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19
Methodology and Research Design
Profile of the Area under Study
Ghaziabad as a separate district was carved out of Meerut in 1976. It is the highly
industrialised and urbanised district located in Western U.P. that joins boundaries with
Delhi in the West, Baghpat in the North, Gautam Buddha Nagar and Bulandshahr in the
South and Meerut in the North-East. Modinagar is the biggest town in Ghaziabad district.
It is a Municipal Board (M.B.) in Ghaziabad district of Uttar Pradesh state. ‘It is 45
kilometres North-East of New Delhi and 25 kilometres South-West of Meerut. It lies in
Lat. 280 50’ North and Long. 770 35’ East, and 25 kilometres North-East of Ghaziabad
on Delhi-Massoorie National Highway (NH-58). Parallel to this road runs the Delhi-
Saharanpur section of the Northern Railway with a railway station here.’1 A metalled
road, going to Hapur originates from the town as shown on page 21.
Total geographical area of Ghaziabad district is 186.30 sq. kms. out of which
Municipal Corporation (M.C.), Ghaziabad has an area of 74.64 sq. kms. Ghaziabad
district consists of a number of towns. As per Census 20012, total population of
Ghaziabad district is 32,89,540 out of which males constitute 17,68,215 and females
constitute 15,21,325. Sex ratio of Ghaziabad district is 860. Literacy rate of Ghaziabad
district is 70.89 per cent while male literacy rate is 81.04 per cent and of females is 59.12
per cent. A map of Ghaziabad district showing different towns with their respective
location in the district has been shown on page 22.
‘Modinagar is a town having an area of 573 acres out of which 571 acres of its
area is comprised of a village Begamabad which is a much older place and is said to have
been founded by Nawab Zafar Ali and to have been named Begamabad by a lady of the
royal family of Delhi when it passed into her hands. As mentioned in table 2.1 given
below Modinagar has total population of 1,13,218 out of which males constitute 60,468
(53 per cent) and females constitute the remaining 52,750 (47 per cent). Modinagar town
has an average literacy rate of 83.15 per cent.
Modinagar is best known as the ‘Home of Modi Mills’ because of its origin. It has
been founded by Late Rai Bahadur Gujar Mal Modi in 1933. A well known colony of
Modinagar town ‘Govindpuri’ was established by Pandit Govind Ballabh Pant in 1948 for
the refugees who came from Pakistan. Later on a complex for small enterprises and
residential colonies was established by the State Government. A labour colony
20
Suchetapuri and Double Storey had also been founded by the former Chief Minister
Sucheta Kriplani in Govindpuri.’3
Table 2.1 Modinagar Municipal Board (M.B.) at a Glance in 2001
Particulars Details
Geographical Area 14 sq. kms.
Total Population 1,13,218
Male Population 60,468
Female Population 52,750
Scheduled Castes (SCs)/ Scheduled Tribes (STs) 13,175
Literacy Rate 83.15
Montasery/ Nursery School (Registered by Education Department) 1
Primary Schools (Mixed) 54
Higher Primary Schools 22
Intermediate Schools (Boys) 6
Intermediate Schools (Girls) 4
Branches of Nationalised Bank 14
Branches of Co-operative Bank 1
Co-operative Societies 1
Branches of Co-operative Agriculture and Rural Development Bank 1
Agriculture Service Centre 1
Animal Service Centre 1
Community Health Centre 1
Ayurvedic Dispensary 1
Maternity and Child Welfare Centres 4
Rationing Shops 48
Telephones 15,179
Public Call Offices 676
Post Offices 9
Telegraph Office 1
Police Station 1
Source: Handbook of Statistics 2008, Eco and Statistical Department, Ghaziabad, Government of U.P., Lucknow
21
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23
Industrial Profile
The credit for giving a status of industrial area to this town goes to Late Rai
Bahadur Gujar Mal Modi who came to this town from Patiala and established the first
industrial unit ‘a Sugar Mill’ in 1933. Later on a large number of industries were
established by the Modi Group. Various industries established by the Modi Group with
their respective years of establishment are given below in table 2.2.
Table 2.2 Industrial Units Established by the Modi Group in Modinagar
Industrial Units Year Modi Sugar Mill 1933 Modi Vanaspati 1938 Modi Soap 1940 Modi Paints 1947 Spinning and Weaving Mills 1949 Modi Gas and Modi Lantern 1950 Modi Rayons and Silk Mill 1956 Modi Yarn Mill 1957 Modi Distillery 1959 Modi Electrode 1962 Modi Steels 1963 Modipone Ltd. 1965 Modi Tyre Factory 1990 Source: Smarika 2003, Municipal Board, Modinagar
Thus, through the expansion of industrial area in Modinagar, Modi Group
provided large employment opportunities to a vast majority of workers and helped them
to earn their livelihood. But now only a few are running because of lockouts in majority
of the factories due to family feuds of Modi Group. Those which are running at present
are Modi Sugar Mill, Modi Distillary, Modi Electrode, Modi Gas and Modi Paints. Not
only Modi Group but also many private players have entered into Modinagar and
established a number of private industries which have given employment to the people
living in Modinagar. Private players through providing employment have generated extra
purchasing power in hands of the masses and also added element of competition among
the market players. Due to increased degree of competition over here, quality of goods
and services has improved. Due to rapid growth of urbanisation, new private players like
Vishal Mega Mart, Bata, Lakhani and Koutons etc. have also recorded their presence in
the field of business.
24
Educational Profile
Presently Modinagar has emerged as an educational hub for imparting
professional knowledge. It has got a remarkable recognition not only in Western U.P. but
also at national level. Late Dr. Kedar Nath Modi (son of Late Multani Mal Modi) candled
the light of higher education in Modinagar to provide professional and technical
education with the establishment of Dr. K.N. Modi Foundation. This Foundation was
established with a mission to be a nucleus of excellence in varied fields of education with
positive attitude, high values, commitment and dedication. It has a track record of
excellence in education for more than six decades. At present, this Foundation is
nurturing the future of students, enrolled with the colleges and institutes under the
supervision of Dr. D.K. Modi who is Chairman-cum-President of this Foundation. A list
of schools, colleges, management and technical institutes running under the umbrella of
Dr. K.N. Modi Foundation has been given below in table 2.3.
Table 2.3 Schools, Colleges and Professional Institutes Running under Dr. K.N.
Modi Foundation in Modinagar
Category Name of School/ College/ Management/ Technical/ Research Institutes
Year of Establishment
Schools
Dr. K.N. Modi Science and Commerce College 1942 Rukmani Modi Mahila Inter College 1950 Gayatri Devi Modi Junior High School 1969 Pramila Modi Junior High School 1981 Ginni Devi Sanskrit Vidyapeeth 1990 Dr. K.N. Modi Global School 2008
Colleges Multanimal Modi (P.G.) College 1957 Ginni Devi Modi Mahila (P.G.) College 1983
Management/ Tachnical/ Research Institutes
Ginni Modi Community Ophthalmic Research Centre
1976
Centre for Mangement Development (C.M.D.) 1983 Dr. K.N. Modi Institute of Pharmaceutical Education and Research
1990
Dr. K.N. Modi Institute of Engineering and Technology
1995
K.N.G.D. Modi Engineering College 2005 Ginni Devi Modi Institute of Education 2006 K.N.G.D. Institute of Fine Arts 2008
Source: www.kngd.org
Because Modinagar is well known for its technical, management and research
institutes, many students pass out from these institutes annually and get opportunities to
make their future bright into different areas of agriculture, industry and service sectors. In
25
spite of these institutes, some other proposed institutes of Dr. K.N. Modi Foundation are
given in the following table.
Table 2.4 Proposed Institutes of Dr. K.N. Modi Foundation
Dr. K.N. Modi University - Rajasthan
C.M.D. Global
C.M.D. International
C.M.D. Institute of Retail Management
Centre for Hotel Management and Catering Technology
K.N.G.D. Institute of Pharmaceutical Education and Research
C.M.D. Institute of Journalism and Mass Communication
C.M.D. Institute of Law Education
K.N.G.D. Institute of Nursing
Dr. K.N. Modi Girls Engineering College
Source: www.kngd.org
Religious Outlook
Modinagar is also known for its famous Laxmi Narayan Temple (also known as
Modi Mandir) located on NH-58 founded by Late Rai Bahadur Gujar Mal Modi which is
a centre of attraction for people of Modinagar as well as for surrounding area. In 19th
century, Rani Balabai Sindhiya founded a temple here which is now popular by the name
of ‘Chhatri Wala Mandir’.4 These temples have contributed a lot in the development of
spiritual and cultural values among the people. Nearby Modinagar, there is a village
known as ‘Sikri Khurd’. This village is very popular for its ‘Mahamaya Temple’. Every
year during Navratras, a fair is organised over here in which people come in lacs from
remote areas.
Medical and Health Facilities
Modinagar is rich in medical and health facilities in the form of a large number of
hospitals and clinics such as Jeevan Hospital, Govil Nursing Home, Priya Darshini
Nursing Home, Lok Priya Hospital, Sarvodaya Hospital, Arya Hospital and Research
Centre, Ginni Devi Modi Research Centre and Hospital (also known as Eye Hospital) etc.
which are providing medical and maternity services for the welfare of masses. There are a
number of dentists, gynecologists, cardiologists, nephrologists, orthopedics, eye
specialists etc. providing private services.
26
Market Structure
Initially, Modinagar market was divided into two broad categories namely upper
bazaar and lower bazaar but with the development of Modinagar town and immigration of
people from other areas into it, the market has now been extended to several directions
and new market centres have emerged as Rukmini Market, New Modi Market, Phaphrana
Road, Bhagwan Ganj Mandi, Zila Parishad Market, Gurudwara Road, Tiwra Road, Kasba
Road (also known as Tarang Road), Gandhi Market, Raj Chopla, Niwari Road,
Govindpuri Chhoti Market, Govindpuri Main Market and Sharma Market etc. If all
markets are taken together, it is estimated that there are approximately 4000 shops (as per
the record of Electricity Distribution Division, Sikri Road, Modinagar) dealing in
different types of goods (durables, semi-durables and non-durables) and services.
Shopkeepers deal with building materials, stationeries, tea stalls, vegetables and fruits,
medical stores, readymade garments, shoe stores, general stores, drapers and dry cleaners,
bakery products (confectioneries), furniture, electrical and electronic items etc.
Municipal Board (M.B.)
Modinagar town is run by Municipal Board. Presently Pandit Sudesh Sharma is
the Chairman of Municipal Board but its evolution as a town is slow and steady. On
November 21, 1945, Modinagar Town Area Committee was announced by the
administrative authority. At that time, population of Modinagar was only 4,565. Late Rai
Bahadur Gujar Mal Modi was elected as the Chairman of Modinagar Town Area
Committee and Mr. Ram Sharan and Mr. Haridatt Vaidya were elected as the members of
the Committee.
After independence, first time elections for Town Area were announced in which
Late Rai Bahadur Gujar Mal Modi was elected as the Chairman for Town Area
Committee with eight other members unanimously. At that time, population of
Modinagar was 5,265. Further in 1957, Late Rai Bahadur Gujar Mal Modi was elected as
the Chairman of Town Area Committee with ten other members through voting system
for the first time.
On August 7, 1963, Modinagar Town Area Committee was announced as Notified
Area. Mr. K.N. Modi was elected as Vice Chairman of the Notified Area. At that time,
Modinagar was divided into three wards and two members were elected from each ward.
There was an Administrative Officer, the Vice Chairman Mr. K.N. Modi and twelve other
members.
27
In 1976, after coming into existence Ghaziabad as a district, Modinagar was
announced as Municipal Board of second category on August 1, 1977. First time in
November 1988, Chairman and members of Municipal Board of Modinagar had been
elected. In the same year, first time the Government announced elections for Municipal
Board in which Mr. Ram Asre Sharma was elected as the first Chairman of Municipal
Board.’5 Mr. Ram Asre Sharma had been the Chairman of Municipal Board for fifteen
years.
Now, Municipal Board of Modinagar has passed a long period of about twenty
years. During this period, Municipal Board has played a significant role by way of
various development programmes such as building up Gandhi Stadium, Commercial
Centres, Shopping Complex in Govindpuri, shops and hotels, dharmshaalas, provision of
drainage facility, parks, railing and dividers, Leprosy Centre, provision of drinking water
supply through hand pumps and tube wells etc.
At present, Modinagar has been divided into 26 wards which have been shown
clearly in map of Modinagar Municipal Board.
Objectives of the Study
The objective of the present study is to make an honest attempt to know the socio-
economic conditions of the retail workers employed in Modinagar town. The studies
made by national commissions as well as by individual researchers do reveal that the
wages, the working conditions, the sex-wise discrimination, the long working hours, the
denial of weekly off and asking unorganised workers to work even on public holidays, are
several exploitative practices prevalent in all those areas where unorganised workers earn
their livelihood. Therefore, this is a field on which further investigation is required to
assess the living and working conditions of this class of society. The present study is an
effort to collect primary data and to findout the realities. The objectives, therefore, set
forth for the present study, are as under:
1. To highlight the plight of the majority of workers in the Indian economy who are
classified as unorganised workers.
2. To examine social and economic conditions of workers, in general, engaged in
retail trade. (secondary data based analysis)
3. To analyse gender discrimination in retail trade employment. (secondary data
based)
4. To estimate the size, composition and distribution of workers engaged in retail
trade in Modinagar town. (primary data based)
28
5. To make a comprehensive study of their socio-economic conditions.
6. To understand the recruitment system in retail sector in Modinagar town.
7. To throw light on wage system, wage determination and wage practices prevailing
in Modinagar town in retail sector.
8. To make survey of ‘other facilities being given to employees’ and to investigate if
there is social security of any form provided by the employer.
9. To study various legal provisions available and their implementation level.
10. To draw attention of non governmental organisations (NGOs) and self help groups
(SHGs) for making suitable models for the upliftment of unorganised workers.
11. To suggest measures to improve socio-economic conditions of the workers
employed in retail sector.
The recognition of the need to ensure socially acceptable conditions of work is
based on the basic principles of human dignity and human rights, which have also been
adopted as international covenants by bodies such as the International Labour
Organisation (ILO) and others concerned with human rights and development.
In India, the basic principles governing state policy as enshrined in the
Constitution, directly or implicitly, ask for ensuring socially acceptable conditions for all
workers. They have also been put in practice by passing several legislations prescribing
the principles and procedures to be followed by the enterprises into the employment of
workers. The principle that the standards should be applied to all workers is accepted but
their application by law has been confined to only the larger enterprises, or what has
come to be known as the ‘organised or formal sector’, presumably because of non-
affordability of the compliance cost by small or unorganised sector enterprises and
difficulties in implementation. In view of the fact that the conditions of work prevailing in
the unorganised sector are bound to violate some of the basic tenets of human dignity,
these assumptions need to be seriously examined for their validity and for explaining
ways of ensuring the minimum standards at workplace for all. The most important issues
which have to be focused upon are:
1. The Minimum Wages Act and impact of minimum wages on the earnings of
workers and hence on poverty.
2. Working conditions of unorganised labour including issues such as the number of
hours of work, payment of overtime, holidays, safety conditions etc.
29
3. Plight of women unorganised workers to focus public attention on the continuing
and widespread discrimination across sectors and occupations in terms of nature of job,
lower remuneration and lower work participation rate.
4. Reduction of the gap between informal and formal sectors.
5. Promotion of livelihoods of the unorganised sector workers.
6. Provision of job and social security to the workers.
7. Protection of child rights and education to children.
Thus, in the light of above facts it is important to study the life profile of
unorganised workers so that those who have been neglected by policy makers may not be
neglected by the centres of learning. This empirical study may help the social scientists to
make surveys in different parts of the country and compare the results. It may attract
NGOs as well as SHGs to make suitable models for their upliftment.
Problems to be Addressed under the Study
The present study has been conducted to find out different kind of problems faced
by the unorganised workers engaged in retail trade. So, the problems addressed by the
study are as under:
What kind of working conditions is being faced by the unorganised workers in the
area under study?
What kind of socio-economic conditions are prevailing for retail trade workers?
The nature of employer-employee relationship in Modinagar market.
Rural-urban inhabitance of the unorganised workers.
The security of job of such workers.
Examining the gender bias in unorganised sector.
To measure the extent of incidence of child labour in unorganised retail trade in
Modinagar town.
Focusing on wage differentials among male and female workers.
Factors affecting job preferences of the unorganised workers.
The other benefits being provided by the employers to the employees.
The recruitment system being followed by the employers in unorganised retail
trade sector of Modinagar town.
The chances of migration of unorganised or informal workers from unorganised
retail trade to organised retail trade.
30
To examine if the organised retail trade affects the conditions of unorganised
workers.
To evaluate if the knowledge, aptitude and implementation of legal provisions
matter for employers.
The safety nets provided by the Government to unprotected and vulnerable
sections of the society.
The effectiveness of safety nets for unorganised sector workers has been
introduced successfully.
To prescribe a scheme for the social and economical upliftment of unorganised
workers engaged in retail trade of Modinagar town.
Hypotheses to be Tested for the Study
The following hypotheses have been taken for the present study. The hypotheses
have been tested on the basis of primary data collected by an especially constructed tool
for sample survey.
1. The prevailing wage rates do not honour Minimum Wages Act, 1948.
2. The employers are habitual of violating the different legal provisions protecting
the retail trade workers.
3. Job security is the prime concern of unorganised workers.
4. Working conditions of unorganised retail trade workers are deplorable.
5. There is gender bias in unorganised retail trade employment as well as in wage
rates.
6. The incidence of child labour in unorganised retail trade sector is quite high.
7. Unorganised retail trade female workers are not pulled by the town rather they are
pushed out from their home.
Sources of Data Collection
The present study has two parts. Part one is theoretical analysis and part two is
empirical analysis. Quite often, a research work makes use of both sources: primary as
well as secondary. However, much depends upon the purpose and scope of investigation.
For any kind of research work a researcher has to decide whether he/ she will use primary
data or secondary data. The choice between the two depends mainly on nature and scope
of the study, availability of financial resources and time, and degree of accuracy desired.
It also depends upon the agency that conducts the research work whether an individual,
an institution or a government body. It has been pointed out that most researches rest
31
upon secondary data. Primary data are generally used in cases where the secondary data
do not provide an adequate basis for analysis. Sometimes the researcher has an academic
commitment and thirst for knowing the truth and wants to reach to the grass root level so
that the bare facts come to light. But in present study, both primary as well as secondary
data have been used to reach to the conclusions about socio-economic conditions of
unorganised workers engaged in retail trade of Modinagar town.
Primary Sources
For empirical purpose, primary data have been collected through especially
designed ‘Schedule’ in which responses of unorganised workers engaged in retail trade of
Modinagar town have been recorded.
Secondary Sources
For theoretical analysis, secondary data have been collected from secondary
sources. Some important journals and reports which have been very helpful in the present
study need a special mention. They are Economic and Political Weekly (EPW), The
Indian Journal of Labour Economics, Southern Economist, International Labour Review,
Nagarlok, Journal of Marketing, Social Welfare, The Indian Journal of Social Work,
Women’s Link, International Journal of Development Issues, Quaterly Journal of
Economics, Journal of Social and Political Thought, Labour File, Production and
Operations Management, Survey, Synthesis and Seminar. In addition to the journals some
articles published in leading magazines have also been reviewed. Important among them
are India Today, Business Line and Fortune. The reports of various committees and
commissions and various acts passed by the government have also been helpful in
preparing the theoretical analysis. Important among them are the First National
Commission on Labour (FNCL), the Second National Commission on Labour (SNCL)
and the National Commission for Enterprises in the Unorganised Sector (NCEUS). While
collecting secondary data, in addition to the websites such as www.nceus.gov.in,
www.labour.nic.in, www.upgov.nic.in, www.uplabour.org, www.modinagar.net,
www.ghaziabad.nic.in, www.nppmodinagar.org etc., the literature has been collected
from National Council for Applied Economic Research (N.C.A.E.R.), New Delhi, Indian
Institute of Public Administration (I.I.P.A.), New Delhi, V.V. Giri National Labour
Institute, Noida, Raja Mahendra Pratap Library, Ch. Charan Singh University, Meerut,
D.N. (P.G.) College Library, Meerut, Centre for Management Development, Modinagar,
Mewar Institute of Management, Ghaziabad, Dewan Institute of Management Studies,
Meerut and B.L.S. Institute of Management, Ghaziabad. There are some pieces of
32
information which have been procured from the offices like Electricity Distribution
Division of Power Corporation, Modinagar, Municipal Board, Modinagar and from
Collectorate Office, Ghaziabad.
Method of Data Collection for Primary Study
For the collection of primary data, sample method has been followed in which
only a part of the population (Modinagar market) has been surveyed and conclusions
about the entire population have been drawn.
Size and Composition of the Sample
As per the monthly report of Electricity Distribution Division6 (2009) of
Modinagar town, it has been noted that in Modinagar town total number of domestic
consumers is 63,817 and total commercial consumers are 6,475. As per the statement of
Executive Engineer [C] Mr. Ram Singh of Electricity Distribution Division of Modinagar
town, total number of shops is 3,887 out of total commercial connections (6,475). On the
basis of this secondary data, approximately 4000 shops have been taken as population
size for the research work of which 10 per cent shops constitute the sample size i.e. 400
shops.
Size of Population - Approximately 4000 shops
Sample Size - 10 per cent of population size i.e. 400 shops
To make the study purposeful, all the shops of Modinagar market have been
divided into four categories namely – durables, semi-durables, non-durables and services
which represent four strata of equal size and have been defined as given below:
Durables
Durable goods are tangible goods that can normally be used for many years e.g.,
television, refrigerators, washing machines and vacuum cleaners.7 In other words,
durables are repeatedly used which live for a fairly long time. These are of two kinds –
consumer durables and producer durables, e.g. car, washing machine and furniture are
consumer durables whereas machines and tools used for production purposes are
producer durables.
Semi-durables
Semi-durables are repeatedly used goods and live for a year or so. Semi-durables
may be shoes, garments, plastic goods etc. OECD8 (2007) defines a semi-durable good as
a good that differs from a non-durable good in that it can be used repeatedly or
continuously over a period longer than a year. According to Martin9 (2007), semi-durable
consumer goods are the goods used more than once with a lifetime of about a year or so
33
e.g. shoes, clothing and household linens etc. Margaret et. al.10 (2004) highlighted that in
the National Accounts, semi-durables differ from durable goods in that their expected
lifetime of use, though more than one year, is significantly shorter and their purchase
price is typically less than for durable goods.
Non-durables
Non-durable goods are tangible goods which are used only once i.e. they can not
be repeatedly used.11 Non-durables include both consumer non-durables and producer
non-durables. Cosmetics, eatables etc. are consumer non-durables whereas petrol, diesel,
fertiliser etc. are producer non-durables. Non-durable producer goods are also called
intermediate goods whereas consumer non-durables are final goods. According to
Martin12 (2007), non-durable goods are typically consumables and used only once e.g.
food, beverages and gasoline etc. According to Margaret et. al.13 (2004), in the National
Accounts, non-durable goods are defined as goods that can be used only once, while
durable goods are goods that can be used repeatedly or continuously over a period of
considerably more than one year.
Services
The term ‘service’ has very wide application and with economic development its
coverage is growing fast. It may include retail distribution, business, consultancy
services, medical and educational services, maintenance and repairs (of plants, machinery
and equipments), restaurants and hotels, beauty parlours, health clubs, dry cleaning etc.
Services are intangible, inseparable, variable and most perishable in nature e.g. airline and
banking services.14 Various researchers have defined ‘service’ in different ways.
According to American Marketing Association, services are the activities, benefits or
satisfactions which are offered for sale or provided in connection with the sale of goods.15
Philip Kotler et. al.16 (2002) defined services as any activity or benefit that one party can
offer to another that is essentially intangible and does not result in the ownership of
anything. According to Christian Gronross17 (2007), a service is an activity or series of
activities of more or less intangible nature that normally, not necessarily, take place in
interactions between the customer and service employees and/ or systems of the service
provider, which are provided as solution to customer problems.
In this study each category has been further divided into five sub-categories
(strata) and each sub-category consists of 20 shops as mentioned in table 2.5. Thus, there
are 20 sub-categories having 20 shops each thereby forming total sample size i.e. 400
shops.
34
Table 2.5 Composition of the Sample
Category Number of Shops As Percentage of Total Shops
Durables 100 25 Per cent
Inverter and Batteries 20 5 Per cent
Furniture 20 5 Per cent
Electrical Items 20 5 Per cent
Jewellers 20 5 Per cent
Kitchenware 20 5 Per cent
Semi-durables 100 25 Per cent
Book Sellers/ Stationers 20 5 Per cent
Shoe Stores 20 5 Per cent
Cloth Houses 20 5 Per cent
Readymade Garments 20 5 Per cent
General Stores 20 5 Per cent
Non-durables 100 25 Per cent
Confectioners 20 5 Per cent
Kirana Stores 20 5 Per cent
Sweet Makers/ Halwai 20 5 Per cent
Medical Stores 20 5 Per cent
Provision Stores 20 5 Per cent
Services 100 25 Per cent
Beauty Parlours 20 5 Per cent
Photostate and Lemination 20 5 Per cent
Tailors 20 5 Per cent
Mobile Galleries 20 5 Per cent
Watch Emporiums 20 5 Per cent
Total Shops (Sample Size) 400 100 Per cent
The Schedule and the Field Survey
For collecting primary data a ‘Schedule’ has been designed in Hindi which has
been administered to 400 respondents personally by the investigator herself. Illiteracy of
the majority of the respondents was the main reason for making the ‘Schedule’ in Hindi,
in which the questions were easily understandable to them. The ‘Schedule’ not the
35
‘Questionnaire’ was taken as a tool for survey as the respondents were unable to follow
the questions. The format of the Schedule has been given in Appendix II.
The ‘Schedule’ contains 17 questions. First five questions are related to the
introduction of the respondents containing the name of the employee, the distance of the
workplace from his usual place of residence, father’s details, the details of the employer,
the mode of transport he/ she takes for going to the place of work, the type of shop, the
place of birth, rural-urban inhabitance and the occupation. In these first five questions,
question number 3 deals with the occupation of father and grand father. Occupations have
been classified into six as agriculture, landless labour, family business, employed in
unorganised sector, employed in organised sector and the small family trade. In order to
know the inter-generation shift in occupation father’s and grand father’s occupations have
been noted. Question number 5 is a detailed table that provides information about each of
the family member. The purpose of this table is to understand the socio-economic profile
of the family as a whole. It throws light on the sex composition, the age composition and
the occupational composition of the family. It also provides data regarding the number of
dependents and their educational pattern. This table contains the monthly income of each
earner of the family as well as his/ her monthly job expenditure. The last column contains
monthly saving of each of the family member.
Question number 6 is aimed at professional or technical knowledge of the
employee and the seventh question deals with the wages. Since the wages are usually paid
either as time wage or piece wage, therefore, question number 7 specifically asks the
respondents whether the employee is paid in time wage or in piece wage. Question
number 8 deals with hours of work and the facilities provided to them by the employer.
Question number 9 has been intentionally made to know whether the wages are paid in
time. Question number 10 deals with the monthly expenditure of the employee. Question
number 11 is constructed to compile data for incentives provided by the employer.
Question number 12 throws light on the nature of recruitment. Question number 13 and
14 deal with working conditions. Fifteenth question ascertains the level of satisfaction
and question number 16 deals with the possibility of alternative income i.e. the transfer
earning. Seventeenth question that is the last one is a probing enquiry regarding the merits
of a good employment. It tries to ascertain the perception of the employee regarding job
security, hours of work, promotional opportunities, weekly off, adequate wages and other
facilities. The investigator has to make a rating of these merits in 1-6 scale.
36
Thus, the ‘Schedule’ is simple and elaborate. The effort is to peep into the socio-
economic conditions of the workers in unorganised retail trade in Modinagar town. But
self employed workers and street vendors have not been included under the study.
The unorganised workers that include both males and females working in 400
shops were interviewed. The markets surveyed were Rukmini Market, New Modi Market,
Gandhi Market, Tiwra Road, Gurudwara Road, Lower Bazaar, Upper Bazaar, Railway
Road, Phaphrana Road, Kasba Road (also known as Tarang Road), Zila Parishad Market,
Bhagwan Ganj Mandi, Modi Complex, Subhash Bazaar, Krishna Market, Sharma Market,
Hapur Road, Niwari Road, Raj Chopla, Govindpuri Main Market and Govindpuri Chhoti
Market.
The field work for the study was undertaken between 11:00 a.m. to 2:30 p.m. This
time was most suited for data collection because most of the shopkeepers and their
employees could give their precious time to make the field survey completed
successfully. At the time of recording responses of the employees, most of the
shopkeepers supported a lot but many of them also tried to influence their employees so
that they could not reveal the secrets of the employers or in other words, the employees
were apprehensive so that they could not present true picture of their socio-economic
conditions as well as of working conditions at the workplace. The field work was
accomplished within a period of approximately six months from March 21, 2008 to
September 12, 2008.
The Test Applied for Data Analysis
For the purpose of analysis of the observations recorded through the sample
survey of Modinagar town, a non-parametric test i.e. Chi-Square Test has been applied to
test aforementioned hypotheses, which are independent of any assumption about the
distribution of population from which a sample has been drawn, that is why called non-
parametric test. So called tests are increasingly being used on account of their distribution
free nature, easy understanding and computation, and their usage with types of
measurements that prohibit the use of parametric tests.
The Chi-Square Test (Non-Parametric Test)
The Chi-Square test is the simplest and most widely used non-parametric test. A
Greek letter ‘χ’ called ‘Chi’ represents it. The Chi-Square test statistic describes the
magnitude of discrepancy between theory and observation. The value of Chi-Square is
given by -
37
χ2 = (O-E)2/E
Where -
O = an observed frequency in a particular category
E = an expected frequency in a particular category
The calculated value of χ2 is compared with its critical (table) value at a particular
level of significance and degrees of freedom. If χ2cal > χ2
critical, then the null hypothesis is
rejected in favour of the alternative hypothesis, and it is concluded that the difference
between two sets of frequencies is significant.
Contingency Table Analysis: Chi-Square Test of Independence
The Chi-Square test of independence is used to analyse the frequencies of two
quantitative variables or attributes with multiple categories to determine whether the two
variables are independent. When observations are classified according to two qualitative
variables or attributes and arranged in a table, the display is called a ‘contingency table’,
which displays the frequencies of all possible groups of two variables. A contingency
table has been shown below. The test of independence uses contingency table format and
is also referred to as a ‘Contingency Table Analysis or Test’.
Contingency Table
Variable B Variable A Total
A1 A2 - - - Ac
B1
B2
-
-
-
Br
O11 O12 - - - O1c
O21 O22 - - - O2c
-
-
-
Or1 Or2 - - - Orc
R1
R2
-
-
-
Rr
Total C1 C2 - - - Cc N
Where -
Variables A and B = Mutually exclusive categories
Oij = Observed frequency for the cell in row i and column j
Eij = Expected frequency corresponding to an observed frequency Oij in row i and column
j
R1, R2, - - - Rr = Row totals
38
C1, C2, - - - Cc = Column totals
Grand total of rows = Grand total of columns = the sample size = N
Row Totals (The Sums of Frequencies)
R1 = O11 + O12 + - - - + O1c
R2 = O21 + O22 + - - - + O2c
-
-
-
Rr = Or1 + Or2 + - - - + Orc
Column Totals (The Sums of Frequencies)
C1 = O11 + O21 + - - - + Or1
C2 = O12 + O22 + - - - + Or2
-
-
-
Cc = O1c + O2c + - - - + Orc
Calculation of Expected Frequency (Eij)
Row i Total × Column j Total Eij = ----------------------------------------
Sample Size
Ri × Cj = ---------------
N The general steps to conduct a test of independence to test the association between
two independent variables are summarised as follows:
State null (Ho) and alternative (H1) hypotheses:
Ho : No relationship or association exists between two variables, i.e., they are
independent.
H1 : A relationship exists, i.e., they are related.
Select a random sample and record the observed frequencies (O - values) in each
cell of the contingency table and calculate the row, column and grand totals.
Calculate the expected frequencies (E - values) for each cell.
Compute the value of χ2.
Calculate the degrees of freedom by the following formula:
39
d.f. = (Number of Rows - 1) (Number of Columns - 1) = (r - 1) (c - 1)
Using a level of significance (α) and d.f., find the critical (or table) value of χ2α.
This value of χ2α corresponds to an area in the right tail of the distribution.
Compare the calculated and table values of χ2. Decide whether the variables are
independent or not, using the decision rule:
Accept Ho if χ2cal < table value χ2
α, (r – 1) (c - 1).
Otherwise reject Ho and accept H1.
In addition to the Chi-Square test, averages, percentages, bar diagrams, pie
diagrams and graphical representation have been taken as the tools for drawing correct
conclusions. Sometimes, the varification has been made on the basis of simple frequency
tables. However, every effort has been made to minimise the element of error in
conducting survey as well as in statistical analysis so that the conclusions drawn are
closer to realities and useful for policy formulation. Yet, the respondents being private
employees, poor in education and directly under the influence of the employer so they are
highly vulnerable so far as data collection is concerned. Therefore, the probability of
some degree of unbiased error is not ruled out.
40
References
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Municipal Board, Modinagar, p 27 4. Ibid. 5. Ibid., p 29-31 6. Electricity Distribution Division, (2009), ‘Category-wise Position of Number of
Consumers, Connected Load, Units Sold, Assessment, Realisation and Arrears As
Per CS-3/ CS-4 Statement’, Modinagar, April 7. Kotler, Philip, (2004), ‘Marketing Management’, Pearson Education Pte. Ltd.,
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