JAGRAN JOURNAL OF COMMERCE AND ECONOMICS · Chairman, Delhi School of Professional Studies and Research, Delhi Formerly Professor, Head and Dean Faculty of Commerce and Business Delhi

ISSN 2321-6522

JAGRAN JOURNALOF COMMERCE ANDECONOMICS

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Jagran College of Arts, Science and CommerceA Self Financing P.G. College Affiliated to C.S.J.M. University, Kanpur

Prof. B.P. SinghChairman, Delhi School of Professional Studies and Research, Delhi Formerly Professor, Head and Dean Faculty of Commerce and BusinessDelhi School of Economics, University of Delhi

Prof. Arun KumarProfessor and Chairman, Economic Studies and Planning Centre, JNU, New Delhi

Prof. Pramod Kumar SaxenaDean, Faculty of Commerce, HOD (Accountancy and Law) Dayalbagh Educational Institute, Agra

Prof. R.C. GuptaProfessor, (Commerce) and Director, Govt. M.L.B. College of Excellence, Gwalior.

Prof. O.P. ShuklaPrincipal, National Defence Academy, Pune

Prof. H.K. SinghProfessor, Faculty of Commerce, Banaras Hindu University, Varanasi

Prof H.M. MehrotraHead, Dept. of Economics, Christ Church College, Kanpur

Dr. Vimal KumarAsst. Professor, Dept. of Economics, IIT Kanpur

Editorial Advisory Board

Shri Yogendra Mohan Gupta

Chairman, Jagran Group and Jagran Education Foundation

Shri Mahendra Mohan Gupta

CMD, Jagran Prakashan Ltd., Former Member Rajya Sabha

Smt. Ritu Gupta

Vice Chairperson, Jagran Education Foundation

Dr. J.N. Gupta

CEO, Jagran Education Foundation

Our Patrons

JAGRAN JOURNAL OF COMMERCE AND ECONOMICSMarch 2017Vol. 3, Issue 6 ISSN 2321-6522

Chief Editor

DirectorJagran College of Arts, Science and CommerceMarch 31, 2017

Our country is facing many problems and corruption is found to be the root cause of almost all. All fingers are pointed against the government which fails to establish good governance though it claims to regulate the system by taking steps like demonetization, digitalization, DBT and promoting cashless economy. Undoubtedly these steps will put a check

on malpractices and corruption but to adapt and be friendly with such system is yet another big challenge. Though our countrymen have demonstrated great patience and support in this drive against black money and once again the spirit of nationalism overruled all political drama and negativity.

There are two ways to lead a life: Do nothing and suffer the consequences or take the responsibility to change it. We all directly or indirectly contribute towards the well being of our nation by taking right and prudent decision and acting upon them. The Human Resource of any country is responsible for what it is? Thus Human Resource Management becomes critical to address the issues that requires analysis of factors such as work life balance, job satisfaction, significance of training evaluation, 360 degree performance appraisal etc. These subjects are explored by the articles and papers published in the current issue.

The paper on customer satisfaction towards online

shopping highlights how the access to online shopping can truly

revolutionize and influence our society as a whole. The studies

on women entrepreneurship, travel and tourism industry, life

insurance and telecom sector studies the challenges faced and

pave the way to achieve maximum growth in future. The paper

on ethical dilemma in accounting helps to analyse the aspects

relating good governance. Besides the role of industrial

infrastructure in M.P. and profitability in SAIL are also discussed

in the present issue.

Co-Editors

Circulation & Public Relation

INDEX

S.No. Name of the Paper and Authors Page No.

1. Factors Affecting Job Satisfaction: An Analytical 1-13

Study of Academicians in Selected Private Universities

of Central India

Swapna Nigam and Dr. R. C. Gupta

2. Recent Trend of Profitability in Steel Authority of India Limited 14-17

Dr. Arun Kumar and Shubh Laxmi Srivastava

3. Comparative Study of Work-Life Balance Practices 18-24

of State Bank of India and Housing Development

Finance Corporation

Pooja Singh

4. A Study on the Customer Satisfaction towards Online Shopping 25-36

Ankit Gupta and Dr. Umesh Holani

5. Women Entrepreneurship in India: Challenges and Prospects 37-46

Shantanu Saurabh and Veenita Singh

6. Enhancing Life Insurance Penetration and Density in India : 47-54

Purchase Intention Modelling

Upendra Nath Shukla , Sapan Asthana and Dr. Rajeev Nayan Singh

7. A Conceptual Study of Factors Affecting Customer 55-61

Satisfaction in Telecom Industry in India

Nishant Dabhade and Dr. R. C. Gupta

8. Conceptual Framework of the Significance of Training Evaluation 62-68

Pooja Sharma

9. A Study on Investors' Perception towards Investment in 69-78

Mutual Funds other than Direct Equity with special reference

to Mathura City

Ankit Goel, Dr.Rajendra K. Khatik and Dr. Deepak Singh

10. Future Benefits And Shortcomings: 360 Degree Performance Appraisal 79-86

Dr. Roopali Mishra

11. Ethical Dilemma and Accountant, Conceptual Analysis 87-91

Vinay Gupta and Dr. R. C. Gupta

12. Role of Travel and Tourism Industry in the Growth of Service Sector in India92-99

Deepa Kumari

13. vkS|ksfxd lajpuk ds fodkl dk e-iz- ds vkS|ksfxd fodkl ij 100-104

izHkko (Xokfy;j] pEcy laHkkx ds fo'ks"k lanZHk esa)

Dr. Sunita Chauhan

1

Factors Affecting Job Satisfaction: An Analytical Study of Academicians in Selected Private Universities of Central India

*Swapna Nigam**Dr. R. C. Gupta

*Research Scholar, M.L.B. Govt. College of Excellence, Jiwaji University, Gwalior (M.P.)**Professor, Commerce, M.L.B. Govt. College of Excellence, Jiwaji University, Gwalior.

Job satisfaction is a wider concept that has been an area of research with a wide variety of variables.

Teachers desire security in job, healthy work environment, career growth, recognition, research exposure,

etc. When these needs are not fulfilled they become tense. The purpose of this study was to explore the

factors that affect job satisfaction level of academicians in Private Universities of Central India and also to

identify the relationship between demographic variables (age, gender, income) and the level of job

satisfaction. The study was conducted on 200 academicians of 11 Private Universities of Central India.

Reliability and Validity was applied by testing Cronbach's Alpha reliability test and the value found to be

.760, and is found highly reliable. The face validity for all the instruments was checked by distributing

questionnaire and get it filled by area experts found to be high. KMO and Bartlett's tests were applied to

test the suitability of data for Factor Analysis and value found to be 0.736 means thereby that the sample

size was good enough to treat the sampling data as normally distributed. One-Way ANOVA and

Independent T-Test were applied to identify the significant relationship between demographic relationship

and level of job satisfaction and Exploratory Factor Analysis test has been used in this study to analyze the

data, thus, total eleven factors have been emerged (Nature of the Work, Dynamic Activities, Stress at

Work, Policies and Procedures, Responsibility and Leadership Style, Skills and Abilities, Opportunities,

Fringe Benefits, Recognition and Supervision, Job Conditions and Promotion) and it is found that all eleven

factors includes different elements having their different impact on job satisfaction of academicians. The

findings of the study suggest that most academicians were satisfied with their job.

Keywords: Job Satisfaction, Private Universities, Central India, Academicians, Dissatisfaction

Introduction

Job satisfaction is an important part of any private or government organization basically in

professional areas where job satisfaction of employees is very necessary for growth of institutions. It

refers to the self perspective of an individual who gain this in the period of career or in other terms we

can say that it is concerned with positive feelings an individual can get from his job, then only job

satisfaction can happen. With the growing competition in professional era the topic of job satisfaction

contains more importance because success or growth totally depend upon employees worth and

it will come only when employee will be fully satisfied from working atmosphere and vice versa. If

employee is not satisfied with working conditions, then both the quality and quantity of results will

suffer and affected, while, on the other hand, if employee is satisfied, then overall performance will

improve at its best. The management should always try to overcome the problems of employees so

that they will be satisfied with their work and performance will be good.

The purpose of this study is to explore the job satisfaction level between male and female faculty

members of Private Universities of Central India and find out the factors which affect job satisfaction and

job dissatisfaction among academicians. If academicians are well satisfied and happy, then quality of

learning and teaching process can be maintained and improved Chen et al., 2006, and so on. A healthy

university always needs happy academicians and who are satisfied from their job (Wood, 1976). As we

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March 2017 ISSN 2321-6522Jagran Journal of Commerce and Economics

know, the main purpose of universities is to provide best education to students, deep knowledge of

subjects, overall academic development and to support educational needs of nation Johnes and Taylor,

1990. These goals cannot be achieved if low job satisfaction exists and high job dissatisfaction seems in

Private Universities. Therefore, Syed et al., (2012) suggested that job satisfaction of academicians in any

educational institutions is the most important factor for the growth and personal development too.

Literature Review

Age and Job Satisfaction

�Morale is high when people start their first job; it goes down during the next few years, and remains

at a relatively low level; when workers are in their late twenties or early thirties morale begins to rise. This

rise continues through the remainder of the working career in most cases�.

In this study, researcher has reviewed 23 studies in accordance with the analysis of the change in

job satisfaction with changing age. In 17 out of 23 studies, there is a positive effect of age on the job

satisfaction of academicians at various age levels.

In the study of Hulin and Smith, 1965, researcher found that age has a positive effect on to job

satisfaction. It will not go down with increasing age.

In the study of Saleh and Otis, 1976, researcher found that from starting career till sixties job

satisfaction tends to increase and so on but then declined in the period of retirement. This will happen

due to bad health mainly low psychological growth.

In the study of Spraque, 1974, there is a positive relationship between age of academicians and

their job satisfaction. This study has been done in university teachers and the male faculties members

tend to be more satisfied than their peer members.

In the study of veterinary sciences conducted by Gautam, M., Mandal, K., and Dalal, R. S., 2006, it is

found that job satisfaction is a multidimensional appearance with a variety of parameters. The younger

academicians seem to be more satisfied than the academicians who are working for long tenure.

In the study of Rollins, 1973 and Probe, 1971, it is also found that there is a significant relationship

between academician's job satisfaction and age. It is tend to be flexible with the increasing age and

needs.

In the study of Petput, 1971, researcher have found that there is a tremendous increase of job

satisfaction in academicians with increasing age. They tend to be experienced, hence, getting more

rewards and benefits.

In the study of Panmuk, 1975, researcher found positive relationship between age of teachers

and job satisfaction, particularly with respect to supervision received.

Gender and Job Satisfaction

A number of researches have been carried out by researchers on the job satisfaction level of

academicians and their gender. The difference between male and female in job satisfaction has some

amazing results. Total 21 studies reviewed by researchers, out of them, 6 studies found that women are

more satisfied than men; 3 of them showed women were less satisfied than men; and 5 of them showed

there is no difference between men and women.

3


In the study of Cano, J., and Castillo, J. X., 2004, it is found that male faculty members have more

satisfaction level than female members apart from other parameters that they are more experienced

and currently working on senior designations in the university. This shows that the management tend to

fail to take the perception of female academicians and are not giving importance in decision making.

In the study of Okpara, J. O., Squillace, M., and Erondu, E. A., 2005, it is found that male

academicians are more concerned for their salary, promotions, supervision and overall job satisfaction

while on other hand female academicians are more concerned for their work and colleagues. The

results found that the management should show their more concern on female academicians in

recruitment, promotion, retain, academic career and reward.

In the study of Mehboob, F., Sarwar, M. A. and Bhutto, N. A., 2012, researcher have found that

female faculty members were less satisfied with their job than male faculty members. The number of

factors which intends to more job satisfaction is job hygiene, job motivator, policy, working condition

while the work itself is the least satisfying factor.

In the study of Hulin and Smith, 1976, sample taken from 4 universities, there were 295 male and

163 female in total, researcher found that males were more satisfied than female counterparts.

In the study of Kuhlen, 1976, Parker, 1974 and Hafen, 1971, results shows that males and

females academicians require different job satisfactions from their job on the basis of gender.

In the study of Spraque, 1974 and Chatatrakul, 1972, researcher found that there is no difference

between job satisfaction and gender in his study on university academicians.

In the study of Merrill, 1970 and Petput, 1971, results shows that female academicians were

more satisfied in their jobs than their male counterparts.

Income and Job Satisfaction

In the study of Kapilakanchana et al., 1978, researcher has taken 500 faculty members as a

sample population and out of them only 300 responded on some important factors. Therefore, the

result shows that the academicians were dissatisfied from working conditions while satisfied with

social acceptance and their work roles because they were attached with university purposes.

In the study of Panmuk, 1975, researcher conducted survey on two factors named employment

conditions and fringe benefits (important dimension of job satisfaction). The result shows that

academicians were quite satisfied with salary, safety, supervision and recognition while dissatisfied with

working conditions.

Research Methodology

Objectives

On the basis of defined variables, following objectives are framed:

1.To find out the factors affecting job satisfaction or job dissatisfaction.

2.To analyse significant difference between job satisfaction on different demographic basis i.e.

Gender, Age and Income

3.To identify underlying factors of job satisfaction using exploratory factor analysis and confirmed

elements.

4


Hypothesis

Following hypotheses are utilized to fulfil the objectives of the study. These hypotheses are

expressed in null � forms as follows:

H:There is no significant difference between job satisfaction of male and female.1

H:There is no significant difference in job satisfaction on the basis of age.2

H:There is no significant difference in job satisfaction on the basis of income.3

Research Design

The study population from which the sample was drawn for the study includes the academicians of

Private Universities of Central India. It consists of both male and female academicians of three specified

designations. Therefore, Convenient Sampling Technique was used for this study because of the nature

of the population of study. An exploratory research design is adopted, thereby making research as

efficient as possible yielding maximum information with minimal expenditure of effort, time and money.

Research Plan

Data was collected through a well-structured questionnaire. A questionnaire had two sections:

Section A consists of demographic profile while Section B consists of 36 questions of various types

containing different variables. Survey research method was used for this study. Five-point Likert scale

was used in the design of the questionnaire.

There are total 26 Private Universities in Central India. Out of these, we selected 11 Private

Universities as the study sample through convenient sampling method. The sample size was restricted

to 200.

Table 1Selected Private Universities

S.No.Name of the StateName of the City Name of the Private University

1. Madhya Pradesh Gwalior 1. Amity University

2. ITM University

Indore 1. Oriental University

2. Medi-Caps University

Bhopal 1. AISECT University

2. Jagran Lakecity University

3. People's University

4. RKDF University

5. Sarvepalli Radhakrishnan

University

2. Chhattisgarh Raipur 1. Amity University

2. ITM University

Source: Data source through survey

5


Tools for Data Analysis

The following Statistical analyses were used according to the respective objective of the study:

lCronbach's Alpha (Reliability): Cronbach's Alpha, Split Half, and Gutman reliability coefficients

were computed using PASW 19.0 on data collected through questionnaires to check the reliability

of the data.

lIndependent T � test: T-test were applied to identify the Gender differences in Job Satisfaction

factors.

lOne Way ANOVA: This test was applied to identify the demographic differences (Age and Income)

in Job Satisfaction factors.

lExploratory Factor Analysis (EFA): Principal component analysis was applied to identify the

underlying factors of Job Satisfaction and also to further establish the validity of the measures used

for collecting data.

Data Analysis and Discussion

Demographic Profile of Respondents

Table 2Age of the respondents

95% Confidence Interval for Mean

NMeanStd. Std. Lower Upper Minimum

Deviation ErrorBound Bound

1.009893.704114.191041.4335190.859096.549273.00161.00

2.005993.067810.065071.3103690.444895.690868.00115.00

3.001996.368414.279793.2760189.4858103.251171.00137.00

4.002487.782614.758533.0773781.400594.164766.00117.00

TOTAL20093.085413.25003.9392791.232594.937766.00161.00

Source: Data source through SPSS

Maximum

Table 3Gender of the respondents

gender N Mean Std. Deviation Std. Error Mean

total d mension1 1.00 104 91.6538 14.69348 1.44081

2.00 96 94.6526 11.33510 1.16296

Group Statistics


6


Table 4Income of the respondents

95% Confidence Interval for Mean

NMeanStd. Std. Lower Upper

Deviation ErrorBoundBound

1.0011293.669613.237531.2508391.191096.148273.00161.00

2.002792.222212.295512.3662787.358397.086268.00115.00

3.002995.65521.172692.4461190.6445100.665876.00137.00

4.003289.322613.943672.5043684.208094.437266.00117.00

Total 20093.085413.25003.9392791.233294.937766.00161.00


Reliability of Job Satisfaction

The reliability was computed by using PASW 19 software. Cronbach's Alpha reliability test was

applied to check the reliability coefficients computed for all the items in the questionnaire.

It is considered that the reliability value more than 0.7 is good. As per Table 6, Cronbach's Alpha

value is found to be 0.792, reliability value is higher than the standard value, and therefore, the

questionnaire used to collect data on factors of Job Satisfaction is highly reliable and we can use this in

the present research work.

Minimum Maximum

Table 5

Case Processing Summary

N %

CasesValid 200 100.0aExcluded 0 .0

Total 200 100.0

a. Listwise deletion based on all variables in the procedure.


Table 6

Reliability Statistics

Cronbach's Alpha No. of Items

.792 36


7


Independent T-test

H01 - There is no significant difference between job satisfaction of Male and Female.

The hypothesis was tested using t � test to evaluate the effect of Gender (Male and Female) on Job

Satisfaction.Table 7

Independent Samples Test

Sig-(2 MeanStd. Error

FSig. T Df tailed) Difference DifferenceLowerUpper

totalEqual variances 3.132.078-1.601200.111-2.998791.87308-6.69266.69509

assumed

Equal variances -1.620191.747.107-2.998791.85160-6.65090.65333

not assumed

95% Confidence Interval of the Difference

Levene's Test for Equality of Variances t-test for Equality of Means


In the Table 7, Levene's test was applied to evaluate equality of variance in responses of male and

female respondents. The value 'F' was found to be 3.132 which are significant at 0.078% level. Therefore

the null hypothesis indicating equal variance among groups formed on the basis of Gender (Male and

Female) is not rejected and there was no equal variances were founded true.

The value of 't' was found to be 1.601 which is not significant at .111% level of significance.

Therefore, the null hypothesis indicating that there is no significant difference between job satisfaction of

male and female. Hence, this hypothesis is not rejected.

One -way Anova

Analysis of Variance (ANOVA) is a hypothesis testing procedure that tests whether two or more

means are significantly different from each other. A statistic, F, is calculated that measures the size of the

effects by comparing a ratio of the differences between the means of the groups to the variability within

groups. The larger the value of 'F', the more likely that there are real effects.

H02 - There is no significant difference in job satisfaction on the basis of age.

In the Table 8, the significance value is 0.167 (i.e., p=0.167), which is greater than 0.05 and therefore,

there is no significant difference. The 'F' value calculated for the hypothesis was 1.706, which is not

significant at 0.167 % level. Hence the null hypothesis is not rejected. That shows there was no

significant difference found between job satisfaction on the basis of age of academicians.

8


Table 8ANOVA

Sum of Df Mean FSig.

Squares Square

Between (Combined) 889.066 3296.3551.706.167

GroupsLinear TermUnweighted378.493 1378.4932.179.142

Weighted 288.175 1288.1751.659.199

Deviation 600.891 2300.4461.730.180

Within Groups 33872.481195173.705

Total 34761.548200


H03 - There is no significant difference in job satisfaction on the basis of income.

In the Table 9, the significance value is 0.271 (i.e., p=0.271), which is greater than 0.05 and

therefore, there is no significant difference. The 'F' value calculated for the hypothesis was 1.314, which

is not significant at 0.271 % level. Hence the null hypothesis is not rejected. That shows there was no

significant difference found between job satisfaction on the basis of age of academicians.

Table 9ANOVA

Sum of Df Mean FSig.

Squares Square

Between (Combined) 688.778 3229.5931.314.271

GroupsLinear TermUnweighted208.770 1208.7701.195.276

Weighted 191.292 1191.2921.095.297

Deviation 497.487 2248.7431.424.243

Within Groups 34072.769195174.732

Total 34761.548200


Factor Analysis of Job Satisfaction

The Principal Component Analysis (PCA) was applied with varimax rotation and Kaiser

Normalization on the Job Satisfaction data collected from the Academicians. KMO and Bartlett's tests

were applied to test the suitability of data for Factor Analysis.

9


Table 10KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .796

Bartlett's Test of Sphericity Approx. Chi-Square 3066.383

Df 66

Sig. .000


According to Table 10, Kaiser-Meyer-Olkin measure of sampling adequately indicated KMO value

of 0.796 meaning thereby that the sample size was good enough to treat the sampling data as normally

distributed. KMO value above 0.5 is considered to be high enough to consider the data as normally

distributed. The Bartlett's test was evaluated through chi-square test having Chi-Square value

3066.383 which is significant at 0.000 level of significance, indicating that null hypothesis is rejected.

Therefore it is clear that the item to item correlation matrix was not an identity matrix and therefore, the

data were suitable for Factor Analysis.

Discussion of Factors

There were twelve factors showing Eigen Values over one i.e. 6.854, 2.648, 2.526, 2.309, 1.814,

1.753, 1.458, 1.434, 1.298, 1.229, 1.067 and 1.062. The Factor Analysis test has emerged twelve

important factors including their elements, which are discussed below:

1)Nature of Work

This factor has emerged as the most important determinant of Job Satisfaction with a total variance

of 18.525. This factor includes five major elements (including factor loading value):

lSatisfactory Salary � 0.740

lDisciplinary Procedure � 0.738

lGoals and Objectives � 0.705

lJob Switch � 0.671

lMonetary Returns � 0.448

2)Dynamic Activities

This factor has emerged as the next important determinant of research with a total variance of

7.158. This factor includes four major elements (including factor loading value):

lIgnorance of Academicians � 0.917

lCareer Prospects � 0.804

lWork Responsibilities � 0.607

lAvailability of Resources � 0.491

10


3)Work Stress


6.827. This factor includes five major elements (including factor loading value):

lBetter Career Growth � 0.834

lSharing of Information � 0.758

lSafe Work Place � 0.600

lEffective Meetings � 0.518

lWork Autonomy � 0.462

4)Policies and Procedures


6.241. This factor includes three major elements (including factor loading value)

lEvaluation of Work � 0.783

lSupportive Policies � 0.776

lTraining Sponsorship � 0.642

5)Responsibility and Leadership Style


4.903. This factor includes two major elements (including factor loading value):

lFreedom of Expression � 0.74

lOpportunities to attend Educational Meets � 0.636

6)Skills and Abilities


4.738. This factor includes three major elements (including factor loading value):

lDiverted Self Work � 0.785

lGood Instructions � 0.587

lSenior's Motivation � 0.511

7)Opportunities



lLack of Senior's Concern � 0.793

lParticipation in Decision Making � 0.577

8)Fringe Benefits


3.876. This factor includes four major elements (including factor loading value):

lSatisfactory Working Hours � 0.704

11


Colleagues Co-operation � 0.612

lTraining Sponsorship � 0.515

lSatisfactory Work � 0.721

9)Recognition and Supervision


3.507. This factor includes only one element (including factor loading value):

lPerformance Appraisal � 0.818

10)Job Conditions


3.320. This factor includes three major elements (including factor loading value):

lSatisfactory Benefits � 0.664

lLeadership Style � 0.645

lAwareness of Work � 0.491

11)Increased Work



lIncreased Workload � 0.695

lOther Course � 0.608

12)Promotion


2.871. This factor include only one element (including factor loading value):

lWrong Promotion � 0.733

Conclusion

In general, each private university serves a different purpose on policy impact which provides

highest level of education level at their best. This study shows a number of practical and serious

implications for the management of Private Universities of Central India. Their ability to retain highly

skilled academicians is totally depending upon how they are satisfying them by providing all necessities

and good pay structure.

1)It appeared that female academicians were more satisfied than male academicians, as female

academicians are less demanding at work place in comparison with their counterparts.

2)This study confirms the positive relationship between all the job satisfaction factors.

3)The current study demonstrates that there is a large positive correlation between job satisfactions of

academician on the basis income and age.

4)The management should not be biased while selecting academicians for further promotions and

faculty development programme.

l

12


5)The management should appreciate and provide achievement certificates to academicians in the

form of announcement and meetings, trophy and appreciation letter.

6)The management should strict watch over the equipments and teaching material resources to

avoid unnecessary wastage and loss.

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Satisfaction. New York: Macmillan.

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14

Recent Trend of Profitability in Steel Authority of India Limited

*Dr. Arun Kumar**Shubh Laxmi Srivastava

*(Associate Professor) Department of Commerce, Feroze Gandhi College, Raebareli**Research Scholar, Department of Commerce, Feroze Gandhi College, Raebareli

Steel industry in the country has experienced a sustainable growth since the independence of the country.

Profitability is the key indicator of the company to predict its future. The objective of the study is to assess

the profitability position of SAIL. This paper is focused on examining liquidity and profitability position of

SAIL using the ratio analysis. It is observed from the analysis of various ratios that the profit earning

capacity, liquidity position of SAIL is quite good during the study period and the level of bankruptcy

position is also very low.

Keywords: financial analysis, ratio analysis, steel industry, SAIL.

Introduction

Steel is the backbone for the development of any modern economy and it also plays crucial role in

the human civilization. All major economies in the world are characterized by the existence of a strong

steel industry and developing economies are giving more importance for strengthening of their steel

industry. Steel authority of India limited (SAIL) is one of the largest steel producing company with the

turnover of Rs. 50,348 crore. SAIL is consisting of five integrated steels plants, three special plants, and

the one subsidiary situated in different parts of country. The primary objective of a business unit is to

achieve maximum profit in addition to secondary objective like increasing sales, assets, market share

etc. The higher the profit , the more will be the efficiency with which the business unit runs. Profit

indicates the efficiency with which a business unit utilizes its funds. It should be more than the risk rate of

return. In addition to appropriate use of investment, profit affects the expenses of the firm in terms of

interest payment, the liquidity position of the firm, growth rate of sale, employee productivity, capacity

utilization in case of manufacturing units and the operating expenses. The ability of the company to

manage the profitability and liquidity leads to a good financial performance and health of the company.

Literature Review

Bhunia (2007) made an assessment of management of working capital of Steel Authority of India

Limited and Indian Iron and Steel Company Limited from 1991-92 to 2002-03 with the help of financial

tools and statistical techniques. Findings reveal that both the companies have maintained inadequate

working capital, poor liquidity, and managed 70 inventory and receivables inefficiently during the period

of study.

Dr. S. K. Khartik Titto Varghese, (2011) found that the profitability more or less depends upon the

better utilization of resources and manpower. It is worthwhile to increase production capacity and use

advance technology to cut down cost of production and wage cost in order to increase profitability, not

only against the investment, but also from investor's return point of view.

Elangkumaran and Karthika (2013) studied an analysis of liquidity, profitability and risk for selected

listed food, beverage and tobacco companies on Colombo Stock Exchange in Sri Lanka. The study

identified a positive correlation between liquidity and profitability. The liquidity has significant impact on

profitability.

15


Ms. Hetalgaglani and Dr. Smita Rao (2015) carried a study on the liquidity, profitability and financial

health of Sun Pharmaceutical Industry Ltd. The study focuses on company's liquidity, profitability, trade-

off between liquidity, profitability, risk and financial health using Altman's Z-score test, reveals that there

is moderate correlation between liquidity and risk and profitability and risk and also company is in a

healthy zone.

Raheman and Nasr (2007) have studied the effect of different variables of working capital

management on the profitability of Pakistani firms. Researchers have used Pearson's correlation and

regression analysis for study. The results show that there is a strong negative relationship between

variables of the working capital management and profitability of the firm. They also found that there is a

significant negative relationship between liquidity and profitability and debt used by the firm and its

profitability. Also positive relationship was found between size of the firm and its profitability.

Vijay Kumar and Venkatachalam (1995) studied the impact of working capital on profitability in sugar

industry in Tamil Nadu by selecting a sample of 13 companies over the period 1982-83 to 1991-92 by

applying simple correlation and multiple regression analysis on working capital and profitability ratios.

The study concluded that liquidity ratio, inventory turnover ratio, receivables turnover ratio and cash

turnover ratio affected the profitability of companies under study. The study also revealed that sales and

interest rate also affected working capital and its components.

Objectives of the study

1. To examine the solvency of SAIL.

2. To examine the liquidity of SAIL.

3. To examine the financial health of SAIL.


Research design: Exploratory research design was adopted for present study to analyze and

interpret the available information.

Source of data: The Financial data for the study are drawn purely from the secondary data and the

data has been collected from the annual reports of the company.

Period of the study: The study is covering 5 year duration from 2011 to 2015.

Tools of data analysis: The study uses different financial ratios and statistical tools like Mean,

Standard deviation, coefficient of variance etc.

Table 1: Financial Ratios of SAIL

2010-11

2011-12

2012-13

2013-14

2014-15

Avg

SD

CV

0.49

0.41

0.44

0.41

0.40

0.43

0.3778

0.8786

1.62

0.96

0.88

0.62

0.88

0.992

1.0468

1.0552

14.87%

13.07%

11.94%

12.57%

8.341%

12.172%

12.3550

1.0150

16.04%

13.01%

9.04%

10.61%

9.73%

11.686%

11.9625

1.0236

Year Net Debit to EquityCurrent RatioReturn on Average

Capital EmployedReturn on Average

Net Worth

Source: Calculated Values from Annual Report

16


Interpretation

Table 1 shows that the net debt to equity ratio for SAIL followed a zigzag trend during the period

undertaken for investigation showing a maximum of 0.49 during 2010-11, dropping to 0.41 in the next

year, followed by a small ascend by 0.03 during 2012-13, and ultimately recording the lowest of 0.40

during 2014-15.Average net debt to equity ratio is 0.43 and standard deviation is 0.3778 with a variation

of 0.8786 during the last five years. Current ratio for the year 2010-11 was 1.62 which was maximum

during the period of study. It decreases to 0.96 in 2011-12 dropping to 0.88 in the year 2012-13 and

0.62 in 2013- 14. However it increased to 0.88 that is 41.94% in 2014-15. Average of current ratio is

0.992; standard deviation is 1.0468 with a variation of 1.0552 during the last five years. It shows that the

company failed in maintaining ideal current ratio of 2:1.Return on average capital employed of SAIL for

the financial year 2010-11 was 14.87% that was recorded as maximum ratio during period of

study,13.07% in the following year 2011-12, dropping to 11.94% in 2012-13, a small ascend of 0.63%

during 2013-14 and recorded as lowest of 8.41% during 2014-15. Average is 12.172%, standard

deviation is 12.3550 with a variation of 1.0150 during the last five years. The resulting ratio represents the

efficiency with which the capital is being utilized to generate revenue by which it satisfies the owners that

their money is profitably utilized. Return on average net worth of SAIL for the year 2010-11 was 16.04%

which was recorded as highest during the investigation period, in the following year it was 13.01% in

2011-12 and was recorded lowest 9.04% in 2012-13 then it increases up to 10.61% in 2013-14 and it

decreases to 9.73% in 2014-15.Average is 11.686%, standard deviation is 11.9625 with a variation of

1.0236 during the last five years. It shows that the company is giving more importance towards profit

maximization.

Table 2: Profitability Ratios of SAIL

2010-11

2011-12

2012-13

2013-14

2014-15

Avg

SD

CV

12.88%

9.66%

7.2%

4.71%

6.3%

8.15%

8.6362

1.0596

16.37%

13.04%

10.34%

3.39%

10.18%

10.66%

11.4896

1.0778

11.53%

7.94%

4.86%

5.6%

4.57%

6.9%

7.3735

1.0686

11.87

8.91

5.25

6.33

5.07

7.486

7.9198

1.0579

Year GPR OPR NPR EPS (Rs.)

Source: Calculated Values from Annual Report

Interpretation

Table 2 shows that the gross profit ratio during the year 2010-11 was 12.88% which was recorded

as highest during the investigation period then it dropped to lowest in 2013-14 up to 4.71% and it

increased in the year 2014-15 to 6.3%. Average GPR is 8.15%, Standard deviation is 8.6362 with a

variation of 1.0596. The Operating profit ratio of SAIL for the financial year 2010-11 was 16.37% which

was recorded as highest ratio during the investigation period. It dropped to 3.3% in the year 2013-14

17


which was lowest, it increased by 6.79% in 2014 - 15 and was recorded 10.18%. Average OPR is

10.66%, standard deviation is 11.4896 with a variation of 1.0778 during the period of study.Net profit

ratio of SAIL for the financial year 2010-11 was 11.53% which was recorded as highest during the period

of study. In 2011-12 it decreases up to 7.94%, in 2012-13 it was 4.86% and with minor increase of

0.74% and was recorded at 5.6% in 2013-14. It decreases to 4.57% in 2014-15.Average of NPR was

6.9% standard deviation was 7.3735 with a variation of 1.0686.Earning per share was Rs.11.87 in 2010-

11 which was highest during the period of study. It decreases to Rs. 8.91 in 2011-12 and it was Rs.5.25

in 2012-13. It increases up to Rs.6.33 in 2013-14. It was recorded lowest Rs.5.07 in 2014-15.Average

EPS is Rs.7.486; standard deviation is 7.9198 with a variation of 1.0579.

Conclusion

The profitability of a company plays prominent role for the survival and growth of a company

Profitability ratio observed has been positive but it varied frequently during the period of study. Liquidity

plays a vital role in survival of a business. Some describe it as solvency, but it would be better if the term

'solvency' is reserved for �ability to survive in the long run�. From the above analysis it can be concluded

that the liquidity position of SAIL Company was below the traditional standards. It can be concluded that

the overall financial health of SAIL is good.

References

lMohan Kumar M.S. and Vasu V (2016) �A study on financial health of Steel Authority of India Ltd� Imperial Journal of

Interdisciplinary Research (IJIR) Vol.2, Issue-2 , 2016.

lChandra, H. and Selvaraj, A., (2013) �A study on financial health of selected Indian steel companies� Journal of business

management studies, 9(1) Jan-June 2013, pp 36-42.

lSumita Sinku and Dr. Prashant Kumar(2014) �Analysis of Financial Health of Steel Authority of India Limited� Industrial

Engineering Letters, Vol.4, No.12, 2014.

lM.Krishna Moorthi , Dr.M.Ramesh, N.Bhanupriya (2012) �Long term solvancy(leverage) analysis of selected steel companies

in India � an empirical study� international journal of management research and review Volume 2/Issue 4/Article No-7/525-

538 April 2012.

lwww.Sail.co.in

lwww.google.com

18

Comparative Study of Work-Life Balance Practices of State Bank of India and Housing Development Finance Corporation

*Research Scholar Faculty of Commerce, BHU

*Pooja Singh

The main objective of this paper is to study the work-life balance practices of Indian banks. It is a

comparative study of public and private sector banks. The State Bank of India (public sector bank) and

Housing Development Finance Corporation bank (private sector bank) was selected for the study. The

data were collected keeping in consideration features such as gender and positions held in the

organization. Factors such as satisfaction of work, flexible working conditions, work life balance programs,

work pressure/stress and long working hours etc. are taken into consideration for evaluation of

effectiveness of work-life balance practices of these banking organizations.

There was total of 209 banking employees filling the questionnaires, out of which 109 respondents belong

to SBI and remaining 100 respondents belong to HDFC Bank. Snowball sampling was used for collection

of data. Both primary and secondary data were used for completion of this paper.

The finding shows that a SBI work-life balance practice is more effective than HDFC bank work-life

balance practice. This research can be beneficial for the banking sector to improve their policies, benefit

programs and pay structures to ensure smooth and better work-life balance of their employees.

Keywords- working conditions, pressure of work, long working hours, work-life balance.

Introduction

�The highest reward for a person's work is not what he gets from it; but what he becomes by it�. -Thomas Carlyle

The overall quality of life in the contemporary world is very much affected by the values associated

with the work-life, i.e. the field of work from which we earn our livelihood. The work-life shapes attitudes,

aspirations, life-goals, priorities and values in human being (Tripathi, 2006).

In a more theistic view, work is worship. It is an offering to God, a way of serving His creation.

Stephen Covey also remarks, all human roles have several dimensions such as physical, mental, social,

ethical and spiritual. These should all be harmoniously balanced, in work-life as well as in personal life.

It is no doubt to say that, the entry of private and foreign banks has brought many strategic

changes and challenges in the Indian banking sector. The hazards of work-life imbalance are evident in

the banking industry. It is no doubt to say that, employees in the banks take painful effort to deliver

the multiple needs of its customers. Work deadlines are getting tighter and the individual's jobs are

loaded and added with quality output. Due to work pressure, it becomes exceedingly difficult to

maintain balance between professional and personal life (Venkatapathy et. al., 2014). The functions

and efficiency of banking business is dependent on the capabilities and competencies of

employees employed in the banking organization.

If we talk about human resource management system of Indian banks, then it is very necessary to

throw light on challenges faced by Indian banks. These challenges are related with recruitment, training

and retraining, retrenchment, and work-life balance management and so on. It is true that, the banking

jobs are very hectic in nature, so maintain effective work-life balance is very necessary for employees

and banks both Work-life balance is a concept which includes proper prioritizing between 'work' (career

19


and ambition) and 'lifestyle' (health, pleasure, leisure, family and spiritual development/meditation).

Work-life does not mean that there must be equal balance across all aspects of an individual's life. The

best work-life balance will be different for each person. There is no one size fits all in work-life balance.

Goyal and Babel (2015) in his paper considered 'time management' and 'stress management' in the

concept work-life balance. Kumari, (2012) said that, the concept of work-life balance is based on the

notion that paid work and personal life should be seen less as competing priorities than as

complementary elements of a full life. Rajni and Ravinder, (2015) said, Work-life balance means the

stability between responsibilities at work and responsibilities outside paid work; having a work-life

balance means that this stability is in the right position for the individual concerned. It is about managing

our work commitments with career goals, and our responsibilities at home and the wider population.

Work life and personal life are inter-connected and interdependent. Work-life and personal life are the

two sides of the same coin.

For studying the work-life balance practices of banks, researcher, in this paper categorized it into

four major heads such as satisfaction of work, stress/pressure of work, timing and duration of work,

initiatives taken by the banking organizations to manage work-life balance of their employees Keeping

these variables into consideration we fixed our objectives and used appropriate methodology to achieve

the objectives.

Objectives of the Study

1.To study the work-life balance practices of Indian Banks.

2.To identify the factors which affect the work life balance of banking employees?

3.To examine the effectiveness of work-life balance practices of State Bank of India (SBI) and

Housing Development Finance Corporation Bank (HDFC Bank).

Hypotheses of the Study

H1: AS compared to SBI employees', HDFC Bank employees are satisfied with their work.

H2: As compared to HDFC bank, SBI bank employees take more stress for their work.

H3: SBI's employees' working day's or hours is more in comparison to HDFC Bank's employees.

H4: HDFC Banks takes more initiative to manage work-life of their employees as compared to SBI.

Methodology of the Study

Snowball sampling method is used for collecting the data. There are total 209 respondents filling the

questionnaires in which 109 respondents belongs to SBI and the remaining 100 belongs to HDFC Bank.

Out of total 209 respondents, 128 (61.2%) are male and remaining 81 (38.8%) are female. In 209

respondents, 152 respondents (82 employees are SBI's and 70 are HDFC's) belong to lower and middle

level position and 57 (27 employees are SBI's and remaining 30 are HDFC's) are upper level position.

Primary data were collected through questionnaires with 5 point Likert scale where A = strongly agree, B

= agree, C = neutral, D = disagree, E = strongly disagree. While secondary data was collected from

books, research journals and web sites etc.

Literature Review

Patwa (2011), in his paper has focused on the importance of work-life balance. Accordingly,

maintaining a healthy balance between personal and professional life will help the individual to achieve

their personal and professional goals.

20


Negi and Singh (2012) in his paper discussed the causes responsible for imbalance of work-life of

banking employees. Their study is based on comparative study of work-life balance between SBI, PNB

and Allahabad Bank (public sector banks) and HDFC, ICICI and Axis Bank (private Sector banks). They

also found that employees of public sector banks are happier than private sector banking employees

and women banking employees can not pursue their career with same velocity after marriage and child

birth.

Raisinghani and Geswami (2014) said that globalization of Indian economy is responsible for

workloads and long working hours and it creates challenges for banking sector in maintaining work-life

balance.

Ashwini and Kumarswami (2014) in their paper also found that more than half banking sector

employees are worried about their work and as per their opinion present banking environment

challenges are responsible for imbalance in work-life.

Kumara (2012) study revealed that work-life balance is related with job satisfaction of employees.

Rajni and Ravinder (2015) said that demographic changes, participation of employers in labour

market and changes in traditional roles etc. are responsible for giving more importance to work-life

balance maintenance.

Tiwari and Duggal (2015) in their paper try to find out the relationship between human resource

practices and work-life balance. Accordingly, improvement or decline in human resource practices will

significantly improve/decline the work-life balance of the employees.

Data Analysis and Interpretation

Table 1. Categorization of total respondents

Organization's name Categories FrequencyPercentage

State Bank of India (SBI) Gender Male 67 61.5

Female 42 38.5

PositionsLower& Middle level 82 75.2

Upper level 27 24.8

Housing Development Gender Male 61 61

Finance Corporation Bank Female 39 39

PositionsLower& Middle level 70 70

Upper level 30 30

With the help of above table 1, researcher categorized the total respondents on gender and level of

position held in their respective organization. This table revealed that out of total 209 respondents, 109

belongs to SBI, in which 67 are male employees (61.5%) and 42 are female (38.5%) employees. And if

we further divided 109 employees on position basis we found that 82 employees (75.2%) are in lower

and middle level and remaining 27(24.8%) belongs to upper level of SBI. Similarly in case of HDFC Bank,

out of 100 respondents, 61 are male (i.e. 61%) and 39 are female employees (39%). If we categorized

21


100 respondents on position basis, we found that 70 respondents (70%) belong to lower and middle

level and remaining 30 are belonging to upper level (i.e. 30%).

Table 2. Satisfaction of work

(a) Descriptive Statistics

Bank's name N Mean S. D.

SBI 109 2.74 1.15

HDFC 100 2.03 0.65

(b) Independent Sample test table

Particulars Levene's test t-test for equality of meanfor equality of variance

F Sign. t-value d.f. Sign. 2-

tailed

Equal 72.55 .0005.437 207 0.000

variances assumed

Equal 5.557 197.0420.000variances not

assumed

The descriptive statistics table of above table 2, show the mean and S.D. of satisfaction of work of

SBI employees' are 2.74 and 1.15 whereas HDFC employees' are 2.03 and 0.65 respectively. In

independent sample test table, F value is 72.55, sign. is 0.000, degree of freedom is 207 and sig. 2-tailed

is 0.000. The sign. 2-tailed (p value) is less than 0.05 (0.000<0.05), so we reject our first null hypotheses.

The analysis revealed that SBI employee's mean of work satisfaction is more than mean of HDFC bank

employee's. So, we can conclude that work satisfaction among employees of SBI is more than HDFC

employees.

Table 3. Pressure/stress of work

(a)Descriptive statistics


SBI 109 2.26 1.13

HDFC 100 3.52 1.15


SBI 109 5.22 1.81

HDFC 100 5.93 1.67



tailed

Equal 1.011 .316-8.020 207 0.000variances assumed

Equal -8.013 204.6030.000variances not assumed

22


(b) Independent sample test

With the help of table 3, researcher makes an attempt to analyze the pressure/stress of work among

employees of SBI and HDFC banks when they are not actually at work or travelling. In this analysis,

descriptive statistics reveal that mean and S.D. of pressure/stress of work among SBI employees' are

2.26 and 1.13 whereas in case of HDFC bank employees' they are 3.52 and 1.15 respectively.

Independent sample test table provided F value 1.011, sign. is 0.316, degree of freedom is 207 and sign.

2-tailed is 0.000. Here researcher found that sign. 2-tailed (0.000) is less than 0.05, and we reject our

second null hypotheses.

In our data analysis, mean of work pressure of SBI employees' is 2.26 is less than HDFC bank

employees' i.e. 3.52. So, we can say that HDFC bank employees suffer more pressure/stress of work in

comparison to SBI employees'.

Table 4. Timing/ Duration of work (long hours or over time and even on holiday)





tailed

Equal 0.432 .512-2.935 207 0.004variances assumed

Equal -2.946 206.9940.004variances not assumed

23


The above table 4 analyzes the duration of work among employees of SBI and HDFC bank. In

descriptive statistics table, mean and S.D. of duration of work of SBI employees are 5.22 and 1.81 and

HDFC employees' are 5.93 and 1.67 respectively. The independent sample test table showed F value is

0.432, sign. is 0.512, degree of freedom is 207 and sign. 2-tailed is 0.004. The sign. 2-tailed is less than

0.05 (i.e. 0.004<0.05) and we reject our third null hypotheses. If we compared the mean of

duration/timing of both banks, we found HDFC mean i.e. 5.93 is greater than SBI mean i.e. 5.22. So it is

concluded that HDFC bank employees' duration/timing of work is more in comparison to SBI

employees'.

Table 5. Initiatives taken by the organization to ensure better work-life balance



SBI 109 11.69 3.38

HDFC 100 9.96 2.37




tailed

Equal 17.225 .0005.152 207 0.000variances assumed

Equal 5.228 194.0170.000variances not assumed

The descriptive statistics of above table 5 show the mean and S.D. of initiatives taken by SBI to

manage the work-life balance of their employees' are 11.69 and 3.38 where as HDFC bank are 9.96 and

2.37 respectively. Independent sample test table provided that F value 17.23, sign. is 0.000, degree of

freedom is 207 and sign. 2-tailed is 0.000. The sign. 2-tailed is less than 0.05 and we reject our fourth null

hypotheses. When we compared the mean of initiatives taken by bank to manage the work-life balance

of their employees, we found that SBI mean i.e. 11.69 is more than HDFC mean 9.96. And on the basis of

above result, we can say that SBI make more initiatives to manage the work-life balance of their

employees.

Findings of the study

On the basis of above four variables (satisfaction of work, pressure/stress of work, duration/timing

of work and initiatives taken by banks to manage work-life balance) analysis, we found that SBI practices

of managing work-life balance of their employees is better than HDFC bank work-life balance practices.

24


And we reject our hypotheses i.e. the practices of effective work-life balance are more effective of HDFC

Bank as compared to SBI.

Conclusion

The purpose of this study was to examine the work-life balance practice of State Bank of India (a

leading public sector bank) and HDFC Bank (a leading private sector bank) and to identify factors which

influences the work life balance of banking employees (it may includes long duration of work, pressure

of work etc.) The research findings show that work life balance practices of State Bank of India is more

effective than HDFC bank and employees of State Bank of India are more satisfied and happy in

comparison to HDFC Bank. We all knows that in any individual life's maintaining work-life balance is very

essential for living better and smooth life. So, it should be the responsibility of HR department of an

organization to give more focus on maintaining the work-life balance of their employees employed in the

organization. Mundra, S. S. (Deputy Governor of RBI), 2015 in his lecture also suggested that the

banking personnel, across the cadres need to be suitably trained to acquire necessary skill set to

perform their jobs more efficiently and manage their work-life balance efficiently.

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part of Memorial Lecture series launched by State Bank of Mysore in the Memory of his highness Sri Nalwadi Krishnaraja

Wadiyar.

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Indian Banking Sector�, Asian Journal of Research in Banking and Finance, Vol. 5, No. 6.

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Sector Banks�, IJEMR, Vol. 2, Issue 2.

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Karnataka�, Global Journal for Research Analysis, Vol. 3, Issue 2.

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Research in Commerce, Economics & Management�, Vol. 2, Issue 6.

lPatwa, (2011), Work-life Balance: A Cross Sectional Study of Banking & Insurance Sector�, International Journal of Research

in Commerce, Economics & Management, Vol. 1, Issue 3

25

*Research Scholar, Jiwaji University, Gwalior (M.P)

**Professor, Commerce, SOS Jiwaji University, Gwalior (M.P.)

The act of purchasing products or services from the Internet is called online shopping. In this

generation of fast moving lifestyle, customers are busier than what they were few years back. Today

both urban and rural areas enjoy internet facilities. It is precisely for this reason customers are also

purchasing the products or services online. Online shopping has grown in popularity over the years,

mainly because people find it convenient and easy to bargain and can shop comfortably from their

home or office. Customer satisfaction in online shopping has been an eminent research topic due to

absence of face to face interaction between the customer and service provider. This study is

undertaken to identify the factors that may influence customer's online shopping satisfaction. The

literature review has been done to uncover the varied factors affecting the mind-set of the customers

while shopping online. A survey has been conducted by distributing questionnaires in selected cities

of India to gather data for this research. The study is focused on satisfaction on online shopping and

online buying behaviour. The study has a sample size of 110 respondents. After collecting the data,

the data were classified, tabulated and codified. Necessary statistical tools such as Percentage

Analysis have been used to interpret the data. Findings suggests that the success of any e-

commerce company in India depends upon its popularity, its branding image, its unique and fair

policies, and its customer relations etc.

Keywords: Online shopping, Customer Loyalty, E-commerce, Customer satisfaction etc.

Introduction

In present time online shopping is the new trend of shopping in India that is used to refer

to computer-based-shopping or E-shopping which is most similar to Internet banking or

E-banking. Over the past few years, online shopping has increased (percentage of online buyer's

in India). New concept of the online shopping is a great example of the business revolution in

India. We can say that online shopping in India is currently experiencing a period of rapid

development. E-shopping in India is a rich segment waiting to be explored. Actually, E-shopping

is a form of E-commerce. In online shopping, buyers (consumers) purchase the products

(Like: - Apparel, electronic appliances, footwear, Home and Kitchen Appliances, etc.) directly

from the E-sellers by using a web browser.

Customer Satisfaction

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting

from the evaluation of services provided by an organization to an individual in relation to his

expectations. Service providers frequently place a higher priority on customer satisfaction,

because it has been seen as a prerequisite to customer retention. As a positive outcome of

marketing activities, high customer satisfaction leads to repeat visitation to stores, repeat product

purchases, and word-of-mouth promotion to friends, while low customer satisfaction has been

associated with complaining behaviour. A satisfied customer often stays loyal longer, and is

A Study on the Customer Satisfaction Towards Online Shopping

*Ankit Gupta

**Dr. Umesh Holani

26


likely to patronize the firm in future. Generally, there are two general conceptualizations of

satisfaction, namely, transaction specific satisfaction and cumulative satisfaction. Transaction-

specific satisfaction is a customer's evaluation of his or her experience and reactions to a particular

service encounter while cumulative satisfaction refers to the customer's overall evaluation of the

consumption experience to date.

Online Shopping

Online shopping is a form of electronic commerce which allows consumers to directly

buy goods or services from a seller over the Internet using a web browser. Consumers find

a product of interest by visiting the website of the retailer directly or by searching among

alternative vendors using a shopping search engine, which displays the same product's

availability and pricing at different e-retailers. As of 2016, customers can shop online using a

range of different computers and devices, including desktop computers, laptops, tablet

computers and smart phones. An online shop induces the physical analogy of buying products

or services at a regular basis and this process is called business-to-consumer (B2C) online

shopping. When an online store is set up to enable businesses to buy from other businesses, the

process is called business-to-business (B2B) online shopping. A typical online store enables

the customer to browse the firm's range of products and services, view photos or images of

the products, along with information about the product specifications, features and prices.

Online stores typically enable shoppers to use "search" features to find specific models, brands

or items. Online customers must have access to the Internet and a valid method of

payment in order to complete a transaction, such as credit cards, debit card, net banking etc. For

physical products (e.g., paperback books or clothes), the e-tailer ships the products to the

customer; for digital products, such as digital audio files of songs or software, the e-tailer

typically sends the file to the customer over the Internet. The largest of these online retailing

corporations are Alibaba, Amazon, and eBay etc.

Review of Literature

Online shopping has grown in popularity over the years, mainly because people find it

convenient and easy to bargain and shop comfortably from their home or office. According to

Khushboo Makwana, Khushboo Dattani and Himanshu Badlani, (2013), one of the most enticing

factors about online shopping, particularly during the holiday season is, it alleviates the need to

wait in long lines or search from store to store for a particular item. Ankur Kumar Rastogi, (2010)

studied that with technological up-gradation, online purchase has gained popularity. Online

purchasing behaviour varies to a great extent in comparison with the traditional buying, as an

analysis of the online purchasing shows. Gayathiri. R, Balachandran. S and Usha. S, (2014) also

examined that today both urban and rural areas enjoy internet facilities in this generation of

technological up-gradation and the consumers buying behaviour has changed to a great extent

.Companies are also well aware of these facts and that's why they are also giving greater

importance to online consumer behaviour. There was a time when people had ample time to visit

27


the store and purchase the products from the stores but, with the changing business scenario

the customers prefer the electronic purchase of goods or services as it saves time.

The facility of online purchasing has allowed customers to identify the different types of

products available in the global market, the new inventions that have taken place and evaluate

the product according to their prices just by a click of the mouse, without wasting precious

time in walking to the retail store. Due to rapid globalization, all types of products are available

on the net. Mohanapriya.S and Anusuya. D, (2014) studied that all types of commodities and

services are being sold through the websites. Goods and services, consumer durables, books,

audio and video cassettes and services alike and air tickets can also be purchased online.

With the wonderful expansion of the internet, online shopping is also on the rise, showing

fabulous potential for future growth, as well. Dr. Mubin Kiyici, (2012) identified that various

businesses are now trying to globalize their sales and marketing efforts for their products and

services all through the net, patrons have turn in to the prime receiver in this online shopping

bang. Na Li and Ping Zhang, Syracuse University, (2002): the study entitled �Consumer Online

Shopping Attitudes and Behaviour: An Assessment of Research� In this paper, the author has

defined a general framework to analyze the online shopping consumer attitude and behaviour.

The current status of studies of online shopping attitudes and behaviour is investigated through

an analysis of 35 empirical articles found in nine primary Information Systems (IS) journals and

three major IS conference proceedings. Taxonomy is developed based on our analysis. A

conceptual model of online shopping is presented and discussed in light of existing empirical

studies. Finally they conclude by attitudes, intention to shop, decision making, online purchasing

and customer satisfaction towards online shopping. Mary Wolfinbarger, Mary Gilly, University

of California Irvine: the study entitled �Consumer Motivations for Online Shopping� The main

aim of the study: goal oriented motives are more common among online shoppers than are

experiential motives. This study investigates the motivation of online business and also concluded

the process and way of online purchasing behaviour and the motivation


l Objectives of the study

1)To know the specific reasons why customers go for online shopping.

2)To find out the customer's satisfaction level for services provided by the online sellers.

3)To analyse improvements and measures which are followed up by online sellers?

lResearch Design

The research design used for the study is descriptive. Descriptive research studies are those,

which are concerned with describing the characteristics of a particular individual or group. The

studies concerned with specific prediction with narration of facts and characteristics concerning

individual group or situation.

28


l

The total population size is indefinite since it includes online shoppers throughout India.

lSample Size

This refers to the number of people/individuals to be selected from the total population to

constitute the sample. The sample size used for study is 110 respondents.

lSample Design

It is a definite plan for obtaining a sample from a given population. It refers to the technique the

researcher adopts in selecting items for the sample. The respondents are selected based on

convenient sampling.

lStatistical Tools

The data collected through questionnaires were analyzed using simple percentage analysis

and ranking analysis.


Table: 1: Gender of the Respondents

Population Size

S. No. Gender of the RespondentsNo of Respondents Percentage

1 Male 64 58

2 Female 46 42

Total 110 100

Interpretation

From the above table 1, it reveals that 58% of the respondents are male and 42% of the

respondents are female

Table: 2: Age of the Respondents

S. NoAge group of the RespondentsNo of Respondents Percentage

1 Below 20 years 40 36

2 25 � 30 years 55 50

3 31 - 35 years 02 02

4 Above 35 years 13 12

Total 110 100

Interpretation

Above table 2 depicts that 36% of the respondents are falling under below 20 years, 50% of the

respondents are falling under the category of 25 � 30 years old and 2% of the respondents are falling

under 31� 35 years and 12% of the respondents are above 35 years.

29


Table 3: Occupational Status of the Respondents

S. No.Occupation of the RespondentsNo of Respondents Percentage

1 Student 50 46

2 Business 22 20

3 Service 18 16

4 Professional 20 18

Total 110 100

Interpretation

Above table 3 reveals that 46% of the respondents are students, 20% of the respondents

are businessmen, 16% of the respondents are in service, and 18% of the respondents are

professionals.

Table 4: Educational Level of the Respondents

S.No. Educational level of the RespondentsNo of RespondentsPercentage

1 School (Intermediate) 20 18

2 Graduate 35 32

3 Post Graduate 44 40

4 Illiterate 11 10

Total 110 100

Interpretation

Above table 4 reveals that 18% of the respondents are educated up to intermediate at school level,

32% of the respondents are graduates, 40% of the respondents are post graduates, and 10% of the

respondents are illiterates.

Table 5: Monthly Income of the Respondents

S. No.Monthly Income of the RespondentsNo of RespondentsPercentage

1 Below Rs.15,000 42 38

2 Rs.15,001 to Rs. 20,000 24 22

3 Rs.20,001 to Rs. 30,000 24 22

4 Above Rs.30,000 20 18

Total 110 100

30


Interpretation

Above table 5 reveals that 38% of the respondents are earning the monthly income below Rs.15,

000, 22% of the respondents are earning the monthly income Rs.15,001 � Rs.20,000, 22% of the

respondents are earning the monthly income Rs.20,001 � Rs.30,000, 18% of the respondents are

earning the monthly income above Rs.30,000

Table 6: Online Shopping Websites Visited By the Respondents

S.No. Online shopping Websites No of RespondentsPercentage

1 Flipkart.com 24 22

2 Amazon.com 19 17

3 eBay.com 13 12

4 Myntra.com 09 08

5 Snapdeal.com 21 19

6 Olx.com 08 07

7 Others 16 15

Total 110 100

Interpretation

Above Table 6 reveals that 22% of the respondents visited Flipkart.com, 17% of the respondents

visited Amazon.com, 12% of the respondents visited eBay.com, 8% of the respondents visited

myntra.com, 19% of the respondents visited Snapdeal.com, 7% of the respondents visited Olx.com

and 15% of the respondents visited other websites.

Table 7: Products Purchased By the Respondents

S. NoProducts purchased by the respondentsNo of RespondentsPercentage

1 Electronics 29 26

2 Mobiles 51 46

3 Computer 09 08

4 Home appliances 18 16

5 Games 04 04

6 Garments 11 10

7 Footwear 19 18

8 Watches 19 18

9 Jewels 07 06

10 Men's Accessories 26 24

11 Women's Accessories 24 22

12 Toys 04 04

13 Baby care 04 04

14 Books 09 08

Total 110 100

31


Interpretation

Above table 7 reveals that 26% of the respondents purchased Electronic goods via online channels,

46% of the respondents purchased Mobiles via online channels, 08% of the respondents purchased

Computers via online channels, 16% of the respondents purchased Home Appliances via online

channels,04% of the respondents purchased Games via online channels, 10% of the respondents

purchased Garments via online channels, 18% of the respondents purchased Footwear via online

channels, 18% of the respondents purchased Watches via online channels, 06% of the respondents

purchased Jewels via online channels, 24% of the respondents purchased Men's Accessories via

online channels, 22% of the respondents purchased women's Accessories via online channels, 4% of

the respondents purchased toys via online channels, 04% of the respondents purchased Baby care via

online channels and 8% of the respondents purchased Books via online channels.

Table 8: Preference of the Respondents to Online Shopping

S. No. Preference No of RespondentsPercentage

1 Time saving 62 56

2 Information Availability 11 10

3 Less Stress 20 18

4 Less Expensive 13 12

5 Best Offers 20 18

6 Service Quality 04 04

7 Easy Ordinary System 04 04

Total 110 100

Interpretation

Above table 8 reveals that 56% of the respondents prefer online shopping for time saving, 10% of

the respondents prefer online shopping to get information regarding the products, 18% of the

respondents prefer online shopping to reduce stress, 12% of the respondents prefer online shopping as

products are available at reasonable rates, 18% of the respondents prefer online shopping for Best

offers, 4% of the respondents prefer online shopping for better service quality, 4% of the respondents

prefer online shopping for easy buying system.

Table 9: Frequency of Purchase of the Respondents through Online Shopping

S.No. Frequency of Purchase No of Respondent Percentage

1 Daily 13 12

2 Weekly 20 18

3 Monthly 48 44

4 Yearly 29 26

Total 110 100

32


Interpretation

Above table reveals 9 that 12% of the respondents make purchase on Online Shopping Daily, 18%

of the respondents make purchase on Online Shopping Weekly, 44% of the respondents make

purchase on Online Shopping Monthly and 26% of the respondents make purchase on Online

Shopping Yearly.

Table 10: Facts Considered By the Respondents before Online Shopping

S. No.Facts considered before online ShoppingNo of RespondentsPercentage

1 Product Rating 31 28

2 Product review 33 30

3 Advise of offline store 08 07

4 Comparison of price 25 23

5 Referred by friends 13 12

Total 110 100

Interpretation

Above table 10 reveals that 28% of the respondents consider product rating before Online shopping,

30% of the respondents consider product review before Online shopping, 7% of the respondents

consider advise of offline store before Online shopping, 23% of the respondents compares the price

before Online shopping and 12% of the respondents refers friends before Online shopping.

Table 11: Detailed Information about the Product

S. No. Opinion No of RespondentsPercentage

1 Strongly Disagree 02 02

2 Disagree 09 08

3 Neither Agree Nor Disagree 21 19

4 Strongly Agree 22 20

5 Agree 56 51

Total 110 100

Interpretation

Above table 11 reveals that 2% of the respondents Strongly Disagree with the detailed information

about the products in Online shopping, 8% of the respondents Disagree with the detailed information

about the products in Online shopping, 19% of the respondents Neither agree nor Disagree with the

detailed information about the products in Online shopping, 20% of the respondents Strongly Agree

with the detailed information about the products in Online shopping, 51% of the respondents Agree

with the detailed information about the products in Online shopping.

S. No. Opinion No of RespondentsPercentage

1 Strongly Disagree 02 02

2 Disagree 02 02

3 Neither Agree Nor Disagree 34 31

4 Strongly Agree 18 16

5 Agree 54 49

Total 110 100

33


Table 12: Quality of Information Provided In Online Shopping

Interpretation

Above table 12 reveals that 2% of the respondents Strongly Disagree with the Quality of Information

provided in Online shopping, 2% of the respondents Disagree with the Quality of Information provided in

Online shopping, 31% of the respondents Neither agree nor Disagree with the Quality of Information

provided in Online shopping, 16% of the respondents Strongly Agree with the Quality of Information

provided in Online shopping, 49% of the respondents Agree with the Quality of Information provided in

Online shopping.

Table 13: Problems Faced By the Respondents While Online Shopping

S. No. Problems No of RespondentsPercentage

1 Product did not arrive at all 09 08

2 Product arrive in damage condition 18 17

3 Wrong product were sent 09 08

4 Not quality goods and services 17 15

5 Others 04 04

6 None of these 53 48

Total 110 100

Interpretation

Above table 13 reveals that 8% of the respondents faced the problem of product did not arrive at all

in online shopping, 17% of the respondents faced the problem of receiving the product in damaged

condition in online shopping, 8% of the respondents faced the problem of receiving the wrong

products in online shopping, 15% of the respondents faced the problem of receiving the products and

services of bad quality in online shopping, 4% of the respondents faced other problems in online

shopping, 48% of the respondents did not face any of the above problems in online shopping

S.No.Ranking of the services in online shoppingTotal Score Rank

1 Payment security 352 6

2 Product delivery 376 4

3 Personal information privacy 312 8

4 Warranties, return policies 364 5

5 Convenience 430 1

6 Mode of payment 348 7

7 Time saving 406 2

8 Attractive offers 390 3

34


Table 14: Ranking of the Services in Online Shopping

Interpretation

Above table 14 reveals that first rank given by the respondents for the Convenience in online

shopping. Second rank given by the respondents for the Time saving in online shopping and third rank

given by the respondents for the Attractive offers in online shopping, fourth rank given to the Product

delivery in online shopping, fifth rank given by the respondents to the Warranties, return policies in online

shopping, sixth rank given by the respondents to the payment security in online shopping, seventh rank

given by the respondent to the mode of payment in online shopping and finally eighth rank given by the

respondents to the personal information privacy in online shopping

Findings

l58% of the respondents are male.

l50% of the respondents are falling under the category of below 25 � 30 years age group.

l46% of the respondents are students.

l40% of the respondents are post graduate level

l38% of the respondents are earning the monthly income below Rs.15, 000 only

l22% of the respondents visited Flipkart.com.

l46% of the respondents purchased Mobiles via online channels.

l56% of the respondents Prefer online shopping for time saving.

l44% of the respondents make purchase on Online Shopping Monthly.

l30% of the respondents consider product review before online shopping.

l51% of the respondents Agree with the detailed information about the products in online shopping.

l49% of the respondents agree with the Quality of Information provided in online shopping.

l48% of the respondents did not face any of the problems in online shopping. First rank given by the

respondents for the Convenience in online shopping.

35


Limitations of the Study

l

lThe data collected for the research is a primary data taken from the respondents. There is chance

for personal bias. So the accuracy is questioned.

lFew renowned shopping websites are considered at the time of asking the questions.

Scope for Future Research

The increasing reach of the Internet and internet savvies among customers has resulted in more and

more retailers providing online avenues for customers to make purchases at the click of the mouse.

Customers not only use the internet to make purchases but also to search for information about the

product or service being purchased. Internet has changed the way of conducting business. Many

businesses have started building up their strategies around the internet.

This study deals with the customers' perceptions towards the following aspects of online shopping

and how the presence or lack of these aspects in an online shopping environment affects customer

satisfaction.

lProduct categories that customers purchase online

lQuality and availability of the product

lMode and Speed of delivery of the product

lProduct price / Offers provided for online shoppers

lPayment options available for the customers

lShipping, Return and Exchange policies

lFeatures of the shopping website such as

lDesign

lInformation provided

lAccessibility

lEase of use

Scope of this research study is wide and other variables which are not studied in this study can be

considered for further research.

Conclusion and Suggestions

Online shopping is becoming more popular day by day with the increase in the usage of World Wide

Web known as www. Understanding customer's need for online selling has become challenge for

marketers. Specially understanding the consumer's attitudes towards online shopping, making

improvement in the factors that influence consumers to shop online and working on factors that affect

consumers to shop online will help marketers to gain the competitive edge over others.

In conclusion, having access to online shopping has truly revolutionized and influenced our society

as a whole. This use of technology has opened new doors and opportunities that enable for a more

The study is based upon the consumer behaviour of online shopping in different situations.

36


convenient lifestyle today. Variety, quick service and reduced prices were three significant ways in which

online shopping influenced people from all over the world. However, this concept of online shopping led

to the possibilities of fraud and privacy conflicts. Unfortunately, it has shown that it is possible for

criminals to manipulate the system and access personal information. Luckily, today with the latest

features of technology, measures are being taken in order to stop hackers and criminals from

inappropriately accessing private databases. Through privacy and security policies, website designers

are doing their best to put an end to this unethical practice. By doing so, society will continue to depend

upon online shopping, which will allow it to remain a tremendous success in the future. Efforts need to be

taken to educate the online buyers on the steps that need to be undertaken while making an online

purchase. Moreover, the feedback of an online buyer should be captured to identify flaws in service

delivery. This can be done through online communities and blogs that serve as advertising and

marketing tools and a source of feedback for enterprises.

References

l

Multidisciplinary Research, Vol-II, Issue-XI, Nov-2014.

lAnkur Kumar Rastogi, (2010), 'A study of Indian online consumers and their buying behaviour', International Research

Journal, July 2010, ISSN- 0975-3486, RNI: RAJBIL 2009/30097, Volume I, Issue.10, pp. 80-82.

lArnold, E. J. and Wallendorf, M. "Market- Oriented Ethnography: Interpretation Building and Marketing Strategy

Formulation," Journal of Marketing Research, (31) November 1994.

lDahiya Richa, (2012), 'Impact of demographic factors of consumers in online shopping behavior: A study of consumers in

India', I.J.E.M.S., Volume 3, Issue. 1, pp. 43-52, ISSN 2229-600X.

lDavid L.Loudon(2008), consumer behaviour, Tata Mc Graw- Hill Publishing company ltd. New Delhi.

lGayathiri. R, Balachandran. S and Usha. S, (2014), 'Gender specific behavioral difference of citizens in online shopping',

International Journal of Advance Research in Computer Science and Management Studies, Volume 2, Issue.3, March 2014,

pp.183-191.

lKhushboo Makwana, Khushboo Dattani and Himanshu Badlani, (2013), 'A customer perception towards online shopping In

India', Altius Shodh Journal of Management and Commerce, Volume 3, Issue. 4, pp.95-101, ISSN: 2348-8891.

lM.V.Sathya Bama and M.Ragaprabha 'Satisfaction of Women Consumers' Vignettes of Research, Vol-III, Issue-I, Jan-2015,

pp.29-34.

lMohanapriya.S and Anusuya.D, (2014), 'A study on customer preferences and satisfaction towards selected online websites

(with special reference to Coimbatore city)', Paripex � Indian Journal of Research, Volume 3, Issue. 11, pp.45-46, ISSN -

2250-1991.

lMubin Kiyici, (2012), 'Internet shopping behavior of college education students of turkey's university', The Turkish Online

Journal of Educational Technology, July 2012, Volume 11, Issue.3, pp. 202-214.

lNa Li and Ping Zhang, Syracuse University,(2002): Consumer Online Shopping Attitudes and Behavior: An Assessment of

Research�.

A.Anandhi Prabha and Dr.M.V.Sathya Bama �Impact of Advertisement on Buying Behaviour� in ACME International journal of

37

The educated Indian women have to go a long way to achieve equal rights and position because traditions

are deep rooted in Indian society where the sociological set up has been a male dominated one. In today's

world, women entrepreneurs are playing vital role and they have become the important part of global

business environment, which is important for the sustained economic development and social progress.

The purpose of this paper is to find out the status of women entrepreneurs in India. Women of 21st century

is no more a traditional resource confined to homes only rather than they are educated, knowledgeable

and innovative part of the overall population possessing the capacity to transform economies into thriving

enterprises. On the basis of this analysis some recommendations are given to promote spirit the of women

entrepreneurship. Developing and developed nations have realized that developing women

entrepreneurship is indispensible to flourish as economically dominant nation in the modern high-tech

world. Therefore, creation of platforms and networks for women entrepreneurial culture are prominent

issues globally. Women as leaders are assertive, persuasive and willing to take risks. They managed to

survive and succeed in this cut throat competition with their hard work, diligence and perseverance.

Keywords: Women, Entrepreneurship, Challenges, Government measures, Women entrepreneurship

stories.

Introduction

Entrepreneurship refers to the act of setting up a new business or reviving an existing business so as

to take advantages from new opportunities. An entrepreneur is a person who starts an enterprise.

Entrepreneurship has been a male-dominated phenomenon from the very early age, but time has

changed the situation and brought women as today's most memorable and inspirational entrepreneurs.

It is estimated that women entrepreneurs presently comprise about 10% of the total number of

entrepreneurs in India, with the percentage growing every year. If the prevailing trends continue, it is

likely that in another five years, women will comprise 20% of the entrepreneurial force (Saidapur et.al,

2012). The Tenth Five-Year Plan (2002-07) aims at empowering women through translating the recently

adopted National Policy for Empowerment of Women (2001) into action and ensuring Survival,

Protection and Development of women and children through rights based approach. Government of

India has described women entrepreneurs as an enterprise/venture owned and controlled by women

having at least financial interest of 51% of the capital and giving at least 51% of employment generated in

the organization to women. The knowledge, Skill and compliance in business are the core reasons for

women to come forward into business ventures. Women entrepreneurs engage in business due to push

and pull factors which give confidence to women to have a self-sufficient occupation and stands on their

foot. Logic towards independent decision- making on their life and career is the motivational factor

behind this, which insists on 'Women Entrepreneur' that is a person who accepts challenging role to

meet her personal desires and turn out to be economically independent. A strong desire to do enormous

positive is an integral quality of entrepreneurial women, who is competent of contributing values in both

Women Entrepreneurship in India: Challenges and Pospects *Shantanu Saurabh

**Veenita Singh

*Assistant Professor, Institute of Management Studies, BHU (RGSC)**Research Scholar, Department of Commerce and Business Administration, Allahabad University

38


family and social life. With the introduction of media, women are conscious of their own qualities, rights

and also the work situations. The glass ceilings are shattered and women are found indulged in every

line of business from aachaar to telecommunication.

Objectives and Research Methodology of the Study

The study is based on secondary data which is collected from the published reports of RBI,

NABARD, Census Surveys, SSI Reports, newspapers, journals, websites, etc. The study was planned

with the following objectives:

1. To evaluate the factors responsible for encouraging women to become entrepreneurs.

2. To critically examine the problems faced by women entrepreneurs

3. To study the impact of assistance by the government on women's entrepreneurship.

Literature Review

Tambunan, (2011), made a study on recent developments of women entrepreneurs in Asian

developing countries. The study focused mainly on women entrepreneurs in small and medium

enterprises based on data analysis and review of recent key literature. This study found that in Asian

developing countries SMEs are gaining overwhelming importance; more than 95% of all firms in all

sectors on average per country. The study also depicted the fact that representation of women

entrepreneurs in this region is relatively low due to the factors like low level of education, lack of capital

and cultural or religious constraints. However, the study revealed that most of the women entrepreneurs

in SMEs are from the category of forced entrepreneurs seeking for better family incomes.

Das, 2000 performed a study on women entrepreneurs of SMEs in two states of India, viz, Tamil

Nadu and Kerala. The initial problems faced by women entrepreneurs are quite similar to those faced by

women in western countries. However, Indian women entrepreneurs faced lower level of work-family

conflict and are also found to differ from their counterparts in western countries on the basis of reasons

for starting and succeeding in business. Similar trends are also found in other Asian countries such as

Indonesia and Singapore. Again the statistics showed that the proportion of business setup and

operated by women is much lower than the figures found in western countries.

Singh, 2008, identifies the reasons and influencing factors behind entry of women in

entrepreneurship. He explained the characteristics of their businesses in Indian context and also

obstacles and challenges. He mentioned that the obstacles in the growth of women entrepreneurship

are mainly lack of interaction with successful entrepreneurs, social un- acceptance as women

entrepreneurs, family responsibility, gender discrimination, missing network, low priority given by

bankers to provide loan to women entrepreneurs. He suggested the remedial measures like promoting

micro enterprises, unlocking institutional frame work, projecting and pulling to grow and support the

winners etc. The study advocates for ensuring synergy among women related ministry, economic

ministry and social and welfare development ministry of the Government of India.

Lall and Sahai, (2008), conduct a comparative assessment of multi-dimensional issues and

challenges of women entrepreneurship, and family business. The study identified Psychographic

39


variables like, degree of commitment, entrepreneurial challenges and future plan for expansion, based

on demographic variables. Through stratified random sampling and convenience sampling the data

have been collected from women entrepreneurs working in urban area of Lucknow. The study identified

business owner's characteristics as self perception, self esteem, entrepreneurial intensity and

operational problem for future plans for growth and expansion. The study suggested that though, there

has been considerable growth in number of women opting to work in family owned business but they still

have lower status and face more operational challenges in running business.

Greene et.al. (2003), evaluated the research and publication contribution in the area of women

entrepreneurship. The study categorized various journal and resources of research on the basis of

certain parameters concerned with women entrepreneurship like gender discrimination, personal

attributes, financing challenges, business unit, context and feminist perspectives.

Status of Women Entrepreneurs in India

Entrepreneurship is considered as one of the most important factors contributing to the

development of society. India has been ranked among the worst performing countries in the area of

women entrepreneurship in gender-focused global entrepreneurship survey, released in July 2013 by

PC maker Dell and Washington based consulting firm Global Entrepreneurship and Development

Institute (GEDI). Of the 17 countries surveyed India ranks 16th, just above Uganda. Countries like Turkey,

Morocco and Egypt have outperformed India. Status of higher education in women in India came out

to be lower than most countries in the world. At present, women's entrepreneurial role is limited in the

large scale industries and technology based businesses. But even in small scale industries, the

women's participation is very low. As per the third all-India census of Small Scale Industries, only 10.11%

of the micro and small enterprises were owned by women, and only 9.46% of them were managed by

women. While the number of women operating their own business is increasing globally, women

continue to face huge obstacles that stunt the growth of their businesses, such as lack of capital, strict

social constraints, and limited time and skill.

Reasons for Women Becoming Entrepreneurs

Self esteem, recognition, self determination, and career goal are the key drivers for choosing

entrepreneurship by women .Women Entrepreneur is a person who accepts challenging role to meet

her personal needs and become economically independent. A strong desire to do something positive is

an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and

social life. With the advent of media, women are aware of their own traits, rights and also the work

situations. The challenges and opportunities provided to the women of digital era are growing rapidly

that the job seekers are turning into job creators. Many women start a business due to some traumatic

event, such as divorce, discrimination due to pregnancy or the corporate glass ceiling, the health of a

family member, or economic reasons such as a layoff. But a new talent pool of women entrepreneurs is

forming today, as more women opt to leave corporate world to chart their own destinies. They are

growing as designers, interior decorators, exporters, publishers, garment manufacturers and still

exploring new avenues of economic participation

40


Motivational Factors for Woman Entrepreneurs

Motivational factors influencing woman to join the leading group of entrepreneurs are of two types.

One is entrepreneurship by choice, and the other is entrepreneurship by necessity. Schumpeter, (2000).

Women become entrepreneurs by choice due to the following factors:

lTo materialize their idea into capital.

lFor empowerment and freedom.

lTo prove their worth among their male family members

lTo establish their own rules for their work

lTo overcome the deficiencies they faced during their job experience

lA long term standing desire to have their own company

lWorking for someone else did not appeal to them

By necessity they are motivated to be entrepreneurs due to the following factors:

lTo improve quality of life for their children.

lTo share the family economic burden.

lTo adjust and manage household and business life successfully on their own terms.

lDue to the death or sickness of their husband.

Social Factors for Women Entrepreneurs

lSocio-economic factors

lself-confidence

lContribution to society

lCreativity and innovation

lMaterialize their ideas

lEconomic independence

lSelf- identity

lAchievement of excellence

lRisk taking ability

lMotivation

lEqual status in society

lFreedom and mobility

lSelf �Actualisation

Obstacles/Problems in the Path of Women Entrepreneurs in India

Highly educated, talented and professionally qualified women should be encouraged for running

their own business, rather than reliant on wage service jobs. The uncharted talents of young women can

41


be acknowledged, skilful and used for various types of industries to increase the yield in the business

sector. A desirable atmosphere is necessary for every woman to inculcate entrepreneurial values and

involve greatly in business dealings.

But Women in India are faced many problems to get ahead their life in business. A few problems can

be detailed as;

l In India women have lack of self-confidence in their strength and

ability. The family members and the society are unwilling to stand behind their organizational growth.

To a certain degree, this situation is changing with Indian women and yet to face an incredible

amend to boost the rate of growth in entrepreneurship.

lSocio-Cultural Barriers � Family and personal obligations sometimes works as a great barrier for

succeeding in business career of women entrepreneurship. Only few women are capable of

managing both home and business efficiently, giving sufficient time to perform all their

responsibilities in priority.

lRisks Related to Market � Tuff competition in the market and lack of mobility of women make

them dependent on middleman essential. Many business women find it very difficult to capture the

market share and make their products well popular and accepted by customer. They are not fully

conscious of the changing market environmental conditions and solely dependent on the services

of media and internet.

lMobility Constraints - Women in India have to face lot of restriction on their mobility, our society

still have some conservativeness, and due to that career of women is limited to four walls of kitchen.

lBusiness Administration Knowledge � Women must be educated and trained continuously to

acquire the skills and understanding in all the required functional areas of business venture. This will

make women to excel in decision making and develop good business skills.

lFinancial Assistance � Most of the women especially in rural areas are not aware about the

financial assistance provided by various institutions. The efforts taken for women entrepreneurs

may not able to reach the entrepreneurs in rural and backward areas.

lTraining Programs - Depending upon the needs, duration, skill and the purpose of entrepreneur

there are various workshops and training programs available to train them. Such kinds of programs

are really helpful to new and young entrepreneurs who desire to start a small and medium sized

business on their own.

lCost - Some businesses have high production and operation cost that adversely affects the

expansion of women entrepreneurs. The installations of new machineries during expansion of the

productive capacity and like similar factors discourage the women entrepreneurs from entering into

new areas.

lLegal Constraints in Family Law - The institutional and legal environment is critical to the growth

of female-owned enterprises. Laws regulating the private sphere specifically those regarding

marriage, inheritance and land can hinder women's access to assets that can be used as collateral

when securing a loan.

Short of Self-Confidence �

42


Measures Taken by the Government

Development of women has been a policy objective of the government since independence. Until

the 70s the concept of women's development was mainly welfare oriented. In 1970s, there was a shift

from welfare approach to development approach that recognised the mutually reinforcing nature of the

process of development. The 80s adopted a multi-disciplinary approach with an emphasis on three core

areas of health, education and employment. Women were given priorities in all the sectors including SSI

sector. Government and non government bodies have paid increasing attention to women's economic

contribution through self employment and industrial ventures.

lThe First Five-Year Plan (1951-56) envisaged a number of welfare measures for women.

Establishment of the Central Social Welfare Board, organization of Mahila Mandals and the

Community Development Programmes were a few steps in this direction.

lIn the second Five-Year Plan (1956-61), the empowerment of women was closely linked with

the overall approach of intensive agricultural development programmes.

lThe Third and Fourth Five-Year Plans (1961-66 and 1969-74) supported female education as a

major welfare measure.

lThe Fifth Five-Year Plan (1974-79) emphasized training of women, who were in need of income

and protection. This plan coincided with International Women's Decade and the submission of

Report of the Committee on the Status of Women in India. In1976, Women's welfare and

Development Bureau was set up under the Ministry of Social Welfare.

lThe Sixth Five-Year Plan (1980-85) saw a definite shift from welfare to development. It

recognized women's lack of access to resources as a critical factor impending their growth.

lThe Seventh Five-Year Plan (1985-90) emphasized the need for gender equality and

empowerment. For the first time, emphasis was placed upon qualitative aspects such as

inculcation of confidence, generation of awareness with regards to rights and training in skills

for better employment.

lThe Eight Five-Year Plan (1992-97) focused on empowering women, especially at the Gross

Roots Level, through Panchayati Raj Institutions.

lThe Ninth Five-Year Plan (1997-2002) adopted a strategy of Women's Component Plan, under

which not less than 30 percent of funds/ benefits were earmarked for women related sectors.

lThe Tenth Five-Year Plan (2002-07) aims at empowering women through translating the

recently adopted National Policy for Empowerment of Women (2001) into action and ensuring

Survival, Protection and Development of women and children through rights based approach.

At present, the Government of India has over 27 schemes for women operated by different

departments and ministries. Some of these are:

lIntegrated Rural Development Programme (IRDP)

lKhadi and Village Industries Commission (KVIC)

43


l

lPrime Minister's Rojgar Yojana (PMRY)

lEntrepreneurial Development programmes (EDPs)

lManagement Development programmes

lWomen's Development Corporations (WDCs)

lMarketing of Non-Farm Products of Rural Women (MAHIMA)

lAssistance to Rural Women in Non-Farm Development (ARWIND) schemes

lTrade Related Entrepreneurship Assistance and Development (TREAD)

lWorking Women's Forum

lIndira Mahila Yojana

lIndira Mahila Kendra

lMahila Samiti Yojana

lMahila Vikas Nidhi

lMicro Credit Scheme

lRashtriya Mahila Kosh

lSIDBI's Mahila Udyam Nidhi

lMahila Vikas Nidhi

lSBI's Stree Shakti Scheme

lNGO's Credit Schemes

lMicro and Small Enterprises Cluster Development Programmes (MSE-CDP).

lNational Banks for Agriculture and Rural Development's Schemes

lRajiv Gandhi Mahila Vikas Pariyojana (RGMVP)

lPriyadarshini Project- A programme for Rural Women Empowerment and Livelihood in Mid

Gangetic Plains

lNABARD- KfW-SEWA Bank project

lExhibitions for women, under promotional package for Micro and Small enterprises approved

by CCEA under marketing support

The efforts of government and its different agencies are ably supplemented by NGOs that are

playing an equally important role in facilitating women empowerment. Despite concerted efforts of

governments and NGOs there are certain gaps. Of course we have come a long way in empowering

women yet the future journey is difficult and demanding.

Stories of Few Women Entrepreneurship

1.The rural women of Sathyamangalam

The women of this land in Tamil Nadu have been victims of neglect for ages. Now, in the age of mass

Training of Rural Youth for Self-Employment (TRYSEM)

44


media and connected technology, they have found a new weapon to fight the oppression-the video

camera. Female volunteers who took part in a film-making workshop conducted by 'signs' and 'Aide et

Action International' are using the visual platform to tell their stories �real tales of oppression that are

plainly told and are hard to neglect. This is a movement the rural women of sathyamangalam participate

in with their heart.

2.Agricultural Labourer to CEO of USA companies (Mrs.Jyothi Reddy)

The success story of Mrs. D Jyothi Reddy from Warangal in Hyderabad has a narrative arc that

pushes the limit of unbelievable rural agricultural labourer whose pay was Rs 5 per day till 1989 .She is

now the CEO of keys software solutions in USA creating revenues in the millions .Not forgetting where

she came from, she is actively involved in philanthropic endeavors, serving rural India

3.Women of Barsana

Barsana is near Mathura, one of the sacred places in Hinduism. But the women of Barsana faced a

problem that is less than sacred-alcohol. Men who indulged themselves in drinking spirits spoiled the

fun of Holi, one of the most popular Hindu festivals. So, what did the women do? They devised their own

version of celebrating the festival called 'Lathmar Holi.' The highlight is that men get thrashed by women

with lathis and these men have to dance in public, dressed as a woman.

4.Padma Shri awardee, Kalpana Saroj

A Dalit by birth, she attempted suicide at a tender age. She was married by her parents when she

was just 12.Physically abused by her husband's family; she was rescued from the slums where she

stayed with her husband by her father. Starting out working in a garment factory, she later started a

tailoring business and then a furniture store, eventually joining the league of successful Indian women

entrepreneurs. The nation honored this amazing woman who was born in Roperkheda village of

Maharashtra with the Padma Shri

5.The women behind Lijjat Papad

Lijjat is a highly popular pappad brand in India. While many may remember the buck toothed bunny

that appeared in their TV commercials, many may not be aware of the fact that it's the power of rural

women and their self-employment initiative, 'Shri Mahila Griha Udyog' which made the brand possible.

Started with a loan of just Rs. 80, today the co-operative has annual sales of more than Rs.3.1 billion.

Recommendations

The elimination of obstacles for women entrepreneurship requires a major change in traditional

attitudes and mindsets of people in society rather than being limited to only creation of opportunities for

women. Hence, it is imperative to design programmes that will address to attitudinal changes, training,

supportive services. The basic requirement in development of women entrepreneurship is to make

aware the women regarding her existence, her unique identity and her contribution towards the

economic growth and development of country. The basic instinct of entrepreneurship should be tried to

be reaped into the minds of the women from their childhood. This could be achieved by carefully

designing the curriculum that will impart the basic knowledge along with its practical implication

.

45


regarding management (financial, legal etc.) of an enterprise. Here are some suggestions to increase

the role of women entrepreneurs:-

l Infrastructure set up plays a vital role for any enterprise. Government can set

some priorities for women entrepreneurs for allocation of industrial plots, sheds and other

amenities. However, precautionary measures should be undertaken to avoid the misuse of

such facility by the men in the name of the women.

l Personality Development - Attempts should be there to enhance the standards of education

of women in general as well making effective provisions for their training, practical experience

and personality development programmes, to improvise their over-all personality standards.

lSelf help groups of women entrepreneurs - Self help groups of women entrepreneurs can

mobilize resources and pool capital funds to help the women in the field of industry, trade and

commerce.

lBusiness Development Training Programs - It includes basic day-to-day management

training like how to keep track of accounts, handle taxes and understand compliance rules and

regulations. They can also focus on strategy and the long-range success of a business from

writing a business plan to targeting specific markets, along with product innovation within

business clusters and incubators.

lAccess to Finance Programs - Efforts to facilitate access to finance for women

entrepreneurs typically encompasses initiatives that reform restrictive bank and regulatory

policies. Such reforms accept less traditional forms of collateral, look at a lender's willingness to

repay and simplify business registry. They also help financial institutions develop innovative

loan and savings products for female entrepreneurs.

lTo establish all India forums to discuss the problems, grievances, issues, and filing complaints

against constraints or shortcomings towards the economic progress path of women

entrepreneurs and giving suitable decisions .

Conclusion

Entrepreneurship is presently the most discussed and encouraged concept all over the world to

overcome economic challenges. Women being the vital gender of the overall population have great

capacity and potential to be the contributor in the overall economic development of any nation.

Therefore, programs and policies need to be customized to not just encourage entrepreneurship as well

as implement strategies which can help support entrepreneurial culture among youth.

Media has the potential to play the most vital role in entrepreneurial development by creating and

highlighting all such platforms which can bring out the creativity and innovation among the women and

men to grow entrepreneurship culture in society.

Developing countries are definitely in dire need to encourage women entrepreneurship as women

workforce is promptly available to exploit the unexplored dimensions of business ventures. Developed

nations should primarily focus on entrepreneurial educational programs in order to develop women

Infrastructure �

46


entrepreneurs.

Generally speaking, globally business world has realized and is working on war footing to create

entrepreneurship as the final remedy to overcome all types of business and market challenges.

References

l

and communication, vol2http://www.chimc.in/Volume2.1/Volume2Issue1/GurendraNathBhardwaj.pdf

l Global Entrepreneurship Monitor (2012), GEM 2011 Global Report. Published online, http://www.gemconsortium.org

l Baporikar, N. (2007), Entrepreneurship Development and Project Management- Himalaya Publication House.

l Damwad, :( 2007), Women Entrepreneurship � A Nordic Perspective, August 2007, Nordic Innovation Centre

l Dhameja S K (2002), Women Entrepreneurs: Opportunities, Performance and Problems, Deep Publisher (P) Ltd., New

Delhi.

l Dr.Nasreen Aslam Shah (2002), �Changing Role of Women in Pakistan: A Study of Social and Economic Activities of

Women Entrepreneurs�. University of Karachi

Bhardwaj G.N. Et al, (2012), �Women Entrepreneurship in India: Opportunities and Challenges� CH Institute of management

47

Enhancing Life Insurance Penetration and Density in India:Purchase Intention Modelling

*Assistant Professor, Amity Business School, Lucknow**Assistant Professor, Maharshi University of Information Technology, Lucknow***Assistant Professor, Jagran College of Arts,Science and Commerce, Kanpur

*Upendra Nath Shukla**Sapan Asthana

***Dr. Rajeev Nayan Singh

Life insurance industry witnessed a boom when the industry was unlocked for private players with

foreign partnership since 2001, but in the emerging economy like India level of insurance penetration and

density is continuously dropping since the year 2010(IRDA annual report 2014-15) due to lethargic

demand of life insurance due to disconnect of customers from the industry. To increase the penetration

and density of life insurance, it's utmost important to understand the purchase intention of customers

based on certain purchase motives. This study has basic objective to build a model of purchase intention

based on most popular buying motives. Survey of 550 individuals is conducted in the city of Lucknow and

rural surroundings to understand the buying intention and motive of life insurance. Applying logit

regression it's estimated that financial planning and tax saving motives contributes significantly for

predicting a probability of purchase of life insurance, whereas higher values of investment motive leads to

lower purchase intention . Protection motive proved to be insignificant while developing the model.

Purchase of life insurance as a part of financial planning and tax saving motive, makes the environment

more conducive for the growth of industry but it's also established that life insurance is still not purchased

to fulfill the basic need of protection against future financial uncertainty, which is the major area of concern

to create an insurance culture in Indian economy for increased penetration and sustainability.

Keywords: Life insurance, demand, insurance penetration, insurance density, purchase

intention, sustainability.

Introduction

Post liberalization life insurance penetration and density picked up well initially in India due to

launch of ULIP policies in Indian markets offering variety of benefits together along with basic benefit of

protection. Insurance penetration and density are used to measure the level of development of

insurance in an economy. Insurance penetration is defined as ratio of total premium underwritten with

Gross domestic product (GDP) whereas insurance density is defined as ratio of total premium

underwritten with total population. In spite of average economic growth of above 5% in recent past in

Indian economy, life insurance penetration and density started dipping since 2007-08, following table

explains the situation well.

Financial 20012002200320042005200620072008200920102011201220132014Year -02-03-04-05-06-07-08-09-10-11-12-13-14-15

InsurancePenetration2.152.592.262.532.534.104.004.004.604.403.403.173.102.60in Percentage

InsuranceDensity ($) 9.111.712.915.718.333.240.441.247.755.749.0042.74144

Table:1 Insurance penetration and density

(Source: IRDA annual report 2014-15)

48


Decrease in global demand due to global recession during and after 2007, insurance penetration

declined but it could not pick up later on even India recorded average GDP growth of above 5% in that

period.

Objective and Scope

Study has the primary objective to understand the causes of declining life insurance penetration and

density by understanding different buying motive of life insurance and subsequently to develop a model

for purchase intention.

Limited data resources and geographical limits had been the limitations of the study. Study may be

further extended to understand different buying motives leading to higher level of life insurance

penetration and density.

Literature Review

Dragos S L (2014) explores urbanisation, incomes and their distributions, and the population degree

of education are the relevant factors for the development of insurance sector. This study estimates the

different effects of the previously mentioned factors for life and non-life sector. The study used the

econometrics of panel data on 17 emerging economies from Asia and Europe over a 10-year period. It

showed that urbanisation influenced significantly the life insurance demand in Asia, but not in Europe.

Also, education was found to be significant only for the non-life sector in both regions and income was

non-significant in Asia for non-life sector.

Edward W. (Jed) Frees 2010: findings suggest that household demand for term and whole life

insurance is jointly determined. There exists a negative relationship for a household's decision to own

both whole and term life insurance (the frequency part) and a positive relationship for the amount of

insurance purchased (the severity part). This indicates that the greater the probability of holding one

type, the smaller the probability of holding the other type of life insurance. Study reveals that term and

whole life insurance are substitutes in the frequency yet complements in the severity which plays major

role in increasing insurance penetration and density.

49


Liebenberg, Andre P.; Carson, James M.; Dumm, Randy (Sep 2012)-Results indicate both a

statistically and economically significant relation between life events, such as new parenthood, and the

demand for life insurance.

M Yuan, Cheng; Jiang, Yu (2015)- Empirical results indicate that level of income, development of

insurance market and level of marketization are the common factors; level of education, development of

social security pension, children dependency ratio and elderly dependency ratio mainly affect the

demand for life insurance.

T. Hymavathi Kumari (2013) study reveals that- it is necessary to ensure efficient and effective

service to the policy holder. The overall business of life insurance has been significantly increased after

privatization but still a huge Indian population lives are being uninsured. As such there is a need to

examine to what extent the industry is serving the needs of the customers before and after the sale of

policies and to what extent innovative products are introduced to improve the performance of life

insurance industry in India.

R. Kanan June (2008) emphasizes formation of more strategic alliances, emergence of changing

business models and new service providers, development of new and innovative products and

alternative distribution channels would be the basic prerequisite to compete in Indian life insurance

industry.

Shukla, U.N. (2015) explores that for life insurance Corporation of India also a complete overhauling

of the system was required to meet the hard-hitting challenges. Rudimentary re-engineering of the entire

system was the only remedy to crack the issue to increase insurance penetration and to remain as a

market leader


Research Design: exploratory, analytical and descriptive

Data Source: Primary data is collected from individuals having bank account of different income

groups through questionnaires and secondary data is collected from the IRDA annual reports (2001-

2015),

Sample Unit: individuals having bank account of different income groups

Sample Size: About 550 questionnaires were collected out of which 502 were found to be useful

for the analysis.

Instrument : Based on the literature review and industry experts respondents were asked to rate

their purchase intention on the five point scale for the purchase motive of tax saving, protection,

necessity and investments.

Reliability : Cronbach's alpha is estimated to be 0.825 which indicate the reliability that all the

selected items for the study explain the construct- Purchase intention well.

Tools : Using SPSS � data was cross tabulated and logit regression modelling is done to analyse

the data and building the model. Forward Stepwise logit regression is used to estimate Likelihood Ratio.

Variables under study : based on the literature review and opinion of industry experts motives

affecting the probability of purchase of life insurance are age, education, occupation, income, residential

status and two buying motives tax savings and necessity.

50


Analysis

Probability of purchase intention is P, therefore odds in favor of will be-(P / 1-P). As the probability 1 1 1

P is one customer will definitely buy life insurance and when the value of p is zero, customer will not at all 1 1

buy life insurance

Proposed Model- Taking log of (P / 1-P)1 1

Log (P / 1-P) = ∑B* X + Constant; B= coefficients,1 1 i i i

X= Tax saving , Financial Planning , Investment andi

Protection motive, ( X takes value from 1 to 5 where 1i

being the least and 5 being the most intended to buy thelife insurance due to respective purchase motives)

(P1 / 1-P1)= e∑Bi* Xi + Constant As value of P / 1-P tends to zero, customer will not buy1 1

and when the value tends to one, customer will buy life insurance.

(In order to maximize the above function, value of log likely hood should be maximized, as it

tends to zero.)

Table 2: Codes (X)i

Item/parameter Code (X)i

Tax saving motive 1= least intended to buy life insurance due to tax saving motive and 5= Most intended to buy life insurance

Financial Planning motive1= least intended to buy life insurance due to Financial Planning motive and 5= Most intended to buy life insurance

Investment motive 1= least intended to buy life insurance due to Investment motive and 5= Most intended to buy life insurance

Protection motive 1= least intended to buy life insurance due to Protection motive 5= Most intended to buy life insurance

Chi-square df Sig.

Step 36.754 1 .000

Step 1 Block 36.754 1 .000

Model 36.754 1 .000

Step 7.308 1 .007

Step 2 Block 44.062 2 .000

Model 44.062 2 .000

Step 14.250 1 .000

Step 3 Block 58.312 3 .000

Model 58.312 3 .000

Table:3 Omnibus Tests of Model Coefficients

51


It's clear from Table 3 that model remains significant in step 3, which supports to continue the study.

Table 4: Model Summary

Step -2 Log Cox and Snell Nagelkerke R Square R Square

a1 599.023 .071 .098a2 591.714 .084 .117a3 577.465 .110 .153

likelihood

Model Summary in table 4 exhibits that in step three models explains maximum variance of 15.3%

based on Nagelkerke R square. Step three of logit regression exhibits that variable under step three are

most appropriate to be considered. If the classification table and model remains significant then these

values of Nagelkerke R Square are acceptable in the study of finance and social sciences.

Table 5: Hosmer and Lemeshow Test

Step Chi-square df Sig.

1 1.725 3.631

2 7.294 6.294

3 16.265 8.039

In table 5 test becomes significant in step 3, implies that step three is most suitable stage of

regression to be considered.

Step 1Purchase Intention of No 53 112 32.1

Life Insurance Yes 39 298 88.4

Overall Percentage 69.9







Observed Predicted

PercentageCorrect

Purchase Intention of LifeInsurance

No Yes

Table 6: Classification Table for Hosmer and Lemeshow Test

52


As per table 6, 70.3% cases are correctly classified form the proposed model in step three, which makes the model more reliable.

BS.E. Walddf Sig. Exp(B)aStep 1Tax_saving_motive .501.08534.577 1.0001.650

Constant -1.073.31311.749 1.001.342

Financial_planing_motive .272.1007.341 1.0071.313bStep 2Tax_saving_motive .349.10211.696 1.0011.417

Constant -1.518.36017.823 1.000.219

Investment_motive -.423.11812.867 1.000.655

Financial_planning_motive.515.12517.026 1.0001.674cStep 3Tax_saving_motive .383.10413.445 1.0001.467

Constant -.908.3995.182 1.023.403

a.. Variable(s) entered on step 1: Tax_saving_motive.

b. Variable(s) entered on step 2: Financial_planing_motive.

c. Variable(s) entered on step 3: Investment_motive.

Here financial planning has got the highest weightage, then tax saving motive comes whereas

investment motive is found to be inversely related with purchase intention of life insurance because it

has negative B values and fractional exponential values. Therefore greater scores of investment motive

may lead to invest anywhere else where returns are higher and not in life insurance.

Table: 8 Model if Term Removed

Variable Model LogChange in -2dfSig. of theLikelihood Log Change

Likelihood

Step 1Tax_saving_motive -317.888 36.754 1 .000

Financial_planning_motive -299.511 7.308 1 .007

Step 2Tax_saving_motive -301.726 11.738 1 .001

Investment_motive -295.857 14.250 1 .000

Step 3Financial_planning_motive -297.736 18.008 1 .000

Tax_saving_motive -295.513 13.560 1 .000

Log likelihood values are approaching towards zero till step three, it implies that probability of odds in

favor of is getting maximized , by considering the above variables in the model.

Table 7 : Variables in the Equation

53


Table 9 : Variables not in the Equation

Score df Sig.

Investment_motive 3.476 1 .062

Variables Financial_planing_motive 7.483 1 .006

Step 1 Protection_motive .000 1 .991

Overall Statistics 20.887 3.000

Variables Investment_motive 13.356 1 .000

Step 2 Protection_motive .484 1 .487

Overall Statistics 13.398 2.001

Step 3Variables Protection_motive .042 1 .838

Overall Statistics .042 1 .838

Protection motive has not been found as to be very significant motive to take the purchase decision

of life insurance as it remains insignificant even in step three of regression.

Findings

Therefore from the above analysis it concluded that model remains significant at step three,

although it explains 15.3% variance but 70.3% cases are correctly classified. Financial planning is found

as most significant variable affecting the probability of purchase of life insurance, then comes tax saving

motive. Higher scores of investment motive may is found to be negatively associated with purchase

intention of life insurance and may result into investing elsewhere apart from life insurance

Protection motive is found to be not significantly befitted in the model to predict purchase intention

of life insurance, which is a matter of concern because protection is the basic purpose of life insurance.

Model of Purchase Intention of Life Insurance

Financial planning

motive to buy

life insurance

Probability of

purchase of

Life insurance

Tax saving

motive to buy

Life insurance

Investment

motive to buy

Life insurance

54


Recommendations

lFinancial planning is found most significant variable therefore insurers should focus more towards

financial planning aspect of individuals while pitching a life insurance product to the customer.

lIndividuals having higher scores of tax saving motive, are also likely to buy life insurance therefore

this aspect must also be given priority while promoting life insurance,

lInvestment motive with fractional exponential values and negative B values is found to be negatively

associated with purchase decision of life insurance policy, higher scores of investment motive

would not result into purchase of life insurance policy, theefore insurers should put special efforts

towards attracting the customers who take the life insurance policy as an investment to increase life

insurance penetration.

lProtection motive is found as not significant in the model, which is area of concern that insurers and

regulator must broadcast life insurance as a protection tool which is the base of life insurance

industry.

lBased on above we can suggest following model where probability of purchase of life insurance

depends on three factors as Financial planning motive, Tax planning. Motive and investment motive.

Conclusion

Life insurance industry is passing through a transition period since 2010 after theaunch of new Ulip

guidelines by the regulator. In order to have increased life insurance

Penetration and density purchase intention of customers has be understood well in order to have

sustainability in long run. On the other hand in order to develop an insurance culture in the economy

individuals should be made aware that life insurance is neessity and protection tool therefore must be

taken primarily with protection motive. Creating insurance culture in Indian economy for sustainability in

long run leading to higher level of life insurance penetration and density is the need of an hour.

References:

l

lIRDA handbook: 2014

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Europe and Asia, Journal of economic research, Volume 27, 2014 - Issue 1, pp169-80

lEdward W. (Jed) Frees PhD, FSA and Yunjie ( 2010) 'ousehold Life Insurance Demand - A Multivariate Two-Part Mode'North

American Actuarial Journal Volume 14, Issue 3, 010, Taylor and Francis

lLiebenberg, Andre P.Carson, James M.Dumm, Randy (Sep2012) ' Dynamic Analysis of the Demand For Life Insurance'E.

Journal of Risk and Insurance. Sep2012, Vol. 79 Issue 3, p619-644. 26p. 6 Charts. DOI: 10.1111/j.1539-

6975.2011.01454.x. Ebsco Host

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Economics. Vol. 47 Issue 45, p4855-4867. 13p. 5 DOI: 10.1080/00036846.2015.1037437 Ebsco host

lT. Hymavathi Kumari (2013) 'erformance Evaluation of Indian Life Insurance Industry in Post Liberalization'International

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lShukla, U.N. (2015) 'undamental reengineering for endurance in competitive market �a case study of Life Insurance

Corporation of India' Int. J. Teaching and Case Studies,Vol. 6, No. 4, pp.333�42

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55

A Conceptual Study of Factors Affecting Customer Satisfaction in Telecom Industry in India *Nishant Dabhade

**Dr. R. C. Gupta

*Research Scholar, Jiwaji University, Gwalior (M.P.)**Professor of Commerce, M.L.B. Govt. College of Excellence, Gwalior

The purpose of this study is to discover those factors which can affect and have an impact on the

satisfaction level of customers in the telecom industry in India. With the customer satisfaction, any

organization can maximize the number of loyal users. The main objective of this kind of study is to search

the factors influencing the satisfaction level of the customers in the mobile industry. This study has

identified six factors by which customer satisfaction can be maximized in telecom industry. The study is

conceptual in nature and secondary data is used to shape the paper. Profound study of literatures has

been done to reach at outcome of the study.

Introduction

At the present time, the service dynamic environment is considered as a main point in effective

marketing. It's essential to design service products based on customer's need and feasible prices. But

the rate of customer participation and also the time are important in service delivery. Service quality,

deregulation or free competition and new technology have increased competition and widened the

range of network services available throughout the world. This increase in telecommunication

capabilities allows business to benefit from the information revolution in numerous ways, such as

reforming their inventories, increasing productivity, and identifying new markets. The mobile services

have been recognized the world more than a significant tool for socio-economic progress. It is one

of the key support services needed for the rapid development and transformation of various sectors of

the economy. Economy becomes handicapped in the absence of a sound mobile network system.

The mobile sector had a slow and uneasy start in India.

As per the ITU (International Telecommunication Union) Quality of Service is a set of quality

requirements on the collective behaviour of one or more objects. It is basically the level of guaranteed

services provided to a user. Nowadays the level of guaranteed service is extremely imperative for an

organization to progress and survive in this competitive market. An organization needs both to meet

and exceed the expectations of the customer. The basic criterion on which a customer expects

from a company is their past experiences, others' past experiences (word of mouth) and the

marketing strategy of the company. The quality of services provided to the customers are directly

proportional to the customer satisfaction and word of mouth as each customer generally compares

the tangible services with their own expectations and if the tangible one falls below their

expectations, the customer generally becomes disappointed and that affects his loyalty and

satisfaction towards the service provider.

Customer Satisfaction

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from

the evaluation of services provided by an organization to an individual in relation to expectations.

Service providers frequently place a higher priority on customer satisfaction, because it has been seen

56


as a prerequisite to customer retention. As a positive outcome of marketing activities, high customer

satisfaction leads to repeat visitation to stores, repeat product purchases, and word-of-mouth

promotion to friends, while low customer satisfaction has been associated with complaining

behaviour. A satisfied customer often stays loyal longer, and is likely to patronize the firm in future.

Generally, there are two general conceptualizations of satisfaction, namely, transaction specific

satisfaction and cumulative satisfaction. Transaction-specific satisfaction is a customer's evaluation

of his or her experience and reactions to a particular service encounter while cumulative satisfaction

refers to the customer's overall evaluation of the consumption experience to date.

Overview of Indian Mobile Industry

Today the Indian Mobile service industry is the world's fastest growing mobile service industry.

It is also the second largest telecommunication network in the world in terms of number of wireless

connections after China. Cellular services can be divided into two categories: Global System for

Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is

dominated by Airtel, Vodafone, and Idea Cellular, while the CDMA sector is dominated by Reliance

and Tata Indicom. Deregulation and latest technology have created cut-throat competition and

widened the range of network services available throughout the world. To retain the customers,

companies have to enhance the quality of services provided to the customers so that the customer

adheres to the same company for much longer. The mobile sector now includes a good number of

national and multinational companies providing varied mobile communication services to the mobile

users within the country. Every day there is a significant rise in the number of mobile users from both

urban and rural areas. The companies providing mobile services have also become competitive

and are ready to capture the maximum market share. The business of all such companies namely

BSNL, MTNL, Bharti AIRTEL, Reliance India communication, Tata Telecom, Idea, etc is expanding

very fast throughout the country while on the other hand the branded handsets of Sony, Motorola,

Samsung, Reliance, Tata Telecom and many more have established their name in the market with a

wide variety of feature loaded handsets of all price ranges.

Importance of the Study

It is really worth mentioning that in the last five years, the number of mobile users has increased

tremendously. Now with such a fast expansion of the mobile user market it is very important for the

companies to be conscious about their role in providing quality services to their customers so as to

generate customer satisfaction. In the present scenario, the said aspect has become very important

and a complete and realistic assessment of needs to be done. Since satisfied customer is the core

concern of any organization therefore they pay close attention towards the factors that influence a

customer's decision towards brand. The main purpose of this research study is to investigate the key

variables that are having strong influence on customer satisfaction in telecom sector and influence

purchasing decision of customers. Factors affecting customer satisfaction are key concern for any

organization, department or country because any business can establish long term profitable

relationship with customer through customer satisfaction. The reason behind is once a firm loses its

57


loyal customers it has to incur a cost of acquiring them again in addition to acquiring the new ones.

Keeping up above said issue in the mind, the research study has been contemplated.


Victor Iglesias (2009), points out that in the concept of attribution, various dimensions that were

considered in a large number of works. These dimensions are locus of causality, controllability, and

stability. The purpose of research paper of is to analyze the effects of the identification of service

failures on consumer satisfaction. ANCOVA test is applied in this paper. The results show that the

attribution of the failure to the service firm causes a systematic reduction in all of the quality perceptions

(even in service aspects not linked to the failure). But attribution also shows direct effects on

satisfaction beyond the effect through perceptions. Attitude based processes as well as attribute-

based processes are affected by attribution.

Rajkumar Paulrajan and Harish Rajkumar (2011), studied that the success of telecommunication

industry depends on prudent efforts and feasible investments. The purpose of this research study is to

understand the Indian consumers' perception choice in selecting cellular mobile telecommunication

service providers. A structured questionnaire was developed to collect the required primary data

from the consumers. Collected data were analyzed by Cronbach's alpha analysis test. The outcome of

this research shows a comprehensively integrated framework to understand the relationships

among several dimensions. The finding suggests that communication and price were most influential

and most preferential factors in selecting telecommunication service provider.

According to N. Mekoth, G. P. Babu, V. Dalvi, N. Rajanala, and K. Nizomadinov (2011), the service

marketers are considering various constructs like service quality, consumer satisfaction and

behavioural intentions while planning and developing the marketing strategies. Objective of research

is to identify some of the critical service encounters that the outpatients undergo in a health care facility

and to investigate whether the service encounter related process quality as perceived by the patient's

leads to patient satisfaction, repeat visit, and recommendation intentions. Regression analysis is

applied in this paper. Exit interviews of the outpatients have been conducted to identify service

encounter related process quality variables which determine patient satisfaction and behavioural

intentions. The result reveals that both the physician quality and laboratory quality have been found

to be significantly related to patient satisfaction.

Anil Kumar and Manoj Kumar Dash (2013), conducted an exploratory research which aimed to

construct a measure for service quality in banks. The purpose of this research paper is to construct a

measure in service quality for Indian banks and establishes a causal relationship of service attributes

performance with customer satisfaction. The statistical techniques conducted for this paper were: (a)

Reliability Test (b) Exploratory Factor Analysis (c) Confirmatory Factor Analysis (d) Structural Equation

Modeling. The results indicate that service quality variables are important antecedents of customer

satisfaction and retention. These antecedents of service quality have a positive significant relationship

with customer satisfaction. The study concludes with an analysis of how different dimensions of

service quality performance attribute impact on customer satisfaction and retention.

58


The empirical research study of Ms. Jayshree Chavan, Mr. Faizan Ahmad (2013) focuses on

exploring the major factors that lead to customer satisfaction in retail banking in Western Maharashtra in

India. It also leads to developing a conceptual framework of relationship marketing practices in Indian

banks by capturing the perspectives of consumers with respect to their satisfaction with various

services. The findings revealed that customer satisfaction, a transaction-specific attribute, is dependent

on nine different factors. It is hoped that this research paper would help the bank management not only

in improving the overall level of customer satisfaction but also strengthening the bond between the

banks and their customers, thereby helping the banks to retain and/or expand their overall customer

base.

Research paper of Chatura Ranaweera and Andy Neely (2003) represents a holistic model of

customer retention incorporating service quality perceptions, price perceptions, customer indifference

and inertia. Data from a large-scale postal survey of telephone users in England showed that

perceptions of service quality have a direct linear relationship with customer retention even in mass

services with low customer contact. Price perceptions and customer indifference too were found to

have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and

customer indifference moderated the relationship between service quality perceptions and customer

retention. A linear relationship between inertia and customer retention was not found. Furthermore,

there was evidence to indicate that inertia was a relatively unstable condition and that reliance by

service providers on inertia to retain customers could indeed be a risky strategy.


1.To analyze the factors which may affect the quality of services provided to the customers.

2.To analyze the satisfaction level of customers on the basis of Quality of Service provided by the

telecom service providers.

Factors Responsible for Customer Satisfaction in Telecom Industry

lCommunication Services

Communication is one of the integral part of services that have always been a focus point for

exchanging information to the customers. Later the discovery, telephones replaced the telegrams and

letters. Similarly, the term mobile' has completely revolutionized the communication by opening up

innovative applications that are limited to one's imagination. Today, mobile communication has become

the strength of the society. All the mobile system technologies have enhanced the way of living.

lNetwork Coverage

Geographic coverage describes the locations covered by the telecommunication companies.

These may be specified as location names, various codes for localities, census map spots, and latitude

and longitudinal ranges.

lTechnological Services

The purpose of evaluating technological services is to analyze and evaluate the development of a

particular technological field in terms of the structures and processes that support or obstruct it.

59


Technological Innovation is defined in terms of knowledge/competence movement rather than flow of

ordinary goods and services.

l

Competitive pricing is setting the price of a service based on what the competition is charging.

Competitive pricing is used more often by businesses selling similar services, since services can vary

from business to business while the attributes of a service remains similar.

lBrand Image

Image of service provider plays a vital role in choosing the telecom network in telecommunication

sector. Brand image refers the impression of brand's total personality in the consumers' mind (real and

imaginary qualities and shortcomings). Brand image is developed over time through advertising

campaigns with a consistent theme, and is authenticated through the consumers' direct experience.

lCustomer Care Services

Customer care refers the work of looking after customers and ensuring their satisfaction with one's

business and its services. Modern consumers are aware of their right to a high standard of customer

care. Customer care is very important to us. It is the approach of an organization in winning and retaining

customers.

Competitive Prices

CompetitivePrices

Brand Image Customer CareServices

CommunicationServices

NetworkCoverage

TechnologicalServices

Determinants of CustomerSatisfaction

Fig : Factors Responsible for CustomerSatisfaction

Measurement of Customer Satisfaction

Since this study is based on secondary data hence literature review helps researcher to understand

following variables which are responsible for customer satisfaction in telecom industry:

lLow call drop facility plays an important role in customer satisfaction. If the customer is satisfied then

he/she automatically promotes the network and services of service provider among the people by

word of mouth.

lIn this highly competitive scenario in the telecom sector, service quality generates fair competition

60


among the small as well as giant player of the industry. Hence disturbance free network system

satisfies the need of the customers.

lOperators offer services with new technology for customer satisfaction but the consideration

should be given on sustainability of users not only offering a new technology.

lCustomers prefer the network which provides low international tariff plans.

lSince customer is the king of the market so he /she is satisfied with the services at affordable prices.

l24x7 Customer oriented call centers and innovative/competitive service offers for enhancing the

service quality and boosts the customer satisfaction.

lUp-to-the-minute technology to satisfy the needs of young generation in fast and under developed

cities boosts the customer satisfaction.

lA promotional offer with affordable tariff plans enhances the customer satisfaction.

lFor enjoying the interactive session with customers, Operators establish customer relationship

management (CRM) cell.

lEncourage upward communication from customer-contact employees.

lMake a blueprint of the service and standardize as many components of it as possible and institute a

formal, ongoing process for setting service specifications.

lEliminate �perception of infeasibility� on the part of senior managers and make a true commitment to

improve customer satisfaction.

lInvest in ongoing employee training and support employees with appropriate technology and

information systems.

lReduce role conflict and role ambiguity among customer-contact employees.

lHave consistent customer-related policies and procedures across branches or departments and

resist the temptation to promise more than the organization can deliver.

lWork systematically to remove organizational barriers that lead to poor customer service -- offline

and online.

lRecognize that e-service quality as perceived by customers involves much more than having a

state-of-the-art website and put in place a solid behind-the-scenes infrastructure information

systems, logistics, and human resources -- to deliver what a website's front promises.

lService provider pay heed on service quality and its five key dimensions: reliability, responsiveness,

empathy, assurance, and tangibles.

Conclusion and Discussion

This research study aims to figure out the factors responsible for customer satisfaction of mobile

users in telecom sector.In which we pull the attention on service quality with the special consideration

given on attractive/aggressive tariff plans, innovative services, quality of service, voice quality, low call

drops and state-of-the-art customer service setup, customer relationship management cell, brand

61


strength, network quality and better customer care services, grievance redressal cell and value added

services etc.Service quality will facilitate the satisfaction of unsatisfied users. This also means that

operators will have to put more efforts on to provide better services to retain the customer. Better

services mean the companies will have to set up more mobile phone towers, upgrade their equipment

and provide instant rectification of problems so that the subscribers are always able to get connected,

surf the internet and make full use of their mobile telephones. Operators must think on reducing the gap

between the customer expectation and customer perception. Because gap deduction will help to serve

better to the customers and contributes in brand image, profit maximization and footfall of customers

toward them.

References

lChavan Jayshree, Ahmad Faizan (2013): �Factors Affecting On Customer Satisfaction in Retail Banking: An Empirical Study�,

International Journal of Business and Management Invention, Vol.2, No.1, pp: 55-62.

lChhabra T N, Grover S K (Marketing management, Dhanpatrai and co. private. Ltd. 2009)

lChopra Anamica (Marketing management, Galgotia publishing company, 2010)

lGupta C B (Management concepts and practices, Sultan chand and sons, 2001)

lIglesias Victor (2009): �The attribution of service failures: effects on consumer satisfaction�, The Service Industries Journal,

Vol. 29, No. 2, pp: 127�141.

lKothari C R (Research methodology � methods and techniques, new age international publishers, 2006)

lKumar Anil and Dash Manoj Kumar (2013): �Constructing a Measurement in Service Quality for Indian Banks: Structural

Equation Modeling Approach�, Journal of Internet Banking and Commerce, Vol. 18, No. 1, pp: 1-13.

lMekoth N., Babu G. P., Dalvi V., Rajanala N., and Nizomadinov K. (2011): �Service Encounter Related Process Quality, Patient

Satisfaction, and Behavioural Intention�, Management,Vol. 6, No. 4, pp: 333�350.

lPaulrajanRajkumar and Rajkumar Harish (2011): �Service Quality and Customers Preference of Cellular Mobile Service

Providers�, Journal of Technology Management & Innovation, Vol. 6, No. 1, pp: 38-45.

lRanaweera Chatura and Neely Andy (2003): �Some moderating effects on the service quality-customer retention link�,

International Journal of Operations &Production Management,Vol. 23, No. 2, pp: 230-248.

62

*UGC-NET senior Research Fellow, Jiwaji University, Gwalior

Conceptual Framework of the Significance of Training Evaluation

*Pooja Sharma

Training and development is a systematic process that intends to ensure that the organisation has

capable employees, to meet the challenges of its dynamic environment. An investment in training function

enables the organization to have skilled workforce and employees become productive in their jobs. The

main objective of training and development programs is to enhance the employee capabilities and

organizational capabilities. This paper provides refresh insights of the role of training in enhancing the skills

and knowledge of employees. This study reflects major benefits of training evaluation and focuses on the

steps of systematic training. It highlighted the several studies of different authors in this field and presented

the noteworthy contribution in respect of training evaluation. Implications are also presented for helping in

further studies. Finally, conclusions are made about the key findings of the study.

Keywords: Training, Training evaluation, Models of evaluation

Introduction

In India, many organizations focus on the development of human resources and conduct so many

training programmes to train the man force. The biggest challenge of today's companies is to remain in

the marketplace, attract new customers, meet customer expectations, and attain customer satisfaction.

Training and development functions are important for all companies departments, businesses and have

importance for small organizations too.

Training and Development

The greatest strength of the country is its human resource. Proper utilization and development of

human resource is considered as an integral part for the prosperity of the Nation. (Westhead and Storey,

1996) defined training as �the process by which employees acquire the knowledge and skills related to

their work requirements by formal, structured or guided means� and will be used interchangeably with

learning. Training is provided to employees in the areas of operations, technical and allied areas, on the

other hand executive development refers to developing an employee in the areas of principles and

techniques of management, administration, organization and allied areas.

Objectives of the study

1. To study the systematic process of training.

2. To study the relationship between training and evaluation.

3. To present a review of studies related to training evaluation.

4. To describe the significance and models of training evaluation

Steps in the systematic training process

lNeed Analysis - Need Analysis is concerned with defining the gap between what is happening and

what should happen in future. A training need exists when there is a gap between what is required to

an employee to perform their work competently and what they accurately know.

lSet objectives - As the mangers see the clear indications of the gap, they set objectives for the

training of the employees.

63


l

managers design an appropriate method to improve discrepancies. They also plan for the training

modules and mode of training.

lCollection of data - Data is collected by conducting interviews, through Questionnaires and

Surveys and by observing the people at work. With the help of interview, managers get necessary

information regarding the shortfalls of employees. Departmental heads takes the interview for this

purpose. Questionnaires and surveys also enable managers to get the employees input, because

they can formulate training courses with the help of these results.

lData Analysis - For the analysis of data, firstly Initial Analysis is to be done after considering the

factors such as time, money, number of people involved, criticality of skill, anticipated return on

investment, resources available, etc. When the analysis is done managers finalize the plan after

finding all the possible solutions.

lProvide feedback - The Head of the department makes a report and delivers it to the management

of the organization. After thorough evaluation of report and the presentations, management finally

decides whether to conduct training or not.

lDevelop action plan - When the Needs Identification process is completed all the data and

information is used as the basis for training design, development and evaluation. This can be done

both through a basic questionnaire sent just prior to a specific training event.

lValidation - Introduce and validate the training before a representative audience. In this, errors or

mistakes will be identified by providing training to a small representative group for further evaluation.

lEvaluation and follow up - It is a process of assessment of the total value of the training

programme/course in social and financial terms. In order to improve future programmes and to

eliminate those programmes that are ineffective evaluation of training is necessary.

Training Evaluation

The primary aim of evaluation is to improve training by identifying training activities that are

necessary for the success of organization in achieving their stated objectives. (Werner and DeSimone,

2006) defined training evaluation as �the systematic collection of descriptive and judgemental

information necessary to make effective training decisions related to the selection, adoption, value and

modification of various instructional activities�.

Training Evaluation: Purpose and Need

The main objective of evaluation of training programme is assessing training effectiveness. The

other purposes of training evaluation are:

1.To study the extent of transfer of learning i.e. the extent to which a trainee applies learned skills

to his/her job.

2.To gain practical insight in order to design, develop and deliver effective future programmes.

3.To determine whether the training and development programme justifies the cost.

4.To decide the number and type of participants should participate in future programme.

Determine design of Needs Identification - After the identification of the problem areas,

64


Benefits of Training Evaluation

l

lEvaluation provides feedback to the trainer about the entire training process. It helps in finding

the loopholes of the training and the changes required in the training methodology.

lIt ensures that the training programs are effective in increasing the trainees knowledge,

improving the work quality, and development of new skills within a certain budget.

l Better integration of training offered and on-the-job development.

lCapability of the trainers to relate inputs to outputs has been enhanced.

l Trainers and line manager co-operate each other in developing the staffs.

l Better discrimination of training activities.

Evaluation addresses both learning and the quality of training. It determines the best practices for

achieving the desired objectives and it is desirable result of the evaluation process. Training can also be

evaluated through job performance by measuring the extent to which trainees applied their learning on

the job or by measuring the impact of a training program on working of the unit or department.

(Armstrong, 1995) clearly stated that the effect of training not only on employees who attended the

training program but also on the department or unit from where the employee comes. Finally, evaluation

of training program can also be done by studying the impact of the training program on the entire

organization. Evaluating the outcomes of training is a challenging task. Learning new behaviour or

enhanced skills is the most powerful outcome of training. Knowledge includes facts and concepts for

doing a particular task. It ranges from orientation to become an expert. Attitude is a belief or feeling

towards the work. It means rethinking ideas, or forming attitudes about new topics and issues. Change

in behaviour of employees is the most difficult outcome to achieve. Therefore, training program should

be evaluated starting from the effects of the training on the employees who have attended the training

program in the workplace and the ultimate impact on the organization. For critically evaluating training

investments, Organizations required to know how changes in knowledge, behaviour, reactions affect

the outcomes of training. (Leach P. Mark and Liu H. Annie, 2003).In the same way organizations need to

know the value of measuring training at multiple stages. Hence, training is evaluated to determine the

extent of knowledge, skills and abilities delivered through training and translated into performance. A

training program is said to be effective, when it delivers what is intended.

Review of Training Evaluation

Al-Ajlouni; Athammuh and Jaradat, 2010 viewed that the evaluation process has various objectives

that need to be fulfilled. These objectives are concerned with the determination of change in the

organizational behaviour and the changes needed in the organizational structure. (Ogundejl, 1991)

determined three major approaches of training evaluation: quality ascription, quality assessment and

quality control and suggested that evaluation should be integrated with organizational life for increasing

the effectiveness of training. Iyer; Pardiwalla and Bathia, 2009 emphasized the Kirkpatrick's model and

explored the various methods of training evaluation for understanding its need. They concluded that

The effectiveness of the training programs is assessed through evaluation.

65


although there are different methods to evaluate training, still it is the weakest and most under developed

aspect of training. Gopal, 2008 examined the evaluation of effectiveness of executive training

programmes in Electronic of India Ltd. He determined two ways for this evaluation:

(1) Individual programme wise evaluation

(2) Overall evaluation of all programmes.

He discussed certain benefits of evaluation. Firstly, it provides useful feedback to the training

professional and management. Secondly, it facilitates appropriate and effective program in near future.

(Blanchard et al., 2000) discussed the training evaluation practices at both management and non-

management level in the organization of Canada through a survey. The findings of his study revealed that

only one-fifth of the Canadians organizations evaluated their training as suggested by academic

standards.

Sivakumar B. N., Navaneethakumar V, 2012 examined the training effectiveness among

managers in Manufacturing Industry of Krishnagiri District. For this purpose, evaluation of training is

based on four phases and these are:

1) Training needs analysis,

2) Pre training preparations required by managers,

3) The trainer and trainee involvement during the training

4) The post training program experience of the managers.

Srivastava.et. al., 2001 examined the effectiveness of various training programs of Tata Steal,

Shavak Nanavati Training Institute (SNTI), India. Training was offered by in-house centre of this institute

and effectiveness was measured in terms of results, such as satisfaction level, reaction and feedback of

participants, and change in performance and behaviour as perceived by participants, their immediate

supervisors, and departmental heads. Findings revealed that the satisfaction level of participants, their

superiors and divisional heads were above average for all types of programmes. The participants were

benefitted from the training program.

Haslinda and Mahyuddin, 2009 examined the effectiveness of training and development function in

the public sector. They suggested that training programs conducted in the public sector facilitates the

employees to contribute significantly to their organization by transferring the knowledge and skills

learned through the training activity. Rajeev. et. al., 2009 evaluated the training function by using a

combination of formative and summative evaluation techniques and approximates Kirkpatrick's model.

Models of Evaluation

Different models are used by organisations to evaluate training effectiveness. The most widely used

evaluation model is the four levels of evaluation model by Donald Kirkpatrick.

A. Kirkpatrick Model: Donald Kirk Patrick has introduced this model in 1959 to evaluate the training

effectiveness. In 1977 Kirkpatrick divided the evaluation model into four parts: reaction; learning;

behaviour and results. The detailed description of all four approaches is mentioned below:

66


l

course. In this approach participant, feelings about the program are evaluated. That means

how a trainee feels about training program they attended. Kirkpatrick called this level as a

measure of customer satisfaction.

lLearning level: The learning approach evaluates the extent to which the trainees learned the

knowledge and skills. This level aims to evaluate how much the participants have learned from

before to after the training program. Learning outcomes are changes in knowledge, skills or

attitudes of trainees.

lBehaviour level: This approach evaluates the extent to which trainee's job behaviour has

changed because of attending the training. It measures whether the knowledge, skills and

attitudes learned are transferable to the workplace to reflect positive changes in behaviour and

job performance. Changed behaviour can be measured through post training interviews and

meeting with managers of the learners.

l Result level: It measures the training programme's effectiveness, that is, what impact has the

training achieved? These impacts can include such items as monetary, efficiency, moral,

teamwork, etc. This level seeks to determine whether the learning affected the business such

as by providing more profit, high sales and reducing numbers of customer complaints. The first

three-levels of Kirkpatrick's evaluation � Reaction, Learning, and Behaviour are largely soft

measurements; however, decision-makers who approve such training programmes, prefer

results (returns or impacts).

B. CIPP Evaluation model: Daniel L. Stufflebeam developed this model in 1983 to assess the four

phases of evaluation. This includes context evaluation, input evaluation, process evaluation and product

evaluation. Main purpose of this evaluation is to improve the functioning of a programme.

lContext evaluation: It is aimed at determining the extent to which the goals and objectives of

the programme matched the assessed need of the organisation.

lInput Evaluation: It is designed to assess the extent to which programme strategies,

procedures, and activities support the goals and objectives identified in the needs assessment

and context evaluation. It involves evaluation of determining policies, budgets, schedules and

procedures for organising programme.

lProcess Evaluation: Process evaluation is a continual assessment of the implementation of

the action plan that has been developed by organization.

lProduct evaluation: The purpose of product evaluation is to measure an organisation's

improvement efforts in order to judge the short term and long-term goals of that organization.

C. CIRO approach: This model was proposed by Warr, Bird and Rackson for evaluating the

managerial training in the year 1970. This model was based on the evaluation of four aspects of training:

context, input, reaction and outcomes.

Reaction level: This level measures one thing: the learner's perception (reaction) of the training

67


l

the setting of objectives according to the organisation's culture and climate.

lInput evaluation focuses on the design and delivery of the training activity.

lReaction evaluation uses the information about the quality of training experience.

lOutcome evaluation focuses on the achievement gained from the activity. This evaluation is

assessed at three levels: immediate, intermediate and ultimate evaluation. The main purpose of

immediate evaluation is to measure changes in knowledge, skills or attitude before a trainee

returns to the job.

D. Phillip's Evaluation approach: Phillips (1996) suggested one more level to Kirk � Patrick's four

level evaluation approaches. In this new level, return on investment (ROI) is to be calculated, that is

generated by training. The ROI can be expressed in several ways; it is usually presented as a ratio or in

percentage of cost/benefit. This approach provides a logical framework to trainers to view ROI both from

human performance and from business outcomes perspectives. It compares the monetary benefit from

the programme with its costs. Generally, most of the HRD organisations conduct evaluations to

measure satisfaction; very few actually conduct evaluations at the ROI level, because ROI is a difficult

and expensive process.

Implications

In this study, the benefits of training is clearly mentioned so that it allows the human resource

management to be a strategic organizational player in designing, delivering and evaluating the training

function and to move away from the negative connotations associated with this function. With respect

to the practical contributions, the findings of this study can be used as a guideline by Human resource

department or managers to improve the design and administration of training programs in their

organizations.

Conclusion

Employee training and development function are becoming an important function of human

resource management as they ensure the development of human resources and assist the organization

to compete, the today's rapidly changing situations of business. By knowing this fact, Indian companies

started investing in training and development for delivering quality outcome. Work force in developing

country like India is the most significant resources and it is necessary to train and fully utilized by the

organization.

References

l

Journal of Finance and Economics, 37, 2010, 56-65.

lBlanchard P.N., Thacker J.W., and Way S.A. (2000), Training Evaluation: Perspective and Evidence from Canada, Indian

Journal of Industrial Relations, 33(3), 295-304.

lGopal (2008), Effectiveness of Executive Training Programs, the Indian Journal of Commerce, 61(3), 2008, 143-150.

lHaslinda, A., and Mahyuddin, M.Y. (2009). The effectiveness of training in the public service. American Journal of Scientific

Research, 6(2009), 39-51.

Context Evaluation evaluates the factors such as the correct identification of training needs and

AL-Ajlouni M.M, Athamneh M.H.S., and Jaradat A.A., Methods of Evaluation: Training Techniques International Research,

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l

37.

lKirkpatrick, D. L. (1976). Evaluation of training. In R. L. Craig (Ed.), Training and development handbook: A guide to human

resource development. New York: McGraw Hill.

lKirkpatrick, D. L. (1959). Techniques for evaluating training programs. Journal of ASTD, 11, 1�13.

lOgundeji O.A. (1991), Assuring the Quality of Training through Evaluation: A Model, Journal of Managerial Psychology, 6(1),

3-11.

lPhillips, J.J. (1996). ROI: the search for the best practices. Training and Development, 50 (2), 43-47.

lRajeev, P., Madan, M.S., and Jayarajan, K. (2009). Revisiting Kirkpatrick's model � an evaluation of an academic training

course, Current Science, 96(2), 272-276.

lSivakumar B. N., Navaneethakumar V (2012) �Evaluating the Training Effectiveness among Managers in Manufacturing

Industry with Reference to Krishnagiri District� European Journal of Social SciencesVol.27 No.3

lSrivastava K.B.L., S. Deb, and A. P. Prasad, (2001) Evaluating Training Effectiveness and Customer Satisfaction in Tata Steel:

A Case Study, Indian Journal of Training and Development, 1(1), , 45-56

lWarr P., M. Bird, and N. Reckham (1970), Evaluation of Management Training (London, Gower Press.

lWerner, J.M., and De Simone, R.L. (2006). Human Resource Development (4th ed.), New York: Thompson Southwestern.

lWesthead, P and Storey, D 1996, Management training and small firm performance, Why is the link so weak? 'International

Small Business Journal, Vol. 14, no. 4, pp13-24,

Iyer R., Pardiwalla P., and Bathia J., Training Evaluation Practices in Indian Organizations, HRD News Letter, 25(8), 2009, 35-

69

A Study on Investors' Perception towards Investment in Mutual Funds other than Direct Equity with special reference to Mathura City

* Ankit Goel **Dr.Rajendra K. Khatik ***Dr. Deepak Singh

*Research Scholar, School of Commerce and Business Studies, Jiwaji University, Gwalior (M.P.)**Sr. Assistant Professor, School of Commerce and Business Studies, Jiwaji University, Gwalior, (M.P.)***Principal, S.R.D. College, Morena (M.P.)

In the current economic scenario investments in only non-risky avenues like bank and Post office are

not enough as return provided by these schemes are very less. So to get high returns investors

need to rethink and should park some of their investments in other investment avenues like share,

mutual funds etc. At present with no doubt share market is showing all times high and also giving a

much high returns but as well as fluctuations in share market has put investors in confusion too. Whereas

Mutual Funds Industry is also consistently giving better returns and also provides various benefits

which may not necessarily be available if one directly invests in equities. Anyone investing in direct

equities requires regular monitoring of the same whereas in Mutual funds one need not do take a call

as it's actively managed basket of stocks with the assistance of a fund manager. Also volatility in stocks is

high as compared to Mutual funds. The objective of the study is to know the Investors perception

towards their investment in Mutual funds other than direct equity. Primary data using convenience

sampling through questionnaire method as well as secondary data from wide range of literature and

journal publications had been utilized. The findings shows that majority of investor's prefer to invest in

Mutual funds other than investing in direct Equity as they do not have time to actively monitor the

stocks, lacking in reasonable financial knowledge and also cannot bear direct volatility. This paper also

aims at suggesting ways to strengthen them towards rational decision making.

Keywords: Investor, Stock market, Return, Mutual Funds

Introduction

In today's competitive environment, there are lots of investment avenues available in the financial

market for an investor. He can invest in Bank Deposits, Corporate Debentures, and Bonds where

there is low risk but also low returns. Investing all the savings here only are not enough as return

provided by these schemes are very less. So to get better returns investors in current scenario need to

rethink and should park some part of their investment in other avenues like share, mutual funds etc.

Presently share market is showing nearly all times high and also giving a considerably better return

but fluctuations and volatility in share market has also put investor in confusion too. Whereas Mutual

Funds Industry is also consistently giving better returns and provides various benefits which may not

necessarily be available if one directly invests in equities. Anyone investing in direct equities requires

regular monitoring of the same whereas in Mutual funds one need not do take a call as it's actively

managed basket of stocks with the assistance of a fund manager. Also volatility in stocks is high as

compared to volatility in mutual funds. The purpose of this research is to study the popularity of

Mutual Fund vis-à-vis direct equity investment. The paper also focuses on investment strategies of

individual investors in Mutual Fund like diversification, types of mutual funds preferred by them,

their experience and satisfaction level.

Literature Review

Dr. Ravi Vyas conducted study on mutual fund investor's behaviour and perception in Indore city

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It was found that mutual funds were not that much known to investors, still investor rely upon bank

and post office deposits, most of the investor used to invest in mutual fund for not more than 3 years and

they used to quit from the fund which was not giving desired results. Equity option and SIP mode of

investment were on top priority in investors' list. It was also found that maximum number of investors

did not analyze risk in their investment and they were depending upon their brokers and agents.

Prof Gauri Prabhu, Dr N.M. Vechalekar stated in their research that Mutual Funds provide a

platform for a common investor to participate in the Indian capital market with professional fund

management irrespective of the amount invested. The Indian mutual fund industry is growing rapidly

and this is reflected in the increase in Assets under management of various fund houses. Mutual

fund investment is less risky than directly investing in stocks and is therefore a safer option for risk

averse investors. Monthly Income Plan funds offer monthly returns and invest majorly in debt oriented

instruments with little exposure to equity. However it has been observed that most of the investors

are not aware of the benefits of investment in mutual funds. This is reflected from the study conducted

in this research paper. This paper makes an attempt to identify various factors affecting perception of

investors regarding investment in Mutual funds. The findings will help mutual fund companies to

identify the areas required for improvement in order to create greater awareness among investors

regarding investment in mutual funds.

Gaurav Agrawal and Dr. Mini Jain stated that in today's competitive environment, different kinds

of investment avenues are available to the investors. All investment modes have advantages and

disadvantages. An investor tries to balance these benefits and shortcomings of different investment

modes before investing in them. Among various investment modes, Mutual Fund is the most suitable

investment mode for the common man, as it offers an opportunity to invest in a diversified and

professionally managed portfolio at a relatively low cost. In this paper, an attempt is made to study

mainly the investment avenue preferred by the investors of Mathura, and have tried to analyze the

investor's preference towards investment in mutual funds when other investment avenues are also

available in the market.

R. Padmaja in his study found that mutual fund is a type of professionally-managed collective

investment vehicle that pools money from many investors to purchase securities. As there is no legal

definition of mutual fund, the term is frequently applied only to those collective investments that

are regulated, available to the general public and open-ended in nature. Mutual funds have both

advantages and disadvantages compared to direct investing in individual securities. Today they

play an important role in household finances. So the present study aims at investor's behaviour

towards mutual funds with special reference to ICICI Prudential Mutual Funds Limited, Mathura. Data

was collected through primary and secondary sources. Primary data was collected through

structured questionnaire. Convenience sampling method was used to collect the data and entire

study was conducted in Mathura City. The study explains about investor's awareness towards mutual

funds, investor perceptions, their preferences and the extent of satisfaction towards mutual funds.

Some suggestions were also made to increase the awareness towards mutual funds and measures to

select appropriate mutual funds to maximize the returns.

71



1.To know the investors perception towards investment in mutual funds other than direct equity.

2.To explore the type of schemes of mutual funds preferred by Investors.

3.To examine the problems faced by investors while taking investment decision.


Research Design

This research study is descriptive in nature.

Data Collection Instrument

Both the primary and secondary data collection methods were considered. The primary data was

collected through a questionnaire designed for the study. Secondary data was taken from various

Research papers, Journals, Magazines and Websites.

Sampling Plan

·Targeted population: Individual Investors

·Sampling method: Convenience sampling

·Sample size: 75

Tools of Data Analysis

The data and information collected is classified, tabulated and processed and its findings are

presented in a systematic manner.


Table 1: Frequency Distribution of Respondents on the basis of Gender

S.No. Age No. of RespondentsFrequency

1 Male 57 57

2Female 18 75

Total 75

Cumulative

Source: Researcher's Survey

Interpretation : Out of the total respondent's 76% belong to male and rest 24% are females.

Table 2: Frequency Distribution of Respondents on the basis of Age

S.No. Gender No. of RespondentsFrequency

1 0 -20 Years 0 0

2 21-40 Years 36 36

3 41-60 Years 32 68

461 Years and Above 7 75

Total 75

Cumulative


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Interpretation: In the survey's undertaken majority of respondent's i.e. 48% are in the age group of 21

to 40 years followed by age group of 41-60 years which accounts for about 42%. 10% respondents are

above the age of 60 years.

Table 3: Frequency Distribution of Respondents on the basis of Qualification

S.No. Qualification No. of RespondentsFrequency

th1 Upto 12 3 3

2 Graduation 22 25

3Post-Graduation 38 63

4 Others 12 75

Total 75

Cumulative


Interpretation: Out of the total respondent's more than 50% respondents are having qualification up to thpost graduation. Very few which accounts for 4% are having qualification up to 12 class. This implies

that majority of the respondents are educated.

Table 4: OccupationFrequency Distribution of Respondents on the basis of

S.No. Occupation No. of RespondentsFrequency

1 Service 47 47

2 Business 11 58

3 Professionals 17 75

4 Others 0 75

Total 75

Cumulative


Interpretation: 62% respondents are from the service class followed by 22% professional respondents

and nearly 14% respondents are businessman.

Table 5: Frequency Distribution of Respondents on the Basis of Monthly Income

S.No. Monthly Income No. of RespondentsFrequency

1 Upto Rs.25000 7 7

2Rs.25001- Rs.50000 41 48

3Rs.50001- Rs.75000 25 73

4Rs.75001 and above 2 75

Total 75

Cumulative


73


Interpretation: Around 55% respondents are having monthly income between Rs. 25001 to Rs. 50000.

Only 2 respondents are having monthly income more than Rs. 75001.

Table 6: Investors Time horizon for investment

S.No. No. of of Investment RespondentsFrequency

1 Long Term 37 37

2 Medium Term 20 57

3 Short Term 18 75

Total 75

Time horizon Cumulative


Interpretation: Nearly 49% respondents out of total are having Long term horizon when it comes to

investment. While 24% respondents are also having short term horizon of investment.

Table 7: Familiarity with Mutual funds and Equity Investment

S.No.

1 Yes 48 63

2 No 27 12

Total 75 75

Familiarity Mutual FundsEquity


Interpretation: From the survey it is found that 64% respondents are having familiarity of Mutual Funds

Investment as compared to equity investments where more than 84% people are having familiarity with

respect to investments.

Table 8: Understand if return were the only criterion for evaluating the investment

S.No. No. of Return while InvestingRespondentsFrequency

1 Yes 39 39

2 No 36 75

Total 75

Preference of Cumulative


Interpretation: When asked that whether return were the only criterion for evaluating the investment

more than 50% respondents has shown acceptance for this. So it can be understood that return is an

important factor while considering investment.

74


Table 9: Understand the importance of other factors while making decisions in various investments

S. No. Factors No. of MultipleRespondents

1Past Performance 75

2Rating by a Research Agency 47

3Availability of Tax Benefits 51

4Minimum Investment Required 42

5Liquidity 53Source: Researcher's Survey

Interpretation: When asked about the factors considered while making decisions in various

investments nearly all of the respondents have shown approval for factor that is past performance

followed by liquidity and tax benefits. Rating by research agency comes among the low considered

factor.

Table 10: Preference of Investment between Mutual funds with direct Equity

st ndS. No. 1 Preference2 Total

1Mutual Funds 53 22 75

2Equity 22 53 75

Total 75 75 75

Preference


Interpretation: When asked about

Which out of two is more risky according to your current perception?

Preference of Investment between Mutual funds and direct Equity staround 71% respondents have given 1 preference to Mutual funds because of the benefits attached

and professional management of Mutual Funds.

Table 11:

S.No. No. of RespondentsFrequency

1 Mutual Funds 28 28

2 Equity 47 75

Total 75

More Risky Cumulative


Interpretation: 62% and more respondents feel that equity investment is more risky as compared to

investments in Mutual Funds.

Which out of the two gives more return according to your current perception?Table 12:


1 Mutual Funds 41 41

2 Equity 34 75

Total 75

More Returns Cumulative


S. No. Source No. of MultipleRespondents

1Television 44

2Internet 67

3Newspapers/ Journals 46

4Friends/ Relatives 29

5Agents/ Brokers 62Source: Researcher's Survey

75


Interpretation: Around 55% respondents feel that investment in mutual funds provides more return

than investment in equity.

Table 13: Source of Information for Investment Decision

Interpretation: These days Internet is the best source considered by more than 90% respondents as a

Table 14: While investing in Mutual Funds, which scheme you prefer most

Source of Information for Investment Decision followed by advice from agents and brokers. Source like

taking information from friends and relatives is considered as least adopted source.


1Tax Saving schemes 15 15

2Balanced Schemes 14 29

3Debt Scheme 9 38

4Equity Scheme 28 66

5Any other scheme 9 75

Total 75

Source Cumulative


Interpretation: When asked for the most preferred schemes in mutual funds investment. Equity

schemes is the one where more than 35% respondents have shown preference as the return is high in

these schemes followed by tax saving schemes and balanced schemes.

Table 15: Which mode of investment you take on while investing


1Online 32 32

2Offline 43 75

Total 75

Source Cumulative


S. No. Source No. of MultipleRespondents

1Lack of Knowledge 29

2Difficulty in selection of schemes 34

3Lack of confidence in service provider 21

4Inefficient investment advisors 41

5Any other 23Source: Researcher's Survey

76


Interpretation: Still majority of respondents are using offline mode of investment as compared to online

mode because of less familiarity with online mode of investments.

Table 16: Problems faced by Investors while Investing

Interpretation: Inefficient investment advisors and difficulty while selecting mutual fund schemes are

the problems faced by majority of investors.

Findings

lOut of the total respondents more than 50% of them invest for a longer horizon of period as

compared to investor who invest for a short duration which accounts for only 25%.

lWith respect to familiarity in Investment with regard to Mutual funds and direct Equity it was

found that most of the investors (84%) are having familiarity in equity investment as compared

to Mutual funds where it was only 64%.

lWhen asked whether return is the only criterion for taking investment decisions nearly 52%

have shown the assent.

lWhen asked about the riskiness between two investment avenues i.e. mutual funds and direct

equity 62% respondents opted for direct equity investment as a more risky avenue than

investments in mutual funds.

lWhen asked among the more return provider investment avenue between the two 54%

respondents opted for mutual funds investment as a more return giving investment avenue than

investment in direct equity.

lWhen it is being asked to find out the factors which are being considered most while taking

investment decisions past performance is being the one important factor which is considered

by all the investors and is followed by Liquidity factor and availability of Tax benefits factors 70%

and 68% respectively. The least factor which is taken care is minimum amount required to

Investment.

lWhen preference is being asked for investment decision between Mutual Funds and Direct

Equity more than 70% respondents have given their preference towards Mutual Funds as

compared to direct Equity.

77


l

the most preferred source of getting information about the Investment.

lIt was found that equity schemes of mutual fund are the most preferred scheme among

respondents followed by the balance fund schemes.

lStill nearly 60% of the respondents are investing through offline mode as they are not fully aware

of online mode of investing.

lWhen it was asked about the problems faced by investors while investing availability of

inefficient number of advisors and lack of knowledge counts the most.

Recommendations and Suggestions

There is a tremendous scope for the growth of mutual funds. Mutual funds can prove the best

investment option for all investors in the near future, provided proper education is provided to the

investors.

lAs majority of the investor invest for a longer period of time so mutual funds companies can

prepare their document showing past and prospective return from longer time horizon as

mutual fund industry has witnessed a high return in longer horizon of time.

lMutual fund companies should focus on getting investors aware about the risk associated with

mutual funds as investors are having lack of knowledge because of some benefits like

diversification, professional management etc. it is less risky as compared to direct investment in

equity which can further influence investors to give preference for their investment in mutual

funds.

lMutual fund Industry should take initiative to provide knowledge of mutual funds as very few of

the investors are having knowledge with this regard by doing joint initiative with various

brokering firms , investment advisors etc. so that investor can select schemes of mutual funds

according to their needs.

lCompanies should make aware investor about online mode of investments which will further

save their time and cost both.

Conclusion

In the present time investors are getting confidence day by day by acquiring knowledge through

various sources and there pattern of investment are also shifting from traditional, low risk investment

avenues to modern and risky investment avenues like equity and mutual funds. There has been a

remarkable increase in the mutual fund investors in last years but still it is very low as compared to other

countries and majority of the market is still untapped. Investors facing various problems in selecting

mutual fund as an investment option because of the very large number of schemes are there and

investors get confused in selection, so mutual fund industry should expertise their staff that will be able

to help investor's in selection of a scheme which is in accordance with their investment objectives. At last

but not the least it is found that

Internet and advice from Brokers and Agents which accounts for 89% and 82% respectively are

there are various benefits of investing through mutual funds which may

not necessarily be available if one invests directly in equities and this should be communicated to

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investors through various ways to make them confident to take entry or increase their investment in

mutual funds.

References

lAgrawal G., Jain M. (2013), ?Investor's Preference towards Mutual Fund in Comparison to other Investment Avenues?,

Journal of Indian Research, Vol. 1, No.4, pp. 115�131.

lBhushan P. and Medury, Y. (2013). Gender Differences in Investment Behaviour among Employees. Asian Journal of

Research in Business Economics and Management, 3 (12), 147-157.

lGaur Arti, Julee, Sukijha Sunita (2011), Difference in Gender Attitude in Investment Decision Making in India, Research

Journal of Finance and Accounting, ISSN 2222-1697,Vol 2, No 12

lGupta L.C., Choudhury U. K. (2001). How Good Are Mutual Funds: The Household Investors' Perceptions? Society for

Capital Market Research and Development.

lHinz, R.P., McCarthy, D.D. and Turner, J. A. (1997), Are Women Conservative investors? Gender Differences in Participant-

directed Pension Investments, in M.S. Gordon, O.S. Mitchell and M.M. Twinney (eds.), Positioning Pensions for the Twenty-

first Century, 91- 103, Philadelphia, University of Pennsylvania Press

lKesavaraja G. (2013), ?Study on Customer Perception towards Various Types of Mutual Funds in Chennai, Asia Pacific

Journal of Research?, Vol. i, No. x.

lLohana P.M., (2014), Growth of Mutual Funds in India, Acme International Journal of Multidisciplinary Research, Vol. 2, issue-

4, pp. 25-30

lMehta S., Shah C. (2012). Preference of Investors for Indian Mutual Funds and Its Performance Evaluation. Pacific Business

Review, International Volume 5, Issue 3.

lhttps://en.wikipedia.org/wiki/Mutual_funds_in_India

lhttp://www.franklintempletonindia.com/en_IN/investor/investor-education/fund-basics/how-mutual-funds-work8, No.7,

pp 56-64.

lShanmugham, R. (2000) �Factors influencing investment decisions�, Indian.

lSellappan. R, Jamuna.S and Kavitha. TNR (2013). �Investment Attitude of Women towards Different Sources of Securities - A

Factor Analysis Approach�. Global Research Analysis 2.2:34-36.

79

*Asst. Professor, Dept. of Commerce, Jagran College of Arts, Science and Commerce, Kanpur

Future Benefits and Shortcomings: 360 Degree Performance Appraisal

*Dr. Roopali Mishra

Performance appraisal is one of the functions of Human Resource Management for measuring and

evaluating the performance of the employees in an organization over a period of time as against the set

standards. Different methods are used for evaluating performance in different types of organizations and

360 degrees performance appraisal is one of them. Though it is not very popular in India but many big

organizations use this method for measuring employee's performance. Through this paper, an attempt

has been made to understand and present the methodology behind the 360 degrees performance

appraisal and how it can be implemented in organizations. Various benefits and disadvantages of

introducing this method into the organizations have also been listed down. The available literature

provides an overview regarding how this method is beneficial for increasing the overall efficiency of the

employee as an individual and the firm as a whole, and as a result performance improves and training and

development leads to real opportunities for promotion within the company. Employees are also motivated

and can have a positive knock-on effect in areas like customer service.

Introduction

360 degree feedback is a feedback taken from various sources. Under this system, as employee is

rated by his peers, superiors, subordinates and even the customers. Thus this system is named 360

degrees appraisal because one person is rated from all the sides. The employees get a broader view and

review of their performance which makes him able to list out his strengths and weaknesses. This method

can be used for developing training programs as the weak points of the employees are pointed out and

the employees tend to work hard for improving their performance. Appraisal under this method is done

with the help of questionnaires containing the list of competencies against which the individuals are

ranked, thus it ensures anonymity of the person filling the questionnaire. The questionnaire generally

contains aspects like leadership qualities, teamwork, communication, adaptability, goal orientation, etc.

360 degree feedback is commonly used for the following :-

lFor learning and development of the participants.

l For supporting the remuneration decisions.

l For appraisal, resourcing and succession planning.

Traditional methods and 360 degree feedback

The 360 degree feedback plan has to be clear regarding what the organizational objective is and

what will be the individual objective of every employee. This method is sometimes confused with the

traditional methods of appraisals or management sometimes tries to co-ordinate it with traditional

approaches. But, it is totally different from the traditional methods. It should be used as a standalone

personal development process. It should focus on developing skills of the employees and addressing

their development needs. But it can be used in enhancing the traditional approach which covers the

following:-

lIt concentrates on past performances i.e. what has been achieved and how it has been achieved.

l It sets the future objectives for the organization as a whole and individual goal.

lIt concentrates on what is to be done to achieve the future organizational and individual objectives.

80


Brief History

In the beginning of the 20th century the feedback of the workers mainly depend on their equation

with their boss and not on their productivity. Thus the appraisal system was full of biases.

In early 1950's, Management by Objective (MBO) came into picture. MBO diverted the focus on

working towards achievement of organizations objective and then concentrating on achieving group

and individual objectives. Thus performance became measurable against the set standards and as a

result performance went up and job satisfaction also increased. But this was also not free from bias as

the group member could be rated on the group's performance and not on his individual performance.

In mid-1960's and early 1970's need for providing more accurate feedback was felt. Thus feedback

from direct reports came into picture. Thus subordinates could tell how they felt about their managers

and it showed a positive impact on manager's performance.

In mid-1980's teamwork was encouraged and opinions from peers, boss and even customers were

given importance. Goals were set and employees were told about what is expected from them and thus

360 degrees feedback was born.

The feedback from subordinates to managers is referred to as 180 degrees feedback and when this

360 degrees feedback is twice i.e. once at the time of setting up of the goals and second when the

feedback is given then it becomes 720 degrees feedback.

Pre-requisites for having 360 degree review system

It is very important for the organization and the employees to be prepared in advance for the change

and accepting a new method for appraisal. Following are some points to be taken care of for this method

to be effective:-

lTop management should be able to spare so much of time to give feedback for all the employees.

lThe feedback thus given should be free from bias and anonymity should be ensured for the method

to be effective.

l The feedback should be considered seriously and the information should be used to bring positive

change in oneself and the organization.

l Teamwork should be encouraged in the organization in order to achieve the organizations common

objective.

lThere should be existence of healthy competition among the employees of the organization.

l Employees should be inquisitive and should want to know how people feel for them so that they can

improve their behaviour and performance.

360 degrees feedback and Indian scenario

The 360 degrees feedback has gained momentum in many countries but it is still to take off in full

swing in Indian companies. This is because people here are averse to change. They like following the old

traditions and patterns which have been made long back. Importance is given to the hierarchy and the

person on top rules. The subordinates follow the leaders even if any one of them is competent enough to

lead because the recruitment is still done on the basis of qualification and work experience and not on

the basis of competency. Moreover people here have a habit of pleasing their bosses and they do not

open up about their bosses because of fear of coming in his bad books. The authority flows from top to

81


bottom and the opinions of subordinates are not given any importance because of internal politics in

various departments. Moreover, appraisal information is needed for several purposes which ignore the

major purpose of the appraisal i.e. achieving the organizational objectives. Managers make false

promises and lack of training facilities lead to poor co-ordination among the groups and the individuals.

Benefits and Shortcomings of 360 Degrees Appraisal

Benefits

360 degrees appraisal gives chance to all levels of employees to give their input and contribute

towards the achievement of the organizational goals. A number of distinct benefits can be realized from

this type of appraisal, and this technique has been gaining widespread popularity among small

businesses. 360 degrees feedback helps the individuals to get a broader perspective of how other

perceive them and thus it motivates them to work harder towards achieving organizational goals. The

feedback provides a more rounded view of their performance. Following are some benefits of 360

degree feedback.

A. Creates awareness among employees and senior management

This system of feedback creates awareness and spirit to compete among the employees. They

tend to work hard to achieve their departmental and personal goals in order to have a better

performance ranking. Since, feedback is taken from peers also so employees tend to have better

relationships with their colleagues which results in healthy working environment. This system acts as a

three dimensional mirror because a person can have a different dimensional view of his performance.

Not only the employees, but senior management too gets to know their need for development. The

feedback thus received is considered to be more objective and valid as it's collected from various

sources.

B. All round development of the person being rated

This system helps in the all round development of the employees. They will have better interpersonal

relations within their department and with their seniors. They'll also maintain good relations with the

customers and suppliers. The flaws of persons can be known and accordingly training sessions can be

arranged to overcome the weaknesses of the employees. It also helps in developing good leadership

qualities as leadership qualities is one of the parameters for providing the feedback. It broadens the

scope for employees in enhancing their job role, performance, and views.

C. All efforts are co-ordinated towards achieving organizational objective

The feedback is taken on certain parameters mentioned in a questionnaire. These parameters are

generally same for employees of same level or same department or group. Thus the kind of work they

are expected to do is also same. They direct their efforts towards achieving their personal goals and

organizational goals. Their feedback also depends on how successful they were in achieving the

organizational objectives.

D. Helps in improving performance of organization as a whole

The companies can use the data collected through feedback programs to monitor consistent

patterns and areas of weaknesses for employees within the organization. Thus as discussed in the

above points, the top management can more effective and appropriate in conducting training programs

to overcome the weak areas. This will lead to improvement in performance of various departments in the

organization and as a result, the overall performance of the firm goes up.

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E. Increased consistency in the performance

An all-round feedback helps in improving the consistency in the working patterns of an organization.

The employees are more concerned regarding how others perceive them. This motivates them to

perform consistently towards achieving the organizational goals as this will help them to achieve their

personal goals as well, which will further lead to individual growth. Thus the employees will feel more

contented with their performance. 360-degree feedback allows employees to gain a more thorough

understanding of their impact on people they interact every day. This method helps in motivating the

employees who undervalue themselves.

F. Improved superior-subordinate relationships

In traditional appraisal system, the feedback is totally in the hands of the supervisor thus he can be

biased in his judgment. He can give good ranking to those in his good books or he can rank employees

on the basis of their recent performance while they expect to be ranked on whole year's performance.

This can lead to differences between superior and the subordinates. The 360 degrees feedback helps in

creating an environment of trust. The employees feel more motivated and work in teams towards

achieving the common objectives if the feedback is positive. Employees tend to be more honest with

each other and help each other.

G. Complete analysis of the subject

Since feedback is from many sources and every source has a separate relation with the subject. So

everybody gives feedback from their own perspective and as per their experience and expectations.

�Supervisors, for example, may judge employees based on their output, while co-workers judge others

based on their pleasantness, and subordinates judge supervisors based on their fairness.� Thus, this

feedback provides a complete analysis of the person being reviewed and it has a positive impact on him

and can induce him to change as per the observations.

H. Suitable for appraisal of top-management executives

This kind of feedback is suitable to review the top management as they don't have many people as

their supervisor or boss who can rate them. And they are the people on whose decisions the

organizations operate so their decisions affect almost everybody from employees to suppliers, and

suppliers to customers Subordinates can provide their opinion without any fear of being confronted

because this review is done on the principle of anonymity.

I. Helps in creating happy employees

Employees are more satisfied with their performance after they are reviewed by many sources and

get a chance to improve their performance and hone their skills through effective training. And they feel

happy in giving their views about their superior and this creates a sense of belongingness as their views

are considered important. After seeing that they can bring positive change in the working of the

organization, the employees feel valued and they stick to the organization for a longer time, thus

reducing employee turnover.

J. Helps in improving customer service

360 degree performance evaluation helps in improving the customer services as customers views

are also considered important in the review. Thus, the organization can understand needs and

expectations of the customers and can take product decisions accordingly to satisfy customers needs.

If the customers are happy then his inputs can be used to improve the business of the organization and it

will in turn improve the overall performance of the organization.

83


K. Effective HR decisions

It encourages the participation of all and thus makes HR decisions more qualitative. Since inputs

from all the levels inside the organizations and outsiders like customers and suppliers are collected

which helps in better understanding of the needs of insiders and outsiders and decisions can be taken

accordingly.

L. It's better than conventional system

The employees find this system better than the traditional feedback approaches/ system as it

pinpoints the favoritism and biases of the supervisors present in conventional appraisal systems. Thus,

this system is free from superior bias and impartiality.

Shortcomings

�360° employee feedback surveys are one of the most common HR practices. However there are

certain risks associated with introduction of a new technique into the organization. Moreover, people are

generally are averse to risk and change. Sure of anonymity in a small organization and in the absence of

anonymity; the usefulness of data is lessened. After reviewing the available literature, following are the

shortcomings of this system:-

A.Fear of being confronted

In the absence of anonymity, one will always shy away from providing his actual views about his

superiors and peers because of fear of being confronted. This can affect the relationships among the

employees and thus can affect the performance of the organization due to strained relationships among

departments.

B. Difference of opinion

Everybody has his own mindset and expectations. No two minds can be same in the organization

Employees working at different levels can have different opinions about a same person. The superiors

could have a different view point than the subordinates. The feedback also depends upon the

expectation of a particular person thus there can be difference of opinion and the feedback can be

affected.

C. No evidence of improvement on performance

�Most organizations have no cause-and-effect data that actually proves that the 360° process

directly improves productivity.� It can't be said with certainty about what kind of effect will it have on the

employees and whether it will actually result in bringing any positive change in the employees. No

evidence as such has been found which prove that managers in the organizations using 360 degree

feedback are more efficient than their counterparts in other organizations.

D. It's not futuristic

The performance of past is being judged and no such future plans are made by using this method.

Thus the employees last year's performance cannot be helpful in deciding the future course of action. As

such future is uncertain so nobody can predict how the employees will behave in future and one can't be

sure if they'll act in the desired manner

E. It's a lengthy process

As compared to one-to-one communication, this is a more time consuming process. It consumes a

lot of productive time of employees which can be utilized for other productive issues. �And unfortunately,

84


if there is a multi-year lag between changing the way we treat employees and their resulting improved

scores, most existing business and statistical process will never be able to prove a cause-and-effect

connection.�

F.It's a costly procedure

This is more costly process as it comprises of the cost of questionnaires and technological inputs

required for the process of feedback. These resources can be used for more productive purposes.

G. This is a secondary motivator

The rating is not the main motivator for high performance but it is the secondary reason for it. If a

company is providing good working environment and is paying well to the employees and they get

incentives, etc. for their performance than they themselves are motivated to work more.

H. Employees may be hardworking even without high rating

It is not necessary that only those employees who get high scores from people will work hard. It

actually depends on the nature of the employees. Some may be efficient from inside and some may not

work hard even after getting a high score. So it's basically not the score which motivates the employees,

there are many other factors which come into play.

I. Main aim is not the score but to increase productivity

The main aim of the organization is not to obtain scores but to increase the overall productivity. The

360 degree provides the management with the scores but the problem of productivity still remains to be

taken care of. It only ranks the productivity of the employees but ignores factors like how to reduce

labour costs and wastage of time, etc.

J. It's not a fair method to rate

An organization has so many employees. Some are top performers, innovators, game changers and

pioneers, but rating parameters are same for everybody. It is not fair to rate efficient and inefficient

employees on same scale. Some departments have large number of employees but some have very few

employees who may not be enough to make a feedback successful.

K. It does not provide solution to improve the productivity

The scores don't tell which actions are to be taken to improve the productivity. It only tells whether

the employees are performing well or not but the main task of choosing actions to improve employee

satisfaction and performance is done by the management only.

L. Employees can give poor remarks to the manager they dislike

Some employees give poor remarks to the managers they don't like and vice-versa. This is done on

purposely and the person being reviewed has to put in more efforts in order to be liked by people in the

organization.

M. Not suitable for rating managers one hasn't worked with

This method is not suitable if the feedback contains large number of reviewers who may not even

know the manager they are rating. Some of them may not have even worked with the manager

concerned and have not seen his work but they are included in the appraisal. Such rating will be

misleading and proper conclusions can't be drawn out of it

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N. Subordinates cannot assess their managers properly

Subordinates don't have proper expertise to rate their manager. They are not competent enough to

judge their performance. They can just give their views about the managers based on his behaviour with

them but they may not be able to understand the work to be accepted from him.

Suggestions

Although 360 degree system has many advantages but it still has some loopholes which need

attention to make it work. Following are some of the suggestions which could find suitable to improve it:

lThis system needs to be co-ordinated with other developmental activities so that it yields better

results. By this the employees can become aware about the various jobs being performed and thus

they can give better review. If specific training is being linked with the process then it will help in

improved performance.

lThe system should be more objective. It should not include any remarks that can hurt others

feelings. Even if someone is not very pleasant to work then he can be asked this in a polite manner

and he should be given chance for improvement.

lMore importance should be given to the decisions to be taken after the feedback process is

complete. The process should not end at the feedback report; rather it should be aimed at providing

suggestions for the improvement and comprehensive training programs should be followed as

action.

lAppraisal feedback should be treated only as a part of developmental process and not the way for

development. Other developmental factors should be linked with appraisal process to motivate the

employees to improve their performance.

lProper care should be taken not to hut anybody's ego while giving remarks to him. Some

employees may be efficient in their work but may not like some kind of remarks against them. Care

should be taken while writing remarks.

l The appraisal system should be undertaken after taking into consideration the demands and

feelings of religious groups or labour unions in the organisation. Labour unions hold the power to

malign the decisions of workers by saying that the appraisal system is just a candy to lure the

employees to work. Thus, system should be designed by keeping in mind the psyche of such

groups.

lInternal politics and groupism should be discouraged within the organisation as it can affect the

appraisal system as it could lead to a particular pattern in rating. The employees form small informal

groups and they can decide among themselves regarding what kind of remarks to be given to a

particular person. This can change the review result hence formation of such groups should be

discouraged.

lTop level executives may not like to be reviewed by the junior level employees so they should be

explained about the benefits of this feedback system and they should be encouraged to accept

their feedback and to improve themselves accordingly.

l For the system to be successful, active participation of top management is required. They should

be involved from designing the feedback criterion in evaluating the feedback reports. And they

86


should make sure that the questionnaires should contain meaningful points and should cover the

actual experiences of the employees

l Everybody in the organization should provide the feedback seriously and there should be a sense of

commitment and loyalty while giving their opinion about someone. Honest opinions should be given

without any fear of undesirable action.

Conclusion

The 360 Degree Feedback can be used as an addition to the conventional system ofappraisal. It is

not feasible to use it as a standalone system of appraisal because of its shortcomings. It is only a part of

the development process and not the whole development process. It was also found that the system is

not being used properly as its importance is not clearlyunderstood by the companies but if it gets into the

minds of people properly and if it is handled properly then it can actually lead to the improvement of

organizations as well as individuals performance and it can reshape the internal and external

communication. Active participation of all the sources can make a lot of difference. Like any other

innovation, 360 degree feedback is also as good as the people who are operating it. Success of any new

thing depends on the acceptance by the people who are going to use it. Similarly, the success of 360

degrees feedback depends on the employees and management and on how they perceive it and it can

be successful only if it is followed by a desirable action of providing developmental training. The system

should also measure the leadership competency of the managers only then it will be useful in providing

the managers with the useful feedback. If the criteria for measuring performance are not set in

accordance with the organization's mission then it will prove to be a sheer wastage of time.

Referencesl

feedback Be Used Only For Developmental purposes? Greensboro, North Carolina: Center For Creative Leadership.

lDavid Ingram , �What Are the Benefits of 360 Degree Feedback?�, Demand Media

lDr. John Sullivan, �The Top 40 Problems With 360-degree Employee Feedback Processes (Part 1 of 2)�, www.ere.net, Feb

27, 2012

lEdwards, M. R., and Ewen, A. J., (1996). 360-Degree Feedback: The Powerful New Model For Assessment And Performance

Improvement. New York: AMACOM.

lFleenor, J. W., and Prince, J. M., (1997). Using 360-Degree Feedback In Organizations. An Annotated Bibliography.

Greensboro, North Carolina: Center For Creative leadership.

lKaplan, R. E., and Palus, C. J., (1994). Enhancing 360-Degree Feedback for Senior Executives. Greensboro, North Carolina:

Center for Creative Leadership.

lLobdel, D., (1997). Selecting An Appropriate Performance Appraisal Program For Spokane Valley Fire Department.

(Executive Development Applied Research

lNielKokemuller, �Advantages and Disadvantages of 360 Degree Feedback�, ehow.com.

lPerformance Management, �The 360 Degree Feedback. Advantages, Disadvantages and Design�, Human Resource in a

Nutshell, 26th October 2011.

lProject). Emmitsburg, MD: National Fire Academy. Richard LepsingerandAnntoinette D. Lucia, �The ART and SCIENCE of

360 Degree Feedback�,Jossey-Bass, Second Edition, 2009.

lRichard LepsingerandAnntoinette D. Lucia, �The ART and SCIENCE of 360 Degree Feedback�,Jossey-Bass, Second

Edition, 2009.

lRivera, R., (1996). Performance Appraisals A Change From Single Source To Multi Source Evaluations. (Strategic

Management Of Change Applied Research Project). Emmitsburg, MD: National Fire Academy.

lSimms, H. H., (1996). Subordinate Appraisal Of Supervisors An Improvement In Appraisal Technique. (Strategic

Management Of Change Applied Research Project). Emmitsburg, MD: National Fire Academy.

lTony Peacock, �The 360 Degree Feedback Pocket Book�, Management Pocket Books Ltd., 2007.

Bracken, D.W., Dalton, M. A., Jako, R. A., McClauley, C.D., Pollman, V. A., and Hollenbeck, G.P., (1997). Should 360-Degree

87

Ethical Dilemma and Accountant, Conceptual Analysis

*ITM University, Gwalior**Professor, Commerce, M. L. B. Govt. College of Excellence, Gwalior

Any person working as an accountant in the public or private atmosphere must remain unbiased and

trustworthy to ethical guidelines while maintaining financial statement of a Company. An accountant often

encounter ethical issues apart from the industry and must remain repeatedly attentive to decrease the

probability of outside forces influencing financial records, which could direct to both ethical and criminal

destruction. This study is an attempt in order to obtain clear view of those factors which are playing major

role in creation of ethical dilemma in accountants. In this paper an attempt is made to investigate

relationship of different variables with ethics of accountants and students who are about to adopt

accountant as a profession. The study recommends that accountants should follow the accounting

standards issued by the Institute of Chartered Accountants of India (ICAI) in carrying out their everyday

accounting activity and to avoid unethical issues in accounting.

Keywords: Accounting ethics, ICAI, Accountant

Introduction

The important role of the ethics has been brought back into the notice of many aspects of real life

because of the numerous financial scandals came into the focus and published in recent times in India

and many other countries. Now a day's it has become a comprehensive point of discussion in the world.

An ethical failure is one of the major factors involved in such kind of financial scandals. In the context of

market economy accounting has a lead role. Without accreditation of accounting any kind of financial

activity neither it could be possible nor wouldn't it. It provides information about financial position and

profitability to its internal and external users. An accountant and accounting firms have a very special

position and accountability to act in the public interest. The responsibilities of a professional accountant

to general public, owners, banks and governments requires that accountant must follow the general

principles of ethics in all phases and in order to achieve recognition and creditworthiness by banks,

governments and respect from society an accountant must be consolidated with the professional

behavior regulation. Accountant is required to maintain financial statement of an enterprise represent

the real financial conditions of the enterprise for a specific period on a particular date. Many important

sections of society are attached with the information in these statements and are of very vital importance

for those who directly and indirectly deals with that company. According to IFCA, 2005 dignity of the

profession of accountancy is due to its acceptance of the responsibility in support of the interest of

general public and investors. White collar crime and high amount of fraud creates to some uncertainty

about dignity, honesty and faith of the professional accountants. In present scenario of India it has been

noticed that there have been a lot of cases in banks and financial institutions wherein due to the ethical

issues of the respective Chartered Accountant. Fillip et al (2011) found that ethics can be measured and

analyzed by several methods of latest and classical framework. Accounting is a job and highly

supported by some kinds of rules and regulation. Duska et al., 2006, explain that in case of accountant

ethics are related with their behavior. Do's and dont's are the sense of duty of ethics. According to the

Asif, 2010, ethics are bunch of rules and regulations in order to find the truth out of the issue. Objectivity,

reliability, and accuracy are major components of GAAP (Generally Accepted Accounting Principles)

*Vinay Gupta**Dr. R. C. Gupta

88


and an accountant is supposed to perform his/her duties and express ethical behavior on the basis of

Generally Accepted Accounting Principles (GAAP) Francis (1990), as cited in Karaibrahimoglu, Erdener,

and Var (2009). To make sure that neither any kind of indiscipline nor any kind of fraud in the profession,

Chartered Accountants Act, 1949 was originated to control the activity of this profession of Chartered

Accountancy. ICAI (Institute of Chartered Accountants of India) is the working body of this act. To

prevent the objectivity, integrity, reliability and credibility of the financial information it becomes very

essential to verify and attest all financial statements by an expert in the same field. ICAI in India certifies

qualified candidates as chartered accountant for the verification of financial statement. The knowledge

of chartered accountant reflects �supervision� to construct the awareness and explanation in economy.

IESBA (International Ethics Standards Board for Accountants) is another governing body engaged in

framing guidelines for the accountant. Guidelines are helpful in the process of decision-making these

could not be utilized as solution for the present ethical issues. One of the basic reasons of fraud or ethical

issue is the difference in set of the ethical standards of different accounting bodies in different countries.

Karaibrahimoglu, et al., 2009, suggest that ethical issues would be controlled with same guidelines and

standards throughout the world. Jones and Abraham (2007), founds that accounting profession is more

than simple reporting system and book keeping therefore ethical thought have gain more attention in

recent years. Accounting has developed into a difficult set of data processing with possible

manipulation of financial information. Alexander and Britton (2000) found that an accountant is the

person who is responsible to make financial reports to achieve its basic objective of providing

information to those users having right of such information. Mahdavikhou and Khotanlou, 2011, noted in

their research that ethical behavior of an accountant is more important than auditing. Current acts of

utmost indignity in the act of accountant have damaged the status of the profession therefore the issues

of ethics in accounting profession should be analyzed in more detailed processes for the better

conduction of profession because an accountant have accountability to the public at large. According to

Carrol, 2005, ethical way of working is expectation and essential act of accounting Profession.

Ethics��?

According to Asif, 2010, �ethics is a set of ethical criteria to investigate the truth or falseness of an

issue�. Ethics is combination of moral principle which works as a checkpoint of immoral values towards

accounting profession. It is known as a branch of philosophy related to human behavior about the

sincerity of the activity and response of that behavior. Every professional has a set of values but

sometimes peoples ignore them. Many moral principles have been defined by other Philosophers,

religious groups, financial institutions and other professional bodies by different methods. In India ICAI is

a body which makes different kinds of rule and law in commerce for professional, industrial groups and

professional ethics regulations. Professional ethics are the facts explaining the required sense of

working in each kind of jobs and introduction of sensible directions to determine the responsibilities

(HosseiniKahnuj, 2013). George and Jones (2005) in Karaibrahimoglu et al., (2009),Fleet (1991) and Idris

(2011) noted that ethics are standards about determination of right and wrong. Also, Nwakpa (2010) and

Idris (2011) found that ethical activity are those types of activities which are good or expected type of

behavior of a professional.

Accounting and Ethics

�Ethics are very important in the field of accounting� this statement can be supported by many

89


events which reflect the importance and necessity of ethics. Some examples of scandals due to ethical

issues in the world which shows that professional ethics also have equal importance as technical ethics

are:

l It is an example of biggest corporate fraud of India also known as

Enron of India. Manipulation in the earnings of the company and fictitious cash in the financial

statement of the company.

lEnron in the USA:- It is one of the established famous companies in the world of power and energy.

Due to false presentation in the financial statement it went bankrupt.

lWorldCom in the USA:- It is one of the famous companies of telecom sector in USA with its more

than 75,000 employees and went bankrupt due to creation without demands, false presentation

and hidden losses.

lParmalat:- It declared bankrupt by financial scandal due to manipulation of accounts by the

professionals to present a beneficial reflection of company performance.

lHIH in the Australia:- It is a biggest corporate collapse of Australia. False presentation in financial

statements was one of the most important causes behind this financial scandal.

Common Ways of Accounting Scandals

Most of the scandals have centered on the false presentation, false valuation of assets and

disclosers. Fraudulent financial reporting is the false presentation of the financial statements by

company management. Generally, such kinds of activities takes place with the intent of fraud with

investors and maintaining the company's share price. These kinds of acts may produce good result for

short term but usually it has been observed that such acts are proven harmful and badly affects the

future of the company. Such kind of short-term attention on company financial activities is sometimes

known as "myopic management." Misappropriation of Assets in company is one of the most common

ethical issues in the field of accounting. Misappropriation of assets means the utilization of company

assets for any other purpose than normal course of business of the company. It can take place nearly at

any level of the company, for example, posting of domestic expenses in the books of company as

business expenses. Discloser violations are errors of ethical omission. While purposely recording

transactions in a way that is not defined by GAAP (generally accepted accounting principles) is taken as

fraudulent financial reporting, discloser of information may cause to change the mind of investors. As

investors could change their options about investment offers, therefore failure to disclose information to

investors is considered fraudulent financial reporting.

Factors Affecting Ethics of Accountant

Present trade scenario is more complex in nature therefore management of any organization wants

to improve the ethical standards of the accounting profession. Very important factor is Self-regulation

which is better and turns out remarkable results. Moreover, many other factors which are considerably

manipulate the decisions of accountants. Some of them are:

Satyam computer in India: -

90


Personal Code of Ethics

This factors is most responsible for changes in accounting decisions and is known as man's

personal code of ethics which influencing his behavior.

Legislation

It is previously noted that the Government will get involved and endorse laws only when the traders

are performing a lot of unethical and selfish activities with totally ignorance of their accountability to the

general public. No society can accept such mischief constantly. It will definitely apply pressure on the

Government and as a result government has no other alternative to exclude such harmful behavior of the

businessmen.

Government Rules and Regulations

Laws maintain Government regulations on the subject of the working circumstances, product

protection, legal warning etc. These makes available some course of action to the business accountants

in determining what are acceptable or documented standards and practices.

Ethical Code of the Company

When a company grows up bigger, its standard of ethical behavior has a tendency to rise. Any

immoral behavior or manner on the part of the company shall jeopardize its recognized goodwill and

public image. Therefore, most companies are very careful in this admiration. They issue detailed

guidelines to their assistants regarding the transactions of the company.

Social Pressures

Social forces and pressures have significant manipulating power to make changes in accounting. If

a company supplies low quality products and get occupied in unethical activities, the consumers will not

take interest towards the company. Such rejection shall apply a pressure on the company to act

sincerely and hold fast strictly to the accounting ethics. Sometimes, the society itself may turn against a

company.

Ethical Climate of the Industry

Current industry today is functioning in a more and more cutthroat environment. Therefore only

those firms, which sternly hold on the ethical code, can maintain its position unaltered in its line of

business. When other firms, in the similar industry are sternly adhering to the ethical standards, the firm

in question should also execute up to the level of others. Any company cannot survive in future if its

performance is below than other companies, in the same industry.

Conclusions

Ethics is not a simple matter but it has become seriously imperative in the business surroundings in

which disintegration of appropriate standards can have a shocking outcome on organizations,

investors, suppliers, employees and, customers. Looking back over the past 25 years, there have been

several high-profile corporate scandals and all involved the human ethical failings to some degree.

Possibly, the revolution in information communications technology has intended that more people know

about these issues, and more quickly than ever before, and that such events are nothing new. Perhaps

this is one of the very reasons why professionals must constantly reaffirm their commitment to ethical

values and high standards of moral behavior.

91


References

l

lAlexander, D., and Britton, A. (2000), Financial Reporting. (5th Ed.), London: Thomson Learning.

lDuska, Ronald, F., Brenda, Shay (2006), Accounting Ethics, Newyork, Blackwell Publishing.

lFilipe, J.A., Alberto, M., and Ferreira, M. (2011), An Ethical Issue in Anti-Commons Management

lAquaculture Case in Portugal, International Journal of Academic Research, 3(1), 250-252.

lKaraibrahimoglu. Y.Z Erdener, E. and Var T (2001), �Ethical behaviour in accounting: Some evidence from Turkey.� African

Journal of Business Management, 3(10): 540-547.

lHosseiniKahnuj, Narges. Professional ethics in accounting (accounting and audit). Top manager of administrative

management. Second national conference of accounting, financial management and investment. Golestan province,

Gorgan, Esfand 2013.

Asif, A., (2010), Ethics in Auditing; And Ethical Studies in Different Accounting Bodies (2010), 10(3), 349-356.

Role of Travel and Tourism Industry in the Growth of Service Sector in India

92

*Deepa Kumari

*Asst. Prof.Dept. of Commerce, Jagran College of Arts,Science and Commerce

Today, more and more people in India are taking advantage of leisure and recreation services such as

eating in restaurants, visiting the museums and galleries, going to the movies or travelling to places of

tourist interests. These are all things that many people would not have done in the past. Services are

intangible, inseparable, variable, and perishable. Each characteristic poses problems and requires

strategies to deal with those problems. Service marketing concepts and strategies have developed in

response to the tremendous growth of service industries, resulting in their increased importance to the

world economies. Almost all the absolute growth in number of jobs and the fastest growth rates in job

formation are in service industries. The tremendous growth and economic contribution of the service

sector have drawn increasing attention to the issues and challenges of service sector industries

worldwide. Access to vast quantity of information, entertainment and music is unbelievable compared to

what people had just 20 years ago. So clearly, in some ways and in many industries, services are better

than ever.

Despite these obvious improvements, there is hard evidence that consumers perceive a lower quality of

overall service and are less satisfied.

Thus this paper attempts to analyse the impact and challenges faced by travel and tourism industry in

India.

Introduction

Tourism has become the world's largest employer and this sector is one of the world's largest

economic forces with more than 200 trillion dollars yearly. This sector is today the second largest foreign

exchange earner for India. India's travel and tourism industry has huge growth potential. Together with

globalization, the influence of technology is the most profound trend affecting service marketing today.

Further the domestic tourist travel for business and leisure is also showing increasing trend. Service

marketing became a discipline study for the past 20 years even though services themselves have

existed for many years. Traditionally, most services were performed at home (cleaning, education, hair

dressing, medicines etc) and therefore no statistics for services were maintained. As services started to

move out of the home and became commercialised, they were also recognised as significant

contributers to the economy and marketers also started considering them more seriously.

Objectives of The Study

lTo find out the significance of travel and tourism industry in the country's economy.

lTo analyse the role of marketing in travel and tourism.

lTo study the challenges related to travel and tourism industry.

lTo analyse the positive and negative aspects of travel and tourism Industry.


The study by Soundara Rajan (1992) relates to the functioning of Tamilnadu Tourism Development

Corporation and it's role in promoting tourism in the state. The study has given emphasis on the wide

range of services provided by TTDC like hotels, restaurants, youth hostel, resorts, trade fair, etc. The

93


study examined the commercial viability of such services provided by TTDC. An attempt has made to

analyse the impact of all the activities of the TTDC contributing to the development of tourism in

Tamilnadu. He analysed whether the infrastructure service provided by TTDC in the state has acted as a

catalyst in the development of tourism industry in Tamilnadu. The study also covers that a reasonable

return for the services rendered could be ensured without creating hardship to the consumers and

tourists. The study confirms to the principle of innovative and explorative research. The primary data are

collected from visitors, tourists, various officers of TTDC, DTPC, hotel, etc. Secondary data are collected

from reports of govenment agencies and others. The study concludes that the tourism is an activity

generating a number of socio economic benefits. It creates employment opportunities and a source of

foreign exchange.

G.S.Batia and A.S.Chawla (1998) in their work covers the economic importance of tourism in the

national economy which can be appreciated with reference to its contribution in employment

generation. Tourism can be visualized as an important factor in activating the idle resources of the

nation. Here the authors try to explain tourism an export industry. In this industry we do not export real

wealth of our country, but what we sell is dream with an aim of attracting more and more and more

visitors to our country and its attractions. They conducted a number of studies with regard to different

aspects of tourism in India. They also analyse the recent trends in tourism marketing in India. The study

finds that, in recent years attention has been shifted from product destination to potential destination

visitor. The study suggests that there is lack of facilities for teaching tourism as a field of study. So it is

necessary to develop different types of management courses in tourism.

The book titled �Tourism and Economics� by Saurabh Kumar Dixit (2005) provides a purposeful

literature on demand, supply, implications and impact of economics on tourism industry. Tourist seeking

to maximize the benefits he expects from travel experience. Firms providing tourist goods and services

seek to maximize profits. The government and host community trying to utilize the tourist expenditure in

their area. Tourism provides a large employment opportunity to the economy. This will increase the

income of the host country. The book analyses the impact of tourism on the economy of the host

country. The book concludes that tourism can contribute to poverty alleviation through the creation of

employment and changes in the existing employment practices. Tourism can create jobs, which benefit

the poor where specific measures are taken to recruit and train them. Primary and secondary data are

used for analysis. Samples are selected by using multistage stratified random sample method.

Statistical methods like averages, indifference curve, regression, are used in analyzing the data and

inferences are reported as conclusion.

Peter E Murphy and Ann E Murphy (2006) in their study titled �Strategic Management for Tourism

Communities � Bridging the Gaps� made an attempt to analyse the various problems in the

management of tourism. Tourism is a business that requires planning, marketing and investment in

products and services. The study concludes that the attitudes of local people, the quality of environment

and the availability of desired products and services are all factors that determine the success of

tourism.

Significance of Travel and Tourism Industry on Country's Economy

India is a country known for its lavish treatment to all visitors, no matter where they come from. Its

visitor-friendly traditions, varied life styles and cultural heritage and colourful fairs and festivals held

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abiding attractions for the tourists. The other attractions include beautiful beaches, forests and wild life

and landscapes for eco-tourism; snow, river and mountain peaks for adventure tourism; technological

parks and science museums for science tourism; centres of pilgrimage for spiritual tourism; heritage,

trains and hotels for heritage tourism. Yoga, ayurveda and natural health resorts and hill stations also

attract tourists.

The Indian handicrafts particularly, jewellery, carpets, leather goods, ivory and brass work are the

main shopping items of foreign tourists. It is estimated through survey that nearly forty per cent of the

tourist expenditure on shopping is spent on such items.

Despite the economic slowdown, medical tourism in India is the fastest growing segment of tourism

industry, according to the market research report �Booming Medical Tourism in India�. The report adds

that India offers a great potential in the medical tourism industry. Factors such as low cost, scale and

range of treatments provided in the country add to its attractiveness as a medical tourism destination.

Some of the recent initiatives taken by the Government to boost tourism include grant of export

house status to the tourism sector and incentives for promoting private investment in the form of Income

Tax exemptions, interest subsidy and reduced import duty. The hotel and tourism-related industry has

been declared a high priority industry for foreign investment which entails automatic approval of direct

investment up to 51 per cent of foreign equity and allowing 100 per cent non-resident Indian investment

and simplifying rules regarding the grant of approval to travel agents, tour operators and tourist transport

operators.

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel

and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009:

The demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and

2019 and will place India at the third position in the world.

India's travel and tourism sector is expected to be the second largest employer in the world,

employing 40,037,000 by 2019.

Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between

2010 and 2019.

The report forecasts India to get capital investment worth US$ 94.5 billion in the travel and tourism

sector in 2019.

India is projected to become the fifth fastest growing business travel destination from 2010-2019

with an estimated real growth rate of 7.6 per cent.

Prospects

Healthy economic growth recorded in past few years, especially in the services industry, has led to

increase in business travel. Higher disposable income and affordability have increased domestic leisure

travel in India. Foreign tourist arrivals in India have also grown. The industry's performance was hit in

2009 due to the global economic slowdown, terror attacks in Mumbai (November 2008) and H1N1 virus.

However, the industry has shown signs of recovery in the first half of 2010. This is a clear indicator that

the long-term prospects for the Indian travel and tourism industry are bright. India is expected to witness

increased tourist activity both in the business and leisure segments in the coming years. International

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inbound traffic is expected to grow rapidly with increasing investment and trade activity. India has been

identified as one of the fastest-growing countries in terms of tourism demand.

Role of Tourism Marketing

There are various reasons for a tourist to visit a destination of some interest. A destination might be

visited because of its natural landscape or resource, historical monument, religious significance,

shopping or it may be a man-made tourist attraction. But how to create the need amongst the potential

tourists about the destination is what tourism marketing is all about. In tourism marketing we are

marketing a destination. Once a destination is sold to a customer or customer group, everyone who is

providing some service in relation to tourism gets benefited. The hotels or the carriers or the travel

agents, all benefit if tourist traffic is generated for a destination from domestic or foreign or both sources.

A destination can have a variety of products or benefits to offer. It could be of historical importance

or have a natural resource or an artistic landscape and in the absence of each a unique resource could

be created. It could be a religious significance or an adventure or a shopping paradise. All these features

are important. A destination offers a unique combination of features which cannot be duplicated

elsewhere. Building on this uniqueness of benefits to generate more tourism is the name of the game

which is called tourism marketing.

They have to identify an appropriate target market segment, identify the services that satisfy the

segment needs, they have to position themselves in the market place in relation to their competitors and

lastly, they have to promote their services effectively.

Challenges

There are various challenges faced by tourism industry which are as follows:

lLack of proper infrastructure

Infrastructure needs for the travel and tourism industry range from physical infrastructure such as

ports of entry to modes of transport to urban infrastructure such as access roads, electricity, water

supply, sewerage and telecommunication. The sectors related to the travel and tourism industry include

airlines, surface transport, accommodation (hotels), and infrastructure and facilitation systems, among

others.

lHuman resource

Availability of skilled manpower is a major challenge faced by the travel and tourism industry, one of

the largest employment generators in the country. To sustain growth in the travel and tourism industry,

trained manpower/ workforce is required at every level � managerial, supervisory, skilled or semi-

skilled. Challenges faced at each level are different. At mid and senior management levels, the industry

faces talent crunch and at the front-line staff level, although human resources are adequate, a boom in

other service industries such as banking, retail, airline and BPO have resulted in the shortage of

manpower at this level for the travel and tourism industry. Thus, we have a demand-supply mismatch

with respect to manpower in the travel and tourism and hospitality sector in India. A study conducted by

Ministry of Tourism suggests that existing supply of human resources do not cater to even 40% of the

demand. Thus, the industry has no alternative but to fill the void with untrained resources. Such a high

proportion of untrained manpower would adversely affect quality of services offered to the tourists.

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l

In addition to tour operators and hotel staff, tourists interact with persons from different

backgrounds, occupations and experiences. Such people include staff at bus/railway station,

immigration staff at airports, taxi/coach operators, ticketing/ travel agencies, small hotels,

dhabas/roadside eateries, staff at heritage sites, and tour guides, among others. The degree of service

offered by these various stakeholders has a significant impact on determining the tourist's overall

experience of India as a tourist destination. The government has taken initiatives to promote responsible

tourism by sensitising key stakeholders of the tourism industry through training and orientation, to

develop a sense of responsibility towards tourists and inspire confidence of foreign tourists in India as a

preferred destination. One such major initiative is the �Atithi Devo Bhava� campaign. More such efforts

are required to improve the degree of service across various operators.

lMarketing and promotion

Marketing and promotion of India as a major tourist destination is critical for the industry to achieve

its potential. Lack of adequate budgetary support for promotion and marketing, compared with

competing tourist destinations, is a major reason for India lagging behind as a tourist destination.

Marketing under the �Incredible India� campaign helped to place India as a good tourist destination on

the global tourism map. Indian tourism products are promoted primarily by the Ministry of Tourism with

the involvement of state governments through the State Tourism Development Corporations. Newer

tourism concepts, which include cruise tourism, adventure tourism, agri tourism or rural tourism, are

emerging in India and these require support to develop and flourish. Hence, greater marketing push for

these different products is required. To remain competitive in the fiercely competitive field, India needs to

change its traditional marketing approach to a more competitive and modern approach. There is a need

to develop a unique market position and the brand positioning statement should capture the essence of

the country's tourism products: i.e., they should be able to convey an image of the product to a potential

customer.

lTaxation

Travel and tourism in India is a high-taxed industry, which makes India expensive as a tourist

destination. This is affecting the growth of the industry in India and India is losing out to other low-cost

destinations. Inbound tourism is the one most affected. Various taxes are levied across the entire

industry right from tour operators, transporters, airline industry to hotels and these include service tax,

luxury tax, tax on transportation, tax on aviation turbine fuel (airline industry), and various taxes on

transportation. In addition, these tax rates tend to vary across different states in the country.

lSecurity

Security has been a major problem as well for growth of tourism for a number of years. Terrorist

attacks or political unrest in different parts of the country have adversely affected sentiments of foreign

tourists. Terror attacks at Mumbai in November 2008 strongly blew the tourism industry in the country.

The terror attacks raised concerns of safety. In addition, insurgency in different parts of the country also

makes India's image as a safe destination. Following the terror attacks in Mumbai, security at tourist

spots, airports and hotels has been beefed up to regain confidence of tourists. However, the

government needs to take a proactive approach in addressing these issues and in averting the potential

impact on the industry.

Service level

Cyber crime is another major challenge the travel industry faces. Use of Internet in the travel and

tourism industry has increased rapidly in recent years and has emerged as one of major segments for

online spends. However, some of the biggest frauds have been detected in this segment and the issue

of online security has assumed significant importance. While the online travel industry has registered

robust growth, major concerns relating to security of online transactions persist. The industry needs to

take measures to make the process of online bookings more secure and transparent and also needs to

create awareness regarding this.

l

For inbound international tourists, visa procedures are seen as a hindrance. A number of countries

competing with India for tourists provide visa on arrival. India should provide visa on arrival for more

countries or for certain categories of tourists for a specific duration.

A number of projects in the tourism infrastructure segment and in the hotels industry are delayed

due to non-attainment of licenses and approvals on time. The government recently cleared the long-

standing proposal for single window clearance for hotel projects to hasten the process of infrastructure

development. Implementation of this proposal would help development of tourism and hospitality

infrastructure in the country. There is a greater need for speedier clearances and approvals for all

projects related to the industry.

Impact of Tourism in India

Tourism industry in India has several positive and negative impacts on the economy and society.

These impacts are highlighted below.

Positive Impacts

l Generating Income and Employment: Tourism in India has emerged as an instrument of income

and employment generation, poverty alleviation and sustainable human development. It contributes

6.23% to the national GDP and 8.78% of the total employment in India. Almost 20 million people are

now working in the India's tourism industry.

l Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange

earnings in India. This has favourable impact on the balance of payment of the country. The tourism

industry in India generated about US$100 billion in 2008 and that is expected to increase to

US$275.5 billion by 2018 at a 9.4% annual growth rate.

l Preservation of National Heritage and Environment: Tourism helps in preserving several places

which are of historical importance by declaring them as heritage sites. For instance, the Taj Mahal,

the Qutab Minar, Ajanta and Ellora temples, etc. Likewise, tourism also helps in conserving the

natural habitats of many endangered species

l Developing Infrastructure: Tourism tends to encourage the development of multiple-use

infrastructure that benefits the host community, including various means of transports, health care

facilities, and sports centers, in addition to the hotels and high-end restaurants that cater to foreign

visitors. The development of infrastructure has in turn induced the development of other directly

productive activities.

l Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourism industry can

Regulatory issues

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also help in promoting peace and stability in developing country like India by providing jobs,

generating income, diversifying the economy, protecting the environment, and promoting cross-

cultural awareness. However, key challenges like adoption of regulatory frameworks, mechanisms

to reduce crime and corruption, etc, must be addressed if peace-enhancing benefits from this

industry are to be realized.

Negative Impacts

l Tourism sometimes led to the destruction of the social

fabric of a community. The more tourists coming into a place, the more the perceived risk of that

place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy

culture was at its height, Goa was a heaven for such hippies. They came in thousands and changed

the whole culture of the state leading to a rise in the use of drugs, prostitution and human trafficking.

This had a ripple effect on the country.

lIncrease Tension and Hostility: Tourism can increase tension, hostility, and suspicion between the

tourists and the local communities when there is no respect and understanding for each other's

culture and way of life. This may further lead to violence and other crimes committed against the

tourists. The recent crime committed against Russian tourist in Goa is a case in point.

lCreating a Sense of Antipathy: Tourism brought little benefit to the local community. In all-inclusive

package tours more than 80% of travellers' fee go to the airlines, hotels and other international

companies, not to local businessmen and workers. Moreover, large hotel chain restaurants often

import food to satisfy foreign visitors and rarely employ local staff for senior management positions,

preventing local farmers and workers from reaping the benefit of their presence. This has often

created a sense of antipathy towards the tourists and the government.

l Adverse Effects on Environment and Ecology: One of the most important adverse effects of

tourism on the environment is increased pressure on the carrying capacity of the ecosystem in each

tourist locality. Increased transport and construction activities led to large scale deforestation and

destabilisation of natural landforms, while increased tourist flow led to increase in solid waste

dumping as well as depletion of water and fuel resources. Flow of tourists to ecologically sensitive

areas resulted in destruction of rare and endangered species due to trampling, killing, disturbance of

breeding habitats. Noise pollution from vehicles and public address systems, water pollution,

vehicular emissions, untreated sewage, etc. also have direct effects on bio-diversity, ambient

environment and general profile of tourist spots.

Conclusion

India's size and massive natural, geographic, cultural and artistic diversity offers enormous

opportunities for the travel and tourism industry. The promotion and aggressive marketing measures

undertaken by the government is expected to aid influx of tourists. The industry would also benefit from

introduction of new forms of tourism and development of niche segments.

Medical tourism in India has gained considerable popularity in recent years. India has a major cost

advantage in this field compared with other countries. In addition to cost advantages, Indian healthcare

industry offers state-of-the art equipment, technological advancement, qualified and experienced

medical personnel and a blend of modern and traditional medicines. Thus, medical tourism has

immense potential in India.

Undesirable Social and Cultural Change:

Opportunities also exist in ecotourism, adventure tourism, and cruise tourism. Eco-tourism is

increasing in popularity, evident in the development of eco-friendly hotels and tour packages. India

holds immense potential in adventure and cruise tourism. India's greatest adventure tourism assets are

Himalayas and its mighty rivers. The peak period for adventure tourism is the �lean period� of cultural

tourism. Development of adventure tourism can make India a round-the-year tourist destination. The

cruise industry is one of the most promising industries in India. However, strong efforts need to be made

to develop this industry. Other forms of tourism such as agri- tourism, pilgrimage tourism, heritage

tourism, and MICE tourism also hold enormous potential. With increasing environment awareness and

consciousness among tourists and given efforts undertaken by the government and private players, the

travel and tourism industry is expected to record handsome growth in the coming years.

References

l

the Firm.

lwww.incredibleindia.org

lwww.dnb.co.in

lwww.trcollege.net

lwww.shodhganga.inflibnet.ac.in

Zeithaml, A Valarie; Gremler, D Dwayne; Bitner Jo Mary; Pandit Ajay. Service Marketing,�Integrating Customer Focus Across

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102


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la?k dh vkxkeh foRrh; o"kZ dh lHkh vuqekfur izkfIr;ksa vkSj O;; dk iwokZuqeku izfro"kZ laln esaa j[kk tkrk gSA bls okf"kZd foRrh; oDrO; ;k ctV dgk tkrk gSA blesa fiNys o"kZ] pkwy o"kZ ¼tc ctV is'k fd;k tkrk gS½ vkSj vkxkeh foRr o"kZ] ftls ctV o"kZ dgk tkrk gSA dk dsUnz ljadkj ds ns'k ds vanj vkSj ns'k ls ckgj ds lHkh izdkj ds

1ysu&nsu dk fooj.k jgrk gSA

ctV is'k gksus ds ckn llan ds nksuksa lnuksa esa bl ij vke cgl gksrh gSA Hkkjr dh lafpr fuf/k esa ls gkssus okys vuqekfur [kpksZ dks yksdlHkk ds lkeus vuqnku ekaxksa ds :i esa j[kk tkrk gSA lafpr fuf/k esa ls fudkyh tkus okyh lHkh jkf'k;ksa dks izfro'kZ llan }kjk foRrh; vf/kfu;e ds ek/;e ls vf/kdr fd;k tkrk gSA ctV ds dj izLrkoksa dks ,d fo/ks;d esa “kkfey fd;k tkrk gSA ftls o'kZ ds foRr vf/kfu;e ds :i esa ikfjr fd;k tkrk gSA blh izdkj jkT; ljdkjsa foRr o"kZ 'kq: gksus ls igys vius&vius fo/kkueaMyksa esa izkfIr;ksa vkSj [kpksZ ds vuqekuj is'k djrh gS rFkk [kpZ ds fy, Lohdfr Hkh mlh rjhds ls izkIr dh tkrh gSA

Xokfy;j ,oa poay laHkkx dh vFkZO;oLFkk dk fo'ys"k.k

Xokfy;j ,oa paoy laHkkx dh vFkZO;oLFkk esa cgqr ls ifjorZu gq,] mijksDr ifjorZuksa esa cktkj& ½.k] eqvkots vkSj vU; czkUM] jkT; ljdkjksa foRr ea=ky; dks tkjh fd, x, Vªstjh fcy] varjkZ"Vªh; foRrh; laLFkkvksa dks tkjh dh xbZ vfofue; fcuk C;kt okyh :i;k izfrHkwfr;ka rFkk ns'k ds ckgj ls fy, x, ½.k] vFkkZr~ fons'kksa vkSj varjkZ"Vªh; laLFkkvksa vkfn ls fy, x, ½.k 'kkfey gSA dqN pqfuank o"kkZsa ds var esa lkoZtfud ½.k vkSj vU; ns;rkvksa dh fLFkfr dk fo'ys'k.k rkfydk la[;k 6-3 esa fd;k x;k gSA vU; ns;rkvksa eas fofHkUu y?kq cpr ;kstukvksa] Hkfo"; fuf/k [kkrksa] Hkkjrh; vkS|ksfxd fodkl cSad] Hkkjrh; ;wfuV VªLV vkSj jk"Vªh;dr cSadksa dks tkjh izfrHkwfr;ksa] fo'ks"k cpr ;kstukvksa esa tek jkf'k fjtoZ dks"k rFkk tek jkf'k;ksa ds cdk;k 'kkfey gSA

rkfydk 6-3Hkkjr ljdkj ds lkoZtfud ½.k vkSj vU; nsunkfj;ka

(ekpZ ds var esa)

L=ksr & foRr foHkkx] ubZ fnYyh

2006&072007&082008&092009&102010&11en

d & lkoZtfud ½.k

1- ?kjsyw ½.k (i ls vii rd)

i cktkj & ½.k

ii vU; (fo'ks"k fc;jj ckWUM lfgr)

iii 91 fnu Vªstjh fcy

iv Vªstjh fcyksa ds cnys esa fjtoZ

cSad dks tkjh fo'ks"k izfrHkwfr;ka

v fo'ks"k ¶yksfVax vkSj vU; ½.k

vi Hkkjrh; fjtoZ cSad dks tkjh

fo'ks"k izfrHkwfr;ka

vii y?kq cprksa ij izfrHkwfr;ka

2 fons'kh ½.k

dqy lkoZtfud ½.k (1$2)

3- vU; ns;rk,a

dqy lkoZtfud ½.k rFkk vU; ns;rk,a

913061

516517

61635

5047

101818

22551

3222

202271

71546

984607

381801

1366408

1020689

619105

114375

9673

61818

23617

3596

188505

59612

1080301

478900

1559201

1141706

707965

193551

7184

0

22139

3596

202271

46124

1187830

548848

1736678

1270272

758999

277213

7184

0

21388

1867

203621

54359

1324631

656883

1981514

1406525

870836

298375

7184

0

21631

1868

206631

63215

1469740

762146

2231886

(djksM+ #i;s esa)

103


;kstuk dky esa vkS|ksfxd lajpuk esa Hkh vusd egRoiw.kZ ifjorZu gq, gSa buesa vk/kkjHkwr ,oa

iwathxt m|ksxksa dh LFkkiuk gqbZ gSaA lkoZtfud m|ksxksa esa of) gqbZ gS] m|ksxksa dk fofo/khdj.k gqvk gS rFkk m|ksxksa esa 1

mRiknu rduhd esa lq/kkj gq, gSaA

paoy laHkkx e-izdk fiNM+k laHkkx gS ftlesa vkS|ksfxd lajpuk dsk fodflr djus dh dkQh t:jr gSA e-iz-

vkS|ksfxd fodkl fuxe dh LFkkiuk dh xbZ ftldk izeq[k mn~ns'; lkoZtfud m|ksxksa dh foRrh; lgk;rk vkSj uohu

m|ksxksa dks izksRlkfgr djuk FkkA dkykUrj esa bUnkSj] tcyiqj] jhok vkSj Xokfy;j esa vkS|ksfxd dsUnz fodkl fuxe dh

LFkkiuk gqbZA bu fodkl fuxe ds nkf;Roksa ds vUrxZr e/; izns'k 'kklu }kjk iznRr dh tkus okyh fofHkUu lqfo/kkvksa

dks miyC/k djkus] la;qDr {ks= ds varxZr futh vkS|ksfxd laLFkkvksa dh lk>snkjh esa u;s m|ksxksa dh LFkkiuk] vkS|ksfxd

va'k iwath esa fgLlk vMaj jkbfVax ,ao xkjaVh iznku djus vkfn dk;Z lkSias x;sA

jkT; 'kklu us e-iz- ds leqfpr vkS|ksfxd fodkl dsUnz ?kksf"kr fd;s gSA bu fodkl dsUnzksa esa 17 fodkl dsUnz

vfLrRo esa vk pqds gSA bu fodkl dsUnzksa esa 182 cMh vkSj e/;e vkS|ksfxd bdkbZ;kaas dks 2217 gsDVs;j Hkwfe vkacfVr

dh xbZ gSA bl Hkwfe ij LFkkfir bdkbZ;ksa esa ls 725 y?kq rFkk 108 e/;e vkSj cMh bdkbZ;ksa us mRiknu 'kq: dj fn;k

gSA yxHkx 570 djksMs : dh iwath ykxr ls jkstxkj feyk gSA jkT; 'kklu us bu fodkl dsUnzksaa easa cqfu;knh lqfo/kkvksa

ds fodkl ij djhc 75 djksM : O;; fd;s gSA

cqfu;knh lajpuk ds :i esa bu dsUnzksa esa tgka fctyh] ikuh] lM+d] lpakj O;oLFkk tSlh O;oLFkk,a dh tk pqdh

gSA ogh vkokl] vLirky] cSafdx] vkokxeu ds lk/ku] iqfyl LVs'ku] Ldwy] iksLV vkWfQl tSlh lkekftd ,oa 2

lkeqnkf;d lqfo/kkvksa dk Hkh fodkl fd;k x;k gSA

Lora= Hkkjr ljdkj us lu~ 1948 esa vkS|ksfxd uhfr dh ?kks"k.kk dhA bl uhfr ds rhu vk/kkj Fks %&

1- mRiknu esa fujUrj of¼]

2- forj.k esa lekurk]

3- vkS|ksfxd fodkl esa ljdkj dk egRoiw.kZ ;ksxnkuA

bl uhfr us Hkkjr esa m|ksxks ds }kj [kksy fn;sA vkt fofHkUu iapo"khZ; ;kstukvksa ds ek/;e ls Hkkjr dk

fodkl rhoz xfr ls gqvkA Hkkjr esa lHkh izdkj ds m|ksx fodflr gks jgs gSA

fdlh Hkh jk"Vª dh vFkZO;oLFkk dks lqn< cukus ds fy, m|ksxksa dk fodkl vR;ar vko';d gSA bl vkS|ksfxd

;qx esa Hkkjr vkS|ksfxd fodkl dh vogsyuk dj dsoy df"k m|ksxksa ds lgkjs vkfFkZd izxfr ugha dj ldrk gSA :l dk

vxz.kh gksus dk dkj.k vkS|ksfxd fodkl gh gSA Xokfy;j ,oa paoy laHkkx dh vkfFkZd ,oa HkkSfrd mUufr ds fy;s

vkS|ksfxd fodkl vko';d gSA vkS|ksxhdj.k ij gh okLrfod mUufr fuHkZj jgrh gSA

m|ksx ,d ,slh fØ;k gS] ftlds vUrxZr fdlh oLrq dk fuekZ.k ;k ltu fd;k tkrk gSA lkekU;r;k ,d ns'k

dh vkS|ksfxd ljapuk dks nks Hkkxksa esa foHkkftr fd;k tk ldrk gSA

1-cgn m|ksx

2-y?kq ,oa dqVhj m|ksx

fu"d"kZ

Xokfy;j laHkkx tSls v}Z fiNMs ,oa Mkdw leL;k izHkkfor {ks= esa vkS|ksfxd ,oa uxjh; fodkl ,d

pqukSrhiw.kZ dk;Z gSA Xokfy;j laHkkx ,d df"k iz/kku vFkZO;oLFkk gS rFkk vkS|ksfxd fodkl ds fy, mfpr okrkoj.k Hkh

ugha gSA fQj Hkh bl laHkkx esa vkS|ksfxd xfrfof/k;ksa dks xfr'khyrk iznku dhA vkS|ksfxd fodkl] vkfFkZd] lkekftd

,ao vkS|ksfxd izxfr dks c<kok nsrs gSA u;s m|ksxksa ds fy, Xokfy;j ,oa paoy laHkkx esa txg dk ladV gSA rks iqjkuh

104


;wfuVksa ds leku cqfu;knh lqfo/kkvksa ds vHkko ls tw>us dh etcwjhA dgha lM+d cngky gS rks dgh lhoj pksd] dgha c<rs

vfrØe.k us jkLrk jksd j[kk gS] rks dgh ukfy;ksa vkSj ukyksa eas Hkjh xanxh dk jksukA 'kgj dh lhek esa fygktk uxjh;

fudk; Hkh VSDl rks olwyrk gS ij lqfo/kk,a nsus esa ihNs gV Tkkrk gSA ;g gky gSA Xokfy;j 'kgj esa cls izeq[k vkS|ksfxd

{ks=ksa egkjktiqjk ckjk?kkVk {ks=ksa esa y?kq vkSj e/;e m|ksx lapkfyr gSA chrs Ms<+ n'kd esa Xokfy;j esaa ft;kthjko dkWVu

feYl lfgr 40 m|ksx can gq,A buls izR;{k rkSj ij 18 gtkj yksx csjkstxkj gq, tcfd vizR;{k rkSj ij 80 gtkj

yksxksa ij vlj gqvk gSA

Xokfy;j ,oe pacy lEHkkx dh turk dks LokLF;] tu dY;k.k lqfo/kk;sa] csgrj is;ty] lM+dksa das fuekZ.k]

ukyksa o xfy;ksa dh ejEer o fodkl dks ns[ksaus ls rks ,slk yxrk gS fd geus csgrj dy vkSj vkt ns[kk gSA lEHkkxksa dh

c<+rh gqbZ tula[;k ,oa foRrh; vkS|kssfxd lajpuk dh vko';drkvksa dks /;ku esa j[krs gq;s uxjh; fodkl foHkkx dks

izfro"kZ vius vk; o O;; dk C;kSjk lek;kstu djuk gksrk gS] blesa lEHkkxksa dh leLr ewyHkwr vko';drkvksa tSls

f'k{kk] LokLF;] fctyh] ikuh] flapkbZ] oulEink lkeqnkf;d Hkouksa dk fuekZ.k] y?kq ,oe dqVhj m|kssx esa foRrh;

vk;&O;; dh eq[; Hkwfedk jgrh gSA Xokfy;j ,oe pacy laHkkx dh foRrh; vkS|kssfxd lajpuk ,oea fodkl dh

fofHkUu ;kstuk;sa vyx&vyx ftyks esa vyx&vyx gSA lcls vf/kd ;kstuk;sa ftyk XOkkfy;j f'koiqjh] xquk] fHk.M

,oea nfr;k esa gS mldk dkj.k m|kssx dh nf"V ls uxjksa ,oa dLcks dks lHkh lqfo/kkvksa ls lkSUn;hZdr djuk ,oa mldss

lkFk &lkFk fons'kh m|kssxifr;ksa dksss fofHkUu izdkj dh lqfo/kk;as nsuk Hkh ,d vkS|kssfxd fodkl dk Hkkx gSA

Xokfy;j ,oe pacy lEHkkax esa fofHkUu izdkj dh vkS|ksfxd cSad ,oe fo'o cSad ls feyus okys iSlsa dks

fofHkUu enksa esa [kpZ fd;k tk jgk gSA ftlls lEHkkax ds yksxksa dks jkstxkj fey ldsA blh ds lkFk&lkFk lEHkkax esa

fofHkUu m|kssx yxk, tk jgs gS rFkk iqjkuksa dk uohuhdj.k fd;k tk jgk gSA blh ds vfrfjDr vkS|ksfxd lajpuk dk dk;Z

tksj&'kksj ls py jgk gSA Xokfy;j laHkkx dh fofHkUu rglhyksa esa y?kq ,oea dqVhj m|kssx LFkkfir fd;s tk jgs gSA

lanHkZ xzaFk lwphldqjsZ'kh ubZe %Xokfy;j fojklr pEcy] iksLV izdk'ku Xokfy;j] o'kZ 1992

lMkW- lat; etwiwfj;k %Xokfy;j dk bfrgkl vkSj mlds n'kZuh; LFkku] lq|ks izdk'ku] Xokfy;j o"kZ1994

lvkgwtk ,p-,y- %mUur vkfFkZd fl¼kar** us'kuy ifCydasf'kax gkÅl 1988

lekstj lh-,- %losZ esFkM~l bu lks'ky bUosLVhxsV~l

llkbulslj MksukYM ,ao LVhQsUl esjh%bulkbDyksihfM;k vkWQ lks'ky lkblsUl** esd feyu dEiuh

ldksBkjh lh-vkj- %fjlpZ eSFMksykWth**t;iqj cqd fMiks] o"kZ 2000

likjlukFk jk; %vuqla/kku ifjp;**] y{ehukjk;.k vxzoky] vkxjk] o"kZ 2009

lvxzoky ,oa ik.Ms;] %lkekftd 'kks|**] vkxjk cqd LVksj] vkxjk o"kZ 1989

lMkW- vkj-,u- 'kekZ ,oa MkW- vkj- ds 'kekZ %lkekftd losZ{k.k vkSj vuqla/kku dh fof/k;k¡ vkSj izfof/k;k¡**] ,VykafVd ifCy'klZ

,.aM fMLVªhC;wVlZ] ubZ fnYyh o"kZ 2008

lfou; eksgu 'kekZ %'kks| izfof/k**] us'kuy ifCyf'kax gkml] ubZ fnYyh] o"kZ 2009

lMkW- fot; gtkjs %'kks| iz.kkyh**] ,-ch-Mh- ifCy'klZ] t;iqj] o"kZ 2007

lMkW- xq:ukFk ukMxksM %lkekftd la'kks/ku i¼fr**] QMds izdk'ku] dksYgkiqj] o"kZ 2004

lvo/kizlkn %xkWoksa eas lkekftd vkfFkZd ,oa jktuhfrd ifjorZu**] fgUn cqd fMiksa] ubZ fnYyh] o'kZ 2008

lHkVukxj uUnyky %xzkeh.k ,oa ukxfjd vFkZO;oLFkk**] jLrksxh izdk'ku] esjB] o"kZ 2007

The journal is published with the objective of providing a medium for the publication of

articles and research papers on relevant issues of Commerce and Economics by authors of

academic standing and interest. Jagran Journal invites unpublished and original work to provide

forum for exchange of ideas and techniques among academicians and practitioners to

promote pragmatic research by disseminating the results of research in dynamic business

and economic environment. The journal proposes to cover following areas in the field of Commerce

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Jagran College of Arts, Science

& Commerce, Kanpur (JC)

agran College of Arts, Science & Commerce, Kanpur is a milestone in Jagran's increasing endeavour to bring quality higher education to the city. The college was established in the year 2006 under self financing scheme of C.S.J.M. J

University and registered under secs. 2F and 12B of UGC Act 1956. Jagran College at its sprawling campus is the most modern in infrastructure with facilities of lecture theatres, auditoriums, well stocked library having national and international journals, games & sports facilities. JC is engaged in the cutting edge research and teaching that helps in understanding global challenges. The college offers various value added programmes in B.A., B.Com., B.B.A. B.C.A. & M.Com. courses. A holistic approach to education is adopted, in which emphasis on both academic training and development of social and interpersonal skills is carried out.

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JAGRAN JOURNAL OF COMMERCE AND ECONOMICS · Chairman, Delhi School of Professional Studies and Research, Delhi Formerly Professor, Head and Dean Faculty of Commerce and Business Delhi