 17
27
It I «« I 12 ! 120 J 3 S oj 24 25
Interpretation: Calicut
51 80
In the year 2014-15, there are Nellore 67
. . remarkab,e improvements form the comparison of 2 years Where the total 29 30
Kolhapur 24
eonduTd ° ,h r , m ,a'ChUr 466 pr08rams have been take".and hiShast programs have been 13 38
onducted m th.s place^ In the place Davangere 266 programs were conducted Simple testing and Nashik 12
385 631
demons,rat,on were conducted.F,eldvisi, is thesecond programs conducted by MCF wer 266 program* Total 350
have been conducted for the welfare of the society.
• 165
164 fi
Interpretation:
'HetlTaL U is clear that, MCF has conduced INM Meetings where RM taxoneein The above table represents the ‘Soil Tcs
1, loea, ions. In iheyear 2012-13, MCF has conducted 350 programs. In,he next year 2013-14 here was 2013-14 and 2014-15 we rn . 1 Concûctcd by MCF. By comparing soil test camps between
compared to the year 2014-15. It alsoshowsT".tha1, T\^ ** Conductcd in the ycar 2013‘14 is morc
385 programs conducted and there is a slight increase in the programs. In the next year 2014-15 was --------------------------- ----------- ial’ regularly soil test campaign is conducted in 11 locations.
631 programs conducted. And there was a remarkable increase m ihc programs. SIMPLE DEMONSTRATION
M DA/AO 2012-13
FIELD VISIT 2013-14 2014-15
2013-14 2014-15 Bangalore 56
MDA/AO 2012-13 73 73
16 29 Hassan
Bangalore 13 65 67
13 4 14 Davangere 106 104
Hassan 119
6 3 37 Hubli 86 53 52
Davangere
Hubli 5 4 17 Raichur 125 145 150
Raichur 0 1 49 Coimbatore 40 92 77
Coimbatore 21 9 13 Trichy 11 25 104
Trichy 0 2 7 Calicut 43 46 56
Calicut 1 4 4 Nellore 101 96 52
Nellore 5 13 40 Kolhapur 46 41 24
Kolhapur 7 9 19 Nashik 41 48 117
Nashik 6 10 37 total 655 788 891
Total 66 75 266 Interpretation:
Interpretation From the above table it is clear that, MCF conducts Sample Demonstration from the farmers. Sample
The above table shows the details of ‘Field Visits’. In the year 2014-15 the percentage of field visit is collected from Raichur is higher than the other place. Continuously from last three years it remains in the
comparatively high when compared to previous year. In the year 2012-13,16.22% is the least field visit first place. Kolhapur is least concentrated. Davangere is in the second place where MCF concentrates and
done by MCF compared to the total average in three years. But it is clear that, Field Visitors visit every 11 farmers get benefited. Nashik, Trichy are the places where more programs were conducted. In the year
locations to improve and educate the farmers. 2014-15 with the comparison it shows more programs conducted in the past years.
SOIL TEST CAMP EXHIBITION
MDA/AO 2013-14 2014-15 2012-13 2013-14 2014-15
MDA/AO
Bangalore 73 14 Bangalore 8 8 8
Hassan 65 7 2 6 14
Hassan
Davangere 104 6 0 4 6
Davangere
Hubli 53 6 6
4 Hubli 8
Raichur 145 5 5
13 Raichur 7
Coimbatore 92 2
7 Coimbatore 2
Trichy 25 8 0
Trichy
Calicut 46 1
2 Calicut 1
Nellore 96 2 0
11 Nellore 2
Kolhapur 41 0 2
Kolhapur 1
Nashik 48 10 1
Nashik 48
total 788 82 34 35
Total
II 166 A
167
Interpretation:
The above table shows that, the number of Exhibitions conducted by MCF m different locations In the ycar
2014-15 Hassan stands in the first place when compared to the past years. Coimbatore. Tnchy, Cahcut,
awareness on Environmental protection among employees and public.
Nashik where fewer Exhibitions are conducted. In the year 2012-13, Banglore and Hubl. stand the f.rs,
4. Rainwater Harvesting measures.
place when compared to the other places. In the year 2013-14 Banglore stands in the first place, where
Hassan and Hubli stand in the second place. sectionto raw ! P|°V,*,0nS 10 Collect roof water from the roof tops of some buildings near Utilities
MCF Tow h' Va C i S °rage t3nk 3nd Util'Ze the same in the waler in thc Water Treatment Plant. At
YEARLY PROGRAMS CONDUCTED Township is also provIS1on is made to harvest roof water and recharge the bore wells.
2012-13 2013-14 2014-15
M DA/AO Findings
Farmer training program 92 113 235
MCF conducts, Blood Donations, OGB campaign, Cardiac Checkup, mother and child program, and
INM meeting 350 385 631
many more 11 sub programs are conducted for the welfare of thc society.
Field visits 66 75 266
* Project Eye Care is the regular campaign conducted by MCF. From the past four years more than 13
Field day 9 9 13
places Eye camp are conducted in which 5393 patients were treated, 3280 spectacles were distributed
Crop seminar 12 11 32 and 707 patients undergone through further surgery.
Dealers meet 11 3 8 ❖ MCF has a special programs conducted such as, ‘MANGALA MITHRA’ where basic needs ofeducation
Soil testing 57 53 82 were fulfilled such as, black boards, tables and chairs, school desks, bags, lunch plates and water
Soil demonstration 655 788 891 glasses, cupboards etc.' 364.63 lakhs were contributed for the education purpose.
Exhibition (small) 34 35 48 *> India is a developing country, where MCF tries to pull tribe people upwards where they contribute
ICCP 107 127 120 8.43 lakhs for the development of tribal community.
Interpretation: ❖ It looks after the special children, where they contributed 4078 lakhs for the special schools in south
With the comparison it is clear that, 10 programs are conducted by MCF. Where soil demonstration reaches India.
the peak from past three years. INM meeting is conducted every year. In the year 2014-15,631 programs ♦> Yearly contribution towards Education is 351.42 lakhs. Where 55 districts, 127 total Schools are
are conducted. In the year2013-14, soil demonstration program is conducted more while comparing with covered and 29092 students are looked after by MCF through the program, ‘MANGALA MITHRA’.
other programs. Field visit, crop seminar, dealers meet, soil testing, exhibition it shows below average ♦> In the field of agriculture, where MCF conduct many programs like farmers training program, field
when compared with soil testing, INM meeting.
visit, crop seminar, soil test campaign, exhibitions, ICCP programs, rural sports etc. and 13 programs
Other activities of MCF conducted in South India.
Activities at ‘PILIKULANISARGADHAMA’: * They look after 71 places in South India, where Farmers welfare activities are conducted. Farmer
MCF have actively involved and coordinating with “Pilikula Nisargadhama” near Mangalore in welfare activities are conducted in 11 places and in the three years 5420 programs are conducted.
development and maintenance of new ecological and environmental initiatives like, ‘Aquatic Park’.
1. Adoption OfAnimals At Pilikula Park: Conclusion
MCF is a major fertilizer manufacturing industry in south India. It plays a pivotal role in increasing the
Annual maintenance, charges for adoption of‘Samar Deer’
agricultural output of fanners especially in Karnataka state. Being a medium sized industry with all problems
2. Integrated Nutrient Management And integrated Farm Management for the benefit of farmers it is able to render yeomen service to the society by undertaking social responsib.l.ty m different forms as
of Karnataka: per the principle of Corporate Social Responsibility.
Activities under this project is Technical Advisory Service to farmers addressing issues relating to The remarkable social welfare activities of MCF has set exemplary for other industries. Most important
so,l management, plant nutnenl management, pest management and water management through crop soda^welfere activities such as, Eye Campaign, Akshara Mithm, free soil testing, fanners training testing
semmars, demonstrahons, product trials, training programmes and field visits Under the above two in the arena of Corporate Social Responsibility of Business.
etc. has become a mile stone
pilot Agri- projects were started in Hassan and Chikmanglur and two more projects are proposed a.
Bangalore andHubh.In these schemes farmers were given technical sendees, their harvest ^collected,
processed and sold giving responsible returns to them.
168 169
■I
■
Redefining Strategies
I
F°r International Markets
Bibiliography RESEARCH AND DEVELOPMENT IN LARGE SOFTWARE COMPANIES AND
Books MULTIPLE ORIENTATIONS- A CASE STUDY OF INFOSYS
• Madhumita Chalterji: Corporate Social Responsibility
*Sonia Viswam
• Sanjay K. Agarwal: Corporate Social Responsibility in India SAGE Publications. Ph.D Scholar in Financial Mana
gement. Department of Business Studies Central University of
• CA .Kamal Garg: : Corporate Social Responsibility- Bharat Law House PVT.LTD. Karnataka, Gulbarga- 585 367
• Fernando, A.C, ‘BUSINESS ENVIRONMENT’ Introduction
Published by Dorling Kindersley (India) Pvt Ltd.
The role of Research and Development in the Software sector is inevitable. Also the long term competitive
• GC Berli ‘SOCIAL RESPONSIBILITY’Tata MC Graw Hill publishing Ltd.
a van age an t e survival of the software companies is dependent on the Research and Development
• Mangala Vartha (MCF monthly Magazines) activities and the innovations they arc going to bring. But at the same time R & D is confined mainly to
• Mangala (Quarterly News Letter) adaptive area of multiple orientations .There should be R& Ds in other orientations also. Also the
Internet generative and adaptive and other strategic learning should combine to transform the organization into a
www.mangaIorechemicals.com fully reactive and thriving entity. So the purpose of the paper is to analyze the R &D‘s effectiveness on the
gross profit of the company and linkage of the R & D initiatives with the creation of innovations and
WWW.wikepedia.org creation of new knowledge and integration of new knowledge.
www.tatateleservice.com
Literature Review
www.mcfltd.com
In the modem strategic management the existence and competitive advantage of a company is based on the
http://www.scribd.com
multiple orientations rather than a single orientation. The multiple orientations can be market, customer,
www.businessdictionary entrepreneurial, technological etc.(Schindehutte, 2008)
Pearson (1993) has already proved that a firm concentrating in one orientation will not be successful in the
long run. But usually the Research and Development activities of a firm is concentrated around the new
Software development according to the changing needs of the market .But there is no Research and
Development activities in those multiple orientations and the integration of those knowledge into one. This
can produce a bigger impact on the performance of the software industries. Different studies have been
done in the area of the combinations of these multiple orientations. Some researchers are of the opinion
that risk taking factor of entrepreneurial orientation is against the performance ofthe software companies.
Covin and Slevin (1989) and Li et al (2008) have proved accordingly.
Organizational learning and Entreprenuership: The role of the organizational learning in the survival of an
organization is indispensable. Actually organizational learning is a byproduct of the entrepreneurial activity
in an organisation. Wang (2008), Slater & Narver (1995) states that entrepreneurship and the learning of a
company are directly related.
Also the learning of a company can be differentiated on the basis of the aim of the learning. Different
orientations create different type of learning. Market orientation creates the ‘adaptive learning’. This
learning is for the survival of the organization. Whereas, the generative learning is created by the ‘learning
for the learning sake ‘within an organization.(Baker & Sinkula, 1999)
According to the opinion of Tiwana (2003) the global IT companies have to integrate their knowledge into
an interactive whole to exist in a competitive environment.
knowledge explosion, the companies have to create new knowledge from time to
Also due to the
time.(Mathaissen & Pourkomeylian, 2003)
170 171
<
Redefining Strategies For International Markets Redef'ning Strategies For International Markets
les i, is hard for companies to exist without producing new knowledge Methodology
Also as new knowledge prolifera
scientific knowledge management. The methodology is the cas'
and manage themselves without the proper
(Conner & Prahlad, 1996) exploratory case study method which wdl shed a if n “P^res of the Infosys. This is an
organization. This is based on the grounded th ? .°" mCthod °f r',"c,ionine of R & Ds in the
kind of learning is required to manage knowledge and to combine the different learning in
So a new trend in the R & D expenditure is found ont bv^T f CmP °y! OTSScd compariso" >™=,h°d-Als0 the
relation to different multiple orientations. of thp knnwlprW 1^ annua rcPorts of Infosys. Also it is analyzed on the basis
rareas nlarZ£!, management theories to understand the multiple orientations existent in the Infosys. A
According to the Infosys website the R and D services arc working in two majo c p so one on the basis of R & D expenditure of other IT companies. Also the future of
1) Machine to Machine services multiple orientations in the company is predicted on the recent trends in the IT industry.
2) Mobile Infrastructure services Findings
It helps them 1) To increase their profitability. RORC= Current Year’s Gross profit
2) Predictability in the market Previous Years R and D Expenditure
3) Ability to innovate
INFOSYS PROFIT AND R & D expenditure
4) Improving the products quality
2017 18938 351 351 49.31771
5) Helps Differentiation
2016 17600 384 31 415 29.09091
The impact of the Research and Development on the profitability of the companies is arbitrary. But the 2015 19472 590 15 605 22.3047
method to measure the impact of the Research and development on the profitability is the Return on
2014 17603 873 873 19.28039
Research Capital.
2013 36765 907 6 913 55.70455
Silvola, H (2006) states in his research that there is no significant difference in the capital budgeting
2012 31254 655 5 660 59.3055
process employed by the small software companies and the large software companies. Also the formal
sources of capital are used for the strategic investment in high tech companies. The R & D intensity, the 2011 25385 521 6 527 57.69318
size of the software industries etc. do not affect the methods used for the measurement of the cost of the 2010 21140 437 3 440 79.17603
capital. 2009 20264 236 31 267 100.8159
2008 15648 201 201 93.7006
It was found that cross border acquisitions will help in the innovation of the organization .Also it will also
provide greater profits for the organization to invest in the R & D activities and innovation. (Kobrin, 1991) 2007 13149 167 167 128.9118
2006 9028 102 102 122
Also it can be also based on the strategic orientations of the organisation.In some organizations like
6860 74 74 154.0189
organizations in Korea the executives give importance to the growth more than the returns whereas the US 2005
executives give more importance to the returns more than the growth. Also the type of strategic orientation 2004 4761 43.06 1.48 44.54
may not be helpful to the company if they did not choose it consciously. The Daewoo Motors preferred
growth whereas the General Motors preferred the returns and it proved disastrous to both of them. (Hitt
etal, 1997)
R & D Expenditure
It is not assured that spending for R & D will always bring success. The return on the investment is also not
a justification for spending on R & D, There are other factors which are affecting it like the product life
1000
cycle. Also an investment of around 50 % of the revenue is advisable for this. Also sufficient care should
be taken to the definitions given to the R & D expenditure. Some define it just as the amount spent by the
500
engineering department without even considering whether it is used for developing a new product or not or
whether ,t ,s used for producing some innovations. So R & D Effectiveness Index is introduced to measure
0
the effectiveness of R & D expenditure instead of the R& D expense as a percentage of the revenue return , 2 3 4 5 6 7 8 9 10 11 12
based on the next year. R &D Effectiveness lndex= % of new product revenue*(net profit %+ R & D %)R
& D percentage (McGrath & Romeri, 1994)
«'»................................................................................. *hi
■■■■■■■■■■■ ■ ■ ■173 m
SEGMENTAL INCOME OF INFCrevg-
RORCOF INFOSYS Europe North America India Rest of the World Total
Revenue from Operations 38578
200 13019 1798 5894 59289
Identifiable Operating Expenses 6664 20337
100 786 2805 30592
------ RORC Allocated Expenses 2523
0 7479 345 1133 11480
segmental Operating Income 3832 10762 667 1956 17217
(Source: Infosys Annual Report)
New Prospective areas of Learning and Knowledge Management for Infosys
According to the Nasscom Report of 2016 it was found that the predicted revenues from world wide
export by the Indian 1T-BPS companies is USD 116 for the Year of 2017. And it would be 124-125 billion IT REVENUE BREAK UP CHART OF INDIAN IT COMPANIES
USD for the year 2018.This will provide an expected growth of 7-8 %.And the expected Domestic Revenues YEAR EXPORT DOMESTIC E-COMMERCE HARDWARE TOTAL
will be 24 USD dollar for the year 2017 and 26 -26.5 USD for the year 2018.This will provide an 2012 69 26 13 13 121
expected growth of 10-U%.The worldwide software services growth is expected to be 5.4 % in 2017 2016 108 22 13 13 156
over 3.2 % in 2016.
2017 116 24 14 14 168
R & D Expenditure of other IT companies
From this it could be understood that the major opportunity for growth lies in the export of software
Here are the details of the R and D Expenditure of other companies as a percentage of sales.
technologies. And the export area shows a consistent growth. The other areas like domestic, e-commerce,
As percentage of sales hardware do not show a consistent growth. The total Incremental revenue added in the financial year of
Company R & D Expenditure Sales & Marketing Expenditure 2017 is USD 12 billion. Also there has been a consistent growth of 47 billion USD spanning in the last 5
SAP 14% 25% years. So the future prospects show a growth in the IT industry.
Symantec 15% 40% Type of Revenues generated and the percentage
Oracle 13% 20% FY2017
Type of Revenue FY 2012
IBM 6% 1%
Onshore revenues 48% 59%
Microsoft 13% 20% 7-10%
Platform revenues 4-7%
Infosys subsidiaries in overseas and the R & D expenditure Digital Revenues 4% 15-20%
Onshore and Offshore revenues of Infosys 39% 64%
Digital M& As
2017 2016 lie in the Artificial Intelligence, Design, and Cloud etc. Also there should be value
Onshore revenues So the prospects
54.2 52.7 Since the share of the digital revenue shows more the
Offshore revenues 45.8 47.3 creation by the sha™h8^ the revenue is projected more in this area in the coming years.
propensity for gro
Onshore revenues are for ,he works whtch are done for the development renters outside India whereas
offshore revenues are the revenues which are done a, the development centers in ,„dia But though the The percentage in M & A s
revenues from onst.e centers are with higher pereapita; they are with a lower gross margin
THE BILLABLE HOURS EXPENDED a 8PM
2017 2016 S ER&D
Onsite 27.2 31 Digital

26.6
□ IT services
Offshore 72.8 73.4
a S/W products
So the onsite revenues have a great impact on the margins of the lev
174
enues of the software companies.
nnBBBBBBBaa - 175
■I
for the banks etc. The
distance ofrmwidino r>, mpa0^ aclopls the method of zero distance where the company maintains a nil
The percentage of factors customized solutions to themtome^Wh8'° T ^ ^ ^ Platf0rm of,hc clic"‘ pr°vidCS
in Digital end statements they were automating the n,
If . y
“ hT d'tT“:l,l'ics in reco"cilinB with the monthli'
e automating the process and the suitable solution was found out .All these show
that the Infosys is concentrating around testing new configuration of existent ones but there is an increasing
Bothers tendency towards innovation which may gain sufficient momentum in future.
■ Cloud
But on the basis of the knowledge management theories of Zack (1999) categories knowledge thus- ‘the
Analytics core now e ge -essential for existence, ‘advanced knowlcdge’-which provides the competitive survival
■ Mobile capability, ‘innovative knowledge’-which helps the innovative long term competitive advantage capability
.This can be connected to the Baker & Sinkula( 1999) multiple orientations where market orientation can
be connected with adaptive learning which leads into Zack’s ‘core knowledge’ and may lead into ‘advanced
The new job roles hover mainly around the mobile networking area which constitutes the major chunk of knowledge if it helps it to survive in the industry. But this has to be proved in later years. The ‘generative
the digital technologies. It can be in the areas of mobile app development, development of interfaces, learning of Baker & Sinkula can be connected with the ‘innovative knowledge of Zack. And the R & D
Social media, data scientists, cyber security etc. And the new skills are Internet of Things, Artificial capabilities and multiple orientations can be identified on the basis of this definition. The Infosys is trying
Intelligence, and Cyber Security etc. Other prospects-the digital payments have got an annual compound hard to survive in the competition; Also innovations are just to satisfy the needs of the customers in the
growth rate of 50%.The e- commerce sector is growing by 19 %.The mobile transactions has increased by market. There is no generative learning taking place here. So there is no innovative knowledge creation in
40 times in the last years. Infosys. Only adaptive learning is taking place here. So only ‘core knowledge’ which may lead into
‘advanced knowledge’ is taking place here. There is no combination of different learnings or multiple
Analysis of the R & D expenditure returns and its linkage with innovation orientations. It is mainly confined to adaptive learning resulting into marketing orientation. Also in connecting
Here the expenditure on the R & D is showing a decreasing trend and rises up in 2011, 12, 13 and then this with Schindehutte (2008) definition of multiple orientations it could be understood that ‘marketing’
again decreases. At the same time the RORC is showing a decrease trend until and then shows an increasing and ‘technological’ orientations are present whereas the ‘entreprenuerial’ orientation is absent. The
trend in 2015.So the investment in the Research and Development activities may becoming evident in the ‘entrepreneurial orientation can be connected with Baker & Sinkula’s ‘generative learning’ and Zack’s
later periods that is within a span 2-3 years. So also the fact whether the increase in the innovative element ‘innovative knowledge’. So entrepreneurial orientation, generative learning and innovative knowledge is
in the R & D activities, leads to the proportionate increase in the returns of the organization is to be totally absent in Infosys
explored further. The McGrath Romeri formula for the effectiveness of R & D is not used here since its
credibility is to be proved by fiirther researches Since new software products are to be developed in the software sector within a short span of time, the
product life cycle is very short in the software sector. But at the same time the spending on R & D cannot be
But the R & D expenditure in Infosys is not directly related to innovation. Usually a small portion of the R avoided for Infosys in order to survive in the Industry. But in relating the product life cycle with the R & D
& D is used for innovation. The majority of the R & D expenditure is used for testing the configurations of spending; the R & D expenditure in developing one software cannot be expected to produce returns for a
the software already present. So the R & D expenditures are not necessarily leading towards innovation. longer period. So even though R & D activities are efficient and effective it may not provide sufficient
According to the annual report of the Infosys 2016-2017; it is giving importance to software led automation. profits due to the shorter product life cycle.
The automation is for replacing people with machines. So the R & D is going on in the sector of Data
Also though there is sufficient income from the onsite centers their gross profit margin is low. So they
analytics, knowledge curation, process monitoring, and fixing test frame works etc. These are for the
cannot be said as deriving sufficient income for the R & D expenditure. .Since the segmental operating
automation of services in BPO sector, services, infrastructure etc.Panaya is software developed by Infosys
income is highest for the European segment .there is scope for further studies whether the income obtained
for automation in the field of enterprise resource planning (ERP).This helps the businesses to develop test
scripts of the business processes and at the same time it can be documented. This should be utilized only for the R& D innovation expenditure in the European area or for the all
will help to save time, from there
the areas in general This extends the scope of the argument on the applicability of multiple orientations -
costs etc associated with the business processes. Assist Edge which is robotic automation equipment will
help to digitalize the business processes very well. Also Nia is software which will help in the automation should be region based or based globally. Also .his shows .ha. knowledge management is a dynamic
with the customers, other stakeholders, technology, innovative capacity etc. So the
of the information technology based business processes. It helps in the data extraction classification, process of interaction
resolution of the data etc. This will help to automate the processes of deterministic, intelligent and cognitive
areas. This has almost helped to replace work force of more than 11,000 inside Infosys So many other
sectors are also using Nia platforms like pharmaceutical sectors for the forecasting of sales fraud analysis
w.............. •1
177
organization which was proved by previous researches.

*R,c,o uc U , Mahammad,rsh°dM **Dr. ChandrashekarR
Conclusions **7 • C ° 3r’ °ePt °f Business Administration, Mangalore University, Konajc.
The R & D activities are not producing immediate returns. The definition of R & D is not related to Assistant Professor & Research Guide Dept of Business Administration
innovation in Infosys .The R & D expenditure is not leading into innovations. It is just for testing the Mangalore University
configurations of new software. So the company is not able to move from the realm of core knowledge
which may lead into advanced knowledge. Multiple orientations is lacking in Infosys. They are concentrating Introduction:
mainly on the adaptive learning and market orientation in the multiple orientations. The entrepreneurial Investment is a plan to make our surplus money double. In finance, the purchase of a financial product or
orientation is totally absent and there is no innovative knowledge creation. Also it is confined to core other item ofvalue with an expectation of favorable future returns. The financial and economic meanings
are related to each other because the savings of the individual flow into the capital market as financial
knowledge and advanced knowledge creation. So a new perspective to learning, research and innovation
will help the Infosys to gain competitive advantage over other IT companies. Also the onsite segmental investments, to be used in economic investment. Even though they are related to each other. We arc concerned
revenues are insufficient to fund the R & D activities. Also in the context of the modern technologies like only about the financial investment made on securities.
cloud computing, digital analytics etc, the scope and the opportunities gained from multiple orientations Investment is the employment of funds on assets with the aim of earning income or capital appreciation.
are ever increasing. The IT companies cannot thrive just by investing in developing new software. They Investment has three attributes namely time, risk and return. In general, investment means sacrificing present
could only survive by the combinative learning resulting in multiple orientations resulting in innovative consumption for future return. This attribute of investment indicates the risk factor. The risk is undertaken
knowledge. Also different learning combinations may ask for the challenge of different type of knowledge with a view to reap some return from the investment.
management. Knowledge Management is inevitable for the survival ofsoftware companies including Infosys.
Also knowledge management and learning and the suitable combinations of multiple orientations is subjective Review of literature
to an organization. So learning strategy should be developed and the multiple orientation should be Ranjith (2002) reveals that the increase in age leads to increase in tendency to invest and to take risk
strategically combined based on the learning within an organization. declines. It is found that working class people are actively involved in share business. The respondents
who are graduates actively participate in investment activities. Therefore, the study reveals that the investor’s
References awareness about the investment decisions is limited to financial performance of the company.
1) Schindehutte, M.and Morris M, H and Kocak,A. (2008)”Understanding market-driving behaviounthe
role of entreprenuership”. The Journal ofSmall Biasness Management. Vol 46.Nol.pp 4-26 Bahmanpour (2002) identified the determinants of savings and investments which are drawn from the life
cycle model of consumption. In which individuals maximize the present value of their life time utility, with
2) Pearson, G, J (1993).”Buisness Orientation Cliche or substance?” Journalofmarketingmanagement a budget constraint related to whole life income. Further reveals that the variables such as population,
income growth, and interest rate inflation and tax rates have affected the savings.
3) Covin, J.G and Slevin D,P (1989).”Strategic Management of Small Firms in Hostile and Benign
environments -Strategic Management Journal.Vo\ lO.Nol pp75-87. Challan (2003)found that majority ofthe investors prefer real estate investments followed by mutual fund
schemes, gold and other precious metals. The investors invest more in real estate assets followed by
4) household sector He also states that most of the investors like to invest in debt instruments owing to their
assured and risk free return. Further he reveals that majority of the investors are very much interested in
investing in growth schemes to take the reinvestment benefits rather than the regular dividends.
5) WangC,L(2008)”EntreprenuerialOrientation,learning orientation,and firm
performance".Entreprenuership theoiy and practisedol32.No4 all investors about the stock market is not up to the
pp635-57 mark^Heôp^nes^dtaUhe^mrirhivestors shoui1dbeepSroPer'y taught to create investors confidence as well
8) Malhiassen, L, Pourkomeliyan,P (2003) “Managing Knowledge in
ofKnowledge Management Vol 7 No:2 pp 63-80 a software organisation’Voi/rMtf/ as for strengthening market integrity in the country. He also found that small investors refer the price
elmingl raho, beta value of the share through the da,a bank published m some Investmen, magazines
18)http://www.nasscom.in/site<;/H f
NASSCOM_Annual_Guidance_FinaL22062017.pdflAcessed21/09/2017 3 U 1 1 7 f 1 1 e S before making their investment decisions.
19)www.infosys.com[Accessed 23/09/2017 of association between demographic characteristics and the
Rajarajan (2003) brought out the existence reveals the investment avenues of salaried members. It
risk bearing capacity of Indian investors. The stu y
178 179
■■■■
is found that the relationship between age, income and the risk bearing capacity of the investors are very 1. Money Market Instruments:
high and salaried members constituted the largest part ofall risk categories.
a period of short ternTnT ^ ^ W'th debl instrumcnt- These instruments arc available for
Thomas (2005) suggested that an optimum plan of saving schemes will bring maximum return and lesser n maturity period is less than one year. They are;
tax burden to the tax payers. Further he reveals that in the new scenario, the savings in the form ofcontribution a) Call Money Market:
of Pension Fund will take a portion, tuition fee paid for children also take a portion. He also states that
those who are having housing loans can opt for enhanced payment of Housing Loan principal amount and “’S “ N°tice M°"ey Market or Term Money Market. Returns arc fixed for a certain
P 10 . is a market for short term funds or instruments, which is less than I year.
has the benefit of reducing the interest liability. He states that out of the rest of the amount at the disposal,
20 per cent to 30 per cent could be invested in reliable mutual funds promising high returns. b). Treasury Bills:
It is short term borrowing by the government of India (maturity period: 14,91,182, and 364 days).
Kasilingam and Jayabal (2008) analysed that around 95 per cent of Indians agree with the existence of
These types of TBs are sold on the auction basis and these bills are redeemed at par and discount.
motives to save money and 75 per cent of the people have high level of motivation towards savings. Sellers = Central Govt
Another important study states that the level of motives has a significant influence on size of savings. Buyers = Banks, Financial institutions etc.
Devi and Kanchana (2008) stated that the response ofthe salaried income group towards various savings More liquid and issued by RBI and TBs takes place when RBI needs money.
schemes and investment is poor. Their intention is tax savings and for this, their preferences are provident c). Certificate of Deposits:
fund and life insurance policies. It is found that steps should be taken to create awareness among the It is marketable receipt of funds deposited in a bank for a fixed period at a specified rate of
investors about other savings schemes and investment avenues. Further analysis states that majority of the interest and readily negotiable.
respondents have not preferred to invest their savings in U.T.l. and Mutual funds due to lack of information. • Rate of interest on them are high
Objectives of the study: • It is mainly preferred by the institutional investors and companies rather than individuals.
• To study the investment avenues available to retail investors. • Minimum size ofthe certificate is Rs-10 lakh. The minimum amount is issued in multiplies of
Rs- 5 lakh.
• To keep the value of money from inflation.
• To satisfies our future financial goals. d). Commercial Papers:
• To get a good return from our ideal money. Commercial Papers are short term negotiable instrument with fixed maturity period. It is an
unsecured promissory note by the company either directly or through banks.
Sources of data collection: • Mainly CPs are sold at a discount and redeemed at their face value.
Research methodology is a systematic action of doing research. Primary and Secondary sources are used • Denomination of commercial paper is high.
for the collection of data. Primary data collect from well structured questionnaire survey method Secondary • Maturity period extended to one year.
data collected from referred journals, published articles, stock exchange reports and website etc. 2. Negotiable Instruments:
Sampling Unit: Karnataka These instruments can be transferable from person to another at the time of buying and selling. They
Sampling size: 50 respondents
are;
Sampling Technique: Random.Sampling technique a). Equity shares:
Retail Investors Equity shares are commonly referred to com mon stock or ordinary shares, a common man also trade
equity shares but they need to have demat account.
According to Ministry of Corporate Affairs retail investor's also known as individual investors Retail
investors are differing from mst.tutional and non -institutional investors Retnil in,,, , u nr
those who invest less than Rs- 2,00,000/- in stock market are known as retail investors ’ Preferenc^sharesTlsc^knowrt as hybrid shares. These shares have got first preference in sharesÂt the
, imeofliquida.ionofacompanyf.rs.preferet,cewillbcg,v=n,o thesesthateholders and also preference
The following are the investment avenues available to the retail investors Invrct
classified into 3 types. They are as under, 1 ment avenues can be shareholder gets fixed percentage of dividend annually or semi annually.
1. Money Market Instruments
c). Debentures and Bonds: a fixed interest rate. Generally debentures are issued by
2. Negotiable Instruments:
Debenture is a certificate of debt having
3. Non Negotiable Securities: promissory note for raising capital. Bond is a long term debt
private sector companies as a long term.
II 180 ■■■■■■■■■■■■■■
■ ■ ■
■■■■■■■■
181
interest for specified period of time. Public Table No. 01: Questionnaire distributed to the
respondents
Gender Questions distributed Percentage
sec Male 37 74%
d). Warrants: Female 13 26%
It is bearer document of title to buy specified number of equity .hares ata specified price, .t gives right
Total 50 100%
buy .he equity shares after eertaiu period a. certain rate. That pnce ,s known as stoke ,n prtce”.
Table No. 02: Awareness level or Retail investors in Investment Avenues
e). Derivatives: Investment Avenues
those assets whose value is determined from the value of some underlying assets. The Male Female
Derivatives are
Gold and Silver y y
underlying asset may be equity, commodity or currency.
Bank deposits y y
3. Non Negotiable Securities: LIC y y
These instruments cannot transferable unless the holder permits to withdraw or transfer of funds.
Treasury Bills y
a). Bank Deposits: Shares y
It is the simple investment avenue open for the investors. Deposits earn fixed rate of return. Even Debentures and Bonds y
though bank deposits resemble fixed income securities they are not negotiable instruments.
Certificate of deposits
b). Post office Deposits: Commercial papers
Post office issues deposits from general public. It performs several activities like fixed deposits, KVP&IVP y y
savings account, and recurring deposits etc. Post Office Savings Scheme y
c). National Savings Certificate: National Saving Certificate y
The scheme is offered by post office. Denominations are 500,1000, 5000 and 10,000. It has 5 years Derivatives & Warrants
maturity period and no deduction at maturity.
Table No.03: Most preferable investment avenues opted by the respondents
d). KVPandlVP:
These are saving certificates issued by the post office with the name Kisan Vikas Patra and Indira Most Feasible Investment
Vikas Patra especially for farmers and planters. Avnues
Postal
e). Provident Fund Scheme: Savings.
Provident fund is a contribution of employee and employer for employee’s future benefits. Public
32% .Gold & Silver
Provident fund is a voluntary Provident fund, anyone can participate in that system and which is
60%
maintained by S B I.
LIC
f). Life Insurance Corporation:
45% Bank
Today LIChasdifferent3,000products inmarket, whichare easily accessible. Today LIChas dominated Deposits
one of the best mveslment avenues for the retail investors as their future is concerned Therefore LIC 56%
purchased anyone with the aim of meeting future needs and commitments towards their life and
family. Findings distributed to retail investors, where 37 distributed to male
Data Analysis: • Total of 50 set of questionnaires were
respondents & 13 aboJa„ lypes. i„vcstment avenues based on their preference
Our study limited to only retail investors and questionnaire were distrib • Respondents have
uted randomly to the investors to
collect their opinion about the invest avenues which
are suitable for them. and return factor.
li182............... ■ ■«
183
^^M^^ty of the retail investors prefers investing on gold and silver followed by Bank deposits, Lie ASTUDY ON MERGERS AND ACQUISITIONS IN THE INDIAN SCENARIO
and postal savings schemes. Michelle Pinto ** Meghana Pallavi Salins ***Disha Puthran
. Majority of the retail investor's doesn't wan. to invest their funds in share market, because of price gnes Centre for Postgraduate Studies and Research,Mangaluru
volatility of share price and scared to invest or common belief of losing money,
Introduction
. Majority of the investors don’t want invest their funds in derivatives and warrants as because of lack
ofknowledge. Th malgam means to unite or to combine. Mergers and acquisitions help in restructuring of the
. The study reveals that only educated and business oriented personalities invest their funds in shares, company an it gives a new structure or it rebuilds or rearranges and such restructure thus implies in
rearranging the business for increased cffeciencies. Where merger leads to formation of new company,
bonds and debentures as they have got enough information about stock market.
acquisition leads to purchase of a company by other and no new company is formed. It helps to achieve
• Retail investors opt only traditional avenues rather than modem avenues as they are very close to strategic goals of the organisation or to sharpen the focus in achieving them. Globalization has spurred and
each other to invest on them. unprecedented surge in merger and acquisition activity worldwide. The essentials of the corporate
Suggestions restructuring are efficient and competitive business operations by increasing the market share, brand power
• Government and private agencies need to organise special workshop and awareness program to and synergies. It enhances economy (cost reduction) and improves efficiency (profitabi lity). When a company
enlighten the investors to invest on modem investable avenues. wants to grow or survive in a competitive environment, it needs to restructure itself and focus on its
• It is suggested that retail investors should not concentrate on return as return and risk are two faces of competitive advantage. The survival and the growth of the companies in this environment depends on their
a coin. ability to pool all their resources and put them to optimum use. A larger company resulting from merger or
small ones can achieve economies of scale. If the size is bigger, it enjoys a higher status. The status allows
• Retail investors always be a conservative investor and need to study all seasonal fluctuations happen
it to leverage the same to its own advantage by being to raise larger funds at lower costs. Reducing the cost
in the market as well as in the globe.
of capital translates into profits. Availability of funds allows enterprise to grow in all levels and thereby
• We need to educate, develop and increase investment percentage by way ofproviding continuous up become more and more competitive.
to date information to the investors.
India, in recent past has seen great potential in case of merger and acquisition deals. It is being played
Conclusion vigorously in many Indian sectors of the economy. Many Indian companies have been growing the inorganic
1. Investing in various types of assets is an interesting activity that attracts people from all walks of life way to gain access to new markets and many foreign companies are targeting Indian companies for their
irrespective of their occupation, economic status, education and family background. growth and expansion. The volume of mergers and acquisition deals has been trending upwards particularly
2. Investment cultivates a habit of savings and this savings helpful in future days. in the fields of pharmaceuticals, FMCQ finance, telecom, automotive, technology and metals. It has been
3. Investors should take proper precautions before investing in any avenues spreading far and wide through various verticals in all platforms in Indian scenario.
References: Statement Of The Problem:
Till the year 1988, the concept of Merger and Acquisition in India was not much popular. During that
• Pandian, P. (2010), ‘Security Analysis and Portfolio Management’Vikas Publishing House Pvt.
Ltd. New Delhi. period a very smal l percentage of businesses in the country used to come together, mostly into a friendly
acquisition with a negotiated deal. The key factor contributing to fewer companies involved in the merger
• www.investmentavenues.com
is the regulatory and prohibitory provisions of MRTP (Monopolistic and Restrictive Trade Practices) Act,
. Ranjith, VK. (2002), “Risk Preference of Investors in the City of Ahmadabad, Finance India, Vol. 1969 According to this Act, a company or a firm has to follow a pressurized and burdensome procedure to
16, Issue-2, pp. 531 -539. get approval for the merger and acquisitions. But in the recent decades, Merger and Acquisitions (M&A)
have been a very important market entty strategy as well as an expansion strategy.
The concept of mergers and acquisitions is vety much popular in the current scenario. Consolidation
through mergers and acquisitions is considered as one ofthe best ways of restructuring structure ofcorporate
' pp.^-illh^2999^ UA"a^S's ofInves*ment in IT Organizations", Southern Economist, units. M&A gives a new life to the existing companies.
Hyderabad and Secunderabad - A Study’"Asiw Joum^ MW°menthe twin C'tieS °f Objective Of The Study. strengths, operational synergy and efficient allocation of
pp. 223-243. anagetnent Research, Vol. 6, Issue 1, I. To evaluate the the Merger & Acquisition decisions.
managerial capa
II- 185
I
for International Markets
2. To analyse the main reasons as to why Companies LI-',' the strategy of Merger & Acquisitions as to . Hedging Country Risks: Me
whether the focus is on consolidation and economies of scale by expansion and diversion to exploit Indian markets and escape thTloca^Xesscycl^T a'S° a'tCmP'ed ‘° ^ relia"CC on the
extended domestic and foreign markets.
Recent trends of Mergers and Acquisitions in India
3. To examine how M & As improve corporate performance, to bring it at par with competitors by
adopting the radical changes brought about by information technology. 1. There arc various factors that facilitate mergers and acquisitions in India. Government policies,
resilience in
4. To know about the capital restructuring by appropriate mix of loan and equity funds to reduce the cost . . °"°Ty’ l,qu,d,ty in the corPorate sector, and vigorous attitudes of the Indian
smen are the key factors behind the fluctuating trends of mergers and acquisitions in India.
of servicing and improve return on capital employed that occurs due to M & A s.
TATA STEEL CORUS. Tata Steel is one of the biggest ever Indian’s steel company and the Corns is
Scope of the study: Europe s second largest steel company. In 2007, Tata Steel’s takeover European steel major Corns for
The post-world war period was regarded as an era of M&As. large number of M&As occurred in the price of $12.02 billion, making the Indian company, the world’s fifth-largest steel producer. Tata
industries like jute, cotton textiles, sugar, banking & insurance, electricity and tea plantation.However, Sponge iron, which was a low-cost steel producer in the fast developing region of the world and
after independence, during the initial years, very few corporations came together and when they did it Corns, which was a high-value product manufacturer in the region of the world demanding value
was a friendly negotiated deal. The reason behind less number of companies involved in mergers and products. The acquisition was intended to give Tata steel access to the European markets and to
acquisitions were due to the provisions of MRTP act, 1969 wherein such a firm had to follow a achieve potential synergies in the areas of manufacturing, procurement, R&D, logistics, and back
pressurized procedure to get approval for the same which acted as a deterrent. office operations.
Although this doesn’t mean that mergers and acquisitions in India were uncommon during this controlled 3. VODAFONE-HUTCHISON ESSAR: Vodafone India Ltd. is the second largest mobile network operator
system. In fact, there were cases where the government encouraged mergers to revive the sick units. in India by subscriber base, after Airtel. Hutchison Essar Ltd (HEL) was one of the leading mobile
Additionally, the creation of Life Insurance Corporation (LIC) and the early nineties saw M&A operators in India. In the year 2007, the world’s largest telecom company in terms of revenue, Vodafone
transactions led by Indian IT and pharmaceutical firms primarily to place themselves near to their made a major foray into the Indian telecom market by acquiring a 52 percent stake in Hutchison Essat
major clients in other developed economies and also break into new markets for expansion. In this Ltd, a deal with the Hong Kong based Hutchison Telecommunication International Ltd. Vodafone main
backdrop, Indian corporate enterprises undertook restructuring exercises primarily through M&A’s to motive in going in for the deal was its strategy of expanding into emerging and high growth markets
create a formidable presence and expand in their core areas of interest. Since then there has been no like India. Vodafone’s purchase of 52% stake in Hutch Essar for about $10 billion. Essar group still
looking back and India is being considered one of the top countries entering merger and acquisitions. holds 32% in the Joint venture.
However, the complications involved in the acquisition process has also increased caused by evolving 4 HINDALCO-NOVELIS: The HindalcoNovelis merger marks one ofthe biggest mergers in the aluminum
legal frameworks, funding concerns and competition norms which pose a constraint for the deal to be industry. Hindalco industries Ltd. is an aluminum manufacturing company and is a subsidiary of the
successful. This study covers the M & A’s of companies in India only. Aditya Birla Group and Novelis is the world leader in aluminum rolling, producing an estimated
19percent of the world’s flat-rolled aluminum products. The Hindalco Company entered into an
Research Methodology: agreement to acquire the Canadian company Novelis for $6 billion, making the combined entity the
a) Coverage: This study consists of secondary data done on mergers and acquisitions.
b) Data Collection: The study is mainly based on secondary data collected from industry experts, related wor Id’s largest rolled-aluminium Novelis operates as a subsidiary of Hindalco.
, p amr a yy DAIICHI SANKYO: Ranbaxy Laboratories Limited is an Indian multinational
articles and journals.
' pharmaceutical company that was incorporated in India in 1961 and Daiichi Sankyo is a global
Drivers of Merger and Acquisitions in India
. Right to entry: Acquisitions that take place abroad permit Indian companies to gain access to
developed markets across the globe. Laboradoriefud, the largest pharmaceutical company in India. Ranbaxy’s sale to Japan’s Daiichi at
. Technology transfer: This is one of the main advantages and drivers that urge companies to get
tnto M&A deals. Many times corporations require technologies to manufacture particular product
ora service which ,s not available India. In such situations by acquiring/collaborating companies
abroad they get access to the technologies. ^ of India. Imperial Energy r P enterprises operating in the territory ofTomsk region, including
Imperial Energy includes 5 indepen ^ ^ Ltd (0NGC) took control of ,mperiaI
. New Product Mix. Many times it is no, profitable for companies to manufacture products
2 oil and gas producing enterprises. ^ ^ price 0f $ 1.9 billion in early 2009. This acquisition
themselves either due to cos. constraints or requirement of huge investments. In such a scenario Energy UK Based firm operating in
alliance w„h another company can give them the right sell and diversify their product range was the second largest investment m adebyONGC in Russia.
186 ■■■■■■■a ■■■■■■■■■■ ■ ■■■■■■■■■■a 187

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7.
multinational automobile manufac,unnB corpomUon head - ^ a ired «, pcrccnt of
•:l,SiSOllkelycrereSted 'n Shazam’s au§mented reality technology, which could help improve
orrenngs. Shazam has visual recognition tech and a brands that could help in the development
consolidated Mahindra’s position in the global market. of a -type feature and improve its AR Kit efforts
Conclusion:
India is becoming a destination for M&A deals. This also means that it is now more vulnerable to the
impulses and uncertainties of the global economic scenario and the reasons could be the cash crunch,
currently the third largest copper producer in the United States ofAmerica. In the year 2009, Sterhte government etc. Considered to be the lifeblood of Indian business now, it needs the support and
Industries, a part of the Vedanta Group signed an agreement regarding the acquisition of copper mining constancy to ensure that it remains progressive in the coining years.
company Asarco for the price of $ 2.6 billion. The deal surpassed Tata’s $2.3 billion deal of acquiring
Land Rover and Jaguar. After the finalization of the deal Sterlite would become third largest copper India must concentrate upon refining the processes, increasing the simplicity in doing business abroad
mining company in the world. and the legalities involved in them. India has moved from an opaque to a very transparent system due
9. TATAMOTORS-JAGUAR LAND ROVER: Tata Motors Limited (TELCO), is an Indian multinational to the recent changes in the economy. We see that India and its businesses have been escalating never
automotive manufacturing company headquartered in Mumbai, India and a subsidiary of the Tata Group like before though the mergers and acquisitions in India and the system related to that are in the infant
and the Jaguar Land Rover Automotive PLC is a British multinational automotive company headquarters stage but this economy is huge enough to provide opportunities to foreign investments. The key to
in Whitley, Coventry, United Kingdom, and now a subsidiary of Indian automaker Tata Motors. Tata success keeping fundamentals in place i.e. to bring into line acquisitions to the entire business strategy,
Motors acquisition of luxury car maker Jaguar Land Rover was for the price of $2.3 billion. This plan and execute a vigorous integration process and take adequate awareness of all relevant regulatory
could probably the most ambitious deal after the Ranbaxy won. It certainly landed Tata Motors in a lot norms.
oftroubles. Reference:
10. SUZLON-REPOWER: Suzlon Energy Limited is a wind turbine supplier based in Pune, India and https://in. search.yahoo. com/search?fr = mcafee&type =
RePower systems SE (now Senvion SE) is a German wind turbine company founded in 2001, owned C211IN714D20170225&p=top+10+mergers+and+acquisition+in+lndia
by Centerbridge Partners. Wind Energy premier Suzlon Energy’s acquisition of RePower for $1.7 http://www.rroij.com/open-access/mergers-and-acquisitions-.php?aid=48021
billion. http://maheshchamarty.blogspot.in/2012/Oe/globalisation-and-its-impact-on-mergers.html
11. RIL-RPL MERGER: Reliance Industries Limited (RJL) is an Indian Conglomerate holding company
headquartered in Mumbai, India. Reliance is the most profitable company in India, the second-largest
publicly traded company in India by market capitalization. Reliance Petroleum Limited was set up by
Reliance Industries Limited (RIL), one ofIndia’s largest private sector companies based in Ahmedabad.
Currently, Reliance Industries taking over Reliance Petroleum Limited (RPL) for the price of 8500
crores or $1.6 billion.
12. Apple-Shazam: Apple Music is a music and video streaming service developed by Apple Inc. Users
select music to stream to their device on-demand, or they can listen to existing, curated playlists.
Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we
can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for
our users. The acquisition cost is far from the $1 billion Shazam was valued at during its last funding
round, but the company has had a hard time finding a viable business model pulling in only $54
million in revenue in 2016. Despite its low revenues. Shazam can help Apple in a number of ways.
TTie most obvious would be with Apple Music, where Shazam’s team could help improve the experience
of the service. If Apple ecides to shut down the app, i, would also take away referrals to Spo.ily,
whteh together wt.h Apple Muste gets 1 null™ clicks per day from Shazam. Also, Shazam’s music
II 188
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I
International Markets Redefining Strategies For International
Redefining Strategies For Markets
E-government is defined as a way for governments to
='===s“‘DTOEC0V“N““ use the most innovative information and communication
*Rakshitha Shetty ** Akshatha Kullal ***Rajath Kumar

* Lecturer ** Lecturer ***II year Mcom, provide greater opportunities to partieipate in democratic institutions and processes. This includes
Department of Studies in Commerce, i ansae ions c ween government and business, government and citizen, government and employee, and
Mangalore University Mangalagangotri, 574199 among d.fferent units and levels of government. E-business and e-commercc are subsets of c-govcrnment.
government presents a tremendous impetus to move forward in the 21st century with higher quality,
coste ective, government services and a better relationship between citizens and government. One of the
Th^waves of ^-government are rising through public organizations and public administration across the most important aspects of e-govemment is how it brings citizens and businesses closer to their governments..
world. More and more governments are using information and communication technology especially Internet Literature Review
or web-based network, to provide services between government agencies and citizens, businesses,
Means and Schneider (2000, p. 121) define e-govemment as the relationships between governments, their
employees. The explosion of digital connectivity, the significant improvements in communication and customers (businesses, other governments, and citizens), and their suppliers (again, businesses, other
information technologies and the enforced global competition are revolutionizing the way business is governments, and citizens) by the use of electronic means
performed and the way organizations compete. Anew, complex and rapidly changing economic order has
emerged based on disruptive innovation, discontinuities, abrupt and seditious change. The competitive Brown and Brudney (2001, p. 1) define e-govemment as the use of technology, especially Web-bascd
survival and ongoing sustenance of an organisation primarily depend on its ability to redefine and adopt applications to enhance access to and efficiently deliver government information and services. They
continuously goals, purposes and its way of doing things. These trends suggest that private and public categorize e-govemment efforts into three broad categories of Government-to-Govemment (G2G),
organizations have to reinvent themselves through ‘continuous non-linear innovation’ in order to sustain Govemment-to-Citizen (G2C), and Govemment-to-Business (G2B).
themselves and achieve strategic competitive advantage.The public sector has been sidelined because it
Tapscott and Caston (1993) argue that ICT causes a “paradigm shift” introducing “the age of network
tends to lag behind in the process of technology adoption and business reinvention. Only recently has the
intelligence”, reinventing businesses, governments and individuals. Paradigm shifts prevail in the public
public sector come to recognize the potential importance of ICT and e-business models as a means of
sector too.
improving the quality and responsiveness of the services they provide to their citizens, expanding the
reach and accessibility of their services and public infrastructure and allowing citizens to experience a Objectives of this study:
faster and more transparent form of access to government services. The initiatives of government agencies a) To identify and analyze the issues, opportunities and challenges of E-govemment and e business.
and departments to use ICT tools and applications, Internet and mobile devices to support good governance, b) To examine some E-govemment practices and to present a generally-applicable framework for analysis
strengthen existing relationships and build new partnerships within civil society, are known as eGovemment of challenges and problems in E-govemment development.
initiatives. As with e-business, eGovemment represents the introduction of a great wave oftechnological
innovation as well as government reinvention. It represents a tremendous impetus to move forward in the
Research Methodology:
This paper reviews the literature on the basis of secondary data collected from various sources such as
21st century with higher quality, cost effective government services and a better relationship between
articles, research papers, annual reports, sustainability reports.
citizens and government. Many government agencies in developed countries have taken progressive steps
toward the web and ICT use, adding coherence to all local activities on the Internet, widening local access Challenges for E-government and E-business: .......
and skills, opening up interactive services for local debates, and increasing the participation of citizens on In designing and implementing e-govemment sites,» government must cons,der elements ofpolicy, including
promotion and management of the territory . The potential for eGovemment in developing countries, regulatory issues, economic issues, and the rights of users.
however, remains largely unexploited, even though. ICT is believed to offer considerable potential for the
ral Accounting Office report specifically listed the challenges to implementing e-govemmen. as
sustainable development of eGovemment. Different human, organizational and technological factors issues U.S. Gene
and problems pertain in these countries, requiring focused studies and appropriate approaches ICT in
genera', is referred ,o as an “enabler” bu, on the other hand i, should also be regarded as a challenge and
a per, I ,n Use f. The organ,zauons, publ.c or pnvate, which ignore the potential value and use of ICT may
suffer P,vo.nl compel,five d.sadvantagea Nevertheless, some eGovemment initiatives have flourished in human capital concerns,
developing countries too, e.g. Brazil, India, Chile, etc. What the exneriPnr,> , additional broad challenges, such as defining the parameters of e-govemment
Other scholars have noted flict with other laws.
tha, governments in the developing world can effectively exploit and appropriate tebe^f ICT,tai ment function so that it does not con
eGovemment success entails the accommodation of certain unique cond't' and making e-govem~
ons, needs and obstacles.
li190....................... 191
International Markets 3ir3
an ICT infrastructure does not consist simply of telecommunications and computer equipment. E-
readiness and ICT lite
tcchmcal issues, but msieacJ were p y Qn the overau goais and functions of e-govemment, racy are also necessary in order for people to be able to use and benefit from E-
leaders, agency-centric thinking rather jn^r_relationships between e-govemment projects.Many g mment applications. Having the education, freedom and desire to access information is critical to
-government efficacy. Presumably, the higher the level of human development, the more likely citizens
.topresentsignificantchanengestoth^ wi e mc*'neclt0 accept and use E-govemment services. Example: In the Gyandoot project, the poor
The issues addressed by articles in this paper include. infrastructure facilities constituted one of the major problems encountered in developing and
implementing the project. Local rural telephones infrastructure did not operate with optical fiber
I) Ensuring ability to use required technologies- Quite simply, “electron,c governance reltes on the use
cable, and in consequence there were initially significant reliability problems. This caused a decrease
of infonnation (echnology."As the Wang, Kuk, and Gupta and Jana articles note, ifa person is unable
in the motivational level of kiosk managers to participate in the project. Substantial problems were
to use the technologies
_ that e-govemment relies upon, for lack of education or limited ability, that encountered with literacy and skills to use new technological tools and applications. To ensure the
person cannot be denied access to government information and services success and the sustainability of the project, the Indian telecommunications department undertook
2) Coordinating local, regional, and national e-government initiatives -As the Kuk article details, the actions to upgrade the level and quality of connections, as well as study alternative solutions (such as
lack of coordination between different levels of government can have a significant impact on the wireless applications) to cover those zones where telephones were not available. In addition some
basic training was provided to people who were directly engaged in management and maintenance of
success of e-govemment efforts. Kuk demonstrates that e-govemment initiatives can be further
complicated by conflicting goals for e-govemment between different levels of government. In order to kiosks Policy Issues Processing of E-govemment principles.
achieve effective e-govemance, the different levels of government in a nation must work in cooperation 6) Dealing with E-govemment means signing a contract or a digital agreement, which has to be protected
to develop and implement an e-govemment strategy. and recognized by a formalized law, which protect and secure these kinds of activities or processes. In
many developing countries, E-Business and E-Govemment laws are not yet available. Establishing
3) Addressing issues of language and communication- Many nations have more than one language spoken
protections and legal reforms will be needed to ensure, among other things, the privacy, security and
by the populace. Effective e-govemment requires standardization of spellings, word use, and a common
legal recognition of electronic interactions and electronic signatures. Hence, governments all over the
language or languages in which citizens are comfortable communicating.
world need to tackle the design and development of a public key infrastructure, which will guarantee
4) Preventing e-govemment from lessening responsibility of government officials. E-govemment creates secure transactions between organizations and individuals. Example: In the e-procurement system
ways in which government officials could use technology to avoid taking responsibility for their initiative in the Philippines, which aimed to streamline the purchase of goods and services for a large
duties. As anything available on an e-govemment site can be taken down or altered with little evidence number ofgovernment departments and agencies, a number of actions were undertaken to change the
that corrections were made, there may be a reduced effort to perform duties correctly. legal framework and to issue new rules and policies that govern and regulate electronic commerce and
interactions. An executive order was issued which provided legal guidelines about how to conduct
5) ICT infrastructure is recognised to be one of the main challenges for E-govemment. Internetworking is electronic business, and how to advertise and post bids or notices in the new electronic system. This
required to enable appropriate sharing of information and open up new channels for communication is a particular problem in developing countries, where the chronic lack of qualified staff and inadequate
and delivery of new services . For a transition to electronic government, an architecture, that is, a human resources training has been a problem for years (UNPA&ASPA, 2001). The availability of
guiding set of principles, models and 1. ICT infrastructure (e-readiness, computer literacy, appropriate skills is central for successful E-govemment implementation. E-govemment requires hybrid
telecommunication equipment) 2. Policy issues (legislation) 3. Human capital development and lifelong capacities- technological, commercial and management. Technical skills for installation,
human
learning (skills, capabilities, education, learning) 4. Change management (culture, resistance to change) designing and implementation of ICT infrastructure, as well as skills for using and managing
maintenance,
5. Partnership and collaboration (public/private partnership, community and network creation) 6.
online processes, functions and customers, are necessary.
Strategy (vision, mission) 7. Leadership role (motivate, involve, influence, supports needed. Many
developing countries suffer from the digital divide, and they are not able to deploy the appropriate ,
ICT infrastructure for E-govemment deployment. The digital divide between richer countries and to support its explosive grom ^ ^ telecommunication networks and equipment to
developing ones is large with high-income economies having 416 personal computers per 1 000 people Most countries will nee o However>the difficult question involves the sources of funding for
and low-income economies only 6 per 1,000 (World Bank, 2003). The development of basic take advantage of this new me iu 0f dollars. Capitalist countries like the United States
infrastructure to capture the advantages of new technologies and communications tools is essential for this massive project thatC0U ™ “ -ate corp0rations. This route is often problematic for countries
implementing E-govemment. Different access methods such ac , „ , . are handing over this responsi l ity^ ^ ^ ^ controlled the growth. For example, the Chinese
satellite receivers, kiosks, etc., need to be taken into consideration bv p 3CCeSS Y ^ °T P. °?ai| where governments
members of society can be served irrespective of their physical and ^nanc^T^pabi Ikies^Flowever, ment exerciseshave
tightalways
controle over Interne activities - including business ownership, foreign
govern
........ 193
II 192
I
F°r International Markets
capital influx, and Internet access. These controls govern the expansion of electronic trade in China. c) Preparing for long-term
In most countries in Asia, Africa and Latin America, neither private individuals nor corporations have programs for future
adequate capital to invest in these technologies and the government is slow to initiate any meaningful
effort due to bureaucratic procedures or lack of funds. Since global e business depends on the ’ up steadily thequ^'ificaUonsneceaary forf êaSiê^'*otpr0Jects. tailored to specific contexts. Build
electronically mediated connection of consumers and producers across the world, the absence of an
on the road. Agility and flexibility alre B° PrCparCd ‘° makc lht' requir“' Cha"SeS
adequate infrastructure is a major impediment to its growth.
8) The Technical Dimension: The technical considerations related to EC are related to security, reliability,
communication protocols, bandwidth availability, and integration with existing applications. As the
Internet evolves into a global information infrastructure, the issue of security becomes a major concern. universities, and support cross
Consumers are distrustful about the safety of the information they give out on the web. Recent incidents fertilization of ideas, solutions and knowledge.
indicate that relatively unsophisticated hackers can easily steal the information. Incidents such as the
one at CDUniverse, where a hacker sold credit card information he/she stole from the site after failing f) Invest in human development - the success of e-initiatives depends largely on human skills and
to get a ransom from the company, cause a drain in consumer confidence. Incidents such as these are capabilities. Accordingly, education and training initiatives must be considered as priority actions.
the reason for reduced consumer confidence in online transactions. Security and privacy issues are Staff need to be trained to handle new processes and activities; they have to be given incentives (not
major stumbling blocks for the growth of E Business. Consumers hesitate to disclose confidential data necessarily monetary) to prevent the brain drain of skilled people; and they need to feel part of the
such as home address, social security number, and their credit card number over the Internet. A significant organization by engaging in the decision making process.
percentage of the general public does not believe that conducting business on the Internet is safe (GVU g) Adopt a holistic and comprehensive approach, with clear vision and strategy to overcome the barriers
1 Oth User Survey, 1999). Privacy & American Business, an industry newsletter, contends that 61 % of and challenges for change. Integrate E-govemment with other development strategies and policies to
U.S. Internet users have at one time or another declined to buy something online because of privacy ensure a broad base diffusion. The active role of top leaders is crucial especially at the earliest stages,
concerns. to raise awareness, make ICT development a national priority, build and maintain wide commitment
Conclusions and Implications and involvement at public and private levels.
In the new economy, underpinned by revolutionary changes in science and technology, information and h) Prepare to manage knowledge and change - Establish knowledge management processes and tools to
knowledge has become a key factor in economic competitiveness. Developing countries must pursue a ensure storage, usage, easy retrieval ofstrategic information and knowledge for better and fast decision
more active role in the formulation of national policies and strategies to promote the information economy, making process, for further adaptation and development, for realizing the necessary improvements and
to reap huge benefits in terms of economic and social growth/development. E-govemment is believed to always search for better and innovative value added services and solutions.
play a fundamental role to this end. It does not only facilitate market-led initiatives but it also plays a
major role in initiating the process of capability building and in coordinating the actions of a large number References
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hindrances. But, despite the barriers and impediments they experienced, The Electronic Journal on
December 9,1999
Information Systems in Developing Countries, provided here show that developing countries should and
b) Dawes, S. S. (2008). Th e Evolution and Continuing Challenges of E-Govemance . Public Administration
could take advantages of the ICT revolution.
Review, 86-100.
a) E-readiness assessment permits stakeholders to understand the current state of telecommunication t in United States. Available at http://www.insidepolitics.org/
c) D.M. West, State and Federal E-govemmen
networks infrastructure, legal and regulatory framework, current level of human resources and skills egovtO 1 us.html, 2001
as well as the main impediments within a country’s borders. Based on the outcomes of this assessment, in the 21st Century, Upper Saddle River, NJ: Prentice Hall,
d) Gupta, U. Information Systems: Success
it is possible to produce strategies and action plans for building human resource capability legislative
2000. GVU Center, User Surveys
frameworks, institutional infrastructures, technological infrastructures and accessibility for all in a ics and Public Administration. Benchmarking Egovemment:
tailored and effective way. e) United Nations Division for Public Econom
of the UN Member States, 2001.
A Global Perspective - Assessing the Progress
b) Raising awareness among public and private organizations by Organising workshops, events seminars,
conferences with the objective of raising awareness about real opportunities benefits the ICTrevolution
■I
to bring in.
195
IF 194
i
DYNAMIC CAPABILITIES OF AN ENTREPRENEURSHIP IN THE PRESENT a business is risky, and even more so, when you are using your own money. Sometimes you can spread the
SCENARIO risk by convincing investors to come along on your new venture or by forming an entrepreneurial team but,
** Cassin Rodrigues ***Wilma Fernandes at the end of the day, you can’t avoid risk if you are going to start a new business and innovate.
*Michael L Santhumayor
‘Principal “Vice principal “‘Lecturer, Commerce department Concrete examples:
Milagres College, Mangaluru Eddie- He s an entrepreneur, Eddie recently graduated from college with a degree in computer programming
and has developed an app that he believes will make him a small fortune. So, instead of working nine to
Introduction five for a software company in Silicon Valley, he decides to start his own. He wants to challenge himself
The entrepreneur is an important input of economic development. He is a catalyst of development with him and work the way he wants to, without answering to a boss. He’s using a small inheritance to fund the start
we prosper, without him we are poor. The entrepreneur of the world are the wisest minds who leave an up. As an entrepreneur, Eddie is not only starting a business, but is risking his personal wealth to establish
indelible mark in the history of mankind they make it possible through words. They do things in a completely it.
new way. They think beyond the obvious. They go deeper they think from different prospective and angles. 1. Bill Gates, the founder of Microsoft.
In an increasingly competitive world, and with greater value created and delivered through intellectual
capital, an important pre-requisite of being a successful leader today is to have an exceptionally strong 2. Steve Jobs. Co- founder of apple computers, which produces macs, iPods and iPhone, as well as
intellect supported by vision, and a passion to add value through ‘thought’ leadership. Ability to spot, apple TV.
nurture and retain talent is another key skill for leaders of today and tomorrow. 3. Mark Zuckerberg, the founder of Facebook
With increasing uncertainty and faster pace of change, leaders must have an entrepreneurial streak in 4. Pierre Omidyear, founder of eBay
themselves even if working for large, diversified and publicly-held corporations. This would enable them 5. Arianna Huffington, founder of the Huffington post, a well - known online news site.
to spot trends and opportunities before others can and then act quickly using combination of sound business 6. Caterina Fake, co- founder of Flickr, which hosts images and videos on the internet.
techniques. With flattened hierarchies and a generally younger talent pool, especially in many of the new-
2. Entrepreneurs also need creativity: Think about Steve Jobs and Mark Zuckerberg; these two
economy sectors such as information technology, media, retail, telecom, financial services, biotechnology
entrepreneurs brought innovative products to the market that changed the way we live. Successful
and entertainment, today’s leader must have the capability to understand and communicate at all levels.
entrepreneurs innovate in one of two ways. They can bring an entirely new product or service to the
She or he must be able to blend in with the entire team rather than sick out like the proverbial sore thumb.
market, like the first cellular phone. On the other hand, they can radically improve upon something in a
Strong communication and interpersonal skill are, therefore important assets in the repertoire of the skill
set of successful leaders. dramatic way, just like the iPhone changed the world of smart phones.
The challenges of a more competitive operating environment require tougher leaders. A successful leader 3. Initiative: If you are not willing to start without being pushed, your new business will never get off
must be highly result oriented and performance driven, this means taking tough decisions, the leader must the ground. For example, Eddie had an idea fresh out of college and took the initiative to start his
not waver even though some of these tough decisions may entail personal regret or pain. This does not business venture. No one had to convince him to act; he just acted.
imply that the leaders, should not have compassion or a sense of empathy with their team. However, 4. Independence: independence is also a paramount attribute for entrepreneurs. Nobody holds an
compassion or empathy should not get mixed up with a tolerance of poor performance and fine balance entrepreneur’s hand, and they don’t want any hand-holding. Successful entrepreneurs must be willing
must be struck. to go it alone and succeed or fail on their own effort without relying much on the other people.
Meaning of an entrepreneur 5. Mental ability: it consists of intelligence and creative thinking. An entrepreneur must be reasonably
The entrepreneur is a person or individual who introduces something new in the economy, brings in overall intelligent, and should have creative thinking, must be able to engage in the analysis of various problems
change through innovation for the maximum social good. Human values remain sacred and inspire him to and situations in order to deal with them.
serve society. He has firm belief in social betterment and carries out this responsibility with conviction. In
this process, he accelerates personal, economic as well as human development. The entrepreneur is a 6. Communication ability: This ability pertains to communicate effectively. Good communication means
visionary and an integrated man with outstanding leadership qualities. He always works for the well that both the sender and receiver understand each other and are being understood.
being of the society.
7. Technical knowledge: an entrepreneur must have a reasonable level of technical knowledge. this is
Nature and Characteristics the one ability that most people are able to acquire if they try hard enough.
l.Entrepreneurs - Risk takers: A tolerance for risk-taking is a necessary attribute for entrepreneurs You
8. Motivator: an entrepreneur must build a team, keep it motivated and provide an environment for
can think of risk-taking as pursuing an activity even ifthere is a chance of a negative consequence. Starting
individual growth and career development.
196 i 197
Empowering entrepreneurship: In the new competitive environment, it is necessary to grow out of a
Importance of an entrepreneur
The entrepreneur is one of the most important inputs in the economic deve opmen o a coun ry or o mindset that thinks only of control. Organizations have to learn to treat their employees____ not as mere
regions with the country. Entrepreneurial competence makes all the difference in the rate of economic implemented ofdecisions, but as entrepreneurs. Thus intraprenurs who can all contribute to the growth of
growth. In India, small scale industrial sector and business are left completely private entrepreneurs. It is the company, but entrepreneurial freedom is more than just the decentralization or delegation of work.
the context that an increasingly important role has been assigned to the identification and promotion of Treating employees as entrepreneurs means both the ownership of work as w ell as opportunities for self
entrepreneurs for this sector. management. Not only does an entrepreneur have more freedom, he also has greater responsibility for
The need for a broad-based entrepreneurial class in India arises from the need to speed up the process of successful performance. Thus, to stimulate entrepreneurs, organizations must develop systems that combine
activating the factors of production. Leading to a higher rale of economic growth, dispersal of economic rewards for creativity and risk-taking with accountability for performance.
activities development of backward and tribal areas.Creation of employment opportunities, improvement
Treating support functions as profit centers which change for the services they render to the line function
in the standard of living of the weaker sections of the society and involvement of all sections of the society
has at least three advantages. First, it makes these functions more accountable for their performance.
in the process of growth. Second, since the line functions pay for their services, they will make more specific demands on them and,
Qualities of a successful entrepreneur lastly, it will stir entrepreneurial initiative, which is often dormant in support functi ons.
(b) Motivation towards achievement: - A successful entrepreneur should be a good administrator. Developing entrepreneurial competencies:
He should know the art of getting things done by other people without hurting their feelings or self-
Gaining firsthand knowledge about competencies: various competencies cannot be cultivated without
respect. clearly understanding their meaning, significance and relevance. An earnest attempt must be made to
(c) Creativity: - It consists intelligence, an analytical approach and creative things. An entrepreneur understand at length the various competencies which are required for the efficient performance of the
should have creative thinking and be able to engage in the analysis of various problems and situations assigned task.
in order to deal with them.
Competency recognition: an individual’s behavior or performance depends upon the competencies he
(d) Clarity: - An entrepreneur should have clear objective as to the exact nature of the business, the possesses. Therefore, in order to get desired behavior, we should be in a position to know as to what are
nature of the goods to be produced and the subsidiary activities to be undertaken. the competencies required in the individuals to perform in a particular manner.
(e) Self-confidence:- top performers are not cowed down by difficulties as they believe in their own Self-assessment: after getting clear cut idea about the competencies required for a particular type of
abilities and strengths. They have full faith on their knowledge, skill and competence and are not behavior, it is for the entrepreneur to see as to what extent he possesses these competencies and to what
worried about future uncertainties. extent he is employing these competencies for achieving the desired goal.
(f) Proper planning: - successful entrepreneurs take problem as a challenge and put in their best for Comparison of competencies: The next step to compare individual competencies with the competencies
finding out the most appropriate solution for the same. They will first of all understand the problem required for the desired performance.
and then evolve appropriate strategy for overcoming the problem.
Developing competencies and feedback: once it is realized that an individual does not possess a particular
(g) Persuasive: - A successful entrepreneur through his sound arguments and logical reasoning is in a competency required for a particular type of behavior, the next step will be to develop this competency.
position to convince others to do the works the way he wants them to do. It is not physical but Assistance from various behavioral scientists may be taken for devising out ways and means for developing
intellectual force he will use for convincing others. the required competency.
Entrepreneurial skills Motivation: if the entrepreneur is to succeed and build an effective organization to excel in global
To deal with entrepreneurial skills is to concern oneself with wide coverage of aspects of setting up an competitiveness he should be motivated as well as motivate the team.
enterprise and its management. It is not only confined to visualization, planning, setting- up and risk -
taking. The skills which an entrepreneur includes ability to deal with situations, organizations, social and The future
economic forces as they emerge from time to time.the entrepreneurial skills are- - In the 21s' century, the opportunities for growth, profits success and the pace of development is increasing
8. Group skills 9. Technical skills globally. And the ability to adapt to changes and willingness to adopt best practices will acquire new
10. Business management skills value. This could only be added by the growth of entrepreneurship and spread of entrepreneurial behavior.
11. Personal entrepreneurial skills
12. Enterprise skills 13. Behavioral skills It is imperative that the students/people to realize the importance of being able to think from an entrepreneurial
14. Communication skills 15. Listening skills perspective.
II 198 L 199
Entrepreneurship has been considered for long as a process primarily aimes at creating one’s own business ENTREPRENEURIAL CHALLENGES IN THE GLOBAL PERSPECTIVE
venture and contributing to economic development and employment generation. *Mv. Manjuta **Ms. Ashwitha Akshatha S.
Assistant Professors, Dept, of P.G Commerce, S.V.S College Bantwal
In recent times, globalization and IT have created fundamental changes in the way businesses have to
perform compete and grow. The resultant forces have greatly accelerated the interest of managers to
become entrepreneurial in an increasingly turbulent global environment. Organizations have to create Introduction:
entrepreneurial playing field that facilitates effective entrepreneurial behavior individually. Organizationally The entrepreneurial spirit has been described as the most significant development in recent economic
history. Heightened levels of entrepreneurial activities are being witnessed across the globe.
and socially. Entrepreneurship has an impact on the wellbeing of the economy as a whole. Entrepreneurial firms are
Thus, the entrepreneur has to attach top priority to the end product or service, while giving importance to reshaping the business ecosystem, creating an environment where they play a major role in introducing
man a gement, technology, and Hinds. Also value based product will stand the test of times in a competitive innovations, commercializing new technologies, creating new jobs, opening new markets and creating
value by combining resources in exciting new ways.
world in the future.
In India, there has been a significant change in the mindset of the sociely.Earlier, entrepreneurship used to
Conclusion be prevalent amongst some socio-ethnic groups and the majority of educated India used to prefer working
The rapid growth of entrepreneurs owes basically to rapid and diversified growth of enterprise. The main
for a salary. This mindset has undergone a change and many educated youth are turning their attention to
objective is to grow far faster than it is possible, to unleash the core strengths, its entrepreneurial spirit in emerging business opportunities.Entrepreneurial Indians today are not only making a mark in the world by
full force to face new global competition and to exploit huge new opportunity profitably. Apart from creating business empires, contributing in key positions in many multinationals but also by taking the
earning a livelihood and/or making profit, the entrepreneur is also motivated to fulfill his/her innate urge to defining steps of extending the reach of their own Indian enterprise across the shores. India has now
achieve success in life, improve his/her social recognition, to provide something to society. The motivational become an active participant in the global trend of cross-border acquisition. This can be seen as a clear
factor vary from place to place, time to time as well as entrepreneurs to entrepreneur. Entrepreneurship indication of India’s growth in terms of its corporate power and its desire to go global.
programmes globally continue to grow and gain academic legitimacy. The learning from entrepreneurship Entrepreneurship has gained greater significance at global level under changing economic scenario. In
courses is considered as valuable, the entrepreneurship development movement in India had received today’s hypercompetitive world with rapidly changing technology, it is essential for an entrepreneur to at
significant attention, this is borne out by the fact that the small manufacturing enterprises have made least consider entering a market outside the company’s national borders. Thus, identifying international
phenomenal progress during the last three decades today occupy an important position in the industrial market opportunities is becoming increasingly important for an entrepreneur to be successful in global
economy of India. level.
In this time of rapid economic development and technological change, entrepreneurial spirit can be unique Study Objectives
and important advantage, but only ifwe learn to use it. The entrepreneurs are the agents of change and our The study has been designed with the following objectives:
hope for the future. In fact, the entrepreneur always searches for change, responds to it and exploits it as an • To study the challenges, entrepreneurs encounter at the global level.
opportunity, the study of entrepreneurship and motivation is useful in developing a profile ofa successful • To identify the competency required by the entrepreneurs to tackle the challenges.
entrepreneur. It is indeed a positive approach in developing entrepreneurship and enterprise in country. • To suggest the measures for the growth of entrepreneurship at the global level.
The goal of entrepreneur is to build enterprise to earn profit and serve the society.
Research Methodology
Reference The research methodology used in this study is based on secondary data. The data has been collected from
Entrepreneurship at work, retrieved on September 25, 2013 from www.hrcouncil/ca-resource-centre/ few books, Websites and Journals.
home.cfm
Ambrosiana, V., and Bowman, C„ (2009). What are dynamic capabilities and are they a useful Entrepreneurial Challenges in the Global Scenario:
construct in strategic management. International JournalofManagement Reviews, While going global presents a wide variety of new environments and new ways of doing business, it is
Eesley, C.E. & Roberts, E.B. Cutting your teeth: Building on the micro-foundations for dynamic also accompanied by an entirely new set of wide ranging problems.
capabilities, Working paper, Stanford University
1. Protecting local culture:
https://www.sciencedirect.com/science/article/pii/S0024630117302868 There is always a huge conflict between people when something new is introduced, especially from a
https://www.enterpriseresearch.ac.uk/wp-content/uploads/2013/12/ERC-White-Paper-No 2-E- different country. If it challenges some of the long time truths believed by society, it is normally not
Leadership-finall .pdf
accepted very fast and in many cases strongly opposed by the masses.
http://ondememerschap.panteia.nl/pdf-ez/h200623.pdf
IH 200 201
2. Protecting local industry: b) Religion:
There is usually a strong representation from the industry to the government to d.sallow international Religion in a culture defines the ideas for life that are reflected in the values and attitudes of individuals
players to come into the market, because of competition and their own lack of preparedness. So, and the overall society. The impact of religion on entrepreneurship, consumption and business in
governments sometimes take decisions that do not allow foreign players to conduct business, because general will vary depending on the strength and impact of the dominant religious tenets on the values
they feel that the local industry players may be thrown out of their business. and attitudes of the culture.
3. Speed and time of change: c) Political philosophy:

This is a big challenge in terms of bringing in external ideas. Just bringing in ideas and forcing it on The political philosophy of an area also impacts its culture. The rules and regulations of a country
people may not work. The speed at which changes and global efforts; and the time at which they are significantly impact the entrepreneur and the way business is conducted.
taken, so that the opportune moment is used, should also be considered broadly. Otherwise globalization d) Education:
introduced without enough readiness of mind, market and industry would be a huge failure creating Both formal and informal education affects the culture and the way the culture is passed on. An
more setbacks than good. entrepreneur needs to be aware not only of the education level and the literacy rate of a culture, but
also the degree of emphasis on particular skill or career paths.
4. Stage of economic development:
In industrially developed nations, there are few regional variations in terms ofeconomic development. 8. Economics and economic philosophy:
The factors like fundamental infrastructure as roads, electricity, communication systems, banking The economic and economic philosophy ofthe country impacts its culture and the entrepreneur. Whether
facilities and systems, adequate educational system, a well-developed legal system and established the country overall is in favour of trade or trade restrictions, its attitudes towards balance of payments
business ethics and norms vary greatly in other countries, which impact a entrepreneur’s ability to and balance of trade, its convertible or non- convertible currency and its overall trading policy all
successfully engage in international business. affect not only the decision about whether it is advantageous to do business in a certain market, but
also the types and efficiency of any transactions occurring.Some countries use import duties, tariffs,
5. Language: subsidization of exports and other restrictions to protect the country’s own industry by having more
Sometimes one of the biggest problems for the entrepreneurs is finding a translator and having an exports that imports. It would be difficult to do business in a country that restricted the repatriation.
appropriate translation of the message. Significant problems can occur with careless translation. To
avoid such errors, care should be taken to hire a translator whose native tongue is the target language 9. Legal environment:
and whose expertise matches that of the original authors. A country’s legal environment can influence each element of the business strategy ofan entrepreneur. A
countries legal system composed of rules and laws that are used to regulate behavior as well as the
6. Technological environment: processes by which the laws are enforced, also impact the entrepreneur. The laws of a country regulate
Technology varies significantly across countries. The variations and availability of technology are the business practices in that country, the manner in which business transactions are executed and the
often surprising, particularly to an entrepreneur from a developing country. While firms in developed rights and obligations involved in any business transaction between parties. Some of the legal factors
countries produce mostly standardized, relatively uniform products that can be sorted to meet industry which effect the decisions of entrepreneur in global business are as follows.
standards, making it more difficult for developing countries to achieve a consistent level of quality.
a) Different tax structures adopted by countries affeetthe Pricing decisions made by the entrepreneurs.
7. Culture:
b) Advertising strategies are affected by variations in what can be said in the advertisement copy or
Probably the single most important problem confronting the entrepreneur occurs when crossing cultures.
in the support needed for advertising claims in different countries.
Culture is learned behavior and the identity of an individual and the society. Culture encompasses
wide variety of elements, including language, social structure, religion, political philosophy, educations, c) Product decisions are affected by legal requirements with respect to ingredients, packing and
a) Social structure: labeling.
Social structure and institutions are also aspects of the culture. The entrepreneur needs to recognize 10. Political environment: .
that these factors will impact the roles of the manager and subordinate and how the two relate In some There is some political risk in eveiy country, the range from country to country vanes significantly and
cultures, co operations between managers and subordinates is elicited through equality, while in other even in a country with a history of stability and consistency, these condraons could change. It is
cultures, the two groups are separated. important to assess each country’s policies and stability. There are three major types of pohtreal nsk
that might be present: Operating risk (risk of interference with the operations of the venture), transfer
202 203
country) and the biggest risk of all- • Competencies like self-confidence, problem solving skills, ability to recognize opportunities,
over the venture's property and employees). Conflict initiative, persistence, ability to influence others, communication skills are essential for an
and changes in the solvency of the country are major risks to an entrepreneur ,n a part.eular country. entrepreneur to win globally.
This can take such forms as civil disturbances and even terrorism where the entrepreneur s company Suggestions:
and employees are targets.
Based on the observation made the following suggestions are taken into consideration
Competencies Global Entrepreneurs Need • Before going global, it is important to take adequate care in planning out things meticulously.
Entrepreneurs must be able to identify opportunities, gather resources, and strike deals. They must also
• A good market research must be carried out to test the market for the particular product or service
possess soft skills like vision, leadership, and passion. To win globally, though, they must hone the following
that is proposed to be launched at global level.
competencies:
• Professionals with excellent past track record of success should invariably be associated as partners,
• Self Confidence: Self-confidence competency deals with not being afraid of the risks associated employees or even as consultants.
with business and relying on one’s capabilities to successfully manage the risks. • The process of growth of a business enterprise can be done by diversifying, entering into joint
• Opportunity Competency:Opportunily Competency relates to the ability to recognize opportunity, ventures, through acquisitions and mergers.
ability to capture opportunity, ability to identify customers need and so on. • Government should encourage global entrepreneurship by giving financial support like incentives,
• Relationship Competency: It possessesand uses good interpersonal and communication skills, subsidies etc.
ability to influence others and gain support. A key success factorforanentrepreneur has been found Conclusion:
by his or her capabilities to work with others such asemployees, business partners, family, friends,
customers and so forth. Entrepreneurship is not just about starting a business or remaining content with a particular level of
• Conceptual Competency:This sub competency relates to theentrepreneurial requirement for achievement. Businesses are considered to be successful only if they are successful in size, scale and
analytical competencywhen faced with addressing complex situations. Itdemonstrates the possession profits. In an entrepreneurial journey an entrepreneur faces many challenges and obstacles when he expands
ofcognitive ability anddecision-making skill, ability to weigh risks, thinkanalytically, be innovative, his business in the overseas market.Entrepreneur should have the competencies to tackle these challenges
and be creative, show reasoning, capacity to reduce risks. in the global level. There are enormous opportunities for entrepreneurs in global business but global trade
• Learning competency:Leaming competency is the ability of directingand utilizing their skills to requires astute planning, knowledge of how to “go international”.
be more successful inrecognizing and adapting to the changing roles ofentrepreneurs. Reference:
• Competency of Initiatives:Acting out ofchoice rather than compulsion, taking the lead rather than (n.d.). Retrieved from www.businessworld.in.
waiting for others to start. Initiating Action can be separated from most other competencies by (n.d.). Retrieved from www.entrepreneur.com.
keeping in mind that it focuses on thepropensity to act, not on the quality of the action. Birley, S. A. (2000). Entrepreneurial teams and venture growth, blackwell, oxford.
• Competency of Persistence:Persistence is related to the ‘never say die’ attitude, not giving up Danish A. Hashim, A. N. (May, 2017). Ease of doing business: Challenges and Way Forward. Yojana, 58-
easily, striving to achieve predeterminedbusiness goals even if in the time ofdifficulties. 64.
• Competency of Information: seekinglnformation seeking is one ofthe mostimportant entrepreneurial Holt, D. H. Entrepreneurship New Venture Creation. Dorling Kindersley Pvt Ltd.
characteristics which are relatedto the habit of searching for relevant and updated business oriented Robert D. Hisrich, M. J. Entrepreneurship. McGraw Hill Education(India)Pvt Ltd, New Delhi.
information continuously until successis achieved. Roy, R. Entrepreneurship Second Edition. Oxford University Press, New Delhi, India.
Shabudin Shenura, A. H. (2016). Prospects of Entrepreneurial Competencies of Micro and Small Enterprise.
Findings:
Global Journal of Management and Business Research. B .
• Culture, language, religion and social structure are the basic factors which has an impact on the Shankar, R. Entrepreneurship theory and practice. Vijay Nicole imprints pvt Ltd.
international business.
• Legal and political structure of various countries may prove to be a barrier for entrepreneurs to
enter into the overseas market.
• slage ofeconomic development, balance 0fpayment, type ofgovernance system
and technological environment make decisions regarding international
entrepreneurship more complex.
204 V 205
I
Benefits:
CLOUD COMPUTING- ISSUES AND CHALLENGES • The company the save cost and hence can reduce the IT expenses.
*Mr. Nelson Marwin Fernandes
Assistant Professor Department of P.G Commerce SVS College, Bantwal • Payment can be made when it is used. The customer company gets the benefits of‘pay as you use’
option.
Introduction: • This provides the benefit of unlimited storage and hence the company no need to worry about
The updates in Information Technology requires the advanced and fastest way that supports delivery of running out of storage space.
computing sendees at lower cost. Network bandwidth and hardware technology are developing at a faster ® The cloud computing allows the user company to use extra resources as and when required and
rate, resulting in the rapid development ofthe Internet connectivity system. The improved internet connections hence this is flexible in nature.
provide the benefit of quicker services, which definitely saves the time to a greater extent. The objective • Back-up and recovery options. Since all the data stored in the cloud the back-up and recovery is
of many companies is to provide the services at the earliest and also to access the information without any much easier when compared to storing in the physical devices.
delays. To achieve this objective,the companies, need to find some superior ways, which saves the time as
• Access from anywhere: all the stored information can be accessed anywhere using proper internet
well as cheaper.Cloud computing is one of the best method which provides easy and quick information.It’s
connection with access rights.
an Internet-based development in which variable and virtual resources are provided as a service over the
Internet. This has become a significant issue in the present economy. For the purpose of achieving speed 0 Mobile accessible: as the number of smartphone users are increased and the cheaper internet cost,
and accuracy cloud computing has become mandatory for every company. resulted in access the information from anywhere.
• Cloud computing service is maintained by the cloud service provider and not by the individual
Cloud computing involvesrecording andfmding information over the Internet instead of computer’s cloud customer.
hard drive. It is a type of computing that depends on sharing computingresources instead of having local
servers or personal devices to handle applications. Issues and Challenges:
In cloud computing the word ‘Cloud’ is used as representative of the word ‘Internet’. So cloud computing e Technical issues: because of malfunction or dysfunction of technology some of the information may
can be called as a type of computer based computing. In this case computer, internet, servers and so on, not be available and access to required information may not possible. The important fact is that the
plays a vital role in providing the service. The required information is delivered through the Internet to the technology always faces one or other type of problems. Even the Cloud Service Providers (CSP)
organization. The cloud computing service or its infrastructure is maintained by the cloud provider and not face some problems despite of maintaining high degree of standards. The consumers are also need
by the individual customer. to have very good internet connection to be logged onto the server all the time or else the consumers
may invariable stuck while working and it can lead many problems.
Cloud computing is no doubt an effective method in the present economy where we can find information at
one place with the help of Internet, but this also involves some loopholes which is a matter ofconcern. The • Security Issues: the data or information stored in the cloud involves a major risk factor. Before
organization must find the better ways to manage this cloud computing effectively and efficiently. using this service, the consumer must know that they are surrendering all the organizations information
to a third party that is CSP, this could be great risk. Therefore, it is the responsibility of the
Objective of the study:
consumer to choose most reliable cloud servile provider, who will keep all the information totally
• To understand the concept of Cloud Computing.
safe and secure. There are various data security techniques are available which can be used to
• To know the benefits of Cloud Computing to individuals and organizations. secure the data like encryption techniques, firewall, data access list and so on.
• To know the issues and challenges faced by the organizations while using Cloud Computing service.
• Hacking: storing the information or data in the cloud can face a major problem of external hacking
Methodology: and other threats. As we aware about the fact that nothing is safe and secure on the Internet, there is
Methodology is an easy and simple way to systematically find the solution to the problem In it we study always the possibility of misusing the information or stealing the information.
the vartous steps that are generally the problems and along with logic behind them. Present study is
completely based on the Secondaty data. In the present study some information is collected from the • Security and Privacy: cloud computing is based on virtual computing technology where data is
various websites, newspapers and books of various titles. scattered in various virtual data centers rather stay in one physical location. Sometimes information
may be spread across the borders as well and because of this the data protection privacy will face
Limitations: the controversy of different legal systems of the world. Hackers may then use this information for
• The use of secondary data.
• The time factor. some harmful purposes.
II 206 207
. Chances of copy: there is a greater possibility that the internal staff may copy the data from the issues and challenges like technological issues, security and privacy, reliability, hacking the cloud,
cloud, if proper security measures are not provided by the Cloud Service Provider. standardization of service and so on. In the present digital economy. Cloud computing has the potential to
become a leader in promoting a secure, virtual and economically viable IT solution in the future.
. Updates: the business world requires the changes the cloud system as well. User requirements
increases regarding the interface, network, storage and so on, so it’s the responsibility of the cloud References:
serv ice provider to cope up with these changes and adapt to those conditions. 1. Venkatesh. P, Cloud Computing Security Issues and Challenges, International Journal of Computer
Science and Information Technology Research, Vol. 2, Issue 3, pp: (122-128), Month: July - September
• Location of the data centers: the consumers buy the cloud plans which is offered by the resellers or 2014.
distributors without knowing the location of the data centers. Many a time the information regarding
the data collocation may not be passed by cloud service provider to the next level, which leads to 2. Kelkar Sandeep, - Challenges and opportunities with cloud computing , International Journal of
the denial of services to the customer. Usually all the data is stored in Cloud Service Providers Innovative Research in Computer and Communication Engineering, Vol.2, Issue 4, April 2015.
infrastructure, the customer always gets worried and do not get the uptime of the services. In some 3. Prof. DivyakantMeva, Dr. C. K. Kumbharana; Issues and Challenges of Security in Cloud Computing
cases, the Cloud Service Provider might have outsourced the data centers to the third parties. Environment; International Journal ofAdvanced Networking Applications (IJANA) ISSNNo.: 0975-
• Compliance: many countries have different kinds of regulations regarding the various aspects of 0290.
the cloud computing system. Many of the consumer organizations requires the reporting, audit and 4. https://www.wikipedia.org.in/issues and challenges in cloud computing.
other details, so cloud service providers must enable them to followor comply with these regulations.
And also the cloud services providers need comply with regulations as well. 5. Srinivasan S. - Cloud Computing Basics, Springer New York 2014.
• Reliability: the cloud computing is not always reliable. The servers in the cloud can also face
downtime or slowdowns. The major difference in this cloud computing model is that the users
have higher dependency over the cloud service provider because once you select a particular
service provider, you are locked-in and you may possess a secure business risk.
• Willingness to cloud: many ofthe organizations may face problem of storing the information on the
cloud. They may hesitate as they are stick on to the traditional practices and the risk factor involved
in cloud computing or slow internet connectivity and so on.
• Standardization: most of the organizations may have their own policies, procedures or guidelines
which is not possible in cloud computing technique. Even these organizations may also want their
vendors to follow these guidelines. Sometimes the vendors may be unwilling to follow this, and
thus creates the conflicts between both the parties. Hence both the parties need to follow the same
procedures for the smooth conduct of the trade between them.
• Service Level Agreements: As we know that the cloud consumers do not have the control over the
information stored on the cloud. Therefore, it is the responsibility of the consumers to ensure
quality, reliability and performance of the cloud service provider. For this purpose, the cloud
service provider need to provide the guarantee about service provided by him. This is done through
service level agreement between cloud consumers and cloud service provider, which is negotiable.
Conclusion:
As there is alwaysrisk involved while using the technology, cloud computing also not an exception to it,
because it completely depends on proper internet connectivity. As we are witnessing vigorous changes in
technology, it is much important to understand and apply it. Ifwe fail to understand it may cause serious
damages like loss of personal and official information, leak of business secrets and so on To adopt cloud
computing in an organization effectively and efficiently, cloud consumer and service provider must consider
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OVERVIEW ON ASEAN INDIA RELATION - IMPACT ON INDIAN ECONOMY regional grouping in East Asia, and institutions such as ASEAN Defense Ministers Meeting Plus (ADMH+),
*Aswini T **Amith S M Extended ASEAN Maritime Forum (EAMF) and affiliated institutions have promoted dialogue and
**Lecturcr, Sociology cooperation among regional stakeholders.
*Lecturer, MA Economics
Alvas College Moodbidri Besant Women’s College Mangalore
India s approach to South East Asia could be studied from historical, religious and economic perspectives.
The significance of historical perspective dates back to the Bandung Conference -Asian African Conference
Introduction held in 1955, and the role played by the Asian Leaders in creating new camaraderie between the newly
The Association of Southeast Asian Nation -ASEAN is an association of nations dedicated to economic independent nations of Southern Asia. Indian leadership recognized and promoted the independence of
and political cooperation in Southeast Asia Countries. South East Asian Countries, namely Myanmar, Indonesia, Philippines from colonial subjugation.
The association of South East African Nations-ASEAN was formed by Indonesia, Malaysia, Philippines, Political and academic references regarding India’s view towards South East Asia were shaped by the
Singapore and Thailand. With the ASEAN declaration also called as Bangkok Declaration on 8 August impact of the Indie civilization and the symbiosis of the religious dialogue in the larger Asian context. The
1967, political and economic cooperation developed. This declaration of 1967, considered as the ASEAN’S influence of Hinduism and Buddhism was felt far and wide and the remnants of the religious influence
founding document, formalized the principle of peace and cooperation to which the ASEAN is dedicated. could be witnessed in the form of architecture in ancient temples, monasteries and religious artifacts. The
It came into force on 15 December 2008 and ASEAN established its identity as international organization historical narrative merged into the socio-cultural milieu and was interspersed with religious discourse
and took a major step in its community building process. The ASEAN community comprises ofthe pillars: within societies. This formed the bedrock of India- South East Asia relations.
the political security community, economic community and socio-cultural community.
India’s impression about the South East Asian economies grew because of the World Bank report of 1988,
Aims and Purposes which showcased the perfect example of export oriented industrialization, which somehow undermined
The aims and purposes of ASEAN Declaration are: To accelerate the economic growth, social progress the model of import substitution which India had been following since its independence. Nehru’s vision of
and cultural development in the region through joint endeavors in the spirit of equality and partnership in controlling the commanding heights of the economy through socialist welfare model had created a debt
order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations. trap and also limited the options for domestic growth.
Fundamental Principles The economic implications of the Look East policy have been substantive. The direction of India’s trade
In their relations with one another, the ASEAN Member States have adopted the following fundamental with the rest of the world has undergone phenomenal changes because of the policy. India’s trade with its
principles, as contained in the Treaty ofAmity and Cooperation in Southeast Asia (TAC) of 1976: eastern neighborhood was distinctly limited during the Cold War period. Among the countries ofASEAN,
• Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity its economic exchanges were confined mostly to Malaysia, Indonesia, Singapore and Thailand. Trade with
of all nations other major East Asian economies such as China, Hong Kong and South Korea were noticeably limited.
• The right of every State to lead its national existence free from external interference, subversion or India’s economic reform which has produced its recent spurt in growth began only in the early 1990’s a
coercion decade or more after China’s. To date, these reforms have been neither comprehensive nor complete, and
• Non-interference in the internal affairs of one another have been hampered by the contestation inherent in India’s democratic politics, the complexity of its
• Settlement of differences or disputes by peaceful manner federal system, the lack of elite consensus on critical policy issues and the persistence of important rent-
• Renunciation of the threat or use of force seeking entities within the national polity. Yet, the Indian economy has grown at about 6-7% annually
• Effective cooperation among themselves. during the first decade of the 21“ century. As a result, the Indian economy, when measured by purchasing
Indian Asean Relation power parity methods, was in fourth place globally with a GDP of approximately $4 trillion in 2010. At
present it’s placed at third position in terms of purchasing power parity.
Diplomacy has been utilized for maintaining international peace and order as an alternative to military
means . Similarly, protecting national interests through carefully calibrating statecraft depending on the The two way merchandise trade between India and ASEAN witnessed a significant leap from paltry $7
prevailing situation is another dimension of it. Regional organizations such as ASEAN provide the platform billion in 2000-01 to $57 billion in 2010-2011, representing an impressive eight fold increase in span of
to deliberate on regional issues and provide consensus solutions. Over the years, ASEAN has evolved as 10 years. India- ASEAN trade and investment relations have been growing steadily, with ASEAN being
a multilateral process which has benefited its member countries because of regular dialogue and economic India’s fourth largest trading partner. The annual trade between India and ASEAN stood at approximately
integration leading to an incremental reduction in the threat perception and building of the ASEAN community US$76.53 billion in 2014-15. It declined to US$ 65.04 billion in 2015-16 essentially due to declining
into political, security, cultural and economic domains. ASEAN has slowly transformed itself into a core commodity prices amidst a general slowing down of the global economy. Investment flows are also
substantial both ways, with ASEAN accounting for approximately 12.5% of flows to India since 2000.
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FD1 inflows to India from ASEAN between April 2000 to May 2016 was about US$ 49.40 billion, while ASEAN- Regional Comprehensive Economic Partnership (RCEP) was seen as an initiative which was
FDI outflows from India to ASEAN countries from April 2007 to March 2015 as per data maintained by meant to integrate the regional economies into one overreaching framework. However India with its limited
Department of Economic Affairs, was about US$ 38.672 billion. The ASEAN- India Free Trade Area has manufacturing and export potential has been stressing on opening the services sector. India, while opening
been completed with the entering into force of ASEAN- Indian Agreements on Trade in Service and up its markets for a number of ASEAN economies had failed to get reciprocal market access for its
Investments on 1 July 2015. The main items of India’s exports to ASEAN are agricultural products, chemical services sector. This was reflected during the free trade negotiations with ASEAN. The then Commerce
and related products, engineering goods, textiles and readymade garments, while India imports food and Secretary had announced that India would only enter into the Comprehensive Economic Cooperation
related items, raw materials and intermediates and manufacturing goods. Agreement and Comprehensive Economic Partnership Agreement negotiations in future to get market access
to its services exports. The same sentiment resonated when Nirmala Sitharaman, said that India needed to
India’s desire to engage with ASEAN also has strategic considerations. Particularly since the early 2000s, review the Free Trade Agreements with various countries as these had not been very beneficial for India’s
India has been concerned that, ifthe WTO trade negotiations failed, it would be left alone to face growing exports of manufactured goods and limited market access to service exports. The India-China Free Trade
protectionism in Europe and North America. The China rivalry factor- a sense of rivalry felt by India Agreement is also now subject to this same sentiment as China has its reservations regarding opening its
towards China and its successful push for closer economic ties with South East Asia initially figured service sectors to India. However, the outlook towards trade and investment with ASEAN is more positive.
prominently in India’s push towards ASEAN. India was compelled to counter China’s push into the rest of Ms Preeti Saran stated, “India and ASEAN share deep economic ties. ASEAN is India’s fourth largest
Asia with moves of its own. The Bay of Bengal Initiative for Multi Sectoral Technical and Economic trading partner, accounting for 10.2% of India’s total trade. India is ASEAN’s seventh largest trading
Cooperation and Mekong- Ganga Cooperation for instance, are regional cooperation agreements supported partner. Investment flows are also robust both ways, with Singapore being the principal hub for both
by India. Part of their initial purpose was not only to exclude China’s participation, but also to counter its inward and outward investment. The ASEAN- India Free Trade Area in goods, services and investment
lead in the Greater Mekong Sub region program. has been in place since July 2015. Deeper economic integration with the dynamic ASEAN region is
India’s Look East Policy was previously meant for economic engagement as well as political participation therefore an important aspect. The ASEAN- India Trade Negotiating Committee met for the first time in
in South East Asia. The initiatives that have been taken after the year 2000 in North Eastern India are worth April 2016, to take stock of a host of issues which have been identified for revival of India- ASEAN trade.
mentioning. With the so called Look East Policy, which is a term defined by a liberalized foreign policy Together these will facilitate a qualitative shift in our trade and investment relationship.
towards South East Asian countries. The policy launched in 1992 was mainly strategic in nature as they The cultural element in the bilateral engagement is one where India has fared much better, in comparison
were thinking of opening the Eastern corridor not for the development of India’s North East region, but for
with the business and trade sectors. India has opened India centers, the Rabindranath Tagore Center and
the country’s overall interest towards the Asian countries. As Bhagat Oinam states” instead of sea route it
cultural centers to publicize ancient links. Restoration of temples such as Angkor Wat by India’s
is better to open the land road” since the NER provides a viable land route, as an alternative to maritime
Archaeological Survey of India has also given a new dynamism to India- ASEAN ties. The increasing
connectivity, it is through NER that trade would flow, hence making development of the NER necessary for
number of flights as well as India’s easy visa policy has facilitated two way movements of tourists.
the sake of India’s increasing outreach to South East Asia. Thus, the North East integration with ASEAN
region was seen as an important agenda to fulfill domestic objectives and promote connectivity with South India has been actively involved in addressing non-traditional security threats and also undertaking mission
East Asia. As a result the development of the NER is critically important for the Indian Government’s oriented tasks as well as exercises as envisioned under the ASEAN Community Vision 2025 on Disaster
economic and geo political ambitions. Management. The ASEAN Ministerial and EAS Conference on Disaster Risk Reduction, was hosted in
New Delhi on November 2016. This was on the sidelines of the Asian Ministerial Conference. This is
With economic liberalization and ensuing Act East Policy, foreign investment was also attracted to the
expected to be the common minimum agenda for cooperation between India and ASEAN in the years to
NER, adding to the premise that the problems in the NER are arising as the regions are lagging behind.
Thus foreign investment tended to be seen as a solution for the development of N ER. come.
In 2004, Prime Minster Dr Manmohan Singh referred to Assam as the “Gate to the East". This endorsed Connectivity has been the core agenda in most of the India-ASEAN meetings and also during the seven
Delhi Dialogues. However there has been a perceptible decline in the participation and representation
more prominently the role of the Northeast as an important segment of India’s Look East Policy The India
ASEAN car rally was flagged off from Guwahati the same year and this showcased the importance of from ASEAN countries owing to the lack of forward movement and the stymied progress in terms of
enhancing phys.cal connectivity between the two regions. Within four years India’s NE states economic connectivity, investment and trade. In the last few years 2015-2016 the agenda has become more of regional
potential was embedded mto cultural and geographical continuities. Joint ventures and partnerships have security and business oriented, addressing cooperation throughjoint ventures and small and medium sized
been looked mto by Ind.a's ne.ghbors and this created fruitful synergies. The economic convergence can enterprises and highlighting core regional security issues.
facilitate the inter-dependency and promote economic growth between India. China and South East Asia. India-ASEAN Plan of Actions, 2003, agenda of shared prosperity and development had dominated the
work plan to enhance cooperation and collaboration between the two sides. India’s approach to promote
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ASEAN are considered to be the priority sectors, in which liberalization should have been achieved by
conneactivity with ASEAN in terms of physical connectivity through highways and maritime connectivity
were relatively slow from 2003-2015 as India could not complete the trilateral highway project (India, 2010, while the other sectors would be liberalized by 2020. The two ways in which India could seek entry
Myanmar Thailand). This could be attributed to the lack of financial resources and problems in getting a into the services markets of ASEAN is either by taking advantage of the AFAS, which would requir e a
coordinated response from both the Myanmar and Thailand governments. The declaration of the third formal agreement on services with ASEAN. Or through bilateral negotiations with individual ASEAN
edition ofthelndia-ASEAN plan of action 2016-2020 at the ASEAN summit meeting by Prime Minister countries, India must formalize its links with ASEAN to encourage trade in services because of the huge
Modi, reiterated that out of 130 activities listed, India had implemented 54 listed objectives. potential that exists.
For India both physical and digital connectivity as well as enhancing science and technology cooperation The two driving factors for the growth for trade in services are, firstly services play an increasingly
has been the core areas ofcollaboration with ASEAN nations. India’s strategic partnership with the institution significant role in international trade, and secondly, India’s economy is significantly based on services.
also lays stress on economic, cultural and institutional collaboration at all levels. Since the formation of Thus one can expect India to be an important exporter of services to ASEAN, as the more developed
ASEAN and in the last two and half decades of India’s institutional participation in the ASEAN process, economies will be a source of demand for the services sector in India.
dividends in the form of investment, trade and identified core areas of cooperation between business
communities, societies and people have been realized. Whenever there has been an absence of an agreed Economic contribution by sectors
business, trade or investment agenda, then culture, Diaspora, films, archaeology, religion and arts have
resonated in the discussions and provided a stable platform for future discussions. Ever since the launch of
the Look East Policy and its subsequent avatar as Act East Policy, the Indian ASEAN relationship has Agriculture
formed the core of this policy. Services
Indian Asean Relation: Impact On India

Since the early 1990’s the economic relationship between India and ASEAN has improved significantly. In ’6
1992, India was admitted as a sectoral dialogue member of ASEAN and was granted the status of full
dialogue partner in December 1995. After India was granted the membership of Asian Regional Forum
(ARE), India was invited to be a member of the East Asian Summit in 2005. The ties between the two Among the WTO members, India is placed eleventh with regard to its share in world commercial services
entities have progressed substantively, providing a strong baseline for cooperation in various fields. and ranks among the top export countries in financial services, telecommunications and information services
and construction as well as the cultural, personal and recreational services. Many developed countries
The Look East Policy adopted by India in 1991, along with liberalization and economic reforms, has
have outsourced services, such as customer phone services or call centers to India; ASEAN states have not
turned to be effective with regard to trade flow in goods and also in the trade of services. AIFTA came into
followed these trends yet. It could be due to the stage of development of specific ASEAN economies. The
being with greater bilateral trade in the year 2010. The FTA covered only the trade in goods between the
less developed among them might not be in a position to have the demand for the services produced in
two parties with the prospect of liberalizing regulations on more than 90% of traded goods. It had been
India. Their stage of development may not have matured sufficiently to embrace the outsourcing strategy.
said that tariffs on 4000 products would be eliminated by 2016 and tariffs on products like palm oil, coffee
and tea would not be reduced until 2018. India would reduce the tariffs on crude palm oil by 37.5% and on India’s age structure favors development for variable fields in the service sector. In contrast to the other
refined palm oil by 45%, and concessions on sensitive products would be granted for a period of ten major Asian nations, India’s working population would be increasing rather than decreasing for another 30
years. The FTA would contribute towards the reduction of India’s accumulated trade deficit with ASEAN. years. This would lead to an increasing demand of services in ASEAN and India will prove to be a good
Trade in Services between India and ASEAN partner to overcome this shortage.
Countries like Hong Kong and Singapore are among the top export destinations for India. India accounts
Population Growth
for just 3% ofASEAN’s share of international trade. In the year 2009, ASEAN accounted for 9% of India’s
total imports and 11% of total exports. However, there could be growth in demand for ASEAN goods as
there seems to be a rise in India’s domestic demand, favorable demographics and rising domestic investments.
The recently signed FTA on goods would certainly boost trade between ASEAN and India
ASEAN members having signed the ASEAN Framework Agreement on Services- AFAS have made the
commitments in the field of tourism, air-transport, business, construction, healthcare, information and
communication technology, and telecommunication services. Of these, healthcare, tourism, travel and e-
I in 8 e i * I I ! I is S 8 » s * *
II’.......................................... 1, 215
As an effort to improve the tourist’s inflow, India has opened up air travel for ASEAN carriers and granted
those 21 direct connections as well as unlimited landing clearance in four metropolitan cities during peak
travel months. These changes were important as airfares between India and ASEAN were among the
highest on a per air-mile basis and a higher competition of these routes would lower passenger’s costs
considerably and thus raise India’s attractiveness as a travel destination..
Country wise Shares in Tourist Arrivals to India from Southeast Asia, 2008
I t I e i i i i i i t s s i a a a i * * j
Although the demographic outlook for India seems to be very promising, its labor supply has to be planned
and managed prudently. Though India has one of the largest labor markets in the world, India’s Ministry of
Labor has warned that employment has to rise by at least 2.5% per annum in order to match the growing
labor force. Greater flexibility with regard to skilled labor would help ASEAN economies to upgrade
their production processes and move on.
India could be a support for ASEAN countries in agricultural research and biotechnology as relying on Employment in Services
traditional food production would leave several states with severe food supply shortages. However the *0
benefits from cooperation in food related issues will not be one sided as some ASEAN countries have 70
attained expertise in fields such as deep-sea fishing, (Thailand) and palm oil production (Indonesia and 60
Malaysia). In latter, India is heavily dependent on palm oil for consumption purposes. The two parties
could also benefit from mutual cooperation in research and development to engage in more value added
production activities.
t* 50
I-
< JO
T
20
India s potential as a tourist destination seems to be severely underutilized. The target of visitors from 10
ASEAN to India had been set to one million in 2010, as the number had only been 332,925 in the year
Indonesia Malaysia Philippines Singapore Thailand
2008. According to Sen, Asher and Ramkishen, India has been neglected as a travel destination for ASEAN
0200$ °2006 “2007
citizens due to the lack of an integrated approach that which makes visiting India’s vast geography and its
diverse culture quite difficult. It had been suggested that simplifications in the visa system could contribute As income rise, household consumption would also be boosted, and thus Indian economy would face an
to the growth of the tourist industry. As India is highly interested in promoting development in rural areas, upswing accompanied by more investment and consumption that in turn will spur even more demand. As
tourism could act as a suitable catalyst to direct investment in these areas.
poverty decreases, the unemployment rate and inequality will increase, due to the fact that most service
Tourists into ASEAN by Country of Origin exporters are situated in metropolitan areas. Within the urban areas, inequality would rise as service
exporters would gain large profits and pay higher wages while other enterprises might not be able to
follow the same trend. Regional disparities have increased over the past several years and if India and
ASEAN enhance their cooperation in services these disparities would increase further. The Indian
v*./r- government should consider measures to strengthen the investment in rural areas in order to avoid the
disparities from becoming too large. Additional education and advanced vocational training programs
would help to prepare workers for the possible challenges.
India Asean Trade Trends

India ASEAN trade has grown at an average annual rate of 19% during 2004-2014 with a fall in 2009 due
to the global financial crisis, and has stagnated post 2011. The current trade volume, as observed.m Fig. 1
216 217
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*
is around US$75 billion. The bilateral trade between India and ASEAN was expected to touch US$100 The ASEAN Economic Community would transform ASEAN into a region with free movement ofgoods,
billion by 2015 and according to a Standard Charted Bank Report; it should touch US$280 billion by services, investment, skilled labor and capital. The free mobility of labor within the AEC may hamper
2024-25. The widening trade deficit post FTA is also a concern for India and is a result of import tariff India s prospects in terms of mobility of skilled workers, which had been implemented with the India
reductions by India. ASEAN Services agreement. ASEAN imports services to the tune of US$300 billion. Trade in services
like information technology, business services and IT-cnabled services are areas of strength for India.
Figure l.India-ASEAN merchandise trade
India’s Free Trade Agreement with ASEAN
India has concluded a dozen free trade agreements since the turn of the millennium. Though the early
agreements were with the immediate neighbors, the country has gradually extended the partnerships to
more distant nations including the ASEAN, South Korea and Japan. One of the earliest FTA treaties signed
by India is with the 10 ASEAN countries.
A cursory investigation shows that, the overall impact on the FTA in terms of boosting the trade relation
between the two partners seems to be only marginal. Though overall Figures seems to be impressive with
total trade surging from $43.9 billion in 2009-10 to $65 billion in 2015-16, the relative gains does not
seem too significant. It could be so as the number shows that though India’s exports to ASEAN went up
g i a 1 significantly in the initial years from $18.1 billion in 2009-10 to $33.1 billion in 2013-14, it swiftly fell
back to $25.1 billion in 2015-2016, a little lower than the export level achieved after the first year of the
Indian import:. —«►—-incJssn Exports
free trade treaty. In terms of percentage, the numbers show that the share of India’s export to ASEAN went
Trade Architecture in ASEAN: India’s Challenges and way forward up from 10.1% in 2009-10 to 16.9% by 2012-13 and it subsequently slipped to 9.5% by 2015-16, a level
Trade in ASEAN countries has been redefined in terms of trade in value added through global value lower than at the start of FTA.
chains- GVC. Developing countries like India, which need to kick start their manufacturing sector, have an The Indian imports from ASEAN surged steadily with the absolute value of imports going up from $25.7
opportunity to integrate into the value chain by participating in one particular segment of the value chain of billion in 2009-10 to $44.7 billion in 2014-15 after which it fell to $39.9 billion in 2015-16. The share of
a given industry. In order to strengthen trade and investment relations with ASEAN, India would need to be Indian imports from ASEAN has steadily gone up from 8.6% to 10.4%.
competitive and participate in the value chain of particular industries. As of2009, India’s participation in
value chains was limited and had not grown significantly ever since. The overall impact however has been marginal with the share of Indian ASEAN total trade creeping up
marginally from 9.4% to 10.1 % over the last six years. The trend in trade deficits depicts a not so positive
The Regional Comprehensive Economic Partnership RCEP is being negotiated by all the countries in number as it has surged up from $7.6 billion in 2009-10 to $14.7 billion in 2015-16. India’s total trade
ASEAN. On completion, it would account for 40% of world trade. However the overlap of membership deficit has surged up from 7% to 12.3% over the period. While the share of India trade with ASEAN has
between TPP-Trans Pacific Partnership and RCEP would affect Indian ASEAN trade. A successful TPP gone up marginally, the share of trade deficit has bloated disproportionately higher, posing a question on
would set increased quality standards of supplied products or parts of products at each stage of the value the gains that FTA bestowed on the partner countries.
chain thereby increasing entry costs for countries like India. The TPP may not come around with as ambitious
agenda on intellectual property rights as it aims to, but the standards it finally sets would be higher than Overview-India ASEAN Relation
what India is currently ready to agree upon. The current India ASEAN FTA has strict limitations on rules of The year 2017 witnessed ASEAN and India celebrating 25 years of dialogue, 15 years of summit level
origin (35% or more value added from the country where the goods are being imported) without any meetings and 5 years of strategic partnership. India’s relationship with ASEAN improved to the extent that
product specific rules, which make trade in value chains tougher. This is because value chains involve the regional grouping now seems to be the anchor of India’s Act East policy. Today, India has 30 sectoral
trade in parts and components and a product imported by a country involves value added by different dialogue mechanisms and seven ministerial level interactions with ASEAN, in fields such as external
countries in the chain. Thereby, the possibility of a high value originating in a particular country reduces. affairs, defense, connectivity, commerce, telecommunications, agriculture, energy, environmental issues
The standards set at the RCEP would be crucial in determining India’s future trade potential with ASEAN and tourism. India also shares strong bilateral relations with each of the 10 ASEAN member countries.
and India should approach the negotiations with a focus on rejuvenating its manufacturing potential.
But the relationship between ASEAN and India has not always been close. India throughout the Cold War
The make in India initiative in conjunction with the recently implemented investment agreement between was not in favor of involvement in regional organizations, preferring to focus on active participation in
India and ASEAN may help chisel Indian policies to facilitate India’s integration in the Asian value chain, global organizations. The geopolitics of the Cold War also placed ASEAN and India in opposing ideological
in sectors like electronics, gems and jewelry, automobiles and pharmaceuticals. blocs. The formation ofASEAN was viewed by India as a US measure to contain communism, which was
218 .......................................................
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■ Redefining Strategies For International Markets
on the rise due to the spillover from Vietnam War. A series of Indian moves created fissures in the already like maintaining tics, post nuclear test of 1998, isolating Pakistan during the Kargil War and lobbying
tensed ASEAN Indian relationship; India’s friendship treaty with the Soviet Union, 1971, its stance on the against Pakistan’s entry in the forum till 2002. Measures like signing of a Joint Declaration for Cooperation
Vietnam War, its recognition of Hang Samrin’s regime in Cambodia, its selective silence on the Soviet’s to Combat International Terrorism, maritime exercises with the navies of ASEAN countries, information
invasion in Afghanistan and criticism of the American present in Diego Garcia, India’s Peaceful Nuclear sharing initiatives and defense agreements with individual ASEAN countries have added a new dimension
to ASEAN -India relations.
Explosion, 1974 and its military modernization in 1980s.
ASEAN and India did converge on the issues of Zone of Peace- freedom and neutrality- ZOPFAN, in the Connectivity is another important issue ofconvergence between ASEAN-India, with India working towards
Indian Ocean Region and India maintained modest bilateral relations with a selected few ASEAN countries formalizing its transit agreements and establishing better connectivity infrastructure through land, water
in the economic sphere. But throughout the Cold War, ASEAN-India relations were dominated by tensions and air, relations have visibly developed in other areas like education, tourism, academic, cultural, social
and mutual suspicion. This could be summarized as missed opportunities due to political mistiust, economic and scientific cooperation. The ASEAN-India Partnership for Peace, progress and shared prosperity,
inconsequentiality and occasional military threats. 2004 and the Plan ofAction in 2012 highlighted the growing confluence in various areas between ASEAN
and India.
However, changes in the structural factors, like the fall of the Soviet Union, the rise of the parallel forces
of globalization and regionalization, the rise of People’s Republic ofChina, the Asian Financial Crisis and The rise of China has compelled India to put forth its best efforts to engage with ASEAN as a regional
the 9/11 attacks changed India’s perception regarding the value ofregional organizations. Worsening security grouping. The ASEAN countries have always looked to India for balancing against China, but India has
conditions and isolation at the international level along with the rising balance of payment crisis faced by consistently disappointed them. In the age of multilateral alignment, the geopolitics of the Indo-Pacific
India in 1991 compelled New Delhi to move from its recalcitrant approach to active engagement with region will either be defined by India’s engagement and cooperation with ASEAN and the like minded
regional organizations. countries, or by rising China’s expansive unilateralism in the Indo-Pacific region.
Former PM Narasimha Rao’s visit to select South East Asian countries marked the beginning of India’s Conclusion:
Look East Policy, with the ASEAN at the center. In 1992, India became a dialogue partner across limited While it’s recognized that ASEAN- India economic relationship has grown remarkably since 2002, there
sectors in ASEAN; it achieved the status of full dialogue partnership in 1995. Followed by the opportunity is immense potential for further growth ofrelationship through trade and investment and by India integrating
to appear at the ASEAN Post Ministerial Conference and thus became a full member of the ASEAN into the Asian Value Chain. Industries like automobiles, gems and jewelry have seen some integration
Regional Forum-ARF. Membership of ARF gave India the chance to share a high table with big powers between India and ASEAN nations. The make in India initiative may help such integration, targeting sectors
like the US, China, and Russia alongside ASEAN, on security issues in the Indo-Pacific Region. Since like electronics and pharmaceuticals. India’s trade advantage as an exporter of professional services and
then, ASEAN- India relations has continued to mature, apart from the brief period of 1997-2001, when IT related services must witness greater exports with the implementation of the services agreement.
events like India’s nuclear tests and the Asian Financial Crisis saw a .marginal dip in engagement. ASEAN
-India celebrated a commemorative summit in 2012, where relations were upgraded to a strategic India might face challenges due to the existing noodle bowl of trade agreements and mega RTAs which
partnership. facilitate ASEAN trade in GVCs. The effects ofTPP and RCEP would require greater commitments which
India would need to abide by, for entering the value chain. The formation of the AEC would further erode
Issues concerning economics, security and connectivity have always been at the center of ASEAN-India India’s opportunity by allowing free flow of skilled labor and capital within ASEAN region. Agreements
relations. In the year 2016-17, ASEAN accounted for around 10.4% of India’s exports and imports accounting reached at RCEP would crucially determine India’s future trade and value chain integration with ASEAN.
around 9.22% and 8.93% respectively, which is a considerable chunk. India signed FTA in goods in 2009,
and FTA in services and investments in 2014 with ASEAN. Apart from this, India has a comprehensive REFERENCES:
economic cooperation agreement with various countries of the ASEAN region. This resulted in concessional 1. Sarin, Vishal. India- ASEAN Trade and Economic Relations. (2016) New Century Publications:India
trade and rise in investments. Around 10% of the total FDI equity inflows to India come from the ASEAN 2. Bhasin, Avtar Singh. ASEAN India: Progress and Prosperity: Documents. (2012) Ministry of External
regions. Affairs: India
On security issues, inclusion in ARF was a major positive for India, having missed out on a permanent 3. Osius, Ted and C Raja Mohan. Enhancing India ASEAN Connectivity
membership at the UN Security Council. In recent years, ASEAN and India have seen their interests 4. https://thediplomat.com/2017/11/revisiting-asean-india-relations/
converge on the issues of nontraditional security in the IOR. Countries ofthe IOR have repeatedly suffered 5. https://thediplomat.com/2017/12/asean-and-india-converge-on-connectivity/
due to the rise in piracy, illegal migration and traffi eking of drugs, arms and human on the transnational 6. http://www.ideasforindia.in/article.aspx?article_id= 1593
level, as well as maritime terrorism. ARF permits India to discuss these issues, which are of immediate 7. https://blogs.timesofindia.indiatimes.com/minorityview/indias-free-trade-agreement-with-asean-has-
concern and can only be resolved on a multilateral level. India has also succeeded diplomatically at ARF,
only-had-a-limited-impact/
II 220 \ 221
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https://asia.nikkei.com/Politics-Economy/Economy/Economic-picturc-brightens-for-ASEAN-and- THE IMPACT OF SHARING ECONOMY ON SOCIAL WELL-BEING
8.
India-toward-2018?page=2 *Prof Karthik Raj KSupreetha
9. https://www.mea.gov.in/Portal/ForeignRelation/India-ASEAN_ReIations.pdf Assistant ProfessorJustice K. S. Hegde Institute of Management,
Justice K. S. Hegde Institute of Nitte.Management, Nitte.
10. http://ris.org.in/asean-india-economic-relations-current-status-and-fulure-prospects
11. http://www.kas.de/wf/doc/23557-1442-2-30.pdf
1. Introduction
12. http://mrunal.org/2014/09/diplomacy-india-asean-relations-fta-free-trade-agreement-in-goods-
services-investment.html The advancement of technology has led to the rapid growth in the movement of goods and services. As a
13. http://asean.org/asean/about-asean/history/ result, the market was in need to adjust with the changes happening in the economy by finding various
ways. Usually people tend to own thigs so that they can consume it whenever necessary. This made the
14. http://www.aunsec.org/historyofasean.php
resources deplete over a period of time. When the resource has been utilized and consumed by the people
15. http://asean.org/wp-content/uploads/images/archive/publications/ASEAN-Charter.pdf
for their own benefits, the resources starts diminishing and there arises the need of shared economy. The
16. https://www.isas.nus.edu.sg/ISAS%20Reports/ISAS%20Working%20Paper%20129%20- over consumption as a result of the great recession and also the increase in borrowing has resulted in
%20India’s%20Engagement.pdf
emergence of sharing economy.
Sharing economy involves sharing of human as well as physical resources i.e. production, distribution and
consumption of goods and services. Sharing economy in terms of business refers to either renting out the
goods and services which are owned by them or accessing the goods and services through online platforms.
There by it helps to meet the needs of all and assists in acquiring the goods and services to those people
who are in need it. The various aspects covered under sharing economy are shared ownership, collaborative
consumption, shared value, recycling, renting, borrowing, collaborative economy, peer-to-peer, crowd
funding, micro financing etc.
Sharing allows to share among the people who do not know each other and who don’t have common
connections. When the things are shared with strangers there is high degree of risk involved. But the
various platforms help the people in reducing these risks by giving feedback as well as ratings. The
special feature of this sharing economy is that it helps in mobilising technology, markets and the wisdom of
people to bring the strangers together. It also helps in making use of idle and under-utilised resources and
helps in cost reduction.
The scope of sharing economy covers information technology, transportation, communication, housing,
agriculture, finance and labour. It not only offers financial gain to the business but also provide social and
environmental values. The main sectors which adopted the sharing economy are transportation, hospitality,
food and beverages. As large number of Indians adopt this system, there will be sectoral improvement in
the next few years. All the sharing economy companies makes our life easier and also generates number of
opportunities to the people.
2. Objectives
1 • To study the benefits of shared economy on transportation sector
2. To evaluate people’s acceptance towards various facilities offered by the shared economy
companies on transportation
3. To analyse the impact of sharing economy on traditional business models
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3. Literature Review realising it. The sharing economy creates value by giving people an opportunity to use others'ears, kitchens,
The reason for economic changes lies in the shift from ownership to access and from products to the apartments and other property.it allows underutilised assets or dead capital to be put to more productive
services. These services are provided by the start-ups or innovative service suppliers through the digital uses (Daniel M. Rothschild).
platforms which allows the meeting between haves and wants. The common benefits which a sharing
The changing preferences of consumers are the main reason for the sharing economy to make its space in
economy offers are additional revenue to the people, efficient market solutions to the services and also
the transportation sector. Youth have been avoiding the idea of individual ownership which is associated
solving pollution issues. Here the resources are not concentrated but dispersed among multiple individuals
with the high cost and embracing the flexible and lower cost network of shared assets and services. In
which involve a drawback of resources getting ended up in wrong hands. It also involves risk on part of
addition to these, more and more platforms have started to provide technology based services which make
the security and impact on the taxes and the regulations. But the emergence of the sharing economy is
the consumers have various alternatives.
changing the society and people are getting multiple opportunities as result of competition (Longhi, Mariani,
& Sylvie, 2016) Usually people own the vehicles and keep it idle. As per the records a typical car remains unused for
The launch of self-driving cars promises to solve many problems for today’s travellers who operate approximately 23 hours a day. When the vehicle is unused it is the loss for the owners who has made huge
investment and also to those who provide maintenance services. These unused assets are the main source
vehicles in often unpleasant and exhausting traffic situations. Providing the opportunity to focus on different
tasks while travelling more safely through fewer traffic jams with the help of vehicle-to-vehicle and for the sharing economy which make use of the network technologies to help individuals or companies to
make best use of idle assets (Nielsen).
vehicle-to-infrastructure communication technologies(Tientrakool et al. 2011; Bosch & Axhausen 2016).
Car sharing considered as a short term car rental, allowing members to gain the benefits ofprivate car use The sharing economy has already made its place in the transportation sector by providing different
without the cost and responsibilities of ownership(Cohen n.d.). According to Navigant Research, the alternatives for transportation. As per the data, 8% of all adults have participated in automotive sharing
worldwide number of cars sharing members had the growth of2.3 million in 2013 and it is expected to 12 and 1% are served as providers i.e., by renting out their vehicles for an hour, day or a week. It is also
million by 2020. Car sharing services revenue is estimated to grow from approximately $1 billion in 2013 observed that people are expecting more benefits from this sector through the shared economy. As per the
to $6.2 billion. research conducted by Uber, the introduction of its cars has reduced the death rate of drivers by 60%
Referring to Barth et al. (5), the growth of car sharing is substantially affected by the implementation of caused due to drunk driving. In transportation sector, the sharing economy can be seen in the form of car
intelligent transportation system technologies. In order to improve overall efficiency, user-friendliness, sharing, ride-sharing or bike-sharing (PwC research). When people adopt the car sharing services, the
and operational manageability ofcar sharing services, these technologies are used for various information vehicle per person decreases. This offers environmental benefits and also reduces vehicle parking
systems driven domains such as internet and smartphone based reservations, smart card access to cars, on (Millard)The car sharing also benefits by reducing the car utilisation rates which in turn reduces the fuel
board navigation, and global positioning system technologies(Barth, Todd and Shaheen). consumption. It is also evident that it has reduced the usage of non-motorised modes and also private
automobiles. The emergence of sharing vehicles has reduced the emission of gas to a greater extent by
Sharing economy provides digital labour markets where in labour intensive services are traded. It helps in adopting these rental vehicles.
matching the requirement of the employers needs to select or appoint a suitable candidate and there by
matches the requests of the employer as well as the employee. Sharing economy is a platform where in it The social aspect advantage involved here is that the passengers get to know each other in a quick “speed
allows the remote delivery of labours electronically. For instance Amazon Mechanical Turk where they date” style which can bring benefits to businesses and even other kinds of relationships. The fact that the
are engaged in digital matching and administration process(Codagnone et al. 2016). driver usually has anotherjob as well (61 % of drivers have full time or part-time careers outside of Uber
according to the own company) might increase the chance of creating interesting business contacts for the
The sharing economy is based on the concept of borrowing, using or renting the goods and services from different parties of this “speed date” meeting.Delivery of goods is another perspective of the shared
one another. It talks about the high value of assets which remain unutilised or underutilised Various economy that has started to impact many supply chains. Uber and Lyft have recently expanded their services
technological digital platforms act as an intermediary in sharing process and bring safety and effectiveness not only to transport people but to offer delivery for companies, such as pizza and Chinese restaurants.
to the operations. It is also leading to the introduction of new business models. It is also obvious that the
sharing economy has turned out to be a threat to the various stakeholders like hotels, real estate brokers, 5.2 People’s acceptance towards various facilities offered by sharing economic companies towards
short term rentals etc(Hamari,2015) transportation sector
People have positive attitude towards sharing economic as it offers various facilities to people in the field
4. Analysis of financial services, transportation services, hospitality services, health sector, education sector etc. The
5.1 Benefits of shared economy in transportation sector
facility that has been offered by the sharing economy benefits the people in many ways. The acceptance of
As we mentioned earlier the shared economy is an emerging ,re„d which helps in sharing resources at people towards shared economy is high as it caters to the needs of customers and on the other hand
efficentand significantly lowerpncesto thepeople. Italso allows the people to use itemswithout owning consumers also look for sustainability, cost minimization, easy accessibility. People have an opinion that
it. Sharing economy is present ,n almost all sectors and everybody is participating in it without even sharing economy helps in providing greater efficiency in services when it compared to traditional m^d
li 224 ..................................... 225

Sharing economy makes the life of people easy going. 19 per cent of surveyed consumers have engaged in Taking into consideration one of the key factor i.e. price, cost being less, the preference towards Ola, Uber
a sharing economy transaction, while 44 per cent were familiar with the term sharing economy and the is slightly less. In addition, the comfort zone is also high as it provided air-conditioned facility. This made
remaining 37 percent people have not even heard the word (Coopers, 2015) people opt for Ola and Uber. The price charged by Ola, Uber is Rs.10-12 per km against auto and taxi
which is Rs.25 per km. The pickup and dropping to the set destination has made the life easier to many
According to the survey conducted in the year 2016 of September it was estimated that ai ound 94% of the
people and has made them choose Ola, Uber over taxi and auto.
commuters were refused by the taxi drivers who are popularly known as Kali-Peeli (autos and taxis
which were painted in black and yellow). They were refused by the drivers for a fact that they were not Major acceptance towards Ola, Uber can be seen in cities like Mumbai, Bangalore, Delhi, Kolkata, Jaipur
been taken to the right destinations where the passengers wanted to go. In times of emergency, customers etc. as sharing economy is of vital importance in these cities as ride sharing is cheaper than owning a car.
were finding it difficult to rely on these autos and taxis due to their refusal. When Uber was introduced in In addition, maintenance and repair cost is also been minimized and cut off. This has led to the greater
2009 and later it was followed by Ola cab which was introduced immediately in the next year 2010, it acceptance towards ride sharing and has deeply penetrated the market and has set a tough competition to
offered lot of benefits to the people as well as they were comfortable with the transactions because it the traditional business model like taxi and autos.
involves more social interactions than mere classic exchange.
As the service rendered by the Ola, Uber cab is of high quality, the acceptance towards Ola, Uber is
It is observed from the survey that 47 percentages ofpeople prefer Ola and Uber as they are considered to slightly high. Additionally, the payment for these cabs is done through paytm app which makes it even more
be the cheapest mode of transport comparing to other modes of transport whereas the 22% of the people convenient for the people rather can carrying cash or wallet along with them while travelling. Booking of
have a opinion that Ola and Uber are also the cheapest mode of transport when compared to taxi but cabs is done online. Again, it ss making the work and life of the commuters easy going as they do not have
costlier than the auto rickshaws. According to the online perception survey of app based taxis which was to go to the actual taxi or auto stand to book it and to take them to the place.
conducted by Mumbai Grahak Panchayath during August,2016 it was found that a total of76,169 commuters
have actively participated in it. Under Ola and Uber, the destination to which the commuters would like to reach will be already known to
the cab driver unlike taxi and auto where most of the times it is self-explanatory. Route and direction to
The survey of 2016 also revealed that around 80% of the users who uses app based Ola and Uber cabs travel will be guided through GPS. Therefore, it is seen that there is greater level of acceptance towards
have the opinion that these cabs provide better options as well for travelling. Usage of such apps were Ola and Uber cabs in India.
comparatively easy than going and booking the normal autos and taxis. It saved time and energy of people
5.3 The impact of sharing economy on traditional business models
as it takes only few minutes to book the taxis online and there by shared economy help the people to meet
The technology has disrupted the traditional method of doing business in transport sector. After Ola and
their emergencies and reach the destination without any refusal by the taxi drivers unlike “Kali-Peeli”.
Uber introduced and captured the market the normal taxis are considered as the conventional mode of
People have greater acceptance towards Shared economy in the transportation sector as it benefited them transport and thus it affected the taxi industry in India(Surakka 2016). In order to get the taxi, the passenger
by providing employment opportunities. Citizens also have the opinion that they would prefer Ola and has to contact a taxi driver or any agency, where in app based taxis it takes only few minutes to book a car
Uber cabs when they are paying almost equal amount as that of normal taxis and were getting the benefit of and shows the nearby driver and thereby person can reach the destination at predetermined rates. Here
AC which was providing great amount of comfort to the people. there is no chance of bargaining with the drivers as the rates are fixed while booking the cab itself but in
autos and taxis the possibility of bargaining is likely to be high because customers tend to believe that
The survey also showed that 11% of commuters prefer Ola and Uber services every day 15% once a
these drivers are simply charging higher prices(Magno et al. 2015).
week, 40% of several times a week, 13% use once a mouth and the remaining 21% are not using these
services offered by these cabs. This shows the acceptance level of people regarding sharing economy. As Mainly the taxis and auto rickshaws are facing problems because of the introduction of Ola and Uber in
per the survey conducted by MGP's in the year 2016 September it shows that 67% of the respondents rated India. It has affected the taxis and rickshawsof major Indian cities like Delhi, Mumbai, Bangalore and
Ola and Uber as good, while 8% ofthe respondents rated ‘kali Peeli’ is good on the other hand 19% of the Kochi. They say that there is a threat from these app based cars like Ola and Uber for their livelihoods and
commuters responded that the behaviour of Ola and Uber drivers as bad. The overall feedback received thatis why the drivers are demanding the government for better rules in order to survive in the market
for the services rendered by Ola and Uber is rated as very good that is 29%, while 28% rated it as good against app based services. In Mumbai black and yellow taxis popularly known as Kaali- Peeli taxis are
and 24% ofthe users termed rt as satisfactory and the remaining 19% rated it as unsatisfactory. hit because app based car services charge lower price when compared to normal taxis(Hamari &
Now a day’s people wan. everything ,o be done immediately and employ digital media in order to make Ukkonen,2015).
êa^'erand comfortable. To meet the expectations ofconsumers there are more than 10000 companies To survive in the market taxi and auto unions are demanding fare hikes from the government. They have an
m the sharing economy(s,em 2015) m which Airbnb is considered as one ofthe pioneers along with ride opinion that whatever the prices which they follow the same has to be followed by the app based companies
sharing company Ola and Uber. 6 like Ola and Uber. But in Mumbai in the year 2016 the black and yellow taxi drivers had not followed the
revised fare because of fear of losing commuters against Ola ad Uber which offer at cheaper prices. Ola
PH226 227
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and Uber have captured the market as it offers long distance trip where as these normal taxis are restricted Impact of sharing economy on social well being
only for short distance trips. They are losing competitive race against app based cars since they pay more Through sharing economy, it is possible to share material and non-material resources among people for
in order to obtain official permits which allow them to move in and around the city. It is found that the app their benefit. Impact has been depending on the company who share their business because service rendered
based car drivers earn more than the traditional taxi drivers. This is basically due to the software which by the companies will not be same for all it differs from company to company. It makes use of better and
allows them to optimise their time and sendees in a best possible manner(Westerbeek el al. 2016). efficient utilisation of underutilized resources. It provides opportunity for people to connect each other
and thus it helps them to meet sustainable development. It gives opportunity to earn maximum revenue from
People prefer Ola and Uber because it provides more comforts by providing air conditioning, comfortable
the unused sources( Codagnone and Martens, 2016)
seats and also safety by having GPS in their cars. These GPS enable the commuters to track the cabs on
time. Hence adoption of technology in this app based cabs made these traditional taxis under trouble. The growing sharing economy has led to generational cultural shift and people haveperceplion that it
When it comes to fixation of prices the taxis has to follow the prices which are pre-approved by the provides better service than traditional offerings and it is true also. It allows consumer to get access to
government where as these cabs have the right to raise or lower its rates according to the demand. Taxi their products and services in a convenient manner. Hence the impact of sharing economy on both consumers
drivers refuses to go to some locations that would be difficult for them, hence people have shifted from and suppliers are making productive use of both existing and underutilised resources. It also provides
traditional taxi services to this app based cabs which has satisfied the needs of the consumer to a greater number of possibilities for the better utilisation of resources(Nica,2015)
extent(Cohen et al. 2014).
It makes consumer to have temporary experience than having full commitment of ownership and it has also
Traditional taxi drivers are also forced to adopt technology like offering the customers to make online met the consumer needs by providing services as per their requirement. It makes people to have an alternative
payment which has the advantages for the taxi drivers so that they no need to bargain with the customer source of income among people by letting their cars or home for renting as well as it provides employment
with regard to prices and it would be convenient for the customer as well. In real it is impossible for most and starting a new business. It has been considered as alternative mode of transport against traditional
of the taxi drivers because they do not know how to use Smartphone. To meet the competition, it is modes of transportation A single car sharing vehicle can reduce household greenhouse gas emissions by up
important on part of taxi drivers to improve their quality of service. Greater innovation in app based cabs to 40 percent, the sharing economy provides solution to India’s environmental mandates. When people
like new offering has made the demand for these taxis even more down. started using app based cars it has resulted in decreasing the pollution( Codagnone and Martens, 2016)
Another problem faced by traditional taxi drivers against Ola and Uber is they are not controlled by Impact of sharing economy on ride sharing services such as Ola and Uber are the cost associated with it
transport department unlike these taxis. All the operations of traditional taxis are regulated by law and that means they need not to pay cost which is imposed by the government sun like taxi drivers. In
even they get licence for diesel car as well and this is injustice for taxi drivers. These taxi drivers are not transportation industry, it is found that these app based cars results in reducing journey times by 30% by
allowed to introduce surge pricing means when the demand is high they are not supposed to increase their taking short cut roots to reach the customers destination. People have reduced to buy the car for themselves
prices as per the government rules and regulation. The Ola and Uber drivers can increase the rates according rather they prefer to share the cars among the people in the society. Sharing economy in transport sector
to the demand. When there is less demand for taxis the drivers find it difficult pay the instalment amount on also helped to those people who are with smaller budget(Anon,2014).
their car loans(Nica, 2015).
No doubt sharing economy is considered as one of the fastest growing start-ups across the
In order to meet the competition in Mumbai in the year 2016 black and yellow drivers had started providing country but on the other hand it is unfair to those people who used to earn money earlier in
discounts upto 25% to their commuters but it was made available only if the bookings had done through traditional method of business.
taxi unions app or call centre. The main intention of offering discounts was to stay in the business against
Ola and Uber. But it couldn’t fetch result as the consumers are already satisfying with the services provided 5. Conclusion
by the app based services. Introduction of sharing economy has indeed benefited different sectors of the society. The fact of sharing
has led in effective and efficient use of resources that are available, has opened the door of transparency as
In order to overcome these challenges in the traditional taxi industry they have to introduce booking of cabs hotels, restaurants, and rooms etc, generated employment opportunity as well as through
alternative method of payment suchas onlinepayment.lt would be convenientforthe customer sharing economy the interaction with the people has increased and helped in building networks. AH the
to pay online who doesn't have cash in their hand. I.also provides greater payment security economic and social activity involved through online transaction is sharing economy. The emerged apps
for the taxi company and the passenger as well. The traditional taxi union can create app of like Airbnb OYO rooms, Ola, Uber etc. has enabled the individual to get all his work done by himself and
thetr own Similar to Arro which is found in United States. Taxi companies must offer has cut down the cost given to middlemen and has facilitated direct and efficient services. Sharing economy
comfortable and well-maintained cars fortheir commuters by keeping in mind the customer’s has led in minimization of maintenance and repair cost as the asset is been rented and shared by people
comforts by providing comfortable seats and air conditioning. Hence by doing this they also helped in reducing the pollution and harm caused to the environment.
could survive ,n the market against Ola and Uber and make their livelihood
228 229
" , Redefining Strategies For International Markets Redefining Strategies For International Markets
However, sharing economy equally affected different sectors as well. Introduction ofOla, Uber has impacted CHALLENGES FACED BY RURAL WOMEN ENTREPRENEURS IN INDIA
traditional business model such as taxi and autos. Usage of cabs like Ola and Uber cabs are high in Delhi, *K. UmeshShetty
Mumbai, and Kolkata. And in these cities, the taxi and auto drivers are witnessing the changes and impact HOD, Dept.of Commerce, Alva’s College, Moodubidire
as to how their earning has been effected through introduction of Ola and Uber.
Introduction
The low price charged by Ola and Uber, the comfort ability provided by them and also the convenience in
In the present globalized era, there has been a radical progress in the field of economy. In this progress
booking cabs online, pickups and dropping the passengers to the right destination on time has influenced
women s participation is of greater importance. These women entrepreneurs have generally gained potential
ma ny commuters and have made them opt for Ola and Uber cabs over taxi and autos. On the other, safety is
from the Self Help Groups. In fact these SGHs are making women as economically independent if not a
at great concern. The scope for rapes, harassments etc. are quite high in case of these cabs.
sound one. They are emancipating their voice in all the spheres including the field of economy. Wo iii'j i
Therefore, one cannot conclude saying opting for Ola and Uber is safe and is a better option as it provides Entrepreneur, in a larger sense, therefore is a woman who accepts challenging role to meet her personal
all necessary requirements. One must take a wise decision when it comes choosing between Ola and Uber needs and become economically self-sufficient. A woman faces numerous problems to reach her familial
or autos and taxis. Timing of booking the cabs, must also makes sure that the GPS is on and the location, needs. At last, a women entrepreneur becomes economically self-sufficient after facing challenges. By
driver etc. is tracked properly in order to avoid risks. identifying herself a successful entrepreneur, she shines in the two faces of her life i.e. society and family.
6. References & Bibliography As the title of the paper indicates, there arise some questions. They are, Do rural women compared to
• Yaraghi, N., & Ravi, S. (2017). The Current and Future State of the. Brookings India, 38. Retrieved urban women? Do rural women compared to rural men? Do they have different problems other than an
from https://www.brookings.edu/wp-content/uploads/2016/12/sharingeconomy_032017final.pdf urban woman and a rural man? There has been a serious discussion taking place about gender bias. Apart
• Matofska, B. (2016, September 1). What is the Sharing Economy? Retrieved September 10, 2017, from this gender inequality there are some hidden barriers to rural women’s entrepreneurship? The current
from The People Who Share: http://www.thepeoplewhoshare.com/blog/what-is-the-sharing-economy/ paper throws light on the concept of challenges (problems) of rural women entrepreneurs.
• Martucci, B. (n.d.). What Is the Sharing Economy - Example Companies, Definition, Pros & Cons. Objectives of the study
Retrieved September 10, 2017, from Money Crashers: http://www.moneycrashers.com/sharing- ® To understand the concept of rural women entrepreneurship
economy/ • To find out the various reasons that influences rural women to become an entrepreneur
• Johari, A. (2016, May 9). Unfair competition? How Uber and Ola are killing livelihoods ofMumbai s • To identify the problems faced by rural women entrepreneur
auto and taxi drivers. Retrieved September 10,2017, from Scroll.in: https://scroll.in/article/807342/ • To offer suggestions to overcome the problems faced by rural women entrepreneurs
unfair-competition-how-uber-and-ola-are-killing-livelihoods-of-mumbais-auto-and-taxi-drivers
Methodology
Dowme, R. (2016, August 21). The Sharing Economy: Financial Services Will Be Next. Retrieved The present study is an empirical study based on Secondary data. The secondary data have been collected
September 10,2017, from Investopedia: http://www.investopedia.com/articles/markets/080916/sharing- from various websites, published books, Journals, Periodicals, published reports of RBI, NABARD,
economy-financial-services-will-be-next.asp DWCRA, Census Surveys, SSI Reports, newspapers, literature review prepared by online available studies
• The Sharing economy, (n.d.). Consumer Intelligence Series, 30. Retrieved from https://www.pwc.com/ and journals.
us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-sharing-economy.pdf
Women Entrepreneurs
• Chen, T. D., & Kockelman, K. M. (2016). CARSHARING’S LIFE-CYCLE IMPACTS ON ENERGY The Government of India has defined Women Entrepreneurs based on women participation in equity and
employment of business entrepreneurs. Accordingly, a Woman Entrepreneur is defined as “an enterprise
owned and controlled by a women having a minimum financial interest of 51 per cent of the capital and
• Uber, Ola face increased resislance from traditional tmnsport. (2016, July 28). Retrieved from livemint. giving at least 51 per cent of employment generated in the enterprise to women”. However this definition
is subject to criticism mainly on the condition of employing more than 50 per cent women workers in the
enterprises owned and run by the women (Khanka S.S. 2007).
Rural Women Entrepreneurs are those entrepreneurs who actually reside in rural areas and mobilize human
resources requirements from those areas in which they live.A rural women entrepreneur is a woman or
group of women who undertake to organise and run an enterprise in a rural area.
II 230 231
• Paradox of Illiteracy results in lack of knowledge and skill:
The title of the present paper entitled, “Challenges Faced by Rural Women Entrepreneurs in India” is The problems faced by rural entrepreneurs are overlapped on one another. As literacy ratio of rural
itself partially brings the umbrella of the problems of rural women. These problems are in umbrella fonn women is low, is directly affects the ratio of women entrepreneurs. They are benighted of new technologies
and arc overlapped on one another. These entrepreneurial problems make one to understand the,b,c of and its developments. They are completely oblivious towards marketing knowledge. The enigmatic concept
every rural women entrepreneur. In fact, it provides the peripheral view of the problems/challenges of a of literacy and skill are intrinsic things for a rural women entrepreneur to set up themselves in marketing
women entrepreneur. sector. Apart from literacy there exists the problem of being skilled. For a rural Indian woman of poor
Factors Motivating Rural Women to involve in Business Activities: economy with various skills faces the problem of financial assistance. Meanwhile a woman entrep
Many studies indicate that women start businesses for fundamentally different reasons than their male of sound economy may not be skilled. Hence it’s puzzling of absence and presence of skill and knowledge.
counterparts. Women most often found businesses in order to meet personal goals, such as gaining feelings Above all there are women entrepreneur from rural areas in whom both skill and economic assistance
of achievement and accomplishment. In many instances, women consider financial success as an external should be provided.
confirmation of their ability rather than a primary goal or motivation to start a business, although millions • Lack of financial assistance:
ofwomen entrepreneurs will grant that financial profitability is important in its own right.Many researchers
Does the law provide equal financial support to women entrepreneur as men in financial rights and the
drew inferences on factors influencing the women to become entrepreneurs. The gist of all the researchers equal inheritance rights? As all problems are enchained with one another, the problem of financial support
accord that the following are the major reasons for women entrepreneurship; cannot not detach from the chain of problems. It is the underlying problem for a woman to establish an
* Need for Power *Getting self-actualization *Seeking Independence * Need for achievement * Presence enterprise; as a result she steps back or makes a blind eye to become a successful entrepreneur. It is true
of knowledge and skills * To become a leader *Economic compulsion * Inspiration from others success * that women have lesser opportunities and ample of financial problems to be equipped. This is only because
Frustration in the present job * Motivation towards new enterprise * To get control over the business * Not of insufficiency of tangible security and credit in the market. Along with these they are heedless about the
finding a right/ suitable job * Need for additional income * Thrust to create new things etc. process of receiving finance in banks.
Challenges Faced by Rural Women Entrepreneurs • Imbalance between family and profession, phobia of bearing risk:
Women play a vital role in the growth and development of the economy of the nation. They attain the It’s the Indian tradition, in which the society and women itself considers that, a women is always ‘catted
success in the entrepreneurial world by facing a lot many problems. There may be various problems for and fished” after her marital life. It’s absolutely true. But at the same time it binds women’s freedom within
women to get entered into the world of entrepreneurship. But their ultimate aim is to reach the peak of the context of family. Besides these, a woman plays the role of mother and wives. These all marital
success and to be economically sound. This type of target of every rural women entrepreneur brightens the bindings of rural women within the rigid traditional rural area compel a woman to be in the same boat and
development of country along with the development of women entrepreneurs. The problems faced by rural to enjoy within the margin offamily. Since from the time immemorial, especially from Manu’s “Manusmruti”,
women entrepreneurs are more than that of the problems faced by the men of rural area and the women of it has been socially practiced that women is of secondary position comparing to men. Especially in rural
urban area. This is because they neither face gender bias nor the problem of literacy respectively. areas women live under the shadow of men. They are strictly compelled to live within the boundary of a
family. They in fact sacrifice their own life for family. By living under the shadow of their husband, they
The participation of women in the field of economy not only improves the nation and also women. Indian
never put an effort to become an entrepreneur. Thus rural women lead their life in darkness by hiding their
rural women entrepreneurs become part and parcel of the development of the nation. As rural women is skill and dreams. As none of the family members support, ultimately women gets phobia about bearing risk
one of the major human resources and opened to all natural resources. They even assist men in all walks of
towards entrepreneurial activities.
life along with agriculture. Henceforth ifthey take participation in the area of business, they can lower the
concept of “brain and drain within the nation by finding employment in their own rural area. There is a • Lack of awareness about government programs and schemes:
saying in English, “Problems come in bunch not in single”,and this saying is very true to the rural women Unawareness is one of the drawbacks of rural women entrepreneurs. The government schemes are framed
entrepreneurs as they face innumerable problems. These problems may be social, economic or entrepreneurial to be benefitted for such entrepreneurs. Therefore it is very essential for one to be in touch with all the
one. governmental schemes so as to utilize and enjoy all the facilities. Here the fundamental problem lies. As an
entrepreneur is hailing from rural area, her social networking limits to her own village. These exists
• Gender bias in formal institution:
chance to get information about all governmental schemes. Even though India is underdevelopment, Indian
In rural areas women face legal and institutional segregation and discrimination, wherein laws and
rural condition remains same; especially the societal status of women is concerned. It’s even very sad that,
regulations hinder women’s ability to become successful entrepreneurs. As India is dominant by patriarchal some of the programs are remained unused by the entrepreneurs because of lack of information.
male culture, it’s not so easy to come out of the social bindings for rural women. Therefore assisting
women to the process of setting up a business is not enough. It is very essential to give mental support out • Failure of training in skills:
of gender bias to succeed is also important. Skill is the elemental thing, on which the success of every entrepreneur lies. Besides these, management
■-........................ 233
■I
skills and training should be offered based on their area of interest. Women entrepreneurs have very least come out of the gender biased thoughts. Irrespective of caste, creed, an entrepreneur has to work with male
amount or limited technological awareness about technology. In fact, they may not have any kind of workers
technological knowledge, it will be nil among rural women. If atall they have then the knowledge of • Absence of self-confidence:
technology less than the rural men. The only reason for the unawareness of technological knowledge is
For every individual mental and moral support is of great importance. When it comes to the field of
because; villages have always maintained the high statistics of dropping out and poor quality of education.
business, one must inculcate it. The self-confidence is an elemental thing which plays a vital role when the
There are few who have adequate education which is not at all of technological one. Therefore a rural
entrepreneur’s business becomes topsy-turvy.
entrepreneur fails to receive training skills as their foundation of primary and secondary education is not
well grounded. Suggestions
The main challenges faced by rural women in business are educational & work background;they have to
Problems in the Professional Sector:
balance their time between work & family. But,there is absence of proper basic facilities for their progress.
Managing the business sector is as important as the moral support of a family. Meanwhile there exists
Right efforts from all areas are required in the development of women entrepreneurs.The following efforts
number of problems.
can be taken into account for effective development of women entrepreneurs.
• Lack of security for a woman entrepreneur: i. Better educational facilities and schemes should be extended to women folk & from Govt. Part.
Always a rural women symbolizes innocence, it may put her in trouble. There exists the problem of ii. Training Programs on management skill should be provided to women community.
insecurity from her own male workers with whom she has to interact in her own professional field. The
iii. Counseling through the aid ofcommitted NGOS, Psychologists, managerial experts & technical personnel
insecurity may be for as she is professionally superior than her male workers.
should be provided.
• Lack of market knowledge: iv. Making provisions of marketing & sales assistance from Govt. part.
After the successfiil of receiving all the benefits, it’s a big challenge for a rural entrepreneur to have v. Making provisions of micro credit system & enterprise credit system to the women entrepreneurs at
command over the field of marketing sector. As the women are hailing from rural area, she is unable to local level.
have adequate amount or sound knowledge of marketing area. As it’s a computational world, an entrepreneur
vi. Training entrepreneurial attitudes should be given at the High School level through well designed
should be always aware about good marketing environment to sale her goods and ofmarketing value.
course.
• Lack of social network:
Irrespective of the gender bias, an entrepreneur must have a social relations or contact so as to accompany Conclusion
-Entrepreneurship among women, no doubt improves the wealth of the nation in general and of the family in
with a good market area and value. It’s the rigid societal boundary which restricts an entrepreneur to have
particular. Women today are more willing to start their own business or to take over family owned business.
good social networks. Since majority of rural women entrepreneurs operate small scale Industries, many
The contribution of rural women to the economy is quite significant. Rural women are not so aware and
entrepreneur establish enterprises based on their hereditary occupation in a small scale. As a result it’s
literate as to handle all the legal and other formalities involving in loan taking and establishing an Industrial
highly impossible to gain a good social network. Meanwhile most ofthe highly professional organizations
are run by male, and in many circumstance these many does not wish to encourage the women entrepreneur.
Unit. They also lack confidence in their ability to run the entrepreneurship. They need capacity building
and training in functional areas such as finance, literacy skills, marketing, production and managerial
It may even be said that it’s the phobia of men entrepreneur about the complete empowerment of women
skills. The only urgent need is to create a favorable atmosphere to increase self- employment for women
entrepreneur. Thus lack of social network deprives women entrepreneur to reach the peak of profit. Hence
and over all developments of the country. Thus, there are bright prospects for rural women entrepreneurship
it can even be said that lack of social network lacks the progressive business and the carrier of women
entrepreneur too. At the same time it’s very hard task to establish a highly professionalized organization. In in India.
other words lack of network limits the scope of business to their hometown level. The education and awareness programs should be arranged to change the negative social attitudes towards
• Absence of professional personality: women The Training programs should be made more structural taking into consideration the socio economic
background of the women entrepreneurs. To overcome ofpsychological problems is that lack of confidence,
Personal and professional lives are the two faces of every entrepreneur. Meanwhile the above statement women
low risk taking capacity, counselingshould be provided to the existing and emerging rural ~:
does not mean the beauty of a rural entrepreneur; rather it's the behavior of the entrepreneur in the
entrepreneurs with the help ofNGOs, psychiatrists, technical persons and management experts. The problems
professional world how an entrepreneur interacts with other members
of women entrepreneurs cannot be solved only by government intervention. There should be women
• Interaction with male workers in an entrepreneurial world: entrepreneurs who can give great ideas and be able to translate them into reality, persuade fellow
In the general sense, a woman always feels shy to work with a man of opposite sex, even though she is entrepreneurs and policy makers. Self-help mutually aided groups must be formulated for overcoming the
skilled and knowledgeable. But, in the present entrepreneurial world as entrepreneur has to vanish or common entrepreneurial problems.
!■“........................ 235
il
References
• VIJAY KUMBHAR, Some Critical Issues of Women Entrepreneurship in Rural India, EUROPEAN
ACADEMIC RESEARCH, VOL. 1, ISSUE2/MAY 2013.
• AnithaD.Pharm, Dr. R.Sritharan, Problems Being Faced By Women Entrepreneurs in Rural Areas, The
International Journal Of Engineering And Science (Ijes) Volume2, Issue 3, Pages 52-55,2013.
• SreenivasRaoBehara, K.Niranjan, Rural Women Entrepreneurship in India, IJCEM International Journal
ofComputational Engineering & Management, Vol. 15 Issue 6, November 2012.
• JyotiBahl, Status ofwomen entrepreneurship in rural India, Asian Journal of Multidimensional Research
Vol.l Issue 2, July 2012.
• Kishor N. Choudhary, Dr. ArvindP.Rayalwar, Opportunities and Challenges for Rural women
Entrepreneurship in India, Variorum Multi- Disciplinary e-Research Journal Vol.-Ol, Issue-Ill, February
2011.
• Brijesh Patel, KiritChadva, Rural Entrepreneurship in India: Challenge and Problems, International
Journal ofAdvance Research in Computer Science and Management Studies, Volume 1, Issue 2, July
2013.
• Dr. A.B. Siddiqui, Problems Encountered by Women Entrepreneurs in India, International 9Journal of
Applied Research & Studies ISSN 2278 - 9480
• Khanka S.S. (2007): “Entrepreneurial Development”, S. Chand & Co., New Delhi, pg. 23
• A.K. Singh, K.Suguna, R.V.M Reddy, “Women Entrepreneurship-Emerging Issues, Challenges and
Strategies”, Serials Publications, 2013, Vol: 1 Pp. 407,482, 512
PharmA, and Sntharan R. Problems Being Faced By Women Entrepreneurs in Rural Areas. The International
Journal of Engineering And Science, 2013
236
I
Dr. Catherine Nirmafa Rao

An Academicianjor theyast 26 years, Dr. Catherine is currently working as Associate
Professor in Post Graduate Deyartment oj Commerce. St Agnes College
(Autonomous). An avid researcher. Dr Catherine has comyfeted her Ph. D in M. S.
University Tirunefvefi andM. Phif in Finance. She has comyfeted2 Minor Research
yrojects andyresented 20 research Basedyayers in Nationaf and International
Conferences andhas severafyuBfications to her credit.
Ms.Dofan C. Banerjee
An Academicianjor a decade, she is currentfy working as Assistant Projessor in Post
Graduate Dtyartment oj Commerce, St. Agnes Coffege ( Autonomous). She has
comyfeted M.Com, PGDMM. and is currentfyyursuing her Ph.D. in Human
Resource Management. Her areas oj expertise are Knowledge Management, Labour
Laws, Organization Devefoyment andTranjormation, Human Resources Planning, !
Economics, International Business, Research Methodology, Entreyreneurshiy
Devefoyment, Brand Management, Retail Oyerations Management, Marketing
Management, Princiyles andPractices ofManagement andOrganization Behaviour.
She has Comyfetedone Minor Research Project Syonsored By UGC andhas more that
25yapers on her credit injournals andconferences. Her current research interests are
in EmotionalIntelligence, Cognitive Intelligence andSyiritualIntelligence. y
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REDEFINING STRATEGIES FOR

Dr. Catherine Nirmala Rao

REDEFINING STRATEGIES FOR

Sr. Dr. M. Jcswina A.C.,

1. IB-1 GOING GREEN OR GOING THROUGH GREEN - A STUDY Marketing

4. IB-4 18. IM-3 A DESCRIPTIVE STUDY ON GREEN MARKETING:

years. Platinum Jubilee Celebrations were inaugurated on 14 Septembei 1992. No No No No

O 50% places More than 60 Yes Yes Yes

Most of the banks were established before independence except IDBI.

None of the banks have LEED certified Green buildings

Table7: Type of account Percentage 60 18 14 8

II." ■■■■■■ ■ ■ B B B ■BBBBBBBBBHUIBSaUB B W *

Redefining Strategies For International Markets

Old generation 05 05.6 in

Source: Craig Churchill and Mic/tal Maul, 2012

Micro Insurance 'j 20%

Introduction 3) Electronic Data Interchange

No. of Respondents Percentage No. of Respondents Percentage

Never use 10 20 Total 50 100

No. ofRespondents No. ofRespondents Percentage

❖ To highlight the facilities given by various banks

■ Strongly agree iAgree Neutral ■ Disagree ■ Strongly disagree

• A to*"' -■ >si a" its members v. 'n tne

In your opinion why do we need diversity in the organization?

Employee Engagement: Definitions

A Conceptual Envisage Of Employee Engagement Country

122 *' \ 123

Educational qualification Frequency Percentage

Total 100 100.0

N- 100 Source of data: Survey

N= 100 Source of data: Survey

N- 100 Source of data: Survey

Leisure Particulars No. of respondents Response in percentage

Literature review Need for the Study:

plates, and water glasses are

CSR assistance provided to schools

history by contributing Rs 351.42 lakhs for the

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organization which was proved by previous researches.

c). National Savings Certificate: National Saving Certificate y

186 ■■■■■■■a ■■■■■■■■■■ ■ ■■■■■■■■■■a 187

*Rakshitha Shetty ** Akshatha Kullal ***Rajath Kumar

3. Speed and time of change: c) Political philosophy:

formed the core of this policy. Services

Indian Asean Relation: Impact On India

India Asean Trade Trends

li 224 ..................................... 225

Dr. Catherine Nirmafa Rao

B-DIGEST Publications ? 1000/-

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