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Primax International Journal ofCommerce And Management Research

(PIJCMR)

Primax International Journal of Commerce and Management ResearchNo.25/A, Boothappa Temple Road, 80 Feet Ring Road, Jnanabharathi Post,

Nagadevanahalli, Bangalore -56, Karnataka, India. Ph: 08971725451Email: [email protected], [email protected]

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• Research Papers • Articles • Case studies

“Move fast and Break things”Any think will get… within minutes….

(2016 Technology…)

“Innovative Strategies in Commerce”

Online ISSN: 2321-3612Primax International Journal of Commerce and Management Research

Page IIJanuary 2016Special Issue

Managing Editor:Prof. T. Rajeswari., M.Sc.,M.A(Eng).,M.B.A.,M.A.(Soc)., (Ph.D)

Coordinator:Dr. V. SelvarajHead & Associate Professor,Nehru Memorial College (Autonomous),Tiruchirappalli.

Dr.K.V. RamanathanProfessor of Finance & Research Advisor,Padmashree Insitute of Management and |Science, Bangalore.

Dr. M. Muthu GopalakrishnanAssociate Professor,Acharya Bangalore B School, Bangalore.

Publisher:Primax Commerce and Management Research Academy, Bangalore-60(Karnataka Reg.: 48/159/CE/0103/2013)

Issue:Special Issue, January 2016

COPYRIGHT:1. All rights reserved. And Copyright ? 2013, Primax Commerce and Management Research

Academy.2. Reproduction of any part of this Journal in the whole or in part without written permission from the

publisher is prohibited3. All rights reserved ISSN: 2348-0475

Contact:Prof. T. Rajeswari., M.B.A.,M.A(Eng.).,M.Sc.,M.A(Soc)., (Ph.D)

Founder and Managing Editor,No.25/A, Nagadevanahalli, Boothappa Temple Road80 Feet Ring Road, Jnanabharathi Post,Bangalore -56, Karnataka, India. Ph: 08971725451Email: [email protected], [email protected],

Primax International Journal of Commerce and Management Research Print ISSN: 2321-3604

Page IIIJanuary 2016Special Issue

Editor Desk

Prof. T. Rajeswari., M.Sc.,M.A(Eng).,M.B.A.,M.A.(Soc)., (Ph.D)

Managing Editor- PIJCMR.

“Truth i“The secret of life is not enjoyment, but education through experience”. AndExperience is the only source of knowledge.

- Swami Vivekananda.

Dear AllGreetings to one and all…….

Dear Reader it is a matter of great satisfaction and pride to place the third issue of PRIMAX InternationalJournal of Finance.

The recent annual survey of education report (ASER) reflected that the standard of education at alllevels declining faster in our county. Management programmes are not exception. As there is mismatchbetween present standard and required standard industrialist are jittery to gainfully employed the newbreeds.

Since the changing dynamics of the business environment is moving at faster pace industrialistaspire for faster results hence they are locating for people who are passionate hardworking andcommitted to deliver the results.

I personally feel a good innovative inspiring article of you is not just a service; it is a philosophy and Icommitted to uphold this.

I bank on your innovative path breaking articles which sets new standards in management or discipleof your specialty. This definitely will equip the present and future generations to face the reality ofbusiness climate of globalization.

Through this, space I wish to reiterate ‘let us strive for successes to explore new horizons and keepup our head high’.

“The future is not something we wait; it is something we should create. The pure taste of successcan only be felt with a spoon of failure”.

I once again thank all my colleagues, well-wishers, friends and above all God almighty who stood byme from concept to commissioning of this journal.

I wish all of our readers and stake holders a happy new year 2016.

Wish you all a grand success!


Page IVJanuary 2016Special Issue

“All men can see the tactics whereby I conquer, but what none can see in theStrategy out of which victory is evolved”

- Sun Tzu

I am happy to learn that the PG & Research Department of Commerce is organizing an InternationalConference sponsored by ICSSR on “Innovative Strategy in Commerce”. The theme chosen for theconference is very significant as innovation is the key to visualize the gaps and create convincingstrategy maps with positive experience. I wish this conference will look into the different dimensionsof innovative strategies in commerce.

The actions required to create new ideas, processes or products which when implemented lead topositive effective change. True innovation is far more than an extension of what is done normally, andwhile being different, uses capabilities that exist in a company or are augmented by strategic alliances.Therefore, something is an innovation not simply because it is new to that company, but because it issimply new.In general, companies are at the center of innovation. It is through them that technologies,inventions, products, finally, ideas come to the market..

The theme around innovation is complex. It also allows interpretations and adaptations. Innovateinvolves a series of technological, market and management expertise’s.

Successful innovation is critical to addressing future challenges that will ensure the continued socialand economic growth of the state.

It is certainly heartening to note that this International Conference has attracted academicians, researchscholars, students and industry experts from almost every corner of the country. I also congratulatethe HOD, staff members and students for their efforts in organizing and participating in this conferenceand wish the conference all the success.

God Bless You…

MESSAGE

Rev. Mother. Jayarani, FBSSecretary

Bon Secours College for WomenThanjavur.


Page VJanuary 2016Special Issue

"Success will never its standards to accommodate someone.One has to raise one's standard to achieve it"

I am delighted to say that the PG& Research Department of Commerce is conducting an Interna-tional Conference on "Innovative strategy in Commerce" sponsored by ICSSR. This kind of confer-ence will improve the standard of learners and research scholars.

In today’s fast-changing business environment, those firms that want to remain competitive mustalso be innovative. Innovation is not simply developing new technologies into new products or ser-vices, but in many cases finding new models for doing business in the face of change. It often entailschanging the rules of the game. The dominant themes in the strategy literature have been strategicinnovation, the impact of information and communications technologies on commerce, and global-ization. The primary issues have been and continue to be how to gain a competitive advantage throughstrategic innovation using new game strategies, and how to compete in a world with rapid technologi-cal change and increasing globalization.

Strategy is the science or art of planning and directing large military movements and operations. Thestrategies change according to the changing situation. Change in the organization structure can leadto many strategic changes across the organization and these need to be handled in a perfect man-ner. The purpose of this conference is to bring together researcher, experts from academia and otherinterest organizations to meet, exchange information and idea in developments in the field of com-merce. It brings together the newest developments in new energy related techniques and academicresearch results. This conference has been designed to provide ample opportunities to researchersto network and to share ideas and information about the innovation strategies in business.

Innovation has the ability to add value to company’s products, differentiating it, even momentarily, inthe competitive environment. Innovation is even more important in markets with plenty of commodi-ties, such as the ones presenting a high level of competition and whose products are roughly equiva-lent between competitors. Those who innovate in this context, either doing incremental or radical,product, process or business model innovations, are at an advantage over the others

The success of these events requires the initiative and dedication of active members. I congratulatethe PG & Research Department of Commerce organizing the International Conference and wish theprogramme a grand success.

I wish the conference a fabulous success.

God Bless You…

MESSAGE

Dr.Sr.D. Victoriya, FBSPrincipal

Bon Secours College for WomenThanjavur.


Page VIJanuary 2016Special Issue

ContentsSl.No.

1

23

4

5

6

78

9

10

11

12

1314

15

16

17

18

Title of the Articles Page No.

1 - 11

12 - 1415 - 19

20 - 22

23 - 28

29 - 33

34 - 4041 - 42

43 - 48

49 - 51

52 - 59

60 - 62

63 - 6667 - 77

78 - 80

81 - 84

85 - 86

87 - 90

What Makes the Sustainable Cooperative Business for Social Transformationin Ethiopia? An Empirical Assessment - Dr. R. Dayanandan

Ethics in Information Technology - B. Asha

A Study on Association Between Intellectual Capital and CorporatePerformance of Listed Fertilizer Companies in India: A Multivariate Approach

- Mr. P. Arun Prakash, Dr. K. Senthil Kumar

A Study on Consumer Behaviour Towards Postal Investment Schemes inThanjavur Town - B. Sudha

A Study on Factors of Promotion in Online Marketing - Dr. A. Kanmani Joan of Arch

A Study on Brand Preference Towards Masala Products With SpecialReference to Thanjavur City - K. Saranya Rani

Corporate Governance Mechanisms in India - B. Menaka & R. Ganapathi

A Study on Labor Force Planning in Plasto Metalcast Engineering Industries,Thiruverumbur. - P. Priya

Buyers’ Behaviour for Passenger Cars in Tamilnadu With Reference toThanjavur District - Dr. N. Santhoshkumar

A Study on Customer Relationship Management in E-marketing - K. Nithya Devi & Dr. R. Sathru Sangaravelsamy

A Study on Consumer’s Purchase and Satisfaction of Commodities ThroughFair Price Shops (FPS) in Madurai District - B.Menaka & R.Ganapathi

A Study on Consumer Behaviour on Utilization of ATM Services in Thanjavur - S. Meenakshi

The Companies Act 2013 - Changing India INC… - K. Maruthadurai

Foreign Direct Investment in Defence Sector in India: Challenges andOpportunities - Dr. M. Kesavan

An Opinion Study on Passengers Satisfaction on CRC Bus Transport Limited,Kumbakonam - Ms.S. Dhanalakshmi & Mrs. U. Priya

A Study on the Quality of Work Life of Employees at the Dalmiacement(Bharat) Ltd., - Sr. Mary Christina

A Study on Consumer Satisfaction Towards Education Loan in ThanjavurTown - S. Maheswari

International Marketing of Petroleum Products (India) - Mrs. D. Vengateswari & Dr. S. Mohan


Page VIIJanuary 2016Special Issue

Sl.No. Title of the Articles Page No.

A Study on the Women Consumers’ Attitude Towards Face Cream with SpecialReference to Thanjavur Town - P. Amalorpavamary & Dr.V. Sathursangarvellsamy

A Study on Impact of Advertisement in Thanjavur - K. Kalaiselvi

A Study on Job Satisfaction Among the Employees of Canara Bank - V. Mahalakshmi & Dr. N. Arumugam

A Study on Organisational Reengineering A New Culture Implementation inWorking Environment - K. Saranya

A Study on Consumer Satisfaction with Special Reference to Samsung Mobilein Thanjavur Town - S.Gayathri

Impact of Effective Advertisement among Cosmetic Products in ThanjavurTown - K. Punitha Devi

Impact of Internet Advertising with Special Reference to Thanjavur Town - B. Abirami

Corporate Governance and Business Ethics - S. Karthika

Stress Management of Employees at BHEL, Thiruchirapalli - R. Prakash

Stress Management Programmeson the Perception of the Employees inBHEL Trichirapalli - R.Shanthi

A Study on Gap Analysis in Hotels at Thanjavur - H.P Keerthana Joshi

A Study on Receivable Management of Selected Indian Steel Industry - A.N. Christy & S. Suganya

A Study on Effects of Stress on Organizational Productivity at Aringar AnnaSugar Mill, Kurungulam - R. Gayathri

Studying The Financial Performance of Stock Through Trading, Investmentand Mutual Fund - Dr.K. Kalaichelvi & J. Elanchezhian

A Study on Employee Branding with Special Reference at Chennai - M.Keerthana

19

2021

22

23

24

25

262728

2930

31

32

33

91 - 94

95 - 97

98 - 100

101 - 105

106 - 108

109 - 112

113 - 116

117 - 119

120 - 122123 - 129

130 - 132133 - 139

140 - 143

144 - 147

148 - 151

Page 1January 2016Special issue


WHAT MAKES THE SUSTAINABLE COOPERATIVE BUSINESS FORSOCIAL TRANSFORMATION IN ETHIOPIA?

AN EMPIRICAL ASSESSMENT

1. Associate Professor, College of Business & Economics, Hawassa University, Hawassa, SNNPR, Ethiopia.

Abstract

Cooperative business can be regarded as a strategy for disfavored members of society, occasionally encouraged byprivate or institutional benefactors to pool their strength in order to liberate them from material, social and politicaldependence by collective action. However, the performance and sustainability of consumer cooperatives in the studyarea (Hawassa), have been debatable, since the cooperatives becoming dormant is increasing over time and alimited knowledge of the people towards the aim of establishing such cooperatives for social transformation. Hence,this paper focuses on assessing the role of cooperatives in transforming the socio-economic status of members andidentifying the factors determining their sustainability so as to transform the society. To address the objectives, therequired data was collected from 183 members of five consumer cooperatives identified using systematic randomsampling technique. Both qualitative and quantitative methods were used to elicit the information. The primary datawas collected through questionnaire and key informant interview. Descriptive statistics such as: mean, frequencies,percentages, standard deviation and inferential statistics such as one sample t test, Chi-square analysis and orderedlogistic regression analysis were carried out to arrive the meaningful results. Qualitative data collected through keyinformants’ interview was supplemented to triangulate the quantitative findings. The survey results revealed thatsample consumer cooperatives are playing partial role in fulfilling the expected services of the members. They don’tadequate business planning and feasibility study when starting business. Furthermore, lack of managerial skillamong board of directors, lack of government encouraging policy and absence of link between different types ofcooperatives, poor dissemination of market information, limited marketing innovation and absence of healthycompetitive market between consumer cooperatives and private trades, absence of safe and quality consumergoods, are problems identified in the sample cooperatives. The regression result shows that different factors such ascorruption, capital shortage, lack of managerial skill, goods delivery, weak marketing plan, poor record keeping, lackof sociability and connection among members are affecting sustainability of consumer cooperatives. Therefore, it isrecommended that members, directors, managers and other stakeholders must take action for sustainability ofcooperatives to facilitate the social transformation.

Key Words: Consumer Cooperatives; Social Transformation; Sustainability

Dr. R.Dayanandan1

Background and RationaleWhen people carry out their economic activitiesindividually, benefits dissipate and costs accumulate.The economic impact becomes insignificant and resultsin costs overrun (Destahun, 2007). Through cooperativebusiness, individual households and communities cancreate opportunities for themselves, find a productive workthat not only facilitate their wellbeing and stability butalso give them the support they need to improve theirlives and remain active in civil rights and political arenas(Taimini, 2001 cited in Tewoldemedihn, 2010). About onebillion people in the world are involved in cooperatives,either as members or customers, as employees orparticipants or both. The world’s largest co-operativeenterprises have collective revenues of USD 1.6 trillion,which are comparable to the GDP of the world’s ninthlargest economy – Spain (ILO and ICA, 2015).

As value-based and principle driven organizations,cooperative enterprises are by nature a sustainable andparticipatory form of business. Cooperatives fosterdemocratic knowledge and practices and socialinclusion, making them well-placed to their sustainabilityand have also shown resilience in the face of theeconomic crises. Hence, cooperatives must well-placedto ensure their sustainability in line with economic, socialand environmental objectives. Because they areenterprises that endeavor to meet the socio-cultural andeconomic progress of members (ILO and ICA, 2015).However, the challenges that cooperatives face in theirdevelopment is immense (Spielman, 2008).Ethiopia (Horn of Africa) is one of the fast developingcountries in the world and facing plenty of problems toovercome the poverty situation.One of the mostchallenging tasks facing the government is to hold the

Page 2

Online ISSN: 2321-3612

January 2016Special issue

Primax International Journal of Commerce and Management Research

price-line. Of the various measures, the development ofthe consumer cooperatives has by far attracted thegreatest attention and they are recognized as animportant instrument for socioeconomic improvement ofthe community. Consumer cooperatives can be regardedas a strategy for disfavored members of society,occasionally encouraged by private or institutionalbenefactors to pool their strength in order to liberatethemselves from material, social and politicaldependence by collective action (Brazdaand Robert,2011).Consumer cooperatives are expected to provide efficientand effective services to the members in terms of fairprices, high quality products and reliable services.Regardless, consumer cooperatives at some stage oftheir development face a change in market, governanceand leadership, outside support or members’ support,needs and priorities (Dorward, 2008; Das & Palai, 2006;M. Fulton, 2001; Cook, 1994). Sustainability is amassive challenge for the majority of consumercooperatives.In the study area, out of 266 cooperatives establishedduring 2004 - 2015, 92 are consumer cooperatives.However, the performance and sustainability of consumercooperatives in study area are debatable, since someof them becoming dormant due to the limited knowledgeof the people towards the aim of establishing suchcooperatives and other reasons (Hawassa CooperativeBureau, 2015). Hence this paper focuses on investigatingthe essentials of sustainable cooperative business andthe factors affecting its sustainability in Hawassa city ofEthiopia.

Objective of the PaperThe overall objective of this paper is to dig out theessentials of sustainable cooperative business and thefactors determining the sustainability of consumercooperatives in Hawassa city. In line with this thespecific objectives are:1. To examine the socio economic benefits accrued by

the members from the consumer cooperatives in thestudy area

2. To understand the essentials and constraintsassociated with best marketing practices of consumercooperatives

3. To identify the factors determining the sustainabilityof consumer cooperatives in the study area.

Methodology AdoptedA mixture of qualitative and quantitative research designwas chosen for this research due to its exploratorypurpose (Marshall & Rossman, 1999). Qualitative

research as defined by Ritchie & Lewis (2003) is a‘naturalistic, interpretive approach concerned withunderstanding the meanings which people attach tophenomena (actions, decisions, beliefs, and values)within their social world’. The research was carried outin Hawassa city of Ethiopia, situated on the shores ofLake Hawassa in the Great Rift Valley. Majority ofhouseholds in the study area is engaged in subsistencerain-fed agriculture and livestock rearing. To address theobjectives, both primary and secondary data were used.Primary data was collected from sample members ofconsumer cooperatives through pre-tested questionnaire.Qualitative data was collected using five point Likert’sscale.Multistage sampling procedure was adopted to selectthe study area, cooperatives and the respondents. Atthe first stage, Southern Nations and Nationalities ofPeople’s Regional State was selected purposively sinceit is one of the four largest regions in Ethiopia (IFAD,2008). In the se cond stage, Hawassa city was selectedpurposively due to the existence of large number ofconsumer cooperatives and considering their marketenvironment, accessibility, presences of both successfuland unsuccessful cooperatives. In the third stage, outof 92 registered consumer cooperatives in the study area,five cooperatives are selected purposely which areestablished before six years. In the fourth stage, out of1723 members registered in the selected fivecooperatives 183 sample was arrived scientifically by

using Yamane (1967) formula (n N1+N (P)2= ). For the

selection of sample members from the selected

cooperatives, proportionate [ nk = n + NK N ] sampling

technique was adopted. Finally the sample memberswere identified through systematic random samplingtechnique. In addition, key informants interview alsoconducted to elicit the relevant information.The collected data was analyzed using StatisticalPackage for Social Sciences (version 21). Descriptivestatistics such as percentages, frequencies, mean,standard deviation were used for analysis. Furthermore,inferential statistics such as one sample-t test, Chi-square test and Ordered Logistic Regression were alsoapplied. To identify the factors determining thesustainability of consumer cooperatives, OrderedLogistic Regression Model was used. According toGreene (2008) and Liao (1994) the functional form of

ordered logit model is. yX=Σκ =1βκ χκ +ε (1)κ

The Dependent Variable for this study is sustainabilityof consumer cooperatives. Rankin and Russell (2007)defined a sustainable cooperative as one which is



Source: Computed from Survey Data, 2015

Note: ns = not significant

The outcome results indicate that only three members were able to increased their annual income from Birr 500-1500 to Birr 1501-3000. Furthermore, the results of paired sample t-test (t-value = 1.94, p>0.05) revealed thatthere is no evidence to say that members have increased their annual income after joining the consumer cooperatives.Benefits accrued from consumer cooperatives have been considered as the major variables for the success ofcooperatives. Hence apart from income change, other services supposed to be provided by the consumer cooperativesare forwarded among the sample members and their responses were collected through five point Likert’s scale andresults are arrived through statistical treatment for meaningful results (Table : 2)

‘economically successful and hence able to compete with other cooperatives and the private sector’. Even though,sustainability is a long term success, a report (www.Cooperative Grocer.Com, 2009) indicated that cooperativeprinciples and values are the starting point and the foundation for cooperative sustainability. The study by ICA (2013)revealed that sustainability of cooperatives manifested by their principles. For the purpose of this study, the sevencooperative principles were used as a proxy to measure sustainability of consumer cooperatives. Seven questionswere raised and the answers were collected through five point Likert’ scale and summarized as one variable(sustainability status). Finally, the dependent variable categorized based on Nkhoma (2011) classifications as“Dormant”, “Need Attention” and “Active”.Fourteen variables such as; Motivation among Members; Democratic Participation; Managerial Skill; Working Capital;Existence of Corruption; Business Plan; Storing Facilities; Share Capital; Sociability and Connection among Members;Duration of Cooperative Membership; Marketing Plan; Government Policy; Goods Delivery; Market Information areincluded as explanatory variables.

Results And DiscussionSocio Economic Benefit of Consumer CooperativesSocio-economic benefits of consumer cooperatives are those benefits expected to fulfill members’ socio-economicdemand. According to USDA’s Cooperative Information Report (2014), benefits of cooperatives to the communityand even to members are difficult to measure. Some benefits are intangible or indirect, such as cooperatives’ effecton market price levels, quality, quantity, and service. Others are tangible or direct as in the case of net margins orsavings or annual income. Thus, cooperatives have direct and indirect benefits to the members and most of thesebenefits are evaluated in economic terms. Therefore in this research, member respondents were asked about theirannual income before and after joining the cooperatives. The data obtained were analysed using paired t test to seethe significant difference and the results are presented in table 1.

Table 1: Change of Income Before and After Membership

After Membership

500-1500

1501-3000

3001-4500

4501-6000

Total

t-test

p-value

500-1500

104

03

-

-

107

1.94

.052ns

1501-3000

-

67

-

-

67

Before Membership

3001-4500

-

-

05

-

05

4501-6000

-

-

-

04

04

Total

104

70

05

04

183

Page 4




Table - 2 : Socio Economic Benefits of Consumer Cooperatives

Variables

Got safe andquality fooditems

Got profitsreturned tomembers

Minimizedhigh cost ofconsumergoods

Got jobopportunity

Sociabilityamongmembersbecomeincreased

Makes thingssimple, cheapand unbureaucraticstructure

Focusing onmemberneeds

Item

Strongly disagreeDisagreeNeutralAgreeStrongly agreeTotal







Frequency

5457142434

183

11717091525

183

0539-

4990

183

14713--

23183

6947421015

183

541366932

183

556313556

183

t-test

-3.622***

-9.150***

18.892***

-14.533***

-8.67***

5.498***

4.670***

%

29.531.17.7

13.118.6

100.0

63.99.34.98.2

13.7100.0

2.721.3

-26.849.2

100.0

80.37.1--

12.6100.0

37.725.723.05.58.1

100.0

2.722.419.737.717.5

100.0

2.730.616.919.130.6

100.0

Mean

2.60

1.98

4.22

1.57

2.21

3.45

3.44

SD

1.490

1.503

.876

1.328

1.24

1.103

1.282

p-value

.000

.000

.000

.000

.000

.000

.000

Rank

4

6

1

7

5

2

3

Test Value=3



Got training

Strongly disagreeDisagreeTotal

DisagreeTotal

16914

183

14183

92.37.7

100.0

7.7100.0

1.23 .800-29.954***

.000 8

Source: Computed from Survey Data, 2015

Note: SD= Standard Deviation, t= t-value of the item, *** Significant at 0.1% level

As shown in table 2 results, out of eight statements forwarded related to the benefits, the respondents werepositively responded for only three statements. They are

i. Minimization of the cost of consumer goods (mean = 4.22, t = 18.892);ii. Makes things simple, cheap and unbureaucratic way (mean = 3.5, t = 5.498); andiii. Focusing on consumer needs (mean = 3.44, t = 4.670) which indicate that the sample cooperatives are successful

in providing services in these three aspects.

However in other areas of services such asi. Supplying safe and quality products (mean = 2.66, t = -3.622);ii. Sociability among members (mean = 2.21, t = -8.67);iii. Sharing the profit among the members (mean = 1.98, t = -9.150);iv. Sreating job opportunities (mean = 1.47, t = -14.533);v. Offering training to the members (mean = 1.23, t = -29.954); the sample cooperatives couldn’t fulfill the expectation

of the members.

All are significant at 1% level which proofed scientifically. Thus it can be concluded that the sample cooperativesare playing the role partially in fulfilling the expected services of the members.

Constraints Associated with Marketing Activities of Consumer CooperativesIt is found from the survey, the sample cooperatives are not playing the role in satisfying the members as observedfrom the above discussion. Hence it is imperative to assess the constraints faced by such cooperatives so thatmeaningful policy implication can be forwarded to improve the performance of cooperatives for enhancing theirservices so as to achieve their sustainability. A study by Reardon and Barrett (2000) found that problems of consumercooperatives all over the world was unable to provide marketing activities to their members: conducting marketingsurveys, streamlining quality control enforcement, inspection, and improvement in grading and standardization,organizing regulated markets’ activities, storing and selling products, processing produce into products, transportingproduce and providing higher bargaining power. Consumer cooperatives have not been successful in promotingimproved market opportunity for its members in terms of improved income (Shambel, 2012). With this background,constraints associated with marketing activities of sample cooperatives in the study area were collected from theview point of respondents through five point Likert’s scale for eleven important statements and analysed throughdifferent tools; mean, standard deviation, t-test to arrive the scientific results. Also the constrains are ranked accordingto their intensity and presented in Table 3.It is found from the survey results that poor location of the cooperatives is a major constraints reported by majority(72.1%) of the respondents. That means it is not accessible to the customers so as to reach easily. The mean value(3.88) and t value (9.747) which is significant at 0.1% level support the argument. The second most importantproblem identified by the respondents is not delivery of good promptly which loose the confident of the customers(mean = 3.77, t = 7.667) (Table : 3)

Page 6




Table - 3 : Constraints Associated with Marketing Activities of Consumer Cooperatives

SD

1.44

1.357

1.249

1.30

1.132

-.912

1.359

Variables

PoorDisseminationof MarketInformation

WeakMarketingPlan

LimitedMarketingInnovation

Lack ofStoring Facility

Lack ofAppropriateSolution forMarketingProblems

Buys Goodsat High Price

Goods areNot Deliveredon the RightTime

Item

StronglyDisagreeNeutralAgreeStronglyTotal






Strongly disagreeDisagreeNeutralAgree stronglyStronglyTotal

Frequency

2919324261

183

7844309

22183

1435197342

183

1837404444

183

1024644540

183

419928105

183

10435

4679

183

t-test

4.45***

-8.010***

5.565***

3.29**

5.290***

-13.051***

7.667***

%

15.810.417.523.033.3100

42.624.016.44.9

12.0100

7.719.110.439.923.0100

9.820.321.924.024.0

0

5.513.135.024.621.9100

22.454.115.35.52.7100

5.523.52.7

25.143.2100

Mean

3.48

2.20

3.51

3.32

3.44

2.12

3.77

p-value

.000

.000

.000

.001

.000

.000

.000

Rank

3

10

5

8

7

11

2

Test Value=3



Source: Computed from Survey Data, 2015Note: %= Percentage, SD= Standard Deviation, t= t-value of the item, p-value-which measure statistical significance, *** Significantat 0.1% level

The other constraints identified in the orderly forms arei. Poor dissemination of market information;ii. Leaders serving their personal interests;iii. Limited marketing innovation;iv. Sales personnel have not good attitude towards customers;v. Lack of appropriate solution for marketing problems;vi. Lack of storing facility; (ix) Lack of healthy competitive market;vii. Weak marketing plan andviii.Cooperatives buys goods at high price etc.

Therefore, it can be concluded that sample cooperatives have good marketing plan but have poor dissemination ofmarket information. Simret (2012) found that lack of market information in the study area is found to be problems forprimary cooperatives. Also cooperatives failed to meet their objective to solve market failure by providing andcoordinating goods. They buys goods at high price, goods are not delivered on the right time and poor location orbusiness site were other problems. In addition, respondents agreed that cooperative leaders serving their personalinterests rather than members and community. Bewketu (2013) and Shambel (2012) found that leaders embezzlementcaused by leadership ineffectiveness. Finally, the top ranks shows that, poor location of business site and on timedelivery of consumer goods are found to be the most significant problems.

LeadersServing theirPersonalInterests

Poor Locationor BusinessSite

SalesPersonnelhave notgood attitudetowardscustomers

Lack ofHealthyCompetitiveMarket





325

414461

183

536105775

183

10575

6150

183

335

13249

183

17.52.7

22.424.033.3100

2.719.75.5

31.141.0100

5.531.12.7

33.327.3100

18.02.7

72.12.24.9100

3.53

3.88

3.46

2.73

1.425

1.221

1.325

.949

5.032***

9.747***

4.687***

-3.817***

.000

.000

.000

.000

4

1

6

9

Page 8




Table - 4 : Results of Ordered Logistic Regression Model

Variables

Conduct Feasibility Study

Corruption

Capital Shortage

Membership Duration

Lack of Managerial Skill

Leaders are Elected byMembers

Goods Delivery

Member Motivation

Amount of Share

Weak Marketing Plan

Evaluating theManagement

Poor Record Keeping

Training

Sociability amongMembers

B

.018

-.910**

-1.912**

.330

-1.175**

.632

1.378**

1.216**

.229

1.575***

.234

-1.467**

.234

.845**

S.E

.359

.288

.736

.476

.354

.344

.478

.406

.359

.376

.412

.430

.320

.298

P-Value

.959

.002

.009

.489

.001

.066

.004

.003

.524

.000

.570

.001

.465

.005

Wald

.003

9.972

6.742

.480

11.043

3.383

8.304

8.961

.407

17.557

.323

11.628

.534

8.053

OddsRatio

1.02

0.43

0.15

1.39

0.31

1.88

3.97

3.37

1.26

0.21

1.26

0.23

1.26

2.33

Factors Determining the Sustainability of Consumer CooperativesSustainability is important to make sure that we have and will continue to have. Generally many factors may inhabitor accelerated the sustainability of consumer cooperatives in the study area. Fourteen such factors were identifiedand categorized under three namely internal, socioeconomic and external factors by reviewing different literatures.Such factors were assessed using statistical tools such as t-test and chi-square, to check the association betweendependent and independent variables in order to select important variables for the orderly logistic regression modeland for descriptive discussion. Finally major influential factors that are significant (<0.05) by chi-square were consideredfor regression analysis.

Logistic Regression Model Results: In order to examine the relative importance or net effect of each independentvariable, multivariate analysis in the form of ordered logistic regression was carried out. Before conducting logisticregression, multicollinearity problem was checked and found to be not problematic. A standard error larger than 2.0indicates numerical problems (https:// courses.utexas.edu), in this study, the dependent variable is sustainabilitystatus has three categories that are Dormant, Needs Attention and Active.

Source: Computed from Survey Data, 2015Note: B=Binary logit coefficient, S.E=Standard Error, ***Significant at 0.1% level, **Significant at 1% level

Among fourteen variables entered in the model, eight of them were found to be significant at different probabilitylevels. The remaining was found to be insignificant even if it was depicted bivariate analysis. The following paragraphsdescribe eight significant variables.

Discussion on the Significant VariablesCorruption: The model output shows that corruption has negative association with sustainability of cooperatives at1% significant level. Keeping other variables constant, the existence corruption decreases sustainability ofcooperatives by a factor of 0.43. This indicates that corruption contributes more for consumer cooperatives bring itto dormant. Kanagaraj (2012) found that corruption erodes their financial soundness like anything and will hindertheir successful operation in the market. Board of Directors and Managers have involved in corruption by violatingthe principles and values of cooperatives. This leads to lack of trust by the members as well as non-members.



Therefore, the continuity and success of cooperativesis under questions. International Cooperative Alliance(2012) found that due to corruption, cooperatives todayare viewed as failed institutions encircled by inefficiency.

Capital Shortage: It was hypothesized that the impactof capital shortage on sustainability of cooperatives willbe negative. The result also supported the negativeinfluence of capital shortage on sustainability ofcooperatives at 1% significant level. Consumercooperatives with capital shortage become dormant byodds of 0.15 than cooperatives with adequate capital.According to Shamble (2012), limited capital was anothermajor problem hindering consumer cooperatives.

Lack of Managerial Skill: It was expected that thereis strong association between managerial skill andcooperative sustainability based on the assumption thata management who has skill to manage and administercooperatives effectively. Lack of managerial skill leadsto low commitment of members to their cooperatives;poor leadership and weak culture of working together bymobilizing their resources (Esubalew, 2011). As a result,the cooperative cannot enter into any business activitiesthat would bring money into the cooperative andtherefore, it is just relying on its member’s contributions(Nkhoma, 2011). The model output supports thehypothesis and shows the negative effect and significantassociation between managerial skill and cooperativesustainability at 1% level.

Goods Delivery: It can help to improve the sustainabilityof cooperatives in terms of the availability of consumergoods based on members’ need and importance,otherwise affect member’s satisfaction and comitment.If members not satisfied due to non-availability of preferredgoods, adulteration and the black market, lack of productchoices leads threat that affects the continuity ofconsumer cooperatives (Kanagaraj, 2012). The resultfrom the model output also substantiates the hypothesis.By controlling other variables constant, sustainability ofconsumer cooperatives increases by odds ratio of 3.97as goods delivered at the right time.

Member Motivation: For success of co-operative, it isessential that the members must feel they are the partand parcel of the society (Gogoi, 2012). In addition, theco-operative society cannot survive without member’smotivation. The results from the model output alsorevealed that it has positive and significant effect withthe sustainability of cooperatives at 1% level.

Weak Marketing Plan: It has significant and negativeeffect on sustainability of consumer cooperatives with0.1% probability level. The odds ratio in favor ofsustainability of consumer cooperatives reduces byfactor of 0.21 as there is weak marketing plan in theconsumer cooperatives.

Poor Record Keeping: It has also negative influenceon sustainability of cooperatives and significant at 1%level. The odds ratio in favor of sustainability of consumercooperatives reduces by a factor of 0.23. Poor recordkeeping had serious consequences for delaying of annualaudit. This in turn may affect consumer cooperatives’ability to give dividend for its members. Therefore, Poorrecord keeping negatively influence sustainability ofconsumer cooperatives.

Sociability among Members: Sociability increasedmembers’ motivation and commitment. The result frommodel output also confirm that the positive and significantrelation between sociability and sustainability ofconsumer cooperatives. Keeping other variablesconstant, the sociability of cooperative membersinfluences their cooperatives sustainability by 2.33factors..

Conclusion and RecommendationsThe sustainability of consumer cooperatives is mandatoryto achieve the socio-economic benefit of members andfor social transformation. However, consumercooperatives in the study area do not guarantee theirfinancial performance. Marketing is a key activity for thesuccess but the marketing performance of samplecooperatives is weak and has many problems. The socioeconomic benefits accrued by the members also notattractive since members are dormant and their life hadnot changed after membership. The major factors thataffect the sustainability of cooperatives are corruption,capital shortage, lack of managerial skill, inconvenientgoods delivery, lake of members’ motivation, weakmarketing plan, poor record keeping and absence ofsociability among members. Hence, it can be concludedthat the sustainability of consumer cooperatives is notmuch satisfactory but it is impossible to ignore theirexertion since it is possible to guarantee theirsustainability. Based on the findings, the followingrecommendations are provided in order to increase theopportunities for success and to make them moresustainable:

• The city marketing and cooperative office need tocoordinate the marketing activities and providingmarket information. This would provide an excellentnetwork among the cooperatives and increase theirinfluence in markets.

• As sample cooperatives are not mature enough tolead themselves, the city marketing and cooperativeoffice should support by providing education andtraining for managers of cooperatives.

• Members themselves should understand their ownproblems and accept as a means to solve their socioeconomic problems and they should becomecommitted more and more.

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• To enhance member participation in governance ofcooperatives and being aware about objectives &benefits, providing education, training anddevelopment by cooperative management and the citycooperative bureau is important.

• In order to manage and administer consumercooperatives effectively there is a dire need ofqualified, trained and competent people.

• To eradicate corruption and develop trust betweenboard and members, cooperativea should perform theiractivities with transparency and open. Annual reportshould present on time and clearly discusses thefinancial performance to create a good relationshipwith members.

• The city cooperative promotion bureau should conductregular audit of accounts, sincere action againstmisappropriation of funds to ensure theirsustainability.

• Consumer cooperatives should employ accountantsin order to improve their poor record keeping.

• Consumer cooperatives should try to manage theproblems which will affect its marketing performancelike shortage of finance, lack of storage facilities, lackof marketing plan and knowledge gap.

• The cooperative promotion bureau should facilitatethe delivery of consumer goods on time to fill thedemand gap and the cooperatives should supplyconsumer goods on time.

• In order to ease capital shortage, finance institutionsshould create credit opportunity. To this end, theconsumer cooperatives expected to generate strongfinancial linkages with financial institutions.

References• Brazda and Robert, (2011), A Time of Crises

Consumer Co-Operatives and Their problems,vol.1Vienna, Austria.

• Bewketu, B (2013). Leadership Effectiveness andCompetencies of Management Committee ofConsumer Cooperative Societies in Hawassa City,SNNPR, Ethiopia, M.A. Thesis.

• Cook, M., &Burress, M (2009). A Cooperative LifeCycle Framework.

• Destahun Haile (2007). Cooperative Approach to localDevelopment: The case of coffee cooperative unionsin coffee growing regions of Ethiopia, M.A Thesis,AddisAbaba University.

• Dorward, A., Kydd, J., & Poulton, C (2008). TraditionalDomestic MarketsSystems for Agricultural Products,Background paper for the WDR.

• Esubalew Haile. (2011). Problems and Prospects ofAgricultural Cooperatives in Amhara R e g i o n : A

Case of Gozamin Multi-purpose Farmers‘ CooperativeUnion, MA Thesis in Addis Ababa University, Ethiopia

• Fulton, M (2001). Leadership in democratic andparticipatory organizations, Canadian Journal o fAgricultural Economics/Revue canadienned’agroeconomie, 49(4), pp 381-394.

• Gogoi, N (2012). History of Co-operative Movement& the Role of Consumer Co-operatives in Dhemajiand Lakhimpur Districts, Kashi Nath, Basic, Applied& Social Sciences journal, Volume II, October.

• International Cooperative Alliance. (2013).Statistical Information on the Co-operativeMovement. Retrieved 20 January, 2015, from http://www.ica.coop/coop/statistics.htmlInc.

• ICA and ILO. (2015).Contribution Of Cooperativesto Sustainable Development: A joint ILO a n dICA initiative.

• Kanagaraj K (2002). A Study on Challenges andOpportunities of Consumer Cooperative Societies inHawassa City, SNNPR, Ethiopia. An AnalyticalApproach, Vol-02, Issue-03, Jan-Jun 2012, Pp.1-26.

• Marshall, C., &Rossman, G. B (1999). DesigningQualitative Research (Third ed.). SAGE Publications,Thousand Oaks London.

• Nkhoma, T (2011). Factors affecting sustainabilityof Agricultural Cooperatives: Lessons from Malawi,M.A Thesis. Massey University, New Zealand.

• Reardon, T. and C.B. Barrett. (2000). Agroindustrialization, globalization, and internationaldevelopment: An overview of issues, patterns, anddeterminants, journal of Agricultural Economics,23 (3): pp 195-205.

• Ritchie, J., & Lewis, J (2003). Qualitative ResearchPractice: A Guide for Social Science Students andResearchers. SAGE Publications London.

• Spielman, J. (2008). Sustainable Livelihoods andEquitable Development. International Food PolicyResearch Institute. Addis Ababa.

• Simret, S. (2013). A Study on the MarketingPerformance of Sidama Elto Farmers’ CooperativeUnion, Sidama Zone, SNNP Region, Ethiopia, MAThesis, Hawassa University Ethiopia.

• Shambel Hailu. (2012). An Analysis on theChallenges And Opportunities of ConsumerCooperative Societies in Hawassa Town, SNNPR,Ethiopia, MA Thesis in Hawassa University Ethiopia.

• Tewoldemedihn.(2010).Performances AndChallenges Of Cooperatives In Ethiopia: The Caseof Werie Multipurpose Cooperative Union in CentralZone Of Tigray, Ethiopia



• USDA, R. (2014). USDA Co-op survey on the way - brief article - statistical data included Retrieved on June15, 2014, from http://findarticles.com/p/articles/mi_m0KFU/is_4_68/ai_79511983

• IFAD. (2012). statement to the FAO cooperative meeting delivered by the Assistant President, ProgramManagement Department

www.Cooperative Grocer. Com accessed on April 2

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ETHICS IN INFORMATION TECHNOLOGY

1. Assistant Professor, Department of Commerce, Bon Secours College for Women, Thanjavur.

Abstract

In the world corporate governance, awareness of ethical issues ensures that managers avoid abusing their power orundertaking improper actions that could result in questionable behaviours and practices within organisations. Fromthis point of view, sharing power amongst the different factors that make up a company’s structure and environmentbecomes a crucial issue in corporate governance. In this way, the relationship between ethics and corporate governancehumanizes the exercise of power and renders it more transparent and credible. Simply making money is not enoughfor these social or ethical investors—they want to do good whilst doing well.

B. Asha1

IntroductionEach society forms a set of rules that establishes theboundaries of generally accepted behaviour. These rulesare often expressed in statements about how peopleshould behave and they fit together to form the moralcode by which a society lives. Ethics is a set of beliefsabout right and wrong behaviour. Ethical behaviourconforms to generally accept social norms, many ofwhich are almost universal. However, although nearlyeveryone would agree that lying and cheating areunethical, what constitutes ethical behaviour on manyother issues is a matter of opinion. People develophabits that make it easier to choose between whatsociety considers good or bad.

Gaining the Friendliness communityOrganizations exist primarily it earn profits or provideservices to customers, they also have some basicresponsibilities to society. In many cases good ethicscan mean good business and improved profits.Companies that produce safe and effective productsavoid costly recalls and lawsuits. Companies that provideexcellent service maintain that customers instead oflosing them to competitors. Likewise bad ethics canlead to bad business results.

Ethical Work EnvironmentMost employees want to perform their jobs successfullyand ethically, but good employees sometimes make badethical choices. Employees in highly competitiveworkplaces often feel pressures from aggressivecompetitors, cutthroat suppliers, unrealistic budgets,minimum quotas, tight deadlines, and bonus incentivesfor meeting performance goals. Employees may alsobe encouraged to do “whatever it takes” to get the jobdone. Such environments can make some employeesfeel pressure to engage in unethical conduct to meet

management’s expectations, especially if there are nocorporate codes to conduct and no strong examples ofsenior management practicing ethical behaviour.

Professional organisationA professional code of ethics states the principles andcore values that are essential to the work of a particularoccupational group. Practitioners in many professionssubscribe to a code of ethics that governs their behavior.Most codes of ethics created by professionalorganisations aspire to become, and the lists rules andprinciples by which members of the organisation areexpected to abide. Many codes also include acommitment to continuing education for those whopractice the profession.No IT professional organization has emerged aspreeminent, so there is no universal code of ethics for ITprofessionals. However, the existence of suchorganisations is useful in a field that is rapidly growingand changing. IT Professionals need to know about newdevelopments in the field, which requires networking withothers, seeking out new ideas, and building personalskills and expertise.A Professional often provides services to clients whoeither work outside the professional‘s organisation orare “internal”. In relationships between IT professionaland clients, each party agrees to provide something ofvalue to the other. Generally speaking, the IT professionalprovides hardware, software or services at a certain costand within a given time frame. The client makes decisionsabout a project on the basis of information, alternativesand recommendations provided by IT professionals. Theclient trusts them to use their expertise and to thickand act in the client’s best interests. The IT professionalmust trust that the client will provide relevant information,listen to and understand what the professional says,ask questions to understand the impact of key decisions,



and use the information to make wise choices betweenalternatives. Thus the responsibility for decision makingis shared between client and professional.The ethical problem between IT professionals and clientsinvolves IT consultants or auditors who recommend theirown products and services or those of an affiliated vendorto remedy a problem they have detected.

MalpracticeNegligence has been defined as not doing somethingthat a reasonable man would do, or doing somethingthat a reasonable man would not do. Professionals whobreach this duty of care are liable for injuries theirnegligence causes. This liability is commonly referredto as professional malpractice. A certified public accountswho fails to use reasonable care, knowledge, skill andjudgment when auditing a client’s books is liable foraccounting malpractice. Professionals who breach thisduty are liable to their patients or clients, and possiblyto some third parties.

Ethical Issues: Software PrivacyIT users are the ones who commit software privacy. Acommon violation occurs when employees copy softwarefrom their work computers for use at home.

Attacks : VirusesComputer Virus has become an umbrella term for manytypes of malicious code. Technically, a virus is a pieceof programming code, usually disguised as somethingelse that causes some unexpected and usuallyundesirable event. Often, a virus is attached to a file sothat when the infected files are opened, the virusexecutes. A true virus does not spread itself fromcomputer to computer. To propagate to other machines,it must be passed on to other users through infected e-mail document attachments, programs on diskettes, orshared files. In other words, it takes action by thecomputer user to spread a virus.

Worms :Unlike a computer virus, which requires users to spreadinfected files to other users, Worms are harmful programsthat reside in the active memory of the computer andduplicate themselves. They differ from viruses becausethey can propagate without human intervention, sendingcopies of themselves to other computers by e-mailinternet relay chat.

Denial-of –Service AttacksA Denial-of-Service attach is one in which a malicioushacker takes over computers on the Internet and causesthem to flood a target site with demands for data andother small tasks. A denial-of-service attack does notinvolve a break-in at the target computer, instead it justkeeps the target machines so busy responding to astream of auto computer.

CybercriminalsInformation technology provides a new and highlyprofitable venue for cybercriminals. They hack intocorporate computers and steal, often by transferringmoney from one account to another to another-leaving ahopelessly complicated trail for law enforcement officersto follow. Cybercriminals also engage in all forms ofcomputer fraud-stealing and reselling credit cardnumbers, personal identities, and cell phone IDs. Theycan spend large sums of money to buy the technicalexpertise and access they need from unethical criminals.

Internet filteringAn Internet filter is software that can be installed with aweb browser to block access to certain web sites thatcontain inappropriate or offensive material. The bestinternet filters use a combination of URL filtering,keyword filtering, and dynamic content filtering. With URLfiltering, a particular URL or domain name is identifiedas an objectionable site and the user is not allowedaccess to it.

PreventionNo organization can ever be completely secure fromattack. The key is to implement a layered securitysolution to make computer break-ins harder than theattacker is willing to work, so that if an attacker breaksthrough one layer of security, there is another layer toovercome. Installing a firewall can lead to another serioussecurity issue – complacency. A firewall does nothingto protect a website from a denial-of-service attack. Afirewall also cannot configured to allow e-mail and benign-looking attachments to reach their intended recipient.

DetectionEven when preventive measures are implemented, noorganisation is completely secure from a determinedattack. Thus, organizations should implement detectionsystems to catch intruders in the act.

Assessing and Cultivating Ethical CultureCulture is comprised of the values, norms, folkways andbehaviors of an organization. Ethics is about moralvalues, or values regarding right and wrong. Therefore,cultural assessments can be extremely valuable whenassessing the moral values in an organization.

Ethics TrainingThe ethics program is essentially useless unless all staffmembers are trained about what it is, how it works andtheir roles in it. The nature of the system may invitesuspicion if not handled openly and honestly. In addition,no matter how fair and up-to-date is a set of policies,the legal system will often interpret employee behavior(rather than written policies) as de facto policy. Therefore,all staff must be aware of and act in full accordance with

Page 14




policies and procedures (this is true, whether policies and procedures are for ethics programs or personnelmanagement). This full accordance requires training about policies and procedures.

ConclusionThe risks of unethical behaviour are increasing, so the improvement of business ethics is becoming more important.Risk is the product of multiplying the likelihood of an event by the impact of its occurrence. Ethics has risen to thetop of business agendas because the risks associated with inappropriate behaviour have increased, both in theirlikelihood and their potential negative impact.

REFERENCE :https://en.wikipedia.org/wiki/Information_ethicswww.nr.edu/ite105/ppts/ethicswww.researchgate.net/.../1388-1957_Ethics_and_Information_Technologyhttps://www.aitp.org/.../How-Ethical-Theories-Apply-to-IT-Professionals....boingboing.net/2015/06/13/on-ethics-in-information-techn.html.



A STUDY ON ASSOCIATION BETWEEN INTELLECTUAL CAPITAL ANDCORPORATE PERFORMANCE OF LISTED FERTILIZER COMPANIES IN

INDIA: A MULTIVARIATE APPROACH

1. Assistant Professor, Department of commerce, Sri Krishna Arts & Science College, Coimbatore.2. Assistant Professor, Department of commerce, Sri Krishna Arts & Science College, Coimbatore.

Abstract

This empirical study attempts to examine the association between intellectual capital and corporate performance oflisted fertilizer companies in India. The study finds that by studying specific industry’s corporate performance one canascertain unique attributes, which are usually not apparent in the combined analysis of many sectors. This study hasanalyzed 10 companies in the fertilizer industry, which are selected from BSE listed fertilizer companies for the period2005 – 2015 using Multiple Regression Analysis. In this study, four regressors i.e., capital employed efficiency, humancapital efficiency, structural capital efficiency and valued added intellectual capital coefficient were employed toexamine their effects on different corporate performance measures such as return on assets, return on equity, earningsper share and book value. The empirical results revealed that independent variables such as capital employedefficiency, human capital employed efficiency and value added intellectual coefficient have shown statistically significantrelationship with the different proxies of corporate performance and they influence the corporate performance offertilizer companies to a great extent.

P. Arun Prakash1

IntroductionIn human resource based economy, intellectual capital(IC) is considered the key factor influencing businessperformance. Many theoretical and empirical studiesconfirm its strong effect on the overall results of the firm.IC cannot exist without human capital; witch is in factits main component. In transition economies, becauseof the imperfections of the labour market, staff costs arenot always correlated with productivity. Thus in somecases wages may be influenced or even set byemployers and employees may be forced to accept thesituation due to the lack of alternative job offers. On theother hand an opposite situation can occur especiallyin large companies with strong trade unions that havethe power to raise salaries more than productivity growth.With this few introductory notes, this paper has beenorganised in the following order. Section 2 deals withreview of literature; Section 3 outlines the overall researchframework in terms of research design. Section 4discusses the analytical results and Section 5 providesconcluding remarks.

Review Of LiteratureKenneth Galbraith (2012)1 empirically examined theinfluence of intellectual capital on financial performanceat microeconomic level. Based on data collected fromthe financial statements of companies listed atBucharest Stock Exchange, present study analyses thecorrelation between intellectual capital and itscomponents, calculated by using the VAIC method, and

financial performance, calculated by using Return onEquity. Several regression models are being used. Theresults support the proposed hypothesis, proving thatthere is a significant positive correlation betweenintellectual capital and financial performance. This studyhas some limitations. They are related on the one handto the model used for valuating intellectual capital (VAIC)and on the other hand to the sample of companies andthe used methodology. Khanhossini, Nikoonesbati,Kheire, & Moazez (2013)2 examined that a paradigmto knowledge-based economy has encouragedcompanies to increase their quality of employees torespond to the market transformation. Employees areoften forgotten as valuable assets since employees areoften only represented by wages and salaries, includingother related employees’ expenses. A trend topic for theupcoming event on ASEAN Free Trade Area (AFTA) in2015 has increased influenced to many people toupgrade themselves as a way to compete with residence/citizens of other neighboring countries. Since humancapital is a part of intellectual capital, this research alsoanalyzes the importance of structural capital and capitalemployed for companies. GholamhosseinMehralianae, Hamid Reza Rasekhab,(2011)3 studiedthe cost-effectiveness tools for the analysis of company’sintellectual resources, in terms of resource-based andvalue-based approaches. Our study focuses on theevaluation of intellectual capital methods to discover thedrivers of company growth. We suppose that thepotential effectiveness of intellectual capital resources

Dr. K. Senthil Kumar2

Page 16




varies according to different institutional factors. Severalstatistical methods will be used for the empirical issuesin this research, including common cross-sectional andpanel data analysis, and the instrumental variablesmethod. The industries presented in the dataset areselected according to the predominance of severalintellectual capital elements. (Namazi and Ibrahimi,2009)4 adopted the term of intellectual capital had beenused by John Kens Galberis for the first time He believedthat intellectual capital is beyond of sheer thought andencompasses a kind of action of thoughts. In thisconcept, intellectual capital is a static intangible assetand it is considered as a means of reaching goals. Inthis area, we should not ignore the efforts of James Tobinin the second half of previous century which his modelbased on ratio -QV Tobin- for the first time enabled theorganizations to investigate the effective performance offirm’s intellectual capital. Intellectual capital is definedas intangible assets that enable the firms to operate.(Oral Erdogan 2010)5 investigated the impact ofintellectual capital on the financial performance of thedepository banks in Turkey. It is demonstrated thatbanks’ return on equity ratios are strongly related tointellectual capital of the banks. Our findings underlinethe importance of intellectual capital in enhancing bankprofitability and revenue growth. Banks need to giveimportance on intellectual capital in order to obtaincompetitive advantage in today’s global market. Anindicator of this is the shift of profitable sources fromphysical assets to intellectual assets. This is especiallytrue in knowledge-driven sectors, such as banking, wherethe value added of corporations, organizations andindividuals is directly related to their knowledge andintellectual capital.

Research DesignStatement of the ProblemIn India, only a few studies have analyzed the relationshipbetween intellectual capital and financial results onselect industries. There are so many studies availableon capital structure in developed countries. Those studiesalso concentrated on the individual determinants suchas capital employed efficiency, human capital, structuralcapital and value added intellectual coefficient etc., so,the present study aims at finding the associationbetween intellectual capital factors with its implicationson fertilizer industry in India. The reason for fertilizerindustry is due to its capital intensive in nature.

Objectives of The StudyThe study has framed the following objectives• To analyze the relationship between intellectual

capital & profitability of select fertilizer companies inIndia.

• To determine whether the components of intellectualcapital influence the return on assets, return on equity

Statement of HypothesisHO – There is no significant relationship betweendependent variable (Return on Assets, Return on Equity,Earnings Per Share & Book Value of equities) andindependent variables such as Capital EmployedEfficiency, Human Capital Efficiency, Structural CapitalEfficiency and Value Added Intellectual Coefficient.H1 – There exists a significant relationship betweendependent variable (ROA, ROE, EPS & BV) andindependent variables such as Capital EmployedEfficiency, Human Capital Efficiency, Structural CapitalEfficiency and Value Added Intellectual Coefficient.

MethodologyFor this purpose of study, the10 sample companies havebeen chosen which are listed in BSE under Fertilizercategory. The required secondary data such as AnnualReports, Balance sheet and Profit and Loss Accountare collected from Prowess and official websites of thecompanies. The study period covers 12 years since2005 till 2015.Tools used for the Study:For this study, the following statistical tools are used.1. Descriptive Statistics 2. Multiple Correlation Analysis

and2. Multiple Regression Analysis ModelThe multiple regression equation fitted to find thedeterminants of capital structure wasCP = ααααα + βββββ1 CEE + βββββ2 HCE + βββββ3 SCE + βββββ4 VAIC + ξξξξξWhere Corporate Performance = Return on Assets,Return on Equity, Earnings Per Share and Book Value.α = Constant, β1… β4 = Estimated coefficients and ξ =error termThe study is based on the hypothesised relationshipthat

ROA/ROE/EPS/BV = f (CEE, HCE, SCE & VAIC)Definition Of VariablesDependent VariablesIt includes Return on Assets, Return on Equity, EarningsPer Share and Book Value.a. Return on Assets = Net Profit / Total Assets.b. Return on Equity = Net Profit / Net worthc. Earnings Per Share = Earnings available to equity

share shareholders / No of equity shares.d. Book Value of equities –As reported in the Balance

sheet.



Independent Variablesa. CEE – Capital Employed Efficiency = Total Assets – Intangible Assets.b. SCE – Structural Capital Efficiency = Structural Capital / Value Added.c. HCE – Human Capital Efficiency = Human Capital / Value Addedd. VAIC = Value Added Intellectual Coefficient – CEE+SCE+HCE

DISCUSSION ON EMPIRICAL RESULTS

Table - 1 : Descriptive Statistics of Corporate Performance and Intellectual Capital Variables

ROA

ROE

EPS

BV

CEE

HCE

SCE

VAIC

Minimum

-265.96

-327.79

-29.09

-119.74

-356.08

.79

-.56

-288.42

Maximum

61.10

170.43

95.06

441.27

21.19

15.41

.93

28.42

Std. Deviation

565.35

52.47

16.69

81.05

42.00

2.64

0.31

27.01

Mean

96.9649

6.1167

6.6264

48.6944

-5.0694

3.8194

.5219

2.2390

Table 1 explains the descriptive statistics of the dependent and independent variables employed in the multipleregression analysis. It is based on a balanced data set compiled from 10 companies operating in the IndianFertilizer industry during the period from 2005-2015. The summary statistics presents a wide variability among theintellectual capital factors which have impact on Fertilizer companies’ corporate performance. The return on assetsratio (ROA) variable has the highest standard deviation value followed by Book Value of Equities (BV) and return onequity ratio (ROE). This denotes that ROA has more significance than any other variables in the study over thestudy period. The mean of ROA is 96.9649 and standard deviation is 565.35, which show that the ROA deviates tothe extent of 565.35 from both the ends. From table 1, it can be seen that capital employed efficiency (CEE) showsthe highest disparity between its minimum and maximum values which are -356.08 % and 21.19 % respectively.

Table - 2 : Correlation Matrix of Intellectual Capital Variables

CEE

HCE

SCE

VAIC

Pearson Correlation

Pearson Correlation

Pearson Correlation

Pearson Correlation

CEE

1

.011

-.082

.629**

VAIC

1

SCE

1

-.006

2.2390

HCE

1

.310**

.120

**. Correlation is significant at the 0.01 level (2-tailed).

Table 2 summarises details on the degree of correlation between the explanatory variables used in the multipleregression analysis. The correlation matrix shows that in general the correlation between the intellectual capitalvariables is moderate indicating that multicollinearity problems are not severe or non-existent. Multicollinearity is aproblem when two or more independent variables explain the same relationship. In that case, it is very difficult toidentify which variable is explaining the relationship with dependent variable. It is assumed to exist when thecorrelation coefficient between any two explanatory variables is above 0.80, which is not the case here. Value AddedIntellectual Capital Coefficient (VAIC) shows the highest correlation coefficient of 0.629 which is near to 0.7 but donot exceed the limit. Human Capital Efficiency (HCE) and Value Added Intellectual Capital Coefficient (VAIC) arehaving positive correlation with capital employed efficiency (CEE) of fertilizer companies. But, Structural CapitalEfficiency (SCE) has shown a negative correlation coefficient in the model. Value Added Intellectual Capital Coefficient(VAIC) is having a statistically significant correlation with capital employed efficiency (CEE). Similarly, StructuralCapital Efficiency (SCE) is having significant correlation with human capital efficiency (Table : 3)

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Multiple Regression Analysis Of Intellectual Capital And Corporate Performance Indictors In FertilizerCompanies

Table - 3 : Model Summary

Model

ROA

ROE

EPS

BV

Multiple R

.870

.815

.788

.792

Std. Error ofthe Estimate

1.98

1.33

.22

1.72

Adjusted RSquare

.751

.656

.615

.637

R Square

.756

.664

.622

.627

Table 3 shows that on the basis of given predictors and dependent variable, three models have been developed.Explanatory power of the model as indicated by R2 (multiple coefficient of determination) and adjusted R2 are fairlygood. Model 1 denotes return on assets (ROA) as dependent variable. This model explains around 75.6 % of thevariation in the dependent variable/corporate performance. The adjusted explanation of the model is about 75.1%.The F value which is a measure of overall significance of the estimated regression and also a test of significance ofR2 is 151.347. In model 2, return on equity ratio (ROE) has been taken as dependent variable. This model explainsaround 66.4 % of the variation in the dependent variable. The adjusted explanation of the model is about 6.56%. TheF value which is a measure of overall significance of the estimated regression and also a test of significance of R2is 82.407. Model 3 implies the earnings per share ratio as dependent variable. EPS model has explained around62.2% variation in the corporate performance of fertilizer companies. The adjusted explanation of the model is about61.5 %. The F value which is a measure of overall significance of the estimated regression and also a test ofsignificance of R2 is 96.598. In model 4, Book Value of equities has been taken as proxy of corporate performance.It is very clear from Table 3 that the influence of intellectual capital on dependent variable is 62.7%. The adjusted R2of the model is also fairly good. The F value which is a measure of overall significance of the estimated regressionand also a test of significance of R2 is 22.540. The result in the entire model showed that the intellectual capitaldeterminants fairly explain the dependent variable / corporate performance. However, only profitability measuressuch as ROA and ROE have reported a strong correlation with intellectual capital. It implies that market share offertilizer companies are influenced by some other variables than the predictors chosen in this model.

TABLE - 4 : ANOVA

ROA

ROE

EPS

BV

Regression

Residual

Total

Regression

Residual

Total

Regression

Residual

Total

Regression

Residual

Total

Sum of Squares

3567.650

1151.128

4718.778

1024.864

518.787

1543.651

23.238

14.145

37.384

3435.02

438.144

3873.164

Sig.

.000

.000

.000

.000

F

151.347

82.407

96.598

22.540

df

4

115

119

4

115

119

4

115

119

4

115

119

Mean Square

594.608

3.929

146.409

1.777

4.648

.048

85.875

3.809

Model

To assess the significance of these models, ANOVA values have been calculated for all the four models. The nullhypothesis here can be stated as the impact of selected predictors on the dependent variable is zero. From theresults in the above table, it is clear that all the four models have been statistically significant in explaining thevariation in corporate performance. Hence, the null hypothesis stating no impact of selected regressors on criterion



variable stands rejected. Thus, it is clear that the capital structure of listed fertilizer companies is largely influencedby capital employed efficiency, human capital efficiency, and valued added intellectual coefficient.

TABLE - 5 : REGRESSION CO-EFFICIENT OF CORPORATE PERFORMANCE INDICATORS IN FERTILIZERCOMPANIES

From the standardized beta coefficients, it is clear that the percentage contribution of structural capital efficiencyhas been highest in regression model 1 (Return on Assets). In model 2 (Return on Equity), human capital efficiencyshows the highest contribution whereas in model 3 also (Earnings Per Share), human capital efficiency causeshighest contribution. In model 4, where Book Value of equities is dependent variable, value added intellect capitalcoefficient has showed the maximum contribution in the regression model. It can be inferred from the regressioncoefficient summary that the independent variables such as capital employed efficiency, human capital employedefficiency and value added intellectual coefficient are having statistically significant relationship with all the proxiesof dependent variable.

ConclusionThis study has examined the impact of intellectual capital determinants on corporate performance of listed fertilizercompanies in India. The study has used multiple regression analysis to achieve the hypothesised objectives for thestudy period 2005-2015. The empirical results clearly showed that the corporate performance of listed fertilizercompanies is immensely affected by human capital efficiency (HCE). However, only profitability measures such asROA and ROE have reported a strong correlation with intellectual capital. It implies that market performance indicatorsof fertilizer companies (i.e., Earnings Per Share and Book Value) are determined by some other variables than thepredictors chosen in this model.

References1. Kenneth Galbraith2. Khanhossini, Nikoonesbati, Kheire, & Moazez3. Gholamhossein Mehralianae, Hamid Reza Rasekhab4. Namazi and Ibrahimi, 20095. Oral Erdoðan 2010

Model

CEE

HCE

SCE

VAIC

Beta

-.093

-.160

.210

-.272

Sig.

.004

.000

.000

.000

Sig.

.000

.002

.617

.000

Sig.

.000

.000

.000

.000

Beta

.288

.654

-.806

.238

Beta

.085

.509

.124

-.568

ROA ROE EPS BV

Sig.

.061

.000

.047

.000

Beta

-1.155

.221

-.057

1.213

Page 20




A STUDY ON CONSUMER BEHAVIOUR TOWARDS POSTALINVESTMENT SCHEMES IN THANJAVUR TOWN

1. Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur

Abstract

There is lot of investment choices and one must select the most appropriate one. The person dealing with theplanning needs to know all the various investment choices and how these can be chosen for the purpose of attainingthe overall objectives. The details of making the investment along with the various ways in which the investment hasto be maintained and managed. The developing countries like India face the enormous task of finding sufficientcapital in their development efforts. The analysis clearly shows the impact of postal investment schemes collectedfrom 200 respondents. the postal investments and rural savings have a dual role to play. Primarily they undertakethe responsibility of savings of India postal investors and secondly they help the nation to generate the necessaryfunds resulting in the society’s getting overall benefits.

Keywords: Investment, customers, post office.

B.Sudha1

IntroductionThere is lot of investment choices and one must selectthe most appropriate one. The person dealing with theplanning needs to know all the various investmentchoices and how these can be chosen for thepurposePostal savings schemes not only yield morereturns, but also are guaranteed by the Governmentmaking it highly secured. The increase in net collectionsis due to the collapse of many non – banking financialcompanies. Besides, the schemes provide the “BestInvestment Option” because of their security and highertax – free returns. In a society returns and is averse totaking risks, it is not a surprise. In this context a sincereattempt is made to study the Consumer Behaviourtowards Postal Investments Schemes.

Objectives of The Study• To examine the awareness of the consumer about

the saving schemes• To know the different deposit schemes available in

the post office• To analyse the consumer behaviour towards the

existing postal schemes• To indentify the most preferred deposit schemes• To find out the problems faced by the consumer• To offer suggestions for improvement of the features

of postal investments and there by to increase thecollections through postal investments

Review of LiteratureToshio Taki (2006) the growth in the arrests held intheir investment trusts has been driven by the large scalesale of the balanced fund with bimonthly dividends andthe foreign Bond fund. In the sale handled in parallel bythe bank, a shift in product preference is underway fromforeign bond funds to balanced funds and domesticequity funds.Marmi Imai(2009) pointed that the privatization ofJapan’s postal saving system has been a politicallycharged issue since it first started being debated in thelate 1980’s and yet it provides a useful setting in whichpolitical economy of economy policy making can beinvestigated empirically. Analyzing the pre-electionsurvey of the House of Representatives candidates in2003 and also the voting patterns of Liberal DemocraticParty (LDP) members on a set of postal privatizationbills in 2005, this paper asks why some politician’sfiercely apposed privatization.Dr.Ganapathi(2010) studied that various small savingsschemes were mainly meant to help small investors andalso those who are in high tax brackets. The studyconcluded that proper advertisements must be made forpost office saving scheme. So that even a layman couldknow about these schemes and deposits can beincreased. They stated that investing their amount inpost office deposits provides safety and security for theamount invested.



Results and DiscussionTable - 1 : Preference of the Postal Investment Schemes

S.NO

1

2

3

4

5

6

7

RESPONSES

Saving Account

Recurring Deposit Scheme

Time Deposit Scheme

Monthly Deposit Scheme

Public Provident Fund Scheme

Senior Citizen Saving Scheme

Life Insurance Scheme

TOTAL

NO. OF RESPONDENTS

53

32

26

42

21

16

10

200

PERCENTAGE

27

16

13

21

10

8

5

100

Interpretation: Primary DataThe data describes the preference of the Postal Investment Schemes 27% of the respondents have deposited in theSaving Account Scheme; 21% of the respondents have deposited in the Monthly Income Scheme; 16% of therespondents have deposited in Recurring Deposit Scheme; 13% of the respondents have deposited in Time DepositScheme; 10% of the respondents have deposited in Public Provident Fund Scheme and 5% of the respondentshave deposited in Life Insurance Scheme.

T - TESTDifference between Gender of the Respondents And Level Of Satisfaction On The Postal InvestmentSchemesNull Hypothesis: (Ho)There is no Significant Difference between the Gender of the respondents and level of satisfaction on the PostalInvestment Schemes.Alternative Hypothesis: (H1)There is an significant Difference between the Gender of the respondents and level of satisfaction on the PostalInvestment Schemes.

T- TestT = X1 - X2 x n1n2/n1 + n2

SWhere,

Sn1+n2 - 2

(X1 - X1)2 + (X2 - X2)2

Table - 2

X1

57

143

-

-

-

200

X2

44

43

39

36

38

200

X1 - X¯1

-43

43

-

-

-

(X1 - X¯1)2

16

9

1

16

4

46

X2 - X¯2

4

3

-1

-4

-2

(X1 - X¯1)2

1849

1849

-

-

-

3698

Page 22




T = 2.6205

T = 2.1926 X 1. 1952

(X1 - X1)2 + (X2 - X2)2n1+n2 - 2S =

3698+462+5-2S =

X1 = ΣX 1/ n1 = 200/2 = 100

X2 = ΣX 2/ n2 = 200/5 = 40

748.8S =

S = 27.364

T = 100 - 40 X 27.364

2 X 5 / 2 + 5

10 / 7T = 60 X 27.364

Degree of Freedom r = n1+n2 -2

= 2 + 5 -2= 7-2

r = 5

The tabulated value T-test 0.05 dif at 5 at 5% level ofsignificance is 2.015

Conclusion:Since, calculated value of t- test is higher than thetabulated value hence, null hypothesis is rejected. So,it conduces that there is an significant Differencebetween the Gender of the respondents and level ofsatisfaction on the Postal Investment Schemes.

Suggestions• Government must create more awareness among the

rural and urban people about the postal investmentschemes and benefits availed through it as it has notreached the people properly.

• Good reliable, Government authorized agent shouldbe appointed so that people find it easy to hand overthe money so that mobilisation of savings could beincreased.

• The Post Offices should be computerized and morestaff members are to be appointed as the majorityfeel that the service provided by the post offices isnot good.

• Computer facilities are recently introduced in thepostal department. But the modernized equipmentsare not available in most of the post office. Internetand advanced technologies are to be provided.

• There must be change in the infrastructure facilitiesof Post Offices and the staff should be morehospitable.

ConclusionSince independence, the prime objective of thegovernment policy in India is to promote a rapid andbalanced growth. As development is a continuousprocess, it requires the utilization of resourcesmore effectively to achieve the accepted means.Sustaining the development mainly depends on theavailability of large volume of capital. Availability ofadequate finance ensures systematic and uninterrupteddevelopment generally in the economy of the countryand particularly in the field of postal investments.Necessary postal investments can be made availableif the postal investments intermediaries perform theirwork efficiently and effectively. Banks, non-bankingfinance companies, post office and share markets arethe major intermediaries. These organizations help theretail and rural investors to save and invest their moneyfor a specific purpose. Among the above, India postoffices perform their work efficiently and effectivelywith reference to rural investments. Hence, the postalinvestments and rural savings have a dual role toplay. Primarily they undertake the responsibility ofsavings of India postal investors and secondly theyhelp the nation to generate the necessary fundsresulting in the society’s getting overall benefits.

REFERENCES1. Central statistical organization, “ Estimate of national

income 1948-49 to 1961-62”, Government of India2. Carr J.L., (2009), “Investment Economics”, Califonia,

Sane3. Duesenberry, James. S., (2009), “Income, Savings

and theory of Consumer Behaviour”, HarvardUniversity Press, Cambridge

4. Gopalakrishnan. C., (1995), “InvestmentManagement”, Kalyani Publishing House, Ludhiyana,United Kingdom.

5. An All – India Survey (1998) investors Lose faith incapital markets; study, Indian Express

6. Banks, J.and Tanner S.(1996) Fiscal studies, Volume17, Issue 2, May 1996

7. NCAER, (1961), “Savings in India”, New Delhi8. Ranganathan (2006) A Study of fund selection behavior

of Indiviuals investors towards mutual funds; withreference to Mumbai city. ICFAIN journal ofBehaviourial Finance.



A STUDY ON FACTORS OF PROMOTION IN ONLINE MARKETING

1. Assistant Professor, Department of commerce ,K.N.G.A.C, Thanjavur.

Abstract

Online marketing, a new paradigm in business, which is a result of the convergence of computing, broadcasting andtelecom technologies, is revolutionizing the way the people do business, and companies today have to adopt to thisnew paradigm. Marketing through online is just as important as in the physical world. Online marketing should not beseen as a substitute for a real set up, but should be used to add to the physical set up. It can act as a front end, butto be successful it is important to have a strong physical back up to it. Online marketing offers many potentialbenefits to the society and the organization as a whole through its unique features. An exploratory research conductedon the companies who transact electronically on products like textile, jewellery and consumer electronics. The studyis characterized by flexibility and informality as very little knowledge is available about the problem. The companiesselected for the study were confined from the point of view of their products like textile, jewellery and electronics. Inonline marketing a seller’s success depends upon the promotional activity he adopts to attract the consumers. In thedigital world people were often carried away by the advertisements. Hence, it was very important to feel the pulse ofthe consumer and study the promotional factors in online marketing which revealed the following results. Magazines& newspapers proved to be the best promotional activity in online marketing which attracted the consumers, thesuccess of banner ads was to a certain extent.

Dr. A.Kanmani Joan of Arch 1

IntroductionOnline marketing, a new paradigm in business, which isa result of the convergence of computing, broadcastingand telecom technologies, is revolutionizing the way thepeople do business, and companies today have to adoptto this new paradigm. Marketing through online is justas important as in the physical world. Online marketingshould not be seen as a substitute for a real set up, butshould be used to add to the physical set up. It can actas a front end, but to be successful it is important tohave a strong physical back up to it. Online marketingoffers many potential benefits to the society and theorganization as a whole through its unique features.Success of any marketing activity depends upon thepromotional measures adopted by the marketer. Hence,this paper explains the promotional activities adoptedto attract the consumers like recommendations,magazines and newspapers, search engines andadvertising through radio, television etc.; forms ofpromotional activities like pictorial representation, bannerads and verbal slogans; project elements of the companylike general web marketing, shopping cart and onlinemarketing; ways adopted to promote sales likeadvertisement, shopping experience, online catalogueand search engines; level of success of banneradvertisements; concentration of online information onthe components like product, price, promotion andphysical distribution etc., were studied through the

frequency tables. categorical regression ans Neuralclassification analysis was used to weigh thedeterminants and was represented with the help of thegraph.

Review of LiteratureBrian F. Blake, Kimberly A. Neuendorf & Colin M.Valdiserri (2005) This study extends the conventionalwisdom concerning how a commercial website can beconfigured to attract online shoppers, and specifically,initial shoppers. It was also found that, conversely, themore innovative shoppers reveal a stronger preferencefor form features. But high and low innovativeness groupsdo not differ appreciably in respect to desire forsubstantive features.Vincent Cho (2005) This study examined the effect ofthe four constructs – trust in online media, trust in onlineservices, perceived risk with online media, and perceivedrisk with online services – on the use of information-oriented online legal services.Bill Merrilees & Tino Fenech (2007) identified in theirstudy that the literature on catalog buying is heavilyskewed to the business to consumer (B2C) area andincreasingly is orientated to the multi-channel world ofshopping choice, including online, catalog and storeoptions.Geke van Dijka, Shailey Minochaa & Angus Laingb(2007) investigated the consumer use of e-services in a

Page 24




multi-channel context. Many HCI studies on the use ofe-services focus on the use of the online channel inrelative isolation..Lydia Gana, ShujiaHeb, Tingli Huangb, & Jiebin Tanb(2007) their study identified the pricing strategies of thedot-bams (brick-and-mortars) and dot-coms of thegrocery trade in Singapore differs from other empiricalstudies.Lenita Davisa, Sijun Wangb & Andrew Lindridgec (2007)studied that, On- line retailing created a globalmarketplace with an innumerable array of competitors.Essential to online store's ability to attract and retaincustomers globally is its store atmospherics, which aredesign elements used to garner attention and create apositive buying environment [Kotler Phillip.

Objectives of The StudyThe study was proposed with the following objectives :• To study the factors of promotion in online marketing

in TamilNadu.• To identity the forms of promotion adopted by the

online marketers.• To examine and analyse the performance of online

marketers with reference to electronics, textile andjewellery.

HypothesisFollowing are the various hypothesis of the study :1. Sale of products like electronics, textile and jewellery

through online was not effective.2. Promotional activities like banner ads and its forms

was not effective in online marketing.

MethodologyThis is an exploratory research conducted on thecompanies who transact electronically on products liketextile, jewellery and consumer electronics. The studyis characterized by flexibility and informality as very littleknowledge is available about the problem.For this study non-probability sampling method wasused where the chance of any particular unit in thepopulation selected was unknown. The companies inTamilNadu selling their products through online are manyin number in Coimbatore and in Chennai. Companiesselling their products online were limited in Coimbatorewhen compared to Chennai. So the study area wasconfined only to Chennai. The companies selected for

the study were confined from the point of view of theirproducts like textile, jewellery and electronics.

Sources Of DataThe study was done with the analysis based on the bothprimary and secondary data. Primary data pertaining todemographic and socio-economic characteristics of thecompanies and their attributes, opinions, awareness andknowledge in the field of online marketing were obtainedthrough survey technique. Structured questionnaire withdirect, open-end, close-end and multiple choicequestions was prepared and appended to the chosenrespondents who sold goods online. The questionnairewas based on the following - company’s generalinformation, features of consumer durables sold online,challenges and problems faced by the online marketers.Secondary data which helped to execute the study werecollected through various sources. It was also a valuablesource for marketing research. Type of secondary dataused were the external data which were generated fromthe following : - News papers and magazines,Books on e -commerce, e-marketing and onlinemarketing, Information downloaded from the net,Industrial sources, Past researches, Commercialsources and Other miscellaneous sources.

Tools Used For Analysis and InterpretationThe first part of the analysis consists of various tabulationof the data, where frequency and percentage wereobtained. In the second part of the analysis, crosstabulation was done on the basis of the nature of theunits, years of experience of the units, products dealt,volume of sales and the factors influencing theconsumers with reference to the four P’s of marketingmix – the product, price, promotion and physicaldistribution in order to analyse the relationship betweenthe factors through the Contingency co-efficient.In the third part of the analysis, categorical regressionwas used to identify the dominant and the mostsignificant independent variable which helped to justifythe effectiveness of online marketing with reference tothe components of the marketing mix. At last, neuralnetwork was used to identify the non-linear relationshipbetween the dependent and independent variables. It alsohelped in the process of ranking the determinants thatwas used to measure the effectiveness of onlinemarketing (Table : 1)



Table - 1 : Relationship Between Factors of Promotion Vs Effectiveness of Online Marketing For TheUnits Selling Electronics

Dependent Variable : Effectiveness of Online marketing

Multiple R =0.786 F value = 4.733 df (14,41) Pvalue < 0.01R Square = 0.618Y^ =0.657X1+0.656X2+0.165X3+0.014X4+0.070X5-0.482X6

where Y^ is the estimated effectiveness of Online MarketingThe above equation describes that the independent variable such as promotional activities adopted to attractconsumers (.657), forms of promotional activities (.656), and project elements of the company (.165) had achievedgreater heights and increased the effectiveness of online marketing.The result of F test revealed that the calculated significance of the regression co-efficient of the independentvariables like ways adopted to promote sales and level of success of banner advertisements were not valid at 1 percent level. The multiple R found to be 0.786 revealed that there exists a relationship of 78.6 per cent between theeffectiveness of online marketing and the factors of promotion in online marketing. The R2 of 0.618 confirmed that,the explanatory variable explained only 61.8 per cent variations in the effectiveness of online marketing.Finally, the F test showed that the explained variation was highly significant at 1 per cent level. The beta value ofpromotional activities adopted to attract consumers was followed by forms of promotional activities, project elementsof the company, level of success of banner advertisements etc., were not significant at 1 per cent level. Thevariable concentration of online information (48.2%) showed a negative contribution which decreased the effectivenessof online marketing.

Table - 2 : Relationship Between Factors of Promotion Vs Effectiveness of Online Marketing For TheUnits Selling Textile


Independent variable

Promotional activities adoptedto attract consumers (X1)

Forms of Promotionalactivities (X2)

Project elements of thecompany (X3)

Ways adopted to promotesales (X4)

Level of success of BannerAdvertisements (X5)

Concentration of Onlineinformation (X6)

Beta

.657

.656

.165

.014

.070

-.482

Std. Error

.109

.107

.098

.103

.102

.111

Sig.

.000

.000

.068

.982

.623

.000

df

3

2

2

2

2

3

Standardized CoefficientsF

36.308

37.639

2.873

.018

.479

18.780






Beta

.207

.293

.220

.154

Std. Error

..098

.098

.100

.096

Sig.

..006

.000

.010

.083

df

3

2

2

2


4.433

8.867

4.812

2.560

Page 26




Multiple R =0.508 F value = 2.113 df (14,85) Pvalue < 0.01R Square = 0.258Y^ =0.207X1+0.293X2+0.220X3+0.154X4-0.191X5+0.342X6

where Y^ is the estimated effectiveness of Online MarketingThe above equation describes that the independent variable such as concentration of online information (.342),forms of promotional activities (.293), project elements of the company (.220), promotional activities adopted toattract consumers (.207) and ways adopted to promote sales (.154) had achieved greater heights and increasedthe effectiveness of online marketing.The result of F test revealed that the calculated significance of the regression co-efficient of the independent variableproject elements of the company, ways adopted to promote sales and level of success of banner advertisementwere valid at 1 per cent level. The multiple R found to be 0.508 revealed that there exists a relationship of 50.8 percent between the effectiveness of online marketing and the factors of promotion in online marketing. The R2 of0.258 confirmed that, the explanatory variable explained only 25.8 per cent variations in the effectiveness of onlinemarketing.Finally, the F test showed that the explained variation was highly significant at 1 per cent level. The beta value ofconcentration of online information was followed by forms of promotional activities, project elements of the company,promotional activities adopted to attract consumers etc., were highly significant at 1 per cent level. The variablelevel of success of banner advertisements (19.1%) showed a negative contribution which decreased the effectivenessof online marketing.

Table - 3 : Relationship Between Factors of Promotion Vs Effectiveness of Online Marketing For TheUnits Selling Jewellery




-.191

.342

.099

.096

2

3

3.706

12.607

.029

.000








Beta

..719

.437

.204

-.529

.278

-.215

Std. Error

.099

.113

.095

.100

.105

.093

Sig.

.000

.000

.016

.000

.002

.008

df

2

2

2

3

2

2


52.710

15.037

4.626

28.269

7.074

5.404

Multiple R =0.821 F value = 6.370 df (13,40) Pvalue < 0.01R Square = 0.674Y^ =0.719X1+0.437X2+0.204X3-0.529X4+0.278X5-0.215X6

where Y^ is the estimated effectiveness of Online MarketingThe above equation describes that the independent variable such as promotional activities adopted to attractconsumers (.719), forms of promotional activities (.437), level of success of banner advertisements (.278), andproject elements of the company (.204) had achieved greater heights and increased the effectiveness of onlinemarketing.



The result of F test revealed that the calculated significance of the regression co-efficient of the independent variableproject elements of the company and concentration of online information were valid at 1 per cent level. The multipleR found to be 0.821 revealed that there exists a relationship of 82.1 per cent between the effectiveness of onlinemarketing and the factors of promotion in online marketing. The R2 of 0.674 confirmed that, the explanatoryvariable explained only 67.4 per cent variations in the effectiveness of online marketing.Finally, the F test showed that the explained variation was highly significant at 1 per cent level. The beta value ofpromotional activities adopted to attract consumers was followed by forms of promotional activities and level ofsuccess of banner advertisements, etc., were highly significant at 1 per cent level. Other variables like waysadopted to promote sales (52.9%) and concentration of online information (21.5%) showed a negative contributionwhich decreased the effectiveness of online marketing.

Table - 4 : Neural Classification Analysis of Factors of PromotionDependent Variable : Effectiveness of Online Marketing

The above table explains the neural classification analysis of the determinants to the effectiveness of onlinemarketing. The determinants were ranked according to the weights achieved. Ways adopted to promote sales wasranked first (29.932) followed by Project elements of the company in the second rank (19.728), Promotional activitiesadopted to attract consumers as third (16.667) and Forms of promotional activities as fourth (15.646) and othersrespectively.The table illustrates that there exists a non – linear relationship between the dependent and independent variableswith 19 hidden layers and correct classification rate at 69.05 per cent with reference to the estimated sequentialalgorithm.

Findings1. As the study was about consumer durables three products were selected were like electronics textile and

jewellery 47.6% of the units sold textile through online marketing and electronics were at 26.7% and Jewelleryat 25.7%.

2. 78% of the respondent units said they were able to attract the consumers through the advertisements inmagazines and newspapers.

3. The major promotional activity followed by the study units was the banner ads with 52.9%4. 53.8% of the units concentrated in general web marketing .5. Search engines proved to be the best way adopted to promote sales with 71.9% of the units.6. Banner advertisements was contributing to a certain extent with 52.4% to the success of online marketing.7. While delivering the information to the consumers 76.2% of the units said that they concentrated in the product

than in other P’s of marketing mix.8. Study units selling electronics and jewellery had its highest value for magazines & newspapers with 82.1%,

75.9%, followed by search engines & concentration of online information on the product with 80.4%, 70.4%respectively.

9. The units selling textile had its maximum contribution from the factor advertisement through magazines &newspapers and concentration of online information with 77%.

10. The units selling electronics had the promotional activities adopted to attract the consumer with 66% as thehighest which was closely followed by form of promotional activity.

Determinants

Concentration of online information

Level of success of banner advertisements

Ways adopted to promote sales

Project elements of the company

Forms of promotional activities

Promotional activities adopted to attractconsumers

Weights

7.483

10.544

29.932

19.728

15.646

16.667

Rank

VI

V

I

II

IV

III

Page 28




11. Units selling textile had concentration of onlineinformation as the highest with 34%. Beta value ofpromotional activities adopted to attract consumerswas the maximum with 72% for the units sellingjewellery.

12. Promotional activity was the independent variablewith highest beta value of 56% for the factor culture.

ConclusionThe most important element of the online marketingmix ie., the promotion was studied with six factors. Itwas clear form the analysis that most of the promotionalfactors contributed favourably towards the effectivenessof online marketing. Forms of promotional activitiescontributed favourably for all the five stratums. Levelof success of banner advertisements was ineffective forthe factor personality (69%) because the consumerswere not impressed by these advertisements.It was evident from the study that the factors of promotioncontributed more favourably than the other threeelements of the online marketing mix for all the stratumsin increasing the effectiveness of online marketing. Veryfew factors contributed unfavourably hence, promotionalmethods adopted in online marketing was very effectiveand helped in the improvement for the marketing activitiesthrough online.In online marketing a seller’s success depends uponthe promotional activity he adopts to attract theconsumers. In the digital world people were often carriedaway by the advertisements. Hence, it was veryimportant to feel the pulse of the consumer and studythe promotional factors in online marketing which revealedthe following results. Magazines & newspapers proved

to be the best promotional activity in online marketingwhich attracted the consumers, the success of bannerads was to a certain extent. Nearly half of the studyunits concentrated in general web marketing than inonline marketing. 3/4 of the study units used searchengines to promote their sales, and concentrated in theproduct information than the other 3 P’s of the marketingmix.It was found that the main form of presence ofcompanies on online marketing was a corporate website. A few of them were also doing advertising online.But it seems that online banners and other forms ofonline advertising had not gained popularity among thestudy units. The possible reasons for this may be that,there is still not much awareness about online marketingand the study units felt that it was better to advertisetheir website address offline in order to attract morevisitors.

Reference1. FICCI report. (2005, January). “ Consumer durable

goods destined for rural India” . Market survey, Factsfor you. 26.

2. (2005, January). “Global executive summaries, Theweb experience: Influencing

the online consumers’ behaviour”. MarketingMastermind, 59.

3. Iconocast Inc .(2000,February).“Web marketing”.Advertising and Marketing, 51.

4. UNCTAD’S E-commerce. (2005, August). “Thegrowth of the internet and e-commerce anddevelopment”. Facts for you, 25.



A STUDY ON BRAND PREFERENCE TOWARDS MASALA PRODUCTSWITH SPECIAL REFERENCE TO THANJAVUR CITY

1. Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

Abstract

The marketing concept was born out of the awareness that marketing starts with the determination of consumer wantsand ends with the satisfaction of those wants. The concept puts the consumer at both beginning and end of thebusiness. Consumer needs are the foundation for the economic operation of any country. The production anddistribution process depends on the consumer, on which total industrial and agricultural activity depends. It is aproven fact that business makes profit only when goods are consumed or services utilized. This presupposesconsumer’s existence. Business is entirely dependent upon the consumer not only for its survival but also for itsgrowth. Thus, the consumer assumes greatest significance in any developing or developed country as economicactivities centers around him. With special reference to Thanjavur city, it is to conclude that the preference for Masalaproduct is dominated. Because these brands are highly recommended, easy availability in the market and call forservices at short time. On the other hand the preference for other brand are very less because the manufacturer havenot satisfied the requirements of the consumers. This study concludes that the “Satisfied consumer may be a mosteffective Sales Promoter” for any manufacturer and hence the producers of Masala Products should concentrate onsatisfying the consumer needs.

Keywords: Buyer, Production, Expectation etc.,

K.Saranya Rani1

Introduction The term “Market” in its common usage is used to referthe place where the actual buying and selling take place.But the term “Market” doesn’t mean a particular marketplace in which things are bought and sold, but the wholeof any region in which buyers and sellers are in freeinteraction with one another that the prices of the samegoods tend to be equalized easily and quickly.The marketing concept was born out of the awarenessthat marketing starts with the determination of consumerwants and ends with the satisfaction of those wants.The concept puts the consumer at both beginning andend of the business.Consumer needs are the foundation for the economicoperation of any country. The production and distributionprocess depends on the consumer, on which totalindustrial and agricultural activity depends. It is a provenfact that business makes profit only when goods areconsumed or services utilized. This presupposesconsumer’s existence. Business is entirely dependentupon the consumer not only for its survival but also forits growth. Thus, the consumer assumes greatestsignificance in any developing or developed country aseconomic activities centres around him. Besides for thelast two decades there has been a tremendous and rapiddevelopment in product innovation, product line, pricingand promotional, tastes culture, etc. Of the consumer

have manifested the business environment and lead totransformation from sellers market to buyers market.People purchase products because they capable ofrealizing some benefits to the purchaser. A product isone which satisfies the needs of customer. From theeconomic point of view, a product consists of a bundle ofutilities involving various product features and accomplishingservices. These utilities are wanted by a set of tangible,physical and chemical attributes assembled in an easilyidentifiable form. The products for easy identity will havea descriptive name i.e. brand name.Scope of the StudyThe study aims at probing the satisfaction derived bythe user of various brand of masalas, which is measuredon the opinion gathered from, users of various brand ofmasala in Thanjavur district. The study will providenecessary details related to customer brand preferencetowards masala product which enables to understandthe market position and customer creditability.

Objectives of the Study• The Study the Socio-Economic factor of the

respondents.• To identify the brand of possessing the Masala

Product.• To find out the source of reference and the factors

influenced to purchase the masala brand.

Page 30




Research MethodologyData Collection:In order to meet out the objectives of this study the data was collected by both primary and secondary sources.Sample size:The sample size consists of one hundred and fifty respondents who own selected brands of motorcycles.

Sampling:Convenient sampling is adopted as the sampling method.

Tools of data collection:The tools employed for data collection is well structured questionnaire for respondents. The questionnaire hasdifferent questions that being about the various aspects of respondent’s behaviour and attitudes. From the answeredquestionnaire the preference opinion of the respondents about mileage, quality, appearance, driving comfort etc.,

Review of LiteratureHsee et., (2009) suggest that consumer preferences are developed based on emotional factors but he refers tocognitive factors such as the brand specifications to confirm his choices. Sixth, affective reactions need not dependon cognition: this characteristic is proven by the failure of consumer behaviour models depending on rationaltheories in providing comprehensive explanation of consumer choices.Aaker (2000) regarded brand awareness as a remarkably durable and sustainable asset. It provided a sense offamiliarity a sense of presence or commitment and substance and it was very important to recall at the time ofpurchasing process. Apart from the conventional mass media, there were other effective means to create awarenessviz., event promotions, publicity, sampling and other attention-getting approaches.Ramasamy et al (2005) indicated that, the buying behaviour is vastly influenced by awareness and attitude towardsthe product. Commercial advertisements over television was said to be the most important source of information,followed by displays in retail outlets. Consumers do build opinion about a brand on the basis of which variousproduct features play an important.

Table - 1 : Data Analysis And Interpretation Age Group of The Respondents

Source: Primary Data

InterpretationFrom the above table, it is clear that 17.33% of the respondents are belongs the age Group of below 25 years, 20%of the respondents are belongs the age group between 25-30 Years, 28.67% of the respondents are belongs the agegroup between 30 -35 years and 34% of the respondents are belongs the age group of above 35 years.

Table - 2 : Gender of the Respondents

S.NO

1

2

3

4

AGE Group

Below 25 Years

25 – 30 Years

30 -35 Years

Above 35 Years

Total

No. of Respondents

26

30

43

51

150

Percentage

17.33

20.00

28.67

34.00

100.00


InterpretationFrom the above table, it is concluded that 55.33% of the respondents are male and 44.67% of the respondents arefemale (Table : 3)

S.NO

1

2

Gender

Male

Female

Total

No. of Respondents

83

67

150

Percentage

55.33

44.67

100.00



Table - 3 : Educational Qualification of the Respondents

S.NO

1

2

3

4

Education

Iiiiterate

School Level

College Level

Professional

Total

No. of Respondents

41

49

20

40

150

Percentage

27.33

32.67

13.33

26.67

100.00


InterpretationFrom the above table, it is found that 27.33% of the respondents are illiterate, 32.67% of the respondents areeducated school level education, 13.33% of the respondents are Educated college level and 26.67% of the respondentsare educated professional level Education.

Table - 4 : Relationship between Age Group And Level of Satisfaction towards Price

S.No

1

2

3

4

HighlySatisfied

6

6

11

12

35

Dissatisfied

2

4

5

8

19

Total

26

30

43

51

150

HighlyDissatisfied

6

5

4

9

24

Age Group

Below 25 Years

25 – 30 Years

30 - 35 Years

Above 35 Years

Total

No Idea

2

5

8

12

27

Satisfied

10

10

15

10

45

Level of Satisfaction

Null Hypothesis (Ho): There is No Significant relationship between Age Group and Level of Satisfaction towards Price.Alternative Hypothesis (H1): There is a significant relationship

Table - 5 : Chi-Square Test

Factors

Age Group

Calculated X2 Value

8.623

Degree of Freedom

12

Hypothesis Accept / Reject

Accepted

Table Value

21.026

InferenceThe above table reveals that the calculated chi – square value (8.623) is less than theTable value (21.026). Hence the (H0) Null Hypothesis is accepted at 5% level of significance. So there is nosignificance relationship between Age Group Level of Satisfaction towards price.

Table - 6 : Relationship Between Educational Qualifications And Level of Satisfaction Towards Price

S.No

1

2

3

4

EducationalQualification

Illiterate

School Level

College Level

Professional

Total


HighlySatisfied

10

10

4

11

35

Dissatisfied

5

8

0

6

19

Total

41

49

20

40

150

HighlyDissatisfied

9

5

3

7

24

No Idea

8

11

5

3

27

Satisfied

9

15

8

13

45

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Null hypothesis (Ho): There is No Significant relationship between Educational Qualification and Level of Satisfaction towards Price.Alternative Hypothesis (H1): There is a significant relationship

Table - 7 : Chi-Square Test

InferenceThe above table reveals that the calculated chi – square value (21.155) is greater than the Table value (21.026).Hence the (H0) Null Hypothesis is rejected at 5% level of significance.So there is close significant relationship between Educational Qualification and Level of Satisfaction towards price.

Table - 8 : Relationship Between Monthly Income And Level of Satisfaction Towards Availability

S.No

1

2

3

4

HighlySatisfied

5

15

4

2

26

Dissatisfied

5

6

5

4

20

Total

41

49

20

40

150

HighlyDissatisfied

1

3

2

0

6

Monthly Income

Below Rs.10000

Rs.10000- 20000

Rs.20000-30000

Above Rs.30000

Total

No Idea

5

16

8

7

36

Satisfied

11

24

12

15

62


Null hypothesis (Ho): There is No Significant relationship between Monthly Income and Level of Satisfaction towards Price.Alternative Hypothesis (H1): There is a significant relationship

Table - 9 : Chi-Square TestFactors

Monthly Income

Calculated X2 Value

8.623

Degree of Freedom

12


Accepted

Table Value

21.026

Factors


Calculated X2 Value

21.155

Degree of Freedom

12


Rejected

Table Value

21.026

InferenceThe above table reveals that the calculated chi – square value (8.305) is less than the Table value (21.026). Hencethe (H0) Null Hypothesis is accepted at 5% level of significance. So there is no significant relationship betweenMonthly Income and Level of Satisfaction towards Availability.

Table - 10 : Relationship Between Age Group And Level Of Satisfaction Towards Quality

S.No

1

2

3

4

HighlySatisfied

3

2

2

3

10

Dissatisfied

0

4

4

4

12

Total

26

30

43

51

150

HighlyDissatisfied

3

1

7

2

13

Age Group

Below 25 Years

25 – 30 Years

30 - 35 Years

Above 35 Years

Total

No Idea

13

18

22

24

77

Satisfied

7

5

8

18

38




Null hypothesis (Ho): There is No Significant relationship between Age Group and Level ofSatisfaction towards Quality.Alternative Hypothesis (H1): There is a significant relationship (Table : 11)

Table - 11 : Chi-Square TestFactors

Age Group

Calculated X2 Value

24.217

Degree of Freedom

12


Rejected

Table Value

21.026

InferenceThe above table reveals that the calculated chi – square value (14.214) is greater than the Table value (21.026).Hence the (H0) Null Hypothesis is rejected at 5% level of significance.So there is no significance relationship between Age Group Level of Satisfaction towards Quality.

Suggestions• Majority of the respondents are satisfied with the price of the brand is high; hence the company may concentrate

with the price of the product.• Most of the respondents have no idea about the quality of the product; hence the company may give more aware

of quality of the product to the consumer.• The company’s manufacturing masala product should make a survey to know the expectations of the consumers

and produce the produce the product so as to attract more customers towards their brand.• It is suggested that selling quality of masala products with a reasonable price to suit the needs of low and

middle-income group, could boost the brand loyalty.

ConclusionAfter comparing the consumer preference for various brands of Masala products. With special reference to Thanjavurcity, it is to conclude that the preference for Masala product is dominated. Because these brands are highlyrecommended, easy availability in the market and call for services at short time. On the other hand the preferencefor other brand are very less because the manufacturer have not satisfied the requirements of the consumers.This study concludes that the “Satisfied consumer may be a most effective Sales Promoter” for any manufacturerand hence the producers of Masala Products Should concentrate on satisfying the consumer needs.

References1. Avasthi, g.p and Sharma .m (2000-01), information technology in banking challenges for regulator’s (xx1x (14)

.17 p2. R.vijiesh ,v.vijay anandh ,n.panchanatham 2011, technology management in banking –risk on altenative channels

– a global3. Porter,W.T(2005), User-Centred Designed and Marketing: online customer value,Published in ‘contemporary

research in E-marketing’,volume:2,by Idea Group publishin

Page 34




CORPORATE GOVERNANCE MECHANISMS IN INDIA

1. Assistant Professor, Department of Commerce, Bharathidasan University Constituent model college, Aranthanki, Pudukottai2. Assistant Professor, Department of Commerce, DDE, Alagappa University, Karaikudi

Abstract

Corporate governance includes the processes through which corporations' objectives are set and pursued in thecontext of the social, regulatory and market environment. Governance mechanisms include monitoring the actions,policies and decisions of corporations and their agents. Corporate governance is about maximizing shareholders'value, legally, ethically and on sustainable basis, ensuring fairness to every stakeholder. The objective of corporategovernance is to ensure the effectiveness and efficiency of operations, that is having sound internal controls, thereliability of financial reporting, that is having transparency and good disclosure practices and compliance with lawsand regulations. Regulators can facilitate the process by measures such as: enhancing the scope, frequency, qualityand reliability of information disclosures; promoting an efficient market for corporate control; restructuring or privatizingthe large public sector institutional investors; and reforming bankruptcy and related laws. In short, the key to bettercorporate governance in India today lies in a more efficient and vibrant capital market.

Key Words: Corporate Governance, Framework, OECD Principles.

B.Menaka1

IntroductionCorporate governance broadly refers to the mechanisms,processes and relations by which corporations arecontrolled and directed. Governance structures identifythe distribution of rights and responsibilities amongdifferent participants in the corporation (such as theboard of directors, managers, shareholders, creditors,auditors, regulators, and other stakeholders) and includethe rules and procedures for making decisions incorporate affairs. Corporate governance includes theprocesses through which corporations' objectives are setand pursued in the context of the social, regulatory andmarket environment. Governance mechanisms includemonitoring the actions, policies and decisions ofcorporations and their agents. Corporate governancepractices are affected by attempts to align the interestsof stakeholders.In contemporary business corporations, the mainexternal stakeholder groups are shareholders, debtholders, trade creditors, suppliers, customers andcommunities affected by the corporation's activities.Internal stakeholders are the board of directors,executives, and other employees. Much of thecontemporary interest in corporate governance isconcerned with mitigation of the conflicts of interestsbetween stakeholders. Ways of mitigating or preventingthese conflicts of interests include the processes,customs, policies, laws, and institutions which have animpact on the way a company is controlled. An importanttheme of governance is the nature and extent of corporateaccountability.

Objectives Of Corporate GovernanceGood governance is integral to the very existence of acompany. It inspires and strengthens investor'sconfidence by ensuring company's commitment to highergrowth and profits. It seeks to achieve followingobjectives:i. A properly structured Board capable of taking

independent and objective decisions is in place atthe helm of affairs;

ii. The Board is balanced as regards the representationof adequate number of non-executive andindependent directors who will take care of theinterests and well-being of all the stakeholders;

iii. The Board adopts transparent procedures andpractices and arrives at decisions on the strength ofadequate information;

iv. The Board has an effective machinery to sub-servethe concerns of stakeholders;

v. The Board keeps the shareholders informed ofrelevant developments impacting the company;

vi. The Board effectively and regularly monitors thefunctioning of the management team; and

vii. The Board remains in effective control of the affairsof the company at all times.

The overall endeavor of the Board should be to take theorganization forward, maximize long-term values andshareholders' wealth.

R.Ganapathi 2

1.



Elements of Good Corporate GovernanceGood governance is decisively the manifestation ofpersonal beliefs and values, which configure theorganizational values, beliefs and actions of its Board.The Board as a main functionary is primary responsibleto ensure value creation for its stakeholders. Theabsence of clearly designated role and powers of Boardweakens accountability mechanism and threatens theachievement of organizational goals. Therefore, theforemost requirement of good governance is the' clearidentification of powers, roles, responsibilities andaccountability of the Board, CEO, and the Chairman ofthe Board. The role of the Board should be clearlydocumented in a Board Charter. The following are theessential elements of good corporate governance:• Transparency in Board’s processes and

independence in the functioning of Boards. The Boardshould provide effective leadership to the companyand management for achieving sustained prosperityfor all stakeholders. It should provide independentjudgment for achieving company's objectives.

• Accountability to stakeholders with a view to servethe stakeholders and account to them at regularintervals for actions taken, through strong andsustained communication processes.

• Fairness to all stakeholders.• Social, regulatory and environmental concerns• Clear and unambiguous legislation and regulations

are fundamentals to effective corporate governance.• A healthy management environment that includes

setting up of clear objectives and appropriate ethicalframework, establishing due processes, clearenunciation of responsibility and accountability, soundbusiness planning, establishing clear boundaries foracceptable behavior, establishing performanceevaluation measures.

• Explicitly prescribed norms of ethical practices andcode of conduct are communicated to all thestakeholders, which should be clearly understood andfollowed by each member of the organization.

• The objectives of the company must be clearlydocumented in a long-term corporate strategyincluding an annual business plan together withachievable and measurable performance targets andmilestones.

• A well composed Audit Committee to work as liaisonwith the management, internal and statutory auditors,reviewing the adequacy of internal control andcompliance with significant policies and procedures,reporting to the Board on the key issues.

• Risk is an important element of corporate functioningand governance, which should be clearly identified,

analyzed for taking appropriate remedial measures.For this purpose the Board should formulate amechanism for periodic reviews of internal andexternal risks.

• A clear Whistle Blower Policy whereby theemployees may without fear report to themanagement about unethical behaviour, actual orsuspected frauds or violation of company’s code ofconduct. There should be some mechanism foradequate safeguard to employees againstvictimization that serves as whistleblowers.

Principles of Corporate GovernanceContemporary discussions of corporate governance tendto refer to principles raised in three documents releasedsince 1990: The Cadbury Report (UK, 1992), thePrinciples of Corporate Governance (OECD, 1998 and2004), the Sarbanes-Oxley Act of 2002 (US, 2002). TheCadbury and OECD reports present general principlesaround which businesses are expected to operate toassure proper governance. The Sarbanes-Oxley Act,informally referred to as Sarbox or Sox, is an attemptby the federal government in the United States to legislateseveral of the principles recommended in the Cadburyand OECD reports.• Rights and equitable treatment of shareholders:

Organizations should respect the rights ofshareholders and help shareholders to exercise thoserights. They can help shareholders exercise theirrights by openly and effectively communicatinginformation and by encouraging shareholders toparticipate in general meetings.

• Interests of other stakeholders: Organizations shouldrecognize that they have legal, contractual, social,and market driven obligations to non-shareholderstakeholders, including employees, investors,creditors, suppliers, local communities, customers,and policy makers.

• Role and responsibilities of the board: The boardneeds sufficient relevant skills and understanding toreview and challenge management performance. Italso needs adequate size and appropriate levels ofindependence and commitment.

• Integrity and ethical behaviour: Integrity should be afundamental requirement in choosing corporateofficers and board members. Organizations shoulddevelop a code of conduct for their directors andexecutives that promotes ethical and responsibledecision making.

• Disclosure and transparency: Organizations shouldclarify and make publicly known the roles andresponsibilities of board and management to providestakeholders with a level of accountability. They

Page 36




should also implement procedures to independentlyverify and safeguard the integrity of the company'sfinancial reporting. Disclosure of material mattersconcerning the organization should be timely andbalanced to ensure that all investors have access toclear, factual information.

Corporate Governance in IndiaThe concept of good governance is very old in India datingback to third century B.C. where Chanakya (Vazir ofParliputra) elaborated fourfold duties of a king viz. Raksha,Vriddhi, Palana and Yogakshema. Substituting the kingof the State with the Company CEO or Board of Directorsthe principles of Corporate Governance refers toprotecting shareholders wealth (Raksha), enhancing thewealth by proper utilization of assets (Vriddhi),maintenance of wealth through profitable ventures(Palana) and above all safeguarding the interests of theshareholders (Yogakshema or safeguard).Corporate Governance was not in agenda of IndianCompanies until early 1990s and no one would find muchreference to this subject in book of law till then. In India,weakness in the system such as undesirable stockmarket practices, boards of directors without adequatefiduciary responsibilities, poor disclosure practices, lackof transparency and chronic capitalism were all cryingfor reforms and improved governance. The fiscal crisisof 1991 and resulting need to approach the IMF inducedthe Government to adopt reformative actions for economicstabilization through liberalization. The momentumgathered albeit slowly once the economy was pushedopen and the liberalization process got initiated in early1990s.As a part of liberalization process, in 1999 theGovernment amended the Companies Act, 1956. Furtheramendments have followed subsequently in the year2000, 2002 and 2003. A variety of measures have beenadopted including the strengthening of certainshareholder rights (e.g. postal balloting on key issues),the empowering of SEBI (e.g. to prosecute the defaultingcompanies, increased sanctions for directors who donot fulfill their responsibilities, limits on the number ofdirectorships, changes in reporting and the requirementthat a ‘small shareholders nominee’ be appointed onthe Board of companies with a paid up capital of Rs. 5crore or more).The major corporate governance initiatives launched inIndia since the mid 1990s are:The CII CodeOn account of the interest generated by CadburyCommittee Report of UK, theConfederation of IndianIndustry (CII) took special initiative with the objective todevelop and promote a code of Corporate Governanceto be adopted and followed by Indian Companies both in

private and public sector, Banks and FinancialInstitutions. The final draft of the code was circulated in1997 and the final code called ‘Desirable CorporateGovernance Code’ was released in April 1998. TheCommittee was driven by the conviction that goodcorporate governance was essential for Indian Companiesto access domestic as well as global capital atcompetitive rates. The code was voluntary, containeddetailed provisions with focus on listed companies.Listed companies should give data on high and lowmonthly averages of share prices in a major stockexchange where the company is listed; greater detailon business segments, up to 10% of turnover, givingshare in sales revenue, review of operations, analysis ofmarkets and future prospects. Major Indian stockexchanges should gradually insist upon a corporategovernance compliance certificate, signed by the CEOand the CFO. If any company goes to more than onecredit rating agency, then it must divulge in theprospectus and issue document the rating of all theagencies that did such an exercise. These must be givenin a tabular format that shows where the company standsrelative to higher and lower ranking.Companies that default on fixed deposits should not bepermitted to accept further deposits and make inter-corporate loans or investments or declare dividends untilthe default is made good. The CII code is voluntary. Since1998, CII has been trying induce companies to disclosemuch greater information about their boards.Consequently, annual reports of companies that abideby the code contain a chapter on corporate governance.

Kumar Mangalam Birla Committee ReportWhile the CII code was well received by corporate sectorand some progressive companies also adopted it, it wasfelt that under Indian conditions a statutory rather thana voluntary code would be more meaningful.Consequently the second major initiative was undertakenby the Securities and Exchange Board of India (SEBI)which set up a committee under the chairmanship ofKumar Mangalam Birla in 1999 with the objective ofpromoting and raising of standards of good corporategovernance. The Committee in its Report observed “thestrong Corporate Governance is indispensable toresilient and vibrant capital market and is an importantinstrument of investor protection. It is the blood that fillsthe veins of transparent corporate disclosure and highquality accounting practices. It is the muscle that movesa viable and accessible financial reporting structure”.In early 2000, the SEBI Board accepted and ratified thekey recommendations of this committee and these wereincorporated into Clause – 49 of the Listing Agreementof the Stock Exchanges. (Discussed in detail in SessionXI & XII) These recommendations, aimed at providing



the standards of corporate governance, are divided intomandatory and non-mandatory recommendations. Therecommendations have been made applicable to all listedcompanies with the paid-up capital of Rs. 3 crore andabove or net worth of Rs.25 crore or more at any time inthe history of the company. The ultimate responsibilityof putting the recommendations into practice restsdirectly with the Board of Directors and the managementof the company.The report pointed out that the issue of corporategovernance involves besides share holders, all otherstakeholders. The committee’s recommendations havelooked at corporate governance from the point of view ofthe stakeholders and in particular that of shareholdersand investors. The control and reporting functions ofboards, the roles of the various committees of the board,the role of management, all assume special significancewhen viewed from this perspective.At the heart of committee’s report is the set ofrecommendations, which distinguish the responsibilities,and obligations of the boards and the management ininstituting the systems for good corporate governance.Many of them are mandatory. These recommendationsare expected to be enforced on listed companies forinitials disclosures. This enables share holders to know,where the companies are in which they have involved.The committee recognized that India had in place a basicsystem of corporate governance and that SEBI hasalready taken a number of initiatives towards raising theexisting standards.The committee also recognized that the Confederationof Indian Industries (CII) had published a code entitled“Desirable code of corporate of Governance and wasencouraged to note that some of the forward lookingcompanies have already reviewed their annual reportthrough complied with the code.

Report of Task ForceIn May 2000, the Department of Corporate Affairs (DCA)formed a broad based study group under thechairmanship of Dr. P. L. Sanjeev Reddy, Secretary ofDCA. The group was given the ambitious task ofexamining ways to “operationalize the concept ofcorporate excellence on a sustained basis” so as to“sharpen India’s global competitive edge and to furtherdevelop corporate culture in the country”. In November2000 the Task Force on Corporate Excellence set up bythe group produced a report containing a range ofrecommendations for raising governance standardsamong all companies in India. It also recommendedsetting up of a Centre for Corporate Excellence.

Naresh Chandra Committee ReportThe Enron debacle of 2001 involving the hand-in-gloverelationship between the auditor and the corporate client,

the scams involving the fall of the corporate giants in theU.S. like the WorldCom, Owest, Global Crossing, Xeroxand the consequent enactment of the stringent SarbanesOxley Act in the U.S. led the Indian Government to wakeup. A committee was appointed by Ministry of Financeand Company Affairs in August 2002 under thechairmanship of Naresh Chandra to examine andrecommend inter alia amendments to the law involvingthe auditor-client relationships and the role of independentdirectors. The committee made recommendations in twokey aspects of corporate governance: financial and non-financial disclosures: and independent auditing andboard oversight of management.

Narayana Murthy Committee ReportThe SEBI also analyzed the statistics of compliancewith the clause-49 by listed companies and felt that therewas a need to look beyond the mere systems andprocedures if corporate governance was to be madeeffective in protecting the interest of investors. The SEBItherefore constituted a committee under the chairmanshipof Narayana Murthy for reviewing implementation of thecorporate governance code by listed companies andissue of revised clause 49. Some of the majorrecommendations of the committee primarily related toaudit committees, audit reports, independent directors,related party transactions, risk management,directorships and director compensation, codes ofconduct and financial disclosures.

J. J. Irani Committee ReportThe Companies Act 1956 was enacted on therecommendations of the Bhaba Committee set up in1950 with the object to consolidate the existing corporatelaws and to provide a new basis for corporate operationin independent India. With enactment of this legislationin 1956 the Companies Act 1913 was repealed. The needfor streamlining this Act was felt from time to time asthe corporate sector grew in pace with the Indian economyand as many as 24 amendments have taken place since1956. The major amendments to the Act were madethrough Companies (Amendment) Act 1998 afterconsidering the recommendations of Sachar Committeefollowed by further amendments in 1999, 2000, 2002and finally in 2003 through the Companies(Ammendment) Bill 2003 pursuant to the report of R.D.Joshi Committee.After a hesitant beginning in 1980, India took up itseconomic reforms programme in 1990s and a need wasfelt for a comprehensive review of the Companies Act1956. Unsuccessful attempts were made in 1993 and1997 to replace the present Act with a new law. In thecurrent national and international context the need forsimplifying corporate laws has long been felt by thegovernment and corporate sector so as to make it

Page 38




amenable to clear interpretation and provide a frameworkthat would facilitate faster economic growth.The Government therefore took a fresh initiative in thisregard and constituted a committee in December 2004under the chairmanship of Dr. J. J. Irani with the task ofadvising the government on the proposed revisions tothe Companies Act 1956.The recommendations of theCommittee submitted in May 2005 mainly relate tomanagement and board governance, related partytransactions, minority interest, investors education andprotection, access to capital, accounts and audit,mergers and amalgamations, offences and penalties,restructuring and liquidation, and the like.

Central Coordination and Monitoring CommitteeA high powered Central Coordination and MonitoringCommittee (CCMC) co-chaired by Secretary,Department of Corporate Affairs’ and Chairman, SEBIwas set up by the Department of Corporate Affairs tomonitor the action taken against the vanishingcompanies and unscrupulous promoters who imsusedthe funds raised from the public. It was decided by thiscommittee that seven Task Forces be set up at Mumbai,Delhi, Chennai, Kolkata, Ahmedabad, Bangalore andHyderabad with Regional Directors / Registrar ofCompanies of respective regions as convener, andRegional Offices of SEBI and Stock Exchanges asMembers. The main task of these Task Forces was toidentify the companies, which have disappeared, or whichhave misutilised the funds mobilized from the investorsand suggests appropriate action in terms of CompaniesAct or SEBI Act.

National Foundation of Corporate GovernanceThe Ministry of Company Affairs has set up NationalFoundation for Corporate Governance (NFCG) inassociation with Confederation of Indian Industry (CII),Institute of Company Secretaries of India (ICSI) andInstitute of Chartered Accountants of India (ICAI). TheNFCG would focus on the following areas:• Creating awareness on the importance of

implementing good corporate governance practicesboth at the level of individual corporations and for theeconomy as a whole. The foundation would provide aplatform for quality discussions and debates amongstacademicians, policy makers, professionals andcorporate leaders through workshops, conferences,meetings and seminars.

• Encouraging research capability in the area ofcorporate governance in the country and providingkey inputs for developing laws and regulations, whichmeet the twin objectives of maximizing wealth creationand fair distribution of this wealth.

• Working with the regulatory authorities at multiplelevels to improve implementation and enforcement ofvarious laws related to corporate governance.

• Working in close co-ordination with the private sector,work to instill a commitment to corporate governancereforms and facilitate the development of a corporategovernance culture.

• Cultivating international linkages and maintaining theevolution towards convergence with internationalstandards and practices for accounting, audit andnon-financial disclosure.

• Setting up of 'National Centers for CorporateGovernance' across the country, which would providequality training to Directors as well as produce qualityresearch and aim to receive global recognition.

OECD Principles and IndiaUnited States and the United Kingdom comprehendstandards for corporate governance which took rootsthere and stretched to the other countries. The membersof Organization for Economic co-operation andDevelopment (OECD) took early initiatives to deal withgovernance issues. Equity markets in these countrieswere not especially strong but the investment in equitieswas on the ascendance. Subsequent to 1990 thechangeover from central planning to market forcedeconomies, predominantly the privatization of publicsector companies, and the need to make availablegovernance principles for the promising private sector,brought the subject of corporate governance to the centerstage.Due to outcome of 1997 economic and financial setback,Asian countries too became intensely involved in thesubject of corporate governance. It was understood thatdespite the fact that corporate management is vital whenit comes to investment, somewhat more important issuperior corporate governance. This has become all themore significant because globalization means, ineconomic expressions, that four pillars of the economyi.e. physical capital in terms of plant and machinery,financial capital in terms of foreign direct investment orinvestment in emerging capital markets, technology andlabour move across national borders freely.The age-old wisdom of vasudev kutambham has becomerelevant again and the world has turned into trulyborderless and a global village. This forced to put intopractice internationally acknowledged norms of corporategovernance standards initiate atmosphere in privatesector, public sector. The focal point of official effortsbrought out the OECD 'principles of CorporateGovernance, endorsed by OECD ministers in May 1999and subsequently revised in 2004. The doctrine arebased, for all intents and purposes, on the accessible



legal and regulatory preparations as well as the bestprevailing practices followed by market players in theOECD countries. Support for this OECD principles hasbeen reaffirmed on several occasions by diverse inter-Governmental groups and by• international organizationsas part of efforts to construct a sound architecture ofcorporate governance after the 1997 crisis.The OECD revised its set of guidelines of CorporateGovernance in the year 2004 pursuant to corporategovernance developments including corporate sandalsthat further focused the minds of Governments onimproving corporate governance practices. The newOECD principles agreed by OECD countries in April 2004reflects a global harmony vis-à-vis the critical importanceof good corporate governance in contributing toeconomic feasibility and strength. The Companies Act1956, and the Clause 49 of the listing agreement of SEBIAct to these principles and highlight the fact that IndiaInc. conforms to most OECD principles of corporategovernance (2004) in terms of governance, transparencyand disclosures.

Corporate Governance Framework in IndiaIndia has a well-established corporate governanceframework and it remained unaffected by the Asianfinancial crisis of the late 1990s. Indeed, the movetowards adopting good corporate governance practices;better financial and non-financial disclosures, and thepromotion of transparent and efficient markets in Indiahad built up well before the Asian debacle. The corporategovernance framework in India primarily consists of thefollowing legislations and regulations.The Companies Act, 1956: Companies in India, whetherlisted or unlisted, are governed by the Companies Act.The Act is administered by the Department of CompaniesAct (DCA). Among other things, the Act deals with rulesand procedures regarding incorporation of a company;prospectus and allotment of ordinary and preferenceshares and debentures; management and administrationof a company; annual returns; frequency and conduct ofshareholders’ meetings and proceedings; maintenanceof accounts; board of directors, prevention ofmismanagement and oppression of minority shareholderrights; and the power of investigation by the government,including powers of the CLB.The Securities Contracts (Regulation) Act, 1956: Itcovers all types of tradable government paper, shares,stocks, bonds, debentures, and other forms ofmarketable securities issued by companies. The SCRAdefines the parameters of conduct of stock exchangesas well as its powers.The Securities and Exchange Board of India (SEBI)Act, 1992: This established the independent capitalmarket regulatory authority, SEBI, with the objective to

protect the interests of investors in securities, andpromote and regulate the securities market.The Depositories Act, 1996: This established shareand securities depositories, and created the legalframework for dematerialization of securities.Listing Agreement with stock exchanges: Thesedefine the rules, processes, and disclosures thatcompanies must follow to remain as listed entities. Akey element of this is Clause 49, which states thecorporate governance practices that listed companiesmust follow.Both DCA and SEBI have been conferred investigativepowers. Listed companies in India fall under the dualjurisdiction of the DCA and SEBI on issue related tocorporate governance. While this may not hamper theability to pursue key corporate governance objective, itresults in overlap of jurisdiction on one hand, andadditional compliance costs for companies on the other.Regulatory authorities, particularly SEBI, have done anexcellent job. The rules and regulations made by SEBIto regulate and monitor the capital market are at parwith international standards. However regulatoryauthorities do suffer from lack of more effective powersas well as shortage of key Qualified Personnel.

ConclusionCorporate governance is about maximizing shareholders'value, legally, ethically and on sustainable basis,ensuring fairness to every stakeholder. The objective ofcorporate governance is to ensure the effectiveness andefficiency of operations, that is having sound internalcontrols, the reliability of financial reporting, that is havingtransparency and good disclosure practices andcompliance with laws and regulations. Regulators canfacilitate the process by measures such as: enhancingthe scope, frequency, quality and reliability of informationdisclosures; promoting an efficient market for corporatecontrol; restructuring or privatizing the large public sectorinstitutional investors; and reforming bankruptcy andrelated laws. In short, the key to better corporategovernance in India today lies in a more efficient andvibrant capital market.

References:1. Ashbaugh-Skaife, H., D. Collins, W. and LaFond.

R., (2004), “Corporate Governance and the Cost ofEquity Capital”, Working Paper, Social ScienceResearch Network. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=639681.

2. Becht, M., Bolton, P., Roell, A. (2002), “CorporateGovernance and Control”, ECGI Working PaperSeries in Finance No 02/2002.

3. Balasubramaninan, N., (2014), “StrengtheningCorporate Governance in India A Review of Legislative

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and Regulatory Initiatives in 2013-14”, W.P. No.2014-06-04, Indian Institute of Management, Ahmedabad.

4. Chung, K. H., Elder, J. and Kim, J., (2010),“Corporate Governance and Liquidity”, Journal ofFinancial and Quantitative Analysis, 45: pp. 265-291.

5. Daily, C. M. and Dalton, D. R., (1992), “TheRelationship between Governance Structure andCorporate Performance in Entrepreneurial Firms”,Journal of Business Venturing, 7: pp. 375-386.

6. Gompers, P., Ishii, J. and Metrick, A., (2003),“Corporate Governance and Equity Prices”, TheQuarterly Journal of Economics, 118: pp. 107-115.

7. Ho, C. K., (2005), “Corporate Governance andCorporate Competitiveness: An InternationalAnalysis”, Corporate Governance: An InternationalReview, 13(2): pp.211-253.

8. La Porta, R., Lopez, F. S., Shleifer, A. and Vishny,R., (2000), “Investor Protection and CorporateGovernance”, Journal of Financial Economics, 58:pp. 3-27.

9. Mitra, Meera, (2007), “It’s only Business: India’sCorporate Social Responsiveness in a GlobalizedWorld”, Oxford University Press, New Delhi.

10. Pagano, Marco, and Paolo F. Volpin, (2005), “ThePolitical Economy of Corporate Governance”,American Economic Review, 95(4): pp. 1005–1030.

11. Prashant Mittal (2000), “Corporate Governance”,Prentice Hall, London.

12. Shankar, Nivedita, (2013), “New Regime of CorporateGovernance: Heading towards Hung Companies,Parts I and II”, www.indiacorplaw.blogspot.in

13. Shleifer, A. and Vishny, R., (1997), “A Survey ofCorporate Governance”, Journal of Finance, 52: pp.737-783.



A STUDY ON LABOR FORCE PLANNING IN PLASTO METALCASTENGINEERING INDUSTRIES, THIRUVERUMBUR.

1.Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

Abstract

Labor force planning, Manpower planning and Human resource planning are synonyms. Labor or manpower orHuman resource may be thought of as the total knowledge, skills, creative abilities, talents and aptitudes of anorganization’s workforce, as well as the values, attitudes and benefits of an individual involved. Planning induces alarge element of utilization of resources, particularly any critical and limited resources required to achieve specificbusiness objectives or to enhance over all capability. . The analysis clearly shows that labor force planning plays amajor role in transfer of an employee. The study helps to make the HR planning more effective as it’s reflects the viewsand expectations of the employees. The data was collected among 50 employees.

Keywords: Labor force, Potential, Employees, Attitude and Skill.

P.Priya1

IntroductionPlanning the right man for right job and developing himinto effective team member is an important function ofevery manager. It is because HR is an importantcorporate asset and performance of organizationdepends upon the way it is put in use. Man powerplanning is a deliberate strategy for acquisition,improvement and preservation of enterprise humanresources. It is a managerial Function aimed atcoordinating the requirement, for and availability ofdifferent types of employees. This involves ensuring thatthe organization has enough of right kind of people atRight time. Manpower planning should be an integralpart of business planning. The planning process definesprojected changes in the types of activities carried outby the organization and the scale of those activities. Itidentifies the core competencies required by theorganization to achieve its goals. Human resourceplanning interprets people requirements in terms of stallsand competencies.Statement Of The Problem• The success of every business organization depends

upon the employees. The employees performanceis must to improve the company as well as itsproduction.

• A well planned and executed training programme canprovide the higher productivity, better quality of work,cost reduction, proper training can develop positiveattitude among employees.

• The study is undertaken to help the management tofind out factors which are responsible for labor forceplanning and how it improves productivity.

Objectives of The Study• To find the Socio-demographic characteristics of the

respondents.• To access the effectiveness of HR planning in the

provision of required manpower in PlastoMetalcastengineering Industries.

• To find out the significance of training programme onthe employees job in PlastoMetalcast EngineeringIndustries.

• To forecast the future requirements of manpower inPlastoMetalcast Engineering Industries.

• To anticipate redundancies and avoid unnecessarydismissals in PlastoMetalcast Engineering Industries.

Review Of LiteratureThe review of available literature and studies is the basisfor further research. It is worth to review the relevantliteratures before during a research study. A brief outlineof various reports is exhibited below.Holt uses a quadratic cost model that allows a closedform solution to be developed and finds that optimalstaffing levels are based on the weighted valves offorecasted demand. Holt’s quadratic cost model isconverted to a linear cost model in Haussmann andHess (1960) and solved as an Lp. The holt model is alsoextended in Ebert (1976) with the inclusion of time varyingproductivity.Gaiman and Thompson (1984) Develop a Model thatlooks at an organization in terms of cohorts (i.e)employees with the same length of service, using anobjective function that measures the “effectiveness” ofthe organization.

Page 42




Grinold develops a stochastic model motivated by thedemand for navalavitors (Grinold 1976).Anderson (2001)develops a model where demand is driven by acontinuous non stationary seasonal process mean toapproximate a business cycle.Results and Discussion

Table - 1 : Effective Function of Labour ForcePlanning In The Company

Interpretation:From the above table shows that 40 % of the respondentsfall in the category of agree, 36% of the respondents fallin the category of strongly agree, 10% of the respondentsfalls in the category of neutral, 8% of the respondentsfall in the category of disagree and remaining 6% of therespondents fall in the category of strongly disagree witheffective function of labor force planning.

Table - 2 : Placement Decision

No. ofRespondents

18

20

5

4

3

50

Percentage

36

40

10

8

6

100

ManpowerPlanning

Strongly agree

Disagree

Neutral

Disagree

StronglyDisagree

Total

S.No

1

2

3

4

5

Interpretation :From the above table shows that 54% of the respondentsfall in the category of agree, 24% of the respondents fallin the category of Strongly agree, 10% of the respondentsfall in the category of neutral, 8% of the respondents fallin the category of disagree and remaining 4% of therespondents fall in the category of Strongly disagree withplacement decision.

Findings• Majority (44%) of the respondents are agreed with

the gap in filling the vacancies.

• Majority (58%) of the respondents are agreed withthe reduction of labour turnover through HR planning

• 48% of the respondents are agreed with thedependency of HR planning succession.

• 52% of the respondents are agreed with the necessityof HR planning arises only in the event of businessexpansion.

• 40% of the respondents are agreed with theinvolvement of training personal in HR planningprocess.

Suggestions• It is suggested that the organization should give

proper training to the employees before they aregetting promotion.

• The organization should fill up the vacanciesimmediately to avoid over burden to the employees.

• It is suggested that the organization should giveperiodic job rotation based on HR planning.

• It is suggested that the organization should retainthe employees through proper labor force planning.

• It is suggested that the PlastoMetalcast industriesshould conduct interview to access the employee’spotentials.

• The organization can access the workers suggestionin order to improve the labor force planning.

Conclusion“People Are The Only Resources That Can SynergizeAnd The Only Factor Is Unique In An OrganizationCannot Be Duplicated By Competition”The Study Entitled “A Study On Labor Force PlanningIn Plasto Metalcast Engineering Industries,Thiruverumbur” was conducted with the chief aim ofanalyzing the manpower is done effectively in thecompany for this study both primary and secondary datawas collected and those data was analyzed andinterpreted to give suggestions to the company. Theanalysis clearly shows that manpower planning plays amajor role in transfer of an employee. The study helpsto make the labor force planning more effective as it’sreflects the views and expectations of the employees.

ReferencesBooks• ASWATHAPPA.K. Human Resource and Personnel

Management Third Edition, Tata McGrew – HillPublishing Company Limited – New Delhi, 2003.

• KOTHARI.C.R. Research Methodology New AgeInternational Publishers Second Edition – 2004.

• MAMORIA.C.B. Personnel Management, TwelfthEdition, 2000 Himalaya Publishing House.

• TRIPATHI.P.C. Personnel Management and IndustrialRelation First Edition, Sultan Chand & SonsEducational Publisher – New Delhi 2002.

No. ofRespondents

12

27

5

4

2

50

Percentage

24

54

10

8

4

100

PlacementDecision

Strongly agree

Disagree

Neutral

Disagree

StronglyDisagree

Total

S.No

1

2

3

4

5



BUYERS’ BEHAVIOUR FOR PASSENGER CARS IN TAMILNADUWITH REFERENCE TO THANJAVUR DISTRICT

1. Assistant Professor, Department of Commerce, Bharath College of Science and Management, Thanjavur.

Abstract

Now a day, car has become a necessity and forms a part of life of the middle class people. Therefore, there is asignificant scope to examine the buyers’ behaviour for passenger cars. The study is restricted to Thanjavur district inTamilnadu, which is economically the developing district, due to their increasing purchasing power; the people of thisdistrict have started to buy cars for business or personal use or the prestige and as a status symbol. The study willhighlight the emerging trends in the growth of passenger car marketing and buyers behaviour for passenger cars inthe global competitive era with numerous models with high-tech cars. The study will also help the passenger carmanufacturer who ascertains the exact demand and their necessary models expected by the customers. Further, itsuggests the government in formulating and enforcing regulatory and legal reforms in the automobile sector, andthus achieves its aim of “providing a standard of living”. So the study is mainly concerned with buying behaviour forpassenger car with special reference to Thanjavur District.

Dr.N.Santhoshkumar1

IntroductionThe Indian passenger car industry has been on thecontinuous growth trajectory in the recent past aided bydifferent contributing factors of national developmentnamely robust economic activity, increasedenvironmental regulations, emerging organized retailindustry, government’s increased focus on ruraldevelopment, and development of infrastructure includingroads supported by availability of funds for new projectsas well as for easy vehicle financing for prospectivebuyers. The industry seems to be breaking out of itsconventional cyclical trends and the different size of cars.The passenger car segment has exhibited robust growthin production and sales over the last few years. Themultiplied growth of the same today, in many ways,reflects the psychographics and demographics of thecar purchasing population in India. As such, for manyyears, passenger cars have accounted for a major partof the revenue of the fast expanding passenger carmarket. However, the best thing about the demand forsmall cars is that there are upgrades possible even inthis segment attending to the mature levels that theIndian car industry has reached. Further, Indianconsumers now want the latest technological andfunctional features in such cars and are not ready towait for long to get the latest models from foreign carmanufacturer as they did in the past. Due to variouschanges in the Indian economic scenario, India is oneof the most promising of the world economies and iswell on its way to becoming a global economicpowerhouse in about a decade. It is also one of the

fastest and most exciting automobile markets in theworld. It is not surprising at all that almost every globalautomobile manufacturer is today keen on entering theIndian market. Demand in the passenger car segmentwill drive up the overall sale of passenger cars within thenext two years; production capacity is expected to betwice the total demand for cars. With the passenger carsegment acquiring stability in terms of prices, the actionis shifting to the mid-size car segment. Sales in thissegment will pick up as new models come in and incomelevels rise but still it will take some time for its sales tocome anywhere close to the “economy segment”.

Review Of LiteratureDr. I Sathyasundaram (2011) in his article “Car marketRide the high tide”, revealed that the passenger car wasmaking a mark in the rural market, mainly because ofan expensive distribution and financing net work ofcustomer.Laldinliana (2012) made a study on consumer behaviortowards two-wheeler and four wheelers - A study on ruraland urban Mizoram. The study revealed that the urbanrespondents depicted a more luxurious consumptionpattern for both the two-wheeler and four wheelersegments. Also, found that promotion as the mostimperative buying factor and as per four-wheeler isconcerned after sales service as the single mostimportant buying factor.Balasubramani et al (2013) in their research articletitled as “An Empirical Study on Consumer Preferencetowards Hyundai Passenger cars in Salem City” revealed

Page 44




that there is a highly significant association betweenthe Model and source of information. Further, there ishighly significant association between Model and sourceof advertisement. They also concluded that there is ahighly significant association between the Model andMode of purchase and there is a highly significantassociation between the Model and Opinion about theprice of multi utility vehicle.Shailesh K. Kaushal (2014) in his research article titledas “Confirmatory factor analysis: An empirical study ofthe four- wheeler passenger car buyer’s purchasingbehavior” indicated that the safety & security consciousbuyers items form a first factor while some other factorsquality conscious buyers, performance consciousbuyers, value conscious buyers and technologyconscious buyers formed the second, third, fourth andfifth factor respectively.

Research GapThe review of related literature regarding the topic ofbuying behaviour for passenger cars are analysed fromdifferent sources. From the analysis of the review ofliterature, it is found that all the studies have attemptedto examine the consumer behaviour of only selectedbrand of car and with the study of only the pre-purchasebehavior. However, no attempts have been made to clearstudy in the buyers’ behaviour for passenger car. Sothis was identified as research gap after analyzing allthe review of related literature. Hence, in this study aserious attempt have been made to study the buyers’behaviour for passenger car with special reference toThanjavur District.

Objectives Of The Study• To study the existing practice and to ascertain the

overview of Indian Auto mobile Industry.• To analyse the level of satisfaction of buyers.• To suggest various measures based on the findings

for improving buying behaviour of passenger cars inthe study area.

Hypotheses of The StudyThe following hypotheses are framed and tested in thepresent study.• There is a significant relationship between level of

satisfaction towards using passenger car andselected independent variables.

• Level of satisfaction towards using passenger car ispositively associated with the influence on purchaseof passenger car.

SamplingBoth primary and secondary data are used in the studyfor analysis purpose. For collecting primary data, fieldsurvey technique was employed in Thanjavur district. Awell-framed questionnaire was also used to collect theprimary data. In the present study, stratified randomsampling procedure has been adopted. It is decided tohave a sample size of 450, which is 20 per cent of theowners of passenger cars from the study area.

Multiple regression analysis – Level of influenceIn order to measure the interdependence of independentfactors and their level of influence towards purchase ofpassenger car, the results have been subjected tomultiple regression analysis. The results of multipleregression analysis are shown in following (Table : 1)

Table – 1 : Multiple regression analysis

Variables

(Constant)

Gender

Age


Occupation

Monthly FamilyIncome

Marital Status

Family size

Nature of family

B

0.520

-0.018

0.915

-0.045

0.099

0.048

-0.200

-0.047

0.035

Std.Error

0.160

0.041

0.015

0.017

0.024

0.017

0.037

0.023

0.031

Sig.

NS

1

1

1

1

1

5

NS

Standardizedcoefficients

Beta

-0.007

0.919

-0.042

0.123

0.083

-0.086

-0.035

0.017

Unstandardized coefficientsT

-0.434

59.445

-2.720

4.109

2.816

-5.417

-2.028

1.140

S.No

1

2

3

4

5

6

7

8



9

10

11

12

13

14

Wealth Position

Period of using thecar

Purpose of using thecar

Type of car using

Model of car

Fuel Method

-0.010

0.052

0.023

0.263

0.014

0.082

0.016

0.024

0.017

0.024

0.004

0.020

-0.009

0.065

0.020

0.332

0.048

0.065

-0.610

2.185

1.348

10.799

3.208

4.083

NS

5

NS

1

1

1

R-Value

0.897

R2–Value

0.804

Degree of freedom–V1

14


885

F Value

260.05

Significance

1 per centlevel

The multiple linear regression co-efficient (dependent variable) is found to be statistically good fit as R2 is 0.804. Itshows that independent variables contribute about 80.4 per cent of the variation in the level of influence towardspurchase of passenger car and this is statistically significant at 1% level and 5% level respectively. The tableindicates that the co-efficient of age, occupation, and monthly family income, period of using the car, type of carusing, model of car and fuel method are positively associated with the level of influence. On the other hand, the co-efficient of educational qualification, marital status and family size are negatively associated. Further, it is indicatedthat the contribution of age, occupation, monthly family income, period of using the car, type of car using, model ofcar and fuel method are statistically significant implying that their level of influence towards purchase of passengercar is stronger than the other variables. Thus from the above analysis, the following observation could be made. Thelevel of influence towards purchase of passenger car is positively associated with their age, occupation, monthlyfamily income, and period of using the car, type of car using, model of car and fuel method in the study area.

Multiple regression analysis – Level of satisfactionIn the following analysis, the relationship between the level of satisfaction perceived among the passenger carusers and fourteen independent factors were studied. It was found that out of fourteen variables, twelve factors wereclosely associated with the level of satisfaction of the selected sample respondents.

Table – 2 : Multiple regression analysis

Variables

(Constant)

Gender

Age


Occupation

Monthly FamilyIncome

Marital Status

Family size

Nature of family

Wealth Position

Period of using thecar

B

1.588

0.009

0.926

0.036

0.053

0.160

0.177

-0.021

0.103

0.037

0.196

Std.Error

0.252

0.035

0.013

0.014

0.014

0.032

0.032

0.020

0.017

0.013

0.065

Sig.

-

NS

1

5

1

1

1

NS

1

1

1

Standardizedcoefficients

Beta\

-

0.003

0.941

0.033

0.093

0.130

0.077

-0.016

0.156

0.036

0.103

Unstandardized coefficientsT

6.296

0.248

70.473

2.509

3.698

5.054

5.616

-1.045

5.998

2.746

3.034

S.No

1

2

3

4

5

6

7

8

9

10

Page 46




R-Value

0.924

R2–Value

0.854


14


885

F Value

370.58

Significance

1 per centlevel

11

12

13

14

Purpose of using thecar

Type of car using

Model of car

Fuel Method

0.037

-0.085

0.007

-0.039

0.015

0.026

0.004

0.017

0.032

-0.110

0.026

-0.032

2.472

-3.317

2.000

-2.294

5

1

5

5

The multiple linear regression co-efficient (dependent variable) is found to be statistically good fit as R2 is 0.854. Itshows that independent variables contribute about 85.4 per cent of the variation in the level of satisfaction amongthe Passenger car users, this is statistically significant at 1 per cent level, and 5 per cent level respectively. Thetable indicates that the co-efficient of age, educational qualification, occupation, monthly family income, maritalstatus, nature of family, wealth position, period of using the car, purpose of using the car and model of car arepositively associated with the level of satisfaction. On the other hand, the co-efficient of type of car using and fuelmethod are negatively associated. Further, it is pointed out that the contribution of age, educational qualification,occupation, monthly family income, marital status, nature of family, wealth position, period of using the car, purposeof using the car and model of car are statistically significant implying that their influence on the level of satisfactiontowards using passenger car is stronger than the other variables. Thus from the above analysis, the followingobservation could be made. The level of satisfaction perceived by the passenger car users is positively associatedwith their age, educational qualification, occupation, monthly family income, marital status, nature of family, wealthposition, period of using the car, purpose of using the car and model of car in the study area.

Rotated Component MatrixThe rotated component matrix is discussed in the following table. After a factor solution has been obtained, in whichall variables have a significant loading on a factor, the researcher has attempted to assign some meaning to thepattern of factor loadings. Variables with higher loadings are considered more important and have greater influenceon the name or label selected to represent a factor. Researcher has examined all the underlined variables for aparticular factor and has placed greater emphasis on those variables with higher loadings to assign a name or labelto a factor that accurately reflected the variables loading on that factor. The names or labels are not derived from orassigned by the factor analysis computer programme. Instead, the label is intuitively developed by the factoranalyst based on its appropriateness for representing the underlying dimension of a particular factor. All six factorshave given appropriate names based on the variable represented in each case (Table : 3)

The above table shows the rotated component matrix, in which the extracted factors are assigned a new namingrelated together. From the above table it is noted that all the loading factors, which are having the loading value lessthan 0.5, are rejected from the analysis.

Major Findings• Factor 1 is the most important factor, which explained 22.323 of the variation. The factors as ’Seating Space

(CF1-0.77)’, ‘Leg Space (CF2-0.87)’, ‘Boots Space (CF3-0.85)’, ‘Air Condition (CF4-0.85) and ‘Parking Convenience(CF5-0.82)’ are highly correlated with each other. These statements reflect comfort of passenger car and therefore,the researcher names this segment as ‘Comfort’ consciousness of passenger car users.

• The second kind of factors explained 8.484 of the variances. In this segment, the researcher has taken the fiveimportant variables such as ‘Engine power (SF1-0.82)’, ‘Road Grip (SF2-0.74)’, ‘Safety features (SF3-0.60)’,‘Alloying Wheels (SF4-0.79)’ and ‘Brake condition (SF5-0.82)’. These statements reflected consciousness tosafety of passenger car and hence the researcher has named as ‘Safety’ consciousness of passenger carusers.

• The third factor explained 7.480 of the variations. The extracted statements are ‘Pick up (TF1-0.80)’, ‘Audiosystem (TF2-0.90)’, ‘Power Windows (TF3-0.95)’, ‘Centre lock (TF4-0.87)’, ‘ABS Safety (TF5-0.83)’ and ‘Powersteering (TF6-0.85)’ and these statements indicate the technological advancement provided in passenger car.Hence, the researcher named this segment as ‘Technology’ consciousness of passenger car users.



Table – 4 : Rotated component matrix

No.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Factors

CF1

CF2

CF3

CF4

CF5

SF1

SF2

SF3

SF4

SF5

TF1

TF2

TF3

TF4

TF5

TF6

QF1

QF2

QF3

AF1

AF2

AF3

O1

O2

O3

O4

O5

O6

F1

0.77

0.87

0.85

0.85

0.82

F5

0.89

0.94

0.81

F7

0.40

F8

0.31

F10

0.34

0.21

F2

0.82

0.74

0.60

0.79

0.82

F3

0.80

0.90

0.95

0.87

0.83

0.85

F4

0.84

0.94

0.84

F9

0.45

F6

-0.43

• The fourth factor explained 7.436 of the variations. The extracted statements are ‘Low fuel consumption (QF1-0.84)’, ‘Lighting Power (QF2-0.94)’ and ‘Brand Image (QF3-0.84)’ and these statements indicate the quality ofpassenger car. Hence, the researcher has named this segment as ‘Quality’ consciousness of Passenger carusers.

• The fifth factor explains 6.155 of the variations. The extracted statements are ‘Choices of Colour (AF1-0.89)’,‘Styles (AF2-0.68)’ and ‘Look and Comfort (AF3-0.81)’ and these statements indicate that the Aesthetic behaviorof passenger car. Hence, the researcher has named this segment as ‘Aesthetic’ consciousness of Passengercar users.

v The sixth, seventh, eighth, ninth and tenth factors are explained 5.407, 4.488, 4.180, 3.931 and 3.919 of thevariations. In these factors, loading values are very less i.e., less than 0.5 and hence the variables are rejectedfrom the analysis.

Page 48




ConclusionBuyer behaviour mainly depends on human behaviour that goes in making purchase decisions understanding of thebuying behaviour enables a marketer to take marketing decision, which are compatible with its consumer needs.The growth in the population of India and the increasing number of middle class buyers has attracted the attentionof car manufacturers and marketers. The passenger car marketers who study the behaviour of buyers should caterto their needs, and then only their business will be a great success. Realizing the importance of passenger carindustry in the present economic situation, the researcher has analysed the behaviour of buyers related to passengercars in Thanjavur District of Tamilnadu. From the study, it is found that majority of the respondents in entire taluksof Thanjavur district prefer to buy the following model of passenger cars such as Tata, Toyota, Hindustan, Ford,Benz and Nissan. So, Passenger car manufacturer should concentrate on the production of large number of theabove cars demanded largely. In addition, it should introduce new technological improvements in the manufacture ofcars other than the above models.

References1. Commuri S. and Gentry., Opportunities for Family Research in Marketing, Academy of Marketing Science

Review, Pp. 1-34, 2000.2. Kaur P. and Singh R., Marketing Science Review, Vol. 8, No. 2, Pp. 12-34, 2006.3. Jain P.C. and Bhatt M., Consumer behaviour in Indian context, S. Chand, New Delhi, 2004.4. Foxall G.R., Consumer Behaviour: A practical guide, R.P.A. (Books), England.5. Kotler., Marketing Management Analysis, Planning, Implementation, and Control, 3rd ed., Englewood Cliffs,

N.J.: Prentice-Hall.



A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT INE-MARKETING

1. Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur2. Assistant Professor, Department of commerce, H.H .The Rajah’s college (Autonomous),Pudukottai.

Abstract

Perspective of customer relationship management is database marketing emphasizing the promotional aspects ofmarketing linked to database efforts.CRM only as customer relation in which a variety of after marketing tactics isused for customer bonding or staying in touch after the sale is made. The theme of all CRM and relationshipmarketing perspectives is its focus on co-operative and collaborative relationships between the firm and its customersand other marketing sectors.CRM is an information industry term for methodologies, software and usually internetcapabilities that help an enterprise manage customer relationships is organized.CRM is refers and identify how eachindividual customer defines quality and then designing service strategy for each customer based on these individualrequirements and expectations and identify potential problems quickly, before customers occurs, howto maintainrelationship with customers.CRM is not only pure business but also ideate strong bonding within people.Developementof these type of bonding drives the business to new levels of success. Once this personal and emotional linkage isbuilt, it is very easy for any organization to identify the actual needs of customer and help them in better way. In thisstudy analysis are more sophisticated strategies involved in implementing the customer relationship management,the more strong and fruitful in the business.

K.Nithya Devi1

IntroductionCRM is an information industry term for methodologies,software and usually internet capabilities that help anenterprise manage customer relationships in anorganised way. An enterprise might build a databaseabout its customers that described relationships insufficient detail so that management sales people,people providing service and perhaps that customerdirectly could access information, match customer needswith product plans and offerings, remind customer ofservice requirements, know that other products acustomer had purchased and so forth. The essence ofthe information technology revolution and in particularthe world wide web is the opportunity to build betterrelationships with customers than has been previouslypossible in the world. By combining the abilities torespond directly to customer results and to provide thecustomer with a highly interactive, customizedexperience, companies have a greater ability today toestablish nature and sustain long-term customerrelationship into greater profitability by increasing repeatpurchase rates and reducing customer acquisition costs.Traditionally marketers have been trained to acquirecustomers, either new ones who have not bought theproduct category before or those who are currentlycompetitors customers. This has required heavy of massadvertising and price-oriented promotions to customersand channel members.Today, the none of the

conversation has changed from customer acquisition toretention. The good thought experiment for an executiveaudience is to ask them how much they spend and focuson acquisition versus retention activities.

Statement of Problem• The purpose of CRM is to increase customers

satisfaction, improve customer perception of qualityservice quality and increase loyalty.

• CRM applied correctly leads to customers loyaltyand loyalty customers are usually more preferable.

• At times, costs become the driving factors in outsourcing CRM systems and not the vendor reputation.

Objectives of The Study• To identify how each customer defines quality and

then design a service strategy for each customerbased on these individual requirement andexpectations.

• To identify potential problems quickly before customeroccur.

• To use internet cookies to track customer interestand personalize product offerings.

• To gain knowledge about consumer behaviour.• To know, the grievances among the customers about

product and services.

Dr.R Sathru Sangaravelsamy2

Page 50




Research MethodologyThe research design followed for this research study isdescriptive research design where we find a solution toan existing problem. The problem of this study is findingthe effectiveness of CRM in E-marketing.

Sample Method And Sample SizeThe researcher used convenience samplingtechniques(i.e.) table method and selected 50 samples.

Sources of DataThe data was collected from primary data and secondarydata.

Scope of The StudyThe study is about CRM in E-marketing it is veryimportant because it plays a vital role in the E-marketingand its development.• To find out the views of customers.• It shows the various reasons for improving the product

quality.• It help to identify the important factors influencing in

the E-marketing.

Limitations of The Study• The research is conducted only by considering small

universe.• Limited period study.

Review of LiteratureAnton.J., 1996 CRM, E-CRM and customer satisfactionor customer prentice Hall, Newyork. Satisfaction andloyalty. Anton,J. And M.Hoeck, 2002.E-businesscustomer been conducted that concatenates the threevariable service. The Anton pree, santa, Monica, CA.CRM as a past experience with the companycomprehensive business and marketing strategy thatone of the reasons why companies invest on E-CRMintegrates technology, a process and all businessactivities is that, it improves customer loyalty andsubsequently around the customer helps in retainingcustomers by increasing customer. Now a daysorganizations implement customer satisfaction.Porter,W.T User-centred design and marketing(2013)According to them this phenomenon can be expectedin simple equation as value equals prescribed benefitsminus prescribed price. They believe that increasingprescribed benefits and decreasing prescribed price canbring greater value to customer and as a result there isa greater likelihood that customer will buy (Table : 1)

• Majority (36%) of the respondents have given positiveresponse regarding E-marketing activities.

• Majority (30%) of the respondents are satisfiedimproved in customers retention and loyalty.

• Majority (36%) of the respondents are satisfy theirtheir credit facilities.

• Majority (26%) of the respondents have given positiveresponse as compared to other competitors.

• Majority (30%) of the respondents are satisfieddiscount on bulk purchase.

• Majority (28%) of the respondents are gaveconcession to the regular customers.

Suggestions• Most of the customers needed with good service. So

the E-CRM marketers should take necessary stepsto improve its range of service.

• Price of the products should be reduced, so thatmiddle class can also enjoying the product.

• Transaction should be safe and proper securityassured to the people marketing online purchase.

• Consumers awareness about the E-market productand price reduction with procure a huge market.

ConclusionThe research titled “A study on CRM in E-marketing”.Most consumers are hesitant to buy items over the E-marketing because of the fear that their personalinformation may not be kept confidential by the

Table - 1 : Data Analysis And InterpretationYes

36

30

36

26

39

35

35

28

No

14

20

14

24

11

15

15

22

Factors

Any improvements in customerresponse to the E-marketingactivities

Any improvements in customerretention and loyalty

Provide credit facilities to yourcustomers

Satisfied with the range of service

Find their charges nominal ascompared to other competitors

Enjoyed any discount on bulkpurchase

Getting an attractive offer duringpurchase

Give conclusions to your regularcustomer

S.No

1

2

3

4

5

6

7

8



companies. So the companies give more advertisement and create awareness among the customer. The companyshould take action for customer to believe the product and secure, safe their money.

References1. Anderson,K&Kers.C(2001),Customer Relationship Management, McGraw –Hill education.2. Bergeron,P.B(2004),Essentials of CRM :A guide to Customer Relationship Management ,Jhon Wiley and sons

publications.3. Feinberg,R.A;Kadam,R.;Kokama,L.; and Kim. I(2002),The state of electronic customer relationship management

in retailing, International Journal of Retails &distribution management,volume:30,Number:10,2002.4. Ross,D.F.,E-CRM from a supply chain management perspective, Journal of information systems management,

winter 2005,volume:22 Issue 1,page 37-44.5. Vacca,J.&Loshin,P.(2003),Electronic commerce, Fourth edition, Charles River Media,Inc. Hingham,

Massachusetts.6. Porter,W.T(2005), User-Centred Designed and Marketing: online customer value, Published in ‘contemporary

research in E-marketing’,volume:2,by Idea Group publishin.

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A STUDY ON CONSUMER’S PURCHASE AND SATISFACTION OFCOMMODITIES THROUGH FAIR PRICE SHOPS (FPS)

IN MADURAI DISTRICT

AbstractThe Public Distribution System is one of the Poverty Alleviation Schemes introduced by the Government of India andimplemented through the state Government. As nearly 40 per cent of Indian population lives below the poverty line,the PDS came as a saviour to the poorer sections of the Indian population. A Public Distribution Shop is also knownas Fair Price Shop (FPS) or Ration shop. It is a part of India’s Public Distribution System established by the Governmentof India which distributes rations at subsidized price to the poor. The majority of consumers say that they always getrice, sugar, kerosene and palm oil and most of them say that they sometimes get wheat, black gram and red gram.There is significant difference between what is required and what is purchased of commodities through Fair PriceShops. Most of consumers say that the time of purchase from fair price shop is in 1st week of the month and majorityof them say that the products standard is normal and most of them say that low price is the reason for purchasing thecommodities form Fair Price Shops. The quantities of products which are being supplied by the Fair Price Shops arenot enough for the consumption of a family. Hence the Government can take necessary steps to provide additionalquantity of products to the card holders. In addition, the Government should take necessary steps to ensure propersupply of goods as per the monthly quota in time to avoid inconvenience to the family card holders.

Key Words: Consumers, Fair Price Shops, Purchase, Satisfaction

B.Menaka1 R.Ganapathi 2

IntroductionWithout proper distribution of food and essentialcommodities to the poor and vulnerable sections of thesociety, India’s hope for improvement of human life withdignity, securing democracy and achieving social justicewill be a futile exercise. It is because of these reasonsthat the scheme of Public Distribution System (PDS)came into existence for ensuring proper and adequatesupply of essential commodities to the weaker andvulnerable sections of the society at cheaper rates. Inorder to mitigate the sufferings of the people, theGovernment undertakes the sales of essential food itemsunder a specially created distributive networks system.In India, both the Central and State Government attachutmost importance to ensure the availability of essentialcommodities, especially to the poor and downtroddenat affordable prices under the Public Distribution System(PDS).The Public Distribution System is one of the PovertyAlleviation Schemes introduced by the Government ofIndia and implemented through the state Government.As nearly 40 per cent of Indian population lives belowthe poverty line, the PDS came as a saviour to the poorersections of the Indian population. This is one of the uniqueschemes introduced by the Indian Government and sucha scheme is a model worth to be followed by other Asian

Countries and developing Countries. A Public DistributionShop is also known as Fair Price Shop (FPS) or Rationshop. It is a part of India’s Public Distribution Systemestablished by the Government of India which distributesrations at subsidized price to the poor.Inspite of such efforts by the Government, severalproblems were reported through media and researchstudies on the inability of the Universal PDS in meetingits avowed objectives. Some of the often reportedproblems are the difficulties encountered by the needypeople in obtaining the family cards, frequent smugglingand hoarding of bunk of PDS commodities, improperquantity and quality in allocation of PDS goods, irregularfunctioning of Fair Price Shops (FPS), inability of thepoorest to access PDS commodities, lack of communitymonitoring and rampant corruption at various levels bythe implementing agencies and departments. In FairPrice Shops, the service and consumer satisfaction arethe deciding factors for any purchase. The consumersattach considerable value on the quality andresponsiveness of a Fair Price Shops servicecomponent, as well as product quality and availability inmaking purchase decisions. Therefore, the presentresearch is made to study consumer’s purchase andsatisfaction of commodities through Fair Price Shops(FPS) in Madurai district.

1 Assistant Professor,Department of Commerce, Bharathidasan University Constituent model college, Aranthanki, Pudukottai

2 Assistant Professor, Department of Commerce, DDE, Alagappa University, Karaikudi.



MethodologyThe Madurai district has been purposively selected for the present study. A good number of 550 consumers of FairPrice Shops have been selected for the present study by adopting random sampling technique and the data andinformation pertain to the year 2014-2015. In order to examine the profile of the consumers, availability of commoditiesin fair price shops, purchase of products by consumers in Fair Price Shops and overall satisfaction of consumersabout Fair Price Shops, the frequency and percentage analysis have been carried out. The weighted average andranking have been calculated for satisfaction level of consumers about Fair Price Shops. The mean and standarddeviation have been worked out for requirement and purchase of commodities through Fair Price Shops. In order toexamine the difference between requirement and purchase of commodities through Fair Price Shops, the paired t-test has been employed.

Results and DiscussionProfile of the ConsumersThe profile of the consumers was analyzed and the results are presented in Table-1. The results show that about71.82 per cent of consumers are females and about 28.18 per cent of consumers are males. It is clear that about44.91 per cent of consumers belong to the age group of below 30 years followed by 31-40 years (40.55 per cent), 41-50 years (10.54 per cent) and above 50 years (4.00 per cent). The results indicate that about 41.64 per cent ofconsumers are educated up to school level followed by college level (37.45 per cent), illiterate (13.09 per cent) anddiploma level (7.82 per cent). It is observed that about 32.55 per cent of consumers are working in other occupationsfollowed by private sector (28.73 per cent), agriculturist (25.27 per cent), professional (8.00 per cent) and Governmentservice (5.45 per cent). The results reveal that about 54.36 per cent of consumers belong to the annual incomegroup of below Rs.25,000 followed by Rs.25,001 – Rs.50,000 (30.73 per cent), Rs.50,001 – Rs.1,00,000 (13.45 percent) and above Rs.1,00,000 (1.46 per cent). It is apparent that about 50.55 per cent of consumers are marriedfollowed by unmarried (43.27 per cent), widow (3.45 per cent), widower (1.46 per cent) and separated (1.27 percent).

Table - 1 : Profile of the Consumers

Profile of Consumers Number of Consumers PercentageGenderMale 155 28.18Female 395 71.82Age GroupBelow 30 years 247 44.9131-40 years 223 40.5541-50 years 58 10.54Above 50 years 22 4.00Educational QualificationIlliterate 72 13.09School level 229 41.64Diploma level 43 7.82College level 206 37.45OccupationGovernment Service 30 5.45Private Sector 158 28.73Professional 44 8.00Agriculturist 139 25.27Others 179 32.55Profile of Consumers Number of Consumers PercentageAnnual IncomeBelow Rs.25,000 299 54.36Rs.25,001 - Rs.50,000 169 30.73

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Particulars

Required

Purchased

Rs.50,001 - Rs.1,00,000 74 13.45Above Rs.1,00,000 8 1.46Marital StatusMarried 278 50.55Unmarried 238 43.27Widow 19 3.45Widower 8 1.46Separated 7 1.27Residential AreaUrban 100 18.18Rural 450 81.82Nature of ShopFull Time 460 83.64Part Time 90 16.36

The results show that about 81.82 per cent of consumers are residing in rural area and the rest of 18.18 per cent ofthem are residing in urban area. It is clear that about 83.64 per cent of Fair Price Shops are full time shops, while,16.36 per cent of Fair Price Shops are part time shops.

Availability of Commodities in Fair Price ShopsThe consumer’s perception about availability of commodities in fair price shops is presented in Table-2.

Table - 2 : Availability of Commodities in FPSCommodity Always Sometimes NeverRice 96.40 3.40 0.20

Wheat 17.20 63.70 19.10

Sugar 83.60 15.30 1.10

Kerosene 49.50 48.90 1.60

Palm oil 52.20 43.10 4.70

Black gram 19.30 65.60 15.10

Red gram 34.50 52.00 13.50

From the above table, it is found that the majority of the consumers (96.40%) say that they always get rice, themajority of the consumers (63.70%) say that they get wheat only sometimes, majority of the consumers (83.60%)say that they always get sugar. 49.50 per cent and 48.90 per cent of the consumers say about that they getkerosene always and sometimes respectively. Majority of the consumers (52.20%) say that they always get palmoil. Most of the consumers (65.60%) say that sometimes only they get black gram. Another 52 per cent of theconsumers say that sometimes only they get red gram and the 34.50 per cent of the consumers say that alwaysthey get red gram.

Comparison of Requirements and Purchase of RiceThe comparison of consumer’s requirements of purchase of rice was analyzed and the results are presented inTable-3.

Table - 3 : Comparison of Requirements and Purchase of Rice

Mean

28.16

20.04

N

550

550

StandardDeviation

7.102

1.330

t

24.596

Degrees ofFreedom

549

Sig.

.000

The results show that the requirement of rice per family is 28 kilograms per month, while purchase is only 20kilograms per month. The t-value of 24.596 is significant at one per cent level indicating that there is significantdifference between what is required and what is purchased of rice per family per month.



Comparison of Requirements and Purchase of WheatThe comparison of consumer’s requirements of purchase of wheat was analyzed and the results are presented inTable-4.

Particulars

Required

Purchased

Table - 4 : Comparison of Requirements and Purchase of Wheat

Mean

4.94

3.02

N

550

550

StandardDeviation

2.232

1.634

t

16.894

Degrees ofFreedom

548

Sig.

.000

The results indicate that the requirement of wheat per family is five kilograms per month while purchase is only threekilograms per month. The t-value of 16.894 is significant at one per cent level indicating that there is significantdifference between what is required and what is purchased of wheat per family per month.

Comparison of Requirements and Purchase of SugarThe comparison of consumer’s requirements of purchase of sugar was analyzed and the results are presented inTable-5.

Particulars

Required

Purchased

Table - 5 : Comparison of Requirements and Purchase of Sugar

Mean

3.49

1.97

N

550

550

StandardDeviation

1.227

.085

t

27.432

Degrees ofFreedom

549

Sig.

.000

It is clear that the requirement of sugar per family is three and half kilograms per month while purchase is only twokilograms per month. The t-value of 27.432 is significant at one per cent level indicating that there is significantdifference between what is required and what is purchased of sugar per family per month.

Comparison of Requirements and Purchase of KeroseneThe comparison of consumer’s requirements of purchase of kerosene was analyzed and the results are presentedin Table-6.

Particulars

Required

Purchased

Table - 6 : Comparison of Requirements and Purchase of Kerosene

Mean

3.63

2.05

N

550

550

StandardDeviation

1.405

.414

t

20.748

Degrees ofFreedom

549

Sig.

.000

It is observed that the requirement of kerosene per family is three and half litres per month while purchase is onlytwo litres per month. The t-value of 20.748 is significant at one per cent level indicating that there is significantdifference between what is required and what is purchased of kerosene per family per month.

Comparison of Requirements and Purchase of Palm OilThe comparison of consumer’s requirements of purchase of palm oil was analyzed and the results are presented inTable-7.

Particulars

Required

Purchased

Table - 7 : Comparison of Requirements and Purchase of Palm Oil

Mean

2.08

1.03

N

550

550

StandardDeviation

.754

.087

t

32.764

Degrees ofFreedom

549

Sig.

.000

The results reveal that the requirement of palm oil per family is two litres per month while purchase is only one litreper month. The t-value of 32.764 is significant at one per centlevel indicating that there is significant difference between what is required and what is purchased of palm oil perfamily per month.

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Comparison of Requirements and Purchase of Black GramThe comparison of consumer’s requirements of purchase of black gram was analyzed and the results are presentedin Table-8.

Particulars

Required

Purchased

Table - 8 : Comparison of Requirements and Purchase of Black Gram

Mean

2.52

1.03

N

550

550

StandardDeviation

.870

.012

t

36.114

Degrees ofFreedom

549

Sig.

.000

It is apparent that the requirement of black gram per family is two and half kilograms per month while purchase isonly one kilogram per month. The t-value of 36.114 is significant at one per cent level indicating that there issignificant difference between what is required and what is purchased of black gram per family per month.

Comparison of Requirements and Purchase of Red Gram The comparison of consumer’s requirements of purchase of red gram was analyzed and the results are presentedin Table-9.

Particulars

Required

Purchased

Table - 9 : Comparison of Requirements and Purchase of Red Gram

Mean

2.96

1.20

N

550

550

StandardDeviation

.814

.016

t

43.452

Degrees ofFreedom

549

Sig.

.000

The results show that the requirement of red gram per family is three kilograms per month while purchase is onlyone kilogram per month. The t-value of 43.452 is significant at one per cent level indicating that there is significantdifference between what is required and what is purchased of red gram per family per month.

Purchase of Products in Fair Price ShopsThe purchase of products by consumers in Fair Price Shops was analyzed and the results are presented inTable-10.

Table - 10 : Purchase of Products in Fair Price ShopsParticulars Number of Consumers Percentage

Method of Purchase from Fair Price ShopsIn Person 35 6.36Any Member of the Family 505 91.82Through Others 10 1.82

Time of Purchase from Fair Price Shops1st Week of the Month 242 44.002nd Week of the Month 181 32.913rd Week of the Month 109 19.824th Week of the Month 18 3.27

Products StandardFine 59 10.73Normal 468 85.09Poor 23 4.18Reasons for Purchasing the Commodities from Fair Price ShopsLow price 403 73.27Reasonable quality 26 4.73Compulsion 42 7.64Quantity of supply 69 12.54Nearness 10 1.82



Majority of the consumers (91.82%) say that the method of purchase from fair price shops is by any member of thefamily and the rest of the consumers say that the methods of purchase from fair price shop are by personal andthrough others.It is clear that 44 per cent of the consumers say that the time of purchase from fair price shop is in 1st week of themonth, another 32.91 per cent of the consumers say that time of purchase from fair price shop is in 2nd week of themonth. And the remaining 23.09 per cent of the consumers say that the time of purchase from fair price shops arein 3rd and 4th weeks of the month.Most of the consumers (85.09%) say that the products standard is normal and 10.73 per cent of the consumers say thatthe products standard is fine and the remaining 4.18 per cent of the consumers says that the products standard is poor.Majority of the consumers (73.27%) say that low price is the reason for purchasing the commodities from fair priceshop, 12.54 per cent of the consumers say that quantity of supply for purchasing the commodities form fair priceshop and 7.64 per cent of the consumers say that compulsion for purchasing the commodities form fair price shop andthe rest say that reasonable quality and nearness about the reasons for purchasing the commodities form fair priceshop are the reasons the purchasing the commodities through fair price shop

Satisfaction Level of Consumers about Fair Price ShopsThe satisfaction level of consumers about Fair Price Shops was analyzed and the results are presented in Table-11.

Table - 11 : Satisfaction Level of Consumers about Fair Price ShopsParticulars Weighted Average RankQuality of goods 3.34 5Measurement of goods 3.30 6Price 3.82 1Essential commodities are adulterated 2.66 16Packing system 3.10 8Discrimination or favouritism of FPS 2.88 12Staff behaviour 2.82 13Compelled of purchase of non fps commodities 2.36 20Proper display of stock distribution 2.78 14Essential commodities are sold non-card holder 2.60 18Bogus entries are made for non-purchased commodities 2.41 19FPS commodities earmarked for distribution 2.63 17Essential commodities are adequately supplied 2.98 11Proper queue system 3.02 9FPS timings 3.01 10Obtaining the essential commodities at the right time 3.17 7Qualities of festival articles 3.35 4Political influence 2.72 15Ration purchase is obtained from the help of others 3.42 2Stock verification for SMS scheme 3.40 3

From the above table, it is clear that the price of the ration product has top satisfaction level (Rank 1), rationpurchase with help of others has second level of satisfaction (Rank 2), stock verification SMS scheme gets thirdlevel of satisfaction (Rank 3) and followed by others.The overall satisfaction of consumers about Fair Price Shops was analyzed and the results are presented in Table-12.

Table - 12 : Overall Satisfaction Consumers about Fair Price Shops

Satisfaction Level Number of Consumers PercentagePoor 14 2.55Average 219 39.82Good 317 57.63 Total 550 100.00

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It is evident from the table, the majority of the respondents57.63 per cent have good level of overall satisfaction aboutthe functioning Fair Price Shop, 39.82 per cent of therespondents have average level of overall satisfaction andonly 2.55 per cent fee that they have poor level of overallsatisfaction

ConclusionThe majority of consumers say that they always getrice, sugar, kerosene and palm oil and most of themsay that they sometimes get wheat, black gram and redgram. The requirement of rice per family is 28 kilogramsper month, while purchase is only 20 kilograms per monthand the requirement of wheat per family is five kilogramsper month while available is only three kilograms permonth. The requirement of sugar per family is three andhalf kilograms per month while available is only twokilograms per month and the requirement of keroseneper family is three and half litres per month while availableis only two litres per month.The requirement of palm oil per family is two litres permonth while available is only one litre per month and therequirement of black gram per family is two and halfkilograms per month while available is only one kilogramper month. Besides, the requirement of red gram perfamily is three kilograms per month while available isonly one kilogram per month. There is significantdifference between what is required and what ispurchased of commodities through Fair Price Shops.Majority of the consumers say that the method ofpurchase from fair price shops is by any member of thefamily and most of them say that the time of purchasefrom fair price shop is in 1st week of the month. Most ofthe consumers say that the products standard is normaland majority of the consumers say that low price is thereasons for purchasing the commodities form Fair PriceShops. The consumers are satisfied with price, rationpurchase is obtained from the help of others and stockverification SMS scheme and majority of them have goodlevel of overall satisfaction about the functioning Fair PriceShops.It is found from the study the quantities of products whichare being supplied by the Fair Price Shops are notenough for the consumption of a family. Hence theGovernment can take necessary steps to provideadditional quantity of products to the card holders.Sometimes all products are supplied to the card holdersin two or three days in the first week of every month.Certain goods are not supplied during the other workingdays of the month. Hence, the food supply authorities

are to take necessary steps to obtain any goods on anyworking day of the month. In addition, the Governmentshould take necessary steps to ensure proper supply ofgoods as per the monthly quota in time to avoidinconvenience to the family card holders.References:1. Bapna, S. L. (1990), “Food Security through Public

Distribution System: The Indian Experience”, In(Editions) Tyagi, D. S. & Vijay Shankar Vyas,‘Increasing Access to Food: The Asian Experience’,Sage Publication, New Delhi, p.105.

2. Brij Pal, (2011), “Organisation and Working of PDSin India: A Critical Analysis”, Research onHumanities and Social Sciences, Vol. 1, No. 1,pp.12-25.

3 Gurdeep Kaur Ghumaan and Pawan Kumar Dhiman,(2013), “Organisation and Working of PublicDistribution System – A Study of Punjab”, IndianJournal of Applied Research, Vol. 3, No. 4, pp.34-44.

4. Jos Mooji, (1999), “Food Policy and the Indian State– The PDS in South India”, Oxford University Press,New Delhi.

5. Mahendran, A., (2013), “A Study on CustomerSatisfaction on Food Delivery Mechanism ofUniversal PDS in Tamil Nadu (India)”, InternationalJournal of Agricultural Economics andExtension, Vol.1, No.8, pp.61-67.

6. Mooji Jos, (1999), “Dilemmas in Food Policy”,Economic and Political Weekly, Mumbai, Vol.XXXIV, No. 52, pp.25-31.

7. Nakkiran, S., (2007), “A Study on the Effectivenessof PDS in Rural Tamil Nadu”, Report Submitted toPlanning Commission, Government of India, NewDelhi.

8. Rajita Varma (2012), “The ‘Last Mile’, Critique:Implementation and Accessibility of PDS in Delhi”,CCS Working Paper No. 269, Summer ResearchInternship Programme, Centre for Civil Society,New Delhi.

9. Reetika Khera, (2011), “Trends in Diversion of Grain fromthe Public Distribution System”, Economic & PoliticalWeekly, Mumbai, Vol. XLVI, No. 21, pp.98-107.

10. Shikha Jha and Srinivasan, P. V. (2002), “TargetingFood Subsidies”, in (Editions) K. Seetha Prabhuand R. Sudharsan, Reforming India’s Social Sector,Poverty, Nutrition, Health and Gender, SocialScience Press, New Delhi.



11. Sujatha Narwal (2001), “Management of Public Distribution System”, Deep & Deep Publications, New Delhi.12. Suryanarayana, M. H. and Geetha, S., (1993), “Revamping PDS Some Issues and Implications”, Economic

and Political Weekly, Mumbai, Vol. XXVIII, No. 41, pp.54-62.13. Verma and Prasad (1990), “Public Distribution System Theoretical Perspectives”, Uppal Publications, New

Delhi.

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A STUDY ON CONSUMER BEHAVIOUR ON UTILIZATION OF ATMSERVICES IN THANJAVUR

Abstract

Automated teller machine is the most visible and perhaps the most revolutionary elements of virtual banking revolution.ATM are self-service vendor machines that helps the banks to provide round the clock banking services to theircustomer at convenient places without visiting the bank premises they enables the bank to transact more businessby offerings various services in a cost effective way on one side and also to get more customer satisfaction on theother .thus ATM impacts the customer services and leads to better customer satisfaction to analyze the relationshipbetween the demographic variable and preference to use ATM, structured questioners used to collect the data froma convenience sample of 200 customers from the samples of public and private banks in Thanjavur .this study isdone by descriptive research techniques employing the survey method of means of questioner .this study alsoproves the hypothesis that there is significant relation between usage of ATM services and awareness of ATMservices.

Key Words: Customer awareness, ATM service utilization, ATM features .

S.Meenakshi1

IntroductionThe financial sector reforms introduced in the early 1990senvisaged an effective and strong financial industry theintroduction of these reforms brought with it healthycompetition banks felt the need to upgrade theircustomer services to a much higher plane in order tosurvive in this competitive environment they foundtechnology as an ideal tool to achieve this objective publicsectors banks were guided by the recommendation ofthe committee for up gradations of banking technologythus technology is revolutionizing the financial servicesindustry through various unthinking innovations thevolume of cross –border trading and other financialactivities is in increasing geometrically facilitated bytechnology over product innovations in banks is enormousthus bank have to decided which products they wish tosell it has opened up options for various delivery channels,technology aided product lick ATMS, point of salesdevice any where any banking ,smarts cards ,visa cardsinternet banking and wap banking have given thecustomer to choose his channels of getting hisrequirements . thus there channels offer customer,convenience ,any where, any time banking one of themost popular channels of banking service delivery isthrough the ATMs or automated teller machines of whichthe traditional and primary use was to dispense cashupon insertion of a plastic card and its unique personalidentification number (pin) in such type of innovationATM that can mechanically accept deposits , issuewithdrawals, transfer funds between accounts , collectcheques, recharge mobiles ect this study aims atanalyzing the customer proclivity regarding utilize of ATMservice in thanjavur

1 .Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

Benefits of ATMS to customers• 24 hours access availability• Less time for transaction• Less space required• Convenience of shopping no need to carry cash• Acceptability of the card across multiple banks atms

even foreign tourists can access maestro /visa ATMsetc.

ObjectivesTo study the customer preference regarding ATMservice in thanjavur.To identify the effectiveness of public and privatebanks ATM services.To analyze the customer utilizing ATM services.

Research methodologyThis study used the descriptive and exploratory researchdesign analyzing of secondary data combined withshared thoughts of research’s academics peers andexperts in finical service has given solid based fordescriptive analysis. the perceptional analysis to explorethe opinion of ATM cardholder of public and private sectorsbanks 200 respondents selected in conveniencesampling .pilot tested structured questionnaire methodis used in this study.

HypothesisHo : there is no significant relation between ATMawareness and usage of ATM servicesH1: there is significant relation between ATM awarenessand usage of ATM services.



Data collectionFor this study primary and secondary data were usedand percentage method is used.

Limitation of this study1. This study is limited to the customer of thanjavur

only .therefore the influence cannot be generalized.2. The study relies on primary data which could be

biased and this study sample size only 200respondents

Review of literatureKukkudi &deen (2006) studied the impact of atmson customer satisfaction with special reference togulbaroa district with sample service of SBH 100respondents its is conclude that atm are used mostlyby the age group of 25-35 years comprising moremale members 79pc use atms weekly where 85 pcare aware about the restriction concerning atmsusage and the number of atms are sufficient to meetcurrent needs .it is suggested in this study that atmsshould be popularize among maximum customer .Banknet publication (2007) this report is based ononline survey of 316 respondents who were in theage range of 20-60 years, from cities spread acrossindia majority of respondents belonged toMaharashtra,tamilnadu,delhi Karnataka and AndhraPradesh an effort was made to ascertain through thissurvey ATMS users perceptions towards acceptingthe ATMS user’s perceptions towards accepting theATM machines value added services provided andproblems faced by users.Vijieh rental (2011) in the research paper mentionsthe benefits of providing valuable services throughdelivery channels “delivery the services simplersecurely, acquire new customers retain their existingcustomers , keep customer, retain their existingcustomers, keep customers highly satisfied on theservice provided ,lower operational cost, lowertransaction processing cost ,wider customer baseirrespective of geographical barriers, higher profits onbottom –line.

Result and DiscussionsTable - 1 : Demographic Profile of the Respondents

Sl.no Contents Frequency PercentageAge

1. upto 25 53 26.52. 26-35 42 213. 36-45 40 204. 46-55 35 175. 56-60 21 10.56. 61 & above 9 4.5

GENDER1. male 140 702. female 60 30

OCCUPATION1. Student 26 132. business 39 19.53. Professional 37 18.54. Public sector 40 20.005. Private sector 49 24.56. Others 9 4.5

EDUCATION1. Primary 8 42. Sslc 14 73. Hsslc 19 9.54. Graduate 79 39.55. Post graduate 80 40

MONTHLY INCOME1. Less than 10000 18 92. 10001-20000 30 153. 20001-30000 65 32.54. 30001-50000 31 15.55. 50000and above 56 28

Source: Primary data –survey

Table no: 1 showing the details of socio –economic profileof 200 respondents in thanjavur in this table covered agegender occupation education of respondents andmonthly income of the respondents. in this table showsmajority of respondents are male category and type ofowing ATM card of respondents both public and privatesectors banks.

Table - 2 : Users knowledge about the Feature of Atm.Sl.no Response Percentage1. 187 93.52. 13 6.5

Source : Primary data –survey

In this table shows majority of 93.5 respondents is user’sknowledge about the features of atm operation.

Table - 3 : Frequency of Use of ATM byRespondents

Sl.no Response Frequency Percentage1. Daily 49 24.52. Weekly 58 293. More than 3 times

in a week 65 32.54. Fortnightly 20 105. Monthly 8 4

Source : primary data –survey

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In this table reveals respondents are using ATM indifferent access of frequency of use daily, weekly morethan three times in weekly and fortnightly.

Table - 4 : Preference of Respondents Based onLocation of ATM

Sl.no Responses Frequency Percentage1. Any ATM 97 48.52. Home bank ATM 79 39.53. Offsite ATM 17 8.54. On site ATM 7 3.5

Chart for the table 4: preference of respondents basedon location of ATM.

Source: Primary data –survey

In this table shows preference of respondents based onlocation of atm. Majority of the respondents are usingany ATM and respondents are prefer more in using homebanking.

FINDINGS OF THE STUDY• Majority of the respondents are utilizing atm in a

significant manner.• Majority of the respondents are using atm more than

3 times in a week• 65 % of the respondents is agree of service quality• Majority of the respondents is user’s knowledge

about the features of atm operations• 39% of the respondents is agree of safety and

security• Card looking ,poor quality of currency unsuitable

location and unsecured these are the problems facedby the respondents of using atm .

Suggestions of the Study• Awareness regarding atms . It is imperative that more

customer should be made aware of the service of atms• Banks should provide operational knowledge of atms

with information about each of their functions.• Atm should work 24*7 in 365days, cash refilling at

proper intervals must be made to ensure that cashdoes not get over in the cash stacks. this care shouldbe taken over weekend and during holidays.

• Banks should allow the cash transaction of largeamount through atms

• The system of tractions through atm must be speedy,accurate and reliable and also bank must ensurethat the technology adopted latest and more efficient

CONCLUSIONFrom the above analyses e-channels enables the banksto be better connected with the customer and vice versaatm has many positive features but the customerselected on the basis of connivance are not well awareof all these .customer are also facing different problemswith which atm is directly related but majority of thecustomer are highly satisfied with atm services and viewthem as essential service .these customer prefer atmwith time and cost utility which provides efficient servicesto the customer for the best result

Referencei. Avasthi, g.p and Sharma .m (2000-01), information

technology in banking challenges for regulator’s (xx1x(14) .17 p

ii. R.vijiesh ,v.vijay anandh ,n.panchanatham 2011,technology management in banking –risk onaltenative channels – a global

iii. Bank net India’s report on Indian ATM industry ,EDmay 2007 banket net publications.

iv. Robinson, g (2000) ‘bank to future ‘ internet magazine.retrieved from www.findarticles .com

v. Dr.R.K.uppal Indian journal of finance (2010) .



THE COMPANIES ACT 2013-CHANGING INDIA INC...

Abstract

The existing companies Act 1956 has been amended at least 25 times in the past 57 years with many of its provisionsfound to be outdated and inadequate. The passage of the bill which is spread across nearly 30 sections and over 300pages was widely welcomed by stakeholders, including industry bodies, political leaders and consultants. The newact companies of 29 chapter 470 sections 7 schedules as against 658 sections and 14 schedules in the companiesact 1956. In 470 sections the word as may be prescribed has been used at around 336 places. On August 30, 2013,the Companies Act 2013 (“Act”) was finally notified thereby putting an end to a long wait for a comprehensivelegislation that is expected to herald a new era in corporate governance and change the way India Inc. functions. Thelegislation has introduced the concept of a One Person Company (“OPC”) to the existing classes of companies,public and private, and has also envisaged additional/exclusive provisions for OPC, wherever necessary. The legislationclearly defines the role of such independent directors and has a detailed “Code for independent directors”4 appendedto it, which contains explicit guidelines for professional conduct, roles and responsibilities of such directors. Likewise,provisions for mergers/amalgamations between small companies, holding and subsidiary companies and otherprescribed class of companies are also separately provided for. Unlike its predecessor, the new law has defined“fraud” and dealt extensively with it. With an increase in corporate misconduct and frauds in India, this may be the rightapproach as this law empowers an agency, Serious Fraud Investigation Office (“SFIO”), to tackle corporate scams.The hope is that the new contemporary and pragmatic legislation will bring radical changes to the way corporate Indiafunctions. It has all the right elements. So, the company and its advisers will have to be mindful of both legislations,as well as the draft rules to ensure compliance with the law.

K. Maruthadurai 1

IntroductionThe existing companies Act 1956 has been amended atleast 25 times in the past 57 years with many of itsprovisions found to be outdated and inadequate. Thepassage of the bill which is spread across nearly 30sections and over 300 pages was widely welcomed bystakeholders, including industry bodies, political leadersand consultants.The next step is to finalize the rules and define proceduralaspects of this act. The Ministry of corporate affairshas put the draft rules for public comments. The draftrules are available at the website of ministry atwww.mca.gov.in. The relevant portions of the actwill be notified in a step by step manner, along with therules applicable. Corporate Affairs Minister Sachin Pilothad earlier said the government plans to adopt atransparent and interactive process to finalize detailedset of rules to be adopted under the new company’s bill.The new act companies of 29 chapter 470 sections 7schedules as against 658 sections and 14 schedules inthe companies act 1956. In 470 sections the word asmay be prescribed has been used at around 336 places.The act extents the whole of India and different provisionsof the act will be applicable on such date[s] as the centralgovernment, by notification in the official gazette, mayappoint and different dates may be appointed for differentprovisions of the act.

1 .Assistant Professor, Department of Management Studies, Thanthai Hans Roever College, Perambalur

On August 30, 2013, the Companies Act 2013 (“Act”)was finally notified thereby putting an end to a long waitfor a comprehensive legislation that is expected to heralda new era in corporate governance and change the wayIndia Inc. functions. The new Act is rule based since alarge part of the Act is dependent upon the allied rules.All the sections have not been notified and in the firstphase of its implementation, the Government has notified98 sections on September 12, 2013. This newsletterprovides a snapshot of some key, selective changes thatare brought by the new Act.

About MCAThe Ministry is Primarily Concerned with Administrationof the Companies Act 2013, the Companies Act 1956,the Limited Liability Partnership Act, 2008 & other alliedActs and rules & regulations framed there-under mainlyfor regulating the functioning of the corporate sector inaccordance with law.The Ministry is also responsible for administering theCompetition Act, 2002 to prevent practices havingadverse effect on competition, to promote and sustaincompetition in markets, to protect the interests ofconsumers through the commission set up under theact. Besides, it exercises supervision over the threeprofessional bodies, namely, Institute of CharteredParliament for proper and orderly growth of theprofessions concerned. The Ministry also has the

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responsibility of carrying out the functions of the CentralGovernment relating to administration of Partnership Act,1932, the Companies [Donations to National Funds] Act,1951 and Societies Registration Act, 1980.

Formation and Capital StructureThe legislation has introduced the concept of a OnePerson Company (“OPC”) to the existing classes ofcompanies, public and private, and has also envisagedadditional/exclusive provisions for OPC, wherevernecessary. The Act has made some notable changeswith respect to incorporation as well as in the structureof its charter documents, Memorandum and Articles ofAssociation.1 The changes include penalty for facilitatingincorporation by using wrong or incorrect information,additional formats of the charter documents for anunlimited company with and without a share capital. Italso raised the maximum numbers of members allowedfor private companies four times, from the prevailing 50to 200, thereby paving way for an age of larger businesshouses, structured entirely on private participation. Thereare some interesting amendments regarding companies’capital structure. One such modification is regarding theminimum subscription provisions. As a deviation fromthe old Act that prohibited allotment of shares to publicunless minimum prescribed subscription in accordancewith the prospectus was received, the new Act hasextended this minimum subscription condition to allsecurities irrespective of whether shares or debentures.A blanket ban on issue of shares at a discount, barringsweat equity shares2 is contemplated under section 53of the legislation. Provisions for issue of global depositoryreceipts by means of public offering or private placementhave been added under section 41, which could havethe potential to facilitate foreign investment.

Conduct of Meetings: Board and ShareholdersCertain pioneering changes have been

introduced in the way meetings are conducted. Already,Directors can attend and participate through videoconferencing or other audio visual means in the boardmeetings. This really obviates the need to travel,particularly for the foreign directors. Further, a class ofcompanies, to be notified by the Central Government forthis purpose, will now be entitled to conduct votingelectronically. But the Act is silent as to the differentmodes that can be adopted by the companies for theelectronic voting system. The prescribed limit for quorumof public company’s shareholders meetings has alsobeen modified and will now be decided by the number ofmembers of the company instead of 5, as earlier. Anexplanatory section, intended for giving additional clarityon the material facts to be included in the explanatorystatement to be enclosed with the notice of generalmeetings and penalty for tampering with the minutes

are other interesting additions. Business hours aredefined for conducting the Annual General Meetings(“AGM”) and prohibitions are placed on conducting AGMson national holidays instead of public holidays, a deviationfrom the 1956 Act. Another notable change concernsthe first AGM which was to be held within 18 monthsfrom incorporation and was a privilege accorded to newcompanies under the 1956 Act. This provision has nowbeen removed and the Act provides only 15 months forthe conduct of the first AGM by newly incorporatedcompanies. The alternate method for calculation of thelimitation period for the first AGM based on the closingof the financial year has been retained.3 Since it will bedifficult for OPCs to comply with procedural aspectsregarding conduct of meetings due to its structuring,the Act has exempted them from the purview of majorityof the applicable provisions.

The Board of DirectorsThe 1956 Act prescribed minimum 2 directors

for a private and 3 for a public company respectively toconstitute a Board. This criterion has been retained bythe new Act, but the maximum limit of directors on theBoard has now been raised from 12 to 15. The Act hasalso removed the stringent compliance of securing priorCentral Government approval for raising the number ofdirectors beyond the prescribed limit and, instead, acomparatively simpler method of approval by means ofa special resolution of the shareholders has beenintroduced. Additionally, new changes include mandatorypresence of independent directors on the Board of listedpublic companies and minimum one woman director inthe case of certain class of companies to be notifiedlater, thereby bringing more transparency and genderequality into the Board rooms. The legislation clearlydefines the role of such independent directors and hasa detailed “Code for independent directors”4 appendedto it, which contains explicit guidelines for professionalconduct, roles and responsibilities of such directors. Theyare bound by this Code to play a role in theappointments, determination of remuneration and removalof executive directors, managers and key managerialpersonnel. In view of the fiduciary position held bydirectors, explicit provisions prescribing directors dutieshave been added to the new Act. These include keepingaway from situations in which they have conflictinginterest with that of the company, duty to make good inmonetary terms any undue gain/advantage on the partof the directors etc.

AuditorsLimited liability partnerships are now included within thegamut of audit firms and entitled to be appointed asauditors. The auditors of a company are now bound toreport on the efficiency and adequacy of the internal



financial control system as well as the effectiveness ofits operations. The Act stipulates mandatory rotation ofstatutory auditors. Instead of an annual appointment,individual auditors can hold office for a maximum periodof 5 years whereas audit firms are allowed to retain thepost for up to 10 years. A cooling period of 5 years isprescribed for reappointment of auditors who completeone term i.e., 5 years or 10 years as the case may be,of their office. This means that such auditors or auditfirms cannot be reappointed by the same company forthe next 5 years after termination. The recommendationof the Audit committee will also play a significant role inthe appointment of auditors including filling up of casualvacancies due to resignation. The retiring auditors areto file within the statutory period of thirty days a statementabout the termination of their office with the companyand Registrar of Companies and if the auditor is appointedby the Comptroller and Auditor-General of India (“CAG”),then to CAG also. A power to order removal of auditorsof a company is now bestowed upon the new regulatorNational Company Law Tribunal (“Tribunal”). This is asignificant departure from the 1956 Act. Unlike the 1956Act, the auditors will now compulsorily need to attendthe AGMs. The accountability of the auditors is enhancedsignificantly by having the onus of reporting fraud noticedby them, during the performance of their duties, to CentralGovernment. They are also prohibited from renderingcertain service to the company such as accounting andbook keeping services, internal audit, managementservices, actuarial services and, investment advisoryservices

Other key provisions(a) Corporate restructuring5 and winding-up6

Section 234 of the new Act permits cross-border mergersi.e., merger of Indian and foreign companies. India’scentral bank, Reserve Bank of India (“RBI”) will play asignificant role in such mergers as the approving authorityalong with Central Government. Likewise, provisions formergers/amalgamations between small companies,holding and subsidiary companies and other prescribedclass of companies are also separately provided for. Thestatute has provisions for only two methods of liquidationi.e., voluntary winding up and winding-up by the Tribunal.Further categorization of voluntary winding-up intomembers and creditors based upon the declaration ofsolvency from the Board is removed by the Act. A coupleof other new provisions expected to bring radical changesto corporate governance include:

(i) Deep focus on Corporate Social Responsibility(“CSR”):

An increased CSR responsibility is cast upon companieshaving net worth of INR 500 crores (US$ 80 million) ormore, or turnover of INR 1,000 crores (US$ 160 million)

or more or a net profit of INR 5 crores (US$ 0.8 million)or more during any financial year, to promote social,environmental and ethical conduct. Effective from April2014, they will have to spend at least 2% of their three-year average profit annually on CSR activities. They arebound to constitute a CSR committee for the formulationand monitoring of a CSR policy that will envisagepromotion of a wide range of activities includingeradication of hunger and poverty, promotion ofeducation, gender equality and empowering women,ensuring environmental sustainability and vocational skillenhancement. These provisions are introduced with anintention of making the companies responsible to thesociety in which they function. The general perceptionis that this will not only boost corporate charitableactivity in India but also gives companies a range ofvarying tax benefits. Clearly, the advisers will need todevise a tax-efficient CSR strategy for India Inc.

(ii) Class action suits:Any group or association of persons who are affectedby any misleading statements or inclusion/omission ofany matter in the prospectus of a company is entitled toinitiate action. Likewise, individual members/depositorsor any class of them who form an opinion that the affairsof the company are conducted in a prejudicial mannerto them or to the company can approach the Tribunalfor appropriate remedies in the form of damages orcompensation or demand of other suitable action. Theseprovisions enhance the minority shareholders power toprotect their interests.

(iii) Corporate Fraud:Unlike its predecessor, the new law has defined “fraud”and dealt extensively with it. With an increase incorporate misconduct and frauds in India, this may bethe right approach as this law empowers an agency,Serious Fraud Investigation Office (“SFIO”), to tacklecorporate scams. The SFIO will have a statutory statusand will be mandated to investigate corporate frauds,coupled with an authority to impose punitive measuresand in specific instances, even arrest persons found guiltyof corporate crimes. Conclusion The hope is that thenew contemporary and pragmatic legislation will bringradical changes to the way corporate India functions. Ithas all the right elements. Although it is morecomprehensive and appears to be uncomplicated thanits predecessor, it is still in its initial stage ofimplementation and will need many more clarificationsand subsidiary rules from the law makers to make itfully operational. A more complete picture may emergeafter the publications of the supporting rules that arestill on the anvil. Until then, the situation of having twolegislations in force on the same subject matter iscertainly peculiar and could possibly create

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administrative burden. For instance, the definition of a“foreign company” has not been made effective underthe new Act, yet the provisions applicable to foreigncompanies are in effect. In such a situation, it is unclearwhether it would be essential to rely on the old Act forthe definition while relying on the provisions of the newlaw. So, the company and its advisers will have to bemindful of both legislations, as well as the draft rules toensure compliance with the law.

ConclusionThe hope is that the new contemporary and pragmaticlegislation will bring radical changes to the way corporateIndia functions. It has all the right elements. Although itis more comprehensive and appears to be uncomplicatedthan its predecessor, it is still in its initial stage ofimplementation and will need many more clarificationsand subsidiary rules from the law makers to make itfully operational. A more complete picture may emergeafter the publications of the supporting rules that arestill on the anvil. Until then, the situation of having twolegislations in force on the same subject matter iscertainly peculiar and could possibly createadministrative burden. For instance, the definition of a“foreign company” has not been made effective under

the new Act, yet the provisions applicable to foreigncompanies are in effect. In such a situation, it is unclearwhether it would be essential to rely on the old Act forthe definition while relying on the provisions of the newlaw. So, the company and its advisers will have to bemindful of both legislations, as well as the draft rules toensure compliance with the law.Reference:1. Tables A – J of the Companies Act 2013 contain

formats of Memorandum and Articles to be followedby various types of companies.

2. See Section 54 of the Act which states that sweatequity shares may be issued subject to theconditions laid down in this section irrespective ofthe prohibition on issue of shares at a discount ascontained in Section 53.

3. As per the proviso to section 96 (1), the first AGM isto be held within nine months from the date of closingof the first financial year of the company.

4. These are prescribed in Schedule IV of the new Act5. These are covered under Sections 230-240.6. Sections 270-365



FOREIGN DIRECT INVESTMENT IN DEFENCE SECTOR IN INDIA:CHALLENGES AND OPPORTUNITIES

Abstract

Foreign Direct Investment (FDI) is a need based concept. The global defence industry is eager to invest in India. It willbring its best capability (skills, technology, people) if it secures a fair return on investment. Any view that the investmentat the current 26 percent FDI level has made significant improvements to the defence industrial landscape across abroad range of capabilities is not borne out by the evidence. Indian industry can raise the FDI threshold to increasethe velocity of development towards self-reliance. The Government can encourage companies to bring cutting edgecapabilities into India; cutting edge capabilities would be risky, time-consuming and expensive to develop fromscratch. Concerns about the impact of increased FDI on PSUs are overplayed and in fact greater FDI is likely to bothstimulate PSUs and offer new collaborative opportunities and global markets for them. Investment, capability andcrucial employment within the PSUs will increase as the market opportunities increase. Allowing greater FDI indefence production would bring in advanced systems and know-how that generate the battle-winning edge requiredby the Indian armed forces. Increasing permitted FDI in defence sector can promote such on-shore activities and thuspositively contribute to self-reliance. Indian PSUs can be significant manufacturing base for defence equipment andfor that to happen the FDI needs to be encouraged. The present study undertakes to define a strategy that couldenable India to achieve this goal.

Key Words: - Defence Sector, FDI Cap and National Growth.

Dr. M. Kesavan1

IntroductionAt the time of independence, the Government of India’sattitude towards foreign capital was one of fear andsuspicion. This was natural on account of the previousexploitative role played by it in ‘draining away’ resourcesfrom this country. As India had severe scarcity of capitalresources during 1948; it welcomed foreign investmentin a restricted manner. Since the second five year planperiod (1956 1961) greater emphases was given toIndustrialization which led to development of the localindustries. To protect the domestic industry from foreigncompetition, Government adopted a more restrictiveattitude towards Foreign Direct Investment (FDI) in thelate 1960s. In the 1980s, as a part of the industrial policyresolutions, the attitude towards FDI was liberalized.India was on the verge of default and it got financialassistance from IMF on certain terms and conditions.Until the liberalisation of 1991, India was largely andintentionally isolated from the world markets, to protectits fledging economy and to achieve self-reliance. Foreigntrade was subject to import tariffs, export taxes andquantitative restrictions, while foreign direct investmentwas restricted by upper-limit equity participation,restrictions on technology transfer, export obligationsand Government approvals; these approvals were neededfor nearly 60 percent of new FDI in the industrial sector.Since

1 .Head, Department of Commerce, Pavendar Bharathidasan College of arts and science, Mathur, Pudukkottai.

liberalisation, the value of India’s international trade hadbecome more broad-based and has risen to Rs.63,080,109 in 2003-04 from Rs.1, 250 crores in 1950-51. In the year 1991 India faced severe balance ofpayments deficits and was forced to bring about changesin FDI policy. This involved “Structural AdjustmentProgramme (SAP)” by India. Liberalization involves freeoperation of international market forces. This led toremoval of most of the restrictions in FDI. As a result,India is now among the top five most attractivedestinations for FDI.Foreign Direct Investment (FDI) or foreign investmentrefers to long term participation by one country intoanother country. It usually involves participationin management, joint-venture, transfer of technologyand expertise.FDI is permitted in India through two routes; theAutomatic Route and the Government Route. The ForeignInvestment Promotion Board (FIPB) considers approvingall proposals for foreign investment, which requiresGovernment approval. RBI has granted generalpermission under Foreign Exchange Management Act(FEMA) in respect of proposals approved by theGovernment. Indian companies getting foreign investmentapproval through FIPB route do not require any furtherclearance from RBI for the purpose of receiving inwardremittance and issue of shares to the foreign investors.

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FDI ProhibitedFDI is not permissible in Gambling and Betting, or LotteryBusiness, Business of chit fund, Nidhi Company,Housing and Real Estate business, Trading inTransferable Development Rights (TDRs), Arms andammunition, Atomic Energy, Agricultural or plantationactivities or Agriculture (excluding Floriculture,Horticulture, Development of Seeds, Animal Husbandry,Pisciculture and Cultivation of Vegetables, Mushroomsetc. under controlled conditions and services related toagro and allied sectors) and Plantations (other than Teaplantations) and Railway Transport, Coal and lignite,Mining of iron, manganese, chromosome, gypsum,sulphur, gold, diamonds, copper and zinc.

Need For The StudyFDI in defence industry is indeed essential because mostdefence products involve a relatively high level oftechnology and this technology gets transferred only ifthe foreign partner has a long term stake in the company.Presently India is importing almost 70 percent of itsdefence requirements which is almost $30 Billion and2.8 percent of its GDP (SIPRI 2010). By raising the FDIcap rate of 26 percent it will be able to attract foreigninvestors with top class technology and knowhow andalso lead to increase the employment in the country.By encouraging huge investments from outside, Indiacan reduce its imports and thereby focus on developingsectors like infrastructure and therefore there can behuge employment generation and it will help reducingpoverty in the country.

Scope Of The StudyThe study will highlight the current scenario of the FDIinflows in India. The study is confined to a period fromAugust 1991 to March 2011. It is concerned with FDI inDefence Sector and discusses the relevant measuresto formulate and force regulatory and legal reforms inthis sector and achieve its aim of National Growth andquality services through the investor’s dynamicrelationship to attract India as their FDI destination.Therefore, the focus of the present study is on FDI inDefence Sector.

Statement Of The ProblemIndia has achieved impressive GDP growth of over 7percent per annum in the last few years. However,sustaining growth at over 8 percent per annum will requirea significant increase in investment levels in the economy- from approximately 30 percent of GDP to about 34percent of GDP. Over the next 5 years, this translatesto a cumulative investment of over $ 1.5 trillion. Whileexpansion of domestic investment is essential to achievethis goal, FDI, which has been stagnant at about $ 5billion in the past, also needs to be increased

significantly to $ 15 billion. The aim of seeking FDI byIndia in its defence sector is to get both funds andtechnology. But given the present comfortable economicenvironment, it is primarily defence technology that Indianeeds desperately.Defence sector contributes to only 2.8 percent to GDPof India. Present 26 percent cap in defence industryFDI has failed to attract the state-of-the-art technologyin the defence sector. There is great potential of growthand development in this sector but it is not able to exploitits potential. Only 15 percent of the equipment can bedescribed as ‘state-of-the-art’ and nearly 50 percent issuffering from obsolescence. Therefore, there is an urgentneed to enhance the deterrent and operational capabilityof the armed forces through up gradation/ modernizationof existing equipment, as well as acquisition of ‘state-of-the-art’ equipment (IANS 2010). Defence industry ishighly technology driven and capital intensive.It may take some time for domestic companies toacquire a technical edge, however with greater FDI itwill usher in top-notch technology, quality andmanagement skills, as also lower prices and morecompetition. Defence sector is in dire need of investmentin order to achieve this. Moreover a defence-industrialbase, even with higher FDI, will be far better than beingso dependent on imports. As nearly 70 percent of ourdefence requirements are met through imports with only30 percent being met through domestic production. Theproblems arising from purchase of direct sales ofequipment reported by the Chief of the Army Staff islikely to raise some debate in the days ahead. For onone hand the Indian Army is wanting to upgradecapabilities in fire power and thus is looking for accretionof 155 mm gun inventory which at present abysmallyout dated with the 1980’s Bofors gun forming the mainpunch, on the other hand extensive delays in the processof acquisition has led to increase in the time taken forprocurement and thus for almost 20 years the Army hasnot been able to acquire any gun system for enhancingfire power.The investment in this sector by local investors has notbeen able to bridge the gap between the need and actualinvestment. Defence sector needs more advancedtechnology and so Government needs to open its doorto foreign investors in this sector and also increase theFDI cap rate. This will aid the country to focus its moneyon development of various loopholes like infrastructurewhich will help in development and progress of thecountry. Even in the view of a various disadvantages ofFDI, it has played an important role in shaping theeconomic fortunes of a number of countries around theworld.Due to the strategic nature of the Defence Industry, thereis an apprehension that such ventures would fail at critical



times since there would be possibilities of withdrawalon the basis of embargoes/sanction/pressures imposedby foreign Governments or international agencies.Pranab Mukherjee (2005) has recently stated that thedefence sector has been opened up for private investmentand it is not that India is dying for investment. It is forthe interested companies to make necessaryinvestment. To this end, FDI in defence sector has beenstudied.

Objectives Of The StudyThe overall objective of the study is to apply a microapproach to evolve an objective method for analysingFDI in Defence sector India and specifically intend toidentify the opportunities and challenges. This studyreviews existing studies conducted by the Government.The following are the main objectives of the study:1. To understand FDI inflow in India and to analyze the

challenges and opportunities faced by FDI inflows inDefence sector.

2. To explore the role of FDI in Defence sector and itsimpact on Domestic suppliers of Defence.

3. To study the future outcome towards the phase ofFDI initiated at Defence Sector.

4. To offer suggestions in FDI policy with respect toDefence Sector.

Review Of LiteratureAccording to Transparency International, FDI in a countryis directly linked to its perceived levels of corruption.Every one percent rise in corruption levels decreasesFDI up to five percent. Foreign investors may avoidcorruption as they may believe that it is morally incorrect.In addition, corruption is avoided because it is very risky,difficult to manage and costly (Sauvik Banerjee, AnushaMakka and Ratnesh Kumar 2010). An Assocham studyrevealed that China is leading as the priority hosteconomy for FDI amongst the developing economies andalso the second-largest FDI recipient in the world,followed by Hong Kong (4th), Russia (6th), Saudi Arabia(8th) and India (9th) for the first time have occupied theplace among the top 10 largest recipients (AABCBusiness Bureau (2010).The global inflow of FDI during the year 2009 reduced to$1,770 billion, a decline of 37 per cent over the year2008. Despite the fact that decline in FDI inflows in 2009was widespread across all the three major group ofeconomies, the impact on flows to developing andtransition economies was relatively lesser as comparedto developed countries. Though, the flows to developingand transition economies plunged significantly by nearly32 per cent from their past level, yet this was lesserthan that experienced by developed market of over 42per cent in the same year.

FICCI (2010) reported that the 26 percent FDI cap in thedefence sector has already attracted top overseasdefence OEMs (original equipment manufacturers) likeBAe, EADS, Sikorsky and Lockheed Martin to hugelyinvest in India’s defence sector. Therefore, any increasein FDI cap in a strategic sector like defence will requirecareful thinking and analysis. The Industry Ministryproposed FDI up to 74 per cent in the defence sectorfrom the present 26 percent, stating urgent upgrade ofequipment in the armed forces was needed as a bulk ofthem suffered from obsolescence. The Department ofIndustrial Policy and Promotion (DIPP), however, saidthe hike in the foreign direct investment (FDI) need notmean any commitment on procuring from companies,which have set up the facilities in India. The establishedplayers in the Defence industry should be encouragedto set up manufacturing facilities and integration ofsystems in India with FDI up to 74 percent under theGovernment route. There need not be any commitmenton procurement and these players will have to participatein the RFP to technically qualify and also compete inthe financial bid.According to Anand Sharma (2011) it was important thatIndia should become a manufacturing base for defenseequipment and for that to happen the FDI needs to beencouraged. It is time to bring in high end technologiesin the defence sector to meet our needs and to becomenet exporters of this equipment in the future. FDI playsa pivotal role in the development of India‘s economy.The Government of India’s recent comprehensive FDIpolicy document will expedite the flow of funds into thecountry and pave way for her development (A.Jeyachitraand V. Ravichandran 2011). The global trade isundergoing a significant transformation and there is anopportunity for the developing countries to utilize thisopportunity to their advantage by giving considerableattention to FDI (Dr. Khyser Mohr and Alok Raj Bhatt2011). Assocham (2010) suggest that the Governmentshould increase the foreign investment limit in thedefence sector to 49 per cent for growth of the domesticindustry. The suggested move will allow a significantdegree of control by Indian Government on FDI inflow indefence and encourage domestic industry to seekmeaningful foreign tie-ups. Sushant K Singh (2010)reported that, greater FDI into in defence sector providessubstantial economic advantages. Other than theincreased how of funds from a foreign source, greaterFDI leads to more employment opportunities for the localpopulation. It also means that taxes and other revenueswill ûow back to the local Economy. He recommendsthat the Government of India raise the cap in FDI indefence sector beyond 51 percent. He suggests thatthe cap can be raised by an executive order of theGovernment, and does not require an amendment byParliament.

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Research MethodologyAs the study is exploratory and qualitative in nature an extensive use of secondary data is made. Further thesecondary data pertaining to the study is fathered from Department of Industrial Policy & Promotion (DIPP) reports,leading journals and a number of news items. In order to compare the FDI inflow over the period under study, thepercentage method is used.

Limitation of The StudyThe study suffers from the following limitation.1. The study is limited to Indian defence sector. Hence, the result arrived from the study may or may not be applied

to other countries.2. The result cannot be generalized for the FDI flow in other challenging sectors.

Foreign Direct Investment In IndiaIndia has liberalized foreign investment regulations in key sectors, opening up commodity exchanges, creditinformation services and aircraft maintenance operations. The foreign investment limit in Public Sector Units (PSU)refineries has been raised from 26 percent to 49 percent. FDI in Civil aviation up to 74 percent will now be allowedthrough the automatic route for non-scheduled and cargo airlines, as also for ground handlingactivities. 100 percentFDI in aircraft maintenance and repair operations has also been allowed. There is need to change in the FDI policyis to allow foreign airlines to pick up a stake in domestic carriers has been given a miss again. India has decided to allow 26 percent FDI and 23 percent FII in commodity exchanges, subject to the provison thatno single entity will hold more than 5 percent of the stake. Sectors like credit information companies, industrialparks and construction and development projects have also been opened up to more foreign investment. KeepingIndia’s civilian nuclear ambitions in mind, India has also allowed 100 percent FDI in mining of titanium, a mineralwhich is abundant in India. Sources say the Government wants to send out a signal that it is not done with reformsyet. At the same time, critics say contentious issues like FDI and multi-brand retail are out of the policy radarbecause of political compulsions (Madaan & Co 2010.) FDI in India has increased over the years due to the effortsthat have been made by the Indian Government.FDI in India has in a lot of ways - enabled India to achieve a certain degree of financial stability, growth anddevelopment. This money has allowed India to focus on the areas that may have needed economic attention, andaddress the various problems that continue to challenge the country. The increased flow of FDI in India has given amajor boost to the country’s economy and so measures must be taken in order to ensure that the flow of FDI inIndia continues to grow.

FDI Flows into India

Financial Year (April -March)

Total FDI Flows

Percent of growth over

Previous year

Financial Year (April - March)

Total FDI Flows

Percent of growth over

Previous year

1991-1992 # 165 - 2001-2002 4,065 (+) 65

1992-1993 393 (+) 138 2002-2003 2,705 (-) 50

1993-1994 654 (+) 66 2003-2004 2,188 (-) 19

1994-1995 1,374 (+) 110 2004-2005 3,759 (+) 47

1995-1996 2,141 (+) 55 2005-2006 5,540 (+) 72

1996-1997 2,770 (+) 29 2006-2007 12,492 (+) 125

1997-1998 3,682 (+) 32 2007-2008* 24,575 (+) 97

1998-1999 3,083 (-) 16 2008-2009* 27,330 (+) 11



Note :(i) Including amount remitted through RBI’s-NRI Schemes, stock swapped & advances pending for issue of shares)(ii) FEDAI (Foreign Exchange Dealers Association of India) conversion rate from rupees to US dollar applied, on the

basis of monthly average rate provided by RBI (DEAP), Mumbai.(iii) * Includes Stock Swap of Shares US$ 3.2 billion for the year 2006-2007 & US$ 5.0 Billion for the year 2007- 08.(iv) Variation in equity inflows reported in above Table II-A & II-B for 2006-07, 2007-08, 2008-09, 2009-10 & 2010-11

(Up to April 2010) is due to difference in reporting of inflows through Stock Swap by RBI in the monthly report to DIPP& monthly RBI bulletin.

(v) ** Includes US$ 40 million as Stock swapped during July 2009.(vi) *** Includes US$ 35 million as stock swapped during the month of April 2010.(vii) # From August 1991 to March 1992.Source : Compiled from FDI in India Statistics, Department of Industrial Policy & Promotion, Ministry of Commerce andIndustry, Govt. of India

Table – 1 highlights the fact that there has been positive growth in FDI inflows over most of the years for the period1992-93 to 2010-2011(up to March 2011). During 1997-98, 2002-03, 2003-04 and 2009-10 a negative growth ratewas found in the FDI inflow due to the economic downturn in the world.

Regulatory Regime For The Defence SectorThe policy for Foreign Direct Investment (FDI) in the Defence Sector was first notified vide Press Note 4 of 2001,wherein the Defence Industry Sector was opened up to 100 percent for Indian private sector participation, with FDIpermissible up to 26 percent, both subject to licensing and Government approval. Other than the FDI policy, twoother policy regimes govern the defence sector. These are the Defence Procurement Policy and the IndustrialLicense regime. The Defence Procurement Policy essentially lays down the procurement procedure, which interlaidprovides for an offset policy, necessitating the involvement of a local Joint Venture partner / local supplier. Themodes of discharge of offset obligations could include: (i) direct purchase from or execution of export orders ofgoods or services manufactured or provided by Indian defence Industries (ii) FDI in Indian defence industries andIndian organizations engaged in defence R&D or (iii) discharge of banked offset credits. The Defence ProcurementManual (DPM 2009) covers all revenue procurement and procedures for the registration of firms. It provides themethodology for assessment and registration of vendors, as well as their performance appraisal on technical andfinancial aspects and classification. The defence sector is also subject to an Industrial License (IL) regime, as an ILis mandatory for the defence sector. There are certain specific conditions related to the grant of an IL, which require,interlaid, (i) that the applicant should be an Indian company/partnership (ii) the majority of the Board of Directorsand CEO should be resident Indians (iii) clearance through background checks for foreign collaborators and domesticpromoters (iv) a 3-year lock-in provision. As in April, 2010, 127 Industrial Licenses (ILs) have been issued to privatesector agencies for manufacture of defence equipment. The production through units which are operational ishowever not significant.

1999-2000 2,439 (-) 21 2009-2010** 25,834 (-) 05

2000-2001 2,463 (+) 1 2010-2011*** 19,427 (-) 25

Cumulative Total 146,539

Indian Military Spending As Percentage of GdpYear Value in U.S. $ million Percent of GDP1988 14,092 3.6

1989 15,050 3.5

1990 14,825 3.2

1991 13,842 3.0

1992 13,229 2.8

1993 14,942 2.9

TABLE - 2

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1994 15,008 2.8

1995 15,458 2.7

1996 15,739 2.6

1997 17,422 2.7

1998 18,177 2.8

1999 21,124 3.1

2000 21,798 3.1

2001 22,557 3.0

2002 22,487 2.9

2003 22,989 2.8

2004 26,679 2.8

2005 28,196 2.7

2006 28,365 2.5

2007 28,765 2.3

2008 32,106 2.5

2009 35,819 2.8

2010 34,816 2.8Source : SIPRI (Stockholm International Peace Research Institute) 2011.

This list is based on the Stockholm International PeaceResearch Institute (SIPRI) Military Expenditure Databasewhich calculates military expenditure data for 2010 (inconstant 2009 US$). It also includes military expendituredata and percentage of gross domestic product (GDP).India is one of the largest users and importers ofconventional Defence equipment. It ranks among thetop ten countries in the world in terms of militaryexpenditure. Its cumulative Defence budget (includingboth-capital and revenue expenditure) grew at 13.4percent CAGR during the financial years 2006-2007 (Rs.89,000 crore / US $ 20.11 billion) to 2010-11 (Rs. 147344crore/ US $ 31.9 billion). Approximately, 40 percent ofthis was capital expenditure. According Ernst & Young(2009), nearly 70 percent of our Defence requirementsare met through imports, with only 30 percent beingmet through domestic production.Government’s stated aim, as enunciated in FinanceBudget 2009-10, is to reverse this trend and manufacture70 percent or more of its Defence needs indigenously.The bulk of the domestic production is met either throughthe Ordnance Factories or the Defence PSUs. Evenwhen Defence products are manufactured domestically,there is a large component of imported sub-systems.While the import dependence is very high, there is agrowing perception that the procurement regime has notkept pace with our requirements and there are very fewRequests for Proposals (RFPs) for sourcing of Defenceequipment that have fructified in a timely manner. TheDefence equipment available today is of old vintage andneeds replacement. Only 15 percent of the equipment

can be described as ‘state-of-the-art’ and nearly 50percent is suffering from obsolescence. There is,therefore, an urgent need to enhance the deterrent andoperational capability of the armed forces through upgradation modernization of existing equipment, as wellas acquisition of ‘state-of-the-art’ equipment.The indigenous R&D has not kept pace with therequirements of present day warfare and manufacturethrough transfer of technology to Public Sector Units(PSUs) / Ordinance Factories (OFs) has proved to bean ineffective and slow process. Most of the time, thetransfer of technology itself was not complete, as thesuppliers were more keen to push their own product,rather than indigenizing the production in India. Also, inthe absence of any incremental technology, the OFscould not modernize or upgrade the platforms. As aresult, the PSUs and OFs are getting more and moremarginalized and becoming irrelevant as far as the goalof modernization of the armed forces is concerned. Thisis bound to result in more and more dependence onimports.Most of the global Defence equipment suppliers are onlysystem integrators and they manufacture variousequipment keeping in view the requirements of aparticular order placed upon them. Since the companieskeep on winding-up their operations and changing hands,it is virtually impossible to ensure maintenance andproduct support through their life cycle. This problemexists, in particular, with indigenous equipmentmanufactured with critical imported components. Thisraises the issue of the reliability of Defence supplies in



times of need. Since the indigenous manufacturing capabilities are not well developed, it is difficult to repair,modernize or upgrade the Defence equipment. There is, therefore, a need to have a vibrant Defence industry withinthe country to produce state-of-the-art Defence equipment.Defence industry is highly technology driven and capital intensive. Since, it may take some time for domesticcompanies to acquire a technical edge, it is important to consider the vital question of accessing the technologythrough the modality of allowing foreign companies to set up production bases/ facilities within the country itself.Manufacturing within the country, through foreign capital, with full transfer of state-of-the-art technology will be abetter option than importing the equipment from abroad.

Table - 3Route Wise Fdi Inflows In Defence Industries

Sector With Equity / Cap

S.No. Sector/Activity Percent of FDICap/Equity Entry Route

1.1 Indian Defence industries and Indian organizations engaged in Defence R&DDefence Industry subject to Industrial license under the Industries (Development &Regulation) Act 1951

Up to 26 percent Government route

Source : Compiled from Consolidated FDI Policy-Circular 2 of 2010, Department of Industrial Policy & Promotion, Ministry of Commerceand Industry, Govt. of India

S. No Year FDI FlowsIn Rupees crore

FDI FlowsU.S. $

percent age withFDI inflows

1 August 1991 - Jan 2006 0.237 0.05 0.00

2 Feb 2006 – March 2008 0.237 0.05 0.00

3 April 2008 – March 2009 0.687 0.15 0.00

4 April 2009 - March 2010 0.690 0.15 0.00

5 April 2010 - June 2010 0.690 0.15 0.00

6 July 2010 – March 2011 0.240 0.05 0.00

Statement On Fdi Inflows In Defence Industries Sector(From August 1991 to March 2011) [Amounts in U.S. $ million]

TABLE -4

Source: Compiled from FDI in India Statistics March 2011, Department of Industrial Policy & Promotion, Ministry of Commerce andIndustry, Govt. of India

Table - 4 Shows FDI inflows in Defence Sector of the period August 1991 – March 2011.Till March 2011 an FDIinflow of US $ 0.15 million has been received by India in this sector, comprised of percent of total FDI inflows duringthe period August 1991 to March 2011.

CONCERNS RELATED TO LIBERALISING THE FDI REGIME FOR THE DEFENCE SECTORThe flow of foreign capital and technology can be used as a tool for strengthening the Defence PSUs and OrdinanceFactories. In areas where the Defence PSUs are capable of managing themselves like some of the ammunitionfactories, the Government need not give license to a manufacturer in the private sector. FDI could lead to ownershipand control of firms operating in a critical and highly sensitive industry being passed on to foreign hands. It couldlead to an increased dependence on foreign investment, for meeting our Defence needs. Taken to an extreme, thiscould lead to a situation where a clear relationship of dependency, in terms of foreign capital and technology,develops with regard to investment drawn from specific countries / blocs.There can be an issue of export of Defence equipment manufactured in India and exported to inimical countries. Asof today, a significant number of export restrictions already exist to take care of this concern. Such restrictions canbe strengthened, if need be. There is a general concern about the internal security aspect of manufacture ofDefence equipment especially small arms and ammunition. This concern can be met by devising a strong surveillancesystem in each factory/unit. This could include posting of Defence/security personnel on a whole time basis tothese locations.

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The Case For Increasing FDI CAPThere could be significant advantages to be gained fromraising the FDI cap in Defence. It could provide asignificant incentive for transfer of know-how/technology,leading to higher levels of technological expertise.International experience suggests that this would leadto significant spin-offs, in terms of absorption of suchtechnologies, into related areas of civilian use.As the Defence industry is highly capital intensive it wouldbe difficult for our indigenous Defence industry to developwithout the supplemental funds made available throughFDI. Higher levels of foreign investment would reducethe corresponding fund requirements of the Indianpartners. At the same time, this would promote growthand expansion of Indian companies in the Defence sector,over which the Government can exercise higher control,as compared to overseas firms/entities.A large share of Indian foreign exchange goes towardsDefence purchases. Allowing more FDI in Defence wouldresult in significant savings in foreign exchange, as moreforeign companies will establish defence industries inIndia.Challenges1. Modern defence requirement requires high technology

and huge capital.2. Maximum defence requirements are met through

imports.3. Though products are manufactured domestically

there is large component of imported sub-systems.4. Defence equipments available today needs

replacement as they do not keep pace with presentrequirements.

5. Indigenous R and D could not make tremendousprogress.

6. Many ordinance factories and DPSU's have beenusing old technology.

7. Imported equipments are out-dated for various reasonse.g. non-availability of parts (BhartiyaMazdoorSangh2010).

The FDI limit can be increased to 49 percent only sothat our domestic companies will get an upper hand andPSUs truly independent in defence sector. 49 percentFDI will allow control of a company to remain in the handsof Indians. Another challenge of FDI is that there is achance that a company may lose out on its ownershipto an overseas company. This has often caused manycompanies to approach FDI with a certain amount ofcaution. The investor does not have to be completelyobedient to the economic policies of the country wherethey have invested the money. At times there have beenadverse effects of foreign direct investment on the balanceof payments of a country. The public and private sectorsin India are not yet delivering the aspiration of greater

self-sufficiency in the defence sector. Many foreignentrepreneurs have complained that Indian policy seemsto have been drafted more to perpetuate the monopolyof the public sector rather than invite FDI.Restricting the limit of FDI to 26 per cent has beenchallenged by certain foreign companies as they believethat it acts as an inhibiting factor towards their entryinto the Indian defence market. Despite the attractivepipeline of projects issuing from the Ministry of Defence,certain foreign vendors feel that, where Transfer ofTechnology (ToT) is involved, the returns are likely to begenerated on the basis of current FDI regulations,coupled with the lack of control they would have overthe technologies and know-how they are being asked toprovide, makes entry in to the Indian market anunattractive proposition. Further, a number of foreigncompanies have stated their intention of developing Indiaas a ‘home market’, e.g. both a major domestic salesmarket and a global manufacturing hub, but the currentFDI restrictions currently constrain their ambitions inthis regard. Despite the inducements of the industrialplayers the Government of India decided not to revisethe limit of FDI percentage in a new company. Therefore,26 percent limit in FDI remains.OpportunitiesIncreased cap in FDI attracts foreign technology andposition India as a global hub for defence production.Currently companies’ from India do not have thetechnological edge or the funds to compete with foreigncompanies and it may take some time to acquire them.Thus, it is important to assist the companies by allowingforeign companies to set up production facilities withinIndia.It was needed to make India a defence equipmentmanufacturing country. It was important that India shouldbecome a manufacturing base for defence equipmentand for that to happen the FDI needs to be encouraged.The raising of the FDI limit to 49 per cent would go along way in reducing the risk of Indian companies besidesproviding them an opportunity to access technical andmanagerial skills of the foreign companies to rise up theglobal value-chain rapidly.FDI in defence industry is indeed essential because mostdefence products involve a relatively high level oftechnology and this technology gets transferred only ifthe foreign partner has a long term stake in the company.The aim of seeking FDI by India in its defence sectormay be to get both funds and technology. But given thepresent comfortable economic environment, it is primarilydefence technology that India needs desperately.India is expected to spend about $30 billion in the nextfive years to meet the modernization and upgradedemands of the Indian military, and there is an offset



market of around $10 billion that offers good opportunitiesfor foreign companies to tie up with Indian companies(Vivek Raghuvanshi 2010).

FindingsCountries maintain armies because it's the state's dutyto protect its citizens. In the 20th century, countriesstarted to pursue organized defence research to ensuretheir military is well equipped. This led to some of thegreatest inventions of modern times, notably the Internetand rockets. The process also resulted in theestablishment of massive industries making deadly warmachines, employing millions and generating billions insales. India has the dubious distinction of heading thelist of the world's biggest arms importers. The listincludes undemocratic oil-rich countries in West Asia.India's defence budget rises year on year. Given the two-pronged threat from Pakistan and China and concernsabout the Indian Ocean, India is expected to remain avoracious consumer of military equipment for theforeseeable future. India spends more than 3 percent ofGDP on Defence or $30 billion. More than 70 percent ofIndia's defence purchases are from firms in Russia, Israel,Europe and the US. India is currently the biggestimporters of arms. India’s defence import: export ratiois 194:1It is an agreed position that the defence industry istechnology driven and capital intensive and requires alonger gestation period. The Indian economy is now the5th largest in the world with many Indian companiesbecoming multinational corporations. Indianentrepreneurs are acquiring International Corporation ina variety of sectors such as telecom, automotive, power,steel etc. Given the size of our defence acquisition, webelieve there will be a number of foreign OEMs willing totransfer technology to their Indian partners. It must beunderstood that the Indian defence industry is in itsnascent stage and will be able to absorb thesetechnologies rapidly and establish self retaining industrialcapabilities. Allowing foreign companies control greaterthan 26 percent would be equivalent to selling out ourinternational defence interest for short-term gains at thecost of strategic, tactical and economic losses to thenation. Rather than follow any model of any other countryto be used as a template for development of our defenceindustry, we should formulate our own growth path forthe development of our indigenous resources andcapabilities to fulfil our defence needs.From Government‘s point of view, raising the FDI capsignificantly would seriously damage India’s nascentdefence industry. The MoD’s opposition, however, toincreasing FDI caps stems from the fear that the entryof large private manufacturers will lead to job losses withDPSUs and Ordinance Factories and also lifting the 26percent FDI cap rate can hinder the national security.

From investor’s point of view, the problem with thepresent 26 percent ceiling on FDI in the sector is that itlimits the economic incentive to the foreign investor. FDIin defence sector will bring its best capability (skills,technology, people) if it secures a fair return oninvestment. This is the only way we will be able to ensuregainful employment and sustainable income for a large(number of) young people.According to DIPP, if the defence sector is opened toFDI, its impact upon the manufacturing sector in Indiawill be great. At present, foreign companies are allowedto invest only 26 per cent in Indian companies. Some ofthe global defence giants such as BAE Systems hadproposed to start a joint venture with Mahindra DefenceSystems with 49 per cent stakes but it did not getGovernment's approval.There is a balance struck between increased FDI flowand national interest. India could institute a policyframework to encourage foreign participation in terms offinancial investment, technological knowhow,manufacturing expertise and marketing skill to not onlymeet the domestic requirements but also to cater to theexport market. As an exporter of defence hardware, Indiawould be in a position to expand its sphere of influence.Therefore, Government needs to give Indian industry afair opportunity of development, involvement andparticipation by revising the existing FDI cap in thissector.RecommendationsWith significant success in attracting domestic andforeign private investment, this sector should be subjectto minimal regulation/ restrictions with the focus oncreating opportunities for greater investment andcompetition. The recommended strategy to enhanceinvestment requires policy interventions at Defence sectorlevel, especially facing significant impediments.1. The foreign collaborator should bring in a high level

of specialized technologies into the country whichare at present not available in India.

2. The Joint Venture (JV) should undertake to set upfully fledged R&D facilities in India and the IntellectualProperty Right (IPR) for all new technologiesdeveloped should vest with the Indian company.

3. Ownership and management control of the JV mustalways be in the hands of the Indian partner.

4. Entry of foreign players must be gradual and withsocial safeguards so that the effects of the labourdislocation can be analysed & policy fine tuned.

5. Gap between requirement and availability of defenceequipments should be found out. Armed forces shouldbe consulted in the matter. Ministry of defence, Armedforces experts, DRDO scientists, etc., should consultinternally and prepare plan. Plan should take into

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consideratiton present requirement and availability,Investment, Technology, skills, capacity, Researchand Development, scope, time etc., aspects.

6. The critical issues regarding the safeguardingprovisions for the Environment need to be discussed.This provision will only bring the genuine investorsinto India.

7. India does not lack either money or the resources',rather technology-gap is the real concern. EmpiricallyFDI & transfer of technology are not always directlyproportional, so raising FDI is no guarantee for truetransfer of technology. In order to alleviateunemployment and poverty it is suggested to lift theFDI cap in this strategic sensitive sector to 49 percentwith the revised policy.

As for the DIPP, it has concluded that the 26 per centFDI cap has failed to attract modern technologies in thedefence sector and the increase of FDI cap to 49 percent will not give any additional say to the foreign investorin the affairs of the company under the Companies Act.Hence, this minor hike will not attract the best technologypartners for India. However if the FDI up to 74 percent isallowed, it may certainly bring the more and moreinvestors but lower genuine investors.

ConclusionIndia's massive defence budget has the potential to makeher a global manufacturing and services hub in Defence.With the objective of attracting foreign investment toenhance the domestic industrial capability in the areaof defence production, there is a need to increase the26 percent FDI cap. Indian defence imports are dutyand tax free while there are great barriers to investment.This creates disincentives to investment in India. Infact,because of the indirect tax structure, it is cheaper tomanufacture aboard and sell directly to MoD. There istherefore, a strong and compelling case to increase theFDI cap in the defence sector. This will facilitate andgive a boost to indigenisation of the sector and help indeveloping capability so that Indian industry can leveragethe opportunities arising out of India's massive defenceacquisition programme.Defence industry is highly technology driven and capitalintensive. Since, it may take some time for domesticcompanies to acquire a technical edge, it is importantto consider the vital question of accessing the technologythrough the modality of allowing foreign companies toset up production bases / facilities within the countryitself.Therefore raising the FDI cap must be to encouragemanufacturing in India ,building of assets in India ,trainingof Indians in advanced technology defence production ,creating a networks of components , spares and serviceproviders so that a complete infrastructure for defence

production is built up in the country. The objective shouldbe a threefold, first should be to eradicate the dependencyon imports from foreign enterprises to meet our defencerequirements. Secondly, by exporting such equipments,arms, ammunitions, techniques and know – how to othercountries , India can generate huge revenues and thirdshould be to provide employment in such defence zonesthereby increasing employment which can aid ineradicating problems of unemployment and therefore helpreduce poverty.Small scale industry sector from States such as AndharaPradesh, Karnataka, Tamil Nadu and Maharashtra areasking to open up the FDI in the defence sector whichwill generate big business for them and also will openup massive employment opportunities. It will also cutdown the role of touts and middlemen in the defencedeals.References1. Chakraborty C.; Basu P, Foreign direct investment

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17. Discussion Paper on FDI in defence sector (2011)by DIPP, Gov. of India. Retrieved on 17 May 2010.Available on: http://dipp.nic.in/DiscussionPapers/DiscussionPapers_17May2010.pdf.

18. Assocham (2010), Allow 49 percent FDI in defencesector

19. Available on - http://articles.economictimes.indiatimes.com/2010-08 15/news/27602322_1_defence-sector-defence-budget-cent-overseas-investment.

20. 123- Sauvik Banerjee, Anusha Makka and RatneshKumar "FDI in India and China - A ComparativeAnalysis" MBA Leeds University Business School,UK.http:/ /www.coolavenues.com/know/f in/sauvik_banerjee2c.php3

21. 1234 AABC Business Bureau (2010), India amongtop 10 FDI destinations.

22. http://www.aabc.co.in/india/845-india-among-top-10-fdi-destinations.html

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AN OPINION STUDY ON PASSENGERS SATISFACTION ON CRC BUSTRANSPORT LIMITED, KUMBAKONAM

S.Dhanalakshmi1 U.Priya2

Abstract

Public transport should become part of a solution for sustainable transport in the future. However, in order to keep andattract more passengers, public transport must to have high service quality to satisfy and fulfill more wide range ofdifferent customer’s needs. It is important to summarize knowledge about what drives customer satisfaction anddissatisfaction in public transport area to design an attractive and marketable public transport. The focus of this thesisis Indian Public Transport where the number of private vehicles is increasing rapidly. In addition to congestion, privatemotorization is also affecting the safety of vulnerable road users, high consumption of non- renewable resource andcauses serious threat to the quality of human environments. In order to prevent more problems caused by thisincrease in motorization it is highly recommended by many researchers as well as public decision makers to providean attractive public transport service as an alternative transport mode in many cities. . Therefore, researcher made anattempt to conduct investigation of passengers satisfaction on CRC bus transport.

Key Words : Public, transport, customer, private.

INTRODUCTIONRapid motorization is drive from car and motorizepreference in choosing travel mode in fulfill customertravel demand. According to several studies that the writersummarize in previous report, preference of using carbecause public transport still could not compete withthe attractiveness of private car or motorcycle, such aslow flexibility, no direct access, longer travel time andunsafe when traveling with public transport.The transport is playing an important role in the economicdevelopment of the country by creating opportunities andperforming national economic activities. Transport is thechannel of social and economic interaction involving thephysical movement of people and goods. The service ofquality has been an essential strategic component forservice expectations like passenger transport attemptingto success and survive in the current competitiveenvironment.

Statement of the problemThe public transport sector in developing countries isregarding with majority unit composed by small-sizedvehicles, owned and operated (or leased) by singleindividuals Most drivers are low – skilled young men whomigrated to cities from the countryside. Overabundancesof idle labour in developing countries makes informaltransport an attractive employment opportunity. Thiscondition leads to ignorance of passenger’s safety anddiscipline in using road.Informal transport vehicles are often low – performingand old. The informal sector almost always delivers

1 . Research Scholar, Department of Commerce, Bon Secours College for Women, Thanjavur2. Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

paratransit-type services. These services are either door-to-door or flexible enough to deviate from standardroutes. Pricing is similarly flexible. Informal servicesoperate often in a laissez-faire environment, promptingoperators who survive on low profit margins to activelyand sometimes dangerously, compete for customers.Almost all type of Indian public transport services stopalmost anywhere to board passengers, there areoverloaded passengers, and unsafe driving habits.Sometimes they only offer frequent services at peakhours and in peak directions, while leaving off-peak riderswaiting until certain amount of seating capacity is filledwhich may take more than an hour.

Objectives of the Study• To study the needs and analysis of passengers

satisfaction• To study the, how to maintain relationship with

passengers• To understand, with the help of feedback from the

passengers’ satisfaction in CRC bus.• To suggest suitable measures for improving the Public

bus (CRC) services in passengers.

Importance of The Study• An increase in population generates increasing in

travel demand.• Nowadays, India deals with an explosive growth in

vehicle ownership and utilization. An increased roadlength and new roads generate faster and longer trips,more trips by car and higher car ownership all of addsup to more congestion and pollution.



• Public transport CRC is one important solution forthis problem

• Public transport CRC operators are forced to placeemphasis on the monitoring and improvements of theservices provided in an attempt to address theincreasing rate of car ownership

• This study focuses on customer satisfaction withservice quality attributes. Using self rate questionnaireto investigate overall customer satisfaction and factorthat influence public transport user’s satisfaction.

Research DesignThe research design is the blue print of the entire research.The descriptive research design used in this studies.

Sources of dataThe data was collected from primary and secondary data.

Universe of the studyThe universe for this study consisted of the totalpopulation of Kumbakonam Taluk. The whole populationis 1,39,954 people.

Sampling method and sample sizeThe research has selected simple random samplingunder the heading probability sampling method.

Sampling method and sample sizeThe researcher used simple random sampling techniquesi.e table method and selected 250 samples from theuniverse.

Scope OF THE STUDYThe India since has a wide range of public transport, thestudy will be conducted to measure the conventionalpublic bus transport. The study of conventional publicbus transport is important sign to makes it up, theconventional public transport one is majority of the publicbus transport in our country.• Analyze the change in public transport performance

due to the deployment of modern buses andimplementation of reforms under the terms of publictransport efficiency, effectiveness, safety andenvironmental impact criteria.

• Document and compare the impact to reforms relatedto the bus modernization program including settingup special vehicles (SPVs), changes in network androute structure, changes in operations andmaintenance practices, construction of depots , ITSimplementation and others.

• Analyze the change in bus user satisfaction due todeployment of modern fleet sanctioned and relatedreforms.

• Propose national strategies and policies required tofurther enhance the public transport systems in Indian

cities based on the lessons learned by theKunmbakonam Taluk to be applied future initiatives.

Review of LiteratureShinde et al., (2011) I n their article revealed that in theabsence of a good quality public buus transport, peoplereject the use of it, and take alternative mode likeautotickshaw, two or four wheelers etc. thus it adverselyaffects the revenues of urban public bus transportundertakings and result in traffic congestion.Ravi. (2010) In his article stated that the percentage ofpopulation living in rural areas is high and everybodyfeels that rural transport is of utmost importance. Hehas also mentioned the urgent need to develop a scientificmethodology for the assessment of rural network ofhierarchal importance and wider range of connectivity.

Company ProfileThe Government in the 1972 nationalizing the privatemajor bus operations formed to CHOLAN ROADWAYSCORPORATION.

Objectives / Purpose Of The CorporationThe objective of the corporation is to provide efficient,economical and co-ordinate transport facility to the publicin the jurisdiction of Thanjavur, Thiruvarur, Nagapattinum,Trichirappalli, Karur, Sivagangai, Ramanathapuram andPudukkottai Districts. Accordingly the corporation isoperating 2078 Moffussil and 1210 town buses. Thecorporation has been registeres under companies act,wholly owned by the Government and all the share areheld by the government of Tamilnadu and its nominees.

VEHICLE DETAILSThe Kumbakonam division consists of 975 vehicles.Among these categories are1. Town - 3162. Moffussil - 673. Spare - 98

Total - 481

Data Analysis and InterpretationDistribution of the respondents by their Age

Age No. of Respondents %

Below 20 yrs 45 18

20 yrs – 30 yrs 104 42

3yrs – 50 yrs 63 25

Above 50 yrs 38 15

Total 250 100

• Majority of the respondents (42%) belong to theage group between 20yrs – 30yrs.

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Distribution of the respondents by their Residential area

Age No. of Respondents %

Center of the city 79 31

Outskirts of city 113 45

Suburbans 41 17

Others 17 7

Total 250 100

• 45% of the people live in outskirts of the city

Opinion based on how often they take bus transport asa transport measure

Transport measure No. of Respondents %

Daily 115 45

Once in a week 42 17

Once in a month 17 7

Rarely 6 3

Others 70 28

Total 250 100

• 45% of the respondents said that they are usingbus transport daily.

Distribution of the respondents by their Travel reason

Travel Reason No. of Respondents %

School / College 138 55

Work 72 28

Shopping &Entertainment 25 10

Any other 15 7

Total 250 100

• 55% of the respondents said that they are usingtravel reason for school / college purpose

Opinion based on overcrowded in peak hours

Opinion No. of Respondents %

Always 93 38

Sometimes 92 37

Rarely 40 15

Never 25 10

Total 250 100

• 38% of the respondents opinioned that always thebuses are over crowded in peak hours.

Overall satisfaction with this trip


Satisfied 71 34

Dissatisfied 179 66

Total 250 100

• 66% of the respondents opined that they aredissatisfied the overall satisfaction with this trip.

Suggestions• The public buses to be improve the facilities like as

private buses.• The bus trips schedule should be followed properly• The buses to be increase in peak hours• The Kumbakonam to Thanjavur trip special buses

are maintain properly and check the condition to everyweek.

ConclusionIn this study, we have tried to know the passengersatisfaction on CRC bus transport limited, Kumbakonam.The passengers satisfaction is highly increasingmotorization in Kumbakonam . It causes many problemsin traffic congestion, a high level of pollution, a high levelconsumption non – renewable energy resource, a threatto quality of life and high number of traffic accidents.Public transport should become the solution forsustainable transport in the future, which is the reasonto increase customer satisfaction. High quality publicbus transport not only keep customer to continue usingpublic bus transport to fulfill their travel demand but alsoattract the customer. The functional factor has a stronginfluence on customer satisfaction and need a higherattention to improve customer satisfaction.

References1. Anderson, E.W., Fornell, C. and Rust, R.T., 1997,

Customer Satisfaction, Productivity, and Profitability:Differences between Goods and Services, MarketingScience. Vol. 16, No. 2, pp. 129-45.

2. Sunder – A research study, “Indian Journal of transportmanagemenet, Volume No. 33 No. 4 (October –December 2009) pp278-297

3. Bennett, R. and Rundle-Thiele, S. (2004), "Customersatisfaction should not be the only goal", Journal ofServices Marketing, Vol. 18, No.7,pp.514-23. Kotler,P. (2003), Marketing Management, PearsonEducation, Delhi.

4. Malhotra, N. (2006), Marketing Research: An AppliedOrientation, Pearson Education, New Delhi.

5. Mohan. S “Labour Productivity of Tamil Nadu stateTransport corporation” The IIUP Journal ofinfrastructure, Voluime VIII, Nos. 1& 2, 2010.



A STUDY ON THE QUALITY OF WORK LIFE OF EMPLOYEES AT THEDALMIA CEMENT( BHARAT) LTD.,

Sr. Mary Christina1

Abstract

Quality of Work Life deals with various aspects of work environment, which facilitates the human resource developmentefficiently. Thus, Quality of Work Life helps in the development of human resources. This study is to find out the socioeconomic background of the employees and their Contribution to Quality of Work Life. Respondents were selectedfrom the Dalmia cement co Ltd so the researcher adopts the simple random sampling technique using the lotterymethod. The researcher selected the respondents from all categories of employees by using simple random sampling.From the study we can arrive at the conclusion that the quality of work life contributes to the workers’ performance ina holistic manner. The study also helps us to know the loop holes of the Company in providing the workers’ basicnecessities. It also helps us to know how the workers are treated by the management which in turn will help theworkers to identify the ways and means to address their grievances.

Keywords : Socio Economic status,Quality of Work life.

1. Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

IntroductionOrganizations are made up of people and function throughpeople. The resources of men, money, material andmachinery are collected, coordinated and utilized throughpeople. They are the most significant resource of anyorganization. The success of an organization dependson effective Human Resource Development. Thetraditional approach to Human Resource Developmentis through training of employees. But training has alimited role in developing the people. People develop notonly through training but also the way the organizationworks. The task a person has in the organization alsodetermines his development. Human ResourceDevelopment includes both training and jobenvironment.In order to maintain the balance, theorganization should start looking after the human,emotional and social needs of the workers at workplaces.Quality of work life produce more humanized job.It seeks to serve the higher-order needs of workers aswell as their basic needs. It seeks to bring out the higherskills of workers and provide an environment thatencourages them to improve their skills. The basicassumption of humanized work is that it is mostadvantageous when it provides a best fit among workers,jobs, technology and the environment.

Title of the Study"A study on the Quality of Work Life of employees atDalmia Cement (Bharat) Ltd., Trichy

Statement Of The ProblemThe concept of Quality of work lifeof the employees isfast spreading to nearly industrializing countries includingIndia. It is a healthy trend to be aware and appreciate it.This study generates data that contribute to the

improvement of almost all Human Resource activities. Italso helps the organization to know about the presentcondition of the Quality of work life of the employees.The scope of the study lies in finding the strength andweakness of the Quality of work life programs so thatthe organization can concentrate on those aspects andcan improve further.

Objectives of the Study• To examine and analyze the factors or dimensions

involved in Quality of work lifeof the employees.• To study the existing relationship among workers,

between workers and supervisors and workers withmanagement.

• To find out the working condition at work place.• To find out the opportunities for motivation, training

and development of workers.

Research DesignThe research design is the conceptual structure withinwhich research is conducted; it constitutes the blueprintfor the collection, measurement and analysis of data. Itis a logical framework for directing a research study. Itis descriptive and diagnostic in nature.

Sample DesignA sample design is a definite plan for obtaining a samplefrom a given population. It refers in the technique or theprocedure the researcher would adopt in selecting itemsfor the sample. Sample design may as well lay downthe number of items to be included in the sample. Outof the total population the researcher selected non-probability sampling, this does not afford any basis forestimating the probability that each item in the populationhas of being included in the sample.

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Sample SizeThe number ofrespondents considered for sampling is 50.

Data CollectionThe researcher has collected both primary and secondary data from the study unit.

Primary DataThe primary data are those, which are collected afresh and for the first time, and this happen to be original incharacter. The researcher collected the primary data from Dalmia Cement (Bharat) Ltd., workers directly with thehelp of interview schedule.

Secondary dataThe secondary data are those which has already been collected by someone else and which have already beenpassed through the statistical processes.

Secondary data was collected though :• Company Profile• Office record• Text books• Websites

Statistical AnalysisThe data collected were carefully analyzed and processed statistical techniques. Percentage method and chi-square test were applied to draw meaningful inferences.

Hypothesis1. There is no significant association between qualification of respondents and their job satisfaction.2. There is no significant Association between the experience of respondents and level satisfaction of their compensation.

Review of LiteratureB. Alireza et al (2011) researched on the Relationship between Quality of Work Life and Demographic Characteristicsof Information Technology Staffs Relationship b/w QWL and demographic characteristics of IT staff with objectiveMeasure the relation b/w QWL and demographicsD. Chitra et al (2012) focused on Employees’ Perception on Quality of Work Life and Job Satisfaction in manufacturingorganization – an Empirical study. The objective was to find the perception of employee’s impact on Job satisfaction.Convenience sampling method used for the data collection and questionnaire received 251 employees out of 460employees.Z . Amin (2013) studied on the Quality of Work Life in Indonesian Public Service Organizations to predict the roleof Career Development and Personal Factor. Five hundred and ten questionnaires (including scales of Quality ofwork life and career development) were distributed among employees.S. Khodadadi et al(2014) investigated the QWL dimensions effect on the employees’ job satisfaction. In thisstudy independent variables were permanent security providing, salary and benefits payment policies, developmentand promotion opportunity, and job independence, job satisfaction as the dependent variables.

Results and Discussion

Sub division Particulars No. of. Respondents (n: 50) Percentage

a Strongly Agree 6 12

b Agree 25 50

c Disagree 19 38

Table - 1 : Distribution of Respondents By Their Opinion About Linkage of Reward To Job Performance

InferenceFrom the above table it is inferred that 50% of the respondents agreed that there is linkage of reward to jobperformance, 38% of the respondents disagreed that there is linkage of reward to job performance and 12% of therespondents strongly agreed that there is linkage of reward to job performance.



Table - 2 : Distribution of Respondents By Their Opinion About Fringe Benefits Provided

InferenceFrom the above table it is inferred that 66% of the respondents stated that all the above said benefits are provided,14% of the respondents stated that Medical expenses are provided and 10% of the respondents stated that Petrol,Diesel reimbursement and Leave travel cash are provided.

Sub division Workload No.of.Respondents(n: 50) Percentage

a Highly satisfied 9 18

b Satisfied 15 30

c Dissatisfied 21 42

d Highly Dissatisfied 5 10

Table-3 : Distribution of Respondents By Their Opinion About Work Load

InferenceFrom the above table it is inferred that 42% of the respondents are dissatisfied with their workload, 30% of therespondents are satisfied with their workload, 18% of the respondents are highly satisfied with their workload and10% of the respondents are highly dissatisfied with their workload.

Qualification Satisfied Neutral Dissatisfied Total

SSLC 2 2 1 5

HSC 6 4 2 12

ITI/Diploma 19 2 3 24

UG 5 4 0 9

Total 32 12 6 50

Table - 4 : Association Between Qualification of Respondents And Job Satisfaction

Null Hypothesis H0 :There is no significant association between qualification of respondents and their job satisfaction.

Chi-square Test :

EWhere,

Oi = Observed frequency Ei = Expected Frequency Ei = RT X CT

GTWhere,

RT = Row Total CT = Column TotalGT = Grand Total

χ2 = ∑ (Oi-Ei)2

Sub division Fringe Benefits No.of.Respondents(n: 50) Percentage

a Medical Benefit 7 14

b Petrol, Diesel reimbursement 5 10

c Leave travel cash 5 10

d All the above 33 66

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Expected Frequency ( Ei )

3.2 1.2 0.6

7.68 2.88 1.44

15.36 5.76 2.88

5.76 2.16 1.08

Xi Ei (oi- Ei)2 (oi- Ei)

2/ Ei

2 3.2 1.44 0.45

2 1.2 0.64 0.27

1 0.6 0.16 0.27

6 7.68 2.8224 0.3675

4 2.88 1.2544 0.4355

2 1.44 0.3136 0.2178

19 15.36 13.2496 0.8626

2 5.76 14.1376 2.4544

3 2.88 0.0144 0.005

5 5.76 0.760 0.578

4 2.16 1.840 3.386

0 1.08 1.08 1.166

Total 10.723

E

χ2 = ∑ (Oi-Ei)2

Degree of freedom= (r-1) (c-1)= (4-1) (3-1)= 3 X 2= 6

ConclusionSince calculated value of ???is less than the tabulatedvalue, Null hypothesis is accepted.So it concludes that there is no significant associationbetween qualification of respondents and their jobsatisfaction.Findings• 50% of the respondents agreed that there is linkage

of reward to job performance.• 66% of the respondents stated that all the benefits

are provided.

• 42% of the respondents were dissatisfied with theirworkload.

• 52% of the respondents are satisfied with thecompensation

• 56% of the respondents were satisfied with theirworking condition.

Suggestions1. Organization should take necessary steps to reduce

the dust emission in the plant2. Organization should provide personal protection

equipment for safe working.3. The Organisation can conduct motivational

programmes in order to emphasis Teambuilding.4. Better non-monetary benefits and reward system

should be provided to motivate employees to improvethe Quality of work life.

CONCLUSIONThe study about Quality of work life of the employee ofDalmia Cement (Bharat) Ltd., Trichy states thatemployees were satisfied with the work life. It is alsofound that the Quality of work life in this organization ismaximized. So we can conclude that management haveplayed a vital role in increasing the Quality of work lifeofthe employees. The researcher have made an attemptto suggest some measures to improve the Quality ofwork lifeof the employees. Thus the management canmake use of the suggestion made in this study for theirupliftment

ReferencesI BOOKS• ASWATHAPPA.K. Human Resource and Personnel

Management Third Edition, Tata McGrew – HillPublishing Company Limited – New Delhi, 2003.

• KOTHARI.C.R. Research Methodology New AgeInternational Publishers Second Edition – 2004.

• MAMORIA.C.B. Personnel Management, TwelfthEdition, 2000 Himalaya Publishing House.

• TRIPATHI.P.C. Personnel Management and IndustrialRelation First Edition, Sultan Chand & SonsEducational Publisher – New Delhi 2002.

• MOHAN & ELANGOVAN Human ResourceManagement Regal Publications, New Delhi.

II. WEBSITESwww.google.com, www.allbusiness.com,www.yahoo.com



A STUDY ON CONSUMER SATISFACTION TOWARDS EDUCATIONLOAN IN THANJAVUR TOWN

S.Maheswari1

Abstract

This study deals with a study on customer satisfaction towards Education loan in Thanjavur town. The main objectivesof this study is to know about the customer expectation is the key for the success of any organization. The main reasonfor taking this study to know the preference of education loan and to examine the goals of up gradation of newschemes and objectives of the organization and to know how the satisfaction level of customer. In this project surveymethod is conducted to collect the information from the respondents. The questionnaire method is used to collect thedata from the respondents. The project aims at developing the education loan and analyze the drawbacks and toreduce the limitation s which leads to increase the satisfaction level of the customer.

IntroductionStudents financing are the method of support for studentsin higher Education. Money is loaned too students at asubsidized rate to help towards their maintenance costsand to cover the cost of tuition fees. Graduates repaythese loans to the government after their income exceedsthe threshold level. These loans are therefore a methodfor private contributions towards the costs of higherEducation. An aim of the students support system is toensure that the upfront costs do not deter potentialstudents.Now Education loans are easy available fromvarious banks in India and is encouraging more and morestudents to take up higher Education despite theirfinancial shortcomings. Many nationalized as well asprivate banks have come up with various Education loanschemes that students ca benefit from. The presentstudy is carried out in the Thanjavur District regardingthe customer satisfaction towards Education loan.Theaim of this study is to examine the students satisfactiontowards Education loan and compare male and femalestudents with respect to various loan features like valueAddition, Mortgage, Effectiveness, Eligibility Criteria,Procedure or Convenience, Disbursement and Rate ifInterest regarding Education loan.

Objectives• To consumer satisfaction towards Education loan.• To know about the customer preferences.• To give suggestions for improvement of quality of

services in banks.• To understand customer perception of interest

service quality.• To know the benefits of Education loan schemes to

the students.

1 . Assistant Professor, Department of commerce, Bon Secours College for women, Thanjavur.

Scope• To procedure of getting loan should be easy to

understand.• To rate of interest should be low.• To study was based on various aspects of customers

perception regarding products and services of banks.• To know in which service quality dimensions the bank

is performing well and in which dimension it needsimprovement.

• To get suggestion for improvement or changes in theservices of banks.

Research methodologyThis study used the descriptive and exploratory researchdesign analyzing of secondary data combined withshared thoughts of research’s academics peers andexperts in finical service has given solid based fordescriptive analysis. the perceptional analysis to explorethe opinion of the students and 250 respondents selectedin convenience sampling .pilot tested structuredquestionnaire method is used in this study .

Data collectionIn this study primary and secondary data were usedand Sampling techniques were used.

Limitation of this study• A time constraints was on eof the major limitations

of the study.• Only limited time was spent for doing the survey.• The study is limited to the study of expectations of

and perceptions of customers having an account inbanks.

• Primary data has its own limotations.• The study relies on primary data which could be

biased and this study sample size only 250 respondents.

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Data analysis and Interpretations :

Table - 1 : Demographic Profile of theRespondents

Sl.no Age Frequency Percentage

1. upto 25 23 31

2. 26-35 24 32

3. 35 & above 28 37

Gender

1. Male 42 56

2. Female 33 45

Occupation

1. Student 37 49

2. Self Employed 26 35

3. Professional 45 57

Types of Bank

1. Public 44 59

2. Private 31 41Source : Primary data

Table no : 1 showing the details of socio – economicprofile of 250 respondents in Thanjavur in this tablecovered age gender occupation education of respondentsand types of bank of the respondents.

Table - 2 : Users knowledge about the Feature of Education loan

Suggestions• The banker should maintain their services and dealing

with customers• The students studying in the professional colleges

avail the highest amount of the education loan.Therefore the bank should take some initiatives.

• Estabilizing branches in every possible area wouldbe better way to progress. This would really helpbanks to create more accounts give more reach tothe banks

ConclusionSatisfaction level with regard to courtesy shown by bankstaff at the counter is very low. Therefore banks shouldpay special attention to human resource development,by giving timely training to the employees to conductthemselves better. All branches of banks should providedifferent facilities like parking, seating arrangement,drinking water and sanitary places.To develop the socialbanking environment, bank officials should maintain goodrelationship with the customers.

Reference

1. Dr.Manasa Nagapushpam:A Study on customerservice qualityin India.

2. Linda mary Simon(2010)volume 1, issue 123. Pallavi A.Shah(2012): A Study of perception of

customer towards e-banking services in thane city-Maharastrs,India.

4. Safeena ett al (2010) the study on consumerperception on interest banking adoption.

5. Shikh Agawal: Indian services sector a case studyof Banking sector.

In this table shows majority of 73 respondents is user’sknowledge about the features of Education loan users.

Table - 3 : Eligibility of Education loan

Sl.no Courses Response Percentage

1. Full time 27 36

2. Correspondence 27 36

3. Part time 11 15

4. Distance 10 13

Source : Primary data – survey

Sl.no Response Percentage

1. 150 73

2. 13 6.5

Source : Primary data.



INTERNATIONAL MARKETING OF PETROLEUM PRODUCTS (INDIA)

D. Vengateswari1 Dr. S. Mohan2

Abstract

Oil & Gas industry (Petroleum Industry) is the most important sector in Indian economy since it caters to a wide rangeof industries including petrochemicals, fertilizers, automobiles etc in the country. It is also one of the highly regulatedsectors in Indian economy. In recent years, Oil & Gas segment emerged as highly considerable sector especially inthe race of being world’s developed economy. Reason is quite obvious as rising consumption of Oil Products &declining production from current reserves. India still remains as one of the least explored countries of world becauseof Technology, Infrastructure, manpower; Govt. regulated policies & other factors. India’s worth as lowest well densityacross the whole world. With rising population, India’s consumption already at the alarming stage with surplusdemands & Industrial utilization. As one of the largest economy in Asia, India’s oil production is too poor comparedto Gulf nations. Indian petroleum business includes the global processes of exploration, extraction, refining, transporting(often by oil tankers and pipelines), and marketing of petroleum products. Petroleum Industry is considered to bethe back bone of an economy because this is the main source of energy till date. Any economy around the worldwould fail to precede a single step in the absence of Petroleum Industry. Petroleum is not a domestic product and anykind of shortage in the same has various ramifications on all possible industries along with the economies all over theworld. This paper deals about the International marketing of Petroleum products (India). The framework showsabout the Petroleum Industry, Facts about the International Fuels Market & Prices, Factors Influencing InternationalPrices, And Imports & Exports of Petroleum Products. Finally the factors determining oil prices are identified.

IntroductionCrude oil is a naturally occurring, flammable liquid foundin rock formations in the Earth. It is a complex mixtureof several hydrocarbons, which are compoundsconsisting of hydrogen and carbon. Crude oil may alsoinclude other organic compounds such as nitrogen,oxygen and sulphur. Crude oil may vary in appearancedepending on its composition, but it is usually black ordark brown in colour.

The various hydrocarbons found in crude oil can beseparated through distillation and can be used to producedifferent types of refined petroleum products. Theseproducts can be used as fuels because they can becombusted in the presence of oxygen. Like natural gasand coal, crude oil is labelled a fossil fuel because it isdeemed to come from the transformation of plant andanimal remains over millions of years.

Petroleum Industry StructureThere are several segments in the crude-oil andpetroleum industry the upstream oil and gas industryoperates oil and gas properties through activities suchas exploration, drilling, production and field processing.The production, distribution, refining, and retailing ofpetroleum taken as a whole represent the single largestindustry in terms of dollar value on earth.

Petroleum Industry in IndiaThe petroleum industry is one of the six core industriesin India. It is of strategic importance and plays a pivotal

1 . Assistant professor, Department of Commerce, Idhaya College for Women, Kumbakonam.2. Principal, SKSS Arts College,Thirupanandhal

role in influencing decisions across other importantspheres of the economy. India is the fourth-largest energyconsumer (2013) of oil & gas in the world, accountingfor 37 per cent of total energy consumption. Oilconsumption is estimated to reach four million barrelsper day (MBPD) by FY16, expanding at a compoundannual growth rate (CAGR) of 3.2 per cent during FY08-16. By 2025, India is expected to overtake Japan tobecome the third-largest consumer of oil. The countryhas 5.7 billion barrels of proven oil reserves. It had 47.8trillion cubic feet (TCF) of gas reserves and produced33.7 billion cubic meters (BCM) of gas in 2013. Indiahas 19 refineries in the public sector and three in theprivate sector. In FY14, public sector refineriesaccounted for 53.4 per cent of total refinery crudethroughput. India has 9,460 km of crude oil pipelinesand 14,083 km of product pipelines.

Facts about The International Fuels Market & PricesThe price of crude oil is established in the internationalmarket based on supply and demand considerations. Inthe 1990s, a relatively stable world oil market, with highproduction and weak oil demand, led to depressed prices.During the last few years, however, there has been asignificant increase in world oil prices. For instance, theprice of West Texas Intermediate crude oil, a marketreference stream used for pricing other crude oil, reacheda low of US$14 per barrel in 1998 but averaged over $66in 2006. Factors often cited as having contributed torecent price increases include renewed geopolitical

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concerns in the Middle East, lower spare oil capacity, production cuts by the Organization of the PetroleumExporting Countries, the devaluation of the United States dollar against other major currencies, increased demandfrom emerging economies and significant growth in speculative trading in the oil futures market.

Annual Average Crude Oil Prices -West Texas Intermediate (at Cushing, Oklahoma)

U.S

.S. p

er b

arre

l

The price of crude oil is typically the largest determinant of the international prices for petroleum products which areprocessed or refined from crude oil.

Factors Influencing International PricesAll of the factors below can have an influence in determining the final price to fuel consumers and the role that eachof these factors plays can change over time or indeed can offset each other. As an illustration of these factors, thechart below highlights specific international events which impacted on the price of crude oil in recent years.

• Prices in regional markets for different products (eg.crude oil, petrol and diesel) can be volatile due tothe impact of factors and events unique to onemarket or all markets globally. changes in regionaland global supply balances in both the short &longer term

• major supply disruptions from natural disasters,war, civil unrest and strikes

• seasonal demand and demand spikes

• shipping availability and freight rates

• market trading activities and strategies

• short term decisions of oil producing countries,National Oil Companies (NOCs) and nations holdingstrategic reserves

• Changes in economic conditions/sentiment in boththe short and longer term.

• Alternative fuel developments

• New oil discoveries

• Investment in new oil production/refining capacity

• Future global demand and supply balances

• Global economic growth and conditions

• Costs of oil production and refining

• Technological progress

• Long term policies of NOCs and oil producingnations

• Population growth

• Regulation and government policy inventorymanagement



Major Events Impacting on Crude Oil PricesTAPIS CRUDE OIL: CENTS PER LITRE

* Recently, an oversupply of crude oil in the global market has led to a significant decline in crude oil prices torebalance the global crude oil market.

Imports & Exports of Petroleum Products:During April-March, 2014-15 imports of petroleum products were 20.423 MMT valued at Rs. 72,778 crore whichshows an increase of 22.16% in quantity terms and 2.45% decrease in value terms against the same period ofprevious year. The quantity of petroleum products imported during 2013-14 was 16.718 MMT valued at Rs. 74,605crore. During April-March, 2014-15 the exports of petroleum products were 63.928 MMT valued at Rs. 2,88,563crors which shows a decrease of 5.80% in quantity terms and 21.65% decrease in value terms against the exportsof 67.864 MMT valued at Rs. 3,68,279 crors for the same period of last year. During April-March, 2014-15 the importof LNG is 15.470 MMT valued at Rs. 63,110 crore which marked an increase of 18.71% in quantity terms and18.39% increase in value terms against imports of 13.032 MMT of LNG, valued at Rs. 53,307 crore was imported forthe same period of previous year. The trends in quantity of petroleum products and LNG imports & exports aredepicted below in Table

Imports & Exports of Petroleum Products

YearImports ofpetroleum

Products (MMT)

% Growth inImports ofPetroleum Products

Exports ofPetroleumProducts

(MMT)

2009-10 14.665 -21.10 51.155 31.35 9.148 13.50

2010-11 17.379 18.51 59.077 15.49 9.931 8.56

2011-12 15.849 -8.80 60.837 2.98 13.214 33.06

2012-13 15.774 -0.48 63.408 4.23 13.136 -0.60

2013-14 16.718 5.99 67.864 7.03 13.032 -0.79

2014-15 20.423 22.16 63.928 -5.80 15.470 18.71

% Growth inExport of

Petroleumproducts

Imports ofLNG (MMT)

% Growth inImports of

LNG

There are periods of time when the price of crude oil is relatively stable and other periods when the price canbecome volatile, changing quickly and by a significant amount. What are the main determinants of the price of

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crude oil, and what impact has it had on the pricesconsumers pay for petroleum products? Let’s start witha few basic facts.• First, crude oil and petroleum products are global

commodities and, as such, their prices aredetermined by supply and demand factors on aworldwide basis. They are shipped from many sourcesto many markets.

• Second, the price of crude oil is the most significantfactor determining the prices of petroleum products.Consequently, the price of gasoline is largelydetermined by the worldwide demand for and supplyof crude oil.

• Third, prices reflect the interactions of many buyersand sellers, each with their own view of the demandfor and supply of crude oil and petroleum products.These interactions occur both in the physical andfutures markets, with the attendant prices respondingquickly to both current and expected future changesin supply and demand conditions.

• Rapid growth in demand in countries like China andIndia more than offset declines elsewhere, and by2006 had all but eliminated spare crude productioncapacity. Continued growth in these regions since2010 has also affected prices more recently.

• Conflict in the Middle East and Africa causedreductions in supply and uncertainty about futureproduction. As one of the largest energy consumingcountries in the world, India is challenged withmeeting its demand for hydrocarbons. India importsover 85% of its crude oil requirement and about 50%of its natural gas. Energy security is high on thecountry’s agenda, and the government is makingefforts to provide policy impetus to the sector toencourage investment in domestic exploration, andto attract overseas investments.

Conclusion :The petroleum industry is one of the six core industriesin India. It is of strategic importance and plays a pivotalrole in influencing decisions across other importantspheres of the economy. As one of the largest energyconsuming countries in the world, India is challengedwith meeting its demand for hydrocarbons. India importsover 85% of its crude oil requirement and about 50% ofits natural gas. In recent years, India’s natural gas markethas grown substantially, due to the government’sinvestment in infrastructure, coupled with recent gasdiscoveries. Natural gas now represents about 10% ofIndia’s energy mix. The country has two operating LNGimport and degasification terminals, the third one in thephase of commissioning and 2-3 more terminals underdevelopment. Indian companies are also expanding theirfootprint into other territories. Indian NOC ONGC’soverseas arm has invested in upstream assets in 8countries. Indian private sector companies have investedin Europe and Africa in the refining and marketing sectors.India is heavily dependent on crude oil imports, withpetroleum crude accounting for about 34 percent of thetotal inward shipments. Over the next 15 years, Indiancrude oil production and exports are expected to continueto increase. Indian's oil industry is expected to continueto be influenced by the interplay of international oil prices,environmental considerations, poor technology, and theunavailability of investment flows.Oil and gas is a special industry, but it cannot isolateitself from broader trends which challenge its marketsand present new opportunities. All who are in the industryor who deal with it need to share clear thinking and saywhat they mean to do in this changed future.



A STUDY ON THE WOMEN CONSUMERS’ ATTITUDE TOWARDS FACECREAM WITH SPECIAL REFERENCE TO THANJAVUR TOWN

P.Amalorpavamary1 Dr.V.Sathursangarvellsamy2

Abstract

It is the trait of human being to become socially recognizable and be watched by others. This, he thinks, may beaccomplished by many ways like amassing wealth and displaying his /her richness by wearing expensive dress andjewellery and sporting material-comforts like houses and cars and making himself attractive by displaying hispersonality or his beauty. Though personality means different things to different people it is generally believed thatbesides education, manners, etiquettes and knowledge, individual’s judge dress, jewellery, spraying of perfumes,application of creams, lotion and moisturizers may help in enhancing his / her personality or beauty.

Key words : Education, manners, etiquettes and knowledge, individual’s judge dress

IntroductionConfucius said, “Everything has beauty but not everyone sees it.” These simple words echo a deeper meaningfor all those who seek to find beauty in the eyes ofanother why should one believe that beauty is aboutlooking like someone else?. For true beauty is not whatother see in you, but what you cherish and nurture inyourself. In the words of Pascal, “we are conscious ofbeauty when there is a harmonious relation betweensomething in our nature and the quality of the objectivewhich delights us”. The concept of body image hasbecome an integral aspect of measuring beauty. Theterm body image can simply be defined as the way oneperceives one’s body and feels about it. Though it refersmuch to the physique, it lays a greater emphasis onappearance.The use of cosmetics either for personalityrelated reasons or for health-related reasons hasbecome widespread and is frequent among all thesections of people. Increase in the number of companiesmanufacturing cosmetics, introduction of different newcosmetics for new end uses, the increase in the demandfor cosmetics, the people’s recent attitude of visitingbeauty parlours may be attested as the proof of thegrowing importance and popularity of cosmetics.Therefore a study on the cosmetics brand preferencesmay help to know the most preferred brand(s) and helpin making suitable decisions on the basis of results ofthe study.

Meaning of Cosmetics :Cosmetics are mixtures of surfactants, oils and otheringredients. They are required to be effective, longlasting, stable and last not least safe to human use.Thus cosmetics are the substances specially preparedto improve, beautify and generally increase theattractiveness of persons. Cosmetic preparation istherefore indented to promote the health and beauty of

1 . Assistant Professor, Department of Commerce, Bon Secours College for Women, Thanjavur.2. Assistant Professor, The H.H.Rajah’s College, (Autonomus),Pudukkottai

individuals. The definition given by Federal Food, Drugand Cosmetic Act of 1938 of the U.S.A., terms‘Cosmetic’ as that substance containing, Articlesintended to be rubbed, poured, sprinkled or sprayed on,or otherwise applied to the human body or any partthereof for cleaning, beautifying, promoting attractivenessor altering the appearance and Articles intended for useas a component of any such articles; except that suchterm shall not include soap.

Origin and History Of Cosmetics:The archaeological evidence indicates the use ofcosmetics by Egyptian, and Greeks around 4000 B.C.From ancient times, women have been borrowing fromnature’s bounty to care for their skin and hair. Egyptianladies who changed their personal beauty by applyingsomewhat crude paints used cosmetics. Such paintingreached its zenith in the time of Cleopatra. But theRomans and ancient Egyptians, not realizing thedangerous consequences of cosmetics containingmercury and white lead used cosmetics. In ancient daysthe tribal people lived by sea would dye their hands andfeet with navy blue colour before going into the sea orriver and those lived in mountain areas would colour theirfinger nails and toe nails with red colour while going tomountains.

Cosmetics in Indian ContextIn India henna (paste made of herbs) is also a used as atype of skin beautification. Its use as a beautificationagent can be traced way back to the 4th or 5th Centuries.Henna is used either as a hair dye or in the art of mehndiin which complex designs are painted on to the handsand feet, especially before a Hindu wedding. Use of hennain family functions and religious ceremonies is also saidto a North African culture. Similarly the use of kohl andkajal has a long history in Hindu culture. The use of

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traditional preparations kohl on children and adults hasbeen considered to have health benefits though in theU.S. it has been linked to lead poisoning and prohibited.

Skin Care PreparationsThe skin care products form a major line of cosmeticsproducts. The popular and widely accepted effectivemeans in skin care is the use of toilet soaps and water.Cleaning creams and lotions are considered more usefulif heavy makeup is to be removed on from the sensitive-to-soap skin. The active constituents of cosmetics areoily which act as solvent agents and are combined in anemulsion with water.

CreamsA cream is a topical preparation usually for theapplication on to the skin. Creams may be consideredpharmaceutical products as even cosmetics are basedon techniques developed by pharmacy and un-medicatedcreams are highly used in a variety of skin conditioningprocesses.

Uses of CreamsCreams act as a substance to protect the skin from thedamages caused by physical and chemical elementssuch as sun stroke or cool climates and allergy due towater, food etc.They help to retain the moisture conditions of humanbody. They are used as substances in the medicines forlocal anaesthesia, anti-inflammatory, corticosteroids,hormones balancing, antibiotics, anti- fungal orcounterirritants.

Types of CreamsThe commonly used types of creams are given below.a) Cold cream : Cold cream is a type of creams used

in winter seasons to protect the skin from coldweather. It is greasy and basically belongs tocleansing and lubricating cosmetics.

b) Cleansing Creams : Cleansing creams may be asimple form of cold cream or even a solidified mineraloil that melts almost at touch. As the name impliestheir purpose is to remove accumulated grime andmake – up from skin. They do this by penetrating thefine crevices of the skin and gently dissolving foreignparticles. Cleansing lotions are usually emulsionsmade of lighter oil held in suspension with varyingamounts of water.

c) Lubricating Creams : Night creams or massagecreams are a type of lubricating creams with theaddition of lanolin (wool fat) and its derivations.Sometimes small quantities of vitamins andhormones are added to these lubricating creams torejuvenating the skin.

d) Vanishing or Greaseless Grams : Greaselesscreams are used primarily as a protective film on theskin and are so called because they seem todisappear when rubbed onto skin. When this creamsis applied, the water evaporates and a smooth, non-greasy, almost invisible film of stearic and remains,making the skin appear smoother.

e) Foundation Cream : Foundation creams are alsocalled base, make-up base or a type of vanishingcream and are used primarily to create a smoothfoundation for make-up. They protect skin and concealimperfections, so that make –up becomes easier toapply and lasts longer.

ObjectivesTo Analyze the Reason for using Face Cream in thestudy area.To Study the Respondents’ period of using face cream.To Find out the Face Cream Brands used by Respondents.

MethodologySampling Design : The data required for the studyhave been collected from 100 women sample respondentsresiding in KalayarkovilTown of Sivaganga District, thestudy area. The data have been collected with the helpof supplying respondents with questionnaires. For thepurpose of study theKalayarkovilTown is divided intothree parts on the basis of the Street. The number ofsample respondents from each Street is given in thefollowing table.

Tools for AnalysisThe primary data have been analyzed by percentagemethod.Buying Behaviour and Brand choice of RespondentsBuying is described as the decision on what to buy,when, where, how much and how to buy and on whatterms and conditions. The decision to buy a productinvolves the consideration of a series of matters,particularly more does in the present day buyers’ marketstate. Generally buying decision are not spontaneously

Table - 1 : Sample Size of The Respondents

1. Muthamil Street 62 41.3

2. Periyar Street 41 27.3

3. Indra Street 47 31.4

Total 150 100

Source : Primary data – survey

Sl.no Name of the Block

NumberRespondents

Percentage to Total



made just by intuition but various other factors such as products’ utility and price, sales promotional strategies,recommendations of friends/relatives, attractive packing, receiving expected results also do play a major in makingbuying decisions.

Reasons for Using Face creamEvery product is purchased to satisfy some type of needs/wants. The use of face cream also gives certain benefits.It may be used for health related reasons or for making himself/herself attractive etc. The sample respondents wereasked to select the reasons given the reasons for using face cream and the results are presented in the followingtable 1.1.

Reasons for Using Number of Respondents Per cent

Climate 55 36.7

Health 61 40.7

Good looking 32 21.3

Status 2 1.3

Total 150 100.0

Source : Primary Data

Table - 1.1 : Reasons For Using Face Cream

Inference :From the Table 1.1 it may be observed that among the sample respondents a majority, say 40.7 per cent use facecream for the health related reasons. This reason was followed by ‘climate’ for using it by 36.7 per cent respondentsand good looking by 21.3 per cent respondents. The ‘status’ as the reason for using face cream cannot be attributedto any respondent but for two.

Period of Using Face creamThe sample respondents were asked to answer how long they are using face cream and their period of using is givenin Table 1.2.

Table - 1.2 : Respondents’ Period of Using Face Cream

Inference:The above table1.2 shows that of the respondents’ period of using the largest number of respondents are using facecream between 1 and 2 years while 27(18 per cent) respondents using it more than 2 years is the least number.

Face Cream Using Pattern of RespondentsFor the current study respondents using face cream of the select four brands were taken as sample respondents.The number of respondents using themis highlighted in the following table and the accompanying chart.

Period of Using Number of Respondents Per cent

Less than 6 months 33 22.0

6-12 months 29 19.3

1-2yrs 61 40.7

Above 2 yrs 27 18.0

Total 150 100.0


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Diagram Showing the Number of Respondents Using SelectFace Cream Brands

Inference :Number of respondents using different brands of face cream shows that among the respondents the most popularbrand is Fair&Lovely. This brand is used by 47(31.3 per cent) respondents.The next popular brand is Fairever(preferredby 38 or 25.3 per cent) followed by Vicco(by36 or 24 per cent) and Garnier(by 29 or 19.4 per cent) respectively.

ConclusionWith the Liberalization, Globalization, and Privatization of Indian economy many new companies have entered Indiain the manufacture of cosmetic items including face cream. The Indian companies already in the production havealso begun to introduce new products to attract new customers or to retain the existing customers. Though contributionof this sector to the Indian economy seems to be minimal the increase in the sales volume and people’s tendencyto use face cream necessitates that this area can no longer be a neglected lot.

Reference1. New Indian Express, “women’s life”, Nov 27, 2007, P.4.2. http://en.wikipedia .org/wikia/3. Britannica Encyclopedia, op. cit, p-566-567.4. Agarwal, R.C., “Marketing Management”, Lakshmi Narian Agarwal, Agra 3, 1994.5. The Hindu, “Opportunities”, Aug 1, 2007.6. The Hindu Business Line, “Brand Line”, Jan 24, 2008.

Table - 1.3 : Face Cream Used By Respondents

Brands Used No of Respondents Per cent

Fairever 38 25.3

Fair&Lovely 47 31.3

Vicco 36 24.0

Garnier 29 19.3

Total 150 100.0




A STUDY ON IMPACT OF ADVERTISEMENT IN THANJAVUR

K. Kalaiselvi 1

Abstract

Competition rules the world not only in business but also in other fields. To face this competition, corporate followdifferent strategies to distinguish their products from that of their competitors. Advertisement is the one of the tool forattracting the consumers. Hence, there is a need to analyze the importance of the advertisement that highly influenceand attract the consumers. The various demographic factors like age, sex, occupation, income and educationalqualification of the consumer has also an impact in viewing the advertisement for a products and the resultant level ofeffectiveness of the same on these viewers. The advertisers should also know about the benefits and drawbacks ofthe advertisements. In the present marketing scenario, maintaining the existing customers and acquiring newcustomers are difficult task to be dealt with by the manufacturers or marketers. To achieve this, many companiesfollow different strategies and one among them is using the advertisement. It helps the brand to reach the consumersquickly. Aged people are believed to be taking vital decisions. Children are attracted by television advertisement andColorful Banners. Teen agers like latest and new products. Hence the Advertiser must consider these factors thoroughlyand match the techniques to induce the consumer and he may present the content of the advertisement in a fair,intelligent and responsible manner. This study concentrates on the effectiveness of advertisements.

Introduction

Advertisement is the process of spreading productinformation among the potential buyers through a publicmedium in order to maximize sales. In Latin, Ad verteremeans “to turn towards”. It draws good attention towardsthe product and obtains high recognition and faster brandawareness among the public. It appears on Televisionas well as Radio, Newspaper, Magazines and asbanners in streets and cities. It is a form of marketingcommunication used to promote or sell something,usually a business product or service.

Before making a buying decision people do not normallyview advertisements for knowing about a product. Hence,advertisements can only be cleverly thrust upon theviewer into a media where the attention of the viewer isbeing focused upon for obtaining something else. Thevarious demographic factors like age, sex, occupation,income and educational qualification of the consumerhas also an impact in viewing the advertisement for theproducts and the resultant level of effectiveness of thesame on these viewers. This report studies about theimpact of advertisement.

Need For the StudyCompetition rules the world not only in business butalso in other fields. To face this competition, corporatefollow different strategies to distinguish their productsfrom that of their competitors. Advertisement is the oneof the tool for attracting the consumers. Hence, there isa need to analyze the importance of the advertisementthat highly influence and attract the consumers.

1 . Assistant Professor, Department of Commerce, Bon Secours College for Women, Thanjavur.

Advertisers choose their media for advertising fromamong the different media like television, newspaper,magazine and journal, radio, outdoor advertisements,internet advertising, depending on their time and costfactors. Different classes of people of different age groupsand of different occupational and educational status viewadvertisements in different media as per their ownconvenience and preference. Before making a buyingdecision people do not normally view advertisements forknowing about a product. Hence, advertisements canonly be cleverly thrust upon the viewer into a media wherethe attention of the viewer is being focused upon forobtaining something else.

The various demographic factors like age, sex,occupation, income and educational qualification of theconsumer has also an impact in viewing theadvertisement for a products and the resultant level ofeffectiveness of the same on these viewers. Theadvertisers should also know about the benefits anddrawbacks of the advertisements among the consumersin order to take the right decision. This calls for an in-depth study of the type of media which is effective foradvertisements among the various segments/ groups ofpeople and this study aims at discovering it by takingup a sample of the viewers in Thanjavur.

Objectives• To study the factors influencing the consumers.• To find out the level of consumer satisfaction on the

particular product.• To understand the impact on sales and profit volume.

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Research MethodSampling DesignTo collect the data from all categories of the people inand around Thanjavur district, stratified random samplingtechnique was adopted. The sample size for the studyis 300 respondents. Convenience sampling techniquewas adopted for the selection of sample respondents.

Hypotheses1. There is no significant influence of the selected

independent variables on the impact of advertisement.2. There is no significant influence of the independent

variables on the purchase attitude of consumers.

Data AnalysisThe study used both primary and secondary data.

Primary Data : The present study is an empirical studybased on survey method. First the data were collectedfrom the field through interview schedule and observation.Secondary Data : The secondary data were collectedfrom standard text books on related topics, leadingjournals, magazines, periodicals, books, articles, reports,thesis and websites.

Table - 1 : Classification of Respondents

Age Group Male % Female %

Senior 12 16

Middle age 18 21

Teen age 6 6

Children 10 11

Total % 46 54

Questionnaire :The key aspect of the present study was identifiedthrough preliminary interviews with the selected samplegroup. The questionnaire was circulated among them.The questionnaire was redrafted in the light of theircomments. Family type, marital status, annual incomesare highly influence the impact of advertisement.

Table - 2 : Share of ToolsTools Viewers %

Television 30

Internet 22

News Paper 21

Magazines 11

Banners 9

Radio 4

Announcement 3

Nowadays, People spend most of their time in watchingTV and searching Net. Hence the advertisers choosetheir media for advertising as per the current trend. Tocompare all the other segments Television is the highestpriority among the respondent.

Table - 3 : List of Top Ten Advertising Brands

Brand Category

Horlicks Malt Based Food 1

Fair & Lovely Max Fairness 2

Colgate Dental Cream 3

Surf Excel Washing Powder 4

Lux Fresh Splash Soap 5

Ponds Dream Flour Talk 6

Sun feast yepee Noodles 7

Lifebuoy Hand Wash 8

Vim vessel cleaning Liquid 9

Santoor Sandal soap 10

Among all the other brands Horlicks Malt based food isthe top most advertised product in the media ofadvertisement. Second and third maximum advertisedcategories are Fair & Lovely Max Fairness and ColgateDental Cream.

SuggestionsDiscrimination of age, gender, education, Occupation,family surroundings are important factors for sale of aproduct. Aged people are believed to be taking vitaldecisions. Children are attracted by televisionadvertisement and Colorful Banners. Teen agers likelatest and new products. Hence the Advertiser mustconsider these factors thoroughly and match thetechniques to induce the consumer and he may presentthe content of the advertisement in a fair, intelligent andresponsible manner. The advertisers may ensure thatadvertisements are not offensive to generally acceptedstandards of public decency. This will help the advertiserto gain an upper hand against their rivals.

ConclusionIn the present marketing scenario, maintaining theexisting customers and acquiring new customers aredifficult task to be dealt with by the manufacturers ormarketers. To achieve this, many companies followdifferent strategies and one among them is using theadvertisement. It helps the brand to reach the consumersquickly. This study concentrates on the effectiveness ofadvertisements meant for durable products.



This study is based on the various demographic andother related variables reveals such as age, gender,educational qualification, family type, impact of theconsumers. Hence, in order to register the brand nameand make the buyer to recollect and to act mainlydepends on the theme or ideas or attractive strategy. Itis always appreciable to invest in good ideas, which willsure ensure good returns.

REFERENCE1. Marketing – Philip Kotler2. Advertising – Principles and Practices - William Wells3. Research Methodology - R. Panneerselvam4. Journal of Advertising Research5. Dailies – Dhina Thanthi, Dina Malar

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A STUDY ON JOB SATISFACTION AMONG THEEMPLOYEES OF CANARA BANK

V. Mahalakshmi1 Dr. N. Arumugam2

Abstract

Human resource management is the management of an organization's workforce or human resources. It is responsiblefor attraction, selection, training, assessment and rewarding of employees, while also overseeing organisationalleadership and culture, and ensuring compliance with employment and labour laws. Job satisfaction is a veryimportant attribute and is frequently measured by organizations. The most common technique for measurement isthe use of rating scales where employees report their thoughts and reactions to their jobs. Questions can relate torates of pay, work responsibilities, variety of tasks, promotional opportunities, the work itself and co-workers

1 . Research Scholar, PG & Research Department of commerce, Government Arts College(Autonomous),Kumbakonam

2. Assistant Professor & Research Advisor, PG & Research Department of commerce, Government ArtsCollege(Autonomous), Kumbakonam.

IntroductionJob satisfaction can simply be defined as the feelings ofpeople have about their job. It has been specificallydefined as a pleasurable or unpleasurable emotionalstate resulting from the appraisal of one’s job, an affectivereaction to one’s job and an attitude towards one’s job.

"Job satisfaction is defined as "the extent to which peoplelike (satisfaction) or dislike (dissatisfaction) their jobs".This definition suggests job satisfaction is a general orglobal affective reaction that individuals hold about theirjob. Traditional job satisfaction facets include: co-workers, pay, job conditions, supervision, nature of thework and benefits."

Job satisfaction describes how happy an individual iswith his or her job. The happier people are within theirjob, the more satisfied they are said to be. Logic woulddictate that the most satisfied workers should be thebest performers and vice versa. A primary influence onjob satisfaction is the application of Job design, whichaims to enhance job satisfaction and performance usingmethods such as job rotation, job enlargement, jobenrichment and job re-engineering. Other influences onsatisfaction include management styles and culture,employee involvement, empowerment, and autonomouswork position.

Kinds of Job Satisfaction

• Intrinsic job satisfaction is when workers consideronly the kind of work they do, the tasks that makeup the job.

• Extrinsic job satisfaction is when workers considerthe conditions of work, such as their pay, co-workers,and supervisor.

Building Job SatisfactionThe following seven 'ingredients' are need for a satisfyingjob. These ingredients are:

Self-awareness.Challenge.Variety.Positive attitude.Knowing your options.Balanced lifestyle.A sense of purpose.

Profile of Canara BankCanara Bank was founded by Shri. Ammembal SubbaRao Pai, a great visionary and Philanthropist, in July1906, at Mangalore, a small port town in Karnataka.The Government of India nationalized Canara Bank alongwith 13 other major commercial banks of India on 19thJuly 1969. In 1976, Canara Bank inaugurated its 1,000thbranch.

In 1996, Canara Bank became the first Indian Bank toget ISO certification for “Total Branch Banking” for itsSeshadripuram branch in Bangalore. In June 2006, theBank completed a century of operation in Indian bankingindustry. The eventful journey of the Bank has beencharacterized by several memorable milestones.

Today, Canara Bank occupies a premier position in thecommunity of Indian banks. With an unbroken record ofprofits since its inception, Canara Bank has several firstto its credit. These include

Launching of Inter-city ATM NetworkObtaining ISO Certification for a Branch



Articulation of ‘Good Banking’ – Bank’s Citizen CharterCommissioning of Exclusive Mahila Banking BranchLaunching of exclusive subsidiary for IT ConsultancyIssuing credit card for farmersProviding Agricultural Consultancy Services.

As on December 2014, the Bank has further expanded its domestic presence, with 5,641 branches spread acrossall geographical segments. Keeping customer convenience at forefront, the Bank provides a wide array of alternativedelivery channels that include 7,599 ATMs, covering 3,839 centres.

Objectives of the StudyThis study has been made with the following objectives:

To ascertain the level of satisfaction of the bank employees regarding their job.To investigate the relationship between personal factors and level of satisfaction.

Methodology :Descriptive research design has been used for this study. Both primary and secondary data have been collected.Primary data has been collected by using structured questionnaire which was administered by personal interview.* Sample size for the study was 100. The population for the study has been taken from the branches of Canara

Bank in Kumbakonam taluk.* Secondary data has been collected from Books, Journals, Reports and Websites.

Table - 1 : Sample Description

It is found from the above table majority (46%) of the respondents are in the age group of 31 – 50 years. Most ofthe respondents (62%) are Male. More than three – fourth (87%) are married. 52 % of them are Graduates and

Demographic variables Categories Percentage

Age Below 30 21

31 - 50 46

Above 50 33

Gender Male 62

Female 38

Marital Status Married 87

Unmarried 13

Qualification H.Sc 11

UG 52

PG 37

Experience Less than 10 years 21

10 – 20 years 27

Above 20 years 52

Annual Income Less than 2 lakhs 16

2 – 3 lakhs 35

3 – 4 lakhs 38

Above 4 lakhs 11

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The above table shows that the Calculated values areless than the table value at 5% level of significance. Sothe Null Hypotheses between Age, Gender, Maritalstatus, Experience, Income, Family size and level ofsatisfaction are accepted. Calculated value is greater

S.No Factors Chi-Square Value

1 Age 2.52 (9.49)

2 Gender 4.01 (5.99)

3 Marital Status 3.61 (5.99)

4 Qualification 3.82 (5.99)

5 Experience 3.35 (9.49)

6 Income 5.97 (12.6)

7 Family size 16.97 (9.49)

(5% level of significance)

37% of them are Post graduates. Majority of respondents(52%) are having experience of more than 20 years. Mostof the respondents Income level is 2 – 4 lakhs (73%).

CHI-SQUARE TEST : Chi-Square test is applied todetermine the relationship between Age, Gender, MaritalStatus, Qualification, Experience, Income level, Familysize and Level of satisfaction at 5% level of significance.

HYPOTHESESThe following Null hypotheses are proposed

Hypothesis 1 – Ho - There is no significantrelationship between Age and Levelof Job Satisfaction.

Hypothesis 2 – Ho - There is no significantrelationship between Gender andLevel of Job Satisfaction.

Hypothesis 3 – Ho - There is no significantrelationship between Marital Statusand Level of Job Satisfaction.

Hypothesis 4 – Ho - There is no significantrelationship between Qualificationand Level of Job Satisfaction.

Hypothesis 5 – Ho - There is no significantrelationship between Experience andLevel of Job Satisfaction.

Hypothesis 6 – Ho - There is no significantrelationship between Income andLevel of Job Satisfaction.

Hypothesis 7 – Ho - There is no significantrelationship between Family Sizeand Level of Job Satisfaction.

Table - 2 : Calculation of Chi-Square Value

than the table value for the hypothesis of Family size andlevel of satisfaction. Hence the Null Hypothesis is rejected.

Findings of the StudyThe study has brought to light the following facts :

Majority of the respondents (59%) are satisfied withtheir working environment.78% of the respondents are satisfied their relationshipwith Colleagues.Highly satisfied employees are more among thegraduates than post graduates.From the Chi-Square test, there is no significantrelationship between Age, Gender, Marital Status,Qualification, Experience, Income and Level of JobSatisfaction.There is Significant relationship between Family sizeand level of Job satisfaction. The respondents belongsto family size of 3-5 have more Job satisfactioncompared to family size of above 5 members.

Suggestions & ConclusionHuman beings differ from one another in their basicmental abilities, personality, motor attributes, interests,skills, intelligence, attitudes, aspirations, energy,education, qualifications, training, experience andbehavior. Hence they are complex in their behavior. Fromhumanitarian point of view, they expect that portion oftheir lives to be more or less pleasant, agreeable,satisfying and fulfilling. The study revealed that theemployees of Canara Bank are more satisfied with theirwelfare measures, provision of infrastructure andpromotional opportunities. Canara Bank providesadequate training to their employees to face thechallenges of work environment. The main problem ofCanara Bank deals with shortage of manpower. Due toshortage of manpower, employees feels that more workload in their job. Hence, the Management of Canara Bankshould take necessary steps to appoint adequatepersonnel and reduce the work load of employees tomaintain their job satisfaction at maximum.

ReferencesPrasad.L.M, “Organisational Behaviour”, SultanChand & Sons, New Delhi.Pillai. R.S.N., & Bagavathi.V, “Statistics”, SultanChand & Sons, New Delhi.Subba Rao. R, “Human Resource Management”,Himalaya Publishing House, Mumbai.Khanka. S.S, “Organisational Behaviour”, S.Chand& Company Ltd., New Delhi.Kapur. S.K., Punia, B.K., “Organisational Behaviourand Management”, S.K. Publishers, New Delhi.Aswathappa .K., “Organisational Behaviour”,Himalaya Publishing House, New Delhi.



A STUDY ON ORGANISATIONAL REENGINEERING A NEW CULTUREIMPLEMENTATION IN WORKING ENVIRONMENT

K.Saranya1

1 . Research Scholar, Department of Commerce, Bon Secours College for Women, Thanjavur.

Abstract

Increased competition and globalization compels most organizations to become innovative and adopt changeapproaches. Business Process Reengineering is one of the most popular change management approaches that canbring incredible solutions to corporations. BPR has arisen as a solution for companies to improve their performances;elevate their efficiencies and gain a competitive advantage in this everlastingly developing and changing world. Eventhough there have been successful and unsuccessful cases stated in the literature, BPR has been touted as a vitalmanagement tool in order to achieve dramatic improvements and organizational competitiveness, if it is implementedproperly and carefully. In this context; with this study, we analyze Business Process Reengineering as today’s prominentmanagement trend for organizational change, examine an reengineering project that has been undertaken in amultinational electronics and electrical equipment company, make suggestions for the areas that can be improved,and finally present survey results of employees` point of view regarding this project in their company.

Keywords : Business Process Reengineering (BPR), Organizational change, Human side of BPR, Employeesreaction to change, Total Quality Management (TQM)

IntroductionInnovation and change in product and service in industrialsocieties is so fast to take the ability of choice andpurchase of goods and services from clients, in a waythat new being of new money did not last more than afew months. Rapid changing in service and good andglobalization of economy show its effects to all firms ina way that behaviour and culture of all people have beenaffected by it. This organization reengineering of businessprocess is concerned with fundamentally rethinking andredesigning business processes to obtain dramatic andsustaining improvements in quality, cost. Service, lead-times, outcomes, flexibility and innovation and thisorganization ready is to implement innovative culture andincreasing performance with gradual activity without anykind of loss. We are trying to approach human resource,technical infrastructure and financial movement withcarefully increasing their performance.

Statement of The ProblemThe problem of the study is based on the employeesatisfaction and Reengineering the business byimplementing the new culture to the organisation.The fact that BPR involves re-thinking and re-designingof business processes to achieve improvements in criticalmeasures of performance such as time, quality and cost,and focuses at optimising organisational performanceby setting and monitoring public service performancestandards, it met resistance as the employees were usedto routine way of doing things.The employees were expected to implement issues whichwere identified during BPR mapping, record the changes

made, monitor and evaluate the processes, account forany lags and make further suggestions on how toimprove the situation. It took more than three monthsfor the different departments to start implementing theBPR recommendations.The employees felt that they were tasked with morework and their supervisors were not providing them withnecessary support and generally shut out the change.

Objectives of The Study• To organization reengineering a new culture

implementation in working environment.• To determine the extent of business process

reengineering adoption among large manufacturingfirms.

• To identify the benefits of BPR in relation to processtime.

• To identify way to communicate the necessity forchange with employees.

• To identify the impact of evaluation of implementationof a business process on the reengineering changeprocess.

Research DesignResearch design is the basic plan, which guides tocollect relevant information accurately and economicallyfor the objectives set for the project. It is the blue printof the study.

Sources of DataThe data was collected from primary data and secondarydata.

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Universe of The StudyThe universe for the study consisted of the total work force of TNPL, Kagithapuram, karur (DT).The whole populationis 1980 members.

Sampling MethodsThe Researcher has selected simple random sampling under the heading probability sampling method.Scope of The Study

To determine how Business Process Reengineering had performance effect as measured in terms of cost, cycletime, quality.To assess the effect of Business Process Reengineering on customer satisfactionTo assess how Business Process Reengineering can affect employee’s skills and knowledge, behaviour, attitudeand team coordination.To find out how management and employees can benefit from a re-engineering process without affecting theobjectives of the organization.

Review of Literature• The elemental rethinking and radical redesigning of the business processes in order to achieve remarkable

improvements in critical measures of performance like cost, service, quality, and speed. It is the analysis anddesign of work flows and processes within an organization” (Kapoor, 2010).

• Goksoy, Ozsoy, and Vayvay (2012) considers BPR as a strategic tool for organizational change and stated thatfirm needs to bring moderate change every year and undergo a major change almost every fifth year if they wantto survive in todays’ hypercompetitive environment.

Data Analysis And InterpretationDistribution of The Respondents Based On Their Company Needs

S. No Most important No of respondents Percentage

1 Reengineer as quickly as possible to beat the competition 24 32

2 Get employees to vote the decision 36 48

3 Take a time planning it out and make sure it is relay needed 10 13

4 Stick with traditions concepts learned though experience 5 7

Total 75 100

Findings : Majority (48%) of the respondents are needs to get employees to vote the decision

Distribution of The Respondents Based on Their Business Reengineering Process Popular

S. No Popular No of respondents Percentage

1 Competition intensifies by overseas competitors 31 41

2 Customer demand unique products for their needs 35 47

3 Guarantee downsizing, cost reduction and also greaterefficiency and quality 9 12

Total 75 100

Findings : Majority (41%) of the respondents are business reengineering process popular in customer demandunique products for their needs.



Findings : Majority (43%) of the respondents are identifying the core business process in main difficult in reengineeringgeneral.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR ORGANISATION CREATE ACCEPTANCE TO CHANGES

S.No Charge No of respondents Percentage

1 Training programmer 24 32

2 Communication process 24 32

3 Strategic planning 15 20

4 Performance appraisal process 12 16

Total 75 100

Findings : Majority (32%) of the respondents are create acceptance to change in training programmer andcommunication process.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR ROLES OF THE TOP MANAGEMENT

S.No Roles No of respondents Percentage

1 Analysis main problem 39 52

2 Co-ordination of the workers 19 25

3 Collecting all level decision making 11 15

4 Solve the problem 6 8

Total 75 100

Findings : Majority (52%) of the respondents are analysis main problem in role of the top management.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR ALTERNATIVE DEVELOPMENT PROJECT

S. No Objectives No of respondents Percentage

1 Development of training for new employment opportunities 33 44

2 Develop the project manager as expertise 33 44

3 Introducing and growing alternative 9 12

Total 100 100

Findings : Majority (44%) of the respondents are development of new training for new opportunities and develop theproject manager as expertise in alternative project.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR MAIN DIFFICULT INREENGINEERING GENERAL

S. No Main difficult No of respondents Percentage

1 Identifying the core business process 32 43

2 Technology limitation 27 36

3 Redefining the company’s objectives 11 14

4 Convincing workers 5 7

Total 75 100

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DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR IMPACT MEASUREMANTS

S. No Measurement of Uses No of respondents Percentage

1 Training programmers 44 59

2 Social support organization 16 21

3 Environmental degradation 11 15

4 Others 4 5

Total 75 100

Findings : Majority (59%) of the respondents are uses of training programmers.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR EVALUATION OFTHE MARKET COMPTITION POSITION

S.No Market Position No of respondents Percentage

1 Evaluate the market competition 23 35

2 Monitored of the competition 25 33

3 Overview of the competition 21 28

4 Estimate competition 6 8

Total 75 100

Findings: Majority (35%) of the respondents are evaluating the market competition for the competition position.

DISTRIBUTION OF THE RESPONDENTS BASED ON THEIR CUSTOMER ORIENTATION

S.No Customer Orientation No of respondents Percentage

1 Convinced that the product qualities 29 39

2 Solve the marketing issues with the traders 28 37

3 Analysis customers requirements 14 19

4 Regularly monitors needs, evaluates, etc gain the results 4 5

Total 75 100

Findings : Majority (39%) of the respondents are customer orientation based on the convinced that the productqualities.

SuggestionThe BPR is a fundamental, organizational change where a move from function orientation to process-orientation isnecessary. Before BPR can be successfully implemented, there must be a vision of what the organization will beafter the reengineering process. Vision must be primary before any analysis or process redesign can occur. Withempowerment as a goal, BPR is more likely to produce heightened results. Information Technology is often animportant part of BPR, but is not the driver. BPR takes time and hard work for the whole organization. BPR is a longterm process; it is an ongoing process that should be continually appraised and renewed. If not, results from BPRwill only be short-lived.

ConclusionIn this study, today’s one of the most popular change management concepts “Business Process Reengineering”has been examined as a change tool. The BPR applications related with production unit of a company as well asproposes for further improvement for these applications have been presented and finally a survey has been conductedwith the company employees in order to assess their perceptions on reengineering applications which have been



executed in their company. Survey results have exhibitedthat among 75 of employees who responded thequestionnaire; most of them know what actually the term“Reengineering” is and agree with the reengineeringdefinition that is mostly stated in the literature. Contraryto the expected consequences of BPR, employeeempowerment has not increased and processes havenot become simpler from the employees point most ofthem conceive these implementations as successfulsince work efficiency has increased after theseimplementations. Other reasons for success inreengineering implementations which have been putforward by employees are need analysis, innovation,customer orientation, plan, report and control, accuratechange management, top management’s support,information sharing and use of IT, communication withemployees before and during the reengineeringimplementation, involving employees into the changemanagement process and good results that have comeup with reengineering projects. Other success factorswhich have been brought up by employees are increasein work efficiency, experienced and specialized

employees themselves, planning and resources,process analysis, innovative structure which givesimportance to fresh and creative ideas, cost, speedand time factors, use of proper methods and tools,customer orientation, control and continuousimprovement of processes. Among the four successfactors of reengineering which have indicated in thesurvey were the overriding success factor ofreengineering, top management commitment andsupport, IT and customer orientation.

REFERENCE

1. Balle, M. 1995. The Business Process ReengineeringAction Kit. London: Kogan Page.

2. Gore EW. 1999. Organisation culture, TQM, andbusiness process reengineering. Team performancemanagement: an international journal, 5(5):164-170.

3. Garvin, D.A. (1988), Managing Quality, The Strategicand Competitive Edge, The Free Press, New York,NY. Batten, J. (1994), "A total quality culture",Management Review, Vol. 83 No. 5, p. 61.

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A STUDY ON CONSUMER SATISFACTION WITH SPECIAL REFERENCETO SAMSUNG MOBILE IN THANJAVUR TOWN

S.Gayathri1

Abstract

As the human history speeds towards the 21st century with all its awe – spring problems and opportunities, the subjectof marketing is the attracting increasing attention. In the existing age of change “Marketing is the beating heart ofmany operations”. It is being recognized as an all pervasive part of the system of business management and itsmanagerial activities. If marketing is at all important it is because, it is directed towards the satisfaction of consumerneeds and in this content, the consumer is the center of attraction for which marketing is carried out. The essence ofthe modern marketing concept is that all elements of business should be geared towards the satisfaction ofconsumers.Consumer is the central theme of our marketing system. For a product to sell with or without advertisingis must to satisfy some needs of the consumers. This paper highlight the consumer satisfaction with special referenceto Samsung Mobile in Thanjavur town.

Keywords : Consumer Satisfaction, Marketing etc.,

IntroductionThe present Indian market is undergoing a major changea shift where aspiration has become a dominant forcein the market both for consumers as well as marketer.Factor such as price salience and consumersegmentation on the basis of monthly householdincomes which were playing an important role till recentlyhave become diluted. Concerning the consumer marketthe “Quality” have been considered as a technical worldby the consumers. Even a small article they purchasethe quality is the grabbing factor for the use of the productregularly.

At the consumer’s end, increased choice in productsand the exposure are triggering off a quantum jump isaspiration level. Now consumer has become the kingmaker. If he accepts an organization stays with us inthe market, otherwise the organization absconds fromthe scene.

The latter refers to the purchase of goods and servicesfor satisfying a variety of goals making profit (or no profits)reducing costs, meeting employee needs and legalobligations. In other words, the acquired goods andservices are in user for further production of productsand services, or resale or redistribution. Consumerbehavior is defined as the behavior that consumerdisplays in searching for, purchasing, using, evaluatingand disposing of products, services and ideas whichsatisfied his or her needs.

Statement of The ProblemThe study deals with the consumer satisfaction whichvaries from brand to brand on the basis of quality, price,advertisements etc.

1 . Head & Asst. Professor, School of Management Studies, Bon Secours College for Women, Thanjavur.

The whole process of buying takes places in the mindof the buyer. To understand these attitudes of mind.Marketing has drawn concepts and ideas heavily fromother disciplines like sociology, psychology, learningtheories and others. The family members, friends, andrelatives often modify the behavioral responses of anindividual.

The complications undergone to identify consumerreaction are many. So, it is interested know, the degreeto which consumer satisfaction varies with income, age,educational status, nature of the family or other featuresinduced the selection of this study.

Objectives of the StudyTo find out the behavioural pattern of mobile users inThanjavur Town.To find out the present usage of Mobile Phone.To study the extent of brand awareness among thebuyers.To analyze the knowledge of the consumers ondifferent variables like price, quality etc.

Importance of The Study• A knowledge of consumer behavior would render

immense help for planning and implementingmarketing strategies.For ex. Buyers reaction to a firm’s marketing strategyhave great impact on the firm’s success

• Secondly, the proof of establishing consumerorientation in the marketing concept of the firmdepends on how marketing mix adopted satisfied theconsumers.



• Thirdly, by gaining a better understanding of thefactors that affect buyer behavior. Marketers are inbetter position to predict how consumers will respondto marketing strategies.

• The study of consumer behavior helps in developingthe strategies understood.I. Selection and segmentation of target markets.II. Devising appropriate marketing strategies most

relevant to the target market segment.III. Evaluation of marketing programmes, strategies

and tactics.IV. Assessing the trends of change and preparing

marketing plans to suit the future change.• Finally consumer is the principal a priority of

business. The efficiency with which a free marketsystem of enterprise operates, in the last analysis,depends up on the extent of consumer understandingpossessed.

Research DesignThe research has selected simple random samplingunder the heading probability sampling methods.

Sources of dataThe data was collected from primary and secondary data.

Universe of the studyUniverse of sampling design consist of the parts studyingand like universe of sampling size. The universe for thestudy consisted of the total population of Thanjavur Town.The whole population is 20,53,760 people.

Sample sizeThe data has been collected from 200 respondentsbecause of cost & Time constraints the total universewas divided into four parts by considering Thanjavur Townas center point. Each division was given equalimportance in sample selection.

Scope of The StudyConsumer behavior offers an opportunity to influence thatbehavior whether a marketing strategy is designed toconform to the buyer formulator of the strategy wouldbenefit from knowledge of these determinants. This isespecially true when the marketer is dissatisfied withestablished techniques and is seeking to innovations inhis products or promotion instruments. Even, if its currentmarketing practices are proving quite successful, thefirm is confronted by the high probability that the futurewill be different changes in tastes, attitudes and behavourpatterns make particular marketing methods more orless efficient. By understanding the ‘why’ of consumerbehavior the marketer can often detect trends that ineffect allow him to peer into the future.

This fore – knowledge will enable him to tailor futurestrategies and tomorrow’s realities rather than today’s

Limitations of The StudyThe study was restricted to Thanjavur Town only dueto cost and time constraints.The information provided by the respondents arespontaneous and they may not be consistent.The sample size is limited to 80 because the surveyis limited to Thanjavur Town only.

Review of LiteratureGoodman (2011)Cross – national studies embrace a wide array ofconsumer behavior research areas. The main elementcharactering these studies is the large sample sizeneeded to compare the results between differentcountrie, but the areas of research are quite different,going from retailing to on – premise analysis, from tourismto generation studies.

Soshi and Kudpi (2013)A buyer with a need has a choice to either make theproduct or buy the product from someone else whomakes the product for them. If a buyer has a choicefrom among many alternative products from differentsellers. As each product is an idiosyncratic combinationof characteristics, the buyers choice process willdetermine the product with the combination ofcharacteristics that a perceived to provide the best valueto the buyer.

Company ProfileIn 1938 the Samsung’s founder Byung – Chuli Lee setup a trade export company in Korea, Selling fish,vegetables and fruit to chine. Within a decade Samsunghad flour mills and confectionery machines and becamea co – operation in 1951. Humble beginnings.

From 1958 onwards Samsung began to expand into otherindustries such as financial, media, chemical and shipbuilding throughout the 1970’s. in 1969, SamsungElectronics was established producing what Samsungis most famous for Televisions, Mobiles phones(throughout 90’s), Radios, Computer components andother electronics devices.

1897 founder and chairman, Byung – Chuli Lee passedaway and Kun – Lee took over as chairman. In the1990’s Samsung began to expand globally buildingfactories in the US, Britian, Germany, Thailand, Mexico,Spain and China until 1997.

In 1997 nearly all Korean business shrunk in size andSamsung was no exception. They sold business torelieve debt and cut employees down lowering personnel

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by 50,000. But thanks to the electronic industry theymanaged to curb this and continue to grow.

The history of Samsung and moble phone stretches backto over 10 years. In 1993 Samsung developed the‘lightest’ moble phone of its era. The SCH – 800 and itwas available on CDMA networks.

Then they developed smart phones and a phonecombined mp3 played towards the end of the 20thcentury. To this date Samsung are dedicated to the 3Gfactory industry. Making video camero phones at a speedto keep with consumer demand. Samsung had madesteady growth in mobile industry and are currentlysecond but competitor Nokia is ahead with more than100% increase in shares.

Data Analysis and InterpretationDistribution of respondents which occasion

to buy their mobile

Occasion No. of Respondents %

Festival season 22 28

Offer season 40 50

Others 18 22

Total 80 100

Majority (50%) of the respondents buy their mobilephone in offer season.

Distribution of respondents choosing their brandSources No. of Respondents %

Quality 62 77

Price 10 13

Brand image 8 10

Total 80 100

77% of the respondents choose their brand basedon quality.

Distribution of respondents Opinionabout their brand


Excellent 12 15

Satisfaction 46 57

Good 15 19

Fair 07 9

Total 80 100

57% of the respondents are satisfied which the brandthey are using

SuggestionsPrice fixed for the service can be reasonable for thework done with the Samsung.Knowledgeable workers can be appoint to repair theSamsung properly and efficiently.Product features like style, looks and are lying inbetween good and average. So, the companymaintains all the product features to stay a head inthe market for that they have to study the consumerexpectations.

ConclusionA study on consumer behavior helps in planning andexecuting marketing strategies in adopting consumerresponse and in fulfilling responsibilities towards society.All people, whether young or old, like Samsung Mobiles.As regards manufactures should realize that theconsumers are the focus point of any businessenterprises they should be conscious of the fact thatthe consumer is prime determining factor or decisiveforce in the market. So, producer should understandwhat exactly is expected of him by the consumers whoare highly sensitive and reactive.

References1. Anderson, E.W., Fornell, C. and Rust, R.T., 1997,


2. Sunder – A research study, “Indian Journal oftransport managemenet, Volume No. 33 No. 4(October – December 2009) pp278-297

3. Bennett, R. and Rundle-Thiele, S. (2004), "Customersatisfaction should not be the only goal", Journal ofServices Marketing, Vol. 18, No.7,pp.514-23. Kotler,P. (2003), Marketing Management, PearsonEducation, Delhi.

4. Malhotra, N. (2006), Marketing Research: An AppliedOrientation, Pearson Education, New Delhi.

5. Mohan. S “Labour Productivity of Tamil Nadu stateTransport corporation” The IIUP Journal ofinfrastructure, Voluime VIII, Nos. 1& 2, 2010.



IMPACT OF EFFECTIVE ADVERTISEMENT AMONG COSMETICPRODUCTS IN THANJAVUR TOWN

K.Punitha Devi1

Abstract

This concept of study is entitled “Impact of Effective Advertisements Among Cosmetic Products in Thanjavur Town“has been done with the aim to design the new advertisement policies for better marketing strategies for the cosmeticsproducts marketing scenario planning on the basis of viewers from satellite TVs, newspaper readers, women andmedia persons are submitted their perceptions, views collected for the purpose of producing quality advertisementwith better genuine and make impact among the consumers. The major motto of the project is to carry out the betteradvertisement plans, strategy and apply the views from the viewers in the new advertisement making design. Itincludes the design concept creation, strategy play roles, quality, feedback reports and unique advertisement planwhich is different from other strategy techniques followed by competitors.

Key Words: Marketing Strategies, Advertisement Making Design, Advertisement Plans and Strategy Techniques.

IntroductionToday, the high sales of popular consumer goods reflectthe power of the advertising and not the real needs ofthe society in which they are sold. The technology hasswitched our life in many aspects like popular goodsexhibition by terrestrial media. Advertising is a veryconvenient way for both customers and producersbecause it deals a way of purchasing and selling betweenthem. In order to introduce a lunched consumer product,advertisement tempts consumers to purchase it as well.However, in my opinion, the way of advertising mentionedseems to true while not having the real needs

Producers sell the high sales of goods focusing on thetelevision screen, they often select popular and famoussingers or actors as for their advertisements. Generally,people who like them emotionally, buy even thoughunnecessary needs. They are lured using a techniqueof tricked method. As products are highlighted withgorgeous and good quality on the TV screen but realitysometimes may be negative. Although, Not all but manyproducts are consumed everyday life while they areadvertising. But the objective of advertising goods is tomake products popular in thefield.

People have own thought whether they will buy or notdepending on their eyes-views. On the other hand, thereare various aspects among the people. Some peoplebuy impulsively after the advertisements showcase. Theyhardly assess the quality. It prompts among the eliteclasses of households. They need to be judged ofmeasured commodities from their own parts.

Advertising do help a lot in boosting the sales of goods.But what is more important, it is the requirement ofcustomers that play a dominant role in making products


achieve a high sale. Admittedly, excellent advertisementshave a positive influence in increasing the sales volume.This is largely because advertising is a quite effectiveway to illustrate the characteristics and quality of goodsthrough vivid pictures and videos. Meanwhile, these visualeffects always leave a good impression in audience andmake them have derrises to purchase such products.Also, commercials are usually designed to appeal totarget audience who will buy the commodities withpleasure, which can make products have steady buyers.Besides, to some degree, publicizing superb qualityand reliable after -sale service can help the manufacturerimprove the corporate image, which will further facilitatethe sales.

However, despite of these advantages of advertising inimproving products sales, the impact of consumers`requirements is a more significant element that cannotbe neglected.

First of all, for the majority of consumers, what makethem decide to buy a commodity is it has the capacityto meet their demand, not just being attracted by theadvertisements. In addition to this, shoppers have toconsider their own purchasing power when they arebuying goods. So consumers have to buy goods theyare able to afford because the restriction of buying power.At a deeper level, merely shopping without regardingthe requirements of buyers themselves and theusefulness of goods will cause unnecessary waste inmaterials. And it is really possible for such wastefulpurchasing behaviors meet opposition by non-profitorganizations in the society. These objections maypossibly result in the decrease of sales volume, whichcan also explain why the demand of customers is soclosely related to good sales.

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Every time you switch on the TV and you will see some products being pushed on you with some assurance. Thisis advertising. Your mind is being sold to these advertisers. Advertising is the promotion of product or services. Thisgives companies a way to expose their products to people and hence maximize their sales. Without advertisementnot a single farm or company can grow in this world of competition.Advertising is the mostly debated topic now. Like every other thing it has also some positive as well some negativepoints. If it has some positive aspect of social and economical impact on society then it do have some negativeimpact also. Advertising a public welfare program has positive social impact whereas exposing woman in anadvertisement has negative impact on society.Advertising is a mass marketing technique. Assorted techniques are used for advertising which persuades theconsumers that why they need the product which is being advertised. They focus more on the benefits, whichconsumer will get from that product, rather than the product itself. Through advertising, products can be known topublic easily. They can decide which product they need and why. Thus increasing the consumption and as a resultalso increasing the demand of the product. Advertising can also be used to generate awareness among public that which product they use and to whichproduct they can say no. It can also be used to educate people about certain diseases or danger (example: - AIDS,TB, viral diseases, etc.). Even the backward people are now aware of many diseases and their problems. And allthese credits goes to proper advertising. Diseases like Polio could never been controlled if the timings for poliodrops aren’t advertised regularly.

Objectives• The main objective of this study is to carry out the enhanced vision over the advertisements of the cosmetics

products to budget the cost spend every year is really handy for the promotion of the product.• It also helps the marketing and advertisement team to curate the advertisement policies for better marketing

strategies for the cosmetics products marketing scenario planning on the basis of product sales improvementfrom the particular mode of advertisements like satellite TVs, newspaper readers, women and media persons aresubmitted their perceptions, views collected for the purpose of producing quality advertisement with better genuineand make impact among the consumers.

• It includes the design concept creation, strategy play roles, quality, feedback reports and unique advertisementplan which is different from other strategy techniques followed by competitors.

Review of LiteratureAccording to American Marketing Association defines advertising as, “Any paid form of non-personal presentationand promotion of ideas, goods of services by an identified sponsor”.Wheeler Defines, “Advertising is any form of paid non-personal presentation ideas, goods or services for the purposeof inducting people to buy.”William J.Stanton defines, “Advertising consists of all the activities involves in presenting to a group, a non-personal,oral or visual, openly sponsored message regarding disseminated through one or more media and is paid for anidentified sponsor.”

Research DesignResearch design constitutes the blue print for the collection, measurement and analysis of data. It includes surveysand fact-finding enquiries of different kind. The major purpose of descriptive research is description of the state ofaffairs, as it exists at present. The methods of research utilized in descriptive research are survey method of allkinds including comparative and correctional methods. The respondents have been identified using Census method.The respondents are the consumer of cosmetic products in Thanjavur town. 300 respondents were selected for thestudy and the data collected were processed systematically. The Validity of any research is based on the systematiccollection of data and analysis. The study is used both primary and secondary data.

FINDINGS AND INTERPRETATION

DISTRIBUTION OF THE RESPONDENTS BY ADVERTISEMENT PATTERN

Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

20 20 30 15 10

Total

95



Inference:-Majority of the respondents 30% Neither Agree nor Disagree 20% of Strongly Agree with their advertisement 20% ofAgree and 15% to Disagree of this advertisement 10% Strongly Agree of this Cosmetic product Advertisement.

Fig. 1

Inference:-Majority of the respondents 30% Disagree 15% of Strongly Agree with their advertisement 15% of Agree and 15%to Disagree of this advertisement 15% and 25% Neither Agree nor Disagree , Strongly Agree of this Cosmeticproduct Advertisement.

Fig. 2

0

5

10

15

20

25

30

35

strongly agree Agree Neither Agree nor Disagree

Disagree strongly disagree

Series1

Distribution of The Respondents By Core Concept Of Advertisements

Strongly Agree Agree Neither Agree nor Disagree Disagree

15 15 25

Strongly Disagree Total

30 15 100

Distribution Of The Respondents By Factors Induces To Buy The Product

Presentation Concept Extra Vagance Star Acting Mental Explanation total

20 20 10 25 5 80

Inference :-Majority of the respondents chose to Star Acting and Presentation of Vishual 20% and Concept Vishuals 20%Mental explanation 5% people and Extra Vagance 10% Total 80% of their Response of This Cosmetic Advertisements.

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Fig. 3

Findings• Majority of the respondents are neither agree or disagree with the advertisement pattern.• 30% of the respondents are disagree with the core concept of advertisement.• Majority of the respondents are to choose to Star Acting and Presentation of Visual advertisements are effective.

Suggestions• Study consumer expectations and release advertisements needs so as to modify or argument the resources

(raw material, production capacity & facility or distribution network) so that customer can be better served.• Expansion of the range of advertisements and benefit to customers so that what cannot be easily or quickly

changed in say, the basic customer (automobile service station) can at least be argument by truly customerbenefiting peripherals service that make it easier and more beneficial for customer to do business with thecompany.

• Introducing the new models and actress for cosmetic products stipulation of tie-in arrangement in manufacturerof other product and service so as to prove company’s customer with complete system of benefits, one of whichis derived by company’s product.

ConclusionIn this study, the impact of effective advertisement of cosmetic products in Thanjavur is so good. TV advertisementsare the major source for awareness of cosmetic products in Thanjavur town. The consumers are highly impressivewith the advertisements which are given lot of information about the cosmetic products.

REFERENCES• Marketing Management by Dr.Jayakumar.• Research Methodology by C.R.Kothari.• http://www.publishyourarticles.net/knowledge-hub/business-studies/advertising



IMPACT OF INTERNET ADVERTISING WITH SPECIALREFERENCE TO THANJAVUR TOWN

B.Abirami1

Abstract

In this study, it is discussed about the impact of internet advertising with special reference to Thanjavur town. Internetadvertising is a marketing strategy that involves the use of the Internet as a medium to obtain website traffic and targetand deliver marketing messages to the right customers. Online advertising is geared toward defining markets throughunique and useful applications. Internet advertising is also known as Online advertising. Advertising seeks todisseminate information in order to affect a buyer-seller transaction. But Internet advertising differs from other mediumsby enabling consumers to directly interest with the advertisement. A consumer can click with his or her mouse on thead for more information, or take the next step and purchase the product in the same online session. Online advertising,also called online marketing or Internet advertising, is a form of marketing and advertising which uses the Internet todeliver promotional marketing messages to consumers.

Keywords : Internet Advertising, Marketing messages, buyer-seller transaction.

IntroductionInternet advertising is a marketing strategy that involvesthe use of the Internet as a medium to obtain websitetraffic and target and deliver marketing messages to theright customers. Online advertising is geared towarddefining markets through unique and useful applications.

Since the early 1990s there has been an exponentialincrease in the growth of internet advertising, which hasevolved into a standard for small and large organizations.

Internet advertising is also known as Online advertising.

Advertising seeks to disseminate information in order toaffect a buyer-seller transaction. But Internet advertisingdiffers from other mediums by enabling consumers todirectly interest with the advertisement. A consumer canclick with his or her mouse on the ad for moreinformation, or take the next step and purchase theproduct in the same online session.

Online advertising, also called online marketing or Internetadvertising, is a form of marketing and advertising whichuses the Internet to deliver promotional marketingmessages to consumers.

The Internet has given consumers more control inaccessing information on products and services. Thereare several factors that contribute to consumers pull foronline content—consumers are the one who decidewhen, where, what, and how much commercial contentthey wish to view. The Internet enables consumers toaccess an unlimited range of products and services fromcompanies around the world, and it has reduced the timeand effort they spend on shopping .

1 . Research Scholar, Department of Management, Khadir Mohideen College, Adirampattinam.

Consumers play a much more active role in searchingfor information online with some goal in mind, and thatgoal can influence individual behaviors and responsesto online information and advertisements . With the rapidadvancement in the computer industry, many companieshave made the Internet as part of their advertising mediamix to take advantage of the online technologies.

The Internet has become a popular advertising platformbecause marketers found that the Internet possessgreater flexibility and control over the advertisingmaterials. Since the Internet can be used as an efficientmarketing communication tool, both scholars andpractitioners are interested in understanding how to takefull advantage and maximizing the value of thiscommunication medium.

Internet Advertising is advertising which is done on theinternet and also a source of revenue for an increasingnumber of websites and companies. Advertising on theInternet is extremely effective for branding awarenessand for buyer-seller transaction.

Internet advertising also gives advertisers the opportunityto precisely target an audience, enabling them to deliveradvertisements that are customized to each user'sparticular interests and tastes.

The Internet advertising has the following advantage.• Targetability-Internet advetisers can focus on users

from specific companies, SIC codes, geographicalregions and nations.

• Tracking-Marketers can track how users interact withtheir brands and earn what is of interest to theircurrent customs and prospective

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Fig. 1

0 50 100

Computer (36%)

Mobile (64%)

Percentage

Dev

ice

Usi

ng fo

r Ac

cess

ing

the

Inte

rnet Percentage %

• Deliverability and flexibility- Internet ad is delivered in relative 24 hours a day, 7 days a week, 31 days a month.• Interactivity- A consumer can interact with product, test the product, and if he or she chooses to, buy the

product.

Objectives• To ascertain the importance of online advertising as a promotional tool.• To assess the effectiveness of online advertising on purchasing behavior.• To ascertain which type of online advertising is preferred by consumers.• To ascertain the role of internet advertising in awareness creation to the peoples.• To find out the factors that influences the satisfaction level on internet advertisement.

Review of LiteratureThe multimedia aspect of the web could make the experience more fun and stimulating, thus holding the attentionof the online consumer longer (Ghose and Duo, 1998).Dreze and Hussherr (1999) found response to the advertising on the internet to be similar to response to advertisingin other media, except that advertising on the internet appeared to be easier to ignore.

Research DesignResearch design constitutes the blue print for the collection, measurement and analysis of data. It includes surveysand fact-finding enquiries of different kind. The major purpose of descriptive research is description of the state ofaffairs, as it exists at present. The methods of research utilized in descriptive research are survey method of allkinds including comparative and correctional methods. The respondents have been identified using Census method.The respondents are the internet usres in Thanjavur town. 100 respondents were selected for the study and the datacollected were processed systematically. The Validity of any research is based on the systematic collection of dataand analysis. The study is used both primary and secondary data.

Findings and InterpretationDistribution of the Respondents by Their Attitude towards Device Using

For Accessing the Internet

1 Computer 36 36

2 Mobile 64 64

Total 100 100

S.No Device Using for Accessingthe Internet

No. of Respondentsn=100

Percentage%

Inference :From the above table the researcher finds that 64% of the respondents are using mobile for accessing the internetand 36% of the respondents are using computer for accessing the internet.



DISTRIBUTION OF THE RESPONDENTS BY THEIR ATTITUDES TOWARDSHOURS SPENDING ON INTERNET

Inference :From the above table shows that 61% of the respondents are spending more than 1 hour on the internet and 23%of the respondents are spending less than 1 hour on the internet and 16% of the respondents are spending 1 houron the internet.

Fig. 2

1 Less than 1 hour 23 23

2 1 hour 16 16

3 More than 1 hour 61 61

Total 100 100

S.No Hours Spending on internet No. of Respondentsn=100

Percentage%

DISTRIBUTION OF THE RESPONDENTS BY THEIR ATTITUDE TOWARDSREASON FOR ACCESS THE INTERNET

S.No Reason for Access the Internet No. of Respondentsn=100

Percentage%

1 Searching Information 41 41

2 Chat with Friends 37 37

3 Online Shopping 22 22

Total 100 100

Inference :From the above table the researcher finds that 41% of the respondents are accessing the internet for searching theinformation and 37% of the respondents are accessing the internet for chat with friends and 22% of the respondentsare accessing the internet for online shopping.

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Fig. 3

FindingsMost of the respondents are Male.Most of the respondents are in the age group of 20-25.47% of the respondents are students.67% of the respondents are using internet in daily basis.Most of the respondents are using internet above 3 years.

SuggestionsMost of the student community use internet more than that of the other occupation as it is a means ofentertainment so the advertiser should target the student community to influence their effectiveness.Know your target audience very well. This is the only way you will be able to communicate with them on apersonal level.Write using the language of your target audience. Include industry Buzz words and jargon when appropriate.

ConclusionIn this study, the impact of internet advertising in Thanjavur town is so good. Most of the youngsters in Thanjavurtown are wants to purchase the products in online through the online advertisements.

Reference :Ghos.,S and Dou.W (1998) “Interactive Function and their impacts on the appeal of Internet Presence Sites”,Journal of advertising Research, Vol(38) March/ April, pp29-43.Dreze- Xavier and Francois-Xavier Hussherr (1999), "Internet Advertising: Is forthcomin



CORPORATE GOVERNANCE AND BUSINESS ETHICS


Abstract

Questions of ethics, or the right way to run a business, are inherent in all aspects of corporate governance and in everyboard decision and action. Ethical choices are relevant within the core business strategies that boards pursue and theway that direct the business as a whole to achieve them. The present paper provides a brief account of Indiancorporate governance, corporate governance Codes, guidelines, Business Ethics, benefits of Business Ethics. Thisarticle also analyses the relationship between corporate governance and business ethics.

Key words: Business ethics, corporate governance.

S.Karthika1

IntroductionCorporate governance lies at the heart of the waybusinesses are run. Often defined as the ‘waybusinesses are directed and controlled’, it concerns thework of the board as the body which bears ultimateresponsibility for the business. Governance relates tohow the board is constituted and how it performs itsrole. It encompasses issues of board composition andstructure, the board’s remit and how it carried out andthe framework of the board’s accountability to itsstakeholders. It also concerns how the board delegatesauthority to manage the business throughout theorganization. The word ‘Corporate Governance’ (CG) hasbecome a buzzword these days due to various corporatefailures world over in recent past. The CorporateGovernance represents the value framework, the ethicalframework and the moral framework under which businessdecisions are taken. In other words, when investmenttakes place across national borders, the investors wantto be sure that not only their capital handled effectivelyand adds to the creation of wealth, but the businessdecisions are also taken in a manner which is not illegalor does not involve moral hazards (S.k verma & Sumangupta, 2004). The Corporate Governance basicallydenoted the rule of law transparency, accountability andprotection of public interest in the management of acompany’s affairs in the prevailing global and competitivemarket milieu. It called for an enlightened investingcommunity and strict regulatory regimes to protect therights of the investors and companies to improveproductivity and profitability without recourse to anymeans which would offend the moral, ethical andregulatory framework of business. 2. Essentials of GoodCorporate Governance

Good Corporate Governance is a formal system ofAccountability and Control of ethical and socially

responsible decisions and use of resources. Thefollowing are the chief characteristics of Good CorporateGovernance: it is1. Participatory2. Consensus Oriented3. Accountable4. Transparent5. Responsive6. Effective and Efficient7. Equitable and Inclusive and

Business EthicsBusiness ethics is a kind of applied ethics. It is theapplication of moral or ethical norms to business. Theterm ethics has its origin from the Greek word “ethos”,which means character or custom- the distinguishingcharacter, sentiment, moral nature, or guiding beliefs ofa person, group, or institution. Ethics is a set of principlesor standards of human conduct that govern the behaviourof individuals or organization. Ethics can be defined asthe discipline dealing with moral duties and obligation,and explanation what is good or not good for others andfor us. Ethics is the study of moral decisions that aremade by us in the course of performance of our duties.Ethics is the study of characteristics of morals and italso deals with the moral choices that are made inrelationship with others.Business ethics comprises the principles and standardsthat guide behaviour in the conduct of business.Businesses must balance their desire to maximise profitsagainst the needs of the stakeholders. Maintaining thisbalance often requires tradeoffs. To address these uniqueaspects of businesses, rules- articulated and implicitare developed to guide the businesses to earn profitswithout harming individuals or society as a whole.

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Advantages of Business EthicsMore and more companies recognize the link betweenbusiness ethics and financial performance. Companiesdisplaying a clear commitment to ethical conductconsistently outperform companies that do not displayethical conduct.

Attracting and Retaining TalentPeople aspire to join organizations that have high ethicalvalues. Companies are able to attract the best talentand an ethical company that is dedicated to talking careof its employees being equally dedicated in taking careof the organization. The ethical climate matters to theemployees. Ethical organizations create an environmentthat is trustworthy, making employees willing to rely,take decisions and act on the decisions and actions ofco-employees.

Investor LoyaltyInvestors are concerned about ethics, socialresponsibility and reputation of the company in whichthey invest. Investors are becoming more and moreaware that an ethical climate provides a foundation forefficiency, productivity and profits.

Customer SatisfactionCustomer satisfaction is a vital factor in successfulbusiness strategy. Repeat purchases or orders andenduring relationship of mutual respect are essential forthe success of the company. The name of a companyshould evoke trust and respect among customers forenduring success. This is achieved by a company thatadopts ethical practices. When a company because ofits beliefs in high ethics is perceived as such, any crisisor mishaps along the way is tolerated by the customersas a minor aberration.

Corporate Governance and Business ethicsThe national codes all emphasize the ethical nature ofgood corporate governance. Special emphasis is placedon the fact that good governance is based on a numberof cardinal ethical values. Topping the list of the valuesthat should be adhered to in good governance are thevalues of Transparency, accountability, responsibility andprobability. These values should permeate all aspectsof governance and be displayed in all actions anddecisions of the board. The various aspects ofgovernance, such as board complication and functioningreporting, disclosure and risk management, are seenas instrumental in realizing these cardinal values of goodgovernance.

Besides these underlying values of CorporateGovernance mention is also made of specific moralobligations that the board of directors and the companyabide by. Prominent among these ethical obligations are

ensuring that the company act on high ethical standardsso that the reputation of the company will be protectedas well as respecting the rights of all shareholders (G.J. Rossouw, 2005) p.101.). A well defined and enforcedcorporate governance provides a Structure that, at leastin theory, works for the benefit of everyone concernedby ensuring that the enterprises adheres to acceptedethical standards and best practices as well as to formallaws. To that end, organizations have been formed atthe regional, national and global level. In recent years,Corporate Governance has received increased attentionbecause of high profile scandals involving abuse ofcorporate power and, in some cases,alleged criminalactivity by corporate officers. An Integral part of aneffective Corporate Governance regime Includesprovisions for civil or criminal prosecution of individualswho conduct unethical or illegal acts in the name oforganizations. In all the national codes of corporategovernance and in India for the need for actively managingthe ethical performance of companies is emphasized.The levels of detail with which these codes deal with theactive management of ethics do, however, differdrastically. All the codes recommend that the board ofdirectors should ensure that a code of ethics is developedand that it is endorsed by the board. Most CorporateGovernance codes also provide some guidance on theprocess of developing a code of ethics by either makingreference to issues or topics that typically should beaddressed in a code or by outlining a process that couldbe followed in the process of code design or review. Fewcodes go further to take the lead in venturing deeperinto what the governing of ethical performances entailsbeyond developing a code of ethics. The mostcomprehensive recommendations on the ethics ofgovernance are to be found in the Narayana MurthyCommittee report on Corporate Governance.

ConclusionEthics is the first line of defences against corruptionwhile law enforcement id remedial and reactive. Goodcorporate governance goes beyond rules and regulationsthat the government can put in place. It is also aboutethics and the values which drive companies in theconduct of their business. It is therefore all about thetrust that is established over time between companiesand their different stakeholders. Good corporategovernance practice cannot guarantee any corporatefailure. But the absence of such governance standardswill definitely lead to questionable practices and corporatefailures which surface suddenly and massively. In makingethics work in an organization it is important that thereis synergy between vision statements, missionstatements, core values, general business principles andcode of conduct confers a variety of benefits. An effectiveethics programme requires continual reinforcement of



strong values. Organizations are challenged with howto make its employees live and imbibe the organizationcodes and values. To ensure the right ethical climate aright combination of spirit and structure is required.

References• ICSI and Taxmann Publication: “Corporate

Governance”.• A.C. Fernando: “Corporate Governance: Principles,

Policies and Practices”.• Inderjit Dube: “Corporate Governance”.

• Sanjiv Aggarwal: “Corporate Governance: Conceptsand Dimensions”.

• P.V. Sharma and S. Rajani: “Corporate Governance:Contemporary Issues and Chaellenges”.

• John Caver: “Board Leadership”.• Christine Mallin: “The role of Institutional Investors

in Corporate Governance”.• K.R. Sampath: “Law of Corporate Governance:

Principles

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STRESS MANAGEMENT OF EMPLOYEES AT BHEL, THIRUCHIRAPALLI

1 . Research Scholar, Department of Commerce, Raja Serfoji Government College (Autonomous), Thanjavur.

Abstract

In order to identify different types of stress from the labour force and also from amongst executives, BHEL was chosento undertake the study on stress management of employees. The primary objectives the study is off to find variouslevels of stress and to study whether they are undergoing positive stress or negative stress. And also find out theopinion of employees on various stress relief techniques to achieve the objection a survey was done for a sample sizeof 170 respondent 30 executives and 140 workers. For this a structured Questionnaire was prepared which consistsof dichotomous multiple choices. The survey was done for the period of 40days. During this period survey wassuccessfully completed, data collection was satisfied, tabulated and inference was drawn out of them. The researchdesign for the study was descriptive and random sampling. The primary data are collected from the respondentsthough Questionnaire method. From this study 63% of the employees aware that they are undergoing stress. 25% ofthe respondent saying that they are not undergoing any stress and 12% expressed that they don’t know whether theyare undergoing stress or not . To find out solution for this problem it was suggested that the management has toarrange much more programme yoga, mediation etc. To overcome from stress. And It has to improve the workingenvironment for the organization.

Key words: BHEL, stress management

R. Prakash1

Introduction Stress in human results from interactionbetween person and their environment that are perceivedas straining exceeding their adaptive capacities andthreading their well-being . The element of perceptionindicates that human stress response reflects differences in personality, as well as difference in physical strengthor general health. Risk factor for stress-related illnessesis mix of personal, interpersonal and social variables.These factors include lack or loss of control over onesphysical environment, and lack or loss of social supportnetworks. People who are dependent on others (e.g.children or the elder) or who are social disadvantage(because of race, gender, educational level, or similarfactors) are at great we risk of developing stress- relatedillness. Other risk factors include feeling of helpless,hopelessness, extreme fear or anger and cynicism ordistrust of others.

CausesThe causes of stress can include any event or occurrencethat a person considers a threat to his or her copingstrategies or resources. Researches generally agree thata certain degree of stress is a normal part of a livingorganism’s response to the inevitable changes in itsphysical or social environment, and that positive as wellas negative events can generate stress. Stress -0relateddisease, however, results from excessive and prolongeddemand on organisms coping resources. It is nowbelieved that 80-90% of all disease is stressrelated.

Recent research indicate that some vulnerability to stressis genetic scientists at the University of Wisconsin andKings collage, London discovered that people whoinherited a short, or stress-sensitive, version of theserotonin transported gene were almost three times aslikely to experience depression following a stressful eventads people with the long version of the gene. Furtherresearch is likely to identify other gene that affectssuspect ability to stress

SymptomsThe symptoms of stress can be either physicalgeical orpsychological stress –related physical illnesses’. Suchas irritable bowel syndrome, heart attack, and chronicheadaches, result from long term over stimulation ofpast of the nervous system that regulates the heartrate, blood pressure, and digestive system. Stressrelated emotional illness results from inadequate orinappropriate responses to major changes in one’s lifesituation, such as marriage, completing ones education,the death of a loved one, divorce, becoming apparent,losing a job, or retirement. Psychiatrist so retime usethe term adjustments disorder to describe this type ofillness. In the workplace stress related illness often takesthe form of burnout loss of interest in or ability to performones job due to long term high stress levels.

DiagnosisWhen the doctor suspect that a patient illness isconnected to stress, he or she will take careful history



that include stressors in the patient’s life( family oremployments problem other illnesses etc) Manyphysicians will evaluate the patient personality as wellas in order to assess his or her coping resources andemotional responses patterns. There are numbers ofpersonality inventories and psychological tests thatdoctors can use to help dingoes the amount of stressthat the patient experiences and the coping stressstrategies that he or she use to deal with them. Stress-related illness can be diagnosed by primary care doctoras well as by those who special in psychiatry. The doctorwill be need to distinguish between adjustment disordersand anxiety or mood disorders and between psychiatricdisorders and physical illness (e.g. thyroid activity) thatthe psychological side effects.

TreatmentRelaxation training yoga, dance therapy help patientrelive physical and mental symptom of stress.Hydrotherapy and massage therapy, and aromatherapyare useful to some anxious patient because they canpromote general relaxation of the nervous system.Essential oil of lavender chamomile, neroil, sweetmarjoram, and ylang-ylang are commonly recommendedby aroma therapists for stress relief. Meditation can alsobe a useful tool for controlling stress. Guided images inwhich an individual is fought to visualize a pleasing andcalming mental image in order to counteract feeling ofstress is also helpful. Many individual may find activitiessuch as exercise, art, music, and writing useful inreducing stress and promoting relaxation. Sometime thebest therapy for alleviating stress is a family member orfriend who will listen. Talking about stressful situationand events can help an individual work through his orher problems and consequently reduce t6he level ofstress related to them. Having a social support networkto turn to in times of trouble in critical to everyone mentaland physical well-being. Pet therapy has also beenrespected to relive stress. It is also said that stress reducesthe body immune response; therefore vitaminssupplementation can be helpful in counteracting thedepletion. Diet is also important coffee and other caffeinatebeverage in high does produce jitteriness, restlessness,anxiety, and insomnia. High protein foods from aniseedsouses elevate brain level of anxiety and stress. Wholegrain promote production of the brain neurone transmitterser Oxonian for greater senesce of well being

Objectives• To find the level of stress of employees of BHEL• To study whether they are undergoing positive stress

or negative stress.• To ascertain the reasons behind that• To find out opinion of employees on various stress

relief techniques

Research MethodologyResearch in common parlance refers to a search fromknowledge. Research is an academic activity and assuch term should be used in technical sense. Accordingto Clifford woody research companies defining andredefining problems, formulating hypothesis’ orsuggested solution, collecting, organizing, and evaluatingdata, making deduction and reaching conclusion; andat last testing the conclusion to determine hypotheses.Descriptive research include surveys and fact findingenquiries of different kind .The major purpose of this typeresources is description of the state of affairs as it existsat present. The main characteristic of this method isthat the researcher had no control over the variable’ hecan only report what has happened or what is takenfrom the executives and workers of the organisation atrandom.

Period of survey; the survey was conducted for the periodof one month sample size. For the present study nearly30 executives and 140 workers were selected by meansof simple random sampling. Deportment details andexperience were take a percent data for 170 sampleselected for the present study, sample produce executiveand worker sample size 170

DATA ANALYSISTABLE NO - 1 : Employees Opinion About

Meaning Of Stress

Physical mental tension 99 58.62%

Heavy work 41 24.1%

All type of Illness 19 11.2%

Adjustment mental 11 6.5%Disorder

Total 170 100

VARIABLE NO. OFRESPONDENTS

% OFRESPONDENTS

TABLE - 2 : Employees Sense After Completion OfWork

Boreness 50 29.4

Headache 16 9.4

Weakness 54 31.8

None of the above 39 22.5

All of the above 11 6.6

Total 170 100


% OFRESPONDENTS

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TABLE NO - 3 : The Cause Of Stress In PersonnalLife

Finance Problem 37 21.28

Health of Family Members 53 31.2

Children Education 24 14.1

Other problem 56 32.9

Total 170 100


% OFRESPONDENTS

TABLE NO - 4 : Cause Of Stress Of Employees AtWorkplaces

Over work load 75 44.1

Pressure of Superior 40 23.5

Others 55 32.4

Total 170 100


% OFRESPONDENTS

TABLE NO - 5 : Effects of Stress

Physical Stress 72 42.4

Psychological Stress 98 57.6

Total 170 100


% OFRESPONDENTS

TABLE NO - 6 : Employees Perform To Reduce ToStress

Meditation 74 43.5

Exercise 21 12.5

Watching Movies 28 16.5

Relaxation 47 27.6

Total 170 100


% OFRESPONDENTS

Finding:1. Table 1 shows that 58.62% the employees are saying

that stress is physical and mental tension.24% aresaying heavy workload, 11.2% are saying a type ofillness and 6.5% are saying as an adjustment disorders.

2. Table 2 shows that 29.4 of the respondent feel borenesafter completion of their work, 9.4 feel headache, 31.8feel fatigue feel weak, 22.5% feel all of the aboveand where 6.6% are not having any of abovesymptoms.

3. Table 3 shows that 21.28% of the respondent feelingfinancial problem is cause of stress in personal life,31.3% feel ill health of family members as cause ofstress. 14.5% feel education of their children givesthen stress, and 32.9% are saying that other problemthe feel stress.

4. Table 4 shows the majority 44.4% of the peoplesaying overload of work is cause of stress at workplace where 23.4% are saying pressure of superior acause and 32.4% are saying other problem as acause.

5. 5 Table 5 shows that 42.4% of the employees feelphysical stress affect more where 54.6, are feelingpsychological stress affect .

6. 6 table 6 shows the most of the respondent 43.5%prefer mediation to reduce their stress, 12.5 preferdoing exercise 16.5% prefer watching movies and27% prefer relaxation to reduce their stress.

Conclusion:Stress has physical and emotional effects on us andcan create positive and negative feeling. There are manypersonal and ergonomic factors. Called as stressor whichcause stress at workplace, including responsibility level.knowledge skill on work hazard working conditions.Recognition by the management, treatment given seniorexplanation of duties and responsibility human level ofworkplace clashes with colleagues or boss, fear aboutpromotional chance, conflict between how and work,more that they can uncomfortable work environment,number of risk situation, work uncertain and importantoutcome role of conflict, unrealistic goal.

This study reveals the majority of employees are satisfiedwith the organisation on majority parameters. Some areasof focuses for the battlement of the stress free workplaceare given under suggestion. Thos suggestion ,we candefinitely see much harmonious organisation.

Reference1. Methodology of research in social science- Dr. O. R.

KRISHNASWAMI2. Stress Management and Immune system

Reconstitution – Antoine . M.H D. And N.KLIMASETAL



STRESS MANAGEMENT PROGRAMMES ON THE PERCEPTION OF THEEMPLOYEES IN BHEL TRICHIRAPALLI.


Abstract

In modern times stress has become a part of life. Stress in work atmosphere has received considerable attention inrecent years. Stress is the way human beings react both physically and mentally to changes, events, and situations intheir lives. People experience stress in different ways and for different reasons. The reaction is based on your perceptionof an event or situation. If you view a situation negatively, you will likely feel distressed—overwhelmed, oppressed, orout of control. Distressis the more familiar form of stress. The other form, eustress, results from a “positive” view of anevent or situation, which is why it is also called “good stress.”Eustress helps you rise to a challenge and can be anantidote to boredom because it engages focused energy. That energy can easily turn to distress, however, if somethingcauses you to view the situation as unmanageable or out of control. Many people regard public speaking or airplaneflights as very stressful—causing physical reactions such as an increased heart rate and a loss of appetite—whileothers look forward to the event. It’s often a question Stress can be seen in three main ways: as a stimulus or cause,as a response of effect, and as an interaction between the demand made on individual or groups and the degrees ofcoping available to them. “How to manage stress” is an excellent study which describes the various methods that canbe adopted to contain and combat stress. Stress is usually regarded as unpleasant, undesirable, unwanted, thoughthis need not always be the case. Keeping this view in mind the present study objectives to analysis the effect of stressmanagement programmes offered BHEL to alleviate stress among the employees.

Key words: Stress, Occupational Health Service, Stress Alleviation, Health ,Stres management Programmes.

R.Shanthi1

IntroductionWorld health organization defines health satiate ofcomplete physical, mental and social well being andnot merely an absence of disease or infirmity. Peopleshould not respect, recognized and motivated but notinjured by work. Work Environment should be safe andhealthy. The human relationship with in any organizationshould be fair and equitable, with minimum of imposeddecisions form may be and realistic group attitudesform below, All these things can contribute to overallmental and physical healthy or ill – health, All the sametime ,every individual has responsibility for his own healthwhich he cannotpass on others, To remain healthy , Hemust follows the basic rules of health which includeeating properly, getting enough sleep and exercise, nosmoking limiting the amount of alcoholic taken andgenerally living away which minimizes stress and strainallows time for relaxation hobbies. Being aware of thisfact BHEL, Tiruchirappalli, spare no effort to strengthenMan and thus raise productivity. Man and his workingenvinrment are constantly monitored by a specializedservice the occupational health services. This was invited1976 on BHEL own initiative and a health promotedservices with special emphases on Man in his workingenvironment. A worker is exposed to generally healthrisks and also to work and ever expanding list ofhazardous occupational agents.

Occupational Health Services Of BHELOccupational health aims at: Promotion and maintenceof the highest degree of physical mental and social wellbeing of workers in all occupational: prevention ofsickness amongst workerscaused by their workingcondition: protection of workers in theiremployment fromrisks resulting from factors adverse to health: The placingand maintenance of the worker in an occupationalenvironment adapted to his physiological andpsychological equipment.

The main area of occupational health services (OHS) ofBHEL in Tiruchirappalli are:1. Ro identify occupational hazards:2. To advise on the control of occupational hazards:3. To recognizes at an early stage occupational or other

diseases and to screen valuable groups;4. To give initial treatment for injuries and illnesses of

sudden onset; to trait illness to prevent people fromgoing off work.

5. To give advice about the placement of people insuitable work on starting work following illnesses

6. To undertake health education

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The various activate of BHEl plant level occupationalhealth services;1. Pre-employeement screening2. Pre placement screening3. Periodic screening vulnerable groups4. Healty screening5. Industrial Hygiene Monitoring of the working environment.6. Psychologial counseling and guidance.7. Rehabitation of the disabled.8. Health education9. Emergency medical care

All the above activates are carried out by various technicalperson who in a co-ordinate manner. This multidisciplinary approach is the basic theme in occupationalhealth services. To highlight the importance of stressmanagement programmes Dr.N.K.chanaraskeran, andothers of stress can be seen in here main ways; as astimulus or causes as a response or effect, and aninteraction between the demand made on individual orgroup and the degree of coping available to them.

Qualification And Measurement Of Satisfaction OfStress Alleviation Measures Adopted ForEmployees In BHELTo measure the satisfaction level of the respondent aboutthe stress management program eoffered by BHEL 20statements were prepared with the help of literature.Resins Likert summated scaling technique was adoptedto measure the respondents attitude towards stressalleviation methods in BHEL .These 20 statements wereframed to facilitate the purpose of the questionnaire andwere administered. In the study the respondents wereasked to indicate their response with every statementchecking one of the following direction indemnifyingdescription .the response to various statement werescored in such a way that a responsive indicate of themost favorable attitude is given the highest score of 5and that with the most unfavorable attitude is given thelowest score of 1. A rating of 5 indicate that the statementis STONGLY AGREE, a rating of 4 indicate that thestatement is AGREE, a rating of 3 indicate that thestatement NO OPNION, a rating of 2 indicates that thestatement is STRONGLY DISAGREE, ANFD A RATING0F 1 INDICATE THAT the statement is disagree, aboutthe stress management programmes in BHEl. Anindividual total score has been obtained from 20statements by adding his scores which had beenreceived from each separate statement.

DISTRIBUTION OF SAMPLE EMOLOYEES BY LEVELOF STRESS ALLE3VATION SATIFACTION IN BHEL;To measures the level of stress alleviation satisfactionin BHEL 475 workers were selected on none-randombasis. An individual’s secure is the mere summation of

the score secured from the 20 statement . To collectthe required information, questionnaire printed in Englishand Tamil were administer .the respondent were groupedinto 3, based on the securevia fair , good, and excellent.Those who scored below 75 were scored between 76-100 their opinion of stress alleviation satisfaction levelin BHEl is good., Those who have scored between 101-125 the respondent were classified as excellent. Theabove scoring procedure was adopted for officers andworkers for measuring the stress alleviation satisfactionlevel. The following table gives the distribution of the totalsample respondents by their level of satisfaction aboutstress alleviation programmes.

Distribution Of Workers By Their Level Of StressAllevation Satisfaction;

The following table clearly gives the distribution of thetotal sample respondents by their level of stressalleviation satisfaction.

Table - 1 : Distribution of Workers By Their levelof stress Alleviation Satisfaction

Fair 98 20.50

Good 145 30.50

Excellent 232 49.00

Total 475 100.00

Stress alleviationsatisfaction

Number ofrespondents

Percentage

Table 1 clearly indicates that out of 475 workers, 20.50%of the respondents stress alleviation satisfaction level inBHEL was fair. The average score of 79.50 of therespondents exceeds the score of 75, the average scoreof 475 sample workers was 97.28

RELATIONSHIP BETWEEN INDEPENDENTVARIABLES AND LEVEL OF STRESS ALLEVATIONSATISFACTION IN BHEL;Significance of the relationship eight independent variablewith the opi ion of officers about stress alleviation methodshas been analysis by applying the statistical techniquessuch as chi-square test “Analysis of variances (F test)and “Z” test. To examine the relationship with the opinionof works about stress alleviation at faction level only sixrespondent variables are considered.

Age And Level Of Stress Alleviation Satisfaction;Age is factor which determines every individual both provehis eligibility to be appointed and to be retired. Thus ageis a main factor for everything in his life. Age is a greatfactor which counted for his services and is likely toinfluence the stress level.The following table gives clear information regarding theage group of sample workers and their level of



Table - 2 : Distributionofworkersonthe Basisoftheirageand Level Ofstress Alleviation Satisfaction:Chi-Square Test

Chi-square value:5.74.

www.scholarsworld.net [email protected] Volume. II, Issue II, April 2014 [167]Table 2 indicates that the percentage of sample workers of category B (51%) whose opinion about stressAlleviation measures in BHEL is excellent is higher than those of the category A (48%) and category C (44%).Average Satisfaction Score Of Workers on The Basis Of Their Age:The average stress alleviation satisfaction score of the sample workers on the basis of their age are given in thefollowing table.

Table - 3 : Average Score of Workers on The Basis of Their Age

Fair Good Excellent

A( 40 years) 40 (18%) 77 (34%) 108 (48%) 225 (100)

B (41-50years) 47 (24%) 49 (25%) 100 (51%) 196 (100)

C (above 50 years) 11 (21%) 19 (35%) 24 (44%) 54 (100)

Total 98 (21%) 145 (30%) 232 (49%) 475 (100)

Age group Stress alleviation satisfaction Total

A 97.25 225

B 97.13 196

C 97.98 54

Total 97.28 475

Age group Average score Sample size

Table 3 clearly indicates that the average score of sample workers of group C (97.98) is higher than group B (97.13)and group A (97.25). It is proposed to test the hypothesis that the average score of the three groups of sampleworkers on the basis of their age is the same. Variance analysis was adopted.

Educational Qualification And Level Of Stress Alleviation Satisfaction:Educational qualification helps a person to be recruited according to his specialized knowledge ability and skills.Thus it is decided to analyze the extent of the educational qualification of the sample workers in relation to theirstress alleviation satisfaction level.Educational qualification of the sample workers is classified into three groups as already scheduled in the previousHRD III chapter. It is proposed to test the hypothesis that the workers opinion/attitude about stress alleviationmanagement programmes under different educational qualification groups does not differ significantly. Chi-squaretest was applied.The following table gives clear information regarding the educational qualification of the sample workers and theirlevel of stress alleviation satisfaction in BHEL.

Table - 4 : Distributions Of Workers On The Basis Of Their Education And Level Of Stress AlleviationSatisfaction: Chi-Square Test

Fair Good Excellent

A 47 (23%) 67 (32%) 95 (45%) 209 (100)

B 40 (19%) 59 (28%) 113 (53%) 212 (100)

C 11 (20%) 19 (35%) 24 (45%) 54 (100)

Total 98 (21%) 145 (30%) 232 (49%) 475 (100)

Educational Qualification Stress alleviation satisfaction Total

Chi-square: 3.29.

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Table 4 indicates that the percentage of sample workers in category B (53%) whose opinion about the stressmanagement in BHEL is excellent is higher than those of category A (45%) and category C (45%). The Chi-squaretest proves that there is no association between the educational qualification of workers and their level of stressalleviation satisfaction in BHEL.

Average Satisfaction Score of Workers On The Basis of Their Educational Qualification:The average stress alleviation satisfaction score of the three groups of workers on the basis of their educationalqualification is given in the following table.

TABLE - 5 : AVERAGE SCORE OF WORKERS ON THE BASIS OF THEIR EDUCATIONAL QUALIFICATION

A 95.56 209

B 98.81 212

C 97.98 54

Total 97.28 475

Educational Qualification Average score Sample size

Table 5 clearly indicates that the average score of category B (98.81) is higher than the average scores of categorya (95.56), and the category C (97.98) in BHEL. It is proposed to test the hypothesis that average score of the threegroups of workers on the basis of their educational qualification is the same. “F” test was adopted.

Table - 6 : Educational Qualification and Workers Stress Alleviation Satisfaction Score: F-Test

Between samples 1139.08 2 569.54

Within samples 182747.55 472 387.18 1.47

Total 183886.63 474

Source of variation Sum of sequences “F” ValueDegrees of freedom Mean square

‘F’ test proves that the average stress alleviation satisfaction score of the three groups of workers is the same.Table 6 clearly indicates that the percentage of sample workers in category a (49%) whose opinion about stressmanagement is excellent is higher than that of category B (48%). Chi-square test proves that there is no associationbetween the gross salary and stress alleviation satisfaction level in BHEL.

Average Satisfaction Score Of Workers On The Basis Of Their Gross Salary:The average stress alleviation satisfaction score of the sample workers is given in the following table.

Table - 7 : Average Score of Workers On The Basis of Their Gross Salary

A 96.98 261

B 97.65 214

Total 97.28 475

Gross salary Average score Sample size

Table 7 clearly indicates that the average stress satisfaction score of the category B (97.65) is higher than theaverage scored of category a (96.98) in BHEL. It is proposed to test the hypothesis that the average score of the twogroups of workers is the same. “Z” test was applied.

Table - 8 : Gross Salary And Stress Alleviation Satisfaction Score Of Workers: ‘Z’-Test

A 96.98 0.67 1.8057 0.3710

B 97.65

Gross salary Average score “Z” ValueDifference Standard error

‘Z’ test reveals that the average score of the two groups of workers on the basis of gross salary is the same.



Family Income and Level Of Stress Alleviation Satisfaction‘Z’ test reveals that the average score of the two groups of workers on the basis of gross salary is the same.Gross Salary and Level of Stress Alleviation Satisfaction:It includes a person’s basic pay plus all other allowances to be included for his salary. Thus gross salary of a personshows to what extent he had earned before the committed deductions. Hence it is decided to analyze the extent ofgross salary of the sample workers in relation to their stress alleviation satisfaction.It is proposed to test the hypothesis that the workers’ opinion/attitude about stress alleviation managementprogrammes under different gross salary groups does not differ significantly. Chi-square test was applied. Thefollowing table gives clear information regarding the gross salary of the sample workers and their level of stressalleviation satisfaction in BHEL.

Table - 9 : Distributions of Workers On The Basis of Their Gross Salary And Level of Stress AlleviationSatisfaction: Chi-Square Test

Fair Good Excellent

A (< Rs.10,000) 54 (21%) 79 (30%) 128 (49%) 261 (100)

B (= Rs.10,000) 44 (21%) 66 (31%) 104 (48%) 214 (100)

Total 98 (21%) 145 (30%) 232 (49%) 475 (100)

Gross Salary (per month) Stress alleviation satisfaction Total

Chi-square value: 0.0183.

Family income is a vital source for the maintenance and growth of the family. Hence, it is decided to analyze theextent of the family income of the sample workers in relation to their stress alleviation satisfaction level.It is proposed to test the hypothesis that the workers opinion/attitude about stress alleviation managementprogrammes under different family income groups does not differ significantly. Chi-square test was applied. Thefollowing table gives clear information regarding the family income of sample workers and their stress alleviationsatisfaction level.

Table - 10 : Distributions of Workers On The Basis Of Their Family Income and Stress AlleviationSatisfaction Level: Chi-Square Test

Fair Good Excellent

A (< Rs.1, 50,000) 82 (20%) 125 (34%) 198(49%) 405 (100)

B (Rs.1,50,000 & above) 16 (23%) 20 (29%) 34(48%) 70 (100)

Total 98 (21%) 145 (30%) 232 (49%) 475 (100)

Family income (per year Rs.) Stress alleviation satisfaction Total

Chi-square: 0.3.

Table - 10 clearly indicates that the percentage of sample workers in category a (49%) whose opinion about stresssatisfaction is excellent is higher than the other category B (48%). The Chi-square test proves that there is noassociation between the family income and the stress alleviation satisfaction level.

Average Satisfaction Score of Workers On The Basis of Their Family IncomeThe average stress alleviation satisfaction score of the sample workers on the basis of their family income is givenin the following table.

Table - 11 : Average Score of Workers On The Basis of Their Family Income

A 97.41 405

B 96.53 70

Total 97.28 475

Family income Average score Sample size

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Table 11 clearly indicates that the average score of category a (97.4) is higher than the average score of category B(96.53) in BHEL. It is proposed to test the hypothesis that the average score of two groups of workers on the basisof their family income is the same. “Z” test was adopted.

Table - 12 : Family Income And Stress Alleviation Satisfaction Score: Z-Test

A 97.41 0.88 2.54682 0.345

B 96.53

Family Income Average score “Z” ValueDifference Standard Error

‘Z’ test proves that the average score of the sample workers of both the groups remains the same.

Length of Service and Level of Stress Alleviation Satisfaction:Here, it is decided to analyze the extent of length of service of the sample workers in relation to their stressalleviation satisfaction level. It is proposed to test the hypothesis that the workers’ opinion/attitude about stressalleviation management programmes under different lengths of service groups does not differ significantly. Chi-square test was adopted. The following table gives clear information regarding the length of service of the sampleworkers and their level of stress alleviation satisfaction.

Table - 13 : Distributions of Workers On The Basis of Their Length of Service and Stress AlleviationSatisfaction Level: Chi-Square Test

Fair Good Excellent

A (<15) 39 (18%) 79 (35%) 103 (47%) 221 (100)

B (15 -25) 41 (27%) 31 (20%) 81 (53%) 153 (100)

C (>25) 18 (18%) 35 (35%) 48 (47%) 101 (100)

Total 98 (21%) 145 (30%) 232 (49%) 475 (100)

Length of service (years) Stress alleviation satisfaction Total

Chi-square: 12.77.

Table 13 clearly indicates that the percentage of sample workers in category B (53%) whose opinion about stressalleviation management programmes is excellent is higher than those of category A (47%) and category C (47%).The calculated value of chi-square (12.77) exceeds the table value of chi-square (9.488) for 4 degrees of freedom at5% level of significance. Hence the hypothesis is not accepted. Therefore it is concluded that there is an associationbetween the length of service and the level of stress alleviation satisfaction in BHEL.

Factor Analysis:Factor analysis is used to resolve a large set of measured variables/statements in terms of relatively new categories,known as factors. This technique allows to group variables/statements into factors and the factors so derived maybe treated as new variables (latent variables) and their value is derived by summing the values of the originalvariables, which have been grouped into the factor. Factor Analysis helps to reduce the complexity of large numberof observed variables into new (latent) variables which summaries the commonalty of all the variables.

In factor analysis literature for a loading of 0.33 to be the minimum absolute value to be interpreted. This criterion isbeing used more or less by way of convention.

Data collected from 325 sample officers were subjected to principal–component factor analysis with Varimax Rotationby using the criterion that factors with eigen value greater than 1.00 were retained. Factor analysis yielded fivefactors accounting for 86.27 % of total variance.

Factor 1 consists of eleven items and explains 46.792 % of the total variance. Among the five factors, factor 1explains the maximum variance is the most important factor which improves the level of stress alleviation satisfactionin BHELTable 2 shows various factors, item loadings, eigen values and % of variance explained by each factor. Factoranalysis yielded five factors accounting for 86.273 % of total variance.



Factor 1 consists of twelve items and explains 46.792% of the total variance. Among the five factors, factor 1explains the maximum variance and is the mostimportant factor which improves the level of stressalleviation satisfaction in BHEL.

Factor 1 consists of eleven items and explains 46.792% of the total variance. Among the five factors, factor 1explains the maximum variance is the most importantfactor which improves the level of stress alleviationsatisfaction in BHEL. It various factors, item loadings,eigen values and % of variance explained by each factor.Factor analysis yielded five factors accounting for 86.273% of total variance.

Factor 1 consists of twelve items and explains 46.792% of the total variance. Among the five factors, factor 1explains the maximum variance and is the mostimportant factor which improves the level of stressalleviation satisfaction in BHEL.

In factor 1, Giving opportunities for career development,is the most important statement. Factor 2, consists offive statements of these, Educating employees tomanage time, is the most important item. Factor 3,consists four statements of these, Providing adequateworking condition, is the most important item.Factor 4,consists of three statements of these, Recognizing andrewarding for work performance, is the most importantitem. Factor 5, the only statement namely creating asmooth and cordial relationship at work place is the mostimportant item.

Suggestions:It is found that a high percentage of officers (24%) feltthat the stress management programmes are notadequate. It is observed that programmes such as Givingopportunities for career development, Educating tomanage time, Providing adequatre working conditions,Recognizing and rewarding for work performance,Creating a smooth and cordial relationship at work placeshould be given more importance to the stress. Henceit is suggested that the management is expected to traceout the and introduce more wellness programmes/Staywellprogrammes to educate the employees aboutthe health risk factors to reduce risks through heal theirlife styles of continuous monitoring and frequentevaluation.

Conclusions:BHEL Tiruchirapalli is the proud winner of successiveproductivity awards and the “Sword of Honour” from theBritish Safety Council. BHEL Tiruchy has won goodwilland sustained support for its employee welfare schemes.BHEL- HRD department has also been awarded thepresidents’ trophy as the best training established inthe country on four occasions. The HRD centre is wellequipped and the facilities are being continuouslyupdated to the latest technology techniques. The HRDpolicies of BHEL are formulated centrally by the corporateoffice at New Delhi, and incorporated in the Company’spersonnel manual, which is updated from time to time.The group activity and participative style of managementhave earned BHEL, Tiruchirapalli State National Awardsfor good industrial relations. It is concluded from thevarious objectives of the study that the Human ResourcesRelations in BHEL is excellent.

REFERENCES1. Benson, H. (1975). The Relaxation Response. New

York: Morrow.2. Brown, G. W., Ehrolchain, N., & Harris, T. (1975).

Social class and psychiatric disturbance amongwomen in urban populations. Sociology, 9, 225-254.

3. Callahan, R. (1985). Five Minute Phobia Cure.Wilmington, DE: Enterprise Publishing, Inc.

4. Cohen, S., &Hoberman, H. N. (1983). Positive eventsand social supports as buffers of life change stress.Journal of Applied Social Psychology, 13, 2, 99-125.

5. Davis, M., Eshelman, E.R. & McKay, M. (1996). TheRelaxation and Stress Reduction Workbook.Oakland, CA: New Harbinger Publications Inc.

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A STUDY ON GAP ANALYSIS IN HOTELS AT THANJAVUR

1 . Research Scholar, Department of Commerce, Bon Secours College for Women, Thanjavur.

Abstract

In hotels, there are more or less gaps of service quality expectations because the management, the front-staff andguests perform different roles respectively and each possesses unequal message. To effectively meet guests' needsand expectations, promises for guests should be made felicitously and guests' expectations of service quality shouldbe kept at a rational level on the basis of comprehending guests' needs and expectations of service quality via marketresearch. Meanwhile, to reduce or even eliminate the gaps of service quality expectations, the message about theirmutual expectations of service quality should be punctually and precisely passed to the other party by thecommunication system inside and outside the hotel. This paper also aims to study the expectation, perception andgaps between customers' expectation and perception on hotel services quality. The key findings from our study are:first, service quality of hotels in Thailand was moderately low; hotels were not able to deliver services as expected;second, customer expectation on services of the boutique hotels was higher than that on the business hotels. Themanagement is able to apply research findings in designing and prioritizing hotel strategies, and to recognizeweaknesses of service quality to improve service quality in hotel business.

H.P Keerthana Joshi1

IntroductionService refers to social efforts which include evengovernment to fight five giant evils (e.g. ) wants, disease,ignorance, squalor and illness in the society .a servicequality can be termed as a set of quality requirement onthe collective behaviour of one or more attributes asdimension. Servqual service is most valuable when it isused periodically to track service quality trends over aperiod of time . Such a comparison reveals not onlyhow the gap is changing because of changingexpectation or due to changing perception or both. Acompany also use servqual to assess it serviceperformance relative to its principles competitors. Servicequality has become a strategic area of development andan important part of business plan and vision of thecompanies development. It also a central task formanagement at all levels .

Hotel management can influence service delivery bynarrowing organizational gaps and by improving servicequality and customer satisfaction. The service qualitymodel assumes that the difference between the servicethat the customers expect and the service they actuallyget is due to organizational gaps.

Statement of the ProblemThanjavur district is one of the tourist spots in tamilnaduand attract foreign and domestic tourists. Numerousbusinessmen and officials make regular official visits tothanjavur district. These activities regularly promote thefloating population to thanjavur district. Thanjavur districthas been surrounded by historical monuments and

places . There has been opinion that if the district needto attract more tourist then it must offer better boardingand lodging facilities. Considering these aspects andthe hotel accommodation available in thanjavur district ,an attempt has been made to understand the visitor’sexpectation and perception about the quality ofhospitality industry in this district. The key for successof business is customer satisfaction and hence hotelindustry business also faces hectic competition

OBJECTIVES OF THE STUDY• The general objective of this project is to study on

gap analysis in hotel in thanjavur.• To study the marketing service provided by the hotel

industry.• To analyze the service mix of the hotel industry.• To identify the customer satisfaction and to measure

the service quality of the hotel industry.• To suggest suitable measures for the improvement

of hotel

Area of the StudyThe study has been confined to Thanjavur townSample SizeThe number of respondent considered for sampling is100.Data CollectionIn this study the researcher has collected both primaryand secondary data



Statistical Tools UsedStatistical tools like percentage analysis and chi- squaretest is used in servqual model. This servqual model areto be used for the analysis table, graphs, diagram willalso be used to present the proceed data.

Scope of the StudyThanjavur district is attracting a lot of foreign tourists aswell as domestic tourist. It would be worthwhile to assessthe quality of service production by the existing hotel tothe tourists, and this study is to assess and examinethe perception of the guests of the hotel regarding thequality of the hospitality and to demonstrate ways bywhich these hotel can make qualitative improvements inservices.

This study has been focused towards the service providedby the hotel industry in the thanjavur marketing mix ofservices and customer satisfaction about hotel industry.The study focuses service quality aspects of selected 5hotels in thanjavur at all levels including small, mediumand star category.

The study results can be applied for devising competitivestrategy in hotel industry the result may throw light onpitfalls of the players in the markets and may pave wayfor improving The satisfaction level of the customers.

Limitation of The Study• The study is confined only to hotel in thanjavur .• The study covers current period for collection of

primary data• In this study the researcher considers only tourists

spots like thanjavur.

TABLE - 1 :Distribution of the Respondent BasedOn the Hotel

1 Tamilnadu hotel 19 19

2 Sangam hotel 32 32

3 Parisutham hotel 31 31

4 Pla hotel 18 18

5 Others 0 0

Total 100 100

S.no No. of.respondent PercentageName of the

hotel

Sources of Data : Primary Data

InterpretationFrom the above data 32% of the respondent prefersangam hotel.

Table - 2 : Distribution of The Respondent BasedOn Choosing A Particular Hotel

1 Low cost 16 16

2 More convince 55 55

3 Status symbol 14 14

4 Multi usage 15 15

Total 100 100

S.no No. of.respondent PercentageOpinions

Sources of Data: Primary Data

InterpretationMore then half( 55%) of the respondent opioned thatthey prefer the hotel for more convince.

TABLE - 3 : Distribution of the Respondent BasedOn Providing Service

1 Strongly agree 36 36

2 Agree 52 52

3 Neutral 12 12

4 Disagree 0 0

Total 100 100

S.no No. of.respondent PercentageOpinions


InterpretationMore than half( 52%) of the respondent are opioned thatthe hotel providing a good service to the customers.

Table - 4 : Distribution of The Respondent BasedOn Providing A Fire Safety Facility And

Instruction


2 Agree 55 55

3 Neutral 16 16

4 Disagree 0 0

Total 100 100

S.no No. of.respondent PercentageProvide service


InterpretationMore then half( 55%) of the respondent opioned that thehotel providing a fire safety to the customers.

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Table - 5 : Distribution of The Respondent BasedOn The Hotel Visual Appearing


2 Agree 44 44

3 Neutral 12 12

4 Disagree 3 3

Total 100 100

S.no No. of.respondent PercentageHotel visual

appearing

Sources Of Data: Primary Data

InterpretationFrom the above data44% of the respondent are agreethat the hotel providing a good visual appearing to thecustomers.

Findings• 32% o the respondent are mostly prefer sangam

hotel.• 55% of the respondent are using a particular hotel

for more convince.• More than half (52%) of the respondent are opioned

that the hotel providing a good service to thecustomers.

• more than half (55%) of the respondent are opionedthat they provide fire safety to the customers.

• 44% of the respondent are agree that they have agood visual appearing in the hotel.

• 53% of the respondent are opioned that they provideinternet facility to the customers.

• Half (50%) of the respondent are agree that theyprovide easy reservation facility to the customers.

• 76% of the respondent are accepted hence they havegiven clean and comfortable rooms.

• 45% of the respondent are strongly agree that thecustomer should prefer the accommodation withinthe budget.

• 87% of the respondent are accepted that they providequality of food and beverage in the hotel.

Suggestion• Many of the hotel in the observed sample neither of

professional training while the employees in the otherhand attend the computer course .

• Conflict role doesn’t exist in the observed hotel ifany conflict arise they solved with discussion transferto another work position of salary reduction.

• All managers are always discussed with theemployees for promotions of the hotel.

• Managers said that employees are allowed to makethe own decision when satisfying guest demands butthose decision doesno’t exceed there responsibilitiesand possibilities.

• Many of the manager do not have the determinecriteria for appreciating and an employees.

ConclusionThe presented gap model of service quality representthe right way of identifying inconsistency betweenperception of a company and perception of the customerwhen the quality of the service process is concerned.this model can help management to identify the reasonof poor service quality in its company and take a suitablemeasure for the improvement o the same. developmentof strong relationship with customer continuous followingof changes in the demand of the customer anddevelopment of different revival strategies when mistakesin the delivery of the service occur re the best way howto overcomess problems which are caused by theexistence of gap analysis.

Reference1. Anderson, E.W., Fornell, C. and Rust, R.T., 1997,


2. Sunder – A research study, “Indian Journal oftransport managemenet, Volume No. 33 No. 4(October – December 2009) pp278-297

3. Bennett, R. and Rundle-Thiele, S. (2004), “Customersatisfaction should not be the only goal”, Journal ofServices Marketing, Vol. 18, No.7,pp.514-23. Kotler,P. (2003), Marketing Management, PearsonEducation, Delhi.



A STUDY ON RECEIVABLE MANAGEMENT OF SELECTED INDIAN STEEL INDUSTRY

1 . Head, Department of Commerce, Bon Secours College for Women, Thanjavur2 . Research Scholar, Department of Commerce, Bon Secours College for Women, Thanjavur.

Abstract

Management of trade credit is commonly known as Management of Receivables. Receivables are one of the threeprimary components of working capital, the other being inventory and cash, the other being inventory and cash.Receivables occupy second important place after inventories and thereby constitute a substantial portion of currentassets in several firms. The capital invested in receivables is almost of the same amount as that invested in cash andinventories. Receivables thus, form about one third of current assets in India. Trade credit is an important market tool.As it acts like a bridge for mobilization of goods from production to distribution stages in the field of marketing.Receivables provide protection to sales from competitions. It acts no less than a magnet in attracting potentialcustomers to buy the product at terms and conditions favorable to them as well as to the firm. Receivables managementdemands due consideration not financial executive not only because cost and risk are associated with this investmentbut also for the reason that each rupee can contribute to firm's net worth.

Key words: Management, Receivable, Inventory and Cash, Investment

S.Suganya2A.N.Christy1

IntroductionReceivables management is the process of makingdecisions relating to investment in trade debtors. Certaininvestment in receivables is necessary to increase thesales and profits. But at the same time selling of goodson credit results in blocking of firm’s funds in accountsreceivables. Additional funds are, therefore, required tomeet the working capital needs of a business whichrequire extra costs in terms of interest. Moreover,increase in receivables also increases the risk of baddebts. Thus, the objective of receivables managementis to take a sound decision as regards investment indebtors.

The objectives of receivables management is to promotesales and profit until that point is reached where thereturn on investment in further finding of receivable isless than the cost of funds raised to finance thatadditional credit (i.e., cost of capital). The primary aimof receivables management vet in minimizing the valueof the firm while maintaining a reasonable balancebetween risk (in the form of liquidity) and profitability.The main purpose of maintain receivables is not salesmaximization not is for minimization of risk involved byway of bad debts. Had the main objective being growthof sales, the concern, would have opened credit salesfor all sort of customers. Contrary to this, if the aim hadbeen minimization of risk of bad debts, the firm wouldnot have made any credit sale at all. That means a firmshould indulge in sales expansion by way of receivables

only until the extent to which the risk remains within anacceptably manageable limit.

Scope of the StudyThe study attempts to assess the financial position ofthe receivables in SAIL steel and TATA steel Ltd. Itincludes the assessing of its strength and weakness. Itwill be helpful for further development of the company.The financial analysis basically a study relationshipamong the various financial factors in the SAIL steeland TATA steel. This analysis used for increase itsfinancial position.

Objectives of the Study• To Study about the financial status of SAIL steel

and TATA steel Ltd.• To analyze the receivable management.• To analyze growth of sale and credit the position of

the study unit.• To identify the promotional activities for better

performance in collection of receivable of thecompanies.

• To make suggestions for financial soundness of thecompanies.

Profile of Indian Steel IndustrySteel Industry in IndiaSteel has been the key material with which the worldhas reached to a developed position. All the engineeringmachines, mechanical tools and most importantly

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building and construction structures like bars, rods, channels, wires, angles etc are made of steel for its featurebeing hard and adaptable. Earlier when the alloy of steel was not discovered, iron was used for the said purposesbut iron is usually prone to rust and is not so strong. Steel is a highly wanted alloy over the world. All the countriesneed steel for the infrastructural development and overall growth. The steel long products are required to produceconcrete, blocks, bars, tools, gears and engineering products. After independence, successive governments placedgreat emphasis on the development of an Indian steel industry. In Financial Year 1991, the six major plants, ofwhich five were in the public sector, produced 10 million tons. The rest of India steel production, 4.7 million tons,came from 180 small plants, almost all of which were in the private sector. India’s Steel production more thandoubled during the 1980s but still did not meet the demand in the mid-1990s, the government was seeking private-sector investment in new steel plants. Production was projected to increase substantially as the result of plans toset up a 1 million ton steel plant and three pigeon plants totaling 600,000 tons capacity in West Bengal, withChinese technical assistance and financial investment. The commissioning of Tata Iron & Steel Company’s productionunit at Jamshedpur, Bihar in 1911-12 heralded the beginning of modern steel industry in India. At the time ofIndependence in 1947 India’s steel production was only 1.25 Mt of crude steel. Following independence and thecommencement of five year plans, the Government of India decided to set up four integrated steel plants at Rourkela,Durgapur, Bhilai and Bokaro. The Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mtintegrated steel plant with modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over40% of India’s crude steel production. SAIL comprises of nine plants, including five integrated and four special steelplants. Of these one was nationalized and two were acquired; several were set up in collaboration with foreigncompanies. SAIL also owns mines and subsidiary companies.

Table - 1 : Analysis And Interpretation of Receivables Management In Selected Steel Companies InIndia Size of Receivables of Steel Companies

Year Receivable % of C.A Receivable % of C.A

2009-10 3095.29 21.81 881.73 28.96

2010-11 3132.79 20.18 877.43 25.69

2011-12 3940.43 20.06 939.98 8.53

2012-13 5421.04 20.81 913.66 22.58

2013-14 5750.85 16.9 1487.42 22.35

AVG 4268.1 19.95 1020.04 21.62

MAX 5750.85 21.81 1487.42 28.96

MIN 3095.29 16.9 877.43 8.53

Company SAIL TSL

(Rs. In crores)

Sources: Annual Reports of steel Companies From 2009-2010 to 2013-2014

Fig. 1



Table - 2 : Index Of Growth In Annual Sales And Receivables Of Steel Companies

(In Indices)

Year Indices of Receivable Sale indices Indices of Receivable Sale indices

2009-2010 106.98 195.48 64.86 257.75

2010-2011 108.27 198.51 64.54 278.30

2011-2012 136.19 241.03 69.14 321.08

2012-2013 187.36 280.10 67.21 360.43

2013-2014 198.76 298.97 109.41 436.03

AVG 147.51 242.81 75.03 330.71

Max 198.76 298.87 109.41 436.03

Min 106.98 195.48 64.86 257.75

Company SAIL TSL


Fig. 2

Table - 3 : The Size of Sundry Debtors To Current Assets In Selected Steel Companies

(In crores)

Ratio Debtors in Rs % of C.A Debtors in Rs % of C.A

2009-2010 1908.5 13.4 581.8 19.1

2010-2011 1881.7 12.1 539.4 15.8

2011-2012 2314.8 11.8 631.6 5.7

2012-2013 3048.1 11.7 543.5 13.4

2013-2014 3024.4 8.9 636.0 9.6

AVG 2435.5 11.58 586.46 12.72

Max 3048.1 13.4 636.0 19.1

Min 1881.7 8.9 539.4 5.7

Size of debtors Steel Authority of India ltd Tata Steel ltd

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Fig. 3

Table - 4 : SIZE OF LOANS AND ADVANCES OF STEEL COMPANIES

(Rs. In crores)

Year Loan advances Indices loan & advances Loan advances Indices loan & advances

2009-2010 327.8 90.1 1082.4 273.7

2010-2011 285.8 78.5 894.1 226.1

2011-2012 323.9 89.0 2751.3 695.6

2012-2013 397.3 109.2 2101.7 531.4

2013-2014 441.0 121.2 3926.7 992.8

AVG 355.16 97.6 2151.24 543.92

Max 441.0 121.2 3926.7 992.8

Min 323.9 89.0 894.1 226.1

Company SAIL TSL


Fig. 4



Table - 5 : Accounts Receivables Turnover Ratio Of Steel Companies(Ratio in Times)

Year Ratio in times Indices Ratio in times Indices

2009-2010 10.30 182.73 18.00 397.39

2010-2011 10.34 183.34 19.53 431.19

2011-2012 9.98 176.98 21.03 464.36

2012-2013 8.43 149.50 24.29 536.30

2013-2014 8.48 150.42 18.05 398.52

AVG 9.50 168.59 105.9 445.55

Max 10.34 183.34 24.29 536.30

Min 8.43 149.50 18.00 397.39

Company SAIL TSL


Fig. 5

Table - 6 : Receivables To Sales Ratio of Steel Companies(Ratio in Percentage)

Ratio % of Receivable Indices %of Receivable Indices

2009-2010 5.74 8.71 5.56 25.16

2010-2011 102.33 155.53 5.12 23.19

2011-2012 105.75 160.52 4.76 21.54

2012-2013 N.A N.A 4.12 18.65

2013-2014 N.A N.A 5.54 25.09

AVG 71.27 108.25 5.02 22.72

Max 105.75 160.52 5.56 25.16

Min 102.33 8.71 4.12 18.65

Company SAIL TSLTSL SAIL


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Fig. 6

Average Collection Period of Steel Companies(period in Days)

2009-2010 35 20 27.5

2010-2011 35 19 27.0

2011-2012 37 17 27.0

2012-2013 43 15 29.0

2013-2014 43 20 31.5

AVG 38.6 18.2 28.4

Max 43 20 31.5

Min 35 15 27.0

Company SAIL TSL AVG


Fig. 7



Findings• The receivable to current assets of the steel

companies shows fluctuating trend throughout studyperiod. The minimum size of receivable to currentassets in SAIL is 16.9 (13-14), and TSL is 8.53 (2011-2012). The maximum size of receivable to currentassets in SAIL is 21.81 (2009-2010), and TSL is28.96 in (2009-2010). The study of the compositionof receivable to current assets is a very importanttool to evaluate the management of receivables. Itassists to show the point where receivables areconcentrated most.

• An increasing trend can also be observed in the valuesof both sales and receivable of SAIL during studyperiod but the receivables grow faster than sales.

• Size of loans and advances of SAIL showed highfluctuated trend with the range of 3926.7 percent and894.1 percent with an average of 2151.24. TSLshowed increasing trend with an average of 543.92percent.

• The accounts receivables turnover ratio during thestudy period was the highest for TSL followed bySAIL The TSL displayed very good ratio.

• The accounts receivables to sales ratio during thestudy period were the highest for Tata Steel Ltd andSteel Authority Of India Ltd. The TSL displayed verygood ratio.

• Average collection period SAIL and was more than50 days indicates that these companies could notcollect their debt from the debtors efficiently whichalso shows an inefficient liquidity position of thecompanies, as the quality of debtor’s was not good.

Suggestions• To strengthen the financial efficiency, long-term funds

have to be used to finance core current assets and apart of temporary current assets. It is better if thecompanies can reduce the over sized short- termloans and advances eliminates the risk arrangingfinance regularly.

• To regularize and optimize the use of cash balanceproper techniques may be adopted for planning andcontrol of cash. The investments in inventories shouldbe reduced and need to introduce a System OfPrompt Collection Of Debts.

ConclusionThe study on Receivable analysis of SAIL and Tata steelLtd. Consist a lot of practical knowledge and skills. Thefinancial analysis of these companies satisfactory.Overall analysis of the study shows positive results. Thecompany’s collection of debts Receivable methods hasbeen effectively. This is the major reason for theirachievement in Indian steel industry.

References• Chakaravarty and Reddy (1961-1971):

Management Accounting Sultan Chand and Sons,New Delhi.

• Poddar (1962&1966): Liquidity Management,Analysis of Financial Statements of Indian Industries,NewDelhi.

• Khandelwal (1985): Fianacial Management, VikasPublishing House Pvt. Ltd., New Delhi.

• J.Panda and A.K.Sathapathy (1988): LiquidityManagement, New Delhi, Vision Books Pvt. Ltd.

• Miss Nandini Jaimini (1988-1989): WorkingCapital, Me Millan, Company, NewDelhi.

• Dr.Pramod Kumar (1991): Management Accounting- Text and Cases Richard D. Irwin. Inc. NewDelhi.

• R.S.Tiwari (1998): Financial Statement Analysis,Prentice Hall of India Pvt. Ltd., New Delhi.

• Prof.Amit Malick (1998): Financial Management,Chaitanya House, Allahabad.

• Dr.Sanjay Bhayani (2003): Financial Management,Himalaya PublishingØ House, New Delhi.

• Dr.Bhayani (2012): Analysis of Financial Statementsof Indian Industries, Knishka Publishing House,NewDelhi.

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A STUDY ON EFFECTS OF STRESS ON ORGANIZATIONALPRODUCTIVITY AT ARINGAR ANNA SUGAR MILL, KURUNGULAM

1 . . Research Scholar, Department of Commerce, Bon Secours College for Women, Thanjavur.

Abstract

Stress is the pressure people feel while at work and in private life. Stress at work is inevitable because of the thoughtof the thought process required in the job performance. Private life is full of anxieties and personal pressure. But,stress becomes very harmful when it is seriously realized by the mind and heart. Then, it becomes painful andcreates many physical and psychological problems which are reflected in the day-to-day life of organizationalperformances. It causes an adverse strain on one’s emotion’s, thought process and action. A stressful body becomesburdensome to the employee. He becomes useless to the organization. Stress usually thought of a negative term asdistress but there is positive and pleasant side at stress caused by good thing for example when an employee isoffered a job promotion. This project on stress management gives a detailed idea of what is stress and also thedefinition of stress is been defines. The research aims to understand the concept of stress management analyze; thecompany’s working environment; check the degree of stress undergone by the employees; study the stress managementtechniques adopted by the company and suggest measures for improving the stress management and overallemployee satisfaction.

Key words: Stress, work, performance, management.

R .Gayathri1

IntroductionStress refers to the strain from the conflict between ourexternal environment and us, leading to emotional andphysical pressure. In our fast paced world, it is impossibleto live without stress, whether you are a student or aworking adult. There is both positive and negative stress,depending on each individual’ unique perception of thetension between the two forces.

Stress management is the need of the hour. Howeverhard we try to go beyond a stress situation, life seemsto find new ways of stressing us out and plaguing uswith anxiety attacks. Moreover, be it our anxiety, mind –body exhaustion or our erring attitudes, we tend tooverlook causes of stress and the conditions triggeredby those. In such unsetting moments we often forgetthat stressors, if not escapable, are fairly manageableand treatable.

Statement of the problemJob stress is very important because of the many problemand conflict which regularly plague people in theorganization. This study is not to enable to discoverclever techniques, for influencing people, not tomanipulate people but to assist one in working moreefficiently with other people in the organization. Studyof Job stress helps one to learn what can be done toanticipate prevent or resolve conflict among organizationmembers.

Objectives of the Study• To study the socio demographic characteristics of

the respondents• To study the level of stress faced by the respondents• To find the various factors that causes the origin of

the stress• To give a valuable suggestion for overcoming the

stress.

Importance of the StudyWhy study on stress is important? There are manyreasons; some of them are listed down here:a) Stress reduces efficiency and productivity.b Stress induces sickness and reduce life span.c) Stress causes accidents, alcoholism, drug abuses

etc. which are the symptoms of poor mental health.d) Stress related sickness are very difficult to detect

and often detected too late.e) Stress sickness takes considerable long time to cure.

Research DesignDiagnostic cum descriptive study has been adopted.Sources of dataThe data was collected from primary and secondary data.



Universe of the studyThe universe of this study consisted of the total workforceof Aringar Anna Sugar Mill, Kurungulam. The wholepopulation is 486 Members.

Sampling method and Sample sizeThe researcher used simple random sampling techniquesand selected 60 sample from the universe.

Statistical toolsThe researcher converted the data into tables. To analysethe data using percentage analysis, chi – square testand Student’s ‘t’ test was used.

Null Hypothesis1. There is no significant association between age and

satisfaction of health and safety measures providedby the organization.

2. There is no significant association between maritalstatus and difficult to concentrate by their work.

Alternative Hypothesis1. There is a significant association between age and

satisfaction of health and safety measures providedby the organization.

2. There is a significant association between maritalstatus and difficult to concentrate by their work.

Scope of the StudyEvery person has a unique set of talents, ambitions andwork experience to a job. These personal changes takeplace over time, often as a result of the degree of successor failure the person experience in the work world.Matching such unique set of personal qualities tostandardized technology can create problems. Theorganizational aspect of a company as its size geographic,location, economic health and degree of automationdefine the scope of work and the activity in each workdivision. These often causes difficulties in job stress.

Even experienced worker, may not be able to perform,their roles or tasks in work group in a competent mannerbecause the time they take to adjust, cannot only createproblems with production but some kind of human jobstress, and problem between the co-worker andsupervisors

Limitations of the Study• The study was conducted only for the employees of

Arignar Anna Sugar Mills, Kurungulam.• The data was collected through questionnaire. The

response from the respondents may not be accurate• The sample taken for the study was only 60 and the

results drawn may not be accurate• The duration of the study was limited to one month

only.

Review of LiteratureKavitha (2012)The article focuses on the organizational role stress forthe employees in the It sector. It also highlights thatwomen face more stress than men in the organizationto be more specific married women faces more stressthat the unmarried women.

Karthik. R.(2013) Employee’s performance at work isinfluenced by stress that can be either positive ornegative. The employee’s performs better if they facemoderate amount of stress. Hence, it aims at reducingthe level of stress rather than eliminating stresscompletely.

Company ProfileIntroductionThe Tamil Nadu Sugar Corporation limited is a registeredcompany under the provisions of companies Act 1956.The Arignar Anna Sugar Mill is one of the units of TamilNadu Corporation limited. The Arignar Anna Sugar millis situated in Kurungulam, Melpathy village, ThanjavurTaluk, about 16 kilometers away from Thanjavur –Pudukottai highways.

Sugarcane Area Operation Of MillsThe area of operation of mills a part of Thanjavur Districtand part of Pudukkottai District which covers the followingtaluks.Thanjavur District• Thanjavur Taluk• Thiruvaiyaru Taluk• Orathanadu Taluk• Part of Papanasam Taluk• Pudukkottai District• Part of Gandarvakottai Taluk• Part of Pudukkottai Taluk

National Awards• 1985 – 86 – productivity award(2nd prize)• 1986 – 87 – productivity award(1st prize)• 1987 – 88 – second prize for higher standards of

technical efficiency• 1988 – 89 – prize and commendation certificates for

higher standards of technical efficiency• 2001 – 2002 – state level safety award (3rd prize) for

group B industries.• 2003 – 2004 – Best performance sugar factory award

by SISSTA.• Arignar Anna Sugar Mills, Kurungulam get technical

performance award in the 2004 – 2005 crushingseason among the South Indian Sugar Mills.

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Table - 1 : Data Analysis and Interpretation

S. No Factors Opinion %

1 Are you have a lot of work Yes /No 52/ 48

2 Hygienic condition in and around the work place Yes /No 17/ 83

3 Stress due to over work load Yes/ No 86 / 14

4 Stress due to night shift Yes/No 93 / 07

5 Do you work during stress Yes/No 42 / 58

6 Are you move out of work place due to suffocation Yes/No 42/ 58

• Majority (52%) of the respondents have a lot of work in their job• 83% of the respondents opined that their organization have to maintain hygienic condition in and around the

work place.• 86% of the respondents are affected stress due to work hard• 93% of the respondents opined that they suffer from stress by night shift• Majority (58%) of the respondents can’t do the work during stress• More than half (58%) of the respondents are not move out of work place due to suffocation.

Test - 1 : An association between age and satisfaction of health and safety measures provided by theorganization

S. No Age Satisfaction of health and safety facilities Statistical Interference

Yes No(N = 6) (N = 54)

1 25 yrs – 30 yrs 3 (50%) 4 (7.4%)

2 30 yrs – 40 yrs 2 (33.3%) 8 (14.8%)

3 Above 40 yrs 1 (16.7%) 42 (77.8%)

x2 = 12.322D.f = 2TV = 5.99CV>TVNot Significant

ConclusionAlternative hypothesis is accepted. That there is a significant association between age and satisfaction of healthand safety measures provided by the organization

Test - 2 : An association between marital status and difficult to concentrate by their work

ConclusionNull hypothesis is accepted. There is no significant association between marital status and difficult to concentrateby their work.

Suggestions• Effective counseling can reduced job stress and can lead to psychological support.• The introduction of relaxation technique like gymnasium facility will reduced the stress.• The company should increase the opportunity for employees who are more experienced to make the work more

efficient and effective.

S. No Difficult to concentrate Mean S.D Statistical Inference

1 Married (N = 54) 1.58 0.504

2 Unmarried (N = 6) 1.50 0.548

t = 0.085D. f = 5TV = 0.933CV < TVSignificant



• Since few respondents strongly disagree with regardto promotion, the company should considered theemployees effort provide reasonable reward.

• Proper welfare measure to be given to the employees.

ConclusionThis study was useful to researcher because researchercame to know about effects of stress on organizationalproductivity, house stress the employees productivity,quality output etc. The presence of stress at work isalmost inevitable in many jobs. A person needs toundergo a certain level of stress to perform will. Whenstress exits a certain level, it can have adverse effect ona person’s emotions, mental and physical health. Thusemployees can cope with stress by understanding theirstrength and weakness, performing their work in asystematic work and planned manner and developingpositive attitude towards life and work.

Finally, the researcher found that a effects of stress onorganizational productivity at Arignar Anna Sugar Mill,is at satisfactory level.

References1. John. W. Newstrom Keith Devis, “Organizational

Behaviour”, Tata McGraw – Hill Publishing CompanyLtd, Eleventh Edition (2002)

2. Fred Luthans, “Organizational Behaviour”, Mc Graw– Hill Publishing Company Ltd, Ninth Edition (2002)

3. Stephen P. Robins, “Organizational Behaviour”, SanDiego State University, Tenth Edition (2003)

4. R.K Suri Sanjiv Verma, “OrganizationalBehaviour”Wisdom Publication, First Edition ( 2002)

5. M.N. Mishra, “Organizational Behaviour”, VikasPublishing House Pvt Ltd, Third Edition (2007)

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STUDYING THE FINANCIAL PERFORMANCE OF STOCK THROUGHTRADING, INVESTMENT AND MUTUAL FUND

1 . Professor and Head, Bharathidasan University Constituent College for Women. Orathanadu.2 . Research Scholar in Commerce, Bharath College of Science and Management, Thanjavur.

Abstract

Idea beyond this concept is earning through income more difficult than that of savings, Trading mostly carried out byincome of people but MFs are mostly done on saving basis. Earning through the stocks are quite difficult puzzle evenexperts in the field. A small investor has to face many difficulties in the share market .He is not in a position to getprofessional advice from the financial experts. By considering these difficulties mutual funds have come to boon to asmall and medium investors.

J. Elanchezhian2Dr.K. Kalaichelvi1

IntroductionInvesting and trading are two very different methods ofattempting to profit in the financial markets. The goal ofinvesting is to gradually build wealth over an extendedperiod of time through the buying and holding of a portfolioof stocks, baskets of stocks, mutual funds, bonds andother investment instruments. Investors often enhancetheir profits through compounding, or reinvesting anyprofits and dividends into additional shares of stock.Investments are often held for a period of years, or evendecades, taking advantage of perks like interest, dividendsand stock splits along the way. While markets inevitablyfluctuate, investors will “ride out” the downtrends withthe expectation that prices will rebound and any losseswill eventually be recovered. Investors are typically moreconcerned with market fundamentals, such as price/earnings ratios and management forecasts.

Trading, on the other hand, involves the more frequentbuying and selling of stock, commodities, currency pairsor other instruments, with the goal of generating returnsthat outperform buy-and-hold investing. While investorsmay be content with a 10 to 15% annual return, tradersmight seek a 10% return each month. Trading profitsare generated through buying at a lower price and sellingat a higher price within a relatively short period of time.The reverse is also true: trading profits are made by sellingat a higher price and buying to cover at a lower price(known as “selling short”) to profit in falling markets.Where buy-and-hold investors wait out less profitablepositions, traders must make profits (or take losses)within a specified period of time, and often use a protectivestop loss order to automatically close out losing positionsat a predetermined price level. Traders often employtechnical analysis tools, such as moving averages andstochastic oscillators, to find high-probability tradingsetups.

A trader’s “style” refers to the timeframe or holding periodin which stocks, commodities or other tradinginstruments are bought and sold. Traders generally fallinto one of four categories:• Position Trader – positions are held from months to

years• Swing Trader – positions are held from days to weeks• Day Trader – positions are held throughout the day

only with no overnight positions• Scalp Trader – positions are held for seconds to

minutes with no overnight positions

Traders often choose their trading style based on factorsincluding: account size, amount of time that can bededicated to trading, level of trading experience,personality and risk tolerance. Both investors and tradersseek profits through market participation. In general,investors seek larger returns over an extended periodthrough buying and holding. Traders, by contrast, takeadvantage of both rising and falling markets to enter andexit positions over a shorter timeframe, taking smaller,more frequent profits.

A mutual fund is a professionally managed investmentfund that pools money from many investors/householdto purchase securities.The first introduction of a mutualfund in India occurred in 1963, when the Government ofIndia launched Unit Trust of India (UTI). Until 1987, UTIenjoyed a monopoly in the Indian mutual fund market.Then a host of other government-controlled Indianfinancial companies came up with their own funds. Theseincluded State Bank of India, Canara Bank, and PunjabNational Bank. This market was made open to privateplayers in 1993, as a result of the historic constitutionalamendments brought forward by the then Congress-ledgovernment under the existing regime of Liberalization,Privatization and Globalization (LPG). The first private



sector fund to operate in India was Kothari Pioneer, whichlater merged with Franklin Templeton. In 1996, SEBI,the regulator of mutual funds in India, formulated theMutual Fund Regulation which is a comprehensiveregulatory framework. Income from MFs could take twoforms—dividends and capital gains.

Objectives• To know about the preference of the respondent

towards stock and savings.• To give suggestions for improvement of return in their

saving• To understand the respondentperception about stock

and income• To guide in allocating saving and to reduce risk which

in nature of investment• To understand income and age plays any role in

allocation of savings

Scope• It can reduce role the bullions, for widen area of

participation in share and MF• Limits the depended on deposits in banking• Reduce risk in own trading and guiding how to

manage the savings• Enlarge the needs of mutual fund• To get suggestion for improvement or changes in the

services of MF.• Risk may include the future studies, to understand

the market well.

Research methodologyThis study used the descriptive and exploratory researchdesign analyzing of secondary data combined withshared thoughts of research’s academics peers andexperts in finical service has given solid based fordescriptive analysis. The perceptional analysis to explorethe opinion of the 100 respondents selected inconvenience sampling .pilot tested structuredquestionnaire method is used in this study.

Data collectionIn this study primary and secondary data were usedand Sampling techniques were used.

Limitation of this study• A time constraints was one of the major limitations

of the study.• Major limitation was not able include risk associated

with stocks• Only limited time was spent for doing the survey.

• The study is limited to the study of expectations ofand perceptions of respondent having/had an accountin stock market.

• Primary data has its own limitations.• The study relies on primary data which could be

biased and this study sample size only 100respondents.

Analysis of ResultsThe study is conducted with the help of statistical toolslike Percentage Analysis and Chi Square Test aftercirculating questionnaires to the respondents.

Table - 1 : Preference of Respondent TowardsSelecting

Male 16(16) 37(37) 24(24) 77

Female 2(2) 11(11) 10(10) 23

18 48 34 100

Investment Mutual fundTrading Total


Brackets in parenthesis indicates percentage on totalTable 1 show that majority 37% of the respondents preferonly Investments compare to Trading and Mutual Funds

Table - 2 : The role of the income of therespondent

Less than Rs. 10 000 2 2 2 6

Rs.10 000 – Rs.20 000 8 9 11 28

Rs.20 000 – Rs.30 000 5 10 13 28

Rs.30 000 – Rs.40 000 2 12 5 19

Above Rs.40 000 1 15 3 19

18 48 34 100

Investment InvestmentTrading TotalIncome of theconsumers


Applying Chi square Test for the Table 2H0: There is no significant Difference between Incomeof the responded and preference of the trading,investment and mutual fund.H1: There is significant Difference between Income ofthe responded and preference of the trading, investmentand mutual

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2 1.08 .92 0.783

8 5.04 2.96 1.738

5 5.04 -.04 .0003

2 3.42 -1.42 0.589

1 3.42 -2.42 1.712

2 2.04 -.04 0.0007

11 9.52 1.48 0.230

13 9.52 3.48 1.272

5 6.46 -1.46 0.329

3 6.46 -3.46 1.853

2 2.88 -.880 0.268

9 13.44 -4.44 1.466

10 13.44 -5.44 2.383

12 9.12 2.88 .909

15 9.12 5.88 3.79

Calculated 17.323

E O-EO (OE) 2 / E

Source: Calculated

Degrees of Freedom = (r-1) (c-1)= (5-1) (3-1) = 8

X2 (Chi square) Table Value at 5% Significant Level =15.507Calculated Value =17.323Inference: since calculated value (17.323)is higher thantable value15.507,we reject our Ho and say, There issignificant Difference between Income of the respondedand preference of the trading, investment and mutual

Table - 4 : The role of the age of respondent

Table - 3

Less than -20 1 2 2 3

20 – 30 3 15 4 16

30-40 5 18 5 35

40-50 2 10 11 28

Above 50 7 3 13 18

Calculated 18 34 48 100

Investment MutualfundTrading TotalAge of

respondent


H0:There is no significant Difference between age of theresponded and preference of trading, investment and MF.H1: There is significant Difference between age of theresponded and preference of trading investment and MF.

1 0.54 .46 0.391

3 2.88 .12 0.004

5 6.30 -1.3 0.268

2 5.04 -3.04 1.833

7 3.24 3.76 4.363

2 1.02 .98 0.941

4 5.44 -1.44 0.381

5 11.90 -6.9 4.000

11 9.52 1.48 0.230

13 6.12 6.88 7.734

2 1.44 0.560 0.217

15 7.68 7.320 6.976

18 16.80 1.202 0.085

10 13.44 -3.44 0.880

3 8.64 -5.64 3.681

Calculated 31.984

E O-EO (OE) 2 / E

Table - 5

Degrees of Freedom = (r-1) (c-1)= (5-1) (3-1) = 8

X2 (Chi square) Table Value at 5% Significant Level =15.507Calculated Value = 31.984Inference : since calculated value (31.984)is much higherthan table value15.507,we reject our Ho and we say,There is significant Difference between age of theresponded and preference of the trading, investment andmutual fund

Table - 6 : Past performance trading, investmentand mutual on average basis for 1,3,and 5 year

2 8.2 10.81

1 31 21.66

3 21 11.65

Investment Mutual fundTrading

Primary data for trading and investment

For MF (SBI BlueChip Fund-Reg(G) for mutual fund)Ho: There is no significant difference between returns oftrading, investment, and mutual fundH1: There is significant difference between returns oftrading, investment, and mutual fund



Table - 7 : ANOVA table for one-way classification

Between treatments 3-1=2 516.58 258.29 4.6108

Error 8-2=6 336.11 56.0183

S.S M.S.SD.F f-ratioSource of variation

Table value : Table value of F for(2,6) d.f of 5% level ofsignificance=5.14(from F-table)Inference: since calculated F is less than table value ofF ,we accept our Ho and we say no significant differencebetween returns of trading, investment, and mutual fund

Finding and Suggestion• Majority 77% of the respondents are male so stock

are mostly handled by men’s• Majority 48% of the respondents are choose

investment.• Age plays major role in preference over selection of

trading ,investment and mutual fund

• Income also does the job in preference over trading,investment and mutual fund.

• Mutual fund is provides moderate income with lowrisk for long term basis

• Going with stock is benefited over bank deposits andbullions

ConclusionShare market today, is one of the most preferredinvestment avenues in India. High validity is reduce theparticipations range and number. Now, high exposureis also cases validity in market .FII and global economicconditions have make trading and investment so risky.A mutual fund is a professionally managed one thatreduces risk and provide normal return to participations.

References1) Mondo Vision web site: Chambers, Clem. “Who

needs stock exchanges?” Exchanges Handbook. —retrieved 1 February 2008

2) web site: franklintempleton mutualfund.in3) web site: funds india .com4) Nakate S.R : “Emerging trends in financial systems

‘’volume no 6 (issn no0976-2183 ) IJRCM5) www.amfi.com

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A STUDY ON EMPLOYEE BRANDING WITH SPECIAL REFERENCE ATCHENNAI

1 . Assistant Professor, School of Management Studies, Bon Secours College for Women, Thanjavur.

Abstract

This project deals with the employee branding towards is a new twist on identify regulation. Employee brandingshapes employees’behaviour’s that they project the brand identity for the organization's products through every daywork behaviour. The main objective of the study is about to analyses the opinion of the employee branding to studythe level of satisfaction of the employees about awards, talents, opportunity. The main problem behind the study issome of organization and employees feel employee branding is an, individual brand identify the problem regardingemployees and how many companies are still getting it wrong they should be attracting better qualified candidatesinstead of more candidates. Good employee branding helps companies hire quality people and high performancewhich in, turn reduces turnover and improves in this study demographic characteristic such as age, gender, qualification,department, designation and experience are related to the employee branding level of satisfaction towards theemployee branding of the organization. The researcher has conducted the study with 100 samples collected form forthe performance evaluation the reaches are used various statistical tools such as ANOVA,CHI-SQUARE

Key words: Employee branding, Motivation, Awards,Training & Development.

M.Keerthana1

IntroductionEmployee branding is a new twist on identity regulation.Employee branding shapes employees’ behaviour so thatthey project the brand identity of their organization’sproducts through their everyday work behaviour.Employee branding is intended to induce employee-brand identification, a psychological connection betweenthe employee and the brand, to provide an unobtrusive,seemingly unproblematic engine for “on brand behaviour”.To introduce organizational scholars to issues involvedin employee branding, this essay outlines some of theassumptions, tactics and practices of employeebranding from marketing and organizational studies todefine employee-brand identification and to develop apreliminary model of how employee branding programscould induce employee-brand identification. In addition,I raise questions about the relationships between theorganization, the employee, and the brand that employeebranding reinforces, and propose directions for futureresearch.

Review Of LiteratureWILLIAMS BOUVIER B (1998)An important component anorganization’s marketing strategy. Successful outcomesare those that result in identification with as well ascommitment and loyalty towards a brand. Developed overtime, these attitudes are manifest in voluntary behaviorsthat contribute towards the success the brand. has cometo be regarded as important to delivering on theorganization’s promise the brand but although FOSTER,

PATRICIA (2003)are acknowledged to have a role to playin the fulfillment the organization’s brand promise, therehas not been as much attention paid to understandingthe processes that lead to successful outcomes. Thisunderstanding would come from a focus and anappreciation their perspective those processes that aremore likely to result in attitudes that are associated withpositive behaviors. DUARTE-TRATTNER(2000) Brand namessaturate the environment making property and thesignifying power they appear on our bodies on our foodeach and every things throughout the culture brandinghas historically objectives that which is brandedtranslating subjects into natural objectives a process interm of Branding Natures.

MethodologyThe present study is based on descriptive analysis,primary data is used to study the objectives and fortesting the hypotheses. A well assessed questionnairewas used to collect the primary data. The primary dataused for the study were collected for a period of twomonths from 10th march 2015

Statement of the ProblemEmployee branding is an is an individual brand identifiesthe problems regarding employees and how manycompanies are still getting it wrong—they should beattracting better qualified candidates instead of morecandidates Good employee-branding helps companieshire quality people and high performers, which in turn



reduces turnover and improves profitability. Casting awide net is no longer the optimal solution. By narrowingyour scope and going specific, it greatly increases yourchances of catching employees that you want, andemployees that want to work for you. Here the biggestproblem in Branding employees is expecting the brandimages from their work place and they want Motivation,rewards & Awards, recognition Hence this study is takento understand the level of employee Branding with variousfactors of various levels to obtain their relationship andto offer suitable suggestion to improve employee Brandingat Hakunamatata solutions pvt ltd.

Objective of the study• To study the working environment relationship

existing• To identify the Training and development• To study the levels of Motivation• To provide awards and recognitions to the employees

Sampling MethodRandom sampling method was adopted to choose thesamples

Statistical tools applied for analysisThe techniques used for analysis are percentageanalysis, anova test, and correlations test chi - squaretest and regression test

Analysis and InterpretationDemographic characteristicsIn employee branding is preferred by 69% of male 31%of female .in employee branding by only 39% in thecase of respondent below 30- 35 age . in the age groupof 25 to 30 is 30%. In the age group 35 to 40 is 13% andabove 40 is 2% only. In the income level of comparisonof employee branding adapted is mostly preferred bymonthly income group 25000-30000 with support of 30%in other case like the monthly income group below 10000-15000 is 25 % in case of respondent earning between20000-25000 is 20%

Table - 1 : Demographic Profile And OpinionTowards Working Environment

Relationship Working Environment Relationship

Male 69 60.0

Female 31 31.0

Total 100 100

NO. OFRESPONDENTS PERCENTAGEPARTICULARS

Table - 2

Officers 20 20

Workers 80 80

Total 100 100


Table - 3

10000-15000 25 25

15000-20000 20 20

20000-25000 15 15

25000-30000 30 30

30000 above 10 10

TOTAL 100 100


Table - 4

20-25 15 15.00

25-30 30 30.00

30-35 39 39.00

35-40 13 13.00

ABOVE 40 2 2.00

TOTAL 100 100


Majority of 89% of the respondent in all above category(Age, gender, Income, status) suggest adaption ofaemployee branding

Impact of Motivation in Employee brandingAfter the crosstab analysis, tat induced them to worktowards motivation using one –way ANOVA And resultare presented in table 5

TABLE - 5 : Demographic variables withMotivation of a employee Branding – ANOVA Test

Working environment relationship 0.345 Accepted

Training and development 0.089 Accepted

Motivation 0.196 Accepted

Awards & Recognition 0.096 Accepted

P VALUE RESULTCOMPONENTS OF EMPLOYEEBRANDING

Page 150




An ANOVA analysis was carried outto find out the working environment relationship between the company andemployees Research proposition – HO – There is no association between demographic characteristics of therespondents and components of employee branding at 5% level of significance

TABLE - 6 : Demographic variables with training and DEVELOPMENT – Chi-Square Test

Gender 2.674 .329 0.124 0.860 Accepted

Age 8.816 .300 0.632 0.212 Accepted

Designation 3.475 .221 0.525 0.122 Accepted

Experience 1.223 .633 0.825 0.123 Accepted

FACTORS CHI SQUARE VALUE SIG CHI SQUARE VALUE SIG DECISIONS

development demographic characteristics of the respondents and their perception towards adaption of training anddevelopmentResearch proposition - H0 -There is no association between demographic characteristics of the respondent andperception of Training and development at 5% level of significance.

Suggestion for introduce a employee branding.In order to identify the impact of using Employee branding intowards multiple regressions has been used. Themultiple regression lines were estimated to analyze the impact of using Employee brandingThe general form of theregression model for the present study is given below.Y=a +a1 x1 +a2x2 + a3x3 + a4x4Y= satisfaction towards Employee Brandinga1= Working environment relationshipa2= Training and developmenta3= Motivationa4=Awards & Recognition

Table no - 7 : Satisfaction towards Employee Branding - Regression analysis

Satisfaction towards 100 1.308 .187 0.020 0.378 .914 .363 .671Employee Branding

Categories Size F value Regression coefficient A1 A2 A3 A4 R Square

Figures in the parenthesis are “t” valuesThis analysis is performed for four components of pay model. The computed F value (.600) indicates that theregression model is fitted for analysing the employee satisfaction towards the pay model was significant. The Rsquare value (0.067) explains 67 %variation on Employee branding.

The regression coefficient reveals that out of four factors of employee branding has significant impact the remainingenvironment relationship The remaining two factors i.e. Training & Development, Motivation have no significantimpact on Employee Branding.

Findings of The Study:• Out Of The Total Respondents 39%of respondents belong to the age group 30-35years. 30% belong to the age

group 25-30 years. And 15% belong to the age group of 20-25 and 13%belong to the age group of 35-40• 69 are male and 31% are female.• 80% of the respondents are workers. And 20% of respondents are officers.• 65 % ofof respondents have finished UG. And 25% of respondents have finished PG.• 25% of the respondents are receiving salary of range 10000-15000 .20% of respondents are receiving salary of

range 15000-20000. 15% of the respondents are receiving salary of range 20000-25000. And 30% of therespondents receive salary above 30000



• In the analysis between Employee branding andenvironment relationship the p value of (0.012) &(0.165) is found to be less than (0.05). Thus therethe exists a significant difference between designationof employee branding.

• There is positive relationship between department,designation, experience, income of the employeesbranding

• In the ANOVA analysis between designation andworking environment relationship the p value ofcomponents (0.112) & (0.012) is found to be lessthan (0.05). Thus there exists a significant differencebetween designations of the employee on pcomponent.

• In the present study the regression analyses revealsthat there is a significant relationship betweensatisfaction towards employee branding Theevaluation, internal alignment, components have nosignificant relationship with the satisfaction of theemployee towards employee branding Rewards andrecognition

Recommendations:• In employee branding the marketing activities used

in personal management aim to create strong brandthat produce the brand equity & increasing employeebrand loyalty.

• Employee branding is a retention Managementtechniques that influencing engagementorganizational culture and others

• Develop Measurement metrics for all branding -oriented employees communication tactics (eg:bonuses, awards and recognitions)

• Employee Motivation is a continuing challenge in workparticularly working environment every employeeneed motivation towards their work.

• Employees rewards and recognition system refersto programs set up by a company to performanceand its motivate.

• Focus on branding oriented social media engagementfacilitate your employees practices on social mediasites both the company and their personal networksand motivate them to socially engage the brand

Conclusion:This study helps to understand the relationship betweenemployees branding and also determine the factors ofeffecting employee branding towards their job. The termbranding “can help an employee to branding themselvesin the organization”. The role of employee branding is toenhance motivations, opportunities, recognitions awardssystem of an employee. Employee can achieve thetarget of the organization when an organization providesadditional training & skills then only the employee getsto understand their efficiency in the organization thusleading to an effective employee branding. The employeeshould be able to serve as a brand ambassador for theorganization. A strong sense of affiliation can be seenfrom an employee towards their job in their organizations.Employee must be living examples for brand values andpromise. A effective employee value proposition expressthe value & Culture of the organization thus helping toattract & retain talents. Finally employees are the assetsof the organizations so each and every employee needsbranding for themselves the organizations thereforebranding is essential for an employee to make theorganizations more effective one.

References••••• Personal brand & the branding process: From hype

to actual benefits for human resources and talentmanagement leaders Williams, Bouvier B

••••• “Through the story”: Organizational recasting and thenecessity of narrative-driven internal branding -Langett, Jeremy

• Branding the learning function: An exploratory study- Pearl, Sumathi

• Building employment brand equity effect of firmpractices, employee outcomes and organizationaloutcomes - Han, Jian

• The employee perspective of internal brandingprocesses: A quantitative study -Pswarayi, Sekayi

••••• Utilizing branding theory to explore the relationshipbetween personal values and perceptions of nursingas a career -Dominiak, Mary Claire

••••• Understanding organizational brand equity: a casestudy of the ontario hockey league -Chard,Christopher R.

••••• Restructuring the employment relationship:Implications for firms, unions, and employees -Clifton, Jean Marie

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Primax International Journal ofprimaxijcmr.com/special-issues/05.BON SECOURS COLLEGE FOR... · 2016. 1. 17. · Primax International Journal of Commerce and Management Research Online