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International Journal of Business Management

&

Research

(A Bi-Annual Journal)

ISSN: 2249-2143

Volume 5, No. 2, July-Dec, 2015

-

An official publication of University School

of Business Management Desh Bhagat

University Amloh Road, Mandi Gobindgarh

Fategarh Sahib-147301 Punjab, INDIA

Year of Publication: 2015

© Desh Bhagat University

Disclaimer:

The views & opinions expressed and interpretations made in the Journal are solely of respective authors and should not be attributed to Desh Bhagat University. The editor disclaim all for any responsibility injury to persons or property resulting from any ideas or product or practices referred in papers published in the Journal. All effects have been made to ensure accuracy, but the editors or DBU not be held responsible for any remaining inaccuracies or omissions.

International Journal of Business Management & Research

EDITORIAL BOARD

Patron Editor-in-Chief Dr. Zora Singh Dr. G.S. Gohtra Chancellor, Desh Bhagat University Director University School of Management Desh Bhagat University

ASSOCIATE EDITORS

Dr. Rohit Markan Dr. Payal Bassi Associate Professor, Assistant Professor University School of Management, University School of Management Desh Bhagat University Desh Bhagat University

ADIVSORY BOARD Prof. (Dr.) R.K Uppal Prof. (Dr.) Deepak Tandon Professor, Professor of Finance, Department of Economics, Lal Bahadhur Institute of Management & Technology, DAV College, Malout, Punjab New Delhi

Prof. (Dr.) BishnuPriya Mishra Prof. (Dr.) Pardeep Singh Walia

Professor of Finance, Professor, Department of Commerce, Uttkal University, Bhubaneswar, Post Graduate Government College for Girls, Odisha Chandigarh Prof. (Dr.) Navkiranjit Kaur Dhaliwal Professor, Department of Commerce, Punjabi University, Patiala

INTERNATIONAL JOURNAL OF BUSINESS MANAGEMENT & RESEARCH – A BI-ANNUAL JOURNAL (ISSN 2249-2143)

Contents Page No.

1. Socio-Economic Development in India- A Study of SBI & its Associate Banks Dr. Rajni Saluja ……1

2. Ethics and Corporate Culture Sakshi Verma & Shagun Bansaal …….9

3. A Study of Stress Among Students of Private Professional Institutes of Mandi Gobindgarh, Punjab Kirti Sharma & Dr. Payal Bassi …….15

4. An Analysis of the Marketing Scope of Gold Loan of India Infoline Finance Limited Umar Farooq …….30

5. Emergence of Knowledge Economy- A Comparative Study of BRICS Nations Dr. Rajni Saluja …….39

INTERNATIONAL JOURNAL OF BUSINESS MANAGEMENT & RESEARCH (ISSN 2249-2143)

IJBMR, Vol. 5, No. 2 (July-Dec), 2015 Page 1

Socio-Economic Development in India- A Study of SBI & its Associate Banks

Rajni Saluja Assistant Professor, University School of Management, Desh Bhagat University, Mandi Gobindgarh

Abstract

Banks have become harbingers of socio-economic development. Banks are not just storehouses of the country’s

wealth but are the reservoirs of resources necessary for economic development. The State Bank of India is the biggest commercial bank in whole of Asia. SBI plays a pivotal role in the sphere of establishing an egalitarian society. For this purpose, it has amended its lending policies in such a way as to provide adequate availability of credit to neglected sectors of the economy and to those who do not have access to credit. SBI’s contribution to process of

economic development is based upon social justice. The present paper deals with role played by SBI & its Associate Banks in socio-economic development of the country. The study is secondary based and analytical in nature. The time period of the study is from 2001-02 to 2009-10. Statistical and mathematical tools such as mean, standard deviation, coefficient of variation and compound annual growth rate (CAGR) are calculated. The contribution of SBI and its Associate banks is analysed on basis of its contribution in financing of agriculture, financing of small enterprises, priority sector advances, advances to weaker section. The study concludes that SBI & its Associates are actively engaged in socio-economic development of the country. SBI serves as pioneer in many areas of social welfare. Growth rate in financing of agriculture, small enterprises, priority sector advances, and weaker section is favourable.

Keywords: Socio-Economic Development, Priority sector Advances, SBI

Introduction

Today, banks are not only providers of money and credit but are harbingers of social and economic changes. A magnificent role played by banks in socio-economic development of the country cannot be denied. They are regarded as ‘magna carta’ of the economy. Banking is the

nerve centre of trade, industry and agriculture. Agriculture production has risen steadily and progress of industrialisation has increasingly played a role in India’s economic development.

Banking and development are interrelated. Bank credit proves to be remedy for all economic ills.

Since the inception of banking in India, remarkable transformation took place in its functioning. Today, banks have become from mere agent between borrowers and lenders to provide of customer centric services. The key driver of any sector of the economy is availability of adequate credit. Social and Economic Aspect of banking came into limelight with the nationalisation of banks in 1969. The State Bank of India is the biggest commercial bank in the whole of Asia. State Bank of India has made remarkable progress since its inception. It has made tremendous progress on all fronts in order to achieve the goals. One of the main objectives of the State Bank of India as set out in the preamble to the Act was “extension of banking facility on a large scale, more particularly in the

rural and semi-urban areas”. To achieve this objective, the SBI launched branch expansion programme and opened not less than 400 branches during the five years of its inception. During the five decades of its existence, SBI has gracefully fulfilled its pioneering role in the area of development banking. During the five decades of its existence, SBI has gracefully fulfilled its pioneering role in the area of development banking.



The bank’s scheme of special assistance to small scale industries introduced in the late 1950’s and

agricultural lending in the early 1960s were a forerunner to the concept of priority sector lending. The State Bank of India plays a pivotal role in the sphere of establishing an egalitarian society. For this purpose, it has amended its lending policies in such a way as to provide adequate availability of credit to neglected sectors of the economy and to those who do not have easy access to credit. SBI’s contribution to process of economic development is based upon social justice. As

per socio-economic environment of India, SBI is paying more attention to under-developed and neglected sector of the economy. It contributes towards removal of large number of socio-economic problems such as the removal of poverty, creation of more employment opportunities and removing inequalities in income distribution.

Objectives of the Study

To analyse contribution of SBI and its Associates towards socio-economic development.

To highlight green initiatives undertaken by SBI.

Research Methodology & Database

The present study is secondary based and analytical in nature. The study covers time period from 2001-02 to 2009-10. The data is collected from publications of Reserve Bank of India such as Statistical Tables Relating to Banks in India and Reports on Trends and Progress of Banking in India. Annual reports of State Bank of India are also referred to. The study is analysed on basis of contribution of SBI & its Associates towards financing of agriculture, financing of enterprises, priority sector advances, advances to weaker section. Statistical and mathematical tools such as mean, standard deviation, coefficient of variation and compound annual growth rate (CAGR) are calculated.

Analysis & Interpretation

An analysis of contribution of SBI & its Associates towards socio- economic development is done under following heads:

Financing of Agriculture Agriculture is the key occupation of the country. Development of the country largely depends on agriculture. Commercial banks plays key role in financing of agriculture. State Bank of India being premier banking institution in the country was pioneer in the field of agriculture financing. Distribution of outstanding advances to agriculture is given in table 1. In case of Public sector banks average distribution of outstanding Advance to Agriculture is Rs. 178747.33 Cr of which share of State Bank Group is Rs. 56540.11 Cr and Nationalized Banks is Rs. 122229.56 Cr. Contribution of State Bank of India to agriculture in average terms is Rs. 38564.22 Cr. Standard deviation is higher in case of Public sector banks indicating high variability and less in case of State bank group indicating more uniformity. Among Associates of SBI, it is low in case of State Bank of Saurashtra indicating high degree of uniformity and it is high in case of Sate Bank of



Hyderabad indicating more variability. Coefficient of variation indicates a fair level of consistency in distribution of outstanding advances to agriculture. Growth rate analysis indicates that in case of Public sector banks comes to be 27.02 per annum during the last decade and in case of Nationalized Banks is 26.93 and in case of State Bank Group is 27.21. This indicates that growth rate is higher in case of State Bank of India and comes to be 28.60. Among Associates of SBI, highest growth rate is observed in case of State Bank of Mysore and comes to be 30.98. Hence growth rate is favourable among all groups of banks. Growth rate is most satisfactory in case of State Bank of Mysore and satisfactory in case of State Bank of India, State Bank Group, Nationalized Banks and Public sector Banks.

Table 1: Distribution of Outstanding Advances to Agriculture (Rs. Cr)

Source: Statistical Tables Relating to Banks in India, RBI, Mumbai, Various issues Financing of Small Enterprises

Financing of small scale enterprises was the first activity which the State Bank started after establishment for expanding the scope of its operations to include priority sector. The financing schemes of Banks are so designed as to help the small units in their working and also to expand their size. Over the years, the Public sector Banks including Nationalized Banks and State Bank

Group has been providing financial assistance to small scale industries with growing emphasis on assisting village and cottage industries. Distribution of outstanding advances to small enterprises is given in table 2. In case of Public sector Banks average distribution of outstanding advances to small enterprises is Rs. 115375.33 Cr. of which share of Nationalized Banks is Rs. 80710.67 Cr and that of State Bank Group is Rs. 34664.67 Cr. Contribution of State Bank of India to small enterprises in average terms is Rs. 22524.67 Cr and that of Associates of SBI is Rs. 13251.22 Cr.

Year/ Bank SBI Associates

of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 12561 6145 942 1056 766 502 1435 803 641 18706 39436 58142

2002-03 15871 7912 1181 1521 953 783 1785 850 839 23783 49724 73507

2003-04 16993 9457 1376 1604 1196 866 2278 973 1164 26451 59646 86097

2004-05 20526 12770 2147 1896 1666 1228 2891 1210 1732 33296 79179 112475

2005-06 30516 17117 2889 2973 2157 1658 3515 1502 2423 47633 106881 154314

2006-07 41661 21759 3755 3799 2645 2181 4491 1937 2951 63419 141672 205091

2007-08 56432 26126 4590 5148 3018 2911 4574 2195 3690 82558 166128 248685

2008-09 69279 26511 4828 6648 3343 3839 5040 - 2813 95790 202147 297937

2009-10 83239 33986 6039 8516 4120 4123 8058 - 3130 117225 255253 372478

Mean 38564.22 17975.89 3083.00 3684.56 2207.11 2010.11 3785.22 1352.86 2153.67 56540.11 122229.56 178747.33

SD 25774.74 9692.59 1821.22 2595.76 1160.06 1345.12 2050.01 546.59 1097.17 35314.46 74586.00 109839.25

CV 66.84 53.92 59.07 70.45 52.56 66.92 54.16 40.40 50.94 62.46 61.02 61.45

CAGR 28.60 24.26 27.60 30.13 23.80 30.98 21.84 19.97 23.81 27.21 26.93 27.02



Standard deviation is higher in case of Public sector banks indicating high variability and less in case of State Bank Group indicating more uniformity. Among Associates of SBI it is low in case of State Bank of Saurashtra indicating high degree of uniformity and it is high in case of State Bank of Patiala indicating more variability. Coefficient of variation in case of Nationalized Banks and Public sector Banks is 72.98 and 66.97 respectively indicating more variability and less consistency. In case of State Bank of India, coefficient of variation is 46.44 which indicate more consistency and less variability. Growth rate in case of State Bank of India is 15.99 and in case of Associates of SBI is 19.97. Among the Associates of SBI, the growth rate is highest in case of State Bank of Indore (32.06). This shows that growth rate is most satisfactory in case of State Bank of Indore, more satisfactory in case of Nationalized Banks and less satisfactory in case of SBI and its Associates and Public sector Banks. It can be concluded that growth rate in case of all groups of banks is favourable in case of financing of small enterprises. Growth rate is most satisfactory in case of State Bank of Indore, more satisfactory in case of Nationalized Banks and less satisfactory in case of SBI and its Associates and Public sector Banks.

Table 2: Distribution of Outstanding Advances to Small Enterprises (Rs. Cr.)

Year/Bank SBI

Associates of SBI

SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 16129 5448 955 917 586 665 978 777 570 21577 32690 54267

2002-03 12393 5641 1111 969 712 562 881 772 634 18034 34953 52987

2003-04 13033 16246 1207 1091 800 547 1092 785 724 19279 38999 58278

2004-05 14865 7135 1418 1245 959 645 1121 925 822 22000 45634 67634

2005-06 18489 8684 1680 1476 1231 808 1323 1239 927 27173 55319 82492

2006-07 22816 10270 1948 1661 1334 1057 1643 1510 1117 33086 71617 104703

2007-08 28046 16836 2912 2888 2703 1783 3328 1503 1719 44882 103769 148651

2008-09 34777 20281 2875 3279 4791 2213 4643 - 2480 55057 135911 190968

2009-10 42174 28720 4580 5442 4555 2476 7805 - 3862 70894 207504 278398

Mean 22524.67 13251.22 2076.22 2107.56 1963.44 1195.11 2534.89 1073.00 1428.33 34664.67 80710.67 115375.33

SD 10460.58 7877.83 1180.92 1507.87 1658.95 757.94 2354.56 338.25 1100.73 18494.60 58898.99 77264.96

CV 46.44 59.45 56.88 71.55 84.49 63.42 92.89 31.52 77.06 53.35 72.98 66.97

CAGR 15.99 19.97 20.53 24.23 32.06 22.60 30.35 14.44 25.82 18.54 26.02 23.57

Source: Statistical Tables Relating to Banks in India, RBI Mumbai, Various issues Priority Sector Advances

The objective of providing assured financial support to priority sector was institutionalised with the nationalization of the leading commercial banks in 1969 and 1980. The formal definition of

‘Priority Sector’ came into existence in 1972 when retail trade, small business, professional and self- employed persons and education loans were also declared as priority sector in addition to small scale industries, agriculture and allied agricultural activities and transport operators. Now housing has also been brought under the priority sector. According to the benchmark laid down by the RBI, at least 40 percent of the net bank credit of the bank should be to the priority sector, 18 percent to agriculture and 10 percent to the weaker section of the society as a part of the priority



sector. The bank has been all along making sincere efforts to achieve the benchmark for priority sector advances. Distribution of total advances to priority sector is given in table 3. Advances to priority sector in case of Public Sector Banks in average terms are Rs. 450616.22 Cr. and in case of Nationalized banks is Rs. 306623.78 Cr and State Bank Group is Rs. 143992.56 Cr. Average figure in case of State Bank of India is Rs. 97071.11 Cr and Associates of SBI is Rs. 46921.33 Cr. Standard deviation is higher in case of Public sector banks indicating high variability and less in case of State bank group indicating more uniformity. Among Associates of SBI, it is low in case of State Bank of Saurashtra indicating high degree of uniformity and it is high in case of State Bank of Hyderabad indicating more variability. Coefficient of variation shows fair level of consistency among Public sector banks, Nationalized Banks and State Bank Group. Growth rate Analysis indicates that growth rate in case of Public sector banks is 22.98, in case of Nationalized banks is 23.10 and that of State Bank Group is 22.75. Growth rate in case of Nationalized Banks is higher as compared to Public sector banks and State bank group. Growth rate in case of State Bank of India comes to be 22.91 and in case of Associates of SBI is 22.44. Among Associates of SBI the highest growth rate is in case of State Bank of Mysore (26.12). This indicates that growth rate is most satisfactory in case of State Bank of Mysore and satisfactory in case of State Bank Group, Nationalized Banks and Public sector Banks. It can be concluded that growth rate in case of priority sector advances is favourable among all groups of banks. It is most satisfactory in case of State Bank of Mysore and satisfactory in case of State Bank Group, Nationalized Banks and Public sector Banks.

Advances to Weaker Section

Weaker section precisely includes Scheduled Castes and Scheduled Tribes, small and marginal farmers, landless labourers and beneficiaries under the Swaranjayanti Gram Swarozgar Yojana and DRI scheme. Advance to weaker section in average terms in case of Public sector Banks is Rs. 93890 Cr and in case of Nationalized Banks is Rs. 60365.04 Cr and State Bank Group is Rs. 33524.95 Cr. Average figure in case of State Bank of India is Rs. 23638.84 Cr and in case of Associates of SBI is Rs. 13586.10 Cr. Standard deviation is higher in case of Public sector banks indicating high variability and less in case of State bank group indicating more uniformity. Among Associates of SBI, it is low in case of State Bank of Saurashtra indicating high degree of uniformity and it is high in case of State Bank of Hyderabad indicating more variability. Coefficient of variation is indicative of fair level of consistency among State Bank Group, Nationalized Banks and Public sector Banks. Growth rate Analysis shows that growth rate in case of Public sector banks is 29.51, in case of nationalized banks are 29.00 and in case of State bank group is 30.52. It indicates that growth rate is slightly higher in case of State Bank Group.

Growth rate in case of State Bank of India is 31.03 and Associates of SBI is 15.51. Among Associates of SBI, highest growth rate is in case of State Bank of Hyderabad (36.34). It indicates that growth rate is most satisfactory in case of State Bank of Hyderabad and satisfactory in case of State Bank of India, Nationalized Banks and Public sector Banks and low in case of Associates of SBI.



Table 3: Distribution of Total Advances to Priority Sector (Rs. Cr.)

Year/Bank SBI Associates of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 40325 17214 2550 3203 1982 1674 3459 1891 2455 57539 113944 171483

2002-03 51407 26512 4131 4560 3146 2303 5601 2341 4430 77919 167663 245582

2003-04 43709 20839 2913 3942 2459 2018 4127 1992 3388 64548 138549 203097

2004-05 62673 33817 5327 6134 4083 3323 6104 2912 5934 96491 214239 310729

2005-06 82895 45574 6970 8767 5190 4493 8550 3638 7966 128469 281322 409791

2006-07 110373 56397 8421 11295 6153 6063 10310 4523 9632 166770 354411 521180

2007-08 133202 66369 10373 12727 7753 6960 11656 4875 12025 199571 409391 608963

2008-09 160892 71640 11122 14788 10052 8688 13779 - 13211 232532 487235 719767

2009-10 188164 83930 13277 18965 10183 9314 17931 - 14260 272094 592860 864954

Mean 97071.11 46921.33 7231.56 9375.67 5666.78 4981.78 9057.44 3167.43 8144.56 143992.56 306623.78 450616.22

SD 54072.22 23983.19 3821.69 5452.75 3105.89 2904.27 4820.97 1206.51 4388.20 77866.66 166304.00 244086.61

CV 55.70 51.11 52.85 58.16 54.81 58.30 53.23 38.09 53.88 54.08 54.24 54.17

CAGR 22.91 22.44 23.30 25.44 23.65 26.12 21.90 18.53 24.88 22.75 23.10 22.98

Source: Statistical Tables Relating to Banks in India, RBI, Mumbai, Various Issues.

Table 4: Distribution of Advances to Weaker Section ( Rs. Cr)

Bank/Year SBI Associates

of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 7052 3386 440 771 297 461 767 230 421 10438 18537 28975

2002-03 6644 36999 532 616 391 507 929 259 466 10344 21960 32304

2003-04 9572 4027 577 489 417 572 1251 228 493 13598 27990 41589

2004-05 19732 5467 1088 777 497 843 1489 248 525 25199 38293 63492

2005-06 19883 7170 1527 529 710 1057 2220 419 709 27053 51321 78374

2006-07 21717 9456 2114 1954 1540 1540 321 727 1260 31173 63112 94285

2007-08 28467 14742 2388 3410 1879 1772 2917 665 1711 43209 83726 126935

2008-09 43597 17787 2709 4602 2164 2185 3323 - 2804 61384 105459 166843

2009-10 56085 23241 5077 5368 2224 2580 4545 - 3447 79326 132888 212214

Mean 23638.84 13586.10 1827.87 2057.44 1124.19 1279.64 1973.55 396.45 1315.08 33524.95 60365.04 93890.00

SD 16842.17 11067.77 1480.63 1918.37 815.67 777.03 1388.29 215.77 1124.16 23853.29 39824.49 63562.84

CV 71.25 81.46 81.00 93.24 72.56 60.72 70.34 54.43 85.48 71.15 65.97 67.70

CAGR 31.03 15.51 35.38 36.34 33.50 26.57 20.32 23.30 33.11 30.52 29.00 29.51

Source: Report on Trend & Progress of Banking in India, RBI, Mumbai, various issues

Green Banking Initiatives of the Bank

Being a responsible Corporate Citizen of the country, the Bank has adopted a Green Banking policy with an objective of contributing towards the fight against adverse climatic changes. The policy envisages two pronged approach to address the issue that:

(i) To reduce the Bank’s own carbon footprint.

(ii) To senitise the Bank’s clients to adopt low carbon emission practices.



As part of the Bank’s operations, the Bank has initiated several measures which include switching

over to energy efficient lighting systems, installation of energy savers, efficient water management system, waste disposal and tree plantations etc.

Education Partnership with the Municipal Corporation of Greater Mumbai

The Municipal Corporation of Greater Mumbai has launched a project to transform and upgrade the outcome of education in schools run by the Municipal Corporation. The Bank has agreed to support this project as a partner for a period of 2 years as this project may evolve as a model for replication across the country. The project has the following objectives:

Improvement in student attendance from 50-60 percent to 90 percent. Reduction in drop-out rates especially at upper primary level. Enabling at least 30-50 percent of the children to speak English comfortably. At least 20percent of secondary school children getting strong vocational training. At least 20 percent of parents being highly involved in the child’s learning. Creating infrastructure of the right quality in each school.

Education Loans With an increase in the number of students opting for higher studies in India and abroad. Education loans have grown at 34.62 percent YOY ( as on March 2010). SBI has extended 4,33,789 Cr. educational Loans with a total exposure of Rs. 8,907 crores (as on March 2010). Currently SBI is the market leader in Education Loans with a market share close to 25 percent. SBI believes in contributing towards the future of India and the youth that will be the face of India in coming years. Conclusion

It can be concluded that SBI and its Associates have strong and widespread network of branches even in rural and semi-urban areas. SBI and its Associates are actively engaged in socio-economic development of the country. SBI serves as pioneer in many areas of social welfare. Growth rate in financing of agriculture, small enterprises, priority sector advances, and weaker section is favourable. SBI has also contributed remarkably to poverty alleviation and employment programme. It is also engaged in providing assistance for health, education etc. It is also involved in environment protection and green banking.

References

Rao Ramachandra KS , Das Abhiman, Singh Arvind Kumar, “ Commercial Bank Lending

to Small-Scale Industry”, Economic & Political Weekly, Vol. XLI, No. 11, March 2006,

pages. 1025-1033. Joshi Deepali Pant, “Social Banking Promise, Performance and Potential”, Foundation

Books, New Delhi, 2006. Sahu Bihari Gagan & Rajasekhar D, “Banking Sector Reform and Credit Flow to Indian

Agriculture”, Economic & Political Weekly, Vol. XL, No. 53, Dec-Jan, 2005-06, pages. 5550-5559.



Sisodiya Amit Singh & Rao N Janardhan, “Spotlight: State Bank of India”, Chartered

Financial Analyst, Vol. 10, No. 11, 2004. Aparna T, “State Bank of India: Flying High”, Chartered Financial Analyst, Vol. 8, Issue.

9, September 2002, pages. 60-61. Shajahan KM, “Priority Sector Bank Lending- Some Important Issues”, Economic &

Political Weekly, October 17-24, 1998. Reserve Bank of India, Report on Trends and Progress of Banks in India, Various Issues,

Reserve Bank of India, Mumbai. Reserve Bank of India, Statistical Tables Relating to Banks in India, Various Issues,

Reserve Bank of India, Mumbai. SBI, Annual Reports of State Bank of India, various issues.



Ethics and Corporate Culture

Sakshi Verma & Shagun Bansaal

M.Com (4th semester), Department of Commerce, A.S.College, Khanna

Abstract Ethics is all about rules governing the in which determine what is right or wrong, good or bad? Corporate culture is a system of shared assumptions, values and beliefs, which governs how people behave in organization. The challenging era has raised the need to study the relationship between both. The purpose of the research is to study the extent to which ethics and corporate culture relates with each other and how they varies between different organisations at global level. This study has been conducted with the help of secondary data obtained from books, journals and internet. It consists of qualitative basis of information. It was found that ethics and corporate culture has a very indispensible role in the success of a organization and helps business to stand in competition. Also the culture, values and ethics of the organization varies organization to organization. Keywords: Corporate culture, Ethics Introduction

In the era of globalisation, there is a cut throat competition among the organizations. To survive in this type of competitive environment and to grow, the companies face various moral issues and challenges. Human assets are the sine-quo-non of the progress for a company. So, the companies need to manage their human resources efficiently and with humanly behavior where the ethics, values and organization culture plays a great role. This paper studies the possible relationship between ethics and corporate culture. How they impact each other and the necessity of presence of them in any organization. This paper will focus on corporate culture as it is often considered to be both a source of various problems and the basis for solutions and is certainly a factor that determines how people behave in an organization.

Employees who belong to different cultures work in the MNCs. Now here it becomes a challenging task for management to manage these cross-cultural aspects. The role of management is to act as a role model for the employees and can also directly influence the behavior and culture. Of course there are better methods that management can use to incorporate ethics into the corporate culture or increase the likelihood that its employees will act ethically. The researchers have studied the ethics and corporate culture in different countries such as Sweden, Germany, Japan, Yugoslavia and United Kingdom (U.K).

Objectives of the Study To study the relationship between ethics and corporate culture To study the varying ethics and corporate culture in Yugoslavia, Sweden, Japan, German

and United Kingdom.

Relationship between Ethics and Corporate Culture Organisation Culture A culture is a way of life of a group of people--the behaviors, beliefs, values, and symbols that they accept, generally without thinking about them, and that are passed along by communication and imitation from one generation to the next. Culture is symbolic communication. Some of its symbols include a group's skills, knowledge, attitudes, values, and motives. The meanings of the



symbols are learned and deliberately perpetuated in a society through its institutions. Corporate culture is a system of shared assumptions, values and beliefs, which governs how people behave in organization. These shared values have a strong influence on the people in the organization and dictate how to dress, act and perform their jobs.

Five Pillars of Organisation Culture

Accountability: an environment that promotes transparency and is responsible for results. Competition : an environment that encourage a passion for winning. Fun : an environment that is enthusiastically engaged. Active Learning : an environment that encourage personal and professional development. Gratitude : an environment that expect each person to be thankful for life’s

experiences and to win with others, not at their expenses.

Ethics

Ethics is all about rules governing the in which determine what is right or wrong, good or bad? Our actions and decisions explain our ethics that we follow. How an individual performs his profession and performs his job tells about the ethics. Ethics may vary from person to person as it depends upon the psychological setup. It is a subjective topic. The Golden Rule or law of reciprocity is the principle of treating others as one would wish to be treated. It is a maxim of altruism seen in many human religions and human cultures. The maxim may appear as either a positive or negative injunction governing conduct:

One should treat others as one would like others to treat oneself (positive or directive form). One should not treat others in ways that one would not like to be treated (negative or

prohibitive form). What you wish upon others, you wish upon yourself (empathic or responsive form). Definition

‘Ethics is knowing the difference between what you have a right to do and what is right to do’ (Potter Stewart)

https://en.wikipedia.org/wiki/Maxim_(philosophy)



Code of Ethics

Code of ethics refers to the guidelines which drives the associates towards achieving organisations’ mission and vision. An organization’s code of ethics can be defined as “a statement

setting down corporate principles, ethics, rules of conduct, codes of practice or company philosophy is concerning responsibility to employees, shareholders, consumers, the environment, or any other aspects of society external to the company”. RFRNC Organisation Values

Values are your core beliefs and principles. They define why you carry out your mission, the way you do and help develop strategic objectives and work plans

To grow in their jobs and careers the employees need to have a god environment with a positive culture. An organization with an ethical culture provides a culture that promotes ethical behavior among the members of the organization. Unethical behavior is any activity by a member of an organization that does not conform to the standards set by the culture of that organization.

The positive and negative culture of the organization is affected by two aspects: the strength of the culture and the content of the culture. Strong culture means it has values and standards that are clearly defined and understood by the majority of its members. A strong culture has a greater impact on the behavior of the members of an organization than a weak culture, which has vague and inconsistent guidelines.

Positive and ethical cultures have rules and boundaries that encourage innovation by their members and discourage uncontrolled competition and a win-at-all-costs approach to achieving organizational goals. Managers of organizations with positive and ethical cultures try to help their



employees learn how to become better at their jobs and are concerned with how goals are achieved by the members of their organization; they do not only focus on results. RFRNC Impact of Ethics on Corporate Culture

Repulsion from penalities – following proper norms in the organisation facilitates the advantage of avoidance of fees, fines and penalities.

Robust decision making - appropriately following the ethics reduces the risk of wrong decision to the manager’s sop that they may find ethical solutions to their dilemma.

Competitive advantage – implementing ethics in the organizational culture boosts the profits and goodwill of the organisation which stimulates the investors to be loyal with the company which gives it competitive advantage.

Boost employee’s commitment– when a company forms a ethical culture, the employees feel attached and an essential part of the company. They become ready to sacrifice their individual goals and focus on company’s goals a whole.

Serve to the society – By paying proper taxes, providing value for money and maintaining ecological balance, the organisations serves to the society as well.

The Other Side of the Coin

Business ethics reduce a company's freedom to maximize its profit. For example, a multinational company may move its manufacturing facility to a developing country to reduce costs. Practices acceptable in that country, such as child labor, poor health and safety, poverty-level wages and coerced employment, will not be tolerated by an ethical company. Improvements in working conditions, such as a living wage and minimum health and safety standards reduce the level of cost-savings that the company generates. However, it could be argued that the restrictions on company freedom benefit wider society.

Ethics and Corporate Culture in Different Countries SWEDEN (Western Europe) Culture

• It has been renowned for its industrial PEACE. • Disputes are normally settled between employers and workers. • They are egalitarian in nature and humble. • They speak softly and calmly. • Due to strong leaning towards egalitarianism in Sweden, COMPETITION is not

encouraged. Ethics & Values

The union membership is higher in Sweden than in any other Western European countries. The unions in Sweden have always shown their willingness to accept a high level of

responsibility for the national economy. This attitude shows the remarkable record of Industrial Peace in Sweden.



YUGOSLAVIA Culture

• They believe in the principles of Self-Management • Thus a balance between freedom and responsibility. • Trade unions are responsible for vocational training, political, educational, social and

culture uplift and social security of workers. • Workers participation in Management.

Ethics& Values • Principle of Integration followed in enterprises, as workers shows their interest. • Workers has right to choose their environment conditions and material benefits, but only in

relation to his responsibilities. • Reward system.

JAPAN (Country in East Asia) Culture

• Most of the Japanese companies make no difference between their staff and labor, nor between blue and white collared employees.

• Both management and workers move forward collectively, and accept each other equal partners.

• There is neither ethnic problem nor struggle among the different religious groups. • There has been a marked decrease in the number of labor disputes. • Workers have Union to represent their fair interests and bargain collectively with

management on working conditions. Ethics & Values

Labor and Management should not be hesitating to take up any matters for discussion. Promotion on Merit basis. Provide opportunities to young workers.

UNITED KINGDOM Culture

• Collecting Bargaining. • They generally, welcome changes and are not afraid of making mistakes. • Picketing is the common tactic used by trade unions during strikes. • Pragmatic approach.

Ethics & Values Etiquette behaviour of workers. They love Teamwork. Punctuality. Mangers usually socialize with its subordinates.



GERMANY (Western Europe) Culture

• Labor council & Work council. • German Management is consensual; managers avoid litigations and prefer to focus on

labor interest and good labor relations. • Time is Money for Germans. • Germans Work Fewer Hours But Produce More. • Goal Oriented and Direct Communication is valued. • They unwelcome the sudden changes in the working environment. • Germans are considered as Master of Planning.

Ethics & Values

High Quality and Innovation Orientation. Loyalty in German companies is very high. Continuous investment in Human resources in the form of vocational training.

Conclusion

In nutshell, it can be concluded that if company wants to escalate their performance it must follow the ethics and corporate culture with full zeal and zenith. The companies at international levels teach the others how to keep their associates satisfied and achieve success.

References

http://www.ethical-perspectives.be/viewpic.php?TABLE=EP&ID=374 https://en.wikipedia.org/wiki/Golden_Rule https://www.tamu.edu/faculty/choudhury/culture.html Singh, J. B. 2011. Determinants of the effectiveness of corporate codes of ethics: An

empirical study. In Journal of Business Ethics. 2011, vol. 101, issue: 3, s. 385–395. ISSN: 1573-0697.

http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-10414.html http://www.commisceo-global.com/country-guides/sweden-guide http://www.antiessays.com/free-essays/A-Guide-For-Foreing-Manager-In-95565.html http://www.monografias.com/trabajos98/life-customs-and-philosophy-of-swedish-

people/life-customs-and-philosophy-of-swedish-people.shtml https://www.coursehero.com/file/p537283/In-many-ways-Swedes-prefer-to-listen-to-

others-as-opposed-to-ensuring-that/ https://www.researchgate.net/profile/Stefan_Felder/publication/230564268_Which_patient

s_do_I_treat_An_experimental_study_with_economists_and_physicians/links/0deec52122402180cf000000.pdf?origin=publication_detail

http://www.ethical-perspectives.be/viewpic.php?TABLE=EP&ID=374

https://en.wikipedia.org/wiki/Golden_Rule

https://www.tamu.edu/faculty/choudhury/culture.html

http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-10414.html

http://www.commisceo-global.com/country-guides/sweden-guide

http://www.antiessays.com/free-essays/A-Guide-For-Foreing-Manager-In-95565.html

http://www.monografias.com/trabajos98/life-customs-and-philosophy-of-swedish-people/life-customs-and-philosophy-of-swedish-people.shtml

http://www.monografias.com/trabajos98/life-customs-and-philosophy-of-swedish-people/life-customs-and-philosophy-of-swedish-people.shtml

https://www.coursehero.com/file/p537283/In-many-ways-Swedes-prefer-to-listen-to-others-as-opposed-to-ensuring-that/

https://www.coursehero.com/file/p537283/In-many-ways-Swedes-prefer-to-listen-to-others-as-opposed-to-ensuring-that/

https://www.researchgate.net/profile/Stefan_Felder/publication/230564268_Which_patients_do_I_treat_An_experimental_study_with_economists_and_physicians/links/0deec52122402180cf000000.pdf?origin=publication_detail





A Study of Stress among Students of Private Professional Institutes of Mandi Gobindgarh, Punjab

*Kirti Sharma **Payal Bassi * Research Scholar, University School of Management, Desh Bhagat University, Mandi Gobindgarh **Assistant Professor, University School of Management, Desh Bhagat University, Mandi Gobindgarh

Abstract

As life is becoming more and more time pressed and every individual is under pressure to perform better and achieve more has created an unwanted pressure among people of all age groups. To study the stress level of the students in the Professional and Secondary level institutes. . In the present study, Random Probabilistic (Stratified Random Sampling) sampling technique has been adopted. The Sample size has been restricted to 200 students (i.e. 100 from each Under graduate and Post Graduate Classes) keeping in mind the research objectives and constraints. The distribution of sample units in the various specified areas has been there in the two different Colleges of Desh Bhagat University namely School of Ayurveda and School of Nursing. The Study concluded Students of Ayurveda are more stressed than those of School of Nursing as and have to face greater challenges in terms of their career advancement, settlement in life professionally. It is therefore that they are experiencing forgetfulness, anger, frustration and anxiety. Keywords: Stress Management & Students

Introduction

Stress is the most common and an indispensable part of all human beings. There is no individual who does not have any stress though the concern of stress may vary from individual to individual. As life is becoming more and more time pressed and every individual is under pressure to perform better and achieve more has created an unwanted pressure among people of all age groups. Stress results in several challenges to individuals internally as well as physically. Stress by and large is of two type’s viz.: eustress or as distress where former is considered as good stress while later is known as bad stress

Stress can wreak havoc on both your body and your mind, contributing to everything from irritability, heartburn, and tension headaches to chronic depressions, heart disease and possibly even cancer. While you can’t eliminate all stress, you can get rid some of it and you can certainly

learn to better control your physical, mental and emotional response to the rest.

Sources of Stress among students

Stress has become a common factor in our fast paced and complex society. These days’ people

face stress related to family, work, finance, competition, academics, etc. Schafer (1996) , Fisher (1994), Altmaier, (1983) ,Greenberg &Valletutti, (1980) in their surveys have mentioned that there exists a strong relationship between Stress and College students. They mention experience of stress in humans is universal but reaction to stressors entirely depends upon how sensitive an individual is. Stress has an effect on people’s behavior, communications and efficiency. Students

often get isolated and get irritated faster due to stress. The major source of stress is the pressure to get good grades, good placements, completion of home assignments, uncomfortable classrooms, attitude of peer group, quality of relations with friends and parents, interpersonal factors,



Intrapersonal factors, academic factors and environmental factors, etc. Joseph Loizzo (2012)mentions leaving home, managing finances, personal apperaence, living with roommates, handling conflicts, dating relationship, career choices, values challenged by others are few of the sources of stress.

Objectives of the Study

To study the stress level of the students in the Professional and Secondary level institutes.

To study the effect of stress on the efficiency of the students studying in Private Professional institutes.

Hypothesis

There is not any significant difference in the stress level among the students studying in different Private Professional Institutes

There is no association between the stress level and the efficiency of the students studying in Private Professional institutes.

Research Methodology

This study is based on a limited sample size in Mandi Gobindgarh city in Fatehgarh Sahib District of Punjab so that there could be comprehensive study comprising mainly Under Graduate and Post Graduate students. The sample unit is students of Desh Bhagat University as an individual Private Professional Institute in the above said Private Professional Institute. In the present study, Random Probabilistic (Stratified Random Sampling) sampling technique has been adopted. The Sample size has been restricted to 200 students (i.e. 100 from each Under graduate and Post Graduate Classes) keeping in mind the research objectives and constraints. The distribution of sample units in the various specified areas has been there in the two different Colleges of Desh Bhagat University namely School of Ayurveda and School of Nursing.

For the above said study, a questionnaire/scale has been prepared for students studying at under Graduate and Post Graduate level students of School of Ayurveda and School of Nursing at Desh Bhagat University. That questionnaire/scale has been used to collect the data through personal contact i.e. survey method. The response was measured on 5-point scale. The method is based on Likert scaling technique. The Likert technique consists of a series of statements to which one responds using a scale of possible answers, Strongly Agree (5), Agree (4), Indifferent (3), Disagree (2), Strongly Disagree (1), and the scores can be vice-versa also.

Factors Causing Stress among students in Private Professional Institutes Stress is the most common factor in the people of all age groups. It has different repercussions in different age group. The level of stress in an individual determines the impact of its distress. In College going students stress has emerged as the latest topic and has attracted interest of lot many researchers. In a report by BU Today (2015) on “Anxiety and Depression” among College students it is

announced that Mental health has become a critical issue on college campuses. Here at BU,



Behavioral Medicine clinicians report that the number of students in crisis coming in for help has more than doubled—from 290 in the 2010–2011 academic year to 647 last year. And the number of students needing medical transports for psychiatric evaluation has also risen, from 68 in the 2010–2011 academic years to 120 last year. The same survey found that 21.8 percent of students said that within the last 12 months, anxiety had affected their academic performance, defined as receiving a lower grade on an exam or important project, receiving an incomplete, or dropping a course. That’s up from 18.2 percent in the ACHA’s 2008 survey. Meanwhile, 13.5 percent

reported that in the last 12 months, depression had affected their academic performance, up from 11.2 percent in 2008.

It is also observed that the students suffering from stress greatly shows the common symptoms like depression, anxiety, poor academic performance, feeling hopeless, developing pessimistic approach, attempt to suicide, taking drugs, etc. Keeping in mind the objectives of study, the students were asked several questions in order to develop an understanding regarding factors of stress in the selected sample.


In today’s era of growing competitiveness stress is most commonly being observed in Educational industry. With the advent of private professional institutes the increasing pressure on students to score 99.9 % or 100% and to be all- rounder is creating lot of stress among students.

Table 1: Challenges faced by students due to stress

Facing the problem of

forgetness, anger, frustration

and anxiety

School of Nursing School of Ayurveda

Yes 83 97

No 17 3

Total 100 100

Source: Primary Survey, 2014

Table 1 shows the response of respondents from School of Nursing and Ayurveda regarding the various challenges (forgetness, anger, frustration and anxiety) faced by them during their life. Out of the Total 100 respondents from each School it is reported that 83 of the students face these

Challenges in School of Nursing while 17 respondents are stress free. In School of Ayurveda 97 respondents have faced such kinds of Challenges while 3 respondents in the chosen Sample are stress free.



Table 2: Students lose their temper too easily with my family and friends


Table 2 depicts the response of students regarding if they easily lose their temper with their family and friends. It is discovered that out of 100 respondents from School of Nursing 78 respondents mentioned yes that they easily lose their temper with their friends and family while rest of the 22 students responded that they don’t lose their temper with family and friends. However in School

of Ayurveda 63 respondents replied that they lose their temper easily with friends and family whereas 37 respondents responded that they don’t have such habit. During discussion students

also mentioned that this kind of behavior is generally during the time of pressure (family pressure, work pressure, assignment work, inability to perform well in class or Exams, career advancements, etc.)

Table 3: Adequacy of Academic performance


Table 3 describes the response of students regarding their Academic performance in Class. Out of 100 respondents from School of Nursing 97 respondent’s responded that their Academic

performance is well, while 3 respondents admitted that their Class performance is not very well.

However in School of Ayurveda 93 respondents mentioned that their academic performance is well whereas 7 respondents reported that they are not very effective in Academics. When enquired about the measurements of their performance they mentioned that they are able to score first Grade in their Class and are not having any Back log in their results.

Losing my temper too

easily

School of

Nursing

School of

Ayurveda

Yes 78 63

No 22 37

Total 100 100

Academic performance in your

class is adequate

School of

Nursing

School of Ayurveda

Yes 97 93

No 3 7

Total 100 100



Table 4: Availability of time for leisure activities

When enquired about the response of respondents towards availability of leisure time, the respondents responded differently and the thus received responses are mentioned in Table 4 From Table 4 it gets clear that 58 respondents from School of Nursing students do not get any time for Leisure activity at all, followed by 24 respondents who said they get time for leisure activities and 18 respondents sometimes gets time for leisure activities. However in School of Ayurveda 71 respondents feel they do not get time for leisure activity, followed by 24 respondents’ gets time for leisure activities and 13 students sometimes gets time for leisure activities respectively.

Table 5: Students get Sound Sleep


Table 6 shows the responses of chosen respondents regarding presence of stress in their lives. 63% of respondents from School of Nursing experience stress to some extent, followed by 33% respondents experience stress to a greater extent and 4% respondents responded that have negligible stress. However in case of School of Ayurveda 46% respondents experience stress to a great extent, followed by 42% respondents experiencing stress to some extent and 12% of respondents responded that they have negligible stress. Whereas among both the Schools there is not even a single respondent from chosen respondent who is stress free, however they behave differently when under stress.

Time for leisure activities

School of

Nursing

School of Ayurveda

Yes 24 16

No 58 71

Sometimes 18 13

Total 100 100

Sound Sleep

School of

Nursing

School of Ayurveda

Yes 96 92

No 4 4

Sometimes 0 4

Total 100 100



Table 6: Realization of Stress


Table 7: Factors responsible for Stress

Factors responsible for Stress

School of Nursing

School of Ayurveda

Impossible standards 4 13

Working in changed circumstances 33 13

Experiencing peer insecurity 17 15 Poor Grades 6 9

Too much study pressure 13 29

Too heavy workload 27 21 Total 100 100


Table 7 depicts the various factors that are responsible for determining stress among students. It is observed that 33% of respondents from School of Nursing have stress due to the changed working conditions. Here changed working conditions mean that they have to go to different places for Training, so they have pressure of the place of training. 27% respondents responded that they have too heavy workload, 17% respondents experience stress due to insecurity in the relations with peers, 13% respondents experience believe too much pressure of studies build lot of pressure on them, 6% respondents from School of Nursing believe that poor grades is the major cause of

Realization of Stress

School of

Nursing

School of Ayurveda

To Great Extent 33 46

To Some Extent 63 42

Negligible 4 12

Not At All 0 0

Total 100 100



stress among them and 4% respondents believe that they have to meet impossible standards in the terms of deliverables from education and career commitment so that’s the main cause of their

stress. The respondents from School of Ayurveda mentions that too much study pressure is the main reason of stress contributing to 29% respondents, followed by 21% respondents are stressed due to too heavy work load, followed by 15% respondents experience stress due to peer insecurity, followed by 13% respondents gave equal weightage to impossible standards and pressure to work in change working conditions and 9 % respondents reported that poor grades is the main cause of stress among them.

Table 8: Nature of stress

Effects of stress on you School of Nursing

School of Ayurveda

Mental Stress 62 78 Physical Stress 38 22 Total 100 100

Table 9 shows that how do students realize that they are stressed out. Out of the 100 chosen respondents from School of Nursing, 21% respondents mentioned that when they are stressed out they have less energy than usual, followed by 19 % respondents mentioned that they over – react and get frustrated with people around them, 16% respondents responded that they lose their control, followed by 13 % respondents mentioned that they feel miserable and dull when they are stressed, followed by 12 % respondents responded that they overeat and 2 % respondents prefer to stay alone and 7 % respondents responded that they argue.

However from School of Ayurveda 26% respondents mentioned that they prefer to stay alone when they are stressed, followed by 17% respondents feel miserable and dull when they are stressed out, followed by 16% respondents experience less energy than usual, followed by 13 % respondents overeat during the time of stress, followed by 12 % respondents mentioned that they over – react and get frustrated with people around them, followed by 9% respondents responded that they lose their control and 7 % respondents responded that they argue.

Table 10 shows the response of School of Nursing and School of Ayurveda students regarding their discomfort to stress in terms of diseases. In School of nursing 37% respondents experience headache followed by 20% for angina, followed by 17% for fatigue, followed by 13% gat prone to ulcers, and followed by 7% for dull aches & pains and 6% other problems respectively. However in case of School of Ayurveda 42 % respondents suffer from headaches, 27% feel fatigue, and 17% experience angina, 6 % for dullness and 3 % experience any other disease respectively.



Table 9: Realization that you are stressed out

Realization that you are stressed out

School of Nursing

School of Ayurveda

Over-react and get frustrated with people 19 12 Argue 7 7

Feel miserable and dull 13 17

Have less energy than usual 21 16

Loose your control 16 9 Overeat 12 13

Prefer to Stay alone 12 26 Total 100 100


Table 10: Number of diseases you are suffering or have suffered in recent past


Number of diseases you are suffering or have suffered in recent

past

School of Nursing

School of Ayurveda

Headache 37 42 Dull Aches & Pains 7 6

Fatigue High/ Low Blood Pressure 17 27 Ulcers 13 5 Angina 20 17

Any Other 6 3 Total 100 100



Table 11: Regarding College relationships; do any of the following cause you problems

Table 11 describe the relationship of student and Faculty as the source of stress among College youth. In School of Nursing it is mentioned that 45 respondents out of the total of 100 respondents often get stressed due to poor faculty relations, followed by 38 respondents sometimes get stressed due poor relations with Faculty and 18 respondents never get stressed due to poor Faculty student relationship. However in case of School of Ayurveda, 57 respondents out of the total of 100 respondents often get stressed due to poor faculty relations, followed by 34 respondents sometimes get stressed due poor relations with Faculty and 9 respondents never get stressed due to poor Faculty student relationship.

Table 12: Poor relations with Classmates


Table 12 describe relationships with Classmates as the source of stress among College youth. In School of Nursing it is mentioned that 70 respondents out of the total of 100 respondents often get stressed due to poor relations with Classmates, followed by 24 respondents sometimes get stressed due poor relations with Faculty and 6 respondents never get stressed due to poor Faculty student relationship. However in case of School of Ayurveda, 64 respondents out of the total of 100 respondents often get stressed due to poor faculty relations, followed by 28 respondents sometimes get stressed due poor relations with Faculty and 8 respondents never get stressed due to poor Faculty student relationship. From the above mentioned data it can be easily identified that the Classmates have closely knitted relationship with each other and any friction or issue amongst them creates stress among students.

Poor relations with Classmates

School of Nursing

School of Ayurveda

Never 6 8 Sometimes 24 28 Often 70 64 Total 100 100

Poor relations with Faculty

School of Nursing

School of Ayurveda

Never 18 9

Sometimes 38 34

Often 44 57

Total 100 100



Table13: Harassment and/or discrimination as a source of stress


Table 13 shows that harassment and / or discrimination results in stress among students. 64 respondents out of the total of 100 respondents from School of Nursing responded that harassment and / or discrimination often leads to stress whereas 36 respondents mention that harassment and/ or discrimination sometimes leads to stress. However in case of School of Ayurveda 83 respondents out of the total of 100 respondents from School of Nursing responded that harassment and / or discrimination often leads to stress whereas 17 respondents mention that harassment and/ or discrimination sometimes leads to stress.

From the above mentioned data it is very clear that the respondents of both the Schools believe that harassment or discrimination of any kind surely leads to stress among students and breaks the normal routine of individual.

Table 14: Have you ever done Meditation


Table 14 depicts the response of chosen respondents regarding practicing of Meditation. From School of Nursing 47 respondent had practised Meditation and 53 respondents had never done Meditation earlier. However in School of Ayurveda only 37 respondents had practised it while 63 respondents never did meditation.

During the survey it is also discoverer that out of the students who have practised Mediation was just as the part of Workshop either at School level or during Art of Living workshop. Maximum students responded that they are not able to practise yoga regularly due to lack of time. But at the same time they also mentioned the time when they practised Meditation was very good as they were more active during those Sessions.

Harassment and/or discrimination

School of Nursing

School of Ayurveda

Never 0 0

Sometimes 36 17

Often 64 83

Total 100 100

Willingness to practice

meditation regularly

School of

Nursing

School of

Ayurveda

Yes 100 100 No 0 0 Total 100 100



Table 15: Willingness to practice meditation regularly


Table 15 describes the response of chosen respondents regarding their willingness to practise meditation regularly. From School of Nursing as well as School of Ayurveda 100% respondents are willing to practise meditation regularly.

It is due to the fact that everyone was aware of the benefits of Mediatisation but they were not practising it regularly. The reasons were few did not get time, few were not able to get up early and rest were not able to practise it as they were not aware of how to do it. However everyone showed a positive response that Meditation should be practised regularly as it is very beneficial for people of each and every age group. Moreover very few respondents were practising it on regular basis.

When the set of respondents were asked if they felt any improvement in handling stress after practising mediation, their response is registered in table 16. The responses were registered on the Likert 5 point scale ranging from strongly agree, agree, neutral, disagree and strongly disagree. Most of their response was positive as respondents mentioned they are able to handle stress better and that too without getting anxious. When they were asked regarding whether after practising Meditation they are able to find a solution to a problem by applying all possible approaches, 46 % of respondents agreed to this, followed by 24% respondents who strongly agreed, followed by 17 % respondents disagreed and 13% respondents were neutral towards this. Further when asked about do they try to analyse the solution in the light of wrong or right decision, 47 % respondents strongly agreed, followed by 34 % respondents who agreed, followed by 12 % respondents with neutral response and 7 % respondents disagreed to this.

When enquired about whether after meditating regularly if difficult situations still make them upset, 34 % respondents disagreed, followed by 13 % respondents who agreed, followed by 16 % respondents with neutral response, followed by 13 % respondents who agreed and 6 % respondents strongly agreed. Most of the respondents 53% positively reverted that they strongly agree to the statement that they are less bothered by things now, followed by 27 % respondents who agreed, followed by 10 % respondents who agreed, followed by 6 % respondents who disagreed and 45 neutral responses.

When enquired about after regular meditation they are able to concentrate better and stay focused to these 63% respondents agreed, followed by 21% respondents who strongly agreed, followed by 10% neutral responses, followed by 4% respondents replied as they disagree and 2% respondents

Have you ever done Meditation

School of Nursing

School of Ayurveda

Yes 47 37 No 53 63 Total 100 100



who strongly disagree. 46% respondents mentioned after meditation they are less depressed, followed by 40% strongly disagreed responses, followed by 11% neutral respondents and 3 % agreed responses.

Table 16: Response of respondents from School of Nursing regarding stress handling after Meditation

Sr. No.

Statements Strongly Agree

Agree Neutral Disagree Strongly Disagree

1 When you have a problem to solve, you solve it calmly 20 47 21 12 0

2 When you are attempting to find a solution to a problem, you usually try to think of as many different ways to approach the problem as possible

24 46 13 17 0

3 After carrying out a solution to a problem, you usually try to analyze what went right and what went wrong

47 34 12 7 0

4 Difficult problems make you very upset 6 13 16 34 31

5 You are less Bothered by things 53 27 4 6 10 6 Trouble keeping mind focused 21 63 10 4 2 7 Felt depressed 0 3 11 46 40 8 Too tired to do things 0 7 3 59 31 9 Enjoyed life 43 51 3 1 2 10 Felt sad 0 0 4 67 29 11 Felt people dislike you 0 0 24 27 49


When respondents from School of Nursing were asked whether after regular meditation they are too tired to do things, the response to this was that 59% respondents disagreed to this, followed by 31% respondents who strongly disagree, followed by 7% respondents agreeing to this and 3 % neutral responses. When enquired about whether they are able to enjoy life after meditation 51% respondents agreed, followed by 43% respondents strongly agreed, followed by 3% neutral respondents, followed by 2% respondents who strongly disagreed and 15 respondents disagreed to this statement.

67% respondents disagreed to the statement that meditation makes them sad, followed by 29% respondents who strongly disagreed, followed by 4% neutral responses. When enquired about their responses towards liking of other towards them “Felt people dislike you” 49% respondents

strongly disagree, followed by 27% respondents who disagree and 24% neutral respondents.



Table 17: Response of respondents from School of Ayurveda regarding stress handling after Meditation


When the set of respondents were asked if they felt any improvement in handling stress after practising mediation, their response is registered in table 4.2.17. The responses were registered on the Likert 5 point scale ranging from strongly agree, agree, neutral, disagree and strongly disagree. Most of their response was positive as respondents mentioned they are able to handle stress better and that too without getting anxious. When they were asked regarding whether after practising Meditation they are able to find a solution to a problem by applying all possible approaches, 51 % of respondents agreed to this, followed by 18 % respondents disagreed, followed by 17% respondents who strongly agreed and 14% respondents were neutral towards this.

Further when asked about do they try to analyse the solution in the light of wrong or right decision, 54 % respondents strongly agreed, followed by 29 % respondents who agreed, followed by 11 % respondents with neutral response and 6 % respondents disagreed to this.

When enquired about whether after meditating regularly if difficult situations still make them upset, 42 % respondents disagreed, followed by 31 % respondents who strongly disagreed, followed by 14 % respondents with neutral response, followed by 9 % respondents who agreed and 4 % respondents strongly agreed. Most of the respondents 61% positively reverted that they

Sr. No.

Statements Strongly Agree

Agree Neutral Disagree Strongly Disagree

1 When you have a problem to solve, you solve it calmly 22 41 23 14 0

2 When you are attempting to find a solution to a problem, you usually try to think of as many different ways to approach the problem as possible

17 51 14 18 0

3 After carrying out a solution to a problem, you usually try to analyze what went right and what went wrong

54 29 11 6 0

4 Difficult problems make you very upset 4 9 14 42 31

5 You are less Bothered by things 61 21 3 5 10 6 Trouble keeping mind focused 17 75 8 0 0 7 Felt depressed 0 2 7 57 34 8 Too tired to do things 0 1 3 67 29 9 Enjoyed life 36 57 5 0 2 10 Felt sad 0 0 4 67 29 11 Felt people dislike you 0 0 18 29 53



strongly agree to the statement that they are less bothered by things now, followed by 21 % respondents who agreed, followed by 10 % respondents who strongly disagree, followed by 5 % respondents who disagreed and 3% neutral responses.

When enquired about after regular meditation they are able to concentrate better and stay focused to these 75% respondents agreed, followed by 17 % respondents who strongly agreed and 10% neutral responses. 57% respondents mentioned after meditation they are less depressed and replied as they strongly disagree, followed by 34% strongly disagreed responses, followed by 7% neutral respondents and 2 % agreed responses.

When respondents from School of Ayurveda were asked whether after regular meditation they are too tired to do things, the response to this was that 67% respondents disagreed to this, followed by 29 % respondents who strongly disagree, followed by 3% respondents were neutral to this and 1% respondent agreed to this statement. When enquired about whether they are able to enjoy life after meditation 57% respondents agreed, followed by 36% respondents strongly agreed, followed by 5% neutral respondents and 2% respondents who strongly disagreed to this statement.

73% respondents disagreed to the statement that meditation makes them sad and 2% respondents who strongly disagreed. When enquired about their responses towards liking of other towards them “Felt people dislike you” 53% respondents strongly disagree, followed by 29% respondents

who disagree and 18% neutral respondents

Conclusions & Suggestions

There are different levels of stress causing factors in the life of students due to which students experience drift in their relations and it often cause psychological stress among students of School of Ayurveda as well as Nursing. The stressors range from their academic achievement/ performance, career settlement, Loss of concentration, loss of appetite, loneliness and in extreme cases it may result in involvement of students in drugs.Students are the backbone of every nation but the silent disease of stress is ruining the efficiency of students in different forms. The only solution to this is constant and continuous practice of meditation as it not only reduces the tension but also facilitates students to lead their life more peacefully and increases the decision making capacity of students. References

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College Publishers

https://unlocking-your-life.com/2011/09/06/how-to-de-stress-prosper-13-the-human-function-curve/

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An Analysis of the Marketing Scope of Gold Loan of India Infoline Finance Limited

Umar Farooq MBA 4th Semester, University School of Management, Desh Bhagat University, Mandi Gobindgarh

Abstract

Gold loans have become popular recently. The present study aim to find out opinion and awareness level regarding gold loan with special reference to IIFL. Maximum respondents are aware about gold loans though many do not avail the service of gold loan It is suggested that to increase awareness about Gold Loan Services and Other Financial Product and the name India Info line itself, the company should organize campaign. The campaign can be weekly, monthly, yearly, it will give a good result to the company to capture market in the competitive position. Keywords: Gold Loan, Marketing, IIFL

Introduction

IIFL was incorporated in 1995 as an independent equity research and consulting firm with clients comprising leading FIIs, banks, consulting firms and corporates. In 1999, the company restructured the business model to embrace the Internet and launched a website and mobilized capital from private equity investors. In 2000, the company commenced distribution of personal financial products, launched online equity trading and entered into life insurance distribution as a corporate agent. In 2004, it acquired a commodities broking license and also launched portfolio management services. In 2006, the company acquired membership of Dubai Gold and Commodities Exchange (DGCX) and also launched investment banking services. Through its subsidiaries, IIFL ventured into the consumer finance business in FY08, providing home loans and personal loans. It also launched wealth management services under the "IIFL Wealth" brand and received an insurance broking license from IRDA during the year. In 2010, IIFL Securities Pvt. Ltd (Singapore), received in‐ principle approval from the Singapore Stock Exchange, while IIFL Securities Ceylon (Pvt.) Ltd (Sri Lanka), received in‐ principle approval for membership of the Colombo Stock Exchange for stock broking.

IIFL is a registered member of the BSE and the NSE for securities trading, and of MCX, NCDEX and DGCX for commodities trading. The company is also a depository participant of Central Depository Services Ltd and National Securities Depository Ltd. It offers broking services through both branches and franchises. Its subsidiaries include India Info line Investment Services (IIISL) and Money line Credit Ltd and are registered with the RBI as non‐ deposit taking, non‐ banking finance companies. IIFL has a home finance arm, India Info line Housing Finance Ltd, registered with the National Housing Bank.

Financial Products & Services of IIFL

Mortgage Loans, which includes Housing Loans and Loans against Property. Gold Loans, which includes finance against security of mainly used gold ornaments. Healthcare Finance, which includes finance for medical equipment’s and project funding



in the healthcare sector IIFL Gold Loan

Gold loan or loan against gold is the easiest and quickest way for servicing your financial needs. To avail a gold loan, all you need to do is pledge your gold ornaments with us and we would provide you with a loan amount as per the market value of your gold. Unlike other loans, gold loan does not require you to provide any income or salary proof. Moreover, it has comparatively lower interest rates; requires lesser documentation, and hence is processed in lesser time. We at IIFL provide maximum loan against your gold at lowest interest rates. We have a strong presence Pan-India and have serviced a large number of customers in a very short span. We offer different types of schemes as per your requirement and convenience. Following are the main features of our loans:

Loan amount ranges from min Rs 5,000 to max Rs 10,00,000 Tenor for loans ranges from 3 months to 12 months Loan can be paid back on a monthly or quarterly basis Interest / Loan Amount due can be paid at any of our Gold Loan branches pan-India Minimal amount of paperwork and documentation is required Loan gets processed in as low as 5 minutes Variety of schemes are available to choose from

Main Features of IIFL Gold Loan: Loan amount ranges from min Rs 3,000 to max No limit Tenor for loans ranges from 3 months to 12 months Loan can be paid back on a monthly or quarterly basis Interest / Loan Amount due can be paid at any of IIFL Gold Loan branches pan- India Minimal amount of paperwork and documentation is required Loan gets processed in as low as 5 minutes Variety of schemes are available to choose from

Review of Literature

Nandakumar V.P.(2015) .This study relates to indian gold loan market and its impact in Indian market. In India, it is estimated that most of the gold is held by people in rural areas where, often, it is the only asset people have in their possession though in limited quantities. A rural Indian knows that if his crop fails or his family is sick, he can raise cash at short notice from the goldsmith or pawnbrokers and moneylenders. Gold has a formidable part in showcasing Indian customs and traditions. Women richly clad in gold jewellery are a familiar sight in Indian

tradition and is a sign of prosperity and well -being in a society. Also, in a rich social heritage filled with celebrations and gaiety, gold jewellery was always esteemed and in demand. Gifting of gold on auspicious occasions is also a common tradition in the country. The study is conducted to understand the gold loan market in India and its impact and gold loan and financial inclusion. The study aims at collecting information regarding the nature, character and composition of gold loan



business in India, its socioeconomic impact and problems associated with the sector on the basis of the research conducted among the clientele of Manappuram Finance Ltd. and other Institutions.

Venkateswaran, N. (2015) This study relates to the concept of Indian Consumers towards gold loan. This paper covers the Gold Loan Market among consumers in India. It covers Gold Loan as a product, elucidates its features, looks at the industry trends, market size, market players and their revenues and explains the opportunities and challenges existing in the sector. Loans against Gold are traditionally considered taboo especially in Indian households. Even when gold is pledged, it is still done as the last resort. Gold jewellery at home is considered on par with "Goddess Lakshmi" and hence hedging gold for a loan is considered inappropriate. India with its estimated gold stock of 20,000 tonnes constituted around 11.7% of the global stock in 2011 and continues to be the largest consumer market for gold despite strong rise in gold prices. Further, several new lenders have made an entry into the segment over the last two years, demonstrating a varying level of commitment to the segment with varied levels of investments in building a branch network and capabilities required to be successful in the gold loans business This perception towards Gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan. The Gold loan market that was highly fragmented and dominated by local jewelers has gradually seen the entry and growth of NBFCs and banks; a clear indication of the viability of gold loans as an important loan product.

Geetha G. Nair & Jancy Davy(2014) Gold loans have become a basis for creation of new financial products such as loans for purchase of gold wherein gold is purchased on the date of loan and held as a pledge until the equated monthly instalments are paid. India is one of the biggest markets for gold and gold loan. Indian households typically have an emotional attachment and sense of personal belonging to the gold they own, which is usually in the form of jewellery, coins or bars. A gold loan is settled either by repayment or, in case of default, by sale of the pledged. The formalities in availing gold loans are minimal and procedures are simple. I unlike other secured loans, the underlying asset in a gold loan is not subject to depreciation. At the same time, unlike land, it is a liquid asset and the transaction costs involved when enforcing the security are minimal Gold loans are ideal for those employed in the informal or unorganised sector and do not have documents to prove their income. This is a segment conventional banks generally avoid because their appraisal and credit scoring is based on formal documentation. Incidentally, more than 90 per cent of India’s workforce is in unorganised sector. In practice, the

entire process should hardly take 15 to 20 minutes. This makes gold loans ideal for the micro-finance segment where the loan amounts are small and where there is no point in testing the borrower’s patience with an elaborate procedure. For borrowers, gold loans have emerged as one

of the best means of raising quick, short-term capital. Gold loans were preferred over conventional personal loans due to less procedures, fast disbursement and easy instalments. The study shows that the respondents preferred gold loans from the banks, and most of the respondents use the fund for their consumption smoothing.



Objectives of the Study To know the customer’s opinion and awareness about gold loans with special

reference to IIFL Gold loan

To suggest measures in order to increase awareness level about gold loans

Research Methodology

The study is based on survey technique. The study consists of analysis and Market Scoping of

Financial product of IIFL. For the purpose of the study, 100 customers are picked using

convenience sampling in Chandigarh and their views solicited on different parameters. The

primary data is collected through structured questionnaire. Personal interviews and informal

discussions were held with customers to ascertain the awareness level. Simple percentages

were calculated

Analysis of Data & Interpretation

Table 1: Distribution of Respondents on basis of Occupation

Occupation Percentage (%)

Household 6

Businessman 35

Government Employee 14

Private Employee 45


Table 1 shows that maximum percent of clients i.e., 45 clients are private employee 35 clients are

business man14 clients are government employee and 06 clients are house hold which respond.

Table 2 shows that maximum number of clients i.e.,35%. Respondents have two time emergency

requirement of money, 25%Respondents have 3 times requirement of money and 5% Respondents

don’t have the requirement of money.



Table 2: Distribution of respondents on basis of Frequency of Requirement of Money

Frequency of Requirement

of Money

Percentage (%)

0 05%

1 15%

2 35%

3 25%

4 12%

5 5%

6 3%


Table 3: Distribution of Respondents on basis of awareness about concept of money

Awareness about concept of Money Percentage (%)

Yes 100

No 0


Table 3 indicates that maximum number of clients i.e., 100% clients are aware about

the concept of gold loan while in the other hand only 0% clients are not aware about

the concept of gold loan.

Table 4: Distribution of Respondents on basis of gold loan service usage

Gold Loan Service Usage Percentage (%)

Yes 40

No 60


Table 4 indicates that maximum number of clients i.e., 40% clients never used gold loan services, while in the other hand only 60% of Respondents used the gold loan services.



Table 5: Distribution of Respondents on basis of source of information about IIFL Gold Loan

Source of Information about IIFL Gold Loan Percentage (%)

Family relatives

54%

Friends and colleagues 23%

Internet 17%

Advertisement 6% Source: Primary Survey, 2015

Table 5 shows that maximum number of clients i.e., 54% clients got the information from

family relatives , 23% clients got the information from friends and colleagues , 17% clients

got the information from internet and 6% clients got the information from advertisement.

Table 6: Distribution of Respondents on basis of opinion on Interest charged by IIFL

Opinion on Interest Charged by IIFL Percentage (%)

Very High 14%

High 10%

Reasonable 64%

Low 12% Source: Primary Survey, 2015

Table 6 indicates that maximum number of clients i.e., 64% clients said that interest charged

by IIFL is reasonable, 12% clients said its low,14 clients said its very high , and 10 clients

said its high

Table 7: Distribution of Respondents on basis of opinion of urge to buy gold loan looking at the

recent downfall in Gold prices last month

Urge to buy Gold Loan Percentage (%)

Yes 78

No 22


Table 7 indicates that maximum number of clients i.e., 78% clients feel the urge to buy gold ,

while in the other hand only 22% clients don’t feel the urge to buy gold.



Table 8: Distribution of Respondents on basis of source of help when money is

required

Source of help when money is required Percentage (%)

Relatives 52 Friends 10 Loan 30

Saving 8

Table 8 shows the maximum number no. of people is 52% responded have emergency require

of money borrowed from relatives, 10% responded have requirement of money from borrowed

from frends,30%and 8% responded have emergency requirement of money borrowed from

bank loan or saving.

Table 9: Distribution of Respondents on basis of awareness about concept of gold loans

Awareness about concept of Gold Loans Percentage (%)

Yes 100

No 0

Source: Primary Survey, 2015 Table 9 indicates that the maximum no. of client of client i.e. 95% clients are aware about the

concept of gold loan while in other hand only 5% clients are not aware about the concept of

gold loan.

Table 10: Distribution of Respondents on basis of usage of gold loans

Usage of Gold Loans Percentage (%)

Yes 90

No 10

Table 10 shows that maximum no. of people i.e. 10% people never used gold loan service, while in other hand 90% of responded used gold loan service.

Findings According to the survey most of the customers of “Infoline Ltd.” says that rate of interest charged by IIFL is satisfactory. Coming to faith 59% say India Info line Ltd is better than others NBFC’s due to customer’s satisfaction IIFL gold loan is less preferred by the general people might because of less awareness about IIFL goal loan services. People want to invest their money in the bank saving accounts rather than insurance, fixed deposit, stocks and shares. Most of respondents have their annual income between 2lac to 4lacand from them most of the people prefer LIC for insurance. Many people know the concepts of gold loan in spite of that they don’t

take Gold loan.



Conclusions On the basis of the study it is found that India Info line Ltd is better services provider than the other NBFC’s because of their good service and personalized advice on gold loan and financial investment product. IIFL provides the faster services as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts. Study also concludes that people are not much aware of IIFL gold loan services. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the financial products.

Suggestions

Most of the people are not much aware of IIFL gold loan services and its benefit. So India Infoline Financial Limited can take general awareness of Gold Loan Services plan to the customers. INDIA INFOLINE should maintain the customer satisfaction.

There is lack of new customer addition in the branches of Indian Info line Financial Limited, only existing customer comes to respective branches for gold loan so it is important to increase the awareness about the financial products of Indian Info line Financial Limited in respective area. Some promotional activities are required for the awareness of the customer.

The Company should increase Exposure. It is the good tool to capture the market. To increase awareness about Gold Loan Services and Other Financial Product and the name India Info line itself, the company should organize campaign. The campaign can be weekly, monthly, yearly, it will give a good result to the company to capture market in the competitive position.

References

www.indiainfoline.com

http://www.iiflfinance.com/Products/GoldLoan.aspx

http://www.neytri.com/gold-loans-what-you-must-know/

http://www.muthootfinance.com/services/gold-loan.html

http://www.agloc.org/

www.mutualfundsindia.com

www.google.com





www.mutualfundsindia.com

http://www.indiainfoline.com/





http://www.mutualfundsindia.com/

http://www.google.com/





http://www.mutualfundsindia.com/



Nandakumar, V.P (2015). A Study on Indian Gold Loan Market and its Impact in Indian Market, IJCSMS, Vol. 6, Issue. 1, pp. 13-17

N. Venkateswaran (2015). Indian Streams Research Journal, Vol. 2, Issue 9, pp.1- 17.Available on :www.isrj.net

http://www.isrj.net/



Emergence of Knowledge Economy- A Comparative Study of BRICS Nations

Rajni Saluja

Assistant Professor, University School of Management, Desh Bhagat University, Mandi Gobindgarh

Abstract

The 21st century is recognized as an era of Knowledge. It is realized that knowledge is a critical element of producing wealth and creating job in contemporary societies. One of the new developing associations that the world is currently seeing is the formation of the BRICS countries namely Brazil, Russia, India, China and South Africa. This present paper does the comparative study of BRICS nations on the basis of Knowledge Economy Index (KEI) as given by World Bank Institute. The paper highlights the four pillars of knowledge economy and its indicators. Over time comparison is also done among BRICS nations. It has been found that these developing economies have shown improvement over the period. The paper concludes that education and information and communication infrastructure play a major role in converting the industrial economies to knowledge economies and which will further pave the way for social and economic development. Russia Federation is strong in all the four pillars of knowledge economy and could be placed at 1st rank on basis of KEI and India being weak on the basis of indicators of knowledge economy is placed at 5th rank among BRICS nations. Keywords: Knowledge Economy, BRICS, Knowledge Economy Index (KEI), Knowledge for Development (K4D)

Introduction

The 21st century is recognized as an era of knowledge economy. A knowledge-based economy relies on the use of innovative ideas and on the application of technology. It is an economy in which knowledge is created, acquired, transmitted and used more effectively by individuals, enterprises, organizations and committees to promote economic and social development. It is realized that knowledge is a critical element of producing wealth and creating job in contemporary societies. Some 2300 years back Kautilya, the celebrated author of Arthasastra proposed to create wealth from knowledge by emphasizing the importance of knowledge as prime mover of producing wealth. Education is the fundamental enabler of the knowledge economy. Well educated and skilled people are essential for creating, sharing, disseminating and using knowledge effectively. By building on their strengths and doing ample investments in human capital, effective institutions, relevant communications technologies and innovative and competitive enterprises, developing countries can capitalize on the knowledge revolution.

Concept of Knowledge Economy

The World Bank Institute offers a formal definition of a knowledge economy as one that creates,

disseminates and uses knowledge to enhance its growth and development. A knowledge economy

uses data as its raw material and transforms it using technology, analysis tools and human

intelligence into knowledge and expertise.



Concept of BRICS

The acronym was coined by Jim O’ Neil in a 2001 paper entitled, “Building Better Global

Economic BRICs” BRICS originally BRIC before the inclusion of South Africa in 2010, is the title

of an association of emerging national economies: Brazil, Russia, India, China, South Africa. With the exception of Russia, the BRICS members are all developing industrialized countries, but they are distinguished by their large, fast growing economies and significant influence on regional and economic affairs.

Goldman Sachs said that the greatest economic assets that Brazil and Russia possess are their capacity to be the world’s biggest provider of raw materials whereas China and India are going to

be the world’s biggest manufacturers of all kinds of commodities.

As a result of the 1998-99 World Development Report on Knowledge for Development, the topic

of the Knowledge economy gained prominence with policymakers worldwide. In 2001, the K4D

(Knowledge for Development) program held a high level policy forum to share knowledge

strategies among key stakeholders from Brazil, India and China- potential knowledge superpowers

representing 45 percent of the world’s population.

Main Objectives of the Study

To highlight the four pillars of knowledge economy as given by World bank Institute. To make comparative study of BRICS nations on basis of KEI, pillars of knowledge

economy and their indicators. Over time comparisons is also done among the nations.

Methodology & Database

The methodology adopted in the study is analytical and descriptive. The study is based on secondary sources of information drawn from various publications. Data are also drawn from publications, print and electronic of governmental and non-governmental agencies such as of World Bank to arrive at conclusions. The study makes comparison among BRICS nations for the period 1995, 2000, 2008 and 2012. The comparative study is done on the basis of Knowledge Economy Index (KEI).

The most commonly cited of the KAM’s several indexes is the Knowledge Economy Index

(KEI). KEI is a broad measure of the overall level of preparedness of a country or region for the

knowledge economy. The KEI summarizes each country’s performance on 12 variables

corresponding to the four knowledge economy pillars. The KEI is constructed as the simple

average of the normalized values of those indicators from 0 to 10. A KEI score that is close to 10

implies relatively good development of the four knowledge economy pillars as compared to other

countries, while a score close to 0 indicates relatively poor development.



Four Pillars of Knowledge Economy and their Indicators according to KAM basic scorecard

The World Bank Institute’s Knowledge for Development Program (K4D) helps to build the

capacity of client countries to access and use knowledge to become more competitive and improve growth and welfare. It has developed a four pillar framework that countries can use as the basis for their transition to knowledge economy.

Pillar I Economic and Institutional Regime

The country’s economic and institutional regime must provide incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship. The indicators under this pillar are:

Tariff and non-tariff barriers Regulatory quality Rule of law

Pillar II Education and Skills

The country’s people need education and skills that enable them to create and share and to use it

well. This includes following indicators:

Average years of schooling Gross secondary enrolment rate Gross tertiary enrolment rate

Pillar III Information and Communication Infrastructure

A dynamic information infrastructure is needed to facilitate the effective communication, dissemination and processing of information. The indicators included are as follows:

Telephones per 1000 people Computers per 1000 people Internet users per 1000 people

Pillar IV Innovation system

The country’s innovation system- firms, research centres, universities, think tanks, consultants and other organizations must be capable of tapping the growing stock of global knowledge, assimilating and adapting it to local needs and creating new technology. This includes following indicators:

Royalty payments and receipts US$ per person Technical journal articles per million people Patents granted to nationals by the US patent and Trademark office per million people




As of 2013, the five BRICS nations represent almost 3 billion people with a combined nominal GDP of US$ 14.9 trillion and an estimated US$ 4 trillion in combined foreign reserves. Presently, India holds the chair of the BRICS group.

Economic Performance of BRICS Nations: Table 1 highlights the economic performance of BRICS nations

Table 1: Economic Performance of BRICS nations

Indicators/ Nation

`

Brazil China India Russia Federation South Africa

Actual Normalize Actual Normalize Actual Normalized Actual Normalized Actual Normalized

Annual GDP Growth (%) 2005-2009

3.40 3.89 11.90 9.72 8.40 9.51 4.00 5.14 3.60 4.44

GDP per capita US$ PPP, 2009

10,367 5.32 6,828 4.33 2296 2.77 18932 6.95 10278 7.85

GDP (Current bill) US$, 2009

1594.49 9.52 4985.46 9.86 1377.26 9.38 1231.89 9.24 285.37 7.85

Human Development Index, 2010

0.70 5.14 0.88 9.38 0.87 9.24 0.70 5.28 0.60 3.06

Multidimensional Poverty Index, 2008

0.04 6.05 0.06 5.47 0.30 2.56 0.01 8.60 0.01 7.09

Seats in Parliament held by women (as

% of total), 2009

9.00 1.87 21.00 6.62 9.00 1.97 11.00 2.59 34.00 9.14

Composite Risk Rating 07/2010- 06/2011

74.48 6.94 75.49 7.34 68.28 4.11 73.23 6.95 69.64 5.00

Gender Inequality Index, 2008

0.63 3.97 0.41 6.94 0.75 0.83 0.44 6.69 0.64 3.80

Source: www.worldbank.org

Table 1 show that China’s growth rate is the highest in the world with a rate of 11.9% of GDP.

India follows suit with an annual GDP of 8.4%. Russia stands third in the group with its GDP at 4%. South Africa stands fourth at 3.6% GDP while the last but not the least is Brazil with a GDP of 3.4% annually. Per capita income is highest in case of Russia followed by Brazil, South Africa, China and India. Russia has highest per capita income (18932 US$) and India has lowest (2296 US$). Human development index is highest in case of China (0.88) and lowest in South Africa (0.60).

Economic & Institutional Regime of BRICS nations: As per basic scorecard of KAM 2012, Economic & Institutional Regime of BRICS is shown in table 2.

Table 2: Economic & Institutional Regime of BRICS Nations

Variable/Nation Brazil China India Russia Federation South Africa

Actual Normalized Actual Normalized Actual Normalized Actual Normalized Actual Normalized

Tariff & Non-tariff Barriers,2011

69.80 2.17 71.60 2.66 64.20 1.12 68.20 1.68 77.20 4.34

Regulatory Quality, 2009

0.18 5.14 -0.20 3.97 -0.28 3.77 -0.46 2.67 0.42 6.23

Rule of Law 2009, -0.18 5.21 -0.35 4.73 0.05 5.82 -0.77 2.33 0.06 5.89

Source: www.worldbank.org/kam

http://www.worldbank.org/

http://www.worldbank.org/kam



Table 2 shows that normalized score of tariff & non-tariff barriers are highest in South Africa (4.34) followed by China (2.66), Brazil (2.17) and Russia (1.68).

India has lowest normalized score of tariff and non-tariff trade barriers (1.12). Regulatory Quality has highest normalized score in South Africa (6.23) and lowest in Russia (2.67). Rule of law has highest normalized score in case of South Africa (5.89) followed by India (5.82), Brazil (5.21), China (4.73) and Russia Federation (2.33) respectively. This indicates that Economic and Institutional regime (EIR) as reflected by three EIR variables is strong in case of South Africa. EIR performance on basis of tariff and non-tariff barriers is weak in case of India and Russia. EIR performance on basis of three EIR variables is weak in case of Russia indicating country’s

unconducive institutional environment for all success in the knowledge economy. China is showing moderate performance on basis of three EIR variables.

Innovation System: Table 3 highlights innovation system as per basic scorecard (KAM 2012).

Table 3: Innovation system of BRICS Nations



Royalty payments and receipts (US$ per person),

2009

15.21 6.08 8.63 5.52 1.78 3.12 32.43 6.64 34.59 6.72

Technical Journal Articles per

million people, 2007

62.54 6.76 43.11 5.93 16.18 4.55 98.20 7.24 58.19 6.48

Patents granted by

USPTO per million people, 2005-2009

0.68 6.10 1.05 6.51 0.51 5.82 1.28 6.92 2.51 7.47


Table 3 shows performance of BRICS nations on basis of three variables of Innovation system.

Royalty payments and receipts have highest normalized score in case of South Africa (6.72),

followed by Russia (6.64), Brazil (6.08), China (5.52) and India (3.12) respectively. Technical

Journal Articles per million people have highest normalized score in case of Russia (7.24)

followed by Brazil (6.76), South Africa (6.48), China (5.93) and India (4.55) respectively. Patents

granted by USPTO per million people has highest value in case of South Africa (7.47) followed by

Russia Federation (6.92), China (6.51), Brazil (6.10) and India (5.82). This indicates that South

Africa has strong innovation systems on basis of three variables as given by basic scorecard.

India’s performance on basis of three variables of Innovation system is weak. China being ahead

of India shows slightly better performance as compared to India.

Education & Skill of Population: Table 4 indicates education and skill of population of BRICS nations as per basic scorecard (KAM 2012).




Table 4: Education & Skill of Population of BRICS Nations



Average years

of schooling, 2010

7.54 3.23 8.17 4.17 5.12 1.26 9.69 6.54 8.56 4.72

Gross Secondary

Enrolment Rate, 2010

100.79 8.55 78.19 3.66 60.02 2.55 84.81 4.69 93.87 6.69

Gross Tertiary

Enrolment Rate, 2009

34.44 5.04 24.53 3.97 13.48 2.98 77.19 9.15 15.41 3.19


Table 4 shows performance of BRICS nations on basis of three variables that is average years of schooling, gross secondary enrolment rate and gross tertiary enrolment rate. Russia Federation (6.54) has highest normalized score in average years of schooling followed by South Africa (4.72), China (4.17), Brazil (3.23) and India (1.26). In case of gross secondary enrolment rate highest normalized score is of Brazil (8.55) followed by South Africa (6.69), Russia Federation (4.69), China (3.66) and India (2.55). Russia Federation (9.15) has highest normalized score in case of gross tertiary enrolment rate followed by Brazil (5.04), China (3.97), South Africa (3.19) and India (2.98). This indicates that Russia is strong in education pillar on basis of average years of schooling and gross tertiary enrolment ratio. India is weak in education pillar having lowest normalized scores in all the three variables of education pillar. China is ahead of India in case of all three variables. Brazil is strong in case of gross secondary enrolment rate.

Information & Communication Infrastructure: Table 5 shows information and communication infrastructure of BRICS nations as per basic scorecard (KAM 2012) Table 5: Information & Communication Infrastructure of BRICS Nations



Total

Telephone per 1000 people, 2009

1110.00 4.97 800.00 3.24 480.00 1.86 1940.00 9.59 1030.00 4.34

Computers per 1000 people, 2008

350.00 7.47 60.00 3.22 30.00 1.99 130.00 5.34 80.00 3.84

Internet users

per 1000 people, 2009

390.00 6.28 290.00 4.90 50.00 1.86 420.00 6.55 90.00 2.55

Source: www.worldbank/kam

Table 5 shows information and communication infrastructure of BRICS nations on basis of three variables that is total telephones per 1000 people, computers per 1000 people and Internet users per 1000 people as given by basic scorecard. Russia Federation (9.59) has highest normalized value in case of total telephone per 1000 people followed by Brazil (4.97), South Africa (4.34), China (3.24) and India (1.86) respectively. Computers per 1000 people normalized score is highest in case of Brazil (7.47) followed by Russia Federation (5.34), South Africa (3.84), China (3.22), India (1.99).


http://www.worldbank/kam



Russia Federation (6.55) has highest normalized score in case of internet users per 1000 people followed by Brazil (6.28), China (4.90), South Africa (2.55) and India (1.86) respectively. This indicates that Russia Federation is strong on information and communication infrastructure as shown by total telephone users per 1000 people and internet users per 1000 people. Brazil follows Russia except in case of computers per 1000 people in which it lies ahead of Russia. India is weak on ICT front having lowest normalized score in all the three variables even lowest as compared to South Africa. China immediate competitor of India is ahead of India on basis of all three variables.

Ranking of BRICS Nations in the world: Table 6 shows rankings of BRICS Nations on basis of knowledge economy index and four pillars of knowledge economy as per KAM 2012.

Table 6: Ranking of BRICS nations in the world (KAM 2012)

Nation/Variable Knowledge Economy Index

Economic Incentive Regime

Innovation System Education Information & Communication Infrastructure

Rank Index Rank Index Rank Index Rank Index Rank Index Brazil 60 5.58 82 4.17 51 6.31 61 5.61 58 6.24 Russia Federation

55 5.78 117 2.23 40 6.93 44 6.79 44 7.16

India 110 3.06 99 3.57 76 4.5 111 2.26 122 1.9 China 84 4.37 97 3.79 54 5.99 95 3.93 94 3.79 South Africa 67 5.21 64 5.49 44 6.89 81 4.87 98 3.58 Source: www.worldbank.org/kam

Table 6 shows that Russia Federation is ranked 55st position for KEI in world. Russia’s overall

performance was hampered mainly by weaknesses in its EIR pillar which with a value of only 2.23 puts it in 117th place. In the education pillar, lower scores in average years of schooling and secondary enrolment rates have led to 44th place. Its ICT pillar has registered a sizeable improvement mainly because of an increase in the number of telephone users.

Brazil with a current KEI of 5.58 has fallen to 60th rank. Its education pillar advanced due to strong growth in average years of schooling and in its gross tertiary enrolment rate. The EIR is Brazil’s weakest pillar mainly because of relatively high trade barriers.

India’s KEI fell to 110th in 2012 KEI rankings. India’s innovation pillar has leaped up and ranked

76th. India’s EIR and ICT pillars have registered slight declines.

With significant improvements in its EIR, innovation and education pillars, China has jumped to rank of 84th. Its innovation pillar has made the largest gain because of rapid increase in all three key indicators. However its ICT pillar dropped because of relatively slow progress on all the three indicators.

South Africa is at 67th rank as per KEI in the world. It is ahead of China and India. It is showing better performance as compared to China and India on basis of all pillars.

Basic Scorecard of BRICS Nations (KAM 2012): Table 7 does comparison of BRICS Nations on basis of knowledge economy index, knowledge index and four pillars of knowledge economy.




Table 7: Comparison of BRICS Nations on basis of basic scorecard (KAM 2012)

Variable/Nation Brazil China India Russia South Africa 1. Knowledge Economy Index (Average 3,4,5,6)

5.58 4.37 3.06 5.78 5.21

2. Knowledge Index (Average 4,5,6)

6.05 4.57 2.89 6.96 5.11

3. Economic Incentive & Institutional Regime

4.17 3.79 3.57 2.23 5.49

4. Education 5.61 3.93 2.26 6.79 4.87 5. Innovation 6.31 5.99 4.50 6.93 6.89 6. Information & Communication Infrastructure

6.24 3.79 1.90 7.16 3.58


Table 7 shows that Knowledge economy index (KEI) which is taken as average of normalized values of four pillars of knowledge economy. Russia has highest KEI (5.78) followed by Brazil (5.58), South Africa (5.21), China (4.37) and India (3.06). It indicates that among BRICS nations Russia Federation can be placed at 1st rank and India at 5th rank. Knowledge index (KI) is taken as average of normalized values of three pillars excluding economic incentive and institutional regime. On basis of KI also Russia Federation is placed at 1st rank and India at 5th rank. Economic Incentive & Institutional regime shows highest normalized score in case of South Africa (5.49) followed by Brazil (4.17), China (3.79), India (3.57) and Russia (2.23). South Africa is strong on EIR pillar and placed at 1st rank whereas Russia is weak on EIR pillar and is placed at 5th rank. Education pillar shows highest normalized score in case of Russia (6.79) followed by Brazil (5.61), South Africa (4.87), China (3.93) and India (2.26). This indicates that Russia and Brazil are strong on education pillar and placed at 1st and 2nd rank respectively among BRICS nations whereas India is weak on education pillar and placed at 5th rank. Innovation pillar shows highest normalized score in case of Russia (6.93) followed by South Africa (6.89), Brazil (6.31), China (5.99), India (2.26). Russia is strong on innovation pillar and is placed at 1st rank whereas India is weak and therefore placed at 5th rank. Information and communication infrastructure (ICT) pillar shows highest normalized value in case of Russia (7.16) followed by Brazil (6.24), China (3.79), South Africa (3.58) and India (1.90). Russia being strong on ICT pillar is placed at 1st rank and India being weak on ICT pillar is placed at 5th rank.

Over time Comparison of BRICS Nations on basis of KEI: Table 8 does overtime comparison of BRICS nations on basis of knowledge economy index as given by KAM 2012.

Table 8: Over Time Comparison of BRICS Nations on basis of KEI

Nation/Year 2012 2008 2000 1995 Change over 2008

Change over 2000

Change over 1995

Brazil 5.58 5.50 5.48 5.08 0.08 0.10 0.50 Russia 5.78 5.58 5.28 5.67 0.20 0.50 0.11 India 3.06 3.04 3.14 3.57 0.02 -0.08 -0.51 China 4.37 4.36 3.83 3.99 0.01 0.54 0.38 South Africa 5.21 5.55 5.77 6.05 0.34 -0.56 -0.84 Source: www.worldbank.org/kam





Table 8 shows KEI of BRICS nations for period of 2012, 2008, 2000, 1995. Comparison of change over the year 2008 to most recent shows the positive change for all nations. The change as compared to 2000 to most recent is negative in case of India and South Africa and same is the case in the year 1995.

Conclusions

The present study broadly concludes that Russia Federation is strong on basis of four pillars of knowledge economy and could be placed at 1st rank on basis of KEI (KAM 2012) among BRICS nations whereas India is weak on basis of pillars of knowledge economy and is placed at 5th rank. China immediate competitor of India is ahead of India on basis of KEI and pillars. Brazil also occupies strong position on basis of indicators. South Africa, a new entrant in acronym BRICS is also working strongly to pave the way for knowledge economy. No doubt BRICS nations are dynamic economies and can be foreseen as a viable superpower group of the future. It will take time for BRICS nations to become strong on various indicators of knowledge economy pillars and convert their industrialized economies into knowledge economies. Developing economies has shown improvement over the period of time. Education and Information and communication infrastructure plays a major role in emergence of knowledge economy.

References

Dahlman Carl & Ulz Anuja (2005), “India and the Knowledge Economy: Leveraging

Strengths and Opportunities”, Finance and Private Sector Development unit of the World

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Dawson David Sell, Raj Anthony S, Karthikeyan K (2012), “BRICS Countries: The Future

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Evoh Chijioke J (2007), “ICTs, Secondary Education and the Knowledge Economy:

Exploring the Roles of the Private Sector in Post-Apartheid South Africa”, Journal of

Education for International Development, Vol. 3, No. 1, September 2007, pp. 1-25.

Geretti Gary & Ong Ryan (2006), “Upgrading in the Global Knowledge Economy:

Insights from China and India”, Paper prepared for Global value chains workshop, Social

Science, Research Institute, Duke University, Durham, North Carolina, November 9-10,

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Management: Role of library & Information Professionals”, Vision and Roles of the future

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Thompson Dora & Tongo Manish (2012), “Target of inclusive growth and demographic

dividend of India”, International Journal of Scientific and Research Publications, Vol.2,

Issue. 8, August 2012, pp. 1-3.

www.wikipedia.org

www.worldbank.org/kam

http://www.wikipedia.org/


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