IDEAS ON POLANYI’S MARKETS

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April-June, 2012Vol. - II, No. : 2I.S.S.N.-2249-1260E.I.S.S.N.-2250-1819

JournalofManagementandScience-JMS

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JOURNAL OF

MANAGEMENT AND SCIENCE

A International Level Quarterly Journal

on Journal of Management and Science

Published by

Non Olympic Times


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June Issue

JOURNAL OF MANAGMENT AND SCEINCE

EDITORIAL BOARD CONTENTS Page No.

Dr.A.Chandran

Managing Editor,Dean, RVS Faculty of Engineering,Tamilnadu, India.

ASSOCIATE EDITORS

Dr.Frank Fuller

Professor, Department of PoliticalScience, Clark Atlanta University,USA.

Dr. Arup BarmanReader, Dept. Of BusinessAdministration, Assam University,Assam, India.

Prof.P.Malyadri

Principal, Government Degree CollegeOsmania University, A.P., India.

Dr.V.Vijay Durga PrasadProfessor and Head, Department ofManagement StudiesPotti Sriramulu College of Engineeringand Technology, A.P., India.

Dr. Arul SureshProfessor , Department of CommerceLoyola College (Autonomous), India.

Prof.M.VenkatachalamDepartment of MathematicsRVS Faculty of Engineering, India.

Prof.K.PrabhakaranDepartment of Management StudiesRVS Faculty of Management, India.

IDEAS ON POLANYIS MARKETS

Frank Ful ler

A EFFECTIVENESS OF TECHNICAL INDICATORS - A STUDYON CNX IT INDICES

K.Prabhakaran and S.Nagarajan

A STUDY ON HR ISSUES IN RETAIL OUTLETS INCOIMBATORE

M.G.Saravanaraj, S.Arul senthi lkumar and N.Punitha

ANALYSING THE VOLATILITY OF NSE INDICES EMPRICALSTUDY

V.Prabakaran and D.Lakshmi Prabha

THE EFFECT OF DEMOGRAPHICS ON INVESTMENT CHOICE:AN EMPIRICAL STUDY OF INVESTORS IN RAJASTHAN

Dhi raj Jain and Khushboo Ranawat

AN EMPIRICAL STUDY ON BARRIERS OF INNOVATION ININDIAN SMES

S.Poornima and K. Ni thya Kala

IMPLICATIONS OF INTERMEDIARIES IN GLOBAL LOGISTICS

OF FOREIGN TRADEC. Muthuvelayutham and R.Karuppasamy

A STUDY ON CONSUMERS BRAND PREFERENCE TOWARDSPURCHASING CARIN TIRUNELVELI DISTRICT

T. Samson Joe Dhinakaran

WORD OF MOUTH: THE KEY TO UNLOCK HINTERLANDP.Pri alatha and K.Malar M athi

EVALUATION OF CONSUMER PROTECTION COUNCIL WITHSPECIAL REFERENCE TO ERODE DIRSTRICT

N.A.Kri shnamurthi and K.M . Suresh

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11-20

21-32

33-41

42-61

62-68

69-74

75-80

81-95

96-105

It is assumed that the submitted manuscript has not been published and will not be simultaneously submitted or publishedelsewhere. By submitting A manuscript, the author agrees that the copyright for his articles is transferred to the publisher, if andwhen, the paper is accepted for publication. The publisher cannot take responsibility of any lose of manuscript. Therefore, authorsare requested to maintain a copy at their end.

Readers may send popular articles of topical interest in English to the editor email address ([email protected])


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IDEAS ON POLANYIS MARKETS

Frank Fuller

Department of Political Science, Clark Atlanta University, USA.

ABSTRACT: What makes a market society one that is more beneficial than a society that is state-

regulated? Is the world market truly leading towards these types of changes? Prosperity comes from greater

interaction between states and markets. Firms drive needs for global trade, but society within states

promotes market changes. Some regulation of markets is desirable, while free markets must have some

enforcement mechanism of rules to address inequalities and alleviate some of the side-effects of market

transition.

Key words:Polanyi, Political Economy, Subsistence Farming, Globalization

1. Introduction. One can ask the question, does democracy reduce income inequality, or does it in fact

have the opposite effect, especially with respect to Latin America and Eastern Europe? Is a democratic-

oriented society more beneficial than a society that is state-regulated? Polanyi asserts that societies that

endorse much of the laissez-faire ideology today, especially endorsed by democracies, are sorely lacking in

providing needs for the poor and in assessing the problems of the underprivileged. Who are the ones that

actually benefit, such as when more industrialized countries go in and invest in a Third World nation (such

as Mexico) to build a manufacturing plant, with most of the profits being funnelled back into the host

country? Lenin, for one, emphasized this point about capitalism:

Lenin asserted that finance capital was responsible for imperialism, notably for the struggle for

spheres of influence, concessions, extraterritorial rights, and the innumerable forms in which the

Western Powers got a stranglehold on backward regions, in order to invest in railways, public

utilities, ports, and other permanent establishments on which their heavy industries made profits,

as cited by Polanyi (2001, 16).

2. Problems with Income Inequality. Such are certain gaping disparities that exist even in today's global

economy. The call for state regulation of markets is not unwarranted, as Polanyi would advise even the

most stable of markets to have some sort of regulation. However, the Washington consensus favours the

opposite view and perceives the inequalities as mere side effects that are necessary in any society that ismoving towards a freer, more interconnected world system, for they believe that "the key to transformation

is 'getting prices right' and getting the government out of the economy through privatization and

liberalization," cited by Polanyi (2001, XIV). The challenge is to find which system is the most effective

and perhaps view some alternative means of resolving the debate. The most difficult part of a society

moving from one of, for example, subsistence farming into one of diversified industries is the fact that there

are many people who will not benefit from these drastic changes. The poorest of the poor and those whose


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products will become obsolete with emerging technology will be most affected. What is to be done about

these people, economically speaking? Democracy is supposed to bring excitement, opportunity. However,

we see that this is not always the case, as the reality sometimes paints a different picture in Budapest,

Hungary:

Intense, undisguised begging is certainly a new phenomenon in Budapest. Poverty is not new, but

the wide-spread perception of misery is, and inequalities are more striking than earlier. Begging,

usually considered an offense by the police, was not possible during the state socialist period: the

fiction of full employment and security held so strong in the days of high socialism that the

motivators for givingbad conscience or genuine empathy for displayed povertydid not exist.

While taking note of the striking and colourful crowd of beggars during his visit to Moscow in

1926-27, Walter Benjamin observed that one very seldom sees anyone to give. Begging has lots

its strongest foundation, the bad social conscience, which opens purses so much wider than does

pity. But social conscience is back and it does open purses, but due to the homogenization of

neighbourhoods and to increasing motorization, not the purses of those whose conscience is

supposed to be the worst: the wealthiest hardly ever encounter beggars. (Field evidence suggests

that this is one reason that this is one reason for choosing to drive instead of using public transport

on the part of those who have a choice.), according to Bodnar (1998, 499-500).

The only possible alternative to such a situation, Polanyi would say, is to regulate markets so that the

disparity of income is minimized somewhat. Public housing can be provided for the poor, as well as public

assistance of various kinds. The system of governance cannot always be accounted for in contributing to

many of the problems. Even in a stable system with sound political solutions, there is always going to be

one group left out, for in self-regulating markets, "such an institution could not exist for any length of time

without annihilating the human and natural substance of society; it would have physically destroyed man

and transformed his surroundings into a wilderness," as Polanyi (2001, 3) states. Those in abject poverty,

with the help of the state, can be taught to be aware of these types of changes that formulate. The

involvement of the state is critical to helping these underprivileged groups to survive, for if no one claims

them, they can wither and die. In times of crisis, such as a famine, a Third World nation, such as Mexico,

on the brink of industrialization suffers most if it does rely heavily on subsistence farming, as stated earlier.

There is little room for compromise when considering the effects of how the total markets will be affected,

since profits will virtually be eliminated for the small farmer and the means to survive will decline even

further. The state's efforts can offset the losses, provide for a workshop or two on better farming

techniques, and even aid the workers in investing in more sophisticated farming equipment. Unregulated

markets, particularly those that operate under capitalism, can lead to unintended consequences, not the least

of which is providing for the few and taking away from the many. Tony Waters, in an article on Tanzania,

for example, explains that activities such as subsistence farming are outside of the typical market activities

and can often lead to exploitation if some effort is not made by the state to address this sector of the


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economy, according to Waters (2000, 617). Industrialization also cannot avoid certain realities, which

"Pauperism fixed attention on the incomprehensible fact that poverty seemed to go with plenty. Yet this

was only the first of the baffling paradoxes with which industrial society was to confront modern man,"

says Polanyi (2001, 88).

3. Unregulated Markets vs. State Intervention.Is the world market truly leading towards these types of

changes? Is the Washington consensus striving entirely to industrialize with regard for little else? This

seems so, since many Western European democracies are pushing ahead with entrepreneurial spirit and

with sparse room for many alternatives. What would happen if the unregulated markets were to continue

unchecked? Disaster would not only occur in crises, but the income gap would be widened between the

haves and the have-nots. This would not be the only problem, but exploitation would occur by host

countries to Third World institutions. Exploitation itself "has been perpetrated so often, so persistently, and

with such ruthlessness on the backward peoples of the world by the white man" that it remains such a

critical issue even to this day, according to Polanyi (2001, 166). One can actually observe this exploitation

if one looks carefully at the way that United States' businesses operate in Mexico. For example, many of

the factory workers in Mexico (in the plants set up by US and other multinational corporations a

corporations are often non-unionized, poorly paid, and deprived of the social benefits of economic

development according to Sklair (1992, 99). Mexican organizations can pick and choose how they

decide to initiate democratic principles, which makes managing at the micro level harder. The labour

unions are few, the pay for workers, especially at minimum wage, is much less, and the environmental

regulations set forth by many governments have declined to the point of being major hazards throughout

this smaller, more vulnerable nation. The most dangerous aspects here are the fact that the environmental

regulations would have fewer boundaries or limits as to how much pollution there is. There must be some

kind of authority to check on private corporations in maintaining an ecologically friendly approach. Vicki

Birch field contends that Polanyi demonstrated that capitalist productionhad to be insulated from the

devastating effects of a self-regulating market; despite being a critic of capitalism, Polanyi wasa

pragmatist who believed socialist ideals could be accommodated once the myth of the free market was

finally disposed of and the economy re-submerged in social life rather than its obverse under economic

liberalism, cites Birch field (2005, 587). All of the nightmares of the antitrust and the extreme pollution

that everyone hears about will certainly come true if free markets continue unchecked in other nations in

the foreseeable future. However, there is hope, as Birch field and Polanyi stated. Prosperity comes from

greater interaction between states and markets. Critics should not be so quick to dismiss the old state-run

regimes, as they have valuable lessons to learn, since democracy does not come overnight, and a transition

to another form of government brings difficult conditions: But if communism is dead as an ideology and a

system of rule, its encumbering legacy continues to haunt the political and social landscape. Since the

transition was gentle, the bulk of the old nomenklatura remains, attempting at every turn, as Elemer

Hankiss puts it, to convert its old politically based privileges into new economic rights. This spectacle has


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fostered a diffuse but profound sense of injustice and tempted many to follow the radicals in demanding a

settling of accounts with officials and the collaborators who ran the repressive machinery of the old

regime. After a soft transition have come economic and social hardship and a search for those responsible

for the crimes of the past and the difficulties of the present, as cited by Rupnik (1996, 367).

4. Privatization vs. Strong State Models.Markets are only effective when there is a fine line between

businesses being profitable while reminding them of their limitations in profit-maximizing schemes. Some

aid must be given to workers while they adjust to market changes, and interest rates also must be adjusted

from time to time in order to be fair, especially in the capitalist system, which is notorious for its

exploitations, as Polanyi would say. Many experts of the Washington consensus argued that there is no

need for government intervention; they rest on the idea that the "invisible hand" will right things when they

seem to be inevitably going bad. Development itself, in their view, is "little more than the accumulation of

capital and improvements in the efficiency with which resources are allocated," cites Polanyi (2001, XIV).

However, the invisible hand only works when a system is in place to evenly balance everything and

everyone. Not only are such necessary measures as inflation adjustments needed, but subsidizing the poor

and the oppressed and new re-training methods in jobs can prove to help workers in the long run. The state

should first be allowed to take the initiative, creating sufficient infrastructure that attracts investment.

Having both the state and the market work together on achieving a singular vision allows for the

transformation of societies in which each household has the ability to produce what it needs for basic daily

survival and social reproduction into ones where market mechanisms mustoperate for households to meet

basic daily survival needs, cites Waters (2000, 615). The market, then. is obligated to follow through once

the state takes the lead early on.

5. Alternatives to Capitalistic Models.This is perhaps the beginning of some alternative solutions that are

available. Today, we realize more and more what the social ills of capitalism can do to those who struggle

the most. Privatization of all industries can make things more difficult for legitimizing businesses, and mere

privatization of everything leaves less responsibility for any one organization in addressing these social

ills of society. Capitalism may benefit many, but who is going to help those who are left out if there is no

public assistance? The early forms of capitalism show that especially without a labor market it "failed

disastrously. The laws governing such an order (the landlord and the allowance system) had asserted

themselves and manifested their radical antagonism to the principle of paternalism," cites Polanyi (2001,

84). Also, in this increasingly technological world that we live in with fast-moving markets and jobs that

seemingly change overnight, there have to be some safety mechanisms in order to prepare people for these

changes. In the rush to impose democratic incentives, the lesson of gradual transition remains steadfast,

especially post-Communism to formulating a democratic structure, here exemplified in Eastern Europe:

There are other, more pragmatic considerations that one might add to these. After a negotiated

revolution, it would have been awkward to suddenly turn against the very same roundtable partners who

allowed the nonviolent transition to occur. While the moral imperative to oust collaborators or the


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nomenklatura is understandable, it could also undermine economic efficiency. Getting rid of the old

economic officials, high-level administrators, and judges may be desirable, but who is to replace them?

Dissidents? There were not many of them, and while they were surely virtuous, they are not necessarily

qualified to manage the economy or modernize the state apparatus. For liberals, however, the most

objectionable idea is that decommunization can provide society with a kind of collective catharsis.

Communisms legacy in the structures and mentality of the society was decades in the making. The debate

about the weight of this legacy thus leads to a pessimistic vision that extends beyond the reach of moral

injunctions: the totalitarian experience soils the victim as much as it does the torturer, cites Rupnik (1996,

367-68).

England was able to withstand change during the Tudor and Stuart dynasties because of certain adjustments

that were made by the state: England withstood without grave damage the calamity of the enclosures only

because the Tudors and the early Stuarts used the power of the Crown to slow down the process of

economic improvement until it became socially bearable employing the power of the central government to

relieve the victims of the transformation, and attempting to canalize the process of change so as to make its

course less devastating, says Polanyi (2001, 40).

Job retraining programs are an excellent form of public assistance to help those in need and those people

who are left "in the dust," with seemingly no one to anchor their problems. When people are eliminated

from their jobs because of downsizing, for example, one of the biggest tragedies that comes out of this is

the fact that workers can sometimes only temporarily obtain severance pay, but overall many of them lose

their retirement benefits. This is one of the most difficult realities that we face today, and so in capitalism's

right to maximize profits, it often loses its ability to help others when it resorts to these actions in getting

rid of existing jobs that are deemed unnecessary to continue or obsolete because of emerging technology in

replacing workers. One can consider another special example in one of many of capitalism's faults. In

California some time ago, machines were invented to pick tomatoes to cut the time of having to

painstakingly go through the fields and hire people to hand-pick them. However, the efficiency of this

technology allowed many workers to be displaced because of the time saved and the smaller number of

laborers that were required to operate the machinery. The time may have been well spent in utility of costs,

but the many union workers in California saw the machines as a threat to their employment. The workers

lobbied successfully to get the machines banned so that many people that relied on picking these tomatoes

were allowed to continue without being forced out of the markets. Also, if one takes a closer look, one

realizes that if there were no unionization of workers in the state, these laborers would never be allowed to

have their jobs. Many of them are poor, uneducated, and little equipped to transfer quickly to other sectors,

and many of them come from Mexico and must provide for their families back in their home countries.

The problem is that mechanized picking had been a response to the growing strength of labor and the

organization of the United Farm WorkersMechanized picking had been availablefor some time, but

they only introduced machines into thefields whenfaced with unionization and new labor legislation,


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says Burawoy (1979, 240). A more constructive approach would have been to follow the advice of Trist

and his peers on combining the best of both worlds, such as he suggested in mining operations: Trist et

alclaim that mechanization of mining, which involves the fragmentation of work and the break-up of the

self-regulating, self-selecting work group, leads to higherstress,absenteeism, and lowerproductivity

than a system which involves the mutual adaptation of men and machines in the retention of the relatively

autonomous work group of the single-place traditionWhereas management naturally chose

mechanization to appropriate controlTrist andcompany suggest that the transition to a composi te work

organization in which miners collectively decide how and when to use machines would be more effective

As in the Western Electric studies, little attention is directed to changes in theenvironment

during the period of observation. Their claim is generalthat machines should not be designed or used

to fragment work or appropriate controlbut ratherto consolidate the responsible autonomy of the primary

work group, according to Burawoy (1979, 241).

In an era of globalization, what is the ultimate solution to prosperity throughout the world?

Capitalism certainly has gaping holes, but Polanyi believes that there can be a healthy combination of the

two opposite trends of this Washington consensus and of state-regulated markets. There are certain

parameters within which states can be enforced, and of how markets function; it is through individual

actors or societal forces, not through institutions. Corporate institutions especially are how business is

conducted daily throughout the world but societal forces shape these decisions. Firms drive needs for

global trade, but society within states promotes market changes. A state will keep functioning even if it has

no money because a state itself creates policies and can borrow if they have problems; the government is

not a corporate entity but runs a country. States promote more open trade amongst nations because firms

wish to establish business relationships in other countries, but only because societal forces encourage or

discourage these. Firms technically run the markets, but ultimately people, through the governments, are

there to set the guidelines and enforce the rules on how business is conducted. People are the ones, Polanyi

asserts, who determine, through such reforms as Social Security and the National Labor Relations Act, that

"society would decide through democratic means to protect individuals and nature from certain economic

dangers," cites Polanyi (2001, XXXVI).

One of the prevailing trends today is deregulation of international trade through

lowering of tariffs, fewer export taxes, and other forms of reducing protectionism. Polanyi strongly asserts

that institutionalizing capitalism is the worst alternative but expanding society's role in it is the key to

finding the balance between extremes of capitalism and state-dominated markets. Favoring a complete

change would not help in the search for equality, especially in Eastern Europe after Communisms demise:

The euphoria that accompanied the fall of communism has given way to disappointment, social

anomie, and the emergence of new dangers. The unity of the great mass rallies for democracy has

shattered, and wide-ranging economic hardship has overshadowed political gain for most citizens. Instead

of civil societies, one sees a splintered landscape teeming with corporatisms and resurgent communal


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loyalties, cites Rupnik (1996, 365).

For stability and balance in a society, one must set forth a system of finding markets that balance each other

and enforce a standard set of international laws based on an international societal consensus. There can be

required mechanisms, in that by lowering trade, these countries agree to do these things to make sure that

certain social ills do not come about. Exploitation is less of a problem if there is a political system willing

to enforce certain rules, like establishing environmental regulations or that there must be a standard for

minimum wage based on various economic indicators, for example. This would at least alleviate some of

the disparities if one calls for international cooperation and standards on markets. Of course, one cannot

resolve all of these societal social ills, but at least having standards and an enforcement mechanism is a

good start. Roosevelt's New Deal reforms helped to address a set of mechanisms in that they "meant that

the U.S. economy continued to be organized around markets and market activity," but also that "a new set

of regulatory mechanisms now made it possible to buffer both human beings and nature from the pressures

of market forces," according to Polanyi (2001, XXXV-XXXVI).

6. Conclusions. A free-market society, then, is not necessarily better than one that is heavily state-

influenced. Economies with many restrictions do not always provide for efficient ones either. Laissez-faire

economics tends to leave some of the underprivileged with less to work with, and industrialization is not

always the answer. In fact, one realizes that democracy and modernization do not make everything equal in

all societies:

Whatever their theoretical and political differences, both Samuel P. Huntington and Guillermo

ODonnell claim that there is a level beyond which further development actually decreases the

probability that democracy will survive. Huntington argues that both democracies and

dictatorships become unstable when a country undergoes modernization, which occurs at some

intermediate level of development. ODonnell, in turn, claims that democracies tend to die when a

country exhausts the easy stage of import substitution, again at some intermediate level. Our

finding, however, is that there is noincome level at which democracies become more fragile than

they were when they were poorer. Only in the Southern Cone countries of Latin America have

authoritarian regimes arisen at the intermediate levels of development. Four out of the nine

transitions to authoritarianism above $3,000 ($6,000 is considered stable in a nation) transpired in

Argentina. Adding Chile and Uruguay, we see that the instances in which democracy fell at

medium levels of development are to a large extent peculiar to the Southern Cone, according to

Przeworski et al. (2001, 169).

Exploitation of industry in the Third World can indeed result from a host country investing heavily with

less need to worry about restrictions, creating more problems and more disparities. Some regulation of

markets is desirable, while free markets must have some enforcement mechanism of rules to address

inequalities and alleviate some of the side effects of market transition. Polanyi was certain that


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collaboration between "governments would produce a set of agreements to facilitate high levels of

international trade, but societies would have multiple means to buffer themselves from the pressure of the

global economy," cites Polanyi (2001, XXXVI). Globalization continues to reduce barriers, but

deregulation with respect to following set policies uniformly throughout the world can help to benefit

people of all incomes more equally. Dispersing institutionalization of capitalism and promoting societal

factors can come with market reforms in addressing a healthy balance, and so striking the even scale is

perhaps most effective.

Acknowledgements. I would like to thank my old professor at Georgia Tech, Dr. Vicki Birchfield, for

inspiring me to write this article. Without her input, I would not have written this or considered presenting

it at a conference for possible future publication.

REFERENCES

[1] V. Birchfield (2005), Jos Bov and the Globalisation Countermovement in France and Beyond:

A Polanyian Interpretation, Review of International Studie, vol. 31, no. 3, pp. 581-598.

[2] J. Bodnar (1998), Assembling the Square: Social Transformation in Public Space and the Broken

Mirage of the Second Economy in Postsocialist Budapest,Slavic Review, vol. 57, no. 3, pp. 489-

515.

[3] M. Burawoy (1979), The Anthropology of Industrial Work, Annual Review of Anthropology,

vol. 8, pp. 231-266.

[4] K. Polanyi (2001), The Great Transformation, Beacon Press, Boston, MA, USA.

[5] A. Przeworski, M. Alavarez, J. A. Cheibub, and F. Limongi (1996), What Makes Democracies

Endure? Journal of Democracy, vol. 7.1, pp. 39-55.

[6] J. Rupnik (1996), The Post-Totalitarian Blues, in The Global Resurgence of Democracy, eds. L.

Diamond and M. F. Plattner, Johns Hopkins University Press, Baltimore, MD, USA, pp. 364-378.

[7] L. Sklair (1992), The Maquilas in Mexico: A Global Perspective , Bulletin of Latin American

Research, vol. 11, no. 1, pp. 91-107.

[8] T. Waters (2000), The Persistence of Subsistence and the Limits to Development Studies: The

Challenge of Tanzania, Africa: Journal of the International African Institute, vol. 70, no. 4, pp.614-652.


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11

A EFFECTIVENESS OF TECHNICAL INDICATORS - A STUDY ON CNX IT INDICES

K.Prabhakaran1and S.Nagarajan2

1Assistant Professor, RVS Faculty of Management, Coimbatore, Tamilnadu, India.

2Assistant Professor, Maharaja Prithvi Engineering College, Coimbatore, Tamilnadu, India.

ABSTRACT: There are numerous technical tools available to predict future trend of index prices. All tools

may not be effective for all the companies and at all times. The purpose of this study is to find out the

effectiveness of technical tools in predicting the index price movement. The research is based on secondary

data collected from various websites. The data is collected for two different time periods representing the

bullish and bearish seasons. The technical indicators taken for the study are Relative Strength Index (RSI),

Money Flow Index (MFI) and On Balance Volume (OBV). From the study it is found that Relative

Strength Index, Money Flow Index and On Bonus Volume are effective in predicting the index movement

CNX IT during the Bullish period and during the Bearish period, Stochastic Oscillator is deemed effective.

Key words: Technical Analysis, MFI, RSI, OBV

INTRODUCTION

Technical analysis is a method of evaluating securities by analyzing statistics generated by market

activity, past prices and volume. Technical analysts do not attempt to measure a security'sintrinsic value;

instead they look at stock charts for patterns and indicators that will determine a stock's future performance.

Technical analysis has become increasingly popular over the past several years, as more and more people

believe that the historical performance of a stock is a strong indication of future performance. The use of

past performance should come as no surprise.

People using fundamental analysis have always looked at the past performance of companies by

comparing fiscal data from previous quarters and years to determine future growth. The difference lies in

the technical analyst's belief that securities move according to very predictable trends and patterns. These

trends continue until something happens to change the trend, and until this change occurs, price levels are

predictable.

There are many instances of investors successfully trading a security using only their knowledgeof the security's chart, without even understanding what the company does. However, although technical

analysis is a terrific tool, most agree it is much more effective when used in combination with fundamental

analysis. The methods used to analyze and predict the performance of a company's stock fall into two broad

categories:fundamental and technical analysis. Those who use technical analysis look for peaks, bottoms,

trends, patterns and other factors affecting a stock's price movement and then make buy/sell decisions

based on those factors. It is a technique many people attempt, but few are truly successful at it.
http://www.investopedia.com/terms/t/technicalanalysis.asphttp://www.investopedia.com/terms/i/intrinsicvalue.asphttp://www.investopedia.com/terms/f/fundamentalanalysis.asphttp://www.investopedia.com/terms/f/fundamentalanalysis.asphttp://www.investopedia.com/terms/i/intrinsicvalue.asphttp://www.investopedia.com/terms/t/technicalanalysis.asp


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12

The world of technical analysis is huge today. There are literally hundreds of differentpatterns

andindicators that investors claim to have success with. We have tried to keep this tutorial as short as

possible. Our goal is to introduce you to the different types of stock charts and the various technical

analysis tools available to investors.

Indian Stock Exchanges are a structured marketplace for the proper conduct of trading in company

stocks and other securities. There are 24 Recognized Stock Exchanges in India, including the Over the

Counter Exchange of India for providing trading access to small and new companies. The main services of

the India Stock Exchanges all over the country are to provide nation-wide services to investors and to

facilitate the issue and redemption of securities and other financial instruments.

HISTORY OF THE STOCK EXCHANGE

The working of Stock Exchanges in India started in 1875. BSE is the oldest stock market in India.

The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock

Brokers Association, which we now know by the name Bombay Stock Exchange or BSE in short. In 1965,

BSE got permanent recognition from the Government of India.

INDEX PARAMETERS

The 30 stock Sensitive Index or SENSEX was first compiled in 1986. The SENSEX is compiled

based on the performance of the stocks of 30 financially sound benchmark companies. The NIFTY is

compiled based on the performance of the stock of 50 financially sound benchmark companies.

INTRODUCTION OF SEBI

To prevent frauds, the Government formed The Securities and Exchange Board of India, through

an Act in 1992. SEBI is the statutory body that controls and regulates the functioning of stock exchanges,

brokers, sub-brokers, portfolio managers investment advisors etc. SEBI oblige several rigid measures to

protect the interest of investors. Now with the inception of online trading and daily settlements the chances

for a fraud is nil, says top officials of SEBI.

CNX IT INDEX

Information Technology (IT) industry has played a major role in the Indian Economy during the

last few years. A number of large, profitable Indian companies today belong to the IT sector and a great

deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the

Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market

intermediaries with an appropriate benchmark that captures the performance of the IT segment of the

market.
http://www.investopedia.com/terms/p/pattern.asphttp://www.investopedia.com/terms/i/indicator.asphttp://www.investopedia.com/terms/i/indicator.asphttp://www.investopedia.com/terms/p/pattern.asp


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CHART NO - 1

PERFORMANCE OF CNX IT INDEX

STATEMENT OF THE PROBLEM

Several investors have gained as well as lost in the stock market. One way to determine the stock

price is fundamental analysis, which in turn is composed of economy, industry and company. The other

way is technical analysis, which says that the past trends will repeat in the future.

The question that arises here is how market index moving whether towards efficient or inefficient.

So that losses and gains can be estimated with the movement of the market index.

REVIEW OF LITERATUREVinothini, (2007) this study is made to find out Risk Perception and Portfolio Management of

Equity Investors. The study reveals that the investors in Erode are not aware of portfolio which would

minimize risk and maximize the return. And also it is clear that the investors in erode have low level of

understanding about risk and the importance of portfolio management as they are not aware of the portfolio

management proper steps to be taken in order to improve the awareness level in the minds of the investors.

Venkataraman (2008)suggests that Price movements do not only depend wholly in Technical

Analysis. Fundamental factors also affect the commodity market price. So, each and every investor should

think about their selling and buying the product before the investment. Day to day prices changes in

Government policies also affect the market prices. Political stability, war, depression / boom of the

economic condition will affect the market. In India, commodity market growth have been increasing day by

day awareness spread out throughout the country now ignorance of the commodity market slightly removed

by the government policies.

CNX IT

0

5000

10000

15000

20000

25000

30000

9/

1/2003

3/

1/2004

9/

1/2004

3/

1/2005

9/

1/2005

3/

1/2006

9/

1/2006

3/

1/2007

9/

1/2007

3/

1/2008

9/

1/2008

3/

1/2009

9/

1/2009

3/

1/2010

9/

1/2010

3/

1/2011

9/

1/2011

YEAR

PERFORMANCE


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Technical Indicators

Practitioners reliance on technical analysis is well documented. Frankel and Froot (1990a) noted

that market professionals tend to include technical analysis in forecasting the market. There is also a shift

away from the fundamentals to technical analysis in the 1980s, according to a survey done by Euro money

(see Frankel and Froot, 1990a). On a market level, the prevalence of technical analysis is demonstrated by

the fact that most real time financial information services, like Reuters and Telerate, provide detailed,

comprehensive and up-to-date technical analysis information. It is obvious that the frequent upgrading of

technical analysis services is a response to the demand for technical analysis services and competition

among the financial information service providers.

OBJECTIVES OF THE STUDY

To gain knowledge of the equity market and the instruments being traded in Indian stock market.

To analysis the index price movement of CNX IT.

To find out this is a suitable level to entry and exit the trade in CNX IT indices.

SOURCES OF DATA

The data employed in the study consists of Monthly indices CNX IT for the period January 2007 to

December 2011. The prices used are Monthly Open, High and Close prices. These data will be collected

from National Stock Exchange website.

PERIOD OF THE STUDY

The period of data is from January 2007 To October 2011 - (For the past 05 Years).

TOOLS USED FOR THE ANALYSIS

The following tools were used to analyze the data

1) Relative Strength Index (RSI)

2) Money Flow Index (MFI)

3) On Balance Volume (OBV)

1) RELATIVE STRENGTH INDEX (RSI)

The RSI (Relative Strength Index) is one of the most popular momentum oscillators in

Technical Analysis use today. It was introduced in a 1978 book by J. Welles Wilder. RSI helps to signal

overbought and oversold conditions in a security. The indicator is plotted in a range between zero and 100.A reading above 70 is used to suggest that a security is overbought, while a reading below 30 is used to

suggest that it is oversold. This indicator helps traders to identify whether a securitys price has been

unreasonably pushed to current levels and whether a reversal may be on the way.

The standard calculation for RSI uses 14 trading days as the basis, which can be adjusted to

meet the needs of the user. If the trading period is adjusted to use fewer days, the RSI will be more volatile

and will be used for shorter term trades.


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FORMULA

100

RSI = 100 ----------

1 + RS

Average Gain = Total Gains / n

Average Loss = Total Loss / n

Average Gain

First RS = ----------------------

Average Loss

(n=number of periods taken)

When the average gain is greater than the average loss, the RSI rises because RS will be greater

than 1. Conversely, when the average loss is greater than average gain, the RSI declaims because RS will

be less than 1. Note: if the average loss ever becomes zero, RSI become 100 by definition.

OVER BOUGHT / OVER SOLD ZONES

Wilder recommended using 70 and 30 and overbought and over sold levels respectively. If the RSI

rises above 30 it is considered bullish for the underlying stock. If the RSI falls below 70 it is a bearish

signal. Basically, the RSI is a measure of the strength of a recent trend:

RSI is considered strongly bullish if the 14-day RSI exceeds 70 this means the security has

trended up strongly over the past 14 days. Some would consider the security to be overbought at

these levels, and a potential selling point might thus be reached when the RSI exceeds 70;

If the 14-day RSI is between 50 and 70, the security has moved up over the past 14 days; however,

the uptrend has not been very pronounced;

If the 14-day RSI is between 30 and 50, the security has moved down over the past 14 days;

however, the downtrend has not been very strong;

If the 14-day RSI is below 30, the security has trended strongly lower over the past 14 days and

the RSI is considered strongly bearish. Some would consider the security to be oversold at these

levels, and an RSI reading below 30 might thus mark a potential buying point.

2) MONEY FLOW INDEX (MFI)

Money flow index was discovered by Created by Gene Quong and Avrum Soudack. Money flow

is positive when the typical price rises. This is due to buying pressure. A ratio of positive and negativemoney flow is then plugged into an RSI formula to create an oscillator that moves between zero and one

hundred. As a momentum oscillator tied to volume the money flow index (MFI) is best suited to identify

reversals and price extremes with a variety of signals.

FORMULA

Money Flow Index = 100 - (100/ (1 + Money Ratio))


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3) ON BALANCE VOLUME (OBV)

On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that

adds volume on up days and subtracts volume on down days. OBV was developed by Joe Granville and

introduced in his 1963 book, Granville's New Key to Stock Market Profits. It was one of the first indicators

to measure positive and negative volume flow. Chartists can look for divergences between OBV and price

to predict price movements or use OBV to confirm price trends.

FORMULA

If the closing price is above the prior close price then:

Current OBV = Previous OBV + Current Volume

If the closing price is below the prior close price then:

Current OBV = Previous OBV - Current Volume

If the closing prices equals the prior close price then:

Current OBV = Previous OBV (no change)

DATA ANALYSIS AND INTERPRETATION

TABLE NO-1

RELATIVE STRENGTH INDEX OF CNX IT INDEX

Date Open High Low Close MFI RSI OBV

31-Jan-07 5597.5 5626.95 5517.95 5535

14DaysMFI

14DaysRSI

12055

28-Feb-07 5301.75 5347.75 5066.65 5129.6 33835

30-Mar-07 5195.3 5218.45 5155.7 5180.7 24665

30-Apr-07 5276.05 5429.55 5275.15 5418.4 3767531-May-07 5193.85 5257 5193.85 5218.35 54534

29-Jun-07 5169.5 5203.1 5165.85 5192.3 40906

31-Jul-07 5083.85 5094.25 5015.45 5086.7 32063

31-Aug-07 4775.55 4820.1 4768.2 4813.2 23747

28-Sep-07 4790.65 4882.85 4769.45 4804.2 37254

31-Oct-07 4828.35 4833.25 4759.45 4793.65 58105

30-Nov-07 4303.3 4452.4 4303.3 4431.15 46013

31-Dec-07 4833.1 4860.95 4778.95 4812.6 37263

31-Jan-08 3850.45 3914.9 3776.75 3838.15 57679

29-Feb-08 4055.25 4060.4 3932.65 3984.5 50163

31-Mar-08 3808.65 3855.3 3650.8 3704.95 47.76814 97.84366 6307330-Apr-08 4330.35 4414.45 4284.5 4357.65 48.49776 95.52681 86057

30-May-08 4592.4 4704.35 4543.15 4688.35 54.32169 94.72053 68735

30-Jun-08 4016.75 4067.15 3977.75 3999.4 47.26411 96.44708 56640

31-Jul-08 3819.25 3819.25 3732.45 3752.85 48.20649 96.50064 76224

29-Aug-08 3827 3931.6 3827 3926.8 46.8955 96.08052 64590

30-Sep-08 2974.5 3192.25 2902.1 3107.05 52.68257 96.82001 86260

31-Oct-08 2585.7 2802.25 2585.7 2686.95 52.25253 96.93858 64613


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28-Nov-08 2322.2 2466.9 2322.2 2449.95 47.59206 97.10638 45507

31-Dec-08 2215.6 2222.65 2170 2187 54.31414 97.27191 108890

30-Jan-09 2187.35 2233.8 2167.8 2225.75 49.99398 96.96144 84857

27-Feb-09 2104.8 2105.6 2042.25 2094.1 49.4704497.69322

67125

31-Mar-09 2296 2335.6 2280.25 2318.7 47.02449 96.50041 88878

29-Apr-09 2650.2 2781.6 2650.2 2770.85 58.10048 95.84585 128481

29-May-09 3138.6 3217.55 3121.5 3206.2 57.32987 94.45218 91459

30-Jun-09 3515.05 3552.05 3480.5 3497.65 48.73239 95.27946 66224

31-Jul-09 4334.7 4374.55 4284.25 4330.05 63.645 94.1344 121581

31-Aug-09 4644.05 4649.95 4602.75 4618.35 59.40369 91.54974 85655

30-Sep-09 5043.9 5141.55 5043.9 5122.1 58.66704 88.99256 50338

30-Oct-09 5112.25 5192.3 4978.15 5048.8 63.97176 89.87646 93710

30-Nov-09 5315.8 5397.5 5309.6 5364.2 51.68352 82.32216 76696

31-Dec-09 5797.15 5843.2 5797.15 5818.4 53.90732 72.00756 96786

29-Jan-10 5554.85 5619.45 5423.45 5594.15 56.41774 71.63816 12282526-Feb-10 5787.3 5832 5724.8 5766.7 48.49711 59.98183 102392

31-Mar-10 5947.6 5967.55 5842.3 5855.95 53.31748 59.68098 86208

30-Apr-10 5947.85 6021.75 5914.7 5985.8 55.03691 49.85907 102913

31-May-10 5852.35 5852.35 5704.2 5761.95 54.48987 64.80325 121220

30-Jun-10 5877.8 5949.6 5837 5928.3 47.31266 66.49026 108234

30-Jul-10 6139.25 6144.25 6045.6 6086.85 45.69129 68.21004 97216

31-Aug-10 5936.5 5987.8 5908.7 5974.9 47.62237 74.02964 86851

30-Sep-10 6583.75 6645.55 6532.15 6613.4 39.53223 75.2478 107673

29-Oct-10 6666.45 6666.45 6554.4 6613.25 39.41648 77.13918 98630

30-Nov-10 6645 6745.65 6602.95 6703.6 48.00793 80.01624 122187

31-Dec-10 7484.8 7511.05 7436.15 7491.1 39.93218 72.3152 108568

31-Jan-11 6990.75 6995.1 6884.9 6971.25 50.53283 84.91054 122392

28-Feb-11 6688.55 6918.7 6628.05 6666.3 49.56581 89.67345 139159

31-Mar-11 7021.45 7192.35 7021.45 7148.1 49.99468 85.68589 159432

29-Apr-11 6722.8 6752.1 6680.65 6718.35 47.01354 89.75318 146204

31-May-11 6533.45 6604.4 6525.1 6538.5 48.71936 90.9945 133507

30-Jun-11 6579.05 6640.5 6558.95 6624.7 59.04396 91.14056 164744

29-Jul-11 6293.65 6356.5 6264.75 6335.1 53.73563 91.43062 140491

30-Aug-11 5407.65 5474.85 5325.45 5451.25 51.76985 94.43756 122017

30-Sep-11 5709 5771.3 5658.75 5678.9 51.99527 94.276 105643

31-Oct-11 6271.2 6333.85 6261.25 6278.7 51.94205 92.61411 91761

30-Nov-11 5814.9 5924.15 5803.45 5893.25 51.13757 94.85465 117658

30-Dec-11 6126.55 6171.55 6115.85 6139 50.13163 94.32969 107221

Note:Bolded items in the table indicate Over Bought Zones of RSI and MFI.


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CHART NO -2

RELATIVE STRENGTH INDEX OF CNX IT INDEX

CHART NO - 3

MONEY FLOW INDEX OF CNX IT INDEX

RELATIVE STRENGTH INDEX

0

20

40

60

80

100

120

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

YEAR

RSI

RSI

MONEY FLOW INDEX

0

10

20

30

40

50

60

70

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

YEAR

MFI

MFI


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CHART NO4

ON BALANCE VOLUME OF CNX IT INDEX

INTERPRETATION

RSI is considered strongly bullish in this study because it exceeds 70 mark levels in maximum

cases. This means the security has trended up strongly over the past 14 days. RSI is between 50 and 70

indicates that the security has not been hold uptrend. MFI is considered that the security moves with normal

ups and downs in 14 days MFI because the researcher could not able to find overbought zones and oversold

zones too. A rising OBV reflects positive volume pressure that can lead to higher prices. That can be

explain through high 1, high 2 (higher high), high 3 (higher high) and More buying pressure will increase

the volume that will automatically leads to increase the OBV. This is also applicable for lower lows.

FINDINGS

RSI shown maximum bullish in this research due to buying pressure.

RSI is below 30, the security has trended strongly lower over the past 14 days and the RSI isconsidered strongly bearish. But in this research the researcher could not able to find oversold

zones.

MFI is clearly shown that there is normal buying pressures because the research could not able to

find overbought zones.

The higher highs depicted bullish signals. OBI is also holding more highs and higher highs.

ON BALANCE VOLUME

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Jan-07

May

-07

Sep-07

Jan-08

May

-08

Sep-08

Jan-09

May

-09

Sep-09

Jan-10

May

-10

Sep-10

Jan-11

May

-11

Sep-11

YEAR

OBV

OBV

High 1 High 2

High 3


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This bearish difference warned stock traders that the recent price increases were lacking strong

commitment by buyers.

CONCLUSION

This study concentrated on tools such as RSI, MFI, and OBV used to find the bullish and bearish

signals. This study is to focus the forecasting of future price movements based on an examination of past

price movements. Based on the finding from this study, the researcher would say that CNX IT indices

having more bullish signals compare with bearish signals. The Investors having an option to do trading in

CNX IT and It would provide opportunities to test bullish growth. But Technical Analysis does not give

absolute predictions about the future. Instead it can be used as an anticipatory tool.

REFERENCES

[1] BallaV.K -Investment Management (Security Analysis and Portfolio Management), (11th Edition,

Tata McGraw-Hill Publication, New Delhi).

[2] Punithavathy Pandian -Security Analysis and Portfolio Management, (Vikas Publishing House Pvt

Ltd.,).

[3] Prasanna Chandra- Investment Analysis and Portfolio Management, (2ndEdition, Tata McGraw-

Hill Publication, New Delhi).

[4] Preethi Singh,-Investment Management (Security Analysis and Portfolio Management), (14th

Edition, Himalaya Publishing House, Mumbai).

[5] Raman. V.N.S Investment principles and techniques (2nd Edition, Vikas Publishing House,

New Delhi )

[6] Robert D. Edwards, John Magee Technical analysis of stock trends, 8th

Edition.

WEBSITES

[1] http://www.nseindia.com/

[2] http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators

[3] http://en.wikipedia.org/wiki/Money_flow_index

[4] http://www.investopedia.com/terms/o/onbalancevolume.asp
http://www.nseindia.com/http://www.nseindia.com/http://stockcharts.com/school/doku.php?id=chart_school:technical_indicatorshttp://en.wikipedia.org/wiki/Money_flow_indexhttp://www.investopedia.com/terms/o/onbalancevolume.asphttp://www.investopedia.com/terms/o/onbalancevolume.asphttp://www.investopedia.com/terms/o/onbalancevolume.asphttp://en.wikipedia.org/wiki/Money_flow_indexhttp://stockcharts.com/school/doku.php?id=chart_school:technical_indicatorshttp://www.nseindia.com/


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A STUDY ON HR ISSUES IN RETAIL OUTLETS IN COIMBATORE

M.G.Saravanaraj1, S.Arulsenthilkumar2and N.Punitha31Professor & Head /MBA, Muthayammal Engineering College- Rasipuram.

2Research scholar, Manonmaniam Sundaranar University, Tirunelveli.

3Executive Development, FEDUNI, Coimbatore.

ABSTRACT: Although retailing is a one of the very emerging fast growing sector in our country, Now

massive retail stores has been functioning in the nook and corner of the all across the areas for fulfilling the

customer needs under one roof Now, various well reputed organizations are very clear to setting up shop in

India; they have a passion to be closer to the customer. At this time when the countrys retail business is

going through a transformation, there is a Compelling need for those involved in retailing and those who

wish to be involved to understand this phenomenon systematically so that they can practice it perfectly.

However one of the most problematic parts in the retail industry is that of acquiring, developing and

retaining the personnel involved in the business of retail. This article has been undertaken to identify the

pertinent HR issues faced in the retail sector, with a focus on retail outlets in Coimbatore. In this Study, a

foundation to the aspect of retailing has been given, which includes Retailing in the global and Indian

scenario, retail formats, etc. Then primary data has been collected with the help of a questionnaire, with the

help of which the HR issues involved in retail have been identified. In the end suggestions and

recommendations have been provided.

Key words: Retail Transformation, Global Retail scenario, Employee Retention

Introduction to Retailing

The word retail is derived from the French word retaillier, meaning to cut a piece Off or to break

bulk. In simple words, it implies a first hand transaction with the Customer. Retailing involves a direct

contact with the customer and the co-ordination of business activities from end to end right from the

concept and design stage of a product to its delivery or after delivery service to the customer. The industry

has contributed to the financial growth of more countries and is clearly one of the very fastest growing,dynamic and wide scope industries in the world today.

Retail stores serve as communication hubs for customers and sellers commonly known as the Point of Sale

(POS) or the Point of Purchase (POP), retail stores transmit information to the Customers through

advertisements and displays. Hence the role of retailing in the Marketing mix can play a significant role to

promote the retail strategy much better to the market. Retailing that has made a significant contribution to


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the economic prosperity that we so much enjoy. Retailing is also responsible for matching individual

demands of the consumer with supplies of all manufacturers. The nations that have enjoyed the greatest

economic and social progress have been those with a strong retail sector.

.

Retailing Scenario Global

Retailing in more developed countries is big business and better organized than what it is in India.

According to a report published by McKinsey & Co. along with the Confederation of the Indian Industry

the global retail business is worth a staggering US$ 6.6 trillion.In the developed world, most of it is

accounted for by the organized retail sector. For Instance, the organized retail sector has gone upto 80%

share of retail sales in the United States. The corresponding figure for Western Europe is 70% whilst it is

50% in Malaysia and Thailand, 40% in Brazil and Argentina, 35% in Philippines, 25% in Indonesia and

15% in South Korea. In China it remains a paltry 10%.

On the Global Retail Stage, little has remained the same over the last decade. The global Economy has

changed, consumer demand has shifted, and retailers operating systems today are infused with far more

technology than was the case six years ago. Saturated home markets, fierce competition and restrictive

legislation have relentlessly pushed major food retailers into the globalization mode. Since the mid-1990s,

numerous governments have opened up their economies as well, to the free markets and foreign investment

that has been a plus for many a retailer. However, a more near-term concern has been the global economic

slowdown that has resulted from dramatic cutback in Corporate IT and other types of capital spending.

Consumers themselves have become much more price sensitive and conservative in their buying,

particularly in the more advanced economies.

The growth of multiple chain retailers has been ruthless for many years in the west and this has been

accompanied by the development of retail names as brands in their own right. Discount retailer Walmart

has catapulted to the top of the Fortune 500 rankings in the U.S. ahead even of oil major Exxon Mobil and

the mammoth manufacturing giant General Electric. A relentless policy, of, Always Low prices. Always.

has brought Walmart to the top.

Walmart and Nordstrom in the U.S. and Sainsburys and Marks & Spencer in the U.K. Have grown by

rapid geographic expansion in their own countries. Specialists like Benetton of Italy and IKEA of Sweden

and The Body Shop of the UK are international and the fast food chains like McDonalds and Pizza Hut are

everywhere. The same Products are increasingly available from the same names on every continent.

Retailers Worldwide have immensely benefited from the sustained growth of the disposable income of their

global consumers.


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The service sector accounts for a large share of GDP in most developed economies. The retail sector forms

a very strong component of the service sector. Hence, the Employment opportunity offered by the industry

is immense. According to the US Department of Labor, about 22 million Americans are employed in the

retailing industry in more than 2 million retail stores. As long as people need to buy, retail will generate

employment. Globally, retailing is customer centric with an emphasis on innovation in products, processes

and services. In short, the customer is King!

Retailing Scenario India:

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized

sectors, India retail industry is one of the fastest growing industries in India, especially over the last few

years. Though initially, the retail industry in India was mostly unstructured, however with the change of

expectations and preferences of the consumers, the industry is getting more utilizing these days and getting

organized very well. With emerging market demand, the industry is expected to grow at a pace of 25-30%

annually.

In the Indian retailing industry, food is the most important sector and is growing at a rate of 9% annually.

The well reputed food industry is trying to enter the India retail market and transform Indian consumers to

well equipped branded food. Since at present 60% of the Indian grocery basket consists of non- branded

items. India has the largest population in the world. Most of them are independent and contribute as much

as 96% in total retail sales. Because of the decreasing number of nuclear families, working women, greater

work pressure, Migrating to cities, increased commuting time and convenience has become a priority for

Indian consumers. They want everything under one roof for easy accessibility and induce to know better of

every things their choice. This offers an excellent opportunity for organized retailers in the country who

amount for just 2% of the estimated US $180 billion worth of goods that are retailed in India every year.

This figure is equivalent to the turnover of one single US based retail chain, Wal-Mart.

Growth of Indian Retail

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail

industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion

and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in

India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has

further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the

current size of US$ 7.5 billion.

The growth and development of organized retailing in India is driven by two main factors Lower prices and

benefits the consumers cant resist. At the US India Business Summit in collaboration with Price water

house Coopers the following details were ReleasedIndia is rapidly evolving into a competitive market with


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potential target consumersin the niche and middle class segments. The market trends indicate fabulous

growthopportunities. Global majors too are showing keen interest in the Indian retail market.

Over the years, international brands like Marks & Spencer, Samsonite, Lacoste,McDonalds, Swarovski,

and Dominos among a host of others have come into India through the franchise route following the

relaxation of FDI. Large Indian companieslike the Tata, Goenka, Aditya birla, reliance, pantaloon, RPG

Group and Piramal groupsare investing heavily in this industry.

Today retailing provides jobs to roughly 15% of employable Indian adults, and is the largest contributor to

Indias GDP after agriculture. The growth potential of the industry is such that in the next ten years nearly

one million new jobs will be created in the organized retail sector alone. (Source: Business Executive (Dec-

Jan 2001)).

Considering such opportunities, one needs to take a look at the organizations and Institutes offering retail

education and training in India. At present there are but a few like Institutions offering Retailing courses for

their students this trend has to change, while the first few steps towards sophisticated retailing are being

taken, the biggest task for organized retail organizations is to locate and recruit Qualified, knowledgeable,

skilled and Trained staff to handle their operations.

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail

industry is the most promising emerging market for investment. In 2007, the retail trade in India had a

share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also

expected to reach 22% by 2010.According to a report by North bride Capita; the India retail industry is

expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the

total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the

total retail market.

The Future of Retail Industry in India

The retail industry in India is currently mounting at a great pace and is expected to go up to US$ 833 billion

by the year 2013. It is further predictable to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As

the country has got a high growth rates, the consumer expenditure has also gone up and is also expected to

go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a

result, the India retail industry is expected to grow further in the future days. By the year 2013, the

organized sector is also expected to grow at a CAGR of 40%.

India retail industry is progressing well and for this to continue retailers as well as the Indian government

will have to make a combined effort.


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Review of literature

A review of various literatures available would help in providing me with a better Understanding of the

various information involved in the retail function and their relation to the people oriented nature of the

business.

Source: Vedamani Gibson (2006). Retail Management Functional Principles and Practices. Jaico

Publishing House, Mumbai.

Title:Manpower planning in a department store

Following rapid growth in business volumes, a department store recruited 150 permanent Employees to

cover its working hours from 10:00 a.m. to 8:30 p.m. The store which had an area of 50,000 sq. ft. works

seven days a week. Manpower planning in a free access department store is done according to factors like

sales volumes and value planned per salesperson, floor area covered by a salesperson, number of customers

attended per day, or a combination of these. The idea is to optimize business operating results. The store

has a rush of customers on weekends from Friday to Sunday. Further the store experiences heave sales

during the weekend. In retail, manpower planning takes into account the number of staff needed at different

times of the day. It looks at the possibility of range of shift lengths not exceeding the statutory 8 hours

rather than rigid fixed shifts which would mean employing more people. The store however feels that with

its growing business there are less staff to serve customers, especially during weekends and busy hours.

Efficient manpower planning takes into account the impact of part timers and overtime to meet short term

peaks in demand. It uses weekenders in times of dire necessity. This store has not been following this

practice. The organization also fears that the commitment of such weekenders and part timers would be

very low.

Source: www.rediff.com

Title: HR factor in retail, largely ignored by Rajendra K Aneja, CEO, Switz Group and former MD,

Unilever, Tanzania

The mood in India these days is "Goodbye, Socialism. Welcome, Sonyism". But the Sudden explosion of

retailing emphasis the principal challenge confronting Indian retailers in the coming decade: staffing

operations and motivating teams. The lacks of formal retailing education further embitter the problem of

recruiting. How should retailers build human relations in retail management? The first ingredient is

infusing a passion for success in employees. If the staff are the

Employees of the company, rather than outsourced from agencies, there will be greater Commitment.

Further, retailers should make every employee a partner through a stock options scheme. A watchman who

knows that he has a stake in the final profits, in the form of a bonus or

a stock option, will ensure zero levels of shrinkage. Remember, businessmen must share their wealth with

those who generate it.


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Get the basics right

Retailing is a hard business. It is rigorous. The floor staff stands on its feet for up to nine Hours every day.

The job of the salesperson on the floor is physically exacting and emotionally draining. This is why

changing existing mindsets and motivating personnel will also require Ensuring basic hygiene factors. It is

crucial to provide toilets, restrooms, canteens and Dining areas, as well as recreation rooms to the staff.

Also, in a competent retail organization, each employee should spend at least 10 working days a year in the

classroom. Training of the staff is the best investment in the retail business. Training has to be constant, in

the classroom and on the floors, on a daily basis. Business schools should come together to pioneer a new

curriculum for master's degree in retail management. Next to training is the vital policy of building careers

and promoting people from within the company. Internal progression systems augment loyalty and boosts

morale.

Respect the floors

In a customer service-oriented retail outlet, the supervisory staff, managers, directors or the chairman of the

company will walk the floors. They will also seek advice and customer responses from the staff. As Sam

Walton, the best retailer of our times, once said, "Our best ideas come from the shop floors.

Looks do matter

Retailing is about the staff wearing clean, ironed uniforms. It is about shaving daily, using the right type

and the right amount of deodorant; it is about bright eyes and warm Smiles, about polished shoes, no straps

showing through the uniform and no hairy Armpits. These are fundamental hygiene factors, but they can

make or break a sale. It is a smart Move to recruit the grooming and communications staff from top five-

star hotels to train Retail staff.

Family ties

Working in any company should be fun and rejuvenating. The staff should look forward to coming to work

daily. This is possible when the team spends informal times together. Winning is great fun, becoming rich

is glorious, and it is vital to celebrate success together. If the employees of a retail company dance, sing,

eat, rejoice together, the company stays together.

Opinion the article lays emphasis on the importance of imparting retail education in a bid to groom

individuals and making them more receptive to the idea of pursuing a career in retail. Further it outlines the

need to motivate employees constantly and providing them with adequate facilities. It also states the need

to honor viewpoints and suggestions of the frontline sales staff.


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Objectives of the study

To understand the role and importance of HR in the retail business.

The focus would be to identify the recent HR issues faced by retail organizations.

The objective would also be to develop suitable HR strategies for the prevalent HR

Issues in retail business.

To analyze the employees opinions about the policies of Retail Industry

Research Methodology

Type of researchA combination of both exploratory and descriptive research would be Used.

Exploratory research often relies on secondary research such as reviewing available literature and/or data,

or qualitative approaches such as informal discussions with consumers, employees, management or

competitors, and more formal approaches through in-depth interviews, focus groups, etc.

Descriptive research, describes data and characteristics about the population or Phenomenon being studied.

Descriptive research answers the questions who, what, Where, when and how.

Research MethodThe qualitative and survey method would be used in this study.

Types of dataPrimary as well as secondary data would be used in the project.

Data gathering procedureThe various techniques adopted for gathering data would be:

Questionnaires

Interviews

With store employees

With the managerial level personnel in organizations

Research techniquesThe various techniques used in the research process would be:

Questionnaires

Direct interview

Observational study

Sampling details

Sample sizeA sample size of 120 would be taken for the survey.

Sample descriptionThe sample chosen for the purpose of the research would be the

Frontline sales personnel, managerial personnel and persons associated with apex Industrial bodies.

Sampling techniques - The sampling technique used in the study would be Simple

Random Sampling.


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Scope of the study:

The study covers all aspects of identifying the HR issues faced in the retail sector with special

reference to select outlets.

The study covers to know about the retail industry in the aspect Manpower planning.

Limitations of the study:

Time constraint is a limitation in the project as only limited organizations can be contacted.

The credibility of the information shared by the respondents.

Data analysis and Interpretation:

Table 1: Showing opinions about Gender and Job satisfaction

Null Hypothesis (H0) : There is no significant relationship between gender and level of job

satisfaction.

Alternative Hypothesis (H1) : There is close significant relationship between gender and job satisfaction

CHI - SQUARE TEST

Calculated 2value = 0.102

Degree of Freedom = 2Table value = 5.991

Result = Significant at 5% level

INFERENCE

It is found from the above table that calculated value is less than the table value at 2 degree of freedom. So,

Null hypothesis (H0) accepted hence it is concluded that there is no significant relationship between gender

and level of job satisfaction.

Table 2: Showing opinions about Age and working Environment

GenderLevel of Job Satisfaction

Total percentageLow Medium High

Male 25 35 15 75 63

Female 15 22 8 45 37

Total 40 57 23 120 100

Sl. No. Particulars 18 -25 25-35 >35 Total Percentage

1 Highly satisfied 11 10 6 27 23

2 Satisfied 17 15 4 36 30

3 Average 11 8 5 24 20

4 Dissatisfied 9 7 3 19 16

5 Highly Dissatisfied 7 5 2 14 11

6 Total 55 45 20 120 100


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Null Hypothesis (H0) : There is no significant relationship between Age and Working Environment.

Alternative Hypothesis (H1): There is close significant relationship between Age and Working

Environment.

Calculated Chi- Square (2) Value = 1.997

Level Of Significance = 0.05

Degrees Of Freedom = 8

Table Value = 15.507

Inference:It is found from the above table that calculated value is less than the table value So, Null

hypothesis (H0) accepted hence it is concluded that there is no significant relationship between age and

Working Environment.

Table 3: Showing opinions about Age and welfare Facilities

Null Hypothesis (H0) : There is no significant relationship between Age and Welfare Facilities

Alternative Hypothesis (H1): There is close significant relationship between Age and Welfare Facilities





Inference:It is found from the above table that calculated value is less than the table value at 2 degree of

freedom. So, Null hypothesis (H0) accepted hence it is concluded that there is no significant relationship

between age and Welfare Facilities.

Sl. No. Particulars 18-25 25-35 >35 Total Percentage

1 Highly satisfied 8 7 3 18 15

2 Satisfied 13 11 7 31 23

3 Average 19 17 5 41 38

4 Dissatisfied 5 3 2 10 8

5 Highly Dissatisfied 10 7 3 20 16

6 Total 55 45 20 120 100


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Table 4: Showing opinions about Age and Remuneration Facilities

AGE WISE


1 Highly satisfied 18 13 5 38 30%

2 Satisfied 17 15 8 40 33

3 Average 13 12 5 30 24%

4 Dissatisfied 5 4 2 11 10%

5 Highly Dissatisfied 2 1 0 3 3%

6 Total 55 45 20 120 100

Null Hypothesis (H0) : There is no significant relationship between Age and Remuneration Facilities

Alternative Hypothesis (H1): There is close significant relationship between Age and Remuneration

Facilities





Inference: It is found from the above table that calculated value is less than the table value So, Null


Remuneration Facilities.

Table 5: Showing opinions about Age and Work time

AGE WISE


1 Highly satisfied 12 9 4 25 21%

2 Satisfied 29 26 11 66 55%

3 Average 11 7 3 21 18%

4 Dissatisfied 2 2 1 5 4%

5 Highly Dissatisfied 1 1 1 3 2%

6 Total 55 45 20 120 100

Null Hypothesis (H0) : There is no significant relationship between Age and Work Time

Alternative Hypothesis (H1): There is close significant relationship between Age and Work Time


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Table Value = 15.507s

Inference: It is found from the above table that calculated value is less than the table value So, Null


Work time

Findings

Male workers are working more in Retail Sector

18 to 25 Age group peoples working more in Retail Sector

Level of Job satisfaction is Average.

23% peoples highly satisfied their working Environment.

15% peoples are highly satisfied their Welfare facilities

38% peoples are averagely satisfied their Welfare facilities

30% peoples are highly satisfied their salary.

Level of salaries at par with other industry.

57 % peoples satisfied their Work time.

Suggestions

Working in a retail sector more so at the frontline level. The job must be given the Due

prominence it deserves and people must be made to understand that they are not merely selling but

servicing customers.

With regards to Working Environment and Welfare facilities, which are probably the first of

the HR functions, it must be borne in mind that business forecast and performance standards are

foremost. They are the key areas because without the business forecast you will not be able to

recognize the need for manpower in future and if Performance standards are set then it would be

easy for the employees to work efficiently.

Compensation must be reviewed regularly and employees must be paid at Competitive rates.

Further a certain component of their remuneration must be Merit based so as to motivate them to

perform better.


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Attrition is a concern in the retail industry. However, by ensuring competitive Pay, well motivated

staff, facilities and benefits, career paths and growth charts, Etc the same could be controlled to a

large extent.

With the advent of several players in the retail sector both Indian and International, the HR

personnel must ensure that employees are motivated, trained to handle their jobs better, paid at

competitive rates, given adequate rest hours to Prevent exhaustion, etc.

Conclusion

Given the nature of business, the frontline sales staff in a retail enterprise are truly the brand ambassadors

of the company i.e. their employer. It is this frontline staffs who is in direct contact with the customer and it

is they who can make or lose a customer. However the role of the middle and top management people are

equally important as it is they who make the frontline staff prepared to handle their job. Recruiting the right

person with the right attitude will determine the success of retailing. Integrity is of paramount importance.

It is also important to reward employees for Achieving better results. Managing personnel in a retail

environment demands unique, specialized skills. Soft skills are required in addition to academic

qualifications. Retail is a dynamic industry and makes a lot of demands on the personnel involved in the

business. Therefore they need intensive training and motivation. The focus should move to being more

meticulous Retail is Detail. Each customer haste be delivered a Moment of Magic and the HR

department has to ensure that retail employees are trained to deliver those Moments of Magic.

Bibliography

[1] Edwin. B. Flippo Principles of Personnel Management, McGraw Hill Kogusha Company

Limited, Tokyo, sixth edition1998.

[2] Kothari. C.R. Research Methodology Methods and Techniques, Wishwa Prakashan, second

edition1990.

[3] Mamoria C. B.Personnal Management, Himalaya Publishing House, Bombay,41992.

[4] Pradhan Swapna (2nd edition). Retailing Management Text and Cases.

[5] Stephen. P. RobbinsOrganizational Behavior, ninth edition by prentice hall.

[6]

Tripathi - Personnal Management and Industrial Relations, Sultan Chand and Sons, New Delhi,

Twelfth Edition1996

[7] Vedamani Gibson (2006). Retail Management Functional Principles and Practices. Jaico

Publishing House, Mumbai.

[8] http://www.jstor.org

[9] http://www.workthing.com


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ANALYSING THE VOLATILITY OF NSE INDICESEMPRICAL STUDY

V.Prabakaran1and D.Lakshmi Prabha2

1Assistant Professor/

2L

Documents

IDEAS ON POLANYI’S MARKETS