Table of Contents 

Articles-HR 

Working from Home – a Convenience or hindering organizations in becoming a community? 

Mani vannan, Valliammal M, Venugopalan G 

ORGANIZATIONAL GROWTH CAN BE CATAPULTED VERTICALLY THROUGH HUMAN RESOURCE TRAINING- A 

PERSPECTIVE 

Paromita Mukherjee Ojha 

MITHILA STATE 

DR.PREM CHANDRA THAKUR 

Leadership to manage Emotions in Health Care Organizations 

Venkatesh Jeganathan, Balaji Dhandapani 

MANAGE GLOBAL COMPETITIVENESS THROUGH KNOWLEDGE MANAGEMENT 

Ramachandran Yuvaraj 

LEVELS OF HUMAN RESOURCE DEVELOPMENT IN MANDYA DISTRICT OF KARNATAKA -A GEOGRAPHICAL STUDY 

Mahesha D 

OCCUPATIONAL HAZARDS AMONG OPERATORS IN A GARMENT MANUFACTURING UNITS 

Nila A CHOTAI 

APPRAISAL SYSTEM OF THE COMPANY PAY ROLL EMPLOYEE SENIOR, MIDDLE, LOWER MANGEMENT AND OUT- 

SOURCES SKILLED, UNSKILLED EMPLOYEES 

Kush Kumar 

Articles-Finance 

A REVIEW – BANKING IN INDIA- PAST, PRESENT AND FUTURE 

Sanjaykumar l Vitthall Omase, Anil Trimbakrao Gaikwad 

“Corporate Social Responsibilities” with Reference To ITC Ltd. – A Case Study 

Venukumar g 

Relevance of Financial Information on Abnormal Return on Day of official Announcement of Acquiring Banks 

S Venkatesan, Dr. K. Govindarajan 

Articles-Marketing 

The Anatomy of Indian Rural Market 

Supriya Jha 

Sustainable Development in Education with Global change – An Indian Perspective 

Arumugam Madakkannu 

Study of Impact of Green Marketing on Sale 

Ashish Vasantrao Gadekar, Rimalini Ashish Gadekar 

A Study on Noodles Buying Behaviour from Organized Retail Outlets in Coimbatore City 

Uma Krishnasamy, DHIVYA RAJARAM, CHANDRAKUMAR MANI 

CKK's Advertisement Intervention Model 

C.K.Kotravel Bharathi 

" A STUDY ON LOGISTICS & SUPPLY CHAIN MANAGMENT OF DEVI SEAFOODS LTD" AT SINGARAYAKONDA IN 

PRAKASAM DISTRICT, ANDHRA PRADESH, INDIA 

Sreenivasa Rao Vemuri

Articles-Others 

Lifelong Learning: The Challenges in Context of India 

Vijita Singh Aggarwal 

ROLE OF SUPPLY CHAIN IN SUCCESSFUL PROJECT DELIVERY IN INDIAN CONSTRUCTION INDUSTRY 

Krishnan Sampath 

Internalizing International Human Rights on Prisoners in India - An Analytical Study 

Rajasekaran Srinivasan 

INNOVATION OF FRAUD DETERRENCE SYSTEM IN THE ORGANIZATION USING FORENSIC ACCOUNTING AND DATA 

MINING TECHNIQUES 

Pornchai Naruedomkul, Pannipa Rodwanna 

Consolidation of the Nation Building in a multi-ethnic society: The Case Of Mauritius 

Rajen Suntoo

Lifelong Learning: The Challenge in Context of India 

Vijita Singh Aggarwal, GGS, IP University, New Delhi. 

Abstract: Ensuing transitions in todays globalized world 

may seem to marginalise certain population segments or 

exacerbate socio-economic divisions. Lifelong learning in 

this context is seen as part of the solution to these social 

challenges (Anderson, G, E 1996; Giddens, A 1999; 

Rubenson, K 2006). This paper attempts to discuss the 

concept of lifelong learning and its evolution in general, 

along with its interpretation in India. Further the challenges 

for lifelong learning in India‟s context, particularly with 

reference to vocational training and some aspects of 

development such as equity have been discussed. Prominent 

models of lifelong learning have also been evaluated in 

Indian context. 

Introduction: Lifelong Learning, a construct espoused and 

promoted by supranational organisations like UNESCO, 

OECD and the European Union is increasingly being seen as 

a panacea for a broad range of issues confronting modern 

societies. 

„Lifelong learning is the development of human potential 

through a continuously supportive process which simulates 

and empowers individuals to acquire all the knowledge, 

values, skills and understandings they will require 

throughout their lifetimes and to apply them with confidence, 

creativity and enjoyment in all roles, circumstances and 

environments‟. 

(Longworth, N and Davies, W, K 1996:22) 

Lifelong Learning-Evolution of the Concept: A 

government report in Britain in 1919 is seen to be the 

genesis of the idea of lifelong learning: „Adult education…a 

permanent national necessity… and therefore…universal 

and lifelong.‟ (Ministry of Reconstruction 1919: 5). The 

post second world war period however saw further 

development of the concept due to the need for rapid 

retraining of adults who served in the armed forces and the 

key industries (Field, J 1992, 2001). 

The idea subsequently was propounded by inter 

governmental bodies such as United Nations Educational, 

Social and Cultural Organization (UNESCO). UNESCO‟s 

1972 report, „Learning to be‟ started debate on lifelong 

education (Faure 1972). It stressed the „humanistic concerns‟ 

of fulfillment of man through flexible organizations, 

Informal and non-formal learning. The emphasis of the 

report on concerns such as health, cultural and 

environmental education began an „optimistic phase of 

international educational policy and reform‟ (Field, J 2001; 

Knoll, J 1998). The decade of 1990s saw a renewed interest 

in lifelong learning. The Delors report of UNESCO „The 

Treasure Within‟, agreed largely with the earlier „Faure‟ 

report and also laid a strong emphasis on NGO participation. 

It saw the role of UNESCO as „to pay as much heed to 

human development as to purely material progress‟ (Delors 

1996: 187). 

In contrast, Organization for Economic Cooperation and 

Development (OECD) had its focus on a human capital 

orientation. It focused on policy instrumentation designed to 

promote „recurrent education‟ (OECD 1973). In response to 

economic slowdown of 1980s, OECD‟s report „Education 

and Economy in the Changing Society‟ emphasized need for 

„more adequate introduction to jobs, careers, and the world 

of work in schools and familiarization with and command of 

information technologies‟ (OECD 1989: 30). The need for 

rapid and continuous transformation of working life meant 

that adult education and training was central to the policy. 

OECD through the 80s and 90s supported governments in 

achieving „social cohesion‟ (OECD 1989, 1995, 1996, 1998; 

Miller 1997). In OECD meeting on „Lifelong Learning for 

All‟, lifelong learning was taken to be „conscious learning 

throughout the lifespan…through virtually every other form 

of human activity‟ (OECD 1996: 89). With this perspective 

OECD encouraged linkages between informal learning and 

formal education and training (Field, J 2001). 

In 1995 the EU published a „white paper‟, „Teaching and 

Learning: Towards the Learning Society‟, with an objective 

of leading Europe towards knowledge based society for 

economic and social progress. It emphasized on the merits 

of building „active citizenship‟ and building up 

employability. Circa 1996 was „European Year of Lifelong 

Learning‟ which has its origin in a 1993 European Union 

Paper „Growth Competitiveness, Employment‟ (Tuckett, A 

1997). As a result European Union education policy was 

steered so as to realize the aims of Lisbon Declaration and to 

make EU „most competitive and dynamic knowledge based 

economy in the world‟ with more jobs and greater social 

cohesion and marking a European area of lifelong learning 

before 2010 (EC, 2000; EURODICE, 2001). European 

Union policies also express concern for „social exclusion‟ 

e.g. „social exclusion has reached such intolerable 

proportions that the rift between those who have knowledge 

and those who do not has to be narrowed‟ (EC 1996: 49). 

The differences in the concept of lifelong learning as 

propounded by UNESCO with its humanistic inspired 

paradigm and OECD and to some extent EU having 

„economistic‟ paradigm is explained by differences in the 

culture of the organizations. OECD has economy as its basic 

mandate, whereas UNESCO is more rooted in an intellectual, 

moral tradition. 

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Lifelong Learning-A Critique: UNESCO‟s humanistic 

inspired paradigm of lifelong learning is followed by the 

Nordic countries, which have state as a major player. Here 

it is seen to bring in social cohesion and guide learners in a 

more holistic perspective that takes into account a balance 

between a persons work values and life values through its 

tradition of „folkeoplysning‟ (Hansen, T, F 2006). 

In general though, national policies of most of the countries 

are predominantly driven by OECD and EU‟s discourse on 

lifelong learning. This is generally seen to be based on a neo 

liberal value system and „individualistic‟ and „economist‟ in 

approach. It is based on the premise that a general demand 

for a better skilled labour force exists (Rubenson, K 2006). 

Life long learning based on these discourses is increasingly 

being criticized as means for exclusion and control (Field, J 

2006). It is said to legitimize inequality and a more 

individualized society. This is because the already 

privileged enter the labour market with greater cultural and 

material capital. Successful participation in organized 

education and training therefore functions as a mechanism 

for disguising and naturalizing hierarchies (Rowntree 

Reports 1995; Swift, J 1995; Coffield, F 1998; Stauber and 

Walther, 1998). 

In the knowledge based economy, those who have a lowest 

skill set, and are unable to learn in the competitive 

environment are increasingly less likely to find jobs. In his 

article „Let them eat skills‟ Douglas Noble argues that in 

USA and UK „The wages and job security of those still 

employed are steadily eroding, as organized labor has all 

been but destroyed, and most new jobs are in the low-wage, 

temporary, part-time, service sector, requiring minimal skills‟ 

(1994: 22). Further, access to support mechanism like social 

relationships, employers commitment and government 

welfare systems is constantly being weakened ( NACETT 

1996; Jensen W. T. 2006). This situation brings about the 

culture of exclusion that gets passed on to future generations, 

leading to a society of knowledge rich and knowledge poor 

(Field J 2006). The state has put onus of learning on the 

individuals making lifelong learning the latest form of 

social control mechanism powered by „moral 

authoritarianism‟ and enforced by „threats of compulsion‟ 

(Coffield, F 1999). 

The above discussion poses a very important question is 

Lifelong learning leading to development. Thirty years ago 

the poorest 20 % of the world people earned 2.3% of the 

worlds‟ income; in 1996 they earned 1.4%. In that same 

period, the richest 20% had increased their share from 70 % 

to 85% (The Economist 1996: 34). The widening economic 

gap is also experienced across geographical regions. The 

individualistic policies of Lifelong learning have been most 

criticized as „…an underdeveloped vision… a conservative 

and timid acceptance of the necessity to decrease public 

expenditure on social welfare, a pervasive reluctance to 

challenge the views of leading employers, a comparative 

neglect of the role of institutions‟ (Coffield, F 1999: 46). 

This however needs to be juxtaposed with the fact that the 

knowledge economy is leading to growth of highly skilled 

and individualized service industry that needs constant up 

gradation of skills and thus quest for lifelong learning 

(McNair, S 2001). Hence to sum up 

„Lifelong learning is an ambiguous concept: both a causal 

factor in change and a response to social change; a policy 

and a practice; something that can sustain and enrich the 

lives of many and yet undermine and contribute to the 

decline of other societies and break up of families; both 

valuable and threatening and controlling; both societal and 

existential‟ (Jarvis P 2006: 227). 

The problem therefore is not with lifelong learning per se, 

but building adequate, accessible and equitable systems for 

lifelong learning that do not reinforce or perpetuate societal 

inequities. 

Lifelong Learning in India: At the policy level the 

concept of lifelong learning in India has most 

comprehensively found voice in „Hyderabad Statement on 

Adult and Lifelong learning‟. This comprehensive policy 

statement in Indian context envisions that: 

„Lifelong learning is necessary to empower people… The 

context of the changing global economy, the new 

information revolution, imperatives of human development 

including fighting poverty and the importance of promoting 

values and the practice of democracy, justice and tolerance 

define the purpose and content of lifelong learning… 

Learning at all levels should aim to achieve the goals of 

equity, equality, human dignity and gender justice.‟ 

(UNESCO 2002) 

The postulated strategy in Hyderabad statement focuses on 

extensive consultation, information sharing, dialogue and 

participation. The development of a multi sectoral policy 

framework specifying priorities, strategies and institutional 

support is envisaged much like the UNESCO strategy 

(Delors 1996). This statement takes into account some of the 

practical aspects of European Commission‟s and OECD‟s 

position that all measures must be based on the concept of 

developing, generalizing and systematizing lifelong learning 

and continuous training. The strategy should enable a 

periodic and sustaining engagement with the education 

system at all levels in the society with the spread being 

geographic, social, and economic in its context and 

vocational, recreational and developmental in its content 

(CEC, 1995; CERI 1973). The concept of lifelong learning 

in India, as seen from the text of Hyderabad statement seems 

to be oriented towards UNESCO‟s humanistic orientation 

though some elements have an economistic orientation as 

inspired by OECD, or EU documents. The existing ground 

situation in India also indicates a mélange of the approaches. 

To put the concept of lifelong learning in Indian perspective, 

it is noticed that „equity‟ is one of the dominant focus of 

Indian polity and is considered as one of the important 

dimensions of development. „Equality of opportunity‟ is 

mentioned in the preamble of the constitution of India, as a 

fundamental goal informing public policy (Constitution of 

India 1950). It is only natural therefore that concepts of 

„equity‟ and „equality‟ have been highlighted in Hyderabad 

statement. The concern towards equity in India stems from 


the fact that Indian society traditionally is a „command and 

control‟ society. This is evident as India has Power Distance 

Index as the highest „Hofstede‟ dimension for the culture, 

with a ranking of 77 compared to a world average of 56.5. 

This is indicative of inequality of power and hence 

opportunity within the Indian society (Hofstede, G 2003). 

Unequal access to learning opportunities tends to reinforce 

existing divisions in the society as these opportunities tend 

to get monopolized by the entrenched elite and „cycles of 

deprivation‟ are perpetuated (Field, J 2000; Coffield, F 

1982). 

The situation is rendered more complex in India by other 

problems such as five fundamental basis for inequity 

identified by Raza and Aggarwal. These are schedule caste 

and others, schedule tribe and others, males and females, 

rural and urban settlements, and developed and less 

developed regions. These inequities lead to a vicious „cycle 

of underdevelopment‟ with the result that imbalances and 

inequities emerge across regions as well as social groups 

(Raza, M and Aggarwal, Y 1987). This lies at the root of the 

concern that has informed public policy in India. The 

policies of positive discrimination providing better access to 

learning opportunities to underprivileged population groups 

such as scheduled castes and scheduled tribes have 

accordingly been implemented in the form of facilitated 

access to higher, professional and vocational education, as 

well as facilitated access to jobs building motivation to learn 

(Article 16, 46, 335, Constitution of India 1950). Measures 

to promote equity in education also include a wide range of 

other incentives such as mid day meals, free text books, 

scholarships etc. The concern has expanded over the years 

to include other backward classes for positive discrimination. 

(Constitution of India amended, 1978). 

These measures however have not been sufficient to meet 

the objectives of equity and equality as differences across 

community or social groups continue to be substantial 

(Census of India 2001). The trend also reflects in skill 

formation in the country with highly polarized skill 

formation resulting from gross inequalities in access to 

education and training and their relative quality (UIS 2006; 

Green, A 2006). Equity in Indian context therefore has been 

interpreted as „equality of opportunity‟ and is reflective of 

issues of access to education and consequently jobs, 

economic security and social upliftment. A close reading 

reveals a certain mismatch or less than adequate addressal of 

„equality of opportunity‟ as a dimension of development in 

the concept of lifelong learning as espoused by Hyderabad 

statement and prominent policy discourse in India. A 

comprehensive vision of lifelong learning in India will have 

to take into account this and some other fundamental 

challenges. 

A fundamental challenge at individual level for lifelong 

learning in India stems from „dispositional barrier‟ that 

prevent people from accessing lifelong learning (Clayton, 

M, P 2005). This has basis in the theory of „karma’ by 

which people justify their state of affairs as a consequence 

of their previous deeds and accept power distance in the 

society as a cultural norm (Hofstede, G 2003). Such 

structuring of the society is not flexible to lend itself to 

social or professional mobility that could have been a 

motivational mechanism for lifelong learning. Another 

challenge for lifelong learning in Indian context is the 

preparatory task. With an overall literacy rate of just about 

62% and school dropout rate of over 80% between class 1 

and class 12, traditional approaches to the problem are just 

not enough. Exacerbating these task dimensions, the 

overriding problem in India is that of a resource crunch and 

unequal distribution of learning opportunities (UIS 2006). 

As a result formal initial education parcels people into 

different educational life courses that leads to the culture of 

poverty and uneven development (Directorate General of 

Employment and training Report GOI, 1961; Coleman, J, S 

Report 1966). Further importance of non-cognitive skills, 

like motivation and social skills or the importance of work 

experience and training seem to be under emphasized in 

India (Heckman, J, J and Rubinstein, Y 1999; Heckman, J, 

J., Lochner, L and Taber, C 1998; Belanger, P 1994). Noninstitutional 

sources of skill formation also do not seem to 

have received sufficient attention in the Indian context. 

(Ramey, T and Ramey, S, L 2004). 

The key underlying strand in all these problems is that the 

society has uneven access to learning opportunities. The 

national policy discourse has consistently sought to address 

this by building mechanisms aimed to provide „equality of 

opportunity‟ to learning and jobs thus ushering development. 

The vocational training is generally seen as more closely 

linked with such „equality of opportunity‟. This paper 

therefore is an attempt to review the existing mechanism for 

vocational training in India, and its revitalization with the 

perspective of lifelong learning. 

Lifelong Learning and Vocational Training in India: 

Organized vocational training in public sector in India, (as 

distinct from vocational education in schools) was 

formalized in 1961. The enabling Act initially envisaged 

training of trade apprentices but was subsequently amended 

in 1973 and 1986 to include training of graduate and 

diploma engineers as well as vocational stream technicians. 

Two tripartite bodies viz. The Central Apprenticeship 

Council and the National Council for Vocational Training 

advise the federal government on various aspects of 

vocational training (Directorate General of Employment 

and Training 1961;2007). Inspite of government initiatives, 

low coverage, quality and efficiency of Indian vocational 

training and the apprentice system have been matters of 

concern (Mamgain, R ,B and Awasthi, L, C 2001). With a 

mere 5% of the Indian labor force in the age category 

between 20-24 who have obtained vocational training, India 

lags behind the international average for instance, Korea 

96%, Mexico 28% and Botswana 22% (RothBoeck, S and 

Vinita, S 2003; National Knowledge Commission GOI 

2006). The status of vocational training is also perceived 

low making it the last choice of prospective trainees. Hence 

with a poor intellectual capital student base, and outdated 

sylabii and poor quality of training, the employability of the 

trainees is rather poor (World Bank 2002; ILO 2003). This 

negatively impacts „equity‟ and consequently perpetuates 

the „cycle of poverty‟. Employers have also expressed 

concerns with the efficacy of the system. Present 

provisioning of organized training opportunities in India is 


hence far less then the popular demand, the identified needs 

and the quality and technological relevance expected by the 

employers (FICCI 2002). 

Organised training also suffers from „institutional and 

situational barriers to lifelong learning‟ such as uninterested 

employers and urban–rural divide (UNESCO 1991; Clayton, 

M, P 2005; Tan, H and Savchenko, Y 2005). Another major 

drawback related to skill formation in unorganized 

workforce is the lack of benchmarking or certification 

systems, which makes labour market non-transparent and 

exploitative (RothBoeck, S and Vinita, S 2003). Further the 

government initiatives in vocational training do not 

sufficiently take into account the requirement of training in 

the informal sector. Training for workers in this sector has 

largely been provided by NGOs, cooperatives and trade 

unions. The skill transfer has essentially taken place 

through traditional mechanisms such as master craftsman 

relationship and on the job training within the family or 

community systems, outside the formal structures (Mamgain, 

R, B and Awasthi, L, C 2001). This leaves this sector highly 

vulnerable as there are no mechanisms for skill 

standardization or skill set updation. 

Recent reports however indicate recognition of these 

problems in India and consequent shift in policy with the 

government recognizing the need for reforms in 

employment related skills formation and vocational training. 

The prime minister of India observed in his independence 

day address 2006 that 

„We will need to ensure a far greater availability of 

educational opportunities…so that we have not just a literate 

youth but a skilled youth, with skills which can fetch them 

gainful employment…I hear a pressing complaint about an 

imminent shortage of skilled employees…we cannot let this 

be a constraint. We are planning to launch a Mission on 

Vocational Education‟ (Dr. Manmohan Singh 2006). 

This is relevant as the overarching role of public sector in 

vocational training as regards equity of access, setting of 

standards etc. is well recognized (Johanson,R and Adams, A, 

V 2004). The need for Government led initiatives hence is to 

strengthen organized vocational training and streamline, 

facilitate and coordinate involvement of other stakeholders 

in vocational training in both organized and unorganized 

sectors as advocated by the knowledge commission. Such 

initiatives are consistent with government‟s broad strategy 

of building opportunities and facilitating access of 

disadvantaged groups to learning opportunities in India as a 

tool to enhance equity in the society (Knowledge 

Commission GOI 2006). 

Lifelong Learning- Revitalizing Vocational Training: 

Lifelong learning implies the distribution of learning 

opportunities throughout lifetime enabled by a learning 

society. Many models of learning societies have been 

proposed. Between the two extremes of a „market led model‟ 

and a „state led model‟ is the „social partnership model‟ like 

that of Germany. Iniquitous dimensions of a market led 

model are widely reported in the literature (Coffield, F 

1998). Also inefficiencies and inadequacies of a state led 

model have been noted in the Indian context (World Bank 

2002; ILO 2003). Thus a „social partnership‟ model can be 

seen to be more relevant. This model has the potential to 

provide the flexibility, accessibility, and relevance generally 

seen to be missing in traditional state led or market led 

models (Green, A 2000). The argument to actively build 

stakeholder linkages in vocational training to promote equity 

is also stressed by social movements that highlight 

ineffectiveness of the exclusive state responses in social 

interventions (Sapra, C, L 1987). Community based 

initiatives are also important to build an inclusive culture to 

nurture motivation towards learning (Ramachndran, V 2004). 

There is evidence that civil society structures can be 

especially effective for providing the crucial linkages for 

mobilizing communities for training in the unorganized 

sector (Khan, F 2001; Murphy, M 2001; King, E and Ozler, 

B 1998; The World Bank, 1999). 

The need in India therefore is to have cohesive policies 

through social partnerships. Government with its knowledge 

base and economic and political power can define targets, 

allocate funds and provide the supportive infrastructure to 

subsidiary levels (Johanson,R and Adams, A, V 2004). 

Local government (panchayat level) can be empowered 

through decentralization and motivated and trained to 

promote learning societies in their areas. Promotional 

measures could include tax incentives, investment grants for 

new pedagogical technologies and autonomy along with 

accountability for program planning and implementation 

(Longworth, N and Davies, W, K 1996: 18). This is in line 

with the policy of democratic decentralization in India 

(Constitution of India 73 rd amendment 1992). Specific 

measures can be introduced to provide enhanced role to 

women and self help groups like program on „Development 

of Women and Child in Rural Areas‟ (Govt. of Andhra 

Pradesh 1998). This will also require transparent legislation 

to build mechanisms for enabling effective linkages with 

corporate and civil society partners to build awareness, 

ensure relevance of curriculum and facilitating „last-mile‟ 

transition from training to the job (Cox-Edwards, A 2000). 

This is necessary to ensure that vocational training systems 

do not „teach yesterday‟s skills to tomorrow‟s unemployed‟ 

(Colley, H 2007). The assessment mechanisms also need to 

have stakeholder linkages for ensuring effectiveness (Green, 

A 2000). 

Successful examples for such initiatives are the experience 

of Monterrey Institute of Technology in Mexico and 

„Servico Nacional de Aprendizage Industrial‟ in Brazil 

(Dahlman, C and Utz, A 2005; IADB 2005). In the 

unorganized sector a successful program effectively 

utilizing stakeholder linkages is „Underprivileged Children‟s 

Education Program in Bangladesh‟. (World Bank 2001). 

Besides providing relevant skills in an effective manner 

such initiatives also serve to partially address the problem of 

employability of the apprentices after the training is 

completed. Conclusions of a study done for a specific sector 

„Creative and Cultural‟ under European Union project 

„Equal‟ in this regard are interesting. This focuses on 

facilitating access to actual employment of manpower after 

training by providing supplementary inputs so that this „last 

mile‟ can be crossed with the coordinated support of 


stakeholder led partnerships (Guile, D and Okumoto, K 

2007). 

India is taking preliminary steps in the direction to evolve 

such a model. The National Commission of Labor (2003) in 

their „competency based training approach‟ emphasizes the 

continuous industry partnership in developing and 

redefining training modules and setting standards for 

training. National Knowledge Commission Report (2006) on 

vocational training also focuses on strengthening the current 

institutional structure and building alternative delivery 

structures including public private partnerships to expand 

capacity. The report takes into account the requirement of 

training in the unorganized sector and the need for building 

a robust regulatory and accreditation framework. 

All this however will be less than effective if sufficient 

investments are not made to build and sustain demand for 

these initiatives. The demand needs to be built especially 

among marginalized population groups. This is necessary, as 

the social class continues to be the key discriminator in 

determining participation in learning (Jarvis, P 2006). The 

access to information, mechanisms for motivation and 

appropriate guidance is important to enhance reach across 

various divides which enhance inequities (Raza, M and 

Aggarwal, Y 1987). Accordingly appropriate guidance, 

economical and easy access to information and opportunities 

along with incentivisation of vocational training need to be 

ensured to make it worthwhile for the individuals to 

participate in the process (UDACE, 1985; World Bank 

2003). 

Lifelong Learning- Financing Vocational Training: The 

simplest principal for funding any activity is that beneficiary 

should pay. This poses a limitation in India w.r.t. lifelong 

learning as with poor getting excluded, it adversely affects 

the equity. In general though lifelong learning programs, 

particularly for vocational education are funded largely with 

two kinds of components i.e. subsidies and cost sharing. 

Most countries use a variety of instruments that are a 

variation or combination of these principal components 

(OECD 2000b). Government spending however needs to be 

viewed in the context that, those who choose not to 

participate in learning may face enhanced isolation and thus 

will not only erode „equity‟ in the society, but will also have 

economic consequences like underused human capacity and 

increased welfare expenditure. The „pure market‟ may not 

deliver efficient investment in training, in required sections 

and areas, thus leading to long term consequences for equity 

and competitiveness (OECD 1998; NACETT 1996; Field, J 

2006; McNair, S 2001). 

Hence public resources need to be focused primarily on 

building access for the needy and creating options for 

everybody. This underlines the widely recognized need to 

introduce targeted subsidies in the form of scholarships and 

fee discounts to integrate marginalized groups in the 

mainstream (Pillay, 2005). Therefore countries like India 

need to create programs with components of subsidy as well 

as loans. Subsidies in such programs should play a larger 

role for low-income learners, and loans can be relevant for 

higher income and more motivated learners. This is 

supported by evidence as further learning is in a large 

manner undertaken by those who are already well educated 

(DfEE 1995). Knowledge Commission, Govt. of India (2006) 

recommend a system of higher fees with provision for loans, 

payroll cess and other forms of employer funding. In line 

with social partnership model and spirit of 73 rd amendment 

of Indian constitution, financing of such programs however 

should be based on decentralized systems of social 

partnership. Such practices exist in Denmark, Sweden, 

Germany and Finland (Green, A et. al. 2000). 

Some of the innovative and effective examples of vocational 

education funding internationally are based on „social 

partnerships‟ and can be successfully replicated in Indian 

situation. These are „Skills Development Fund‟ of Singapore 

and „Human resource development fund‟ (HRDF) of 

Malaysia. Under these programs employers pay a payroll 

contribution of 1% and are eligible to claim a portion of 

allowable training expenditure up to the limit of their total 

levy for any given year (Tan, H and Gill, I 2000; Pillay, G 

2005; Pillay, G 2005b). Evaluation of international 

experience with payroll levies used to finance vocational 

training indicates that employer‟s buy-in for the scheme 

alongwith administrative efficiency and transparency is 

critical (Canagarajah, S., Dar, A and Murphy, P 2003). 

Lifelong Learning- Monitoring and Coordinating 

Vocational Training: Strategies and programs for 

vocational training with lifelong learning perspective will 

require continuous evaluating, benchmarking and finetuning. 

This is necessary to keep track of marginalized 

groups that tend to reinforce inequalities (Skager, R 1978). 

Stern (2003) summarizes the purpose of evaluation under 

four categories viz. accountability for policy makers, 

development of program improvement, knowledge 

production and explanation and social improvement and 

change. 

Evaluation poses a real difficulty in Indian situation where 

such mechanisms have traditionally been weak. Indicators 

of aggregate nature such as government spending in 

percentage of GDP or percentage of enrolments as a fraction 

of population are not really effective criteria to evaluate 

such training. These are incapable of picking up differences 

among population sub groups. Most such indicators are also 

primarily input focused and miss out on the effectiveness of 

the programs being implemented. They also miss out on 

training situations outside the organized sector that are 

becoming increasingly important in the context of lifelong 

learning (World Bank 2003). 

An effective evaluation system will require among other 

things a system to impart, quantify and validate general 

transferable skills allowing a higher degree of functional 

flexibility and worker mobility. Cross sectional or 

longitudinal enterprise surveys are carried out by several 

national and supranational organizations to monitor training 

outcomes. The larger surveys of such nature are (CVTS) by 

Eurostat, IAB establishment panel in Germany, National 

employer Survey (NES) of US (Second report on vocational 

training research in Europe 2001; OECD 2002). French 

assessment of vocational and experiential training „La 


validation des acquis professionals‟ can also be adopted 

(Defarges, P, M 1996). Some developing countries like 

Chile are making effective use of such assessments (World 

Bank 2003). Similar system adapted to Indian situation can 

be used to monitor, evaluate and fine-tune vocational 

training oriented lifelong learning programs to keep them on 

track. 

„Social Patnership model‟ suggested Lifelong learning 

policies and programs in a federal country like India need to 

be coordinated across a range of stakeholders in the central 

government, state governments and local level. Effective 

linkages also need to be built with Corporate, Non- 

Government, Non Profit and international organizations to 

build synergies, adopt best practices and realize common 

learning goals (World Bank 2000; OECD 2000; OECD 

2001). To ensure such institutional coordination India has 

created its ministry of Human Resource Development like 

several OECD countries. The structures at all levels 

however need to be sensitized and designed with effective 

self correcting mechanisms through coordination with, and 

feedback from various stakeholders. The essence of 

effective coordination lies in empowerment of various levels 

to take locally adapted action and feedback mechanisms to 

ensure that financing, standard setting and monitoring 

mechanisms are sensitive to the local and contemporary 

context (OECD 2001; World Bank Institute 2001). 

Conclusion: The discourses on lifelong learning have been 

different for different supranational agencies. However the 

economic orientation of OECD and EU is reflected in 

national policies of most countries where Lifelong learning 

policies form integral part of social and economic policies. 

The „Hyderabad statement‟ on lifelong learning in India 

reflects the humanistic orientation of UNESCO, though 

some of the visualized policy instrumentation and 

implementation mechanisms have a more „OECD‟ approach. 

To realize the dimension of „equity‟ by providing „equality 

of opportunity‟, Indian government has adopted strategies to 

create access to training for the disadvantaged groups. 

Vocational training in particular has tremendous potential to 

play an important part in providing „equality of opportunity‟ 

through learning opportunities. However much remains to 

be done in the case of India. The need is to build capacity 

and synergize multifarious initiatives building cooperative 

linkages to respond to this challenge. Effective 

implementation will also require continuous reinvention of 

strategies to sustain, deepen and accelerate the fundamental 

transformations in learning processes, and systems (New 

Zealand, Information Technology Advisory Group 1999; 

UNESCO 2002). 

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Working from Home – a Convenience or hindering 

organizations in becoming a community? 

Mani vannan 

School of Management, SRM University, India 

Valliammal M 

Research Scholar, Bhrathiyar University, Asst. Prof. SRM University B-School, Chennai, India 

Abstract 

Today the Information Technology companies the forerunners 

of the concepts of „Tele-commuting‟, „Work from 

Home‟ etc. with increasing number of employees opting for 

working permanently in same manner. This study explores 

the various dimensions of the impact of such a employee 

engagement model on the organization as a community. 

Focus is on employees of a physical organization who opt to 

work away from the physical organization as the term 

“Home based worker‟ may refer to many workers who may 

be part of an organization. 

While the employees of organization are finding such 

remote work arrangements very attractive due to various 

reasons like cost and time required for travel etc., the 

organizations also are finding the arrangements financially 

attractive due to lower cost of facilities, maintenance etc. 

We find that the indirect cost of the impact of such work 

arrangements on the organization culture to be more 

important. There are likely impacts on the organizational 

knowledge management as well. 

Since the concept of virtual organization is more a recent 

import in to the Indian corporate from the United States of 

America, the study also involves the recent research on the 

impact of virtual organization on the organization as a 

community structure. 

Key Words: “Work from Home”, Community structure, 

Knowledge Management 

Introduction 

Many people have long been working from home in India. 

We mean 'work' in the economic sense of being paid for the 

service or production of goods at home. Many cottage 

enterprises still follow the same mould in their day to day 

execution, the corner idly vending woman at her home is an 

immediate example that comes to our mind. 

In the organized employment market also the employee may 

take work home either voluntarily or involuntarily to finish 

off something urgent. This also is an old phenomenon. Until 

the late-1990s the term 'Work from Home' in India is usually 

associated with those workaholics who carried their work to 

home during their holidays or weekends. 

It is only in the last decade the concept began to be 

appreciated as an option for employees mainly in the 

Information Technology (IT) sector. Even now most of the 

other industry professionals do not have the luxury to plan 

such a working day at home, except may be during some 

emergency. It is only since the advent of the Information 

and Tele-Communication revolution we had been seeing 

real time work being done from home by employees i.e. 

using the communication facilities, employees being able to 

work on a common task at the same time from home and a 

physical office. This is being permitted, primarily in the 

Information Technology sector on a temporary basis from 

time to time to allow the worker to overcome some personal 

emergencies like caring for the young etc. The duration 

might be ranging from a few hours to a few weeks. 

However the phenomenon of a pure 'Work from Home 

Employee' is one where the employee is engaged in working 

for the organization on a permanent basis and works only 

out of his/her home with occasional visits to the physical 

office. This work pattern is being hailed as the new 

organization 'The Virtual Organization'. (Olga, SICS). 

Before we go further, let us clarify that the concept of home 

based worker, in its dictionary definition will normally 

include all types of commercial work that gets performed at 

home, including freelancing and cottage industries types of 

work. However for the subject of this article we will go by 

the definition of wikipedia (www.wikipedia.org ) on 

Telecommuting namely 'Telecommuting is a work 

arrangement in which employees enjoy flexibility in 

working location and hours. In other words, the daily 

commute to a central place of work is replaced by 

telecommunication links.' We will be using the 

terminologies of 'Work From Home', 'Work at Home' and 

'Telecommuting' interchangeably and to mean the same 

concept of work arrangement. 

Considering that there are so many variations of flex-work 

options including telecommuting, flexi-schedules, reduced 

working hours, non-traditional work hours, compressed 

work week, job sharing, annualized work hours, results 

oriented work schedules, flex locations and satellite options, 

both employer and employee are probably spoilt for choice. 

Within the same work arrangement also, there are variations 

of the arrangement based on the duration of the arrangement 

namely; Working from Home on a partial basis or on a 

permanent basis. We will consider the employees of 

organization who will be working remotely (from home or 

in any other mode) as the subjects for this study. 


Looking at the organization also we find many dimensions 

of the entity - as a physical entity or as a conceptual entity in 

one plane. The organization also could be thought of as a 

community, a social setting that consists of individuals, 

contributed by the individuals and also contributing back to 

the same individuals as well. 

This study will explore the effects of the permanent work 

arrangement of telecommuting of such employees on the 

organization as a community. As a community evolves in 

terms of culture and shared learning over a period of time, 

so is the expectation from the organization as a community 

as well. This exploratory study, through the research on 

earlier studies on the similar subject will try to understand 

the various types of impacts the phenomenon of 

telecommuting is likely to have on the effectiveness of the 

community concept of organization. 

The study aims at identifying some of the effects identified 

by the previous research so as to focus future studies on the 

same as we go ahead. We also aim to caution the 

management of those companies promoting Working From 

Home on a permanent basis on these effects so as to enable 

them to be forewarned and make contingent measures to 

manage the risks involved. 

Review of Literature: 

The concept of Telecommuting was first implemented in the 

United States of America (again in the IT sector) and the 

word was coined with the experiments on telecommuting 

(The Telecommunications-Transportation Tradeoff by Jack 

Niles et al., 1976). The concept then took wings to other 

countries including the European countries, focused still in 

the IT sector. Hence our study is also influenced by the 

numerous studies already conducted in this sphere at the 

United States of America as well. 

Remember organizational culture, and the idea of 

building strong cultures to achieve competitive advantage 

(e.g., Kotter and Heskett, 1992; O‟Reilly, 1989)? Remember 

Theory Z and William Ouchi‟s (1981) argument that 

description of possible organizing arrangements was 

incomplete? Ouchi maintained that in addition to achieving 

coordination and control through market-like mechanisms 

such as prices and contracts on the one hand, and hierarchies 

or bureaucracies on the other, there was yet another way of 

organizing and managing employees, and that was through 

clan-like relationships among people (e.g., Ouchi and Jaeger, 

1978), characterized by high levels of trust and stability. 

Gittell‟s (2003) description of Southwest Airlines is 

consistent with the idea of achieving coordinating through 

interpersonal trust and mutual adjustment of behavior 

(Thompson, 1967). Gittell argued that Southwest‟s 

extraordinary level of productivity and performance has 

come through high levels of coordination and control 

achieved through interpersonal relationships rather than 

simply relying on either formal mechanisms or incentives. 

Remember Japanese management, with its emphasis on 

the total inclusion of people in the company and long-term, 

even lifetime, employment, and the corollary idea that 

employees were important stakeholders in enterprises with 

claims equivalent in their importance to those of 

shareholders (e.g., Aoki, 1988)? 

These ideas and management practices associated with 

their implementation seem to have fallen by the wayside, at 

least in most IT organizations if they were to engage people 

in a remote working fashion. As Cappelli (1999) has nicely 

shown, instead of building closer, more communal-like 

relationships with their workforce, over the past couple of 

decades most organizations practicing a major part of work 

force not physically together have moved systematically to 

more market-like, distant, and transactional relationships 

with their people. 

The absence of much sense of community in most 

organizations is quite real and quite important for 

understanding the evolution of work in IT organizations, the 

relationship between organizations and their people, and the 

attitudes and beliefs of the workforce. 

One consequence of the trend away from 

communal relationships toward more arms-length, marketlike 

transactions between organizations and their employees 

has been less trust and psychological attachment between 

employees and their employers. The evidence about job 

dissatisfaction, distrust, and disengagement is pervasive, as 

many surveys and studies from a number of industrialized 

countries tell the same tale: job satisfaction, employee 

engagement, and trust in management are all low and 

declining. One survey by The Discovery Group reported that 

52 percent of employees don‟t believe the information they 

receive from senior management (Katcher, 2004). A survey 

of the U.S. workforce found that one in six workers said 

they have withheld a suggestion about improving work 

efficiency, and fewer than 40% trust their company to keep 

its promises (Princeton Survey Research Associates, 1994). 

A 2003 survey by Korn Ferry found that 62% of global 

executives are unhappy with their current position of 

employment (Korn Ferry, 2003). A Conference Board 

survey of 5,000 U.S. households conducted in August, 2004, 

found that 67% of workers do not identify with or feel 

motivated to drive their employer‟s business goals, one 

quarter are just showing up to collect a pay check, and 

almost half feel disconnected from their employers 

(Conference Board, 2005). 

Nor is this phenomenon confined to the United States. 

For instance, the Gallup organization “found that 80 percent 

of British workers lack commitment to their job, with a 

quarter of those being „actively disengaged‟” (Deloitte 

Research, 2004:4). 

Virtual Organizations in India: 

India is no stranger to flex-jobs. Such jobs have been in 

vogue since the late nineties. Today, Leading companies in 

software, outsourcing, finance, retail, banking, marketing, 

manufacturing, education, media and almost every other 

major business field offer some form of flexibility. Most 

even have an array of options you can choose from. 

In the corporate India the following companies have 

formulated their 'Work From Home' policies and have thus 

embarked on the journey towards becoming a virtual 

organisation (Express Computer, March 24, 2008). 


Among the Multi-national companies the prominent ones 

are: 

1. IBM India Private Ltd. 

2. Accenture Services Private Ltd. 

3. Cisco India Private Ltd. 

4. Unisys India Private Ltd. 

5. KPMG India 

6. Genpact India Private Ltd. (Formerly GE Financial 

Services) 

And some of the Indian companies are: 

1. Aan Informatics Private Ltd. 

2. Sai BPO Services Ltd. 

3. Datamatics Technologies 

Most views expressed by the company spokesmen had been 

on the technical challenges of telecommuting rather than on 

the effect on organization culture. There seem to be no 

concern yet on the loss of trust in such a work culture. 

We thought of using the following list to measure the extent 

of effect of work from home on the organization culture on a 

qualitative basis. 

Helping employees in need 

Formal/informal face to face groupings for informal 

knowledge sharing 

Employee Benefits and Assistance 

Recreational facilities or health club membership 

Company Sponsored Social Events 

Games and sports teams and leagues 

Celebrations of accomplishments and milestones 

Presence of informal teams and clans 

Peer networks 

Conclusion and recommendations: 

The fore mentioned research works show that encouraging 

workers to work alone and away from the work group by 

allowing them to work from home is likely to impact the 

organizational culture of sharing and trust building. The 

erosion of trust is likely to reduce employee contribution to 

organization also in the long run. 

Here are some of the issues that the employer should 

consider before implementing any flex work program. 

● What are the benefits of implementing a flex-work 

program? 

● Does the arrangement support the organization’s 

key goals such as productivity, cost effectiveness and timely 

delivery? 

● Is the job flex-friendly? 

● Does the company have the infrastructure and 

technology needed to successfully deploy flex–work 

arrangements? 

● Is the individual's work style and history 

compatible with the requirements and demands of flexwork? 

● Is there a valid process to measure and establish 

results, accountability and productivity? 

● How will the organization take care of the training 

and development needs of flex-workers? 

● What levels of communication and feedback need 

to be established to ensure optimum performance of flexworkers? 

● Can the company revert back to its normal style of 

working with minimal expenditure and disturbance in the 

event the flex-program does not take off as expected? 

Employees need to consider the following aspects: 

● Is your work style and job suited for flexibility? 

● Are the sacrifices you have to make worth the 

benefits you receive? Remember, people who opt for flex 

jobs usually receive lower pay and little benefits, lose out on 

in-house training and are often passed over for promotion 

and development opportunities. 

● Is job security guaranteed? 

● How are you going to keep your training and skills 

updated? 

● Will you be able to integrate into the mainstream 

later? 

Both employer and employee should have complete 

understanding of the terms, conditions and demands of the 

flex-work arrangements before jumping into the fray. And 

these aspects have to be properly documented for the benefit 

of all concerned. 

A pilot plan involving a small sample from the workforce 

will enable the organization to test the suitability of the plan, 

which can then be implemented in phases or in one go. 

We recommend that instead of adopting the pattern of 'Work 

from Home' in the current form which majorly fulfils only 

the employee to work at his/her convenience, try to 

incorporate some amount of social interaction also in the 

policy. This may mean some amount of face to face contacts 

by limited travel. Organizations also can explore using 

technology tools to have remote social networking like the 

Facebook, Twitter and Video messaging etc. 

References 

[1]Aoki, Masahiko (1988). Information, Incentives, and 

Bargaining in the Japanese Economy. Cambridge, U.K.: 

Cambridge University Press. 

[2]Cappelli, Peter, and Anne Crocker-Hefter (1996). 

Distinctive Human Resources Are Firms‟ Core 

Competencies, Organizational Dynamics, 24 (Winter), 7-22. 

[3]Conference Board (2005). U.S. Job Satisfaction Keeps 

Falling, The Conference Board Reports Today. New York: 

Conference Board News Release, February 28, 2005. 

[4]Deloitte Research (2004) Do you know where your talent 

is?, NewYork Deloitte Research, 2004. 

[5]Express Computer, (March 24, 2008), 

Telecommuting;The way forward? 

[6]Bruce Katcher (2004). How to Improve Employee Trust 

in Management. Hr.com, 

[7]Gittell, Jody Hoffer (2003). The Southwest Airlines Way: 

Using the Power of Relationships to Achieve High 

Performance. New York: McGraw-Hill. 

[8]Korn Ferry International (2003). 62% of Global 

Executives Dissatisfied with Current Positions. Korn Ferry 

website, Press Releases, September 30, 2003. 

[9]Kotter, John P., and James L. Heskett, (1992).Corporate 

Culture and Performance. New York: Free Press. 


[10]Nilles,Jack M.(1974), The Telecommunications- 

Transportation Tradeoff: Options for Tomorrow, John Wiley 

and Sons, New York. 

]11]Olga Cerrato (2005), Trust frameworks in Virtual 

Organisations, SICS, Royal Institute of 

Technology/Stockholm‟s University. 

[12]O‟Reilly, Charles A. (1989). Corporations, Culture, and 

Commitment: Motivation and Social Control in 

Organizations. California Management Review, 31, 9-25. 

[13]O‟Reilly, Charles A., III, and Jeffrey Pfeffer (2000). 

Hidden Value: How Great Companies Achieve 

Extraordinary Results with Ordinary People. Boston: 

Harvard Business School Press. 

[14]Ouchi, William G. (1981). Theory Z: How American 

Business Can Meet the Japanese Challenge. Reading, MA: 

Addison-Wesley. 

[15]Ouchi, William G., and Alfred M. Jaeger (1978). Type 

Z Organizations: Stability in the Midst of Mobility, 

Academy of Management Review, 3, 305-314. 

[16]Princeton Survey Research Associates (1994). Worker 

Representation and Participation Survey: Report on the 

Findings. Princeton, NJ: Princeton Survey Research 

Associates. 

[17]Thompson, James D. (1967) Organizations in Action, 

New york mcGraw-Hill. 

*** 


Organizational Growth can be catapulted vertically 

through Human Resource Training – A perspective 

Paromita Mukherjee Ojha, Anil Neerukonda Institute of Technology and Science, 

Sangivalasa, Visakhapatnam, INDIA 

Abstract 

The competitive world of modern business has inspired the 

corporate world to continuously review their beliefs and 

policies towards the human resources who contribute 

significantly towards the survival and growth of 

organizations. The business houses that are progressive have 

started treating employees as a boon and not a bane. They 

are taking steps to identify, channelize and develop the 

potential of their human resource. They have realized that 

development of business is not possible without 

development of its employees. Human Resource 

Development is a process by which the employees of an 

organization are helped in a continuous and planned way in 

order to : 1) acquire or sharpen capabilities required to 

perform various functions related to their present and 

expected future roles 2) to help identify and utilize the inner 

potential of the employees for their personal as well as 

organizational development 3) develop an overall culture in 

the workplace where there are strong ties between the 

superior-subordinate and members of a team. 

OBJECTIVE OF THE STUDY 

Human resource development helps employees of an 

organization to acquire the requisite competencies to 

perform well and help in organizational growth also. A 

progressive organization needs to have a congenial HRD 

climate wherein: 

• The employees are given freedom to express their 

ideas 

• Team spirit is encouraged 

• Mutual Trust 

• Action should follow words 

• Risk taking by employees is encouraged and some 

degree of autonomy is given to employees for 

taking decisions. 

• Issues are confronted so as to resolve them rather 

than pushing them under the carpet. 

RESEARCH PROBLEM 

Human Resource is the most important resource. An 

organization needs to develop human resources to align with 

the organizational need, culture, technological and ethical 

standards. Training is the most important tool to convert 

staff into human resources. This study is an effort to find out 

the efficacy of training to fulfill organizational need and 

objective. 

RESEARCH METHODOLOGY 

An Exploratory Research Methodology has been adopted. It 

has been done on the data collected from indirect sources 

and company profiles. A few in authorities have also been 

interviewed by the researchers. It began with the literature 

survey quoted as references. We have analyzed few selected 

training programmes at Sundaram Fasteners, State Bank of 

India, Steel Authority of India, Bharat Heavy Electrical and 

Experience survey has been conducted. 

On the basis of the insight gained thus, an analysis of 

Training effectiveness has been conducted on the Focus 

Group- Vishakhapatnam Steel Plant. (RINL/VSP) A total 

number of 92 employees were administered questionnaires 

to find out the efficacy of training, need, and method or 

orientation gap from trainers as well as from the trainees 

point of views. 

RESEARCH DESIGN: Graphical representation and 

percentage analysis. 

KEY WORDS: training, manpower, efficacy, need analysis 

INTRODUCTION 

With the growth of technology leading to complex 

organizational processes and huge size of the organizations 

training helps employees to learn better ways to do their job, 

with continuous up gradation of skill training helps to retain 

and build employee morale, confidence and satisfaction 

level. The employees build better inter-personal relations 

with their colleagues in the organization. Once the 

employees are trained, they need not be continuously 

monitored so the managers/supervisors get time to look after 

other aspects of the organization. Trained people can tide 

over any future changes in the demand of the organizational 

products. The empowered employees would be able to take 

critical decisions to meet the need of the hour. Regular up 

gradation of skill of the employees is a must for any 

organization seeking to progress in today’s demand oriented 

dynamic business world. Training helps in developing 

multi-tasking ability of employees as in today’s competitive 

world it is not enough to be proficient in a particular area, 

the employees need to adapt to new methods of technologies 

and work methods. 


THE EVOLUTION OF HUMAN RESOURCE 

DEVELOPMENT 

Only after the 1980s, Human Resource Development has 

become an accepted phenomenon across the world. Earlier 

there existed only the apprenticeship training programs. 

These apprenticeship training programs date back to the 

18th century. Basically, apprenticeship training served as a 

technical school, which helped the employees to tune the 

intricacies of the skills that they have already learnt. 

Then, in the early 1800s, there were vocational education 

programs that would help the unskilled employees learn the 

techniques of doing a job of good quality. This concept gave 

room for ‘early factory schools’ after the industrial 

revolution. These are training programs that are tailor-made 

to do a particular job in a particular industry. 

One of the by-products of the factory system was the 

frequent abuse of the unskilled workers. The appalling 

conditions spurred a national anti-factory campaign. Led by 

Mary Parker Follett and Lillian Gilbreth, the campaign gave 

rise to the ‘human relations movement’ advocating more 

humane working conditions. With the outbreak of the 

Second World War the industrial sector once again asked to 

retool its factories to support the war effort. Slowly there 

was a need for formal education in HRD; hence universities 

and colleges started delivering a course in training and 

development. 

In 1970s, the training professionals felt that there was a need 

to extend the training function beyond the classroom. The 

employees’ involvement in organizational goal setting 

processes and strategy formulation processes was slowly 

increasing. Organizations started considering human 

resource as a great asset. In 1980s and 1990s several 

organizations and government started conducting seminars 

and conferences on human resource development. 

Organizations started believing that human resource 

development would be a valuable means to achieve the 

organizational objectives. 

In the 21st century, with the advent of IT and ITES 

industries, the need for human resource development is 

being largely felt by many organizations. Today, 

irrespective of the size of the companies, the organizational 

members are focusing more on the training and development 

not only in the classroom but also beyond it. 

In India, in the late 1990s and the early 21st century saw an 

increase in the HRD activities almost in all the organizations. 

The top management of many companies started showing 

commitment and interest in the development of their human 

resource. Some companies have transparent and explicit 

corporate policies towards the human resource development. 

Some of the early Indian establishers of a human resource 

development department in their organizations are 

Crompton Greaves, Steel Authority of India, BHEL, Larson 

and Tubro and others. 

IMPORTANCE OF TRAINING 

There is nothing that training cannot do; nothing is above its 

reach; it can turn bad morals to good, it can destroy bad 

principles and create good ones, it can lift men to angel 

ship- Mark Twain 

Training refers to a planned effort by a company to 

facilitate employees’ learning of job-related competencies. 

The goal of training is for employees to master the 

knowledge, skill, and behaviours emphasized in training 

programs, and apply them to their day-to-day activities. 

As we have already noted that human capital is 

now regarded as one of the major drivers of productivity, 

economic growth and competitive advantage. The 

organizations thus now have set up individual training cells 

within the organizations to generate a skilled, adaptable, 

motivated and resilient workforce. A trained employee can 

retain customers, increase business and the organization’s 

market share by displaying appropriate behaviour and 

inculcating good public relations. So organizations invest 

huge capital in training and development of employees as an 

investment in training and development is a sure shot way to 

retain existing customers and develop new ones based on the 

good performance of the trained employees. 

Training needs of the employees are determined on 

the basis of their performance in the preceding year and that 

of the next year, it also based on the performance appraisal 

exercises along with implantation of modern technologies 

that would require imparting special training to develop the 

requisite skill 

The Training Cycle 

TYPE OF TRAINING: 

a) On-the-job training is classified under the following 

heads: 

• Experience- learning that takes place through 

working on the systems and gaining experience. 

• Coaching- is imparted by a superior staff who 

guides, trains and monitors the performance of employee. 

• Understudy- the new employee buddies up with an 

experienced employee and watches the work method of the 

experienced worker 

• Position rotation- an employee is rotated from one 

position to another so that he/she learns knowledge about 

the entire process. 

• Apprenticeship- is provided by the organisations or 

by the government agencies. 

b) Off-the-job training is classified under the following 

heads: 

• Courses and Lectures- employees may undertake 

courses and attend lectures in the organization itself, or they 

may be sent to universities, institutions that have a tie-up 

with the organization. 

• Brainstorming and case studies- induces creative 

thinking in the employees. A well written case and the 

ensuing discussion by the participants can help in assessing 

the attitude, experience and style of functioning of the 

employees. 

• Role-play- the trainees are given a particular 

situation to enact based on their judgement of the situation 

and how they would handle it. The actions and behaviour of 

the trainees during the role-play is observed and feedback is 

then given by the trainer. 

• Simulation- a prototype of the work area is created 

in the training room and employees are given task to 

perform similar to the one they would need to handle later 

on in their day to day jobs. 


THE FUNDAMENTAL GUIDELINES OF A TRAINING 

PROGRAMME ARE: 

Training programme should always be designed after careful 

consideration of the goals and needs of the organization; it 

should be aligned with the objectives of the organization. 

Proper evaluation should be conducted on the employees 

before they undergo the training so that their progress can be 

checked after they complete the training. The training 

should have utility for the entire organization. The 

programme should be well organized, dynamic, should be 

flexible enough to be modified based on the learning 

abilities of individual employees in order to motivate them 

to learn. The training programme should include both theory 

and practical methods to incorporate the requisite skills and 

should be conducted by a well-trained experienced trainer. 

After the training is completed it is important to evaluate the 

usefulness of the training programme. 

Technology is having a major impact on the 

delivery of training programs. Organizations like Merrill 

Lynch is using e-learning for its financial consultants and 

planners because of its potential learning and accessibility 

advantages over traditional classroom training. Technology 

is changing learning and training in corporate settings as it 

has made it possible to reduce the costs associated with 

delivering training, increase the effectiveness of the learning 

environment and help training contribute to business goals. 

The new technologies that are now used in training include 

multimedia, distance learning, expert systems, electronic 

support systems and training software applications. 

IMPLEMENTATION OF TRAINING IN VARIOUS 

ORGANIZATIONS TO IMPROVE HUMAN RESOURCE 

Industry and government in the United States spend 

approximately $90 billion each year on employee training 

and education. Average Japanese companies spend about 

6% of budget on training. Study of major automobile 

manufactures found U. S automakers spend about 40 hours 

training new employees compared to 300 hours for Japanese 

automakers. In India, the importance of training has been 

recognized by Banking Sector and so now Banks have 

developed institutional training system where ‘on the job 

training’ is provided in a more comprehensive manner. 

Banks have established training colleges. Banks are also 

conducting correspondence courses with arrangement of 

tutorials at the Branch Level by tying up with the Branch 

Manager. 

In State Bank of India, training has facilitated in 

bringing in change, effectively handle employee issues, 

anxieties and fear, provide valuable feedback on 

organizational climate, improve employee’ problem solving 

and coping capabilities, building the right perspectives, 

promoting and building human competencies and enabling 

people to be more creative. 

In Sundaram Fasteners, systematic identification of training 

needs is done through performance appraisal. As per the 

requirement an annual training plan is prepared. Once the 

plan is implemented, a follow-up system is evolved that the 

training is imparted as per the plan. 

In Bharat Heavy Electricals Limited (BHEL), one of the 

largest engineering enterprises in India, the main training 

activities that are conducted are: 

• Induction training 

• Artisans retraining and development 

• Supervisory development 

• Management development programmes 

• Quality Training 

• Vocational Training to Engineering/MBA students. 

SAIL has set up a network of training institutes in the major 

plants to meet the requirements of technology training and 

the training of the skilled, supervisory and middlemanagement 

levels. The main area where the training 

support is concentrated is a) attitudinal change b) utilization 

of manpower c) modernization and expansion d) efficiency 

enhancement e) orientation of new entrants. 

Visakhapatnam Steel Plant (RINL) the training and 

development team gives adequate thrust & focuses to meet 

the organizational challenges & goals by developing 

company's human resources as well as systems & structures 

in HR area commensurate with the organizational priorities 

and futuristic needs. Training is imparted to generate 

conducive attitude, work atmosphere and mindset among the 

employees to realize their full potential. The HRD group in 

RINL/VSP is alive to the expectations of all the stake 

holders- customers, employees and of the company and is 

ever ready to help the employees put in their best in the 

coming days, where excellence would be the driving factor 

to retain its position in the competitive market. In order to 

find out the implications of the training program in 

RINL/VSP a survey was conducted by meeting 92 

employees in different departments. The respondents were 

identified on a random basis in each department at all levels. 

The survey was conducted by using the random sampling 

method. The quantitative data was designed with forced 

choices of 4 scale method i.e. 0-5 level like: Not all True, 

Rarely True, Sometimes True, Mostly True, Almost always 

True. 

1. The Top Management believes that the human 

resource is an important resource and needs to be treated 

more humanely. 

Answer:- Not all True; Rarely True; Sometimes True; 

Mostly True; Almost Always True. 

CATEGORY EMPLOYEES 

Not all True 0.2% 

Rarely True 0.4% 

Sometimes True 1.3% 

Mostly True 62.1% 

Almost Always True 36% 

Interpretation:- 

From the above diagram, 36% employees think that top 

management does always treat employees more humanely 

and gives them opportunity to develop their skills & 

efficiency, 62.1% employees say that top management 

mostly treat them with courtesy and respect & rest 1.3% are 

on an average. All the employees are totally satisfied with 


the treatment meted out by the top management towards 

employees. 

2. The Management ensures that the staffs have the 

training they require and employees show definite 

improvement post-training. 

Answer:- Not all True; Rarely True; Sometimes True; 

Mostly True; Almost Always True. 

CATEGORY 

EMPLOYEES 

Not all True 1.7% 

Rarely True 1.1% 

Sometimes True 2.7% 

Mostly True 49.5% 

Almost Always True 45% 

Interpretation:- 

From the above survey, out of 92 employees 45% think that 

Management always ensures that staff get relevant training. 

49.5% employees think that generally adequate care is taken 

to provide staff with all the necessary training and 2.7% are 

on an average. 

References: 

1.Balakrishnan, Lalitha and Srividhya, S. (2007). Human 

Resource Development. Mumbai: Himalaya Publishing 

House Pvt.Ltd. 

2. Nair, R.R.R. (2008). Alternative Approaches and 

Strategies of Human Resource Development. Jaipur: Rawat 

Publications. 

3. Sheikh, A M. (2003). Human Resource Development and 

Management. New Delhi: S. Chand & Company Ltd. 

4. SubbaRao, P. (2008). Essentials of Human Resource 

Management and Industrial Relations. Mumbai: Himalaya 

Publishing House Pvt. Ltd 

*** 

If we co-relate these two aspects of responses from 

VSP/RINL, we get the following: 

Table -03 

Sl No Category Employees needing more 

humane treatment% Improvements after the training 

% wise. Variations % Remarks 

1. Not all True 0.2 1.7 1.5 

Positive 

2. Rarely True 0.4 1.1 0.7 

Positive 

3. Sometimes True 1.3 2.7 1.4 

Positive 

4. Mostly True 62.1 49.5 12.6 

Negative 

5. Almost always True 36.0 45.0 9.0 

Positive 

Total 100% 100% +4 & -1. 

CONCLUSION 

In the light of the above, organizations need to concentrate 

more on implementing new training methods in order to 

develop their staff to the fullest. The only negative input in 

the category 4, negates all positives found in all other 

category. It is suggested that the training methodology 

should therefore be improvised more to make it more 

interactive to make the trainees participate in the goal – 

orientation, future projections, and cultural ethos of the 

organization. When the aim and ambition of individual 

employees get attuned to the organizational goal, the entire 

organization benefits. It is therefore imperative to identify 

the training need regularly and skill gaps to make the 

training more effective to optimize the skill- set of the 

organization. 


The Anatomy of Indian Rural Market 

Supriya Jha, India 

Abstract 

The Indian established Industries have the advantages, 

which MNC don‘t enjoy in this regard .The strong Indian 

brands have strong brand equity , consumer demand-pull 

and efficient and dedicated dealer network which have been 

created over a period of time. The rural market has a grip of 

strong country shops, which affect the sale of various 

products in rural market. The companies are trying to trigger 

growth in rural areas. They are identifying the fact that rural 

people are now in the better position with disposable income. 

The low rate finance availability has also increased the 

affordability of purchasing the costly products by the rural 

people. Marketer should understand the price sensitivity of a 

consumer in a rural area. This paper therefore is an attempt 

to understand the rural market. 

Key Words: poverty line, rural potential, social 

indicators, challenges, solution 

Introduction 

―India‘s way is not Europe‘s. India is not Calcutta and 

Bombay. India lives 

in her seven hundred thousand 

villages.‖....................Mahatma Gandhi, 1926 

The rural population in India accounts for around 627 

million, which is exactly 74.3 percent of the total population. 

Of this, 90% were concentrated in villages with population 

less than 2000. The rural India is home to 715 million or 12 

percent of the world‘s population. This segment, commonly 

referred to as the ‗bottom of pyramid‘, presents a huge 

opportunity for companies. 

According to a study conducted in 2001 by the National 

Council for Applied Economic Research (NCAER), there 

were as many ―middle income and above‖ households in 

rural areas as there were in urban areas. There was almost 

twice as many ―lower income household‖ in rural areas as in 

urban areas. There were 2.3 million ―highest income‖ 

households in urban areas as against 1.6 million in rural 

areas. The Union Budget for 2010-11 has hiked the 

allocation under the National Rural Employment Guarantee 

Act (NREGA) to US$ 8.71 billion in 2010-11, giving a 

boost to the rural economy. Gone were the days when a 

rural consumer had to go to a nearby town or city to buy a 

branded product. The growing power of the rural consumer 

was forcing big companies to flock to rural markets. At the 

same time, they also threw up major challenges for 

marketers. Nirma's success demonstrated that rural India did 

have the money and willingness to buy packaged goods. 

Some of the important features or characteristics of Rural 

Marketing in India Economy are: 

•With the initiation of various rural development programs 

there have been an upsurge of employment opportunities for 

the rural poor. One of the biggest cause behind the steady 

growth of rural market is that it is not exploited and also yet 

to be explored. 

•The rural market in India is vast and scattered and offers a 

plethora of opportunities in comparison to the urban sector. 

It covers the maximum population and regions and thereby, 

the maximum number of consumers. 

•The social status of the rural regions is precarious as the 

income level and literacy is extremely low along with the 

range of traditional values and superstitious beliefs that have 

always been a major impediment in the progression of this 

sector. 

•The step taken by the Government of India to initiate 

proper irrigation, infrastructural developments, prevention 

of flood, grants for fertilizers, and various schemes to cut 

down the poverty line have improved the condition of the 

rural masses. 

We can see that, there is hardly any Gap between Rural & 

Urban India in terms of the Rich. There are over one lakh 

villages with 2,000 population, while there are only 2,300 

towns with 20,000 or more population. 

Rural marketing in Indian economy can be classified under 

two broad categories. These are: 

• The market for consumer goods that comprise of of 

both durable and non- durable goods. 

• The market for agricultural inputs that include 

fertilizers, pesticides, seeds, and so on. 

Some Impressive facts about the Rural Sector, 

• In the year 2001-2002, LIC sold 55% of its policy 

in rural area. 

• Of 2 million mobile connections, 50% are in 

small/towns and villages. 

• Of the six lakh villages, 5.22 lakh have a Village 

Public Telephone (VPT) 

• 41 million Kisan Credit Cards issued ( against 22 

million credit plus debit cards in urban) with cumulative 

credit of 977 billion resulting in tremendous liquidity. 

What is changing in the rural market 

1.Infrastructure 

2.Disposable Income 

3.Media penetration 

4.Aspiration 

As part of its financial inclusion programme, Syndicate 

Bank has opened 24 new branches in the villages allotted in 

24 days. The bank has been given a target of 1,620 villages 

by March 2012 and 3,270 villages by March 2013. 

Climbing Social Indicators- 

Between 1981 to 2001- 


1.Number of pucca houses doubled from 22% to 41% and 

kuccha house halved (41% to 23%) 

2.Percentage of BPL families declined from 46% to 27%. 

3.Rural literacy level has improved from 36% to 59%. 

4.Infrastructure improving rapidly. 

5.In 50 years 40% roads were connected by road, in next 10 

years another 30%. 

6.More than 90% villages have been electrified, though only 

40% of home connection has got electric connection. 

7.Rural telephone density has gone up by 300% in the last 

10 years, every 1000+ population is connected by STD. 

The Challenges 

Electricity Shortage – Sporadic Power Supply 

• Acute Water Shortage. 

• Poor Transportation availability. 

• Consumer Finance Options 

• Can we make energy saving products?? 

• Can we give him a washing machine which 

consumes less water?? 

• Can we give him access to buying products nearby 

his location?? 

Solution 

• Set up of a Life style Research Team this would analyze 

the needs & preferences of the consumer, in depth. 

• Understand at length his comfort levels in terms of what he 

wants and what he would spend for what he wants. 

• Make products and service available for him to suit his 

needs & Preferences.. 

• Have a deep pocket network to make products available 

for him at a close proximity from where he can buy. 

The approach of the marketer should be, 

• Regional Marketing Approach 

• Deep Channel Penetration 

• Sophisticated & Deep After sales Service 

• Rural Centric Marketing Promotions 

What the company can do - 

i) Management trainees may begin their career with the 

company by spending a month or two in a rural village. 

Senior managers should emphasize the importance of rural 

markets. 

ii) Low priced products can be more successful in rural 

markets because the low purchasing, purchasing powers in 

rural markets. 

(iii) Rural consumers have mostly homogeneous group with 

similar needs, economic conditions and problems. 

(iv) They can use the following promotional methods: 

1. Personal Interface-One on One contact programs are 

extremely efficient manner to reach the Rural Consumer. It 

Provides an opportunity to Demonstrate, Induce Trial and 

Educate. Companies can Use Culture to touch the chord. 

Haats can be used make a Presence in the Market, because 

in India there are 42000 rural haats (supermarkets) 4500+ 

Visitors per haat. Average Sales per day US$ 5000 , 300+ 

Sales outlets/haat. 

2. Innovations- Various innovations in the marketing mix 

had been introduced, with the requirements of the rural 

markets in mind. There are several examples of companies 

that have generated wealth for the poor and profits for 

themselves by focusing on underserved rural markets Mass 

media reached only 57% of the rural population. HLL 

realized that it had to use unconventional media to enhance 

awareness. The companies are trying to trigger growth in 

rural areas. They are identifying the fact that rural people are 

now in the better position with disposable income. The low 

rate finance availability has also increased the affordability 

of purchasing the costly products by the rural people. 

Marketer should understand the price sensitivity of a 

consumer in a rural area. The small sachet packs are the 

examples of price sensitivity. Colgate has done this 

experiment with launching of sachet packs for rural markets. 

The FMCG industry is set to grow 20-30 per cent in 2009- 

10, up from 10-20 per cent in 2008-09. The growth would 

be driven by the launch of new products and increasing rural 

consumption, according to industry experts. 

We can take the example of some of the initiatives taken by 

companies for rural marketing. 

1.Nokia has sent two dozen vans staffed with sales 

representatives on continuous six-month treks through 

India's countryside. The sales reps don't take orders and they 

don't sell phones; instead, their task is to explain why 

anyone in a small farming community would want a mobile 

phone in the first place and a Nokia in particular. 

2.HDFC tied up with non-governmental organizations and 

offered reasonably-priced policies in the nature of group 

insurance covers. 

3.Coca-Cola, has evolved a hub and spoke distribution 

model to reach the villages. To ensure full loads, the 

company depot supplies, twice a week, large distributors 

which who act as hubs. These distributors appoint and 

supply, once a week, smaller distributors in adjoining areas. 

Because of the lack of electricity and refrigerators in the 

rural areas, Coca- Cola provides low-cost ice boxes — a tin 

box for new outlets and thermocol box for seasonal outlets. 

4. LG found the untapped potential in the rural market in 

India and to encash the opportunity it comes with rural 

marketing strategy. 1998, LG launched its first low priced 

TV for rural consumers.For example; Sampoorna- Rs.3000 

and Cineplus- RS 4900 

5. Hindustan Levers‘ Project Shakti fetches 10 percent of its 

total sales from rural markets. 

6. ITC‘s Choupal Sagar records an average footfalls of 

1,200 a day and nets Rs 2 lakh; the company will be 

launching 50 such rural malls by the end of the next fiscal; it 

stacks almost all the leading durables and non-durables 

brands. 

7. Industrial conglomerates such as the Tatas, the Mahindras, 

the Godrejs, DCM Shriram group, EID Parry, oil majors 

Indian Oil and Bharat Petroleum, and bankers like ICICI 

and SBI are making a beeline towards the hinterlands. What 

makes them rush to rural markets is the fact that almost all 

of them have been facing saturation in the celebrated urban 

markets since the opening up of the economy in 1991, and 

especially during the past five years due to stiff competition 

and brand proliferation. 

8. HUL‘s Project Shakti; DCM Shriram‘s Hariyali Kisaan 

Bazaar; Godrej‘s Aadhaar Stores; Mahindra‘s ShubhLabh 

Stores, oil major IOC‘s Kisan Seva Kendras are some of the 

examples of how India Inc has moved on a path-breaking 

manner to tap this market. 


9. Swiss FMCG giant, Nestle plans to make further inroads 

into the rural markets. The company has asked its sales team 

to deliver "6,000 new sales points every month in rural 

areas" to expand its presence in Indian villages, according to 

Antonio Helio Waszyk, Chairman and Managing Director, 

Nestle India. 

10. Some companies have even re-engineered products, 

pricing and packaging to customise features and value 

relevant for these markets. For instance, Godrej has 

introduced chotu kool refrigerator; Vortex has launched low 

cost ATMs and Nokia has developed Life tools - a mobile 

application that provides access to agricultural, educational 

and entertainment content. These innovative features and 

products have facilitated a better lifestyle for the people 

residing in hinterlands. Some players have developed new 

communication and distribution channels within the rural 

agents(Tata Tea's 'Gaon Chalo') and some have created 

completely new products. 

The Indian rural market with its vast size and demand base 

offers a huge opportunity that MNCs cannot afford to ignore. 

The more daring MNCs are meeting the consequent 

challenges of availability, affordability, awareness and 

acceptability (the so-called 4 As) 

Availability 

The first challenge is to ensure availability of the product or 

service. In terms of physical distribution due to lack of 

infrastructure the costs are very exorbitant to reach the rural 

customer. Thus, mediums like rural marketing vehicles and 

melas and haats provide better opportunities to meet 

customer needs. 

Affordability 

The second challenge is to ensure affordability of the 

product or service. With low disposable incomes, products 

need to be affordable to the rural consumer, most of whom 

are on daily wages. Rural people consume most products 

such as shampoo, biscuits, tooth powder, etc in micro units. 

This is majorly linked to the fact that they earn in daily or 

weekly wages. 

Awareness 

Companies also face a daunting task in communicating 

about their products to the consumer due to lack of literacy 

and failure of traditional media to penetrate in the rural 

households. Hence, the advertising mix has to be more 

towards non-conventional yet effective medium like 

Puppetry, Folk Theater & Song, Wall Painting, 

Demonstration, Posters, Agricultural Games, NGO‘s 

network, etc. Thus overall either the product or 

communication or preferably both need to be customized to 

target the rural customer. 

―If you're trying to persuade people to do something, or buy 

something, it seems to 

me you should use their language, the language in which 

they think.‖- David Ogilvy 

Companies cannot rely on conventional advertising 

techniques in India‘s rural areas where only one in every 

three households owns a television set and more than half of 

all villagers are illiterate. Instead, companies need to turn to 

more innovative methods of advertising to reach their 

potential customer base 

Acceptability 

The fourth challenge is to gain acceptability for the product 

or service. Therefore, there is a need to offer products that 

suit the rural market. Interestingly, the rural market is 

growing at a far greater speed than its urban counterpart. 

"All the data provided by various agencies like NCAER, 

Francis Kanoi etc shows that rural markets are growing 

faster than urban markets in certain product categories at 

least. The share of FMCG products in rural markets is 53 

per cent, durables boasts of 59 per cent market share. 

Therefore one can claim that rural markets are growing 

faster than urban markets," says Sampark Marketing and 

Advertising Solutions Pvt Ltd managing director R A 

Patankar. Clearly the main challenge that one faces while 

dealing with rural marketing is the basic understanding of 

the rural consumer who is very different from his urban 

counterpart. Also distribution remains to be the single 

largest problem marketers face today when it comes to 

going rural. "Reaching your product to remote locations 

spread over 600,000 villages and poor infrastructure - roads, 

telecommunication etc and lower levels of literacy are a few 

hinges that come in the way of marketers to reach the rural 

market," says MART managing director Pradeep Kashyap. 

Anugrah Madison's chairman and managing director RV 

Rajan sums up, "There is better scope for language writers 

who understands the rural and regional pulse better. I also 

see great scope for regional specialists in the areas of rural 

marketing - specialists like Event Managers, Wall painters, 

folk artists, audio visual production houses. In fact all those 

people who have specialised knowledge of a region are 

bound to do well, thanks to the demands of the rural 

marketers." 

Conclusion 

Improving the lives of the billions of people at the bottom of 

the economic pyramid is a noble endeavour and it can also 

be a lucrative one. To launch a product especially in the 

FMCG sector a through market analysis has to be done as 

psyche of rural consumers is totally different from the urban 

consumers in India subcontinent. Looking at the challenges 

and the opportunities which Indian rural markets offer to the 

marketers it can be said that the future is very promising for 

those who understand the dynamics of rural markets and 

exploit them to their best advantage. 

References 

•The Marketing Mastermind Case study HLL- Rural 

Marketing Initiatives ICFAI Press, PP. 62, Feb 2003. 

•T. P. Gopal Swamy," Rural Marketing, Environment- 

Problems and strategies, Wheeler Publishing, 1997 

•Selling in Rural India P. Balakrishna B Sidharth ,Business 

Line,Feb 16,2004 

•Rural Marketing in India by Kuchi Sayulu, Anmol 

publication 

•Rural Marketing in India- Beyond Tactics by Rajesh Aithel, 

IIM luchnow 

•Business Line, 20 June,2009 

•Cases In Rural Marketingby Krishnamacharyulu Csg 

Lalitha Ramakrishnan Dorling Kindersley (india) Pvt Ltd 

• Rajgopal, ―Rural marketing in India.‖ Publisher: 

Renaissance Publishing House 

•Sahu Kumar Saswat; ―Rural Marketing: the future 

battleground‖-Strategies adopted for the launch of products 


in the rural markets of India‖. Indian Institute of Foreign 

Trade. 

Websites: 

•http://business.mapsofindia.com/rural-economy/statedevelopment/marketing.html 

•http://www.ficci.com/mediaroom/speechespresentations/20 

07/may/rural/Chandramouli.pdf 

•http://www.icmrindia.org/casestudies/catalogue/Marketing 

1/MKTA008.htm 

•http://images.google.co.in/images?hl=en&q=rural+marketi 

ng+in+india&um=1&ie=UTF8&ei=rUVgSo74Bs2LkAW81 

PXuDA&sa=X&oi=image_result_group&ct=title&resnum= 

•http://www.indianmba.com/Faculty_Column/FC213/fc213. 

•http://www.india-now.org/economy/ruralmarket.aspx 

•http://www.thehindubusinessline.com/todays-paper/tpmoney-banking/article1028006.ece?ref=archive 

•http://www.slideshare.net/rajeshaithal/rural-marketing-inindia-beyond-tactics 

•http://www.indexmundi.com/india/population_below_pove 

rty_line.htm 

•http://www.ibscdc.org/Case_Studies/Marketing/Marketing 

%20Strategies/MKS0017.htm 

•http://www.indiantelevision.com/perspectives/y2k4/rural_ 

marketing.htm 


Percentage 

Annexure 

Rural BPL(Below Poverty Line) Trend Over the Years 

YEAR RURAL URBAN TOTAL 

1973-74 56.40% 49% 54.90% 

1977-78 53.10% 45.20% 51.30% 

1983-84 45.70% 40.80% 44.50% 

1987-88 39.10% 38.20% 38.90% 

1993-94 37.30% 32.40% 36% 

1999-2000 27.10% 23.60% 26.10% 

2006-2007 25.90% 22.10% 24% 

People below Poverty Line In India 

60.00% 

50.00% 

40.00% 

30.00% 

20.00% 

10.00% 

0.00% 

1973-74 

1977-78 

1983-84 

1987-88 

1993-94 

Year 

1999-2000 

2006-2007 

RURAL 

URBAN 

TOTAL 

Source :NCAER 

Rural BPL is decreasing 

10% improvement in 10 years. 

Rural fast catching up with urban. 

Has a rippling effect on the overall BPL of India. 

Rural overall fairing better than Urban. 

Untapped Rural Potential 

• 600,000 villages with 700 million people 

• 50% of total GDP from rural India 

• Nearly 50% of Very rich and well off households in rural India. 

Demographic Classification of rural and urban population in India 

Demographic 

No. of households (Million) 

Classification 

Urban Rural Total 

Very rich (greater than 10 lakh per annum) 4.84 1.32 6.16 

Well off (greater than 5 lakh per annum) 29.45 27.36 56.81 

Total 34.29 28.68 62.97 

Percentage of Total 54% 46% 100% 

Source: Ministry of Communication & Information Technology, India. 

*** 


Sustainable Development in Education with Global 

change – An Indian Perspective 

Dr. Arumugam madakkannu, MBA- Head of the Department (HOD/Director), India 

Introduction 

Globalisation is taking place everywhere 

throughout the globe, which is increasing the gap between 

the rich and poor. Global sustainability will be the driving 

force changing the way we work and live in the 21 st 

Century. Globalisation revolutions in information and 

communication Technology, environment and awareness on 

eco friendly systems are driving corporate and political 

leaders and citizens to address the future in different ways. 

Companies, Government and non-Governmental 

organisations are looking to new concepts and innovative 

methods to operate. The environ mental, social, cultural, 

Economic and technological, corporate social responsibility 

and corporate Governance all provide a systematic approach 

to begin to unravel just how we might work in the 21 st 

Century. 

What is Sustainable Development? 

From the 1987 Brundtland commission, the most 

common definition of sustainable development is, “meeting 

the needs of the present without compromising the ability of 

future generations to meet their own needs”. In 2003 Dr. 

Rolf Jucken further illuminated his idea, “Sustainability is 

achieved when all people on Earth can live well without 

compromising the quality of life of future generations. 

The vision of sustainable human society resides in 

the simulataneous and synergistic creation of economic 

growth and equity, conservation of natural resources and the 

natural environment and social Justice. It is often visually 

represented as follows: 

In an increasingly globalizing economic, 

developing countries like India for want of the necessary 

skills are often at a disadvantages in negotiating and 

operating multilateral bade agreements with industrialized 

countries. Regional co-operations like, SAARC for capacity 

building is therefore necessary to ensure their effective 

participation in all forms of multilateral trades and 

agreements. 

This paper discusses, the impact of sustainable 

development in education with global change in India in the 

following perspectives and approaches towards attaining the 

same. 

1. The role of Higher Education 

There is enormous potential within India Higher 

Education. 

 

 

 

 

There are more than 350 universities. 

More than 50,000 collages offering Higher education. 

25 Million students 

More than 6% of the countries GDP in spent for 

education. 

Higher education can change the operational and curricular, 

co-curricular and many policy norms of a country. 

Especially where countries like India all students can be 

taught and practice to be environmentally, socially, 

economically responsible and act as active citizens in a 

global economy. The goal of engage students as effective 

change agents in all the challenges of sustainability students 

need to know that their daily decisions affect the quality of 

life of the people around the globe. 

2. Poverty Education and Sustainable livelihood 

It is estimated that around 25% of population in 

India are below poverty like. Poverty magnifies the problem 

of hunger and malnutrition. 

History has led to vast inephalities. Leaving almost three 

fourth of the world‟s people below the poverty line. Poverty 

and a degraded environment are closely inter-related, 

especially where people depend for their livelihoods 

primarily on the natural resource base of their immediate 

environment. The survival needs of the poor force them to 

continue to degrade and already degraded environment. 

According to some estimates about 60% of the population is 

not integrated into the market economy. Ensuring the 

security of their livelihoods is an imperative for sustainable 

development. 

3. Health and sustainable development 

The strong relationship between health and the 

state of the environment in developing countries is 

becoming increasingly evident. Citizens of developing 

countries continue to be vulnerable to a double burden of 

diseases. Traditional diseases such as cholera, malaria 

caused b unsafe drinking water and lack of hygiene have not 

yet been controlled. In addition people are now falling as 

prey to a number of modern diseases like cancer, HIV 

(AIDS), Heart and stress related disorders. 

Basic health and educational facilities in 

developing countries need to be strengthened. The role of 

public health services must give preventive health care as 

curative health care. People should be empowered through 

education and awareness to participate in managing 

preventive health care relating to environment sanitation and 

hygiene, Developing Countries should also strengthen their 


asic health services and to reduce environment – related 

health risks by sharing of health awareness and medical 

expertise globally. 

4. Changing of unsustainable patterns of production and 

consumption 

Several traditional practices are sustainable and 

environmental friendly in most of the developing countries. 

These need to be encouraged rather than replaced by more 

modern but unsustainable practices / technologies. 

Development of decisions regarding technology and 

infrastructure are a major determinant of consumption 

patterns. In several areas, desirable limits and standards for 

consumption need to be established and applied through 

proper mechanisms including education, incentives and 

legislation. It is therefore important to evaluate and make 

development decisions which structurally lead to a more 

sustainable society. with in creating purchase power of the 

people, wasteful consumption linked to market driven 

consumerism is stressing the resource base of developing 

countries further. It is therefore important to counter act 

through public awareness and education similarly all the 

pricing mechanisms must be evaluated from a sustainable 

development point a view. 

5. Managing and protecting the natural resources for 

economic & social Development 

To ensure the sustainability of the natural resource 

base, the recognition of the stakeholders in it and their roles 

in its protection and management in essential. The 

integration of agriculture with land and water management 

and with ecosystem conservation is essential for both the 

sustainability of environment and agricultural production. 

Water governance should protect ecosystems & Natural 

water bodies. As healthy eco systems provide better 

livelihoods, traditional approaches to natural resource 

management such as sacred ponds and groves water 

harvesting and educational management systems should be 

revived by creating proper institutional mechanisms. 

6. Strengthening of governance for sustainable 

development at different levels 

Effective management of resource, requires 

participation by all the stakeholders at the local, national and 

international at the local level, strengthening democratic 

institutions generally leads to better and more sustained 

management of natural resources. All members of society 

are the stakeholders of sustainable development. Women 

makeup half of this group. Affirmative action to ensure 

representation and power to women in local governance and 

appropriate capacity building are necessary to make them 

effective and equal partners in the development process. 

Similarly children are a valuable asset of every society. 

Children should be made to realize their potential through 

governance at the local level. At the national level areas 

lacking policies should be identified and adequate policies 

compatible with the imperatives of sustainable development 

framed, taking into account successful examples, of policies 

and initiatives in similar areas. In the international level, 

efforts must be made, especially by developing countries to 

work towards synergizing experiences and raising shared 

regional concerns as a strong united front in international 

forms. currently there is a multiplicity of institutions with 

fragmented responsibilities. A better governance regime is 

required to ensure co-operation and compliance. 

Means of implementation: 

Finance: 

The commitments made by industrialized countries 

at the earth summit at Rio, a decade ago remain correct 

largely Overseas assistance (ODA) in declining. This is a 

cause for concern which has been voiced by several 

developing countries. Industrialized countries must honor 

their ODA commitments. Developing countries must 

explore some new ways to finance their sustainable 

development such as, ecological taxations. 

Trade: 

WTO (World Trade Organization) should not to put 

trade barriers against developing countries. Imperatives of 

trade relating to environment, equity and social justice 

should be dealt with independently. Mechanisms to resolve 

issues between „TRIPS‟ (Trade Related Intellectual Property 

Right and CBD Convention on Biological Diversity) to be 

set up. 

Technology: 

Developing countries need not follow 

conventional path instead they can use the „cutting edge‟ or 

can put the modern technology in use, at reasonable cast 

through suitable mechanisms. Technology transfer, 

upgrading local technologies should be encouraged. 

Science and Education: 

Mainstream education must be realized to promote 

attitudes, awareness, knowledge and skills which will lead 

to sustainable development. Basic education must be made 

available to each and every child as a fundamental right 

without any discrimination. The empowerment of women 

and girls to be supported by access to higher education, 

training and development. 

For science and technology refer capacity building 

should be made through collaboration between research 

institutions, scientists, private sector NGO‟s state and 

central governments and also with all the stake holders to 

improve its application in various fields. 

Population: 

Population is not just counting the heads (numbers) but 

bothering about the health and quality of life of people 

especially women in particular. Key population issues 

should be discussed at various levels such as the central, 

state legislatures t local government bodies to achieve the 

long term objectives or a sustainable development of the 

country. 

Concluding remarks:- 

This paper at hand thus concludes that there is an 

urgent need for Indian higher education to advocate for 

sustainable development. The extant to which, the citizens 

of a country adopt and follow the principles of sustainable 

development may determine the Quality of life that all the 

human beings enjoy in the coming decades ahead. Time and 

again it is proved that the ecosystems are degrading we are 

exceeding the carrying capacity of the mother planet, „The 

earth‟. As 25% of the world‟s population consume 80% of 

the world‟s resources, the earth simply cannot tolerate 

billion of people following the same path. Now as 


esponsible citizens, we can economically reduce human 

sufferings, environ by educating our students to ensure a 

future with a healthy environment, social justice and strong 

economies. Finally, we must demonstrate innovative paths 

to economic prosperity of the people of the our country 

without compromising our future. 

References 

1. UNESCO Teaching and Learning for 

sustainable future, A critical evaluation, 

Trumpeter, Vol.19, No.2, Rolf Jucker 2003. 

2. WWW. worldwatch.org/Topics/nature. 

3. WWW.myfootprint.org 

4. WWW.uspartnership.org/Higher Education 

5. WWW.aashe.org 

6. WWW.unesco.org/education 

7. Campus climate 

challenge(WWW.Climatechllenge.org) 

8. Campus ecology (WWW.nwf.org) 

9. U.S. Fair Trade (WWW.transfair usa.org) 

10. Higher Education for sustainable Development 

Resource Project (WWW.hedrp.org/index.php) 

Annexure 

Healthy 

Environment 

Social 

Justice 

Sustainable 

Society 

Economic 

Growth 

Fig. 1 


TABLE-1 

TABLE-2 


Study of Impact of Green Marketing on Sale 

Ashish Vasantrao Gadekar, HEAD, Department of Business Studies, Maha Maya University, India 

Rimalini Ashish Gadekar, Faculty In Mechanical Engineering, Government Polytechnic Nagpur 

Introduction 

According to The American Marketing Association, “Green 

or Environmental Marketing consists of all activities 

designed to generate and facilitate any exchanges intended 

to satisfy human needs or wants, such that the satisfaction of 

these needs and wants occurs with minimal detrimental 

impact on the natural environment.” 

Thus according to the American Marketing Association, 

Green marketing is the marketing of products that are 

presumed to be environmentally safe. Green marketing 

incorporates a broad range of activities, including product 

modification, changes to the production process, packaging 

changes, as well as modifying advertising. Other similar 

terms used are Environmental Marketing and Ecological 

Marketing. Recently, Green Marketing has drawn the 

attention of government and this has forced them to 

introduce environment-friendly policies. As resources are 

limited and human needs and wants are unlimited, resources 

have to be utilized economically and in an environment 

friendly way. The marketers should realize this and head on 

towards Green Marketing. Indian Government has already 

introduced Environment Protection Act in1986 and 

Environment Audit in 1992, the marketers have to realize 

that with increasing amount of global warming and 

Similarly, green marketing can operate from three 

perspectives: the personal, through products and individual 

benefits, the social, through communities and associations, 

and public, doing business and cultural leaders, credible 

resources (Grant , 2007). Goods and services exchanged in 

the green marketing are known as organic products or 

products that respect the environment. To Minetti (2002), 

three types of organic products: a) healthy products, those 

that have some ecological feature to connect to the market, 

b) natural products, goods that are environmentally friendly, 

and c) pseudoecológicos products, they say going green to 

win the favor of a market segment. 

The Evolution of Green Marketing 

Green marketing has evolved over time. According to 

Peattie (2001), green marketing has had three phases. The 

first phase occurs during the decades of 60 and 70, and is 

called the Green Marketing Green . This phase relates all the 

activities that seek to help solve environmental problems 

and aims to recognize the role that businesses, products and 

consumers from environmental problems such as 

degradation of biodiversity, global climate change and 

deterioration of the ozone layer. This phase is also 

evidenced by the increase in environmental standards and 

regulations that appear incorporated into development plans 

and sectoral programs. 

The second phase corresponds to the Green Environmental 

Marketing and occurs in the 80's. At this stage the main 

purpose is to use clean technology in innovative product 

design and production systems. For this reason, we have 

taken steps in certain production processes for the care of 

the environment by preventing and controlling pollution and 

waste, mainly. During this time, it happens one of the 

stronger chemical disasters in the world, especially in India, 

caused by a gas leak in Bhopal region that wiped out more 

than 15,000 people. This second phase is characterized by 

the rise of activist groups and boycotts against the 

environmental damage caused by products, companies and 

governments. 

The third phase consists of the Sustainable Green Marketing 

and evidence during the 90's very close to the millennium. 

This stage shows the development of deeper and more 

meaningful green marketing, by providing an opportunity 

for sustainable consumption and production based on the 

protection and enhancement of natural resources (Peattie, 

2001). As resources are limited and the needs of human 

beings are unlimited, it is important that marketing experts 

use resources efficiently, to achieve the corporate objectives 

of companies and organizations. The consumer is aware of 

the environmental impact and more of those products that 

are related to this initiative. At this stage it is found that 

green marketing is inevitable in the current context given the 

growing interest among global consumers regarding 

environmental protection. 

Challenges of Green Marketing 

Implementing Green marketing is not going to be an easy 

job. The firm has to face many problems while treading the 

way of Green marketing. Challenges which have to be faced 

are listed as under: 

1. Green marketing encourages green 

products/services, green technology, green power/energy; a 

lot of money has to be spent on R&D programmes. Thus 

practicing green marketing initially will be a costly affair. 

2. The customers may not believe in the firm‟s 

strategy of Green marketing, the firm therefore should 

ensure that they convince the customer about their green 

product, this can be done by implementing Eco-labeling 

schemes. Eco-labeling schemes offer its “approval” to 

“environmentally less harmless” products have been very 

popular in Japan and Europe. In fact the first eco-label 

programme was initiated by Germany in 1978. 


3. Initially the profits will be very low since 

renewable and recyclable products and green technologies 

are more expensive. Green marketing will be successful 

only in long run. 

4. Many customers may not be willing to pay a higher 

price for green products which may affect the sales of the 

company. 

5. The firm may give up on Green marketing concept 

or be forced to practice unfair means to cut cost to sustain in 

the competition and thus the entire idea of going green will 

be a farce. 

6. The firms practicing Green marketing have to 

strive hard in convincing the stakeholders and many a times 

there may be some who simply may not believe and cooperate. 

Adoption of Green Marketing Companies 

There are basically four reasons why an employer should 

take the green marketing: 

• Opportunities or competitive advantages . In this 

case, companies can create an attribute in a product to make 

it green, allowing them to differ radically change its promise 

of value to customers. 

• Corporate social responsibility . Today, consumers 

are becoming more educated and aware of the fate of their 

planet, and consequently require greater corporate 

responsibility towards environmental protection. 

• Government pressure . A government may impose 

conditions to the productive sector needed to meet 

environmental standards through the creation of programs 

that grant certificates to the highest standards legally 

permitted. 

• Competitive pressure . Companies should consider 

not only permanently behavior of your target market, but 

also need to focus on a broad knowledge of the movements 

of your competition. International markets require products 

that are marketed outside their national borders are certified 

organic. For this reason, the competitors are paying attention 

to government requirements and encourage consumers to 

purchase organic products. 

Worth considering in the first instance, the ecological 

marketing is not easy to implement. Each company 

combines its strategies according to their objectives and 

future plans. In the design of a marketing process, an 

entrepreneur who wishes to make green marketing strategies 

should consider ecological objectives within the 

composition of their marketing mix . 

An important rule in marketing green is to minimize the 

sacrifices he must make consumers to buy and use green 

products. The improvements should make the companies 

that get into the green marketing must be substantive, and if 

possible, supported by facts. 

Some companies offer organic products that consumers do 

not understand, and therefore are not willing to pay a higher 

price for their environmental characteristics. As happened to 

Whirlpool, he learned from mistakes made with their clients, 

because the organization did not prepare your claim to be 

willing to pay a higher price for the purchase of a 

refrigerator CFC-Free (free of chlorofluorocarbón). Your 

customers never understood what it meant 

chlorofluorocarbón. Now, if they used clear communication 

strategies to explain the chlorofluorocarbón is a group of 

chemicals that deplete the ozone layer and is considered the 

"greenhouse gas", surely the results in sales and marketing 

would be different. 

Thus, it is important to say that the concern about the 

environment and increased demand for goods "green" has 

been the driving impetus for revitalizing the concept of 

green marketing focus which predominates in balancing the 

goals of profitability and awareness by society and the 

environment. 

Review of literature 

Brahma, M. & Dande, R. (2008), The Economic Times, 

Mumbai, had an article which stated that, Green Ventures 

India is a subsidiary of New York based asset management 

firm Green Ventures International. The latter recently 

announced a $300 million India focused fund aimed at 

renewable energy products and supporting trading in carbon 

credits. Founder & CEO of Emergent Ventures India (EVI) 

Vinod Kala says he realised in 2004 that there is huge 

business potential in environment. The US and the EU have 

asked both India and China to reduce their baseline 

emissions, which should get implemented by 2020. Mr. 

Bharathwaj says that once that happens and the Government 

adopts more stringent policies for curbing carbon emissions, 

Clean Technology ventures would assume greater 

importance in the country and as a result there would be 

more investment interest within the sector. Chaudhary, R., 

And Bhattacharya, V. (2007), in their article on Clean 

Development Mechanism: Strategy for Sustainability and 

Economic Growth published in Indian Journal for 

Environmental Protection, state that, The Clean 

Development Mechanism (CDM), a co-operative 

mechanism established under the Kyoto protocol, has the 

potential to assist developing countries in achieving 

sustainable development by promoting environment friendly 

investment from industrialised country governments and 

businesses. 

A survey by Mckinsey and company revealed that: (1) 92% 

of CEO‟s believe that environment should be top 

management priority; (2) 35% CEO‟s believe that their 

companies have adopted strategies to anticipate impacts of 

environment on business. Polonsky and Alma (2008), in 

their edited book titled Environmental Marketing – 

Strategies, Practice, Theory and Research, discuss the role 

of marketing in improving our environment. The book states 

that role of Marketing in the development process is well 

recognized (Kinsley 1982; Riley et al. 1983; Dholakia 1984; 

Carter 1986; Kotler 1986). 

Green marketing will play an important role in achieving 

sustainable development. Dutta, B. (2009, January) in his 

article on Green Marketing titled Sustainable Green 

Marketing The New Imperative published in Marketing 

Mastermind states that Green Marketing involves 

developing good quality products which can meet consumer 

needs and wants by focusing on the quality, performance, 

pricing and convenience in an environment-friendly way. 

Unruh, G. And Ettenson, R. (2010) in their research article 

titled, Growing Green: Three smart paths to developing 

sustainable products. Published in Havard Business Review, 

is for executives who believe that developing green products 

make sense for their organisation and need to determine the 


est path forward. The authors have introduced and 

described three broad strategies that companies can use to 

align their green goals with their capabilities: 

• Accentuate: Strategy involves playing up existing 

or latent green attributes in your current portfolio. 

• Acquire: Strategy involves buying someone else‟s 

green brand. 

• Architect: Strategy involves architecting green 

offerings – building them from scratch. 

These strategies emerged from 10 in depth case studies of 

consumer product and industrial companies that were 

moving into green space; the authors discussed with dozens 

of senior and midlevel sustainability executives. The 

framework now plays a central role in the core executive 

MBA course offerings in sustainable business strategy and 

in the executive education programs at Thunderbird School 

of Management. 

Green Marketing Practices in India 

Nike is the first among the shoe companies to market itself 

as green. It is marketing its Air Jordan shoes as 

environment-friendly, as it has significantly reduced the 

usage of harmful glue adhesives. Kansai Nerolac Paints has 

been at the forefront of paint manufacturing for more than 

88 years pioneering a wide spectrum of quality paints. 

Kansai Nerolac has worked on removing hazardous heavy 

metals from their paints – among this lead being the most 

prominent metal. Kansai Nerolac does not add any lead or 

other such heavy metals in its manufacturing process. Dell 

has been one of the vendors who focus on producing green 

IT products. They have a strategy called "Go green with 

Dell" to sell these products in the market. It also comes in an 

eco-friendly packaging with a system recycling kit bundled 

along. Talking about the green commitments of the 

company, Sameer Garde, Country GM, Dell India, says, 

"Dell is also actively pursuing green innovations that will be 

of value in 2009 from data-center efficiency to the use of 

eco-friendly materials for everything from chassis design to 

product packaging. Eco Hotels (Ecotels) is a certification 

system promoted by Hospitality Valuation Services (HVS) 

International. This system is based on 5 main criteria: 

environmental commitment, solid waste management, 

energy efficiency, water conservation, and employee 

education/community involvement. In India we have Ecohotels 

like Orchid, Rodas, Raintree etc. believing and 

practicing green marketing. According to Harish Tiwari of 

Infinity Infomatic Pvt Ltd, a well known distributor, who 

says, "We don't find any difficulty in selling green products 

because the knowledge for these products has increased in 

us as well in customer. They are ready to pay higher for 

these products once they convinced." In May 2007, IBM 

launched Project Big Green to help clients around the world 

improve the efficiency of IT and better optimize their data 

center resources. IBM has software and services 

technologies to help businesses reduce data center energy 

consumption and cut energy costs by more than 40 percent. 

New Delhi, the Capital of India, was being polluted at a very 

fast pace until Supreme Court of India forced a change to 

alternative fuels. In 2002, a directive was issued to 

completely adopt CNG in all public transport systems to 

curb pollution. Gas Tech Electronic Products (Pvt) Ltd. has 

invented LPG Kit for motorcycles/scooters (4 stroke and 2 

stroke).Can be fitted in 50 cc to 375 cc air cooled , single 

cylinder 2 stroke as well 4 stroke vehicles with cent % fuel 

efficiency, with clean exhaust and zero pollution. 

When does the Green Marketing Cross the Green washing 

Line? 

This question is the province of the Federal Trade 

Commission (FTC), which is currently in the process of 

updating its Green Guides (Guides for the Use of 

Environmental Marketing Claims, first published in 1992 

and updated in 1996 and 1998). The FTC has authority to 

file complaints against environmental marketing that it 

considers fraudulent. The current Green Guide specifies that 

a claim should be evidence-based, specific and clear in its 

claim, and not exaggerated. These three requirements 

address many but not all of the greenwashing approaches 

discussed above so far (note 9) but the guidelines are only as 

good as their enforcement. Since their inception, the FTC 

has filed fewer than 50 complaints against marketing claims, 

(note 10) including those against companies (Kmart, Tender, 

Dyna-E) claiming biodegradability for products that are not 

biodegradable and four companies claiming that bamboo 

clothing is environmentally friendly when the process which 

converts bamboo into usable rayon is highly polluting. 

The Green Guide does not yet specify that the 

environmental impact of decisions should take a lifecycle 

approach. Lifecycle analysis includes “looking at how 

(product) production, transport and use affect(s) greenhouse 

gases, water supply, total energy use, toxicity to humans and 

animals, potential for acid rain, smog and other factors” 

If your company is considering implementing a green 

marketing strategy, note the following: 

1. Green is not just the color of money, it is the color of 

social-responsibility. More and more companies and 

institutions want to be socially responsible and perceived as 

buying green. 

2. Don’t trivialize the subject with unsubstantiated or 

marginal claims. While there are no strict guidelines for 

green claims, energy savings, resource conservation, and 

reduced emissions are benchmarks of green B2B products. 

Other valid platforms include: biodegradable and/or easily 

recycled, reduced toxins, and engineering for increased 

efficiency and reduced maintenance. 

3. Price will always be a factor considered in purchasing 

decisions. Selling green products at price points higher than 

competitors can dampen sales, unless the cost of 

consumables, such as energy, is predicted to dramatically 

increase in the near-term. If you plan to sell an energyconsuming 

green product at a higher price than less-efficient 

competitors, you may want to provide customers with 

information about applicable utility rebate programs, and 

government incentives. 

4. Present your green message proudly and boldly. Don’t 

hide your green message. It deserves more than a simple 

bullet point. 

5. Keep your message focused and answer the question: 

“Why would someone buy your product?” A focused 


message that answers this question is preferable to 

generalities that require the buyer to search for meaning. 

6. Green marketing is an evolving discipline, but uses 

similar marketing tools to more established marketing areas. 

Campaigns that leverage user commentary, case studies, 

thought leadership initiatives and other means attract 

potential buyers and establishes a comfort level with your 

company. 

Methodology 

Hypotheses 

Based on the previously cited theoretical and empirical 

literatures, the following hypotheses referring to the sales 

were proposed. 

Hypothesis 1: There is a significant difference between male 

and female in their attitude towards environment and Green 

Products. 

Hypothesis 2: There is a significant relationship between 

consumer’s attitude towards government’s role and their 

attitude on green products. 

Hypothesis 3: There is a significant relationship between 

Green Labeling and product sell 

Hypothesis 4 There is a significant relationship between 

Cost and Greenness of the products. 

Hypothesis 5: Cost is deciding factor for sell and purchase 

of Green Products. 

Research Instruments 

In order to obtain reliable information from the respondents, 

established and validated scales were selected for data 

collection. In this study, the survey instrument of attitudes 

toward the environment as the independent variable was 

adopted from the scales developed by Tantawi et al. (2007). 

Only Fifteen items were used out of the original 38 items. 

Some items were dropped, as it was not suitable in the 

Indian context. The dependent construct, attitude towards 

green product was derived from Mostafa (2006) and consists 

of two items. The respondents were asked to rate each item 

on a 5-point Likert scale from 1 = strongly disagree to 5 = 

strongly agree. Schuessler (1971) stated that a scale is 

considered reliable if it has an alpha value greater than 0.60. 

Hair et al. (1998) added that reliability estimates between 

0.60 and 0.70 represent the lower limit of acceptability in 

quantitative research studies. Due to the exploratory nature 

of this research, alpha value greater than 0.60 for reliability 

estimates is considered adequate. 

Data Collection and Characteristics of Respondents 

The questionnaires for this study were administered to 500 

citizens from a major cities in India. Ferber (1977) argued 

that using citizens sample is considered valid for exploratory 

studies. Furthermore, citizens are representing the new 

generation of consumers and have been a growing 

population of consumers in India. The survey was conducted 

online, personally and telephonically with proper care, 

assured anonymity. Participation was voluntary and no 

remuneration was offered. The respondents were consisted 

of both sexes and of different races. A total of 472 

completed the questionnaires (yielding a response rate of 

94.4%) were obtained and deemed sufficiently complete to 

be useable. The majority of the respondents were female 

(67.4%) and of Indian ethnicity (89.2%). 

Findings: 

About 90% of the respondents considered environment 

friendly products to be safe for nature. Concern for future on 

one hand and cost effectiveness on the other extreme of the 

spectrum of highly idealistic to highly pragmatic clients 

were articulated by very few respondents (about 10 per cent 

each). Apparently the customers are appraising the products 

on safety to nature and human health. While the cost is not 

mentioned as a major consideration, it becomes crucial 

when the willingness to pay the premium is inquired. 

About 75 per cent respondent were willing to buy most 

environment friendly products and the 40 per cent 

respondent had actually never bought one. Most important 

aspect of this dimension is that the ones who were willing to 

pay premium for one kind of green good were willing to pay 

premium for other goods as well and more or less in the 

same range. 

Attitudinal Profile: 

Several iterations were tried to understand the attitudinal 

profile of different groups of consumers. There are primarily 

four kinds of consumers at the most general level we could 

discern from this survey: 

The Motivated mobilizers are wiring to join an ecological 

club, pay pollution tax, do not think that environmental 

problems are for government to worry about. 

The populist mobilizers are those who will not hesitate in 

carrying a plastic bag even for those things which can be 

carried otherwise, consider government to be responsible for 

environmental problems, do not try to save energy and have 

never shifted brands due to environmental reasons. 

The passive committed consumers are responsible for their 

own conduct but do not want to bother others. They are 

highly educated, are aware of many brands of environmental 

friendly products, and do make effort to save energy. 

The indifferent and indolent consumers have never 

contacted any agency for reducing pollution, never looked 

around for organic products and consider environmental 

problems to be the concern of government. 

Conclusion 

The correlates of the attempt to look around for organic food 

articles provide an interesting insight about the people 

behave. Those who never looked around for organic 

products will prefer to use a plastic bag even when the 

things can be carried otherwise, will not carry a cloth bag, 

may not join an ecological club, may not donate a day’s 

salary, neither will stop buying products of companies that 

are guilty of pollution, and of course are unwilling to pay 


pollution tax. While converse may not be true, still those 

having a more favorable outlook. 

So far as women consumers are concerned, they are 

prepared to pay much higher premium on health and beauty 

products, have strong interest in recycling of waste, and 

reducing pollution control. 

Bibliography: 

1. Bob Lipp, Marcomm Group, Inc., 

2. Baker, Michael. The Marketing Book. Fifth Edition. 

Elsevier, 2002. 

3. Federal Trade Commission. Frequently Asked 

Advertising Questions: A Guide for Small Business. 

Available 

from 

http://www.ftc.gov/bcp/conline/pubs/buspubs/ad-faqs.htm 

Retrieved on 13 March 2006. 

4. Meiklejohn, Gregg. "The Marketing Value of 

Environmental Stewardship." Direct Marketing. October 

2000. 

5. Meyer, Harvey. "The Greening Corporate 

America." Journal of Business Strategy. January 2000. 

6. "Nearly Two-Thirds of Americans Have Tried 

Organic Foods and Beverages." Press Release. Whole Foods 

Market. Available from 

http://www.wholefoodsmarket.com/company/pr_11-18- 

05.html 18 November 2005. 

7. Ottman, Jacquelyn A. Green Marketing. Second 

Edition. BookSurge Publishing, May 2004. 

8. Smith, Allison E. "Green Markets: Survey shows 

consumers' desire for environmentally-sensitive products." 

Incentive. August 2005. 

9. U.S. Department of Agriculture. The National 

Organic Program Available from 

http://www.ams.usda.gov/nop/indexNet.htm Retrieved on 

13 March 2006. 

10. Wagner, Marcus, and S. Schaltegger. How Does it 

Pay to Be Green? Tectum Verlag DE, 2003. 

11. Webb, Tom. "Organic Farms See Soaring Demand: 

Supporters say more are needed in Minnesota, Wisconsin." 

Saint Paul Pioneer Press. 11 March 2006 

12. 

http://www.ftc.gov/bcp/edu/microsites/energy/abou 

t_guides.shtml 

13. http://www.nrn.com/article 

14. 

http://www.environmentalleader.com/2009/06/10/ft 

c-cites-kmart-tender-dyna-e-for-false-green-claims/, note 11 


A Review – Banking in India – Past, Present and Future 

in order to Safeguard the Finance of Customers 

Sanjaykumar | Vitthall Omase, Balasaheb Mane Education Trust‟s Rajarshi Shahu Arts & Com., 

College, Rukadi, Tal.-Hatkanangale, Dist.Kolhapur, Maharashtra 

Anil Trimbakrao Gaikwad, Bharati Vidyapeeth Deemed University, Pune. 

Abstract 

The Banking system India has glorious history, bright 

future and pleasant present which can be observed by 

sustaining the recession period from last five years. The 

Banks are the important organizations in society which 

require faith of customers to keep their assets in terms of 

money and gold in banks. The banks have to follow strict 

policies in terms asset and liabilities management. The 

banks are using ICT facilities to provide better service to the 

account holders. The authors have done decent effort to find 

out the major issues of the banks in India to the readers to 

update their knowledge . The banks in future will be very 

sensitive to the changing environment of the world wide 

customer. 

The Finance in terms of deposits and advances will depend 

on the bank polices to lend and take deposits with inter rate 

which will attract the account holders . The paper deals with 

the banking history , future and finance safety to customer. 

Keywords :- Banking System, ICT, Credit Card, ATM, 

Loan Process, Lockers, NPA. 

History of Banking in India 

Definition of Banking 

The business of the banking has been defined in Section 

5(b) of the Act as follows: 

“ Accepting for the purpose of lending or investment of 

deposit of money from public , repayable on demand or 

otherwise and withdrawal by cheque, draft , order or 

otherwise.” 

The Narasimham Committee 

The banking sector reforms in the 1990s in India were 

based on the report of the committee headed by Mr. M. 

Narasimham in 1991. Major recommendations of the 

committee were as follows 

1) There should be speedy computerization of the 

banking Industry . It suggested to trace on the 

computerization of banking operations. 

The Narasimham Committee –II 

The Narasimham Committee , in its second report on 

banking sector reforms , submitted in April 1998, made a 

series of sweeping recommendations which are being used 

as a launching pad to take India banking into future. The 

report covers following points related with computerization 

and it mainly traces on strengthening the Management 

Information System within the banks and financial 

Institutions so as to sensitize them to the market risk 

assumed by them 

Without a sound and effective banking system in India it 

cannot have a healthy economy. The banking system of 

India should not only be hassle free but it should be able to 

meet new challenges posed by the technology and any other 

external and internal factors. 

For the past three decades India's banking system has 

several outstanding achievements to its credit. The most 

striking is its extensive reach. It is no longer confined to 

only metropolitans or cosmopolitans in India. In fact, Indian 

banking system has reached even to the remote corners of 

the country. This is one of the main reason of India's growth 

process. 

The first bank in India, though conservative, was established 

in 1786. From 1786 till today, the journey of Indian Banking 

System can be segregated into three distinct phases. They 

are as mentioned below: 

• Early phase from 1786 to 1969 of Indian Banks 

• Nationalisation of Indian Banks and up to 1991 

prior to Indian banking sector Reforms. 

• New phase of Indian Banking System with the 

advent of Indian Financial & Banking Sector Reforms after 

1991. 

To make this write-up more explanatory, I prefix the 

scenario as Phase I, Phase II and Phase III. 

Phase-I 

The phase one is banking beginning with respect to 

customers. The Indian banks have also gone from beginning 

in short to long changes with advancements in polices and 

rules to make banks strong. 

The General Bank of India was set up in the year 1786. Next 

came Bank of Hindustan and Bengal Bank. The East India 

Company established Bank of Bengal (1809), Bank of 

Bombay (1840) and Bank of Madras (1843) as independent 

units and called it Presidency Banks. These three banks 

were amalgamated in 1920 and Imperial Bank of India was 


established which started as private shareholders banks, 

mostly Europeans shareholders. 

In 1865 Allahabad Bank was established and first time 

exclusively by Indians, Punjab National Bank Ltd. was set 

up in 1894 with headquarters at Lahore. Between 1906 and 

1913, Bank of India, Central Bank of India, Bank of Baroda, 

Canara Bank, Indian Bank, and Bank of Mysore were set up. 

Reserve Bank of India came in 1935. 

During the first phase the growth was very slow and banks 

also experienced periodic failures between 1913 and 1948. 

There were approximately 1100 banks, mostly small. To 

streamline the functioning and activities of commercial 

banks, the Government of India came up with The Banking 

Companies Act, 1949 which was later changed to Banking 

Regulation Act 1949 as per amending Act of 1965 (Act No. 

23 of 1965). Reserve Bank of India was vested with 

extensive powers for the supervision of banking in India as 

the Central Banking Authority. 

During those days public has lesser confidence in the banks. 

As an aftermath deposit mobilization was slow. Abreast of it 

the savings bank facility provided by the Postal department 

was comparatively safer. Moreover, funds were largely 

given to traders. 

Phase-II 

Government took major steps in this Indian Banking Sector 

Reform after independence. In 1955, it nationalised Imperial 

Bank of India with extensive banking facilities on a large 

scale specially in rural and semi-urban areas. It formed State 

Bank of india to act as the principal agent of RBI and to 

handle banking transactions of the Union and State 

Governments all over the country. 

Seven banks forming subsidiary of State Bank of India was 

nationalised in 1960 on 19th July, 1969, major process of 

nationalisation was carried out. It was the effort of the then 

Prime Minister of India, Mrs. Indira Gandhi. 14 major 

commercial banks in the country was nationalised. 

Second phase of nationalisation Indian Banking Sector 

Reform was carried out in 1980 with seven more banks. 

This step brought 80% of the banking segment in India 

under Government ownership. 

The following are the steps taken by the Government of 

India to Regulate Banking Institutions in the Country: 

• 1949 : Enactment of Banking Regulation Act. 

• 1955 : Nationalisation of State Bank of India. 

• 1959 : Nationalisation of SBI subsidiaries. 

• 1961 : Insurance cover extended to deposits. 

• 1969 : Nationalisation of 14 major banks. 

• 1971 : Creation of credit guarantee corporation. 

• 1975 : Creation of regional rural banks. 

• 1980 : Nationalisation of seven banks with deposits 

over 200 crore. 

After the nationalisation of banks, the branches of the public 

sector bank India rose to approximately 800% in deposits 

and advances took a huge jump by 11,000%. 

Banking in the sunshine of Government ownership gave the 

public implicit faith and immense confidence about the 

sustainability of these institutions. 

Phase-III 

The Phase is recent which involves following points, this 

phase has introduced many more products and facilities in 

the banking sector in its reforms measure. In 1991, under the 

chairmanship of M Narasimham, a committee was set up by 

his name which worked for the liberalization of banking 

practices. 

The country is flooded with foreign banks and their ATM 

stations. Efforts are being put to give a satisfactory service 

to customers. Phone banking and net banking is introduced. 

The entire system became more convenient and swift. Time 

is given more importance than money. 

Banks In India 

In India the banks are being segregated in different groups. 

Each group has their own benefits and limitations in 

operating in India. Each has their own dedicated target 

market. Few of them only work in rural sector while others 

in both rural as well as urban. Many even are only catering 

in cities. Some are of Indian origin and some are foreign 

players. 

One more section has been taken note of is the upcoming 

foreign banks in India. The RBI has shown certain interest 

to involve more of foreign banks than the existing one 

recently. This step has paved a way for few more foreign 

banks to start business in India. 

Major Banks in India 

• ABN-AMRO Bank 

• Abu Dhabi Commercial Bank 

• American Express Bank 

• Andhra Bank 

• Allahabad Bank 

• Axis Bank (Earlier UTI Bank) 

• Bank of Baroda 

• Bank of India 

• Bank of Maharastra 

• Bank of Punjab 

• Bank of Rajasthan 

• Bank of Ceylon 

• BNP Paribas Bank 

• Canara Bank 

• Catholic Syrian Bank 

• Central Bank of India 

• Centurion Bank 

• China Trust Commercial Bank 

• Citi Bank 

• City Union Bank 

• Corporation Bank 

• Dena Bank 

• Deutsche Bank 

• Development Credit Bank 


• Dhanalakshmi Bank 

• Federal Bank 

• HDFC Bank 

• HSBC 

• ICICI Bank 

• IDBI Bank 

• Indian Bank 

• Indian Overseas Bank 

• IndusInd Bank 

• ING Vysya Bank 

• Jammu & Kashmir Bank 

• JPMorgan Chase Bank 

• Karnataka Bank 

• Karur Vysya Bank 

• Laxmi Vilas Bank 

• Oriental Bank of Commerce 

• Punjab National Bank 

• Punjab & Sind Bank 

• Scotia Bank 

• South Indian Bank 

• Standard Chartered Bank 

• State Bank of India (SBI) 

• State Bank of Bikaner & Jaipur 

• State Bank of Hyderabad 

• State Bank of Indore 

• State Bank of Mysore 

• State Bank of Saurastra 

• State Bank of Travancore 

• Syndicate Bank 

• Taib Bank 

• UCO Bank 

• Union Bank of India 

• United Bank of India 

• United Western Bank 

• Vijaya Bank 

• Kotak Mahindra Bank 

• Yes Bank 

Banking services in India 

With years, banks are also adding services to their 

customers. The Indian banking industry is passing through a 

phase of customers market. The customers have more 

choices in choosing their banks. A competition has been 

established within the banks operating in India. 

With stiff competition and advancement of technology, the 

services provided by banks has become more easy and 

convenient. The past days are witness to an hour wait before 

withdrawing cash from accounts or a cheque from north of 

the country being cleared in one month in the south. 

This section of banking deals with the latest discovery in the 

banking instruments along with the polished version of their 

old systems. 

Indigenous bankers 

The indigenous bankers occupy an important place in the 

Indian Financial system . from ancient time, indigenous 

banking system has been in Existence in India .the 

indigenous bankers lend money, act as money changers And 

finance internal trade by means of internal bill of exchange. 

the business Of the indigenous bankers is generally a family 

concern. With their own capital They grant loans against 

securities such as gold, jewellery, and, promissory Notes, 

etc. they also buy and sell remittances and discount hundies. 

The indigenous bankers do not have contact with other 

sections of the Banking world. they combine banking with 

trading and commission business They generally deal with 

agriculturist and small traders. The interest rate Charged by 

Commercial Banks, Scheduled Banks , Non Scheduled 

Banks, Co-operative Banks, Primary Co-operative Credit 

Societies, Central Co-operative Banks, State Co-operative 

Banks, Land Development Banks, State Bank of India 

The State Bank of India was formed on 1 July, 1955, with 

the passing of the State Bank of India Act, 1955, by taking 

over the assets and liabilities of the Imperial Bank of India. 

The Banking Regulations Act. 1949. 

Banks are public service institutions dealing with the funds 

of the public. The act was introduced in March 1948 and 

was passed in the parliament in February 1949. It covers 

following points related with Banking. 

1) Definition of Banking 

2) Business of Banking company and Prohibited 

Business 

3) Capital Requirement 

4) Management of Banks 

5) Maintenance of Liquid Assets 

6) Licensing of Banks 

7) Opening of new branches 

8) Provisions Regarding Loans and Advances 

9) Inspection of Banks 

10) Powers of the Reserve Bank of India 

11) Returns to be submitted 

12) Acquisition of Business 

13) Winding up of Banking Companies 

14) Amalgamation of Banking Companies 

15) Miscellaneous – Penalities 

16) Application of Act to Co-operative Banks. 

PRESENT MAIN SERVICES PROVIDED BY MAJOR 

BANKS IN INDIA 

Deposits, advances , lockers facility, payments and 

settlements , other financial services . 

We can study the main aspect of advances and loan with 

respect to following points 

Profit is the pivot on which the entire business activity 

rotates. Banking is essentially a business dealing with 

money and credit. Like every other business activity. Banks 

are profit oriented. A bank invests its funds in many ways to 

earn income. The bulk of its income is derived from loans 

and advances. 

Banks make loans and advances to traders, businessmen and 

industrialists against the security of some assets or on the 

personal security of the borrower. In either case , the banks 

run the risk of default in repayment. Therefore , banks have 

to follow a cautious policy and sound lending principles in 

the matter of lending . 


Principles of Sound lending 

The banks have to follow three basic principles of sound 

lending 1) safety 2) liquidity 3) Profitability and other points 

like Security, Purpose of loan , Sources of Repayment , 

Diversification of Risks 

SECURED AND UNSECURED ADVANCES 

Loans and advances may be made either on the personal 

security of the borrower or on the security of some tangible 

assets. The former is called unsecured or clean or personal 

advance and the latter is called secured advances. 

UNSECURED ADVANCES 

The unsecured advances are granted to customers of 

integrity with sound financial backing , high business 

reputation and capacity to manage the business. 

Confidence in the borrower is the basis of unsecured 

advances. A banker pins his faith on the ability and 

willingness of the borrower. The confidence is judged by 

three considerations 1) Character 2) Capacity 3) Capital 

References :- 

1) ICFA University Press – Banking Operations -2007 

– ISBN:81-7881-609-1. 

2) E. Gordon , K. Natranjan „Banking Theory , Law 

and Practice‟ Himalaya Pub. 14th Edition. 

3) Shekhar K. C., „Banking Theory and Practice‟, 

Vikas Publishing House, New Delhi. 

4) Gupta V., „E-Banking Global Perspective‟, ICFAI 

University Press. 

5) Bhattacharya K., „Risk Management in Indian 

Banking‟, Himalaya Publishing House. 

6) Bhasin T. M., „E-Commerce in Indian Banking‟, 

Authopress Publications, New Delhi. 

7) Tanman M. L., „Banking, Law and Practice in 

India‟, India Law House, New Delhi. 

8) Web Site www.banknetindia.com 

9) Web Site www.sbi.com 

10) Web Site www. rbi.com 

11) www.financeindiamart.com 

As per the formula evolved by Dr. C. B. Memoria 

FUTURE OF BANKS 

The banks in India have to trace on following points in 

future to cope with the global challenges 

1) Customer Service 

2) Online banking with core banking facility 

3) ATM locations at prominent places 

4) Security in Financial Transactions 

5) Safe Deposits 

6) Use of Advanced tools and software‟s to provide 

service to customers 

7) Regulatory framework for compliance 

8) Need for asset – liability Management 

9) Different types of products and services offered by 

banks 

10) Chaining nature of banking operations. 

11) New channels to provide banking services like 

Phone banking, Tele banking, Internet Banking 

and Mobile Banking 

Conclusion 

The Banking in India is becoming the major player in India 

economy by which the strict policies to safeguard the assets 

of the customer in terms of deposits , lockers and other 

facilities and services provided by the banks in India. The 

Banks have sustain their profits in present recession by 

which it is implied that the banks can further use advance 

technology to serve the customers. The paper highlights the 

need and basic concepts of the banks with future scope in 

terms of reaching to the large masses. 


Annexure 

Formula evolved by Dr. C. B. Memoria 

1) Character + Capacity + Capital = Safe Credit 

2) Character + Capacity + Insufficient funds = Fair credit risk 

3) Character + Capacity – Capital = Limited Success 

4) Character + Capacity- Impaired Character = Doubtful Credit risk 

5) Capital + Capacity – Character = Dangerous risk 

6) Character + Capital – Insufficient capacity = Fair credit risk 

7) Character + Capital – Capacity = Inferior Credit Risk 

8) Character – Capital – Capacity = Fraudulent one 


Mithila State 

Dr. Prem Chandra Thakur, Deoram, Darbhanga, Bihar, India-84723 

Mithila is Ancient State of Indo Aryan Civilization. 

Mithila is a part of religious book Brihad Vishnu Puran the 

heading of Mithila Mahatmas Schlock it has been said ; 

Ganga him battoumadhe panchadasantary, 

termuktiritikhayaatodes param pabanah, 

kosikittu samaramya Gandakimadhigam bou, yajnani 

chaturbisat bayayam panikitith. 

Ganga prabhamaaram yabdaumbanam, vistar khodsah 

prokato desas Kulanandan, 

Mithila nam nagri namastu lokvistrut, panchvi karno punya 

vikhyata jogattitai” 1 

Meaning there by Mithilas East Koshi River West Gandki 

(Sadanira)River, South Ganga River & North Himalaya 

Mithila are in 25 0 to 28 0 & 26 0 to 52 0 latitude, 84 0 to 56 0 

akhash and 86 0 to 46 0 desanter 2 (Dr. Perm Chandra Thakur 

Mithila ki Siksha Avam Sanskrit ke vikash Me Darbhanga 

raj kaa yogdan (2002) Unpublished thesis 

L.N.M.U,Darbhanga, PP216-221). 26 District of North India 

& 16 District of Nepal were under Mithila .This time 28% 

of Nepal Population and 6% of India Population are under 

Mithila. Maithili is Language of Mithila; about 200 million 

people speak this language. Maithili is second language of 

Nepal government and also constitute language of India 

government 3 (Anthropology of Ancient Hindu Kingdoms: A 

Study in Civilization; Author Makhan Jha page 113) Mithila 

was more valuable state in Ancient history. 

Brahma stablist sristi. Brahama is main source of sristi. 

Brahma had ten sons, named were Marichi, Atari, Angara, 

Pulsate, Pulah, krait, Vrig, Vasist, Dax and Narad. Marichi 

was First son of Brahma, his son was Kashyap. Kashyap‟s 

son was Vevashawan and Vevashawan son was Vavashawat 

Manu. He was First king of Aryan origin. His son was 

Icxabhaku. He was king of Ayodhiya. He had hundred 

sons first four were kushi, Vikushi, Dandak& Nimi. Kushi 

was king of Ayodhiya. Vikushi went west side, Dandak 

went South side, Nimi went North site with Goutam 

Rahugan 4 (Dr. Perm Chandra Thakur Mithila ki Siksha 

Avam Sanskrit ke vikash Me Darbhanga raj kaa yogdan 

(2002) Unpublished thesis L.N.M.U.Darbhanga, PP216- 

221). 

Nimi son was Mithi, he stabilist a state on his name Mithila. 

His Kingdom was Janakpur (Nepal) 5 (Vedavayas, Vishnu 

Puran Second Part, Religious book publish (1965) in Gita 

press Gorakhpur, PP361-368). Once Nimi distracted mind 

the request vashishth to have a Yojana so that he could 

reach swarag with the body because Kaliyugls time 

cycle had been short. Vashisth become angry committed 

that Indra before him for the Yojana and hence he was going 

to Indra. 

Nimi thing that Kaliyugs time cycle is short. So absence of 

vashishtha the Yojana is held with appointing Gautam as 

Acharya. Gautam Started Yojana 6 (Vedavayas, Vishnu 

Puran Second Part, Religious book publish (1965) in Gita 

press Gorakhpur, PP361-368). When vashistha returned 

from Indra‟s place his family informed him the matter. 

Vashishtha reached near Nimiya‟s place both had hot talks 

& taking water in hand vashishta gave curse that “Video 

Bhava” 7 ( Vedavayas, Vishnu Puran Second Part,Religious 

book publish (1965) in Gita press Gorakhpur, PP361-368). 

Nimi say that this is not justify curse, so I am also giving 

curse you. With the curse of Vashistha Nimi died. 

Vashishtha born through Urvashi, so now called Mitravarun. 

The death of Nimi after he was asked to remain as hair 

above the eyes & seers churned out a son of his dead body 

who was hence called Mithi” 8 (Vedavayas, Vishnu Puran 

Second Part, Religious book publish (1965) in Gita press 

Gorakhpur, PP365-366). He born without father‟s so he 

called “Janak” 9 (Vedavayas, Vishnu Puran Second Part, 

Religious book publish (1965) in Gita press Gorakhpur, 

PP291-308). 

He born thought crush of dedbody so he called “Mithi”, he 

born without body so he called “Videh” 10 (Vedavayas, 

Vishnu Puran Second Part, Religious book publish (1965) in 

Gita press Gorakhpur, PP111-113) All the king of Janak 

dynasty called “Videh, Janak, Mithi”. 56 kings ruled on 

Mithila of this dynasty 11 (Vedavayas, Vishnu Puran Second 

Part, Religious book publish (1965) in Gita press 

Gorakhpur, PP203-208) Siradhawaj was 17 th king of this 

dynasty 12 (Tulsi Das, Ramcharitmanas, Religious book 

publish (1965) in Gita press Gorakhpur, PP261-268). His 

daughter was Sita. Sita is famous of her character, she called 

also Janaki, Videhi & Sita. She married with Ram. Ram 

was king of Ayodhiya & son of Dasrath. Sita-Ram is God of 

Hindu. Ram killed Raawan. Raawan was king of Sri Lanka. 

The list king of Janak dynasty is as under :-( 6000-497BC). 

Nimi 

Mithi 

Vdvasu 

Nandibardham 

Suket 

Devrat Brihdath 

Mahavirya 

Sughriti 

Dhiritketu 

Harya 

Maru 

Pratipak 

Kritirath 


Dermith 

Visrut 

Mahadhritka 

Kriti Raj 

Maha Roma 

Swarm Roma 

Harsh Roma 

Siradhwaj 

Kushadhawaj 

Kritadhawaj 

Kesidhawaj 

Bhanuman 

Shatdhum 

Shuchi, 

Sandaraj 

Udharketu 

Anj 

Purujit 

Arishtnemi 

Srataya 

Supashank Chitrath 

Chemdhika 

Samrath 

Rabtyarath 

Upgru 

Upgupta 

Basabnant 

Yuyudh 

Subhasan 

Shrut 

Jay 

Vijay 

Ritu 

Shunak 

Bithabbya 

Dhrit 

Bahulak 

Kriti karal 

Mahabansi 13 

(Vedavayas, Vishnu Puran, Religious book publish (1965) 

in Gita press Gorakhpur, PP361-367). Kriti karal Janak was 

present in Mahabharat battle with kauravas sided but 

Mithilas Matsya Janpad king Virat had sided with Pandavas. 

His capital was Viratnagar (Nepal).Pandav spent this 

secretly period in viratnagar 14 (Vedavayas, Mahabharata, 


PP169-170). The last king of Janak dynasty Mahabansi was 

bad character 15 (Ram saran Sharma Publish Patna (1971) 

PP108 History of India). So people died him and stables 

Panchayati Raj the origin of Panchayati Raj called 

“Vajjisangh” 16 (Ram saran Sharma Publish Patna (1971) 

PP106 History of India) 5 Th BC TO 4 Th century. 

Vajjisangh was first “Gantantra” in world one shloka is in 

Brihad Vishnu puran 17 (Ram saran Sharma Publish Patna 

(1971) PP106 History of India) . 

The sloka has been said “Mithila Tairbhuhischa vaidehi, 

Nimikananm jnakhestra kripapitha swarn langal paddhatiah. 

Janaki Janmbhumiseha nitpeasha vikalmasha Ramanandkari 

vishvabhavini nityamangala” 18 (Vishnu Puran Second Part, 


PP210) . Janak dynasty vajjisangh ruled on Mithila. The 

capital of vajjisangh was vaishali (India). 

The king of Magdhag Ajat shatru attack on vajjisangh and 

chapacterd on Mithila 19 (Ram saran Sharma Publish Patna 

(1971) PP106 History of India). Now Mithila ruled under 

Morya dynasty 20 (Ram saran Sharma Publish Patna (1971) 

PP106 History of India) .Sung dynasty, Gupta dynasty and 

Harsh also ruled on Mithila. 

5 th &8 th century 

Jaywardhan raja salhesh ruled on Mithila his capital was 

Sirha (Nepal) Tibetans attack on Raja Salhesh he 

successfully defended Tibetans 21 (Lok Gatha, Urvashi 

prakashan, Patna (2009) PP12 Raja Salhesh history). After 

Salhesh Gopal attack on Mithila and began to rule on 

Mithila. Goapl was pal dynesty 8 th to 9 th century pal dynasty 

ruled on Mithila 22 (Dr. Upendra Thakur, PP22 Mithilak 

Ithas). 

This list king of pal dynasty (8th to 9 th ) century. 

Gopal (750-770) 

Dharmapal (770-810) 

Devapal (810-850) 

Shurapal/Mahendrapal (850 - 854) 

Vigrahapal (854 - 855) 

Narayanapal (855 - 908) 

Rajyapal (908 - 940) 

Gopal II (940-960) 

Vigrahapal II (960 - 988) 

Mahipal (988 - 1038) 

Nayapal (1038–1055) 

Vigrahapal III (1055–1070) 

Mahipal II (1070–1075) 

Shurapal II (1075–1077) 

Ramapal (1077–1130) 

Kumara pal of Bengal (1130–1140) 

Gopal III (1140–1144) 

Madanapal (1144–1162) 

Madanpal was weak king he defected by Adishur Savant 

Sen. Savant Sen was first king of Sen Dynasty in Mithila. 

Sen Dynasty ruled on Mithila 10 th to 11 th century. The list 

king of sen dynasty 10 Th to 11 th century. 

Vijay Sen (1096-1159 AD) 

Ballal Sen (1159 - 1179 AD) 

Laxman Sen (1179 - 1206 AD) 

Vishvarup Sen (1206 - 1225 AD) 

Keshab Sen (1225-1230 AD) 23 


(Jatasankar jha PP59 Beginning of modern education in 

Mithila). Laxman Sen was last king of Sen dynasty. He 

defeated by Nandev. Nandev began to rule on Mithila. His 

capital was Nanpur (India). Nandev was karnat dynasty. He 

was south Indian Brahamin. Karnat Dynasty ruled on 

Mithila 1097 to 1325. The list of king karnat dynasty; (1097 

to 1325). 

Nandev (1097to1184) 

Gangdev (1184to1225) 

Nar Shingh dev (1225to1240) 

Shakti Shingh dev (1240to1252) 

Hari Shingh dev (1252-1325) 

Hari Shingh dev was last king of karnat dynesty he defeated 

by Tuglak and went to Himalaya 24 (A.A.Macdorald PP 69 

History of Sanskrit literature). After this happened 

kameshwar Thakur appointed by Tuglak as Mithilas king 25 

(Dr. Upendra Thakur PP66 Mithilak Ithas). He was prist of 

Hari Shingh dev. He was oniyar dynasty. This dynasty ruled 

on Mithila 1325 to 1526. 

The list king of Oniyar dynesty (1325 to 1526). 

Kameshwar Thakur (1325 to 1353) 

Bhojeshwar Thakur (1353-1360) 

Ganeshwar Thakur (1360-1361) 

The death of Bhogeshwar Thakur Ganeshwar Thakur 

become king but a Muslim feudal Aslam conspiratorially 

stabbed him with a dagger in 1361. The son of Ganeshwar 

Thakur kirti Shingh went to Jounpur and brings army for 

help Aslam and Ganeshwar killed in ensuing battle. Now 

kirti Shing become king 26 (Dr. Upendra Thakur PP32 

Mithilak Ithas). 

Kirti Shingh (1361-1412) 

Bhav Shingh (1412-22) 

Dev Shingh (1422-28) 

Shiva Shingh (1428-31) 

Shiva Shingh challenge the authority of Tuglak Empire 

Abraham Tuglak attack on Mithila in the battle Shiva Singh 

death. Shiva Shingh wife Lakhiya Devi ruled (1431-50) in 

favour of Padam Shingh (1431-50) Padam Shingh died 

issueless in early age 27 (Dr. Upendra Thakur PP25 Mithilak 

Ithas). His wife queen Bishwas Devi ruled in favour of 

child Hari Shinghdev (1450-55) 

Nar Shingh dev (1455-59) 

Dhir Shingh dev (1459-80) 

Bhairav Shingh dev (1480-1515) 

Rambhadra Shingh dev (1515-24) 

Laxminath Shingh dev (1524-26) 

Sikandar Lodi attack on Mithila in 1526. Laxminath Shingh 

dev killed in battle 28 (Dr. Upendra Thakur PP44 Mithilak 

Ithas). After the victory on Mithila Allaudin appointed king 

of Mithila he was son in Law of Sikandar lodhi. 31 year‟s 

Muslim ruled on Mithila in this period large number of 

Maithils were converted to Islam, many important book 

were born man were fear so this period was anarchy and 

jungle raj prevailed. When Akbar comes on throne of Delhi 

1557 he made king of Mithila Mahesh Thakur 29 (Dr. 

Upendra ThakurPP29 Mithilak Ithas) He was first king of 

Khandwa dynesty. His capital was Sarisab-Pahi Rajaram 

(India). 

The list of king Khandwa dynesty: (1557 TO 1947). 

Mahesh Thakur (1557-67) 

Gopal Thakur (1567-71) 

Hemangat Thakur (1571-73) 

Parmanand Thakur (1573-83) 

Shumbankar Thakur (1583-1617) 

Purshotam Thakur (1617-23) 

Narayan Thakur (1623-42) 

Sundar Thakur (1643-1670) 

Mahenath Thakur (1670-92) 

Narpati Thakur (1692-1703) 

He transfers his capital Rajgram to Darbhanga 30 (Dr. 

Upendra Thakur PP92 Mithilak Ithas). When Narpati 

become old he went to kashi handing over the kingdom his 

beloved son like himself, Raghav Shingh Bahadur (1703- 

1739). Raghav Shingh was a great Warrior and an able 

administrator, winner several wars 31 (Jatasankar jha PP65 

History of Mithila). He added to the glory of Mithila in 

1739. 

Vishnu Shingh (1739-44) 

Narendra Shingh Bahadur (1744-60) 

Pratap Shingh Bahadur (1760-76) 

Madhav Shingh Bahadur (1776-1807) 32 

(Jatasankar jhaPP95 History of Mithila). In this time British 

had holds their fact in India. British did not like any 

powerful ruler in Mithila and hence, they made several king 

at many places.People of Mithila were so simpleton they 

could not understand that conspi. 

Chhatra Shingh Bahadur (1807-1839) 

Chhatra Shingh Bahadur became king in 1807 he help to 

British government in Nepal attack so British government 

called Maharaja Dhiraj 33 ( Jatasankar jha PP115 History of 

Mithila). Maharaja Rudra Shingh Bahadur (1839-1850) 

Maheshwar Shingh Bahadur (1850-60) 

Maheshwar Shingh Bahadur died 1860 AD. That time his 

son Laxmishwar Shingh was a minor; hence the British 

Govt put Darbhanga Raj under the „court of wards‟.As a 

bictim to the British conspiracy administrative language in 

place of the mother–togue Maithili.34 (Jatasankar jha PP55 

History of Mithila). When Laxmishwar Shingh Bahadur 

became 21 years old then he became king (1860-1898). 

Rameshwar Shingh Bahadur (1898 to 1929). 

Kameshwar Shingh (1929 to 15 Augest 1947) 

Maharaja Kameshwar Shingh Bahadur ruled 1929 to 15 

Augest 1947 till independent of India after independents 

India he was member of constituent assembly 1947 to 1952, 

Member of Parliament 1952-1962. He deth 8 Oct 1962 35 


(09.10.1962, Daily News, Aryavart Dainik) .After some 

year‟s jamadari too was abolished and Separate Mithila 

state continued since thousands of years was merged in 

Bihar due to the British conspiracy, while separate Bihar 

was never in the history. 1912 Bihar carved out of Bengal, 36 

(23.03.1912, Daily News, Bengal gajat). Orissa curved out 

1936 of Bihar 37 (18.07.1936, Daily News, Bengal gajat). 

Jharkhand carved out of Bihar 2000, 38 (16.11.2000, Daily 

News, Dainik Jagaran).But still Mithila is under the state of 

Bihar. 

References: 

1. Vedavayas, Vishnu Puran publish (1965) in Gita press 

Gorakhpur. 

2. Dr. Perm Chandra Thakur Mithila ki Siksha Avam 

Sanskrit ke Vikash Me Darbhanga Raj kaa yogdan (2002) 

Unpublished thesis L.N.M.U.Darbhanga. 

3. Makhan Jha Anthropology of Ancient Hindu Kingdoms: 

A Study in Civilization. 

4. Tulsi Das, Ramcharitmanas, publish (1965) in Gita Press 

Gorakhpur. 

5. Valmiki Ramayana , Publish (1965) in Gita press 

Gorakhpur. 

6. Ram Saran Sharma, History of India. 

7. Lok Gatha, Raja Salhesh history. 

8. A.A.Macdorald History of Sanskrit literature. 

9. Dr. Upendra Thakur Mithilak Ithas. 

10. Jatasankar jha History of Mithila. 

11. 09.10.1962, Daily News, Aryavart Dainik. 

12. 23.03.1912, Daily News, Bengal gajat. 

13. 18.07.1936, Daily News, Bengal gajat. 


Leadership to manage Emotions in Health Care 

Organizations 

Venkatesh Jeganathan, Associate Professor & Balaji Dhandapani, Research Scholar, 

School of Management Studies, Anna University of Technology, Coimbatore 

Abstract: 

The purpose of this research is to describe the relationship 

between effective leadership and the leader‟s own ability to 

manage his/her emotional state. The connection between 

leadership and emotions is detailed and evaluated, analyzing 

differences between management and leadership. By 

describing the behaviors that are known to be essential to 

successful leadership in organizations and then postulating 

the emotional links between those behaviors and 

organizational performance, it is hoped the reader will be 

able to develop a richer conceptualization of the role 

leadership plays in organizations and how emotions mediate 

leadership performance and organizational performance. 

The paper has proposed a model for defining and 

differentiating between leading and managing. Five factors 

were found to be important to the exercise of leadership. 

Key Words: Leadership, Emotional intelligence, Medical 

care 

1. Introduction: 

A discussion of the relationship between emotions and 

leadership in organizations can include many perspectives. 

We could, for example, discuss the impact a leader‟s 

emotional state has on followers. We could also include 

ideas and findings that relate to subordinates‟ emotional 

states and how leaders deal with those to the enhancement 

or disadvantage of the organization. Or, we could describe 

how leaders manipulate, or use, the emotions of followers to 

serve the organization, or the leaders‟ own, purposes. In this 

paper we will describe the relationship between effective 

leadership and the leader‟s ability to manage her/his own 

emotional state. But, we must begin with a description and 

definition of leadership itself. The state of the leadership 

literature is such that each author‟s perspective on 

leadership determines the definition discussed, and this 

definition is rarely described or differentiated from other 

definitions. The literature, for example, is strewn with 

leadership concepts including the following: “strategic 

leadership” (Finklestein and Hambrick, 1996), 

“transformational leadership” (Burns, 1978), 

“transcendental leadership” (Cardona, 2002), “full range 

leadership” (Avolio and Bass, 2002), “servant leadership” 

(Greenleaf, 1977), “charismatic leadership“ (Conger,1989), 

“primal leadership” (Goleman et al., 2002), even “rebel 

leadership” (Downton, 1973), to name a few. Each of these 

leadership concepts is, in a way, a special case or special 

application of leadership; but in most cases the author does 

not define the limits of the concept and/or where it does not 

apply or how it is different from other concepts of 

leadership. Many authors state the case for their brand of 

leadership as if it is the leadership concept to answer all 

questions about leadership. 

Consequently, research findings and conclusions often 

remain in dispute; and reasonable arguments may be found 

to be unreasonable or nonsensical because the reader has a 

different definition of leadership and may not even realize it. 

We end up with a kind of “Tower of Babble.” So, devoting 

some energy to defining our concept of leadership seems 

quite important. The core of the paper includes two related 

discussions. First, recent research on the behavioral 

components of transformational leadership is shared. These 

five factors that have been found in the recent research will 

be described in detail so that the reader has a clear sense of 

the types of behaviors that have been found to be integral to 

leadership performance. Since these findings are regarding 

leadership behaviors, this part of the discussion leaves out 

the topic of emotions which, of course, is the essence of the 

paper. So, the second half of the paper will describe the 

emotional or affective correlates of the five behavioral 

components. This second part of the paper is largely 

theoretical and hypothesizes how the behavioral activities of 

a leader take effect on individuals and on an organization. 

Where research does bear on the discussion, it is cited. This 

paper, therefore, has several rather lofty goals. First, to share 

a unique model for defining leadership in a way that clearly 

differentiates the concept of leadership from the concept of 

managing. The second goal is to share some recent literature 

bearing on emotions and leadership. The third goal is to 

describe the results of recently published findings regarding 

leadership behaviors. The fourth and final goal is to provide 

a theoretical perspective on how emotions link these 

behaviors to organizational performance. By describing the 

behaviors that are known to be essential to successful 

leadership in organizations and then postulating the 

emotional links between those behaviors and organizational 

performance, it is hoped the reader will be able to develop a 

richer conceptualization of the role leadership plays in 

organizations and how emotions mediate leadership 

performance and organizational performance. 

2. The Concept of Leadership: 

The connection between leadership and emotions has been 

discussed for decades, but in the past ten years the 

relationship has become clearer. Part of this clarity has come 

about through an increased ability to specify one‟s definition 


of leadership, which, as will be discussed, in the past has 

been a problem. Another contributor to the increased clarity 

regarding the relationship between emotions and leadership 

has been the ability to differentiate between management 

and leadership as separate, while equally important, 

organizational processes. In spite of this increasingly 

accepted differentiation, many authors continue to describe 

the two – leadership and managing – in the same terms; so it 

is difficult to say whether a given author is describing 

leadership or managing processes or behaviors. For a deeper 

discussion of these two processes – leading and managing – 

see Kent et al. (2001) and Kent (1999). To summarize the 

nature of this confusion consider these facts. Bass and 

Avolio (1994) describe factors that they attribute to the 

exercise of “transformational leadership.” Yet Tracey and 

Hinkin (1998) found little distinction between Bass and 

Avolio‟s (1990) leadership factors as measured in their 

Multifactor Leader Questionnaire and Yukl‟s Managerial 

Practices Survey (Yukl et al., 1990) which measures 

managing behaviors. One could wonder if the authors – 

Bass and Avolio – are describing the practices involved in 

managing or those involved in leading. Vroom and Yetton‟s 

(1973) book – Leadership and Decision Making – is devoted 

mostly to a discussion of participative management though 

the title promises a discussion about leadership and decision 

making. Blake and Mouton‟s (1964) “Managerial Grid” 

somehow turned into Blake and McCanse‟s (1991) 

“Leadership Grid”. For further examples of this confusion in 

the scholarly literature see Kent et al. (2001). To help 

alleviate this confusion, we can define leading and 

managing, and help to differentiate between them, by 

looking at them from three different perspectives. Kent 

(2003) used a model to look at the two ideas – leading and 

managing – from the perspectives of their purposes, their 

products or outcomes, and their processes. The perspective 

of purpose answers the question: why do they exist; what is 

the reason for them taking place at all. Are they natural 

phenomena (this author believes they are), and, if so, do 

they not have their respective purposes or functions in 

nature? The second perspective would describe their 

products. This perspective would specify what results they 

produce independently and separately. From the perspective 

of purpose we answer the question why, and from the 

perspective of products we answer the question what. The 

third perspective is related to process. Process tells us how 

something occurs or how it comes about. With regard to 

leadership, process should tell us how a leader behaves or 

acts. The section below will describe leading and managing 

from these three different perspectives. 

3. The Different Purposes of Leading and 

Managing: 

Kent (2003) used the above model to differentiate between 

transformational leadership and managing. That work 

provides the basis for the definitions suggested here. It has 

become fairly widely accepted, since Burns (1978) first 

suggested it, that leaders work via their impact on others‟, 

and their own, thinking and valuing. This, we should note, is 

really the first suggestion that emotions, and the affect one 

can have on those emotions, is critical to leading. The 

valuing process (creating a personal sense of worth toward a 

person, object, or idea) is both an emotional and a cognitive 

or mental function. Notice the definition of the purpose of 

managing has no such emotional correlate. These two 

distinct purposes (of leading and of managing) give us our 

first sense of the role emotions play in the key 

organizational processes of leading and of managing. 

Leading involves the creation of direction and, perhaps more 

importantly, it involves creating the motivation or will to 

pursue that direction among the organization‟s members. 

We will see later the link between emotions and this 

motivation, or will, to pursue. Managing, on the other hand, 

is primarily a cognitive or intellectual activity according to 

this definition. It has to do with evaluating various resources 

and selecting and allocating those resources for the greatest 

energy effectiveness and goal accomplishment. 

4. The Different Prospects of Leading and 

Managing: 

Kent (2003) also describes the different products that are 

associated with leading and with managing. Products speak 

to outcomes or results. Product is more measurable and 

tangible than purpose. Product may be thought of as the 

tangible realization of a purpose. On the other hand, purpose 

cannot be deduced from a given product with any certainty. 

If we see a beautifully manicured and freshly cut lawn, can 

we surmise the owner‟s purpose for cutting the lawn in such 

a fine way? Perhaps she is selling her house and wants to get 

top dollar; or perhaps she is in a personal competition with 

her neighbor. Extrapolating from the purposes stated above 

leads to the following thoughts regarding the products of 

leading: 

• The establishment of thrust toward a purpose or 

end 

• The creation of social orderliness to carry out that 

thrust 

• Higher states of behavior in terms of principles, 

values, morality, and ethics 

In sum, when leaders lead it results – in the best of cases – 

in thrust toward an end or goal, orderly or aligned pursuit of 

that goal, and higher standards of ethics, morality, etc. 

• Following the thinking presented above, the 

products of managing may be: 

• Resources, organized effort, and awareness of 

performance and progress toward goals; 

• The creation of a desired mode of working among 

people and other resources; and 

• The creation of the most energy effective way of 

dealing with the causes of events and situations in 

accomplishing a purpose tied to a particular 

situation. 

In other words, when managers manage well the results 

include the organization of resources toward the 

accomplishment of goals, a “best” way to work toward that 

goal(s), and energy efficiency. So, our definition, thus far, of 

leading – incorporating the ideas above regarding leading‟s 

purpose and products – would be: Leading or leadership is a 

process involving the creation of direction and the unified 


will to pursue it through the development of peoples‟ 

thinking and valuing. This process results in a unified thrust, 

and an orderly pursuit, toward a purpose or end. This pursuit 

is carried out via behaviors reflective of higher principles, 

values, morality, and ethics. Our definition of managing – 

incorporating the purpose and products from above – would 

be: Managing is the process of determining and comparing 

alternative uses and allocations of resources and selecting 

that alternative which is most energy effective toward 

accomplishing or producing a product or end. It results in 

the availability of resources, organized effort, measurement 

and feedback regarding progress toward goals, norms or 

rules for working together, and the determination of the 

most productive ways of solving problems and working 

together. 

5. The Processes of Leading and Managing: 

Many discussions of this topic – leadership – begin here 

with a description of leadership processes. This is the part 

where we talk about how leadership works or how 

individuals carry out this activity called leading. This is 

where we say what leaders do. We are talking here about 

those processes that are associated with the purpose and 

products of leading. We will not be talking about those 

processes associated with managing. Yukl et al. (1990) 

describe 13 different processes that create the products of 

managing and serve managing‟s purpose. We will not 

discuss those 13 processes here since our focus is on 

leadership. Rather we will focus on the processes of leading 

and their emotional content. Kent et al. (2001) performed a 

factor analysis of leaders‟ behaviors as described by 

subordinates and identified four types of behaviors in which 

leaders engage. A further analysis of the data, as described 

in Kent (2004) and Kent (2003), revealed a fifth factor. 

These factors reflect the types of behaviors in which leaders 

engage and which are observable by subordinates. These 

factors are similar to Kouzes and Posner‟s (1995) five 

factors but are behaviorally based. Kent‟s work confirms 

and extends the work of Kouzes and Posner. Kent‟s five 

factors will be discussed briefly below. 

5.1 Process One. Visualizing greatness: 

Most, these days, recognize the importance of this factor. 

Kouzes and Posner (1995) describe leaders as “gazing 

across the horizon of time, imagining what kind of future 

they would like to create.” People – employees – need to 

know where their efforts are leading if they are to put their 

heart and soul into their work; and leaders satisfy this need 

by creating a promising picture of the future for them. We 

know people will do what their mind‟s eye pictures. If 

people are to have a chance to succeed, they must have a 

picture of what their successful performance looks like and 

what it leads to. Athletes and performing artists, for example, 

try to visualize their performance in their minds prior to the 

actual performance as a way to further ensure a high level of 

quality in their efforts. Leaders attempt to instill this 

common picture in the minds of all those associated with the 

organization so that a common effort toward the “picture” 

ensues. Imagine an organization where every person 

associated with the organization actually carries around in 

their mind‟s eye a picture of the future of the organization 

and that all of these pictures are essentially identical and that 

these individuals are responding to what is now their vision 

as an athlete does to his/her vision of performance. If this 

were to occur, one might see every employee working 

toward the same thing; one might see inspired performance; 

and one might see a collective commitment to the success 

that comes from achieving the vision. 

Organizations and their managers spend a great deal of time 

and money trying to affect employees‟ level of motivation. 

They develop complex incentive schemes, special 

recognition ploys, group and team events such as picnics 

and other outings all in a vain attempt to heighten employee 

motivation and commitment. In reality, they simply have to 

unblock motivation. People will not unleash their motivated 

effort if they do not know what that effort is intended to 

create or to what it is leading. People cannot sustain their 

energy if they do not know the purpose of that sustained 

effort. Leaders know this and attempt to create a shared 

vision that is uplifting and inspiring. The vision enables 

people to focus their efforts and to prioritize their activities. 

It reminds them of the value of their work and of its 

importance to the organization and to others. It motivates, 

focuses, and creates a sense of value and significance. 

5.2 Process Two - Empowering the “we”: 

These days, it appears, leaders work through groups of 

people. Certainly individuals are important, and leaders do 

not ignore this importance. But, working through groups, it 

appears, that leaders attempt to create a greater sense of 

“we-ness” – the sense that we are all in this together, we 

need each other, we have to work together to succeed. 

Leaders try to mold a feeling of unity, of “we-ness.” 

Today‟s organizations are a bit too complex and lean to 

function with a pack of “lone rangers and their faithful 

companions” – each lone ranger working on his/her own, 

and following his/her own, instincts. Too, status distinctions 

have no place in today‟s health care organizations. This is 

often difficult for health care leaders to understand since 

their organizations are so scientifically and technologically 

based. In the past, status was determined by one‟s mastery 

of, or level, of the science or technology. These status 

distinctions carried over into all forms of organizational and 

interpersonal interaction. They created barriers to 

communications, thinking, and acting. It is difficult for 

people to feel “we-ness” when they are separated from 

others by various forms of status symbols and status-based 

organizational norms. Today‟s leader must break down 

these artificial boundaries where they are inappropriate if he 

or she is to be effective as a leader and if the group is to be 

able to deal with the complexities of today‟s organizations 

and today‟s problems. Today‟s organizations are dynamic, 

responsive, interactive, systematic, and, in the better 

situations, driven by a clear direction and focal point. Teams 

are everywhere. Some live intact for years, some come 

together to complete a project then disband. Some teams 

live together in the same department or office while others 

are virtual and separated by miles and or geographical and 

physical boundaries. The leader recognizes the fact and 

value of teams and uses them to instill direction and 


motivation. Having created this “we-ness,” leaders loosen 

the reins by giving their teams, units, or group the 

wherewithal and the authority to decide and to act. Team 

wherewithal would include sufficient competence, resources, 

team work skills, access to expertise and information, and 

clear goals and a sense of direction. Imagine a team that fits 

this description. Why would a leader not give them the 

authority to decide and to act? 

5.3 Process Three - Communicating for Meaning: 

Communicating for meaning is not the same as other forms 

of communicating. We communicate when we share facts 

and data. We communicate when we send an email to 

inform others of, say, an event. These are not examples of 

communicating for meaning. Meaning implies grasping and 

understanding the subject and its implications and 

connections to other subjects. Understanding suggests the 

ability to make fact based value judgments or choices. The 

process of communicating for meaning can only take place 

in a two-way or multi-way forum. Meaning requires a 

sharing of perceptions, a testing and reformulation of ideas 

and current understanding. Communicating for meaning 

takes effort and time. It does not necessarily require a lot of 

words. Volume, as in the number of words or the length of 

discussion, does not correlate with developing 

understanding of ideas. Bennis and Nanus (1985) give 

examples of great leaders who were highly introverted and, 

so, spoke very little. Yet these quiet, “non-communicative” 

leaders, worked on developing, and were able to achieve, 

among subordinates great understanding and commitment to 

their vision, goals, and so on. Communicating for meaning 

often involves a struggle. The struggle may take various 

forms such as: 

A struggle with one‟s self in the face of the emotions that 

may surface when others do not, say, immediately agree or 

comprehend; 

• The struggle of trying to understand what another 

person is saying when it does not fit with one‟s 

own reality; 

• The struggle involved in trying to reconcile one‟s 

own thoughts with other‟s ideas and needs; and 

• The struggle to be patient with the limited time 

required to achieve meaning or understanding. 

Trying to get things done in today‟s health care 

organizations is more difficult than it used to be. People are 

extremely busy and have many demands on them. The 

organizations themselves are often vast and, typically, 

complex. In these conditions it may seem easier to 

command people to act. But, as the wise leader knows, this 

seldom is effective. Today people must see the wisdom of 

the task and be committed to accomplishing it. Commanding 

action rarely engenders understanding and commitment. 

Leaders know that they must help others grasp the meaning 

and importance of the task. Only then are people able to 

commit to and persevere in the accomplishment of a 

difficult goal. 

5.4 Process Four - Managing one’s self: 

An important ingredient in the relationship between leaders 

and followers is trust. Trust is the result of predictability and 

emotional (and physical) safety. Leaders are predictable in 

the sense that followers know who is going to “show up” 

when the leader acts. Here are some examples of 

unpredictable behaviors that destroy trust and leadership: 

• The leader says one thing and does another 

• The leader follows one path for a while then 

switches direction 

• One day the leader is calm, cool and collected; the 

next day she is a basket case 

• The leader reacts to a problem with a solid 

problem-solving approach; the next day he reacts to a 

problem with rage 

• The leader treats a subordinate who made a mistake 

as a teacher might treat a student, latter the leader treats a 

subordinate who made a mistake in a demeaning, cruel way 

This is the kind of leader with whom subordinates never 

know they are dealing. Do they, the followers, take this path 

or that one? Who knows; it depends on which leader they 

will be dealing with – Dr Jekyl or Mr Hyde or Willy Nilly. 

Leaders need to manage their thinking, behavior and 

emotions. We are not talking about stifling one‟s self. We 

are not talking about repressing one‟s feelings or thoughts. 

We are talking about the same dynamic as an athlete might 

engage to sustain his or her focus in spite of myriad 

distractions that occur during a match, game, or meet. 

Rudolph Giulliani describes an incident in which he 

attended the funeral of a firefighter who died during 9/11. 

He was so overwhelmed with emotion that he stepped out 

and went to a place where no one would see him cry. He 

then returned to the funeral after he composed himself. He 

said he thought it would be a terrible distraction from the 

purpose of the funeral if he would have lost his composure 

in front of the others at the funeral and in front of the media. 

He did not stifle his emotion; he managed it. In our research, 

successful leaders are described by their subordinates as 

steadfast and persevering. They keep their energy at high 

levels no matter what the circumstances. They do not give 

up, waver, or equivocate. They do not change direction or 

give in to distractions. They keep their thoughts and 

emotions positive. They do not let negative thoughts or 

feelings affect their performance. These are the behaviors 

involved in managing one‟s self. 

5.5 Process Five - Care and Recognition: 

This author has had the opportunity over the years to 

address tens of thousands of leaders, managers, supervisors 

and their employees. Often I ask my audience, “How many 

of you get enough recognition for the work you do?” or 

“How many of you hear the words, „Thank you‟ often 

enough at work?” You might not be surprised to know that, 

typically, less than 10 percent of every audience raises their 

hands to indicate that they get recognized enough. When 

you see this kind of thing happen – out of an audience of, 

say, 300 people, fewer than 30 hands go up – you might 

think, “Gee, saying „thank you‟ must be a really difficult 


thing to do.” There are a few other conclusions one might 

reach from this information. Since we know that care and 

recognition is a key behavior for leaders, as described by 

their subordinates, and since fewer than 10 percent of people 

believe they get enough recognition, then, perhaps it follows 

that only about 10 percent or less of us are really good 

leaders. Or, that among leaders, this is one behavior that 

most good leaders are lacking; and that they could improve 

their leadership even more if they would concentrate on this 

very simple behavior. This is very simple stuff. Leaders 

show they care about people through the act of kindness of 

recognizing peoples‟ efforts, thanking them for their work 

and devotion, and, simply, showing interest in what they are 

doing. This is not complex nor is it difficult. It doesn‟t take 

a great deal of time. What it requires is being sincerely 

interested in something or someone other than one‟s self. It 

requires the selflessness of paying attention to someone 

else‟s interests, needs, dreams, concerns, or problems. It can 

begin with a question such as, “How are you doing?” Then 

it requires serious listening. It often ends with the kind of 

“thank you” that comes from realizing how critical this 

person‟s effort is or was to the success of the organization, 

project, or task. In one sense it might be the easiest thing a 

leader can do, yet it appears to be one of the things that 

leaders do least. 

6. The Five leader Behaviors and Associated 

Emotions: 

If our theoretical model holds, then the five types of 

behaviors discovered by Kent et al. (2001, 2004) must have 

emotional components and we would expect these emotions 

would be positive. Table I lists the items identified in the 

Kent studies that are associated with leadership behaviors 

along with their emotional correlates. We will explore these 

relationships in this section. 

6.1 Process One - Visualizing Greatness: 

This process has to do with helping followers develop a 

mental picture of the future of the organization, project, etc. 

But, it is not sufficient that the picture be simply a 

photograph to which the follower is detached. Kouzes and 

Posner (1995) describe leaders going about this process with 

“enthusiasm.” They say leaders are “contagiously excited” 

about their vision; that leaders communicate a positive and 

hopeful outlook. They say this enthusiasm and positivity 

engenders an inspired feeling in subordinates. The leader 

him or she must not only possess a mental image of what 

she/he is trying to create; she/he must share this in a positive, 

enthusiastic way. This positive energy is based on positive 

emotions such as optimism, excitement, hope and the like. 

This positive energy spreads to subordinates, or, to use 

Kouzes and Posner‟s word, these positive emotions become 

contagious. And, from our earlier discussion regarding the 

reconciliation of Purpose and Understanding, we might 

conclude that the various discussions leaders must have 

about their vision would foster the reconciliation between 

Purpose and Understanding and bring about the energy and 

commitment discussed in that previous section. 

6.2 Process Two - Empowering the “we”: 

This process involves creating in others a sense of “we,” of 

team, of togetherness and then enabling that team or unit to 

decide and act. The emotions associated with followers in 

this situation include a sense of cooperation or feeling 

cooperative vs. feeling competitive; a sense of importance as 

in: “my job is important to the others in my team and to our 

clients/patients;” mutual trust among the team members; and 

ownership for the projects or tasks they work on. The 

leader‟s own feelings must be such as to be able to down 

play her own importance in order to uplift the importance of 

the team. She must also be able to give credit to the team 

and to give up credit that may come her way because of the 

success of the team. This requires a tremendous personal 

strength and self-security. The leader must enable and cause 

the team to strive while she takes a back seat. 

6.3 Process Three - Communicating for Meaning: 

Effective communication is a two way street. A key 

ingredient in this process for leaders is the ability to listen. It 

is interesting that the more you listen to people the more 

they tell you. It is also a truism that the more one listens to 

others, the more they listen to you. I am not saying that if 

you are a good listener, people with automatically listen to 

you. But, if you want to have a chance that people will listen 

to you, you must begin by having them realize that you are 

interested in what they have to say as well. If people do not 

feel that from you, you do not have a chance of being heard 

by them. People have to want to hear you before they will 

listen to you. If you do not listen to them, why would they 

want to hear you? If you are simply communicating facts 

alone, none of this may apply. However, if you are trying to 

impart understanding and meaning then both the leader and 

follower must be listening to each other. This is hard work. 

It is often frustrating, annoying, and trying. It is easy for 

negative emotions to take over, and, hence, to destroy any 

chance of communicating for meaning and understanding. 

The more negative things become, the less listening and, 

therefore, understanding is going on. The leader must 

demonstrate patience and a positive outlook in the face of 

this negativity. This requires that both the leader‟s thinking 

and their behavior be positive as well. The leader must 

watch their own body language and keep their mind on the 

positive purpose of this interaction. 

6.4 Process Four - Managing One’s Self: 

This process involves managing one‟s own behavior, 

thinking and feelings. There are many aspects to this process. 

The leader must keep her behavior, thinking and feeling 

integrated; she must keep these all positive; and she must 

keep them aligned, or on target with, the overall vision or 

objective and aligned with the organization‟s principles and 

values. All of this must take place whether things are going 

one‟s way or not. It must take place when going uphill as 

well as going down. It must happen whether people are 

treating you well or badly. It must take place in the face of 

thousands of distractions and competing priorities. An 

interesting cultural phenomenon occurs here to help define 

the leader‟s behavior depending on the environment in 


which she/he finds himself or herself. One school of thought 

(Hochschild, 1983) suggests that the cultural context in 

which the leader performs determines the rules and 

boundaries for the feeling and expression of emotion. 

(Fineman, 2000) This idea suggests that individual 

sensations, thoughts, and feelings are labeled and displayed 

in accordance with cultural norms and mores. This would 

say that what is defined as behavior representing managing 

one‟s self would be different from one culture to another. 

An American leader might smile, wave, and say “Hi there” 

while a Russian leader would do no such thing. Yet, both 

might be rated by subordinates as high on managing one‟s 

self. In this sense the leader may serve as the cultural 

messenger and model for followers. It may be that high 

managing one‟s self reflects the best and most positive (in 

the view of the subordinates) norms and mores of the 

particular culture in which the leader finds him or herself. 

On the other hand, as a model, if the leader‟s behavior, 

thinking and feelings are dis-integrated, so will be the 

followers‟. If his/her actions are not on target with goals and 

principles, neither will followers‟. If the leader is not 

positive, how can we expect the followers to be? This 

requires a tremendous sense of self-awareness or selfobservation. 

This is work that Hochschild (1979) describes 

as emotional labor. Emotional labor is the effort put forth to 

manage, feign, repress, etc. one‟s emotions in order to 

conform to the rules that govern the expression of emotions 

in an organization. Hochschild believes this emotional labor 

takes its toll on employees and causes psychological damage. 

But Fineman (2000) asserts that emotion work “. . . helps 

keep the organization organized; when emotion 

management fails, so can the organization.” It is suspected 

that managing one‟s self may run the gamut from the 

“damaging” processes that Hochschild fears such as 

repression, etc. to more positive processes that are reflected 

in the integration of rationality and emotion that is attempted 

to be portrayed. Here neither rationality nor emotionality is 

the master or driving process. Neither interferes with the 

other, but enhances and serves the other. Nor does managing 

one‟s self suggest that the leader is emotionless. Managing 

one‟s self suggest the “appropriate” expression of emotion. 

Through self-observation and self-awareness – the 

emotional labor of leadership – the leader consciously 

manages his or her expression of feelings. Several studies 

have identified the importance of the expression of 

appropriate feelings to the success of leadership. These 

positive expressions convey a sense of competence and 

optimism to followers. 

6.5 Process Five - Care and Recognition: 

There is doing a job. Then there is “going beyond the call of 

duty.” There is the sense of “going the extra mile.” What 

makes some people put in this extra effort, while others do 

not? Does the leader make a difference? One would guess 

that in an environment where it does not matter whether a 

person works hard or not, no one would work hard. Equity 

theory (Adams, 1965) would predict this. Presumably, the 

leader has a tremendous effect on this impression – whether 

it matters if a person works hard. Even where the leader has 

little impact on the financial rewards within an organization 

such as in a state run institution, the leader does have control 

over whether employees receive other forms of recognition. 

The leader can also affect whether people feel that their 

work is important and that the organization cares how the 

work is performed. Through this process the leader provides 

encouragement and emotional rewards via recognition. To 

do this the leader must experience the value of a person‟s 

work; this enables that leader to care about the person and 

the work. The leader must pay attention to this value and 

offer thanks for it. If the leader is thankless, followers will 

become less responsive to the organization and it‟s clients‟ 

needs. As a patient I was hospitalized in a specialty wing of 

a hospital. My physician was the new head of this 

department at the time. My treatment seemed exceptional. I 

mentioned this to him, and he said he thought the staff in 

that unit was the best he had ever seen. I asked him if he had 

told them that he felt that way. He said “no, he had not.” 

Within three years he left that major hospital and moved on 

to a position elsewhere. He left the unit in shambles with 

high turnover and abysmal quality numbers. Here was a 

highly proficient surgeon with a great deal of respect for his 

staff. Yet, he couldn‟t bring himself to recognize them and 

to show his respect for them. Performance declined 

considerably as a result. Something as simple as this, saying 

thank you in a variety of ways, can make a dramatic 

difference. 

7. Conclusion: 

This paper attempted to serve several purposes. First, some 

of the literature has led to confusion through the lack of 

clarity or the commingling of ideas between leadership and 

managing. This paper attempts to clarify the definitions in 

use for this paper. As a by-product, the paper has proposed a 

model for defining and differentiating between leading and 

managing in future papers. The paper has also reviewed and 

elaborated on five factors found to be important to the 

exercise of leadership. This model was then used as the 

basis for discussion of emotions and the role they play in the 

successful exercise of leadership. To this end the paper 

attempted to create a model for understanding, and further 

studying, emotions and the role they play in leadership. 

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A Study on Noodles Buying Behaviour from Organized 

Retail Outlets in Coimbatore City 

Uma.k , Dhivya.R. , Chandrakumar.M 

Dept. of Agrl. & Rural Management 

Abstract— Food retailing in India is the fastest growing segment in 

country’s fast paced retail sector. Amongst processed cereal products 

in India, noodles constitute the largest segment in the processed food 

market and have a share of about 45 per cent in terms of output. This 

study examines the consumer buying behavior of noodles. The use of 

statistical tools such as ranking and multidimensional scaling 

technique concludes that the availability of wide range of products 

was the major factor influencing the respondents’ preference 

followed by availability of quality products, discounts and offers, 

shopping convenience, store image and post purchase satisfaction. 

Index Terms—buying behaviour, brand switching behaviour, 

noodles, transition matrix 

I. INTRODUCTION 

Retail is India‟s one of the largest industries, accounting 

for more than ten per cent of the country‟s GDP and around 

eight per cent of the employment. India has the largest number 

of retail outlets in the world. According to industry estimates, 

organized retailing in India is estimated to grow from US$ 330 

billion in 2007 to US$ 427 billion by 2010 and US$ 637 

billion by 2015. Simultaneously, organized retail which 

presently accounts for three per cent of the total market is 

likely to increase its share to 22 per cent by 2010. Organized 

retailing is projected to grow at the rate of 25-30 per cent per 

annum (India Retail Forum, 2005). 

Food retailing in India is the fastest growing segment in 

country‟s fast paced retail sector. The size of the grocery 

market in India is huge and worth Rs 4, 00,000 crore. It is 

estimated to grow from $236 billion in 2006 to $482 billion by 

2020. The penetration of organized retail is about one per cent 

in this segment. The food retail sales make up to 77 per cent of 

total retail sales (Ernst and Young, 2006). It is estimated that 

in Indian consumer shopping wallet about 35-52 per cent is 

taken up by food and groceries segment and on an average of 

Rs.2500 on food, groceries and personal care items every 

month (www.acnielsen.co.in). 

Noodles 

Amongst processed cereal products in India, noodles constitute 

the largest segment in the processed food market and have a share 

of about 45 per cent in terms of output. Growth in noodles will 

be among the fastest in the various packaged food products in 

India. Current value sales of noodles in 2005 stood at slightly 

over Rs.9 billion, with pouch instant noodles expected to 

account for more than 66 per cent of the total value sales 

(Euromonitor Report, 2005). 

The most popular brands in India are Maggi by Nestle 

and Top Ramen smoodles by Indo-Nissin Ltd. Due to increasing 

health consciousness of the consumers, Nestle introduced an 

instant noodles made of whole wheat grain flour called Atta 

Noodles. India also has a huge demand for unflavored instant 

noodles with brands like Bambino and Ching's dominating the 

market. Modern retail chains are now concentrating more on 

the development of their private labels. Understanding the 

consumers visiting the outlet, purchasing pattern, brand 

preference, etc. is imperative to formulate suitable marketing 

strategies (Jha 2007) for the promotion of noodles 

consumption. 

Objectives: 

 

 

 

To study the consumer buying behaviour of noodles. 

To examine the factors influencing the consumer 

preference towards particular brand of noodles. 

To analyze the factors responsible for brand 

switching. 

II. METHODOLOGY 

The study was confined to Coimbatore city hence 

extrapolation of the results may not be possible since there 

exists a wide difference in consumer preference, behaviour, 

and the factors like socioeconomic, demographic and 

psychographic across regions. The study area selected was the 

Food retail outlets located in Coimbatore city. So the respondents 

would be the customer of the retail outlets and for selection of 

respondents convenience sampling technique was used. Population 

defined is the active retail shoppers. The sample group will 

comprise of heterogeneous consumers numbering 120 retail 

shoppers of the Food retail outlets and interviewed personally at 

the retail outlets. 

The obtained raw data were analyzed using appropriate 

statistical techniques and categorized into tables to draw 

meaningful inferences. The analytical techniques employed in 

this study are 1. Multi Dimensional Scaling Technique for 

perception, 2. Rank based quotient technique was used to 

analyze the reasons for preferring organized retail outlet for 

purchasing food and grocery items, the motives for purchase 

of noodles, flavour preference and the reasons for changing a 

brand. The reason with highest mean score was ranked first 


and hence considered the most important reason by the sample 

consumer. 3. In the present study, Chi-square ( 2 ) test was 

used to analyze if there was any association between various 

factors that might influence the awareness and purchase 

decision of the sample consumers. 4. Markov Analysis is a 

way of analyzing the current movement of some variable in an 

effort to forecast its future movement. The number of 

respondents consuming different brands of noodles for the 

past six months (October 2007 – March 2008) and before six 

months (before October 2007) was calculated to analyze the 

brand switching behaviour of customers with respect to 

noodles. 

III. RESULTS AND DISCUSSION 

A. General Characteristics of the Respondents 

The general characteristics of respondents like age, income, 

family size, education, occupational status, etc. will have 

significant bearing on the consumer behaviour which in turn 

will influence the adoption of promotional methods and 

success of business. Age is an important factor in decision 

making regarding the purchase of noodles (Fig 1). From the 

data collected, majority of the customers visiting organized 

retail outlet were middle aged and young people so they can 

develop the promotional strategies targeting this group. As far 

as gender is concerned, female respondents constituted the 

majority (63.34 per cent) as the willingness and responsibility 

for shopping food and grocery items for the family is more 

among them. 

Based on monthly income (Fig 4), the respondents 

were categorized into four groups. 39.17 per cent of 

respondents were having monthly family income of Rs. 

20,001-30,000, followed by 24.17 percent in Rs.10, 001 to 

20,000. As the income of majority of the households was 

higher, expenditure on food items would also be higher. 

The size of the family (Fig 5) influences purchase 

decisions such as choice of brand, quantity of purchase, pack 

size. In this study the family size of the sample households 

was post stratified into smaller size, medium size and larger 

size. About half of the respondents (51.67 per cent) had less 

than or equal to four members in their family, followed by 

39.17 per cent had 5 – 7 members in their family. So in the 

organized retail outlets the stock keeping units and the 

quantity of stocks must be oriented towards the requirements 

of small and medium families. 

B. Noodles Consumption Details of the Respondents 

The customers‟ motives for purchasing the noodles 

(Table 1) for their family have significant influence in choice 

of brand, quantity and pack size purchased. The attributes viz. 

tasty food to eat was the major motive for purchasing noodles 

and was given first rank followed by easy to cook food, 

preference of children/family members and just for a change 

from the regular food items respectively. 

The details of usage pattern of noodles among the 

respondents have significant influence on the quantity 

purchased. Analysis on the quantity of purchase of noodles per 

month and preferred pack size by the households will help to 

provide stocking enough quantity and enough packets of 

different size in the shelves of the store and also to make 

estimation of the expenditure made for noodles per month. 

The quantity of purchase varied because of the availability of 

different brands in different pack sizes (Table 2) .The pack 

size purchased by the customers varied based on the 

affordability, availability, quantity of consumption, frequency 

of purchase, etc. 

About 32.50 per cent of them consumed noodles 

during evening time followed by 20 per cent consumed as 

breakfast. About 45 per cent of the respondents purchased 

320-400 grams per month followed by 480-570 grams 

(26.67%) . Because of the availability of different brands in 

different pack sizes, four categories were made. As for as 

preference is concerned, about 41.67 per cent of the 

respondents preferred 320-400 grams pack size followed by 

160-200 grams pack (27.50 %). One third purchased 480-570 

and 80-100 grams pack. So the firm can use this information in 

developing the advertisement, to assess the sales potential of 

noodles and deciding the stocking levels of stock keeping units 

of noodles. 

About 56.67 % purchased monthly once along with 

purchase of food and grocery items. Whereas frequency of 

consumption of noodles influences the quantity of purchase, 

frequency of purchase and pack size purchased. About 40.83 % 

of them consumed noodles weekly once followed by 30.83 % 

take monthly twice etc. (Fig 6) 

Chi-square test was done to examine whether there was any 

association between purchase frequency and consumption 

frequency (Table 3). It revealed that there was significant 

difference between frequency of purchase and frequency of 

consumption of noodles as majority of respondents purchased 

noodles monthly once in contrast majority of them consumed 

weekly once. 

C. Quantity Vs. Income level 

Since Chi-square test shows significant association 

between the quantity of noodles purchased per month and 

income level of the respondents as in Table 4, quantity 

consumed per month increased with income level indicates 

that income influenced the purchase of quantity of noodles in 

the family (Srinivasan et al., 2000). So the firm has to target 

middle and high income customers to promote their product. 

D. Average Monthly Food and Noodles Expenditure of the 

Respondents 

Average monthly food expenditure (per cent) and 

corresponding noodles expenditure as per cent to food 

expenditure was estimated in Table 6. This indicates that as 

income increased percentage of food expenditure to total 

income decreased which was in accordance with Engel‟s 

theory of family consumption. Also it could be found that the 

percentage expenditure for noodles to food expenditure 

increased with increase in income level which indicates that 


income influenced the purchase of quantity of the noodles in 

the family. The result could be confirmed from the study of 

Srinivasan et al., that the quantities of processed foods 

consumption was high in high income group and the total 

income of the household significantly influenced the 

expenditure incurred on the processed products. So, the firm 

has to target high income people to promote noodles product. 

E. Reasons for Preferring Particular Brand of Noodles 

The reasons for preferring particular brand (Table 10) 

was studied to know whether there was any difference in the 

influencing factors among the buyers different brands. Taste 

was ranked as first and quality as second by buyers of 

different brands (Murugananthi 2005; Padmavathy 2005), 

range of flavours Srivastav (2005) and brand name were 

ranked third and fourth respectively. So the firm has to introduce 

new range of flavours and build brand image through the marketing 

strategies among the buyers of particular brands in order to 

influence them to purchase their own. Also the availability of own 

brand in low price and offers given for it should be communicated 

in such a way that it reaches the buyers of other brands. 

F. Brand Switching Behaviour of the Respondents 

The study of brand switching behaviour of the respondents is 

important to retain the existing customers and to attract new 

customers. The Table 11 explains the number of respondents 

consuming the different brands of noodles for the past six months 

(October 2007-March 2008) and before six months (before October 

2007). The change in number of respondents during that period 

indicates that Brand X had lost nine customers during the last six 

months, while Brand Y had lost five customers in contrast Brand 

Z had gained fourteen customers. Local brands and other national 

brands had gained and lost three customers, so there was neither 

loss nor gain. 

G. Retention Probabilities 

As per retention probability given in Table 12, Brand X had 

the retention probability of 0.853 indicating 85.3 per cent of 

Brand X users were retained for the past six months, similarly 

for Brand Y it was 0.861, for local brands it was 0.500 and 

other national brands had 0.700 of retention probability of 

their customers. While Brand Z had 1.00 as retention 

probability indicating there was 100 per cent retention of the 

already existing customers. 

H. State–Transition Matrix 

The Table 13 provides the information on transition of the 

customers from one brand to another brand during period I to 

II. The five Brand Z buyers were continuously buying it. In 

Brand X there was transition of six customers to Brand Z and 

one person to local brands and two persons to other national 

brands. Similarly in case of Brand Y there was transition of 

three customers to Brand Z and two persons to local brands. 

While in rest of the brands also there was transition of some 

customers to other brands during the past six months. 

I. State–Transition Probability Matrix 

The table 14 provides the information on transition 

probability of the customers from one brand to another brand 

during period I to II. 

Brand X had retained 85.3 per cent of its customers while it 

had lost 9.9 per cent of its customers to Brand Z, 1.6 per cent 

to local brands and 3.2 cent to other national brands. Brand Y 

had retained 86.1 per cent of its customers while it had lost 8.3 

per cent to Brand Z and 5.6 per cent to local brands. In case of 

local brands the retention percentage was 50 while it had lost 

34 per cent to Brand Z and 16 per cent to other national 

brands. In case of other national brands there was 70 per cent 

retention while it had lost 30 per cent to Brand Z. 

In case of Brand Z there was 100 per cent retention of the 

customers and there was no loss but there was gain of 9.9 per 

cent customers from Brand X followed by 

8.8 per cent from Brand Y, 34 per cent from local brands and 

30 per cent from other national brands. So the firm should 

adopt suitable marketing strategies to continuously retain the 

existing customers and to attract more new customers for its 

brand. 

J. Factors Influencing the Respondents to Change the 

Brand 

The study on the factors influencing the customers to change 

their brand in Table 15 helps the firm to be cautious and make 

necessary measures in order to retain the existing customers 

and also to attract new customers. So the firm should pay 

attention on the above discussed factors in order to retain 

existing customers and attract new customers for their brand 

(Srivastav 2005). 

IV. CONCLUSION 

The general characteristics of respondents like age, income, 

family size, education, occupational status, etc. will have 

significant bearing on the consumer behaviour which in turn 

will influence choice of brand, quantity of purchase, pack size 

etc 

Any firm has to target middle and high income customers to 

promote food product. Also the firm has to promote their 

noodles brand not only as children food but also as family 

food. The firm has to communicate the nutritious aspects of 

noodles and also introduce new flavours in order to increase 

the frequency of consumption of noodles among the 

consumers. Availability of wide range of products was the 

major factor influencing the respondents‟ preference followed 

by availability of quality products, discounts and offers, 

shopping convenience, store image and post purchase 

satisfaction. Above all, this kind of consumer study would 

help the retail outlets in maintaining the stock keeping units 

and the quantity of stocks, the adoption of promotional 

methods and success of business. 

In order to utilize immense market potential in food 

retail, companies need to develop specific marketing strategies 

and action plans taking into account the complex set of factors 

that influence consumer behaviour. 


% of Respondents 

Percentage of Respondents 

V. TABLES AND FIGURES 

Fig 6. Frequency of Purchase and Consumption 

Fig 1. Age of the Respondents in Years 

60 

50 

41-50 

23% 

51-60 

9% 

21-30 

28% 

40 

30 

20 

10 

0 

Once/ Twice a Monthly twice Monthly once Occasionally 

week 

Frequency 

Purchase 

Consumption 

31-40 

40% 

80 

Fig 8. Preferred Place of Purchase 

Fig 3. Occupation of respondents 

60 

Business 

9% 

40 

Government 

sector 

21% 

Private 

sector 

43% 

20 

0 

Organized 

retail outlet 

Local grocery 

store 

Bazaar street Departmental 

stores 

Other 

supermarket 

Place of Purchase 

Food and grocery items 

Noodles 

Home 

makers 

27% 

Fig 4. Monthly Income in Rs. 

>40,001 

12% 

< 10,000 

8% 

30,001-40,000 

18% 

10,001-20,000 

24% 

20,001-30,000 

38% 

Fig 5. Family Size of the Respondents 

More 

than 8 

9% 

5 to 7 

39% 

Less 

than 4 

52% 


Table 1. Motives for Purchasing Noodles (n = 120) 

S.No Motives Mean score Rank 

1. Tasty food 91.45 I 

2. Easy to cook 81.24 II 

3. Preference of children/family members 41.86 III 

4. Just for a change 35.41 IV 

Table 2. Consumer buying behaviour of Noodles 

S.No Particulars No. of respondents Percent 

Usage Pattern of Noodles 

1. Evening food 39 32.50 

2. Breakfast 24 20.00 

3. Whenever needed 20 16.67 

4. Holiday food 18 15.00 

5. Dinner 15 12.50 

6. Special occasion food 4 3.33 

Total 120 100.00 

Quantity of Purchase of Noodles (Quantity in grams/ month) 

1. 80-100 4 3.33 

2. 160-200 19 15.83 

3. 320-400 54 45.00 

4. 480-570 32 26.67 

5. >570 11 9.17 

Total 120 100.00 

Preferred Pack Size (grams)of the Respondents 

1. 80-100 14 11.67 

2. 160-200 33 27.50 

3. 320-400 50 41.67 

4. 480-570 23 19.16 

Total 120 100.00 

Table 3. Purchase Frequency Vs. Consumption Frequency 

A. Consumption frequency 

S.No Purchase frequency Twice a week Weekly once Monthly twice Monthly once Occasi 

onally 

Total 

1. Weekly once 6 9 0 0 0 15 

2. Monthly twice 3 26 2 0 0 31 

3. Monthly once 0 14 35 19 0 68 

4. 

Occasio 

0 0 0 0 6 6 

nally 

Total 9 49 37 19 6 120 

(χ 2 = 122.92, Table value = 21.026 df = 12 Significant at 5 % level) 

S.No 

Quantity 

(grams/ month) 

Table 4. Quantity Vs. Income level 

Income (Rs.) 

< 10,000 10,001-20,000 20,001-30,000 30,001-40,000 >40,001 

1. 80-100 3 1 0 0 0 4 

2. 160-200 5 12 2 0 0 19 

3. 320-400 1 9 35 6 3 54 

4. 480-570 0 7 9 12 4 32 

5. >570 0 0 1 3 7 11 

Total 9 29 47 21 14 120 

(χ 2 = 116.681, Table value = 26.296 df = 16 Significant at 5% level) 

Total 

Table 6. Average Monthly Food Expenditure of the Respondents 


S.No 

Income (Rs.) 

Average monthly food expenditure to total Average monthly noodles expenditure to food expenditure 

income (per cent) 

(per cent) 

1. < 10,000 28.27 0.83 

2. 10,001-20,000 25.37 0.95 

3. 20,001-30,000 23.08 0.97 

4. 30,001-40,000 19.64 1.02 

5. >40,001 15.34 1.32 

Table 7. Decision Makers in Purchase of Noodles 

S.No Decision maker No. of respondents Percentage to total 

1. Wife 52 43.33 

2. Husband 11 9.20 

3. Wife and Husband 16 13.33 

4. Children 34 28.33 

5. All 7 5.83 

Total 120 100.00 

Table 8. Reasons for Preferring Organized retail outlet for Regular Purchase (n =86) 

S.No B. Reasons Mean score Rank 

1. Availability of wide range of products 97.28 I 

2. Availability of quality products 84.68 II 

3. Discounts and offers 67.42 III 

4. Shopping convenience 48.44 IV 

5. Store image 34.67 V 

6. Post purchase satisfaction 17.44 VI 

Table 9. Brand Purchased Presently by the Respondents (n =120) 

S.No Brand No. of respondents Percentage to total 

1. Brand X 52 43.33 

2. Brand Y 31 25.83 

3. Brand Z 19 15.83 

4. Other national brands 10 8.34 

5. Local brands 6 5.00 

6. Not specific about brands 2 1.67 

Total 120 100.00 

Table 10. Reasons for Preferring Particular Brand 

S.No 

Reasons 

Buyers of different brands 

Mean score 

Rank 

1. Taste 99.03 I 

2. Quality 88.83 II 

3. Range of flavours 80.55 III 

4. Brand name 70.95 IV 

5. Pack size 59.02 V 

6. Availability in required time 51.53 VI 

7. Attractive package 38.06 VII 

8. Shelf life 30.18 VIII 

9. Price 19.41 IX 

10. Promotions and Offers 12.30 X 

Table 11. Brand Switching Behaviour of the Respondents (n =118) 

Change during the period 

No. of consumers 

Brand 

No. of consumers during period I 

S.No 

Gain 

Loss 

during period II 

1. Brand X 61 0 9 52 

2. Brand Y 36 0 5 31 

3. Brand Z 5 14 0 19 

4. Local brands 6 3 3 6 

5. Other national brands 10 3 3 10 

Total 118 20 20 118 

Table 12. Retention Probabilities (n =118) 


S.No 

Brand 

No. of consumers during period No. of consumers No. of consumers Probabilities of 

I 

lost 

retrieved 

retention 

1. Brand X 61 9 52 0.853 

2. Brand Y 36 5 31 0.861 

3. Brand Z 5 0 5 1.000 

4. Local brands 6 3 3 0.500 

5. Other national brands 10 3 7 0.700 

Table 13. State–Transition Matrix (n =118) 

S.No 

Period II 

Other national 

Brand X Brand Y Brand Z Local brands 

brands 

Period I 

1. Brand X 52 0 6 1 2 

2. Brand Y 0 31 3 2 0 

3. Brand Z 0 0 5 0 0 

4. Local brands 0 0 2 3 1 

5. Other national brands 0 0 3 0 7 

Table 14. State–Transition Probability Matrix (n =118) 

S.No Brand Brand X Brand Y Brand Z Local brands 

Other national 

brands 

1. Brand X 0.853 0 0.099 0.016 0.032 

2. Brand Y 0 0.861 0.083 0.056 0 

3. Brand Z 0 0 1.000 0 0 

4. Local brands 0 0 0.340 0.500 0.160 

5. Other national brands 0 0 0.300 0 0.700 

Table 15. Factors Influencing the Respondents to Change the Brand (n =120) 

S.No Reasons Mean score Rank 

1. Non availability of the brand of purchase 95.35 I 

2. Taste of other brand was good or better 88.45 II 

3. New offers given to other brand 68.20 III 

4. Price of other brand was lower 59.27 IV 

5. Trial pack of new brand in the market 41.06 V 

6. Advertisement 29.63 VI 

7. Peer group suggestion 17.97 VII 

*** 


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Coimbatore. 


Manage Global Competitiveness through Knowledge 

Management 

R.Yuvaraj, Dr.G.Ravindran, Karpagam University – Coimbatore, India 

 

Abstract— Due to globalization there is a rapid change 

in technology. Many organizations have to meet challenges in 

order to survive. Only in some organizations they have started 

the creation and utilization of Knowledge-base of their system 

and so on. Knowledge Management is nothing but a practice of 

discovering innovations for a community by studying its people, 

Processes and Tools. Thus the Knowledge Management process 

has attracted many organizations both by industries and 

educational institutions. 

Knowledge Management is nothing but the creation, 

storage and collaborative sharing of employee information within 

the business environment. Through sharing and collaboration, 

organizations efficiency, productivity and profitability is 

enhanced. These are mainly supported with advanced 

technological tools and methods. This is nothing but a process of 

transforming information and knowledge. Knowledge 

management initiatives focus on identifying knowledge; clarify it 

in such manner that it can be shared with others in a formal 

manner. This helps the organization to leverage its value 

through reuse. Through a supportive organizational climate with 

latest information technology in hands any organization can 

bring its total memory and knowledge to bear upon any problem 

at any point of time. For organizational success, Knowledge is as 

a form of capital and must be exchangeable within in employees. 

Knowledge evolves over time with experience, which 

puts connection among new situations and events in context. 

Knowledge is nothing but information in action. It is broadly 

classified into Tacit and Explicit Knowledge. Mainly Explicit 

knowledge deals with objective and technical knowledge, whereas 

tacit knowledge deals with the domain of the subjective and 

experimental learning. Knowledge management is a managerial 

activity which develops transfers, transmits stores and applies 

knowledge, as well as providing the members of the organization 

with real information to react and make the right decisions, in 

order to attain the organizational goals. Effective Knowledge 

management can help industries to accumulate core knowledge, 

build corporate intelligence and gain a competitive edge. 

Key Words: Globalization, Knowledge sharing, Talent-Retention 

D 


ue to globalization there is a rapid change in technology. 

Many organizations have to meet challenges in order to 

survive. Only in some organizations they have started the 

Author: R.Yuvaraj. M.B.A, M.Phil, is currently pursuing Ph.D- PT in 

Karpagam University, Coimbatore, India. PIN: 641 021. 

Co-Author: Dr.G.Ravindran, Ph.D is currently the Research guide for the 

author and working as Assistant Professorin T.K. Govt Arts College, 

Viruddhachalam, Cudallore, India. PH-+91 98422 96728 

creation and utilization of Knowledge-base of their system and 

so on. Knowledge Management is nothing but a practice of 

discovering innovations for a community by studying its 

people, Processes and Tools. Thus the Knowledge 

Management process has attracted many organizations both by 

industries and educational institutions. 

Knowledge Management efforts have a long 

introduction, that includes on-the-job training, apprenticeship 

training, corporate libraries, professional training and 

mentoring programs. In recent days, with the technological 

growth with the usage of computers in late 20th centuries 

Knowledge base has been introduced. In 1999, the term 

personal knowledge management was introduced which refers 

to the management of knowledge at the individual level. 

Knowledge management programs can result with high 

benefits for both individual and also for organizations, if they 

are purposeful, concrete and action oriented. 

Knowledge Management is nothing but the creation, 

storage and collaborative sharing of employee information 

within the business environment. Through sharing and 

collaboration, organizations efficiency, productivity and 

profitability is enhanced. These are mainly supported with 

advanced technological tools and methods. This is nothing but 

a process of transforming information and knowledge. 

Knowledge management initiatives focus on identifying 

knowledge; clarify it in such manner that it can be shared with 

others in a formal manner. This helps the organization to 

leverage its value through reuse. Through a supportive 

organizational climate with latest information technology in 

hands any organization can bring its total memory and 

knowledge to bear upon any problem at any point of time. For 

organizational success, Knowledge is as a form of capital and 

must be exchangeable within in employees. 

Knowledge management discipline has been 

gradually moving towards academic area. First there was trend 

towards higher co-operation among the teaching professionals, 

particularly there has been in single-authored publications. 

Secondly, the role of practioners has been changed. Their 

contribution has been drastically reduced as per the research. 

Mainly Knowledge management is based on 3 aspects namely, 

Techno-Centric (Focused on technology that 

enhances Knowledge Sharing) 

Organizational (Focused to facilitate best 

knowledge processes) 

Ecological (Focused on interaction with people, 

knowledge and environmental factors) 


Knowledge evolves over time with experience, which 

puts connection among new situations and events in context. 

Knowledge is nothing but information in action. It is broadly 

classified into Tacit and Explicit Knowledge. Mainly Explicit 

knowledge deals with objective and technical knowledge, 

whereas tacit knowledge deals with the domain of the 

subjective and experimental learning. Knowledge 

management is a managerial activity which develops transfers, 

transmits stores and applies knowledge, as well as providing 

the members of the organization with real information to react 

and make the right decisions, in order to attain the 

organizational goals. 

II. DEFINITIONS 

A. Table 1: Definitions of Knowledge Management by 

different authors. 

Author 

Ouintas and Klobas 

( 1997 ) 

Davenport and 

Prusak ( 1998 ) 

Gupta ( 2000 ) 

Bhatt ( 2001 ) 

Holm (2001 ) 

Horwitch and 

Armacost ( 2002 ) 

Definition of Knowledge Management 

KM is to discover, develop, utilize, 

deliver and absorb knowledge inside 

and outside the organization through an 

appropriate management process to 

meet current and future needs. 

KM is managing the corporation’s 

knowledge through a systematically and 

organizationally specified process for 

acquiring, organizing, sustaining, 

applying, sharing and renewing both the 

tacit and explicit knowledge of 

employees to enhance organizational 

performance and create value. 

KM is a process that helps 

organizations find, select, organize, 

disseminate and transfer important 

information and expertise necessary for 

activities. 

KM is a process of knowledge creation, 

validation, presentation, distribution 

and application. 

KM is getting the right information to 

the right people at the right time, 

helping people create knowledge and 

sharing and acting on information. 

KM is the creation, extraction, 

transformation and storage of the 

correct knowledge and information in 

order to design better policy, modify 

action and deliver results. 

Knowledge management is a process that helps organization 

to identify, select, organize, disseminate and transfer 

important and expertise that are part of the organization’s 

memory and that typically reside within the organization in an 

unstructured manner. This structuring of knowledge enables 

effective and efficient problem solving, dynamic learning, 

strategic planning and decision making. Knowledge 

management initiatives focus on identifying knowledge, make 

clear it in such a way that it can be shared in a formal manner 

and leveraging its value through reuse. 

Through a supportive organizational climate and 

modern information technology, an organization can bring its 

entire memory and knowledge to bear upon any problem 

anywhere at any point of time. For organizational success, 

Knowledge is as a form of capital and must be exchangeable 

within in employees. 

In the informative technology context, Knowledge is 

very distinct from data and information. Whereas data are a 

collection of facts, measurement and statistics, information is 

organized or processed data that are timely and accurate. 

Knowledge is information that is contextual, relevant and 

actionable. 

B. Figure 1: Process of Data to Knowledge Final Stage 

Knowledge Management in modern practice 

emphasizes the creation of new knowledge and the timely 

application of organizational to maintain strategic advantage. 

It assumes that the existing system within the organization is 

to support for knowledge creation and the relevant knowledge 

is to be sourced internally and externally. The sourced 

knowledge has to be recorded or indexed in such a way that it 

can be retrieved at any point of time by any person in the 

organization to update or to solve any problem that helps to 

reach organizational goal. 

C. Figure 2: Process of Knowledge Management 

Knowledge management is the practice of 

discovering innovations for a community by studying its 

people, processes and tools. A newly, emerging organization 

dealing with all aspects of knowledge required at all verticals 

of business involves with: ―Knowledge creation – 

documentation (archive) – Sharing (dissemination)‖ and how 

these activities promote learning, effectiveness, innovation 

and profitability. In practice, Knowledge management 


encompasses technological tools and organizational routines 

in overlapping parts. Knowledge is nothing but information in 

action. It is broadly classified into Tacit and Explicit 

Knowledge. Mainly Explicit knowledge deals with objective 

and technical knowledge, whereas tacit knowledge deals with 

the domain of the subjective and experimental learning. 

A. Figure 3: Explicit Vs Tacit Knowledge 

III. EXPLICIT KNOWLEDGE 

Explicit knowledge deals with more objectives, rational and 

technical knowledge. It is nothing but the Policies, Standard 

Operating Procedures, White Papers, Reports, Designs, 

Products, Strategies, Goals, Mission and Core Competencies 

of the organization. It is the knowledge that has been codified 

in a form that can be distributed to others or transformed into a 

process or strategy without requiring any interaction. This 

explicit knowledge is also known as ―leaky knowledge‖, 

because it can leave an individual, document or any 

organization. Later this can be added after the documentation 

process. 

IV. TACIT KNOWLEDGE: 

Tacit knowledge is the cumulative store of the experiences, 

mental maps, insights, acumen, expertise, know-how, trade 

secrets, skill sets, understandings and learning that an 

organization already have. This tacit knowledge is also known 

as ―embedded knowledge‖ is usually either localized within 

the brain of an individual or embedded in the group 

interactions within the department or in a unit. Tacit 

knowledge typically involves expertise or high skill levels. It 

is generally slow and costly to transfer and can be weighed 

down by uncertainty. This type of knowledge is also known as 

―sticky knowledge‖, because it may be relatively difficult to 

pull it away from its source. 

Successful transfer or sharing of tacit knowledge usually 

takes place through associations, internship, apprenticeship, 

conversations and other means of social and interpersonal 

interactions or even through simulations. 

V. THE NEED FOR KNOWLEDGE MANAGEMENT SYSTEM: 

The goal of Knowledge Management for an organization 

is to be aware of individual and collective knowledge, so that 

it may be most effective use of the knowledge it has. Mainly 

Management Information System (MIS) is focused on 

capturing, storing, managing and reporting explicit 

Knowledge. Now in many Organization they realize that both 

the Explicit & Tacit knowledge what they have is to be in 

formal information system. This system is called as 

Knowledge Management System (KMS). This refers to the 

use of modern information technologies (eg., Internet, 

Intranet, Extra nets, Lotus Notes, Software filters, Agents, 

Data warehouses) to systematize, enhance and expedite intra 

and inter firm knowledge management. They are being built in 

part from increased pressure to maintain a well informed, 

productive work force. 

A functioning knowledge management system follows six 

steps in cycle. The reason, the system is cyclic is that the 

Knowledge is dynamically refined over time, the 

environment changes and the knowledge must be updated to 

reflect the changes. Mainly the six steps are 

Create Knowledge 

Capture Knowledge 

Refine Knowledge 

Store Knowledge 

Manage Knowledge 

Share Knowledge. 


The cycle works as follows: 

A. Figure 4: Knowledge Management Cycle 

This work is dedicated to my lovable Parents, In-Laws, 

Wife and Son. Through their guidance, emotional support, I 

have been able to truly appreciate the value of education. The 

achievement of a doctorial degree is one that can only be 

obtained with the strong faith, dedication and direction that 

comes from a loving and caring family. 

VI. CONCLUSION: 

The Organizational Knowledge Management System is 

very much essential in this changing environment. Due to 

globalization talent retention is highly difficult. In order to 

compete with the competitors Knowledge-base is very much 

required in each and every organization. Knowledge 

management programs can result with high benefits for both 

individual and also for organizations, if they are purposeful, 

concrete and action oriented. The critical issue in 

implementing this knowledge management initiative in an 

organization is that to clear the mindset of the employees. 

Initially everyone in the organization has to accept, then adapt 

to it and then they have to utilize it properly. Preparing an 

organization to get accept for knowledge management 

initiative is nothing but they have to adapt for a change. 

―Change Management‖ is the need of the hour. This helps to 

improve the working culture of the employees in any 

organization. 

VIII. REFERENCES 

[1] Abell, A. and oxbrow,n. – Knowledge Management Hand book 

[2] Allee,V. – ―Twelve Principles of Knowledge Management‖ 

[3] Bhatt,G. ― Knowledge management in organizations; examining the 

interation between technology, techniques and people. – Journal of 

Knowledge Management. 

[4] Davenport,T. – ― Managing customer support knowledge‖ 

[5] Gupta,B – ―Knowledge management Practices and Challenges‖ 

[6] Pearson,T. – ―Measurement and Knowledge revolution‖. 

Wilson.L. ― Putting Quality in Knowledge Management. 

[7] www.b2binternational.com` 

[8] www.citseerx.ixt.psu.edu. 

[9] www.ezinearticles.com 

[10] www.hubpages.com 

[11] www.managementstudyguide.com 

[12] www.wikipedia.com 

VII. ACKNOWLEDGMENT 

I am very much obliged to the Management of Textile 

Machinery Manufacturing division, for giving me an 

opportunity to undergo this Doctorial degree in Management, 

as a part time course at Karpagam University – Coimbatore. 

I sincerely thank the Management and staff of Textile 

Machinery Manufaturing division for providing excellent 

support in collecting data and a congenial atmosphere for 

undergoing the course. 

I sincerely thank to my guide Dr.G.Ravindran – Assistant 

Professor in T.K. Government College of Arts and Science, 

Viruddhachalam, Cadallore, for his valued direction and 

continuous supervision at each and every stage in bringing out 

this project. I also thank to for his excellent faculty support 

and overall guidance about this project. 


Relevance of Financial Information on Abnormal 

Return on Day of official Announcement 

of Acquiring Banks 

S. Venkatesan, Asst. Professor, Department of Commerce, 

Hindustan College of Arts & Science, Chennai, India. 

Dr. K. Govindarajan, Professor, Department of Commerce, Annamalai University, India 

Abstract 

The objective of this paper is to examine the relevance of 

accounting information in explaining the abnormal return 

relative to public and private sector banks‟ deals acquiring 

other financial institutions. For this purpose, the acquisition 

deals of public and private sector banks in India between 

1995 and 2006 are considered for the study. The study uses 

financial ratios relating to liquidity, activity and profitability 

as proxies of accounting information. The factor analysis is 

used to group the related ratios into a common factor. The 

multiple regression technique is adopted to find out the 

relevance of accounting information in explaining the 

abnormal return. The financial factors obtained from factor 

analysis are used as independent variables in the regression 

analysis. The Cumulative abnormal return relative to BSE 

100 for different event windows from event day to 41-day 

(20 days before and 20 days after the official announcement 

of the deals) used as dependent variable. From the 

inferences of the results, it is found that accounting factors 

pertaining to profitability and activity of acquiring banks are 

the significant factors in determining abnormal returns. 

Key words: Abnormal Returns, Cumulative Abnormal 

Returns, Factor analysis, Multiple regression analysis 

Introduction 

Financial statements serve as the primary financial reporting 

mechanism of a firm, both internally and externally. That is, 

accounting information from financial reports can describe a 

firm‟s condition. The management of a firm uses the 

financial statements as a method to communicate the 

financial information to decision makers, such as investors, 

lenders, researchers and other interested parties. The 

financial information is much importance for shareholders 

of a firm in particular. Hence, this paper is undertaken to 

focus on acquiring banks‟ financial factors affecting the 

market reaction to their acquisition announcements. 

Review of Literature 

Many researchers have argued in favour of fundamental 

analysis suggesting that it is possible to make informed 

financial projections using financial statement information 

and to earn consistent excess returns (Abarbanell and 

Bushee [1], Fama and French [2], Lewellen [3]). 

Ball and Brown [4] found that accounting earnings are 

valued positively by investors. Bernard and Thomas [5] 

found evidence to support the argument that both past and 

present earnings can be used to predict future earnings 

changes; however, the current share prices generally do not 

reflect this information. Therefore, investors could use both 

current and historical earnings data to predict the share price 

response to future earnings announcements. 

According to Ohlson [6], financial ratio analysis can help 

investors in making investment decision and predicting 

firm‟s future performance. It can also give early warning 

about the slowdown of firm‟s financial condition. Research 

about accounting information for predicting return on shares 

is also conducted in Indonesia. Daniati and Suhairi [7] 

showed that cash flow from investing activities, gross profit, 

and company size significantly affect expected return on 

shares. 

Lev and Thiagarajan [8] performed a research on correlation 

between 12 fundamental variables and firm‟s abnormal 

return for period 1974-1988, The result showed that changes 

in inventory, receivable, capital expenditure, gross margin, 

sales and administrative expense, and order backlog 

significantly affect return. 

Manao and Nur [9] observed the relation between financial 

ratio and stock returns during economic crisis in Indonesia 

by adding firm size as variable. This study used eight 

financial ratios (QR, TATO, CLTA, LDTA, GPM, ROE, 

PBV, and EPS). Those companies were divided into three 

size categories (small, medium and big) based on total assets. 

The result shows that PBV and EPS have significant 

influence on all models. 

Sparta and Februwaty [10] studied the affect of ROE, EPS, 

and CFO on stock return of manufacturing industry using 

data of 32 manufacturing companies during 1999-2002. The 

result shows that only ROE that significantly influences 

stock return while EPS and CFO have insignificant negative 

effect on stock return. 

Mais [11] performed research on effect of financial ratios, 

including NPM, ROA, ROE, DER, and EPS, on stock price 


of companies listed on Jakarta Islamic Index in 2004. The 

outcome of this research explains that statistically all 

variables except DER are significant and have positive 

impact on stock price. 

Statement of the Problem 

The financial statements are a structured financial 

representations of the financial position of and the 

transaction undertaken by an enterprise. The objective of 

general purpose financial statements is to provide 

information about the financial position and performance of 

an enterprise that is useful to a wide range of users in 

making economic decisions. Thus the accounting 

information from financial statements (reports) is the most 

useful and important to all users especially for the 

shareholders or investors in decision making process. 

Therefore, this study intends to examine the relationship 

between accounting information and shareholders wealth of 

the banks involved in the acquisition activities. 

Objectives of the Study 

The major objective of this research is to find out the 

financial factors that could determine the abnormal return 

for shareholders‟ of banks in response to their acquisition 

deals. 

Hypothesis 

The following null hypotheses are framed for the present 

study: 

(a) There is no significant relationship between 

liquidity position and abnormal return. 

(b) There is no significant relationship between 

activity ratio and abnormal return. 

(c) There is no significant relationship between 

profitability and abnormal return. 

(d) There is no significant relationship between interest 

income and abnormal return. 

Methodology 

Sample 

A sample of public and private sector banks involved in 

acquisition activities during the years between 1996 and 

2006 are considered for the study (See Table) Annexure 1. 

Period of the Study 

The acquisition activities of banks under public and private 

sectors during the period from 1999 to 2004 are undertaken. 

Data 

The present study is relied on secondary data, which are 

interim financial reports for three quarters, one event quarter 

(quarter accompanying event month) and two quarters 

before the event quarter. The daily close share prices of the 

acquiring banks as well as BSE 100 index (used as 

benchmark) for one year before and one year after the year 

of official announcement of the acquisition deal also 

collected for the study to calculate abnormal return. The 

required data were gathered from PROWESS data base. 

Three primary categories of commonly used financial ratios 

relating to liquidity, activity and profitability have been used 

in the present research. Under these three primary 

categories, eleven financial ratios, namely Current ratio 

(CR), Quick ratio (QR), Cash ratio (CSHRAT), Working 

capital turnover ratio (WCTO), Asset turnover ratio 

(ASTTO), Fixed asset turnover ratio (FATO), Net Interest 

Income (NIMRGN), Net profit after tax (NPAT), Return on 

net worth (RONW) and Return on capital employed 

(ROCE) are considered. As there is correlation among 

selected ratios under each category as well as high 

correlation among the ratios across categories is likely, 

using these ratios would lead to multi-collinearity problem 

in the regression analysis. In order to avoid these problems, 

principal method of factor analysis with varimax rotation is 

used to group the correlated ratios into a common factor. 

The newly extracted financial factors are then used as the 

independent variables in the regression analysis. 

Design 

The abnormal return on the day of official announcement of 

acquisition deals of the public and private banks is 

calculated using event study approach. The event study 

approach is adopted to eliminate the market influence from 

the rate of return on a security during the event time period. 

The abnormal returns for each public and private sector 

banks are first calculated using market model. For 

calculating estimated return, the market model is used 

because it is widely used standard method for studies of this 

type. This model uses the following formula to compute 

the abnormal returns: 

ARjt = Rjt – (a + bjRmt) 

where Rmt is the value-weighted return on the market on 

day t. 

After first finding the estimates of the parameters (a, b) for 

each bank (j) during a control period (estimation period) 

comprised of non-event day of -120 through +60 excluding 

20 days before and after the official release of acquisition 

deal, the market model was used to calculated the expected 

return. The abnormal returns on stock j on day t, ARjt, (here 

on event day) could then be found as the difference between 

the actual daily return (Rjt) and the expected (estimated) 

daily return (a + bRmt). 

Statistical Tool 

To find out the relationship of liquidity, activity and 

profitability of the acquiring banks on abnormal return to 

shareholders in response to their acquisition deals, multiple 

regression model is used. The specification of the 

regression model is: 

Where, 

is the Abnormal return on the event day considered as 

dependent variable in the regression model. 

… are the explanatory variables (here financial factors) 

…. are the estimated coefficients 

„e‟ is the error term 


Results and Discussion 

Table II provides the eigenvalue of the factors (the number 

of possible factors underlying the data is equal to the 

number of items in the analysis) produced by the factor 

analysis. From the table, it can be observed that there are 

four factors with eigenvalue above one and all these four 

factors together could explain 88.57 per cent of the variation 

in the original data (actual financial variables). Individually, 

the explained variance in the actual data by first, second, 

third and fourth factor is 39.07 per cent, 23.41 per cent, 

15.04 per cent and 11.05 per cent before varimax rotation 

whereas it is 36.22 per cent, 23.61 per cent, 13.39 per cent 

and 15.34 per cent after varimax rotation (Table III) 

respectively. As eigenvalue of the first four factors are 

above one and they together could explain maximum 

variance in the actual data, these factors are considered as 

valid factors and extracted for using in the regression 

analysis as independent variables. 

The nature of extracted factors, that is, which factor posses 

the characteristics of which of the financial ratios is 

ascertained from factor loadings of items with extracted 

factors obtained factor analysis. From factor loadings 

provided in the Table III, it is apparent that the first factor is 

highly loaded with CR, QR, CSHRAT and WCTO, in turn 

indicating that the first factor tends to explain the liquidity 

and cash position of the selected banks. The second factor, 

which is highly loaded with RONW and ROCE followed by 

NPMRGN, is found to be representing profitability of the 

banks. While FATO have high loadings with third factor, 

revealing that this could explain the activities of the banks, 

the fourth factor is highly loaded with ASTO and NIMRGN 

indicating the interest earning capacity of the banks. 

Table IV shows regression results for event day Abnormal 

Return (AR) after adjusting for risk associated with stocks 

listed under BSE 100. As per the table, the first regression 

model (Model 1) for event data CAR relative to BSE 100 

with all independent variables, viz., liquidity / cash ratio, 

operating profit, activity ratio and net profit after tax is fitted 

significantly with 50.38 per cent and 41.36 per cent of 

explained variation in the dependent before and after 

adjusting for degrees of freedom. But the estimated 

coefficient of profitability is insignificant. So, the stepwise 

process is adopted to get the model of best fit after dropping 

insignificant variables, profitability. The second model 

(model 2) in the absence of profitability is fitted 

significantly with 47.38 per cent and 40.52 of the variation 

before and after adjusting for degrees of freedom. This 

reveal a trivial amount of decline in the explanatory power 

of the model without profitability. Again, the third model is 

also run after removing „interest income‟, which becomes 

insignificant in second model, to find out whether there has 

been any further improvement in the explanatory power. 

But the explanatory power of the third model without net 

interest income has come down heavily to 36.88 per cent 

(Adjusted R2= 0.3688) after adjusting for degrees of 

freedom. However, from the comparison of the adjusted R2 

values, it becomes apparent that the first model with high 

value is the model of best fit for making final inference. 

Therefore, the second model with 48.12 per cent of the 

explained variance after adjusting for degrees of freedom is 

considered as the best fitted model for further inference. 

In the selected first model, the coefficient of interest income, 

( = 0.0149, t = 1.81, p < 0.10), liquidity / cash position ( = - 

0.0141, t = -2.24, p < 0.05) and activity ( = 0.0144, t = 2.72, 

p < 0.01) is significant at 10 per cent, 5 per cent and 1 per 

cent levels respectively. But the sign of the coefficient is 

positive for activity and interest income whereas it is 

negative for liquidity / cash position. This exposes the fact 

that AR tend to increase significantly with increase in 

activity and interest income notwithstanding notable decline 

in liquidity and cash position of public and private second 

banks under study. So, the hypothesis, “there is no 

significant relationship between profitability and abnormal 

return” is accepted while other three hypothesis, which 

states that “there is no significant relationship between 

liquidity / cash position and abnormal return”, “there is no 

significant relationship between activity ratio and abnormal 

return” and “there is no significant relationship between 

interest income and abnormal return” are rejected. 

Conclusion 

This article was focused to examine effect of financial 

factors (financial information) on abnormal return from 

shares of public and private sector banks on the day of 

official announcement of deals acquiring other financial 

institutions. The event study methodology was adopted to 

calculate the abnormal return with BSE 100 as benchmark. 

Eleven financial ratios under three accounting categories 

namely liquidity, activity and profitability were initially 

selected and later on they are reduced to four major financial 

factor using principal component method of factor analysis 

with varimax rotation. Multiple regression analysis was 

used to examine effect of financial factors on event day 

abnormal return. In the regression analysis AR was the 

independent and four financial factors were the independent. 

From the inferences of the regression results, it is concluded 

there is a significant unique relationship between activity 

and AR as well as between profitability and AR whereas 

liquidity and AR was found to be unrelated. That is, the 

activity and profitability of the acquiring banks play vital 

role in determining the event day abnormal return revealing 

that accounting information were relevant (significant) in 

determining abnormal return of acquiring banks on the day 

of official announcement of their acquisition deals. 

References 

[1] J.S. Abarbanell, J. S., and B.J. Bushee, B. J. 

"Fundamental Analysis, Future Earnings, and Stock Prices", 

Journal of Accounting Research, Vol. 35, No.1, pp.1-24, 

1997. 

[2] E.F. Fama and K.R. French. "The Cross-Section of 

Expected Stock Returns", Journal of Finance, Vol.47, No.2, 

pp.427-465, 1992. 

[3] J. Lewellen. "Predicting returns with financial 

ratios", Journal of Financial Economics, Vol.74, pp.209-235, 

2004. 


[4] R. Ball and P. Brown. "An empirical evaluation of 

accounting income numbers", Journal of Accounting 

Research, Vol.6, No.2, pp.159-178, 1968. 

[5] V.L. Bernard and J. Thomas. "Evidence that stock 

prices do not fully reflect the implications of current 

earnings for future earnings", Journal of Accounting and 

Economics, Vol.13, No.4, pp. 305-340, 1990. 

[6] J.A. Ohlson. Financial ratios and the probabilistic 

prediction of bankruptcy. Journal of Accounting Research, 

Vol.18, No.1, pp.109-131, Spring-1980. 

[8] B. Lev and R.Thigarajan. Fundamental information 

analysis. Journal of Accounting Research, Vol.31, No.2, 

pp.190-215, Autumn 1993. 

[9] H. Manao and D. Nur. Asosiasi rasio keuangan 

dengan return saham: pertimbangan ukuran perusahaan serta 

pengaruh krisis ekonomi di indonesia. Simposium Nasional 

Akuntansi, No.4, 2001. 

[10] S.Sparta and F. Februwaty. Pengaruh ROE, EPS, 

OCF terhadap harga saham industri manufacturing di bursa 

efek jakarta. Jurnal Akuntansi, Vol.9, No.1, January 2005. 

[7] N. Daniati and D.Suhairi. Pengaruh kandungan 

informasi komponen laporan arus kas, laba kotor, dan size 

perusahaan terhadap expected return saham (survey pada 

industri textile dan automotive yang terdaftar di BEJ). 

Padang: Simposium Nasional Akuntansi, No.9, pp.23-25, 

2006. 

[11] R.G. Mais. Pengaruh rasio-rasio keuangan utama 

perusahaan terhadap harga saham perusahaan yang terdaftar 

di jakarta islamic index tahun 2004. Jurnal Ekonomi STEI, 

Vol.14, No.3, p.30, July-September, 2005. 

Annexure 

Table I 

Particulars of Bank Mergers Between 1996 and 2006 

Acquiring Banks Target Banks Event Date 

PUBLIC SECTOR BANKS 

Bank of Baroda Barelly Corporation Banks Ltd 03.06.1999 

Bank Of Baroda Banaras State Bank Ltd 20.07.2002 

Bank Of Baroda South Gujarat Local Area Bank Ltd 25.06.2004 

Oriental Bank Of Commerce 

Punjab Co.op Bank and 

Bari Doab Bank Ltd 

08.04.1997 

Oriental Bank Of Commerce Global Trust Bank Ltd 14.08.2004 

Punjab National Bank Nedungadi Bank Ltd 01.02.2003 

State Bank Of India Kashinath Seth Bank 01.01.1996 

PRIVATE SECTOR BANKS 

H D F C Bank Ltd. Times Bank Ltd 26.02.2000 

I C I C I Bank Ltd. Bank of Madura 10.03.2001 

Table II 

Eigenvalue of the Factors 

Factor Eigenvalue % Total Variance 

Cumulative % of Total 

Variance 

1 3.91 39.07 39.07 

2 2.34 23.41 62.47 

3 1.50 15.04 77.51 

4 1.11 11.05 88.57 

5 0.41 4.08 92.65 

6 0.33 3.27 95.92 

7 0.27 2.67 98.59 

8 0.10 1.03 99.62 

9 0.04 0.37 99.99 

10 0.00 0.01 100.00 


Liquidity / 

Cash 

Position 

Profitabili 

ty 

Activity 

Interest 

Income 

Independent Variables 

Table III 

Loadings of Variables with Extracted Factors 

Valid Factors 

First Second Third Fifth 

CR 0.97 0.09 0.12 0.11 

QR 0.97 0.09 0.11 0.11 

CSHRAT 0.97 0.11 0.09 0.07 

WCTO 0.73 -0.33 -0.35 0.13 

NPMRGN -0.02 0.77 -0.38 -0.16 

RONW -0.04 0.91 0.10 0.06 

ROCE 0.28 0.88 0.07 0.11 

FATO 0.17 -0.02 0.94 0.10 

ASTTO -0.01 0.12 0.25 0.89 

NIMRGN 0.41 -0.08 -0.14 0.80 

Explained Variance 3.62 2.36 1.34 1.53 

Percentage of Total Variance Explained 36.22 23.61 13.39 15.34 

Cumulative Percentage of Total 

Variance Explained 

36.22 59.83 73.23 88.57 

Factor Label 

Table IV 

Regression Results for Event Day Abnormal Return Relative to BSE 100 with Major Financial Characteristics 

of Acquiring Banks 

Independent Variables Model 1 Model 2 Model 3 

Intercept 

-0.0138** -0.0115** -0.0089 

-(2.33) -(2.04) -(1.61) 

Liquidity / Cash Position 

-0.0141** -0.0134** -0.0116* 

-(2.24) -(2.13) -(1.81) 

Profitability 

0.0066 

(1.15) 

Activity 

0.0144*** 0.0157*** 0.0157*** 

(2.72) (3.00) (2.91) 

Interest Income 

0.0149* 0.0126 

(1.81) (1.57) 

R Square 0.5038 0.4738 0.4173 

Adjusted R Square 0.4136 0.4052 0.3688 

F Value 5.58*** 6.90*** 8.60*** 

(Degrees of Freedom) 4..22 3..23 2..24 

Figures in brackets are standard deviation. 

*Significant at 10% level; **Significant at 5% level; ***Significant at 1% level 


CKK‟s Advertisement Intervention Model 

[A Conceptual Model] 

Dr. C.K. Kotravel Bharathi, Principal, Sri Kandhan College of Arts and Science, 

Erode-Salem Highway, ERODE 

Today, the term „advertisement‟ is very popular 

and well known to every one of us. It intervenes in each of 

our lives every day. We see the advertisements on the 

television, in the newspapers, on the trash containers, in the 

magazines, on our mail, on the vehicles, on the bill-boards, 

etc. Advertisements on the FM radio channels are also very 

popular today. It is a part of our daily life and we are 

conscious of it. 

The television commercials have set a complete 

transformation in all aspects in the new millennium. Use of 

technology, animation, lateral thinking in presentation and 

like this, lots of changes have taken place in the television 

advertisements. But to what extent these effects have 

reached the viewers? How do the viewers/consumers 

perceive about the various aspects of these advertisements? 

Whether these advertisements have made a positive impact 

in the viewers in the past 10 years? These are the questions 

that arise in our minds immediately, when we discuss about 

the advertisements of today. The collection of these 

questions has been taken as the problem for the purpose of 

this study. 

Objectives of the Study 

1. To analyze the relation (if any) between 

demographic characteristics of the consumers and 

their TV watching-customary. 

2. To analyze the influence of various television 

channels and the programmes on the consumers. 

3. To identify the positive and negative aspects of the 

television advertisements in the perception of the 

consumers. 

4. To analyze the perception of the consumers 

towards various features of television 

advertisements. 

5. To analyze the impact of the television 

advertisements on the buying behaviour of the 

consumers. 

Scope of the Study 

The present study deals with analyzing the 

perception of the consumers regarding various TV 

commercials. The study has taken into consideration the 

demographic background of the viewers and analyses the 

relation between the demographic characters and the TV 

watching habitual. It also analyses what are the various 

televisions channels and the programmes that influence the 

viewers. It analyses the leading channels and the leading 

programmes in the perception of the viewers. It 

significantly deals with the analysis of the positive and 

negative attitudes of the viewers, towards the television 

commercials. 

It further analyses the perception of the 

viewers/consumers regarding various aspects and 

components of the television commercials. Very 

importantly it deals with the analysis of the impact of 

television advertisements on the buying behaviour of the 

viewers/consumers. It has come out with lot of findings. 

Sample Design 

A sample design is a definite plan for obtaining a 

sample from a given population. It refers to the technique or 

the procedure the researcher would adopt in selecting items 

for the sample. Sample design may as well lay down the 

number of items to be included in the sample, i.e., the size 

of the sample. Sample design is determined before data are 

collected. There are many sample designs from which a 

researcher can choose. Some designs are more precise and 

easier to apply than others. Researcher must select/prepare 

a sample design which should be reliable and appropriate 

for his research study. 

The Universe for this Study 

The universe for this study is constituted by the 

television-watching population of Tamilnadu. The general 

population of Tamilnadu may be definite for the purpose of 

any study when we confine to the population available on a 

particular day on the reliable records. But the televisionwatching 

population taken up for this study is exactly not 

available on any of the available sources. So, the universe 

for this study is infinite. 

The Sampling Technique 

As the population or universe taken up for this 

study is not finite, the researcher could not go for exact 

randomization of sample. But, still for the purpose of the 

ensuring accuracy of the results, the researcher wanted to 

establish a sampling plan which is a combination of two or 

three sampling techniques. Thus the sampling plan for the 

purpose of this study is consisting of the following 

techniques. 

1. Purposive sampling 

2. Quota sampling 

The researcher wanted to select four districts out of 

32 districts in Tamilnadu. For this purpose, the area 

sampling technique was adopted as follows. 

S. No. Region District Selected 

1 North Chennai 

2 Central Coimbatore, Erode 

4 South Madurai 

Quota Sampling 

Quota sampling is one of the non-probability 

sampling techniques. Under Quota-sampling, the 

interviewers are simply given quotas to be filled from the 


different strata, with some restriction on how they are to be 

filled in. In other words, the actual selection of the items for 

the sample is left to the interviewer‟s discretion. This type 

of sampling is very convenient and relatively less expensive. 

Different Strata 

As the researcher decided to go for the „Quota 

Sampling‟ method, it was decided to make some strata 

which would be appropriate for the purpose of the study. 

According to the decision, the following strata were 

constituted. Totally 800 respondents were selected as per 

S. No. Name of the Stratum Number of 

Respondents 

drawn 

1. Government employees 150 

2. Employees in the private sector 150 

3. The Youth (Confined to college 150 

students) 

4. House-wives 150 

5. Business people and 

100 

Professionals 

6. Senior Citizens 100 

Total 800 

the plan evolved. 

Details of Variables 

Each category shown in the above diagram is 

consisting of a group of variables. Totally one hundred and 

one such items have been identified and the data have been 

collected on those items through the standardized tool. The 

following table shows the details of that group of variables. 

The Dependent and Independent variables 

If one variable depends upon or is the consequence 

of the other variable, it is termed as a dependent variable. 

The variable that is antecedent to the dependent variable is 

termed as an independent variable. 

In this study, Viewers‟ Demography, Channels and 

Programmes, Television customary, Attributes of the Ads 

and Components of the Ads have been taken as the 

independent variables. Perception of Ads, Attitude towards 

the Ads and - most importantly - the Impact on buying 

behaviour have been taken as the dependent variables. 

The Extraneous variable* 

Independent variables that are not related to the 

purpose of the study, but may affect the dependent variable 

are termed as extraneous variables. In this study, the 

researcher has analyzed how the viewers/consumers 

perceive various aspects, attributes and components of the 

advertisements and what attitude has been formed towards 

the advertisements. The researcher has not taken into 

consideration the intellect, insight and exposure of the 

respondents and to what extent these factors influence the 

perception and adjudging of the effectiveness of the 

advertisements. Though the educational qualification has 

been taken into consideration, that attribute alone cannot 

bring the intellect, insight and the exposure in all the 

viewers, to a greater extent. So, the collection of these 

attributes (intellect, insight and exposure) is considered to 

be an extraneous variable here, by the researcher. 

CKK’s Advertisement Intervention Model 

The researcher has developed a model, based on 

the variables that he has taken up for this study. This model 

has been named after the researcher C.K. Kotravel Bharathi 

as CKK‟s Advertisement Intervention Model. 

The study has mainly focused on how the 

viewers/consumers perceive the television commercials 

(advertisements) and what is the impact of those 

advertisements on the buying behaviour of the 

viewers/consumers. The researcher attempts to explain how 

the TV commercials intervene in the formation of 

viewers/consumers‟ attitude towards the products and how 

they intervene in the buying behaviour of the 

viewers/consumers. 

But interestingly this model would explain the 

influence of lot of variables. The model shows five stages. 

They are: Reception, Intervention, Perception, Impact and 

Promotion/Contagion. As the action of process is 

intervened or influenced by some of the variables at every 

stage, this model is meaningfully called as Intervention 

Model. 

Reception 

This stage indicates the caption of advertisements by the 

viewers/consumers, while watching. Reception does not 

happen evenly and consistently with all the viewers at all the 

times. It is intervened by the following variables. 

Time & Frequency of watching 

Channel & Programme selection 

Watching Customary 

Intervention 

Between the „Reception‟ and „Perception‟, an 

important stage takes place. It is called intervention. It 

means after having received the commercials and the 

impression made by them, the viewers are influenced by 

some variables which help them to perceive the 

advertisements. There are a lot of such variables. 

Significantly the following variables can be mentioned. 

1. Information content 

TABLE-1 

Ads provide useful information 

Valid Strongly 

Disagree 

Frequency Percent 

Valid 

Percent 

Cumulative 

Percent 

26 3.2 3.2 3.2 

Disagree 90 11.2 11.2 14.5 

Agree 426 53.2 53.2 67.8 

Strongly 

Agree 

258 32.2 32.2 100.0 

Total 800 100.0 100.0 

[Source: Primary Data] 


Another significant feature of the advertisements is 

to provide useful information about the products and 

services. Interestingly 85.4% of the respondents have 

agreed that the ads provide such information to the 

consumers. 

2. Celebrities’ appeal 

TABLE-2 

Celebrities' appeal have high impact on viewers 


Disagree 


Valid 

Percent 

Cumulative 

Percent 

21 2.6 2.6 2.6 

Disagree 155 19.4 19.4 22.0 

Agree 386 48.2 48.2 70.2 

Strongly 

Agree 

238 29.8 29.8 100.0 

Total 800 100.0 100.0 


Liking the advertisements where the celebrities 

appear in, is different; whether such advertisements make 

any impact on the viewers is totally different. It is again 

interesting here to note that, according to 78 % of the 

respondents, Celebrities' appeal have high impact on 

viewers. 

3. Creativity 

TABLE-3 

There is wide scope for creativity in TV ads 


Disagree 


Valid 

Percent 

Cumulative 

Percent 

18 2.2 2.2 2.2 

Disagree 49 6.2 6.2 8.4 

Agree 359 44.8 44.8 53.2 

Strongly 

Agree 

374 46.8 46.8 100.0 

Total 800 100.0 100.0 


It is remarkable to note that 91.6% of the 

respondents have endorsed the view that there is a wide 

scope for creativity in the TV commercials today. Only 

8.4% of the respondents have denied this perspective. 

4. Music 

TABLE-4 

Music attracts than any other aspect of ads 


Disagree 


Valid 

Percent 

Cumulative 

Percent 

13 1.6 1.6 1.6 

Disagree 112 14.0 14.0 15.6 

Agree 344 43.0 43.0 58.6 

Strongly 

Agree 

331 41.4 41.4 100.0 

Total 800 100.0 100.0 


In support to the previous table, the above table 

also shows that 84.4% of the respondents say that music 

attracts them than any other aspect of advertisements. 

5. Lyric 

TABLE-5 

Tunes and Lyrics get instilled in mind - we recall and 

hum 


Disagree 


Valid 

Percent 

Cumulative 

Percent 

40 5.0 5.0 5.0 

Disagree 131 16.4 16.4 21.4 

Agree 273 34.1 34.1 55.5 

Strongly 

Agree 

356 44.5 44.5 100.0 

Total 800 100.0 100.0 


When we listen to some film-songs - whether it is 

classical, melodious, folk or rock-beat – if we like them, 

they get instilled in our minds and we use to hum it. 

Whether it happens in case of lyrics and tunes of 

advertisement songs also? 78.6% of the respondents say 

“yes”. 

6. Punch-line 

TABLE-6 

Taglines and slogans make the ads familiar 


Disagree 


Valid 

Percent 

Cumulative 

Percent 

42 5.2 5.2 5.2 

Disagree 124 15.5 15.5 20.8 

Agree 299 37.4 37.4 58.1 

Strongly 

Agree 

335 41.9 41.9 100.0 

Total 800 100.0 100.0 



Another familiar aspect of the ads is the taglines 

and slogans. There are lots of punch-lines in the ads like 

“Appadiye sappiduven” (Tamil) of Horlicks, “Ithu namma 

ooru vandi” (Tamil) of TVS, “Neenga Ujaalaavukku 

maareetteengalaa?” (Tamil) of Jyothi Laboratories, 

“Palichunnu oru maatram” (Tamil) of Vivel soap, etc. 

Here, 73.3% of the respondents agree that the taglines and 

slogans make the ads familiar. 

7. Logic 


Disagree 

TABLE-7 

Ads have Logic 


Valid 

Percent 

Cumulative 

Percent 

15 1.9 1.9 1.9 

Disagree 60 7.5 7.5 9.4 

Agree 324 40.5 40.5 49.9 

Strongly 

Agree 

401 50.1 50.1 100.0 

Total 800 100.0 100.0 


Any communication without logic is non-sense. 

Logic adds meaning and a sense of completeness to the 

advertisements. Here, interestingly 90.6% of the 

respondents agree that the advertisements of today have 

enough logic. 

Perception 

During this stage, the viewers perceive the 

advertisements in a certain way. The above mentioned 

variables intervene the perception. The viewer is impressed 

or irritated by one or more variables. Based on this, the 

viewers starts to like or dislike the advertisement. 

Impact 

Based on how the viewer perceives the 

advertisement, he forms an attitude in his mind about the 

advertisement, the product, the brand or a combination of 

these. The attitude may be positive or negative. The degree 

of the positivity or negativity would also matter a lot. This 

attitude reflects on the buying behaviour of that 

viewer/consumer. If the viewer or consumer is impressed 

by the advertisement of a product or brand may be 

motivated to purchase and consume that product. If the 

viewer does not like the advertisement or does not believe 

the advertisement‟s appeal, he may ignore/reject the product 

or brand. 

The following table, as discussed in the middle of 

this chapter, authenticates the relationship between 

motivation by the ads and purchase of products. 

“Purchases in the past 10 years” and “Motivation by the 

advertisements” 

Case Processing Summary 

"I have bought 

lot of things 

because of ads 

in the past 10 

years" * Ads 

have motivated 

me to buy 

things 

Cases 

Valid Missing Total 

N Percent N Percent N Percent 

800 100.0% 0 .0% 800 100.0% 

Chi-Square Tests 

Value 

df 

Asymp. Sig. 

(2-sided) 

Pearson Chi-Square 2.919E2 a 9 .000 

Likelihood Ratio 240.756 9 .000 

Linear-by-Linear 

Association 

N of Valid Cases 800 

154.807 1 .000 

a. 0 cells (.0%) have expected count less than 5. The 

minimum expected count is 9.36. 

Promotion or Contagion 

This stage happens according to the result of the 

Impact stage. If the viewer does not get impressed by an ad 

and does not purchase/consume the product concerned, he 

will not enter this stage. But when the viewer/consumer 

purchases and consumes the product, he enters this stage. If 

the viewer concerned is satisfied with the performance of 

the products, he may share his joy and experience with his 

home mates, colleagues, friends, etc. This will directly or 

indirectly promote the product or brand concerned. 

But, when the viewer becomes dissatisfied with the 

performance of the product/brand, or feels deceived by the 

false hope given by an advisement, he may criticize and 

propagate against the advertisement or the product 

concerned. This may be called „Behaviour-contagion‟. 

Thus the advertisements intervene the consumer 

behaviour through the five stages as shown the conceptual 

model developed by the author. Here, the fifth stage is not 

analyzed or tested by the researcher, in the present study. 

Hence, the model is left for the testing and further analysis 

of the future research. 

References 

1. Antonio G. Chessa and Jaap M. J. Murre, “A Neuro 

cognitive Model of Advertisement Content and 

Brand Name Recall”, Marketing Science, Vol. 26, 

No. 1, Jan. - Feb., 2007, pp. 130-141. 

2. Brad J. Bushman Colleen M. Phillips, “If the 

Television Program Bleeds, Memory for the 

Advertisement Recedes”, Current Directions in 


Psychological Science [A Journal of the 

Association for Psychological Science] April 2001 

vol. 10 no. 2 43-47. 

3. Prashant Malaviya, Jolita Kisielius and Brian 

Sternthal, “The Effect of Type of Elaboration on 

Advertisement Processing and Judgment” Journal 

of Marketing Research Vol. 33, No. 4 (Nov., 

1996), pp. 410-421, Published by: American 

Marketing Association. 

4. Rajat Acharyya and Debjani Mukherjee, 

“Advertisement and Markets”, Economic and 

Political Weekly, Vol. 38, No. 50 (Dec. 13-19, 

2003), pp. 5236-5239. 

5. William O. Bearden, Robert S. Headen, Jay E. 

Klompmaker and Jesse E. Teel, “Attentive 

Audience Delivery of TV Advertising Schedules”, 

Journal of Marketing Research, Vol. 18, No. 2 

(May, 1981), pp.187-191. 

6. Xinshu Zhao and Steven H. Chaffee, Campaign 

Advertisements Versus Television News as 

Sources of Political Issue Information, The Public 

Opinion Quarterly, Vol. 59, No. 1 (Spring, 1995), 

pp. 41-65. 

7. Johanna Jansson Rajakaski, Regina Simonsson, 

“The subject of celebrity endorsement: what it was 

and what it has become”, Research Thesis 

Submitted to LULEA University of Technology, 

Sweden, 2006. 

8. Maria Ersson, Ulrika Köbin, “Children‟s 

perception of TV-advertising: a case study of 3rd 

graders in Sweden”, Research Thesis Submitted to 

LULEA University of Technology, Sweden, 2006. 

*** 


“Corporate Social Responsibilities” with Reference To 

ITC Ltd. – A Case Study 

Venukumar G,Asst. Professor, jayamukhi Institute of technological sciences, Narsampet, Warangal 

Abstract 

Corporate Social Responsibility (CSR) is becoming an 

increasingly important activity to businesses nationally and 

internationally. As globalization accelerates and large 

corporations serve as global players , these corporations 

have progressively recognized the benefits of providing 

CSR programs in their various locations. CSR activities are 

now being undertaken throughout the globe. 

Corporate Social Responsibility is the continuing 

commitment by business to behave ethically and contribute 

to economic development while improving the quality of 

life of the workforce and their families as well as of the 

local community and society at large. In this study an 

attempt is made to know how organisations are conducting 

the corporate social responsibilities focusing on their 

employees and society. For this purpose a sample one 

organization is taken. Finally we can come to know after the 

study that how important to maintain the corporate social 

responsibilities for the welfare of the employees and the 

society. 

Concept of Corporate Social Responsibility: 

Corporate Social Responsibility is the continuing 

commitment by business to behave ethically and contribute 

to economic development while improving the quality of 

life of the workforce and their families as well as of the 

local community and society at large. 

There are different perceptions about CSR in the context of 

different societies across the world. Definitions are 

different as CSR is about capacity building for sustainable 

livelihoods. It respects cultural differences and finds the 

business opportunities in building the skills of employees, 

the community and the government, though CSR is about 

business giving back to society. Social responsibility 

becomes an integral part of the wealth creation process - 

which if managed properly should enhance the 

competitiveness of business and maximise the value of 

wealth creation in the society. When times get hard, there 

is the incentive to practice CSR more and better. If it is a 

philanthropic exercise which is peripheral to the main 

business, it will always be the first thing to go when push 

comes to shove. Operating a business in a manner that 

meets or exceeds the ethical, legal, commercial and public 

expectations towards the welfare of the society has the 

business of CSR. 

The European Commission explains the concept of 

CSR in an integrated manner. It says that „where the 

companies decide voluntarily to contribute to a better 

society and a cleaner environment‟ is the essence of CSR. It 

is a concept where the companies integrate social and 

environmental concerns with their business operations and 

in their interaction with their stakeholders on a voluntary 

basis is called CSR. 

In sum, these definitions of CSR focus on (i) the 

impact of the management of core business on society, and 

on the stakeholders, and (ii) the contribution of the 

management to the achievement of broader societal goals. 

Annexure 1 

One of the most frequently asked questions is t what does 

'Corporate Social Responsibility' mean? Is it a stalking 

horse for an anti-corporate agenda? Something which, like 

original sin, Different organisations have framed different 

definitions - although there is considerable common ground 

between them. For the purpose of this study CSR is defined 

as the business process to produce an overall positive 

impact on society. 

Companies need to answer to two aspects of their 

operations. 1. The quality of their management - both in 

terms of people and processes (the inner circle). 2. The 

nature of and quantity of their impact on society in the 

various areas. 

Outside stakeholders are taking an increasing interest in the 

activity of the company. Most look to the outer circle - what 

the company has actually done, good or bad, in terms of its 

products and services, in terms of its impact on the 

environment and on local communities, or in how it treats 

and develops its workforce. Out of the various stakeholders, 

it is financial analysts who are predominantly focused - as 

well as past financial performance - on quality of 

management as an indicator of likely future performance. 

OBJECTIVES OF THE STUDY 

By this Study people will able to….. 

• Understand what is the duty of organization in 

maintaining corporate social responsibility and Understand 

the impact of corporate social responsibility in the society 

• To Be clear about the organizational culture and 

whether it is “healthy” or “unhealthy” – in maintaining 

corporate social responsibility 

• Recognize the benefits of assessing the situation 

within the organization using audits 


• Have a personal action plan for immediate 

implementation in creating competitive advantage through 

CSR 

• Assess risks and opportunities before making 

capital investments or other business decisions 

• Align CSR strategies with organizational goals and 

capabilities to Evaluate current initiatives and consolidate 

efforts around key objectives 

• Present a business case for CSR initiatives 

• Implement CSR at all levels of the company 

• Understand how CSR directly affects current and 

future regulatory practices 

• Foster successful interaction with key internal and 

external stakeholders as well as governments and 

nongovernmental organizations (NGOs) 

About the company 

ITC Limited is apublic conglomerate company 

headquartered in Kolkata, India. Its turnover is $7 billion 

and a market capitalization of over $33 Billion. The 

company has its registered office in Kolkata. It started off as 

the Imperial Tobacco Company, and shares ancestry with 

Imperial Tobacco of the United Kingdom, but it is now fully 

independent, and was rechristened to Indian Tobacco 

Company in 1970 and then to I.T.C. Limited in 1974 

The company is currently headed by Yogesh Chander 

Deveshwar. It employs over 26,000 people at more than 60 

locations across India and is listed on Forbes 2000. ITC 

Limited completed 100 years on 24 August 2010. 

ITC has a diversified presence in Cigarettes, Hotels, 

Paperboards & Specialty Papers, Packaging, Agri-Business, 

Packaged Foods & Confectionery, Information Technology, 

Branded Apparel, Personal Care, Stationery, Safety Matches 

and other FMCG products. While ITC is an outstanding 

market leader in its traditional businesses of Cigarettes, 

Hotels, Paperboards, Packaging and Agri-Exports, it is 

rapidly gaining market share even in its nascent businesses 

of Packaged Foods & Confectionery, Branded Apparel, 

Personal Care and Stationery. 

ITC's aspiration to be an exemplar in sustainability practices 

is manifest in its status as the only company in the world of 

its size and diversity to be 'carbon positive', 'water positive' 

and 'solid waste recycling positive.' In addition, ITC's 

businesses have created sustainable livelihoods for more 

than 5 million people, a majority of whom represent the 

poorest in rural India. 

History OF ITC LIMITED 

The company was founded as Wills, Watkins & Co. by 

Henry Overton Wills I and his partner Watkins, who opened 

a shop in Castle Street, Bristol in 1786. After the retirement 

of his partner in 1789, it became Wills & Co… 

In 1826 his two sons, William Day Wills and Henry Overton 

Wills took over the company. The company pioneered 

canteens for the workers, free medical care, sports facilities 

and paid holidays. In 1830, the company was renamed W.D. 

& H.O. Wills. Their first brand was Bristol, made at the 

London factory from 1871 to 1974. Three Castles and Gold 

Flake followed in 1878 and Woodbine ten years later. 

In 1901 Sir William Henry Wills formed the Imperial 

Tobacco Company from a merger of W.D. & H.O. Wills 

with seven other British tobacco companies. Imperial 

remains one of the world's largest tobacco companies. 

Embassy was introduced in 1914 and re launched in 1962 

with coupons. The last member of the Wills family to serve 

the company was Christopher, the great great grandson of 

H.O. Wills I. He retired as sales 1969. 

In FMCG, ITC has a strong presence in: 

Cigarettes: W. D. & H. O. Wills, Gold Flake Kings, 

Gold Flake Premium, Navy Cut, Insignia, India Kings, 

Classic (Verve, Menthol, Menthol Rush, Regular, Mild & 

Ultra Mild), 555, Benson & Hedges, Silk Cut, Scissors, 

Capstan, Berkeley, Bristol, Lucky Strike, Players and Flake. 

Foods: (Kitchens of India; 

Ashirvaad,Minto,Sunfeast,Candyman,Bingo,Yippee, Sun 

feast Pasta brands in Ready to Eat, Staples, Biscuits, 

Confectionery, Noodles and Snack Foods); 

Apparel: (Wills Lifestyle and John Players brands); 

Personal care: (Fiama di Wills; Vivel; Essenza di 

Wills; Superia; Vivel di Wills brands of products in 

perfumes, hair care and skincare) 

Stationery: (Classmate and Paper Kraft brands) 

Safety Matches and Agarbattis: [Ship (through 

ownership of WIMCO); iKno; Mangaldeep; Aim brands] 

Other businesses include: 

Hotels: ITC's hotels (under brands including ITC 

Hotel Welcome Hotel) have evolved into being India's 

second largest hotel chain with over 80 hotels throughout 

the country. ITC is also the exclusive franchisee in India of 

two brands owned by Sheraton International Inc.- The 

Luxury Collection and Sheraton which ITC uses in 

association with its own brands in the luxury 5 star segment. 

Brands in the hospitality sector owned and operated by its 

subsidiaries include Fortune[disambiguation needed] and 

Welcome Heritage brands. 

Paperboard, Specialty Paper, Graphic and other 

Paper; 

Packaging and Printing for diverse international 

and Indian clientele. 

InfoTech (through its fully owned subsidiary ITC 

InfoTech India Limited which is a SEI CMM Level 5 

company) 

Corporate philanthropy 

• Classmate notebooks were launched with the 

initiative of contributing 1 rupee towards the education of 

poor children, from every four notebooks it sold. 

• Classmate, has launched a programme called 

Classmate Ideas for India challenge. The programme would 

be a part of the company's centenary initiative. The nationwide 

programme would invite ideas of the youth, who have 

the potential to transform India. Classmate Ideas for India 

challenge plans to reach out to 25 lakh students across 30 

cities, 500 schools and 200 colleges across the country. 


• ITC E-choupal creatively leverages information 

technology to set up a meta-market in favour of India's small 

and poor farmers, who would otherwise continue to operate 

and transact in 'un-evolved' markets. 

• As of July 2010, services through 6500 E-choupal 

across 10 states, reach more than 4 million farmers in about 

40,000 villages. Free access to Internet is also opening 

windows of rural India to the world at large. 

• ITC e-Choupal is now being regarded as a reliable 

delivery mechanism for resource development initiatives. Its 

potential is being tested through pilot projects in healthcare, 

educational services, water management and cattle health 

management with the help of several service providers 

including non-governmental organizations. 

Global and other Honors 

• ITC is the first from India and among the first 10 

companies in the world to publish its Sustainability Report 

in compliance (at the highest A+ level) with theest G3 

guidelines of the Netherlands-based Global Reporting 

Initiative (GRI), a UN-backed, multi stakeholder 

international initiative to develop and disseminate globally 

applicable Sustainability Reporting Guidelines. 

• ITC is the first Indian company and the second in 

the world to win the prestigious Development Gateway 

Award. It won the $100,000 Award for the year 2005 for its 

trailblazing ITC e-Choupal initiative which has achieved the 

scale of a movement in rural India. The Development 

Gateway Award recognizes ITC's e-Choupal as the most 

exemplary contribution in the field of Information and 

Communication Technologies (ICT) for development during 

the last 10 years. ITC e-Choupal won the Award for the 

importance of its contribution to development priorities like 

poverty reduction, its scale and replicability, sustainability 

and transparency. 

• ITC has won the inaugural 'World Business Award', 

the worldwide business award recognizing companies who 

have made significant efforts to create sustainable livelihood 

opportunities and enduring wealth in developing countries. 

The award has been instituted jointly by the United Nations 

Development Programme (UNDP), International Chamber 

of Commerce (ICC) and the HRH Prince of Wales 

International Business Leaders Forum (IBLF). 

• ITC is the first Corporate to receive the Annual 

FICCI Outstanding Vision Corporate Triple Impact Award 

in 2007 for its invaluable contribution to the triple bottom 

line benchmarks of building economic, social and natural 

capital for the nation. 

• ITC has won the Golden Peacock Awards for 

'Corporate Social Responsibility (Asia)' in 2007, the Award 

for „CSR in Emerging Economies 2005‟ and „Excellence in 

Corporate Governance' in the same year. These Awards 

have been instituted by the Institute of Directors, New Delhi, 

in association with the World Council for Corporate 

Governance and Centre for Corporate Governance. 

• ITC Hotel Royal Gardenia, Bangalore is the first 

Indian Hotel and world's largest, to get the LEED Platinum 

rating - the highest green building certification globally. 

• The Stockholm Challenge 2006 for the e-Choupal 

initiative. This award is for using Information Technology 

for the economic development of rural communities. 

• United Nations Industrial Development 

Organization (UNIDO) Award at the international 

conference on Sharing Innovative Agribusiness Solutions 

2008 at Cairo for ITC's exemplary initiatives in agro 

business through the e-Choupal. 

• The Corporate Social Responsibility Crown Award 

for Water Practices from UNESCO and Water Digest for its 

distinguished work carried out in the water sector in India. 

ITC also received the National Award for Excellence in 

Water Management 2007 in the 'beyond the fence' category 

from the CII Sohrabji Godrej Green Business Centre for its 

leadership role in implementing water and watershed 

management practices. 

• The watershed programme also won the Asian CSR 

Award 2007 for Environmental Excellence given by the 

Asian Institute of Management. The Award recognizes and 

honors Asian companies for outstanding, innovative and 

world-class projects. The Company also received the 

Ryutaro Hashimoto Incentive Prize 2007 for Environment & 

Development from the Asia Pacific Forum. This Award 

aims at promoting information dissemination of good 

practices towards sustainable development in the Asia- 

Pacific region. 

• The Readers' Digest Pegasus Award for corporate 

social responsibility, recognizing outstanding work done by 

socially conscious companies. 

• The Corporate Award for Social Responsibility 

2008 from The Energy and Resources Institute (TERI) in 

recognition of its exemplary initiatives in implementing 

integrated watershed development programmes across 7 

states in India. The company also won the award in 2004 for 

its e-Choupal initiative. The Award provides impetus to 

sustainable development and encourages ongoing social 

responsibility processes within the corporate sector. 

• The 'Enterprise Business Transformation Award' 

for Asia Pacific (Apac), instituted by Infosys Technologies 

and Wharton School of the University of Pennsylvania for 

its celebrated e-Choupal initiative. 

• The Best Corporate Social Responsibility Practice 

Award 2008 jointly instituted by the Bombay Stock 

Exchange, Times Foundation and the NASSCOM 

Foundation. 

• The NASSCOM – CNBC IT User Award 2008 in 

the Retail & Logistics category. The Company has been 

recognized for its pro-active and holistic approach to IT 

adoption and the seamless alignment of IT with business 

strategy. This is the fourth time that ITC has won Nasscom's 

Best IT User Award since it was instituted in 2003. 

• The Institute of Chartered Accountants of India 

Award for Excellence in Financial Reporting with its 

Annual Report and Accounts, adjudged as a commendable 

entry under the Category 'Manufacturing and Trading 

Enterprises‟. 

• The Business Today Award for the Best Managed 

Company in recognition of its outstanding initiatives in the 

consumer products segment. 

• Ranked no.63 in The Brand Trust Report published 

by Trust Research Advisory in 2011 

LIMITATIONS OF THE STUDY: 

• The Study aims at examining the level of job 

satisfaction among the employees, 


• But all the units of the organization may not be 

covered due there are many Departments and many 

employees, 

• There will be every possibility of deviation in the 

answering pattern from what the respondents really feel, 

• There will be every chance of misinterpretation of 

some question in such a case the response might be a vague. 

• The study also includes the distributors and their 

CSR policies of the organization. 

WOW PROGRAMME OF ITC 

This program is designed to help executives fully integrate 

social responsibility in ways that benefit both society and 

business. You will learn how to develop an overarching 

CSR strategy suited to the unique requirements of your 

company one that addresses the social, economic, and 

environmental effects as you better position your 

organization for immediate and future success. 

Increasingly, corporate executives must find new ways to 

address the social, economic, and environmental effects of 

doing business while balancing conflicting demands on their 

attention, time, and resources. Emphasizing the alignment of 

corporate social responsibility (CSR) with business strategy, 

this program helps you define priorities, integrate social 

responsibility throughout your business, and build social and 

business value. You will strengthen your ability to define 

and implement powerful CSR strategies that position the 

firm, its reputation, and its way of doing business for 

enduring success. 

Corporate Social Responsibility explores the challenges and 

opportunities of current CSR models, as well as the next 

generation of issues that business practitioners will face. 

New frameworks and concepts will help you sharpen your 

program's focus and integrate social responsibility 

throughout operations in order to position your firm for 

higher levels of success. 

This intensive program focuses on the practices of 

companies that have successfully created business and social 

value through focused, aligned, and integrated CSR 

programs. It provides the practical knowledge and insight 

you need to improve decision making, leverage partnerships, 

manage risk, and measure performance. 

The program is specifically designed for senior executives 

who direct corporate social responsibility programs or 

oversee departments such as public affairs, philanthropy, 

sustainability, environmental health and safety, or 

community affairs. Senior officers with profit-and-loss 

responsibilities will benefit from attending. 

Corporate Social Responsibility Practices - the survey on 

CSR is timely and apt. The survey is expected to facilitate 

formation of an alliance of CSR initiatives so that such 

initiatives can be further stream lined, focused and 

converged to a powerful force of intervention. One of the 

major objectives of the survey is to bring out in open the 

current status of CSR thereby giving both the NGOs and the 

common man an understanding of the various initiatives 

undertaken by corporates and the role that is played by the 

government in the field. 

CSR in India is in a very nascent stage. It is still one of the 

least understood initiatives in the Indian development sector. 

It is followed by a handful of public companies as dictated 

by the very basis of their existence, and by a few private 

companies, with international shareholding as this is the 

practice followed by them in their respective foreign country. 

Thus the situation is far from perfect as the emphasis is not 

on social good but rather on a policy that needs to be 

implemented. 

A lack of understanding, inadequately trained personnel, 

non availability of authentic data and specific information 

on the kinds of CSR activities, coverage, policy etc. further 

adds to the reach and effectiveness of CSR programmes. But 

the situation is changing. And CSR is coming out of the 

purview of „doing social good‟ and is fast becoming a 

„business necessity‟. The „business case‟ for CSR is gaining 

ground and corporate houses are realising that „what is good 

for workers - their community, health, and environment is 

also good for the businesses. 

BENFITS AND OTHER INCENTIVES FOR THE 

EMPLOYEES 

ITC is able to produce 50 percent more salaries 

with compared to Government sectors and also other 

incentives it is able to provide benefits to many families 

directly or indirectly in the form of employment and other 

source of business 

Rs 20000 will be provided for every employee to 

purchase ITC products any where per annum 

Full health insurance for the whole family of the 

employee of the organisation will be provided by the 

company 

Distributors said that company margins are good 

compared to their other business 

Conclusions: 

So here in this study the risk has be taken is concentrating 

on the companies interest in maintaining corporate social 

responsibility. The way the individuals and organizations 

are about corporate social responsibility and how the 

management is concentrating on to maintain for the welfare 

of the employees and the society, everything was discussed 

in this ongoing study with a sample selection from the 

organization and as well as from the society. Finally we can 

come to know after the study that how important to maintain 

corporate social responsibilities in the society and survive 

the situation and sustain in the competitive world. And there 

are different methods adopted by the company to maintain 

CSR in the society and as well as in the organizations. Now 

I can say that this world with CSR by every business 

organization will be a good way of developing the society is 

imposing good amount of pressure we pronounce it, and we 

use it. Finally we can come to know after the study that how 

important to maintain the corporate social responsibilities 

for the welfare of the employees and the society. But any 

how to sustain we need to manage it, and are doing now. 


References: 

Social Responsibility in India - edited by David 

Crowther & Renu Jatana, 2005 

New Perspectives on Corporate Social 

Responsibility - edited by David Crowther 

& Mustaffa Mohamed Zain, 2007 

Managing finance – a socially responsibly 

approach - David Crowther, 2004 

Introduction to Corporate Social Responsibility - 

Guler Aras & David Crowther, 2008 

Corporate Social Responsibility by David Crowther, 

Gueler Aras Publisher: BookBoon 2008 

Annexure 


Role of Supply chain in successful project delivery in 

Indian Construction Industry 

Krishnan Sampath, Research Scholar, Vinayaka Missions University 

Dr. N.Panchanatham, Professor and Head, Department of Business Administration, 

Annamalai University 

ABSTRACT 

Delays and disruptions have been the hallmark of 

construction projects in many countries. The Construction 

industry is large, volatile, and requires tremendous capital 

outlays. Project delays have been a topic of concern in the 

construction industry. They have become a universal 

phenomenon and are almost always accompanied by cost 

and time overruns. Journal articles reviewed in this paper 

confirmed this theory. Indian construction industry has been 

no exception to such delays. Supply chain management 

plays a critical role in eliminating such delays. This paper 

reviewed the role of supply chain in successful project 

delivery in Indian construction industry. 

Key words: Construction Projects, Delays, Project delivery, 

Supply Chain. 

INTRODUCTION 

Until few years ago, construction was seen as the 

most unorganized industrial sector. However, with opening 

up of Indian economy, many international players were seen 

investing in India with large projects in industrial, 

infrastructural and housing developments. Contrary to 

government projects, time value of project completion has 

gained significance due to arrival of private players. Hence, 

the project managers were forced to look for eliminating 

delays and disruptions, addressing risk management more 

effectively and improving the delivery process to enhance 

the customer values. Since delays and disruptions cause 

significant cost implications impacting the viability of 

projects due to cost and time overruns, modern day supply 

manager had to balance between best of costs and best of 

time for a best of products which became critical for the 

whole supply process, in time. Micro or internal challenges 

and macro, external challenges were to be tackled at every 

stage to post a successful story for every project after 

project. This became complementary to the job profile for 

the new age supply managers. Hence, it was felt to 

understand and analyze the importance of role of supply 

chain in this industry. 

REVIEW OF LITERATURE 

The Construction industry which was large and 

second only to agricultural industry required tremendous 

capital outlays. The construction industry was a vital 

component of the Indian economy (Choudhury and Khilathi, 

2007) which was developing quickly and consistently yearon-year 

with a growth rate of 96.7% since the beginning of 

the decade. Project delays were a topic of concern in the 

construction industry. They became a universal 

phenomenon and were almost always accompanied by cost 

and time overruns. Uncertainty in production schedules onsite 

was a common occurrence in construction. This 

uncertainty was a major driver of project costs. In 

construction, delays could be defined as the time overrun 

either beyond completion date specified in a contract, or 

beyond the date that the parties agreed upon for delivery of 

a project. Completing projects on time was an indicator of 

efficiency (Assaf and Hejji, 2006). 

In recent times, the theory of purchasing and 

supply operations was being widely studied under a variety 

of labels and for a number of reasons (Akintoye et al, 2000). 

However, he found that research on construction SCM was 

relatively scarce. Vollman et al. (1997) held that 

construction SCM was increasingly seen as a set of practices 

aimed at managing and coordinating the entire chain from 

raw material suppliers to end customers. Bontekoe (1989) 

developed a list of bottlenecks that hamper the application 

of logistics in construction which also had application for 

SCM. O'Brien (1999) noted that the existing manufacturing 

research in SCM, while useful, did not readily translate to a 

construction environment; given the transient nature of 

production in construction projects. It was recognized that 

SCM promises an engineering basis with which to design, 

plan, and manage construction projects in a collaborative 

manner. 

Although effective SCM was a key element in 

reducing construction costs (Atkin et al., 1995), Agapiou et 

al. (1998) noted that no studies did define what SCM was 

within the construction process. Understanding the 

complexity of the supply processes in the construction 

industry required application of deep-probing methodology 

(A. Dubois, L.-E. Gadde, 2000). 

In developing commercial projects in India, designs 

tend to change during construction to attract more tenants 

(Choudhury and Khilathi, 2007). There was a link between 

facility design and supply-chain performance. In many 

cases, these design changes could cause significant delays in 

supply of materials and inadequate inventory management 

thereby affecting the project procurement schedule. The lack 

of attention to quality by the design consultants was costly 

in time and money to all parties in the supply chain (Dubois 


and Gadde, 2000). The three categories of influence on a 

project supply chain were designers, vendors and sub 

contractors (Sofia & Cardosa, 1999). These pillars of a 

project were integrated together to build and deliver. Hence, 

any disruptions on these three would greatly affect the 

project performance and the delivery process. 

The construction industry product was in the nature 

of an investment service where the customer wield great 

influence on the final product in relation to its physical 

aspects (dimensions, application of materials, etc.) and the 

value of logistic parameters (delivery date, project duration, 

etc.), noted Akintoye et al (2000). Some of the supply chain 

components identified by Choudhury and Khilathi (2007) 

leading to time overruns were materials shortages and 

equipment shortages. The additional costs and efforts 

coupled with added / strategic inventory were some of the 

measures considered as insurance against disruptions / 

delays in the event of terrorist attacks or other acts (Sheffi, 

2001). 

Vidalis and Najafi (2002), in a major study of 

Florida construction environment observed that cost and 

time overruns were common problems in every construction 

project. Some of the reasons highlighted for these overruns 

were design error, poor co-ordination, inadequate scope etc. 

Delays could result in loss of time and money as well as 

inconveniences to the public and they are caused externally 

or internally. Some of the causes for delays were designers, 

owners, contractors, suppliers, governments, weather etc. A 

time overrun was simply the project’s duration difference 

between the project’s original contract time before the bid 

and its overall actual contract time at the end of 

construction. However, following were primary agents of 

delay found by them in their study such as design, change 

orders, lack of co-ordination, owners, consultants, changed 

site conditions etc. 

Governments and not suppliers could cause delays 

and disruptions due to enhanced vigilance and restrictions 

imposed on account of security threats out of terrorism 

related attacks there by pushing the enterprises to manage 

the supply chain under increased uncertainty argued Sheffi 

(2001). He underlined the challenge of maintaining supply 

lines while not incurring high costs on extra inventory or 

loose money on delayed supplies. 

Tumi et al (2009) brought out that construction was 

the primary contributor to economy in Libya than other 

industries. The factors brought forward by them for 

construction delays were no different. Increased time, costs, 

loss of revenue / productivity, litigations etc were some of 

the consequences of delays in Libyan construction industry. 

The Nigerian experience was studied and 

documented by Ademeso and Windapo (2008). They held 

the common view similar to other references cited above 

that construction projects were known to experience time 

delays with Nigeria being no exception. Some of the causes 

focused by them for delays included poor project 

management, finance and payment for completed works, 

change in site conditions, shortage of materials, design 

changes, sub contractors, price fluctuations, inaccurate 

estimates, additional work etc. 

Similar to other demography, Kuwait too had its 

share of delays, cost and time overruns. This was revealed in 

a study by Koushki et al (2004). The identified cost overrun 

factors were change orders, financial constraints and lack of 

experience, while cost overruns included material related 

and contractor related problems. Their study concluded that 

factors such as error in drawings, payment related issues, 

material scheduling, weather conditions, geological 

problems etc were prime for causing cost and time overruns. 

Couto and Teixeria (2007) on the Portuguese 

construction observed that the consequences of time 

overruns were almost always serious and hard to resolve. 

The study of Portuguese construction delays by them 

revealed that responsibility for delays were ascribed to all 

parties of construction process. 

Irfan et al (2008) studied Iran construction projects 

and brought out that on-time completion and conformity 

with assigned cost of every project or plan was one of the 

most important factors in success of a project. Some of the 

categories of factors identified by them were owner, 

contractor and third parties. 

Mahbashi (2007) on Saudi construction industry 

said that SCM in the Saudi construction industry was still at 

its infancy but growing awareness of the concept was 

evident. The study revealed that contractors were more 

oriented towards clients rather than their suppliers in the 

supply chain. Construction main contractors remained 

relatively unsophisticated in their approach to the supply 

chain. 


The research strategy extended to discover impact 

of plethora of causes that lead to considerable losses and 

delays due to existence or non-existence of construction 

supply chains. The following approach has been adapted in 

this study: 

- A review of literature on delays and 

disruptions in construction industry of 

other countries 

- A survey among managers and 

executives and practitioners of SCM to 

appropriately understand and display 

facts and figures about role of SCM in 

eliminating delays and disruptions in 

construction industry 

HYPOTHESIS 

The researcher through primary and secondary data set out 

to examine the following hypotheses which were tested in 

this study. 

a) Disruptions and delays in supply process affect 

the project delivery 

b) Owner and type of ownership were primary 

factors in causing considering delay in 

construction projects 


POPULATION, SAMPLING AND SAMPLING SIZE 

The focus of the selection of sample size have large 

representation of professionals and practicing managers 

from this industry and covered working executives out of 

supply management in order to solicit a different perspective 

on the questions raised on supply process and management. 

The structurally disorganized focus group was to help in 

arriving at judicious evaluations with liberal input SCM 

models from various countries. 

The population was selected under convenient 

sampling design among the members of Indian Institute of 

Materials Management (IIMM) at Tamilnadu level and 

among the Alumni of IIM Calcutta of a particular year, 

2006-07. The population from IIMM represented different 

industries which had similar characteristics and constraints 

(Sandberg, 2007) in supply chain and the population from 

IIM-C had many similar logistics challenges in common 

from process point of view since they represented top 

management of various industries. 

DATA COLLECTION METHODS AND TOOLS 

Primary data was collected through a structured 

questionnaire. An online questionnaire using Google forms, 

accompanied by a covering letter designed was sent to the 

sample lot selected. 

- The questionnaire had four parts viz., a) 

Demographic section, b) SCM 

information, c) Supply Process and 

Management and d) Psychographic 

section. 

- Section (a), the demographic section had 

23 questions related to the back ground 

of the individual and industry profiling. 

- Section (b) or the SCM information 

section did largely deal with SCM 

information about the individual and the 

respondent’s organization. The numbers 

of questions were four with multiple 

selection choices. 

- Section (c)- The questionnaire was 

designed to have a mix of general SCM 

and specific to construction industry. 

Each factor had four statements with 5 

point likert scale ranging from ‘Strongly 

agree’ to ‘Strongly disagree’. 

The source of secondary data were research 

journals, white papers, books, popular journals, articles, 

research dissertations, institutional publications, newsletters 

and internet resources which are historical and cannot be 

altered. 

Questionnaire was sent via email and followed up 

with the target population through telephone. The gross 

response rate was 40.28% (257/638). Out of 257 received 

questionnaires, 17 were rejected because they were 

duplicated and incomplete in many respects. Therefore, the 

net response rate was 37.62% (240/638) which was 

considered a satisfactory response rate for the purpose of 

this research. Forslund (2004) identified that the response 

rates ranged from 5% to 58% in research projects using 

questionnaire survey methods. However, 20% response rate 

was suggested by Forza (2002) for similar questionnaires. 

DATA ANALYSIS 

Analysis tool SPSS, version 13 was used to analyse 

the data collected. Analytical tools such as one way 

ANOVA (Analysis of Variances) and regression analysis, 

mean and standard deviation, multiple co-relation and 

frequency tests were used. 

ANALYSES AND DISCUSSIONS 

Table-1: Regression analysis for dependent variable - 

Disruptions with independent variables 

From the observed R Square value 0.352, it was 

inferred that the independent variables have 35.2% 

influences on SCM factor – disruptions. It was also 

confirmed by the obtained. 'f' value 5.361 which was 

significant at 0.01 level. Among the selected independent 

variables viz., gender, age, residence and work location 

types, educational qualifications, management position, 

SCM education, overall experience, SCM experience and 

SCM knowledge were found to influence the disruptions. 

There were many uncertain moments in a supply 

process. Supply chains and disruptions were synonymous in 

organizations risk management strategy. A fire accident few 

years ago in Hanil Lear, the only vendor then to supply car 

seats, near Chennai put Hyundai motors operations on hold 

for three good days. So was the recent case of Tata Motors 

short in production targets with Mico, the fuel injection 

pump vendor, caught under the clouds of recent Jaipur Oil 

inferno. Labour unrests in auto components hub of India- 

Gurgaon pushed many automobile manufacturers in 

hardship. Delays can result in loss of time and money as 

well as inconveniences to the public and they are caused 

externally or internally (Vidalis and Najafi, 2002). Some of 

the causes for delays in construction industry were 

designers, owners, contractors, suppliers, governments, 

weather etc. 

Low cost sourcing and just in time were also risks 

which can cause disruptions stretching farther than they’ve 

ever stretched in the past and resultant fear is consequences 

of a more severe disruption – read risk, commented Rudd 

(2006). Supply chain disruptions might also reduce the 

shareholders value and opportunity costs in time sensitive 

products or market. In disaster induced disruptions, a 

carefully calculated risk management policy alleviates 

adverse impacts of such disruptions (Papadakis, 2002). 

Table-2:ANOVA Test - Type of ownership pattern Vs 

SCM Factors 

Among the 24 dependent variables, owner/client, project 

management characteristics, price, production perspective, 

collaboration results, IT in SCM and sustainable SCM 

whose P values are 0.002, 0.007, 0.036, 0.003, 0.003, 0.006 

and 0.008 were only been found to have significant 

association (29.2%) with the dependent variable - type of 


ownership pattern. All other variables (70.8%) were having 

insignificant association. 

Managers or the owners of the supply chains, typically 

senior management or the owners of the organization, their 

ability to recognize the importance and contribution of 

supply chains (Fawcett et al, 2005) as value chains, was 

much left to be desired. The lack of such initiatives reflects 

the results of the above analysis. Speh (2008) rued that firms 

did not fully realized the potential benefits associated with 

the SCM mandate, even with companies which scripted 

success internationally. Supply chain leadership must be 

seen as developing and demonstrating a transformational 

leadership style (Defee et al, 2009) and such culture was not 

present in current scheme of things. Very few organizations 

were having dedicated supply chain leadership. 

Kidd et al (2003) underscored the role of small and medium 

enterprises - which he pegged at a staggering 95% world 

wide- in implementing the SCM. If these firms supported 

and acted as feeder companies for the balance 5%, the 

responsibility of effective supply chain management shifts 

to majority. In this study, among the majority of the 

organizations, the respondents belong to privately held and 

in some cases publicly held enterprises. In such cases, the 

ownership has to demonstrate sufficient support to 

sustainability of SCM in the form of adequate 

organizational, functional and financial independence for 

the SCM leadership to reap the benefits of value chain. 

Institutional support played a critical role in developing such 

skills among the owner community such as CMAA (2002) 

which placed greater emphasis on owners (read as top 

management) in efficient delivery of projects in construction 

industry. Shehu, and Akintoye (2010) predicted that lack of 

commitment from business leaders was a real challenge in 

implementation of SCM related programs. 

Table-3: Regression analysis for dependent variable - 

Owner / Client with independent variables 

From the observed R Square value 0.214, it was inferred 

that the independent variables had 21.4% influences on 

SCM factor - Owner / Client. It was also confirmed by the 

obtained. 'f' value 2.682 which was significant at 0.01 level. 

Among the selected independent variables viz., age, 

educational qualifications, management position, SCM 

experience, type of organization, company position in SCM 

structure were found to influence the owner/client. Similar 

results of significant influences were also found in the 

results of ANOVA analysis for these independent variables 

and the dependent variable – owner / client. 

Such a strong relationship indicated that owner / client 

actions did have significant association with these 

independent variables. Under such circumstances any 

positive or upward change in the management position or 

the educational qualifications or the new SCM concepts 

implemented by the owner must have significant 

improvements. This signified the importance of such 

relationship between various actors, attributing them to the 

impact on a company’s abilities / performance in terms of 

supply chain Although this being the case, there were many 

other factors which did not have such strong influences.. 

However, the lower R-Square value did indicate that not all 

the attributes must have such significant influence. 

Integration was the key component of any supply chain. 

Companies increased their focus by getting into clients 

supply chain (Pires et al, 2008) by adapting supply chain 

process across all stake holders. Similarly, company 

position in terms of supply chain structure coupled with 

SCM experience has greater significance in relationship 

with the owner / client. Tumi et al (2009) in a study on 

Libya’s construction industry brought out that client 

themselves and the contractors were one of the delay 

factors. 

HYPOTHESES TESTING 

Disruptions and delays in supply process affect the 

project delivery: This hypothesis was tested using 

regression analysis on dependent variable ‘Disruptions’ with 

independent variables. It was observed that at 35.2%, the 

dependent variable did show significant association with the 

independent variables at 0.01% levels. Therefore the 

hypothesis was accepted at 0.01% levels and concluded that 

the dependent variable ‘disruptions’ have significant 

association with independent variables which directly relates 

to the impact of such delays on the project delivery process. 

Owner and type of ownership were primary factors in 

causing considering delay in construction projects: This 

hypothesis was tested using single ANOVA and multiple 

regression analysis on dependent variables with independent 

variables. The variables ‘type of ownership (29.2%)’ and 

‘owner (21.4%)’ was found to be insignificantly influencing 

the independent variables at 5% and 0.01% respectively. 

Therefore the hypothesis was rejected and concluded that 

the supply chain process has far more significant influence 

on the successful project delivery process than individual 

actors or the stakeholders. 

CONCLUSION 

The scope for further research lies in examining the role of 

process element of supply chains and contribution by all 

other stakeholders in successful completion and delivery of 

construction projects. Strong academic evidence has been 

found that viewed SCM as a process management, 

management structure / positions in individual organizations 

did not influence the SCM factors. However, collective 

SCM leadership is considered as an important development 

trigger for such process management approach. In this 

study, among the majority of the organizations, the 

respondents belong to privately held and in some cases 

publicly held enterprises. In such cases, the ownership has 

to demonstrate sufficient support to sustainability of SCM in 

the form of adequate organizational, functional and financial 

independence for the SCM leadership to reap the benefits of 

value chain. This aspect has significant scope for future 

research. 

The genesis of modern day supply chain is that challenges 

have forced companies to look beyond and shift 

fundamentally at what is best to every one in the chain than 

for the individual organizations. 


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Annexure 

Table-1: Regression analysis for dependent variable - Disruptions with independent variables 

Model R R Square Adjusted R Std. Error of the Estimate 

Square 

1 0.593 0.352 0.286 0.52312 

ANOVA 

Model Sum of Square df Mean Square f Sig 

Regression 32.279 22 1.467 5.361 0 

Residual 59.384 217 0.274 

Total 91.663 239 

Sl No Independent variables B Std Error Beta t Sig 

1 (Constant) 1.560 0.544 2.870 0.005 

2 Gender 0.977 0.262 0.247 3.727 0.000 

3 Age -0.250 0.065 -0.290 -3.855 0.000 

4 Residence location type -0.052 0.019 -0.187 -2.794 0.006 

5 Work location type 0.304 0.056 0.356 5.406 0.000 

6 Educational Qualification 0.115 0.033 0.216 3.464 0.001 

7 Present Occupation 0.042 0.065 0.043 0.651 0.516 

8 Management Position -0.221 0.080 -0.179 -2.760 0.006 

9 SCM Qualification 0.055 0.023 0.148 2.415 0.017 

10 Overall experience 0.328 0.086 0.236 3.820 0.000 

11 SCM Experience 0.190 0.080 0.154 2.361 0.019 

12 Experience in current 0.107 0.067 0.098 1.601 0.111 

position 

13 Work Environment -0.041 0.047 -0.050 -0.869 0.386 

14 Area of SCM practicing 0.016 0.028 0.033 0.576 0.565 

15 SCM knowledge 0.163 0.062 0.150 2.635 0.009 

16 Location of company -0.012 0.030 -0.023 -0.407 0.685 

17 Type of Orgn 0.005 0.035 0.010 0.154 0.878 

18 Type of Construction 0.033 0.029 0.095 1.151 0.251 

Company 

19 Type of Enterprise 0.035 0.045 0.055 0.794 0.428 

20 Company Position in SCM 0.017 0.035 0.040 0.495 0.621 

21 Type of Supply Structure in 0.014 0.041 0.024 0.339 0.735 

The Org 

22 Co SCM Info 0.040 0.025 0.148 1.556 0.121 

23 SCM Concepts -0.024 0.031 -0.077 -0.786 0.432 


Table-2:ANOVA Test - Type of ownership pattern Vs SCM Factors 

S.No SCM Factors N F Value Sig Scheffe Value 

1 Owner / Client 240 4.494 0.002 2 Vs 5, 3 Vs 5, 4 

Vs 5 

2 Design 240 0.310 0.871 

3 Contractor actions 240 0.449 0.773 

4 Finance 240 2.344 0.056 

5 Supplier / Sub Contractor role 240 0.871 0.482 

6 Unethical Practices 240 0.591 0.669 

7 Project Management Characteristics 240 3.610 0.007 

8 Product availability 240 1.448 0.219 

9 Price 240 2.619 0.036 4 Vs 5 

10 Quality and Specifications 240 1.077 0.368 

11 Delivery / Logistics 240 0.828 0.508 

12 Disruptions 240 1.515 0.198 

13 Supply Chain Relationship 240 0.49 0.743 

14 Management / Organization level 

240 0.027 0.999 

controls for Successful SCM 

15 Risk Management 240 0.312 0.870 

16 Time Value 228 1.856 0.119 

17 Managerial implications 229 1.094 0.360 

18 Future of SCM 240 0.139 0.968 

19 Missing Connectors in SCM 240 0.228 0.923 

20 Values in SCM 240 0.613 0.654 

21 Production Perspective 240 4.117 0.003 1 Vs 2 

22 Collaboration results 240 4.05 0.003 1 Vs 2 

23 IT in SCM 240 3.675 0.006 1 Vs 2 

24 Sustainable SCM 240 3.543 0.008 1 Vs 2 

Table-3: Regression analysis for dependent variable - Owner / Client with independent variables 

Model R R Square Adjusted R Std. Error of the Estimate 

Square 

1 0.462 0.214 0.134 0.60988 

ANOVA 

Model Sum of Square df Mean Square f Sig 

Regression 21.95 22 0.998 2.682 0 

Residual 80.713 217 0.372 

Total 102.663 239 


Sl No Independent variables B Std Error Beta t Sig 

1 (Constant) 3.597 0.634 5.676 0.000 

2 Gender 0.348 0.305 0.083 1.138 0.256 

3 Age -0.163 0.076 -0.179 -2.162 0.032 

4 Residence location type -0.001 0.022 -0.005 -0.063 0.950 

5 Work location type -0.024 0.065 -0.027 -0.368 0.713 

6 Educational Qualification 0.082 0.039 0.146 2.116 0.035 

7 Present Occupation 0.065 0.075 0.063 0.865 0.388 

8 Management Position -0.374 0.093 -0.285 -4.003 0.000 

9 SCM Qualification -0.008 0.027 -0.019 -0.284 0.776 

10 Overall experience -0.008 0.100 -0.006 -0.083 0.934 

11 SCM Experience 0.191 0.094 0.146 2.036 0.043 

12 Experience in current 0.062 0.078 0.053 0.792 0.429 

position 

13 Work Environment 0.017 0.055 0.019 0.308 0.758 

14 Area of SCM practicing -0.044 0.032 -0.087 -1.366 0.173 

15 SCM knowledge 0.018 0.072 0.016 0.255 0.799 

16 Location of company 0.009 0.035 0.017 0.265 0.791 

17 Type of Orgn -0.109 0.041 -0.199 -2.666 0.008 

18 Type of Construction 0.025 0.034 0.068 0.745 0.457 

Company 

19 Type of Enterprise -0.028 0.052 -0.041 -0.539 0.590 

20 Company Position in 0.131 0.040 0.290 3.231 0.001 

SCM 

21 Type of Supply Structure 0.030 0.048 0.047 0.617 0.538 

in The Org 

22 Co SCM Info -0.043 0.030 -0.152 -1.455 0.147 

23 SCM Concepts 0.056 0.169 1.563 0.119 

*** 


Levels of Human Resource Development in Mandya 

District of Karnataka – A Geographical Study 

Dr. D. Mahesha, Department of Studies in Geography, University of Mysore, 

Manasagangotri, Mysore 570006 

Dr. B.N. Shivalingappa, Associate Professor, Department of Studies in Geography, 

University of Mysore, Manasagangotri, Mysore 570006 

Introduction 

The population quality of region is an extensive and 

comprehensive concept. It includes the health, nutritional 

status, literacy and education status, employment status and 

urbanization of the any region. And it plays a significant 

role in the exploitation of basic resource and observation at 

any stage; hence, it plays a crucial role in the regional 

development. 

The measurement of development of human 

resources is a not easy task as it is the composite form of 

various indicators relating to mental and physical standards 

of the people. It is uneven from one region to another due to 

variation in natural and human characteristics in space and 

time. It indicates imbalance in the overall development of 

the area. 

The development of human resource of a country, 

area of a region is based on some socio economic factors 

and therefore our national government has launched many 

socio economic programmes like education, health, work 

and supply of electricity and food for all villages, 

irrigational facilities, industrialization, urbanization, and 

other programmes which have been introduced to the 

masses with ambition to strengthen and development of 

human resources. Indeed, it is necessary to identify the areas 

which are backwardness with respect to the development of 

particular resource, with this main objective, an attempt has 

been made in this paper to identify backwardness in human 

resource development and its pattern during the decade of 

1991 and 2001. 

Methodology 

To identify backwardness a statistical calculation 

has been per found using the secondary data from 1991 and 

2001 census of Mandya district for the six selected 

indicators to get their index value. This method has applied 

by Tripati and Tiwari (1995). Following are the indicators 

and their formula to calculate the index. 

Study Area 

The Mandya district lies between North latitude 

12 o 13‟ to 13 o 04‟ and East longitudes 76 o 19‟ to 77 o 20‟. The 

district is bounded on northwest by Hassan district, on the 

north and northeast by Tumkur district, on the east by 

Bangalore district and south by Mysore and Chamarajnagar 

district. Total geographical area of the district is 4961 

sq.kms. The district is divided in to seven taluks coming 

under two sub divisions. The Mandya sub division 

comprises Mandya, Maddur and Malavalli taluks. The 

Pandavapura sub division comprises of Pandavapura, 

S.R.Patna, Nagamangala and K.R.Pet taluks. 

Urbanization 

Urbanization is closely linked to modernization, 

industrialization, and the sociological process of 

rationalization. The relationship between urbanization and 

development is both positive and circular in nature. 

Urbanization has given rise to many problems over the years 

in the developing countries, like India. It is closely 

associated with the pace of socio economic development of 

the area and therefore the degree of human resource 

development index value of urbanization has been 

calculated as fallows, 

UPI 

TPI 

Where 

x100 

UPI= Urban Population of I Taluk 

TPI= Total Population of I Taluk 

Literacy 

Literacy is considered a fairly reliable index of 

socio economic and cultural development. It is essential for 

eradicating poverty. It is therefore treated as the only base 

on which edifice of the development of human resource can 

be effected (Chandan R.C, 2006). Index value of literacy has 

been calculated on the basis of fallowing formula. 

LPI x100 

TPI 

Where 

LPI= Literate Population of I Taluk 

TPI= Total Population of (above seven Years) I Taluk 

Female Literacy 

Indian literacy is characterized with sharp 

difference between the literacy rate of male and female 

population of rural and urban area and various population 

sub groups. In fact, females have been neglected for long. 

They are not considered on equal footing for as an important 

variable to measure the level of human resource 


development. Index value of female literacy has been 

calculated on the basis of fallowing method. 

FLPI x100 

TFPI 

Where : 

FLPI= Female Literate Population of I Taluk 

TFPI= Total Female Population of 

(above seven Years) I Taluk 

Marginal Workers 

The marginal workers concept was adopted for the 

first time during 1981 census. It means those people who 

had not worked for the major part of the year i.e. those who 

had not worked for less than six months or 183 days. This 

indicates the poor economic base of the region. Smaller 

number of marginal workers indicates a higher degree of 

human resource development. Index value of marginal 

workers has been calculated as fallows. 

MWI x100 

TPI 

Where : 

MWI= Marginal Workers in I Taluk 

TPI= Total Population of I Taluk 

Female Workers 

Women constitute a significant part of the work 

force of India: female workers in Mandya district provide 

proof of the exhibit of marginalization of female workers. 

Among these majority of women workers are employed in 

the rural area particularly in agricultural workers and 

smallest group employed in urban area particularly 

household industry in petty traders, and services, building 

construction, etc. large number of female workers indicate 

the high degree of human resource development. Index 

value of female workers has been calculated on the basis of 

fallowing method. 

FWI 

TWI 

x100 

Where : 

FWI= Female Workers in I Taluk 

TWI= Total Workers in I Taluk 

Non Agricultural Workers 

In a developing country like India, the percentage of 

Agricultural workers or primary workers is high. Hence, the 

number of non agricultural workers may be regarded as a 

potential fool to measure the development of human 

resource. Index value of non agricultural workers has been 

calculated by the following formula. 

NAWI x100 

TWI 

Where 

NAWI= Non agricultural Workers in I Taluk 

TWI= Total Workers in I Taluk 

Now all the above values of indicators have been 

calculated for each taluk and each index has been calculated 

by average index of the study area to measure the level of 

human resource development in the taluks. I a taluk have 

index value less than the study area, the district has been 

regarded as backwardness with reference to the particular 

indicator but in the case of marginal workers, the calculation 

will be in reverse way. If the index value of marginal 

workers of taluk is higher than the study area, the taluk will 

be treated as backward with reference to marginal workers. 

Ultimately according to the index value the whole district 

has been divided into four regions on the basis of fallowing, 

if a taluk has index of any one indicator less than the study 

area it will be treated as an area of least backwardness, if a 

taluk gas indices of two and three indicators less than the 

study area these will be treated as areas of moderately 

backward. Similarly taluk with more than three indices less 

than the study area is treated as high backward. But if a 

taluk has indices of all indicators higher than the study area 

it will be treated as an area with fully developed human 

resources. 

Discussion and Analysis 

To analyze the comparative development of human 

resources in the taluk wise, the census data of 1991 and 

2001heve been utilized. During 1991, Mandya taluk had no 

backwardness in human resource development and therefore 

it may be called “Developed Area” in respect of human 

resource. In 2001, also the same taluk was recorded under 

this category of backwardness with the indices of all the 

indicators more than the study area. The remaining taluks 

witnessed backwardness in one or more indicators. In this 

context only five indicators were taking to analyze the 

Backwardness which are urbanization (A), Literacy (B), 

Female literacy (C), Marginal Workers (D) and Non 

agricultural workers (E). At this point indicator of female 

workers is neglecting due to the higher percentage of 

workers engaged in primary sectors. During 1991, 71.42 

percent taluks and backwardness in „A‟, 42.85 in „B‟ 42.85 

percent in C, 42.85 percent in „D‟ and 57.14 percent in E 

indicators. 

The situation is quite different in 2001, the number 

of taluks backward in C and D indicators increased during 

this decade, it means that the taluks of the district with 

reference to female literacy and marginal workers were not 

developed and in reaming indicators A,B, and E the degree 

of backwardness has remained constant. In 2001, the 

percentage of backwardness in A, B, C, D and E were 71.42, 

42.85, 71.42, 85.71 and 57.14 percent respectively. The 

taluks falling in different categories of backwardness are 

mentioned in the table 1 and 2. 

Area of Least backwardness 

During the 1991, Srirangapattana was least in 

backwardness, in 2001, again has been registered under 

same category, in 1991, it was back ward in E indicator only 

while in 2001 it was backward in indicator D. under the 

category of least backwardness no other taluk has been 

registered. 


Area of Moderate backwardness 

As many as 57.14 percent of the taluks were the 

areas of moderate backwardness, which are Nagamangala, 

Krishnarjapet and Malavalli during 1991 census. 

Nagamangala taluk was backward in A and D indicators, 

K.R. Pet in A, D and E, Malavalli in A, B and C indicators. 

During 2001 all taluks slip down to very high backwardness 

group. 

Areas of High backwardness 

In this category more than three indicators ere 

recorded below average of study are. 28.57 percent of taluk 

(Pandavapura and Maddur) were the area of High 

backwardness in 1991. But in 2001, most of the taluks were 

registered in this category of high backwardness except 

Mandya and Srirangapttna taluks among these Maddur was 

highly backwardness in all the indicators. 

Conclusion 

The result of this study shows that part of the study 

area is not backward while a large part emerges as an area of 

extreme backwardness in human resource development. 

This situation is not desirable; attempts are needed to 

remove the deficiencies in taluks wherever they exist. 

Reference 

1. R. C. Chandana (2006) geography of Population, 

Kalyani Publication, New Delhi, P 344. 

2. Tripati R.S and Tiwari R.P (1995) Changing pattern in 

human resource development in Madhya Pradesh, 

geographical Review of India, Vol.57, No. 4, PP.376- 

381. 

3. Census of India, Mandya- District Primary census 

abstract- 1991. 

4. District at a Glance 2007-08, Zillapanchayat, Mandya. 

Taluks 

Annexure 

Table 1 Index of urbanization, Literacy, Female literacy, Marginal Workers and Non 

agricultural workers. 

Index of Index of Index of Index of 

urbanization Literacy Female Marginal 

Index of Non 

agricultural 

workers 

literacy Workers and 

A B C D E 

1991 2001 1991 2001 1991 2001 1991 2001 1991 2001 

Years 

Krishnarajapet 8.14 9.09 50.28 61.60 38.76 50.40 9.65 9.24 13.39 16.23 

Maddur 7.81 9.12 47.17 59.50 37.58 50.01 12.39 11.45 16.63 23.34 

Malavalli 14.09 14.23 44.67 55.70 35.76 46.90 5.04 10.75 23.31 30.01 

Mandya 31.40 32.34 47.98 65.90 38.60 57.50 3.10 3.60 28.71 38.26 

Nagamangala 11.35 8.41 51.94 62.00 39.95 50.40 8.16 8.26 15.51 21.74 

Pandavapura 11.98 10.46 45.13 56.70 34.19 46.70 4.41 10.18 20.68 19.50 

Srirangapattana 19.27 18.79 49.87 62.80 41.90 54.60 2.75 13.25 19.89 30.07 

District 16.23 16.03 48.15 61.00 38.11 51.50 5.84 8.95 21.81 26.56 

Source: Census of India, 1991, 2001. 

Table 2. Backwardness in Human Resource Development (1991 and 2001) in Mandya District 

Degree 

of 1991 2001 

Backwardness 

Area of Developed Mandya Mandya 

Area of Least Srirangapattna 

Srirangapattna 

backwardness 

Area of Moderately 

backwardness 

Area of High 

backwardness 

Nagamangala, Krishnarjapet 

and Malavalli 

Maddur and Pandavapura 

*** 

Nil 

Krishnarjapet Nagamangala, , Malavalli 

Pandavapura and Maddur 


Innovation of Fraud Deterrence System in the Organization 

using Forensic Accounting and Data Mining Techniques 

Pornchai Naruedomkul, Chulalongkorn University, Thailand 

Pannipa Rodwanna, Chulalongkorn University, Thailand 

INTRODUCTION 

It is undeniable that corporate fraud is one of the 

critical issues for the businesses around the world including 

Thailand. The 2010 Association of Certified Fraud Examiners 

(ACFE) Report stated that the loss due to fraudulent activities 

in the businesses was about 5-7% of the annual revenues in 

the U.S.A. (Table 1). The amount of loss due to occupational 

fraud and abuse did not decrease after the enacted of 

Sarbanes-Oxley Act and Statement of Auditing Standard 

(SAS) No.99 in 2002. 

Description 

1995-1996 2002 2004 2006 2008 2010 

Gross Domestic Products 6.67 10.00 11.00 13.04 14.20 58.00 

Loss to occupational fraud and abuse 0.40 0.60 0.66 0.65 0.99 2.90 

Loss to gross domestic products (%) 6.00 6.00 6.00 5.00 7.00 5.00 

Table 1: Estimated loss due to occupational fraud and abuse in U.S.A. 

Source: Adapted from [1] [2] [3] [4] [5] [6] 

In Thailand, KPMG Forensic conducted the fraud 

survey in 2005 and 2007 and it appeared that fraud risk was 

a major concern for businesses in Thailand [15]. The estimated 

financial loss in case of fraud detected in Thailand from 

2005 to 2007 is shown in Table 2. While the percentage of 

fraud less than a million baht (Thailand currency) has come 

down, fraud above a million baht has gone up. The survey 

also indicated that the fraud issues found in Thailand are 

also found in other countries [15]. 

Table 2: Estimated financial losses in cases of fraud detected 

in Thailand 

Source: Adapted from [14] 

After Enron and WorldCom collapsed, many 

organizations had established the policy and regulations to 

detect the internal fraud e.g. Sarbanes-Oxley Act, Statement 

of Auditing Standard (SAS) No.99 and International Standards 

on Auditing No. 240. In Thailand, Thai Standards Auditing 

No. 240 states that the auditor should ensure that the 

financial statements audited are free from fraud or error 

which is in line with International Standards on Auditing 

Year 

Amount 2005 2007 

Baht 10 million and above 11% 16% 

Baht 5 million to less than 10 million 5% 8% 

Baht 1 million to less than 5 million 15% 18% 

Baht 100,000 to less than 1 million 31% 27% 

Less than Baht 100,000 38% 31% 

No. 240. The Securities and Exchange Act 1992 of Thailand 

clearly defines that if the auditor finds any false supporting 

documents and/or incorrect recording in the accounts of a 

listed company, the auditor shall disclose the effects on the 

financial statement in the audit report. 

These regulations are used to detect the frauds 

which have already occurred in the business resulting in the 

loss or damage. It would be beneficial to the business if there 

was a system in place where fraud can be detected early so 

that it can be prevented or loss can be minimized as much as 

possible. 

Deterrence is the best way to prevent fraud before 

it happens which should reduce the loss or damage to the 

organization [31] [33]. To develop this system, it is important 

to understand the behavioral factors influencing a fraudster 

[26]. 

RESEARCH OBJECTIVE 

This research identifies the risk factors causing the 

fraudulent activities in the organization. A risk model to 

identify potential fraud and a fraud deterrence system are 

developed in the paper. 

LITERATURE REVIEW 

FRAUD DEFINITION 

Fraud can be defined in many ways. Reference [12] 

defined fraud as “Fraud (false pretense) involves intentional 

and material misrepresentation of one or more material 

facts with the intent of taking of property from a victim. The 

misrepresentation must be more than mere sales hyperbole.” 

Albrecht (2003) defined fraud as “a representation 

about a material fact which is false and intentionally or 

recklessly so, which is believed and acted upon by the 

victim, to the victim’s damage” [cited in 27]. 

Oxford, dictionary of law (2003) defined fraud as 

“a false representation by means of a statement or conduct 

made knowingly or recklessly in order to gain a material 

advantage. If the fraud results in injury to the deceived 

party, he may claim damages for the tort of deceit. A 

contract obtained by fraud is voidable on the grounds of 

fraudulent misrepresentation” [17]. 

American heritage dictionary (second college edition) 

defined fraud as “a deception deliberately practiced in order 

to secure unfair or unlawful gain” [cited in 14]. 

Black’s law dictionary describes fraud as “the 

intentional use of deceit, a trick or some dishonest means to 

deprive another of his/her/its money, property or a legal 

right” [cited in 18]. 


Criminal Code of Thailand, B.E. 2499 (1956) as 

amended until the Criminal Code (No.17), B.E. 2547 

(2003), chapter 1, section 1 defined fraud as “To commit an 

act dishonestly means to do an act in order to procure, for 

himself or the other person, any advantage to which he is 

not entitled by law” [10]. 

For this research, the definition of fraud from 

Criminal Code, B.E. 2499 (1956) as amended until the 

Criminal Code (No.17), B.E. 2547 (2003) will be used to 

measure the behavior or act causing fraudulent. 

FRAUD CLASSIFICATION 

The type of fraud which is relevant to accountants 

and auditors is “occupational fraud” which is classified into 

the following categories [5]: 

1. Employee fraud/Asset misappropriation 

Employee fraud/Asset misappropriation is the most 

common type of fraud. It involves theft or misuse of an 

organization’s assets such as skimming revenues, stealing 

inventory, and payroll fraud. Asset misappropriation can be 

divided between cash schemes and non-cash schemes. Cash 

schemes involve the theft of money or other assets in the 

company. 

2. Corruption 

Corruption occurs when fraudsters wrongfully use 

their influence in a business transaction in order to procure 

some benefits for themselves or for other people, contrary to 

their duty to their employer or the rights of another such as 

accepting kickbacks or engaging in conflicts of interest. 

3. Fraudulent statements 

Fraudulent statement generally involves falsification 

of an organization’s financial statements such as overstating 

revenues and understating liabilities or expenses. 

FRAUD TRIANGLE 

Fraud triangle (Figure 1) was introduced by Donald 

R. Cressey in 1950 [29] describing the reasons why fraud is 

committed. 

Opportunity 

Pressure 

Fraud 

triangle 

Rationalization 

Figure 1: Fraud triangle 

Source: Adapted from [27] 

1. Pressure 

Pressure (incentive or motivation) refers to something 

that motivates people to be a fraudster. It may come from 

financial stress, gambling or other factors from personal life 

style. However, it is not necessary that people who are poor 

will be a fraudster; there is also a possibility for a wealthy 

person or top management of the company to commit fraud 

as well. 

2. Rationalization 

Most of the fraudsters do not have a criminal record 

[5]. Actually white collar crime has a personal code of ethics. 

“It is not uncommon for a fraudster to be religious” [29]. 

They steal the money or assets from the company and think 

that they will pay it back. Unfortunately, they never return 

the funds; hence, a fraud is committed. 

3. Opportunity 

The management of the firm understands the 

weaknesses in the internal controls of the company are and 

some managers are willing to use them to execute a fraud. 

Fraud is likely to occur in a situation where there 

are three factors combined; pressure, opportunity and 

rationalization [7]. Therefore, preventing fraud from occurring 

while putting in place the control mechanism to deter it can 

reduce the potential losses. 

RISK FACTORS AND RED FLAGS INDICATORS 

The top management of the firm should be alert to 

any warning signs that might indicate that fraud is taking 

place; these warning signs may be [1] [2] [3] [4] [5] [6] [9]: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Living beyond means 

Financial difficulties 

Control issues, unwillingness to share duties 

Unusually close association with vendor/customer 

Wheeler-dealer attitude 

Divorce/family problems 

Irritability, suspiciousness, or defensiveness 

Addiction problems 

Refusal to take vacations 

Past employment-related problems 

Complained about inadequate pay 

Excessive pressure from within organization 

Past legal problems 

Instability in life circumstances 

Excessive family/peer pressure for success 

Complained about lack of authority 

FORENSIC ACCOUNTING DEFENITION 

Bolgna and Linquist (1995) defined forensic 

accounting as “the application of financial skills and an 

investigative mentality to unresolved issues, conducted within 

the context of the rules of evidence” [cited in 11]. 

Webster’s dictionary defined forensic accounting 

as “belonging to, used in or suitable to court, of judicature 

or to public discussions, debate and ultimately dispute 

resolutions.” It is also defined as “an accounting analysis 

that is suitable to the court which will from the basis for 


discussion, debate and ultimately dispute resolution” [cited 

in 23]. 

ROLE OF FORENSIC ACCOUNTANT 

“The forensic accountants apply special knowledge 

in accounting, auditing, finance, quantitative methods, 

certain areas of law, research and investigative skills to 

collect, analyze, and evaluate evidential matter and to 

interpret and communication findings” [12]. A forensic 

accountant can be called “Sherlock Holmes” [12]. 

Joseph T. Wells, Chair of the Association of 

Certified Fraud Examiners states that an auditor cannot 

uncover all the frauds in the firm by performing an audit 

[16]. Hence, the forensic accountant is required to uncover 

fraud in the organization [25]. The survey conducted by 

Kessler International nationwide also revealed that 39 

percent of organizations surveyed need forensic accountants 

[23]. 

FORENSIC INVESTIGATION 

If there is any signal for fraudulent activities in the 

organization, a forensic accountant should conduct an 

investigation that includes the following steps: 

1. Collect the evidence 

A forensic accountant should collect as much 

evidence as possible. Some evidence is stored in the database 

of the company. However, some evidence may be stored 

with external sources e.g. government, bank etc. A forensic 

accountant should try to collect all information to support 

the case [12]. 

2. Interview and interrogate 

Forensic accountant should conduct an interview 

and interrogation as necessary to gather all information 

required to be the evidence. 

DATA MINING TECHNIQUE 

Data mining is a technique with an objective to 

mine large amount of data to discover previously unknown, 

action oriented, hidden trends, patterns and complex 

relationships. Discovery, predictive modeling and deviation 

analysis are three major activities of data mining techniques 

[24]. 

FRAUD DETERRENCE SYSTEM IN THE 

ORGANIZATION USING FORENSIC 

ACCOUNTING AND DATA MINING 

TECHNIQUES APPROACH 

The regulations enacted after Enron and WorldCom 

collapsed were the fraud detection in the financial statement. 

Therefore, the concept of fraud deterrence using data mining 

and forensic accounting is explored. It will be developed as 

a tool to deter fraud in the organization. The system to be 

developed will be a product innovation according to 

taxonomy of innovation [8] and a knowledge intensive 

business services (KIBS) [21]. 

CONCEPTUAL FRAMEWORK 

This research attempts to develop the fraud 

deterrence system for the organization. To develop such 

system, it is necessary to understand the risk factors influencing 

a fraudster to commit the fraud. The conceptual framework 

for this research is shown in Figure 2. 

In phase 1, from the background and literature 

review which consist of fraud auditing, forensic accounting, 

data mining technique, risk management and regulations 

related to fraudulent, the conceptual framework was built as 

shown in Figure 2. 

In phase 2, qualitative research was conducted with 

the 30 non-listed companies in Bangkok and quantitative 

research was conducted with the samples of 565 companies 

from the total listed-companies in the Stock Exchange of 

Market in Thailand and 500 non-listed companies in Bangkok. 

The differences of fraud risk factors between these two types 

of companies were compared. 

Samples of qualitative were selected using snowball 

method and in depth interviews were carried out. The samples 

for quantitative research were selected using Krejcie and 

Morgan method and simple random sampling technique and 

the questionnaire was provided to all sample companies 

[22]. 

In phase 3, attitude and behavior survey was 

conducted to collect the information from the participants. 

The samples were selected using Krejcie and Morgan 

method and simple random sampling technique and the 

questionnaire was again provided to all samples to complete. 

The findings of fraud risk factors from quantitative research 

and attitude and behavior survey were used to determine the 

important rules for fraud risk behaviors using association rule. 

In phase 4, the fraud deterrence model was developed 

based on the important rule findings in phase 3. 

In phase 5, system for fraud deterrence was 

developed based on fraud deterrence model in phase 4. The 

fraud deterrence system should perform the risk assessment 

based on risk management – principles and guidelines of 

International Standard (ISO 31000) [13] and rank the 

company as per the examples below: 

A = Fraud free 

B = Minor fraud found 

C = Major fraud found 

The work flow process of fraud deterrence system is 

shown in Figure 3. 

The company should conduct attitude and behavior 

survey from all staff in the organization and input the 

collected information into the fraud deterrence system. The 

system will assess the risk potential by mapping the 

individual employee information with the fraud risk 

behaviors and measure the fraud potential based on the risk 

measurable set up in the system. The next step is the validation 

of the evaluation process. For those who are validated by 

the system, the validation report will be prepared. Those 

who are not validated by the system, reasons for not 

validating will be reported. The forensic accountant has to 

investigate those who are not validated by the fraud 

deterrence system and issue on investigation report. 


In phase 6, the validation will be conducted to 

assess the efficiency, the practicality and reliability of the 

program and identify areas for further improvement. 

FRAUD DETERRENCE MODEL 

Identification of the risk factors causing fraudulent 

activities in the organization in Thailand was carried out 

using a quantitative research which represented the attitude 

of the participants in the survey. However, it cannot be 

concluded that a person displaying such characteristics will 

commit fraud. Hence, the association rule is more 

appropriate to be used to find out the important rules for 

fraud potential to occur in association with each fraud risk 

factor [19] [20] [28] [30] [32]. 

POTENTIAL FRAUD RISK BEHAVIORS 

Apriori algorithm in association rule is selected to 

find out the potential fraud rules. The samples of 14 strong 

rules to be used in fraud deterrence model are shown in 

Table 3. 

Risk factor 

Fraud risk behaviors 

Table 3: 14 best rules for fraud deterrence model 

Probability to 

occur fraud 

Wheeler-dealer attitude Living beyond means and financial difficulties 0.98 

Living beyond means, financial difficulties and past legal problems 0.98 

Living beyond means and past legal problems 0.96 

Past legal problems and refusal to take vacations 0.88 

Financial difficulties and refusal to take vacations 0.87 

Financial difficulties Living beyond means, wheeler-dealer attitude and past legal problems 0.96 

Borrow money from coworkers, wheeler-dealer attitude and past legal problems 0.96 

Borrow money from coworkers and wheeler-dealer attitude 0.94 

Living beyond means and past legal problems 0.94 

Borrow money from coworkers and past legal problems 0.92 

Wheeler-dealer attitude and past legal problems 0.92 

Past legal problems and refusal to take vacations 0.90 

Living beyond means and wheeler-dealer attitude 0.89 

Living beyond means Financial difficulties, wheeler-dealer attitude and past legal problems 0.86 

From table 3, it seems that “wheeler-dealer attitude”, 

“financial difficulties” and “living beyond means” are the 

three key risk factors for a person to potentially commit 

fraud. However, most people do not want to be a fraudster 

unless they are in a difficult situation where they are under a 

lot of pressure and there seems to be no solution for them. 

For a person to commit fraud, there are usually more than 

one risk factor involved. For example, an individual who 

overspends more than he could earn may not commit a 

fraud. An individual who overspends and has financial 

difficulty has 98% chances to commit fraud. Nonetheless, 

fraud can be committed if there is an opportunity and 

rationalization. 

SUMMARY OF FRAUD DETERRENCE SYSTEM 

This model will be used to develop a fraud 

deterrence system - a tool to predict a potential fraud in the 

organization. However, it is not easy for staff in the 

company to fill in the form and admit that they are prone to 

commit fraud in the organization. 

Therefore, forensic accountant is needed to conduct 

a further investigation on staff who are indicated by the 

system that they may potentially commit fraud i.e. staff who 

responded that they have 0% or less than 10% of fraud risk 

behaviors. 

Forensic accountant will use the personal financial 

information filled in by staff to check against those 

questions in the attitude and behavior form. A forensic 

accountant will also check the financial information of that 

staff with National Credit Bureau Co.,Ltd. to ensure the 

accuracy and reliability of the information especially if the 

staff is at the management level to prevent the white collar 

crime cases. If needed, forensic accountant may check staff 

records via Office of the National Anti-Corruption Commission 

and/or Crime Suppression Division, Royal Thai Police. 

Human Resources Department should check the 

records of the staff with their former companies by sampling 

two to three sources to ensure that the persons do not have 

bad records regarding legal or performance issues with the 

previous employers and forward them to the forensic 

accountant to be used as supporting evidences. 

The purpose of the fraud deterrence system is to 

alert or provide an early warning to the owner of the 

businesses to be aware of the potential fraud. It is a tool to 

indicate potential frauds in the organization, but it cannot 

confirm that an individual will be a fraudster. Further 

investigation should be done by forensic accountant as 

mentioned to validate the case. If a fraudster has a motivation 

to commit fraud, without an opportunity, fraud cannot be 

committed. Therefore, risk management should also be 

developed and implemented in the firm to deter the fraud 

activities apart from the fraud deterrence system. 

CONCLUSION 

The risk factors causing fraudulent activities in the 

organization in Thailand are identified from the qualitative 

and quantitative researches. The association rule is used to 

capture the fraud risk behaviors of each risk factor. The 

significant rules which state the high probability to occur 

fraud activities are selected to be used as fraud deterrence 

model. 

The fraud deterrence system will be developed and 

implemented using the fraud deterrence model as criteria to 

measure potential frauds in the organization. The forensic 

accountant will further investigate to ensure the correctness 

of potential frauds. 

Fraud deterrence system using forensic accounting 

and data mining techniques will be a tool to assist the owner 

of businesses to prevent the fraudulent activities by identifying 

the potential frauds in the organization in a timely manner. 

It will also be an instrument to minimize the loss from 

fraudulent activities and improve the savings. 

LIMITATION OF RESEARCH 

This research does not cover specific business risk 

for each type of business. Samples of fraud risk factors 

research were selected from Bangkok only. It might be better 


to use the samples from different demographics to identify 

fraud risk factors. 

ACKNOWLEDGEMENT 

The research of “Innovation of Fraud Deterrence 

System in the Organization using Forensic Accounting and 

Data Mining Techniques” receives a scholarship from “THE 

90 th ANNIVERSARY OF CHULALONGKORN UNIVERSITY 

FUND (Ratchadaphiseksomphot Endowment Fund)”. 

REFERENCES 

[1] Association of Certified Fraud Examiners, (1996), 

Report to the Nation on occupational fraud & abuse. 











[7] Cendrowski, H., Martin, J. P. and Petro, L. W., 

(2007), The handbook of fraud deterrence, John 

Wiley & Sons, Inc. 

[8] Chairatana, P., (2009), Introduction to innovation 

management. Presentation of Innovation Synthesis 1, 

Technopreneurship and Innovation Management 

program, Chulalongkorn University. 

[9] Coenen, T. L., (2008), Essentials of corporate fraud, 

John Wiley & Sons, Inc. 

[10] Criminal Code of Thailand, B.E. 2499 (1956) as 

amended until the Criminal Code (No.17), B.E. 2547 

(2003) 

[11] Digabriele, J. A., (2008), “An empirical investigation 

of the relevant skills of forensic accountants,” Journal 

of Education for Business. 

[12] Hopwood, W. S., Leiner, J. J. and Young, G. R., 

(2009), Forensic accounting, International edition, 

McGraw-Hill. 

[13] International Standard, (2009), Risk management – 

principles and guidelines – ISO 31000. 

[14] Jans, M., Lybaert, N. and Vanhoof, K., (2009), “A 

framework for internal fraud risk reduction at IT 

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The chartered Accountant. 

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M., (2009), “Association rules applied to credit card 

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1. Risk factors research 

Reduce fraud risk factors and fraud triangles 

Risk Factors 

• Living beyond means 

• Financial difficulties 

• Control issues, unwillingness to share duties 

• Unusually close association with vendor/customer 

• Wheeler-dealer attitude 

• Divorce/family problems 

• Irritability, suspiciousness, or defensiveness 

• Addiction problems 

• Refusal to take vacations 

• Past employment-related problems 

• Complained about inadequate pay 

• Excessive pressure from within organization 

• Past legal problems 

• Instability in life circumstances 

• Excessive family/peer pressure for success 

• Complained about lack of authority 

Add 

Fraud Triangle 

• Pressure 

• Opportunity 

• Rationalization 

Fraud Committed 

• Asset Misappropriations 

• Corruption 

• Fraudulent Statement 

If it cannot reduce 

risk factors and 

fraud triangles 

Corporate 

Governance 

Risk factors 

finding from 

research 

2. Financial information 

and attitude & behavior 

surveys 

Important rules for 

fraud potential for 

each risk factor 

(data mining) 

3. System development 

Develop fraud 

deterrence model 

Develop fraud 

deterrence system 

Figure 2: Conceptual framework for fraud deterrence system in the organization 

Investigation report 

Investigation (Forensic 

accountant) 

Reasons for not 

validating 

Start 

Collect attitude and 

behavior survey and 

records 

Risk assessment process 

Evaluation validation 

process 

Validate 

Validation report 

Figure 3: Work flow process for fraud deterrence system 


"A Study on Logistics & Supply Chain Management 

of Devi Seafoods Ltd" at 

Singarayakonda in Prakasam district 

V. Sreenivasa Rao 

1. SINGIFICANCE OF THE STUDY 

Globalization helps to do business any where in the 

world. In the globalized economy shipping of Products / 

Materials from one place to another place is a complex task. 

It is because; purchase of raw-material takes place at one 

point, processed at another point, market in different places 

in the world by using various transportation modes. In this 

situation, companies have to present best quality products at 

a reasonable price as and when required, avoiding risk. 

Logistics and Supply Chain Management (LSCM) 

place the right item in the right quantity at the right time at 

the right place for the right price in the right condition to the 

right customer and it has the ability to ensure a consistency 

in the quality, cost-saving potential and making available 

goods at the place of requirement in time. So, there is a need 

to focus on the LSCM and to study the performance of 

LSCM. In business, it may have internal focus, or external 

focus covering the flow and storage of materials from point 

of origin to point of consumption. 

The study on LSCM is significant because of the 

following: 

1. The total time for material to travels through the 

entire supply chain can be quite long 

2. The goal of supply chain to reduce uncertainty and 

risk 

3. The main goal of supply chain provide products right 

stuff to the right place at the right time 

4. SCM builds a chain of suppliers that focus 

minimizing waste and maximizing value 

5. The design, planning and operations of a supply chain 

have a strong impact on overall profitability 

2. OBJECTIVES OF THE STUDY 

a. To present brief description of origin and growth of 

Seafood Industry 

b. To examine the theory of Logistics and Supply Chain 

Management 

c. To study the process of Logistics and Supply Chain 

Management in Devi Sea Foods 

d. To examine the performance of the LSCM in Devi 

Sea Foods 

e. To find out the internal and external factors influence 

to Logistics and Supply Chain System of Devi Sea 

Foods 

f. To identify the gaps and reduce supply chain costs to 

the maximum possible level 

3. DATA BASE 

The study is based on both Secondary and Primary 

sources of data. Secondary data is collected from books, 

reports and records, research articles, journals and 

periodicals and from the Internet. Primary data is collected 

from the managers and supervisors with the help of a 

structured schedule. 

Censes method of investigation is adopted in the 

collection of primary data. 

Table-1: Shows the Details of Managers and Supervisors in 

Devi Seafoods Ltd. 

S. Employees Designation Department 

No Name 

1 M.Chowdary Manager Maintenence 

2 M.Lanin Manager Production 

3 G.V.Krishna 

Rao 

Supervisor Pre- 

Processing 

4 K.Brammaiah 

5 T.Subba Reddy 

6 A.Ramesh 

7 P.Rama Rao 

8 R.S.Reddy 

9 K.A.Paual 

10 U.Satyanaraya 

11 D.Vasu 

12 P.Subba Reddy 

13 G.Satya Supervisor Individual 

Quisk Frezion 

(I Q F) 

14 D.Narayana Rao 

15 K.Sreenu 

16 D.Malli 

17 CH.Chinni 

Krishna 

18 A.Arjun Supervisor Cold Storage 

19 P.Dinesh Kmar 

20 T. Malyadri 

4. PERIOD OF THE STUDY 

The period of the research study is one academic year 

i.e., 2010-2011. Data is collected from supervisors of the 

organization in the month of May, 2011 relating to Logistics 

and Supply Chain System of Devi Sea Foods Ltd. 

5. TOOLS OF ANALYSIS 

The collected data is analysed with the help of 

statistical tools. Percentages, Tables, Diagrams are 

employed at appropriate places. 

6. CONCEPTS USED 

Logistics It is concerned with getting products and services 

where they are needed when they are desired. It involves the 

integration, transportation, inventory, warehouse, material, 

and packaging. 


Supply chain management is an integrated management 

function which combines various activities involved in 

production & operation distribution marketing and services 

after sales with a customer focus so as to optimize the total 

cost. It refers to a managerial process, which combine all 

supply chain participants to design, develop and operate 

system which responds to customer expectation by making 

available right quality & right quality products at the right 

time and place in the right physical form all right cost 

Activities involved in global supply chain management 

1. Purchasing 

2. Manufacturing 

3. Logistics 

4. Distribution 

5. Transportation 

6. Marketing 

Supply Chain Drivers determines the performance supply 

chain by design, planning and operation of the supply chain. 

Drivers of Supply Chain Performance: Facilities, 

Inventory, Transportation, Information, Sourcing, and 

Pricing 

Models to measure supply chain performance 

a. SCOR (Supply Chain Operations Reference 

Model) 

b. Balanced Scorecard Method. 

a. SCOR model: This model refers to an attempt at 

standardizing processes for supply chain management. As 

per SCOR, supply chain performance fall under the 

following broad categories. 

Cost 

Assets 

Reliability 

Flexibility 

Supply chain council refers to measures related to costs and 

assets as internal-facing measures, while reliability and 

flexibility are termed as customer facing measures. 

b. Balanced Scorecard Method: The supply chain 

management performance framework can be directly linked 

to the balanced scorecard, resulting in a framework which 

could be called SCBSC (Supply Chain Balanced Score 

Card). 

The supply chain balanced score-cards: 

Provide clearer vision of the company’s strategy. 

Provide feedback around both internal system & 

 

external outcomes 

Continuously improve strategic performance and 

results. 

It covers four stages 

1. Finance: Financial area includes cost of 

manufacturing, warehousing, transportation etc. 

2. Customer: This includes order fill rate, back order 

levels, on-time delivery, etc. 

3. Operational: (Internal business process) 

4. Training: (or learning and growth). 

7. CHAPTER SCHEME 

The study is presented in Five Chapters. 

1. The First Chapter deals with the Significance of the 

study, Objectives of the study, Hypotheses tested, 

Data Base, Sample Design, Period of the study, Tools 

of Analysis, Limitations of the study, and Chapter 

Scheme. 

2. A Theoretical Framework relating to the topic of 

research in the second chapter. 

3. Industry Profile and Company origin, growth, 

performance, internal & external operations, future 

plans and opportunities are mentioned in the third 

chapter. 

4. An analysis of collected data with the use of 

Statistical tables, graphs, diagrams, percentages and 

Interpretation of the results exhibited in the fourth 

chapter. 

5. The last and fifth chapter presents the main findings 

and suggestions. 

One Questionnaire is used in the collection of primary 

data is also appended to the Appendix-I at the end of the 

report. 

A brief bibliography of articles, books, journals and 

reports are appended to the report of the study to indicate 

the nature of literature available on the subject of research at 

Appendix-II at the end of the report. 

8. LIMITATIONS OF THE STUDY 

The scope of the study is limited to Devi Sea Foods Ltd, 

Singarayakonda, Prakasam district plant. 

The findings and suggestions are relevant to small 

organization; 

9. PROFILE OF THE INDUSTRY & COMPANY 

The Global Scenario of India Seafood 

In the last 50 years, the fish eaters of the world have 

doubled. The seafood industry has changed beyond 

recognition. India's seafood’s industry is one of our biggest 

foreign exchange earners. Its turnover is around 9 billion 

dollars. There are around 400 processing plants in India and 

out of this 160 are processing India seafood for export to the 

US. 

From the 1960s, India started exporting processed items 

instead of dried ones. Developed countries started acquiring 

a taste for Indian marine products, which came to be known 

as India seafood’s. Earlier, India exported mainly to 

neighboring countries like Srilanka, Myanmar, Singapore 

etc. But as frozen and canned items became a prominent 

part of exports, affluent markets like USA, France, 

Australia, Canada and Japan became India's buyers. Modern 

machinery for freezing and canning were introduced at the 

processing plants. 

The main buyer for frozen shrimp was the US. But after 

1977, Japan became the principle buyer followed by the 

Western European countries, which had acquired a taste for 

India seafood. China imported fishes like the Ribbon fish, 

croaker etc 

Profile of the Devi Seafood Ltd (DSFL) 

Name of the Company : DEVI SEA FOODS LIMITED 

Year of establishment : 1996 

Head office : Devi sea food’s ltd., 

9-14-8/1, C. B. M. Compound 

Visakapatnam-3, 

Nature of the company : Limited company 

Factory location : The factory is located at town, 

Singarayakonda, Ongole, Prakasam District, Andra Pradesh, 


India, The factory is Situated 200k.m’s away the airport at 

CHENNAI. And 2k.m’s from Ongole railway stations. 

Processing Facilities : 2 Contact freezers 8.5 mt 

Each one have mechanical single belt 

Individually quick frozen (1QF) 

Impingement freezer 10, Tones capacity, 

Blast freezer capacity -5 tones. 

Flake ice plants capacity 10mt each. 

Block ice plants capacity-15 tones. 

Cold storages capacity 100 mt each. 

15 mts per hour water treatment plant. 

Product Range : Shrimps Fresh Water Prawns (SCAMP) 

Raw: Head on/ Head less/ PTO/ P&D/ PUD 

Butterfly, Marinated and flavored shrimp. 

These are exported to USA, Australia, Japan, Canada, 

European and other Asian countries. 

Business Activity 

: Processor & Exporter 

Organizational Hierarchy : At Visakapatnam. 

Managing Director 

: Mr. P. Bramhanandam 

Director Marketing 

: Mr. K. A. John 

No. of employees : above 600 

Internal Operation System 

Raw material purchase 

Raw material receiving, washing, and storing in chill 

room 

De-heading peeling and washing 

Grading and storing 

Block Processing freezing metal detection and packing 

10. DATA ANALYSIS AND INTERPRETATION 

The collected primary data is to be process and 

analysed in order to have desired result. In this section, the 

primary data processed in a view to reducing them to 

manageable proportions. The processing includes editing, 

coding classification and tabulation. The data analyse with 

an object checking and present the meaningful interpretation 

reveals the findings in the study. 

Procedure of analysis: 

i. Gather together all the information collected from 

the respondents 

ii. Than arranges the items of information into various 

groups in a preliminary way 

iii. To take account of the categories or grouping 

suggested by the respondents 

iv. The set of categories based on information will be 

formed 

v. Then collected information should be reviewed to 

assess with reference to objectives of the study. 

11. MAIN FINDINGS 

1. It is identified that, WMS, SCM, SRM, and CRM 

supporting systems are used in supporting LSCM 

2. It is identified that, purchasing, processing, inventory/ 

warehousing, distribution, and marketing activities 

are involved in LSCM 

3. They purchase raw materials only from formers 

4. It is identified that, they use Isolated Vehicles, Clean 

Plastic ice boxes, containers with -18 degree 

centigrade etc., are used as supporting material in 

LSCM 

5. The customers of Devi seafood’s are located in 

internationally. they place the orders through mails, 

telephone, fax and e-mail etc. the average monthly 

order received is 150 tones 

6. It is identified that, they use road and sea 

transportation in the shipment process 

7. It is found that, all the managers and supervisors in 

Devi seafood’s are satisfied about the performance of 

drivers (Internal and External factors) of LSCM 

8. It is found that, the opinion of all the respondents on 

performance of internal and external activities 

involved in LSCM is good 

9. Production and Maintenance Managers said that, their 

opinion on performance in all stages of LSCM is 

good and all the respondents said that the internal 

operation process of Devi seafood is good 

10. It is identified that, the opinion of all the respondents 

on cost of supply chain is reasonable. The purchasing 

and production manager said that the manufacturing 

cost and warehousing cost is high and the 

transportation cost is reasonable. 

11. From the primary data, the process of logistics and 

supply chain management is as follows 

Purchasing raw material from the suppliers (farmers) → 

shipping raw material through isolated vehicles by 

clean plastic ice boxes → testing raw material and 

unloaded in raw material receiving hall → Internal 

operation process (washing → de-heading peeling and 

wastage → grading and washing → freezing, metal 

detection and packing) → Inventory / ware housing 

(storage) → deliver to the customers. 

In simple 

Suppliers / Vendors → Processing Plant (Devi 

seafood’s) → Inventory/ warehousing → Marketing 

12. SUGGESTIONS 

It suggested that the organization take the following 

necessary steps to reduce the supply chain cost: 

a. Use Production Planning Control system to reduce 

the manufacturing cost 

b. Integrate all activities in production and operation 

process by using Information Technology to reduce 

the manufacturing cost 

c. Identify the measures to reduce the order 

processing time and take necessary steps to reduce 

the inventory / warehousing cost 

d. It is better to use third parties in the shipment 

process to reduce the transportation cost 

13. REFERENCES 

Articles 

a. LSCM Market Intelligence Report-Issue-1 to 7- 

www.lscm.hk from 5 th Sep 2008 to 16 th Dec 2009 

b. Hong Kong Logistics and Supply Chain Industry 

Survey- Report-10 th Oct 2008 

c. The Transparent Supply Chain, Harvard Business 

Review South Asia, October 2010 

Books 

a. Dnald. J. Bowersox, David J. Closs, Logistics 

Management: The Integrated Supply Chain 

Process, TATA McGraw-Hill 


. B. Raja Shekar, GVRK Acharyulu, Logistics and 

Supply Chain Management, Excel Books 

c. Sunil Chopra, Peter Meindl, D V Kalra, Logistics 

and Supply Chain Management, Pearson 

Websites 

www.wikipedia.com (LSCM) 

www.google.com 

www.lscm.hk 

www.alibaba.com 

www.knowledgestorm.com 

www.1000ventures.com 

www.hbrsasia.org 

www.managementhelp.org 


Consolidation of the National Building in a multiethnic 

society: The case of Mauritius 

Rajen Suntoo, University of Mauritius 

ABSTRACT 

Purpose – The purpose of this paper is to provide an insight 

on the consolidation of the nation building in multi-ethnic 

Mauritius. This paper aims at explaining the factors that lead 

to ethnic tensions and ethnic conflicts in multi-ethnic 

Mauritius and also discussing the importance of certain prerequisites 

like equal opportunity and good governance for 

the consolidation of nation building. 

Design/methodology/approach – In this paper, use of 

mainly secondary data and observation has been made for 

reflection, analysis and discussion. Research methods used 

include document analysis, internet search and observation, 

amongst others. 

Findings –The principal findings of this research indicate 

that the majority of the population is for the construction 

and consolidation of a Mauritian nation and most people 

have high expectation from state leaders to work efficiently 

and effectively for the sake of the motherland. It is generally 

believed that good governance on the part of all major 

societal stakeholders is a sine qua non for nation building 

and its consolidation. 

Research implications – This paper has much relevance in 

the fast developing Mauritian society as it may help the 

authority at reviewing its strategies regarding the 

management of the multi-ethnic society with the main 

purpose of consolidating its nation building. 

Originality/Value – The results of this study will be helpful 

to policy makers in multi-ethnic societies in Africa and 

other parts of the world to understand the importance of the 

inclusion of good governance and transparency in all the 

development process so that social justice prevails thereby 

consolidating nation building. 

Keywords: Multi-ethnic society, Ethnic tensions and 

conflict, Consolidation of nation building, Good 

governance, Equal opportunity. 

Introduction 

Mauritius is normally known as the rainbow nation. Tourists 

and visitors consider the island, set in its turquoise sea, as an 

oasis of peace and tranquillity in the Indian Ocean. Since its 

independence in 1968, the country has made enormous 

progress as far as economic development is concerned. 

Politicians have often called the population to join hands 

and work for the socio economic development of the 

country. During the last three decades, the average rate 

economic growth has varied between 4 to 5 percent on an 

average which is a clear cut example of the sacrifice made 

by the inhabitants for the sake of the country. 

However, the consolidation of the Mauritian Nation has not 

been completely realized. Several attempts have been made 

to construct the „mauritianess‟ but it did not fully succeed. 

Many people are of opinion that much attention and 

resources have been channeled to cause economic growth 

thus neglecting the social development. Some people still 

put their ethnic identities before their national ones and they 

consider themselves to be Hindus, Muslims or Christians 

first and then Mauritians. 

However, the high level of tolerance, mutual understanding 

and effective social interaction among the four main 

communities namely Hindus, Muslims, Christians and 

Chinese in the country give much hope that the country 

possesses all the necessary basic requirements that can be 

fully exploited in its attempt to build and sustain the 

Mauritian nation, where everyone would proudly claim the 

Mauritian identity. Therefore, the main stakeholders of the 

state should work in close collaboration for the promotion 

and construction of a true Mauritian society. High priority 

which has since recently been given to good governance in 

all areas of development should be consolidated and 

sustained. Transparency and social justice should become 

part and parcel in the development process so that no 

community feels being neglected and left outside the 

mainstream of development. 

The aim of this paper is to explain the factors that lead to 

ethnic tensions and conflicts in the multi-ethnic Mauritian 

society. The paper also discusses the importance of certain 

pre-requisites like equal opportunity and good governance 

for the consolidation of nation building. 

The first part of this paper provides a historical overview of 

the Mauritian society and the conceptualisation of nation 

building. Then, follows an explanation on ethnic tensions 

and ethnic conflict. This second part deals with the 

institutional and constitutional arrangements made for the 

sake of nation building. In this part, I will discuss the 

importance of certain necessary pre-requisites for 

consolidation of the nation building. Finally, a conclusion 

based on the paper will be stated. 

Methodology 

Methodology is the systematic and scientific way of 

producing and analyzing data so that theories can be tested, 

accepted or rejected (Haralambos & Holborn, 2000). In 


other words, it simply means a plan that describes how, 

when and where data are to be collected and analysed 

(Parahoo, 1997). For the purpose of this paper, use of 

secondary data and observation of functioning of the society 

have been made for the sake of reflection, analysis and 

discussion. Although the methodology used seems to have 

its limitations yet it helps tremendously to give a surface 

picture of the necessary ingredients that account for the 

consolidation of nation building in a multi-ethnic society. 

Further in-depth studies, using a combination of various 

methods, on the theme would no doubt lead to a better 

conclusion. 

Literature Review and Analysis 

Historical Overview of the Multi –ethnic Mauritian 

Society 

Mauritius is a multi-ethnic society. The four main 

communities in Mauritius, based on the 1972 census, are 

Hindus 52 %, General Population 30 %, Muslims 17% and 

Chinese 3 %. It is important to note that none of these 

groups has a homogeneous population. For instance, the 

Hindu community comprises various ethnic groups like 

Baboojee-Maraz, Vaish, Rajput, Ravived, Telegu, Tamil 

and Marathi, amongst others. 

The cultural rites and rituals, traditional norms, beliefs and 

values of the various groups differ depending on whether 

they are sanatanists, arya samadists or any other. In the 

Muslim Community, we find the Sunnites, Shiites and 

Ahmadists who are followers of the Islam religion. The 

General Population community consists of creoles (mainly 

the black and Coloured) and Franco Mauritians amongst 

others. The Chinese Community comprises the speakers of 

Cantonese and of Hakka (Eriksen, 1993). 

Successive governments, since independence, have 

regularly called the four main communities to work together 

for the purpose of economic development. However, some 

members of the different communities are of opinion that 

they have not reaped the benefits of development and that 

their standard of living and quality of lives have barely 

improved during the past decades. 

Although no one can deny the fact the Mauritius has made 

its way, slowly but surely, regarding economic progress and 

it is now considered as a middle income earning country, 

according to the OECD classification, yet some social 

problems like poverty and perceived social injustices 

particularly, in recruitment exercise and other resource 

allocation like patents and land distribution, remained to be 

addressed in transparent manner. In Mauritius, it is a fact 

that social problems very often take an ethnic dimension 

more than class dimension. The ethnic connotation attached 

to such problems is often exploited by representatives of 

ethnic, religious, socio-cultural groups, media and above by 

politicians, which has ultimately hindered and continues to 

hinder considerably any move towards the consolidation of 

a Mauritian nation. 

Nation Building and its consolidation 

The process of constructing, creating or structuring a 

national identity using the power of the state is often 

regarded as nation building (en.wikipedia.org/wiki/Nationbuilding). 

The state can embark on major socio-economic 

projects and involve the population with a view to foster 

social solidarity, cooperation and economic growth. The 

goal is to bring people from different groups together and 

develop a sense of belonging and patriotism. Much 

emphasis is laid by the state on common symbols and values 

shared by the population. In Mauritius, people attach much 

importance to symbols like the national anthem and the 

national flag. On independence day, the 12 th March, 

people forget their ethnic differences and celebrate the 

festival as true patriots. National flags are seen floating in 

front of all houses and commercial buildings. On such 

occasion, everyone claims to hold the Mauritian national 

identity. The national anthem is chanted by one and all. 

Unfortunately, such moment is temporary. Once the festival 

is over, some people return to their ethnic cocoons. 

Nation building also refers to the efforts made by the state to 

increase its capacities for self-rule and sustainable economic 

development (nni.arizona.edu/whoweare/whatisphp). It 

requires the setting up of democratic institutions at all levels 

of the society where everyone gets the opportunity to voice 

his or her opinion without fear and consequently, participate 

fully in building a just and fair society. Consolidation of 

nation building involves developing the nation's capacity to 

effectively make and take effective decisions and implement 

same rationally for the benefit of everyone. It involves a 

comprehensive effort to engage in good governance in all 

the sectors. Transparency and accountability on the part of 

all major stakeholders responsible to govern become a must 

to build a nation that works. 

Stephenson. C (2005) argues that to understand the concept 

of nation-building, one needs to have some definitions of 

what a nation is. According to her, early conceptions of 

nation defined it as a group or race of people who shared 

history, traditions, and culture, sometimes religion, and 

usually language. Dahal. R (2008) also claims that a nation 

is regarded as a community of people who share a common 

ethnic origin, culture, historical tradition and language. 

These definitions make one think of a nation just like an 

ethnic group or an ethnic nation, based on the social 

construction of race or ethnicity. On the other hand, Dahal 

also argues that a nation refers to a group of people united 

by a common interest and the ideology of nationalism, 

which is above ethnic, caste or class determination. Here the 

notion of nation lays emphasis on the merger of the people 

from different ethnic groups and communities of various 

cultures within the political community organised as a state. 

This concept of a nation is quite similar to what Stephenson 

argues when she considers a nation as a civic nation, based 

on common identity and loyalty to a set of political ideas 

and institutions, and the linkage of citizenship to nationality. 

She adds that the people of a nation generally share a 

common national identity, and part of nation-building is the 

building of that common identity. In this paper, whenever 

reference will be made to nation it will be according to these 

latter definitions of both authors. This is so because the idea 

of consolidating nation building in Mauritius has as a major 

aim the creation of a common platform with shared common 

values where people of different groups can be brought 

together to cooperate, collaborate and work for the socioeconomic 

development of the motherland and where 


everybody feels a sense of belonging to the nation. 

Consolidating nation building would therefore require a 

change in the mindset of people, certain reforms at 

institutional level and a review of the functioning of the 

state stakeholders like the private sector, the civil society 

and the political actors, placing good governance at the top 

of the agenda. 

Ethnic Tensions and conflicts in multi-ethnic Mauritius 

The population in any country is composed of various ethnic 

groups. Given the presence of different groups in a country, 

ethnic tensions and conflicts are bound to occur. Some 

societies are able to manage ethnic tensions effectively and 

succeed in preventing them from degenerating into ethnic 

conflicts and violence which often cause much harm to the 

socio-economic and political fabrics. The recent bloody 

ethnic and violence in Iraq, England and France clearly 

demonstrate the damage caused to the societies. 

In Mauritius, the 1968 riots, where large scale violence 

broke up between the Creole and Muslim communities in 

the capital city of Port- Louis, resulted into loss of many 

lives, hundreds of people wounded and thousands of houses 

and commercial buildings damaged. Following the riots, 

political and socio-religious leaders worked collaboratively 

with other civil society groups to take positive steps so as to 

bring people of different communities together to work and 

live peacefully. During the 1970s and 1980s, the Mauritian 

state successfully united members of the various 

communities and the ethnic concern nearly lost its 

importance in the public arena. The population was able to 

develop a sense of „mauritianess‟ and people were 

responding to the state as Mauritians. Everyone joined 

hands to work hard for the sake of socio-economic 

development and welfare of the country. 

The country started to take off in the midst 1980s and large 

amount of progress was achieved. Unfortunately, the state 

stakeholders, mainly the politicians and the capitalist 

entrepreneurs failed to distribute the benefits of the 

economic gains in a just and fair manner to the population. 

There was an unequal redistribution of wealth and income 

which led to a few becoming very rich and the majority of 

the population falling under the poverty trap. As early as 

1990s, people from the lower classes, and even those from 

the middle classes, were getting much difficulties to meet 

both ends. The authority was very slow at taking the right 

decisions to remedy the situation, which continued to 

deteriorate further. Hence, the social fabrics started 

weakening and the peace and harmony were threatened. On 

the international scene, ethnic conflict and violence in 

Russia and the Arabian countries were escalating. Such 

news portrayed by the media aggravated the situation in 

Mauritius. The ethnic concerns in the multi ethnic society 

started reappearing. There was an ethnic revivalism and the 

Mauritian nation, with its increasing pockets of poverty, was 

at stake. Issues such as „malaise Creole‟, which meant the 

vulnerability of the Creole population regarding poverty, 

came to the forefront. Although poor people were found in 

all ethnic communities, yet it was a fact that a relatively 

higher percentage of the members the Creole group were 

living in a more deplorable state. Poverty, which was at first 

regarded as a result of the class phenomenon, took an ethnic 

dimension in Mauritius. Unfortunately, the death of the 

famous Creole singer in February 1999, Kaya, acted as a 

detonator for the explosion of the large scale violence in the 

country. The ethnic riot of February 1999 paralysed the 

society for nearly two weeks. Much of the socio-economic 

progress made by the country was tremendously affected. 

The 2001 Country Report on Human Rights Practices 

estimated that the riot cost damages of nearly $50 million to 

the country. After the black episode of 1999, the ethnic 

concern has come to the forefront in Mauritius and now it is 

nearly impossible to ignore ethnicity in any development 

plans and programmes. Consequently, the consolidation of 

nation building has become even more complex as the 

management of the multi-ethnic society requires more than 

ever transparency, good governance and social justice in all 

areas. 

Institutional and Constitutional arrangements in 

Mauritius 

Multi-ethnic societies usually face much problems arising 

from ethnically and religiously diverse groups. Therefore, 

there is the need to develop strong and robust constitutional 

institutions which could help reducing and mitigating 

tensions and provide a permanent basis for solving most of 

the problems. Roeder P. G. 

(www.yale.edu/macmillan/ocvprogram/licep/2/roeder/roede 

r.pdf0 rightly claims that ethnic differences constitute one of 

the most important cleavages that states must accommodate. 

This is very true in multi- ethnic societies for there to be 

peace, harmony and nation building. Since mid 1960s, 

Mauritius has witnessed important institutional and 

constitutional arrangements like the Best Loser System. In 

one way or the other, such arrangements have largely 

contributed to national unity and nation building. 

Institutional arrangements in Mauritius usually guarantee 

the rights, freedom and identities of the population and help 

to create the environment for unity and peaceful living. 

Soon after the 1999 riots, the revivalism of ethnicity has 

made ethnicity so visible that no government can ignore the 

phenomenon while making decisions. The country has 

noticed the emergence of quite a number of institutional 

provisions since 2000, given the high visibility of the ethnic 

concerns of the diverse groups on the forefront. 

Best Loser System (BLS) 

The BLS is a unique system, found only in Mauritius, 

guaranteeing the representativeness of the minority groups 

in Parliament. During the mid 1960s, when the country was 

about to become independent, the fathers of our Constitution 

designed the best loser system with a view to enable each 

ethnic group to be fairly represented in the National 

Assembly. In a multi ethnic society as ours, it is of utmost 

importance that each community feels secure and safe by 

having someone, from their groups, represented in the 

supreme decision making institution. The best loser system 

allows eight candidates, who failed to get elected, to join the 

National Assembly, based partially on their ethnic identity. 

Mathur (1991) claims that the best loser system promotes 


and encourages communalism which is detrimental to nation 

building. However, the World Bank Report (1997) gives a 

different view by arguing that the best loser system, by 

ensuring representation of each ethnic group in parliament, 

has contributed to the social cohesion in Mauritius. The 

latter argument makes much sense in the Mauritian context, 

as the minority groups feel safe and secure given that they 

have the assurance that there will be members of their 

community in Parliament. 

Actually in the country, the government is having contacts 

with different stakeholders to go for electoral reforms. Since 

the beginning of the new millennium, there has been two 

major reports on electoral systems, one known as the Sachs 

Report and the recent one named Professor Carcassonne 

Report. Both reports recommend, in one way or the other, 

the abolition of the Best Loser System and the introduction 

of some forms of proportional representation system. Given 

the weak and fragile multi-ethnic Mauritius, the state should 

think seriously before embarking on an electoral system 

without the best loser system. Many people, mostly the 

minority groups comprising the Muslims, Christians and 

Chinese population, still believe that the BLS guarantees 

representation all the ethnic groups in Parliament. The BLS 

acts as a factor for social cohesion and the population feels 

that it should be maintained at all cost till an effective 

alternative that can ensure the representativeness of all 

ethnic groups in Parliament is found. The BLS, as a 

constitutional provision, acts positively on the psyche of the 

minorities who feel secure and therefore should be 

maintained. Any government has to bear in mind the 

possible consequences that may result with the elimination 

of the BLS on the fragile social fabrics of the Mauritian 

society. 

Cultural Centres and Speaking Unions 

Since 2000, successive government have come up with 

certain institutions that are thought to both foster unity 

among the population and also benefiting the different 

ethnic groups. Several cultural centres have been 

constructed in Mauritius in order to preserve the cultural 

values of the different ethnic groups. For instance, there are 

the African Cultural centres – basically for the Creole 

community, the Islamic Cultural Centre – basically for the 

Muslim community, the Tamil Cultural Centre, Telegu 

Cultural Centre, Marathi Cultural Centre for the Hindu 

population and the Chinese Cultural Centre – for the 

Chinese population. In addition to these cultural centres, the 

country also has the Mauritian Cultural Centre created in 

2001 which has as its main aim the promotion of the 

Mauritian culture. On the other hand, to preserve the 

languages of the different ethnic groups, the Government 

has created Speaking Unions. For instance, we have recently 

witnessed the coming up of the Creole and Bhojpuri 

Speaking Unions in addition to the already existing 

Speaking Unions for Urdu, Tamil, Telegu, Marathi and 

Mandarin, amongst others. In multi ethnic Mauritius, the 

maintenance of the diverse cultural values and the 

preservation of the different cultural languages help to 

maintain the sense of belonging and social cohesion among 

the members of the various groups. 

Although some people view that creation of different 

speaking unions lead to more division yet the reality in 

Mauritius is different. Given that the majority of Mauritians 

are by nature a tolerant population and they practice cultural 

relativism, the existence of different cultural centres and 

various speaking unions enriches the cultural values of the 

population. The people are socialized in different cultures 

and traditions and this might explain the success of 

Mauritians who leave the country to work abroad. They 

adapt easily to different societal values, norms and 

traditions. Besides, the exposure to different cultural values 

in Mauritius can also, in a very subtle manner, explain the 

hospitable nature of Mauritians vis a vis the tourists which 

has resulted into a successful and stable tourism industry 

generating large amount of foreign revenues. 

2008 Equal Opportunity Act and the consolidation of 

Nation Building 

This Act has been welcomed positively by each and 

everyone in the country. During the presentation of the 

Equal Opportunity Bill in the National Assembly, the 

Honourable Prime Minister, Dr Navin Ramgoolam, showed 

his commitment to level the playing ground for all 

Mauritians regarding equal opportunities in all areas of life, 

whether it concerns recruitment for a job or promotion in 

any sector, access to education or a service, and social 

justice and human rights, amongst many others. The 

government of the day has been praised for their willingness 

to build a just and fair society where all the citizens will 

have equal rights and opportunities to succeed and prosper. 

However, the application and implementation of the act has 

been retarded, mainly because of the administrative 

complexities to put the law into practice. Recently, more 

precisely in November 2011, certain amendments were 

brought to the Equal Opportunity Act so as to facilitate its 

implementation. Although the government is taking much 

time, regarding its implementation, yet it should be given 

the credit to have brought such an important tool, which will 

help consolidating social justice in the multi ethnic 

Mauritian society thereby leading to the consolidation of 

nation building as all people will have the same opportunity 

to progress and develop. However, the challenge to succeed 

in life does not depend totally on the provisions of the Act 

but also and primordially on the efforts put in by the people 

themselves. The Act will, in fact, be a facilitator creating 

same and equal chance for each and every Mauritian. To put 

the Equal Opportunity Act into practice it is believed that 

there should be the right person in the right place to make 

and take decisions for the benefit of all Mauritians. There is 

the need for effective leaders at all levels of the state to 

manage the society. 

Good governance for the sake of a just and fair society 

Good governance has much to do with the competent 

management of a country‟s resources and affairs in a 

manner that is open, transparent, accountable equitable and 

responsive to people‟s needs 

(www.ausaid.gov.au/publications/pdf/goodgovernance.pdf). 

It normally assures that corruption and mal practices are 

minimized and the views and voices of both the minorities 


and the vulnerable population of the society are heard and 

taken into account in decision making. 

(www.unescap.org/huset/gg/governance.htm). Good 

governance is part and parcel in achieving success in 

management of a society which results into socio-economic 

and political stability and development. Since independence 

in 1968, all governments have, as far as possible, taken good 

decisions and implemented same for the best interest of the 

population. This explains the Mo Ibrahim Index ranking of 

Mauritius on the top position in Africa, regarding good 

governance, for the last three years. However, the 

classification of Mauritius on the top of the list does not 

necessarily mean that the country is immune from 

corruption and mal practices. Everyone in the country 

knows pretty well, and it is a fact, that corruption, nepotism 

and mal practices in government, private sector and civil 

society exist in the society. Both the Prime Minister and the 

Leader of the Opposition have shown much determination 

and commitment to fight against corruption and other ills of 

the society. Nevertheless, it seems that they do not always 

get the support of all members of Parliament and the private 

stakeholders. Bringing new laws to punish people found 

guilty of malpractices are not always the best measures to 

fight corruption. According to a big majority of the 

Mauritian population, the country needs a change in the 

political culture. Many are of the view that the financing of 

the political parties should be more transparent and there 

needs to be accountability. Politicians need to understand 

that they cannot function beyond the law. The common 

people cannot be expected to follow rules and regulations 

correctly when the prevailing perception about politicians, 

both for government and opposition parties, is negative. 

Since the last few months, the social media is denouncing 

much of nepotism cases and ill practices in the society and 

that is high time for scrupulous politicians and government 

officials found guilty to be brought to task. Government 

cannot continue ignoring such important information as the 

result might impact negatively on the social cohesion and 

consolidation of nation building. There is a general feeling 

among the population that those in power should manage 

the society for the benefit of all people. With the global 

financial, economic and social crisis, Mauritius will not be 

spared permanently. Therefore, for the sake of the nation, all 

state stakeholders need to put people first and work for them 

as responsible patriots. Besides, it is a known fact that a few 

private companies and non governmental bodies operate 

with hidden agendas, thereby exploiting the society‟s scare 

resources. The state should take bold decisions to remedy 

the situation before it is too late. All state stakeholders need 

to understand that the 21 st century is high tech led and that 

information cannot be hidden for long. 

Search for Mauritian Identity and consolidation of 

nation building 

Ethnocentrism is viewing the culture of others through one‟s 

own cultural lenses while cultural relativism means viewing 

the culture of others through the cultural lenses of the other ( 

Macionis, 2002). For there to be development and social 

stability, multi-ethnic societies put a lot of emphasis on 

cultural relativism to make social life possible. Mauritius is 

generally known as the paradise of the Indian Ocean as it is 

considered to be one of the most tolerant societies in Africa. 

Mauritius has four main communities namely Hindu, 

Muslim, Christian and Chinese. None of them has a 

homogeneous population. For instance, Hindu community is 

divided into several ethnic groups like Marathis, Telegus, 

Tamils, Vaish, Rajput, amongst others. The level of social 

interaction and mutual understanding among the different 

group members is very high. Foreigners and tourists are 

often surprise to find the peaceful living of the different 

ethnic groups in the society. The fact is that Mauritians, 

whatever be their ethnic origin or cultural differences, are 

socialized since birth to live together with others. The 

primary socialization is so strong that people of different 

communities get along very well in all areas of life. 

Although the majority of the people are always proud to put 

their ethnic identities before the national ones, this does not 

mean they blindly follow their ethnic groups and help only 

their community members. When there is a road accident or 

any natural calamity, Mauritians do not look at ethnicity but 

they behave and act as good human beings, helping those in 

distress. The wearing of Jeans, eating „dhollpuri‟, singing 

and dancing „sega‟ or celebrating Christmas is not reserved 

for members of one community. Mauritians are different 

and it is not only the holding of a Mauritian identity that will 

make them act as true patriots. Patriotism is inbuilt in the 

people. 

Mauritians are by nature a tolerant, respectful and hospitable 

population. However, a few scrupulous and malignant 

intellectuals, politicians and religious heads create the 

division among the various ethnic groups for their vested 

interest. It has been noticed that during the approach of 

elections, most people are reminded of their ethnicities by 

politicians. The latter like the „divide and rule‟ policy. 

Anyway, politicians are not the only ones to benefit from 

ethnicity but a few intellectuals and religious heads do also 

take advantage. Whenever, corrupt intellectuals or religious 

people are in difficulty, they look for support from their 

ethnic groups. The culprits are portrayed as victims. With 

modernization and development, the common people are 

aware of the dirty games played by politicians, intellectuals 

and religious heads. The latter need to learn quickly from 

the recent Arab uprising. With the new generation of youth, 

things have started to change and if the trend continues, the 

old dirty games of scrupulous people will not have their 

place in Mauritius. The young people behave and act 

differently and most of them want to live in a just and fair 

society and with a Mauritian identity. 

Concluding Remarks 

Since the past decades, the state has been confronted with 

the enormous and delicate task of consolidating nation 

building in Mauritius. Although some progress has been 

noticed, as people of different ethnic groups live and work 

peacefully side by side, yet tensions may crop up resulting 

into conflict and violence, if not managed properly by the 

society. This makes us all realise that we are constantly 

walking on an „ethnic volcanic bomb‟ which may erupt at 

any time, thereby, affecting tremendously all the socioeconomic 

development made, as have been the cases in 

1968 and 1999 riots. 


From this paper, it has been found that the Mauritian state 

has always laid much emphasis on nation building, which 

has been its main priority. We can see that the country has 

all the necessary ingredients to consolidate and sustain its 

nation building. The high level of tolerance, mutual 

understanding and cultural relativity on the part of each and 

every community are the basis on which the state can realise 

its vision of a harmonious, stable and an all inclusive 

Mauritian nation where good governance, transparency and 

social justice prevail. Scrupulous Politicians, malignant 

intellectuals and auto proclaimed religious leaders who 

practice what McKay has referred to as „Manipulative 

ethnicity‟ (Haralambos & Holborn, 2000) to form groups 

and create social problems for nation building should be 

brought to task. Therefore, there is an urgent need to 

consolidate good governance at all levels with a view of 

building a just and fair Mauritian nation where everybody 

feels included. 

References 

(1) B. Benedict, Mauritius: The Problems of a Plural 

society. Pall Mall Press, London, 1965. 

(2) T. H. Eriksen, Communicating Cultural Difference 

and Identity: Ethnicity and Nationalism in 

Mauritius. Department of Social Anthropology, 

Norway, 1990. 

(3) T.H. Eriksen, 1993. The Epistemological status of 

the concept of Ethnicity. Available: 

http://Folk.Uio.no/geithe/satus.of .ethniciy.html 

(4) T.H. Eriksen, Ethnicity and Nationalism. Pluto 

Press, London, 1993. 

(5) M. Haralambos and M. Holborn, Sociology: 

Themes and Perspectives, 5 th edn. HarperCollins, 

London, 2000. 

(6) J. J. Macionis, Society The Basics, 6 th edn. Prentice 

Hall, New Jersey, 2002. 

(7) H. Mathur, Parliament in Mauritius. Ocean Indien, 

Rose Hill, 1991. 

(8) K. Parahoo, Nursing Research Principles, Process 

and Issues. Macmillan Press Ltd, London, 1997 

(9) P. Ralph, The Enigma of Ethnicity: An analysis of 

Race in the Caribbean and the world. School of 

continuing studies, Trinidad, 1993. 

(10) R. Suntoo, “Managing Multi-Ethnic Mauritius”, 

paper presented at South African Sociological 

Association Conference, University of 

Witswatersrand, 2009. 

(11) Report of the commission on the future of Multi 

Ethnic Britain, 2000. Published Profile Books, 

U.K. Available: http://www.runnymedetrust.org/ 

(12) P. G. Roeder, The Robustness of institutions in 

Ethnically Plural Society. Available: http:// 

www.yale.edu/macmillan/ocvprogram/licep/2/roed 

er/roeder.pdf. 

(13) Government Gazette of Mauritius, 1999. Act of 

Parliament 1999, African Cultural centre 

(Amendment Act 1999), Government Printing, 

Mauritius. 

(14) Government Gazette of Mauritius, 2000. Act No 

37, The Islamic Cultural Centre Trust Fund 

(Amendment) Act 2000, Government Printing, 

Mauritius. 

(15) Government Gazette of Mauritius, 2001. Act No 3, 

Mauritius Marathi Cultural Centre, Act No 4, 

Mauritius Telegu Cultural Centre, Act No 5, 

Mauritius Tamil Cultural Centre, Act No 6, 

Mauritian Cultural Centre, Government Printing, 

Mauritius. 

(16) C. Stephenson, 2005. Nation Building - Beyond 

Intractability - More Constructive. Available: 

http://www.beyondintractability.org/essay/nation_b 

uilding. 

(17) Good Governance. Available: 

http://www.ausaid.gov.au/publications/pdf/good_g 

overnance.pdf. 

(18) Telegraph Nepal : Role of Nepalese Youth in 

Nation-Building. Available: http:// 

www.telegraphnepal.com/news_det.php?news_id= 

4006. 

(19) What is good governance? Available: 

http://www.unescap.org/huset/gg/governance.htm. 

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State, and Nation. Available: http:// 

www.geography.about.com/cs/politicalgeog/a/state 

nation.htm 

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Available: 

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Internalizing International Human Rights on Prisoners 

in India – A Juristic perspective 

Rajasekaran Srinivasan, Assitant Professor, P.G.Department of Constitutional Law & Human Rights, 

Tamil Nadu Dr.Ambedkar Law University, Chennai-600 028, Tamil Nadu, India 

Abstract 

Life, Liberty, Equality and Dignity are the basic tenets of 

human rights. It evolved at the global level and is 

internalized by the Legislature and harmonized by the 

judiciary at the domestic level. India suffered under the 

imperialistic yoke for centuries. All the existing Criminal 

laws are based on British legal system. Hence it declared 

human rights as its cardinal principle to the protected at all 

costs. Being the largest democracy with a heterogeneous 

population makes this aspect even more important and 

difficult. Therefore corresponding to the developments of 

human rights at the global level, India periodically attempts 

to internalize such laws into the domestic system either by 

amending the Constitution or through legislative enactments. 

In spite of that, there is persisting gap between the evolving 

global laws and the existing laws relating to prisoners rights. 

Global human rights are far ahead of national human rights. 

In this context, this research attempts to analyze the role of 

the Supreme Court in assimilating internalizing and 

harmonizing the global laws in order to minimize the gap. In 

this research work certain questions crop up, which are 

sought to be answered. 

************ 

“There is no iron curtain between a prisoner and the 

fundamental rights” said Hon‟ble Justice V.R. Krishna Iyer 

in Sunil Batra case. The profundity of this simple statement 

is enormous. Prisoners‟ rights are very sensitive one, mostly 

neglected or brushed aside. By birth no man is a criminal, 

circumstances mould some as criminals. The saying is 

embodies in all religious principles. Gandhi, the Mahatma 

following that great religious precedent said, “Hate the sin, 

but not the sinner”. It is accepted by the Indian legal system 

with a true sense of „heart and soul‟ and is the cardinal 

principle of criminal justice system in India. 

Prisoners as „persons‟ are entitled to all those rights 

available to „persons‟. The treatment meted out to prisoners 

differs from country to country. But in no country they are 

accorded all human rights. Commenting on that general 

unhealthy trend, Hon‟ble Justice V.R. Krishna Iyer observed 

“Barbarity in sentence and torture in prison are a trend, 

which aggravates the malady and is so self-defeating that 

punitive cruelty is a curative futility.” 

Freedom fighters, put behind bars are also treated as 

prisoners. After the country attains independence, they 

become heroes and leaders of the new nations. The 

autocratic regime on India for more than two centuries saw 

many a freedom fighter behind the bars, leaving the prisons 

a crowded place in British India. India has inherited most of 

the laws relating to prisoners from the British, whose aim 

was to facilitate effective control over colonial India. After 

independence, these laws especially its structure continued, 

but modifications were made to other aspects. It is relevant 

to understand the rights available to all sorts of prisoners, 

convicted for political causes or for various other offences 

committed by them, against the State as well as individuals. 

The laws relating to prisoners in India have been influenced 

by international instruments on one side and on the other the 

practice of treating prisoners which is the residue of British 

imperialism which also introduced the police and prison 

system. These systems are responsible for the continuance 

of inhuman treatment of the prisoners. In this paper an 

attempt is made to probe the following research problems 

what is the role of the Supreme Court of India in enforcing 

prisoner‟s right and critically analyze the harmonization 

process in various phases and its various dimensions 

Research Methodology 

It is an ex-post facto research. The cases decided by the 

Supreme Court from 1950 to 2010 related to human rights 

have been taken for analysis. The process of interpretation 

by the judiciary is analyzed. However, in this research work, 

the role of the Supreme Court in enforcing the international 

human rights law into domestic law has been explored, 

analyzed and formulated only through the cases already 

decided by the Supreme Court. This research work consists 

of various stages. 

Firstly, Supreme Court judgements in which one or more 

international human rights instruments mentioned are 

explored. Secondly, Such explored cases are arranged 

chronologically and classified into four groups, which 

constitute four phases namely from 1950 to 1966 i.e. from 

the commencement of the Indian Constitution to the year of 

the enactment of International Covenant on Civil and 

Political Rights, 1966 (ICCPR) and International Covenant 

on Economic, Social and Cultural Rights, 1966 (ICESCR) 

the Second phase from 1966 to 1979 i.e. after the enactment 

of ICCPR and ICESCR to the year of ratification of these 

two instruments by India, the third phase commenced from 

1979 i.e. after the ratification of the two covenants and 

before the enactment of Protection of Human Rights Act, 

1993, the fourth phase commences from the enactment of 

Protection of Human Rights, 1993 to 2011 is a period of 


confinement of the research. Thirdly, all the above cases are 

further classified into „Reference‟ and „Expansion‟. If the 

Supreme Court mentioned international human rights 

instruments in its judgements and used such instruments for 

the purpose of expanding domestic human rights in the light 

of international human rights, such cases are referred as 

„expansion‟ and other cases are mentioned as „reference‟. 

This research applies explorative, formulative, analytical 

and critical methods. The human rights cases decided by the 

Supreme Court have been explored. After exploration, the 

role played by the Supreme Court in harmonizing the 

international with the domestic law is formulated. The role 

of the Supreme Court is analyzed in the context of 

international human rights and a critical evaluation is made 

about the role of the Supreme Court in this regard. Trend 

analysis is used to critically analyze the role of the Supreme 

Court during various phase of harmonization. 

With the help of “AIR Info-tech” and 

software all these cases which have the concept “human 

rights” in the judgement decided by the Supreme Court from 

1950 to 2010 are enumerated first. There are --- cases found 

in the “AIR Info-tech” with the content of “human rights”. 

This study is confined only to the human rights cases 

decided by the Supreme Court of India which predominanty 

related to international human rights are as found in the 

international treaties and conventions. For the purpose of 

this analysis the Supreme Court cases have been selected 

irrespective of the judgement remaining as obiter dicta or 

ratio decidendi. 

From 1950-66 

In that phase, the Court did not referred or invoked directly 

any international human rights instruments connected with 

prisoners. 

From 1966-1979 

In this period, the positivist traditional approach of 

the Supreme Court turned to an activist approach. The 

changing political winds had an effect on the Supreme Court. 

The activism of the Supreme Court was slow and 

imperceptible and came to be noticed only towards the end 

of this phase when India was reeling under emergency. The 

Court slowly started perceiving the larger dimension of its 

Constitutional role in this period. In this phase, Court did 

not cross swords with the executive, but legitimized State 

intervention for regulating the economy and enacting social 

justice, barring a few cases on the prisoner‟s rights. 

Therefore, an attempt is made to explain and explore the 

dynamism of the plenary power of the Supreme Court in 

safeguarding the prisoner‟s rights in these cases. 

The significant development in this phase is 

ratification of the International Covenant on Civil and 

Political Rights, 1966 in 1979. Subsequently an Optional 

protocol was passed to constitute Human Rights Committee 

to receive and consider the individual claims of the victims 

in 1976. By the influence of the ICCPR, 1966, UN adopted 

a Declaration on Protection of All Persons from being 

subjected to Torture and other Cruel Inhuman or degrading 

treatment or punishment. But India had reservation in this 

convention. 

The Supreme Court observed in Nandini Satpathi 

case the Supreme Court of India interpreted Article 22(1) of 

the Constitution in consonance with Article 3(b) of the 

ICCPR, 1966 and extended the operation of this right of the 

accused person under circumstances of near custodial 

interrogation. In this case it was found that the judges of the 

Supreme Court attempted to infuse the human rights 

principles in the domestic jurisdiction to render complete 

justice thus bringing in harmonization. This phase witnessed 

an increasing consciousness about the desirability of prison 

reforms. 

In A.D. M. Jabalpur v. V.S.Shukla, , Khanna.J. 

dissenting note stated that “in case of conflict between 

international law and municipal law, the latter should prevail. 

But if two constructions of the municipal law were possible, 

the Court should construct its judgment in such a way as to 

bring harmony between the municipal law and international 

law or treaty.” The Supreme Court initially refers the 

Constitutional provisions in 1950‟s and 1960‟s. In the dawn 

of 1970‟s the judicial activism enable the Court to interrelate 

the Article 21 with other provisions of Fundamental Rights 

of the Constitution. Late 1970‟s and 1980‟s the Supreme 

Court assimilate the International human rights instruments 

in the domestic law. 

The Supreme Court expanded its scope for preserving and 

protecting the right to legal aid of the indigent persons in 

Hussainara Khatoon Case. It case was the starting edge of 

the application of International human rights instruments in 

the domestic jurisdiction. This case reveals that judicial 

activism in India stepped into an area of legislative vacuum 

in the field of human rights. The language of Article 21 was 

merged with Article 14(3)(d) of the ICCPR. In this case 

P.N.Bhagwathi, J. observed that “we are crying on our roof 

top that we are implementing human rights in the 

administration of justice, but it is a shame on our part that 

our bail system is connected with monetary loss.” The Court 

criticized the administration of criminal justice and bail 

provisions which interwoven with monetary aspects. The 

legal system‟s is belief that monetary loss would alone 

compel a person to appear before judicial procedure was 

also criticised. 

The right of prisoners to ask for observance of human 

rights has been recognized by the Supreme Court in Charles 

Shobraj v. Superintendent, Central Jail, Tihar. The fruits of 

Article 21 were made available to the prisoners while 

dealing with the question of their right of reading and 

writing books in jail. This view was reflected in subsequent 

Supreme Court judgements. In Ismail Iqbal Sodawala v. 

Union of India the Court observed that it is the duty of the 

Court to hand over a copy of judgment free of cost to the 

prisoner immediately after pronouncement of judgments. 

Otherwise it would amount to unfair trial. The same opinion 

was followed subsequently in M.H.Hoskot v. State of 

Maharashtra. In these cases the impact of the International 

instruments is largely felt and it influenced the minds of the 

Indian judiciary. The fag end of this phase was the darkest 


period in the political history of modern India. The 

emergency period, probably strengthened judicial activism. 

Hence harmonization of international law into domestic 

sphere was thus it started with A.D.M. Jabalpur case. 

From 1979-93 

The above trend was continued in this phase 

wherein the Supreme Court directly harmonizes several 

international human rights instruments in the domestic law. 

It was consistently guided by the UDHR and other 

international instruments in interpreting the provisions of the 

constitution and the laws. In this phase the Indian Judiciary 

is slow and steady and became active champion of Civil and 

Political Rights. It is evident from plethora of judgments 

decided by the Court with the aid of the international 

instruments. 

In this phase, „Custodial torture‟ is a nightmare for 

any prisoner. It means any act of inflicting excruciating pain 

especially as a punishment or coercion by an enforcing 

authority or any person or group of persons upon a criminal 

or suspect or arrestee for extracting information or to make a 

confession. When it is in an advanced degree, it is sadistic, 

inhuman, unreasonable, irrational, uncivil and beastlike or 

beastly, hence brutal. It is not merely physical, there may be 

mental torture calculated to create fright and submission to 

the demands or commands. When such threats are from a 

person in authority like police officer the mental torture 

caused by it is even more grave. 

In Sunil Batra Case (II) , a landmark case under Article 21, 

the International Conventions were referred and also 

invoked. This case arose from a habeas corpus writ petition, 

based on a letter sent by a prisoner to a judge of the 

Supreme Court complaining of brutal assault by the Head 

Warden on another fellow prisoner. Due to intense physical 

torture a prisoner developed a tear of the anus due to forced 

insertion of stick by some prison official. The prisoner‟s 

medical examination revealed the fact of his being tortured 

by warden. The Court was shocked to hear that not only the 

lower but the higher officials were meeting out such 

inhuman treatment.” In this case the Court in its decision 

referred to the Convention on the Protection of All Persons 

from being subject to Torture and Other Cruel, Inhuman or 

Degrading Treatment or Punishment, 1975. Guided by the 

International standards laid down by the Declaration, the 

Court issued detailed directions relating to the treatment of 

prisoners, prevention of torture in prisons and redressal of 

their grievance. The Court also directed the State to follow 

the United Nations Standard Minimum Rules for the 

Treatment of Prisoners without fail. All the directions and 

guidelines issued by the court reflect the spirit of the said 

Convention, thereby giving the Declarations a practical and 

positive meaning. This set the trend and with this decision 

the Court began to consider a prisoner as a human being and 

conferred dignity to the prisoner. 

In Francis Coralie Mulin, a petition was filed by a 

British national under Article 32 of Indian Constitution 

raising a question in regard to the right of a detenue to have 

a meeting and interview with her lawyer and members of 

her family. She was denied the facility of interview with her 

lawyer. It was imposed by the authorities under the prison 

rules. The principal ground on which the Constitutional 

validity of these provisions was challenged was that these 

provisions were violative of Article 21 of the Constitution. 

In this context the Court condemned cruelty by torture in the 

following words “Any form of torture or cruel, inhuman or 

degrading treatment would be offensive to human dignity 

and constitute an inroad into this right to live and it would, 

on this view, be prohibited by Article 21 unless it is in 

accordance with the procedure prescribed by law, but no law 

which authorizes and no procedure prescribed by law, which 

leads to such torture or cruel, inhuman or degrading element 

can never stand the test of reasonableness and non 

arbitrariness it would plainly unconstitutional and void as 

being violative of Article 14 and 21. It would be seen that 

there is implicit in Article 21 the right to protection against 

torture or cruel, inhuman or degrading treatment, which is 

enunciated in Article 5 of the UDHR and guaranteed by 

Article 7 of the ICCPR. The right to live, which is 

comprehended within the broad connotation of the right to 

life, can concededly be abridged according to procedure 

established by law and therefore when a person is lawfully 

imprisoned, this rights to live is bound to suffer attenuation 

to the extent to which it is incapable of enjoyment by reason 

of incarceration.” The Court strongly spoke against affront 

to prisoners dignity by relying on the international 

instruments. 

In Prem Shankar Shukla v. Delhi Administration, the 

Supreme Court strongly spoke against affront to prisoner‟s 

dignity. The Court struck down the rule of handcuffing as 

violation of human rights on the basis of the international 

standards laid down in Article 5 of the UDHR, 1948 and 

Article 10 of the ICCPR, 1966. 

This period saw justice V.R. Krishna Iyer and P.N. 

Bhagwathi towering over others as champions of prison 

justice. In Charles Sobraj v. Superintendence, Central Jail, 

Tihar, V.R.Krishna Iyer,J,. observed that “Iron is allergenic 

to human body” and categorically stated that “Iron chains, 

bar fetters and handcuffs should not be imposed on any 

prisoner except with the permission of the Court.” Deeply 

pained by tales of torture in prison Court expressed its 

anguish in these words, “we are deeply disturbed by the 

diabolical recurrence of police torture resulting in a terrible 

scare in the minds of common citizens that their lives and 

liberty are under a new peril when the guardians of the law 

gore human rights to death, the vulnerability of human 

rights assumes traumatic torturesome poignancy when the 

violent violation is perpetrated by the police arm of the State 

whose function is to protect the citizen and not to commit 

gruesome offences against them as has happened. Police 

lock-up if reports in news papers have a streak of credence 

are becoming more and more awesome cells. This 

development is disastrous to our human rights awareness 

and humanist constitutional order.” 

The Constitutionality of the death penalty was raised by the 

Supreme Court on several occasions. The Law Commission 

of India in its 35th report was for retaining the death 


sentence in India. Adequate safeguard is prescribed in the 

Criminal Procedure Code for imposing death penalty and all 

relevant facts and circumstances are taken into consideration. 

The judge balances a number of aggravating or mitigating 

circumstances of the case and records his reasons in writing 

for awarding the death sentence. Ordinarily for murder, life 

sentence would be an appropriate punishment and for death 

penalty special reasons must exist. In several cases the Court 

emphasized the fact that death penalty is an exception rather 

than a rule and it ought to be imposed only in the gravest of 

grave cases of extreme culpability or in the rarest of rare 

cases when the alternative option is unquestionably 

foreclosed. But it is criticized that it is violation of 

International human rights. Article 6(1) of the ICCPR states 

“Every human being has the inherent right to life. Law shall 

protect this right. No one shall be arbitrarily be deprived of 

his life.” Article 6(2) provides “In countries which have not 

abolished the death penalty, sentence of death may be 

imposed only for the most serious crimes in accordance with 

the law in force at the time of the commission of crime and 

not contrary to the provisions of the present covenant.” 

Further Article 6(6) states “Nothing in this article shall be 

invoked to delay or to prevent the abolition of capital 

punishment by any State party to the present covenant. But 

when we read the complete provision of Article 6 it is clear 

that its intention was not to abolish death penalty completely. 

In 1982, UN Human Rights Committee commenting on 

Article 6 supports for the abolition of death penalty and 

requested the world countries to take adequate measures in 

this regard. The Second Optional Protocol of the ICCPR 

requires the state party to abolish death penalty. 

The validity of the capital punishment was challenged in 

Bachan Singh v. State of Punjab on the ground of fallibility 

in the legal process, resulting in the execution of innocent 

people. The Supreme Court reconsidered the earlier 

judgments in the case of Rajendra Prasad v. State of UP and 

relied on the inter-relationship of Articles 14, 19 and 21 as 

we achieved in Maneka Gandhi v. Union of India to give its 

judgments. This novel approach gave a new dimension of 

interpretation of fundamental rights and freedoms. The 

question pondered over by the Court was whether death 

sentence would violate Article 21, and Article 6(1) of the 

ICCPR. On international standards on death penalty and 

ICCPR, the Court observed that most states subscribing to 

these international standards have retained the death penalty 

for murder and a few other crimes in their penal laws. 

Finally it held that death penalty did not violate Article 21 

because neither India‟s ratification of the ICCPR nor the 

expansive interpretations of Article 21 after the Maneka 

Gandhi case have made a change in the prevailing standards 

of decency and human dignity. It also reasoned that ICCPR 

did not outlaw capital punishment as such. 

In Jolly George Verghese v. Bank of Cochin, , the Court 

discussed the question whether a person could be arrested 

and detained in civil prison on the ground of inability to 

fulfill a contractual obligation. Viewing this case from the 

angle of Article 11of the ICCPR, the Court said that „no one 

shall be imprisoned merely on the ground of inability to 

fulfill a contractual obligation‟. The question of 

interpretation was the impact of a provision in the 

international covenant on a provision in the national law. 

Here, Section 51 of the Civil Procedure Code was to be 

interpreted in the light of Article 11 of ICCPR to minimize 

the possibility of detention for breach of contractual 

obligation.. Justice V.R.Krishna Iyer observed that, “to this 

extent, Section 51 CPC was amended judicially, in the light 

of a provision in the international human rights document.” 

The Rights of the accused as stated in Article 22 of the 

Constitution was discussed by the Supreme Court in the 

light of the international instruments. In CBI v. A.J. 

Kulkarni, the question of production of the accused within 

24 hours to the nearest Magistrate was raised before the 

Supreme Court from the human right perspective. By 

harmonizing Article 9 and Article 14 of the ICCPR, 1966 

the Court observed that, if there is failure to produce the 

arrested person before the nearest Magistrate within 24 

hours, it makes the arrest illegal. The judiciary authorized 

the detention of the accused under judicial custody or police 

custody from time to time if the investigation is not 

complete. There can be no detention in police custody after 

expiry of 15 days. If the investigation is not completed 

within 60 or 90 days, the accused has to be released on bail 

under Section 167(2) Cr.P.C. 

Administrations of justice in general and criminal or 

corrective justice in particular are sovereign rights of States. 

As per the traditional notion of sovereign immunity any 

wrongs committed against any person in course of 

employment is immuned from the liability. However the 

Court interpreted sovereign immunity in a different manner 

in the light of international instrument and held the liability 

of State to compensate in wrongful arrest or detention. This 

period saw Compensatory jurisprudence being developed by 

the Supreme Court, though India had not ratified and had 

reserved the clause of compensation for victims in lieu of 

Article 9(5) of ICCPR, but it is adopted in several decisions 

by the Supreme Court. Thus was started a new era of 

compensatory jurisprudence in Indian legal history. This 

newly forged weapon is helped to protect the torture victims 

in many of its decisions. 

In Rudal Shah v. State of Bihar, the petitioner was 

awarded Rs.35, 000 as compensation against the State of 

Bihar as he was kept in jail for 14 years after he was 

acquitted by a criminal court. The question before the Court 

was whether it could grant some compensation under Article 

32 to the petitioner for his wrongful detention. The Court 

strongly criticized the inefficiency of the administrative 

mechanism leading to flagrant infringements of fundamental 

right and held the opinion that it cannot be corrected by any 

other means. It led to the judiciary to adopt the right to 

compensation for the unlawful acts of the government. This 

stand of the Court was repeated in Bhim Singh v. State of 

J&K wherein the Court awarded compensation to the 

petitioner for his illegal detention in police custody which 

was held to constitute violation of Article 21. 

The Court in Sheela Barse v. Secretary, Children‟s Aid 

Society referred UN Declaration on Rights of Child, 1959 

for protection of children from exploitation in prison. While 

issuing the directions to the State of Maharashtra to protect 


children from exploitation in jails, the Supreme Court held 

that the convention which had been ratified by India, and 

which elucidated norms for the protection of children, cast 

an obligation on the state to implement their principles. In 

this connection the Court observed that: “In 1959, the 

Declaration of all the rights of the child was adopted by the 

General Assembly of the United Nations. In 1966, the 

International Covenants appropriately recognized the 

importance of the child. India is party to these International 

Charters having ratified the Declaration; it is an obligation 

of the government of India as also the State machinery to 

implement the same in the proper way.” In this way the 

Court emphasized the significance of international human 

right instrument and internalized it to the domestic law. 

In Saheli v. Commissioner of Police, the Court held that the 

State was liable to pay compensation to the mother of the 

deceased who had died because of police beating and assault. 

These two cases were decided by the Supreme Court by 

applying Article 9(5) of the ICCPR, thereby consolidating 

the international laws here. 

From 1993-2011 

This phase witnessed the Supreme Court going 

from strength to strength in its self proclaimed was as 

„people‟s protector‟ or „Supreme Court for Indians‟. Its 

activism was unabated allowing its sane voice to be heard 

above the din. The new weapon forged by it i.e, 

„Compensatory Jurisprudence‟ was used many times in 

these phase also, creating jitters in the administration. 

In Nilabeti Behera v. State of Orissa, Supreme Court 

considered the question of monetary compensation to the 

victim of unlawful arrest and detention. In this instant case 

the victim Suman Behera and another accused were 

handcuffed and tied together and kept in custody at the 

police station. Next day the body of the Suman Behera was 

found on the railway track with multiple injury. Additional 

Solicitor General urged that it was not a case of custodial 

death but of death of Suman Behera caused by injuries 

sustained by him in a train accident, after he managed to 

escape from police custody by chewing off the rope with 

which he had been tied at the Police outpost. The Court 

rejected the contention and ordered the government to pay 

compensation to the deceased mother by referring for 

support Article 9(5) of the International Covenant on Civil 

and Political Rights, 1966 which indicates that an 

enforceable right to compensation is not alien to the concept 

of enforcement of guaranteed right. Article 9(5) reads as 

follows: “Anyone who has been the victim of unlawful 

arrest or detention shall have an enforceable right to 

compensation.” 

In Joginder Kumar Case, the Supreme Court took measures 

for preventing custodial violence through documentation of 

arrests. It suggested that police should inform the arrest and 

detention of a person to a nearest relative, friend or neighbor. 

It is also urged that the UN Body of Principles for the 

protection of all the persons under any form of detention and 

imprisonment and the UN Standard Minimum Rules for the 

treatment of prisoners are to be followed. A shocked 

Supreme Court looked down at the inhuman treatment of 

prisoners lodged in hospitals, in Citizens for Democracy v. 

State of Assam and Ors, and observed, “the handcuffing and 

in addition tying with ropes of the patient-prisoners who are 

lodged in the hospital is, the least we can say, inhuman and 

in utter violation of the human rights guaranteed to an 

individual under the International law and the law of the 

land. We are therefore of the view that the action of the 

respondents was wholly unjustified and against law. We 

direct that the detenues – in case they are still in hospital – 

be relieved from fetters and the ropes with immediate 

effect” 

Supreme Court time and again held that torture is not 

permissible and it is a human rights violation. In D.K. Basu 

v. State Bengal of West is a case all those matters related to 

torture of prisoners are outlined and steps to be taken by the 

authorities to end such torture was given in the form of 

guidelines by the Court. It observed that, “Custodial 

violence” and abuse of police power is not only peculiar to 

this country but it is widespread. It has been the concern of 

International community because the problem is universal 

and the challenge is almost global. The UDHR, which 

marked the emergence of a worldwide trend of protection 

and guarantee of certain basic human rights, stipulates in 

Article 5, “No one shall be subjected to torture or to cruel, 

inhuman or degrading treatment or punishment. “ Further 

the Court held that the custodial death is the worst crime in a 

civilized society governed by the Rule of Law. The right 

inherent in Article 21 and 22(1) of the Constitution require 

to be jealously and scrupulously protected. Any form of 

torture or cruel, inhuman or degrading treatment would fall 

within the ambit of Article 21 of the Constitution, whether it 

occurs during investigation, interrogation or otherwise. The 

precious rights guaranteed by Article 21 of the Constitution 

of India cannot be denied to convicts, under trials, detenues 

and other prisoners in custody, except according to the 

procedure established by law and by placing such 

reasonable restrictions as are permitted by law. Despite the 

pious declaration, the crime continues unabated, though 

every civilized nation has shown its concern and takes steps 

for its eradication. 

In this case, the Court went to the extent of saying that since 

compensation was being directed by the Courts to be paid 

by the State, which has been held vicariously liable for the 

illegal acts of its officials, the reservation to Article 9(5) of 

the ICCPR by the government of India has lost its relevance. 

In fact, the sentencing policy of the judiciary in torture 

related cases, against erring officials in India has become 

very strict. For an established breach of fundamental rights, 

compensation can now be awarded in the exercise of public 

law jurisdiction by the Supreme Court and High Courts, in 

addition to private law remedy for torture action and 

punishment of wrongdoer under criminal law. In this case 

the Court gathering support from Article 5 of UDHR laid 

down a code for protection of detainees at and after arrest. 

Regarding award of compensation in case of illegal arrest 

and detention, by referring to Article 9(5) of the ICCPR it 

observed that, “The claim of the citizen is based on the 

principle of strict liability to which the defence of sovereign 

immunity is not available and the citizen must receive the 


amount of compensation from the State, which shall have 

the right to be indemnified by the wrongdoer. In the 

assessment of compensation, the emphasis has to be on the 

compensatory and not on punitive element. The objective is 

to apply balm on the wounds and not to punish the 

transgressor or the offender, as awarding appropriate 

punishment for the offence (irrespective of compensation) 

must be left to the criminal courts in which the offender is 

prosecuted, which the State in law is duty bound to do.” 

Compensatory Jurisprudence was once again stressed by the 

Supreme Court in People‟s Union for Civil Liberties v. 

Union of India & Another, A large number of cases were 

referred to and once again the Court relied on ICCPR 

instrument of 1966, read which was along with our 

Constitutional rights to chalk out protective and remedial 

measures earlier unheard of to torture victims in police 

custody. This case was concerned with the award of 

compensation in a case of fake encounter resulting into 

custodial death of two persons alleged to be terrorists, who 

were shot dead by the police. The Court considered the 

question of fake encounter by police while the accused was 

in custody. By referring Article 9(5) of the ICCPR and a 

good number of foreign judgments, the Court awarded a 

compensation of Rs. 1 lac to the families of each of the 

deceased families. 

Right against exploitation is available to persons 

including prisoners and hence no prisoner can be compelled 

to work forcibly. In State of Gujarat v. Hon‟ble High Court 

of Gujarat, the Court considered the question of putting 

prisoners to hard labour, as part of their punishment. It laid 

down that they should be paid wages for such work at rates 

prescribed under Minimum Wages Law. Otherwise the 

person provides service to another for remuneration less 

than minimum wage labour and that service would amount 

to “forced Labour” or „beggar‟ under Article 23. In this case 

the Court referred the provision Article 8 of the ICCPR 

which says that, “No one shall be held in slavery and the 

slavery trade in all their forms shall be prohibited.” 

In State of Andhrapradesh v. Challa RamakrishanReddy 

& Others, the Supreme Court cautioned the public 

authorities that the Constitutional right to life should not be 

denied to anyone, even to persons detained or imprisoned, as 

they do not cease to be … human beings … and still retain 

the residue of constitutional rights. Punishment or sentence 

that may be imposed on accused persons or prisoners, which 

constitute torture or cruel by inhuman or degradation 

treatment, can amount to violation of the right to life. The 

Court relied on the combination of Article 14 and 21 of the 

Constitution and clubbed it with international legal 

principles embodied in Article 5 of the UDHR and Article 7 

of the ICCPR it held that “…. (A)ny form of torture or cruel, 

inhuman or degrading treatment would be offensive to 

human dignity and constitute an inroad in to this right to live 

and it would, on this view, be prohibited by Article 21 

unless it is in accordance with procedure prescribed by law, 

but no law which authorizes and no procedure which leads 

to such torture or cruelty, inhuman or degrading treatment 

can ever stand the test of reasonableness and nonarbitrariness: 

it would plainly be unconstitutional and void 

as being violative of Article 14 and 21. 

In Pratap Singh v. State of Jharkhand and another, 

the Constitutional bench of the Supreme Court discussed 

whether the date for determination of age of juvenile 

offender is date of offence or the date he produced before 

the Court was raised before the Court. In this connection the 

Court observed the obligation of the enactment of Rule 9 

and Rule 27 of the Juvenile Justice Act, by referring the 

United Nations Standard Minimum Rules for the 

Administration of Juvenile Justice, 1985 also know an 

Beijing Rules and declare that the rules in the legislation 

shall not be interpreted as precluding the application of the 

Standard Minimum Rules for the treatment of prisoners 

adopted by the UN and other human rights instruments and 

standards recognized by the international community that 

related to the care and protection of the young. 

In Aloke Nath Duta v. State of West Bengal, the appellant 

was sentenced to death for conspiring to commit murder. On 

the issue of the death penalty, Justice S.B.Sinha mentioned 

the growing demand in the international forum to abolish the 

death penalty and referring to the Second Optional Protocol 

of the International Covenant on Civil and Political Rights, 

1966, converted the death penalty to life imprisonment 

based on its precedent and the evidentiary issues involved in 

this case. 

Again, in Munshi Singh Gautam v. State of M.P. the 

Supreme Court set aside the conviction of the three accused 

on the basis of the evidentiary and procedural issues and 

held that Article 5 of the UDHR highlights the problem of 

torture and custodial violence as one of universal concern. 

In Dalbir Singh v. State of U.P. & Ors The Court held 

that rarely in cases of police torture or custodial death, there 

is any direct ocular evidence of the complicity of the police 

personnel, who alone who can explain the circumstances in 

which a person in their custody had died. Torture and 

custodial violence cannot be permitted to defy the 

fundamental rights under Articles 20(3) and 22 of the 

Constitution by relying Article 5 of the UDHR. The court 

awarded compensation for the petitioner. 

Similarly in Swamy Sharaddanand v. State of 

Karnataka, Justice S,B,Sinha observed that “growing 

demand in the international fora, particularly the Second 

Optional Protocol of International Covenant on Civil and 

Political Rights, 1986, the American Constitution of Human 

Rights etc are recommended to abolish the death penalty and 

to bring the change in the barbaric sentence”. The Court 

relied the international human rights instruments and 

regional instruments in the domestic law to make reform in 

the death sentence. 

Recently the Court assimilated the international human 

rights instruments relating to the issue of non-bailable 

warrants in Inder Mohan Goswami v. State of Uttaranchal, 

It quashed the non-bailable warrants issued by the lower 

court. It relied on several decisions to reach the conclusion, 

and mentioned that liberty is an important human right 


enunciated in the American Declaration of Independence, 

1776, the French Declaration of the Rights of Men and the 

Citizen, 1789, the Universal Declaration of Human Rights 

and the International Covenant on Civil and Political Rights, 

1966. 

Justice S.B. Sinha in Harendra Sarkar v. State of Assam 

with Kailash Gaur & Ors v. State of Assam, while discussed 

the application of “Doctrine of Reverse Burden” in certain 

category of offences, where accused has burden to establish 

his innocence before the Court of law, the Court observed 

that “whether parliament intended to lay a different standard 

of proof in relation to certain offences or certain pattern of 

crimes, it did so. In such a case subject to establishing some 

primary fact, the burden of proof has been cast upon the 

respondent. There is large number of statutes where the 

doctrine of reverse burden has been applied. Save and 

except those cases where Parliamentary statutes apply the 

doctrine of reverse burden, the Court should not employ the 

same per so would not be violates of UDHR, but also the 

fundamental rights of the accused as envisaged under 

Article 21 of the Constitution of India.” 

In Man Bahdur v. State of A.P. the Court while 

discussing the right to a fair trial of the accused in the light 

to international instrument. It observed that, “Article 12 of 

Universal Declaration of Human Rights provides right to a 

fair trial. Such rights are enshrined in our Constitutional 

scheme bring Article 21 of the Constitution of India. If a 

right to fair trial, his case must be examined keeping in view 

the ordinary law of the land. 

In Smt.Selvi and Ors v. State of Karnataka, the Court 

discussed the whether the involuntary administration of the 

impugned techniques violates the „right against selfincrimination‟ 

enumerated in Article 20(3) of the 

Constitution. The Court recognized that the right against 

self-incrimination has been recognized in the international 

human rights instruments. It observed that “in the ICCPR, 

Article 14(3)(g) enumerates the minimum guarantees that 

are to be accorder during a trial and states that everyone has 

a right not to be compelled to testify against himself or to 

confess guilt and the guarantee of „presumption of 

innocence‟ bears a direct link to the right against self 

incrimination since compelling the accused person to testify 

would place the burden of proving innocence on the accused 

instead of requiring the prosecution to prove guilt.” 

Guaranteeing civil and political rights to citizens is 

mandatory in a democracy. The Indian Constitution framed 

for a nascent democracy fresh from a long colonial past has 

wide ranging civil and political rights. Almost all the 

positive aspects of UDHR are embedded in the Constitution. 

The same zeal was shown by India, when it ratified the 1966, 

Civil and Political rights convention excepting provisions. 

When the Constitution incorporates and the government 

accepts international human rights provisions substantially, 

the gap between the international and the domestic law is 

minimal and the gap widens when it is to the contrary. The 

role of the Supreme Court in harmonization is more so if the 

gap is wide. Here the role of the Supreme Court is not so 

wide. Yet the above analysis under different phases reveals 

that the Supreme Court‟s role is not the same in all 

categories. In one it is vibrant, in another it is dormant and 

in yet another presence is visible. All this depends on the 

width of the gap to be bridged. 

Conclusion 

Prisoner‟s rights are sensitive category under the 

Civil and Political rights of the international human rights 

instruments and the domestic legislations. It is found that 

there are 28 cases reported from 1950 to 2010. 

Phases Reference Expansion 

First Phase (1950-66) Nil Nil 

Second Phase (1966-79) 1 2 

Third Phase (1979-93) 0 9 

Fourth Phase (1993-2010) 0 16 

Total 1 27 

It is found that the role of the Supreme Court in the 

enforcement of the international human rights instruments 

touched the entire gamut of criminal jurisprudence starting 

from the arrest of a person, for an alleged offence, including 

arrest on suspicion and ending in capital punishment and 

compensation in the case of fake encounters. The last aspect 

i.e. compensatory jurisprudence was unheard of earlier in 

conventional common law tradition where immunity is 

invoked to defend the state and its authorities while 

discharging their function in the process of maintaining law 

and order and jail administration. The doctrine of sovereign 

immunity erases all excesses. But the activistic Supreme 

Court nailed that effectively. 

It is also found that all the cases except one in the prisoners‟ 

category have been used to expand the horizon of human 

rights available to prisoners. Only in A.D.M. Jabalpur case, 

the Supreme Court stopped with mere reference of the 

international instrument and did not go in for expansion. 

This case was decided during the darkest period of Indian 

democracy, when national emergency was in force. 

Probably due to that, the Supreme Court did not avail the 

opportunity of expanding the human rights available to the 

prisoners. 

In Rudal Shah case, the Supreme Court directed the 

authorities to pay compensation to the victim who was 

negligently detained in prison without any authority of law 

for a period of 14 years. This was in accordance with the 

international norms. Similarly, compensation was awarded 

to the victim who was kept under illegal detention by the 

police in Bhim Singh v. State of Jammu & Kashmir case. In 

Niabati Behra and Saheli, the mothers of victims of 

custodial violence were awarded compensation by the 

Supreme Court. 

Compensatory jurisprudence apart, the Supreme Court 

ventured into aying detailed guidelines to safeguard the 

rights of the prisoners. In Sheela Barse case the Court aid 

down guidelines to women prisoners including detenues 

who are under police custody. It is based on UDHR 

stipulations. An attempt was made to extend the human 

rights available to other prisoners including male prisoners 


in Joginder Kumar Singh case. It is related to the treatment 

of prisoners. 

The process of harmonization was at its peak in D.K. Basu 

case, where detailed guidelines dealing with the procedures 

of arrest and detention and protection of prisoners including 

compensation for victims of fake encounters was laid down. 

The Court stipulated that the guidelines as laid down in this 

case are to be followed till appropriate legislative 

enactments are made. Till date no such legislation has been 

passed (except minor modifications made in the present rule, 

2007) to replace this code, which has been inspired by the 

international instruments. The Standard Minimum Rules of 

Prisoners laid down by the UN was applied in Prem Shankar 

Shukla case, to forbid handcuffing and other inhuman 

treatments, normally meted out to under trial prisoners by 

the police. In Kulkarni case bail was granted to the prisoners 

for the failure of the prosecution to complete investigation 

on time. However while ratifying the Civil and Political 

Rights, India categorically made few reservations. One such 

reservation was on compensation to the victims. But in the 

cases cited above, the Supreme Court brought in the 

principle of compensatory jurisprudence in India even in the 

absence of legislation on the same. The Supreme Court 

brought in harmonization to enable the prisoners to have all 

these human rights which they can possibly have. Hence for 

the furtherance of human rights of prisoners the Court felt it 

necessary to harmonize international laws. 

republican Constitution introduced various rights to 

prisoners in its Constitution, but the same prison system and 

police system of the British Raj continue. In spite of 

Constitutional provisions, the structural and functional 

changes in the police system could not take place. Therefore 

some of the human rights available to prisoners at the global 

level were denied to Indian prisoners. Hence in this sphere 

the Supreme Court harmonized and enforced widely when 

compared with other Civil and Political Rights. 

From the above analysis it is clear that the Supreme Court 

played a substantial role in enforcing the international 

human rights with the domestic human rights with reference 

to Civil and Political Rights dimensions. In the process of 

harmonization, the Supreme Court did not rest with mere 

invocation of international human rights instruments, but 

also saw to it that some of the rights available in the 

international instruments become part and parcel of the 

domestic law and thereby enforceable. Some part of the 

related judgements is quoted verbatim to substantiate the 

above findings relating to qualitative changing trend of the 

Supreme Court. For instance, in Jolly George Verghese v. 

Bank of Cochin, the decision concluded “indeed the 

construction I have adopted of Section 51 Civil Procedure 

Code has the flavour of Article 11 of the Human Rights 

Covenants, counsel for the appellant insisted the law and 

justice must be on speaking terms – by justice he meant, in 

the present case, that a debtor unable to pay must not be 

detained in civil prison.... counsel for the respondent did 

argue that international law is the vanishing point of 

jurisprudence is itself vanishing in a world where humanity 

is moving steadily, though slowly, towards a world order, 

led by that intensely active, although yet intellectual body, 

the UNO. Its resolutions and covenants mirror the 

conscience of mankind and inseminate, within the member 

states, progressive legislation, but till this last step of actual 

enactment of law takes place, the citizen in a world of 

sovereign states has only inchoate rights in the domestic 

courts under these international covenants.” 

Prisoner‟s human rights constitute an important domain for 

enforcement. As Professor Baxi in his book “Crisis of 

Indian Legal System” observed that after independence the 


110 

Occupational Hazards among Operators in a Garment 

Manufacturing Units 

Prof. Nila.A.Chotai, Assistant Professor, Acharaya’s Bangalore B- School, Dept of Management, 

Lingadheernahalli, Magadi Road, Bangalore-560091, Karnataka – India 

ABSTRACT: 

A comparative study on male and female workers between 

30-35 years of age was conducted regarding occupational 

hazards in garment manufacturing units located in 

Bangalore. The total sample size was 110 which comprised 

of 55 men and 55 women. The finding shows that maximum 

(54.5 per cent) of male and (45.4 per cent) of female 

workers faced problems due to amount and intensity of 

light, majority of (49.0 per cent) male and (36.3 per cent) 

female get injured with machine needles. It was found that 

the poorly designed workstations, unsuitable furniture, lack 

of ventilation, inappropriate lighting, excessive noise and 

lack of personal protective equipment are main causes for 

occupational hazards. 

Keywords: Accidents, Apparel, Garment, Industry, 

Manufacturing Sewing, Tailors. 


A review of the textile industry quotes that it is the largest 

manufacturing sector in India accounting for around 20% of 

industrial output and 37% of total exports. India’s industrial 

output and 37% of total exports. Karnataka is major apparel 

sourcing destination for the global market with exports over 

Rs. 3000 crore in 2000-01 making it the second largest 

garments exporter in India. There 5777 factories in India 

employing 3, 27,397 personnel producing goods both for 

home markets and for export. There are 780 garments 

industries in Bangalore alone. Women form 80% of 

workforce in industry. The textile garment industry is at the 

forefront of the globalization process, where multinational 

investors continuously shift production from one part of the 

world to another in search of low wages and even more 

“competitive” locations. This has led to an increase in 

working hours and a substantial reduction in safety 

standards, especially in the newly industrialized countries. 

The occupational hazards are those hazards which are faced 

by the workers due to poor working environment. 

Parimalam et al. (2006) revealed that the congested work 

area, improper ventilation, dust, unergonomically designed 

workstation, excessive noise were the main constraints faced 

by the workers in garment manufacturing units. Noise and 

vibration are often found in textile settings, garment 

manufacturing units, and many other workplace 

environments where predominantly women work. 

Occupational noise exposure commonly results in hearing 

loss and distortion. Edith (2001) revealed that quality and 

type of lighting can have a significant impact on our health 

and comfort. Noise related hearing loss may result in 

distortion of sound, including auditory perception of sound 

of co-workers speech. The work environment in a majority 

of these units is unsafe and unhealthy. These include poorly 

designed workstations, unsuitable furniture, lack of 

ventilation, inappropriate lighting, excessive noise and lack 

of personal protective equipment. People working in such 

poor or substandard environment are prone to occupational 

diseases. 

II. 

MATERIALS AND METHODS 

The present study was conducted in garment manufacturing 

units located in Bangalore. Total of 110 sewing machine 

operators, 55 men and 55 women of garment manufacturing 

units aged between 30-55 years were selected. Purposive 

sampling technique, semi structured interview schedule, 

observation technique and equipments like noise level meter 

and illuminometer was used to check the level of noise and 

intensity of noise respectively. 

III. 

RESULT AND DISCUSSION 

It is seen from table-1 that Maximum (54.5 per cent) of male 

and (45.4 per cent) of female workers faced problems due 

to amount and intensity of light, 14.5 per cent male and 20.0 

per cent female workers faced problems due to too much of 

noise, 16.3 percent men and 14.5 per cent women reported 

dust problems due to improper ventilation system whereas 

5.4 per cent men and 3.6 per cent women reported problems 

due to vibration. 

. 


111 

TABLE 1. DISTRIBUTION OF WORKERS 

ACCORDING TO OCCUPATIONAL HAZARDS. 

Occupation 

al Hazards 

It was revealed from the table-2 that intensity of light in the 

industry for men was more than that of women.. The 

average level of illumination in the stitching sections of both 

the units was of 411.1 and 331.1Lx respectively. This was 

found to be low when compared to the standard levels 

recommended by Grandjean, and Ghosal, which are 750 and 

400 Lx respectively in cutting and sewing sections. 

TABLE 2 INTENSITY OF LIGHT IN GARMENT 

MANUFACTURING UNITS. 

SL. MANUFACTURING MEAN INTENSITY 

NO 

UNITS 

LIGHT 

1. MEN 411.1 Lx 

2. 

MALE WORKERS 

Frequenc 

y 

(n=55) 

WOMEN 

RESPONDENTS 110 

Percenta 

ge 

FEMALE 

WORKERS 

Frequenc 

y (n=55) 

331.1 Lx 

Percenta 

Heat 6 10.9 7 12.7 

Occupation 

al Hazards 

ge 

8 14.9 11 20.0 

MALE WORKERS 

Frequenc 

y 

(n=55) 


Percenta 

ge 

FEMALE 

WORKERS 

Frequenc 

y (n=55) 

Vibration 3 5.4 2 3.6 

Ventilation 

Percenta 

ge 

9 16.3 8 14.5 

Light 30 54.5 25 45.4 

None of 

Above 

5 9.1 4 7.2 

TABLE 3 NOISES IN GARMENT MANUFACTURING 

INDUSTRIES. 

SL. 

NO 

MANUFACTURING 

UNITS 

MEAN LEVEL OF 

NOISE 

1. MEN 93.8Db 

2. WOMEN 87.01dB 

TABLE 4 DISTRIBUTIONS OF WORKERS 

ACCORDING TO ACCIDENTS DUE TO 

EQUIPMENTS USED AT WORKPLACE. 

Equipments 

at 

workplace 

Electric 

Wires 

Piercing 

Needle 

Press 

(Burn) 

Table-4 shows that the accidents occurred due to 

equipments used at workplace. It is revealed that majority of 

49.0 per cent men and 36.3 per cent women get injured with 

machine needles. Whereas 21.8 percent male and 29.0 per 

cent female got injured by scissors during cutting operations 

and some minor accidents 5.4 per cent each in both male 

and female workers respectively. 

Conclusion: 

MALE WORKERS 

Frequency 

(n=55) 


Percentage 

FEMALE WORKERS 

Frequency 

(n=55) 

Percentage 

4 5.4 7 12.7 

25 49.0 20 36.3 

6 10.9 4 5.4 

Scissors 12 21.8 16 29.0 

None of 

Above 

8 14.5 8 14.5 

Accidents are a common occurrence in the apparel 

manufacturing industry. Both workers and the managements 

should be made aware of the problems associated with 

accidents and on the correct and continuous use of personal 

protective equipments that are recommended for each task 

in the industry. 

It is observed from the table-3 that level of noise in male 

industry was more than female industry. Some unions have 

set a noise level of 80 dB as safe standard to work. The level 

of noise in male manufacturing units was more than 93.8 dB 

and in women manufacturing units 87.01 dB which was 

more than the standard level of noise. 


112 

REFERENCES 

1. Farkkila (1978) A study of portable vibrating tools 

in the relation to the clinical effects they produce. 

Br.J Ind. Med 4:141-63. 

2. Karasch, B. (2005) Textbook of Occupational and 

Environmental Medicine. Philadelphia: W B 

Saunders, 356-364 

3. Maier, E. (2009) Adaptive Lights can Monitor 

what Room Occupants Are Doing and Setting 

Lighting Accordingly. Science Daily; Pg- 35. 

4. Sakakibara, D (1995), “Overhead Work and 

Shoulder- neck pain in orchard farmers harvesting 

pears and apples”. (Ergonomics, 38 (4), 700-706. 

5. Sakurai and Matoba (1986), “Vibration syndrome 

again”. Br Med Journal 282: 1738-39. 

6. Vikrunnen, H. (2005), “Long working hours and 

health”. Scandivian Journal of work, Environment 

and Health, Vol 29: 171-178. 

7. Puliani S. The Factories Act, 1948 along with 

Karnataka Factories Rules 1969 and allied laws, 

4th Edition Bangalore Karnataka Law Journal 

Publications 2000. 

8. Pandita S. The plight of workers in Export 

Processing Zonein India. [monograph on the 

Internet] New Delhi: Society for Participatory 

Research In Asia (PRIA) and the American Centre 

for International Labour Solidarity (ACILS) 

[cited2004, Jul 28]. Available from : 

http://www.iimahd.ernet.in/- 

partha/EPZ%20Study%20 report.htm 


Appraisal system of the company payroll employee 

Senior, Middle, Lower Management and out-sourced 

Skilled, Unskilled Employees 

Kush-Kumar, Research Scholar, India 

ABSTRACT 

Appraisal system widely used in the enterprise, it should be 

systematically imposing the performance level of an 

individual as well as organization, it provides data about 

past, present, and expected performance of the employ 

which is helpful in taking decision on selection training and 

development, if P.A.S is implementing well it can take the 

organization on a fast development trade and faster 

productivity, through commitment, motivation or complete 

people. Measure aerial performance, compose actual 

performance with standard, discuss the appraisal with the 

employee it necessary initial correct action. I.TI e being a 

giant raised industrial enterprise has adopted a scientific 

system of performance appraisal of its Human Resource the 

most widely used henequen is the self appraisal system. 

Achievements have been received from training. Result 

have been obtained on the basis of a related to work 

environment and personal motivation from senior, 20, 

middle 30, lower manage50 making a total number of 100& 

out sources of skilled and un skilled at workers for total 

number of 400 skilled and 300 unskilled workers making a 

total number of 700 . Senior, middle & lower management 

on company pay roll employ and outsource skilled and 

unskilled levels generating a vibe rent work culture. the 

survey indicate that the integrated approach has brought 

about a radical change in over al performance of the 

employ particularly with reference to celerity of role and 

responsibility of various levels .the program has helped 

the participant to introspect and modify their behavior and 

improved communication approach at various levels, 

training programmed and work shop have not improved the 

overall climate and culture of the organization but also 

generated quality of life satisfaction among the 

management employee & workers in their work 

environment . 

Key World - work performance, management employ, outsources 

workers, Tobacco, Ghaziabad 

INTRODUCTION 

Steering a public enterprise in to-day highly turbulent 

business environment marked by unexpected crisis situation 

and changing economic market phenomena is indeed a 

difficult proposition it becomes all the more difficult when 

the enterprise is a large multi product and multi divisional 

one dealing with diverse markets and operating from 

locations situated for and wide, to survive and grow in a 

company has constantly review and innovative H.R.D 

strategies. 

The evaluation of the performance of employees is a key 

part of the function of staffing as the evaluation serves as a 

basis for judging the contribution and weaknesses of 

employees so that continuing efforts can be made to build a 

stronger and more effective organization. 

Human resource are key organizational assets since 

organization performance depends on the quality of 

employee effort on their ability and motivation by raising 

the quality of individual employees contributions to 

production, organizations can make significant 

improvements in their performance of company pay roll 

management. 

Performance appraisal is a systematic way of evaluating a 

workers performance and his/her potential for development, 

this continuous monitoring of the performance and periodic 

evaluation helps in retaining promotional and retraining 

policies. 

Performance can be appraised against some set standards to 

meet the needs of the organization and the employee, hence 

the technique must be sufficiently sensitive to pick up the 

difference between an effective and ineffective employee. 

Appraisal has two major purposes 

1. To let employees knows formally how their current 

performance is being rated 

2. To identify candidates for promotion 

I.T.C limited has a long history of 90 years the leader of 

Indian cigarette industry is a conglomerate of many 

diversified businesses having a overall turnover of Rs. 5000 

crore form hotels & tourism, agro, paper, etc, it was an ideal 

case worth studying for any good manager or researcher. 

RESEARCH OF THE PROBLEM 

For the ever increasing complexity of challenge facing 

organization and the place of change, both signal the 


escalating pressures that will be brought to bear on human 

resource personnel to play a proactive and strategic partner 

roles. Therefore, if PAS is implementing well, it can take the 

organization on a fast development track and faster 

productivity through commitment, motivated or competent 

people. 

• Facilitating upward and downward communication 

and sensitizing senior executives to problems at lower 

levels; 

• Developing and strengthening boss-subordinate 

relationships: 

• Role clarity and performance planning; 

NEED AND IMPORTANCE OF THE STUDY 

Performance can be appraised against some set standards 

According to McGregor the format performance appraisal 

plans are designed to meet three needs, one of the 

organization and the other two of the individual. These are :- 

• They provide systematic judgment to back up 

promotions, transfers, salary increments etc. 

• They let the subordinate know where he stands and 

whether any changes are required in his behavior attitudes, 

skill or job knowledge 

A sound performance appraisal system can be useful in. 

• Encouraging employees to express their views or to 

seek clarification on job duties. 

• Serving as a predictor for future responsibilities. 

• Preventing grievances, since the employees will 

know where they stand relative to their achievements 

• Increasing the analytical ability of the supervisors, 

since they will be directly involved in making judgment 

about their work‟s performance level. 


The most effective performance appraisal system have the 

following characteristics:- 

• The system must be bias-free. The evaluator must 

be objective and the methods of appraisal must be fair and 

equitable. The atmosphere must be that of confidence and 

trust. 

• It must be relevant. It should only measure 

behaviors that are relevant to the successful job performance 

and not any other personal traits. 

• It should be reliable, dependable, stable and 

consistent. High reliability is essential for correct decision 

making and validation studies. It should be sufficiently 

scientific, so that if an employee is evaluated by two 

difference evaluators, than the result should be significantly 

the same. 

Performance appraisal has become a very significant activity 

in most of the enterprises. It provides data about past, 

present and expected performance of the employees which 

is helpful in taking decisions on selection, training and 

development, increase in pay, promotion, transfers, and the 

like. These days a large amount of money is spent on 

performance appraisal by most organizations. The benefits 

of performance appraisal are as follows:- 

• It help the supervisor to evaluate the performance 

of his employees systematically and periodically. It also 

helps him to assign that work to individuals for which they 

are best suited. 

• Rating helps in guiding and correction of 

employees. The supervisor may use the result of the purpose 

of constructively guiding the employees in the efficient 

performance of work. 

• The ability of the staff is recognized and can be 

adequately rewarded by giving them special increments. 

• Performance appraisal can be used as a basis of 

sound personnel policy in relation to transfer and promotion. 

If the performance of an employee is better than other, he 

can be recommended for promotion, but if a person is not 

doing well on a job, he may be transferred to some other job. 

• Ratting can also be used to evaluate the training 

programmes. Weaknesses of employees are revealed by 

merit rating and the training programmes can he modified 

accordingly. 

• Performance appraisal provides an incentive to the 

employees to better their performance in a bid to improve 

their rating over others. 

• If the performance rating is done scientifically and 

systematically it will prevent grievances and develop a 

confidence amongst the employees because they are 

convinced of the impartial basis of evaluation. 

THE EVALUATION PROCESS 

Establish performance standards, Communicate 

performance expectations to employees, Measure actual 

performance, Compose actual performance with standards, 

Discuss the appraisal with the employee, If necessary initial 

corrective action. 

Achievements have been received for the training and result 

have been obtained on the basis of Questionnaire related to 

work environment and personal motivation from company 

pay roll employ senior, middle and lower management 

senior20, middle 30 & lower management 50 making a total 

of 100 & outsources of skilled and unskilled workers for a 

total number of 400 skilled and 300 unskilled workers 

making a total of 700. Response indicates the Training 

program have been well organized and perceived by both at 

senior and junior levels generating a vibrant work culture. 

The survey indicated that the integrated approach has 

brought about a radical change in the overall performance of 

the employees particularly with reference to the following 

aspects. 

1. Motivation level and morale have gone up considerably. 

2. The program has helped the participants to introspect and 

modify their behavior 

3. Improved communication approach at various levels 

These training programs and workshop have not only 

improved the overall climate and culture of the organization 

but also generated better quantity of life and satisfaction 

amongst the supervisors and workers in their personal lives. 

ABOUT ITC COMPANY 


ITC Limited has a long history of about 90 years and now 

marched into the next millennium. ITCV, decidedly the 

leader of Indian cigarette industry, is a conglomerate of 

many diversified businesses having overall turnover to the 

tune of Rs. 5000 crore. The group having started from its 

core competency business of tobacco and financial services 

has evolved as leader in many other businesses such as 

hotels an tourism, agro-businesses, paper business, etc. 

During this course of development in business, the ITC has 

undergone many ups and downs in its business as well as 

managerial practices. Thus, it seems to be a case worth 

studying for any good manager or researcher. 

It is the story of Scissors cigarette, the breadwinner brand of 

ITC, a doyen of Indian industry and the leader in cigarette. It 

is the story of ITC‟s struggle, with its breadwinner brand 

facing near extinction on account of competition. It is the 

story of how the company handled its dilemma-„to revive 

the brand of exit‟ – how it opted in favour of reviving the 

brand and how it succeeded in its mission. 

The ITC Scissors case is essentially a story of effective 

product management. From 1921 to date. Scissors had a 

long product life. It has seen many ups and downs 

and suffered some of the worst set-backs; but everytime, it 

has risen to new peaks of excellence and growth. In view of 

this unique phenomenon, the Scissors case represents one of 

the best examples of effective PLC management. The case 

vividly portrays how the company evolved a superb product 

market strategy, how it handled the inescapable product 

decline with care and caution, how it retrieved the product to 

normalcy and prolonged almost limitlessly its mature and 

profitable of life. 

ITC has its head quarter at Virginia House, 37 Chowringhee 

Road, Calcutta. Its annual turnover is more than Rs. 6000 

crores approximately and market capitalisation is more than 

Rs. 8,000 crores. It ranks 5th among the giant corporations. 

The company has network of branches & offices in the 

country. The Ghaziabad unit of the company is situated at 

Guldhar (Near Muradnagar) on the main Ghaziabad Meerut 

highway about 5 km from the heart of the city. It is 

connected with all important roads and highways. The 

production dept. of the company is fully air-conditioned 

because artificial huminidification is very 

necessary for the manufacture of cigarettes. The total 

strength of the employees in Ghaziabad unit including 

temporary, casual and contract labour is about 2500. 

In the year 1963-64, M/s NARHARI & CHAUDHARY CO. 

LTD., a leading Tobacco-Exporter of Guntur (A.P.) 

purchased the present premises of the company which 

was owned by a soap manufacturer. RAM INDUSTRIAL 

CORPORATION which is adjacent to the factory. 

M/s NARHARI & CHAUDHARY CO. LTD. (known as 

NCC) was a leading Raw Tobacco Exporter to 

Czechoslovakia. One of the partners of the NCC had a 

Czech wife, who was related to the top official of SKODA. 

Taking advantage of the relationship, NCC anaged to 

procure cigarette making machinery along with packing 

machines from SKODA on BARTER SYSTEM. These 

machines were installed in the present plot under dilapidated 

sheds. 

In the year 1964-65, NCC made an alliance with another 

reputed and leading export house “NAV BHARAT 

ENTERPRISE PVT. LTD. GUNTUR” as NCC did not have 

adequate finance, technical know- how etc. to produce and 

market cigarettes. However, with this alliance a new 

company was formed titled as TOBACCO COMPANY 

PVT. LTD., havingj its registered office at Hyderabad (A.P.). 

Subsequent6ly, ITC employed some technical personnel 

from the then IMPERIAL TOBACCO COMPANY LTD., 

Bangalore and this attempts was not successful because of 

lack of funds. After hanging on fire fro months together, 

they sold M/s ITC to M/s. MARCOPOLO & COMPANY 

LTD., Mumbai, the oldest tobacconist who had the sole 

distributorship for M/s GODFREY PHILIPS INDIA 

LIMITED. 

After reconstruction of the buildings, ITC started 

manufacturing on SKODA machines. The factory ultimately 

went into commercial production from 1967 against 

manufacturing charges of the GPI brands. D. 

MACROPOLO was a limited company and ITC became a 

limited company after take over. Over a period of time even 

D. MACROPOLO merged with GPI and ITC became a 

subsidiary of GPI. Since then there has been a continuous 

technological up-gradation in the factory which started 

increasing the filter cigarette production gradually and also 

started wrapping the cigarette packs. Also new generation 

tobacco cutting machines were installed to improve the 

quality. 

In 1970 the IMPERIAL TOBACCO COMPANY of India 

changed its name to INTERNATIONAL TOBACCO 

COMPANY LTD. This holds a new program me of 

diversification, which was aligned to national priorities and 

the phased disinvestment in foreign equity. 

FINDINGS 

HRD IN I.T.C. 

In ITC, HRD is an approach to the systematic expansion of 

people‟s work related abilities, focused on the attainment of 

both organizational and personal goals. 

The focus is on people, who are perceived as possessing 

skills, potential and who have ability to grow, change and 

develop. While the accent is on increasing talent and 

abilities, HRD in ITC works towards development of people 

in their organisational setting. The effort are balanced 

between the organisation‟s need the individual development 

although this ideal is obviously difficult to achieve, but 

every attempt in being made to get as near to it as possible. 

While the diversity of circumstances of individual public 

enterprises would dictate circumstances of training of 

individual manager in variety of ways, the essential pattern 

are applicable in appropriate forms to all public enterprises, 

what ever their size. Hence this study of ITC also provides 

positive direction and guidance to other in the area of 

Human Resource Development. 


To sum up the findings of the data collected and analysed, 

the researcher proceeds on the basis conclusion, as revealed 

by the study, that both the management. and executives 

recognize the importance and need of HRD in ITC and 

company is taking due interest and care to this effect. 

EXECUTIVE DEVELOPMENT POLICIES 

ITC has clear policy objectives to ensure continuous 

development of competent management personnel and make 

best use of both the human and material resources of the 

business. The training and development policy provides 

opportunities of advancement and growth to the executives 

and of promotion from within. It also provide of time both 

on the job and off the job. Majority of the executives in the 

middle cadre have been exposed to training and 

development programmes. 

PERFORMANCE APPRAISAL 

ITC has a formal performance appraisal and counselling 

skills system. The target setting programme coupled with 

the performance appraisal and counseling programme 

provide formal processes to ensure manager/employee 

contact for development and ounselling, away from the 

hustle and bustle of daily activities. 

An important feature is the self appraisal and counselling 

programme. ITC believes that employee are responsible and 

trustworthy enough to be able to reviewtheir own 

performance in a matured and balanced manner and they 

have, faith in this. 

The basic objectives of the Performance Appraisal System 

in ITC are: 

• Assessment of Performance and Review. 

• Individual Training and Development need 

identification. 

• Feedback and Follow-up of development. 

• Determine career growth. 

• Influence job rotation. 

• Extension or termination of contract/promotion. 

• Granting incentives and rewards. 

Appreciation / foreign deputation. 

The scheme is part of the overall Performance Review 

System that periodically reviews group/product wise 

performance and achievement to targets against what is 

outlined in the Annual Performance Plan. 

SUGGESTIONS 

1. According to the need of time some innovative 

HRD practices should be induced and implemented to 

minimise the ratio with reference for obtaining fair 

treatment with current appraisal system because the ratio is 

as follows:- 

Senior Management – 85 % 

Middle Management – 90% 

Lower Management – 90% 

2. The Chief executive should be fully committed to 

the goals of HRD in the organisationas the ratio with 

reference for obtaining the fair treatment is very less 

Senior Management = 20% 

Middle Management = 23% 

Lower Management = 8% 

3. The functional knowledge relevant to the role in 

the organisation is must as the ratio is quite remarkable 




4. The training is meant for improving the faculties 

of mind, working and generating new ideas, but the 100% 

this attitude is not found in this respect. 


Middle Management = 16.6667% 


5. There is a visible impact of executive development 

programme in back bone situation in terms of improved 

knowledge skills and attitudes of the individuals 

Sr. Management = 95% 

Middle Management = 93.333% 


6. The company should send their employees for 

workshop and Training programme on role analysis as the 

ratio is not upto mark. 




7. The fair dealing of boss & supervision have ever 

since derestricted & hurt the feeling of skilled by 6% and 

unskilled by% the organisation should check this out (on 

Company pay role). 3% of skilled & 9% of unskilled 

(outsource). 

8. The 14.666% of skilled workers and 24% of 

unskilled workers pay role are not satisfied with the present 

salary 3.75% or skilled & 4.333% of unskilled (out souring 

are not satisfied hence some this should be done in this 

respect 

9. 16.666% of skilled worker & 24% of unskilled 

(company pay role), 7% skilled & 9% unskilled (out 

souring) workers feel that they can improve their technical 

& managerial abilities if chances are given to them. Thus 

company should manifesh such type of abilities from time to 

time. 

10. The 6.25% of skilled workers & 7.333% of 

unskilled workers (out Source) feel that work load is not 

distributed equally. Hence techniques should be applied for 

equal distribution of work.The company should send their 

employees for workshop and Training programme on role 

analysis as the ratio is not upto mark. 


CONCLUSION 

The survey indicated that the integrated approach has 

brought about a radical change in the overall performance of 

the skilled and unskilled workers. The changes are visible 

particularly with reference to the following aspects : 

• Clarity of role and responsibility at various levels. 

• The interpersonal relations and job relation have 

improved significantly. 

• The motivation level and morale have gone up 

considerably. 

• The programme has helped the participants to 

introspect and modify their behaviour. 

• Improved communication approach at various 

levels. 

It has also been observed that these training programmes 

and workshop have not only improved the overall climate 

and culture of the organization, but have also generated 

better quality of life and satisfaction amongst the 

particularly amongst the supervisors and workers in their 

personal lives. Periodically the management development 

inputs are being given to staff to ensure that the cohesive 

team can achieve results. Staff members are also sent on 

external technical programmes to update their knowledge on 

the state-of-the art in the field of electronics, telecom and 

management and are given the opportunity to go on foreign 

deputation to get an exposure in advance technologies and 

new areas of interest. Also as part of development input 

good articles on technical/management areas are circulated 

to everybody. 

Basu, K.S. New Dimensions in Personnel 

Management (Kogan Page Ltd., London). 

Beach, Dale Personnel Management 

(Macmillan Publishing Co., New York) 

Alexander, K.C. Participative Management – The Indian 

Experience (Shri Ram Centre for Industrial Relations, New 

Delhi). 

Davis Keith 

Human Behaviour at Work (Tata 

McGraw Hill, New Delhi). 

Dayal, Ishwar Management Training in Organisation 

(Prentice Hall of India, New Delhi). 

Dwivedi, R.S. Management of Human Resources 

(Oxford & IHB, New Delhi). 

Flippo, B. Edwin Personnel Management (McGraw Hill, 

Kongakusha, Tokoyo, Japan). 

Ghosh, S. Trade Unionism in Underdeveloped Countries 

(Bookland, Culcutta). 

Giri, V.V. Labour Problems in India Industry (Asia 

Publishing House, Mumbai). 

Kapoor, T.N. Personnel Management and Industrial 

Relations in India (N.M. Tripathi & Sons Mumbai) 

To sum up, these programmes have become greatly 

instrumental in generating a swing for the creating of 

Learning Organisation. In order that these programme may 

be able to produce the maximum desired results, it is 

necessary that these programme are taken to a logical 

conclusion by covering the entire organisation, including the 

top management. Steps to achieve these objectives have also 

been started by ITC. 

There is a very positive response to training in ITC. Even 

some initially viewed training with skepticism, today see it 

as useful. In ITC, the contribution of the training function 

makes related to the processes of self-renewal, personal 

growth, appraisal and counseling, team building and target 

setting. In ITC, identifying, nurturing and development 

appropriate leadership values and styles are critical when 

building a collective ethos. Strategically, over the next year 

or two, the training function is poised to play a vital in 

building value leader within the organisation. 

REFERENCES 

Chatterjee, N. N. Management of Personnel in Indian 

Enterprises (Allied Book Agency, New Delhi). 

Gupta, C.B. 

Human Resource Management 

(Sultan Chand & Sons. New Delhi). 

Monappa, Arun Human Resource Planning and Career 

Planning (MacMillan, Ahmedabad). 

Agarwal, R.D. Dynamics of Personnel Administration in 

India (Tata McGraw Hill, New Delhi).

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