volume 05 july 2016 number 01 -...
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Volume 05 July 2016 Number 01
A STUDY OF PREFERENCE FACTORS OF
CONSUMERS IN MULTIBRAND RETAILING
Dr. A. R. Srivastava
Recognised by UGC Under Section 2(f)
A COMPARATIVE STUDY OF DISCLOSURES
PRACTICES OF SELECTED INDIAN AND U.S. BANKS
Ms. Meenakshi Chawla
Prof. Pramod Kumar
INTELLECTUAL PROPERTY RIGHTS GALLOPING INDIA
THE SUCCESS WAY: STUDY OF INNOVATION AND
COMPETITIVENESS IN THE INDIAN CONTEXT
Mayank Sharma
EFFECT OF WORKPLACE BULLYING ON EMPLOYEES
PRODUCTIVITY IN THE PRIVATE ORGANIZATIONS
WITH SPECIAL REFERENCE TO DELHI & NCR.
Shaifali Garg
Dr. A. K. Srivastav
ASSESSMENT OF TRADITIONAL AND EGALITARIAN
GENDER ROLE IDEOLOGY AMONG SINGLE AND DUAL
EARNING FAMILIES
Dr. Neha Saxena
EMOTIONAL INTELLIGENCE AND EMPLOYEE ENGAGEMENT:
KEY TO RETENTION
Priyanka Jain
Dr. (Prof) Taranjeet Duggal
CASE STUDY: AN EFFORT OF FARIDABAD ENTREPRENEURS
FOR ENERGY EFFICIENCY
Bindu Agrawal
Executive Editor
Keeping an eye on Kaleidscopic range of issues influecing the business management and administration Prastuti - Journal of Management and Research forays into the realm of advances and a melioration being made in the field of managment practices and studies. It provides a podium for the dissemination and experimentation for practices and policies of the business managment and administration. Prastuti (ISSN 2320-2262) is published annually by the institute of Business Managment, GLA Universtity, Mathura.
GLA University of PRASTUTI, Journal of Management & Research assumes no responsibility for the views expressed or information furnished by the authors.
Please direct all the manuscripts, editorial correspondence and subscriptions by D.D. in favor of GLA University, payable at Mathura to the EDITOR-IN-CHIEF, PRASTUTI, Journal of Management & Research, Institute of Business Management, GLA University, Mathura-281406, Ph. No.: +91-5662-250718, E-mail: [email protected]
Vol. 05 - No. 01 © 2016 Institute of Business Management, GLA University, Mathura
Prof. D.S. Chauhan, Vice-Chancellor, GLA University
Prof. Anand Mohan Agrawal
Dr. Ankit Saxena
Editor’s Preface
The world trade and industry gamut has gone under notable revolution in last few months in
many aspects. The global economy is in the evolution of resurgence, combating the several issues like
international terrorism and inter-continental political issues. In India, we witnessed a diverse economic
pour. There have been numerous growth oriented initiatives and reforms, however the desired outcome is
yet to realize. With all around focus on industrial growth and equally supported by efforts at not only at
macro but also at micro level from each and every player of the game.
Coming to the current issue of this journal, I am pleased to inform that, we have published seven
quality publications spreading different functional areas of Management domain. The papers have
approached to various domains of business management, life management as well as economy.
Srivastava in his contribution entitled “A Study of Preference Factors of Consumers in Multi-
brand Retailing” has studied that organised retail was flourishing in India unlike other states Jharkhand
also witnessed the entry of Multibrand retail chains like Reliance, Vishal, Spencer, Big Bazaar but all of
them could not sustain. Spencer exited Jharkhand soon followed by closure of Vishal twice in Dhanbad.
This signalled that just opening of stores would not work. Retailers need to understand the changing
preferences factors affecting consumers buying to be successful in the long run. This study is an attempt to
identify the consumer preference factors in Multibrand retailing. Factor analysis has been used to identify
the preference factors.
Chawla and Kumar in another empirical research paper viz. “A Comparative Study of Disclosures
Practices of Selected Indian and U.S. Banks” have truly highlighted that Disclosure practices in banks
become very important to decision makers in the era of today’s knowledge-based economy. As a result,
each banks takes attempt to disclose its information to insiders and outsider decision makers. In fact, it is
becoming an integral part of annual report. The current study shows disclosure practices of selected
Indian and U.S banks and considered some micro structure variables i.e. Net profit, Staff Productivity,
Non Performing Assets and ROE in assessing their effect on the disclosure practices and reaches the
conclusion that these micro structure variables are significant affect on disclosure practices.
Sharma in his research article on “Intellectual Property Rights Galloping India the Success Way:
Study of Innovation and Competitiveness in the Indian Context” derive that the twenty-first century will
be the century of knowledge, indeed the century of the intellect. This research paper looks at the broad
contours of India’s current IPR regime and offers an assessment of the current situation as well as
scenarios for continued advancement. Author also looks at the case study of fostering innovation in
India’s pharmaceutical sector. Finally, this essay puts forth solutions for removing bottlenecks and
helping India create a more robust and stable IPR regime.
Garg & Srivastav in their empirical research work exploring “Effect of Workplace Bullying on
Employees Productivity in the Private Organizations with Special Reference to Delhi & NCR” talks about
organizational challenges which are always not measured by their wealth but their employees who face
challenges in the form of changing composition not only by work pressure but also by peer pressure and
attitude of the work force where prolonged mistreatment at the work place would have significant impact
on the employee’s productivity. This research paper aims to review the studies and examine the
effectiveness of Workplace Bullying on Employees’ Productivity in private organizations. This research
paper is Descriptive in nature and makes use of primary data as well as secondary data and explored that
being a victim of bullying can lead to adverse effects which cause psychological and physical health
problems.
Saxena in her research work on “Assessment of Traditional and Egalitarian Gender Role Ideology
among Single and Dual Earning Families” comprehend that in recent past most significant social
transformation in India has been the increase in dual earning couples. Therefore the objective of the
present research was to identify the gender role ideology prevalent in single and dual earning couples.
Findings suggest that most of the males and females have traditional gender role ideology, but the shift
toward egalitarian gender role ideology is occurring gradually. Perception of dual earner couples is
changing more rapidly than single earner couples.
Jain & Duggal in their research paper entitled “Emotional Intelligence and Employee
Engagement: Key to Retention” have examined the effect of emotional intelligence on talent retention
through employee engagement. As talent retention is an outcome of employee engagement hence its
worth to study it in relation to engagement. The statistic results reveal a significant strong relationship
between emotional intelligence and employee engagement. The study also indicates that a good level of
engagement may lead to high employee retention.
Agrawal in her thought provoking case study on “Case Study: An Effort of Faridabad
Entrepreneurs for Energy Efficiency” derive that India a fastest emerging economy is heavily dependent
on energy for industrial development and growth which will lead to achieve the human development
goals. The country’s energy supply and demand has been a challenge for all including the Government as
it needs to create the opportunities for increased power generation and dissemination or alternative
arrangements. Various initiatives by the Government, organizations and industries regarding energy
consumption and efficiency have been taken. This case study is about one such initiative by the Faridabad
Small Industries Association. Faridabad Small Industries Association (FSIA) has initiated the Word Bank
Funded project for the Faridabad industries.
I take this opportunity to invite all the professionals, researchers and academicians to send their
conceptual or empirical papers, case studies and book reviews for publishing in this journal. Finally, I
thank all the reviewers for their time and valuable suggestions and also congratulate all the contributors
for their research.
Anand Mohan AgrawalEditor-in-ChiefPrastuti
Contents
1. A STUDY OF PREFERENCE FACTORS OF CONSUMERS
IN MULTIBRAND RETAILING 01-13
Dr. A. R. Srivastava
2. A COMPARATIVE STUDY OF DISCLOSURES PRACTICES
OF SELECTED INDIAN AND U.S. BANKS 14-27
Meenakshi Chawla, Prof. Pramod Kumar
3. INTELLECTUAL PROPERTY RIGHTS GALLOPING INDIA THE
SUCCESS WAY: STUDY OF INNOVATION AND COMPETITIVENESS
IN THE INDIAN CONTEXT 28-45
Mayank Sharma
4. EFFECT OF WORKPLACE BULLYING ON EMPLOYEES
PRODUCTIVITY IN THE PRIVATE ORGANIZATIONS WITH
SPECIAL REFERENCE TO DELHI & NCR 46-55
Shaifali Garg, Dr. A. K. Srivastav
5. ASSESSMENT OF TRADITIONAL AND EGALITARIAN
GENDER ROLE IDEOLOGY AMONG SINGLE AND DUAL
EARNING FAMILIES 56-61
Dr. Neha Saxena
6. EMOTIONAL INTELLIGENCE AND EMPLOYEE ENGAGEMENT:
KEY TO RETENTION 62-67
Priyanka Jain, Dr. (Prof) Taranjeet Duggal
7. CASE STUDY: AN EFFORT OF FARIDABAD ENTREPRENEURS
FOR ENERGY EFFICIENCY 68-71
Bindu Agrawal
Retailing has been there with our life since generations. Indians cannot think of their life without retailing. Retail outlets are available in every nook and corner of India. Retailing has evolved as one of the fastest growing industry in last two decades. The changing lifestyles of consumers have supported the growth as well as acceptance of the organised retail.Yet the organised retail sector is still evolving and holds only an 8% share of the total Indian retail market.
The success stories of global retailers have been a source of inspiration to the Indian business houses for entering the retailing business. This resulted in the entry of business houses like Birla’s, Tata, Raheja’s, Reliance, etc. in the Indian retail sector. The Indian retail sector witnessed a constant entry of new players and expansion of the existing ones. Organised retailers in the early years witnessed a substantial growth in their retail businesses but with passage of time the market became more competitive and challenging.
As organised retail was flourishing in India unlike other states Jharkhand also witnessed the entry of Multibrand retail chains like Reliance, Vishal, Spencer, Big Bazaar but all of them could not sustain. Spencer exited Jharkhand soon followed by closure of Vishal twice in Dhanbad. This signalled that just opening of stores would not work. Retailers need to understand the changing preferences factors affecting consumers buying to be successful in the long run. This study is an attempt to identify the consumer preference factors in Multibrand retailing. Factor analysis has been used to identify the preference factors.
Keywords: Organised Retail, Globalisation, Preference Factors.
A Study of Preference Factors ofConsumers in Multi-BrandRetailing
Abstract
Introduction
Retailing has been there with our life since generations.
Indians cannot think of their life without retailing. Retail
outlets are available in every nook and corner of India. It
is the last part of the physical distribution process.
Retailing has evolved as one of the fastest growing
industry in last two decades. Organised retail has been
readily accepted by Indians. The supportive policy of the
government has acted as a catalyst in a decent growth of
organised retail in India. Yet the organised retail sector is
still evolving and holds only an 8% share of the total
Indian retail market. This signifies a promising future and
a big market for organised retailers.
The changing lifestyles of consumers have supported the
growth as well as acceptance of the organised retail. The
increasing number of MNC’s and the process of
globalization haveopened up the world market for many
industries which has increased their chances of growth.
Retail sector has been one of the major beneficiaries of
the globalization process. The IT revolution has further
fuelled the growth of the retail sector across the global
market.
The retail sector has acted as an important role across
the globe in enhancing productivity across a wide range
of consumer goods and services. It’s impact could be
witnessed in countries like USA, UK, Mexico, Thailand
and more recently India and China. The economies of
countries like Dubai, Malaysia, Singapore, Hong-Kong
and Sri Lanka also heavily rely on the retail sector. In US
the retail industry is second-largest in number of
employees and number of establishments.
Dr. A. R. Srivastava*
*Dr. Abhaya Ranjan Srivastava, Assistant Professor, Department of Management,Birla Institute of Technology, Lalpur, Ranchi
01
02
Prastuti: Vol. 5, No. 1, July 2016
S.
No.
Year
GRDI Rank
1
2012
05
2 2013 14
3 2014 20
4
2015
15
5
2016
02
The success stories of global retailers has been a source of
inspiration to the Indian business houses for entering the
retailing business. This resulted in the entry of business
houses like Birla’s, Tata, Raheja’s, Reliance, etc. in the
Indian retail sector. The global retail giants also entered
the Indian retail market eyeing the big market size and
increasing purchasing power of the Indians. The Indian
retail sector further witnessed a constant entry of new
players and expansion of the existing ones. Regular entry
of new retailers could be seen with new formats. The
present models which are successful highly in certain
parts of the country are only moderately successful in
other areas. Better services are used as one of the
important driver to bridge this gap(Krishnan & Venkatesh,
2008).
Organised retailers in the early years witnessed a
substantial growth in their retail businesses but with
passage of time the market became more competitive
and challenging.The Western part of the world is a
saturated market, most of the Middle-East is politically
disturbed, and the African market is not as attractive as
the Asian market. China & India has always been a
preferred destination because of their big population and
a decent growth. Presently India is one of the few
economies of the world which is constantly growing on a
decent pace when most other nations are slowing down
or saturating. The increasing purchasing power of the
Indian middle class has been one of the important
reasons for attracting Indian business houses as well as
globalretailers in the Indian retail market.
From the above table it can be seen that there was a major
slip down of India in the GRDI Ranking in 2013 and 2014
but after the formation of the NDA government in the
centre the ranking improved drastically. The
improvement in the year 2015 from Rank 20 to Rank 15
was due to the solid retail growth and a strong future
prospect predicted along with animproving GDP growth
rate for India. There have been significant regional
challenges but retailers are moving with the strategy of
having a long-term view on investments in developing
markets like India.
The reason for a long jump in GRDI ranking in 2016 from
Rank15 to Rank2 has been attributed to the improved
ease of doing business, GDP growth rate and
transparency regarding FDI regulations.The GRDI has
guided global retailers with their strategic investments
since 2002, a period in which the retail environment in
developing markets has undergone massive
transformation. GRDI uses around 25 macroeconomic
and retail-specific variables in ranking the top 30
developing countries for retail investment.
Retailers over the past year took a long-term perspective
of developing markets. Having a hold on investments in
turbulent regions but making targeted investments in
areas of growth. The retailers took a more cautious
approach to international market expansion in Middle
East and Latin America but at the same time few made
significant market exits. Russia was an exemption where
exits were due to the heightened political risk. This
prompted sizeable closures or complete exits from
players such as Addidas, Mexx, franchisee Maratex, etc.
Fortune of several organisations has changed through the
business of retailing. In the fast emerging Indian retail
market it became inevitable for the organisations to learn
how to retain and enhance their market. Entry of bigger
players is pushing the market to become more organised
and structured.In India organised retailers are presently
expanding their presence in tier 2 and tier 3 cities because
the cost of real estate has skyrocketed in the metro areas.
Metro, Bharti-Walmart and Carrefour have increased
their presence in these markets.
As organised retail was flourishing in India unlike other
states Jharkhand also witnessed the entry of Multibrand
retail chains like Reliance, Vishal, Spencer, Big Bazaar but
all of them could not sustain. Spencer exited Jharkhand
Table 1: Global Retail Development Index Rank of India in last five years (Source: www.atkearney.com/accessed on 17/06/2016)
A Study of Preference Factors of Consumers in Multi-Brand Retailing
03
soon followed by closure of Vishal twice in Dhanbad.
Spencer again came back last year in Dhanbad and Vishal
also reopened there but this signalledthat just opening of
stores would not work. Retailers need to understand the
changing preferences of consumers to be successful in the
long run. This requires having the understanding of the
consumer preferences in the changing economic
scenario.As the Indian retail market is still emerging
theagainst this backdrop this study attempts to achieve
the following objectives-
1) To identify the consumer preference factors of
organised retail.
2) To analyse the importance of the identified
preference factors of organised retail.
Literature Review
A number of studies have been conducted in the field of
retail. Researchers from all part of the world have
contributed through their studies on various areas
specific to retail. The developing markets are able to
absorb all types of organised retailers be it global giants
like Wal-Mart or small domestic players. The efforts of
retailers, potential investors and more importantly the
government has to make it happen (Misra & Khan, 2008).
Research studies could be found in the area of impact of
organised retail, private brands, category management,
success factors for organised retail, brand loyalty, service
quality, store location, innovation in retailing,
etc.(Aggarwal, 2008). The present consumption and
spending patterns in Indian retail market is driven by the
young population in India (Krishnan & Venkatesh, 2008).
Researchers earlier have found that the cost acquiring
new customersis far more than retaining the existing
ones. Marketing literature consistently advocates that
customer satisfaction is a key antecedent to loyalty and
repurchase behaviour(Seisders, 2005). Recent empirical
studies indicate that satisfied customers are less price
sensitive and may also be ready to pay a premium
price(Homburg, Hoyer, & Koschate, 2005).In a research
study authors found that the profits generated from the
existing customers is more per customer than the new
ones(Smith & Taylor, 2005).
The significance of relationship marketing has been
highlighted and increased. Relationship marketing has
emerged as an area gaining the attention of several
researchers to know how companies are being benefited
b y b u i l d i n g l o n g - t e r m r e l a t i o n s h i p s w i t h
customers(Parasuraman, Berry, & Zeithmal, 1991). Apart
from helping marketers in understanding customer need,
relationship marketing leads in cost reduction, increasing
m a r k e t s h a r e a n d t h u s p r o f i t a b i l i t y f o r
organisations(Shani & Sujana, 1992). The shopping
attitude of customers are affected by factors like ease of
parking, best prices, special offers, loyalty or benefit card,
and incentives (Nielson, 1996). Authors indicate the
importance of factors like convenience, enjoyment,
apathy, shopping as a routine activity and as an event to
govern the shopping attitudes of customers
(Chetthamrongchai & Davies, 2000).
Consumers buy brands and these brands generate
income. So developing a strong brand becomes very
necessary for organisations. Only few brands are
successful in any product category. It takes years in brand
building. Rich nourishment, timely support of marketing,
promotions and distribution result in a winning brand
(Ramaswamy & Namakumari, 2002). The marketing
programmes tries to create a distinct and powerful
positioning of the brand in the minds of consumers. The
whole activity requires intensive resources and is very
time consuming. Advertisements play a limited role in
influencing the purchase of branded products (Lalitha,
Kumar, & Padmavalli, 2008). A brand signifies the quality
of products, its price, social recognition, status and also
the mental peace in terms of confidence that the
consumers feel that they have bought the right product.
In order to highlight their store brands retailers give them
more shelf space at attractive places(Burt, 2000).Quality
acts as the core and tangible benefit which differentiates
the retailer’s product from other competing products(Kar
& Nanda, 2011). Customers who are quality conscious
prefer to buy branded products from shopping malls
(Kaushal & Sanjay, 2011).
Customers prefer value,quality and a frictionless
shopping experience in totality (Tillman, 2007).
Merchandise, proximity, ambience and service have been
identified as driving factors for pulling the customers
towards the stores(Chavadi & Kokatnur, 2008). In a study
conducted on customer’s perception towards Mega
Marts in Ludhiana the author analysed that customers
preferred a particular mega mart due to its convenience in
terms of space, billing system, product range, multiple
Prastuti: Vol. 5, No. 1, July 2016
04
choice, etc.(Sonia, 2008).By nurturing quality relationship
with customer’s retail outlets would be able to attract and
retain them ever loyal (Prasad & Aryasri, 2008).The
multiple effects of retail on the Indian economy are -
employment generation, development of small scale
units, real estate growth,development of retail ancillary
market, etc. (Aggarwal, 2008). Presently the retail sector
in India is the second largest employer after agriculture.
Price still remains as one of the most important
parameter in determining the profitability of the
business(Ramaswamy & S, Marketing Management,
2007).Prices and product displays are the main in-store
stimuli for the big size retail stores for impulse purchases
(Gupta, Heng, & Sahu, 2009).Majority of the customers
feel that product pricing is better in the organised retail
outlets (Dalwadi, Rathod, & Patel, 2010). Retailers need to
go for such pricing that it becomes very inviting for the
customers to pay close attention. Special pricing do have a
high impact on the customers purchase decision process.
(Patil & Vedak, 2011). Irrespective of how strong is the
brand relationship customers do go for price comparisons
(Sahay & Sharma, 2010).
The ambience created by the modern retailers in their
stores, the fast processing, better quality and hygiene,
discounts all of them are welcomed and appreciated by
the modern housewives (Krishnan & Venkatesh, 2008).
Researchers advocate that marketing strategies resulting
in the improvement in store image finally leads more sales
for the retailers. Store atmosphere, merchandise variety,
service, layout and merchandise quality were identified
as driving factors in the purchase of store brands from
organised retail (Venkateswaran & Mahalakshmi, 2010).
In a study on purchase of apparels from organised retail
outlets the authors identified seven important factors
reflecting various attributes. The identified factors were
named as appeal, price, variety, brand name, quality, style
and referral group (Lahiri & Samanta, 2010).
More than 60 percent of the customers perceive that
shopping convenience to be good in the organised retail
outlets (Dalwadi, Rathod, & Patel, 2010). The
convenience of one-stop shopping with wide product
portfolio is very much appreciated by the customers
especially the modern housewives (Krishnan &
Venkatesh, 2008). In a study of innovative marketing
practices the author has highlighted the increasing role of
mobile sms (short messaging service) and internet in
communicating effectively with customers(Agrawal,
2010).Product variety and convenient timings appear to
be the primary impression about the store, consumers
carry with them(Banerjee & Dasgupta, 2010).
In their study on Relationship marketing for Indian
shoppers the authors identified fourteen important
factors namely service augmentation, service
differentiation, alert staff, basics, error avoidance,
freebies, convenience, sensory appeal, proximity to
markets, delightment, superior layout, price, core
benefits, visual appeal out (Kar & Nanda, 2011). The
authors identified three prominent factors segregated as
quality conscious, time saving conscious and price
conscious in the study conducted in Lucknow on shopping
mall behaviour (Kaushal & Sanjay, 2011). A desire for a
frictionless shopping experience signifies fast shopping,
getting the right products easily, and shopping
convenience. (Malik, 2012).
Need of the Study
A number of studies have been conducted in India and
abroad. Researchers have carried out studies in several
cities and regions of India but we lack researches
conducted in the state of Jharkhand which leave view of
consumers still unturned in this part of India. The
importance of such studies could be of help to Multibrand
organised retailers in India apart from those in
Jharkhand.This study would be of help to the retailers in
drawing insights about the factors considered most
important by retail buyers. It would be of good help to the
organised retailers in framing their strategies with the
changing retail market around these factors.
Research Methodology
This study is based on the primary data collected through
questionnaires. The survey has been conducted in the city
of Jamshedpur during July - December, 2012. A total of
125 questionnaires were distributed to retail customers
out of which 87 filled questionnaires were received.
Before finalising the questionnaire a pilot study was
conducted to legitimise it. The opinion of experts was also
taken before arriving at the final questionnaire. In this
research we focus upon the factors which influence the
purchase from Organised Multibrand retail outlets. A
A Study of Preference Factors of Consumers in Multi-Brand Retailing
05
total of 32 statements were finally taken which reflect the
various attributes influencing purchase from Organised
Multibrand retail outlets. The respondents were asked to
rate the statements on a five point likert scale. SPSS 17
was used to identify the relative impact levels and the
KMO and Bartlett’s test of Sphericity.The data reduction
technique of Factor Analysis was used to identify the
factors influencing the purchase from organised retail.
Discussion on Research Findings
Cronbach’s Alpha: A value of 0.839 for Croanbach Alpha
indicates the reliability and validity of the construct. The
invalid data was found to be 0.7% only.
KMO Measure of Sampling Adequacy: As the KMO test
value is 0.758 which is more than 0.5 it indicates that we
can go for factor analysis.
Bartlett’s Test of Sphericity: Since the Chi-Square value is
higher, i.e.- 2486.467 and significance level is 0.000 which
means we can definitely go for factor analysis.
Table 6 shows the 32 variable preferences for purchasing
from Organised Multibrand retail outlets grouped under
ten extracted factors. The first and second factor consists
of five variables, the third, fourth, fifth, sixthfactor
consists of 3 variables,theseventh, eighth and ninth
factors consist of 2 and the tenth factors consist of a single
variable. Three Variables were not considered in the
factor clubbing because they could not reach the factor
loading criteria of 0.5. These three factors were ‘Free
packaging’, ‘I was attracted by advertisements and sales
promotions’ and ‘Membership cards offer additional
benefits’.The extracted ten factors have been clubbed and
named as shown in Table 5. The extracted factors support
the work of researchers done earlier. Let us have a brief
look on the extracted factors as named.
Basics: Customers have rated it as the most important
factor for purchasing from Multibrand retail outlets. Basic
facilities like trolleys for a hassle free purchase, spacious
trial rooms which are adding comfort in shopping,
washroom facility which add convenience, neat and clean
staff with a positive mood to support the customers are
provided by the organised retailers. Most of these
facilities lack with the unorganised retailers. Upsurging
Consumerism, changing lifestyle, increasing access to
information and ever improving technology, made the
last decade observe an enormous development in the
retail sector around the globe (Lahiri&Samanta, 2010).
The Changing lifestyles, food and eating habits of
consumers have contributed largely to the growth and
development of organised food and grocery retail formats
in India (Prasad & Aryasri, 2008). The taste and
preferences are fast changing. The retail sector in India is
witnessing a tremendous growth with the changing
demographics and lifestyles. An improvement could be
seen in the quality of life of urban Indian consumers
(Krishnan & Venkatesh, 2008). With the boom in Indian
economy and the rise in the income Indian customers are
demanding for the best facilities. Authors are of the view
that ‘Basics’ should be delivered for a better selling
experience and the same has been supported by the
present study also.
Brand: In this information age brand management is the
key to the success of organisations in the markets. The
battle in the marketplace is between brands and not
between organisations. Consumers buy brands and these
brands generate income. So, developing a strong brand
becomes very necessary for organisations (Ramaswamy
& Namakumari, 2007). This can be done by identifying
your competitive advantage and regularly advertising the
same (Banerjee & Banerjee, 2000). In this transition
phase of retailing it has gained a greater importance
because a number of new brands are entering the Indian
retail market. In the era globalisation and liberalisation
the choice of Indian customers is shifting from traditional
tailor-made to readymade dresses although they are
costlierThe reason for this shift is due to the wide variety
and tempting designs. The market is delivering products
with almost similar features like name (with a single word
difference in spelling), colour, packaging, etc. brand
management plays a more important role for the survival
and success of products and organisations(Lalitha, Kumar,
& Padmavalli, 2008). The present research output also
support the work of research studies done earlier.
Variety: Variety has emerged as an important factor in our
results.Product range and multiple choices act as
important determinants for preference of Mega Marts
(Sonia, 2008).This has increased their customer base
which needs to be addressed with the right mix of
merchandise (Krishnan & Venkatesh, 2008).Retailers
Prastuti: Vol. 5, No. 1, July 2016
06
must have the right assortment of products which should
be sold in consistency with the overall strategy.(Das,
2011). Organised retailers should offer a better product
mix and assortment strategy to target the consumers
according to their income group (Ramanathan & Hari,
2011).Variety has been regularly advocated by authors as
an important driver for attracting customers to stores.
Our research results also support the same for the
organised retailers.
Service: A good service has its own benefits for any
business be it a retail business or any other. Literature
suggests that customer-contact employee interaction
affects the overall service quality(Mittal & Lassar, 1996),
customer satisfaction (Spies, Heese, & Loesch, 1997),
customer loyalty(Beatty, M, Colema, Reynolds, & Lee,
1996), and customer purchase intentions(Macintosh &
Lockshin, 1997).Good service and good selling help in
retaining, enhancing and cementing relationship
resulting in relationship management which finally leads
to competitive advantage for the firm (Kar & Nanda,
2011). Good Customer Service attracts more customers
and increases consumer satisfaction (C & Hariharan,
2008). Efforts to stay in touch with customers are
identified as key determinants of relationship
enhancement in retailer-customer relationship (Bajaj,
Tuli, & Srivastava, 2005). Earlier studies have revealed
that service is an important differentiator in the success of
business and the same have been justified through the
result of factor analysis.
Shopping Experience: A good shopping experience has
helped in increasing traffic towards the organised retail
outlets. Authors viewed that shopper’s attach
importance to ambience and facilities at the store (Sinha,
Banerjee, & Uniyal, 2002).Mall atmosphere and decor
highly appeal the customers (C & Hariharan, 2008). Store
ambience does have an effect on sales (Gupta, Heng, &
Sahu, 2009). The modern retail formats have attracted
more customers because they are mostly providing
various facilities in their stores. Hassle-free parking
attracts more customers. (C & Hariharan, 2008). The mall
managers should highlight facilities of anchor stores and
entertainment along with parking facility, easy
accessibility, pleasant ambience, spacious floors and food
courts, elevators, etc. to create an attractive image so that
customer traffic could be enhanced and result in more
sales for retailers (Khare & Prakash, 2010). Giant malls
offer a unique experience to the customers during
shopping regardless of their status, where people with
less purchasing power also throng the stores.Malls are
built-up with this idea as their USP to deliver a complete
experience (Banerjee & Dasgupta, 2010). Organised
retailer should implement various value-added services
to provide pleasant shopping experiences to consumers
(Ramanathan & Hari, 2011).As could be seen that
shopping experience is mentioned by authors as an
important driver for increasing customer traffic and sales
the result of the present study also justifies it.
Price: Since sales volume is dependent on price to an
extent, the latter becomes the key to the revenue for an
organisation. Price is also the most important parameter
in determining the profitability of the business
(Ramaswamy & S, 2007). Retailers have to adjust with the
razor thin margins because the Indian customers are
highly price sensitive (Vijayraghavan & Ramsurya, 2007).
Retailers also need to sharpen their pricing skills in order
to survive in this competitive environment (Banerjee &
Banerjee, 2000). Products should be priced in such a way
that it achieves profitability for the retailer and
satisfaction for the customers. Pricing should be such that
it supports the positioning of the organisation and
generates the expected return on investment (Berman &
Evans, 2007). Prices and product displays are the main in-
store stimuli for the big size retail stores for impulse
purchases (Gupta, Heng, & Sahu, 2009). Irrespective of
how strong the brand relationship is customers do go for
price comparisons (Sahay & Sharma, 2010). It could be
observed from the above studies that price is one of the
crucial determinants of sales and the same has also been
reflected in the present study results.
Convenience: Location convenience is always been
preferred by customers (Kar & Nanda, 2011). Authors are
of the view that factors like apathy, convenience,
enjoyment, shopping as a routine activity and as an event
govern the shopping attitudes of customers
(Chetthamrongchai & Davies, 2000). Convenient location
of shops plays an important role in attracting customers
and thus increases sales (Lalitha, Kumar, & Padmavalli,
2008). The location of the retail outlets plays an important
role in attracting customers and adding convenience (C &
Hariharan, 2008). In a study on shopping orientations in
the evolving Indian market the author observed that the
shopper’s preference for a store which is near and could
be approached easily and frequently poses a big
challenge in the present retail scenario (Sinha, Banerjee,
& Uniyal, 2002). Convenience has been expressed by
authors earlier as an important factor in attracting
customers and increasing sales and the present study also
justifies it through the extracted factors.
Superior Sales Staff: The factor has been named as
Superior Sales Staff because it is a clubbing of variables
‘courteous staff to customers’ and ‘personal attention to
customers’. Employees have been considered as the best
resource for any type of organisations and the factor
analysis is also highlighting it. Managers and marketers of
retail store services in particular and service organisations
in general should recognise the essence sales force
management practices to serve the employees as well as
customers satisfactorily in their efforts to deliver superior
value to customers and manage customer relationship
more effectively (Prasad & Aryasri, 2008). Efforts to stay in
touch with customers are identified as key determinants
of relationship enhancement in retailer-customer
relationship (Bajaj, Tuli, & Srivastava, 2005). The authors
indicate that alert staff helps in building this relationship
by being courteous and giving personal attention to the
customers.
Superior Store Amenities: The factor has been given the name Superior store amenities because it is representing a clubbing of the factors ‘safe trial rooms’, ‘shopper friendly store design’ and ‘child care facility’. These variables have been considered by earlier researchers also. The authors observed that shopper does attach importance to ambience and facilities at the store (Sinha, Banerjee, & Uniyal, 2002). The objectives of the retailers are to attract more number of customers through different extra benefits and store amenities are one of them which may lead to attract customers (Das & Kumar, 2009). Authors have also highlighted the role of safe trial rooms in gaining the confidence of customers for the stores (Kar & Nanda, 2011). The present study also views superior store amenities as an important factor in shifting the preference of customers towards the organised retail and thus goes in accordance with the view of earlier researchers.
One Stop Shopping: The wide assortment of products arranged neatly in a sequence impresses the customers. The authors were of the view that the retailers delivering the fun experience should offer wide assortment and an ambience in which the shopper’s would like to spend more time (Sinha, Banerjee, & Uniyal, 2002). The more
time the shopper spends in the store, the more is the chance of purchasing by them. The organised retailers has not only taken care for this rather they have also tried that the customers do their purchasing in less time with ease and comfort (Das, 2011). The Indian customers are very busy in their office & house hold activities due to which they are in lack of time particularly in big cities. The facility of One Stop shopping has come as relief and convenience for them. It has led to the preference of modern formats of retail and malls in India. The present research study also supports the importance of One Stop shopping in the preference of organised retail.
Recommendations
Based on the results of the present research the following suggestions could be made:
• Instead of having a uniform strategy throughout the stores in India organised retailers should try to customise their products to the local needs which are unique. This could be achieved by havinga deeper insight about consumer preferences.
• Organised retailers should go for a sustainable long-term perspective in India.
• Out of the extracted ten factors the factor BASICS has emerged as the most important factor which needs to be properly focussed by organised retailers.
Limitations
As all studies have suffers limitations the present study also has certain limitations. This analysis is based on the survey conducted in the city of Jamshedpur only. A larger sample and broader market coverage would help in generalising the results for the whole of India.
Future Scope of Study
• It would act as an important reference for researchers who would like to conduct similar type of study in other states of India.
• Future studies could be conducted on a more comprehensive basis by taking a larger sample and covering other parts of India.
A Study of Preference Factors of Consumers in Multi-Brand Retailing
07
Prastuti: Vol. 5, No. 1, July 2016
08
Appendix
N %
Cases Valid Excluded Total
87 0 87
100.0 0.0 100.0
Table 2: Case Processing Summary
Table 3: Reliability Statistics
Cronbach’s Alpha N of Items
0.839 32
Table 4: KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Bartlett’s Test of Sphericity Approx. Chi -Square DfSig.
.7582486.467
86
0.000
Table 5: Total Variance Explained
Component
Rotation Sums of Squared Loadings
Total % of Variance Cumulative % 1
4.145
12.953
12.953
2
3.385
10.578
23.531
3
3.044
9.513
33.043
4
2.496
7.801
40.844
5
2.326
7.269
48.113
6
2.203
6.885
54.999
7
2.075
6.483
61.481
8
2.041
6.380
67.861
9
1.934
6.043
73.904
10 1.521 4.753 78.657
Extraction Method: Principal Component Analysis.
S. No. Factor Statement Factor Loading (>0.5)
Variance Naming of Factor
1 Personal Attention to customers
0.831
12.953
BASICS
Washroom facility
0.625
Good condition of trolleys
0.558
Neat Appearance of staff
0.808
Spacious trial rooms
0.850
2 Too many are coming here so I also came
-0.794
10.578
BRAND IMAGE
Outlets name carry added weightage
0.566
Buying here increases social recognition
0.733
Quality of goods provided are trustworthy from a renowned outlet
0.505
They inform in advance about new schemes through sms&/or email
0.678
3 Pleasant shopping because of good ambience 0.679 9.513 SHOPPING EXPERIENCEPleasant shopping because of good parking facility
0.846
Different payment options are available
0.542 4 Convenient timings of the stores
0.606
7.801
CONVENIENCE
It accommodates all class of buyers
0.676
The stores are conveniently located
0.749
5 Child care facility
0.768
7.269
SUPERIOR STORE AMENITIESShopper friendly store design
0.890
The trial rooms are safe
-0.543
6 Exchange facility
0.601
6.885
SERVICE
Customer Relationship Management practices are good
0.779
Free Alteration
0.757
7 Buying goods is cheaper here
-0.687
6.483
PRICE
I save money in bulk purchases
0.839
8 Better Assortment of Products
0.723
6.380
VARIETY
More options are available in products
0.710
9 Courteous Staff to Customers 0.558 6.043 SUPERIOR SALES STAFFPersonal Attention to Customers -0.826
10 Complete shopping under one roof 0.861 4.753 ONE STOP SHOPPING
A Study of Preference Factors of Consumers in Multi-Brand Retailing
09
Figure 1: Scree PlotTable 6: Grouped Variables for each of the Extracted Ten Factors
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A Study of Preference Factors of Consumers in Multi-Brand Retailing
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A Study of Preference Factors of Consumers in Multi-Brand Retailing
13
This paper emphasizes on the disclosure practices of selected Indian and U.S banks. Four banks have been selected from each country on the basis of net worth and market capitalization as on 1st April 2010 and five years study period have been considered i.e. 2010- 2015. It has been observed from the analysis that among the selected Indian banks, Bank of Baroda disclosed information in its annual report while in case of U.S. The Bank of New York and Mellon disclosed maximum number of information in its annual report.
Keywords: ICAI, SEBI, RBI, NPA, SEC, Listing Agreement Clause 49
A Comparative Studyof Disclosures Practices ofSelected Indian and U.S. Banks
Abstract
Introduction
In recent years, the scope of disclosure practices have
been widely increases day by day and now this practices
is adopted by various banking companies for their
accountability and transparency of their sound banking
system because there are large number of financial
scandals cases are happened, In order to prevent from
these scandals there are various bodies in different
countries provide various norms of Financial Reporting
and Disclosure practices of banking companies in India
are regulated by Companies Act 1956, New Companies
Act 2013, the Banking Regulation Act 1949, the rules of
SEBI and the guidelines of RBI as well as the
recommendation of ICAI (Institute of Chartered
Accountant in India). In U.S SEC (The Securities and
Exchange Commission), AICPA The American Institute of
Certified Public Accountants and others. These
regulatory bodies are working there. It is observed that
pattern of disclosure practices are entirely different in
different countries. This study also investigated that
quality as well as quantity of disclosures practices of
different banking companies and to see that what
extend they disclosed information considering the
existing Banking Act, rules and recommendation &
guidelines of various professional or regulatory bodies.
In addition to this researcher also conduct a comparative
study among these selected companies of different
countries.
Review of Literature:
This is an essential aspect of an investigation is a review
of the related literature which is general prospective
survey of previous researches pertaining to one’s
problem. It is obviously imprudent and wasteful to
proceed in any study without knowing what has been
done before. The literature in any field forms foundation
upon which all future is built. The following studies have
been reviewed for this purpose (Christian Wagner
(2006), Mohammed Hossain (2008), M.L. Dutt (2012),
Mehedi Hasan Tuhin (2013)).
Ø Christian Wagner (2006), “Determinants of
Operational Risk Reporting in the Banking
Meenakshi Chawla* Prof. Pramod Kumar**
*Research Scholar, Department of Accountancy & Law, Faculty of Commerce,DayalBagh Educational Institute (Deemed University) Dayalbagh Agra**Head, Accountancy and Law & Dean Faculty of CommerceDayalBagh Educational Institute (Deemed University), DayalBagh Agra.
14
Industry” Motivated by the recognition of
operational risk management as being crucial
for banks and the importance of adequate
reporting for enhancing market discipline, the
present paper investigates operational risk
disclosure practices in the 1998 to 2001 period.
Whereas reporting was not mandatory at that
time, disclosure increased in both extent and
content.
Ø Mohammed Hossain (2008), “The Extent of
Disclosure in Annual Reports of Banking
Companies: The Case of India” This study is an
empirical investigation of the extent of both
mandatory and voluntary disclosure by listed
banking companies in India. It also reports the
results of the association between company-
specific attributes and total disclosure, i.e.,
mandatory and voluntary, of the sample
companies.
Ø M.L. Dutt (2012), “The Extent of Disclosure
Code of Corporate Governance in India: A
Comparative Study of Public and Private Sector
Banks” Banking sector is critical for any
economy in the world and Indian banking
sector contribution is significant in the growth
of Indian economy, but time and again the
frauds reported in the banking sector raises a
question on our corporate governance
practices followed by the banks
Ø Mehedi Hasan Tuhin (2013), “Disclosure of Non
Financial Information Voluntarily in the Annual
Report of Financial Institutions: A Study of
Listed Banks of Bangladesh” The aim of this
paper is to measure the extent of disclosure of
voluntary nonfinancial information in the
annual reports of listed banks in Bangladesh. An
effort has also been made to identify the
company specific factors responsible for
disclosing voluntary nonfinancial information
in addition to mandatory information.
Objectives
1. To test the Impact of market micro structure
variables on the disclosure practices of Indian
and U.K. Banks.
2. To make a comparison of disclosure practices of
Indian and U.K. Banks.
Methodology
(I) Selection of Sample
This Study specifically focuses on the banking sector of
India and U.K on the basis of Net worth as on 1st April
2010 exceeding worth Rupees 2000 crores and On the
basis of Market Capitalization as on 1st April 2010
exceeding worth Rupees 2500 Crores
(II) Scoring Of Disclosure Index
Generally weighted and unweighted disclosure Index is
used to measure disclosure level in these studies. The
weighted approach provides weights through tick that
means items of disclosed information and in unweighted
approach means blank column i.e. items are not
disclosed, this weighted and unweighted index prepare
according to importance given by researcher.
(III) Disclosure Index among various countries.
Analysis: - From the above table it has been observed that
total disclosures i.e. 206 have been divided into 19
headings, these data (Quantitative and Qualitative) have
been collected from the annual reports of the sample
Indian banks. The financial reporting and disclosure of
banking companies in India are regulated by Banking
Regulation Act 1949, Companies Act 1956, RBI
Guidelines, and Clause 49 Listing agreement, as well as
the recommendations of the Institute of Chartered
Accountant in India (ICAI).
Analysis: - From the above table it has been observed that
total disclosures i.e. 95 have been divided into 5 headings,
these data (Quantitative and Qualitative) have been
collected from the annual reports of the sample U.S
banks. The financial reporting and disclosure of banking
companies in U.S are regulated by SEC (The Securities and
Exchange Commission), AICPA The American Institute of
Certified Public Accountants.
(IV) HYPOTHESES
Ho1: There is no relationship between market micro
structure variables on the disclosure practices of Indian
and U.S. Banks.
15
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
Ho2: There is no difference between Disclosure practices
of Indian and U.S. Banks.
(V) Extent of Disclosure Practices of Selected Indian and
U.S Banks
Analysis: - It is clear from Table 1 that there are 206
disclosure items that must contain in every annual report
but among the selected Indian banks, Bank of Baroda
disclosed 66% information in its annual report. While in
case of State Bank of India and Punjab National Bank
disclosure percentage is 60.7%.
Ø U.S Disclosures
Analysis: - It is clear from Table 2 that there are 95
disclosures items that must contain in every annual report
but among the selected U.S banks, The Bank of New York
and Mellon disclosed 90.29 % information in their annual
report. Where in case of Wells Fargo & Company disclosed
is 79.82%
(VI) Comparison of Disclosure Index between India and
U.S
(VII) Model Development
To Test the gauge of relationship between micro structure
variables and Disclosure Practices of Indian and Foreign
Banks a simple OLS (Ordinary Least Square) model was
applied. The functional relationship between variable and
proxies can be expressed as-
DP =f (micro structure variables)
The model employed in the study includes the following
DP = β0+ β1Net Profit+β2SP+ β3NPA+ β4ROE...+µ
OLS Model for Indian Banks
1. SBI Bank
2. PNB
3. AXIS Bank
4. BOB
Analysis: - the result of above tables it exert that there is a
positive and significant impact of micro structure
variables (except Net profit) on disclosure practices in SBI
and Axis bank but opposite relationship in PNB i.e.
negative & significant impact of micro structure variables
(except net profit) on disclosure practices. In case of Bank
of Baroda two variables i.e. Net profit & ROE has negative
and significant impact on disclosure practices and vice
versa with NPA & ROE.
OLS Model of U.S. Banks
1. American Express
2. Bank of New York and Mellon
3. Goldman’s Sachs Group
4. Wells Fargo and Company
Analysis: - The result of above tables it exert that there is a
positive and significant impact of micro structure
variables on Net Profit and NPA except Net Profit of
Goldman’s Sachs Group on disclosure practices but
opposite relationship i.e. negative and significant
relationship with staff productivity (except Bank of New
York and Mellon) and ROE except (Goldman’s Sachs Group
and Wells Fargo and Company.
(VIII) Descriptive Statistics
Indian Banks
1. SBI Bank
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 10826.80, Staff Productivity is 4.984000, NPA
39466.20, ROE with 13.53400 and Disclosures Practices is
202.40 followed by the maximum Net Profit is 14105.00,
Staff Productivity is 6.450000, NPA 61605.00, ROE with
15.94 and Disclosures Practices is 206 and minimum
prices of Net Profit is 8265.000, Staff Productivity is
3.850000, NPA 19535.00, ROE with 10.49 and Disclosures
Practices is 200. S.D is very high in case of net profit, Staff
productivity and NPA comparative to others which
explain that there is high volatility in its values. From the
skewness measure we found that all the variables except
ROE are negatively skewed. In case of kurtosis, all
variables are positively skewed thus illustrating that all
have peaked distribution comparative with normal
distribution and Jarque-Bera is showing that all the
variables are normally distributed.
16
Prastuti: Vol. 5, No. 1, July 2016
2. PNB Bank
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 4262.600, Staff Productivity is 10.81200 , NPA
9984.913, ROE 18.02400 with and Disclosures Practices is
202.40 followed by the maximum Net Profit is 4884.000 ,
Staff Productivity is 12.83000, NPA 18880.06 , ROE with
24.59000 and Disclosures Practices is 206 and minimum
prices of Net Profit is 3343.000, Staff Productivity is
8.080000 , NPA 3214.410 , ROE with 9.690000 and
Disclosures Practices is 200. S.D is high in case of net
profit, Staff productivity and NPA comparative to others
which explain that there is high volatility in its values.
From the skewness measure we found that all the
variables are positively skewed except Staff Productivity
and ROE. In case of kurtosis, all variables are positively
skewed thus illustrating that all have peaked distribution
comparative with normal distribution and Jarque-Bera is
showing that all the variables are normally distributed.
3. AXIS Bank
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 4308.466, Staff Productivity is 14.06400 ,
NPA 2052.710, ROE with 19.99600 and Disclosures
Practices is 202.40 followed by the maximum Net Profit is
6217.670, Staff Productivity is 15.42000 , NPA 3146.410 ,
ROE with 21.22000 and Disclosures Practices is 206 and
minimum prices of Net Profit is 2514.530, Staff
Productivity is 11.63000, NPA 1318.000 , ROE with
18.23000 and Disclosures Practices is 200. S.D is very
high in case of net profit, Staff productivity and NPA
comparative to others which explain that there is high
volatility in its values. From the skewness measure we
found that all the variables are positively skewed except
Staff Productivity and ROE. In case of kurtosis, all variables
are positively skewed thus illustrating that all have peaked
distribution comparative with normal distribution and
Jarque-Bera is showing that all the variables are normally
distributed.
4. BOB
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 4265.754 , Staff Productivity is 10.12200, NPA
5450.918, ROE with 18.06000 and Disclosures Practices is
202.40 followed by the maximum Net Profit is 5006.960 ,
Staff Productivity is 11.87000, NPA 11875.90 , ROE with
22.19000 and Disclosures Practices is 206 and minimum
prices of Net Profit is 3058.330 , Staff Productivity is
7.890000, NPA 1842.920 , ROE with 13.00000 and
Disclosures Practices is 200. S.D is very in case of net
profit, Staff productivity and NPA comparative to others
which explain that there is high volatility in its values.
From the skewness measure we found that all the
variables are positively skewed except Staff Productivity
and ROE. In case of kurtosis, all variables are positively
skewed thus illustrating that all have peaked distribution
comparative with normal distribution and Jarque-Bera is
showing that all the variables are normally distributed.
U.S. Banks
1. American Express Bank
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 4192.60, Staff Productivity is 34000.20, NPA
822.400, ROE with 24.14 and Disclosures Practices is 97.0
followed by the maximum Net Profit is 5359.00, Staff
Productivity is 41273.00, NPA 1201.00, ROE with 27.80
and Disclosures Practices is 99 and minimum prices of Net
Profit is 2130.00, Staff Productivity is 22238.00, NPA
428.000, ROE with 14.600 and Disclosures Practices is 95.
S.D is very high in case of net profit and Staff productivity
as comparative to others which explain that there is high
volatility in its values. From the skewness measure we
found that all the variables are negatively skewed. In case
of kurtosis, leptokurtic in nature means selected variables
has a high probability for negative and extreme value and
Jarque-Bera is showing that all the variables are normally
distributed.
17
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
2. Bank of New York and Mellon
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 1823.600, Staff Productivity is 5484.200, NPA
339.0, ROE with 16.580 and Disclosures Practices is 92.6
followed by the maximum Net Profit is 2647.00, Staff
Productivity is 6019.00, NPA 550.00, ROE with 25.600 and
Disclosures Practices is 95 and minimum prices of Net
Profit is -813.000, Staff Productivity is 4700.0, NPA
156.00, ROE with 0.00 and Disclosures Practices is 90.
3. Goldman’s Sachs Group
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 8308.80, Staff Productivity is 33360.00, NPA
27977.20, ROE with 68443.60 and Disclosures Practices is
92.6 followed by the maximum Net Profit is 13395.00,
Staff Productivity is 35700.00, NPA 41958.00, ROE with
71267.00 and Disclosures Practices is 95 and minimum
prices of Net Profit is 4212.00, Staff Productivity is
32400.00, NPA 18715.00, ROE with 63757.00 and
Disclosures Practices is 90. S.D is very high in case of net
profit and NPA as comparative to others which explain
that there is high volatility in its values. From the
skewness measure we found that all the variables are
positively skewed except ROE and Disclosure Practices. In
case of kurtosis, leptokurtic in nature means selected
variables has a high probability for negative and extreme
value and Jarque-Bera is showing that all the variables are
normally distributed.
4. Wells Fargo and Company
Analysis:
From the table above in which descriptive values of all the
variables have been calculated shows that the average
Net Profit is 16256.20, Staff Productivity is 4666.40, NPA
25981.40, ROE with 58.460 and Disclosures Practices is
92.6 followed by the maximum Net Profit is 21878.00,
Staff Productivity is 5033.00, NPA 32251.00, ROE with
61.00 and Disclosures Practices is 95 and minimum prices
of Net Profit is 12275.00, Staff Productivity is 4348.00,
NPA 19605.00, ROE with 55.30 and Disclosures Practices
is 90. S.D is very high in case of net profit and NPA as
comparative to others which explain that there is high
volatility in its values. From the skewness measure we
found that all the variables are positively skewed except
NPA, ROE and Disclosure Practices. In case of kurtosis,
leptokurtic in nature means selected variables has a high
probability for negative and extreme value and Jarque-
Bera is showing that all the variables are normally
distributed.
Conclusion
Disclosure practices in banks become very important to
decision makers in the era of today’s knowledge-based
economy. As a result, each banks takes attempt to
disclose its information to insiders and outsider decision
makers. In fact, it is becoming an integral part of annual
report. The current study shows disclosure practices of
selected Indian and U.S banks and considered some micro
structure variables i.e. Net profit, Staff Productivity, Non
Performing Assets and ROE in assessing their effect on the
disclosure practices and reaches the conclusion that
these micro structure variables are significant affect on
disclosure practices.
References:
• Tuhin, Mehedi Hasan (2014), “Does Size Affect the
Non-Mandatory Disclosure Level In The Annual
Reports Of Listed Banks In Bangladesh?”
• Mehedi Hasan Tuhin (2013), “Disclosure of Non
Financial Information Voluntarily in the Annual
Report of Financial Institutions: A Study of Listed
Banks of Bangladesh”
• M.L. Dutt (2012), “The Extent of Disclosure Code of
Corporate Governance in India: A Comparative
Study of Public and Private Sector Banks”
• Mohammed Hossain (2008), “The Extent of
Disclosure in Annual Reports of Banking Companies:
The Case of India”
• Christian Wagner (2006), “Determinants of
Operational Risk Reporting in the Banking Industry”
18
Prastuti: Vol. 5, No. 1, July 2016
• Prof Pankaj Madani (2006), “Corporate Governance
and disclosure practices of firms and nature of
Industry: An Empirical Study from Indian
Perspective.”
• Amitabh Joshi (2006), “Disclosure Practices in
Corporate Reporting of Public sector financial
Institutions (Psfs)
• Steven Globerman (2005), “Harmonization of
Voluntary Disclosure Practices by Japanese
Companies
• Giacomo Boesso (2003), “How to Assess the Quality
of Voluntary Disclosures”
• Agarwal, R . N. (2003). “Capital Market
Development, Corporate Financing Pattern and
Economic Growth in India. Institute of Economic
Growth, Delhi, India, Discussion Paper,
• Coombs, H. M., and Tayib, M. (2000)." A
Comparative Study of Local Authority Financial
Reports between the UK and Malaysia".
• Nier, E., and Baumann, U. (2000). “Market Discipline
and Financial Stability: Some Empirical Evidence.”
19
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
Table 1: Categories of Disclosure Index
(In case of India)
S.No.
INDIA
No. of items
1.
Balance sheet items
15
2.
Profit and Loss Account Items
07
3.
Board’s Report
06
4.
Business Responsibility
Report
05
5.
Management Discussion and Analysis
12
6. RBI Guidelines 29
7. Background about the bank/general corporate information 06
8. Corporate Strategy 03
9. Financial Performance 13
10. General Risk Management 07 11. Credit Risk Exposure 07 12. Market Risk Exposure 04 13.
Interest Rate Risk
02
14.
Currency Risk
03
15.
Liquidity Risk Exposure
03
16.
Accounting Policy Review
02 17.
Key Non-financial Statistics
08
18.
Corporate Social Disclosure
04
19.
Others
07
Source: Author
(III) Disclosure Index among various countries.
20
Prastuti: Vol. 5, No. 1, July 2016
Table 2: Categories of Disclosure Index
(In case of U.S)
S.No U.S No. of items
1. Financial Summary 38
2. Management’s Discussion and Analysis 19
3. Controls and Procedures 04
4. Financial Statement 07
5.
Notes to Consolidated Financial Statements
26
Source: Author
(V) Extent of Disclosure Practices of Selected Indian and U.S Banks
21
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
U.S Disclosures
S. No. BASIS INDIA U.S
1. Number of Disclosures 206 95
2. Number of Sub Heads 19 5
3. Detailed of Disclosing Information More Detailed Less Detailed
4. Working Bodies in Countries 6 5
(VI) Comparison of Disclosure Index between India and U.S
Variable
Coefficient
Std. Error
P-Value
c
12.8773
0
0.0000
Net Profit
-1.19032
0
0.0000
SP
1.049234
0
0.0000
NPA 0.14997 0 0.0000
ROE
0.087107
0
0.0000
Multiple R
Adjusted R-squared
1
65535
R-
squared
Standard Error
1
0
OLS Model for Indian Banks1. SBI Bank
22
Prastuti: Vol. 5, No. 1, July 2016
Variable
Coefficient
Std. Error
P-Value
C
4.972642
0
0.0000
Net Profit
0.775438
0
0.0000
SP -0.48201 0 0.0000
NPA -0.26813 0 0.0000
ROE -0.91023 0 0.0000
Multiple R
Adjusted R-squared
1 65535
R-
squared
Standard Error
1
0
2. PNB
Variable
Coefficient
Std. Error
P-Value
c
3.649901
0
0.0000
Net Profit
-0.28587
0
0.0000
SP 0.057415 0 0.0000
NPA 0.353249 0 0.0000 ROE 0.404046 0 0.0000
Multiple R
Adjusted R-squared
1 65535
R-
squared
Standard Error
1
0
3. AXIS Bank
Variable
Coefficient
Std. Error
P-Value
c
6.627975
0
0.0000
Net Profit
-0.22985
0
0.0000
SP 0.22871 0 0.0000
NPA 0.024227 0 0.0000
ROE -0.04502 0 0.0000
Multiple R
Adjusted R-squared
1 65535
R-
squared
Standard Error
1
0
4. BOB
Variable
Coefficient
Std. Error
P-Value
c
4.31062648 0
0.0000
Net Profit
0.07920285 0
0.0000
SP -0.0203447 0 0.0000
NPA 0.00602017 0 0.0000
ROE -0.0700787 0 0.0000
Multiple R Adjusted R-squared
1 65535
R-
squared Standard Error
1 0
OLS Model of U.S. Banks1. American Express
23
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
Variable
Coefficient
Std. Error
P-Value
c
76.15120556 0
0.0000
Net Profit
0.011535485 0
0.0000
SP 0.001985869 0 0.0000
NPA 0.025261016 0 0.0000
ROE -1.450042532 0 0.0000
Multiple R Adjusted R-squared
1 65535
R-
squared Standard Error
1 0
2. Bank of New York and Mellon
Variable
Coefficient
Std. Error
P-Value
c
79.18287882 0
0.0000
Net Profit
-0.000513838 0
0.0000
SP -0.002397455 0 0.0000
NPA 0.000291839 0 0.0000
ROE 0.001307657 0 0.0000
Multiple R Adjusted R-squared
1 65535
R-
squared Standard Error
1 0
3. Goldman’s Sachs Group
Variable Coefficient Std. Error P-Value
c 110.5062 0 0.0000
Net Profit 0.000915 0 0.0000
SP -0.00456
0
0.0000
NPA 0.000174
0
0.0000
ROE -0.27393 0 0.0000
Multiple R
Adjusted R-squared
1
65535
R-
squared
Standard Error
1
0
4. Wells Fargo and Company
24
Prastuti: Vol. 5, No. 1, July 2016
(VIII) Descriptive StatisticsIndian Banks
1. SBI Bank
NETPROFIT
STAFF
PRODUCTIVITY
NPA
ROE DISCLOSURE
PRACTICES
Mean
10826.80
4.984000
39466.20
13.53400
202.4000
Median
10891.00
4.850000
39676.00
14.04000
200.0000
Maximum 14105.00 6.450000 61605.00 15.94000 206.0000
Minimum 8265.000 3.850000 19535.00 10.49000 200.0000
Std. Dev. 2282.901 0.979020 17498.52 2.029453 3.286335
Skewness 0.341071 0.470851 0.089561 -0.465433 0.408248
Kurtosis 1.918735 2.163272 1.522872 2.213043 1.166667
Jarque-Bera 0.340511 0.330608 0.461248 0.309544 0.839120
Probability
0.843449
0.847636
0.794038
0.856610
0.657336
Sum
54134.00
24.92000
197331.0
67.67000
1012.000
Sum Sq. Dev.
20846545
3.833920
1.22E+09
16.47472
43.20000
Observations 5 5 5 5 5
NETPROFIT STAFF
PRODUCTIVITY NPA ROE DISCLOSUREPRA
CTICES
Mean 4262.600 10.81200 9984.913 18.02400 202.4000
Median 4433.000 11.32000 8922.590 18.52000 200.0000
Maximum 4884.000 12.83000 18880.06 24.59000 206.0000
Minimum 3343.000 8.080000 3214.410 9.690000 200.0000
Std. Dev. 637.2459 1.795542 7494.481 5.867383 3.286335
Skewness -0.501331 -0.565223 0.237279 -0.344809 0.408248
Kurtosis 1.775591 2.195134 1.337799 1.854058 1.166667
Jarque-Bera 0.521772 0.401191 0.498020 0.372657 0.839120 Probability 0.770369 0.818243 0.779572 0.830001 0.657336
Sum 21313.00 54.06000 39939.65 90.12000 1012.000 Sum Sq. Dev. 1624329. 12.89588 1.69E+08 137.7047 43.20000 Observations 5 5 4 5 5
2. PNB Bank
25
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
3. AXIS Bank
NETPROFIT
STAFF
PRODUCTIVITY
NPA
ROE
DISCLOSURE
PRACTICES
Mean 4308.466 14.06400 2052.710 19.99600 202.4000
Median 4242.210 14.35000 1806.300 20.13000 200.0000
Maximum 6217.670 15.42000 3146.410 21.22000 206.0000
Minimum 2514.530 11.63000 1318.000 18.23000 200.0000
Std. Dev. 1455.386 1.430675 727.7107 1.107962 3.286335
Skewness 0.096806 -1.121027 0.611514 -0.726856 0.408248
Kurtosis 1.736795 2.876403 1.985306 2.497055 1.166667 Jarque-Bera 0.340244 1.050434 0.526126 0.492965 0.839120 Probability 0.843562 0.591427 0.768694 0.781545 0.657336
Sum 21542.33 70.32000 10263.55 99.98000 1012.000 Sum Sq. Dev.
8472590.
8.187320
2118251.
4.910320
43.20000
Observations
5
5
5
5
5
NETPROFIT STAFF
PRODUCTIVITY NPA ROE DISCLOSURE
PRACTICES
Mean 4265.754 10.12200 5450.918 18.06000 202.4000
Median 4480.720 10.39000 3152.500 19.04000 200.0000
Maximum 5006.960 11.87000 11875.90 22.19000 206.0000
Minimum 3058.330 7.890000 1842.920 13.00000 200.0000
Std. Dev. 729.7009 1.448420 4338.605 4.103602 3.286335
Skewness -0.951220 -0.521793 0.663842 -0.242480 0.408248
Kurtosis 2.684030 2.429118 1.789569 1.354595 1.166667
Jarque-Bera 0.774816 0.294787 0.672476 0.613030 0.839120
Probability 0.678814 0.862954 0.714453 0.736007 0.657336 Sum 21328.77 50.61000 27254.59 90.30000 1012.000
Sum Sq. Dev. 2129853. 8.391680 75293972 67.35820 43.20000 Observations 5 5 5 5 5
4. BOB
26
Prastuti: Vol. 5, No. 1, July 2016
U.S. Banks1. American Express Bank
NET PROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE
PRACTICES
Mean 4192.60
34000.20
822.400
24.1400
97.0000
Median
4482.00
35541.00
815.000
27.500
97.0000
Maximum
5359.00
41273.00
1201.000
27.800
99.0000
Minimum
2130.00
22238.00
428.000
14.600
95.0000
Std. Dev. 1251.80921 7329.64076 279.87729 5.6888487 1.58113883
Skewness -1.4352861 -1.2249591 -0.125208 -1.66862138 0.000000
Kurtosis 2.3139362 1.66550029 1.1375733 2.4450320 -1.20000
Jarque-Bera
0.809533
0.633659
0.112565
1.075595 0.352083
Probability
0.667133
0.728455
0.945272
0.584033
0.838583
Sum 20963.00
170001.00
4112.00
120.7000
485.000
Sum Sq. Dev.
1567026.3
53723633.7
78331.30
32.36300
2.50000
Observations 5 5 5 5 5
NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE
PRACTICES
Mean
1823.600
5484.200
339.0000
16.58000
92.60000
Median
2523.000
5726.000
341.0000
19.30000
93.00000
Maximum
2647.000
6019.000
550.0000
25.60000
95.00000
Minimum
-813.000
4700.000
156.0000
0.00000
90.00000
Std. Dev. 1484.0946 526.4348 149.76147 10.016087 2.50998008
Skewness -2.16240839 -0.8952453 0.3414351 -1.4875028 -0.19604278
Kurtosis 4.7164340 -0.2768331 -0.092533 2.3777580 -3.0309901
Jarque-Bera
1.760187
0.538717
0.261800
0.368998
0.352083
Probability
0.414744
0.763869
0.877305
0.831521
0.838583
Sum
2202536.80
277133.70
22428.500
100.3220
6.30000
Sum Sq. Dev.
1567026.3
53723633.7
78331.30
32.3630
2.50000
Observations 5 5 5 5 5
2. Bank of New York and Mellon
NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE
PRACTICES
Mean
8308.80
33360.00
27977.20
68443.60
92.60000
Median
7798.00
32900.00
26860.00
69516.00
93.00000
Maximum
13395.00
35700.00
41958.00
71267.00
95.00000
Minimum
4212.00
32400.00
18715.00
63757.00
90.00000
Std. Dev. 3289.7024 1355.7286 8866.00443 3011.05177 2.50998008
Skewness 0.7311238 1.8718779 1.06876966 -1.11876473 -0.1960427
Kurtosis 2.1512363 3.6270974 1.38807540 0.5728970 -3.03099017
Jarque-Bera
0.244958
1.315783
0.517181
0.622293
0.352083
Probability
0.884725
0.517942
0.772139
0.732607
0.838583
Sum
41544.000
166800.00
139886.00
342218.00
463.0000
Sum Sq. Dev.
10822142
1838000
78606034.7
9066432.8
6.30000
Observations 5 5 5 5 5
3. Goldman’s Sachs Group
NETPROFIT STAFF PRODUCTIVITY NPA ROE DISCLOSURE
PRACTICES
Mean
16256.20
4666.40
25981.40
58.46000
92.60000
Median
15869.00
4651.00
25965.00
58.50000
93.00000
Maximum
21878.00
5033.00
32251.00
61.00000
95.00000
Minimum
12275.00
4348.00
19605.00
55.30000
90.00000
Std. Dev. 4175.617643 244.74027 4601.1015 2.0622802 2.509980
Skewness 0.4227996 0.4783146 -0.051074 -0.701480 -0.196042
Kurtosis -1.7143549 1.877201565 0.9513214 1.7879673 -3.030990
Jarque-Bera
0.492215
0.144470
0.122000
0.248240
0.352083
Probability
0.781838
0.930312
0.940823
0.883274
0.838583
Sum
81281.00
23332.00
129907.00
292.3000
463.0000
Sum Sq. Dev.
17435782.7
59897.8
21170132.8
4.253000
6.30000
Observations 5 5 5 5 5
27
A Comparative Study of Disclosures Practices of Selected Indian and U.S. Banks
4. Wells Fargo and Company
The twenty-first century will be the century of knowledge, indeed the century of the intellect. Over the past 30 years, a number of major developments and transformations have taken
place in Indian markets. The choices available to Indian consumers have gone up drastically, be it the number of cars that people can choose from, the number of hospitals they have access to, or even the phones they use to connect to others or the Internet.
A nation’s ability to translate knowledge into wealth and social good through innovations and delivering on competitiveness will determine its future. Innovation and competitiveness are linked at a national level as reflected by the strong correlation between the scores of countries on the Global Innovation Index and the Global Competitiveness. Thus innovations hold the key to the creation as well as processing of knowledge
In looking at the needs for India’s next stage of growth, both industry and policymakers are focusing on strategies for fostering capacity for innovation. The link between innovation and competitiveness can be clearly demonstrated at a national level, and at a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly.
Addressing these competitiveness concerns will require acknowledging that innovation and intellectual property (IP) protection are linked, as today’s invention is tomorrow’s innovation. A stable intellectual property rights (IPR) regime is the foundation of a globally competitive nation, drawing in investments, specifically from FDI. Ultimately, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. It will also provide a stable framework for multinational companies wanting to enter India. Yet there are some critical impediments, which have hampered prospects for broader acceptance of IPR norms, and if addressed may enable greater economic cooperation between countries.
Intellectual Property Rights gallopingIndia the Success way: Study of Innovationand Competitiveness in the Indian Context
Abstract
This research paper will look at the broad contours of India’s current IPR regime and offers an assessment of the current situation as well as scenarios for continued advancement. It begins by looking at the overarching laws and protections afforded to specific types of IP in India. Then the present scenario has been examined, both theoretically as well as through data and analysis, to provide a quick assessment of India’s present IPR regime. The next section looks at the case study of fostering innovation in India’s pharmaceutical sector. Finally, this essay puts forth solutions for removing bottlenecks and helping India create a more robust and stable IPR regime.
Introduction
In looking at the needs for India’s next stage of growth, both industry and policymakers are focusing on strategies for fostering capacity for innovation. The link between innovation and competitiveness can be clearly demonstrated at a national level, and at a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly. With this in mind, a stable IPR regime is the foundation of a globally competitive nation, drawing in investments, specifically from FDI. Ultimately, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. It will also provide a stable framework for multinational companies wanting to enter India. Yet there are some critical impediments, which have hampered prospects
Mayank Sharma*
*Scholar (PGD Intellectual Property Rights – Indian Law Institute (Deemed University), New Delhi under Ministry ofLaw & Justice, GoI) & Assistant Professor , Institute of Management Studies (IMS-NOIDA), A8-B, IMS Campus,near Xerox office sector-62, Noida (UP), [email protected], 09971664997
28
Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
for broader acceptance of IPR norms, and if addressed may enable greater economic cooperation between countries.
Over the past 30 years, a number of major developments and transformations have taken place in Indian markets. The choices available to Indian consumers have gone up drastically, be it the number of cars that people can choose from, the number of hospitals they have access to, or even the phones they use to connect to others or the Internet. All this is a result of market oriented policy reforms that India undertook in the early 1990s, which enabled the telecom, automobile, and retail banking revolutions.
Innovation and competitiveness are linked at a national level as reflected by the strong correlation between the scores of countries on the Global Innovation Index and the Global Competitiveness Index (highlighted by Figure 1). At a subnational level there is also a growing need for understanding the dynamics of innovation and to take requisite steps accordingly. This idea starts with understanding that India’s innovation is a varied reality and not a singular one, with Indian states growing at varying rates.
Yet despite these goals, the Global Competitiveness Report 2014–15 of the World Economic Forum shows India has dropped eleven places and is currently ranked 71 on a list of 144 countries considered for the study.1 Similarly, on the 2014 Global Innovation Index copublished by the World Intellectual Property Organization (WIPO), Cornell University, and Institut Européen d’Administration des Affaires shows that India is ranked 76th out of a total of 143 countries. In both of these rankings, India is placed somewhere in the middle,demonstrating the state of competitiveness and innovation in the country.
Addressing these competitiveness concerns will require acknowledging that innovation and intellectual property (IP) protection are linked, as today’s invention is tomorrow’s innovation. A stable intellectual property rights (IPR) regime is the foundation of a globally competitive nation, drawing in investments, specifically
3from FDI. With this in mind, it is appropriate to acknowledge that the patent ecosystem in India has undergone a change since liberalization in order to cater to growing pressure from foreign countries and domestic companies wanting to export to markets where specific IP standards are required. Accordingly, India embraced the
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the General Agreement on Tariffs and Trade (GATT), later renamed the World Trade Organization in 1994. This enabled India’s IP system and companies to align themselves with global IP standards and supported an increasing move toward harmonization of its IPR regime to global standards. This has aided companies from countries abroad to have a level playing field against companies in India, competing against each other in a range of industries where patents are crucial to gain competitive advantage over peers.
The IPR System in India
India’s IPR system is underscored by a number of policies, laws, and international agreements that shape protections for domestic rights holders as well as how the country views its global obligations. The origins of India’s
29
Types of Protected IP and Their Coverage by Indian Law
Under Indian law, there are six discernible major categories of innovations that are eligible for IP protections.
4Patents. Patents are a set of exclusive rights that are granted to an inventor for making, selling, or using an invention. Three core pieces of legislation—the Patents Act of 1970, Patent Rules of 2003, and Patent Amendment of 2005—form the basis of patent law in India.
The Patents Act has provisions with respect to compulsory licensing, the government’s rights to fix prices for patentable goods, and use of some patents for the government only. The Patent Amendment also allows petitioners to file applications through electronic media (though the paper copy should be filed within one month).
Of note, over the course of several decades, India’s patent law has taken a range of different approaches to the question of “process patents”—that is, whether processes (in contrast with products/molecules/chemical compounds) may be patented. The 1970 law granted process patents, and under its provisions, patents for chemicals, medicines, and drugs were initially granted for a period of fourteen years. This situation changed with the enacting of the Patent Amendment Act of 2002 and Patent Rules, which extended the patent term for a period of twenty years (as well as adding several other provisions related to fees and other questions). Yet with the Patent Amendment of 2005, process patents were completely abolished. This amendment has specific implications for chemical and pharmaceutical industries in particular, which will be discussed later.
Trademarks. Trademarks are recognizable signs, designs, or expressions that identify the goods and services of a producer as being distinct from another. In India, the Trademark Act of 1999 was a redrafted version of the Trademark and Merchandise Marks Act of 1958 that extended trademarks to services as well. Coverage for trademarks in India is ten years from the date the application is first made, while a 2010 amendment to the act enabled stakeholders to take advantage of provisions in the Madrid Protocol, a treaty that protects trademarks in multiple countries through the filing of one application
5with a single office.
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Prastuti: Vol. 5, No. 1, July 2016
4 Intellectual Property India, “The Patents Act, 1970,” http://ipindia.nic.in/ipr/patent/patent_Act_1970_28012013_book.pdf.This section also draws from N.K. Acharaya, Textbook of Intellectual Property Rights, 7th ed. (Hyderabad: Asia Law House, 2014).5 “Madrid Protocol Takes Effect in India,” World Intellectual Property Review, August 7, 2003, http://www.worldipreview.com/news/madrid-protocol-takes-effect-in-india.
IPR system date back to British colonial rule, when as a colony the state enacted various rules and enforcement mechanisms pertaining to IP rights. Post-independence, India retained elements of these structures while updating some guiding regulations and other bureaucratic structures. As India moved toward liberalization, privatization, and globalization in the 1990s and later, Indian policymakers made further adjustments to keep up with growing needs of domestic and international stakeholders. As a result, today the statutory foundation of India’s IPR regime is composed of a patchwork of key laws, governing bodies, and international agreements. These structures are further detailed below.
Importantly, patents have played a key role in changing national and global innovation landscape. The IPR trends during 2003-13, the approved rate of designs (87.38%) and trademarks registrations (65.54%) were significantly higher than the granted patents (22.06%) in India. Though, the patents (63.26%) have generated huge revenues than the designs, trademarks and GIs over last decade.Total number of patent grantsoverthe last 10 years was 69,745 out of which 21.71% were granted to Indians and 78.29% wereto foreign applicants. Maharashtra, Delhi and Southern states are leading in filing patents. Streams like chemical and mechanical engineering have produced highest number of patents whereas bio-technology and foods field were at the low preference.
Copyrights. Copyrights are a form of intellectual property that grants the creator of an original work exclusive rights for distribution for a limited period of time. The first copyright act came to India in 1914, which was modeled on the British Act of 1911. After independence, India’s copyright regulations underwent thorough revisions, ultimately resulting in the Indian Copyright Act of 1957, which included (among other provisions) an extension of copyright protections to cover 50 years of protection. Since then, the act has been amended five times (most recently in 2012), with amendments covering further extensions of the copyright period, updates to reflect the digital environment, and coverage for other media forms, including radio diffusion, cinematographic film, and others.
Geographic indicators. A geographic indicator highlights a place of origin for a product and for the purpose of IP may be closely linked to the perceived value of the good. Examples of geographic indicators include Darjeeling tea, Banarasi Saree in India and Havana, and Champagne internationally. India’s Geographic Indications of Goods (Registration & Protection) Act is relatively new, as it first passed in 1999 and was made in fulfillment of obligations under GATT, to which India is a signatory. The purpose is to exclude unauthorized persons from misusing geographic indicators and protecting consumers against deception from passing off goods not related to any geographic area. The registration of such indicators is valid for a period of ten years and can be renewed for further periods of ten years successively.
Industrial Designs. Indian law also safeguards IP protections for industrial designs based on the unique look or feel of an invention, such as its pattern, shape, or texture. For the purpose of registration, design-related IP protections can be conferred on fourteen classes of goods. Once registered the period of design is fifteen years with renewals at every five-year period. After fifteen years the design becomes open and public property.
6Additionally, within the field of design the Semiconductor Integrated Circuits Layout Design Act and Rules of 2000 seeks specific protections for semiconductors. This act gives an owner an exclusive right
to create layout design for a period of ten years. The act enables the owner to commercially exploit their creation and, in the cases of infringement, seek relief under its provisions.
7Agriculture. Under Indian law, IPR related to innovation in crops and planting are covered by the Protection of Plant Varieties and Farmers’ Rights Act of 2001. This act seeks to provide for the “establishment of an effective system for protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.” The duration of protection of registered varieties is different for types of crops. For trees and vines, the protection is eighteen years, while for other crops it is fifteen years. Similarly, for extant varieties, protection is fifteen years from the date of notification.
Domestic Governance and Management of IPR
To execute and enforce the statutory guidelines above, India has a patchwork bureaucracy, which, as of this writing, is being updated under the guidance of a new national IP think tank. As such, the governance and management of IPR in India still currently falls under various offices that cut across different parts of the national government.
As can be seen in Figure 4 and Table 1, IP protection is the responsibility of a number of departments, including the Department of Education, the Department of Information Technology, the Department of Agriculture and Cooperation, and the Department of Industrial Policy and Promotion, among others. While several of these departments can be found within the Ministry of Commerce and Industry, other departments are housed in ministries from different parts of the national government.
A key figure in these structures is the Controller General of Patents Designs and Trademarks (CGPDTM), whose office falls under the Department of Industrial Policy and Promotion at the Ministry of Commerce and Industry. This office is a critical element of India’s IP structure, as it is responsible for managing the broadest spectrum of IP types. As highlighted in Figure 4, the CGPDTM has various
31
Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
6 Ministry of Law, Justice and Company Affairs (India), The Semiconductor Integrated Circuits Layout-Design Act, 2000, Act ofParliament no. 37 of 2000, no. DL-33004/2000 (New Delhi, September 4, 2000), http://sicldr.gov.in/Resources/SICLDRA1.pdf.7 Ministry of Law, Justice and Company Affairs (India), The Protection of Plant Varieties and Farmers’ Rights Act, 2001, Act ofParliament no. 53 of 2001, no. DL-33004/2000 (New Delhi, October 30, 2001), http://agricoop.nic.in/PPV&FR%20Act,%202001.pdf.
registries under it, namely trademark and geographic indicator registries. The trademark registry is located at five regional centers, and the geographic indicators registry is located at Chennai. Similarly the CGPDTM has four regional patent offices under it, located at the four metropolitan centers, namely Mumbai, Chennai, Delhi, and Kolkata. The patent information system at Nagpur also reports to the CGPDTM. In addition to the above registries and offices, there is also a national institute for IP management under the CGPDTM.
Legislation Department Agency/ Body
Patents Act, 1970 (amended in 1999, 2002 Department of Industrial Controller General of Patents,
and 2005)
Policy & Promotion
Designs and Trademarks (CGPDTM)
Designs Act, 2000
Department of Industrial
Controller General of Patents,
Policy & Promotion
Designs and Trademarks (CGPDTM)
Trade Marks Act, 1999 (amended in 2010)
Department of Industrial
Controller General of Patents,
Policy & Promotion
Designs and Trademarks (CGPDTM)
Geographical Indications of Goods
Department of Industrial
Controller General of Patents,
(Registration & Protection) Act, 1999
Policy & Promotion
Designs and Trademarks (CGPDTM)
Copyright is protected through Copyright Department of Higher
Copyright Office
Act, 1957, as amended in 2012
Education
Layout of transistors and other circuitry
elements is protected through The Semi-
Department of Information
Semiconductor Integrated Circuits
conductor Integrated Circuits Layout -
Technology
Layout Design Registry
Design Act, 2000
New varieties of plants are protected
Department of Agriculture
Plant Varieties and Farmers’ Rights
through the Protection of Plant Varieties and
and Cooperation. Authority
Farmers' Rights Act, 2001
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Prastuti: Vol. 5, No. 1, July 2016
Figure 4 Office Structure of CGPDTM
Source: Controller General of Patents, Designs and Trademarks(India), Annual Report 2012–2013 (New Delhi,2013), http://ipindia.gov.in / cgpdtm / Annual Report _ English _ 2012 _ 2013 .pdf.
International Protections for IPR: TRIPS
Finally, the third pillar of India’s IPR regime is defined as its obligations under international frameworks. On this front, perhaps the most pressing and important agreement for understanding India’s engagement in the international IPR system is its response to TRIPS. India’s position with respect to TRIPS began with being defensive about the country’s obligations and its IPR developments, slowly changed to moderation, and finally changed to being aggressive with respect to some specific dimensions.
8Initially, India held a more defensive view of the international IPR regime. In the 1970s, it passed through a phase of “know-why” oriented technological learning, when the country focused technological development on building up process capabilities through reverse engineering. This phase was possible because India’s 1970 Patent Act allowed for this view of “know-why” development coupled with emerging IPR culture, such as by allowing process.
9patents on chemical substances. Internationally, this put the country at odds with the suggested requirements of TRIPS after 1994 when the agreement came into force. Ultimately, India saw a proliferation of its “process” industry during the initial years from the 1970s onwards, while at the international level pharmaceutical companies already wanted a more stringent IPR regime. India’s pharmaceutical industry initially was strongly opposed to the idea of product patents and led the push for defense against TRIPS.
10During the 1990s, the pharmaceutical industry’s business interests in India became sharply divided, with some multinational corporations wanting to export to overseas markets, utilizing India’s largely cheap labor. These corporations came out strongly in support of the TRIPS Agreement. A large number still did not feel that they had adequately caught up with the rest of the pack and wanted the process patent regime to be extended.
India accordingly signed the TRIPS Agreement in 1994. Mentioned in the GATT treaty was also that member countries conform to their national legislations on IPR and to the conventions and suggestions contained in the treaty. The declaration recognizes members’ “right to grant compulsory licenses and the freedom to determine the grounds upon which such licenses are granted.” It also grants each member the “right to determine what constitutes a national emergency or other circumstances of extreme urgency” in implementing TRIPS.
Analysis
The acts and legislations of India at present are increasingly coming in contact with international conventions, and in the years ahead further harmonization with the international system is expected. The IP system is in a state of transition, and a look at its facts and figures offers insights into the functioning of the system under the boundaries of these key legislations and treaties.
11Trends in IP Activity
The functioning of the IP ecosystem in India can be gauged effectively from the trends in IP activity. The section looks at four kinds of IP that fall under the CGPDTM. These statistics reflect trends pertaining to various IP activities as reported by different offices/registries. What follows are some of the trends that have been observed in the IP filings and grants of the CGPDTM over the past few years.
Patents
The total number of patent applications filed rose from 2,613 in 2003–4 to 43,674 in 2012– 13. Though these figures are far smaller than commensurate figures for China and the United States (whose total patent applications were 825,136 and 571,612, respectively, in 2013). India’s patent office is eighth overall in patent filings in 2013 according to the WIPO, ahead of patent filings in offices of Canada and Brazil with filings of 34,741
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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
8 A “know why” capability is in contrast with a “know how” capability. A know-why capability is based on understanding the processand reverse engineering, while a “know-how capability is based on increasing the production efficiency. 9 A process patent is in contrast with a product patent. A process patent is granted for a manufacturing process that is different fromthe original process, while a product patent is granted for only a product that is different from the original product.10 “Declaration on TRIPs Agreement and Public Health,” World Trade Organization, November 20, 2001, http://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_trips_e.htm.11This section draws heavily from various rounds of annual reports from the Indian Controller General of Patents, Design andTrademarks, Department of Industrial Policy and Promotion, Ministry of Industry and Commerce, all of which are accessible athttp://ipindia.gov.in/main_text1.htm.
and 30,884 applications, respectively. The WIPO data included applications by foreign companies through the Patent Cooperation Treaty route as well as by Indian institutions, individuals, and companies. The patent grants have likewise increased from 2,469 to 4,126 during the commensurate period. These grants are also miniscule when compared with international patent offices.
12At a subnational level, Maharashtra reported the maximum number of filings, which has remained unchanged in the years 2007–8 and 2012–13. Delhi and Karnataka are other subnational regions doing well on patent filings. Also, it is worth noting that the states that have a higher GDP tend to have higher patent filings. This
2trend is indicated by an R value of 0.76. One needs to look at the patent innovation in India according to the state categorizations, as this helps one understand the dynamics of innovation in a much better manner.
13While looking at the international filings, it is interesting to note that the maximum filings occur through the Patent Cooperation Treaty (PCT) route that is roughly 85% of all the applications made by nonresidents in 2012–13. The United States reported the maximum number of PCT filings in India, and the top three countries for both
2007–8 and 2012–13 were the same, with the United States, Germany, and Japan accounting for more than 50% of patent filings in India.
Trademarks
The various registries of trademarks have reported an increase in the number of trademarks filed from 92,251 to more than double at 194,216. The registered section however shows a haphazard pattern with registrations moving up and down in a random manner, suggesting limited insights from an analysis of this raw data.Design
Designs have also seen an increasing trend from 2003–4 to 2012–13. The number of designs filed has increased from 3,357 to more than twice that number at 8,337. The designs granted have also increased significantly from 2,547 in 2003–4 to 7,252 in 2012–13.
Geographical Indicators
Geographical Indicators have registered an incoherent pattern over the past few years since the act came into being in 1999 and the GI registry was established. Over the past five years, 132 indicators have been registered.
Comparison of the revenue generated for the last 10 years
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Prastuti: Vol. 5, No. 1, July 2016
12An R2 value is a measure of goodness of fit of a linear regression. The value R2 is a fraction between 0.0 and 1.0 and has no units.An R2 value of 0.0 means that knowing X does not help one predict Y. There is no linear relationship between X and Y, and the best-fitline is a horizontal line going through the mean of all Y values. When R2 equals 1.0, all points lie exactly on a straight line with noscatter. An R2 value of 0.73 is strong enough to predict a correlation between X and Y.13 To know more about the PCT route, see “The PCT Applicant’s Guide,”WIPO,http://www.wipo.int/pct/guide/en/gdvol2/pdf/gdvol2.pdf.
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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
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Prastuti: Vol. 5, No. 1, July 2016
37
Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
Analysis
All these trends demonstrate that the present IPR regime, especially after India became a signatory to TRIPS, has strengthened compared with the past and is bound to strengthen moving ahead in light of greater harmonization between IPR regimes across the world. IPR in years to come might see an increasing national
participation that will auger well for the IPR ecosystem to develop to its full potential in India. This trend will also be important from a future competitiveness point of view. Countries that have had stronger IPR regimes have tended to develop more than countries with an absence of robust IPR protections.
Case Study: Fostering Innovation in India’s 14Pharmaceutical Sector
While the preceding sections looked at India’s IP protections from the vantage point of individual types of
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Prastuti: Vol. 5, No. 1, July 2016
IP, it is helpful to view India’s IPR regime in the context of a particular industry, to see how a stronger regime might have larger impacts on India’s macro economy. With this in mind, the sector that could witness a lot of changes with the emergence of an IPR regime in India is the pharmaceutical sector. In this sector, patents are crucial for gaining competitive advantage, and India’s promotion of IP protections is of critical importance to this sector’s health and continued development.
The pharmaceutical industry in India at present is highly fragmented and clustered and faces stiff competition. The industry is clustered in the western states of Gujarat and Maharashtra and also in the southern belt of Andhra Pradesh and Tamil Nadu. It is highly fragmented and had over 10,000 pharmaceutical manufacturing units in 2007.At a high level, a typical global pharmaceutical company has a value chain that consists of three core steps where value is added to a product: (1) drug discovery and development, (2) clinical trials, and (3) manufacturing. Most Indian companies are not really entering the market
for drug discovery and development at this point and prefer to copy from existing drug concepts. They go in after this for equivalence testing at the clinical trial stage and f ina l ly go in for manufactur ing act ive pharmaceuticals, which are then added to formulations to yield final pharmaceutical drugs.
Additionally, the overall focus of Indian companies is still on operations and marketing without looking at the technology development that is a strategic imperative for most multinationals. This focus arose from the 1970’s process patent regime. Over time it also led to a mindset
15termed “jugaad innovation.” Jugaad is a Hindi word that literally means “makeshift” and roughly translates as “overcoming harsh constraints by improvising an effective solution
Geographical Indicators
Geographical Indicators have registered an incoherent pattern over the past few years since the act came into being in 1999 and the GI registry was established. Over the past five years, 132 indicators have been registered.
39
Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
14 This section draws heavily from the pioneering work of Professor Michael E. Porter of Harvard Business School. http://kkozak.wz.cz/Porter.pdf; and Vivek Wadhwaand et al., “The Globalization of Innovation: Pharmaceuticals: Can India and China Cure the GlobalPharmaceutical Market,” Kauffman, June 2008; For a detailed analysis, see appendix 1 and 2 for recent developments and conceptualframeworks as applied to the pharmaceutical industry in India.15For more on Jugaad Innovation, see http://jugaadinnovation.com.
Analysis
All these trends demonstrate that the present IPR regime, especially after India became a signatory to TRIPS, has strengthened compared with the past and is bound to strengthen moving ahead in light of greater harmonization between IPR regimes across the world. IPR in years to come might see an increasing national participation that will auger well for the IPR ecosystem to develop to its full potential in India. This trend will also be important from a future competitiveness point of view. Countries that have had stronger IPR regimes have tended to develop more than countries with an absence of robust IPR protections.
Case Study: Fostering Innovation in India’s 14Pharmaceutical Sector
While the preceding sections looked at India’s IP protections from the vantage point of individual types of IP, it is helpful to view India’s IPR regime in the context of a particular industry, to see how a stronger regime might have larger impacts on India’s macro economy. With this in mind, the sector that could witness a lot of changes with the emergence of an IPR regime in India is the pharmaceutical sector. In this sector, patents are crucial for gaining competitive advantage, and India’s promotion of IP protections is of critical importance to this sector’s health and continued development.
The pharmaceutical industry in India at present is highly fragmented and clustered and faces stiff competition. The industry is clustered in the western states of Gujarat and Maharashtra and also in the southern belt of Andhra Pradesh and Tamil Nadu. It is highly fragmented and had over 10,000 pharmaceutical manufacturing units in 2007.
At a high level, a typical global pharmaceutical company has a value chain that consists of three core steps where value is added to a product: (1) drug discovery and development, (2) clinical trials, and (3) manufacturing.
Most Indian companies are not really entering the market for drug discovery and development at this point and prefer to copy from existing drug concepts. They go in after this for equivalence testing at the clinical trial stage and f ina l ly go in for manufactur ing act ive pharmaceuticals, which are then added to formulations to yield final pharmaceutical drugs.
15Additionally, the overall focus of Indian companies is still on operations and marketing without looking at the technology development that is a strategic imperative for most multinationals. This focus arose from the 1970’s process patent regime. Over time it also led to a mindset termed “jugaad innovation.” Jugaad is a Hindi word that literally means “makeshift” and roughly translates as “overcoming harsh constraints by improvising an effective solutionusing limited resources.”
16 It is a temporary substitute and not formally an actual innovation that is generally looked upon as a systematic and process-driven activity. Jugaad as a mindset has caused shortcuts to emerge, which have resulted in poor patenting rates in India. This mindset is in contrast to the general value chain for most global pharmaceutical companies.
However, a number of Indian companies also increasingly see the value of this drug discovery route in trying to move up the value chain. In addition, a lot of strategic alliances have emerged between Indian companies and their global counterparts. Indian drugs are also under a price control regime and face regulatory issues, with the recent acquisition of Ranbaxy by Sun Pharma coming under investigation by the Competition Commission of
17India. The acquisition is now complete.
18This is a step in the right direction that was taken to promote competition and not let the consumer suffer due to acquisition. However, the Indian pharmaceutical industry still is mostly operative at the low end of the value chain, with generic drugs accounting for a
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16Navi Radjou, Jaideep Prabhu, and Simone Ahuja, “A Q&A with Navi Radjou, Jaideep Prabhu and Simone Ahuja, Authors of JugaadInnovation,” Jugaad Innovation, http://jugaadinnovation.com/about-the-authors/qa-with-authors/.17The National Pharmaceutical Pricing Authority is the nodal agency for controlling prices of certain essential drugs; the Ranbaxy sitenow redirects to Sun Pharma. For more on this, see http://www.ranbaxy.com/sun-pharma-to-acquire-ranbaxy-in-a-us4-billion-landmark-transaction/.18The main problem in the acquisition was that the merger was causing monopolization in certain product molecule markets.The Competition Commission of India (CCI) intervened, and where the market share was very high following the merger, the CCIinsisted on divesting that product from the entity.
considerable portion of the revenues for players in the Indian market.
Ultimately, the industry structure will be altered significantly with a stringent IPR regime. There will be an incentive to invest in R&D. The scale of operations may also increase with better prospects for exports from larger companies. This will also enable Indian companies in the pharmaceutical domain to move up in the value chain and have better realizations and greater investment in R&D. The companies could move toward a differentiated pricing regime with different prices as per the paying ability of consumers in Indian and foreign markets.
Impediments to Future Growth of the IPR Regime and Future Steps
Ultimately, in both pharmaceuticals and its wider industries, India will do well in the long term if it enables a robust IP ecosystem and protects the IP of its own companies. Yet there are critical impediments that have hampered prospects for broader acceptance of IPR norms and that if addressed may enable greater economic cooperation between countries. Some of these impediments are tangible while others appear to be intangible.
The tangible factors are as follows:
General environment of protection and enforcement with respect to IPR
Concerns raised in the U.S. Trade Representative’s Special 301 Report during its various rounds since 1989, due to which India is on a priority watch list since 1994
The U.S. Chamber of Commerce’s GIPC’s Index, which ranked India last among the 25 counties considered for the index in 2014 and second-worst after Thailand in 2015
Growing piracy, particularly over the Internet with respect to various IP rights and copyright law
19The cost of registration of IP, which at times are quite high, leading a number of IPR regimes to go for a utility model
Low digitization of patent records and lack of human resources in IP officesA large backlog of cases pertaining to IPR that has resulted in a delayed process of redressing grievances
20No special court for IPR
21Lack of protection for trade secrets
The intangible aspects of IPR that are impediments to a full-scale adoption of the current IPR regime are as follows: Sociocultural and other historical factors Access to medicines for poor people
Regarding these two intangible factors, although India’s association with the patent regime has been long-standing, neither corporations nor the common people have really latched on to the idea. Since most people in a country like India are poor, access to medicines will become increasingly difficult if the IPR regime is established as it is in United States. The industry is also largely informal, fragmented, and at the bottom end of the value chain, where imitation is rampant. Expecting the industry to change overnight is not pragmatic. The fact that most medicines are generics in India does not mean that India does not upgrade the IP system to foster innovation, at least for the top 35 players in the pharmaceutical sector. At the present stage of development of the industry and economy, India should aim for strengthening IP protection while at the same time granting greater autonomy to the National Pharmaceutical Pricing Authority and other regulators for a more innovative, yet at the same time a highly regulated, industry.
Addressing these issues will require a policy direction that will enable India’s IPR regime to follow global standards while at the same time realizing the innovation potential
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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
19“Protecting Innovation by Utility Models,” WIPO, http://www.wipo.int/sme/en/ip_business/utility_models/utility_models.htm.20Unlike some other Asian countries (most notably Malaysia and Taiwan), India does not have a special court for settlement ofIPR-related disputes. There is in existence the Intellectual Property Appellate Board, but this board has its own set of issues withrespect to functioning and understaffing.21The current law does not adequately protect trade secrets in India. There is a concern with respect to matters not falling under thecontract law, as in the case of protection of trade secrets.
of various Indian states. The first public draft of the national IP policy seeks to clear the air on a lot of issues pertaining to the Indian IPR regime and is a step in the right direction. Future steps could help improve the acceptability of a more robust IPR regime and include the following policies.
22Improvement in present IPR regime. This may take place with removal of prejudices and focus on scientific temper in people and providing an ease of filing patents. The draft IP policy is a step in the right direction that seeks to establish a “dynamic, vibrant and balanced intellectual property system in India.” It will also involve having more Indians file different forms of IP like patents, etc. The utility model that is envisaged will also greatly benefit micro, small, and medium sector enterprises.
Establishment of special IP courts with trained human resources. Although an Intellectual Property Appellate Board (IPAB) is present in India, its functioning should be improved. The draft policy talks about increasing the powers of the IPAB and opening regional branches. It is imperative to have professional IP courts with trained lawyers and judges for effective understanding and enforcement of IP laws. This may be based on the model of other Asian countries like Malaysia and Taiwan, which could help improve the functioning of courts on IPR.
23More research on linkages between a better IPR regime and greater innovation. This may be undertaken as research that calls for IPR regimes and their impact. Figure 1 in this report tries to do just that. This point requires a greater research focus on finding linkages between greater IP protection and greater innovation.24Protection of trade secrets. Currently there is no separate legislation that regulates the protection of trade
secrets in India, though there is the draft Innovation Act of 2008 that seeks to protect the same. According to the WIPO, trade-secret protection is particularly important for small and medium-sized enterprises, as protection is indefinite. This legislation for protection of secrets would broaden the scope of the current IPR regime.
State level policy for improving innovation. At present there are very few present policies aimed at bettering IP and innovation potential in states. Such regimes could augur well for an improvement in investments under these regimes.
25Dispute resolution through bilateral talks and international treaties. Governments of several countries working together have a prominent role to play in resolving disputes. Recently, India and the United States have led the way in this regard by establishing “an annual high-level Intellectual Property (IP) Working Group with appropriate decision making and technical level meetings as a part of the trade policy forum.” Similarly, India could look at treaties like the Hague Treaty on Industrial Designs to strengthen its IPR regime.
All these steps could help India not only attain competitiveness from the current viewpoint but also maintain sustainable competitive advantage over a longer t ime f rame and enhance i ts future competitiveness.
Conclusions
The broad level contours of IP policy are now visible in the
form of the national IP policy. India now needs to improve
the IPR regime both from the side of the legislation and
also from the side of enforcement of laws. This
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22IPR Think Tank (India), “National IPR Policy,” December 19, 2014, http://dipp.nic.in/English/Schemes/Intellectual_Property_Rights/IPR_Policy_24December2014.pdf.23 According to Stiglitz et al., there is no clear link between a stronger IPR regime and great innovation. This is also a concern that theAmerican IPR regime—the positive example of IPR protection that served as the basis for encouraging other countries to sign theTRIPS agreement—seems to be too focused on rent seeking ,which may not be appropriate for developing countries. While it may betrue that IPR regimes and innovations may not be connected empirically, what must be also observed is the incentive structure andhow it gets distorted in the absence of adequate protection. Also, if IPR regimes are existent not only due to links with innovation butalso a means of ensuring future R&D and inventions that act as the basis for innovations. Also, regimes elsewhere are bettering—acase in point is China a country with world’s largest population and a per capita GDP roughly thrice of India, strengthening its IPRregime substantially. For more on this, see Giovanni Dosia and Joseph Stiglitz, “The Role of Intellectual Property Rights in theDevelopment Process, with Some Lessons from Developed Countries: An Introduction,” Laboratory of Economics and ManagementWorking Paper Series, no. 2013/23, 2013.24 Tariq Ahmad, “Protection of Trade Secrets: India,” Library of Congress, August 2013, http://www.loc.gov/law/help/tradesecrets/india.php.25 “DIPP Statement on Bilateral Mechanism for Discussing IPR Issues,” Press Information Bureau, Government of India, October 3, 2014,http://dipp.nic.in/English/News/India_US_IPR_04October2014.pdf.
improvement will help in the creation of a better
environment for improving the overall innovation in the
country. The need also exists to start looking at and
understanding the IPR regimes abroad and, more
importantly, bringing in the requisite changes, such as
better digitization, in the present regime. For this, Indian
states as well as industry will have to play a proactive role
in asking the central government for a better IP protection
regime so that there is greater innovation at the state
level , which contr ibutes toward the future
competitiveness of India. Particular industries’
performance, namely the pharmaceutical industry, will
depend on the kind of IPR regime prevalent in India. It is
important, however, that the likely impacts of introducing
various measures are taken into account before framing
and implementing IP policy.
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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
Appendix 1: Additional Recent Developments in IP Issues in India
Several changes have been seen in India’s IPR regime since the formation of the new national government in May 2014. The first of these was Prime Minister Modi’s five-day visit to the United States that started on September 27, 2014, after which the Prime Minister’s Office of India and the White House on September 30 issued a joint statement. The statement mentioned the need to “establish an annual high-level Intellectual Property (IP) Working Group with appropriate decision-
chnmaking and te ical-level meetings as part of the Trade 26Policy Forum.”
Next, the United States conducted an out-of-cycle review of India’s IPR regime. The review had proposed a deadline for submission of written comments by the public by October 30, 2014, and had set a deadline for submission of written comments by foreign governments by November 7, 2014. Meanwhile, in another significant step the Department of Industrial Policy and Promotion (DIPP) on October 22 constituted an IPR think tank (comprising one chairperson and five other members) to draft the National Intellectual Property Rights Policy and to advice DIPP on IPR issues. The think tank submitted the draft legislation to DIPP and put this up on its website on December 19, 2014.
Also, the U.S. Chamber of Commerce’s Global Intellectual Property Center in February 2015 released its annual report on IP, which placed India as a country having the second-weakest IP environment out of the 30 countries considered for making the international index. The index ranked countries on 30 parameters, with countries assigned one point for each parameter. India scored a dismal 7.23, just ahead of Thailand (7.10).
This Index was followed by the USTR’s Special 301 Report, which came out in April 2015. The report placed India again on the Priority Watch List in 2015 and further encouraged progress on IPR issues. The report was also positive about the draft IP policy and the progress made so far. Considering the changes that are underway, India is indeed on the cusp of a major IP revolution of sorts that may change the dynamics of IP protection and enforcement, thus leading to greater innovation.
National Intellectual Property Rights Policy - 2016
On 12 May 2016, the Indian government approved its first ever National Intellectual Property Rights (IPR) Policy. This National Policy was drafted by an independent IPR Think Tank that consisted of six members, chaired by Justice (retired) Prabha Sridevan.
The main focus of this policy is related to the slogan ‘Creative India, Innovative India’, which subsequently is aligned to different government initiatives and missions in recent times that include ‘Make in India’, ‘Atal Innovation Mission’, ‘Start-Up India’, and ‘Stand-Up India ’ promoting creat iv i ty, innovat ion and entrepreneurship in the country.
The guiding principles of the policy are explicitly elaborated in its Vision and Mission statements. The stated vision of this policy is: ‘An India where creativity and innovation are stimulated by Intellectual Property for the benefit of all; an India where intellectual property promotes advancement in science and technology,arts and culture, traditional knowledge and biodiversity resources; an India where knowledge is the main driver of development, and knowledge owned is transformed into knowledge shared’.
While, the stated mission of the policy is: ‘Stimulate a dynamic, vibrant and balanced intellectual property rights system in India to: (a) foster creativity and innovation and thereby, promote entrepreneurship and enhance socio-economic and cultural development, and (b) focus on enhancing access to healthcare, food security and environmental protection, among other sectors of vital social, economic and technological importance.
The scope of the policy encompasses all legislations related to intellectual property protection for the inventors, creators, designers and entrepreneurs in the country, namely, the
v Patents Act, 1970; v Trade Marks Act, 1999; v Designs Act, 2000; v G e o g ra p h i c a l I n d i c a t i o n s o f G o o d s
(Registration and Protection) Act, 1999;
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v Copyright Act, 1957; v Semiconductor Integrated Circuits Layout-
Design (SICLD) Act, 2000; v Protection of Plant Varieties and Farmers’
Rights Act, 2001; and v Biological Diversity Act, 2002.
The policy provides the guided principles of administration of eight aforesaid National Acts. The policy also proposes administration of related IPR Acts from a single line ministry, i.e. Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry. Thus, IP resources under the Copyright Act and the SICLD Act are brought to DIPP respectively from the Ministry of Human Resource Development (MHRD) and the Department of Electronics and Information Technology (DeitY). Henceforth, DIPP will administer, admit applications, and maintain the respective registry for patents, trademarks, industrial designs, copyrights, SICLD, and geographical indications of goods.
The ministries, namely, the Ministry of Agriculture and Farmers Welfare, and the Ministry of Environment, Forest and Climate Change continue to administer the IP resources under the Biological Diversity Act and Protection of Plant Varieties and Farmers’ Rights Act. The policy then emphasizes on safeguarding traditional knowledge (TK), genetic resources (GR), traditional cultural expressions (TCE) and folklores, which are essential for maintaining cultural diversity and unique identity of the country and the regions. Here, the policy suggests widening the scope of the existing Traditional Knowledge Digital Library (TKDL) by including different IP resources beyond the Indian systems of medicine.
The IPR policy also recognizes the interests of poor patients in developing countries as identified from its text: ‘the contribution of the Indian pharmaceutical sector in enabling access to affordable medicines globally and its transformation to being the pharmacy of the world’. India is also a signatory to the recently adopted United Nations’ Sustainable Development Goals (SDGs). One of the targets of SDG 3 (Good Health and Well-Being) emphasizes on easy and equitable access to medicines and vaccines. TheTarget states, ‘3.B Support the research and development of vaccines and medicines for the
communicable and non communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health, which affirms the right of developing countries to use fully the provisions in the Agreement on Trade-Related Aspects of Intellectual Property Rights regarding flexibilities to protect public health, and, in particular, provide access to medicines for all’.
The majority of critics of this IPR Policy are apprehensive on weak provisions of affordable medicines and seeds in the IPR policy document3. Thus, the IP administrators in the country should recognize this provision in SDGs and India’s commitments. DIPP should broaden its resources for safeguarding the interests of the poor patients.
The policy also emphasizes on operational strategies in strengthening IP incubation and facilitation centres in different creative and innovative organizations for improving their institutional IP portfolios at par with the global standards. The Atal Innovation Mission also has similar operational objectives. Thus, the IP awareness and capacity development in the industries, MSMEs (micro, small and medium enterprises), startups, R&D institutions, science and technology institutions, universities and colleges are given priority for the early foundation of a holistic and conducive innovation ecosystem in the country. While building strong IP-led cultures in the country, India’s economic growth and technological progress would make a significant impact in other areas of human development, such as poverty alleviation and zero hunger.
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Intellectual Property Rights galloping India the Success way: Study of Innovation and Competitiveness in the Indian Context
Organizational challenges are always not measured by their wealth but their employees who face challenges in the form of changing composition not only by work pressure but also by peer pressure and attitude of the work force where prolonged mistreatment at the work place would have significant impact on the employee’s productivity. This research paper aims to review the studies and examine the effectiveness of Workplace Bullying on Employees’ Productivity in private organizations. This research paper is Descriptive in nature and makes use of primary data as well as secondary data and explored that being a victim of bullying can lead to adverse effects which cause psychological and physical health problems.
Keywords: Work place Bullying, Productivity, Organization Effectiveness, Effects.
Effect of Workplace Bullying onEmployees Productivity in thePrivate Organizations withspecial Reference to Delhi & NCR
Abstract
Introduction
Workplace bullying is a common practices across the
organizations but its depends organizations to
organizations, depending primarily on the size of the
organization. We normally private organization has a
huge target to achieve mainly to survive in this
competitive world where sustainability is always at the
edge However, private Organizations, where line
managers assume major role in effective human
Resource management Practices. Where all official
authorities typically assume the following four areas of
responsibility: Establishing deadlines to achieve the
target through proper procedures, developing methods,
monitoring and evaluating these practices, and guiding
managers or staff on concerned matters. While as excess
of everything is bad similarly, the term workplace
bullying is too complex to have universal definition but
yes it does not mean a strict supervisor, warrant for
demotion, discipline counseling or fear of termination.
Work place bullying happens when there is a ignorance
of the issue, Bully supported through actions or
inactions of management, Stressed employees taking
frustration out on others, no system of reporting or
protection for victims , lack of recognition and anti
–bullying laws .
The success of an employee’s productivity matters on
the capabilities of both parties to do complete work
correctly. Professionals create and develop the system,
while managers provide the actual productivity (related
to upper-management approval), what procedures to
follow when implementing practice. For instance, in
selection the HR professional may construct the
application blank, develop a structured interview guide,
or choose an employment test. HR professionals also
Shaifali Garg* Dr.A.K.srivastav**
*Assistant professor, GLA University, Mathura. Email id: [email protected] **Director, Institute of Productivity Management, Ghaziabad,[email protected]
46
must ensure that the firm's HRM practices are properly
implemented. This responsibility contains both
evaluating and monitoring which can only be achieve by
making conducive environment where people believe
that only way to handle bullying target is to accepts the
bullying as part of employment ,victims fear retribution or
losing position for making waves ,and majority people
think bullying behavior end only by leaving the company
entirely.
Literature Review
The researchers have used various definitions to explain
the concept of workplace bullying based on their research
perspectives. Still, the researchers are trying to develop a
globally accepted definition of workplace bullying
(Saunders, Huynh & Goodman-Delahunty, 2007). Most of
the researchers have adopted the following definition of
workplace bullying:
Bullying at work means harassing, offending, socially
excluding someone or negatively affecting someone’s
work tasks. In order for the label bullying to be applied to a
particular activity, interaction or process has to occur
repeatedly and regularly (e.g., weekly) and over a period
(e.g., six months). Bullying is an escalated process in the
course of which the person confronted ends up in an
inferior position and becomes the target of a systematic
negative social act (Einarsen et al., 2003, p. 15).
Quine (2001) rightly observed that workplace bullying has
three common themes, namely, impact on the recipient;
negative effects on the victim; and the persistent nature
of bullying behavior. The impact of workplace bullying on
an employee arise from its perception in a negative light
which translate into making the victim to feel upset,
threatened, humiliated or vulnerable with a high level of
anxiety, depression, helplessness, burnout and
frustration (Keashly & Neuman, 2004).
From the definition, it is understood that exposure to
negative social behaviors, frequency and duration of
exposure and the perceived power disparity are the key
features of workplace bullying. The exposure to negative
social behaviors is the prime feature of workplace
bullying. There is no definite list of bullying behaviors—it
might be common in daily life, but occurrence on a regular
basis may cause harm and humiliation to the victims
(Leymann, 1990). The researchers broadly categorized
negative bullying behaviors into (1) work-related
behaviors (e.g., excessive monitoring of work,
unmanageable workload and judging work wrongly) and
(2) person related behaviors (e.g., rumours, undermining,
verbal abuse, persistent criticism, false accusations and
social isolation) (Bartlett & Bartlett, 2011; Einarsen et al.,
2003). The second defining feature of bullying is the
frequency and duration of exposure to negative social
behaviors in the workplace. The frequency is the number
of times of exposure to negative acts and duration is the
length of such recurring acts (Rayner, Hoel & Cooper,
2002). The manifestation of work related bullying
includes giving unachievable task, impossible deadlines,
unmanageable workloads, meaningless tasks,
withholding information deliberately or supplying
unclear information, threats about job security, and
scapegoating (Tumbur &Vardi, 2009 .The researchers
have set the varying frequency and duration to determine
the victims of workplace bullying.
Leymann (1996) proposes that the employees who are
exposed to at least one negative behaviour weekly over a
period of six months can be considered as victims of
bullying at work. Mikkelsen and Einarsen (2001) claim
that exposure to at least two negative acts weekly over
duration of six months is required to classify the
experience as bullying. Most of the researchers endorse a
minimum period of exposure of either six months
(Leymann, 1996; Lutgen-Sandvik, Tracy & Alberts, 2007;
Mikkelsen & Einarsen, 2001) or 12 months (Rutherford &
Rissel, 2004; Salin, 2001; Yildrim, 2009).
The previous research highlights that the employees felt
being victimized even with a lesser duration of six months
(Vartia, 2001). The third feature is the power disparity
experienced between the perpetrator and the target
(Einarsen et al., 2003; Salin, 2003). Power difference may
be present at the onset of the bullying behaviours or it
might evolve over a period. The power difference could
be real or perceived, but the victims might find it difficult
to defend and stop the situations of bullying (Einarsen,
1999). The power disparity could be either due to the
formal power of organizational position or due to the
informal power, such as, social support, knowledge and
experience (Einarsen, 2000; Einarsen et al., 2003).
47
Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR
Objectives of study
The primary objective of the study is to have an in depth
understanding of the effect of workplace bullying on
various human resource aspects such as employee
productivity,
• To study the significant relationship between work
Place bullying on the work performance (Employees
‘productivity).
Hypothesis:
Ho 1 There is no significance impact of employees bullying
on Employees productivity.
Ho 2 The mean value is not significant with test value 3 for
Employee Productivity
Theoretical framework and Research Methodology
The study attempts to analyze the various aspects, where
Questionnaire, Validity, Reliability – Cronbach Alpha, was
calculated with the Statistical Tools (t -test) .A primary
survey was conducted to find out in depth insights of the
study. Survey was conducted in the Delhi and National
Capital Region area. Primary data of 210 Employee from
private companies was collected.
Research Design
The present research is descriptive in nature. It contains
descriptions of phenomena or characteristics associated
with the current subject population and basically answer
the questions who, what when where and how of the
topic. The study attempts to discover Employees’
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Prastuti: Vol. 5, No. 1, July 2016
S. No.
Name of the Company
Industry
1 HDFC Bank Banking
2 ICICI Bank Banking
3 ICICI Pru life Insurance
4 Max Life Insurance Insurance
Table 1.1 Companies chosen in the Study
responses for all the companies with respect to the
various aspects of Effect of Productivity. A snapshot of the
research design of the study is as follows:
1. Universe of the study: The study was
conducted among Employee of select
companies operating in Delhi NCR (National
Capital Region).
2. Sampling design: Judgmental Sampling design
where the judgment criteria were that the
respondent working in select companies only.
3. Sample Size: 210 respondents from banks and
insurance of Delhi-NCR
Frequency Percent Valid Percent
Delhi 45
21.4
21.4
Ghaziabad
35
16.7
16.7
Noida 30 14.3 14.3 Faridabad
45
21.4
21.4
Gurgaon
55
26.2
26.2
Total 210 100.0 100.0
Table 1.2: Sample Size and Distribution
Table1.2 presents the location of the respondents. The
location is divided into 5 different areas. All these areas
belong to the National Capital Region including the
national capital Delhi itself. The other areas of National
capital region are Ghaziabad, Noida, Faridabad and
Gurgaon.
It is observed from the above mentioned table that the
respondents are nicely distributed all around all the
locations and truly represents the national capital region.
There are 21.4% respondents from Delhi. Ghaziabad
being the second biggest district then the other parts of
NCR has the16.7 %of the total respondents, Noida 14.3 %
of the total respondents, Faridabad 21.4% and Gurgaon
26.2.
• Data Collection Tool: Structured Questionnaire
• Sources of Primary Data: Survey of Employees in
Delhi and NCR
• Sources of Secondary Data:
a. Journals and Articles.
b. PhD thesis.
c. Books, magazines, newspapers and periodicals.
d. Published interactions with Employee
e. Other relevant websites
Data analysis tools: Mean, Standard Deviation, T- Test
and Anova
Scaling and Questions type in Questionnaire Design:
• Interval Scale: Interval scale incorporates the
concept of equality of intervals. The same has
been used in many questions to provide a
strong scaling to the questionnaire.
Test of Reliability
Reliability assesses the similarity of results provided by
compare the measures of the same objects or construct.
The similarities of results are provided by independent
but comparable are measures of the same object or
construct is called reliability. As we know Reliability is an
index of consistency. The test of reliability has been done
for all the questions (wherever applicable). For applying
the test of reliability the value of Cronbach’s Alpha has
been calculated. A value more than 0.5 of Cronbach's
Alpha is considered as good for reliability. In the present
study, the values of Cronbach’s Alpha have been
calculated in the given table given ahead for all the
statements.
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Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR
Cronbach's Alpha Number of Items
.695 14
Table 1.3. Reliability Statistics
It may be observed from table from the above table that
the data scale was reliable as the value of Cronbach’s
Alpha is more than .5.
D e m o g r a p h i c P r o f i l e o f t h e Respondents: The respondents have a mixed profile in the present study
and they are the true representatives as well.
Statistical Techniques for Data Analysis
For the purpose of analysis the following statistical tools
have been used:
Mean
Weighted mean has been used to analyse the questions of
likert scale where the number of responses are multiplied
by the respective weight. Mean has been applied to find
out the mean score and to find out the priorities of
variables. A weighted means has been used to analyze the
responses in Interval Scale Likert scale.
Standard Deviation
The standard deviation measures the absolute dispersion
for variability of distribution, the greater the amount of
dispersion or variability, the greater the standard
deviation, for greater will be the magnitude of the
deviations of the values from their mean. A small or less
value standard deviation means a high degree of
uniformity of observations as well as homogeneity of a
series; a large or more standard deviation means just the
opposite. In the present study standard deviation has
been used almost at all the places where Mean and t-test
has been used to know the variability of the responses
(ibid).
One Sample t-test
The one sample t-test is used when we have data from a
single sample of participants and we wish to know
whether the mean of the population from which the
sample is drawn is the same as the hypothesized mean
(Coakes et. al. 2006). One sample t test is used to analyze
whether a single sample of scores is likely to have been
drawn from a hypothesized population. An independent
group t-test appropriate when different respondents
have performed in each of the different conditions, in
other words when the respondents in one condition are
different from the participants in the other condition. This
is commonly referred to as a between subjects design and
when the researcher determines whether the difference
between means for the two sets of scores is significant
and analysis will based on weighted mean.
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Weight Scale Verbal Interpretation
4.50 above 5 Strongly Agree
3.50-4.49 4 Agree 2.50-3.49 3 Neutral 1.50-2.49 2 Disagree below 1.50 1 Strongly Disagree
Analysis of Employee Productivity
Descriptive statistics
Mean value of the below is 2.23 out of 5. It is presented in
the Third and fourth column where 1 is for strongly
disagree and 5 is for strongly agree. It means that lower
the agreement higher the value of scale anchor and vice
versa. Same will apply on the mean value also. A lower
mean value will represent a higher agreement and a
higher mean value will represent a lower agreement. For
the present statement the mean value is 2.23 which is less
than the neutral value of scale viz. 3. Hence it may be
concluded that the respondents are moving towards
disagreement side of the scale for the given statements.
Consolidate Mean of Employee Productivity:
It is observed from above table that respondents have
very high agreement with the ninth statement. Hence it
may be concluded that the respondents find perform
better even when they not bothered if they are being
ignored. (Mean value 3.30).
Testing of Hypothesis:
The statements given in the questionnaire were
converted as the null hypothesis. Null Hypothesis is an
assumption or a statement where no relationship/
association / Effect etc. is assumed between the variables.
The statements related to Productivity are converted as
null hypothesis
To test the significance of the responses with respect
to the statement student’s t-test has been applied. Table
presents the results of one sample t-test. It is observed
from the column Significance (2 tailed) that the value is
.000 for majority statements. These values of Sig. (2
tailed) in all the columns are below .05, the critical value
of ‘p’, hence all of the null hypotheses have been rejected.
To conclude the results of the table 1.6, it can be said that
all hypothesis get rejected as the value in Sig. (2 tailed is
below .05), it means there is significance difference of
workplace bullying on employees productivity.
As The present study is analytical in nature so for testing
the hypothesis with respect to Gender and Various Age
groups ANOVA have been applied.
Table 1.7 shows that highest 58 respondents i.e 27.6
percent are belong to the age group of 30-40 years, 45
respondents i.e. 21.4 percent from the age group of 20-30
years, 14.8percent i.e. 31 respondents from the age group
of 40-50 , 34 respondents i.e 16.2 percent from the age
group above 60 where as 16.2 percent i.e. 34
respondents from the age group above 60 and very few
respondents 8.6 percent i.e. 18 respondents from the age
below 20 years.
51
Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR
Does not affect the performance when
SD D N A SA MEAN STD.DEV
f
%
f
%
f
%
f
%
f
%
1 Being insulted and neglected at the work place
105
100
75
50.
14
14.3
8
3.8
8 3.8
1.75
1.00
2 Under estimating me.
56
26.7
87
41.4
39
18.6
17
8.1
11
5.2
2.23
1.04
3 Allotted unproductive work
68
32.4
95
45.2
23
11.0
17
8.1
7 3.3
2.04
1.05
4 Criticize behind the back
89
42.4
84
40.0
24
11.4
8
3.8
5 2.4
1.89
.87
5 Passing indirect comments
83
39.5
76
36.2
23
11.0
13
6.2
15
7.1 2.05
1.39
6 Send signals that I am not valuable employee 95 45.2 68 32.4 25 11.9 13 6.2 9 4.3 1.91 1.19
7 Repeated reminders of mistakes 86 41.0 45 21.1 42 20.1 27 13.0 10 4.8 2.19 1.51
8 Excessive monitoring on activities 88 41.0 60 28.1 35 16.7 15 7.1 12 5.7 2.06 1.38
9 Allotted unmanageable work
88
41.9
60
28.6
35
16.7
15
7.1
12
5.7 2.06
1.38
10 Ignore the presence
75
35.7
64
30.5
25
11.9
17
8.1
29
13.8
2.33 1.92
11 Indirect pressure of
not to claim something which entitled to.
170
81.0
25
11.8
10
4.8
4
1.9
1 0.5
1.29
.47
12 Withholding information
95
45.2
40
19.0
33
15.7
40
19.0
2
1.0
2.11
1.44
13 Lack of supervision
105
50
31
14.8
42
20.0
26
12.4
6
2.9
2.03
1.45
14 Lack of top management involvement in professional growth
93
44.3
72
34.3
19
9.0
25
11.9
1
0.5
1.90
1.04
Table 1.5 Responses of the respondent related to bullying (n=210)
52
Prastuti: Vol. 5, No. 1, July 2016
Test Value = 3
Tested at 95% confidence level/ 5% significance level
Null Hypotheses
t
Sig. (2 -
tailed)
Result of
Null Hypothesis
Being insulted and neglected at the work place does not ha ve an effect on work place productivity.
17.58
.000
Rejected
Under estimating me does
not have an effect on work place productivity.
10.54
.000
Rejected
Allotted unproductive work
does not have an effect on work place productivity.
13.08
.000
Rejected
Criticize behind the back
does not have an effect on work place productivity.
19.16
.000
Rejected
Passing indirect comments does not have an effect on work place productivity.
9.86
.000
Rejected
Send signals that I am not valuable employee do not have a n effect on work place productivity.
13.07
.000
Rejected
Repeated reminders of mistakes does not have an effect on work place productivity. 7.73 .000 Rejected
Excessive monitoring on activities does not have an effect on work place productivity.
9.83 .000 Rejected
Allotted unmanageable work does not have an effect on work place productivity.
9.83
.000
Rejected
Ignore the presence does not have an effect on work place productivity.
4.97
.000
Rejected
Indirect pressure
of
not to claim something whi ch entitled to does not have an effect on work place productivity.
52.4
.000
Rejected
Withholding information does not have an effect on work place productivity.
8.88
.000
Rejected
Lack of supervision does not have an effect on work place productivity.
9.65
.000
Rejected
Lack of top management involvement in professional growth does not have an effect on work place productivity. 15.2 .000 Rejected
Table 1.6 One-Sample Tests for Convenience
* Hence the results are similar to accepting a null hypothesis.
53
Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR
Frequency Percent Valid Percent Cumulative
Percent
Valid
BELOW 20
18
8.6
8.6
8.6
20-30
45
21.4
21.4
30.0
30-40 58 27.6 27.6 57.6
40-50
31
14.8
14.8
72.4
50-60
24
11.4
11.4
83.8
ABOVE 60
34
16.2
16.2
100.0
Total 210 100.0 100.0
Table 1.7 AGE wise Categories of the Respondents
Frequency Percent Valid Percent Cumulative
Percent
Valid
MALE 144 68.6 68.6 68.6
FEMALE
66
31.4
31.4
100.0
Total
210
100.
100.0
Table 1.8 GENDER wise Categories of the Respondents
Table 1.8 highlights that the highest number of
respondents i.e. 144 out of 210 are male such as 68.6
percent and remaining 31.4 percent are female i.e. 66 out
of 210.
Table 1.9 highlights the relationship between age and
workplace productivity of the respondents in private
organizations. The ANOVA result at 5 % of significant level
shows that there is significant difference found as we
reject the hypothesis. It is found that the employee’s
productivity are getting affected by workplace bullying.
Table shows that the relationship between gender and
workplace productivity of the respondent in private
sectors. The Anova result 5% of significance level, it found
that the employees are getting affected by workplace
bullying and shows that there is no significant difference
found in the in the various gender group of the
respondents like being insulted and neglected, Criticizing
behind the back, Allotment of unmanageable work,
Ignoring the presence, Lack of top management
involvement in professional growth. But there is
significant difference like under estimating, allotted
unproductive work, passing indirect comments, Sending
signals that I am not valuable employee, repeated
reminders of mistakes, Indirect pressure not to claim
something which entitled to, Withholding information,
Lack of supervision.
Finding
It is found that the employees of insurance and banking
sector are getting affected by workplace bullying on the
various age groups and similarly on the basis of gender
group, it is found that majorly the employees’
productivity get affected. The most important reasons are
sending signals that employees are not valuable, being
insulted and neglected at the work place, indirectly
pressurize not to claim something which they entitled for,
lack of top management involvement in professional
growth of an employee.
54
Prastuti: Vol. 5, No. 1, July 2016
Suggestion & Recommendations
Private organization should make strongly policies for
workplace bullying and simultaneously take some
measures for excessive working hours, improving working
culture, evenly distribute the responsibilities on the
shoulders of the employees ,form a culture of give respect
and take respect, efforts for doing a particular task must
be valued by giving appreciation and recognition , reward
for their hard work, supervisor is responsible for healthy
environment ,it builds healthy relationship in an
organizations .
Future implications
This study could be helpful for the top level management
of private organizations which help to retain and motivate
the efficient employees taking into account in different
parameters mentioned in the above study.
References
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bullying on employee performance in the public
sector ,ASIAN JOURNAL OF MANAGEMENT
RESEARCH ,Online Open Access publishing platform
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277-289.
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Review of the Defining Features, Measurement
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Kozhikode Society & Management Review 4(1)
38–47 © 2015 Indian Institute of Management
Kozhikode SAGE Publications, sagepub.in /
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• EFFECTS OF BULLYING, Marlon de Lara,Cedric D Jale
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Criminology,Nueva Ecija University of Science and
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• Agervold, M., & Mikkelsen, E.G. (2004). Relationship
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violence and workplace aggression: Evidence on
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bullying. Journal of Psychosomatic Research, 70(1),
37–43. doi: 10.1016/j. jpsychores.2010.06.007.
• Yildrim, D. (2009). Bullying among nurses and its
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• Prevalence and forms of workplace bullying among
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S.no Parameters F-value Sig.
1 Work place productivity affected by being insulted and neglected.
5.467
.000
2 Work place productivity affected by Under estimating.
36.143
.000
3 Work place productivity affected by Allotted unproductive work.
28.688
.000
4 Work place productivity affected by Criticizing behind the back.
4.828
.000
5 Work place productivity affected by Passing indirect comments.
10.088
.000
6 Work place productivity affected by Sending signals that I am not valuable employee. 4.919
.000
7 Work place productivity affected by Repeated reminders of mistakes. 7.421 .000
8 Work place productivity affected by Excessive monitoring on activities. 2.689 .022
9 Work place productivity affected by Allotment of unmanageable work.
41.202 .000 10 Work place productivity affected by Ignoring the presence.
9.740
.000 11 Work place productivity affected by Indirect pressure not to claim
something which entitled to.
22.262
.000 12 Work place productivity affected by Withholding information.
18.637
.000
13 Work place productivity affected by Lack of supervision
16.788
.000
14 Work place productivity affected by Lack of top management involvement in professional growth. 15.239 .000
Table 1.9 Relationship Between age and work place bullying effects
S.no Parameters F-value Sig.
1 Work place productivity affected by being insulted and neglected.
3.441
.065
2 Work place productivity affected by Under estimating.
22.907
.000
3 Work place productivity affected by Allotted unproductive work.
19.701
.000
4 Work place productivity affected by Criticizing behind the back.
3.554
.061
5 Work place productivity affected by
Passing indirect comments.
9.701
.002
6 Work place productivity affected by Sending signals that I am not valuable employee. 12.419
.001
7 Work place productivity affected by Repeated reminders of mistakes. 31.708 .000
8 Work place productivity affected by Excessive monitoring on activities. 2.898 .090
9 Work place productivity affected by Allotment of unmanageable work.
3.045 .082 10 Work place productivity affected by Ignoring the presence.
1.152
.284 11 Work place productivity affected by Indirect pressure not to claim
something which entitled to.
4.786
.030 12 Work place productivity affected by Withholding information.
15.539
.000
13 Work place productivity affected by Lack of supervision
7.137
.008
14 Work place productivity affected by Lack of top management involvement in professional growth. 1.067 .303
Table 2.0 Relationship Between Gender and work place bullying effects
55
Effect of Workplace Bullying on Employees Productivity in the Private Organizations with special Reference to Delhi & NCR
In recent past most significant social transformation in India has been the increase in dual earning couples. Therefore the objective of the present research was to identify the gender role ideology prevalent in single and dual earning couples. To assess the gender role ideology a self constructed tool was filled by 48 couples from single earning families and 46 couples from dual earning families. The results depict that 75% males from single earner families and 67.39% males from dual earner families were having traditional gender ideology. Males were more stereotyped rather than females in single (t=5.61) as well as dual earning families (t=5.83). Majority of males and females, who were having traditional gender ideology, responded more on traditional perception (52.78%, 67.74%) for its justification. There is a significant difference in attitude of females of single earning families and dual earning families. It is evident from t value (6.06) that females of single earner families were more stereotyped in comparison to females of dual earner families. Females of dual earner families want more sharing of roles and responsibilities (54.35%) than their counterparts (32.61%). Females having egalitarian gender ideology justified it on the basis of equal division of labour. It shows that gender role perception is showing greater changes in dual earning families. Although the change is very slow but the change is occurring.
Keywords: Single earning families, Dual earning families, Gender role ideology.
Assessment of Traditional andEgalitarian Gender Role Ideology amongSingle and Dual Earning Families
Abstract
Introduction
In the recent past, the most significant social
transformation in India has been the increase in dual-
earning families. The families where husband and wife
both are doing earning activities and man is not only the
bread winner but female also works as second bread
winner are considered as dual earning families. On the
other hand, "traditional family" structure in which
mothers are the caregivers and fathers are the income
earners is known as single earning families. With
continuous changes occurring in the society like women
influx in the workforce, it becomes imperative to assess
the gender role ideology existing among single and dual
earning couples.
The term gender role denotes a set of behavioral norms.
Gender role ideology refers to attitudes regarding the
appropriate roles, rights, and responsibilities of women
and men in society. Such attitudes typically range along a
continuum from traditional to nontraditional.
Traditional gender ideologies emphasize the value of
distinctive roles for women and men. According to
traditional gender ideology, man plays the role of
provider while woman plays the role of caretaker in
family. Egalitarian ideologies, by contrast, endorse and
value men's and women's equal and shared
breadwinning and nurturant family roles.
Gender roles can be a source of satisfaction and also of
tension (Barnett, 2001). The unequal division of both
household labor and childcare, with women doing the
bulk of the work, is thought to contribute to the reported
lower marital satisfaction for women. Therefore the
present study was conducted to identify the existing
gender role ideology in single earning and dual earning
couples.
Dr. Neha Saxena*
* Lecturer, Department of Human Development and Family Studies, Institute of Home Science, Khandari, Agra.
56
Objectives of the Study
The objectives which were undertaken for the research
were as follows:
1. To study the gender role ideology of males and
females of single earning couples.
2. To study the gender role ideology of males and
females of dual earning couples.
Sample
Forty eight couples from single earning families and forty
six couples from dual earning families ageing between 25-
45 years were purposively selected from Agra city by
using multistage stratified sampling method. The
important criterion for selection of the subjects was that
families must be nuclear in nature and should not have a
full time servant.
Tool
A self prepared Gender Role Perception Scale was used to
assess perception of husband and wife for gender role
ideology. Total 12 items were designed to achieve the
objective. This scale was filled up by husband and wife
separately. In this scale three point scale has been used. A
score of 1 was assigned when male respondent
responded on male option for male stereotype and 2 was
given for responding on female or either for male
stereotypes. Similarly, 1 was given for female respondent
when she responded on female option for female
stereotypes and 2 was assigned for responding on male or
either option for female stereotypes.
Results
The table 1 shows that 79.17% males and 66.67% females
of single earner families think that responsibility of
arranging money for fulfillment of essential needs should
be performed by only male. About 96% males and 79.17%
females of single earner families think that security of
family members should be a duty of males. Majority of
males and females replied that being a head of the family
is a role of man, as the figures show (87.50% and 72.92%
respectively). Similarly pattern was found for other
responsibilities also. Thus the results showed that most of
the male and females of single earning families were
having traditional gender role ideology. However, in all
these roles and responsibilities females have always a
higher willingness to do role swapping rather than males.
It is clear from the table 2 that majority of males from
single earner families think that household tasks like
cleaning of the house, cooking and child rearing should be
done only by females, as evident from the results
(95.83%, 87.50%, and 85.42% respectively). Most of the
males believe that females should be responsible for
caretaking of parents and family members. Interestingly
62.5% males think that guidance to the child should be
given by both the partners. Similarly, females also think
that roles of females should be done only by females as
they can perform them easily and effectively which shows
their traditional gender role ideology.
57
Assessment of Traditional and Egalitarian Gender Role Ideology among Single and Dual Earning Families
S. No.
Roles and Responsibilities
Single Earner Couples
Male
Female
M F E M F E
N % N % N % N % N % N %
1 Earning 38 79.17 0 0.00 10 20.83 32 66.67 1 2.08 15 31.25
2 Providing security 46 95.83 0 0.00 2 4.17 38 79.17 1 2.08 9 18.75
3 Head of the family 42 87.50 0 0.00 6 12.50 35 72.92 1 2.08 12 25.00
4 Taking major Decision 34 70.83 0 0.00 14 29.17 30 62.50 2 4.17 16 33.33 5 Organizing ceremonies 36 75.00 2 4.17 10 20.83 33 68.75 4 8.33 11 22.92 6
Documentation
33
68.75
3
6.25
12
25.00
29 60.42
2
4.17
17
35.42
Table 1: Responses of Single Earner Couples on Male Gender Role Ideology
The table 3 shows that 52.12% of males and 60.87%
females of dual earning families want sharing of the major
role, i.e. arranging money for the fulfillment of needs
showing egalitarian gender role ideology. However, most
of the males and females of dual earning families feel that
being head of the family (73.91%) and providing security
to family members (67.39% and 69.57% respectively) is
the responsibility of males. While comparing males and
females of dual earning families on taking major
decisions, organizing ceremonies and documentation, it
was found that willingness for gender role swapping was
higher in females (63.04%, 60.87% and 50.00%) rather
than males (23.91%, 26.09% and 28.26%).
The table 4 shows that majority of males (80.43%,
73.91%, and 82.61% respectively) as well as females
(82.61%, 80.43%, and 78.26% respectively) from dual
earning families think that household tasks like cleaning
of the house, cooking and child rearing should be done
only by females. It was interesting to note that 56.52%
males think that guidance to the child should be given by
both the partners but 45.65% females perceive it as their
responsibility.
The table 5 shows the percentage of males and females
having traditional and egalitarian gender ideology. The
table depicts that 75% males of single earner families
were having traditional gender ideology, while only 25%
males of single earner families were having egalitarian
gender ideology. It was interesting to know that females
of single earner families were less stereotyped (68.75%)
than males (75%). Females of single earner families want
more sharing of roles and responsibilities (31.25%) rather
than males (25%).
Similarly, 67.39% males of dual earner families were
having traditional gender ideology, while only 32.61%
males of dual earner families were having egalitarian
gender ideology. Again, it was quite interesting to note
that females of dual earner families were less stereotyped
58
Prastuti: Vol. 5, No. 1, July 2016
S. No
.
Roles and
Responsibilities
Single Earner Couples
Male
Female
M F E M F E
N % N % N % N % N % N %
1 Cleaning of house 0 0.00 46 95.83 2 4.17 1 2.08 44 91.67 3 6.25
2 Cooking 0 0.00 42 87.50 6 12.50 1 2.08 41 85.42 6 12.50
3 Child rearing 0 0.00 41 85.42 7 14.58 1 2.08 42 87.50 5 10.42
4Caring family
members 3 6.25 34 70.83 11 22.92 5 10.42 36 75.00 7 14.58
5 Caring Parents
4
8.33
36
75.00
8
16.67
4
8.33
37
77.08 7
14.58
6 Child Guidance
7
14.58
11
22.92
30
62.50
8
16.67
31
64.58 9
18.75
Table 2: Responses of Single Earner Couples on Female Gender Role Ideology
S. No
.
Roles and
Responsibilities
Dual Earner Couples
Male
Female
M F E M F E
N % N % N % N % N % N %
1 Earning 22 47.83 0 0.00 24 52.17 18 39.13 0 0.00 28 60.87
2 Providing security 31 67.39 0 0.00 15 32.61 32 69.57 0 0.00 14 30.43
3 Head of the family 34 73.91 0 0.00 12 26.09 34 73.91 0 0.00 12 26.09
4 Taking major Decision 31 67.39 4 8.70 11 23.91 16 34.78 1 2.17 29 63.04
5 Organizing ceremonies 32 69.57 2 4.35 12 26.09 15 32.61 3 6.52 28 60.87
6 Documentation
30
65.22
3
6.52
13
28.26
19
41.30 4
8.70
23
50.00
Table 3: Responses of Dual Earner Couples on Male Gender Role Ideology
(45.65%) than males (67.39%). Females of dual earner
families want more sharing of roles and responsibilities
(54.35%) than their counterparts (32.61%). In total, males
(71.28%) were more having traditional gender role
ideology in comparison to females (57.45%).
The table 6 shows that males of single and dual earning
families, who were having traditional gender ideology,
responded more on traditional perception (52.78%,
67.74%) for its justification. Working ability stood second
as the reason for having traditional gender ideology, as
25% and16.13% males have given this reason for having
such kind of attitude. Again among the females of single
and dual earning families (75.76%, 67.74%) responded
more on traditional perception for having traditional
gender ideology. Interestingly, 14.29% females in dual
earning families were having traditional gender ideology
just because of their self motivation.
The table 7 shows that males of single and dual earning
families had egalitarian gender ideology because of self
motivation (41.7%, 53.3%). It was interesting to note that
33.3% males of single and dual earning families think that
there should be a equal division of labour, while 25%
males of single earning families and 6.7% males of dual
earning families think that females are also educated so
there should be a sharing of responsibilities. On the other
side, females of single and dual earning families had
egalitarian gender ideology (53.3%, 60%) which was
justified on the grounds of equal division of labour. Again,
26.7% females of single earning families and 24% females
of dual earning families were self motivated behind
egalitarian gender ideology. In total, males and females
showed the similar trends.
59
Assessment of Traditional and Egalitarian Gender Role Ideology among Single and Dual Earning Families
S. No
.
Roles and
Responsibilities
Dual Earner Couples
Male
Female
M F E M F E
N % N % N % N % N % N %
1 Cleaning of house 0 0.00 37 80.43 9 19.57 0 0.00 38 82.61 8 17.39
2 Cooking 0 0.00 34 73.91 12 26.09 0 0.00 37 80.43 9 19.57
3 Child rearing 0 0.00 38 82.61 8 17.39 0 0.00 36 78.26 10 21.74
4Caring family
members 3 6.52 31 67.39 12 26.09 7 15.22 28 60.87 11 23.91
5 Care of Parents 5 10.87 33 71.74 8 17.39 5 10.87 24 52.17 17 36.96
6 Child Guidance
11
23.91
9
19.57
26
56.52
7
15.22
21
45.65 18
39.13
Table 4: Responses of Dual Earner Couples on Female Gender Role Ideology
S. No
.
Gender Ideology
Single Earner Couples Dual Earner Couples Total
Male Female Male Female Male Female
N % N % N % N % N % N %
1 Traditional (12-16) 36 75 33 68.75 31 67.39 21 45.65 67 71.28 54 57.45
2 Egalitarian (17-22) 12 25 15 31.25 15 32.61 25 54.35 27 28.72 40 42.55
Table 5: The Percentage of Males and Females of Single Earning Families and Dual EarningFamilies having Traditional and Egalitarian Gender Role Ideology
60
Prastuti: Vol. 5, No. 1, July 2016
Table 6: The Percentage Responses of Single Earner Couples and Dual Earner Couples forthe Reason of having Traditional Gender Role Ideology
S. No
.
Reason
Traditional Gender Ideology
Single Earner Couples
Dual Earner Couples
Total
Male Female Male Female Male Female
N % N % N % N % N % N %
1 Traditional Perception 19 52.78 25 75.76 21 67.74 16 76.19 40 59.70 41 75.93
2 Education 4 11.11 2 6.06 3 9.68 1 4.76 7 10.45 3 5.56
3 Working ability 9 25.00 1 3.03 5 16.13 1 4.76 14 20.90 2 3.70
4 Equal division of labour 1 2.78 3 9.09 0 0.00 0 0.00 1 1.49 3 5.56
5 Self motivation
3
8.33
2
6.06
2
6.45
3
14.29 5
7.46
5
9.26
S. No
.
Reason
Egalitarian Gender Ideology
Single Earner Couples Dual Earner Couples Total
Male Female Male Female Male Female
N % N % N % N % N % N %
1 Traditional Perception 0 0 0 0 1 6.7 0 0 1 3.7 0 0
2 Education 3 25.0 2 13.3 1 6.7 3 12 4 14.8 5 12.5
3 Working ability 0 0.00 1 6.7 0 0.00 1 4 0 0 2 5
4 Equal Division of labour 4 33.3 8 53.3 5 33.3 15 60 9 33 23 57.5
5 Self motivation 5 41.7 4 26.7 8 53.3 6 24 13 48.2 10 25
Table 7: The Percentage Responses of Single Earner Couples and Dual Earner Couples forthe Reason of having Egalitarian Gender Role Ideology
Working Status Gender Mean SD t p
Single Earner Couples Male 13.44 3.45
5.61 .01 Female 16.82 2.35
Dual Earner Couples Male 14.82 2.98
5.83 .01 Female 20.26 3.09
Total Male 14.12 4.16
7.12 .01 Female 18.5 4.27
Table 8: The Mean, SD and t values of Gender Role Perception in Single and Dual Earner Couples
Gender Working Status Mean SD t p
Male SEF 13.44 3.45
2.08 NS DEF 14.82 2.98
Female SEF 16.82 2.35 6.06 .01 DEF 20.26 3.09
Table 8 shows that males were more stereotyped rather than females in single (t=5.61) as well as dual earning families (t=5.83). In case of total males and females, the similar trend was seen. While comparing males of single earner families and dual earner families, the scores were about to same. The t value (2.08) also shows that there was no significant difference in gender role perception of males of single earning families and dual earning families. It is interesting to know that there is a significant difference in attitude of females of single earning families and dual earning families. Females of single earner families were more stereotyped (16.82) in comparison to females of dual earner families (20.26). The t value (6.06) also shows the same.
Discussion
Perhaps the reason behind having traditional gender role ideology was typical traditional belief that male’s role is instrumental, while role of female is expressive. Besides this women are by nature caring, nurturing, giving and sacrificing. This can be a big cause of maintenance of traditional gender role ideology among female respondents. For women who have not entered the work force it may be reasoned that getting and pursuing a job is not an easy task therefore females use safe guarding techniques (Adler, 1956) by saying that I did not want to take up a job and have therefore stressed that the role of provider be performed by males only.
Lower level of swapping among male respondents can be explained on the basis two reasons. Firstly, it is more convenient for the man to come home and watch TV rather than enter the kitchen. Then why should he take the additional responsibility when societal demands do not require him to do so. Secondly, in some cases he may not be so strong willed to be able walk against the wind. That is to say he is unable to challenge societal norms.
Feldman (2000) have also found that since the 1970s, the gender role attitudes of both men and women have become less traditional. Gender schema theory (Kaufman, 2000) also supports the fact as it says that gender schema of person is accumulated according to the experience. Perhaps the dual earning couples have assimilated the changed circumstantial requirement and have accommodated by adaptation. Again it would be wrong to say that all dual earning couples have undergone this transition. No wonder the perceptual change has occurred in only a segment of sample.
It was very interesting to note that females have always more willingness to do swapping rather than males because swapping will ease the strain of women
and not the man. Males of dual earning families were more in favour of swapping rather than males of single earning families. Similarly females of dual earning families were found more willing for gender role swapping in comparison to females of single earning families. The reason behind this finding is that dual earning couples have to perform all the roles and responsibility in the limited time therefore they use sharing technique as a coping mechanism. They understand that call of the day is to work together and share responsibility for living a healthy life.
Conclusion
In conclusion, it can be said that most of the males and females have traditional gender role ideology, but the shift toward egalitarian gender role ideology is occurring gradually. Perception of dual earner couples is changing more rapidly than single earner couples. It is becoming vital that rather than blaming each other for the situation, men and women should be increasingly willing to work together to learn about their new roles. Successful marriage partners are the ones who learn to negotiate and share tasks. Household work can become lot more exciting, innovative and experimented if both gender do not show case the jobs in water tight compartment based on traditions.
References
• Barnett, R.C., & Hyde, J.S. (2001). “Women, men, work and family: An expansionist theory”. American Psychologist. pp 781-796.
• Blanco G. & Feldman L. (2000). “Home-making responsibilities and health of working women”, Universidad Central, Caracas, Venezuela, Salud Publica Mex. Vol 42(3). pp 217-225.
• Friedman S.D. & Greenhause J.H. (2000). “Work and family – Allies or enemies?” New York: Oxford University Press, 2000.
• Kaufman G. (2000). “Do Gender Role Attitudes Matter?: Family Formation and Dissolution Among Traditional and Egalitarian Men and Women”. Journal of Family Issues. vol 21(1). pp 128 – 144.
• Pasley K., Kerpelman J., and Guilbert D.E. (2001). “Gendered Conflict, Identity Disruption, and Marital Instability: Expanding Gottman's Model”. Journal of Social and Personal Relationships. Vol 18(1). pp 5 – 27.
• Raj A. (2004). “Changing Gender Roles”. Journal of Comparative Family Studies, Vol.35.
• Stoeva, A. Z., Chui, R. K. and Greenhaus, J. H. (2002). “Negative affectivity, role stress, and work-family conflict”. Journal of Vocational Behaviour. pp 1-16.
61
Assessment of Traditional and Egalitarian Gender Role Ideology among Single and Dual Earning Families
The main aim of the current study was to examine the effect of emotional intelligence on talent retention through employee engagement. As talent retention is an outcome of employee engagement hence its worth to study it in relation to engagement. Data was gathered from 100 respondents of IT sector using random sampling. .The study used a self administered questionnaire to collect the primary data. Participant completed two surveys: (1) Emotional Intelligence Appraisal (Bradberry and Greaves , 2003), which measures (a) self–awareness, (b) self–management,(c) social awareness, (d) relationship management, and (e) overall emotional intelligence; and (2) Employee engagement questionnaire (Schaufeli et al., 2006) which assess employees engagement . The results were in the expected direction and fulfilled the research aims of the current study. The statistic results revealed that there is a significant strong relationship between the two main variables of the study, namely EI and Employee engagement. Out of the four variables of Emotional intelligence social awareness and relationship management was found to have a positive and significant relationship with employee engagement. The present study indicated that a good level of engagement may lead to high employee retention.
Keywords: Emotional intelligence, Employee engagement, Self awareness, Self management, Social awareness, Relationship management, Retention.
Emotional Intelligence andEmployee Engagement: Key to Retention
Abstract
Introduction
With increase in globalization and competitiveness,
retaining employees is becoming a very difficult
challenge. In today’s uncertain environment,
organization’s success depends on its ability to recruit,
employ and retain skilled employees. Competition and
the lack of availability of highly talented and skilled
employees make finding and retaining talented
employees’ major priorities for organizations (Fegley,
2006).
In order to attract and retain the best talent anywhere in
the world, an organization must have the engaged
workforce. Engaged employees are those who work to
promote the organization by performing above and
beyond of what they are expected to do, even when the
conditions in which they work becomes unfavorable.
Since human asset plays a vital role in achieving success,
researchers are seeking for appropriate managerial ways
to rise up the level of employees’ engagement. Today’s
organizations demands high emotionally intelligent
managers who could effectively understand their own
emotions and those of others. According to Rosete and
Ciarrochi (2005), managers who rate higher in EI are in a
better position to develop effective and long lasting
relationships with other groups. So, emotional
intelligence is one of the key determinants of success in
leading people in business.
In this study we hypothesized that the more emotional
intelligent the manager was, the more likely the
employees would be to demonstrate the behavior that
define employee engagement. The finding of this
research is discussed for building talent retention which
is an outcome of employee engagement.
Priyanka Jain *Dr. (Prof) Taranjeet Duggal**
* Research Scholar, Amity University** Professor, Amity University
62
Emotional Intelligence
The construct of Emotional Intelligence (EI) is one of the
most frequently researched topics in organizational study
as it is a significant aspect in interpreting and analyzing
human behavior at work. The concept of emotional
intelligence evolved from the theory of social intelligence,
which involves the ability to understand and interact with
others. The term emotional intelligence was first used by
Salovey &Mayer (1990). According to Salovey & Mayer
emotional intelligence is defined as “the ability to
monitor one's own and others' feelings and emotions, to
discriminate among them and to use this information to
guide one's thinking and actions”. This term was later
popularized by Daniel Goleman’s book. “Why it matters
more than IQ”. To achieve the objectives of the
organization, a manager needs to understand their
employees’ feelings and emotions and build strong and
close relationships with them. Cherniss (2003) noted that
a leader who has a high level of emotional intelligence will
have a greater effect on an organization than a leader with
a low level of emotional intelligence.
In this research paper, emotional intelligence has been
discussed on the basis of four- component model of
Goleman. Hence it has been discussed with the help of
following dimensions:
• Self – awareness – Self awareness is being
conscious of one’s emotions and how they
affect thoughts and behavior.
• Self – management- It is the ability to control
impulsive feelings and behaviors, taking
initiative and managing emotions.
• Social awareness – social awareness is
understanding the emotions and concerns of
other‘s people and recognizing the power of
dynamics in a group or organization.
• Relationship management- It is all about
knowing how to develop and maintain good
relationships
Employee Engagement
The concept of employee engagement is relatively recent.
The term “employee engagement” first formally
appeared in academic literature in 2002 (Harter et al.,
2002), defined as “the individual’s involvement and
satisfaction as well as enthusiasm for work” (p. 269). The
literature concerning employee engagement poses a
challenge due to the fact that there is no one universally
applied definition to cover the topic of employee
engagement. For example, Saks (2006) defined
engagement as ‘‘the degree to which an individual is
attentive and absorbed in the performance of their roles’’
(p. 602). Harter et al. (2002) defined employee
engagement as an ‘‘individual’s involvement and
satisfaction with as well as enthusiasm for work’’ (p. 269).
Macey & Schneier, 2008 defined it as the positive feeling
that employees have towards job and also the motivation
and effort they put into it. Schaufeli and Bakker (2003)
defined engagement as a positive, fulfilling, work-related
state of mind characterized by vigor, dedication and
absorption. Finally, Kahn (1990) was accredited with
conceptualizing the term personal engagement which he
defines as ‘‘the harnessing of organization members’
selves to their work roles.’’ In examining these definitions
collectively, employee engagement would appear to be
an amalgamation of several, older I/O psychology
constructs such as organizational commitment,
organizational citizenship behaviors, and job satisfaction.
Many organizations believe that employee engagement is
a dominant source of competitive advantage and thus,
have been drawn to its reported ability to solve
challenging organizational problems such as increasing
workplace performance and productivity amid
widespread economic decline (Macey andSchneider,
2008; Macey et al., 2009). Engaged employees within an
organization provide a competitive advantage to
organizations, as explained by the resource-based view
(RBV) of the firm (Joo and Mclean, 2006), and hence there
is a need to continuously engage employees. Employee
engagement as a key to the retention of talent (one-of-a-
kind hire in 100 employees; Glen, 2006) is an area in which
the lead has been taken by practitioners (Parsley, 2006;
Baumruk et al., 2006; Woodruffe, 2005; Gallup
Management Journal, 2006; Bennett and Bell, 2004; Hay
Group, 2002).
63
Emotional Intelligence and Employee Engagement: Key to Retention
Employee Retention
Employee retention refers to the ability of an organization
to imbibe its employees. Retaining of employees is
critical to business success because it is necessary to
retain talented and high-rated performers and keep them
from getting poached to competitors. Cascio (2003)
describes retention as initiatives taken by management to
keep employees from leaving the organization, such as
rewarding employees for performing their jobs
effectively; ensuring harmonious working relations
between employees and managers; and maintaining a
safe, healthy work environment. Since low talent
retention produces a substantial drain on corporate
resources, leaders need to know which practices work
and what they should focus on to retain and motivate
their workforce. For instance, an employee engagement
strategy allows employees to be more connected and
involved with the organization. Romzek (1989) analyzed
that employees having higher involvement in their work
and organization have better relations with their families
and social environment which creates a psychological
attachment with the organization. Employees who are
satisfied have higher intentions of staying with an
organization, which results in decreased turnover
(Mobley et.al).
Emotional intelligence and employee engagement: Past research
Only a paucity of empirical research has been published
on the relationship between EI and engagement. Palmer,
B.R & Gignac, G (2012) conducted an empirical research
to find out the relationship between emotional
intelligence of managers and their employees level of
engagement. The findings revealed that EI of mangers
were positively correlated with employee engagement
scores. The study found that leaders with high EI were
found to have mostly engaged and nearly engaged
employees. Duran et al. (2010) examined the impact of EI
within employees as a personal resource that facilitates
employee engagement within themselves. Ravichandran
et.al (2011) conducted a study on 119 employees of IT
companies of Chennai to find out the relationship
between emotional intelligence and employee
engagement. The study found a significant association
between emotional intelligence and work engagement
behavior.
In light of the above, to our knowledge, there are very few
published research available on the possible association
between manager rated EI and subordinate self-rated
employee engagement. In order to fulfill this existing gap
this research paper aims to analyze the impact of
managers EI on employee engagement which in turn
improves the retention of employees.
Research Framework
In line with the view suggested in the literature, the study
formulated the research hypotheses as below
(i) H1: Self-awareness is a significant predictor of
employee engagement;
(ii) H2: Self-management is a significant predictor
of employee engagement;
(iii) H3: Social awareness is a significant predictor of
employee engagement,
(iv) H4: Relationship management is a significant
predictor of employee engagement.
Research Methodology
This section discusses sample size, data collection along
with suitable statistical test used for evaluating
hypotheses.
Figure 1: Research Framework
Dimensions of Emotional Intelligence
Self awareness Self
Management
Social
awareness
Relationship
Management
Employee
Engagement
Enhancing of Employee
Retention
64
Prastuti: Vol. 5, No. 1, July 2016
Sample and Data Collection
A total of 120 self-administered questionnaires were
distributed at managerial level. Against the targeted
sample of 120 questionnaires, 100 questionnaires have
been collected and analyzed. Exploratory study used a
sample of 100 managers to find out the relationship
between emotional intelligence and employees
engagement. The questionnaire were distributed to the
middle level managers to rate their own level of
engagement and supervisor’s level of emotional
intelligence.
Data Collection Instrument
In order to collect the data structured questionnaire was
designed. The entire questionnaire was divided into three
sections. The first section inquired about the
demographic information of the respondents. The second
focused on EI (Independent variables) and third section
focused on employee engagement (Dependent variable).
The Emotional Intelligence Appraisal developed by
Bradberry and Greaves (2003) measures 4 dimensions of
emotional intelligence including: (1) self–awareness, (2)
self–management, (3) social awareness, (4) relationship
management, and it provides as overall score for
emotional intelligence. Items target the existence of skills
reflective of the above components and are rated using a
six point frequency scale where 1 reflects “never”
exhibiting a behavior and 6 reflects “always” exhibiting a
behavior. The statistical validity indicates that the
reliabilities for the four components of Goleman’s
Emotional Quotient model, measured through the
Emotional Intelligence Appraisal, yield coefficient alpha’s
ranging from .79 to .90
Employee engagement was measured using the short
version of the Utrecht Work Engagement Scale (UWES)
(Schaufeli et al., 2006), using a seven-point Likert scale
(1Not probable; 7Most probable).
Findings
Descriptive Analysis
Respondents for the present study are 100 individuals
working in different IT Companies of Delhi /NCR of India.
From these individuals 65 respondents were male, while
the rest consisted of female respondents. Of the subjects,
only 23 percent were represented by the age of 25 and
less years old, while 38 percent came from 25-30 years of
age. On the other hand, 27.5 percent were from 35-40
years of age and 11.5 percent were above 40 years of age.
About 30 percent of the respondents completed their
education up to graduation followed by 49.5 percent of
post graduate respondents as compared to a smaller
number of respondents who pursued higher educations. .
While looking into the designation it was found that 38%
of respondents were managers, 54% of them were middle
level managers and 8% were of other designation. While
drawing the total experience profile of the respondents it
was seen that 50% of them had an experience of 2 to 5
years, followed by 42% with an experience of 5-10 years
and 8% with an experience of 10 to 15 years.
Multiple Regression Analysis � The Relationship between Emotional i n t e l l i g e n c e a n d E m p l o y e e Engagement
Table 1
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .573a
.329 .301 20.172
65
Emotional Intelligence and Employee Engagement: Key to Retention
a. Pred ic tors : (Constant ) , Re lat ionsh ip
Management, Social Awareness, Self
Management, Self Awareness
As the statistical results shown in table 1, regression
coefficient value on the relationship between Emotional
intelligence and Employee engagement is 0.573. This
shows a strong relationship between the variables. R² is
the square of the multiple correlation coefficients. It
indicates the proportion of the variance of the dependent
variable explained by the independent variable. The R
square is 0.329 which means that 32.9% percentage of
variation in independent variable is explained by the four
dimensions of emotional intelligence but 68.1 percent
remains unexplained.
a. Pred ic tors : (Constant ) , Re lat ionsh ip
Management, Social Awareness, Self
Management, Self Awareness
b. Dependent Variable: Employee Engagement
In the table 2, the result of the Anova showed that the F
ratio obtained (F is 11.634) and the model is significant at
.000.
a. Dependent Variable: Employee Engagement
The regression results in table 3 showed that social
awareness (β = 0.503, p< .05) and relationship
management (β = 0.511, p< .05) are significant
determinants of Employee engagement. While the other
two variables self awareness (β = 0.070, p>0.05) and self
management (β = -0.164, p>0.05) were found not to have
any influence on employee engagement. Thus the
hypothesis H3 and H4 are confirmed.
Discussion and Conclusion
This study is designed to gain an insight into the
development of employee engagement on the basis of
emotional intelligence competencies. It has been
proposed in the study that it is essential for the executives
of the present day business to possess high emotional
intelligence which have an impact on the employees’ level
of engagement. In this study, the EI of managers was
found to substantially correlate with direct report ratings
of employee engagement. The result indicates that out of
the four clusters, the highest scoring is for relationship
management followed by social awareness. It therefore
Table 2
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 18935.380 4 4733.845 11.634 .000a
Residual 38655.610 95 406.901
Total 57590.990 99
Table 3
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 30.031 8.183 3.670 .000
Self Awareness .070 .137 .045 .514 .608
Self Management
-.164
.169
-.084
-.971 .334
Social Awareness
.503
.083
.514
6.057 .000
Relationship Management .511 .243 .185 2.099 .038
66
Prastuti: Vol. 5, No. 1, July 2016
suggests that people who are more competent in social
awareness and relationship management could easily
pave the way for high employee engagement.
In our introduction, we posited that this information may
prove useful to those who are challenged with the task of
improving employee engagement for the purpose of
enhancing talent retention. Indeed the findings of this
investigation suggest that engagement and its outcomes
might increase from increasing the EI of an organization’s
management. Emotional intelligence of managers could
be increased either by providing learning and
development intervention to the mangers or by hiring
and promoting people into management roles that are
high in EI. The possible explanation for this finding might
be that managers high in EI may have an emotional impact
on their employees making them more engaged at work.
Emotionally intelligent leaders would be more acute in
sensing the emotional cues in their subordinates and
hence respond in an appropriate manner. They will be
able to create a favorable emotional climate within the
organization, which fosters positive attitudes which
affects employee engagement and their retention too.
References
• Baumruk, R., Gorman, B. Jr, Gorman, R.E. and Ingham, J. (2006), “Why managers are crucial to increasing engagement”, Strategic HR Review, Vol. 5 No. 2, pp. 24-7.
• Bennett, M. and Bell, A. (2004), Leadership & Talent in Asia, Wiley, Singapore.
• Bradberry T and Greaves J (2003). Emotional intelligence quick book: Everything you need to know, San Diego, CA: Talent Smart Inc.
• Cascio W F (2003), Managing Human Resources, McGraw-Hill, New York.
• Cherniss C (2003). The business case for emotional intelligence, The Consortium for Research on Emotional Intelligence in Organizations. Retrieved N o v e m b e r 8 , 2 0 0 3 , f r o m http://www.eiconsortium.org/research/business_case_for_ei.htm.
• Duran, M. A., Extremera, N., & Rey, L. (2010),“Analyzing the co ntribution of emotional intelligence and core self-evaluations as personal resources to employee engagement”, in Albrecht, S. (Ed.), Handbook of Employee Engagement: Perspectives, Research and Practice, Edward Algar, Northampton, Massachusetts, pp. 209-.217
• Fegley, S. (2006), 2006 Talent Management Survey Report, SHRM Research, Alexandria, VA
• Gallup Management Journal (2006), 12 January, available at: http://gmj.gallup.com.
• Glen, C. (2006), “Key skills retention and motivation: the war for talent still rages and retention is the high ground”, Industrial and Commercial Training, Vol. 38 No. 1, pp. 37-45.
• Joo, B.-K. (Brian) and Mclean, G.N. (2006), “Best employer studies: a conceptual model from a literature review and a case study”, Human Resource Development Review, Vol. 5 No. 2, pp. 228-57.
• Kahn, W.A. (1990), “An exercise of authority”, Organizational Behavior Teaching Review, Vol. 14 No. 2, pp. 28-42.
• Harter, J .K . , Schmidt , F.L . , Hayes, T. L . (2002),“Business unit level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis”,Journal of Applied Psychology, Vol. 87 No. 2, pp. 268-279.
• Macey, W. H., & Schneider, B. (2008), “The meaning of employee engagement”, Industrial and Organizational Psychology, Vol. 1, pp. 3-33.
• Mobley, W.H., Griffeth, R.W., Hand, H.H. and Meglino, B.M. (1979) “Review and conceptual analysis of the employee turnover process”, Psychological Bulletin , Vol. 86, pp. 493-552.
• Palmer, B. R. & Gignac, G. E (2012), "The impact of emotionally intelligent leadership on talent retention, discretionary effort and employment brand", Industrial and Commercial Training, Vol. 44 Iss: 1, pp.9 – 18.
• Ravichandran et.al (2011) “The Impact of Emotional Intelligence on Employee Work Engagement Behavior: An Empirical Study” International Journal of Business and Management. Vol. 6, No. 11; November 2011.
• Rosete, D. and Ciarrochi, J. (2005) “EI and its relationship to workplace performance of leadership effectiveness”. Leadership & Organization Development Journal, 26, 388-399.
• Romzek, S. Barbara (1989) Personal Consequences of Employee Commitment, The Academy of Management Journal, Vol.32, No.3, pp. 649-661.
• Salovey, P., & Mayer, J. (1990). Emotional intelligence.Imagination, Cognition and Personality, Vol. 9.
• Schaufeli, W.B. and Bakker, A.B. (2004), “Job demands, job resources, and their relationship with burnout and engagement: a multi-sample study”, Journal of Organizational Behavior, Vol. 25, pp. 293-315.
• Woodruffe, C. (2005), “Employee engagement”, British Journal of Administrative Management, Vol. 50, pp. 28-9.
67
Emotional Intelligence and Employee Engagement: Key to Retention
India a fastest emerging economy is heavily dependent on energy for industrial development and growth which will lead to achieve the human development goals. The country’s energy supply and demand has been a challenge for all including the Government as it needs to create the opportunities for increased power generation and dissemination or alternative arrangements. Various initiatives by the Government, organizations and industries regarding energy consumption and efficiency have been taken. This case study is about one such initiative by the Faridabad Small Industries Association. Faridabad Small Industries Association (FSIA) has initiated the Word Bank Funded project for the Faridabad industries. SIDBI executed the project through FSIA and its SPV IamSME of India.
Keywords: Energy Efficiency, Growth, Faridabad Small Industries Association
Case Study: An effort ofFaridabad Entrepreneurs for Energy Efficiency
Abstract
Introduction
India is one of the fastest growing economies in the
world with a growth rate ranging between 5-9% in the
last decade. The country is further targeting for double
digit growth rate in the next decade. As the country
witnessed slow growth rate from 2008-09 it needs to
sustain at least an 8-10% of economic growth rate over
the next twenty years to eradicate poverty and meet the
human development goals.
Energy is the vital factor of economic growth. Future
economic growth rate depends upon the long-term
availability of quality energy from the affordable,
accessible and secure sources. To deliver sustained
growth rate and to meet the requirement of energy of all
the citizens, the country needs to increase its primary
energy supply, by electricity generation, and capacity
and supply manifolds. According to the reports of World
Resources Institute India’s energy demand will be
approximately double than today in 2030.
India’s requirement for energy is growing at a
extraordinary rate. The annual electricity generation
and consumption in India has increased by
approximately 64% in the last decade. As per the Global
Environment Facility (GEF), the industry is the largest
consumer of energy in the Indian economy; accounting
for over 50% of total primary energy consumption in the
country. India’s commercial energy supply would need
to grow from 5.2% to 6.1% per annum while its total
primary energy supply would need to grow at 4.3% to
5.1% annually.
As per the report ICLEI South Asia 2007, power
generation capacity must be nearly 8,00,000 MW from
Bindu Agrawal*
*Associate Professor, Manav Rachna University, Faridabad, Haryana
68
the current capacity of around 1,60,000 MW inclusive of
all captive plants by 2031-32. As per the report of Trends
in Global energy efficiency 2011, the efficiency of the
power sector is decreasing and in 2009 it stood at 30%
compared with 36% in 1990. Thus it requires the setting
up of more power plants and energy generation. The
resources are limited thus the energy saved at any point
will contribute to energy generation and it leads to the
requirement of energy consumption and energy
efficiency.
Energy Efficiency
Energy efficiency is the use of technology that requires
less energy to perform the same function. It is often
viewed as a resource option like coal, oil or natural gas. It
provides additional economic value by preserving the
resource base and reducing pollution. The concern
towards energy efficiency emerged due to increased
carbon emission, poor availability of resources, supply
scenario and rising energy prices.
The Government, different companies and industry
associations, are aware that increasing energy efficiency
would lead to cutting the costs and help in achieving
sustainable economic growth, and they establish goals to
improve energy productivity.
The importance of energy efficiency in the development
of the country was recognized during 1972 in India and in
mid 1990’s a drive for promoting energy efficiency
through technical assistance and training activities aimed
at exposing Indian organizations to management and
technological advancement in the West took place. The
Government of India initiated different energy efficiency
related programs, with the help of various laws and
regulations. All these regulations have been gradually
introduced and implemented effectively in the last two
decades.
With reference to the energy efficiency the Indian
Government created Petroleum Conservation Research
Association (PCRA) in 1978. To promote and accelerate
the energy efficiency drive the Government further
introduced the Energy conservation act 2001 with target
objective of 5% reduction in energy consumption by
2015. This law came into force in March 2002. It was
required to implement specific actions and introduction
of consumption labels and performance standards for
electrical appliances on large energy consumers and for
this Bureau of energy efficiency was created to
implement the mentioned provisions.
The mission of Bureau of Energy Efficiency is to develop
programs and strategies on self-regulation and market
principles to reduce the intensity of energy in the Indian
economy. Few other activities of BEE are the
development of energy performance labels for
refrigerators, motors, air conditioners, and other mass
produced equipment, certification of energy managers
and auditors, assisting industry in the benchmarking of
their energy use, and energy audits of prominent
government buildings. BEE is also working closely with
different agencies at the state/ central level in order to
provide energy efficiency services through public-private
partnership.
Different Industry associations in India are playing an
important role in energy efficiency. The Federation of
Indian Chambers of Commerce and Industry (FICCI) and
Confederation of Indian Industry (CII) are involved in
capacity building through the organization of training
programs, workshops, conferences, exhibitions, poster
displays, awards, and field visits.
Efficiency can be increased in energy extraction,
conversion, transportation, as well as in consumption. It
includes the same level of service provided by alternate
means that require less energy. The major areas where
energy efficiency can make a substantial impact are
mining, electricity generation, electricity transmission,
distribution, pumping water, industrial production and
processes, transport equipment, mass transport, building
design, construction, heating ventilation and air
conditioning, lighting and household appliances.
There is a huge potential of Energy saving in all sector in
India. The target for energy savings in the 10th Plan is
95,000 Million Units which is about 13% of the estimated
demand of 7,19,000 Million Units in the terminal year of
the 11th Plan.
About the Study
The article is about energy efficiency drive at Faridabad,
industrial hub of auto component manufactures in
69
Case Study: An effort of Faridabad Entrepreneurs for Energy Efficiency
Haryana. The objective of this case study is to explore the
energy efficiency drive in Faridabad and compile the
literature. The drive included the efforts by Faridabad
Small Industries Association (FSIA ), SIDBI and IamSME of
India named industry association. In this World Bank
funded project a sample of 200 organizations was
covered. For the purpose of study the authors
interviewed the representatives from IamSME of India a
chapter of FSIA and then compiled the same.
Initiative
Faridabad Small Industries Association has initiated the
Word Bank Funded project for the Faridabad industries.
SIDBI executed the project through FSIA and its SPV
IamSME of India.
1. The survey of 400 industries was done for
energy efficiency.
2. These industries were selected on the basis of
high consumption of electricity
3. Five sectors were chosen
i. Light Engineering
ii. Dye Casting
iii. Casting and fordging
iv. Plastic and sheet metal
v. Miscellaneous
4. Out of those 400 industries only 200 were
selected for the detailed survey on the basis of
energy efficiency potential.
5. The implementation of energy efficiency
measures was done in those 250 units.
6. Energy audit was conducted first and on the
basis of audits, required energy efficiency
equipment was installed in those units.
7. After installation of energy efficiency
equipment at unit these firms could able to
save on an average 10%- 20% on their energy
bills.
8. For installation of this equipment financing was
facilitated by the FSIA through banks and MSME
financing schemes.
9. The payback period of investment was
calculated from 1.5 years to 2 years as per the
efficiency management equipment cost.
10. Within a year FSIA could able to get result from
these efforts and inspired other industries for
adopting the same.
Role of FSIA:
• The funds were provided by the World Bank and
execution was the responsibility of SDBI. But
spreading awareness among industries for energy
efficiency was the main role of FSIA.
• It was done through various workshops conducted
by FSIA in Faridabad
• A Cluster Coordination committee was made to
monitor the progress of this project at various stages
• Various organizations were involved in this project
like PWC (Price Waters & Coppers) , DESL, FICCI, BEE
etc.
• Finally a project report has been prepared and
submitted to the World Bank with the
recommendation and workable models, tested in
Faridabad .
• Other Industrial Association can adopt this model of
working and energy efficiency at local level
Conclusion
There are various agencies which are working to provide
companies and governments with the best energy
efficiency practices to reduce energy costs and prepare
for a low-carbon future. Their experts offer an integrated
service package comprising technology, policy, and
financing components. These agencies seek fund from
the Government or international agencies and conduct
the projects in the interest of the society at large, thus the
authors suggest here the same kinds of initiatives by the
other industries association to increase the pace and
accessibility of such programs and contribute in saving
energy as it will lead to increased energy with us.
References
• “Corporate Environmental Reporting on the Internet
– An Insight into Indian Practices”
• Integrated Energy Policy: Report of the Expert
Committee, Government of India, Planning
Commission, New Delhi, August 2006
• Malarvizhi, P., Yadav, S., Corporate environmental
reporting on the internet: An insight into Indian
practices, presented for the track “Environmental
70
Prastuti: Vol. 5, No. 1, July 2016
Strategy” in the 11th Annual Convention of the
Strategic Management Forum, May 8 – 10, 2008 at
Indian Institute of Technology, Kanpur, India.
• Phadke A., Sathaye J. and Padmanabhan S. (2005)
Economic benefits of Reducing Maharashtra’s
electricity shortage through end-use efficiency
improvement. LBNL Report 57053
• Renewable Energy and Energy Efficiency Status in
India, A report compiled by ICLEI South Asia, 2007
• Sathaye J., J. Roy, R. Khaddaria and S. Das, (2005)
Reducing Electricity Deficit through Energy Efficiency
in India: An Evaluation of Macroeconomic Benefits
Accepted for presentation at the Fifteenth
International Input-Output Conference held from
June 27 to July 1, 2005 at Renmin University, Beijing,
China.
• Trends in Global Energy Efficiency, Country Report,
India, 2011
Websites:
• http://smallb.in/%20/environment%20/energy-
efficiency-cost-savings%20/energy-efficiency-
government-india
• http://mercindia.org.in/Orders_2005.htm
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Case Study: An effort of Faridabad Entrepreneurs for Energy Efficiency
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