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International Journal of Organizational Behaviour & Management Perspectives Volume 1, Number 1, July -September 2012

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STRATEGIC CHALLENGES FOR HRM PROFESSIONALS

IN INDORE SOFTWARE INDUSTRY

Simple Verma1 Simranjeet Kaur Sandhar2

ABSTRACT

Indore is one of the fastest growing cities in the country today, One of the major reasons of the cities rapid economic growth is

large number of Software companies in the city like CSC, Impetus, Diaspark and Premier Biosoft. With the special grants

being provided by the state government Infosys and TCS would also be starting their development centers in the city. But a

constant challenge faced by these companies is lack of trained software professionals and the gap between the demand and

supply.

The paper attempts to find the major challenges being faced by the human resource professionals of these software

development companies in Indore and suggestions to overcome these challenges.

INTRODUCTION

The world today is experiencing a rapid growth in everything around us. We are all living in world full of technical things. Right

from a light bulb to a super computer, everything has importance since without them we would not be able to perform the daily

functions. Who so ever invents new things in technology is either a having God’s gift of a great mind or a technical university

pass out graduate! We are witnessing a lot of staggering growth around us in terms of mushrooming of new IT companies in

India which are making their mark in the society and the world by their continual advancements in technical field. Their

innovations help us perform our basic, every day duties with much ease and comfort.

These are the technologies we now rely upon heavily. Since there happens to be a dramatic increase in demand for technical

things and technology, we can see high number of Information technology companies in India these days. And by this

phenomenon, we can also see a rapid rise in the technical professionals associated with increasing players in IT Sector. Those

who are already working with these companies require a sound technical knowledge. These Information technology companies in

India are also moving shoulder to shoulder with each other so that everyone gets more and more job opportunities for thousands

of youngsters in the country. IT (Information Technology) is a major factor to gauge economic growth in the country. Therefore,

many media houses have conduct surveys to arrive at revenue structure of IT companies of India.

The top 10 software companies and hardware companies in India had average revenues of $1 billion in 2009-10, according to the

latest survey. IT Companies have been performing at a staggering rate of growth of about 50 per cent every year and has sustained

the global competition. Indian IT industry has made serious contributions to the world of IT by gifting some of the big IT

Companies of the industry from Indian origin.

Indore is one of the fastest growing cities in India and is the financial capital of the central India. The entire IT sector in Indore

can be classified into Offshore Development, BPO and the IT Departments in the entire industrial and SEZ manufacturing units

operating on ERP and department of MNC’s. There are a number of software companies that are located in the city Indore, which

provide a variety of software services to the clients. These companies also offer good job opportunities for the youngsters of the

entire country of India. Some of the most well known software companies of Indore are CSC, Impetus, Suvi, Apticraft, InfoBeans,

Batch Master Inc, Viscus. Armour Software, First Source, Emphasis and Tele-performance. All these companies are important

parts of the economy of the city. But these companies HR are now facing a challenging task of retaining the trained employees

with the major players hitting the market and the decline in supply of trained IT professionals. The lack of trained professionals is

a major cause of these middle level companies for not expanding their operations in the city.

REVIEW OF LITERATURE

Priti Yadav (2010), found that those who work as executives in HR department are not only responsible for hiring & firing, but

are also hander of contacting job references and administrating employee benefit. It’s true that any individual who works in HR

Department “Must be a people person”. Employees are human, not commodities and HR departments have to start seeing them

differently, with the current push towards strategies that engage employees, attract top talent, contribute to the bottom line this

change is imperative. HR department would create competitive advantage by building strong organizations, strong leaders,

managers, strong teams, & employees.

Prof Ashok Som (2008) found that as against the established notion, the gap between Indian public sector and private sector HRM

practices 9 structure of HR department, role of HR in corporate, Recruitment and Selection, pay and benefits, Training and

development, employee relation and key HRM strategies. Private sector firms have adopted a more rational approach than their

public sector counterparts; (2010) found that the nature of HR itself demands that organizations develop new capabilities and the

role of HR executives is to re-evaluate their competencies and to develop new ones to overall strategic redesign the organizations.

1Assistant Manager (Industry Interaction), Amity Global Business School, Madhya Pradesh, India, [email protected] 2Associate Professor, Indore Institute of Science and Technology, Madhya Pradesh, India, [email protected]

mailto:[email protected]




Arvind Singhal (2004) found that the various companies, especially those who need a very large number of production and

business operation management cadres, has to acknowledge that there is a problem and that they need to allocate substantial

corporate attention and financial resource for developing the human talent for their future growth needs. CEOs and heads of HR

function must find time to work closely with various academic institutions to help them develop curriculum more suited for the

current and future skill set needs. Otherwise, a nation of a billion inhabitants may soon have to start importing managers as well.

Davc Mackey (2006), found in his paper 10 HR trends that are changing the face of business, that HR needs to do real talent

management – know who your Stars are, nurture them, develop them, figure out what support they need to thrive in your

organization – because if you don’t another company will.

Kadence Buchanan (2006), found that she several other trends in the industry, as follows: (1) a shrinking talent pool,! (2) An

increase in outsourcing, (3) A more intense focus on work/life balance; (4) Changing workplace demographics, (5) Greater need

for talent management, (6) Ethics requirements, and (6) Globalization.

Rajat Sanyal (2011) identifies that IT companies are having high degree of attrition. The challenges for these companies are to

keep this attrition rate as low as possible. Various companies adopt different techniques to retain their employees like high pay

packets, ESOP, other benefits. So we have to keep this attrition rate as low as possible to retain super achievers.

Meenakshi Gupta (2011), writes in her article, that a tight job market, many organizations often experience precipitous and

simultaneous demands for the same kinds of professionals. In their quest for manpower, they are cajoling talent around the world.

In such a seller's market, software companies are striving to understand which organizational, job, and reward factors contribute to

attracting the best talent one having the right blend of technical and person-bound skills. The Indian software industry suffers

from a shortage of experienced people such as systems analysts and project managers, and attracting them is a key HR challenge.

Kiran Karnik (2003) found that The IT industry has, during the last decade, been probably the most attractive sector to work in. It

has, therefore, been able to get the best talent. The challenge now is to safeguard and build on this prime position. Attractive

compensation, challenging assignments, good working conditions and growth opportunities are amongst the main determinants of

where talent gravitates, along with the indefinable "glamour value" of any industry or a specific company. Taking care of these

parameters is a necessary task for the IT industry. Retaining talent is a major challenge for companies, especially in a growth

boom, when a lot of "seduction" of employees between one company and another is commonplace. However, the attrition rate for

the industry as whole, (i.e., people moving out of IT into other industry sectors) has been low. Even so, this will continue to be a

challenge at both levels: for the individual company and the industry.

RATIONALE OF STUDY

Indore is the education and industrial hub of the state Madhya Pradesh. In past few decades, number of big software companies

has made their presence felt in the city due to the special leverage provided by the state government in the form of SEZ’s. The city

is also armed with a lot of engineering colleges and institutes providing technical education. With the news that Tata Consultancy

Services agrees to open its development centre in Indore, many more IT giants would be lining up to avail the benefits being

provided by the state. Looking at the current trends, one can understand the major professionals employed in Indore are being

lured by big companies situated in other parts of the country.

A very big challenge faced now by these companies is to retain its trained workforce in the volatile market of today and to

maintain its supply of people with new players coming in. There exists a trend in the IT industry of high-jacking that the trained

man power moves from one company to other company. The research aims at finding the major challenges that HR Department in

Software and allied industry and to find solutions to overcome these challenges in coming times when business would expand

manifold but the trained workforce would be sparse in Indore.

OBJECTIVES OF STUDY

The specific objectives are as follows:

To assess critically the problems faced by the Human Resources executives of IT Industry.

To find out the challenges of Human Resources in IT industry.

RESEARCH METHODOLOGY

The methodology used is as follows:

Tools of collecting Primary Data

Direct Interview Technique is used to collect information from respondents.



Sampling Units

The information was collected from the stakeholders like HR executive and Managers of the software industry in Indore

through the interview process.

Sampling Size

The sample size was 30 professionals from large, medium and small scale software export houses.

Questionnaire Design

Research questions were formulated on basis of literature review. Questions are open ended.

FINDINGS OF STUDY

Findings of study are presented as challenges for HR in IT industry In Indore:

Recruitment Planning

The fresh graduates after gaining experience are hired by the big information technology companies across the country.

That’s why the attrition and turnover ratio is pretty high in the local companies. So recruitment planning is one of the

major challenges faced by hr personnel of software companies in Indore. They always need to be prepared to fill the

gaps left by the experienced and the trained workforce leaving the organization.

Performance Management

Now the challenge is to get the best performance of your employees. The person should be best suited for the job. The

challenge is to create a performance culture where you can provide opportunities for best performance. That’s why the

responsibility of creating a competitive work environment which is also helpful in getting the best out of employees is

the major challenge for the hr personnel.

Training & Development

All though the talent available locally may not be the best but the delivery of the soft wares made has to be world class

that’s why one of the major challenges for the hr in software companies is giving them the best training so that they can

deliver the best results. Hiring the best trainers and the language and communication training in which the client is

based is also a very big challenge faced by the human resource professionals.

Compensation Management

Indore and Central India based companies cannot match the pay scales being provided by the companies in metros like

as Infosys, Wipro etc. In the absence of same retaining workforce is a daunting task. That’s why the major challenge for

the human resource professionals of software companies is to design attractive and competitive compensation packages

keeping in mind the market as well as the financial constraints of the organization.

Attrition & Retention

IT companies have a high degree of attrition because the trained professionals with experience have huge demand in the

market in all the technological areas such Microsoft .Net, Java and the database and networking skills included. The

challenges for companies are to keep this attrition rate minimum. Various companies adopt different techniques to retain

their employees like high pay packets, ESOP, other benefits. So we have to keep this attrition rate as low as possible to

retain super achievers.

Coping with Demand - Supply Gap

Since Indore is a tier III City the best professionals and a large chunk of the workforce is not available to relocate in the

city. So, the major companies have to adjust with the talent locally available. Labor available in Indore are interested in

moving out to big cities for better job prospects. So the human professionals have to cope with the huge gap between

demand and supply of information technology professionals.

SUGGESTIONS

Since the large portion of the work force available is always willing to move out of the city due to better pay packages and the

growth opportunities being offered by the bigger IT hubs in the country the HR professionals in Indore have a challenging task on

hand. They need to design better compensation plans in order to attract the workforce from all across the country. They should

also take special measures too create a work culture where employee grievances are minimum.



They should also assess the training needs according to the work assigned so that the level of performance is always high. Proper

employee grievance handling should be encouraged so that the workforce is always motivated and satisfied.

REFERENCES

1. Yadav, Preeti Naveen, (2010). “Emerging Trends in Human Resource Department”, International Research Journal,

ISSN- 0975-3486, Vol. I, Issue: 11, 64.

2. Som, Ashok, (2008). “Innovative HRM and Coroprate Performance in the Context of Economic Liberalization in

India”, International Journal of Human Resource Management, Vol. 19, No. 7, 1284.

3. Som, Ashok, (2010), "Emerging Human Resource Practices at Aditya Birla Group", Human Resource Management

(Wiley), Vol. 49, Issue 3, 563.

4. Singhal, Arvind, (2004). “The human resource challenges on rediffmail.com”.

5. Mackey, Davc, (2006). “10 HR Trends that are Changing the Face of Business”,

http://www.ceridian.ca/en/news/2005/10trends.pdf page no 21.

6. Buchanan, Kadence, (2006). “Trends In Human Resources”, http://www.webpronews.com/trends-in-human-resources-

2006-10.

7. Sanyal, Rajat, (2011). http://www.mcs-india.net/article-hr-challenges-for-it-industry.htm

8. Gupta, Meenakshi, (2004). http://www.ircc.iitb.ac.in/~webadm/update/archives/Issue1_2004/hr_management.html

9. Karnik, Kiran, (2003). “HR Challenges in the IT Industry”,

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=220

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http://www.ceridian.ca/en/news/2005/10trends.pdf%20page%20no%2021

http://www.webpronews.com/trends-in-human-resources-2006-10

http://www.webpronews.com/trends-in-human-resources-2006-10

http://www.mcs-india.net/article-hr-challenges-for-it-industry.htm

http://www.ircc.iitb.ac.in/~webadm/update/archives/Issue1_2004/hr_management.html

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=220





ORGANIZATIONAL INTERNAL ENVIRONMENT SCANNING –

A PRODUCTIVITY ENRICHMENT PERSPECTIVE

Sumita Vyas3 D. T. Manwani4

ABSTRACT

The competitive organizations of the upcoming era need to have a system of environment scanning, which involves both

external and internal. Environmental scanning is a process of collecting, evaluating, and bestowing data for strategic functions.

This process involves obtaining both realistic and subjective data on the business environments in which an organization

operates or likely to operate. External Scanning comprises of underpinning factors external to the organization, on which

organizations hardly have control. To name few, the external factors could be technological, social, economic, political etc.

While considering internal scanning of the environment, it is the first step of analyzing an organization. It involves taking

stock of current situation inside the organization like infrastructure, employees, resources, technology, culture and so on. On

the other hand, productivity is a systematic concept concerning the conversion of inputs to outputs by the system under

consideration.

To experience enriched productivity; the said factors need to be compared to what is needed to accomplish the strategic goals

in future. This paper attempts to highlight the role of organizational internal environment scanning in enhancing

organization’s productivity.

KEYWORDS

Environment Scanning Significance, Strategic Perspective of Environment scanning, Productivity, Organizational

Internal Environment and Productivity Relationship, Internal Environment Scanning Factors, Organized Scanning,

and Internal Organizational Scanning Checklist etc.

IMPORTANCE OF STUDYING ORGANIZATIONAL ENVIRONMENT

Studying Organizational environment is of ample use for those who are managing the organizations or are likely to do so.

Irrespective of kind of organization one is working, private, public or Government, he needs to understand the organizational

environment, if working on a management position. It helps to view the organizations from different perspective about which they

might not be aware earlier. When we compare our organizational environment with other organizations, we come to know where

we stand. We can predict the present and forthcoming challenges & opportunities which will enable us to guide the right path for

accomplishment of the desired goals.

Many large organizations are generally complex in nature and therefore much attention need to be paid. Any ignorance can bring

losses in long run. Organizations need to be adaptable in the environments they operate and should be responsive to both external

and internal environment.

Gaining informational resources on internal and external environment is vital for organization’s existence and sustainability. The

data collected should further be analyzed which will become the base to formulate strategies and implementing them.

Organizational environment study thus helps in explaining how organizations presently work and what could be the more efficient

way of working. Understanding the improvement areas will enable organizations to get the best out of it.

PRODUCTIVITY

In general terms, productivity is defined as ratio of output to input. As output increases for a particular level of input or as input

decreases for a constant output level, productivity enrichment is achieved. A productivity measurement thus states that how well

an organization has been successful in utilization of its resources to produce maximum output.

Organization productivity is obtained by a large range of factors out of which some can be analyzed quantitatively while some

need qualitative evaluation. While evaluating productivity, it is crucial to completely understand each of the key levers impacting

productivity. Besides, it is also essential to know the relation of these levers with each-other. Change in one aspect can lead to

have impact on other. Hence Effective analysis underpins deeper understanding the role of each aspect on holistic productivity.

Some of the noteworthy organization’s factors which have impact on productivity are mission and vision, operations, strategies,

recruitment policies, structure, policies, commands & reporting, employee motivation, culture, communication transparency,

culture etc.

3Management Faculty and Freelance Corporate Trainer, IIPM, Madhya Pradesh, India, [email protected] 4Senior Professor, Medi-Caps Institute of Technology and Management, Madhya Pradesh, India, [email protected]





Organizational productivity is usually also connected with efficiency and effectiveness. Efficiency deals with maximum output

with minimum resources. Effectiveness deals rates the degree to which an objective is accomplished and how it can be improved

further. Productivity though is easy to measure in industries like manufacturing but may prove to be difficult for service

industries. Hence different approaches are needed to measure productivity in different industries.

Productivity is useful as a relative measure of actual output of production compared to the actual input of resources, measured

across time or against common entities. As output increases for a level of input, or as the amount of input decreases for a constant

level of output, an increase in productivity occurs. Therefore, a "productivity measure" describes how well the resources of an

organization are being used to produce input.

RELATIONSHIP BETWEEN ORGANIZATIONAL ENVIRONMENT AND PRODUCTIVITY

Organizational environment has a large impact on productivity. When we have a look at huge MNCs, their organizational

environment is different and that could be one of the probable reasons for their success.

A poor work environment may deplete the organizational resources, especially human resources. Sometimes everything seems to

be alright from outside, but actual situation might be different. Employees are aggravated for non-completion of work on time for

which several factors are responsible like unclear communication, stress, pressure, over-responsibilities and so on. People look

unhappy and become unhelpful.

The superior-subordinate relationship, employee-employee relationships are not congenial and they seem more of revengeful.

Moreover things do not seem to get smoothen up in near future. Employees are not able to maintain a proper balance between

work and family. If organization is carrying this kind of environment, nobody would willingly like to work there. These

organizations also will then have a big threat of losing their pool of talent.

Organizations, should thus find out an approach which could help establishing a friendly environment which is very much

essential to achieve efficiency in work and further in productivity. Since organization’s environment not only impact productivity,

but also impacts on performance and commitment of employees, organizations need to ensure an environment having values and

ethics which will make an unique image for its competitors and also will make workers feel proud working with the organization.

Organizations should develop such values that its successors can treat it as their ideal and carry forward for productivity

enrichment in future and positive results.

SIGNIFICANCE OF INTERNAL ENVIRONMENT SCANNING

Environmental scan entails factor which impacts the future direction and objective of an organization. It involves both present and

future elements which will affect the organization; as we have to not only ascertain a profitable present, but also a productive

future. Environmental scanning can work as an early warning system for the culture developing and examination of facts.

Strategic planning can be done and implemented on knowing the actuality, based on the examination of facts.

This information can further act as a means of making operational plans and take complete benefit of existing conditions so that

required changes can be done for maximizing revenue of the organization. It will help in predicting the future occurrences which

will lead to right planning at right time. Time and again environment scanning will advance the organization on the way of

efficient productivity and sustained profitability.

However if environmental scanning is over looked, organization will not come to know the indications of changes taken place in

the industry, which will further result in stagnation. Hence, it is utmost essential to be aware of these indications to cope-up with

the latest changes in the organization. In light of above, undoubtedly it could be said that the organizations that are in process of

continuous assessment will certainly rise and will be more advantageous than those who are not.

It offers a foundation of realistic qualitative data which can be effective source of utilization for strategic planners in the

organization. It gives rational spur to strategists for taking the right decisions. It also supports in making a good image of

organization in market that it is receptive and responsive to its environment.

ENVIRONMENTAL SCANNING- A STRATEGIC PERSPECTIVE

The quintessence of strategic leadership is to cope up with an environment portrayed by instability, complexity and haziness. This

applies to all kind of businesses. The challenge to strategists is to position the imminent track to avoid the wastage of valuable

resources and time. It can be dealt through understanding workforce expectations, organizational climate and market tidbits.

Thereafter, introducing the changes on the right track will successfully achieve the strategic actions.

Further, besides analyzing the organization’s climate the strategic position of an organization can also be estimated by having a

view of its top executives who are involved in strategic decision making and other significant activities related to long-term

objectives of the organization. An attempt is required to answer the following questions on:



Strategic Environment

What is your organization dealing with?

Who are the competitors and associates of the organization?

How will the organization define its competitive advantage?

What is the competence level of the organization?

What are the strengths or weaknesses of the organization involved in organization’s current competence?

What steps the organization is taking to overcome the weaknesses involved in its competence?

What kind of resources could have scarcity in future?

What are threats anticipated for organization in long-run?

Organizational Culture

How the top management has adapted the organization culture in response to the environmental changes?

What kind of image organization is carrying for itself and how it is known?

What are the values and ethics of the organization?

Are these values and ethics consistent and how can you say that?

What does the behavior including top management’s behavior speak about the organization’s culture?

What does the way of information sharing speak about organization’s culture?

What kind of image of organization’s culture is portrayed by its infrastructure?

What do the strategic plans speak about organization’s culture?

What do the recruitment policy and other HR policies speak about organization’s culture?

Strategic leadership is a dicey activity. They hardly have clarity. It will often have vagueness and haziness. In light of this

uncertainty, decision-making should be based on logical postulations. If not, risks could be exponential, especially in case of

scarce resources. The other factor to be taken care in this issue is also of opportunity cost. The other better opportunity should not

be lost in doing efforts for one opportunity.

Moreover, the impact of strategic decisions needs to be predicted both internally and externally, otherwise they could be

associated with irrecoverable resources in long-term. In planning a strategy, an organization should look for maximizing

advantages from opportunities and reducing the threats.

ORGANIZATIONAL INTERNAL SCANNING- BEGINNING

Organization cannot scan each and every factor for scanning. It is necessary for strategists to list out the factors which are more

vital for organization’s existence and its success.

It could be begun with the precedent trends like sales, expenditure and revenue generation. These are the most important factors to

be considered for internal environment scanning. While stating about sales, the scanning should be based on approach to sales.

The framework of precedent sales approach needs to be broken down according to various products and services range. It would

give a clear picture as which approach was profitable and which proved non-profitable. Learning from the past, a modified

approach should then be developed may be customer wise, location wise, distribution wise, marketing wise and so on, which

seem to generate more revenue in future.

While coming to cost and revenue generation, it needs a minute and detailed scanning. Productivity, operating expenditure and

deployment has a significant greater impact on profitability since these factors impact profit on daily basis. The other factors like

revenue from resale, interest or competent purchase prices have lesser impact on profitability, since these events do not occur on

every day basis.

Organization’s environment scanning aims at cost effectiveness as well. To be cost-effective, organizations need to keep the cost

of sales like raw materials, labor etc. low and the value of sales high subject to the highest matching price in the market which

will sustain the product. Besides cost of premises, amenities and compensation for operations staff also need to be within the

limits.

A STEP FURTHER TO ACHIEVEMENT OF INTERNAL ENVIRONMENT SCANNING

To be competent and successful, an organization needs to have following elements:

Careful Planning and implementation of efficient and effective strategies.

Strategies planned should be consistent with competitive industrial trends.

Strategies should be made on the basis of true picture of organization’s internal sources and competencies.



Internal scanning is not that easy. Consequently it brings a realistic image of the organization, no matter a good or bad one. The

correct approach to scanning is when it is able to furnish the actual status of the organization and developing the right strategies

for further improvement. Organizational internal scanning must analyze the strengths, weaknesses, opportunities and threats lying

on its way to productivity and profitability. On the basis of this analysis, future strategies should be developed.

To achieve internal organizational scanning, first of all significant internal elements like its mission, structure, culture, values,

assets, infrastructure, technological competence, marketing resources, financial stability need to be identified and then their

evaluation need to be done.

IMPORTANCE OF ORGANIZED SCANNING

For an efficient strategy formulation, the internal scanning in an organized way is extremely essential. It is applicable to both

small and large firms. However, it is more required in small firms, in view of limited opportunities and scarcity of resources.

Organizations while doing the internal environment scanning need to ask some questions in perspective of productivity

improvement:

About the Organization

Research and Investigation: Has the organization done any research on the contemporary products and investigated the

findings to match with organization’s best fit?

Rational Investment: Is there any separate fund for research and investigation, expenses on introducing new strategies,

and other similar requirements?

Production Risks: If it is a manufacturing organization, is it aware about the risks, if any, related to production?

Product Uniqueness and novelty: Is the company’s product unique and have novelty?

About Employees

Work Environment: Do the employees find their work environment congenial yet challenging?

Employee Skills Usage: Are the employees skills optimally utilized?

Employee Competency: Are the employees competent enough to handle day to day operations efficiently, or need some

training?

Employee Satisfaction: Are the employees satisfied with their compensation, profile and efforts recognition?

INTERNAL ENVIRONMENTAL FACTORS SCANNING CHECKLIST

Organization should conduct a SWOT analysis taking into consideration the following internal factors:

1. One can find data for internal environment scanning through various sources available in the organization like

organization’s website, Data with various departments like HR, Finance, Production, Marketing and so on. However, it

should be ascertained that information obtained should be relevant and giving a true picture.

2. Check for the capabilities of current employees like their qualifications, interpersonal skills, innovativeness, and other

aptitude for efficient productivity.

3. Check the age-group of top positions in the company and if they are soon going to be over-aged, then the suitable

replacement should already be in process of taking over the position.

4. The other issue to be taken care is demographic characteristics of employees like their age, sex, caste, creed etc. This

will give a clear picture of workforce diversity and areas of improvement.

5. Evaluate the internal environment by checking the staff contentment status. Are they proud to work with the

organization? Are they satisfied with the job profile and package? Do they have the feeling of belongingness? Are the

relationships between fellow-workers are congenial? Are they over-stressed or under-stressed? And so on…. The

answers to these questions will help the organization understand that what kind of change needs to be implemented.

This evaluation can be done through surveying a instrument on Employee Satisfaction and results can accordingly be

seen. Assessment of job satisfaction can be done through various instruments like Minnesota Satisfaction Questionnaire,

Job Description Index, Job in General scale etc.

6. Also keep a track on employee turnover. If this is unusually high, then it could be an alarming stage. It indicates

something is severely going wrong inside the organization. It may result in loss of talent and could also have an indirect

financial impact on the company. To find out the reasons behind the turnover, exit interviews should be conducted since

employees may directly not tell the reasons of leaving due to several inhibitions.



7. Evaluate whether any changes are required in top management, if an ineffective leadership is apparent in the

organization.

8. Situation inside the organization can vary from organization to organization. Hence, besides above, what other elements

needed to be scanned can be better understood by the organizations itself. Internal environment scanning can be

modified accordingly as per the organization.

9. Last but not the least, before making any changes in the existing condition, its future impact should be certainly ensured

to avoid any complications.

CONCLUSIONS

As conferred above businesses operate in two kinds of environments: internal and external. Each has a different purpose in the

organization with potential impact on employees and organization’s productivity. By scanning the organizational environment, we

can discover those factors which are hindering in efficient performance of organization.

Environmental scanning should be integrated into businesses as usual activity rather than periodic, if the organizations want to

sustain and maintain a competitive position in today’s challenging environment. To recap, environmental scanning starts with

internal and external collection of information to analyze organization’s performance and predict future stature.

As this paper has emphasized on internal environmental scanning, its role in employee development cannot be ignored. The best

part of it is that the internal factors are in control of the organization.

Some of the significant internal factors are organization’s culture, Change Management, Group Behavior, Employees behavior

and organizational values which are crucial in employee development on a right track. The other important aspects of internal

environment scanning are scanning of operations efficiency, quality of recruitment and financial position.

In light of above, productivity is one of various key factors for the basis of consideration of any organization. On the other hand, a

deeper understanding of organizational environment, the blockages on the way of productivity can be eliminated. This can indeed

be achieved, if organizations endeavor to develop an environment where state of the art technology and infrastructure is

introduced with proper attention to employees needs including the minute ones.

However, after the process of environmental scanning if any changes are required to introduce, organizations should ensure its

long-term impact, since changes in present situation may call for lot of complications like employees resistance to change,

adverse impact on productivity etc. However, if changes are for good, management should definitely go for change with a way out

to overcome the barriers on the path of change.

REFERENCES

1. Achieve Productivity. (n.d.). Retrieved April 10, 2012, from www.newproductivity.org:

http://www.newproductivity.org/productivity_improvement.html

2. CPS Human Resources Service. (n.d.). Retrieved April 5, 2012, from www.cps.ca.gov:

www.cps.ca.gov/workforceplanning/.../WorksheetEnvScan.doc

3. Ehinmoro, A. (n.d.). Is Your Organization Doing a Good Job of Scanning its External Environment? Retrieved March

30, 2012, from yahoo.com: http://voices.yahoo.com/is-organization-doing-good-job-5830386.html

4. George S. Patton, J. (n.d.). Strategic Leadership and Decision Making Part Five: Analyzing Organizations. Retrieved

March 31, 2012, from http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt5ch20.html

5. Georges, R. (n.d.). The importance of Environmental Scanning in Business & ICT Environments. Retrieved March 30,

2012, from Ehow: http://www.ehow.com/facts_7879244_importance-scanning-business-ict-environments.html

6. Mrinal. (2007, March). People Development. Retrieved April 9, 2012, from www.citehr.com:

http://www.citehr.com/35243-people-development.html#ixzz1r9Mbtuj3

7. Shaklee Business Opportunity. (n.d.). Retrieved April 4, 2012, from www.omniglot.com:

http://www.omniglot.com/info-articles/burlineton/shaklee_business_opportunity.html

*****

http://www.newproductivity.org/

http://www.newproductivity.org/productivity_improvement.html

http://www.cps.ca.gov/

http://www.cps.ca.gov/workforceplanning/.../WorksheetEnvScan.doc

http://voices.yahoo.com/is-organization-doing-good-job-5830386.html

http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt5ch20.html

http://www.ehow.com/facts_7879244_importance-scanning-business-ict-environments.html

http://www.citehr.com/

http://www.citehr.com/35243-people-development.html#ixzz1r9Mbtuj3

http://www.omniglot.com/

http://www.omniglot.com/info-articles/burlineton/shaklee_business_opportunity.html



THE ROLE OF COUNSELLING AND SOFT SKILLS TRAINING IN ENHANCING

LEADERSHIP BEHAVIOUR OF MANAGEMENT STUDENTS

Vijendra Kumar S. K.5 Sadhana Deshmukh6

ABSTRACT

Leader and leadership skills have gained lot of importance in last few decades. If one has good leadership qualities then the

chances of being successful are more. Therefore the management schools who are offering the leadership behavior

development training programmes cater to the needs of the industry .Such programmes are framed from the point of view of

the demand from the industry and the feasibility of conducting such programmes in the given stipulated time.

The present paper elicits the findings of a study conducted to see the effect of leadership behavior development programme on

the MBA students. Students, who were pursuing first semester M.B.A., were involved in the present study. They took the

Cattell’s (1991) 16PF test as part of their initial assessment of personality that in turn helped them to understand their

personality and its dynamics.

The analysis of profiles revealed that there were 33 students who scored low in leadership category and 50 students scored

high in leadership category. All students underwent psychological counseling as well as soft skills training programme in their

later semesters (second and third). They were assessed again in the end of the third semester on leadership behavior through

tailor made rating system and mock group discussions.

The results show that counseling and soft skills played a significant role in their improvement of leadership behavior.

KEYWORDS

Group Discussion, Leadership skills, Leadership Behavior Training, Management Education, and 16 PF etc.

INTRODUCTION

Leader and leadership skills are probably most talked about words in the seminars, conferences and corporate world of the 21st

century. The books and magazines, which focus on these topics, were sold like hot cakes. Business institutions and colleges have

used these words like magic wand to attract more students. This craze made every management student to dream about becoming

a leader, where he could transform the organization.

This trend is praiseworthy and good. This will help the students to improve their leadership skills and it will intern help them to be

a good manager. As Leventhal (1999) pointed out: “Students with leadership skills are likelier to be involved in community

affairs and organizations, are better able to establish contacts with employers and see a raise in their poise and confidence”. Even

though Leventhal was general in his argument, it is true for management students as well.

According to Kotter (1999), managers must know how to lead as well as manage. According to him if the organizations are not

led and managed well they face the threat from the competitors. Leadership skills and management skills can be separated from

each other by saying that, management is more formal and scientific than leadership. Leadership involves having a vision of what

the organization can become. Leadership requires cooperation and teamwork from a large network of people. The common factor

of all leaders is the ability to inspire and motivate people to achieve the personal and organizational goals. The main point about

the leadership is that it is not only required at a top level but is needed at all level.

Therefore the management schools offering leadership grooming programmes cater to the needs of the industry and frame the

programmes according to the demand of the industry. Some of the better known techniques that can bring about this change are

mentoring (Schlee, 2000), counseling and coaching. However, the recent research on leadership development programme for

students found that students showed a preference for developmental activities where the primary learning objective was personal

growth and skill building. Students also had a preference for personalized developmental opportunities over activities designed for

general group-oriented development (Allen& Hartman, 2009).

Typically such programs include both management and leadership skills. For example being innovative is the leader’s quality but

being analytical is the quality required by the manager. The leadership skills programme would cover the good blend of both

skills in order to groom the participants effectively.

5Assistant Professor (Counselling & Guidance), Department of Science & Humanities, PES Institute of Technology, Karnataka,

India, [email protected] 6Professor, ICFAI Business School, Karnataka, India, [email protected]





Focusing On Leadership Skills Training

Trait approach on leadership development focuses on the honing of those particular traits, which enhance leadership skills and

behavior. The study using meta-analysis research indicates that there is a significant relation between some personality traits and

leadership perception (Lord, de Vader &Alliger, 1986).The recent study using a five factor model on the relation between

personality trait and leadership shows that there is a strong correlation between the two (Judge, Bono, Ilies & Gerhardt, 2002).

Butler and Forbes (2008) examined the impact of a skills based course on leadership coaching. Their survey supported the

preposition that a course in coaching leadership was an effective way to present and develop leadership skills among MBA and

other graduate students. Some of the other studies focused on leadership development programme at higher education are by

Binard and Brungardt (1997) and Zimmerman-Oster and Burkhardt (1999).

Leadership traits and 16PF test

Leadership traits can be assessed in Cattell’s 16PF test. In this standardized personality test, leadership trait is not part of primary

traits. They are known as composite scores or second-order factors and have special interpretive meaning. The present paper uses

the norms and criteria of leadership scores revised by IPAT (1991).The primary factors are involved in leadership composite scale

scores. They are: Factor B (Concrete thinking/Abstract thinking), C (Affected by feelings / emotionally stable), E (Submissive /

Dominant), F (Sober / Enthusiastic), G (Expedient / Conscientious), H (Shy / Bold), I (Tender minded / Tough minded), M

(Practical / Imaginative), N (Forthright / Shrewd), O (Self-assured / Apprehensive), Q3 (Undisciplined self-conflict / Following

self-image) and Q4 (Relaxed / Tense). These factors are used in different proportions to get the composite leadership scores. This

test interpretation is significant because twelve of sixteen primary factors are contributing in the overall composite scale of

leadership factor scores.

According to the administrators manual of the 16PF test (IPAT, 1991), behavioral traits of candidates, who score high in

leadership factors are: Sociable, relaxed, assertive and self-assured. Overall, they would have the emotional maturity needed to

resolve conflicts while maintaining an emphasis on getting things done. However, low scorers usually are not good at asserting

themselves. Also they tend to shy away from conflict, and may also lack the self-control needed to meet deadlines and group

productivity (pp. 38).

OBJECTIVES OFSTUDY

The reviewing of literature pertaining to the role of counselling and soft skills is abysmal. The available research studies do not

focus on the role of these programmes on the leadership development of management students.

However, our previous experience with the same training method showed that these leadership development programmes have a

significant impact on the students’ leadership behavior. This led us to verify the influence of these training methods through an

empirical analysis. Keeping these perspectives in mind following objectives was derived:

1. To explain the role of counseling and soft skills training on the leadership behavior of students, who are categorized on

the basis of 16PF profile?

2. To understand the homogeneity of different assessment techniques in evaluating the leadership behavior after the

intervention.

HYPOTHESES OF STUDY

Management education is primarily about preparing students to become future leaders. It has been done through imparting

necessary leadership skills to students, who are in need of it. In this context, in the present study, students, who have scored low in

leadership factors supposed to be at par with students of high scoring in the same leadership factor after undergoing 16PF

feedback counseling and follow up sessions as well as necessary soft skills training sessions on leadership development.

Therefore the null hypothesis in this regard is:

H01: There is no difference in the means of scores between students of low and high category on leadership factors, on evaluation

of leadership behavior assessment through different techniques, after interventions.

Leadership behavior evaluation is complex and multi-faceted. This is more difficult, especially if there is a need to observe and

evaluate leadership behavior in the actual context like placement and recruitment seasons in campuses and corporate. However,

the need is to use a method or technique to be as homogeneous as possible, which can predict the similar leadership behavior

among different categories. This leads to the second hypothesis of the present study:

H02: There are no differences between different assessment techniques in evaluating the leadership behavior between high and

low categories of leadership factor.




The paper focuses on the process of evaluating the leadership behavior, which has been observed/ perceived by teaching faculties.

However, the importance was given to avoid biases and understand the leadership behavior from various contexts and elicited this

behavior.

Research Design

Evaluation of leadership behavior has been done in three ways. First one is observation of leadership behavior during soft skills

training, second one is observation of leadership behavior during mock group discussion sessions and last one is faculty’s

observation/perception scale. Evaluation has been carried over in such a way that there was no hint to differentiate on their past

leadership factor scores. This allows us to use three independent variables namely internal marks of soft skills sessions, mock

group discussion scores and faculty perception to predict the dependent variable leadership behavior.

Two-way ANOVA has been used to analyze the differences in the leadership scores of high and low category scorers as well as

on different assessments based on of pre tested high and low category of leadership factors. A subsequent post-hoc measure also

has been carried out to interpret the findings.

Sampling Design

Students, who were pursuing Maters of Business Administration, were involved in the present study. This sample comprises 498

students of both the gender. They had undergone 16PF test as part of their initial assessment of personality, which is to help them

to understand their personality and its dynamics.

The analysis of profiles revealed that there were 33 students, who have scored low in leadership category (sten score is below 3)

and students who scored high in leadership category was 50 (sten score of 8 and above). For the convenience of analysis, final

sample size is considered of 33 students in both the categories and used in the analysis. Low category[X] consists of 15 females

and 18 males, high category[Y] consists of 17 females and 16 males. However, demographic variables analysis is not considered

in the present analysis.

Instruments

The study is based on analysis of four different assessments used in understanding the student’s behavior. They are explained in

detail below:

16PF

Cattell’s (1989) 16PF personality test has been used in the initial assessment.

Internal Evaluation during Soft Skills Classes

In this assessment, students’ evaluation on leadership skills/behavior has been obtained from the evaluation during the

soft skills classes. The rating has been similar to mock group discussion evaluation.

Mock Group Discussion Evaluation

Group discussion technique has been used extensively in assessing student’s competency as a future manager/ leader in

the corporate sector. Many companies use group discussion as an initial criterion for selection and expect students to

show leadership behavior. The rating is ranging from 1-10 in an ascending order (low to high) of leadership

skills/behavior, which was observed in the actual mock group discussion sessions.

Faculty Perception Scale

This scale has four questions. Three questions are based on interpretation of leadership factors of Cattell’s 16PF test and

one question is asking directly about students general leadership skills/behavior observed by the faculty either in the

class room or social environment. The assumption behind the development of this scale is that the leadership behavior is

quite complex and multifaceted. The faculties are capable of perceiving this leadership behavior in students better in an

unrestricted environment than in other restricted settings like group discussion or interview sessions. The scale has a

rating ranging from 1-10, where 1 is low in leadership skills/behavior and 10 is high.

Only full time regular faculties were used in getting the feedback about the students. They were given 10 days for

assessment and asked to maintain the confidentiality. However, they were free to use any methods to know the students

present leadership behavior except the actual leadership category a student belonged in the initial 16PF test or through

finding it from the academic documents. The scale has not been tested for reliability and validity. However, experts’

opinions were solicited in developing the questions. Interpretation of the rating has been considered in the same way as

16PF test’s sten scores.



Procedure

16PF test was administered to first semester students and profile feedback was given to all the students’ one-on-one basis by

counselors. During this feedback time, special emphasis was given to students who scored low in leadership factors and were

suggested to come for follow up sessions. Holistic psychological counseling approach was used in counseling students to develop

their personality.

Internal evaluation of soft skills, mock group discussion evaluation rating and faculty perception scale have been carried out in the

third semester programme. Before this assessment, it was made sure all the students have gone through complete counseling as

well as soft skills sessions. The approximate time duration between 16PF administration and other assessment was one year.

Faculty perception scale was given to selected faculty, who full fill the criteria of having good enough interaction with the

students and only low and high category leadership factor students were assessed.

RESULTS AND DISCUSSIONS

In this section we have presented the tables and discussed the results in detail.

Table-1: Mean, Standard Deviation and Standard Error of Students’ Evaluation on Three Parameters (n=33)

Categories* Mean Standard Deviation Standard Error

GDLDINT- Low[X] 6.437 1.776 0.314

GDLDINT-High[Y] 5.718 2.113 0.373

GDLDXT- Low[X] 5.562 1.966 0.347

GDLDXT- High[Y] 5.218 1.896 0.335

FPS- Low[X] 6.651 1.501 0.265

FPS- High[Y] 7.184 1.176 0.208

Source: Authors.

Note: - GDLDINT: Internal evaluation scores of students leadership skills observed in soft skills training. GDLDEXT: Leadership

rating score on mock group discussion; FPS: Faculty perception scale; [X] is a leadership category of students, who scored low in

the 16PF prior to intervention; [Y] is a leadership category of students, who scored high in the 16PF test prior to intervention.

Table-2: Analysis of Variance (2-Way) of the Data on Assessment of Students Leadership Behavior on All Three

Parameters and Two Category of Leadership Factors

Sum of Variation Df SS MS F Interpretation

Between rows [X&Y] 1 1.65155 1.65155 0.529331 Not sign

Between Assessments 2 83.92487 41.96244 13.44919 Significant*

interaction 2 14.73246 7.366232 2.360917 Not sign

Within (Error) 192 599.0539 3.120072

*Note: F.05 (2,192) =3.05, p<.05

Source: Authors.

Table-3: Fisher’s Least Significant Difference Between Assessments and Effect Size: Cohen’s

^

d

Assessment Techniques t* ^

d

GDLDEXT and GDLDINT 2.562 0.446

FPS and GDLDEXT 5.186 0.902

FPS and GDLDINT 2.623 0.456

*Note: t (192) =1.970, p<.05

Source: Authors.

As discussed in the previous section, leadership behavior is complex and multifaceted. Narrowing down on assessing this

behavior may lead to unfair evaluation. Keeping these assumptions in mind, the presented results can be interpreted as follows:

Analysis of variance in Table 2 shows that obtained F value (between rows) between two categories of leadership factors- high

and low (X and Y) is less than 1. This indicates that there is no difference between means of these two categories of leadership

factors and null hypothesis can be accepted. Nonetheless, this will indicate that 16PF test feedback and followed up counseling

and related soft skills training has adequately helped the students, who scored low in leadership factors in the first semester and

made them to be evaluated as high scorers in leadership behavior after a year later.



Among different assessment techniques used to evaluate the leadership behavior, the ANOVA table shows that obtained F value

is significant (F.05 (2,192) =3.05, p<.05). This indicates that there are significant differences between all these assessment

techniques (Table 3) due to contextual differences in the evaluation mode and shows complexity of assessing leadership behavior.

However, this difference is quite large between faculty perception scale and evaluation of mock group discussion leadership

scores (difference is approximately 0.9 standard deviation). Table 2 also shows that there is no interaction between these variables

as predicted and related null hypothesis can be accepted.

The present research has to be carried out in future through administering 16PF test on both the occasions and correlating with

other type of evaluation of leadership behavior of students studying in post graduate management education.

CONCLUSIONS

The present paper, even though based on ex post facto research design, has lot of implications. It tried to measure the role of

leadership skills/behavior from different perspective. Using the same test on post intervention assessment would have been valid

tool to understand and analyze the differences.

However, the present study uses different perspective in assessing the post intervention leadership skills. It focuses on the

observation of student’s actual leadership behavior in a mock setting and also uses faculty’s perception about these students

present leadership behavior in a larger context including classroom and social settings.

The presented data provides us to have confidence in the role of counseling and soft skills training on improving the leadership

skills of students, who were once, assessed as low in leadership factors. However, the data also prompts us to reflect on evaluating

the leadership behavior using different mode of assessment and integrating that to get a holistic view of improvement in students’

leadership skills.

REFERENCES

1. Leventhal, I. J., (1999). “Providing Leadership Development for All Students: An Integral Part of Classroom

Instruction”, Tech Directions, 22-24.

2. Kotter, J. P., (1999). “What Leaders Really D”, Harvard: Harvard Business Review Book (Original: 1947).

3. Schlee, R., (2000). “Mentoring and the Professional Development Business Students”, Journal of Management

Education, 24 (3), 322-337.

4. Allen, S. J., and Hartman, N. S., (2009). “Sources of Learning in Student Leadership Development Programming”,

Journal of Leadership Studies, Vol. 3 (3), 6-16.

5. Lord, R. G.; de Vader, C. L., and Alliger, G. M. (1986). “A Meta - Analysis of the Relation between Personality Traits

and Leadership Perceptions: An Application of Validity Generalization Procedures”, Journal of Applied Psychology,

Vol. 71 (3), 402-410.

6. Judge, T. A.; Bono, J. E.; Ilies, R., and Gerhardt, M. W., (2002). “Personality and Leadership: A Qualitative and

Quantitative Review”, Journal of Applied Psychology, Vol 87 (4), 765-780.

7. Butler, D., and Forbes, B., (2008). “Examination of A Skills-Based Leadership Coaching Course In An MBA Program”,

Journal of Education for Business, 227-232.

8. Binard, K., and Brungardt, C., (1997). “Learning Leadership: Assessing Students at the Community College of

Denver”, Journal of Leadership & Organisational Studies, Vol 4 (4), 128-140.

9. Zimmerman - Oster, K., and Burkhardt, J. C., (1999). “Leadership in the Making: A Comprehensive Examination of the

Impact of Leadership development Programmes On Students”, Journal of Leadership & Organisational Studies, Vol. 6

(3-4), 50-66.

10. IPAT (1991), Administrator’s manual for the 16PF. Champaign, Illinois: Institute of Personality and Ability Testing,

Inc.

11. Cattell, H. B., (1989), “The 16PF: Personality in Depth”, Champaign. Illinois: IPAT.

*****



STUDY OF DIFFERENT METHODS OF REDUCING ABSENTEEISM

IN THE IMPLEMENTATION OF BUSINESS PROCESS RE-ENGINEERING IN

MANUFACTURING COMPANIES

Dipali Biswas7 Aditi Kale 8

ABSTRACT

Absenteeism has become a vogue in the industries today. The phenomenon of absenteeism is almost universal, though its

incidence and magnitude is very high in Indian Industrial Organizations, where its frequency is often a great handicap, both to

employees and the management. When an employee becomes absent, he makes the machine idle or keeps the work space

unoccupied and consequently, it directly or indirectly reduces the amount of production. The loss in production is the loss of

community at large.

The HR department is at a loss of how to cope with this problem that is reducing the absenteeism level of employees in

organizations. Keeping this in view, the researchers have come up with their paper, “Study of Different Methods of Reducing

Absenteeism in the Implementation of Business Process Re-engineering in manufacturing companies.” The paper examines

the different methods of reducing absenteeism while implementing Business Process Re-engineering (BPR), in manufacturing

companies in Pune region, Maharashtra. It was found that ‘Two- Way communication and prompt redressal of grievances

helps in the reduction of absenteeism to quite some extent as compared with other methods.

KEYWORDS

Business Process Re-Engineering, Absenteeism, Manufacturing Companies, and Different Methods of Reducing

Absenteeism etc.

INTRODUCTION

As early as in 1946, the Labour Investigation Committee pointed out that loss due to absenteeism is twofold. Firstly, there is a

distinct loss to workers, because the irregularity in attendance reduces their income, when “no work no pay” is the general rule.

The loss to employer is still greater as both discipline and efficiency suffer.

Moreover, either an additional complement has to be maintained throughout the year to meet this emergency or the industries

have to depend solely on the workers who present themselves at the gate and who are generally not upto the mark. But, the

maintenance of an extra complement of workers leads to serious complications and evils. For example, it provides a justification

to the employer to provide sufficient work to the substitute workers and force some of the existing workers to take compulsory

leave. This was happening in some of the industrial centers. But, this has been resented by the workers who feel that the

employers maintain extra labor and force the workers to take compulsory leave, etc.

On the other hand, employers argue that they have no option but to maintain extra labor, in view of high rate of absenteeism

among the workers. Thus, absenteeism adversely affects both the employers and the workers, and gives rise to many industrial

labor and social problems. It also reflects the attitude of the workers towards industry. It affects Industrial Relations adversely.”

Very few industrial concerns collect figures on “absenteeism and even do not appear to have been based upon any standard

definitions of absenteeism. Data on turnover were also not reliable. The difficulty in the past has been that no such definitions

have been uniformly suggested. Therefore, the precise position in regard to the loss in efficiency on this score could not be

ascertained. The position does not seem to be very satisfactory even now. However, the Government of India and the State

Government have made efforts to calculate the rate of absenteeism and labour turnover in recent years in different industries.

CONCEPTS OF ABSENTEEISM

Various Definitions and Analysis

The term absenteeism has been defined by Shri J.D. Hackett as the “temporary cessation of work, for not less than one whole

working day, on the initiative of the worker, when his presence is expected.” The above lines mean that the worker stops working

for a day, willingly, and does not go to the work-place, where his presence is required.

Prof. Ankalikr defined absenteeism as “unauthorized absence of the worker from his job.”

What can be interpreted from this line is- the worker abstains from work-place without getting permission from the authorities

concerned.

7Assistant Professor, Sinhgad Institute of Management & Computer Applications, Maharashtra, India, [email protected] 8Assistant Professor, Sinhgad Institute of Management & Computer Applications, Maharashtra, India, [email protected]



Prof. K.G. Fenelon defined it as the “absence of the worker when work is available.”

Here again it could be interpreted as – the worker does not go to the work-place when there is work waiting for him to do so.

In India, data on absenteeism are collected and compiled by two agencies, namely, the Labour Bureau of Simla, and the Annual

Survey of Industries (ASI). Both agencies define absenteeism as “the failure of a worker to report for work when he is scheduled

to work. “ However, they differ in the interpretation of the term “ scheduled to work” The Labour Bureau does not regard spells of

absences from work due to authorized vacation and privilege leave, strikes, lock-out, and lay-off, and of ex post facto regularized

period of overstay following authorized leave, as falling within the scope of the term “ scheduled to work”. It considers a worker

as scheduled to work when he is granted leave due to accident, or sickness, or casual work. A worker who stops coming to work

without notice is also considered absent till removed from the pay-roll. The worker is taken to be a person who is a “regular”

employee, and is not a badli or a casual.

The ASI interpretation of the definition is wider than that of the Labour Bureau in the sense that it considers all kinds of vacations

and overstays as periods when the worker is scheduled to work.

The choice of definition is determined by the purpose of the study. The Labour Bureau is interested in the extent of total time lost

due to human factor as a percentage of the total time scheduled to work. The ASI wants to know the cost of time lost as a

percentage of the total labour costs. Therefore the two definitions serve their purposes.

The purpose of this study is to understand the problem of absenteeism and help reduce it as much as possible in order to avoid

dislocation of work and loss of production while implementing Business Process Re-engineering (BPR). It is here that the HR

department steps in. Before implementing BPR, let’s see what BPR is all about.

Whilst BPR is a relatively new overall concept, already various practitioners and commentators have created their own

definitions. To start, the definition given by Hammer & Champy (1993), who have perhaps done the most to popularise the

concept within the ranks of western management, is given:

"Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in

critical, contemporary measures of performance, such as cost, quality, service, and speed".

(Hammer & Champy, 1993, p32)

Hammer & Champy's definition, and indeed their whole book, emphasises new single processes handling all the activities in order

to meet customer needs. Hammer & Champy use an analogy of a "clean sheet of paper" to highlight the "rethinking" and starting

afresh aspects of BPR.

Obeng and Crainer also emphasise this starting anew concept. They define BPR as:

"It's about changing anything which provides a block to improving today's business performance, even if it means going back to

the drawing board." (their emphasis).

(Obeng and Crainer, 1994, p20) They regard BPR as just common sense but highlight a number of hurdles that must be overcome

in-order to implement it. In their "Rules for the Revolution" (p74) they talk of discarding yesterday's thinking and yesterday's

solutions for today's goals.

Johansson et al define BPR by relating it to some other contemporary initiatives:

"Business Processing Reengineering (BPR), although a close relative [of JIT & TQM], seeks radical rather than merely

continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core

competence of the organization, BPR concentrates on core business processes, and used the specific techniques within JIT and

TQM 'toolboxes' as enablers, while broadcasting the process vision."

(Johansson et al, 1993, p6)

These writers analogy is of "breaking the china" and "then putting the pieces back together again in a new way" (p6). Their

emphasis is very much an operations approach with all other functions, including those "upstream and/or downstream" with

customers or suppliers, merged into one integrated operation, so that "a sense of inescapability and/or symbiosis is generated"

(p7).

Davenport prefers the term "business process innovation": "Reengineering is only part of what is necessary in the radical change

of processes; it refers explicitly to the design of the new process. The term process innovation encompasses the envisioning of

new work strategies, the actual process design activity, and the implementation of the change in all its complex technological,

human, and organizational dimensions."

(Davenport, 1993, p2) He also has an operations leaning especially using IT for completely new ways of undertaking business,

different not only to the organization but to the industry.

Andrews & Stalick highlight the importance of the organisational integration aspects of BPR, defining it as:"radically changing

how people work - changing business policies and controls, systems and technology, organizational relationships and business

practices, and reward programs".

(Andrews & Stalick, 1994, p xiii) They too emphasise destroying "old ways of thinking and operating", and the "key role" of

information technology (p xiii).



These definitions, from some of the pioneer writers and practitioners, are sufficient to pick out the common threads. One key

aspect of BPR is that it defines completely new and radical ways of how an organisation undertakes its activities. Often they are

innovative. Because these new ways cut right across an organization, and even outside it, affecting all parts they are seen as

revolutionary. BPR is at a high level within an organization and driven by external and strategic demands. It should be

differentiated from process improvements, which is defined as incremental changes to existing processes. Successful

implementations of BPR bring order of magnitude improvements in business benefits.

Having known the concept of BPR, it’s up to the HR department to implement it to bring in a sea change by adopting the different

methods of reducing absenteeism.

Reduced Absenteeism

When the work atmosphere is not amicable or working condition is poor, the employees abstain from coming to their work. Thus

absenteeism is controlled by the different measures in companies implementing BPR. The different ways are: by having

Congenial work environment; by Training & counseling; by Employee welfare and by Two way communication & prompt

redressal of grievances. Hence it becomes pertinent to work on this paper.


Employee absenteeism is a costly personnel problem that has concerned employers and attracted researchers. Absenteeism is

universal. Studies show consistent patterns of absence behavior across organizations of various sizes, industries and in different

regions of the country. Hence reducing absenteeism of employees by using different methods becomes pertinent for the HR

department while implementing BPR in manufacturing companies.

The following are the research papers, articles, journals and books reviewed by the researchers:

Dr. B.R. Tyagi, in his paper, “Absenteeism and Labor Turnover,” states that it is very important to reduce the rate of absenteeism

and labor turnover for increasing industrial production, as the production of an industry largely depends upon the efficiency and

experience of its workers. Hence, the extent to which absenteeism and labor turnover is reduced, the success of an industry is

assured. Besides, the workers organizations should be also encouraged to maintain contact with the workers and redress their

grievances. This may also develop good relations between the employers and the workers, that is, two way communication.

Baldev and Sharma have found in their research in automobile plant in Bombay that rural exodus of workers and involvement of

Trade Union is the major reasons of absenteeism.

Bhatia S. K. and Valetid G.K. in their study, “An empirical study of factors associated with absenteeism” conclude that longer

distance from factory is the main cause to create the chronic absentees.

Morris David examined in his study, “Seasonal fluctuations in absenteeism” stated that the reasons of absenteeism are associated

with social causes, and migratory character as well as the rural exudes of the workers.

Angus Hone reveals in his article “ High absenteeism and high commitment”, that values and norms which evolve among the

workers as a result of development in technology work and leisure , are now cherished for by the workers, and these they want to

enjoy along with monetary benefits by way for his services. Economic consideration, therefore, decides whether one would like to

be absent or not from work.

K. N. Vaid in his paper “Work behavior and Work attitude” conducted the survey of 12years experienced workers and identified

chronic absentees, and regular workers. The survey shows that those who are in chronic absenteeism group give importance to

agreeable work group, helpful supervisor, reputed company, opportunity for advancement and labor welfare services; while those

who were regular gave importance to clean and safety environment and agreeable workgroup, bonus, manageable workload,

reputed company and helpful supervisor. None of the group gave importance to wages, job security, and company house. As a

whole all the workers agree that they need the helpful supervisor, workable group and seem happy with the fringe benefits. The

points where absentee workers stress is the grievances are not redressed, they feel that the committees are only set to show and do

not work. They were least bothered about the company’s products, production process. All this shows that two way

communication between workers and managers must be very strong which will make workers feel about the company give

ownership of the effects to the workers, which will naturally help in reducing the absenteeism.

In the book titled “Business Process Reengineering: An Introductory Guide” by Peter Carter, the author states that Business

process reengineering (often referred to by the acronym BPR) is the main way in which organizations become more efficient and

modernize. Business process reengineering transforms an organization in ways that directly affect performance.

The authors, V. S. Lai; R. K. Mahapatra, in their research paper, “Correlating business process re-engineering with the

information systems department” deal with the role of an information systems department in the success of business process re-

engineering projects was empirically investigated. Structured interviews with 27 executives were initially conducted to identify

critical information systems department roles in business process re-engineering. These roles were then empirically validated

using survey research method to determine their extent of impact on business process re-engineering success.



The results of hierarchical regression analysis show that support of top information system management, the existence of

technology champion, the management of resistance to change, the quality of information system planning, the integration of an

information system-business strategy, the sophistication of user's computer skill and the extent of integration of the information

architecture are the most critical information systems department roles in business process re-engineering success.

What Is Business Process Reengineering? And What Can It Do For Your Business? published in 1888articles.com explains:

Business process reengineering and considers it as a main way in which organizations become more modern and efficient. It is a

management approach aimed at making improvements to your business through elevating the efficiency and effectiveness of the

processes that exist within and across organizations. If you want business process reengineering to be successful then the key for

organizations is to look at their business processes from a clean slate perspective in order to determine how they can best

construct these processes to improve how they conduct business.

It has been observed in the literature review that the main reasons of absenteeism are that there is no prompt redressal of

grievances or two way communication, presence of organizational dysfunction, socio-economic factors, cultural and legislative

structure of the nation, sickness, and personal factors. Along with this, implementation of BPR helps the companies bring in a

radical change in the working structure, which is the onus of the HR department. Hence it is up to the HR department to try and

use different methods to reduce absenteeism, while implementing BPR.


The research is based on the primary data. For the purpose of studying different methods of reducing absenteeism in the

implementation of Business Process Re-engineering in manufacturing companies, the primary data has been collected through a

structured questionnaire.

The respondents for the questionnaire are the HR managers (Top & middle level management) in manufacturing companies in

Pune and around Pune City. The data is collected through the questionnaire from 40 manufacturing companies in around Pune.

The Purposive Sampling technique has been used. There are 4950 manufacturing companies (pg-M1 to M39- in the book-Profile

and Analysis of Pune Mfg.Inc.) in & around Pune. 40 manufacturing companies have been selected.

These companies have satisfied the following conditions:

1. These companies had given their contact number to the Industrial Consultants.

2. These companies were registered with the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA.).

3. Out of the manufacturing companies, only those practicing BPR were contacted.

4. Prior appointment was taken from the HR Managers of the respective companies, from those who have responded.

Likert’s five point scale is used to measure the perceived qualitative response & opinion of the respondents of the selected

companies.

The analysis of the data is made with the help of percentile method. Manufacturing companies have been selected because all

processes are perfectly streamlined, therefore the study becomes relevant. Moreover, all the four factors, namely, people, land,

money and labor - are found in manufacturing units, whereas in service units, some elements are missing. Therefore, it becomes a

complete study.

SCOPE OF STUDY

The study is focusing on the reduction of absenteeism of employees in effective implementation of BPR in manufacturing

industries by the HR department in Pune.

OBJECTIVES OF STUDY

1. To study the different methods of reducing absenteeism.

2. To study the role of HR department in implementing BPR for reduced absenteeism.

3. To know the implementation of BPR in selected manufacturing companies in Pune.

HYPOTHESIS OF STUDY

Two way communication and prompt redressal of grievances has a positive impact on absenteeism.

In order to test the above hypothesis i.e. methods to reduce absenteeism by two way communication i.e. Method 4 has been

compared with the rest of the different methods of reducing absenteeism i.e. Method 1, Method 2 and Method 3, while

implementing BPR in manufacturing companies.



ANALYSIS AND FINDINGS

Table-1: Analysis of Different Absenteeism Methods of Comparison by Means

Source: Collected from the primary data of the research.

H0: mean responses for reducing absenteeism by Congenial work environment i.e. (method 1) = mean responses for reducing

absenteeism by method 4 i.e. by the two way communication

Against

H1: mean responses for reducing absenteeism by method 1 < mean responses for reducing absenteeism by method 4 i.e. by the

two way communication

Under H0, z = (mean X1 – Mean X4)/Standard error

= - 3.0632

< -1.64 (z table value at 5% level of significance for one sided test)

It can be concluded that rejection of H0 at 5 % level of significance; ie acceptance of the alternative hypothesis that the mean of

the method 1 is less than that of method 4 i.e. the two way communication method is appreciated by the employees than the

Congenial work environment.

H0: mean responses for reducing absenteeism by Training & counseling i.e. (method 2) = mean responses for reducing

absenteeism by method 4 ie by the two way communication

Against

H1: mean responses for reducing absenteeism by method 2 < mean responses for reducing absenteeism by method 4 ie by the two

way communication


= - 2.1753


It can be concluded that rejection of H0 at 5 % level of significance; ie acceptance of the alternative hypothesis that the mean of


Training & counseling.

H0: mean responses for reducing absenteeism by Employee welfare i.e. (method 3) = mean responses for reducing absenteeism by

method 4 i.e. by the two way communication

Against

H1: mean responses for reducing absenteeism by method 3 < mean responses for reducing absenteeism by method 4 ie by the two

way communication


= - 1.93531


It can be concluded that rejection of H0 at 5 % level of significance; i.e. acceptance of the alternative hypothesis that the mean of


Employee welfare.

Graph-1: Presentation of Acceptance and Rejection area for the testing of Hypothesis

Rejection Acceptance area

area

-∞ - 1.64 0 ∞

Values Method 1 Method 2 Method 3 Method 4

1 2 1 1 1

2 1 4 5 1

3 8 3 3 0

4 25 24 20 22

5 4 8 11 16

Means 3.7 3.85 3.875 4.275

Variances 0.76 0.8775 1.059375 0.649375

z value = -3.0632 -2.1753 -1.93531



Table-2: Analysis of Different Ways of Controlling Absenteeism While Implementing BPR

Measures to control Absenteeism Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

Congenial work environment 2 1 8 25 4 40

Training & counseling 1 4 3 24 8 40

Employee welfare 1 5 3 20 11 40

Two way communication &

prompt redressal of grievances 1 1 0 22 16 40


Graph-2: Comparison of Absenteeism Methods


It can be inferred from Table2, that ‘Two way communication & prompt redressal of grievances’ is the best way to control

absenteeism, as it appears to be extensively used method in the companies by the HR while implementing BPR. Further, this two–

way communication is extremely beneficial to both the parties as the management gets better returns & the employees are

satisfied and refrain from being absent. They also develop a sense of belonging and loyalty to the enterprise.

CONCLUSIONS

Based on the analysis of the manufacturing industries, we could conclude that the two way communication method is the best

method to reduce absenteeism than the other methods of reducing absenteeism such as congenial work environment, Training &

counseling, Employee welfare by the HR department while implementing BPR to meet the organizational goals.

REFERENCES

1. Tyagi, B. R. “Absenteeism and Labour Turnover”, Labour Economics and Social Welfare, p 60-87.

2. Morriej, Morris David, (1965). “The Emergence of an Indian Labour Force in India, A Study of Bombay Cotton Mills”,

1853-1947, Oxford University Press, Bombay, (First Indian Edition).

3. Baldev & Sharma, (1970). “Absenteeism: A search for Correkltes”, Indian Journal of Industrial Relations, Vol 5, S.No.

3rd Jan, p 267-289.

4. Bhatia, S. K., (1979). “How to tackle Absenteeism”, National Labour Institute Bulletin, Vol. 5. 7-8 July & August.

5. Agnus, Hone, (1968). “High Absenteeism & High Commitment”, Economic & Political Weekly, Vol.III, No.21, p 31-

32.

6. Vaid, K. N., (1967). “Work Behaviour & Work Attitude – A Study of Absentees”, Indian Journal of Industrial

Relations, Vol 2, No.3 (January), p 378-392.

7. “Business Process Reengineering: An Introductory Guide” by Peter Carter. Source:

http://www.teamtechnology.co.uk/business-process-reengineering.html.Visited on 10/9/08

8. “Correlating Business Process Re-Engineering With The Information Systems Department” by V. S. Lai, R. K.

9. Mahapatra. Published in International Journal of Production Research, Vol. 42(12), 2357-82 source:

http://4knowledgebrokers.blogspot.com/2006/04/correlating-business-process-re.html.Vsited on 10/9/08

10. What is BPR? What can it do for your Business? By Carolyn Clayton. http://www.1888articles.com/author-caarolyn-

clayton-1268.html. Assessed on 9/9/08.

*****

60

70

80

90

1.Congenial work

environment

2.Training &

counseling

3Employee

welfare

4 Two way

communication &

prompt redressal

of grievances

http://www.teamtechnology.co.uk/business-process-reengineering.html

http://4knowledgebrokers.blogspot.com/2006/04/correlating-business-process-re.html.Vsited%20on%2010/9/08

http://www.1888articles.com/author-caarolyn-clayton-1268.html

http://www.1888articles.com/author-caarolyn-clayton-1268.html



ROLE OF BUSINESS ETHICS AS A CORPORATE RESPONSIBILITY TOOL

Jyoti Bahl9

ABSTRACT

Business ethics is the area of applied ethics, which deals with the moral principles behind the operation, and regulation of

business. Business ethics have been an increasing concern among larger companies, at least since the 1990s. Major

corporations increasingly fear the damage to their image associated with press revelations of unethical practices.

Businesspersons have been among the fastest to perceive the customer’s preference for ethical companies, often moving faster

to take advantage of this shift in consumer taste. Ethics becomes a prerequisite for conducting any type of business. This paper

has identified role of business ethics as a corporate responsibility tool.

INTRODUCTION

Ethics is a branch of philosophy which seeks to address questions about morality, such as what are the fundamentals of morality,

nature of ethics or morality, how moral values should be determined, how a moral outcome can be achieved in specific situations,

how moral capacity or moral agency develops and what its nature is, and what moral values people actually abide. Business

ethics reflects the philosophy of business, one of whose aims is to determine the fundamental purposes of a company. Business

ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in

a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire

organizations.

The nature of business is defined by existing trends in the society where business operates. Society tends to encourage or

discourage particular aspects of business based on its own ideals and well-being. Business Ethics covers the very complex

relation between ethics and economics and management. Applications of ethics in business have concentrated on the relation

between ethics and marketing, on the relationship between the firm and its employees, on the relationship of the firm towards

their customers and other stakeholders. Recent research in ethics and finance and in corporate governance has covered the

particular problems related to the high growth and public offerings of companies.

Companies do not operate in a vacuum but rather are plunged in a universe of relationships with multiple stakeholders. With the

globalization, the scenario in which companies operate has become even more complex, given the emergence of global groups of

stakeholders. Furthermore, globalization has also increased the levels of competition among firms, which look for new a creative

ways to create a competitive edge. It is important to design an ethics program that is perceived by employees to be first and

foremost about shared organizational values and about guiding employees to act on their ethical aspirations. Ethics program that

guides the process of value creation within a company in a unique way is actually a critical source of competitive advantage.

BUSINESS ETHICS AS COMPETITIVE ADVANTAGE

Business ethics should become part of corporate codes, and if implemented in the line of business as a corporate philosophy it

should help achieving a competitive advantage for the firm. While short-term competitive advantage is obtained by appealing to

customers in targeted external markets, long-term sustainable competitive advantage is the result of exploiting an enduring core

of relevant capability differentials cultivated by responsible management of tangible and intangible internal skills and assets.

Business ethics of a firm has been defined as one of the invaluable intangible assets for competing. In general, intangible assets

are assuming increasingly competitive significance in rapidly changing domestic and global markets. As the speed of comparable

tangible assets acquisition accelerates and the pace of imitation quickens, firms that want to sustain distinctive global competitive

advantages need to protect, exploit and enhance their unique intangible assets, particularly integrity. Companies could perceives

stakeholder interdependence, demonstrate ethical awareness, and respond effectively to moral issue management put themselves

in a position of a competitive advantage in comparison to other companies without those internal resources, by providing a more

comprehensive list of ethics capacities.

The marketplace with globalization is becoming increasingly aware of, and increasingly discriminating against, corporations that

fail to meet the criteria of ethical business operations and ethical management principles. Furthermore, sustaining advantage

requires change. It demands that a corporation exploit, rather than ignore industry trends (one of the major trends is the demand

of business ethics). It also demands that a company invest to close off the avenues along which competitors could attack.

Business ethics as competitive advantage involves effective building of relationships with a company’s stakeholders based on its

integrity that maintains such relationships. Business relationships, like personal ones, are built on trust and mutual respect.

Successful business must treat the parties affected by the corporation’s actions as constituents to be consulted rather than

spectators to be ignored. Doing so was just smart business. This was a novel step in that it was among the first attempts to

characterize the impact of ethical behaviour on a company’s financial performance.

9 Assistant Professor, Department of Commerce, Udhampur Campus, University of Jammu, Jammu & Kashmir, India, [email protected]

http://en.wikipedia.org/wiki/Applied_ethics

http://en.wikipedia.org/wiki/Philosophy

http://en.wikipedia.org/wiki/Morality

http://en.wikipedia.org/wiki/Philosophy_of_business

http://en.wikipedia.org/wiki/Applied_ethics

http://en.wikipedia.org/wiki/Professional_ethics




BUSINESS PHILOSOPHY & CORPORATE RESPONSIBILITY

Business Philosophy is a driving force of a particular business. For instance, the “Business Philosophy” of Tata’s might be to

develop a business that is quality conscious and produces products that are within the reach of the common man. On the other

hand, Philosophy of Business explains the moral principles that underlie business as a domain. It goes into the purpose of

business and the ethical basis and consequences of business. Therefore, “Business Philosophy” relates to the vision of a company

whereas “philosophy of business” is an area of study. It is a sub-discipline of philosophy. The “Business Philosophy” may or

may not include the ethical dimensions. Peter Drucker and some leading management thinkers believe that it need not. However,

the “philosophy of business” necessarily and clearly is concerned with the ethical foundations of business as a discipline.

Philosophy of Business refers to an understanding of the moral and ethical basis of business as an area of knowledge. Just as

medicine is an area of knowledge business is an area of knowledge. Philosophy deals with knowledge. It answers the question of

what the role of a business is and as to what is the ethical basis of judgment of whether it is fulfilling its role or not. To draw an

analogy if the role of medicine is to cure the question is as to whether it is right for medicine to produce artificial genetic material

Therefore, while Business Philosophy is a part of Business Policy or Strategy the Philosophy of Business is a part of Applied

Philosophy. To answer Drucker, since applied philosophy is different for each applied discipline business ethics is a “separate”

study and needs to be so. Business Philosophy is a way of conducting business to achieve the goals of a particular business.

BUSINESS & SOCIETY

It is the perception about the nature of business and its relationship with society that defines the ‘Social Responsibility of

Business’. It determines what the responsibility of business towards society is and hence, the setting up standards of such

responsibility is based on philosophy of business since it is concerned with ‘the fundamental principles that underlie the

formation and operation of a business enterprise’.

The three inter-related aspects of the philosophy of business are:

1. Nature of business,

2. Its role in society, and

3. Its moral obligations towards society.

Nature of Business: Traditionally, business has been seen as a property institution rather than a social institution. In its

conventional form, the primary motive of business was to earn profits. It was believed that business should earn profits at any

cost. This implies that the domain of business as an entity was distinct and independent from that of the rest of society.

Role of Business In Relation To Other Entities: Society expected business to produce goods and services as per the need of its

members. Business as well as society expected the State or Government to take care of other social and environmental concerns.

Further, it was assumed that the managers would automatically meet the interest of shareholders.

Moral Obligation of Business: The conventional understanding is that a business is obliged to recompense factors of

production, which it does through the market mechanism. The factor incomes are commensurate to their contribution to social

product. The price paid for other resources, including natural resources, is equal to the cost of those to in real terms. Hence, it is

purported that a business automatically discharges its moral obligation towards society and does so in full measure.

CORPORATE RESPONSIBILITY

During the 1950s, academics and practitioners paid little attention to the practical concepts of strategy developed during World

War II in the military arena. In this post-war period, given the stability of the markets and increases in demand, most companies

in the U.S. and Europe were thinking primarily about efficient production systems. Later, by the 1960s, large companies moved

from an emphasis on operations, budgeting and control areas to an emphasis on planning aspects.

The growing complexity and dynamism of the environment and the need for solutions to this situation from the firm’s top

managers demanded future planning and a global view. As a result, most business schools by that time required “corporate

policy” as the “capstone” course at the end of every business curriculum. Top executives were concerned with the general

direction and long-term policy of their enterprises. Business policy professors encouraged thinking systematically about

companies’ strategies. Social responsibility and moral values were explicitly considered by pioneers of the strategy concept in the

1960s. The importance given to social responsibilities during the 1970s linked CR and strategy; a link based on long-term

economic effects and beyond the personal values of managers. Among others, emphasized the risk a company would bear if its

behavior were contrary to the expectations of those who constituted the company’s social environment.

From the very beginning, proponents of CR struggled for businesses that were respectful to all, and defended human rights and

human conditions in the work place. The most common references, however, were to the “values of our society,” “social

expectation,” “performance expectation,” and so forth, instead of “ethical duties” or equivalent expressions. Nevertheless, some

authors went further by relating CR to ethical principles. Others scholars changed their position when the business ethics

movement emerged in the late 1970s, defending the existence of ethical bases for CR.

Corporate Responsibility, it has been seen arises from Business Ethics and has three dimensions, that is:



a) Good Governance,

b) Corporate Social Responsibility,

c) Environmental Accountability.

This is how business ethics becomes an all-pervading influence in the governance of business. The top management is not only

responsible to envision such a change but to translate this vision into practices and also to make sure that they adopt a balanced

approach towards three dimensions. It should be evidenced from the conduct of business, as it is not easy for them to get away

from this by indulging into only in lip service.

Good Governance

The corporations are formed on the basis of division of ownership and control, in which the investor or owner relies on the

manager i.e. CEO to manage the business on his behalf which implies that principal agent relationship exists between investor

and manager, which causes the room for asymmetric information i.e. there is always a gap between the information possessed by

the manager vis-à-vis the investors. This situation calls for a good governance, corporate governance means transparency.

The shareholders must have full and true information. There should be transparency in processes, so that the agent (manager)

cannot mismanage or take the advantage of the asymmetric information. The objective of good governance is to have such

system of controlling and managing so that the interest of owner may be protected. For this to be successful, whatever hurdles are

there in the processes are to be removed.

The processes are necessary to prohibit the manager to push their own agenda or self interest, i.e. the manager as working in the

capacity of agent, might have their own individual goals to pursue which are not in line with organizational goals. Such processes

are to be institutionalized which protect the interest of the owner i.e. profit maximization and wealth maximization.

Therefore, ethical structure has the implication for good governance, which means better profits. It is important to make profits

within ethical framework. There is a shift in the psychology of investors they are not only curious to know how much profit the

Company has booked but also how this profit has been earned, i.e. ethically or unethically be taken seriously, if not, it would be

interpreted as if the business is not indulging into good governance.

Corporate Social Responsibility (“CSR”)

Second ethical dimension of CSR includes the social practices where the company is discharging its responsibility towards

community at large i.e. stakeholders. Stakeholders are the ones who can influence or can be influenced by the actions, decisions,

policies, practices and goals of the company. Apart from shareholder, it includes employees’ consumers, supplies, government

competitors, and community at large. Traditionally, so far business was treated purely from the point of view of private personal

pecuniary motive. Now, a company has acknowledged its responsibilities to society that goes beyond the production of goods

and services at a profit. It involves the idea that the corporate has a broader constituency to serve than that of shareholder alone,

in more recent years, the term stakeholder has been widely used to express this broader set of responsibilities. By now, it is

accepted that corporations are more than economic institutions and they have a responsibility to help society to solve pressing

social problems. CSR is about how companies manage the business processes to produce an overall positive impact on society.

CSR is about business giving back to society. The concept of social responsibility is fundamentally an ethical concept as it

involves changing notions of human welfare, and emphasizes a concern with the social dimension of business activity that have

to do with improving quality of life. The concept provided a way for business to concern itself with these social dimensions and

pay some attention to its social impacts. As a result, many of them put a step forward for discharging their responsibility by

indulging into philanthropy or by bringing CSR into business strategy.

Environmental Accountability

Corporate Responsibility has third dimension in form of accountability of business towards environment. As business interacts

with its natural environment, it draws its resources from the environment. It also influences the environment by its actions.

Therefore, it is also accountable to it for any impact, which it makes. Earlier corporate dumped their wastes with impunity in the

environment. With the growing awareness and concern about environmental degradation, depletion of natural resources like

water and fossil fuels and the phenomenon of global warming, there is moral and legal pressure on corporate to realize that the

earth needs to be preserved, and looked after so that future generation are not adversely affected.

Corporate Responsibility is closely linked with the principles of Sustainable Development, in proposing that the enterprises

should be obliged to make decisions based not only on financial or economic factors but also on the social and environmental

consequences of their activities. Therefore, corporate responsibility is about how businesses align their values and behaviour with

the expectations and needs of different stakeholders. It also describes a company’s commitment to be accountable to its

environment, i.e. planet, to be responsible to its society, i.e. people and to be transparent in his business practices, i.e. good

governance which determines the profit for the investors.



ROLE OF TOP MANAGEMENT

The leaders of the business must realize the importance of putting people and planet at par with the profit if not before it. As in

today’s highly competitive economy, the importance of ensuring positive impact on the society can be crucial to both the

corporate reputation and business success. For incorporating ethical considerations, that comes no doubt from top leadership who

are aware of the fact that three dimensions of ethics percolates all through the organization. However, such awareness about CR

must be backed by commitment and consciousness to enforce the top management to find out the ways to integrate ethics and

values into their day-to-day decision-making. Of course, the role of top management is crucial in the sense that he has the

responsibility to translate this vision into business strategy. He has to further harness the CR practices by bringing out the

organizational transformation with which this vision would be carried down from top to bottom level in the organization. It is

possible by developing systems, processes, policies, plans, practices, having programmes so that it is deeply embedded into the

organization. Ultimately, it pervades the whole organization, which means not only from top to bottom but also in all functional

areas, whether it be HR, marketing, account, finance etc. This whole process is known as institutionalization of CR practices into

business system.

RECOMMENDATIONS

Marketers should act consistently with codes of good conduct and avoid engaging in stealth marketing tactics. In practice,

however, practitioners might easily mistake stealth marketing for a relatively innocuous covert marketing campaign. With this in

mind, we offer the following guidelines to marketers:

1. Marketers should seek alternatives to deception, intrusion, and exploitation. Connected Marketing, a respected

practitioner manual for cover marketing, opens with the fifteen most high profile and influential viral, buzz, and word

of mouth marketing campaigns to date. This compilation provides strong evidence that firms and marketing managers

striving to remain at the forefront of innovative marketing need not rely on these unethical practices to capture

consumers’ attention.

2. Marketers can continue to reach customers using novel, clever, and entertaining marketing practices without violating

those customers’ trust, privacy, self-esteem, or faith in social relationships.

3. Marketers can apply ethically acceptable humor, entertainment, competition, and fun to cut through perceived

marketing clutter and reach consumers effectively.

4. Research findings indicate that marketing or brand transgressions, such as the ethical transgressions committed through

stealth marketing, can have lasting and damaging consequences for firms. Indeed, some transgressions can resonate so

powerfully with consumers that even firms’ most sincere attempts to repair the damage can have no effect on firm or

brand recovery.

5. More dramatically, consumer negative voice, a possible response to firm transgressions, may directly affect the bottom

line by decreasing stock returns and damaging overall firm performance. Further problematic potential outcomes

include spillover effects, where firms’ reputations suffer owing to scandals involving their competitors.

6. Avoiding ethical transgressions altogether could well be in the best interests of firms considering covert marketing

practices as well as the best interests of firms’ competitors and channel partners. As we discuss next, providing full

disclosure may represent one necessary safeguard for preventing perceived ethically egregious practices.

7. There needs to be a self-regulation through disclosure Organizations boasting prestigious memberships have identified

stealth marketing tactics as deceptive, unethical, and not in the long-term best interests of the field.

REFERENCES

1. Azmi, R. A., (2006). “Business Ethics as Competitive Advantage for Companies in Globalization Era”, www.ssrn.com

2. Borgerson, J. L., and Schroeder, J. E., (2005). “Identity in Marketing Communications: An Ethics of Visual

Representation”, Marketing Communication: New Approaches, Technologies, and Styles, Oxford University Press.

3. Fassin, Y., (2000). “Innovation and Ethics: Ethical Considerations in Innovation”, Business Journal of Business Ethics

27: 193–203.

4. Murthy, K. V. B., (2007). “Business Ethics and Corporate Responsibility – A New Perspective”, www.ssrn.com.

5. Martin, K. D., and Smith, N. C., (2008). “Commercializing Social Interaction: The Ethics of Stealth Marketing”, 19

ISIC, www.ssrn.com.

6. Paul, C. J. M., (2006). “Corporate Social Responsibility and Economic Performance”, www.ssrn.com.

*****

http://www.ssrn.com/






RECRUITMENT PROCESS OF AUTOMOBILE INDUSTRIES IN CHENNAI

P. Yuvaraman10 K. V. Kannan11

ABSTRACT

Recruitment is the set of activities and processes used to legally obtain a sufficient number of qualified people at the right

place and time so that the people and the organization can select each other in their own best short and long term interests.

Successful recruitment begins with proper employment planning and forecasting. In this phase of the staffing process, an

organization formulates plans to fill or eliminate future job openings based on an analysis of future needs, the talent available

within and outside of the organization, and the current and anticipated resources that can be expended to attract and retain

such talent.

The results indicate that for the positions of design engineer, product development engineer, R&D engineer and sale engineer,

the recruitment process of suitability of the position, screening, aptitude tests of mathematics, logical, verbal and non-verbal

reasoning, technical written test, interview process of automobile engineering knowledge, automobile electronics knowledge,

automobile practices and personal interview, reference checking and selection have been adopted in automobile industries.

The recruitment process of suitability of the position, screening, aptitude tests of mathematics, logical, verbal and non-verbal

reasoning, group discussion, personal interview, reference checking and selection have been adopted for the positions of

Finance and HR managers in automobile industries.

The results show that an interview schedule was provided to me in advance, interviews were scheduled and confirmed in a

timely manner, timeframe between your final interview and your offer, timeframe from verbal offer to physical offer and the

various components of my offer package were explained to me are agreed by the employees of automobile industries as

perceived by them. The factor analysis shows that there are seven independent groups were extracted which account for a total

of 72.14 per cent of variations on the 19 variables and these factors are grouped in to intelligence, performance, relationship,

orientation, responsibility, comfortability and environment.

In order to improve the recruitment process, the business should market its vision, culture and values during the recruitment

process to differentiate from its competitors to communicate this message both internally and externally. A detailed job

description is used to write a detailed job advert. It is vitally important that the recruiter really understands what sort of

creature their client is looking for. The advert should also include some details about the company and why the candidate

would want to work for them. Craft a core competence template to use during the interview process so that you can rate the

individual skills, knowledge, attitudes and behavior of each potential candidate.

KEYWORDS

Automobile industries, Core Skills, Factor Analysis, and Recruitment Process etc.

INTRODUCTION

Recruitment is the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place

and time so that the people and the organization can select each other in their own best short and long term interests. The

recruitment process provides the organization with a pool of potentially qualified job candidates from which judicious selection

can be made to fill vacancies.

Successful recruitment begins with proper employment planning and forecasting. In this phase of the staffing process, an

organization formulates plans to fill or eliminate future job openings based on an analysis of future needs, the talent available

within and outside of the organization, and the current and anticipated resources that can be expended to attract and retain such

talent. Also related to the success of a recruitment process are the strategies an organization is prepared to employ in order to

identify and select the best candidates for its developing pool of human resources. Organizations seeking recruits for base-level

entry positions often require minimum qualifications and experience. These applicants are usually recent university/ technical

college graduates many of whom have not yet made clear decisions about future careers or are contemplating engaging in

advanced academic activity.

At the middle levels, senior administrative, technical and junior executive positions are often filled internally. The push for scarce,

high-quality talent, often recruited from external sources, has usually been at the senior executive levels. Most organizations

utilize both mechanisms to effect recruitment to all levels.

Recruitment may be conducted internally through the promotion and transfer of existing personnel or through referrals, by current

staff members, of friends and family members. Where internal recruitment is the chosen method of filling vacancies, job openings

can be advertised by job posting, that is, a strategy of placing notices on manual and electronic bulletin boards, in company

10Assistant Professor, Periyar University, Tamil Nadu, India, [email protected] 11Assistant Professor and Head, Department of Business Administration, Arignar Anna Govovernment Arts College, Tamil Nadu,

India, [email protected]





newsletters and through office memoranda. With this background, the present study was attempted to examine the recruitment

process in automobile industries in Chennai.


Among the different industrial centers in Tamil Nadu, the Chennai city has been purposively selected for the present study. The

employees of automobile industries have been selected randomly for the present study by adopting random sampling technique

through pre-tested, structured interview schedule through direct interview method. The data and information were collected from

200 employees of automobile industries and pertain to the year 2010-2011.

Statistical Techniques

In order to understand the socio economic characteristics of employees of automobile industries, percentage analysis and

frequency distribution are worked out. The satisfaction of recruitment process is analyzed through weighted mean. In order to

study difference between stages recruitment processes, t-test has been applied. In order to identify the core skills required for

recruitment, the factor analysis has been employed with principal component extraction with varimax rotation. The factor analysis

can be expressed as:

Zij = a1 f1 j + a2 f2 j + ...+ am fmj + eij

Whereas: ‘Z’ = Core Skill Required, ‘a’ = Factor Loadings, ‘f’ = Factor Score, ‘e’ = Residual term accounting for Errors or other

Source of Variation.

RESULTS AND DISCUSSIONS

Socio Economic Characteristics

The socio economic characteristics of employees of automobile industries were analyzed and the results are discussed as below:

Age

The frequency distribution of age of the employees in automobile industries was analyzed and the results are presented in Table1.

Table-1: Frequency Distribution of Age of Employees in Automobile Industries

Age(Years) Frequency Per cent

<25 20 10.00

26-30 73 36.50

31-35 47 23.50

35-40 50 25.00

>40 10 5.00

Total 200 100.00

Source: Primary & Computed Data.

From the table, it is observed that the majority of employees in automobile industries (36.50 per cent) belong to the age group of

26-30 years followed by 35-40 years (25.00 per cent), 31-35 years (23.50 per cent), less than 25 years (10.00 per cent) and more

than 40 years (5.00 per cent).

Educational Qualification

The educational qualifications of the employees in automobile industries were analyzed and the results are presented in Table2.

Table-2: Frequency Distribution of Educational Qualification of Employees in Automobile Industries


The results indicate that about 44.50 per cent of the employees in automobile industries are B.E. graduates followed by M.E.

graduates (21.50 per cent), B.Tech Graduates (16.50 per cent), M.Tech graduates (7.50 per cent), M.B.A. graduates (7.00 per

cent) and M.Com graduates (3.00 per cent).

Educational Qualification Frequency Per cent Educational Qualification Frequency Per cent

B.E. 89 44.50 M.Tech 15 7.50

B.Tech. 33 16.50 M.B.A. 14 7.00

M.E. 43 21.50 M.Com 6 3.00

Total 200 100.00



Designation

The designations of the employees in automobile industries were analyzed and the results are presented in Table3.

Table-3: Frequency Distribution of Designation of Employees in Automobile Industries


The results show that about 25.00 per cent of employees in automobile industries are product development engineer followed by

design engineer (24.50 per cent), sales engineer (21.00 per cent), R&D engineer (19.50 per cent) and finance and HR manager

(5.50 per cent).

Monthly Income

The monthly income of the employees in automobile industries was analyzed and the results are presented in Table 4.

Table-4: Frequency Distribution of Monthly Income of Employees in Automobile Industries


From the results, it is clear that about 28.50 per cent of employees in automobile industries earn monthly income of Rs. 25001-

30000 followed by Rs. 20001-25000 (23.50 per cent), less than Rs. 20000(20.00 per cent), Rs. 30001-35000 (17.00 per cent) and

Rs. more than 35000 (11.00 per cent).

Recruitment Process in Automobile industries

The recruitment process in automobile industries for various designations was analyzed and the results are presented in Table5. It

is observed that for the positions of design engineer, product development engineer, R&D engineer and sale engineer, the

recruitment process of suitability of the position, screening, aptitude tests of mathematics, logical, verbal and non-verbal



Table-5: Recruitment Process for Various Designations in Automobile Industries

Recruitment Process Design

Engineer

Product Development

Engineer

R & D

Engineer

Sales

Engineer

Finance

Manager

HR

Manager

Suitability for the Position √ √ √ √ √ √

Screening √ √ √ √ √ √

Aptitude Test

Mathematics √ √ √ √ √ √

Logical Reasoning √ √ √ √ √ √

Verbal Reasoning √ √ √ √ √ √

Non-Verbal Reasoning √ √ √ √ √ √

Technical Written Test √ √ √ √ x x

Group Discussion x x x x √ √

Interview

Automobile Engineering Knowledge √ √ √ √ x x

Automobile Electronics Knowledge √ √ √ √ x x

Automobile Practices √ √ √ √ x x

Personal √ √ √ √ √ √

Reference Checking √ √ √ √ √ √

Selection √ √ √ √ √ √


reasoning, group discussion, personal interview, reference checking and selection have been adopted for the positions of Finance

and HR managers in automobile industries.

Designation Frequency Per cent Designation Frequency Per cent

Design Engineer 49 24.50 Sales Engineer 42 21.00

Product Development Engineer 50 25.00 Finance Manager 10 5.00

R & D Engineer 39 19.50 HR Manager 10 5.00

Total 200 100.00

Monthly Income(Rs) Frequency Per cent Monthly Income(Rs) Frequency Per cent

< 20000 40 20.00 30001-35000 34 17.00

20001-25000 47 23.50 > 35000 22 11.00

25001-30000 57 28.50 Total 200 100.00



Satisfaction Level of Recruitment Process in Automobile industries

The satisfaction level of recruitment process in automobile industries was analyzed by working out weighted mean and the results

are presented in Table6. The results show that an interview schedule was provided to me in advance, interviews were scheduled

and confirmed in a timely manner, timeframe between your final interview and your offer, timeframe from verbal offer to

physical offer and the various components of my offer package were explained to me are agreed by the employees of automobile

industries as perceived by them.

The travel arrangements were satisfactory, Interview process compares favorably to that of other companies, Overall, I am very

satisfied with company’s interview process and I was provided with a good overview of company’s relocation package are

disagreed by the employees in automobile industries and they are indifference with recruitment process compares favorably to

that of other companies and overall, I am very satisfied with company’s recruitment process.

Table-6: Satisfaction of Recruitment Process in Automobile Industries

Satisfaction Weighted Mean Status

Pre-Interview Arrangements

An interview schedule was provided to me in advance 4.10 A

Travel arrangements were satisfactory 2.10 D

Interviews were scheduled and confirmed in a timely manner 4.00 A

Interview Process

Interview process compares favorably to that of other companies 1.68 D

Overall, I am very satisfied with company’s interview process 2.10 D

Offer Process

Timeframe between your final interview and your offer 4.40 A

Timeframe from verbal offer to physical offer 4.12 A

The various components of my offer package were explained to me 4.20 A

I was provided with a good overview of company’s relocation package 2.20 D

Overall Recruitment Process

Recruitment process compares favorably to that of other companies 3.10 ID

Overall, I am very satisfied with company’s recruitment process 3.14 ID

Note: A = Agree if weighted mean is 4.00.

ID=Indifference if weighted mean is 3.00.

D=Disagree if weighted mean is 2.00.

Difference between Stages of Recruitment Processes in Automobile Industries

In order to identify the difference between stages recruitment processes in automobile industries, t-test has been employed and the

results are presented in Table7.

Table-7: Difference between Stages of Recruitment Processes in Automobile Industries

Stages of Recruitment Processes t-Value df Sig

Pre-Interview-Overall Interview Process 4.124** 198 0.01

Pre-Interview- Offer Process 4.221** 198 0.01

Pre-Interview-Overall Recruitment Process 4.186** 198 0.01

Overall Interview Process-Offer Process 3.922** 198 0.01

Overall Interview Process- Overall Recruitment Process 3.785** 198 0.01

Offer Process- Overall Recruitment Process 3.849** 198 0.01

Note: ** indicates significance at one per cent level.

The results show that the t-value of 4.124 for pre-interview-overall interview process is significant at one per cent level. Hence,

there is a significant difference exiting between pre-interview-overall interview process in automobile) industries. The t-value for

pre-interview- offer process is 4.221 and it is significant at one per cent level. It indicates that there is a significant difference

between pre-interview- offer process in automobile industries.

The results also indicate that t-value for pre-interview-overall recruitment process is 4.186 and it is significant at one per cent

level. Therefore, there is a significant difference between pre-interview - overall recruitment process in automobile industries. The

results show that the t-value of 3.922 for overall interview process-offer process is significant at one per cent level. Hence, there is

a significant difference exiting between overall interview process - offer process in automobile industries.

The t-value for overall interview process- overall recruitment process are 3.785 and it is significant at one per cent level. It

indicates that there is a significant difference between overall interview process- overall recruitment process in automobile

industries. The results also indicate that t-value for offer process- overall recruitment process is 3.849 and it is significant at one



per cent level. Therefore, there is a significant difference between offer process - overall recruitment process in automobile

industries.

Core Skills Required for Recruitment in Automobile Industries

In order to identify the core skills required for recruitment in automobile industries, the factor analysis has been employed. The

principal component method of factor analysis was carried out with Eigen values greater than one through varimax rotation and

the results obtained through rotated component matrix are presented in Table8.

There are seven independent groups were extracted which account for a total of 72.14 per cent of variations on the 19 variables.

Each of seven factors contributes 12.27 per cent, 11.21 per cent, 10.65 per cent, 10.01 per cent, 9.62 per cent, 9.20 per cent and

9.18 per cent respectively.

Table-8: Factor Analysis for Core Skills Required for Recruitment in Automobile Industries

Core Skills Rotated Factor Loadings on

Factor I Factor II Factor III Factor IV Factor V Factor VI Factor VII

Technical skill -.76

Behavioral skill -.74

Leadership skill .89

Command skill .66

Intellectual skill .67

Communication skill .75

Inter personal skill .73

Problem solving skill .79

Decision making skill .52

Innovation skill .54

Responsive skill -.56

Result orientation skill -.53

Strategic skill .68

Cooperation skill -.56

Teamwork skill -.56

Commitment skill -.70

Consumer oriented skill .80

Information sharing skill .72

Learning skill -.59

Eigen Value 2.70 2.31 2.18 2.03 1.81 1.57 1.09

% of Variance 12.27 11.21 10.65 10.01 9.62 9.20 9.18

Cumulative % of Variance 12.17 23.48 34.13 44.14 53.76 62.96 72.14

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Rotation converged in 12 iterations.


Factor-I: From the table, it is inferred that out of 19 core skill variables, four variables have their high, relatively tightly grouped

factor loadings on factor-I. This factor consists of:

Intellectual skill (0.67)

Communication skill (0.75)

Inter personal skill (0.73)

Information sharing skill (0.72)

Hence, this factor is named as “INTELLIGENCE”.

Factor-II: is formed with:

Decision making skill (0.52)

Innovation skill (0.54)

Result orientation skill (-0.53)

These variables are named as “PERFORMANCE”.



Factor-III: This factor includes:

Technical skill (-0.76)

Leadership skill (0.89)

Cooperation skill (-0.56)

These three variables are named as “RELATIONSHIP”.

Factor-IV: This factor is formed with:

Commitment skill (-0.70)

Consumer oriented skill (0.80)

Learning skill(-0.59)

This factor is named as “ORIENTATION”.

Factor-V: This factor includes:

Problem solving skill (0.79)

Responsive skill (-0.56)

The factor is named as “RESPONSIBILITY”.

Factor-VI: This factor is formed with:

Behavioural skill (-0.74)

Command skill (0.66)

This factor is named as “COMFORTABILITY”.

Factor-VII: This factor includes:

Strategic skill (0.68)

Teamwork skill(-0.56)

The factor is named as “ENVIRONMENT”.

Reliability

The core skills required for recruitment in automobile industries was measured using a five point scale and the reliability

coefficient is presented in Table 9.

Table-9: Cronbach’s Alpha- Reliability Coefficient

Variables No. of Items Cronbanch Alpha

Core Skills 19 0.89

Source: Primary & Computed Data

The Cronbach’s alpha of the scale was 0.89 indicating that each measure demonstrated acceptable internal consistency.

CONCLUSIONS AND RECOMMENDATIONS

The foregoing analysis shows that the majority of employees in automobile industries (36.50 per cent) belong to the age group of

26-30 years and the majority of them are B.E. graduates. The results show that about one fourth of employees in automobile

industries are product development engineer and nearly one-third of employees earn monthly income of Rs. 25001-30000.

The results indicate that for the positions of design engineer, product development engineer, R&D engineer and sale engineer, the

recruitment process of suitability of the position, screening, aptitude tests of mathematics, logical, verbal and non-verbal




reasoning, group discussion, personal interview, reference checking and selection have been adopted for the positions of Finance

and HR managers in automobile industries.



The results show that an interview schedule was provided to me in advance, interviews were scheduled and confirmed in a timely

manner, timeframe between your final interview and your offer, timeframe from verbal offer to physical offer and the various

components of my offer package were explained to me are agreed by the employees of automobile industries as perceived by

them.

The factor analysis shows that there are seven independent groups were extracted which account for a total of 72.14 per cent of

variations on the 19 variables. The each of seven factors contributes 12.27 per cent, 11.21 per cent, 10.65 per cent, 10.01 per cent,

9.62 per cent, 9.20 per cent and 9.18 per cent respectively and these factors are grouped in to intelligence, performance,

relationship, orientation, responsibility, comfortability and environment.

In order to improve the recruitment process, the business should market its vision, culture and values during the recruitment

process to differentiate from its competitors to communicate this message both internally and externally. A detailed job

description (customized assignment sheet) is used to write a detailed job advert. It is vitally important that the recruiter really

understands what sort of creature their client is looking for.

The advert should also include some details about the company and why the candidate would want to work for them. Craft a core

competence template to use during the interview process so that you can rate the individual skills, knowledge, attitudes and

behaviours of each potential candidate.

There should be a sufficient time between deciding on a supplier and commencing the recruitment programme to ensure that the

delivery is smooth and allow plenty of time for testing. Further, promotion of rich content via RSS (Really Simple Syndication)

feed to push jobs to personal laptops, mobile ‘phones and personal web addresses to those who have registered their career

aspirations either online or through a dedicated hot line. (The pro-active push, rather than the reactive pull approach).

REFERENCES

1. Anderson, N.; Lievens, F.; Van Dam, K., and Ryan, A. M., (2004). “Future Perspectives on Employee Selection: Key

Directions for Future Research and Practice”, Applied Psychology: An International Review, 53(2): pp. 487-494.

2. Brannick, M. T.; Brannick, J.P., and Levine, E.L., (1992). “Job Analysis, Personnel Selection, and the ADA”, Human

Resource Management Review, 2(3): pp.171- 183.

3. Piotrowski, Chris, and Terry Armstrong, (2006). “Current Recruitment and Selection Practices: A National Survey of

Fortune 1000 Firms”, North American Journal of Psychology, 8(3): pp.489-496.

4. Gross, A., and Mancini, L., (1996). “Strategies for Successfully Recruiting Staff for China”, International HR Journal,

24(3): pp.142-156.

5. Jones, D. A.; Shultz, J. W., and Chapman, D. S., (2006). “Recruiting Through Job Advertisements: The Effects of

Cognitive Elaboration on Decision Making”, International Journal of Selection and Assessment, 14(2): pp. 167-179.

6. Kirnan, J. P.; Farley, J. A., and Geisinger, K. F., (1989). “The Relationship between Recruiting Sources, Applicant

Quality, and Hire Performance: An Analysis by Sex, Ethnicity, and Age”, Personnel Psychology, 42(2): pp.293-308.

7. Lewis, P., (2003). “New China-old Ways? A Case Study of the Prospects for Implementing Human Resource

Management Practices in a Chinese Stated-owned Enterprise”, Employee Relations, 25 (1):pp.42-60.

8. Clark, Penny, (2002). “Recruitment and Selection Practices in a Selected Organisation”, Journal of Management

Practice, 4(1): pp. 166-177.

9. Williams, Sue, and Helen Verhoeven, (2010) “’We-find-you’ or ‘You-find-us’? - Internet Recruitment and Selection in

the United Kingdom”, International Review of Business Research Papers, 8(2): pp.374-384.

10. Wiechmann, D.; Ryan, A. M., and Hemingway, M., (2006). “Designing and Implementing Global Staffing Systems:

Part I: Leaders in Global Staffing”, Human Resource Management, 42 (1): pp.85-96.

*****

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Jammu Tawi – 180002, Jammu and Kashmir, India.

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MODE OF WAGE PAYMENT TO WOMEN WORKER’S - EVIDENCE FROM NFHS-3

Jaya Kumari Pandey12

ABSTRACT

Gender inequalities and women’s needs and well-being have become part of the mainstream discussion both from a legal

perspective for ensuring equal rights legislation and in the sphere of public policies. In recent years, there have been

improvements in women’s labour market participation and in many other aspects of their social life. In sum, more recent

generation of women have had more opportunities than the generations of women before them. However, the changes have not

been sufficient to eradicate gender inequalities, discrimination or exploitation.

Gender discrimination is also present in labour market in various forms. The discrimination in the mode of payment of wages

for women workers in rural India has been reported in many studies. Most of the agricultural work of women in India is paid in

kind which places them at disadvantaged position. In fact kind wages for women workers is a source of exploitation.

This paper analyzes the issue of kind vs. cash payment in labour transactions for women workers in rural India as a source of

exploitation. The mode of wage payment is the only means to enlarge the boundaries of one’s choices if it be in cash while kind

payment delimits the choice of an individual by compelling him/her to use that particular thing. However, there is no denying of

the fact that kind wages do offer some significant benefits which has been examined by researches earlier.

In this light the present work tries to analyse the prevalence of kind wage system in the Indian labour market. It tries to

investigate into the nitty gritty of this wage system with an aim to identify the variables / factors that have an important bearing

on it. For example, the mode of payment of wages may vary among various socio economic groups and across states or regions.

The paper tries to explore in depth trends and facts from the NFHS-3 data. Starting with the share of major states in the only

cash and only kind wages and proceeds to analyse other relationships.From the empirical analysis of the data on cash and kind

wages it deducts many conclusions.

The most important conclusion is that mode of wage payment is significantly influenced and affected by a number of variables

but notable amongst them includes the educational attainment of the worker and nature of job undertaken. The finding that only

kind wages are positively associated with the low educational level of the women workers infers the need for raising the literacy

among women workers as well as improving their access to higher education.

The study also indicates that cash wages are more prevalent in jobs requiring some sort of skill. Similarly, states with more rigid

patriarchal value have higher kind wages percentages than the societies with liberal views. The paper recommends that for

improving the welfare of women workers, it is required that kind wages be totally replaced by cash wages and educational

attainment and skill enhancement of the women workers will be instrumental in achieving this goal.

Finally, Indian government & state government and related agencies should provide the sufficient education, managerial skills,

technical and financial support, proper motivation, foresight, infrastructure facilities and training, job security for improving the

condition of women worker’s in labor market.

INTRODUCTION

Gender inequalities and women’s needs and well-being have become part of the mainstream discussion both from a legal

perspective—ensuring equal rights and curbing all forms of discrimination through legislation—and in the sphere of public

policies. In recent years, there have been improvements in women’s labour market participation, and in many other aspects of

their social life. In sum, more recent generation of women have had more opportunities than the generations of women before

them. However, the changes have not been sufficient to eradicate gender inequities, discrimination or exploitation.

Gender discrimination is present in labour market and it takes various forms. The discrimination in the mode of payment is

tantamount to exploitation of the women workers. The modes of wage payment to workers have important implications for the

benefits of household and its future progress. The reason why this paper analyzes the issue of kind vs. cash payment in labor

transactions for women workers in India is that most of their agricultural work is paid in kind in rural India, which places them at

disadvantaged position. In fact kind wages for women workers is a source of exploitation.

As the mode of wage payment is the only means to enlarge the boundaries of one’s choices if it be in cash. And kind payment

delimits the choice of an individual by compelling him/her to use that particular thing. However, there is no denying the fact that

kind wages do offer some significant benefits which has been examined by researches earlier. However it must be noted that

labour is not the only factor of production to be remunerated in kind. Land rent and credit are another example of such choice.

12Research Scholar, Department of Economics, Faculty of Social Sciences, Banaras Hindu University, Uttar Pradesh, India, [email protected]




Rent is paid for the use of land in cash as well as in kind, in which a certain portion of the produce from the rented land is paid to

the landlord. Similarly wages can be paid to the worker either in cash or in terms of goods and services.

Economists have traditionally been sceptical about in-kind transfers viewing cash as superior in terms of the recipient’s utility: In-

kind transfers constrain the behaviour of the recipients, while cash transfers do not. In spite of the importance of cash

wages, there is a great paucity of rich literature and theoretical models on cash wages vs. kind wages. In terms of both theory and

practice, there appears to be a strong case for cash-based response to the sale of labour by women workers. The rationale for cash

interventions is implicitly based on the entitlement theory. In our view, work on entitlements offers solid theoretical base for cash

wages, and the practical experience so far, though limited, provides evidence that cash wages, are instrumental to a great extent in

empowering the women workers by eliminating labour market disparities for them.

A clear set of economic issues arise in considering the appropriateness of cash. Economists have approached these in terms of a

comparison with in-kind alternatives (Abdulai, Barrett, & Hazell 2004; Barrett & Maxwell 2005; Coate 1989). Economists tend to

see cash as inherently preferable to in-kind mechanisms because it is, economically, more efficient (Tabor, 2002). It neither seems

fair not rational that the employer should decide the consumption pattern rather than figuring out on their own how to spend their

income?

To economists, it’s almost an article of faith that monetary wages are better than kind wages. The reason is that the former

increases the resources available to the workers or households without distorting the market or individual choice, whereas latter

necessarily involves a market distortion. The most obvious distortion is that kind wages, which reduce the market price and by

definition cannot be targeted, allows everyone to benefit, even those who don’t need help, whereas cash wages can be directed to

the targeted worker.

In Hunger and Public Action, Dreze and Sen argued strongly for greater consideration of cash responses (Dreze & Sen 1990)

although informed by entitlement theory, their arguments were not just theoretical, but were also based on an assessment of the

practicalities of different forms of response. The mode of wage payment has much to do with the functioning of the individual. In

Sen’s (1987) view the welfare of an individual is directly related to the amount of utility that she derives from any commodity. It

is possible in the Sen’s (1987) framework that all individuals get the same kind payment but its consumption by them will lead to

different welfare levels for them. This is because each individual differ in the capability and thus will derive different utility from

the use of same commodity. This will further affect her functioning and finally her welfare. It is quite logical to assume that if a

person has a thing that can be put to several uses then the amount of utility yielded by that thing will be definitely higher than any

other commodity with restrictive uses. Same applies to the argument of cash vs. Kind wages. Kind wages are restrictive and do

not leave too much choice on the part of individual. This negatively affects the functioning and capability of the individual and his

level of welfare finally.

Monetary wages offer certain advantages which has important implications for the capability of the individual. Monetary wages

offer the individual the choice of consuming (saving is not ruled out) it and thus enhances the capability of the individual. It

enlarges the opportunity set of the concerned individual. Therefore, the individual will reach a higher level of welfare. Perhaps

more importantly the use of a cash wages strategy provides beneficiaries with a choice not afforded them by kind wages. Kind

wages can be insufficient to live on as a result of poor micronutrient content and palatability (Wilson, 1991, Clay and Stokke).

Cash wages recognise the ability of women workers to make their own decisions in prioritising needs whilst the payment in kind

gives little provision for decision-making – except through sale/barter of food which is not cost-efficient to the concerned worker.

Another serious drawback of kind wages is that they hamper the mobility of workers. The Firms / employers frequently devise

“attachment” strategies to keep workers from moving out of the local labour market. In the presence of sunk costs of investment,

firms want to benefit as much as possible from their depreciating capital. Labour is needed to match the capital. Firms can attach

workers by compensating those using non-monetary forms of payment. Mobility of labour comes at a cost. The migration of

workers from the local job market to any another area with higher wages entails some cost. This cost is borne by the migrants.

When capital markets are imperfect, workers must have cash to finance the costs associated with migration, but when they are

compensated through in-kind payments or fringe benefits they are forced to consume. Kind wages are meant for consumption.

Hence, they cannot save the cash need for migration and must stay in the local market.

Furthermore, kind wages do not allow the workers to accumulate savings. Savings are must to provide against contingencies and

numerous studies exist to prove that a higher saving is associated with an increased living standard in the long run. We know that

one of the important functions performed by money is the store of value function. No other commodity or service can be used to

accumulate value. Kind payments force the workers to consume whatever has been paid. They cannot sell the kind wages usually

as substantial penalty is usually involved in this process.

Moreover there are spill over effects of saving in the cash form. For instance savings is very instrumental in promoting

entrepreneurship among women. They can pool their savings which is obviously small to form self help groups and better their

standard of living in the long run. This is not possible, if the wages the workers receive is paid in kind.

Besides there are certain spill over effects which reinforce our arguments for the cash wages. For instance, there is ample

evidence from different parts of the world that cash wage system has certain other favourable impacts. For instance, a common

finding is that cash wages to women workers in particular, enhances the anthropometric status of young children living in the

household.



Paxson and Schady (2007) found that Ecuador's \Bono de Desarollo Humano" cash wages to poor mothers has positive effects on

the physical, cognitive, and socio-emotional development of their children, with the strongest effects concentrated in the poorest

households. Schady and Rosero (2007) found that cash payments to women significantly increase the proportion of household

expenditures that go to food. Payment of wages in cash can have knock-on economic benefits for local markets and trade if the

money is spent locally, and it may stimulate agricultural production and other areas of livelihoods.

Last but not the least, kind wages show little changes over time. Monetary wages are quite flexible and frequently adjust

themselves to any changes in labour market conditions, social or cultural changes or economic changes. But the kind wages tend

to stick at subsistence level. Thus, monetary wages capture the dynamism inherent in the economic and social system. This may

be used as an indicator for planning and resource allocation-decisions. In the mainstream economics, the dominant view seems to

assume that payment in kind will disappear completely during the process of transition to a market economy. This is because

under complete markets, paying wages in cash is the most efficient in saving transaction costs since cash is the means of

exchange.

Thus, monetary wages perform many functions to increase the welfare of workers. Dominant amongst them include: providing an

unconstrained choice in choosing consumption bundle, effectively performing the store of value function, leveraging the mobility

and so on. To sum up, cash wage system can deliver measurable welfare benefits and stimulate economic growth, both through

investment in the ‘supply side’ and through stronger, steadier demand for agricultural produce.

RESEARCH QUESTIONS

In this light the present work tries to analyse the prevalence of kind wage system in the Indian labour market. It tries to investigate

into the natty gritty of this wage system with an aim to identify the variables / factors that have an important bearing on it. For

example, the mode of payment of wages may vary among various socio economic groups and across states or regions. Similarly it

may vary from sector to sector.

It is so because one is likely to find cash wages to be more prevalent in manufacturing industries rather than primary sector. On

the basis of the variations find in above analysis it will try to articulate the reasons for ongoing tradition of wage payment in kind

despite its limitations. Further it will try to document the implication of wage payment in kind for the earner as well as for its

family.

1. What are inter-state variations in the mode of payment?

2. Is there any connection between the type of sectoral employment, nature of job and the mode of payment for the women

workers?

3. What is the association between the educational attainment of the women workers and the mode of payment of wages?

4. Is the place of residence of women workers anyway related to mode of payment?

5. What is the nature of relationship among economic status, employment status of the women workers and the mode of

payment?

To find answers to the above questions analysis of secondary data has been carried out. The source of the data is the latest

National Family Health Survey which was conducted in the year 2005-06. This survey puts women at the focal point hence is

more relevant and accurate as well. NSS survey particularly employment and unemployment is a general survey and also its 68th

round is in progress. Therefore NFHS was the obvious choice. The results from the ongoing 68th round of NSS may be used to

compare the results from NFHS.

We use the occupation, mode of payment, educational attainment, nature of employment status etc, to bring out the point that

what are the factors that govern the mode of payment. And also attempt has been made to find out the linkage among these

variables, the tools like graphs, charts, tables and percentages have been used for the purpose.

DATA ANALYSIS & INTERPRETATIONS

In this section we try to explore in depth trends and facts from the data. Starting with the share of major states in the only cash and

only kind wages we proceed to analyse other relationships.

Section I: Inter- State Variations in the Mode of Payment

In the first section we attempt to analyze the variations in the mode of wage payment across various states of India. In the

following table we have presented the data for only cash and only kind wages for the major fifteen states of India.



Table-1: Type of Earning of Women’s Respondent (%) in 15 Major States of India

State Cash Only Kind Only Ranking State Cash Only Kind Only Ranking

UttarPradesh 5.64 25.87 1 Karnataka 6.66 1.09 10

Rajasthan 2.44 11.94 2 Kerela 3.21 0.27 15

West Bengal 6.05 0.9 12 Tamilnadu 7.68 0.29 14

Maharashtra 9.5 1.4 9 Orrisa 3.04 3.27 6

Madhya Pradesh 5.66 4.17 5 Bihar 1.1 6.85 3

Gujarat 3.79 1.86 7 Assam 2.82 0.44 13

Andhra Pradesh 8.28 1.02 11 Hariyana 1.08 4.41 4

Punjab 2.07 1.65 8 Total (All India) 59.23 8.18

Source: Author’s computation from the unit data of NFHS-3.

These 15 states are taken together account for more than 80% of total population of India. From the table it is clear that Uttar

Pradesh which has the largest population amongst all states also has the largest share in kind wage payment. The second and third

position is occupied by Rajasthan and Bihar respectively.

The most plausible reason for this trend is the fact that economies of all three states predominantly agricultural. Also the most

striking fact is that women in these three states are also at the lower end of development. The society’s power balance is strongly

tilted in the favour of men.

None of the above 15 states have average above the national average for only cash payment and contrary to it only two states of

Uttar Pradesh and Rajasthan have average for kind wages above the national average. All southern states have insignificant

figures for only kind wages which highlights the north south divide on this front also. Kerala, Tamil Nadu and Assam have almost

zero percentage for only kind wages. This clearly leads to the conclusion that there exists large inter -state variations in the mode

of payment. Only kind wages figures are higher in the Hindi heartland.

Section II: Nature of Job / Occupation and Mode of Payment

An important question is that has the nature of job anything to do with the mode of payment? The answer is of course yes. The

type of job undertaken and mode of payment are also associated and this relationship is shown in the following table.

Table-2: Respondent's Occupation Respondent's types of Earning for Work (In Percentage)

Cash only Kind Only Total

Professional, Techicals, Managerial 96.54 0.24 100

16.46 0.29 10.1

Clerical 97.03 0.31 100

5.25 0.12 3.2

Sales 78.72 1.13 100

8.15 0.85 6.13

Agriculture worker 27.57 15.97 100

22.18 92.92 47.66

Services 82.5 2.08 100

12.23 2.23 8.78

Skilled & Unskilled Manual 89.79 1.06 100

35.46 3.03 23.39

Total 59.23 8.19 100

100 100 100


In the above table row one shows the percentage of within respondent’s occupation cash only and kind wage payment and row

second shows cash only and kind only wage payment percentage within all types of respondent’s occupation.From a priori

reasoning it can be argued that more technical and professional is the job higher will be the cash wages proportion and vice versa

for manual labor and jobs scoring low on skill requirements.

From the above table it is clear that women workers in management and technical sector received least percentage for only kind

wages while it was highest for the agricultural -workers. Similarly the figure for only kind wages was also extremely low for

service sector employment. If we look at only kind wages the share of agricultural was about 92% which is a huge number

followed by job involving manual labor.

Thus, the actual figures support the conclusion derived theoretically. The reason being that workers in the job requiring special

skill work in organized and formal sector which is monetized sector has less scope for kind wages due to diverse needs of the

workers working there.



Section III: Educational Attainment and Mode of Payment

The second variable which influences the mode of payment is the educational attainment of the women workers. The knowledge

about association between educational attainment and the mode of wage payment is quite illuminating. The following graph

captures this relationship.

Graph-1


It will be quite correct to argue that higher the educational attainment, lower is the share of only kind wages. The reason for this

can be attributed to the fact that women with higher educational attainment take up jobs which require some sort of skill and for

which cash wages are paid as we have seen in case of association between the nature of job undertaken and cash and kind wages.

65% of all only kind wages goes to workers with no education followed by workers with incomplete secondary education as

shown in the following graph. Consequently, increasing the education level of women can eliminate the only kind wages.

Section IV: Place of Residence and Mode of Payment

An important aspect in this regard would be to analyse the impact of growing urbanisation on the mode of wage payment.

Graph-2


The graph makes it all clear that women workers in rural areas account for almost 95% of only kind wages. This fact is well

understood for the rural economy is still agriculture dominated and most kind wages are in the form of cereals. Urban employers

pay cash wages due to ease and convenience associated with it. Thus, urbanisation tends to lower the only kind wage payments.

0

20

40

60

80

100

120

No education Incomplete

primary

Complete

primary

Incomplete

secondary

Complete

secondary

Higher

Kind only

Cash Only

0%

20%

40%

60%

80%

100%

Cash only Kind only

Rural

Urban



Section V: Economic Status, Employment Status and Mode of Payment

In the last section we are going to analyse the interrelationship among economic status, employment status and mode of payment.

Economic status relates to the financial resources of the workers .This economic status is captured by wealth index. The following

graph clearly shows that as the wealth index increases from poorest to richest the percentage of only kind wages diminishes.

Graph-3


The poorest and poorer together accounts about 58% of only kind wages. If middle class is included then all three have almost

82% of the entire only kind wages in their kitty. Thus, it is clear that poorer a women, more is the probability that she is receiving

only kind wages and vice versa. The nature of employment status tells us whether the person is employed full time or is

seasonally employed. The following graph depicts the relationship between nature of employment and mode of payment.

Graph-4


The graph clearly shows that 74% of respondents receiving only cash payments were permanently employment and this

percentage was about 21 for seasonal women workers and 5 % for occasionally employed. This has clear cut message: more

seasonal and temporary is the nature of employment status greater will be the share of kind wages. In India, the earnings made by

women are treated as supplementary sources of income for the family and not the primary source, which is contributed by the

male members of the family. That is the reason why they take up seasonal jobs as well to tide over temporary financial crisis or to

earn some extra for the family. This in turn raises the percentage for kind wages.

CONCLUSIONS

From the empirical analysis of the data on cash and kind wages we can deduct many conclusions. The most important conclusion

is that mode of wage payment is significantly influenced and affected by a number of variables but notable amongst them includes

the educational attainment of the worker and nature of job undertaken. The finding that only kind wages are positively associated

with the low educational level of the women workers infers towards the need for raising the literacy among women workers as

well as improving their access to higher education.

The study clearly indicates that cash wages are more prevalent in jobs requiring some sort of skill. Similarly, states with more

rigid patriarchal value have higher only kind wages percentages than the societies with liberal views. So we can safely conclude

0

5

10

15

20

25

30

35

40

45

50

Poorest Poorer Middle richer Richest

Kind Only

Cash Only

0%

20%

40%

60%

80%

100%

All year Seasonal Occasional

Kind Only

Cash Only



that improving the welfare of women workers requires that the only kind wages be totally replaced by cash wages and educational

attainment and skill enhancement of the women workers will be instrumental in achieving this goal. So, Indian government &

state government and related agencies should provide the sufficient education, managerial skills, technical and financial support,

proper motivation, foresight, infrastructure facilities and training, job security for improving the condition of women worker’s in

labor market. It is also necessary to institutional reform for welfare and overall development of Indian women.

REFERENCES

1. Besley, Timothy J., and Coate Stephen, (1991). "Workfare versus Welfare: Incentive Arguments for Work

Requirements in Poverty Alleviation Programs", John M. Olin Program for the Study of Economic Organization and

Public Policy at Prince-ton University Discussion Paper No. 73.

2. Blackorby, Charles, and Donaldson, David, (1988). "Cash versus Kind, Self-Selection, and Efficient Transfers,"

American Economic Review, September, 78, 691-700.

3. Coate, S., (1989). “Cash versus Direct Food Relief", Journal of Development Economics, 30 (2), 199-224.

4. Currie, J., and F. Gahavari, (2007). “Transfers in Cash and In-Kind: Theory Meets the Data”, National Bureau of

Economic Research, Working Paper 13557.

5. Dreze, Jean P., (1990). "Famine Prevention in India," in Jean P. Dreze and Amartya K. Sen, eds., Hunger: Economics

and Policy, Oxford: Oxford University Press, pp. 13-122.

6. Schady, N., and Rosero, J., (2007). “Are Cash Transfers Made to Women Spent like Other Sources of Income?”, Policy

Research Working Paper 4382. Washington, DC: World Bank.

7. Schady, N., and Rosero, J., (2007). “Do Cash Transfers to Women Affect the Composition of Expenditure? Evidence on

Food Engel Curves in Rural Ecuador”, World Bank Policy Research Working Paper 4282.

8. Sen, Amartya, (1987). “Commodities and Capabilities”, OXFORD University Press; Bombay, Calcutta, Madras.

9. Zeckhauser, Richard J., (1971). "Optimal Mechanisms for Income Transfer," American Economic Review, June, 61,

324-34.

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CORPORATE SOCIAL RESPONSIBILITY

FROM AN ETHICAL LEADERSHIP PERSPECTIVE

A. Suryanarayana13 Bandaru Srinivasa Rao14

ABSTRACT

A leader’s quintessential responsibility is to influence the key people to think and act in ways that benefit his organization in

an ethical and socially responsible manner. A starting point in choosing influence tactics to help managers lead others is to

select those that fit his ethical code. Leadership is intrinsically an influence process. Another major consideration is to choose

the correct combination of influence tactics. To become an effective leader, a person must be aware of the specific tactics

leaders use to influence others.

This Paper presents a description and explanation of influence tactics, both ethical and less ethical, and a summary of research

about the relative effectiveness and sequencing of influence tactics. Influence tactics are often viewed from an ethical

perspective and can be classified into those that are essentially ethical and honest versus those that are essentially manipulative

and dishonest. Leaders have to develop guidelines, or ethical screens, to help the influence agent decide whether a given act is

ethical or unethical.

Some leadership tactics are clearly ethical, but others are clearly unethical. Used with tact, diplomacy, and good intent, ethical

influence tactics can be quite effective. Essentially, ethical tactics include leading by example, rational persuasion, developing

reputation as an expert, etc. One of the ethical and social responsibility goals of leaders and their organizations includes

providing adequately for members of the diverse work force.

Ethics is involved because treating people fairly is considered morally right from the deontological view of ethics. It is based

on universal principles such as honesty, fairness, justice, respect for persons and property. Leaders who ascribe to this view of

ethics would therefore feel compelled to use merit as a basis for making human resource decisions.

This paper tries to explain the potential ethical and competitive advantage from leading and managing diversity.

KEYWORDS

Influence Tactics, Ethical and Unethical Tactics, Sequencing of Influence Tactics, Deontological View of Ethics, and

Ethical Advantage etc.

INTRODUCTION

A leader’s quintessential responsibility is to influence the key people to think and act in ways that benefit his organization in an

ethical and socially responsible manner. A starting point in choosing influence tactics to help managers lead others is to select those

that fit his ethical code. Leadership is intrinsically an influence process. Another major consideration is to choose the correct

combination of influence tactics. To become an effective leader, a person must be aware of the specific tactics leaders use to influence

others. Influential tactics are often viewed from an ‘ethical’ perspective.

Following this perspective, the tactics described in the Paper are classified into those that are essentially manipulative and

dishonest and those that are essentially ethical and honest. Several guidelines, or ethical screens, have been developed to help the

influence agent decide whether a given act is ethical or unethical.

The Centre for Business Ethics at Bentley College has developed six questions to evaluate the ethics of a specific decision. Before

engaging in a particular influence act or political tactic, a person should seek answers to the following questions: a) Is it right?

(Based on absolute principles of moral rights), b) Is it fair? (Based on absolute principles of justice), c) Who gets hurt? (The

fewer the better), d) Would you be comfortable if the details of your decision or actions were made public in the media or

through electronic mail? (Based on the principles of disclosure), e) What would you tell your child, sibling, or young relative

to do? (Based on the principles of reversibility), and f) How does it smell? (Based on common sense and intuition) 1.

However, we have to keep in mind that the categorization presented here is far from absolute. Except for the extremes, most of the

tactics could conceivably be placed in either category, depending on how they are used. For example, the tactic, “joking and

kidding” can be either good-spirited or mean-spirited and hence could be classified in any way: “essentially ethical” or

“essentially unethical”.

13 Professor, Department of Business Management, Osmania University, Andhra Pradesh, India,

[email protected] 14 Professor & HOD, Department of MBA, QIS College of Engineering & Technology, Andhra Pradesh, India,

[email protected]





ESSENTIALLY DISHONEST AND UNETHICAL TACTICS

The tactics to be described in this section are less than forthright and ethical, yet they vary in intensity with respect to dishonesty.

Most people would consider the first four influence strategies presented here as unethical and devious, yet they might regard the

last five tactics still as still within the bounds of acceptable ethics, even though less than fully candid.

Deliberate Machiavellianism

People in the workplace who ruthlessly manipulate others have therefore come to be called Machiavellians. They tend to initiate

actions with others and control interactions. Machiavellians regularly practice deception, bluff, and other manipulative tactics.2

Gentle Manipulation of People and Situations

Some people who attempt to influence others are manipulative, but to a lesser extent that an outright Machiavellian. By making

untrue statements or faking certain behaviors, they gain the compliance of another person.

Undue Pressure

Effective leaders regularly use motivational techniques such as reward and mild punishments. Yet rewards become bribes for

compliance, and threats of punishment become severe, the target person is subjected to under pressure or coercion. Several

specific behaviors labeled coercive in a research study were as follows: I demand that she do it; I yell at her until she does it; I

criticize her for not doing it; I curse at her until she does it; and I threaten her with something if she doesn’t do it.3

Game Playing

Leaders, as well as others, often play games in order to influence others. A game in this context is a repeated series of exchanges

between people that seems plausible but has a hidden agenda or purpose. Influence is exerted in a game because the person whom

the game is played against is made to feel humble.

Blemish

Blemish is an example of a simple game often used by managers to keep team members in line. One-time transactions between

the influence agent and the influence target sometimes resemble a game. One such tactic is the door-in-the face technique. The

person attempting to exert influence makes a major request that will most likely be rejected. Shortly thereafter a more modest

request comes, which was really intended in the first place.4

Debasement

A subtle manipulative tactic is debasement, demeaning or insulting oneself to control the behavior of another person. Specific

debasing tactics revealed by research include: I allow myself to be debased so she’ll do it, (ii) I lower myself so she’ll do it, and

(iii) I act humble so she’ll do it.5

Upward appeal

In upward appeal, the leader exerts influence on a team member by getting a person with more formal authority to do the

influencing. The target of the influence event is supposed to grant acceptance automatically. Or the leader can request higher

management’s assistance in gaining another person’s compliance with the request. The influence target thus feels pressured.6

Silent Treatment

A leader uses the silent treatment through saying nothing, sulking, or other forms of passivity until the influence target complies.

Research questionnaire items related to sulking are (i) I don’t respond to him until he does it, (ii) I ignore him until he does it, (iii)

I am silent until he agrees to do it, and (iv) I refuse to do something he likes until he does it.7

Ingratiation, Charm, and Appearance

Getting somebody else to like you can be considered a mildly manipulative influence tactic—particularly if you do not like the

other person. Ingratiating tactics identified in a study about influence tactics included: (i) Made him or her feel important, (ii)

Acted very humbly toward him or her while making my request, (iii) Praised him or her, (iv) Sympathized with him or her about

the added problems that my request caused, (iv) Waited until he or she appeared in a receptive mood before asking, (v) Asked in a

polite way, (vi) Pretended I was letting him or her decide to do what I wanted, and (vii) Acted in a pseudo-democratic manner.8

ESSENTIALLY ETHICAL AND HONEST TACTICS

This section describes essentially ethical and honest tactics and strategies for influencing others. Used with tact, diplomacy, and

good intent, these strategies can facilitate getting others to join you n accomplishing a worthwhile objective.



Leading by Example

The ideal approach to this is to be a “do as I say and do” manager—that is, one whose actions and words are consistent. Also,

actions and words confirm, support, and often clarify each other.9

Rational Persuasion

Rational persuasion is an important tactic for influencing people. It involves using logical arguments and factual evidence to

convince another person that a proposal or request is workable and likely to result in goal attainment.10

Exchange Favors and Bargaining

“At any level, it’s a matter of knowing who needs you and whom you need. You should build good will. If you are a middle

manager, look around you. You interact with a money specialist, with a lawyer, with a variety of operations people. Use them and

let them use you.”11

Developing a Network of Resource Persons

Networking is an important strategy for career management, including becoming an influential person. The ability to establish a

network and call on support when needed helps a manager or professional exert influence.12

Legitimating a Request

To legitimate is to verify that an influence attempt is within your scope of authority and to show that your request is consistent

with organizational policies, practices, and expectations of professional people that others are willing to comply with. According

to research conducted by Gary Yukl, behavior intended to establish the legitimacy of a request includes: (i) Providing evidence of

proper precedent (ii) Showing consistency with organizational policies that are involved in the type of request being made (iii)

Showing consistency with the duties and responsibilities of the person’s position or role expectations (iv) Indicating that the

request has been endorsed by higher management or by the person’s boss.13

Inspirational Appeal and Emotional Display

A leader is supposed to inspire others, so it follows that this becomes an important influence tactic. As Jeffrey Pfeffer notes,

“Executives and others seeking to exercise influence in organizations often develop skill in displaying, or not displaying, their

feelings in a strategic fashion.”14

Consultation

Consulting with others before making a decision is both a leadership style and an influence technique. Yukl explains that

consultation is most effective as an influence tactic when the objectives of the person being influenced are consistent with those of

the leader.15

Forming Coalitions

A coalition is a specific arrangement of parties working together to combine their power. It works well as, to quote an old adage,

“there is power in numbers.” Coalitions in business are a number game—the more people you can get on your side, the better.

Team Play

Influencing others by being a good team player is an important strategy for getting work accomplished. Team play, along with

logic or reason, is the most frequently used tactic by men and women and gets endorsed more frequently than other tactics such as

personal charm, manipulation, personal appearance, assertiveness, exchange of favors, and upward appeal.16

RELATIVE EFFECTIVENESS AND SEQUENCING OF INFLUENCE TACTICS

Although influence tactics are descried separately, they must also be understood in relation to one another. Two ways of

comparing influence tactics is to examine their relative effectiveness and the order in which they might be used to achieve the best

result. Influence tactics are a major component of ethical leadership. Research about their relative effectiveness is therefore worth

noting. A study by Gary Yukl and J. Bruce Tracey provides insights about this aspect.17

The research study has defined for the participants eight tactics viz. rational persuasion, inspirational appeal, consultation,

ingratiation, exchange, personal appeal, coalition, legitimating, and pressure. An effective tactic was defined as one that led to

task commitment, and that was used by managers who were perceived to be effective by the various raters. The results suggested

that the most effective tactics were rational persuasion, inspirational appeal, and consultation. In contrast, the least effective were

pressure, coalition, and appealing to legitimate authority (legitimating). Ingratiation and exchange were moderately effective for

influencing team others and peers.



The same tactics, however, were not effective for influencing superiors. Inspirational appeal, ingratiation, and pressure were used

primarily in a downward direction. Personal appeal, exchange, and legitimating were used primarily in a lateral direction. It was

also found that coalitions were used most in lateral and upward directions, and that rational persuasion was used most in an

upward direction.

The Sequencing of Influence Tactics

Another important consideration in using influence tactic is the sequence or order in which they should be applied. In general,

begin with the most positive, or least abrasive, tactic. If you do not gain the advantage you seek, proceed to a stronger tactic.

Abrasive tactics trigger revenge and retaliation. In some situations, although the ‘appeal’ tactic is legally justified, it may be

politically unwise. Similarly, the sequencing of tactics can also be considered in terms of cost and risk. A sensible approach is to

begin with low-cost, low-risk tactics. Some research evidence supports the importance of sequencing of influence attempts.

Significant differences were found for: (i) Rational persuasion, Ingratiation, and Personal appeal are used more for an initial

request (ii) Exchange is used more for immediate follow-up (iii) Coalition formation is used more for delayed follow-up (iv)

Legitimating is used most for immediate follow-up, and (v) Undue pressure is used most for delayed follow-up.18

ETHICAL AND SOCIAL RESPONSIBILITY GOALS OF LEADERS

The ethical and social responsibility goals of leaders and their organizations include providing adequately for members of the

diverse work force. Ethics is involved because treating people fairly is considered morally right from the deontological view of

ethics. The deontological approach is based on universal principles such as honesty, fairness, justice, and respect for persons and

property. Leaders who ascribe to this view of ethics would therefore feel compelled to use merit as a basis for making human

resource decisions.

A firm that embraces diversity is also behaving in a socially responsible manner. Both ethics and social responsibility relate to the

goodness and morality of leaders and organizations, but social responsibility is a broader concept that relates to an organization’s

impact on society, beyond doing what is legal or ethical. An important goal of Ethical leadership is for people from varied

backgrounds to be able to work together smoothly.

They should make an effort to include everyone in social functions. Leaders demonstrate their commitment to an ethics driven

diverse workplace by not playing favorites and by treating all employees with respect and understanding, including giving them

honest feedback. If the leader assumes that someone cannot perform well because of a cultural stereotype, he is depriving that

person of a chance to improve and excel.

CONCLUDING REMARKS

A starting point in choosing influence tactics to help you lead others is to select those that fit your ethical code. For example, a

person might say, “Being a team player and ingratiation fit my ethics, but I can’t use undue pressure.” Another major

consideration is to choose the correct combination of influence tactics. You must choose these tactics carefully on the basis of the

influence target and your objectives. For example, ingratiation and joking and kidding might not work well with superiors. Quite

often, it is best to begin with gentle influence tactic, and then strengthen your approach as needed. In olden days, this was referred

to as tightening the thumbscrews! Keys and Case found that most first influence attempts by managers involved gentle approaches

such as requests or logical persuasion. Later attempts included firmer tactics when the influence target was reluctant to comply.20

A person must also choose influence tactics to fit the influence objectives. Kipnis and his associates have observed that managers

should not rely on a single influence tactic, such as assertiveness, to achieve both organizational and personal objectives. It may

be appropriate to insist that one’s boss be mindful of cost overruns. It is inappropriate, however, to insist that one be granted time

off to golf with network members.21

Good communication skills are required to implement influence tactics. As Keys and Case note, “Managers who choose rational

ideas based on the needs of the target, wrap them with a blanket of humor or anecdotes, and cast them in the language of the

person to be influenced, are much more likely to see their influence objectives achieved.”22

REFERENCES

1. James, L. Bowditch, and Anthony F. Buono, A Primer of Organizational Behavior, 4th ed. (New York: Wiley, 1997),

pp. 4-5.

2. Bernard, M. Bass, Bass & Stogdill’s Handbook of Leadership: Theory, Research, & Managerial Applications, 3rd ed.

(New York: The Free Press, 1990), p. 134.

3. David M. Buss; Mary Gomes; Folly S. Higgins, and Karen Lauterbach, (1987). “Tactics of Manipulation,” Journal of

Personality and Social Psychology, December, p.1222.

4. Chad, T. Lewis; Joseph E. Garcia, and Sarah M. Jobs, Managerial Skills in Organizations (Boston: Allyn & Bacon,

1990), p.234.



5. Buss et al., “Tactics of Manipulation,” p.1222.

6. Gary, Yukl, and Cecilla M. Falbe, (1990). “Influence Tactics and Objectives in Upward, Downward, and Lateral

Influence Attempts”, Journal of Applied Psychology, April, p. 133.

7. Buss et al., “Tactics of Manipulation,” p.1222.

8. David, Kipnis, and Stuart M. Schmidt, (1980). “Intraorganizational Influence Tactics: Explorations in Getting One’s

Way”, Journal of Applied Psychology, August 1980, p.445.

9. R. Bruce McAfee, and Betty J. Ricks, (1986). “Leadership by Example: ‘Do as I Do1’” Management Solutions, August,

p. 10.

10. Gary, Yukl, and J. Bruce Tracey, (1993). “Consequences of Influence Tactics Used with Subordinates, Peers, and the

Boss”, Journal of Applied Psychology, 23, 17, pp. 1407-1425.

11. “Build Power and Influence,” Executive Strategies, June 19, 1990, p.6.

12. Adapted from ibid., pp.45-46.

13. GaryYukl, Skills for Managers and Leaders: Text, Cases, and Exercises (Englewood Cliffs, N.J.: Prentice Hall, 1990),

pp.58-62.

14. Jeffrey Pfeffer, Managing with Power: Power and Influence in Organizations (Boston: Harvard Business School Press,

1992), p.224.

15. Yukl, Skills for Managers and Leaders, p. 65.

16. Andrew J. Dubrin, (1989). “Sex Differences in Endorsement of Influence Tactics and Political Behavior Tendencies”,

Journal of Business and Psychology, Fall, p.10.

17. Yukl and Tracey, “Consequences of Influence Tactics”, pp. 525-535.

18. Yukl, Leadership in Organizations, p. 234.

19. Gregory M. Bounds, Gregory H. Dobbins, and Oscar S. Fowler, Management: A Total Quality Perspective (Cincinnati:

South-Western College Publishing, 1995).

20. Keys and Case, “How to Become an Influential Manager”, p.46.

21. Kipins, David, and Stuart M. Schmidt, (1988). “Upward Influence Styles: Relationships with Performance Evaluations,

Salary, and Stress”, Administrative Science Quarterly, pp.528-542.

22. Keys and Case, “How to Become an Influential Manager,” p.48.

*****

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ADOPTION OF PERSONAL STRATEGIES FOR SELF-EMPOWERMENT AT WORKSPACE -

A CASE OF TELECOM SECTOR OFFICES IN ASSAM

Arup Barman15 Subhasish Biswas16

ABSTRACT

Personal empowerment is an important element for ensuring business success at personal level in the organization. In case of

telecom operators in the local market personal and managers have to work independently. In this context empowerment plays

vital role. This paper explains the levels of personal empowerment of the telecom managers in regional context of Assam,

India. The study gives a snapshot scenario on the approaches to assess personal empowerment in telecom industries operating

in the North East Indian geographical location.

KEYWORDS

Empowerment, Telecom, Organization, and HRD etc.

INTRODUCTION

In today's rapid changing corporate world, reliability to organizations is fading fast, and empowerment has been growing by

companies to retain employees. Factors such as downsizing, introduction of self-managed teams, higher employee skills and

introduction of total quality management (TQM) programs also contributed to the trend for managers to welcome empowerment.

Empowerment is defined as “the freedom and the ability of employees to make decisions and commitments” (Robbins, 2003)1. In

other words, it means giving employees the authority, opportunity, and motivation to take initiative to solve organizational

problems.

Personal empowerment, in its most basic definition, is effective delegation. The new twist that upper management has been trying

desperately to achieve is to involve the lowest level of employees in the decision-making process while making them responsible

for the results of their decisions. There have been many documented examples of anxiety, mistrust and complacency in employees

when this wave of "new-and-improved, successful management strategies" has been suddenly thrown upon them. Change of any

kind will usually inspire resistance, especially when powers are extracted from management to place in the hands of employees.

A primary goal of employee empowerment is to give workers a greater voice in decisions about work-related matters. Their

decision-making authority can range from offering suggestions to exercising veto power over management decisions. Possible areas

include: how jobs are to be performed, working conditions, company policies, work hours, peer review, and how supervisors are

evaluated.

CONCEPTION AND REVIEW

Empowerment is the process of releasing the full potential of employees to take on greater responsibility and authority in the

decision making process and providing the resources for this process to occur. Empowerment is not a new idea; the term has gained

its place from 1970s onwards. The literature reviewed suggests that empowerment and leadership are essential for achievement of

maximum organizational potential. Participative management has become a key word for empowerment. Research has shown that

there is a positive link between participation and satisfaction, motivation and performance. Empowerment works the best when

employees need their organization as much as the organization needs them, "and the need is much more than a pay check and the

benefit package".

Empowerment is a key issue stressed by leading social psychologist Abraham Maslow who used the term “I am part of a group” as

the basis of his hierarchy of needs that contributes towards one’s growth by driving one to become what one is capable of

becoming. This self-actualization need is the essence of empowerment. In 1978, McKinsey showed “Shared Values”2 at the heart of

his grid in his 7S model and the Theory Y of Douglas McGregor, leaving least interference or role for management to involve

workers, rests the responsibility of participation and performance totally on the worker.

The common dictionary definition of empowerment, "to give official authority to: delegate legal power to: commission,

authorize" (Grove, 1971)3 is the one most understood by most people. As an example, Gandz (1990)4 writes, "Empowerment

means that management vests decision-making or approval authority in employees where, traditionally, such authority was a

managerial prerogative". However, this is not the definition of what is usually called employee empowerment. One author notes

empowerment is, “easy to define in its absence - alienation, powerless, helplessness - but difficult to define positively because it

'takes on a different form in different people and contexts'” (Zimmerman, 1990)5. When most people refer to employee

empowerment they mean a great deal more than delegation. It is for this reason that many authors provide their own definitions.

Some of these are vague, and meant to be so. Block (1987)6 describe empowerment as "a state of mind as well as a result of

position, policies, and practices". One has to read an entire chapter to understand what he means when he says, "to feel

15Department of Business Administration, Jawaharlal Nehru School of Management Studies, Assam University, Assam, India,

[email protected] 16Student, Department of Business Administration, Assam University, Assam, India.




empowered means several things. We feel our survival is in our own hands...., we have an underlying purpose…., we commit

ourselves to achieving that purpose, now" (Block, 1987). Other authors (Blanchard, Carlos & Randolph, 19967; Blanchard &

Bowles, 1998)8 use their entire book to define empowerment. Still others provide an excellent perspective of effective

empowerment without mentioning the word even once (Freedman, 1998) 9.

Other author provided definitions are simplistic on the surface, but have far greater implications than a first reading would

suggest. For example, Cauldron10 (1995) articulates empowerment as, "when employees 'own' their jobs; when they are able to

measure and influence their individual success as well as the success of their departments and their companies."The casual reader

may think that owning one's job is what the postal workers union seeks to provide their members. Most would agree, however,

that job security is not empowerment. Many employees must measure their jobs by submitting reports. Seeking one's own

individual success is what the American dream is all about; and knowing that one makes a contribution to the success of the

department and the company is a given in all but the largest organizations. It is only when these ideas are taken together in one

package that they approach a definition of employee empowerment. Ettorre's (1997)11 definition of empowerment as, "employees

having autonomous decision-making capabilities and acting as partners in the business, all with an eye to the bottom-line" is more

accessible to many readers. While many employees understand their contribution to the work at hand, how many know their

contribution to the bottom line?

It is this essential ingredient, information with which to make decisions, from which empowerment is created. Bowen and Lawler

(1992)12 indicate, "we define empowerment as sharing with front-line employees four organizational ingredients: [the first being]

information about the organization's performance…, [another is] knowledge that enables employees to understand and contribute

to organizational performance". The other two ingredients Bowen and Lawler note are, "rewards based on the organization's

performance [and] power to make decisions that influence organizational direction and performance." In a later article these

authors conclude that, "research suggests that empowerment exists when companies implement practices that distribute power,

information, knowledge, and rewards throughout the organization.

Researchers tend to provide definitions of empowerment which reflect observed end results or their research into concepts which

are known and are or may be precursors to empowerment. In his 1995 dissertation, Menon indicated, "the empowered state was

defined as a cognitive state of perceived control, perceived competence and goal internalization…., the empirical results

supported the view that empowerment is a construct conceptually distinct from other constructs such as delegation, self-efficacy

and intrinsic task motivation.” In this case the constructs of delegation, self-efficacy and intrinsic task motivation are known

quantities, each with its own previously tested validity.

Conger and Kanungo (1988)13 note in their literature review that, "scholars have assumed that empowerment… [is] the process by

which a leader or manager shares his or her power with subordinates. Power in this context, is interpreted as the possession of

formal authority or control over organizational resources….., this manner of treating the notion of empowerment from a

management practice perspective is so common that often employee participation is simply equated with empowerment".

However, they also note, “We believe that this approach has serious flaws”. Instead, the authors offer this definition,

"Empowerment is….a process of enhancing feelings of self-efficacy among organizational members through the identification of

conditions that foster powerlessness and through their removal by both formal organizational practices and informal techniques of

providing efficacy information".

In her excellent literature review of employee empowerment, Linda Honold indicates, "to be successful, each organization must

create and define it [empowerment] for itself. Empowerment must address the needs and culture of each unique entity" (Honold,

1997)14.

Henkel et al., 199315, designed an “Empowerment Readiness Survey” consisting of ten statements that addressed six dimensions

of empowerment, which are as follows:

I. Communication

How is information communicated? What is the tone behind the message? How much information is communicated?

II. Value of People

Are people and their ideas valued in the organization? How is this shown? How do people respond to out of the

ordinary ideas?

III. Ambiguity

Is there tolerance for ambiguity? How do people respond to trial and error?

IV. Concept of Power

How is power perceived in the organization? Is it shared? What level of power is being distributed?



V. Information

Are people willing to share what they know with others? Is there trust?

VI. Learning

Is the organization a learning organization or is it a business as usual?

It is in this spirit that I offer my own definition of personal empowerment, drawn on several of the authors noted above:

Personal empowerment is a process whereby: a culture of empowerment is developed; information—in the form of a shared

vision, clear goals, boundaries for decision making, and the results of efforts and their impact on the whole—is shared;

competency—in the form of training and experience—is developed; resources, or the competency to obtain them when needed to

be effective in their jobs, are provided; and support—in the form of mentoring, cultural support, and encouragement of risk-

taking—is provided.

RELEVANCE OFSTUDY

Personal empowerment is an important element for ensuring business success at personal level in the organization. In case of

telecom operators in the local market personal and managers have to work independently. How do the telecom players are

operating? Whether the telecom operators use any specific personal empowerment and whether are there any differences in the

level of personal empowerment in organization to organization. To get a snapshot scenario on the approaches on personal

empowerment in telecom industries operating in the North East Indian geographical location a systematic study is required.

OBJECTIVES OF STUDY

1. To determine the levels of personal empowerment among different group of employees at various telecom service

providers in Silchar.

2. To identify the popular personal strategies among the different groups of employees working in telecom sector in

Silchar.

RESEARCH ASSUMPTIONS

Since the geographical area where study is conducted is limited to Southern Assam, hence managerial style and operational policy

of the selected telecom player (Operators) cannot have significant difference in the level of personal empowerment. Hence it is

hypothesized that there are no significant different in level of person empowerment. It is assumed that the strategies adopted for

personal empowerment are similar among the managers of different company.


Research Design

The Research Design used in my study is the ‘Descriptive Research Design’, as it describes the data and characteristics about a

population. This Research Design has given me scope to explore certain existing phenomena in the Telecom Service Providers, at

Silchar.

It does not involve experimentation and makes no attempt to reach to conclusions or make inferences from the collected data. The

research is made clear by presenting quantitative information in a manageable form and finally providing simple summaries. The

study can however; illuminate promising areas for future research and assist in the generation of hypothesis that can be later tested

by means of alternate methods.

Sources of Data

Data for my study has been obtained from dual sources:

Primary Data is collected from the employees of various telecom service providers in Silchar through

questionnaire.

Secondary Data is collected from magazine, text books, journals, library sources and internet.

Sampling Plan

As the total population of managers of telecom operator of this sector in South Assam, who are dwelling in Silchar town are

around 150 numbers. Out of them, 80 managers were selected from the various telecom service providers in Borak Valley

(Southern Assam).




A questionnaire has been designed, containing close ended questions. While designing questionnaire, ‘Close-ended Questions’

seven point Likert Scale have been framed.

ANALYSIS AND FINDINGS

The levels of personal empowerment were assesses through processed data showed in the table1.

Table-1: Levels of Personal Empowerment

Name of

Company

Level of Personal

Empowerment among

Employees (Average Value)

Analysis/ Interpretation General Remarks

IDEA 0.79 (+ tive)

Since the figure is between 0 and 1 signifying 'Neutral' to

'Agree' and on a higher range, we assume that personal

empowerment levels among employees of IDEA is moderate, and company will have to take more initiatives

for further improvement of empowerment level.

Overall, we remarkably

find that all the companies have adopted some

technique or the other for

empowering their employees. The levels of

implementation however

vary between companies to company. On the other

hand, it is also to note that

none of the companies have reached to the

maximum level among

employee empowerment. Therefore, scope of further

improvement is

undeniable.

VODAFONE 1.01 (+tive)

Since the figure ranges between 1 and 2 signifying 'Agree'

to 'Strongly Agree', we assume that personal

empowerment levels among employees of VODAFONE is fair enough and proper initiatives are taken by the

company.

AIRTEL 1.42 (+tive)


to 'Strongly Agree', we assume that personal empowerment levels among employees of AIRTEL is

quite good and correct measures are taken by the company

to improve further of empowerment level.

AIRCEL 1.29 (+tive)



empowerment levels among employees of AIRCEL is good enough and sufficient initiatives are taken by the

company.

BSNL 1.15 (+tive)



empowerment levels among employees of BSNL is good

and appropriate initiatives are taken by the company for enhancement.

Graph-1

0.791.01

1.42

0.23

1.29 1.15

Level of Personal Empowerment among Employees (Average Value)



Personal Empowerment Strategies Adopted by IDEA

Several empowerment strategies are adopted by IDEA among which buy-in strategy was most significant: by involving the

employees in the design of their empowerment initiative, it becomes theirs. The teams always outperform the individual and they

develop a powerful empowerment model. Or else they could have wasted a lot of time and develop model in secret; the

employees feel that the program is moderated and controlled right from the beginning.

Personal Empowerment Strategies Adopted by Vodafone

It is reported that communication as a security blanket used by Vodafone as personal empowerment strategies— it allows building

confidence in the system. In workplace, we require feedback in terms of how the system is working and what tangible results are

being produced. With this information, the organization comes to know what is working and what needs to be fixed. Although

employees may resist, organization prefers too much information rather than too little.

Personal Empowerment Strategies Adopted by AIREL

Young team - Average age is 26years. Employees decide their training needs. A state-of-the-art learning centre and training

practices adopted from British Telecom PACE (Progressive Assessment of Culture and Environment) feedback taken from

employees used for company’s personal empowerment strategy for employees.

Personal Empowerment Strategies Adopted by Reliance

The employees of reliance in Silchar understand that empowerment is not a right; it is a privilege. It is earned through

performance and accountability to the system and the supervisor. Within this framework, the study revealed that personal

empowerment strategies adopted by Reliance was ownership which is strengthened when each employee has a piece of the pie.

The piece of the pie is determined through individual capacity and performance. In addition to that component of the work that

the manager believes the individual can handle. When work is successfully completed, the employee deserves recognition — from

managers, from peers, from other organizations and from senior management. This sends the message to employees that they are

valued, not just by the manager but also by the organization. Employees who are recognized will commit more strongly to the

empowerment model they have developed.

Personal Empowerment Strategies Adopted AIRCEL

Raising concerns and fears with employees as when developing the model; of course, this presumes that they have not

demonstrated their competence by already highlighting any red flags that would need a boundary. Empowering department heads

to deal with staffing issues in their areas; when a need for an absence arises, require all employees to directly contact their

department head by phone (or now text), using the impersonal e-mail only where there is no other option; and have department

heads report weekly or even monthly on staffing shortages or the effectiveness/ abuse of the system.

Personal Empowerment Strategies Adopted BSNL

BSNL empowering people to do their best being flexible to adapt to the changing environment and evolving customer needs

making it happen by striving to change the status quo, innovate & energize new ideas with a strong passion & entrepreneurial

spirit, openness and transparency with an innate desire to do good and creating Positive Impact with a desire to create a

meaningful difference in society.

CONTRIBUTIONS AND LIMITATIONS OF STUDY

Right from the beginning, your staff should understand that the nature and degree of empowerment either to the team or to

individuals is subject to change. There are times when changes will be dictated merely by a clumsy model; at other times, changes

will be necessitated by poor performance in telecom sectors.

Thus, from this study, found a snapshot view about the different approaches adapted by telecom service providers’ regarding

personal empowerment among the employees and the level to which they are correlated with the demographic factors taken into

consideration. But a detailed and broad area research is very much expected in future for further study.

The study gives a snapshot scenario on the approaches to assess personal empowerment in telecom industries operating in the

North East Indian geographical location. Hence, identifying the usage, relevance and flaws of the assessment may not suffice to

entire organizations included in this study.

The respondents might have failed to focus on in-depth understanding of the objective of assessment, and may not have

necessarily reflected to the approach adopted. Conclusions drawn are specific to employee empowerment at various telecom

service providers in Silchar itself. Thus, the findings cannot be generalized to the overall employee empowerment of entire

telecom industry. Due to shortage of time and resource the study could not reach to the mark of satisfaction.



CONCLUSIONS

We see that shared values are right at the heart of McKinsey’s 7S model, as early as 1978, although not in the same terminology.

It was recognized that shared values that bring about a sense of ownership is important for an organization to gain competitive

advantage in the regional context of operating telecom industries. This is a neglected area for the company, needs to be addressed

if the organization intends to remain a key market player in the telecom industry in India. Reward systems exist in all

organizations, but rewarding “educated risk-taking” is unheard of. Risk is essential for innovation to survive in organizations.

Empowered style is best suited when lots of small continuous innovations and flexible responses are required; these are the

components to gaining competitive advantage. The organizations need to come up with innovative market strategies and need to

keep their customers happy. For this it is suggested that the organizations need to be customer-centric, and empower their

frontline managers as demonstrated by Ritz-hotel.

The organization structure must be flexible to bring company wide quality and also to maintain a competitive edge over its

competitors. Social and cultural dynamics of India require that participative management style is adapted to its unique

characteristics. It is concluded, that success of an organization is only achievable when the goals are clearly defined and all its

employees are motivated to achieve the common objective. It is found that motivation is best when it comes from within the

group – which is only achievable when teams are empowered not only individuals but self.

Quality in telecom management is a key challenge that must be considered from a strategic point of view, and includes such

dimensions as organizational vision, values, attitude, policy planning, leadership, and the pursuit of excellence through continuous

improvement. It is, therefore, of utmost importance that telecom service providers understand and implement this broader

dimension of quality. The advantages of empowerment clearly outweigh the disadvantages for any organization.

REFERENCES

1. Politis, J. D., (2006). “Self-Leadership Behavioural-Focused Strategies and Team”,

www.emeraldinsight.com/journals.htm?articleid=1554353&show.

2. “7-S Framework of McKinsey”, www.vectorstudy.com/management_theories/7S_framework.htm.

3. Martin, I. Jessica, (2011). “Running Head: Theoretical1 Theoretical Framework”, p. 744; at url:

www.studentoffortune.com/question/854121/...a.../1381905-IP%202.do.

4. Gandz, J., (1996). “The Ethics of Empowerment”, www.jstor.org/stable/25072762.

5. Zimmerman, B. J., (1990). “Self-regulated Learning and Academic Achievement: An Overview”, Educational

Psychologist, 25, 3-17.

6. Block, (1987). Empowerment, and Organizational Politics Perceptions, p. xvii

7. Blanchard, K.; Carlos, J., and Randolph, A., (1996). Empowerment Takes More Than a Minute, San Francisco: Berrett-

Koehler.

8. Blanchard, Kenneth H., and Sheldon Bowles, (1998). Gung Ho!, William Morrow and Company, Inc., NY.

9. Freedman, A. M., (1998). “Pathways and Crossroads to Institutional Leadership”, Consulting Psychology Journal,

50(3), 131‐151.

10. At, J. Fox, (1998), “Employee Empowerment: An Apprenticeship Model”, http://members.tripod.com/j_fox/thesis.html.

11. Ettorre, Barbara, (1997). “The Empowerment Gap: Hype vs. Reality”, BRFocus, 62, pp. 4-6.

12. Fox, John, (1998). “Employee Empowerment: An Apprenticeship Model”, http://members.tripod.com/j_fox/thesis.html.

13. Conger, J. A., and Kanungo, R. N., (1988). “The Empowerment Process: Integrating Theory and Practice”, Academy of

Management Review, 13, 471-483.

14. Honold, L., (1997). “A Review of Literature on Employee Empowerment”, Empowerment in Organizations, 5(4), 202-

212.

15. Henkel, A. G.; Repp - Begin C. L., and Vogt, J. F., (1993). “Empowerment-Readiness Survey: Foundations for Total

Quality”, In Pfeiffer J.W. (Ed.), Developing Human Resources (pp. 147–161).

*****

http://www.emeraldinsight.com/journals.htm?articleid=1554353&show

http://www.vectorstudy.com/management_theories/7S_framework.htm

http://www.studentoffortune.com/question/854121/...a.../1381905-IP%202.do

http://www.jstor.org/stable/25072762

http://members.tripod.com/j_fox/thesis.html

http://members.tripod.com/j_fox/thesis.html



A STUDY ON ABSENTEEISM OF EMPLOYEES AMONG FOOD

RETAILING IN COIMBATORE

S. Prakash17 K. Kannan18

ABSTRACT

The term absenteeism refers to the failure to attend to work. It is one of the major problems faced by companies across the

globe today. High rate of absenteeism is neither desirable to employers nor good for the employees. In majority of

organizations, high rate of absenteeism has an adverse effect on quality and quantity of production, efficiency of workers and

organization, organizational discipline and more importantly on the organization's intention to fulfill the new market demands.

Unscheduled absenteeism badly hurts the progress of an organization resulting in loss of productivity, increased costs in hiring

additional staff and low morale among the workers. It is high time that employers address this problem on a priority basis.

A sales professional cites some other reasons like workplace politics, long commute, strained relationship with the immediate

supervisor and lack of belongingness towards the organization as reasons for being absent from work. Whatever be the reason

absenteeism is not at all a healthy practice and steps should be taken to manage it effectively. In this paper a study has been

conducted among the sales people working in a retailing shop.

The main objective is to find out the level of absenteeism among the workers in the Organization, to find out the various

causes for absenteeism, to study the relationship between the employees’ satisfaction level and absenteeism and to finally

suggest the possible remedial measures to reduce and control the absenteeism rate. The study concludes that absenteeism can

be reduced to a great extent if the management takes initiative in making the workers feel responsible towards their job by

introducing various motivational schemes.

INTRODUCTION

In the words of Johns, in 2007 "Absenteeism is failing to report for scheduled work. As such, it is the violation of a social

obligation to be in a particular place at a particular time. Traditionally, absenteeism was viewed as an indicator of poor individual

performance and a breach of an implicit contract between employee and employer. Thus, it was seen as a management problem

and framed in economic or quasi-economic terms. Indeed, economists most frequently view absenteeism in labor supply terms.

More recently, absenteeism has increasingly been viewed as an indicator of psychological, medical, or social adjustment to work."

According to Goff, Mount, & Jamison, in 1990 "Employee absences due to personal illness, personal business and absence

without leave, as measured in number of hours. (Source: G. Ritzer Ed., Blackwell Encyclopedia of sociology, Blackwell

Publishing.) Van der Merwe and Miller (1988) classify absenteeism into three broad categories that help to understand the nature

of this phenomenon. They are Sickness absence, Authorized absence/absence with permission and unexcused absence / absence

without leave.

OBJECTIVES OF STUDY

1. To find out the level of absenteeism among the workers in the Organization.

2. To study the relationship between the employees satisfaction level and absenteeism.

3. To suggest the possible remedial measures to reduce and control the absenteeism rate.


Research Design

The research design adopted in this study is Descriptive Research Design.

Data Collection Tools

The researcher has used both the primary as well as secondary data. The primary data was collected using a structured

questionnaire and secondary data from financial websites, business magazines, newspapers, journals, attendance record,

employee’s handbook, HR handbook and policies, and from company website.

Study Area

The present study is an attempt to find out the absenteeism of employees among food retailing in Coimbatore. The area

chosen for the study comprises the city and suburban areas of Coimbatore in Tamil Nadu state.

17Professor, Department of MBA, SNS College of Technology, Tamil Nadu, India, [email protected] 18Assistant Professor, RVS Institute of Management Studies, Tamil Nadu, India, [email protected]





Census Study

In our study, the population (Food Retailing) in the study area happens to be known. Hence census study had been adopted to

contact the respondents. The distribution of the population is according to different categories of retailing industries as given in

table1.

Sampling Size

The sample size was 85.

Table-1

Food Retailing

(Categories)

Number of

Food Retailing

Number of

Respondents

Percentage

City 43 43 50.5

Suburban 42 42 49.5

Total 85 85 100

Data Analysis Tools

Scoring scheme was evolved to quantify the data. The data was analyzed by using Percentage analysis, weighted average, Chi

square test and one way ANOVA.

RESULT ANALYSIS

Out of 85 employees 42% of them, are of the age ranges in between 25-35 and in which 66% are married and 34% of are

unmarried. 34% of employees have more than 4 family members. 63% of employee takes less than.1 hr to reach the organisation.

Majority of the employee (41%) are having an experience of 5-10years.

58% of employee comes to the job on time but at the same time around 56% of them take leave without intimation. 34% of

employees avail leave even when the application is not sanctioned by the superior. 43% of employees take leave due to family or

personnel problems and 42% of them take leave due to health issues.

28% of the employees agree that stress adds to their absenteeism, 27% of the employees disagree that they are healthy and

energetic, 16%of the employees agree that they suffer from specific illness, 48%of the employees are highly satisfied with

working condition & norms of the company, 48% of the employees are satisfied with the relationship with the supervisor and his

behavior towards grievance handling procedure and 48% of the employees are satisfied with the level of freedom in the

organization.

From the analysis made using chi-square reveals that there is no significant difference between age of the employees and reason

for absenteeism, number of family members and leave taken by the employees in a month, experience of the employees and kind

of leave taken by them and finally age of the employees and reason for taking long leave.

One way ANOVA shows that there is a significant difference between the employees satisfaction level with the rate of

absenteeism.

Absenteeism and Work Regularity of Employees

Table-2

Work Environment

Table-3

Attributes Weighted Average (4) Rank

Awareness of Employees about Leave 3.50 1

Rate of Employees Informing Superior

Through Phone

2.50 3

Stress leads to Absenteeism 2.15 4

Health Problems 3.10 2


The Regularity of Employees Coming For Work at

Correct Time

2.50 1

Leave Taken By Employees Without Any Intimation 2.10 4

Tiredness of Work To The Employees 2.25 2

Possibility Of Getting Leave Whenever Required 2.15 3



Inter Personal Relationship

Table-4

Chi Square Calculations

1) Relationship between Age of Employees and Reason for Absenteeism

Null Hypothesis Ho: There is no significant difference between age of the employees and reason for absenteeism.

Alternative Hypothesis H1: There is significant difference between age of the employees and reason for absenteeism.

d.f. = (c-1) (r-1); df-9 and table value is 16.919@5% significance level.

Inference: Since the calculated value is less than the table value, we accept the Ho at 5% significant level. So there is no

significant difference between age of the employees and reason for absenteeism.

2) Relationship between Number of Family Members and Leave taken by Employees in Month

Null Hypothesis Ho: There is no significant difference between number of family members and leave taken by employees in a

month.

Alternative Hypothesis H2: There is significant difference between number of family members and leave taken by employees in

a month.



significant difference between number of family members and leave taken by the employees in a month.

3) Relationship between Experience of Employees and Kind of Leave taken by them

Null Hypothesis Ho: There is no significant difference between experience of employees and kind of leave taken by them.

Alternative Hypothesis H3: There is significant difference between experience of employees and kind of leave taken by them.



significant difference between number of family members and leave taken by the employees in a month.

4) Relationship between Employees Age and reason for taking long leave

Null Hypothesis Ho: There is no significant difference between age of the employees and reason for taking long leave.

Alternative Hypothesis H4: There is significant difference between age of the employees and reason for taking long leave.


significant difference between age of the employees and reason for taking long leave.

One Way ANOVA

Showing the attributes that satisfies the employees in relation to their level of absenteeism

Inference: Since the calculated value is greater than table value. So we reject the Ho at 5% significant level. There is a significant

difference between the employees satisfaction level with the rate of absenteeism.


Working Conditions 3.55 2

Relationship with Superiors 2.85 3

Relationship with Co-Workers 3.80 1

Level of Freedom 3.10 4



RECOMMENDATIONS

Absenteeism is a serious problem for management because it involves heavy additional expenses. The management should take

the following measures to reduce the rate of absenteeism:

The Return-to-Work Interview

The training of supervisors in how to best manage absenteeism should include instruction on how to conduct effective and fair

return-to-work interviews. Recent national surveys indicate that these interviews are regarded as one of the most effective tools

for managing short-term absenteeism.

Employee Assistance Program

Employees become frequently absent from work due to personal problems so the company can take initiative by providing

employee assistance programs.

Sickness Reporting

Tell employees that they must phone in as early as possible to advise why they are unable to make it to work and when they

expect to return.

Return to Work Interview

When an employee returns to work then ensure that they have a ‘return to work interview’ and routine enquiry must be done.

Medical Care Program

The management can provide advanced medical care program at least twice in a year for the health care of the workers.

Attendance Incentives

The attendance incentives may be raised a little to motivate the employees regularity.

Induction Programme for Family Members

The family members of the worker should also clearly inform about the loss the worker incurs due to his frequent absence for

work. The management can also make the family members to actively co-operate in making the worker attend work regularly.

This can be done by introducing a scheme which provides every year gifts, some home appliances, or some valuable things, for

every worker’s family, who attend for work for a specified number of days in a year.

Disciplinary Action

Some strict action could be taken on those workers who avail more than 2 days leave without any justifiable reasons.

Motivation Programmes

Conducting some games for the employees once in a month or taking the employees for some entertainment trip will help in

motivating and retaining the employees. This will also help in reducing the stress level of the employees.

CONCLUSIONS

Absenteeism has become a major problem in most of the Retail Industries. The absenteeism is mainly due to the poor educational

background of the workers, backwardness of the society. The workers are not as committed as Japanese workers but for this

worker class alone cannot be blamed but the employer’s are also equally responsible.

The management should provide good working environment which would create a feeling of job satisfaction. Absenteeism can be

reduced to a great extent if the management takes initiative in making the workers feel responsible towards their job by

introducing various motivational schemes. Absenteeism is the universal problem and every organization should strive to tackle the

problem for future development.

REFERENCES

1. (1999). “Employees in a Private Agency", Applied Research Projects.

2. Gary, (2008). "Absenteeism", The Blackwell Encyclopedia of Sociology, Blackwell Publishing.

3. Hendrix, H., (2008). “Cross-Level Replication and Extension of Steel”, Longitudinal Absence Findings.

4. (2001). Journal of Business and Psychology, Volume 16, Number 3, Pages 447-456.

5. Clenney, Mc, (1995). "A Study of the Relationship between Absenteeism and Job Satisfaction, Certain Personal

Characteristics, and Situational Factors for Employees in a Public Agency", Applied Research Projects

6. (1999). “Spencer Organizational and Extra Organizational Factors Affecting Stress, Employee Well-Being, and

Absenteeism for Males and Females”, Journal of Business and Psychology, Volume 8, Number 1, Pages 115-128

*****



ORGANIZATIONAL EFFECTIVENESS THROUGH

HR INTERVENTIONS IN BANKS OF MUMBAI REGION

Dr. Sunanda Narayan Bhat19

ABSTRACT

Human Resource plays a major role in realizing the business goals of any organizations. It also plays a critical role in that

growth advising, equipping and helping the business to shape the future. Working closely with line managers, HR attracts

nurtures and enables our talented people to create sustained high performance through engagement, structured learning and

mentoring. As it is rightly said by Akio Morita, founder of Sony Corporation, ‘The success of any organization depends on

how they treat their employee’s’. Among the various industries, banking underwent greater transformation in the liberalization

and globalization era. With the increasing pressure of financial innovation and the trends towards financial integration, the

banking industry is facing many changes in its nature and the roles of various players in this industry. All these changes will

definitely have their implications on the human resources. This paper gives a brief idea on various HR trends adopted by

banking industry, and its impact on employee’s welfare and the different measures taken by them to influence human resource

outputs.

“If I don’t have happy employees, I will never have happy customers”

Aditya Puri, MD HDFC Bank

INTRODUCTION

Effectiveness is the degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to

efficiency, effectiveness is determined without reference to costs and, whereas efficiency means "doing the thing right,"

effectiveness means "doing the right thing." According to Elton Mayo”, Effectiveness is the function of productivity resulting

from employee satisfaction. Thus an effective organization is one that continually strives to identify and focus on factors critical

to its customers and improves its processes in order to provide the highest-quality product or service possible. Organizational

effectiveness It serves as a gateway to training, development, and consulting resources that build organizational capacity, increase

individual capabilities, and promote a culture of excellence through strong leadership.

Human Resource is a cross-functional process in the organization. HR collects feedback, ideas, internal knowledge about

processes and best practices. HR Role is to work with the feedback and share the responsibility for the organizational

effectiveness. The organizational effectiveness is crucial for the success of the modern organization. The effectiveness has a

enormous impact on the profitability of the organization and allows higher investments or better development opportunities for

employees.

Benefits of Creating Effective Organization

Profitability in Business

Increased ability to attract new customers

Increased customer retention and reduced customer complaints

Increased employee involvement and satisfaction.

Improved management-employee relations and communication.

Better team work within the organization

OBJECTIVES OF STUDY

To understand the role of human resource planning and development in organizational effectiveness

To study human resource planning and career development system in order to maximize organizational effectiveness in

bank.


Primary data is collected through 10 public sector banks of Mumbai region.

Secondary data is being collected through various sources such as books, magazines, journals, newspapers and websites.

LIMITATIONS OF STUDY

Only ten public sector banks is taken into consideration.

The period of study is only three months.

19I/C Principal, Chinai College of Commerce, Maharashtra, India, [email protected]

http://www.businessdictionary.com/definition/degree.html

http://www.businessdictionary.com/definition/objective.html

http://www.businessdictionary.com/definition/problem.html

http://www.businessdictionary.com/definition/efficiency.html

http://www.businessdictionary.com/definition/reference.html

http://www.businessdictionary.com/definition/costs.html

http://www.businessdictionary.com/definition/mean.html

http://www.businessdictionary.com/definition/right.html




The data is limited to Mumbai region only.

The Class IV employees are not selected in the sample study.

REVIEW LITERATURE

The organizational effectiveness is hard to measure as there is no unified definition of the organizational effectiveness. Each

company has to design its own measures and has to define the desired target values. The top management has to deliver the

definition of the effectiveness. The effort of employees and managers is aimed to reach the defined target values.

HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a

collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM

function.

Michael Armstrong, in A Handbook of Human Resource Management Practice, describes Human Resource Management as “the

strategic and coherent approach to the management of an organization's most valued assets - the people working there who

individually and collectively contribute to the achievement of the objectives of the business.”

Even though ‘Human Resources’ is a relatively modern management term coined in the 1960s, the importance of Human

Resource Management can be traced back to Vedic ages. In the Bhagavad Gita, Lord Krishna not only makes Arjuna spiritually

enlightened, but also teaches him the art of self management, anger management, stress management, conflict management,

transformational leadership, motivation, goal setting and many other aspects which are now essential parts of any HRM

curriculum.

Miller (1987) suggests that HRM relates to, “those decisions and actions which concern the management of employees at all

levels in the business and which are related to the implementation of strategies directed towards creating and sustaining

competitive advantage."

Economic liberalization in 1991 created a hyper-competitive environment in banking field. As international banks entered the

Indian market bringing with them innovative and fierce competitiveness, Indian banking companies were forced to adopt and

implement innovative changes in their HR practices. Increasing demand for skilled performers forced the banks to shift focus on

attracting and retaining high-performing employees in a competitive marketplace.

Factors influencing Organizational Effectiveness

Maintaining effective employee and employer relationship.

Employee involvement and participation in matters of mutual interest.

Rendering awards, compensation and providing attractive pay packages for retention of employees.

Proper Job design and staffing of human resources.

Improving the performance of the individual and group in teamwork.

Protecting the health and safety of employees to preserve human resources.

DATA ANALYSIS & INTERPRETATIONS

A survey was undertaken among the 10 public sector banks of Mumbai region with an aim to understand the HR culture in their

organization. The table provides information collected from among 200 officials, probationary officers, managers, clerks and

other employees.The question were asked on the following parameters.

Table-1

S. No. Question Yes (%) No (%)

1. Are you happy with the work culture prevailing in the bank? 39 61

2. Does the bank have performance appraisal? 33 67

3. Any new imitative taken by banks for improvement of performance of employees? 51 49

4. Have you undergone workshop, seminar or training 70 30

5. Promotion in your bank is done on the basis of seniority 72 28

Sources: Authors Compilation

Analysis of the data reflected that overall satisfaction level among the employees is very less. 39 per cent of the people were

dissatisfied, whereas 61 per cent reflected satisfaction As regards to the reason of dissatisfaction, 33 percent identified the reason

as no performance appraisal in banks.

As regards to the promotion, very few felt that it is no done on the basis of seniority. Most of them also seemed dissatisfied

because they had not undergone training, workshop or attended seminar of the banks due to which they could not function in

effective manner.



The survey results are indicative of the fact that the satisfaction level is very poor among the staff of banks majorly due to

improper or ineffective HR strategy adopted by banks. The reason is the appointment is done on the basis of entrance examination

and interview rounds without training and workshop which is a need for organizational effectiveness.

HR Strategy in Banks

The bank should recognize that the only real source of sustainable competitive advantage for an organization is the power of its

high quality Human Capital. Hence a proper and effective strategy is required to bind the people and organization together to

achieve common goals. The HR strategy of three banks is as follows:

Canara Bank

Workplace

Quotient

The bank has foreseen the importance of imparting professional training to the employees for efficient

working. It also believes in work culture where family concept is practiced among the employees. Gives

receptivity to new ideas and opportunities for experimentation to the employees.

Best

Practices

Incentives for Self Development, Quality Circle, Exit Interview, Brainstorming Sessions, Employee

Suggestion Scheme, Staff Meeting, Study Circle.

Training

Centres

Bangalore School of Training and The Staff Training College (STC) at Bangalore with 13 Regional Staff

Training Colleges (RSTCs) spread across the country for effective in-house and cost beneficial training.

Bank of Baroda

Workplace

Quotient

Bank of Baroda believes that even in the era of high technology, it is the talent and the skills of its human

capital which makes the banks different from others.

Best

Practices

Baroda Sujhav {rewards for best ideas from employees}.Grooming and etiquettes programmes are being

conducted for front-line employees. SEED (Self efficiency and effectiveness development) programme

being run for frontline staff of the Bank in order to improve their service skills and servicing efficiency.

Training

Centres

Baroda - Manipal School of Banking train prospective candidates in Banking and Finance before their

embarking on a Banking career with Bank of Baroda. A systematic training in various areas of Banking and

management disciplines is given to make them ready Bankers by the time they finish the programme. It also

has a staff college in Ahmadabad.

State Bank of India

Workplace

Quotient

SBI has a separate HRD Division which looks into the training of employees of the bank. It seeks to

improve skills and impart knowledge for individual growth and organizational effectiveness.

Best

Practices

The bank has number of HR practices and functional program, educational tour, exit point test, dummy

banking etc.

Training

Centres

It has more than 65 training institution across the country. The bank has training academy in Gurgaon for

top management and official of SBI.

SUGGESTION AND RECOMMENDATIONS

The banks must shift the focus for employee satisfaction to employee delight.

Innovative changes from the employees must be appraised.

Redefining the various positions of employees by scientific job and role analysis.

Introducing new initiative schemes for employee such as thanks awards, employee stock option, quick promotional

initiatives, and appreciation schemes.etc.

Training programme should aim at value addition to customer services mainly on IT.

Frequent transfers of employees must be avoided particularly officers.

CONCLUSION

Quality of manpower is another issue needs paying attention to, in India. While millions of graduates and post-graduates pass out

of Indian universities each year, the actual number of employable talent is severely limited specially in banking sector.

“Attraction, motivation and retention” define the essence of HR deliverables. As the economy booms and industries mature – age

old personnel management fundamentals do not remain applicable. Creativity and innovation by HR function can make a big

difference in how an employee can actually be attracted, motivated and retained. The organizational effectiveness is also about the

people management in the organization.

The empowerment, pushing the responsibility to lower levels of the organization, and the right to make a mistake has a immense

impact on the speed and efficiency of the organization. If Indian bank want to arrive on global map they need to focus and

manage the human capital of the organization which is only possible by implementing innovative and effective human resource

strategy in banks.



REFERENCES

1. Biswajet, Pattanayak. (2006). Human Resource Management. New Delhi: Prentice Hall of India Publication.

2. Banfield, P., & Rebecca, K. (2008). Introduction to Human Resource Management. Oxford: Oxford University Press.

3. Machiraju, H. R. (2008). Modern Commercial Banking. New Delhi: New Age International.

4. K., Aswathappa. (2005). Human Resource and Personnel Management. New Delhi: Tata Mc Graw-Hill.

5. Paauwe, J. (2009). HRM and Performance: Achievement, Methodological Issues and Prospects. Journal of

Management Studies.

6. T., Sreenivas. (2006). Banking Sector and Human Resources: Changing Scenario. New Delhi: Discovery Publishing

House.

7. (2007, November 07). Repot on HR issues and Managing Talent in India’s Banking Industry.

8. V., Armstrong Michael. (2006). A Handbook of Human Resource Management Practice (10th Edition). London:

Kogan Page. ISBN 0-7494-4631-5.

9. Wilson, J. P. (2009). Human Resource Development: Learning and Training for individuals and organizations (2nd

Edition). United Kingdom: Kogan Page Limited.

10. http://www.simplehrguide.com/organizational-effectiveness-as-hr-role.html

11. http://shodhganga.inflibnet.ac.in/bitstream/10603/10920/6/06_chapter1.pdf

12. http://kiransingh7.blogspot.com/2011/04/where-does-hr-in-india-go-from-here.html

13. http://www.bankofbaroda.com/careers/Manipal.asp

14. http://www.whatishumanresource.com/human-resource-management

15. http://www.govjobsite.in/2015/12/project-employee-welfare-measure-satisfaction.html

16. http://www.slideserve.com/kerry/quality-management-introduction

17. https://www.deepdyve.com/lp/emerald-publishing/human-resource-management-in-southern-african-librari...

18. http://www.canarabank.com/English/scripts/HRDInitiatives.aspx

19. http://www.businessdictionary.com/definition/effectiveness.html

20. http://www.simplehrguide.com/organizational-effectiveness-as-hr-role.html

21. http://shodhganga.inflibnet.ac.in/bitstream/10603/10920/6/06_chapter1.pdf

22. http://kiransingh7.blogspot.com/2011/04/where-does-hr-in-india-go-from-here.html

23. http://www.bankofbaroda.com/careers/Manipal.asp

24. http://www.whatishumanresource.com/human-resource-management

25. http://www.slideserve.com/kerry/quality-management-introduction

26. http://www.govjobsite.in/2015/12/project-employee-welfare-measure-satisfaction.html

27. https://www.deepdyve.com/lp/emerald-publishing/human-resource-management-in-southern-african-librari...

28. http://www.canarabank.com/English/scripts/HRDInitiatives.aspx

29. http://www.businessdictionary.com/definition/effectiveness.html

*****

http://www.google.com/search?tbo=p&tbm=bks&q=inauthor:%22H.+R.+Machiraju%22

http://www.google.com/search?tbo=p&tbm=bks&q=inauthor:%22H.+R.%22

http://www.google.com/search?tbo=p&tbm=bks&q=inauthor:%22T.+Sreenivas%22



INTRINSIC AND EXTRINSIC MOTIVATIONAL FACTORS AFFECTING TEACHERS -

A STUDY WITH RESPECT TO INDORE REGION

Sanjeevni Gangwani20

ABSTRACT

A teacher plays a significant role in the student's life. As one becomes a product of one's learning’s, the student builds

him/herself with the teachings of a teacher. The teacher's knowledge, along with the teacher's feelings, becomes integrated

within the student's schemata. If a teacher not likes teaching, the student emerges from the classroom with a dislike for

education. When the teacher loves his/her profession, the student learns to love education. There are many dynamics which

coalesce into the person who loves his/her profession.

The major dynamic: motivation. When one understands the components involved in the construct of motivation, one can

better become and remain motivated. When a teacher remains motivated, loving the teaching profession, the students not only

learn the content taught by the teacher, but the students are also motivated toward learning.

All teachers yearn for reassurance that they are doing a good job. Most principals recognize teachers' efforts by offering

positive feedback -- both publicly and privately. Weekly memos or e-mails, and regular staff meetings, are the perfect forums

for recognizing special contributions that teachers or other staff members make."With all teachers have to do, motivation is

the key to keeping them focused and feeling worthy.

This paper aims at focusing on the importance of the factors that affect the motivation of teachers. It defines the concept of

motivation. Main motivators for teachers are presented. It also takes into account the sources of motivation which are

necessary in teaching process.

The objective of the present study is to identify the intrinsic and extrinsic motivational factors affecting teachers of

management institutes in Indore region.

INTRODUCTION

Motivation is not completely a new term. What is interesting about it is that it is commonly assumed to be a good thing that goes

in influencing individual's behavior and performance at work. Motivation is the art of focusing one’s mind and energy on doing

his/her work as effectively as possible.

Motivation is defined as "Some kind of internal drive which pushes someone to do things in order to achieve something" (Harmer,

2001:51). As stated by Brown (1994:152), motivation is a term that is used to define the success or the failure of any complex

task. Steers and Porter (1991:6) deal with three matters while discussing motivation:

What energizes human behavior?

What directs or channels such behavior?

How this behavior is maintained or sustained?

Motivation is thought to be responsible for "why people decide to do something, how long they are willing to sustain the activity

and how hard they are going to pursue it" (Dörnyei, 2001a:8).

Ryan and Deci (2000a:54) state that "to be motivated means to be moved to do something". Unlike unmotivated people who have

lost impetus and inspiration to act, motivated people are energized and activated to the end of a task. "Interest, curiosity, or a

desire to achieve" (Williams and Burden, 1997:111) are the key factors that compose motivated people. However, they believe

that arousing interest is not enough to be motivated. This interest should be sustained. In addition to this, time and energy should

be invested and the effect which is required needs to be sustained so as to reach the aim. According to Steers and Porter (1991:6),

motivation can be characterized as follows:

Needs or expectations.

Behavior.

Goals,

Some form of feedback.

Richard Ingersoll, a University of Georgia sociologist, defines teaching as "an occupation with a very high turnover rate and the

graying workforce is only a piece of the puzzle" (Lawrence, 1999:13).

20Associate Professor, Medicaps Institute of Technology & Management, Madhya Pradesh, India, [email protected]




Johnson (1986:55) states that there are three theories of motivation and productivity that teacher motivation is based on:

Expectancy Theory: It is probable for a person to struggle for work if there is an expected reward such a bonus or a

promotion that is worth working.

Equity Theory: Unfair treatment for their efforts and achievements makes individuals displeased.

Job Enrichment Theory. The more varied and challenging their work is, the more productive employees become.

While merit pay and career ladders are dealt with in the first two theories, the third one studies distinguished staffing and "reform-

oriented staff development" (NAEN, 1999). There is a tight relation between performance-based pay and a career ladder to be

climbed to take higher pay and higher status. Also, merit pay is known as "a compensation system" where employees are paid in

terms of their performance. However, in educational practice, merit pay indicates a bonus plan that "supplements that standard

pay scale and rewards teachers for special services, a multitrack pay scale that provides rapid salary advancement for outstanding

teachers, or a bonus plan for accomplishment such as participating in extracurricular activities, or conducting in-service training"

(Johnson, 1986:61).

According to Hawley (1985:58), in order to increase teacher competence career ladder plans should be done. There are some

principles to be designed for career ladder plans. These are:

For high performance, economic rewards are important.

In order to keep higher levels of pay and status, teachers carry on showing high performance.

There should not be any competitive rewards which can discourage peer interaction and social approval, important to

effective teaching.

Fair and predictable assessment measures should be used.

"The need to avoid pain and the need for psychological growth" are two basic elements found in job enrichment theory (Silver,

1982:551). It is said that motivation factors should be intrinsic which present tasks that are more enjoyable, interesting and

psychologically rewarding. Achievement, recognition, work, responsibility, advancement and possibility of growth take place in

that group. On the other hand, other factors are extrinsic in terms of the context or setting where the work is performed.

Organizational policy and administration, technical supervision, salary, working conditions, status, job security, effects on

personal life, and interpersonal relations with superiors, peers and subordinates are in that group.

INTRINSIC MOTIVATION

Ellis (1984:1) defines intrinsic motivation as self-respect of accomplishment and personal growth. That is, the emotional and

personal benefits of the job itself are known as intrinsic rewards. Latham (1998:83) emphasizes that intrinsic rewards take an

important role in teachers’ lives. Seeing the growth and development of students makes a teacher more satisfied, regardless of

extrinsic elements, when compared with a teacher who does not feel anything with the success of his students. The activities that

satisfy curiosity or lead to enhance the effectiveness are regarded as intrinsically motivated behaviors (Boggiano and Pittman,

1992:3).

Competence and autonomy are the important issues on intrinsic motivation. Social-contextual events such as feedback,

communications, rewards which cause feelings of competence foster intrinsic motivation (Ryan and Deci, 2000b:70). While

positive performance feedback increases intrinsic motivation, negative performance feedback decreases it. Intrinsic motivation is

likely to be increased by a sense of relatedness.

Raffini (1996:8) defines relatedness as "the degree of emotional security" that teachers feel. A sense of belonging and acceptance

is developed by conforming to the social and academic expectations of their colleagues and administrator. A secure relational base

is thought to be an important issue for intrinsic motivation. (Ryan and Deci, 2000b:71). Czubaj (1996:372) states that the teachers

with an internal locus of control are under less stress and more successful in teaching. Therefore, the students of these teachers

feel less school related stress and take higher scores in their assessments.

It is clear that teacher efficacy affects students directly. There is a tight correlation between teacher efficacy and students

performance. "Good enough motivator" (Dörnyei, 2001c:135) is such a concept that a desired outcome by students can occur with

the help of this certain teacher function. There is a high correlation between intrinsic motivation and teaching. Internal desire to

educate people, to give knowledge and value is always in teaching as a vocational goal. Fulfillment of teaching is provided with

intrinsic rewards. "Performing a behavior for its own sake in order to experience pleasure and satisfaction such as the joy of doing

a particular activity or satisfying one’s curiosity" is the definition of intrinsic motivation (Dörnyei, 2001b:47).

With the help of this definition, intrinsic reward is divided into most satisfying views of teaching as a profession: a) the

educational process itself, and, b) the subject matter. The first one is about the teacher’s performance affected by working with

students and perceiving the changes in the students’ performance and behavior. The second one is related to studying a valued

field and new information in it so it leads to increase one’s own level of professional skills and knowledge. Such intrinsic rewards

make teachers forgo high salaries and social recognition. Professional effectiveness comes from being aware of one’s strengths

and limitations (Kottler and Zehn, 2000:3). Not only being in an autonomous manner, which means that the worker is given

control of what, how and when the work is done, but also "competence" replaced by "efficacy" are crucial aspects in intrinsic



dimension of teacher motivation. Wheatley (2000:14) states that "teacher efficacy refers to teachers’ beliefs about their ability to

influence student outcomes". It has also been defined as "teachers’ general beliefs about the possibility of producing student

learning in the face of multiple obstacles such as an unsupportive home environment" (Dörnyei, 2001a:169).

EXTRINSIC MOTIVATION

"Tangible benefits" (Latham, 1998:82) related to job such as salary, fringe benefits and job security are known as extrinsic

motivation or called extrinsic rewards. Wage increase or insufficient salary increase are in the salary category. Tenure and

company stability are handled in job security.

In addition to this, physical conditions, the amount of work and the facilities available for doing the work are regarded as extrinsic

rewards (Herzberg and et al., 1993:49).Latham (1998:83) points out that "sociologically extrinsic" elements play a role in

disparity in job satisfaction. The research shows that the public school teachers have a small average class size and a much higher

average salary when compared to the Catholic school teachers. However, public school teachers do not feel efficacious and

satisfied despite the good condition. Ryan and Deci (2000b:71) define that extrinsic motivation is concerned with the performance

of an activity to succeed in getting separable outcomes, which contrasts sharply with intrinsic motivation.

Contextual Factors

Environment plays a key role in job motivation, in other words, it is not the worker but work itself which has a great influence on

persistence and performance. Extrinsic influences on work motivation are thought to be a real domain. While its presence results

in dissatisfaction, its absence does not make any sense in the increase of job satisfaction. These contextual influences are the

negative sides of the positive part, intrinsic domain, of work motivation.

There are two types of contextual influences on teacher motivation, called macro-contextual and micro-contextual influences.

Macro-contextual motives are related to teaching as the job itself should fulfill the chief societal duties such as bringing up and

educating the next generation of people. Thus, every level of society as an external influence deals with teaching. However,

micro-dimension is featured with the organizational climate of the particular institution where teachers work, the class, and the

traits of teaching environment, and students. The following factors affect teacher motivation:

The Institute’s general climate and the existing norms.

The class sizes, resources and facilities.

The standard activity structure within the institution.

Collegial relations.

The definition of the teacher’s role by colleagues and authorities.

General expectations regarding student potential.

The reward contingencies and feedback system.

The leadership and decision-making structure (Dörnyei, 2001a:161).

The teacher’s role is thus as important as his responsibility is onerous. Therefore there is a strong need in the society to focus on

the significance of Teacher Job Satisfaction and factors affection motivation in teachers.


Teachers are powerful tools for improving quality of education through effective classroom practices (Davidson, 2007).

According to Bess (1997), the primary factor that contributes to effective classroom practices is strong motivation. Therefore to

bring about a change to an educational system, improvements to improve teacher motivation are essential.

A planning for such improvements would require the planner to know the existing state of teacher motivation and factors affecting

teacher motivation. This information will inform about the factors that need improvements. Motivation can be classified into

intrinsic and extrinsic. The extrinsic motivation of teachers is associated with many extrinsic factors such salary, working

conditions etc. Intrinsic motivation is the motivation contributed mainly by intrinsic factors such as enjoyment, personal

satisfaction etc. The intrinsic motivation some extent is enhanced by the extrinsic factors.

When studying the existing state of teacher motivation, it is essential to examine both the intrinsic and extrinsic factors affecting

teachers’ motivation. Since the number of these factors is large to cover them in one report, this study concentrated on intrinsic

factors only; the factors associated with the teachers’ inner feelings which stimulate them to give the best performance in their

teaching career. Ozcan (1996) proposed that teacher motivation is likely to be enhanced by three types of rewards, in which one of

it is intrinsic rewards. He described intrinsic rewards as the inner feeling experienced within the individual such as joy, pleasure

and psychological satisfaction.

Several studies have reported that teachers appeared to be motivated by intrinsic factors such as enjoyment. Brewer (2005)

described that the greatest enjoyment in teaching comes from seeing students who have achieved success academically, and in

seeing the students developing their personal characters and identities. Kuruseka (2003) reported that about 75% of teachers

teaching English as a foreign language described that their enjoyment was contributed by working with children.



In a study of the reasons why excellent technology teachers enjoy teaching, most of the teachers cited that working with children

and seeing the impact of the teachers’ contribution to society as the enjoyable aspects of teaching (Wright & Custer, 1998). The

teachers believed that these two aspects of enjoyment were essential components for motivating teachers intrinsically (Day,

Stobart, Sammons, & Kington, 2006).

In addition to that, Wright and Custer (1998) reported that the majority of teachers considered learning new technologies as the

most important aspect of enjoyment derived from teaching. Eick (2002) reported that the desire to continue teaching is linked with

enjoyment, the passion and love to interact with children and the belief that teachers are the ones that could help develop society

in the future (Nieto, 2003). William (2003) revealed that excellent teachers were motivated to continue teaching because they

were able to fulfill their personal accomplishment by seeing the students’ successes.

Past research has associated motivation with satisfaction (Bidwell, 1955; Dinham & Scott, 1998). Dinham & Scott, (1998) cited a

statement of Nadler and Lawler (1991) that motivation is stimulated by a particular behavior and satisfaction is the product of that

behavior.

On similar lines, Zembylas and Papanastasiou (2003) reported that the level of intrinsic motivation stimulated by working with

children, seeing their progress and achievement, and making contribution to society are among the factors attributing to teachers’

satisfaction, and maintaining a good level of motivation in the job. In their study, teachers proclaimed that teaching gave them an

opportunity to experience new challenges and allowed them to explore, create and improvise the ways they teach. By having this

kind of motivation, teachers are more satisfied with the work and this satisfaction will either maintain their motivation, or further

motivate them to aim for a higher level of satisfaction.

Thomas (1983) stated that satisfaction and motivation possibly move in a circle. This implied satisfaction tends to motivate

teachers to aim for higher performance and achievement to fulfil their sense of accomplishment.

Anderson and Iwaniski (1984) reported that teachers need self-actualization because without it may lead to teacher burn-out; they

suggested that teachers must be provided with opportunities to enhance self-actualization. Self-actualization is described as “the

full use and exploitation of talents, capacities, potentialities, etc., such people seem to be fulfilling themselves and doing the best

that they are capable of doing” (Maslow, 1959; p 150).

Anderson and Iwaniski (1984) cited Sergiovanni and Carver (1974) who reported that self-actualization is the need for achieving

full potential, personal and professional success and reaching for peak satisfaction.

Coble and Hounshell (1972) described Maslow’s theory of self-actualization by stating that “people who are positively able to

take self-action are primarily motivated by the need for self-actualization, thus according to them are able to become better

teachers and parents”. This study will consider the definition by Coble and Hounshell (1972).Eick (2002) reported that science

teachers whose qualification were science majors viewed teaching as a way to utilize and impart their knowledge and enhance

their learning in science. This study also showed that teachers whose backgrounds were science majors were more motivated to

enhance their talents and capacities. In another study on teachers’ job satisfaction and motivation for teacher effectiveness,

reaching one’s potential and personal growth was ranked as the third most important factor that motivated teachers to teach

(Ololube, 2006).

The above reported literature suggests that enjoyment, satisfaction and self actualisation are important factors associated with

intrinsic motivation. Using these pieces of research as a guide, intrinsic factors for this study were classified to three categories

namely enjoyment, satisfaction and self-actualization. There are many motivation studies reported from all parts of the world

including South Africa (Bennell & Akyeampong, 2007); USA (Ingersoll & Perda, 2003), and Australia (Ingersoll, 2003). In

Brunei, factors affecting teacher motivation have not been explored.

As Bruneian culture and economy are different, the perceptions can be influenced by such factors, it is therefore of interest to

examine to what extent are the science teachers in Brunei perceive intrinsic factors to be important in influencing their motivation

to teach. It is also of interest to find how these perceptions are affected by the teachers’ gender, marital status, nationality,

experiences, level of grade taught and geographical location of teachers’ workplace.

As motivated teachers are often associated with producing motivated students with high achievement (Atkinson, 2000), the study

will provide useful information to educators on the variables that will inspire management teachers to accomplish their task

effectively. In this respect, it is hoped that administrators and school leaders can use the findings to create learning environments

that will be more effective in motivating teachers.

OBJECTIVES OF STUDY

1. To investigate the intrinsic and extrinsic factors teachers perceive important for motivating them to teach.

2. To explore various ways to motivate teachers through literature review and secondary data-through past researches on

teacher motivational factors.

3. To highlight the need of motivated teachers in society.




Sampling Design

The sample comprised of teachers of management institutes in Indore region. Random sample of 108 teachers were selected from

Indore region. A fourteen item self administered questionnaire were mailed to the selected sample for the study. The study was

descriptive in nature.


The questionnaire containing fourteen items, seven related to intrinsic and seven related to extrinsic motivation was administered.

The instrument used was very simple and self administered. The respondents were asked to rank-order the fourteen items

depending on their importance to them from 1(highest rank) to 14 (lowest rank).

The fourteen items included the seven intrinsic motivational factors such as: advancement, interesting work, respect and

recognition, responsibility and independence, achievement, a technically competent supervisor, and an equitable pay.

The seven extrinsic motivational factors were: security, adequate earnings, fringe benefits, comfortable working conditions, sound

organization policies and practices, a considerate and sympathetic supervisor, and restricted hours of work.

Scoring

The ranks given were added for intrinsic motivation (item numbers 4, 6, 8, 9, 10, 12 and 14) and for extrinsic motivation (item

numbers 1,2,3,5,7,11 and 13).The lower the score the higher was the value given to the concerned motivational factors.

Reliability

Split-half reliability (N=108) was found to be .88.

Validity

Factor analysis was done for a sample size of 108 which included teachers of Indore region. Factor analysis (principal axis

factoring with varimax solution of data management institutes teachers (N=108), using a two factor solution is presented in table1.

FINDINGS

Out of seven extrinsic aspects, six are included in factor 1 (which explains 42% variance). “Restricted hours of work” has almost

zero loading on both the factors. This aspect seems to be irrelevant to motivation. Equitable pay is a loading on factor 1 but not on

factor 2, although this is included in intrinsic motivation. Three intrinsic aspects (advancement, recognition and achievement) also

have significant loadings on this factor. This is a general motivation factor.

Factor 2 (explaining 8% variance) is a pure intrinsic motivation factor, although “considerate supervisor” also has high loading on

it, and “equitable pay” has very low loading.

Table-1: Factor Loadings (Loadings of 3 and Above Are Given)

S. No. Aspects Factor1 Factor2

1 Security .75

2. Adequate earnings .63

3 Fringe benefits .93

4 Advancement .73 .35

5 Working Conditions .88

6. Interesting work .40

7. Company policy .31

8 Respect and recognition .75 .54

9. Responsibility/Independence .53

10. Achievement .37 .65

11. Considerate supervisor .76 .56

12. Competent supervisor .49

13. Restricted work hours ---

14. Equitable pay. .67

Mean values of all fourteen items, and extrinsic and intrinsic motivation for teachers in Indore region are presented in the table2:



Table-2: (Mean and SD of Intrinsic and Extrinsic Factors)

CONCLUSIONS

Lack of motivation may cause teachers to be less successful in teaching. Unreasonable demands of administrators, discouraging

team spirit, neglecting rewards, financial problems are the factors related to de-motivation. It should not be forgotten that every

teacher is not motivated entirely by the same demands and needs. Job satisfaction of each employee is different from the other.

Without having intrinsic motivation, lack of success is inevitable.

If there are not any factors motivating teachers, the productivity will decrease dramatically. It is obvious that intrinsic rewards

outweigh extrinsic ones in educator motivation and job satisfaction. Thus, without intrinsic motivation creative work cannot be

done and growth does not occur. Therefore, a teacher, who is happy with his job, plays a pivotal role in the upliftment of society.

Well adjusted and satisfied teacher can contribute a lot to the well being of his / her pupils. Dissatisfied teacher can become

irritable and may create tensions which can have negative influence on the students’ learning process and it consequently affects

their academic growth. Thus, various measures must be adopted by educational institutions to develop intrinsic motivation among

their teachers and of course organizations should become aware of the teachers motivational needs.

SUGGESTIONS

Both motivators and hygienic factors have generally been found to influence both satisfaction and dissatisfaction in a mixed

fashion. While intrinsic factors (e.g. job content, promotion and growth) contribute to dissatisfaction, extrinsic factors (e.g.:

security, coworker relations and friendliness of superior contribute to satisfaction). Conducting regular surveys on employee

motivation is important in an organization as it will help in designing job enrichment programme for its employees which means

entailing redesigning of jobs because job enrinchment attempts to build as many motivators into the job as possible. The present

research has also made clear that incentives and high salaries alone are not enough to motivate employees.

Organizations need to recognize their employees work and create for them opportunities for growth and advancement. Therefore

every organization must attract competent people and retain with it. Allow people to perform tasks for which they were hired, and

stimulate people to go beyond routine performance and over reach themselves in their work. Thus if the organization were to be

effective it must address the motivational challenges involved in arousing peoples desires to be productive members of the

organization.

IMPLICATIONS FOR FUTURE RESEARCH

While organizations have for some time viewed their financial and physical resources from a long term perspective, only recently

have they begun seriously to apply this same perspective to their human resources. Many organizations are now beginning to pay

increasing attention to developing their employees as future resources (a talent bank) upon which they can draw as they grow and

develop. Evidence for such concern can be seen in the recent growth of management and organization development programmers,

in the increased popularity of “assessment center” appraisals, in recent attention to manpower planning and in the emergence of

human resource accounting systems.

More concern is being directed, in addition, towards stimulating employees to enlarge their job skills (through training, job

design, job rotation and so on at both blue collar and white collar levels in an effort to ensure a continual reservoir of well trained

and highly motivated people. Motivation coupled with ability leads to performance. Motivated employees not only perform

allotted task, they look for better ways to do a job.

Therefore, motivational surveys may further help in framing corporate strategies and to employees who are looking for better

ways to do a job. It is the responsibility of the employers to make employees look for better ways of doing jobs. An understanding

of the nature of factors affecting employee motivation is helpful in this context.

S. No. Intrinsic and Extrinsic factors Mean SD

1. Security 4.5 5.8

2. Adequate earning 4.6 4.5

3. Fringe benefits 7.4 7.3

4. Advancement 4.7 5.2

5. Comfortable working conditions 9.0 8.4

6. Interesting work 3.6 2.9

7. Sound company policies and practices 8.3 3.2

8. Respect and recognition 9.5 9.4

9. Responsibility and independence 7.1 3.6

10. Achievement 7.0 4.3

11. Considerate and sympathetic supervisor. 11.6 10.5

12. Technically competent supervisor 11.4 3.2

13. Restricted work hours 11.5 3.3

14. Equitable Pay 10.1 6.3



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*****



ORGANISATIONAL MOTIVATORS OF EXPATRIATION:

RELEVANCE OF GENDER IN CULTURAL DIVERSITY

P. Vanitha21

ABSTRACT

When it comes to building up subsidiaries in a host country, locals may lack the specific skills required by the Multinational

Companies (MNCs). Therefore, the companies should send expatriates to conduct business in order to ensure themselves

against failure (Ronen, 1986 This paper focuses on various motivators of the expatriates, which has an impact on gender in

the cross-cultural environment.

This paper aims to manage harmonious working relationship among expatriates and international clients by analyzing the

motivational factors associated with cultural diversity and to focus on expatriate’s gender perceptions in a culturally

diversified environment. This study consists of 334 Indian expatriates of various Multinational companies who have travelled

across globe for assignments.

INTRODUCTION

During the 1990‘s India‘s ongoing economic liberalization has ushered in a more favourable investment climate for foreign

companies (As-Saber, et al. 1998). Moreover, because of the inclination towards urbanization, sizeable market of India as well as

reforms in the external sector brought about a growth in the Multi-national Corporations (MNCs). This also included a large

number of Fortune 5001 companies in various sectors (Bajpai and dasgupta 2004). In the latter half of 1990‘s the purchasing

power of the people living in India increased due to an increase in income level which brought a boom in the consumer durable

sector (Bhaumik et al 2003a).

The major cities of India where the wholly owned subsidiaries were setting up were New Delhi, Mumbai and Bangalore. The

sectors which witnessed the substantial growth of subsidiaries were banking and financial services, manufacturing, information

technology and telecommunications (Bajpai, Dasgupta 2004). Culture is a set of social norms and responses that conditions the

behavior of a group of people. The professional who works internationally must consider not only the job and family, but also the

culture as well.


Today, the expatriation process involves many technical and professional aspects, but also contains personal, social and cultural

items, that are often the trigger that make expatriates choose to return to his country ahead of schedule. The current project

focuses on these aspects. The root of the problem of an unsuccessful expatriation is the improvisation and the ignorance of the

needs of expatriates. The main protagonist of expatriation process is the expatriate. In this scenario, it is necessary to find out the

issues of the expatriates in the expatriation and the strategies to overcome the same can help the firms to plan accordingly. This in

turn can make the expatriation a happy process. The international culture, professional work culture needs to be adopted and

inculcated for effective delivery of the results. Pre departure training, post arrival employment planning along with project-

required skills training can help the employee to cope easily and find it comfortable to get along with new project in a culturally

diverse new place.

This study consists of 334 Indian expatriates of various Multinational companies who have travelled across globe for

assignments.The relevance of some questions was modified for final version of questionnaire. The reliability coefficient of the

questionnaire is computed using Corn Bach‘s Alpha and the value is 0.794, which shows that the instrument is reliable.

RESEARCH OBJECTIVES

To study the profile of the Indian Expats in the sample

To review the expatriate management culture of the expatriate country (Legal and Procedural factors)

To study the motivational factors for expatriation for a specific country

To find out the various dimensions (Environmental, personal and professional) of Problems among the expatriates

DATA ANALYSIS

Null Hypothesis: There is no significant difference between the perceptions of male and female with regard to motivating factors

of expatriation and intentions of expatriation among the sample respondents.

21Research Scholar, Department of Management Studies, Bharathiar University, Tamil Nadu, India, [email protected]




Table-1: Showing the Group Statistics of Gender and Motivating Factors of Expatriation along with T-Test Result

Motivating Factors of Expatriation / Intensions Gender N Mean SD t-value P value

Career Growth Male 200 16.04 4.986 3.342 0.001**

Female 134 14.19 4.857

Security Male 200 15.57 5.219 3.334 0.001**

Female 134 13.59 5.037

Overall Motivating Factors of Expatriation / Intensions Male 200 31.61 9.467 3.654 0.000**

Female 134 27.78 9.222


Table-1 shows, since p value is less than 0.01, the null hypothesis, There is no significant difference between the perceptions of

male and female with regard to motivating factors of expatriation and intentions of expatriation among the sample respondents is

rejected at 1% level of significance. Hence, it is concluded that, there is a highly significant difference between the perceptions of

male and female with regard to motivating factors of expatriation and intentions of expatriation among the sample respondents.

Based on the mean value, it is observed that high level of motivation is found among the male respondents when compared to

female in the sample. This may be due to cultural myths as male members are the breadwinner of a family and thereby he is more

motivated towards career growth and financial security. It is not so the case in the changing environment. Many women in society

presume the equal responsibility of family.

Null Hypothesis: There is no significant difference between the perceptions of male and female with regard to problems faced by

the expatriates among the sample respondents.

Table-2: Showing the Group Statistics of Gender and Problems Faced by the Expatriates

Problems faced by the Expatriates / Challenges Gender N Mean SD t-value P value

Personal Problems Male 200 14.82 3.893 1.993 0.047*

Female 134 15.72 4.357

Cultural Problems Male 200 15.00 4.458 2.941 0.004**

Female 134 16.48 4.565

Social Problems Male 200 14.25 4.435 3.167 0.002**

Female 134 15.78 4.222

Safety Problems Male 200 14.74 4.133 2.314 0.021*

Female 134 15.80 4.044

Self Ego Problems Male 200 17.40 4.184 3.086 0.002**

Female 134 18.72 3.307

Overall Problems Faced by the Expatriates Male 200 76.19 16.839 3.427 0.001**

Female 134 82.51 15.974


Table-2 shows, since p value is observed at less than 0.01, the null hypothesis, There is no significant difference between the

perceptions of male and female with regard to problems faced by the expatriates among the sample respondents is rejected at 1%

level of significance. Based on the same, statistically, it is inferred that there is a highly significant difference between the

perceptions of male and female with regard to problems faced by the expatriates among the sample respondents. On the other

hand, it is noted that the high level of problems in the expatriation is observed among the female members when compared to

male in the sample. It may be due to immovability, safety issues, family responsibility and other socio cultural aspects of women

in family and society. It is also observed that self-ego problems of high among the women when compared to others. This may be

due to socio cultural differences and responsibility of family are inherently cleansing at heart. The situation can be corrected

through connectivity with family with advanced technology tools like video conferencing, Skype etc. This can help to focus on

work and give better quality of work.

Null Hypothesis: There is no significant difference between the perceptions of male and female with regard to expatriate

environment and culture prevailing among the sample respondents.

Table-3 shows, since the p value observed is at less than 0.01, hence, the null hypothesis, There is no significant difference

between the perceptions of male and female with regard to expatriate environment and culture prevailing among the sample

respondents is rejected at 1% level of significance. Based on the same, it is concluded that, there is a highly significant difference

between the perceptions of male and female with regard to expatriate environment and culture prevailing among the sample

respondents. Based on the mean values, it is inferred that high level of positive perceptions are observed among male respondents

when compared to other in the sample. This may be due to thrust on career growth and development and the focus on financial

stability for comfortable living.



Table-3: Showing the Group Statistics of Gender Perceptions on Expatriate Climate and Culture Prevailing

Expatriate Management Environment and Prevailing Culture Gender N Mean SD t-value P value

Awareness Male 200 17.07 3.826 3.146 0.002**

Female 134 15.56 4.926

Professional Male 200 18.23 3.941 3.410 0.001**

Female 134 16.52 5.194

Environmental Male 200 16.81 3.979 2.795 0.005**

Female 134 15.59 3.808

Social Male 200 16.43 3.935 3.774 0.000**

Female 134 14.79 3.792

Overall Expatriate Environment and Prevailing Culture Male 200 68.54 12.61 4.024 0.000**

Female 134 62.46 14.771


FINDINGS OF THE STUDY

59.9 percent of the expats are male and the remaining 40.1 percent are female in the sample. Gender has high level of

association with the expatriation status. The majority of the men prefer to go abroad for career up gradation,

employment stability, financial reasons and other organizational needs.

44 percent of expats in the IT sector is belongs to 26-35 years age group. It is followed by 21.9 percent belong to the

age group of above 45 years. The younger age group is interested in expatriation due to earning potential and career

prospects. Where as senior executives prefer to have difference cultural management experience to equip them and to

learn new aspects of technology and management dynamics in different business environment.

Tenure of expat is observed at below five years in majority of the cases and it is represented at 35 percent of the sample.

In it is followed by 28.1 percent of the sample represents that the tenure of the expatriation is 5-10 years. It is also

observed that as maximum as above 20 years of expatriation is represented by 17.4 percent of the sample.

Expatriation is not requires lot of work experience but it requires attitude to work. The same is represented in the sample

with as many 31.4% of the employees went on expatriation without any experience. On the other hand, 52.7% of the

sample represented different country experience of expatriation and 15.9% are worked as expatriates at different places.

47.6 percent of the expats in the sample are from Tamilnadu, it is followed by 21.9 percent are from Andrapradesh, 15.6

percent of the expats in the sample are from Kerala and 15 percent are from Karnataka in the sample. This indicates that

expats are high in number from Tamilnadu state.

62.9 percent of the expats are on company sponsorship for accommodation and the remaining 37.1 percent are self-

sponsored. This indicates that, the expatriation is new to many and it is a company can able to provide at cheaper cost

and centralized service hubs for the benefit of the employees.

35.3% are very fluent with the local language of the expat country and 13.5% are not familiar with the language of the

country of expatriation.

SUGGESTIONS

Sending People for the Right Reasons: The reason for sending a person overseas must go beyond an immediate business

problem. For as long as companies have been sending people abroad, many have been doing so for the wrong reasons - that is, for

reasons that make little long-term business sense.

Sending the Right People: Managers often send people on overseas assignments who are capable but culturally illiterate. Just as

managers often send people abroad for the wrong reasons, they frequently send the wrong people. Not because they send people

who don‘t have the necessary technical skills.

A Drive to Communicate: Most expats will try to communicate with local people in their new country, but people who end up

being successful in their jobs are those that don‘t give up after early attempts either fail or embarrass them. To identify such

people, the most effective companies in our research scanned their ranks for employees who were both enthusiastic and

extroverted in conversation, and not afraid to try out their fractured French or talk with someone who is English was weak.

Cultural Flexibility: It is human nature to gravitate toward the familiar - but the expats who add the most value to their

companies by staying for the duration and being open to local market trends - are those who willingly experiment with different

customs.

Clarify expectations and objectives: To achieve the full potential of a reverse-expat program, senior executives need to make

sure everyone involved understands the purpose and takes it seriously.

Cross-Cultural Training: Cross-cultural training aims to improve expatriate managers' and their families' interaction of foreign

cultures and skills and abilities to cope with oversea work under cross-cultural environment.



SUMMARY AND CONCLUSION

A comfortable expatriation environment can be created between the countries with suitable and custom designed bilateral

agreements suitable for the countries. A comprehensive bilateral agreement explaining all aspects of international immigration

decisions design and development and frequent revisions based on needs of the economy and people can help in making the

expatriation productive. The current research shows individual employees are highly motivated for expatriation. However the

problems are expatriation are co-existed with the process and function. Hence, there is a fear, myths and lack of awareness is

prevailing in the sample area. The transparent, simple and affordable expatriate environment can help in perceiving the positive

attitude towards expatriation and serve the organization as per the requirements in the onsite projects.

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McGraw-Hill Irwin.

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Social, Evolutionary, and Cultural Psychology, 2(2), 56-68.

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expatriates in Central Asia. Public Organization Review. Springer Science + Business Media, pp. 209-219.

14. Salminen-Karlsson, M. (2006). Situating gender in situated learning. Scandinavian Journal of Management, 22, 31–

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15. Sambidge, A. (2009). Brit Expats Earn Double That Of Indian Counterparts.

16. https://hbr.org/1999/03/the-right-way-to-manage-expats

17. http://www.ufhrd.co.uk/wordpress/wp-content/uploads/2012/09/Exploring-the-Diverse-Development-Needs-...

18. http://www.hr-management-services.com/expatriate-management/

19. http://www.mckinsey.com/insights/organization/beyond_expats_better_managers_for_emerging_markets

20. http://www.wikiteka.co.uk/document/equs/

21. http://www.emeraldinsight.com/doi/full/10.1108/13527600710830331

*****

https://hbr.org/1999/03/the-right-way-to-manage-expats

http://www.ufhrd.co.uk/wordpress/wp-content/uploads/2012/09/Exploring-the-Diverse-Development-Needs-...

http://www.hr-management-services.com/expatriate-management/

http://www.mckinsey.com/insights/organization/beyond_expats_better_managers_for_emerging_markets

http://www.wikiteka.co.uk/document/equs/

http://www.emeraldinsight.com/doi/full/10.1108/13527600710830331



PERCEPTION OF GENERAL INSURANCE AGENCY AS A CAREER – A CASE STUDY

P. Balasubramanian22

INTRODUCTION

In today’s scenario, Insurance is a huge sector that provides services to the better services to the people who seek security for their

assets and life. Every insurance company strives to provide better services to its customers. For success of the insurance industry,

there is a need to change the mindset of the people working in and with the insurance organization .There is also a need of

creating awareness amongst the Indian masses. A sound organization structure provides qualitative services which may bring

better rating to the company as an index for the customer. An organization being a social entity is also required to help in the

upliftment of the society.

The study of perception about pursuing career as a general insurance consultant amongst three categories of respondents: Those

who have quit their jobs as an insurance consultant, those who are pursuing their career as an insurance consultant at the general

perception about general insurance agency as a career amongst the public. Acccordingly the scope of this study was defined to

cover the perception of general insurance as a career among three classes of the population. The study encompasses people who

have abandoned insurance as a career, those who are at present working as insurance consultant and also those who might take up

ninsurance consultancy in the future.

MEANING OF INSURANCE

Risk and uncertainty are incidental to life and are increasing day by day. Man may meet an untimely death. He may suffer from

accident, destruction of properly from fire, floods earthquakes and many other causes. Wherever there is uncertainty, there is risk

as well as insecurity. With a view to providing relief against risk and insecurity, the insurance came into being.

The business of insurance is related to the protection of the economic values of assets, every asset has a value. The asset would

have been created through the efforts of the owner. The asset would have been created through the efforts of the owner, because

he expects some benefits to get from it. The benefit may be an income or something else. It is a benefit because it meets some of

his needs. In the case of a factory or a cow, the product generated by is sold and income generated. In the case of a motor car, it

provides comfort and convenience in transportation. There is no direct income.

A human being is an income generating asset. One’s manual labor, professional skills and business acumen are the assets. This

asset also can be last through unexpectedly early death or through sickness and disabilities caused by accidents. Accident may or

may not happen. Death will happen, but the timing is uncertain. If it happens around the time of one’s retirement, when it could be

expected that the income will normally cease, the person concerned could have made some other arrangements to meet the

continuing needs. But if it happens much earlier when the alternate arrangements are not in place, there can be losses to the person

and dependents. Insurance is necessary to help those dependent on the income.

PERCEPTION

It is a cognitive process.

“Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give

meaning to their environment”.

INSURANCE AGENT

An insurance agent is an agent licensed section 42 of the insurance act 1938. He receives payment by way of commission or other

remuneration for procuring insurance business. He is also responsible for business relating to the continuance, renewal or revival

of policies of insurance. The agent cannot be an employee of an insurance company and the insurance act IRDA and the Indian

contract act govern his role as an agent. There are many types of agent deal with insurance business like, absorbed agent,

composite agent and corporate agent.

FUNCTION OF THE AGENT

The primary function of the agent is to procure business for the insurance company, prior to offering the policy; the agent has to

check out on the insurability of the proposer based on the principles of insurable of the interest and almost good faith. The

relevant information can be:

a. Paying Capacity.

b. Health and habits.

c. Age.

22 Assistant Professor (SG), Department of Management, Sri Ramakrishna Institute of Technology, Tamil Nadu, India,

[email protected]




AGENTS QUALIFICATION

In order to discharge the above duties to the satisfaction to the consumer, it is required that a person making an application for a

license to act as an insurance agent or as a composite insurance agent:

Is at least 18 years of age as on the date of application.

Has not been found to be a person of unsound mind by a court of competent, Jurisdiction.

Has not been found guilty of any kind of criminal conduct.

Posses the minimum educational qualification of a pass in 12th standard or equivalent examination conducted by any

recognized Board / Institute of education.

Agent can be Individual, a firm and a company formed under the companies act, 1956 and includes a banking company as defined

as cluses (4A) of section 2 of the act. Insurance industries in general have been experiencing major growth. To sustain this growth

rate, insurance companies needs to retain existing insurance consultants and also attract fresh talent to join the company as

consultants.

Insurance company’s has been experiencing significant rate of attrition among the consultants, therefore the companies wished to

understand the reasons for the insurance consultants leaving the company. It also needed to obtain the expectations of insurance

consultants working for other private general insurance companies. The scope of their study encompasses people who have

abandoned insurance consultant and also who are at present working as insurance consultant and also those who might take up

insurance consultancy in the future.

The data was collected from the individuals residing in Coimbatore, with the help of the questionnaire which was personally

administration or through telephone Interview and from magazines, books, pamphlets, websites etc….

The Job of general insurance consultant with the intention to earn an extra income (28%) or with the belief that it would provide

growth opportunities (26%) Around 64% of them felt the job was difficult, 36% responded that they did not see general insurance

agency as a good career option. Around 62% were working part-time as insurance consultant (86%) of the people who quit stay

that they are not willing to revert back to the general insurance agency job. Many respondents have quit their job as a general

insurance consultant because they perceive selling insurance as difficult and the career did not prove to be attractive among those

difficult.

They are of the opinion that the good rate of commission and the ability to earn extra income are the two attractive features of the

job. Though many are interested in earning additional income few want to take up the job as general insurance consultants. It does

not provide growth opportunities. It is suggested that the insurance company should address these negative perceptions through

suitable campaigns. Some ‘successor’ of ordinary insurance consultants can be published so that others may be motivated to take

up general insurance agency as a career.

AGENT

According to section 182 of the Indian contracts act, an ‘agent’ is a person employed to do any act for another or to represent

another in dealing with a third person. An insurance agent works on commission basis. He is paid a stated percentage of the

premium collected through his agency, sec40(1) of the insurance act stipulates that the maximum amount which can be paid to a

insurance agent, by way of commission or remuneration in any form, shall be 35% of the first year’s renewal premium.

Normally, under term assurance plans, commission rates are less. Similarly, for shorter duration policies, commission rates are

lesser than under longer duration plans, under single premium plans and pension/ annuity plans, rate of commission is very small.

AGENCY AS A PROFESSION

The insurance agent is bound by the terms of appointment of the insurer and is expected to procure business for the insurer. It is

not a job that he has to do at fixed hours, in prescribed ways and under close supervision. Once licensed and appointed, he is an

independent professional. He is the master of his time. He is not prevented from pursing any other interest or vocation. Many

agents see the agency as a means to earn a living. They may spend only part of the time on insurance, being busy on other work

the rest of the time. They are trying to become the best in the profession. A good agent is merely the plans offered by insurers, but

by the innumerable schemes on offer in the market. This needs study on one’s own.

CONCLUSIONS

The study reveals wide spread negative, perception about general insurance consultants among the general public. However

people currently employed as insurance consultants are satisfied with the profession. It can therefore be inferred that the negative

perception is due to lack of authentic information. The continued growth of the company depends on attracting and retaining

talent. The company should therefore address the gap in perception and promote both general insurance and career in selling

general insurance.



QUESTIONS FOR DISCUSSIONS

1. Discuss the role of insurance Industry in India?

2. Explain the functions of an Agent per regulation of IRDA?

3. What is the eligibility skills required for an Agent to play in Insurance Industry?

4. Did Insurance Industry contribute to the economic development of the country?

REFERENCES

www.irda.org

www.insuremagiz.com

Life Insurance Agent’s licensing centre for Management Development, New Delhi.

C. R. Kothari, “Research Methodology Methods & Techniques”, Wishwa prakashan, Second Edition.

Richard, I. Levin, and David S. Rubin, (2002). “Statistics for Management”, 7th edition.

TEACHING NOTES

FIELD CASE

PERCEPTION OF GENERAL INSURANCE AGENCY AS A CAREER – A CASE STUDY

Courses and Levels for Which the Case is Intended

Finance (Area of Interest).

Insurance and its importance.

Teaching Objectives

1. Make the wards / students to know about the Insurance Industry are a huge sector that provides services to the people

who seek security for their assets and life.

2. To know the perceptions about general Insurance Agency as a career plays a role in understanding the people about

general insurance.

3. Make success of the insurance industry, there is a need to change the mindset of the people working in and with the

insurance organization.

4. The Coimbatore city is becoming an industrial hub which has generated major revenues for the economic development

of the country.

5. Agent as a profession and its role.

Theory Application

Principles of Insurance / Insurance and Risk management.

Suggested Teaching Approaches

Role of contribution of Insurance Industry in India.

Scope and Importance of Insurance.

Agent as a profession.

Perception of general Insurance Agency as a career makes success for economic development.

*****

http://www.irda.org/

http://www.insuremagiz.com/



AN INTEGRATION OF NATURE & CULTURE IN THE POETRY OF SAROJINI NAIDU:

A CRITICAL STUDY

Rajendra Singh23

In the techno-savvy globalized world, we are proceeding towards more and more development leading to more luxurious life with

a great threat to nature and environment. There is no place for emotions, feelings and sentiments. Man has become very

professional and forgotten his rich and glorious nature and culture. This is why our chief concern is how to face multiple

environmental challenges facing the world today. We have exploited the nature to our optimum utilization without least

considering the fact that excess of anything is bad. We are responsible for what we have created. The ultimate suggestion is to

maintain balance between rural and urban population of the country minimizing various factors contributing to its decaying

future. Man can raise himself on the moral and spiritual planes by living a life of simplicity in the lap of Nature. The more

sophisticated our life becomes, the more miserable we are. The evils of life are the results of selfishness, guile, deceit which are

the offshoots of artificiality, materialism and other dirty thought. Fortitude and moral strength can help man rise above evil and

nature is the great source of fortitude, moral strength and divine providence.

The main thrust of this paper is to highlight some significant aspects of nature and culture in the poetry of Sarojini Naidu. In her

poetry nature is presented as soothing, sympathetic and benevolent. She deals only with the beautiful, the homely and life-giving

and life-protecting aspects of nature. The ugly and destructive aspects of nature are rigidly excluded. Nature in her poetry is a

source of sensuous pleasure and sanctuary peace. As a folk-poet, Sarojini presents a colourful pageant of the life of the Indian

masses and of their diverse occupations, customs, traditions and beliefs. She makes efforts to bridge the gap between Nature and

Humanity through her poetry. Since art and culture of our land make us aware of our existence, hence, the loss of culture implies

loss of our natural sensibility.

‘The Golden Threshold’, Sarojini’s first major collection of poems depicts the life of common people of India engaged in their

day today activity. In the simple, traditional life and work of the common masses, she sees the unbroken flow of Indian life

through the centuries. In some of these poems, she also shows in a subtle but unmistakable manner, the relationship between

human life and the moods of nature. In ‘The Bird of Time’ the theme of love predominates- love in nature no less than in human

life. In ‘A Song from the North’ a girl entreats the papeeha not to sing its love-ditty as it brings back memories of her own lover

who is far away. But there are also many songs permeated with the sadness of death, particularly the sorrow of an Indian widow.

In ‘The Broken Wing’ as in ‘The Bird of Time’ she shows equal attraction for the Hindu and the Islamic traditions.

Sarojini’s deep and true love of Nature is manifested not only in her observations about Nature in her poems but also in her

letters. In one of her letters to ‘Edmund Gosse’ she wrote:

“Come and share my exquisite March morning with me; this sumptuous blaze of gold and sapphire sky; the

voluptuous scents of neem and champak and shirisha that beat upon the languid air with their implacable sweetness;

the thousand little gold and blue and silver-breasted birds bursting with the shrill of life in nesting time. All is hot and

fierce and passionate; ardent and unashamed in its exulting and importunate desire for life and love. And do you

know that the scarlet lilies are woven petal by petal from my heart’s blood, these little quivering birds are my soul

made incarnate music; these perfumes are my emotions dissolved into aerial essence, this flaming gold and blue sky

is the “very me”, that part of me which incessantly, yes, and a little deliberately, triumphs over that other part ……. a

thing of nerves and tissues that suffers and cries out and must die tomorrow perhaps or twenty years hence.” 1

Sarojini’s selfless love for the concrete beauty of nature as manifested in its various flowers, birds, seasons and scents inspired the

two series of nature-poems – first ‘Songs of The Springtime’ which contains ten poems and the second ‘The Flowering Year’

contains six poems. Apart from these two series of nature poems which reveal her abiding interest in and sustained love for

Nature, there are other poems which celebrate the external charms of nature. They are ‘In Praise of Henna’, ‘Leili’, ‘Spring in

Kashmir’, ‘The Gloriosa Lily’, ‘The Water Hyacinth’ and ‘On Juhu Sands’. These are the poems in which Nature is a measure

theme but there are still others in which Nature is not a theme but a background. Padmini Sengupta says, “Nature is to her what it

was to Tennyson – a background for the portraiture of human emotions.”2

Sarojini is mainly a poet of seasons like Aurobindo Ghose but the only season which captivates her imagination is spring. The

seasonof summer is celebrated in her two poems, autumn in only one and winter in none. Sarojini celebrates flowers and the

season of Spring and her approach to nature is like that of Tagore, sensuous and passionate but she believes only in the sensuous

perception of nature’s beauty whereas Tagore is a sensuous mystic. Tagore and Wordsworth are led by the external nature to what

lies behind it – the divine presence – but Sarojini enjoys the colours, the scent, the beauty and the music of the spring. Just mark

the sensuous picture of spring:

“Poppies squander their fragile gold ……..

Coral and ivory lilies unfold

Their delicate lives on the lake.

Kingfishers ruffle the feathery sedge,

And all the vivid air thrills,

23Department of English, G. B. College, Bihar, India, [email protected]




With butterfly wings in the wild-rose hedge

And the luminous blue of the hills.”

“Spring”

For Sarojini, Nature is ‘a sanctuary of peace’ a retreat from the tumult of the crowd and freedom from its strife. It is a perennial

source of joy, comfort and rest for the tired spirit beset with the cares and worries of life. In ‘Solitude’, she addresses her own soul

and says:

“Let us climb where the eagles keep guard on the rocky grey ledges,

Let us lie beneath the palms where perchance we may listen and reach,

A delicate dream from the lips of the slumbering sedges,

That catch from the stars some high tone from their mystical speech.”

The poem concludes with the hope that ‘we may glean a far glimpse of the Infinite Bosom in whose glorious shadow all life is

unfolded or furled’. Here is a call for a transition from man to nature. Nature is not the final destination but a resting place on the

way to the Infinite.

In ‘Summer Woods’, Sarojini make no such reference to God. Here, the idea is merely to leave behind the cares and even the

luxuries of even urban life and seek the kind of joy which only nature can offer. The message is that even love can find its

fulfillment, and yield its purest pleasure, only when hearts are attuned to the music of nature. The lady in this poem is ‘tired of

painted roofs and silken floors.’ She longs for the crimson canopies provided by gulmohar trees. She is weary of strife, and even

of ‘song and festival and fame’ and seeks the shelter in the cassia woods.

Sarojini’s response to nature is one of adoration like that of our Vedic ancestors. A number of hymns to the objects and forces of

nature are scattered up and down her poetry. She shows her particular affection for the sun and sunshine. In the ‘Harvest Hymn’,

the farmers express her love and gratitude for ‘lord of the morn’ and ‘lord of the harvest’:

“O giver of mellowing radiance, we hail thee,

We praise thee, O Surya, with cymbal and flute.”

Sarojini’s particularly fond of the bright, clear sunshine which illumines the landscape of India. She also expresses her deep

feeling for the subdued light of the setting sun, as is expressed in ‘June Sunset’.

Again in the ‘Harvest Hymn’ the farmers express the poet’s own adoration and gratitude for the beautiful earth, “the Queen of the

gourd flower, the queen of the harvest.”

Sarojini expressed her Indian ethos in the ‘Hymn to Indra’ in which the people pray to the ‘Lord of Rain’:

“Thou, who with bountiful torrent and river

Dost nourish the heart of the forest and plain,

Withhold not Thy gifts, O Omnipotent Giver

Harken, O Lord of Rain.”

In the ‘Harvest Hymn’ there is invocation to Varuna:

“Lord of the rainbow, lord of the harvest,

Great and beneficent lord of the main!

Thine is the mercy that cherished our furrows,

Thine is the mercy that fostered our grain ……..

O sender of rain and the dewfall, we hail thee,

We praise thee, Varuna, with cymbal and pipe.”

Nature is the external environment of man, and Sarojini looks at it with a child-like, open-eyed wonder. She shuts her eyes to the

ugly and the terrible in nature. Similarly, she does not philosophies nature. She is neither pantheistic like Wordsworth nor cosmic

like Tagore.

Sarojini draws loving pictures of gulmohurs, golden cassias, nasturtiums, champak blossoms, wild lilies, and the bright

pomegranate buds. She offers the fragrant odours of henna, sirisha and neem and gives a chance to hear the melodious songs of

various birds and the buzzing of bees. It is altogether a picture of lost innocence to us, in modern India, caught up as we are in

fever and fret of a culture increasingly entrapped in materialism and modernity. She neither spiritualizes nor intellectualizes

Nature but is content to describe the beauties of Nature as an aesthete, as Keats. Nor does she see Nature as a moral teacher as

Wordsworth did. Nature for her is an objective existence. Nature’s variegated colours – opal, gold, yellow, purple, greenand red;

perfumes- champa, champak, henna, rose, saffron, cinnamon, sandal and clove; melodies released by the bulbul, koel and the

papeehas; and the soft touch of breeze enchant and posses her, make her nerves tingle . These give her poetry similies, metaphors

and varied images.



Images used in her treatment of Nature are sensuous, impassioned, profuse, rich and luxuriant, hence romantic. They are striking,

fresh and new, breaking new grounds, taken as they are, from Indian legend, history, mythology and life as a whole;

“The sea is our mother, the cloud is our brother,

the waves are our comrades all,

The village maiden longs to go

To the koel-haunted river-isles where lotus,

lilies glisten.”

“The Coromandel Fishers”.

According to Rajyalakshmi, Sarojini’s poetry:

“Unfolds the beauties, the transformations, and the significances of our natural world. It reveals a world of colour,

perfume and melody, and a sense of being permeating every pore and nook and cranny of our sensate landscape.

Nature, in its human context, and man in his natural context, the two themes are integrated into a simple unity in

Sarojini’s poetry. Of all our early Indian poets of this century, Sarojini has outstandingly recaptured the early Indian

responses to our natural environment, as they are found reflected in the poetry of a Balmiki, or a Kalidasa. Specially,

she comes endearingly close to the kind of lyric enchantment that one finds Nature exercising over man, bird and

beast in Kalidasa’s Shakuntalam.”3

Sarojini, the poetess of Indian thought and sensibility, presents through her poetry Indian fauna and flora, Indian customs and

traditions, festivals and celebrations, Indian men and women, Indian myths and legends, Indian fairs and feasts. To a great extent,

her poetry is a mirror to India, not the industrialized India, but the Victorian India full of peace and calm. The landscape, the

characters, the images and the milieu in her poems are typically Indian. Her aspirations, longings, moods, visions and expectations

are Indian. In her creative work, she reveals herself as an Indian poetess, after having soaked in herself ancient culture of her

country, its tradition and originality.

Sarojini’s outlook as a poet of Indian life is secular as major Indian religions, all segments of Indian society and all aspects of life

– even great men of India and the great cities of India, occupy her attention. Her belief in India’s unity, her hope of a better and

brighter India, as aspiration for freedom both political and spiritual, her patriotic fervour and zeal and her concern for the common

people of India make her essentially a poet of India in the same manner as Walt Whitman is the poet of America.

Sarojini has given poetic and picturesque expression not only of India’s temples, festivals, wandering pilgrims and singers,

grinders and weavers but also of its love of solitude, spiritual strivings and mystical leanings. Though she is not a mystic poet like

Tagore, and Aurobindo, yet in a number of poems, she sings of soul, of God, of Life and of Death. Her belief in God and in the

immortality of soul is also in accordance with the age-long Hindu-belief. Here are a few jottings from her serious pilgrimages –

“Life is a prism of My light,

And Death; the shadow of My face.”

“To a Buddha”

How shall we reach the great, unknown

Nirvana of thy Lotus-throne?

“To a Buddha”

“Life is a stately stalactite of dreams,

Of carnival of careless joys”

“To Life”

Sarojini Naidu represents in her poetry not only the Hindu ethos but also the Muslim culture in her poems like ‘The Purdah

Nashin’, ‘A Persian Song of Love’, ‘The Prayer of Islam’, ‘The Imam Bara’ and a few other poems. She reveals her interest in

Muslim culture, evincing her secular attitude, tolerance and width of sympathy. ‘The Prayer of Islam’ shows her acquaintance

with some of the ninety-nine beautiful Arabic names of God. He is addressed as Hameed, Hafeez, Ghani, Ghaffar and the like.

India, being a land of diverse creeds-Hindu, Muslim, Christian, Sikh and Parsi, Sarojini makes her readers conscious of the

fraternal co-existence, of unity in diversity, of the fundamental oneness and brotherhood. Her poem “Call to Prayer” is confluence

of such diversities.

The folk poetry of any country has largely been oral and it deals with the customs, beliefs, traditions, superstitions, aspirations,

simple joys and sorrows, occupations, in short, with almost every aspect of life of the folk or the masses, particularly in a rural

setting. Its appeal has been popular to audiences rather than to literary elite, and hence, it has been characterized by simplicity of

treatment. The importance of the folk-theme in her poetry is seen in the two sections of her collections of poems entitled – ‘Folk

Song’ and ‘Indian Folk Songs’. In her folk-poetry, Sarojini is able to capture all the qualities of traditional folk-poetry and its

inspiration leads to her poetry a vitality and spontaneity. Through her folk-poetry she portrays the common life went around her.

She achieves an artistic identity with the life of the community, with folk culture and wisdom which is age-old as it has been

transmitted from father to son over countless generations.



P.V. Rajyalakshmi also observes:

“Despite the political polarization and tension between the Hindu and Islamic sides of the Indian personality, there

has also existed a synthesis and fusion of their religious and spiritual elements in the folk-culture. In rural India, the

Hindus pay homage to Muslim saints, while the Muslims exchange gifts and benedictions with the Hindus on festive

occasions. Steeped in the folk customs and rituals, Sarojini captures the true folk-spirit of Muslim folk festivals…It

aims at a reintegration of the individual into the total culture, through a revival of the memories of sacred history.”4

Innumerable myths and legends are a part of folk-consciousness which rightly provides a background to a number of Sarojini’s

folk-songs. Village Song is a folk song sung by the Indian maiden who must go a long way to the outskirts of her village or the

river-bank, to fetch home her daily pitcher of water. ‘Panghat’ is one of the familiar haunts of Indian village women. In the poem,

the folk-heroine is presented in search of her lover, terrified by her own daring. She seeks the guardianship, guidance and active

assistance of the spirits of Nature. She evokes the gods of the wood, and the river and the presences that fill the lonely spaces of

the rural wilderness. The poem is built on the theme of Radha and Krishna, the ‘Village Song’ remains faithful to the spirit of

Indian folk-song.

Similarly, her poems on a number of great contemporary personalities—Gandhi, Jinnah, Gokhale, and Tilaketc are related to the

Indian heroic tradition. Her portraits have an unmistakable stamp of folk-lore, as the moral and ethical background is provided by

popular Indian myths and legends. The mythical and legendary background of ‘The Flute Player of Brindaban and the Kanhaiya

group of poems’ are obvious.

Sarojini’s poems in actuality deal with the vast panorama of Indian life. No significant aspect of Indian life remains untouched by

her. In her poems, we come across a cross-section of the Indian society of her day from gypsies to the princes. Her depiction of

India is comprehensive and realistic. She depicts with beauty, grace, love, sympathy and penetration the changing seasons, the

rivers and lakes, beaches and forests, flowers and birds, men and women of different ethnic and cultural backgrounds, engaged in

diverse vocations and exhibiting various skills. Since she ignores the harsh and ugly aspects of life and does not touch upon the

modern industrialized life, her view of India is somewhat romantic and sentimental, though her treatment is realistic. Her

contribution to the development of culture is invaluable. As a poet is deeply influenced by the environment she lives in, Sarojini

Naidu was deeply associated with the landscape of the South; that is why the northern landscape is significantly missing from her

poems.

Sarojini’s depiction of India is comprehensible and all inclusive. She takes delight in nature as well as in the life of Indian

humanity. She depicts with love, sympathy and penetration, the changing seasons, the rivers and lakes, beaches and forests,

flowers and birds, men and women of different ethnic and cultural backgrounds engaged in diverse vocations and exhibiting

various skills. All these blended together, and to some extent, idealized by her imagination, constitute her total picture of India.

In the short lyric “Transience” the poetess strikes an optimistic note which is rooted in the Hindu view of cosmic law. In the

cosmic scheme of things, there is constant renewal and growth; there is also constant joy, because the beauty and joy of nature are

an expression of the divine joy in the work of creation. It is ever continuing, so nature is always beautiful. Man should learn this

lesson from contemplation of nature. Man may be sad, but the dawn continues to be beautiful. In spite of his grief, Spring returns

at its appointed time and nature is rejuvenated. The lotus again blossoms beautifully and the ashoka leaves and flowers are

beautiful once again. The cosmic principle is the principle of beauty and joy, and this principle governs human life, as much as, it

governs the life of nature. Man should draw consolation from this fact; and his grief, too, is bound to be followed by joy. This

simple faith is expressed without any metaphysical destiny and it is rooted in the folk-experience of India, which cuts across

religious diversities and cultural differences. Here the poet strikes an optimistic note:

Nay, do not grieve tho’ life be full of sadness,

Dawn will not viel her splendor for your grief,

Nor spring deny their bright, appointed beauty,

To lotus blossom and ashoka leaf.

“Transience”

REFERENCES

1. Gupta, Rameshwar, (1975). Sarojini, The Poetess, Doaba House, Delhi, p.80.

2. Sengupta, Padmini, (1974). Sarojini Naidu, Sahitya Akademi, New Delhi, p.96.

3. Rajyalakshmi, P. V., (1977). The Lyric Spring, A Study of the Poetry of Sarojini Naidu, New Delhi, Abhinav

Publications, p.84.

4. Op. cit. p. 104.

5. Gokak, V. K.: (ed) The Golden Treasury of Indo - Anglian Poetry: (1828-1965), New Delhi, Sahitya Akademi, 1970.

(Lines of poetry have been cited from the book.)

6. Das Gupta, and Mary Ann: (ed), An Anthology of Poetry in English by Indian Women: Calcutta.

Writers’ Workshop, 1978 (Lines of poetry have been cited from the book.)

*****



THESIS ABSTRACT

ON

A STUDY ON HRD CLIMATE IN HEALTH CARE INDUSTRY

WITH SPECIAL REFERENCE TO COIMBATORE CITY

BY

D. Raja Jebasingh24

DECLARATION

The thesis was submitted to Bharathiar University, Coimbatore, Tamilnadu, India, in May 2010, for the award of Ph. D. Degree,

December 2010, under the supervision of Dr.S.Renugadevi, Professor and Head in PG and Research Department of International

Business, SNR Sons College (Autonomous), Coimbatore, Tamilnadu, India.

INTRODUCTION

Human resource development has been broadly quoted as the principle mechanism for socio-economic development. Since the

mid-1980’s, a wave of ‘new’ growth theories has been focusing on human resource development as key input to both the ‘use of

ideas and the production of ideas’. Large stocks of human capital enable to adapt new ideas readily and acquire technological

capability.

International Labour Organization’s (ILO) global report on information technology (2001) pointed out the full benefits of the new

wave of technological change which cannot be reaped without promoting a knowledge economy that puts a large premium on

acquiring appropriate qualification and demand driven skills.

Human resource is considered as the epicenter of the health care industry and believed that human resources play the most critical

and significant role in achieving organizational goals and success. Human capital has been recognized as the organization’s life

blood, which needs to be developed continuously keeping pace with the development in all other areas of today’s dynamic work

environment.

The most important outcome of an effective HRD system is that it opens up good employment opportunities by enhancing

worker’s ability to secure and retain job, progress at work and to cope with the change. A knowledgeable workforce, one that is

both highly skilled in a particular occupation and also exhibits flexibility, is seen as the most important human capital resources

for the development of a county.

In the emerging global market place, human capital will matter more to enterprises than physical capital, and human capabilities

will determine the value of enterprise (ILO, 2000). In today’s modern era, the quantity of employment cannot be divorced from its

quality. HRD issues are directly linked to the quality rather than quantity. It could be related to different forms of work and also to

different conditions of work, as well as feelings of value and satisfaction.

HRd climate is a concept which refers to the perception of employees of an organization about the HRD programmes of

management towards workforce. HRD climate (HRDC) is characterized by the tendencies such as treating employees as the most

importance resources, perceiving that developing employees is the job of every manager, believing in the capability of employees

is the job of every manager, believing in the capability of employees, communicating openly, encouraging risk taking and

experimentation, making efforts to help employees recognize their strength and weakness, collaboration and autonomy and

supportive HRD practices.

HEALTH CARE INDUSTRY SCENARIO

The Indian health care industry is poised to grow at a compounded annual growth rate of 15 percent. Nearly 90 percent of this

growth will come from the private sector. Further, private hospitals in the country are expected to rate in $35.9 billion (Rs.

147,154.1 crore) in 2012 compared to $15.5 billion (Rs. 63,534.5 crore) in 2006. Funds in the Indian health care sector have been

largely private. Government spending on health care infrastructure is projected to rise only marginally, by 0.12 % of GDP and is

expected to meet 12% of the huge investment required in the health care sector, with the private sector providing some 88% of

investments requirements.

24Assistant Professor, P.G. Department of Commerce, St. Joseph’s College of Commerce (Autonomous), Bangalore, Karnataka,

India, [email protected]




Hence, the private sector will be a key player in driving the future growth of Indian’s health care sector. The private sectors are

expected to grow in the future. It is estimated that out of the 1 million beds to be added by 2012, the private sector will contribute

8, 96,000 beds.

Government spending on health care infrastructure is projected to rise only marginally, by 0.12 % of GDP and is expected to meet

12% of the huge investment required in the health care sector, with the private sector providing some 88% of investments

requirements. Hence, the private sector will be a key player in driving the future growth of Indian’s health care sector.

OBJECTIVES OF STUDY

The present study is designed to examine the human resource development climate (HRDC) in health care industry at Coimbatore

in Tamilnadu state. The specific objectives are:

To assess the nature of state of HRD climate (HRDC) in health care industry.

To evaluate and compare the employees perception towards the various dimensions of HRD climate (HRDC).

To measure the level of the relationship between the various dimensions of HRD climate (HRDC) as applicable to

health care industry.

To determine the factors influencing the HRDC and contributing to the rating of hospitals.

To offer suitable suggestions for workable HRD climate (HRDC) enhancement proposal in health care industry.

RESEARCH METHODOLOGY AND DESIGN

Research Approach

The research approach selected for the study was an exploratory descriptive survey as per the nature of the study. This descriptive

survey was concerned with the practices that prevail, beliefs, points/ attitudes that are held/ process that are going on etc.

The present study was concerned with the collection of information on prevailing HRDC in the hospitals of Coimbatore. For this

purpose, an exploratory descriptive survey approach was considered most appropriate.

Research Setting

The hospitals located in Coimbatore were selected for the study by using purposive sampling. They are largest corporate health

care providers in multispecialty hospitals. They are pioneer in state-of the art medical care in the field of medication with

superspeciality services. The hospitals are in the form Trust, Corporate and Sole proprietorship.

Sample of Study

Keeping in view the nature of the problem, the objectives of the study and a sample size of 450 staff from different categories

working in the hospitals was considered adequate.

The sample consists of doctors, nurse and paramedical staff working in different levels of management. Simple random sampling

method was adopted for selecting the respondents from all specialized areas available in each hospital.

Sources of Data

The study was based on both primary and secondary data. For the primary data well structured questionnaire developed by the

researcher on the basis of 10 dimensions was prepared and used.

Secondary data required for the study was collected from various sources like, text books, reference books, collections of

clippings of research articles, news items, and statistical data base, official records of hospitals, statistical gazettes published by

Government and non-Government departments of repute.

Statistical Analysis

Responses collected from the respondents have been thoroughly analyzed with the calculation of all meaningfully applicable

statistics making use of suitable statistical methods such as Simple percentage analysis, scaling technique, Correlation analysis, F-

test, ANOVA,Multiple regression analysis, Path analysis, Factor analysis,etc.



SUMMARY OF FINDINGS

Majority of the doctors have 2-3 dependents and majority of the nurses and paramedical have 3-4 persons as their

dependents.

Majority of the doctors have PG qualification and majority of nurses and paramedical staff posses UG qualification only.

The study revealed that majority of the respondents from all the three categories were having an experience of less than 10

years and a minimum number of respondents belong to the category of above 20 years in case of doctors, 20-25 years in

case of nurses and above 25 years in case of paramedical staff.

It is revealed by the study that top management commitment to HRD climate has been fairly better for doctors than nurses

and paramedical staff.

Performance appraisal: The analysis of the data revealed that doctors received satisfactory appraisal than other two

categories of respondents.

Study showed their nurses have received good encouragement from their employees than the doctors and paramedical staff.

Analysis showed that doctors enjoyed comparatively good working environment than nurses and paramedical staff.

Path analysis revealed that the dimensions superior subordinate relationship, employee development activities and

encouragement initiatives regarding doctors, dimensions employee developmental activities, rewards and benefits and work

environment in case of nurses and Personnel policies, training and development, encouragement and initiatives and rewards

and benefits regarding the paramedical staff have been regarded as important dimensions and substantially contributing to

HRDC in hospitals.

RECOMMENDATIONS

The below recommendations will definitely help the hospital management to improve the positive HRDC and to get the

competitive edge.

A strong HRD department is necessary to ensure continuous development in sharpening the managerial and technical skills

and competencies of the employees, best talent for the organization.

It is suggested for the hospitals to discuss the problem in time by getting regular feedback, creating openness and

encouraging them to take initiative to do new things.

Linking reward to performance like awards for excellent performance, sustained performance, in the form of best career

award to ensure long-term association with the hospitals.

The hospitals may try to take efforts to ensure facing the challenges of cutting edge of technology with elaborate area

planning exercise. This will foster meaningful work by transforming hospitals into modern day organization which can be

built around patient care and needs of staff.

Personal touch may be inculcated to maintain relationship with its staff by ensuring the well being of the employees and

appropriate strategies may be tried in achieving efficient patient care.

CONCLUSIONS

In a country like ours, an important asset is quality manpower in all aspects giving importance to the health. It is a well known

factor that all categories of professionals such as doctors, nurses and paramedical staff are equally important. Their coordinated

efforts, team –spirit along with their individual capabilities enable the hospitals to provide effective health care to the patients.

In conclusion, the hospitals in general and particularly the sample hospitals may take the study and findings and suggestions as a

guideline to provide competitive service to the suffering people.

“Let the appropriate climate in the health care industry ensures quality manpower to the country”.

*****

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